RELATED PARTY TRANSACTIONS

Farmer Mac considers an entity to be a related party if (1) the entity holds at least 5% 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. Farmer Mac generally requires financial institutions to own a requisite amount of common stock , based on the size and type of institution, to participate in the Farm & Ranch line of business. 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% of Farmer Mac's Class A voting common stock. The following transactions occurred between Farmer Mac and Zions during 2018, 2017, and 2016:

Table 3.1



	For the Year Ended December 31,
	2018		2017		2016
	(in thousands)
Unpaid Principal Balance:
Purchases:
Loans	$	114,719	$	126,449	$	153,140
USDA Securities	19,120		20,368		16,600
Sales of Farmer Mac Guaranteed Securities	68,721		128,924		273,586

The purchases of loans from Zions under the Farm & Ranch line of business represented approximately 11.9%, 11.2%, and 15.9% of Farm & Ranch loan purchases for the years ended December 31, 2018, 2017, and 2016, respectively, and 8.2%, 7.5% and 11.2%, respectively, of total new Farm & Ranch business volume. The purchases of USDA Securities from Zions under the USDA Guarantees line of business represented approximately 4.2%, 3.8%, and 3.4% of purchases in that line of business for the years ended December 31, 2018, 2017, and 2016, respectively. Outstanding Farm & Ranch loans, USDA Securities, and AgVantage securities purchased from Zions represented 4.7% and 5.0%, respectively, of Farmer Mac's outstanding business volume as of December 31, 2018 and 2017.

Zions retained servicing fees of $11.6 million, $11.5 million, and $9.9 million in 2018, 2017, and 2016, 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 because of its ownership of approximately 7.9% of Farmer Mac's Class A voting common stock. The following transactions occurred between Farmer Mac and CFC during 2018, 2017, and 2016:

Table 3.2



Farmer Mac Loan Purchases and Guarantees
	For the Year Ended December 31,
	2018		2017		2016
	(in thousands)
Unpaid Principal Balance:
Loans	$	11,645	$	137,341	$	50,491
On-balance sheet AgVantage Securities	675,000		350,000		250,000
Off-balance sheet revolving floating rate AgVantage facility	300,000		—		—
LTSPCs	—		—		441,404
Total purchases and guarantees	$	986,645	$	487,341	$	741,895

The transactions with CFC represented 100% of Farmer Mac's volume of loan purchases and LTSPC transactions under the Rural Utilities line of business for 2018, 2017, and 2016, and represented 29.5%, 14.7%, and 11.9% of AgVantage securities volume under the Institutional Credit line of business for 2018, 2017, and 2016, respectively, and represented 19.1%, 10.3%, and 16.7% of total purchases, guarantees, and LTSPCs for 2018, 2017, and 2016, respectively. Of Farmer Mac's total outstanding business volume as of December 31, 2018 and 2017, Rural Utilities loans, loans under LTSPCs, and AgVantage securities issued by CFC represented 23.6% and 24.6%, respectively. For the years ended December 31, 2018, 2017, and 2016, Farmer Mac earned guarantee fees of $0.1 million.

Farmer Mac had interest receivable of $9.4 million and $5.2 million as of December 31, 2018 and 2017, respectively, and earned interest income of $76.8 million, $43.9 million, and $27.6 million during 2018, 2017, and 2016, respectively, related to its AgVantage transactions with CFC.

As of December 31, 2018 and 2017, Farmer Mac had $0.1 million and $0.2 million, respectively, of commitment fees receivable from CFC and earned commitment fees of $1.9 million, $2.2 million, and $2.0 million, respectively for 2018, 2017, and 2016.

CFC retained servicing fees of $3.6 million, $3.5 million and $3.3 million in 2018, 2017, and 2016, 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% of Farmer Mac's Class B voting common stock.

AgFirst entered into $26.6 million, $40.0 million and $36.4 million of LTSPC transactions in 2018, 2017, and 2016, respectively, and the aggregate balance of LTSPCs outstanding as of December 31, 2018 and 2017 was $340.5 million and $353.8 million, respectively. Farmer Mac received from AgFirst $1.2 million, $1.1 million, and $1.1 million in commitment fees in 2018, 2017, and 2016, respectively, and had $0.1 million of commitment fees receivable as of both December 31, 2018 and 2017.

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, 2018 and 2017, the outstanding balance of those securities owned by AgFirst was $8.6 million and $11.5 million, respectively. Farmer Mac received guarantee fees of $33,000, $38,000, and $45,000 in 2018, 2017, and 2016, 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% 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, $1.0 million, and $1.1 million in 2018, 2017, and 2016, respectively. The aggregate amount of LTSPCs outstanding with Farm Credit Bank of Texas as of December 31, 2018 and 2017 was $226.5 million and $250.3 million, respectively. In 2018, 2017, and 2016, Farm Credit Bank of Texas retained $0.2 million, $0.2 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 $39.5 million, $28.5 million, and $24.7 million in loans from First Dakota National Bank in 2018, 2017, and 2016, respectively. Farmer Mac entered into $3.0 million, $0.4 million, and $0.0 million of new USDA Securities in 2018, 2017, and 2016, respectively, with First Dakota National Bank. First Dakota National Bank retained servicing fees of $1.4 million, $1.2 million, and $1.1 million in 2018, 2017, and 2016, respectively, for its work as a Farmer Mac servicer. Farmer Mac purchased $2.0 million, $5.4 million, and $1.3 million in USDA Securities from Bath State Bank in 2018, 2017, and 2016, 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 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%) 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.