RELATED PARTY TRANSACTIONS

Farmer Mac considers an entity to be a related party if (1) the entity holds at least five percent of a class of Farmer Mac voting common stock or (2) the institution has an affiliation with a Farmer Mac director and conducts material business with Farmer Mac. As provided by Farmer Mac's statutory charter, only banks, insurance companies and other financial institutions or similar entities may hold Farmer Mac's Class A voting common stock and only institutions of the FCS may hold Farmer Mac's Class B voting common stock. Farmer Mac's statutory charter also provides that Class A stockholders elect five members of Farmer Mac's 15-member board of directors and that Class B stockholders elect five members of the board of directors. Additionally, in order to participate in the Farmer Mac I program, a financial institution must own a requisite amount of Farmer Mac Class A or Class B voting common stock, based on the size and type of institution. As a result of these requirements, Farmer Mac conducts business with related parties in the normal course of Farmer Mac's business. All related party transactions were conducted with terms and conditions comparable to those available to any other program participant not related to Farmer Mac.

Zions First National Bank:

The following transactions occurred between Farmer Mac and Zions First National Bank or its affiliates ("Zions"), which is the largest holder of Farmer Mac Class A voting common stock and a major holder of Class C non-voting common stock, during 2011, 2010 and 2009:



	For the Year Ended December 31,
	2011		2010		2009
	(dollars in thousands)
Unpaid Principal Balance:
Purchases:
Loans	$	125,088	$	176,288	$	77,079
USDA-guaranteed portions	5,218		5,775		2,712
Sales of Farmer Mac Guaranteed Securities	—		5,695		27,797

The purchases of loans from Zions under the Farmer Mac I program represented approximately 25.2 percent, 46.1 percent and 39.5 percent of Farmer Mac I loan purchase volume for the years ended December 31, 2011, 2010 and 2009, respectively, and 4.5 percent, 11.4 percent, and 17.9 percent, respectively, of total Farmer Mac I purchases. The purchases of USDA-guaranteed portions from Zions under the Farmer Mac II program represented approximately 1.3 percent of that program's purchases for the years ended December 31, 2011 and 2010 and 0.8 percent for the year ended December 31, 2009. Of Farmer Mac's total outstanding book of business at December 31, 2011 and 2010, Zions represented 4.7 percent and 4.2 percent, respectively.

Farmer Mac or Zions received the applicable amounts shown below with respect to transactions between the two parties in 2011, 2010 and 2009:



	For the Year Ended December 31,
	2011		2010		2009
	(in thousands)
Guarantee fees received by Farmer Mac	$	940	$	1,210	$	1,393
Servicing fees received by Zions	1,870		1,678		1,585

Farmer Mac and Zions were parties to interest rate swap contracts having an aggregate outstanding notional principal amount of approximately $72.7 million and $85.0 million as of December 31, 2011 and 2010, respectively. As of December 31, 2011 and 2010, Farmer Mac had net interest payable to Zions under those contracts of approximately $1.0 million and $1.4 million, respectively. Zions acted as dealer with respect to approximately $37.0 million, $220.9 million and $678.9 million par value of Farmer Mac discount notes during 2011, 2010 and 2009, respectively. The related commissions Farmer Mac paid to Zions for these services were immaterial.

AgFirst Farm Credit Bank:

Farmer Mac has a related party relationship with AgFirst Farm Credit Bank ("AgFirst"), resulting from a member of Farmer Mac's board of directors also being a member of AgFirst's board of directors through 2009 and AgFirst being a holder of approximately 16.8 percent of Farmer Mac Class B voting common

stock. Amounts reported for 2010 and 2009 include certain transactions with agricultural credit associations affiliated with AgFirst that are not related parties.

AgFirst entered into $8.6 million, $116.2 million and $34.5 million of LTSPC transactions in 2011, 2010 and 2009, respectively, and the aggregate balance of LTSPCs outstanding as of December 31, 2011, 2010 and 2009 was $225.0 million, $387.9 million and $349.5 million, respectively. Farmer Mac received from AgFirst $1.0 million, $1.5 million and $1.6 million in commitment fees in 2011, 2010 and 2009, respectively, and had $0.1 million and $0.2 million of commitment fees receivable as of December 31, 2011 and 2010, respectively.

AgFirst owns certain securities backed by rural housing loans for which Farmer Mac is the second-loss guarantor for the last 10 percent. As of December 31, 2011, 2010, and 2009, the outstanding balance of those securities owned by AgFirst was $231.4 million, $299.0 million, and $374.2 million, respectively. Farmer Mac received guarantee fees of $0.4 million in 2011 and 2010 and $0.3 million for the year 2009, with respect to those securities.

Servicing fees Farmer Mac paid AgFirst for its work as a Farmer Mac central servicer and guarantee fees Farmer Mac earned on Farmer Mac I Guaranteed Securities held by AgFirst were immaterial in 2011, 2010 and 2009.

Farmer Mac also owned $83.0 million par value of AgFirst preferred stock as of December 31, 2010 and $88.0 million as of December 31, 2009. The AgFirst preferred stock was called in 2011.

AgStar Financial Services, ACA:

Farmer Mac had a related party relationship with AgStar Financial Services, ACA ("AgStar") during 2010 and 2009 resulting from a former member of Farmer Mac's board of directors being the President and Chief Executive Officer of AgStar. Effective in June 2010, AgStar was no longer a related party because the President and Chief Executive Officer of AgStar was no longer a member of Farmer Mac's board of directors. Amounts, where presented for 2010, represent activity for the entire year.

In 2010 and 2009, Farmer Mac paid AgStar $1.4 million and $1.6 million, respectively, in servicing fees for its work as a Farmer Mac central servicer.

Farmer Mac purchased from AgStar $0.1 million and $11.9 million related to defaulted loans pursuant to the terms of an LTSPC agreement in 2010 and 2009, respectively.

During 2010 and 2009, Farmer Mac sold Farmer Mac I Guaranteed Securities to AgStar in the amount of $2.9 million and $0.9 million, respectively. Those sales did not result in a gain or loss to Farmer Mac.

During 2010 and 2009, AgStar entered into $30.3 million and $14.7 million, respectively, of new LTSPCs. Farmer Mac received commitment fees of $1.1 million and $1.2 million, respectively, for the years ended December 31, 2010 and 2009. During 2010 and 2009, no existing LTSPCs were converted to Farmer Mac I Guaranteed Securities. The outstanding principal balance of previously converted securities as of December 31, 2009 was $449.2 million. Farmer Mac received $1.7 million and $2.0 million in guarantee fees on those securities during 2010 and 2009, respectively.

The National Rural Utilities Cooperative Financial Corporation:

Farmer Mac considers the National Rural Utilities Cooperative Financial Corporation ("CFC") a related party due to its ownership of approximately 7.9 percent of Class A voting common stock. The following transactions also occurred between Farmer Mac and CFC during 2011, 2010 and 2009:



Farmer Mac Loan Purchases and Guarantees
	For the Year Ended December 31,
	2011		2010		2009
	(in thousands)
Rural Utilities:
Loans	$	203,789	$	313,028	$	28,644
On-balance sheet Farmer Mac Guaranteed Securities	—		650,000		1,695,000
Off-balance sheet Farmer Mac Guaranteed Securities	2,796		2,924		16,009
Total purchases	$	206,585	$	965,952	$	1,739,653

Those transactions with CFC represented 100 percent of Farmer Mac's loan purchase and guarantee volume under the Rural Utilities program for 2011, 2010 and 2009 and represented 6.1 percent, 32.5 percent and 69.2 percent of total purchases for 2011, 2010 and 2009, respectively. Of Farmer Mac's total outstanding book of business at December 31, 2011 and 2010, CFC represented 19.7 percent and 21.6 percent, respectively. As of December 31, 2011 and for the year then ended, Farmer Mac had guarantee fees receivable of $1.1 million from CFC and earned guarantee fees of $5.4 million. As of December 31, 2010 and for the year then ended, Farmer Mac had guarantee fees receivable of $1.2 million from CFC and earned guarantee fees of $6.0 million. As of December 31, 2009 and for the year then ended, Farmer Mac had guarantee fees receivable of $1.7 million from CFC and earned guarantee fees of $6.0 million. Farmer Mac also had interest receivable of $8.2 million and $8.4 million as of December 31, 2011 and 2010, respectively, and earned interest income of $30.9 million, $32.7 million and $32.3 million during 2011, 2010, and 2009, respectively, related to its AgVantage transactions with CFC.

Farm Credit Bank of Texas:

Farmer Mac has a related party relationship with Farm Credit Bank of Texas resulting from the bank being a holder of approximately 7.7 percent of Farmer Mac Class B voting common stock. Amounts reported for 2010 and 2009 include certain transactions with agricultural credit associations affiliated with Farm Credit Bank of Texas that are not related parties. During 2011, Farmer Mac did not enter into any new LTSPCs. During 2010 and 2009, Farm Credit Bank of Texas entered into $26.4 million and $45.6 million, respectively, of new LTSPCs. Farmer Mac received from Farm Credit Bank of Texas commitment fees of $0.3 million, $1.7 million and $1.9 million, respectively, for the years ended December 31, 2011, 2010 and 2009. Commitment fees receivable were immaterial at December 31, 2011 and 2010. The aggregate amount of LTSPCs outstanding as of December 31, 2011 and 2010 was $96.7 million and $136.8 million, respectively. In 2011 and 2010, Farmer Mac paid Farm Credit Bank of Texas $0.8 million and $0.9 million, respectively, in servicing fees for its work as a Farmer Mac central servicer.

Farm Credit West:

Farmer Mac has a related party relationship with Farm Credit West, ACA, resulting from a member of Farmer Mac's board of directors also being an Executive Vice President of Farm Credit West. During 2011, 2010 and 2009, Farm Credit West entered into $2.1 million, $0.5 million and $16.7 million, respectively, of new LTSPCs. Farmer Mac received from Farm Credit West commitment fees of $0.3 million for each of the years ended December 31, 2011, 2010 and 2009. Commitment fees receivable were immaterial at December 31, 2011 and 2010. During 2003 and 2006, Farm Credit West, ACA converted $722.3 million and $129.0 million, respectively, of existing LTSPCs to Farmer Mac I Guaranteed Securities. The aggregate amount of LTSPCs outstanding as of December 31, 2011 and 2010 was $98.3 million and $99.5 million, respectively. The outstanding principal balance of the converted securities as of December 31, 2011 and 2010 was $498.1 million and $576.5 million, respectively. Farmer Mac understands that the current owner of those Farmer Mac Guaranteed Securities is U.S. AgBank, FCB. Farmer Mac received $2.3 million, $2.6 million and $3.0 million in guarantee fees on those securities during 2011, 2010 and 2009, respectively. In 2011, 2010 and 2009, Farmer Mac paid Farm Credit West $1.0 million, $1.9 million and $2.2 million, respectively, in servicing fees for its work as a Farmer Mac central servicer.

Other Related Party Transactions:

Farmer Mac purchased $29.7 million, $27.0 million and $4.7 million in loans from First Dakota Bank in 2011, 2010 and 2009, respectively, and $10.6 million, $4.6 million and $7.0 million in USDA-guaranteed securities from Bath State Bank in 2011, 2010 and 2009, respectively. Farmer Mac received immaterial guarantee fees from First Dakota Bank in the year ended December 31, 2011, compared to $0.2 million in each of the years ended December 31, 2010 and 2009. Farmer Mac received no guarantee fees from Bath State Bank in the year ended December 31, 2011, compared to $0.1 million for each of the years ended December 31, 2010 and 2009. Farm Credit of Western New York, ACA was a related party in 2009. The aggregate amount of LTSPCs Farmer Mac had outstanding with Farm Credit of Western New York as of December 31, 2009 was $35.5 million and Farmer Mac earned $0.2 million in commitment fees in 2009. These institutions had a related party relationship with Farmer Mac resulting from a member of Farmer Mac's board of directors being affiliated with the entity in some respect.

Farmer Mac owned $78.5 million par value of preferred stock and $70.0 million of subordinated debt issued by CoBank as of December 31, 2011 and 2010. Farmer Mac has a related party relationship with CoBank because CoBank is a major holder of Farmer Mac Class B voting common stock.