Loans and Allowance for Losses and Concentrations of Credit Risk - Loans and Allowance for Losses and Concentrations (Tables)

12 Months Ended

Dec. 31, 2017

Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block]

Loans

Farmer Mac classifies loans as either held for investment or held for sale. Loans held for investment are recorded at the unpaid principal balance, net of unamortized premium or discount and other cost adjustments. Loans held for sale are reported at the lower of cost or fair value determined on a pooled basis. As of December 31, 2017 and 2016, Farmer Mac had no loans held for sale. The following table displays the composition of the loan balances as of December 31, 2017 and 2016:

Table 8.1



	As of December 31, 2017									As of December 31, 2016
	Unsecuritized			In Consolidated Trusts			Total			Unsecuritized			In Consolidated Trusts			Total
	(in thousands)
Farm & Ranch	$	2,798,906		$	1,399,827		$	4,198,733		$	2,381,488		$	1,132,966		$	3,514,454
Rural Utilities	1,076,291			—			1,076,291			999,512			—			999,512
Total unpaid principal balance⁽¹⁾	3,875,197			1,399,827			5,275,024			3,381,000			1,132,966			4,513,966
Unamortized premiums, discounts and other cost basis adjustments	(1,442		)	—			(1,442		)	(1,116		)	—			(1,116		)
Total loans	3,873,755			1,399,827			5,273,582			3,379,884			1,132,966			4,512,850
Allowance for loan losses	(5,493		)	(1,303		)	(6,796		)	(4,437		)	(978		)	(5,415		)
Total loans, net of allowance	$	3,868,262		$	1,398,524		$	5,266,786		$	3,375,447		$	1,131,988		$	4,507,435


⁽¹⁾	Unpaid principal balance is the basis of presentation in disclosures of outstanding balances for Farmer Mac's lines of business.

Allowance for Credit Losses on Financing Receivables [Table Text Block]

Allowance for Losses

Farm & Ranch

Farmer Mac maintains an allowance for losses presented in two components on its consolidated balance sheets: (1) an allowance for loan losses to account for estimated probable losses on loans held, and (2) a reserve for losses to account for estimated probable losses on loans underlying LTSPCs and off-balance sheet Farmer Mac Guaranteed Securities (excluding AgVantage securities). Farmer Mac's total allowance for losses was $8.9 million as of December 31, 2017 and $7.4 million as of December 31, 2016. See Note 12 for more information about off-balance sheet Farmer Mac Guaranteed Securities and LTSPCs.

The following is a summary of the changes in the total allowance for losses for each year in the three-year period ended December 31, 2017:

Table 8.2



	Allowance for Loan Losses			Reserve for Losses			Total Allowance for Losses
	(in thousands)
Balance as of December 31, 2014	$	5,864		$	4,263		$	10,127
Provision for/(release of) losses	2,388			(2,180		)	208
Charge-offs	(3,772		)	—			(3,772		)
Balance as of December 31, 2015	$	4,480		$	2,083		$	6,563
Provision for/(release of) losses	1,065			(63		)	1,002
Charge-offs	(130		)	—			(130		)
Balance as of December 31, 2016	$	5,415		$	2,020		$	7,435
Provision for/(release of) losses	1,708			50			1,758
Charge-offs	(327		)	—			(327		)
Balance as of December 31, 2017	$	6,796		$	2,070		$	8,866

During 2017, Farmer Mac recorded net provisions to its allowance for loan losses and reserve for losses of $1.7 million and $0.1 million, respectively. The net provisions to the allowance for loan losses recorded during 2017 were primarily attributable to (1) an increase in the general allowance due to overall net volume growth in on-balance sheet Farm & Ranch loans, and (2) an increase in the specific allowance for certain impaired on-balance sheet crop and permanent planting loans resulting from both an increase in the outstanding balance of such loans and downgrades in risk ratings on certain of those loans. The net provision to the reserve for losses recorded during 2017 was primarily attributable to an increase in the general reserve due to downgrades in risk ratings on certain unimpaired Agricultural Storage and Processing loans underlying LTSPCs. Farmer Mac recorded $0.3 million of charge-offs to its allowance for loan losses during 2017.

During 2016, Farmer Mac recorded provisions to its allowance for loan losses of $1.1 million and releases to its reserve for losses of $0.1 million. The provisions to the allowance for loan losses recorded during 2016 were attributable to an increase in the general allowance due to overall net volume growth in on-balance sheet Farm & Ranch loans and downgrades in risk ratings for certain loans. The releases to the reserve for losses recorded during the year ended December 31, 2016 were attributable to the release of a specific reserve on an impaired livestock loan underlying an LTSPC that was required to be removed from the LTSPC pool by the originator during 2016. Farmer Mac recorded $0.1 million of charge-offs to its allowance for loan losses during 2016.

During 2015, Farmer Mac recorded provisions to its allowance for loan losses of $2.4 million and releases to its reserve for losses of $2.2 million. The provisions to the allowance for loan losses recorded during 2015 were primarily attributable to the establishment of a specific allowance for two Agricultural Storage and Processing loans that financed one canola facility. Farmer Mac recognized a charge-off of $3.7 million in fourth quarter 2015 on those loans. The provisions to the allowance for losses were offset by the reduction in the specific allowance for a permanent planting loan based on the updated appraised value of the collateral underlying such loan and releases to the general reserve from the reserve for losses due to substantial paydowns of Agricultural Storage and Processing loans underlying LTSPCs due to repayments of these loans at par.

The following tables present the changes in the total allowance for losses for the years ended December 31, 2017, 2016, and 2015 by commodity type:

Table 8.3



	For the Year Ended December 31, 2017
	Crops			Permanent Plantings			Livestock			Part-time Farm			Ag. Storage and Processing		Other			Total
	(in thousands)
Beginning Balance	$	3,365		$	1,723		$	1,375		$	405		$	533	$	34		$	7,435
Provision for/(release of) losses	944			816			(151		)	92			73		(16		)	1,758
Charge-offs	(228		)	(70		)	(13		)	(16		)	—		—			(327		)
Ending Balance	$	4,081		$	2,469		$	1,211		$	481		$	606	$	18		$	8,866



	For the Year Ended December 31, 2016
	Crops		Permanent Plantings		Livestock			Part-time Farm			Ag. Storage and Processing			Other		Total
	(in thousands)
Beginning Balance	$	2,791	$	931	$	1,781		$	408		$	649		$	3	$	6,563
Provision for/(release of) losses	574		792		(406		)	127			(116		)	31		1,002
Charge-offs	—		—		—			(130		)	—			—		(130		)
Ending Balance	$	3,365	$	1,723	$	1,375		$	405		$	533		$	34	$	7,435



	For the Year Ended December 31, 2015
	Crops		Permanent Plantings			Livestock		Part-time Farm			Ag. Storage and Processing			Other			Total
	(in thousands)
Beginning Balance	$	2,519	$	2,159		$	1,423	$	467		$	3,552		$	7		$	10,127
Provision for/(release of) losses	272		(1,228		)	358		52			758			(4		)	208
Charge-offs	—		—			—		(111		)	(3,661		)	—			(3,772		)
Ending Balance	$	2,791	$	931		$	1,781	$	408		$	649		$	3		$	6,563

Schedule of Allowance for Losses by Impairment Method and Commodity [Table Text Block]

The following tables present the unpaid principal balances of loans held and loans underlying LTSPCs and off-balance sheet Farmer Mac Guaranteed Securities (excluding AgVantage securities) and the related total allowance for losses by impairment method and commodity type as of December 31, 2017 and 2016:

Table 8.4



	As of December 31, 2017
	Crops		Permanent Plantings		Livestock		Part-time Farm		Ag. Storage and Processing		Other		Total
	(in thousands)
Ending Balance:
Collectively evaluated for impairment:
On-balance sheet	$	2,344,821	$	794,478	$	635,768	$	269,337	$	13,023	$	9,030	$	4,066,457
Off-balance sheet	1,236,392		532,666		678,642		155,627		45,738		4,981		2,654,046
Total	$	3,581,213	$	1,327,144	$	1,314,410	$	424,964	$	58,761	$	14,011	$	6,720,503
Individually evaluated for impairment:
On-balance sheet	$	67,828	$	38,180	$	17,766	$	7,858	$	—	$	644	$	132,276
Off-balance sheet	8,904		2,239		2,782		806		—		76		14,807
Total	$	76,732	$	40,419	$	20,548	$	8,664	$	—	$	720	$	147,083
Total Farm & Ranch loans:
On-balance sheet	$	2,412,649	$	832,658	$	653,534	$	277,195	$	13,023	$	9,674	$	4,198,733
Off-balance sheet	1,245,296		534,905		681,424		156,433		45,738		5,057		2,668,853
Total	$	3,657,945	$	1,367,563	$	1,334,958	$	433,628	$	58,761	$	14,731	$	6,867,586
Allowance for Losses:
Collectively evaluated for impairment:
On-balance sheet	$	2,104	$	1,101	$	738	$	287	$	44	$	11	$	4,285
Off-balance sheet	546		305		231		48		562		5		1,697
Total	$	2,650	$	1,406	$	969	$	335	$	606	$	16	$	5,982
Individually evaluated for impairment:
On-balance sheet	$	1,207	$	1,006	$	172	$	126	$	—	$	—	$	2,511
Off-balance sheet	224		57		70		20		—		2		373
Total	$	1,431	$	1,063	$	242	$	146	$	—	$	2	$	2,884
Total Farm & Ranch loans:
On-balance sheet	$	3,311	$	2,107	$	910	$	413	$	44	$	11	$	6,796
Off-balance sheet	770		362		301		68		562		7		2,070
Total	$	4,081	$	2,469	$	1,211	$	481	$	606	$	18	$	8,866



	As of December 31, 2016
	Crops		Permanent Plantings		Livestock		Part-time Farm		Ag. Storage and Processing		Other		Total
	(in thousands)
Ending Balance:
Collectively evaluated for impairment:
On-balance sheet	$	2,115,450	$	569,360	$	537,859	$	183,660	$	11,545	$	8,894	$	3,426,768
Off-balance sheet	1,241,851		437,575		752,473		131,889		36,506		4,503		2,604,797
Total	$	3,357,301	$	1,006,935	$	1,290,332	$	315,549	$	48,051	$	13,397	$	6,031,565
Individually evaluated for impairment:
On-balance sheet	$	41,648	$	27,770	$	10,658	$	7,610	$	—	$	—	$	87,686
Off-balance sheet	11,549		2,735		4,854		915		—		—		20,053
Total	$	53,197	$	30,505	$	15,512	$	8,525	$	—	$	—	$	107,739
Total Farm & Ranch loans:
On-balance sheet	$	2,157,098	$	597,130	$	548,517	$	191,270	$	11,545	$	8,894	$	3,514,454
Off-balance sheet	1,253,400		440,310		757,327		132,804		36,506		4,503		2,624,850
Total	$	3,410,498	$	1,037,440	$	1,305,844	$	324,074	$	48,051	$	13,397	$	6,139,304
Allowance for Losses:
Collectively evaluated for impairment:
On-balance sheet	$	2,000	$	652	$	735	$	193	$	22	$	28	$	3,630
Off-balance sheet	420		281		241		54		511		6		1,513
Total	$	2,420	$	933	$	976	$	247	$	533	$	34	$	5,143
Individually evaluated for impairment:
On-balance sheet	$	613	$	770	$	270	$	132	$	—	$	—	$	1,785
Off-balance sheet	332		20		129		26		—		—		507
Total	$	945	$	790	$	399	$	158	$	—	$	—	$	2,292
Total Farm & Ranch loans:
On-balance sheet	$	2,613	$	1,422	$	1,005	$	325	$	22	$	28	$	5,415
Off-balance sheet	752		301		370		80		511		6		2,020
Total	$	3,365	$	1,723	$	1,375	$	405	$	533	$	34	$	7,435

Impaired Financing Receivables [Table Text Block]

The following tables present by commodity type the unpaid principal balances, recorded investment, and specific allowance for losses related to impaired loans and the recorded investment in loans on nonaccrual status as of December 31, 2017 and 2016:

Table 8.5



	As of December 31, 2017
	Crops		Permanent Plantings		Livestock		Part-time Farm		Ag. Storage and Processing		Other		Total
	(in thousands)
Impaired Loans:
With no specific allowance:
Recorded investment	$	14,417	$	3,272	$	11,171	$	1,953	$	—	$	644	$	31,457
Unpaid principal balance	14,418		3,273		11,172		1,953		—		644		31,460
With a specific allowance:
Recorded investment⁽¹⁾	62,309		37,143		9,376		6,710		—		76		115,614
Unpaid principal balance	62,314		37,146		9,376		6,711		—		76		115,623
Associated allowance	1,431		1,063		242		146		—		2		2,884
Total:
Recorded investment	76,726		40,415		20,547		8,663		—		720		147,071
Unpaid principal balance	76,732		40,419		20,548		8,664		—		720		147,083
Associated allowance	1,431		1,063		242		146		—		2		2,884

Recorded investment of loans on nonaccrual status⁽²⁾	$	27,630	$	25,701	$	5,333	$	4,929	$	—	$	—	$	63,593


⁽¹⁾	Impairment analysis was performed in the aggregate in consideration of similar risk characteristics of the assets and historical statistics on $113.2 million (77 percent) of impaired loans as of December 31, 2017, which resulted in a specific allowance of $2.7 million.


⁽²⁾	Includes $15.7 million of loans that are less than 90 days delinquent but which have not met Farmer Mac's performance criteria for returning to accrual status.



	As of December 31, 2016
	Crops		Permanent Plantings		Livestock		Part-time Farm		Ag. Storage and Processing		Other		Total
	(in thousands)
Impaired Loans:
With no specific allowance:
Recorded investment	$	20,761	$	3,683	$	1,054	$	1,970	$	—	$	—	$	27,468
Unpaid principal balance	20,816		3,688		1,055		1,975		—		—		27,534
With a specific allowance:
Recorded investment⁽¹⁾	32,326		26,748		14,322		6,535		—		—		79,931
Unpaid principal balance	32,381		26,817		14,457		6,550		—		—		80,205
Associated allowance	945		790		399		158		—		—		2,292
Total:
Recorded investment	53,087		30,431		15,376		8,505		—		—		107,399
Unpaid principal balance	53,197		30,505		15,512		8,525		—		—		107,739
Associated allowance	945		790		399		158		—		—		2,292

Recorded investment of loans on nonaccrual status⁽²⁾	$	13,405	$	10,785	$	2,696	$	5,256	$	—	$	—	$	32,142


⁽¹⁾	Impairment analysis was performed in the aggregate in consideration of similar risk characteristics of the assets and historical statistics on $76.5 million (71 percent) of impaired loans as of December 31, 2016, which resulted in a specific allowance of $1.6 million.


⁽²⁾	Includes $12.4 million of loans that are less than 90 days delinquent but which have not met Farmer Mac's performance criteria for returning to accrual status.

The following table presents by commodity type the average recorded investment and interest income recognized on impaired loans for the year ended December 31, 2017 and 2016:

Table 8.6



	December 31, 2017
	Crops		Permanent Plantings		Livestock		Part-time Farm		Ag. Storage and Processing		Other		Total
	(in thousands)
For the Year Ended:
Average recorded investment in impaired loans	$	71,154	$	37,597	$	15,913	$	8,135	$	—	$	381	$	133,180
Income recognized on impaired loans	696		530		238		289		—		—		1,753



	December 31, 2016
	Crops		Permanent Plantings		Livestock		Part-time Farm		Ag. Storage and Processing		Other		Total
	(in thousands)
For the Year Ended:
Average recorded investment in impaired loans	$	33,252	$	24,737	$	14,450	$	8,396	$	1,968	$	—	$	82,803
Income recognized on impaired loans	136		866		238		329		—		—		1,569

A modification to the contractual terms of a loan that results in granting a concession to a borrower experiencing financial difficulties is considered a troubled debt restructuring ("TDR"). Farmer Mac has granted a concession when, as a result of the restructuring, it does not expect to collect all amounts due in a timely manner, including interest accrued at the original contract rate. In making its determination of whether a borrower is experiencing financial difficulties, Farmer Mac considers several factors, including whether (1) the borrower has declared or is in the process of declaring bankruptcy, (2) there is substantial doubt as to whether the borrower will continue to be a going concern, and (3) the borrower can obtain funds from other sources at an effective interest rate at or near a current market interest rate for debt with similar risk characteristics. Farmer Mac evaluates TDRs similarly to other impaired loans for purposes of the allowance for losses.

For the year ended December 31, 2017, the recorded investment of loans determined to be troubled debt restructurings ("TDRs") was $0.2 million both before and after restructuring. For the year ended December 31 2016, there were no TDRs. For the year ended December 31, 2015, the recorded investment of loans determined to be TDRs was $1.1 million both before and after restructuring. As of December 31, 2017 and 2016, there were no TDRs identified during the previous 12 months that were in default under the modified terms. The impact of TDRs on Farmer Mac's allowance for loan losses was immaterial for the year ended December 31, 2017 and 2016.

When particular criteria are met, such as the default of the borrower, Farmer Mac becomes entitled to purchase the defaulted loans underlying Farmer Mac Guaranteed Securities (commonly referred to as "removal-of-account" provisions). Farmer Mac records all such defaulted loans at their unpaid principal balance during the period in which Farmer Mac becomes entitled to purchase the loans and, therefore, regains effective control over the transferred loans. In accordance with the terms of all LTSPCs, Farmer Mac acquires loans that are either 90 days or 120 days delinquent (depending on the provisions of the applicable agreement) upon the request of the counterparty. Subsequent to the purchase, these defaulted loans are treated as nonaccrual loans and, therefore, interest is accounted for on the cash basis. Any decreases in expected cash flows are recognized as impairment.

Schedule of Certain Loans Acquired in Transfer Acquired During Period [Table Text Block]

The following tables present information related to Farmer Mac's acquisition of defaulted loans for the years ended December 31, 2017, 2016, and 2015 and the outstanding balances and carrying amounts of all such loans as of December 31, 2017 and 2016:

Table 8.7



	For the Year Ended December 31,
	2017		2016		2015
	($ in thousands)
Unpaid principal balance at acquisition date:
Loans underlying LTSPCs	$	311	$	398	$	13,500
Loans underlying off-balance sheet Farmer Mac Guaranteed Securities (excluding AgVantage securities)	5,670		2,118		3,407
Total unpaid principal balance at acquisition date	5,981		2,516		16,907
Contractually required payments receivable	6,018		2,544		17,036
Impairment recognized subsequent to acquisition	60		208		3,772
Recovery/release of allowance for all outstanding acquired defaulted loans	171		67		1,019

Number of defaulted loans purchased	13		8		6



	As of
	December 31, 2017		December 31, 2016
	(in thousands)
Outstanding balance	$	18,866	$	14,669
Carrying amount	17,691		13,069

Past Due Financing Receivables [Table Text Block]

Net credit losses and 90-day delinquencies as of and for the periods indicated for loans held and loans underlying off-balance sheet securities representing interests in pools of eligible Farm & Ranch loans ("Farm & Ranch Guaranteed Securities") and LTSPCs are presented in the table below. As of December 31, 2017, there were no delinquencies and no probable losses inherent in Farmer Mac's Rural Utilities loan portfolio and Farmer Mac had not experienced credit losses on any Rural Utilities loans.

Table 8.8



	90-Day Delinquencies⁽¹⁾				Net Credit (Recoveries)/Losses
	As of				For the Year Ended
	December 31, 2017		December 31, 2016		December 31, 2017			December 31, 2016		December 31, 2015
	(in thousands)
On-balance sheet assets:
Farm & Ranch:
Loans	$	47,881	$	19,757	$	(1,397	)	$	154	$	3,853
Total on-balance sheet	$	47,881	$	19,757	$	(1,397	)	$	154	$	3,853
Off-balance sheet assets:
Farm & Ranch:
LTSPCs	$	563	$	1,281	$	—		$	—	$	—
Total off-balance sheet	$	563	$	1,281	$	—		$	—	$	—
Total	$	48,444	$	21,038	$	(1,397	)	$	154	$	3,853


⁽¹⁾	Includes loans and loans underlying off-balance sheet Farm & Ranch Guaranteed Securities and LTSPCs that are 90 days or more past due, in foreclosure, or in bankruptcy with at least one missed payment, excluding loans performing under either their original loan terms or a court-approved bankruptcy plan.

Of the $47.9 million of on-balance sheet loans reported as 90-day delinquencies as of December 31, 2017, $0.3 million were loans subject to "removal-of-account" provisions. Of the $19.8 million of on-balance sheet loans reported as 90-day delinquencies as of December 31, 2016, $0.1 million were loans subject to "removal-of-account" provisions.

Financing Receivable Credit Quality Indicators [Table Text Block]

Credit Quality Indicators

The following tables present credit quality indicators related to Farm & Ranch loans held and loans underlying LTSPCs and off-balance sheet Farm & Ranch Guaranteed Securities as of December 31, 2017 and 2016:

Table 8.9



	As of December 31, 2017
	Crops		Permanent Plantings		Livestock		Part-time Farm		Ag. Storage and Processing		Other		Total
	(in thousands)
Credit risk profile by internally assigned grade⁽¹⁾
On-balance sheet:
Acceptable	$	2,274,912	$	771,600	$	617,527	$	260,854	$	13,023	$	9,030	$	3,946,946
Special mention⁽²⁾	70,063		22,878		18,405		8,483		—		—		119,829
Substandard⁽³⁾	67,674		38,180		17,602		7,858		—		644		131,958
Total on-balance sheet	$	2,412,649	$	832,658	$	653,534	$	277,195	$	13,023	$	9,674	$	4,198,733
Off-Balance Sheet:
Acceptable	$	1,132,196	$	478,573	$	634,633	$	150,906	$	42,723	$	4,294	$	2,443,325
Special mention⁽²⁾	76,778		26,134		31,451		1,647		—		169		136,179
Substandard⁽³⁾	36,322		30,198		15,340		3,880		3,015		594		89,349
Total off-balance sheet	$	1,245,296	$	534,905	$	681,424	$	156,433	$	45,738	$	5,057	$	2,668,853
Total Ending Balance:
Acceptable	$	3,407,108	$	1,250,173	$	1,252,160	$	411,760	$	55,746	$	13,324	$	6,390,271
Special mention⁽²⁾	146,841		49,012		49,856		10,130		—		169		256,008
Substandard⁽³⁾	103,996		68,378		32,942		11,738		3,015		1,238		221,307
Total	$	3,657,945	$	1,367,563	$	1,334,958	$	433,628	$	58,761	$	14,731	$	6,867,586

Commodity analysis of past due loans⁽¹⁾
On-balance sheet	$	21,702	$	18,833	$	3,835	$	3,511	$	—	$	—	$	47,881
Off-balance sheet	151		—		—		412		—		—		563
90 days or more past due	$	21,853	$	18,833	$	3,835	$	3,923	$	—	$	—	$	48,444


⁽¹⁾	Amounts represent unpaid principal balance of risk-rated loans, which is the basis Farmer Mac uses to analyze its portfolio, and recorded investment of past due loans.


⁽²⁾	Assets in the "Special mention" category generally have potential weaknesses due to performance issues but are currently considered to be adequately secured.


⁽³⁾	Substandard assets have a well-defined weakness or weaknesses and there is a distinct possibility that some loss will be sustained if deficiencies are not corrected.



	As of December 31, 2016
	Crops		Permanent Plantings		Livestock		Part-time Farm		Ag. Storage and Processing		Other		Total
	(in thousands)
Credit risk profile by internally assigned grade⁽¹⁾
On-balance sheet:
Acceptable	$	2,080,227	$	568,221	$	504,784	$	179,288	$	11,545	$	8,894	$	3,352,959
Special mention⁽²⁾	35,223		1,139		33,075		4,372		—		—		73,809
Substandard⁽³⁾	41,648		27,770		10,658		7,610		—		—		87,686
Total on-balance sheet	$	2,157,098	$	597,130	$	548,517	$	191,270	$	11,545	$	8,894	$	3,514,454
Off-Balance Sheet
Acceptable	$	1,201,144	$	403,256	$	724,056	$	125,440	$	34,537	$	3,916	$	2,492,349
Special mention⁽²⁾	20,422		16,881		15,341		2,344		—		6		54,994
Substandard⁽³⁾	31,834		20,173		17,930		5,020		1,969		581		77,507
Total off-balance sheet	$	1,253,400	$	440,310	$	757,327	$	132,804	$	36,506	$	4,503	$	2,624,850
Total Ending Balance:
Acceptable	$	3,281,371	$	971,477	$	1,228,840	$	304,728	$	46,082	$	12,810	$	5,845,308
Special mention⁽²⁾	55,645		18,020		48,416		6,716		—		6		128,803
Substandard⁽³⁾	73,482		47,943		28,588		12,630		1,969		581		165,193
Total	$	3,410,498	$	1,037,440	$	1,305,844	$	324,074	$	48,051	$	13,397	$	6,139,304

Commodity analysis of past due loans⁽¹⁾
On-balance sheet	$	13,449	$	3,245	$	669	$	2,394	$	—	$	—	$	19,757
Off-balance sheet	373		407		38		463		—		—		1,281
90 days or more past due	$	13,822	$	3,652	$	707	$	2,857	$	—	$	—	$	21,038


⁽¹⁾	Amounts represent unpaid principal balance of risk-rated loans, which is the basis Farmer Mac uses to analyze its portfolio, and recorded investment of past due loans.


⁽²⁾	Assets in the "Special mention" category generally have potential weaknesses due to performance issues but are currently considered to be adequately secured.


⁽³⁾	Substandard assets have a well-defined weakness or weaknesses and there is a distinct possibility that some loss will be sustained if deficiencies are not corrected.

Schedules of Concentration of Risk, by Risk Factor [Table Text Block]

Concentrations of Credit Risk

The following table sets forth the geographic and commodity/collateral diversification, the range of original loan-to-value ratios, and the range in the size of borrower exposure for all Farm & Ranch loans held and loans underlying off-balance sheet Farm & Ranch Guaranteed Securities and LTSPCs as of December 31, 2017 and 2016:

Table 8.10



	As of
	December 31, 2017		December 31, 2016
	(in thousands)
By commodity/collateral type:
Crops	$	3,657,945	$	3,410,498
Permanent plantings	1,367,563		1,037,440
Livestock	1,334,958		1,305,844
Part-time farm	433,628		324,074
Ag. Storage and Processing	58,761		48,051
Other	14,731		13,397
Total	$	6,867,586	$	6,139,304
By geographic region⁽¹⁾:
Northwest	$	740,991	$	657,403
Southwest	2,093,213		1,791,745
Mid-North	2,244,094		2,104,867
Mid-South	908,603		837,121
Northeast	296,264		229,679
Southeast	584,421		518,489
Total	$	6,867,586	$	6,139,304
By original loan-to-value ratio⁽²⁾:
0.00% to 40.00%	$	1,322,422	$	1,220,432
40.01% to 50.00%	1,733,671		1,466,047
50.01% to 60.00%	2,385,605		2,078,099
60.01% to 70.00%	1,150,914		1,167,395
70.01% to 80.00%	248,799		191,664
80.01% to 90.00%	26,175		15,667
Total	$	6,867,586	$	6,139,304
By size of borrower exposure⁽³⁾:
Less than $1,000,000	$	2,379,596	$	2,195,103
$1,000,000 to $4,999,999	2,627,617		2,398,843
$5,000,000 to $9,999,999	867,574		782,171
$10,000,000 to $24,999,999	584,896		469,681
$25,000,000 to $50,000,000	407,903		293,506
Total	$	6,867,586	$	6,139,304


⁽¹⁾	Geographic regions: Northwest (AK, ID, MT, OR, WA, WY); Southwest (AZ, CA, CO, HI, NM, NV, UT); Mid-North (IA, IL, IN, MI, MN, NE, ND, SD, WI); Mid-South (AR, KS, LA, MO, OK, TX); Northeast (CT, DE, KY, MA, MD, ME, NH, NJ, NY, OH, PA, RI, VA, VT, WV); Southeast (AL, FL, GA, MS, NC, SC, TN).

⁽²⁾

As of second quarter 2017, Farmer Mac revised its calculation of the original loan-to-value ratio of a loan to combine for any cross-collateralized loans: (i) the original loan principal balance amounts in the numerator and (ii) the original appraised property values in the denominator. In previous periods, the ratio was calculated on a loan-by-loan basis without considering the effects of any cross-collateralization. Prior period information has been reclassified to conform to the current period calculation and presentation.


⁽³⁾	Includes multiple loans to the same borrower or borrower-related entities.

The original loan-to-value ratio is calculated by dividing the loan principal balance at the time of guarantee, purchase, or commitment by the appraised value at the date of loan origination or, when available, the updated appraised value at the time of guarantee, purchase, or commitment. Current loan-to-value ratios may be higher or lower than the original loan-to-value ratios.