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Financial Derivatives - (Tables)
 12 Months Ended
Dec. 31, 2013
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 December 31, 2013 and December 31, 2012 and the effects of financial derivatives on the consolidated statements of operations for the years ended December 31, 2013 and 2012:

Table 6.1

  
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 (received)/pledged
 
 
—

 
9,844

 
 
 
 
 
 
 
 
Net amount
 
 
$
19,718

 
$
(65,864
)
 
 
 
 
 
 
 
 
  
December 31, 2012
  

 
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
$
950,000

 
$
—

 
$
(58,758
)
 
2.20%
 
0.31%
 
 
 
4.07
No hedge designation:
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest rate swaps:
 
 
 
 
 
 
 
 
 
 
 
 
 
Pay fixed non-callable
805,622

 
357

 
(91,205
)
 
4.83%
 
0.32%
 
 
 
4.14
Receive fixed non-callable
4,135,149

 
30,338

 
(211
)
 
0.33%
 
0.85%
 
 
 
0.74
Receive fixed callable
245,000

 
6

 
(238
)
 
0.15%
 
0.55%
 
 
 
3.89
Basis swaps
609,262

 
499

 
(784
)
 
0.43%
 
0.36%
 
 
 
1.29
Agency forwards
59,035

 
—

 
(58
)
 
 
 
 
 
101.22

 
 
Treasury futures
11,200

 
—

 
(12
)
 
 
 
 
 
129.77

 
 
Credit valuation adjustment
 
 
(27
)
 
584

 
 
 
 
 
 
 
 
Total financial derivatives
$
6,815,268

 
$
31,173

 
$
(150,682
)
 
  
 
  
 
 
 
  
Collateral (received)/pledged
 
 
(1,650
)
 
60,311

 
 
 
 
 
 
 
 
Net amount
 
 
$
29,523

 
$
(90,371
)
 
 
 
 
 
 
 
 
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance [Table Text Block]
Table 6.2

 
Gains/(Losses) on Financial Derivatives and Hedging Activities
  
For the Year Ended December 31,
  
2013
 
2012
 
2011
 
(in thousands)
Fair value hedges:
 
 
 
 
 
Interest rate swaps (1)
$
29,538

 
$
(404
)
 
$
—

Hedged items
(18,230
)
 
6,388

 
—

Gains on hedging activities
11,308

 
5,984

 
—

No hedge designation:
 
 
 
 
 
Interest rate swaps
21,355

 
(24,763
)
 
(86,402
)
Agency forwards
(1,002
)
 
(828
)
 
(5,710
)
Treasury futures
103

 
(129
)
 
(513
)
Credit default swaps
—

 
(93
)
 
(20
)
Gains/(losses) on financial derivatives not designated in hedging relationships
20,456

 
(25,813
)
 
(92,645
)
Gains/(losses) on financial derivatives and hedging activities
$
31,764

 
$
(19,829
)
 
$
(92,645
)
(1)
Included in the assessment of hedge effectiveness at December 31, 2013, but excluded from the amounts in the table, were losses of $11.8 million for the year ended December 31, 2013, attributable to the fair value of the swaps at the inception of the hedging relationship. Accordingly, the amounts recognized as hedge ineffectiveness for the year ended December 31, 2013 were gains of $0.5 million. The comparable amounts at December 31, 2012 were losses of $6.1 million for the year ended December 31, 2012 attributable to the fair value of the swaps at the inception of the hedging relationship and, accordingly, gains of $0.1 million for the the year ended December 31, 2012 attributable to hedge ineffectiveness.


As of December 31, 2013, Farmer Mac had outstanding basis swaps with Zions First National Bank, a related party, with a total notional amount of $29.3 million and a fair value of $(0.2) million, compared to $49.3 million and $(0.7) million, respectively, as of December 31, 2012.  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 years ended December 31, 2013, 2012, and 2011 of $0.5 million, $0.6 million, and $2.1 million, respectively.