RELATED PARTY TRANSACTIONS

Farmer Mac considers an entity to be a related party if (1) the entity holds at least 5 percent of a class of Farmer Mac voting common stock or (2) the institution has an affiliation with a Farmer Mac director and conducts material business with Farmer Mac. As provided by Farmer Mac's statutory charter, only banks, insurance companies, and other financial institutions or similar entities may hold Farmer Mac's Class A voting common stock and only institutions of the Farm Credit System may hold Farmer Mac's Class B voting common stock. Farmer Mac's statutory charter also provides that Class A stockholders elect five members of Farmer Mac's 15-member board of directors and that Class B stockholders elect five members of the board of directors. Additionally, in order to participate in the Farm & Ranch program, a financial institution must own a requisite amount of Farmer Mac's common stock, based on the size and type of institution. As a result of these requirements, Farmer Mac conducts business with related parties in the normal course of Farmer Mac's business. All related party transactions were conducted with terms and conditions comparable to those available to any other participant in Farmer Mac's lines of business not related to Farmer Mac.

Zions First National Bank:

Farmer Mac considers Zions First National Bank and its affiliates ("Zions") a related party due to the ownership by Zions of approximately 31.2 percent of Class A voting common stock. The following transactions occurred between Farmer Mac and Zions during 2017, 2016, and 2015:

Table 3.1



	For the Year Ended December 31,
	2017		2016		2015
	(in thousands)
Unpaid Principal Balance:
Purchases:
Loans	$	126,449	$	153,140	$	178,890
USDA Securities	20,368		16,600		13,718
Sales of Farmer Mac Guaranteed Securities	128,924		273,586		255,338

The purchases of loans from Zions under the Farm & Ranch line of business represented approximately 11.2 percent, 15.9 percent, and 23.9 percent of Farm & Ranch loan purchases for the years ended December 31, 2017, 2016, and 2015, respectively, and 7.5 percent, 11.2 percent and 15.2 percent, respectively, of total new Farm & Ranch business volume. The purchases of USDA Securities from Zions under the USDA Guarantees line of business represented approximately 3.8 percent, 3.4 percent, and 3.6 percent of purchases in that line of business for the years ended December 31, 2017, 2016, and 2015, respectively. Outstanding Farm & Ranch loans, USDA Securities, and AgVantage securities purchased from Zions represented 5.0 percent and 5.3 percent, respectively, of Farmer Mac's outstanding business volume as of December 31, 2017 and 2016.

Zions retained servicing fees of $11.5 million, $9.9 million, and $9.3 million in 2017, 2016, and 2015, respectively, for its work as a Farmer Mac servicer.

National Rural Utilities Cooperative Financial Corporation:

Farmer Mac considers the National Rural Utilities Cooperative Financial Corporation ("CFC") a related party due to its ownership of approximately 7.9 percent of Class A voting common stock. The following transactions occurred between Farmer Mac and CFC during 2017, 2016, and 2015:

Table 3.2



Farmer Mac Loan Purchases and Guarantees
	For the Year Ended December 31,
	2017		2016		2015
	(in thousands)
Unpaid Principal Balance:
Loans	$	137,341	$	50,491	$	108,337
On-balance sheet AgVantage Securities	350,000		250,000		380,000
Off-balance sheet revolving floating rate AgVantage facility	—		—		300,000
LTSPCs	—		441,404		522,262
Total purchases and guarantees	$	487,341	$	741,895	$	1,310,599

The transactions with CFC represented 100 percent of Farmer Mac's volume of loan purchases and LTSPC transactions under the Rural Utilities line of business for 2017, 2016, and 2015, represented 14.7 percent, 11.9 percent, and 65.2 percent of AgVantage securities volume under the Institutional Credit line of business for 2017, 2016, and 2015, respectively, and represented 10.3 percent, 16.7 percent, and 40.6 percent of total purchases, guarantees, and LTSPCs for 2017, 2016, and 2015, respectively. Of Farmer Mac's total outstanding business volume as of December 31, 2017 and 2016, Rural Utilities loans, loans under LTSPCs, and AgVantage securities issued by CFC represented 24.6 percent and 25.7 percent, respectively. For the years ended December 31, 2017, 2016, and 2015, Farmer Mac earned guarantee fees of $0.1 million.

Farmer Mac had interest receivable of $5.2 million and $3.2 million as of December 31, 2017 and 2016, respectively, and earned interest income of $43.9 million, $27.6 million, and $15.9 million during 2017, 2016, and 2015, respectively, related to its AgVantage transactions with CFC.

As of both December 31, 2017 and 2016 Farmer Mac had $0.2 million of commitment fees receivable from CFC and earned commitment fees of $2.2 million, $2.0 million, and $0.5 million, respectively for 2017, 2016, and 2015.

CFC retained servicing fees of $3.5 million, $3.3 million and $3.3 million in 2017, 2016, and 2015, respectively, for its work as a Farmer Mac central servicer.

AgFirst Farm Credit Bank:

Farmer Mac has a related party relationship with AgFirst Farm Credit Bank ("AgFirst") resulting from AgFirst being a holder of approximately 16.8 percent of Farmer Mac Class B voting common stock.

AgFirst entered into $40.0 million, $36.4 million and $28.5 million of LTSPC transactions in 2017, 2016, and 2015, respectively, and the aggregate balance of LTSPCs outstanding as of December 31, 2017 and 2016 was $353.8 million and $331.3 million, respectively. Farmer Mac received from AgFirst $1.1 million, $1.1 million, and $1.2 million in commitment fees in 2017, 2016, and 2015, respectively, and had $0.1 million of commitment fees receivable as of both December 31, 2017 and 2016.

AgFirst owns certain securities backed by rural housing loans. Farmer Mac guarantees the last ten percent of losses (based on the original principal balance at the time of pooling) from each loan in the pool backing those securities. As of December 31, 2017 and 2016, the outstanding balance of those securities owned by AgFirst was $11.5 million and $19.7 million, respectively. Farmer Mac received guarantee fees of $38,000, $45,000, and $0.1 million in 2017, 2016, and 2015, respectively, on those securities.

Farm Credit Bank of Texas:

Farmer Mac has a related party relationship with Farm Credit Bank of Texas resulting from the bank being a holder of approximately 7.7 percent of Farmer Mac Class B voting common stock and because a member of Farmer Mac's board of directors has an affiliation with that entity. Farmer Mac received from Farm Credit Bank of Texas commitment fees of $1.0 million, $1.1 million, and $0.7 million in 2017, 2016, and 2015, respectively. The aggregate amount of LTSPCs outstanding with Farm Credit Bank of Texas as of December 31, 2017 and 2016 was $250.3 million and $237.9 million, respectively. In 2017, 2016, and 2015, Farm Credit Bank of Texas retained $0.2 million, $0.3 million, and $0.3 million, respectively, in servicing fees for its work as a Farmer Mac central servicer.

Other Related Party Transactions:

Farmer Mac purchased $28.5 million, $24.7 million, and $21.1 million in loans from First Dakota National Bank in 2017, 2016, and 2015, respectively. Farmer Mac entered into $0.4 million, $0.0 million, and $7.8 million of new LTSPCs in 2017, 2016, and 2015, respectively, with First Dakota National Bank. First Dakota National Bank retained servicing fees of $1.2 million, $1.1 million, and $1.0 million in 2017, 2016, and 2015, respectively, for its work as a Farmer Mac servicer. Farmer Mac purchased $5.4 million, $1.3 million, and $2.1 million in USDA Securities from Bath State Bank in 2017, 2016, and 2015, respectively. These institutions had a related party relationship with Farmer Mac because a member of Farmer Mac's board of directors is affiliated with each of those entities.

Farmer Mac owned $70.0 million of subordinated debt issued by CoBank as of December 31, 2016. During 2017, the subordinated debt was called and redeemed by CoBank. Farmer Mac has a related party relationship with CoBank because CoBank is a major holder (32.6 percent) of Farmer Mac Class B voting common stock and because a member of Farmer Mac's board of directors has an affiliation with that entity.