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Guarantees and Commitments (Tables)
 9 Months Ended
Sep. 30, 2021
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, 2021 and December 31, 2020, 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, 2021As of December 31, 2020
  (in thousands)
Farm & Ranch:  
Farmer Mac Guaranteed Securities$60,349 $79,312 
USDA Guarantees:
Farmer Mac Guaranteed USDA Securities259,893 299,298 
Institutional Credit:  
AgVantage Securities4,412 4,412 
Total off-balance sheet Farmer Mac Guaranteed Securities$324,654 $383,022 
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, 2021As of December 31, 2020
(dollars in thousands)
Guarantee and commitment obligation$1,257 $1,625 
Weighted average remaining maturity:
  Farmer Mac Guaranteed Securities8.9 years9.5 years
  AgVantage Securities3.2 years4.0 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, 2021September 30, 2020
  (in thousands)
Proceeds from new securitizations$84,131 $64,612 
Guarantee fees received848 1,136 
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 Long-Term Standby Purchase Commitments ("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, 2021As of December 31, 2020
(dollars in thousands)
Guarantee and commitment obligation(1)
$36,270 $33,909 
Maximum principal amount3,181,516 2,881,856 
Weighted-average remaining maturity15.4 years15.3 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, 2021 and December 31, 2020:

Table 6.5
September 30, 2021December 31, 2020
Reserve for LossesReserve for Losses
(in thousands)
Farm & Ranch:
LTSPCs and Farmer Mac Guaranteed Securities$1,103 $2,097 
Rural Utilities
LTSPCs897 1,180 
Total$2,000 $3,277 


The following is a summary of the changes in the reserve for losses for the three and nine month period ended September 30, 2021 and 2020:

Table 6.6
For the Three Months EndedFor the Nine Months Ended
September 30, 2021September 30, 2020September 30, 2021September 30, 2020
Reserve for LossesReserve for LossesReserve for LossesReserve for Losses
(in thousands)
Farm & Ranch:
Beginning Balance$1,194 $1,650 $2,097 $2,164 
Cumulative effect adjustment from adoption of current expected credit loss standard— — — (148)
Adjusted Beginning Balance1,194 1,650 2,097 2,016 
(Release of)/provision for losses(91)628 (994)262 
Charge-offs— — — — 
Ending Balance$1,103 $2,278 $1,103 $2,278 
Rural Utilities:
Beginning Balance$917 $1,370 $1,180 $— 
Cumulative effect adjustment from adoption of current expected credit loss standard— — — 1,011 
Adjusted Beginning Balance917 1,370 1,180 1,011 
(Release of)/provision for losses(20)(80)(283)279 
Charge-offs— — — — 
Ending Balance$897 $1,290 $897 $1,290 
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, 2021 and December 31, 2020:

Table 5.4
As of September 30, 2021
Accruing
Current30-59 Days60-89 Days
90 Days and Greater(2)
Total Past Due
Nonaccrual loans(3)(4)
Total Loans
(in thousands)
Loans(1):
Farm & Ranch$6,633,343 $2,345 $482 $3,655 $6,482 $137,924 $6,777,749 
Rural Utilities2,243,172 — — — — — 2,243,172 
Total $8,876,515 $2,345 $482 $3,655 $6,482 $137,924 $9,020,921 
(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 $44.8 million of nonaccrual loans for which there was no associated allowance. During the three and nine months ended September 30, 2021, Farmer Mac received $1.4 million and $4.4 million, respectively, in interest on nonaccrual loans.
As of December 31, 2020
Accruing
Current30-59 Days60-89 Days
90 Days and Greater(2)
Total Past Due
Nonaccrual loans(3)(4)
Total Loans
(in thousands)
Loans(1):
Farm & Ranch$6,055,154 $4,582 $632 $1,072 $6,286 $114,998 $6,176,438 
Rural Utilities2,260,412 — — — — — 2,260,412 
Total $8,315,566 $4,582 $632 $1,072 $6,286 $114,998 $8,436,850 
(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 $44.2 million of nonaccrual loans for which there was no associated allowance. During the year ended December 31, 2020, Farmer Mac received $4.4 million in interest on nonaccrual loans.
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, 2021 and December 31, 2020:

Table 6.7
As of September 30, 2021
Current30-59 Days60-89 Days
90 Days and Greater(1)
Total Past DueTotal Loans
(in thousands)
Farm and Ranch:
LTSPCs and Farmer Mac Guaranteed Securities$2,659,372 $6,026 $45 $2,167 $8,238 $2,667,610 
Rural Utilities:
LTSPCs$574,255 $— $— $— $— $574,255 
(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.

As of December 31, 2020
Current30-59 Days60-89 Days
90 Days and Greater(1)
Total Past DueTotal Loans
(in thousands)
Farm and Ranch:
LTSPCs and Farmer Mac Guaranteed Securities$2,389,777 $2,189 $1,344 $11,433 $14,966 $2,404,743 
Rural Utilities:
LTSPCs$556,425 $— $— $— $— $556,425 
(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.
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, 2021 and December 31, 2020, by year of origination:

Table 5.5
As of September 30, 2021
Year of Origination:
20212020201920182017PriorRevolving Loans - Amortized Cost BasisTotal
(in thousands)
Farm & Ranch(1):
Internally Assigned Risk Rating:
Acceptable$1,570,766 $1,798,703 $660,485 $382,027 $318,043 $1,054,024 $531,063 $6,315,111 
Special mention(2)
83,224 88,848 36,050 13,828 6,962 18,998 10,531 258,441 
Substandard(3)
607 5,305 26,892 27,730 50,478 81,240 11,945 204,197 
Total$1,654,597 $1,892,856 $723,427 $423,585 $375,483 $1,154,262 $553,539 $6,777,749 
For the Three Months Ended September 30, 2021:
Current period charge-offs$— $— $— $— $— $— $— $— 
Current period recoveries— — — — — — — — 
Current period Farm & Ranch net charge-offs$— $— $— $— $— $— $— $— 
For the Nine Months Ended September 30, 2021:
Current period charge-offs$— $— $— $— $— $— $— $— 
Current period recoveries— — — — — — — — 
Current period Farm & Ranch net charge-offs$— $— $— $— $— $— $— $— 
(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.

As of September 30, 2021
Year of Origination:
20212020201920182017PriorRevolving Loans - Amortized Cost BasisTotal
(in thousands)
Rural Utilities(1):
Internally Assigned Risk Rating:
Acceptable$60,793 $619,772 $784,153 $8,100 $89,263 $628,903 $28,988 $2,219,972 
Special mention(2)
— — — — — — — — 
Substandard(3)
— 23,200 — — — — — 23,200 
Total $60,793 $642,972 $784,153 $8,100 $89,263 $628,903 $28,988 $2,243,172 
For the Three Months Ended September 30, 2021:
Current period charge-offs$— $— $— $— $— $— $— $— 
Current period recoveries— — — — — — — — 
Current period Rural Utilities net charge-offs$— $— $— $— $— $— $— $— 
For the Nine Months Ended September 30, 2021:
Current period charge-offs$— $— $— $— $— $— $— $— 
Current period recoveries— — — — — — — — 
Current period Farm & Ranch net charge-offs$— $— $— $— $— $— $— $— 
(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.
As of December 31, 2020
Year of Origination:
20202019201820172016PriorRevolving Loans - Amortized Cost BasisTotal
(in thousands)
Farm & Ranch(1):
Internally Assigned Risk Rating:
Acceptable$1,947,618 $774,315 $484,345 $500,768 $465,277 $1,068,693 $535,742 $5,776,758 
Special mention(2)
70,171 79,744 18,317 8,530 13,111 21,328 7,656 218,857 
Substandard(3)
3,400 5,821 21,879 52,709 37,173 50,582 9,259 180,823 
Total$2,021,189 $859,880 $524,541 $562,007 $515,561 $1,140,603 $552,657 $6,176,438 
For the Three Months Ended September 30, 2020:
Current period charge-offs$— $— $— $— $— $— $— $— 
Current period recoveries— — — — — — — — 
Current period Farm & Ranch net charge-offs$— $— $— $— $— $— $— $— 
For the Nine Months Ended September 30, 2020:
Current period charge-offs$— $— $— $— $— $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 December 31, 2020
Year of Origination:
20202019201820172016PriorRevolving Loans - Amortized Cost BasisTotal
(in thousands)
Rural Utilities(1):
Internally Assigned Risk Rating:
Acceptable$667,489 $809,921 $8,260 $89,842 $31,275 $641,145 $12,480 $2,260,412 
Special mention(2)
— — — — — — — — 
Substandard(3)
— — — — — — — — 
Total $667,489 $809,921 $8,260 $89,842 $31,275 $641,145 $12,480 $2,260,412 
For the Three Months Ended September 30, 2020:
Current period charge-offs$— $— $— $— $— $— $— $— 
Current period recoveries— — — — — — — — 
Current period Rural Utilities net charge-offs$— $— $— $— $— $— $— $— 
For the Nine Months Ended September 30, 2020:
Current period charge-offs$— $— $— $— $— $— $— $— 
Current period recoveries— — — — — — — — 
Current period Farm & Ranch net charge-offs$— $— $— $— $— $— $— $— 
(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 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, 2021 and December 31, 2020, by year of origination:
Table 6.8
As of September 30, 2021
Year of Origination:
20212020201920182017PriorRevolving Loans - Amortized Cost BasisTotal
(in thousands)
Farm & Ranch LTSPCs and Farmer Mac Guaranteed Securities:
Internally Assigned Risk Rating:
Acceptable$306,664 $309,938 $206,652 $189,643 $225,421 $1,054,049 $228,509 $2,520,876 
Special mention(1)
— 3,915 — 1,382 3,190 58,112 6,058 72,657 
Substandard(2)
— 220 730 10,496 12,942 45,900 3,789 74,077 
Total$306,664 $314,073 $207,382 $201,521 $241,553 $1,158,061 $238,356 $2,667,610 
For the Three Months Ended September 30, 2021:
Current period charge-offs$— $— $— $— $— $— $— $— 
Current period recoveries— — — — — — — — 
Current period Farm & Ranch net charge-offs$— $— $— $— $— $— $— $— 
For the Nine Months Ended September 30, 2021:
Current period charge-offs$— $— $— $— $— $— $— $— 
Current period recoveries— — — — — — — — 
Current period Farm & Ranch net charge-offs$— $— $— $— $— $— $— $— 
(1)Assets in the "Special mention" category generally have potential weaknesses due to performance issues but are currently considered to be adequately secured.  
(2)Substandard assets have a well-defined weakness or weaknesses and there is a distinct possibility that some loss will be sustained if deficiencies are not corrected.
As of September 30, 2021
Year of Origination:
2021202020201920182017PriorRevolving Loans - Amortized Cost BasisTotal
(in thousands)
Rural Utilities LTSPCs:
Internally Assigned Risk Rating:
Acceptable$— $— $— $— $— $511,743 $62,512 $574,255 
Special mention(1)
— — — — — — — — 
Substandard(2)
— — — — — — — — 
Total$— $— $— $— $— $511,743 $62,512 $574,255 
For the Three Months Ended September 30, 2021:
Current period charge-offs$— $— $— $— $— $— $— $— 
Current period recoveries— — — — — — — — 
Current period Rural Utilities net charge-offs$— $— $— $— $— $— $— $— 
For the Nine Months Ended September 30, 2021:
Current period charge-offs$— $— $— $— $— $— $— $— 
Current period recoveries— — — — — — — — 
Current period Farm & Ranch net charge-offs$— $— $— $— $— $— $— $— 
(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 December 31, 2020
Year of Origination:
20202019201820172016PriorRevolving Loans - Amortized Cost BasisTotal
(in thousands)
Farm & Ranch LTSPCs and Farmer Mac Guaranteed Securities:
Internally Assigned Risk Rating:
Acceptable$178,213 $213,620 $183,948 $237,042 $207,296 $969,860 $211,620 $2,201,599 
Special mention(1)
3,920 1,742 1,502 5,603 19,644 50,004 10,058 92,473 
Substandard(2)
264 10,250 12,611 14,578 7,841 60,602 4,525 110,671 
Total$182,397 $225,612 $198,061 $257,223 $234,781 $1,080,466 $226,203 $2,404,743 
For the Three Months Ended September 30, 2020:
Current period charge-offs$— $— $— $— $— $— $— $— 
Current period recoveries— — — — — — — — 
Current period Farm & Ranch net charge-offs$— $— $— $— $— $— $— $— 
For the Nine Months Ended September 30, 2020:
Current period charge-offs$— $— $— $— $— $— $— $— 
Current period recoveries— — — — — — — — 
Current period Farm & Ranch net charge-offs$— $— $— $— $— $— $— $— 
(1)Assets in the "Special mention" category generally have potential weaknesses due to performance issues but are currently considered to be adequately secured.  
(2)Substandard assets have a well-defined weakness or weaknesses and there is a distinct possibility that some loss will be sustained if deficiencies are not corrected.
As of December 31, 2020
Year of Origination:
20202019201820172016PriorRevolving Loans - Amortized Cost BasisTotal
(in thousands)
Rural Utilities LTSPCs:
Internally Assigned Risk Rating:
Acceptable$— $— $— $— $— $549,405 $7,020 $556,425 
Special mention(1)
— — — — — — — — 
Substandard(2)
— — — — — — — — 
Total$— $— $— $— $— $549,405 $7,020 $556,425 
For the Three Months Ended September 30, 2020:
Current period charge-offs$— $— $— $— $— $— $— $— 
Current period recoveries— — — — — — — — 
Current period Rural Utilities net charge-offs$— $— $— $— $— $— $— $— 
For the Nine Months Ended September 30, 2020:
Current period charge-offs$— $— $— $— $— $— $— $— 
Current period recoveries— — — — — — — — 
Current period Farm & Ranch net charge-offs$— $— $— $— $— $— $— $— 
(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.