Guarantees and Commitments (Tables)

12 Months Ended

Dec. 31, 2021

Commitments and Contingencies Disclosure [Abstract]

Schedule of Guarantor Obligations

The following table presents changes in Farmer Mac's guarantee and commitment obligations in the consolidated balance sheets for the years ended December 31, 2021, 2020, and 2019:

Table 12.1

	For the Years Ended December 31,
	2021		2020		2019
	(in thousands)
Beginning balance, January 1	$	35,535	$	36,700	$	38,683
Additions to the guarantee and commitment obligation(1)	15,648		5,210		4,398
Amortization of the guarantee and commitment obligation	(7,257)		(6,375)		(6,381)
Ending balance, December 31	$	43,926	$	35,535	$	36,700

(1)Represents the fair value of the guarantee and commitment obligation at inception.

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 December 31, 2021 and December 31, 2020, not including offsets provided by any recourse provisions, recoveries from third parties, or collateral for the underlying loans:

Table 12.2

Outstanding Balance of Off-Balance Sheet Farmer Mac Guaranteed Securities
	As of December 31, 2021		As of December 31, 2020
	(in thousands)
Agricultural Finance
Farmer Mac Guaranteed Securities	$	578,358	$	378,610
Rural Infrastructure Finance
Farmer Mac Guaranteed Securities	2,755		4,412
Total off-balance sheet Farmer Mac Guaranteed Securities	$	581,113	$	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 12.4

	As of December 31, 2021		As of December 31, 2020
	(dollars in thousands)
Guarantee and commitment obligation	$	7,355	$	1,625
Weighted average remaining maturity:
Farmer Mac Guaranteed Securities	21.7 years		9.5 years
AgVantage Securities	3.0 years		4.0 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 12.3

	For the Years Ended December 31,
	2021		2020		2019
	(in thousands)
Proceeds from new securitizations	$	404,568	$	165,054	$	321,414
Guarantee fees received	1,029		1,365		1,413
Servicing fees received	199		—		—
Interest-only Farmer Mac Guaranteed Securities income	47		—		—

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 as of December 31, 2021 and 2020:

Table 12.5

	As of December 31, 2021		As of December 31, 2020
	(dollars in thousands)
Guarantee and commitment obligation(1)	$	36,571	$	33,909
Maximum principal amount	3,191,061		2,881,856
Weighted-average remaining maturity	15.5 years		15.3 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 December 31, 2021 and December 31, 2020:

Table 12.6

	December 31, 2021		December 31, 2020
	Reserve for Losses		Reserve for Losses
	(in thousands)
Agricultural Finance:
LTSPCs and Farmer Mac Guaranteed Securities	$	1,068	$	2,097
Rural Infrastructure Finance
LTSPCs	882		1,180
Total	$	1,950	$	3,277

The following is a summary of the changes in the reserve for losses for each year in the three-year period ended December 31, 2021:

Table 12.7

	Agricultural Finance		Rural Infrastructure Finance
	Reserve for Losses		Reserve for Losses
	(in thousands)
Balance as of December 31, 2018(1)	$	2,167	$	—
Release of losses	(3)		—
Balance as of December 31, 2019(1)	$	2,164	$	—
Cumulative effect adjustment from adoption of current expected credit loss standard	(148)		1,011
Adjusted Beginning Balance	$	2,016	$	1,011
Provision for losses	81		169
Balance as of December 31, 2020(2)	$	2,097	$	1,180
Release of losses	(1,029)		(298)
Balance as of December 31, 2021(2)	$	1,068	$	882

(1)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 Agricultural Finance Farmer Mac Guaranteed Securities.

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

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 December 31, 2021 and December 31, 2020:

Table 8.4

	As of December 31, 2021
	Accruing
	Current		30-59 Days		60-89 Days		90 Days and Greater(2)		Total Past Due		Nonaccrual loans(3)(4)		Total Loans
	(in thousands)
Loans(1):
Agricultural Finance mortgage loans	$	6,715,070	$	4,548	$	568	$	—	$	5,116	$	126,807	$	6,846,993
Rural Infrastructure Finance loans	2,389,136		—		—		—		—		—		2,389,136
Total	$	9,104,206	$	4,548	$	568	$	—	$	5,116	$	126,807	$	9,236,129

(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 $31.0 million of nonaccrual loans for which there was no associated allowance. During the year ended December 31, 2021, Farmer Mac received $5.0 million, in interest on nonaccrual loans.

	As of December 31, 2020
	Accruing
	Current		30-59 Days		60-89 Days		90 Days and Greater(2)		Total Past Due		Nonaccrual loans(3)(4)		Total Loans
	(in thousands)
Loans(1):
Agricultural Finance mortgage loans	$	6,055,154	$	4,582	$	632	$	1,072	$	6,286	$	114,998	$	6,176,438
Rural Infrastructure Finance loans	2,260,412		—		—		—		—		—		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 Agricultural Finance and Rural Utilities loans underlying LTSPCs and Farmer Mac Guaranteed Securities as of December 31, 2021 and December 31, 2020:

Table 12.8

	As of December 31, 2021
	Current		30-59 Days		60-89 Days		90 Days and Greater(1)		Total Past Due		Total Loans
	(in thousands)
Agricultural Finance:
LTSPCs and Farmer Mac Guaranteed Securities	$	2,953,091	$	8,068	$	—	$	3,597	$	11,665	$	2,964,756
Rural Infrastructure:
LTSPCs	$	556,837	$	—	$	—	$	—	$	—	$	556,837

(1)Includes loans underlying off-balance sheet Agricultural Finance 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
	Current		30-59 Days		60-89 Days		90 Days and Greater(1)		Total Past Due		Total Loans
	(in thousands)
Agricultural Finance:
LTSPCs and Farmer Mac Guaranteed Securities	$	2,389,777	$	2,189	$	1,344	$	11,433	$	14,966	$	2,404,743
Rural Infrastructure:
LTSPCs	$	556,425	$	—	$	—	$	—	$	—	$	556,425

(1)Includes loans underlying off-balance sheet Agricultural Finance 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 Infrastructure loans held as of December 31, 2021 and December 31, 2020, by year of origination:

Table 8.5

	As of December 31, 2021
	Year of Origination:
	2021		2020		2019		2018		2017		Prior		Revolving Loans - Amortized Cost Basis		Total
	(in thousands)
Agricultural Finance mortgage loans (1):
Internally Assigned Risk Rating:
Acceptable	$	2,138,060	$	1,541,509	$	540,139	$	324,917	$	303,852	$	1,004,709	$	545,370	$	6,398,556
Special mention(2)	84,795		50,057		51,200		48,078		9,132		14,646		4,771		262,679
Substandard(3)	1,654		4,997		26,237		27,109		38,703		75,780		11,278		185,758
Total	$	2,224,509	$	1,596,563	$	617,576	$	400,104	$	351,687	$	1,095,135	$	561,419	$	6,846,993
For the Year Ended:
Current period charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Current period recoveries	—		—		—		—		(1,054)		—		—		(1,054)
Current period Agricultural Finance recoveries	$	—	$	—	$	—	$	—	$	(1,054)	$	—	$	—	$	(1,054)

(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, 2021
	Year of Origination:
	2021		2020		2019		2018		2017		Prior		Revolving Loans - Amortized Cost Basis		Total
	(in thousands)
Rural Infrastructure Finance loans(1):
Internally Assigned Risk Rating:
Acceptable	$	242,570	$	612,366	$	774,941	$	8,100	$	86,878	$	628,903	$	12,578	$	2,366,336
Special mention(2)	—		—		—		—		—		—		—		—
Substandard(3)	—		22,800		—		—		—		—		—		22,800
Total	$	242,570	$	635,166	$	774,941	$	8,100	$	86,878	$	628,903	$	12,578	$	2,389,136
For the Year Ended
Current period charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Current period recoveries	—		—		—		—		—		—		—		—
Current period Rural Infrastructure 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:
	2020		2019		2018		2017		2016		Prior		Revolving Loans - Amortized Cost Basis		Total
	(in thousands)
Agricultural Finance mortgage loans (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 Year Ended:
Current period charge-offs	$	—	$	—	$	—	$	5,365	$	—	$	394	$	—	$	5,759
Current period recoveries	—		—		—		—		—		—		—		—
Current period Agricultural Finance net charge-offs	$	—	$	—	$	—	$	5,365	$	—	$	394	$	—	$	5,759

(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:
	2020		2019		2018		2017		2016		Prior		Revolving Loans - Amortized Cost Basis		Total
	(in thousands)
Rural Infrastructure Finance loans(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 Year Ended:
Current period charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Current period recoveries	—		—		—		—		—		—		—		—
Current period Rural Infrastructure 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 Agricultural Finance and Rural Utilities loans underlying LTSPCs and Farmer Mac Guaranteed Securities as of December 31, 2021 and December 31, 2020, by year of origination:

Table 12.9

	As of December 31, 2021
	Year of Origination:
	2021		2020		2019		2018		2017		Prior		Revolving Loans - Amortized Cost Basis		Total
	(in thousands)
Agricultural Finance LTSPCs and Farmer Mac Guaranteed Securities:
Internally Assigned Risk Rating:
Acceptable	$	376,027	$	537,521	$	244,365	$	188,452	$	235,865	$	1,013,937	$	252,039	$	2,848,206
Special mention(1)	—		5,270		—		6,808		3,154		38,042		2,354		55,628
Substandard(2)	—		1,307		724		5,038		12,793		37,326		3,734		60,922
Total	$	376,027	$	544,098	$	245,089	$	200,298	$	251,812	$	1,089,305	$	258,127	$	2,964,756
For the Year Ended:
Current period charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Current period recoveries	—		—		—		—		—		—		—		—
Current period Agricultural Finance 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, 2021
	Year of Origination:
	2021		2020		20	2019		2018		2017		Prior		Revolving Loans - Amortized Cost Basis		Total
	(in thousands)
Rural Infrastructure Finance LTSPCs:
Internally Assigned Risk Rating:
Acceptable	$	—	$	—		$	—	$	—	$	—	$	499,594	$	57,243	$	556,837
Special mention(1)	—		—			—		—		—		—		—		—
Substandard(2)	—		—			—		—		—		—		—		—
Total	$	—	$	—		$	—	$	—	$	—	$	499,594	$	57,243	$	556,837
For the Year Ended:
Current period charge-offs	$	—	$	—		$	—	$	—	$	—	$	—	$	—	$	—
Current period recoveries	—		—			—		—		—		—		—		—
Current period Rural Infrastructure 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:
	2020		2019		2018		2017		2016		Prior		Revolving Loans - Amortized Cost Basis		Total
	(in thousands)
Agricultural Finance 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 Year Ended:
Current period charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Current period recoveries	—		—		—		—		—		—		—		—
Current period Agricultural Finance 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:
	2020		2019		2018		2017		2016		Prior		Revolving Loans - Amortized Cost Basis		Total
	(in thousands)
Rural Infrastructure Finance 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 Year Ended:
Current period charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Current period recoveries	—		—		—		—		—		—		—		—
Current period Rural Infrastructure 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.