PREVIOUSLY RESTATED ANNUAL CONSOLIDATED STATEMENTS OF CASH FLOWS

The following table sets forth the effects of the restatement of the consolidated statements of cash flows for the years ended December 31, 2010 and 2009, respectively. See also Note 2(b).

FEDERAL AGRICULTURAL MORTGAGE CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS



	For the Year Ended December 31,
	2010									2009
	As Previously Reported			Adjustments			As Restated			As Previously Reported			Adjustments			As Restated
	(In thousands)
Cash flows from operating activities:
Net income	$	52,700		$	—		$	52,700		$	99,600		$	—		$	99,600
Adjustments to reconcile net income to net cash (used in)/provided by operating activities:
Net amortization of premiums and discounts on loans, investments, and Farmer Mac Guaranteed Securities and USDA Guaranteed Securities	11,845			—			11,845			3,926			—			3,926
Amortization of debt premiums, discounts and issuance costs	7,982			—			7,982			12,876			—			12,876
Net change in fair value of trading securities, financial derivatives and loans held for sale	(16,653		)	—			(16,653		)	(105,060		)	—			(105,060		)
Other-than-temporary impairment losses	—			—			—			3,994			—			3,994
Gains on sale of loans and Farmer Mac Guaranteed Securities	—			—			—			(1,581		)	—			(1,581		)
Gains on the sale of available-for-sale investment securities	(266		)	—			(266		)	(3,353		)	—			(3,353		)
Gain on the sale of real estate owned	(10		)	—			(10		)	—			—			—
Total provision for losses	4,310			—			4,310			5,242			—			5,242
Deferred income taxes	(524		)	—			(524		)	35,615			—			35,615
Stock-based compensation expense	2,774			—			2,774			2,694			—			2,694
Proceeds from repayment and sale of trading investment securities	747			—			747			787			—			787
Purchases of loans held for sale	(661,310		)	—			(661,310		)	(164,335		)	—			(164,335		)
Proceeds from repayment of loans purchased as held for sale	98,430			(54,610		)	43,820			62,125			(31,461		)	30,664
Proceeds from sale of loans purchased as held for sale	—			—			—			—			73,641			73,641
Net change in:
Interest receivable	(23,117		)	—			(23,117		)	5,880			—			5,880
Guarantee and commitment fees receivable	20,264			—			20,264			6,093			—			6,093
Other assets	19,299			—			19,299			76,534			—			76,534
Accrued interest payable	17,569			—			17,569			(908		)	—			(908		)
Other liabilities	(18,243		)	—			(18,243		)	(9,019		)	—			(9,019		)
Net cash (used in)/provided by operating activities	(484,203		)	(54,610		)	(538,813		)	31,110			42,180			73,290
Cash flows from investing activities:
Purchases of available-for-sale investment securities	(1,075,852		)	—			(1,075,852		)	(325,871		)	—			(325,871		)
Purchases of Farmer Mac Guaranteed Securities	(2,010,991		)	—			(2,010,991		)	(2,047,954		)	—			(2,047,954		)
Purchases of loans held for investment	(34,387		)	—			(34,387		)	(59,627		)	—			(59,627		)
Purchases of defaulted loans	(6,082		)	—			(6,082		)	(21,269		)	—			(21,269		)
Proceeds from repayment of available-for-sale investment securities	350,197			—			350,197			195,589			—			195,589
Proceeds from repayment of Farmer Mac Guaranteed Securities	711,462			—			711,462			725,761			—			725,761
Proceeds from repayment of loans purchased as held for investment	237,168			54,610			291,778			41,298			31,461			72,759
Proceeds from sale of available-for-sale investment securities	100,833			—			100,833			306,506			—			306,506
Proceeds from sale of trading securities - fair value option	5,013			—			5,013			—			—			—
Proceeds from sale of Farmer Mac Guaranteed Securities	30,725			—			30,725			188,204			—			188,204
Proceeds from sale of real estate owned	1,055			—			1,055			40,955			—			40,955
Proceeds from sale of loans purchased as held for investment	—			—			—			358,953			(73,641		)	285,312
Net cash used in investing activities	(1,690,859		)	54,610			(1,636,249		)	(597,455		)	(42,180		)	(639,635		)
Cash flows from financing activities:
Proceeds from issuance of discount notes	66,804,224			—			66,804,224			54,840,697			—			54,840,697
Proceeds from issuance of medium-term notes	2,729,530			—			2,729,530			3,475,856			—			3,475,856
Payments to redeem discount notes	(65,300,682		)	—			(65,300,682		)	(54,675,917		)	—			(54,675,917		)
Payments to redeem medium-term notes	(1,872,590		)	—			(1,872,590		)	(2,727,000		)	—			(2,727,000		)
Excess tax benefits related to stock-based awards	763			—			763			—			—			—
Payments to third parties on debt securities of consolidated trusts	(176,260		)	—			(176,260		)	—			—			—
Proceeds from common stock issuance	172			—			172			42			—			42
Issuance costs on retirement of preferred stock	(5,784		)	—			(5,784		)	—			—			—
Proceeds from preferred stock issuance - Farmer Mac II LLC	241,853			—			241,853			—			—			—
Proceeds from preferred stock issuance	—			—			—			48,378			—			48,378
Retirement of Series B Preferred stock	(144,216		)	—			(144,216		)	—			—			—
Dividends paid - Non-controlling interest - preferred stock	(20,644		)	—			(20,644		)	—			—			—
Dividends paid on common and preferred stock	(6,178		)	—			(6,178		)	(19,329		)	—			(19,329		)
Net cash provided by financing activities	2,250,188			—			2,250,188			942,727			—			942,727
Net increase in cash and cash equivalents	75,126			—			75,126			376,382			—			376,382
Cash and cash equivalents at beginning of period	654,794			—			654,794			278,412			—			278,412
Cash and cash equivalents at end of period	$	729,920		$	—		$	729,920		$	654,794		$	—		$	654,794