Long-Term Debt

12 Months Ended

May 31, 2026


NOTE 7—LONG-TERM DEBT

The following table displays, by debt product type, long-term debt outstanding, the weighted-average interest rates and the maturity date as of May 31, 2026 and 2025. Long-term debt outstanding totaled $28,346 million and $27,164 million as of May 31, 2026 and 2025, respectively, and accounted for 79% and 78% of total debt outstanding as of each respective date. Long-term debt with fixed and variable interest rates accounted for 90% and 10%, respectively, of our total long-term debt outstanding as of May 31, 2026, compared with 94% and 6%, respectively, of our total long-term debt outstanding as of May 31, 2025.

Table 7.1: Long-Term Debt—Debt Product Types and Weighted-Average Interest Rates


	May 31,
	2026					2025
(Dollars in thousands)	Amount		Weighted- Average Interest Rate		Maturity(1)	Amount		Weighted- Average Interest Rate		Maturity(1)
Secured long-term debt:
Collateral trust bonds(2)	$	6,670,191	3.70	%	2026-2049	$	7,082,711	3.68	%	2025-2049
Unamortized premium (discount), net	(140,322)					(155,393)
Debt issuance costs	(27,466)					(31,616)
Total collateral trust bonds	6,502,403					6,895,702
Guaranteed Underwriter Program notes payable	5,338,722		3.38		2027-2055	6,456,852		3.31		2025-2055
Farmer Mac notes payable	3,911,993		3.86		2026-2055	3,780,461		4.00		2025-2049



Total secured notes payable	9,250,715					10,237,313
Total secured long-term debt	15,753,118		3.63			17,133,015		3.61
Unsecured long-term debt:
Medium-term notes sold through dealers(3)	12,242,476		4.44		2026-2037	9,637,577		4.64		2025-2037
Medium-term notes sold to members	376,726		4.31		2026-2045	419,648		4.61		2025-2037
Medium-term notes sold through dealers and to members	12,619,202		4.44			10,057,225		4.64
Unamortized premium (discount), net	551					2,641
Debt issuance costs	(26,937)					(29,180)






Total unsecured long-term debt	12,592,816		4.44			10,030,686		4.64
Total long-term debt	$	28,345,934	3.99			$	27,163,701	3.99

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(1)Maturity is presented based on calendar year.

(2)Collateral trust bonds represent secured obligations sold to investors in the capital markets, including those issued through both public offerings and private placement transactions.

(3)Amount includes medium-term notes issued to both institutional and retail investors in the capital markets.

The following table presents the principal amount of long-term debt maturing in each of the five fiscal years subsequent to May 31, 2026 and thereafter.

Table 7.2: Long-Term Debt—Maturities and Weighted-Average Interest Rates


(Dollars in thousands)	Maturity Amount(1)		Weighted-Average Interest Rate
2027	$	4,598,356	3.75	%
2028	5,038,985		4.03
2029	4,597,695		4.11
2030	2,613,770		4.01
2031	1,947,007		3.68
Thereafter	9,744,295		4.08
Total	$	28,540,108	3.99

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(1)Amounts presented are based on the face amount of debt outstanding as of May 31, 2026, and therefore do not include debt issuance costs and unamortized premiums or discounts.

Secured Debt

Long-term secured debt of $15,753 million and $17,133 million as of May 31, 2026 and 2025, respectively, represented 56% and 63% of total long-term debt outstanding as of each respective date. We were in compliance with all covenants and conditions under our secured debt indentures as of May 31, 2026 and 2025. We are required to pledge eligible mortgage notes in an amount at least equal to the outstanding balance of our secured debt. See “Note 4—Loans” in this Report for information on pledged collateral under our secured debt agreements.

Collateral Trust Bonds

Collateral trust bonds represent secured obligations sold to investors in the capital markets. Collateral trust bonds are secured by the pledge of mortgage notes or eligible securities in an amount at least equal to the principal balance of the bonds outstanding. We repaid $413 million in principal amount of collateral trust bonds that matured during FY2026.

Guaranteed Underwriter Program Notes Payable

We repaid $1,118 million of notes payable outstanding under the Guaranteed Underwriter Program of the USDA (the “Guaranteed Underwriter Program”) during FY2026. We had up to $1,800 million available for access under the Guaranteed Underwriter Program as of May 31, 2026.

On January 29, 2026, we closed on a $450 million Series W committed loan facility from the U.S. Treasury Department’s Federal Financing Bank under the Guaranteed Underwriter Program. Pursuant to this facility, we may borrow any time before July 15, 2030. Each advance is subject to quarterly amortization and a final maturity not longer than 30 years from the date of the advance.

The notes outstanding under the Guaranteed Underwriter Program contain a provision that if during any portion of the fiscal year, our senior secured credit ratings do not have at least two of the following ratings: (i) A3 or higher from Moody’s, (ii) A- or higher from S&P, (iii) A- or higher from Fitch or (iv) an equivalent rating from a successor rating agency to any of the above rating agencies, we may not make cash patronage capital distributions in excess of 5% of total patronage capital. We are required to pledge eligible distribution system or power supply system loans as collateral in an amount at least equal to the total principal amount of notes outstanding under the Guaranteed Underwriter Program.

Farmer Mac Notes Payable

We have a revolving note purchase agreement with Farmer Mac, under which we can borrow up to $6,500 million from Farmer Mac at any time, subject to market conditions, through January 14, 2030, after which the agreement allows for successive one-year renewals of the draw period upon sixty days’ notice by CFC, subject to approval by Farmer Mac and Farmer Mac Mortgage Securities Corporation. Pursuant to this revolving note purchase agreement, we can borrow, repay and re-borrow funds at any time through maturity, as market conditions permit, provided the outstanding principal does not exceed the total available under the agreement. Each borrowing is documented with a pricing agreement setting forth the interest rate, maturity date and other terms. We may select a fixed or variable rate for each advance.

We borrowed an aggregate principal amount of $250 million and repaid $118 million in long-term notes under the Farmer Mac revolving note purchase agreement during FY2026. As of May 31, 2026, $3,912 million was outstanding with $2,588 million available for borrowing. We are required to pledge eligible electric distribution system or electric power supply system loans as collateral in an amount at least equal to the total principal amount of notes outstanding under this agreement.

Unsecured Debt

Long-term unsecured debt of $12,593 million and $10,031 million as of May 31, 2026 and 2025, respectively, represented 44% and 37% of total long-term debt outstanding as of each respective date.

Medium-Term Notes

Medium-term notes represent unsecured obligations that may be issued through dealers in the capital markets or directly to our members. During FY2026, we issued an aggregate principal amount of dealer medium-term notes to institutional investors totaling $4,425 million, of which $2,800 million was at a weighted average fixed interest rate of 4.14% with a weighted average term of three years and $1,625 million was at floating interest rates with a weighted average term of 16 months. We also issued an aggregate principal amount of $18 million dealer medium-term notes to retail investors during FY2026. We repaid $1,239 million in principal amount of dealer medium-term notes during FY2026 and redeemed $600 million of fixed-rate dealer medium-term notes at par plus accrued interest and recognized an immaterial amount of losses on early extinguishment of debt related to unamortized debt issuance costs and discount in our consolidated statements of operations for FY2026 .

Subsequent to FY2026, we issued $300 million of dealer medium-term notes at a floating interest rate with a term of 18 months.