Off-Balance Sheet Guarantees and Long Term Standby Purchase Commitments - Off-Balance Sheet Guarantees and Long-Term Standby Purchase Commitments (Tables)

12 Months Ended

Dec. 31, 2015

Commitments and Contingencies Disclosure [Abstract]

Schedule of Guarantee Obligations Activity [Table Text Block]

The contractual terms of Farmer Mac's guarantees range from less than 1 year to 30 years. However, the actual term of each guarantee may be significantly less than the contractual term based on the prepayment characteristics of the related agricultural real estate mortgage loans. Farmer Mac's maximum potential exposure under these guarantees is comprised of the unpaid principal balance of the underlying agricultural real estate mortgage loans. Guarantees issued or modified on or after January 1, 2003 are recorded in the consolidated balance sheets. Farmer Mac's maximum potential exposure was $4.5 billion and $3.8 billion as of December 31, 2015 and 2014, respectively. Farmer Mac's maximum potential exposure for guarantees issued prior to January 1, 2003, which are not recorded on the consolidated balance sheets, was $56.2 million and $70.6 million as of December 31, 2015 and 2014, respectively. The maximum exposure from these guarantees is not representative of the actual loss Farmer Mac is likely to incur, based on historical loss experience. In the event Farmer Mac was required to make payments under its guarantees, Farmer Mac would have the right to enforce the terms of the loans, and in the event of default, would have access to the underlying collateral. For information on Farmer Mac's methodology for determining the reserve for losses for its financial guarantees, see Note 2(j) and Note 8. The following table presents changes in Farmer Mac's guarantee and commitment obligations in the consolidated balance sheets for the years ended December 31, 2015, 2014, and 2013:

Table 12.1



	For the Year Ended December 31,
	2015			2014			2013
	(in thousands)
Beginning balance, January 1	$	37,925		$	39,667		$	37,803
Additions to the guarantee and commitment obligation⁽¹⁾	8,207			4,966			8,414
Amortization of the guarantee and commitment obligation	(7,523		)	(6,708		)	(6,550		)
Ending balance, December 31	$	38,609		$	37,925		$	39,667


⁽¹⁾	Represents the fair value of the guarantee and commitment obligation at inception.

Schedule of Guarantor Obligations [Table Text Block]

The following table presents the maximum principal amount of potential undiscounted future payments that Farmer Mac could be required to make under all off-balance sheet Farmer Mac Guaranteed Securities as of December 31, 2015 and 2014, not including offsets provided by any recourse provisions, recoveries from third parties, or collateral for the underlying loans:

Table 12.2



Outstanding Balance of Off-Balance Sheet Farmer Mac Guaranteed Securities
	As of December 31, 2015		As of December 31, 2014
	(in thousands)
Farm & Ranch:
Guaranteed Securities	$	514,051	$	636,086
USDA Guarantees:
Farmer Mac Guaranteed USDA Securities	10,272		13,978
Institutional Credit:
AgVantage Securities	984,871		986,528
Revolving floating rate AgVantage facility⁽¹⁾	300,000		—
Total off-balance sheet Farmer Mac Guaranteed Securities	$	1,809,194	$	1,636,592

Schedule of Cash Flows Related To Transfer of Securitizations [Table Text Block]

If Farmer Mac repurchases a loan that is collateral for a Farmer Mac Guaranteed Security, Farmer Mac would have the right to enforce the terms of the loan, and in the event of a default, would have access to the underlying collateral. Farmer Mac typically recovers its investment in the defaulted loans purchased either through borrower payments, loan payoffs, payments by third parties, or foreclosure and sale of the property securing the loans.

Farmer Mac has recourse to the USDA for any amounts advanced for the timely payment of principal and interest on Farmer Mac Guaranteed USDA Securities. That recourse is the USDA guarantee, a full faith and credit obligation of the United States that becomes enforceable if a lender fails to repurchase the USDA-guaranteed portion from its owner within 30 days after written demand from the owner when (a) the borrower under the guaranteed loan is in default not less than 60 days in the payment of any principal or interest due on the USDA-guaranteed portion, or (b) the lender has failed to remit to the owner the payment made by the borrower on the USDA-guaranteed portion or any related loan subsidy within 30 days after the lender's receipt of the payment.

Eligible loans and other eligible assets may be placed into trusts that are used as vehicles for the securitization of the transferred assets and the Farmer Mac-guaranteed beneficial interests in the trusts are sold to investors. The following table summarizes the significant cash flows received from and paid to trusts used for Farmer Mac securitizations:

Table 12.3



	For the Year Ended December 31,
	2015			2014		2013
	(in thousands)
Proceeds from new securitizations	$	336,913		$	175,754	$	150,417
Guarantee fees received	4,028			4,612		5,182
Purchases of assets from the trusts	(3,407		)	—		(6,667		)

Farmer Mac has recorded a liability for its obligation to stand ready under the guarantee in the guarantee and commitment obligation on the consolidated balance sheets. This liability approximated $8.3 million as of December 31, 2015 and $11.1 million as of December 31, 2014. As of December 31, 2015 and 2014, the weighted-average remaining maturity of all loans underlying off-balance sheet Farmer Mac Guaranteed Securities, excluding AgVantage securities, was 11.3 years and 12.0 years, respectively. As of December 31, 2015 and December 31, 2014, the weighted-average remaining maturity of the off-balance sheet AgVantage securities was 1.7 years and 2.4 years, respectively.

Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block]

The future minimum lease payments under Farmer Mac's non-cancellable leases for its office space and other contractual obligations as of December 31, 2015 are as follows:

Table 12.4



	Future Minimum Lease Payments		Other Contractual Obligations
	(in thousands)
2016	$	1,392	$	996
2017	1,412		356
2018	1,388		—
2019	1,389		—
2020	1,423		—
Thereafter	5,527		—
Total	$	12,531	$	1,352

Other contractual obligations in the table above include minimum amounts due under non-cancellable agreements to purchase goods or services that are enforceable and legally binding and specify all significant terms. These agreements include, among others, agreements for the provision of consulting services, information technology support, equipment maintenance, and financial analysis software and services. The amounts actually paid under these agreements will likely be higher due to the variable components of some of these agreements under which the ultimate obligation owed is determined by reference to actual usage or hours worked.