
3.	FARMER MAC GUARANTEED SECURITIES AND USDA GUARANTEED SECURITIES

The following table sets forth information about on-balance sheet Farmer Mac Guaranteed Securities and USDA Guaranteed Securities as of March 31, 2012 and December 31, 2011:



	March 31, 2012
	Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value
	(in thousands)
Available-for-sale:
Farmer Mac I	$	2,941,184	$	68,154	$	(1,115	)	$	3,008,223
Farmer Mac II	34,463		1,670		(4		)	36,129
Rural Utilities	1,315,100		30,409		—			1,345,509
USDA Guaranteed Securities	1,292,227		36,566		(91		)	1,328,702
Total available-for-sale	5,582,974		136,799		(1,210		)	5,718,563
Trading:
USDA Guaranteed Securities	184,207		2,477		(2,287		)	184,397
Total Farmer Mac Guaranteed Securities and USDA Guaranteed Securities	$	5,767,181	$	139,276	$	(3,497	)	$	5,902,960



	December 31, 2011
	Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value
	(in thousands)
Available-for-sale:
Farmer Mac I	$	2,741,192	$	67,895	$	(1,460	)	$	2,807,627
Farmer Mac II	34,692		924		(17		)	35,599
Rural Utilities	1,410,800		35,246		—			1,446,046
USDA Guaranteed Securities	1,244,519		35,149		(122		)	1,279,546
Total available-for-sale	5,431,203		139,214		(1,599		)	5,568,818
Trading:
USDA Guaranteed Securities	213,130		1,804		(2,575		)	212,359
Total Farmer Mac Guaranteed Securities and USDA Guaranteed Securities	$	5,644,333	$	141,018	$	(4,174	)	$	5,781,177

The unrealized losses presented above are principally due to changes in longer-term interest rates from the date of acquisition to March 31, 2012 and December 31, 2011, as applicable. As of March 31, 2012 and December 31, 2011, the unrealized losses presented above are related to Farmer Mac I, Farmer Mac II Guaranteed Securities, which are USDA-guaranteed portions of loans backed by the full faith and credit of the United States, and USDA Guaranteed Securities. None of the Farmer Mac I Guaranteed Securities has been in an unrealized loss position for greater than 12 months. Farmer Mac has concluded that none of the unrealized losses on its available-for-sale Farmer Mac Guaranteed Securities represents an other-than-temporary impairment as of March 31, 2012 and December 31, 2011. Farmer Mac does not intend to sell these securities and it is not more likely than not that Farmer Mac will be required to sell the securities before recovery of the amortized cost basis.

Farmer Mac received proceeds of $3.4 million and $7.4 million, respectively, and realized no gains or losses from the sale of Farmer Mac Guaranteed Securities for the three months ended March 31, 2012 and 2011.

The amortized cost, fair value and weighted average yield of available-for-sale Farmer Mac Guaranteed Securities and USDA Guaranteed Securities by remaining contractual maturity as of March 31, 2012 are set forth below. The balances presented are based on their final maturities, although the actual maturities may differ due to prepayments of the underlying assets.



	Farmer Mac Guaranteed Securities and USDA Guaranteed Securities Available-for-Sale as of March 31, 2012
	Amortized Cost		Fair Value		Weighted- Average Yield
	(dollars in thousands)
Due within one year	$	491,081	$	493,401	2.24	%
Due after one year through five years	3,298,938		3,387,473		2.62	%
Due after five years through ten years	696,794		708,389		2.76	%
Due after ten years	1,096,161		1,129,300		3.76	%
Total	$	5,582,974	$	5,718,563	2.83	%

Farmer Mac did not own any held-to-maturity Farmer Mac Guaranteed and USDA Guaranteed Securities as of March 31, 2012 and December 31, 2011. As of March 31, 2012, Farmer Mac owned trading USDA Guaranteed Securities with an amortized cost of $184.2 million, a fair value of $184.4 million and a weighted average yield of 5.83 percent. As of December 31, 2011, Farmer Mac owned trading USDA Guaranteed Securities with an amortized cost of $213.1 million, a fair value of $212.4 million and a weighted average yield of 5.83 percent.