10-Q

As filed with the Securities and Exchange Commission on November 9, 2020

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

Form 10-Q

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)

OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2020

Commission File Number 001-14951 

FEDERAL AGRICULTURAL MORTGAGE CORPORATION

(Exact name of registrant as specified in its charter)

Federally chartered instrumentality of the United States		52-1578738
(State or other jurisdiction of incorporation or organization)		(I.R.S. employer identification number)
1999 K Street, N.W., 4th Floor,
Washington,	DC	20006
(Address of principal executive offices)		(Zip code)

(202)	872-7700
(Registrant's telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading symbol	Exchange on which registered
Class A voting common stock	AGM.A	New York Stock Exchange
Class C non-voting common stock	AGM	New York Stock Exchange
6.000% Fixed-to-Floating Rate Non-Cumulative Preferred Stock, Series C	AGM.PRC	New York Stock Exchange
5.700% Non-Cumulative Preferred Stock, Series D	AGM.PRD	New York Stock Exchange
5.750% Non-Cumulative Preferred Stock, Series E	AGM.PRE	New York Stock Exchange
5.250% Non-Cumulative Preferred Stock, Series F	AGM.PRF	New York Stock Exchange

Securities registered pursuant to Section 12(g) of the Act: Class B voting common stock

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.

Yes        o                                No          x

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.

Yes        o                                No           x

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes        ☒                              No           ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Yes        ☒                               No          ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company.  See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.  (Check one):

Large accelerated filer	☒	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.    ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes         ☐                               No           ☒

As of November 2, 2020, the registrant had outstanding 1,030,780 shares of Class A voting common stock, 500,301 shares of Class B voting common stock, and 9,204,911 shares of Class C non-voting common stock.

1

Table of Contents

PART I		4
Item 1.	Financial Statements	4
	Consolidated Balance Sheets	4
	Consolidated Statements of Operations	5
	Consolidated Statements of Comprehensive Income	6
	Consolidated Statements of Equity	7
	Consolidated Statements of Cash Flows	9
	Notes to Consolidated Financial Statements	10
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	63
	Forward-Looking Statements	63
	Overview	64
	Use of Non-GAAP Measures	70
	Results of Operations	72
	Outlook	89
	Balance Sheet Review	95
	Risk Management	96
	Liquidity and Capital Resources	114
	Regulatory Matters	115
	Other Matters	116
	Supplemental Information	117
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	122
Item 4.	Controls and Procedures	122
PART II		123
Item 1.	Legal Proceedings	123
Item 1A.	Risk Factors	123
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	125
Item 3.	Default Upon Senior Securities	125
Item 4.	Mine Safety Disclosures	125
Item 5.	Other Information	125
Item 6.	Exhibits	126
Signatures		127

3

PART I

Item 1.Financial Statements

FEDERAL AGRICULTURAL MORTGAGE CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(unaudited)

	As of
	September 30, 2020		December 31, 2019
	(in thousands)
Assets:
Cash and cash equivalents	$	910,592	$	604,381
Investment securities:
Available-for-sale, at fair value (amortized cost of $3,522,674 and $2,961,430, respectively)	3,532,190		2,959,843
Held-to-maturity, at amortized cost	45,032		45,032
Total Investment Securities	3,577,222		3,004,875
Farmer Mac Guaranteed Securities:
Available-for-sale, at fair value (amortized cost of $7,150,606 and $7,016,971, respectively)	7,511,638		7,143,025
Held-to-maturity, at amortized cost	1,200,570		1,447,451
Total Farmer Mac Guaranteed Securities	8,712,208		8,590,476
USDA Securities:
Trading, at fair value	6,830		8,913
Held-to-maturity, at amortized cost	2,410,848		2,232,160
Total USDA Securities	2,417,678		2,241,073
Loans:
Loans held for sale, at lower of cost or fair value	20,000		—
Loans held for investment, at amortized cost	6,825,061		5,390,977
Loans held for investment in consolidated trusts, at amortized cost	1,276,407		1,600,917
Allowance for losses	(15,821)		(10,454)
Total loans, net of allowance	8,105,647		6,981,440
Financial derivatives, at fair value	12,837		10,519
Interest receivable (includes $11,525 and $20,568, respectively, related to consolidated trusts)	153,170		199,195
Guarantee and commitment fees receivable	36,664		38,442
Deferred tax asset, net	29,288		16,510
Prepaid expenses and other assets	43,531		22,463
Total Assets	$	23,998,837	$	21,709,374
Liabilities and Equity:
Liabilities:
Notes payable	21,589,285		19,098,648
Debt securities of consolidated trusts held by third parties	1,292,416		1,616,504
Financial derivatives, at fair value	37,357		27,042
Accrued interest payable (includes $9,353 and $18,018, respectively, related to consolidated trusts)	92,648		106,959
Guarantee and commitment obligation	35,140		36,700
Accounts payable and accrued expenses	18,078		22,081
Reserve for losses	3,568		2,164
Total Liabilities	23,068,492		20,910,098
Commitments and Contingencies (Note 6)
Equity:
Preferred stock:
Series A, par value $25 per share, 2,400,000 shares authorized, issued and outstanding as of December 31, 2019 (redemption value $60,000,000)	—		58,333
Series C, par value $25 per share, 3,000,000 shares authorized, issued and outstanding	73,382		73,382
Series D, par value $25 per share, 4,000,000 shares authorized, issued and outstanding	96,659		96,659
Series E, par value $25 per share, 3,180,000 shares authorized, issued and outstanding	77,003		—
Series F, par value $25 per share, 4,800,000 shares authorized, issued and outstanding	116,160		—
Common stock:
Class A Voting, $1 par value, no maximum authorization, 1,030,780 shares outstanding	1,031		1,031
Class B Voting, $1 par value, no maximum authorization, 500,301 shares outstanding	500		500
Class C Non-Voting, $1 par value, no maximum authorization, 9,204,724 shares and 9,180,744 shares outstanding, respectively	9,205		9,181
Additional paid-in capital	121,525		119,304
Accumulated other comprehensive loss, net of tax	(53,837)		(16,161)
Retained earnings	488,717		457,047
Total Equity	930,345		799,276
Total Liabilities and Equity	$	23,998,837	$	21,709,374

The accompanying notes are an integral part of these consolidated financial statements.

4

FEDERAL AGRICULTURAL MORTGAGE CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited)

	For the Three Months Ended				For the Nine Months Ended
	September 30, 2020		September 30, 2019		September 30, 2020		September 30, 2019
	(in thousands, except per share amounts)
Interest income:
Investments and cash equivalents	$	7,096	$	22,855	$	35,236	$	61,718
Farmer Mac Guaranteed Securities and USDA Securities	45,335		81,649		178,644		252,629
Loans	56,204		56,992		172,230		167,792
Total interest income	108,635		161,496		386,110		482,139
Total interest expense	63,974		121,384		251,789		358,374
Net interest income	44,661		40,112		134,321		123,765
Provision for losses	(653)		(760)		(4,542)		(1,074)
Net interest income after provision for losses	44,008		39,352		129,779		122,691
Non-interest income/(expense):
Guarantee and commitment fees	3,159		3,349		9,495		10,265
(Losses)/gains on financial derivatives	(564)		(7,360)		(3,339)		1,193
(Losses)/gains on trading securities	(258)		49		(173)		154
Gains on sale of real estate owned	—		—		485		—
(Provision)/release of reserve for losses	(547)		137		(540)		424
Other income	594		530		2,639		1,378
Non-interest income/(expense)	2,384		(3,295)		8,567		13,414
Operating expenses:
Compensation and employee benefits	8,791		7,654		27,005		22,030
General and administrative	5,044		5,253		15,702		14,538
Regulatory fees	725		688		2,175		2,063
Real estate owned operating costs, net	—		—		—		64
Operating expenses	14,560		13,595		44,882		38,695
Income before income taxes	31,832		22,462		93,464		97,410
Income tax expense	6,340		4,629		19,516		20,362
Net income	25,492		17,833		73,948		77,048
Preferred stock dividends	(5,166)		(3,427)		(12,536)		(10,508)
Loss on retirement of preferred stock	(1,667)		—		(1,667)		(1,956)
Net income attributable to common stockholders	$	18,659	$	14,406	$	59,745	$	64,584
Earnings per common share:
Basic earnings per common share	$	1.74	$	1.34	$	5.57	$	6.04
Diluted earnings per common share	$	1.73	$	1.33	$	5.54	$	5.99

The accompanying notes are an integral part of these consolidated financial statements.

5

FEDERAL AGRICULTURAL MORTGAGE CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(unaudited)

	For the Three Months Ended				For the Nine Months Ended
	September 30, 2020		September 30, 2019		September 30, 2020		September 30, 2019
					(in thousands)
Net income	$	25,492	$	17,833	$	73,948	$	77,048
Other comprehensive income/(loss) before taxes:
Net unrealized gains/(losses) on available-for-sale securities	47,235		(24,925)		(9,554)		(50,272)
Net changes in held-to-maturity securities	(2,523)		(6,543)		(10,707)		(13,406)
Net unrealized gains/(losses) on cash flow hedges	2,959		(6,736)		(27,429)		(22,373)
Other comprehensive income/(loss) before tax	47,671		(38,204)		(47,690)		(86,051)
Income tax (expense)/benefit related to other comprehensive income/(loss)	(10,011)		8,023		10,014		18,071
Other comprehensive income/(loss) net of tax	37,660		(30,181)		(37,676)		(67,980)
Comprehensive income/(loss)	$	63,152	$	(12,348)	$	36,272	$	9,068

The accompanying notes are an integral part of these consolidated financial statements.

6

FEDERAL AGRICULTURAL MORTGAGE CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF EQUITY

(unaudited)

									Accumulated
							Additional		Other
	Preferred Stock			Common Stock			Paid-In		Comprehensive		Retained		Total
	Shares	Amount		Shares	Amount		Capital		Income/(Loss)		Earnings		Equity
	(in thousands)
Balance as of December 31, 2019	9,400	$	228,374	10,712	$	10,712	$	119,304	$	(16,161)	$	457,047	$	799,276
Cumulative effect adjustment from adoption of current expected credit loss standard	—	—		—	—		—		—		(2,099)		(2,099)
Balance as of January 1, 2020	9,400	$	228,374	10,712	$	10,712	$	119,304	$	(16,161)	$	454,948	$	797,177
Net income	—	—		—	—		—		—		12,830		12,830
Other comprehensive loss, net of tax	—	—		—	—		—		(105,276)		—		(105,276)
Cash dividends:
Preferred stock	—	—		—	—		—		—		(3,431)		(3,431)
Common stock (cash dividend of $0.80 per share)	—	—		—	—		—		—		(8,571)		(8,571)
Issuance of Class C common stock	—	—		15	15		19		—		—		34
Repurchase of Class C Common Stock	—	—		(4)	(4)		—		—		(231)		(235)
Stock-based compensation cost	—	—		—	—		1,293		—				1,293
Other stock-based award activity	—	—		—	—		(204)		—		—		(204)
Balance as of March 31, 2020	9,400	$	228,374	10,723	$	10,723	$	120,412	$	(121,437)	$	455,545	$	693,617
Net income	—	—		—	—		—		—		35,626		35,626
Other comprehensive income, net of tax	—	—		—	—		—		29,940		—		29,940
Cash dividends:
Preferred stock	—	—		—	—		—		—		(3,939)		(3,939)
Common stock (cash dividend of $0.80 per share)	—	—		—	—		—		—		(8,585)		(8,585)
Issuance of Series E preferred stock	3,180	77,003		—	—		—		—		—		77,003
Issuance of Class C common stock	—	—		10	10		17		—		—		27
Stock-based compensation cost	—	—		—	—		719		—		—		719
Other stock-based award activity	—	—		—	—		(292)		—		—		(292)
Balance as of June 30, 2020	12,580	$	305,377	10,733	$	10,733	$	120,856	$	(91,497)	$	478,647	$	824,116
Net income	—	—		—	—		—		—		25,492		25,492
Other comprehensive income, net of tax	—	—		—	—		—		37,660		—		37,660
Cash dividends:
Preferred stock	—	—		—	—		—		—		(5,166)		(5,166)
Common stock (cash dividend of $0.80 per share)	—	—		—	—		—		—		(8,589)		(8,589)
Issuance of Series F preferred stock	4,800	116,160		—	—		—		—		—		116,160
Redemption of Series A preferred stock	(2,400)	(58,333)		—	—		—		—		—		(58,333)
Loss on retirement of preferred stock	—	—		—	—		—		—		(1,667)		(1,667)
Issuance of Class C common stock	—	—		3	3		8		—		—		11
Stock-based compensation cost	—	—		—	—		753		—		—		753
Other stock-based award activity	—	—		—	—		(92)		—		—		(92)
Balance as of September 30, 2020	14,980	$	363,204	10,736	$	10,736	$	121,525	$	(53,837)	$	488,717	$	930,345

7

									Accumulated
							Additional		Other
	Preferred Stock			Common Stock			Paid-In		Comprehensive		Retained		Total
	Shares	Amount		Shares	Amount		Capital		Income/(Loss)		Earnings		Equity
	(in thousands)
Balance as of December 31, 2018	8,400	$	204,759	10,669	$	10,669	$	118,822	$	24,956	$	393,351	$	752,557
Net Income	—	—		—	—		—		—		25,170		25,170
Other comprehensive loss, net of tax	—	—		—	—		—		(3,702)		—		(3,702)
Cash dividends:
Preferred stock	—	—		—	—		—		—		(3,296)		(3,296)
Common stock (cash dividend of $0.70 per share)	—	—		—	—		—		—		(7,470)		(7,470)
Issuance of Class C Common Stock	—	—		20	20		3		—		—		23
Stock-based compensation cost	—	—		—	—		724		—		—		724
Other stock-based award activity	—	—		—	—		(708)		—		—		(708)
Balance as of March 31, 2019	8,400	$	204,759	10,689	$	10,689	$	118,841	$	21,254	$	407,755	$	763,298
Net income	—	—		—	—		—		—		34,045		34,045
Other comprehensive loss, net of tax	—	—		—	—		—		(34,097)		—		(34,097)
Cash dividends:
Preferred stock	—	—		—	—		—		—		(3,785)		(3,785)
Common stock (cash dividend of $0.70 per share)	—	—		—	—		—		—		(7,490)		(7,490)
Issuance of Series D Preferred Stock	4,000	96,659					—		—		—		96,659
Redemption of Series B Preferred Stock	(3,000)	(73,044)		—	—		—		—		—		(73,044)
Loss on retirement of preferred stock	—	—		—	—		—		—		(1,956)		(1,956)
Issuance of Class C Common Stock	—	—		11	11		3		—		—		14
Stock-based compensation cost	—	—		—	—		533		—		—		533
Other stock-based award activity	—	—		—	—		(435)		—		—		(435)
Balance as of June 30, 2019	9,400	$	228,374	10,700	$	10,700	$	118,942	$	(12,843)	$	428,569	$	773,742
Net Income	—	—		—	—		—		—		17,833		17,833
Other comprehensive loss, net of tax	—	—		—	—		—		(30,181)		—		(30,181)
Cash dividends:
Preferred stock	—	—		—	—		—		—		(3,427)		(3,427)
Common stock (cash dividend of $0.70 per share)	—	—		—	—		—		—		(7,496)		(7,496)
Issuance of Class C Common Stock	—	—		10	10		19		—		—		29
Stock-based compensation cost	—	—		—	—		407		—		—		407
Other stock-based award activity	—	—		—	—		(648)		—		—		(648)
Balance as of September 30, 2019	9,400	$	228,374	10,710	$	10,710	$	118,720	$	(43,024)	$	435,479	$	750,259

The accompanying notes are an integral part of these consolidated financial statements.

8

FEDERAL AGRICULTURAL MORTGAGE CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited)

	For the Nine Months Ended
	September 30, 2020		September 30, 2019
	(in thousands)
Cash flows from operating activities:
Net income	$	73,948	$	77,048
Adjustments to reconcile net income to net cash provided by operating activities:
Net amortization of deferred gains, premiums, and discounts on loans, investments, Farmer Mac Guaranteed Securities, and USDA Securities	3,800		(8,032)
Amortization of debt premiums, discounts, and issuance costs	18,502		37,794
Net change in fair value of trading securities, hedged assets, and financial derivatives	(342,380)		(326,537)
Gain on sale of real estate owned	(485)		—
Total provision for allowance for losses	5,083		650
Excess tax benefits related to stock-based awards	(421)		442
Deferred income taxes	(2,763)		637
Stock-based compensation expense	2,765		1,664
Purchases of loans held for sale	(59,150)		—
Proceeds from the sale of loans held for sale	15,000		—
Proceeds from repayment of loans purchased as held for sale	54,661		44,857
Net change in:
Interest receivable	44,706		21,395
Guarantee and commitment fees receivable	218		(4)
Other assets	(20,169)		1,875
Accrued interest payable	(14,311)		7,597
Other liabilities	(4,412)		2,538
Net cash used in operating activities	(225,408)		(138,076)
Cash flows from investing activities:
Purchases of available-for-sale investment securities	(2,177,560)		(1,871,957)
Purchases of Farmer Mac Guaranteed Securities and USDA Securities	(1,798,028)		(2,167,801)
Purchases of loans held for investment	(2,245,958)		(1,528,789)
Purchases of defaulted loans	(6,272)		(469)
Proceeds from repayment of available-for-sale investment securities	1,612,075		991,423
Proceeds from repayment of Farmer Mac Guaranteed Securities and USDA Securities	1,725,500		1,746,948
Proceeds from repayment of loans purchased as held for investment	1,272,603		568,280
Proceeds from sale of Farmer Mac Guaranteed Securities	64,612		199,396
Proceeds from sale of real estate owned	2,191		—
Net cash used in investing activities	(1,550,837)		(2,062,969)
Cash flows from financing activities:
Proceeds from issuance of discount notes	51,936,788		47,036,038
Proceeds from issuance of medium-term notes	10,561,149		7,632,425
Payments to redeem discount notes	(51,785,666)		(46,502,105)
Payments to redeem medium-term notes	(8,293,765)		(5,646,107)
Payments to third parties on debt securities of consolidated trusts	(431,093)		(143,491)
Proceeds from common stock issuance	44		25
Retirement of preferred stock	(60,000)		(75,000)
Proceeds from preferred stock issuance, net of stock issuance costs	193,163		96,659
Tax payments related to share-based awards	(560)		(1,750)
Purchases of common stock	(235)		—
Dividends paid on common and preferred stock	(37,369)		(32,964)
Net cash provided by financing activities	2,082,456		2,363,730
Net change in cash and cash equivalents	306,211		162,685
Cash and cash equivalents at beginning of period	604,381		425,256
Cash and cash equivalents at end of period	$	910,592	$	587,941
Non-cash activity:
Loans acquired and securitized as Farmer Mac Guaranteed Securities	64,612		199,396
Consolidation of Farmer Mac Guaranteed Securities from off-balance sheet to loans held for investment in consolidated trusts and to debt securities of consolidated trusts held by third parties	64,612		141,543
Reclassification of defaulted loans from loans held for investment in consolidated trusts to loans held for investment	42,393		5,392
Reclassification of loans held for sale to loans held for investment	24,150		—
Capitalized interest	937		—
Purchases of securities - traded, not yet settled	—		8,680

  The accompanying notes are an integral part of these consolidated financial statements.

9

FEDERAL AGRICULTURAL MORTGAGE CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

1.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The interim unaudited consolidated financial statements of the Federal Agricultural Mortgage Corporation ("Farmer Mac") and subsidiaries have been prepared pursuant to the rules and regulations of the U.S. Securities and Exchange Commission ("SEC"). These interim unaudited consolidated financial statements reflect all normal and recurring adjustments that are, in the opinion of management, necessary to present a fair statement of the financial position and the results of operations and cash flows of Farmer Mac and subsidiaries for the interim periods presented. Certain information and footnote disclosures normally included in the annual consolidated financial statements have been omitted as permitted by SEC rules and regulations. The December 31, 2019 consolidated balance sheet presented in this report has been derived from Farmer Mac's audited 2019 consolidated financial statements. Management believes that the disclosures are adequate to present fairly the consolidated financial statements as of the dates and for the periods presented. These interim unaudited consolidated financial statements should be read in conjunction with the 2019 consolidated financial statements of Farmer Mac and subsidiaries included in Farmer Mac's Annual Report on Form 10-K for the year ended December 31, 2019, as filed with the SEC on February 25, 2020. Results for interim periods are not necessarily indicative of those that may be expected for the fiscal year. Presented below are Farmer Mac's significant accounting policies that contain updated information for the three and nine months ended September 30, 2020.

Principles of Consolidation

The consolidated financial statements include the accounts of Farmer Mac and its two subsidiaries during the year: (1) Farmer Mac Mortgage Securities Corporation ("FMMSC"), whose principal activities are to facilitate the purchase and issuance of Farmer Mac Guaranteed Securities; and (2) Farmer Mac II LLC, whose principal activity is the operation of substantially all of the business related to the USDA Guarantees line of business – primarily the acquisition of USDA Securities. The consolidated financial statements also include the accounts of Variable Interest Entities ("VIEs") in which Farmer Mac determined itself to be the primary beneficiary.

10

The following tables present, by line of business, details about the consolidation of VIEs:

Table 1.1

	Consolidation of Variable Interest Entities
	As of September 30, 2020
	Farm & Ranch		USDA Guarantees		Corporate		Total
	(in thousands)
On-Balance Sheet:
Consolidated VIEs:
Loans held for investment in consolidated trusts, at amortized cost	$	1,276,407	$	—	$	—	$	1,276,407
Debt securities of consolidated trusts held by third parties (1)	1,292,416		—		—		1,292,416
Unconsolidated VIEs:
Farmer Mac Guaranteed Securities:
Carrying value (2)	—		36,505		—		36,505
Maximum exposure to loss (3)	—		36,414		—		36,414
Investment securities:
Carrying value (4)	—		—		1,835,688		1,835,688
Maximum exposure to loss (3) (4)	—		—		1,829,604		1,829,604
Off-Balance Sheet:
Unconsolidated VIEs:
Farmer Mac Guaranteed Securities:
Maximum exposure to loss (3) (5)	85,767		310,682		—		396,449

(1)Includes borrower remittances of $16.0 million. The borrower remittances had not been passed through to third party investors as of September 30, 2020.

(2)Includes $0.1 million of unamortized premiums and discounts and fair value adjustments related to the USDA Guarantees line of business.

(3)Farmer Mac uses unpaid principal balance and outstanding face amount of investment securities to represent maximum exposure to loss.

(4)Includes auction-rate certificates, asset-backed securities, and government-sponsored enterprise ("GSE")-guaranteed mortgage-backed securities.

(5)The amount under the Farm & Ranch line of business relates to unconsolidated trusts where Farmer Mac determined it was not the primary beneficiary due to shared power with an unrelated party.

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	Consolidation of Variable Interest Entities
	As of December 31, 2019
	Farm & Ranch		USDA Guarantees		Corporate		Total
	(in thousands)
On-Balance Sheet:
Consolidated VIEs:
Loans held for investment in consolidated trusts, at amortized cost	$	1,600,917	$	—	$	—	$	1,600,917
Debt securities of consolidated trusts held by third parties (1)	1,616,504		—		—		1,616,504
Unconsolidated VIEs:
Farmer Mac Guaranteed Securities:
Carrying value (2)	—		32,041		—		32,041
Maximum exposure to loss (3)	—		31,887		—		31,887
Investment securities:
Carrying value (4)	—		—		1,117,203		1,117,203
Maximum exposure to loss (3) (4)	—		—		1,120,765		1,120,765
Off-Balance Sheet:
Unconsolidated VIEs:
Farmer Mac Guaranteed Securities:
Maximum exposure to loss (3) (5)	107,322		389,216		—		496,538

(1)Includes borrower remittances of $15.6 million. The borrower remittances had not been passed through to third party investors as of December 31, 2019.

(2)Includes $0.2 million of unamortized premiums and discounts and fair value adjustments related to the USDA Guarantees line of business.

(3)Farmer Mac uses unpaid principal balance and outstanding face amount of investment securities to represent maximum exposure to loss.

(4)Includes auction-rate certificates, asset-backed securities, and government-sponsored enterprise ("GSE")-guaranteed mortgage-backed securities.

(5)The amount under the Farm & Ranch line of business relates to unconsolidated trusts where Farmer Mac determined it was not the primary beneficiary due to shared power with an unrelated party.

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(a)Earnings Per Common Share

Basic earnings per common share ("EPS") is based on the daily weighted-average number of shares of common stock outstanding.  Diluted earnings per common share is based on the daily weighted-average number of shares of common stock outstanding adjusted to include all potentially dilutive stock appreciation rights ("SARs") and unvested restricted stock awards.  The following schedule reconciles basic and diluted EPS for the three and nine months ended September 30, 2020 and 2019:

Table 1.2

	For the Three Months Ended
	September 30, 2020					September 30, 2019
	Net Income		Weighted-Average Shares	$ per Share		Net Income		Weighted-Average Shares	$ per Share
	(in thousands, except per share amounts)
Basic EPS
Net income attributable to common stockholders	$	18,659	10,734	$	1.74	$	14,406	10,706	$	1.34
Effect of dilutive securities(1)
SARs and restricted stock	—		51	(0.01)		—		70	(0.01)
Diluted EPS	$	18,659	10,785	$	1.73	$	14,406	10,776	$	1.33

(1)For the three months ended September 30, 2020 and 2019, SARs and restricted stock of 66,445 and 26,768, respectively, were outstanding but not included in the computation of diluted earnings per share of common stock because they were anti-dilutive. For the three months ended September 30, 2020 and 2019, contingent shares of unvested restricted stock of 12,680 and 8,414, respectively, were outstanding but not included in the computation of diluted earnings per share of common stock because performance conditions had not yet been met.

	For the Nine Months Ended
	September 30, 2020					September 30, 2019
	Net Income		Weighted-Average Shares	$ per Share		Net Income		Weighted-Average Shares	$ per Share
	(in thousands, except per share amounts)
Basic EPS
Net income attributable to common stockholders	$	59,745	10,725	$	5.57	$	64,584	10,691	$	6.04
Effect of dilutive securities(1)
SARs and restricted stock	—		56	(0.03)		—		83	(0.05)
Diluted EPS	$	59,745	10,781	$	5.54	$	64,584	10,774	$	5.99

(1)For the nine months ended September 30, 2020 and 2019, SARs and restricted stock of 78,963 and 48,801, respectively, were outstanding but not included in the computation of diluted earnings per share of common stock because they were anti-dilutive. For the nine months ended September 30, 2020 and 2019, contingent shares of unvested restricted stock of 12,680 and 10,994, respectively, were outstanding but not included in the computation of diluted earnings per share of common stock because performance conditions had not yet been met.

(b)Comprehensive Income

Comprehensive income represents all changes in stockholders' equity except those resulting from investments by or distributions to stockholders, and is comprised of net income and unrealized gains and losses on available-for-sale securities, certain held-to-maturity securities transferred from the available-for-sale classification, and cash flow hedges, net of related taxes.

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The following table presents the changes in accumulated other comprehensive income ("AOCI"), net of tax, by component for the three and nine months ended September 30, 2020 and 2019:

Table 1.3

	As of September 30, 2020								As of September 30, 2019
	Available-for-Sale Securities		Held-to-Maturity Securities		Cash Flow Hedges		Total		Available-for-Sale Securities		Held-to-Maturity Securities		Cash Flow Hedges		Total
	(in thousands)
For the Three Months Ended:
Beginning Balance	$	(88,261)	$	26,379	$	(29,615)	$	(91,497)	$	(45,384)	$	38,021	$	(5,480)	$	(12,843)
Other comprehensive income/(loss) before reclassifications	38,099		—		904		39,003		(18,915)		—		(5,071)		(23,986)
Amounts reclassified from AOCI	(783)		(1,993)		1,433		(1,343)		(776)		(5,169)		(250)		(6,195)
Net comprehensive income/(loss)	37,316		(1,993)		2,337		37,660		(19,691)		(5,169)		(5,321)		(30,181)
Ending Balance	$	(50,945)	$	24,386	$	(27,278)	$	(53,837)	$	(65,075)	$	32,852	$	(10,801)	$	(43,024)
For the Nine Months Ended:
Beginning Balance	$	(43,397)	$	32,845	$	(5,609)	$	(16,161)	$	(25,360)	$	43,443	$	6,873	$	24,956
Other comprehensive loss before reclassifications	(5,210)		—		(24,684)		(29,894)		(37,308)		—		(16,679)		(53,987)
Amounts reclassified from AOCI	(2,338)		(8,459)		3,015		(7,782)		(2,407)		(10,591)		(995)		(13,993)
Net comprehensive loss	(7,548)		(8,459)		(21,669)		(37,676)		(39,715)		(10,591)		(17,674)		(67,980)
Ending Balance	$	(50,945)	$	24,386	$	(27,278)	$	(53,837)	$	(65,075)	$	32,852	$	(10,801)	$	(43,024)

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The following table presents other comprehensive income activity, the impact on net income of amounts reclassified from each component of AOCI, and the related tax impact for the three and nine months ended September 30, 2020 and 2019:

Table 1.4

	For the Three Months Ended
	September 30, 2020						September 30, 2019
	Before Tax		Provision (Benefit)		After Tax		Before Tax		Provision (Benefit)		After Tax
	(in thousands)
Other comprehensive income:
Available-for-sale-securities:
Unrealized holding gains/(losses) on available-for-sale securities	$	48,226	$	10,127	$	38,099	$	(23,943)	$	(5,028)	$	(18,915)
Less reclassification adjustments included in:
Net interest income(1)	(976)		(205)		(771)		(961)		(202)		(759)
Other income(2)	(15)		(3)		(12)		(21)		(4)		(17)
Total	$	47,235	$	9,919	$	37,316	$	(24,925)	$	(5,234)	$	(19,691)
Held-to-maturity securities:
Less reclassification adjustments included in:
Net interest income(3)	(2,523)		(530)		(1,993)		(6,543)		(1,374)		(5,169)
Total	$	(2,523)	$	(530)	$	(1,993)	$	(6,543)	$	(1,374)	$	(5,169)
Cash flow hedges
Unrealized gains/(losses) on cash flow hedges	$	1,145	$	241	$	904	$	(6,419)	$	(1,348)	$	(5,071)
Less reclassification adjustments included in:
Net interest income(4)	1,814		381		1,433		(317)		(67)		(250)
Total	$	2,959	$	622	$	2,337	$	(6,736)	$	(1,415)	$	(5,321)
Other comprehensive income/(loss)	$	47,671	$	10,011	$	37,660	$	(38,204)	$	(8,023)	$	(30,181)

(1)Relates to the amortization of unrealized gains on hedged items prior to the application of fair value hedge accounting.

(2)Represents amortization of deferred gains related to certain available-for-sale USDA Securities and Farmer Mac Guaranteed USDA Securities.

(3)Relates to the amortization of unrealized gains or losses prior to the reclassification of these securities from available-for-sale to held-to-maturity. The amortization of unrealized gains or losses reported in AOCI for held-to-maturity securities will be offset by the amortization of the premium or discount created from the transfer into held-to-maturity securities, which occurred at fair value. These unrealized gains or losses will be recorded over the remaining life of the security with no impact on future net income.

(4)Relates to the recognition of unrealized gains and losses on cash flow hedges recorded in AOCI.

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	For the Nine Months Ended
	September 30, 2020						September 30, 2019
	Before Tax		Provision (Benefit)		After Tax		Before Tax		Provision (Benefit)		After Tax
	(in thousands)
Other comprehensive income:
Available-for-sale-securities:
Unrealized holding losses on available-for-sale securities	$	(6,596)	$	(1,386)	$	(5,210)	$	(47,225)	$	(9,917)	$	(37,308)
Less reclassification adjustments included in:
Net interest income(1)	(2,916)		(612)		(2,304)		(2,870)		(603)		(2,267)
Other income(2)	(42)		(8)		(34)		(177)		(37)		(140)
Total	$	(9,554)	$	(2,006)	$	(7,548)	$	(50,272)	$	(10,557)	$	(39,715)
Held-to-maturity securities:
Less reclassification adjustments included in:
Net interest income(3)	(10,707)		(2,248)		(8,459)		(13,406)		(2,815)		(10,591)
Total	$	(10,707)	$	(2,248)	$	(8,459)	$	(13,406)	$	(2,815)	$	(10,591)
Cash flow hedges
Unrealized losses on cash flow hedges	$	(31,246)	$	(6,562)	$	(24,684)	$	(21,113)	$	(4,434)	$	(16,679)
Less reclassification adjustments included in:
Net interest income(4)	3,817		802		3,015		(1,260)		(265)		(995)
Total	$	(27,429)	$	(5,760)	$	(21,669)	$	(22,373)	$	(4,699)	$	(17,674)
Other comprehensive loss	$	(47,690)	$	(10,014)	$	(37,676)	$	(86,051)	$	(18,071)	$	(67,980)

(1)Relates to the amortization of unrealized gains on hedged items prior to the application of fair value hedge accounting.

(2)Represents amortization of deferred gains related to certain available-for-sale USDA Securities and Farmer Mac Guaranteed USDA Securities.

(3)Relates to the amortization of unrealized gains or losses prior to the reclassification of these securities from available-for-sale to held-to-maturity. The amortization of unrealized gains or losses reported in AOCI for held-to-maturity securities will be offset by the amortization of the premium or discount created from the transfer into held-to-maturity securities, which occurred at fair value. These unrealized gains or losses will be recorded over the remaining life of the security with no impact on future net income.

(4)Relates to the recognition of unrealized gains and losses on cash flow hedges recorded in AOCI.

(c)Allowance for Losses and Reserve for Losses

On January 1, 2020, Farmer Mac adopted Accounting Standards Update 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, ("CECL"). Under CECL, Farmer Mac's allowance for credit losses represents the difference between the carrying amount of the related financial instruments and the present value of their expected cash flows discounted at their effective interest rates, as of the respective balance sheet date. Under CECL, Farmer Mac's reserve for credit losses represents the difference between the outstanding amount of off-balance sheet credit exposures and the present value of their expected cash flows discounted at their effective interest rates.

Farmer Mac maintains an allowance for credit losses to cover current expected credit losses as of the balance sheet date for on-balance sheet investment securities, loans held for investment, and Farmer Mac Guaranteed Securities (collectively referred to as "allowance for losses"). Additionally, Farmer Mac maintains a reserve for credit losses to cover current expected credit losses as of the balance sheet date for off-balance sheet loans underlying LTSPCs and off-balance sheet Farmer Mac Guaranteed Securities (collectively referred to as "reserve for losses"). Both the allowance for losses and reserve for losses are based on historical information and reasonable and supportable forecasts.  

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Farmer Mac has never experienced a credit loss in its Rural Utilities line of business. Upon the adoption of CECL, Farmer Mac is now required to measure its expected credit losses for the expected life of all financial instruments, including its Rural Utilities loans. To estimate expected credit losses on these loans, Farmer Mac relies upon industry historical credit loss data from ratings agencies and publicly available information as disclosed in the securities filings of other major lenders who serve the utilities industry.

The allowance for losses increases through periodic provisions for loan losses that are charged against net interest income and the reserve for losses increases through provisions for losses that are charged to non-interest expense. Both the allowance for losses and reserve for losses are decreased by charge-offs for realized losses, net of recoveries.  Releases from the allowance for losses or reserve for losses occur when the estimate of expected credit losses as of the end of a period is less than the estimate at the beginning of the period.

The total allowance for losses consists of the allowance for losses and the reserve for losses.

Charge-offs

Farmer Mac records a charge-off against the allowance for losses principally when a loss has been confirmed through the receipt of assets, generally the underlying collateral, in full satisfaction of the loan. The loss equals the excess of the recorded investment in the loan over the fair value of the collateral less estimated selling costs.

Estimation Methodology

Farmer Mac bases its methodology for determining its current estimate of expected losses on a statistical model, which incorporates credit loss history and reasonable and supportable forecasts. Farmer Mac's estimation methodology is comprised of the following key components:

•An economic model for each portfolio, including Farm & Ranch, Rural Utilities, and Institutional Credit;

•A migration matrix for each portfolio that reasonably predicts the movement of each financial asset among various risk categories over the course of each asset's expected life. The migration matrix forms the basis for our estimate of the probability of default of each financial asset;

•A loss-given-default ("LGD") model that reasonably predicts the amount of loss that Farmer Mac would incur upon the default of each financial asset;

•An economic factor forecast that updates the migration matrix model and the LGD model with current assumptions for the economic indicators that Farmer Mac has determined are most correlated with or relevant to the performance of each portfolio of assets; including Gross Domestic Product ("GDP"), credit spreads, unemployment rates, land values, and commodity prices; and

•A discounted cash flow analysis, which relies upon each of the above model outputs, plus the contractual terms of each financial asset, and the effective interest rate of each financial asset.

Management evaluates these assumptions by considering many relevant factors, including:

•economic conditions;

•geographic and agricultural commodity/product concentrations in the portfolio;

•the credit profile of the portfolio, including risk ratings and financial metrics;

•delinquency trends of the portfolio;

•historical charge-off and recovery activities of the portfolio; and

17

•other factors to capture current portfolio trends and characteristics that differ from historical experience.

Management believes that its methodology produces a reasonable estimate of expected credit losses, as of the balance sheet date, for the expected life of all of its financial assets.

Allowance for Loss on Available-for-Sale (AFS) Securities

To measure current expected credit losses on impaired AFS securities, Farmer Mac first considers those impaired securities that: 1) Farmer Mac does not intend to sell, and 2) it is not more likely than not that Farmer Mac will be required to sell before recovering its amortized cost basis. In assessing whether a credit loss exists, Farmer Mac compares the present value, discounted at the security's effective interest rate, of cash flows expected to be collected from an impaired AFS debt security to its amortized cost basis. If the present value of cash flows expected to be collected is less than the amortized cost basis of the impaired security, a credit loss exists and Farmer Mac records an allowance for loss for that credit loss. However, the amount of that allowance is limited by the amount that the security’s fair value is less than its amortized cost basis. Accrued interest receivable is recorded separately on the Consolidated Balance Sheet, and the allowance for credit losses excludes uncollectible accrued interest receivable.

Collateral Dependent Assets ("CDAs")

CDAs are loans, loans underlying LTSPCs, or off-balance sheet credit exposures in which the borrower is either in foreclosure or is experiencing financial difficulty and repayment is expected to be provided substantially through the sale or operation of the collateral by Farmer Mac. Farmer Mac estimates the current expected credit loss on CDAs based upon the appraised value of the collateral, the costs to sell it, and any applicable credit protection such as a guarantee.

COVID-19 Payment Deferments

The Coronavirus Aid, Relief, and Economic Security Act ("CARES Act") was signed into law on March 27, 2020. Section 4013 of the CARES Act titled “Temporary Relief from Troubled Debt Restructurings” provides financial institutions the option to temporarily suspend certain requirements under U.S. GAAP related to troubled debt restructurings (“TDRs”) for a limited period of time to account for the effects of the novel coronavirus disease 2019 ("COVID-19"). On April 10, 2020, Farmer Mac’s prudential regulator, the Office of Secondary Market Oversight (OSMO) within the Farm Credit Administration (FCA), issued guidance to Farmer Mac on loan servicing and reporting TDRs for lines of business affected by the COVID-19 outbreak. This guidance was consistent with the guidance provided by other financial regulatory agencies and the Financial Accounting Standards Board that short-term modifications made on a good faith basis in response to the COVID-19 national emergency are not TDRs when the borrower was not past due on loan payments before the March 13, 2020 presidential proclamation declaring the COVID-19 outbreak a national emergency.

During second quarter 2020, Farmer Mac implemented the guidance from FCA by granting up to 6-month payment deferments to borrowers who have been economically impacted by COVID-19. Farmer Mac deems loans under a COVID-19 payment deferment not to be past due and continues to accrue interest on those loans. Furthermore, Farmer Mac does not consider a payment deferment on any such loan to be a troubled debt restructuring. For the purpose of estimating expected credit losses on Farm & Ranch loans held for investment, Farmer Mac does consider payment deferments along with other available credit and economic information that pertains to that portfolio.

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(d)New Accounting Standards

Recently Adopted Accounting Guidance

Standard	Description	Date of Adoption	Effect on Consolidated Financial Statements
ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments	This Update required entities to measure all expected credit losses for financial assets held at amortized cost at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts, as well as requiring entities to use forward-looking information to form their credit loss estimates.	January 1, 2020	In first quarter 2020 Farmer Mac adopted the new guidance. The cumulative-effect adjustment to retained earnings as of January 1, 2020 reflected application of the new guidance and did not have a material effect on Farmer Mac's financial position, results of operations, or cash flows. For more information on the transition adjustment see Table 1.5 below.
ASU 2017-08, Receivables - Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities	The amendments in this Update shorten the amortization period for certain callable debt securities held at a premium by requiring the premium to be amortized to the earliest call date. There is no required accounting change for securities held at a discount in this Update.	January 1, 2020	The adoption of this Update did not have a material effect on Farmer Mac's financial position, results of operations, or cash flows.
ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement	The amendments in this Update modify the disclosure requirements on fair value measurements in Topic 820, Fair Value Measurements, including the consideration of costs and benefits. Certain disclosure requirements were either removed, modified, or added.	January 1, 2020	The adoption of this Update did not have a material effect on Farmer Mac's financial position, results of operations, or cash flows.

The following table presents the impact of adopting CECL on January 1, 2020 on our allowance and retained earnings:

Table 1.5

	December 31, 2019		Transition Adjustment		January 1, 2020
	(in thousands)
Allowance:
Farm & Ranch:
Loans	$	10,454	$	(3,909)	$	6,545
Long-term standby purchase commitments and guarantees	2,164		(148)		2,016
Rural Utilities:
Loans	—		5,378		5,378
Long-term standby purchase commitments	—		1,011		1,011
Farmer Mac Guaranteed Securities:
AgVantage	—		315		315
Investment Securities	—		9		9
Total Allowance	$	12,618	$	2,656	$	15,274
Retained Earnings	$	457,047	$	(2,099)	$	454,948

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Recently Issued Accounting Guidance, Not Yet Adopted Within Our Consolidated Financial Statements

Standard	Description	Date of Planned Adoption	Effect on Consolidated Financial Statements
ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting	The amendments in this Update provide optional guidance for a limited period of time to ease the potential burden in accounting for reference rate reform on financial reporting. They provide optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met.	The amendments in this Update are effective for all entities as of March 12, 2020 through December 31, 2022.	Farmer Mac is currently evaluating the impact of the discontinuation of LIBOR on the consolidated financial statements and the applicability of the optional guidance provided by this Update.

(e)Reclassifications

Certain reclassifications of prior period information were made to conform to the current period presentation.

2.INVESTMENT SECURITIES

The following tables set forth information about Farmer Mac's investment securities as of September 30, 2020 and December 31, 2019:

Table 2.1

	As of September 30, 2020
	Amount Outstanding		Unamortized Premium/(Discount)		Amortized Cost(1)		Allowance for losses(2)		Unrealized Gains		Unrealized Losses		Fair Value
	(in thousands)
Available-for-sale:
Floating rate auction-rate certificates backed by Government guaranteed student loans	$	19,700	$	—	$	19,700	$	(37)	$	—	$	(591)	$	19,072
Floating rate asset-backed securities	9,205		—		9,205		—		—		(4)		9,201
Floating rate Government/GSE guaranteed mortgage-backed securities	2,279,737		33		2,279,770		—		9,415		(3,152)		2,286,033
Fixed rate GSE guaranteed mortgage-backed securities	285		—		285		—		33		—		318
Fixed rate U.S. Treasuries	1,204,308		9,406		1,213,714		—		3,861		(9)		1,217,566
Total available-for-sale	3,513,235		9,439		3,522,674		(37)		13,309		(3,756)		3,532,190
Held-to-maturity:
Floating rate Government/GSE guaranteed mortgage-backed securities(3)	45,032		—		45,032		—		1,153		—		46,185
Total investment securities	$	3,558,267	$	9,439	$	3,567,706	$	(37)	$	14,462	$	(3,756)	$	3,578,375

(1)Amounts presented exclude $5.7 million of accrued interest receivable on investment securities as of September 30, 2020.

(2)Represents the amount of impairment that has resulted from credit-related factors, and therefore was recognized in the consolidated statement of operations as a provision for losses. Amount excludes unrealized losses relating to non-credit factors.

(3)The held-to-maturity investment securities had a weighted average yield of 1.5% as of September 30, 2020.

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	As of December 31, 2019
	Amount Outstanding		Unamortized Premium/(Discount)		Amortized Cost		Unrealized Gains		Unrealized Losses		Fair Value
	(in thousands)
Available-for-sale:
Floating rate auction-rate certificates backed by Government guaranteed student loans	$	19,700	$	—	$	19,700	$	—	$	(788)	$	18,912
Floating rate asset-backed securities	11,092		—		11,092		—		(7)		11,085
Floating rate Government/GSE guaranteed mortgage-backed securities	1,633,731		1,174		1,634,905		2,414		(4,736)		1,632,583
Fixed rate GSE guaranteed mortgage-backed securities	315		—		315		25		—		340
Fixed rate U.S. Treasuries	1,295,210		208		1,295,418		1,520		(15)		1,296,923
Total available-for-sale	2,960,048		1,382		2,961,430		3,959		(5,546)		2,959,843
Held-to-maturity:
Floating rate Government/GSE guaranteed mortgage-backed securities(1)	45,032		—		45,032		953		—		45,985
Total investment securities	$	3,005,080	$	1,382	$	3,006,462	$	4,912	$	(5,546)	$	3,005,828

(1)The held-to-maturity investment securities had a weighted average yield of 3.3% as of December 31, 2019.

Farmer Mac did not sell any securities from its available-for-sale investment portfolio during the three and nine months ended September 30, 2020 and 2019.

As of September 30, 2020 and December 31, 2019, unrealized losses on available-for-sale investment securities were as follows:

Table 2.2

	As of September 30, 2020
	Available-for-Sale Securities
	Unrealized loss position for less than 12 months				Unrealized loss position for more than 12 months
	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
	(dollars in thousands)
Floating rate auction-rate certificates backed by Government guaranteed student loans	$	—	$	—	$	19,072	$	(591)
Floating rate asset-backed securities	—		—		6,873		(4)
Floating rate Government/GSE guaranteed mortgage-backed securities	154,452		(464)		403,469		(2,688)
Fixed rate U.S. Treasuries	50,861		(9)		—		—
Total	$	205,313	$	(473)	$	429,414	$	(3,283)
Number of securities in loss position			27				63

21

	As of December 31, 2019
	Available-for-Sale Securities
	Unrealized loss position for less than 12 months				Unrealized loss position for more than 12 months
	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
	(dollars in thousands)
Floating rate auction-rate certificates backed by Government guaranteed student loans	$	—	$	—	$	18,912	$	(788)
Floating rate asset-backed securities	2,583		(1)		8,502		(6)
Floating rate Government/GSE guaranteed mortgage-backed securities	841,993		(2,244)		436,621		(2,492)
Fixed rate U.S. Treasuries	35,107		(15)		—		—
Total	$	879,683	$	(2,260)	$	464,035	$	(3,286)
Number of securities in loss position			57				62

The unrealized losses presented above are principally due to a general widening of market spreads and changes in the levels of interest rates from the dates of acquisition to September 30, 2020 and December 31, 2019, as applicable. The resulting decrease in fair values reflects an increase in the perceived risk by the financial markets related to those securities. As of both September 30, 2020 and December 31, 2019, all of the investment securities in an unrealized loss position either were backed by the full faith and credit of the U.S. government or had credit ratings of at least "AA+."

Securities in unrealized loss positions for 12 months or longer have a fair value as of September 30, 2020 that is, on average, approximately 99.2% of their amortized cost basis. Farmer Mac believes that all of these unrealized losses are recoverable within a reasonable period of time by way of maturity or changes in credit spreads.

The amortized cost, fair value, and weighted-average yield of available-for-sale investment securities by remaining contractual maturity as of September 30, 2020 are set forth below. Asset-backed and mortgage-backed securities are included based on their final maturities, although the actual maturities may differ due to prepayments of the underlying assets.

Table 2.3

	As of September 30, 2020
	Available-for-Sale Securities
	Amortized Cost		Fair Value		Weighted- Average Yield
	(dollars in thousands)
Due within one year	$	1,142,369	$	1,146,222	2.01%
Due after one year through five years	361,971		362,065		0.76%
Due after five years through ten years	1,129,147		1,134,255		0.67%
Due after ten years	889,187		889,648		0.69%
Total	$	3,522,674	$	3,532,190	1.12%

22

3.FARMER MAC GUARANTEED SECURITIES AND USDA SECURITIES

The following tables set forth information about on-balance sheet Farmer Mac Guaranteed Securities and USDA Securities as of September 30, 2020 and December 31, 2019:

Table 3.1

	As of September 30, 2020
	Unpaid Principal Balance		Unamortized Premium/(Discount)		Amortized Cost(1)		Allowance for losses(2)		Unrealized Gains		Unrealized Losses		Fair Value
	(in thousands)
Held-to-maturity:
AgVantage	$	1,164,353	$	(73)	$	1,164,280	$	(216)	$	25,969	$	(99)	$	1,189,934
Farmer Mac Guaranteed USDA Securities	36,414		92		36,506		—		1,026		(1)		37,531
Total Farmer Mac Guaranteed Securities	1,200,767		19		1,200,786		(216)		26,995		(100)		1,227,465
USDA Securities	2,381,416		29,432		2,410,848		—		105,721		(1,398)		2,515,171
Total held-to-maturity	$	3,582,183	$	29,451	$	3,611,634	$	(216)	$	132,716	$	(1,498)	$	3,742,636
Available-for-sale:
AgVantage	$	7,149,082	$	1,524	$	7,150,606	$	(330)	$	394,280	$	(32,918)	$	7,511,638
Trading:
USDA Securities(3)	$	6,617	$	352	$	6,969	$	—	$	10	$	(149)	$	6,830

(1)Amounts presented exclude $32.7 million, $41.1 million, and $0.1 million of accrued interest receivable on available-for-sale, held-to-maturity, and trading securities, respectively, as of September 30, 2020.

(2)Represents the amount of impairment that has resulted from credit-related factors, and therefore was recognized in the statement of financial operations as a provision for losses. Amount excludes unrealized losses relating to non-credit factors.

(3)The trading USDA securities had a weighted average yield of 5.09% as of September 30, 2020.

	As of December 31, 2019
	Unpaid Principal Balance		Unamortized Premium/(Discount)		Amortized Cost		Unrealized Gains		Unrealized Losses		Fair Value
	(in thousands)
Held-to-maturity:
AgVantage	$	1,415,584	$	(174)	$	1,415,410	$	15,300	$	(164)	$	1,430,546
Farmer Mac Guaranteed USDA Securities	31,887		154		32,041		839		—		32,880
Total Farmer Mac Guaranteed Securities	1,447,471		(20)		1,447,451		16,139		(164)		1,463,426
USDA Securities	2,190,671		41,489		2,232,160		54,356		(758)		2,285,758
Total held-to-maturity	$	3,638,142	$	41,469	$	3,679,611	$	70,495	$	(922)	$	3,749,184
Available-for-sale:
AgVantage	$	7,017,095	$	(124)	$	7,016,971	$	161,316	$	(35,262)	$	7,143,025
Trading:
USDA Securities(1)	$	8,400	$	479	$	8,879	$	61	$	(27)	$	8,913

(1)The trading USDA securities had a weighted average yield of 5.20% as of December 31, 2019.

23

As of September 30, 2020 and December 31, 2019, unrealized losses on held-to-maturity and available-for-sale on-balance sheet Farmer Mac Guaranteed Securities and USDA Securities were as follows:

Table 3.2

	As of September 30, 2020
	Held-to-Maturity and Available-for-Sale Securities
	Unrealized loss position for less than 12 months				Unrealized loss position for more than 12 months
	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
	(in thousands)
Held-to-maturity:
AgVantage	$	49,901	$	(99)	$	—	$	—
Farmer Mac Guaranteed USDA Securities	45		(1)		—		—
USDA Securities	$	—	$	—	$	21,521	$	(1,398)
Total held-to-maturity	$	49,946	$	(100)	$	21,521	$	(1,398)
Available-for-sale:
AgVantage	$	333,544	$	(445)	$	972,161	$	(32,473)

	As of December 31, 2019
	Held-to-Maturity and Available-for-Sale Securities
	Unrealized loss position for less than 12 months				Unrealized loss position for more than 12 months
	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
	(in thousands)
Held-to-maturity:
AgVantage	$	—	$	—	$	301,836	$	(164)
USDA Securities	—		—		27,089		(758)
Total held-to-maturity	$	—	$	—	$	328,925	$	(922)
Available-for-sale:
AgVantage	$	225,239	$	(2,203)	$	1,394,802	$	(33,059)

The unrealized losses presented above are principally due to changes in interest rates from the date of acquisition to September 30, 2020 and December 31, 2019, as applicable. The unrealized losses on the held-to-maturity USDA Securities as of both September 30, 2020 and December 31, 2019 reflect their increased cost basis resulting from their transfer to held-to-maturity as of October 1, 2016.

The credit exposure related to Farmer Mac's USDA Guarantees line of business is covered by the full faith and credit guarantee of the United States of America. As of September 30, 2020, Farmer Mac had executed COVID-19 payment deferments on loans with unpaid principal balances of $83.8 million underlying USDA Securities.

The unrealized losses from AgVantage securities were on 12 and 17 available-for-sale securities as of September 30, 2020 and December 31, 2019, respectively. There were 2 and 4 held-to-maturity AgVantage securities with an unrealized loss as of September 30, 2020 and December 31, 2019,

24

respectively. As of September 30, 2020 and December 31, 2019, 7 and 13 available-for-sale AgVantage securities, respectively, had been in a loss position for more than 12 months.

During the three and nine months ended September 30, 2020 and 2019, Farmer Mac had no sales of Farmer Mac Guaranteed Securities or USDA Securities and, therefore, Farmer Mac realized no gains or losses.

The amortized cost, fair value, and weighted-average yield of available-for-sale and held-to-maturity Farmer Mac Guaranteed Securities and USDA Securities by remaining contractual maturity as of September 30, 2020 are set forth below. The balances presented are based on their final maturities, although the actual maturities may differ due to prepayments of the underlying assets.

Table 3.3

	As of September 30, 2020
	Available-for-Sale Securities
	Amortized Cost(1)		Fair Value		Weighted- Average Yield
	(dollars in thousands)
Due within one year	$	1,461,551	$	1,468,084	1.48	%
Due after one year through five years	3,102,003		3,214,595		2.24	%
Due after five years through ten years	1,073,248		1,157,450		2.42	%
Due after ten years	1,513,804		1,671,509		2.57	%
Total	$	7,150,606	$	7,511,638	2.18	%

(1)Amounts presented exclude $32.7 million of accrued interest receivable.

	As of September 30, 2020
	Held-to-Maturity Securities
	Amortized Cost(1)		Fair Value		Weighted- Average Yield
	(dollars in thousands)
Due within one year	$	482,593	$	486,460	2.75	%
Due after one year through five years	765,529		790,138		3.15	%
Due after five years through ten years	226,396		234,799		2.96	%
Due after ten years	2,137,116		2,231,239		3.25	%
Total	$	3,611,634	$	3,742,636	3.11	%

(1)Amounts presented exclude $41.1 million of accrued interest receivable.

4.FINANCIAL DERIVATIVES

Farmer Mac enters into financial derivative transactions to protect against risk from the effects of market price, or interest rate movements, on the value of certain assets, future cash flows, or debt issuance, and not for trading or speculative purposes.  For more information about Farmer Mac's financial derivatives, see Note 6 in Farmer Mac's Annual Report on Form 10-K for the fiscal year ended December 31, 2019 filed with the SEC on February 25, 2020.

25

The following tables summarize information related to Farmer Mac's financial derivatives on a gross basis without giving consideration to master netting arrangements as of September 30, 2020 and December 31, 2019:

Table 4.1

	As of September 30, 2020
			Fair Value				Weighted- Average Pay Rate	Weighted- Average Receive Rate	Weighted- Average Forward Price	Weighted- Average Remaining Term (in years)
	Notional Amount		Asset		(Liability)
	(dollars in thousands)
Fair value hedges:
Interest rate swaps:
Pay fixed non-callable	$	5,410,407	$	5,530	$	(4,106)	2.26%	0.24%		12.02
Receive fixed non-callable	2,435,729		—		(11,532)		0.35%	1.75%		2.26
Receive fixed callable	343,500		4,460		—		0.18%	1.78%		3.41
Cash flow hedges:
Interest rate swaps:
Pay fixed non-callable	482,000		1,597		(10,739)		2.02%	0.56%		6.17
No hedge designation:
Interest rate swaps:
Pay fixed non-callable	356,864		—		(10,879)		2.38%	0.24%		4.26
Receive fixed non-callable	2,622,182		—		—		0.16%	0.98%		0.73
Receive fixed callable	200,000		1		(5)		0.07%	0.08%		0.97
Basis swaps	3,268,500		1,242		(188)		0.22%	0.25%		1.29
Treasury futures	4,400		9		—				139.73
Credit valuation adjustment			(2)		92
Total financial derivatives	$	15,123,582	$	12,837	$	(37,357)
Collateral (held)/pledged			(600)		225,646
Net amount			$	12,237	$	188,289

26

	As of December 31, 2019
			Fair Value				Weighted- Average Pay Rate	Weighted- Average Receive Rate	Weighted- Average Forward Price	Weighted- Average Remaining Term (in years)
	Notional Amount		Asset		(Liability)
	(dollars in thousands)
Fair value hedges:
Interest rate swaps:
Pay fixed non-callable	$	4,955,686	$	7,163	$	(3,281)	2.47%	1.93%		11.26
Receive fixed non-callable	1,413,200		76		(5,329)		1.88%	2.13%		1.25
Receive fixed callable	524,000		476		(772)		1.52%	1.91%		2.83
Cash flow hedges:
Interest rate swaps:
Pay fixed non-callable	428,000		1,882		(1,514)		2.36%	2.12%		5.43
No hedge designation:
Interest rate swaps:
Pay fixed non-callable	342,745		7		(14,046)		3.55%	2.00%		5.51
Receive fixed non-callable	3,124,148		49		(1,637)		1.88%	2.06%		1.66
Receive fixed callable	525,000		79		(80)		1.64%	1.68%		0.83
Basis swaps	2,670,000		787		(395)		1.86%	1.76%		0.90
Treasury futures	39,400		—		(51)				128.29
Credit valuation adjustment			—		63
Total financial derivatives	$	14,022,179	$	10,519	$	(27,042)
Collateral (held)/pledged			(2,685)		132,129
Net amount			$	7,834	$	105,087

As of September 30, 2020, Farmer Mac expects to reclassify $5.3 million after tax from accumulated other comprehensive income to earnings over the next twelve months. This amount could differ from amounts actually recognized due to changes in interest rates, hedge de-designations, and the addition of other hedges after September 30, 2020. During the three and nine months ended September 30, 2020 and 2019, there were no gains or losses from interest rate swaps designated as cash flow hedges reclassified to earnings because it was probable that the originally forecasted transactions would occur.

27

The following table summarizes the net income/(expense) recognized in the consolidated statements of operations related to derivatives for the three and nine months ended September 30, 2020 and 2019:

Table 4.2

	For the Three Months Ended September 30, 2020
	Net Income/(Expense) Recognized in Consolidated Statement of Operations on Derivatives
	Net Interest Income						Non-Interest Income		Total
	Interest Income Farmer Mac Guaranteed Securities and USDA Securities		Interest Income Loans		Total Interest Expense		Losses on financial derivatives
	(in thousands)
Total amounts presented in the consolidated statement of operations	$	45,335	$	56,204	$	(63,974)	$	(564)	$	37,001
Income/(expense) related to interest settlements on fair value hedging relationships:
Recognized on derivatives	(20,373)		(6,194)		9,605		—		(16,962)
Recognized on hedged items	31,439		10,965		(12,328)		—		30,076
Discount amortization recognized on hedged items	—		—		(191)		—		(191)
Income/(expense) related to interest settlements on fair value hedging relationships	$	11,066	$	4,771	$	(2,914)	$	—	$	12,923
(Losses)/gains on fair value hedging relationships:
Recognized on derivatives	$	38,363	$	28,198	$	(9,665)	$	—	$	56,896
Recognized on hedged items	(41,855)		(29,372)		9,284		—		(61,943)
(Losses)/gains on fair value hedging relationships	$	(3,492)	$	(1,174)	$	(381)	$	—	$	(5,047)
Expense related to interest settlements on cash flow hedging relationships:
Interest settlements reclassified from AOCI into net income on derivatives	$	—	$	—	$	(1,814)	$	—	$	(1,814)
Recognized on hedged items	—		—		(711)		—		(711)
Discount amortization recognized on hedged items	—		—		(4)		—		(4)
Expense recognized on cash flow hedges	$	—	$	—	$	(2,529)	$	—	$	(2,529)
Losses on financial derivatives not designated in hedging relationships:
Losses on interest rate swaps	$	—	$	—	$	—	$	(4,292)	$	(4,292)
Interest expense on interest rate swaps	—		—		—		3,800		3,800
Treasury futures	—		—		—		(72)		(72)
Losses on financial derivatives not designated in hedge relationships	$	—	$	—	$	—	$	(564)	$	(564)

28

	For The Three Months Ended September 30, 2019
	Net Income/(Expense) Recognized in Consolidated Statement of Operations on Derivatives
	Net Interest Income						Non-Interest Income		Total
	Interest Income Farmer Mac Guaranteed Securities and USDA Securities		Interest Income Loans		Total Interest Expense		Losses on financial derivatives
	(in thousands)
Total amounts presented in the consolidated statement of operations:	$	81,649	$	56,992	$	(121,384)	$	(7,360)	$	9,897
Income/(expense) related to interest settlements on fair value hedging relationships:
Recognized on derivatives	(1,051)		(584)		(961)		—		(2,596)
Recognized on hedged items	31,435		7,321		(10,778)		—		27,978
Discount amortization recognized on hedged items	—		—		(146)		—		(146)
Income/(expense) related to interest settlements on fair value hedging relationships	$	30,384	$	6,737	$	(11,885)	$	—	$	25,236
(Losses)/gains on fair value hedging relationships:
Recognized on derivatives	$	(87,495)	$	(35,597)	$	1,979	$	—	$	(121,113)
Recognized on hedged items	84,164		33,493		(1,034)		—		116,623
(Losses)/gains on fair value hedging relationships	$	(3,331)	$	(2,104)	$	945	$	—	$	(4,490)
Expense related to interest settlements on cash flow hedging relationships:
Interest settlements reclassified from AOCI into net income on derivatives	$	—	$	—	$	317	$	—	$	317
Recognized on hedged items	—		—		(2,726)		—		(2,726)
Discount amortization recognized on hedged items	—		—		(1)		—		(1)
Expense recognized on cash flow hedges	$	—	$	—	$	(2,410)	$	—	$	(2,410)
Losses on financial derivatives not designated in hedge relationships:
Losses on interest rate swaps	$	—	$	—	$	—	$	(7,402)	$	(7,402)
Interest expense on interest rate swaps	—		—		—		127		127
Treasury futures	—		—		—		(85)		(85)
Losses on financial derivatives not designated in hedge relationships	$	—	$	—	$	—	$	(7,360)	$	(7,360)

29

	For the Nine Months Ended September 30, 2020
	Net Income/(Expense) Recognized in Consolidated Statement of Operations on Derivatives
	Net Interest Income						Non-Interest Income		Total
	Interest Income Farmer Mac Guaranteed Securities and USDA Securities		Interest Income Loans		Total Interest Expense		Losses on financial derivatives
	(in thousands)
Total amounts presented in the consolidated statement of operations	$	178,644	$	172,230	$	(251,789)	$	(3,339)	$	95,746
Income/(expense) related to interest settlements on fair value hedging relationships:
Recognized on derivatives	(38,781)		(12,607)		16,671		—		(34,717)
Recognized on hedged items	95,366		29,454		(39,325)		—		85,495
Discount amortization recognized on hedged items	—		—		(552)		—		(552)
Income/(expense) related to interest settlements on fair value hedging relationships	$	56,585	$	16,847	$	(23,206)	$	—	$	50,226
(Losses)/gains on fair value hedging relationships:
Recognized on derivatives	$	(264,797)	$	(124,322)	$	52,991	$	—	$	(336,128)
Recognized on hedged items	257,575		119,072		(53,628)		—		323,019
(Losses)/gains on fair value hedging relationships	$	(7,222)	$	(5,250)	$	(637)	$	—	$	(13,109)
Expense related to interest settlements on cash flow hedging relationships:
Interest settlements reclassified from AOCI into net income on derivatives	$	—	$	—	$	(3,817)	$	—	$	(3,817)
Recognized on hedged items	—		—		(3,863)		—		(3,863)
Discount amortization recognized on hedged items	—		—		(6)		—		(6)
Expense recognized on cash flow hedges	$	—	$	—	$	(7,686)	$	—	$	(7,686)
(Losses)/gains on financial derivatives not designated in hedging relationships:
Losses on interest rate swaps	$	—	$	—	$	—	$	(2,415)	$	(2,415)
Interest expense on interest rate swaps	—		—		—		1,143		1,143
Treasury futures	—		—		—		(2,067)		(2,067)
(Losses)/gains on financial derivatives not designated in hedge relationships	$	—	$	—	$	—	$	(3,339)	$	(3,339)

30

	For The Nine Months Ended September 30, 2019
	Net Income/(Expense) Recognized in Consolidated Statement of Operations on Derivatives
	Net Interest Income						Non-Interest Income		Total
	Interest Income Farmer Mac Guaranteed Securities and USDA Securities		Interest Income Loans		Total Interest Expense		Gains on financial derivatives
	(in thousands)
Total amounts presented in the consolidated statement of operations:	$	252,629	$	167,792	$	(358,374)	$	1,193	$	63,240
Income/(expense) related to interest settlements on fair value hedging relationships:
Recognized on derivatives	1,665		(808)		(6,751)		—		(5,894)
Recognized on hedged items	86,628		18,199		(32,594)		—		72,233
Discount amortization recognized on hedged items	—		—		(460)		—		(460)
Income/(expense) related to interest settlements on fair value hedging relationships	$	88,293	$	17,391	$	(39,805)	$	—	$	65,879
Gains/(losses) on fair value hedging relationships:
Recognized on derivatives	$	(262,886)	$	(89,631)	$	27,101	$	—	$	(325,416)
Recognized on hedged items	258,155		83,524		(24,880)		—		316,799
Gains/(losses) on fair value hedging relationships	$	(4,731)	$	(6,107)	$	2,221	$	—	$	(8,617)
Expense related to interest settlements on cash flow hedging relationships:
Interest settlements reclassified from AOCI into net income on derivatives	$	—	$	—	$	1,260	$	—	$	1,260
Recognized on hedged items	—		—		(8,142)		—		(8,142)
Discount amortization recognized on hedged items	—		—		(3)		—		(3)
Expense recognized on cash flow hedges	$	—	$	—	$	(6,885)	$	—	$	(6,885)
Gains on financial derivatives not designated in hedge relationships:
Gains on interest rate swaps	$	—	$	—	$	—	$	5,920	$	5,920
Interest expense on interest rate swaps	—		—		—		(3,321)		(3,321)
Treasury futures	—		—		—		(1,406)		(1,406)
Gains on financial derivatives not designated in hedge relationships	$	—	$	—	$	—	$	1,193	$	1,193

31

The following table shows the carrying amount and associated cumulative basis adjustment related to the application of hedge accounting that is included in the carrying amount of hedged assets and liabilities in fair value hedging relationships as of September 30, 2020 and December 31, 2019:

Table 4.3

	Hedged Items in Fair Value Relationship
	Carrying Amount of Hedged Assets/(Liabilities)				Cumulative Amount of Fair Value Hedging Adjustments included in the Carrying Amount of the Hedged Assets/(Liabilities)
	September 30, 2020		December 31, 2019		September 30, 2020		December 31, 2019
	(in thousands)
Farmer Mac Guaranteed Securities, Available-for-Sale, at fair value(1)	$	4,277,240	$	4,092,611	$	437,777	$	180,215
Loans held for investment, at amortized cost(2)(3)	1,628,241		1,050,335		156,979		37,907
Notes Payable(4)	(2,838,690)		(2,761,052)		(61,149)		(7,433)

(1)Includes $1.6 million of hedging adjustments on discontinued hedging relationships as of September 30, 2020.

(2)Includes $1.4 million of hedging adjustments on a discontinued hedging relationship as of September 30, 2020.

(3)Includes $0.2 million as of September 30, 2020 in fair value adjustment, currently included in "Prepaid expenses and other assets" related to hedge accounting designations of purchase commitments

(4)Carrying amount represents amortized cost.

The following table shows Farmer Mac's credit exposure to interest rate swap counterparties as of September 30, 2020 and December 31, 2019:

Table 4.4

	September 30, 2020
	Gross Amount Recognized(1)		Counterparty Netting		Net Amount Presented in the Consolidated Balance Sheet
	(in thousands)
Assets:
Derivatives
Interest rate swap	$	114,788	$	114,165	$	623
Liabilities:
Derivatives
Interest rate swap	$	718,812	$	714,470	$	4,342

(1)Gross amount excludes netting arrangements and any adjustment for nonperformance risk, but includes accrued interest.

	December 31, 2019
	Gross Amount Recognized(1)		Counterparty Netting		Net Amount Presented in the Consolidated Balance Sheet
	(in thousands)
Assets:
Derivatives
Interest rate swaps	$	56,139	$	53,771	$	2,368
Liabilities:
Derivatives
Interest rate swaps	$	305,584	$	291,326	$	14,258

(1)Gross amount excludes netting arrangements and any adjustment for nonperformance risk, but includes accrued interest.

32

As of September 30, 2020, Farmer Mac held $0.6 million of cash and no investment securities as collateral for its derivatives in net asset positions, compared to $2.7 million of cash and no investment securities as collateral for its derivatives in net asset positions as of December 31, 2019.

Farmer Mac posted $13.6 million cash and $212.1 million of investment securities as of September 30, 2020 and posted $0.5 million cash and $131.7 million investment securities as of December 31, 2019.  Farmer Mac records posted cash as a reduction in the outstanding balance of cash and cash equivalents and an increase in the balance of prepaid expenses and other assets. Any investment securities posted as collateral are included in the investment securities balances on the consolidated balance sheets.  If Farmer Mac had breached certain provisions of the derivative contracts as of September 30, 2020 and December 31, 2019, it could have been required to settle its obligations under the agreements, but would not have been required to post additional collateral. As of September 30, 2020 and December 31, 2019, there were no financial derivatives in a net payable position where Farmer Mac was required to pledge collateral which the counterparty had the right to sell or repledge.

Of Farmer Mac's $15.1 billion notional amount of interest rate swaps outstanding as of September 30, 2020, $12.4 billion were cleared through the swap clearinghouse, the Chicago Mercantile Exchange ("CME"). Of Farmer Mac's $14.0 billion notional amount of interest rate swaps outstanding as of December 31, 2019, $11.0 billion were cleared through the CME. During the first half of 2020 and throughout 2019, Farmer Mac increased its use of non-cleared basis swaps as it began to prepare for the transition away from the use of LIBOR as a reference rate. For more information about interest rate swaps cleared through a clearinghouse, see Note 6 in Farmer Mac's Annual Report on Form 10-K for the fiscal year ended December 31, 2019 filed with the SEC on February 25, 2020.

5.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 basis adjustments. Loans held for sale are reported at the lower of cost or fair value determined on a pooled

basis. During the three months ended September 30, 2020, Farmer Mac acquired $59.2 million in loans held for sale, of which it sold $15.0 million during the quarter, and reclassified $24.2 million as loans held for investment. As of September 30, 2020 and December 31, 2019, Farmer Mac had $20.0 million and no loans held for sale, respectively.

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The following table includes loans held for investment and loans held for sale and displays the composition of the loan balances as of September 30, 2020 and December 31, 2019:

Table 5.1

	As of September 30, 2020(1)						As of December 31, 2019(2)
	Unsecuritized		In Consolidated Trusts		Total		Unsecuritized		In Consolidated Trusts		Total
	(in thousands)
Farm & Ranch	$	4,580,917	$	1,276,407	$	5,857,324	$	3,675,640	$	1,600,917	$	5,276,557
Rural Utilities	2,109,355		—		2,109,355		1,671,293		—		1,671,293
Total unpaid principal balance(3)	6,690,272		1,276,407		7,966,679		5,346,933		1,600,917		6,947,850
Unamortized premiums, discounts, fair value hedge basis adjustment, and other cost basis adjustments	154,789		—		154,789		44,044		—		44,044
Total loans	6,845,061		1,276,407		8,121,468		5,390,977		1,600,917		6,991,894
Allowance for losses	(14,878)		(943)		(15,821)		(8,853)		(1,601)		(10,454)
Total loans, net of allowance	$	6,830,183	$	1,275,464	$	8,105,647	$	5,382,124	$	1,599,316	$	6,981,440

(1)Allowance for losses reflects the adoption of ASU 2016-13, "Financial Instruments - Credit Losses," effective January 1, 2020.

(2)Prior to the adoption of ASU 2016-13, "Financial Instruments - Credit Losses," effective January 1, 2020, Farmer Mac maintained an allowance for losses to cover estimated probable incurred losses on loans held.

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

Allowance for Losses

The following table is a summary, by asset type, of the allowance for losses as of September 30, 2020 and December 31, 2019:

Table 5.2

	September 30, 2020(1)		December 31, 2019(2)
	Allowance for Losses		Allowance for Losses
	(in thousands)
Loans:
Farm & Ranch	$	5,739	$	10,454
Rural Utilities	10,082		—
Total	$	15,821	$	10,454

(1)Allowance for losses reflects the adoption of ASU 2016-13, "Financial Instruments - Credit Losses," effective January 1, 2020.

(2)Prior to the adoption of ASU 2016-13, "Financial Instruments - Credit Losses," effective January 1, 2020, Farmer Mac maintained an allowance for loan losses to cover estimated probable incurred losses on loans held.

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The following is a summary of the changes in the allowance for losses for the three and nine month period ended September 30, 2020 and 2019:

Table 5.3

	For the Three Months Ended				For the Nine Months Ended
	September 30, 2020(1)		September 30, 2019(2)		September 30, 2020(1)		September 30, 2019(2)
	Allowance for Losses		Allowance for Losses		Allowance for Losses		Allowance for Losses
	(in thousands)
Farm & Ranch:
Beginning Balance	$	6,039	$	7,264	$	10,454	$	7,017
Cumulative effect adjustment from adoption of current expected credit loss standard	—		—		(3,909)		—
Adjusted Beginning Balance	6,039		7,264		6,545		7,017
(Release of)/provision for losses	(300)		760		(412)		1,074
Charge-offs	—		—		(394)		(67)
Ending Balance(3)	$	5,739	$	8,024	$	5,739	$	8,024
Rural Utilities:
Beginning Balance	$	8,900	$	—	$	—	$	—
Cumulative effect adjustment from adoption of current expected credit loss standard	—		—		5,378		—
Adjusted Beginning Balance	8,900		—		5,378		—
Provision for losses	1,182		—		4,704		—
Charge-offs	—		—		—		—
Ending Balance(4)	$	10,082	$	—	$	10,082	$	—

(1)Allowance for losses reflects the adoption of ASU 2016-13, "Financial Instruments - Credit Losses," effective January 1, 2020.

(2)Prior to the adoption of ASU 2016-13, "Financial Instruments - Credit Losses," effective January 1, 2020, Farmer Mac maintained an allowance for loan losses to cover estimated probable incurred losses on loans held.

(3)Allowance for losses includes $1.8 million for collateral dependent assets secured by agricultural real estate.

(4)Allowance for losses includes no allowance for collateral dependent assets.

The cumulative transition adjustment decrease of $3.9 million in the Farm & Ranch portfolio was primarily driven by differences in the way that the two loss models measure the impact of low loan-to-value ratios in that portfolio. Under the previous accounting standard, Farmer Mac's estimated incurred loss model was based on historical weighted-average loss rates from realized losses within commodities and risk ratings. The historical weighted average loss rates were then applied to sub-portfolios, as disaggregated by commodity and risk rating, to calculate the general allowance. Under the CECL accounting standard, Farmer Mac's current expected credit losses are calculated individually based on the expected probability of default and the expected loss-given-default for each loan. The low loan-to-value ratios in the Farm & Ranch portfolio result in low individual losses-given-default. Thus, our expected credit losses as of January 1, 2020 were less than our estimate of incurred losses as of December 31, 2019.

The cumulative transition adjustment increase of $5.4 million in the Rural Utilities portfolio was primarily driven by the change from measuring incurred probable credit losses to measuring expected credit losses over the expected lives of these loans. Farmer Mac has never experienced a credit loss in its Rural Utilities portfolio. Additionally, these loans have strong credit ratings and performance, which supported Farmer Mac's estimate of no incurred credit losses under the previous accounting standard. Upon the adoption of CECL, Farmer Mac is now required to measure its expected credit losses for the entire expected life of all

35

financial instruments, including its Rural Utilities loans. To estimate expected credit losses on these loans, Farmer Mac relies upon industry data from ratings agencies and publicly available information as disclosed in the securities filings of other major lenders who serve the utilities industry. Under the CECL accounting standard, Farmer Mac's loss allowance model for these loans is primarily impacted by the long-term maturities of the loans and their low probability of prepayment. In addition, the highly-specialized nature of power generation and transmission and other rural infrastructure facilities results in significant expected losses given default even though the probability of default is low. Thus, the long-term expected lives of these loans combined with high losses given default result in an estimate of expected losses although we have never incurred a credit loss in this portfolio.

The provision to the allowance for loan losses of $0.9 million recorded during third quarter 2020 was primarily due to the impact of net new loan volume in the Rural Utilities portfolio and credit downgrades on existing volume during the quarter. The impact of the Rural Utilities portfolio on the net increase to the provision was partially offset by improving economic factors that uniquely impacted the Farm & Ranch portfolio, specifically continued improvements in commodity prices and continued expectations for stable farm land values.

The provision to the allowance for loan losses of $4.3 million recorded during the nine months ended September 30, 2020 was primarily due to the impact of net new loan volume in the Rural Utilities portfolio and the impact of economic factor forecasts on the Rural Utilities portfolio, especially continued expected higher unemployment, as a result of the COVID-19 pandemic and the resulting economic volatility.

The provision for the allowance for loan losses recorded during three and nine months ended September 30, 2019 was attributable to a decrease in the portfolio credit quality, primarily related to idiosyncratic factors of a few large loans and less related to systemic, macroeconomic factors. The $0.1 million charge-off that occurred during the nine months ended September 30, 2019 related to the foreclosure of one part-time farm loan.

The following table presents the unpaid principal balances by delinquency status of Farmer Mac's loans and non-performing assets as of September 30, 2020:

Table 5.4

	As of September 30, 2020
	Accruing
	Current(5)		30-59 Days		60-89 Days		90 Days and Greater(2)		Total Past Due		Nonaccrual loans(3)(4)		Total Loans
	(in thousands)
Loans(1):
Farm & Ranch	$	5,716,834	$	3,513	$	637	$	6,901	$	11,051	$	129,439	$	5,857,324
Rural Utilities	2,109,355		—		—		—		—		—		2,109,355
Total	$	7,826,189	$	3,513	$	637	$	6,901	$	11,051	$	129,439	$	7,966,679

(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)Includes loans in consolidated trusts with beneficial interests owned by third parties that are 90 days or more past due.

(3)Includes loans 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.

(4)Includes $24.8 million of nonaccrual loans for which there was no associated allowance. During the three and nine months ended September 30, 2020, Farmer Mac received $1.2 million and $3.5 million, respectively, in interest on nonaccrual loans.

(5)Includes $105.3 million of unpaid principal balance related to Farm & Ranch loans that Farmer Mac has executed a COVID-19 payment deferment.

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The following tables present the unpaid principal balances of loans held and the related total allowance for losses by impairment method and commodity type as of December 31, 2019:

Table 5.5

	As of December 31, 2019
	Crops		Permanent Plantings		Livestock		Part-time Farm		Ag. Storage and Processing		Other		Total
	(in thousands)
Ending Balance:
Collectively evaluated for impairment	$	2,664,362	$	1,161,900	$	871,341	$	356,920	$	10,360	$	4,597	$	5,069,480
Individually evaluated for impairment	108,815		51,256		39,962		7,044		—		—		207,077
Total Farm & Ranch loans	$	2,773,177	$	1,213,156	$	911,303	$	363,964	$	10,360	$	4,597	$	5,276,557
Allowance for Losses:
Collectively evaluated for impairment	$	1,880	$	1,362	$	714	$	249	$	47	$	4	$	4,256
Individually evaluated for impairment	2,628		1,008		2,447		115		—		—		6,198
Total Farm & Ranch loans	$	4,508	$	2,370	$	3,161	$	364	$	47	$	4	$	10,454

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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, 2019:

Table 5.6

	As of December 31, 2019
	Crops		Permanent Plantings		Livestock		Part-time Farm		Ag. Storage and Processing		Other		Total
	(in thousands)
Impaired Loans:
With no specific allowance:
Recorded investment	$	30,846	$	16,696	$	3,195	$	1,398	$	—	$	56	$	52,191
Unpaid principal balance	30,741		16,638		3,185		1,394		—		56		52,014
With a specific allowance:
Recorded investment(1)	84,044		36,852		47,113		6,376		—		—		174,385
Unpaid principal balance	83,772		36,732		46,984		6,356		—		—		173,844
Associated allowance	2,725		1,051		2,636		129		—		—		6,541
Total:
Recorded investment	114,890		53,548		50,308		7,774		—		56		226,576
Unpaid principal balance	114,513		53,370		50,169		7,750		—		56		225,858
Associated allowance	2,725		1,051		2,636		129		—		—		6,541
Recorded investment of loans on nonaccrual status(2)	$	34,037	$	22,849	$	28,441	$	2,454	$	—	$	—	$	87,781

(1)Impairment analysis was performed in the aggregate in consideration of similar risk characteristics of the assets and historical statistics on $159.1 million (70%) of impaired loans as of December 31, 2019, which resulted in a specific allowance of $3.0 million.

(2)Includes $30.1 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 three and nine months ended September 30, 2019:

Table 5.7

	September 30, 2019
	Crops		Permanent Plantings		Livestock		Part-time Farm		Ag. Storage and Processing		Other		Total
	(in thousands)
For the Three Months Ended:
Average recorded investment in impaired loans	$	106,535	$	45,197	$	36,859	$	8,265	$	—	$	58	$	196,914
Income recognized on impaired loans	178		166		87		105		—		—		536
For the Nine Months Ended:
Average recorded investment in impaired loans	$	93,088	$	41,524	$	31,189	$	8,079	$	—	$	63	$	173,943
Income recognized on impaired loans	879		586		504		227		—		—		2,196

Net credit losses and 90-day delinquencies as of and for the periods indicated for loans held are presented in the table below.  As of December 31, 2019, 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.

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Table 5.8

	90-Day Delinquencies(1)		Net Credit Losses
	As of		For the Nine Months Ended
	December 31, 2019		September 30, 2019
	(in thousands)
Farm & Ranch loans	$	57,719	$	131

(1)Includes loans 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 $57.7 million of on-balance sheet loans reported as 90-day delinquencies as of December 31, 2019, no loans were subject to "removal-of-account" provisions.

Rural Utilities

As of December 31, 2019, no allowance for losses had been provided for Farmer Mac's Rural Utilities line of business based on the performance of the loans in this line of business and the credit quality of the collateral supporting these loans, as well as Farmer Mac's counterparty risk analysis. As of December 31, 2019, there were no delinquencies or probable losses inherent in Farmer Mac's Rural Utilities loans held or underlying LTSPCs.

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Credit Quality Indicators

The following tables present credit quality indicators related to Farm & Ranch loans and Rural Utilities loans held as of September 30, 2020, by year of origination:

Table 5.9

	As of September 30, 2020
	Year of Origination:
	2020		2019		2018		2017		2016		Prior		Revolving Loans - Amortized Cost Basis		Total
	(in thousands)
Farm & Ranch(1):
Internally Assigned Risk Rating:
Acceptable	$	1,423,112	$	765,367	$	507,218	$	557,095	$	499,642	$	1,157,633	$	472,209	$	5,382,276
Special mention(2)	39,607		124,068		27,757		4,633		10,897		22,236		50,395		279,593
Substandard(3)	7,556		5,926		19,682		57,541		36,490		59,330		8,930		195,455
Total	$	1,470,275	$	895,361	$	554,657	$	619,269	$	547,029	$	1,239,199	$	531,534	$	5,857,324
For the Three Months Ended:
Current period charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Current period recoveries	—		—		—		—		—		—		—		—
Current period Farm & Ranch net charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
For the Nine Months Ended:
Current period charge-offs	$	—	$	—	$	—	$	—	$	—	$	394	$	—	$	394
Current period recoveries	—		—		—		—		—		—		—		—
Current period Farm & Ranch net charge-offs	$	—	$	—	$	—	$	—	$	—	$	394	$	—	$	394

(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.

40

	As of September 30, 2020
	Year of Origination:
	2020		2019		2018		2017		2016		Prior		Revolving Loans - Amortized Cost Basis		Total
	(in thousands)
Rural Utilities(1):
Internally Assigned Risk Rating:
Acceptable	$	502,873	$	819,099	$	8,260	$	92,223	$	31,275	$	638,281	$	12,870	$	2,104,881
Special mention(2)	—		—		—		—		—		—		—		—
Substandard(3)	—		—		—		—		—		4,474		—		4,474
Total	$	502,873	$	819,099	$	8,260	$	92,223	$	31,275	$	642,755	$	12,870	$	2,109,355
For the Three Months Ended:
Current period charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Current period recoveries	—		—		—		—		—		—		—		—
Current period Rural Utilities net charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
For the Nine Months Ended:
Current period charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Current period recoveries	—		—		—		—		—		—		—		—
Current period Rural Utilities net charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

(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.

The following table presents credit quality indicators related to Farm & Ranch loans held as of December 31, 2019:

Table 5.10

	As of December 31, 2019
	Crops		Permanent Plantings		Livestock		Part-time Farm		Ag. Storage and Processing		Other		Total
	(in thousands)
Internally Assigned Risk Rating(1)
Acceptable	$	2,556,956	$	1,050,160	$	825,234	$	343,329	$	10,360	$	4,597	$	4,790,636
Special mention(2)	107,406		111,739		46,107		13,591		—		—		278,843
Substandard(3)	108,815		51,257		39,962		7,044		—		—		207,078
Total	$	2,773,177	$	1,213,156	$	911,303	$	363,964	$	10,360	$	4,597	$	5,276,557
Commodity analysis of past due loans(1)	$	21,167	$	15,828	$	19,354	$	1,370	$	—	$	—	$	57,719

(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.

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6.GUARANTEES

The following table presents the maximum principal amount of potential undiscounted future payments that Farmer Mac could be required to make under all off-balance sheet Farmer Mac Guaranteed Securities as of September 30, 2020 and December 31, 2019, not including offsets provided by any recourse provisions, recoveries from third parties, or collateral for the underlying loans:

Table 6.1

Outstanding Balance of Off-Balance Sheet Farmer Mac Guaranteed Securities
	As of September 30, 2020		As of December 31, 2019
	(in thousands)
Farm & Ranch:
Farmer Mac Guaranteed Securities	$	85,767	$	107,322
USDA Guarantees:
Farmer Mac Guaranteed USDA Securities	310,682		389,216
Institutional Credit:
AgVantage Securities	6,068		7,567
Total off-balance sheet Farmer Mac Guaranteed Securities	$	402,517	$	504,105

Eligible loans and other eligible assets may be placed into trusts that are used as vehicles for the securitization of the transferred assets and the Farmer Mac-guaranteed beneficial interests in the trusts are sold to investors.  The following table summarizes the significant cash flows received from and paid to trusts used for Farmer Mac securitizations:

Table 6.2

	For the Nine Months Ended
	September 30, 2020		September 30, 2019
	(in thousands)
Proceeds from new securitizations	$	64,612	$	199,396
Guarantee fees received	1,136		1,122

Farmer Mac presents a liability for its obligation to stand ready under its guarantee in "Guarantee and commitment obligation" on the consolidated balance sheets.  The following table presents the liability and the weighted-average remaining maturity of all loans underlying off-balance sheet Farmer Mac Guaranteed Securities:

Table 6.3

	As of September 30, 2020		As of December 31, 2019
	(dollars in thousands)
Guarantee and commitment obligation	$	1,780	$	2,230
Weighted average remaining maturity:
Farmer Mac Guaranteed Securities	9.5 years		9.8 years
AgVantage Securities	4.2 years		5.0 years

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Long-Term Standby Purchase Commitments

Farmer Mac has recorded a liability for its obligation to stand ready under the guarantee in the guarantee and commitment obligation on the consolidated balance sheets.  The following table presents the liability, the maximum principal amount of potential undiscounted future payments that Farmer Mac could be requested to make under all LTSPCs, not including offsets provided by any recourse provisions, recoveries from third parties, or collateral for the underlying loans, as well as the weighted-average remaining maturity of all loans underlying LTSPCs:

Table 6.4

	As of September 30, 2020		As of December 31, 2019
	(dollars in thousands)
Guarantee and commitment obligation(1)	$	33,360	$	34,470
Maximum principal amount	2,882,212		3,002,349
Weighted-average remaining maturity	15.1 years		15.2 years

(1) Relates to LTSPCs issued or modified on or after January 1, 2003.

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Reserve for Losses

The following table is a summary, by asset type, of the reserve for losses as of September 30, 2020 and December 31, 2019:

Table 6.5

	September 30, 2020(1)		December 31, 2019(2)
	Reserve for Losses		Reserve for Losses
	(in thousands)
Farm & Ranch:
LTSPCs and Farmer Mac Guaranteed Securities	$	2,278	$	2,164
Rural Utilities
LTSPCs	1,290		—
Total	$	3,568	$	2,164

(1)Reserve for losses reflects the adoption of ASU 2016-13, "Financial Instruments - Credit Losses," in first quarter 2020.

(2)Prior to the adoption of ASU 2016-13, "Financial Instruments - Credit Losses," in first quarter 2020, Farmer Mac maintained a reserve for losses to cover estimated probable incurred losses on loans underlying LTSPCs and off-balance sheet Farm & Ranch Farmer Mac Guaranteed Securities.

The following is a summary of the changes in the reserve for losses for the three and nine month period ended September 30, 2020 and 2019:

Table 6.6

	For the Three Months Ended				For the Nine Months Ended
	September 30, 2020(1)		September 30, 2019(2)		September 30, 2020(1)		September 30, 2019(2)
	Reserve for Losses		Reserve for Losses		Reserve for Losses		Reserve for Losses
	(in thousands)
Farm & Ranch:
Beginning Balance	$	1,650	$	1,880	$	2,164	$	2,167
Cumulative effect adjustment from adoption of current expected credit loss standard	—		—		(148)		—
Adjusted Beginning Balance	1,650		1,880		2,016		2,167
Provision for/(release of) losses	$	628	$	(137)	$	262	$	(424)
Ending Balance	$	2,278	$	1,743	$	2,278	$	1,743
Rural Utilities:
Beginning Balance	$	1,370	$	—	$	—	$	—
Cumulative effect adjustment from adoption of current expected credit loss standard	—		—		1,011		—
Adjusted Beginning Balance	1,370		—		1,011		—
(Release of)/provision for losses	$	(80)	$	—	$	279	$	—
Ending Balance	$	1,290	$	—	$	1,290	$	—

(1)Reserve for losses reflects the adoption of ASU 2016-13, "Financial Instruments - Credit Losses," in first quarter 2020.

(2)Prior to the adoption of ASU 2016-13, "Financial Instruments - Credit Losses," in first quarter 2020, Farmer Mac maintained a reserve for losses to cover estimated probable incurred losses on loans underlying LTSPCs and off-balance sheet Farm & Ranch Farmer Mac Guaranteed Securities.

The provision to the reserve for losses recorded during the three and nine months ended September 30, 2020 was primarily due to credit downgrades in the LTSPC portfolio.

44

The release from the reserve for losses recorded during third quarter 2019 was primarily attributable to a net volume decrease in off-balance sheet Farm & Ranch LTSPCs and slight improvements in off-balance sheet portfolio credit quality.

The following table presents the unpaid principal balances by delinquency status of Farm & Ranch loans underlying LTSPCs. Farm & Ranch Farmer Mac Guaranteed Securities, Rural Utilities loans underlying LTSPCs, and non-performing assets as of September 30, 2020:

Table 6.7

	As of September 30, 2020
	Current(2)		30-59 Days		60-89 Days		90 Days and Greater(1)		Total Past Due		Total Loans
	(in thousands)
Farm and Ranch:
LTSPCs and Farmer Mac Guaranteed Securities	$	2,352,454	$	2,934	$	22,690	$	13,947	$	39,571	$	2,392,025
Rural Utilities:
LTSPCs	$	575,954	$	—	$	—	$	—	$	—	$	575,954

(1)Includes loans underlying off-balance sheet Farm & Ranch Guaranteed Securities and LTSPCs that are 90 days of 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.

(2)Includes $185.4 million of unpaid principal balance related to Farm & Ranch LTSPCs for which the lender has notified Farmer Mac of an executed COVID-19 payment deferment.

The following tables present the unpaid principal balances of Farm & Ranch loans underlying LTSPCs and off-balance sheet Farmer Mac Guaranteed Securities (excluding AgVantage securities) and the related reserve for losses by impairment method and commodity type as of December 31, 2019:

Table 6.8

	As of December 31, 2019
	Crops		Permanent Plantings		Livestock		Part-time Farm		Ag. Storage and Processing		Other		Total
	(in thousands)
Ending Balance:
Collectively evaluated for impairment:	$	1,151,983	$	511,991	$	581,377	$	167,395	$	66,106	$	2,760	$	2,481,612
Individually evaluated for impairment:	5,698		2,114		10,207		706		—		56		18,781
Total Farm & Ranch	$	1,157,681	$	514,105	$	591,584	$	168,101	$	66,106	$	2,816	$	2,500,393
Allowance for Losses:
Collectively evaluated for impairment:	$	599	$	96	$	308	$	50	$	767	$	1	$	1,821
Individually evaluated for impairment:	97		43		189		14		—		—		343
Total Farm & Ranch	$	696	$	139	$	497	$	64	$	767	$	1	$	2,164

45

Net credit losses and 90-day delinquencies as of and for the periods indicated for loans underlying off-balance sheet securities representing interests in pools of eligible Farm & Ranch LTSPCs are presented in the table below.  As of December 31, 2019, there were no delinquencies and no probable losses inherent in Farmer Mac's Rural Utilities LTSPCs portfolio and Farmer Mac had not experienced credit losses on any Rural Utilities LTSPCs.

Table 6.9

	90-Day Delinquencies(1)		Net Credit Losses/(Recoveries)
	As of		For the Nine Months Ended
	December 31, 2019		September 30, 2019
	(in thousands)
Farm & Ranch LTSPCs and Farmer Mac Guaranteed Securities	$	3,235	$	—

(1)Includes 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.

Credit Quality Indicators

The following tables present credit quality indicators related to Farm & Ranch loans underlying LTSPCs, Farm & Ranch Farmer Mac Guaranteed Securities, and Rural Utilities loans underlying LTSPCs as of September 30, 2020, by year of origination:

Table 6.10

	As of September 30, 2020
	Year of Origination:
	2020		2019		2018		2017		2016		Prior		Revolving Loans - Amortized Cost Basis		Total
	(in thousands)
Farm & Ranch LTSPCs and Farmer Mac Guaranteed Securities:
Internally Assigned Risk Rating:
Acceptable	$	118,116	$	207,202	$	184,421	$	245,490	$	216,983	$	1,021,400	$	173,617	$	2,167,229
Special mention(1)	—		1,742		1,509		23,200		14,628		47,948		10,040		99,067
Substandard(2)	264		10,821		12,676		15,614		14,401		67,338		4,615		125,729
Total	$	118,380	$	219,765	$	198,606	$	284,304	$	246,012	$	1,136,686	$	188,272	$	2,392,025
For the Three Months Ended:
Current period charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Current period recoveries	—		—		—		—		—		—		—		—
Current period Farm & Ranch net charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
For the Nine Months Ended:
Current period charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Current period recoveries	—		—		—		—		—		—		—		—
Current period Farm & Ranch net charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

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

46

(2)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 September 30, 2020
	Year of Origination:
	2020		2019		2018		2017		2016		Prior		Revolving Loans - Amortized Cost Basis		Total
	(in thousands)
Rural Utilities LTSPCs:
Internally Assigned Risk Rating:
Acceptable	$	—	$	—	$	—	$	—	$	—	$	569,324	$	6,630	$	575,954
Special mention(1)	—		—		—		—		—		—		—		—
Substandard(2)	—		—		—		—		—		—		—		—
Total	$	—	$	—	$	—	$	—	$	—	$	569,324	$	6,630	$	575,954
For the Three Months Ended
Current period charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Current period recoveries	—		—		—		—		—		—		—		—
Current period Rural Utilities net charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
For the Nine Months Ended:
Current period charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Current period recoveries	—		—		—		—		—		—		—		—
Current period Rural Utilities net charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

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

(2)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.

The following table presents credit quality indicators related to Farm & Ranch loans underlying LTSPCs and off-balance sheet Farm & Ranch Farmer Mac Guaranteed Securities as of December 31, 2019:

Table 6.11

	As of December 31, 2019
	Crops		Permanent Plantings		Livestock		Part-time Farm		Ag. Storage and Processing		Other		Total
	(in thousands)
Internally Assigned Risk Rating(1)
Acceptable	$	1,033,002	$	484,601	$	521,341	$	161,361	$	66,106	$	2,594	$	2,269,005
Special mention(2)	68,372		22,909		35,618		1,612		—		—		128,511
Substandard(3)	56,307		6,595		34,625		5,128		—		222		102,877
Total	$	1,157,681	$	514,105	$	591,584	$	168,101	$	66,106	$	2,816	$	2,500,393
Commodity analysis of past due loans(1)	$	1,493	$	196	$	1,066	$	480	$	—	$	—	$	3,235

(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.

47

7.NOTES PAYABLE

Farmer 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 September 30, 2020 and December 31, 2019:

Table 7.1

	September 30, 2020
	Outstanding as of September 30				Average Outstanding During the First Nine Months
	Amount		Weighted- Average Rate		Amount		Weighted- Average Rate
	(dollars in thousands)
Due within one year:
Discount notes	$	2,358,943	0.21	%	$	2,313,477	0.79	%
Medium-term notes	2,065,148		0.27	%	1,312,909		0.81	%
Current portion of medium-term notes	6,510,992		0.90	%
Total due within one year	$	10,935,083	0.63	%
Due after one year:
Medium-term notes due in:
Two years	$	3,277,494	0.96	%
Three years	2,326,812		1.44	%
Four years	1,056,062		1.73	%
Five years	1,242,150		1.35	%
Thereafter	2,751,684		2.07	%
Total due after one year	10,654,202		1.47	%
Total	$	21,589,285	1.05	%

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	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 nine months ended September 30, 2020, Farmer Mac 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 nine months ended September 30, 2020 and 2019 was $2.6 billion and $2.2 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 September 30, 2020:

Table 7.2

Debt Callable in 2020 as of September 30, 2020, by Maturity
	Amount		Weighted-Average Rate
	(dollars in thousands)
Maturity:
2021	$	215,949	0.17	%
2022	122,918		0.59	%
2023	127,863		0.47	%
2024	59,941		1.33	%
Thereafter	374,144		1.84	%
Total	$	900,815	1.04	%

The following schedule summarizes the earliest interest rate reset date, or debt maturities, of total borrowings outstanding as of September 30, 2020, including callable and non-callable medium-term notes, assuming callable notes are redeemed at the initial call date:

49

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	$	10,523,446	0.31	%
2021	3,219,231		1.55	%
2022	1,787,566		1.59	%
2023	2,026,445		1.62	%
2024	919,753		1.77	%
Thereafter	3,112,844		2.09	%
Total	$	21,589,285	1.05	%

During the nine months ended September 30, 2020 and 2019, Farmer Mac called $2.7 billion and $0.7 billion of callable medium-term notes, respectively. The decrease in market interest rates throughout 2019 and continuing into the first half of 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, upon satisfying certain conditions, 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 September 30, 2020, Farmer Mac had not used this borrowing authority.

Gains on Repurchase of Outstanding Debt

No outstanding debt repurchases were made in the nine months ended September 30, 2020 or 2019.

8.EQUITY

Preferred Stock

On August 20, 2020, Farmer Mac issued 4.8 million shares of 5.250% Non-Cumulative Preferred Stock, Series F ("Series F Preferred Stock"), which has a par value and liquidation preference of $25.00 per share, or $120.0 million aggregate outstanding. Farmer Mac incurred direct costs of $3.8 million related to the issuance of the Series F Preferred Stock. The dividend rate on the Series F Preferred Stock will remain at a non-cumulative, fixed rate of 5.250% per year, when, as, and if a dividend is declared by the Board of Directors of Farmer Mac, for so long as the Series F Preferred Stock remains outstanding. The Series F Preferred Stock has no maturity date, but Farmer Mac has the option to redeem the Series F Preferred Stock at any time on any dividend payment date on and after October 17, 2025.

50

On September 19, 2020, Farmer Mac used part of the net proceeds from the sale of the Series F Preferred Stock to redeem and repurchase all $60.0 million aggregate outstanding of Farmer Mac's 5.875% Non-Cumulative Preferred Stock, Series A ("Series A Preferred Stock"), plus any declared and unpaid dividends through and including the redemption date. As a result of the retirement of the Series A Preferred Stock, Farmer Mac recognized $1.7 million of deferred issuance costs, which is presented as "Loss on retirement of preferred stock" on the consolidated statements of operations.

In May 2020, Farmer Mac issued 3.18 million shares of 5.750% Non-Cumulative Preferred Stock, Series E ("Series E Preferred Stock"), which has a par value and liquidation preference of $25.00 per share, or $79.5 million aggregate outstanding. Farmer Mac incurred direct costs of $2.5 million related to the issuance of the Series E Preferred Stock. The dividend rate on the Series E Preferred Stock will remain at a non-cumulative, fixed rate of 5.750% per year, when, as, and if a dividend is declared by the Board of Directors of Farmer Mac, for so long as the Series E Preferred Stock remains outstanding. The Series E Preferred Stock has no maturity date, but Farmer Mac has the option to redeem the preferred stock at any time on any dividend payment date on and after July 17, 2025.

Common Stock

During each of the first, second, and third quarters in 2020, Farmer Mac paid a quarterly dividend of $0.80 per share on all classes of its common stock. For each quarter in 2019, Farmer Mac paid a quarterly dividend of $0.70 per share on all classes of its common stock.

Farmer Mac's board of directors approved a share repurchase program during third quarter 2015 authorizing Farmer Mac to repurchase up to $25.0 million of its outstanding Class C non-voting common stock. The share repurchase program, last modified on March 14, 2019, authorized Farmer Mac to repurchase up to $10.0 million of Farmer Mac's outstanding Class C non-voting common stock. During first quarter 2020, Farmer Mac repurchased approximately 4,000 shares of Class C non-voting common stock at a cost of approximately $0.2 million. Shortly after these repurchases were completed, Farmer Mac indefinitely suspended its share repurchase program in an effort to preserve capital and liquidity in view of market volatility and uncertainty caused by the COVID-19 pandemic. As of September 30, 2020, Farmer Mac had repurchased approximately 673,000 shares of Class C non-voting common stock at a cost of approximately $19.8 million under the share repurchase program since 2015. The program expires at the end of March 2021.

Capital Requirements

Farmer Mac is required to comply with the higher of the minimum capital requirement and the risk-based capital requirement. As of both September 30, 2020 and December 31, 2019, the minimum capital requirement was greater than the risk-based capital requirement. Farmer Mac's ability to declare and pay dividends could be restricted if it fails to comply with applicable capital requirements.

As of September 30, 2020, Farmer Mac's minimum capital requirement was $670.0 million and its core capital level was $984.2 million, which was $314.2 million above the minimum capital requirement as of that date. As of December 31, 2019, Farmer Mac's minimum capital requirement was $618.8 million and its core capital level was $815.4 million, which was $196.6 million above the minimum capital requirement as of that date.

51

In accordance with the Farm Credit Administration's rule on Farmer Mac's capital planning, and as part of Farmer Mac's capital plan, Farmer Mac has adopted a policy for maintaining a sufficient level of Tier 1 capital (consisting of retained earnings, paid-in-capital, common stock, and qualifying preferred stock) and imposing restrictions on Tier 1-eligible dividends and any discretionary bonus payments in the event that this capital falls below specified thresholds.

9.FAIR VALUE DISCLOSURES

Fair Value Classification and Transfers

The following tables present information about Farmer Mac's assets and liabilities measured at fair value on a recurring basis as of September 30, 2020 and December 31, 2019, respectively, and indicate the fair value hierarchy of the valuation techniques used by Farmer Mac to determine such fair value:

Table 9.1

Assets and Liabilities Measured at Fair Value as of September 30, 2020
	Level 1		Level 2		Level 3(1)		Total
	(in thousands)
Recurring:
Assets:
Investment Securities:
Available-for-sale:
Floating rate auction-rate certificates backed by Government guaranteed student loans	$	—	$	—	$	19,072	$	19,072
Floating rate asset-backed securities	—		9,201		—		9,201
Floating rate Government/GSE guaranteed mortgage-backed securities	—		2,286,033		—		2,286,033
Fixed rate GSE guaranteed mortgage-backed securities	—		318		—		318
Fixed rate U.S. Treasuries	1,217,566		—		—		1,217,566
Total Investment Securities	1,217,566		2,295,552		19,072		3,532,190
Farmer Mac Guaranteed Securities:
Available-for-sale:
AgVantage	—		—		7,511,638		7,511,638
Total Farmer Mac Guaranteed Securities	—		—		7,511,638		7,511,638
USDA Securities:
Trading	—		—		6,830		6,830
Total USDA Securities	—		—		6,830		6,830
Financial derivatives	9		12,828		—		12,837
Total Assets at fair value	$	1,217,575	$	2,308,380	$	7,537,540	$	11,063,495
Liabilities:
Financial derivatives	$	—	$	37,357	$	—	$	37,357
Total Liabilities at fair value	$	—	$	37,357	$	—	$	37,357
Non-recurring:
Assets
Loans held for sale	$	—	$	—	$	22,086	$	22,086
Total non-recurring assets at fair value	$	—	$	—	$	22,086	$	22,086

(1) Level 3 assets represent 32% of total assets and 68% of financial instruments measured at fair value.

52

Assets and Liabilities Measured at Fair Value as of December 31, 2019
	Level 1		Level 2		Level 3(1)		Total
	(in thousands)
Recurring:
Assets:
Investment Securities:
Available-for-sale:
Floating rate auction-rate certificates backed by Government guaranteed student loans	$	—	$	—	$	18,912	$	18,912
Floating rate asset-backed securities	—		11,085		—		11,085
Floating rate Government/GSE guaranteed mortgage-backed securities	—		1,632,583		—		1,632,583
Fixed rate GSE guaranteed mortgage-backed securities	—		340		—		340
Fixed rate U.S. Treasuries	1,296,923		—		—		1,296,923
Total available-for-sale	1,296,923		1,644,008		18,912		2,959,843
Farmer Mac Guaranteed Securities:
Available-for-sale:
AgVantage	—		—		7,143,025		7,143,025
Total Farmer Mac Guaranteed Securities	—		—		7,143,025		7,143,025
USDA Securities:
Trading	—		—		8,913		8,913
Total USDA Securities	—		—		8,913		8,913
Financial derivatives	—		10,519		—		10,519
Total Assets at fair value	$	1,296,923	$	1,654,527	$	7,170,850	$	10,122,300
Liabilities:
Financial derivatives	$	51	$	26,991	$	—	$	27,042
Total Liabilities at fair value	$	51	$	26,991	$	—	$	27,042

(1) Level 3 assets represent 33% of total assets and 71% of financial instruments measured at fair value.

There were no significant assets or liabilities measured at fair value on a non-recurring basis as of September 30, 2020 or December 31, 2019.

Transfers in and/or out of the different levels within the fair value hierarchy are based on the fair values of the assets and liabilities as of the beginning of the reporting period. During the first nine months of 2020 and 2019, there were no transfers within the fair value hierarchy for fair value measurements of Farmer Mac's investment securities, Farmer Mac Guaranteed Securities, USDA Securities, and financial derivatives.

53

The following tables present additional information about assets and liabilities measured at fair value on a recurring basis for which Farmer Mac has used significant unobservable inputs to determine fair value. Net transfers in and/or out of Level 3 are based on the fair values of the assets and liabilities as of the beginning of the reporting period. There were no liabilities measured at fair value using significant unobservable inputs during the three and nine months ended September 30, 2020 and 2019.

Table 9.2

Level 3 Assets and Liabilities Measured at Fair Value for the Three Months Ended September 30, 2020
	Beginning Balance		Purchases		Sales		Settlements		Allowance for losses		Realized and unrealized gains/(losses) included in Income		Unrealized gains/(losses) included in Other Comprehensive Income		Ending Balance
	(in thousands)
Recurring:
Assets:
Investment Securities:
Available-for-sale:
Floating rate auction-rate certificates backed by Government guaranteed student loans	$	18,283	$	—	$	—	$	—	$	1	$	—	$	788	$	19,072
Total available-for-sale	18,283		—		—		—		1		—		788		19,072
Farmer Mac Guaranteed Securities:
Available-for-sale:
AgVantage	7,898,387		122,892		—		(513,864)		(96)		(41,832)		46,151		7,511,638
Total available-for-sale	7,898,387		122,892		—		(513,864)		(96)		(41,832)		46,151		7,511,638
USDA Securities:
Trading	7,786		—		—		(697)		—		(259)		—		6,830
Total USDA Securities	7,786		—		—		(697)				(259)		—		6,830
Total Assets at fair value	$	7,924,456	$	122,892	$	—	$	(514,561)	$	(95)	$	(42,091)	$	46,939	$	7,537,540

54

Level 3 Assets and Liabilities Measured at Fair Value for the Three Months Ended September 30, 2019
	Beginning Balance		Purchases		Sales		Settlements		Realized and unrealized gains/(losses) included in Income		Unrealized gains/(losses) included in Other Comprehensive Income		Ending Balance
	(in thousands)
Recurring:
Assets:
Investment Securities:
Available-for-sale:
Floating rate auction-rate certificates backed by Government guaranteed student loans	$	19,208	$	—	$	—	$	—	$	—	$	—	$	19,208
Total available-for-sale	19,208		—		—		—		—		—		19,208
Farmer Mac Guaranteed Securities:
Available-for-sale:
AgVantage	7,035,668		340,148		—		(254,593)		84,164		(22,846)		7,182,541
Total available-for-sale	7,035,668		340,148		—		(254,593)		84,164		(22,846)		7,182,541
USDA Securities:
Available-for-sale	—		9,506		(9,506)		—		—		—		—
Trading	9,201		—		—		(307)		49		—		8,943
Total USDA Securities	9,201		9,506		(9,506)		(307)		49		—		8,943
Total Assets at fair value	$	7,064,077	$	349,654	$	(9,506)	$	(254,900)	$	84,213	$	(22,846)	$	7,210,692

Level 3 Assets and Liabilities Measured at Fair Value for the Nine Months Ended September 30, 2020
	Beginning Balance		Purchases		Sales		Settlements		Allowance for Losses		Realized and unrealized gains/(losses) included in Income		Unrealized gains/(losses) included in Other Comprehensive Income		Ending Balance
	(in thousands)
Recurring:
Assets:
Investment Securities:
Available-for-sale:
Floating rate auction-rate certificates backed by Government guaranteed student loans	$	18,912	$	—	$	—	$	—	$	(37)	$	—	$	197	$	19,072
Total available-for-sale	18,912		—		—		—		(37)		—		197		19,072
Farmer Mac Guaranteed Securities:
Available-for-sale:
AgVantage	7,143,025		958,368		—		(826,380)		(330)		257,597		(20,642)		7,511,638
Total available-for-sale	7,143,025		958,368		—		(826,380)		(330)		257,597		(20,642)		7,511,638
USDA Securities:
Trading	8,913		—		—		(1,910)		—		(173)		—		6,830
Total USDA Securities	8,913		—		—		(1,910)				(173)		—		6,830
Total Assets at fair value	$	7,170,850	$	958,368	$	—	$	(828,290)	$	(367)	$	257,424	$	(20,445)	$	7,537,540

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Level 3 Assets and Liabilities Measured at Fair Value for the Nine Months Ended September 30, 2019
	Beginning Balance		Purchases		Sales		Settlements		Realized and unrealized gains/(losses) included in Income		Unrealized gains/(losses) included in Other Comprehensive Income		Ending Balance
	(in thousands)
Recurring:
Assets:
Investment Securities:
Available-for-sale:
Floating rate auction-rate certificates backed by Government guaranteed student loans	$	18,715	$	—	$	—	$	—	$	—	$	493	$	19,208
Total available-for-sale	18,715		—		—		—		—		493		19,208
Farmer Mac Guaranteed Securities:
Available-for-sale:
AgVantage	5,974,497		1,730,244		—		(724,906)		258,155		(55,449)		7,182,541
Total available-for-sale	5,974,497		1,730,244		—		(724,906)		258,155		(55,449)		7,182,541
USDA Securities:
Available-for-sale	—		57,853		(57,853)		—		—		—		—
Trading	9,999		—		—		(1,210)		154		—		8,943
Total USDA Securities	9,999		57,853		(57,853)		(1,210)		154		—		8,943
Total Assets at fair value	$	6,003,211	$	1,788,097	$	(57,853)	$	(726,116)	$	258,309	$	(54,956)	$	7,210,692

The following tables present additional information about the significant unobservable inputs, such as discount rates and constant prepayment rates ("CPR"), used in the fair value measurements categorized in Level 3 of the fair value hierarchy as of September 30, 2020 and December 31, 2019:

Table 9.3

	As of September 30, 2020
Financial Instruments	Fair Value		Valuation Technique	Unobservable Input	Range (Weighted-Average)
	(in thousands)
Assets:
Investment securities:
Floating rate auction-rate certificates backed by Government guaranteed student loans	$	19,072	Indicative bids	Range of broker quotes	97.0% - 97.0% (97.0%)
Farmer Mac Guaranteed Securities:
AgVantage	$	7,511,638	Discounted cash flow	Discount rate	0.8% - 2.3% (1.2%)
USDA Securities	$	6,830	Discounted cash flow	Discount rate	1.3% - 3.3% (2.6%)
				CPR	23% - 49% (43%)

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	As of December 31, 2019
Financial Instruments	Fair Value		Valuation Technique	Unobservable Input	Range (Weighted-Average)
	(in thousands)
Assets:
Investment securities:
Floating rate auction-rate certificates backed by Government guaranteed student loans	$	18,912	Indicative bids	Range of broker quotes	96.0% - 96.0% (96.0%)
Farmer Mac Guaranteed Securities:
AgVantage	$	7,143,025	Discounted cash flow	Discount rate	2.3% - 5.5% (2.6%)
USDA Securities	$	8,913	Discounted cash flow	Discount rate	2.3% - 2.6% (2.1%)
				CPR	10% - 21% (19%)

The significant unobservable input used in the fair value measurements of AgVantage Farmer Mac Guaranteed Securities is the discount rate commensurate with the risks involved. Typically, significant increases (decreases) in this input in isolation may result in materially lower (higher) fair value measurements. Generally, in a rising interest rate environment, Farmer Mac would expect average discount rates to increase. Conversely, in a declining interest rate environment, Farmer Mac would expect average discount rates to decrease. Prepayment rates are not presented in the table above for AgVantage securities because they generally have fixed maturity dates when the secured general obligations are due and don't prepay.

The significant unobservable inputs used in the fair value measurements of USDA Securities are the prepayment rate and discount rate commensurate with the risks involved. Typically, significant increases (decreases) in any of these inputs in isolation may result in materially lower (higher) fair value measurements. Generally, in a rising interest rate environment, Farmer Mac would expect average discount rates to increase and would likely expect a corresponding decrease in forecasted prepayment rates. Conversely, in a declining interest rate environment, Farmer Mac would expect average discount rates to decrease and would likely expect a corresponding increase in forecasted prepayment rates.

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Disclosures on Fair Value of Financial Instruments

The following table sets forth the estimated fair values and carrying values for financial assets, liabilities, and guarantees and commitments as of September 30, 2020 and December 31, 2019:

Table 9.4

	As of September 30, 2020				As of December 31, 2019
	Fair Value		Carrying Amount		Fair Value		Carrying Amount
	(in thousands)
Financial assets:
Cash and cash equivalents	$	910,592	$	910,592	$	604,381	$	604,381
Investment securities	3,578,375		3,577,222		3,005,828		3,004,875
Farmer Mac Guaranteed Securities	8,739,103		8,712,208		8,606,451		8,590,476
USDA Securities	2,522,001		2,417,678		2,294,671		2,241,073
Loans	8,450,522		8,105,647		7,317,091		6,981,440
Financial derivatives	12,837		12,837		10,519		10,519
Guarantee and commitment fees receivable	34,801		36,664		36,732		38,442
Financial liabilities:
Notes payable	21,893,043		21,589,285		19,234,079		19,098,648
Debt securities of consolidated trusts held by third parties	1,337,741		1,292,416		1,663,177		1,616,504
Financial derivatives	37,357		37,357		27,042		27,042
Guarantee and commitment obligations	33,278		35,140		34,990		36,700

The carrying value of cash and cash equivalents is a reasonable estimate of their approximate fair value and is classified as Level 1. The fair value of investments in U.S. Treasuries are valued based on unadjusted quoted prices in active markets and are classified as Level 1. A significant portion of Farmer Mac's investment portfolio is valued using a reputable nationally recognized third-party pricing service. The prices obtained are non-binding and generally representative of recent market trades and are classified as Level 2. Farmer Mac internally models the fair value of its loan portfolio, including loans held for investment and loans held for investment in consolidated trusts, Farmer Mac Guaranteed Securities, and USDA Securities by discounting the projected cash flows of these instruments at projected interest rates. The fair values are based on the present value of expected cash flows using management's best estimate of certain key assumptions, which include prepayment speeds, forward yield curves and discount rates commensurate with the risks involved. These fair value measurements do not take into consideration the fair value of the underlying property and are classified as Level 3. Financial derivatives primarily are valued using unadjusted counterparty valuations and are classified as Level 2. The fair value of the guarantee fees receivable/obligation and debt securities of consolidated trusts are estimated based on the present value of expected future cash flows of the underlying mortgage assets using management's best estimate of certain key assumptions, which include prepayments speeds, forward yield curves, and discount rates commensurate with the risks involved and are classified as Level 3. Notes payable are valued by discounting the expected cash flows of these instruments using a yield curve derived from market prices observed for similar agency securities and are also classified as Level 3. Because the cash flows of Farmer Mac's financial instruments may be interest rate path dependent, estimated fair values and projected discount rates for Level 3 financial instruments are derived using a Monte Carlo simulation model. Different market assumptions and estimation methodologies could significantly affect estimated fair value amounts.

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10.BUSINESS SEGMENT REPORTING

The following tables present core earnings for Farmer Mac's operating segments and a reconciliation to consolidated net income for the three and nine months ended September 30, 2020 and 2019:

Table 10.1

Core Earnings by Business Segment
For the Three Months Ended September 30, 2020
	Farm & Ranch		USDA Guarantees		Rural  Utilities		Institutional Credit		Corporate		Reconciling Adjustments			Consolidated Net Income
	(in thousands)
Net interest income	$	18,093	$	4,747	$	5,709	$	14,171	$	1,941	$	—		$	44,661
Less: reconciling adjustments(1)(2)(3)	(68)		1,118		1,230		4,430		431		(7,141)			—
Net effective spread	18,025		5,865		6,939		18,601		2,372		(7,141)			—
Guarantee and commitment fees(2)	4,111		213		328		7		—		(1,500)			3,159
Other income/(expense)(3)	443		135		—		—		(125)		(681)			(228)
Non-interest income/(loss)	4,554		348		328		7		(125)		(2,181)			2,931
Release of/(provision for) losses	300		—		(1,182)		228		1		—			(653)
(Provision for)/release of reserve for losses	(628)		—		81		—		—		—			(547)
Other non-interest expense	(5,381)		(1,643)		(1,438)		(2,160)		(3,938)		—			(14,560)
Non-interest expense(4)	(6,009)		(1,643)		(1,357)		(2,160)		(3,938)		—			(15,107)
Core earnings before income taxes	16,870		4,570		4,728		16,676		(1,690)		(9,322)		(5)	31,832
Income tax (expense)/benefit	(3,543)		(960)		(993)		(3,502)		701		1,957			(6,340)
Core earnings before preferred stock dividends	13,327		3,610		3,735		13,174		(989)		(7,365)		(5)	25,492
Preferred stock dividends	—		—		—		—		(5,166)		—			(5,166)
Loss on retirement of preferred stock	—		—		—		—		—		(1,667)			(1,667)
Segment core earnings/(losses)	$	13,327	$	3,610	$	3,735	$	13,174	$	(6,155)	$	(9,032)	(5)	$	18,659
Total assets at carrying value	$	5,961,307	$	2,487,687	$	2,256,011	$	8,716,923	$	4,576,909	$	—		$	23,998,837
Total on- and off-balance sheet program assets at principal balance	$	8,249,349	$	2,735,128	$	2,685,309	$	8,319,502	$	—	$	—		$	21,989,288

(1)Includes the amortization of premiums and discounts on assets consolidated at fair value, originally included in interest income, to reflect core earnings amounts.

(2)Includes the reclassification of interest income and interest expense from consolidated trusts owned by third parties to guarantee and commitment fees, to reflect management's view that the net interest income Farmer Mac earns is effectively a guarantee fee.

(3)Includes the reclassification of interest expense related to interest rate swaps not designated as hedges, which are included in "(Losses)/gains on financial derivatives" on the consolidated financial statements, to determine the effective funding cost for each operating segment.

(4)Includes directly attributable costs and an allocation of indirectly attributable costs based on employee headcount.

(5)Net adjustments to reconcile to the corresponding income measures: core earnings before income taxes reconciled to income before income taxes; core earnings before preferred stock dividends reconciled to net income; and segment core earnings reconciled to net income attributable to common stockholders.

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Core Earnings by Business Segment
For the Three Months Ended September 30, 2019
	Farm & Ranch		USDA Guarantees		Rural  Utilities		Institutional Credit		Corporate		Reconciling Adjustments			Consolidated Net Income
	(in thousands)
Net interest income	$	15,345	$	4,491	$	2,602	$	14,853	$	2,821	$	—		$	40,112
Less: reconciling adjustments(1)(2)(3)	(2,164)		(177)		1,900		2,954		(164)		(2,349)			—
Net effective spread	13,181		4,314		4,502		17,807		2,657		(2,349)			—
Guarantee and commitment fees(2)	4,523		250		348		87		—		(1,859)			3,349
Other income/(expense)(3)	390		92		17		—		(110)		(7,170)			(6,781)
Non-interest income/(loss)	4,913		342		365		87		(110)		(9,029)			(3,432)
Provision for loan losses	(760)		—		—		—		—		—			(760)
Release of reserve for losses	137		—		—		—		—		—			137
Other non-interest expense	(5,062)		(1,506)		(913)		(2,277)		(3,837)		—			(13,595)
Non-interest expense(4)	(4,925)		(1,506)		(913)		(2,277)		(3,837)		—			(13,458)
Core earnings before income taxes	12,409		3,150		3,954		15,617		(1,290)		(11,378)		(5)	22,462
Income tax (expense)/benefit	(2,606)		(662)		(830)		(3,280)		360		2,389			(4,629)
Core earnings before preferred stock dividends	9,803		2,488		3,124		12,337		(930)		(8,989)		(5)	17,833
Preferred stock dividends	—		—		—		—		(3,427)		—			(3,427)
Segment core earnings/(losses)	$	9,803	$	2,488	$	3,124	$	12,337	$	(4,357)	$	(8,989)	(5)	$	14,406
Total assets at carrying value	$	4,934,887	$	2,238,558	$	1,692,835	$	8,651,264	$	3,797,690	$	—		$	21,315,234
Total on- and off-balance sheet program assets at principal balance	$	7,393,728	$	2,567,763	$	2,232,602	$	8,738,266	$	—	$	—		$	20,932,359

(1)Includes the amortization of premiums and discounts on assets consolidated at fair value, originally included in interest income, to reflect core earnings amounts.

(2)Includes the reclassification of interest income and interest expense from consolidated trusts owned by third parties to guarantee and commitment fees, to reflect management's view that the net interest income Farmer Mac earns is effectively a guarantee fee.

(3)Includes the reclassification of interest expense related to interest rate swaps not designated as hedges, which are included in "(Losses)/gains on financial derivatives" on the consolidated financial statements, to determine the effective funding cost for each operating segment.

(4)Includes directly attributable costs and an allocation of indirectly attributable costs based on employee headcount.

(5)Net adjustments to reconcile to the corresponding income measures: core earnings before income taxes reconciled to income before income taxes; core earnings before preferred stock dividends reconciled to net income; and segment core earnings reconciled to net income attributable to common stockholders.

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Core Earnings by Business Segment
For the Nine Months Ended September 30, 2020
	Farm & Ranch		USDA Guarantees		Rural  Utilities		Institutional Credit		Corporate		Reconciling Adjustments			Consolidated Net Income
	(in thousands)
Net interest income	$	53,768	$	14,691	$	12,778	$	48,059	$	5,025	$	—		$	134,321
Less: reconciling adjustments(1)(2)(3)	(4,072)		488		4,597		7,026		74		(8,113)			—
Net effective spread	49,696		15,179		17,375		55,085		5,099		(8,113)			—
Guarantee and commitment fees(2)	12,822		658		995		23		—		(5,003)			9,495
Other income/(expense)(3)	2,197		864		12		—		(413)		(3,048)			(388)
Non-interest income/(loss)	15,019		1,522		1,007		23		(413)		(8,051)			9,107
(Release of)/provision for losses	412		—		(4,704)		(222)		(28)		—			(4,542)
Provision for reserve for losses	(262)		—		(278)		—		—		—			(540)
Other non-interest expense	(16,632)		(5,045)		(4,428)		(6,606)		(12,171)		—			(44,882)
Non-interest expense(4)	(16,894)		(5,045)		(4,706)		(6,606)		(12,171)		—			(45,422)
Core earnings before income taxes	48,233		11,656		8,972		48,280		(7,513)		(16,164)		(5)	93,464
Income tax (expense)/benefit	(10,129)		(2,448)		(1,884)		(10,139)		1,689		3,395			(19,516)
Core earnings before preferred stock dividends	38,104		9,208		7,088		38,141		(5,824)		(12,769)		(5)	73,948
Preferred stock dividends	—		—		—		—		(12,536)		—			(12,536)
Loss on retirement of preferred stock	—		—		—		—		—		(1,667)			(1,667)
Segment core earnings/(losses)	$	38,104	$	9,208	$	7,088	$	38,141	$	(18,360)	$	(14,436)	(5)	$	59,745
Total assets at carrying value	$	5,961,307	$	2,487,687	$	2,256,011	$	8,716,923	$	4,576,909	$	—		$	23,998,837
Total on- and off-balance sheet program assets at principal balance	$	8,249,349	$	2,735,128	$	2,685,309	$	8,319,502	$	—	$	—		$	21,989,288

(1)Includes the amortization of premiums and discounts on assets consolidated at fair value, originally included in interest income, to reflect core earnings amounts.

(2)Includes the reclassification of interest income and interest expense from consolidated trusts owned by third parties to guarantee and commitment fees, to reflect management's view that the net interest income Farmer Mac earns is effectively a guarantee fee.

(3)Includes the reclassification of interest expense related to interest rate swaps not designated as hedges, which are included in "(Losses)/gains on financial derivatives" on the consolidated financial statements, to determine the effective funding cost for each operating segment.

(4)Includes directly attributable costs and an allocation of indirectly attributable costs based on employee headcount.

(5)Net adjustments to reconcile to the corresponding income measures: core earnings before income taxes reconciled to income before income taxes; core earnings before preferred stock dividends reconciled to net income; and segment core earnings reconciled to net income attributable to common stockholders.

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Core Earnings by Business Segment
For the Nine Months Ended September 30, 2019
	Farm & Ranch		USDA Guarantees		Rural  Utilities		Institutional Credit		Corporate		Reconciling Adjustments			Consolidated Net Income
	(in thousands)
Net interest income	$	46,424	$	13,045	$	6,264	$	49,425	$	8,607	$	—		$	123,765
Less: reconciling adjustments(1)(2)(3)	(7,171)		(670)		5,467		2,126		(900)		1,148			—
Net effective spread	39,253		12,375		11,731		51,551		7,707		1,148			—
Guarantee and commitment fees(2)	13,861		712		1,069		261		—		(5,638)			10,265
Other income/(expense)(3)	1,058		92		31		—		494		1,050			2,725
Non-interest income/(loss)	14,919		804		1,100		261		494		(4,588)			12,990
Provision for loan losses	(1,074)		—		—		—		—		—			(1,074)
Release of reserve for losses	424		—		—		—		—		—			424
Other non-interest expense	(14,448)		(4,279)		(2,595)		(6,470)		(10,903)		—			(38,695)
Non-interest expense(4)	(14,024)		(4,279)		(2,595)		(6,470)		(10,903)		—			(38,271)
Core earnings before income taxes	39,074		8,900		10,236		45,342		(2,702)		(3,440)		(5)	97,410
Income tax (expense)/benefit	(8,206)		(1,870)		(2,149)		(9,522)		663		722			(20,362)
Core earnings before preferred stock dividends	30,868		7,030		8,087		35,820		(2,039)		(2,718)		(5)	77,048
Preferred stock dividends	—		—		—		—		(10,508)		—			(10,508)
Loss on retirement of preferred stock	—		—		—		—		—		(1,956)			(1,956)
Segment core earnings/(losses)	$	30,868	$	7,030	$	8,087	$	35,820	$	(12,547)	$	(4,674)	(5)	$	64,584
Total assets at carrying value	$	4,934,887	$	2,238,558	$	1,692,835	$	8,651,264	$	3,797,690	$	—		$	21,315,234
Total on- and off-balance sheet program assets at principal balance	$	7,393,728	$	2,567,763	$	2,232,602	$	8,738,266	$	—	$	—		$	20,932,359

(1)Includes the amortization of premiums and discounts on assets consolidated at fair value, originally included in interest income, to reflect core earnings amounts.

(2)Includes the reclassification of interest income and interest expense from consolidated trusts owned by third parties to guarantee and commitment fees, to reflect management's view that the net interest income Farmer Mac earns is effectively a guarantee fee.

(3)Includes the reclassification of interest expense related to interest rate swaps not designated as hedges, which are included in "(Losses)/gains on financial derivatives" on the consolidated financial statements, to determine the effective funding cost for each operating segment.

(4)Includes directly attributable costs and an allocation of indirectly attributable costs based on employee headcount.

(5)Net adjustments to reconcile to the corresponding income measures: core earnings before income taxes reconciled to income before income taxes; core earnings before preferred stock dividends reconciled to net income; and segment core earnings reconciled to net income attributable to common stockholders.

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Item 2.Management's Discussion and Analysis of Financial Condition and Results of Operations

Financial information included in this report is consolidated to include the accounts of Farmer Mac and its two subsidiaries – Farmer Mac Mortgage Securities Corporation and Farmer Mac II LLC. This discussion and analysis of financial condition and results of operations should be read together with: (1) the interim unaudited consolidated financial statements and the related notes that appear elsewhere in this report; and (2) Farmer Mac's Annual Report on Form 10-K for the fiscal year ended December 31, 2019, as filed with the SEC on February 25, 2020.

FORWARD-LOOKING STATEMENTS

In this report, the words "Farmer Mac," "we," "our," and "us" refer to the Federal Agricultural Mortgage Corporation unless otherwise stated or unless the context otherwise requires.

Some statements made in this report, such as in the "Management's Discussion and Analysis of Financial Condition and Results of Operations" section, are "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995 about management's current expectations for Farmer Mac's future financial results, business prospects, and business developments.  Forward-looking statements include, without limitation, any statement, including statements about COVID-19 and the impact of the pandemic on Farmer Mac, that may predict, forecast, indicate, or imply future results, performance, or achievements. These statements typically include terms such as "anticipates," "believes," "continues," "estimates," "expects," "forecasts," "intends," "outlook," "plans," "potential," "project," "target" and similar terms, and future or conditional tense verbs like "could," "may," "might," "should," "will," and "would."  This report includes forward-looking statements addressing Farmer Mac's:

•prospects for earnings;

•prospects for growth in business volume;

•assessment of the impact of the COVID-19 pandemic on our business, financial results, financial condition, and business plans and strategies;

•trends in net interest income and net effective spread;

•trends in portfolio credit quality, delinquencies, substandard assets, credit losses, and provisions for losses;

•trends in expenses;

•trends in investment securities;

•prospects for asset impairments and allowance for losses;

•changes in capital position;

•future dividend payments; and

•other business and financial matters.

Management's expectations for Farmer Mac's future necessarily involve assumptions, estimates, and the evaluation of risks and uncertainties.  Various factors or events, both known and unknown, could cause Farmer Mac's actual results to differ materially from the expectations as expressed or implied by the forward-looking statements, including the factors discussed under "Risk Factors" in Part I, Item 1A of Farmer Mac's Annual Report on Form 10-K for the fiscal period ended December 31, 2019 filed with the

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SEC on February 25, 2020, the factors discussed under "Risk Factors" in Part II, Item 1A of this report, and uncertainties about:

•the duration, spread, and severity of the COVID-19 pandemic;

•the actions taken to address the COVID-19 pandemic, including government actions to mitigate the economic impact of the pandemic, how quickly and to what extent normal economic and operating conditions can resume, the possibility of future disruptions to economic recovery caused by additional outbreaks, regulatory measures or voluntary actions that may be put in place to limit the spread of COVID-19, and the duration and efficacy of such restrictions;

•the effects of the COVID-19 pandemic on the business operations of agricultural and rural borrowers, the capital markets, and Farmer Mac's business operations;

•the availability to Farmer Mac of debt and equity financing and, if available, the reasonableness of rates and terms;

•legislative or regulatory developments that could affect Farmer Mac, its sources of business, or the agricultural or rural utilities industries;

•fluctuations in the fair value of assets held by Farmer Mac and its subsidiaries;

•the level of lender interest in Farmer Mac's products and the secondary market provided by Farmer Mac;

•the general rate of growth in agricultural mortgage and rural utilities indebtedness;

•the effect of economic conditions and geopolitics on agricultural mortgage or rural utilities lending, borrower repayment capacity, or collateral values, including fluctuations in interest rates, changes in U.S. trade policies, fluctuations in export demand for U.S. agricultural products, and volatility in commodity prices;

•the degree to which Farmer Mac is exposed to interest rate risk resulting from fluctuations in Farmer Mac's borrowing costs relative to market indexes;

•developments in the financial markets, including possible investor, analyst, and rating agency reactions to events involving government-sponsored enterprises, including Farmer Mac;

•the effect of any changes in Farmer Mac's executive leadership; and

•other factors that could have a negative effect on agricultural mortgage lending or borrower repayment capacity, including the effects of weather and fluctuations in agricultural real estate values.

Considering these potential risks and uncertainties, no undue reliance should be placed on any forward-looking statements expressed in this report.  Farmer Mac undertakes no obligation to release publicly the results of revisions to any forward-looking statements to reflect new information or any future events or circumstances, except as otherwise required by applicable law. The information in this report is not necessarily indicative of future results.

Overview

The discussion below of Farmer Mac's financial information includes "non-GAAP measures," which are measures of financial performance that are not presented in accordance with generally accepted accounting principles in the United States ("GAAP"). For more information about the non-GAAP measures Farmer Mac uses, see "Management's Discussion and Analysis of Financial Condition and Results of Operations—Use of Non-GAAP Measures."

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COVID-19 Update

Farmer Mac continues to closely monitor the effect of the COVID-19 pandemic on our financial condition and operations. We have maintained uninterrupted continuity of our operations while operating entirely remotely and our liquidity levels remain well above regulatory requirements, which has enabled us to execute our mission to support rural America during this pandemic. For example:

•we have maintained uninterrupted access to the debt capital markets;

•we provided a total of $1.3 billion in liquidity and lending capacity to lenders serving rural America during the quarter-ended September 30, 2020;

•we are working with our loan servicers and other partners to respond to and facilitate COVID-19-related payment deferment requests from borrowers, and as of September 30, 2020, we had executed COVID-19 payment deferments for $374.5 million of unpaid principal balance related to Farm & Ranch loans, Farm & Ranch LTSPCs, and USDA Securities to provide relief to borrowers;

•we are maintaining strong liquidity in our investment portfolio, as evidenced by our quarter-end cash position of $0.9 billion; and

•we have built and preserved capital and liquidity by issuing net new preferred stock of $60.0 million in the third quarter, issuing preferred stock of $79.5 million in the second quarter, and indefinitely suspending our common stock repurchase program in the first quarter.

The economic impacts of the COVID-19 pandemic caused our total allowance for credit losses to remain elevated in the third quarter. On January 1, 2020, we adopted Accounting Standards Update 2016-13, Financial Instruments - Credit Loss (Topic 326): Measurement of Credit Losses on Financial Instruments ("CECL"). Under CECL, our allowances and reserve for credit losses reflect our estimate of expected losses over the lives of our financial instruments based on historical information and reasonable and supportable forecasts. Both the adoption of this new accounting standard and the economic effects from the COVID-19 pandemic combined to increase the amount of our total allowance for losses from December 31, 2019 to September 30, 2020. The economic effects from the COVID-19 pandemic that most affected our estimate of expected credit losses were the effects on credit spreads and expectations for continued elevated levels of unemployment. Of the $5.1 million credit loss provision that we recorded in the first nine months of 2020, $1.9 million was attributable to updated economic factors, predominantly related to COVID-19. For more information about the impact of COVID-19 on Farmer Mac's expected credit losses, see "Management's Discussion and Analysis of Financial Condition and Results of Operations—Risk Management—Credit Risk – Loans & Guarantees."

We continue to observe a heightened level of payment deferment requests from our loan servicers on behalf of borrowers in our Farm & Ranch loan portfolio, as well as from our AgVantage counterparties for loans collateralizing their obligations. For more information about Farm & Ranch payment deferments, see "Management's Discussion and Analysis of Financial Condition and Results of Operations—Risk Management—Credit Risk – Loans and Guarantees." For more information about AgVantage loan collateral payment deferments, see "Management's Discussion and Analysis of Financial Condition and Results of Operations—Risk Management—Credit Risk – Institutional."

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Net Income and Core Earnings

The following table shows our net income attributable to common stockholders and core earnings for the periods presented. Core earnings and core earnings per share are non-GAAP measures that principally differ from net income attributable to common stockholders and earnings per common share, respectively, by excluding the effects of fair value fluctuations as well as the effects of specified infrequent or unusual transactions.

Table 1

	For the Three Months Ended
	September 30, 2020		June 30, 2020		September 30, 2019
	(in thousands)
Net income attributable to common stockholders	$	18,659	$	31,687	$	14,406
Core earnings	27,691		26,347		23,395

The $13.0 million sequential decrease in net income attributable to common stockholders was primarily due to a $5.6 million after-tax decrease in the fair value of financial derivatives not designated as hedging instruments in hedge accounting relationships (undesignated financial derivatives) due to fluctuations in long-term interest rates, a $2.9 million after-tax decrease in net interest income, the recognition of $1.7 million in deferred issuance costs related to the redemption of the Series A Preferred Stock, a $1.2 million increase in preferred stock dividends, and a $0.9 million after-tax increase in the total provision for credit losses.

The $4.3 million year-over-year increase in net income attributable to common stockholders was primarily due to a $5.4 million after-tax increase in the fair value of undesignated financial derivatives due to fluctuations in long-term interest rates and a $3.6 million after-tax increase in net interest income. These increases were partially offset by a $1.7 million increase in preferred stock dividends, the recognition of $1.7 million in deferred issuance costs related to the redemption of the Series A Preferred Stock, and a $0.7 million after-tax increase in operating expenses.

The $1.3 million sequential increase in core earnings was primarily due to a $4.2 million after-tax increase in net effective spread, partially offset by a $0.9 million after-tax increase in the total provision for credit losses, a $1.2 million increase in preferred stock dividends, a $0.4 million after-tax increase in operating expenses, and a $0.5 million after-tax decrease in other income.

The $4.3 million year-over-year increase in core earnings was primarily due to a $7.4 million after-tax increase in net effective spread. This increase was partially offset by a $1.7 million increase in preferred stock dividends, a $0.8 million after-tax increase in operating expenses, and a $0.5 million after-tax increase in the total provision for credit losses.

For more information about net income attributable to common stockholders, the composition of core earnings, and a reconciliation of net income attributable to common stockholders to core earnings, see "Management's Discussion and Analysis of Financial Condition and Results of Operations—Results of Operations." For more information about the non-GAAP measures Farmer Mac uses, see "Management's Discussion and Analysis of Financial Condition and Results of Operations—Use of Non-GAAP Measures."

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Net Interest Income and Net Effective Spread

The following table shows our net interest income and net effective spread in both dollars and percentage yield or spread for the periods presented. Farmer Mac uses net effective spread, a non-GAAP measure, as an alternative to net interest income because management believes it is a useful metric that reflects the economics of the net spread between all the assets owned by Farmer Mac and all related funding, including any associated derivatives, some of which may not be included in net interest income.

Table 2

	For the Three Months Ended
	September 30, 2020			June 30, 2020			September 30, 2019
	(in thousands)
Net interest income	$	44,661		$	48,348		$	40,112
Net interest yield %	0.78		%	0.87		%	0.78		%
Net effective spread	51,802			46,469			42,461
Net effective spread %	0.96		%	0.89		%	0.90		%

The $3.7 million sequential decrease in net interest income was primarily due to a $2.7 million decrease in net fair value losses from derivatives designated in fair value hedge accounting relationships (designated financial derivatives) and a $3.0 million increase in funding and liquidity costs. This was partially offset by a $2.3 million increase related to new business volume. In percentage terms, the decrease of 0.09% was primarily attributable to a decrease of 0.05% in net fair value changes from designated financial derivatives, an increase of 0.06% in funding and liquidity costs, and an increase of 0.01% related to new business volume.

The $4.5 million year-over-year increase in net interest income was primarily due to net growth across most lines of business, which contributed to a $6.5 million increase in net interest income. This increase was partially offset by a $1.8 million increase in funding and liquidity costs. In percentage terms, net interest income remained at 0.78% in both third quarter 2020 and third quarter 2019.

The $5.3 million sequential increase in net effective spread was primarily due to a $2.3 million increase related to new business volume and a $3.1 million decrease in non-GAAP funding costs. In percentage terms, the increase of 0.07% was primarily attributable to the decrease in non-GAAP funding costs of 0.05% and an increase of 0.01% related to new business volume.

The $9.3 million year-over-year increase in net effective spread was primarily due to net growth in outstanding business volume, which increased net effective spread by approximately $6.5 million and a $2.2 million decrease in non-GAAP funding costs. In percentage terms, the increase of 0.06% was primarily attributable to an increase of 0.03% related to net volume growth, and a decrease in non-GAAP funding costs of 0.03%.

For more information about Farmer Mac's use of net effective spread as a financial measure, see "Management's Discussion and Analysis of Financial Condition and Results of Operations—Use of Non-GAAP Measures." For a reconciliation of net interest income to net effective spread, see Table 11 in "Management's Discussion and Analysis of Financial Condition and Results of Operations—Results of Operations—Net Interest Income."

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Business Volume

Our outstanding business volume was $22.0 billion as of September 30, 2020, a net decrease of $52.8 million from June 30, 2020, after taking into account all new business, maturities, and paydowns on existing assets. This net decrease was primarily attributable to net decreases of $335.3 million in the Institutional Credit line of business and $6.3 million in Rural Utilities, which was partially offset by net increases of $231.5 million in Farm & Ranch and $57.3 million in USDA Guarantees.

Farmer Mac's net business volume decrease of $52.8 million in third quarter 2020 was primarily attributable to maturities of $547.2 million in our Institutional Credit line of business due to reduced financing demand from those counterparties and tightening spreads in the institutional market.

The $231.5 million net increase in our Farm & Ranch line of business was comprised of a $399.5 million net increase in outstanding loan purchase volume, partially offset by net decreases of $159.7 million in loans held in consolidated trusts and $8.3 million in loans underlying LTSPCs and off-balance sheet Farmer Mac Guaranteed Securities. During third quarter 2020, Farmer Mac syndicated a $15.0 million position of a newly purchased $59.2 million agricultural loan. The transaction represents new activity for Farmer Mac to broaden its relationships across the agricultural lending spectrum.

The $6.3 million net decrease in our Rural Utilities line of business was comprised of a $14.1 million net decrease in loans under LTSPCs, partially offset by $7.8 million net increase in outstanding loan purchase volume. During the third quarter, as part of our renewable energy project finance strategic initiative, Farmer Mac purchased a $10.0 million loan in connection with a wind project financing.

For more information about Farmer Mac's business volume, see "Management's Discussion and Analysis of Financial Condition and Results of Operations—Results of Operations—Business Volume."

Capital

Table 3

	As of
	September 30, 2020		December 31, 2019
	(in thousands)
Core capital	$	984,182	$	815,437
Capital in excess of minimum capital level required	314,235		196,669

The increase in capital in excess of the minimum capital level required was primarily due to the Board-authorized issuance of the Series E Preferred Stock and Series F Preferred Stock and the increase in retained earnings, partially offset by growth in our outstanding business volume and the Board-authorized redemption of the Series A Preferred Stock.

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Current Expected Credit Loss

As noted above, Farmer Mac adopted CECL on January 1, 2020. Under CECL, we estimate and recognize expected credit losses over the lives of our financial assets. We base our estimate of expected losses on historical loss information and reasonable and supportable forecasts. In third quarter 2020, our reasonable and supportable forecasts included the impact of the COVID-19 pandemic on economic factors such as credit spreads and unemployment. Thus, our total provision for credit losses during the three months ended September 30, 2020 was affected by the ongoing economic effects of the COVID-19 pandemic.

As of September 30, 2020, Farmer Mac's allowance for losses on its on-balance sheet loan portfolio was $15.8 million (0.19% of all loans), compared to $10.5 million (0.15% of all loans) as of December 31, 2019. As of January 1, 2020, Farmer Mac recorded a cumulative transition adjustment of $1.5 million. For the three and nine months ended September 30, 2020, Farmer Mac recorded a provision to its allowance for loan losses of $0.9 million and $4.3 million, respectively.

As of September 30, 2020, Farmer Mac's reserve for losses on its off-balance sheet LTSPCs and Guaranteed Securities was $3.6 million (0.11% of all off-balance sheet LTSPCs and Guaranteed Securities), compared to $2.2 million (0.06% of all off-balance sheet LTSPCs and Guaranteed Securities) on December 31, 2019. As of January 1, 2020, Farmer Mac recorded a cumulative transition adjustment of $0.9 million. For both the three and nine months ended September 30, 2020, Farmer Mac recorded a provision to its reserve for its off-balance sheet portfolio of $0.5 million.

Credit Quality

The following table presents Farm & Ranch substandard assets, in dollars and as a percentage of the Farm & Ranch portfolio, for both on- and off-balance sheet assets as of September 30, 2020, June 30, 2020, and December 31, 2019:

Table 4

	Farm & Ranch Line of Business
	On-Balance Sheet				Off-Balance Sheet
	Substandard Assets		% of Portfolio		Substandard Assets		% of Portfolio
	(dollars in thousands)
September 30, 2020	$	195,455	3.3	%	$	125,729	5.3	%
June 30, 2020	209,690		3.7	%	95,174		4.0	%
December 31, 2019	207,078		3.9	%	102,877		4.1	%
Increase/(decrease) from prior quarter-ending	$	(14,235)	(0.4)	%	$	30,555	1.3	%
Increase/(decrease) from prior year-ending	$	(11,623)	(0.6)	%	$	22,852	1.2	%

The decrease of $14.2 million in on-balance sheet substandard assets during third quarter 2020 was primarily driven by credit upgrades during the quarter. The overall Farm & Ranch portfolio grew by $239.8 million, which caused substandard assets as a percentage of the total on-balance sheet Farm & Ranch portfolio to decrease. The $30.6 million increase in substandard assets in our off-balance sheet Farm & Ranch portfolio during third quarter 2020 was primarily due to credit downgrades during the quarter. For an analysis of current loan-to-value ratios across substandard and other internally assigned risk ratings, see Table 27 in "Management's Discussion and Analysis of Financial Condition and Results of Operations—Risk Management—Credit Risk – Loans and Guarantees."

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The following table presents Farm & Ranch 90-day delinquencies, in dollars and as a percentage of the Farm & Ranch portfolio, for both on- and off-balance sheet assets as of September 30, 2020, June 30, 2020, and December 31, 2019:

Table 5

	Farm & Ranch Line of Business
	On-Balance Sheet				Off-Balance Sheet
	90-Day Delinquencies		% of Portfolio		90-Day Delinquencies		% of Portfolio
	(dollars in thousands)
September 30, 2020	$	74,040	1.26	%	$	14,001	0.59	%
June 30, 2020	65,866		1.17	%	2,816		0.12	%
December 31, 2019	57,719		1.09	%	3,235		0.13	%
Increase/(decrease) from prior quarter-ending	$	8,174	0.09	%	$	11,185	0.47	%
Increase/(decrease) from prior year-ending	$	16,321	0.17	%	$	10,766	0.46	%

The sequential increase in 90-day delinquencies is primarily due to the seasonal payment pattern associated with loans that have annual (January 1st) and semi-annual (January 1st and July 1st) payment terms, which account for most of the loans in the Farm & Ranch portfolio. The sequential increase was primarily driven by two commodity groups – crops and livestock. Other commodity groups experienced small decreases in 90-day delinquencies or remained stable. The top ten borrower exposures over 90 days delinquent represented over half of the 90-day delinquencies as of September 30, 2020.

In the Rural Utilities portfolio, one $4.5 million loan was downgraded to substandard in the previous quarter and remained substandard in third quarter 2020. There were no delinquencies in the Rural Utilities portfolio as of September 30, 2020.

For more information about Farmer Mac's credit metrics, including 90-day delinquencies, the total allowance for losses, and substandard assets, as well as the effects of the COVID-19 pandemic on loan payment deferments, see "Management's Discussion and Analysis of Financial Condition and Results of Operations—Risk Management—Credit Risk – Loans and Guarantees."

Use of Non-GAAP Measures

In the accompanying analysis of its financial information, Farmer Mac uses "non-GAAP measures," which are measures of financial performance that are not presented in accordance with GAAP. Specifically, Farmer Mac uses the following non-GAAP measures: "core earnings," "core earnings per share," and "net effective spread." Farmer Mac uses these non-GAAP measures to measure corporate economic performance and develop financial plans because, in management's view, they are useful alternative measures in understanding Farmer Mac's economic performance, transaction economics, and business trends.

The non-GAAP financial measures that Farmer Mac uses may not be comparable to similarly labeled non-GAAP financial measures disclosed by other companies. Farmer Mac's disclosure of these non-GAAP measures is intended to be supplemental in nature and is not meant to be considered in isolation from, as a substitute for, or as more important than, the related financial information prepared in accordance with GAAP.

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Core Earnings and Core Earnings Per Share

Core earnings and core earnings per share principally differ from net income attributable to common stockholders and earnings per common share, respectively, by excluding the effects of fair value fluctuations. These fluctuations are not expected to have a cumulative net impact on Farmer Mac's financial condition or results of operations reported in accordance with GAAP if the related financial instruments are held to maturity, as is expected.

Core earnings and core earnings per share also differ from net income attributable to common stockholders and earnings per common share, respectively, by excluding specified infrequent or unusual transactions that we believe are not indicative of future operating results and that may not reflect the trends and economic financial performance of Farmer Mac's core business. For example, we have excluded from core earnings losses on retirement of preferred stock and, in prior periods, the re-measurement of the deferred tax asset. For a reconciliation of Farmer Mac's net income attributable to common stockholders to core earnings and of earnings per common share to core earnings per share, see "Management's Discussion and Analysis of Financial Condition and Results of Operations—Results of Operations."

Net Effective Spread

Farmer Mac uses net effective spread to measure the net spread Farmer Mac earns between its interest-earning assets and the related net funding costs of these assets. Net effective spread differs from net interest income and net interest yield because it excludes: (1) the amortization of premiums and discounts on assets consolidated at fair value that are amortized as adjustments to yield in interest income over the contractual or estimated remaining lives of the underlying assets; (2) interest income and interest expense related to consolidated trusts with beneficial interests owned by third parties, which are presented on Farmer Mac's consolidated balance sheets as "Loans held for investment in consolidated trusts, at amortized cost"; and (3) the fair value changes of financial derivatives and the corresponding assets or liabilities designated in a fair value hedge accounting relationship.

Farmer Mac excludes from net effective spread the premiums and discounts on assets consolidated at fair value because they either do not reflect actual cash premiums paid for the assets at acquisition or are not expected to have an economic effect on Farmer Mac's financial performance if the assets are held to maturity, as is expected. Farmer Mac also excludes from net effective spread the interest income and interest expense associated with the consolidated trusts and the average balance of the loans underlying these trusts to reflect management's view that the net interest income Farmer Mac earns on the related Farmer Mac Guaranteed Securities owned by third parties is effectively a guarantee fee. Accordingly, the excluded interest income and interest expense associated with consolidated trusts is reclassified to guarantee and commitment fees in determining Farmer Mac's core earnings. Farmer Mac also excludes from net effective spread the fair value changes of financial derivatives and the corresponding assets or liabilities designated in fair value hedge relationships because they are not expected to have an economic effect on Farmer Mac's financial performance, as we expect to hold the financial derivatives and corresponding hedged items to maturity.

Net effective spread also principally differs from net interest income and net interest yield because it includes the accrual of income and expense related to the contractual amounts due on financial derivatives that are not designated in hedge accounting relationships ("undesignated financial derivatives"). Farmer Mac uses interest rate swaps to manage its interest rate risk exposure by synthetically modifying the

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interest rate reset or maturity characteristics of certain assets and liabilities. The accrual of the contractual amounts due on interest rate swaps designated in hedge accounting relationships is included as an adjustment to the yield or cost of the hedged item and is included in net interest income. For undesignated financial derivatives, Farmer Mac records the income or expense related to the accrual of the contractual amounts due in "(Losses)/gains on financial derivatives" on the consolidated statements of operations. However, the accrual of the contractual amounts due for undesignated financial derivatives are included in Farmer Mac's calculation of net effective spread.

Net effective spread also differs from net interest income and net interest yield because it includes the net effects of terminations or net settlements on financial derivatives, which consist of: (1) the net effects of cash settlements on agency forward contracts on the debt of other GSEs and U.S. Treasury security futures that we use as short-term economic hedges on the issuance of debt; and (2) the net effects of initial cash payments that Farmer Mac receives upon the inception of certain swaps. The inclusion of these items in net effective spread is intended to reflect our view of the complete net spread between an asset and all of its related funding, including any associated derivatives, whether or not they are designated in a hedge accounting relationship.

For a reconciliation of net interest income and net interest yield to net effective spread, see Table 11 in "Management's Discussion and Analysis of Financial Condition and Results of Operations—Results of Operations—Net Interest Income."

Results of Operations

Reconciliations of Farmer Mac's net income attributable to common stockholders to core earnings and core earnings per share are presented in the following tables along with information about the composition of core earnings:

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Table 6

Reconciliation of Net Income Attributable to Common Stockholders to Core Earnings
	For the Three Months Ended
	September 30, 2020		September 30, 2019
	(in thousands, except per share amounts)
Net income attributable to common stockholders	$	18,659	$	14,406
Less reconciling items:
Losses on undesignated financial derivatives due to fair value changes (see Table 14)	(4,149)		(7,117)
Losses on hedging activities due to fair value changes	(5,245)		(4,535)
Unrealized (losses)/gains on trading securities	(258)		49
Amortization of premiums/discounts and deferred gains on assets consolidated at fair value	97		(7)
Net effects of terminations or net settlements on financial derivatives	233		232
Issuance costs on the retirement of preferred stock	(1,667)		—
Income tax effect related to reconciling items	1,957		2,389
Sub-total	(9,032)		(8,989)
Core earnings	$	27,691	$	23,395
Composition of Core Earnings:
Revenues:
Net effective spread(1)	$	51,802	$	42,461
Guarantee and commitment fees(2)	4,659		5,208
Other(3)	453		389
Total revenues	56,914		48,058
Credit related expense (GAAP):
Provision for losses	1,200		623
Total credit related expense	1,200		623
Operating expenses (GAAP):
Compensation and employee benefits	8,791		7,654
General and administrative	5,044		5,253
Regulatory fees	725		688
Total operating expenses	14,560		13,595
Net earnings	41,154		33,840
Income tax expense(4)	8,297		7,018
Preferred stock dividends (GAAP)	5,166		3,427
Core earnings	$	27,691	$	23,395
Core earnings per share:
Basic	$	2.58	$	2.19
Diluted	2.57		2.17
Weighted-average shares:
Basic	10,734		10,706
Diluted	10,785		10,776

(1)Net effective spread is a non-GAAP measure. See "Management's Discussion and Analysis of Financial Condition and Results of Operations—Use of Non-GAAP Measures—Net Effective Spread" for an explanation of net effective spread. See Table 11 for a reconciliation of net interest income to net effective spread.

(2)Includes interest income and interest expense related to consolidated trusts owned by third parties reclassified from net interest income to guarantee and commitment fees to reflect management's view that the net interest income Farmer Mac earns is effectively a guarantee fee on the consolidated Farmer Mac Guaranteed Securities.

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(3)Reflects reconciling adjustments for the reclassification to exclude expenses related to interest rate swaps not designated as hedges and terminations or net settlements on financial derivatives, and reconciling adjustments to exclude fair value adjustments on financial derivatives and trading assets and the recognition of deferred gains over the estimated lives of certain Farmer Mac Guaranteed Securities and USDA Securities.

(4)Includes the tax impact of non-GAAP reconciling items between net income attributable to common stockholders and core earnings.

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Reconciliation of Net Income Attributable to Common Stockholders to Core Earnings
	For the Nine Months Ended
	September 30, 2020		September 30, 2019
	(in thousands, except per share amounts)
Net income attributable to common stockholders	$	59,745	$	64,584
Less reconciling items:
(Losses)/gains on undesignated financial derivatives due to fair value changes (see Table 14)	(1,933)		5,608
Losses on hedging activities due to fair value changes	(13,846)		(8,790)
Unrealized (losses)/gains on trading securities	(173)		154
Amortization of premiums/discounts and deferred gains on assets consolidated at fair value	135		(162)
Net effects of terminations or net settlements on financial derivatives	(346)		(250)
Issuance costs on the retirement of preferred stock	(1,667)		(1,956)
Income tax effect related to reconciling items	3,394		722
Sub-total	(14,436)		(4,674)
Core earnings	$	74,181	$	69,258
Composition of Core Earnings:
Revenues:
Net effective spread(1)	$	142,434	$	122,617
Guarantee and commitment fees(2)	14,498		15,903
Other(3)	2,175		1,675
Total revenues	159,107		140,195
Credit related expense (GAAP):
Provision for losses	5,082		650
REO operating expenses	—		64
Gains on sale of REO	(485)		—
Total credit related expense	4,597		714
Operating expenses (GAAP):
Compensation and employee benefits	27,005		22,030
General and administrative	15,702		14,538
Regulatory fees	2,175		2,063
Total operating expenses	44,882		38,631
Net earnings	109,628		100,850
Income tax expense(4)	22,911		21,084
Preferred stock dividends (GAAP)	12,536		10,508
Core earnings	$	74,181	$	69,258
Core earnings per share:
Basic	$	6.92	$	6.48
Diluted	6.88		6.43
Weighted-average shares:
Basic	10,725		10,691
Diluted	10,781		10,774

(1)Net effective spread is a non-GAAP measure. See "Management's Discussion and Analysis of Financial Condition and Results of Operations—Use of Non-GAAP Measures—Net Effective Spread" for an explanation of net effective spread. See Table 11 for a reconciliation of net interest income to net effective spread.

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(2)Includes interest income and interest expense related to consolidated trusts owned by third parties reclassified from net interest income to guarantee and commitment fees to reflect management's view that the net interest income Farmer Mac earns is effectively a guarantee fee on the consolidated Farmer Mac Guaranteed Securities.

(3)Reflects reconciling adjustments for the reclassification to exclude expenses related to interest rate swaps not designated as hedges and terminations or net settlements on financial derivatives, and reconciling adjustments to exclude fair value adjustments on financial derivatives and trading assets and the recognition of deferred gains over the estimated lives of certain Farmer Mac Guaranteed Securities and USDA Securities.

(4)Includes the tax impact of non-GAAP reconciling items between net income attributable to common stockholders and core earnings.

Table 7

Reconciliation of GAAP Basic Earnings Per Share to Core Earnings - Basic Earnings Per Share
	For the Three Months Ended				For the Nine Months Ended
	September 30, 2020		September 30, 2019		September 30, 2020		September 30, 2019
	(in thousands, except per share amounts)
GAAP - Basic EPS	$	1.74	$	1.34	$	5.57	$	6.04
Less reconciling items:
(Losses)/gains on undesignated financial derivatives due to fair value changes (see Table 14)	(0.39)		(0.66)		(0.18)		0.52
Losses on hedging activities due to fair value changes	(0.49)		(0.42)		(1.29)		(0.82)
Unrealized (losses)/gains on trading securities	(0.02)		—		(0.02)		0.01
Amortization of premiums/discounts and deferred gains on assets consolidated at fair value	0.01		—		0.01		(0.02)
Net effects of terminations or net settlements on financial derivatives	0.02		0.02		(0.03)		(0.02)
Issuance costs on the retirement of preferred stock	(0.15)		—		(0.16)		(0.18)
Income tax effect related to reconciling items	0.18		0.21		0.32		0.07
Sub-total	(0.84)		(0.85)		(1.35)		(0.44)
Core Earnings - Basic EPS	$	2.58	$	2.19	$	6.92	$	6.48
Shares used in per share calculation (GAAP and Core Earnings)	10,734		10,706		10,725		10,691

Reconciliation of GAAP Diluted Earnings Per Share to Core Earnings - Diluted Earnings Per Share
	For the Three Months Ended				For the Nine Months Ended
	September 30, 2020		September 30, 2019		September 30, 2020		September 30, 2019
	(in thousands, except per share amounts)
GAAP - Diluted EPS	$	1.73	$	1.33	$	5.54	$	5.99
Less reconciling items:
(Losses)/gains on undesignated financial derivatives due to fair value changes (see Table 14)	(0.39)		(0.66)		(0.18)		0.52
Losses on hedging activities due to fair value changes	(0.49)		(0.42)		(1.28)		(0.82)
Unrealized (losses)/gains on trading securities	(0.02)		—		(0.02)		0.01
Amortization of premiums/discounts and deferred gains on assets consolidated at fair value	0.01		—		0.01		(0.02)
Net effects of terminations or net settlements on financial derivatives	0.02		0.02		(0.03)		(0.02)
Issuance costs on the retirement of preferred stock	(0.15)		—		(0.15)		(0.18)
Income tax effect related to reconciling items	0.18		0.22		0.31		0.07
Sub-total	(0.84)		(0.84)		(1.34)		(0.44)
Core Earnings - Diluted EPS	$	2.57	$	2.17	$	6.88	$	6.43
Shares used in per share calculation (GAAP and Core Earnings)	10,785		10,776		10,781		10,774

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The non-GAAP reconciling items between net income attributable to common stockholders and core earnings are:

1. Losses on financial derivatives due to fair value changes are presented by two reconciling items in Table 6 above: (a) (Losses)/gains on undesignated financial derivatives due to fair value changes; and (b) Losses on hedging activities due to fair value changes. The table below calculates the non-GAAP reconciling item for losses on hedging activities due to fair value changes:

Table 8

Non-GAAP Reconciling Items for (Losses)/Gains on Hedging Activities due to Fair Value Changes
	For the Three Months Ended				For the Nine Months Ended
	September 30, 2020		September 30, 2019		September 30, 2020		September 30, 2019
	(in thousands)
Losses due to fair value changes (see Table 4.2)	$	(5,047)	$	(4,490)	$	(13,109)	$	(8,617)
Initial cash payment (received) at inception of swap	(198)		(45)		(737)		(173)
Losses on hedging activities due to fair value changes	$	(5,245)	$	(4,535)	$	(13,846)	$	(8,790)

2. Unrealized gains/(losses) on trading securities. The unrealized gains/(losses) on trading securities are reported on Farmer Mac's consolidated statements of operations, which represent changes during the period in fair values for trading assets remaining on Farmer Mac's balance sheet as of the end of the reporting period.

3. Amortization of premiums/discounts and deferred gains on assets consolidated at fair value. The amount of this non-GAAP reconciling item is the recorded amount of premium, discount, or deferred gain amortization during the reporting period on those assets for which the premium, discount, or deferred gain was based on the application of an accounting principle (e.g., consolidation of variable interest entities) rather than on a cash transaction (e.g., a purchase price premium or discount).

4. The net effects of terminations or net settlements on financial derivatives. These terminations or net settlements relate to:

•Forward contracts on the debt of other GSEs and futures contracts on U.S. Treasury securities. These contracts are used as a short-term economic hedge of the issuance of debt. For GAAP purposes, realized gains or losses on settlements of these contracts are reported in the consolidated statements of operations in the period in which they occur. For core earnings purposes, these realized gains or losses are deferred and amortized as net yield adjustments over the term of the related debt, which generally ranges from 3 to 15 years.

•Initial cash payments received by Farmer Mac upon the inception of certain swaps. When there is no direct payment arrangement between a swap dealer counterparty and a debt dealer issuing Farmer Mac's medium-term notes for a particular transaction, Farmer Mac may receive an initial cash payment from the swap dealer at the inception of the swap to offset dollar-for-dollar the amount of the discount on the associated hedged debt. For GAAP purposes, changes in fair value of the swaps are recognized in "Gains on financial derivatives," while the economically offsetting discount on the associated hedged debt is amortized over the term of the debt as an adjustment to its yield. For purposes of core earnings, these initial cash payments are deferred and amortized as net yield adjustments over the term of the related debt, which generally ranges from 3 to 15 years.

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5. The recognition of deferred issuance costs on the retirements of the Series A Preferred Stock and Series B Preferred Stock in third quarter 2020 and second quarter 2019, respectively, has been excluded from core earnings because they are not frequently occurring transactions, nor are they indicative of future operating results. This is consistent with Farmer Mac's previous treatment of deferred issuance costs associated with the retirement of preferred stock.

The following sections provide more detail about specific components of Farmer Mac's results of operations.

Net Interest Income.  The following table provides information about interest-earning assets and funding for the nine months ended September 30, 2020 and 2019. The average balance of non-accruing loans is included in the average balance of loans, Farmer Mac Guaranteed Securities, and USDA Securities presented, though the related income is accounted for on a cash basis.  Therefore, as the average balance of non-accruing loans and the income received increases or decreases, the net interest income and yield will fluctuate accordingly.  The average balance of loans in consolidated trusts with beneficial interests owned by third parties is disclosed in the net effect of consolidated trusts and is not included in the average balances of interest-earning assets and interest-bearing liabilities.  The interest income and expense associated with these trusts are shown in the net effect of consolidated trusts. 

Table 9

	For the Nine Months Ended
	September 30, 2020						September 30, 2019
	Average Balance		Income/ Expense		Average Rate		Average Balance		Income/ Expense		Average Rate
	(dollars in thousands)
Interest-earning assets:
Cash and investments	$	3,965,371	$	35,236	1.18	%	$	3,118,378	$	61,718	2.64	%
Loans, Farmer Mac Guaranteed Securities and USDA Securities(1)	16,780,558		309,051		2.46	%	15,019,083		374,767		3.33	%
Total interest-earning assets	20,745,929		344,287		2.21	%	18,137,461		436,485		3.21	%
Funding:
Notes payable due within one year	3,626,550		21,654		0.80	%	3,785,429		67,930		2.39	%
Notes payable due after one year(2)	16,828,032		193,315		1.53	%	13,760,960		250,428		2.43	%
Total interest-bearing liabilities(3)	20,454,582		214,969		1.40	%	17,546,389		318,358		2.42	%
Net non-interest-bearing funding	291,347		—				591,072		—
Total funding	20,745,929		214,969		1.38	%	18,137,461		318,358		2.34	%
Net interest income/yield prior to consolidation of certain trusts	20,745,929		129,318		0.83	%	18,137,461		118,127		0.87	%
Net effect of consolidated trusts(4)	1,436,353		5,003		0.46	%	1,546,443		5,638		0.49	%
Net interest income/yield	$	22,182,282	$	134,321	0.81	%	$	19,683,904	$	123,765	0.84	%

(1)Excludes interest income of $41.8 million and $45.7 million, in the first nine months of 2020 and 2019, respectively, related to consolidated trusts with beneficial interests owned by third parties.

(2)Includes current portion of long-term notes.

(3)Excludes interest expense of $36.8 million and $40.0 million in the first nine months of 2020 and 2019, respectively, related to consolidated trusts with beneficial interests owned by third parties.

(4)Includes the effect of consolidated trusts with beneficial interests owned by third parties.

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The $10.6 million year-over-year increase in net interest income was primarily due to net growth across most lines of business, which contributed $16.6 million towards the increase in net interest income. This increase was partially offset by the decrease of $4.5 million in net fair value changes from fair value hedge accounting relationships as a result of material changes in market interest rates and a $1.8 million increase in funding and liquidity costs. In percentage terms, the decrease of 0.03% was primarily attributable to an increase of 0.04% in funding and liquidity costs and a decrease of 0.03% in net fair value changes from fair value hedge accounting relationships. These decreases were partially offset by an increase of 0.03% related to net volume growth.

The following table sets forth information about changes in the components of Farmer Mac's net interest income prior to consolidation of certain trusts for the periods indicated.  For each category, information is provided on changes attributable to changes in volume (change in volume multiplied by old rate) and changes in rate (change in rate multiplied by old volume).  Combined rate/volume variances, the third element of the calculation, are allocated based on their relative size.  

Table 10

	For the Nine Months Ended September 30, 2020 Compared to Same Period in 2019
	Increase/(Decrease) Due to
	Rate		Volume		Total
	(in thousands)
Income from interest-earning assets:
Cash and investments	$	(40,196)	$	13,714	$	(26,482)
Loans, Farmer Mac Guaranteed Securities and USDA Securities	(106,109)		40,393		(65,716)
Total	(146,305)		54,107		(92,198)
Expense from other interest-bearing liabilities	(149,880)		46,491		(103,389)
Change in net interest income prior to consolidation of certain trusts(1)	$	3,575	$	7,616	$	11,191

(1)Excludes the effect of debt in consolidated trusts with beneficial interests owned by third parties.

The following table presents a reconciliation of net interest income and net interest yield to net effective spread.  Net effective spread is measured by: including (1) expenses related to undesignated financial derivatives, which consists of income or expense related to contractual amounts due on financial derivatives not designated in hedge relationships (the income or expense related to financial derivatives designated in hedge accounting relationships is already included in net interest income), and (2) the amortization of losses due to terminations or net settlements of financial derivatives; and excluding (3) the amortization of premiums and discounts on assets consolidated at fair value, (4) the net effects of consolidated trusts with beneficial interests owned by third parties, and (5) the fair value changes of financial derivatives and corresponding financial assets or liabilities in fair value hedge relationships. See "Management's Discussion and Analysis of Financial Condition and Results of Operations—Use of Non-GAAP Measures—Net Effective Spread" for more information about net effective spread.

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Table 11

	For the Three Months Ended								For the Nine Months Ended
	September 30, 2020				September 30, 2019				September 30, 2020				September 30, 2019
	Dollars		Yield		Dollars		Yield		Dollars		Yield		Dollars		Yield
	(dollars in thousands)
Net interest income/yield	$	44,661	0.78	%	$	40,112	0.78	%	$	134,321	0.80	%	$	123,765	0.84	%
Net effects of consolidated trusts	(1,500)		0.02	%	(1,859)		0.02	%	(5,003)		0.03	%	(5,638)		0.03	%
Expense related to undesignated financial derivatives	3,613		0.07	%	(268)		—	%	9		—	%	(4,370)		(0.03)	%
Amortization of premiums/discounts on assets consolidated at fair value	(81)		—	%	28		—	%	(92)		—	%	341		—	%
Amortization of losses due to terminations or net settlements on financial derivatives	62		—	%	(42)		—	%	90		—	%	(98)		—	%
Fair value changes on fair value hedge relationships	5,047		0.09	%	4,490		0.10	%	13,109		0.09	%	8,617		0.06	%
Net effective spread	$	51,802	0.96	%	$	42,461	0.90	%	$	142,434	0.92	%	$	122,617	0.90	%

For the three months ended September 30, 2020 compared to the same period in 2019, the $9.3 million increase in net effective spread in dollars was primarily due to net growth in outstanding business volume, which increased net effective spread by approximately $6.5 million, and a $2.2 million decrease in non-GAAP funding costs.

For the first nine months of 2020 compared to the same period in 2019, the $19.8 million increase in net effective spread in dollars was primarily due to net growth in outstanding business volume, which increased net effective spread by approximately $16.6 million, and a $2.8 million decrease in non-GAAP funding costs.

See Note 10 to the consolidated financial statements for more information about net interest income and net effective spread from Farmer Mac's individual business segments. See "Management's Discussion and Analysis of Financial Condition and Results of Operations—Supplemental Information" for quarterly net effective spread by line of business.

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Provision for and Release of Allowance for Losses and Reserve for Losses. The following table summarizes the components of Farmer Mac's total allowance for losses for the three and nine months ended September 30, 2020 and 2019:

Table 12

	As of September 30, 2020						As of September 30, 2019
	Allowance for Losses		Reserve for Losses		Total Allowance for Losses		Allowance for Losses		Reserve for Losses		Total Allowance for Losses
	(in thousands)
For the Three Months Ended:
Beginning balance	$	15,758	$	3,020	$	18,778	$	7,264	$	1,880	$	9,144
Provision for/(release of) losses	646		548		1,194		760		(137)		623
Ending Balance	$	16,404	$	3,568	$	19,972	$	8,024	$	1,743	$	9,767
For the Nine Months Ended:
Beginning balance	$	10,454	$	2,164	$	12,618	$	7,017	$	2,167	$	9,184
Cumulative effect adjustment from adoption of current expected credit loss standard	1,793		863		2,656		—		—		—
Adjusted beginning balance	12,247		3,027		15,274		7,017		2,167		9,184
Provision for/(release of) losses	4,551		541		5,092		1,074		(424)		650
Charge-offs	(394)		—		(394)		(67)		—		(67)
Ending balance	$	16,404	$	3,568	$	19,972	$	8,024	$	1,743	$	9,767

The cumulative effect adjustment from the adoption of CECL on January 1, 2020 was $2.7 million and was recorded directly to retained earnings, net of tax. The transition adjustment was the difference between (1) the total allowance for losses on December 31, 2019 that reflected probable incurred losses and (2) the total allowance for losses on January 1, 2020 that reflected expected losses.

The cumulative effect adjustment for credit losses on on-balance sheet assets was $1.8 million and was comprised of an increase of $5.4 million to the allowance for losses on Rural Utilities loans and Farmer Mac Guaranteed Securities and a $3.6 million decrease in the allowance for losses on Farm & Ranch loans and Farmer Mac Guaranteed Securities. Although Farmer Mac has never experienced any credit losses in its portfolio of Rural Utilities loans and Farmer Mac Guaranteed Securities, our estimate of expected losses is based upon reasonable and supportable forecasts over the expected lives of these assets. The reduction in the allowance for losses on Farm & Ranch loans and Farmer Mac Guaranteed Securities reflects the expected recovery rate based on loan-to-value ratios in those portfolios.

The cumulative effect adjustment for credit losses on LTSPCs was $0.9 million and was comprised of an increase of $1.0 million on Rural Utilities LTSPCs and a decrease of $0.1 million on Farm & Ranch LTSPCs.

For third quarter 2020, our forecasts continued to include the effects of the COVID-19 pandemic on economic factors such as land values, gross domestic product, credit spreads, and unemployment. The provision to Farmer Mac's allowance for losses for on-balance sheet assets was $0.6 million and was comprised of $1.2 million for expected losses on Rural Utilities loans and Farmer Mac Guaranteed Securities and a release of $0.5 million on Farm & Ranch loans and Farmer Mac Guaranteed Securities. Our economic factor forecast in the third quarter 2020 improved from our second quarter 2020 forecast. However, the impact of our updated economic factor forecast on our Rural Utilities portfolio was more

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than offset by net business volume growth. Similarly, updated third quarter economic factors had an impact on our Farm & Ranch portfolio where improving commodity prices and lower expected volatility in land values decreased expected losses for our lowest risk-rated assets. The provision to Farmer Mac's reserve for losses on our off-balance sheet portfolio was $0.5 million, primarily related to Farm & Ranch LTSPCs, and was driven by deteriorated credit quality in that portfolio in the third quarter.

Our estimates of expected losses are based on historical information and reasonable and supportable forecasts. Our reasonable and supportable forecasts incorporate economic factor forecasts and are sensitive to changes in those economics factor forecasts. As of September 30, 2020, our estimate of expected credit losses considered the economic volatility from the COVID-19 pandemic. In particular, the continued stabilization of credit spreads and uncertainty in unemployment expectations were the two economic factors that had the most significant impact. These economic factors also had a more significant impact on our estimate of expected losses in Farmer Mac's Rural Utilities portfolio than in the Farm & Ranch portfolio because of stable farm land values and stable credit quality in the Farm & Ranch portfolio during the first, second, and third quarters.

See Notes 5 and 6 to the consolidated financial statements and "Management's Discussion and Analysis of Financial Condition and Results of Operations—Risk Management—Credit Risk – Loans and Guarantees."

Guarantee and Commitment Fees.  The following table presents guarantee and commitment fees, which compensate Farmer Mac for assuming the credit risk on loans underlying off-balance sheet Farmer Mac Guaranteed Securities and LTSPCs, for the three and nine months ended September 30, 2020 and 2019:

Table 13

	For the Three Months Ended								For the Nine Months Ended
					Change								Change
	September 30, 2020		September 30, 2019		$		%		September 30, 2020		September 30, 2019		$		%
	(dollars in thousands)
Guarantee and commitment fees	$	3,159	$	3,349	$	(190)	(6)	%	$	9,495	$	10,265	$	(770)	(8)	%

In Farmer Mac's presentation of core earnings, guarantee and commitment fees include interest income and interest expense related to consolidated trusts owned by third parties to reflect management's view that the net interest income Farmer Mac earns is effectively a guarantee fee on the consolidated Farmer Mac Guaranteed Securities. The decrease in guarantee and commitment fees for the three and nine months ended September 30, 2020 compared to the same periods in 2019 was primarily due to decreased LTSPC volume. As adjusted for the core earnings presentation, guarantee and commitment fees were $4.7 million and $14.5 million for the three and nine months ended September 30, 2020, respectively, compared to $5.2 million and $15.9 million for the three and nine months ended September 30, 2019, respectively.

For more information about net income attributable to common stockholders, the composition of core earnings, and a reconciliation of net income attributable to common stockholders to core earnings, see "Management's Discussion and Analysis of Financial Condition and Results of Operations—Results of Operations." For more information about the non-GAAP measures Farmer Mac uses, see "Management's Discussion and Analysis of Financial Condition and Results of Operations—Use of Non-GAAP Measures."

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(Losses)/gains on financial derivatives.  The components of gains and losses on financial derivatives for the three and nine months ended September 30, 2020 and 2019 are summarized in the following table:

Table 14

	For the Three Months Ended								For the Nine Months Ended
					Change								Change
	September 30, 2020		September 30, 2019		$		%		September 30, 2020		September 30, 2019		$		%
	(dollars in thousands)
(Losses)/gains due to fair value changes	$	(4,149)	$	(7,117)	$	2,968	(42)	%	$	(1,933)	$	5,608	$	(7,541)	(134)	%
Accrual of contractual payments	3,613		(268)		3,881		(1448)	%	10		(4,370)		4,380		(100)	%
(Losses)/gains due to terminations or net settlements	(28)		25		(53)		(212)	%	(1,416)		(45)		(1,371)		3,047	%
(Losses)/gains on financial derivatives	$	(564)	$	(7,360)	$	6,796	(92)	%	$	(3,339)	$	1,193	$	(4,532)	(380)	%

These changes in fair value are primarily the result of fluctuations in long-term interest rates. The accrual of periodic cash settlements for interest paid or received from Farmer Mac's interest rate swaps that are undesignated financial derivatives is shown as expense related to financial derivatives. Payments or receipts to terminate undesignated derivative positions or net cash settled forward sales contracts on the debt of other GSEs and undesignated U.S. Treasury security futures and initial cash payments received upon the inception of certain undesignated swaps are included in "(Losses)/gains due to terminations or net settlements" in the table above. For undesignated swaps, when there is no direct payment arrangement between a swap dealer counterparty and a debt dealer issuing Farmer Mac's medium-term notes for a particular transaction, Farmer Mac may receive an initial cash payment from the swap dealer at the inception of the swap to offset dollar-for-dollar the amount of the discount on the associated hedged debt. Changes in the fair value of these swaps are recognized immediately in "(Losses)/gains on financial derivatives," while the offsetting discount on the hedged debt is amortized over the term of the debt as an adjustment to its yield. The amounts of initial cash payments received by Farmer Mac vary depending on the number of the aforementioned type of swaps it executes during a quarter.

Other Income. The following table presents other income for the three and nine months ended September 30, 2020 and 2019:

Table 15

	For the Three Months Ended								For the Nine Months Ended
					Change								Change
	September 30, 2020		September 30, 2019		$		%		September 30, 2020		September 30, 2019		$		%
	(dollars in thousands)
Late fees	$	236	$	360	$	(124)	(34)	%	$	1,124	$	929	$	195	21	%
Other	358		170		188		111	%	1,515		449		1,066		237	%
Total other income	$	594	$	530	$	64	12	%	$	2,639	$	1,378	$	1,261	92	%

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The increase in other fees is primarily due to an increase in the fees received from borrowers to modify their long-term fixed borrowing rate to a new lower rate.

Operating Expenses. The components of operating expenses for the three and nine months ended September 30, 2020 and 2019 are summarized in the following table:

Table 16

	For the Three Months Ended								For the Nine Months Ended
					Change								Change
	September 30, 2020		September 30, 2019		$		%		September 30, 2020		September 30, 2019		$		%
	(dollars in thousands)
Compensation and employee benefits	$	8,791	$	7,654	$	1,137	15	%	$	27,005	$	22,030	$	4,975	23	%
General and administrative	5,044		5,253		(209)		(4)	%	15,702		14,538		1,164		8	%
Regulatory fees	725		688		37		5	%	2,175		2,063		112		5	%
Total Operating Expenses	$	14,560	$	13,595	$	965	7	%	$	44,882	$	38,631	$	6,251	16	%

a.Compensation and Employee Benefits. The increase in compensation and employee benefits expenses for the three months ended September 30, 2020 compared to the same period in 2019 was primarily due to lower than expected bonus payments in the prior year period and increased headcount in the current period. The increase in compensation and employee benefits expenses for the nine months ended September 30, 2020 compared to the same period in 2019 was primarily due to an increase in bonus expense in first quarter 2020 due to 2019 financial performance and the severance payments made to an executive who resigned in first quarter 2020.

b.General and Administrative Expenses (G&A). The decrease in G&A expenses for the three months ended September 30, 2020 compared to the same period in 2019 was primarily due to reduced travel to attend in-person meetings and industry events. The increase in G&A expenses for the nine months ended September 30, 2020 compared to the same period in 2019 was primarily due to increased spending on software licenses and information technology consultants to support growth and strategic initiatives.

Income Tax Expense. The following table presents income tax expense and the effective income tax rate for the three and nine months ended September 30, 2020 and 2019:

Table 17

	For the Three Months Ended										For the Nine Months Ended
							Change										Change
	September 30, 2020			September 30, 2019			$		%		September 30, 2020			September 30, 2019			$		%
	(dollars in thousands)
Income tax expense	$	6,340		$	4,629		$	1,711	37	%	$	19,516		$	20,362		$	(846)	(4)	%
Effective tax rate	19.9		%	20.6		%			(0.7)	%	20.9		%	20.9		%			—	%

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Business Volume.  

The following table sets forth the net growth or decrease under Farmer Mac's lines of business for the three and nine months ended September 30, 2020 and 2019:

Table 18

Net New Business Volume – Farmer Mac Loan Purchases, Guarantees, LTSPCs, and AgVantage Securities
	For the Three Months Ended				For the Nine Months Ended
	September 30, 2020		September 30, 2019		September 30, 2020		September 30, 2019
	Net Growth/(Decrease)		Net Growth/(Decrease)		Net Growth/(Decrease)		Net Growth/(Decrease)
	(in thousands)
Farm & Ranch:
Loans	$	239,812	$	82,707	$	580,768	$	248,643
LTSPCs	(8,313)		19,668		(108,368)		(88,888)
USDA Guarantees:
USDA Securities	76,949		41,027		193,487		15,775
Farmer Mac Guaranteed USDA Securities	(19,626)		5,342		(78,533)		36,368
Rural Utilities:
Loans	7,786		85,623		438,062		673,930
LTSPCs	(14,100)		(8,692)		(33,326)		(33,444)
Institutional Credit:
AgVantage securities	(335,328)		(40,051)		(120,744)		355,450
Total purchases, guarantees, LTSPCs, and AgVantage securities	$	(52,820)	$	185,624	$	871,346	$	1,207,834

Our outstanding business volume was $22.0 billion as of September 30, 2020, a net decrease of $52.8 million from June 30, 2020 after taking into account all new business, maturities, and repayments on existing assets. This net decrease consisted of decreases of $335.3 million in Institutional Credit and $6.3 million in Rural Utilities, partially offset by increases of $231.5 million in Farm & Ranch and $57.3 million in USDA Guarantees.

The $231.5 million net increase in our Farm & Ranch line of business was comprised of a $399.5 million net increase in outstanding loan purchase volume, partially offset by net decreases of $159.7 million in loans held in consolidated trusts and $8.3 million in loans underlying LTSPCs and off-balance sheet Farmer Mac Guaranteed Securities. The net growth in third quarter 2020 reflected our ability to retain borrowers in a decreasing interest rate environment by proactively engaging with our customers and adjusting their rates and loan sizes to reflect current market conditions and their specific funding needs. Our net growth of 21.1% in Farm & Ranch loan purchases over the twelve months ended September 30, 2020 is significantly higher than the 3.5% net growth of the overall agricultural mortgage loan market over the twelve months ended June 30, 2020 (based on our analysis of bank and Farm Credit System call report data). During third quarter 2020, Farmer Mac syndicated a $15.0 million position of a newly purchased $59.2 million agricultural loan. This transaction represents new activity for Farmer Mac to broaden its relationships across the agricultural lending spectrum.

Our USDA Guarantees line of business grew by $57.3 million in third quarter 2020. The third quarter gross volume of $225.5 million was the highest gross volume that we have ever recorded in any quarter. This growth reflected the positive effect of adjustments that we made to our product structure in the

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second half of 2019 to more effectively meet customer demands in an increasingly competitive environment and in response to increased loan limits mandated by the 2018 Farm Bill described in "Management's Discussion and Analysis of Financial Condition and Results of Operations—Outlook" in this report.

The $335.3 million net decrease in the Institutional Credit line of business during third quarter 2020 was due primarily to three large counterparties who reduced their amount of outstanding credit in connection with scheduled maturities and payments on multiple AgVantage bonds. Changes in quarterly AgVantage securities volume are primarily driven by the generally larger transaction sizes for that product, scheduled maturity amounts for a particular quarter, the liquidity needs of Farmer Mac’s AgVantage counterparties, and changes in the pricing and availability of wholesale funding.

The $6.3 million net decrease in our Rural Utilities line of business was comprised of a $14.1 million net decrease in loans under LTSPCs, partially offset by $7.8 million net increase in outstanding loan purchase volume. During the third quarter, as part of our renewable energy project finance strategic initiative, Farmer Mac purchased a $10.0 million loan in connection with a wind project financing.

The level and composition of Farmer Mac’s outstanding business volume is based on the relationship between new business, maturities, and repayments on existing assets from quarter to quarter. This relationship in turn depends on a variety of factors both internal and external to Farmer Mac. The external factors include general market forces, competition, and our counterparties’ liquidity needs, access to alternative funding, desired products, and assessment of strategic factors. The internal factors include our assessment of profitability, mission fulfillment, credit risk, and customer relationships. For more information about potential growth opportunities in Farmer Mac's lines of business, see "Management's Discussion and Analysis of Financial Condition and Results of Operations—Outlook" in this report.

The following table sets forth information about the Farmer Mac Guaranteed Securities issued during the periods indicated:

Table 19

	For the Three Months Ended				For the Nine Months Ended
	September 30, 2020		September 30, 2019		September 30, 2020		September 30, 2019
	(in thousands)
Loans securitized and sold as Farm & Ranch Guaranteed Securities	$	36,562	$	23,539	$	64,612	$	141,543
Farmer Mac Guaranteed USDA Securities	—		9,506		—		57,853
AgVantage securities	211,908		402,611		1,202,327		1,887,475
Total Farmer Mac Guaranteed Securities Issuances	$	248,470	$	435,656	$	1,266,939	$	2,086,871

Farmer Mac either retains the loans it purchases or securitizes them and retains or sells Farmer Mac Guaranteed Securities backed by those loans.  The weighted-average age of the Farm & Ranch non-delinquent eligible loans purchased and retained (excluding the purchases of defaulted loans) during both third quarter 2020 and 2019 was less than one year. Of those loans, 68% and 57% had principal amortization periods longer than the maturity date, resulting in balloon payments at maturity, with a weighted-average remaining term to maturity of 23.2 years and 15.7 years for each period, respectively.

During third quarter 2020 and 2019, Farmer Mac securitized some of the Farm & Ranch loans it had purchased and sold the resulting Farmer Mac Guaranteed Securities, as shown above. During the three

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and nine months ended September 30, 2020 and 2019, Farmer Mac realized no gains or losses from the sale of Farmer Mac Guaranteed Securities or USDA Securities. Farmer Mac consolidates these loans and presents them as "Loans held for investment in consolidated trusts, at amortized cost" on the consolidated balance sheets. For the three and nine months ended September 30, 2020, no Farmer Mac Guaranteed Securities were sold to a related party to Farmer Mac. For the same periods in 2019, none and $63.1 million, respectively, of Farmer Mac Guaranteed Securities were sold to a related party (related by virtue of its owning more than 10% of Farmer Mac's Class A voting common stock).

The following table sets forth information about outstanding volume in each of Farmer Mac's four lines of business as of the dates indicated:

Table 20

Lines of Business - Outstanding Business Volume
	As of September 30, 2020		As of December 31, 2019
	(in thousands)
Farm & Ranch:
Loans	$	4,580,917	$	3,675,640
Loans held in trusts:
Beneficial interests owned by third party investors	1,276,407		1,600,917
LTSPCs	2,306,258		2,393,071
Guaranteed Securities	85,767		107,322
USDA Guarantees:
USDA Securities	2,388,033		2,199,072
Farmer Mac Guaranteed USDA Securities	347,095		421,103
Rural Utilities:
Loans	2,109,355		1,671,293
LTSPCs(1)	575,954		609,278
Institutional Credit
AgVantage Securities	8,319,502		8,440,246
Total	$	21,989,288	$	21,117,942

(1)As of both September 30, 2020 and December 31, 2019, includes $20.0 million related to one-year loan purchase commitments on which Farmer Mac receives a nominal unused commitment fee.

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The following table summarizes by maturity date the scheduled principal amortization of loans held, loans underlying off-balance sheet Farmer Mac Guaranteed Securities (excluding AgVantage securities) and LTSPCs, USDA Securities, and Farmer Mac Guaranteed USDA Securities as of September 30, 2020:

Table 21

Schedule of Principal Amortization as of September 30, 2020
	Loans Held		Loans Underlying Off-Balance Sheet Farmer Mac Guaranteed Securities and LTSPCs		USDA Securities and Farmer Mac Guaranteed USDA Securities		Total
	(in thousands)
2020	$	45,391	$	49,343	$	28,755	$	123,489
2021	345,908		284,701		117,967		748,576
2022	329,020		229,875		118,498		677,393
2023	336,023		207,961		122,972		666,956
2024	338,270		180,155		122,258		640,683
Thereafter	6,572,067		2,015,944		2,224,678		10,812,689
Total	$	7,966,679	$	2,967,979	$	2,735,128	$	13,669,786

Of the $22.0 billion outstanding principal balance of volume included in Farmer Mac's four lines of business as of September 30, 2020, $8.3 billion were AgVantage securities included in the Institutional Credit line of business.  Unlike business volume in the form of purchased loans, USDA Securities, and loans underlying LTSPCs and non-AgVantage Farmer Mac Guaranteed Securities, most AgVantage securities do not require periodic payments of principal based on amortization schedules and instead have fixed maturity dates when the secured general obligation is due. The following table summarizes by maturity date the outstanding principal amount of both on- and off-balance sheet AgVantage securities as of September 30, 2020:

Table 22

AgVantage Balances by Year of Maturity
	As of
	September 30, 2020
	(in thousands)
2020	$	633,585
2021	1,830,376
2022	1,585,268
2023	1,012,894
2024	828,108
Thereafter(1)	2,429,271
Total	$	8,319,502

(1)Includes various maturities ranging from 2025 to 2044.

The weighted-average remaining maturity of the outstanding AgVantage securities shown in the table above was 4.7 years as of September 30, 2020.  

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Outlook  

Farmer Mac continues to provide a stable source of liquidity, capital, and risk management tools as the secondary market that helps meet the financing needs of rural America. The pace of Farmer Mac’s growth will depend on the capital and liquidity needs of the lending institutions in the agricultural and rural financing business as well as the overall health of agriculture and rural borrowers in the sectors we serve.

Farmer Mac foresees opportunities for profitable growth across our lines of business driven by several key factors:

•As agricultural and rural utilities lenders seek to manage equity capital and return on equity capital requirements or seek to reduce exposure due to lending or concentration limits, Farmer Mac can provide relief for those institutions through loan and portfolio purchases, participations, guarantees, LTSPCs, or wholesale funding.

•While overall loan growth within the rural utilities industry appears to be moderate in the near term due to generally flat demand for capital, future growth opportunities may increase in Farmer Mac’s Rural Utilities line of business from deepening business relationships with eligible counterparties, broadband-related capital expenditures, and the exploration of new types of loan products. These opportunities may be limited by sector growth, credit quality, and the competitiveness of Farmer Mac’s products.

•As a result of business and product development efforts, and continued interest in the agricultural asset class from institutional investors, Farmer Mac’s customer base and product set continue to expand, which may generate more demand for Farmer Mac’s products from new sources.

•Consolidation within the agricultural finance industry, coupled with Farmer Mac’s relationships with larger regional and national lenders, continue to provide opportunities that could influence Farmer Mac’s loan demand and increase the average transaction size within Farmer Mac’s Farm & Ranch line of business.

•Expansion and refinancing opportunities for agricultural producers resulting from a decrease in interest rates have increased financing requirements for mergers and acquisitions, consolidation, and vertical integration across many sectors of the agricultural industry, which may also generate demand for Farmer Mac’s loan products.

The COVID-19 pandemic and related efforts to contain it continue to create disruptions to the global economy. Government stimulus programs designed to mitigate the economic impacts of the pandemic as well as significant liquidity support by the Federal Reserve to facilitate the functioning of the capital markets has reduced volatility to the economy and the sectors we serve. However, the duration, severity, and continued spread of the pandemic and the ongoing effectiveness of government efforts taken to contain COVID-19 and mitigate public health and economic effects continue to evolve and remain uncertain. For a further discussion of the uncertainties and risks associated with the COVID-19 pandemic on Farmer Mac and its business, see the factors discussed under "Risk Factors" in Part II, Item 1A of this report

Farmer Mac’s mission is to support rural America during this pandemic, and the disruptions caused by COVID-19 may present some new and expanded opportunities for Farmer Mac to help meet the financing needs of rural America as well as presenting uncertainties and risks. The pandemic's effect on our growth objectives and outlook will depend on many factors, including:

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•The potential negative economic impact to rural and agricultural borrowers due to a resurgence and prolonging of the pandemic and recession, the length of time before normal economic and operating conditions can resume, and whether there are lingering effects to the economy after the COVID-19 pandemic is over as a result of the disruption to the global economy, the domestic agricultural economy, and recession.

•Increasing borrower payment deferral requests and the duration of approved deferrals, including payments made to holders of Farmer Mac Guaranteed Securities to cover principal and interest shortfalls, could consume some capital which would otherwise have been available for certain planned growth initiatives. For more information about the impact of COVID-19 on Farmer Mac's payment deferral requests received to date, see "Management's Discussion and Analysis of Financial Condition and Results of Operations—Risk Management—Credit Risk – Loans and Guarantees."

•Stress on commodity and agriculture exports as a result of global trade disruptions caused by a resurgence of the COVID-19 pandemic and geopolitical trade disputes, which could create downward pressure on commodity prices and further stress borrowers’ liquidity and negatively impact loan growth opportunities.

•The inability of borrowers in the pandemic to close on agricultural or renewable energy loans due to limited access to local or state administrative offices, delays in receiving equipment components, installation inefficiencies caused by social distancing among workers, and difficulties in obtaining inspections and grid interconnection on a timely basis could limit our opportunities to purchase agricultural or renewable energy loans.

•Delays and postponements of planned or potential mergers and acquisitions, consolidations, and vertical integrations as a result of the COVID-19 pandemic and, consequently, a potential reduction in the need for Farmer Mac’s products and services until the global economy recovers and the flow of transactions returns to pre-pandemic levels.

•Disruptions in the capital markets and the widening of credit spreads could impact Farmer Mac’s funding costs and could result in higher interest rates charged for our products and services, which could adversely affect our competitiveness in the sectors we serve.

•If borrowers seek to obtain additional financing and liquidity from lenders to maintain operations and production during this time, or to make up for lost productivity due to shutdowns, delays, and social distancing requirements, these short-term funding requirements could create additional growth opportunities for Farmer Mac as other lenders look to manage lending limits and credit concentrations as short-term financing demands arise.

•Financial market volatility, coupled with uncertainty regarding the long-term impacts of the pandemic, is causing some financial institutions to delay or cease capital deployment to many sectors that Farmer Mac serves. While these reductions could reduce our loan purchase opportunities, Farmer Mac could also provide a much-needed source of secondary market liquidity to help stimulate capital deployment during this time of uncertainty.

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Operating Expense. Farmer Mac continues to expand its investments in human capital, technology, and business infrastructure to increase capacity and efficiency as it seeks to accommodate its growth opportunities and achieve its long-term strategic objectives. Accordingly, Farmer Mac expects continued increases in its operating expenses over the next several years corresponding to business and revenue growth. We expect these efforts to continue and increase over the next 12 - 18 months as we innovate and grow our business.

Operations. On March 12, 2020, Farmer Mac activated its business continuity plan and has been operating uninterruptedly since then, with all of its employees working remotely from their homes. Farmer Mac has provided guidance and support to all of its employees to ensure that they have the tools and knowledge needed to effectively work from home, and Farmer Mac’s technology platform and business continuity plan have been functioning as designed in support of all functions of the organization with no material disruption of business. As a secondary market participant in the agricultural and rural utility lending space, Farmer Mac's business model is already based on a remote interface with its customers and vendors. We do not expect Farmer Mac's remote-working environment to have a material effect on our operations either in the near term or for the foreseeable future.

Agricultural Industry. The agricultural industry includes many diverse sectors that respond in different ways to changes in economic conditions. Those individual sectors often are affected differently, sometimes positively and sometimes negatively, by prevailing domestic and global economic factors and regional weather conditions. The interconnectedness between sectors typically results in cycles where one or more segments may be under stress while others are not.

The COVID-19 pandemic continues to impact the agricultural sector, although economic conditions continued to improve during third quarter 2020. Sudden school and restaurant closures in March and April dramatically altered the supply and demand functions for food. U.S. Census Advance Retail Sales Data indicates that, after dropping 50 percent in April, U.S. consumer spending for food services away from home rebounded to 85 percent of pre-pandemic levels. Much of the decline has been picked up in consumer spending at grocery stores, which was up more than 10 percent in September 2020 compared to the prior year. Farm production and food processing take a higher net margin of the food dollar spent at home, so the shift of consumer spending on food at home could offset some of the losses from sales to restaurants and schools. According to data from the U.S. Energy Information Administration, after dropping nearly 50 percent in April, ethanol production rebounded to over 90 percent of pre-pandemic levels through October as drivers returned to the roads. Ethanol is a primary demand driver for corn. Many agricultural commodity prices, rebounded significantly in September and October on reduced global supplies and increased foreign demand, particularly from China. Farm labor and food processing worker health and availability remain a top industry concern as a resurgence of COVID-19 cases could adversely affect the food processing industry again this year and into 2021.

The decline in revenue experienced by many agricultural producers during the first nine months of 2020 had multiple offsets to help support producers’ profitability. First, farm expenses fell for many producers during the first half of 2020. Lower energy prices improved the cost of fuel and fertilizer ahead of the planting season. Lower grain prices in the second quarter led to a temporary decrease in animal feed input costs, and lower replacement animal prices improved the cost structure for many protein producers. Second, USDA issued a final $3.7 billion Market Facilitation Program (MFP) cash payment in April and May 2020 to address market losses from trade disruptions. Third, in response to the COVID-19 pandemic, Congress passed a series of measures, including the CARES Act on March 27, 2020, which provided over $2 trillion in economic stimulus to support various aspects of the U.S. economy. The

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CARES Act contained a $9.5 billion emergency fund for the USDA aimed toward providing help to livestock, dairy, and produce providers who sell locally. It also included a $14 billion replenishment of the Commodity Credit Corporation ("CCC"), a line of credit at the U.S. Treasury Department that USDA can use to help crop and livestock producers. In April 2020, the USDA announced that it would provide $19 billion of assistance through the Coronavirus Food Assistance Program ("CFAP"). CFAP used the funding and authorities provided in the CARES Act, the Families First Coronavirus Response Act, and other USDA existing authorities to provide $16 billion in direct payments to distribute to producers and $3 billion in food purchases. As of October 25, 2020, the USDA had distributed $10.3 billion in CFAP payments. Farmers and ranchers were also eligible to participate in the Small Business Administration’s Paycheck Protection Program (PPP). Through the close of the PPP application period of August 8, 2020, more than $8.1 billion in PPP loans had been disbursed to businesses involved in agriculture, forestry, fishing, and hunting. Finally, on September 17, 2020, the USDA announced the second round of CFAP funding through the authorities of the CCC for up to $14 billion in direct support for eligible commodities ("CFAP 2"). As of October 25, 2020, the USDA had distributed more than $7.6 billion in payments through CFAP 2.

Farmland values have held steady in early 2020 after rising at approximately the rate of inflation for the last two years. Data released in 2020 by the USDA indicates an average increase in farm real estate values of 0.2% in 2020 in Corn Belt states (Illinois, Indiana, Iowa, Missouri, and Ohio), but a decrease of 2.3% in Northern Plains states (Kansas, Nebraska, North Dakota, and South Dakota). In all other regions, farmland value averages are reported to be flat to increasing. The COVID-19 pandemic has slowed public auctions and sales in 2020, but transactions have picked up in the third quarter, and values have been largely level through much of the year. While regional averages for farmland values provide a good barometer for the overall movement in U.S. farmland values, economic forces affecting land markets are highly localized, and some markets may experience greater volatility than state or national averages indicate.

Over the past few decades, the U.S. agricultural industry has become increasingly connected to global trade, and agricultural export demand depends significantly on trading relationships in numerous foreign markets, as well as on foreign exchange rates. A prolonged decline in global economic growth or continued tightening in trade policies and agreements could adversely affect the demand for certain U.S. agricultural exports, which may result in downward pressure on commodity prices. Also, the strength of the U.S. dollar relative to trading-partner currencies has been elevated since 2016 (as measured by the U.S. Dollar Index). A strong U.S. dollar decreases the competitiveness of U.S. agricultural exports by raising U.S. prices relative to other countries’ producers. The value of the U.S. dollar weakened in the second and third quarters, providing some relief to export sales. However, the COVID-19 pandemic has the potential to disrupt global demand for U.S. agriculture into 2021 due to lower incomes and reduced economic activity. Many of the primary trading partners and the U.S. maintain good trade relations evidenced by recently-enacted free trade agreements (e.g., Canada, Mexico, and Japan). Agricultural export sales to China are up year-to-date in 2020 compared to 2019, but there exists considerable uncertainty surrounding growth expectations for this market.

Weather conditions also play a sizable role in agricultural economic conditions. While growing conditions were generally favorable in the Midwest for much of the year, severe storms can significantly damage crops. An intense derecho thunderstorm in August 2020 affected thousands of acres across Iowa and Illinois, lowering state-specific grain yield expectations. Damage from those types of weather events is generally covered by federal crop insurance policies, and roughly 95 percent of corn and soybean acres in Iowa and Illinois are covered by crop insurance according to USDA data. Wildfires are another weather event that can adversely affect agricultural production. The 2020 California wildfire season has been one

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of the worst in recent history, and the California Department of Forestry and Fire Protection estimates that over four million acres have burned through October 25, 2020. Much of California agriculture lies in valleys that were not directly affected by active fires. Approximately 1% of Farmer Mac’s Farm & Ranch portfolio is located in Napa or Sonoma Counties, where the Glass Fire caused significant direct and indirect damage to vineyards and wineries. Farmer Mac will continue to monitor exposure to the wildfires, but initial indications show limited exposure.

Farmer Mac has experienced higher 90-day delinquencies and substandard asset ratings in recent quarters. The increase is a function of agricultural cycles trending toward tighter industry profitability levels compared to peaks experienced from 2012 to 2015. To date, the fluctuations in 90-day delinquencies and the increase in substandard assets have not yet translated into rising credit losses. Farmer Mac believes that its portfolio is highly diversified, both geographically and by commodity and that its portfolio has been underwritten to high credit quality standards. Therefore, Farmer Mac believes that its portfolio is well-positioned to endure reasonably foreseeable volatility in commodity prices and farmland values. However, the COVID-19 pandemic and a subsequent economic downturn increases the level of uncertainty inherent in the agricultural credit sector and could alter the trajectory of the current agricultural cycle. A prolonged disruption may result in elevated loan delinquencies, and a higher percentage of loans rated substandard as more payments reach 90-days past their July 1 payment due date. Loan deferments approved by Farmer Mac through September 30, 2020 represent 1.7% of our total outstanding business volume, as measured by unpaid principal balance. This amount could fluctuate in future quarters based on loan performance and economic conditions in the coming months, but roughly 80 percent of Farm & Ranch and USDA loans made a payment between April 1 and September 30. For more information about the loan balances, loan-to-value ratios, 90-day delinquencies, and substandard asset rate for the Farm & Ranch loans in Farmer Mac’s portfolio as of September 30, 2020, see "Management's Discussion and Analysis of Financial Condition and Results of Operations—Risk Management—Credit Risk – Loans and Guarantees."

The Agricultural Improvement Act of 2018, also referred to as the "Farm Bill," increased the authorized limit for the amount of new guarantees issued by the USDA under the Consolidated Farm and Rural Development Act (which are eligible for Farmer Mac's USDA Guarantees line of business) from $3.026 billion to $7.0 billion for each government fiscal year through September 2023. Also, the limit for the size of individual loans to which these guarantees are applied was increased from $1.399 million to $1.75 million, which thereby increases the authorized amount of the USDA-guaranteed portion for an individual loan. These higher loan limits contributed to additional growth in the USDA Guarantees purchased by Farmer Mac in 2020.

Farmer Mac also continues to monitor state legislation and regulations that could impact U.S. agriculture. For example, groundwater management regulations, including in California, may result in tighter restrictions on groundwater usage that could affect agricultural producers in the future. Farmer Mac will monitor the effects that any changes in legislation or regulation (federal or state) could have on Farmer Mac or its customers.

Rural Utilities Industry.

The rural energy industry has less cyclicality than the agricultural sector, but does trend with conditions in the general economy. Higher levels of unemployment and adverse credit markets are typically associated with drops in energy demand (i.e., lower commercial, industrial, or residential demand) and increases in industry ratings downgrades. The economic distress caused by the COVID-19 pandemic has led to

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historic levels of unemployment as well as reduced demand from the commercial and industrial sectors. According to data from the U.S. Energy Information Administration, electricity sales to commercial and industrial consumers dropped 8 percent year-to-date through August 2020 compared to 2019. However, residential sales during the same period were up 3 percent compared to 2019 as residents spent more time at home during state, local, and self-imposed quarantines. Residential power sales are typically significantly more profitable than those for commercial and industrial consumers, thus some of the profitability reduction from the loss of commercial and industrial sales can be offset by the change in sales mix. Sector sales mix varies from utility to utility based on the characteristics of the region served by the utility, so the degree of profitability offset will differ. Some rural electric cooperatives participated in the Paycheck Protection Program (PPP) and received forgivable loans through that program, which are another potential source to offset any profitability reduction. The COVID-19 pandemic has also highlighted the greater need for and interest in access to broadband internet in rural areas, and there was more than $300 million in support authorized in the CARES Act to support healthcare industry telecommunications and rural broadband grants. Farmer Mac expects the heightened level of uncertainty surrounding the economic impacts of COVID-19 to continue throughout 2020, however through mid-2020 Farmer Mac has not observed material degradation in the financial performance of its Rural Utilities portfolio.

During the first nine months of 2020, the sudden decrease of interest rates to historic lows drove a significant amount of financing activity on the part of rural electric cooperatives. Prospects for loan growth within the rural utilities industry overall appear to be moderate in the short to medium term as ongoing normal-course capital expenditures related to maintaining and upgrading utility infrastructure continue at typical levels. Farmer Mac's future growth opportunities for lending to the electrical cooperative industry may be affected by the demand for electric power in rural areas, capital expenditures by electric cooperatives driven by regulatory or technological changes, the continuation of a low interest rate environment, and competitive dynamics within the rural utilities cooperative finance industry. However, the Federal Communication Commission’s upcoming Rural Development Opportunity Fund (RDOF) auction for up to $16 billion in broadband-related operating cost subsidies may provide a catalyst for capital demands from rural electric cooperatives who seek to develop and deploy broadband services. The growth in renewable energy generation, deployment of energy storage technologies, expansion of broadband service in rural areas, and the deepening of relationships with new and existing counterparties, all may provide new business opportunities for Farmer Mac. To address some of these trends, Farmer Mac has deployed new financing products tailored to the renewable energy sector, which represents a new market opportunity for Farmer Mac. Under this new program, Farmer Mac purchased solar project participation interests from a new counterparty during first quarter 2020 as well as wind project participation interests from an existing counterparty in third quarter 2020. Farmer Mac anticipates further growth in this area during the remainder of 2020.

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Balance Sheet Review

The following table summarizes the balance sheet as of the periods indicated:

Table 23

	As of					Change
	September 30, 2020			December 31, 2019		$			%
	(in thousands)
Assets
Cash and cash equivalents	$	910,592		$	604,381	$	306,211		51	%
Investment securities, net of allowance	3,577,222			3,004,875		572,347			19	%
Farmer Mac Guaranteed Securities, net of allowance	8,712,208			8,590,476		121,732			1	%
USDA Securities	2,417,678			2,241,073		176,605			8	%
Loans, net of allowance	8,105,647			6,981,440		1,124,207			16	%
Other	275,490			287,129		(11,639)			(4)	%
Total assets	$	23,998,837	23,998,837	$	21,709,374	$	2,289,463		11	%
Liabilities
Notes Payable	21,589,285			19,098,648		2,490,637			13	%
Other	1,479,207			1,811,450		(332,243)			(18)	%
Total liabilities	$	23,068,492		$	20,910,098	$	2,158,394	2158394	10	%
Total equity	930,345			799,276		131,069			16	%
Total liabilities and equity	$	23,998,837		$	21,709,374	$	2,289,463		11	%

Assets. The increase in total assets was primarily attributable to the net growth in our outstanding business volume across most lines of business.

The increase in cash and cash equivalents and investment securities was primarily due to a decision to increase our liquidity investment portfolio due to the COVID-19 pandemic and to support our program asset growth.

Liabilities. The increase in total liabilities was primarily due to an increase in total notes payable to support our program asset growth.

Equity. The increase in total equity was primarily due to the issuance of the Series E Preferred Stock and the Series F Preferred Stock and an increase in net income. These increases were partially offset by the redemption of the Series A Preferred stock and an increase in other comprehensive losses, net of tax, primarily due to decreases in the fair value of available-for-sale securities and financial derivatives designated in cash flow hedge accounting relationships.

Off-Balance Sheet Arrangements 

Farmer Mac offers approved lenders two credit enhancement alternatives to increase their liquidity or lending capacity while retaining the cash flow benefits of their loans: (1) Farmer Mac Guaranteed Securities, which are available through each of the Farm & Ranch, USDA Guarantees, Rural Utilities, and Institutional Credit lines of business; and (2) LTSPCs, which are available through the Farm & Ranch and Rural Utilities lines of business. For securitization trusts where Farmer Mac is the primary beneficiary, the trust assets and liabilities are included on Farmer Mac's consolidated balance sheet. For securitization trusts where Farmer Mac is not the primary beneficiary and in the event of de-consolidation, both of these

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alternatives create off-balance sheet obligations for Farmer Mac. See Note 6 to the consolidated financial statements for more information about consolidation and Farmer Mac's off-balance sheet business activities.

Risk Management

Credit Risk – Loans and Guarantees.  

COVID-19

Farmer Mac continues to monitor the effects of the COVID-19 pandemic on Farmer Mac's credit risk related to Farmer Mac's borrower exposures. Since first quarter 2020, Farmer Mac has seen an increase in payment deferment requests from its network of loan servicers on behalf of borrowers in Farmer Mac's Farm & Ranch loan portfolio, although deferment requests have been below our expectations. Our early expectations for payment deferment requests were based on forecasts provided by other GSEs and other Farm Credit System institutions. To address the requests that we have received, Farmer Mac has established criteria for approval of payment deferments for borrowers impacted by the COVID-19 pandemic and have communicated these criteria to key counterparties. Farmer Mac will monitor the criteria as the impact of the pandemic continues to unfold and determine if any changes should be made. Most of the payment deferments Farmer Mac has approved and executed for loans it has purchased or securitized in its Farm & Ranch portfolio have been for up to six months, with the deferred principal and interest payments capitalized into the unpaid principal balance of the loan. The unpaid principal balance is then re-amortized over the remaining term of the loan. Approved and executed payment deferments for loans in LTSPCs have varied from three-month payment deferments for principal and interest to deferred interest-only payments for up to twelve months, depending on the applicable LTSPC lender's deferment policy. As of September 30, 2020, we have executed payment deferments in the Farm & Ranch and USDA Securities portfolios related to an aggregate of $374.5 million of unpaid principal balances, which represents 1.70% of our total outstanding business volume. The period of time covered by the payment deferments is typically in the range of three to six months. At the end of each payment deferment, the principal and interest related to the approved deferments will be capitalized into the outstanding unpaid principal balance and amortized over the remaining life of the loan. As of October 15, 2020, $4.6 million of Farm & Ranch COVID-19 deferments have been repaid in full, and another $153.3 million of Farm & Ranch COVID-19 deferments have ended their deferment periods and none are delinquent.

In addition, FCA has issued regulatory guidance encouraging Farmer Mac to work with its lending and servicing partners in approving and executing servicing actions for borrowers impacted by COVID-19. The table below presents a cumulative summary of COVID-19 payment deferments through September 30, 2020 in the Farm & Ranch line of business. Farmer Mac has not received any payment deferment requests in the Rural Utilities line of business. For more information about FCA's regulatory guidance related to the COVID-19 pandemic, see "Management's Discussion and Analysis of Financial Condition and Results of Operations—Regulatory Matters."

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Table 24

Farm & Ranch COVID-19 Deferments Summary
	As of September 30, 2020(1)
	Unpaid Principal Balance
	Requested, but not yet Approved				Approved, but not yet Executed		Not Approved		Approved and Executed
Farm & Ranch:	(in thousands)
On-balance sheet:
Loans held for investment	$	289			$	34,451	$	445	$	72,875
Loans held in consolidated trusts	—				4,469		1,153		32,402
On-balance sheet total	$	289			$	38,920	$	1,598	$	105,277
Off-balance sheet:
LTSPCs	578				27,956		4,369		185,364
Farm & Ranch Total	$	867	$	—	$	66,876	$	5,967	$	290,641
USDA:
USDA Securities	$	17,707			$	816	$	5,985	$	78,233
Farmer Mac Guaranteed USDA Securities	333				—		2,129		5,577
USDA Total	$	18,040			$	816	$	8,114	$	83,810
Farm & Ranch and USDA Total Deferments	$	18,907			$	67,692	$	14,081	$	374,451

(1) Loans under a COVID-19 deferment are not considered to be past due.

Farm & Ranch

Farmer Mac's direct credit exposure to Farm & Ranch loans held and loans underlying Farm & Ranch Guaranteed Securities and LTSPCs as of September 30, 2020 was $8.2 billion across 48 states. For more information about Farmer Mac's underwriting and collateral valuation standards for Farm & Ranch loans, see "Business—Farmer Mac's Lines of Business—Farm & Ranch—Underwriting and Collateral Valuation (Appraisal) Standards" in Farmer Mac’s Annual Report on Form 10-K for the fiscal year ended December 31, 2019 filed with the SEC on February 25, 2020.

Farmer Mac has indirect credit exposure to the Farm & Ranch loans that secure AgVantage securities included in the Institutional Credit line of business. As of September 30, 2020, Farmer Mac had not experienced any credit losses on any AgVantage securities. See "Management's Discussion and Analysis of Financial Condition and Results of Operations—Risk Management—Credit Risk – Institutional" for more information about Farmer Mac's credit risk on AgVantage securities.

Farmer Mac considers a loan's original loan-to-value ratio as one of many factors in evaluating loss severity. Loan-to-value ratios depend on the market value of a property, as determined in accordance with Farmer Mac's collateral valuation standards.  As of September 30, 2020 and December 31, 2019, the average unpaid principal balances for loans outstanding in the Farm & Ranch line of business was $731,000 and $683,000, respectively. Farmer Mac calculates the "original loan-to-value" ratio of a loan by dividing the original loan principal balance by the original appraised property value. This calculation does not reflect any amortization of the original loan balance or any adjustment to the original appraised value to provide a current market value. The original loan-to-value ratio of any cross-collateralized loans is calculated on a combined basis rather than on a loan-by-loan basis. The weighted-average original loan-to-value ratio for Farm & Ranch loans purchased during third quarter 2020 was 43%, compared to 51% for

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loans purchased during third quarter 2019. The weighted-average original loan-to-value ratio for all Farm & Ranch loans held and all loans underlying off-balance sheet Farm & Ranch Guaranteed Securities and LTSPCs was 52% and 51% as of September 30, 2020 and December 31, 2019, respectively. The weighted-average original loan-to-value ratio for all 90-day delinquencies was 50% and 53% as of September 30, 2020 and December 31, 2019, respectively.

The weighted-average current loan-to-value ratio (the loan to-value ratio based on original appraised value and current outstanding loan amount adjusted to reflect amortization) for Farm & Ranch loans held and loans underlying off-balance sheet Farm & Ranch Guaranteed Securities and LTSPCs was 45% as of both September 30, 2020 and December 31, 2019.

For more information about the credit quality of Farmer Mac's Farm & Ranch portfolio and the associated allowance for losses please refer to Note 5 to the consolidated financial statements. Activity affecting the allowance for loan losses and reserve for losses is discussed in "Management's Discussion and Analysis of Financial Condition and Results of Operations—Results of Operations—Provision for and Release of Allowance for Loan Losses and Reserve for Losses."

Farmer Mac's 90-day delinquency measure includes loans 90 days or more past due, as well as loans in foreclosure and non-performing loans where the borrower is in bankruptcy. As of September 30, 2020, Farmer Mac's 90-day delinquencies were $88.0 million (1.07% of the Farm & Ranch portfolio), compared to $68.7 million (0.86% of the Farm & Ranch portfolio) as of June 30, 2020 and $61.0 million (0.78% of the Farm & Ranch portfolio) as of December 31, 2019. Those 90-day delinquencies were comprised of 62 delinquent loans as of September 30, 2020, compared to 54 delinquent loans as of June 30, 2020 and 57 delinquent loans as of December 31, 2019. The sequential increase in 90-day delinquencies is primarily due to the seasonal payment pattern associated with loans that have annual (January 1st) and semi-annual (January 1st and July 1st) payment terms, which account for most of the loans in the Farm & Ranch portfolio. Farmer Mac's 90-day delinquencies have historically fluctuated from quarter to quarter, both in dollars and as a percentage of the outstanding Farm & Ranch portfolio, with higher levels generally observed at the end of the first and third quarters and lower levels generally observed at the end of the second and fourth quarters of each year as a result of the annual (January 1st) and semi-annual (January 1st and July 1st) payment terms of most Farm & Ranch loans. The sequential increase in 90-day delinquencies was driven by two commodity groups – crops and livestock. The other commodity groups either experienced decreases or remained stable. The top ten borrower exposures over 90 days delinquent represented over half of the 90-day delinquencies as of September 30, 2020. Loans under COVID-19 deferment are not considered past due and are not included in our delinquent loan statistics. Farmer Mac believes that it remains adequately collateralized on its delinquent loans.

Our 90-day delinquency rate as of September 30, 2020 exceeded Farmer Mac's historical average. In the near-term, our delinquency rate is expected to exceed our historical average due to the expected impact of the COVID-19 pandemic on the agricultural economy. Farmer Mac's average 90-day delinquency rate as a percentage of its Farm & Ranch portfolio over the last 15 years is approximately 1%. The highest 90-day delinquency rate observed during that period occurred in 2009 at approximately 2%, which coincided with increased delinquencies in loans within Farmer Mac's then-held ethanol loan portfolio that Farmer Mac no longer holds.

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The following table presents historical information about Farmer Mac's 90-day delinquencies in the Farm & Ranch line of business compared to the unpaid principal balance of all Farm & Ranch loans held and loans underlying off-balance sheet Farm & Ranch Guaranteed Securities and LTSPCs:

Table 25

	Farm & Ranch Line of Business		90-Day Delinquencies		Percentage
	(dollars in thousands)
As of:
September 30, 2020	$	8,249,349	$	88,041	1.07	%
June 30, 2020	8,017,850		68,682		0.86	%
March 31, 2020	7,811,594		79,722		1.02	%
December 31, 2019	7,776,950		60,954		0.78	%
September 30, 2019	7,393,728		59,691		0.81	%
June 30, 2019	7,291,352		28,045		0.38	%
March 31, 2019	7,215,585		52,366		0.73	%
December 31, 2018	7,233,971		26,881		0.37	%
September 30, 2018	7,072,018		37,545		0.53	%

Across all of Farmer Mac's lines of business, 90-day delinquencies represented 0.40% of total outstanding business volume as of September 30, 2020, compared to 0.29% as of December 31, 2019 and 0.29% as of September 30, 2019. The following table presents outstanding Farm & Ranch loans held and loans underlying LTSPCs and off-balance sheet Farm & Ranch Guaranteed Securities and 90-day delinquencies as of September 30, 2020 by year of origination, geographic region, commodity/collateral type, original loan-to-value ratio, and range in the size of borrower exposure:

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Table 26

Farm & Ranch 90-Day Delinquencies as of September 30, 2020
	Distribution of Farm & Ranch Line of Business		Farm & Ranch Line of Business		90-Day Delinquencies(1)		Percentage
	(dollars in thousands)
By year of origination:
2010 and prior	8	%	$	629,983	$	6,095	0.97	%
2011	2	%	141,080		921		0.65	%
2012	4	%	345,488		—		—	%
2013	6	%	495,888		2,548		0.51	%
2014	5	%	415,424		1,383		0.33	%
2015	7	%	579,321		6,600		1.14	%
2016	11	%	917,149		24,209		2.64	%
2017	12	%	985,401		25,327		2.57	%
2018	10	%	867,825		8,604		0.99	%
2019	15	%	1,205,009		10,250		0.85	%
2020	20	%	1,666,781		2,104		0.85	%
Total	100	%	$	8,249,349	$	88,041	1.07	%
By geographic region(2):
Northwest	12	%	$	1,015,736	$	12,122	1.19	%
Southwest	34	%	2,802,361		13,036		0.47	%
Mid-North	29	%	2,362,710		30,314		1.28	%
Mid-South	13	%	1,068,422		17,168		1.61	%
Northeast	4	%	357,810		4,013		1.12	%
Southeast	8	%	642,310		11,388		1.77	%
Total	100	%	$	8,249,349	$	88,041	1.07	%
By commodity/collateral type:
Crops	51	%	$	4,200,252	$	49,766	1.18	%
Permanent plantings	23	%	1,922,741		8,388		0.44	%
Livestock	19	%	1,513,137		16,823		1.11	%
Part-time farm	6	%	485,778		145		0.03	%
Ag. Storage and Processing	1	%	109,369		12,865		11.76	%
Other	—		18,072		54		0.30	%
Total	100	%	$	8,249,349	$	88,041	1.07	%
By original loan-to-value ratio:
0.00% to 40.00%	17	%	$	1,433,215	$	6,627	0.46	%
40.01% to 50.00%	25	%	2,043,177		40,791		2.00	%
50.01% to 60.00%	35	%	2,883,327		38,041		1.32	%
60.01% to 70.00%	19	%	1,574,042		2,472		0.16	%
70.01% to 80.00%(3)	4	%	299,582		—		—	%
80.01% to 90.00%(3)	—	%	16,006		110		0.69	%
Total	100	%	$	8,249,349	$	88,041	1.07	%
By size of borrower exposure(4):
Less than $1,000,000	29	%	$	2,426,763	$	12,878	0.53	%
$1,000,000 to $4,999,999	35	%	2,868,618		33,358		1.16	%
$5,000,000 to $9,999,999	15	%	1,198,942		12,559		1.05	%
$10,000,000 to $24,999,999	12	%	968,893		29,246		3.02	%
$25,000,000 and greater	9	%	786,133		—		—	%
Total	100	%	$	8,249,349	$	88,041	1.07	%

(1)Includes loans held 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.

(2)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).

(3)Primarily part-time farm loans. Loans with an original loan-to-value ratio of greater than 80% are required to have private mortgage insurance.

(4)Includes aggregated loans to single borrowers or borrower-related entities.

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Another indicator that Farmer Mac considers in analyzing the credit quality of its Farm & Ranch portfolio is the level of internally-rated "substandard" assets, both in dollars and as a percentage of the outstanding Farm & Ranch portfolio. Assets categorized as "substandard" 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 September 30, 2020, Farmer Mac's substandard assets were $321.2 million (3.9% of the Farm & Ranch portfolio), compared to $304.9 million (3.8% of the Farm & Ranch portfolio) as of June 30, 2020 and $310.0 million (4.0% of the Farm & Ranch portfolio) as of December 31, 2019. Those substandard assets were comprised of 361 loans as of September 30, 2020, 368 loans as of June 30, 2020, and 353 loans as of December 31, 2019.

The increase of $16.3 million in substandard assets during third quarter 2020 was primarily driven by credit downgrades in our off-balance sheet portfolio, partially offset by credit upgrades in our on-balance sheet portfolio during the quarter. Substandard assets increased as a percentage of the total on- and off-balance sheet portfolio primarily due to the credit downgrades in our off-balance sheet portfolio. The percentage of substandard assets within the portfolio closely approximates the historical average.

Farmer Mac's average substandard assets as a percentage of its Farm & Ranch portfolio over the last 15 years is approximately 4%. Due to the COVID-19 pandemic, we believe that the substandard rate may rise above that historical average in the short-term. The full extent of the impact of the COVID-19 pandemic remains to be seen, and we will continue to monitor its impact on our substandard asset rate. The highest substandard asset rate observed during the last 15 years occurred in 2010 at approximately 8%, which coincided with an increase in substandard loans within Farmer Mac's then-held ethanol portfolio that Farmer Mac no longer holds. If Farmer Mac's substandard asset rate increases from current levels, it is likely that Farmer Mac's provision to the allowance for loan losses and the reserve for losses will also increase.

Although some credit losses are inherent to the business of agricultural lending, Farmer Mac believes that losses associated with the current agricultural credit cycle will be moderated by the strength and diversity of its portfolio, which Farmer Mac believes is adequately collateralized.

The following table presents the current loan-to-value ratios for the Farm & Ranch portfolio, as disaggregated by internally assigned risk ratings:

Table 27

Farm & Ranch current loan-to-value ratio by internally assigned risk rating as of September 30, 2020
	Acceptable		Special Mention		Substandard		Total
	(in thousands)
Current loan-to-value ratio(1):
0.00% to 40.00%	$	2,535,414	$	91,379	$	100,905	$	2,727,698
40.01% to 50.00%	2,004,659		142,067		80,324		2,227,050
50.01% to 60.00%	1,812,255		77,716		85,615		1,975,586
60.01% to 70.00%	974,306		43,893		19,739		1,037,938
70.01% to 80.00%	209,385		18,895		19,019		247,299
80.01% and greater	13,486		4,710		15,582		33,778
Total	$	7,549,505	$	378,660	$	321,184	$	8,249,349

(1)The current loan-to-value ratio is based on original appraised value (or most recently obtained appraisal, if available) and current outstanding loan amount adjusted to reflect loan amortization.

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The following table presents Farmer Mac's cumulative net credit losses relative to the cumulative original balance for all Farm & Ranch loans purchased and loans underlying LTSPCs and off-balance sheet Farm & Ranch Guaranteed Securities as of September 30, 2020 by year of origination, geographic region, and commodity/collateral type.  The purpose of this information is to present information about realized losses relative to original Farm & Ranch purchases, guarantees, and commitments.

Table 28

Farm & Ranch Credit Losses Relative to Cumulative
Original Loans, Guarantees, and LTSPCs as of September 30, 2020
	Cumulative Original Loans, Guarantees and LTSPCs		Cumulative Net Credit Losses/(Recoveries)		Cumulative Loss Rate
	(dollars in thousands)
By year of origination:
2010 and prior	$	15,321,174	$	30,103	0.20	%
2011	780,955		3,661		0.47	%
2012	1,159,460		—		—	%
2013	1,451,375		—		—	%
2014	1,030,669		—		—	%
2015	1,189,515		(516)		(0.04)	%
2016	1,487,986		—		—	%
2017	1,562,656		—		—	%
2018	1,282,915		—		—	%
2019	1,468,215		—		—	%
2020	1,800,179				—	%
Total	$	28,535,099	$	33,248	0.12	%
By geographic region(1):
Northwest	$	3,706,610	$	11,191	0.30	%
Southwest	10,076,495		8,520		0.08	%
Mid-North	7,177,705		12,855		0.18	%
Mid-South	3,509,487		(613)		(0.02)	%
Northeast	1,589,015		323		0.02	%
Southeast	2,475,787		972		0.04	%
Total	$	28,535,099	$	33,248	0.12	%
By commodity/collateral type:
Crops	$	13,207,554	$	2,887	0.02	%
Permanent plantings	6,329,212		9,762		0.15	%
Livestock	6,414,242		3,836		0.06	%
Part-time farm	1,637,536		1,090		0.07	%
Ag. Storage and Processing	780,390		15,673		2.01	%
Other	166,165		—		—	%
Total	$	28,535,099	$	33,248	0.12	%

(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).

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Analysis of portfolio performance indicates that commodity type is the primary determinant of Farmer Mac's exposure to loss on a given loan. The following tables present concentrations of Farm & Ranch loans held and loans underlying LTSPCs and off-balance sheet Farm & Ranch Guaranteed Securities by commodity type within geographic region and cumulative credit losses by origination year and commodity type:

Table 29

	As of September 30, 2020
	Farm & Ranch Concentrations by Commodity Type within Geographic Region
	Crops			Permanent Plantings			Livestock			Part-time Farm			Ag. Storage and Processing			Other			Total
	(dollars in thousands)
By geographic region(1):
Northwest	$	473,738		$	178,777		$	279,427		$	78,696		$	5,039		$	59		$	1,015,736
	5.7		%	2.2		%	3.3		%	1.0		%	0.1		%	—		%	12.3		%
Southwest	676,122			1,447,146			511,801			94,470			57,156			15,666			2,802,361
	8.2		%	17.6		%	6.2		%	1.1		%	0.7		%	0.2		%	34.0		%
Mid-North	1,992,828			11,235			221,150			117,430			18,064			2,003			2,362,710
	24.2		%	0.1		%	2.7		%	1.4		%	0.2		%	—		%	28.6		%
Mid-South	661,234			43,170			301,146			55,875			6,977			20			1,068,422
	8.0		%	0.5		%	3.7		%	0.7		%	0.1		%	—		%	13.0		%
Northeast	160,221			59,717			67,891			66,463			3,518			—			357,810
	2.0		%	0.7		%	0.8		%	0.8		%	—		%	—		%	4.3		%
Southeast	236,109			182,696			131,722			72,844			18,615			324			642,310
	2.9		%	2.2		%	1.6		%	0.9		%	0.2		%	—		%	7.8		%
Total	$	4,200,252		$	1,922,741		$	1,513,137		$	485,778		$	109,369		$	18,072		$	8,249,349
	51.0		%	23.3		%	18.3		%	5.9		%	1.3		%	0.2		%	100.0		%

(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).

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Table 30

	As of September 30, 2020
	Farm & Ranch Cumulative Credit Losses by Origination Year and Commodity Type
	Crops		Permanent Plantings		Livestock		Part-time Farm		Ag. Storage and Processing		Total
	(in thousands)
By year of origination:
2010 and prior	$	3,427	$	9,762	$	3,836	$	1,066	$	12,012	$	30,103
2011	—		—		—		—		3,661		3,661
2012	—		—		—		—		—		—
2013	—		—		—		—		—		—
2014	—		—		—		—		—		—
2015	(540)		—		—		24		—		(516)
2016	—		—		—		—		—		—
2017	—		—		—		—		—		—
2018	—		—		—		—		—		—
2019	—		—		—		—		—		—
2020	—		—		—		—		—		—
Total	$	2,887	$	9,762	$	3,836	$	1,090	$	15,673	$	33,248

Rural Utilities

Farmer Mac's direct credit exposure to Rural Utilities loans held and loans underlying LTSPCs as of September 30, 2020 was $2.7 billion across 45 states. For more information about Farmer Mac's underwriting and collateral valuation standards for Rural Utilities loans, see "Business—Farmer Mac's Lines of Business—Rural Utilities—Underwriting" in Farmer Mac’s Annual Report on Form 10-K for the fiscal year ended December 31, 2019 filed with the SEC on February 25, 2020. As of September 30, 2020, there were no delinquencies in Farmer Mac's portfolio of Rural Utilities loans.

Farmer Mac has indirect credit exposure to Rural Utilities loans that secure AgVantage securities included in the Institutional Credit line of business. As of September 30, 2020, Farmer Mac had not experienced any credit losses on any AgVantage securities. See "Management's Discussion and Analysis of Financial Condition and Results of Operations—Risk Management—Credit Risk – Institutional" for more information about Farmer Mac's credit risk on AgVantage securities.

Farmer Mac has never experienced a credit loss in its Rural Utilities line of business. Upon the adoption of the current expected credit loss accounting standard ("CECL") on January 1, 2020, we are now required to forecast and disclose our expected credit losses for the expected life of our Rural Utilities portfolio assets. To do this, Farmer Mac relies upon industry data purchased from ratings agencies as well as publicly available information as disclosed in the securities filings of other major lenders who serve this industry. Activity affecting the allowance for loan losses and reserve for losses is discussed in "Management's Discussion and Analysis of Financial Condition and Results of Operations—Results of Operations—Provision for and Release of Allowance for Loan Losses and Reserve for Losses."

Farmer Mac evaluates credit risk for these assets by reviewing a variety of borrower credit risk characteristics. These characteristics can include (but is not limited to) financial metrics, internal risk ratings, ratings assigned by ratings agencies, types of customers served, sources of power supply, and the regulatory environment.

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The following table presents Farmer Mac’s portfolio of generation and transmission ("G&T") and distribution cooperative borrowers, as well as renewable energy loans, disaggregated by internally assigned risk ratings.

Table 31

	Rural Utilities portfolio by internally assigned risk rating as of September 30, 2020
	Acceptable		Special Mention		Substandard		Total
	(in thousands)
Distribution Cooperative	$	2,088,027	$	—	$	4,474	$	2,092,501
G&T Cooperative	573,401		—		—		573,401
Renewable Energy	19,407		—		—		19,407
Rural Utilities Total	$	2,680,835	$	—	$	4,474	$	2,685,309

For more information about the credit quality of Farmer Mac's Rural Utilities portfolio and the associated allowance for losses please refer to Notes 5 and 6 of the consolidated financial statements.

Other Considerations Regarding Credit Risk Related to Loans and Guarantees

The credit exposure on USDA Securities, including those underlying Farmer Mac Guaranteed USDA Securities, is guaranteed by the full faith and credit of the United States.  Therefore, Farmer Mac believes that we have little or no credit risk exposure in the USDA Guarantees line of business because of the USDA guarantee.  As of September 30, 2020, Farmer Mac had not experienced any credit losses on any securities under the USDA Guarantees line of business and does not expect to incur any such losses in the future. Because we do not expect credit losses on this portfolio, Farmer Mac does not provide an allowance for losses on its portfolio of USDA Guaranteed Securities. As of September 30, 2020, Farmer Mac had executed COVID-19 payment deferments on loans with unpaid principal balances of $83.8 million underlying USDA Securities.

Farmer Mac requires most approved lenders to make representations and warranties about the conformity of eligible agricultural mortgage and Rural Utilities loans to Farmer Mac's standards, the accuracy of loan data provided to Farmer Mac, and other requirements related to the loans. Sellers who make these representations and warranties are responsible to Farmer Mac for breaches of those representations and warranties. Farmer Mac has the ability to require a seller to cure, replace, or repurchase a loan sold or transferred to Farmer Mac if any breach of a representation or warranty is discovered that was material to Farmer Mac's decision to purchase the loan or that directly or indirectly causes a default or potential loss on a loan sold or transferred by the seller to Farmer Mac. During the previous three years ended September 30, 2020, there have been no breaches of representations and warranties by sellers that resulted in Farmer Mac requiring a seller to cure, replace, or repurchase a loan. In addition to relying on the representations and warranties of sellers, Farmer Mac also underwrites the agricultural real estate mortgage loans (other than rural housing and part-time farm mortgage loans) and Rural Utilities loans on which it has direct credit exposure. For rural housing and part-time farm mortgage loans, Farmer Mac relies on representations and warranties from the seller that those loans conform to Farmer Mac's specified underwriting criteria without exception. For more information about Farmer Mac's loan eligibility requirements and underwriting standards, see "Business—Farmer Mac's Lines of Business—Farm & Ranch—Loan Eligibility," "Business—Farmer Mac's Lines of Business—Farm & Ranch—Underwriting and Collateral Valuation (Appraisal) Standards," "Business—Farmer Mac's Lines of Business—Rural Utilities—Loan Eligibility," and "Business—Farmer Mac's Lines of Business—Rural Utilities—Underwriting" in Farmer Mac’s Annual Report on Form 10-K for the fiscal year ended December 31, 2019, as filed with the SEC on February 25, 2020.

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Under contracts with Farmer Mac and in consideration for servicing fees, Farmer Mac-approved servicers service loans in accordance with Farmer Mac's requirements. Servicers are responsible to Farmer Mac for serious errors in the servicing of those loans. If a servicer materially breaches the terms of its servicing agreement with Farmer Mac, such as failing to forward payments received or releasing collateral without Farmer Mac's consent, or experiences insolvency or bankruptcy, the servicer is responsible for any corresponding damages to Farmer Mac and, in most cases, Farmer Mac has the right to terminate the servicing relationship for a particular loan or the entire portfolio serviced by the servicer. Farmer Mac also can proceed against the servicer in arbitration or exercise any remedies available to it under law. During the previous three years ended September 30, 2020, Farmer Mac had not exercised any remedies or taken any formal action against any servicers. For more information about Farmer Mac's servicing requirements, see "Business—Farmer Mac's Lines of Business—Farm & Ranch—Servicing" and "Business—Farmer Mac's Lines of Business—Rural Utilities—Servicing" in Farmer Mac’s Annual Report on Form 10-K for the fiscal year ended December 31, 2019 filed with the SEC on February 25, 2020.

Credit Risk – Institutional.  Farmer Mac is exposed to credit risk arising from its business relationships with other institutions, which include:

•issuers of AgVantage securities;

•approved lenders and servicers; and

•interest rate swap counterparties.

Farmer Mac approves AgVantage counterparties and manages institutional credit risk related to those AgVantage counterparties by requiring them to meet Farmer Mac's standards for creditworthiness for the particular counterparty type and transaction.  The required collateralization level is established when the AgVantage facility is entered into with the counterparty and does not change during the life of the AgVantage securities issued under the facility without Farmer Mac's consent. In AgVantage transactions, the corporate obligor is typically required to remove from the pool of pledged collateral any loan that becomes more than 30 days delinquent in the payment of principal or interest and to substitute an eligible loan that is current in payment to maintain the minimum required collateralization level.  Since the onset of the COVID-19 pandemic, Farmer Mac has approved and expects to continue to approve payment deferments on loans collateralizing AgVantage securities, allowing the AgVantage counterparty to keep these loans in its collateral pool without replacing them. The criteria currently in place for approving payment deferments for these loans is similar to the criteria Farmer Mac has established for loans in its Farm & Ranch portfolio that are affected by the COVID-19 pandemic.

In the event of a default on an AgVantage security, Farmer Mac would have recourse to the pledged collateral and have rights to the ongoing borrower payments of principal and interest. For Farm Equity AgVantage counterparties and smaller financial funds or entities, Farmer Mac also requires that the counterparty generally (1) maintain a higher collateralization level through lower loan-to-value ratio thresholds than required for traditional AgVantage securities and (2) comply with specified financial covenants for the life of the related AgVantage security to avoid default. For a more detailed description of AgVantage securities, see "Business—Farmer Mac's Lines of Business—Institutional Credit" in Farmer Mac's Annual Report on Form 10-K for the fiscal year ended December 31, 2019 filed with the SEC on February 25, 2020.

The unpaid principal balance of outstanding on-balance sheet AgVantage securities secured by loans eligible for the Farm & Ranch line of business totaled $5.4 billion as of September 30, 2020 and $5.5 billion as of December 31, 2019. The unpaid principal balance of on-balance sheet AgVantage securities

106

secured by loans eligible for the Rural Utilities line of business totaled $2.9 billion as of September 30, 2020 and $2.9 billion as of December 31, 2019. The unpaid principal balance of outstanding off-balance sheet AgVantage securities totaled $6.1 million as of September 30, 2020 and $7.6 million as of December 31, 2019. A $0.3 billion off-balance sheet AgVantage revolving line of credit facility was terminated during fourth quarter 2019.

The following table provides information about the issuers of AgVantage securities, as well as the required collateralization levels for those transactions as of September 30, 2020 and December 31, 2019:

Table 32

	As of September 30, 2020				As of December 31, 2019
Counterparty	Balance		Credit Rating	Required Collateralization	Balance		Credit Rating	Required Collateralization
	(dollars in thousands)
AgVantage:
CFC	$	2,919,816	A	100%	$	2,949,500	A	100%
MetLife	2,375,000		AA-	103%	2,550,000		AA-	103%
Rabo AgriFinance	2,250,000		None	110%	2,225,000		None	110%
Other(1)	528,929		None	106% to 125%	436,041		None	106% to 125%
Farm Equity AgVantage(2)	245,757		None	110%	279,705		None	110%
Total outstanding	$	8,319,502			$	8,440,246

(1)Consists of AgVantage securities issued by 6 and 5 different issuers as of September 30, 2020 and December 31, 2019, respectively.

(2)Consists of AgVantage securities issued by 4 and 5 different issuers as of September 30, 2020 and December 31, 2019, respectively.

Farmer Mac manages institutional credit risk related to lenders and servicers by requiring those institutions to meet Farmer Mac's standards for creditworthiness.  Farmer Mac monitors the financial condition of those institutions by evaluating financial statements and bank credit rating agency reports.  For more information about Farmer Mac's lender eligibility requirements, see "Business—Farmer Mac's Lines of Business—Farm & Ranch—Approved Lenders" and "Business—Farmer Mac's Lines of Business—Rural Utilities—Approved Lenders" in Farmer Mac's Annual Report on Form 10-K for the fiscal year ended December 31, 2019, as filed with the SEC on February 25, 2020.

Farmer Mac manages institutional credit risk related to its interest rate swap counterparties through collateralization provisions contained in each of its swap agreements that varies based on the market value of its swap portfolio with each counterparty. Farmer Mac and its interest rate swap counterparties are required to fully collateralize their derivatives positions without any minimum threshold for cleared swap transactions, as well as for non-cleared swap transactions entered into after March 1, 2017. Farmer Mac transacts interest rate swaps with multiple counterparties to reduce counterparty credit exposure concentration. Farmer Mac's usage of cleared derivatives has increased over time as has its exposure to clearinghouses. The usage of cleared swap transactions reduces Farmer Mac's exposure to individual counterparties with the central clearinghouse acting to settle the change in value of contracts on a daily basis. Credit risk related to interest rate swap contracts is discussed in "Management's Discussion and Analysis of Financial Condition and Results of Operations—Risk Management—Interest Rate Risk" and Note 4 to the consolidated financial statements.

Credit Risk – Other Investments. As of September 30, 2020, Farmer Mac had $0.9 billion of cash and cash equivalents and $3.6 billion of investment securities. The management of the credit risk inherent in these investments is governed by Farmer Mac's internal policies as well as the liquidity and investment regulations for Farmer Mac, which were issued by FCA and which establish criteria for investments that

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are eligible for Farmer Mac's investment portfolio, including limitations on asset class, dollar amount, issuer concentration, and credit quality. In addition to establishing a portfolio of highly liquid investments as an available source of cash, the goals of Farmer Mac's investment policies are designed to minimize Farmer Mac's exposure to financial market volatility, preserve capital, and support Farmer Mac's access to the debt markets.

Farmer Mac's liquidity and investment regulations and internal policies require that investments held in Farmer Mac's investment portfolio meet the following creditworthiness standards: (1) at a minimum, at least one obligor of the investment must have a very strong capacity to meet financial commitments for the life of the investment, even under severely adverse or stressful conditions, and generally present a very low risk of default; (2) if the obligor whose capacity to meet financial commitments is being relied upon to meet the standard set forth in subparagraph (1) is located outside of the United States, the investment must also be fully guaranteed by a U.S. government agency; and (3) the investment must exhibit low credit risk and other risk characteristics consistent with the purpose or purposes for which it is held.

Farmer Mac's liquidity and investment regulations and internal policies also establish concentration limits, which are intended to limit exposure to any single entity, issuer, or obligor. Farmer Mac's liquidity and investment regulations limit Farmer Mac's total credit exposure to any single entity, issuer, or obligor of securities to 10% of Farmer Mac's regulatory capital ($100.4 million as of September 30, 2020). However, Farmer Mac's current policy limits this total credit exposure to 5% of its regulatory capital ($50.2 million as of September 30, 2020). These exposure limits do not apply to obligations of U.S. government agencies or GSEs, although Farmer Mac's current policy restricts investing more than 100% of regulatory capital in the senior non-convertible debt securities of any one GSE.

Although the Liquidity and Investments Regulations do not establish limits on the maximum amount, expressed as a percentage of Farmer Mac's investment portfolio, that can be invested in each eligible asset class, Farmer Mac's internal policies set forth asset class limits as part of Farmer Mac's overall risk management framework.

Interest Rate Risk.  Farmer Mac is subject to interest rate risk on all financial assets retained on its balance sheet because of timing differences in the cash flows of the assets and debt together with financial derivatives.  This risk is primarily related to loans, loan participation interests, Farmer Mac Guaranteed Securities, and USDA Securities due to the contract right of borrowers to prepay their loans before the scheduled maturities.  Cash flow mismatches due to changing interest rates can reduce the earnings of Farmer Mac if assets prepay sooner than expected and the resulting cash flows must be reinvested in lower-yielding investments when Farmer Mac's funding costs cannot be correspondingly reduced. Alternatively, Farmer Mac could see a drop in income if assets repay more slowly than expected in a rising interest rate environment and the associated debt must be replaced by higher-cost debt.

Interest Rate Risk Management

The goal of interest rate risk management at Farmer Mac is to manage the balance sheet in a manner that generates stable earnings and value across a variety of interest rate environments. Recognizing that interest rate sensitivity may change with the passage of time and as interest rates change, Farmer Mac regularly assesses this exposure and, if necessary, adjusts its portfolio of assets, debt, and financial derivatives.

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Farmer Mac's objective is to maintain its exposure to interest rate risk within appropriate limits, as approved by Farmer Mac's board of directors. Farmer Mac's management-level Asset and Liability Committee ("ALCO") provides oversight and approves strategies to maintain interest rate risk within the board-established limits.

Farmer Mac's primary strategy for managing interest rate risk is to fund asset purchases with debt that together with financial derivatives have similar duration and convexity characteristics so that they will perform in a similar fashion as interest rates change. As part of the debt issuance strategy, Farmer Mac seeks to issue a blend of liabilities across a variety of maturities to approximately align the liability cashflows with the forecasted asset cashflows.

Farmer Mac issues discount notes and both callable and non-callable medium-term notes across a spectrum of maturities to execute its liability issuance strategy. Callable debt is issued to mitigate prepayment risk associated with assets held on balance sheet. The interest rate sensitivities of the debt together with financial derivatives tend to increase or decrease as interest rates change in a manner similar to changes in the interest rate sensitivities of the assets. Farmer Mac enters into financial derivatives, primarily interest rate swaps, as another tool to better match the durations of Farmer Mac's assets and liabilities, thereby reducing overall sensitivity to changing interest rates.

Taking into consideration the prepayment provisions and the default probabilities associated with its portfolio of retained assets, Farmer Mac incorporates prepayment behavioral models when projecting and valuing cash flows associated with these assets.  Because borrowers' behaviors in various interest rate environments may change over time, Farmer Mac periodically evaluates the effectiveness of these models compared to actual prepayment experience and adjusts and refines the models as necessary to improve the precision of future prepayment forecasts.

Changes in interest rates may affect loan prepayment rates which may, in turn, impact durations and values of the loans. Declining interest rates generally increase prepayment rates, which shortens the duration of these assets, while rising interest rates tend to slow loan prepayments, thereby extending the duration of the loans.

Farmer Mac is subject to interest rate risk on loans that Farmer Mac has committed to acquire but has not yet purchased (other than delinquent loans purchased through LTSPCs or loans designated for securitization under a forward purchase agreement).  When Farmer Mac commits to purchase these loans, it is exposed to interest rate risk between the time it commits to purchase the loans and the time it issues debt to fund the purchase of those loans. Farmer Mac manages the interest rate risk related to these loans by using futures contracts involving U.S. Treasury securities and other financial derivatives.  Farmer Mac enters into U.S. Treasury futures contracts as a hedge against the level of interest rates.

Farmer Mac's $0.9 billion of cash and cash equivalents mature within three months and are generally funded with debt having similar maturities. As of September 30, 2020, $3.5 billion of the $3.6 billion of investment securities (97%) were floating rate securities with rates that adjust within one year or fixed rate securities with original maturities between three months and one year. The floating rate securities are funded with effectively floating rate debt that closely matches the rate adjustment dates of the associated investments. The fixed rate investment securities are generally funded in a manner consistent with Farmer Mac's overall funding strategy that approximates a duration and convexity match.

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Interest Rate Risk Metrics

Farmer Mac regularly stress tests its portfolio for interest rate risk and examines a variety of metrics to quantify and manage its interest rate risk. These metrics include sensitivity to interest rate movements of market value of equity ("MVE") and projected net effective spread ("NES") as well as duration gap analysis. MVE represents management's estimate of the present value of all future cash flows from on- and off-balance sheet assets, liabilities, and financial derivatives, discounted at current interest rates and appropriate spreads. However, MVE is not indicative of the market value of Farmer Mac as a going concern because these market values are theoretical and do not reflect future business activities. MVE sensitivity analysis is used to measure the degree to which the market values of Farmer Mac's assets and liabilities change for a given change in interest rates. Because this analysis evaluates the effect of interest rate movements on the value of all future cash flows, this measure provides an evaluation of Farmer Mac's long-term interest rate risk.

Farmer Mac's NES simulation represents the difference between projected income over the next twelve months from interest-earning assets and interest expense produced by the related funding, including associated derivatives. Farmer Mac's NES may be impacted by changes in market interest rates resulting from timing differences between maturities and re-pricing characteristics of assets and liabilities. The direction and magnitude of any such effect depends on the direction and magnitude of the change in interest rates as well as the composition of Farmer Mac's portfolio. The NES forecast represents an estimate of the net effective spread income that Farmer Mac's current portfolio is expected to produce over a twelve-month horizon. As a result, NES sensitivity statistics provide a short-term view of Farmer Mac's sensitivity to interest rates.

Duration is a measure of a financial instrument's fair value sensitivity to small changes in interest rates. Duration gap is the net estimated durations of Farmer Mac's assets, debt, and financial derivatives. Because duration is a measure of fair value sensitivity, duration gap summarizes the extent to which estimated fair value sensitivities for assets and liabilities are matched. Duration gap provides a relatively concise measure of the interest rate risk inherent in Farmer Mac's outstanding portfolio.

A positive duration gap denotes that the duration of Farmer Mac's assets is greater than the duration of its debt and derivatives. A positive duration gap indicates that the changes to the fair value of Farmer Mac's assets is more sensitive to small interest rate movements than are the changes to fair value of its debt and derivatives. Conversely, a negative duration gap indicates that changes to fair value of Farmer Mac's assets are less sensitive to small interest rate movements than are the changes to fair value of its debt and derivatives. A duration gap of zero indicates that with small changes in interest rate movements the fair value change of Farmer Mac's assets is effectively offset the fair value change of its debt and derivatives.

Each of the metrics is produced using asset/liability models and is derived based on management's best estimates of factors such as projected interest rates, interest rate volatility, and asset prepayment speeds. Accordingly, these metrics should be understood as estimates rather than as precise measurements. Actual results may differ to the extent there are material changes to Farmer Mac's portfolio or changes in strategies undertaken to mitigate unfavorable sensitivities to interest rate changes.

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The following schedule summarizes the results of Farmer Mac's MVE and NES sensitivity analysis as of September 30, 2020 and December 31, 2019 to an immediate and instantaneous uniform or "parallel" shift in the yield curve:

Table 33

	Percentage Change in MVE from Base Case
Interest Rate Scenario(1)	As of September 30, 2020		As of December 31, 2019
+100 basis points	6.1	%	2.7	%
-100 basis points	(0.5)	%	(8.4)	%

	Percentage Change in NES from Base Case
Interest Rate Scenario(1)	As of September 30, 2020		As of December 31, 2019
+100 basis points	3.1	%	0.8	%
-100 basis points	(0.2)	%	0.1	%

(1)The down 100 basis points shock scenario was replaced with a proportional shock relative to 50% of the 3-month Treasury bill rate, with the approval of the Financial Risk Committee of the Board of Directors.

As of September 30, 2020, Farmer Mac's effective duration gap was negative 4.4 months, compared to negative 2.5 months as of December 31, 2019. Interest rates decreased significantly during the first nine months of 2020. This rate movement contributed to reducing the duration of Farmer Mac's assets relative to its liabilities, thereby widening Farmer Mac's duration gap. Furthermore, as of September 30, 2020, Farmer Mac implemented a replacement behavioral prepayment model that also contributed to a widening duration gap.

Financial Derivatives Transactions

The economic effects of financial derivatives are included in Farmer Mac's MVE, NES, and duration gap analyses.  Farmer Mac enters into the following financial derivative transactions principally to protect against risk from the effects of market price or interest rate movements on the value of assets, future cash flows, and debt issuance, not for trading or speculative purposes:

•"pay-fixed" interest rate swaps, in which Farmer Mac pays fixed rates of interest to, and receives floating rates of interest from, counterparties;

•"receive-fixed" interest rate swaps, in which Farmer Mac receives fixed rates of interest from, and pays floating rates of interest to, counterparties; and

•"basis swaps," in which Farmer Mac pays variable rates of interest based on one index to, and receives variable rates of interest based on another index from, counterparties.

As of September 30, 2020, Farmer Mac had $15.1 billion combined notional amount of interest rate swaps, with terms ranging from less than one year to thirty years, of which $6.2 billion were pay-fixed interest rate swaps, $5.6 billion were receive-fixed interest rate swaps, and $3.3 billion were basis swaps.

Farmer Mac enters into interest rate swap contracts to more closely match the cash flow and duration characteristics of its assets with those of its liabilities. Interest rate swaps paired with the issuance of short-term debt effectively can create fixed rate funding that approximately matches duration with the corresponding assets being funded.  Farmer Mac evaluates the overall cost of using the swap market in conjunction with debt issuance as a funding alternative to duration-matched debt and enters into interest rate swaps to manage interest rate risks across the balance sheet.

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Certain financial derivatives are designated as fair value hedges of fixed rate assets classified as available for sale or liabilities to protect against fair value changes in the assets or liabilities related to a benchmark interest rate (e.g., LIBOR and SOFR). Also, certain financial derivatives are designated as cash flow hedges to mitigate the volatility of future interest rate payments on floating rate debt.

As discussed in Note 4 to the consolidated financial statements, all financial derivatives are recorded on the balance sheet at fair value as derivative assets or as derivative liabilities. Changes in the fair values of financial derivatives are reported in "(Losses)/gains on financial derivatives" in the consolidated statements of operations. For financial derivatives designated in fair value hedge accounting relationships, changes in the fair values of the hedged items related to the risk being hedged are reported in "Net interest income" in the consolidated statements of operations. Interest accruals on derivatives designated in fair value hedge accounting relationships are also recorded in "Net interest income" in the consolidated statements of operations. For financial derivatives designated in cash flow hedge accounting relationships, the unrealized gain or loss on the derivative is recorded in other comprehensive income. Because the hedging instrument is an interest rate swap and the hedged forecasted transactions are future interest payments on variable rate debt, amounts recorded in accumulated other comprehensive income are reclassified to "Total interest expense" in conjunction with the recognition of interest expense on the debt. All of Farmer Mac's financial derivatives transactions are conducted under standard collateralized agreements that limit Farmer Mac's potential credit exposure to any counterparty. As of September 30, 2020 and December 31, 2019, Farmer Mac had no uncollateralized net exposures.

Re-funding and repricing risk

In addition to being exposed to the risk of asset and liability cash flow mismatches, Farmer Mac is exposed to the risk related to changes in its cost of funds relative to floating rate market indexes (such as LIBOR and SOFR) on many of the floating rate assets it holds. This exposure is referred to as "re-funding and repricing risk." Re-funding and repricing risk arises from potential changes in funding costs when Farmer Mac funds floating rate, or synthetic floating rate, assets with floating rate liabilities with shorter maturities. Changes in Farmer Mac's funding costs relative to the benchmark rate to which the assets are indexed can cause changes to net interest income from funding those assets.

Farmer Mac is subject to re-funding and repricing risk on any floating rate assets that are not funded to contractual maturity. In addition, many of Farmer Mac's floating rate assets may prepay before the contractual maturity date. Farmer Mac is also subject to re-funding and repricing risk on a portion of its fixed rate assets as a result of its use of pay-fixed receive-floating interest rate swaps that effectively convert the required funding needed from fixed rate to floating rate. These fixed rate assets are then effectively synthetically floating rate assets that require floating rate funding.

Farmer Mac can meet floating rate funding needs in several ways, including:

•issuing short-term discount notes with maturities that match the reset period of the assets;

•issuing floating rate medium-term notes with maturities and reset frequencies that match the assets being funded;

•issuing non-maturity matched, floating rate medium-term notes with reset frequencies that match the assets being funded; or

•issuing non-maturity matched, discount notes or medium-term notes swapped to match the interest rate reset dates of the assets as an alternative source of effectively floating rate funding.

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To meet floating rate funding needs, Farmer Mac frequently issues shorter-term floating-rate medium-term notes or fixed rate medium-term notes paired with an interest rate swap because these options generally provide a lower cost of funding while generating an effective interest rate match. As funding for these floating rate assets matures, Farmer Mac seeks to refinance the debt associated with these assets in a similar fashion to achieve an appropriate interest rate match in the context of Farmer Mac's overall liability issuance and liquidity management strategies.

However, if the funding cost of Farmer Mac’s discount notes or medium-term notes were to deteriorate relative to LIBOR (or a different market index to which the assets are being funded) during the time between when these floating rate assets were first funded and when Farmer Mac refinanced the associated debt, Farmer Mac would be exposed to a commensurate reduction in its net effective spread on the associated assets. Conversely, if the funding cost on Farmer Mac’s discount notes or medium-term notes were to improve relative to LIBOR (or a different market index) during that time, Farmer Mac would benefit from a commensurate increase in its net effective spread on those assets.

Farmer Mac's liability issuance strategy targets balancing liquidity risk and re-funding and repricing risk while maintaining an appropriate liability management profile that is consistent with Farmer Mac's risk tolerance. ALCO regularly reviews Farmer Mac's liability issuance strategy to appropriately manage re-funding and repricing risk.

As of September 30, 2020, Farmer Mac held $7.0 billion of floating rate assets in its lines of business and its investment portfolio that reset based on floating rate market indexes, primarily one-month and three-month LIBOR. As of the same date, Farmer Mac also had $6.2 billion of interest rate swaps outstanding where Farmer Mac pays a fixed rate of interest and receives a floating rate of interest.

Throughout the first nine months of 2020, Farmer Mac's funding relative to LIBOR remained stable with spreads comparable to historical averages. Farmer Mac regularly adjusts its funding strategies to mitigate the effects of spread variability from time to time and seeks to maintain an effective funding cost in the context of its overall liability management and liquidity management strategies.

Discontinuation of LIBOR

As described in "Risk Factors—Market Risk" in Farmer Mac's Annual Report on Form 10-K for the fiscal year ended December 31, 2019 filed with the SEC on February 25, 2020, Farmer Mac faces risks associated with the reform, replacement, or discontinuation of the LIBOR benchmark interest rate and the transition to an alternative benchmark interest rate. We are currently evaluating the potential effect on our business of the replacement of the LIBOR benchmark interest rate, including the possibility of replacement benchmark interest rates.

As of September 30, 2020, Farmer Mac held $5.7 billion of floating rate assets in its lines of business and its investment portfolio, had issued $5.2 billion of floating rate debt, and had entered into $14.9 billion notional amount of interest rate swaps, each of which reset based on LIBOR. In addition, our Non-Cumulative Series C Preferred Stock currently pays a fixed rate of interest until July 17, 2024. It becomes redeemable at our option on July 18, 2024 and thereafter pays interest at a floating rate equal to three-month LIBOR plus 3.260%.

The market transition away from LIBOR and towards an alternative benchmark interest rate that may be developed is expected to be complicated and may require the development of term and credit adjustments

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to accommodate for differences between the benchmark interest rates. The transition may also result in different financial performance for previously booked transactions, require different hedging strategies, or require renegotiation of previously booked transactions. As of September 30, 2020, we had $1.1 billion outstanding in medium-term notes based on the Secured Overnight Financing Rate (SOFR), a potential alternative benchmark interest rate.

Liquidity and Capital Resources

Farmer Mac's primary sources of funds to meet its liquidity and funding needs are the proceeds of its debt issuances, guarantee and commitment fees, net effective spread, loan repayments, and maturities of AgVantage securities. Farmer Mac regularly accesses the capital markets for funding, and Farmer Mac has maintained access to the capital markets at favorable rates through third quarter 2020. Farmer Mac funds its purchases of eligible loan assets, USDA Securities, Farmer Mac Guaranteed Securities, and investment assets and finances its operations primarily by issuing debt obligations of various maturities in the public capital markets. As of September 30, 2020, Farmer Mac had outstanding discount notes of $2.4 billion, medium-term notes that mature within one year of $8.6 billion, and medium-term notes that mature after one year of $10.7 billion.

Assuming continued access to the capital markets, Farmer Mac believes it has sufficient liquidity and capital resources to support its operations for the next 12 months and for the foreseeable future. Farmer Mac also has a contingency funding plan to manage unanticipated disruptions in its access to the capital markets. That plan involves borrowing through repurchase agreement arrangements and the sale of liquid assets. Farmer Mac must maintain a minimum of 90 days of liquidity under its liquidity and investment regulations. Under the methodology for calculating available days of liquidity prescribed by those regulations, Farmer Mac maintained an average of 202 days of liquidity during third quarter 2020 and had 182 days of liquidity as of September 30, 2020. ALCO regularly reviews Farmer Mac's liquidity position and ensures the required minimums are maintained.

Farmer Mac maintains cash, cash equivalents (including U.S. Treasury securities and other short-term money market instruments), and other investment securities that can be drawn upon for liquidity needs.  Farmer Mac's current policies authorize liquidity investments in:

•obligations of or fully guaranteed by the United States or a U.S. government agency;

•obligations of or fully guaranteed by GSEs;

•municipal securities;

•international and multilateral development bank obligations;

•money market instruments;

•diversified investment funds;

•asset-backed securities;

•corporate debt securities; and

•mortgage-backed securities.

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The following table presents these assets as of September 30, 2020 and December 31, 2019:

Table 34

	As of September 30, 2020		As of December 31, 2019
	(in thousands)
Cash and cash equivalents	$	910,592	$	604,381
Investment securities:
Guaranteed by U.S. Government and its agencies	1,696,538		1,842,640
Guaranteed by GSEs	1,861,611		1,143,323
Asset-backed securities	19,109		18,912
Total	$	4,487,850	$	3,609,256

The increase in the investment portfolio since December 31, 2019 was to provide a greater level of liquidity in response to the COVID-19 pandemic, to prepare for the possibility of future volatility in the debt capital markets, and to support program asset growth as the overall funding needs for the balance sheet increased.

Capital Requirements. Farmer Mac is subject to the following statutory capital requirements – minimum, critical, and risk-based. Farmer Mac must comply with the higher of the minimum capital requirement and the risk-based capital requirement. As of September 30, 2020, Farmer Mac was in compliance with its statutory capital requirements and was classified as within "level I" (the highest compliance level).

In accordance with FCA's rule on capital planning, Farmer Mac's board of directors has adopted a policy for maintaining a sufficient level of "Tier 1" capital (consisting of retained earnings, paid-in capital, common stock, and qualifying preferred stock). That policy restricts Tier 1-eligible dividends and any discretionary bonus payments if Tier 1 capital falls below specified thresholds. As of September 30, 2020 and December 31, 2019, Farmer Mac's Tier 1 capital ratio was 14.3% and 12.9%, respectively. The increase in our Tier 1 capital ratio was due to the fact that capital growth, which reflects the issuance of the Series E and Series F Preferred Stock, partially offset by the redemption of the Series A Preferred Stock, outpaced the growth in risk-weighted assets during the first nine months of 2020. As of September 30, 2020, Farmer Mac was in compliance with its capital adequacy policy. Farmer Mac does not expect its compliance on an ongoing basis with FCA's rule on capital planning, including Farmer Mac's policy on Tier 1 capital, to materially affect Farmer Mac's operations or financial condition.

For more information about the capital requirements applicable to Farmer Mac, its capital adequacy policy, and FCA's rule on capital planning, see "Business—Government Regulation of Farmer Mac—Capital Standards" in Farmer Mac's Annual Report on Form 10-K for the fiscal year ended December 31, 2019 filed with the SEC on February 25, 2020. See Note 8 to the consolidated financial statements for more information about Farmer Mac's capital position.

Regulatory Matters

In response to the economic effects of the COVID-19 pandemic, FCA has issued regulatory guidance to encourage Farmer Mac to work with its lending and servicing partners in approving servicing actions for borrowers impacted by COVID-19, including working with other Farm Credit System institutions on approvals for loans to which statutory borrower rights are attached (primarily in LTSPCs). FCA also provided guidance about under what circumstances loans with approved servicing actions due exclusively

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to the economic effects of the COVID-19 pandemic should not be classified as nonaccrual or troubled debt restructurings.

Also in response to the COVID-19 pandemic and the related economic effects, Congress passed a series of stimulus measures, including the Coronavirus Aid, Relief, and Economic Security Act (the "CARES Act"), which contained a $9.5 billion emergency fund for the USDA aimed toward providing help to livestock, dairy, and produce providers who sell locally. It also included a $14 billion replenishment of the CCC, a line of credit at the U.S. Treasury Department that USDA can use to help crop and livestock producers. On April 17, 2020, USDA announced that it would provide $19 billion of assistance through the Coronavirus Food Assistance Program ("CFAP"). CFAP used the funding and authorities provided in the CARES Act, the Families First Coronavirus Response Act, and other USDA existing authorities to provide $16 billion in direct support to farmers and ranchers based on actual losses from disruptions to prices and market supply chains and for projected impacts to marketing costs resulting from lost demand and short-term oversupply for the 2020 marketing year caused by the coronavirus. As part of CFAP, USDA also announced that it would purchase $3 billion in fresh produce, dairy, and meat. These purchases are aimed at propping up commodity prices while providing commodities to food banks, community and faith based organizations, and other non-profits serving Americans in need. As of October 25, 2020, the USDA had distributed $10.3 billion in CFAP payments. Additionally, on September 17, 2020, the USDA announced the second round of CFAP funding through the authorities of the CCC for up to $14 billion in direct support for eligible commodities ("CFAP 2"). As of October 25, 2020, the USDA had distributed more than $7.6 billion in payments through CFAP 2. Through the end of October, more than $26 billion in economic support has been delivered to farm businesses under the CARES Act through a combination of direct payments and loans. In addition to legislation and stimulus in response to COVID-19, Farmer Mac continues to monitor the establishment and evolution of legislation and regulations that could affect farmers, ranchers, rural lenders, and rural America in general.

Other Matters

The expected effects of recently issued accounting pronouncements on the consolidated financial statements are presented in Note 1(d) to the consolidated financial statements.

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Supplemental Information

The following tables present quarterly and annual information about new business volume, repayments, and outstanding business volume:

Table 35

New Business Volume
	Farm & Ranch				USDA Guarantees		Rural Utilities				Institutional Credit
	Loans		LTSPCs		USDA Securities		Loans		LTSPCs		AgVantage		Total
	(in thousands)
For the quarter ended:
September 30, 2020	$	740,823	$	94,495	$	225,494	$	62,300	$	—	$	211,908	$	1,335,020
June 30, 2020	609,284		85,390		224,016		339,366		19,500		430,024		1,707,580
March 31, 2020	401,853		73,674		147,906		152,668		—		560,395		1,336,496
December 31, 2019	602,750		65,614		143,565		102,900		—		371,075		1,285,904
September 30, 2019	309,805		125,022		113,664		117,279		—		402,611		1,068,381
June 30, 2019	248,152		57,321		118,335		105,000		—		659,447		1,188,255
March 31, 2019	203,156		91,215		57,223		546,198		—		825,417		1,723,209
December 31, 2018	285,008		80,840		90,297		3,000		—		585,814		1,044,959
September 30, 2018	192,628		64,100		116,339		—		—		1,085,953		1,459,020
For the year ended:
December 31, 2019	$	1,363,863	$	339,172	$	432,787	$	871,377	$	—	$	2,258,550	$	5,265,749
December 31, 2018	960,848		430,071		460,121		11,645		—		3,310,307		5,172,992

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Table 36

Repayments of Assets by Line of Business
	Farm & Ranch						USDA Guarantees		Rural Utilities				Institutional Credit
	Loans		Guaranteed Securities		LTSPCs		USDA Securities		Loans		LTSPCs		AgVantage		Total
	(in thousands)
For the quarter ended:
Scheduled	$	174,986	$	2,524	$	32,276	$	29,654	$	54,513	$	14,100	$	547,236	$	855,289
Unscheduled	326,025		1,934		66,074		138,518		—		—		—		532,551
September 30, 2020	$	501,011	$	4,458	$	98,350	$	168,172	$	54,513	$	14,100	$	547,236	$	1,387,840
Scheduled	$	101,264	$	3,043	$	39,010	$	37,879	$	23,589	$	25,132	$	471,295	$	701,212
Unscheduled	248,890		4,034		92,177		154,536		3,935		—		—		503,572
June 30, 2020	$	350,154	$	7,077	$	131,187	$	192,415	$	27,524	$	25,132	$	471,295	$	1,204,784
Scheduled	$	128,768	$	6,132	$	50,393	$	43,069	$	34,235	$	13,593	$	304,540	$	580,730
Unscheduled	191,260		3,888		60,442		78,806		—		—		—		334,396
March 31, 2020	$	320,028	$	10,020	$	110,835	$	121,875	$	34,235	$	13,593	$	304,540	$	915,126
Scheduled	$	57,488	$	4,737	$	39,878	$	25,142	$	10,317	$	10,551	$	656,095	$	804,208
Unscheduled	105,671		3,247		74,121		66,011		34,063		—		13,000		296,113
December 31, 2019	$	163,159	$	7,984	$	113,999	$	91,153	$	44,380	$	10,551	$	669,095	$	1,100,321
Scheduled	$	97,421	$	3,095	$	22,713	$	27,853	$	31,656	$	8,692	$	441,575	$	633,005
Unscheduled	129,676		2,663		76,883		39,442		—		—		1,088		249,752
September 30, 2019	$	227,097	$	5,758	$	99,596	$	67,295	$	31,656	$	8,692	$	442,663	$	882,757
Scheduled	$	39,879	$	3,758	$	58,779	$	38,676	$	6,951	$	17,092	$	612,964	$	778,099
Unscheduled	64,912		3,399		58,979		43,044		—		—		—		170,334
June 30, 2019	$	104,791	$	7,157	$	117,758	$	81,720	$	6,951	$	17,092	$	612,964	$	948,433
Scheduled	$	112,973	$	5,843	$	74,054	$	41,266	$	31,492	$	7,660	$	470,812	$	744,100
Unscheduled	67,608		1,798		50,482		46,798		24,448		—		5,587		196,721
March 31, 2019	$	180,581	$	7,641	$	124,536	$	88,064	$	55,940	$	7,660	$	476,399	$	940,821
Scheduled	$	36,006	$	8,331	$	35,682	$	24,793	$	6,321	$	16,062	$	568,277	$	695,472
Unscheduled	56,299		9,257		33,319		21,135		20,538		—		—		140,548
December 31, 2018	$	92,305	$	17,588	$	69,001	$	45,928	$	26,859	$	16,062	$	568,277	$	836,020
Scheduled	$	73,476	$	5,677	$	21,742	$	28,135	$	25,640	$	8,286	$	1,102,798	$	1,265,754
Unscheduled	77,492		4,562		47,159		35,068		3,476		—		9,760		177,517
September 30, 2018	$	150,968	$	10,239	$	68,901	$	63,203	$	29,116	$	8,286	$	1,112,558	$	1,443,271
For the year ended:
Scheduled	$	307,761	$	17,433	$	195,424	$	132,937	$	80,416	$	43,995	$	2,181,446	$	2,959,412
Unscheduled	367,867		11,107		260,465		195,295		58,511		—		19,675		912,920
December 31, 2019	$	675,628	$	28,540	$	455,889	$	328,232	$	138,927	$	43,995	$	2,201,121	$	3,872,332
Scheduled	$	253,290	$	36,484	$	158,548	$	130,722	$	58,821	$	33,047	$	2,822,608	$	3,493,520
Unscheduled	293,719		27,021		231,221		165,993		90,272		120,022		9,760		938,008
December 31, 2018	$	547,009	$	63,505	$	389,769	$	296,715	$	149,093	$	153,069	$	2,832,368	$	4,431,528

118

Table 37

Lines of Business - Outstanding Business Volume
	Farm & Ranch						USDA Guarantees		Rural Utilities				Institutional Credit
	Loans		Guaranteed Securities		LTSPCs		USDA Securities		Loans		LTSPCs		AgVantage		Total
	(in thousands)
As of:
September 30, 2020	$	5,857,324	$	85,767	$	2,306,258	$	2,735,129	$	2,109,355	$	575,953	$	8,319,502	$	21,989,288
June 30, 2020	5,617,512		90,225		2,310,113		2,677,807		2,101,568		590,053		8,654,830		22,042,108
March 31, 2020	5,358,382		97,302		2,355,910		2,646,206		1,789,726		595,685		8,696,101		21,539,312
December 31, 2019	5,276,557		107,322		2,393,071		2,620,175		1,671,293		609,278		8,440,246		21,117,942
September 30, 2019	4,836,966		115,306		2,441,456		2,567,763		1,612,773		619,829		8,738,266		20,932,359
June 30, 2019	4,754,258		121,064		2,416,030		2,521,394		1,527,150		628,521		8,778,318		20,746,735
March 31, 2019	4,610,897		128,221		2,476,467		2,484,779		1,429,101		645,613		8,731,835		20,506,913
December 31, 2018	4,588,322		135,862		2,509,787		2,515,620		938,843		653,273		8,382,817		19,724,524
September 30, 2018	4,420,619		287,594		2,363,805		2,471,251		962,702		669,335		8,365,280		19,540,586

Table 38

On-Balance Sheet Outstanding Business Volume
	Fixed Rate		5- to 10-Year ARMs & Resets		1-Month to 3-Year ARMs		Total Held in Portfolio
	(in thousands)
As of:
September 30, 2020	$	10,879,372	$	2,811,547	$	5,013,640	$	18,704,559
June 30, 2020	10,793,629		2,845,266		5,076,445		18,715,340
March 31, 2020	10,296,598		2,818,869		4,996,478		18,111,945
December 31, 2019	10,045,712		2,863,199		4,702,577		17,611,488
September 30, 2019	9,642,802		2,850,000		4,549,689		17,042,491
June 30, 2019	9,446,117		2,825,151		4,601,917		16,873,185
March 31, 2019	9,206,082		2,720,639		4,643,506		16,570,227
December 31, 2018	8,325,347		2,717,505		4,705,169		15,748,021
September 30, 2018	7,945,007		2,629,612		4,986,987		15,561,606

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The following table presents the quarterly net effective spread (a non-GAAP measure) by segment:

Table 39

	Net Effective Spread by Line of Business
	Farm & Ranch				USDA Guarantees				Rural Utilities				Institutional Credit				Corporate				Net Effective Spread
	Dollars		Yield		Dollars		Yield		Dollars		Yield		Dollars		Yield		Dollars		Yield		Dollars		Yield
	(dollars in thousands)
For the quarter ended:
September 30, 2020(1)	$	18,025	1.67	%	$	5,865	0.97	%	$	6,939	1.32	%	$	18,601	0.87	%	$	2,372	0.23	%	$	51,802	0.96	%
June 30, 2020	16,733		1.71	%	4,689		0.81	%	5,516		1.15	%	18,782		0.86	%	749		0.08	%	46,469		0.89	%
March 31, 2020	14,938		1.64	%	4,625		0.81	%	4,920		1.14	%	17,702		0.84	%	1,978		0.21	%	44,163		0.89	%
December 31, 2019	16,374		1.90	%	4,363		0.78	%	4,871		1.17	%	18,008		0.85	%	2,375		0.27	%	45,991		0.95	%
September 30, 2019(1)	13,181		1.66	%	4,314		0.79	%	4,502		1.16	%	17,807		0.84	%	2,657		0.30	%	42,461		0.90	%
June 30, 2019	13,335		1.72	%	4,097		0.76	%	3,996		1.10	%	17,371		0.82	%	2,556		0.34	%	41,355		0.91	%
March 31, 2019	12,737		1.70	%	3,964		0.74	%	3,233		1.12	%	16,373		0.79	%	2,494		0.35	%	38,801		0.89	%
December 31, 2018	13,288		1.79	%	4,630		0.85	%	2,833		1.19	%	15,751		0.80	%	2,353		0.36	%	38,855		0.93	%
September 30, 2018	13,887		1.91	%	4,627		0.86	%	2,877		1.18	%	15,642		0.78	%	2,044		0.30	%	39,077		0.93	%

(1)See Note 10 to the consolidated financial statements for a reconciliation of GAAP net interest income by line of business to net effective spread by line of business for the three months ended September 30, 2020 and 2019.

120

The following table presents quarterly core earnings (a non-GAAP measure) reconciled to net income attributable to common stockholders:

Table 40

	Core Earnings by Quarter End
	September 2020		June 2020		March 2020		December 2019		September 2019		June 2019		March 2019		December 2018		September 2018
	(in thousands)
Revenues:
Net effective spread	$	51,802	$	46,469	$	44,163	$	45,991	$	42,461	$	41,355	$	38,801	$	38,855	$	39,077
Guarantee and commitment fees	4,659		4,943		4,896		5,432		5,208		5,276		5,419		5,309		5,170
Other	453		1,048		674		100		389		777		509		(129)		110
Total revenues	56,914		52,460		49,733		51,523		48,058		47,408		44,729		44,035		44,357
Credit related expense/(income):
Provision for/(release of) losses	1,200		51		3,831		2,851		623		420		(393)		166		(3)
REO operating expenses	—		—		—		—		—		64		—		—		—
(Gains)/losses on sale of REO	—		—		(485)		—		—		—		—		—		41
Total credit related expense/(income)	1,200		51		3,346		2,851		623		484		(393)		166		38
Operating expenses:
Compensation and employee benefits	8,791		8,087		10,127		6,732		7,654		6,770		7,606		7,167		6,777
General and administrative	5,044		5,295		5,363		5,773		5,253		4,689		4,596		5,829		4,350
Regulatory fees	725		725		725		725		688		687		688		687		625
Total operating expenses	14,560		14,107		16,215		13,230		13,595		12,146		12,890		13,683		11,752
Net earnings	41,154		38,302		30,172		35,442		33,840		34,778		32,232		30,186		32,567
Income tax expense	8,297		8,016		6,598		7,526		7,018		7,351		6,715		6,431		6,891
Preferred stock dividends	5,166		3,939		3,431		3,432		3,427		3,785		3,296		3,296		3,295
Core earnings	$	27,691	$	26,347	$	20,143	$	24,484	$	23,395	$	23,642	$	22,221	$	20,459	$	22,381
Reconciling items:
(Losses)/gains on undesignated financial derivatives due to fair value changes	(4,149)		8,700		(6,484)		4,469		(7,117)		10,485		2,240		(96)		3,625
(Losses)/gains on hedging activities due to fair value changes	(5,245)		(2,676)		(5,925)		(220)		(4,535)		(1,438)		(2,817)		(853)		1,051
Unrealized (losses)/gains on trading assets	(258)		(20)		106		172		49		61		44		57		(3)
Amortization of premiums/discounts and deferred gains on assets consolidated at fair value	97		35		3		40		(7)		(139)		(16)		67		(38)
Net effects of terminations or net settlements on financial derivatives	233		720		(1,300)		1,339		232		(592)		110		(312)		546
Issuance costs on the retirement of preferred stock	(1,667)		—		—		—		—		(1,956)		—		—		—
Income tax effect related to reconciling items	1,957		(1,419)		2,856		(1,218)		2,389		(1,759)		92		238		(1,088)
Net income attributable to common stockholders	$	18,659	$	31,687	$	9,399	$	29,066	$	14,406	$	28,304	$	21,874	$	19,560	$	26,474

121

Item 3.Quantitative and Qualitative Disclosures About Market Risk

Farmer Mac is exposed to market risk from changes in interest rates.  Farmer Mac manages this market risk by entering into various financial transactions, including financial derivatives, and by monitoring and measuring its exposure to changes in interest rates.  See "Management's Discussion and Analysis of Financial Condition and Results of Operations—Risk Management—Interest Rate Risk" for more information about Farmer Mac's exposure to interest rate risk and its strategies to manage that risk.  For information about Farmer Mac's use of financial derivatives and related accounting policies, see Note 4 to the consolidated financial statements.

Item 4.Controls and Procedures

Management's Evaluation of Disclosure Controls and Procedures. Farmer Mac maintains disclosure controls and procedures designed to ensure that information required to be disclosed in its periodic filings under the Securities Exchange Act of 1934 (“Exchange Act”), including this Quarterly Report on Form 10-Q, is recorded, processed, summarized, and reported on a timely basis. These disclosure controls and procedures include controls and procedures designed to ensure that information required to be disclosed under the Exchange Act is accumulated and communicated to Farmer Mac's management on a timely basis to allow decisions about required disclosure. Management, including Farmer Mac's Chief Executive Officer and Chief Financial Officer, has evaluated the effectiveness of the design and operation of Farmer Mac's disclosure controls and procedures (as defined under Rules 13a-15(e) and 15d-15(e) of the Exchange Act) as of September 30, 2020.

Farmer Mac carried out the evaluation of the effectiveness of its disclosure controls and procedures, required by paragraph (b) of Exchange Act Rules 13a-15 and 15d-15, under the supervision and with the participation of management, including the Chief Executive Officer and Chief Financial Officer. Based upon this evaluation, the Chief Executive Officer and Chief Financial Officer concluded that Farmer Mac's disclosure controls and procedures were effective as of September 30, 2020.

Changes in Internal Control Over Financial Reporting. There were no changes in Farmer Mac's internal control over financial reporting during the three months ended September 30, 2020 that have materially affected, or are reasonably likely to materially affect, Farmer Mac's internal control over financial reporting.

122

PART II

Item 1.Legal Proceedings

None.

Item 1A.Risk Factors

For a discussion of our risk factors see Part I, Item 1A "Risk Factors" of Farmer Mac's Annual Report on Form 10-K for the fiscal year ended December 31, 2019 ("2019 Form 10-K"), as filed with the SEC on February 25, 2020, and as updated by Farmer Mac's Current Report on Form 8-K filed with the SEC on April 6, 2020, Farmer Mac's Quarterly Report on Form 10-Q filed with the SEC on May 11, 2020, and Farmer Mac's Quarterly Report on Form 10-Q filed with the SEC on August 10, 2020 ("2020 Second Quarter Form 10-Q"). The information included in the "Risk Factors" section of the 2020 Second Quarter Form 10-Q is incorporated by reference herein. The risk factors in this section update and supplement the risk factors described in "Risk Factors" in the 2019 Form 10-K and the 2020 Second Quarter Form 10-Q. The primary risks to our business and how we seek to manage those risks are also described in "Management's Discussion and Analysis of Financial Condition and Results of Operations—Risk Management," in the 2019 Form 10-K and in this report. The risks we face could materially affect our business, operations, operating results, financial condition, liquidity, capital levels, or future results and could cause our actual results to differ materially from our past results or the results contemplated by any forward-looking statements we make.

Farmer Mac’s efforts to manage and mitigate these risk factors may be unsuccessful, and the effectiveness of these efforts and the extent to which the COVID-19 pandemic affects Farmer Mac’s business, results of operations, and financial condition will depend on factors beyond its control, including: the duration, severity, and spread of the pandemic; third-party and government actions taken to contain COVID-19 or treat its impact and mitigate public health and economic effects; the nature and extent of the deferments approved for borrowers negatively affected by COVID-19; the conduct of agricultural producer borrowers in response to the COVID-19 pandemic and how quickly and to what extent affected borrowers can recover from the negative economic impact of the pandemic; and how quickly and to what extent normal economic and operating conditions can resume, including whether any future COVID-19 outbreaks interrupt economic recovery. Additional risks and uncertainties not presently known to us or that we currently believe to be immaterial may also adversely affect our business and the trading price of our securities, particularly in light of the fast-changing nature of the COVID-19 pandemic, containment and stimulus measures, continued outbreaks and increasing rates of infection, and the related impacts to economic and operating conditions. Even after the COVID-19 pandemic is over, Farmer Mac may continue to experience material adverse effects to its business as a result of the disruption in the global economy, the domestic agricultural economy, and any resulting recession. Because there have been no comparable recent global pandemics that resulted in similar global macroeconomic impact, Farmer Mac does not yet know the full extent of the effects on its business, operations, or the global economy as a whole, but they could materially and adversely affect Farmer Mac’s business, operations, operating results, financial condition, liquidity, or capital levels as discussed in more detail below.

123

The trading price for Farmer Mac's Class C non-voting common stock may be volatile due to market influences, trading volume, the effects of equity awards for Farmer Mac's officers, directors, and employees, or sales of significant amounts of the stock by large holders.

The trading price of Farmer Mac's Class C non-voting common stock ("Class C stock") has at times experienced substantial price volatility and may continue to be volatile. For example, from January 2020 to October 2020, the closing price of the Class C stock ranged from $43.02 per share to $83.55 per share. The trading price may fluctuate in response to various factors, including short sales, hedging, the presence or absence of a share repurchase program, stock market influences in general that are unrelated to Farmer Mac's operating performance (including COVID-19), or sales of significant amounts of the stock by large holders. Farmer Mac typically grants equity awards each year that are based on the Class C stock, including grants that vest over time or upon the achievement of specified performance goals. Sales of stock acquired upon vesting or the exercise of equity awards by Farmer Mac's officers, directors, or employees, whether under an established trading plan or otherwise, could adversely affect the trading price of the Class C stock.

As to the potential effect of sales of significant amounts of the Class C stock by large holders, Farmer Mac is aware of a regulatory action that could result in significant sales by Zions Bancorporation, National Association (“Zions”), which held 600,000 shares of Class C stock (approximately 6.5% of the outstanding shares) as of November 6, 2020. In a letter granting conditional approval of a proposed merger involving Zions, the applicable federal regulator found that, although Zions had requested to maintain its ownership in Farmer Mac’s Class C stock after the merger, the continued ownership of Class C stock (held by Zions' holding company before the merger) would not be a permissible investment for the surviving national bank entity of the merger based on then-current precedent. Under the terms of the conditional approval letter, Zions was to divest its ownership of the Class C stock by September 30, 2020, however Zions has indicated in its Quarterly Report filed on Form 10-Q on May 6, 2020, that the regulator has granted approval for Zions to extend the original sale deadline from September 30, 2020 to a date which will enable an orderly sale of its Farmer Mac Class C stock. Even though the regulator has made the determination to allow Zions to sell the Class C stock over an extended period, Zions is still required to sell all or a significant amount of its remaining Class C stock, and those sales could adversely affect the trading price of the Class C stock. The merger condition related to Zions’ ownership of Class C stock does not apply to Zions’ ownership of 322,100 shares of Farmer Mac’s Class A voting common stock (approximately 31.25% of the outstanding shares of that stock as of September 30, 2020). Farmer Mac believes that Zions' sales of the Class C stock, and the expectation that its sales will continue until all shares are sold, have in the past and can be expected in the future to negatively impact the potential for increases in the price of the Class C stock.

All of these factors may be exacerbated during periods of low trading volume for Farmer Mac's Class C stock, which has averaged approximately 50,000 shares daily during 2020, and may have a prolonged negative effect on its trading price or increase price volatility.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

(a)Farmer Mac is a federally chartered instrumentality of the United States whose debt and equity securities are exempt from registration under Section 3(a)(2) of the Securities Act of 1933. During third quarter 2020, the following transactions occurred related to Farmer Mac's equity securities that were not

124

registered under the Securities Act of 1933 and were not otherwise reported on a Current Report on Form 8-K:

Class C Non-Voting Common Stock. Under Farmer Mac's policy that permits directors of Farmer Mac to elect to receive shares of Class C non-voting common stock in lieu of their cash retainers, Farmer Mac issued an aggregate of 131 shares of its Class C non-voting common stock in July 2020 to the four directors who elected to receive stock in lieu of their cash retainers. Farmer Mac calculated the number of shares issued to the directors based on a price of $64.01 per share, which was the closing price of the Class C non-voting common stock on June 30, 2020 (the last trading day of the previous quarter) as reported by the New York Stock Exchange.

(b)Not applicable.

(c)None.

Item 3.Defaults Upon Senior Securities

(a) None.

(b) None.

Item 4.Mine Safety Disclosures

Not applicable.

Item 5.Other Information

(a) None.

(b) None.

125

Item 6.Exhibits

*	3.1	—	Title VIII of the Farm Credit Act of 1971, as most recently amended on June 18, 2020 (Previously filed as Exhibit 3.1 to Form 10-Q filed August 10, 2020).
*	3.2	—	Amended and Restated By-Laws of the Registrant (Previously filed as Exhibit 3.1 to Form 8-K filed May 12, 2020).
*	4.1	—	Specimen Certificate for Farmer Mac Class A Voting Common Stock (Previously filed as Exhibit 4.1 to Form 10-Q filed May 15, 2003).
*	4.2	—	Specimen Certificate for Farmer Mac Class B Voting Common Stock (Previously filed as Exhibit 4.2 to Form 10-Q filed May 15, 2003).
*	4.3	—	Specimen Certificate for Farmer Mac Class C Non-Voting Common Stock (Previously filed as Exhibit 4.3 to Form 10-Q filed May 15, 2003).
*	4.4	—	Specimen Certificate for 5.875% Non-Cumulative Preferred Stock, Series A (Previously filed as Exhibit 4.4.1 to Form 10-Q filed May 9, 2013).
*	4.4.1	—	Certificate of Designation of Terms and Conditions of 5.875% Non-Cumulative Preferred Stock, Series A (Previously filed as Exhibit 4.1 to Form 8-A filed January 17, 2013).
*	4.5	—	Specimen Certificate for 6.000% Fixed-to-Floating Rate Non-Cumulative Preferred Stock, Series C (Previously filed as Exhibit 4.6 to Form 10-Q filed August 11, 2014).
*	4.5.1	—	Certificate of Designation of Terms and Conditions of 6.000% Fixed-to-Floating Rate Non-Cumulative Preferred Stock, Series C (Previously filed as Exhibit 4.1 to Form 8-A filed June 20, 2014).
*	4.6	—	Specimen Certificate for 5.700% Non-Cumulative Preferred Stock, Series D (Previously filed as Exhibit 4.7 to Form 10-Q filed August 1, 2019).
*	4.6.1	—	Certificate of Designation of Terms and Conditions of 5.700% Non-Cumulative Preferred Stock, Series D (Previously filed as Exhibit 4.1 to Form 8-A filed May 13, 2019).
*	4.7	—	Specimen Certificate for 5.750% Non-Cumulative Preferred Stock, Series E (Previously filed as Exhibit 4.7 to Form 10-Q filed August 10, 2020).
*	4.7.1	—	Certificate of Designation of Terms and Conditions of 5.750% Non-Cumulative Preferred Stock, Series E (Previously filed as Exhibit 4.1 to Form 8-A filed May 20, 2020).
**	4.8		Specimen Certificate for 5.250% Non-Cumulative Preferred Stock, Series F.
*	4.8.1		Certificate of Designation of Terms and Conditions of 5.250% Non-Cumulative Preferred Stock, Series F (Previously filed as Exhibit 4.1 to Form 8-A filed August 20, 2020).
**	4.9	—	Description of the Registrant's securities that are registered under Section 12 of the Securities Exchange Act of 1934.
*	21	—	List of the Registrant's subsidiaries (Previously filed as Exhibit 21 to Form 10-K filed March 8, 2018).
**	31.1	—	Certification of Registrant's principal executive officer relating to the Registrant's Quarterly Report on Form 10-Q for the quarter ended September 30, 2020, pursuant to Rule 13a-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
**	31.2	—	Certification of Registrant's principal financial officer relating to the Registrant's Quarterly Report on Form 10-Q for the quarter ended September 30, 2020, pursuant to Rule 13a-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
**	32	—	Certification of Registrant's principal executive officer and principal financial officer relating to the Registrant's Quarterly Report on Form 10-Q for the quarter ended September 30, 2020, pursuant to 18 U.S.C. § 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
**	101.INS	—	Inline XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document
**	101.SCH	—	Inline XBRL Taxonomy Extension Schema
**	101.CAL	—	Inline XBRL Taxonomy Extension Calculation
**	101.DEF	—	Inline XBRL Taxonomy Extension Definition
**	101.LAB	—	Inline XBRL Taxonomy Extension Label
**	101.PRE	—	Inline XBRL Taxonomy Extension Presentation
**	104	—	Cover Page Inline Interactive Data File - the cover page interactive data file does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document included as Exhibit 101

126

*	Incorporated by reference to the indicated prior filing.
**	Filed with this report.
#	Portions of this exhibit have been omitted pursuant to a request for confidential treatment.
†	Management contract or compensatory plan.

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

FEDERAL AGRICULTURAL MORTGAGE CORPORATION

/s/ Bradford T. Nordholm		November 9, 2020
By:	Bradford T. Nordholm	Date
	President and Chief Executive Officer
	(Principal Executive Officer)

/s/ Aparna Ramesh		November 9, 2020
By:	Aparna Ramesh	Date
	Executive Vice President - Chief Financial Officer and Treasurer
	(Principal Financial Officer)

127

EX-4.8

Exhibit 4.8

Established under the Laws of the United States Pursuant to an Act of Congress

FEDERAL AGRICULTURAL

MORTGAGE CORPORATION

Series F Certificate No.	No. of Series F Shares 4,800,000
1	CUSIP No.: 313148843

5.250% Non-Cumulative Preferred Stock, Series F

        THIS CERTIFIES THAT Cede & Co. is the registered holder of 4,800,000 fully paid and non-assessable shares, par value $25.00 per share, of 5.250% Non-Cumulative Preferred Stock, Series F of the Federal Agricultural Mortgage Corporation (hereinafter and on the reverse hereof referred to as the “Corporation”) transferable on the books and records of the Continental Stock Transfer & Trust Company (the “Transfer Agent”) in accordance with the applicable procedures of the Transfer Agent and the Depository Trust Company, a New York corporation (“DTC”).

        IN WITNESS WHEREOF, the Corporation has caused this Certificate to be signed by its duly authorized officers this 20th day of August, 2020.

____SPECIMEN___________________	___SPECIMEN____________________
President and Chief Executive Officer	Executive Vice President – General Counsel and Secretary

    THE PREFERRED STOCK IS NOT A DEBT OR OBLIGATION OF, AND IS NOT GUARANTEED BY, THE UNITED STATES, THE FARM CREDIT ADMINISTRATION, THE FARM CREDIT SYSTEM OR ANY FEDERAL AGENCY OR INSTRUMENTALITY OR ANY INDIVIDUAL INSTITUTION OF THE FARM CREDIT SYSTEM OTHER THAN THE FEDERAL AGRICULTURAL MORTGAGE CORPORATION.

THE INFORMATION CONTAINED IN THIS CERTIFICATE IS A SUMMARY OF CERTAIN PROVISIONS OF TITLE VIII OF THE FARM CREDIT ACT OF 1971, AS AMENDED (THE “ACT”), WHICH SUMMARY IS QUALIFIED IN ITS ENTIRETY BY REFERENCE THERETO.

THE SECURITIES EVIDENCED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”) AND ARE BEING ISSUED PURSUANT TO THE EXEMPTION AFFORDED BY SECTION 3(a)(2) OF THE SECURITIES ACT. THEREFORE, THE SECURITIES ARE NOT RESTRICTED SECURITIES AND ARE FREELY TRANSFERABLE.

THE HOLDER OF THE SECURITIES EVIDENCED BY THIS CERTIFICATE IS ENTITLED TO CERTAIN RIGHTS AND SUBJECT TO CERTAIN OBLIGATIONS,

Exhibit 4.8

INCLUDING PROVISIONS RELATING TO REDEMPTION, LIQUIDATION PREFERENCES AND DIVIDEND RATE, AS SET FORTH IN THE CERTIFICATE OF DESIGNATION OF TERMS AND CONDITIONS OF 5.250% NON-CUMULATIVE PREFERRED STOCK, SERIES F. THE SECURITIES EVIDENCED BY THIS CERTIFICATE SHALL NOT HAVE ANY PREEMPTIVE RIGHTS TO PURCHASE UNISSUED OR TREASURY SHARES OF THE CORPORATION.

THIS CERTIFICATE AND SHARES REPRESENTED HEREBY ARE ISSUED AND SHALL BE SUBJECT TO THE PROVISIONS OF THE ACT, AND THE BYLAWS, RULES AND REGULATIONS OF THE CORPORATION, AND ALL AMENDMENTS THERETO, TO ALL OF WHICH THE HOLDER HEREOF BY ACCEPTANCE OF THIS CERTIFICATE ASSENTS.

THE CORPORATION IS AUTHORIZED TO ISSUE MORE THAN ONE CLASS OF STOCK, INCLUDING ADDITIONAL PREFERRED STOCK DESIGNATED AS 5.250% NON-CUMULATIVE PREFERRED STOCK, SERIES F. THE CORPORATION WILL FURNISH WITHOUT CHARGE TO EACH STOCKHOLDER WHO SO REQUESTS THE POWERS, DESIGNATIONS, PREFERENCES, AND RELATIVE, PARTICIPATING, OPTIONAL, OR OTHER SPECIAL RIGHTS OF EACH CLASS OF STOCK OR SERIES THEREOF AND THE QUALIFICATIONS, LIMITATIONS OR RESTRICTIONS OF SUCH PREFERENCES AND/OR RIGHTS.

        UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF DTC, TO THE CORPORATION OR THE TRANSFER AGENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

Exhibit 4.8

REVERSE OF SECURITY

1. Designation, Par Value, Number of Shares, and Seniority

The class of preferred stock of Farmer Mac created hereby (the “Preferred Stock”) shall be designated “5.250% Non-Cumulative Preferred Stock, Series F,” shall have a par value of $25.00 per share and a liquidation preference of $25.00 per share and shall consist of 4,800,000shares. The Board of Directors, or a duly authorized committee thereof, shall be permitted to increase the authorized number of such shares at any time and from time to time. The Preferred Stock shall rank senior to the Class A Voting Common Stock, Class B Voting Common Stock, and Class C Non-Voting Common Stock of Farmer Mac (collectively, the “Common Stock”), and on parity with the outstanding 5.875% Non-Cumulative Preferred Stock, Series A, the outstanding 6.000% Fixed-to-Floating Rate Non-Cumulative Preferred Stock, Series C, the outstanding 5.700% Non-Cumulative Preferred Stock, Series D and the outstanding 5.750% Non-Cumulative Preferred Stock, Series E of Farmer Mac (collectively, the “Outstanding Parity Preferred Stock”), in each case to the extent provided in this Certificate.

2. Dividends

(a) Subject to paragraphs (2) and (3) of Section 8.4(c) of the Farm Credit Act of 1971, as amended (12 U.S.C. §§ 2279aa-4(c)), holders of outstanding shares of the Preferred Stock shall be entitled to receive, ratably, when, as, and if declared by the Board of Directors, in its sole discretion, out of funds legally available for dividend payments, on a non-cumulative basis, quarterly cash dividends at the annual rate of 5.250% of the liquidation preference of the Preferred Stock, or $1.3125per share per year of Preferred Stock. Dividends on the Preferred Stock shall be payable when, as, and if declared by the Board of Directors, on January 17, April 17, July 17 and October 17 of each year (each, a “Dividend Payment Date”), beginning on October 17, 2020. If a Dividend Payment Date is not a “Business Day,” the related dividend (if declared) shall be paid on the next Business Day with the same force and effect as though paid on the Dividend Payment Date, without any increase to account for the period from such Dividend Payment Date through the date of actual payment. For these purposes, “Business Day” means a day other than (i) a Saturday or Sunday, (ii) a day on which New York City banks are closed, or (iii) a day on which the offices of Farmer Mac are closed. The “Dividend Period” relating to a Dividend Payment Date shall be the period from, but not including, the preceding Dividend Payment Date (or from, but not including, August 20, 2020 in the case of the first Dividend Payment Date) (regardless of whether or not a dividend was declared and paid for such previous Dividend Period) through and including the related Dividend Payment Date. If declared, the dividend payable in respect of a Dividend Period shall be $0.328125per share, or such lesser amount as the Board of Directors may determine; provided, however, that the dividend, when, as, and if declared by the Board of Directors, for the first Dividend Period shall be $0.2078125per share, or such lesser amount as the Board of Directors may determine. The amount of dividends payable for any period shorter than a full quarterly Dividend Period shall be computed on the basis of a 360-day year consisting of twelve 30-day months. Dividends shall be paid to holders of record of outstanding shares of the Preferred Stock as they appear in the books and records of Farmer Mac on the record date fixed by the Board of Directors, not to be earlier

Exhibit 4.8

than 45 days nor later than 10 days preceding the applicable Dividend Payment Date. Notwithstanding any other provision hereof to the contrary, dividends on the Preferred Stock shall not be declared, paid, or set aside for payment to the extent such act would cause Farmer Mac to fail to comply with laws or regulations applicable thereto, including any applicable capital adequacy requirements.

(b) No dividends shall be declared or paid or set apart for payment on the Common Stock or any other class or series of stock ranking junior to the Preferred Stock unless full dividends have been declared and paid for the then-current Dividend Period or set apart or ordered by our Board of Directors to be set apart for payment on the outstanding Preferred Stock in respect of the then-current Dividend Period. The foregoing dividend preference shall not in any way create any claim or right in favor of the holders of the Preferred Stock in the event that Farmer Mac shall not have declared or paid or set apart or the Board of Directors shall not have ordered to be set apart dividends on the Preferred Stock in respect of any prior Dividend Period. In the event that Farmer Mac shall not declare any one or more dividends or any part thereof on the Preferred Stock, the holders of the Preferred Stock shall not have any claim in respect of such non-payment.

(c) Full dividends will not be declared or paid or set apart for payment on any outstanding class or series of stock issued by Farmer Mac of equal priority as to dividends as the Preferred Stock, including the Outstanding Parity Preferred Stock, unless dividends on the Preferred Stock for the then-current Dividend Period are declared and paid or set apart for payment in full. The Board of Directors may, in its discretion, choose to declare and pay less than a full dividend on the Preferred Stock. In the event that the Board of Directors declares less than a full dividend on the Preferred Stock and/or any other outstanding class or series of stock of equal priority as to dividends, including the Outstanding Parity Preferred Stock, the Board of Directors shall declare dividends on the Preferred Stock and such other outstanding stock, as applicable, on a proportional basis such that the amount of such dividends declared per share shall bear to each other the same ratio that full dividends per share for the then-current Dividend Period on the Preferred Stock and full dividends per share on any such other outstanding stock of equal priority as to dividends, bear to each other; provided, that, solely for purposes of calculating the ratio set forth in the foregoing sentence, the amount of full dividends per share for the then-current Dividend Period on the Preferred Stock and/or the full dividends per share on any such other outstanding stock of equal priority, as applicable, shall be increased by the amount per share of dividends that have been declared but not paid in respect of such stock, if any.

(d) Notwithstanding any other provision of this Certificate, the Board of Directors, in its sole discretion, may choose to pay dividends on the Preferred Stock without the payment of any dividends on the Common Stock or any other outstanding class or series of stock ranking junior to the Preferred Stock with respect to the payment of dividends.

(e) No dividend shall be declared or paid or set apart for payment on any shares of the Preferred Stock if at the same time any arrears or default exists in the payment of dividends on the Preferred Stock or on any outstanding class or series of stock of Farmer Mac ranking senior to or (except as provided herein) on parity with the Preferred Stock with respect to the payment

Exhibit 4.8

of dividends, including the Outstanding Parity Preferred Stock. If and whenever dividends, having been declared, shall not have been paid in full, as aforesaid, on shares of the Preferred Stock and on the shares of any other class or series of stock of Farmer Mac ranking on parity with the Preferred Stock with respect to the payment of dividends, all such dividends that have been declared on shares of the Preferred Stock and on the shares of any such other class or series shall be paid pro rata, so that the respective amounts of dividends paid per share on the Preferred Stock and on such other class or series shall in all cases bear to each other the same ratio that the respective amounts of dividends declared but unpaid per share on the shares of the Preferred Stock and on the shares of such other class or series bear to each other.

(f) Holders of shares of the Preferred Stock shall not be entitled to any dividends, whether payable in cash or in property, other than as herein provided and shall not be entitled to interest, or any sum in lieu of interest, on or in respect of any dividend payment.

(g) If Farmer Mac defaults on the payment of the equivalent of six quarters of declared dividends (regardless of whether such quarters are consecutive quarters), then the holders of the Preferred Stock will have the right to elect two observers to the Board of Directors.

3. Optional Redemption

(a) The Preferred Stock shall not be redeemable before October 17, 2025. On that date and on any Dividend Payment Date thereafter, subject to the notice provisions set forth in Section 3(b) below and to any further limitations that may be imposed by law, Farmer Mac may redeem the Preferred Stock, in whole or in part, out of funds legally available therefor, at the redemption price of $25.00 per share plus an amount, determined in accordance with Section 2 above, equal to the amount of any declared and unpaid dividends through and including the date of redemption. If less than all of the outstanding shares of the Preferred Stock are to be redeemed, Farmer Mac shall select shares to be redeemed from the outstanding shares not previously called for redemption by lot or pro rata (as nearly as possible).

(b) In the event Farmer Mac shall redeem any or all of the Preferred Stock, Farmer Mac shall give notice of such redemption by first class mail, postage prepaid, mailed neither less than 30 nor more than 60 days prior to the redemption date, to each holder of record of the shares of the Preferred Stock being redeemed, at such holder’s address as the same appears in the books and records of Farmer Mac; provided, that, if the Preferred Stock is held in book-entry form through DTC, Farmer Mac may give such notice in any manner permitted by DTC. Each such notice shall state the number of shares to be redeemed, the redemption price, the redemption date, and the procedures a holder must follow to submit its shares of Preferred Stock for redemption. Failure to duly give notice, or any defect in the notice, to any holder of the Preferred Stock shall not affect the validity of the proceedings for the redemption of shares of any other holder of the Preferred Stock being redeemed.

(c) If any redemption date is not a Business Day, payment of the redemption price may be made on the next Business Day with the same force and effect as if made on the redemption date, and no interest, additional dividends or other sums will accrue on the amount payable from the redemption date to the next Business Day.

Exhibit 4.8

(d) Notice having been mailed as aforesaid, from and after the redemption date specified therein and upon payment of the consideration set forth in Section 3(a) above, said shares of the Preferred Stock shall no longer be deemed to be outstanding, and all rights of the holders thereof as holders of the Preferred Stock shall cease, with respect to shares so redeemed.

(e) Any shares of the Preferred Stock so redeemed shall, after such redemption, no longer have the status of issued or outstanding shares.

(f) The Preferred Stock shall not be subject to any mandatory redemption, sinking fund, or other similar provisions. In addition, holders of the Preferred Stock shall have no right to require redemption of any shares of the Preferred Stock.

4. No Voting Rights

Except as set forth in Section 9, the shares of the Preferred Stock shall not have any voting powers, either general or special, or have any consent rights.

5. No Conversion or Exchange Rights

The holders of shares of the Preferred Stock shall not have any right to convert such shares into or exchange such shares for any other class or series of stock or obligations of Farmer Mac.

6. No Preemptive Rights

No holder of the Preferred Stock shall, as such holder, be entitled as a matter of right to subscribe for or purchase, or have any preemptive right with respect to, any new or additional issue of other shares, rights, options, or other securities of any class of Farmer Mac whatsoever, whether now or hereafter authorized and whether issued for cash or other consideration or by way of dividend.

7. Liquidation Rights and Preference

(a) Except as otherwise set forth herein, upon the voluntary or involuntary dissolution, liquidation, or winding up of Farmer Mac, after payment of or provision for the liabilities of Farmer Mac and the expenses of such dissolution, liquidation, or winding up, the holders of the outstanding shares of the Preferred Stock shall be entitled to receive out of the assets of Farmer Mac available for distribution to stockholders, before any payment or distribution shall be made on the Common Stock or any other class or series of stock of Farmer Mac ranking junior to the Preferred Stock upon liquidation, the amount of $25.00 per share plus an amount, determined in accordance with Section 2 above, equal to the amount of any declared and unpaid dividends through and including the date of payment in respect of such dissolution, liquidation, or winding up. The holders of the outstanding shares of any class or series of stock of Farmer Mac ranking on parity with the Preferred Stock upon liquidation, including the Outstanding Parity Preferred Stock, shall be entitled to receive out of the assets of Farmer Mac available for distribution to stockholders, before any such payment or distribution shall be made on the Common Stock or

Exhibit 4.8

any other class or series of stock of Farmer Mac ranking junior to the Preferred Stock and to such parity stock upon dissolution, liquidation, or winding up, any corresponding preferential amount to which the holders of such parity stock may, by the terms thereof, be entitled; provided, however, that if the assets of Farmer Mac available for distribution to stockholders shall be insufficient for the payment in full of the aggregate amount to which the holders of the outstanding shares of the Preferred Stock and the holders of the outstanding shares of such parity stock shall be entitled to receive upon such dissolution, liquidation, or winding up of Farmer Mac as aforesaid, then, subject to paragraph (b) of this Section 7, all of the assets of Farmer Mac available for distribution to stockholders shall be distributed to the holders of outstanding shares of the Preferred Stock and to the holders of outstanding shares of such parity stock pro rata, so that the amounts so distributed to holders of the Preferred Stock and to holders of such classes or series of such parity stock, respectively, shall bear to each other the same ratio that the respective distributive amounts to which they are so entitled bear to each other. After the payment of the aforesaid amounts to which they are entitled, the holders of outstanding shares of the Preferred Stock and the holders of outstanding shares of any such parity stock shall not be entitled to any further participation in any distribution of assets of Farmer Mac. Solely for purposes of Section 8.4(e)(3) of the Farm Credit Act of 1971, as amended, the Preferred Stock shall be deemed to have a par value of $25.00 per share.

(b) Notwithstanding the foregoing, upon the dissolution, liquidation, or winding up of Farmer Mac, the holders of shares of the Preferred Stock then outstanding shall not be entitled to be paid any amounts to which such holders are entitled pursuant to paragraph (a) of this Section 7 unless and until the holders of any classes or series of stock of Farmer Mac ranking senior to the Preferred Stock upon liquidation shall have been paid all amounts to which such classes or series are entitled pursuant to their respective terms.

(c) Neither the sale, lease, or exchange of all or substantially all of the property or business of Farmer Mac, nor the merger, consolidation, or combination of Farmer Mac into or with any other corporation or entity, shall be deemed to be a dissolution, liquidation, or winding up for the purpose of this Section 7.

8. Additional Preferred Stock and Additional Classes or Series of Stock

The Board of Directors shall have the right at any time in the future to authorize, create, and issue, by resolution or resolutions, additional Preferred Stock or one or more additional classes or series of stock of Farmer Mac, and to determine and fix the distinguishing characteristics and the relative rights, preferences, privileges and other terms of the shares thereof. Any such class or series of stock may rank senior to, on parity with, or junior to the Preferred Stock as to dividends, upon liquidation, or otherwise.

9. Amendments

Farmer Mac, by or under the authority of the Board of Directors, may amend, alter, supplement, or repeal any provision of this Certificate pursuant to the following terms and conditions:

Exhibit 4.8

(a) Without the consent of the holders of the Preferred Stock, Farmer Mac may amend, alter, supplement, or repeal any provision of this Certificate to cure any ambiguity, to correct or supplement any provision herein which may be defective or inconsistent with any other provision herein, or to make any other provisions with respect to matters or questions arising under this Certificate, provided that such action shall not materially and adversely affect the powers, preferences, rights, privileges, qualifications, limitations, restrictions, terms, or conditions of the Preferred Stock.

(b) The consent of the holders of at least two-thirds of all of the shares of the Preferred Stock at the time outstanding, given in person or by proxy, either in writing or by a vote at a meeting called for the purpose at which the holders of shares of the Preferred Stock shall vote together as a class, shall be necessary for authorizing, effecting, or validating the amendment, alteration, supplementation, or repeal of the provisions of this Certificate if such amendment, alteration, supplementation, or repeal would materially and adversely affect the powers, preferences, rights, privileges, qualifications, limitations, restrictions, terms, or conditions of the Preferred Stock. Notwithstanding the foregoing sentence, the 5.250% annual dividend rate, the redemption price, or the liquidation preference of the Preferred Stock shall not be reduced without the unanimous consent of the holders of all shares of the Preferred Stock. Any increase in the amount of authorized or issued Preferred Stock, or the creation and issuance of any other class or series of stock of Farmer Mac, or the issuance of additional shares of any existing class or series of stock of Farmer Mac, whether ranking senior to, on parity with, or junior to the Preferred Stock as to dividends, liquidation rights, or otherwise, shall be deemed not to constitute such an amendment, alteration, supplementation, or repeal.

(c) Holders of the Preferred Stock shall be entitled to one vote per share on matters on which their consent is required pursuant to subparagraph (b) of this Section 9. Consents shall be effective when duly executed and delivered to Farmer Mac in accordance with the applicable procedures of DTC. In connection with any meeting of such holders, the Board of Directors shall fix a record date, neither earlier than 60 days nor later than 10 days prior to the date of such meeting, and holders of record of shares of the Preferred Stock on such record date shall be entitled to notice of and to vote at any such meeting and any adjournment. The Board of Directors, or such person or persons as it may designate, may establish reasonable rules and procedures as to the solicitation of the consent of holders of the Preferred Stock at any such meeting or otherwise, which rules and procedures shall conform to the requirements of any national securities exchange on which the Preferred Stock may be listed at such time.

10. Priority

Any stock of any class or series of Farmer Mac shall be deemed to rank:

(a) senior to the shares of the Preferred Stock, either as to dividends or upon liquidation, if the holders of such class or series shall be entitled to the receipt of dividends or of amounts distributable upon dissolution, liquidation, or winding up of Farmer Mac, as the case may be, in preference or priority to the holders of shares of the Preferred Stock;

Exhibit 4.8

(b) on parity with shares of the Preferred Stock, either as to dividends or upon liquidation, whether or not the dividend rates or amounts, dividend payment dates, or redemption or liquidation prices per share, if any, be different from those of the Preferred Stock, if the holders of such class or series shall be entitled to the receipt of dividends or of amounts distributable upon dissolution, liquidation, or winding up of Farmer Mac, as the case may be, in proportion to their respective dividend rates or amounts or liquidation prices, without preference or priority, one over the other, as between the holders of such class or series and the holders of shares of the Preferred Stock; and

(c) junior to shares of the Preferred Stock, either as to dividends or upon liquidation, if such class or series shall be Common Stock, or if the holders of shares of the Preferred Stock shall be entitled to receipt of dividends or of amounts distributable upon dissolution, liquidation, or winding up of Farmer Mac, as the case may be, in preference or priority to the holders of shares of such class or series.

11. Notices

Any notice, demand, or other communication that by any provision of this Certificate is required or permitted to be given or served to or upon Farmer Mac shall be given or served in writing addressed (unless and until another address shall be published by Farmer Mac) to the Federal Agricultural Mortgage Corporation, 1999 K Street, N.W., 4th Floor, Washington, D.C. 20006, Attention: Executive Vice President—General Counsel and Secretary. Such notice, demand, or other communication to or upon Farmer Mac shall be deemed to have been sufficiently given or made only upon actual receipt of a writing by Farmer Mac. Any notice, demand, or other communication that by any provision of this Certificate is required or permitted to be given or served by Farmer Mac hereunder may be given or served by being deposited first class, postage prepaid, in the United States mail addressed (1) to the holder as such holder’s name and address may appear at such time in the books and records of Farmer Mac or (2) if to a person or entity other than a holder of record of the Preferred Stock, to such person or entity at such address as appears to Farmer Mac to be appropriate at such time; provided that if the Preferred Stock is held in book-entry form through DTC, Farmer Mac may give such notice in any manner permitted by DTC. Such notice, demand, or other communication shall be deemed to have been sufficiently given or made, for all purposes, upon mailing.

12. Miscellaneous

(a) Farmer Mac and any agent of Farmer Mac may deem and treat the holder of a share or shares of Preferred Stock, as shown in Farmer Mac’s books and records, as the absolute owner of such share or shares of Preferred Stock for the purpose of receiving payment of dividends in respect of such share or shares of Preferred Stock and for all other purposes whatsoever, and neither Farmer Mac nor any agent of Farmer Mac shall be affected by any notice to the contrary. All payments made to or upon the order of any such person shall be valid and, to the extent of the sum or sums so paid, effectual to satisfy and discharge liabilities for moneys payable by Farmer Mac on or with respect to any such share or shares of Preferred Stock.

Exhibit 4.8

(b) The shares of the Preferred Stock, when duly issued, shall be fully paid and non-assessable.

(c) Farmer Mac may at its option issue shares of Preferred Stock without certificates.

(d) For purposes of this Certificate, the term “Farmer Mac” means the Federal Agricultural Mortgage Corporation and any successor thereto by operation of law or by reason of a merger, consolidation, or combination.

(e) This Certificate and the respective rights and obligations of Farmer Mac and the holders of the Preferred Stock with respect to such Preferred Stock shall be construed in accordance with and governed by the laws of the United States, provided that the law of the District of Columbia shall serve as the federal rule of decision in all instances except where such law is inconsistent with Farmer Mac’s enabling legislation, its public purposes or any provision of this Certificate.

(f) RECEIPT AND ACCEPTANCE OF A SHARE OR SHARES OF THE PREFERRED STOCK BY OR ON BEHALF OF A HOLDER SHALL CONSTITUTE THE UNCONDITIONAL ACCEPTANCE BY THE HOLDER (AND ALL OTHERS HAVING BENEFICIAL OWNERSHIP OF SUCH SHARE OR SHARES) OF ALL OF THE TERMS AND PROVISIONS OF THIS CERTIFICATE. NO SIGNATURE OR OTHER FURTHER MANIFESTATION OF ASSENT TO THE TERMS AND PROVISIONS OF THIS CERTIFICATE SHALL BE NECESSARY FOR ITS OPERATION OR EFFECT AS BETWEEN FARMER MAC AND THE HOLDER (AND ALL SUCH OTHERS).

Exhibit 4.8

ASSIGNMENT FORM

FOR VALUE RECEIVED, the undersigned does hereby sell, assign and transfer ____________ Shares evidenced by the within Certificate unto:

    (Insert assignee’s soc. sec. or tax I.D. no.)

(Print or type assignee’s name, address and zip code)

, and does hereby irrevocably constitute and irrevocably appoints:

agent to transfer the said Shares on the books of the Transfer Agent, with full power of substitution in the premises.

Dated: __________________

Signature: _______________________

Signature Guarantee*: _________________________

*    Participant in a recognized Signature Guarantee Medallion Program (or other signature guarantor acceptable to the Transfer Agent).

EX-4.9

Exhibit 4.9

Description of Registrant’s Securities

Class A voting common stock

–Farmer Mac’s Class A voting common stock has a par value of $1.

–Farmer Mac’s statutory charter restricts ownership of Farmer Mac's Class A voting common stock to banks, insurance companies, and other financial institutions or similar entities that are not institutions of the Farm Credit System. Shares of Class A voting common stock may only be transferred to other banks, insurance companies, and other financial institutions or similar entities that are not institutions of the Farm Credit System.

–The charter also provides that five members of Farmer Mac's 15-member board of directors (the “Board”) are elected by a plurality of the votes of the Class A stockholders each year. Each share of Class A voting common stock shall be entitled to one vote for each of the five seats eligible to be elected by holders of Class A voting common stock, with rights of cumulative voting at all elections of directors.

–The charter limits the amount of Class A voting common stock that any one holder may own to no more than 33% of the outstanding shares of Class A voting common stock.

–Except for voting rights with respect to Farmer Mac’s Board and transfer rights (in each case, as described above), there are no other provisions in Farmer Mac’s charter or bylaws permitting a change of control of Farmer Mac absent action on the part of Congress (or the Farm Credit Administration, in the event of a conservatorship).

–Dividends as may be declared by the Board, in the discretion of the Board, shall be paid by Farmer Mac to holders of the Class A voting common stock pro rata based on at minimum the total number of shares of both the Class A voting common stock and the Class B voting common stock outstanding. Declaration and payment of dividends are subject to:

–the Board’s determination that adequate provision has been made for Farmer Mac’s reserve against guarantee losses prescribed by section 8.10(c)(1) of its charter;

–there being no outstanding obligations of Farmer Mac to the U.S. Treasury Department under section 8.13 of Farmer Mac’s charter; and

–all dividends due on preferred stock have been paid.

–The Class A voting common stock does not contain any conversion terms, sinking fund provisions, redemption provisions, or preemption rights, and the holders of these shares do not face liability to further calls or assessment by Farmer Mac for any reason. There are no provisions discriminating against any existing or prospective holder as a result of such holder owning a substantial amount of shares or other securities of Farmer Mac.

1

Exhibit 4.9

–In the event of any liquidation, dissolution, or winding up of the business of Farmer Mac, the holders of all series of Farmer Mac’s preferred stock shall be paid in full at the par value of that preferred stock, plus all accrued dividends, before the holders of any class of common shares (including Class A voting common stock) receive any payment. Shares of Class A voting common stock have equal liquidation preference to all other classes of Farmer Mac’s common stock and would receive pro rata distribution of any funds remaining after full liquidation of outstanding preferred stock.

–The rights of holders may be modified otherwise than by a vote of a majority or more of the shares outstanding, voting as a class, under the following circumstances:

–Congress may modify Farmer Mac’s charter at any time and in any manner, which could affect the rights of any of Farmer Mac’s securityholders, including holders of Class A voting common stock; and

–Farmer Mac’s charter prescribes that the Board may adopt and amend bylaws not inconsistent with Farmer Mac’s charter or other laws or regulations, which may have the effect of modifying the rights of holders of Class A voting common stock.

–The rights of holders of Class A voting common stock are materially limited or qualified by the rights of holders of Farmer Mac’s outstanding series of preferred stock in dividend payment and liquidation preference (in each case as described above). The rights of holders of Class A voting common stock are otherwise not materially limited or qualified by the rights of any other holders of Farmer Mac’s outstanding securities.

Class B voting common stock

–Farmer Mac’s Class B voting common stock has a par value of $1.

–Farmer Mac’s statutory charter restricts ownership of Farmer Mac's Class B voting common stock to institutions of the Farm Credit System. Shares of Class B voting common stock may only be transferred to other institutions of the Farm Credit System.

–The charter also provides that five members of Farmer Mac's 15-member board of directors (the “Board”) are elected by a plurality of the votes of the Class B stockholders each year. Each share of Class B voting common stock shall be entitled to one vote for each of the five seats eligible to be elected by holders of Class B voting common stock, with rights of cumulative voting at all elections of directors.

–

–The charter does not prescribe a limit for the amount of Class B voting common stock that any one holder may own.

–Except for voting rights with respect to Farmer Mac’s Board and transfer rights (in each case, as described above), there are no other provisions in Farmer Mac’s charter or bylaws permitting a change of control of Farmer Mac absent action on the part of Congress (or the Farm Credit Administration, in the event of a conservatorship).

2

Exhibit 4.9

–Dividends as may be declared by the Board, in the discretion of the Board, shall be paid by Farmer Mac to holders of the Class B voting common stock pro rata based on at minimum the total number of shares of both the Class A voting common stock and the Class B voting common stock outstanding. Declaration and payment of dividends are subject to:

–the Board’s determination that adequate provision has been made for Farmer Mac’s reserve against guarantee losses prescribed by section 8.10(c)(1) of its charter;

–there being no outstanding obligations of Farmer Mac to the U.S. Treasury Department under section 8.13 of Farmer Mac’s charter; and

–all dividends due on preferred stock have been paid.

–The Class B voting common stock does not contain any conversion terms, sinking fund provisions, redemption provisions, or preemption rights, and the holders of these shares do not face liability to further calls or assessment by Farmer Mac for any reason. There are no provisions discriminating against any existing or prospective holder as a result of such holder owning a substantial amount of shares or other securities of Farmer Mac.

–In the event of any liquidation, dissolution, or winding up of the business of Farmer Mac, the holders of all series of Farmer Mac’s preferred stock shall be paid in full at the par value of that preferred stock, plus all accrued dividends, before the holders of any class of common shares (including Class B voting common stock) receive any payment. Shares of Class B voting common stock have equal liquidation preference to all other classes of Farmer Mac’s common stock and would receive pro rata distribution of any funds remaining after full liquidation of outstanding preferred stock.

–The rights of holders may be modified otherwise than by a vote of a majority or more of the shares outstanding, voting as a class, under the following circumstances:

–Congress may modify Farmer Mac’s charter at any time and in any manner, which could affect the rights of any of Farmer Mac’s securityholders, including holders of Class B voting common stock; and

–Farmer Mac’s charter prescribes that the Board may adopt and amend bylaws not inconsistent with Farmer Mac’s charter or other laws or regulations, which may have the effect of modifying the rights of holders of Class B voting common stock.

–The rights of holders of Class B voting common stock are materially limited or qualified by the rights of holders of Farmer Mac’s outstanding series of preferred stock in dividend payment and liquidation preference (in each case as described above). The rights of holders of Class B voting common stock are otherwise not materially limited or qualified by the rights of any other holders of Farmer Mac’s outstanding securities.

Class C non-voting common stock

–Farmer Mac’s Class C non-voting common stock has a par value of $1.

3

Exhibit 4.9

–The charter does not impose any ownership restrictions on Farmer Mac's Class C non-voting common stock, and shares of this class are freely transferable.  Holders of the Class C non-voting common stock do not vote on the election of directors or any other matter, including any right to a change of control of Farmer Mac.  

–Dividends as may be declared by the Board, in the discretion of the Board, shall be paid by Farmer Mac to holders of the Class C non-voting common stock, subject to:

–the Board’s determination that adequate provision has been made for Farmer Mac’s reserve against guarantee losses prescribed by section 8.10(c)(1) of its charter;

–there being no outstanding obligations of Farmer Mac to the U.S. Treasury Department under section 8.13 of Farmer Mac’s charter; and

–all dividends due on preferred stock have been paid.

–The Class C non-voting common stock does not contain any conversion terms, sinking fund provisions, redemption provisions, or preemption rights, and the holders of these shares do not face liability to further calls or assessment by Farmer Mac for any reason. There are no provisions discriminating against any existing or prospective holder as a result of such holder owning a substantial amount of shares or other securities of Farmer Mac.

–In the event of any liquidation, dissolution, or winding up of the business of Farmer Mac, the holders of all series of Farmer Mac’s preferred stock shall be paid in full at the par value of that preferred stock, plus all accrued dividends, before the holders of any class of common shares (including Class C non-voting common stock) receive any payment. Shares of Class C non-voting common stock have equal liquidation preference to all other classes of Farmer Mac’s common stock and would receive pro rata distribution of any funds remaining after full liquidation of outstanding preferred stock.

–The rights of holders may be modified under the following circumstances:

–Congress may modify Farmer Mac’s charter at any time and in any manner, which could affect the rights of any of Farmer Mac’s securityholders, including holders of Class C non-voting common stock; and

–Farmer Mac’s charter prescribes that the Board may adopt and amend bylaws not inconsistent with Farmer Mac’s charter or other laws or regulations, which may have the effect of modifying the rights of holders of Class C non-voting common stock.

–The rights of holders of Class C non-voting common stock are materially limited or qualified by the rights of holders of Farmer Mac’s outstanding series of preferred stock in dividend payment and liquidation preference (in each case as described above). The rights of holders of Class C non-voting common stock are otherwise not materially limited or qualified by the rights of any other holders of Farmer Mac’s outstanding securities.

4

Exhibit 4.9

6.000% Fixed-to-Floating Rate Non-Cumulative Preferred Stock, Series C

–Farmer Mac’s 6.000% Fixed-to-Floating Non-Cumulative Preferred Stock, Series C (the “Series C Preferred Stock”) has a par value of $25, an initial liquidation preference of $25 per share, and an annualized (non-cumulative) dividend rate of 5.875% from the date of issuance to and including the quarterly payment date on July 17, 2024 and thereafter a floating rate equal to three-month LIBOR plus 3.260%. Each series of outstanding preferred stock (including the Series C Preferred Stock) ranks senior to Farmer Mac’s outstanding classes of common stock.

–The charter does not impose any ownership restrictions on Farmer Mac's Series C Preferred Stock, and shares of this stock are freely transferable.  Holders of the Series C Preferred Stock do not vote on the election of directors or any other matter, including any right to a change of control of Farmer Mac.  

–Dividends as may be declared by the Board, in the discretion of the Board, are paid quarterly to holders of the Series C Preferred Stock. Dividends on the Series C Preferred Stock are non-cumulative, so if the Board has not declared a dividend before the dividend payment date for any dividend period, the dividend will not be paid or accumulate, and Farmer Mac will not be obligated to pay dividends for that dividend period, whether or not dividends on the Series C Preferred Stock are declared for any future dividend period. Farmer Mac may pay dividends on the Series C Preferred Stock without paying dividends on any class or series of stock Farmer Mac may issue in the future that ranks junior to the Series C Preferred Stock. Dividends on the Series C Preferred Stock are also subject to:

–the Board’s determination that adequate provision has been made for Farmer Mac’s reserve against guarantee losses prescribed by section 8.10(c)(1) of its charter; and

–there being no outstanding obligations of Farmer Mac to the U.S. Treasury Department under section 8.13 of Farmer Mac’s charter.

–The Series C Preferred Stock does not contain any conversion terms, sinking fund provisions, or preemption rights, and the holders of these shares do not face liability to further calls or assessment by Farmer Mac for any reason. There are no provisions discriminating against any existing or prospective holder as a result of such holder owning a substantial amount of shares or other securities of Farmer Mac.

–Farmer Mac has the right, but not the obligation, to redeem some or all of the issued and outstanding shares of Series C Preferred Stock on and any time after July 18, 2024, at a price equal to the then-applicable liquidation preference. If Farmer Mac chooses to redeem the Series C Preferred Stock, Farmer Mac will provide notice of the redemption between 30 and 60 days prior to the redemption date, by mail or in any manner permitted by the Depository Trust Company, which holds the shares of Series C Preferred Stock in book-entry form. There are no restrictions on redemption if there is any arrearage in the payment of dividends.

5

Exhibit 4.9

–In the event of any liquidation, dissolution, or winding up of the business of Farmer Mac, the holders of all series of Farmer Mac’s preferred stock shall be paid in full at the par value of that preferred stock, plus all accrued dividends, before the holders of any class of common shares receive any payment. The shares of Series C Preferred Stock have equal liquidation preference to all other classes of Farmer Mac’s preferred stock. If assets available for distribution to Farmer Mac’s stockholders are insufficient to pay in full the aggregate amount of the par value for all shares of all series of Farmer Mac’s preferred stock (including the Series C Preferred Stock), the assets will be distributed to the holders of shares of the Series C Preferred Stock on a pro rata basis with all other shares of Farmer Mac’s outstanding preferred stock.

–The rights of holders may be modified under the following circumstances:

–Congress may modify Farmer Mac’s charter at any time and in any manner, which could affect the rights of any of Farmer Mac’s securityholders, including holders of Series C Preferred Stock; and

–Farmer Mac’s charter prescribes that the Board may adopt and amend bylaws not inconsistent with Farmer Mac’s charter or other laws or regulations, which may have the effect of modifying the rights of holders of Series C Preferred Stock.

–The rights of holders of Series C Preferred Stock are not materially limited or qualified by the rights of any other holders of Farmer Mac’s outstanding securities.

5.700% Non-Cumulative Preferred Stock, Series D

–Farmer Mac’s 5.700% Non-Cumulative Preferred Stock, Series D (the “Series D Preferred Stock”) has a par value of $25, an initial liquidation preference of $25 per share, and an annualized (non-cumulative) dividend rate of 5.700%. Each series of outstanding preferred stock (including the Series D Preferred Stock) ranks senior to Farmer Mac’s outstanding classes of common stock.

–The charter does not impose any ownership restrictions on Farmer Mac's Series D Preferred Stock, and shares of this stock are freely transferable.  Holders of the Series D Preferred Stock do not vote on the election of directors or any other matter, including any right to a change of control of Farmer Mac.  

–Dividends as may be declared by the Board, in the discretion of the Board, are paid quarterly to holders of the Series D Preferred Stock. Dividends on the Series D Preferred Stock are non-cumulative, so if the Board has not declared a dividend before the dividend payment date for any dividend period, the dividend will not be paid or accumulate, and Farmer Mac will not be obligated to pay dividends for that dividend period, whether or not dividends on the Series D Preferred Stock are declared for any future dividend period. Farmer Mac may pay dividends on the Series D Preferred Stock without paying dividends on any class or series of stock Farmer Mac may issue in the future that ranks junior to the Series D Preferred Stock. Dividends on the Series D Preferred Stock are also subject to:

6

Exhibit 4.9

–the Board’s determination that adequate provision has been made for Farmer Mac’s reserve against guarantee losses prescribed by section 8.10(c)(1) of its charter; and

–there being no outstanding obligations of Farmer Mac to the U.S. Treasury Department under section 8.13 of Farmer Mac’s charter.

–The Series D Preferred Stock does not contain any conversion terms, sinking fund provisions, or preemption rights, and the holders of these shares do not face liability to further calls or assessment by Farmer Mac for any reason. There are no provisions discriminating against any existing or prospective holder as a result of such holder owning a substantial amount of shares or other securities of Farmer Mac.

–Farmer Mac has the right, but not the obligation, to redeem some or all of the issued and outstanding shares of Series D Preferred Stock on any scheduled dividend payment date on or after July 17, 2024, at a price equal to the then-applicable liquidation preference. If Farmer Mac chooses to redeem the Series D Preferred Stock, Farmer Mac will provide notice of the redemption between 30 and 60 days prior to the redemption date, by mail or in any manner permitted by the Depository Trust Company, which holds the shares of Series D Preferred Stock in book-entry form. There are no restrictions on redemption if there is any arrearage in the payment of dividends.

–In the event of any liquidation, dissolution, or winding up of the business of Farmer Mac, the holders of all series of Farmer Mac’s preferred stock shall be paid in full at the par value of that preferred stock, plus all accrued dividends, before the holders of any class of common shares receive any payment. The shares of Series D Preferred Stock have equal liquidation preference to all other classes of Farmer Mac’s preferred stock. If assets available for distribution to Farmer Mac’s stockholders are insufficient to pay in full the aggregate amount of the par value for all shares of all series of Farmer Mac’s preferred stock (including the Series D Preferred Stock), the assets will be distributed to the holders of shares of the Series D Preferred Stock on a pro rata basis with all other shares of Farmer Mac’s outstanding preferred stock.

–The rights of holders may be modified under the following circumstances:

–Congress may modify Farmer Mac’s charter at any time and in any manner, which could affect the rights of any of Farmer Mac’s securityholders, including holders of Series D Preferred Stock; and

–Farmer Mac’s charter prescribes that the Board may adopt and amend bylaws not inconsistent with Farmer Mac’s charter or other laws or regulations, which may have the effect of modifying the rights of holders of Series D Preferred Stock.

–The rights of holders of Series D Preferred Stock are not materially limited or qualified by the rights of any other holders of Farmer Mac’s outstanding securities.

5.750% Non-Cumulative Preferred Stock, Series E

–Farmer Mac’s 5.750% Non-Cumulative Preferred Stock, Series E (the “Series E Preferred Stock”) has a par value of $25, an initial liquidation preference of $25 per share, and an

7

Exhibit 4.9

annualized (non-cumulative) dividend rate of 5.750%. Each series of outstanding preferred stock (including the Series E Preferred Stock) ranks senior to Farmer Mac’s outstanding classes of common stock.

–The charter does not impose any ownership restrictions on Farmer Mac's Series E Preferred Stock, and shares of this stock are freely transferable.  Holders of the Series E Preferred Stock do not vote on the election of directors or any other matter, including any right to a change of control of Farmer Mac.  

–Dividends as may be declared by the Board, in the discretion of the Board, are paid quarterly to holders of the Series E Preferred Stock. Dividends on the Series E Preferred Stock are non-cumulative, so if the Board has not declared a dividend before the dividend payment date for any dividend period, the dividend will not be paid or accumulate, and Farmer Mac will not be obligated to pay dividends for that dividend period, whether or not dividends on the Series E Preferred Stock are declared for any future dividend period. Farmer Mac may pay dividends on the Series E Preferred Stock without paying dividends on any class or series of stock Farmer Mac may issue in the future that ranks junior to the Series E Preferred Stock. Dividends on the Series E Preferred Stock are also subject to:

–the Board’s determination that adequate provision has been made for Farmer Mac’s reserve against guarantee losses prescribed by section 8.10(c)(1) of its charter; and

–there being no outstanding obligations of Farmer Mac to the U.S. Treasury Department under section 8.13 of Farmer Mac’s charter.

–The Series E Preferred Stock does not contain any conversion terms, sinking fund provisions, or preemption rights, and the holders of these shares do not face liability to further calls or assessment by Farmer Mac for any reason. There are no provisions discriminating against any existing or prospective holder as a result of such holder owning a substantial amount of shares or other securities of Farmer Mac.

–Farmer Mac has the right, but not the obligation, to redeem some or all of the issued and outstanding shares of Series E Preferred Stock on any scheduled dividend payment date on or after July 17, 2025, at a price equal to the then-applicable liquidation preference. If Farmer Mac chooses to redeem the Series E Preferred Stock, Farmer Mac will provide notice of the redemption between 30 and 60 days prior to the redemption date, by mail or in any manner permitted by the Depository Trust Company, which holds the shares of Series E Preferred Stock in book-entry form. There are no restrictions on redemption if there is any arrearage in the payment of dividends.

–In the event of any liquidation, dissolution, or winding up of the business of Farmer Mac, the holders of all series of Farmer Mac’s preferred stock shall be paid in full at the par value of that preferred stock, plus all accrued dividends, before the holders of any class of common shares receive any payment. The shares of Series E Preferred Stock have equal liquidation preference to all other classes of Farmer Mac’s preferred stock. If assets available for distribution to Farmer Mac’s stockholders are insufficient to pay in full the

8

Exhibit 4.9

aggregate amount of the par value for all shares of all series of Farmer Mac’s preferred stock (including the Series E Preferred Stock), the assets will be distributed to the holders of shares of the Series E Preferred Stock on a pro rata basis with all other shares of Farmer Mac’s outstanding preferred stock.

–The rights of holders may be modified under the following circumstances:

–Congress may modify Farmer Mac’s charter at any time and in any manner, which could affect the rights of any of Farmer Mac’s securityholders, including holders of Series E Preferred Stock; and

–Farmer Mac’s charter prescribes that the Board may adopt and amend bylaws not inconsistent with Farmer Mac’s charter or other laws or regulations, which may have the effect of modifying the rights of holders of Series E Preferred Stock.

The rights of holders of Series E Preferred Stock are not materially limited or qualified by the rights of any other holders of Farmer Mac’s outstanding securities.

5.250% Non-Cumulative Preferred Stock, Series F

–Farmer Mac’s 5.250% Non-Cumulative Preferred Stock, Series F (the “Series F Preferred Stock”) has a par value of $25, an initial liquidation preference of $25 per share, and an annualized (non-cumulative) dividend rate of 5.250%. Each series of outstanding preferred stock (including the Series F Preferred Stock) ranks senior to Farmer Mac’s outstanding classes of common stock.

–The charter does not impose any ownership restrictions on Farmer Mac's Series F Preferred Stock, and shares of this stock are freely transferable.  Holders of the Series F Preferred Stock do not vote on the election of directors or any other matter, including any right to a change of control of Farmer Mac.  

–Dividends as may be declared by the Board, in the discretion of the Board, are paid quarterly to holders of the Series F Preferred Stock. Dividends on the Series F Preferred Stock are non-cumulative, so if the Board has not declared a dividend before the dividend payment date for any dividend period, the dividend will not be paid or accumulate, and Farmer Mac will not be obligated to pay dividends for that dividend period, whether or not dividends on the Series F Preferred Stock are declared for any future dividend period. Farmer Mac may pay dividends on the Series F Preferred Stock without paying dividends on any class or series of stock Farmer Mac may issue in the future that ranks junior to the Series F Preferred Stock. Dividends on the Series F Preferred Stock are also subject to:

–the Board’s determination that adequate provision has been made for Farmer Mac’s reserve against guarantee losses prescribed by section 8.10(c)(1) of its charter; and

–there being no outstanding obligations of Farmer Mac to the U.S. Treasury Department under section 8.13 of Farmer Mac’s charter.

9

Exhibit 4.9

–The Series F Preferred Stock does not contain any conversion terms, sinking fund provisions, or preemption rights, and the holders of these shares do not face liability to further calls or assessment by Farmer Mac for any reason. There are no provisions discriminating against any existing or prospective holder as a result of such holder owning a substantial amount of shares or other securities of Farmer Mac.

–Farmer Mac has the right, but not the obligation, to redeem some or all of the issued and outstanding shares of Series F Preferred Stock on any scheduled dividend payment date on or after October 17, 2025, at a price equal to the then-applicable liquidation preference. If Farmer Mac chooses to redeem the Series F Preferred Stock, Farmer Mac will provide notice of the redemption between 30 and 60 days prior to the redemption date, by mail or in any manner permitted by the Depository Trust Company, which holds the shares of Series F Preferred Stock in book-entry form. There are no restrictions on redemption if there is any arrearage in the payment of dividends.

–In the event of any liquidation, dissolution, or winding up of the business of Farmer Mac, the holders of all series of Farmer Mac’s preferred stock shall be paid in full at the par value of that preferred stock, plus all accrued dividends, before the holders of any class of common shares receive any payment. The shares of Series F Preferred Stock have equal liquidation preference to all other classes of Farmer Mac’s preferred stock. If assets available for distribution to Farmer Mac’s stockholders are insufficient to pay in full the aggregate amount of the par value for all shares of all series of Farmer Mac’s preferred stock (including the Series F Preferred Stock), the assets will be distributed to the holders of shares of the Series F Preferred Stock on a pro rata basis with all other shares of Farmer Mac’s outstanding preferred stock.

–The rights of holders may be modified under the following circumstances:

–Congress may modify Farmer Mac’s charter at any time and in any manner, which could affect the rights of any of Farmer Mac’s securityholders, including holders of Series F Preferred Stock; and

–Farmer Mac’s charter prescribes that the Board may adopt and amend bylaws not inconsistent with Farmer Mac’s charter or other laws or regulations, which may have the effect of modifying the rights of holders of Series F Preferred Stock.

The rights of holders of Series F Preferred Stock are not materially limited or qualified by the rights of any other holders of Farmer Mac’s outstanding securities.

10

EX-31.1

Exhibit 31.1

CERTIFICATION

I, Bradford T. Nordholm, certify that:

1.I have reviewed this Quarterly Report on Form 10-Q of the Federal Agricultural Mortgage Corporation for the fiscal quarter ended September 30, 2020;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: November 9, 2020

/s/ Bradford T. Nordholm

Bradford T. Nordholm

Chief Executive Officer

EX-31.2

Exhibit 31.2

CERTIFICATION

I, Aparna Ramesh, certify that:

1.I have reviewed this Quarterly Report on Form 10-Q of the Federal Agricultural Mortgage Corporation for the fiscal quarter ended September 30, 2020;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: November 9, 2020

/s/ Aparna Ramesh

Aparna Ramesh

Chief Financial Officer

EX-32

Exhibit 32

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report on Form 10-Q of the Federal Agricultural Mortgage Corporation (the “Corporation”) for the quarterly period ended September 30, 2020 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), the undersigned, Bradford T. Nordholm, Chief Executive Officer of the Corporation, and Aparna Ramesh, Chief Financial Officer of the Corporation, each hereby certifies pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to their knowledge:

(1)The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Corporation.

/s/ Bradford T. Nordholm
Bradford T. Nordholm
Chief Executive Officer
/s/ Aparna Ramesh
Aparna Ramesh
Chief Financial Officer
Date:	November 9, 2020

XML

COVER PAGE - shares	9 Months Ended
	Sep. 30, 2020	Nov. 02, 2020
Entity Information [Line Items]
Document Type	10-Q
Document Period End Date	Sep. 30, 2020
Entity File Number	001-14951
Entity Registrant Name	FEDERAL AGRICULTURAL MORTGAGE CORPORATION
Entity Incorporation, State or Country Code	X1
Entity Tax Identification Number	52-1578738
Entity Address, Address Line One	1999 K Street, N.W., 4th Floor,
Entity Address, City or Town	Washington,
Entity Address, State or Province	DC
Entity Address, Postal Zip Code	20006
City Area Code	(202)
Local Phone Number	872-7700
Title of 12(g) Security	Class B voting common stock
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Document Quarterly Report	true
Document Transition Report	false
Entity Central Index Key	0000845877
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q3
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Class A voting common stock
Entity Information [Line Items]
Title of 12(b) Security	Class A voting common stock
Trading Symbol	AGM.A
Security Exchange Name	NYSE
Entity Common Stock, Shares Outstanding		1,030,780
Class C non-voting common stock
Entity Information [Line Items]
Title of 12(b) Security	Class C non-voting common stock
Trading Symbol	AGM
Security Exchange Name	NYSE
Entity Common Stock, Shares Outstanding		9,204,911
6.000% Fixed-to-Floating Rate Non-Cumulative Preferred Stock, Series C
Entity Information [Line Items]
Title of 12(b) Security	6.000% Fixed-to-Floating Rate Non-Cumulative Preferred Stock, Series C
Trading Symbol	AGM.PRC
Security Exchange Name	NYSE
5.700% Non-Cumulative Preferred Stock, Series D
Entity Information [Line Items]
Title of 12(b) Security	5.700% Non-Cumulative Preferred Stock, Series D
Trading Symbol	AGM.PRD
Security Exchange Name	NYSE
5.750% Non-Cumulative Preferred Stock, Series E
Entity Information [Line Items]
Title of 12(b) Security	5.750% Non-Cumulative Preferred Stock, Series E
Trading Symbol	AGM.PRE
Security Exchange Name	NYSE
5.250% Non-Cumulative Preferred Stock, Series F
Entity Information [Line Items]
Title of 12(b) Security	5.250% Non-Cumulative Preferred Stock, Series F
Trading Symbol	AGM.PRF
Security Exchange Name	NYSE
Common Class B, Voting
Entity Information [Line Items]
Entity Common Stock, Shares Outstanding		500,301

XML

CONSOLIDATED BALANCE SHEETS - USD ($)	Sep. 30, 2020	Dec. 31, 2019
Assets:
Cash and cash equivalents	$ 910,592,000	$ 604,381,000
Loans:
Loans held for sale, at lower of cost or fair value	20,000,000	0
Loans held for investment, at amortized cost	6,825,061,000	5,390,977,000
Loans held for investment in consolidated trusts, at amortized cost	1,276,407,000	1,600,917,000
Allowance for losses	(15,821,000)	(10,454,000)
Total loans, net of allowance	8,105,647,000	6,981,440,000
Financial derivatives, at fair value	12,837,000	10,519,000
Interest receivable (includes $11,525 and $20,568, respectively, related to consolidated trusts)	153,170,000	199,195,000
Guarantee and commitment fees receivable	36,664,000	38,442,000
Deferred tax asset, net	29,288,000	16,510,000
Prepaid expenses and other assets	43,531,000	22,463,000
Total Assets	23,998,837,000	21,709,374,000
Liabilities:
Notes payable	21,589,285,000	19,098,648,000
Debt securities of consolidated trusts held by third parties	1,292,416,000	1,616,504,000
Financial derivatives, at fair value	37,357,000	27,042,000
Accrued interest payable (includes $9,353 and $18,018, respectively, related to consolidated trusts)	92,648,000	106,959,000
Guarantee and commitment obligation	35,140,000	36,700,000
Accounts payable and accrued expenses	18,078,000	22,081,000
Reserve for losses	3,568,000	2,164,000
Total Liabilities	23,068,492,000	20,910,098,000
Commitments and Contingencies
Common stock:
Additional paid-in capital	121,525,000	119,304,000
Accumulated other comprehensive loss, net of tax	(53,837,000)	(16,161,000)
Retained earnings	488,717,000	457,047,000
Total Equity	930,345,000	799,276,000
Total Liabilities and Equity	23,998,837,000	21,709,374,000
Series A Preferred Stock
Preferred stock:
Preferred stock	0	58,333,000
Series C Preferred Stock
Preferred stock:
Preferred stock	73,382,000	73,382,000
Series D Preferred Stock
Preferred stock:
Preferred stock	96,659,000	96,659,000
Series E Preferred Stock
Preferred stock:
Preferred stock	77,003,000	0
Series F Preferred Stock
Preferred stock:
Preferred stock	116,160,000	0
Class A voting common stock
Common stock:
Common Stock	1,031,000	1,031,000
Common Class B, Voting
Common stock:
Common Stock	500,000	500,000
Class C non-voting common stock
Common stock:
Common Stock	9,205,000	9,181,000
Investment securities
Assets:
Available-for-sale, at fair value	3,532,190,000	2,959,843,000
Held-to-maturity, at amortized cost	45,032,000	45,032,000
Total Securities	3,577,222,000	3,004,875,000
Farmer Mac Guaranteed Securities:
Assets:
Available-for-sale, at fair value	7,511,638,000	7,143,025,000
Held-to-maturity, at amortized cost	1,200,570,000	1,447,451,000
Total Securities	8,712,208,000	8,590,476,000
USDA Securities:
Assets:
Held-to-maturity, at amortized cost	2,410,848,000	2,232,160,000
Trading, at fair value	6,830,000	8,913,000
Total Securities	$ 2,417,678,000	$ 2,241,073,000

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CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($)	Sep. 30, 2020	Dec. 31, 2019
Interest receivable - consolidated trusts amount	$ 153,170,000	$ 199,195,000
Accrued interest payable - consolidated trusts amount	92,648,000	106,959,000
Available-for-Sale Securities
Amortized cost of available-for-sale investment securities	3,522,674,000	2,961,430,000
Farmer Mac Guaranteed Securities:
Amortized cost of available-for-sale investment securities	7,150,606,000	7,016,971,000
Variable Interest Entity, Primary Beneficiary
Interest receivable - consolidated trusts amount	11,525,000	20,568,000
Accrued interest payable - consolidated trusts amount	$ 9,353,000	$ 18,018,000
Series A Preferred Stock
Preferred stock, par value (in dollars per share)	$ 25	$ 25
Preferred stock, shares authorized (in shares)	2,400,000	2,400,000
Preferred stock, shares issued (in shares)	2,400,000	2,400,000
Preferred stock, shares outstanding (in shares)	2,400,000	2,400,000
Preferred stock, redemption amount	$ 60,000,000
Series C Preferred Stock
Preferred stock, par value (in dollars per share)	$ 25	$ 25
Preferred stock, shares authorized (in shares)	3,000,000	3,000,000
Preferred stock, shares issued (in shares)	3,000,000	3,000,000
Preferred stock, shares outstanding (in shares)	3,000,000	3,000,000
Series D Preferred Stock
Preferred stock, par value (in dollars per share)	$ 25	$ 25
Preferred stock, shares authorized (in shares)	4,000,000	4,000,000
Preferred stock, shares issued (in shares)	4,000,000	4,000,000
Preferred stock, shares outstanding (in shares)	4,000,000	4,000,000
Series E Preferred Stock
Preferred stock, par value (in dollars per share)	$ 25	$ 25
Preferred stock, shares authorized (in shares)	3,180,000	3,180,000
Preferred stock, shares issued (in shares)	3,180,000	3,180,000
Preferred stock, shares outstanding (in shares)	3,180,000	3,180,000
Series F Preferred Stock
Preferred stock, par value (in dollars per share)	$ 25	$ 25
Preferred stock, shares authorized (in shares)	4,800,000	4,800,000
Preferred stock, shares issued (in shares)	4,800,000	4,800,000
Preferred stock, shares outstanding (in shares)	4,800,000	4,800,000
Class A voting common stock
Common stock, par value (in dollars per share)	$ 1	$ 1
Common stock, shares outstanding (in shares)	1,030,780	1,030,780
Common Class B, Voting
Common stock, par value (in dollars per share)	$ 1	$ 1
Common stock, shares outstanding (in shares)	500,301	500,301
Class C non-voting common stock
Common stock, par value (in dollars per share)	$ 1	$ 1
Common stock, shares outstanding (in shares)	9,204,724	9,180,744

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CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Interest income:
Investments and cash equivalents	$ 7,096	$ 22,855	$ 35,236	$ 61,718
Farmer Mac Guaranteed Securities and USDA Securities	45,335	81,649	178,644	252,629
Loans	56,204	56,992	172,230	167,792
Total interest income	108,635	161,496	386,110	482,139
Total interest expense	63,974	121,384	251,789	358,374
Net interest income	44,661	40,112	134,321	123,765
Provision for losses	(653)	(760)	(4,542)	(1,074)
Net interest income after provision for losses	44,008	39,352	129,779	122,691
Non-interest income/(expense):
Guarantee and commitment fees	3,159	3,349	9,495	10,265
(Losses)/gains on financial derivatives	(564)	(7,360)	(3,339)	1,193
(Losses)/gains on trading securities	(258)	49	(173)	154
Gains on sale of real estate owned	0	0	485	0
(Provision)/release of reserve for losses	(547)	137	(540)	424
Other income	594	530	2,639	1,378
Non-interest income/(expense)	2,384	(3,295)	8,567	13,414
Operating expenses:
Compensation and employee benefits	8,791	7,654	27,005	22,030
General and administrative	5,044	5,253	15,702	14,538
Regulatory fees	725	688	2,175	2,063
Real estate owned operating costs, net	0	0	0	64
Operating expenses	14,560	13,595	44,882	38,695
Income before income taxes	31,832	22,462	93,464	97,410
Income tax expense	6,340	4,629	19,516	20,362
Net income	25,492	17,833	73,948	77,048
Preferred stock dividends	(5,166)	(3,427)	(12,536)	(10,508)
Loss on retirement of preferred stock	(1,667)	0	(1,667)	(1,956)
Net income attributable to common stockholders	$ 18,659	$ 14,406	$ 59,745	$ 64,584
Earnings per common share:
Basic earnings per common share (in dollars per share)	$ 1.74	$ 1.34	$ 5.57	$ 6.04
Diluted earnings per common share (in dollars per share)	$ 1.73	$ 1.33	$ 5.54	$ 5.99

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CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Statement of Comprehensive Income [Abstract]
Net income	$ 25,492	$ 17,833	$ 73,948	$ 77,048
Other comprehensive income/(loss) before taxes:
Net unrealized gains/(losses) on available-for-sale securities	47,235	(24,925)	(9,554)	(50,272)
Net changes in held-to-maturity securities	(2,523)	(6,543)	(10,707)	(13,406)
Net unrealized gains/(losses) on cash flow hedges	2,959	(6,736)	(27,429)	(22,373)
Other comprehensive income/(loss) before tax	47,671	(38,204)	(47,690)	(86,051)
Income tax (expense)/benefit related to other comprehensive income/(loss)	(10,011)	8,023	10,014	18,071
Other comprehensive income/(loss) net of tax	37,660	(30,181)	(37,676)	(67,980)
Comprehensive income/(loss)	$ 63,152	$ (12,348)	$ 36,272	$ 9,068

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CONSOLIDATED STATEMENTS OF EQUITY - USD ($) shares in Thousands, $ in Thousands	Total	Cumulative Effect, Period of Adoption, Adjustment	Cumulative Effect, Period of Adoption, Adjusted Balance	Series F Preferred Stock	Series A Preferred Stock	Class C non-voting common stock	Series D Preferred Stock	Series B Preferred Stock	Preferred Stock	Preferred Stock Cumulative Effect, Period of Adoption, Adjusted Balance	Preferred Stock Series E Preferred Stock	Preferred Stock Series F Preferred Stock	Preferred Stock Series A Preferred Stock	Preferred Stock Series D Preferred Stock	Preferred Stock Series B Preferred Stock	Common Stock	Common Stock Cumulative Effect, Period of Adoption, Adjusted Balance	Common Stock Class C non-voting common stock	Additional Paid-in Capital	Additional Paid-in Capital Cumulative Effect, Period of Adoption, Adjusted Balance	Additional Paid-in Capital Class C non-voting common stock	Accumulated Other Comprehensive Income (Loss)	Accumulated Other Comprehensive Income (Loss) Cumulative Effect, Period of Adoption, Adjusted Balance	Retained Earnings	Retained Earnings Cumulative Effect, Period of Adoption, Adjustment	Retained Earnings Cumulative Effect, Period of Adoption, Adjusted Balance	Retained Earnings Class C non-voting common stock
Beginning balance ( in shares) at Dec. 31, 2018									8,400							10,669
Beginning Balance at Dec. 31, 2018	$ 752,557								$ 204,759							$ 10,669			$ 118,822			$ 24,956		$ 393,351
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	25,170																							25,170
Other comprehensive income, net of tax	(3,702)																					(3,702)
Cash dividends, preferred stock	(3,296)																							(3,296)
Cash dividends, common stock	(7,470)																							(7,470)
Issuance of stock (in shares)																		20
Issuance of stock						$ 23												$ 20			$ 3
Stock-based compensation cost	724																		724
Other stock-based award activity	(708)																		(708)
Ending balance (in shares) at Mar. 31, 2019									8,400							10,689
Ending balance at Mar. 31, 2019	763,298								$ 204,759							$ 10,689			118,841			21,254		407,755
Beginning balance ( in shares) at Dec. 31, 2018									8,400							10,669
Beginning Balance at Dec. 31, 2018	752,557								$ 204,759							$ 10,669			118,822			24,956		393,351
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	77,048
Other comprehensive income, net of tax	(67,980)
Loss on retirement of preferred stock	(1,956)
Ending balance (in shares) at Sep. 30, 2019									9,400							10,710
Ending balance at Sep. 30, 2019	750,259								$ 228,374							$ 10,710			118,720			(43,024)		435,479
Beginning balance ( in shares) at Mar. 31, 2019									8,400							10,689
Beginning Balance at Mar. 31, 2019	763,298								$ 204,759							$ 10,689			118,841			21,254		407,755
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	34,045																							34,045
Other comprehensive income, net of tax	(34,097)																					(34,097)
Cash dividends, preferred stock	(3,785)																							(3,785)
Cash dividends, common stock	(7,490)																							(7,490)
Issuance of stock (in shares)														4,000				11
Issuance of stock						14	$ 96,659							$ 96,659				$ 11			3
Redemption of preferred stock (in shares)															(3,000)
Redemption of preferred stock								$ (73,044)							$ (73,044)
Loss on retirement of preferred stock	(1,956)																							(1,956)
Stock-based compensation cost	533																		533
Other stock-based award activity	(435)																		(435)
Ending balance (in shares) at Jun. 30, 2019									9,400							10,700
Ending balance at Jun. 30, 2019	773,742								$ 228,374							$ 10,700			118,942			(12,843)		428,569
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	17,833																							17,833
Other comprehensive income, net of tax	(30,181)																					(30,181)
Cash dividends, preferred stock	(3,427)																							(3,427)
Cash dividends, common stock	(7,496)																							(7,496)
Issuance of stock (in shares)																		10
Issuance of stock						29												$ 10			19
Loss on retirement of preferred stock	0
Stock-based compensation cost	407																		407
Other stock-based award activity	(648)																		(648)
Ending balance (in shares) at Sep. 30, 2019									9,400							10,710
Ending balance at Sep. 30, 2019	750,259								$ 228,374							$ 10,710			118,720			(43,024)		435,479
Beginning balance ( in shares) at Dec. 31, 2019									9,400	9,400						10,712	10,712
Beginning Balance at Dec. 31, 2019	799,276	$ (2,099)	$ 797,177						$ 228,374	$ 228,374						$ 10,712	$ 10,712		119,304	$ 119,304		(16,161)	$ (16,161)	457,047	$ (2,099)	$ 454,948
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	12,830																							12,830
Other comprehensive income, net of tax	(105,276)																					(105,276)
Cash dividends, preferred stock	(3,431)																							(3,431)
Cash dividends, common stock	(8,571)																							(8,571)
Issuance of stock (in shares)																		15
Issuance of stock						34												$ 15			19
Repurchase of Class C Common Stock (in shares)																		(4)
Repurchase of Class C Common Stock						(235)												$ (4)									$ (231)
Stock-based compensation cost	1,293																		1,293
Other stock-based award activity	(204)																		(204)
Ending balance (in shares) at Mar. 31, 2020									9,400							10,723
Ending balance at Mar. 31, 2020	693,617								$ 228,374							$ 10,723			120,412			(121,437)		455,545
Beginning balance ( in shares) at Dec. 31, 2019									9,400	9,400						10,712	10,712
Beginning Balance at Dec. 31, 2019	799,276	$ (2,099)	$ 797,177						$ 228,374	$ 228,374						$ 10,712	$ 10,712		119,304	$ 119,304		(16,161)	$ (16,161)	457,047	$ (2,099)	$ 454,948
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	73,948
Other comprehensive income, net of tax	(37,676)
Loss on retirement of preferred stock	(1,667)
Ending balance (in shares) at Sep. 30, 2020									14,980							10,736
Ending balance at Sep. 30, 2020	930,345								$ 363,204							$ 10,736			121,525			(53,837)		488,717
Beginning balance ( in shares) at Mar. 31, 2020									9,400							10,723
Beginning Balance at Mar. 31, 2020	693,617								$ 228,374							$ 10,723			120,412			(121,437)		455,545
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	35,626																							35,626
Other comprehensive income, net of tax	29,940																					29,940
Cash dividends, preferred stock	(3,939)																							(3,939)
Cash dividends, common stock	(8,585)																							(8,585)
Issuance of stock (in shares)											3,180							10
Issuance of stock	77,003					27					$ 77,003							$ 10			17
Stock-based compensation cost	719																		719
Other stock-based award activity	(292)																		(292)
Ending balance (in shares) at Jun. 30, 2020									12,580							10,733
Ending balance at Jun. 30, 2020	824,116								$ 305,377							$ 10,733			120,856			(91,497)		478,647
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	25,492																							25,492
Other comprehensive income, net of tax	37,660																					37,660
Cash dividends, preferred stock	(5,166)																							(5,166)
Cash dividends, common stock	(8,589)																							(8,589)
Issuance of stock (in shares)												4,800						3
Issuance of stock				$ 116,160		$ 11						$ 116,160						$ 3			$ 8
Redemption of preferred stock (in shares)													(2,400)
Redemption of preferred stock					$ (58,333)								$ (58,333)
Loss on retirement of preferred stock	(1,667)																							(1,667)
Stock-based compensation cost	753																		753
Other stock-based award activity	(92)																		(92)
Ending balance (in shares) at Sep. 30, 2020									14,980							10,736
Ending balance at Sep. 30, 2020	$ 930,345								$ 363,204							$ 10,736			$ 121,525			$ (53,837)		$ 488,717

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CONSOLIDATED STATEMENTS OF EQUITY (Parenthetical) - $ / shares	3 Months Ended
	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019
Statement of Stockholders' Equity [Abstract]
Common stock dividends per common share (in dollars per share)	$ 0.80	$ 0.80	$ 0.80	$ 0.70	$ 0.70	$ 0.70

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CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Cash flows from operating activities:
Net income	$ 73,948	$ 77,048
Adjustments to reconcile net income to net cash provided by operating activities:
Net amortization of deferred gains, premiums, and discounts on loans, investments, Farmer Mac Guaranteed Securities, and USDA Securities	3,800	(8,032)
Amortization of debt premiums, discounts, and issuance costs	18,502	37,794
Net change in fair value of trading securities, hedged assets, and financial derivatives	(342,380)	(326,537)
Gain on sale of real estate owned	(485)	0
Total provision for allowance for losses	5,083	650
Excess tax benefits related to stock-based awards	(421)	442
Deferred income taxes	(2,763)	637
Stock-based compensation expense	2,765	1,664
Purchases of loans held for sale	(59,150)	0
Proceeds from the sale of loans held for sale	15,000	0
Proceeds from repayment of loans purchased as held for sale	54,661	44,857
Net change in:
Interest receivable	44,706	21,395
Guarantee and commitment fees receivable	218	(4)
Other assets	(20,169)	1,875
Accrued interest payable	(14,311)	7,597
Other liabilities	(4,412)	2,538
Net cash used in operating activities	(225,408)	(138,076)
Cash flows from investing activities:
Purchases of loans held for investment	(2,245,958)	(1,528,789)
Purchases of defaulted loans	(6,272)	(469)
Proceeds from repayment of loans purchased as held for investment	1,272,603	568,280
Proceeds from sale of Farmer Mac Guaranteed Securities	64,612	199,396
Proceeds from sale of real estate owned	2,191	0
Net cash used in investing activities	(1,550,837)	(2,062,969)
Cash flows from financing activities:
Payments to third parties on debt securities of consolidated trusts	(431,093)	(143,491)
Proceeds from common stock issuance	44	25
Retirement of preferred stock	(60,000)	(75,000)
Proceeds from preferred stock issuance, net of stock issuance costs	193,163	96,659
Tax payments related to share-based awards	(560)	(1,750)
Purchases of common stock	(235)	0
Dividends paid on common and preferred stock	(37,369)	(32,964)
Net cash provided by financing activities	2,082,456	2,363,730
Net change in cash and cash equivalents	306,211	162,685
Cash and cash equivalents at beginning of period	604,381	425,256
Cash and cash equivalents at end of period	910,592	587,941
Non-cash activity:
Loans acquired and securitized as Farmer Mac Guaranteed Securities	64,612	199,396
Consolidation of Farmer Mac Guaranteed Securities from off-balance sheet to loans held for investment in consolidated trusts and to debt securities of consolidated trusts held by third parties	64,612	141,543
Reclassification of defaulted loans from loans held for investment in consolidated trusts to loans held for investment	42,393	5,392
Reclassification of loans held for sale to loans held for investment	24,150	0
Capitalized interest	937	0
Purchases of securities - traded, not yet settled	0	8,680
Medium-term Notes
Cash flows from financing activities:
Proceeds from issuance of debt	10,561,149	7,632,425
Payments to redeem notes	(8,293,765)	(5,646,107)
Notes Payable to Banks
Cash flows from financing activities:
Proceeds from issuance of debt	51,936,788	47,036,038
Payments to redeem notes	(51,785,666)	(46,502,105)
Available-for-sale securities
Cash flows from investing activities:
Purchases of securities	(2,177,560)	(1,871,957)
Proceeds from repayment of securities	1,612,075	991,423
Farmer Mac Guaranteed Securities and USDA Securities
Cash flows from investing activities:
Purchases of securities	(1,798,028)	(2,167,801)
Proceeds from repayment of securities	$ 1,725,500	$ 1,746,948

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Summary of Significant Accounting Policies

9 Months Ended

Sep. 30, 2020

Accounting Policies [Abstract]

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The interim unaudited consolidated financial statements of the Federal Agricultural Mortgage Corporation ("Farmer Mac") and subsidiaries have been prepared pursuant to the rules and regulations of the U.S. Securities and Exchange Commission ("SEC"). These interim unaudited consolidated financial statements reflect all normal and recurring adjustments that are, in the opinion of management, necessary to present a fair statement of the financial position and the results of operations and cash flows of Farmer Mac and subsidiaries for the interim periods presented. Certain information and footnote disclosures normally included in the annual consolidated financial statements have been omitted as permitted by SEC rules and regulations. The December 31, 2019 consolidated balance sheet presented in this report has been derived from Farmer Mac's audited 2019 consolidated financial statements. Management believes that the disclosures are adequate to present fairly the consolidated financial statements as of the dates and for the periods presented. These interim unaudited consolidated financial statements should be read in conjunction with the 2019 consolidated financial statements of Farmer Mac and subsidiaries included in Farmer Mac's Annual Report on Form 10-K for the year ended December 31, 2019, as filed with the SEC on February 25, 2020. Results for interim periods are not necessarily indicative of those that may be expected for the fiscal year. Presented below are Farmer Mac's significant accounting policies that contain updated information for the three and nine months ended September 30, 2020.

Principles of Consolidation

The consolidated financial statements include the accounts of Farmer Mac and its two subsidiaries during the year: (1) Farmer Mac Mortgage Securities Corporation ("FMMSC"), whose principal activities are to facilitate the purchase and issuance of Farmer Mac Guaranteed Securities; and (2) Farmer Mac II LLC, whose principal activity is the operation of substantially all of the business related to the USDA Guarantees line of business – primarily the acquisition of USDA Securities. The consolidated financial statements also include the accounts of Variable Interest Entities ("VIEs") in which Farmer Mac determined itself to be the primary beneficiary.

The following tables present, by line of business, details about the consolidation of VIEs:

Table 1.1

	Consolidation of Variable Interest Entities
	As of September 30, 2020
	Farm & Ranch		USDA Guarantees		Corporate		Total
	(in thousands)
On-Balance Sheet:
Consolidated VIEs:
Loans held for investment in consolidated trusts, at amortized cost	$	1,276,407	$	—	$	—	$	1,276,407
Debt securities of consolidated trusts held by third parties (1)	1,292,416		—		—		1,292,416
Unconsolidated VIEs:
Farmer Mac Guaranteed Securities:
Carrying value (2)	—		36,505		—		36,505
Maximum exposure to loss (3)	—		36,414		—		36,414
Investment securities:
Carrying value (4)	—		—		1,835,688		1,835,688
Maximum exposure to loss (3) (4)	—		—		1,829,604		1,829,604
Off-Balance Sheet:
Unconsolidated VIEs:
Farmer Mac Guaranteed Securities:
Maximum exposure to loss (3) (5)	85,767		310,682		—		396,449

(1)Includes borrower remittances of $16.0 million. The borrower remittances had not been passed through to third party investors as of September 30, 2020.

(2)Includes $0.1 million of unamortized premiums and discounts and fair value adjustments related to the USDA Guarantees line of business.

(3)Farmer Mac uses unpaid principal balance and outstanding face amount of investment securities to represent maximum exposure to loss.

(4)Includes auction-rate certificates, asset-backed securities, and government-sponsored enterprise ("GSE")-guaranteed mortgage-backed securities.

(5)The amount under the Farm & Ranch line of business relates to unconsolidated trusts where Farmer Mac determined it was not the primary beneficiary due to shared power with an unrelated party.

	Consolidation of Variable Interest Entities
	As of December 31, 2019
	Farm & Ranch		USDA Guarantees		Corporate		Total
	(in thousands)
On-Balance Sheet:
Consolidated VIEs:
Loans held for investment in consolidated trusts, at amortized cost	$	1,600,917	$	—	$	—	$	1,600,917
Debt securities of consolidated trusts held by third parties (1)	1,616,504		—		—		1,616,504
Unconsolidated VIEs:
Farmer Mac Guaranteed Securities:
Carrying value (2)	—		32,041		—		32,041
Maximum exposure to loss (3)	—		31,887		—		31,887
Investment securities:
Carrying value (4)	—		—		1,117,203		1,117,203
Maximum exposure to loss (3) (4)	—		—		1,120,765		1,120,765
Off-Balance Sheet:
Unconsolidated VIEs:
Farmer Mac Guaranteed Securities:
Maximum exposure to loss (3) (5)	107,322		389,216		—		496,538

(1)Includes borrower remittances of $15.6 million. The borrower remittances had not been passed through to third party investors as of December 31, 2019.

(2)Includes $0.2 million of unamortized premiums and discounts and fair value adjustments related to the USDA Guarantees line of business.

(3)Farmer Mac uses unpaid principal balance and outstanding face amount of investment securities to represent maximum exposure to loss.

(4)Includes auction-rate certificates, asset-backed securities, and government-sponsored enterprise ("GSE")-guaranteed mortgage-backed securities.

(5)The amount under the Farm & Ranch line of business relates to unconsolidated trusts where Farmer Mac determined it was not the primary beneficiary due to shared power with an unrelated party.

Earnings Per Common Share

Basic earnings per common share ("EPS") is based on the daily weighted-average number of shares of common stock outstanding.  Diluted earnings per common share is based on the daily weighted-average number of shares of common stock outstanding adjusted to include all potentially dilutive stock appreciation rights ("SARs") and unvested restricted stock awards.  The following schedule reconciles basic and diluted EPS for the three and nine months ended September 30, 2020 and 2019:

Table 1.2

	For the Three Months Ended
	September 30, 2020					September 30, 2019
	Net Income		Weighted-Average Shares	$ per Share		Net Income		Weighted-Average Shares	$ per Share
	(in thousands, except per share amounts)
Basic EPS
Net income attributable to common stockholders	$	18,659	10,734	$	1.74	$	14,406	10,706	$	1.34
Effect of dilutive securities(1)
SARs and restricted stock	—		51	(0.01)		—		70	(0.01)
Diluted EPS	$	18,659	10,785	$	1.73	$	14,406	10,776	$	1.33

(1)For the three months ended September 30, 2020 and 2019, SARs and restricted stock of 66,445 and 26,768, respectively, were outstanding but not included in the computation of diluted earnings per share of common stock because they were anti-dilutive. For the three months ended September 30, 2020 and 2019, contingent shares of unvested restricted stock of 12,680 and 8,414, respectively, were outstanding but not included in the computation of diluted earnings per share of common stock because performance conditions had not yet been met.

	For the Nine Months Ended
	September 30, 2020					September 30, 2019
	Net Income		Weighted-Average Shares	$ per Share		Net Income		Weighted-Average Shares	$ per Share
	(in thousands, except per share amounts)
Basic EPS
Net income attributable to common stockholders	$	59,745	10,725	$	5.57	$	64,584	10,691	$	6.04
Effect of dilutive securities(1)
SARs and restricted stock	—		56	(0.03)		—		83	(0.05)
Diluted EPS	$	59,745	10,781	$	5.54	$	64,584	10,774	$	5.99

(1)For the nine months ended September 30, 2020 and 2019, SARs and restricted stock of 78,963 and 48,801, respectively, were outstanding but not included in the computation of diluted earnings per share of common stock because they were anti-dilutive. For the nine months ended September 30, 2020 and 2019, contingent shares of unvested restricted stock of 12,680 and 10,994, respectively, were outstanding but not included in the computation of diluted earnings per share of common stock because performance conditions had not yet been met.

Comprehensive IncomeComprehensive income represents all changes in stockholders' equity except those resulting from investments by or distributions to stockholders, and is comprised of net income and unrealized gains and losses on available-for-sale securities, certain held-to-maturity securities transferred from the available-for-sale classification, and cash flow hedges, net of related taxes.

The following table presents the changes in accumulated other comprehensive income ("AOCI"), net of tax, by component for the three and nine months ended September 30, 2020 and 2019:

Table 1.3

	As of September 30, 2020								As of September 30, 2019
	Available-for-Sale Securities		Held-to-Maturity Securities		Cash Flow Hedges		Total		Available-for-Sale Securities		Held-to-Maturity Securities		Cash Flow Hedges		Total
	(in thousands)
For the Three Months Ended:
Beginning Balance	$	(88,261)	$	26,379	$	(29,615)	$	(91,497)	$	(45,384)	$	38,021	$	(5,480)	$	(12,843)
Other comprehensive income/(loss) before reclassifications	38,099		—		904		39,003		(18,915)		—		(5,071)		(23,986)
Amounts reclassified from AOCI	(783)		(1,993)		1,433		(1,343)		(776)		(5,169)		(250)		(6,195)
Net comprehensive income/(loss)	37,316		(1,993)		2,337		37,660		(19,691)		(5,169)		(5,321)		(30,181)
Ending Balance	$	(50,945)	$	24,386	$	(27,278)	$	(53,837)	$	(65,075)	$	32,852	$	(10,801)	$	(43,024)
For the Nine Months Ended:
Beginning Balance	$	(43,397)	$	32,845	$	(5,609)	$	(16,161)	$	(25,360)	$	43,443	$	6,873	$	24,956
Other comprehensive loss before reclassifications	(5,210)		—		(24,684)		(29,894)		(37,308)		—		(16,679)		(53,987)
Amounts reclassified from AOCI	(2,338)		(8,459)		3,015		(7,782)		(2,407)		(10,591)		(995)		(13,993)
Net comprehensive loss	(7,548)		(8,459)		(21,669)		(37,676)		(39,715)		(10,591)		(17,674)		(67,980)
Ending Balance	$	(50,945)	$	24,386	$	(27,278)	$	(53,837)	$	(65,075)	$	32,852	$	(10,801)	$	(43,024)

The following table presents other comprehensive income activity, the impact on net income of amounts reclassified from each component of AOCI, and the related tax impact for the three and nine months ended September 30, 2020 and 2019:

Table 1.4

	For the Three Months Ended
	September 30, 2020						September 30, 2019
	Before Tax		Provision (Benefit)		After Tax		Before Tax		Provision (Benefit)		After Tax
	(in thousands)
Other comprehensive income:
Available-for-sale-securities:
Unrealized holding gains/(losses) on available-for-sale securities	$	48,226	$	10,127	$	38,099	$	(23,943)	$	(5,028)	$	(18,915)
Less reclassification adjustments included in:
Net interest income(1)	(976)		(205)		(771)		(961)		(202)		(759)
Other income(2)	(15)		(3)		(12)		(21)		(4)		(17)
Total	$	47,235	$	9,919	$	37,316	$	(24,925)	$	(5,234)	$	(19,691)
Held-to-maturity securities:
Less reclassification adjustments included in:
Net interest income(3)	(2,523)		(530)		(1,993)		(6,543)		(1,374)		(5,169)
Total	$	(2,523)	$	(530)	$	(1,993)	$	(6,543)	$	(1,374)	$	(5,169)
Cash flow hedges
Unrealized gains/(losses) on cash flow hedges	$	1,145	$	241	$	904	$	(6,419)	$	(1,348)	$	(5,071)
Less reclassification adjustments included in:
Net interest income(4)	1,814		381		1,433		(317)		(67)		(250)
Total	$	2,959	$	622	$	2,337	$	(6,736)	$	(1,415)	$	(5,321)
Other comprehensive income/(loss)	$	47,671	$	10,011	$	37,660	$	(38,204)	$	(8,023)	$	(30,181)

(1)Relates to the amortization of unrealized gains on hedged items prior to the application of fair value hedge accounting.

(2)Represents amortization of deferred gains related to certain available-for-sale USDA Securities and Farmer Mac Guaranteed USDA Securities.

(3)Relates to the amortization of unrealized gains or losses prior to the reclassification of these securities from available-for-sale to held-to-maturity. The amortization of unrealized gains or losses reported in AOCI for held-to-maturity securities will be offset by the amortization of the premium or discount created from the transfer into held-to-maturity securities, which occurred at fair value. These unrealized gains or losses will be recorded over the remaining life of the security with no impact on future net income.

(4)Relates to the recognition of unrealized gains and losses on cash flow hedges recorded in AOCI.

	For the Nine Months Ended
	September 30, 2020						September 30, 2019
	Before Tax		Provision (Benefit)		After Tax		Before Tax		Provision (Benefit)		After Tax
	(in thousands)
Other comprehensive income:
Available-for-sale-securities:
Unrealized holding losses on available-for-sale securities	$	(6,596)	$	(1,386)	$	(5,210)	$	(47,225)	$	(9,917)	$	(37,308)
Less reclassification adjustments included in:
Net interest income(1)	(2,916)		(612)		(2,304)		(2,870)		(603)		(2,267)
Other income(2)	(42)		(8)		(34)		(177)		(37)		(140)
Total	$	(9,554)	$	(2,006)	$	(7,548)	$	(50,272)	$	(10,557)	$	(39,715)
Held-to-maturity securities:
Less reclassification adjustments included in:
Net interest income(3)	(10,707)		(2,248)		(8,459)		(13,406)		(2,815)		(10,591)
Total	$	(10,707)	$	(2,248)	$	(8,459)	$	(13,406)	$	(2,815)	$	(10,591)
Cash flow hedges
Unrealized losses on cash flow hedges	$	(31,246)	$	(6,562)	$	(24,684)	$	(21,113)	$	(4,434)	$	(16,679)
Less reclassification adjustments included in:
Net interest income(4)	3,817		802		3,015		(1,260)		(265)		(995)
Total	$	(27,429)	$	(5,760)	$	(21,669)	$	(22,373)	$	(4,699)	$	(17,674)
Other comprehensive loss	$	(47,690)	$	(10,014)	$	(37,676)	$	(86,051)	$	(18,071)	$	(67,980)

(1)Relates to the amortization of unrealized gains on hedged items prior to the application of fair value hedge accounting.

(2)Represents amortization of deferred gains related to certain available-for-sale USDA Securities and Farmer Mac Guaranteed USDA Securities.

(3)Relates to the amortization of unrealized gains or losses prior to the reclassification of these securities from available-for-sale to held-to-maturity. The amortization of unrealized gains or losses reported in AOCI for held-to-maturity securities will be offset by the amortization of the premium or discount created from the transfer into held-to-maturity securities, which occurred at fair value. These unrealized gains or losses will be recorded over the remaining life of the security with no impact on future net income.

(4)Relates to the recognition of unrealized gains and losses on cash flow hedges recorded in AOCI.

Allowance for Losses and Reserve for Losses

On January 1, 2020, Farmer Mac adopted Accounting Standards Update 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, ("CECL"). Under CECL, Farmer Mac's allowance for credit losses represents the difference between the carrying amount of the related financial instruments and the present value of their expected cash flows discounted at their effective interest rates, as of the respective balance sheet date. Under CECL, Farmer Mac's reserve for credit losses represents the difference between the outstanding amount of off-balance sheet credit exposures and the present value of their expected cash flows discounted at their effective interest rates.

Farmer Mac maintains an allowance for credit losses to cover current expected credit losses as of the balance sheet date for on-balance sheet investment securities, loans held for investment, and Farmer Mac Guaranteed Securities (collectively referred to as "allowance for losses"). Additionally, Farmer Mac maintains a reserve for credit losses to cover current expected credit losses as of the balance sheet date for off-balance sheet loans underlying LTSPCs and off-balance sheet Farmer Mac Guaranteed Securities (collectively referred to as "reserve for losses"). Both the allowance for losses and reserve for losses are based on historical information and reasonable and supportable forecasts.  

Farmer Mac has never experienced a credit loss in its Rural Utilities line of business. Upon the adoption of CECL, Farmer Mac is now required to measure its expected credit losses for the expected life of all financial instruments, including its Rural Utilities loans. To estimate expected credit losses on these loans, Farmer Mac relies upon industry historical credit loss data from ratings agencies and publicly available information as disclosed in the securities filings of other major lenders who serve the utilities industry.

The allowance for losses increases through periodic provisions for loan losses that are charged against net interest income and the reserve for losses increases through provisions for losses that are charged to non-interest expense. Both the allowance for losses and reserve for losses are decreased by charge-offs for realized losses, net of recoveries.  Releases from the allowance for losses or reserve for losses occur when the estimate of expected credit losses as of the end of a period is less than the estimate at the beginning of the period.

The total allowance for losses consists of the allowance for losses and the reserve for losses.

Charge-offs

Farmer Mac records a charge-off against the allowance for losses principally when a loss has been confirmed through the receipt of assets, generally the underlying collateral, in full satisfaction of the loan. The loss equals the excess of the recorded investment in the loan over the fair value of the collateral less estimated selling costs.

Estimation Methodology

Farmer Mac bases its methodology for determining its current estimate of expected losses on a statistical model, which incorporates credit loss history and reasonable and supportable forecasts. Farmer Mac's estimation methodology is comprised of the following key components:

•An economic model for each portfolio, including Farm & Ranch, Rural Utilities, and Institutional Credit;

•A migration matrix for each portfolio that reasonably predicts the movement of each financial asset among various risk categories over the course of each asset's expected life. The migration matrix forms the basis for our estimate of the probability of default of each financial asset;

•A loss-given-default ("LGD") model that reasonably predicts the amount of loss that Farmer Mac would incur upon the default of each financial asset;

•An economic factor forecast that updates the migration matrix model and the LGD model with current assumptions for the economic indicators that Farmer Mac has determined are most correlated with or relevant to the performance of each portfolio of assets; including Gross Domestic Product ("GDP"), credit spreads, unemployment rates, land values, and commodity prices; and

•A discounted cash flow analysis, which relies upon each of the above model outputs, plus the contractual terms of each financial asset, and the effective interest rate of each financial asset.

Management evaluates these assumptions by considering many relevant factors, including:

•economic conditions;

•geographic and agricultural commodity/product concentrations in the portfolio;

•the credit profile of the portfolio, including risk ratings and financial metrics;

•delinquency trends of the portfolio;

•historical charge-off and recovery activities of the portfolio; and

•other factors to capture current portfolio trends and characteristics that differ from historical experience.

Management believes that its methodology produces a reasonable estimate of expected credit losses, as of the balance sheet date, for the expected life of all of its financial assets.

Allowance for Loss on Available-for-Sale (AFS) Securities

To measure current expected credit losses on impaired AFS securities, Farmer Mac first considers those impaired securities that: 1) Farmer Mac does not intend to sell, and 2) it is not more likely than not that Farmer Mac will be required to sell before recovering its amortized cost basis. In assessing whether a credit loss exists, Farmer Mac compares the present value, discounted at the security's effective interest rate, of cash flows expected to be collected from an impaired AFS debt security to its amortized cost basis. If the present value of cash flows expected to be collected is less than the amortized cost basis of the impaired security, a credit loss exists and Farmer Mac records an allowance for loss for that credit loss. However, the amount of that allowance is limited by the amount that the security’s fair value is less than its amortized cost basis. Accrued interest receivable is recorded separately on the Consolidated Balance Sheet, and the allowance for credit losses excludes uncollectible accrued interest receivable.

Collateral Dependent Assets ("CDAs")

CDAs are loans, loans underlying LTSPCs, or off-balance sheet credit exposures in which the borrower is either in foreclosure or is experiencing financial difficulty and repayment is expected to be provided substantially through the sale or operation of the collateral by Farmer Mac. Farmer Mac estimates the current expected credit loss on CDAs based upon the appraised value of the collateral, the costs to sell it, and any applicable credit protection such as a guarantee.

COVID-19 Payment Deferments

The Coronavirus Aid, Relief, and Economic Security Act ("CARES Act") was signed into law on March 27, 2020. Section 4013 of the CARES Act titled “Temporary Relief from Troubled Debt Restructurings” provides financial institutions the option to temporarily suspend certain requirements under U.S. GAAP related to troubled debt restructurings (“TDRs”) for a limited period of time to account for the effects of the novel coronavirus disease 2019 ("COVID-19"). On April 10, 2020, Farmer Mac’s prudential regulator, the Office of Secondary Market Oversight (OSMO) within the Farm Credit Administration (FCA), issued guidance to Farmer Mac on loan servicing and reporting TDRs for lines of business affected by the COVID-19 outbreak. This guidance was consistent with the guidance provided by other financial regulatory agencies and the Financial Accounting Standards Board that short-term modifications made on a good faith basis in response to the COVID-19 national emergency are not TDRs when the borrower was not past due on loan payments before the March 13, 2020 presidential proclamation declaring the COVID-19 outbreak a national emergency.

During second quarter 2020, Farmer Mac implemented the guidance from FCA by granting up to 6-month payment deferments to borrowers who have been economically impacted by COVID-19. Farmer Mac deems loans under a COVID-19 payment deferment not to be past due and continues to accrue interest on those loans. Furthermore, Farmer Mac does not consider a payment deferment on any such loan to be a troubled debt restructuring. For the purpose of estimating expected credit losses on Farm & Ranch loans held for investment, Farmer Mac does consider payment deferments along with other available credit and economic information that pertains to that portfolio.

New Accounting Standards

Recently Adopted Accounting Guidance

Standard	Description	Date of Adoption	Effect on Consolidated Financial Statements
ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments	This Update required entities to measure all expected credit losses for financial assets held at amortized cost at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts, as well as requiring entities to use forward-looking information to form their credit loss estimates.	January 1, 2020	In first quarter 2020 Farmer Mac adopted the new guidance. The cumulative-effect adjustment to retained earnings as of January 1, 2020 reflected application of the new guidance and did not have a material effect on Farmer Mac's financial position, results of operations, or cash flows. For more information on the transition adjustment see Table 1.5 below.
ASU 2017-08, Receivables - Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities	The amendments in this Update shorten the amortization period for certain callable debt securities held at a premium by requiring the premium to be amortized to the earliest call date. There is no required accounting change for securities held at a discount in this Update.	January 1, 2020	The adoption of this Update did not have a material effect on Farmer Mac's financial position, results of operations, or cash flows.
ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement	The amendments in this Update modify the disclosure requirements on fair value measurements in Topic 820, Fair Value Measurements, including the consideration of costs and benefits. Certain disclosure requirements were either removed, modified, or added.	January 1, 2020	The adoption of this Update did not have a material effect on Farmer Mac's financial position, results of operations, or cash flows.

The following table presents the impact of adopting CECL on January 1, 2020 on our allowance and retained earnings:

Table 1.5

	December 31, 2019		Transition Adjustment		January 1, 2020
	(in thousands)
Allowance:
Farm & Ranch:
Loans	$	10,454	$	(3,909)	$	6,545
Long-term standby purchase commitments and guarantees	2,164		(148)		2,016
Rural Utilities:
Loans	—		5,378		5,378
Long-term standby purchase commitments	—		1,011		1,011
Farmer Mac Guaranteed Securities:
AgVantage	—		315		315
Investment Securities	—		9		9
Total Allowance	$	12,618	$	2,656	$	15,274
Retained Earnings	$	457,047	$	(2,099)	$	454,948

Recently Issued Accounting Guidance, Not Yet Adopted Within Our Consolidated Financial Statements

Standard	Description	Date of Planned Adoption	Effect on Consolidated Financial Statements
ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting	The amendments in this Update provide optional guidance for a limited period of time to ease the potential burden in accounting for reference rate reform on financial reporting. They provide optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met.	The amendments in this Update are effective for all entities as of March 12, 2020 through December 31, 2022.	Farmer Mac is currently evaluating the impact of the discontinuation of LIBOR on the consolidated financial statements and the applicability of the optional guidance provided by this Update.

ReclassificationsCertain reclassifications of prior period information were made to conform to the current period presentation.

XML

Investment Securities

9 Months Ended

Sep. 30, 2020

Investments, Debt and Equity Securities [Abstract]

INVESTMENT SECURITIES

INVESTMENT SECURITIES

The following tables set forth information about Farmer Mac's investment securities as of September 30, 2020 and December 31, 2019:

Table 2.1

	As of September 30, 2020
	Amount Outstanding		Unamortized Premium/(Discount)		Amortized Cost(1)		Allowance for losses(2)		Unrealized Gains		Unrealized Losses		Fair Value
	(in thousands)
Available-for-sale:
Floating rate auction-rate certificates backed by Government guaranteed student loans	$	19,700	$	—	$	19,700	$	(37)	$	—	$	(591)	$	19,072
Floating rate asset-backed securities	9,205		—		9,205		—		—		(4)		9,201
Floating rate Government/GSE guaranteed mortgage-backed securities	2,279,737		33		2,279,770		—		9,415		(3,152)		2,286,033
Fixed rate GSE guaranteed mortgage-backed securities	285		—		285		—		33		—		318
Fixed rate U.S. Treasuries	1,204,308		9,406		1,213,714		—		3,861		(9)		1,217,566
Total available-for-sale	3,513,235		9,439		3,522,674		(37)		13,309		(3,756)		3,532,190
Held-to-maturity:
Floating rate Government/GSE guaranteed mortgage-backed securities(3)	45,032		—		45,032		—		1,153		—		46,185
Total investment securities	$	3,558,267	$	9,439	$	3,567,706	$	(37)	$	14,462	$	(3,756)	$	3,578,375

(1)Amounts presented exclude $5.7 million of accrued interest receivable on investment securities as of September 30, 2020.

(2)Represents the amount of impairment that has resulted from credit-related factors, and therefore was recognized in the consolidated statement of operations as a provision for losses. Amount excludes unrealized losses relating to non-credit factors.

(3)The held-to-maturity investment securities had a weighted average yield of 1.5% as of September 30, 2020.

	As of December 31, 2019
	Amount Outstanding		Unamortized Premium/(Discount)		Amortized Cost		Unrealized Gains		Unrealized Losses		Fair Value
	(in thousands)
Available-for-sale:
Floating rate auction-rate certificates backed by Government guaranteed student loans	$	19,700	$	—	$	19,700	$	—	$	(788)	$	18,912
Floating rate asset-backed securities	11,092		—		11,092		—		(7)		11,085
Floating rate Government/GSE guaranteed mortgage-backed securities	1,633,731		1,174		1,634,905		2,414		(4,736)		1,632,583
Fixed rate GSE guaranteed mortgage-backed securities	315		—		315		25		—		340
Fixed rate U.S. Treasuries	1,295,210		208		1,295,418		1,520		(15)		1,296,923
Total available-for-sale	2,960,048		1,382		2,961,430		3,959		(5,546)		2,959,843
Held-to-maturity:
Floating rate Government/GSE guaranteed mortgage-backed securities(1)	45,032		—		45,032		953		—		45,985
Total investment securities	$	3,005,080	$	1,382	$	3,006,462	$	4,912	$	(5,546)	$	3,005,828

(1)The held-to-maturity investment securities had a weighted average yield of 3.3% as of December 31, 2019.

Farmer Mac did not sell any securities from its available-for-sale investment portfolio during the three and nine months ended September 30, 2020 and 2019.

As of September 30, 2020 and December 31, 2019, unrealized losses on available-for-sale investment securities were as follows:

Table 2.2

	As of September 30, 2020
	Available-for-Sale Securities
	Unrealized loss position for less than 12 months				Unrealized loss position for more than 12 months
	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
	(dollars in thousands)
Floating rate auction-rate certificates backed by Government guaranteed student loans	$	—	$	—	$	19,072	$	(591)
Floating rate asset-backed securities	—		—		6,873		(4)
Floating rate Government/GSE guaranteed mortgage-backed securities	154,452		(464)		403,469		(2,688)
Fixed rate U.S. Treasuries	50,861		(9)		—		—
Total	$	205,313	$	(473)	$	429,414	$	(3,283)
Number of securities in loss position			27				63

	As of December 31, 2019
	Available-for-Sale Securities
	Unrealized loss position for less than 12 months				Unrealized loss position for more than 12 months
	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
	(dollars in thousands)
Floating rate auction-rate certificates backed by Government guaranteed student loans	$	—	$	—	$	18,912	$	(788)
Floating rate asset-backed securities	2,583		(1)		8,502		(6)
Floating rate Government/GSE guaranteed mortgage-backed securities	841,993		(2,244)		436,621		(2,492)
Fixed rate U.S. Treasuries	35,107		(15)		—		—
Total	$	879,683	$	(2,260)	$	464,035	$	(3,286)
Number of securities in loss position			57				62

The unrealized losses presented above are principally due to a general widening of market spreads and changes in the levels of interest rates from the dates of acquisition to September 30, 2020 and December 31, 2019, as applicable. The resulting decrease in fair values reflects an increase in the perceived risk by the financial markets related to those securities. As of both September 30, 2020 and December 31, 2019, all of the investment securities in an unrealized loss position either were backed by the full faith and credit of the U.S. government or had credit ratings of at least "AA+."

Securities in unrealized loss positions for 12 months or longer have a fair value as of September 30, 2020 that is, on average, approximately 99.2% of their amortized cost basis. Farmer Mac believes that all of these unrealized losses are recoverable within a reasonable period of time by way of maturity or changes in credit spreads.

The amortized cost, fair value, and weighted-average yield of available-for-sale investment securities by remaining contractual maturity as of September 30, 2020 are set forth below. Asset-backed and mortgage-backed securities are included based on their final maturities, although the actual maturities may differ due to prepayments of the underlying assets.

Table 2.3

	As of September 30, 2020
	Available-for-Sale Securities
	Amortized Cost		Fair Value		Weighted- Average Yield
	(dollars in thousands)
Due within one year	$	1,142,369	$	1,146,222	2.01%
Due after one year through five years	361,971		362,065		0.76%
Due after five years through ten years	1,129,147		1,134,255		0.67%
Due after ten years	889,187		889,648		0.69%
Total	$	3,522,674	$	3,532,190	1.12%

FARMER MAC GUARANTEED SECURITIES AND USDA SECURITIES

The following tables set forth information about on-balance sheet Farmer Mac Guaranteed Securities and USDA Securities as of September 30, 2020 and December 31, 2019:

Table 3.1

	As of September 30, 2020
	Unpaid Principal Balance		Unamortized Premium/(Discount)		Amortized Cost(1)		Allowance for losses(2)		Unrealized Gains		Unrealized Losses		Fair Value
	(in thousands)
Held-to-maturity:
AgVantage	$	1,164,353	$	(73)	$	1,164,280	$	(216)	$	25,969	$	(99)	$	1,189,934
Farmer Mac Guaranteed USDA Securities	36,414		92		36,506		—		1,026		(1)		37,531
Total Farmer Mac Guaranteed Securities	1,200,767		19		1,200,786		(216)		26,995		(100)		1,227,465
USDA Securities	2,381,416		29,432		2,410,848		—		105,721		(1,398)		2,515,171
Total held-to-maturity	$	3,582,183	$	29,451	$	3,611,634	$	(216)	$	132,716	$	(1,498)	$	3,742,636
Available-for-sale:
AgVantage	$	7,149,082	$	1,524	$	7,150,606	$	(330)	$	394,280	$	(32,918)	$	7,511,638
Trading:
USDA Securities(3)	$	6,617	$	352	$	6,969	$	—	$	10	$	(149)	$	6,830

(1)Amounts presented exclude $32.7 million, $41.1 million, and $0.1 million of accrued interest receivable on available-for-sale, held-to-maturity, and trading securities, respectively, as of September 30, 2020.

(2)Represents the amount of impairment that has resulted from credit-related factors, and therefore was recognized in the statement of financial operations as a provision for losses. Amount excludes unrealized losses relating to non-credit factors.

(3)The trading USDA securities had a weighted average yield of 5.09% as of September 30, 2020.

	As of December 31, 2019
	Unpaid Principal Balance		Unamortized Premium/(Discount)		Amortized Cost		Unrealized Gains		Unrealized Losses		Fair Value
	(in thousands)
Held-to-maturity:
AgVantage	$	1,415,584	$	(174)	$	1,415,410	$	15,300	$	(164)	$	1,430,546
Farmer Mac Guaranteed USDA Securities	31,887		154		32,041		839		—		32,880
Total Farmer Mac Guaranteed Securities	1,447,471		(20)		1,447,451		16,139		(164)		1,463,426
USDA Securities	2,190,671		41,489		2,232,160		54,356		(758)		2,285,758
Total held-to-maturity	$	3,638,142	$	41,469	$	3,679,611	$	70,495	$	(922)	$	3,749,184
Available-for-sale:
AgVantage	$	7,017,095	$	(124)	$	7,016,971	$	161,316	$	(35,262)	$	7,143,025
Trading:
USDA Securities(1)	$	8,400	$	479	$	8,879	$	61	$	(27)	$	8,913

(1)The trading USDA securities had a weighted average yield of 5.20% as of December 31, 2019.

As of September 30, 2020 and December 31, 2019, unrealized losses on held-to-maturity and available-for-sale on-balance sheet Farmer Mac Guaranteed Securities and USDA Securities were as follows:

Table 3.2

	As of September 30, 2020
	Held-to-Maturity and Available-for-Sale Securities
	Unrealized loss position for less than 12 months				Unrealized loss position for more than 12 months
	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
	(in thousands)
Held-to-maturity:
AgVantage	$	49,901	$	(99)	$	—	$	—
Farmer Mac Guaranteed USDA Securities	45		(1)		—		—
USDA Securities	$	—	$	—	$	21,521	$	(1,398)
Total held-to-maturity	$	49,946	$	(100)	$	21,521	$	(1,398)
Available-for-sale:
AgVantage	$	333,544	$	(445)	$	972,161	$	(32,473)

	As of December 31, 2019
	Held-to-Maturity and Available-for-Sale Securities
	Unrealized loss position for less than 12 months				Unrealized loss position for more than 12 months
	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
	(in thousands)
Held-to-maturity:
AgVantage	$	—	$	—	$	301,836	$	(164)
USDA Securities	—		—		27,089		(758)
Total held-to-maturity	$	—	$	—	$	328,925	$	(922)
Available-for-sale:
AgVantage	$	225,239	$	(2,203)	$	1,394,802	$	(33,059)

The unrealized losses presented above are principally due to changes in interest rates from the date of acquisition to September 30, 2020 and December 31, 2019, as applicable. The unrealized losses on the held-to-maturity USDA Securities as of both September 30, 2020 and December 31, 2019 reflect their increased cost basis resulting from their transfer to held-to-maturity as of October 1, 2016.

The credit exposure related to Farmer Mac's USDA Guarantees line of business is covered by the full faith and credit guarantee of the United States of America. As of September 30, 2020, Farmer Mac had executed COVID-19 payment deferments on loans with unpaid principal balances of $83.8 million underlying USDA Securities.

The unrealized losses from AgVantage securities were on 12 and 17 available-for-sale securities as of September 30, 2020 and December 31, 2019, respectively. There were 2 and 4 held-to-maturity AgVantage securities with an unrealized loss as of September 30, 2020 and December 31, 2019,

respectively. As of September 30, 2020 and December 31, 2019, 7 and 13 available-for-sale AgVantage securities, respectively, had been in a loss position for more than 12 months.

During the three and nine months ended September 30, 2020 and 2019, Farmer Mac had no sales of Farmer Mac Guaranteed Securities or USDA Securities and, therefore, Farmer Mac realized no gains or losses.

The amortized cost, fair value, and weighted-average yield of available-for-sale and held-to-maturity Farmer Mac Guaranteed Securities and USDA Securities by remaining contractual maturity as of September 30, 2020 are set forth below. The balances presented are based on their final maturities, although the actual maturities may differ due to prepayments of the underlying assets.

Table 3.3

	As of September 30, 2020
	Available-for-Sale Securities
	Amortized Cost(1)		Fair Value		Weighted- Average Yield
	(dollars in thousands)
Due within one year	$	1,461,551	$	1,468,084	1.48	%
Due after one year through five years	3,102,003		3,214,595		2.24	%
Due after five years through ten years	1,073,248		1,157,450		2.42	%
Due after ten years	1,513,804		1,671,509		2.57	%
Total	$	7,150,606	$	7,511,638	2.18	%

(1)Amounts presented exclude $32.7 million of accrued interest receivable.

	As of September 30, 2020
	Held-to-Maturity Securities
	Amortized Cost(1)		Fair Value		Weighted- Average Yield
	(dollars in thousands)
Due within one year	$	482,593	$	486,460	2.75	%
Due after one year through five years	765,529		790,138		3.15	%
Due after five years through ten years	226,396		234,799		2.96	%
Due after ten years	2,137,116		2,231,239		3.25	%
Total	$	3,611,634	$	3,742,636	3.11	%

(1)Amounts presented exclude $41.1 million of accrued interest receivable.

XML

Farmer Mac Guaranteed Securities and USDA Securities

9 Months Ended

Sep. 30, 2020

Investments, Debt and Equity Securities [Abstract]

FARMER MAC GUARANTEED SECURITES AND USDA SECURITIES

INVESTMENT SECURITIES

The following tables set forth information about Farmer Mac's investment securities as of September 30, 2020 and December 31, 2019:

Table 2.1

	As of September 30, 2020
	Amount Outstanding		Unamortized Premium/(Discount)		Amortized Cost(1)		Allowance for losses(2)		Unrealized Gains		Unrealized Losses		Fair Value
	(in thousands)
Available-for-sale:
Floating rate auction-rate certificates backed by Government guaranteed student loans	$	19,700	$	—	$	19,700	$	(37)	$	—	$	(591)	$	19,072
Floating rate asset-backed securities	9,205		—		9,205		—		—		(4)		9,201
Floating rate Government/GSE guaranteed mortgage-backed securities	2,279,737		33		2,279,770		—		9,415		(3,152)		2,286,033
Fixed rate GSE guaranteed mortgage-backed securities	285		—		285		—		33		—		318
Fixed rate U.S. Treasuries	1,204,308		9,406		1,213,714		—		3,861		(9)		1,217,566
Total available-for-sale	3,513,235		9,439		3,522,674		(37)		13,309		(3,756)		3,532,190
Held-to-maturity:
Floating rate Government/GSE guaranteed mortgage-backed securities(3)	45,032		—		45,032		—		1,153		—		46,185
Total investment securities	$	3,558,267	$	9,439	$	3,567,706	$	(37)	$	14,462	$	(3,756)	$	3,578,375

(1)Amounts presented exclude $5.7 million of accrued interest receivable on investment securities as of September 30, 2020.

(2)Represents the amount of impairment that has resulted from credit-related factors, and therefore was recognized in the consolidated statement of operations as a provision for losses. Amount excludes unrealized losses relating to non-credit factors.

(3)The held-to-maturity investment securities had a weighted average yield of 1.5% as of September 30, 2020.

	As of December 31, 2019
	Amount Outstanding		Unamortized Premium/(Discount)		Amortized Cost		Unrealized Gains		Unrealized Losses		Fair Value
	(in thousands)
Available-for-sale:
Floating rate auction-rate certificates backed by Government guaranteed student loans	$	19,700	$	—	$	19,700	$	—	$	(788)	$	18,912
Floating rate asset-backed securities	11,092		—		11,092		—		(7)		11,085
Floating rate Government/GSE guaranteed mortgage-backed securities	1,633,731		1,174		1,634,905		2,414		(4,736)		1,632,583
Fixed rate GSE guaranteed mortgage-backed securities	315		—		315		25		—		340
Fixed rate U.S. Treasuries	1,295,210		208		1,295,418		1,520		(15)		1,296,923
Total available-for-sale	2,960,048		1,382		2,961,430		3,959		(5,546)		2,959,843
Held-to-maturity:
Floating rate Government/GSE guaranteed mortgage-backed securities(1)	45,032		—		45,032		953		—		45,985
Total investment securities	$	3,005,080	$	1,382	$	3,006,462	$	4,912	$	(5,546)	$	3,005,828

(1)The held-to-maturity investment securities had a weighted average yield of 3.3% as of December 31, 2019.

Farmer Mac did not sell any securities from its available-for-sale investment portfolio during the three and nine months ended September 30, 2020 and 2019.

As of September 30, 2020 and December 31, 2019, unrealized losses on available-for-sale investment securities were as follows:

Table 2.2

	As of September 30, 2020
	Available-for-Sale Securities
	Unrealized loss position for less than 12 months				Unrealized loss position for more than 12 months
	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
	(dollars in thousands)
Floating rate auction-rate certificates backed by Government guaranteed student loans	$	—	$	—	$	19,072	$	(591)
Floating rate asset-backed securities	—		—		6,873		(4)
Floating rate Government/GSE guaranteed mortgage-backed securities	154,452		(464)		403,469		(2,688)
Fixed rate U.S. Treasuries	50,861		(9)		—		—
Total	$	205,313	$	(473)	$	429,414	$	(3,283)
Number of securities in loss position			27				63

	As of December 31, 2019
	Available-for-Sale Securities
	Unrealized loss position for less than 12 months				Unrealized loss position for more than 12 months
	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
	(dollars in thousands)
Floating rate auction-rate certificates backed by Government guaranteed student loans	$	—	$	—	$	18,912	$	(788)
Floating rate asset-backed securities	2,583		(1)		8,502		(6)
Floating rate Government/GSE guaranteed mortgage-backed securities	841,993		(2,244)		436,621		(2,492)
Fixed rate U.S. Treasuries	35,107		(15)		—		—
Total	$	879,683	$	(2,260)	$	464,035	$	(3,286)
Number of securities in loss position			57				62

The unrealized losses presented above are principally due to a general widening of market spreads and changes in the levels of interest rates from the dates of acquisition to September 30, 2020 and December 31, 2019, as applicable. The resulting decrease in fair values reflects an increase in the perceived risk by the financial markets related to those securities. As of both September 30, 2020 and December 31, 2019, all of the investment securities in an unrealized loss position either were backed by the full faith and credit of the U.S. government or had credit ratings of at least "AA+."

Securities in unrealized loss positions for 12 months or longer have a fair value as of September 30, 2020 that is, on average, approximately 99.2% of their amortized cost basis. Farmer Mac believes that all of these unrealized losses are recoverable within a reasonable period of time by way of maturity or changes in credit spreads.

The amortized cost, fair value, and weighted-average yield of available-for-sale investment securities by remaining contractual maturity as of September 30, 2020 are set forth below. Asset-backed and mortgage-backed securities are included based on their final maturities, although the actual maturities may differ due to prepayments of the underlying assets.

Table 2.3

	As of September 30, 2020
	Available-for-Sale Securities
	Amortized Cost		Fair Value		Weighted- Average Yield
	(dollars in thousands)
Due within one year	$	1,142,369	$	1,146,222	2.01%
Due after one year through five years	361,971		362,065		0.76%
Due after five years through ten years	1,129,147		1,134,255		0.67%
Due after ten years	889,187		889,648		0.69%
Total	$	3,522,674	$	3,532,190	1.12%

FARMER MAC GUARANTEED SECURITIES AND USDA SECURITIES

The following tables set forth information about on-balance sheet Farmer Mac Guaranteed Securities and USDA Securities as of September 30, 2020 and December 31, 2019:

Table 3.1

	As of September 30, 2020
	Unpaid Principal Balance		Unamortized Premium/(Discount)		Amortized Cost(1)		Allowance for losses(2)		Unrealized Gains		Unrealized Losses		Fair Value
	(in thousands)
Held-to-maturity:
AgVantage	$	1,164,353	$	(73)	$	1,164,280	$	(216)	$	25,969	$	(99)	$	1,189,934
Farmer Mac Guaranteed USDA Securities	36,414		92		36,506		—		1,026		(1)		37,531
Total Farmer Mac Guaranteed Securities	1,200,767		19		1,200,786		(216)		26,995		(100)		1,227,465
USDA Securities	2,381,416		29,432		2,410,848		—		105,721		(1,398)		2,515,171
Total held-to-maturity	$	3,582,183	$	29,451	$	3,611,634	$	(216)	$	132,716	$	(1,498)	$	3,742,636
Available-for-sale:
AgVantage	$	7,149,082	$	1,524	$	7,150,606	$	(330)	$	394,280	$	(32,918)	$	7,511,638
Trading:
USDA Securities(3)	$	6,617	$	352	$	6,969	$	—	$	10	$	(149)	$	6,830

(1)Amounts presented exclude $32.7 million, $41.1 million, and $0.1 million of accrued interest receivable on available-for-sale, held-to-maturity, and trading securities, respectively, as of September 30, 2020.

(2)Represents the amount of impairment that has resulted from credit-related factors, and therefore was recognized in the statement of financial operations as a provision for losses. Amount excludes unrealized losses relating to non-credit factors.

(3)The trading USDA securities had a weighted average yield of 5.09% as of September 30, 2020.

	As of December 31, 2019
	Unpaid Principal Balance		Unamortized Premium/(Discount)		Amortized Cost		Unrealized Gains		Unrealized Losses		Fair Value
	(in thousands)
Held-to-maturity:
AgVantage	$	1,415,584	$	(174)	$	1,415,410	$	15,300	$	(164)	$	1,430,546
Farmer Mac Guaranteed USDA Securities	31,887		154		32,041		839		—		32,880
Total Farmer Mac Guaranteed Securities	1,447,471		(20)		1,447,451		16,139		(164)		1,463,426
USDA Securities	2,190,671		41,489		2,232,160		54,356		(758)		2,285,758
Total held-to-maturity	$	3,638,142	$	41,469	$	3,679,611	$	70,495	$	(922)	$	3,749,184
Available-for-sale:
AgVantage	$	7,017,095	$	(124)	$	7,016,971	$	161,316	$	(35,262)	$	7,143,025
Trading:
USDA Securities(1)	$	8,400	$	479	$	8,879	$	61	$	(27)	$	8,913

(1)The trading USDA securities had a weighted average yield of 5.20% as of December 31, 2019.

As of September 30, 2020 and December 31, 2019, unrealized losses on held-to-maturity and available-for-sale on-balance sheet Farmer Mac Guaranteed Securities and USDA Securities were as follows:

Table 3.2

	As of September 30, 2020
	Held-to-Maturity and Available-for-Sale Securities
	Unrealized loss position for less than 12 months				Unrealized loss position for more than 12 months
	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
	(in thousands)
Held-to-maturity:
AgVantage	$	49,901	$	(99)	$	—	$	—
Farmer Mac Guaranteed USDA Securities	45		(1)		—		—
USDA Securities	$	—	$	—	$	21,521	$	(1,398)
Total held-to-maturity	$	49,946	$	(100)	$	21,521	$	(1,398)
Available-for-sale:
AgVantage	$	333,544	$	(445)	$	972,161	$	(32,473)

	As of December 31, 2019
	Held-to-Maturity and Available-for-Sale Securities
	Unrealized loss position for less than 12 months				Unrealized loss position for more than 12 months
	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
	(in thousands)
Held-to-maturity:
AgVantage	$	—	$	—	$	301,836	$	(164)
USDA Securities	—		—		27,089		(758)
Total held-to-maturity	$	—	$	—	$	328,925	$	(922)
Available-for-sale:
AgVantage	$	225,239	$	(2,203)	$	1,394,802	$	(33,059)

The unrealized losses presented above are principally due to changes in interest rates from the date of acquisition to September 30, 2020 and December 31, 2019, as applicable. The unrealized losses on the held-to-maturity USDA Securities as of both September 30, 2020 and December 31, 2019 reflect their increased cost basis resulting from their transfer to held-to-maturity as of October 1, 2016.

The credit exposure related to Farmer Mac's USDA Guarantees line of business is covered by the full faith and credit guarantee of the United States of America. As of September 30, 2020, Farmer Mac had executed COVID-19 payment deferments on loans with unpaid principal balances of $83.8 million underlying USDA Securities.

The unrealized losses from AgVantage securities were on 12 and 17 available-for-sale securities as of September 30, 2020 and December 31, 2019, respectively. There were 2 and 4 held-to-maturity AgVantage securities with an unrealized loss as of September 30, 2020 and December 31, 2019,

respectively. As of September 30, 2020 and December 31, 2019, 7 and 13 available-for-sale AgVantage securities, respectively, had been in a loss position for more than 12 months.

During the three and nine months ended September 30, 2020 and 2019, Farmer Mac had no sales of Farmer Mac Guaranteed Securities or USDA Securities and, therefore, Farmer Mac realized no gains or losses.

The amortized cost, fair value, and weighted-average yield of available-for-sale and held-to-maturity Farmer Mac Guaranteed Securities and USDA Securities by remaining contractual maturity as of September 30, 2020 are set forth below. The balances presented are based on their final maturities, although the actual maturities may differ due to prepayments of the underlying assets.

Table 3.3

	As of September 30, 2020
	Available-for-Sale Securities
	Amortized Cost(1)		Fair Value		Weighted- Average Yield
	(dollars in thousands)
Due within one year	$	1,461,551	$	1,468,084	1.48	%
Due after one year through five years	3,102,003		3,214,595		2.24	%
Due after five years through ten years	1,073,248		1,157,450		2.42	%
Due after ten years	1,513,804		1,671,509		2.57	%
Total	$	7,150,606	$	7,511,638	2.18	%

(1)Amounts presented exclude $32.7 million of accrued interest receivable.

	As of September 30, 2020
	Held-to-Maturity Securities
	Amortized Cost(1)		Fair Value		Weighted- Average Yield
	(dollars in thousands)
Due within one year	$	482,593	$	486,460	2.75	%
Due after one year through five years	765,529		790,138		3.15	%
Due after five years through ten years	226,396		234,799		2.96	%
Due after ten years	2,137,116		2,231,239		3.25	%
Total	$	3,611,634	$	3,742,636	3.11	%

(1)Amounts presented exclude $41.1 million of accrued interest receivable.

XML

Financial Derivatives

9 Months Ended

Sep. 30, 2020

Derivative Instruments and Hedging Activities Disclosure [Abstract]

FINANCIAL DERIVATIVES

FINANCIAL DERIVATIVESFarmer Mac enters into financial derivative transactions to protect against risk from the effects of market price, or interest rate movements, on the value of certain assets, future cash flows, or debt issuance, and not for trading or speculative purposes.  For more information about Farmer Mac's financial derivatives, see Note 6 in Farmer Mac's Annual Report on Form 10-K for the fiscal year ended December 31, 2019 filed with the SEC on February 25, 2020.

The following tables summarize information related to Farmer Mac's financial derivatives on a gross basis without giving consideration to master netting arrangements as of September 30, 2020 and December 31, 2019:

Table 4.1

	As of September 30, 2020
			Fair Value				Weighted- Average Pay Rate	Weighted- Average Receive Rate	Weighted- Average Forward Price	Weighted- Average Remaining Term (in years)
	Notional Amount		Asset		(Liability)
	(dollars in thousands)
Fair value hedges:
Interest rate swaps:
Pay fixed non-callable	$	5,410,407	$	5,530	$	(4,106)	2.26%	0.24%		12.02
Receive fixed non-callable	2,435,729		—		(11,532)		0.35%	1.75%		2.26
Receive fixed callable	343,500		4,460		—		0.18%	1.78%		3.41
Cash flow hedges:
Interest rate swaps:
Pay fixed non-callable	482,000		1,597		(10,739)		2.02%	0.56%		6.17
No hedge designation:
Interest rate swaps:
Pay fixed non-callable	356,864		—		(10,879)		2.38%	0.24%		4.26
Receive fixed non-callable	2,622,182		—		—		0.16%	0.98%		0.73
Receive fixed callable	200,000		1		(5)		0.07%	0.08%		0.97
Basis swaps	3,268,500		1,242		(188)		0.22%	0.25%		1.29
Treasury futures	4,400		9		—				139.73
Credit valuation adjustment			(2)		92
Total financial derivatives	$	15,123,582	$	12,837	$	(37,357)
Collateral (held)/pledged			(600)		225,646
Net amount			$	12,237	$	188,289

	As of December 31, 2019
			Fair Value				Weighted- Average Pay Rate	Weighted- Average Receive Rate	Weighted- Average Forward Price	Weighted- Average Remaining Term (in years)
	Notional Amount		Asset		(Liability)
	(dollars in thousands)
Fair value hedges:
Interest rate swaps:
Pay fixed non-callable	$	4,955,686	$	7,163	$	(3,281)	2.47%	1.93%		11.26
Receive fixed non-callable	1,413,200		76		(5,329)		1.88%	2.13%		1.25
Receive fixed callable	524,000		476		(772)		1.52%	1.91%		2.83
Cash flow hedges:
Interest rate swaps:
Pay fixed non-callable	428,000		1,882		(1,514)		2.36%	2.12%		5.43
No hedge designation:
Interest rate swaps:
Pay fixed non-callable	342,745		7		(14,046)		3.55%	2.00%		5.51
Receive fixed non-callable	3,124,148		49		(1,637)		1.88%	2.06%		1.66
Receive fixed callable	525,000		79		(80)		1.64%	1.68%		0.83
Basis swaps	2,670,000		787		(395)		1.86%	1.76%		0.90
Treasury futures	39,400		—		(51)				128.29
Credit valuation adjustment			—		63
Total financial derivatives	$	14,022,179	$	10,519	$	(27,042)
Collateral (held)/pledged			(2,685)		132,129
Net amount			$	7,834	$	105,087

As of September 30, 2020, Farmer Mac expects to reclassify $5.3 million after tax from accumulated other comprehensive income to earnings over the next twelve months. This amount could differ from amounts actually recognized due to changes in interest rates, hedge de-designations, and the addition of other hedges after September 30, 2020. During the three and nine months ended September 30, 2020 and 2019, there were no gains or losses from interest rate swaps designated as cash flow hedges reclassified to earnings because it was probable that the originally forecasted transactions would occur.

The following table summarizes the net income/(expense) recognized in the consolidated statements of operations related to derivatives for the three and nine months ended September 30, 2020 and 2019:

Table 4.2

	For the Three Months Ended September 30, 2020
	Net Income/(Expense) Recognized in Consolidated Statement of Operations on Derivatives
	Net Interest Income						Non-Interest Income		Total
	Interest Income Farmer Mac Guaranteed Securities and USDA Securities		Interest Income Loans		Total Interest Expense		Losses on financial derivatives
	(in thousands)
Total amounts presented in the consolidated statement of operations	$	45,335	$	56,204	$	(63,974)	$	(564)	$	37,001
Income/(expense) related to interest settlements on fair value hedging relationships:
Recognized on derivatives	(20,373)		(6,194)		9,605		—		(16,962)
Recognized on hedged items	31,439		10,965		(12,328)		—		30,076
Discount amortization recognized on hedged items	—		—		(191)		—		(191)
Income/(expense) related to interest settlements on fair value hedging relationships	$	11,066	$	4,771	$	(2,914)	$	—	$	12,923
(Losses)/gains on fair value hedging relationships:
Recognized on derivatives	$	38,363	$	28,198	$	(9,665)	$	—	$	56,896
Recognized on hedged items	(41,855)		(29,372)		9,284		—		(61,943)
(Losses)/gains on fair value hedging relationships	$	(3,492)	$	(1,174)	$	(381)	$	—	$	(5,047)
Expense related to interest settlements on cash flow hedging relationships:
Interest settlements reclassified from AOCI into net income on derivatives	$	—	$	—	$	(1,814)	$	—	$	(1,814)
Recognized on hedged items	—		—		(711)		—		(711)
Discount amortization recognized on hedged items	—		—		(4)		—		(4)
Expense recognized on cash flow hedges	$	—	$	—	$	(2,529)	$	—	$	(2,529)
Losses on financial derivatives not designated in hedging relationships:
Losses on interest rate swaps	$	—	$	—	$	—	$	(4,292)	$	(4,292)
Interest expense on interest rate swaps	—		—		—		3,800		3,800
Treasury futures	—		—		—		(72)		(72)
Losses on financial derivatives not designated in hedge relationships	$	—	$	—	$	—	$	(564)	$	(564)

	For The Three Months Ended September 30, 2019
	Net Income/(Expense) Recognized in Consolidated Statement of Operations on Derivatives
	Net Interest Income						Non-Interest Income		Total
	Interest Income Farmer Mac Guaranteed Securities and USDA Securities		Interest Income Loans		Total Interest Expense		Losses on financial derivatives
	(in thousands)
Total amounts presented in the consolidated statement of operations:	$	81,649	$	56,992	$	(121,384)	$	(7,360)	$	9,897
Income/(expense) related to interest settlements on fair value hedging relationships:
Recognized on derivatives	(1,051)		(584)		(961)		—		(2,596)
Recognized on hedged items	31,435		7,321		(10,778)		—		27,978
Discount amortization recognized on hedged items	—		—		(146)		—		(146)
Income/(expense) related to interest settlements on fair value hedging relationships	$	30,384	$	6,737	$	(11,885)	$	—	$	25,236
(Losses)/gains on fair value hedging relationships:
Recognized on derivatives	$	(87,495)	$	(35,597)	$	1,979	$	—	$	(121,113)
Recognized on hedged items	84,164		33,493		(1,034)		—		116,623
(Losses)/gains on fair value hedging relationships	$	(3,331)	$	(2,104)	$	945	$	—	$	(4,490)
Expense related to interest settlements on cash flow hedging relationships:
Interest settlements reclassified from AOCI into net income on derivatives	$	—	$	—	$	317	$	—	$	317
Recognized on hedged items	—		—		(2,726)		—		(2,726)
Discount amortization recognized on hedged items	—		—		(1)		—		(1)
Expense recognized on cash flow hedges	$	—	$	—	$	(2,410)	$	—	$	(2,410)
Losses on financial derivatives not designated in hedge relationships:
Losses on interest rate swaps	$	—	$	—	$	—	$	(7,402)	$	(7,402)
Interest expense on interest rate swaps	—		—		—		127		127
Treasury futures	—		—		—		(85)		(85)
Losses on financial derivatives not designated in hedge relationships	$	—	$	—	$	—	$	(7,360)	$	(7,360)

	For the Nine Months Ended September 30, 2020
	Net Income/(Expense) Recognized in Consolidated Statement of Operations on Derivatives
	Net Interest Income						Non-Interest Income		Total
	Interest Income Farmer Mac Guaranteed Securities and USDA Securities		Interest Income Loans		Total Interest Expense		Losses on financial derivatives
	(in thousands)
Total amounts presented in the consolidated statement of operations	$	178,644	$	172,230	$	(251,789)	$	(3,339)	$	95,746
Income/(expense) related to interest settlements on fair value hedging relationships:
Recognized on derivatives	(38,781)		(12,607)		16,671		—		(34,717)
Recognized on hedged items	95,366		29,454		(39,325)		—		85,495
Discount amortization recognized on hedged items	—		—		(552)		—		(552)
Income/(expense) related to interest settlements on fair value hedging relationships	$	56,585	$	16,847	$	(23,206)	$	—	$	50,226
(Losses)/gains on fair value hedging relationships:
Recognized on derivatives	$	(264,797)	$	(124,322)	$	52,991	$	—	$	(336,128)
Recognized on hedged items	257,575		119,072		(53,628)		—		323,019
(Losses)/gains on fair value hedging relationships	$	(7,222)	$	(5,250)	$	(637)	$	—	$	(13,109)
Expense related to interest settlements on cash flow hedging relationships:
Interest settlements reclassified from AOCI into net income on derivatives	$	—	$	—	$	(3,817)	$	—	$	(3,817)
Recognized on hedged items	—		—		(3,863)		—		(3,863)
Discount amortization recognized on hedged items	—		—		(6)		—		(6)
Expense recognized on cash flow hedges	$	—	$	—	$	(7,686)	$	—	$	(7,686)
(Losses)/gains on financial derivatives not designated in hedging relationships:
Losses on interest rate swaps	$	—	$	—	$	—	$	(2,415)	$	(2,415)
Interest expense on interest rate swaps	—		—		—		1,143		1,143
Treasury futures	—		—		—		(2,067)		(2,067)
(Losses)/gains on financial derivatives not designated in hedge relationships	$	—	$	—	$	—	$	(3,339)	$	(3,339)

	For The Nine Months Ended September 30, 2019
	Net Income/(Expense) Recognized in Consolidated Statement of Operations on Derivatives
	Net Interest Income						Non-Interest Income		Total
	Interest Income Farmer Mac Guaranteed Securities and USDA Securities		Interest Income Loans		Total Interest Expense		Gains on financial derivatives
	(in thousands)
Total amounts presented in the consolidated statement of operations:	$	252,629	$	167,792	$	(358,374)	$	1,193	$	63,240
Income/(expense) related to interest settlements on fair value hedging relationships:
Recognized on derivatives	1,665		(808)		(6,751)		—		(5,894)
Recognized on hedged items	86,628		18,199		(32,594)		—		72,233
Discount amortization recognized on hedged items	—		—		(460)		—		(460)
Income/(expense) related to interest settlements on fair value hedging relationships	$	88,293	$	17,391	$	(39,805)	$	—	$	65,879
Gains/(losses) on fair value hedging relationships:
Recognized on derivatives	$	(262,886)	$	(89,631)	$	27,101	$	—	$	(325,416)
Recognized on hedged items	258,155		83,524		(24,880)		—		316,799
Gains/(losses) on fair value hedging relationships	$	(4,731)	$	(6,107)	$	2,221	$	—	$	(8,617)
Expense related to interest settlements on cash flow hedging relationships:
Interest settlements reclassified from AOCI into net income on derivatives	$	—	$	—	$	1,260	$	—	$	1,260
Recognized on hedged items	—		—		(8,142)		—		(8,142)
Discount amortization recognized on hedged items	—		—		(3)		—		(3)
Expense recognized on cash flow hedges	$	—	$	—	$	(6,885)	$	—	$	(6,885)
Gains on financial derivatives not designated in hedge relationships:
Gains on interest rate swaps	$	—	$	—	$	—	$	5,920	$	5,920
Interest expense on interest rate swaps	—		—		—		(3,321)		(3,321)
Treasury futures	—		—		—		(1,406)		(1,406)
Gains on financial derivatives not designated in hedge relationships	$	—	$	—	$	—	$	1,193	$	1,193

The following table shows the carrying amount and associated cumulative basis adjustment related to the application of hedge accounting that is included in the carrying amount of hedged assets and liabilities in fair value hedging relationships as of September 30, 2020 and December 31, 2019:

Table 4.3

	Hedged Items in Fair Value Relationship
	Carrying Amount of Hedged Assets/(Liabilities)				Cumulative Amount of Fair Value Hedging Adjustments included in the Carrying Amount of the Hedged Assets/(Liabilities)
	September 30, 2020		December 31, 2019		September 30, 2020		December 31, 2019
	(in thousands)
Farmer Mac Guaranteed Securities, Available-for-Sale, at fair value(1)	$	4,277,240	$	4,092,611	$	437,777	$	180,215
Loans held for investment, at amortized cost(2)(3)	1,628,241		1,050,335		156,979		37,907
Notes Payable(4)	(2,838,690)		(2,761,052)		(61,149)		(7,433)

(1)Includes $1.6 million of hedging adjustments on discontinued hedging relationships as of September 30, 2020.

(2)Includes $1.4 million of hedging adjustments on a discontinued hedging relationship as of September 30, 2020.

(3)Includes $0.2 million as of September 30, 2020 in fair value adjustment, currently included in "Prepaid expenses and other assets" related to hedge accounting designations of purchase commitments

(4)Carrying amount represents amortized cost.

The following table shows Farmer Mac's credit exposure to interest rate swap counterparties as of September 30, 2020 and December 31, 2019:

Table 4.4

	September 30, 2020
	Gross Amount Recognized(1)		Counterparty Netting		Net Amount Presented in the Consolidated Balance Sheet
	(in thousands)
Assets:
Derivatives
Interest rate swap	$	114,788	$	114,165	$	623
Liabilities:
Derivatives
Interest rate swap	$	718,812	$	714,470	$	4,342

(1)Gross amount excludes netting arrangements and any adjustment for nonperformance risk, but includes accrued interest.

	December 31, 2019
	Gross Amount Recognized(1)		Counterparty Netting		Net Amount Presented in the Consolidated Balance Sheet
	(in thousands)
Assets:
Derivatives
Interest rate swaps	$	56,139	$	53,771	$	2,368
Liabilities:
Derivatives
Interest rate swaps	$	305,584	$	291,326	$	14,258

(1)Gross amount excludes netting arrangements and any adjustment for nonperformance risk, but includes accrued interest.

As of September 30, 2020, Farmer Mac held $0.6 million of cash and no investment securities as collateral for its derivatives in net asset positions, compared to $2.7 million of cash and no investment securities as collateral for its derivatives in net asset positions as of December 31, 2019.

Farmer Mac posted $13.6 million cash and $212.1 million of investment securities as of September 30, 2020 and posted $0.5 million cash and $131.7 million investment securities as of December 31, 2019.  Farmer Mac records posted cash as a reduction in the outstanding balance of cash and cash equivalents and an increase in the balance of prepaid expenses and other assets. Any investment securities posted as collateral are included in the investment securities balances on the consolidated balance sheets.  If Farmer Mac had breached certain provisions of the derivative contracts as of September 30, 2020 and December 31, 2019, it could have been required to settle its obligations under the agreements, but would not have been required to post additional collateral. As of September 30, 2020 and December 31, 2019, there were no financial derivatives in a net payable position where Farmer Mac was required to pledge collateral which the counterparty had the right to sell or repledge.

Of Farmer Mac's $15.1 billion notional amount of interest rate swaps outstanding as of September 30, 2020, $12.4 billion were cleared through the swap clearinghouse, the Chicago Mercantile Exchange ("CME"). Of Farmer Mac's $14.0 billion notional amount of interest rate swaps outstanding as of December 31, 2019, $11.0 billion were cleared through the CME. During the first half of 2020 and throughout 2019, Farmer Mac increased its use of non-cleared basis swaps as it began to prepare for the transition away from the use of LIBOR as a reference rate. For more information about interest rate swaps cleared through a clearinghouse, see Note 6 in Farmer Mac's Annual Report on Form 10-K for the fiscal year ended December 31, 2019 filed with the SEC on February 25, 2020.

XML

Loans

9 Months Ended

Sep. 30, 2020

Receivables [Abstract]

LOANS

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 basis adjustments. Loans held for sale are reported at the lower of cost or fair value determined on a pooled

basis. During the three months ended September 30, 2020, Farmer Mac acquired $59.2 million in loans held for sale, of which it sold $15.0 million during the quarter, and reclassified $24.2 million as loans held for investment. As of September 30, 2020 and December 31, 2019, Farmer Mac had $20.0 million and no loans held for sale, respectively.

The following table includes loans held for investment and loans held for sale and displays the composition of the loan balances as of September 30, 2020 and December 31, 2019:

Table 5.1

	As of September 30, 2020(1)						As of December 31, 2019(2)
	Unsecuritized		In Consolidated Trusts		Total		Unsecuritized		In Consolidated Trusts		Total
	(in thousands)
Farm & Ranch	$	4,580,917	$	1,276,407	$	5,857,324	$	3,675,640	$	1,600,917	$	5,276,557
Rural Utilities	2,109,355		—		2,109,355		1,671,293		—		1,671,293
Total unpaid principal balance(3)	6,690,272		1,276,407		7,966,679		5,346,933		1,600,917		6,947,850
Unamortized premiums, discounts, fair value hedge basis adjustment, and other cost basis adjustments	154,789		—		154,789		44,044		—		44,044
Total loans	6,845,061		1,276,407		8,121,468		5,390,977		1,600,917		6,991,894
Allowance for losses	(14,878)		(943)		(15,821)		(8,853)		(1,601)		(10,454)
Total loans, net of allowance	$	6,830,183	$	1,275,464	$	8,105,647	$	5,382,124	$	1,599,316	$	6,981,440

(1)Allowance for losses reflects the adoption of ASU 2016-13, "Financial Instruments - Credit Losses," effective January 1, 2020.

(2)Prior to the adoption of ASU 2016-13, "Financial Instruments - Credit Losses," effective January 1, 2020, Farmer Mac maintained an allowance for losses to cover estimated probable incurred losses on loans held.

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

Allowance for Losses

The following table is a summary, by asset type, of the allowance for losses as of September 30, 2020 and December 31, 2019:

Table 5.2

	September 30, 2020(1)		December 31, 2019(2)
	Allowance for Losses		Allowance for Losses
	(in thousands)
Loans:
Farm & Ranch	$	5,739	$	10,454
Rural Utilities	10,082		—
Total	$	15,821	$	10,454

(1)Allowance for losses reflects the adoption of ASU 2016-13, "Financial Instruments - Credit Losses," effective January 1, 2020.

(2)Prior to the adoption of ASU 2016-13, "Financial Instruments - Credit Losses," effective January 1, 2020, Farmer Mac maintained an allowance for loan losses to cover estimated probable incurred losses on loans held.

The following is a summary of the changes in the allowance for losses for the three and nine month period ended September 30, 2020 and 2019:

Table 5.3

	For the Three Months Ended				For the Nine Months Ended
	September 30, 2020(1)		September 30, 2019(2)		September 30, 2020(1)		September 30, 2019(2)
	Allowance for Losses		Allowance for Losses		Allowance for Losses		Allowance for Losses
	(in thousands)
Farm & Ranch:
Beginning Balance	$	6,039	$	7,264	$	10,454	$	7,017
Cumulative effect adjustment from adoption of current expected credit loss standard	—		—		(3,909)		—
Adjusted Beginning Balance	6,039		7,264		6,545		7,017
(Release of)/provision for losses	(300)		760		(412)		1,074
Charge-offs	—		—		(394)		(67)
Ending Balance(3)	$	5,739	$	8,024	$	5,739	$	8,024
Rural Utilities:
Beginning Balance	$	8,900	$	—	$	—	$	—
Cumulative effect adjustment from adoption of current expected credit loss standard	—		—		5,378		—
Adjusted Beginning Balance	8,900		—		5,378		—
Provision for losses	1,182		—		4,704		—
Charge-offs	—		—		—		—
Ending Balance(4)	$	10,082	$	—	$	10,082	$	—

(1)Allowance for losses reflects the adoption of ASU 2016-13, "Financial Instruments - Credit Losses," effective January 1, 2020.

(2)Prior to the adoption of ASU 2016-13, "Financial Instruments - Credit Losses," effective January 1, 2020, Farmer Mac maintained an allowance for loan losses to cover estimated probable incurred losses on loans held.

(3)Allowance for losses includes $1.8 million for collateral dependent assets secured by agricultural real estate.

(4)Allowance for losses includes no allowance for collateral dependent assets.

The cumulative transition adjustment decrease of $3.9 million in the Farm & Ranch portfolio was primarily driven by differences in the way that the two loss models measure the impact of low loan-to-value ratios in that portfolio. Under the previous accounting standard, Farmer Mac's estimated incurred loss model was based on historical weighted-average loss rates from realized losses within commodities and risk ratings. The historical weighted average loss rates were then applied to sub-portfolios, as disaggregated by commodity and risk rating, to calculate the general allowance. Under the CECL accounting standard, Farmer Mac's current expected credit losses are calculated individually based on the expected probability of default and the expected loss-given-default for each loan. The low loan-to-value ratios in the Farm & Ranch portfolio result in low individual losses-given-default. Thus, our expected credit losses as of January 1, 2020 were less than our estimate of incurred losses as of December 31, 2019.

The cumulative transition adjustment increase of $5.4 million in the Rural Utilities portfolio was primarily driven by the change from measuring incurred probable credit losses to measuring expected credit losses over the expected lives of these loans. Farmer Mac has never experienced a credit loss in its Rural Utilities portfolio. Additionally, these loans have strong credit ratings and performance, which supported Farmer Mac's estimate of no incurred credit losses under the previous accounting standard. Upon the adoption of CECL, Farmer Mac is now required to measure its expected credit losses for the entire expected life of all

financial instruments, including its Rural Utilities loans. To estimate expected credit losses on these loans, Farmer Mac relies upon industry data from ratings agencies and publicly available information as disclosed in the securities filings of other major lenders who serve the utilities industry. Under the CECL accounting standard, Farmer Mac's loss allowance model for these loans is primarily impacted by the long-term maturities of the loans and their low probability of prepayment. In addition, the highly-specialized nature of power generation and transmission and other rural infrastructure facilities results in significant expected losses given default even though the probability of default is low. Thus, the long-term expected lives of these loans combined with high losses given default result in an estimate of expected losses although we have never incurred a credit loss in this portfolio.

The provision to the allowance for loan losses of $0.9 million recorded during third quarter 2020 was primarily due to the impact of net new loan volume in the Rural Utilities portfolio and credit downgrades on existing volume during the quarter. The impact of the Rural Utilities portfolio on the net increase to the provision was partially offset by improving economic factors that uniquely impacted the Farm & Ranch portfolio, specifically continued improvements in commodity prices and continued expectations for stable farm land values.

The provision to the allowance for loan losses of $4.3 million recorded during the nine months ended September 30, 2020 was primarily due to the impact of net new loan volume in the Rural Utilities portfolio and the impact of economic factor forecasts on the Rural Utilities portfolio, especially continued expected higher unemployment, as a result of the COVID-19 pandemic and the resulting economic volatility.

The provision for the allowance for loan losses recorded during three and nine months ended September 30, 2019 was attributable to a decrease in the portfolio credit quality, primarily related to idiosyncratic factors of a few large loans and less related to systemic, macroeconomic factors. The $0.1 million charge-off that occurred during the nine months ended September 30, 2019 related to the foreclosure of one part-time farm loan.

The following table presents the unpaid principal balances by delinquency status of Farmer Mac's loans and non-performing assets as of September 30, 2020:

Table 5.4

	As of September 30, 2020
	Accruing
	Current(5)		30-59 Days		60-89 Days		90 Days and Greater(2)		Total Past Due		Nonaccrual loans(3)(4)		Total Loans
	(in thousands)
Loans(1):
Farm & Ranch	$	5,716,834	$	3,513	$	637	$	6,901	$	11,051	$	129,439	$	5,857,324
Rural Utilities	2,109,355		—		—		—		—		—		2,109,355
Total	$	7,826,189	$	3,513	$	637	$	6,901	$	11,051	$	129,439	$	7,966,679

(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)Includes loans in consolidated trusts with beneficial interests owned by third parties that are 90 days or more past due.

(3)Includes loans 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.

(4)Includes $24.8 million of nonaccrual loans for which there was no associated allowance. During the three and nine months ended September 30, 2020, Farmer Mac received $1.2 million and $3.5 million, respectively, in interest on nonaccrual loans.

(5)Includes $105.3 million of unpaid principal balance related to Farm & Ranch loans that Farmer Mac has executed a COVID-19 payment deferment.

The following tables present the unpaid principal balances of loans held and the related total allowance for losses by impairment method and commodity type as of December 31, 2019:

Table 5.5

	As of December 31, 2019
	Crops		Permanent Plantings		Livestock		Part-time Farm		Ag. Storage and Processing		Other		Total
	(in thousands)
Ending Balance:
Collectively evaluated for impairment	$	2,664,362	$	1,161,900	$	871,341	$	356,920	$	10,360	$	4,597	$	5,069,480
Individually evaluated for impairment	108,815		51,256		39,962		7,044		—		—		207,077
Total Farm & Ranch loans	$	2,773,177	$	1,213,156	$	911,303	$	363,964	$	10,360	$	4,597	$	5,276,557
Allowance for Losses:
Collectively evaluated for impairment	$	1,880	$	1,362	$	714	$	249	$	47	$	4	$	4,256
Individually evaluated for impairment	2,628		1,008		2,447		115		—		—		6,198
Total Farm & Ranch loans	$	4,508	$	2,370	$	3,161	$	364	$	47	$	4	$	10,454

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, 2019:

Table 5.6

	As of December 31, 2019
	Crops		Permanent Plantings		Livestock		Part-time Farm		Ag. Storage and Processing		Other		Total
	(in thousands)
Impaired Loans:
With no specific allowance:
Recorded investment	$	30,846	$	16,696	$	3,195	$	1,398	$	—	$	56	$	52,191
Unpaid principal balance	30,741		16,638		3,185		1,394		—		56		52,014
With a specific allowance:
Recorded investment(1)	84,044		36,852		47,113		6,376		—		—		174,385
Unpaid principal balance	83,772		36,732		46,984		6,356		—		—		173,844
Associated allowance	2,725		1,051		2,636		129		—		—		6,541
Total:
Recorded investment	114,890		53,548		50,308		7,774		—		56		226,576
Unpaid principal balance	114,513		53,370		50,169		7,750		—		56		225,858
Associated allowance	2,725		1,051		2,636		129		—		—		6,541
Recorded investment of loans on nonaccrual status(2)	$	34,037	$	22,849	$	28,441	$	2,454	$	—	$	—	$	87,781

(1)Impairment analysis was performed in the aggregate in consideration of similar risk characteristics of the assets and historical statistics on $159.1 million (70%) of impaired loans as of December 31, 2019, which resulted in a specific allowance of $3.0 million.

(2)Includes $30.1 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 three and nine months ended September 30, 2019:

Table 5.7

	September 30, 2019
	Crops		Permanent Plantings		Livestock		Part-time Farm		Ag. Storage and Processing		Other		Total
	(in thousands)
For the Three Months Ended:
Average recorded investment in impaired loans	$	106,535	$	45,197	$	36,859	$	8,265	$	—	$	58	$	196,914
Income recognized on impaired loans	178		166		87		105		—		—		536
For the Nine Months Ended:
Average recorded investment in impaired loans	$	93,088	$	41,524	$	31,189	$	8,079	$	—	$	63	$	173,943
Income recognized on impaired loans	879		586		504		227		—		—		2,196

Net credit losses and 90-day delinquencies as of and for the periods indicated for loans held are presented in the table below.  As of December 31, 2019, 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 5.8

	90-Day Delinquencies(1)		Net Credit Losses
	As of		For the Nine Months Ended
	December 31, 2019		September 30, 2019
	(in thousands)
Farm & Ranch loans	$	57,719	$	131

(1)Includes loans 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 $57.7 million of on-balance sheet loans reported as 90-day delinquencies as of December 31, 2019, no loans were subject to "removal-of-account" provisions.

Rural Utilities

As of December 31, 2019, no allowance for losses had been provided for Farmer Mac's Rural Utilities line of business based on the performance of the loans in this line of business and the credit quality of the collateral supporting these loans, as well as Farmer Mac's counterparty risk analysis. As of December 31, 2019, there were no delinquencies or probable losses inherent in Farmer Mac's Rural Utilities loans held or underlying LTSPCs.

Credit Quality Indicators

The following tables present credit quality indicators related to Farm & Ranch loans and Rural Utilities loans held as of September 30, 2020, by year of origination:

Table 5.9

	As of September 30, 2020
	Year of Origination:
	2020		2019		2018		2017		2016		Prior		Revolving Loans - Amortized Cost Basis		Total
	(in thousands)
Farm & Ranch(1):
Internally Assigned Risk Rating:
Acceptable	$	1,423,112	$	765,367	$	507,218	$	557,095	$	499,642	$	1,157,633	$	472,209	$	5,382,276
Special mention(2)	39,607		124,068		27,757		4,633		10,897		22,236		50,395		279,593
Substandard(3)	7,556		5,926		19,682		57,541		36,490		59,330		8,930		195,455
Total	$	1,470,275	$	895,361	$	554,657	$	619,269	$	547,029	$	1,239,199	$	531,534	$	5,857,324
For the Three Months Ended:
Current period charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Current period recoveries	—		—		—		—		—		—		—		—
Current period Farm & Ranch net charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
For the Nine Months Ended:
Current period charge-offs	$	—	$	—	$	—	$	—	$	—	$	394	$	—	$	394
Current period recoveries	—		—		—		—		—		—		—		—
Current period Farm & Ranch net charge-offs	$	—	$	—	$	—	$	—	$	—	$	394	$	—	$	394

(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 September 30, 2020
	Year of Origination:
	2020		2019		2018		2017		2016		Prior		Revolving Loans - Amortized Cost Basis		Total
	(in thousands)
Rural Utilities(1):
Internally Assigned Risk Rating:
Acceptable	$	502,873	$	819,099	$	8,260	$	92,223	$	31,275	$	638,281	$	12,870	$	2,104,881
Special mention(2)	—		—		—		—		—		—		—		—
Substandard(3)	—		—		—		—		—		4,474		—		4,474
Total	$	502,873	$	819,099	$	8,260	$	92,223	$	31,275	$	642,755	$	12,870	$	2,109,355
For the Three Months Ended:
Current period charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Current period recoveries	—		—		—		—		—		—		—		—
Current period Rural Utilities net charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
For the Nine Months Ended:
Current period charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Current period recoveries	—		—		—		—		—		—		—		—
Current period Rural Utilities net charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

(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.

The following table presents credit quality indicators related to Farm & Ranch loans held as of December 31, 2019:

Table 5.10

	As of December 31, 2019
	Crops		Permanent Plantings		Livestock		Part-time Farm		Ag. Storage and Processing		Other		Total
	(in thousands)
Internally Assigned Risk Rating(1)
Acceptable	$	2,556,956	$	1,050,160	$	825,234	$	343,329	$	10,360	$	4,597	$	4,790,636
Special mention(2)	107,406		111,739		46,107		13,591		—		—		278,843
Substandard(3)	108,815		51,257		39,962		7,044		—		—		207,078
Total	$	2,773,177	$	1,213,156	$	911,303	$	363,964	$	10,360	$	4,597	$	5,276,557
Commodity analysis of past due loans(1)	$	21,167	$	15,828	$	19,354	$	1,370	$	—	$	—	$	57,719

(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.

XML

Guarantees

9 Months Ended

Sep. 30, 2020

Commitments and Contingencies Disclosure [Abstract]

GUARANTEES

GUARANTEES

The following table presents the maximum principal amount of potential undiscounted future payments that Farmer Mac could be required to make under all off-balance sheet Farmer Mac Guaranteed Securities as of September 30, 2020 and December 31, 2019, not including offsets provided by any recourse provisions, recoveries from third parties, or collateral for the underlying loans:

Table 6.1

Outstanding Balance of Off-Balance Sheet Farmer Mac Guaranteed Securities
	As of September 30, 2020		As of December 31, 2019
	(in thousands)
Farm & Ranch:
Farmer Mac Guaranteed Securities	$	85,767	$	107,322
USDA Guarantees:
Farmer Mac Guaranteed USDA Securities	310,682		389,216
Institutional Credit:
AgVantage Securities	6,068		7,567
Total off-balance sheet Farmer Mac Guaranteed Securities	$	402,517	$	504,105

Eligible loans and other eligible assets may be placed into trusts that are used as vehicles for the securitization of the transferred assets and the Farmer Mac-guaranteed beneficial interests in the trusts are sold to investors.  The following table summarizes the significant cash flows received from and paid to trusts used for Farmer Mac securitizations:

Table 6.2

	For the Nine Months Ended
	September 30, 2020		September 30, 2019
	(in thousands)
Proceeds from new securitizations	$	64,612	$	199,396
Guarantee fees received	1,136		1,122

Farmer Mac presents a liability for its obligation to stand ready under its guarantee in "Guarantee and commitment obligation" on the consolidated balance sheets.  The following table presents the liability and the weighted-average remaining maturity of all loans underlying off-balance sheet Farmer Mac Guaranteed Securities:

Table 6.3

	As of September 30, 2020		As of December 31, 2019
	(dollars in thousands)
Guarantee and commitment obligation	$	1,780	$	2,230
Weighted average remaining maturity:
Farmer Mac Guaranteed Securities	9.5 years		9.8 years
AgVantage Securities	4.2 years		5.0 years

Long-Term Standby Purchase Commitments

Farmer Mac has recorded a liability for its obligation to stand ready under the guarantee in the guarantee and commitment obligation on the consolidated balance sheets.  The following table presents the liability, the maximum principal amount of potential undiscounted future payments that Farmer Mac could be requested to make under all LTSPCs, not including offsets provided by any recourse provisions, recoveries from third parties, or collateral for the underlying loans, as well as the weighted-average remaining maturity of all loans underlying LTSPCs:

Table 6.4

	As of September 30, 2020		As of December 31, 2019
	(dollars in thousands)
Guarantee and commitment obligation(1)	$	33,360	$	34,470
Maximum principal amount	2,882,212		3,002,349
Weighted-average remaining maturity	15.1 years		15.2 years

(1) Relates to LTSPCs issued or modified on or after January 1, 2003.

Reserve for Losses

The following table is a summary, by asset type, of the reserve for losses as of September 30, 2020 and December 31, 2019:

Table 6.5

	September 30, 2020(1)		December 31, 2019(2)
	Reserve for Losses		Reserve for Losses
	(in thousands)
Farm & Ranch:
LTSPCs and Farmer Mac Guaranteed Securities	$	2,278	$	2,164
Rural Utilities
LTSPCs	1,290		—
Total	$	3,568	$	2,164

(1)Reserve for losses reflects the adoption of ASU 2016-13, "Financial Instruments - Credit Losses," in first quarter 2020.

(2)Prior to the adoption of ASU 2016-13, "Financial Instruments - Credit Losses," in first quarter 2020, Farmer Mac maintained a reserve for losses to cover estimated probable incurred losses on loans underlying LTSPCs and off-balance sheet Farm & Ranch Farmer Mac Guaranteed Securities.

The following is a summary of the changes in the reserve for losses for the three and nine month period ended September 30, 2020 and 2019:

Table 6.6

	For the Three Months Ended				For the Nine Months Ended
	September 30, 2020(1)		September 30, 2019(2)		September 30, 2020(1)		September 30, 2019(2)
	Reserve for Losses		Reserve for Losses		Reserve for Losses		Reserve for Losses
	(in thousands)
Farm & Ranch:
Beginning Balance	$	1,650	$	1,880	$	2,164	$	2,167
Cumulative effect adjustment from adoption of current expected credit loss standard	—		—		(148)		—
Adjusted Beginning Balance	1,650		1,880		2,016		2,167
Provision for/(release of) losses	$	628	$	(137)	$	262	$	(424)
Ending Balance	$	2,278	$	1,743	$	2,278	$	1,743
Rural Utilities:
Beginning Balance	$	1,370	$	—	$	—	$	—
Cumulative effect adjustment from adoption of current expected credit loss standard	—		—		1,011		—
Adjusted Beginning Balance	1,370		—		1,011		—
(Release of)/provision for losses	$	(80)	$	—	$	279	$	—
Ending Balance	$	1,290	$	—	$	1,290	$	—

(1)Reserve for losses reflects the adoption of ASU 2016-13, "Financial Instruments - Credit Losses," in first quarter 2020.

(2)Prior to the adoption of ASU 2016-13, "Financial Instruments - Credit Losses," in first quarter 2020, Farmer Mac maintained a reserve for losses to cover estimated probable incurred losses on loans underlying LTSPCs and off-balance sheet Farm & Ranch Farmer Mac Guaranteed Securities.

The provision to the reserve for losses recorded during the three and nine months ended September 30, 2020 was primarily due to credit downgrades in the LTSPC portfolio.

The release from the reserve for losses recorded during third quarter 2019 was primarily attributable to a net volume decrease in off-balance sheet Farm & Ranch LTSPCs and slight improvements in off-balance sheet portfolio credit quality.

The following table presents the unpaid principal balances by delinquency status of Farm & Ranch loans underlying LTSPCs. Farm & Ranch Farmer Mac Guaranteed Securities, Rural Utilities loans underlying LTSPCs, and non-performing assets as of September 30, 2020:

Table 6.7

	As of September 30, 2020
	Current(2)		30-59 Days		60-89 Days		90 Days and Greater(1)		Total Past Due		Total Loans
	(in thousands)
Farm and Ranch:
LTSPCs and Farmer Mac Guaranteed Securities	$	2,352,454	$	2,934	$	22,690	$	13,947	$	39,571	$	2,392,025
Rural Utilities:
LTSPCs	$	575,954	$	—	$	—	$	—	$	—	$	575,954

(1)Includes loans underlying off-balance sheet Farm & Ranch Guaranteed Securities and LTSPCs that are 90 days of 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.

(2)Includes $185.4 million of unpaid principal balance related to Farm & Ranch LTSPCs for which the lender has notified Farmer Mac of an executed COVID-19 payment deferment.

The following tables present the unpaid principal balances of Farm & Ranch loans underlying LTSPCs and off-balance sheet Farmer Mac Guaranteed Securities (excluding AgVantage securities) and the related reserve for losses by impairment method and commodity type as of December 31, 2019:

Table 6.8

	As of December 31, 2019
	Crops		Permanent Plantings		Livestock		Part-time Farm		Ag. Storage and Processing		Other		Total
	(in thousands)
Ending Balance:
Collectively evaluated for impairment:	$	1,151,983	$	511,991	$	581,377	$	167,395	$	66,106	$	2,760	$	2,481,612
Individually evaluated for impairment:	5,698		2,114		10,207		706		—		56		18,781
Total Farm & Ranch	$	1,157,681	$	514,105	$	591,584	$	168,101	$	66,106	$	2,816	$	2,500,393
Allowance for Losses:
Collectively evaluated for impairment:	$	599	$	96	$	308	$	50	$	767	$	1	$	1,821
Individually evaluated for impairment:	97		43		189		14		—		—		343
Total Farm & Ranch	$	696	$	139	$	497	$	64	$	767	$	1	$	2,164

Net credit losses and 90-day delinquencies as of and for the periods indicated for loans underlying off-balance sheet securities representing interests in pools of eligible Farm & Ranch LTSPCs are presented in the table below.  As of December 31, 2019, there were no delinquencies and no probable losses inherent in Farmer Mac's Rural Utilities LTSPCs portfolio and Farmer Mac had not experienced credit losses on any Rural Utilities LTSPCs.

Table 6.9

	90-Day Delinquencies(1)		Net Credit Losses/(Recoveries)
	As of		For the Nine Months Ended
	December 31, 2019		September 30, 2019
	(in thousands)
Farm & Ranch LTSPCs and Farmer Mac Guaranteed Securities	$	3,235	$	—

(1)Includes 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.

Credit Quality Indicators

The following tables present credit quality indicators related to Farm & Ranch loans underlying LTSPCs, Farm & Ranch Farmer Mac Guaranteed Securities, and Rural Utilities loans underlying LTSPCs as of September 30, 2020, by year of origination:

Table 6.10

	As of September 30, 2020
	Year of Origination:
	2020		2019		2018		2017		2016		Prior		Revolving Loans - Amortized Cost Basis		Total
	(in thousands)
Farm & Ranch LTSPCs and Farmer Mac Guaranteed Securities:
Internally Assigned Risk Rating:
Acceptable	$	118,116	$	207,202	$	184,421	$	245,490	$	216,983	$	1,021,400	$	173,617	$	2,167,229
Special mention(1)	—		1,742		1,509		23,200		14,628		47,948		10,040		99,067
Substandard(2)	264		10,821		12,676		15,614		14,401		67,338		4,615		125,729
Total	$	118,380	$	219,765	$	198,606	$	284,304	$	246,012	$	1,136,686	$	188,272	$	2,392,025
For the Three Months Ended:
Current period charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Current period recoveries	—		—		—		—		—		—		—		—
Current period Farm & Ranch net charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
For the Nine Months Ended:
Current period charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Current period recoveries	—		—		—		—		—		—		—		—
Current period Farm & Ranch net charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

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

(2)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 September 30, 2020
	Year of Origination:
	2020		2019		2018		2017		2016		Prior		Revolving Loans - Amortized Cost Basis		Total
	(in thousands)
Rural Utilities LTSPCs:
Internally Assigned Risk Rating:
Acceptable	$	—	$	—	$	—	$	—	$	—	$	569,324	$	6,630	$	575,954
Special mention(1)	—		—		—		—		—		—		—		—
Substandard(2)	—		—		—		—		—		—		—		—
Total	$	—	$	—	$	—	$	—	$	—	$	569,324	$	6,630	$	575,954
For the Three Months Ended
Current period charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Current period recoveries	—		—		—		—		—		—		—		—
Current period Rural Utilities net charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
For the Nine Months Ended:
Current period charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Current period recoveries	—		—		—		—		—		—		—		—
Current period Rural Utilities net charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

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

(2)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.

The following table presents credit quality indicators related to Farm & Ranch loans underlying LTSPCs and off-balance sheet Farm & Ranch Farmer Mac Guaranteed Securities as of December 31, 2019:

Table 6.11

	As of December 31, 2019
	Crops		Permanent Plantings		Livestock		Part-time Farm		Ag. Storage and Processing		Other		Total
	(in thousands)
Internally Assigned Risk Rating(1)
Acceptable	$	1,033,002	$	484,601	$	521,341	$	161,361	$	66,106	$	2,594	$	2,269,005
Special mention(2)	68,372		22,909		35,618		1,612		—		—		128,511
Substandard(3)	56,307		6,595		34,625		5,128		—		222		102,877
Total	$	1,157,681	$	514,105	$	591,584	$	168,101	$	66,106	$	2,816	$	2,500,393
Commodity analysis of past due loans(1)	$	1,493	$	196	$	1,066	$	480	$	—	$	—	$	3,235

(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.

XML

Notes Payable

9 Months Ended

Sep. 30, 2020

Debt Disclosure [Abstract]

NOTES PAYABLE

NOTES PAYABLE

Farmer 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 September 30, 2020 and December 31, 2019:

Table 7.1

	September 30, 2020
	Outstanding as of September 30				Average Outstanding During the First Nine Months
	Amount		Weighted- Average Rate		Amount		Weighted- Average Rate
	(dollars in thousands)
Due within one year:
Discount notes	$	2,358,943	0.21	%	$	2,313,477	0.79	%
Medium-term notes	2,065,148		0.27	%	1,312,909		0.81	%
Current portion of medium-term notes	6,510,992		0.90	%
Total due within one year	$	10,935,083	0.63	%
Due after one year:
Medium-term notes due in:
Two years	$	3,277,494	0.96	%
Three years	2,326,812		1.44	%
Four years	1,056,062		1.73	%
Five years	1,242,150		1.35	%
Thereafter	2,751,684		2.07	%
Total due after one year	10,654,202		1.47	%
Total	$	21,589,285	1.05	%

	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 nine months ended September 30, 2020, Farmer Mac 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 nine months ended September 30, 2020 and 2019 was $2.6 billion and $2.2 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 September 30, 2020:

Table 7.2

Debt Callable in 2020 as of September 30, 2020, by Maturity
	Amount		Weighted-Average Rate
	(dollars in thousands)
Maturity:
2021	$	215,949	0.17	%
2022	122,918		0.59	%
2023	127,863		0.47	%
2024	59,941		1.33	%
Thereafter	374,144		1.84	%
Total	$	900,815	1.04	%

The following schedule summarizes the earliest interest rate reset date, or debt maturities, of total borrowings outstanding as of September 30, 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	$	10,523,446	0.31	%
2021	3,219,231		1.55	%
2022	1,787,566		1.59	%
2023	2,026,445		1.62	%
2024	919,753		1.77	%
Thereafter	3,112,844		2.09	%
Total	$	21,589,285	1.05	%

During the nine months ended September 30, 2020 and 2019, Farmer Mac called $2.7 billion and $0.7 billion of callable medium-term notes, respectively. The decrease in market interest rates throughout 2019 and continuing into the first half of 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, upon satisfying certain conditions, 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 September 30, 2020, Farmer Mac had not used this borrowing authority.

Gains on Repurchase of Outstanding Debt

No outstanding debt repurchases were made in the nine months ended September 30, 2020 or 2019.

XML

Equity

9 Months Ended

Sep. 30, 2020

Equity [Abstract]

EQUITY

EQUITY

Preferred Stock

On August 20, 2020, Farmer Mac issued 4.8 million shares of 5.250% Non-Cumulative Preferred Stock, Series F ("Series F Preferred Stock"), which has a par value and liquidation preference of $25.00 per share, or $120.0 million aggregate outstanding. Farmer Mac incurred direct costs of $3.8 million related to the issuance of the Series F Preferred Stock. The dividend rate on the Series F Preferred Stock will remain at a non-cumulative, fixed rate of 5.250% per year, when, as, and if a dividend is declared by the Board of Directors of Farmer Mac, for so long as the Series F Preferred Stock remains outstanding. The Series F Preferred Stock has no maturity date, but Farmer Mac has the option to redeem the Series F Preferred Stock at any time on any dividend payment date on and after October 17, 2025.

On September 19, 2020, Farmer Mac used part of the net proceeds from the sale of the Series F Preferred Stock to redeem and repurchase all $60.0 million aggregate outstanding of Farmer Mac's 5.875% Non-Cumulative Preferred Stock, Series A ("Series A Preferred Stock"), plus any declared and unpaid dividends through and including the redemption date. As a result of the retirement of the Series A Preferred Stock, Farmer Mac recognized $1.7 million of deferred issuance costs, which is presented as "Loss on retirement of preferred stock" on the consolidated statements of operations.

In May 2020, Farmer Mac issued 3.18 million shares of 5.750% Non-Cumulative Preferred Stock, Series E ("Series E Preferred Stock"), which has a par value and liquidation preference of $25.00 per share, or $79.5 million aggregate outstanding. Farmer Mac incurred direct costs of $2.5 million related to the issuance of the Series E Preferred Stock. The dividend rate on the Series E Preferred Stock will remain at a non-cumulative, fixed rate of 5.750% per year, when, as, and if a dividend is declared by the Board of Directors of Farmer Mac, for so long as the Series E Preferred Stock remains outstanding. The Series E Preferred Stock has no maturity date, but Farmer Mac has the option to redeem the preferred stock at any time on any dividend payment date on and after July 17, 2025.

Common Stock

During each of the first, second, and third quarters in 2020, Farmer Mac paid a quarterly dividend of $0.80 per share on all classes of its common stock. For each quarter in 2019, Farmer Mac paid a quarterly dividend of $0.70 per share on all classes of its common stock.

Farmer Mac's board of directors approved a share repurchase program during third quarter 2015 authorizing Farmer Mac to repurchase up to $25.0 million of its outstanding Class C non-voting common stock. The share repurchase program, last modified on March 14, 2019, authorized Farmer Mac to repurchase up to $10.0 million of Farmer Mac's outstanding Class C non-voting common stock. During first quarter 2020, Farmer Mac repurchased approximately 4,000 shares of Class C non-voting common stock at a cost of approximately $0.2 million. Shortly after these repurchases were completed, Farmer Mac indefinitely suspended its share repurchase program in an effort to preserve capital and liquidity in view of market volatility and uncertainty caused by the COVID-19 pandemic. As of September 30, 2020, Farmer Mac had repurchased approximately 673,000 shares of Class C non-voting common stock at a cost of approximately $19.8 million under the share repurchase program since 2015. The program expires at the end of March 2021.

Capital Requirements

Farmer Mac is required to comply with the higher of the minimum capital requirement and the risk-based capital requirement. As of both September 30, 2020 and December 31, 2019, the minimum capital requirement was greater than the risk-based capital requirement. Farmer Mac's ability to declare and pay dividends could be restricted if it fails to comply with applicable capital requirements.

As of September 30, 2020, Farmer Mac's minimum capital requirement was $670.0 million and its core capital level was $984.2 million, which was $314.2 million above the minimum capital requirement as of that date. As of December 31, 2019, Farmer Mac's minimum capital requirement was $618.8 million and its core capital level was $815.4 million, which was $196.6 million above the minimum capital requirement as of that date.

In accordance with the Farm Credit Administration's rule on Farmer Mac's capital planning, and as part of Farmer Mac's capital plan, Farmer Mac has adopted a policy for maintaining a sufficient level of Tier 1 capital (consisting of retained earnings, paid-in-capital, common stock, and qualifying preferred stock) and imposing restrictions on Tier 1-eligible dividends and any discretionary bonus payments in the event that this capital falls below specified thresholds.

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Fair Value Disclosures

9 Months Ended

Sep. 30, 2020

Fair Value Disclosures [Abstract]

FAIR VALUE DISCLOSURES

FAIR VALUE DISCLOSURES

Fair Value Classification and Transfers

The following tables present information about Farmer Mac's assets and liabilities measured at fair value on a recurring basis as of September 30, 2020 and December 31, 2019, respectively, and indicate the fair value hierarchy of the valuation techniques used by Farmer Mac to determine such fair value:

Table 9.1

Assets and Liabilities Measured at Fair Value as of September 30, 2020
	Level 1		Level 2		Level 3(1)		Total
	(in thousands)
Recurring:
Assets:
Investment Securities:
Available-for-sale:
Floating rate auction-rate certificates backed by Government guaranteed student loans	$	—	$	—	$	19,072	$	19,072
Floating rate asset-backed securities	—		9,201		—		9,201
Floating rate Government/GSE guaranteed mortgage-backed securities	—		2,286,033		—		2,286,033
Fixed rate GSE guaranteed mortgage-backed securities	—		318		—		318
Fixed rate U.S. Treasuries	1,217,566		—		—		1,217,566
Total Investment Securities	1,217,566		2,295,552		19,072		3,532,190
Farmer Mac Guaranteed Securities:
Available-for-sale:
AgVantage	—		—		7,511,638		7,511,638
Total Farmer Mac Guaranteed Securities	—		—		7,511,638		7,511,638
USDA Securities:
Trading	—		—		6,830		6,830
Total USDA Securities	—		—		6,830		6,830
Financial derivatives	9		12,828		—		12,837
Total Assets at fair value	$	1,217,575	$	2,308,380	$	7,537,540	$	11,063,495
Liabilities:
Financial derivatives	$	—	$	37,357	$	—	$	37,357
Total Liabilities at fair value	$	—	$	37,357	$	—	$	37,357
Non-recurring:
Assets
Loans held for sale	$	—	$	—	$	22,086	$	22,086
Total non-recurring assets at fair value	$	—	$	—	$	22,086	$	22,086

(1) Level 3 assets represent 32% of total assets and 68% of financial instruments measured at fair value.

Assets and Liabilities Measured at Fair Value as of December 31, 2019
	Level 1		Level 2		Level 3(1)		Total
	(in thousands)
Recurring:
Assets:
Investment Securities:
Available-for-sale:
Floating rate auction-rate certificates backed by Government guaranteed student loans	$	—	$	—	$	18,912	$	18,912
Floating rate asset-backed securities	—		11,085		—		11,085
Floating rate Government/GSE guaranteed mortgage-backed securities	—		1,632,583		—		1,632,583
Fixed rate GSE guaranteed mortgage-backed securities	—		340		—		340
Fixed rate U.S. Treasuries	1,296,923		—		—		1,296,923
Total available-for-sale	1,296,923		1,644,008		18,912		2,959,843
Farmer Mac Guaranteed Securities:
Available-for-sale:
AgVantage	—		—		7,143,025		7,143,025
Total Farmer Mac Guaranteed Securities	—		—		7,143,025		7,143,025
USDA Securities:
Trading	—		—		8,913		8,913
Total USDA Securities	—		—		8,913		8,913
Financial derivatives	—		10,519		—		10,519
Total Assets at fair value	$	1,296,923	$	1,654,527	$	7,170,850	$	10,122,300
Liabilities:
Financial derivatives	$	51	$	26,991	$	—	$	27,042
Total Liabilities at fair value	$	51	$	26,991	$	—	$	27,042

(1) Level 3 assets represent 33% of total assets and 71% of financial instruments measured at fair value.

There were no significant assets or liabilities measured at fair value on a non-recurring basis as of September 30, 2020 or December 31, 2019.

Transfers in and/or out of the different levels within the fair value hierarchy are based on the fair values of the assets and liabilities as of the beginning of the reporting period. During the first nine months of 2020 and 2019, there were no transfers within the fair value hierarchy for fair value measurements of Farmer Mac's investment securities, Farmer Mac Guaranteed Securities, USDA Securities, and financial derivatives.

The following tables present additional information about assets and liabilities measured at fair value on a recurring basis for which Farmer Mac has used significant unobservable inputs to determine fair value. Net transfers in and/or out of Level 3 are based on the fair values of the assets and liabilities as of the beginning of the reporting period. There were no liabilities measured at fair value using significant unobservable inputs during the three and nine months ended September 30, 2020 and 2019.

Table 9.2

Level 3 Assets and Liabilities Measured at Fair Value for the Three Months Ended September 30, 2020
	Beginning Balance		Purchases		Sales		Settlements		Allowance for losses		Realized and unrealized gains/(losses) included in Income		Unrealized gains/(losses) included in Other Comprehensive Income		Ending Balance
	(in thousands)
Recurring:
Assets:
Investment Securities:
Available-for-sale:
Floating rate auction-rate certificates backed by Government guaranteed student loans	$	18,283	$	—	$	—	$	—	$	1	$	—	$	788	$	19,072
Total available-for-sale	18,283		—		—		—		1		—		788		19,072
Farmer Mac Guaranteed Securities:
Available-for-sale:
AgVantage	7,898,387		122,892		—		(513,864)		(96)		(41,832)		46,151		7,511,638
Total available-for-sale	7,898,387		122,892		—		(513,864)		(96)		(41,832)		46,151		7,511,638
USDA Securities:
Trading	7,786		—		—		(697)		—		(259)		—		6,830
Total USDA Securities	7,786		—		—		(697)				(259)		—		6,830
Total Assets at fair value	$	7,924,456	$	122,892	$	—	$	(514,561)	$	(95)	$	(42,091)	$	46,939	$	7,537,540

Level 3 Assets and Liabilities Measured at Fair Value for the Three Months Ended September 30, 2019
	Beginning Balance		Purchases		Sales		Settlements		Realized and unrealized gains/(losses) included in Income		Unrealized gains/(losses) included in Other Comprehensive Income		Ending Balance
	(in thousands)
Recurring:
Assets:
Investment Securities:
Available-for-sale:
Floating rate auction-rate certificates backed by Government guaranteed student loans	$	19,208	$	—	$	—	$	—	$	—	$	—	$	19,208
Total available-for-sale	19,208		—		—		—		—		—		19,208
Farmer Mac Guaranteed Securities:
Available-for-sale:
AgVantage	7,035,668		340,148		—		(254,593)		84,164		(22,846)		7,182,541
Total available-for-sale	7,035,668		340,148		—		(254,593)		84,164		(22,846)		7,182,541
USDA Securities:
Available-for-sale	—		9,506		(9,506)		—		—		—		—
Trading	9,201		—		—		(307)		49		—		8,943
Total USDA Securities	9,201		9,506		(9,506)		(307)		49		—		8,943
Total Assets at fair value	$	7,064,077	$	349,654	$	(9,506)	$	(254,900)	$	84,213	$	(22,846)	$	7,210,692

Level 3 Assets and Liabilities Measured at Fair Value for the Nine Months Ended September 30, 2020
	Beginning Balance		Purchases		Sales		Settlements		Allowance for Losses		Realized and unrealized gains/(losses) included in Income		Unrealized gains/(losses) included in Other Comprehensive Income		Ending Balance
	(in thousands)
Recurring:
Assets:
Investment Securities:
Available-for-sale:
Floating rate auction-rate certificates backed by Government guaranteed student loans	$	18,912	$	—	$	—	$	—	$	(37)	$	—	$	197	$	19,072
Total available-for-sale	18,912		—		—		—		(37)		—		197		19,072
Farmer Mac Guaranteed Securities:
Available-for-sale:
AgVantage	7,143,025		958,368		—		(826,380)		(330)		257,597		(20,642)		7,511,638
Total available-for-sale	7,143,025		958,368		—		(826,380)		(330)		257,597		(20,642)		7,511,638
USDA Securities:
Trading	8,913		—		—		(1,910)		—		(173)		—		6,830
Total USDA Securities	8,913		—		—		(1,910)				(173)		—		6,830
Total Assets at fair value	$	7,170,850	$	958,368	$	—	$	(828,290)	$	(367)	$	257,424	$	(20,445)	$	7,537,540

Level 3 Assets and Liabilities Measured at Fair Value for the Nine Months Ended September 30, 2019
	Beginning Balance		Purchases		Sales		Settlements		Realized and unrealized gains/(losses) included in Income		Unrealized gains/(losses) included in Other Comprehensive Income		Ending Balance
	(in thousands)
Recurring:
Assets:
Investment Securities:
Available-for-sale:
Floating rate auction-rate certificates backed by Government guaranteed student loans	$	18,715	$	—	$	—	$	—	$	—	$	493	$	19,208
Total available-for-sale	18,715		—		—		—		—		493		19,208
Farmer Mac Guaranteed Securities:
Available-for-sale:
AgVantage	5,974,497		1,730,244		—		(724,906)		258,155		(55,449)		7,182,541
Total available-for-sale	5,974,497		1,730,244		—		(724,906)		258,155		(55,449)		7,182,541
USDA Securities:
Available-for-sale	—		57,853		(57,853)		—		—		—		—
Trading	9,999		—		—		(1,210)		154		—		8,943
Total USDA Securities	9,999		57,853		(57,853)		(1,210)		154		—		8,943
Total Assets at fair value	$	6,003,211	$	1,788,097	$	(57,853)	$	(726,116)	$	258,309	$	(54,956)	$	7,210,692

The following tables present additional information about the significant unobservable inputs, such as discount rates and constant prepayment rates ("CPR"), used in the fair value measurements categorized in Level 3 of the fair value hierarchy as of September 30, 2020 and December 31, 2019:

Table 9.3

	As of September 30, 2020
Financial Instruments	Fair Value		Valuation Technique	Unobservable Input	Range (Weighted-Average)
	(in thousands)
Assets:
Investment securities:
Floating rate auction-rate certificates backed by Government guaranteed student loans	$	19,072	Indicative bids	Range of broker quotes	97.0% - 97.0% (97.0%)
Farmer Mac Guaranteed Securities:
AgVantage	$	7,511,638	Discounted cash flow	Discount rate	0.8% - 2.3% (1.2%)
USDA Securities	$	6,830	Discounted cash flow	Discount rate	1.3% - 3.3% (2.6%)
				CPR	23% - 49% (43%)

	As of December 31, 2019
Financial Instruments	Fair Value		Valuation Technique	Unobservable Input	Range (Weighted-Average)
	(in thousands)
Assets:
Investment securities:
Floating rate auction-rate certificates backed by Government guaranteed student loans	$	18,912	Indicative bids	Range of broker quotes	96.0% - 96.0% (96.0%)
Farmer Mac Guaranteed Securities:
AgVantage	$	7,143,025	Discounted cash flow	Discount rate	2.3% - 5.5% (2.6%)
USDA Securities	$	8,913	Discounted cash flow	Discount rate	2.3% - 2.6% (2.1%)
				CPR	10% - 21% (19%)

The significant unobservable input used in the fair value measurements of AgVantage Farmer Mac Guaranteed Securities is the discount rate commensurate with the risks involved. Typically, significant increases (decreases) in this input in isolation may result in materially lower (higher) fair value measurements. Generally, in a rising interest rate environment, Farmer Mac would expect average discount rates to increase. Conversely, in a declining interest rate environment, Farmer Mac would expect average discount rates to decrease. Prepayment rates are not presented in the table above for AgVantage securities because they generally have fixed maturity dates when the secured general obligations are due and don't prepay.

The significant unobservable inputs used in the fair value measurements of USDA Securities are the prepayment rate and discount rate commensurate with the risks involved. Typically, significant increases (decreases) in any of these inputs in isolation may result in materially lower (higher) fair value measurements. Generally, in a rising interest rate environment, Farmer Mac would expect average discount rates to increase and would likely expect a corresponding decrease in forecasted prepayment rates. Conversely, in a declining interest rate environment, Farmer Mac would expect average discount rates to decrease and would likely expect a corresponding increase in forecasted prepayment rates.

Disclosures on Fair Value of Financial Instruments

The following table sets forth the estimated fair values and carrying values for financial assets, liabilities, and guarantees and commitments as of September 30, 2020 and December 31, 2019:

Table 9.4

	As of September 30, 2020				As of December 31, 2019
	Fair Value		Carrying Amount		Fair Value		Carrying Amount
	(in thousands)
Financial assets:
Cash and cash equivalents	$	910,592	$	910,592	$	604,381	$	604,381
Investment securities	3,578,375		3,577,222		3,005,828		3,004,875
Farmer Mac Guaranteed Securities	8,739,103		8,712,208		8,606,451		8,590,476
USDA Securities	2,522,001		2,417,678		2,294,671		2,241,073
Loans	8,450,522		8,105,647		7,317,091		6,981,440
Financial derivatives	12,837		12,837		10,519		10,519
Guarantee and commitment fees receivable	34,801		36,664		36,732		38,442
Financial liabilities:
Notes payable	21,893,043		21,589,285		19,234,079		19,098,648
Debt securities of consolidated trusts held by third parties	1,337,741		1,292,416		1,663,177		1,616,504
Financial derivatives	37,357		37,357		27,042		27,042
Guarantee and commitment obligations	33,278		35,140		34,990		36,700

The carrying value of cash and cash equivalents is a reasonable estimate of their approximate fair value and is classified as Level 1. The fair value of investments in U.S. Treasuries are valued based on unadjusted quoted prices in active markets and are classified as Level 1. A significant portion of Farmer Mac's investment portfolio is valued using a reputable nationally recognized third-party pricing service. The prices obtained are non-binding and generally representative of recent market trades and are classified as Level 2. Farmer Mac internally models the fair value of its loan portfolio, including loans held for investment and loans held for investment in consolidated trusts, Farmer Mac Guaranteed Securities, and USDA Securities by discounting the projected cash flows of these instruments at projected interest rates. The fair values are based on the present value of expected cash flows using management's best estimate of certain key assumptions, which include prepayment speeds, forward yield curves and discount rates commensurate with the risks involved. These fair value measurements do not take into consideration the fair value of the underlying property and are classified as Level 3. Financial derivatives primarily are valued using unadjusted counterparty valuations and are classified as Level 2. The fair value of the guarantee fees receivable/obligation and debt securities of consolidated trusts are estimated based on the present value of expected future cash flows of the underlying mortgage assets using management's best estimate of certain key assumptions, which include prepayments speeds, forward yield curves, and discount rates commensurate with the risks involved and are classified as Level 3. Notes payable are valued by discounting the expected cash flows of these instruments using a yield curve derived from market prices observed for similar agency securities and are also classified as Level 3. Because the cash flows of Farmer Mac's financial instruments may be interest rate path dependent, estimated fair values and projected discount rates for Level 3 financial instruments are derived using a Monte Carlo simulation model. Different market assumptions and estimation methodologies could significantly affect estimated fair value amounts.

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Business Segment Reporting

9 Months Ended

Sep. 30, 2020

Segment Reporting [Abstract]

BUSINESS SEGMENT REPORTING

BUSINESS SEGMENT REPORTING

The following tables present core earnings for Farmer Mac's operating segments and a reconciliation to consolidated net income for the three and nine months ended September 30, 2020 and 2019:

Table 10.1

Core Earnings by Business Segment
For the Three Months Ended September 30, 2020
	Farm & Ranch		USDA Guarantees		Rural  Utilities		Institutional Credit		Corporate		Reconciling Adjustments			Consolidated Net Income
	(in thousands)
Net interest income	$	18,093	$	4,747	$	5,709	$	14,171	$	1,941	$	—		$	44,661
Less: reconciling adjustments(1)(2)(3)	(68)		1,118		1,230		4,430		431		(7,141)			—
Net effective spread	18,025		5,865		6,939		18,601		2,372		(7,141)			—
Guarantee and commitment fees(2)	4,111		213		328		7		—		(1,500)			3,159
Other income/(expense)(3)	443		135		—		—		(125)		(681)			(228)
Non-interest income/(loss)	4,554		348		328		7		(125)		(2,181)			2,931
Release of/(provision for) losses	300		—		(1,182)		228		1		—			(653)
(Provision for)/release of reserve for losses	(628)		—		81		—		—		—			(547)
Other non-interest expense	(5,381)		(1,643)		(1,438)		(2,160)		(3,938)		—			(14,560)
Non-interest expense(4)	(6,009)		(1,643)		(1,357)		(2,160)		(3,938)		—			(15,107)
Core earnings before income taxes	16,870		4,570		4,728		16,676		(1,690)		(9,322)		(5)	31,832
Income tax (expense)/benefit	(3,543)		(960)		(993)		(3,502)		701		1,957			(6,340)
Core earnings before preferred stock dividends	13,327		3,610		3,735		13,174		(989)		(7,365)		(5)	25,492
Preferred stock dividends	—		—		—		—		(5,166)		—			(5,166)
Loss on retirement of preferred stock	—		—		—		—		—		(1,667)			(1,667)
Segment core earnings/(losses)	$	13,327	$	3,610	$	3,735	$	13,174	$	(6,155)	$	(9,032)	(5)	$	18,659
Total assets at carrying value	$	5,961,307	$	2,487,687	$	2,256,011	$	8,716,923	$	4,576,909	$	—		$	23,998,837
Total on- and off-balance sheet program assets at principal balance	$	8,249,349	$	2,735,128	$	2,685,309	$	8,319,502	$	—	$	—		$	21,989,288

(1)Includes the amortization of premiums and discounts on assets consolidated at fair value, originally included in interest income, to reflect core earnings amounts.

(2)Includes the reclassification of interest income and interest expense from consolidated trusts owned by third parties to guarantee and commitment fees, to reflect management's view that the net interest income Farmer Mac earns is effectively a guarantee fee.

(3)Includes the reclassification of interest expense related to interest rate swaps not designated as hedges, which are included in "(Losses)/gains on financial derivatives" on the consolidated financial statements, to determine the effective funding cost for each operating segment.

(4)Includes directly attributable costs and an allocation of indirectly attributable costs based on employee headcount.

(5)Net adjustments to reconcile to the corresponding income measures: core earnings before income taxes reconciled to income before income taxes; core earnings before preferred stock dividends reconciled to net income; and segment core earnings reconciled to net income attributable to common stockholders.

Core Earnings by Business Segment
For the Three Months Ended September 30, 2019
	Farm & Ranch		USDA Guarantees		Rural  Utilities		Institutional Credit		Corporate		Reconciling Adjustments			Consolidated Net Income
	(in thousands)
Net interest income	$	15,345	$	4,491	$	2,602	$	14,853	$	2,821	$	—		$	40,112
Less: reconciling adjustments(1)(2)(3)	(2,164)		(177)		1,900		2,954		(164)		(2,349)			—
Net effective spread	13,181		4,314		4,502		17,807		2,657		(2,349)			—
Guarantee and commitment fees(2)	4,523		250		348		87		—		(1,859)			3,349
Other income/(expense)(3)	390		92		17		—		(110)		(7,170)			(6,781)
Non-interest income/(loss)	4,913		342		365		87		(110)		(9,029)			(3,432)
Provision for loan losses	(760)		—		—		—		—		—			(760)
Release of reserve for losses	137		—		—		—		—		—			137
Other non-interest expense	(5,062)		(1,506)		(913)		(2,277)		(3,837)		—			(13,595)
Non-interest expense(4)	(4,925)		(1,506)		(913)		(2,277)		(3,837)		—			(13,458)
Core earnings before income taxes	12,409		3,150		3,954		15,617		(1,290)		(11,378)		(5)	22,462
Income tax (expense)/benefit	(2,606)		(662)		(830)		(3,280)		360		2,389			(4,629)
Core earnings before preferred stock dividends	9,803		2,488		3,124		12,337		(930)		(8,989)		(5)	17,833
Preferred stock dividends	—		—		—		—		(3,427)		—			(3,427)
Segment core earnings/(losses)	$	9,803	$	2,488	$	3,124	$	12,337	$	(4,357)	$	(8,989)	(5)	$	14,406
Total assets at carrying value	$	4,934,887	$	2,238,558	$	1,692,835	$	8,651,264	$	3,797,690	$	—		$	21,315,234
Total on- and off-balance sheet program assets at principal balance	$	7,393,728	$	2,567,763	$	2,232,602	$	8,738,266	$	—	$	—		$	20,932,359

(1)Includes the amortization of premiums and discounts on assets consolidated at fair value, originally included in interest income, to reflect core earnings amounts.

(2)Includes the reclassification of interest income and interest expense from consolidated trusts owned by third parties to guarantee and commitment fees, to reflect management's view that the net interest income Farmer Mac earns is effectively a guarantee fee.

(3)Includes the reclassification of interest expense related to interest rate swaps not designated as hedges, which are included in "(Losses)/gains on financial derivatives" on the consolidated financial statements, to determine the effective funding cost for each operating segment.

(4)Includes directly attributable costs and an allocation of indirectly attributable costs based on employee headcount.

(5)Net adjustments to reconcile to the corresponding income measures: core earnings before income taxes reconciled to income before income taxes; core earnings before preferred stock dividends reconciled to net income; and segment core earnings reconciled to net income attributable to common stockholders.

Core Earnings by Business Segment
For the Nine Months Ended September 30, 2020
	Farm & Ranch		USDA Guarantees		Rural  Utilities		Institutional Credit		Corporate		Reconciling Adjustments			Consolidated Net Income
	(in thousands)
Net interest income	$	53,768	$	14,691	$	12,778	$	48,059	$	5,025	$	—		$	134,321
Less: reconciling adjustments(1)(2)(3)	(4,072)		488		4,597		7,026		74		(8,113)			—
Net effective spread	49,696		15,179		17,375		55,085		5,099		(8,113)			—
Guarantee and commitment fees(2)	12,822		658		995		23		—		(5,003)			9,495
Other income/(expense)(3)	2,197		864		12		—		(413)		(3,048)			(388)
Non-interest income/(loss)	15,019		1,522		1,007		23		(413)		(8,051)			9,107
(Release of)/provision for losses	412		—		(4,704)		(222)		(28)		—			(4,542)
Provision for reserve for losses	(262)		—		(278)		—		—		—			(540)
Other non-interest expense	(16,632)		(5,045)		(4,428)		(6,606)		(12,171)		—			(44,882)
Non-interest expense(4)	(16,894)		(5,045)		(4,706)		(6,606)		(12,171)		—			(45,422)
Core earnings before income taxes	48,233		11,656		8,972		48,280		(7,513)		(16,164)		(5)	93,464
Income tax (expense)/benefit	(10,129)		(2,448)		(1,884)		(10,139)		1,689		3,395			(19,516)
Core earnings before preferred stock dividends	38,104		9,208		7,088		38,141		(5,824)		(12,769)		(5)	73,948
Preferred stock dividends	—		—		—		—		(12,536)		—			(12,536)
Loss on retirement of preferred stock	—		—		—		—		—		(1,667)			(1,667)
Segment core earnings/(losses)	$	38,104	$	9,208	$	7,088	$	38,141	$	(18,360)	$	(14,436)	(5)	$	59,745
Total assets at carrying value	$	5,961,307	$	2,487,687	$	2,256,011	$	8,716,923	$	4,576,909	$	—		$	23,998,837
Total on- and off-balance sheet program assets at principal balance	$	8,249,349	$	2,735,128	$	2,685,309	$	8,319,502	$	—	$	—		$	21,989,288

(1)Includes the amortization of premiums and discounts on assets consolidated at fair value, originally included in interest income, to reflect core earnings amounts.

(2)Includes the reclassification of interest income and interest expense from consolidated trusts owned by third parties to guarantee and commitment fees, to reflect management's view that the net interest income Farmer Mac earns is effectively a guarantee fee.

(3)Includes the reclassification of interest expense related to interest rate swaps not designated as hedges, which are included in "(Losses)/gains on financial derivatives" on the consolidated financial statements, to determine the effective funding cost for each operating segment.

(4)Includes directly attributable costs and an allocation of indirectly attributable costs based on employee headcount.

(5)Net adjustments to reconcile to the corresponding income measures: core earnings before income taxes reconciled to income before income taxes; core earnings before preferred stock dividends reconciled to net income; and segment core earnings reconciled to net income attributable to common stockholders.

Core Earnings by Business Segment
For the Nine Months Ended September 30, 2019
	Farm & Ranch		USDA Guarantees		Rural  Utilities		Institutional Credit		Corporate		Reconciling Adjustments			Consolidated Net Income
	(in thousands)
Net interest income	$	46,424	$	13,045	$	6,264	$	49,425	$	8,607	$	—		$	123,765
Less: reconciling adjustments(1)(2)(3)	(7,171)		(670)		5,467		2,126		(900)		1,148			—
Net effective spread	39,253		12,375		11,731		51,551		7,707		1,148			—
Guarantee and commitment fees(2)	13,861		712		1,069		261		—		(5,638)			10,265
Other income/(expense)(3)	1,058		92		31		—		494		1,050			2,725
Non-interest income/(loss)	14,919		804		1,100		261		494		(4,588)			12,990
Provision for loan losses	(1,074)		—		—		—		—		—			(1,074)
Release of reserve for losses	424		—		—		—		—		—			424
Other non-interest expense	(14,448)		(4,279)		(2,595)		(6,470)		(10,903)		—			(38,695)
Non-interest expense(4)	(14,024)		(4,279)		(2,595)		(6,470)		(10,903)		—			(38,271)
Core earnings before income taxes	39,074		8,900		10,236		45,342		(2,702)		(3,440)		(5)	97,410
Income tax (expense)/benefit	(8,206)		(1,870)		(2,149)		(9,522)		663		722			(20,362)
Core earnings before preferred stock dividends	30,868		7,030		8,087		35,820		(2,039)		(2,718)		(5)	77,048
Preferred stock dividends	—		—		—		—		(10,508)		—			(10,508)
Loss on retirement of preferred stock	—		—		—		—		—		(1,956)			(1,956)
Segment core earnings/(losses)	$	30,868	$	7,030	$	8,087	$	35,820	$	(12,547)	$	(4,674)	(5)	$	64,584
Total assets at carrying value	$	4,934,887	$	2,238,558	$	1,692,835	$	8,651,264	$	3,797,690	$	—		$	21,315,234
Total on- and off-balance sheet program assets at principal balance	$	7,393,728	$	2,567,763	$	2,232,602	$	8,738,266	$	—	$	—		$	20,932,359

(1)Includes the amortization of premiums and discounts on assets consolidated at fair value, originally included in interest income, to reflect core earnings amounts.

(2)Includes the reclassification of interest income and interest expense from consolidated trusts owned by third parties to guarantee and commitment fees, to reflect management's view that the net interest income Farmer Mac earns is effectively a guarantee fee.

(3)Includes the reclassification of interest expense related to interest rate swaps not designated as hedges, which are included in "(Losses)/gains on financial derivatives" on the consolidated financial statements, to determine the effective funding cost for each operating segment.

(4)Includes directly attributable costs and an allocation of indirectly attributable costs based on employee headcount.

(5)Net adjustments to reconcile to the corresponding income measures: core earnings before income taxes reconciled to income before income taxes; core earnings before preferred stock dividends reconciled to net income; and segment core earnings reconciled to net income attributable to common stockholders.

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Summary of Significant Accounting Policies (Policies)

9 Months Ended

Sep. 30, 2020

Accounting Policies [Abstract]

Principles of Consolidation

Principles of Consolidation

The consolidated financial statements include the accounts of Farmer Mac and its two subsidiaries during the year: (1) Farmer Mac Mortgage Securities Corporation ("FMMSC"), whose principal activities are to facilitate the purchase and issuance of Farmer Mac Guaranteed Securities; and (2) Farmer Mac II LLC, whose principal activity is the operation of substantially all of the business related to the USDA Guarantees line of business – primarily the acquisition of USDA Securities. The consolidated financial statements also include the accounts of Variable Interest Entities ("VIEs") in which Farmer Mac determined itself to be the primary beneficiary.

Earnings Per Common Share

Earnings Per Common ShareBasic earnings per common share ("EPS") is based on the daily weighted-average number of shares of common stock outstanding.  Diluted earnings per common share is based on the daily weighted-average number of shares of common stock outstanding adjusted to include all potentially dilutive stock appreciation rights ("SARs") and unvested restricted stock awards.

Comprehensive Income

Comprehensive IncomeComprehensive income represents all changes in stockholders' equity except those resulting from investments by or distributions to stockholders, and is comprised of net income and unrealized gains and losses on available-for-sale securities, certain held-to-maturity securities transferred from the available-for-sale classification, and cash flow hedges, net of related taxes.

Allowance for Losses and Reserve for Losses

Allowance for Losses and Reserve for Losses

On January 1, 2020, Farmer Mac adopted Accounting Standards Update 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, ("CECL"). Under CECL, Farmer Mac's allowance for credit losses represents the difference between the carrying amount of the related financial instruments and the present value of their expected cash flows discounted at their effective interest rates, as of the respective balance sheet date. Under CECL, Farmer Mac's reserve for credit losses represents the difference between the outstanding amount of off-balance sheet credit exposures and the present value of their expected cash flows discounted at their effective interest rates.

Farmer Mac maintains an allowance for credit losses to cover current expected credit losses as of the balance sheet date for on-balance sheet investment securities, loans held for investment, and Farmer Mac Guaranteed Securities (collectively referred to as "allowance for losses"). Additionally, Farmer Mac maintains a reserve for credit losses to cover current expected credit losses as of the balance sheet date for off-balance sheet loans underlying LTSPCs and off-balance sheet Farmer Mac Guaranteed Securities (collectively referred to as "reserve for losses"). Both the allowance for losses and reserve for losses are based on historical information and reasonable and supportable forecasts.  

Farmer Mac has never experienced a credit loss in its Rural Utilities line of business. Upon the adoption of CECL, Farmer Mac is now required to measure its expected credit losses for the expected life of all financial instruments, including its Rural Utilities loans. To estimate expected credit losses on these loans, Farmer Mac relies upon industry historical credit loss data from ratings agencies and publicly available information as disclosed in the securities filings of other major lenders who serve the utilities industry.

The allowance for losses increases through periodic provisions for loan losses that are charged against net interest income and the reserve for losses increases through provisions for losses that are charged to non-interest expense. Both the allowance for losses and reserve for losses are decreased by charge-offs for realized losses, net of recoveries.  Releases from the allowance for losses or reserve for losses occur when the estimate of expected credit losses as of the end of a period is less than the estimate at the beginning of the period.

The total allowance for losses consists of the allowance for losses and the reserve for losses.

Charge-offs

Farmer Mac records a charge-off against the allowance for losses principally when a loss has been confirmed through the receipt of assets, generally the underlying collateral, in full satisfaction of the loan. The loss equals the excess of the recorded investment in the loan over the fair value of the collateral less estimated selling costs.

Estimation Methodology

Farmer Mac bases its methodology for determining its current estimate of expected losses on a statistical model, which incorporates credit loss history and reasonable and supportable forecasts. Farmer Mac's estimation methodology is comprised of the following key components:

•An economic model for each portfolio, including Farm & Ranch, Rural Utilities, and Institutional Credit;

•A migration matrix for each portfolio that reasonably predicts the movement of each financial asset among various risk categories over the course of each asset's expected life. The migration matrix forms the basis for our estimate of the probability of default of each financial asset;

•A loss-given-default ("LGD") model that reasonably predicts the amount of loss that Farmer Mac would incur upon the default of each financial asset;

•An economic factor forecast that updates the migration matrix model and the LGD model with current assumptions for the economic indicators that Farmer Mac has determined are most correlated with or relevant to the performance of each portfolio of assets; including Gross Domestic Product ("GDP"), credit spreads, unemployment rates, land values, and commodity prices; and

•A discounted cash flow analysis, which relies upon each of the above model outputs, plus the contractual terms of each financial asset, and the effective interest rate of each financial asset.

Management evaluates these assumptions by considering many relevant factors, including:

•economic conditions;

•geographic and agricultural commodity/product concentrations in the portfolio;

•the credit profile of the portfolio, including risk ratings and financial metrics;

•delinquency trends of the portfolio;

•historical charge-off and recovery activities of the portfolio; and

•other factors to capture current portfolio trends and characteristics that differ from historical experience.

Management believes that its methodology produces a reasonable estimate of expected credit losses, as of the balance sheet date, for the expected life of all of its financial assets.

Allowance for Loss on Available-for-Sale (AFS) Securities

To measure current expected credit losses on impaired AFS securities, Farmer Mac first considers those impaired securities that: 1) Farmer Mac does not intend to sell, and 2) it is not more likely than not that Farmer Mac will be required to sell before recovering its amortized cost basis. In assessing whether a credit loss exists, Farmer Mac compares the present value, discounted at the security's effective interest rate, of cash flows expected to be collected from an impaired AFS debt security to its amortized cost basis. If the present value of cash flows expected to be collected is less than the amortized cost basis of the impaired security, a credit loss exists and Farmer Mac records an allowance for loss for that credit loss. However, the amount of that allowance is limited by the amount that the security’s fair value is less than its amortized cost basis. Accrued interest receivable is recorded separately on the Consolidated Balance Sheet, and the allowance for credit losses excludes uncollectible accrued interest receivable.

Collateral Dependent Assets ("CDAs")

CDAs are loans, loans underlying LTSPCs, or off-balance sheet credit exposures in which the borrower is either in foreclosure or is experiencing financial difficulty and repayment is expected to be provided substantially through the sale or operation of the collateral by Farmer Mac. Farmer Mac estimates the current expected credit loss on CDAs based upon the appraised value of the collateral, the costs to sell it, and any applicable credit protection such as a guarantee.

COVID-19 Payment Deferments

The Coronavirus Aid, Relief, and Economic Security Act ("CARES Act") was signed into law on March 27, 2020. Section 4013 of the CARES Act titled “Temporary Relief from Troubled Debt Restructurings” provides financial institutions the option to temporarily suspend certain requirements under U.S. GAAP related to troubled debt restructurings (“TDRs”) for a limited period of time to account for the effects of the novel coronavirus disease 2019 ("COVID-19"). On April 10, 2020, Farmer Mac’s prudential regulator, the Office of Secondary Market Oversight (OSMO) within the Farm Credit Administration (FCA), issued guidance to Farmer Mac on loan servicing and reporting TDRs for lines of business affected by the COVID-19 outbreak. This guidance was consistent with the guidance provided by other financial regulatory agencies and the Financial Accounting Standards Board that short-term modifications made on a good faith basis in response to the COVID-19 national emergency are not TDRs when the borrower was not past due on loan payments before the March 13, 2020 presidential proclamation declaring the COVID-19 outbreak a national emergency.

During second quarter 2020, Farmer Mac implemented the guidance from FCA by granting up to 6-month payment deferments to borrowers who have been economically impacted by COVID-19. Farmer Mac deems loans under a COVID-19 payment deferment not to be past due and continues to accrue interest on those loans. Furthermore, Farmer Mac does not consider a payment deferment on any such loan to be a troubled debt restructuring. For the purpose of estimating expected credit losses on Farm & Ranch loans held for investment, Farmer Mac does consider payment deferments along with other available credit and economic information that pertains to that portfolio.

New Accounting Standards

New Accounting Standards

Recently Adopted Accounting Guidance

Standard	Description	Date of Adoption	Effect on Consolidated Financial Statements
ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments	This Update required entities to measure all expected credit losses for financial assets held at amortized cost at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts, as well as requiring entities to use forward-looking information to form their credit loss estimates.	January 1, 2020	In first quarter 2020 Farmer Mac adopted the new guidance. The cumulative-effect adjustment to retained earnings as of January 1, 2020 reflected application of the new guidance and did not have a material effect on Farmer Mac's financial position, results of operations, or cash flows. For more information on the transition adjustment see Table 1.5 below.
ASU 2017-08, Receivables - Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities	The amendments in this Update shorten the amortization period for certain callable debt securities held at a premium by requiring the premium to be amortized to the earliest call date. There is no required accounting change for securities held at a discount in this Update.	January 1, 2020	The adoption of this Update did not have a material effect on Farmer Mac's financial position, results of operations, or cash flows.
ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement	The amendments in this Update modify the disclosure requirements on fair value measurements in Topic 820, Fair Value Measurements, including the consideration of costs and benefits. Certain disclosure requirements were either removed, modified, or added.	January 1, 2020	The adoption of this Update did not have a material effect on Farmer Mac's financial position, results of operations, or cash flows.

The following table presents the impact of adopting CECL on January 1, 2020 on our allowance and retained earnings:

Table 1.5

	December 31, 2019		Transition Adjustment		January 1, 2020
	(in thousands)
Allowance:
Farm & Ranch:
Loans	$	10,454	$	(3,909)	$	6,545
Long-term standby purchase commitments and guarantees	2,164		(148)		2,016
Rural Utilities:
Loans	—		5,378		5,378
Long-term standby purchase commitments	—		1,011		1,011
Farmer Mac Guaranteed Securities:
AgVantage	—		315		315
Investment Securities	—		9		9
Total Allowance	$	12,618	$	2,656	$	15,274
Retained Earnings	$	457,047	$	(2,099)	$	454,948

Recently Issued Accounting Guidance, Not Yet Adopted Within Our Consolidated Financial Statements

Standard	Description	Date of Planned Adoption	Effect on Consolidated Financial Statements
ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting	The amendments in this Update provide optional guidance for a limited period of time to ease the potential burden in accounting for reference rate reform on financial reporting. They provide optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met.	The amendments in this Update are effective for all entities as of March 12, 2020 through December 31, 2022.	Farmer Mac is currently evaluating the impact of the discontinuation of LIBOR on the consolidated financial statements and the applicability of the optional guidance provided by this Update.

Reclassifications

ReclassificationsCertain reclassifications of prior period information were made to conform to the current period presentation.

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Summary of Significant Accounting Policies (Tables)

9 Months Ended

Sep. 30, 2020

Accounting Policies [Abstract]

Schedule of Consolidation of Variable Interest Entities

The following tables present, by line of business, details about the consolidation of VIEs:

Table 1.1

	Consolidation of Variable Interest Entities
	As of September 30, 2020
	Farm & Ranch		USDA Guarantees		Corporate		Total
	(in thousands)
On-Balance Sheet:
Consolidated VIEs:
Loans held for investment in consolidated trusts, at amortized cost	$	1,276,407	$	—	$	—	$	1,276,407
Debt securities of consolidated trusts held by third parties (1)	1,292,416		—		—		1,292,416
Unconsolidated VIEs:
Farmer Mac Guaranteed Securities:
Carrying value (2)	—		36,505		—		36,505
Maximum exposure to loss (3)	—		36,414		—		36,414
Investment securities:
Carrying value (4)	—		—		1,835,688		1,835,688
Maximum exposure to loss (3) (4)	—		—		1,829,604		1,829,604
Off-Balance Sheet:
Unconsolidated VIEs:
Farmer Mac Guaranteed Securities:
Maximum exposure to loss (3) (5)	85,767		310,682		—		396,449

(1)Includes borrower remittances of $16.0 million. The borrower remittances had not been passed through to third party investors as of September 30, 2020.

(2)Includes $0.1 million of unamortized premiums and discounts and fair value adjustments related to the USDA Guarantees line of business.

(3)Farmer Mac uses unpaid principal balance and outstanding face amount of investment securities to represent maximum exposure to loss.

(4)Includes auction-rate certificates, asset-backed securities, and government-sponsored enterprise ("GSE")-guaranteed mortgage-backed securities.

(5)The amount under the Farm & Ranch line of business relates to unconsolidated trusts where Farmer Mac determined it was not the primary beneficiary due to shared power with an unrelated party.

	Consolidation of Variable Interest Entities
	As of December 31, 2019
	Farm & Ranch		USDA Guarantees		Corporate		Total
	(in thousands)
On-Balance Sheet:
Consolidated VIEs:
Loans held for investment in consolidated trusts, at amortized cost	$	1,600,917	$	—	$	—	$	1,600,917
Debt securities of consolidated trusts held by third parties (1)	1,616,504		—		—		1,616,504
Unconsolidated VIEs:
Farmer Mac Guaranteed Securities:
Carrying value (2)	—		32,041		—		32,041
Maximum exposure to loss (3)	—		31,887		—		31,887
Investment securities:
Carrying value (4)	—		—		1,117,203		1,117,203
Maximum exposure to loss (3) (4)	—		—		1,120,765		1,120,765
Off-Balance Sheet:
Unconsolidated VIEs:
Farmer Mac Guaranteed Securities:
Maximum exposure to loss (3) (5)	107,322		389,216		—		496,538

(1)Includes borrower remittances of $15.6 million. The borrower remittances had not been passed through to third party investors as of December 31, 2019.

(2)Includes $0.2 million of unamortized premiums and discounts and fair value adjustments related to the USDA Guarantees line of business.

(3)Farmer Mac uses unpaid principal balance and outstanding face amount of investment securities to represent maximum exposure to loss.

(4)Includes auction-rate certificates, asset-backed securities, and government-sponsored enterprise ("GSE")-guaranteed mortgage-backed securities.

(5)The amount under the Farm & Ranch line of business relates to unconsolidated trusts where Farmer Mac determined it was not the primary beneficiary due to shared power with an unrelated party.

Basic and Diluted EPS

The following schedule reconciles basic and diluted EPS for the three and nine months ended September 30, 2020 and 2019:

Table 1.2

	For the Three Months Ended
	September 30, 2020					September 30, 2019
	Net Income		Weighted-Average Shares	$ per Share		Net Income		Weighted-Average Shares	$ per Share
	(in thousands, except per share amounts)
Basic EPS
Net income attributable to common stockholders	$	18,659	10,734	$	1.74	$	14,406	10,706	$	1.34
Effect of dilutive securities(1)
SARs and restricted stock	—		51	(0.01)		—		70	(0.01)
Diluted EPS	$	18,659	10,785	$	1.73	$	14,406	10,776	$	1.33

(1)For the three months ended September 30, 2020 and 2019, SARs and restricted stock of 66,445 and 26,768, respectively, were outstanding but not included in the computation of diluted earnings per share of common stock because they were anti-dilutive. For the three months ended September 30, 2020 and 2019, contingent shares of unvested restricted stock of 12,680 and 8,414, respectively, were outstanding but not included in the computation of diluted earnings per share of common stock because performance conditions had not yet been met.

	For the Nine Months Ended
	September 30, 2020					September 30, 2019
	Net Income		Weighted-Average Shares	$ per Share		Net Income		Weighted-Average Shares	$ per Share
	(in thousands, except per share amounts)
Basic EPS
Net income attributable to common stockholders	$	59,745	10,725	$	5.57	$	64,584	10,691	$	6.04
Effect of dilutive securities(1)
SARs and restricted stock	—		56	(0.03)		—		83	(0.05)
Diluted EPS	$	59,745	10,781	$	5.54	$	64,584	10,774	$	5.99

(1)For the nine months ended September 30, 2020 and 2019, SARs and restricted stock of 78,963 and 48,801, respectively, were outstanding but not included in the computation of diluted earnings per share of common stock because they were anti-dilutive. For the nine months ended September 30, 2020 and 2019, contingent shares of unvested restricted stock of 12,680 and 10,994, respectively, were outstanding but not included in the computation of diluted earnings per share of common stock because performance conditions had not yet been met.

Schedule of Accumulated Other Comprehensive Income, Net of Tax

The following table presents the changes in accumulated other comprehensive income ("AOCI"), net of tax, by component for the three and nine months ended September 30, 2020 and 2019:

Table 1.3

	As of September 30, 2020								As of September 30, 2019
	Available-for-Sale Securities		Held-to-Maturity Securities		Cash Flow Hedges		Total		Available-for-Sale Securities		Held-to-Maturity Securities		Cash Flow Hedges		Total
	(in thousands)
For the Three Months Ended:
Beginning Balance	$	(88,261)	$	26,379	$	(29,615)	$	(91,497)	$	(45,384)	$	38,021	$	(5,480)	$	(12,843)
Other comprehensive income/(loss) before reclassifications	38,099		—		904		39,003		(18,915)		—		(5,071)		(23,986)
Amounts reclassified from AOCI	(783)		(1,993)		1,433		(1,343)		(776)		(5,169)		(250)		(6,195)
Net comprehensive income/(loss)	37,316		(1,993)		2,337		37,660		(19,691)		(5,169)		(5,321)		(30,181)
Ending Balance	$	(50,945)	$	24,386	$	(27,278)	$	(53,837)	$	(65,075)	$	32,852	$	(10,801)	$	(43,024)
For the Nine Months Ended:
Beginning Balance	$	(43,397)	$	32,845	$	(5,609)	$	(16,161)	$	(25,360)	$	43,443	$	6,873	$	24,956
Other comprehensive loss before reclassifications	(5,210)		—		(24,684)		(29,894)		(37,308)		—		(16,679)		(53,987)
Amounts reclassified from AOCI	(2,338)		(8,459)		3,015		(7,782)		(2,407)		(10,591)		(995)		(13,993)
Net comprehensive loss	(7,548)		(8,459)		(21,669)		(37,676)		(39,715)		(10,591)		(17,674)		(67,980)
Ending Balance	$	(50,945)	$	24,386	$	(27,278)	$	(53,837)	$	(65,075)	$	32,852	$	(10,801)	$	(43,024)

Schedule of Reclassification out of Accumulated Other Comprehensive Income

The following table presents other comprehensive income activity, the impact on net income of amounts reclassified from each component of AOCI, and the related tax impact for the three and nine months ended September 30, 2020 and 2019:

Table 1.4

	For the Three Months Ended
	September 30, 2020						September 30, 2019
	Before Tax		Provision (Benefit)		After Tax		Before Tax		Provision (Benefit)		After Tax
	(in thousands)
Other comprehensive income:
Available-for-sale-securities:
Unrealized holding gains/(losses) on available-for-sale securities	$	48,226	$	10,127	$	38,099	$	(23,943)	$	(5,028)	$	(18,915)
Less reclassification adjustments included in:
Net interest income(1)	(976)		(205)		(771)		(961)		(202)		(759)
Other income(2)	(15)		(3)		(12)		(21)		(4)		(17)
Total	$	47,235	$	9,919	$	37,316	$	(24,925)	$	(5,234)	$	(19,691)
Held-to-maturity securities:
Less reclassification adjustments included in:
Net interest income(3)	(2,523)		(530)		(1,993)		(6,543)		(1,374)		(5,169)
Total	$	(2,523)	$	(530)	$	(1,993)	$	(6,543)	$	(1,374)	$	(5,169)
Cash flow hedges
Unrealized gains/(losses) on cash flow hedges	$	1,145	$	241	$	904	$	(6,419)	$	(1,348)	$	(5,071)
Less reclassification adjustments included in:
Net interest income(4)	1,814		381		1,433		(317)		(67)		(250)
Total	$	2,959	$	622	$	2,337	$	(6,736)	$	(1,415)	$	(5,321)
Other comprehensive income/(loss)	$	47,671	$	10,011	$	37,660	$	(38,204)	$	(8,023)	$	(30,181)

(1)Relates to the amortization of unrealized gains on hedged items prior to the application of fair value hedge accounting.

(2)Represents amortization of deferred gains related to certain available-for-sale USDA Securities and Farmer Mac Guaranteed USDA Securities.

(3)Relates to the amortization of unrealized gains or losses prior to the reclassification of these securities from available-for-sale to held-to-maturity. The amortization of unrealized gains or losses reported in AOCI for held-to-maturity securities will be offset by the amortization of the premium or discount created from the transfer into held-to-maturity securities, which occurred at fair value. These unrealized gains or losses will be recorded over the remaining life of the security with no impact on future net income.

(4)Relates to the recognition of unrealized gains and losses on cash flow hedges recorded in AOCI.

	For the Nine Months Ended
	September 30, 2020						September 30, 2019
	Before Tax		Provision (Benefit)		After Tax		Before Tax		Provision (Benefit)		After Tax
	(in thousands)
Other comprehensive income:
Available-for-sale-securities:
Unrealized holding losses on available-for-sale securities	$	(6,596)	$	(1,386)	$	(5,210)	$	(47,225)	$	(9,917)	$	(37,308)
Less reclassification adjustments included in:
Net interest income(1)	(2,916)		(612)		(2,304)		(2,870)		(603)		(2,267)
Other income(2)	(42)		(8)		(34)		(177)		(37)		(140)
Total	$	(9,554)	$	(2,006)	$	(7,548)	$	(50,272)	$	(10,557)	$	(39,715)
Held-to-maturity securities:
Less reclassification adjustments included in:
Net interest income(3)	(10,707)		(2,248)		(8,459)		(13,406)		(2,815)		(10,591)
Total	$	(10,707)	$	(2,248)	$	(8,459)	$	(13,406)	$	(2,815)	$	(10,591)
Cash flow hedges
Unrealized losses on cash flow hedges	$	(31,246)	$	(6,562)	$	(24,684)	$	(21,113)	$	(4,434)	$	(16,679)
Less reclassification adjustments included in:
Net interest income(4)	3,817		802		3,015		(1,260)		(265)		(995)
Total	$	(27,429)	$	(5,760)	$	(21,669)	$	(22,373)	$	(4,699)	$	(17,674)
Other comprehensive loss	$	(47,690)	$	(10,014)	$	(37,676)	$	(86,051)	$	(18,071)	$	(67,980)

(1)Relates to the amortization of unrealized gains on hedged items prior to the application of fair value hedge accounting.

(2)Represents amortization of deferred gains related to certain available-for-sale USDA Securities and Farmer Mac Guaranteed USDA Securities.

(3)Relates to the amortization of unrealized gains or losses prior to the reclassification of these securities from available-for-sale to held-to-maturity. The amortization of unrealized gains or losses reported in AOCI for held-to-maturity securities will be offset by the amortization of the premium or discount created from the transfer into held-to-maturity securities, which occurred at fair value. These unrealized gains or losses will be recorded over the remaining life of the security with no impact on future net income.

(4)Relates to the recognition of unrealized gains and losses on cash flow hedges recorded in AOCI.

Recently Adopted Accounting Guidance and Recently Issued Accounting Guidance, Note Yet Adopted Within Out Consolidated Financial Statements

Recently Adopted Accounting Guidance

Standard	Description	Date of Adoption	Effect on Consolidated Financial Statements
ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments	This Update required entities to measure all expected credit losses for financial assets held at amortized cost at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts, as well as requiring entities to use forward-looking information to form their credit loss estimates.	January 1, 2020	In first quarter 2020 Farmer Mac adopted the new guidance. The cumulative-effect adjustment to retained earnings as of January 1, 2020 reflected application of the new guidance and did not have a material effect on Farmer Mac's financial position, results of operations, or cash flows. For more information on the transition adjustment see Table 1.5 below.
ASU 2017-08, Receivables - Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities	The amendments in this Update shorten the amortization period for certain callable debt securities held at a premium by requiring the premium to be amortized to the earliest call date. There is no required accounting change for securities held at a discount in this Update.	January 1, 2020	The adoption of this Update did not have a material effect on Farmer Mac's financial position, results of operations, or cash flows.
ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement	The amendments in this Update modify the disclosure requirements on fair value measurements in Topic 820, Fair Value Measurements, including the consideration of costs and benefits. Certain disclosure requirements were either removed, modified, or added.	January 1, 2020	The adoption of this Update did not have a material effect on Farmer Mac's financial position, results of operations, or cash flows.

The following table presents the impact of adopting CECL on January 1, 2020 on our allowance and retained earnings:

Table 1.5

	December 31, 2019		Transition Adjustment		January 1, 2020
	(in thousands)
Allowance:
Farm & Ranch:
Loans	$	10,454	$	(3,909)	$	6,545
Long-term standby purchase commitments and guarantees	2,164		(148)		2,016
Rural Utilities:
Loans	—		5,378		5,378
Long-term standby purchase commitments	—		1,011		1,011
Farmer Mac Guaranteed Securities:
AgVantage	—		315		315
Investment Securities	—		9		9
Total Allowance	$	12,618	$	2,656	$	15,274
Retained Earnings	$	457,047	$	(2,099)	$	454,948

Recently Issued Accounting Guidance, Not Yet Adopted Within Our Consolidated Financial Statements

Standard	Description	Date of Planned Adoption	Effect on Consolidated Financial Statements
ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting	The amendments in this Update provide optional guidance for a limited period of time to ease the potential burden in accounting for reference rate reform on financial reporting. They provide optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met.	The amendments in this Update are effective for all entities as of March 12, 2020 through December 31, 2022.	Farmer Mac is currently evaluating the impact of the discontinuation of LIBOR on the consolidated financial statements and the applicability of the optional guidance provided by this Update.

XML

Investment Securities (Tables)

9 Months Ended

Sep. 30, 2020

Investments, Debt and Equity Securities [Abstract]

Schedule of Farmer Mac Investment Securities

The following tables set forth information about Farmer Mac's investment securities as of September 30, 2020 and December 31, 2019:

Table 2.1

	As of September 30, 2020
	Amount Outstanding		Unamortized Premium/(Discount)		Amortized Cost(1)		Allowance for losses(2)		Unrealized Gains		Unrealized Losses		Fair Value
	(in thousands)
Available-for-sale:
Floating rate auction-rate certificates backed by Government guaranteed student loans	$	19,700	$	—	$	19,700	$	(37)	$	—	$	(591)	$	19,072
Floating rate asset-backed securities	9,205		—		9,205		—		—		(4)		9,201
Floating rate Government/GSE guaranteed mortgage-backed securities	2,279,737		33		2,279,770		—		9,415		(3,152)		2,286,033
Fixed rate GSE guaranteed mortgage-backed securities	285		—		285		—		33		—		318
Fixed rate U.S. Treasuries	1,204,308		9,406		1,213,714		—		3,861		(9)		1,217,566
Total available-for-sale	3,513,235		9,439		3,522,674		(37)		13,309		(3,756)		3,532,190
Held-to-maturity:
Floating rate Government/GSE guaranteed mortgage-backed securities(3)	45,032		—		45,032		—		1,153		—		46,185
Total investment securities	$	3,558,267	$	9,439	$	3,567,706	$	(37)	$	14,462	$	(3,756)	$	3,578,375

(1)Amounts presented exclude $5.7 million of accrued interest receivable on investment securities as of September 30, 2020.

(2)Represents the amount of impairment that has resulted from credit-related factors, and therefore was recognized in the consolidated statement of operations as a provision for losses. Amount excludes unrealized losses relating to non-credit factors.

(3)The held-to-maturity investment securities had a weighted average yield of 1.5% as of September 30, 2020.

	As of December 31, 2019
	Amount Outstanding		Unamortized Premium/(Discount)		Amortized Cost		Unrealized Gains		Unrealized Losses		Fair Value
	(in thousands)
Available-for-sale:
Floating rate auction-rate certificates backed by Government guaranteed student loans	$	19,700	$	—	$	19,700	$	—	$	(788)	$	18,912
Floating rate asset-backed securities	11,092		—		11,092		—		(7)		11,085
Floating rate Government/GSE guaranteed mortgage-backed securities	1,633,731		1,174		1,634,905		2,414		(4,736)		1,632,583
Fixed rate GSE guaranteed mortgage-backed securities	315		—		315		25		—		340
Fixed rate U.S. Treasuries	1,295,210		208		1,295,418		1,520		(15)		1,296,923
Total available-for-sale	2,960,048		1,382		2,961,430		3,959		(5,546)		2,959,843
Held-to-maturity:
Floating rate Government/GSE guaranteed mortgage-backed securities(1)	45,032		—		45,032		953		—		45,985
Total investment securities	$	3,005,080	$	1,382	$	3,006,462	$	4,912	$	(5,546)	$	3,005,828

(1)The held-to-maturity investment securities had a weighted average yield of 3.3% as of December 31, 2019.

The following tables set forth information about on-balance sheet Farmer Mac Guaranteed Securities and USDA Securities as of September 30, 2020 and December 31, 2019:

Table 3.1

	As of September 30, 2020
	Unpaid Principal Balance		Unamortized Premium/(Discount)		Amortized Cost(1)		Allowance for losses(2)		Unrealized Gains		Unrealized Losses		Fair Value
	(in thousands)
Held-to-maturity:
AgVantage	$	1,164,353	$	(73)	$	1,164,280	$	(216)	$	25,969	$	(99)	$	1,189,934
Farmer Mac Guaranteed USDA Securities	36,414		92		36,506		—		1,026		(1)		37,531
Total Farmer Mac Guaranteed Securities	1,200,767		19		1,200,786		(216)		26,995		(100)		1,227,465
USDA Securities	2,381,416		29,432		2,410,848		—		105,721		(1,398)		2,515,171
Total held-to-maturity	$	3,582,183	$	29,451	$	3,611,634	$	(216)	$	132,716	$	(1,498)	$	3,742,636
Available-for-sale:
AgVantage	$	7,149,082	$	1,524	$	7,150,606	$	(330)	$	394,280	$	(32,918)	$	7,511,638
Trading:
USDA Securities(3)	$	6,617	$	352	$	6,969	$	—	$	10	$	(149)	$	6,830

(1)Amounts presented exclude $32.7 million, $41.1 million, and $0.1 million of accrued interest receivable on available-for-sale, held-to-maturity, and trading securities, respectively, as of September 30, 2020.

(2)Represents the amount of impairment that has resulted from credit-related factors, and therefore was recognized in the statement of financial operations as a provision for losses. Amount excludes unrealized losses relating to non-credit factors.

(3)The trading USDA securities had a weighted average yield of 5.09% as of September 30, 2020.

	As of December 31, 2019
	Unpaid Principal Balance		Unamortized Premium/(Discount)		Amortized Cost		Unrealized Gains		Unrealized Losses		Fair Value
	(in thousands)
Held-to-maturity:
AgVantage	$	1,415,584	$	(174)	$	1,415,410	$	15,300	$	(164)	$	1,430,546
Farmer Mac Guaranteed USDA Securities	31,887		154		32,041		839		—		32,880
Total Farmer Mac Guaranteed Securities	1,447,471		(20)		1,447,451		16,139		(164)		1,463,426
USDA Securities	2,190,671		41,489		2,232,160		54,356		(758)		2,285,758
Total held-to-maturity	$	3,638,142	$	41,469	$	3,679,611	$	70,495	$	(922)	$	3,749,184
Available-for-sale:
AgVantage	$	7,017,095	$	(124)	$	7,016,971	$	161,316	$	(35,262)	$	7,143,025
Trading:
USDA Securities(1)	$	8,400	$	479	$	8,879	$	61	$	(27)	$	8,913

(1)The trading USDA securities had a weighted average yield of 5.20% as of December 31, 2019.

Schedule of Unrealized Losses on Available-for-Sale Investment Securities

As of September 30, 2020 and December 31, 2019, unrealized losses on available-for-sale investment securities were as follows:

Table 2.2

	As of September 30, 2020
	Available-for-Sale Securities
	Unrealized loss position for less than 12 months				Unrealized loss position for more than 12 months
	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
	(dollars in thousands)
Floating rate auction-rate certificates backed by Government guaranteed student loans	$	—	$	—	$	19,072	$	(591)
Floating rate asset-backed securities	—		—		6,873		(4)
Floating rate Government/GSE guaranteed mortgage-backed securities	154,452		(464)		403,469		(2,688)
Fixed rate U.S. Treasuries	50,861		(9)		—		—
Total	$	205,313	$	(473)	$	429,414	$	(3,283)
Number of securities in loss position			27				63

	As of December 31, 2019
	Available-for-Sale Securities
	Unrealized loss position for less than 12 months				Unrealized loss position for more than 12 months
	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
	(dollars in thousands)
Floating rate auction-rate certificates backed by Government guaranteed student loans	$	—	$	—	$	18,912	$	(788)
Floating rate asset-backed securities	2,583		(1)		8,502		(6)
Floating rate Government/GSE guaranteed mortgage-backed securities	841,993		(2,244)		436,621		(2,492)
Fixed rate U.S. Treasuries	35,107		(15)		—		—
Total	$	879,683	$	(2,260)	$	464,035	$	(3,286)
Number of securities in loss position			57				62

As of September 30, 2020 and December 31, 2019, unrealized losses on held-to-maturity and available-for-sale on-balance sheet Farmer Mac Guaranteed Securities and USDA Securities were as follows:

Table 3.2

	As of September 30, 2020
	Held-to-Maturity and Available-for-Sale Securities
	Unrealized loss position for less than 12 months				Unrealized loss position for more than 12 months
	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
	(in thousands)
Held-to-maturity:
AgVantage	$	49,901	$	(99)	$	—	$	—
Farmer Mac Guaranteed USDA Securities	45		(1)		—		—
USDA Securities	$	—	$	—	$	21,521	$	(1,398)
Total held-to-maturity	$	49,946	$	(100)	$	21,521	$	(1,398)
Available-for-sale:
AgVantage	$	333,544	$	(445)	$	972,161	$	(32,473)

	As of December 31, 2019
	Held-to-Maturity and Available-for-Sale Securities
	Unrealized loss position for less than 12 months				Unrealized loss position for more than 12 months
	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
	(in thousands)
Held-to-maturity:
AgVantage	$	—	$	—	$	301,836	$	(164)
USDA Securities	—		—		27,089		(758)
Total held-to-maturity	$	—	$	—	$	328,925	$	(922)
Available-for-sale:
AgVantage	$	225,239	$	(2,203)	$	1,394,802	$	(33,059)

Schedule of Available-for-Sale Securities Maturities

The amortized cost, fair value, and weighted-average yield of available-for-sale investment securities by remaining contractual maturity as of September 30, 2020 are set forth below. Asset-backed and mortgage-backed securities are included based on their final maturities, although the actual maturities may differ due to prepayments of the underlying assets.

Table 2.3

	As of September 30, 2020
	Available-for-Sale Securities
	Amortized Cost		Fair Value		Weighted- Average Yield
	(dollars in thousands)
Due within one year	$	1,142,369	$	1,146,222	2.01%
Due after one year through five years	361,971		362,065		0.76%
Due after five years through ten years	1,129,147		1,134,255		0.67%
Due after ten years	889,187		889,648		0.69%
Total	$	3,522,674	$	3,532,190	1.12%

The amortized cost, fair value, and weighted-average yield of available-for-sale and held-to-maturity Farmer Mac Guaranteed Securities and USDA Securities by remaining contractual maturity as of September 30, 2020 are set forth below. The balances presented are based on their final maturities, although the actual maturities may differ due to prepayments of the underlying assets.

Table 3.3

	As of September 30, 2020
	Available-for-Sale Securities
	Amortized Cost(1)		Fair Value		Weighted- Average Yield
	(dollars in thousands)
Due within one year	$	1,461,551	$	1,468,084	1.48	%
Due after one year through five years	3,102,003		3,214,595		2.24	%
Due after five years through ten years	1,073,248		1,157,450		2.42	%
Due after ten years	1,513,804		1,671,509		2.57	%
Total	$	7,150,606	$	7,511,638	2.18	%

(1)Amounts presented exclude $32.7 million of accrued interest receivable.

	As of September 30, 2020
	Held-to-Maturity Securities
	Amortized Cost(1)		Fair Value		Weighted- Average Yield
	(dollars in thousands)
Due within one year	$	482,593	$	486,460	2.75	%
Due after one year through five years	765,529		790,138		3.15	%
Due after five years through ten years	226,396		234,799		2.96	%
Due after ten years	2,137,116		2,231,239		3.25	%
Total	$	3,611,634	$	3,742,636	3.11	%

(1)Amounts presented exclude $41.1 million of accrued interest receivable.

XML

Farmer Mac Guaranteed Securities and USDA Securities (Tables)

9 Months Ended

Sep. 30, 2020

Investments, Debt and Equity Securities [Abstract]

Schedule of Farmer Mac Guaranteed Securities and USDA Securities

The following tables set forth information about Farmer Mac's investment securities as of September 30, 2020 and December 31, 2019:

Table 2.1

	As of September 30, 2020
	Amount Outstanding		Unamortized Premium/(Discount)		Amortized Cost(1)		Allowance for losses(2)		Unrealized Gains		Unrealized Losses		Fair Value
	(in thousands)
Available-for-sale:
Floating rate auction-rate certificates backed by Government guaranteed student loans	$	19,700	$	—	$	19,700	$	(37)	$	—	$	(591)	$	19,072
Floating rate asset-backed securities	9,205		—		9,205		—		—		(4)		9,201
Floating rate Government/GSE guaranteed mortgage-backed securities	2,279,737		33		2,279,770		—		9,415		(3,152)		2,286,033
Fixed rate GSE guaranteed mortgage-backed securities	285		—		285		—		33		—		318
Fixed rate U.S. Treasuries	1,204,308		9,406		1,213,714		—		3,861		(9)		1,217,566
Total available-for-sale	3,513,235		9,439		3,522,674		(37)		13,309		(3,756)		3,532,190
Held-to-maturity:
Floating rate Government/GSE guaranteed mortgage-backed securities(3)	45,032		—		45,032		—		1,153		—		46,185
Total investment securities	$	3,558,267	$	9,439	$	3,567,706	$	(37)	$	14,462	$	(3,756)	$	3,578,375

(1)Amounts presented exclude $5.7 million of accrued interest receivable on investment securities as of September 30, 2020.

(2)Represents the amount of impairment that has resulted from credit-related factors, and therefore was recognized in the consolidated statement of operations as a provision for losses. Amount excludes unrealized losses relating to non-credit factors.

(3)The held-to-maturity investment securities had a weighted average yield of 1.5% as of September 30, 2020.

	As of December 31, 2019
	Amount Outstanding		Unamortized Premium/(Discount)		Amortized Cost		Unrealized Gains		Unrealized Losses		Fair Value
	(in thousands)
Available-for-sale:
Floating rate auction-rate certificates backed by Government guaranteed student loans	$	19,700	$	—	$	19,700	$	—	$	(788)	$	18,912
Floating rate asset-backed securities	11,092		—		11,092		—		(7)		11,085
Floating rate Government/GSE guaranteed mortgage-backed securities	1,633,731		1,174		1,634,905		2,414		(4,736)		1,632,583
Fixed rate GSE guaranteed mortgage-backed securities	315		—		315		25		—		340
Fixed rate U.S. Treasuries	1,295,210		208		1,295,418		1,520		(15)		1,296,923
Total available-for-sale	2,960,048		1,382		2,961,430		3,959		(5,546)		2,959,843
Held-to-maturity:
Floating rate Government/GSE guaranteed mortgage-backed securities(1)	45,032		—		45,032		953		—		45,985
Total investment securities	$	3,005,080	$	1,382	$	3,006,462	$	4,912	$	(5,546)	$	3,005,828

(1)The held-to-maturity investment securities had a weighted average yield of 3.3% as of December 31, 2019.

The following tables set forth information about on-balance sheet Farmer Mac Guaranteed Securities and USDA Securities as of September 30, 2020 and December 31, 2019:

Table 3.1

	As of September 30, 2020
	Unpaid Principal Balance		Unamortized Premium/(Discount)		Amortized Cost(1)		Allowance for losses(2)		Unrealized Gains		Unrealized Losses		Fair Value
	(in thousands)
Held-to-maturity:
AgVantage	$	1,164,353	$	(73)	$	1,164,280	$	(216)	$	25,969	$	(99)	$	1,189,934
Farmer Mac Guaranteed USDA Securities	36,414		92		36,506		—		1,026		(1)		37,531
Total Farmer Mac Guaranteed Securities	1,200,767		19		1,200,786		(216)		26,995		(100)		1,227,465
USDA Securities	2,381,416		29,432		2,410,848		—		105,721		(1,398)		2,515,171
Total held-to-maturity	$	3,582,183	$	29,451	$	3,611,634	$	(216)	$	132,716	$	(1,498)	$	3,742,636
Available-for-sale:
AgVantage	$	7,149,082	$	1,524	$	7,150,606	$	(330)	$	394,280	$	(32,918)	$	7,511,638
Trading:
USDA Securities(3)	$	6,617	$	352	$	6,969	$	—	$	10	$	(149)	$	6,830

(1)Amounts presented exclude $32.7 million, $41.1 million, and $0.1 million of accrued interest receivable on available-for-sale, held-to-maturity, and trading securities, respectively, as of September 30, 2020.

(2)Represents the amount of impairment that has resulted from credit-related factors, and therefore was recognized in the statement of financial operations as a provision for losses. Amount excludes unrealized losses relating to non-credit factors.

(3)The trading USDA securities had a weighted average yield of 5.09% as of September 30, 2020.

	As of December 31, 2019
	Unpaid Principal Balance		Unamortized Premium/(Discount)		Amortized Cost		Unrealized Gains		Unrealized Losses		Fair Value
	(in thousands)
Held-to-maturity:
AgVantage	$	1,415,584	$	(174)	$	1,415,410	$	15,300	$	(164)	$	1,430,546
Farmer Mac Guaranteed USDA Securities	31,887		154		32,041		839		—		32,880
Total Farmer Mac Guaranteed Securities	1,447,471		(20)		1,447,451		16,139		(164)		1,463,426
USDA Securities	2,190,671		41,489		2,232,160		54,356		(758)		2,285,758
Total held-to-maturity	$	3,638,142	$	41,469	$	3,679,611	$	70,495	$	(922)	$	3,749,184
Available-for-sale:
AgVantage	$	7,017,095	$	(124)	$	7,016,971	$	161,316	$	(35,262)	$	7,143,025
Trading:
USDA Securities(1)	$	8,400	$	479	$	8,879	$	61	$	(27)	$	8,913

(1)The trading USDA securities had a weighted average yield of 5.20% as of December 31, 2019.

Schedule of Unrealized Losses on Available-for-Sale Investment Securities

As of September 30, 2020 and December 31, 2019, unrealized losses on available-for-sale investment securities were as follows:

Table 2.2

	As of September 30, 2020
	Available-for-Sale Securities
	Unrealized loss position for less than 12 months				Unrealized loss position for more than 12 months
	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
	(dollars in thousands)
Floating rate auction-rate certificates backed by Government guaranteed student loans	$	—	$	—	$	19,072	$	(591)
Floating rate asset-backed securities	—		—		6,873		(4)
Floating rate Government/GSE guaranteed mortgage-backed securities	154,452		(464)		403,469		(2,688)
Fixed rate U.S. Treasuries	50,861		(9)		—		—
Total	$	205,313	$	(473)	$	429,414	$	(3,283)
Number of securities in loss position			27				63

	As of December 31, 2019
	Available-for-Sale Securities
	Unrealized loss position for less than 12 months				Unrealized loss position for more than 12 months
	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
	(dollars in thousands)
Floating rate auction-rate certificates backed by Government guaranteed student loans	$	—	$	—	$	18,912	$	(788)
Floating rate asset-backed securities	2,583		(1)		8,502		(6)
Floating rate Government/GSE guaranteed mortgage-backed securities	841,993		(2,244)		436,621		(2,492)
Fixed rate U.S. Treasuries	35,107		(15)		—		—
Total	$	879,683	$	(2,260)	$	464,035	$	(3,286)
Number of securities in loss position			57				62

As of September 30, 2020 and December 31, 2019, unrealized losses on held-to-maturity and available-for-sale on-balance sheet Farmer Mac Guaranteed Securities and USDA Securities were as follows:

Table 3.2

	As of September 30, 2020
	Held-to-Maturity and Available-for-Sale Securities
	Unrealized loss position for less than 12 months				Unrealized loss position for more than 12 months
	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
	(in thousands)
Held-to-maturity:
AgVantage	$	49,901	$	(99)	$	—	$	—
Farmer Mac Guaranteed USDA Securities	45		(1)		—		—
USDA Securities	$	—	$	—	$	21,521	$	(1,398)
Total held-to-maturity	$	49,946	$	(100)	$	21,521	$	(1,398)
Available-for-sale:
AgVantage	$	333,544	$	(445)	$	972,161	$	(32,473)

	As of December 31, 2019
	Held-to-Maturity and Available-for-Sale Securities
	Unrealized loss position for less than 12 months				Unrealized loss position for more than 12 months
	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
	(in thousands)
Held-to-maturity:
AgVantage	$	—	$	—	$	301,836	$	(164)
USDA Securities	—		—		27,089		(758)
Total held-to-maturity	$	—	$	—	$	328,925	$	(922)
Available-for-sale:
AgVantage	$	225,239	$	(2,203)	$	1,394,802	$	(33,059)

Schedule of Available-for-Sale and Held-to-Maturity Securities Maturities

The amortized cost, fair value, and weighted-average yield of available-for-sale investment securities by remaining contractual maturity as of September 30, 2020 are set forth below. Asset-backed and mortgage-backed securities are included based on their final maturities, although the actual maturities may differ due to prepayments of the underlying assets.

Table 2.3

	As of September 30, 2020
	Available-for-Sale Securities
	Amortized Cost		Fair Value		Weighted- Average Yield
	(dollars in thousands)
Due within one year	$	1,142,369	$	1,146,222	2.01%
Due after one year through five years	361,971		362,065		0.76%
Due after five years through ten years	1,129,147		1,134,255		0.67%
Due after ten years	889,187		889,648		0.69%
Total	$	3,522,674	$	3,532,190	1.12%

The amortized cost, fair value, and weighted-average yield of available-for-sale and held-to-maturity Farmer Mac Guaranteed Securities and USDA Securities by remaining contractual maturity as of September 30, 2020 are set forth below. The balances presented are based on their final maturities, although the actual maturities may differ due to prepayments of the underlying assets.

Table 3.3

	As of September 30, 2020
	Available-for-Sale Securities
	Amortized Cost(1)		Fair Value		Weighted- Average Yield
	(dollars in thousands)
Due within one year	$	1,461,551	$	1,468,084	1.48	%
Due after one year through five years	3,102,003		3,214,595		2.24	%
Due after five years through ten years	1,073,248		1,157,450		2.42	%
Due after ten years	1,513,804		1,671,509		2.57	%
Total	$	7,150,606	$	7,511,638	2.18	%

(1)Amounts presented exclude $32.7 million of accrued interest receivable.

	As of September 30, 2020
	Held-to-Maturity Securities
	Amortized Cost(1)		Fair Value		Weighted- Average Yield
	(dollars in thousands)
Due within one year	$	482,593	$	486,460	2.75	%
Due after one year through five years	765,529		790,138		3.15	%
Due after five years through ten years	226,396		234,799		2.96	%
Due after ten years	2,137,116		2,231,239		3.25	%
Total	$	3,611,634	$	3,742,636	3.11	%

(1)Amounts presented exclude $41.1 million of accrued interest receivable.

XML

Financial Derivatives (Tables)

9 Months Ended

Sep. 30, 2020

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Derivative Instruments in Statement of Financial Position

The following tables summarize information related to Farmer Mac's financial derivatives on a gross basis without giving consideration to master netting arrangements as of September 30, 2020 and December 31, 2019:

Table 4.1

	As of September 30, 2020
			Fair Value				Weighted- Average Pay Rate	Weighted- Average Receive Rate	Weighted- Average Forward Price	Weighted- Average Remaining Term (in years)
	Notional Amount		Asset		(Liability)
	(dollars in thousands)
Fair value hedges:
Interest rate swaps:
Pay fixed non-callable	$	5,410,407	$	5,530	$	(4,106)	2.26%	0.24%		12.02
Receive fixed non-callable	2,435,729		—		(11,532)		0.35%	1.75%		2.26
Receive fixed callable	343,500		4,460		—		0.18%	1.78%		3.41
Cash flow hedges:
Interest rate swaps:
Pay fixed non-callable	482,000		1,597		(10,739)		2.02%	0.56%		6.17
No hedge designation:
Interest rate swaps:
Pay fixed non-callable	356,864		—		(10,879)		2.38%	0.24%		4.26
Receive fixed non-callable	2,622,182		—		—		0.16%	0.98%		0.73
Receive fixed callable	200,000		1		(5)		0.07%	0.08%		0.97
Basis swaps	3,268,500		1,242		(188)		0.22%	0.25%		1.29
Treasury futures	4,400		9		—				139.73
Credit valuation adjustment			(2)		92
Total financial derivatives	$	15,123,582	$	12,837	$	(37,357)
Collateral (held)/pledged			(600)		225,646
Net amount			$	12,237	$	188,289

	As of December 31, 2019
			Fair Value				Weighted- Average Pay Rate	Weighted- Average Receive Rate	Weighted- Average Forward Price	Weighted- Average Remaining Term (in years)
	Notional Amount		Asset		(Liability)
	(dollars in thousands)
Fair value hedges:
Interest rate swaps:
Pay fixed non-callable	$	4,955,686	$	7,163	$	(3,281)	2.47%	1.93%		11.26
Receive fixed non-callable	1,413,200		76		(5,329)		1.88%	2.13%		1.25
Receive fixed callable	524,000		476		(772)		1.52%	1.91%		2.83
Cash flow hedges:
Interest rate swaps:
Pay fixed non-callable	428,000		1,882		(1,514)		2.36%	2.12%		5.43
No hedge designation:
Interest rate swaps:
Pay fixed non-callable	342,745		7		(14,046)		3.55%	2.00%		5.51
Receive fixed non-callable	3,124,148		49		(1,637)		1.88%	2.06%		1.66
Receive fixed callable	525,000		79		(80)		1.64%	1.68%		0.83
Basis swaps	2,670,000		787		(395)		1.86%	1.76%		0.90
Treasury futures	39,400		—		(51)				128.29
Credit valuation adjustment			—		63
Total financial derivatives	$	14,022,179	$	10,519	$	(27,042)
Collateral (held)/pledged			(2,685)		132,129
Net amount			$	7,834	$	105,087

Schedule of Net Income/(Expense) Recognized

The following table summarizes the net income/(expense) recognized in the consolidated statements of operations related to derivatives for the three and nine months ended September 30, 2020 and 2019:

Table 4.2

	For the Three Months Ended September 30, 2020
	Net Income/(Expense) Recognized in Consolidated Statement of Operations on Derivatives
	Net Interest Income						Non-Interest Income		Total
	Interest Income Farmer Mac Guaranteed Securities and USDA Securities		Interest Income Loans		Total Interest Expense		Losses on financial derivatives
	(in thousands)
Total amounts presented in the consolidated statement of operations	$	45,335	$	56,204	$	(63,974)	$	(564)	$	37,001
Income/(expense) related to interest settlements on fair value hedging relationships:
Recognized on derivatives	(20,373)		(6,194)		9,605		—		(16,962)
Recognized on hedged items	31,439		10,965		(12,328)		—		30,076
Discount amortization recognized on hedged items	—		—		(191)		—		(191)
Income/(expense) related to interest settlements on fair value hedging relationships	$	11,066	$	4,771	$	(2,914)	$	—	$	12,923
(Losses)/gains on fair value hedging relationships:
Recognized on derivatives	$	38,363	$	28,198	$	(9,665)	$	—	$	56,896
Recognized on hedged items	(41,855)		(29,372)		9,284		—		(61,943)
(Losses)/gains on fair value hedging relationships	$	(3,492)	$	(1,174)	$	(381)	$	—	$	(5,047)
Expense related to interest settlements on cash flow hedging relationships:
Interest settlements reclassified from AOCI into net income on derivatives	$	—	$	—	$	(1,814)	$	—	$	(1,814)
Recognized on hedged items	—		—		(711)		—		(711)
Discount amortization recognized on hedged items	—		—		(4)		—		(4)
Expense recognized on cash flow hedges	$	—	$	—	$	(2,529)	$	—	$	(2,529)
Losses on financial derivatives not designated in hedging relationships:
Losses on interest rate swaps	$	—	$	—	$	—	$	(4,292)	$	(4,292)
Interest expense on interest rate swaps	—		—		—		3,800		3,800
Treasury futures	—		—		—		(72)		(72)
Losses on financial derivatives not designated in hedge relationships	$	—	$	—	$	—	$	(564)	$	(564)

	For The Three Months Ended September 30, 2019
	Net Income/(Expense) Recognized in Consolidated Statement of Operations on Derivatives
	Net Interest Income						Non-Interest Income		Total
	Interest Income Farmer Mac Guaranteed Securities and USDA Securities		Interest Income Loans		Total Interest Expense		Losses on financial derivatives
	(in thousands)
Total amounts presented in the consolidated statement of operations:	$	81,649	$	56,992	$	(121,384)	$	(7,360)	$	9,897
Income/(expense) related to interest settlements on fair value hedging relationships:
Recognized on derivatives	(1,051)		(584)		(961)		—		(2,596)
Recognized on hedged items	31,435		7,321		(10,778)		—		27,978
Discount amortization recognized on hedged items	—		—		(146)		—		(146)
Income/(expense) related to interest settlements on fair value hedging relationships	$	30,384	$	6,737	$	(11,885)	$	—	$	25,236
(Losses)/gains on fair value hedging relationships:
Recognized on derivatives	$	(87,495)	$	(35,597)	$	1,979	$	—	$	(121,113)
Recognized on hedged items	84,164		33,493		(1,034)		—		116,623
(Losses)/gains on fair value hedging relationships	$	(3,331)	$	(2,104)	$	945	$	—	$	(4,490)
Expense related to interest settlements on cash flow hedging relationships:
Interest settlements reclassified from AOCI into net income on derivatives	$	—	$	—	$	317	$	—	$	317
Recognized on hedged items	—		—		(2,726)		—		(2,726)
Discount amortization recognized on hedged items	—		—		(1)		—		(1)
Expense recognized on cash flow hedges	$	—	$	—	$	(2,410)	$	—	$	(2,410)
Losses on financial derivatives not designated in hedge relationships:
Losses on interest rate swaps	$	—	$	—	$	—	$	(7,402)	$	(7,402)
Interest expense on interest rate swaps	—		—		—		127		127
Treasury futures	—		—		—		(85)		(85)
Losses on financial derivatives not designated in hedge relationships	$	—	$	—	$	—	$	(7,360)	$	(7,360)

	For the Nine Months Ended September 30, 2020
	Net Income/(Expense) Recognized in Consolidated Statement of Operations on Derivatives
	Net Interest Income						Non-Interest Income		Total
	Interest Income Farmer Mac Guaranteed Securities and USDA Securities		Interest Income Loans		Total Interest Expense		Losses on financial derivatives
	(in thousands)
Total amounts presented in the consolidated statement of operations	$	178,644	$	172,230	$	(251,789)	$	(3,339)	$	95,746
Income/(expense) related to interest settlements on fair value hedging relationships:
Recognized on derivatives	(38,781)		(12,607)		16,671		—		(34,717)
Recognized on hedged items	95,366		29,454		(39,325)		—		85,495
Discount amortization recognized on hedged items	—		—		(552)		—		(552)
Income/(expense) related to interest settlements on fair value hedging relationships	$	56,585	$	16,847	$	(23,206)	$	—	$	50,226
(Losses)/gains on fair value hedging relationships:
Recognized on derivatives	$	(264,797)	$	(124,322)	$	52,991	$	—	$	(336,128)
Recognized on hedged items	257,575		119,072		(53,628)		—		323,019
(Losses)/gains on fair value hedging relationships	$	(7,222)	$	(5,250)	$	(637)	$	—	$	(13,109)
Expense related to interest settlements on cash flow hedging relationships:
Interest settlements reclassified from AOCI into net income on derivatives	$	—	$	—	$	(3,817)	$	—	$	(3,817)
Recognized on hedged items	—		—		(3,863)		—		(3,863)
Discount amortization recognized on hedged items	—		—		(6)		—		(6)
Expense recognized on cash flow hedges	$	—	$	—	$	(7,686)	$	—	$	(7,686)
(Losses)/gains on financial derivatives not designated in hedging relationships:
Losses on interest rate swaps	$	—	$	—	$	—	$	(2,415)	$	(2,415)
Interest expense on interest rate swaps	—		—		—		1,143		1,143
Treasury futures	—		—		—		(2,067)		(2,067)
(Losses)/gains on financial derivatives not designated in hedge relationships	$	—	$	—	$	—	$	(3,339)	$	(3,339)

	For The Nine Months Ended September 30, 2019
	Net Income/(Expense) Recognized in Consolidated Statement of Operations on Derivatives
	Net Interest Income						Non-Interest Income		Total
	Interest Income Farmer Mac Guaranteed Securities and USDA Securities		Interest Income Loans		Total Interest Expense		Gains on financial derivatives
	(in thousands)
Total amounts presented in the consolidated statement of operations:	$	252,629	$	167,792	$	(358,374)	$	1,193	$	63,240
Income/(expense) related to interest settlements on fair value hedging relationships:
Recognized on derivatives	1,665		(808)		(6,751)		—		(5,894)
Recognized on hedged items	86,628		18,199		(32,594)		—		72,233
Discount amortization recognized on hedged items	—		—		(460)		—		(460)
Income/(expense) related to interest settlements on fair value hedging relationships	$	88,293	$	17,391	$	(39,805)	$	—	$	65,879
Gains/(losses) on fair value hedging relationships:
Recognized on derivatives	$	(262,886)	$	(89,631)	$	27,101	$	—	$	(325,416)
Recognized on hedged items	258,155		83,524		(24,880)		—		316,799
Gains/(losses) on fair value hedging relationships	$	(4,731)	$	(6,107)	$	2,221	$	—	$	(8,617)
Expense related to interest settlements on cash flow hedging relationships:
Interest settlements reclassified from AOCI into net income on derivatives	$	—	$	—	$	1,260	$	—	$	1,260
Recognized on hedged items	—		—		(8,142)		—		(8,142)
Discount amortization recognized on hedged items	—		—		(3)		—		(3)
Expense recognized on cash flow hedges	$	—	$	—	$	(6,885)	$	—	$	(6,885)
Gains on financial derivatives not designated in hedge relationships:
Gains on interest rate swaps	$	—	$	—	$	—	$	5,920	$	5,920
Interest expense on interest rate swaps	—		—		—		(3,321)		(3,321)
Treasury futures	—		—		—		(1,406)		(1,406)
Gains on financial derivatives not designated in hedge relationships	$	—	$	—	$	—	$	1,193	$	1,193

Schedule of Hedged Items in Fair Value Hedging Relationships

The following table shows the carrying amount and associated cumulative basis adjustment related to the application of hedge accounting that is included in the carrying amount of hedged assets and liabilities in fair value hedging relationships as of September 30, 2020 and December 31, 2019:

Table 4.3

	Hedged Items in Fair Value Relationship
	Carrying Amount of Hedged Assets/(Liabilities)				Cumulative Amount of Fair Value Hedging Adjustments included in the Carrying Amount of the Hedged Assets/(Liabilities)
	September 30, 2020		December 31, 2019		September 30, 2020		December 31, 2019
	(in thousands)
Farmer Mac Guaranteed Securities, Available-for-Sale, at fair value(1)	$	4,277,240	$	4,092,611	$	437,777	$	180,215
Loans held for investment, at amortized cost(2)(3)	1,628,241		1,050,335		156,979		37,907
Notes Payable(4)	(2,838,690)		(2,761,052)		(61,149)		(7,433)

(1)Includes $1.6 million of hedging adjustments on discontinued hedging relationships as of September 30, 2020.

(2)Includes $1.4 million of hedging adjustments on a discontinued hedging relationship as of September 30, 2020.

(3)Includes $0.2 million as of September 30, 2020 in fair value adjustment, currently included in "Prepaid expenses and other assets" related to hedge accounting designations of purchase commitments

(4)Carrying amount represents amortized cost.

Schedule of Credit Exposure to Interest Rate Swap Counterparties

The following table shows Farmer Mac's credit exposure to interest rate swap counterparties as of September 30, 2020 and December 31, 2019:

Table 4.4

	September 30, 2020
	Gross Amount Recognized(1)		Counterparty Netting		Net Amount Presented in the Consolidated Balance Sheet
	(in thousands)
Assets:
Derivatives
Interest rate swap	$	114,788	$	114,165	$	623
Liabilities:
Derivatives
Interest rate swap	$	718,812	$	714,470	$	4,342

(1)Gross amount excludes netting arrangements and any adjustment for nonperformance risk, but includes accrued interest.

	December 31, 2019
	Gross Amount Recognized(1)		Counterparty Netting		Net Amount Presented in the Consolidated Balance Sheet
	(in thousands)
Assets:
Derivatives
Interest rate swaps	$	56,139	$	53,771	$	2,368
Liabilities:
Derivatives
Interest rate swaps	$	305,584	$	291,326	$	14,258

(1)Gross amount excludes netting arrangements and any adjustment for nonperformance risk, but includes accrued interest.

XML

Loans (Tables)

9 Months Ended

Sep. 30, 2020

Receivables [Abstract]

Schedule of Composition of Loan Balances

The following table includes loans held for investment and loans held for sale and displays the composition of the loan balances as of September 30, 2020 and December 31, 2019:

Table 5.1

	As of September 30, 2020(1)						As of December 31, 2019(2)
	Unsecuritized		In Consolidated Trusts		Total		Unsecuritized		In Consolidated Trusts		Total
	(in thousands)
Farm & Ranch	$	4,580,917	$	1,276,407	$	5,857,324	$	3,675,640	$	1,600,917	$	5,276,557
Rural Utilities	2,109,355		—		2,109,355		1,671,293		—		1,671,293
Total unpaid principal balance(3)	6,690,272		1,276,407		7,966,679		5,346,933		1,600,917		6,947,850
Unamortized premiums, discounts, fair value hedge basis adjustment, and other cost basis adjustments	154,789		—		154,789		44,044		—		44,044
Total loans	6,845,061		1,276,407		8,121,468		5,390,977		1,600,917		6,991,894
Allowance for losses	(14,878)		(943)		(15,821)		(8,853)		(1,601)		(10,454)
Total loans, net of allowance	$	6,830,183	$	1,275,464	$	8,105,647	$	5,382,124	$	1,599,316	$	6,981,440

(1)Allowance for losses reflects the adoption of ASU 2016-13, "Financial Instruments - Credit Losses," effective January 1, 2020.

(2)Prior to the adoption of ASU 2016-13, "Financial Instruments - Credit Losses," effective January 1, 2020, Farmer Mac maintained an allowance for losses to cover estimated probable incurred losses on loans held.

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

Schedule Allowance for Losses

The following table is a summary, by asset type, of the allowance for losses as of September 30, 2020 and December 31, 2019:

Table 5.2

	September 30, 2020(1)		December 31, 2019(2)
	Allowance for Losses		Allowance for Losses
	(in thousands)
Loans:
Farm & Ranch	$	5,739	$	10,454
Rural Utilities	10,082		—
Total	$	15,821	$	10,454

(1)Allowance for losses reflects the adoption of ASU 2016-13, "Financial Instruments - Credit Losses," effective January 1, 2020.

(2)Prior to the adoption of ASU 2016-13, "Financial Instruments - Credit Losses," effective January 1, 2020, Farmer Mac maintained an allowance for loan losses to cover estimated probable incurred losses on loans held.

The following is a summary of the changes in the allowance for losses for the three and nine month period ended September 30, 2020 and 2019:

Table 5.3

	For the Three Months Ended				For the Nine Months Ended
	September 30, 2020(1)		September 30, 2019(2)		September 30, 2020(1)		September 30, 2019(2)
	Allowance for Losses		Allowance for Losses		Allowance for Losses		Allowance for Losses
	(in thousands)
Farm & Ranch:
Beginning Balance	$	6,039	$	7,264	$	10,454	$	7,017
Cumulative effect adjustment from adoption of current expected credit loss standard	—		—		(3,909)		—
Adjusted Beginning Balance	6,039		7,264		6,545		7,017
(Release of)/provision for losses	(300)		760		(412)		1,074
Charge-offs	—		—		(394)		(67)
Ending Balance(3)	$	5,739	$	8,024	$	5,739	$	8,024
Rural Utilities:
Beginning Balance	$	8,900	$	—	$	—	$	—
Cumulative effect adjustment from adoption of current expected credit loss standard	—		—		5,378		—
Adjusted Beginning Balance	8,900		—		5,378		—
Provision for losses	1,182		—		4,704		—
Charge-offs	—		—		—		—
Ending Balance(4)	$	10,082	$	—	$	10,082	$	—

(1)Allowance for losses reflects the adoption of ASU 2016-13, "Financial Instruments - Credit Losses," effective January 1, 2020.

(2)Prior to the adoption of ASU 2016-13, "Financial Instruments - Credit Losses," effective January 1, 2020, Farmer Mac maintained an allowance for loan losses to cover estimated probable incurred losses on loans held.

(3)Allowance for losses includes $1.8 million for collateral dependent assets secured by agricultural real estate.

(4)Allowance for losses includes no allowance for collateral dependent assets.

Schedule of Past Due Financing Receivables

The following table presents the unpaid principal balances by delinquency status of Farmer Mac's loans and non-performing assets as of September 30, 2020:

Table 5.4

	As of September 30, 2020
	Accruing
	Current(5)		30-59 Days		60-89 Days		90 Days and Greater(2)		Total Past Due		Nonaccrual loans(3)(4)		Total Loans
	(in thousands)
Loans(1):
Farm & Ranch	$	5,716,834	$	3,513	$	637	$	6,901	$	11,051	$	129,439	$	5,857,324
Rural Utilities	2,109,355		—		—		—		—		—		2,109,355
Total	$	7,826,189	$	3,513	$	637	$	6,901	$	11,051	$	129,439	$	7,966,679

(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)Includes loans in consolidated trusts with beneficial interests owned by third parties that are 90 days or more past due.

(3)Includes loans 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.

(4)Includes $24.8 million of nonaccrual loans for which there was no associated allowance. During the three and nine months ended September 30, 2020, Farmer Mac received $1.2 million and $3.5 million, respectively, in interest on nonaccrual loans.

(5)Includes $105.3 million of unpaid principal balance related to Farm & Ranch loans that Farmer Mac has executed a COVID-19 payment deferment.

Net credit losses and 90-day delinquencies as of and for the periods indicated for loans held are presented in the table below.  As of December 31, 2019, 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 5.8

	90-Day Delinquencies(1)		Net Credit Losses
	As of		For the Nine Months Ended
	December 31, 2019		September 30, 2019
	(in thousands)
Farm & Ranch loans	$	57,719	$	131

(1)Includes loans 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.

The following table presents the unpaid principal balances by delinquency status of Farm & Ranch loans underlying LTSPCs. Farm & Ranch Farmer Mac Guaranteed Securities, Rural Utilities loans underlying LTSPCs, and non-performing assets as of September 30, 2020:

Table 6.7

	As of September 30, 2020
	Current(2)		30-59 Days		60-89 Days		90 Days and Greater(1)		Total Past Due		Total Loans
	(in thousands)
Farm and Ranch:
LTSPCs and Farmer Mac Guaranteed Securities	$	2,352,454	$	2,934	$	22,690	$	13,947	$	39,571	$	2,392,025
Rural Utilities:
LTSPCs	$	575,954	$	—	$	—	$	—	$	—	$	575,954

(1)Includes loans underlying off-balance sheet Farm & Ranch Guaranteed Securities and LTSPCs that are 90 days of 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.

(2)Includes $185.4 million of unpaid principal balance related to Farm & Ranch LTSPCs for which the lender has notified Farmer Mac of an executed COVID-19 payment deferment.

Table 6.9

	90-Day Delinquencies(1)		Net Credit Losses/(Recoveries)
	As of		For the Nine Months Ended
	December 31, 2019		September 30, 2019
	(in thousands)
Farm & Ranch LTSPCs and Farmer Mac Guaranteed Securities	$	3,235	$	—

(1)Includes 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.

Schedule of Allowance for Losses by Impairment Method and Commodity

The following tables present the unpaid principal balances of loans held and the related total allowance for losses by impairment method and commodity type as of December 31, 2019:

Table 5.5

	As of December 31, 2019
	Crops		Permanent Plantings		Livestock		Part-time Farm		Ag. Storage and Processing		Other		Total
	(in thousands)
Ending Balance:
Collectively evaluated for impairment	$	2,664,362	$	1,161,900	$	871,341	$	356,920	$	10,360	$	4,597	$	5,069,480
Individually evaluated for impairment	108,815		51,256		39,962		7,044		—		—		207,077
Total Farm & Ranch loans	$	2,773,177	$	1,213,156	$	911,303	$	363,964	$	10,360	$	4,597	$	5,276,557
Allowance for Losses:
Collectively evaluated for impairment	$	1,880	$	1,362	$	714	$	249	$	47	$	4	$	4,256
Individually evaluated for impairment	2,628		1,008		2,447		115		—		—		6,198
Total Farm & Ranch loans	$	4,508	$	2,370	$	3,161	$	364	$	47	$	4	$	10,454

The following tables present the unpaid principal balances of Farm & Ranch loans underlying LTSPCs and off-balance sheet Farmer Mac Guaranteed Securities (excluding AgVantage securities) and the related reserve for losses by impairment method and commodity type as of December 31, 2019:

Table 6.8

	As of December 31, 2019
	Crops		Permanent Plantings		Livestock		Part-time Farm		Ag. Storage and Processing		Other		Total
	(in thousands)
Ending Balance:
Collectively evaluated for impairment:	$	1,151,983	$	511,991	$	581,377	$	167,395	$	66,106	$	2,760	$	2,481,612
Individually evaluated for impairment:	5,698		2,114		10,207		706		—		56		18,781
Total Farm & Ranch	$	1,157,681	$	514,105	$	591,584	$	168,101	$	66,106	$	2,816	$	2,500,393
Allowance for Losses:
Collectively evaluated for impairment:	$	599	$	96	$	308	$	50	$	767	$	1	$	1,821
Individually evaluated for impairment:	97		43		189		14		—		—		343
Total Farm & Ranch	$	696	$	139	$	497	$	64	$	767	$	1	$	2,164

Schedule of Impaired Financing Receivables

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, 2019:

Table 5.6

	As of December 31, 2019
	Crops		Permanent Plantings		Livestock		Part-time Farm		Ag. Storage and Processing		Other		Total
	(in thousands)
Impaired Loans:
With no specific allowance:
Recorded investment	$	30,846	$	16,696	$	3,195	$	1,398	$	—	$	56	$	52,191
Unpaid principal balance	30,741		16,638		3,185		1,394		—		56		52,014
With a specific allowance:
Recorded investment(1)	84,044		36,852		47,113		6,376		—		—		174,385
Unpaid principal balance	83,772		36,732		46,984		6,356		—		—		173,844
Associated allowance	2,725		1,051		2,636		129		—		—		6,541
Total:
Recorded investment	114,890		53,548		50,308		7,774		—		56		226,576
Unpaid principal balance	114,513		53,370		50,169		7,750		—		56		225,858
Associated allowance	2,725		1,051		2,636		129		—		—		6,541
Recorded investment of loans on nonaccrual status(2)	$	34,037	$	22,849	$	28,441	$	2,454	$	—	$	—	$	87,781

(1)Impairment analysis was performed in the aggregate in consideration of similar risk characteristics of the assets and historical statistics on $159.1 million (70%) of impaired loans as of December 31, 2019, which resulted in a specific allowance of $3.0 million.

(2)Includes $30.1 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 three and nine months ended September 30, 2019:

Table 5.7

	September 30, 2019
	Crops		Permanent Plantings		Livestock		Part-time Farm		Ag. Storage and Processing		Other		Total
	(in thousands)
For the Three Months Ended:
Average recorded investment in impaired loans	$	106,535	$	45,197	$	36,859	$	8,265	$	—	$	58	$	196,914
Income recognized on impaired loans	178		166		87		105		—		—		536
For the Nine Months Ended:
Average recorded investment in impaired loans	$	93,088	$	41,524	$	31,189	$	8,079	$	—	$	63	$	173,943
Income recognized on impaired loans	879		586		504		227		—		—		2,196

Schedule of Financing Receivable Credit Quality Indicators

The following tables present credit quality indicators related to Farm & Ranch loans and Rural Utilities loans held as of September 30, 2020, by year of origination:

Table 5.9

	As of September 30, 2020
	Year of Origination:
	2020		2019		2018		2017		2016		Prior		Revolving Loans - Amortized Cost Basis		Total
	(in thousands)
Farm & Ranch(1):
Internally Assigned Risk Rating:
Acceptable	$	1,423,112	$	765,367	$	507,218	$	557,095	$	499,642	$	1,157,633	$	472,209	$	5,382,276
Special mention(2)	39,607		124,068		27,757		4,633		10,897		22,236		50,395		279,593
Substandard(3)	7,556		5,926		19,682		57,541		36,490		59,330		8,930		195,455
Total	$	1,470,275	$	895,361	$	554,657	$	619,269	$	547,029	$	1,239,199	$	531,534	$	5,857,324
For the Three Months Ended:
Current period charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Current period recoveries	—		—		—		—		—		—		—		—
Current period Farm & Ranch net charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
For the Nine Months Ended:
Current period charge-offs	$	—	$	—	$	—	$	—	$	—	$	394	$	—	$	394
Current period recoveries	—		—		—		—		—		—		—		—
Current period Farm & Ranch net charge-offs	$	—	$	—	$	—	$	—	$	—	$	394	$	—	$	394

(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 September 30, 2020
	Year of Origination:
	2020		2019		2018		2017		2016		Prior		Revolving Loans - Amortized Cost Basis		Total
	(in thousands)
Rural Utilities(1):
Internally Assigned Risk Rating:
Acceptable	$	502,873	$	819,099	$	8,260	$	92,223	$	31,275	$	638,281	$	12,870	$	2,104,881
Special mention(2)	—		—		—		—		—		—		—		—
Substandard(3)	—		—		—		—		—		4,474		—		4,474
Total	$	502,873	$	819,099	$	8,260	$	92,223	$	31,275	$	642,755	$	12,870	$	2,109,355
For the Three Months Ended:
Current period charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Current period recoveries	—		—		—		—		—		—		—		—
Current period Rural Utilities net charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
For the Nine Months Ended:
Current period charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Current period recoveries	—		—		—		—		—		—		—		—
Current period Rural Utilities net charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

(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.

The following table presents credit quality indicators related to Farm & Ranch loans held as of December 31, 2019:

Table 5.10

	As of December 31, 2019
	Crops		Permanent Plantings		Livestock		Part-time Farm		Ag. Storage and Processing		Other		Total
	(in thousands)
Internally Assigned Risk Rating(1)
Acceptable	$	2,556,956	$	1,050,160	$	825,234	$	343,329	$	10,360	$	4,597	$	4,790,636
Special mention(2)	107,406		111,739		46,107		13,591		—		—		278,843
Substandard(3)	108,815		51,257		39,962		7,044		—		—		207,078
Total	$	2,773,177	$	1,213,156	$	911,303	$	363,964	$	10,360	$	4,597	$	5,276,557
Commodity analysis of past due loans(1)	$	21,167	$	15,828	$	19,354	$	1,370	$	—	$	—	$	57,719

(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.

The following tables present credit quality indicators related to Farm & Ranch loans underlying LTSPCs, Farm & Ranch Farmer Mac Guaranteed Securities, and Rural Utilities loans underlying LTSPCs as of September 30, 2020, by year of origination:

Table 6.10

	As of September 30, 2020
	Year of Origination:
	2020		2019		2018		2017		2016		Prior		Revolving Loans - Amortized Cost Basis		Total
	(in thousands)
Farm & Ranch LTSPCs and Farmer Mac Guaranteed Securities:
Internally Assigned Risk Rating:
Acceptable	$	118,116	$	207,202	$	184,421	$	245,490	$	216,983	$	1,021,400	$	173,617	$	2,167,229
Special mention(1)	—		1,742		1,509		23,200		14,628		47,948		10,040		99,067
Substandard(2)	264		10,821		12,676		15,614		14,401		67,338		4,615		125,729
Total	$	118,380	$	219,765	$	198,606	$	284,304	$	246,012	$	1,136,686	$	188,272	$	2,392,025
For the Three Months Ended:
Current period charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Current period recoveries	—		—		—		—		—		—		—		—
Current period Farm & Ranch net charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
For the Nine Months Ended:
Current period charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Current period recoveries	—		—		—		—		—		—		—		—
Current period Farm & Ranch net charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

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

(2)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 September 30, 2020
	Year of Origination:
	2020		2019		2018		2017		2016		Prior		Revolving Loans - Amortized Cost Basis		Total
	(in thousands)
Rural Utilities LTSPCs:
Internally Assigned Risk Rating:
Acceptable	$	—	$	—	$	—	$	—	$	—	$	569,324	$	6,630	$	575,954
Special mention(1)	—		—		—		—		—		—		—		—
Substandard(2)	—		—		—		—		—		—		—		—
Total	$	—	$	—	$	—	$	—	$	—	$	569,324	$	6,630	$	575,954
For the Three Months Ended
Current period charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Current period recoveries	—		—		—		—		—		—		—		—
Current period Rural Utilities net charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
For the Nine Months Ended:
Current period charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Current period recoveries	—		—		—		—		—		—		—		—
Current period Rural Utilities net charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

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

(2)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.

The following table presents credit quality indicators related to Farm & Ranch loans underlying LTSPCs and off-balance sheet Farm & Ranch Farmer Mac Guaranteed Securities as of December 31, 2019:

Table 6.11

	As of December 31, 2019
	Crops		Permanent Plantings		Livestock		Part-time Farm		Ag. Storage and Processing		Other		Total
	(in thousands)
Internally Assigned Risk Rating(1)
Acceptable	$	1,033,002	$	484,601	$	521,341	$	161,361	$	66,106	$	2,594	$	2,269,005
Special mention(2)	68,372		22,909		35,618		1,612		—		—		128,511
Substandard(3)	56,307		6,595		34,625		5,128		—		222		102,877
Total	$	1,157,681	$	514,105	$	591,584	$	168,101	$	66,106	$	2,816	$	2,500,393
Commodity analysis of past due loans(1)	$	1,493	$	196	$	1,066	$	480	$	—	$	—	$	3,235

(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.

XML

Guarantees (Tables)

9 Months Ended

Sep. 30, 2020

Commitments and Contingencies Disclosure [Abstract]

Schedule of Guarantor Obligations

The following table presents the maximum principal amount of potential undiscounted future payments that Farmer Mac could be required to make under all off-balance sheet Farmer Mac Guaranteed Securities as of September 30, 2020 and December 31, 2019, not including offsets provided by any recourse provisions, recoveries from third parties, or collateral for the underlying loans:

Table 6.1

Outstanding Balance of Off-Balance Sheet Farmer Mac Guaranteed Securities
	As of September 30, 2020		As of December 31, 2019
	(in thousands)
Farm & Ranch:
Farmer Mac Guaranteed Securities	$	85,767	$	107,322
USDA Guarantees:
Farmer Mac Guaranteed USDA Securities	310,682		389,216
Institutional Credit:
AgVantage Securities	6,068		7,567
Total off-balance sheet Farmer Mac Guaranteed Securities	$	402,517	$	504,105

The following table presents the liability and the weighted-average remaining maturity of all loans underlying off-balance sheet Farmer Mac Guaranteed Securities:

Table 6.3

	As of September 30, 2020		As of December 31, 2019
	(dollars in thousands)
Guarantee and commitment obligation	$	1,780	$	2,230
Weighted average remaining maturity:
Farmer Mac Guaranteed Securities	9.5 years		9.8 years
AgVantage Securities	4.2 years		5.0 years

Schedule of Cash Flows Related To Transfer of Securitizations

The following table summarizes the significant cash flows received from and paid to trusts used for Farmer Mac securitizations:

Table 6.2

	For the Nine Months Ended
	September 30, 2020		September 30, 2019
	(in thousands)
Proceeds from new securitizations	$	64,612	$	199,396
Guarantee fees received	1,136		1,122

Schedule of Long-Term Standby Purchase Commitments

The following table presents the liability, the maximum principal amount of potential undiscounted future payments that Farmer Mac could be requested to make under all LTSPCs, not including offsets provided by any recourse provisions, recoveries from third parties, or collateral for the underlying loans, as well as the weighted-average remaining maturity of all loans underlying LTSPCs:

Table 6.4

	As of September 30, 2020		As of December 31, 2019
	(dollars in thousands)
Guarantee and commitment obligation(1)	$	33,360	$	34,470
Maximum principal amount	2,882,212		3,002,349
Weighted-average remaining maturity	15.1 years		15.2 years

(1) Relates to LTSPCs issued or modified on or after January 1, 2003.

Schedule of Reserve for Losses

The following table is a summary, by asset type, of the reserve for losses as of September 30, 2020 and December 31, 2019:

Table 6.5

	September 30, 2020(1)		December 31, 2019(2)
	Reserve for Losses		Reserve for Losses
	(in thousands)
Farm & Ranch:
LTSPCs and Farmer Mac Guaranteed Securities	$	2,278	$	2,164
Rural Utilities
LTSPCs	1,290		—
Total	$	3,568	$	2,164

(1)Reserve for losses reflects the adoption of ASU 2016-13, "Financial Instruments - Credit Losses," in first quarter 2020.

(2)Prior to the adoption of ASU 2016-13, "Financial Instruments - Credit Losses," in first quarter 2020, Farmer Mac maintained a reserve for losses to cover estimated probable incurred losses on loans underlying LTSPCs and off-balance sheet Farm & Ranch Farmer Mac Guaranteed Securities.

The following is a summary of the changes in the reserve for losses for the three and nine month period ended September 30, 2020 and 2019:

Table 6.6

	For the Three Months Ended				For the Nine Months Ended
	September 30, 2020(1)		September 30, 2019(2)		September 30, 2020(1)		September 30, 2019(2)
	Reserve for Losses		Reserve for Losses		Reserve for Losses		Reserve for Losses
	(in thousands)
Farm & Ranch:
Beginning Balance	$	1,650	$	1,880	$	2,164	$	2,167
Cumulative effect adjustment from adoption of current expected credit loss standard	—		—		(148)		—
Adjusted Beginning Balance	1,650		1,880		2,016		2,167
Provision for/(release of) losses	$	628	$	(137)	$	262	$	(424)
Ending Balance	$	2,278	$	1,743	$	2,278	$	1,743
Rural Utilities:
Beginning Balance	$	1,370	$	—	$	—	$	—
Cumulative effect adjustment from adoption of current expected credit loss standard	—		—		1,011		—
Adjusted Beginning Balance	1,370		—		1,011		—
(Release of)/provision for losses	$	(80)	$	—	$	279	$	—
Ending Balance	$	1,290	$	—	$	1,290	$	—

(1)Reserve for losses reflects the adoption of ASU 2016-13, "Financial Instruments - Credit Losses," in first quarter 2020.

(2)Prior to the adoption of ASU 2016-13, "Financial Instruments - Credit Losses," in first quarter 2020, Farmer Mac maintained a reserve for losses to cover estimated probable incurred losses on loans underlying LTSPCs and off-balance sheet Farm & Ranch Farmer Mac Guaranteed Securities.

Schedule of Past Due Financing Receivables

The following table presents the unpaid principal balances by delinquency status of Farmer Mac's loans and non-performing assets as of September 30, 2020:

Table 5.4

	As of September 30, 2020
	Accruing
	Current(5)		30-59 Days		60-89 Days		90 Days and Greater(2)		Total Past Due		Nonaccrual loans(3)(4)		Total Loans
	(in thousands)
Loans(1):
Farm & Ranch	$	5,716,834	$	3,513	$	637	$	6,901	$	11,051	$	129,439	$	5,857,324
Rural Utilities	2,109,355		—		—		—		—		—		2,109,355
Total	$	7,826,189	$	3,513	$	637	$	6,901	$	11,051	$	129,439	$	7,966,679

(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)Includes loans in consolidated trusts with beneficial interests owned by third parties that are 90 days or more past due.

(3)Includes loans 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.

(4)Includes $24.8 million of nonaccrual loans for which there was no associated allowance. During the three and nine months ended September 30, 2020, Farmer Mac received $1.2 million and $3.5 million, respectively, in interest on nonaccrual loans.

(5)Includes $105.3 million of unpaid principal balance related to Farm & Ranch loans that Farmer Mac has executed a COVID-19 payment deferment.

Net credit losses and 90-day delinquencies as of and for the periods indicated for loans held are presented in the table below.  As of December 31, 2019, 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 5.8

	90-Day Delinquencies(1)		Net Credit Losses
	As of		For the Nine Months Ended
	December 31, 2019		September 30, 2019
	(in thousands)
Farm & Ranch loans	$	57,719	$	131

(1)Includes loans 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.

The following table presents the unpaid principal balances by delinquency status of Farm & Ranch loans underlying LTSPCs. Farm & Ranch Farmer Mac Guaranteed Securities, Rural Utilities loans underlying LTSPCs, and non-performing assets as of September 30, 2020:

Table 6.7

	As of September 30, 2020
	Current(2)		30-59 Days		60-89 Days		90 Days and Greater(1)		Total Past Due		Total Loans
	(in thousands)
Farm and Ranch:
LTSPCs and Farmer Mac Guaranteed Securities	$	2,352,454	$	2,934	$	22,690	$	13,947	$	39,571	$	2,392,025
Rural Utilities:
LTSPCs	$	575,954	$	—	$	—	$	—	$	—	$	575,954

(1)Includes loans underlying off-balance sheet Farm & Ranch Guaranteed Securities and LTSPCs that are 90 days of 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.

(2)Includes $185.4 million of unpaid principal balance related to Farm & Ranch LTSPCs for which the lender has notified Farmer Mac of an executed COVID-19 payment deferment.

Table 6.9

	90-Day Delinquencies(1)		Net Credit Losses/(Recoveries)
	As of		For the Nine Months Ended
	December 31, 2019		September 30, 2019
	(in thousands)
Farm & Ranch LTSPCs and Farmer Mac Guaranteed Securities	$	3,235	$	—

(1)Includes 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.

Schedule of Allowance for Losses by Impairment Method and Commodity

The following tables present the unpaid principal balances of loans held and the related total allowance for losses by impairment method and commodity type as of December 31, 2019:

Table 5.5

	As of December 31, 2019
	Crops		Permanent Plantings		Livestock		Part-time Farm		Ag. Storage and Processing		Other		Total
	(in thousands)
Ending Balance:
Collectively evaluated for impairment	$	2,664,362	$	1,161,900	$	871,341	$	356,920	$	10,360	$	4,597	$	5,069,480
Individually evaluated for impairment	108,815		51,256		39,962		7,044		—		—		207,077
Total Farm & Ranch loans	$	2,773,177	$	1,213,156	$	911,303	$	363,964	$	10,360	$	4,597	$	5,276,557
Allowance for Losses:
Collectively evaluated for impairment	$	1,880	$	1,362	$	714	$	249	$	47	$	4	$	4,256
Individually evaluated for impairment	2,628		1,008		2,447		115		—		—		6,198
Total Farm & Ranch loans	$	4,508	$	2,370	$	3,161	$	364	$	47	$	4	$	10,454

The following tables present the unpaid principal balances of Farm & Ranch loans underlying LTSPCs and off-balance sheet Farmer Mac Guaranteed Securities (excluding AgVantage securities) and the related reserve for losses by impairment method and commodity type as of December 31, 2019:

Table 6.8

	As of December 31, 2019
	Crops		Permanent Plantings		Livestock		Part-time Farm		Ag. Storage and Processing		Other		Total
	(in thousands)
Ending Balance:
Collectively evaluated for impairment:	$	1,151,983	$	511,991	$	581,377	$	167,395	$	66,106	$	2,760	$	2,481,612
Individually evaluated for impairment:	5,698		2,114		10,207		706		—		56		18,781
Total Farm & Ranch	$	1,157,681	$	514,105	$	591,584	$	168,101	$	66,106	$	2,816	$	2,500,393
Allowance for Losses:
Collectively evaluated for impairment:	$	599	$	96	$	308	$	50	$	767	$	1	$	1,821
Individually evaluated for impairment:	97		43		189		14		—		—		343
Total Farm & Ranch	$	696	$	139	$	497	$	64	$	767	$	1	$	2,164

Schedule of Financing Receivable Credit Quality Indicators

The following tables present credit quality indicators related to Farm & Ranch loans and Rural Utilities loans held as of September 30, 2020, by year of origination:

Table 5.9

	As of September 30, 2020
	Year of Origination:
	2020		2019		2018		2017		2016		Prior		Revolving Loans - Amortized Cost Basis		Total
	(in thousands)
Farm & Ranch(1):
Internally Assigned Risk Rating:
Acceptable	$	1,423,112	$	765,367	$	507,218	$	557,095	$	499,642	$	1,157,633	$	472,209	$	5,382,276
Special mention(2)	39,607		124,068		27,757		4,633		10,897		22,236		50,395		279,593
Substandard(3)	7,556		5,926		19,682		57,541		36,490		59,330		8,930		195,455
Total	$	1,470,275	$	895,361	$	554,657	$	619,269	$	547,029	$	1,239,199	$	531,534	$	5,857,324
For the Three Months Ended:
Current period charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Current period recoveries	—		—		—		—		—		—		—		—
Current period Farm & Ranch net charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
For the Nine Months Ended:
Current period charge-offs	$	—	$	—	$	—	$	—	$	—	$	394	$	—	$	394
Current period recoveries	—		—		—		—		—		—		—		—
Current period Farm & Ranch net charge-offs	$	—	$	—	$	—	$	—	$	—	$	394	$	—	$	394

(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 September 30, 2020
	Year of Origination:
	2020		2019		2018		2017		2016		Prior		Revolving Loans - Amortized Cost Basis		Total
	(in thousands)
Rural Utilities(1):
Internally Assigned Risk Rating:
Acceptable	$	502,873	$	819,099	$	8,260	$	92,223	$	31,275	$	638,281	$	12,870	$	2,104,881
Special mention(2)	—		—		—		—		—		—		—		—
Substandard(3)	—		—		—		—		—		4,474		—		4,474
Total	$	502,873	$	819,099	$	8,260	$	92,223	$	31,275	$	642,755	$	12,870	$	2,109,355
For the Three Months Ended:
Current period charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Current period recoveries	—		—		—		—		—		—		—		—
Current period Rural Utilities net charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
For the Nine Months Ended:
Current period charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Current period recoveries	—		—		—		—		—		—		—		—
Current period Rural Utilities net charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

(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.

The following table presents credit quality indicators related to Farm & Ranch loans held as of December 31, 2019:

Table 5.10

	As of December 31, 2019
	Crops		Permanent Plantings		Livestock		Part-time Farm		Ag. Storage and Processing		Other		Total
	(in thousands)
Internally Assigned Risk Rating(1)
Acceptable	$	2,556,956	$	1,050,160	$	825,234	$	343,329	$	10,360	$	4,597	$	4,790,636
Special mention(2)	107,406		111,739		46,107		13,591		—		—		278,843
Substandard(3)	108,815		51,257		39,962		7,044		—		—		207,078
Total	$	2,773,177	$	1,213,156	$	911,303	$	363,964	$	10,360	$	4,597	$	5,276,557
Commodity analysis of past due loans(1)	$	21,167	$	15,828	$	19,354	$	1,370	$	—	$	—	$	57,719

(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.

The following tables present credit quality indicators related to Farm & Ranch loans underlying LTSPCs, Farm & Ranch Farmer Mac Guaranteed Securities, and Rural Utilities loans underlying LTSPCs as of September 30, 2020, by year of origination:

Table 6.10

	As of September 30, 2020
	Year of Origination:
	2020		2019		2018		2017		2016		Prior		Revolving Loans - Amortized Cost Basis		Total
	(in thousands)
Farm & Ranch LTSPCs and Farmer Mac Guaranteed Securities:
Internally Assigned Risk Rating:
Acceptable	$	118,116	$	207,202	$	184,421	$	245,490	$	216,983	$	1,021,400	$	173,617	$	2,167,229
Special mention(1)	—		1,742		1,509		23,200		14,628		47,948		10,040		99,067
Substandard(2)	264		10,821		12,676		15,614		14,401		67,338		4,615		125,729
Total	$	118,380	$	219,765	$	198,606	$	284,304	$	246,012	$	1,136,686	$	188,272	$	2,392,025
For the Three Months Ended:
Current period charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Current period recoveries	—		—		—		—		—		—		—		—
Current period Farm & Ranch net charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
For the Nine Months Ended:
Current period charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Current period recoveries	—		—		—		—		—		—		—		—
Current period Farm & Ranch net charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

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

(2)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 September 30, 2020
	Year of Origination:
	2020		2019		2018		2017		2016		Prior		Revolving Loans - Amortized Cost Basis		Total
	(in thousands)
Rural Utilities LTSPCs:
Internally Assigned Risk Rating:
Acceptable	$	—	$	—	$	—	$	—	$	—	$	569,324	$	6,630	$	575,954
Special mention(1)	—		—		—		—		—		—		—		—
Substandard(2)	—		—		—		—		—		—		—		—
Total	$	—	$	—	$	—	$	—	$	—	$	569,324	$	6,630	$	575,954
For the Three Months Ended
Current period charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Current period recoveries	—		—		—		—		—		—		—		—
Current period Rural Utilities net charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
For the Nine Months Ended:
Current period charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Current period recoveries	—		—		—		—		—		—		—		—
Current period Rural Utilities net charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

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

(2)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.

The following table presents credit quality indicators related to Farm & Ranch loans underlying LTSPCs and off-balance sheet Farm & Ranch Farmer Mac Guaranteed Securities as of December 31, 2019:

Table 6.11

	As of December 31, 2019
	Crops		Permanent Plantings		Livestock		Part-time Farm		Ag. Storage and Processing		Other		Total
	(in thousands)
Internally Assigned Risk Rating(1)
Acceptable	$	1,033,002	$	484,601	$	521,341	$	161,361	$	66,106	$	2,594	$	2,269,005
Special mention(2)	68,372		22,909		35,618		1,612		—		—		128,511
Substandard(3)	56,307		6,595		34,625		5,128		—		222		102,877
Total	$	1,157,681	$	514,105	$	591,584	$	168,101	$	66,106	$	2,816	$	2,500,393
Commodity analysis of past due loans(1)	$	1,493	$	196	$	1,066	$	480	$	—	$	—	$	3,235

(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.

XML

Notes Payable (Tables)

9 Months Ended

Sep. 30, 2020

Debt Disclosure [Abstract]

Schedule of Debt

The following tables set forth information related to Farmer Mac's borrowings as of September 30, 2020 and December 31, 2019:

Table 7.1

	September 30, 2020
	Outstanding as of September 30				Average Outstanding During the First Nine Months
	Amount		Weighted- Average Rate		Amount		Weighted- Average Rate
	(dollars in thousands)
Due within one year:
Discount notes	$	2,358,943	0.21	%	$	2,313,477	0.79	%
Medium-term notes	2,065,148		0.27	%	1,312,909		0.81	%
Current portion of medium-term notes	6,510,992		0.90	%
Total due within one year	$	10,935,083	0.63	%
Due after one year:
Medium-term notes due in:
Two years	$	3,277,494	0.96	%
Three years	2,326,812		1.44	%
Four years	1,056,062		1.73	%
Five years	1,242,150		1.35	%
Thereafter	2,751,684		2.07	%
Total due after one year	10,654,202		1.47	%
Total	$	21,589,285	1.05	%

	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	%

The following table summarizes by maturity date the amounts and costs for Farmer Mac debt callable in 2020 as of September 30, 2020:

Table 7.2

Debt Callable in 2020 as of September 30, 2020, by Maturity
	Amount		Weighted-Average Rate
	(dollars in thousands)
Maturity:
2021	$	215,949	0.17	%
2022	122,918		0.59	%
2023	127,863		0.47	%
2024	59,941		1.33	%
Thereafter	374,144		1.84	%
Total	$	900,815	1.04	%

Schedule of Long-Term Debt Instruments

The following schedule summarizes the earliest interest rate reset date, or debt maturities, of total borrowings outstanding as of September 30, 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	$	10,523,446	0.31	%
2021	3,219,231		1.55	%
2022	1,787,566		1.59	%
2023	2,026,445		1.62	%
2024	919,753		1.77	%
Thereafter	3,112,844		2.09	%
Total	$	21,589,285	1.05	%

XML

Fair Value Disclosures (Tables)

9 Months Ended

Sep. 30, 2020

Fair Value Disclosures [Abstract]

Fair Value Measurements, Recurring and Nonrecurring

The following tables present information about Farmer Mac's assets and liabilities measured at fair value on a recurring basis as of September 30, 2020 and December 31, 2019, respectively, and indicate the fair value hierarchy of the valuation techniques used by Farmer Mac to determine such fair value:

Table 9.1

Assets and Liabilities Measured at Fair Value as of September 30, 2020
	Level 1		Level 2		Level 3(1)		Total
	(in thousands)
Recurring:
Assets:
Investment Securities:
Available-for-sale:
Floating rate auction-rate certificates backed by Government guaranteed student loans	$	—	$	—	$	19,072	$	19,072
Floating rate asset-backed securities	—		9,201		—		9,201
Floating rate Government/GSE guaranteed mortgage-backed securities	—		2,286,033		—		2,286,033
Fixed rate GSE guaranteed mortgage-backed securities	—		318		—		318
Fixed rate U.S. Treasuries	1,217,566		—		—		1,217,566
Total Investment Securities	1,217,566		2,295,552		19,072		3,532,190
Farmer Mac Guaranteed Securities:
Available-for-sale:
AgVantage	—		—		7,511,638		7,511,638
Total Farmer Mac Guaranteed Securities	—		—		7,511,638		7,511,638
USDA Securities:
Trading	—		—		6,830		6,830
Total USDA Securities	—		—		6,830		6,830
Financial derivatives	9		12,828		—		12,837
Total Assets at fair value	$	1,217,575	$	2,308,380	$	7,537,540	$	11,063,495
Liabilities:
Financial derivatives	$	—	$	37,357	$	—	$	37,357
Total Liabilities at fair value	$	—	$	37,357	$	—	$	37,357
Non-recurring:
Assets
Loans held for sale	$	—	$	—	$	22,086	$	22,086
Total non-recurring assets at fair value	$	—	$	—	$	22,086	$	22,086

(1) Level 3 assets represent 32% of total assets and 68% of financial instruments measured at fair value.

Assets and Liabilities Measured at Fair Value as of December 31, 2019
	Level 1		Level 2		Level 3(1)		Total
	(in thousands)
Recurring:
Assets:
Investment Securities:
Available-for-sale:
Floating rate auction-rate certificates backed by Government guaranteed student loans	$	—	$	—	$	18,912	$	18,912
Floating rate asset-backed securities	—		11,085		—		11,085
Floating rate Government/GSE guaranteed mortgage-backed securities	—		1,632,583		—		1,632,583
Fixed rate GSE guaranteed mortgage-backed securities	—		340		—		340
Fixed rate U.S. Treasuries	1,296,923		—		—		1,296,923
Total available-for-sale	1,296,923		1,644,008		18,912		2,959,843
Farmer Mac Guaranteed Securities:
Available-for-sale:
AgVantage	—		—		7,143,025		7,143,025
Total Farmer Mac Guaranteed Securities	—		—		7,143,025		7,143,025
USDA Securities:
Trading	—		—		8,913		8,913
Total USDA Securities	—		—		8,913		8,913
Financial derivatives	—		10,519		—		10,519
Total Assets at fair value	$	1,296,923	$	1,654,527	$	7,170,850	$	10,122,300
Liabilities:
Financial derivatives	$	51	$	26,991	$	—	$	27,042
Total Liabilities at fair value	$	51	$	26,991	$	—	$	27,042

(1) Level 3 assets represent 33% of total assets and 71% of financial instruments measured at fair value.

Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation

The following tables present additional information about assets and liabilities measured at fair value on a recurring basis for which Farmer Mac has used significant unobservable inputs to determine fair value. Net transfers in and/or out of Level 3 are based on the fair values of the assets and liabilities as of the beginning of the reporting period. There were no liabilities measured at fair value using significant unobservable inputs during the three and nine months ended September 30, 2020 and 2019.

Table 9.2

Level 3 Assets and Liabilities Measured at Fair Value for the Three Months Ended September 30, 2020
	Beginning Balance		Purchases		Sales		Settlements		Allowance for losses		Realized and unrealized gains/(losses) included in Income		Unrealized gains/(losses) included in Other Comprehensive Income		Ending Balance
	(in thousands)
Recurring:
Assets:
Investment Securities:
Available-for-sale:
Floating rate auction-rate certificates backed by Government guaranteed student loans	$	18,283	$	—	$	—	$	—	$	1	$	—	$	788	$	19,072
Total available-for-sale	18,283		—		—		—		1		—		788		19,072
Farmer Mac Guaranteed Securities:
Available-for-sale:
AgVantage	7,898,387		122,892		—		(513,864)		(96)		(41,832)		46,151		7,511,638
Total available-for-sale	7,898,387		122,892		—		(513,864)		(96)		(41,832)		46,151		7,511,638
USDA Securities:
Trading	7,786		—		—		(697)		—		(259)		—		6,830
Total USDA Securities	7,786		—		—		(697)				(259)		—		6,830
Total Assets at fair value	$	7,924,456	$	122,892	$	—	$	(514,561)	$	(95)	$	(42,091)	$	46,939	$	7,537,540

Level 3 Assets and Liabilities Measured at Fair Value for the Three Months Ended September 30, 2019
	Beginning Balance		Purchases		Sales		Settlements		Realized and unrealized gains/(losses) included in Income		Unrealized gains/(losses) included in Other Comprehensive Income		Ending Balance
	(in thousands)
Recurring:
Assets:
Investment Securities:
Available-for-sale:
Floating rate auction-rate certificates backed by Government guaranteed student loans	$	19,208	$	—	$	—	$	—	$	—	$	—	$	19,208
Total available-for-sale	19,208		—		—		—		—		—		19,208
Farmer Mac Guaranteed Securities:
Available-for-sale:
AgVantage	7,035,668		340,148		—		(254,593)		84,164		(22,846)		7,182,541
Total available-for-sale	7,035,668		340,148		—		(254,593)		84,164		(22,846)		7,182,541
USDA Securities:
Available-for-sale	—		9,506		(9,506)		—		—		—		—
Trading	9,201		—		—		(307)		49		—		8,943
Total USDA Securities	9,201		9,506		(9,506)		(307)		49		—		8,943
Total Assets at fair value	$	7,064,077	$	349,654	$	(9,506)	$	(254,900)	$	84,213	$	(22,846)	$	7,210,692

Level 3 Assets and Liabilities Measured at Fair Value for the Nine Months Ended September 30, 2020
	Beginning Balance		Purchases		Sales		Settlements		Allowance for Losses		Realized and unrealized gains/(losses) included in Income		Unrealized gains/(losses) included in Other Comprehensive Income		Ending Balance
	(in thousands)
Recurring:
Assets:
Investment Securities:
Available-for-sale:
Floating rate auction-rate certificates backed by Government guaranteed student loans	$	18,912	$	—	$	—	$	—	$	(37)	$	—	$	197	$	19,072
Total available-for-sale	18,912		—		—		—		(37)		—		197		19,072
Farmer Mac Guaranteed Securities:
Available-for-sale:
AgVantage	7,143,025		958,368		—		(826,380)		(330)		257,597		(20,642)		7,511,638
Total available-for-sale	7,143,025		958,368		—		(826,380)		(330)		257,597		(20,642)		7,511,638
USDA Securities:
Trading	8,913		—		—		(1,910)		—		(173)		—		6,830
Total USDA Securities	8,913		—		—		(1,910)				(173)		—		6,830
Total Assets at fair value	$	7,170,850	$	958,368	$	—	$	(828,290)	$	(367)	$	257,424	$	(20,445)	$	7,537,540

Level 3 Assets and Liabilities Measured at Fair Value for the Nine Months Ended September 30, 2019
	Beginning Balance		Purchases		Sales		Settlements		Realized and unrealized gains/(losses) included in Income		Unrealized gains/(losses) included in Other Comprehensive Income		Ending Balance
	(in thousands)
Recurring:
Assets:
Investment Securities:
Available-for-sale:
Floating rate auction-rate certificates backed by Government guaranteed student loans	$	18,715	$	—	$	—	$	—	$	—	$	493	$	19,208
Total available-for-sale	18,715		—		—		—		—		493		19,208
Farmer Mac Guaranteed Securities:
Available-for-sale:
AgVantage	5,974,497		1,730,244		—		(724,906)		258,155		(55,449)		7,182,541
Total available-for-sale	5,974,497		1,730,244		—		(724,906)		258,155		(55,449)		7,182,541
USDA Securities:
Available-for-sale	—		57,853		(57,853)		—		—		—		—
Trading	9,999		—		—		(1,210)		154		—		8,943
Total USDA Securities	9,999		57,853		(57,853)		(1,210)		154		—		8,943
Total Assets at fair value	$	6,003,211	$	1,788,097	$	(57,853)	$	(726,116)	$	258,309	$	(54,956)	$	7,210,692

Fair Value Inputs, Assets and Liabilities, Quantitative Information

The following tables present additional information about the significant unobservable inputs, such as discount rates and constant prepayment rates ("CPR"), used in the fair value measurements categorized in Level 3 of the fair value hierarchy as of September 30, 2020 and December 31, 2019:

Table 9.3

	As of September 30, 2020
Financial Instruments	Fair Value		Valuation Technique	Unobservable Input	Range (Weighted-Average)
	(in thousands)
Assets:
Investment securities:
Floating rate auction-rate certificates backed by Government guaranteed student loans	$	19,072	Indicative bids	Range of broker quotes	97.0% - 97.0% (97.0%)
Farmer Mac Guaranteed Securities:
AgVantage	$	7,511,638	Discounted cash flow	Discount rate	0.8% - 2.3% (1.2%)
USDA Securities	$	6,830	Discounted cash flow	Discount rate	1.3% - 3.3% (2.6%)
				CPR	23% - 49% (43%)

	As of December 31, 2019
Financial Instruments	Fair Value		Valuation Technique	Unobservable Input	Range (Weighted-Average)
	(in thousands)
Assets:
Investment securities:
Floating rate auction-rate certificates backed by Government guaranteed student loans	$	18,912	Indicative bids	Range of broker quotes	96.0% - 96.0% (96.0%)
Farmer Mac Guaranteed Securities:
AgVantage	$	7,143,025	Discounted cash flow	Discount rate	2.3% - 5.5% (2.6%)
USDA Securities	$	8,913	Discounted cash flow	Discount rate	2.3% - 2.6% (2.1%)
				CPR	10% - 21% (19%)

Fair Value, by Balance Sheet Grouping

The following table sets forth the estimated fair values and carrying values for financial assets, liabilities, and guarantees and commitments as of September 30, 2020 and December 31, 2019:

Table 9.4

	As of September 30, 2020				As of December 31, 2019
	Fair Value		Carrying Amount		Fair Value		Carrying Amount
	(in thousands)
Financial assets:
Cash and cash equivalents	$	910,592	$	910,592	$	604,381	$	604,381
Investment securities	3,578,375		3,577,222		3,005,828		3,004,875
Farmer Mac Guaranteed Securities	8,739,103		8,712,208		8,606,451		8,590,476
USDA Securities	2,522,001		2,417,678		2,294,671		2,241,073
Loans	8,450,522		8,105,647		7,317,091		6,981,440
Financial derivatives	12,837		12,837		10,519		10,519
Guarantee and commitment fees receivable	34,801		36,664		36,732		38,442
Financial liabilities:
Notes payable	21,893,043		21,589,285		19,234,079		19,098,648
Debt securities of consolidated trusts held by third parties	1,337,741		1,292,416		1,663,177		1,616,504
Financial derivatives	37,357		37,357		27,042		27,042
Guarantee and commitment obligations	33,278		35,140		34,990		36,700

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Business Segment Reporting (Tables)

9 Months Ended

Sep. 30, 2020

Segment Reporting [Abstract]

Schedule of Segment Reporting Information, by Segment

The following tables present core earnings for Farmer Mac's operating segments and a reconciliation to consolidated net income for the three and nine months ended September 30, 2020 and 2019:

Table 10.1

Core Earnings by Business Segment
For the Three Months Ended September 30, 2020
	Farm & Ranch		USDA Guarantees		Rural  Utilities		Institutional Credit		Corporate		Reconciling Adjustments			Consolidated Net Income
	(in thousands)
Net interest income	$	18,093	$	4,747	$	5,709	$	14,171	$	1,941	$	—		$	44,661
Less: reconciling adjustments(1)(2)(3)	(68)		1,118		1,230		4,430		431		(7,141)			—
Net effective spread	18,025		5,865		6,939		18,601		2,372		(7,141)			—
Guarantee and commitment fees(2)	4,111		213		328		7		—		(1,500)			3,159
Other income/(expense)(3)	443		135		—		—		(125)		(681)			(228)
Non-interest income/(loss)	4,554		348		328		7		(125)		(2,181)			2,931
Release of/(provision for) losses	300		—		(1,182)		228		1		—			(653)
(Provision for)/release of reserve for losses	(628)		—		81		—		—		—			(547)
Other non-interest expense	(5,381)		(1,643)		(1,438)		(2,160)		(3,938)		—			(14,560)
Non-interest expense(4)	(6,009)		(1,643)		(1,357)		(2,160)		(3,938)		—			(15,107)
Core earnings before income taxes	16,870		4,570		4,728		16,676		(1,690)		(9,322)		(5)	31,832
Income tax (expense)/benefit	(3,543)		(960)		(993)		(3,502)		701		1,957			(6,340)
Core earnings before preferred stock dividends	13,327		3,610		3,735		13,174		(989)		(7,365)		(5)	25,492
Preferred stock dividends	—		—		—		—		(5,166)		—			(5,166)
Loss on retirement of preferred stock	—		—		—		—		—		(1,667)			(1,667)
Segment core earnings/(losses)	$	13,327	$	3,610	$	3,735	$	13,174	$	(6,155)	$	(9,032)	(5)	$	18,659
Total assets at carrying value	$	5,961,307	$	2,487,687	$	2,256,011	$	8,716,923	$	4,576,909	$	—		$	23,998,837
Total on- and off-balance sheet program assets at principal balance	$	8,249,349	$	2,735,128	$	2,685,309	$	8,319,502	$	—	$	—		$	21,989,288

(1)Includes the amortization of premiums and discounts on assets consolidated at fair value, originally included in interest income, to reflect core earnings amounts.

(2)Includes the reclassification of interest income and interest expense from consolidated trusts owned by third parties to guarantee and commitment fees, to reflect management's view that the net interest income Farmer Mac earns is effectively a guarantee fee.

(3)Includes the reclassification of interest expense related to interest rate swaps not designated as hedges, which are included in "(Losses)/gains on financial derivatives" on the consolidated financial statements, to determine the effective funding cost for each operating segment.

(4)Includes directly attributable costs and an allocation of indirectly attributable costs based on employee headcount.

(5)Net adjustments to reconcile to the corresponding income measures: core earnings before income taxes reconciled to income before income taxes; core earnings before preferred stock dividends reconciled to net income; and segment core earnings reconciled to net income attributable to common stockholders.

Core Earnings by Business Segment
For the Three Months Ended September 30, 2019
	Farm & Ranch		USDA Guarantees		Rural  Utilities		Institutional Credit		Corporate		Reconciling Adjustments			Consolidated Net Income
	(in thousands)
Net interest income	$	15,345	$	4,491	$	2,602	$	14,853	$	2,821	$	—		$	40,112
Less: reconciling adjustments(1)(2)(3)	(2,164)		(177)		1,900		2,954		(164)		(2,349)			—
Net effective spread	13,181		4,314		4,502		17,807		2,657		(2,349)			—
Guarantee and commitment fees(2)	4,523		250		348		87		—		(1,859)			3,349
Other income/(expense)(3)	390		92		17		—		(110)		(7,170)			(6,781)
Non-interest income/(loss)	4,913		342		365		87		(110)		(9,029)			(3,432)
Provision for loan losses	(760)		—		—		—		—		—			(760)
Release of reserve for losses	137		—		—		—		—		—			137
Other non-interest expense	(5,062)		(1,506)		(913)		(2,277)		(3,837)		—			(13,595)
Non-interest expense(4)	(4,925)		(1,506)		(913)		(2,277)		(3,837)		—			(13,458)
Core earnings before income taxes	12,409		3,150		3,954		15,617		(1,290)		(11,378)		(5)	22,462
Income tax (expense)/benefit	(2,606)		(662)		(830)		(3,280)		360		2,389			(4,629)
Core earnings before preferred stock dividends	9,803		2,488		3,124		12,337		(930)		(8,989)		(5)	17,833
Preferred stock dividends	—		—		—		—		(3,427)		—			(3,427)
Segment core earnings/(losses)	$	9,803	$	2,488	$	3,124	$	12,337	$	(4,357)	$	(8,989)	(5)	$	14,406
Total assets at carrying value	$	4,934,887	$	2,238,558	$	1,692,835	$	8,651,264	$	3,797,690	$	—		$	21,315,234
Total on- and off-balance sheet program assets at principal balance	$	7,393,728	$	2,567,763	$	2,232,602	$	8,738,266	$	—	$	—		$	20,932,359

(1)Includes the amortization of premiums and discounts on assets consolidated at fair value, originally included in interest income, to reflect core earnings amounts.

(2)Includes the reclassification of interest income and interest expense from consolidated trusts owned by third parties to guarantee and commitment fees, to reflect management's view that the net interest income Farmer Mac earns is effectively a guarantee fee.

(3)Includes the reclassification of interest expense related to interest rate swaps not designated as hedges, which are included in "(Losses)/gains on financial derivatives" on the consolidated financial statements, to determine the effective funding cost for each operating segment.

(4)Includes directly attributable costs and an allocation of indirectly attributable costs based on employee headcount.

(5)Net adjustments to reconcile to the corresponding income measures: core earnings before income taxes reconciled to income before income taxes; core earnings before preferred stock dividends reconciled to net income; and segment core earnings reconciled to net income attributable to common stockholders.

Core Earnings by Business Segment
For the Nine Months Ended September 30, 2020
	Farm & Ranch		USDA Guarantees		Rural  Utilities		Institutional Credit		Corporate		Reconciling Adjustments			Consolidated Net Income
	(in thousands)
Net interest income	$	53,768	$	14,691	$	12,778	$	48,059	$	5,025	$	—		$	134,321
Less: reconciling adjustments(1)(2)(3)	(4,072)		488		4,597		7,026		74		(8,113)			—
Net effective spread	49,696		15,179		17,375		55,085		5,099		(8,113)			—
Guarantee and commitment fees(2)	12,822		658		995		23		—		(5,003)			9,495
Other income/(expense)(3)	2,197		864		12		—		(413)		(3,048)			(388)
Non-interest income/(loss)	15,019		1,522		1,007		23		(413)		(8,051)			9,107
(Release of)/provision for losses	412		—		(4,704)		(222)		(28)		—			(4,542)
Provision for reserve for losses	(262)		—		(278)		—		—		—			(540)
Other non-interest expense	(16,632)		(5,045)		(4,428)		(6,606)		(12,171)		—			(44,882)
Non-interest expense(4)	(16,894)		(5,045)		(4,706)		(6,606)		(12,171)		—			(45,422)
Core earnings before income taxes	48,233		11,656		8,972		48,280		(7,513)		(16,164)		(5)	93,464
Income tax (expense)/benefit	(10,129)		(2,448)		(1,884)		(10,139)		1,689		3,395			(19,516)
Core earnings before preferred stock dividends	38,104		9,208		7,088		38,141		(5,824)		(12,769)		(5)	73,948
Preferred stock dividends	—		—		—		—		(12,536)		—			(12,536)
Loss on retirement of preferred stock	—		—		—		—		—		(1,667)			(1,667)
Segment core earnings/(losses)	$	38,104	$	9,208	$	7,088	$	38,141	$	(18,360)	$	(14,436)	(5)	$	59,745
Total assets at carrying value	$	5,961,307	$	2,487,687	$	2,256,011	$	8,716,923	$	4,576,909	$	—		$	23,998,837
Total on- and off-balance sheet program assets at principal balance	$	8,249,349	$	2,735,128	$	2,685,309	$	8,319,502	$	—	$	—		$	21,989,288

(1)Includes the amortization of premiums and discounts on assets consolidated at fair value, originally included in interest income, to reflect core earnings amounts.

(2)Includes the reclassification of interest income and interest expense from consolidated trusts owned by third parties to guarantee and commitment fees, to reflect management's view that the net interest income Farmer Mac earns is effectively a guarantee fee.

(3)Includes the reclassification of interest expense related to interest rate swaps not designated as hedges, which are included in "(Losses)/gains on financial derivatives" on the consolidated financial statements, to determine the effective funding cost for each operating segment.

(4)Includes directly attributable costs and an allocation of indirectly attributable costs based on employee headcount.

(5)Net adjustments to reconcile to the corresponding income measures: core earnings before income taxes reconciled to income before income taxes; core earnings before preferred stock dividends reconciled to net income; and segment core earnings reconciled to net income attributable to common stockholders.

Core Earnings by Business Segment
For the Nine Months Ended September 30, 2019
	Farm & Ranch		USDA Guarantees		Rural  Utilities		Institutional Credit		Corporate		Reconciling Adjustments			Consolidated Net Income
	(in thousands)
Net interest income	$	46,424	$	13,045	$	6,264	$	49,425	$	8,607	$	—		$	123,765
Less: reconciling adjustments(1)(2)(3)	(7,171)		(670)		5,467		2,126		(900)		1,148			—
Net effective spread	39,253		12,375		11,731		51,551		7,707		1,148			—
Guarantee and commitment fees(2)	13,861		712		1,069		261		—		(5,638)			10,265
Other income/(expense)(3)	1,058		92		31		—		494		1,050			2,725
Non-interest income/(loss)	14,919		804		1,100		261		494		(4,588)			12,990
Provision for loan losses	(1,074)		—		—		—		—		—			(1,074)
Release of reserve for losses	424		—		—		—		—		—			424
Other non-interest expense	(14,448)		(4,279)		(2,595)		(6,470)		(10,903)		—			(38,695)
Non-interest expense(4)	(14,024)		(4,279)		(2,595)		(6,470)		(10,903)		—			(38,271)
Core earnings before income taxes	39,074		8,900		10,236		45,342		(2,702)		(3,440)		(5)	97,410
Income tax (expense)/benefit	(8,206)		(1,870)		(2,149)		(9,522)		663		722			(20,362)
Core earnings before preferred stock dividends	30,868		7,030		8,087		35,820		(2,039)		(2,718)		(5)	77,048
Preferred stock dividends	—		—		—		—		(10,508)		—			(10,508)
Loss on retirement of preferred stock	—		—		—		—		—		(1,956)			(1,956)
Segment core earnings/(losses)	$	30,868	$	7,030	$	8,087	$	35,820	$	(12,547)	$	(4,674)	(5)	$	64,584
Total assets at carrying value	$	4,934,887	$	2,238,558	$	1,692,835	$	8,651,264	$	3,797,690	$	—		$	21,315,234
Total on- and off-balance sheet program assets at principal balance	$	7,393,728	$	2,567,763	$	2,232,602	$	8,738,266	$	—	$	—		$	20,932,359

(1)Includes the amortization of premiums and discounts on assets consolidated at fair value, originally included in interest income, to reflect core earnings amounts.

(2)Includes the reclassification of interest income and interest expense from consolidated trusts owned by third parties to guarantee and commitment fees, to reflect management's view that the net interest income Farmer Mac earns is effectively a guarantee fee.

(3)Includes the reclassification of interest expense related to interest rate swaps not designated as hedges, which are included in "(Losses)/gains on financial derivatives" on the consolidated financial statements, to determine the effective funding cost for each operating segment.

(4)Includes directly attributable costs and an allocation of indirectly attributable costs based on employee headcount.

(5)Net adjustments to reconcile to the corresponding income measures: core earnings before income taxes reconciled to income before income taxes; core earnings before preferred stock dividends reconciled to net income; and segment core earnings reconciled to net income attributable to common stockholders.

XML

Summary of Significant Accounting Policies - Narrative (Details)	Sep. 30, 2020 subsidiary
Accounting Policies [Abstract]
Number of subsidiaries	2

XML

Summary of Significant Accounting Policies - Consolidation of Variable Interest Entities (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Variable Interest Entity [Line Items]
Loans held for investment, at amortized cost	$ 6,825,061	$ 5,390,977
Debt securities of consolidated trusts held by third parties	21,589,285	19,098,648
Farm & Ranch
Variable Interest Entity [Line Items]
Loans held for investment, at amortized cost	5,857,324
Borrower remittances	16,000	15,600
USDA Guarantees
Variable Interest Entity [Line Items]
Unamortized Premium/(Discount)	(100)	(200)
On-Balance Sheet:
Variable Interest Entity [Line Items]
Loans held for investment, at amortized cost		5,276,557
On-Balance Sheet: | Variable Interest Entity, Primary Beneficiary
Variable Interest Entity [Line Items]
Loans held for investment, at amortized cost	1,276,407	1,600,917
Debt securities of consolidated trusts held by third parties	1,292,416	1,616,504
On-Balance Sheet: | Farm & Ranch
Variable Interest Entity [Line Items]
Loans held for investment, at amortized cost		5,276,557
Off-Balance Sheet:
Variable Interest Entity [Line Items]
Loans held for investment, at amortized cost		2,500,393
Off-Balance Sheet: | Variable Interest Entity, Not Primary Beneficiary
Variable Interest Entity [Line Items]
Maximum exposure to loss	396,449	496,538
Farmer Mac Guaranteed Securities
Variable Interest Entity [Line Items]
Carrying value	7,511,638	7,143,025
Farmer Mac Guaranteed Securities | On-Balance Sheet: | Variable Interest Entity, Not Primary Beneficiary
Variable Interest Entity [Line Items]
Carrying value	36,505	32,041
Maximum exposure to loss	36,414	31,887
Investment securities
Variable Interest Entity [Line Items]
Carrying value	3,532,190	2,959,843
Unamortized Premium/(Discount)	9,439	1,382
Investment securities | On-Balance Sheet: | Variable Interest Entity, Not Primary Beneficiary
Variable Interest Entity [Line Items]
Carrying value	1,835,688	1,117,203
Maximum exposure to loss	1,829,604	1,120,765
Operating Segments | On-Balance Sheet: | Farm & Ranch | Variable Interest Entity, Primary Beneficiary
Variable Interest Entity [Line Items]
Loans held for investment, at amortized cost	1,276,407	1,600,917
Debt securities of consolidated trusts held by third parties	1,292,416	1,616,504
Operating Segments | On-Balance Sheet: | USDA Guarantees | Variable Interest Entity, Primary Beneficiary
Variable Interest Entity [Line Items]
Loans held for investment, at amortized cost	0	0
Debt securities of consolidated trusts held by third parties	0	0
Operating Segments | Off-Balance Sheet: | Farm & Ranch | Variable Interest Entity, Not Primary Beneficiary
Variable Interest Entity [Line Items]
Maximum exposure to loss	85,767	107,322
Operating Segments | Off-Balance Sheet: | USDA Guarantees | Variable Interest Entity, Not Primary Beneficiary
Variable Interest Entity [Line Items]
Maximum exposure to loss	310,682	389,216
Operating Segments | Farmer Mac Guaranteed Securities | On-Balance Sheet: | Farm & Ranch | Variable Interest Entity, Not Primary Beneficiary
Variable Interest Entity [Line Items]
Carrying value	0	0
Maximum exposure to loss	0	0
Operating Segments | Farmer Mac Guaranteed Securities | On-Balance Sheet: | USDA Guarantees | Variable Interest Entity, Not Primary Beneficiary
Variable Interest Entity [Line Items]
Carrying value	36,505	32,041
Maximum exposure to loss	36,414	31,887
Operating Segments | Investment securities | On-Balance Sheet: | Farm & Ranch | Variable Interest Entity, Not Primary Beneficiary
Variable Interest Entity [Line Items]
Carrying value	0	0
Maximum exposure to loss	0	0
Operating Segments | Investment securities | On-Balance Sheet: | USDA Guarantees | Variable Interest Entity, Not Primary Beneficiary
Variable Interest Entity [Line Items]
Carrying value	0	0
Maximum exposure to loss	0	0
Corporate | On-Balance Sheet: | Variable Interest Entity, Primary Beneficiary
Variable Interest Entity [Line Items]
Loans held for investment, at amortized cost	0	0
Debt securities of consolidated trusts held by third parties	0	0
Corporate | Off-Balance Sheet: | Variable Interest Entity, Not Primary Beneficiary
Variable Interest Entity [Line Items]
Maximum exposure to loss	0	0
Corporate | Farmer Mac Guaranteed Securities | On-Balance Sheet: | Variable Interest Entity, Not Primary Beneficiary
Variable Interest Entity [Line Items]
Carrying value	0	0
Maximum exposure to loss	0	0
Corporate | Investment securities | On-Balance Sheet: | Variable Interest Entity, Not Primary Beneficiary
Variable Interest Entity [Line Items]
Carrying value	1,835,688	1,117,203
Maximum exposure to loss	$ 1,829,604	$ 1,120,765

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Summary of Significant Accounting Policies - Earnings Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Basic EPS
Net income attributable to common stockholders	$ 18,659	$ 14,406	$ 59,745	$ 64,584
Weighted-Average Shares (in shares)	10,734,000	10,706,000	10,725,000	10,691,000
Dollars per share (in dollars per share)	$ 1.74	$ 1.34	$ 5.57	$ 6.04
Effect of dilutive securities
SARs and restricted stock (in shares)	51,000	70,000	56,000	83,000
SARs and restricted stock (in dollars per share)	$ (0.01)	$ (0.01)	$ (0.03)	$ (0.05)
Net income, Diluted EPS	$ 18,659	$ 14,406	$ 59,745	$ 64,584
Weighted-Average Shares, Diluted EPS (in shares)	10,785,000	10,776,000	10,781,000	10,774,000
Diluted EPS (in dollars per share)	$ 1.73	$ 1.33	$ 5.54	$ 5.99
Stock Appreciation Rights and Restricted Stock
Effect of dilutive securities
Antidilutive securities excluded from earnings per share (in shares)	66,445	26,768	78,963	48,801
Performance Shares
Effect of dilutive securities
Antidilutive securities excluded from earnings per share (in shares)	12,680	8,414	12,680	10,994

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Summary of Significant Accounting Policies - Schedule of Accumulated Other Comprehensive Income, Net of Tax (Details) - USD ($) $ in Thousands	3 Months Ended						9 Months Ended
	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Sep. 30, 2020	Sep. 30, 2019
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning Balance	$ 824,116	$ 693,617	$ 799,276	$ 773,742	$ 763,298	$ 752,557	$ 799,276	$ 752,557
Other comprehensive income/(loss) before reclassifications	39,003			(23,986)			(29,894)	(53,987)
Amounts reclassified from AOCI	(1,343)			(6,195)			(7,782)	(13,993)
Other comprehensive income/(loss) net of tax	37,660	29,940	(105,276)	(30,181)	(34,097)	(3,702)	(37,676)	(67,980)
Ending balance	930,345	824,116	693,617	750,259	773,742	763,298	930,345	750,259
Accumulated Net Investment Gain (Loss) Including Portion Attributable to Noncontrolling Interest | Available-for-Sale Securities
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning Balance	(88,261)		(43,397)	(45,384)		(25,360)	(43,397)	(25,360)
Other comprehensive income/(loss) before reclassifications	38,099			(18,915)			(5,210)	(37,308)
Amounts reclassified from AOCI	(783)			(776)			(2,338)	(2,407)
Other comprehensive income/(loss) net of tax	37,316			(19,691)			(7,548)	(39,715)
Ending balance	(50,945)	(88,261)		(65,075)	(45,384)		(50,945)	(65,075)
Accumulated Net Investment Gain (Loss) Including Portion Attributable to Noncontrolling Interest | Held-to-Maturity Securities
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning Balance	26,379		32,845	38,021		43,443	32,845	43,443
Other comprehensive income/(loss) before reclassifications	0			0			0	0
Amounts reclassified from AOCI	(1,993)			(5,169)			(8,459)	(10,591)
Other comprehensive income/(loss) net of tax	(1,993)			(5,169)			(8,459)	(10,591)
Ending balance	24,386	26,379		32,852	38,021		24,386	32,852
Cash Flow Hedges
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning Balance	(29,615)		(5,609)	(5,480)		6,873	(5,609)	6,873
Other comprehensive income/(loss) before reclassifications	904			(5,071)			(24,684)	(16,679)
Amounts reclassified from AOCI	1,433			(250)			3,015	(995)
Other comprehensive income/(loss) net of tax	2,337			(5,321)			(21,669)	(17,674)
Ending balance	(27,278)	(29,615)		(10,801)	(5,480)		(27,278)	(10,801)
Accumulated Other Comprehensive Income (Loss)
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning Balance	(91,497)	(121,437)	(16,161)	(12,843)	21,254	24,956	(16,161)	24,956
Other comprehensive income/(loss) net of tax	37,660	29,940	(105,276)	(30,181)	(34,097)	(3,702)
Ending balance	$ (53,837)	$ (91,497)	$ (121,437)	$ (43,024)	$ (12,843)	$ 21,254	$ (53,837)	$ (43,024)

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Summary of Significant Accounting Policies - Schedule of Reclassification out of Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands	3 Months Ended						9 Months Ended
	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Sep. 30, 2020	Sep. 30, 2019
Before Tax
Unrealized holding (losses)/gains on available-for-sale-securities, before tax	$ 48,226			$ (23,943)			$ (6,596)	$ (47,225)
Other comprehensive income/(loss) before tax	47,671			(38,204)			(47,690)	(86,051)
Provision (Benefit)
Unrealized holding gains/(losses) on available-for-sale securities, provision (benefit)	10,127			(5,028)			(1,386)	(9,917)
Other comprehensive income/(loss), provision (benefit)	10,011			(8,023)			(10,014)	(18,071)
After Tax
Unrealized holding gains/(losses) on available-for-sale securities, after tax	38,099			(18,915)			(5,210)	(37,308)
Reclassification adjustments, after tax	(1,343)			(6,195)			(7,782)	(13,993)
Unrealized gains/(losses) on cash flow hedges	39,003			(23,986)			(29,894)	(53,987)
Other comprehensive income/(loss) net of tax	37,660	$ 29,940	$ (105,276)	(30,181)	$ (34,097)	$ (3,702)	(37,676)	(67,980)
Cash Flow Hedges
Before Tax
Unrealized gain/(losses) on cash flow hedges, before taxes	1,145			(6,419)			(31,246)	(21,113)
Other comprehensive income/(loss) before tax	2,959			(6,736)			(27,429)	(22,373)
Provision (Benefit)
Unrealized gains/(losses) on cash flow hedges, provision (benefit)	241			(1,348)			(6,562)	(4,434)
Other comprehensive income/(loss), provision (benefit)	622			(1,415)			(5,760)	(4,699)
After Tax
Reclassification adjustments, after tax	1,433			(250)			3,015	(995)
Unrealized gains/(losses) on cash flow hedges	904			(5,071)			(24,684)	(16,679)
Other comprehensive income/(loss) net of tax	2,337			(5,321)			(21,669)	(17,674)
Available-for-Sale Securities | Accumulated Net Investment Gain (Loss) Including Portion Attributable to Noncontrolling Interest
Before Tax
Other comprehensive income/(loss) before tax	47,235			(24,925)			(9,554)	(50,272)
Provision (Benefit)
Other comprehensive income/(loss), provision (benefit)	9,919			(5,234)			(2,006)	(10,557)
After Tax
Reclassification adjustments, after tax	(783)			(776)			(2,338)	(2,407)
Unrealized gains/(losses) on cash flow hedges	38,099			(18,915)			(5,210)	(37,308)
Other comprehensive income/(loss) net of tax	37,316			(19,691)			(7,548)	(39,715)
Held-to-Maturity Securities | Accumulated Net Investment Gain (Loss) Including Portion Attributable to Noncontrolling Interest
Before Tax
Other comprehensive income/(loss) before tax	(2,523)			(6,543)			(10,707)	(13,406)
Provision (Benefit)
Other comprehensive income/(loss), provision (benefit)	(530)			(1,374)			(2,248)	(2,815)
After Tax
Reclassification adjustments, after tax	(1,993)			(5,169)			(8,459)	(10,591)
Unrealized gains/(losses) on cash flow hedges	0			0			0	0
Other comprehensive income/(loss) net of tax	(1,993)			(5,169)			(8,459)	(10,591)
Net Interest Income | Available-for-Sale Securities | Accumulated Net Investment Gain (Loss) Including Portion Attributable to Noncontrolling Interest | Reclassification adjustments
Before Tax
Reclassification adjustments, before tax	(976)			(961)			(2,916)	(2,870)
Provision (Benefit)
Reclassification adjustments, provision (benefit)	(205)			(202)			(612)	(603)
After Tax
Reclassification adjustments, after tax	(771)			(759)			(2,304)	(2,267)
Net Interest Income | Held-to-Maturity Securities | Accumulated Net Investment Gain (Loss) Including Portion Attributable to Noncontrolling Interest | Reclassification adjustments
Before Tax
Reclassification adjustments, before tax	(2,523)			(6,543)			(10,707)	(13,406)
Provision (Benefit)
Reclassification adjustments, provision (benefit)	(530)			(1,374)			(2,248)	(2,815)
After Tax
Reclassification adjustments, after tax	(1,993)			(5,169)			(8,459)	(10,591)
Other Income | Available-for-Sale Securities | Accumulated Net Investment Gain (Loss) Including Portion Attributable to Noncontrolling Interest | Reclassification adjustments
Before Tax
Reclassification adjustments, before tax	(15)			(21)			(42)	(177)
Provision (Benefit)
Reclassification adjustments, provision (benefit)	(3)			(4)			(8)	(37)
After Tax
Reclassification adjustments, after tax	(12)			(17)			(34)	(140)
Interest Expense | Cash Flow Hedges | Reclassification adjustments
Before Tax
Reclassification adjustments, before tax	1,814			(317)			3,817	(1,260)
Provision (Benefit)
Reclassification adjustments, provision (benefit)	381			(67)			802	(265)
After Tax
Reclassification adjustments, after tax	$ 1,433			$ (250)			$ 3,015	$ (995)

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Summary of Significant Accounting Policies - CECL Adoption (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2020	Dec. 31, 2019	Jun. 30, 2020	Mar. 31, 2020	Jan. 01, 2020	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Jan. 01, 2019	Dec. 31, 2018
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Accounting Standards Update [Extensible List]	us-gaap:AccountingStandardsUpdate201613Member	us-gaap:AccountingStandardsUpdate201613Member
Allowance for loans receivable		$ 12,618
Long-term standby purchase commitments and guarantees	$ 3,568	2,164
Transition Adjustment	15,821	10,454
Investment Securities		0
Retained earnings	930,345	799,276	$ 824,116	$ 693,617		$ 750,259	$ 773,742	$ 763,298		$ 752,557
Cumulative Effect, Period of Adoption, Adjustment
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Transition Adjustment					$ 2,656
Investment Securities					9
Retained earnings		(2,099)
Cumulative Effect, Period of Adoption, Adjusted Balance
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Transition Adjustment					15,274
Investment Securities					9
Retained earnings		797,177
Retained Earnings
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Retained earnings	$ 488,717	457,047	478,647	$ 455,545		435,479	428,569	$ 407,755		393,351
Retained Earnings | Cumulative Effect, Period of Adoption, Adjustment
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Retained earnings		(2,099)			(2,099)
Retained Earnings | Cumulative Effect, Period of Adoption, Adjusted Balance
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Retained earnings		454,948			454,948
Farm & Ranch
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Accounting Standards Update [Extensible List]	us-gaap:AccountingStandardsUpdate201613Member
Allowance for loans receivable		10,454
Long-term standby purchase commitments and guarantees	$ 2,278	2,164	1,650		2,016	1,743	1,880		$ 2,167	2,167
Transition Adjustment	$ 5,739	10,454	6,039			8,024	7,264			7,017
Farm & Ranch | Cumulative Effect, Period of Adoption, Adjustment
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Long-term standby purchase commitments and guarantees			0		(148)		0		0
Transition Adjustment		(3,909)	0		(3,909)		0			0
Farm & Ranch | Cumulative Effect, Period of Adoption, Adjusted Balance
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Long-term standby purchase commitments and guarantees					2,016
Transition Adjustment		6,545	6,039		6,545		7,264			7,017
Rural  Utilities
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Accounting Standards Update [Extensible List]	us-gaap:AccountingStandardsUpdate201613Member
Allowance for loans receivable		0
Long-term standby purchase commitments and guarantees	$ 1,290	0	1,370		1,011	0	0		0	0
Transition Adjustment	$ 10,082	0	8,900			$ 0	0			0
Rural  Utilities | Cumulative Effect, Period of Adoption, Adjustment
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Long-term standby purchase commitments and guarantees			0		1,011		0		$ 0
Transition Adjustment		5,378	0		5,378		0			0
Rural  Utilities | Cumulative Effect, Period of Adoption, Adjusted Balance
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Long-term standby purchase commitments and guarantees					1,011
Transition Adjustment		5,378	$ 8,900		5,378		$ 0			$ 0
AgVantage Securities
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Allowance for loans receivable		$ 0
AgVantage Securities | Cumulative Effect, Period of Adoption, Adjustment
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Transition Adjustment					315
AgVantage Securities | Cumulative Effect, Period of Adoption, Adjusted Balance
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Transition Adjustment					$ 315

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Investment Securities - Schedule of Investment Securities (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Held-to-maturity:
Allowance for losses	$ (216)
Investment securities
Available-for-sale:
Amount Outstanding	3,513,235	$ 2,960,048
Unamortized Premium/(Discount)	9,439	1,382
Amortized cost of available-for-sale investment securities	3,522,674	2,961,430
Allowance for losses	(37)
Unrealized Gains	13,309	3,959
Unrealized Losses	(3,756)	(5,546)
Available-for-sale, at fair value	3,532,190	2,959,843
Held-to-maturity:
Unamortized Premium/(Discount)	9,439	1,382
Total investment securities
Amount Outstanding	3,558,267	3,005,080
Unamortized Premium/(Discount)	9,439	1,382
Amortized Cost	3,567,706	3,006,462
Allowance for losses	(37)
Unrealized Gains	14,462	4,912
Unrealized Losses	(3,756)	(5,546)
Fair Value	3,578,375	3,005,828
Accrued interest excluded	5,700
Available-for-Sale Securities | Investment securities
Available-for-sale:
Unamortized Premium/(Discount)	9,439	1,382
Held-to-maturity:
Unamortized Premium/(Discount)	9,439	1,382
Total investment securities
Unamortized Premium/(Discount)	9,439	1,382
Floating Interest Rate | Floating rate auction-rate certificates backed by Government guaranteed student loans
Available-for-sale:
Amount Outstanding	19,700	19,700
Amortized cost of available-for-sale investment securities	19,700	19,700
Allowance for losses	(37)
Unrealized Gains	0	0
Unrealized Losses	(591)	(788)
Available-for-sale, at fair value	19,072	18,912
Floating Interest Rate | Floating rate asset-backed securities
Available-for-sale:
Amount Outstanding	9,205	11,092
Amortized cost of available-for-sale investment securities	9,205	11,092
Allowance for losses	0
Unrealized Gains	0	0
Unrealized Losses	(4)	(7)
Available-for-sale, at fair value	9,201	11,085
Floating Interest Rate | Guaranteed mortgage-backed securities
Available-for-sale:
Amount Outstanding	2,279,737	1,633,731
Amortized cost of available-for-sale investment securities	2,279,770	1,634,905
Allowance for losses	0
Unrealized Gains	9,415	2,414
Unrealized Losses	(3,152)	(4,736)
Available-for-sale, at fair value	2,286,033	1,632,583
Floating Interest Rate | Available-for-Sale Securities | Floating rate auction-rate certificates backed by Government guaranteed student loans
Available-for-sale:
Unamortized Premium/(Discount)	0	0
Held-to-maturity:
Unamortized Premium/(Discount)	0	0
Total investment securities
Unamortized Premium/(Discount)	0	0
Floating Interest Rate | Available-for-Sale Securities | Floating rate asset-backed securities
Available-for-sale:
Unamortized Premium/(Discount)	0	0
Held-to-maturity:
Unamortized Premium/(Discount)	0	0
Total investment securities
Unamortized Premium/(Discount)	0	0
Floating Interest Rate | Available-for-Sale Securities | Guaranteed mortgage-backed securities
Available-for-sale:
Unamortized Premium/(Discount)	33	1,174
Held-to-maturity:
Unamortized Premium/(Discount)	33	1,174
Total investment securities
Unamortized Premium/(Discount)	33	1,174
Fixed Interest Rate | Guaranteed mortgage-backed securities
Available-for-sale:
Amount Outstanding	285	315
Amortized cost of available-for-sale investment securities	285	315
Allowance for losses	0
Unrealized Gains	33	25
Unrealized Losses	0	0
Available-for-sale, at fair value	318	340
Held-to-maturity:
Amount Outstanding	45,032	45,032
Amortized Cost	45,032	45,032
Allowance for losses	0
Unrealized Gains	1,153	953
Unrealized Losses	0	0
Fair Value	$ 46,185	$ 45,985
Total investment securities
Held-to-maturity investment securities weighted average yield	1.50%	3.30%
Fixed Interest Rate | Fixed rate U.S. Treasuries
Available-for-sale:
Amount Outstanding	$ 1,204,308	$ 1,295,210
Amortized cost of available-for-sale investment securities	1,213,714	1,295,418
Allowance for losses	0
Unrealized Gains	3,861	1,520
Unrealized Losses	(9)	(15)
Available-for-sale, at fair value	1,217,566	1,296,923
Fixed Interest Rate | Available-for-Sale Securities | Guaranteed mortgage-backed securities
Available-for-sale:
Unamortized Premium/(Discount)	0	0
Held-to-maturity:
Unamortized Premium/(Discount)	0	0
Total investment securities
Unamortized Premium/(Discount)	0	0
Fixed Interest Rate | Available-for-Sale Securities | Fixed rate U.S. Treasuries
Available-for-sale:
Unamortized Premium/(Discount)	9,406	208
Held-to-maturity:
Unamortized Premium/(Discount)	9,406	208
Total investment securities
Unamortized Premium/(Discount)	9,406	208
Fixed Interest Rate | Held-to-Maturity Securities | Guaranteed mortgage-backed securities
Available-for-sale:
Unamortized Premium/(Discount)	0	0
Held-to-maturity:
Unamortized Premium/(Discount)	0	0
Total investment securities
Unamortized Premium/(Discount)	$ 0	$ 0

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Investment Securities - Unrealized Loss Position (Details) $ in Thousands	Sep. 30, 2020 USD ($) security	Dec. 31, 2019 USD ($) security
Unrealized loss position for less than 12 months
Fair Value	$ 205,313	$ 879,683
Unrealized Loss	(473)	(2,260)
Unrealized loss position for more than 12 months
Fair Value	429,414	464,035
Unrealized Loss	$ (3,283)	$ (3,286)
Investment securities
Unrealized loss position for less than 12 months
Number of securities in loss position | security	27	57
Unrealized loss position for more than 12 months
Number of securities in loss position | security	63	62
Floating Interest Rate | Floating rate auction-rate certificates backed by Government guaranteed student loans
Unrealized loss position for less than 12 months
Fair Value	$ 0	$ 0
Unrealized Loss	0	0
Unrealized loss position for more than 12 months
Fair Value	19,072	18,912
Unrealized Loss	(591)	(788)
Floating Interest Rate | Floating rate asset-backed securities
Unrealized loss position for less than 12 months
Fair Value	0	2,583
Unrealized Loss	0	(1)
Unrealized loss position for more than 12 months
Fair Value	6,873	8,502
Unrealized Loss	(4)	(6)
Floating Interest Rate | Guaranteed mortgage-backed securities
Unrealized loss position for less than 12 months
Fair Value	154,452	841,993
Unrealized Loss	(464)	(2,244)
Unrealized loss position for more than 12 months
Fair Value	403,469	436,621
Unrealized Loss	(2,688)	(2,492)
Fixed Interest Rate | Fixed rate U.S. Treasuries
Unrealized loss position for less than 12 months
Fair Value	50,861	35,107
Unrealized Loss	(9)	(15)
Unrealized loss position for more than 12 months
Fair Value	0	0
Unrealized Loss	$ 0	$ 0

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Investment Securities - Narrative (Details)	Sep. 30, 2020
Investment securities
Debt Securities, Available-for-sale [Line Items]
Average percent of amortized cost for securities in unrealized loss positions for more than 12 months	99.20%

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Investment Securities - Debt Maturities (Details) - Investment securities - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Amortized Cost
Due within one year	$ 1,142,369
Due after one year through five years	361,971
Due after five years through ten years	1,129,147
Due after ten years	889,187
Amortized Cost	3,522,674	$ 2,961,430
Fair Value
Due within one year	1,146,222
Due after one year through five years	362,065
Due after five years through ten years	1,134,255
Due after ten years	889,648
Total	$ 3,532,190	$ 2,959,843
Weighted- Average Yield
Due within one year	2.01%
Due after one year through five years	0.76%
Due after five years through ten years	0.67%
Due after ten years	0.69%
Total	1.12%

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Farmer Mac Guaranteed Securities and USDA Securities (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019	Sep. 30, 2020
Held-to-maturity:
Allowance for losses			$ (216)
Farmer Mac Guaranteed Securities and USDA Securities
Held-to-maturity:
Unpaid Principal Balance		$ 3,638,142	3,582,183
Amortized Cost		3,679,611	3,611,634
Unrealized Gains		70,495	132,716
Unrealized Losses		(922)	(1,498)
Fair Value			3,742,636
Fair Value		3,749,184	3,742,636
Farmer Mac Guaranteed Securities
Held-to-maturity:
Unpaid Principal Balance		1,447,471	1,200,767
Amortized Cost		1,447,451	1,200,786
Allowance for losses			(216)
Unrealized Gains		16,139	26,995
Unrealized Losses		(164)	(100)
Fair Value			1,227,465
Fair Value		1,463,426
Available-for-sale:
Amortized Cost			7,150,606
Carrying value			7,511,638
USDA Securities:
Trading:
Fair Value		8,913	6,830
Held-to-Maturity Securities | Farmer Mac Guaranteed Securities and USDA Securities
Held-to-maturity:
Unamortized Premium/(Discount)		41,469	29,451
Available-for-sale:
Unamortized Premium/(Discount)		41,469	29,451
Trading:
Unamortized Premium/(Discount)		41,469	29,451
Held-to-Maturity Securities | Farmer Mac Guaranteed Securities
Held-to-maturity:
Unamortized Premium/(Discount)		(20)	19
Available-for-sale:
Unamortized Premium/(Discount)		(20)	19
Trading:
Unamortized Premium/(Discount)		(20)	19
AgVantage Securities
Trading:
Available-for-sale, accrued interest excluded			32,700
Held-to-maturity, accrued interest excluded			41,100
Trading securities, accrued interest excluded			100
AgVantage Securities | Farmer Mac Guaranteed Securities
Held-to-maturity:
Unpaid Principal Balance		1,415,584	1,164,353
Amortized Cost		1,415,410	1,164,280
Allowance for losses			(216)
Unrealized Gains		15,300	25,969
Unrealized Losses		(164)	(99)
Fair Value			1,189,934
Fair Value		1,430,546
Available-for-sale:
Unpaid Principal Balance		7,017,095	7,149,082
Amortized Cost		7,016,971	7,150,606
Allowance for losses			(330)
Unrealized Gains		161,316	394,280
Unrealized Losses		(35,262)	(32,918)
Carrying value		7,143,025	7,511,638
AgVantage Securities | Held-to-Maturity Securities | Farmer Mac Guaranteed Securities
Held-to-maturity:
Unamortized Premium/(Discount)		(174)	(73)
Available-for-sale:
Unamortized Premium/(Discount)		(174)	(73)
Trading:
Unamortized Premium/(Discount)		(174)	(73)
AgVantage Securities | Available-for-Sale Securities | Farmer Mac Guaranteed Securities
Held-to-maturity:
Unamortized Premium/(Discount)		(124)	1,524
Available-for-sale:
Unamortized Premium/(Discount)		(124)	1,524
Trading:
Unamortized Premium/(Discount)		(124)	1,524
USDA Guarantees
Held-to-maturity:
Unamortized Premium/(Discount)		(200)	(100)
Available-for-sale:
Unamortized Premium/(Discount)		(200)	(100)
Trading:
Unamortized Premium/(Discount)		(200)	(100)
USDA Guarantees | Farmer Mac Guaranteed Securities
Held-to-maturity:
Unpaid Principal Balance		31,887	36,414
Amortized Cost		32,041	36,506
Allowance for losses			0
Unrealized Gains		839	1,026
Unrealized Losses		0	(1)
Fair Value			37,531
Fair Value		32,880
USDA Guarantees | USDA Securities:
Held-to-maturity:
Unpaid Principal Balance		2,190,671	2,381,416
Amortized Cost		2,232,160	2,410,848
Allowance for losses			0
Unrealized Gains		54,356	105,721
Unrealized Losses		(758)	(1,398)
Fair Value			2,515,171
Fair Value		2,285,758
Trading:
Unpaid Principal Balance		8,400	6,617
Amortized Cost		8,879	6,969
Allowance for losses			0
Unrealized Gains	$ 10	61
Unrealized Losses	$ (149)	(27)
Fair Value		$ 8,913	$ 6,830
Trading securities, weighted-average yield		5.20%	5.09%
USDA Guarantees | Held-to-Maturity Securities | Farmer Mac Guaranteed Securities
Held-to-maturity:
Unamortized Premium/(Discount)		$ 154	$ 92
Available-for-sale:
Unamortized Premium/(Discount)		154	92
Trading:
Unamortized Premium/(Discount)		154	92
USDA Guarantees | Held-to-Maturity Securities | USDA Securities:
Held-to-maturity:
Unamortized Premium/(Discount)		41,489	29,432
Available-for-sale:
Unamortized Premium/(Discount)		41,489	29,432
Trading:
Unamortized Premium/(Discount)		41,489	29,432
USDA Guarantees | Trading Securities | USDA Securities:
Held-to-maturity:
Unamortized Premium/(Discount)		479	352
Available-for-sale:
Unamortized Premium/(Discount)		479	352
Trading:
Unamortized Premium/(Discount)		$ 479	$ 352

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Farmer Mac Guaranteed Securities and USDA Securities - Unrealized Loss Position (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Unrealized loss position for less than 12 months
Fair Value	$ 205,313	$ 879,683
Unrealized Loss	(473)	(2,260)
Unrealized loss position for more than 12 months
Fair Value	429,414	464,035
Unrealized Loss	(3,283)	(3,286)
Farmer Mac Guaranteed Securities and USDA Securities
Unrealized loss position for less than 12 months
Fair Value	49,946	0
Unrealized Loss	(100)	0
Unrealized loss position for more than 12 months
Fair Value	21,521	328,925
Unrealized Loss	(1,398)	(922)
AgVantage Securities | Farmer Mac Guaranteed Securities
Unrealized loss position for less than 12 months
Fair Value	49,901	0
Unrealized Loss	(99)	0
Unrealized loss position for more than 12 months
Fair Value	0	301,836
Unrealized Loss	0	(164)
Unrealized loss position for less than 12 months
Fair Value	333,544	225,239
Unrealized Loss	(445)	(2,203)
Unrealized loss position for more than 12 months
Fair Value	972,161	1,394,802
Unrealized Loss	(32,473)	(33,059)
USDA Securities | Farmer Mac Guaranteed Securities
Unrealized loss position for less than 12 months
Fair Value	45
Unrealized Loss	(1)
Unrealized loss position for more than 12 months
Fair Value	0
Unrealized Loss	0
USDA Securities | USDA Securities:
Unrealized loss position for less than 12 months
Fair Value	0	0
Unrealized Loss	0	0
Unrealized loss position for more than 12 months
Fair Value	21,521	27,089
Unrealized Loss	$ (1,398)	$ (758)

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Farmer Mac Guaranteed Securities and USDA Securities - Narrative (Details) $ in Millions	Sep. 30, 2020 USD ($) security	Dec. 31, 2019 security
USDA Securities | USDA Securities: | Payment Deferral, CARES Act | Loans Insured or Guaranteed by US Government Authorities, CARES Act
Debt Securities, Available-for-sale [Line Items]
Unpaid principal balances | $	$ 83.8
AgVantage Securities | Farmer Mac Guaranteed Securities
Debt Securities, Available-for-sale [Line Items]
Available-for-sale, securities in unrealized loss positions	12	17
Held-to-maturity, securities in unrealized loss positions	2	4
Number of securities in loss position	7	13

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Farmer Mac Guaranteed Securities and USDA Securities - Schedule of Available-for-sale Securities (Details) - Farmer Mac Guaranteed Securities $ in Thousands	Sep. 30, 2020 USD ($)
Amortized Cost
Due within one year	$ 1,461,551
Due after one year through five years	3,102,003
Due after five years through ten years	1,073,248
Due after ten years	1,513,804
Amortized Cost	7,150,606
Fair Value
Due within one year	1,468,084
Due after one year through five years	3,214,595
Due after five years through ten years	1,157,450
Due after ten years	1,671,509
Total	$ 7,511,638
Weighted- Average Yield
Due within one year	1.48%
Due after one year through five years	2.24%
Due after five years through ten years	2.42%
Due after ten years	2.57%
Total	2.18%

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Farmer Mac Guaranteed Securities and USDA Securities - Schedule of Held-to-maturity Securities (Details) - Farmer Mac Guaranteed Securities and USDA Securities - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Amortized Cost
Due within one year	$ 482,593
Due after one year through five years	765,529
Due after five years through ten years	226,396
Due after ten years	2,137,116
Amortized Cost	3,611,634	$ 3,679,611
Fair Value
Due within one year	486,460
Due after one year through five years	790,138
Due after five years through ten years	234,799
Due after ten years	2,231,239
Total	$ 3,742,636	$ 3,749,184
Weighted- Average Yield
Due within one year	2.75%
Due after one year through five years	3.15%
Due after five years through ten years	2.96%
Due after ten years	3.25%
Total	3.11%

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Financial Derivatives - Schedule of Derivative Instruments in Statement of Financial Position (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended	9 Months Ended
	Mar. 31, 2020	Sep. 30, 2020	Dec. 31, 2019
Notional Disclosures [Abstract]
Notional Amount		$ 15,123,582	$ 14,022,179
Asset
Asset		12,837	10,519
Collateral (held)/pledged		(600)	(2,685)
Net amount		12,237	7,834
(Liability)
(Liability)		(37,357)	(27,042)
Collateral (held)/pledged		225,646
Financial derivatives		188,289	105,087
Designated as hedge | Fair value hedges: | Pay fixed non-callable
Notional Disclosures [Abstract]
Notional Amount		5,410,407	4,955,686
Asset
Asset		5,530	7,163
(Liability)
(Liability)		$ (4,106)	$ (3,281)
Weighted- Average Pay Rate		2.26%	2.47%
Weighted- Average Receive Rate		0.24%	1.93%
Weighted- Average Remaining Term (in years)	11 years 3 months 3 days	12 years 7 days
Designated as hedge | Fair value hedges: | Receive fixed non-callable
Notional Disclosures [Abstract]
Notional Amount		$ 2,435,729	$ 1,413,200
Asset
Asset		0	76
(Liability)
(Liability)		$ (11,532)	$ (5,329)
Weighted- Average Pay Rate		0.35%	1.88%
Weighted- Average Receive Rate		1.75%	2.13%
Weighted- Average Remaining Term (in years)	1 year 3 months	2 years 3 months 3 days
Designated as hedge | Fair value hedges: | Receive fixed callable
Notional Disclosures [Abstract]
Notional Amount		$ 343,500	$ 524,000
Asset
Asset		4,460	476
(Liability)
(Liability)		$ 0	$ (772)
Weighted- Average Pay Rate		0.18%	1.52%
Weighted- Average Receive Rate		1.78%	1.91%
Weighted- Average Remaining Term (in years)	2 years 9 months 29 days	3 years 4 months 28 days
Designated as hedge | Cash flow hedges: | Pay fixed non-callable
Notional Disclosures [Abstract]
Notional Amount		$ 482,000	$ 428,000
Asset
Asset		1,597	1,882
(Liability)
(Liability)		$ (10,739)	$ (1,514)
Weighted- Average Pay Rate		2.02%	2.36%
Weighted- Average Receive Rate		0.56%	2.12%
Weighted- Average Remaining Term (in years)	5 years 5 months 4 days	6 years 2 months 1 day
No hedge designation
Asset
Credit valuation adjustment		$ (2)	$ 0
(Liability)
Credit valuation adjustment		92	63
No hedge designation | Pay fixed non-callable
Notional Disclosures [Abstract]
Notional Amount		356,864	342,745
Asset
Asset		0	7
(Liability)
(Liability)		$ (10,879)	$ (14,046)
Weighted- Average Pay Rate		2.38%	3.55%
Weighted- Average Receive Rate		0.24%	2.00%
Weighted- Average Remaining Term (in years)	5 years 6 months 3 days	4 years 3 months 3 days
No hedge designation | Receive fixed non-callable
Notional Disclosures [Abstract]
Notional Amount		$ 2,622,182	$ 3,124,148
Asset
Asset		0	49
(Liability)
(Liability)		$ 0	$ (1,637)
Weighted- Average Pay Rate		0.16%	1.88%
Weighted- Average Receive Rate		0.98%	2.06%
Weighted- Average Remaining Term (in years)	1 year 7 months 28 days	8 months 23 days
No hedge designation | Receive fixed callable
Notional Disclosures [Abstract]
Notional Amount		$ 200,000	$ 525,000
Asset
Asset		1	79
(Liability)
(Liability)		$ (5)	$ (80)
Weighted- Average Pay Rate		0.07%	1.64%
Weighted- Average Receive Rate		0.08%	1.68%
Weighted- Average Remaining Term (in years)	9 months 29 days	11 months 19 days
No hedge designation | Basis swaps
Notional Disclosures [Abstract]
Notional Amount		$ 3,268,500	$ 2,670,000
Asset
Asset		1,242	787
(Liability)
(Liability)		$ (188)	$ (395)
Weighted- Average Pay Rate		0.22%	1.86%
Weighted- Average Receive Rate		0.25%	1.76%
Weighted- Average Remaining Term (in years)	10 months 24 days	1 year 3 months 14 days
No hedge designation | Treasury futures
Notional Disclosures [Abstract]
Notional Amount		$ 4,400	$ 39,400
Asset
Asset		9	0
(Liability)
(Liability)		$ 0	$ (51)
Weighted- Average Forward Price (in dollars per share)	$ 128.29	$ 139.73

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Financial Derivatives - Narrative (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019
Derivative [Line Items]
Gain expected to be reclassified from AOCI to earnings over next 12 months	$ 5,300,000		$ 5,300,000
Gain (loss) from interest rate swaps designated as cash flow hedges reclassified to earnings	0	$ 0	0	$ 0
Investments held as collateral	0		0		$ 0
Cash posted as collateral					132,129,000
Financial derivatives in net payable position	0		0		0
Notional amount	15,123,582,000		15,123,582,000		14,022,179,000
Exchange Cleared
Derivative [Line Items]
Notional amount	12,400,000,000		12,400,000,000		11,000,000,000.0
Interest Rate Swap
Derivative [Line Items]
Notional amount	15,100,000,000		15,100,000,000		14,000,000,000.0
Cash
Derivative [Line Items]
Cash held as collateral	600,000		600,000		2,700,000
Cash posted as collateral	13,600,000		13,600,000		500,000
Available-for-Sale Securities
Derivative [Line Items]
Cash posted as collateral	$ 212,100,000		$ 212,100,000		$ 131,700,000

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Financial Derivatives - Schedule of Net Income/(Expense) Recognized (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Derivative Instruments, Gain (Loss) [Line Items]
Interest Income Farmer Mac Guaranteed Securities and USDA Securities	$ 45,335	$ 81,649	$ 178,644	$ 252,629
Interest Income Loans	56,204	56,992	172,230	167,792
Total interest expense	(63,974)	(121,384)	(251,789)	(358,374)
(Losses)/gains on financial derivatives	(564)	(7,360)	(3,339)	1,193
Total	37,001	9,897	95,746	63,240
Noninterest Income	2,384	(3,295)	8,567	13,414
Fair value hedges:
Derivative Instruments, Gain (Loss) [Line Items]
Recognized on hedged items	(61,943)	116,623	323,019	316,799
(Losses)/gains on fair value hedging relationships	(5,047)	(4,490)	(13,109)	(8,617)
Cash flow hedges:
Derivative Instruments, Gain (Loss) [Line Items]
Discount amortization recognized on hedged items	(4)	(1)	(6)	(3)
Interest settlements reclassified from AOCI into net income on derivatives	(1,814)	317	(3,817)	1,260
Recognized on hedged items	(711)	(2,726)	(3,863)	(8,142)
Expense recognized on cash flow hedges	(2,529)	(2,410)	(7,686)	(6,885)
Designated as hedge | Fair value hedges:
Derivative Instruments, Gain (Loss) [Line Items]
Recognized on hedged items	30,076	27,978	85,495	72,233
Discount amortization recognized on hedged items	191	146	552	460
No hedge designation
Derivative Instruments, Gain (Loss) [Line Items]
(Losses)/gains on financial derivatives	(564)	(7,360)	(3,339)	1,193
Interest Income Farmer Mac Guaranteed Securities and USDA Securities | Fair value hedges:
Derivative Instruments, Gain (Loss) [Line Items]
Recognized on hedged items	(41,855)	84,164	257,575	258,155
(Losses)/gains on fair value hedging relationships	(3,492)	(3,331)	(7,222)	(4,731)
Interest Income Farmer Mac Guaranteed Securities and USDA Securities | Cash flow hedges:
Derivative Instruments, Gain (Loss) [Line Items]
Discount amortization recognized on hedged items	0	0	0	0
Interest settlements reclassified from AOCI into net income on derivatives	0	0	0	0
Recognized on hedged items	0	0	0	0
Expense recognized on cash flow hedges	0	0	0	0
Interest Income Farmer Mac Guaranteed Securities and USDA Securities | Designated as hedge | Fair value hedges:
Derivative Instruments, Gain (Loss) [Line Items]
Recognized on hedged items	31,439	31,435	95,366	86,628
Discount amortization recognized on hedged items	0	0	0	0
Interest Income Farmer Mac Guaranteed Securities and USDA Securities | No hedge designation
Derivative Instruments, Gain (Loss) [Line Items]
(Losses)/gains on financial derivatives	0	0	0	0
Interest Income Loans | Fair value hedges:
Derivative Instruments, Gain (Loss) [Line Items]
Recognized on hedged items	(29,372)	33,493	119,072	83,524
(Losses)/gains on fair value hedging relationships	(1,174)	(2,104)	(5,250)	(6,107)
Interest Income Loans | Cash flow hedges:
Derivative Instruments, Gain (Loss) [Line Items]
Discount amortization recognized on hedged items	0	0	0	0
Interest settlements reclassified from AOCI into net income on derivatives	0	0	0	0
Recognized on hedged items	0	0	0	0
Expense recognized on cash flow hedges	0	0	0	0
Interest Income Loans | Designated as hedge | Fair value hedges:
Derivative Instruments, Gain (Loss) [Line Items]
Recognized on hedged items	10,965	7,321	29,454	18,199
Discount amortization recognized on hedged items	0	0	0	0
Interest Income Loans | No hedge designation
Derivative Instruments, Gain (Loss) [Line Items]
(Losses)/gains on financial derivatives	0	0	0	0
Total Interest Expense | Fair value hedges:
Derivative Instruments, Gain (Loss) [Line Items]
Recognized on hedged items	9,284	(1,034)	(53,628)	(24,880)
(Losses)/gains on fair value hedging relationships	(381)	945	(637)	2,221
Total Interest Expense | Cash flow hedges:
Derivative Instruments, Gain (Loss) [Line Items]
Discount amortization recognized on hedged items	(4)	(1)	(6)	(3)
Interest settlements reclassified from AOCI into net income on derivatives	(1,814)	317	(3,817)	1,260
Recognized on hedged items	(711)	(2,726)	(3,863)	(8,142)
Expense recognized on cash flow hedges	(2,529)	(2,410)	(7,686)	(6,885)
Total Interest Expense | Designated as hedge | Fair value hedges:
Derivative Instruments, Gain (Loss) [Line Items]
Recognized on hedged items	(12,328)	(10,778)	(39,325)	(32,594)
Discount amortization recognized on hedged items	191	146	552	460
Total Interest Expense | No hedge designation
Derivative Instruments, Gain (Loss) [Line Items]
(Losses)/gains on financial derivatives	0	0	0	0
Losses on financial derivatives | Fair value hedges:
Derivative Instruments, Gain (Loss) [Line Items]
Recognized on hedged items	0	0	0	0
(Losses)/gains on fair value hedging relationships	0	0	0	0
Losses on financial derivatives | Cash flow hedges:
Derivative Instruments, Gain (Loss) [Line Items]
Discount amortization recognized on hedged items	0	0	0	0
Interest settlements reclassified from AOCI into net income on derivatives	0	0	0	0
Recognized on hedged items	0	0	0	0
Expense recognized on cash flow hedges	0	0	0	0
Losses on financial derivatives | Designated as hedge | Fair value hedges:
Derivative Instruments, Gain (Loss) [Line Items]
Recognized on hedged items	0	0	0	0
Discount amortization recognized on hedged items	0	0	0	0
Losses on financial derivatives | No hedge designation
Derivative Instruments, Gain (Loss) [Line Items]
(Losses)/gains on financial derivatives	(564)	(7,360)	(3,339)	1,193
Interest Rate Swap | Fair value hedges:
Derivative Instruments, Gain (Loss) [Line Items]
Recognized on derivatives	(16,962)	(2,596)	(34,717)	(5,894)
Income/(expense) related to interest settlements on fair value hedging relationships	12,923	25,236	50,226	65,879
Recognized on derivatives	56,896	(121,113)	(336,128)	(325,416)
Interest Rate Swap | No hedge designation
Derivative Instruments, Gain (Loss) [Line Items]
Total interest expense				(3,321)
(Losses)/gains on financial derivatives	(4,292)	(7,402)	(2,415)	5,920
Noninterest Income	3,800	127	1,143
Interest Rate Swap | Interest Income Farmer Mac Guaranteed Securities and USDA Securities | Fair value hedges:
Derivative Instruments, Gain (Loss) [Line Items]
Recognized on derivatives	(20,373)	(1,051)	(38,781)	1,665
Income/(expense) related to interest settlements on fair value hedging relationships	11,066	30,384	56,585	88,293
Recognized on derivatives	38,363	(87,495)	(264,797)	(262,886)
Interest Rate Swap | Interest Income Farmer Mac Guaranteed Securities and USDA Securities | No hedge designation
Derivative Instruments, Gain (Loss) [Line Items]
Total interest expense				0
(Losses)/gains on financial derivatives	0	0	0	0
Noninterest Income	0	0	0
Interest Rate Swap | Interest Income Loans | Fair value hedges:
Derivative Instruments, Gain (Loss) [Line Items]
Recognized on derivatives	(6,194)	(584)	(12,607)	(808)
Income/(expense) related to interest settlements on fair value hedging relationships	4,771	6,737	16,847	17,391
Recognized on derivatives	28,198	(35,597)	(124,322)	(89,631)
Interest Rate Swap | Interest Income Loans | No hedge designation
Derivative Instruments, Gain (Loss) [Line Items]
Total interest expense				0
(Losses)/gains on financial derivatives	0	0	0	0
Noninterest Income	0	0	0
Interest Rate Swap | Total Interest Expense | Fair value hedges:
Derivative Instruments, Gain (Loss) [Line Items]
Recognized on derivatives	9,605	(961)	16,671	(6,751)
Income/(expense) related to interest settlements on fair value hedging relationships	(2,914)	(11,885)	(23,206)	(39,805)
Recognized on derivatives	(9,665)	1,979	52,991	27,101
Interest Rate Swap | Total Interest Expense | No hedge designation
Derivative Instruments, Gain (Loss) [Line Items]
Total interest expense				0
(Losses)/gains on financial derivatives	0	0	0	0
Noninterest Income	0	0	0
Interest Rate Swap | Losses on financial derivatives | Fair value hedges:
Derivative Instruments, Gain (Loss) [Line Items]
Recognized on derivatives	0	0	0	0
Income/(expense) related to interest settlements on fair value hedging relationships	0	0	0	0
Recognized on derivatives	0	0	0	0
Interest Rate Swap | Losses on financial derivatives | No hedge designation
Derivative Instruments, Gain (Loss) [Line Items]
Total interest expense				(3,321)
(Losses)/gains on financial derivatives	(4,292)	(7,402)	(2,415)	5,920
Noninterest Income	3,800	127	1,143
Treasury futures | No hedge designation
Derivative Instruments, Gain (Loss) [Line Items]
(Losses)/gains on financial derivatives	(72)	(85)	(2,067)	(1,406)
Treasury futures | Interest Income Farmer Mac Guaranteed Securities and USDA Securities | No hedge designation
Derivative Instruments, Gain (Loss) [Line Items]
(Losses)/gains on financial derivatives	0	0	0	0
Treasury futures | Interest Income Loans | No hedge designation
Derivative Instruments, Gain (Loss) [Line Items]
(Losses)/gains on financial derivatives	0	0	0	0
Treasury futures | Total Interest Expense | No hedge designation
Derivative Instruments, Gain (Loss) [Line Items]
(Losses)/gains on financial derivatives	0	0	0	0
Treasury futures | Losses on financial derivatives | No hedge designation
Derivative Instruments, Gain (Loss) [Line Items]
(Losses)/gains on financial derivatives	$ (72)	$ (85)	$ (2,067)	$ (1,406)

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Financial Derivatives - Hedged Items in Fair Value Hedging Relationships (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Loans
HedgedItemsinFairValueHedgingRelationship [Line Items]
Carrying Amount of Hedged Assets/(Liabilities)	$ 1,628,241	$ 1,050,335
Hedged Asset	156,979	37,907
Loans | No hedge designation
HedgedItemsinFairValueHedgingRelationship [Line Items]
Hedged Asset	1,400
Long-term Debt
HedgedItemsinFairValueHedgingRelationship [Line Items]
Carrying Amount of Hedged Assets/(Liabilities)	(2,838,690)	(2,761,052)
Hedged Liability	(61,149)	(7,433)
Prepaid Expenses and Other Assets | Designated as hedge
HedgedItemsinFairValueHedgingRelationship [Line Items]
Carrying Amount of Hedged Assets/(Liabilities)	200
Farmer Mac Guaranteed Securities
HedgedItemsinFairValueHedgingRelationship [Line Items]
Carrying Amount of Hedged Assets/(Liabilities)	4,277,240	4,092,611
Hedged Asset	437,777	$ 180,215
Farmer Mac Guaranteed Securities | No hedge designation
HedgedItemsinFairValueHedgingRelationship [Line Items]
Hedged Asset	$ 1,600

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Financial Derivatives - Schedule of Credit Exposure to Interest Rate Swap Counterparties (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Derivative [Line Items]
Liabilities derivatives interest rate swaps	$ 37,357	$ 27,042
Gross Amount Recognized | Interest Rate Swap
Derivative [Line Items]
Assets derivatives interest rate swaps	114,788	56,139
Liabilities derivatives interest rate swaps	718,812	305,584
Counterparty Netting | Interest Rate Swap
Derivative [Line Items]
Assets derivatives interest rate swaps	114,165	53,771
Liabilities derivatives interest rate swaps	714,470	291,326
Net Amount Presented in the Consolidated Balance Sheet | Interest Rate Swap
Derivative [Line Items]
Assets derivatives interest rate swaps	623	2,368
Liabilities derivatives interest rate swaps	$ 4,342	$ 14,258

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Loans - Additional Information (Details) - USD ($)	3 Months Ended	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019
Receivables [Abstract]
Purchases of loans held for sale	$ 59,200,000	$ 59,150,000	$ 0
Proceeds from the sale of loans held for sale	15,000,000.0	15,000,000	0
Held for sale loans reclassified to loans held for investment	24,200,000	24,150,000	$ 0
Loans held for sale, at lower of cost or fair value	$ 20,000,000	$ 20,000,000		$ 0

XML

Loans - Schedule of Composition of Loan Balances (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Jun. 30, 2020	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Dec. 31, 2018
Accounts, Notes, Loans and Financing Receivable [Line Items]
Unpaid principal balance	$ 7,966,679
Total	6,825,061		$ 5,390,977
Allowance for losses	(15,821)		(10,454)
Total loans, net of allowance	8,105,647		6,981,440
Real Estate Loan
Accounts, Notes, Loans and Financing Receivable [Line Items]
Unpaid principal balance	7,966,679		6,947,850
Unamortized premiums, discounts, fair value hedge basis adjustment, and other cost basis adjustments	154,789		44,044
Total	8,121,468		6,991,894
Allowance for losses	(15,821)		(10,454)
Total loans, net of allowance	8,105,647		6,981,440
Farm & Ranch
Accounts, Notes, Loans and Financing Receivable [Line Items]
Unpaid principal balance	5,857,324
Total	5,857,324
Allowance for losses	(5,739)	$ (6,039)	(10,454)	$ (8,024)	$ (7,264)	$ (7,017)
Farm & Ranch | Real Estate Loan
Accounts, Notes, Loans and Financing Receivable [Line Items]
Unpaid principal balance	5,857,324		5,276,557
Rural  Utilities
Accounts, Notes, Loans and Financing Receivable [Line Items]
Unpaid principal balance	2,109,355
Total	2,109,355
Allowance for losses	(10,082)	$ (8,900)	0	$ 0	$ 0	$ 0
Rural  Utilities | Real Estate Loan
Accounts, Notes, Loans and Financing Receivable [Line Items]
Unpaid principal balance	2,109,355		1,671,293
Unsecuritized
Accounts, Notes, Loans and Financing Receivable [Line Items]
Unpaid principal balance	6,690,272		5,346,933
Unamortized premiums, discounts, fair value hedge basis adjustment, and other cost basis adjustments	154,789		44,044
Total	6,845,061		5,390,977
Allowance for losses	(14,878)		(8,853)
Total loans, net of allowance	6,830,183		5,382,124
Unsecuritized | Farm & Ranch
Accounts, Notes, Loans and Financing Receivable [Line Items]
Unpaid principal balance	4,580,917		3,675,640
Unsecuritized | Rural  Utilities
Accounts, Notes, Loans and Financing Receivable [Line Items]
Unpaid principal balance	2,109,355		1,671,293
In Consolidated Trusts
Accounts, Notes, Loans and Financing Receivable [Line Items]
Unpaid principal balance	1,276,407		1,600,917
Unamortized premiums, discounts, fair value hedge basis adjustment, and other cost basis adjustments	0		0
Total	1,276,407		1,600,917
Allowance for losses	(943)		(1,601)
Total loans, net of allowance	1,275,464		1,599,316
In Consolidated Trusts | Farm & Ranch
Accounts, Notes, Loans and Financing Receivable [Line Items]
Unpaid principal balance	1,276,407		1,600,917
In Consolidated Trusts | Rural  Utilities
Accounts, Notes, Loans and Financing Receivable [Line Items]
Unpaid principal balance	$ 0		$ 0

XML

Loans - Changes in the Allowance for Losses (Details) - USD ($)	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Beginning balance			$ 10,454,000
(Release of)/provision for losses	$ 653,000	$ 760,000	4,542,000	$ 1,074,000
Ending balance	15,821,000		$ 15,821,000		$ 10,454,000
Accounting Standards Update [Extensible List]			us-gaap:AccountingStandardsUpdate201613Member		us-gaap:AccountingStandardsUpdate201613Member
Farm & Ranch
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Beginning balance	6,039,000	7,264,000	$ 10,454,000	7,017,000	$ 7,017,000
(Release of)/provision for losses	(300,000)	760,000	(412,000)	1,074,000
Charge-offs	0	0	(394,000)	(67,000)
Ending balance	5,739,000	8,024,000	$ 5,739,000	8,024,000	10,454,000
Accounting Standards Update [Extensible List]			us-gaap:AccountingStandardsUpdate201613Member
Farm & Ranch | Commercial Real Estate
Financing Receivable, Allowance for Credit Losses [Roll Forward]
(Release of)/provision for losses			$ 1,800,000
Farm & Ranch | Cumulative Effect, Period of Adoption, Adjustment
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Beginning balance	0	0	(3,909,000)	0	0
Ending balance					(3,909,000)
Farm & Ranch | Cumulative Effect, Period of Adoption, Adjusted Balance
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Beginning balance	6,039,000	7,264,000	6,545,000	7,017,000	7,017,000
Ending balance					6,545,000
Rural  Utilities
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Beginning balance	8,900,000	0	0	0	0
(Release of)/provision for losses	1,182,000	0	4,704,000	0
Charge-offs	0	0	0	0
Ending balance	10,082,000	0	$ 10,082,000	0	0
Accounting Standards Update [Extensible List]			us-gaap:AccountingStandardsUpdate201613Member
Rural  Utilities | Collateral Pledged
Financing Receivable, Allowance for Credit Losses [Roll Forward]
(Release of)/provision for losses			$ 0
Rural  Utilities | Cumulative Effect, Period of Adoption, Adjustment
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Beginning balance	0	0	5,378,000	0	0
Ending balance					5,378,000
Rural  Utilities | Cumulative Effect, Period of Adoption, Adjusted Balance
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Beginning balance	$ 8,900,000	$ 0	$ 5,378,000	$ 0	0
Ending balance					$ 5,378,000

XML

Loans - Allowance for Losses Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Jun. 30, 2020	Jan. 01, 2020	Dec. 31, 2019	Jun. 30, 2019	Dec. 31, 2018
Financing Receivable, Allowance for Credit Losses [Line Items]
Loans	$ 15,821		$ 15,821				$ 10,454
(Release of)/provision for losses	653	$ 760	4,542	$ 1,074
Current period charge-offs			100
Cumulative Effect, Period of Adoption, Adjustment
Financing Receivable, Allowance for Credit Losses [Line Items]
Loans						$ 2,656
Farm & Ranch
Financing Receivable, Allowance for Credit Losses [Line Items]
Loans	5,739	8,024	5,739	8,024	$ 6,039		10,454	$ 7,264	$ 7,017
(Release of)/provision for losses	(300)	760	(412)	1,074
Current period charge-offs	0		394
Farm & Ranch | Cumulative Effect, Period of Adoption, Adjustment
Financing Receivable, Allowance for Credit Losses [Line Items]
Loans					0	(3,909)	(3,909)	0	0
Rural  Utilities
Financing Receivable, Allowance for Credit Losses [Line Items]
Loans	10,082	0	10,082	0	8,900		0	0	0
(Release of)/provision for losses	1,182	$ 0	4,704	$ 0
Current period charge-offs	0		0
Rural  Utilities | Cumulative Effect, Period of Adoption, Adjustment
Financing Receivable, Allowance for Credit Losses [Line Items]
Loans					$ 0	$ 5,378	$ 5,378	$ 0	$ 0
Farm & Ranch and Rural Utilities
Financing Receivable, Allowance for Credit Losses [Line Items]
(Release of)/provision for losses	$ 900		$ 4,300

XML

Loans - Unpaid Principal Balances by Delinquency Status (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2020	Dec. 31, 2019
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing receivable, not past due	$ 7,826,189	$ 7,826,189
Financing receivables, past due	11,051	11,051	$ 57,700
Nonaccrual loans	129,439	129,439	87,781
Total Loans	7,966,679	7,966,679
Nonaccrual loans with no associated allowance	24,800	24,800
Interest received on nonaccrual loans	1,200	3,500
Farm & Ranch
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing receivable, not past due	5,716,834	5,716,834
Financing receivables, past due	11,051	11,051
Nonaccrual loans	129,439	129,439
Total Loans	5,857,324	5,857,324
Rural  Utilities
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing receivable, not past due	2,109,355	2,109,355
Financing receivables, past due	0	0
Nonaccrual loans	0	0
Total Loans	2,109,355	2,109,355
30-59 Days
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing receivables, past due	3,513	3,513
30-59 Days | Farm & Ranch
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing receivables, past due	3,513	3,513
30-59 Days | Rural  Utilities
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing receivables, past due	0	0
60-89 Days
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing receivables, past due	637	637
60-89 Days | Farm & Ranch
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing receivables, past due	637	637
60-89 Days | Rural  Utilities
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing receivables, past due	0	0
90 Days and Greater
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing receivables, past due	6,901	6,901
90 Days and Greater | Farm & Ranch
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing receivables, past due	6,901	6,901	$ 57,719
90 Days and Greater | Farm & Ranch | Payment Deferral, CARES Act
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing receivables, past due	105,300	105,300
90 Days and Greater | Rural  Utilities
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing receivables, past due	$ 0	$ 0

XML

Loans - Schedule of Allowance for Losses by Impairment Method and Commodity (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Ending Balance:
Total	$ 6,825,061	$ 5,390,977
Allowance for Losses:
Total	$ 15,821	10,454
On-Balance Sheet:
Ending Balance:
Collectively evaluated for impairment:		5,069,480
Individually evaluated for impairment:		207,077
Total		5,276,557
Allowance for Losses:
Collectively evaluated for impairment:		4,256
Individually evaluated for impairment:		6,198
Total		10,454
On-Balance Sheet: | Crops
Ending Balance:
Collectively evaluated for impairment:		2,664,362
Individually evaluated for impairment:		108,815
Total		2,773,177
Allowance for Losses:
Collectively evaluated for impairment:		1,880
Individually evaluated for impairment:		2,628
Total		4,508
On-Balance Sheet: | Permanent Plantings
Ending Balance:
Collectively evaluated for impairment:		1,161,900
Individually evaluated for impairment:		51,256
Total		1,213,156
Allowance for Losses:
Collectively evaluated for impairment:		1,362
Individually evaluated for impairment:		1,008
Total		2,370
On-Balance Sheet: | Livestock
Ending Balance:
Collectively evaluated for impairment:		871,341
Individually evaluated for impairment:		39,962
Total		911,303
Allowance for Losses:
Collectively evaluated for impairment:		714
Individually evaluated for impairment:		2,447
Total		3,161
On-Balance Sheet: | Part-time Farm
Ending Balance:
Collectively evaluated for impairment:		356,920
Individually evaluated for impairment:		7,044
Total		363,964
Allowance for Losses:
Collectively evaluated for impairment:		249
Individually evaluated for impairment:		115
Total		364
On-Balance Sheet: | Ag. Storage and Processing
Ending Balance:
Collectively evaluated for impairment:		10,360
Individually evaluated for impairment:		0
Total		10,360
Allowance for Losses:
Collectively evaluated for impairment:		47
Individually evaluated for impairment:		0
Total		47
On-Balance Sheet: | Other
Ending Balance:
Collectively evaluated for impairment:		4,597
Individually evaluated for impairment:		0
Total		4,597
Allowance for Losses:
Collectively evaluated for impairment:		4
Individually evaluated for impairment:		0
Total		$ 4

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Loans - Schedule of Impaired Financing Receivables (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2019	Sep. 30, 2020	Dec. 31, 2019
Financing Receivable, Impaired [Line Items]
Impaired loans, with no specific allowance, recorded investment				$ 52,191
Impaired loans, with no specific allowance, unpaid principal balance				52,014
Impaired loan, with a specific allowance, recorded investment				174,385
Impaired loans, with a specific allowance, unpaid principal balance				173,844
Impaired loans, associated allowance				6,541
Recorded investment				226,576
Unpaid principal balance				225,858
Recorded investment of loans on nonaccrual status			$ 129,439	87,781
Average recorded investment in impaired loans	$ 196,914	$ 173,943
Income recognized on impaired loans	536	2,196
Less than 90 days past due
Financing Receivable, Impaired [Line Items]
Recorded investment of loans on nonaccrual status				30,100
Crops
Financing Receivable, Impaired [Line Items]
Impaired loans, with no specific allowance, recorded investment				30,846
Impaired loans, with no specific allowance, unpaid principal balance				30,741
Impaired loan, with a specific allowance, recorded investment				84,044
Impaired loans, with a specific allowance, unpaid principal balance				83,772
Impaired loans, associated allowance				2,725
Recorded investment				114,890
Unpaid principal balance				114,513
Recorded investment of loans on nonaccrual status				34,037
Average recorded investment in impaired loans	106,535	93,088
Income recognized on impaired loans	178	879
Permanent Plantings
Financing Receivable, Impaired [Line Items]
Impaired loans, with no specific allowance, recorded investment				16,696
Impaired loans, with no specific allowance, unpaid principal balance				16,638
Impaired loan, with a specific allowance, recorded investment				36,852
Impaired loans, with a specific allowance, unpaid principal balance				36,732
Impaired loans, associated allowance				1,051
Recorded investment				53,548
Unpaid principal balance				53,370
Recorded investment of loans on nonaccrual status				22,849
Average recorded investment in impaired loans	45,197	41,524
Income recognized on impaired loans	166	586
Livestock
Financing Receivable, Impaired [Line Items]
Impaired loans, with no specific allowance, recorded investment				3,195
Impaired loans, with no specific allowance, unpaid principal balance				3,185
Impaired loan, with a specific allowance, recorded investment				47,113
Impaired loans, with a specific allowance, unpaid principal balance				46,984
Impaired loans, associated allowance				2,636
Recorded investment				50,308
Unpaid principal balance				50,169
Recorded investment of loans on nonaccrual status				28,441
Average recorded investment in impaired loans	36,859	31,189
Income recognized on impaired loans	87	504
Part-time Farm
Financing Receivable, Impaired [Line Items]
Impaired loans, with no specific allowance, recorded investment				1,398
Impaired loans, with no specific allowance, unpaid principal balance				1,394
Impaired loan, with a specific allowance, recorded investment				6,376
Impaired loans, with a specific allowance, unpaid principal balance				6,356
Impaired loans, associated allowance				129
Recorded investment				7,774
Unpaid principal balance				7,750
Recorded investment of loans on nonaccrual status				2,454
Average recorded investment in impaired loans	8,265	8,079
Income recognized on impaired loans	105	227
Ag. Storage and Processing
Financing Receivable, Impaired [Line Items]
Impaired loans, with no specific allowance, recorded investment				0
Impaired loans, with no specific allowance, unpaid principal balance				0
Impaired loan, with a specific allowance, recorded investment				0
Impaired loans, with a specific allowance, unpaid principal balance				0
Impaired loans, associated allowance				0
Recorded investment				0
Unpaid principal balance				0
Recorded investment of loans on nonaccrual status				0
Average recorded investment in impaired loans	0	0
Income recognized on impaired loans	0	0
Other
Financing Receivable, Impaired [Line Items]
Impaired loans, with no specific allowance, recorded investment				56
Impaired loans, with no specific allowance, unpaid principal balance				56
Impaired loan, with a specific allowance, recorded investment				0
Impaired loans, with a specific allowance, unpaid principal balance				0
Impaired loans, associated allowance				0
Recorded investment				56
Unpaid principal balance				56
Recorded investment of loans on nonaccrual status				0
Average recorded investment in impaired loans	58	63
Income recognized on impaired loans	$ 0	$ 0
Collateral Dependent Not Individually Analyzed
Financing Receivable, Impaired [Line Items]
Impaired loans, associated allowance				3,000
Recorded investment				$ 159,100
Impaired loans, impairment analysis performed percent				70.00%

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Loans - Schedule of Past Due Financing Receivables (Details) - USD ($)	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2020	Dec. 31, 2019
Financing Receivable, Recorded Investment, Past Due [Line Items]
90-Days Delinquencies		$ 11,051,000	$ 57,700,000
Loans subject to removal-of-account provisions			0
90 Days and Greater
Financing Receivable, Recorded Investment, Past Due [Line Items]
90-Days Delinquencies		6,901,000
Farm & Ranch
Financing Receivable, Recorded Investment, Past Due [Line Items]
90-Days Delinquencies		11,051,000
Farm & Ranch | 90 Days and Greater
Financing Receivable, Recorded Investment, Past Due [Line Items]
90-Days Delinquencies		$ 6,901,000	57,719,000
Net Credit Losses	$ 131,000
On-Balance Sheet: | Farm & Ranch
Financing Receivable, Recorded Investment, Past Due [Line Items]
90-Days Delinquencies			$ 57,719,000

XML

Loans - Schedule of Financing Receivables Credit Quality Indicators (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019
2020
Current period recoveries	$ 0		$ 0
2019
Current period recoveries	0		0
2017
Current period recoveries	0		0
2016
Current period recoveries	0		0
Prior
Current period recoveries	0		0
Revolving Loans - Amortized Cost Basis
Current period recoveries	0		0
Total
Total	6,825,061		6,825,061		$ 5,390,977
Current period charge-offs			100
90-Days Delinquencies	11,051		11,051		57,700
On-Balance Sheet:
Total
Total					5,276,557
On-Balance Sheet: | Crops
Total
Total					2,773,177
On-Balance Sheet: | Permanent Plantings
Total
Total					1,213,156
On-Balance Sheet: | Livestock
Total
Total					911,303
On-Balance Sheet: | Part-time Farm
Total
Total					363,964
On-Balance Sheet: | Ag. Storage and Processing
Total
Total					10,360
On-Balance Sheet: | Other
Total
Total					4,597
Farm & Ranch
2020
Total	1,470,275		1,470,275
Current period charge-offs	0		0
Current period recoveries	0		0
Current period net charge-offs	0		0
2019
Total	895,361		895,361
Current period charge-offs	0		0
Current period recoveries	0		0
Current period net charge-offs	0		0
2018
Total	554,657		554,657
Current period charge-offs	0		0
Current period recoveries	0		0
Current period net charge-offs	0		0
2017
Total	619,269		619,269
Current period charge-offs	0		0
Current period recoveries	0		0
Current period net charge-offs	0		0
2016
Total	547,029		547,029
Current period charge-offs	0		0
Current period recoveries	0		0
Current period net charge-offs	0		0
Prior
Total	1,239,199		1,239,199
Current period charge-offs	0		394
Current period recoveries	0		0
Current period net charge-offs	0		394
Revolving Loans - Amortized Cost Basis
Total	531,534		531,534
Current period charge-offs	0		0
Current period recoveries	0		0
Current period net charge-offs	0		0
Total
Total	5,857,324		5,857,324
Current period charge-offs	0		394
Current period recoveries	0		0
Current period net charge-offs	0	$ 0	394	$ 67
90-Days Delinquencies	11,051		11,051
Farm & Ranch | On-Balance Sheet:
Total
Total					5,276,557
90-Days Delinquencies					57,719
Farm & Ranch | On-Balance Sheet: | Crops
Total
Total					2,773,177
90-Days Delinquencies					21,167
Farm & Ranch | On-Balance Sheet: | Permanent Plantings
Total
Total					1,213,156
90-Days Delinquencies					15,828
Farm & Ranch | On-Balance Sheet: | Livestock
Total
Total					911,303
90-Days Delinquencies					19,354
Farm & Ranch | On-Balance Sheet: | Part-time Farm
Total
Total					363,964
90-Days Delinquencies					1,370
Farm & Ranch | On-Balance Sheet: | Ag. Storage and Processing
Total
Total					10,360
90-Days Delinquencies					0
Farm & Ranch | On-Balance Sheet: | Other
Total
Total					4,597
90-Days Delinquencies					0
Rural  Utilities
2020
Total	502,873		502,873
Current period charge-offs	0		0
Current period net charge-offs	0		0
2019
Total	819,099		819,099
Current period charge-offs	0		0
Current period net charge-offs	0		0
2018
Total	8,260		8,260
Current period charge-offs	0		0
Current period recoveries	0		0
Current period net charge-offs	0		0
2017
Total	92,223		92,223
Current period charge-offs	0		0
Current period net charge-offs	0		0
2016
Total	31,275		31,275
Current period charge-offs	0		0
Current period net charge-offs	0		0
Prior
Total	642,755		642,755
Current period charge-offs	0		0
Current period net charge-offs	0		0
Revolving Loans - Amortized Cost Basis
Total	12,870		12,870
Current period charge-offs	0		0
Current period net charge-offs	0		0
Total
Total	2,109,355		2,109,355
Current period charge-offs	0		0
Current period recoveries	0		0
Current period net charge-offs	0	$ 0	0	$ 0
90-Days Delinquencies	0		0
Acceptable | Farm & Ranch
2020
Total	1,423,112		1,423,112
2019
Total	765,367		765,367
2018
Total	507,218		507,218
2017
Total	557,095		557,095
2016
Total	499,642		499,642
Prior
Total	1,157,633		1,157,633
Revolving Loans - Amortized Cost Basis
Total	472,209		472,209
Total
Total	5,382,276		5,382,276
Acceptable | Farm & Ranch | On-Balance Sheet:
Total
Total					4,790,636
Acceptable | Farm & Ranch | On-Balance Sheet: | Crops
Total
Total					2,556,956
Acceptable | Farm & Ranch | On-Balance Sheet: | Permanent Plantings
Total
Total					1,050,160
Acceptable | Farm & Ranch | On-Balance Sheet: | Livestock
Total
Total					825,234
Acceptable | Farm & Ranch | On-Balance Sheet: | Part-time Farm
Total
Total					343,329
Acceptable | Farm & Ranch | On-Balance Sheet: | Ag. Storage and Processing
Total
Total					10,360
Acceptable | Farm & Ranch | On-Balance Sheet: | Other
Total
Total					4,597
Acceptable | Rural  Utilities
2020
Total	502,873		502,873
2019
Total	819,099		819,099
2018
Total	8,260		8,260
2017
Total	92,223		92,223
2016
Total	31,275		31,275
Prior
Total	638,281		638,281
Revolving Loans - Amortized Cost Basis
Total	12,870		12,870
Total
Total	2,104,881		2,104,881
Special mention | Farm & Ranch
2020
Total	39,607		39,607
2019
Total	124,068		124,068
2018
Total	27,757		27,757
2017
Total	4,633		4,633
2016
Total	10,897		10,897
Prior
Total	22,236		22,236
Revolving Loans - Amortized Cost Basis
Total	50,395		50,395
Total
Total	279,593		279,593
Special mention | Farm & Ranch | On-Balance Sheet:
Total
Total					278,843
Special mention | Farm & Ranch | On-Balance Sheet: | Crops
Total
Total					107,406
Special mention | Farm & Ranch | On-Balance Sheet: | Permanent Plantings
Total
Total					111,739
Special mention | Farm & Ranch | On-Balance Sheet: | Livestock
Total
Total					46,107
Special mention | Farm & Ranch | On-Balance Sheet: | Part-time Farm
Total
Total					13,591
Special mention | Farm & Ranch | On-Balance Sheet: | Ag. Storage and Processing
Total
Total					0
Special mention | Farm & Ranch | On-Balance Sheet: | Other
Total
Total					0
Special mention | Rural  Utilities
2020
Total	0		0
2019
Total	0		0
2018
Total	0		0
2017
Total	0		0
2016
Total	0		0
Prior
Total	0		0
Revolving Loans - Amortized Cost Basis
Total	0		0
Total
Total	0		0
Substandard | Farm & Ranch
2020
Total	7,556		7,556
2019
Total	5,926		5,926
2018
Total	19,682		19,682
2017
Total	57,541		57,541
2016
Total	36,490		36,490
Prior
Total	59,330		59,330
Revolving Loans - Amortized Cost Basis
Total	8,930		8,930
Total
Total	195,455		195,455
Substandard | Farm & Ranch | On-Balance Sheet:
Total
Total					207,078
Substandard | Farm & Ranch | On-Balance Sheet: | Crops
Total
Total					108,815
Substandard | Farm & Ranch | On-Balance Sheet: | Permanent Plantings
Total
Total					51,257
Substandard | Farm & Ranch | On-Balance Sheet: | Livestock
Total
Total					39,962
Substandard | Farm & Ranch | On-Balance Sheet: | Part-time Farm
Total
Total					7,044
Substandard | Farm & Ranch | On-Balance Sheet: | Ag. Storage and Processing
Total
Total					0
Substandard | Farm & Ranch | On-Balance Sheet: | Other
Total
Total					$ 0
Substandard | Rural  Utilities
2020
Total	0		0
2019
Total	0		0
2018
Total	0		0
2017
Total	0		0
2016
Total	0		0
Prior
Total	4,474		4,474
Revolving Loans - Amortized Cost Basis
Total	0		0
Total
Total	$ 4,474		$ 4,474

XML

Guarantees - Off-Balance Sheet Guaranteed Securities (Details) - Variable Interest Entity, Not Primary Beneficiary - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Guarantor Obligations [Line Items]
Total off-balance sheet Farmer Mac Guaranteed Securities	$ 402,517	$ 504,105
Farm & Ranch
Guarantor Obligations [Line Items]
Total off-balance sheet Farmer Mac Guaranteed Securities	85,767	107,322
USDA Guarantees
Guarantor Obligations [Line Items]
Total off-balance sheet Farmer Mac Guaranteed Securities	310,682	389,216
AgVantage Securities
Guarantor Obligations [Line Items]
Total off-balance sheet Farmer Mac Guaranteed Securities	$ 6,068	$ 7,567

XML

Guarantees - Significant Cash Flows Received From and Paid to Trusts (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Commitments and Contingencies Disclosure [Abstract]
Proceeds from sale of Farmer Mac Guaranteed Securities	$ 64,612	$ 199,396
Guarantee fees received	$ 1,136	$ 1,122

XML

Guarantees - Schedule of Underlying Off-Balance Sheet Guaranteed Securities (Details) - Farmer Mac Guaranteed Securities - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Mar. 31, 2020	Sep. 30, 2020	Dec. 31, 2019
Guarantor Obligations [Line Items]
Guarantee and commitment obligation		$ 1,780	$ 2,230
Weighted-average remaining maturity	9 years 9 months 18 days	9 years 6 months
AgVantage Securities
Guarantor Obligations [Line Items]
Weighted-average remaining maturity	5 years	4 years 2 months 12 days

XML

Guarantees - Schedule of Long-Term Standby Purchase Commitments (Details) - LTSPCs - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Mar. 31, 2020	Sep. 30, 2020	Dec. 31, 2019
Guarantor Obligations [Line Items]
Maximum principal amount		$ 2,882,212	$ 3,002,349
Weighted-average remaining maturity	15 years 2 months 12 days	15 years 1 month 6 days
Guarantee and commitment obligation
Guarantor Obligations [Line Items]
Guarantee and commitment obligation		$ 33,360	$ 34,470

XML

Guarantees - Reserve For Losses (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019	Jun. 30, 2020	Jan. 01, 2020	Jun. 30, 2019	Jan. 01, 2019	Dec. 31, 2018
Guarantor Obligations [Line Items]
Reserve for losses	$ 3,568		$ 3,568		$ 2,164
Provision for/(release of) losses	547	$ (137)	$ 540	$ (424)
Accounting Standards Update [Extensible List]			us-gaap:AccountingStandardsUpdate201613Member		us-gaap:AccountingStandardsUpdate201613Member
Farm & Ranch
Guarantor Obligations [Line Items]
Reserve for losses	2,278	1,743	$ 2,278	1,743	$ 2,164	$ 1,650	$ 2,016	$ 1,880	$ 2,167	$ 2,167
Provision for/(release of) losses	628	(137)	$ 262	(424)
Accounting Standards Update [Extensible List]			us-gaap:AccountingStandardsUpdate201613Member
Rural  Utilities
Guarantor Obligations [Line Items]
Reserve for losses	1,290	0	$ 1,290	0	0	$ 1,370	$ 1,011	$ 0	$ 0	$ 0
Provision for/(release of) losses	(80)	$ 0	$ 279	$ 0
Accounting Standards Update [Extensible List]			us-gaap:AccountingStandardsUpdate201613Member
LTSPCs and Farmer Mac Guaranteed Securities | Farm & Ranch
Guarantor Obligations [Line Items]
Reserve for losses	2,278		$ 2,278		2,164
LTSPCs | Rural  Utilities
Guarantor Obligations [Line Items]
Reserve for losses	$ 1,290		$ 1,290		$ 0

XML

Guarantees - Changes in Reserve for Losses (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Beginning balance			$ 2,164
Provision for/(release of) losses	$ 547	$ (137)	540	$ (424)
Ending balance	3,568		3,568
Farm & Ranch
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Beginning balance	1,650	1,880	2,164	2,167
Provision for/(release of) losses	628	(137)	262	(424)
Ending balance	2,278	1,743	2,278	1,743
Farm & Ranch | Cumulative Effect, Period of Adoption, Adjustment
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Beginning balance	0	0
Rural  Utilities
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Beginning balance	1,370	0	0	0
Provision for/(release of) losses	(80)	0	279	0
Ending balance	1,290	0	$ 1,290	$ 0
Rural  Utilities | Cumulative Effect, Period of Adoption, Adjustment
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Beginning balance	$ 0	$ 0

XML

Guarantees - Unpaid Principal Balances by Delinquency Status (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Guarantor Obligations [Line Items]
Financing receivable, not past due	$ 7,826,189
Financing receivables, past due	11,051	$ 57,700
Loans held for investment, at amortized cost	6,825,061	5,390,977
30-59 Days
Guarantor Obligations [Line Items]
Financing receivables, past due	3,513
60-89 Days
Guarantor Obligations [Line Items]
Financing receivables, past due	637
90 Days and Greater
Guarantor Obligations [Line Items]
Financing receivables, past due	6,901
Farm & Ranch
Guarantor Obligations [Line Items]
Financing receivable, not past due	5,716,834
Financing receivables, past due	11,051
Loans held for investment, at amortized cost	5,857,324
Farm & Ranch | 30-59 Days
Guarantor Obligations [Line Items]
Financing receivables, past due	3,513
Farm & Ranch | 60-89 Days
Guarantor Obligations [Line Items]
Financing receivables, past due	637
Farm & Ranch | 90 Days and Greater
Guarantor Obligations [Line Items]
Financing receivables, past due	6,901	$ 57,719
Farm & Ranch | 90 Days and Greater | Payment Deferral, CARES Act
Guarantor Obligations [Line Items]
Financing receivables, past due	105,300
Rural  Utilities
Guarantor Obligations [Line Items]
Financing receivable, not past due	2,109,355
Financing receivables, past due	0
Loans held for investment, at amortized cost	2,109,355
Rural  Utilities | 30-59 Days
Guarantor Obligations [Line Items]
Financing receivables, past due	0
Rural  Utilities | 60-89 Days
Guarantor Obligations [Line Items]
Financing receivables, past due	0
Rural  Utilities | 90 Days and Greater
Guarantor Obligations [Line Items]
Financing receivables, past due	0
LTSPCs and Farmer Mac Guaranteed Securities | Farm & Ranch
Guarantor Obligations [Line Items]
Financing receivable, not past due	2,352,454
Financing receivables, past due	39,571
Loans held for investment, at amortized cost	2,392,025
LTSPCs and Farmer Mac Guaranteed Securities | Farm & Ranch | Payment Deferral, CARES Act
Guarantor Obligations [Line Items]
Financing receivable, not past due	185,400
LTSPCs and Farmer Mac Guaranteed Securities | Farm & Ranch | 30-59 Days
Guarantor Obligations [Line Items]
Financing receivables, past due	2,934
LTSPCs and Farmer Mac Guaranteed Securities | Farm & Ranch | 60-89 Days
Guarantor Obligations [Line Items]
Financing receivables, past due	22,690
LTSPCs and Farmer Mac Guaranteed Securities | Farm & Ranch | 90 Days and Greater
Guarantor Obligations [Line Items]
Financing receivables, past due	13,947
LTSPCs | Rural  Utilities
Guarantor Obligations [Line Items]
Financing receivable, not past due	575,954
Financing receivables, past due	0
Loans held for investment, at amortized cost	575,954
LTSPCs | Rural  Utilities | 30-59 Days
Guarantor Obligations [Line Items]
Financing receivables, past due	0
LTSPCs | Rural  Utilities | 60-89 Days
Guarantor Obligations [Line Items]
Financing receivables, past due	0
LTSPCs | Rural  Utilities | 90 Days and Greater
Guarantor Obligations [Line Items]
Financing receivables, past due	$ 0

XML

Guarantees - Schedule of Allowance for Losses by Impairment Method and Commodity (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Ending Balance:
Total	$ 6,825,061	$ 5,390,977
Allowance for Losses:
Total	$ 15,821	10,454
Off-Balance Sheet:
Ending Balance:
Collectively evaluated for impairment:		2,481,612
Individually evaluated for impairment:		18,781
Total		2,500,393
Allowance for Losses:
Collectively evaluated for impairment:		1,821
Individually evaluated for impairment:		343
Total		2,164
Crops | Off-Balance Sheet:
Ending Balance:
Collectively evaluated for impairment:		1,151,983
Individually evaluated for impairment:		5,698
Total		1,157,681
Allowance for Losses:
Collectively evaluated for impairment:		599
Individually evaluated for impairment:		97
Total		696
Permanent Plantings | Off-Balance Sheet:
Ending Balance:
Collectively evaluated for impairment:		511,991
Individually evaluated for impairment:		2,114
Total		514,105
Allowance for Losses:
Collectively evaluated for impairment:		96
Individually evaluated for impairment:		43
Total		139
Livestock | Off-Balance Sheet:
Ending Balance:
Collectively evaluated for impairment:		581,377
Individually evaluated for impairment:		10,207
Total		591,584
Allowance for Losses:
Collectively evaluated for impairment:		308
Individually evaluated for impairment:		189
Total		497
Part-time Farm | Off-Balance Sheet:
Ending Balance:
Collectively evaluated for impairment:		167,395
Individually evaluated for impairment:		706
Total		168,101
Allowance for Losses:
Collectively evaluated for impairment:		50
Individually evaluated for impairment:		14
Total		64
Ag. Storage and Processing | Off-Balance Sheet:
Ending Balance:
Collectively evaluated for impairment:		66,106
Individually evaluated for impairment:		0
Total		66,106
Allowance for Losses:
Collectively evaluated for impairment:		767
Individually evaluated for impairment:		0
Total		767
Other | Off-Balance Sheet:
Ending Balance:
Collectively evaluated for impairment:		2,760
Individually evaluated for impairment:		56
Total		2,816
Allowance for Losses:
Collectively evaluated for impairment:		1
Individually evaluated for impairment:		0
Total		$ 1

XML

Guarantees - Schedule of Past Due Financing Receivables (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2020	Dec. 31, 2019
Guarantor Obligations [Line Items]
90-Days Delinquencies		$ 11,051	$ 57,700
Off-Balance Sheet:
Guarantor Obligations [Line Items]
90-Days Delinquencies			$ 3,235
Net credit losses (recoveries)	$ 0

XML

Guarantees - Credit Quality Indicators (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019
2020
Current period recoveries	$ 0		$ 0
2019
Current period recoveries	0		0
2017
Current period recoveries	0		0
2016
Current period recoveries	0		0
Prior
Current period recoveries	0		0
Revolving Loans - Amortized Cost Basis
Current period recoveries	0		0
Total
Loans held for investment, at amortized cost	6,825,061		6,825,061		$ 5,390,977
Current period charge-offs			100
Loans held for investment, at amortized cost	6,825,061		6,825,061		5,390,977
Financing receivables, past due	11,051		11,051		57,700
Off-Balance Sheet:
Total
Loans held for investment, at amortized cost					2,500,393
Loans held for investment, at amortized cost					2,500,393
Financing receivables, past due					3,235
Off-Balance Sheet: | Crops
Total
Loans held for investment, at amortized cost					1,157,681
Loans held for investment, at amortized cost					1,157,681
Financing receivables, past due					1,493
Off-Balance Sheet: | Permanent Plantings
Total
Loans held for investment, at amortized cost					514,105
Loans held for investment, at amortized cost					514,105
Financing receivables, past due					196
Off-Balance Sheet: | Livestock
Total
Loans held for investment, at amortized cost					591,584
Loans held for investment, at amortized cost					591,584
Financing receivables, past due					1,066
Off-Balance Sheet: | Part-time Farm
Total
Loans held for investment, at amortized cost					168,101
Loans held for investment, at amortized cost					168,101
Financing receivables, past due					480
Off-Balance Sheet: | Ag. Storage and Processing
Total
Loans held for investment, at amortized cost					66,106
Loans held for investment, at amortized cost					66,106
Financing receivables, past due					0
Off-Balance Sheet: | Other
Total
Loans held for investment, at amortized cost					2,816
Loans held for investment, at amortized cost					2,816
Financing receivables, past due					0
Rural  Utilities
2020
Total	502,873		502,873
Current period charge-offs	0		0
Current period net charge-offs	0		0
2019
Total	819,099		819,099
Current period charge-offs	0		0
Current period net charge-offs	0		0
2018
Total	8,260		8,260
Current period charge-offs	0		0
Current period recoveries	0		0
Current period net charge-offs	0		0
2017
Total	92,223		92,223
Current period charge-offs	0		0
Current period net charge-offs	0		0
2016
Total	31,275		31,275
Current period charge-offs	0		0
Current period net charge-offs	0		0
Prior
Total	642,755		642,755
Current period charge-offs	0		0
Current period net charge-offs	0		0
Revolving Loans - Amortized Cost Basis
Total	12,870		12,870
Current period charge-offs	0		0
Current period net charge-offs	0		0
Total
Loans held for investment, at amortized cost	2,109,355		2,109,355
Current period charge-offs	0		0
Current period recoveries	0		0
Current period net charge-offs	0	$ 0	0	$ 0
Loans held for investment, at amortized cost	2,109,355		2,109,355
Financing receivables, past due	0		0
Farm & Ranch
2020
Total	1,470,275		1,470,275
Current period charge-offs	0		0
Current period recoveries	0		0
Current period net charge-offs	0		0
2019
Total	895,361		895,361
Current period charge-offs	0		0
Current period recoveries	0		0
Current period net charge-offs	0		0
2018
Total	554,657		554,657
Current period charge-offs	0		0
Current period recoveries	0		0
Current period net charge-offs	0		0
2017
Total	619,269		619,269
Current period charge-offs	0		0
Current period recoveries	0		0
Current period net charge-offs	0		0
2016
Total	547,029		547,029
Current period charge-offs	0		0
Current period recoveries	0		0
Current period net charge-offs	0		0
Prior
Total	1,239,199		1,239,199
Current period charge-offs	0		394
Current period recoveries	0		0
Current period net charge-offs	0		394
Revolving Loans - Amortized Cost Basis
Total	531,534		531,534
Current period charge-offs	0		0
Current period recoveries	0		0
Current period net charge-offs	0		0
Total
Loans held for investment, at amortized cost	5,857,324		5,857,324
Current period charge-offs	0		394
Current period recoveries	0		0
Current period net charge-offs	0	$ 0	394	$ 67
Loans held for investment, at amortized cost	5,857,324		5,857,324
Financing receivables, past due	11,051		11,051
Acceptable | Off-Balance Sheet:
Total
Loans held for investment, at amortized cost					2,269,005
Loans held for investment, at amortized cost					2,269,005
Acceptable | Off-Balance Sheet: | Crops
Total
Loans held for investment, at amortized cost					1,033,002
Loans held for investment, at amortized cost					1,033,002
Acceptable | Off-Balance Sheet: | Permanent Plantings
Total
Loans held for investment, at amortized cost					484,601
Loans held for investment, at amortized cost					484,601
Acceptable | Off-Balance Sheet: | Livestock
Total
Loans held for investment, at amortized cost					521,341
Loans held for investment, at amortized cost					521,341
Acceptable | Off-Balance Sheet: | Part-time Farm
Total
Loans held for investment, at amortized cost					161,361
Loans held for investment, at amortized cost					161,361
Acceptable | Off-Balance Sheet: | Ag. Storage and Processing
Total
Loans held for investment, at amortized cost					66,106
Loans held for investment, at amortized cost					66,106
Acceptable | Off-Balance Sheet: | Other
Total
Loans held for investment, at amortized cost					2,594
Loans held for investment, at amortized cost					2,594
Acceptable | Rural  Utilities
2020
Total	502,873		502,873
2019
Total	819,099		819,099
2018
Total	8,260		8,260
2017
Total	92,223		92,223
2016
Total	31,275		31,275
Prior
Total	638,281		638,281
Revolving Loans - Amortized Cost Basis
Total	12,870		12,870
Total
Loans held for investment, at amortized cost	2,104,881		2,104,881
Loans held for investment, at amortized cost	2,104,881		2,104,881
Acceptable | Farm & Ranch
2020
Total	1,423,112		1,423,112
2019
Total	765,367		765,367
2018
Total	507,218		507,218
2017
Total	557,095		557,095
2016
Total	499,642		499,642
Prior
Total	1,157,633		1,157,633
Revolving Loans - Amortized Cost Basis
Total	472,209		472,209
Total
Loans held for investment, at amortized cost	5,382,276		5,382,276
Loans held for investment, at amortized cost	5,382,276		5,382,276
Special mention | Off-Balance Sheet:
Total
Loans held for investment, at amortized cost					128,511
Loans held for investment, at amortized cost					128,511
Special mention | Off-Balance Sheet: | Crops
Total
Loans held for investment, at amortized cost					68,372
Loans held for investment, at amortized cost					68,372
Special mention | Off-Balance Sheet: | Permanent Plantings
Total
Loans held for investment, at amortized cost					22,909
Loans held for investment, at amortized cost					22,909
Special mention | Off-Balance Sheet: | Livestock
Total
Loans held for investment, at amortized cost					35,618
Loans held for investment, at amortized cost					35,618
Special mention | Off-Balance Sheet: | Part-time Farm
Total
Loans held for investment, at amortized cost					1,612
Loans held for investment, at amortized cost					1,612
Special mention | Off-Balance Sheet: | Ag. Storage and Processing
Total
Loans held for investment, at amortized cost					0
Loans held for investment, at amortized cost					0
Special mention | Off-Balance Sheet: | Other
Total
Loans held for investment, at amortized cost					0
Loans held for investment, at amortized cost					0
Special mention | Rural  Utilities
2020
Total	0		0
2019
Total	0		0
2018
Total	0		0
2017
Total	0		0
2016
Total	0		0
Prior
Total	0		0
Revolving Loans - Amortized Cost Basis
Total	0		0
Total
Loans held for investment, at amortized cost	0		0
Loans held for investment, at amortized cost	0		0
Special mention | Farm & Ranch
2020
Total	39,607		39,607
2019
Total	124,068		124,068
2018
Total	27,757		27,757
2017
Total	4,633		4,633
2016
Total	10,897		10,897
Prior
Total	22,236		22,236
Revolving Loans - Amortized Cost Basis
Total	50,395		50,395
Total
Loans held for investment, at amortized cost	279,593		279,593
Loans held for investment, at amortized cost	279,593		279,593
Substandard | Off-Balance Sheet:
Total
Loans held for investment, at amortized cost					102,877
Loans held for investment, at amortized cost					102,877
Substandard | Off-Balance Sheet: | Crops
Total
Loans held for investment, at amortized cost					56,307
Loans held for investment, at amortized cost					56,307
Substandard | Off-Balance Sheet: | Permanent Plantings
Total
Loans held for investment, at amortized cost					6,595
Loans held for investment, at amortized cost					6,595
Substandard | Off-Balance Sheet: | Livestock
Total
Loans held for investment, at amortized cost					34,625
Loans held for investment, at amortized cost					34,625
Substandard | Off-Balance Sheet: | Part-time Farm
Total
Loans held for investment, at amortized cost					5,128
Loans held for investment, at amortized cost					5,128
Substandard | Off-Balance Sheet: | Ag. Storage and Processing
Total
Loans held for investment, at amortized cost					0
Loans held for investment, at amortized cost					0
Substandard | Off-Balance Sheet: | Other
Total
Loans held for investment, at amortized cost					222
Loans held for investment, at amortized cost					$ 222
Substandard | Rural  Utilities
2020
Total	0		0
2019
Total	0		0
2018
Total	0		0
2017
Total	0		0
2016
Total	0		0
Prior
Total	4,474		4,474
Revolving Loans - Amortized Cost Basis
Total	0		0
Total
Loans held for investment, at amortized cost	4,474		4,474
Loans held for investment, at amortized cost	4,474		4,474
Substandard | Farm & Ranch
2020
Total	7,556		7,556
2019
Total	5,926		5,926
2018
Total	19,682		19,682
2017
Total	57,541		57,541
2016
Total	36,490		36,490
Prior
Total	59,330		59,330
Revolving Loans - Amortized Cost Basis
Total	8,930		8,930
Total
Loans held for investment, at amortized cost	195,455		195,455
Loans held for investment, at amortized cost	195,455		195,455
LTSPCs | Rural  Utilities
2020
Total	0		0
2019
Total	0		0
2018
Total	0		0
2017
Total	0		0
2016
Total	0		0
Prior
Total	569,324		569,324
Revolving Loans - Amortized Cost Basis
Total	6,630		6,630
Total
Loans held for investment, at amortized cost	575,954		575,954
Loans held for investment, at amortized cost	575,954		575,954
Financing receivables, past due	0		0
LTSPCs | Acceptable | Rural  Utilities
2020
Total	0		0
2019
Total	0		0
2018
Total	0		0
2017
Total	0		0
2016
Total	0		0
Prior
Total	569,324		569,324
Revolving Loans - Amortized Cost Basis
Total	6,630		6,630
Total
Loans held for investment, at amortized cost	575,954		575,954
Loans held for investment, at amortized cost	575,954		575,954
LTSPCs | Special mention | Rural  Utilities
2020
Total	0		0
2019
Total	0		0
2018
Total	0		0
2017
Total	0		0
2016
Total	0		0
Prior
Total	0		0
Revolving Loans - Amortized Cost Basis
Total	0		0
Total
Loans held for investment, at amortized cost	0		0
Loans held for investment, at amortized cost	0		0
LTSPCs | Substandard | Rural  Utilities
2020
Total	0		0
2019
Total	0		0
2018
Total	0		0
2017
Total	0		0
2016
Total	0		0
Prior
Total	0		0
Revolving Loans - Amortized Cost Basis
Total	0		0
Total
Loans held for investment, at amortized cost	0		0
Loans held for investment, at amortized cost	0		0
LTSPCs and Farmer Mac Guaranteed Securities | Farm & Ranch
2020
Total	118,380		118,380
Current period charge-offs	0		0
Current period recoveries	0		0
Current period net charge-offs	0		0
2019
Total	219,765		219,765
Current period charge-offs	0		0
Current period recoveries	0		0
Current period net charge-offs	0		0
2018
Total	198,606		198,606
Current period charge-offs	0		0
Current period recoveries	0		0
Current period net charge-offs	0		0
2017
Total	284,304		284,304
Current period charge-offs	0		0
Current period recoveries	0		0
Current period net charge-offs	0		0
2016
Total	246,012		246,012
Current period charge-offs	0		0
Current period recoveries	0		0
Current period net charge-offs	0		0
Prior
Total	1,136,686		1,136,686
Current period charge-offs	0		0
Current period recoveries	0		0
Current period net charge-offs	0		0
Revolving Loans - Amortized Cost Basis
Total	188,272		188,272
Current period charge-offs	0		0
Current period recoveries	0		0
Current period net charge-offs	0		0
Total
Loans held for investment, at amortized cost	2,392,025		2,392,025
Current period charge-offs	0		0
Current period recoveries	0		0
Current period net charge-offs	0		0
Loans held for investment, at amortized cost	2,392,025		2,392,025
Financing receivables, past due	39,571		39,571
LTSPCs and Farmer Mac Guaranteed Securities | Acceptable | Farm & Ranch
2020
Total	118,116		118,116
2019
Total	207,202		207,202
2018
Total	184,421		184,421
2017
Total	245,490		245,490
2016
Total	216,983		216,983
Prior
Total	1,021,400		1,021,400
Revolving Loans - Amortized Cost Basis
Total	173,617		173,617
Total
Loans held for investment, at amortized cost	2,167,229		2,167,229
Loans held for investment, at amortized cost	2,167,229		2,167,229
LTSPCs and Farmer Mac Guaranteed Securities | Special mention | Farm & Ranch
2020
Total	0		0
2019
Total	1,742		1,742
2018
Total	1,509		1,509
2017
Total	23,200		23,200
2016
Total	14,628		14,628
Prior
Total	47,948		47,948
Revolving Loans - Amortized Cost Basis
Total	10,040		10,040
Total
Loans held for investment, at amortized cost	99,067		99,067
Loans held for investment, at amortized cost	99,067		99,067
LTSPCs and Farmer Mac Guaranteed Securities | Substandard | Farm & Ranch
2020
Total	264		264
2019
Total	10,821		10,821
2018
Total	12,676		12,676
2017
Total	15,614		15,614
2016
Total	14,401		14,401
Prior
Total	67,338		67,338
Revolving Loans - Amortized Cost Basis
Total	4,615		4,615
Total
Loans held for investment, at amortized cost	125,729		125,729
Loans held for investment, at amortized cost	$ 125,729		$ 125,729

XML

Notes Payable (Details) - USD ($)	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Debt Instrument [Line Items]
Medium term notes called during the period	$ 2,700,000,000	$ 700,000,000
Maximum borrowing capacity from U.S. Treasury	1,500,000,000
Outstanding debt repurchases	$ 0	0
Discount Notes
Debt Instrument [Line Items]
Maturities of notes	1 year
Medium-term notes | Minimum
Debt Instrument [Line Items]
Maturities of notes	6 months
Medium-term notes | Maximum
Debt Instrument [Line Items]
Maturities of notes	15 years
Discount notes
Debt Instrument [Line Items]
Maximum amount of discount notes outstanding at any month end	$ 2,600,000,000	$ 2,200,000,000

XML

Notes Payable - Borrowings (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2020	Dec. 31, 2019
Due within one year:
Current portion of medium-term notes	$ 10,935,083	$ 10,019,082
Weighted - average rate (as a percent)	0.63%	1.84%
Medium-term notes due in:
Two years	$ 3,277,494	$ 3,700,835
Three years	2,326,812	1,594,709
Four years	1,056,062	1,205,276
Five years	1,242,150	760,887
Thereafter	2,751,684	1,817,859
Total due after one year	10,654,202	9,079,566
Total	$ 21,589,285	$ 19,098,648
Weighted - average rate (as a percent)	1.47%	2.28%
Total weighted - average rate (as a percent)	1.05%	2.05%
Two years
Medium-term notes due in:
Weighted - average rate (as a percent)	0.96%	2.04%
Three years
Medium-term notes due in:
Weighted - average rate (as a percent)	1.44%	2.15%
Four years
Medium-term notes due in:
Weighted - average rate (as a percent)	1.73%	2.27%
Five years
Medium-term notes due in:
Weighted - average rate (as a percent)	1.35%	2.25%
Thereafter
Medium-term notes due in:
Weighted - average rate (as a percent)	2.07%	2.89%
Discount notes
Due within one year:
Current portion of medium-term notes	$ 2,358,943	$ 2,194,177
Weighted - average rate (as a percent)	0.21%	1.72%
Short-term debt, average outstanding during the quarter	$ 2,313,477	$ 1,977,214
Weighted - average rate, average outstanding during the quarter (as a percent)	0.79%	2.25%
Medium-term notes
Due within one year:
Current portion of medium-term notes	$ 2,065,148	$ 1,152,770
Weighted - average rate (as a percent)	0.27%	1.98%
Short-term debt, average outstanding during the quarter	$ 1,312,909	$ 1,780,517
Weighted - average rate, average outstanding during the quarter (as a percent)	0.81%	2.33%
Current portion of medium-term notes
Due within one year:
Current portion of medium-term notes	$ 6,510,992	$ 6,672,135
Weighted - average rate (as a percent)	0.90%	1.85%

XML

Notes Payable - Callable Medium-Term Notes (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Debt Instrument [Line Items]
2022	$ 3,277,494	$ 3,700,835
2023	2,326,812	1,594,709
2024	1,056,062	1,205,276
Total	$ 21,589,285	$ 19,098,648
Weighted - average rate (as a percent)	1.47%	2.28%
Call Option
Debt Instrument [Line Items]
2021	$ 215,949
2022	122,918
2023	127,863
2024	59,941
Thereafter	374,144
Total	$ 900,815
Weighted - average rate (as a percent)	1.04%
Call Option | 2021
Debt Instrument [Line Items]
Weighted - average rate (as a percent)	0.17%
Call Option | 2022
Debt Instrument [Line Items]
Weighted - average rate (as a percent)	0.59%
Call Option | 2023
Debt Instrument [Line Items]
Weighted - average rate (as a percent)	0.47%
Call Option | 2024
Debt Instrument [Line Items]
Weighted - average rate (as a percent)	1.33%
Call Option | Thereafter
Debt Instrument [Line Items]
Weighted - average rate (as a percent)	1.84%

XML

Notes Payable - Earliest Interest Reset Date of Borrowing Outstanding (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Debt Instrument [Line Items]
2022	$ 3,277,494	$ 3,700,835
2023	2,326,812	1,594,709
2024	1,056,062	1,205,276
Total	$ 21,589,285	$ 19,098,648
Short-term debt, weighted average rate (as a percent)	0.63%	1.84%
Weighted - average rate (as a percent)	1.47%	2.28%
Total weighted - average rate (as a percent)	1.05%	2.05%
2020
Debt Instrument [Line Items]
2020	$ 10,523,446
Short-term debt, weighted average rate (as a percent)	0.31%
2021
Debt Instrument [Line Items]
2021	$ 3,219,231
Weighted - average rate (as a percent)	1.55%
2022
Debt Instrument [Line Items]
2022	$ 1,787,566
Weighted - average rate (as a percent)	1.59%
2023
Debt Instrument [Line Items]
2023	$ 2,026,445
Weighted - average rate (as a percent)	1.62%
2024
Debt Instrument [Line Items]
2024	$ 919,753
Weighted - average rate (as a percent)	1.77%
Thereafter
Debt Instrument [Line Items]
Thereafter	$ 3,112,844
Weighted - average rate (as a percent)	2.09%

XML

Equity (Details) - USD ($)		1 Months Ended	3 Months Ended							9 Months Ended		57 Months Ended
	Sep. 19, 2020	May 31, 2020	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Sep. 30, 2020	Sep. 30, 2019	Jun. 30, 2020	Mar. 14, 2019	Mar. 31, 2016
Class of Stock [Line Items]
Loss on retirement of preferred stock			$ 1,667,000				$ 0	$ 1,956,000		$ 1,667,000	$ 1,956,000
Quarterly dividend on all classes of common stock (in dollars per share)			$ 0.80	$ 0.80	$ 0.80	$ 0.70	$ 0.70	$ 0.70	$ 0.70
Capital required for capital adequacy			$ 670,000,000.0			$ 618,800,000				670,000,000.0
Capital			984,200,000			815,400,000				984,200,000
Excess capital			$ 314,200,000			$ 196,600,000				$ 314,200,000
5.250% Non-Cumulative Preferred Stock, Series F
Class of Stock [Line Items]
Number of shares issued (in shares)		4,800,000
Preferred stock, dividend rate (as a percent)		5.25%
Preferred stock, par value (in dollars per share)		$ 25.00	$ 25			$ 25				$ 25
Payments of stock issuance costs		$ 3,800,000
Series A Preferred Stock
Class of Stock [Line Items]
Preferred stock, dividend rate (as a percent)	5.875%
Preferred stock, par value (in dollars per share)			25			25				25
Stock authorized for repurchase	$ 60,000,000.0
Loss on retirement of preferred stock	$ 1,700,000
Series E Preferred Stock
Class of Stock [Line Items]
Number of shares issued (in shares)		3,180,000
Preferred stock, dividend rate (as a percent)		5.75%
Preferred stock, par value (in dollars per share)		$ 25.00	$ 25			$ 25				$ 25
Payments of stock issuance costs		$ 2,500,000
Class C non-voting common stock
Class of Stock [Line Items]
Stock authorized for repurchase													$ 10,000,000.0	$ 25,000,000.0
Shares repurchased (in shares)				4,000								673,000
Shares repurchased				$ 200,000								$ 19,800,000

XML

Fair Value Disclosures - Fair Value Measurements, Recurring and Nonrecurring (Details) - USD ($)	Sep. 30, 2020	Dec. 31, 2019
Assets:
Financial derivatives	$ 12,237,000	$ 7,834,000
Loans held for sale	20,000,000	0
Liabilities:
Financial derivatives	188,289,000	105,087,000
Investment securities
Assets:
Available-for-sale, at fair value	3,532,190,000	2,959,843,000
Farmer Mac Guaranteed Securities
Assets:
Available-for-sale, at fair value	7,511,638,000
Fair Value, Measurements, Recurring
Assets:
Trading	6,830,000	8,913,000
Financial derivatives	12,837,000	10,519,000
Total Assets at fair value	11,063,495,000	10,122,300,000
Liabilities:
Financial derivatives	37,357,000	27,042,000
Total Liabilities at fair value	37,357,000	27,042,000
Fair Value, Measurements, Recurring | USDA Securities:
Assets:
Trading	6,830,000	8,913,000
Fair Value, Measurements, Recurring | Investment securities
Assets:
Available-for-sale, at fair value	3,532,190,000	2,959,843,000
Fair Value, Measurements, Recurring | Level 1
Assets:
Trading	0	0
Financial derivatives	9,000	0
Total Assets at fair value	1,217,575,000	1,296,923,000
Liabilities:
Financial derivatives	0	51,000
Total Liabilities at fair value	0	51,000
Fair Value, Measurements, Recurring | Level 1 | USDA Securities:
Assets:
Trading	0	0
Fair Value, Measurements, Recurring | Level 1 | Investment securities
Assets:
Available-for-sale, at fair value	1,217,566,000	1,296,923,000
Fair Value, Measurements, Recurring | Level 2
Assets:
Trading	0	0
Financial derivatives	12,828,000	10,519,000
Total Assets at fair value	2,308,380,000	1,654,527,000
Liabilities:
Financial derivatives	37,357,000	26,991,000
Total Liabilities at fair value	37,357,000	26,991,000
Fair Value, Measurements, Recurring | Level 2 | USDA Securities:
Assets:
Trading	0	0
Fair Value, Measurements, Recurring | Level 2 | Investment securities
Assets:
Available-for-sale, at fair value	2,295,552,000	1,644,008,000
Fair Value, Measurements, Recurring | Level 3
Assets:
Trading	6,830,000	8,913,000
Financial derivatives	0	0
Total Assets at fair value	7,537,540,000	7,170,850,000
Liabilities:
Financial derivatives	0	0
Total Liabilities at fair value	0	0
Fair Value, Measurements, Recurring | Level 3 | USDA Securities:
Assets:
Trading	6,830,000	8,913,000
Fair Value, Measurements, Recurring | Level 3 | Investment securities
Assets:
Available-for-sale, at fair value	19,072,000	18,912,000
Fair Value, Nonrecurring
Assets:
Loans held for sale	22,086,000
Total Assets at fair value	22,086,000
Fair Value, Nonrecurring | Level 1
Assets:
Loans held for sale	0
Total Assets at fair value	0
Fair Value, Nonrecurring | Level 2
Assets:
Loans held for sale	0
Total Assets at fair value	0
Fair Value, Nonrecurring | Level 3
Assets:
Loans held for sale	22,086,000
Total Assets at fair value	22,086,000
AgVantage Securities | Farmer Mac Guaranteed Securities
Assets:
Available-for-sale, at fair value	7,511,638,000	7,143,025,000
AgVantage Securities | Fair Value, Measurements, Recurring | Farmer Mac Guaranteed Securities
Assets:
Available-for-sale, at fair value	7,511,638,000	7,143,025,000
AgVantage Securities | Fair Value, Measurements, Recurring | Level 1 | Farmer Mac Guaranteed Securities
Assets:
Available-for-sale, at fair value	0	0
AgVantage Securities | Fair Value, Measurements, Recurring | Level 2 | Farmer Mac Guaranteed Securities
Assets:
Available-for-sale, at fair value	0	0
AgVantage Securities | Fair Value, Measurements, Recurring | Level 3 | Farmer Mac Guaranteed Securities
Assets:
Available-for-sale, at fair value	7,511,638,000	7,143,025,000
USDA Guarantees | Fair Value, Measurements, Recurring | Farmer Mac Guaranteed Securities
Assets:
Available-for-sale, at fair value	7,511,638,000	7,143,025,000
USDA Guarantees | Fair Value, Measurements, Recurring | Level 1 | Farmer Mac Guaranteed Securities
Assets:
Available-for-sale, at fair value	0	0
USDA Guarantees | Fair Value, Measurements, Recurring | Level 2 | Farmer Mac Guaranteed Securities
Assets:
Available-for-sale, at fair value	0	0
USDA Guarantees | Fair Value, Measurements, Recurring | Level 3 | Farmer Mac Guaranteed Securities
Assets:
Available-for-sale, at fair value	7,511,638,000	7,143,025,000
Floating Interest Rate | Floating rate auction-rate certificates backed by Government guaranteed student loans
Assets:
Available-for-sale, at fair value	19,072,000	18,912,000
Floating Interest Rate | Floating rate asset-backed securities
Assets:
Available-for-sale, at fair value	9,201,000	11,085,000
Floating Interest Rate | Guaranteed mortgage-backed securities
Assets:
Available-for-sale, at fair value	2,286,033,000	1,632,583,000
Floating Interest Rate | Fair Value, Measurements, Recurring | Floating rate auction-rate certificates backed by Government guaranteed student loans
Assets:
Available-for-sale, at fair value	19,072,000	18,912,000
Floating Interest Rate | Fair Value, Measurements, Recurring | Floating rate asset-backed securities
Assets:
Available-for-sale, at fair value	9,201,000	11,085,000
Floating Interest Rate | Fair Value, Measurements, Recurring | Guaranteed mortgage-backed securities
Assets:
Available-for-sale, at fair value	2,286,033,000	1,632,583,000
Floating Interest Rate | Fair Value, Measurements, Recurring | Level 1 | Floating rate auction-rate certificates backed by Government guaranteed student loans
Assets:
Available-for-sale, at fair value	0	0
Floating Interest Rate | Fair Value, Measurements, Recurring | Level 1 | Floating rate asset-backed securities
Assets:
Available-for-sale, at fair value	0	0
Floating Interest Rate | Fair Value, Measurements, Recurring | Level 1 | Guaranteed mortgage-backed securities
Assets:
Available-for-sale, at fair value	0	0
Floating Interest Rate | Fair Value, Measurements, Recurring | Level 2 | Floating rate auction-rate certificates backed by Government guaranteed student loans
Assets:
Available-for-sale, at fair value	0	0
Floating Interest Rate | Fair Value, Measurements, Recurring | Level 2 | Floating rate asset-backed securities
Assets:
Available-for-sale, at fair value	9,201,000	11,085,000
Floating Interest Rate | Fair Value, Measurements, Recurring | Level 2 | Guaranteed mortgage-backed securities
Assets:
Available-for-sale, at fair value	2,286,033,000	1,632,583,000
Floating Interest Rate | Fair Value, Measurements, Recurring | Level 3 | Floating rate auction-rate certificates backed by Government guaranteed student loans
Assets:
Available-for-sale, at fair value	19,072,000	18,912,000
Floating Interest Rate | Fair Value, Measurements, Recurring | Level 3 | Floating rate asset-backed securities
Assets:
Available-for-sale, at fair value	0	0
Floating Interest Rate | Fair Value, Measurements, Recurring | Level 3 | Guaranteed mortgage-backed securities
Assets:
Available-for-sale, at fair value	0	0
Fixed Interest Rate | Guaranteed mortgage-backed securities
Assets:
Available-for-sale, at fair value	318,000	340,000
Fixed Interest Rate | Fixed rate U.S. Treasuries
Assets:
Available-for-sale, at fair value	1,217,566,000	1,296,923,000
Fixed Interest Rate | Fair Value, Measurements, Recurring | Guaranteed mortgage-backed securities
Assets:
Available-for-sale, at fair value	318,000	340,000
Fixed Interest Rate | Fair Value, Measurements, Recurring | Fixed rate U.S. Treasuries
Assets:
Available-for-sale, at fair value	1,217,566,000	1,296,923,000
Fixed Interest Rate | Fair Value, Measurements, Recurring | Level 1 | Guaranteed mortgage-backed securities
Assets:
Available-for-sale, at fair value	0	0
Fixed Interest Rate | Fair Value, Measurements, Recurring | Level 1 | Fixed rate U.S. Treasuries
Assets:
Available-for-sale, at fair value	1,217,566,000	1,296,923,000
Fixed Interest Rate | Fair Value, Measurements, Recurring | Level 2 | Guaranteed mortgage-backed securities
Assets:
Available-for-sale, at fair value	318,000	340,000
Fixed Interest Rate | Fair Value, Measurements, Recurring | Level 2 | Fixed rate U.S. Treasuries
Assets:
Available-for-sale, at fair value	0	0
Fixed Interest Rate | Fair Value, Measurements, Recurring | Level 3 | Guaranteed mortgage-backed securities
Assets:
Available-for-sale, at fair value	0	0
Fixed Interest Rate | Fair Value, Measurements, Recurring | Level 3 | Fixed rate U.S. Treasuries
Assets:
Available-for-sale, at fair value	$ 0	$ 0

XML

Fair Value Disclosures - Narrative (Details) - Level 3	Sep. 30, 2020	Dec. 31, 2019
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Percent of level three fair value assets and liabilities	32.00%	33.00%
Financial instruments level three percent	68.00%	71.00%

XML

Fair Value Disclosures - Unobservable Input Reconciliation (Details) - Level 3 - Fair Value, Measurements, Recurring - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning Balance	$ 7,924,456	$ 7,064,077	$ 7,170,850	$ 6,003,211
Purchases	122,892	349,654	958,368	1,788,097
Sales	0	(9,506)	0	(57,853)
Settlements	(514,561)	(254,900)	(828,290)	(726,116)
Allowance for losses	(95)		(367)
Realized and unrealized gains/(losses) included in Income	(42,091)	84,213	257,424	258,309
Unrealized gains/(losses) included in Other Comprehensive Income	46,939	(22,846)	(20,445)	(54,956)
Ending Balance	7,537,540	7,210,692	7,537,540	7,210,692
Available-for-Sale Securities
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning Balance	18,283	19,208	18,912	18,715
Purchases	0	0	0	0
Sales	0	0	0	0
Settlements	0	0	0	0
Allowance for losses	1		(37)
Realized and unrealized gains/(losses) included in Income	0	0	0	0
Unrealized gains/(losses) included in Other Comprehensive Income	788	0	197	493
Ending Balance	19,072	19,208	19,072	19,208
Available-for-Sale Securities | Farmer Mac Guaranteed Securities
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning Balance	7,898,387	7,035,668	7,143,025	5,974,497
Purchases	122,892	340,148	958,368	1,730,244
Sales	0	0	0	0
Settlements	(513,864)	(254,593)	(826,380)	(724,906)
Allowance for losses	(96)		(330)
Realized and unrealized gains/(losses) included in Income	(41,832)	84,164	257,597	258,155
Unrealized gains/(losses) included in Other Comprehensive Income	46,151	(22,846)	(20,642)	(55,449)
Ending Balance	7,511,638	7,182,541	7,511,638	7,182,541
USDA Securities:
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning Balance			8,913
Ending Balance	6,830		6,830
AgVantage Securities | Available-for-Sale Securities | Farmer Mac Guaranteed Securities
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning Balance	7,898,387	7,035,668	7,143,025	5,974,497
Purchases	122,892	340,148	958,368	1,730,244
Sales	0	0	0	0
Settlements	(513,864)	(254,593)	(826,380)	(724,906)
Allowance for losses	(96)		(330)
Realized and unrealized gains/(losses) included in Income	(41,832)	84,164	257,597	258,155
Unrealized gains/(losses) included in Other Comprehensive Income	46,151	(22,846)	(20,642)	(55,449)
Ending Balance	7,511,638	7,182,541	7,511,638	7,182,541
USDA Guarantees | Available-for-Sale Securities
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning Balance		0		0
Purchases		9,506		57,853
Sales		(9,506)		(57,853)
Settlements		0		0
Realized and unrealized gains/(losses) included in Income		0		0
Unrealized gains/(losses) included in Other Comprehensive Income		0		0
Ending Balance		0		0
USDA Guarantees | Trading
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning Balance	7,786	9,201	8,913	9,999
Purchases	0	0	0	0
Sales	0	0	0	0
Settlements	(697)	(307)	(1,910)	(1,210)
Allowance for losses	0		0
Realized and unrealized gains/(losses) included in Income	(259)	49	(173)	154
Unrealized gains/(losses) included in Other Comprehensive Income	0	0	0	0
Ending Balance	6,830	8,943	6,830	8,943
USDA Guarantees | USDA Securities:
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning Balance	7,786	9,201	8,913	9,999
Purchases	0	9,506	0	57,853
Sales	0	(9,506)	0	(57,853)
Settlements	(697)	(307)	(1,910)	(1,210)
Allowance for losses
Realized and unrealized gains/(losses) included in Income	(259)	49	(173)	154
Unrealized gains/(losses) included in Other Comprehensive Income	0	0	0	0
Ending Balance	6,830	8,943	6,830	8,943
Floating Interest Rate | Available-for-Sale Securities | Floating rate auction-rate certificates backed by Government guaranteed student loans
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning Balance	18,283	19,208	18,912	18,715
Purchases	0	0	0	0
Sales	0	0	0	0
Settlements	0	0	0	0
Allowance for losses	1		(37)
Realized and unrealized gains/(losses) included in Income	0	0	0	0
Unrealized gains/(losses) included in Other Comprehensive Income	788	0	197	493
Ending Balance	$ 19,072	$ 19,208	$ 19,072	$ 19,208

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Fair Value Disclosures - Quantitative Information (Details) - Fair Value, Measurements, Recurring - Level 3 $ in Thousands	Sep. 30, 2020 USD ($)	Jun. 30, 2020 USD ($)	Dec. 31, 2019 USD ($)	Sep. 30, 2019 USD ($)	Jun. 30, 2019 USD ($)	Dec. 31, 2018 USD ($)
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Fair Value	$ 7,537,540	$ 7,924,456	$ 7,170,850	$ 7,210,692	$ 7,064,077	$ 6,003,211
Floating rate auction-rate certificates backed by Government guaranteed student loans | Floating Interest Rate
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Fair Value	19,072		18,912
USDA Securities:
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Fair Value	6,830		8,913
AgVantage Securities | Farmer Mac Guaranteed Securities
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Fair Value	7,511,638		7,143,025
USDA Guarantees | USDA Securities:
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Fair Value	$ 6,830	$ 7,786	$ 8,913	$ 8,943	$ 9,201	$ 9,999
Measurement Input, Range of Broker Quotes | Minimum | Floating rate auction-rate certificates backed by Government guaranteed student loans | Valuation, Market Approach
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Investment securities, measurement input	0.970		0.960
Measurement Input, Range of Broker Quotes | Maximum | Floating rate auction-rate certificates backed by Government guaranteed student loans | Valuation, Market Approach
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Investment securities, measurement input	0.970		0.960
Measurement Input, Range of Broker Quotes | Weighted Average | Floating rate auction-rate certificates backed by Government guaranteed student loans | Valuation, Market Approach
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Investment securities, measurement input	0.970		0.960
Measurement Input, Discount Rate | Minimum | AgVantage Securities | Farmer Mac Guaranteed Securities | Valuation, Cost Approach
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Investment securities, measurement input	0.008		0.023
Measurement Input, Discount Rate | Minimum | USDA Guarantees | USDA Securities: | Valuation, Cost Approach
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
USDA securities, measurement input	0.013		0.023
Measurement Input, Discount Rate | Maximum | AgVantage Securities | Farmer Mac Guaranteed Securities | Valuation, Cost Approach
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Investment securities, measurement input	0.023		0.055
Measurement Input, Discount Rate | Maximum | USDA Guarantees | USDA Securities: | Valuation, Cost Approach
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
USDA securities, measurement input	0.033		0.026
Measurement Input, Discount Rate | Weighted Average | AgVantage Securities | Farmer Mac Guaranteed Securities | Valuation, Cost Approach
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Investment securities, measurement input	0.012		0.026
Measurement Input, Discount Rate | Weighted Average | USDA Guarantees | USDA Securities: | Valuation, Cost Approach
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
USDA securities, measurement input	0.026		0.021
Measurement Input, Constant Prepayment Rate | Minimum | USDA Guarantees | USDA Securities: | Valuation, Cost Approach
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
USDA securities, measurement input	0.23		0.10
Measurement Input, Constant Prepayment Rate | Maximum | USDA Guarantees | USDA Securities: | Valuation, Cost Approach
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
USDA securities, measurement input	0.49		0.21
Measurement Input, Constant Prepayment Rate | Weighted Average | USDA Guarantees | USDA Securities: | Valuation, Cost Approach
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
USDA securities, measurement input	0.43		0.19

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Fair Value Disclosures - Summary of Carrying Value and Fair Value (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial derivatives	$ 12,237	$ 7,834
Guarantee and commitment fees receivable	36,664	38,442
Financial derivatives	188,289	105,087
Guarantee and commitment obligation	35,140	36,700
Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and cash equivalents	910,592	604,381
Loans	8,450,522	7,317,091
Financial derivatives	12,837	10,519
Guarantee and commitment fees receivable	34,801	36,732
Notes payable	21,893,043	19,234,079
Debt securities of consolidated trusts held by third parties	1,337,741	1,663,177
Financial derivatives	37,357	27,042
Guarantee and commitment obligation	33,278	34,990
Fair Value | Investment securities
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Marketable securities	3,578,375	3,005,828
Fair Value | Farmer Mac Guaranteed Securities
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Marketable securities	8,739,103	8,606,451
Fair Value | USDA Securities:
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Marketable securities	2,522,001	2,294,671
Carrying Amount
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and cash equivalents	910,592	604,381
Loans	8,105,647	6,981,440
Financial derivatives	12,837	10,519
Guarantee and commitment fees receivable	36,664	38,442
Notes payable	21,589,285	19,098,648
Debt securities of consolidated trusts held by third parties	1,292,416	1,616,504
Financial derivatives	37,357	27,042
Guarantee and commitment obligation	35,140	36,700
Carrying Amount | Investment securities
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Marketable securities	3,577,222	3,004,875
Carrying Amount | Farmer Mac Guaranteed Securities
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Marketable securities	8,712,208	8,590,476
Carrying Amount | USDA Securities:
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Marketable securities	$ 2,417,678	$ 2,241,073

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Business Segment Reporting - Core Earnings - Business Segments (Details) - USD ($) $ in Thousands	3 Months Ended			9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Jun. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019
Segment Reporting Information, Profit (Loss) [Abstract]
Net interest income	$ 44,661	$ 40,112		$ 134,321	$ 123,765
Less: reconciling adjustments	0	0		0	0
Net effective spread	0	0		0	0
Guarantee and commitment fees	3,159	3,349		9,495	10,265
Other income/(expense)	(228)	(6,781)		(388)	2,725
Non-interest income/(loss)	2,931	(3,432)		9,107	12,990
Release of/(provision for) losses	(653)	(760)		(4,542)	(1,074)
(Provision for)/release of reserve for losses	(547)	137		(540)	424
Other non-interest expense	(14,560)	(13,595)		(44,882)	(38,695)
Non-interest expense	(15,107)	(13,458)		(45,422)	(38,271)
Core earnings before income taxes	31,832	22,462		93,464	97,410
Income tax (expense)/benefit	(6,340)	(4,629)		(19,516)	(20,362)
Core earnings before preferred stock dividends	25,492	17,833		73,948	77,048
Preferred stock dividends	(5,166)	(3,427)		(12,536)	(10,508)
Loss on retirement of preferred stock	(1,667)	0	$ (1,956)	(1,667)	(1,956)
Segment core earnings/(losses)	18,659	14,406		59,745	64,584
Total assets at carrying value	23,998,837	21,315,234		23,998,837	21,315,234	$ 21,709,374
Total on- and off-balance sheet program assets at principal balance	21,989,288	20,932,359		21,989,288	20,932,359
Corporate
Segment Reporting Information, Profit (Loss) [Abstract]
Net interest income	1,941	2,821		5,025	8,607
Less: reconciling adjustments	431	(164)		74	(900)
Net effective spread	2,372	2,657		5,099	7,707
Guarantee and commitment fees	0	0		0	0
Other income/(expense)	(125)	(110)		(413)	494
Non-interest income/(loss)	(125)	(110)		(413)	494
Release of/(provision for) losses	1	0		(28)	0
(Provision for)/release of reserve for losses	0	0		0	0
Other non-interest expense	(3,938)	(3,837)		(12,171)	(10,903)
Non-interest expense	(3,938)	(3,837)		(12,171)	(10,903)
Core earnings before income taxes	(1,690)	(1,290)		(7,513)	(2,702)
Income tax (expense)/benefit	701	360		1,689	663
Core earnings before preferred stock dividends	(989)	(930)		(5,824)	(2,039)
Preferred stock dividends	(5,166)	(3,427)		(12,536)	(10,508)
Loss on retirement of preferred stock	0				0
Segment core earnings/(losses)	(6,155)	(4,357)		(18,360)	(12,547)
Total assets at carrying value	4,576,909	3,797,690		4,576,909	3,797,690
Total on- and off-balance sheet program assets at principal balance	0	0		0	0
Reconciling Adjustments
Segment Reporting Information, Profit (Loss) [Abstract]
Net interest income	0	0		0	0
Less: reconciling adjustments	(7,141)	(2,349)		(8,113)	1,148
Net effective spread	(7,141)	(2,349)		(8,113)	1,148
Guarantee and commitment fees	(1,500)	(1,859)		(5,003)	(5,638)
Other income/(expense)	(681)	(7,170)		(3,048)	1,050
Non-interest income/(loss)	(2,181)	(9,029)		(8,051)	(4,588)
Release of/(provision for) losses	0	0		0	0
(Provision for)/release of reserve for losses	0	0		0	0
Other non-interest expense	0	0		0	0
Non-interest expense	0	0		0	0
Core earnings before income taxes	(9,322)	(11,378)		(16,164)	(3,440)
Income tax (expense)/benefit	1,957	2,389		3,395	722
Core earnings before preferred stock dividends	(7,365)	(8,989)		(12,769)	(2,718)
Preferred stock dividends	0	0		0	0
Loss on retirement of preferred stock	(1,667)				(1,956)
Segment core earnings/(losses)	(9,032)	(8,989)		(14,436)	(4,674)
Total assets at carrying value	0	0		0	0
Total on- and off-balance sheet program assets at principal balance	0	0		0	0
Farm & Ranch
Segment Reporting Information, Profit (Loss) [Abstract]
Release of/(provision for) losses	300	(760)		412	(1,074)
(Provision for)/release of reserve for losses	(628)	137		(262)	424
Farm & Ranch | Operating Segments
Segment Reporting Information, Profit (Loss) [Abstract]
Net interest income	18,093	15,345		53,768	46,424
Less: reconciling adjustments	(68)	(2,164)		(4,072)	(7,171)
Net effective spread	18,025	13,181		49,696	39,253
Guarantee and commitment fees	4,111	4,523		12,822	13,861
Other income/(expense)	443	390		2,197	1,058
Non-interest income/(loss)	4,554	4,913		15,019	14,919
Release of/(provision for) losses	300	(760)		412	(1,074)
(Provision for)/release of reserve for losses	(628)	137		(262)	424
Other non-interest expense	(5,381)	(5,062)		(16,632)	(14,448)
Non-interest expense	(6,009)	(4,925)		(16,894)	(14,024)
Core earnings before income taxes	16,870	12,409		48,233	39,074
Income tax (expense)/benefit	(3,543)	(2,606)		(10,129)	(8,206)
Core earnings before preferred stock dividends	13,327	9,803		38,104	30,868
Preferred stock dividends	0	0		0	0
Loss on retirement of preferred stock	0				0
Segment core earnings/(losses)	13,327	9,803		38,104	30,868
Total assets at carrying value	5,961,307	4,934,887		5,961,307	4,934,887
Total on- and off-balance sheet program assets at principal balance	8,249,349	7,393,728		8,249,349	7,393,728
USDA Guarantees | Operating Segments
Segment Reporting Information, Profit (Loss) [Abstract]
Net interest income	4,747	4,491		14,691	13,045
Less: reconciling adjustments	1,118	(177)		488	(670)
Net effective spread	5,865	4,314		15,179	12,375
Guarantee and commitment fees	213	250		658	712
Other income/(expense)	135	92		864	92
Non-interest income/(loss)	348	342		1,522	804
Release of/(provision for) losses	0	0		0	0
(Provision for)/release of reserve for losses	0	0		0	0
Other non-interest expense	(1,643)	(1,506)		(5,045)	(4,279)
Non-interest expense	(1,643)	(1,506)		(5,045)	(4,279)
Core earnings before income taxes	4,570	3,150		11,656	8,900
Income tax (expense)/benefit	(960)	(662)		(2,448)	(1,870)
Core earnings before preferred stock dividends	3,610	2,488		9,208	7,030
Preferred stock dividends	0	0		0	0
Loss on retirement of preferred stock	0				0
Segment core earnings/(losses)	3,610	2,488		9,208	7,030
Total assets at carrying value	2,487,687	2,238,558		2,487,687	2,238,558
Total on- and off-balance sheet program assets at principal balance	2,735,128	2,567,763		2,735,128	2,567,763
Rural  Utilities
Segment Reporting Information, Profit (Loss) [Abstract]
Release of/(provision for) losses	(1,182)	0		(4,704)	0
(Provision for)/release of reserve for losses	80	0		(279)	0
Rural  Utilities | Operating Segments
Segment Reporting Information, Profit (Loss) [Abstract]
Net interest income	5,709	2,602		12,778	6,264
Less: reconciling adjustments	1,230	1,900		4,597	5,467
Net effective spread	6,939	4,502		17,375	11,731
Guarantee and commitment fees	328	348		995	1,069
Other income/(expense)	0	17		12	31
Non-interest income/(loss)	328	365		1,007	1,100
Release of/(provision for) losses	(1,182)	0		(4,704)	0
(Provision for)/release of reserve for losses	81	0		(278)	0
Other non-interest expense	(1,438)	(913)		(4,428)	(2,595)
Non-interest expense	(1,357)	(913)		(4,706)	(2,595)
Core earnings before income taxes	4,728	3,954		8,972	10,236
Income tax (expense)/benefit	(993)	(830)		(1,884)	(2,149)
Core earnings before preferred stock dividends	3,735	3,124		7,088	8,087
Preferred stock dividends	0	0		0	0
Loss on retirement of preferred stock	0				0
Segment core earnings/(losses)	3,735	3,124		7,088	8,087
Total assets at carrying value	2,256,011	1,692,835		2,256,011	1,692,835
Total on- and off-balance sheet program assets at principal balance	2,685,309	2,232,602		2,685,309	2,232,602
Institutional Credit | Operating Segments
Segment Reporting Information, Profit (Loss) [Abstract]
Net interest income	14,171	14,853		48,059	49,425
Less: reconciling adjustments	4,430	2,954		7,026	2,126
Net effective spread	18,601	17,807		55,085	51,551
Guarantee and commitment fees	7	87		23	261
Other income/(expense)	0	0		0	0
Non-interest income/(loss)	7	87		23	261
Release of/(provision for) losses	228	0		(222)	0
(Provision for)/release of reserve for losses	0	0		0	0
Other non-interest expense	(2,160)	(2,277)		(6,606)	(6,470)
Non-interest expense	(2,160)	(2,277)		(6,606)	(6,470)
Core earnings before income taxes	16,676	15,617		48,280	45,342
Income tax (expense)/benefit	(3,502)	(3,280)		(10,139)	(9,522)
Core earnings before preferred stock dividends	13,174	12,337		38,141	35,820
Preferred stock dividends	0	0		0	0
Loss on retirement of preferred stock	0				0
Segment core earnings/(losses)	13,174	12,337		38,141	35,820
Total assets at carrying value	8,716,923	8,651,264		8,716,923	8,651,264
Total on- and off-balance sheet program assets at principal balance	$ 8,319,502	$ 8,738,266		$ 8,319,502	$ 8,738,266