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- FARMER MAC GUARANTEED SECURITIES AND USDA GUARANTEED SECURITIES
 12 Months Ended
Dec. 31, 2013
Investments, Debt and Equity Securities [Abstract]  
Farmer Mac Guaranteed Securities and USDA Guaranteed Securities Disclosure
FARMER MAC GUARANTEED SECURITIES AND USDA SECURITIES

The following tables set forth information about on-balance sheet Farmer Mac Guaranteed Securities and USDA Securities as of December 31, 2013 and 2012:

Table 5.1

 
December 31, 2013
 
Unpaid Principal Balance
 
Unamortized Premium/(Discount)
 
Amortized
Cost
 
Unrealized
Gains
 
Unrealized
Losses
 
Fair Value
 
(in thousands)
Available-for-sale:
 
 
 
 
 
 
 
 
 
 
 
AgVantage
$
5,066,855

 
$
125

 
$
5,066,980

 
$
64,051

 
$
(60,665
)
 
$
5,070,366

Farmer Mac Guaranteed USDA Securities
21,089

 
(518
)
 
20,571

 
669

 
(6
)
 
21,234

Total Farmer Mac Guaranteed Securities
5,087,944

 
(393
)
 
5,087,551

 
64,720

 
(60,671
)
 
5,091,600

USDA Securities
1,590,433

 
4,585

 
1,595,018

 
2,753

 
(44,102
)
 
1,553,669

Total available-for-sale
6,678,377

 
4,192

 
6,682,569

 
67,473

 
(104,773
)
 
6,645,269

Trading:
 
 
 
 
 

 
 

 
 

 
 

USDA Securities
55,373

 
4,972

 
60,345

 
193

 
(2,194
)
 
58,344

Total Farmer Mac Guaranteed Securities and USDA Securities
$
6,733,750

 
$
9,164

 
$
6,742,914

 
$
67,666

 
$
(106,967
)
 
$
6,703,613


 
December 31, 2012
 
Unpaid Principal Balance
 
Unamortized Premium/(Discount)
 
Amortized
Cost
 
Unrealized
Gains
 
Unrealized
Losses
 
Fair Value
 
(in thousands)
Available-for-sale:
 
 
 
 
 
 
 
 
 
 
 
AgVantage
$
4,637,706

 
$
160

 
$
4,637,866

 
$
110,753

 
$
(9,042
)
 
$
4,739,577

Farmer Mac Guaranteed USDA Securities
26,238

 
(452
)
 
25,786

 
909

 
(14
)
 
26,681

Total Farmer Mac Guaranteed Securities
4,663,944

 
(292
)
 
4,663,652

 
111,662

 
(9,056
)
 
4,766,258

USDA Securities
1,461,184

 
5,975

 
1,467,159

 
19,605

 
(169
)
 
1,486,595

Total available-for-sale
6,125,128

 
5,683

 
6,130,811

 
131,267

 
(9,225
)
 
6,252,853

Trading:
 
 
 
 
 

 
 

 
 

 
 

USDA Securities
98,499

 
6,415

 
104,914

 
624

 
(1,350
)
 
104,188

Total Farmer Mac Guaranteed Securities and USDA Securities
$
6,223,627

 
$
12,098

 
$
6,235,725

 
$
131,891

 
$
(10,575
)
 
$
6,357,041



The unrealized losses presented above are principally due to higher interest rates from the date of acquisition to December 31, 2013 and 2012, as applicable.  The credit exposure related to Farmer Mac's USDA Guarantees line of business is covered by the full faith and credit guarantee of the United States.  As of December 31, 2013, 13 AgVantage securities in loss positions had been in a loss position for more than 12 months with a total unrealized loss of $8.7 million. Each AgVantage security backed by agricultural mortgages requires some level of overcollateralization, or, in the case of rural utilities loans, 100 percent collateralization, and is secured by eligible loans of the issuing institution with a requirement that delinquent loans be removed from the collateral pool and replaced with current eligible loans. Thus, Farmer Mac does not believe it will realize any of those losses. Farmer Mac has concluded that none of the unrealized losses on its available-for-sale Farmer Mac Guaranteed Securities and USDA Securities represents an other-than-temporary impairment as of December 31, 2013 and 2012.  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.

During 2013, 2012, and 2011, Farmer Mac realized no gains or losses from the sale of Farmer Mac Guaranteed Securities and USDA Securities.

The amortized cost, fair value, and weighted average yield of available-for-sale Farmer Mac Guaranteed Securities and USDA Securities by remaining contractual maturity as of December 31, 2013 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.

Table 5.2

 
December 31, 2013
 
Available-for-Sale Securities
 
Amortized
Cost
 
Fair Value
 
Weighted-
Average
Yield
 
(dollars in thousands)
Due within one year
$
904,030

 
$
913,404

 
2.37
%
Due after one year through five years
3,153,604

 
3,181,924

 
2.18
%
Due after five years through ten years
757,080

 
748,279

 
2.02
%
Due after ten years
1,867,855

 
1,801,662

 
2.59
%
Total
$
6,682,569

 
$
6,645,269

 
2.30
%



Farmer Mac did not own any held-to-maturity Farmer Mac Guaranteed Securities or USDA Securities as of December 31, 2013 and 2012. As of December 31, 2013, Farmer Mac owned trading USDA Securities with an amortized cost of $60.3 million, a fair value of $58.3 million, and a weighted average yield of 5.60 percent. As of December 31, 2012, Farmer Mac owned trading USDA Securities with an amortized cost of $104.9 million, a fair value of $104.2 million, and a weighted average yield of 5.77 percent.