Loans (Tables)

3 Months Ended

Mar. 31, 2022

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 March 31, 2022 and December 31, 2021:

Table 5.1

	As of March 31, 2022						As of December 31, 2021
	Unsecuritized		In Consolidated Trusts		Total		Unsecuritized		In Consolidated Trusts		Total
	(in thousands)
Agricultural Finance mortgage loans	$	6,044,029	$	888,200	$	6,932,229	$	5,898,370	$	948,623	$	6,846,993
Rural Infrastructure Finance loans	2,551,851		—		2,551,851		2,389,136		—		2,389,136
Total unpaid principal balance(1)	8,595,880		888,200		9,484,080		8,287,506		948,623		9,236,129
Unamortized premiums, discounts, fair value hedge basis adjustment, and other cost basis adjustments	(105,570)		—		(105,570)		26,590		—		26,590
Total loans	8,490,310		888,200		9,378,510		8,314,096		948,623		9,262,719
Allowance for losses	(13,110)		(460)		(13,570)		(13,477)		(564)		(14,041)
Total loans, net of allowance	$	8,477,200	$	887,740	$	9,364,940	$	8,300,619	$	948,059	$	9,248,678

(1)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 March 31, 2022 and December 31, 2021:

Table 5.2

	March 31, 2022		December 31, 2021
	Allowance for Losses		Allowance for Losses
	(in thousands)
Loans:
Agricultural Finance mortgage loans	$	3,948	$	3,442
Rural Infrastructure Finance loans	9,622		10,599
Total	$	13,570	$	14,041

The following is a summary of the changes in the allowance for losses for the three month period ended March 31, 2022 and 2021:

Table 5.3

	For the Three Months Ended
	March 31, 2022		March 31, 2021
	Allowance for Losses		Allowance for Losses
	(in thousands)
Agricultural Finance mortgage loans
Beginning Balance	$	3,442	$	3,745
Provision for/(release of) losses	590		(27)
Charge-offs	(84)		—
Ending Balance(1)	$	3,948	$	3,718
Rural Infrastructure Finance loans
Beginning Balance	$	10,599	$	10,087
(Release of)/provision for losses	(977)		1,002
Charge-offs	—		—
Ending Balance(2)	$	9,622	$	11,089

(1)As of both March 31, 2022 and 2021, allowance for losses for Agricultural Finance mortgage loans includes no allowance for collateral dependent assets secured by agricultural real estate.

(2)As of both March 31, 2022 and 2021, allowance for losses for Rural Infrastructure Finance loans 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 March 31, 2022 and December 31, 2021:

Table 5.4

	As of March 31, 2022
	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	$	6,797,744	$	4,624	$	639	$	8,517	$	13,780	$	120,705	$	6,932,229
Rural Infrastructure Finance loans	2,551,851		—		—		—		—		—		2,551,851
Total	$	9,349,595	$	4,624	$	639	$	8,517	$	13,780	$	120,705	$	9,484,080

(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 $34.9 million of nonaccrual loans for which there was no associated allowance. During the three months ended March 31, 2022, Farmer Mac received $1.8 million in interest on nonaccrual loans.

	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.

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 March 31, 2022 and December 31, 2021:

Table 6.7

	As of March 31, 2022
	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	$	2,942,666	$	1,578	$	1,618	$	1,887	$	5,083	$	2,947,749
Rural Infrastructure:
LTSPCs	$	562,568	$	—	$	—	$	—	$	—	$	562,568

(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, 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.

Schedule of Financing Receivable Credit Quality Indicators

The following tables present credit quality indicators related to Agricultural Finance mortgage loans and Rural Infrastructure Finance loans held as of March 31, 2022 and December 31, 2021, by year of origination:

Table 5.5

	As of March 31, 2022
	Year of Origination:
	2022		2021		2020		2019		2018		Prior		Revolving Loans - Amortized Cost Basis		Total
	(in thousands)
Agricultural Finance mortgage loans (1):
Internally Assigned Risk Rating:
Acceptable	$	400,124	$	2,080,013	$	1,473,300	$	504,767	$	306,332	$	1,179,889	$	512,678	$	6,457,103
Special mention(2)	7,009		123,893		38,473		43,697		45,722		25,750		9,279		293,823
Substandard(3)	—		4,052		26,051		22,734		20,432		89,650		18,384		181,303
Total	$	407,133	$	2,207,958	$	1,537,824	$	571,198	$	372,486	$	1,295,289	$	540,341	$	6,932,229
For the Three Months Ended:
Current period charge-offs	$	—	$	—	$	—	$	—	$	—	$	(84)	$	—	$	(84)
Current period recoveries	—		—		—		—		—		—		—		—
Current period Agricultural Finance net charge-offs	$	—	$	—	$	—	$	—	$	—	$	(84)	$	—	$	(84)

(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 March 31, 2022
	Year of Origination:
	2022		2021		2020		2019		2018		Prior		Revolving Loans - Amortized Cost Basis		Total
	(in thousands)
Rural Infrastructure Finance loans(1):
Internally Assigned Risk Rating:
Acceptable	$	175,976	$	230,729	$	643,667	$	766,559	$	8,017	$	695,266	$	31,637	$	2,551,851
Special mention(2)	—		—		—		—		—		—		—		—
Substandard(3)	—		—		—		—		—		—		—		—
Total	$	175,976	$	230,729	$	643,667	$	766,559	$	8,017	$	695,266	$	31,637	$	2,551,851
For the Three Months 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, 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 Three Months Ended March 31, 2021:
Current period charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Current period recoveries	—		—		—		—		—		—		—		—
Current period Agricultural Finance 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, 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 Three Months Ended March 31, 2021:
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 March 31, 2022 and December 31, 2021, by year of origination:

Table 6.8

	As of March 31, 2022
	Year of Origination:
	2022		2021		2020		2019		2018		Prior		Revolving Loans - Amortized Cost Basis		Total
	(in thousands)
Agricultural Finance LTSPCs and Farmer Mac Guaranteed Securities:
Internally Assigned Risk Rating:
Acceptable	$	39,991	$	425,698	$	504,636	$	245,154	$	182,019	$	1,192,160	$	264,675	$	2,854,333
Special mention(1)	—		—		2,470		—		6,663		47,438		2,329		58,900
Substandard(2)	—		—		198		725		4,877		25,038		3,678		34,516
Total	$	39,991	$	425,698	$	507,304	$	245,879	$	193,559	$	1,264,636	$	270,682	$	2,947,749
For the Three Months 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 March 31, 2022
	Year of Origination:
	2022		2021		2020		2019		2018		Prior		Revolving Loans - Amortized Cost Basis		Total
	(in thousands)
Rural Infrastructure Finance LTSPCs:
Internally Assigned Risk Rating:
Acceptable	$	—	$	—	$	—	$	—	$	—	$	489,384	$	73,184	$	562,568
Special mention(1)	—		—		—		—		—		—		—		—
Substandard(2)	—		—		—		—		—		—		—		—
Total	$	—	$	—	$	—	$	—	$	—	$	489,384	$	73,184	$	562,568
For the Three Months 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, 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 Three Months Ended March 31, 2021:
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		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 Three Months Ended March 31, 2021:
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.