Notes Payable

12 Months Ended

Dec. 31, 2019

NOTES PAYABLEFarmer Mac's borrowings consist of discount notes and medium-term notes, both of which are unsecured general obligations of Farmer Mac. Discount notes generally have original maturities of 1.0 year or less, whereas medium-term notes generally have maturities of 0.5 years to 15.0 years.

The following tables set forth information related to Farmer Mac's borrowings as of December 31, 2019 and 2018:

Table 7.1


	December 31, 2019
	Outstanding as of December 31						Average Outstanding During the Year
	Amount		Weighted- Average Rate		Amount		Weighted- Average Rate
	(dollars in thousands)
Due within one year:
Discount notes	$	2,194,177	1.72	%	$	1,977,214	2.25	%
Medium-term notes	1,152,770		1.98	%	1,780,517		2.33	%
Current portion of long-term notes	6,672,135		1.85	%
Total due within one year	$	10,019,082	1.84	%
Due after one year:
Medium-term notes due in:
2021	$	3,700,835	2.04	%
2022	1,594,709		2.15	%
2023	1,205,276		2.27	%
2024	760,887		2.25	%
Thereafter	1,817,859		2.89	%
Total due after one year	9,079,566		2.28	%
Total	$	19,098,648	2.05	%


	December 31, 2018
	Outstanding as of December 31						Average Outstanding During the Year
	Amount		Weighted- Average Rate		Amount		Weighted- Average Rate
	(dollars in thousands)
Due within one year:
Discount notes	$	1,586,385	2.35	%	$	1,432,470	1.83	%
Medium-term notes	1,826,380		2.29	%	1,977,445		1.83	%
Current portion of long-term notes	4,344,285		1.93	%
Total due within one year	$	7,757,050	2.10	%
Due after one year:
Medium-term notes due in:
2020	$	3,090,405	2.11	%
2021	2,220,651		2.41	%
2022	859,470		2.19	%
2023	881,738		2.88	%
Thereafter	1,434,383		3.34	%
Total due after one year	8,486,647		2.48	%
Total	$	16,243,697	2.30	%

During 2019, the Company increased its use of short-term funding in order to fund the growth of short-term assets in its liquidity portfolio. The maximum amount of Farmer Mac's discount notes outstanding at any month end during each of the years ended December 31, 2019 and 2018 was $2.3 billion and $1.6 billion, respectively.

Callable medium-term notes give Farmer Mac the option to redeem the debt at par value on a specified call date or at any time on or after a specified call date. The following table summarizes by maturity date the amounts and costs for Farmer Mac debt callable in 2020 as of December 31, 2019:

Table 7.2


Debt Callable in 2020 as of December 31, 2019
	Amount		Weighted-Average Rate
	(dollars in thousands)
Maturity:
2021	$	518,746	2.03	%
2022	289,742		2.30	%
2023	22,978		1.93	%
2024	191,688		2.32	%
Thereafter	374,064		2.80	%
Total	$	1,397,218	2.33	%

The following schedule summarizes the earliest interest rate reset date of total borrowings outstanding as of December 31, 2019, including callable and non-callable medium-term notes, assuming callable notes are redeemed at the initial call date:

Table 7.3


	Earliest Interest Rate Reset Date of Borrowings Outstanding
	Amount		Weighted-Average Rate
	(dollars in thousands)
Debt with interest rate resets in:
2020	$	11,842,948	1.85	%
2021	2,399,892		2.18	%
2022	1,463,737		2.16	%
2023	1,160,300		2.28	%
2024	727,900		2.26	%
Thereafter	1,503,871		3.03	%
Total	$	19,098,648	2.05	%

During 2019 and 2018, Farmer Mac called $1.5 billion and none of callable medium-term notes, respectively. The decrease in market interest rates throughout 2019 led to an increase in called medium-term notes compared to the prior year.

Authority to Borrow from the U.S. Treasury

Farmer Mac's statutory charter authorizes it to borrow up to $1.5 billion from the U.S. Treasury through the issuance of debt obligations to the U.S. Treasury. Any funds borrowed from the U.S. Treasury may be used solely for the purpose of fulfilling Farmer Mac's guarantee obligations. Any debt obligations issued by Farmer Mac under this authority would bear interest at a rate determined by the U.S. Treasury, taking into consideration the average rate on outstanding marketable obligations of the United States as of the last day of the last calendar month ending before the date of the purchase of the obligations from Farmer Mac. The charter requires Farmer Mac to repurchase any of its debt obligations held by the U.S. Treasury

within a reasonable time. As of December 31, 2019, Farmer Mac had not used this borrowing authority and does not expect to use this borrowing authority in the future.

Gains on Repurchase of Outstanding Debt

No outstanding debt repurchases were made in 2019, 2018, or 2017.