Notes Payable

3 Months Ended

Mar. 31, 2020

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 March 31, 2020 and December 31, 2019:

Table 7.1


	March 31, 2020
	Outstanding as of March 31						Average Outstanding During the Quarter
	Amount		Weighted- Average Rate		Amount		Weighted- Average Rate
	(dollars in thousands)
Due within one year:
Discount notes	$	2,598,091	0.82	%	$	2,043,407	1.52	%
Medium-term notes	1,203,723		1.18	%	971,050		1.79	%
Current portion of medium-term notes	7,346,370		1.39	%
Total due within one year	$	11,148,184	1.24	%
Due after one year:
Medium-term notes due in:
Two years	$	3,381,965	1.64	%
Three years	1,588,751		1.90	%
Four years	1,311,362		2.13	%
Five years	1,027,532		1.95	%
Thereafter	2,207,226		2.57	%
Total due after one year	9,516,836		2.00	%
Total	$	20,665,020	1.59	%


	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 medium-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:
Two years	$	3,700,835	2.04	%
Three years	1,594,709		2.15	%
Four years	1,205,276		2.27	%
Five years	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	%

During the three months ended March 31, 2020, 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 the three months ended March 31, 2020 and 2019 was $2.6 billion and $1.9 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 March 31, 2020:

Table 7.2


Debt Callable in 2020 as of March 31, 2020, by Maturity
	Amount		Weighted-Average Rate
	(dollars in thousands)
Maturity:
2021	$	731,715	1.56	%
2022	209,852		1.80	%
2023	49,959		1.34	%
2024	206,716		2.12	%
Thereafter	397,740		2.59	%
Total	$	1,595,982	1.91	%

The following schedule summarizes the earliest interest rate reset date, or debt maturities, of total borrowings outstanding as of March 31, 2020, 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, or Debt Maturities, of Borrowings Outstanding
	Amount		Weighted-Average Rate
	(dollars in thousands)
Debt with interest rate resets, or debt maturities in:
2020	$	11,565,193	1.13	%
2021	3,038,940		1.97	%
2022	1,483,282		2.02	%
2023	1,489,184		2.10	%
2024	945,152		2.04	%
Thereafter	2,143,269		2.67	%
Total	$	20,665,020	1.59	%

During the three months ended March 31, 2020 and 2019, Farmer Mac called $762.4 million and $47.1 million of callable medium-term notes, respectively. The decrease in market interest rates throughout 2019 and continuing into the first quarter 2020 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 March 31, 2020, 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 the three months ended March 31, 2020 or 2019.