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 June 30, 2012 and December 31, 2011:



	June 30, 2012
	Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value
	(in thousands)
Available-for-sale:
Farmer Mac I	$	3,140,176	$	85,220	$	(2,064	)	$	3,223,332
Farmer Mac II	28,677		1,231		(9		)	29,899
Rural Utilities	1,165,100		26,136		—			1,191,236
USDA Guaranteed Securities	1,382,737		36,100		(199		)	1,418,638
Total available-for-sale	5,716,690		148,687		(2,272		)	5,863,105
Trading:
USDA Guaranteed Securities	149,745		916		(3,836		)	146,825
Total Farmer Mac Guaranteed Securities and USDA Guaranteed Securities	$	5,866,435	$	149,603	$	(6,108	)	$	6,009,930



	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 wider spreads on mortgage securities from the date of acquisition to June 30, 2012 and December 31, 2011, as applicable. As of June 30, 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 and USDA Guaranteed Securities represents an other-than-temporary impairment as of June 30, 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 realized no gains or losses from the sale of Farmer Mac Guaranteed Securities and USDA Guaranteed Securities for the three and six months ended June 30, 2012 and June 30, 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 June 30, 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 June 30, 2012
	Amortized Cost		Fair Value		Weighted- Average Yield
	(dollars in thousands)
Due within one year	$	542,869	$	546,154	2.11	%
Due after one year through five years	3,261,164		3,357,381		2.61	%
Due after five years through ten years	720,405		735,412		2.91	%
Due after ten years	1,192,252		1,224,158		3.64	%
Total	$	5,716,690	$	5,863,105	2.81	%

Farmer Mac did not own any held-to-maturity Farmer Mac Guaranteed and USDA Guaranteed Securities as of June 30, 2012 and December 31, 2011. As of June 30, 2012, Farmer Mac owned trading USDA Guaranteed Securities with an amortized cost of $149.7 million, a fair value of $146.8 million and a weighted average yield of 5.81 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.