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Financial Derivatives - (Tables)
 3 Months Ended
Mar. 31, 2014
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Table Text Block]
The following tables summarize information related to Farmer Mac's financial derivatives on a gross basis without giving consideration to master netting arrangements as of March 31, 2014 and December 31, 2013 and the effects of financial derivatives on the consolidated statements of operations for the three months ended March 31, 2014 and 2013:

Table 4.1

  
March 31, 2014
  
 
 
Fair Value
 
Weighted-
Average
Pay Rate
 
Weighted-
Average Receive Rate
 
Weighted-
Average
Forward
Price
 
Weighted-
Average
Remaining
Life (in years)
  
Notional Amount
 
Asset
 
(Liability)
 
 
 
 
  
(dollars in thousands)
Fair value hedges:
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest rate swaps:
 
 
 
 
 
 
 
 
 
 
 
 
 
Pay fixed non-callable
$
900,000

 
$
—

 
$
(28,789
)
 
2.25%
 
0.24%
 
 
 
3.00
Cash flow hedges:
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest rate swaps:
 
 
 
 
 
 
 
 
 
 
 
 
 
Pay fixed non-callable
10,000

 
—

 
(36
)
 
2.50%
 
0.48%
 
 
 
6.70
No hedge designation:
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest rate swaps:
 
 
 
 
 
 
 
 
 
 
 
 
 
Pay fixed non-callable
507,820

 
3,074

 
(43,448
)
 
4.28%
 
0.24%
 
 
 
7.55
Receive fixed non-callable
4,431,663

 
8,045

 
(183
)
 
0.26%
 
0.68%
 
 
 
0.47
Receive fixed callable
195,000

 
4

 
(1,081
)
 
0.10%
 
0.65%
 
 
 
3.03
Basis swaps
565,189

 
336

 
(572
)
 
0.25%
 
0.26%
 
 
 
1.86
Agency forwards
—

 
—

 
—

 
 
 
 
 
—

 
 
Treasury futures
18,400

 
15

 
—

 
 
 
 
 
123.58

 
 
Credit valuation adjustment
 
 
(117
)
 
222

 
 
 
 
 
 
 
 
Total financial derivatives
$
6,628,072

 
$
11,357

 
$
(73,887
)
 
  
 
  
 
 
 
  
Collateral pledged
 
 
—

 
14,223

 
 
 
 
 
 
 
 
Net amount
 
 
$
11,357

 
$
(59,664
)
 
 
 
 
 
 
 
 
  
December 31, 2013
  

 
Fair Value
 
Weighted-
Average
Pay Rate
 
Weighted-
Average Receive Rate
 
Weighted-
Average
Forward
Price
 
Weighted-
Average
Remaining
Life (in years)
  
Notional Amount
 
Asset
 
(Liability)
 
 
 
 
  
(dollars in thousands)
Fair value hedges:
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest rate swaps:
 
 
 
 
 
 
 
 
 
 
 
 
 
Pay fixed non-callable
$
900,000

 
$
—

 
$
(28,989
)
 
2.25%
 
0.24%
 
 
 
3.25
Cash flow hedges:
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest rate swaps:
 
 
 
 
 
 
 
 
 
 
 
 
 
Pay fixed non-callable
10,000

 
68

 
—

 
2.50%
 
0.48%
 
 
 
6.95
No hedge designation:
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest rate swaps:
 
 
 
 
 
 
 
 
 
 
 
 
 
Pay fixed non-callable
806,596

 
7,570

 
(45,360
)
 
4.63%
 
0.24%
 
 
 
4.86
Receive fixed non-callable
4,324,663

 
11,836

 
(262
)
 
0.27%
 
0.70%
 
 
 
0.53
Receive fixed callable
175,000

 
83

 
(934
)
 
0.10%
 
0.65%
 
 
 
3.30
Basis swaps
404,288

 
276

 
(318
)
 
0.32%
 
0.29%
 
 
 
1.52
Agency forwards
65,704

 
86

 
—

 
 
 
 
 
98.91

 
 
Treasury futures
5,600

 
—

 
(1
)
 
 
 
 
 
123.02

 
 
Credit valuation adjustment
 
 
(201
)
 
156

 
 
 
 
 
 
 
 
Total financial derivatives
$
6,691,851

 
$
19,718

 
$
(75,708
)
 
  
 
  
 
 
 
  
Collateral pledged
 
 
—

 
11,320

 
 
 
 
 
 
 
 
Net amount
 
 
$
19,718

 
$
(64,388
)
 
 
 
 
 
 
 
 
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance [Table Text Block]
Table 4.2

 
(Losses)/Gains on Financial Derivatives and Hedging Activities
  
For the Three Months Ended
  
March 31, 2014
 
March 31, 2013
 
(in thousands)
Fair value hedges:
 
 
 
Interest rate swaps (1)
$
200

 
$
5,791

Hedged items
2,750

 
(3,138
)
Gains on hedging activities
2,950

 
2,653

No hedge designation:
 
 
 
Interest rate swaps
(9,548
)
 
2,846

Agency forwards
(852
)
 
(984
)
Treasury futures
(128
)
 
(21
)
(Losses)/gains on financial derivatives not designated in hedging relationships
(10,528
)
 
1,841

(Losses)/gains on financial derivatives and hedging activities
$
(7,578
)
 
$
4,494

(1)
Included in the assessment of hedge effectiveness at March 31, 2014, but excluded from the amounts in the table, were losses of $2.9 million for the three months ended March 31, 2014, attributable to the fair value of the swaps at the inception of the hedging relationship. Accordingly, the amounts recognized as hedge ineffectiveness for the three months ended March 31, 2014 were gains of $29,000. The comparable amounts at March 31, 2013 were losses of $3.0 million for the three months ended March 31, 2013 attributable to the fair value of the swaps at the inception of the hedging relationship and, accordingly, losses of $0.3 million for the three months ended March 31, 2013 attributable to hedge ineffectiveness.


As of March 31, 2014, Farmer Mac had outstanding basis swaps with Zions First National Bank, a related party, with a total notional amount of $22.1 million and a fair value of $(0.2) million, compared to $29.3 million and $(0.2) million, respectively, as of December 31, 2013.  Under the terms of those basis swaps, Farmer Mac pays Constant Maturity Treasury-based rates and receives LIBOR.  Those swaps hedge most of the interest rate basis risk related to loans Farmer Mac purchases that pay a Constant Maturity Treasury-based rate and the discount notes Farmer Mac issues to fund the loan purchases.  The pricing of discount notes is closely correlated to LIBOR rates.  Farmer Mac recorded unrealized gains on those outstanding basis swaps for the three months ended March 31, 2014 and 2013 of $0.1 million and $0.2 million, respectively.