10-Q

As filed with the Securities and Exchange Commission on November 6, 2023

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, 2023

or

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _____ to _____.

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
4.875% Non-Cumulative Preferred Stock, Series G	AGM.PRG	New York Stock Exchange

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

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 October 31, 2023, the registrant had outstanding 1,030,780 shares of Class A voting common stock, 500,301 shares of Class B voting common stock, and 9,309,771 shares of Class C non-voting common stock.

1

Table of Contents

PART I		3
	Financial Statements	3
	Consolidated Balance Sheets	3
	Consolidated Statements of Operations	4
	Consolidated Statements of Comprehensive Income	5
	Consolidated Statements of Equity	6
	Consolidated Statements of Cash Flows	8
	Notes to Consolidated Financial Statements	9
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	61
	Forward-Looking Statements	61
	Overview	63
	Use of Non-GAAP Measures	67
	Results of Operations	69
	Outlook	87
	Balance Sheet Review	93
	Risk Management	93
	Liquidity and Capital Resources	110
	Other Matters	112
	Supplemental Information	112
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	116
Item 4.	Controls and Procedures	117
PART II		118
Item 1.	Legal Proceedings	118
Item 1A.	Risk Factors	118
Item 2.	Item 2. Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities	118
Item 3.	Defaults Upon Senior Securities	118
Item 4.	Mine Safety Disclosures	119
Item 5.	Other Information	119
Item 6.	Exhibits	120
Signatures		121

2

PART I

Item 1.Financial Statements

FEDERAL AGRICULTURAL MORTGAGE CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(unaudited)

	As of
	September 30, 2023		December 31, 2022
	(in thousands)
Assets:
Cash and cash equivalents	$	782,318	$	861,002
Investment securities:
Available-for-sale, at fair value (amortized cost of $5,114,476 and $4,769,426, respectively)	4,873,414		4,579,564
Held-to-maturity, at amortized cost	45,032		45,032
Other investments	5,807		3,672
Total Investment Securities	4,924,253		4,628,268
Farmer Mac Guaranteed Securities:
Available-for-sale, at fair value (amortized cost of $5,536,437 and $8,019,495, respectively)	5,058,697		7,607,226
Held-to-maturity, at amortized cost	4,157,414		1,021,154
Total Farmer Mac Guaranteed Securities	9,216,111		8,628,380
USDA Securities:
Trading, at fair value	1,302		1,767
Held-to-maturity, at amortized cost	2,322,355		2,409,834
Total USDA Securities	2,323,657		2,411,601
Loans:
Loans held for investment, at amortized cost	9,130,933		9,008,979
Loans held for investment in consolidated trusts, at amortized cost	1,422,854		1,211,576
Allowance for losses	(16,614)		(15,089)
Total loans, net of allowance	10,537,173		10,205,466
Financial derivatives, at fair value	28,855		37,409
Accrued interest receivable (includes $10,666 and $12,514, respectively, related to consolidated trusts)	230,523		229,061
Guarantee and commitment fees receivable	49,809		47,151
Deferred tax asset, net	4,711		18,004
Prepaid expenses and other assets	213,971		266,768
Total Assets	$	28,311,381	$	27,333,110
Liabilities and Equity:
Liabilities:
Notes payable	$	25,123,545	$	24,469,113
Debt securities of consolidated trusts held by third parties	1,334,014		1,181,948
Financial derivatives, at fair value	188,362		175,326
Accrued interest payable (includes $6,568 and $8,081, respectively, related to consolidated trusts)	172,150		117,887
Guarantee and commitment obligation	47,607		46,582
Accounts payable and accrued expenses	58,776		68,863
Reserve for losses	1,660		1,433
Total Liabilities	26,926,114		26,061,152
Commitments and Contingencies (Note 6)
Equity:
Preferred stock:
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		77,003
Series F, par value $25 per share, 4,800,000 shares authorized, issued and outstanding	116,160		116,160
Series G, par value $25 per share, 5,000,000 shares authorized, issued and outstanding	121,327		121,327
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, 9,309,351 shares and 9,270,265 shares outstanding, respectively	9,309		9,270
Additional paid-in capital	130,921		128,939
Accumulated other comprehensive loss, net of tax	(35,839)		(50,843)
Retained earnings	794,814		698,530
Total Equity	1,385,267		1,271,958
Total Liabilities and Equity	$	28,311,381	$	27,333,110

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

3

FEDERAL AGRICULTURAL MORTGAGE CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited)

	For the Three Months Ended				For the Nine Months Ended
	September 30, 2023		September 30, 2022		September 30, 2023		September 30, 2022
	(in thousands, except per share amounts)
Interest income:
Investments and cash equivalents	$	79,947	$	21,581	$	209,429	$	38,497
Farmer Mac Guaranteed Securities and USDA Securities	161,351		74,695		442,649		169,231
Loans	140,513		97,514		388,837		241,393
Total interest income	381,811		193,790		1,040,915		449,121
Total interest expense	294,168		125,937		795,537		251,816
Net interest income	87,643		67,853		245,378		197,305
Release of/(provision for) losses	136		(617)		(1,484)		699
Net interest income after release of/(provision for) losses	87,779		67,236		243,894		198,004
Non-interest income/(expense):
Guarantee and commitment fees	5,520		2,643		12,942		9,551
Gains on financial derivatives	2,671		772		4,763		21,551
(Losses)/gains on trading securities	(2)		(41)		14		(75)
Release of/(provision for) reserve for losses	45		167		(227)		440
Other income	1,271		651		3,239		1,805
Non-interest income	9,505		4,192		20,731		33,272
Operating expenses:
Compensation and employee benefits	14,103		11,648		43,391		36,661
General and administrative	9,100		6,919		26,047		21,717
Regulatory fees	831		812		2,497		2,437
Operating expenses	24,034		19,379		71,935		60,815
Income before income taxes	73,250		52,049		192,690		170,461
Income tax expense	15,113		10,631		40,306		35,735
Net income	58,137		41,418		152,384		134,726
Preferred stock dividends	(6,792)		(6,791)		(20,374)		(20,374)
Net income attributable to common stockholders	$	51,345	$	34,627	$	132,010	$	114,352
Earnings per common share:
Basic earnings per common share	$	4.74	$	3.21	$	12.20	$	10.61
Diluted earnings per common share	$	4.69	$	3.18	$	12.08	$	10.51

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

4

FEDERAL AGRICULTURAL MORTGAGE CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(unaudited)

	For the Three Months Ended				For the Nine Months Ended
	September 30, 2023		September 30, 2022		September 30, 2023		September 30, 2022
	(in thousands
Net income	$	58,137	$	41,418	$	152,384	$	134,726
Other comprehensive income/(loss):
Net unrealized gains/(losses) on available-for-sale securities	22,076		(41,827)		46,068		(158,273)
Net changes in held-to-maturity securities	(31,525)		(622)		(32,628)		220
Net unrealized gains on cash flow hedges	7,566		24,596		5,553		72,684
Other comprehensive (loss)/income before tax	(1,883)		(17,853)		18,993		(85,369)
Income tax benefit/(expense) related to other comprehensive (loss)/income	395		3,748		(3,989)		17,927
Other comprehensive (loss)/income net of tax	(1,488)		(14,105)		15,004		(67,442)
Comprehensive income	$	56,649	$	27,313	$	167,388	$	67,284

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

5

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, 2022	19,980	$	484,531	10,801	$	10,801	$	128,939	$	(50,843)	$	698,530	$	1,271,958
Net Income	—	—		—	—		—		—		47,035		47,035
Other comprehensive loss, net of tax	—	—		—	—		—		(9,019)		—		(9,019)
Cash dividends:
Preferred stock	—	—		—	—		—		—		(6,791)		(6,791)
Common stock (cash dividend of $1.10 per share)	—	—		—	—		—		—		(11,882)		(11,882)
Issuance of Class C Common Stock	—	—		19	19		51		—		—		70
Stock-based compensation cost	—	—		—	—		2,254		—		—		2,254
Other stock-based award activity	—	—		—	—		(1,240)		—		—		(1,240)
Balance as of March 31, 2023	19,980	$	484,531	10,820	$	10,820	$	130,004	$	(59,862)	$	726,892	$	1,292,385
Net Income	—	—		—	—		—		—		47,212		47,212
Other comprehensive income, net of tax	—	—		—	—		—		25,511		—		25,511
Cash dividends:
Preferred stock	—	—		—	—		—		—		(6,791)		(6,791)
Common stock (cash dividend of $1.10 per share)	—	—		—	—		—		—		(11,921)		(11,921)
Issuance of Class C Common Stock	—	—		16	16		54		—		—		70
Stock-based compensation cost	—	—		—	—		1,223		—		—		1,223
Other stock-based award activity	—	—		—	—		(1,134)		—		—		(1,134)
Balance as of June 30, 2023	19,980	$	484,531	10,836	$	10,836	$	130,147	$	(34,351)	$	755,392	$	1,346,555
Net Income	—	—		—	—		—		—		58,137		58,137
Other comprehensive loss, net of tax	—	—		—	—		—		(1,488)		—		(1,488)
Cash dividends:
Preferred stock	—	—		—	—		—		—		(6,792)		(6,792)
Common stock (cash dividend of $1.10 per share)	—	—		—	—		—		—		(11,923)		(11,923)
Issuance of Class C Common Stock	—	—		4	4		64		—		—		68
Stock-based compensation cost	—	—		—	—		1,221		—		—		1,221
Other stock-based award activity	—	—		—	—		(511)		—		—		(511)
Balance as of September 30, 2023	19,980	$	484,531	10,840	$	10,840	$	130,921	$	(35,839)	$	794,814	$	1,385,267

6

									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, 2021	19,980	$	484,531	10,766	$	10,766	$	125,993	$	3,853	$	588,557	$	1,213,700
Net Income	—	—		—	—		—		—		51,453		51,453
Other comprehensive loss, net of tax	—	—		—	—		—		(43,518)		—		(43,518)
Cash dividends:
Preferred stock	—	—		—	—		—		—		(6,791)		(6,791)
Common stock (cash dividend of $0.95 per share)	—	—		—	—		—		—		(10,229)		(10,229)
Issuance of Class C Common Stock	—	—		22	22		46		—		—		68
Stock-based compensation cost	—	—		—	—		2,113		—		—		2,113
Other stock-based award activity	—	—		—	—		(1,049)		—		—		(1,049)
Balance as of March 31, 2022	19,980	$	484,531	10,788	$	10,788	$	127,103	$	(39,665)	$	622,990	$	1,205,747
Net Income	—	—		—	—		—		—		41,855		41,855
Other comprehensive loss, net of tax	—	—		—	—		—		(9,819)		—		(9,819)
Cash dividends:
Preferred stock	—	—		—	—		—		—		(6,792)		(6,792)
Common stock (cash dividend of $0.95 per share)	—	—		—	—		—		—		(10,256)		(10,256)
Issuance of Class C Common Stock	—	—		9	9		46		—		—		55
Stock-based compensation cost	—	—		—	—		862		—		—		862
Other stock-based award activity	—	—		—	—		(442)		—		—		(442)
Balance as of June 30, 2022	19,980	$	484,531	10,797	$	10,797	$	127,569	$	(49,484)	$	647,797	$	1,221,210
Net Income	—	—		—	—		—		—		41,418		41,418
Other comprehensive loss, net of tax	—	—		—	—		—		(14,105)		—		(14,105)
Cash dividends:
Preferred stock	—	—		—	—		—		—		(6,791)		(6,791)
Common stock (cash dividend of $0.95 per share)	—	—		—	—		—		—		(10,260)		(10,260)
Issuance of Class C Common Stock	—	—		3	3		48		—		—		51
Stock-based compensation cost	—	—		—	—		832		—		—		832
Other stock-based award activity	—	—		—	—		(332)		—		—		(332)
Balance as of September 30, 2022	19,980	$	484,531	10,800	$	10,800	$	128,117	$	(63,589)	$	672,164	$	1,232,023

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

7

FEDERAL AGRICULTURAL MORTGAGE CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited)

	For the Nine Months Ended
	September 30, 2023		September 30, 2022
	(in thousands)
Cash flows from operating activities:
Net income	$	152,384	$	134,726
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	(11,456)		2,456
Amortization of debt premiums, discounts, and issuance costs	22,851		11,839
Net change in fair value of trading securities, hedged assets, and financial derivatives	340,035		665,775
Total provision for/(release of) allowance for losses	1,711		(1,139)
Excess tax benefits related to stock-based awards	470		87
Deferred income taxes	9,304		14,820
Stock-based compensation expense	4,699		3,807
Proceeds from repayment of loans purchased as held for sale	19,364		31,086
Net change in:
Interest receivable	(7,116)		(1,931)
Guarantee and commitment fees receivable	(1,633)		991
Other assets	(7,903)		(144,031)
Accrued interest payable	54,263		31,818
Custodial deposit liability	(31,489)		(41,392)
Other liabilities	(2,836)		(2,654)
Net cash provided by operating activities	542,648		706,258
Cash flows from investing activities:
Purchases of available-for-sale investment securities	(1,381,795)		(1,789,932)
Purchases of other investment securities	(2,135)		(877)
Purchases of Farmer Mac Guaranteed Securities and USDA Securities	(3,182,678)		(4,308,083)
Purchases of loans held for investment	(1,520,116)		(2,122,360)
Proceeds from repayment of available-for-sale investment securities	1,146,861		1,103,046
Proceeds from repayment of Farmer Mac Guaranteed Securities and USDA Securities	2,578,193		3,933,894
Proceeds from repayment of loans purchased as held for investment	1,081,265		1,077,209
Proceeds from sale of loans previously classified as held for investment	—		9,000
Proceeds from sale of Farmer Mac Guaranteed Securities	—		47,212
Net cash used in investing activities	(1,280,405)		(2,050,891)
Cash flows from financing activities:
Proceeds from issuance of discount notes	36,018,319		40,788,399
Proceeds from issuance of medium-term notes	5,559,198		6,866,487
Proceeds from third parties from issuance of debt securities of consolidated trusts	222,188		258,198
Payments to redeem discount notes	(35,059,286)		(42,096,456)
Payments to redeem medium-term notes	(5,931,450)		(4,261,315)
Payments to third parties on debt securities of consolidated trusts	(91,118)		(198,463)
Proceeds from common stock issuance	169		140
Tax payments related to share-based awards	(2,847)		(1,789)
Dividends paid on common and preferred stock	(56,100)		(51,119)
Net cash provided by financing activities	659,073		1,304,082
Net change in cash and cash equivalents	(78,684)		(40,551)
Cash and cash equivalents at beginning of period	861,002		908,785
Cash and cash equivalents at end of period	$	782,318	$	868,234

Non-cash activity:
Loans securitized as Farmer Mac Guaranteed Securities	10,573	47,212
Loans held for investment transferred to consolidated trusts	281,027	297,713
Reclassification of defaulted loans from loans held for investment in consolidated trusts to loans held for investment	3,078	1,781
Capitalized interest	—	446
Matured securities receivable	(77,445)	—
Charge-off from the allowance for losses	—	84
Borrowers' payments not yet received from servicers	(3,335)	—
Purchases of securities - traded, not yet settled	16,012	268,370
Transfers of available-for-sale Farmer Mac Guaranteed Securities to held-to-maturity	2,684,096	—

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

8

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, 2022 consolidated balance sheet presented in this report has been derived

from Farmer Mac's audited 2022 consolidated financial statements, as revised. 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 2022 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, 2022, as filed with the SEC

on February 24, 2023. 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, 2023.

Principles of Consolidation

The consolidated financial statements include the accounts of Farmer Mac and its two subsidiaries: (1) Farmer Mac Mortgage Securities Corporation, 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 Securities included in the Agricultural Finance line of business. The consolidated financial statements also include the accounts of Variable Interest Entities ("VIEs") in which Farmer Mac determined itself to be the primary beneficiary.

9

Table 1.1

	Consolidation of Variable Interest Entities
	As of September 30, 2023
	Agricultural Finance		Treasury		Total
	(in thousands)
On-Balance Sheet:
Consolidated VIEs:
Loans held for investment in consolidated trusts, at amortized cost	$	1,422,854	$	—	$	1,422,854
Debt securities of consolidated trusts held by third parties (1)(2)	1,334,014		—		1,334,014
Unconsolidated VIEs:
Farmer Mac Guaranteed Securities:
Carrying value	39,131		—		39,131
Maximum exposure to loss (3)	38,689		—		38,689
Investment securities:
Carrying value (4)	—		3,532,286		3,532,286
Maximum exposure to loss (3) (4)	—		3,809,871		3,809,871
Off-Balance Sheet:
Unconsolidated VIEs:
Farmer Mac Guaranteed Securities:
Maximum exposure to loss (3) (5)	455,681		—		455,681

(1)Includes borrower remittances of $0.4 million. The borrower remittances had not been passed through to third-party investors as of September 30, 2023.

(2)Includes $89.2 million in unamortized discount related to structured securitization transactions.

(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, government-sponsored enterprise ("GSE")-guaranteed mortgage-backed securities, and other mission related investments.

(5)The amount under the Agricultural Finance line of business relates to unconsolidated trusts where it was determined that Farmer Mac was either not the primary beneficiary due to shared power with an unrelated party or a subordinate class majority holder has the unilateral right to remove Farmer Mac as Master Servicer without cause.

10

	Consolidation of Variable Interest Entities
	As of December 31, 2022
	Agricultural Finance		Treasury		Total
	(in thousands)
On-Balance Sheet:
Consolidated VIEs:
Loans held for investment in consolidated trusts, at amortized cost	$	1,211,576	$	—	$	1,211,576
Debt securities of consolidated trusts held by third parties (1)(2)	1,181,948		—		1,181,948
Unconsolidated VIEs:
Farmer Mac Guaranteed Securities:
Carrying value	28,466		—		28,466
Maximum exposure to loss (3)	31,208		—		31,208
Investment securities:
Carrying value (4)	—		3,138,619		3,138,619
Maximum exposure to loss (3) (4)	—		3,341,427		3,341,427
Off-Balance Sheet:
Unconsolidated VIEs:
Farmer Mac Guaranteed Securities:
Maximum exposure to loss (3) (5)	500,953		—		500,953

(1)Includes borrower remittances of $8.1 million. The borrower remittances had not been passed through to third-party investors as of December 31, 2022.

(2)Includes $37.7 million in unamortized discount related to a structured securitization transaction.

(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, government-sponsored enterprise ("GSE")-guaranteed mortgage-backed securities, and other mission related investments.

(5)The amount under the Agricultural Finance line of business relates to unconsolidated trusts where it was determined that Farmer Mac was either not the primary beneficiary due to shared power with an unrelated party or a subordinate class majority holder has the unilateral right to remove Farmer Mac as Master Servicer without cause.

11

(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, 2023 and 2022:

Table 1.2

	For the Three Months Ended
	September 30, 2023					September 30, 2022
	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	$	51,345	10,839	$	4.74	$	34,627	10,799	$	3.21
Effect of dilutive securities(1)
SARs and restricted stock	—		99	(0.05)		—		75	(0.03)
Diluted EPS	$	51,345	10,938	$	4.69	$	34,627	10,874	$	3.18

(1)For the three months ended September 30, 2023 and 2022, SARs and restricted stock of 16,761 and 18,432 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, 2023 and 2022, contingent shares of unvested restricted stock of 32,469 and 18,535 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, 2023					September 30, 2022
	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	$	132,010	10,825	$	12.20	$	114,352	10,787	$	10.61
Effect of dilutive securities(1)
SARs and restricted stock	—		99	(0.12)		—		88	(0.10)
Diluted EPS	$	132,010	10,924	$	12.08	$	114,352	10,875	$	10.51

(1)For the nine months ended September 30, 2023 and 2022, SARs and restricted stock of 37,990 and 37,120 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, 2023 and 2022, contingent shares of unvested restricted stock of 32,407 and 18,535 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.

12

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, 2023 and 2022.

Table 1.3

	As of September 30, 2023								As of September 30, 2022
	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	$	(96,607)	$	15,486	$	46,770	$	(34,351)	$	(98,924)	$	16,818	$	32,622	$	(49,484)
Other comprehensive income/(loss) before reclassifications	17,443		(25,199)		10,376		2,620		(33,041)		—		20,277		(12,764)
Amounts reclassified from AOCI	(4)		294		(4,398)		(4,108)		(2)		(492)		(847)		(1,341)
Net comprehensive income/(loss)	17,439		(24,905)		5,978		(1,488)		(33,043)		(492)		19,430		(14,105)
Ending Balance	$	(79,168)	$	(9,419)	$	52,748	$	(35,839)	$	(131,967)	$	16,326	$	52,052	$	(63,589)
For the Nine Months Ended:
Beginning Balance	$	(115,561)	$	16,357	$	48,361	$	(50,843)	$	(6,932)	$	16,153	$	(5,368)	$	3,853
Other comprehensive income/(loss) before reclassifications	36,406		(25,199)		16,277		27,484		(125,027)		—		55,766		(69,261)
Amounts reclassified from AOCI	(13)		(577)		(11,890)		(12,480)		(8)		173		1,654		1,819
Net comprehensive income/(loss)	36,393		(25,776)		4,387		15,004		(125,035)		173		57,420		(67,442)
Ending Balance	$	(79,168)	$	(9,419)	$	52,748	$	(35,839)	$	(131,967)	$	16,326	$	52,052	$	(63,589)

13

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, 2023 and 2022:

Table 1.4

	For the Three Months Ended
	September 30, 2023						September 30, 2022
	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	$	22,081	$	4,638	$	17,443	$	(41,824)	$	(8,783)	$	(33,041)
Less reclassification adjustments included in:
Net interest income(1)	—		—		—		—		—		—
Other income(2)	(5)		(1)		(4)		(3)		(1)		(2)
Total	$	22,076	$	4,637	$	17,439	$	(41,827)	$	(8,784)	$	(33,043)
Held-to-maturity securities:
Change in fair value(3)	$	(31,898)	$	(6,699)	$	(25,199)	$	—	$	—	$	—
Less reclassification adjustments included in:
Net interest income(4)	373		79		294		(622)		(130)		(492)
Total	$	(31,525)	$	(6,620)	$	(24,905)	$	(622)	$	(130)	$	(492)
Cash flow hedges
Unrealized gains on cash flow hedges	$	13,135	$	2,759	$	10,376	$	25,668	$	5,391	$	20,277
Less reclassification adjustments included in:
Net interest income(5)	(5,569)		(1,171)		(4,398)		(1,072)		(225)		(847)
Total	$	7,566	$	1,588	$	5,978	$	24,596	$	5,166	$	19,430
Other comprehensive loss	$	(1,883)	$	(395)	$	(1,488)	$	(17,853)	$	(3,748)	$	(14,105)

(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)Represents the accumulated unrealized loss on the AgVantage Securities transferred from available-for-sale to held-to-maturity.

(4)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.

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

14

	For the Nine Months Ended
	September 30, 2023						September 30, 2022
	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	$	46,084	$	9,678	$	36,406	$	(158,263)	$	(33,236)	$	(125,027)
Less reclassification adjustments included in:
Net interest income(1)	—		—		—		—		—		—
Other income(2)	(16)		(3)		(13)		(10)		(2)		(8)
Total	$	46,068	$	9,675	$	36,393	$	(158,273)	$	(33,238)	$	(125,035)
Held-to-maturity securities:
Change in fair value(3)	$	(31,898)	$	(6,699)	$	(25,199)	$	—	$	—	$	—
Less reclassification adjustments included in:
Net interest income(4)	(730)		(153)		(577)		220		47		173
Total	$	(32,628)	$	(6,852)	$	(25,776)	$	220	$	47	$	173
Cash flow hedges
Unrealized gains on cash flow hedges	$	20,604	$	4,327	$	16,277	$	70,590	$	14,824	$	55,766
Less reclassification adjustments included in:
Net interest income(5)	(15,051)		(3,161)		(11,890)		2,094		440		1,654
Total	$	5,553	$	1,166	$	4,387	$	72,684	$	15,264	$	57,420
Other comprehensive income/(loss)	$	18,993	$	3,989	$	15,004	$	(85,369)	$	(17,927)	$	(67,442)

(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)Represents the accumulated unrealized loss on the AgVantage Securities transferred from available-for-sale to held-to-maturity.

(4)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.

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

15

(c) New Accounting Standards

Recently Adopted Accounting Guidance

Standard	Description	Date of Adoption	Effect on Consolidated Financial Statements
ASU 2020-04 and 2021-01, 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.	January 1, 2020	During the second quarter 2023, Farmer Mac adopted optional expedients including those relating to qualifying hedging relationships and contract modification relief, and as of June 30, 2023, has no further variable-rate exposure to LIBOR. To date, these elections did not have a material effect on Farmer Mac's financial position, results of operations, or cash flows. Farmer Mac does not expect to elect further expedients through the ending date of December 31, 2024.
ASU 2022-06, Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848	The amendments in this Update deferred the sunset date in Topic 848 from December 31, 2022 to December 31, 2024.	December 21, 2022	Farmer Mac does not expect to elect further expedients through the ending date of December 31, 2024.
ASU 2022-02, Financial Instruments-Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures	The Update addresses and amends areas identified by the Financial Accounting Standards Board as part of its post-implementation review of the accounting standard that introduced the current expected credit losses (“CECL”) model. The amendments eliminate the accounting guidance for troubled debt restructurings by creditors that have adopted the CECL model and enhance the disclosure requirements for loan refinancings and restructurings made with borrowers experiencing financial difficulty. In addition, the amendments require disclosure of current-period gross write offs for financing receivables and net investment in leases by year of origination in the vintage disclosures.	January 1, 2023	The adoption of this Update did not have a material effect on Farmer Mac's financial position, results of operations, or cash flows.
ASU 2022-01, Fair Value Hedging - Portfolio Layer Method	The Update introduces the portfolio layer method, which expands the current single-layer method to allow multiple hedged layers of a single closed portfolio under the method (previously named, last-of-layer method). Additionally, it expands the scope of the portfolio layer method to include non-prepayable assets, specifies eligible hedging instruments in a single-layer hedge, provides additional guidance on the accounting for and disclosure of hedge basis adjustments under the portfolio layer method, specifies how hedge basis adjustments should be considered when determining credit losses for the assets included in the closed portfolio, and provides that an entity may reclassify HTM debt securities identified within 30 days of the date of adoption to AFS if the entity applies portfolio layer method hedging to those debt securities.	January 1, 2023	Farmer Mac adopted this guidance as of January 1, 2023. Farmer Mac does not currently hedge interest rate risk for single closed portfolios of financial assets, so adoption of this guidance had no effect on Farmer Mac's financial condition, results of operations, cash flows, or disclosures given current strategies.

16

(d) Reclassifications

Certain reclassifications of prior period information were made to conform to the current period presentation. The reclassifications of prior period information were not material to the consolidated financial statements.

2.INVESTMENT SECURITIES

The following tables set forth information about Farmer Mac's available-for-sale and held-to-maturity investment securities as of September 30, 2023 and December 31, 2022:

Table 2.1

	As of September 30, 2023
	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	$	(27)	$	—	$	(640)	$	19,033
Floating rate Government/GSE guaranteed mortgage-backed securities	2,499,578		(1,170)		2,498,408		—		2,054		(34,917)		2,465,545
Fixed rate GSE guaranteed mortgage-backed securities	1,629,166		(45,118)		1,584,048		—		—		(197,670)		1,386,378
Floating rate U.S. Treasuries	50,000		(23)		49,977		—		34		—		50,011
Fixed rate U.S. Treasuries	978,585		(16,242)		962,343		—		—		(9,896)		952,447
Total available-for-sale	5,177,029		(62,553)		5,114,476		(27)		2,088		(243,123)		4,873,414
Held-to-maturity:
Floating rate Government/GSE guaranteed mortgage-backed securities(3)	45,032		—		45,032		—		930		—		45,962
Total held-to-maturity	$	45,032	$	—	$	45,032	$	—	$	930	$	—	$	45,962

(1)Amounts presented exclude $17.4 million of accrued interest receivable on investment securities as of September 30, 2023.

(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 6.5% as of September 30, 2023.

17

	As of December 31, 2022
	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	$	(33)	$	—	$	(640)	$	19,027
Floating rate Government/GSE guaranteed mortgage-backed securities	2,433,696		(200)		2,433,496		—		1,954		(42,910)		2,392,540
Fixed rate GSE guaranteed mortgage-backed securities	1,207,416		(30,321)		1,177,095		—		2,128		(130,837)		1,048,386
Fixed rate U.S. Treasuries	1,145,915		(6,780)		1,139,135		—		621		(20,145)		1,119,611
Total available-for-sale	4,806,727		(37,301)		4,769,426		(33)		4,703		(194,532)		4,579,564
Held-to-maturity:
Floating rate Government/GSE guaranteed mortgage-backed securities(3)	45,032		—		45,032		—		2,433		—		47,465
Total held-to-maturity	$	45,032	$	—	$	45,032	$	—	$	2,433	$	—	$	47,465

(1)Amounts presented exclude $10.6 million of accrued interest receivable on investment securities as of December 31, 2022.

(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 4.5% as of December 31, 2022.

Farmer Mac did not sell any securities from its available-for-sale investment portfolio during the three and nine months ended September 30, 2023 and 2022.

As of September 30, 2023 and December 31, 2022, unrealized losses on available-for-sale investment securities were as follows:

Table 2.2

	As of September 30, 2023
	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	$	—	$	—	$	19,033	$	(640)
Floating rate Government/GSE guaranteed mortgage-backed securities	583,799		(4,076)		1,431,925		(30,841)
Fixed rate Government/GSE guaranteed mortgage-backed securities	535,288		(29,649)		851,082		(168,021)
Fixed rate U.S. Treasuries	655,068		(4,552)		297,378		(5,344)
Total	$	1,774,155	$	(38,277)	$	2,599,418	$	(204,846)
Number of securities in loss position			85				170

18

	As of December 31, 2022
	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	$	—	$	—	$	19,027	$	(640)
Floating rate Government/GSE guaranteed mortgage-backed securities	1,884,146		(36,976)		193,964		(5,934)
Fixed rate Government/GSE guaranteed mortgage-backed securities	621,215		(56,434)		336,782		(74,403)
Fixed rate U.S. Treasuries	314,524		(2,842)		704,780		(17,303)
Total	$	2,819,885	$	(96,252)	$	1,254,553	$	(98,280)
Number of securities in loss position			174				51

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, 2023 and December 31, 2022, 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, 2023 and December 31, 2022, all of the investment securities in an unrealized loss position either were backed by the full faith and credit of the U.S. government, a U.S. government sponsored enterprise, 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, 2023 that is, on average, approximately 92.7% 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, changes in credit spread, and changes in levels of interest rates.

The amortized cost, fair value, and weighted-average yield of available-for-sale investment securities by remaining contractual maturity as of September 30, 2023 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, 2023
	Available-for-Sale Securities
	Amortized Cost		Fair Value		Weighted- Average Yield
	(dollars in thousands)
Due within one year	$	589,475	$	584,714	1.35%
Due after one year through five years	1,171,601		1,135,888		4.06%
Due after five years through ten years	2,534,914		2,358,496		4.39%
Due after ten years	818,486		794,316		5.61%
Total	$	5,114,476	$	4,873,414	4.16%

19

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, 2023 and December 31, 2022:

Table 3.1

	As of September 30, 2023
	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	$	4,158,857	$	(30,389)	$	4,128,468	$	(196)	$	4,525	$	(49,221)	$	4,083,576
Farmer Mac Guaranteed USDA Securities	29,109		33		29,142		—		—		(1,362)		27,780
Total Farmer Mac Guaranteed Securities	4,187,966		(30,356)		4,157,610		(196)		4,525		(50,583)		4,111,356
USDA Securities	2,299,407		22,948		2,322,355		—		194		(390,322)		1,932,227
Total held-to-maturity	$	6,487,373	$	(7,408)	$	6,479,965	$	(196)	$	4,719	$	(440,905)	$	6,043,583
Available-for-sale:
AgVantage	$	5,526,857	$	—	$	5,526,857	$	(374)	$	—	$	(477,775)	$	5,048,708
Farmer Mac Guaranteed Securities(3)	—		9,580		9,580		—		409		—		9,989
Total available-for-sale	$	5,526,857	$	9,580	$	5,536,437	$	(374)	$	409	$	(477,775)	$	5,058,697
Trading:
USDA Securities(4)	$	1,314	$	57	$	1,371	$	—	$	—	$	(69)	$	1,302

(1)Amounts presented exclude $53.3 million, $58.9 million, and $38,000 of accrued interest receivable on available-for-sale, held-to-maturity, and trading securities, respectively, as of September 30, 2023.

(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)Fair value includes $10.0 million of an interest-only security with a notional amount of $239.1 million.

(4)The trading USDA securities had a weighted average yield of 5.50% as of September 30, 2023.

	As of December 31, 2022
	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	$	1,000,689	$	(95)	$	1,000,594	$	(59)	$	353	$	(54,098)	$	946,790
Farmer Mac Guaranteed USDA Securities	20,586		33		20,619		—		2		(856)		19,765
Total Farmer Mac Guaranteed Securities	1,021,275		(62)		1,021,213		(59)		355		(54,954)		966,555
USDA Securities	2,384,946		24,888		2,409,834		—		668		(312,824)		2,097,678
Total held-to-maturity	$	3,406,221	$	24,826	$	3,431,047	$	(59)	$	1,023	$	(367,778)	$	3,064,233
Available-for-sale:
AgVantage	$	8,008,067	$	806	$	8,008,873	$	(546)	$	2,061	$	(411,009)	$	7,599,379
Farmer Mac Guaranteed Securities(3)	—		10,622		10,622		—		—		(2,775)		$	7,847
Total available-for-sale	$	8,008,067	$	11,428	$	8,019,495	$	(546)	$	2,061	$	(413,784)	$	7,607,226
Trading:
USDA Securities(4)	$	1,770	$	80	$	1,850	$	—	$	—	$	(83)	$	1,767

(1)Amounts presented exclude $51.5 million, $44.4 million, and $47,000 of accrued interest receivable on available-for-sale, held-to-maturity, and trading securities, respectively, as of December 31, 2022.

20

(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)Fair value includes $7.8 million of an interest-only security with a notional amount of $250.1 million.

(4)The trading USDA securities had a weighted average yield of 4.84% as of December 31, 2022.

On July 1, 2023, Farmer Mac transferred $2.7 billion of AgVantage Securities from available-for-sale to held-to-maturity to reflect Farmer Mac's positive intent and ability to hold these securities until maturity or payoff. Farmer Mac transferred these securities at fair value as of the date of the transfer, which included a cost basis adjustment of unrealized losses of $31.9 million. The accumulated unrealized losses were retained in accumulated other comprehensive income in the amount of $31.9 million. Farmer Mac accounts for held-to-maturity securities at amortized cost. Both the cost basis adjustment and accumulated unrealized depreciation will be amortized as an adjustment to the yield on the held-to-maturity AgVantage Securities over the remaining term of the transferred securities.

As of September 30, 2023 and December 31, 2022, 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, 2023
	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	$	2,022,393	$	(2,613)	$	812,575	$	(46,608)
Farmer Mac Guaranteed USDA Securities	19,559		(322)		8,251		(1,040)
USDA Securities	1,495		(22)		1,921,243		(390,300)
Total held-to-maturity	$	2,043,447	$	(2,957)	$	2,742,069	$	(437,948)
Available-for-sale:
AgVantage	$	993,705	$	(30,193)	$	4,055,377	$	(447,582)
Farmer Mac Guaranteed Securities	—		—		—		—
Total available-for-sale	$	993,705	$	(30,193)	$	4,055,377	$	(447,582)

21

	As of December 31, 2022
	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	$	548,634	$	(11,455)	$	382,358	$	(42,643)
Farmer Mac Guaranteed USDA Securities	19,790		(856)		—		—
USDA Securities	2,086,108		(312,824)		—		—
Total held-to-maturity	$	2,654,532	$	(325,135)	$	382,358	$	(42,643)
Available-for-sale:
AgVantage	$	4,642,096	$	(267,886)	$	1,548,551	$	(143,123)
Farmer Mac Guaranteed Securities	7,847		(2,775)		—		—
Total available-for-sale	$	4,649,943	$	(270,661)	$	1,548,551	$	(143,123)

The unrealized losses presented above are principally due to changes in interest rates from the date of acquisition to September 30, 2023 and December 31, 2022, as applicable.

The credit exposure related to Farmer Mac's USDA Securities in the Agricultural Finance line of business is covered by the full faith and credit guarantee of the United States of America.

The unrealized losses from AgVantage securities were on 76 and 95 available-for-sale securities as of September 30, 2023 and December 31, 2022, respectively. There were 59 and 37 held-to-maturity AgVantage securities with an unrealized loss as of September 30, 2023 and December 31, 2022, respectively. As of September 30, 2023 and December 31, 2022, 64 and 13 available-for-sale AgVantage securities, respectively, had been in a loss position for more than 12 months. As of September 30, 2023 and December 31, 2022, there were 26 and 4 held-to-maturity AgVantage securities, respectively, in a loss position for more than 12 months.

During the three and nine months ended September 30, 2023 and 2022 Farmer Mac had no sales of AgVantage Farmer Mac Guaranteed Securities, USDA Farmer Mac Guaranteed Securities or USDA Trading Securities and, therefore, Farmer Mac realized no gains or losses.

22

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, 2023 are set forth below. The balances presented are based on their contractual maturities, although the actual maturities may differ due to prepayments of the underlying assets.

Table 3.3

	As of September 30, 2023
	Available-for-Sale Securities
	Amortized Cost(1)		Fair Value		Weighted- Average Yield
	(dollars in thousands)
Due within one year	$	693,100	$	682,379	3.25	%
Due after one year through five years	2,739,174		2,579,604		3.47	%
Due after five years through ten years	1,142,500		997,848		3.27	%
Due after ten years	961,663		798,866		3.55	%
Total	$	5,536,437	$	5,058,697	3.41	%

(1)Amounts presented exclude $53.3 million of accrued interest receivable.

	As of September 30, 2023
	Held-to-Maturity Securities
	Amortized Cost(1)		Fair Value		Weighted- Average Yield
	(dollars in thousands)
Due within one year	$	2,071,858	$	2,066,836	5.61	%
Due after one year through five years	1,321,681		1,269,796		4.22	%
Due after five years through ten years	453,755		409,148		4.30	%
Due after ten years	2,632,671		2,297,803		4.19	%
Total	$	6,479,965	$	6,043,583	4.68	%

(1)Amounts presented exclude $58.9 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. Certain financial derivatives are designated as fair value hedges of

fixed rate assets, classified as available-for-sale, to protect against fair value changes in the assets related

to changes in a benchmark interest rate (e.g., SOFR). Certain other financial derivatives are

designated as cash flow hedges to mitigate the volatility of future interest rate payments on floating rate

debt. Certain financial derivatives are not designated in hedge accounting relationships.

Farmer Mac manages the interest rate risk related to loans it has committed to acquire, but has not yet

permanently funded, primarily through the use of futures contracts involving U.S. Treasury securities. Farmer Mac aims to achieve a duration-matched hedge ratio between the hedged item and the hedge instrument. Gains or losses generated by these hedge transactions are expected to offset changes in funding costs. All financial derivatives are recorded on the balance sheet at fair value as a freestanding

asset or liability.

23

The following tables summarize information related to Farmer Mac's financial derivatives on a gross basis without giving consideration to master netting arrangements. The table below includes accrued interest on cleared swaps, but excludes $14.3 million and $6.1 million of accrued interest receivable and $6.3 million and $3.6 million of accrued interest payable on uncleared swaps as of September 30, 2023 and December 31, 2022, respectively. The aforementioned accrued interest on uncleared swaps is included within Accrued Interest Receivable and Accrued Interest Payable on the consolidated balance sheets.

Table 4.1

	As of September 30, 2023
			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:
Receive fixed non-callable	$	8,942,935	$	2,996	$	(11)	5.46%	2.74%		1.67
Pay fixed non-callable	8,830,943		81		(11,054)		2.39%	5.33%		9.89
Receive fixed callable	4,181,077		—		(179,299)		5.26%	3.06%		2.37
Cash flow hedges:
Interest rate swaps:
Pay fixed non-callable	563,000		27,510		(372)		1.94%	5.74%		4.51
No hedge designation:
Interest rate swaps:
Pay fixed non-callable	183,882		1,240		(166)		2.92%	5.44%		4.01
Receive fixed non-callable	851,146		69		(3)		5.34%	4.51%		0.70
Basis swaps	895,384		58		(625)		5.43%	5.45%		3.89
Treasury futures	11,900		81		(12)				108.64
Netting adjustments(1)			(3,180)		3,180
Total financial derivatives	$	24,460,267	$	28,855	$	(188,362)

(1)Amounts represent the application of the netting requirements that allow Farmer Mac to settle positive and negative positions, including accrued interest, held or placed with the same clearing agent.

24

	As of December 31, 2022
			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:
Receive fixed non-callable	$	10,033,750	$	19	$	(4,686)	4.31%	2.03%		1.64
Pay fixed non-callable	8,149,871		13,689		(366)		2.23%	4.33%		10.76
Receive fixed callable	2,764,577		461		(174,757)		4.21%	1.98%		3.18
Cash flow hedges:
Interest rate swaps:
Pay fixed non-callable	588,000		27,275		—		1.93%	4.72%		5.05
No hedge designation:
Interest rate swaps:
Pay fixed non-callable	187,479		1,065		(1)		3.05%	4.09%		4.52
Receive fixed non-callable	287,750		—		(130)		4.31%	1.16%		1.76
Basis swaps	1,860,384		112		(456)		4.40%	4.42%		2.46
Treasury futures	6,800		—		(142)				114.38
Netting adjustments(1)			(5,212)		5,212
Total financial derivatives	$	23,878,611	$	37,409	$	(175,326)

(1)Amounts represent the application of the netting requirements that allow Farmer Mac to settle positive and negative positions, including accrued interest, held or placed with the same clearing agent.

As of September 30, 2023, Farmer Mac expects to reclassify $16.6 million after-tax from accumulated other comprehensive income to earnings over the next twelve months related to cash flow hedges. 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, 2023. During the three and nine months ended September 30, 2023 and 2022, 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.

25

The following tables summarize the net income/(expense) recognized in the consolidated statements of operations related to derivatives for the three and nine months ended September 30, 2023 and 2022:

Table 4.2

	For the Three Months Ended September 30, 2023
	Net Income/(Expense) Recognized in Consolidated Statement of Operations on Derivatives
	Net Interest Income								Non-Interest Income		Total
	Interest Income Investments and Cash Equivalents		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	$	79,947	$	161,351	$	140,513	$	(294,168)	$	2,671	$	90,314
Income/(expense) related to interest settlements on fair value hedging relationships:
Recognized on derivatives	9,950		40,114		17,692		(92,663)		—		(24,907)
Recognized on hedged items	9,006		46,303		16,089		(91,525)		—		(20,127)
Premium/discount amortization recognized on hedged items	623		—		—		(732)		—		(109)
Income/(expense) related to interest settlements on fair value hedging relationships	$	19,579	$	86,417	$	33,781	$	(184,920)	$	—	$	(45,143)
Gains/(losses) on fair value hedging relationships:
Recognized on derivatives	$	42,051	$	110,196	$	107,265	$	9,475	$	—	$	268,987
Recognized on hedged items	(41,944)		(107,965)		(105,403)		(10,465)		—		(265,777)
Gains/(losses) on fair value hedging relationships	$	107	$	2,231	$	1,862	$	(990)	$	—	$	3,210
Expense related to interest settlements on cash flow hedging relationships:
Interest settlements reclassified from AOCI into net income on derivatives	$	—	$	—	$	—	$	5,569	$	—	$	5,569
Recognized on hedged items	—		—		—		(8,287)		—		(8,287)
Discount amortization recognized on hedged items	—		—		—		(14)		—		(14)
Expense recognized on cash flow hedges	$	—	$	—	$	—	$	(2,732)	$	—	$	(2,732)
Gains on financial derivatives not designated in hedging relationships:
Gains on interest rate swaps	$	—	$	—	$	—	$	—	$	2,772	$	2,772
Interest expense on interest rate swaps	—		—		—		—		(805)		(805)
Treasury futures	—		—		—		—		704		704
Gains on financial derivatives not designated in hedge relationships	$	—	$	—	$	—	$	—	$	2,671	$	2,671

26

	For the Three Months Ended September 30, 2022
	Net Income/(Expense) Recognized in Consolidated Statement of Operations on Derivatives
	Net Interest Income								Non-Interest Income		Total
	Interest Income Investments and Cash Equivalents		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:	$	21,581	$	74,695	$	97,514	$	(125,937)	$	772	$	68,625
Income/(expense) related to interest settlements on fair value hedging relationships:
Recognized on derivatives	957		(350)		1,837		(22,679)		—		(20,235)
Recognized on hedged items	4,617		35,763		14,857		(35,263)		—		19,974
Discount amortization recognized on hedged items	(59)		—		—		(549)		—		(608)
Income/(expense) related to interest settlements on fair value hedging relationships	$	5,515	$	35,413	$	16,694	$	(58,491)	$	—	$	(869)
(Losses)/gains on fair value hedging relationships:
Recognized on derivatives	$	49,373	$	201,864	$	105,683	$	(197,884)	$	—	$	159,036
Recognized on hedged items	(52,308)		(204,765)		(100,490)		197,902		—		(159,661)
(Losses)/gains on fair value hedging relationships	$	(2,935)	$	(2,901)	$	5,193	$	18	$	—	$	(625)
Expense related to interest settlements on cash flow hedging relationships:
Interest settlements reclassified from AOCI into net income on derivatives	$	—	$	—	$	—	$	1,072	$	—	$	1,072
Recognized on hedged items	—		—		—		(4,046)		—		(4,046)
Discount amortization recognized on hedged items	—		—		—		(15)		—		(15)
Expense recognized on cash flow hedges	$	—	$	—	$	—	$	(2,989)	$	—	$	(2,989)
Gains on financial derivatives not designated in hedge relationships:
Gains on interest rate swaps	$	—	$	—	$	—	$	—	$	5,054	$	5,054
Interest expense on interest rate swaps	—		—		—		—		(2,613)		(2,613)
Treasury futures	—		—		—		—		(1,669)		(1,669)
Gains on financial derivatives not designated in hedge relationships	$	—	$	—	$	—	$	—	$	772	$	772

27

	For the Nine Months Ended September 30, 2023
	Net Income/(Expense) Recognized in Consolidated Statement of Operations on Derivatives
	Net Interest Income								Non-Interest Income		Total
	Interest Income Investments and Cash Equivalents		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	$	209,429	$	442,649	$	388,837	$	(795,537)	$	4,763	$	250,141
Income/(expense) related to interest settlements on fair value hedging relationships:
Recognized on derivatives	24,952		104,023		46,625		(258,358)		—		(82,758)
Recognized on hedged items	23,865		133,995		47,144		(243,053)		—		(38,049)
Premium/discount amortization recognized on hedged items	1,399		—		—		(2,137)		—		(738)
Income/(expense) related to interest settlements on fair value hedging relationships	$	50,216	$	238,018	$	93,769	$	(503,548)	$	—	$	(121,545)
(Losses)/gains on fair value hedging relationships:
Recognized on derivatives	$	45,722	$	117,267	$	97,346	$	50,916	$	—	$	311,251
Recognized on hedged items	(46,485)		(116,591)		(97,827)		(52,144)		—		(313,047)
(Losses)/gains on fair value hedging relationships	$	(763)	$	676	$	(481)	$	(1,228)	$	—	$	(1,796)
Expense related to interest settlements on cash flow hedging relationships:
Interest settlements reclassified from AOCI into net income on derivatives	$	—	$	—	$	—	$	15,051	$	—	$	15,051
Recognized on hedged items	—		—		—		(23,325)		—		(23,325)
Discount amortization recognized on hedged items	—		—		—		(41)		—		(41)
Expense recognized on cash flow hedges	$	—	$	—	$	—	$	(8,315)	$	—	$	(8,315)
Gains on financial derivatives not designated in hedging relationships:
Gains on interest rate swaps	$	—	$	—	$	—	$	—	$	5,263	$	5,263
Interest expense on interest rate swaps	—		—		—		—		(3,999)		(3,999)
Treasury futures	—		—		—		—		3,499		3,499
Gains on financial derivatives not designated in hedge relationships	$	—	$	—	$	—	$	—	$	4,763	$	4,763

28

	For the Nine Months Ended September 30, 2022
	Net Income/(Expense) Recognized in Consolidated Statement of Operations on Derivatives
	Net Interest Income								Non-Interest Income		Total
	Interest Income Investments and Cash Equivalents		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:	$	38,497	$	169,231	$	241,393	$	(251,816)	$	21,551	$	218,856
Income/(expense) related to interest settlements on fair value hedging relationships:
Recognized on derivatives	(1,536)		(37,687)		(9,568)		(3,831)		—		(52,622)
Recognized on hedged items	10,433		102,123		41,146		(76,862)		—		76,840
Discount amortization recognized on hedged items	(816)		—		—		(1,478)		—		(2,294)
Income/(expense) related to interest settlements on fair value hedging relationships	$	8,081	$	64,436	$	31,578	$	(82,171)	$	—	$	21,924
(Losses)/gains on fair value hedging relationships:
Recognized on derivatives	$	106,935	$	563,897	$	347,034	$	(523,432)	$	—	$	494,434
Recognized on hedged items	(108,002)		(564,679)		(337,443)		521,643		—		(488,481)
(Losses)/gains on fair value hedging relationships	$	(1,067)	$	(782)	$	9,591	$	(1,789)	$	—	$	5,953
Expense related to interest settlements on cash flow hedging relationships:
Interest settlements reclassified from AOCI into net income on derivatives	$	—	$	—	$	—	$	(2,094)	$	—	$	(2,094)
Recognized on hedged items	—		—		—		(6,654)		—		(6,654)
Discount amortization recognized on hedged items	—		—		—		(43)		—		(43)
Expense recognized on cash flow hedges	$	—	$	—	$	—	$	(8,791)	$	—	$	(8,791)
Gains on financial derivatives not designated in hedge relationships:
Gains on interest rate swaps	$	—	$	—	$	—	$	—	$	10,954	$	10,954
Interest expense on interest rate swaps	—		—		—		—		(5,496)		(5,496)
Treasury futures	—		—		—		—		16,093		16,093
Gains on financial derivatives not designated in hedge relationships	$	—	$	—	$	—	$	—	$	21,551	$	21,551

29

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, 2023 and December 31, 2022:

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, 2023		December 31, 2022		September 30, 2023		December 31, 2022
	(in thousands)
Investment securities, Available-for-Sale, at fair value	$	1,138,569	$	876,063	$	(153,592)	$	(107,107)
Farmer Mac Guaranteed Securities, Available-for-Sale, at fair value	5,025,413		4,814,784		(463,464)		(346,873)
Loans held for investment, at amortized cost	1,570,732		1,623,301		(425,105)		(327,278)
Notes Payable(1)	(12,614,569)		(12,151,382)		478,942		531,086

(1)Carrying amount represents amortized cost.

The following tables present the fair value of financial assets and liabilities, based on the terms of Farmer Mac's master netting arrangements as of September 30, 2023 and December 31, 2022:

Table 4.4

	September 30, 2023
							Gross Amounts Not Offset in the Consolidated Balance Sheet
	Gross Amount Recognized		Gross Amounts offset in the Consolidated Balance Sheet		Net Amount Presented in the Consolidated Balance Sheet(1)		Netting Adjustments		Financial instruments pledged		Cash Collateral(2)		Net Amount
	(in thousands)
Assets:
Uncleared derivatives	$	27,583	$	—	$	27,583	$	(27,501)	$	—	$	—	$	82
Cleared derivatives	3,180		(3,180)		—		—		—		—		—
Total	$	30,763	$	(3,180)	$	27,583	$	(27,501)	$	—	$	—	$	82
Liabilities:
Uncleared derivatives	$	(150,625)	$	—	$	(150,625)	$	27,501	$	—	$	120,556	$	(2,568)
Cleared derivatives	(11,622)		3,180		(8,442)		—		204,407		—		195,965
Total	$	(162,247)	$	3,180	$	(159,067)	$	27,501	$	204,407	$	120,556	$	193,397

(1)Amounts presented may not agree to the consolidated balance sheet related to counterparties not subject to master netting agreements.

(2)Cash collateral excludes $24.1 million of collateral posted related to counterparties not subject to master netting agreements.

30

	December 31, 2022
							Gross Amounts Not Offset in the Consolidated Balance Sheet
	Gross Amount Recognized		Gross Amounts offset in the Consolidated Balance Sheet		Net Amount Presented in the Consolidated Balance Sheet(1)		Netting Adjustments		Financial instruments pledged		Cash Collateral(2)		Net Amount
	(in thousands)
Assets:
Uncleared derivatives	$	27,132	$	—	$	27,132	$	(27,132)	$	—	$	—	$	—
Cleared derivatives	14,450		(5,212)		9,238		—		203,993		—		213,231
Total	$	41,582	$	(5,212)	$	36,370	$	(27,132)	$	203,993	$	—	$	213,231
Liabilities:
Uncleared derivatives	$	(149,864)	$	—	$	(149,864)	$	27,132	$	—	$	121,065	$	(1,667)
Cleared derivatives	(5,212)		5,212		—		—		—		—		—
Total	$	(155,076)	$	5,212	$	(149,864)	$	27,132	$	—	$	121,065	$	(1,667)

(1)Amounts presented may not agree to the consolidated balance sheet related to counterparties not subject to master netting agreements.

(2)Cash collateral excludes $23.7 million of collateral posted related to counterparties not subject to master netting agreements.

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, 2023 or December 31, 2022, 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, 2023 and December 31, 2022, 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 $24.5 billion notional amount of interest rate swaps outstanding as of September 30, 2023, $19.5 billion were cleared through the swap clearinghouse, the Chicago Mercantile Exchange ("CME"). Of Farmer Mac's $23.9 billion notional amount of interest rate swaps outstanding as of December 31, 2022, $19.5 billion were cleared through the CME. During 2023 and throughout 2022, Farmer Mac continued the use of non-cleared basis swaps to prepare for the transition away from the use of LIBOR as a reference rate, which was completed as of the end of the second quarter of 2023.

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. As of both September 30, 2023 and December 31, 2022, Farmer Mac had no loans held for sale.

Under the Agricultural Finance line of business, Farmer Mac has two segments – Farm & Ranch and Corporate AgFinance. The segments are characterized by similarities in risk attributes and the manner in which Farmer Mac monitors and assesses credit risk.

31

The following table includes loans held for investment and displays the composition of the loan balances as of September 30, 2023 and December 31, 2022:

Table 5.1

	As of September 30, 2023						As of December 31, 2022
	Unsecuritized		In Consolidated Trusts		Total		Unsecuritized		In Consolidated Trusts		Total
	(in thousands)
Agricultural Finance loans
Farm & Ranch	$	4,987,818	$	1,422,854	$	6,410,672	$	5,150,750	$	1,211,576	$	6,362,326
Corporate AgFinance	1,223,777		—		1,223,777		1,166,253		—		1,166,253
Total Agricultural Finance loans	6,211,595		1,422,854		7,634,449		6,317,003		1,211,576		7,528,579
Rural Infrastructure Finance loans	3,342,713		—		3,342,713		3,021,266		—		3,021,266
Total unpaid principal balance(1)	9,554,308		1,422,854		10,977,162		9,338,269		1,211,576		10,549,845
Unamortized premiums, discounts, fair value hedge basis adjustment, and other cost basis adjustments	(423,375)		—		(423,375)		(329,290)		—		(329,290)
Total loans	9,130,933		1,422,854		10,553,787		9,008,979		1,211,576		10,220,555
Allowance for losses	(16,162)		(452)		(16,614)		(14,629)		(460)		(15,089)
Total loans, net of allowance	$	9,114,771	$	1,422,402	$	10,537,173	$	8,994,350	$	1,211,116	$	10,205,466

(1)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, 2023 and December 31, 2022:

Table 5.2

	September 30, 2023		December 31, 2022
	Allowance for Losses		Allowance for Losses
	(in thousands)
Loans:
Agricultural Finance loans
Farm & Ranch	$	3,910	$	4,044
Corporate AgFinance	3,678		2,731
Total Agricultural Finance Loans	7,588		6,775
Rural Infrastructure Finance loans	9,026		8,314
Total	$	16,614	$	15,089

32

The following is a summary of the changes in the allowance for losses for the three and nine months ended September 30, 2023 and 2022:

Table 5.3

	September 30, 2023								September 30, 2022
	Agricultural Finance loans						Rural Infrastructure Finance loans(3)		Agricultural Finance loans						Rural Infrastructure Finance loans(3)
	Farm & Ranch(1)		Corporate AgFinance(2)		Total				Farm & Ranch(1)		Corporate AgFinance(2)		Total
	(in thousands)
For the Three Months Ended
Beginning Balance	$	3,935	$	7,367	$	11,302	$	5,446	$	2,265	$	1,750	$	4,015	$	8,388
(Release of)/provision for losses	(25)		(3,689)		(3,714)		3,580		(153)		334		181		418
Charge-offs	—		—		—		—		—		—		—		—
Ending Balance	$	3,910	$	3,678	$	7,588	$	9,026	$	2,112	$	2,084	$	4,196	$	8,806
For the Nine Months Ended
Beginning Balance	$	4,044	$	2,731	$	6,775	$	8,314	$	2,882	$	560	$	3,442	$	10,599
(Release of)/provision for losses	(134)		947		813		712		(686)		1,524		838		(1,793)
Charge-offs	—		—		—		—		(84)		—		(84)		—
Ending Balance	$	3,910	$	3,678	$	7,588	$	9,026	$	2,112	$	2,084	$	4,196	$	8,806

(1)As of September 30, 2023 and 2022, allowance for losses for Agricultural Finance Farm & Ranch loans includes $1.1 million and no allowance for collateral dependent assets secured by agricultural real estate, respectively.

(2)As of September 30, 2023 and 2022, allowance for losses for Agricultural Finance Corporate AgFinance loans includes $0.0 million and $1.7 million allowance for collateral dependent assets secured by agricultural real estate, respectively.

(3)As of both September 30, 2023 and 2022, allowance for losses for Rural Infrastructure Finance loans includes no allowance for collateral dependent assets.

The $3.6 million net provision to the allowance for the Rural Infrastructure Finance portfolio during the quarter ended September 30, 2023 was primarily attributable to a single telecommunications loan that was downgraded to substandard during the quarter. The $3.7 million net release from the allowance for the Agricultural Finance mortgage loan portfolio during the quarter ended September 30, 2023 was primarily attributable to the full payoff of a single collateral dependent storage and processing loan.

The $0.7 million net provision to the allowance for the Rural Infrastructure Finance portfolio during the nine months ended September 30, 2023 was primarily attributable to a single telecommunications loan that was downgraded to substandard during the most recent quarter. The $0.8 million net provision to the allowance for the Agricultural Finance mortgage loan portfolio during the nine months ended September 30, 2023 was primarily attributable to increased loan volume and certain risk rating downgrades.

The net provision to the allowance for Rural Infrastructure Finance loan losses of $0.4 million recorded

during third quarter 2022 was primarily attributable to net new loan volume. The $0.2 million net

provision to the allowance for the Agricultural Finance mortgage loan portfolio during third quarter 2022

was primarily attributable to the deterioration of a single agricultural storage and processing loan.

The $1.8 million net release from the allowance for the Rural Infrastructure Finance portfolio for the nine

months ended September 30, 2022 was primarily attributable to improvements in forecasts of future

economic conditions, and a first quarter risk rating upgrade on a single loan. The risk rating upgrade on

that loan reflected that borrower's successful securitization of its large payable that arose during the arctic

33

freeze that struck Texas in February 2021. The $0.8 million net provision to the allowance for the

Agricultural Finance mortgage loan portfolio for the nine months ended September 30, 2022 was

primarily attributable to a risk rating downgrade on a single agricultural storage and processing 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, 2023 and December 31, 2022:

Table 5.4

	As of September 30, 2023
	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 loans
Farm & Ranch	$	6,319,094	$	15,652	$	5,321	$	6,739	$	27,712	$	63,866	$	6,410,672
Corporate AgFinance	1,223,777		—		—		—		—		—		1,223,777
Total Agricultural Finance loans	7,542,871		15,652		5,321		6,739		27,712		63,866		7,634,449
Rural Infrastructure Finance loans	3,342,713		—		—		—		—		—		3,342,713
Total	$	10,885,584	$	15,652	$	5,321	$	6,739	$	27,712	$	63,866	$	10,977,162

(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 $23.8 million of nonaccrual loans for which there was no associated allowance. During the three and nine months ended September 30, 2023, Farmer Mac received $0.4 million and $1.9 million in interest on nonaccrual loans, respectively.

	As of December 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 loans
Farm & Ranch	$	6,287,326	$	10,066	$	392	$	1,140	$	11,598	$	63,402	$	6,362,326
Corporate AgFinance	1,150,690		—		—		—		—		15,563		1,166,253
Total Agricultural Finance loans	7,438,016		10,066		392		1,140		11,598		78,965		7,528,579
Rural Infrastructure Finance loans	3,021,266		—		—		—		—		—		3,021,266
Total	$	10,459,282	$	10,066	$	392	$	1,140	$	11,598	$	78,965	$	10,549,845

(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 $22.0 million of nonaccrual loans for which there was no associated allowance. During the year ended December 31, 2022, Farmer Mac received $5.6 million in interest on nonaccrual loans.

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Credit Quality Indicators

The following tables present credit quality indicators related to Agricultural Finance mortgage loans and Rural Infrastructure Finance loans held as of September 30, 2023 and December 31, 2022, by year of origination:

Table 5.5

	As of September 30, 2023
	Year of Origination:
	2023		2022		2021		2020		2019		Prior		Revolving Loans - Amortized Cost Basis		Total
	(in thousands)
Agricultural Finance - Farm & Ranch loans(1):
Internally Assigned Risk Rating:
Acceptable	$	346,745	$	1,143,457	$	1,633,550	$	1,129,203	$	317,213	$	1,077,958	$	379,009	$	6,027,135
Special mention(2)	49,039		48,891		61,030		12,530		19,164		29,464		13,430		233,548
Substandard(3)	520		20,900		7,514		21,626		23,690		64,942		10,797		149,989
Total	$	396,304	$	1,213,248	$	1,702,094	$	1,163,359	$	360,067	$	1,172,364	$	403,236	$	6,410,672
For the Three Months Ended September 30, 2023:
Current period charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
For the Nine Months Ended September 30, 2023:
Current period 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.

35

	As of September 30, 2023
	Year of Origination:
	2023		2022		2021		2020		2019		Prior		Revolving Loans - Amortized Cost Basis		Total
	(in thousands)
Agricultural Finance - Corporate AgFinance(1):
Internally Assigned Risk Rating:
Acceptable	$	180,030	$	98,524	$	262,572	$	123,685	$	99,696	$	113,758	$	240,977	$	1,119,242
Special mention(2)	—		14,625		15,632		50,856		20,347		1,021		2,054		104,535
Substandard(3)	—		—		—		—		—		—		—		—
Total	$	180,030	$	113,149	$	278,204	$	174,541	$	120,043	$	114,779	$	243,031	$	1,223,777
For the Three Months Ended September 30, 2023:
Current period charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
For the Nine Months Ended September 30, 2023:
Current period 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, 2023
	Year of Origination:
	2023		2022		2021		2020		2019		Prior		Revolving Loans - Amortized Cost Basis		Total
	(in thousands)
Rural Infrastructure Finance loans(1):
Internally Assigned Risk Rating:
Acceptable	$	450,241	$	694,635	$	189,385	$	598,689	$	711,794	$	610,062	$	58,413	$	3,313,219
Special mention(2)	—		—		—		—		—		—		—		—
Substandard(3)	—		29,494		—		—		—		—		—		29,494
Total	$	450,241	$	724,129	$	189,385	$	598,689	$	711,794	$	610,062	$	58,413	$	3,342,713
For the Three Months Ended September 30, 2023:
Current period charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
For the Nine Months Ended September 30, 2023:
Current period 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.

36

	As of December 31, 2022
	Year of Origination:
	2022		2021		2020		2019		2018		Prior		Revolving Loans - Amortized Cost Basis		Total
	(in thousands)
Agricultural Finance - Farm & Ranch loans(1):
Internally Assigned Risk Rating:
Acceptable	$	1,157,829	$	1,704,547	$	1,187,474	$	360,704	$	242,491	$	947,535	$	385,503	$	5,986,083
Special mention(2)	91,099		68,260		25,629		11,254		5,325		17,797		2,452		221,816
Substandard(3)	3,094		8,814		22,976		23,937		17,845		67,654		10,107		154,427
Total	$	1,252,022	$	1,781,621	$	1,236,079	$	395,895	$	265,661	$	1,032,986	$	398,062	$	6,362,326
For the Three Months Ended September 30, 2022:
Current period charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
For the Nine Months Ended September 30, 2022:
Current period 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 December 31, 2022
	Year of Origination:
	2022		2021		2020		2019		2018		Prior		Revolving Loans - Amortized Cost Basis		Total
	(in thousands)
Agricultural Finance - Corporate AgFinance loans(1):
Internally Assigned Risk Rating:
Acceptable	$	145,263	$	299,729	$	221,560	$	108,230	$	76,454	$	44,827	$	232,107	$	1,128,170
Special mention(2)	—		—		—		20,698		—		—		2,145		22,843
Substandard(3)	—		—		4,598		—		—		—		10,642		15,240
Total	$	145,263	$	299,729	$	226,158	$	128,928	$	76,454	$	44,827	$	244,894	$	1,166,253
For the Three Months Ended September 30, 2022:
Current period charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
For the Nine Months Ended September 30, 2022:
Current period 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.

37

	As of December 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	$	741,021	$	220,420	$	629,223	$	739,270	$	7,932	$	649,830	$	33,570	$	3,021,266
Special mention(2)	—		—		—		—		—		—		—		—
Substandard(3)	—		—		—		—		—		—		—		—
Total	$	741,021	$	220,420	$	629,223	$	739,270	$	7,932	$	649,830	$	33,570	$	3,021,266
For the Three Months Ended September 30, 2022:
Current period charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
For the Nine Months Ended September 30, 2022:
Current period 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.

6.GUARANTEES AND COMMITMENTS

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, 2023 and December 31, 2022, 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, 2023		As of December 31, 2022
	(in thousands)
Agricultural Finance
Farmer Mac Guaranteed Securities	$	455,681	$	500,953
Rural Infrastructure Finance
Farmer Mac Guaranteed Securities	1,098		1,169
Total off-balance sheet Farmer Mac Guaranteed Securities	$	456,779	$	502,122

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:

38

Table 6.2

	For the Nine Months Ended
	September 30, 2023		September 30, 2022
	(in thousands)
Proceeds from new securitizations	$	222,188	$	305,410
Guarantee fees received	1,280		1,464

    

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, 2023		As of December 31, 2022
	(dollars in thousands)
Guarantee and commitment obligation	$	6,053	$	6,461
Weighted average remaining maturity:
Farmer Mac Guaranteed Securities	22.1 years		21.4 years
AgVantage Securities	1.2 years		2.0 years

Long-Term Standby Purchase Commitments

Farmer Mac has recorded a liability for its obligation to stand ready under the commitment 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, 2023		As of December 31, 2022
	(dollars in thousands)
Guarantee and commitment obligation(1)	$	41,554	$	40,121
Maximum principal amount	3,613,934		3,423,155
Weighted-average remaining maturity	14.7 years		15.3 years

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

39

Reserve for Losses - LTSPCs and Farmer Mac Guaranteed Securities

The following table is a summary, by asset type, of the reserve for losses as of September 30, 2023 and December 31, 2022:

Table 6.5

	September 30, 2023		December 31, 2022
	Reserve for Losses		Reserve for Losses
	(in thousands)
Agricultural Finance	$	1,412	$	819
Rural Infrastructure Finance	248		614
Total	$	1,660	$	1,433

The following is a summary of the changes in the reserve for losses for the three and nine month periods ended September 30, 2023 and 2022:

Table 6.6

	For the Three Months Ended				For the Nine Months Ended
	September 30, 2023		September 30, 2022		September 30, 2023		September 30, 2022
	Reserve for Losses		Reserve for Losses		Reserve for Losses		Reserve for Losses
	(in thousands)				(in thousands)
Agricultural Finance
Beginning Balance	$	1,471	$	882	$	819	$	1,068
(Release of)/provision for losses	(59)		(139)		593		(325)
Ending Balance	$	1,412	$	743	$	1,412	$	743
Rural Infrastructure Finance
Beginning Balance	$	234	$	795	$	614	$	882
Provision for/(release of) losses	14		(28)		(366)		(115)
Ending Balance	$	248	$	767	$	248	$	767

The provision for the reserve for losses in the Agricultural Finance LTSPC portfolio recorded during the nine months ended September 30, 2023 was primarily due to an updated estimate of expected losses based on additional available loss-given-default industry data. The release from the reserve for losses in the Rural Infrastructure Finance LTSPC portfolio recorded during the nine months ended September 30, 2023 was primarily due to an updated estimate of expected losses based on additional available loss-given-default industry data.

The allowance for both the Agricultural Finance and Rural Infrastructure Finance LTSPC and Farmer Mac Guaranteed portfolios recorded during the three and nine months ended September 30, 2022 remained relatively constant.

The following table presents the unpaid principal balances by delinquency status of Agricultural Finance and Rural Infrastructure loans underlying LTSPCs and Farmer Mac Guaranteed Securities as of September 30, 2023 and December 31, 2022:

40

Table 6.7

	As of September 30, 2023
	Current		30-59 Days		60-89 Days		90 Days and Greater(1)		Total Past Due		Total Loans
	(in thousands)
Agricultural Finance:	$	3,368,620	$	5,196	$	3,573	$	2,840	$	11,609	$	3,380,229
Rural Infrastructure Finance:	487,517		—		—		—		—		487,517
Total	$	3,856,137	$	5,196	$	3,573	$	2,840	$	11,609	$	3,867,746

(1)Includes loans underlying off-balance sheet Farmer Mac 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, 2022
	Current		30-59 Days		60-89 Days		90 Days and Greater(1)		Total Past Due		Total Loans
	(in thousands)
Agricultural Finance:	$	3,174,939	$	11,614	$	622	$	3,817	$	16,053	$	3,190,992
Rural Infrastructure Finance:	523,192		—		—		—		—		523,192
Total	$	3,698,131	$	11,614	$	622	$	3,817	$	16,053	$	3,714,184

(1)Includes loans underlying off-balance sheet Farmer Mac 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.

Credit Quality Indicators

The following tables present credit quality indicators related to Agricultural Finance and Rural Infrastructure loans underlying LTSPCs and Farmer Mac Guaranteed Securities as of September 30, 2023 and December 31, 2022, by year of origination:

41

Table 6.8

	As of September 30, 2023
	Year of Origination:
	2023		2022		2021		2020		2019		Prior		Revolving Loans - Amortized Cost Basis		Total
	(in thousands)
Agricultural Finance:
Internally Assigned Risk Rating:
Acceptable	$	148,802	$	243,690	$	513,841	$	535,172	$	272,257	$	1,228,548	$	362,825	$	3,305,135
Special mention(1)	—		2,568		1,294		877		—		39,657		527		44,923
Substandard(2)	—		—		—		131		1,541		27,236		1,263		30,171
Total	$	148,802	$	246,258	$	515,135	$	536,180	$	273,798	$	1,295,441	$	364,615	$	3,380,229
For the Three Months Ended September 30, 2023:
Current period charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
For the Nine Months Ended September 30, 2023:
Current period 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, 2023
	Year of Origination:
	2023		2022		2021		2020		2019		Prior		Revolving Loans - Amortized Cost Basis		Total
	(in thousands)
Rural Infrastructure Finance:
Internally Assigned Risk Rating:
Acceptable	$	—	$	—	$	—	$	—	$	—	$	426,504	$	61,013	$	487,517
Special mention(1)	—		—		—		—		—		—		—		—
Substandard(2)	—		—		—		—		—		—		—		—
Total	$	—	$	—	$	—	$	—	$	—	$	426,504	$	61,013	$	487,517
For the Three Months Ended September 30, 2023:
Current period charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
For the Nine Months Ended September 30, 2023:
Current period 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.

42

	As of December 31, 2022
	Year of Origination:
	2022		2021		2020		2019		2018		Prior		Revolving Loans - Amortized Cost Basis		Total
	(in thousands)
Agricultural Finance:
Internally Assigned Risk Rating:
Acceptable	$	202,998	$	496,269	$	535,798	$	254,293	$	207,379	$	1,107,834	$	296,508	$	3,101,079
Special mention(1)	—		1,319		1,778		—		1,198		42,680		3,205		50,180
Substandard(2)	—		—		176		—		3,588		32,597		3,372		39,733
Total	$	202,998	$	497,588	$	537,752	$	254,293	$	212,165	$	1,183,111	$	303,085	$	3,190,992
For the Three Months Ended September 30, 2022:
Current period charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
For the Nine Months Ended September 30, 2022:
Current period 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, 2022
	Year of Origination:
	2022		2021		2020		2019		2018		Prior		Revolving Loans - Amortized Cost Basis		Total
	(in thousands)
Rural Infrastructure Finance:
Internally Assigned Risk Rating:
Acceptable	$	—	$	—	$	—	$	—	$	—	$	470,659	$	52,533	$	523,192
Special mention(1)	—		—		—		—		—		—		—		—
Substandard(2)	—		—		—		—		—		—		—		—
Total	$	—	$	—	$	—	$	—	$	—	$	470,659	$	52,533	$	523,192
For the Three Months Ended September 30, 2022:
Current period charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
For the Nine Months Ended September 30, 2022:
Current period 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.

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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 year or less, whereas medium-term notes generally have maturities of 0.5 years to 25.0 years.

The following tables set forth information related to Farmer Mac's borrowings as of September 30, 2023 and December 31, 2022:

Table 7.1

	September 30, 2023
	Outstanding as of September 30				Average Outstanding During the Quarter
	Amount		Weighted- Average Rate		Amount		Weighted- Average Rate
	(dollars in thousands)
Due within one year:
Discount notes	$	1,535,856	5.30	%	$	942,297	4.92	%
Medium-term notes	947,466		4.75	%	2,085,249		4.00	%
Current portion of medium-term notes	5,472,893		2.49	%
Total due within one year	$	7,956,215	3.30	%
Due after one year:
Medium-term notes due in:
Two years	$	5,231,168	3.05	%
Three years	3,243,230		2.21	%
Four years	3,297,724		2.64	%
Five years	2,306,430		4.07	%
Thereafter	3,567,720		2.80	%
Total due after one year	$	17,646,272	2.90	%
Total principal net of discounts	$	25,602,487	3.03	%
Hedging adjustments	(478,942)
Total	$	25,123,545

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	December 31, 2022
	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	$	565,578	3.91	%	$	1,325,026	0.96	%
Medium-term notes	2,547,733		3.54	%	1,442,932		2.11	%
Current portion of medium-term notes	4,920,864		1.49	%
Total due within one year	$	8,034,175	2.31	%
Due after one year:
Medium-term notes due in:
Two years	$	4,072,740	1.71	%
Three years	3,506,480		2.10	%
Four years	2,967,625		1.44	%
Five years	2,361,197		3.12	%
Thereafter	4,057,982		2.60	%
Total due after one year	$	16,966,024	2.15	%
Total principal net of discounts	$	25,000,199	2.20	%
Hedging adjustments	(531,086)
Total	$	24,469,113

The maximum amount of Farmer Mac's discount notes outstanding at any month end during the nine months ended September 30, 2023 and 2022 was $1.5 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 2023 as of September 30, 2023:

Table 7.2

Debt Callable in 2023 as of September 30, 2023, by Maturity
	Amount		Weighted-Average Rate
	(dollars in thousands)
Maturity:
2024	$	816,830	3.66	%
2025	664,046		2.33	%
2026	1,012,989		1.57	%
2027	560,204		2.27	%
Thereafter	1,161,379		2.51	%
Total	$	4,215,448	2.45	%

45

The following schedule summarizes the earliest interest rate reset date, or debt maturities, of total borrowings outstanding as of September 30, 2023, 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:
2023	$	5,468,108	4.57	%
2024	5,454,586		2.62	%
2025	4,222,333		2.60	%
2026	3,319,847		1.81	%
2027	2,573,406		3.14	%
Thereafter	4,564,207		2.87	%
Total principal net of discounts	$	25,602,487	3.03	%

During the nine months ended September 30, 2023 and 2022, Farmer Mac called $111.0 million and $26.0 million of callable medium-term notes, respectively.

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 to fulfill 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, 2023, Farmer Mac had not used this borrowing authority.

Gains on Repurchases of Outstanding Debt

No outstanding debt repurchases were made in the nine months ended September 30, 2023 and 2022.

8.EQUITY

Common Stock

During each of the first, second, and third quarters 2023, Farmer Mac paid a quarterly dividend of $1.10 per share on all classes of its common stock. For each quarter in 2022, Farmer Mac paid a quarterly dividend of $0.95 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

46

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. In March 2021, Farmer Mac's board of directors reinstated the share repurchase program on its previous terms (with a remaining authorization of up to $9.8 million in stock repurchases) and extended the expiration date of the program to March 2023. Farmer Mac did not repurchase any shares of its Class C non-voting common stock during that two-year period. In February 2023, Farmer Mac's board of directors renewed the share repurchase program on its previous terms (with a remaining authorization of up to $9.8 million in stock repurchases) and extended the expiration date of the program to February 2025. Farmer Mac did not repurchase any shares of its Class C non-voting common stock during third quarter 2023. As of September 30, 2023, 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.

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, 2023 and December 31, 2022, 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, 2023, Farmer Mac's minimum capital requirement was $840.1 million and its core capital level was $1.4 billion, which was $581.1 million above the minimum capital requirement as of that date. As of December 31, 2022, Farmer Mac's minimum capital requirement was $805.9 million and its core capital level was $1.3 billion, which was $516.9 million above the minimum capital requirement as of that date.

In accordance with a rule of the Farm Credit Administration ("FCA") 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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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, 2023 and December 31, 2022, 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, 2023
	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	$	—	$	—	$	19,033	$	19,033
Floating rate Government/GSE guaranteed mortgage-backed securities	—		2,465,545		—		2,465,545
Fixed rate GSE guaranteed mortgage-backed securities	—		1,386,378		—		1,386,378
Floating rate U.S. Treasuries	50,011		—		—		50,011
Fixed rate U.S. Treasuries	952,447		—		—		952,447
Total Available-for-sale Investment Securities	1,002,458		3,851,923		19,033		4,873,414
Farmer Mac Guaranteed Securities:
Available-for-sale:
AgVantage	—		—		5,048,708		5,048,708
Farmer Mac Guaranteed Securities	—		—		9,989		9,989
Total Farmer Mac Guaranteed Securities	—		—		5,058,697		5,058,697
USDA Securities:
Trading	—		—		1,302		1,302
Total USDA Securities	—		—		1,302		1,302
Financial derivatives	81		28,774		—		28,855
Guarantee Asset	—		—		5,963		5,963
Total Assets at fair value	$	1,002,539	$	3,880,697	$	5,084,995	$	9,968,231
Liabilities:
Financial derivatives	$	12	$	188,350	$	—	$	188,362
Total Liabilities at fair value	$	12	$	188,350	$	—	$	188,362

(1) Level 3 assets represent 18% of total assets and 50% of financial instruments measured at fair value.

48

Assets and Liabilities Measured at Fair Value as of December 31, 2022
	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	$	—	$	—	$	19,027	$	19,027
Floating rate Government/GSE guaranteed mortgage-backed securities	—		2,392,540		—		2,392,540
Fixed rate GSE guaranteed mortgage-backed securities	—		1,048,386		—		1,048,386
Fixed rate U.S. Treasuries	1,119,611		—		—		1,119,611
Total Available-for-sale Investment Securities	1,119,611		3,440,926		19,027		4,579,564
Farmer Mac Guaranteed Securities:
Available-for-sale:
AgVantage	—		—		7,599,379		7,599,379
Farmer Mac Guaranteed Securities	—		—		7,847		7,847
Total Farmer Mac Guaranteed Securities	—		—		7,607,226		7,607,226
USDA Securities:
Trading	—		—		1,767		1,767
Total USDA Securities	—		—		1,767		1,767
Financial derivatives	—		37,409		—		37,409
Guarantee Asset	—		—		4,467		4,467
Total Assets at fair value	$	1,119,611	$	3,478,335	$	7,632,487	$	12,230,433
Liabilities:
Financial derivatives	$	142	$	175,184	$	—	$	175,326
Total Liabilities at fair value	$	142	$	175,184	$	—	$	175,326

(1) Level 3 assets represent 28% of total assets and 62% of financial instruments measured at fair value.

There were no material assets or liabilities measured at fair value on a non-recurring basis as of September 30, 2023 or December 31, 2022.

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 nine months ended September 30, 2023 and 2022, there were no transfers within the fair value hierarchy.

49

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, 2023 and 2022.

Table 9.2

Level 3 Assets and Liabilities Measured at Fair Value for the Three Months Ended September 30, 2023
	Beginning Balance		Purchases		Settlements		Allowance for Losses		Realized and unrealized (losses)/gains included in Income		Unrealized gains included in Other Comprehensive Income		Transfers Out(1)		Ending Balance
	(in thousands)
Recurring:
Assets:
Investment Securities:
Available-for-sale:
Floating rate auction-rate certificates backed by Government guaranteed student loans	$	19,032	$	—	$	—	$	1	$	—	$	—	$	—	$	19,033
Total available-for-sale	19,032		—		—		1		—		—		—		19,033
Farmer Mac Guaranteed Securities:
Available-for-sale:
AgVantage	7,737,810		100,000		(6,875)		133		(107,917)		9,653		(2,684,096)		5,048,708
Farmer Mac Guaranteed Securities	7,605		—		(169)		—		—		2,553		—		9,989
Total available-for-sale	7,745,415		100,000		(7,044)		133		(107,917)		12,206		(2,684,096)		5,058,697
USDA Securities:
Trading	1,348		—		(44)		—		(2)		—		—		1,302
Total USDA Securities	1,348		—		(44)		—		(2)		—		—		1,302
Guarantee and commitment obligations:
Guarantee Asset	4,331		—		(84)		—		1,716		—		—		5,963
Total Guarantee and commitment obligations	4,331		—		(84)		—		1,716		—		—		5,963
Total Assets at fair value	$	7,770,126	$	100,000	$	(7,172)	$	134	$	(106,203)	$	12,206	$	(2,684,096)	$	5,084,995

(1) Includes $2.7 billion of AgVantage Securities transferred from available-for-sale to held-to-maturity on July 1, 2023.

50

Level 3 Assets and Liabilities Measured at Fair Value for the Three Months Ended September 30, 2022
	Beginning Balance		Purchases		Settlements		Allowance for Losses		Realized and unrealized 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	$	19,061	$	—	$	—	$	11	$	—	$	171	$	19,243
Total available-for-sale	19,061		—		—		11		—		171		19,243
Farmer Mac Guaranteed Securities:
Available-for-sale:
AgVantage	6,440,396		1,370,000		(627,131)		(11)		(204,450)		(13,043)		6,965,761
Farmer Mac Guaranteed Securities	9,816		—		(468)		—		—		(1,107)		8,241
Total available-for-sale	6,450,212		1,370,000		(627,599)		(11)		(204,450)		(14,150)		6,974,002
USDA Securities:
Trading	2,275		—		(383)		—		(41)		—		1,851
Total USDA Securities	2,275		—		(383)		—		(41)		—		1,851
Guarantee and commitment obligations:
Guarantee Asset	5,636		—		(229)		—		(715)		—		4,692
Total Guarantee and commitment obligations	5,636		—		(229)		—		(715)		—		4,692
Total Assets at fair value	$	6,477,184	$	1,370,000	$	(628,211)	$	—	$	(205,206)	$	(13,979)	$	6,999,788

51

Level 3 Assets and Liabilities Measured at Fair Value for the Nine Months Ended September 30, 2023
	Beginning Balance		Purchases		Settlements		Allowance for Losses		Realized and unrealized (losses)/gains included in Income		Unrealized gains included in Other Comprehensive Income		Transfers Out(1)		Ending Balance
	(in thousands)
Recurring:
Assets:
Investment Securities:
Available-for-sale:
Floating rate auction-rate certificates backed by Government guaranteed student loans	$	19,027	$	—	$	—	$	6	$	—	$	—	$	—	$	19,033
Total available-for-sale	19,027		—		—		6		—		—		—		19,033
Farmer Mac Guaranteed Securities:
Available-for-sale:
AgVantage	7,599,379		1,639,650		(1,405,674)		173		(116,447)		15,723		(2,684,096)		5,048,708
Farmer Mac Guaranteed Securities	7,847		—		(1,043)		—		—		3,185		—		9,989
Total available-for-sale	7,607,226		1,639,650		(1,406,717)		173		(116,447)		18,908		(2,684,096)		5,058,697
USDA Securities:
Trading	1,767		—		(479)		—		14		—		—		1,302
Total USDA Securities	1,767		—		(479)		—		14		—		—		1,302
Guarantee and commitment obligations:
Guarantee Asset	4,467		—		(506)		—		2,002		—		—		5,963
Total Guarantee and commitment obligations	4,467		—		(506)		—		2,002		—		—		5,963
Total Assets at fair value	$	7,632,487	$	1,639,650	$	(1,407,702)	$	179	$	(114,431)	$	18,908	$	(2,684,096)	$	5,084,995

(1) Includes $2.7 billion of AgVantage Securities transferred from available-for-sale to held-to-maturity on July 1, 2023.

52

Level 3 Assets and Liabilities Measured at Fair Value for the Nine Months Ended September 30, 2022
	Beginning Balance		Purchases		Settlements		Allowance for Losses		Realized and unrealized losses included in Income		Unrealized 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	$	19,254	$	—	$	—	$	14	$	—	$	(25)	$	19,243
Total available-for-sale	19,254		—		—		14		—		(25)		19,243
Farmer Mac Guaranteed Securities:
Available-for-sale:
AgVantage	6,316,145		2,722,750		(1,435,758)		(345)		(564,242)		(72,789)		6,965,761
Farmer Mac Guaranteed Securities	12,414		—		(1,205)		—		—		(2,968)		8,241
Total available-for-sale	6,328,559		2,722,750		(1,436,963)		(345)		(564,242)		(75,757)		6,974,002
USDA Securities:
Trading	4,401		—		(2,475)		—		(75)		—		1,851
Total USDA Securities	4,401		—		(2,475)		—		(75)		—		1,851
Guarantee and commitment obligations:
Guarantee Asset	6,237		—		(672)		—		(873)		—		4,692
Total Guarantee and commitment obligations	6,237		—		(672)		—		(873)		—		4,692
Total Assets at fair value	$	6,358,451	$	2,722,750	$	(1,440,110)	$	(331)	$	(565,190)	$	(75,782)	$	6,999,788

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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, 2023 and December 31, 2022:

Table 9.3

	As of September 30, 2023
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	$	19,033	Indicative bids	Range of broker quotes	96.8% - 96.8% (96.8%)
Farmer Mac Guaranteed Securities:
AgVantage	$	5,048,708	Discounted cash flow	Discount rate	5.4% - 6.0% (5.7%)
Farmer Mac Guaranteed Securities	$	9,989	Discounted cash flow	Discount rate	8.5%
				CPR	3%
USDA Securities	$	1,302	Discounted cash flow	Discount rate	5.9% - 6.1% (6.0%)
				CPR	11% - 11% (11%)
Guarantee Asset	$	5,963	Discounted cash flow	Discount rate	8.5%
				CPR	3%

	As of December 31, 2022
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	$	19,027	Indicative bids	Range of broker quotes	96.8% - 96.8% (96.8%)
Farmer Mac Guaranteed Securities:
AgVantage	$	7,599,379	Discounted cash flow	Discount rate	4.7% - 6.1% (5.1%)
Farmer Mac Guaranteed Securities	$	7,847	Discounted cash flow	Discount rate	4.8% - 5.3% (5.1%)
				CPR	8%
USDA Securities	$	1,767	Discounted cash flow	Discount rate	5.1% - 5.7% (5.3%)
				CPR	19% - 27% (25%)
Guarantee Asset	$	4,467	Discounted cash flow	Discount rate	5.4% - 5.9% (5.7%)
				CPR	8%

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

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securities because they generally have fixed maturity dates when the secured general obligations are due and do not 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, 2023 and December 31, 2022:

Table 9.4

	As of September 30, 2023				As of December 31, 2022
	Fair Value		Carrying Amount		Fair Value		Carrying Amount
	(in thousands)
Financial assets:
Cash and cash equivalents	$	782,318	$	782,318	$	861,002	$	861,002
Investment securities	4,925,183		4,924,253		4,630,701		4,628,268
Farmer Mac Guaranteed Securities	9,170,053		9,216,111		8,573,781		8,628,380
USDA Securities	1,933,529		2,323,657		2,099,445		2,411,601
Loans	9,718,846		10,537,173		9,666,710		10,205,466
Financial derivatives	28,855		28,855		37,409		37,409
Guarantee and commitment fees receivable	58,819		49,809		50,653		47,151
Financial liabilities:
Notes payable	24,224,819		25,123,545		23,591,330		24,469,113
Debt securities of consolidated trusts held by third parties	1,209,757		1,334,014		1,106,837		1,181,948
Financial derivatives	188,362		188,362		175,326		175,326
Guarantee and commitment obligations	56,617		47,607		50,083		46,582

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 the market standard methodology of netting the discounted future fixed cash payments (or

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receipts) and the discounted expected variable cash receipts (or payments) 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.

10.BUSINESS SEGMENT REPORTING

The following table presents the alignment of the Farmer Mac's seven segments:

Agricultural Finance		Rural Infrastructure Finance		Treasury
Farm & Ranch	Corporate AgFinance	Rural Utilities	Renewable Energy	Funding	Investments	Corporate

The financial information presented below reflects the accounts of Farmer Mac and its subsidiaries on a

consolidated basis. Accordingly, the core earnings for Farmer Mac's segments would differ from any stand-alone financial statements of Farmer Mac's subsidiaries. These differences would be due to various factors, including the exclusion of unrealized gains and losses related to fair value changes of trading assets and financial derivatives, as well as the allocation of certain expenses such as operating expenses, dividends and interest expense related to the issuance of capital and the issuance of indebtedness managed at the corporate level.

The following tables present core earnings for Farmer Mac's segments and a reconciliation to consolidated net income for the three and nine months ended September 30, 2023 and 2022.

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Table 10.1

Core Earnings by Business Segment
For the Three Months Ended September 30, 2023
	Agricultural Finance				Rural Infrastructure				Treasury				Corporate
	Farm & Ranch		Corporate AgFinance		Rural  Utilities		Renewable Energy		Funding		Investments				Reconciling Adjustments			Consolidated Net Income
	(in thousands)
Net interest income	$	33,735	$	8,250	$	6,393	$	1,150	$	37,642	$	473	$	—	$	—		$	87,643
Less: reconciling adjustments(1)(2)(3)	(1,017)		—		(31)		—		(3,230)		59		—		4,219			—
Net effective spread	32,718		8,250		6,362		1,150		34,412		532		—		4,219			—
Guarantee and commitment fees	4,447		78		279		24		—		—		—		692			5,520
Other income/(expense)(3)	807		—		—		—		3		6		240		2,884			3,940
Total revenues	37,972		8,328		6,641		1,174		34,415		538		240		7,795			97,103
Release of/(provision for) losses	13		3,694		(3,504)		(66)		—		(1)		—		—			136
Release of/(provision for) reserve for losses	58		—		(13)		—		—		—		—		—			45
Operating expenses	—		—		—		—		—		—		(24,034)		—			(24,034)
Total non-interest expense	58		—		(13)		—		—		—		(24,034)		—			(23,989)
Core earnings before income taxes	38,043		12,022		3,124		1,108		34,415		537		(23,794)		7,795		(4)	73,250
Income tax (expense)/benefit	(7,989)		(2,525)		(656)		(233)		(7,226)		(113)		5,267		(1,638)			(15,113)
Core earnings before preferred stock dividends	30,054		9,497		2,468		875		27,189		424		(18,527)		6,157		(4)	58,137
Preferred stock dividends	—		—		—		—		—		—		(6,792)		—			(6,792)
Segment core earnings/(losses)	$	30,054	$	9,497	$	2,468	$	875	$	27,189	$	424	$	(25,319)	$	6,157	(4)	$	51,345
Total Assets	$	14,660,371	$	1,619,664	$	6,648,693	$	320,572	$	—	$	4,866,969	$	195,112	$	—		$	28,311,381
Total on- and off-balance sheet program assets at principal balance	$	18,461,835	$	1,741,306	$	7,118,295	$	330,575	$	—	$	—	$	—	$	—		$	27,652,011

(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 "Gains on financial derivatives" on the consolidated financial statements, to determine the effective funding cost for each operating segment.

(4)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, 2022
	Agricultural Finance				Rural Infrastructure				Treasury				Corporate
	Farm & Ranch		Corporate AgFinance		Rural  Utilities		Renewable Energy		Funding		Investments				Reconciling Adjustments			Consolidated Net Income
	(in thousands)
Net interest income	$	34,173	$	7,600	$	4,253	$	705	$	23,913	$	(2,791)	$	—	$	—		$	67,853
Less: reconciling adjustments(1)(2)(3)	(830)		—		(33)		—		(1,349)		—		—		2,212			—
Net effective spread	33,343		7,600		4,220		705		22,564		(2,791)		—		2,212			—
Guarantee and commitment fees	3,833		46		309		13		—		—		—		(1,558)			2,643
Other income/(expense)(3)	469		4		—		—		—		—		—		909			1,382
Total revenues	37,645		7,650		4,529		718		22,564		(2,791)		—		1,563			71,878
Release of/(provision for) losses	93		(333)		(414)		26		—		11		—		—			(617)
Release of reserve for losses	139		—		28		—		—		—		—		—			167
Operating expenses	—		—		—		—		—		—		(19,379)		—			(19,379)
Total non-interest expense	139		—		28		—		—		—		(19,379)		—			(19,212)
Core earnings before income taxes	37,877		7,317		4,143		744		22,564		(2,780)		(19,379)		1,563		(4)	52,049
Income tax (expense)/benefit	(7,953)		(1,536)		(869)		(156)		(4,739)		584		4,366		(328)			(10,631)
Core earnings before preferred stock dividends	29,924		5,781		3,274		588		17,825		(2,196)		(15,013)		1,235		(4)	41,418
Preferred stock dividends	—		—		—		—		—		—		(6,791)		—			(6,791)
Segment core earnings/(losses)	$	29,924	$	5,781	$	3,274	$	588	$	17,825	$	(2,196)	$	(21,804)	$	1,235	(4)	$	34,627
Total Assets	$	14,113,686	$	1,558,139	$	5,779,300	$	186,832	$	—	$	4,608,868	$	194,763	$	—		$	26,441,588
Total on- and off-balance sheet program assets at principal balance	$	17,199,347	$	1,634,786	$	6,296,263	$	196,242	$	—	$	—	$	—	$	—		$	25,326,638

(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 "Gains on financial derivatives" on the consolidated financial statements, to determine the effective funding cost for each operating segment.

(4)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, 2023
	Agricultural Finance				Rural Infrastructure				Treasury				Corporate
	Farm & Ranch		Corporate AgFinance		Rural  Utilities		Renewable Energy		Funding		Investments				Reconciling Adjustments			Consolidated Net Income
	(in thousands)
Net interest income	$	102,671	$	22,842	$	17,772	$	3,108	$	98,588	$	397	$	—	$	—		$	245,378
Less: reconciling adjustments(1)(2)(3)	(3,100)		—		(95)		—		60		186		—		2,949			—
Net effective spread	99,571		22,842		17,677		3,108		98,648		583		—		2,949			—
Guarantee and commitment fees	12,960		193		841		69		—		—		—		(1,121)			12,942
Other income/(expense)(3)	2,216		12		—		—		3		17		284		5,484			8,016
Total revenues	114,747		23,047		18,518		3,177		98,651		600		284		7,312			266,336
Release of/(provision for) losses	136		(934)		(652)		(38)		—		4		—		—			(1,484)
(Provision for)/release of reserve for losses	(594)		—		367		—		—		—		—		—			(227)
Operating expenses	—		—		—		—		—		—		(71,935)		—			(71,935)
Total non-interest expense	(594)		—		367		—		—		—		(71,935)		—			(72,162)
Core earnings before income taxes	114,289		22,113		18,233		3,139		98,651		604		(71,651)		7,312		(4)	192,690
Income tax (expense)/benefit	(24,001)		(4,644)		(3,829)		(659)		(20,716)		(127)		15,206		(1,536)			(40,306)
Core earnings before preferred stock dividends	90,288		17,469		14,404		2,480		77,935		477		(56,445)		5,776		(4)	152,384
Preferred stock dividends	—		—		—		—		—		—		(20,374)		—			(20,374)
Segment core earnings/(losses)	$	90,288	$	17,469	$	14,404	$	2,480	$	77,935	$	477	$	(76,819)	$	5,776	(4)	$	132,010
Total Assets	$	14,660,371	$	1,619,664	$	6,648,693	$	320,572	$	—	$	4,866,969	$	195,112	$	—		$	28,311,381
Total on- and off-balance sheet program assets at principal balance	$	18,461,835	$	1,741,306	$	7,118,295	$	330,575	$	—	$	—	$	—	$	—		$	27,652,011

(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 "Gains on financial derivatives" on the consolidated financial statements, to determine the effective funding cost for each operating segment.

(4)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, 2022
	Agricultural Finance				Rural Infrastructure				Treasury				Corporate
	Farm & Ranch		Corporate AgFinance		Rural  Utilities		Renewable Energy		Funding		Investments				Reconciling Adjustments			Consolidated Net Income
	(in thousands)
Net interest income	$	99,197	$	21,738	$	11,218	$	1,548	$	67,673	$	(4,069)	$	—	$	—		$	197,305
Less: reconciling adjustments(1)(2)(3)	(2,910)		—		(106)		—		(9,863)		—		—		12,879			—
Net effective spread	96,287		21,738		11,112		1,548		57,810		(4,069)		—		12,879			—
Guarantee and commitment fees	12,387		108		929		43		—		—		—		(3,916)			9,551
Other income/(expense)(3)	1,030		261		—		—		—		—		3		21,987			23,281
Total revenues	109,704		22,107		12,041		1,591		57,810		(4,069)		3		30,950			230,137
Release of/(provision for) losses	440		(1,498)		1,927		(184)		—		14		—		—			699
Release of reserve for losses	324		—		116		—		—		—		—		—			440
Operating expenses	—		—		—		—		—		—		(60,815)		—			(60,815)
Total non-interest expense	324		—		116		—		—		—		(60,815)		—			(60,375)
Core earnings before income taxes	110,468		20,609		14,084		1,407		57,810		(4,055)		(60,812)		30,950		(4)	170,461
Income tax (expense)/benefit	(23,196)		(4,327)		(2,956)		(295)		(12,141)		852		12,827		(6,499)			(35,735)
Core earnings before preferred stock dividends	87,272		16,282		11,128		1,112		45,669		(3,203)		(47,985)		24,451		(4)	134,726
Preferred stock dividends	—		—		—		—		—		—		(20,374)		—			(20,374)
Segment core earnings/(losses)	$	87,272	$	16,282	$	11,128	$	1,112	$	45,669	$	(3,203)	$	(68,359)	$	24,451	(4)	$	114,352
Total Assets	$	14,113,686	$	1,558,139	$	5,779,300	$	186,832	$	—	$	4,608,868	$	194,763	$	—		$	26,441,588
Total on- and off-balance sheet program assets at principal balance	$	17,199,347	$	1,634,786	$	6,296,263	$	196,242	$	—	$	—	$	—	$	—		$	25,326,638

(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 "Gains on financial derivatives" on the consolidated financial statements, to determine the effective funding cost for each operating segment.

(4)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

The objective of this section of the report is to provide a discussion and analysis, from management’s

perspective, of the material information necessary to assess Farmer Mac's financial condition and results

of operations for the quarter ended September 30, 2023. 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, 2022 as filed with the SEC on February 24, 2023

(the "2022 Annual Report").

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 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;

•trends in net interest income and net effective spread;

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

•assessment of economic and market trends;

•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

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forward-looking statements, including the factors discussed under "Risk Factors" in Part I, Item 1A of Farmer Mac's 2022 Annual Report, as well as uncertainties about:

•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 agricultural or rural infrastructure 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 infrastructure indebtedness;

•the effect of economic conditions stemming from disruptive global events or otherwise on agricultural mortgage or rural infrastructure lending, borrower repayment capacity, or collateral values, including rapid inflation, fluctuations in interest rates, changes in U.S. trade policies, fluctuations in export demand for U.S. agricultural products and foreign currency exchange rates, supply chain disruptions, increases in input costs, labor availability, volatility from the recent commercial banking failures, 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 effects of the Federal Reserve’s efforts to achieve monetary policy normalization and slow inflation; and

•other factors that could hinder agricultural mortgage lending or borrower repayment capacity, including the effects of severe weather, flooding and drought, climate change, or 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.

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Overview

Farmer Mac is a mission-focused, purpose-driven company determined to drive economic opportunity and prosperity by increasing the accessibility of financing for American agriculture and rural infrastructure. As the nation’s secondary market for agricultural and rural infrastructure loans, we help strengthen and connect rural America by providing a broad array of financial solutions to lenders that support flexible low-cost financing to farmers, ranchers, agribusinesses, renewable energy projects, rural utilities, and other related rural businesses and enterprises. Farmer Mac also serves as a critical investment tool for entities such as states, counties, municipalities, pension funds, banks, public trust funds, and credit unions. Farmer Mac offers those entities a variety of investment opportunities that may diversify their investment portfolios and provide the opportunity to earn a competitive return on their investment dollars.

During third quarter 2023:

•we continued to increase net income and core earnings;

•we maintained strong liquidity in our investment portfolio well above regulatory requirements;

•we maintained our strong capital position, well above regulatory requirements, and uninterrupted access to the debt capital markets, which historically have not been subject to the same short-term disruptions and liquidity concerns experienced by institutions that rely primarily on deposits to fund their assets; and

•we provided $2.3 billion in liquidity and lending capacity to lenders serving rural America.

Farmer Mac’s performance during third quarter 2023, described in more detail below, reflects the success of our continued focus on pursuing new channels and innovative ways to further our mission to increase the accessibility of financing for American agriculture and rural infrastructure. Despite ongoing macroeconomic concerns such as inflation, failures and liquidity concerns in the banking industry, rising interest rates, and geopolitical conflicts, Farmer Mac continued to deliver solid financial results. These financial results for third quarter 2023 reflected a variety of factors, including:

•the resilience of the farm economy, as producers have benefited from healthy farm incomes and liquidity from relatively high commodity prices in 2021 and 2022;

•an increase in outstanding business volume at higher spreads while credit quality improved;

•our disciplined approach to interest rate risk management that helps to protect earnings from the effects of interest rate volatility and has been accretive to Farmer Mac during periods of rising interest rates; and

•effective capital strategies that resulted in advantageous funding in a rising interest rate environment in the current period.

The discussion below of Farmer Mac's financial information includes "non-GAAP measures," which are measures of financial performance 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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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 differ from net income attributable to common stockholders and earnings per common share, respectively, by excluding the effects of fair value fluctuations and specified infrequent or unusual transactions.

Table 1

	For the Three Months Ended
	September 30, 2023		June 30, 2023		September 30, 2022
	(in thousands)
Net income attributable to common stockholders	$	51,345	$	40,421	$	34,627
Core earnings	45,188		42,162		33,392

The $10.9 million sequential increase in net income attributable to common stockholders was due to a $7.1 million after-tax increase in net interest income, a $1.6 million after-tax increase in guarantee fees, a $1.0 million after-tax decrease in our provision for credit losses, and a $0.8 million after-tax increase in the fair value of undesignated financial derivatives.

The $16.7 million year-over-year increase in net income attributable to common stockholders was due to a $15.6 million after-tax increase in net interest income, a $2.3 million after-tax increase in guarantee fees, a $1.5 million after-tax increase in the fair value of undesignated financial derivatives, and a $0.5 million after-tax decrease in our provision for credit losses. These factors were partially offset by a $3.7 million after-tax increase in operating expenses.

The $3.0 million sequential increase in core earnings was due to a $1.3 million after-tax increase in net effective spread and a $1.0 million after-tax decrease in our provision for credit losses.

The $11.8 million year-over-year increase in core earnings was due to a $14.0 million after-tax increase in net effective spread and a $0.5 million after-tax decrease in our provision for credit losses, partially offset by a $3.7 million after-tax increase in operating expenses.

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."

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.

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Table 2

	For the Three Months Ended
	September 30, 2023			June 30, 2023			September 30, 2022
	(in thousands)
Net interest income	$	87,643		$	78,677		$	67,853
Net interest yield %	1.22		%	1.12		%	1.04		%
Net effective spread	$	83,424		$	81,832		$	65,641
Net effective spread %	1.20		%	1.20		%	1.03		%

The $9.0 million sequential increase in net interest income was primarily due to a $8.1 million increase in the fair value of derivatives designated in fair value hedge accounting relationships (designated financial derivatives), and an increase of $0.8 million related to net new business volume. In percentage terms, the sequential 0.10% increase was primarily attributable to the increase in net fair value changes from designated financial derivatives.

The $19.8 million year-over-year increase in net interest income was primarily due to a $10.7 million decrease in funding costs primarily due to our disciplined funding strategies and higher nominal interest rates that have led to an upward repricing of our excess capital that is held in our short-term investment portfolio, a $4.3 million increase related to net new business volume, and a $3.8 million increase in the fair value of derivatives designated in fair value hedge accounting relationships (designated financial derivatives). In percentage terms, the 0.18% increase was primarily attributable to a decrease of 0.14% in funding costs and an increase of 0.05% in net fair value changes from designated financial derivatives.

The $1.6 million sequential increase in net effective spread was primarily due to a decrease of $1.2 million in non-GAAP funding costs due to the same factors mentioned above that decreased our funding costs. In percentage terms, net effective spread remained relatively constant.

The $17.8 million year-over-year increase in net effective spread was primarily due to a $14.8 million decrease in non-GAAP funding costs, due to the same factors mentioned above that decreased our funding costs, and a $3.5 million increase related to net new business volume. In percentage terms, the year-over-year increase of 0.17% was primarily attributable to a decrease in non-GAAP funding costs.

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 10 in "Management's Discussion and Analysis of Financial Condition and Results of Operations—Results of Operations—Net Interest Income."

Business Volume

Our outstanding business volume was $27.7 billion as of September 30, 2023, a net increase of $0.9 billion from June 30, 2023 after taking into account all new business, maturities, and paydowns on existing assets. The net increase was primarily attributable to a net increase of $509.1 million in the Rural Infrastructure Finance line of business and a net increase of $405.9 million in the Agricultural Finance line of business.

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."

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Capital

Table 3

	As of
	September 30, 2023		December 31, 2022
	(in thousands)
Core capital	$	1,421,106	$	1,322,801
Capital in excess of minimum capital level required	581,053		516,882

The increase in capital in excess of the minimum capital level required was primarily due to an increase in retained earnings.

Credit Quality

The following table presents Agricultural Finance on- and off-balance sheet substandard assets, in dollars and as a percentage of the respective portfolio as of September 30, 2023, June 30, 2023, and December 31, 2022:

Table 4

	On-Balance Sheet				Off-Balance Sheet
	Substandard Assets		% of Portfolio		Substandard Assets		% of Portfolio
	(dollars in thousands)
September 30, 2023	$	149,989	2.0	%	$	30,171	0.9	%
June 30, 2023	156,403		2.1	%	38,228		1.2	%
December 31, 2022	169,667		2.3	%	39,733		1.2	%
Increase/(decrease) from prior quarter-ending	$	(6,414)	(0.1)	%	$	(8,057)	(0.3)	%
Increase/(decrease) from prior year-ending	$	(19,678)	(0.3)	%	$	(9,562)	(0.3)	%

The decrease of $6.4 million in on-balance sheet substandard assets during the third quarter was primarily driven by the full payoff of a substandard agricultural storage and processing loan. The $8.1 million decrease in substandard assets in our off-balance sheet portfolios during third quarter was primarily due to credit upgrades in livestock, permanent plantings, crops, and part-time farms.

There was one substandard asset with an outstanding balance of $29.5 million in the Rural Infrastructure Finance portfolio as of September 30, 2023, and there were no substandard assets as of December 31, 2022.

For an analysis of current loan-to-value ratios across substandard and other internally assigned risk ratings, see Table 24 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 90-day delinquencies for the on- and off-balance sheet Agricultural Finance portfolios in dollars and as a percentage of the respective balance sheet category as of September 30, 2023, June 30, 2023, and December 31, 2022:

Table 5

	On-Balance Sheet				Off-Balance Sheet
	90-Day Delinquencies		% of Portfolio		90-Day Delinquencies		% of Portfolio
	(dollars in thousands)
September 30, 2023	$	39,602	0.52	%	$	2,840	0.08	%
June 30, 2023	40,798		0.54	%	4,570		0.14	%
December 31, 2022	39,681		0.53	%	3,817		0.12	%
Increase/(decrease) from prior quarter-ending	$	(1,196)	(0.02)	%	$	(1,730)	(0.06)	%
Increase/(decrease) from prior year-ending	$	(79)	(0.01)	%	$	(977)	(0.04)	%

On-balance sheet Agricultural Finance assets 90 or more days delinquent decreased in agricultural storage and processing, part-time farms, and livestock, and was partially offset by increases in permanent plantings and crops. Off-balance sheet Agricultural Finance assets 90 days or more delinquent decreased in livestock and permanent plantings and was partially offset by increases in crops. The top ten borrower exposures over 90 days delinquent in either the on- or off-balance sheet Agricultural Finance portfolio represented over half of the aggregate 90-day delinquencies as of September 30, 2023.

As of both September 30, 2023 and December 31, 2022, there were no 90-day delinquencies in Farmer Mac's portfolio of Rural Infrastructure Finance loan purchases and loans underlying LTSPCs.

For more information about Farmer Mac's credit metrics, including 90-day delinquencies, the total allowance for losses, and substandard assets, 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

The main difference between core earnings and core earnings per share (non-GAAP measures) and net income attributable to common stockholders and earnings per common share (GAAP measures) is that those non-GAAP measures exclude 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. Another difference is that these two non-GAAP measures exclude 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 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. As further explained below, net effective spread differs from net interest income and net interest yield by excluding certain items from net interest income and net interest yield and including certain other items that net interest income and net interest yield do not contain.

Farmer Mac 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 accounting 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 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 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 "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

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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 10 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, 2023		September 30, 2022
	(in thousands, except per share amounts)
Net income attributable to common stockholders	$	51,345	$	34,627
Less reconciling items:
Gains on undesignated financial derivatives due to fair value changes (see Table 13)	2,921		6,441
Gains/(losses) on hedging activities due to fair value changes	3,210		(624)
Unrealized gains/(losses) on trading securities	1,714		(757)
Net effects of amortization of premiums/discounts and deferred gains on assets consolidated at fair value	29		24
Net effects of terminations or net settlements on financial derivatives	(79)		(3,522)
Income tax effect related to reconciling items	(1,638)		(327)
Sub-total	6,157		1,235
Core earnings	$	45,188	$	33,392
Composition of Core Earnings:
Revenues:
Net effective spread(1)	$	83,424	$	65,641
Guarantee and commitment fees(2)	4,828		4,201
Other(3)	1,056		473
Total revenues	89,308		70,315
Credit related expense (GAAP):
(Release of)/provision for losses	(181)		450
Total credit related expense	(181)		450
Operating expenses (GAAP):
Compensation and employee benefits	14,103		11,648
General and administrative	9,100		6,919
Regulatory fees	831		812
Total operating expenses	24,034		19,379
Net earnings	65,455		50,486
Income tax expense(4)	13,475		10,303
Preferred stock dividends (GAAP)	6,792		6,791
Core earnings	$	45,188	$	33,392
Core earnings per share:
Basic	$	4.17	$	3.09
Diluted	$	4.13	$	3.07
Weighted-average shares:
Basic	10,839		10,799
Diluted	10,938		10,874

(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 10 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.

(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, 2023		September 30, 2022
	(in thousands, except per share amounts)
Net income attributable to common stockholders	$	132,010	$	114,352
Less reconciling items:
Gains on undesignated financial derivatives due to fair value changes (see Table 13)	5,978		11,899
(Losses)/gains on hedging activities due to fair value changes	(1,796)		5,491
Unrealized gains/(losses) on trading securities	2,016		(948)
Net effects of amortization of premiums/discounts and deferred gains on assets consolidated at fair value	87		(18)
Net effects of terminations or net settlements on financial derivatives	1,027		14,526
Income tax effect related to reconciling items	(1,536)		(6,499)
Sub-total	5,776		24,451
Core earnings	$	126,234	$	89,901
Composition of Core Earnings:
Revenues:
Net effective spread(1)	$	242,429	$	184,426
Guarantee and commitment fees(2)	14,063		13,467
Other(3)	2,532		1,294
Total revenues	259,024		199,187
Credit related expense (GAAP):
Provision for/(release of) losses	1,711		(1,139)
Total credit related expense	1,711		(1,139)
Operating expenses (GAAP):
Compensation and employee benefits	43,391		36,661
General and administrative	26,047		21,717
Regulatory fees	2,497		2,437
Total operating expenses	71,935		60,815
Net earnings	185,378		139,511
Income tax expense(4)	38,770		29,236
Preferred stock dividends (GAAP)	20,374		20,374
Core earnings	$	126,234	$	89,901
Core earnings per share:
Basic	$	11.66	$	8.33
Diluted	$	11.56	$	8.27
Weighted-average shares:
Basic	10,825		10,787
Diluted	10,924		10,875

(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 10 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.

(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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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, 2023		September 30, 2022		September 30, 2023		September 30, 2022
	(in thousands, except per share amounts)
GAAP - Basic EPS	$	4.74	$	3.21	$	12.20	$	10.61
Less reconciling items:
Gains on undesignated financial derivatives due to fair value changes (see Table 13)	0.27		0.60		0.55		1.10
Gains/(losses) on hedging activities due to fair value changes	0.30		(0.06)		(0.17)		0.51
Unrealized gains/(losses) on trading securities	0.16		(0.07)		0.19		(0.09)
Net effects of amortization of premiums/discounts and deferred gains on assets consolidated at fair value	—		—		0.01		—
Net effects of terminations or net settlements on financial derivatives	(0.01)		(0.32)		0.10		1.36
Income tax effect related to reconciling items	(0.15)		(0.03)		(0.14)		(0.60)
Sub-total	0.57		0.12		0.54		2.28
Core Earnings - Basic EPS	$	4.17	$	3.09	$	11.66	$	8.33
Shares used in per share calculation (GAAP and Core Earnings)	10,839		10,799		10,825		10,787

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, 2023		September 30, 2022		September 30, 2023		September 30, 2022
	(in thousands, except per share amounts)
GAAP - Diluted EPS	$	4.69	$	3.18	$	12.08	$	10.51
Less reconciling items:
Gains on undesignated financial derivatives due to fair value changes (see Table 13)	0.27		0.59		0.54		1.09
Gains/(losses) on hedging activities due to fair value changes	0.29		(0.06)		(0.16)		0.50
Unrealized gains/(losses) on trading securities	0.16		(0.07)		0.18		(0.09)
Net effects of amortization of premiums/discounts and deferred gains on assets consolidated at fair value	—		—		0.01		—
Net effects of terminations or net settlements on financial derivatives	(0.01)		(0.32)		0.09		1.34
Income tax effect related to reconciling items	(0.15)		(0.03)		(0.14)		(0.60)
Sub-total	0.56		0.11		0.52		2.24
Core Earnings - Diluted EPS	$	4.13	$	3.07	$	11.56	$	8.27
Shares used in per share calculation (GAAP and Core Earnings)	10,938		10,874		10,924		10,875

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

1. Gains/(losses) on financial derivatives due to fair value changes are presented by two reconciling items in Table 6 above: (a) Gains on undesignated financial derivatives due to fair value changes; and (b) (Losses)/gains on hedging activities due to fair value changes.

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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. The net effects of 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.

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 three and nine months ended September 30, 2023 and 2022. 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 and for which Farmer Mac guarantees all classes of securities issued 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. 

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Table 8

	For the Three Months Ended
	September 30, 2023						September 30, 2022
	Average Balance		Income/ Expense		Average Rate		Average Balance		Income/ Expense		Average Rate
	(dollars in thousands)
Interest-earning assets:
Cash and investments	$	5,974,669	$	79,947	5.35	%	$	5,254,260	$	21,581	1.64	%
Loans, Farmer Mac Guaranteed Securities and USDA Securities(1)	21,859,457		293,378		5.37	%	20,144,586		164,548		3.27	%
Total interest-earning assets	27,834,126		373,325		5.36	%	25,398,846		186,129		2.93	%
Funding:
Notes payable due within one year	3,212,217		38,704		4.82	%	2,873,545		15,679		2.18	%
Notes payable due after one year(2)	22,784,190		248,002		4.35	%	21,205,661		103,440		1.95	%
Total interest-bearing liabilities(3)	25,996,407		286,706		4.41	%	24,079,206		119,119		1.98	%
Net non-interest-bearing funding	1,837,719		—				1,319,640		—
Total funding	27,834,126		286,706		4.12	%	25,398,846		119,119		1.88	%
Net interest income/yield prior to consolidation of certain trusts	27,834,126		86,619		1.24	%	25,398,846		67,010		1.06	%
Net effect of consolidated trusts(4)	861,980		1,024		0.48	%	823,793		843		0.41	%
Net interest income/yield	$	28,696,106	$	87,643	1.22	%	$	26,222,639	$	67,853	1.04	%

(1)Excludes interest income of $8.5 million and $7.7 million in the third quarter of 2023 and 2022, 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 $7.5 million and $6.8 million in the third quarter of 2023 and 2022, 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.

	For the Nine Months Ended
	September 30, 2023						September 30, 2022
	Average Balance		Income/ Expense		Average Rate		Average Balance		Income/ Expense		Average Rate
	(dollars in thousands)
Interest-earning assets:
Cash and investments	$	5,833,829	$	209,429	4.79	%	$	5,114,900	$	38,497	1.00	%
Loans, Farmer Mac Guaranteed Securities and USDA Securities(1)	21,518,428		805,922		4.99	%	19,543,316		386,968		2.64	%
Total interest-earning assets	27,352,257		1,015,351		4.95	%	24,658,216		425,465		2.30	%
Funding:
Notes payable due within one year	3,463,479		115,557		4.45	%	2,741,738		21,630		1.05	%
Notes payable due after one year(2)	22,242,225		657,538		3.94	%	20,735,954		209,573		1.35	%
Total interest-bearing liabilities(3)	25,705,704		773,095		4.01	%	23,477,692		231,203		1.31	%
Net non-interest-bearing funding	1,646,553		—				1,180,524		—
Total funding	27,352,257		773,095		3.77	%	24,658,216		231,203		1.25	%
Net interest income/yield prior to consolidation of certain trusts	27,352,257		242,256		1.18	%	24,658,216		194,262		1.05	%
Net effect of consolidated trusts(4)	880,150		3,122		0.47	%	852,223		3,043		0.48	%
Net interest income/yield	$	28,232,407	$	245,378	1.16	%	$	25,510,439	$	197,305	1.03	%

(1)Excludes interest income of $25.6 million and $23.7 million in the first nine months of 2023 and 2022, 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 $22.4 million and $20.6 million in the first nine months of 2023 and 2022, 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.

The $48.1 million year-over-year increase in net interest income was primarily due to a $40.3 million decrease in funding costs primarily due to our disciplined funding strategies and higher nominal interest rates that have led to an upward repricing of our excess capital that is held in our short-term investment portfolio, and a $17.0 million increase related to net new business volume. These factors were partially offset by a $7.7 million decrease in the fair value of derivatives designated in fair value hedge accounting

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relationships (designated financial derivatives) and a $1.1 million decrease in cash-basis interest income. In percentage terms, the 0.13% increase was primarily attributable to a decrease of 0.18% in funding costs, partially offset by a decrease of 0.04% in net fair value changes from designated financial derivatives.

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), and then allocated based on the relative size of rate and volume changes from the prior period.  

Table 9

	For the Nine Months Ended September 30, 2023 Compared to Same Period in 2022
	Increase/(Decrease) Due to
	Rate		Volume		Total
	(in thousands)
Income from interest-earning assets:
Cash and investments	$	164,788	$	6,144	$	170,932
Loans, Farmer Mac Guaranteed Securities and USDA Securities	376,296		42,658		418,954
Total	541,084		48,802		589,886
Expense from other interest-bearing liabilities	517,961		23,931		541,892
Change in net interest income prior to consolidation of certain trusts(1)	$	23,123	$	24,871	$	47,994

(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 (1) the amortization of premiums and discounts on assets consolidated at fair value, (2) the net effects of consolidated trusts with beneficial interests owned by third parties, and (3) 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 10

	For the Three Months Ended								For the Nine Months Ended
	September 30, 2023				September 30, 2022				September 30, 2023				September 30, 2022
	Dollars		Yield		Dollars		Yield		Dollars		Yield		Dollars		Yield
	(dollars in thousands)
Net interest income/yield	$	87,643	1.22	%	$	67,853	1.04	%	$	245,378	1.16	%	$	197,305	1.03	%
Net effects of consolidated trusts	(1,024)		0.02	%	(843)		0.02	%	(3,123)		0.02	%	(3,044)		0.02	%
Expense related to undesignated financial derivatives	(805)		(0.01)	%	(2,613)		(0.05)	%	(3,999)		(0.02)	%	(5,633)		(0.03)	%
Amortization of premiums/discounts on assets consolidated at fair value	(24)		—	%	(21)		—	%	(71)		—	%	28		—	%
Amortization of losses due to terminations or net settlements on financial derivatives	844		0.01	%	640		0.01	%	2,448		0.01	%	1,723		0.01	%
Fair value changes on fair value hedge relationships	(3,210)		(0.04)	%	625		0.01	%	1,796		0.01	%	(5,953)		(0.03)	%
Net effective spread	$	83,424	1.20	%	$	65,641	1.03	%	$	242,429	1.18	%	$	184,426	1.00	%

The $58.0 million year-over-year increase in net effective spread was primarily due to a $45.8 million decrease in non-GAAP funding costs due to the same factors mentioned above that decreased our funding costs, and a $16.4 million increase related to net new business volume. These factors were partially offset by a $1.1 million decrease in cash-basis interest income. In percentage terms, the year-over-year increase of 0.18% was primarily attributable to a 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 month periods ended September 30, 2023 and 2022:

Table 11

	As of September 30, 2023								As of September 30, 2022
	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	$	17,351	$	1,705	$	19,056	$	19,056	$	13,092	$	1,677	$	14,769
(Release of)/provision for losses	(136)		(45)		(181)				617		(167)		450
Charge-offs	—		—		—				—		—		—
Ending Balance	$	17,215	$	1,660	$	18,875			$	13,709	$	1,510	$	15,219
For the Nine Months Ended
Beginning Balance	$	15,731	$	1,433	$	17,164	$	17,164	$	14,492	$	1,950	$	16,442
Provision for/(release of) losses	1,484		227		1,711				(699)		(440)		(1,139)
Charge-offs	—		—		—				(84)		—		(84)
Ending Balance	$	17,215	$	1,660	$	18,875			$	13,709	$	1,510	$	15,219

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."

During the three months ended September 30, 2023, we recorded a $0.2 million release from the allowance for losses primarily as a result of a single collateral dependent agricultural storage and processing loan that fully paid off during the quarter, partially offset by one rural infrastructure loan that was downgraded to substandard during the quarter. During the nine months ended September 30, 2023, we recorded a $1.7 million provision to the allowance for loan losses as a result of the above-mentioned rural infrastructure loan.

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, 2023 and 2022:

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Table 12

	For the Three Months Ended								For the Nine Months Ended
					Change								Change
	September 30, 2023		September 30, 2022		$		%		September 30, 2023		September 30, 2022		$		%
	(dollars in thousands)
Contractual guarantee and commitment fees	$	3,794	$	3,494	$	300	9	%	$	11,195	$	10,556	$	639	6	%
Guarantee obligation amortization	847		1,030		(183)		(18)	%	3,767		4,821		(1,054)		(22)	%
Guarantee asset fair value changes	879		(1,880)		2,759		147	%	(2,020)		(5,826)		3,806		(65)	%
Guarantee and commitment fee income	$	5,520	$	2,644	$	2,876	109	%	$	12,942	$	9,551	$	3,391	36	%

Guarantee and commitment fees increased for the three and nine months ended September 30, 2023 compared to 2022, which was due to increases in the average outstanding balance of LTSPCs during the period. As adjusted for the core earnings presentation, guarantee and commitment fees were $4.8 million and $14.1 million for the three and nine months ended September 30, 2023, respectively, compared to $4.2 million and $13.5 million for the three and nine months ended September 30, 2022, respectively.

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 those consolidated Farmer Mac Guaranteed Securities. Farmer Mac has also excluded guarantee asset fair value changes from the presentation of core earnings because these fluctuations are not expected to have a cumulative net impact on Farmer Mac's financial condition or results of operations if Farmer Mac fulfills its guarantee obligation throughout the term of the guaranteed securities, as is expected.

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 Table 6 in "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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Gains on financial derivatives. The components of gains and losses on financial derivatives for the three and nine months ended September 30, 2023 and 2022 are summarized in the following table:

Table 13

	For the Three Months Ended								For the Nine Months Ended
					Change								Change
	September 30, 2023		September 30, 2022		$		%		September 30, 2023		September 30, 2022		$		%
	(dollars in thousands)
Gains due to fair value changes	$	2,921	$	6,441	$	(3,520)	(55)	%	$	5,978	$	11,899	$	(5,921)	(50)	%
Accrual of contractual payments	(805)		(2,613)		1,808		(69)	%	(3,999)		(5,633)		1,634		(29)	%
Gains due to terminations or net settlements	555		(3,056)		3,611		(118)	%	2,784		15,285		(12,501)		(82)	%
Gains on financial derivatives	$	2,671	$	772	$	1,899	246	%	$	4,763	$	21,551	$	(16,788)	(78)	%

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 "Gains/(losses) due to terminations or net settlements" in the table above. 

Operating Expenses. The components of operating expenses for the three and nine months ended September 30, 2023 and 2022 are summarized in the following table:

Table 14

	For the Three Months Ended								For the Nine Months Ended
					Change								Change
	September 30, 2023		September 30, 2022		$		%		September 30, 2023		September 30, 2022		$		%
	(dollars in thousands)
Compensation and employee benefits	$	14,103	$	11,648	$	2,455	21	%	$	43,391	$	36,661	$	6,730	18	%
General and administrative	9,100		6,919		2,181		32	%	26,047		21,717		4,330		20	%
Regulatory fees	831		812		19		2	%	2,497		2,437		60		2	%
Total Operating Expenses	$	24,034	$	19,379	$	4,655	24	%	$	71,935	$	60,815	$	11,120	18	%

Compensation and Employee Benefits. The increase in compensation and employee benefits expenses for the three and nine months ended September 30, 2023 compared to the same periods in 2022 was largely due to increased headcount.

General and Administrative Expenses (G&A). The increase in G&A expenses for the three and nine months ended September 30, 2023 compared to the same periods in 2022 was primarily due to increased spending on software licenses and information technology and other consultants to support growth and strategic initiatives. One of those initiatives is a multi-year effort to replace Farmer Mac's platform for securities trades and to implement a treasury management system.

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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, 2023 and 2022:

Table 15

	For the Three Months Ended										For the Nine Months Ended
							Change										Change
	September 30, 2023			September 30, 2022			$		%		September 30, 2023			September 30, 2022			$		%
	(dollars in thousands)
Income tax expense	$	15,113		$	10,631		$	4,482	42	%	$	40,306		$	35,735		$	4,571	13	%
Effective tax rate	20.6		%	20.5		%			0.1	%	20.9		%	21.0		%			(0.1)	%

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Business Volume.  

The following table sets forth the net growth or decrease in Farmer Mac's lines of business for the three and nine months ended September 30, 2023 and 2022:

Table 16

Net New Business Volume
		For the Three Months Ended				For the Nine Months Ended
		September 30, 2023		September 30, 2022		September 30, 2023		September 30, 2022
	On or Off Balance Sheet	Net Growth/(Decrease)		Net Growth/(Decrease)		Net Growth/(Decrease)		Net Growth/(Decrease)
		(in thousands)
Agricultural Finance:
Farm & Ranch:
Loans	On-balance sheet	$	35,546	$	(160,600)	$	(162,932)	$	278,637
Loans held in consolidated trusts:
Beneficial interests owned by third-party investors (Pass-Through)(1)	On-balance sheet	(17,146)		(11,835)		(55,001)		(125,517)
Beneficial interests owned by third-party investors (Structured)(1)	On-balance sheet	(8,180)		297,298		266,279		297,298
IO-FMGS(2)	On-balance sheet	(168)		(469)		(1,042)		(1,205)
USDA Securities	On-balance sheet	(13,456)		(2,149)		(77,472)		(18,548)
AgVantage Securities(1)	On-balance sheet	225,000		310,000		80,000		580,000
LTSPCs and unfunded commitments	Off-balance sheet	157,041		189,906		169,752		165,219
Other Farmer Mac Guaranteed Securities(3)	Off-balance sheet	(25,716)		(14,466)		(45,272)		(69,244)
Loans serviced for others	Off-balance sheet	(7,589)		(337)		558,731		(1,932)
Total Farm & Ranch		$	345,332	$	607,348	$	733,043	$	1,104,708
Corporate AgFinance:
Loans	On-balance sheet	$	35,874	$	51,433	$	57,524	$	77,747
AgVantage Securities(1)	On-balance sheet	15,050		(4,282)		23,573		(18,778)
Unfunded commitments	Off-balance sheet	9,626		20,324		56,702		37,983
Total Corporate AgFinance		$	60,550	$	67,475	$	137,799	$	96,952
Total Agricultural Finance		$	405,882	$	674,823	$	870,842	$	1,201,660
Rural Infrastructure Finance:
Rural Utilities:
Loans	On-balance sheet	$	29,170	$	67,721	$	222,944	$	397,042
AgVantage Securities(1)	On-balance sheet	476,028		76,425		573,386		29,567
LTSPCs and unfunded commitments	Off-balance sheet	1,205		(19,946)		(37,577)		(25,573)
Other Farmer Mac Guaranteed Securities(3)	Off-balance sheet	—		—		(71)		—
Total Rural Utilities		$	506,403	$	124,200	$	758,682	$	401,036
Renewable Energy:
Loans	On-balance sheet	$	6,776	$	59,979	$	98,503	$	99,515
Unfunded commitments	Off-balance sheet	(4,102)		(11,755)		1,902		9,964
Total Renewable Energy		$	2,674	$	48,224	$	100,405	$	109,479
Total Rural Infrastructure Finance		$	509,077	$	172,424	$	859,087	$	510,515
Total		$	914,959	$	847,247	$	1,729,929	$	1,712,175

(1)Categories of Farmer Mac Guaranteed Securities.

(2)An interest-only Farmer Mac Guaranteed Security retained as part of a structured securitization.

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(3)Other categories of Farmer Mac Guaranteed Securities that were sold by Farmer Mac to third parties.

Farmer Mac's outstanding business volume was $27.7 billion as of September 30, 2023, a net increase of $0.9 billion from June 30, 2023 after taking into account all new business, maturities, and paydowns on existing assets.

The $0.3 billion net increase in Farm & Ranch during third quarter 2023 resulted from $1.4 billion of new purchases, commitments, and guarantees, partially offset by $1.0 billion of scheduled maturities and repayments.

Farmer Mac purchased a total of $0.2 billion in Farm & Ranch loans, partially offset by $0.1 billion in repayments. The $0.1 billion net increase was primarily driven by strong borrower economics despite the continued higher interest rate environment.

Farmer Mac also purchased a total of $1.0 billion in Farm & Ranch AgVantage Securities during third quarter 2023, which primarily reflected the refinancing of maturing securities. The $1.0 billion in gross purchases was partially offset by $0.8 billion in scheduled maturities.

The $0.1 billion net increase in Corporate AgFinance during third quarter 2023 resulted from $0.3 billion of new purchases and commitments, which was partially offset by $0.2 billion of scheduled maturities and repayments. Farmer Mac purchased a total of $195.6 million in loans, which was partially offset by $159.7 million in scheduled maturities and repayments. The increase in loan purchases was primarily due to Farmer Mac's continued focus to support loans to larger and more complex agribusinesses focused on food and fiber processing and other food supply chain production.

The $0.5 billion net increase in Rural Utilities during third quarter 2023 resulted from $0.6 billion of new purchases, commitments, and guarantees, which was partially offset by $0.1 billion of scheduled maturities and repayments. Farmer Mac purchased a total of $500.0 million in AgVantage Securities, $43.5 million in telecommunications loans, and $47.0 million in electric distribution and generation and transmission loans. The $90.5 million in loan purchases was partially offset by $61.4 million in scheduled maturities and repayments. The net increase in loan purchases primarily reflected borrowers' normal-course capital expenditures related to maintaining and upgrading utility infrastructure as well as investments in broadband infrastructure, and Farmer Mac's continued focus to support telecommunications investment in rural America.

The $2.7 million net increase in Renewable Energy during third quarter 2023 primarily reflects $17.4 million in loan purchases and unfunded commitments, partially offset by $14.7 million in repayments.

Farmer Mac's outstanding business volume was $25.3 billion as of September 30, 2022, a net increase of $0.8 billion from June 30, 2022 after taking into account all new business, scheduled maturities, and paydowns on existing assets.

The $607.3 million net increase in Farm & Ranch during third quarter 2022 resulted from $1.9 billion of

new purchases, commitments, and guarantees, mostly offset by $1.3 billion of scheduled maturities and

repayments. Farmer Mac purchased a total of $303.9 million in loans, which was primarily driven by

improved borrower economics albeit navigating a substantially higher interest rate environment. The

$303.9 million in gross Farm & Ranch loan purchases was partially offset by $166.8 million in scheduled

maturities and repayments.

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Farmer Mac also purchased a total of $1.0 billion in Farm & Ranch AgVantage Securities during third

quarter 2022, which primarily reflected the refinancing of maturing securities as well as financial

counterparties seeking to add longer term AgVantage securities to manage their asset-liability maturity

profile given recent increases in credit spreads and interest rates. The $1.0 billion in gross purchases was

partially offset by $0.7 billion in scheduled maturities.

The $67.5 million net increase in Corporate AgFinance during third quarter 2022 resulted from

$169.9 million of new purchases and commitments, which was offset by $102.5 million of scheduled

maturities and repayments. Farmer Mac purchased a total of $136.0 million in loans, which was offset by

$84.6 million in scheduled maturities and repayments. This net increase in loans was primarily due to

Farmer Mac's continued focus to support loans to larger and more complex agribusinesses focused on food

and fiber processing, and other food supply chain production.

The $124.2 million net increase in Rural Utilities during third quarter 2022 resulted from $547.1 million

of new purchases, commitments, and guarantees, which was partially offset by $422.9 million of

scheduled maturities and repayments. Farmer Mac purchased a total of $400.0 million in AgVantage

Securities, $75.8 million in telecommunications loans and $60.0 million in electric distribution and

generation and transmission loans. The $135.8 million in loan purchases was partially offset by $68.1

million in scheduled maturities and repayments.

The $48.2 million net increase in Renewable Energy during third quarter 2022 primarily reflects

$61.7 million in loan purchases, partially offset by $13.4 million in repayments.

The level and composition of Farmer Mac’s outstanding business volume is based on the relationship between new business, loan sales, scheduled maturities, and repayments on existing assets from year to year. 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 17

	For the Three Months Ended				For the Nine Months Ended
	September 30, 2023		September 30, 2022		September 30, 2023		September 30, 2022
	(dollars in thousands)
AgVantage securities	$	1,519,715	$	1,398,807	$	3,093,370	$	4,245,963
Loans securitized and held in consolidated trusts with beneficial interests owned by third parties	6,399		318,997		291,600		344,925
Total Farmer Mac Guaranteed Securities Issuances	$	1,526,114	$	1,717,804	$	3,384,970	$	4,590,888

Farmer Mac either retains the loans it purchases or securitizes them and retains or sells Farmer Mac Guaranteed Securities backed by those securitized loans. During first quarter 2023, Farmer Mac executed

83

its third structured securitization transaction, whereby it sold and securitized agricultural mortgage loans resulting in $281.0 million of Farmer Mac Guaranteed Securities. In this transaction, Farmer Mac transferred selected loans to a depositor which then deposited the loans into a trust, at which time the loans became assets of the trust. Farmer Mac concluded that it was the primary beneficiary of the trust because Farmer Mac retained significant interest and has power over the activities most significant to the economic performance of the Variable Interest Entity in its role as Master Servicer. Therefore, Farmer Mac consolidates the assets and liabilities of the trust for this structured securitization. Farmer Mac does not consider the assets held by the related securitization trust to be available to satisfy the claims of the creditors of Farmer Mac and/or the depositor.

During the three and nine months ended September 30, 2023 and 2022, Farmer Mac realized no gains or losses from the securitization of loans that it holds in consolidated trusts. Farmer Mac consolidates these loans and presents them as "Loans held for investment in consolidated trusts, at amortized cost" on the consolidated balance sheets.

During the three and nine months ended September 30, 2023 and 2022, Farmer Mac realized no gains or losses from the issuance of Farmer Mac Guaranteed USDA Securities or AgVantage Securities.

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

Table 18

Outstanding Business Volume
	On or Off Balance Sheet	As of September 30, 2023		As of December 31, 2022
		(in thousands)
Agricultural Finance:
Farm & Ranch:
Loans	On-balance sheet	$	4,987,818	$	5,150,750
Loans held in consolidated trusts:
Beneficial interests owned by third-party investors (Pass-Through)(1)	On-balance sheet	859,917		914,918
Beneficial interests owned by third-party investors (Structured)(1)	On-balance sheet	562,937		296,658
IO-FMGS(2)	On-balance sheet	9,580		10,622
USDA Securities	On-balance sheet	2,329,830		2,407,302
AgVantage Securities(1)	On-balance sheet	5,685,000		5,605,000
LTSPCs and unfunded commitments	Off-balance sheet	2,992,061		2,822,309
Other Farmer Mac Guaranteed Securities(3)	Off-balance sheet	455,681		500,953
Loans serviced for others	Off-balance sheet	579,011		20,280
Total Farm & Ranch		$	18,461,835	$	17,728,792
Corporate AgFinance:
Loans	On-balance sheet	$	1,223,777	$	1,166,253
AgVantage Securities(1)	On-balance sheet	383,173		359,600
Unfunded commitments	Off-balance sheet	134,356		77,654
Total Corporate AgFinance		$	1,741,306	$	1,603,507
Total Agricultural Finance		$	20,203,141	$	19,332,299
Rural Infrastructure Finance:
Rural Utilities:
Loans	On-balance sheet	$	3,024,640	$	2,801,696
AgVantage Securities(1)	On-balance sheet	3,617,542		3,044,156
LTSPCs and unfunded commitments	Off-balance sheet	475,015		512,592
Other Farmer Mac Guaranteed Securities(3)	Off-balance sheet	1,098		1,169
Total Rural Utilities		$	7,118,295	$	6,359,613
Renewable Energy:
Loans	On-balance sheet	$	318,073	$	219,570
Unfunded commitments	Off-balance sheet	12,502		10,600
Total Renewable Energy		$	330,575	$	230,170
Total Rural Infrastructure Finance		$	7,448,870	$	6,589,783
Total		$	27,652,011	$	25,922,082

(1)A Farmer Mac Guaranteed Security.

(2)An interest-only Farmer Mac Guaranteed Security retained as part of a structured securitization.

(3)Other categories of Farmer Mac Guaranteed Securities that were sold by Farmer Mac to third parties.

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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, 2023:

Table 19

Schedule of Principal Amortization as of September 30, 2023
	Loans		Loans Underlying Off-Balance Sheet Farmer Mac Guaranteed Securities and LTSPCs		USDA Securities and Farmer Mac Guaranteed USDA Securities		Total
	(in thousands)
2023	$	97,947	$	72,738	$	26,915	$	197,600
2024	534,148		303,216		111,733		949,097
2025	588,262		244,862		112,693		945,817
2026	572,745		287,332		116,993		977,070
2027	686,149		256,126		118,859		1,061,134
Thereafter	8,497,911		2,703,472		2,044,506		13,245,889
Total	$	10,977,162	$	3,867,746	$	2,531,699	$	17,376,607

Of Farmer Mac's $27.7 billion outstanding principal balance of business volume as of September 30, 2023, $9.7 billion were AgVantage securities included in the Agricultural Finance and Rural Infrastructure Finance lines 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, 2023:

Table 20

AgVantage Balances by Year of Maturity
	As of
	September 30, 2023
	(in thousands)
2023	$	805,781
2024	2,191,199
2025	1,247,625
2026	1,186,530
2027	1,050,698
Thereafter(1)	3,204,980
Total	$	9,686,813

(1)Includes various maturities ranging from 2028 to 2049.

The weighted-average remaining maturity of the outstanding AgVantage securities shown in the table above was 4.4 years as of September 30, 2023.  

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Outlook  

Farmer Mac continues to provide a stable source of liquidity, capital, and risk management tools as a secondary market that helps meet the financing needs of rural America. The pace and trajectory of Farmer Mac's growth will depend on the capital and liquidity needs of the lending institutions serving agriculture and rural infrastructure businesses and the overall financial health of borrowers in the sectors we serve. Market interest rates have increased significantly since the lows experienced in 2021, and interest rates on Farmer Mac products during third quarter 2023 continued to be higher than Farmer Mac's 15-year historical averages. New loan origination volumes tend to correlate inversely with changes in interest rates. However, prepayment rates also generally correlate inversely with changes in interest rates, with higher interest rates typically slowing the pace of portfolio loan repayments. Future changes to monetary policy and the overall level, pace, and duration of elevated interest rates could continue to impact the pace and timing of the Agricultural Finance mortgage loan purchase demand and repayments. Farmer Mac anticipates positive momentum in wholesale volume refinancing activity in fourth quarter 2023, with most of the AgVantage Securities scheduled to mature in fourth quarter 2023 expected to be successfully refinanced through the purchase of new AgVantage Securities.

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

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

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

•Farmer Mac's growing relationships with larger regional and national lenders, as well as consolidation within the agricultural and rural infrastructure lending industry, continue to provide opportunities that could influence Farmer Mac's loan and wholesale funding demand and increase the average transaction size within Farmer Mac's lines of business.

•Future growth opportunities in Farmer Mac's Rural Infrastructure Finance line of business may evolve by deepening business relationships with eligible counterparties, financing broadband-related capital expenditures and rural telecommunications facilities, growing opportunities for renewable energy project finance, and exploring new types of loan products.

•Expansion and acquisition opportunities for agricultural producers resulting from high agricultural incomes and rising input costs 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.

•Investments necessary to support consumer demand could increase the need for financing within the food and agriculture supply chain, which may increase the need for incremental capital support from the secondary market.

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•Resilient access to debt capital markets as investors seek government and agency issuances.

In third quarter 2023, elevated interest rates continued to cause fluctuations in bank liquidity due to deposit withdrawals. Farmer Mac, not being a depository institution, is insulated from similar liquidity concerns. In fact, certain economic disruptions could potentially have a positive impact on Farmer Mac’s funding costs relative to the market. Historically, significant economic events have often led investors to seek high-quality fixed income investments, such as Farmer Mac’s debt securities. As Farmer Mac’s funding strategies do not rely on deposits, it is generally capable of extending funding beyond short-term disruptions, thereby circumventing many potential liquidity concerns. This funding advantage could present Farmer Mac with increased opportunities in a competitive lending environment.

The U.S. economy continued to exhibit signs of growing volatility in third quarter 2023. While consumer spending has retreated modestly from the highs experienced in 2022, the significantly higher interest rate environment continues to create uncertainty for the economic outlook for the U.S. economy in the remainder of 2023 and into 2024. And while labor markets continue to remain resilient, slower consumer spending, declines in residential housing investment, and the continued tightening of credit conditions following bank industry stress indicate that the probability of a U.S. or global recession remains elevated. Farmer Mac believes that its portfolio is sufficiently balanced to withstand the market volatility that arises with an economic recession, as the agricultural, food, and infrastructure industries tend not to be directly correlated with the general economy. Farmer Mac believes these sectors are generally well positioned to withstand an economic downturn due to ample consumer demand and government support.

The recent rise in short-term rates has provided an asymmetric benefit to Farmer Mac's earnings, and Farmer Mac projects limited downside to earnings when rates decline due to its proactive equity capital allocation strategies. This is due to our fundamental asset liability management approach, where Farmer Mac matches the duration and convexity of our assets and liabilities in all rate environments, which enables Farmer Mac to minimize earnings volatility in periods of short-term interest rate volatility.

In addition to active fundamental asset liability management that enables Farmer Mac to mitigate earnings volatility in periods of short-term interest rate volatility, Farmer Mac's business has certain natural business hedges that help to insulate it from interest rate volatility. This is a key differentiator for Farmer Mac relative to other financial services entities. For example, when interest rates rise, prepayments also tend to decline - but interest earned on excess cash and capital would likely increase and Farmer Mac would continue to have strong market access, as Farmer Mac does not rely on deposits as a source of funding. Conversely, when interest rates decline, loan purchase volume often increases but prepayments also tend to increase. Farmer Mac is able to manage its interest rate risk through exercising callable issuances and maintaining its market-based credit spreads. Although these natural business dynamics are not perfect offsets, they do counterbalance to mitigate volatility from changes in short-term interest rates.

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. Farmer Mac expects continued increases in its operating expenses over the next several years. We will continue making investments in our infrastructure and funding platforms to support these strategies and scale with our growth.

Agricultural Industry. The agricultural economy experienced somewhat favorable conditions in third quarter 2023, with mixed commodity prices and continued easing in input price inflation. In response to Russia's invasion of Ukraine in early 2022, grain commodity prices rose rapidly during first half of 2022

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and continued to be elevated during much of the second half of 2022. Higher commodity prices for grains and many animal proteins substantially increased gross cash receipts for the 2022 marketing year. Farm expense price levels partially stabilized in third quarter 2023, after falling for several consecutive quarters. While many expense categories have dropped significantly from their 2022 peak levels, several other categories such as interest, labor, and other inputs remain elevated and could experience additional upward pressure through the remainder of the year and into 2024. Grain commodity prices moderated again in third quarter 2023 due to stabilizing supply expectations, though uncertainty in Ukraine could increase price volatility in the last quarter of 2023 and into 2024.

Overall farm incomes are expected to trend lower in 2023 after reaching new highs in 2022. The USDA estimates that net cash farm income climbed another 35% to $202.2 billion in 2022, a new all-time high. The primary driver of increased profitability was higher cash revenues, contrary to 2019 and 2020 when elevated government support payments lifted farm incomes. The USDA estimates production expenses rose by 15% in 2022, a level experienced in the 1970s and again in the 2012-2014 agricultural economy expansion. Looking forward, the USDA expects net cash farm income to fall by 27% to $148.6 billion in 2023 due to lower commodity prices and elevated farm expenses. However, the 2023 farm income projections are 20% higher than the 10-year average, demonstrating the continued strength in farm profitability.

Rising farm incomes alongside low interest rates in 2020 and 2021 drove a rapid rise in land values and a decrease in farm delinquencies and bankruptcies. This trend has continued into 2023. Land value survey data from the USDA show a 7.4% increase in average farm real estate values from June 2022 to June 2023. Annual farm real estate value gains were highest in the Northern Plains (13.7%) and the Southern Plains (9.4%) but also strong in the Lake states (8.2%), the Corn Belt (7.1%), and the Southeast (5.7%). The Federal Reserve Bank of Chicago AgLetter reported a 9% gain in farmland values in the Seventh District (primarily Iowa, Indiana, Illinois, and Wisconsin) between July 2022 and July 2023. Data from the Federal Reserve Bank of Kansas City show a similar rise in land values in the Tenth District (primarily Kansas, Missouri, Nebraska, and Oklahoma) during that same period. Farmland value growth rates moderated in second quarter 2023 in the face of rapidly rising interest rates. Growth rates in land values could remain low in 2023 and into 2024 due to compressing farm profitability and an elevated interest rate environment. 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 in farmland values than state or national averages indicate.

Economic conditions are likely to bring mixed effects to credit demand during the remainder of 2023. Strong asset appreciation in recent years could signal additional demand and capacity for farm debt as financial decision-makers look to lock in long-term economics for their appreciating farm and agribusiness assets. Farm profitability generally increases asset values and demand for the asset class for multiple years, which also contributes to increasing credit demand. However, the elevated interest rate environment could adversely impact mortgage portfolio growth, lowering new sales and originations but also potentially slowing portfolio prepayments. Finally, a changing yield curve coupled with widening market credit spreads could increase opportunities for corporate and institutional lending, as Farmer Mac's programs become more attractive at higher costs of capital. Combined, these factors are expected to be generally supportive of continued net portfolio growth for Farmer Mac during the last quarter of 2023.

Positive economic conditions in the agricultural economy improved Farmer Mac's agricultural portfolio performance in 2022 and throughout the first three quarters of 2023. Farmer Mac's 90-day delinquency levels decreased slightly in third quarter 2023 relative to second quarter 2023. The overall delinquency

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rate decreased from 0.42% of the Agricultural Finance line of business as of June 30, 2023 to 0.39% of the Agricultural Finance line of business as of September 30, 2023. The third quarter 2023 percentage is also slightly lower than the 0.42% delinquency rate as of September 30, 2022. The year-over-year decrease in the seriously delinquent rate was caused by typical, seasonal portfolio delinquency activity as well as a resolution of a large, agribusiness credit workout. The top five exposures of seriously delinquent loans as of third quarter 2023 represent over half of all 90-day delinquent loans. Rising input costs, market volatility, and the potential for continued economic and weather-related stress increase the level of uncertainty inherent in the agricultural credit sector, which could negatively affect the trajectory of the current agricultural cycle. Farmer Mac believes that its portfolio continues to be 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 from cyclical and external factors. For more information about the loan balances, loan-to-value ratios, 90-day delinquencies, and substandard asset rate for the Agricultural Finance mortgage loans in Farmer Mac's portfolio as of September 30, 2023, see "Management's Discussion and Analysis of Financial Condition and Results of Operations—Risk Management—Credit Risk—Loans and Guarantees."

Exogenous factors facing farm and food producers can create uncertainty and market instability within the sector. External market conditions that could adversely impact the farm and food sectors in the remainder of 2023 and into 2024 include foreign trade and trade policy, supply chain disruptions, and environmental conditions. The U.S. agricultural sector has become increasingly dependent on foreign markets as a source of demand, making trade policy an important consideration for farms and food. The USDA projects U.S. agriculture exports will drop to $177.5 billion in 2023, a 9% decline relative to last year. Through August 2023, agricultural export values were down approximately 12% in 2023 compared to 2022. The value of the U.S. dollar relative to other major currencies rose 3% in third quarter 2023. A strong U.S. dollar could potentially be a headwind for farm, food, fiber, and fuel exports through the last quarter of 2023. Slower global growth could also be a headwind for consumer-oriented products like animal proteins, dairy, fruits, and nuts, and Ukrainian corn and wheat production may eventually stabilize. Because Farmer Mac has significant exposure to crop commodities like corn, soybeans, hay, wheat, and cotton, any increase in agricultural commodity prices is likely to benefit Farmer Mac's overall portfolio credit quality more than degradation from downward pressure on livestock and consumer product profitability.

Severe weather conditions and long-term environmental change continue to shape agricultural sectors. The U.S. experienced 18 separate billion-dollar weather disasters in 2022, as tracked by the National Oceanic and Atmospheric Administration. Many of those events affected agriculture, including midwestern storms, western wildfires, excessive heat, and drought. Federal crop insurance provides a strong mitigator against this risk, but farmers and ranchers face increasingly-severe weather incidents. Long and persistent heat and drought conditions affected agricultural production regions in the western and midwestern parts of the United States in 2021 and 2022.

There has been a sizable improvement in conditions in 2023 for large portions of the West Coast, especially California, but drought conditions have intensified in other areas of the country. Approximately 19% of the continental U.S. was classified as being in severe to extreme drought as of September 30, 2023, according to data from the National Center for Environmental Information. Much of the U.S. affected by drought conditions in third quarter 2023 is in the Central and Southern Plains. Dry weather across a significant portion of the Mississippi River basin this summer has led to sharply lower river levels this fall. Barge traffic has been reduced as a result, complicating logistics for grain processors across the northern U.S. this fall. Higher transportation costs for barges may ultimately lead to lower farmgate prices,

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although the impact will likely vary significantly based on alternative transportation options such as rail. For loans in other areas that commonly experience exceptional drought (primarily in California), Farmer Mac's underwriting process includes an assessment of anticipated long-term water availability for the related property and how that impacts the collateral value and borrower's cash flow position to mitigate that risk.

Rural Infrastructure Industry. Economic conditions affecting the rural infrastructure industry typically follow those in the general economy. According to data from the U.S. Energy Information Administration, sales and the revenue from the sale of electricity to customers has slowed with an annual decline in sales of 1.2% and an increase in revenue of 7.5%, respectively, in the last 12 months through July 2023 compared to July 2022. This decline in sales was driven by a drop in the residential and industrial sectors. The average price of electricity to industrial customers decreased 10.2% in July 2023 relative to last year. Higher energy input prices such as natural gas and coal became a headwind in 2022. Natural gas prices rose consistently in 2021 and 2022 because of reduced supply and additional demand for U.S. liquified natural gas from European countries. Coal prices also rapidly increased in 2022, driven by higher natural gas prices and additional overseas demand to offset limited Russian coal exports. Despite higher input costs, power producers are generally able to pass cost increases through higher retail electricity prices, which has contributed to the increase in electricity costs for retail customers throughout 2022. Oil and natural gas prices were volatile during much of 2022 but have moderated throughout 2023, contributing to modest declines in electricity prices this year as of July. Through September 30, 2023, Farmer Mac had not observed material degradation in the financial performance of its rural infrastructure portfolio, and that portfolio has never experienced a serious delinquency or default since inception.

Prospects for loan growth within the rural infrastructure segment are varied by industry. For electric cooperatives, ongoing normal-course capital expenditures related to maintaining and upgrading utility infrastructure are expected to continue at historical levels based on replacement and modernization of existing infrastructure. These growth opportunities may be affected by the demand for electric power in rural areas, capital expenditures by electric cooperatives driven by regulatory or technological changes, the changing interest rate environment, increased policy initiatives to support rural connectivity, and competitive dynamics within the rural utilities cooperative finance industry. Investment in rural telecommunications infrastructure continues to be robust for cooperative and non-cooperative providers due to their access to federally funded programs, such as USDA's Broadband Equity Access and Deployment Program (BEAD), the Federal Communications Commission's Rural Digital Opportunity Fund (RDOF), the USDA’s ReConnect, and the USDA’s Telecommunications Infrastructure Loan and Loan Guarantee program. In addition to capital projects spurred by these programs, Farmer Mac could see an increase in financing opportunities for other telecommunications providers in rural areas, with fiber line expansion and wireless broadband increasingly important to rural economic opportunity and precision agriculture.

Finally, the growth in renewable energy generation and deployment of energy storage technologies may continue to deepen Farmer Mac's relationships with existing customers through new business opportunities. According to data from the U.S. Energy Information Administration, renewable electricity capacity is expected to grow by 48% in the next five years, compared to total electric capacity growth of 10%. The rising cost of fossil fuel-based inputs combined with the falling costs of renewable power generation may hasten this increase in capacity along with recently enacted legislation, such as the Inflation Reduction Act of 2022 that incentivizes domestic production in clean energy technologies such as solar and wind. Because of these policy tailwinds, analytics from Bloomberg New Energy Finance (BNEF) estimate that investors will install nearly 400 gigawatts of renewable energy capacity between

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2023 and 2030. BNEF analysis also anticipates that nearly $2.5 trillion will be invested in renewable projects between 2021 and 2050. If realized, growth in renewable energy capacity may broaden Farmer Mac's customer base focused on financing renewable energy projects and companies. In response to this expected growth, Farmer Mac has deployed new financing products tailored to the renewable energy sector, which represents a new and growing market opportunity for Farmer Mac. Under this initiative, Farmer Mac's total outstanding loans and loan commitments of renewable energy financing transactions was $330.6 million as of September 30, 2023.

Legislative and Regulatory Outlook. Farmer Mac continues to monitor potential legislative and regulatory changes that could affect Farmer Mac or its stakeholders, including:

•The current farm bill expired on September 30, 2023. Covering a variety of programs impacting farm profitability, agricultural credit, and rural infrastructure, it is a critical piece of legislation for rural America and the agricultural sector which includes Farmer Mac's customers. Congress has started an extensive process to review programs that are included in the farm bill in preparation for reauthorization. Farmer Mac is seeking changes to its charter to enhance its partnerships and services in support of farmers, ranchers, agribusinesses, and rural infrastructure in this farm bill reauthorization.

•On October 5, 2023, FCA approved a final rule on cyber risk management. The rule requires an assessment of internal and external risk factors, identification of potential systems and software vulnerabilities, the establishment of a risk management program for the risks identified, development of a cyber risk training program, policies for managing third-party relationships, and the establishment of board reporting requirements. The effective date of the final rule is January 1, 2025.

•In the FCA's proposed 2023 regulatory agenda, the agency is targeting a proposed rulemaking on Farmer Mac's regulatory capital framework for May 2024. This timeline may change, and Farmer Mac's management team will continue to monitor the FCA's process for this potential rulemaking.

•Two of the three members of the FCA board are currently serving in holdover status because their terms have expired. These board members will continue to serve in their roles until replacements are nominated by the President and confirmed by the U.S. Senate.

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Balance Sheet Review

The following table summarizes Farmer Mac's balance sheet as of the periods indicated:

Table 21

	As of				Change
	September 30, 2023		December 31, 2022		$		%
	(in thousands)
Assets
Cash and cash equivalents	$	782,318	$	861,002	$	(78,684)	(9)	%
Investment securities	4,924,253		4,628,268		295,985		6	%
Farmer Mac Guaranteed Securities	9,216,111		8,628,380		587,731		7	%
USDA Securities	2,323,657		2,411,601		(87,944)		(4)	%
Loans, net of allowance	9,114,771		8,994,350		120,421		1	%
Loans held in trusts	1,422,402		1,211,116		211,286		17	%
Other	527,869		598,393		(70,524)		(12)	%
Total assets	$	28,311,381	$	27,333,110	$	978,271	4	%
Liabilities
Notes Payable	$	25,123,545	$	24,469,113	$	654,432	3	%
Debt securities of consolidated trusts held by third parties	1,334,014		1,181,948		152,066		13	%
Other	468,555		410,091		58,464		14	%
Total liabilities	$	26,926,114	$	26,061,152	$	864,962	3	%
Total equity	1,385,267		1,271,958		113,309		9	%
Total liabilities and equity	$	28,311,381	$	27,333,110	$	978,271	4	%

Assets. The increase in total assets was primarily attributable to new Farmer Mac Guaranteed Securities volume, new loan volume, including those held in consolidated trusts, and a larger investment portfolio.

Liabilities. The increase in total liabilities was primarily due to an increase in total notes payable to fund the acquisition of Farmer Mac Guaranteed Securities and loan volume, including those held in consolidated trusts.

Equity. The increase in total equity was primarily due to an increase in retained earnings and an increase in accumulated other comprehensive income.

Risk Management

Credit Risk – Loans and Guarantees.  

Agricultural Finance - Direct Credit Exposure

Farmer Mac's direct credit exposure to Agricultural Finance mortgage loans as of September 30, 2023 was $11.0 billion across 48 states. Farmer Mac applies credit underwriting standards and methodologies to help assess exposures to loan purchases, which may include collateral valuation, financial metrics, and other appropriate borrower financial and credit information. For Corporate AgFinance loans, which are often larger loan exposures to agriculture production and agribusinesses that support agriculture production, food and fiber processing, and other supply chain production, and which may have risk profiles that differ from smaller agricultural mortgage loans, Farmer Mac has implemented methodologies and parameters that help assess credit risk based on the appropriate sector, borrower construct, and

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transaction complexity. For more information about Farmer Mac's underwriting and collateral valuation standards for Agricultural Finance mortgage loans, see "Business—Farmer Mac's Lines of Business—Agricultural Finance—Underwriting and Collateral Standards—Farm & Ranch" and "Business—Farmer Mac's Lines of Business—Agricultural Finance—Underwriting and Collateral Standards—Corporate AgFinance" in Farmer Mac's 2022 Annual Report.

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. For Agricultural Finance mortgage loans to which Farmer Mac has direct credit exposure, Farmer Mac's 90-day delinquencies as of September 30, 2023, were $42.4 million (0.39% of the Agricultural Finance mortgage loan portfolio to which Farmer Mac has direct credit exposure), compared to $45.4 million (0.42% of the Agricultural Finance mortgage loan portfolio) as of June 30, 2023 and $43.5 million (0.41% of the Agricultural Finance mortgage loan portfolio) as of December 31, 2022. Those 90-day delinquencies consisted of 23 delinquent loans as of September 30, 2023, compared to 42 delinquent loans as of June 30, 2023 and 37 delinquent loans as of December 31, 2022. The decrease in the number of 90-day delinquencies was primarily driven by decreased delinquencies in storage and processing, livestock, and part-time farms and was partially offset by increased delinquencies in permanent plantings and crops. The top ten borrower exposures over 90 days delinquent represented over half of the 90-day delinquencies as of September 30, 2023. Farmer Mac believes that it remains adequately collateralized on its delinquent loans.

Farmer Mac's 90-day delinquency rate as of September 30, 2023 was below Farmer Mac's historical average. In the near-term, our delinquency rate may exceed our historical average due to changes in the agricultural or general economy or unforeseen and idiosyncratic events like adverse weather events. Farmer Mac's average 90-day delinquency rate as a percentage of its Agricultural Finance mortgage loan 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 ethanol loan portfolio.

The following table presents historical information about Farmer Mac's 90-day delinquencies in the Agricultural Finance mortgage loan portfolio compared to the unpaid principal balance of all Agricultural Finance mortgage loans to which Farmer Mac has direct credit exposure:

Table 22

	Agricultural Finance Mortgage Loans		90-Day Delinquencies		Percentage
	(dollars in thousands)
As of:
September 30, 2023	$	11,014,678	$	42,443	0.39	%
June 30, 2023	10,826,201		45,368		0.42	%
March 31, 2023	10,680,419		70,646		0.66	%
December 31, 2022	10,719,571		43,498		0.41	%
September 30, 2022	10,508,549		44,232		0.42	%
June 30, 2022	10,128,083		20,623		0.20	%
March 31, 2022	9,879,978		55,847		0.57	%
December 31, 2021	9,811,749		47,307		0.48	%
September 30, 2021	9,445,359		54,792		0.58	%

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Across all of Farmer Mac's lines of business, 90-day delinquencies represented 0.15% of total outstanding business volume as of September 30, 2023, compared to 0.17% as of December 31, 2022 and 0.17% as of September 30, 2022.

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The following table presents outstanding Agricultural Finance mortgage loans and 90-day delinquencies as of September 30, 2023 by year of origination, geographic region, commodity/collateral type, original loan-to-value ratio, and range in the size of borrower exposure:

Table 23

Agricultural Finance Mortgage Loans 90-Day Delinquencies as of September 30, 2023
	Distribution of Agricultural Loans		Agricultural Loans		90-Day Delinquencies(1)		Percentage
	(dollars in thousands)
By year of origination:
2013 and prior	7	%	$	754,821	$	2,861	0.38	%
2014	2	%	201,039		2,047		1.02	%
2015	3	%	323,275		9,585		2.96	%
2016	5	%	522,172		3,070		0.59	%
2017	5	%	520,982		—		—	%
2018	5	%	592,179		4,057		0.69	%
2019	7	%	830,527		12,177		1.47	%
2020	18	%	1,977,670		5,824		0.29	%
2021	24	%	2,608,527		931		0.04	%
2022	16	%	1,760,959		1,891		0.11	%
2023	8	%	922,527		—		0.11	%
Total	100	%	$	11,014,678	$	42,443	0.39	%
By geographic region(2):
Northwest	13	%	$	1,398,926	$	2,844	0.20	%
Southwest	30	%	3,321,507		22,000		0.66	%
Mid-North	26	%	2,883,439		4,845		0.17	%
Mid-South	18	%	1,941,821		10,355		0.53	%
Northeast	4	%	464,516		1,297		0.28	%
Southeast	9	%	1,004,469		1,102		0.11	%
Total	100	%	$	11,014,678	$	42,443	0.39	%
By commodity/collateral type:
Crops	49	%	$	5,436,386	$	19,628	0.36	%
Permanent plantings	22	%	2,397,576		18,007		0.75	%
Livestock	19	%	2,066,164		2,332		0.11	%
Part-time farm	4	%	471,934		2,476		0.52	%
Ag. Storage and Processing	6	%	625,774		—		—	%
Other	—	%	16,844		—		—	%
Total	100	%	$	11,014,678	$	42,443	0.39	%
By original loan-to-value ratio:
0.00% to 40.00%	20	%	$	2,206,837	$	4,081	0.18	%
40.01% to 50.00%	23	%	2,448,046		10,400		0.42	%
50.01% to 60.00%	35	%	3,867,086		20,708		0.54	%
60.01% to 70.00%	20	%	2,226,680		7,254		0.33	%
70.01% to 80.00%(3)	2	%	240,411		—		—	%
80.01% to 90.00%(3)	—	%	25,618		—		—	%
Total	100	%	$	11,014,678	$	42,443	0.39	%
By size of borrower exposure(4):
Less than $1,000,000	25	%	$	2,806,391	$	4,363	0.16	%
$1,000,000 to $4,999,999	37	%	4,095,503		18,360		0.45	%
$5,000,000 to $9,999,999	15	%	1,633,998		10,135		0.62	%
$10,000,000 to $24,999,999	13	%	1,399,862		9,585		0.68	%
$25,000,000 and greater	10	%	1,078,924		—		—	%
Total	100	%	$	11,014,678	$	42,443	0.39	%

(1)Includes loans held and loans underlying off-balance sheet Farmer Mac 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.

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(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.

Another indicator that Farmer Mac considers in analyzing the credit quality of its Agricultural Finance mortgage loans is the level of internally-rated "substandard" assets, both in dollars and as a percentage of the outstanding 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, 2023, Farmer Mac's Agricultural Finance mortgage loans (to which it has direct credit exposure) comprising substandard assets were $180.2 million (1.6% of the portfolio), compared to $194.6 million (1.8% of the portfolio) as of June 30, 2023, and $209.4 million (2.0% of the portfolio) as of December 31, 2022. Those substandard assets comprised 210 loans as of September 30, 2023, 239 loans as of June 30, 2023, and 243 loans as of December 31, 2022.

The decrease of $14.4 million in Agricultural Finance substandard assets during third quarter 2023 was primarily driven by a substandard loan payoff in our on-balance sheet portfolios. Agricultural Finance substandard assets decreased as a percentage of both our on-balance sheet and our off-balance sheet Agricultural Finance portfolios during third quarter 2023.

The percentage of Agricultural Finance substandard assets within the portfolio as of September 30, 2023 was below the historical average. Farmer Mac's average Agricultural Finance substandard assets as a percentage of its Agricultural Finance mortgage loans over the last 15 years is approximately 4%. 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 ethanol portfolio. 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 Agricultural Finance portfolio, which Farmer Mac believes is adequately collateralized.

Within Agricultural Finance, Farmer Mac considers a Farm & Ranch 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, 2023 and December 31, 2022, the average unpaid principal balances for Farm & Ranch loans outstanding and to which Farmer Mac has direct credit exposure was $800,000 and $806,000, 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 mortgage loans purchased during third quarter 2023 was 49%, compared to 47% for loans purchased during third quarter 2022. The weighted-average original loan-to-value ratio for Farm & Ranch mortgage loans and loans underlying off-balance sheet Farmer Mac Guaranteed Securities and LTSPCs was 50% and 51% as of September 30, 2023 and December 31, 2022, respectively. The weighted-average original loan-to-value ratio for all 90-day delinquencies was 54% and 46% as of September 30, 2023 and December 31, 2022, respectively.

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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 Agricultural Finance mortgage loans and loans underlying off-balance sheet Farmer Mac Guaranteed Securities and LTSPCs was 45% and 46% as of September 30, 2023 and December 31, 2022, respectively.

The following table presents the current loan-to-value ratios for the Agricultural Finance mortgage loans to which Farmer Mac has direct credit exposure, as disaggregated by internally assigned risk ratings:

Table 24

Agricultural Finance Mortgage Loans current loan-to-value ratio by internally assigned risk rating as of September 30, 2023
	Acceptable		Special Mention		Substandard		Total
	(in thousands)
Current loan-to-value ratio(1):
0.00% to 40.00%	$	3,383,689	$	100,328	$	57,113	$	3,541,130
40.01% to 50.00%	2,782,252		106,362		36,305		2,924,919
50.01% to 60.00%	2,803,606		109,240		46,605		2,959,451
60.01% to 70.00%	1,310,122		53,242		22,761		1,386,125
70.01% to 80.00%	158,890		13,056		13,453		185,399
80.01% and greater	12,953		778		3,923		17,654
Total	$	10,451,512	$	383,006	$	180,160	$	11,014,678

(1)The current loan-to-value ratio is based on original appraised value (or most recently obtained valuation, 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 Agricultural Finance mortgage loans as of September 30, 2023 by year of origination, geographic region, and commodity/collateral type. The purpose of this table is to present information about realized losses relative to original Farm & Ranch purchases, guarantees, and commitments.

Table 25

Agricultural Finance Mortgage Loans Credit Losses Relative to Cumulative
Original Loans, Guarantees, and LTSPCs as of September 30, 2023
	Cumulative Original Loans, Guarantees and LTSPCs		Cumulative Net Credit Losses/(Recoveries)		Cumulative Loss Rate
	(dollars in thousands)
By year of origination:
2013 and prior	$	18,729,043	$	33,785	0.18	%
2014	1,088,631		—		—	%
2015	1,251,414		(516)		(0.04)	%
2016	1,596,330		903		0.06	%
2017	1,708,843		4,311		0.25	%
2018	1,396,862		—		—	%
2019	1,630,441		—		—	%
2020	2,926,857		—		—	%
2021	3,325,688		—		—	%
2022	2,006,572		—		—	%
2023	1,057,544		—		—	%
Total	$	36,718,225	$	38,483	0.10	%
By geographic region(1):
Northwest	$	4,676,155	$	12,094	0.26	%
Southwest	12,270,175		8,542		0.07	%
Mid-North	9,112,740		17,165		0.19	%
Mid-South	5,315,291		(613)		(0.01)	%
Northeast	1,904,527		323		0.02	%
Southeast	3,439,337		972		0.03	%
Total	$	36,718,225	$	38,483	0.10	%
By commodity/collateral type:
Crops	$	16,890,404	$	3,790	0.02	%
Permanent plantings	7,952,588		9,783		0.12	%
Livestock	8,066,465		3,836		0.05	%
Part-time farm	1,909,960		1,090		0.06	%
Ag. Storage and Processing	1,730,020		19,984		1.16	%
Other	168,788		—		—	%
Total	$	36,718,225	$	38,483	0.10	%

(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 Agricultural Finance mortgage loans by commodity type within geographic region and cumulative credit losses by origination year and commodity type:

Table 26

	As of September 30, 2023
	Agricultural Finance Mortgage Loans 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	$	732,692		$	233,353		$	299,186		$	110,339		$	23,333		$	23		$	1,398,926
	6.7		%	2.1		%	2.7		%	1.0		%	0.2		%	—		%	12.7		%
Southwest	706,411			1,794,271			565,136			107,611			132,777			15,301			3,321,507
	6.5		%	16.3		%	5.1		%	1.0		%	1.2		%	0.1		%	30.2		%
Mid-North	2,359,328			10,746			256,906			83,326			171,805			1,328			2,883,439
	21.4		%	0.1		%	2.3		%	0.8		%	1.6		%	—		%	26.2		%
Mid-South	1,116,811			84,500			619,109			61,942			59,459			—			1,941,821
	10.1		%	0.8		%	5.6		%	0.6		%	0.5		%	—		%	17.6		%
Northeast	188,431			43,133			72,144			48,991			111,817			—			464,516
	1.7		%	0.4		%	0.7		%	0.4		%	1.0		%	—		%	4.2		%
Southeast	332,713			231,573			253,683			59,725			126,583			192			1,004,469
	3.0		%	2.1		%	2.4		%	0.5		%	1.1		%	—		%	9.1		%
Total	$5,436,386			$2,397,576			$2,066,164			$471,934			$625,774			$16,844			$11,014,678
	49.4		%	21.8		%	18.8		%	4.3		%	5.6		%	0.1		%	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 27

	As of September 30, 2023
	Agricultural Loans 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:
2013 and prior	$	3,427	$	9,783	$	3,836	$	1,066	$	15,673	$	33,785
2014	—		—		—		—		—		—
2015	(540)		—		—		24		—		(516)
2016	903		—		—		—		—		903
2017	—		—		—		—		4,311		4,311
2018	—		—		—		—		—		—
2019	—		—		—		—		—		—
2020	—		—		—		—		—		—
2021	—		—		—		—		—		—
2022	—		—		—		—		—		—
2023	—		—		—		—		—		—
Total	$	3,790	$	9,783	$	3,836	$	1,090	$	19,984	$	38,483

For more information about the credit quality of Farmer Mac's Agricultural Finance mortgage loans and the associated allowance for losses please refer to Note 5 and Note 6 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."

Rural Infrastructure Finance - Direct Credit Exposure

Farmer Mac's direct credit exposure to Rural Infrastructure Finance loans held and loans underlying LTSPCs as of September 30, 2023 was $3.8 billion across 45 states. For more information about Farmer Mac's underwriting and collateral valuation standards for Rural Infrastructure Finance loans, see "Business—Farmer Mac's Lines of Business—Rural Infrastructure Finance—Underwriting and Collateral Standards" in Farmer Mac's 2022 Annual Report. As of September 30, 2023, there were no delinquencies in Farmer Mac's portfolio of Rural Infrastructure Finance loans. As of September 30, 2023, there was one telecommunications loan downgraded to substandard, with an unpaid principal balance of $29.5 million.

Farmer Mac evaluates credit risk of Rural Infrastructure 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.

The following table disaggregates Farmer Mac’s portfolio of Rural Infrastructure loans by portfolio segment and by internally assigned risk ratings.

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Table 28

	As of September 30, 2023
	Rural Infrastructure Finance portfolio by internally assigned risk rating
	Acceptable		Special Mention		Substandard		Total
	(in thousands)
Distribution Cooperative	$	2,321,834	$	—	$	—	$	2,321,834
Generation and Transmission Cooperative	692,779		—		—		692,779
Renewable Energy	330,575		—		—		330,575
Telecommunications	455,548		—		29,494		485,042
Rural Infrastructure Total	$	3,800,736	$	—	$	29,494	$	3,830,230

For more information about the credit quality of Farmer Mac's Rural Infrastructure Finance 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 to the USDA Securities in the Agricultural Finance line of business because of the USDA guarantee. As of September 30, 2023, Farmer Mac had not experienced any credit losses on any USDA Securities or Farmer Mac Guaranteed USDA Securities 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 Securities.

Farmer Mac requires many lenders to make representations and warranties about the conformity of Agricultural Finance mortgage 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, 2023, 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 Finance mortgage loans (other than rural housing and part-time farm mortgage loans) and Rural Infrastructure Finance 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. For more information about Farmer Mac's loan eligibility requirements and underwriting standards, see "Business—Farmer Mac's Lines of Business—Agricultural Finance—Loan Eligibility," "Business—Farmer Mac's Lines of Business—Agricultural Finance—Underwriting and Collateral Standards—Farm & Ranch," "Business—Farmer Mac's Lines of Business—Agricultural Finance—Underwriting and Collateral Standards—Corporate AgFinance," and "Business—Farmer Mac's Lines of Business—Rural Infrastructure Finance—Underwriting and Collateral Standards" in Farmer Mac’s 2022 Annual Report.

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 material errors in the servicing of those loans. If a servicer materially breaches the terms of its servicing

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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, 2023, 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—Agricultural Finance—Loan Servicing" and "Business—Farmer Mac's Lines of Business—Rural Infrastructure Finance—Lenders and Loan Servicing" in Farmer Mac’s 2022 Annual Report.

Credit Risk – Counterparty Risk. 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 loans that become and remain (within specified parameters) delinquent in the payment of principal or interest and to substitute eligible loans that are current in payment or pay down the AgVantage securities to maintain the minimum required collateralization level. 

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. As a result, Farmer Mac has indirect credit exposure to the Agricultural Finance mortgage loans and Rural Infrastructure loans that secure AgVantage securities. For AgVantage counterparties that are institutional real estate investors or financial funds and other similar entities, Farmer Mac also typically requires that the counterparty (1) maintain a higher collateralization level, through either a higher overcollateralization percentage or lower loan-to-value ratio thresholds and (2) comply with specified financial covenants for the life of the related AgVantage security to avoid default. As of September 30, 2023, Farmer Mac had not experienced any credit losses on any AgVantage securities. For a more detailed description of AgVantage securities, see "Business—Farmer Mac's Lines of Business—Agricultural Finance—Other Products – Agricultural Finance—AgVantage Securities" and "Business—Farmer Mac's Lines of Business—Rural Infrastructure Finance—Other Products – Rural Infrastructure Finance—AgVantage Securities" in Farmer Mac’s 2022 Annual Report.

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The unpaid principal balance of outstanding on-balance sheet AgVantage securities secured by loans eligible for the Agricultural Finance line of business totaled $6.1 billion as of September 30, 2023 and $6.0 billion as of December 31, 2022. The unpaid principal balance of on-balance sheet AgVantage securities secured by loans eligible for the Rural Infrastructure Finance line of business totaled $3.6 billion as of September 30, 2023 and $3.0 billion as of December 31, 2022. The unpaid principal balance of outstanding off-balance sheet AgVantage securities totaled $1.1 million as of September 30, 2023 and $1.2 million as of December 31, 2022.

The following table provides information about the issuers of AgVantage securities and the required collateralization levels for those transactions as of September 30, 2023 and December 31, 2022:

Table 29

	As of September 30, 2023			As of December 31, 2022
Counterparty	Balance		Required Collateralization	Balance		Required Collateralization
	(dollars in thousands)
AgVantage:
CFC	$	3,618,640	100%	$	3,045,325	100%
MetLife	2,050,000		103%	2,050,000		103%
Rabo AgriFinance	2,935,000		105%	2,855,000		105%
Other(1)	1,083,173		100% to 125%	1,059,600		100% to 125%
Total outstanding	$	9,686,813		$	9,009,925

(1)Consists of AgVantage securities issued by 10 and 12 different issuers as of September 30, 2023 and December 31, 2022, 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 credit rating agency reports. For more information about Farmer Mac's lender eligibility requirements, see "Business—Farmer Mac's Lines of Business—Agricultural Finance—Lenders" and "Business—Farmer Mac's Lines of Business—Rural Infrastructure Finance—Lenders and Loan Servicing" in Farmer Mac’s 2022 Annual Report.

Farmer Mac manages institutional credit risk related to its interest rate swap counterparties through collateralization provisions contained in each of its swap agreements that vary 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, 2023, Farmer Mac had $0.8 billion of cash and cash equivalents and $4.9 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 regulations issued by the FCA found at 12 C.F.R. §§ 652.1-652.45 ("Liquidity and Investment Regulations"). In addition to establishing a portfolio of highly liquid investments as an available source of cash, the goals of Farmer Mac's investment

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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.

The Liquidity and Investment Regulations and Farmer Mac's 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.

The Liquidity and Investment Regulations and Farmer Mac's internal policies also establish concentration limits, which are intended to limit exposure to any single entity, issuer, or obligor. The 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 ($144.0 million as of September 30, 2023). However, Farmer Mac's current policy limits this total credit exposure to 5% of its regulatory capital ($72.0 million as of September 30, 2023). 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 interest-earning assets on its balance sheet because of timing differences in the cash flows due to maturity, paydown, or repricing of the assets and debt together with financial derivatives. 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 realize a decline in income if assets repay more slowly than originally forecasted and the associated maturing debt must be replaced by debt issuances at higher interest rates.

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 sensitivities 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 interest-earning assets, debt, and financial derivatives.

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, establishes guidelines, and approves strategies to maintain interest rate risk within the board-established limits.

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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 and help mitigate impacts from interest rate changes across the yield curve. As part of this strategy, Farmer Mac seeks to issue debt securities across a variety of maturities that together with financial derivatives closely align the forecasted debt and financial derivative cash flows with forecasted asset cash flows.

Farmer Mac issues discount notes and both callable and non-callable medium-term notes across a spectrum of maturities to execute its debt issuance strategy. Portions of Farmer Mac's callable debt is issued to mitigate prepayment risk associated with certain interest-earning assets held on balance sheet. In general, as interest rates decline, prepayments typically increase, and Farmer Mac is able to economically extinguish certain callable debt issuances. In addition, Farmer Mac enters into financial derivatives, primarily interest rate swaps, 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 interest-earning assets, Farmer Mac incorporates behavioral models when projecting and valuing cash flows associated with these assets. In recognition that 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 the timing of asset prepayments which may, in turn, impact durations and values of the assets. Declining interest rates generally result in increased prepayments, which shortens the duration of these assets, while rising interest rates generally result in lower prepayments, thereby extending the duration of the assets.

Farmer Mac is subject to interest rate risk on loans and securities it has committed to acquire but 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 assets, 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 these loans. Farmer Mac manages the interest rate risk exposure related to these loans by entering into exchange-traded futures contracts involving U.S. Treasury securities and other financial derivatives. Similarly, when Farmer Mac commits to sell certain assets, the associated interest rate exposure is primarily managed with exchange-traded futures contracts involving U.S. Treasury securities and other financial derivatives.

Farmer Mac's $0.8 billion of cash and cash equivalents held as of September 30, 2023 mature within three months. As of September 30, 2023, $3.1 billion of the $4.9 billion of investment securities (63%) were floating rate securities with rates that adjust within one year or fixed rate securities with original maturities between three months and one year. Farmer Mac's floating rate investment securities are funded with floating rate debt. 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 evaluates and conducts interest rate shock simulations on its portfolio of financial assets, debt, and financial derivatives and examines a variety of metrics to quantify and manage its exposure to interest rate risk. These metrics include sensitivity to interest rate movements on the market value of equity ("MVE") and forecasted net effective spread ("NES") as well as a duration gap analysis.

MVE represents management's estimate of the present value of all future cash flows from its current portfolio of 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. The MVE sensitivity analysis measures the degree to which the market values of Farmer Mac's assets, liabilities, and financial derivatives are estimated to change for a given change in interest rates.

Farmer Mac's NES simulation represents the difference between projected income over the next twelve months from the current portfolio of interest-earning assets and interest expense produced by the related funding, including associated financial derivatives. Farmer Mac's NES simulation may be impacted by changes in market interest rates resulting from timing differences between maturities and re-pricing characteristics of funded assets and debt together with the associated financial derivatives. The direction and magnitude of any such effect depends on the direction and magnitude of the change in interest rates across the yield curve as well as the composition of Farmer Mac's portfolio. The NES simulation 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, the NES simulation sensitivity statistics provide a short-term view of Farmer Mac's NES income sensitivity to interest rate shocks.

Duration is a measure of a financial instrument's fair value sensitivity to small changes in interest rates. Duration gap is calculated using the net estimated durations of Farmer Mac's interest-earning assets, debt, and financial derivatives. Duration gap quantifies the extent to which estimated fair value sensitivities are matched for interest-earning assets, debt and financial derivatives. 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 interest-earning assets is greater than the duration of its debt and financial derivatives. A positive duration gap indicates that with small changes in interest rate movements the fair value change of Farmer Mac's interest-earning assets is more sensitive than the fair value change of its debt and financial derivatives. Conversely, a negative duration gap indicates that with small changes in interest rate movements the fair value change of Farmer Mac's interest-earning assets are less sensitive than the fair value change of its debt and financial derivatives. A duration gap of zero indicates that with small changes in interest rate movements the fair value change of Farmer Mac's interest-earning assets is effectively offset by the fair value change of its debt and financial derivatives.

Each of the interest rate risk metrics is quantified using asset/liability models and derived based on management's best estimates of factors such as implied forward interest rates across the yield curve, interest rate volatility, and timing of asset prepayments and callable debt redemptions. Accordingly, these metrics are estimates rather than precise measurements. Actual results may differ to the extent there are material changes to Farmer Mac's financial asset portfolio or changes in funding or hedging 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, 2023 and December 31, 2022 to an immediate and instantaneous uniform or "parallel" shift in the yield curve:

Table 30

	Percentage Change in MVE from Base Case
Interest Rate Scenario	As of September 30, 2023		As of December 31, 2022
+100 basis points	(4.0)	%	(3.7)	%
-100 basis points	3.5	%	2.7	%

	Percentage Change in NES from Base Case
Interest Rate Scenario	As of September 30, 2023		As of December 31, 2022
+100 basis points	(0.2)	%	0.4	%
-100 basis points	0.1	%	(0.6)	%

As of September 30, 2023, Farmer Mac's duration gap was positive 3.8 months, compared to positive 3.6 months as of December 31, 2022. Interest rates within the yield curve increased during the first nine months of 2023, as the 2-year U.S. Treasury Note yield-to-maturity increased by approximately 62 basis points and the 10-year U.S. Treasury Note yield-to-maturity decreased by approximately 70 basis points versus year-end 2022. This rate movement contributed to lengthening the duration of Farmer Mac's funded assets compared to its debt and financial derivatives, thereby widening Farmer Mac's 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 typically enters into the following types of financial derivative transactions principally to protect against risk from the effects of market price or interest rate movements on the value of interest-earning assets, future cash flows, and debt issuance, and 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;

•"basis swaps," in which Farmer Mac pays floating rates of interest based on one index to, and receives floating rates of interest based on a different index from, counterparties; and

•exchange-traded futures contracts involving U.S. Treasury securities.

As of September 30, 2023, Farmer Mac had $24.5 billion combined notional amount of interest rate swaps, with terms ranging from less than one year to just over thirty years, of which $9.6 billion were pay-fixed interest rate swaps, $14.0 billion were receive-fixed interest rate swaps, and $0.9 billion were basis swaps.

Farmer Mac enters into interest rate swaps to more closely match the cash flow and duration characteristics of its interest-earning assets with those of its debt. For example, Farmer Mac transacts pay-fixed interest rate swaps and issues floating rate debt to effectively create fixed rate funding that approximately matches the duration of the corresponding fixed rate assets being funded. Farmer Mac evaluates the overall cost of using interest rate swaps in conjunction with debt issuance as a funding

108

alternative to duration-matched debt and enters into interest rate swaps to manage interest rate risks across the balance sheet.

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. 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 undesignated financial derivatives are reported in "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 floating 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 interest rate swap transactions are conducted under standard collateralized agreements that limit Farmer Mac's potential credit exposure to any counterparty. As of both September 30, 2023 and December 31, 2022, Farmer Mac had no uncollateralized net exposures based on the mark-to-market value of the portfolio of interest rate swaps.

Re-funding and repricing risk

Farmer Mac is subject to re-funding and repricing risk on any floating rate assets that are not funded to contractual maturity. Re-funding and repricing risk arises from potential changes in funding costs resulting from a funding strategy whereby Farmer Mac issues floating rate debt across a variety of maturities to fund floating rate or synthetically floating rate assets that on average may have longer maturities. Changes in Farmer Mac's funding costs relative to the benchmark market index rate to which the assets are indexed can cause changes to net interest income when debt matures and is reissued at then current interest rates to continue funding those assets.

Farmer Mac is 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 floating rate assets that require floating rate funding.

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

•issuing short-term fixed rate 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

109

•issuing non-maturity matched, fixed rate discount notes or medium-term notes swapped to floating rate to match the interest rate reset dates of the assets.

To meet certain floating rate funding needs, Farmer Mac frequently issues shorter-term floating-rate medium-term notes or fixed rate medium-term notes paired with a received-fixed interest rate swap because these funding alternatives 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 debt issuance and liquidity management strategies. However, if the funding cost of Farmer Mac’s discount notes or medium-term notes increased relative to the benchmark market index of the associated assets 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 of net effective spread. Conversely, if the funding cost on Farmer Mac’s discount notes or medium-term notes decreased relative to the benchmark market index during that time, Farmer Mac would benefit from a commensurate increase to net effective spread.

Farmer Mac's debt 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. Farmer Mac regularly adjusts its funding strategies to mitigate the effects of interest rate variability and seeks to maintain an effective mixture of funding structures in the context of its overall liability and liquidity management strategies.

As of September 30, 2023, Farmer Mac held $7.9 billion of floating rate assets in its lines of business and its investment portfolio that reset based on floating rate market indices, such as SOFR. As of the same date, Farmer Mac also had $9.6 billion of interest rate swaps outstanding where Farmer Mac pays a fixed rate of interest and receives a floating rate of interest, primarily SOFR.

Discontinuation of LIBOR

Farmer Mac has not had, and does not foresee, a material impact on our business due to the replacement of LIBOR with SOFR. We had no further variable LIBOR exposure as of September 30, 2023.

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 repayments of AgVantage and investment securities. Farmer Mac regularly accesses the debt capital markets for funding, and Farmer Mac has maintained steady access to the debt capital markets throughout 2023. 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 debt capital markets. As of September 30, 2023, Farmer Mac had outstanding discount notes of $1.5 billion, medium-term notes that mature within one year of $6.4 billion, and medium-term notes that mature after one year of $17.6 billion.

Assuming continued access to the debt 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 has a contingency funding plan to manage unanticipated disruptions in its access to the debt capital markets. Farmer Mac must maintain a minimum of 90 days of liquidity under the Liquidity and

110

Investment Regulations. In accordance with the methodology for calculating available days of liquidity under those regulations, Farmer Mac maintained a monthly average of 293 days of liquidity throughout third quarter 2023 and had 297 days of liquidity as of September 30, 2023.

Farmer Mac maintains cash, cash equivalents (including U.S. Treasury securities, operational deposits, 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.

The following table presents these assets as of September 30, 2023 and December 31, 2022:

Table 31

	As of September 30, 2023		As of December 31, 2022
	(in thousands)
Cash and cash equivalents	$	782,318	$	861,002
Investment securities:
Guaranteed by U.S. Government and its agencies	1,348,081		1,444,650
Guaranteed by GSEs	3,551,332		3,160,919
Asset-backed securities	19,033		19,027
Total	$	5,700,764	$	5,485,598

The objectives of the investment portfolio as of September 30, 2023 and December 31, 2022 are to provide a level of liquidity that mitigates enterprise risk, provides a reliable source of short-term and long-term liquidity, to prepare for the possibility of future volatility in the debt capital markets, and to support program asset growth.

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, 2023, Farmer Mac was in compliance with its statutory capital requirements and was classified as within "level 1" (the highest compliance level).

In accordance with the 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, 2023 and 2022, Farmer Mac's Tier 1 capital ratio was 16.0% and 14.9%, respectively. As of September 30, 2023, Farmer Mac was in compliance with its capital adequacy policy. Farmer Mac does not expect its compliance on an ongoing basis with the 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.

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For more information about the capital requirements applicable to Farmer Mac, its capital adequacy policy, and the FCA's rule on capital planning, see "Business—Government Regulation of Farmer Mac—Capital Standards" in Farmer Mac's 2022 Annual Report. See Note 8 to the consolidated financial statements for more information about Farmer Mac's capital position.

Other Matters

None.

Supplemental Information

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

Table 32

New Business Volume
	Agricultural Finance				Rural Infrastructure Finance
	Farm & Ranch		Corporate AgFinance		Rural Utilities		Renewable Energy		Total
	(in thousands)
For the quarter ended:
September 30, 2023	$	1,384,273	$	275,932	$	607,979	$	17,390	$	2,285,574
June 30, 2023	1,574,169		218,136		294,292		71,611		2,158,208
March 31, 2023	750,040		203,211		683,232		89,747		1,726,230
December 31, 2022	1,114,255		165,395		140,222		43,737		1,463,609
September 30, 2022	1,927,209		169,932		547,117		61,653		2,705,911
June 30, 2022	1,418,397		107,916		326,899		35,307		1,888,519
March 31, 2022	2,452,539		103,353		377,965		41,636		2,975,493
December 31, 2021	2,075,540		411,838		631,338		12,594		3,131,310
September 30, 2021	1,791,662		122,043		609,745		4,152		2,527,602
For the year ended:
December 31, 2022	$	6,912,400	$	546,596	$	1,392,203	$	182,333	$	9,033,532
December 31, 2021	5,881,049		880,232		1,823,295		43,671		8,628,247

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Table 33

Repayments of Assets
	Agricultural Finance				Rural Infrastructure Finance
	Farm & Ranch		Corporate AgFinance		Rural Utilities		Renewable Energy		Total
	(in thousands)
For the quarter ended:
Scheduled	$	922,223	$	110,383	$	80,998	$	14,716	$	1,128,320
Unscheduled	108,960		104,999		20,578		—		234,537
September 30, 2023	$	1,031,183	$	215,382	$	101,576	$	14,716	$	1,362,857
Scheduled	$	1,050,480	$	81,386	$	558,944	$	52,203	$	1,743,013
Unscheduled	96,507		55,976		13,138		—		165,621
June 30, 2023	$	1,146,987	$	137,362	$	572,082	$	52,203	$	1,908,634
Scheduled	$	279,676	$	78,482	$	95,809	$	11,424	$	465,391
Unscheduled	231,288		128,254		57,354		—		416,896
March 31, 2023	$	510,964	$	206,736	$	153,163	$	11,424	$	882,287
Scheduled	$	447,976	$	64,308	$	75,671	$	9,809	$	597,764
Unscheduled	136,245		132,366		1,201		—		269,812
December 31, 2022	$	584,221	$	196,674	$	76,872	$	9,809	$	867,576
Scheduled	$	724,580	$	38,018	$	422,917	$	13,429	$	1,198,944
Unscheduled	296,763		64,439		—		—		361,202
September 30, 2022	$	1,021,343	$	102,457	$	422,917	$	13,429	$	1,560,146
Scheduled	$	1,114,779	$	42,162	$	159,491	$	7,898	$	1,324,330
Unscheduled	286,303		30,203		1,791		—		318,297
June 30, 2022	$	1,401,082	$	72,365	$	161,282	$	7,898	$	1,642,627
Scheduled	$	1,535,369	$	39,480	$	266,349	$	7,790	$	1,848,988
Unscheduled	434,794		60,947		397		—		496,138
March 31, 2022	$	1,970,163	$	100,427	$	266,746	$	7,790	$	2,345,126
Scheduled	$	928,663	$	205,778	$	816,802	$	18,526	$	1,969,769
Unscheduled	318,024		48,042		—		—		366,066
December 31, 2021	$	1,246,687	$	253,820	$	816,802	$	18,526	$	2,335,835
Scheduled	$	725,713	$	406,285	$	95,443	$	4,043	$	1,231,484
Unscheduled	374,287		—		201		—		374,488
September 30, 2021	$	1,100,000	$	406,285	$	95,644	$	4,043	$	1,605,972
For the year ended:
Scheduled	$	3,822,704	$	183,968	$	924,428	$	38,926	$	4,970,026
Unscheduled	1,154,105		287,955		3,389		—		1,445,449
December 31, 2022	$	4,976,809	$	471,923	$	927,817	$	38,926	$	6,415,475
Scheduled	$	2,756,150	$	872,458	$	1,237,984	$	29,944	$	4,896,536
Unscheduled	1,603,355		134,053		4,132		—		1,741,540
December 31, 2021	$	4,359,505	$	1,006,511	$	1,242,116	$	29,944	$	6,638,076

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Table 34

Outstanding Business Volume
	Agricultural Finance				Rural Infrastructure Finance
	Farm & Ranch		Corporate AgFinance		Rural Utilities		Renewable Energy		Total
	(in thousands)
As of:
September 30, 2023	$	18,461,835	$	1,741,306	$	7,118,295	$	330,575	$	27,652,011
June 30, 2023	18,116,503		1,680,756		6,611,892		327,901		26,737,052
March 31, 2023	17,685,961		1,599,982		6,889,682		308,493		26,484,118
December 31, 2022	17,728,792		1,603,507		6,359,613		230,170		25,922,082
September 30, 2022	17,199,347		1,634,786		6,296,263		196,242		25,326,638
June 30, 2022	16,591,999		1,567,311		6,172,063		148,018		24,479,391
March 31, 2022	16,575,595		1,540,760		6,006,446		120,609		24,243,410
December 31, 2021	16,094,639		1,537,834		5,895,227		86,763		23,614,463
September 30, 2021	15,565,589		1,379,816		6,080,691		92,695		23,118,791

Table 35

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, 2023	$	13,727,280	$	3,019,317	$	6,255,690	$	23,002,287
June 30, 2023	13,721,129		3,003,560		5,493,104		22,217,793
March 31, 2023	13,607,740		3,020,229		5,924,032		22,552,001
December 31, 2022	13,693,810		3,031,288		5,251,427		21,976,525
September 30, 2022	13,810,162		2,960,596		4,644,958		21,415,716
June 30, 2022	13,798,771		2,939,467		3,993,956		20,732,194
March 31, 2022	14,174,611		2,858,521		3,443,816		20,476,948
December 31, 2021	13,228,675		2,896,014		3,695,269		19,819,958
September 30, 2021	12,921,572		2,872,499		3,818,550		19,612,621

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

Table 36

	Net Effective Spread(1)
	Agricultural Finance								Rural Infrastructure Finance								Treasury
	Farm & Ranch				Corporate AgFinance				Rural Utilities				Renewable Energy				Funding				Investments				Net Effective Spread
	Dollars		Yield		Dollars		Yield		Dollars		Yield		Dollars		Yield		Dollars		Yield		Dollars		Yield		Dollars		Yield
	(dollars in thousands)
For the quarter ended:
September 30, 2023(2)	$	32,718	0.97	%	$	8,250	2.05	%	$	6,362	0.39	%	$	1,150	1.46	%	$	34,412	0.49	%	$	532	0.04	%	$	83,424	1.20	%
June 30, 2023	34,388		1.03	%	7,444		1.92	%	5,808		0.38	%	1,100		1.47	%	32,498		0.48	%	594		0.04	%	81,832		1.20	%
March 31, 2023	32,465		0.97	%	7,148		1.94	%	5,507		0.36	%	858		1.53	%	31,738		0.47	%	(543)		(0.04)	%	77,173		1.15	%
December 31, 2022	32,770		0.98	%	7,471		1.94	%	4,960		0.34	%	935		1.76	%	27,656		0.42	%	(2,689)		(0.19)	%	71,103		1.07	%
September 30, 2022(2)	33,343		1.04	%	7,600		1.99	%	4,220		0.30	%	705		1.97	%	22,564		0.36	%	(2,791)		(0.21)	%	65,641		1.03	%
June 30, 2022	32,590		1.05	%	6,929		1.87	%	3,733		0.27	%	468		1.78	%	18,508		0.30	%	(1,282)		(0.10)	%	60,946		0.99	%
March 31, 2022	30,354		1.02	%	7,209		1.96	%	3,159		0.23	%	375		1.69	%	16,738		0.28	%	4		—	%	57,839		0.97	%
December 31, 2021	28,998		0.99	%	6,321		1.84	%	2,521		0.19	%	356		1.53	%	15,979		0.28	%	158		0.01	%	54,333		0.94	%
September 30, 2021	28,914		1.06	%	7,163		1.80	%	2,067		0.16	%	236		1.09	%	17,386		0.31	%	159		0.01	%	55,925		0.99	%

(1)Farmer Mac excludes the Corporate segment in the presentation above because the segment does not have any interest-earning assets.

(2)See Note 10 to the consolidated financial statements for a reconciliation of GAAP net interest income by segment to net effective spread by segment for the three months ended September 30, 2023 and 2022.

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

Table 37

	Core Earnings by Quarter End
	September 2023		June 2023		March 2023		December 2022		September 2022		June 2022		March 2022		December 2021		September 2021
	(in thousands)
Revenues:
Net effective spread	$	83,424	$	81,832	$	77,173	$	71,103	$	65,641	$	60,946	$	57,839	$	54,333	$	55,925
Guarantee and commitment fees	4,828		4,581		4,654		4,677		4,201		4,709		4,557		4,637		4,322
Gains on sale of mortgage loans	—		—		—		—		—		—		—		6,539		—
Other	1,056		409		1,067		390		473		307		514		241		687
Total revenues	89,308		86,822		82,894		76,170		70,315		65,962		62,910		65,750		60,934
Credit related expense/(income):
(Release of)/provision for losses	(181)		1,142		750		1,945		450		(1,535)		(54)		(1,428)		255
REO operating expenses	—		—		—		819		—		—		—		—		—
Total credit related expense/(income)	(181)		1,142		750		2,764		450		(1,535)		(54)		(1,428)		255
Operating expenses:
Compensation and employee benefits	14,103		13,937		15,351		12,105		11,648		11,715		13,298		11,246		10,027
General and administrative	9,100		9,420		7,527		8,055		6,919		7,520		7,278		8,492		6,330
Regulatory fees	831		831		835		832		812		813		812		812		750
Total operating expenses	24,034		24,188		23,713		20,992		19,379		20,048		21,388		20,550		17,107
Net earnings	65,455		61,492		58,431		52,414		50,486		47,449		41,576		46,628		43,572
Income tax expense	13,475		12,539		12,756		11,210		10,303		9,909		9,024		9,809		9,152
Preferred stock dividends	6,792		6,791		6,791		6,791		6,791		6,792		6,791		6,792		6,774
Core earnings	$	45,188	$	42,162	$	38,884	$	34,413	$	33,392	$	30,748	$	25,761	$	30,027	$	27,646
Reconciling items:
Gains/(losses) on undesignated financial derivatives due to fair value changes	$	2,921	$	2,141	$	916	$	1,596	$	6,441	$	2,846	$	2,612	$	(1,242)	$	(405)
Gains/(losses) on hedging activities due to fair value changes	3,210		(4,901)		(105)		(148)		(624)		428		5,687		(2,079)		1,818
Unrealized gains/(losses) on trading assets	1,714		(57)		359		31		(757)		(285)		94		(76)		36
Net effects of amortization of premiums/discounts and deferred gains on assets consolidated at fair value	29		29		29		57		24		(62)		20		71		23
Net effects of terminations or net settlements on financial derivatives	(79)		583		523		1,268		(3,522)		2,536		15,512		(429)		(351)
Income tax effect related to reconciling items	(1,638)		464		(362)		(590)		(327)		(1,148)		(5,024)		789		(236)
Net income attributable to common stockholders	$	51,345	$	40,421	$	40,244	$	36,627	$	34,627	$	35,063	$	44,662	$	27,061	$	28,531

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

116

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, 2023.

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, 2023.

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, 2023 that have materially affected, or are reasonably likely to materially affect, Farmer Mac's internal control over financial reporting.

117

PART II

Item 1.Legal Proceedings

None.

Item 1A.Risk Factors

Information about risk factors can be found in “Management’s Discussion and Analysis of Financial

Condition and Results of Operations—Forward-Looking Statements” in Part I, Item 2 of this Form 10-Q

and in Part I, Item 1A of Farmer Mac’s 2022 Annual Report.

Item 2.Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities

(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 2023, the following transactions occurred related to Farmer Mac's equity securities that were not

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 451 shares of its Class C non-voting common stock in July 2023 to the seven

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 $143.74 per share, which was the closing price of the

Class C non-voting common stock on June 30, 2023 (the last trading day of the previous quarter) as

reported by the New York Stock Exchange.

On September 29, 2023, Farmer Mac granted an aggregate of 2,979 time-vested restricted stock units of Farmer Mac’s Class C non-voting common stock ("RSUs") to 77 employees under Farmer Mac's Amended and Restated 2008 Omnibus Incentive Plan. Those RSUs will vest in three equal installments on March 31, 2024, March 31, 2025, and March 31, 2026 if those individuals are employed by Farmer Mac on those dates.

(b)     Not applicable.

(c)     None.

Item 3.Defaults Upon Senior Securities

(a)    None.

(b)    None.

118

Item 4.Mine Safety Disclosures

Not applicable.

Item 5.Other Information

Director and Officer Trading Arrangements

None of our directors or executive officers (as defined in Rule 16a-1(f) under the Exchange Act) adopted or terminated a Rule 10b5-1 trading arrangement or a non-Rule 10b5-1 trading arrangement (as defined in Item 408(c) of Regulation S-K) during the quarterly period covered by this report.

119

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 3.2 to Form 10-K filed February 24, 2023).
*	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 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).
*	4.4.1	—	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).
*	4.5	—	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).
*	4.5.1	—	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).
*	4.6	—	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).
*	4.6.1	—	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).
*	4.7	—	Specimen Certificate for 5.250% Non-Cumulative Preferred Stock, Series F (Previously filed as Exhibit 4.8 to Form 10-Q filed November 9, 2020).
*	4.7.1	—	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).
*	4.8		Specimen Certificate for 4.875% Non-Cumulative Preferred Stock, Series G (Previously filed as Exhibit 4.8 to Form 10-Q filed August 5, 2021).
*	4.8.1		Certificate of Designation of Terms and Conditions of 4.875% Non-Cumulative Preferred Stock, Series G (Previously filed as Exhibit 4.1 to Form 8-A filed May 27, 2021).
*	4.9	—	Description of the Registrant's securities that are registered under Section 12 of the Securities Exchange Act of 1934 (Previously filed as Exhibit 4.9 to Form 10-Q filed August 5, 2021).
**	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, 2023, 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, 2023, 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, 2023, 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

*	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.

120

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 6, 2023
By:	Bradford T. Nordholm
	President and Chief Executive Officer
	(Principal Executive Officer)
/s/ Aparna Ramesh		November 6, 2023
By:	Aparna Ramesh
	Executive Vice President – Chief Financial Officer and Treasurer
	(Principal Financial Officer)

121

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, 2023;

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 6, 2023

/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, 2023;

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 6, 2023

/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, 2023 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 6, 2023

XML

COVER PAGE - shares	9 Months Ended
	Sep. 30, 2023	Oct. 31, 2023
Entity Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2023
Document Transition Report	false
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.
Entity Address, Address Line Two	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
Entity Central Index Key	0000845877
Document Fiscal Year Focus	2023
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		9,309,771
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
4.875% Non-Cumulative Preferred Stock, Series G
Entity Information [Line Items]
Title of 12(b) Security	4.875% Non-Cumulative Preferred Stock, Series G
Trading Symbol	AGM.PRG
Security Exchange Name	NYSE
Class B voting common stock
Entity Information [Line Items]
Entity Common Stock, Shares Outstanding		500,301

XML

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Assets:
Cash and cash equivalents	$ 782,318	$ 861,002
Loans:
Loans held for investment, at amortized cost	9,130,933	9,008,979
Loans held for investment in consolidated trusts, at amortized cost	1,422,854	1,211,576
Allowance for losses	(16,614)	(15,089)
Total loans, net of allowance	10,537,173	10,205,466
Financial derivatives, at fair value	28,855	37,409
Accrued interest receivable (includes $10,666 and $12,514, respectively, related to consolidated trusts)	230,523	229,061
Guarantee and commitment fees receivable	49,809	47,151
Deferred tax asset, net	4,711	18,004
Prepaid expenses and other assets	213,971	266,768
Total Assets	28,311,381	27,333,110
Liabilities:
Notes payable	25,123,545	24,469,113
Debt securities of consolidated trusts held by third parties	1,334,014	1,181,948
Financial derivatives, at fair value	188,362	175,326
Accrued interest payable (includes $6,568 and $8,081, respectively, related to consolidated trusts)	172,150	117,887
Guarantee and commitment obligation	47,607	46,582
Accounts payable and accrued expenses	58,776	68,863
Reserve for losses	1,660	1,433
Total Liabilities	26,926,114	26,061,152
Commitments and Contingencies (Note 6)
Common stock:
Additional paid-in capital	130,921	128,939
Accumulated other comprehensive loss, net of tax	(35,839)	(50,843)
Retained earnings	794,814	698,530
Total Equity	1,385,267	1,271,958
Total Liabilities and Equity	28,311,381	27,333,110
Series C
Preferred stock:
Preferred stock	73,382	73,382
Series D
Preferred stock:
Preferred stock	96,659	96,659
Series E
Preferred stock:
Preferred stock	77,003	77,003
Series F
Preferred stock:
Preferred stock	116,160	116,160
Series G
Preferred stock:
Preferred stock	121,327	121,327
Class A voting common stock
Common stock:
Common stock	1,031	1,031
Class B voting common stock
Common stock:
Common stock	500	500
Class C non-voting common stock
Common stock:
Common stock	9,309	9,270
Investment securities:
Assets:
Fair Value	4,873,414	4,579,564
Held-to-maturity, at amortized cost	45,032	45,032
Other investments	5,807	3,672
Total Securities	4,924,253	4,628,268
Farmer Mac Guaranteed Securities:
Assets:
Fair Value	5,058,697	7,607,226
Held-to-maturity, at amortized cost	4,157,414	1,021,154
Total Securities	9,216,111	8,628,380
USDA Securities:
Assets:
Held-to-maturity, at amortized cost	2,322,355	2,409,834
Trading, at fair value	1,302	1,767
Total Securities	$ 2,323,657	$ 2,411,601

XML

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Interest receivable - consolidated trusts amount	$ 230,523	$ 229,061
Accrued interest payable - consolidated trusts amount	$ 172,150	$ 117,887
Series C
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, 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, 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, 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
Series G
Preferred stock, par value (in dollars per share)	$ 25	$ 25
Preferred stock, shares authorized (in shares)	5,000,000	5,000,000
Preferred stock, shares issued (in shares)	5,000,000	5,000,000
Preferred stock, shares outstanding (in shares)	5,000,000	5,000,000
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
Class B voting common stock
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)	9,309,351	9,270,265
Consolidated VIE
Interest receivable - consolidated trusts amount	$ 10,666	$ 12,514
Accrued interest payable - consolidated trusts amount	6,568	8,081
Available-for-Sale Securities
Amortized cost of available-for-sale investment securities	5,114,476	4,769,426
Farmer Mac Guaranteed Securities:
Amortized cost of available-for-sale investment securities	$ 5,536,437	$ 8,019,495

XML

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Interest income:
Investments and cash equivalents	$ 79,947	$ 21,581	$ 209,429	$ 38,497
Farmer Mac Guaranteed Securities and USDA Securities	161,351	74,695	442,649	169,231
Loans	140,513	97,514	388,837	241,393
Total interest income	381,811	193,790	1,040,915	449,121
Total interest expense	294,168	125,937	795,537	251,816
Net interest income	87,643	67,853	245,378	197,305
Release of/(provision for) losses	136	(617)	(1,484)	699
Net interest income after release of/(provision for) losses	87,779	67,236	243,894	198,004
Non-interest income/(expense):
Guarantee and commitment fees	5,520	2,643	12,942	9,551
Gains on financial derivatives	2,671	772	4,763	21,551
(Losses)/gains on trading securities	(2)	(41)	14	(75)
Release of/(provision for) reserve for losses	45	167	(227)	440
Other income	1,271	651	3,239	1,805
Non-interest income	9,505	4,192	20,731	33,272
Operating expenses:
Compensation and employee benefits	14,103	11,648	43,391	36,661
General and administrative	9,100	6,919	26,047	21,717
Regulatory fees	831	812	2,497	2,437
Operating expenses	24,034	19,379	71,935	60,815
Income before income taxes	73,250	52,049	192,690	170,461
Income tax expense	15,113	10,631	40,306	35,735
Net income	58,137	41,418	152,384	134,726
Preferred stock dividends	(6,792)	(6,791)	(20,374)	(20,374)
Net income attributable to common stockholders	$ 51,345	$ 34,627	$ 132,010	$ 114,352
Earnings per common share:
Basic earnings per common share (in dollars per share)	$ 4.74	$ 3.21	$ 12.20	$ 10.61
Diluted earnings per common share (in dollars per share)	$ 4.69	$ 3.18	$ 12.08	$ 10.51

XML

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Statement of Comprehensive Income [Abstract]
Net income	$ 58,137	$ 41,418	$ 152,384	$ 134,726
Other comprehensive income/(loss):
Net unrealized gains/(losses) on available-for-sale securities	22,076	(41,827)	46,068	(158,273)
Net changes in held-to-maturity securities	(31,525)	(622)	(32,628)	220
Net unrealized gains on cash flow hedges	7,566	24,596	5,553	72,684
Other comprehensive (loss)/income before tax	(1,883)	(17,853)	18,993	(85,369)
Income tax benefit/(expense) related to other comprehensive (loss)/income	395	3,748	(3,989)	17,927
Other comprehensive (loss)/income net of tax	(1,488)	(14,105)	15,004	(67,442)
Comprehensive income	$ 56,649	$ 27,313	$ 167,388	$ 67,284

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CONSOLIDATED STATEMENTS OF EQUITY - USD ($) shares in Thousands, $ in Thousands	Total	Preferred Stock	Common Stock	Additional Paid-in Capital	Accumulated Other Comprehensive Income (Loss)	Retained Earnings
Beginning balance ( in shares) at Dec. 31, 2021		19,980	10,766
Beginning balance at Dec. 31, 2021	$ 1,213,700	$ 484,531	$ 10,766	$ 125,993	$ 3,853	$ 588,557
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net Income	51,453					51,453
Other comprehensive income/(loss) net of tax	(43,518)				(43,518)
Cash dividends, preferred stock	(6,791)					(6,791)
Cash dividends, common stock	(10,229)					(10,229)
Issuance of Class C Common Stock (in shares)			22
Issuance of Class C Common Stock	68		$ 22	46
Stock-based compensation cost	2,113			2,113
Other stock-based award activity	(1,049)			(1,049)
Ending balance (in shares) at Mar. 31, 2022		19,980	10,788
Ending balance at Mar. 31, 2022	1,205,747	$ 484,531	$ 10,788	127,103	(39,665)	622,990
Beginning balance ( in shares) at Dec. 31, 2021		19,980	10,766
Beginning balance at Dec. 31, 2021	1,213,700	$ 484,531	$ 10,766	125,993	3,853	588,557
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net Income	134,726
Other comprehensive income/(loss) net of tax	(67,442)
Ending balance (in shares) at Sep. 30, 2022		19,980	10,800
Ending balance at Sep. 30, 2022	1,232,023	$ 484,531	$ 10,800	128,117	(63,589)	672,164
Beginning balance ( in shares) at Mar. 31, 2022		19,980	10,788
Beginning balance at Mar. 31, 2022	1,205,747	$ 484,531	$ 10,788	127,103	(39,665)	622,990
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net Income	41,855					41,855
Other comprehensive income/(loss) net of tax	(9,819)				(9,819)
Cash dividends, preferred stock	(6,792)					(6,792)
Cash dividends, common stock	(10,256)					(10,256)
Issuance of Class C Common Stock (in shares)			9
Issuance of Class C Common Stock	55		$ 9	46
Stock-based compensation cost	862			862
Other stock-based award activity	(442)			(442)
Ending balance (in shares) at Jun. 30, 2022		19,980	10,797
Ending balance at Jun. 30, 2022	1,221,210	$ 484,531	$ 10,797	127,569	(49,484)	647,797
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net Income	41,418					41,418
Other comprehensive income/(loss) net of tax	(14,105)				(14,105)
Cash dividends, preferred stock	(6,791)					(6,791)
Cash dividends, common stock	(10,260)					(10,260)
Issuance of Class C Common Stock (in shares)			3
Issuance of Class C Common Stock	51		$ 3	48
Stock-based compensation cost	832			832
Other stock-based award activity	(332)			(332)
Ending balance (in shares) at Sep. 30, 2022		19,980	10,800
Ending balance at Sep. 30, 2022	1,232,023	$ 484,531	$ 10,800	128,117	(63,589)	672,164
Beginning balance ( in shares) at Dec. 31, 2022		19,980	10,801
Beginning balance at Dec. 31, 2022	1,271,958	$ 484,531	$ 10,801	128,939	(50,843)	698,530
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net Income	47,035					47,035
Other comprehensive income/(loss) net of tax	(9,019)				(9,019)
Cash dividends, preferred stock	(6,791)					(6,791)
Cash dividends, common stock	(11,882)					(11,882)
Issuance of Class C Common Stock (in shares)			19
Issuance of Class C Common Stock	70		$ 19	51
Stock-based compensation cost	2,254			2,254
Other stock-based award activity	(1,240)			(1,240)
Ending balance (in shares) at Mar. 31, 2023		19,980	10,820
Ending balance at Mar. 31, 2023	1,292,385	$ 484,531	$ 10,820	130,004	(59,862)	726,892
Beginning balance ( in shares) at Dec. 31, 2022		19,980	10,801
Beginning balance at Dec. 31, 2022	1,271,958	$ 484,531	$ 10,801	128,939	(50,843)	698,530
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net Income	152,384
Other comprehensive income/(loss) net of tax	15,004
Ending balance (in shares) at Sep. 30, 2023		19,980	10,840
Ending balance at Sep. 30, 2023	1,385,267	$ 484,531	$ 10,840	130,921	(35,839)	794,814
Beginning balance ( in shares) at Mar. 31, 2023		19,980	10,820
Beginning balance at Mar. 31, 2023	1,292,385	$ 484,531	$ 10,820	130,004	(59,862)	726,892
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net Income	47,212					47,212
Other comprehensive income/(loss) net of tax	25,511				25,511
Cash dividends, preferred stock	(6,791)					(6,791)
Cash dividends, common stock	(11,921)					(11,921)
Issuance of Class C Common Stock (in shares)			16
Issuance of Class C Common Stock	70		$ 16	54
Stock-based compensation cost	1,223			1,223
Other stock-based award activity	(1,134)			(1,134)
Ending balance (in shares) at Jun. 30, 2023		19,980	10,836
Ending balance at Jun. 30, 2023	1,346,555	$ 484,531	$ 10,836	130,147	(34,351)	755,392
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net Income	58,137					58,137
Other comprehensive income/(loss) net of tax	(1,488)				(1,488)
Cash dividends, preferred stock	(6,792)					(6,792)
Cash dividends, common stock	(11,923)					(11,923)
Issuance of Class C Common Stock (in shares)			4
Issuance of Class C Common Stock	68		$ 4	64
Stock-based compensation cost	1,221			1,221
Other stock-based award activity	(511)			(511)
Ending balance (in shares) at Sep. 30, 2023		19,980	10,840
Ending balance at Sep. 30, 2023	$ 1,385,267	$ 484,531	$ 10,840	$ 130,921	$ (35,839)	$ 794,814

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CONSOLIDATED STATEMENTS OF EQUITY (Parenthetical) - $ / shares	3 Months Ended
	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023	Dec. 31, 2022	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022
Statement of Stockholders' Equity [Abstract]
Common stock dividends per common share (in dollars per share)	$ 1.10	$ 1.10	$ 1.10	$ 0.95	$ 0.95	$ 0.95	$ 0.95

XML

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Cash flows from operating activities:
Net income	$ 152,384	$ 134,726
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	(11,456)	2,456
Amortization of debt premiums, discounts, and issuance costs	22,851	11,839
Net change in fair value of trading securities, hedged assets, and financial derivatives	340,035	665,775
Total provision for/(release of) allowance for losses	1,711	(1,139)
Excess tax benefits related to stock-based awards	470	87
Deferred income taxes	9,304	14,820
Stock-based compensation expense	4,699	3,807
Proceeds from repayment of loans purchased as held for sale	19,364	31,086
Net change in:
Interest receivable	(7,116)	(1,931)
Guarantee and commitment fees receivable	(1,633)	991
Other assets	(7,903)	(144,031)
Accrued interest payable	54,263	31,818
Custodial deposit liability	(31,489)	(41,392)
Other liabilities	(2,836)	(2,654)
Net cash provided by operating activities	542,648	706,258
Cash flows from investing activities:
Purchases of other investment securities	(2,135)	(877)
Purchases of loans held for investment	(1,520,116)	(2,122,360)
Proceeds from repayment of loans purchased as held for investment	1,081,265	1,077,209
Proceeds from sale of loans previously classified as held for investment	0	9,000
Proceeds from sale of Farmer Mac Guaranteed Securities	0	47,212
Net cash used in investing activities	(1,280,405)	(2,050,891)
Cash flows from financing activities:
Proceeds from issuance of discount notes	36,018,319	40,788,399
Proceeds from issuance of medium-term notes	5,559,198	6,866,487
Proceeds from third parties from issuance of debt securities of consolidated trusts	222,188	258,198
Payments to redeem discount notes	(35,059,286)	(42,096,456)
Payments to redeem medium-term notes	(5,931,450)	(4,261,315)
Payments to third parties on debt securities of consolidated trusts	(91,118)	(198,463)
Proceeds from common stock issuance	169	140
Tax payments related to share-based awards	(2,847)	(1,789)
Dividends paid on common and preferred stock	(56,100)	(51,119)
Net cash provided by financing activities	659,073	1,304,082
Net change in cash and cash equivalents	(78,684)	(40,551)
Cash and cash equivalents at beginning of period	861,002	908,785
Cash and cash equivalents at end of period	782,318	868,234
Non-cash activity:
Loans securitized as Farmer Mac Guaranteed Securities	10,573	47,212
Loans held for investment transferred to consolidated trusts	281,027	297,713
Reclassification of defaulted loans from loans held for investment in consolidated trusts to loans held for investment	3,078	1,781
Capitalized interest	0	446
Matured securities receivable	(77,445)	0
Charge-off from the allowance for losses	0	84
Borrowers' payments not yet received from servicers	(3,335)	0
Purchases of securities - traded, not yet settled	16,012	268,370
Transfers of available-for-sale Farmer Mac Guaranteed Securities to held-to-maturity	2,684,096	0
Available-for-sale securities
Cash flows from investing activities:
Purchases of securities	(1,381,795)	(1,789,932)
Proceeds from repayment of securities	1,146,861	1,103,046
Farmer Mac Guaranteed Securities and USDA Securities
Cash flows from investing activities:
Purchases of securities	(3,182,678)	(4,308,083)
Proceeds from repayment of securities	$ 2,578,193	$ 3,933,894

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Summary of Significant Accounting Policies

9 Months Ended

Sep. 30, 2023

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, 2022 consolidated balance sheet presented in this report has been derived

from Farmer Mac's audited 2022 consolidated financial statements, as revised. 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 2022 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, 2022, as filed with the SEC

on February 24, 2023. 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, 2023.

Principles of Consolidation

The consolidated financial statements include the accounts of Farmer Mac and its two subsidiaries: (1) Farmer Mac Mortgage Securities Corporation, 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 Securities included in the Agricultural Finance line of business. The consolidated financial statements also include the accounts of Variable Interest Entities ("VIEs") in which Farmer Mac determined itself to be the primary beneficiary.

Table 1.1

	Consolidation of Variable Interest Entities
	As of September 30, 2023
	Agricultural Finance		Treasury		Total
	(in thousands)
On-Balance Sheet:
Consolidated VIEs:
Loans held for investment in consolidated trusts, at amortized cost	$	1,422,854	$	—	$	1,422,854
Debt securities of consolidated trusts held by third parties (1)(2)	1,334,014		—		1,334,014
Unconsolidated VIEs:
Farmer Mac Guaranteed Securities:
Carrying value	39,131		—		39,131
Maximum exposure to loss (3)	38,689		—		38,689
Investment securities:
Carrying value (4)	—		3,532,286		3,532,286
Maximum exposure to loss (3) (4)	—		3,809,871		3,809,871
Off-Balance Sheet:
Unconsolidated VIEs:
Farmer Mac Guaranteed Securities:
Maximum exposure to loss (3) (5)	455,681		—		455,681

(1)Includes borrower remittances of $0.4 million. The borrower remittances had not been passed through to third-party investors as of September 30, 2023.

(2)Includes $89.2 million in unamortized discount related to structured securitization transactions.

(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, government-sponsored enterprise ("GSE")-guaranteed mortgage-backed securities, and other mission related investments.

(5)The amount under the Agricultural Finance line of business relates to unconsolidated trusts where it was determined that Farmer Mac was either not the primary beneficiary due to shared power with an unrelated party or a subordinate class majority holder has the unilateral right to remove Farmer Mac as Master Servicer without cause.

	Consolidation of Variable Interest Entities
	As of December 31, 2022
	Agricultural Finance		Treasury		Total
	(in thousands)
On-Balance Sheet:
Consolidated VIEs:
Loans held for investment in consolidated trusts, at amortized cost	$	1,211,576	$	—	$	1,211,576
Debt securities of consolidated trusts held by third parties (1)(2)	1,181,948		—		1,181,948
Unconsolidated VIEs:
Farmer Mac Guaranteed Securities:
Carrying value	28,466		—		28,466
Maximum exposure to loss (3)	31,208		—		31,208
Investment securities:
Carrying value (4)	—		3,138,619		3,138,619
Maximum exposure to loss (3) (4)	—		3,341,427		3,341,427
Off-Balance Sheet:
Unconsolidated VIEs:
Farmer Mac Guaranteed Securities:
Maximum exposure to loss (3) (5)	500,953		—		500,953

(1)Includes borrower remittances of $8.1 million. The borrower remittances had not been passed through to third-party investors as of December 31, 2022.

(2)Includes $37.7 million in unamortized discount related to a structured securitization transaction.

(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, government-sponsored enterprise ("GSE")-guaranteed mortgage-backed securities, and other mission related investments.

(5)The amount under the Agricultural Finance line of business relates to unconsolidated trusts where it was determined that Farmer Mac was either not the primary beneficiary due to shared power with an unrelated party or a subordinate class majority holder has the unilateral right to remove Farmer Mac as Master Servicer without cause.

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, 2023 and 2022:

Table 1.2

	For the Three Months Ended
	September 30, 2023					September 30, 2022
	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	$	51,345	10,839	$	4.74	$	34,627	10,799	$	3.21
Effect of dilutive securities(1)
SARs and restricted stock	—		99	(0.05)		—		75	(0.03)
Diluted EPS	$	51,345	10,938	$	4.69	$	34,627	10,874	$	3.18

(1)For the three months ended September 30, 2023 and 2022, SARs and restricted stock of 16,761 and 18,432 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, 2023 and 2022, contingent shares of unvested restricted stock of 32,469 and 18,535 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, 2023					September 30, 2022
	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	$	132,010	10,825	$	12.20	$	114,352	10,787	$	10.61
Effect of dilutive securities(1)
SARs and restricted stock	—		99	(0.12)		—		88	(0.10)
Diluted EPS	$	132,010	10,924	$	12.08	$	114,352	10,875	$	10.51

(1)For the nine months ended September 30, 2023 and 2022, SARs and restricted stock of 37,990 and 37,120 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, 2023 and 2022, contingent shares of unvested restricted stock of 32,407 and 18,535 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, 2023 and 2022.

Table 1.3

	As of September 30, 2023								As of September 30, 2022
	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	$	(96,607)	$	15,486	$	46,770	$	(34,351)	$	(98,924)	$	16,818	$	32,622	$	(49,484)
Other comprehensive income/(loss) before reclassifications	17,443		(25,199)		10,376		2,620		(33,041)		—		20,277		(12,764)
Amounts reclassified from AOCI	(4)		294		(4,398)		(4,108)		(2)		(492)		(847)		(1,341)
Net comprehensive income/(loss)	17,439		(24,905)		5,978		(1,488)		(33,043)		(492)		19,430		(14,105)
Ending Balance	$	(79,168)	$	(9,419)	$	52,748	$	(35,839)	$	(131,967)	$	16,326	$	52,052	$	(63,589)
For the Nine Months Ended:
Beginning Balance	$	(115,561)	$	16,357	$	48,361	$	(50,843)	$	(6,932)	$	16,153	$	(5,368)	$	3,853
Other comprehensive income/(loss) before reclassifications	36,406		(25,199)		16,277		27,484		(125,027)		—		55,766		(69,261)
Amounts reclassified from AOCI	(13)		(577)		(11,890)		(12,480)		(8)		173		1,654		1,819
Net comprehensive income/(loss)	36,393		(25,776)		4,387		15,004		(125,035)		173		57,420		(67,442)
Ending Balance	$	(79,168)	$	(9,419)	$	52,748	$	(35,839)	$	(131,967)	$	16,326	$	52,052	$	(63,589)

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, 2023 and 2022:

Table 1.4

	For the Three Months Ended
	September 30, 2023						September 30, 2022
	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	$	22,081	$	4,638	$	17,443	$	(41,824)	$	(8,783)	$	(33,041)
Less reclassification adjustments included in:
Net interest income(1)	—		—		—		—		—		—
Other income(2)	(5)		(1)		(4)		(3)		(1)		(2)
Total	$	22,076	$	4,637	$	17,439	$	(41,827)	$	(8,784)	$	(33,043)
Held-to-maturity securities:
Change in fair value(3)	$	(31,898)	$	(6,699)	$	(25,199)	$	—	$	—	$	—
Less reclassification adjustments included in:
Net interest income(4)	373		79		294		(622)		(130)		(492)
Total	$	(31,525)	$	(6,620)	$	(24,905)	$	(622)	$	(130)	$	(492)
Cash flow hedges
Unrealized gains on cash flow hedges	$	13,135	$	2,759	$	10,376	$	25,668	$	5,391	$	20,277
Less reclassification adjustments included in:
Net interest income(5)	(5,569)		(1,171)		(4,398)		(1,072)		(225)		(847)
Total	$	7,566	$	1,588	$	5,978	$	24,596	$	5,166	$	19,430
Other comprehensive loss	$	(1,883)	$	(395)	$	(1,488)	$	(17,853)	$	(3,748)	$	(14,105)

(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)Represents the accumulated unrealized loss on the AgVantage Securities transferred from available-for-sale to held-to-maturity.

(4)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.

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

	For the Nine Months Ended
	September 30, 2023						September 30, 2022
	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	$	46,084	$	9,678	$	36,406	$	(158,263)	$	(33,236)	$	(125,027)
Less reclassification adjustments included in:
Net interest income(1)	—		—		—		—		—		—
Other income(2)	(16)		(3)		(13)		(10)		(2)		(8)
Total	$	46,068	$	9,675	$	36,393	$	(158,273)	$	(33,238)	$	(125,035)
Held-to-maturity securities:
Change in fair value(3)	$	(31,898)	$	(6,699)	$	(25,199)	$	—	$	—	$	—
Less reclassification adjustments included in:
Net interest income(4)	(730)		(153)		(577)		220		47		173
Total	$	(32,628)	$	(6,852)	$	(25,776)	$	220	$	47	$	173
Cash flow hedges
Unrealized gains on cash flow hedges	$	20,604	$	4,327	$	16,277	$	70,590	$	14,824	$	55,766
Less reclassification adjustments included in:
Net interest income(5)	(15,051)		(3,161)		(11,890)		2,094		440		1,654
Total	$	5,553	$	1,166	$	4,387	$	72,684	$	15,264	$	57,420
Other comprehensive income/(loss)	$	18,993	$	3,989	$	15,004	$	(85,369)	$	(17,927)	$	(67,442)

(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)Represents the accumulated unrealized loss on the AgVantage Securities transferred from available-for-sale to held-to-maturity.

(4)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.

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

New Accounting StandardsRecently Adopted Accounting Guidance

Standard	Description	Date of Adoption	Effect on Consolidated Financial Statements
ASU 2020-04 and 2021-01, 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.	January 1, 2020	During the second quarter 2023, Farmer Mac adopted optional expedients including those relating to qualifying hedging relationships and contract modification relief, and as of June 30, 2023, has no further variable-rate exposure to LIBOR. To date, these elections did not have a material effect on Farmer Mac's financial position, results of operations, or cash flows. Farmer Mac does not expect to elect further expedients through the ending date of December 31, 2024.
ASU 2022-06, Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848	The amendments in this Update deferred the sunset date in Topic 848 from December 31, 2022 to December 31, 2024.	December 21, 2022	Farmer Mac does not expect to elect further expedients through the ending date of December 31, 2024.
ASU 2022-02, Financial Instruments-Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures	The Update addresses and amends areas identified by the Financial Accounting Standards Board as part of its post-implementation review of the accounting standard that introduced the current expected credit losses (“CECL”) model. The amendments eliminate the accounting guidance for troubled debt restructurings by creditors that have adopted the CECL model and enhance the disclosure requirements for loan refinancings and restructurings made with borrowers experiencing financial difficulty. In addition, the amendments require disclosure of current-period gross write offs for financing receivables and net investment in leases by year of origination in the vintage disclosures.	January 1, 2023	The adoption of this Update did not have a material effect on Farmer Mac's financial position, results of operations, or cash flows.
ASU 2022-01, Fair Value Hedging - Portfolio Layer Method	The Update introduces the portfolio layer method, which expands the current single-layer method to allow multiple hedged layers of a single closed portfolio under the method (previously named, last-of-layer method). Additionally, it expands the scope of the portfolio layer method to include non-prepayable assets, specifies eligible hedging instruments in a single-layer hedge, provides additional guidance on the accounting for and disclosure of hedge basis adjustments under the portfolio layer method, specifies how hedge basis adjustments should be considered when determining credit losses for the assets included in the closed portfolio, and provides that an entity may reclassify HTM debt securities identified within 30 days of the date of adoption to AFS if the entity applies portfolio layer method hedging to those debt securities.	January 1, 2023	Farmer Mac adopted this guidance as of January 1, 2023. Farmer Mac does not currently hedge interest rate risk for single closed portfolios of financial assets, so adoption of this guidance had no effect on Farmer Mac's financial condition, results of operations, cash flows, or disclosures given current strategies.

(d) Reclassifications

Certain reclassifications of prior period information were made to conform to the current period presentation. The reclassifications of prior period information were not material to the consolidated financial statements.

XML

Investment Securities

9 Months Ended

Sep. 30, 2023

Investments, Debt and Equity Securities [Abstract]

INVESTMENT SECURITIES

INVESTMENT SECURITIES

The following tables set forth information about Farmer Mac's available-for-sale and held-to-maturity investment securities as of September 30, 2023 and December 31, 2022:

Table 2.1

	As of September 30, 2023
	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	$	(27)	$	—	$	(640)	$	19,033
Floating rate Government/GSE guaranteed mortgage-backed securities	2,499,578		(1,170)		2,498,408		—		2,054		(34,917)		2,465,545
Fixed rate GSE guaranteed mortgage-backed securities	1,629,166		(45,118)		1,584,048		—		—		(197,670)		1,386,378
Floating rate U.S. Treasuries	50,000		(23)		49,977		—		34		—		50,011
Fixed rate U.S. Treasuries	978,585		(16,242)		962,343		—		—		(9,896)		952,447
Total available-for-sale	5,177,029		(62,553)		5,114,476		(27)		2,088		(243,123)		4,873,414
Held-to-maturity:
Floating rate Government/GSE guaranteed mortgage-backed securities(3)	45,032		—		45,032		—		930		—		45,962
Total held-to-maturity	$	45,032	$	—	$	45,032	$	—	$	930	$	—	$	45,962

(1)Amounts presented exclude $17.4 million of accrued interest receivable on investment securities as of September 30, 2023.

(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 6.5% as of September 30, 2023.

	As of December 31, 2022
	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	$	(33)	$	—	$	(640)	$	19,027
Floating rate Government/GSE guaranteed mortgage-backed securities	2,433,696		(200)		2,433,496		—		1,954		(42,910)		2,392,540
Fixed rate GSE guaranteed mortgage-backed securities	1,207,416		(30,321)		1,177,095		—		2,128		(130,837)		1,048,386
Fixed rate U.S. Treasuries	1,145,915		(6,780)		1,139,135		—		621		(20,145)		1,119,611
Total available-for-sale	4,806,727		(37,301)		4,769,426		(33)		4,703		(194,532)		4,579,564
Held-to-maturity:
Floating rate Government/GSE guaranteed mortgage-backed securities(3)	45,032		—		45,032		—		2,433		—		47,465
Total held-to-maturity	$	45,032	$	—	$	45,032	$	—	$	2,433	$	—	$	47,465

(1)Amounts presented exclude $10.6 million of accrued interest receivable on investment securities as of December 31, 2022.

(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 4.5% as of December 31, 2022.

Farmer Mac did not sell any securities from its available-for-sale investment portfolio during the three and nine months ended September 30, 2023 and 2022.

As of September 30, 2023 and December 31, 2022, unrealized losses on available-for-sale investment securities were as follows:

Table 2.2

	As of September 30, 2023
	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	$	—	$	—	$	19,033	$	(640)
Floating rate Government/GSE guaranteed mortgage-backed securities	583,799		(4,076)		1,431,925		(30,841)
Fixed rate Government/GSE guaranteed mortgage-backed securities	535,288		(29,649)		851,082		(168,021)
Fixed rate U.S. Treasuries	655,068		(4,552)		297,378		(5,344)
Total	$	1,774,155	$	(38,277)	$	2,599,418	$	(204,846)
Number of securities in loss position			85				170

	As of December 31, 2022
	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	$	—	$	—	$	19,027	$	(640)
Floating rate Government/GSE guaranteed mortgage-backed securities	1,884,146		(36,976)		193,964		(5,934)
Fixed rate Government/GSE guaranteed mortgage-backed securities	621,215		(56,434)		336,782		(74,403)
Fixed rate U.S. Treasuries	314,524		(2,842)		704,780		(17,303)
Total	$	2,819,885	$	(96,252)	$	1,254,553	$	(98,280)
Number of securities in loss position			174				51

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, 2023 and December 31, 2022, 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, 2023 and December 31, 2022, all of the investment securities in an unrealized loss position either were backed by the full faith and credit of the U.S. government, a U.S. government sponsored enterprise, 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, 2023 that is, on average, approximately 92.7% 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, changes in credit spread, and changes in levels of interest rates.

The amortized cost, fair value, and weighted-average yield of available-for-sale investment securities by remaining contractual maturity as of September 30, 2023 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, 2023
	Available-for-Sale Securities
	Amortized Cost		Fair Value		Weighted- Average Yield
	(dollars in thousands)
Due within one year	$	589,475	$	584,714	1.35%
Due after one year through five years	1,171,601		1,135,888		4.06%
Due after five years through ten years	2,534,914		2,358,496		4.39%
Due after ten years	818,486		794,316		5.61%
Total	$	5,114,476	$	4,873,414	4.16%

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, 2023 and December 31, 2022:

Table 3.1

	As of September 30, 2023
	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	$	4,158,857	$	(30,389)	$	4,128,468	$	(196)	$	4,525	$	(49,221)	$	4,083,576
Farmer Mac Guaranteed USDA Securities	29,109		33		29,142		—		—		(1,362)		27,780
Total Farmer Mac Guaranteed Securities	4,187,966		(30,356)		4,157,610		(196)		4,525		(50,583)		4,111,356
USDA Securities	2,299,407		22,948		2,322,355		—		194		(390,322)		1,932,227
Total held-to-maturity	$	6,487,373	$	(7,408)	$	6,479,965	$	(196)	$	4,719	$	(440,905)	$	6,043,583
Available-for-sale:
AgVantage	$	5,526,857	$	—	$	5,526,857	$	(374)	$	—	$	(477,775)	$	5,048,708
Farmer Mac Guaranteed Securities(3)	—		9,580		9,580		—		409		—		9,989
Total available-for-sale	$	5,526,857	$	9,580	$	5,536,437	$	(374)	$	409	$	(477,775)	$	5,058,697
Trading:
USDA Securities(4)	$	1,314	$	57	$	1,371	$	—	$	—	$	(69)	$	1,302

(1)Amounts presented exclude $53.3 million, $58.9 million, and $38,000 of accrued interest receivable on available-for-sale, held-to-maturity, and trading securities, respectively, as of September 30, 2023.

(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)Fair value includes $10.0 million of an interest-only security with a notional amount of $239.1 million.

(4)The trading USDA securities had a weighted average yield of 5.50% as of September 30, 2023.

	As of December 31, 2022
	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	$	1,000,689	$	(95)	$	1,000,594	$	(59)	$	353	$	(54,098)	$	946,790
Farmer Mac Guaranteed USDA Securities	20,586		33		20,619		—		2		(856)		19,765
Total Farmer Mac Guaranteed Securities	1,021,275		(62)		1,021,213		(59)		355		(54,954)		966,555
USDA Securities	2,384,946		24,888		2,409,834		—		668		(312,824)		2,097,678
Total held-to-maturity	$	3,406,221	$	24,826	$	3,431,047	$	(59)	$	1,023	$	(367,778)	$	3,064,233
Available-for-sale:
AgVantage	$	8,008,067	$	806	$	8,008,873	$	(546)	$	2,061	$	(411,009)	$	7,599,379
Farmer Mac Guaranteed Securities(3)	—		10,622		10,622		—		—		(2,775)		$	7,847
Total available-for-sale	$	8,008,067	$	11,428	$	8,019,495	$	(546)	$	2,061	$	(413,784)	$	7,607,226
Trading:
USDA Securities(4)	$	1,770	$	80	$	1,850	$	—	$	—	$	(83)	$	1,767

(1)Amounts presented exclude $51.5 million, $44.4 million, and $47,000 of accrued interest receivable on available-for-sale, held-to-maturity, and trading securities, respectively, as of December 31, 2022.

(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)Fair value includes $7.8 million of an interest-only security with a notional amount of $250.1 million.

(4)The trading USDA securities had a weighted average yield of 4.84% as of December 31, 2022.

On July 1, 2023, Farmer Mac transferred $2.7 billion of AgVantage Securities from available-for-sale to held-to-maturity to reflect Farmer Mac's positive intent and ability to hold these securities until maturity or payoff. Farmer Mac transferred these securities at fair value as of the date of the transfer, which included a cost basis adjustment of unrealized losses of $31.9 million. The accumulated unrealized losses were retained in accumulated other comprehensive income in the amount of $31.9 million. Farmer Mac accounts for held-to-maturity securities at amortized cost. Both the cost basis adjustment and accumulated unrealized depreciation will be amortized as an adjustment to the yield on the held-to-maturity AgVantage Securities over the remaining term of the transferred securities.

As of September 30, 2023 and December 31, 2022, 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, 2023
	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	$	2,022,393	$	(2,613)	$	812,575	$	(46,608)
Farmer Mac Guaranteed USDA Securities	19,559		(322)		8,251		(1,040)
USDA Securities	1,495		(22)		1,921,243		(390,300)
Total held-to-maturity	$	2,043,447	$	(2,957)	$	2,742,069	$	(437,948)
Available-for-sale:
AgVantage	$	993,705	$	(30,193)	$	4,055,377	$	(447,582)
Farmer Mac Guaranteed Securities	—		—		—		—
Total available-for-sale	$	993,705	$	(30,193)	$	4,055,377	$	(447,582)

	As of December 31, 2022
	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	$	548,634	$	(11,455)	$	382,358	$	(42,643)
Farmer Mac Guaranteed USDA Securities	19,790		(856)		—		—
USDA Securities	2,086,108		(312,824)		—		—
Total held-to-maturity	$	2,654,532	$	(325,135)	$	382,358	$	(42,643)
Available-for-sale:
AgVantage	$	4,642,096	$	(267,886)	$	1,548,551	$	(143,123)
Farmer Mac Guaranteed Securities	7,847		(2,775)		—		—
Total available-for-sale	$	4,649,943	$	(270,661)	$	1,548,551	$	(143,123)

The unrealized losses presented above are principally due to changes in interest rates from the date of acquisition to September 30, 2023 and December 31, 2022, as applicable.

The credit exposure related to Farmer Mac's USDA Securities in the Agricultural Finance line of business is covered by the full faith and credit guarantee of the United States of America.

The unrealized losses from AgVantage securities were on 76 and 95 available-for-sale securities as of September 30, 2023 and December 31, 2022, respectively. There were 59 and 37 held-to-maturity AgVantage securities with an unrealized loss as of September 30, 2023 and December 31, 2022, respectively. As of September 30, 2023 and December 31, 2022, 64 and 13 available-for-sale AgVantage securities, respectively, had been in a loss position for more than 12 months. As of September 30, 2023 and December 31, 2022, there were 26 and 4 held-to-maturity AgVantage securities, respectively, in a loss position for more than 12 months.

During the three and nine months ended September 30, 2023 and 2022 Farmer Mac had no sales of AgVantage Farmer Mac Guaranteed Securities, USDA Farmer Mac Guaranteed Securities or USDA Trading 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, 2023 are set forth below. The balances presented are based on their contractual maturities, although the actual maturities may differ due to prepayments of the underlying assets.

Table 3.3

	As of September 30, 2023
	Available-for-Sale Securities
	Amortized Cost(1)		Fair Value		Weighted- Average Yield
	(dollars in thousands)
Due within one year	$	693,100	$	682,379	3.25	%
Due after one year through five years	2,739,174		2,579,604		3.47	%
Due after five years through ten years	1,142,500		997,848		3.27	%
Due after ten years	961,663		798,866		3.55	%
Total	$	5,536,437	$	5,058,697	3.41	%

(1)Amounts presented exclude $53.3 million of accrued interest receivable.

	As of September 30, 2023
	Held-to-Maturity Securities
	Amortized Cost(1)		Fair Value		Weighted- Average Yield
	(dollars in thousands)
Due within one year	$	2,071,858	$	2,066,836	5.61	%
Due after one year through five years	1,321,681		1,269,796		4.22	%
Due after five years through ten years	453,755		409,148		4.30	%
Due after ten years	2,632,671		2,297,803		4.19	%
Total	$	6,479,965	$	6,043,583	4.68	%

(1)Amounts presented exclude $58.9 million of accrued interest receivable.

XML

Farmer Mac Guaranteed Securities and USDA Securities

9 Months Ended

Sep. 30, 2023

Investments, Debt and Equity Securities [Abstract]

FARMER MAC GUARANTEED SECURITIES AND USDA SECURITIES

INVESTMENT SECURITIES

The following tables set forth information about Farmer Mac's available-for-sale and held-to-maturity investment securities as of September 30, 2023 and December 31, 2022:

Table 2.1

	As of September 30, 2023
	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	$	(27)	$	—	$	(640)	$	19,033
Floating rate Government/GSE guaranteed mortgage-backed securities	2,499,578		(1,170)		2,498,408		—		2,054		(34,917)		2,465,545
Fixed rate GSE guaranteed mortgage-backed securities	1,629,166		(45,118)		1,584,048		—		—		(197,670)		1,386,378
Floating rate U.S. Treasuries	50,000		(23)		49,977		—		34		—		50,011
Fixed rate U.S. Treasuries	978,585		(16,242)		962,343		—		—		(9,896)		952,447
Total available-for-sale	5,177,029		(62,553)		5,114,476		(27)		2,088		(243,123)		4,873,414
Held-to-maturity:
Floating rate Government/GSE guaranteed mortgage-backed securities(3)	45,032		—		45,032		—		930		—		45,962
Total held-to-maturity	$	45,032	$	—	$	45,032	$	—	$	930	$	—	$	45,962

(1)Amounts presented exclude $17.4 million of accrued interest receivable on investment securities as of September 30, 2023.

(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 6.5% as of September 30, 2023.

	As of December 31, 2022
	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	$	(33)	$	—	$	(640)	$	19,027
Floating rate Government/GSE guaranteed mortgage-backed securities	2,433,696		(200)		2,433,496		—		1,954		(42,910)		2,392,540
Fixed rate GSE guaranteed mortgage-backed securities	1,207,416		(30,321)		1,177,095		—		2,128		(130,837)		1,048,386
Fixed rate U.S. Treasuries	1,145,915		(6,780)		1,139,135		—		621		(20,145)		1,119,611
Total available-for-sale	4,806,727		(37,301)		4,769,426		(33)		4,703		(194,532)		4,579,564
Held-to-maturity:
Floating rate Government/GSE guaranteed mortgage-backed securities(3)	45,032		—		45,032		—		2,433		—		47,465
Total held-to-maturity	$	45,032	$	—	$	45,032	$	—	$	2,433	$	—	$	47,465

(1)Amounts presented exclude $10.6 million of accrued interest receivable on investment securities as of December 31, 2022.

(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 4.5% as of December 31, 2022.

Farmer Mac did not sell any securities from its available-for-sale investment portfolio during the three and nine months ended September 30, 2023 and 2022.

As of September 30, 2023 and December 31, 2022, unrealized losses on available-for-sale investment securities were as follows:

Table 2.2

	As of September 30, 2023
	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	$	—	$	—	$	19,033	$	(640)
Floating rate Government/GSE guaranteed mortgage-backed securities	583,799		(4,076)		1,431,925		(30,841)
Fixed rate Government/GSE guaranteed mortgage-backed securities	535,288		(29,649)		851,082		(168,021)
Fixed rate U.S. Treasuries	655,068		(4,552)		297,378		(5,344)
Total	$	1,774,155	$	(38,277)	$	2,599,418	$	(204,846)
Number of securities in loss position			85				170

	As of December 31, 2022
	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	$	—	$	—	$	19,027	$	(640)
Floating rate Government/GSE guaranteed mortgage-backed securities	1,884,146		(36,976)		193,964		(5,934)
Fixed rate Government/GSE guaranteed mortgage-backed securities	621,215		(56,434)		336,782		(74,403)
Fixed rate U.S. Treasuries	314,524		(2,842)		704,780		(17,303)
Total	$	2,819,885	$	(96,252)	$	1,254,553	$	(98,280)
Number of securities in loss position			174				51

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, 2023 and December 31, 2022, 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, 2023 and December 31, 2022, all of the investment securities in an unrealized loss position either were backed by the full faith and credit of the U.S. government, a U.S. government sponsored enterprise, 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, 2023 that is, on average, approximately 92.7% 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, changes in credit spread, and changes in levels of interest rates.

The amortized cost, fair value, and weighted-average yield of available-for-sale investment securities by remaining contractual maturity as of September 30, 2023 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, 2023
	Available-for-Sale Securities
	Amortized Cost		Fair Value		Weighted- Average Yield
	(dollars in thousands)
Due within one year	$	589,475	$	584,714	1.35%
Due after one year through five years	1,171,601		1,135,888		4.06%
Due after five years through ten years	2,534,914		2,358,496		4.39%
Due after ten years	818,486		794,316		5.61%
Total	$	5,114,476	$	4,873,414	4.16%

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, 2023 and December 31, 2022:

Table 3.1

	As of September 30, 2023
	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	$	4,158,857	$	(30,389)	$	4,128,468	$	(196)	$	4,525	$	(49,221)	$	4,083,576
Farmer Mac Guaranteed USDA Securities	29,109		33		29,142		—		—		(1,362)		27,780
Total Farmer Mac Guaranteed Securities	4,187,966		(30,356)		4,157,610		(196)		4,525		(50,583)		4,111,356
USDA Securities	2,299,407		22,948		2,322,355		—		194		(390,322)		1,932,227
Total held-to-maturity	$	6,487,373	$	(7,408)	$	6,479,965	$	(196)	$	4,719	$	(440,905)	$	6,043,583
Available-for-sale:
AgVantage	$	5,526,857	$	—	$	5,526,857	$	(374)	$	—	$	(477,775)	$	5,048,708
Farmer Mac Guaranteed Securities(3)	—		9,580		9,580		—		409		—		9,989
Total available-for-sale	$	5,526,857	$	9,580	$	5,536,437	$	(374)	$	409	$	(477,775)	$	5,058,697
Trading:
USDA Securities(4)	$	1,314	$	57	$	1,371	$	—	$	—	$	(69)	$	1,302

(1)Amounts presented exclude $53.3 million, $58.9 million, and $38,000 of accrued interest receivable on available-for-sale, held-to-maturity, and trading securities, respectively, as of September 30, 2023.

(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)Fair value includes $10.0 million of an interest-only security with a notional amount of $239.1 million.

(4)The trading USDA securities had a weighted average yield of 5.50% as of September 30, 2023.

	As of December 31, 2022
	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	$	1,000,689	$	(95)	$	1,000,594	$	(59)	$	353	$	(54,098)	$	946,790
Farmer Mac Guaranteed USDA Securities	20,586		33		20,619		—		2		(856)		19,765
Total Farmer Mac Guaranteed Securities	1,021,275		(62)		1,021,213		(59)		355		(54,954)		966,555
USDA Securities	2,384,946		24,888		2,409,834		—		668		(312,824)		2,097,678
Total held-to-maturity	$	3,406,221	$	24,826	$	3,431,047	$	(59)	$	1,023	$	(367,778)	$	3,064,233
Available-for-sale:
AgVantage	$	8,008,067	$	806	$	8,008,873	$	(546)	$	2,061	$	(411,009)	$	7,599,379
Farmer Mac Guaranteed Securities(3)	—		10,622		10,622		—		—		(2,775)		$	7,847
Total available-for-sale	$	8,008,067	$	11,428	$	8,019,495	$	(546)	$	2,061	$	(413,784)	$	7,607,226
Trading:
USDA Securities(4)	$	1,770	$	80	$	1,850	$	—	$	—	$	(83)	$	1,767

(1)Amounts presented exclude $51.5 million, $44.4 million, and $47,000 of accrued interest receivable on available-for-sale, held-to-maturity, and trading securities, respectively, as of December 31, 2022.

(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)Fair value includes $7.8 million of an interest-only security with a notional amount of $250.1 million.

(4)The trading USDA securities had a weighted average yield of 4.84% as of December 31, 2022.

On July 1, 2023, Farmer Mac transferred $2.7 billion of AgVantage Securities from available-for-sale to held-to-maturity to reflect Farmer Mac's positive intent and ability to hold these securities until maturity or payoff. Farmer Mac transferred these securities at fair value as of the date of the transfer, which included a cost basis adjustment of unrealized losses of $31.9 million. The accumulated unrealized losses were retained in accumulated other comprehensive income in the amount of $31.9 million. Farmer Mac accounts for held-to-maturity securities at amortized cost. Both the cost basis adjustment and accumulated unrealized depreciation will be amortized as an adjustment to the yield on the held-to-maturity AgVantage Securities over the remaining term of the transferred securities.

As of September 30, 2023 and December 31, 2022, 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, 2023
	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	$	2,022,393	$	(2,613)	$	812,575	$	(46,608)
Farmer Mac Guaranteed USDA Securities	19,559		(322)		8,251		(1,040)
USDA Securities	1,495		(22)		1,921,243		(390,300)
Total held-to-maturity	$	2,043,447	$	(2,957)	$	2,742,069	$	(437,948)
Available-for-sale:
AgVantage	$	993,705	$	(30,193)	$	4,055,377	$	(447,582)
Farmer Mac Guaranteed Securities	—		—		—		—
Total available-for-sale	$	993,705	$	(30,193)	$	4,055,377	$	(447,582)

	As of December 31, 2022
	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	$	548,634	$	(11,455)	$	382,358	$	(42,643)
Farmer Mac Guaranteed USDA Securities	19,790		(856)		—		—
USDA Securities	2,086,108		(312,824)		—		—
Total held-to-maturity	$	2,654,532	$	(325,135)	$	382,358	$	(42,643)
Available-for-sale:
AgVantage	$	4,642,096	$	(267,886)	$	1,548,551	$	(143,123)
Farmer Mac Guaranteed Securities	7,847		(2,775)		—		—
Total available-for-sale	$	4,649,943	$	(270,661)	$	1,548,551	$	(143,123)

The unrealized losses presented above are principally due to changes in interest rates from the date of acquisition to September 30, 2023 and December 31, 2022, as applicable.

The credit exposure related to Farmer Mac's USDA Securities in the Agricultural Finance line of business is covered by the full faith and credit guarantee of the United States of America.

The unrealized losses from AgVantage securities were on 76 and 95 available-for-sale securities as of September 30, 2023 and December 31, 2022, respectively. There were 59 and 37 held-to-maturity AgVantage securities with an unrealized loss as of September 30, 2023 and December 31, 2022, respectively. As of September 30, 2023 and December 31, 2022, 64 and 13 available-for-sale AgVantage securities, respectively, had been in a loss position for more than 12 months. As of September 30, 2023 and December 31, 2022, there were 26 and 4 held-to-maturity AgVantage securities, respectively, in a loss position for more than 12 months.

During the three and nine months ended September 30, 2023 and 2022 Farmer Mac had no sales of AgVantage Farmer Mac Guaranteed Securities, USDA Farmer Mac Guaranteed Securities or USDA Trading 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, 2023 are set forth below. The balances presented are based on their contractual maturities, although the actual maturities may differ due to prepayments of the underlying assets.

Table 3.3

	As of September 30, 2023
	Available-for-Sale Securities
	Amortized Cost(1)		Fair Value		Weighted- Average Yield
	(dollars in thousands)
Due within one year	$	693,100	$	682,379	3.25	%
Due after one year through five years	2,739,174		2,579,604		3.47	%
Due after five years through ten years	1,142,500		997,848		3.27	%
Due after ten years	961,663		798,866		3.55	%
Total	$	5,536,437	$	5,058,697	3.41	%

(1)Amounts presented exclude $53.3 million of accrued interest receivable.

	As of September 30, 2023
	Held-to-Maturity Securities
	Amortized Cost(1)		Fair Value		Weighted- Average Yield
	(dollars in thousands)
Due within one year	$	2,071,858	$	2,066,836	5.61	%
Due after one year through five years	1,321,681		1,269,796		4.22	%
Due after five years through ten years	453,755		409,148		4.30	%
Due after ten years	2,632,671		2,297,803		4.19	%
Total	$	6,479,965	$	6,043,583	4.68	%

(1)Amounts presented exclude $58.9 million of accrued interest receivable.

XML

Financial Derivatives

9 Months Ended

Sep. 30, 2023

Derivative Instruments and Hedging Activities Disclosure [Abstract]

FINANCIAL DERIVATIVES

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. Certain financial derivatives are designated as fair value hedges of

fixed rate assets, classified as available-for-sale, to protect against fair value changes in the assets related

to changes in a benchmark interest rate (e.g., SOFR). Certain other financial derivatives are

designated as cash flow hedges to mitigate the volatility of future interest rate payments on floating rate

debt. Certain financial derivatives are not designated in hedge accounting relationships.

Farmer Mac manages the interest rate risk related to loans it has committed to acquire, but has not yet

permanently funded, primarily through the use of futures contracts involving U.S. Treasury securities. Farmer Mac aims to achieve a duration-matched hedge ratio between the hedged item and the hedge instrument. Gains or losses generated by these hedge transactions are expected to offset changes in funding costs. All financial derivatives are recorded on the balance sheet at fair value as a freestanding

asset or liability.

The following tables summarize information related to Farmer Mac's financial derivatives on a gross basis without giving consideration to master netting arrangements. The table below includes accrued interest on cleared swaps, but excludes $14.3 million and $6.1 million of accrued interest receivable and $6.3 million and $3.6 million of accrued interest payable on uncleared swaps as of September 30, 2023 and December 31, 2022, respectively. The aforementioned accrued interest on uncleared swaps is included within Accrued Interest Receivable and Accrued Interest Payable on the consolidated balance sheets.

Table 4.1

	As of September 30, 2023
			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:
Receive fixed non-callable	$	8,942,935	$	2,996	$	(11)	5.46%	2.74%		1.67
Pay fixed non-callable	8,830,943		81		(11,054)		2.39%	5.33%		9.89
Receive fixed callable	4,181,077		—		(179,299)		5.26%	3.06%		2.37
Cash flow hedges:
Interest rate swaps:
Pay fixed non-callable	563,000		27,510		(372)		1.94%	5.74%		4.51
No hedge designation:
Interest rate swaps:
Pay fixed non-callable	183,882		1,240		(166)		2.92%	5.44%		4.01
Receive fixed non-callable	851,146		69		(3)		5.34%	4.51%		0.70
Basis swaps	895,384		58		(625)		5.43%	5.45%		3.89
Treasury futures	11,900		81		(12)				108.64
Netting adjustments(1)			(3,180)		3,180
Total financial derivatives	$	24,460,267	$	28,855	$	(188,362)

(1)Amounts represent the application of the netting requirements that allow Farmer Mac to settle positive and negative positions, including accrued interest, held or placed with the same clearing agent.

	As of December 31, 2022
			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:
Receive fixed non-callable	$	10,033,750	$	19	$	(4,686)	4.31%	2.03%		1.64
Pay fixed non-callable	8,149,871		13,689		(366)		2.23%	4.33%		10.76
Receive fixed callable	2,764,577		461		(174,757)		4.21%	1.98%		3.18
Cash flow hedges:
Interest rate swaps:
Pay fixed non-callable	588,000		27,275		—		1.93%	4.72%		5.05
No hedge designation:
Interest rate swaps:
Pay fixed non-callable	187,479		1,065		(1)		3.05%	4.09%		4.52
Receive fixed non-callable	287,750		—		(130)		4.31%	1.16%		1.76
Basis swaps	1,860,384		112		(456)		4.40%	4.42%		2.46
Treasury futures	6,800		—		(142)				114.38
Netting adjustments(1)			(5,212)		5,212
Total financial derivatives	$	23,878,611	$	37,409	$	(175,326)

(1)Amounts represent the application of the netting requirements that allow Farmer Mac to settle positive and negative positions, including accrued interest, held or placed with the same clearing agent.

As of September 30, 2023, Farmer Mac expects to reclassify $16.6 million after-tax from accumulated other comprehensive income to earnings over the next twelve months related to cash flow hedges. 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, 2023. During the three and nine months ended September 30, 2023 and 2022, 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 tables summarize the net income/(expense) recognized in the consolidated statements of operations related to derivatives for the three and nine months ended September 30, 2023 and 2022:

Table 4.2

	For the Three Months Ended September 30, 2023
	Net Income/(Expense) Recognized in Consolidated Statement of Operations on Derivatives
	Net Interest Income								Non-Interest Income		Total
	Interest Income Investments and Cash Equivalents		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	$	79,947	$	161,351	$	140,513	$	(294,168)	$	2,671	$	90,314
Income/(expense) related to interest settlements on fair value hedging relationships:
Recognized on derivatives	9,950		40,114		17,692		(92,663)		—		(24,907)
Recognized on hedged items	9,006		46,303		16,089		(91,525)		—		(20,127)
Premium/discount amortization recognized on hedged items	623		—		—		(732)		—		(109)
Income/(expense) related to interest settlements on fair value hedging relationships	$	19,579	$	86,417	$	33,781	$	(184,920)	$	—	$	(45,143)
Gains/(losses) on fair value hedging relationships:
Recognized on derivatives	$	42,051	$	110,196	$	107,265	$	9,475	$	—	$	268,987
Recognized on hedged items	(41,944)		(107,965)		(105,403)		(10,465)		—		(265,777)
Gains/(losses) on fair value hedging relationships	$	107	$	2,231	$	1,862	$	(990)	$	—	$	3,210
Expense related to interest settlements on cash flow hedging relationships:
Interest settlements reclassified from AOCI into net income on derivatives	$	—	$	—	$	—	$	5,569	$	—	$	5,569
Recognized on hedged items	—		—		—		(8,287)		—		(8,287)
Discount amortization recognized on hedged items	—		—		—		(14)		—		(14)
Expense recognized on cash flow hedges	$	—	$	—	$	—	$	(2,732)	$	—	$	(2,732)
Gains on financial derivatives not designated in hedging relationships:
Gains on interest rate swaps	$	—	$	—	$	—	$	—	$	2,772	$	2,772
Interest expense on interest rate swaps	—		—		—		—		(805)		(805)
Treasury futures	—		—		—		—		704		704
Gains on financial derivatives not designated in hedge relationships	$	—	$	—	$	—	$	—	$	2,671	$	2,671

	For the Three Months Ended September 30, 2022
	Net Income/(Expense) Recognized in Consolidated Statement of Operations on Derivatives
	Net Interest Income								Non-Interest Income		Total
	Interest Income Investments and Cash Equivalents		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:	$	21,581	$	74,695	$	97,514	$	(125,937)	$	772	$	68,625
Income/(expense) related to interest settlements on fair value hedging relationships:
Recognized on derivatives	957		(350)		1,837		(22,679)		—		(20,235)
Recognized on hedged items	4,617		35,763		14,857		(35,263)		—		19,974
Discount amortization recognized on hedged items	(59)		—		—		(549)		—		(608)
Income/(expense) related to interest settlements on fair value hedging relationships	$	5,515	$	35,413	$	16,694	$	(58,491)	$	—	$	(869)
(Losses)/gains on fair value hedging relationships:
Recognized on derivatives	$	49,373	$	201,864	$	105,683	$	(197,884)	$	—	$	159,036
Recognized on hedged items	(52,308)		(204,765)		(100,490)		197,902		—		(159,661)
(Losses)/gains on fair value hedging relationships	$	(2,935)	$	(2,901)	$	5,193	$	18	$	—	$	(625)
Expense related to interest settlements on cash flow hedging relationships:
Interest settlements reclassified from AOCI into net income on derivatives	$	—	$	—	$	—	$	1,072	$	—	$	1,072
Recognized on hedged items	—		—		—		(4,046)		—		(4,046)
Discount amortization recognized on hedged items	—		—		—		(15)		—		(15)
Expense recognized on cash flow hedges	$	—	$	—	$	—	$	(2,989)	$	—	$	(2,989)
Gains on financial derivatives not designated in hedge relationships:
Gains on interest rate swaps	$	—	$	—	$	—	$	—	$	5,054	$	5,054
Interest expense on interest rate swaps	—		—		—		—		(2,613)		(2,613)
Treasury futures	—		—		—		—		(1,669)		(1,669)
Gains on financial derivatives not designated in hedge relationships	$	—	$	—	$	—	$	—	$	772	$	772

	For the Nine Months Ended September 30, 2023
	Net Income/(Expense) Recognized in Consolidated Statement of Operations on Derivatives
	Net Interest Income								Non-Interest Income		Total
	Interest Income Investments and Cash Equivalents		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	$	209,429	$	442,649	$	388,837	$	(795,537)	$	4,763	$	250,141
Income/(expense) related to interest settlements on fair value hedging relationships:
Recognized on derivatives	24,952		104,023		46,625		(258,358)		—		(82,758)
Recognized on hedged items	23,865		133,995		47,144		(243,053)		—		(38,049)
Premium/discount amortization recognized on hedged items	1,399		—		—		(2,137)		—		(738)
Income/(expense) related to interest settlements on fair value hedging relationships	$	50,216	$	238,018	$	93,769	$	(503,548)	$	—	$	(121,545)
(Losses)/gains on fair value hedging relationships:
Recognized on derivatives	$	45,722	$	117,267	$	97,346	$	50,916	$	—	$	311,251
Recognized on hedged items	(46,485)		(116,591)		(97,827)		(52,144)		—		(313,047)
(Losses)/gains on fair value hedging relationships	$	(763)	$	676	$	(481)	$	(1,228)	$	—	$	(1,796)
Expense related to interest settlements on cash flow hedging relationships:
Interest settlements reclassified from AOCI into net income on derivatives	$	—	$	—	$	—	$	15,051	$	—	$	15,051
Recognized on hedged items	—		—		—		(23,325)		—		(23,325)
Discount amortization recognized on hedged items	—		—		—		(41)		—		(41)
Expense recognized on cash flow hedges	$	—	$	—	$	—	$	(8,315)	$	—	$	(8,315)
Gains on financial derivatives not designated in hedging relationships:
Gains on interest rate swaps	$	—	$	—	$	—	$	—	$	5,263	$	5,263
Interest expense on interest rate swaps	—		—		—		—		(3,999)		(3,999)
Treasury futures	—		—		—		—		3,499		3,499
Gains on financial derivatives not designated in hedge relationships	$	—	$	—	$	—	$	—	$	4,763	$	4,763

	For the Nine Months Ended September 30, 2022
	Net Income/(Expense) Recognized in Consolidated Statement of Operations on Derivatives
	Net Interest Income								Non-Interest Income		Total
	Interest Income Investments and Cash Equivalents		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:	$	38,497	$	169,231	$	241,393	$	(251,816)	$	21,551	$	218,856
Income/(expense) related to interest settlements on fair value hedging relationships:
Recognized on derivatives	(1,536)		(37,687)		(9,568)		(3,831)		—		(52,622)
Recognized on hedged items	10,433		102,123		41,146		(76,862)		—		76,840
Discount amortization recognized on hedged items	(816)		—		—		(1,478)		—		(2,294)
Income/(expense) related to interest settlements on fair value hedging relationships	$	8,081	$	64,436	$	31,578	$	(82,171)	$	—	$	21,924
(Losses)/gains on fair value hedging relationships:
Recognized on derivatives	$	106,935	$	563,897	$	347,034	$	(523,432)	$	—	$	494,434
Recognized on hedged items	(108,002)		(564,679)		(337,443)		521,643		—		(488,481)
(Losses)/gains on fair value hedging relationships	$	(1,067)	$	(782)	$	9,591	$	(1,789)	$	—	$	5,953
Expense related to interest settlements on cash flow hedging relationships:
Interest settlements reclassified from AOCI into net income on derivatives	$	—	$	—	$	—	$	(2,094)	$	—	$	(2,094)
Recognized on hedged items	—		—		—		(6,654)		—		(6,654)
Discount amortization recognized on hedged items	—		—		—		(43)		—		(43)
Expense recognized on cash flow hedges	$	—	$	—	$	—	$	(8,791)	$	—	$	(8,791)
Gains on financial derivatives not designated in hedge relationships:
Gains on interest rate swaps	$	—	$	—	$	—	$	—	$	10,954	$	10,954
Interest expense on interest rate swaps	—		—		—		—		(5,496)		(5,496)
Treasury futures	—		—		—		—		16,093		16,093
Gains on financial derivatives not designated in hedge relationships	$	—	$	—	$	—	$	—	$	21,551	$	21,551

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, 2023 and December 31, 2022:

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, 2023		December 31, 2022		September 30, 2023		December 31, 2022
	(in thousands)
Investment securities, Available-for-Sale, at fair value	$	1,138,569	$	876,063	$	(153,592)	$	(107,107)
Farmer Mac Guaranteed Securities, Available-for-Sale, at fair value	5,025,413		4,814,784		(463,464)		(346,873)
Loans held for investment, at amortized cost	1,570,732		1,623,301		(425,105)		(327,278)
Notes Payable(1)	(12,614,569)		(12,151,382)		478,942		531,086

(1)Carrying amount represents amortized cost.

The following tables present the fair value of financial assets and liabilities, based on the terms of Farmer Mac's master netting arrangements as of September 30, 2023 and December 31, 2022:

Table 4.4

	September 30, 2023
							Gross Amounts Not Offset in the Consolidated Balance Sheet
	Gross Amount Recognized		Gross Amounts offset in the Consolidated Balance Sheet		Net Amount Presented in the Consolidated Balance Sheet(1)		Netting Adjustments		Financial instruments pledged		Cash Collateral(2)		Net Amount
	(in thousands)
Assets:
Uncleared derivatives	$	27,583	$	—	$	27,583	$	(27,501)	$	—	$	—	$	82
Cleared derivatives	3,180		(3,180)		—		—		—		—		—
Total	$	30,763	$	(3,180)	$	27,583	$	(27,501)	$	—	$	—	$	82
Liabilities:
Uncleared derivatives	$	(150,625)	$	—	$	(150,625)	$	27,501	$	—	$	120,556	$	(2,568)
Cleared derivatives	(11,622)		3,180		(8,442)		—		204,407		—		195,965
Total	$	(162,247)	$	3,180	$	(159,067)	$	27,501	$	204,407	$	120,556	$	193,397

(1)Amounts presented may not agree to the consolidated balance sheet related to counterparties not subject to master netting agreements.

(2)Cash collateral excludes $24.1 million of collateral posted related to counterparties not subject to master netting agreements.

	December 31, 2022
							Gross Amounts Not Offset in the Consolidated Balance Sheet
	Gross Amount Recognized		Gross Amounts offset in the Consolidated Balance Sheet		Net Amount Presented in the Consolidated Balance Sheet(1)		Netting Adjustments		Financial instruments pledged		Cash Collateral(2)		Net Amount
	(in thousands)
Assets:
Uncleared derivatives	$	27,132	$	—	$	27,132	$	(27,132)	$	—	$	—	$	—
Cleared derivatives	14,450		(5,212)		9,238		—		203,993		—		213,231
Total	$	41,582	$	(5,212)	$	36,370	$	(27,132)	$	203,993	$	—	$	213,231
Liabilities:
Uncleared derivatives	$	(149,864)	$	—	$	(149,864)	$	27,132	$	—	$	121,065	$	(1,667)
Cleared derivatives	(5,212)		5,212		—		—		—		—		—
Total	$	(155,076)	$	5,212	$	(149,864)	$	27,132	$	—	$	121,065	$	(1,667)

(1)Amounts presented may not agree to the consolidated balance sheet related to counterparties not subject to master netting agreements.

(2)Cash collateral excludes $23.7 million of collateral posted related to counterparties not subject to master netting agreements.

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, 2023 or December 31, 2022, 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, 2023 and December 31, 2022, 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 $24.5 billion notional amount of interest rate swaps outstanding as of September 30, 2023, $19.5 billion were cleared through the swap clearinghouse, the Chicago Mercantile Exchange ("CME"). Of Farmer Mac's $23.9 billion notional amount of interest rate swaps outstanding as of December 31, 2022, $19.5 billion were cleared through the CME. During 2023 and throughout 2022, Farmer Mac continued the use of non-cleared basis swaps to prepare for the transition away from the use of LIBOR as a reference rate, which was completed as of the end of the second quarter of 2023.

XML

Loans

9 Months Ended

Sep. 30, 2023

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. As of both September 30, 2023 and December 31, 2022, Farmer Mac had no loans held for sale.

Under the Agricultural Finance line of business, Farmer Mac has two segments – Farm & Ranch and Corporate AgFinance. The segments are characterized by similarities in risk attributes and the manner in which Farmer Mac monitors and assesses credit risk.

The following table includes loans held for investment and displays the composition of the loan balances as of September 30, 2023 and December 31, 2022:

Table 5.1

	As of September 30, 2023						As of December 31, 2022
	Unsecuritized		In Consolidated Trusts		Total		Unsecuritized		In Consolidated Trusts		Total
	(in thousands)
Agricultural Finance loans
Farm & Ranch	$	4,987,818	$	1,422,854	$	6,410,672	$	5,150,750	$	1,211,576	$	6,362,326
Corporate AgFinance	1,223,777		—		1,223,777		1,166,253		—		1,166,253
Total Agricultural Finance loans	6,211,595		1,422,854		7,634,449		6,317,003		1,211,576		7,528,579
Rural Infrastructure Finance loans	3,342,713		—		3,342,713		3,021,266		—		3,021,266
Total unpaid principal balance(1)	9,554,308		1,422,854		10,977,162		9,338,269		1,211,576		10,549,845
Unamortized premiums, discounts, fair value hedge basis adjustment, and other cost basis adjustments	(423,375)		—		(423,375)		(329,290)		—		(329,290)
Total loans	9,130,933		1,422,854		10,553,787		9,008,979		1,211,576		10,220,555
Allowance for losses	(16,162)		(452)		(16,614)		(14,629)		(460)		(15,089)
Total loans, net of allowance	$	9,114,771	$	1,422,402	$	10,537,173	$	8,994,350	$	1,211,116	$	10,205,466

(1)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, 2023 and December 31, 2022:

Table 5.2

	September 30, 2023		December 31, 2022
	Allowance for Losses		Allowance for Losses
	(in thousands)
Loans:
Agricultural Finance loans
Farm & Ranch	$	3,910	$	4,044
Corporate AgFinance	3,678		2,731
Total Agricultural Finance Loans	7,588		6,775
Rural Infrastructure Finance loans	9,026		8,314
Total	$	16,614	$	15,089

The following is a summary of the changes in the allowance for losses for the three and nine months ended September 30, 2023 and 2022:

Table 5.3

	September 30, 2023								September 30, 2022
	Agricultural Finance loans						Rural Infrastructure Finance loans(3)		Agricultural Finance loans						Rural Infrastructure Finance loans(3)
	Farm & Ranch(1)		Corporate AgFinance(2)		Total				Farm & Ranch(1)		Corporate AgFinance(2)		Total
	(in thousands)
For the Three Months Ended
Beginning Balance	$	3,935	$	7,367	$	11,302	$	5,446	$	2,265	$	1,750	$	4,015	$	8,388
(Release of)/provision for losses	(25)		(3,689)		(3,714)		3,580		(153)		334		181		418
Charge-offs	—		—		—		—		—		—		—		—
Ending Balance	$	3,910	$	3,678	$	7,588	$	9,026	$	2,112	$	2,084	$	4,196	$	8,806
For the Nine Months Ended
Beginning Balance	$	4,044	$	2,731	$	6,775	$	8,314	$	2,882	$	560	$	3,442	$	10,599
(Release of)/provision for losses	(134)		947		813		712		(686)		1,524		838		(1,793)
Charge-offs	—		—		—		—		(84)		—		(84)		—
Ending Balance	$	3,910	$	3,678	$	7,588	$	9,026	$	2,112	$	2,084	$	4,196	$	8,806

(1)As of September 30, 2023 and 2022, allowance for losses for Agricultural Finance Farm & Ranch loans includes $1.1 million and no allowance for collateral dependent assets secured by agricultural real estate, respectively.

(2)As of September 30, 2023 and 2022, allowance for losses for Agricultural Finance Corporate AgFinance loans includes $0.0 million and $1.7 million allowance for collateral dependent assets secured by agricultural real estate, respectively.

(3)As of both September 30, 2023 and 2022, allowance for losses for Rural Infrastructure Finance loans includes no allowance for collateral dependent assets.

The $3.6 million net provision to the allowance for the Rural Infrastructure Finance portfolio during the quarter ended September 30, 2023 was primarily attributable to a single telecommunications loan that was downgraded to substandard during the quarter. The $3.7 million net release from the allowance for the Agricultural Finance mortgage loan portfolio during the quarter ended September 30, 2023 was primarily attributable to the full payoff of a single collateral dependent storage and processing loan.

The $0.7 million net provision to the allowance for the Rural Infrastructure Finance portfolio during the nine months ended September 30, 2023 was primarily attributable to a single telecommunications loan that was downgraded to substandard during the most recent quarter. The $0.8 million net provision to the allowance for the Agricultural Finance mortgage loan portfolio during the nine months ended September 30, 2023 was primarily attributable to increased loan volume and certain risk rating downgrades.

The net provision to the allowance for Rural Infrastructure Finance loan losses of $0.4 million recorded

during third quarter 2022 was primarily attributable to net new loan volume. The $0.2 million net

provision to the allowance for the Agricultural Finance mortgage loan portfolio during third quarter 2022

was primarily attributable to the deterioration of a single agricultural storage and processing loan.

The $1.8 million net release from the allowance for the Rural Infrastructure Finance portfolio for the nine

months ended September 30, 2022 was primarily attributable to improvements in forecasts of future

economic conditions, and a first quarter risk rating upgrade on a single loan. The risk rating upgrade on

that loan reflected that borrower's successful securitization of its large payable that arose during the arctic

freeze that struck Texas in February 2021. The $0.8 million net provision to the allowance for the

Agricultural Finance mortgage loan portfolio for the nine months ended September 30, 2022 was

primarily attributable to a risk rating downgrade on a single agricultural storage and processing 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, 2023 and December 31, 2022:

Table 5.4

	As of September 30, 2023
	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 loans
Farm & Ranch	$	6,319,094	$	15,652	$	5,321	$	6,739	$	27,712	$	63,866	$	6,410,672
Corporate AgFinance	1,223,777		—		—		—		—		—		1,223,777
Total Agricultural Finance loans	7,542,871		15,652		5,321		6,739		27,712		63,866		7,634,449
Rural Infrastructure Finance loans	3,342,713		—		—		—		—		—		3,342,713
Total	$	10,885,584	$	15,652	$	5,321	$	6,739	$	27,712	$	63,866	$	10,977,162

(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 $23.8 million of nonaccrual loans for which there was no associated allowance. During the three and nine months ended September 30, 2023, Farmer Mac received $0.4 million and $1.9 million in interest on nonaccrual loans, respectively.

	As of December 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 loans
Farm & Ranch	$	6,287,326	$	10,066	$	392	$	1,140	$	11,598	$	63,402	$	6,362,326
Corporate AgFinance	1,150,690		—		—		—		—		15,563		1,166,253
Total Agricultural Finance loans	7,438,016		10,066		392		1,140		11,598		78,965		7,528,579
Rural Infrastructure Finance loans	3,021,266		—		—		—		—		—		3,021,266
Total	$	10,459,282	$	10,066	$	392	$	1,140	$	11,598	$	78,965	$	10,549,845

(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 $22.0 million of nonaccrual loans for which there was no associated allowance. During the year ended December 31, 2022, Farmer Mac received $5.6 million in interest on nonaccrual loans.

Credit Quality Indicators

The following tables present credit quality indicators related to Agricultural Finance mortgage loans and Rural Infrastructure Finance loans held as of September 30, 2023 and December 31, 2022, by year of origination:

Table 5.5

	As of September 30, 2023
	Year of Origination:
	2023		2022		2021		2020		2019		Prior		Revolving Loans - Amortized Cost Basis		Total
	(in thousands)
Agricultural Finance - Farm & Ranch loans(1):
Internally Assigned Risk Rating:
Acceptable	$	346,745	$	1,143,457	$	1,633,550	$	1,129,203	$	317,213	$	1,077,958	$	379,009	$	6,027,135
Special mention(2)	49,039		48,891		61,030		12,530		19,164		29,464		13,430		233,548
Substandard(3)	520		20,900		7,514		21,626		23,690		64,942		10,797		149,989
Total	$	396,304	$	1,213,248	$	1,702,094	$	1,163,359	$	360,067	$	1,172,364	$	403,236	$	6,410,672
For the Three Months Ended September 30, 2023:
Current period charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
For the Nine Months Ended September 30, 2023:
Current period 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, 2023
	Year of Origination:
	2023		2022		2021		2020		2019		Prior		Revolving Loans - Amortized Cost Basis		Total
	(in thousands)
Agricultural Finance - Corporate AgFinance(1):
Internally Assigned Risk Rating:
Acceptable	$	180,030	$	98,524	$	262,572	$	123,685	$	99,696	$	113,758	$	240,977	$	1,119,242
Special mention(2)	—		14,625		15,632		50,856		20,347		1,021		2,054		104,535
Substandard(3)	—		—		—		—		—		—		—		—
Total	$	180,030	$	113,149	$	278,204	$	174,541	$	120,043	$	114,779	$	243,031	$	1,223,777
For the Three Months Ended September 30, 2023:
Current period charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
For the Nine Months Ended September 30, 2023:
Current period 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, 2023
	Year of Origination:
	2023		2022		2021		2020		2019		Prior		Revolving Loans - Amortized Cost Basis		Total
	(in thousands)
Rural Infrastructure Finance loans(1):
Internally Assigned Risk Rating:
Acceptable	$	450,241	$	694,635	$	189,385	$	598,689	$	711,794	$	610,062	$	58,413	$	3,313,219
Special mention(2)	—		—		—		—		—		—		—		—
Substandard(3)	—		29,494		—		—		—		—		—		29,494
Total	$	450,241	$	724,129	$	189,385	$	598,689	$	711,794	$	610,062	$	58,413	$	3,342,713
For the Three Months Ended September 30, 2023:
Current period charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
For the Nine Months Ended September 30, 2023:
Current period 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, 2022
	Year of Origination:
	2022		2021		2020		2019		2018		Prior		Revolving Loans - Amortized Cost Basis		Total
	(in thousands)
Agricultural Finance - Farm & Ranch loans(1):
Internally Assigned Risk Rating:
Acceptable	$	1,157,829	$	1,704,547	$	1,187,474	$	360,704	$	242,491	$	947,535	$	385,503	$	5,986,083
Special mention(2)	91,099		68,260		25,629		11,254		5,325		17,797		2,452		221,816
Substandard(3)	3,094		8,814		22,976		23,937		17,845		67,654		10,107		154,427
Total	$	1,252,022	$	1,781,621	$	1,236,079	$	395,895	$	265,661	$	1,032,986	$	398,062	$	6,362,326
For the Three Months Ended September 30, 2022:
Current period charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
For the Nine Months Ended September 30, 2022:
Current period 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 December 31, 2022
	Year of Origination:
	2022		2021		2020		2019		2018		Prior		Revolving Loans - Amortized Cost Basis		Total
	(in thousands)
Agricultural Finance - Corporate AgFinance loans(1):
Internally Assigned Risk Rating:
Acceptable	$	145,263	$	299,729	$	221,560	$	108,230	$	76,454	$	44,827	$	232,107	$	1,128,170
Special mention(2)	—		—		—		20,698		—		—		2,145		22,843
Substandard(3)	—		—		4,598		—		—		—		10,642		15,240
Total	$	145,263	$	299,729	$	226,158	$	128,928	$	76,454	$	44,827	$	244,894	$	1,166,253
For the Three Months Ended September 30, 2022:
Current period charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
For the Nine Months Ended September 30, 2022:
Current period 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, 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	$	741,021	$	220,420	$	629,223	$	739,270	$	7,932	$	649,830	$	33,570	$	3,021,266
Special mention(2)	—		—		—		—		—		—		—		—
Substandard(3)	—		—		—		—		—		—		—		—
Total	$	741,021	$	220,420	$	629,223	$	739,270	$	7,932	$	649,830	$	33,570	$	3,021,266
For the Three Months Ended September 30, 2022:
Current period charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
For the Nine Months Ended September 30, 2022:
Current period 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.

XML

Guarantees and Commitments

9 Months Ended

Sep. 30, 2023

Commitments and Contingencies Disclosure [Abstract]

GUARANTEES AND COMMITMENTS

GUARANTEES AND COMMITMENTS

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, 2023 and December 31, 2022, 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, 2023		As of December 31, 2022
	(in thousands)
Agricultural Finance
Farmer Mac Guaranteed Securities	$	455,681	$	500,953
Rural Infrastructure Finance
Farmer Mac Guaranteed Securities	1,098		1,169
Total off-balance sheet Farmer Mac Guaranteed Securities	$	456,779	$	502,122

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, 2023		September 30, 2022
	(in thousands)
Proceeds from new securitizations	$	222,188	$	305,410
Guarantee fees received	1,280		1,464

    

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, 2023		As of December 31, 2022
	(dollars in thousands)
Guarantee and commitment obligation	$	6,053	$	6,461
Weighted average remaining maturity:
Farmer Mac Guaranteed Securities	22.1 years		21.4 years
AgVantage Securities	1.2 years		2.0 years

Long-Term Standby Purchase Commitments

Farmer Mac has recorded a liability for its obligation to stand ready under the commitment 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, 2023		As of December 31, 2022
	(dollars in thousands)
Guarantee and commitment obligation(1)	$	41,554	$	40,121
Maximum principal amount	3,613,934		3,423,155
Weighted-average remaining maturity	14.7 years		15.3 years

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

Reserve for Losses - LTSPCs and Farmer Mac Guaranteed Securities

The following table is a summary, by asset type, of the reserve for losses as of September 30, 2023 and December 31, 2022:

Table 6.5

	September 30, 2023		December 31, 2022
	Reserve for Losses		Reserve for Losses
	(in thousands)
Agricultural Finance	$	1,412	$	819
Rural Infrastructure Finance	248		614
Total	$	1,660	$	1,433

The following is a summary of the changes in the reserve for losses for the three and nine month periods ended September 30, 2023 and 2022:

Table 6.6

	For the Three Months Ended				For the Nine Months Ended
	September 30, 2023		September 30, 2022		September 30, 2023		September 30, 2022
	Reserve for Losses		Reserve for Losses		Reserve for Losses		Reserve for Losses
	(in thousands)				(in thousands)
Agricultural Finance
Beginning Balance	$	1,471	$	882	$	819	$	1,068
(Release of)/provision for losses	(59)		(139)		593		(325)
Ending Balance	$	1,412	$	743	$	1,412	$	743
Rural Infrastructure Finance
Beginning Balance	$	234	$	795	$	614	$	882
Provision for/(release of) losses	14		(28)		(366)		(115)
Ending Balance	$	248	$	767	$	248	$	767

The provision for the reserve for losses in the Agricultural Finance LTSPC portfolio recorded during the nine months ended September 30, 2023 was primarily due to an updated estimate of expected losses based on additional available loss-given-default industry data. The release from the reserve for losses in the Rural Infrastructure Finance LTSPC portfolio recorded during the nine months ended September 30, 2023 was primarily due to an updated estimate of expected losses based on additional available loss-given-default industry data.

The allowance for both the Agricultural Finance and Rural Infrastructure Finance LTSPC and Farmer Mac Guaranteed portfolios recorded during the three and nine months ended September 30, 2022 remained relatively constant.

The following table presents the unpaid principal balances by delinquency status of Agricultural Finance and Rural Infrastructure loans underlying LTSPCs and Farmer Mac Guaranteed Securities as of September 30, 2023 and December 31, 2022:

Table 6.7

	As of September 30, 2023
	Current		30-59 Days		60-89 Days		90 Days and Greater(1)		Total Past Due		Total Loans
	(in thousands)
Agricultural Finance:	$	3,368,620	$	5,196	$	3,573	$	2,840	$	11,609	$	3,380,229
Rural Infrastructure Finance:	487,517		—		—		—		—		487,517
Total	$	3,856,137	$	5,196	$	3,573	$	2,840	$	11,609	$	3,867,746

(1)Includes loans underlying off-balance sheet Farmer Mac 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, 2022
	Current		30-59 Days		60-89 Days		90 Days and Greater(1)		Total Past Due		Total Loans
	(in thousands)
Agricultural Finance:	$	3,174,939	$	11,614	$	622	$	3,817	$	16,053	$	3,190,992
Rural Infrastructure Finance:	523,192		—		—		—		—		523,192
Total	$	3,698,131	$	11,614	$	622	$	3,817	$	16,053	$	3,714,184

(1)Includes loans underlying off-balance sheet Farmer Mac 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.

Credit Quality Indicators

The following tables present credit quality indicators related to Agricultural Finance and Rural Infrastructure loans underlying LTSPCs and Farmer Mac Guaranteed Securities as of September 30, 2023 and December 31, 2022, by year of origination:

Table 6.8

	As of September 30, 2023
	Year of Origination:
	2023		2022		2021		2020		2019		Prior		Revolving Loans - Amortized Cost Basis		Total
	(in thousands)
Agricultural Finance:
Internally Assigned Risk Rating:
Acceptable	$	148,802	$	243,690	$	513,841	$	535,172	$	272,257	$	1,228,548	$	362,825	$	3,305,135
Special mention(1)	—		2,568		1,294		877		—		39,657		527		44,923
Substandard(2)	—		—		—		131		1,541		27,236		1,263		30,171
Total	$	148,802	$	246,258	$	515,135	$	536,180	$	273,798	$	1,295,441	$	364,615	$	3,380,229
For the Three Months Ended September 30, 2023:
Current period charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
For the Nine Months Ended September 30, 2023:
Current period 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, 2023
	Year of Origination:
	2023		2022		2021		2020		2019		Prior		Revolving Loans - Amortized Cost Basis		Total
	(in thousands)
Rural Infrastructure Finance:
Internally Assigned Risk Rating:
Acceptable	$	—	$	—	$	—	$	—	$	—	$	426,504	$	61,013	$	487,517
Special mention(1)	—		—		—		—		—		—		—		—
Substandard(2)	—		—		—		—		—		—		—		—
Total	$	—	$	—	$	—	$	—	$	—	$	426,504	$	61,013	$	487,517
For the Three Months Ended September 30, 2023:
Current period charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
For the Nine Months Ended September 30, 2023:
Current period 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, 2022
	Year of Origination:
	2022		2021		2020		2019		2018		Prior		Revolving Loans - Amortized Cost Basis		Total
	(in thousands)
Agricultural Finance:
Internally Assigned Risk Rating:
Acceptable	$	202,998	$	496,269	$	535,798	$	254,293	$	207,379	$	1,107,834	$	296,508	$	3,101,079
Special mention(1)	—		1,319		1,778		—		1,198		42,680		3,205		50,180
Substandard(2)	—		—		176		—		3,588		32,597		3,372		39,733
Total	$	202,998	$	497,588	$	537,752	$	254,293	$	212,165	$	1,183,111	$	303,085	$	3,190,992
For the Three Months Ended September 30, 2022:
Current period charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
For the Nine Months Ended September 30, 2022:
Current period 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, 2022
	Year of Origination:
	2022		2021		2020		2019		2018		Prior		Revolving Loans - Amortized Cost Basis		Total
	(in thousands)
Rural Infrastructure Finance:
Internally Assigned Risk Rating:
Acceptable	$	—	$	—	$	—	$	—	$	—	$	470,659	$	52,533	$	523,192
Special mention(1)	—		—		—		—		—		—		—		—
Substandard(2)	—		—		—		—		—		—		—		—
Total	$	—	$	—	$	—	$	—	$	—	$	470,659	$	52,533	$	523,192
For the Three Months Ended September 30, 2022:
Current period charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
For the Nine Months Ended September 30, 2022:
Current period 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.

XML

Notes Payable

9 Months Ended

Sep. 30, 2023

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 year or less, whereas medium-term notes generally have maturities of 0.5 years to 25.0 years.

The following tables set forth information related to Farmer Mac's borrowings as of September 30, 2023 and December 31, 2022:

Table 7.1

	September 30, 2023
	Outstanding as of September 30				Average Outstanding During the Quarter
	Amount		Weighted- Average Rate		Amount		Weighted- Average Rate
	(dollars in thousands)
Due within one year:
Discount notes	$	1,535,856	5.30	%	$	942,297	4.92	%
Medium-term notes	947,466		4.75	%	2,085,249		4.00	%
Current portion of medium-term notes	5,472,893		2.49	%
Total due within one year	$	7,956,215	3.30	%
Due after one year:
Medium-term notes due in:
Two years	$	5,231,168	3.05	%
Three years	3,243,230		2.21	%
Four years	3,297,724		2.64	%
Five years	2,306,430		4.07	%
Thereafter	3,567,720		2.80	%
Total due after one year	$	17,646,272	2.90	%
Total principal net of discounts	$	25,602,487	3.03	%
Hedging adjustments	(478,942)
Total	$	25,123,545

	December 31, 2022
	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	$	565,578	3.91	%	$	1,325,026	0.96	%
Medium-term notes	2,547,733		3.54	%	1,442,932		2.11	%
Current portion of medium-term notes	4,920,864		1.49	%
Total due within one year	$	8,034,175	2.31	%
Due after one year:
Medium-term notes due in:
Two years	$	4,072,740	1.71	%
Three years	3,506,480		2.10	%
Four years	2,967,625		1.44	%
Five years	2,361,197		3.12	%
Thereafter	4,057,982		2.60	%
Total due after one year	$	16,966,024	2.15	%
Total principal net of discounts	$	25,000,199	2.20	%
Hedging adjustments	(531,086)
Total	$	24,469,113

The maximum amount of Farmer Mac's discount notes outstanding at any month end during the nine months ended September 30, 2023 and 2022 was $1.5 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 2023 as of September 30, 2023:

Table 7.2

Debt Callable in 2023 as of September 30, 2023, by Maturity
	Amount		Weighted-Average Rate
	(dollars in thousands)
Maturity:
2024	$	816,830	3.66	%
2025	664,046		2.33	%
2026	1,012,989		1.57	%
2027	560,204		2.27	%
Thereafter	1,161,379		2.51	%
Total	$	4,215,448	2.45	%

The following schedule summarizes the earliest interest rate reset date, or debt maturities, of total borrowings outstanding as of September 30, 2023, 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:
2023	$	5,468,108	4.57	%
2024	5,454,586		2.62	%
2025	4,222,333		2.60	%
2026	3,319,847		1.81	%
2027	2,573,406		3.14	%
Thereafter	4,564,207		2.87	%
Total principal net of discounts	$	25,602,487	3.03	%

During the nine months ended September 30, 2023 and 2022, Farmer Mac called $111.0 million and $26.0 million of callable medium-term notes, respectively.

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 to fulfill 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, 2023, Farmer Mac had not used this borrowing authority.

Gains on Repurchases of Outstanding Debt

No outstanding debt repurchases were made in the nine months ended September 30, 2023 and 2022.

XML

Equity

9 Months Ended

Sep. 30, 2023

Equity [Abstract]

EQUITY

EQUITY

Common Stock

During each of the first, second, and third quarters 2023, Farmer Mac paid a quarterly dividend of $1.10 per share on all classes of its common stock. For each quarter in 2022, Farmer Mac paid a quarterly dividend of $0.95 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. In March 2021, Farmer Mac's board of directors reinstated the share repurchase program on its previous terms (with a remaining authorization of up to $9.8 million in stock repurchases) and extended the expiration date of the program to March 2023. Farmer Mac did not repurchase any shares of its Class C non-voting common stock during that two-year period. In February 2023, Farmer Mac's board of directors renewed the share repurchase program on its previous terms (with a remaining authorization of up to $9.8 million in stock repurchases) and extended the expiration date of the program to February 2025. Farmer Mac did not repurchase any shares of its Class C non-voting common stock during third quarter 2023. As of September 30, 2023, 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.

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, 2023 and December 31, 2022, 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, 2023, Farmer Mac's minimum capital requirement was $840.1 million and its core capital level was $1.4 billion, which was $581.1 million above the minimum capital requirement as of that date. As of December 31, 2022, Farmer Mac's minimum capital requirement was $805.9 million and its core capital level was $1.3 billion, which was $516.9 million above the minimum capital requirement as of that date.

In accordance with a rule of the Farm Credit Administration ("FCA") 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.

XML

Fair Value Disclosures

9 Months Ended

Sep. 30, 2023

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, 2023 and December 31, 2022, 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, 2023
	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	$	—	$	—	$	19,033	$	19,033
Floating rate Government/GSE guaranteed mortgage-backed securities	—		2,465,545		—		2,465,545
Fixed rate GSE guaranteed mortgage-backed securities	—		1,386,378		—		1,386,378
Floating rate U.S. Treasuries	50,011		—		—		50,011
Fixed rate U.S. Treasuries	952,447		—		—		952,447
Total Available-for-sale Investment Securities	1,002,458		3,851,923		19,033		4,873,414
Farmer Mac Guaranteed Securities:
Available-for-sale:
AgVantage	—		—		5,048,708		5,048,708
Farmer Mac Guaranteed Securities	—		—		9,989		9,989
Total Farmer Mac Guaranteed Securities	—		—		5,058,697		5,058,697
USDA Securities:
Trading	—		—		1,302		1,302
Total USDA Securities	—		—		1,302		1,302
Financial derivatives	81		28,774		—		28,855
Guarantee Asset	—		—		5,963		5,963
Total Assets at fair value	$	1,002,539	$	3,880,697	$	5,084,995	$	9,968,231
Liabilities:
Financial derivatives	$	12	$	188,350	$	—	$	188,362
Total Liabilities at fair value	$	12	$	188,350	$	—	$	188,362

(1) Level 3 assets represent 18% of total assets and 50% of financial instruments measured at fair value.

Assets and Liabilities Measured at Fair Value as of December 31, 2022
	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	$	—	$	—	$	19,027	$	19,027
Floating rate Government/GSE guaranteed mortgage-backed securities	—		2,392,540		—		2,392,540
Fixed rate GSE guaranteed mortgage-backed securities	—		1,048,386		—		1,048,386
Fixed rate U.S. Treasuries	1,119,611		—		—		1,119,611
Total Available-for-sale Investment Securities	1,119,611		3,440,926		19,027		4,579,564
Farmer Mac Guaranteed Securities:
Available-for-sale:
AgVantage	—		—		7,599,379		7,599,379
Farmer Mac Guaranteed Securities	—		—		7,847		7,847
Total Farmer Mac Guaranteed Securities	—		—		7,607,226		7,607,226
USDA Securities:
Trading	—		—		1,767		1,767
Total USDA Securities	—		—		1,767		1,767
Financial derivatives	—		37,409		—		37,409
Guarantee Asset	—		—		4,467		4,467
Total Assets at fair value	$	1,119,611	$	3,478,335	$	7,632,487	$	12,230,433
Liabilities:
Financial derivatives	$	142	$	175,184	$	—	$	175,326
Total Liabilities at fair value	$	142	$	175,184	$	—	$	175,326

(1) Level 3 assets represent 28% of total assets and 62% of financial instruments measured at fair value.

There were no material assets or liabilities measured at fair value on a non-recurring basis as of September 30, 2023 or December 31, 2022.

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 nine months ended September 30, 2023 and 2022, there were no transfers within the fair value hierarchy.

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, 2023 and 2022.

Table 9.2

Level 3 Assets and Liabilities Measured at Fair Value for the Three Months Ended September 30, 2023
	Beginning Balance		Purchases		Settlements		Allowance for Losses		Realized and unrealized (losses)/gains included in Income		Unrealized gains included in Other Comprehensive Income		Transfers Out(1)		Ending Balance
	(in thousands)
Recurring:
Assets:
Investment Securities:
Available-for-sale:
Floating rate auction-rate certificates backed by Government guaranteed student loans	$	19,032	$	—	$	—	$	1	$	—	$	—	$	—	$	19,033
Total available-for-sale	19,032		—		—		1		—		—		—		19,033
Farmer Mac Guaranteed Securities:
Available-for-sale:
AgVantage	7,737,810		100,000		(6,875)		133		(107,917)		9,653		(2,684,096)		5,048,708
Farmer Mac Guaranteed Securities	7,605		—		(169)		—		—		2,553		—		9,989
Total available-for-sale	7,745,415		100,000		(7,044)		133		(107,917)		12,206		(2,684,096)		5,058,697
USDA Securities:
Trading	1,348		—		(44)		—		(2)		—		—		1,302
Total USDA Securities	1,348		—		(44)		—		(2)		—		—		1,302
Guarantee and commitment obligations:
Guarantee Asset	4,331		—		(84)		—		1,716		—		—		5,963
Total Guarantee and commitment obligations	4,331		—		(84)		—		1,716		—		—		5,963
Total Assets at fair value	$	7,770,126	$	100,000	$	(7,172)	$	134	$	(106,203)	$	12,206	$	(2,684,096)	$	5,084,995

(1) Includes $2.7 billion of AgVantage Securities transferred from available-for-sale to held-to-maturity on July 1, 2023.

Level 3 Assets and Liabilities Measured at Fair Value for the Three Months Ended September 30, 2022
	Beginning Balance		Purchases		Settlements		Allowance for Losses		Realized and unrealized 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	$	19,061	$	—	$	—	$	11	$	—	$	171	$	19,243
Total available-for-sale	19,061		—		—		11		—		171		19,243
Farmer Mac Guaranteed Securities:
Available-for-sale:
AgVantage	6,440,396		1,370,000		(627,131)		(11)		(204,450)		(13,043)		6,965,761
Farmer Mac Guaranteed Securities	9,816		—		(468)		—		—		(1,107)		8,241
Total available-for-sale	6,450,212		1,370,000		(627,599)		(11)		(204,450)		(14,150)		6,974,002
USDA Securities:
Trading	2,275		—		(383)		—		(41)		—		1,851
Total USDA Securities	2,275		—		(383)		—		(41)		—		1,851
Guarantee and commitment obligations:
Guarantee Asset	5,636		—		(229)		—		(715)		—		4,692
Total Guarantee and commitment obligations	5,636		—		(229)		—		(715)		—		4,692
Total Assets at fair value	$	6,477,184	$	1,370,000	$	(628,211)	$	—	$	(205,206)	$	(13,979)	$	6,999,788

Level 3 Assets and Liabilities Measured at Fair Value for the Nine Months Ended September 30, 2023
	Beginning Balance		Purchases		Settlements		Allowance for Losses		Realized and unrealized (losses)/gains included in Income		Unrealized gains included in Other Comprehensive Income		Transfers Out(1)		Ending Balance
	(in thousands)
Recurring:
Assets:
Investment Securities:
Available-for-sale:
Floating rate auction-rate certificates backed by Government guaranteed student loans	$	19,027	$	—	$	—	$	6	$	—	$	—	$	—	$	19,033
Total available-for-sale	19,027		—		—		6		—		—		—		19,033
Farmer Mac Guaranteed Securities:
Available-for-sale:
AgVantage	7,599,379		1,639,650		(1,405,674)		173		(116,447)		15,723		(2,684,096)		5,048,708
Farmer Mac Guaranteed Securities	7,847		—		(1,043)		—		—		3,185		—		9,989
Total available-for-sale	7,607,226		1,639,650		(1,406,717)		173		(116,447)		18,908		(2,684,096)		5,058,697
USDA Securities:
Trading	1,767		—		(479)		—		14		—		—		1,302
Total USDA Securities	1,767		—		(479)		—		14		—		—		1,302
Guarantee and commitment obligations:
Guarantee Asset	4,467		—		(506)		—		2,002		—		—		5,963
Total Guarantee and commitment obligations	4,467		—		(506)		—		2,002		—		—		5,963
Total Assets at fair value	$	7,632,487	$	1,639,650	$	(1,407,702)	$	179	$	(114,431)	$	18,908	$	(2,684,096)	$	5,084,995

(1) Includes $2.7 billion of AgVantage Securities transferred from available-for-sale to held-to-maturity on July 1, 2023.

Level 3 Assets and Liabilities Measured at Fair Value for the Nine Months Ended September 30, 2022
	Beginning Balance		Purchases		Settlements		Allowance for Losses		Realized and unrealized losses included in Income		Unrealized 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	$	19,254	$	—	$	—	$	14	$	—	$	(25)	$	19,243
Total available-for-sale	19,254		—		—		14		—		(25)		19,243
Farmer Mac Guaranteed Securities:
Available-for-sale:
AgVantage	6,316,145		2,722,750		(1,435,758)		(345)		(564,242)		(72,789)		6,965,761
Farmer Mac Guaranteed Securities	12,414		—		(1,205)		—		—		(2,968)		8,241
Total available-for-sale	6,328,559		2,722,750		(1,436,963)		(345)		(564,242)		(75,757)		6,974,002
USDA Securities:
Trading	4,401		—		(2,475)		—		(75)		—		1,851
Total USDA Securities	4,401		—		(2,475)		—		(75)		—		1,851
Guarantee and commitment obligations:
Guarantee Asset	6,237		—		(672)		—		(873)		—		4,692
Total Guarantee and commitment obligations	6,237		—		(672)		—		(873)		—		4,692
Total Assets at fair value	$	6,358,451	$	2,722,750	$	(1,440,110)	$	(331)	$	(565,190)	$	(75,782)	$	6,999,788

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, 2023 and December 31, 2022:

Table 9.3

	As of September 30, 2023
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	$	19,033	Indicative bids	Range of broker quotes	96.8% - 96.8% (96.8%)
Farmer Mac Guaranteed Securities:
AgVantage	$	5,048,708	Discounted cash flow	Discount rate	5.4% - 6.0% (5.7%)
Farmer Mac Guaranteed Securities	$	9,989	Discounted cash flow	Discount rate	8.5%
				CPR	3%
USDA Securities	$	1,302	Discounted cash flow	Discount rate	5.9% - 6.1% (6.0%)
				CPR	11% - 11% (11%)
Guarantee Asset	$	5,963	Discounted cash flow	Discount rate	8.5%
				CPR	3%

	As of December 31, 2022
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	$	19,027	Indicative bids	Range of broker quotes	96.8% - 96.8% (96.8%)
Farmer Mac Guaranteed Securities:
AgVantage	$	7,599,379	Discounted cash flow	Discount rate	4.7% - 6.1% (5.1%)
Farmer Mac Guaranteed Securities	$	7,847	Discounted cash flow	Discount rate	4.8% - 5.3% (5.1%)
				CPR	8%
USDA Securities	$	1,767	Discounted cash flow	Discount rate	5.1% - 5.7% (5.3%)
				CPR	19% - 27% (25%)
Guarantee Asset	$	4,467	Discounted cash flow	Discount rate	5.4% - 5.9% (5.7%)
				CPR	8%

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 do not 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, 2023 and December 31, 2022:

Table 9.4

	As of September 30, 2023				As of December 31, 2022
	Fair Value		Carrying Amount		Fair Value		Carrying Amount
	(in thousands)
Financial assets:
Cash and cash equivalents	$	782,318	$	782,318	$	861,002	$	861,002
Investment securities	4,925,183		4,924,253		4,630,701		4,628,268
Farmer Mac Guaranteed Securities	9,170,053		9,216,111		8,573,781		8,628,380
USDA Securities	1,933,529		2,323,657		2,099,445		2,411,601
Loans	9,718,846		10,537,173		9,666,710		10,205,466
Financial derivatives	28,855		28,855		37,409		37,409
Guarantee and commitment fees receivable	58,819		49,809		50,653		47,151
Financial liabilities:
Notes payable	24,224,819		25,123,545		23,591,330		24,469,113
Debt securities of consolidated trusts held by third parties	1,209,757		1,334,014		1,106,837		1,181,948
Financial derivatives	188,362		188,362		175,326		175,326
Guarantee and commitment obligations	56,617		47,607		50,083		46,582

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 the market standard methodology of netting the discounted future fixed cash payments (or

receipts) and the discounted expected variable cash receipts (or payments) 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.

XML

Business Segment Reporting

9 Months Ended

Sep. 30, 2023

Segment Reporting [Abstract]

BUSINESS SEGMENT REPORTING

BUSINESS SEGMENT REPORTING

The following table presents the alignment of the Farmer Mac's seven segments:

Agricultural Finance		Rural Infrastructure Finance		Treasury
Farm & Ranch	Corporate AgFinance	Rural Utilities	Renewable Energy	Funding	Investments	Corporate

The financial information presented below reflects the accounts of Farmer Mac and its subsidiaries on a

consolidated basis. Accordingly, the core earnings for Farmer Mac's segments would differ from any stand-alone financial statements of Farmer Mac's subsidiaries. These differences would be due to various factors, including the exclusion of unrealized gains and losses related to fair value changes of trading assets and financial derivatives, as well as the allocation of certain expenses such as operating expenses, dividends and interest expense related to the issuance of capital and the issuance of indebtedness managed at the corporate level.

The following tables present core earnings for Farmer Mac's segments and a reconciliation to consolidated net income for the three and nine months ended September 30, 2023 and 2022.

Table 10.1

Core Earnings by Business Segment
For the Three Months Ended September 30, 2023
	Agricultural Finance				Rural Infrastructure				Treasury				Corporate
	Farm & Ranch		Corporate AgFinance		Rural  Utilities		Renewable Energy		Funding		Investments				Reconciling Adjustments			Consolidated Net Income
	(in thousands)
Net interest income	$	33,735	$	8,250	$	6,393	$	1,150	$	37,642	$	473	$	—	$	—		$	87,643
Less: reconciling adjustments(1)(2)(3)	(1,017)		—		(31)		—		(3,230)		59		—		4,219			—
Net effective spread	32,718		8,250		6,362		1,150		34,412		532		—		4,219			—
Guarantee and commitment fees	4,447		78		279		24		—		—		—		692			5,520
Other income/(expense)(3)	807		—		—		—		3		6		240		2,884			3,940
Total revenues	37,972		8,328		6,641		1,174		34,415		538		240		7,795			97,103
Release of/(provision for) losses	13		3,694		(3,504)		(66)		—		(1)		—		—			136
Release of/(provision for) reserve for losses	58		—		(13)		—		—		—		—		—			45
Operating expenses	—		—		—		—		—		—		(24,034)		—			(24,034)
Total non-interest expense	58		—		(13)		—		—		—		(24,034)		—			(23,989)
Core earnings before income taxes	38,043		12,022		3,124		1,108		34,415		537		(23,794)		7,795		(4)	73,250
Income tax (expense)/benefit	(7,989)		(2,525)		(656)		(233)		(7,226)		(113)		5,267		(1,638)			(15,113)
Core earnings before preferred stock dividends	30,054		9,497		2,468		875		27,189		424		(18,527)		6,157		(4)	58,137
Preferred stock dividends	—		—		—		—		—		—		(6,792)		—			(6,792)
Segment core earnings/(losses)	$	30,054	$	9,497	$	2,468	$	875	$	27,189	$	424	$	(25,319)	$	6,157	(4)	$	51,345
Total Assets	$	14,660,371	$	1,619,664	$	6,648,693	$	320,572	$	—	$	4,866,969	$	195,112	$	—		$	28,311,381
Total on- and off-balance sheet program assets at principal balance	$	18,461,835	$	1,741,306	$	7,118,295	$	330,575	$	—	$	—	$	—	$	—		$	27,652,011

(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 "Gains on financial derivatives" on the consolidated financial statements, to determine the effective funding cost for each operating segment.

(4)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, 2022
	Agricultural Finance				Rural Infrastructure				Treasury				Corporate
	Farm & Ranch		Corporate AgFinance		Rural  Utilities		Renewable Energy		Funding		Investments				Reconciling Adjustments			Consolidated Net Income
	(in thousands)
Net interest income	$	34,173	$	7,600	$	4,253	$	705	$	23,913	$	(2,791)	$	—	$	—		$	67,853
Less: reconciling adjustments(1)(2)(3)	(830)		—		(33)		—		(1,349)		—		—		2,212			—
Net effective spread	33,343		7,600		4,220		705		22,564		(2,791)		—		2,212			—
Guarantee and commitment fees	3,833		46		309		13		—		—		—		(1,558)			2,643
Other income/(expense)(3)	469		4		—		—		—		—		—		909			1,382
Total revenues	37,645		7,650		4,529		718		22,564		(2,791)		—		1,563			71,878
Release of/(provision for) losses	93		(333)		(414)		26		—		11		—		—			(617)
Release of reserve for losses	139		—		28		—		—		—		—		—			167
Operating expenses	—		—		—		—		—		—		(19,379)		—			(19,379)
Total non-interest expense	139		—		28		—		—		—		(19,379)		—			(19,212)
Core earnings before income taxes	37,877		7,317		4,143		744		22,564		(2,780)		(19,379)		1,563		(4)	52,049
Income tax (expense)/benefit	(7,953)		(1,536)		(869)		(156)		(4,739)		584		4,366		(328)			(10,631)
Core earnings before preferred stock dividends	29,924		5,781		3,274		588		17,825		(2,196)		(15,013)		1,235		(4)	41,418
Preferred stock dividends	—		—		—		—		—		—		(6,791)		—			(6,791)
Segment core earnings/(losses)	$	29,924	$	5,781	$	3,274	$	588	$	17,825	$	(2,196)	$	(21,804)	$	1,235	(4)	$	34,627
Total Assets	$	14,113,686	$	1,558,139	$	5,779,300	$	186,832	$	—	$	4,608,868	$	194,763	$	—		$	26,441,588
Total on- and off-balance sheet program assets at principal balance	$	17,199,347	$	1,634,786	$	6,296,263	$	196,242	$	—	$	—	$	—	$	—		$	25,326,638

(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 "Gains on financial derivatives" on the consolidated financial statements, to determine the effective funding cost for each operating segment.

(4)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, 2023
	Agricultural Finance				Rural Infrastructure				Treasury				Corporate
	Farm & Ranch		Corporate AgFinance		Rural  Utilities		Renewable Energy		Funding		Investments				Reconciling Adjustments			Consolidated Net Income
	(in thousands)
Net interest income	$	102,671	$	22,842	$	17,772	$	3,108	$	98,588	$	397	$	—	$	—		$	245,378
Less: reconciling adjustments(1)(2)(3)	(3,100)		—		(95)		—		60		186		—		2,949			—
Net effective spread	99,571		22,842		17,677		3,108		98,648		583		—		2,949			—
Guarantee and commitment fees	12,960		193		841		69		—		—		—		(1,121)			12,942
Other income/(expense)(3)	2,216		12		—		—		3		17		284		5,484			8,016
Total revenues	114,747		23,047		18,518		3,177		98,651		600		284		7,312			266,336
Release of/(provision for) losses	136		(934)		(652)		(38)		—		4		—		—			(1,484)
(Provision for)/release of reserve for losses	(594)		—		367		—		—		—		—		—			(227)
Operating expenses	—		—		—		—		—		—		(71,935)		—			(71,935)
Total non-interest expense	(594)		—		367		—		—		—		(71,935)		—			(72,162)
Core earnings before income taxes	114,289		22,113		18,233		3,139		98,651		604		(71,651)		7,312		(4)	192,690
Income tax (expense)/benefit	(24,001)		(4,644)		(3,829)		(659)		(20,716)		(127)		15,206		(1,536)			(40,306)
Core earnings before preferred stock dividends	90,288		17,469		14,404		2,480		77,935		477		(56,445)		5,776		(4)	152,384
Preferred stock dividends	—		—		—		—		—		—		(20,374)		—			(20,374)
Segment core earnings/(losses)	$	90,288	$	17,469	$	14,404	$	2,480	$	77,935	$	477	$	(76,819)	$	5,776	(4)	$	132,010
Total Assets	$	14,660,371	$	1,619,664	$	6,648,693	$	320,572	$	—	$	4,866,969	$	195,112	$	—		$	28,311,381
Total on- and off-balance sheet program assets at principal balance	$	18,461,835	$	1,741,306	$	7,118,295	$	330,575	$	—	$	—	$	—	$	—		$	27,652,011

(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 "Gains on financial derivatives" on the consolidated financial statements, to determine the effective funding cost for each operating segment.

(4)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, 2022
	Agricultural Finance				Rural Infrastructure				Treasury				Corporate
	Farm & Ranch		Corporate AgFinance		Rural  Utilities		Renewable Energy		Funding		Investments				Reconciling Adjustments			Consolidated Net Income
	(in thousands)
Net interest income	$	99,197	$	21,738	$	11,218	$	1,548	$	67,673	$	(4,069)	$	—	$	—		$	197,305
Less: reconciling adjustments(1)(2)(3)	(2,910)		—		(106)		—		(9,863)		—		—		12,879			—
Net effective spread	96,287		21,738		11,112		1,548		57,810		(4,069)		—		12,879			—
Guarantee and commitment fees	12,387		108		929		43		—		—		—		(3,916)			9,551
Other income/(expense)(3)	1,030		261		—		—		—		—		3		21,987			23,281
Total revenues	109,704		22,107		12,041		1,591		57,810		(4,069)		3		30,950			230,137
Release of/(provision for) losses	440		(1,498)		1,927		(184)		—		14		—		—			699
Release of reserve for losses	324		—		116		—		—		—		—		—			440
Operating expenses	—		—		—		—		—		—		(60,815)		—			(60,815)
Total non-interest expense	324		—		116		—		—		—		(60,815)		—			(60,375)
Core earnings before income taxes	110,468		20,609		14,084		1,407		57,810		(4,055)		(60,812)		30,950		(4)	170,461
Income tax (expense)/benefit	(23,196)		(4,327)		(2,956)		(295)		(12,141)		852		12,827		(6,499)			(35,735)
Core earnings before preferred stock dividends	87,272		16,282		11,128		1,112		45,669		(3,203)		(47,985)		24,451		(4)	134,726
Preferred stock dividends	—		—		—		—		—		—		(20,374)		—			(20,374)
Segment core earnings/(losses)	$	87,272	$	16,282	$	11,128	$	1,112	$	45,669	$	(3,203)	$	(68,359)	$	24,451	(4)	$	114,352
Total Assets	$	14,113,686	$	1,558,139	$	5,779,300	$	186,832	$	—	$	4,608,868	$	194,763	$	—		$	26,441,588
Total on- and off-balance sheet program assets at principal balance	$	17,199,347	$	1,634,786	$	6,296,263	$	196,242	$	—	$	—	$	—	$	—		$	25,326,638

(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 "Gains on financial derivatives" on the consolidated financial statements, to determine the effective funding cost for each operating segment.

(4)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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Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended						9 Months Ended
	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Sep. 30, 2023	Sep. 30, 2022
Pay vs Performance Disclosure
Net Income	$ 58,137	$ 47,212	$ 47,035	$ 41,418	$ 41,855	$ 51,453	$ 152,384	$ 134,726

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Insider Trading Arrangements	3 Months Ended
	Sep. 30, 2023
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

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Summary of Significant Accounting Policies (Policies)

9 Months Ended

Sep. 30, 2023

Accounting Policies [Abstract]

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.

New Accounting Standards

New Accounting StandardsRecently Adopted Accounting Guidance

Standard	Description	Date of Adoption	Effect on Consolidated Financial Statements
ASU 2020-04 and 2021-01, 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.	January 1, 2020	During the second quarter 2023, Farmer Mac adopted optional expedients including those relating to qualifying hedging relationships and contract modification relief, and as of June 30, 2023, has no further variable-rate exposure to LIBOR. To date, these elections did not have a material effect on Farmer Mac's financial position, results of operations, or cash flows. Farmer Mac does not expect to elect further expedients through the ending date of December 31, 2024.
ASU 2022-06, Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848	The amendments in this Update deferred the sunset date in Topic 848 from December 31, 2022 to December 31, 2024.	December 21, 2022	Farmer Mac does not expect to elect further expedients through the ending date of December 31, 2024.
ASU 2022-02, Financial Instruments-Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures	The Update addresses and amends areas identified by the Financial Accounting Standards Board as part of its post-implementation review of the accounting standard that introduced the current expected credit losses (“CECL”) model. The amendments eliminate the accounting guidance for troubled debt restructurings by creditors that have adopted the CECL model and enhance the disclosure requirements for loan refinancings and restructurings made with borrowers experiencing financial difficulty. In addition, the amendments require disclosure of current-period gross write offs for financing receivables and net investment in leases by year of origination in the vintage disclosures.	January 1, 2023	The adoption of this Update did not have a material effect on Farmer Mac's financial position, results of operations, or cash flows.
ASU 2022-01, Fair Value Hedging - Portfolio Layer Method	The Update introduces the portfolio layer method, which expands the current single-layer method to allow multiple hedged layers of a single closed portfolio under the method (previously named, last-of-layer method). Additionally, it expands the scope of the portfolio layer method to include non-prepayable assets, specifies eligible hedging instruments in a single-layer hedge, provides additional guidance on the accounting for and disclosure of hedge basis adjustments under the portfolio layer method, specifies how hedge basis adjustments should be considered when determining credit losses for the assets included in the closed portfolio, and provides that an entity may reclassify HTM debt securities identified within 30 days of the date of adoption to AFS if the entity applies portfolio layer method hedging to those debt securities.	January 1, 2023	Farmer Mac adopted this guidance as of January 1, 2023. Farmer Mac does not currently hedge interest rate risk for single closed portfolios of financial assets, so adoption of this guidance had no effect on Farmer Mac's financial condition, results of operations, cash flows, or disclosures given current strategies.

Reclassifications

ReclassificationsCertain reclassifications of prior period information were made to conform to the current period presentation. The reclassifications of prior period information were not material to the consolidated financial statements.

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Summary of Significant Accounting Policies (Tables)

9 Months Ended

Sep. 30, 2023

Accounting Policies [Abstract]

Schedule of Consolidation of Variable Interest Entities

Table 1.1

	Consolidation of Variable Interest Entities
	As of September 30, 2023
	Agricultural Finance		Treasury		Total
	(in thousands)
On-Balance Sheet:
Consolidated VIEs:
Loans held for investment in consolidated trusts, at amortized cost	$	1,422,854	$	—	$	1,422,854
Debt securities of consolidated trusts held by third parties (1)(2)	1,334,014		—		1,334,014
Unconsolidated VIEs:
Farmer Mac Guaranteed Securities:
Carrying value	39,131		—		39,131
Maximum exposure to loss (3)	38,689		—		38,689
Investment securities:
Carrying value (4)	—		3,532,286		3,532,286
Maximum exposure to loss (3) (4)	—		3,809,871		3,809,871
Off-Balance Sheet:
Unconsolidated VIEs:
Farmer Mac Guaranteed Securities:
Maximum exposure to loss (3) (5)	455,681		—		455,681

(1)Includes borrower remittances of $0.4 million. The borrower remittances had not been passed through to third-party investors as of September 30, 2023.

(2)Includes $89.2 million in unamortized discount related to structured securitization transactions.

(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, government-sponsored enterprise ("GSE")-guaranteed mortgage-backed securities, and other mission related investments.

(5)The amount under the Agricultural Finance line of business relates to unconsolidated trusts where it was determined that Farmer Mac was either not the primary beneficiary due to shared power with an unrelated party or a subordinate class majority holder has the unilateral right to remove Farmer Mac as Master Servicer without cause.

	Consolidation of Variable Interest Entities
	As of December 31, 2022
	Agricultural Finance		Treasury		Total
	(in thousands)
On-Balance Sheet:
Consolidated VIEs:
Loans held for investment in consolidated trusts, at amortized cost	$	1,211,576	$	—	$	1,211,576
Debt securities of consolidated trusts held by third parties (1)(2)	1,181,948		—		1,181,948
Unconsolidated VIEs:
Farmer Mac Guaranteed Securities:
Carrying value	28,466		—		28,466
Maximum exposure to loss (3)	31,208		—		31,208
Investment securities:
Carrying value (4)	—		3,138,619		3,138,619
Maximum exposure to loss (3) (4)	—		3,341,427		3,341,427
Off-Balance Sheet:
Unconsolidated VIEs:
Farmer Mac Guaranteed Securities:
Maximum exposure to loss (3) (5)	500,953		—		500,953

(1)Includes borrower remittances of $8.1 million. The borrower remittances had not been passed through to third-party investors as of December 31, 2022.

(2)Includes $37.7 million in unamortized discount related to a structured securitization transaction.

(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, government-sponsored enterprise ("GSE")-guaranteed mortgage-backed securities, and other mission related investments.

(5)The amount under the Agricultural Finance line of business relates to unconsolidated trusts where it was determined that Farmer Mac was either not the primary beneficiary due to shared power with an unrelated party or a subordinate class majority holder has the unilateral right to remove Farmer Mac as Master Servicer without cause.

Schedule of Basic and Diluted EPS

The following schedule reconciles basic and diluted EPS for the three and nine months ended September 30, 2023 and 2022:

Table 1.2

	For the Three Months Ended
	September 30, 2023					September 30, 2022
	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	$	51,345	10,839	$	4.74	$	34,627	10,799	$	3.21
Effect of dilutive securities(1)
SARs and restricted stock	—		99	(0.05)		—		75	(0.03)
Diluted EPS	$	51,345	10,938	$	4.69	$	34,627	10,874	$	3.18

(1)For the three months ended September 30, 2023 and 2022, SARs and restricted stock of 16,761 and 18,432 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, 2023 and 2022, contingent shares of unvested restricted stock of 32,469 and 18,535 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, 2023					September 30, 2022
	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	$	132,010	10,825	$	12.20	$	114,352	10,787	$	10.61
Effect of dilutive securities(1)
SARs and restricted stock	—		99	(0.12)		—		88	(0.10)
Diluted EPS	$	132,010	10,924	$	12.08	$	114,352	10,875	$	10.51

(1)For the nine months ended September 30, 2023 and 2022, SARs and restricted stock of 37,990 and 37,120 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, 2023 and 2022, contingent shares of unvested restricted stock of 32,407 and 18,535 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, 2023 and 2022.

Table 1.3

	As of September 30, 2023								As of September 30, 2022
	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	$	(96,607)	$	15,486	$	46,770	$	(34,351)	$	(98,924)	$	16,818	$	32,622	$	(49,484)
Other comprehensive income/(loss) before reclassifications	17,443		(25,199)		10,376		2,620		(33,041)		—		20,277		(12,764)
Amounts reclassified from AOCI	(4)		294		(4,398)		(4,108)		(2)		(492)		(847)		(1,341)
Net comprehensive income/(loss)	17,439		(24,905)		5,978		(1,488)		(33,043)		(492)		19,430		(14,105)
Ending Balance	$	(79,168)	$	(9,419)	$	52,748	$	(35,839)	$	(131,967)	$	16,326	$	52,052	$	(63,589)
For the Nine Months Ended:
Beginning Balance	$	(115,561)	$	16,357	$	48,361	$	(50,843)	$	(6,932)	$	16,153	$	(5,368)	$	3,853
Other comprehensive income/(loss) before reclassifications	36,406		(25,199)		16,277		27,484		(125,027)		—		55,766		(69,261)
Amounts reclassified from AOCI	(13)		(577)		(11,890)		(12,480)		(8)		173		1,654		1,819
Net comprehensive income/(loss)	36,393		(25,776)		4,387		15,004		(125,035)		173		57,420		(67,442)
Ending Balance	$	(79,168)	$	(9,419)	$	52,748	$	(35,839)	$	(131,967)	$	16,326	$	52,052	$	(63,589)

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, 2023 and 2022:

Table 1.4

	For the Three Months Ended
	September 30, 2023						September 30, 2022
	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	$	22,081	$	4,638	$	17,443	$	(41,824)	$	(8,783)	$	(33,041)
Less reclassification adjustments included in:
Net interest income(1)	—		—		—		—		—		—
Other income(2)	(5)		(1)		(4)		(3)		(1)		(2)
Total	$	22,076	$	4,637	$	17,439	$	(41,827)	$	(8,784)	$	(33,043)
Held-to-maturity securities:
Change in fair value(3)	$	(31,898)	$	(6,699)	$	(25,199)	$	—	$	—	$	—
Less reclassification adjustments included in:
Net interest income(4)	373		79		294		(622)		(130)		(492)
Total	$	(31,525)	$	(6,620)	$	(24,905)	$	(622)	$	(130)	$	(492)
Cash flow hedges
Unrealized gains on cash flow hedges	$	13,135	$	2,759	$	10,376	$	25,668	$	5,391	$	20,277
Less reclassification adjustments included in:
Net interest income(5)	(5,569)		(1,171)		(4,398)		(1,072)		(225)		(847)
Total	$	7,566	$	1,588	$	5,978	$	24,596	$	5,166	$	19,430
Other comprehensive loss	$	(1,883)	$	(395)	$	(1,488)	$	(17,853)	$	(3,748)	$	(14,105)

(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)Represents the accumulated unrealized loss on the AgVantage Securities transferred from available-for-sale to held-to-maturity.

(4)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.

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

	For the Nine Months Ended
	September 30, 2023						September 30, 2022
	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	$	46,084	$	9,678	$	36,406	$	(158,263)	$	(33,236)	$	(125,027)
Less reclassification adjustments included in:
Net interest income(1)	—		—		—		—		—		—
Other income(2)	(16)		(3)		(13)		(10)		(2)		(8)
Total	$	46,068	$	9,675	$	36,393	$	(158,273)	$	(33,238)	$	(125,035)
Held-to-maturity securities:
Change in fair value(3)	$	(31,898)	$	(6,699)	$	(25,199)	$	—	$	—	$	—
Less reclassification adjustments included in:
Net interest income(4)	(730)		(153)		(577)		220		47		173
Total	$	(32,628)	$	(6,852)	$	(25,776)	$	220	$	47	$	173
Cash flow hedges
Unrealized gains on cash flow hedges	$	20,604	$	4,327	$	16,277	$	70,590	$	14,824	$	55,766
Less reclassification adjustments included in:
Net interest income(5)	(15,051)		(3,161)		(11,890)		2,094		440		1,654
Total	$	5,553	$	1,166	$	4,387	$	72,684	$	15,264	$	57,420
Other comprehensive income/(loss)	$	18,993	$	3,989	$	15,004	$	(85,369)	$	(17,927)	$	(67,442)

(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)Represents the accumulated unrealized loss on the AgVantage Securities transferred from available-for-sale to held-to-maturity.

(4)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.

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

Schedule of Recently Adopted Accounting Guidance

Recently Adopted Accounting Guidance

Standard	Description	Date of Adoption	Effect on Consolidated Financial Statements
ASU 2020-04 and 2021-01, 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.	January 1, 2020	During the second quarter 2023, Farmer Mac adopted optional expedients including those relating to qualifying hedging relationships and contract modification relief, and as of June 30, 2023, has no further variable-rate exposure to LIBOR. To date, these elections did not have a material effect on Farmer Mac's financial position, results of operations, or cash flows. Farmer Mac does not expect to elect further expedients through the ending date of December 31, 2024.
ASU 2022-06, Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848	The amendments in this Update deferred the sunset date in Topic 848 from December 31, 2022 to December 31, 2024.	December 21, 2022	Farmer Mac does not expect to elect further expedients through the ending date of December 31, 2024.
ASU 2022-02, Financial Instruments-Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures	The Update addresses and amends areas identified by the Financial Accounting Standards Board as part of its post-implementation review of the accounting standard that introduced the current expected credit losses (“CECL”) model. The amendments eliminate the accounting guidance for troubled debt restructurings by creditors that have adopted the CECL model and enhance the disclosure requirements for loan refinancings and restructurings made with borrowers experiencing financial difficulty. In addition, the amendments require disclosure of current-period gross write offs for financing receivables and net investment in leases by year of origination in the vintage disclosures.	January 1, 2023	The adoption of this Update did not have a material effect on Farmer Mac's financial position, results of operations, or cash flows.
ASU 2022-01, Fair Value Hedging - Portfolio Layer Method	The Update introduces the portfolio layer method, which expands the current single-layer method to allow multiple hedged layers of a single closed portfolio under the method (previously named, last-of-layer method). Additionally, it expands the scope of the portfolio layer method to include non-prepayable assets, specifies eligible hedging instruments in a single-layer hedge, provides additional guidance on the accounting for and disclosure of hedge basis adjustments under the portfolio layer method, specifies how hedge basis adjustments should be considered when determining credit losses for the assets included in the closed portfolio, and provides that an entity may reclassify HTM debt securities identified within 30 days of the date of adoption to AFS if the entity applies portfolio layer method hedging to those debt securities.	January 1, 2023	Farmer Mac adopted this guidance as of January 1, 2023. Farmer Mac does not currently hedge interest rate risk for single closed portfolios of financial assets, so adoption of this guidance had no effect on Farmer Mac's financial condition, results of operations, cash flows, or disclosures given current strategies.

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Investment Securities (Tables)

9 Months Ended

Sep. 30, 2023

Investments, Debt and Equity Securities [Abstract]

Schedule of Farmer Mac Investment Securities

The following tables set forth information about Farmer Mac's available-for-sale and held-to-maturity investment securities as of September 30, 2023 and December 31, 2022:

Table 2.1

	As of September 30, 2023
	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	$	(27)	$	—	$	(640)	$	19,033
Floating rate Government/GSE guaranteed mortgage-backed securities	2,499,578		(1,170)		2,498,408		—		2,054		(34,917)		2,465,545
Fixed rate GSE guaranteed mortgage-backed securities	1,629,166		(45,118)		1,584,048		—		—		(197,670)		1,386,378
Floating rate U.S. Treasuries	50,000		(23)		49,977		—		34		—		50,011
Fixed rate U.S. Treasuries	978,585		(16,242)		962,343		—		—		(9,896)		952,447
Total available-for-sale	5,177,029		(62,553)		5,114,476		(27)		2,088		(243,123)		4,873,414
Held-to-maturity:
Floating rate Government/GSE guaranteed mortgage-backed securities(3)	45,032		—		45,032		—		930		—		45,962
Total held-to-maturity	$	45,032	$	—	$	45,032	$	—	$	930	$	—	$	45,962

(1)Amounts presented exclude $17.4 million of accrued interest receivable on investment securities as of September 30, 2023.

(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 6.5% as of September 30, 2023.

	As of December 31, 2022
	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	$	(33)	$	—	$	(640)	$	19,027
Floating rate Government/GSE guaranteed mortgage-backed securities	2,433,696		(200)		2,433,496		—		1,954		(42,910)		2,392,540
Fixed rate GSE guaranteed mortgage-backed securities	1,207,416		(30,321)		1,177,095		—		2,128		(130,837)		1,048,386
Fixed rate U.S. Treasuries	1,145,915		(6,780)		1,139,135		—		621		(20,145)		1,119,611
Total available-for-sale	4,806,727		(37,301)		4,769,426		(33)		4,703		(194,532)		4,579,564
Held-to-maturity:
Floating rate Government/GSE guaranteed mortgage-backed securities(3)	45,032		—		45,032		—		2,433		—		47,465
Total held-to-maturity	$	45,032	$	—	$	45,032	$	—	$	2,433	$	—	$	47,465

(1)Amounts presented exclude $10.6 million of accrued interest receivable on investment securities as of December 31, 2022.

(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 4.5% as of December 31, 2022.

The following tables set forth information about on-balance sheet Farmer Mac Guaranteed Securities and USDA Securities as of September 30, 2023 and December 31, 2022:

Table 3.1

	As of September 30, 2023
	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	$	4,158,857	$	(30,389)	$	4,128,468	$	(196)	$	4,525	$	(49,221)	$	4,083,576
Farmer Mac Guaranteed USDA Securities	29,109		33		29,142		—		—		(1,362)		27,780
Total Farmer Mac Guaranteed Securities	4,187,966		(30,356)		4,157,610		(196)		4,525		(50,583)		4,111,356
USDA Securities	2,299,407		22,948		2,322,355		—		194		(390,322)		1,932,227
Total held-to-maturity	$	6,487,373	$	(7,408)	$	6,479,965	$	(196)	$	4,719	$	(440,905)	$	6,043,583
Available-for-sale:
AgVantage	$	5,526,857	$	—	$	5,526,857	$	(374)	$	—	$	(477,775)	$	5,048,708
Farmer Mac Guaranteed Securities(3)	—		9,580		9,580		—		409		—		9,989
Total available-for-sale	$	5,526,857	$	9,580	$	5,536,437	$	(374)	$	409	$	(477,775)	$	5,058,697
Trading:
USDA Securities(4)	$	1,314	$	57	$	1,371	$	—	$	—	$	(69)	$	1,302

(1)Amounts presented exclude $53.3 million, $58.9 million, and $38,000 of accrued interest receivable on available-for-sale, held-to-maturity, and trading securities, respectively, as of September 30, 2023.

(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)Fair value includes $10.0 million of an interest-only security with a notional amount of $239.1 million.

(4)The trading USDA securities had a weighted average yield of 5.50% as of September 30, 2023.

	As of December 31, 2022
	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	$	1,000,689	$	(95)	$	1,000,594	$	(59)	$	353	$	(54,098)	$	946,790
Farmer Mac Guaranteed USDA Securities	20,586		33		20,619		—		2		(856)		19,765
Total Farmer Mac Guaranteed Securities	1,021,275		(62)		1,021,213		(59)		355		(54,954)		966,555
USDA Securities	2,384,946		24,888		2,409,834		—		668		(312,824)		2,097,678
Total held-to-maturity	$	3,406,221	$	24,826	$	3,431,047	$	(59)	$	1,023	$	(367,778)	$	3,064,233
Available-for-sale:
AgVantage	$	8,008,067	$	806	$	8,008,873	$	(546)	$	2,061	$	(411,009)	$	7,599,379
Farmer Mac Guaranteed Securities(3)	—		10,622		10,622		—		—		(2,775)		$	7,847
Total available-for-sale	$	8,008,067	$	11,428	$	8,019,495	$	(546)	$	2,061	$	(413,784)	$	7,607,226
Trading:
USDA Securities(4)	$	1,770	$	80	$	1,850	$	—	$	—	$	(83)	$	1,767

(1)Amounts presented exclude $51.5 million, $44.4 million, and $47,000 of accrued interest receivable on available-for-sale, held-to-maturity, and trading securities, respectively, as of December 31, 2022.

(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)Fair value includes $7.8 million of an interest-only security with a notional amount of $250.1 million.

(4)The trading USDA securities had a weighted average yield of 4.84% as of December 31, 2022.

Schedule of Unrealized Losses on Available-for-Sale Investment Securities

As of September 30, 2023 and December 31, 2022, unrealized losses on available-for-sale investment securities were as follows:

Table 2.2

	As of September 30, 2023
	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	$	—	$	—	$	19,033	$	(640)
Floating rate Government/GSE guaranteed mortgage-backed securities	583,799		(4,076)		1,431,925		(30,841)
Fixed rate Government/GSE guaranteed mortgage-backed securities	535,288		(29,649)		851,082		(168,021)
Fixed rate U.S. Treasuries	655,068		(4,552)		297,378		(5,344)
Total	$	1,774,155	$	(38,277)	$	2,599,418	$	(204,846)
Number of securities in loss position			85				170

	As of December 31, 2022
	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	$	—	$	—	$	19,027	$	(640)
Floating rate Government/GSE guaranteed mortgage-backed securities	1,884,146		(36,976)		193,964		(5,934)
Fixed rate Government/GSE guaranteed mortgage-backed securities	621,215		(56,434)		336,782		(74,403)
Fixed rate U.S. Treasuries	314,524		(2,842)		704,780		(17,303)
Total	$	2,819,885	$	(96,252)	$	1,254,553	$	(98,280)
Number of securities in loss position			174				51

As of September 30, 2023 and December 31, 2022, 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, 2023
	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	$	2,022,393	$	(2,613)	$	812,575	$	(46,608)
Farmer Mac Guaranteed USDA Securities	19,559		(322)		8,251		(1,040)
USDA Securities	1,495		(22)		1,921,243		(390,300)
Total held-to-maturity	$	2,043,447	$	(2,957)	$	2,742,069	$	(437,948)
Available-for-sale:
AgVantage	$	993,705	$	(30,193)	$	4,055,377	$	(447,582)
Farmer Mac Guaranteed Securities	—		—		—		—
Total available-for-sale	$	993,705	$	(30,193)	$	4,055,377	$	(447,582)

	As of December 31, 2022
	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	$	548,634	$	(11,455)	$	382,358	$	(42,643)
Farmer Mac Guaranteed USDA Securities	19,790		(856)		—		—
USDA Securities	2,086,108		(312,824)		—		—
Total held-to-maturity	$	2,654,532	$	(325,135)	$	382,358	$	(42,643)
Available-for-sale:
AgVantage	$	4,642,096	$	(267,886)	$	1,548,551	$	(143,123)
Farmer Mac Guaranteed Securities	7,847		(2,775)		—		—
Total available-for-sale	$	4,649,943	$	(270,661)	$	1,548,551	$	(143,123)

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, 2023 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, 2023
	Available-for-Sale Securities
	Amortized Cost		Fair Value		Weighted- Average Yield
	(dollars in thousands)
Due within one year	$	589,475	$	584,714	1.35%
Due after one year through five years	1,171,601		1,135,888		4.06%
Due after five years through ten years	2,534,914		2,358,496		4.39%
Due after ten years	818,486		794,316		5.61%
Total	$	5,114,476	$	4,873,414	4.16%

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, 2023 are set forth below. The balances presented are based on their contractual maturities, although the actual maturities may differ due to prepayments of the underlying assets.

Table 3.3

	As of September 30, 2023
	Available-for-Sale Securities
	Amortized Cost(1)		Fair Value		Weighted- Average Yield
	(dollars in thousands)
Due within one year	$	693,100	$	682,379	3.25	%
Due after one year through five years	2,739,174		2,579,604		3.47	%
Due after five years through ten years	1,142,500		997,848		3.27	%
Due after ten years	961,663		798,866		3.55	%
Total	$	5,536,437	$	5,058,697	3.41	%

(1)Amounts presented exclude $53.3 million of accrued interest receivable.

	As of September 30, 2023
	Held-to-Maturity Securities
	Amortized Cost(1)		Fair Value		Weighted- Average Yield
	(dollars in thousands)
Due within one year	$	2,071,858	$	2,066,836	5.61	%
Due after one year through five years	1,321,681		1,269,796		4.22	%
Due after five years through ten years	453,755		409,148		4.30	%
Due after ten years	2,632,671		2,297,803		4.19	%
Total	$	6,479,965	$	6,043,583	4.68	%

(1)Amounts presented exclude $58.9 million of accrued interest receivable.

XML

Farmer Mac Guaranteed Securities and USDA Securities (Tables)

9 Months Ended

Sep. 30, 2023

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 available-for-sale and held-to-maturity investment securities as of September 30, 2023 and December 31, 2022:

Table 2.1

	As of September 30, 2023
	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	$	(27)	$	—	$	(640)	$	19,033
Floating rate Government/GSE guaranteed mortgage-backed securities	2,499,578		(1,170)		2,498,408		—		2,054		(34,917)		2,465,545
Fixed rate GSE guaranteed mortgage-backed securities	1,629,166		(45,118)		1,584,048		—		—		(197,670)		1,386,378
Floating rate U.S. Treasuries	50,000		(23)		49,977		—		34		—		50,011
Fixed rate U.S. Treasuries	978,585		(16,242)		962,343		—		—		(9,896)		952,447
Total available-for-sale	5,177,029		(62,553)		5,114,476		(27)		2,088		(243,123)		4,873,414
Held-to-maturity:
Floating rate Government/GSE guaranteed mortgage-backed securities(3)	45,032		—		45,032		—		930		—		45,962
Total held-to-maturity	$	45,032	$	—	$	45,032	$	—	$	930	$	—	$	45,962

(1)Amounts presented exclude $17.4 million of accrued interest receivable on investment securities as of September 30, 2023.

(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 6.5% as of September 30, 2023.

	As of December 31, 2022
	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	$	(33)	$	—	$	(640)	$	19,027
Floating rate Government/GSE guaranteed mortgage-backed securities	2,433,696		(200)		2,433,496		—		1,954		(42,910)		2,392,540
Fixed rate GSE guaranteed mortgage-backed securities	1,207,416		(30,321)		1,177,095		—		2,128		(130,837)		1,048,386
Fixed rate U.S. Treasuries	1,145,915		(6,780)		1,139,135		—		621		(20,145)		1,119,611
Total available-for-sale	4,806,727		(37,301)		4,769,426		(33)		4,703		(194,532)		4,579,564
Held-to-maturity:
Floating rate Government/GSE guaranteed mortgage-backed securities(3)	45,032		—		45,032		—		2,433		—		47,465
Total held-to-maturity	$	45,032	$	—	$	45,032	$	—	$	2,433	$	—	$	47,465

(1)Amounts presented exclude $10.6 million of accrued interest receivable on investment securities as of December 31, 2022.

(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 4.5% as of December 31, 2022.

The following tables set forth information about on-balance sheet Farmer Mac Guaranteed Securities and USDA Securities as of September 30, 2023 and December 31, 2022:

Table 3.1

	As of September 30, 2023
	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	$	4,158,857	$	(30,389)	$	4,128,468	$	(196)	$	4,525	$	(49,221)	$	4,083,576
Farmer Mac Guaranteed USDA Securities	29,109		33		29,142		—		—		(1,362)		27,780
Total Farmer Mac Guaranteed Securities	4,187,966		(30,356)		4,157,610		(196)		4,525		(50,583)		4,111,356
USDA Securities	2,299,407		22,948		2,322,355		—		194		(390,322)		1,932,227
Total held-to-maturity	$	6,487,373	$	(7,408)	$	6,479,965	$	(196)	$	4,719	$	(440,905)	$	6,043,583
Available-for-sale:
AgVantage	$	5,526,857	$	—	$	5,526,857	$	(374)	$	—	$	(477,775)	$	5,048,708
Farmer Mac Guaranteed Securities(3)	—		9,580		9,580		—		409		—		9,989
Total available-for-sale	$	5,526,857	$	9,580	$	5,536,437	$	(374)	$	409	$	(477,775)	$	5,058,697
Trading:
USDA Securities(4)	$	1,314	$	57	$	1,371	$	—	$	—	$	(69)	$	1,302

(1)Amounts presented exclude $53.3 million, $58.9 million, and $38,000 of accrued interest receivable on available-for-sale, held-to-maturity, and trading securities, respectively, as of September 30, 2023.

(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)Fair value includes $10.0 million of an interest-only security with a notional amount of $239.1 million.

(4)The trading USDA securities had a weighted average yield of 5.50% as of September 30, 2023.

	As of December 31, 2022
	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	$	1,000,689	$	(95)	$	1,000,594	$	(59)	$	353	$	(54,098)	$	946,790
Farmer Mac Guaranteed USDA Securities	20,586		33		20,619		—		2		(856)		19,765
Total Farmer Mac Guaranteed Securities	1,021,275		(62)		1,021,213		(59)		355		(54,954)		966,555
USDA Securities	2,384,946		24,888		2,409,834		—		668		(312,824)		2,097,678
Total held-to-maturity	$	3,406,221	$	24,826	$	3,431,047	$	(59)	$	1,023	$	(367,778)	$	3,064,233
Available-for-sale:
AgVantage	$	8,008,067	$	806	$	8,008,873	$	(546)	$	2,061	$	(411,009)	$	7,599,379
Farmer Mac Guaranteed Securities(3)	—		10,622		10,622		—		—		(2,775)		$	7,847
Total available-for-sale	$	8,008,067	$	11,428	$	8,019,495	$	(546)	$	2,061	$	(413,784)	$	7,607,226
Trading:
USDA Securities(4)	$	1,770	$	80	$	1,850	$	—	$	—	$	(83)	$	1,767

(1)Amounts presented exclude $51.5 million, $44.4 million, and $47,000 of accrued interest receivable on available-for-sale, held-to-maturity, and trading securities, respectively, as of December 31, 2022.

(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)Fair value includes $7.8 million of an interest-only security with a notional amount of $250.1 million.

(4)The trading USDA securities had a weighted average yield of 4.84% as of December 31, 2022.

Schedule of Unrealized Losses on Available-for-Sale Investment Securities

As of September 30, 2023 and December 31, 2022, unrealized losses on available-for-sale investment securities were as follows:

Table 2.2

	As of September 30, 2023
	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	$	—	$	—	$	19,033	$	(640)
Floating rate Government/GSE guaranteed mortgage-backed securities	583,799		(4,076)		1,431,925		(30,841)
Fixed rate Government/GSE guaranteed mortgage-backed securities	535,288		(29,649)		851,082		(168,021)
Fixed rate U.S. Treasuries	655,068		(4,552)		297,378		(5,344)
Total	$	1,774,155	$	(38,277)	$	2,599,418	$	(204,846)
Number of securities in loss position			85				170

	As of December 31, 2022
	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	$	—	$	—	$	19,027	$	(640)
Floating rate Government/GSE guaranteed mortgage-backed securities	1,884,146		(36,976)		193,964		(5,934)
Fixed rate Government/GSE guaranteed mortgage-backed securities	621,215		(56,434)		336,782		(74,403)
Fixed rate U.S. Treasuries	314,524		(2,842)		704,780		(17,303)
Total	$	2,819,885	$	(96,252)	$	1,254,553	$	(98,280)
Number of securities in loss position			174				51

As of September 30, 2023 and December 31, 2022, 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, 2023
	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	$	2,022,393	$	(2,613)	$	812,575	$	(46,608)
Farmer Mac Guaranteed USDA Securities	19,559		(322)		8,251		(1,040)
USDA Securities	1,495		(22)		1,921,243		(390,300)
Total held-to-maturity	$	2,043,447	$	(2,957)	$	2,742,069	$	(437,948)
Available-for-sale:
AgVantage	$	993,705	$	(30,193)	$	4,055,377	$	(447,582)
Farmer Mac Guaranteed Securities	—		—		—		—
Total available-for-sale	$	993,705	$	(30,193)	$	4,055,377	$	(447,582)

	As of December 31, 2022
	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	$	548,634	$	(11,455)	$	382,358	$	(42,643)
Farmer Mac Guaranteed USDA Securities	19,790		(856)		—		—
USDA Securities	2,086,108		(312,824)		—		—
Total held-to-maturity	$	2,654,532	$	(325,135)	$	382,358	$	(42,643)
Available-for-sale:
AgVantage	$	4,642,096	$	(267,886)	$	1,548,551	$	(143,123)
Farmer Mac Guaranteed Securities	7,847		(2,775)		—		—
Total available-for-sale	$	4,649,943	$	(270,661)	$	1,548,551	$	(143,123)

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, 2023 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, 2023
	Available-for-Sale Securities
	Amortized Cost		Fair Value		Weighted- Average Yield
	(dollars in thousands)
Due within one year	$	589,475	$	584,714	1.35%
Due after one year through five years	1,171,601		1,135,888		4.06%
Due after five years through ten years	2,534,914		2,358,496		4.39%
Due after ten years	818,486		794,316		5.61%
Total	$	5,114,476	$	4,873,414	4.16%

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, 2023 are set forth below. The balances presented are based on their contractual maturities, although the actual maturities may differ due to prepayments of the underlying assets.

Table 3.3

	As of September 30, 2023
	Available-for-Sale Securities
	Amortized Cost(1)		Fair Value		Weighted- Average Yield
	(dollars in thousands)
Due within one year	$	693,100	$	682,379	3.25	%
Due after one year through five years	2,739,174		2,579,604		3.47	%
Due after five years through ten years	1,142,500		997,848		3.27	%
Due after ten years	961,663		798,866		3.55	%
Total	$	5,536,437	$	5,058,697	3.41	%

(1)Amounts presented exclude $53.3 million of accrued interest receivable.

	As of September 30, 2023
	Held-to-Maturity Securities
	Amortized Cost(1)		Fair Value		Weighted- Average Yield
	(dollars in thousands)
Due within one year	$	2,071,858	$	2,066,836	5.61	%
Due after one year through five years	1,321,681		1,269,796		4.22	%
Due after five years through ten years	453,755		409,148		4.30	%
Due after ten years	2,632,671		2,297,803		4.19	%
Total	$	6,479,965	$	6,043,583	4.68	%

(1)Amounts presented exclude $58.9 million of accrued interest receivable.

XML

Financial Derivatives (Tables)

9 Months Ended

Sep. 30, 2023

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. The table below includes accrued interest on cleared swaps, but excludes $14.3 million and $6.1 million of accrued interest receivable and $6.3 million and $3.6 million of accrued interest payable on uncleared swaps as of September 30, 2023 and December 31, 2022, respectively. The aforementioned accrued interest on uncleared swaps is included within Accrued Interest Receivable and Accrued Interest Payable on the consolidated balance sheets.

Table 4.1

	As of September 30, 2023
			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:
Receive fixed non-callable	$	8,942,935	$	2,996	$	(11)	5.46%	2.74%		1.67
Pay fixed non-callable	8,830,943		81		(11,054)		2.39%	5.33%		9.89
Receive fixed callable	4,181,077		—		(179,299)		5.26%	3.06%		2.37
Cash flow hedges:
Interest rate swaps:
Pay fixed non-callable	563,000		27,510		(372)		1.94%	5.74%		4.51
No hedge designation:
Interest rate swaps:
Pay fixed non-callable	183,882		1,240		(166)		2.92%	5.44%		4.01
Receive fixed non-callable	851,146		69		(3)		5.34%	4.51%		0.70
Basis swaps	895,384		58		(625)		5.43%	5.45%		3.89
Treasury futures	11,900		81		(12)				108.64
Netting adjustments(1)			(3,180)		3,180
Total financial derivatives	$	24,460,267	$	28,855	$	(188,362)

(1)Amounts represent the application of the netting requirements that allow Farmer Mac to settle positive and negative positions, including accrued interest, held or placed with the same clearing agent.

	As of December 31, 2022
			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:
Receive fixed non-callable	$	10,033,750	$	19	$	(4,686)	4.31%	2.03%		1.64
Pay fixed non-callable	8,149,871		13,689		(366)		2.23%	4.33%		10.76
Receive fixed callable	2,764,577		461		(174,757)		4.21%	1.98%		3.18
Cash flow hedges:
Interest rate swaps:
Pay fixed non-callable	588,000		27,275		—		1.93%	4.72%		5.05
No hedge designation:
Interest rate swaps:
Pay fixed non-callable	187,479		1,065		(1)		3.05%	4.09%		4.52
Receive fixed non-callable	287,750		—		(130)		4.31%	1.16%		1.76
Basis swaps	1,860,384		112		(456)		4.40%	4.42%		2.46
Treasury futures	6,800		—		(142)				114.38
Netting adjustments(1)			(5,212)		5,212
Total financial derivatives	$	23,878,611	$	37,409	$	(175,326)

(1)Amounts represent the application of the netting requirements that allow Farmer Mac to settle positive and negative positions, including accrued interest, held or placed with the same clearing agent.

Schedule of Net Income/(Expense) Recognized

The following tables summarize the net income/(expense) recognized in the consolidated statements of operations related to derivatives for the three and nine months ended September 30, 2023 and 2022:

Table 4.2

	For the Three Months Ended September 30, 2023
	Net Income/(Expense) Recognized in Consolidated Statement of Operations on Derivatives
	Net Interest Income								Non-Interest Income		Total
	Interest Income Investments and Cash Equivalents		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	$	79,947	$	161,351	$	140,513	$	(294,168)	$	2,671	$	90,314
Income/(expense) related to interest settlements on fair value hedging relationships:
Recognized on derivatives	9,950		40,114		17,692		(92,663)		—		(24,907)
Recognized on hedged items	9,006		46,303		16,089		(91,525)		—		(20,127)
Premium/discount amortization recognized on hedged items	623		—		—		(732)		—		(109)
Income/(expense) related to interest settlements on fair value hedging relationships	$	19,579	$	86,417	$	33,781	$	(184,920)	$	—	$	(45,143)
Gains/(losses) on fair value hedging relationships:
Recognized on derivatives	$	42,051	$	110,196	$	107,265	$	9,475	$	—	$	268,987
Recognized on hedged items	(41,944)		(107,965)		(105,403)		(10,465)		—		(265,777)
Gains/(losses) on fair value hedging relationships	$	107	$	2,231	$	1,862	$	(990)	$	—	$	3,210
Expense related to interest settlements on cash flow hedging relationships:
Interest settlements reclassified from AOCI into net income on derivatives	$	—	$	—	$	—	$	5,569	$	—	$	5,569
Recognized on hedged items	—		—		—		(8,287)		—		(8,287)
Discount amortization recognized on hedged items	—		—		—		(14)		—		(14)
Expense recognized on cash flow hedges	$	—	$	—	$	—	$	(2,732)	$	—	$	(2,732)
Gains on financial derivatives not designated in hedging relationships:
Gains on interest rate swaps	$	—	$	—	$	—	$	—	$	2,772	$	2,772
Interest expense on interest rate swaps	—		—		—		—		(805)		(805)
Treasury futures	—		—		—		—		704		704
Gains on financial derivatives not designated in hedge relationships	$	—	$	—	$	—	$	—	$	2,671	$	2,671

	For the Three Months Ended September 30, 2022
	Net Income/(Expense) Recognized in Consolidated Statement of Operations on Derivatives
	Net Interest Income								Non-Interest Income		Total
	Interest Income Investments and Cash Equivalents		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:	$	21,581	$	74,695	$	97,514	$	(125,937)	$	772	$	68,625
Income/(expense) related to interest settlements on fair value hedging relationships:
Recognized on derivatives	957		(350)		1,837		(22,679)		—		(20,235)
Recognized on hedged items	4,617		35,763		14,857		(35,263)		—		19,974
Discount amortization recognized on hedged items	(59)		—		—		(549)		—		(608)
Income/(expense) related to interest settlements on fair value hedging relationships	$	5,515	$	35,413	$	16,694	$	(58,491)	$	—	$	(869)
(Losses)/gains on fair value hedging relationships:
Recognized on derivatives	$	49,373	$	201,864	$	105,683	$	(197,884)	$	—	$	159,036
Recognized on hedged items	(52,308)		(204,765)		(100,490)		197,902		—		(159,661)
(Losses)/gains on fair value hedging relationships	$	(2,935)	$	(2,901)	$	5,193	$	18	$	—	$	(625)
Expense related to interest settlements on cash flow hedging relationships:
Interest settlements reclassified from AOCI into net income on derivatives	$	—	$	—	$	—	$	1,072	$	—	$	1,072
Recognized on hedged items	—		—		—		(4,046)		—		(4,046)
Discount amortization recognized on hedged items	—		—		—		(15)		—		(15)
Expense recognized on cash flow hedges	$	—	$	—	$	—	$	(2,989)	$	—	$	(2,989)
Gains on financial derivatives not designated in hedge relationships:
Gains on interest rate swaps	$	—	$	—	$	—	$	—	$	5,054	$	5,054
Interest expense on interest rate swaps	—		—		—		—		(2,613)		(2,613)
Treasury futures	—		—		—		—		(1,669)		(1,669)
Gains on financial derivatives not designated in hedge relationships	$	—	$	—	$	—	$	—	$	772	$	772

	For the Nine Months Ended September 30, 2023
	Net Income/(Expense) Recognized in Consolidated Statement of Operations on Derivatives
	Net Interest Income								Non-Interest Income		Total
	Interest Income Investments and Cash Equivalents		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	$	209,429	$	442,649	$	388,837	$	(795,537)	$	4,763	$	250,141
Income/(expense) related to interest settlements on fair value hedging relationships:
Recognized on derivatives	24,952		104,023		46,625		(258,358)		—		(82,758)
Recognized on hedged items	23,865		133,995		47,144		(243,053)		—		(38,049)
Premium/discount amortization recognized on hedged items	1,399		—		—		(2,137)		—		(738)
Income/(expense) related to interest settlements on fair value hedging relationships	$	50,216	$	238,018	$	93,769	$	(503,548)	$	—	$	(121,545)
(Losses)/gains on fair value hedging relationships:
Recognized on derivatives	$	45,722	$	117,267	$	97,346	$	50,916	$	—	$	311,251
Recognized on hedged items	(46,485)		(116,591)		(97,827)		(52,144)		—		(313,047)
(Losses)/gains on fair value hedging relationships	$	(763)	$	676	$	(481)	$	(1,228)	$	—	$	(1,796)
Expense related to interest settlements on cash flow hedging relationships:
Interest settlements reclassified from AOCI into net income on derivatives	$	—	$	—	$	—	$	15,051	$	—	$	15,051
Recognized on hedged items	—		—		—		(23,325)		—		(23,325)
Discount amortization recognized on hedged items	—		—		—		(41)		—		(41)
Expense recognized on cash flow hedges	$	—	$	—	$	—	$	(8,315)	$	—	$	(8,315)
Gains on financial derivatives not designated in hedging relationships:
Gains on interest rate swaps	$	—	$	—	$	—	$	—	$	5,263	$	5,263
Interest expense on interest rate swaps	—		—		—		—		(3,999)		(3,999)
Treasury futures	—		—		—		—		3,499		3,499
Gains on financial derivatives not designated in hedge relationships	$	—	$	—	$	—	$	—	$	4,763	$	4,763

	For the Nine Months Ended September 30, 2022
	Net Income/(Expense) Recognized in Consolidated Statement of Operations on Derivatives
	Net Interest Income								Non-Interest Income		Total
	Interest Income Investments and Cash Equivalents		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:	$	38,497	$	169,231	$	241,393	$	(251,816)	$	21,551	$	218,856
Income/(expense) related to interest settlements on fair value hedging relationships:
Recognized on derivatives	(1,536)		(37,687)		(9,568)		(3,831)		—		(52,622)
Recognized on hedged items	10,433		102,123		41,146		(76,862)		—		76,840
Discount amortization recognized on hedged items	(816)		—		—		(1,478)		—		(2,294)
Income/(expense) related to interest settlements on fair value hedging relationships	$	8,081	$	64,436	$	31,578	$	(82,171)	$	—	$	21,924
(Losses)/gains on fair value hedging relationships:
Recognized on derivatives	$	106,935	$	563,897	$	347,034	$	(523,432)	$	—	$	494,434
Recognized on hedged items	(108,002)		(564,679)		(337,443)		521,643		—		(488,481)
(Losses)/gains on fair value hedging relationships	$	(1,067)	$	(782)	$	9,591	$	(1,789)	$	—	$	5,953
Expense related to interest settlements on cash flow hedging relationships:
Interest settlements reclassified from AOCI into net income on derivatives	$	—	$	—	$	—	$	(2,094)	$	—	$	(2,094)
Recognized on hedged items	—		—		—		(6,654)		—		(6,654)
Discount amortization recognized on hedged items	—		—		—		(43)		—		(43)
Expense recognized on cash flow hedges	$	—	$	—	$	—	$	(8,791)	$	—	$	(8,791)
Gains on financial derivatives not designated in hedge relationships:
Gains on interest rate swaps	$	—	$	—	$	—	$	—	$	10,954	$	10,954
Interest expense on interest rate swaps	—		—		—		—		(5,496)		(5,496)
Treasury futures	—		—		—		—		16,093		16,093
Gains on financial derivatives not designated in hedge relationships	$	—	$	—	$	—	$	—	$	21,551	$	21,551

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, 2023 and December 31, 2022:

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, 2023		December 31, 2022		September 30, 2023		December 31, 2022
	(in thousands)
Investment securities, Available-for-Sale, at fair value	$	1,138,569	$	876,063	$	(153,592)	$	(107,107)
Farmer Mac Guaranteed Securities, Available-for-Sale, at fair value	5,025,413		4,814,784		(463,464)		(346,873)
Loans held for investment, at amortized cost	1,570,732		1,623,301		(425,105)		(327,278)
Notes Payable(1)	(12,614,569)		(12,151,382)		478,942		531,086

(1)Carrying amount represents amortized cost.

Offsetting Assets

The following tables present the fair value of financial assets and liabilities, based on the terms of Farmer Mac's master netting arrangements as of September 30, 2023 and December 31, 2022:

Table 4.4

	September 30, 2023
							Gross Amounts Not Offset in the Consolidated Balance Sheet
	Gross Amount Recognized		Gross Amounts offset in the Consolidated Balance Sheet		Net Amount Presented in the Consolidated Balance Sheet(1)		Netting Adjustments		Financial instruments pledged		Cash Collateral(2)		Net Amount
	(in thousands)
Assets:
Uncleared derivatives	$	27,583	$	—	$	27,583	$	(27,501)	$	—	$	—	$	82
Cleared derivatives	3,180		(3,180)		—		—		—		—		—
Total	$	30,763	$	(3,180)	$	27,583	$	(27,501)	$	—	$	—	$	82
Liabilities:
Uncleared derivatives	$	(150,625)	$	—	$	(150,625)	$	27,501	$	—	$	120,556	$	(2,568)
Cleared derivatives	(11,622)		3,180		(8,442)		—		204,407		—		195,965
Total	$	(162,247)	$	3,180	$	(159,067)	$	27,501	$	204,407	$	120,556	$	193,397

(1)Amounts presented may not agree to the consolidated balance sheet related to counterparties not subject to master netting agreements.

(2)Cash collateral excludes $24.1 million of collateral posted related to counterparties not subject to master netting agreements.

	December 31, 2022
							Gross Amounts Not Offset in the Consolidated Balance Sheet
	Gross Amount Recognized		Gross Amounts offset in the Consolidated Balance Sheet		Net Amount Presented in the Consolidated Balance Sheet(1)		Netting Adjustments		Financial instruments pledged		Cash Collateral(2)		Net Amount
	(in thousands)
Assets:
Uncleared derivatives	$	27,132	$	—	$	27,132	$	(27,132)	$	—	$	—	$	—
Cleared derivatives	14,450		(5,212)		9,238		—		203,993		—		213,231
Total	$	41,582	$	(5,212)	$	36,370	$	(27,132)	$	203,993	$	—	$	213,231
Liabilities:
Uncleared derivatives	$	(149,864)	$	—	$	(149,864)	$	27,132	$	—	$	121,065	$	(1,667)
Cleared derivatives	(5,212)		5,212		—		—		—		—		—
Total	$	(155,076)	$	5,212	$	(149,864)	$	27,132	$	—	$	121,065	$	(1,667)

(1)Amounts presented may not agree to the consolidated balance sheet related to counterparties not subject to master netting agreements.

(2)Cash collateral excludes $23.7 million of collateral posted related to counterparties not subject to master netting agreements.

Offsetting Liabilities

The following tables present the fair value of financial assets and liabilities, based on the terms of Farmer Mac's master netting arrangements as of September 30, 2023 and December 31, 2022:

Table 4.4

	September 30, 2023
							Gross Amounts Not Offset in the Consolidated Balance Sheet
	Gross Amount Recognized		Gross Amounts offset in the Consolidated Balance Sheet		Net Amount Presented in the Consolidated Balance Sheet(1)		Netting Adjustments		Financial instruments pledged		Cash Collateral(2)		Net Amount
	(in thousands)
Assets:
Uncleared derivatives	$	27,583	$	—	$	27,583	$	(27,501)	$	—	$	—	$	82
Cleared derivatives	3,180		(3,180)		—		—		—		—		—
Total	$	30,763	$	(3,180)	$	27,583	$	(27,501)	$	—	$	—	$	82
Liabilities:
Uncleared derivatives	$	(150,625)	$	—	$	(150,625)	$	27,501	$	—	$	120,556	$	(2,568)
Cleared derivatives	(11,622)		3,180		(8,442)		—		204,407		—		195,965
Total	$	(162,247)	$	3,180	$	(159,067)	$	27,501	$	204,407	$	120,556	$	193,397

(1)Amounts presented may not agree to the consolidated balance sheet related to counterparties not subject to master netting agreements.

(2)Cash collateral excludes $24.1 million of collateral posted related to counterparties not subject to master netting agreements.

	December 31, 2022
							Gross Amounts Not Offset in the Consolidated Balance Sheet
	Gross Amount Recognized		Gross Amounts offset in the Consolidated Balance Sheet		Net Amount Presented in the Consolidated Balance Sheet(1)		Netting Adjustments		Financial instruments pledged		Cash Collateral(2)		Net Amount
	(in thousands)
Assets:
Uncleared derivatives	$	27,132	$	—	$	27,132	$	(27,132)	$	—	$	—	$	—
Cleared derivatives	14,450		(5,212)		9,238		—		203,993		—		213,231
Total	$	41,582	$	(5,212)	$	36,370	$	(27,132)	$	203,993	$	—	$	213,231
Liabilities:
Uncleared derivatives	$	(149,864)	$	—	$	(149,864)	$	27,132	$	—	$	121,065	$	(1,667)
Cleared derivatives	(5,212)		5,212		—		—		—		—		—
Total	$	(155,076)	$	5,212	$	(149,864)	$	27,132	$	—	$	121,065	$	(1,667)

(1)Amounts presented may not agree to the consolidated balance sheet related to counterparties not subject to master netting agreements.

(2)Cash collateral excludes $23.7 million of collateral posted related to counterparties not subject to master netting agreements.

XML

Loans (Tables)

9 Months Ended

Sep. 30, 2023

Receivables [Abstract]

Schedule of Composition of Loan Balances

The following table includes loans held for investment and displays the composition of the loan balances as of September 30, 2023 and December 31, 2022:

Table 5.1

	As of September 30, 2023						As of December 31, 2022
	Unsecuritized		In Consolidated Trusts		Total		Unsecuritized		In Consolidated Trusts		Total
	(in thousands)
Agricultural Finance loans
Farm & Ranch	$	4,987,818	$	1,422,854	$	6,410,672	$	5,150,750	$	1,211,576	$	6,362,326
Corporate AgFinance	1,223,777		—		1,223,777		1,166,253		—		1,166,253
Total Agricultural Finance loans	6,211,595		1,422,854		7,634,449		6,317,003		1,211,576		7,528,579
Rural Infrastructure Finance loans	3,342,713		—		3,342,713		3,021,266		—		3,021,266
Total unpaid principal balance(1)	9,554,308		1,422,854		10,977,162		9,338,269		1,211,576		10,549,845
Unamortized premiums, discounts, fair value hedge basis adjustment, and other cost basis adjustments	(423,375)		—		(423,375)		(329,290)		—		(329,290)
Total loans	9,130,933		1,422,854		10,553,787		9,008,979		1,211,576		10,220,555
Allowance for losses	(16,162)		(452)		(16,614)		(14,629)		(460)		(15,089)
Total loans, net of allowance	$	9,114,771	$	1,422,402	$	10,537,173	$	8,994,350	$	1,211,116	$	10,205,466

(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 September 30, 2023 and December 31, 2022:

Table 5.2

	September 30, 2023		December 31, 2022
	Allowance for Losses		Allowance for Losses
	(in thousands)
Loans:
Agricultural Finance loans
Farm & Ranch	$	3,910	$	4,044
Corporate AgFinance	3,678		2,731
Total Agricultural Finance Loans	7,588		6,775
Rural Infrastructure Finance loans	9,026		8,314
Total	$	16,614	$	15,089

The following is a summary of the changes in the allowance for losses for the three and nine months ended September 30, 2023 and 2022:

Table 5.3

	September 30, 2023								September 30, 2022
	Agricultural Finance loans						Rural Infrastructure Finance loans(3)		Agricultural Finance loans						Rural Infrastructure Finance loans(3)
	Farm & Ranch(1)		Corporate AgFinance(2)		Total				Farm & Ranch(1)		Corporate AgFinance(2)		Total
	(in thousands)
For the Three Months Ended
Beginning Balance	$	3,935	$	7,367	$	11,302	$	5,446	$	2,265	$	1,750	$	4,015	$	8,388
(Release of)/provision for losses	(25)		(3,689)		(3,714)		3,580		(153)		334		181		418
Charge-offs	—		—		—		—		—		—		—		—
Ending Balance	$	3,910	$	3,678	$	7,588	$	9,026	$	2,112	$	2,084	$	4,196	$	8,806
For the Nine Months Ended
Beginning Balance	$	4,044	$	2,731	$	6,775	$	8,314	$	2,882	$	560	$	3,442	$	10,599
(Release of)/provision for losses	(134)		947		813		712		(686)		1,524		838		(1,793)
Charge-offs	—		—		—		—		(84)		—		(84)		—
Ending Balance	$	3,910	$	3,678	$	7,588	$	9,026	$	2,112	$	2,084	$	4,196	$	8,806

(1)As of September 30, 2023 and 2022, allowance for losses for Agricultural Finance Farm & Ranch loans includes $1.1 million and no allowance for collateral dependent assets secured by agricultural real estate, respectively.

(2)As of September 30, 2023 and 2022, allowance for losses for Agricultural Finance Corporate AgFinance loans includes $0.0 million and $1.7 million allowance for collateral dependent assets secured by agricultural real estate, respectively.

(3)As of both September 30, 2023 and 2022, 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 September 30, 2023 and December 31, 2022:

Table 5.4

	As of September 30, 2023
	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 loans
Farm & Ranch	$	6,319,094	$	15,652	$	5,321	$	6,739	$	27,712	$	63,866	$	6,410,672
Corporate AgFinance	1,223,777		—		—		—		—		—		1,223,777
Total Agricultural Finance loans	7,542,871		15,652		5,321		6,739		27,712		63,866		7,634,449
Rural Infrastructure Finance loans	3,342,713		—		—		—		—		—		3,342,713
Total	$	10,885,584	$	15,652	$	5,321	$	6,739	$	27,712	$	63,866	$	10,977,162

(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 $23.8 million of nonaccrual loans for which there was no associated allowance. During the three and nine months ended September 30, 2023, Farmer Mac received $0.4 million and $1.9 million in interest on nonaccrual loans, respectively.

	As of December 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 loans
Farm & Ranch	$	6,287,326	$	10,066	$	392	$	1,140	$	11,598	$	63,402	$	6,362,326
Corporate AgFinance	1,150,690		—		—		—		—		15,563		1,166,253
Total Agricultural Finance loans	7,438,016		10,066		392		1,140		11,598		78,965		7,528,579
Rural Infrastructure Finance loans	3,021,266		—		—		—		—		—		3,021,266
Total	$	10,459,282	$	10,066	$	392	$	1,140	$	11,598	$	78,965	$	10,549,845

(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 $22.0 million of nonaccrual loans for which there was no associated allowance. During the year ended December 31, 2022, Farmer Mac received $5.6 million in interest on nonaccrual loans.

The following table presents the unpaid principal balances by delinquency status of Agricultural Finance and Rural Infrastructure loans underlying LTSPCs and Farmer Mac Guaranteed Securities as of September 30, 2023 and December 31, 2022:

Table 6.7

	As of September 30, 2023
	Current		30-59 Days		60-89 Days		90 Days and Greater(1)		Total Past Due		Total Loans
	(in thousands)
Agricultural Finance:	$	3,368,620	$	5,196	$	3,573	$	2,840	$	11,609	$	3,380,229
Rural Infrastructure Finance:	487,517		—		—		—		—		487,517
Total	$	3,856,137	$	5,196	$	3,573	$	2,840	$	11,609	$	3,867,746

(1)Includes loans underlying off-balance sheet Farmer Mac 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, 2022
	Current		30-59 Days		60-89 Days		90 Days and Greater(1)		Total Past Due		Total Loans
	(in thousands)
Agricultural Finance:	$	3,174,939	$	11,614	$	622	$	3,817	$	16,053	$	3,190,992
Rural Infrastructure Finance:	523,192		—		—		—		—		523,192
Total	$	3,698,131	$	11,614	$	622	$	3,817	$	16,053	$	3,714,184

(1)Includes loans underlying off-balance sheet Farmer Mac 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 September 30, 2023 and December 31, 2022, by year of origination:

Table 5.5

	As of September 30, 2023
	Year of Origination:
	2023		2022		2021		2020		2019		Prior		Revolving Loans - Amortized Cost Basis		Total
	(in thousands)
Agricultural Finance - Farm & Ranch loans(1):
Internally Assigned Risk Rating:
Acceptable	$	346,745	$	1,143,457	$	1,633,550	$	1,129,203	$	317,213	$	1,077,958	$	379,009	$	6,027,135
Special mention(2)	49,039		48,891		61,030		12,530		19,164		29,464		13,430		233,548
Substandard(3)	520		20,900		7,514		21,626		23,690		64,942		10,797		149,989
Total	$	396,304	$	1,213,248	$	1,702,094	$	1,163,359	$	360,067	$	1,172,364	$	403,236	$	6,410,672
For the Three Months Ended September 30, 2023:
Current period charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
For the Nine Months Ended September 30, 2023:
Current period 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, 2023
	Year of Origination:
	2023		2022		2021		2020		2019		Prior		Revolving Loans - Amortized Cost Basis		Total
	(in thousands)
Agricultural Finance - Corporate AgFinance(1):
Internally Assigned Risk Rating:
Acceptable	$	180,030	$	98,524	$	262,572	$	123,685	$	99,696	$	113,758	$	240,977	$	1,119,242
Special mention(2)	—		14,625		15,632		50,856		20,347		1,021		2,054		104,535
Substandard(3)	—		—		—		—		—		—		—		—
Total	$	180,030	$	113,149	$	278,204	$	174,541	$	120,043	$	114,779	$	243,031	$	1,223,777
For the Three Months Ended September 30, 2023:
Current period charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
For the Nine Months Ended September 30, 2023:
Current period 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, 2023
	Year of Origination:
	2023		2022		2021		2020		2019		Prior		Revolving Loans - Amortized Cost Basis		Total
	(in thousands)
Rural Infrastructure Finance loans(1):
Internally Assigned Risk Rating:
Acceptable	$	450,241	$	694,635	$	189,385	$	598,689	$	711,794	$	610,062	$	58,413	$	3,313,219
Special mention(2)	—		—		—		—		—		—		—		—
Substandard(3)	—		29,494		—		—		—		—		—		29,494
Total	$	450,241	$	724,129	$	189,385	$	598,689	$	711,794	$	610,062	$	58,413	$	3,342,713
For the Three Months Ended September 30, 2023:
Current period charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
For the Nine Months Ended September 30, 2023:
Current period 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, 2022
	Year of Origination:
	2022		2021		2020		2019		2018		Prior		Revolving Loans - Amortized Cost Basis		Total
	(in thousands)
Agricultural Finance - Farm & Ranch loans(1):
Internally Assigned Risk Rating:
Acceptable	$	1,157,829	$	1,704,547	$	1,187,474	$	360,704	$	242,491	$	947,535	$	385,503	$	5,986,083
Special mention(2)	91,099		68,260		25,629		11,254		5,325		17,797		2,452		221,816
Substandard(3)	3,094		8,814		22,976		23,937		17,845		67,654		10,107		154,427
Total	$	1,252,022	$	1,781,621	$	1,236,079	$	395,895	$	265,661	$	1,032,986	$	398,062	$	6,362,326
For the Three Months Ended September 30, 2022:
Current period charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
For the Nine Months Ended September 30, 2022:
Current period 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 December 31, 2022
	Year of Origination:
	2022		2021		2020		2019		2018		Prior		Revolving Loans - Amortized Cost Basis		Total
	(in thousands)
Agricultural Finance - Corporate AgFinance loans(1):
Internally Assigned Risk Rating:
Acceptable	$	145,263	$	299,729	$	221,560	$	108,230	$	76,454	$	44,827	$	232,107	$	1,128,170
Special mention(2)	—		—		—		20,698		—		—		2,145		22,843
Substandard(3)	—		—		4,598		—		—		—		10,642		15,240
Total	$	145,263	$	299,729	$	226,158	$	128,928	$	76,454	$	44,827	$	244,894	$	1,166,253
For the Three Months Ended September 30, 2022:
Current period charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
For the Nine Months Ended September 30, 2022:
Current period 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, 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	$	741,021	$	220,420	$	629,223	$	739,270	$	7,932	$	649,830	$	33,570	$	3,021,266
Special mention(2)	—		—		—		—		—		—		—		—
Substandard(3)	—		—		—		—		—		—		—		—
Total	$	741,021	$	220,420	$	629,223	$	739,270	$	7,932	$	649,830	$	33,570	$	3,021,266
For the Three Months Ended September 30, 2022:
Current period charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
For the Nine Months Ended September 30, 2022:
Current period 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 Infrastructure loans underlying LTSPCs and Farmer Mac Guaranteed Securities as of September 30, 2023 and December 31, 2022, by year of origination:

Table 6.8

	As of September 30, 2023
	Year of Origination:
	2023		2022		2021		2020		2019		Prior		Revolving Loans - Amortized Cost Basis		Total
	(in thousands)
Agricultural Finance:
Internally Assigned Risk Rating:
Acceptable	$	148,802	$	243,690	$	513,841	$	535,172	$	272,257	$	1,228,548	$	362,825	$	3,305,135
Special mention(1)	—		2,568		1,294		877		—		39,657		527		44,923
Substandard(2)	—		—		—		131		1,541		27,236		1,263		30,171
Total	$	148,802	$	246,258	$	515,135	$	536,180	$	273,798	$	1,295,441	$	364,615	$	3,380,229
For the Three Months Ended September 30, 2023:
Current period charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
For the Nine Months Ended September 30, 2023:
Current period 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, 2023
	Year of Origination:
	2023		2022		2021		2020		2019		Prior		Revolving Loans - Amortized Cost Basis		Total
	(in thousands)
Rural Infrastructure Finance:
Internally Assigned Risk Rating:
Acceptable	$	—	$	—	$	—	$	—	$	—	$	426,504	$	61,013	$	487,517
Special mention(1)	—		—		—		—		—		—		—		—
Substandard(2)	—		—		—		—		—		—		—		—
Total	$	—	$	—	$	—	$	—	$	—	$	426,504	$	61,013	$	487,517
For the Three Months Ended September 30, 2023:
Current period charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
For the Nine Months Ended September 30, 2023:
Current period 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, 2022
	Year of Origination:
	2022		2021		2020		2019		2018		Prior		Revolving Loans - Amortized Cost Basis		Total
	(in thousands)
Agricultural Finance:
Internally Assigned Risk Rating:
Acceptable	$	202,998	$	496,269	$	535,798	$	254,293	$	207,379	$	1,107,834	$	296,508	$	3,101,079
Special mention(1)	—		1,319		1,778		—		1,198		42,680		3,205		50,180
Substandard(2)	—		—		176		—		3,588		32,597		3,372		39,733
Total	$	202,998	$	497,588	$	537,752	$	254,293	$	212,165	$	1,183,111	$	303,085	$	3,190,992
For the Three Months Ended September 30, 2022:
Current period charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
For the Nine Months Ended September 30, 2022:
Current period 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, 2022
	Year of Origination:
	2022		2021		2020		2019		2018		Prior		Revolving Loans - Amortized Cost Basis		Total
	(in thousands)
Rural Infrastructure Finance:
Internally Assigned Risk Rating:
Acceptable	$	—	$	—	$	—	$	—	$	—	$	470,659	$	52,533	$	523,192
Special mention(1)	—		—		—		—		—		—		—		—
Substandard(2)	—		—		—		—		—		—		—		—
Total	$	—	$	—	$	—	$	—	$	—	$	470,659	$	52,533	$	523,192
For the Three Months Ended September 30, 2022:
Current period charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
For the Nine Months Ended September 30, 2022:
Current period 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.

XML

Guarantees and Commitments (Tables)

9 Months Ended

Sep. 30, 2023

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, 2023 and December 31, 2022, 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, 2023		As of December 31, 2022
	(in thousands)
Agricultural Finance
Farmer Mac Guaranteed Securities	$	455,681	$	500,953
Rural Infrastructure Finance
Farmer Mac Guaranteed Securities	1,098		1,169
Total off-balance sheet Farmer Mac Guaranteed Securities	$	456,779	$	502,122

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, 2023		As of December 31, 2022
	(dollars in thousands)
Guarantee and commitment obligation	$	6,053	$	6,461
Weighted average remaining maturity:
Farmer Mac Guaranteed Securities	22.1 years		21.4 years
AgVantage Securities	1.2 years		2.0 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, 2023		September 30, 2022
	(in thousands)
Proceeds from new securitizations	$	222,188	$	305,410
Guarantee fees received	1,280		1,464

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, 2023		As of December 31, 2022
	(dollars in thousands)
Guarantee and commitment obligation(1)	$	41,554	$	40,121
Maximum principal amount	3,613,934		3,423,155
Weighted-average remaining maturity	14.7 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 September 30, 2023 and December 31, 2022:

Table 6.5

	September 30, 2023		December 31, 2022
	Reserve for Losses		Reserve for Losses
	(in thousands)
Agricultural Finance	$	1,412	$	819
Rural Infrastructure Finance	248		614
Total	$	1,660	$	1,433

The following is a summary of the changes in the reserve for losses for the three and nine month periods ended September 30, 2023 and 2022:

Table 6.6

	For the Three Months Ended				For the Nine Months Ended
	September 30, 2023		September 30, 2022		September 30, 2023		September 30, 2022
	Reserve for Losses		Reserve for Losses		Reserve for Losses		Reserve for Losses
	(in thousands)				(in thousands)
Agricultural Finance
Beginning Balance	$	1,471	$	882	$	819	$	1,068
(Release of)/provision for losses	(59)		(139)		593		(325)
Ending Balance	$	1,412	$	743	$	1,412	$	743
Rural Infrastructure Finance
Beginning Balance	$	234	$	795	$	614	$	882
Provision for/(release of) losses	14		(28)		(366)		(115)
Ending Balance	$	248	$	767	$	248	$	767

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, 2023 and December 31, 2022:

Table 5.4

	As of September 30, 2023
	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 loans
Farm & Ranch	$	6,319,094	$	15,652	$	5,321	$	6,739	$	27,712	$	63,866	$	6,410,672
Corporate AgFinance	1,223,777		—		—		—		—		—		1,223,777
Total Agricultural Finance loans	7,542,871		15,652		5,321		6,739		27,712		63,866		7,634,449
Rural Infrastructure Finance loans	3,342,713		—		—		—		—		—		3,342,713
Total	$	10,885,584	$	15,652	$	5,321	$	6,739	$	27,712	$	63,866	$	10,977,162

(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 $23.8 million of nonaccrual loans for which there was no associated allowance. During the three and nine months ended September 30, 2023, Farmer Mac received $0.4 million and $1.9 million in interest on nonaccrual loans, respectively.

	As of December 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 loans
Farm & Ranch	$	6,287,326	$	10,066	$	392	$	1,140	$	11,598	$	63,402	$	6,362,326
Corporate AgFinance	1,150,690		—		—		—		—		15,563		1,166,253
Total Agricultural Finance loans	7,438,016		10,066		392		1,140		11,598		78,965		7,528,579
Rural Infrastructure Finance loans	3,021,266		—		—		—		—		—		3,021,266
Total	$	10,459,282	$	10,066	$	392	$	1,140	$	11,598	$	78,965	$	10,549,845

(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 $22.0 million of nonaccrual loans for which there was no associated allowance. During the year ended December 31, 2022, Farmer Mac received $5.6 million in interest on nonaccrual loans.

The following table presents the unpaid principal balances by delinquency status of Agricultural Finance and Rural Infrastructure loans underlying LTSPCs and Farmer Mac Guaranteed Securities as of September 30, 2023 and December 31, 2022:

Table 6.7

	As of September 30, 2023
	Current		30-59 Days		60-89 Days		90 Days and Greater(1)		Total Past Due		Total Loans
	(in thousands)
Agricultural Finance:	$	3,368,620	$	5,196	$	3,573	$	2,840	$	11,609	$	3,380,229
Rural Infrastructure Finance:	487,517		—		—		—		—		487,517
Total	$	3,856,137	$	5,196	$	3,573	$	2,840	$	11,609	$	3,867,746

(1)Includes loans underlying off-balance sheet Farmer Mac 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, 2022
	Current		30-59 Days		60-89 Days		90 Days and Greater(1)		Total Past Due		Total Loans
	(in thousands)
Agricultural Finance:	$	3,174,939	$	11,614	$	622	$	3,817	$	16,053	$	3,190,992
Rural Infrastructure Finance:	523,192		—		—		—		—		523,192
Total	$	3,698,131	$	11,614	$	622	$	3,817	$	16,053	$	3,714,184

(1)Includes loans underlying off-balance sheet Farmer Mac 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 September 30, 2023 and December 31, 2022, by year of origination:

Table 5.5

	As of September 30, 2023
	Year of Origination:
	2023		2022		2021		2020		2019		Prior		Revolving Loans - Amortized Cost Basis		Total
	(in thousands)
Agricultural Finance - Farm & Ranch loans(1):
Internally Assigned Risk Rating:
Acceptable	$	346,745	$	1,143,457	$	1,633,550	$	1,129,203	$	317,213	$	1,077,958	$	379,009	$	6,027,135
Special mention(2)	49,039		48,891		61,030		12,530		19,164		29,464		13,430		233,548
Substandard(3)	520		20,900		7,514		21,626		23,690		64,942		10,797		149,989
Total	$	396,304	$	1,213,248	$	1,702,094	$	1,163,359	$	360,067	$	1,172,364	$	403,236	$	6,410,672
For the Three Months Ended September 30, 2023:
Current period charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
For the Nine Months Ended September 30, 2023:
Current period 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, 2023
	Year of Origination:
	2023		2022		2021		2020		2019		Prior		Revolving Loans - Amortized Cost Basis		Total
	(in thousands)
Agricultural Finance - Corporate AgFinance(1):
Internally Assigned Risk Rating:
Acceptable	$	180,030	$	98,524	$	262,572	$	123,685	$	99,696	$	113,758	$	240,977	$	1,119,242
Special mention(2)	—		14,625		15,632		50,856		20,347		1,021		2,054		104,535
Substandard(3)	—		—		—		—		—		—		—		—
Total	$	180,030	$	113,149	$	278,204	$	174,541	$	120,043	$	114,779	$	243,031	$	1,223,777
For the Three Months Ended September 30, 2023:
Current period charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
For the Nine Months Ended September 30, 2023:
Current period 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, 2023
	Year of Origination:
	2023		2022		2021		2020		2019		Prior		Revolving Loans - Amortized Cost Basis		Total
	(in thousands)
Rural Infrastructure Finance loans(1):
Internally Assigned Risk Rating:
Acceptable	$	450,241	$	694,635	$	189,385	$	598,689	$	711,794	$	610,062	$	58,413	$	3,313,219
Special mention(2)	—		—		—		—		—		—		—		—
Substandard(3)	—		29,494		—		—		—		—		—		29,494
Total	$	450,241	$	724,129	$	189,385	$	598,689	$	711,794	$	610,062	$	58,413	$	3,342,713
For the Three Months Ended September 30, 2023:
Current period charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
For the Nine Months Ended September 30, 2023:
Current period 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, 2022
	Year of Origination:
	2022		2021		2020		2019		2018		Prior		Revolving Loans - Amortized Cost Basis		Total
	(in thousands)
Agricultural Finance - Farm & Ranch loans(1):
Internally Assigned Risk Rating:
Acceptable	$	1,157,829	$	1,704,547	$	1,187,474	$	360,704	$	242,491	$	947,535	$	385,503	$	5,986,083
Special mention(2)	91,099		68,260		25,629		11,254		5,325		17,797		2,452		221,816
Substandard(3)	3,094		8,814		22,976		23,937		17,845		67,654		10,107		154,427
Total	$	1,252,022	$	1,781,621	$	1,236,079	$	395,895	$	265,661	$	1,032,986	$	398,062	$	6,362,326
For the Three Months Ended September 30, 2022:
Current period charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
For the Nine Months Ended September 30, 2022:
Current period 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 December 31, 2022
	Year of Origination:
	2022		2021		2020		2019		2018		Prior		Revolving Loans - Amortized Cost Basis		Total
	(in thousands)
Agricultural Finance - Corporate AgFinance loans(1):
Internally Assigned Risk Rating:
Acceptable	$	145,263	$	299,729	$	221,560	$	108,230	$	76,454	$	44,827	$	232,107	$	1,128,170
Special mention(2)	—		—		—		20,698		—		—		2,145		22,843
Substandard(3)	—		—		4,598		—		—		—		10,642		15,240
Total	$	145,263	$	299,729	$	226,158	$	128,928	$	76,454	$	44,827	$	244,894	$	1,166,253
For the Three Months Ended September 30, 2022:
Current period charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
For the Nine Months Ended September 30, 2022:
Current period 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, 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	$	741,021	$	220,420	$	629,223	$	739,270	$	7,932	$	649,830	$	33,570	$	3,021,266
Special mention(2)	—		—		—		—		—		—		—		—
Substandard(3)	—		—		—		—		—		—		—		—
Total	$	741,021	$	220,420	$	629,223	$	739,270	$	7,932	$	649,830	$	33,570	$	3,021,266
For the Three Months Ended September 30, 2022:
Current period charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
For the Nine Months Ended September 30, 2022:
Current period 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 Infrastructure loans underlying LTSPCs and Farmer Mac Guaranteed Securities as of September 30, 2023 and December 31, 2022, by year of origination:

Table 6.8

	As of September 30, 2023
	Year of Origination:
	2023		2022		2021		2020		2019		Prior		Revolving Loans - Amortized Cost Basis		Total
	(in thousands)
Agricultural Finance:
Internally Assigned Risk Rating:
Acceptable	$	148,802	$	243,690	$	513,841	$	535,172	$	272,257	$	1,228,548	$	362,825	$	3,305,135
Special mention(1)	—		2,568		1,294		877		—		39,657		527		44,923
Substandard(2)	—		—		—		131		1,541		27,236		1,263		30,171
Total	$	148,802	$	246,258	$	515,135	$	536,180	$	273,798	$	1,295,441	$	364,615	$	3,380,229
For the Three Months Ended September 30, 2023:
Current period charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
For the Nine Months Ended September 30, 2023:
Current period 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, 2023
	Year of Origination:
	2023		2022		2021		2020		2019		Prior		Revolving Loans - Amortized Cost Basis		Total
	(in thousands)
Rural Infrastructure Finance:
Internally Assigned Risk Rating:
Acceptable	$	—	$	—	$	—	$	—	$	—	$	426,504	$	61,013	$	487,517
Special mention(1)	—		—		—		—		—		—		—		—
Substandard(2)	—		—		—		—		—		—		—		—
Total	$	—	$	—	$	—	$	—	$	—	$	426,504	$	61,013	$	487,517
For the Three Months Ended September 30, 2023:
Current period charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
For the Nine Months Ended September 30, 2023:
Current period 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, 2022
	Year of Origination:
	2022		2021		2020		2019		2018		Prior		Revolving Loans - Amortized Cost Basis		Total
	(in thousands)
Agricultural Finance:
Internally Assigned Risk Rating:
Acceptable	$	202,998	$	496,269	$	535,798	$	254,293	$	207,379	$	1,107,834	$	296,508	$	3,101,079
Special mention(1)	—		1,319		1,778		—		1,198		42,680		3,205		50,180
Substandard(2)	—		—		176		—		3,588		32,597		3,372		39,733
Total	$	202,998	$	497,588	$	537,752	$	254,293	$	212,165	$	1,183,111	$	303,085	$	3,190,992
For the Three Months Ended September 30, 2022:
Current period charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
For the Nine Months Ended September 30, 2022:
Current period 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, 2022
	Year of Origination:
	2022		2021		2020		2019		2018		Prior		Revolving Loans - Amortized Cost Basis		Total
	(in thousands)
Rural Infrastructure Finance:
Internally Assigned Risk Rating:
Acceptable	$	—	$	—	$	—	$	—	$	—	$	470,659	$	52,533	$	523,192
Special mention(1)	—		—		—		—		—		—		—		—
Substandard(2)	—		—		—		—		—		—		—		—
Total	$	—	$	—	$	—	$	—	$	—	$	470,659	$	52,533	$	523,192
For the Three Months Ended September 30, 2022:
Current period charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
For the Nine Months Ended September 30, 2022:
Current period 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.

XML

Notes Payable (Tables)

9 Months Ended

Sep. 30, 2023

Debt Disclosure [Abstract]

Schedule of Debt

The following tables set forth information related to Farmer Mac's borrowings as of September 30, 2023 and December 31, 2022:

Table 7.1

	September 30, 2023
	Outstanding as of September 30				Average Outstanding During the Quarter
	Amount		Weighted- Average Rate		Amount		Weighted- Average Rate
	(dollars in thousands)
Due within one year:
Discount notes	$	1,535,856	5.30	%	$	942,297	4.92	%
Medium-term notes	947,466		4.75	%	2,085,249		4.00	%
Current portion of medium-term notes	5,472,893		2.49	%
Total due within one year	$	7,956,215	3.30	%
Due after one year:
Medium-term notes due in:
Two years	$	5,231,168	3.05	%
Three years	3,243,230		2.21	%
Four years	3,297,724		2.64	%
Five years	2,306,430		4.07	%
Thereafter	3,567,720		2.80	%
Total due after one year	$	17,646,272	2.90	%
Total principal net of discounts	$	25,602,487	3.03	%
Hedging adjustments	(478,942)
Total	$	25,123,545

	December 31, 2022
	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	$	565,578	3.91	%	$	1,325,026	0.96	%
Medium-term notes	2,547,733		3.54	%	1,442,932		2.11	%
Current portion of medium-term notes	4,920,864		1.49	%
Total due within one year	$	8,034,175	2.31	%
Due after one year:
Medium-term notes due in:
Two years	$	4,072,740	1.71	%
Three years	3,506,480		2.10	%
Four years	2,967,625		1.44	%
Five years	2,361,197		3.12	%
Thereafter	4,057,982		2.60	%
Total due after one year	$	16,966,024	2.15	%
Total principal net of discounts	$	25,000,199	2.20	%
Hedging adjustments	(531,086)
Total	$	24,469,113

The following table summarizes by maturity date the amounts and costs for Farmer Mac debt callable in 2023 as of September 30, 2023:Table 7.2

Debt Callable in 2023 as of September 30, 2023, by Maturity
	Amount		Weighted-Average Rate
	(dollars in thousands)
Maturity:
2024	$	816,830	3.66	%
2025	664,046		2.33	%
2026	1,012,989		1.57	%
2027	560,204		2.27	%
Thereafter	1,161,379		2.51	%
Total	$	4,215,448	2.45	%

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, 2023, 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:
2023	$	5,468,108	4.57	%
2024	5,454,586		2.62	%
2025	4,222,333		2.60	%
2026	3,319,847		1.81	%
2027	2,573,406		3.14	%
Thereafter	4,564,207		2.87	%
Total principal net of discounts	$	25,602,487	3.03	%

XML

Fair Value Disclosures (Tables)

9 Months Ended

Sep. 30, 2023

Fair Value Disclosures [Abstract]

Schedule of 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, 2023 and December 31, 2022, 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, 2023
	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	$	—	$	—	$	19,033	$	19,033
Floating rate Government/GSE guaranteed mortgage-backed securities	—		2,465,545		—		2,465,545
Fixed rate GSE guaranteed mortgage-backed securities	—		1,386,378		—		1,386,378
Floating rate U.S. Treasuries	50,011		—		—		50,011
Fixed rate U.S. Treasuries	952,447		—		—		952,447
Total Available-for-sale Investment Securities	1,002,458		3,851,923		19,033		4,873,414
Farmer Mac Guaranteed Securities:
Available-for-sale:
AgVantage	—		—		5,048,708		5,048,708
Farmer Mac Guaranteed Securities	—		—		9,989		9,989
Total Farmer Mac Guaranteed Securities	—		—		5,058,697		5,058,697
USDA Securities:
Trading	—		—		1,302		1,302
Total USDA Securities	—		—		1,302		1,302
Financial derivatives	81		28,774		—		28,855
Guarantee Asset	—		—		5,963		5,963
Total Assets at fair value	$	1,002,539	$	3,880,697	$	5,084,995	$	9,968,231
Liabilities:
Financial derivatives	$	12	$	188,350	$	—	$	188,362
Total Liabilities at fair value	$	12	$	188,350	$	—	$	188,362

(1) Level 3 assets represent 18% of total assets and 50% of financial instruments measured at fair value.

Assets and Liabilities Measured at Fair Value as of December 31, 2022
	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	$	—	$	—	$	19,027	$	19,027
Floating rate Government/GSE guaranteed mortgage-backed securities	—		2,392,540		—		2,392,540
Fixed rate GSE guaranteed mortgage-backed securities	—		1,048,386		—		1,048,386
Fixed rate U.S. Treasuries	1,119,611		—		—		1,119,611
Total Available-for-sale Investment Securities	1,119,611		3,440,926		19,027		4,579,564
Farmer Mac Guaranteed Securities:
Available-for-sale:
AgVantage	—		—		7,599,379		7,599,379
Farmer Mac Guaranteed Securities	—		—		7,847		7,847
Total Farmer Mac Guaranteed Securities	—		—		7,607,226		7,607,226
USDA Securities:
Trading	—		—		1,767		1,767
Total USDA Securities	—		—		1,767		1,767
Financial derivatives	—		37,409		—		37,409
Guarantee Asset	—		—		4,467		4,467
Total Assets at fair value	$	1,119,611	$	3,478,335	$	7,632,487	$	12,230,433
Liabilities:
Financial derivatives	$	142	$	175,184	$	—	$	175,326
Total Liabilities at fair value	$	142	$	175,184	$	—	$	175,326

(1) Level 3 assets represent 28% of total assets and 62% of financial instruments measured at fair value.

Schedule of 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, 2023 and 2022.

Table 9.2

Level 3 Assets and Liabilities Measured at Fair Value for the Three Months Ended September 30, 2023
	Beginning Balance		Purchases		Settlements		Allowance for Losses		Realized and unrealized (losses)/gains included in Income		Unrealized gains included in Other Comprehensive Income		Transfers Out(1)		Ending Balance
	(in thousands)
Recurring:
Assets:
Investment Securities:
Available-for-sale:
Floating rate auction-rate certificates backed by Government guaranteed student loans	$	19,032	$	—	$	—	$	1	$	—	$	—	$	—	$	19,033
Total available-for-sale	19,032		—		—		1		—		—		—		19,033
Farmer Mac Guaranteed Securities:
Available-for-sale:
AgVantage	7,737,810		100,000		(6,875)		133		(107,917)		9,653		(2,684,096)		5,048,708
Farmer Mac Guaranteed Securities	7,605		—		(169)		—		—		2,553		—		9,989
Total available-for-sale	7,745,415		100,000		(7,044)		133		(107,917)		12,206		(2,684,096)		5,058,697
USDA Securities:
Trading	1,348		—		(44)		—		(2)		—		—		1,302
Total USDA Securities	1,348		—		(44)		—		(2)		—		—		1,302
Guarantee and commitment obligations:
Guarantee Asset	4,331		—		(84)		—		1,716		—		—		5,963
Total Guarantee and commitment obligations	4,331		—		(84)		—		1,716		—		—		5,963
Total Assets at fair value	$	7,770,126	$	100,000	$	(7,172)	$	134	$	(106,203)	$	12,206	$	(2,684,096)	$	5,084,995

(1) Includes $2.7 billion of AgVantage Securities transferred from available-for-sale to held-to-maturity on July 1, 2023.

Level 3 Assets and Liabilities Measured at Fair Value for the Three Months Ended September 30, 2022
	Beginning Balance		Purchases		Settlements		Allowance for Losses		Realized and unrealized 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	$	19,061	$	—	$	—	$	11	$	—	$	171	$	19,243
Total available-for-sale	19,061		—		—		11		—		171		19,243
Farmer Mac Guaranteed Securities:
Available-for-sale:
AgVantage	6,440,396		1,370,000		(627,131)		(11)		(204,450)		(13,043)		6,965,761
Farmer Mac Guaranteed Securities	9,816		—		(468)		—		—		(1,107)		8,241
Total available-for-sale	6,450,212		1,370,000		(627,599)		(11)		(204,450)		(14,150)		6,974,002
USDA Securities:
Trading	2,275		—		(383)		—		(41)		—		1,851
Total USDA Securities	2,275		—		(383)		—		(41)		—		1,851
Guarantee and commitment obligations:
Guarantee Asset	5,636		—		(229)		—		(715)		—		4,692
Total Guarantee and commitment obligations	5,636		—		(229)		—		(715)		—		4,692
Total Assets at fair value	$	6,477,184	$	1,370,000	$	(628,211)	$	—	$	(205,206)	$	(13,979)	$	6,999,788

Level 3 Assets and Liabilities Measured at Fair Value for the Nine Months Ended September 30, 2023
	Beginning Balance		Purchases		Settlements		Allowance for Losses		Realized and unrealized (losses)/gains included in Income		Unrealized gains included in Other Comprehensive Income		Transfers Out(1)		Ending Balance
	(in thousands)
Recurring:
Assets:
Investment Securities:
Available-for-sale:
Floating rate auction-rate certificates backed by Government guaranteed student loans	$	19,027	$	—	$	—	$	6	$	—	$	—	$	—	$	19,033
Total available-for-sale	19,027		—		—		6		—		—		—		19,033
Farmer Mac Guaranteed Securities:
Available-for-sale:
AgVantage	7,599,379		1,639,650		(1,405,674)		173		(116,447)		15,723		(2,684,096)		5,048,708
Farmer Mac Guaranteed Securities	7,847		—		(1,043)		—		—		3,185		—		9,989
Total available-for-sale	7,607,226		1,639,650		(1,406,717)		173		(116,447)		18,908		(2,684,096)		5,058,697
USDA Securities:
Trading	1,767		—		(479)		—		14		—		—		1,302
Total USDA Securities	1,767		—		(479)		—		14		—		—		1,302
Guarantee and commitment obligations:
Guarantee Asset	4,467		—		(506)		—		2,002		—		—		5,963
Total Guarantee and commitment obligations	4,467		—		(506)		—		2,002		—		—		5,963
Total Assets at fair value	$	7,632,487	$	1,639,650	$	(1,407,702)	$	179	$	(114,431)	$	18,908	$	(2,684,096)	$	5,084,995

(1) Includes $2.7 billion of AgVantage Securities transferred from available-for-sale to held-to-maturity on July 1, 2023.

Level 3 Assets and Liabilities Measured at Fair Value for the Nine Months Ended September 30, 2022
	Beginning Balance		Purchases		Settlements		Allowance for Losses		Realized and unrealized losses included in Income		Unrealized 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	$	19,254	$	—	$	—	$	14	$	—	$	(25)	$	19,243
Total available-for-sale	19,254		—		—		14		—		(25)		19,243
Farmer Mac Guaranteed Securities:
Available-for-sale:
AgVantage	6,316,145		2,722,750		(1,435,758)		(345)		(564,242)		(72,789)		6,965,761
Farmer Mac Guaranteed Securities	12,414		—		(1,205)		—		—		(2,968)		8,241
Total available-for-sale	6,328,559		2,722,750		(1,436,963)		(345)		(564,242)		(75,757)		6,974,002
USDA Securities:
Trading	4,401		—		(2,475)		—		(75)		—		1,851
Total USDA Securities	4,401		—		(2,475)		—		(75)		—		1,851
Guarantee and commitment obligations:
Guarantee Asset	6,237		—		(672)		—		(873)		—		4,692
Total Guarantee and commitment obligations	6,237		—		(672)		—		(873)		—		4,692
Total Assets at fair value	$	6,358,451	$	2,722,750	$	(1,440,110)	$	(331)	$	(565,190)	$	(75,782)	$	6,999,788

Schedule of 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, 2023 and December 31, 2022:

Table 9.3

	As of September 30, 2023
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	$	19,033	Indicative bids	Range of broker quotes	96.8% - 96.8% (96.8%)
Farmer Mac Guaranteed Securities:
AgVantage	$	5,048,708	Discounted cash flow	Discount rate	5.4% - 6.0% (5.7%)
Farmer Mac Guaranteed Securities	$	9,989	Discounted cash flow	Discount rate	8.5%
				CPR	3%
USDA Securities	$	1,302	Discounted cash flow	Discount rate	5.9% - 6.1% (6.0%)
				CPR	11% - 11% (11%)
Guarantee Asset	$	5,963	Discounted cash flow	Discount rate	8.5%
				CPR	3%

	As of December 31, 2022
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	$	19,027	Indicative bids	Range of broker quotes	96.8% - 96.8% (96.8%)
Farmer Mac Guaranteed Securities:
AgVantage	$	7,599,379	Discounted cash flow	Discount rate	4.7% - 6.1% (5.1%)
Farmer Mac Guaranteed Securities	$	7,847	Discounted cash flow	Discount rate	4.8% - 5.3% (5.1%)
				CPR	8%
USDA Securities	$	1,767	Discounted cash flow	Discount rate	5.1% - 5.7% (5.3%)
				CPR	19% - 27% (25%)
Guarantee Asset	$	4,467	Discounted cash flow	Discount rate	5.4% - 5.9% (5.7%)
				CPR	8%

Schedule of 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, 2023 and December 31, 2022:

Table 9.4

	As of September 30, 2023				As of December 31, 2022
	Fair Value		Carrying Amount		Fair Value		Carrying Amount
	(in thousands)
Financial assets:
Cash and cash equivalents	$	782,318	$	782,318	$	861,002	$	861,002
Investment securities	4,925,183		4,924,253		4,630,701		4,628,268
Farmer Mac Guaranteed Securities	9,170,053		9,216,111		8,573,781		8,628,380
USDA Securities	1,933,529		2,323,657		2,099,445		2,411,601
Loans	9,718,846		10,537,173		9,666,710		10,205,466
Financial derivatives	28,855		28,855		37,409		37,409
Guarantee and commitment fees receivable	58,819		49,809		50,653		47,151
Financial liabilities:
Notes payable	24,224,819		25,123,545		23,591,330		24,469,113
Debt securities of consolidated trusts held by third parties	1,209,757		1,334,014		1,106,837		1,181,948
Financial derivatives	188,362		188,362		175,326		175,326
Guarantee and commitment obligations	56,617		47,607		50,083		46,582

XML

Business Segment Reporting (Tables)

9 Months Ended

Sep. 30, 2023

Segment Reporting [Abstract]

Schedule of Segment Reporting Information, by Segment

The following tables present core earnings for Farmer Mac's segments and a reconciliation to consolidated net income for the three and nine months ended September 30, 2023 and 2022.

Table 10.1

Core Earnings by Business Segment
For the Three Months Ended September 30, 2023
	Agricultural Finance				Rural Infrastructure				Treasury				Corporate
	Farm & Ranch		Corporate AgFinance		Rural  Utilities		Renewable Energy		Funding		Investments				Reconciling Adjustments			Consolidated Net Income
	(in thousands)
Net interest income	$	33,735	$	8,250	$	6,393	$	1,150	$	37,642	$	473	$	—	$	—		$	87,643
Less: reconciling adjustments(1)(2)(3)	(1,017)		—		(31)		—		(3,230)		59		—		4,219			—
Net effective spread	32,718		8,250		6,362		1,150		34,412		532		—		4,219			—
Guarantee and commitment fees	4,447		78		279		24		—		—		—		692			5,520
Other income/(expense)(3)	807		—		—		—		3		6		240		2,884			3,940
Total revenues	37,972		8,328		6,641		1,174		34,415		538		240		7,795			97,103
Release of/(provision for) losses	13		3,694		(3,504)		(66)		—		(1)		—		—			136
Release of/(provision for) reserve for losses	58		—		(13)		—		—		—		—		—			45
Operating expenses	—		—		—		—		—		—		(24,034)		—			(24,034)
Total non-interest expense	58		—		(13)		—		—		—		(24,034)		—			(23,989)
Core earnings before income taxes	38,043		12,022		3,124		1,108		34,415		537		(23,794)		7,795		(4)	73,250
Income tax (expense)/benefit	(7,989)		(2,525)		(656)		(233)		(7,226)		(113)		5,267		(1,638)			(15,113)
Core earnings before preferred stock dividends	30,054		9,497		2,468		875		27,189		424		(18,527)		6,157		(4)	58,137
Preferred stock dividends	—		—		—		—		—		—		(6,792)		—			(6,792)
Segment core earnings/(losses)	$	30,054	$	9,497	$	2,468	$	875	$	27,189	$	424	$	(25,319)	$	6,157	(4)	$	51,345
Total Assets	$	14,660,371	$	1,619,664	$	6,648,693	$	320,572	$	—	$	4,866,969	$	195,112	$	—		$	28,311,381
Total on- and off-balance sheet program assets at principal balance	$	18,461,835	$	1,741,306	$	7,118,295	$	330,575	$	—	$	—	$	—	$	—		$	27,652,011

(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 "Gains on financial derivatives" on the consolidated financial statements, to determine the effective funding cost for each operating segment.

(4)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, 2022
	Agricultural Finance				Rural Infrastructure				Treasury				Corporate
	Farm & Ranch		Corporate AgFinance		Rural  Utilities		Renewable Energy		Funding		Investments				Reconciling Adjustments			Consolidated Net Income
	(in thousands)
Net interest income	$	34,173	$	7,600	$	4,253	$	705	$	23,913	$	(2,791)	$	—	$	—		$	67,853
Less: reconciling adjustments(1)(2)(3)	(830)		—		(33)		—		(1,349)		—		—		2,212			—
Net effective spread	33,343		7,600		4,220		705		22,564		(2,791)		—		2,212			—
Guarantee and commitment fees	3,833		46		309		13		—		—		—		(1,558)			2,643
Other income/(expense)(3)	469		4		—		—		—		—		—		909			1,382
Total revenues	37,645		7,650		4,529		718		22,564		(2,791)		—		1,563			71,878
Release of/(provision for) losses	93		(333)		(414)		26		—		11		—		—			(617)
Release of reserve for losses	139		—		28		—		—		—		—		—			167
Operating expenses	—		—		—		—		—		—		(19,379)		—			(19,379)
Total non-interest expense	139		—		28		—		—		—		(19,379)		—			(19,212)
Core earnings before income taxes	37,877		7,317		4,143		744		22,564		(2,780)		(19,379)		1,563		(4)	52,049
Income tax (expense)/benefit	(7,953)		(1,536)		(869)		(156)		(4,739)		584		4,366		(328)			(10,631)
Core earnings before preferred stock dividends	29,924		5,781		3,274		588		17,825		(2,196)		(15,013)		1,235		(4)	41,418
Preferred stock dividends	—		—		—		—		—		—		(6,791)		—			(6,791)
Segment core earnings/(losses)	$	29,924	$	5,781	$	3,274	$	588	$	17,825	$	(2,196)	$	(21,804)	$	1,235	(4)	$	34,627
Total Assets	$	14,113,686	$	1,558,139	$	5,779,300	$	186,832	$	—	$	4,608,868	$	194,763	$	—		$	26,441,588
Total on- and off-balance sheet program assets at principal balance	$	17,199,347	$	1,634,786	$	6,296,263	$	196,242	$	—	$	—	$	—	$	—		$	25,326,638

(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 "Gains on financial derivatives" on the consolidated financial statements, to determine the effective funding cost for each operating segment.

(4)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, 2023
	Agricultural Finance				Rural Infrastructure				Treasury				Corporate
	Farm & Ranch		Corporate AgFinance		Rural  Utilities		Renewable Energy		Funding		Investments				Reconciling Adjustments			Consolidated Net Income
	(in thousands)
Net interest income	$	102,671	$	22,842	$	17,772	$	3,108	$	98,588	$	397	$	—	$	—		$	245,378
Less: reconciling adjustments(1)(2)(3)	(3,100)		—		(95)		—		60		186		—		2,949			—
Net effective spread	99,571		22,842		17,677		3,108		98,648		583		—		2,949			—
Guarantee and commitment fees	12,960		193		841		69		—		—		—		(1,121)			12,942
Other income/(expense)(3)	2,216		12		—		—		3		17		284		5,484			8,016
Total revenues	114,747		23,047		18,518		3,177		98,651		600		284		7,312			266,336
Release of/(provision for) losses	136		(934)		(652)		(38)		—		4		—		—			(1,484)
(Provision for)/release of reserve for losses	(594)		—		367		—		—		—		—		—			(227)
Operating expenses	—		—		—		—		—		—		(71,935)		—			(71,935)
Total non-interest expense	(594)		—		367		—		—		—		(71,935)		—			(72,162)
Core earnings before income taxes	114,289		22,113		18,233		3,139		98,651		604		(71,651)		7,312		(4)	192,690
Income tax (expense)/benefit	(24,001)		(4,644)		(3,829)		(659)		(20,716)		(127)		15,206		(1,536)			(40,306)
Core earnings before preferred stock dividends	90,288		17,469		14,404		2,480		77,935		477		(56,445)		5,776		(4)	152,384
Preferred stock dividends	—		—		—		—		—		—		(20,374)		—			(20,374)
Segment core earnings/(losses)	$	90,288	$	17,469	$	14,404	$	2,480	$	77,935	$	477	$	(76,819)	$	5,776	(4)	$	132,010
Total Assets	$	14,660,371	$	1,619,664	$	6,648,693	$	320,572	$	—	$	4,866,969	$	195,112	$	—		$	28,311,381
Total on- and off-balance sheet program assets at principal balance	$	18,461,835	$	1,741,306	$	7,118,295	$	330,575	$	—	$	—	$	—	$	—		$	27,652,011

(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 "Gains on financial derivatives" on the consolidated financial statements, to determine the effective funding cost for each operating segment.

(4)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, 2022
	Agricultural Finance				Rural Infrastructure				Treasury				Corporate
	Farm & Ranch		Corporate AgFinance		Rural  Utilities		Renewable Energy		Funding		Investments				Reconciling Adjustments			Consolidated Net Income
	(in thousands)
Net interest income	$	99,197	$	21,738	$	11,218	$	1,548	$	67,673	$	(4,069)	$	—	$	—		$	197,305
Less: reconciling adjustments(1)(2)(3)	(2,910)		—		(106)		—		(9,863)		—		—		12,879			—
Net effective spread	96,287		21,738		11,112		1,548		57,810		(4,069)		—		12,879			—
Guarantee and commitment fees	12,387		108		929		43		—		—		—		(3,916)			9,551
Other income/(expense)(3)	1,030		261		—		—		—		—		3		21,987			23,281
Total revenues	109,704		22,107		12,041		1,591		57,810		(4,069)		3		30,950			230,137
Release of/(provision for) losses	440		(1,498)		1,927		(184)		—		14		—		—			699
Release of reserve for losses	324		—		116		—		—		—		—		—			440
Operating expenses	—		—		—		—		—		—		(60,815)		—			(60,815)
Total non-interest expense	324		—		116		—		—		—		(60,815)		—			(60,375)
Core earnings before income taxes	110,468		20,609		14,084		1,407		57,810		(4,055)		(60,812)		30,950		(4)	170,461
Income tax (expense)/benefit	(23,196)		(4,327)		(2,956)		(295)		(12,141)		852		12,827		(6,499)			(35,735)
Core earnings before preferred stock dividends	87,272		16,282		11,128		1,112		45,669		(3,203)		(47,985)		24,451		(4)	134,726
Preferred stock dividends	—		—		—		—		—		—		(20,374)		—			(20,374)
Segment core earnings/(losses)	$	87,272	$	16,282	$	11,128	$	1,112	$	45,669	$	(3,203)	$	(68,359)	$	24,451	(4)	$	114,352
Total Assets	$	14,113,686	$	1,558,139	$	5,779,300	$	186,832	$	—	$	4,608,868	$	194,763	$	—		$	26,441,588
Total on- and off-balance sheet program assets at principal balance	$	17,199,347	$	1,634,786	$	6,296,263	$	196,242	$	—	$	—	$	—	$	—		$	25,326,638

(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 "Gains on financial derivatives" on the consolidated financial statements, to determine the effective funding cost for each operating segment.

(4)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 - Narrative (Details)	Sep. 30, 2023 subsidiary
Accounting Policies [Abstract]
Number of subsidiaries	2

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Summary of Significant Accounting Policies - Consolidation of Variable Interest Entities (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Variable Interest Entity [Line Items]
Loans held for investment in consolidated trusts, at amortized cost	$ 9,130,933	$ 9,008,979
Debt securities of consolidated trusts held by third parties	25,602,487	25,000,199
Farmer Mac Guaranteed Securities:
Variable Interest Entity [Line Items]
Carrying value	5,058,697	7,607,226
Investment securities:
Variable Interest Entity [Line Items]
Carrying value	4,873,414	4,579,564
Agricultural Finance
Variable Interest Entity [Line Items]
Borrower remittances	400	8,100
Unamortized discount	89,200	37,700
Consolidated VIE | On-balance sheet
Variable Interest Entity [Line Items]
Loans held for investment in consolidated trusts, at amortized cost	1,422,854	1,211,576
Debt securities of consolidated trusts held by third parties	1,334,014	1,181,948
Consolidated VIE | Operating Segments | On-balance sheet | Agricultural Finance
Variable Interest Entity [Line Items]
Loans held for investment in consolidated trusts, at amortized cost	1,422,854	1,211,576
Debt securities of consolidated trusts held by third parties	1,334,014	1,181,948
Consolidated VIE | Corporate, Non-Segment | On-balance sheet
Variable Interest Entity [Line Items]
Loans held for investment in consolidated trusts, at amortized cost	0	0
Debt securities of consolidated trusts held by third parties	0	0
Unconsolidated VIE | On-balance sheet | Farmer Mac Guaranteed Securities:
Variable Interest Entity [Line Items]
Carrying value	39,131	28,466
Maximum exposure to loss	38,689	31,208
Unconsolidated VIE | On-balance sheet | Investment securities:
Variable Interest Entity [Line Items]
Carrying value	3,532,286	3,138,619
Maximum exposure to loss	3,809,871	3,341,427
Unconsolidated VIE | Off-balance sheet
Variable Interest Entity [Line Items]
Maximum exposure to loss	455,681	500,953
Unconsolidated VIE | Operating Segments | On-balance sheet | Agricultural Finance | Farmer Mac Guaranteed Securities:
Variable Interest Entity [Line Items]
Carrying value	39,131	28,466
Maximum exposure to loss	38,689	31,208
Unconsolidated VIE | Operating Segments | On-balance sheet | Agricultural Finance | Investment securities:
Variable Interest Entity [Line Items]
Carrying value	0	0
Maximum exposure to loss	0	0
Unconsolidated VIE | Operating Segments | Off-balance sheet | Agricultural Finance
Variable Interest Entity [Line Items]
Maximum exposure to loss	455,681	500,953
Unconsolidated VIE | Corporate, Non-Segment | On-balance sheet | Farmer Mac Guaranteed Securities:
Variable Interest Entity [Line Items]
Carrying value	0	0
Maximum exposure to loss	0	0
Unconsolidated VIE | Corporate, Non-Segment | On-balance sheet | Investment securities:
Variable Interest Entity [Line Items]
Carrying value	3,532,286	3,138,619
Maximum exposure to loss	3,809,871	3,341,427
Unconsolidated VIE | Corporate, Non-Segment | Off-balance sheet
Variable Interest Entity [Line Items]
Maximum exposure to loss	$ 0	$ 0

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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, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Basic EPS
Net income attributable to common stockholders	$ 51,345	$ 34,627	$ 132,010	$ 114,352
Weighted-Average Shares (in shares)	10,839,000	10,799,000	10,825,000	10,787,000
Basic EPS (in dollars per share)	$ 4.74	$ 3.21	$ 12.20	$ 10.61
Effect of dilutive securities
SARs and restricted stock (in shares)	99,000	75,000	99,000	88,000
SARs and restricted stock (in dollars per share)	$ (0.05)	$ (0.03)	$ (0.12)	$ (0.10)
Net income, Diluted EPS	$ 51,345	$ 34,627	$ 132,010	$ 114,352
Weighted-Average Shares, Diluted EPS (in shares)	10,938,000	10,874,000	10,924,000	10,875,000
Diluted EPS (in dollars per share)	$ 4.69	$ 3.18	$ 12.08	$ 10.51
Stock Appreciation Rights and Restricted Stock
Effect of dilutive securities
Antidilutive securities excluded from earnings per share (in shares)	16,761	18,432	37,990	37,120
Performance Shares
Effect of dilutive securities
Antidilutive securities excluded from earnings per share (in shares)	32,469	18,535	32,407	18,535

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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, 2023	Jun. 30, 2023	Mar. 31, 2023	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Sep. 30, 2023	Sep. 30, 2022
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	$ 1,346,555	$ 1,292,385	$ 1,271,958	$ 1,221,210	$ 1,205,747	$ 1,213,700	$ 1,271,958	$ 1,213,700
Other comprehensive income/(loss) before reclassifications	2,620			(12,764)			27,484	(69,261)
Amounts reclassified from AOCI	(4,108)			(1,341)			(12,480)	1,819
Other comprehensive (loss)/income net of tax	(1,488)	25,511	(9,019)	(14,105)	(9,819)	(43,518)	15,004	(67,442)
Ending balance	1,385,267	1,346,555	1,292,385	1,232,023	1,221,210	1,205,747	1,385,267	1,232,023
AOCI, Accumulated Gain (Loss), Debt Securities, Available-for-sale, Including Noncontrolling Interest | Available-for-Sale Securities
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	(96,607)		(115,561)	(98,924)		(6,932)	(115,561)	(6,932)
Other comprehensive income/(loss) before reclassifications	17,443			(33,041)			36,406	(125,027)
Amounts reclassified from AOCI	(4)			(2)			(13)	(8)
Other comprehensive (loss)/income net of tax	17,439			(33,043)			36,393	(125,035)
Ending balance	(79,168)	(96,607)		(131,967)	(98,924)		(79,168)	(131,967)
AOCI, Accumulated Gain (Loss), Debt Securities, Available-for-sale, Including Noncontrolling Interest | Held-to-Maturity Securities
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	15,486		16,357	16,818		16,153	16,357	16,153
Other comprehensive income/(loss) before reclassifications	(25,199)			0			(25,199)	0
Amounts reclassified from AOCI	294			(492)			(577)	173
Other comprehensive (loss)/income net of tax	(24,905)			(492)			(25,776)	173
Ending balance	(9,419)	15,486		16,326	16,818		(9,419)	16,326
Cash Flow Hedges
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	46,770		48,361	32,622		(5,368)	48,361	(5,368)
Other comprehensive income/(loss) before reclassifications	10,376			20,277			16,277	55,766
Amounts reclassified from AOCI	(4,398)			(847)			(11,890)	1,654
Other comprehensive (loss)/income net of tax	5,978			19,430			4,387	57,420
Ending balance	52,748	46,770		52,052	32,622		52,748	52,052
Accumulated Other Comprehensive Income (Loss)
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	(34,351)	(59,862)	(50,843)	(49,484)	(39,665)	3,853	(50,843)	3,853
Other comprehensive (loss)/income net of tax	(1,488)	25,511	(9,019)	(14,105)	(9,819)	(43,518)
Ending balance	$ (35,839)	$ (34,351)	$ (59,862)	$ (63,589)	$ (49,484)	$ (39,665)	$ (35,839)	$ (63,589)

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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, 2023	Jun. 30, 2023	Mar. 31, 2023	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Sep. 30, 2023	Sep. 30, 2022
Other comprehensive income/(loss):
Other comprehensive (loss)/income before tax	$ (1,883)			$ (17,853)			$ 18,993	$ (85,369)
Other Comprehensive Income (Loss), Tax [Abstract]
Other comprehensive income/(loss), Provision (Benefit)	(395)			(3,748)			3,989	(17,927)
Other Comprehensive Income (Loss), Net of Tax [Abstract]
Unrealized gains/(losses), After Tax	2,620			(12,764)			27,484	(69,261)
Less reclassification adjustments, Provision (Benefit)	(4,108)			(1,341)			(12,480)	1,819
Other comprehensive (loss)/income net of tax	(1,488)	$ 25,511	$ (9,019)	(14,105)	$ (9,819)	$ (43,518)	15,004	(67,442)
Securities | Available-for-Sale Securities
Other comprehensive income/(loss):
Unrealized gain/(losses), Before Tax	22,081			(41,824)			46,084	(158,263)
Other comprehensive (loss)/income before tax	22,076			(41,827)			46,068	(158,273)
Other Comprehensive Income (Loss), Tax [Abstract]
Unrealized gains/(losses), Provision (Benefit)	4,638			(8,783)			9,678	(33,236)
Other comprehensive income/(loss), Provision (Benefit)	4,637			(8,784)			9,675	(33,238)
Other Comprehensive Income (Loss), Net of Tax [Abstract]
Unrealized gains/(losses), After Tax	17,443			(33,041)			36,406	(125,027)
Other comprehensive (loss)/income net of tax	17,439			(33,043)			36,393	(125,035)
Securities | Held-to-Maturity Securities
Other comprehensive income/(loss):
Unrealized gain/(losses), Before Tax	(31,898)			0			(31,898)	0
Less reclassification adjustments, Before Tax	373			(622)			(730)	220
Other comprehensive (loss)/income before tax	(31,525)			(622)			(32,628)	220
Other Comprehensive Income (Loss), Tax [Abstract]
Unrealized gains/(losses), Provision (Benefit)	(6,699)			0			(6,699)	0
Less reclassification adjustments, Provision (Benefit)	79			(130)			(153)	47
Other comprehensive income/(loss), Provision (Benefit)	(6,620)			(130)			(6,852)	47
Other Comprehensive Income (Loss), Net of Tax [Abstract]
Unrealized gains/(losses), After Tax	(25,199)			0			(25,199)	0
Less reclassification adjustments, Provision (Benefit)	294			(492)			(577)	173
Other comprehensive (loss)/income net of tax	(24,905)			(492)			(25,776)	173
Securities | Net interest income | Available-for-Sale Securities
Other comprehensive income/(loss):
Less reclassification adjustments, Before Tax	0			0			0	0
Other Comprehensive Income (Loss), Tax [Abstract]
Less reclassification adjustments, Provision (Benefit)	0			0			0	0
Other Comprehensive Income (Loss), Net of Tax [Abstract]
Less reclassification adjustments, Provision (Benefit)	0			0			0	0
Securities | Other income | Available-for-Sale Securities
Other comprehensive income/(loss):
Less reclassification adjustments, Before Tax	(5)			(3)			(16)	(10)
Other Comprehensive Income (Loss), Tax [Abstract]
Less reclassification adjustments, Provision (Benefit)	(1)			(1)			(3)	(2)
Other Comprehensive Income (Loss), Net of Tax [Abstract]
Less reclassification adjustments, Provision (Benefit)	(4)			(2)			(13)	(8)
Cash Flow Hedges
Other comprehensive income/(loss):
Unrealized gain/(losses), Before Tax	13,135			25,668			20,604	70,590
Less reclassification adjustments, Before Tax	(5,569)			(1,072)			(15,051)	2,094
Other comprehensive (loss)/income before tax	7,566			24,596			5,553	72,684
Other Comprehensive Income (Loss), Tax [Abstract]
Unrealized gains/(losses), Provision (Benefit)	2,759			5,391			4,327	14,824
Less reclassification adjustments, Provision (Benefit)	(1,171)			(225)			(3,161)	440
Other comprehensive income/(loss), Provision (Benefit)	1,588			5,166			1,166	15,264
Other Comprehensive Income (Loss), Net of Tax [Abstract]
Unrealized gains/(losses), After Tax	10,376			20,277			16,277	55,766
Less reclassification adjustments, Provision (Benefit)	(4,398)			(847)			(11,890)	1,654
Other comprehensive (loss)/income net of tax	5,978			19,430			4,387	57,420
AOCI Attributable to Parent
Other comprehensive income/(loss):
Other comprehensive (loss)/income before tax	(1,883)			(17,853)			18,993	(85,369)
Other Comprehensive Income (Loss), Tax [Abstract]
Other comprehensive income/(loss), Provision (Benefit)	(395)			(3,748)			3,989	(17,927)
Other Comprehensive Income (Loss), Net of Tax [Abstract]
Other comprehensive (loss)/income net of tax	$ (1,488)			$ (14,105)			$ 15,004	$ (67,442)

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Investment Securities - Schedule of Investment Securities (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Investment securities:
Available-for-sale:
Amount Outstanding	$ 5,177,029	$ 4,806,727
Unamortized Premium/(Discount)	0	0
Amortized cost	5,114,476	4,769,426
Allowance for losses	(27)	(33)
Unrealized Gains	2,088	4,703
Unrealized Losses	(243,123)	(194,532)
Fair Value	4,873,414	4,579,564
Held-to-maturity:
Amount Outstanding	45,032	45,032
Unamortized Premium/(Discount)	0	0
Amortized Cost	45,032	45,032
Allowance for losses	0	0
Unrealized Gains	930	2,433
Unrealized Losses	0	0
Fair Value	45,962	47,465
Available-for-sale, accrued interest excluded	17,400	10,600
Available-for-Sale Securities | Investment securities:
Available-for-sale:
Unamortized Premium/(Discount)	(62,553)	(37,301)
Held-to-maturity:
Unamortized Premium/(Discount)	(62,553)	(37,301)
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	19,700	19,700
Allowance for losses	(27)	(33)
Unrealized Gains	0	0
Unrealized Losses	(640)	(640)
Fair Value	19,033	19,027
Floating Interest Rate | Guaranteed mortgage-backed securities
Available-for-sale:
Amount Outstanding	2,499,578	2,433,696
Amortized cost	2,498,408	2,433,496
Allowance for losses	0	0
Unrealized Gains	2,054	1,954
Unrealized Losses	(34,917)	(42,910)
Fair Value	2,465,545	2,392,540
Floating Interest Rate | Fixed rate U.S. Treasuries
Available-for-sale:
Amount Outstanding	50,000
Amortized cost	49,977
Allowance for losses	0
Unrealized Gains	34
Unrealized Losses	0
Fair Value	50,011
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
Floating Interest Rate | Available-for-Sale Securities | Guaranteed mortgage-backed securities
Available-for-sale:
Unamortized Premium/(Discount)	(1,170)	(200)
Held-to-maturity:
Unamortized Premium/(Discount)	(1,170)	(200)
Floating Interest Rate | Available-for-Sale Securities | Fixed rate U.S. Treasuries
Available-for-sale:
Unamortized Premium/(Discount)	(23)
Held-to-maturity:
Unamortized Premium/(Discount)	(23)
Fixed Interest Rate | Guaranteed mortgage-backed securities
Available-for-sale:
Amount Outstanding	1,629,166	1,207,416
Amortized cost	1,584,048	1,177,095
Allowance for losses	0	0
Unrealized Gains	0	2,128
Unrealized Losses	(197,670)	(130,837)
Fair Value	1,386,378	1,048,386
Held-to-maturity:
Amount Outstanding	45,032	45,032
Amortized Cost	45,032	45,032
Allowance for losses	0	0
Unrealized Gains	930	2,433
Unrealized Losses	0	0
Fair Value	$ 45,962	$ 47,465
Held-to-maturity investment securities weighted average yield	6.50%	4.50%
Fixed Interest Rate | Fixed rate U.S. Treasuries
Available-for-sale:
Amount Outstanding	$ 978,585	$ 1,145,915
Amortized cost	962,343	1,139,135
Allowance for losses	0	0
Unrealized Gains	0	621
Unrealized Losses	(9,896)	(20,145)
Fair Value	952,447	1,119,611
Fixed Interest Rate | Available-for-Sale Securities | Guaranteed mortgage-backed securities
Available-for-sale:
Unamortized Premium/(Discount)	(45,118)	(30,321)
Held-to-maturity:
Unamortized Premium/(Discount)	(45,118)	(30,321)
Fixed Interest Rate | Available-for-Sale Securities | Fixed rate U.S. Treasuries
Available-for-sale:
Unamortized Premium/(Discount)	(16,242)	(6,780)
Held-to-maturity:
Unamortized Premium/(Discount)	(16,242)	(6,780)
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

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Investment Securities - Narrative (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Debt Securities, Available-for-sale [Line Items]
Proceeds from sale of available-for-sale investment securities	$ 0	$ 0	$ 0	$ 0
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	92.70%		92.70%

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Investment Securities - Unrealized Loss Position (Details) $ in Thousands	Sep. 30, 2023 USD ($) security	Dec. 31, 2022 USD ($) security
Debt Securities, Available-for-sale [Line Items]
Unrealized loss position for less than 12 months, Fair Value	$ 1,774,155	$ 2,819,885
Unrealized loss position for less than 12 months, Unrealized Loss	(38,277)	(96,252)
Unrealized loss position for more than 12 months, Fair Value	2,599,418	1,254,553
Unrealized loss position for more than 12 months, Unrealized Loss	$ (204,846)	$ (98,280)
Investment securities:
Debt Securities, Available-for-sale [Line Items]
Unrealized loss position for less than 12 months, Number of securities in loss position | security	85	174
Unrealized loss position for more than 12 months, Number of securities in loss position | security	170	51
Floating Interest Rate | Floating rate auction-rate certificates backed by Government guaranteed student loans
Debt Securities, Available-for-sale [Line Items]
Unrealized loss position for less than 12 months, Fair Value	$ 0	$ 0
Unrealized loss position for less than 12 months, Unrealized Loss	0	0
Unrealized loss position for more than 12 months, Fair Value	19,033	19,027
Unrealized loss position for more than 12 months, Unrealized Loss	(640)	(640)
Floating Interest Rate | Guaranteed mortgage-backed securities
Debt Securities, Available-for-sale [Line Items]
Unrealized loss position for less than 12 months, Fair Value	583,799	1,884,146
Unrealized loss position for less than 12 months, Unrealized Loss	(4,076)	(36,976)
Unrealized loss position for more than 12 months, Fair Value	1,431,925	193,964
Unrealized loss position for more than 12 months, Unrealized Loss	(30,841)	(5,934)
Fixed Interest Rate | Guaranteed mortgage-backed securities
Debt Securities, Available-for-sale [Line Items]
Unrealized loss position for less than 12 months, Fair Value	535,288	621,215
Unrealized loss position for less than 12 months, Unrealized Loss	(29,649)	(56,434)
Unrealized loss position for more than 12 months, Fair Value	851,082	336,782
Unrealized loss position for more than 12 months, Unrealized Loss	(168,021)	(74,403)
Fixed Interest Rate | Fixed rate U.S. Treasuries
Debt Securities, Available-for-sale [Line Items]
Unrealized loss position for less than 12 months, Fair Value	655,068	314,524
Unrealized loss position for less than 12 months, Unrealized Loss	(4,552)	(2,842)
Unrealized loss position for more than 12 months, Fair Value	297,378	704,780
Unrealized loss position for more than 12 months, Unrealized Loss	$ (5,344)	$ (17,303)

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Investment Securities - Debt Maturities (Details) - Investment securities: - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Amortized Cost
Due within one year	$ 589,475
Due after one year through five years	1,171,601
Due after five years through ten years	2,534,914
Due after ten years	818,486
Available-for-sale, Amortized Cost	5,114,476	$ 4,769,426
Fair Value
Due within one year	584,714
Due after one year through five years	1,135,888
Due after five years through ten years	2,358,496
Due after ten years	794,316
Total, Fair Value	$ 4,873,414	$ 4,579,564
Weighted- Average Yield
Due within one year	1.35%
Due after one year through five years	4.06%
Due after five years through ten years	4.39%
Due after ten years	5.61%
Total, Weighted-Average Yield	4.16%

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Farmer Mac Guaranteed Securities and USDA Securities - Schedule of On-Balance Sheet Securities (Details) - USD ($) $ in Thousands		9 Months Ended
	Dec. 31, 2022	Sep. 30, 2023
Trading:
Debt Securities, Available-for-Sale, Accrued Interest, after Allowance for Credit Loss, Statement of Financial Position [Extensible Enumeration]	Accrued interest receivable (includes $10,666 and $12,514, respectively, related to consolidated trusts)	Accrued interest receivable (includes $10,666 and $12,514, respectively, related to consolidated trusts)
Farmer Mac Guaranteed Securities
Held-to-maturity:
Unpaid Principal Balance	$ 1,021,275	$ 4,187,966
Amortized Cost	1,021,213	4,157,610
Allowance for losses	(59)	(196)
Unrealized Gains	355	4,525
Unrealized Losses	(54,954)	(50,583)
Fair Value	966,555	4,111,356
Available-for-sale:
Amortized cost		5,536,437
Fair Value		5,058,697
USDA Securities
Held-to-maturity:
Unpaid Principal Balance	2,384,946	2,299,407
Amortized Cost	2,409,834	2,322,355
Allowance for losses	0	0
Unrealized Gains	668	194
Unrealized Losses	(312,824)	(390,322)
Fair Value	2,097,678	1,932,227
Trading:
Unpaid Principal Balance	1,770	1,314
Amortized Cost	1,850	1,371
Allowance for losses	0	0
Unrealized Gains	0	0
Unrealized Losses	(83)	(69)
Fair Value	$ 1,767	1,302
Trading securities, weighted-average yield	4.84%
Farmer Mac Guaranteed Securities and USDA Securities
Held-to-maturity:
Unpaid Principal Balance	$ 3,406,221	6,487,373
Amortized Cost	3,431,047	6,479,965
Allowance for losses	(59)	(196)
Unrealized Gains	1,023	4,719
Unrealized Losses	(367,778)	(440,905)
Fair Value	3,064,233	6,043,583
Farmer Mac Guaranteed Securities:
Held-to-maturity:
Amortized Cost	1,021,154	4,157,414
Available-for-sale:
Unpaid Principal Balance	8,008,067	5,526,857
Amortized cost	8,019,495	5,536,437
Allowance for losses	(546)	(374)
Unrealized Gains	2,061	409
Unrealized Losses	(413,784)	(477,775)
Fair Value	7,607,226	5,058,697
Held-to-Maturity Securities | Farmer Mac Guaranteed Securities
Held-to-maturity:
Unamortized Premium/(Discount)	(62)	(30,356)
Available-for-sale:
Unamortized Premium/(Discount)	(62)	(30,356)
Trading:
Unamortized Premium/(Discount)	(62)	(30,356)
Held-to-Maturity Securities | USDA Securities
Held-to-maturity:
Unamortized Premium/(Discount)	24,888	22,948
Available-for-sale:
Unamortized Premium/(Discount)	24,888	22,948
Trading:
Unamortized Premium/(Discount)	24,888	22,948
Held-to-Maturity Securities | Farmer Mac Guaranteed Securities and USDA Securities
Held-to-maturity:
Unamortized Premium/(Discount)	24,826	(7,408)
Available-for-sale:
Unamortized Premium/(Discount)	24,826	(7,408)
Trading:
Unamortized Premium/(Discount)	24,826	(7,408)
Available-for-Sale Securities | Farmer Mac Guaranteed Securities:
Held-to-maturity:
Unamortized Premium/(Discount)	11,428	9,580
Available-for-sale:
Unamortized Premium/(Discount)	11,428	9,580
Trading:
Unamortized Premium/(Discount)	11,428	9,580
Debt Securities, Trading | USDA Securities
Held-to-maturity:
Unamortized Premium/(Discount)	80	57
Available-for-sale:
Unamortized Premium/(Discount)	80	57
Trading:
Unamortized Premium/(Discount)	80	57
Farmer Mac Guaranteed Securities | Farmer Mac Guaranteed Securities
Available-for-sale:
Fair Value	7,800	10,000
Trading:
Derivative, notional amount	250,100	239,100
Farmer Mac Guaranteed Securities | Farmer Mac Guaranteed Securities:
Available-for-sale:
Unpaid Principal Balance	0	0
Amortized cost	10,622	9,580
Allowance for losses	0	0
Unrealized Gains	0	409
Unrealized Losses	(2,775)	0
Fair Value	7,847	9,989
Farmer Mac Guaranteed Securities | Available-for-Sale Securities | Farmer Mac Guaranteed Securities:
Held-to-maturity:
Unamortized Premium/(Discount)	10,622	9,580
Available-for-sale:
Unamortized Premium/(Discount)	10,622	9,580
Trading:
Unamortized Premium/(Discount)	10,622	9,580
AgVantage
Trading:
Available-for-sale, accrued interest excluded	51,500	53,300
Held-to-maturity, accrued interest excluded	44,400	58,900
Trading securities, accrued interest excluded	47	38
AgVantage | Farmer Mac Guaranteed Securities
Held-to-maturity:
Unpaid Principal Balance	1,000,689	4,158,857
Amortized Cost	1,000,594	4,128,468
Allowance for losses	(59)	(196)
Unrealized Gains	353	4,525
Unrealized Losses	(54,098)	(49,221)
Fair Value	946,790	4,083,576
AgVantage | Farmer Mac Guaranteed Securities:
Available-for-sale:
Unpaid Principal Balance	8,008,067	5,526,857
Amortized cost	8,008,873	5,526,857
Allowance for losses	(546)	(374)
Unrealized Gains	2,061	0
Unrealized Losses	(411,009)	(477,775)
Fair Value	7,599,379	5,048,708
AgVantage | Held-to-Maturity Securities | Farmer Mac Guaranteed Securities
Held-to-maturity:
Unamortized Premium/(Discount)	(95)	(30,389)
Available-for-sale:
Unamortized Premium/(Discount)	(95)	(30,389)
Trading:
Unamortized Premium/(Discount)	(95)	(30,389)
AgVantage | Available-for-Sale Securities | Farmer Mac Guaranteed Securities:
Held-to-maturity:
Unamortized Premium/(Discount)	806	0
Available-for-sale:
Unamortized Premium/(Discount)	806	0
Trading:
Unamortized Premium/(Discount)	806	0
Farmer Mac Guaranteed USDA Securities | Farmer Mac Guaranteed Securities
Held-to-maturity:
Unpaid Principal Balance	20,586	29,109
Amortized Cost	20,619	29,142
Allowance for losses	0	0
Unrealized Gains	2	0
Unrealized Losses	(856)	(1,362)
Fair Value	19,765	$ 27,780
Farmer Mac Guaranteed USDA Securities | USDA Securities
Trading:
Trading securities, weighted-average yield		5.50%
Farmer Mac Guaranteed USDA Securities | Held-to-Maturity Securities | Farmer Mac Guaranteed Securities
Held-to-maturity:
Unamortized Premium/(Discount)	33	$ 33
Available-for-sale:
Unamortized Premium/(Discount)	33	33
Trading:
Unamortized Premium/(Discount)	$ 33	$ 33

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Farmer Mac Guaranteed Securities and USDA Securities - Unrealized Loss Position (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Unrealized loss position for less than 12 months
Unrealized loss position for less than 12 months, Fair Value	$ 1,774,155	$ 2,819,885
Unrealized loss position for less than 12 months, Unrealized Loss	(38,277)	(96,252)
Unrealized loss position for more than 12 months
Unrealized loss position for more than 12 months, Fair Value	2,599,418	1,254,553
Unrealized loss position for more than 12 months, Unrealized Loss	(204,846)	(98,280)
Operating Segments
Unrealized loss position for less than 12 months
Unrealized loss position for less than 12 months, Fair Value	993,705	4,649,943
Unrealized loss position for less than 12 months, Unrealized Loss	(30,193)	(270,661)
Unrealized loss position for more than 12 months
Unrealized loss position for more than 12 months, Fair Value	4,055,377	1,548,551
Unrealized loss position for more than 12 months, Unrealized Loss	(447,582)	(143,123)
USDA Securities
Unrealized loss position for less than 12 months
Fair Value	1,495	2,086,108
Unrealized Loss	(22)	(312,824)
Unrealized loss position for more than 12 months
Fair Value	1,921,243	0
Unrealized Loss	(390,300)	0
Farmer Mac Guaranteed Securities and USDA Securities
Unrealized loss position for less than 12 months
Fair Value	2,043,447	2,654,532
Unrealized Loss	(2,957)	(325,135)
Unrealized loss position for more than 12 months
Fair Value	2,742,069	382,358
Unrealized Loss	(437,948)	(42,643)
AgVantage | Farmer Mac Guaranteed Securities
Unrealized loss position for less than 12 months
Fair Value	2,022,393	548,634
Unrealized Loss	(2,613)	(11,455)
Unrealized loss position for more than 12 months
Fair Value	812,575	382,358
Unrealized Loss	(46,608)	(42,643)
Unrealized loss position for less than 12 months
Unrealized loss position for less than 12 months, Fair Value		4,642,096
Unrealized loss position for less than 12 months, Unrealized Loss		(267,886)
Unrealized loss position for more than 12 months
Unrealized loss position for more than 12 months, Fair Value		1,548,551
Unrealized loss position for more than 12 months, Unrealized Loss		(143,123)
AgVantage | Farmer Mac Guaranteed Securities | Operating Segments
Unrealized loss position for less than 12 months
Unrealized loss position for less than 12 months, Fair Value	993,705
Unrealized loss position for less than 12 months, Unrealized Loss	(30,193)
Unrealized loss position for more than 12 months
Unrealized loss position for more than 12 months, Fair Value	4,055,377
Unrealized loss position for more than 12 months, Unrealized Loss	(447,582)
USDA Securities | Farmer Mac Guaranteed Securities
Unrealized loss position for less than 12 months
Fair Value	19,559	19,790
Unrealized Loss	(322)	(856)
Unrealized loss position for more than 12 months
Fair Value	8,251	0
Unrealized Loss	(1,040)	0
USDA Securities | Farmer Mac Guaranteed Securities | Operating Segments
Unrealized loss position for less than 12 months
Unrealized loss position for less than 12 months, Fair Value	0	7,847
Unrealized loss position for less than 12 months, Unrealized Loss	0	(2,775)
Unrealized loss position for more than 12 months
Unrealized loss position for more than 12 months, Fair Value	0	0
Unrealized loss position for more than 12 months, Unrealized Loss	$ 0	$ 0

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Farmer Mac Guaranteed Securities and USDA Securities - Narrative (Details) - AgVantage $ in Millions	Jul. 01, 2023 USD ($)	Sep. 30, 2023 security	Dec. 31, 2022 security
Debt Securities, Available-for-sale [Line Items]
Held-to-maturity, transfer in | $	$ 2,700.0
Held-to-maturity, transfer in, unrealized loss | $	31.9
Held-to-maturity, transfer in, accumulated unrealized loss | $	$ 31.9
Farmer Mac Guaranteed Securities
Debt Securities, Available-for-sale [Line Items]
Available-for-sale, securities in unrealized loss positions		76	95
Held-to-maturity, securities in unrealized loss positions		59	37
Unrealized loss position for more than 12 months, Number of securities in loss position		64	13
Debt securities, held-to-maturity, unrealized loss position for more than 12 months, Number of securities in loss position		26	4

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Farmer Mac Guaranteed Securities and USDA Securities - Schedule of Available-for-Sale Securities (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
AgVantage
Weighted- Average Yield
Available-for-sale, accrued interest excluded	$ 53,300	$ 51,500
Farmer Mac Guaranteed Securities
Amortized Cost
Due within one year	693,100
Due after one year through five years	2,739,174
Due after five years through ten years	1,142,500
Due after ten years	961,663
Available-for-sale, Amortized Cost	5,536,437
Fair Value
Due within one year	682,379
Due after one year through five years	2,579,604
Due after five years through ten years	997,848
Due after ten years	798,866
Total, Fair Value	$ 5,058,697
Weighted- Average Yield
Due within one year	3.25%
Due after one year through five years	3.47%
Due after five years through ten years	3.27%
Due after ten years	3.55%
Total, Weighted-Average Yield	3.41%

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Farmer Mac Guaranteed Securities and USDA Securities - Schedule of Held-to-Maturity Securities (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
AgVantage
Weighted- Average Yield
Held-to-maturity, accrued interest excluded	$ 58,900	$ 44,400
Farmer Mac Guaranteed Securities and USDA Securities
Amortized Cost
Due within one year	2,071,858
Due after one year through five years	1,321,681
Due after five years through ten years	453,755
Due after ten years	2,632,671
Total, Amortized Cost	6,479,965
Fair Value
Due within one year	2,066,836
Due after one year through five years	1,269,796
Due after five years through ten years	409,148
Due after ten years	2,297,803
Total, Fair Value	$ 6,043,583
Weighted- Average Yield
Due within one year	5.61%
Due after one year through five years	4.22%
Due after five years through ten years	4.30%
Due after ten years	4.19%
Total, Weighted- Average Yield	4.68%

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Financial Derivatives - Narrative (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022
Derivative [Line Items]
Financing Receivable, Accrued Interest, after Allowance for Credit Loss, Statement of Financial Position [Extensible Enumeration]	Accrued interest receivable (includes $10,666 and $12,514, respectively, related to consolidated trusts)		Accrued interest receivable (includes $10,666 and $12,514, respectively, related to consolidated trusts)		Accrued interest receivable (includes $10,666 and $12,514, respectively, related to consolidated trusts)
Gain expected to be reclassified from AOCI to earnings over next 12 months	$ 16,600,000		$ 16,600,000
Gain (loss) from interest rate swaps designated as cash flow hedges reclassified to earnings	0	$ 0	0	$ 0
Financial derivatives in net payable position	0		0		$ 0
Notional amount	24,460,267,000		24,460,267,000		23,878,611,000
Exchange Cleared
Derivative [Line Items]
Notional amount	19,500,000,000		19,500,000,000		19,500,000,000
Interest Rate Swap
Derivative [Line Items]
Notional amount	24,500,000,000		24,500,000,000		23,900,000,000
Cleared Swaps
Derivative [Line Items]
Accrued interest on cleared swaps	14,300,000		14,300,000		6,100,000
Uncleared Swaps
Derivative [Line Items]
Accrued interest payable	$ 6,300,000		$ 6,300,000		$ 3,600,000

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Financial Derivatives - Schedule of Derivative Instruments in Statement of Financial Position (Details) - USD ($) $ / shares in Units, $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2023	Dec. 31, 2022
Notional Disclosures [Abstract]
Notional Amount	$ 24,460,267	$ 23,878,611
Asset
Fair value, asset	28,855	37,409
Netting adjustments	(3,180)	(5,212)
(Liability)
Fair value, liability	(188,362)	(175,326)
Netting adjustments	3,180	5,212
Designated as hedge | Fair value hedges: | Receive fixed non-callable
Notional Disclosures [Abstract]
Notional Amount	8,942,935	8,149,871
Asset
Fair value, asset	2,996	13,689
(Liability)
Fair value, liability	$ (11)	$ (366)
Weighted- Average Pay Rate	5.46%	2.23%
Weighted- Average Receive Rate	2.74%	4.33%
Weighted- Average Remaining Term (in years)	1 year 8 months 1 day	10 years 9 months 3 days
Designated as hedge | Fair value hedges: | Pay fixed non-callable
Notional Disclosures [Abstract]
Notional Amount	$ 8,830,943	$ 10,033,750
Asset
Fair value, asset	81	19
(Liability)
Fair value, liability	$ (11,054)	$ (4,686)
Weighted- Average Pay Rate	2.39%	4.31%
Weighted- Average Receive Rate	5.33%	2.03%
Weighted- Average Remaining Term (in years)	9 years 10 months 20 days	1 year 7 months 20 days
Designated as hedge | Fair value hedges: | Receive fixed callable
Notional Disclosures [Abstract]
Notional Amount	$ 4,181,077	$ 2,764,577
Asset
Fair value, asset	0	461
(Liability)
Fair value, liability	$ (179,299)	$ (174,757)
Weighted- Average Pay Rate	5.26%	4.21%
Weighted- Average Receive Rate	3.06%	1.98%
Weighted- Average Remaining Term (in years)	2 years 4 months 13 days	3 years 2 months 4 days
Designated as hedge | Cash flow hedges: | Pay fixed non-callable
Notional Disclosures [Abstract]
Notional Amount	$ 563,000	$ 588,000
Asset
Fair value, asset	27,510	27,275
(Liability)
Fair value, liability	$ (372)	$ 0
Weighted- Average Pay Rate	1.94%	1.93%
Weighted- Average Receive Rate	5.74%	4.72%
Weighted- Average Remaining Term (in years)	4 years 6 months 3 days	5 years 18 days
No hedge designation | Receive fixed non-callable
Notional Disclosures [Abstract]
Notional Amount	$ 851,146	$ 287,750
Asset
Fair value, asset	69	0
(Liability)
Fair value, liability	$ (3)	$ (130)
Weighted- Average Pay Rate	5.34%	4.31%
Weighted- Average Receive Rate	4.51%	1.16%
Weighted- Average Remaining Term (in years)	8 months 12 days	1 year 9 months 3 days
No hedge designation | Pay fixed non-callable
Notional Disclosures [Abstract]
Notional Amount	$ 183,882	$ 187,479
Asset
Fair value, asset	1,240	1,065
(Liability)
Fair value, liability	$ (166)	$ (1)
Weighted- Average Pay Rate	2.92%	3.05%
Weighted- Average Receive Rate	5.44%	4.09%
Weighted- Average Remaining Term (in years)	4 years 3 days	4 years 6 months 7 days
No hedge designation | Basis swaps
Notional Disclosures [Abstract]
Notional Amount	$ 895,384	$ 1,860,384
Asset
Fair value, asset	58	112
(Liability)
Fair value, liability	$ (625)	$ (456)
Weighted- Average Pay Rate	5.43%	4.40%
Weighted- Average Receive Rate	5.45%	4.42%
Weighted- Average Remaining Term (in years)	3 years 10 months 20 days	2 years 5 months 15 days
No hedge designation | Treasury futures
Notional Disclosures [Abstract]
Notional Amount	$ 11,900	$ 6,800
Asset
Fair value, asset	81	0
Netting adjustments	(3,180)	(5,212)
(Liability)
Fair value, liability	(12)	(142)
Netting adjustments	$ 3,180	$ 5,212
Weighted- Average Forward Price (in dollars per share)	$ 108.64	$ 114.38

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Financial Derivatives - Schedule of Net Income/(Expense) Recognized (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Derivative Instruments, Gain (Loss) [Line Items]
Investments and cash equivalents	$ 79,947	$ 21,581	$ 209,429	$ 38,497
Interest Income Farmer Mac Guaranteed Securities and USDA Securities	161,351	74,695	442,649	169,231
Interest Income Loans	140,513	97,514	388,837	241,393
Total interest expense	(294,168)	(125,937)	(795,537)	(251,816)
Gains on financial derivatives	2,671	772	4,763	21,551
Total	90,314	68,625	250,141	218,856
Interest expense on interest rate swaps	9,505	4,192	20,731	33,272
Fair value hedges:
Derivative Instruments, Gain (Loss) [Line Items]
Recognized on hedged items	(265,777)	(159,661)	(313,047)	(488,481)
Gains/(losses) on fair value hedging relationships	3,210	(625)	(1,796)	5,953
Cash flow hedges:
Derivative Instruments, Gain (Loss) [Line Items]
Premium/discount amortization recognized on hedged items	(14)	(15)	(41)	(43)
Interest settlements reclassified from AOCI into net income on derivatives	5,569	1,072	15,051	(2,094)
Recognized on hedged items	(8,287)	(4,046)	(23,325)	(6,654)
Expense recognized on cash flow hedges	(2,732)	(2,989)	(8,315)	(8,791)
Designated as hedge | Fair value hedges:
Derivative Instruments, Gain (Loss) [Line Items]
Recognized on hedged items	(20,127)	19,974	(38,049)	76,840
Premium/discount amortization recognized on hedged items	(109)	(608)	(738)	(2,294)
No hedge designation
Derivative Instruments, Gain (Loss) [Line Items]
Gains on financial derivatives	2,671	772	4,763	21,551
Interest Income Investments and Cash Equivalents | Fair value hedges:
Derivative Instruments, Gain (Loss) [Line Items]
Recognized on hedged items	(41,944)	(52,308)	(46,485)	(108,002)
Gains/(losses) on fair value hedging relationships	107	(2,935)	(763)	(1,067)
Interest Income Investments and Cash Equivalents | Cash flow hedges:
Derivative Instruments, Gain (Loss) [Line Items]
Premium/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 Investments and Cash Equivalents | Designated as hedge | Fair value hedges:
Derivative Instruments, Gain (Loss) [Line Items]
Recognized on hedged items	9,006	4,617	23,865	10,433
Premium/discount amortization recognized on hedged items	623	(59)	1,399	(816)
Interest Income Investments and Cash Equivalents | No hedge designation
Derivative Instruments, Gain (Loss) [Line Items]
Gains on financial derivatives	0	0	0	0
Interest Income Farmer Mac Guaranteed Securities and USDA Securities | Fair value hedges:
Derivative Instruments, Gain (Loss) [Line Items]
Recognized on hedged items	(107,965)	(204,765)	(116,591)	(564,679)
Gains/(losses) on fair value hedging relationships	2,231	(2,901)	676	(782)
Interest Income Farmer Mac Guaranteed Securities and USDA Securities | Cash flow hedges:
Derivative Instruments, Gain (Loss) [Line Items]
Premium/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	46,303	35,763	133,995	102,123
Premium/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]
Gains on financial derivatives	0	0	0	0
Interest Income Loans | Fair value hedges:
Derivative Instruments, Gain (Loss) [Line Items]
Recognized on hedged items	(105,403)	(100,490)	(97,827)	(337,443)
Gains/(losses) on fair value hedging relationships	1,862	5,193	(481)	9,591
Interest Income Loans | Cash flow hedges:
Derivative Instruments, Gain (Loss) [Line Items]
Premium/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	16,089	14,857	47,144	41,146
Premium/discount amortization recognized on hedged items	0	0	0	0
Interest Income Loans | No hedge designation
Derivative Instruments, Gain (Loss) [Line Items]
Gains on financial derivatives	0	0	0	0
Total Interest Expense | Fair value hedges:
Derivative Instruments, Gain (Loss) [Line Items]
Recognized on hedged items	(10,465)	197,902	(52,144)	521,643
Gains/(losses) on fair value hedging relationships	(990)	18	(1,228)	(1,789)
Total Interest Expense | Cash flow hedges:
Derivative Instruments, Gain (Loss) [Line Items]
Premium/discount amortization recognized on hedged items	(14)	(15)	(41)	(43)
Interest settlements reclassified from AOCI into net income on derivatives	5,569	1,072	15,051	(2,094)
Recognized on hedged items	(8,287)	(4,046)	(23,325)	(6,654)
Expense recognized on cash flow hedges	(2,732)	(2,989)	(8,315)	(8,791)
Total Interest Expense | Designated as hedge | Fair value hedges:
Derivative Instruments, Gain (Loss) [Line Items]
Recognized on hedged items	(91,525)	(35,263)	(243,053)	(76,862)
Premium/discount amortization recognized on hedged items	(732)	(549)	(2,137)	(1,478)
Total Interest Expense | No hedge designation
Derivative Instruments, Gain (Loss) [Line Items]
Gains on financial derivatives	0	0	0	0
Gains on financial derivatives | Fair value hedges:
Derivative Instruments, Gain (Loss) [Line Items]
Recognized on hedged items	0	0	0	0
Gains/(losses) on fair value hedging relationships	0	0	0	0
Gains on financial derivatives | Cash flow hedges:
Derivative Instruments, Gain (Loss) [Line Items]
Premium/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
Gains on financial derivatives | Designated as hedge | Fair value hedges:
Derivative Instruments, Gain (Loss) [Line Items]
Recognized on hedged items	0	0	0	0
Premium/discount amortization recognized on hedged items	0	0	0	0
Gains on financial derivatives | No hedge designation
Derivative Instruments, Gain (Loss) [Line Items]
Gains on financial derivatives	2,671	772	4,763	21,551
Interest Rate Swap | Fair value hedges:
Derivative Instruments, Gain (Loss) [Line Items]
Recognized on derivatives	(24,907)	(20,235)	(82,758)	(52,622)
Income/(expense) related to interest settlements on fair value hedging relationships	(45,143)	(869)	(121,545)	21,924
Recognized on derivatives	268,987	159,036	311,251	494,434
Interest Rate Swap | No hedge designation
Derivative Instruments, Gain (Loss) [Line Items]
Gains on financial derivatives	2,772	5,054	5,263	10,954
Interest expense on interest rate swaps	(805)	(2,613)	(3,999)	(5,496)
Interest Rate Swap | Interest Income Investments and Cash Equivalents | Fair value hedges:
Derivative Instruments, Gain (Loss) [Line Items]
Recognized on derivatives	9,950	957	24,952	(1,536)
Income/(expense) related to interest settlements on fair value hedging relationships	19,579	5,515	50,216	8,081
Recognized on derivatives	42,051	49,373	45,722	106,935
Interest Rate Swap | Interest Income Investments and Cash Equivalents | No hedge designation
Derivative Instruments, Gain (Loss) [Line Items]
Gains on financial derivatives	0	0	0	0
Interest expense on interest rate swaps	0	0	0	0
Interest Rate Swap | Interest Income Farmer Mac Guaranteed Securities and USDA Securities | Fair value hedges:
Derivative Instruments, Gain (Loss) [Line Items]
Recognized on derivatives	40,114	(350)	104,023	(37,687)
Income/(expense) related to interest settlements on fair value hedging relationships	86,417	35,413	238,018	64,436
Recognized on derivatives	110,196	201,864	117,267	563,897
Interest Rate Swap | Interest Income Farmer Mac Guaranteed Securities and USDA Securities | No hedge designation
Derivative Instruments, Gain (Loss) [Line Items]
Gains on financial derivatives	0	0	0	0
Interest expense on interest rate swaps	0	0	0	0
Interest Rate Swap | Interest Income Loans | Fair value hedges:
Derivative Instruments, Gain (Loss) [Line Items]
Recognized on derivatives	17,692	1,837	46,625	(9,568)
Income/(expense) related to interest settlements on fair value hedging relationships	33,781	16,694	93,769	31,578
Recognized on derivatives	107,265	105,683	97,346	347,034
Interest Rate Swap | Interest Income Loans | No hedge designation
Derivative Instruments, Gain (Loss) [Line Items]
Gains on financial derivatives	0	0	0	0
Interest expense on interest rate swaps	0	0	0	0
Interest Rate Swap | Total Interest Expense | Fair value hedges:
Derivative Instruments, Gain (Loss) [Line Items]
Recognized on derivatives	(92,663)	(22,679)	(258,358)	(3,831)
Income/(expense) related to interest settlements on fair value hedging relationships	(184,920)	(58,491)	(503,548)	(82,171)
Recognized on derivatives	9,475	(197,884)	50,916	(523,432)
Interest Rate Swap | Total Interest Expense | No hedge designation
Derivative Instruments, Gain (Loss) [Line Items]
Gains on financial derivatives	0	0	0	0
Interest expense on interest rate swaps	0	0	0	0
Interest Rate Swap | Gains 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 | Gains on financial derivatives | No hedge designation
Derivative Instruments, Gain (Loss) [Line Items]
Gains on financial derivatives	2,772	5,054	5,263	10,954
Interest expense on interest rate swaps	(805)	(2,613)	(3,999)	(5,496)
Treasury futures | No hedge designation
Derivative Instruments, Gain (Loss) [Line Items]
Gains on financial derivatives	704	(1,669)	3,499	16,093
Treasury futures | Interest Income Investments and Cash Equivalents | No hedge designation
Derivative Instruments, Gain (Loss) [Line Items]
Gains on financial derivatives	0	0	0	0
Treasury futures | Interest Income Farmer Mac Guaranteed Securities and USDA Securities | No hedge designation
Derivative Instruments, Gain (Loss) [Line Items]
Gains on financial derivatives	0	0	0	0
Treasury futures | Interest Income Loans | No hedge designation
Derivative Instruments, Gain (Loss) [Line Items]
Gains on financial derivatives	0	0	0	0
Treasury futures | Total Interest Expense | No hedge designation
Derivative Instruments, Gain (Loss) [Line Items]
Gains on financial derivatives	0	0	0	0
Treasury futures | Gains on financial derivatives | No hedge designation
Derivative Instruments, Gain (Loss) [Line Items]
Gains on financial derivatives	$ 704	$ (1,669)	$ 3,499	$ 16,093

XML

Financial Derivatives - Hedged Items in Fair Value Hedging Relationships (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Available-for-Sale Securities
HedgedItemsinFairValueHedgingRelationship [Line Items]
Carrying Amount of Hedged Assets/(Liabilities)	$ 1,138,569	$ 876,063
Hedged Asset	(153,592)	(107,107)
Loans
HedgedItemsinFairValueHedgingRelationship [Line Items]
Carrying Amount of Hedged Assets/(Liabilities)	1,570,732	1,623,301
Hedged Asset	(425,105)	(327,278)
Long-term Debt
HedgedItemsinFairValueHedgingRelationship [Line Items]
Carrying Amount of Hedged Assets/(Liabilities)	(12,614,569)	(12,151,382)
Hedged Liability	478,942	531,086
Farmer Mac Guaranteed Securities:
HedgedItemsinFairValueHedgingRelationship [Line Items]
Carrying Amount of Hedged Assets/(Liabilities)	5,025,413	4,814,784
Hedged Asset	$ (463,464)	$ (346,873)

XML

Financial Derivatives - Schedule of Fair Value of Financial Assets and Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Assets:
Gross Amount Recognized	$ 30,763	$ 41,582
Gross Amounts offset in the Consolidated Balance Sheet	(3,180)	(5,212)
Net Amount Presented in the Consolidated Balance Sheet	27,583	36,370
Netting Adjustments	(27,501)	(27,132)
Financial instruments pledged	0	203,993
Cash collateral	0	0
Net Amount	82	213,231
Liabilities:
Gross Amount Recognized	(162,247)	(155,076)
Gross Amounts offset in the Consolidated Balance Sheet	3,180	5,212
Net Amount Presented in the Consolidated Balance Sheet	(159,067)	(149,864)
Netting Adjustments	27,501	27,132
Financial instruments pledged	204,407	0
Cash collateral	120,556	121,065
Net Amount	193,397	(1,667)
Derivative liability, not subject to master netting arrangement	24,100	23,700
Uncleared derivatives
Assets:
Gross Amount Recognized	27,583	27,132
Gross Amounts offset in the Consolidated Balance Sheet	0	0
Net Amount Presented in the Consolidated Balance Sheet	27,583	27,132
Netting Adjustments	(27,501)	(27,132)
Financial instruments pledged	0	0
Cash collateral	0	0
Net Amount	82	0
Liabilities:
Gross Amount Recognized	(150,625)	(149,864)
Gross Amounts offset in the Consolidated Balance Sheet	0	0
Net Amount Presented in the Consolidated Balance Sheet	(150,625)	(149,864)
Netting Adjustments	27,501	27,132
Financial instruments pledged	0	0
Cash collateral	120,556	121,065
Net Amount	(2,568)	(1,667)
Cleared derivatives
Assets:
Gross Amount Recognized	3,180	14,450
Gross Amounts offset in the Consolidated Balance Sheet	(3,180)	(5,212)
Net Amount Presented in the Consolidated Balance Sheet	0	9,238
Netting Adjustments	0	0
Financial instruments pledged	0	203,993
Cash collateral	0	0
Net Amount	0	213,231
Liabilities:
Gross Amount Recognized	(11,622)	(5,212)
Gross Amounts offset in the Consolidated Balance Sheet	3,180	5,212
Net Amount Presented in the Consolidated Balance Sheet	(8,442)	0
Netting Adjustments	0	0
Financial instruments pledged	204,407	0
Cash collateral	0	0
Net Amount	$ 195,965	$ 0

XML

Loans - Narrative (Details)	3 Months Ended		9 Months Ended
	Sep. 30, 2023 USD ($)	Sep. 30, 2022 USD ($)	Sep. 30, 2023 USD ($) segment	Sep. 30, 2022 USD ($)	Dec. 31, 2022 USD ($)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held for sale, at lower of cost or fair value	$ 0		$ 0		$ 0
Number of operating segments | segment			7
(Release of)/provision for losses	(136,000)	$ 617,000	$ 1,484,000	$ (699,000)
Agricultural Finance
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of operating segments | segment			2
(Release of)/provision for losses	(3,714,000)	181,000	$ 813,000	838,000
Rural Infrastructure Finance
Accounts, Notes, Loans and Financing Receivable [Line Items]
(Release of)/provision for losses	$ 3,580,000	$ 418,000	$ 712,000	$ (1,793,000)

XML

Loans - Schedule of Composition of Loan Balances (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Jun. 30, 2023	Dec. 31, 2022	Sep. 30, 2022	Jun. 30, 2022	Dec. 31, 2021
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	$ 10,977,162		$ 10,549,845
Allowance for losses	(16,614)		(15,089)
Total loans, net of allowance	10,537,173		10,205,466
Real Estate Loan
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	10,977,162		10,549,845
Unamortized premiums, discounts, fair value hedge basis adjustment, and other cost basis adjustments	(423,375)		(329,290)
Total	10,553,787		10,220,555
Allowance for losses	(16,614)		(15,089)
Total loans, net of allowance	10,537,173		10,205,466
Farm & Ranch
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	6,410,672		6,362,326
Allowance for losses	(3,910)	$ (3,935)	(4,044)	$ (2,112)	$ (2,265)	$ (2,882)
Farm & Ranch | Real Estate Loan
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	6,410,672		6,362,326
Corporate AgFinance
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	1,223,777		1,166,253
Allowance for losses	(3,678)	(7,367)	(2,731)	(2,084)	(1,750)	(560)
Corporate AgFinance | Real Estate Loan
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	1,223,777		1,166,253
Agricultural Finance
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	7,634,449		7,528,579
Allowance for losses	(7,588)	(11,302)	(6,775)	(4,196)	(4,015)	(3,442)
Agricultural Finance | Real Estate Loan
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	7,634,449		7,528,579
Rural Infrastructure Finance
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	3,342,713		3,021,266
Allowance for losses	(9,026)	$ (5,446)	(8,314)	$ (8,806)	$ (8,388)	$ (10,599)
Rural Infrastructure Finance | Real Estate Loan
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	3,342,713		3,021,266
Unsecuritized
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	9,554,308		9,338,269
Unamortized premiums, discounts, fair value hedge basis adjustment, and other cost basis adjustments	(423,375)		(329,290)
Total	9,130,933		9,008,979
Allowance for losses	(16,162)		(14,629)
Total loans, net of allowance	9,114,771		8,994,350
Unsecuritized | Farm & Ranch
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	4,987,818		5,150,750
Unsecuritized | Corporate AgFinance
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	1,223,777		1,166,253
Unsecuritized | Agricultural Finance
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	6,211,595		6,317,003
Unsecuritized | Rural Infrastructure Finance
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	3,342,713		3,021,266
In Consolidated Trusts
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	1,422,854		1,211,576
Unamortized premiums, discounts, fair value hedge basis adjustment, and other cost basis adjustments	0		0
Total	1,422,854		1,211,576
Allowance for losses	(452)		(460)
Total loans, net of allowance	1,422,402		1,211,116
In Consolidated Trusts | Farm & Ranch
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	1,422,854		1,211,576
In Consolidated Trusts | Corporate AgFinance
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	0		0
In Consolidated Trusts | Agricultural Finance
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	1,422,854		1,211,576
In Consolidated Trusts | Rural Infrastructure Finance
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	$ 0		$ 0

XML

Loans - Allowance for Losses (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Jun. 30, 2023	Dec. 31, 2022	Sep. 30, 2022	Jun. 30, 2022	Dec. 31, 2021
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance for losses	$ 16,614		$ 15,089
Farm & Ranch
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance for losses	3,910	$ 3,935	4,044	$ 2,112	$ 2,265	$ 2,882
Corporate AgFinance
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance for losses	3,678	7,367	2,731	2,084	1,750	560
Agricultural Finance
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance for losses	7,588	11,302	6,775	4,196	4,015	3,442
Rural Infrastructure Finance
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance for losses	$ 9,026	$ 5,446	$ 8,314	$ 8,806	$ 8,388	$ 10,599

XML

Loans - Changes in the Allowance for Losses (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Beginning balance			$ 15,089,000
(Release of)/provision for losses	$ (136,000)	$ 617,000	1,484,000	$ (699,000)
Ending balance	16,614,000		16,614,000
Farm & Ranch
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Beginning balance	3,935,000	2,265,000	4,044,000	2,882,000
(Release of)/provision for losses	(25,000)	(153,000)	(134,000)	(686,000)
Charge-offs	0	0	0	(84,000)
Ending balance	3,910,000	2,112,000	3,910,000	2,112,000
Farm & Ranch | Commercial Real Estate
Financing Receivable, Allowance for Credit Losses [Roll Forward]
(Release of)/provision for losses			1,100,000	0
Farm & Ranch | Operating Segments
Financing Receivable, Allowance for Credit Losses [Roll Forward]
(Release of)/provision for losses	(13,000)	(93,000)	(136,000)	(440,000)
Corporate AgFinance
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Beginning balance	7,367,000	1,750,000	2,731,000	560,000
(Release of)/provision for losses	(3,689,000)	334,000	947,000	1,524,000
Charge-offs	0	0	0	0
Ending balance	3,678,000	2,084,000	3,678,000	2,084,000
Corporate AgFinance | Commercial Real Estate
Financing Receivable, Allowance for Credit Losses [Roll Forward]
(Release of)/provision for losses			0	1,700,000
Corporate AgFinance | Operating Segments
Financing Receivable, Allowance for Credit Losses [Roll Forward]
(Release of)/provision for losses	(3,694,000)	333,000	934,000	1,498,000
Agricultural Finance
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Beginning balance	11,302,000	4,015,000	6,775,000	3,442,000
(Release of)/provision for losses	(3,714,000)	181,000	813,000	838,000
Charge-offs	0	0	0	(84,000)
Ending balance	7,588,000	4,196,000	7,588,000	4,196,000
Rural Infrastructure Finance
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Beginning balance	5,446,000	8,388,000	8,314,000	10,599,000
(Release of)/provision for losses	3,580,000	418,000	712,000	(1,793,000)
Charge-offs	0	0	0	0
Ending balance	$ 9,026,000	$ 8,806,000	9,026,000	8,806,000
Rural Infrastructure Finance | Collateral Pledged
Financing Receivable, Allowance for Credit Losses [Roll Forward]
(Release of)/provision for losses			$ 0	$ 0

XML

Loans - Unpaid Principal Balances by Delinquency Status (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended	12 Months Ended
	Sep. 30, 2023	Sep. 30, 2023	Dec. 31, 2022
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans held for investment, at amortized cost	$ 9,130,933	$ 9,130,933	$ 9,008,979
Nonaccrual loans	63,866	63,866	78,965
Total loans	10,977,162	10,977,162	10,549,845
Nonaccrual loans with no associated allowance	23,800	23,800	22,000
Interest received on nonaccrual loans	400	1,900	5,600
Farm & Ranch
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans held for investment, at amortized cost	6,410,672	6,410,672	6,362,326
Nonaccrual loans	63,866	63,866	63,402
Total loans	6,410,672	6,410,672	6,362,326
Corporate AgFinance
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans held for investment, at amortized cost	1,223,777	1,223,777	1,166,253
Nonaccrual loans	0	0	15,563
Total loans	1,223,777	1,223,777	1,166,253
Agricultural Finance
Financing Receivable, Recorded Investment, Past Due [Line Items]
Nonaccrual loans	63,866	63,866	78,965
Total loans	7,634,449	7,634,449	7,528,579
Rural Infrastructure Finance
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans held for investment, at amortized cost	3,342,713	3,342,713	3,021,266
Nonaccrual loans	0	0	0
Total loans	3,342,713	3,342,713	3,021,266
Current
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans held for investment, at amortized cost	10,885,584	10,885,584	10,459,282
Current | Farm & Ranch
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans held for investment, at amortized cost	6,319,094	6,319,094	6,287,326
Current | Corporate AgFinance
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans held for investment, at amortized cost	1,223,777	1,223,777	1,150,690
Current | Agricultural Finance
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans held for investment, at amortized cost	7,542,871	7,542,871	7,438,016
Current | Rural Infrastructure Finance
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans held for investment, at amortized cost	3,342,713	3,342,713	3,021,266
Total Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans held for investment, at amortized cost	27,712	27,712	11,598
Total Past Due | Farm & Ranch
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans held for investment, at amortized cost	27,712	27,712	11,598
Total Past Due | Corporate AgFinance
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans held for investment, at amortized cost	0	0	0
Total Past Due | Agricultural Finance
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans held for investment, at amortized cost	27,712	27,712	11,598
Total Past Due | Rural Infrastructure Finance
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans held for investment, at amortized cost	0	0	0
30-59 Days
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans held for investment, at amortized cost	15,652	15,652	10,066
30-59 Days | Farm & Ranch
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans held for investment, at amortized cost	15,652	15,652	10,066
30-59 Days | Corporate AgFinance
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans held for investment, at amortized cost	0	0	0
30-59 Days | Agricultural Finance
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans held for investment, at amortized cost	15,652	15,652	10,066
30-59 Days | Rural Infrastructure Finance
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans held for investment, at amortized cost	0	0	0
60-89 Days
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans held for investment, at amortized cost	5,321	5,321	392
60-89 Days | Farm & Ranch
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans held for investment, at amortized cost	5,321	5,321	392
60-89 Days | Corporate AgFinance
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans held for investment, at amortized cost	0	0	0
60-89 Days | Agricultural Finance
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans held for investment, at amortized cost	5,321	5,321	392
60-89 Days | Rural Infrastructure Finance
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans held for investment, at amortized cost	0	0	0
90 Days and Greater
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans held for investment, at amortized cost	6,739	6,739	1,140
90 Days and Greater | Farm & Ranch
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans held for investment, at amortized cost	6,739	6,739	1,140
90 Days and Greater | Corporate AgFinance
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans held for investment, at amortized cost	0	0	0
90 Days and Greater | Agricultural Finance
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans held for investment, at amortized cost	6,739	6,739	1,140
90 Days and Greater | Rural Infrastructure Finance
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans held for investment, at amortized cost	$ 0	$ 0	$ 0

XML

Loans - Schedule of Financing Receivables Credit Quality Indicators (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022
Total
Total	$ 9,130,933		$ 9,130,933		$ 9,008,979
Farm & Ranch
Year One
Total	396,304		396,304		1,252,022
Current period charge-offs	0	$ 0	0	$ 0
Year Two
Total	1,213,248		1,213,248		1,781,621
Current period charge-offs	0	0	0	0
Year Three
Total	1,702,094		1,702,094		1,236,079
Current period charge-offs	0	0	0	0
Year Four
Total	1,163,359		1,163,359		395,895
Current period charge-offs	0	0	0	0
Year Five
Total	360,067		360,067		265,661
Current period charge-offs	0	0	0	0
Prior
Total	1,172,364		1,172,364		1,032,986
Current period charge-offs	0	0	0	(84)
Revolving Loans - Amortized Cost Basis
Total	403,236		403,236		398,062
Current period charge-offs	0	0	0	0
Total
Total	6,410,672		6,410,672		6,362,326
Current period charge-offs	0	0	0	(84)
Corporate AgFinance
Year One
Total	180,030		180,030		145,263
Current period charge-offs	0	0	0	0
Year Two
Total	113,149		113,149		299,729
Current period charge-offs	0	0	0	0
Year Three
Total	278,204		278,204		226,158
Current period charge-offs	0	0	0	0
Year Four
Total	174,541		174,541		128,928
Current period charge-offs	0	0	0	0
Year Five
Total	120,043		120,043		76,454
Current period charge-offs	0	0	0	0
Prior
Total	114,779		114,779		44,827
Current period charge-offs	0	0	0	0
Revolving Loans - Amortized Cost Basis
Total	243,031		243,031		244,894
Current period charge-offs	0	0	0	0
Total
Total	1,223,777		1,223,777		1,166,253
Current period charge-offs	0	0	0	0
Rural Infrastructure Finance
Year One
Total	450,241		450,241		741,021
Current period charge-offs	0	0	0	0
Year Two
Total	724,129		724,129		220,420
Current period charge-offs	0	0	0	0
Year Three
Total	189,385		189,385		629,223
Current period charge-offs	0	0	0	0
Year Four
Total	598,689		598,689		739,270
Current period charge-offs	0	0	0	0
Year Five
Total	711,794		711,794		7,932
Current period charge-offs	0	0	0	0
Prior
Total	610,062		610,062		649,830
Current period charge-offs	0	0	0	0
Revolving Loans - Amortized Cost Basis
Total	58,413		58,413		33,570
Current period charge-offs	0	0	0	0
Total
Total	3,342,713		3,342,713		3,021,266
Current period charge-offs	0	$ 0	0	$ 0
Acceptable | Farm & Ranch
Year One
Total	346,745		346,745		1,157,829
Year Two
Total	1,143,457		1,143,457		1,704,547
Year Three
Total	1,633,550		1,633,550		1,187,474
Year Four
Total	1,129,203		1,129,203		360,704
Year Five
Total	317,213		317,213		242,491
Prior
Total	1,077,958		1,077,958		947,535
Revolving Loans - Amortized Cost Basis
Total	379,009		379,009		385,503
Total
Total	6,027,135		6,027,135		5,986,083
Acceptable | Corporate AgFinance
Year One
Total	180,030		180,030		145,263
Year Two
Total	98,524		98,524		299,729
Year Three
Total	262,572		262,572		221,560
Year Four
Total	123,685		123,685		108,230
Year Five
Total	99,696		99,696		76,454
Prior
Total	113,758		113,758		44,827
Revolving Loans - Amortized Cost Basis
Total	240,977		240,977		232,107
Total
Total	1,119,242		1,119,242		1,128,170
Acceptable | Rural Infrastructure Finance
Year One
Total	450,241		450,241		741,021
Year Two
Total	694,635		694,635		220,420
Year Three
Total	189,385		189,385		629,223
Year Four
Total	598,689		598,689		739,270
Year Five
Total	711,794		711,794		7,932
Prior
Total	610,062		610,062		649,830
Revolving Loans - Amortized Cost Basis
Total	58,413		58,413		33,570
Total
Total	3,313,219		3,313,219		3,021,266
Special mention | Farm & Ranch
Year One
Total	49,039		49,039		91,099
Year Two
Total	48,891		48,891		68,260
Year Three
Total	61,030		61,030		25,629
Year Four
Total	12,530		12,530		11,254
Year Five
Total	19,164		19,164		5,325
Prior
Total	29,464		29,464		17,797
Revolving Loans - Amortized Cost Basis
Total	13,430		13,430		2,452
Total
Total	233,548		233,548		221,816
Special mention | Corporate AgFinance
Year One
Total	0		0		0
Year Two
Total	14,625		14,625		0
Year Three
Total	15,632		15,632		0
Year Four
Total	50,856		50,856		20,698
Year Five
Total	20,347		20,347		0
Prior
Total	1,021		1,021		0
Revolving Loans - Amortized Cost Basis
Total	2,054		2,054		2,145
Total
Total	104,535		104,535		22,843
Special mention | Rural Infrastructure Finance
Year One
Total	0		0		0
Year Two
Total	0		0		0
Year Three
Total	0		0		0
Year Four
Total	0		0		0
Year Five
Total	0		0		0
Prior
Total	0		0		0
Revolving Loans - Amortized Cost Basis
Total	0		0		0
Total
Total	0		0		0
Substandard | Farm & Ranch
Year One
Total	520		520		3,094
Year Two
Total	20,900		20,900		8,814
Year Three
Total	7,514		7,514		22,976
Year Four
Total	21,626		21,626		23,937
Year Five
Total	23,690		23,690		17,845
Prior
Total	64,942		64,942		67,654
Revolving Loans - Amortized Cost Basis
Total	10,797		10,797		10,107
Total
Total	149,989		149,989		154,427
Substandard | Corporate AgFinance
Year One
Total	0		0		0
Year Two
Total	0		0		0
Year Three
Total	0		0		4,598
Year Four
Total	0		0		0
Year Five
Total	0		0		0
Prior
Total	0		0		0
Revolving Loans - Amortized Cost Basis
Total	0		0		10,642
Total
Total	0		0		15,240
Substandard | Rural Infrastructure Finance
Year One
Total	0		0		0
Year Two
Total	29,494		29,494		0
Year Three
Total	0		0		0
Year Four
Total	0		0		0
Year Five
Total	0		0		0
Prior
Total	0		0		0
Revolving Loans - Amortized Cost Basis
Total	0		0		0
Total
Total	$ 29,494		$ 29,494		$ 0

XML

Guarantees and Commitments - Off-Balance Sheet Guaranteed Securities (Details) - Farmer Mac Guaranteed USDA Securities - Unconsolidated VIE - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Guarantor Obligations [Line Items]
Total off-balance sheet Farmer Mac Guaranteed Securities	$ 456,779	$ 502,122
Agricultural Finance
Guarantor Obligations [Line Items]
Total off-balance sheet Farmer Mac Guaranteed Securities	455,681	500,953
Rural Infrastructure Finance
Guarantor Obligations [Line Items]
Total off-balance sheet Farmer Mac Guaranteed Securities	$ 1,098	$ 1,169

XML

Guarantees and Commitments - Significant Cash Flows Received From and Paid to Trusts (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Commitments and Contingencies Disclosure [Abstract]
Proceeds from new securitizations	$ 222,188	$ 305,410
Guarantee fees received	$ 1,280	$ 1,464

XML

Guarantees and Commitments - Schedule of Underlying Off-Balance Sheet Guaranteed Securities (Details) - Farmer Mac Guaranteed USDA Securities - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2023	Dec. 31, 2022
Guarantor Obligations [Line Items]
Guarantee and commitment obligation	$ 6,053	$ 6,461
Weighted-average remaining maturity	22 years 1 month 6 days	21 years 4 months 24 days
AgVantage Securities
Guarantor Obligations [Line Items]
Weighted-average remaining maturity	1 year 2 months 12 days	2 years

XML

Guarantees and Commitments - Schedule of Long-Term Standby Purchase Commitments (Details) - Long-Term Standby Purchase Commitments - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2023	Dec. 31, 2022
Guarantor Obligations [Line Items]
Maximum principal amount	$ 3,613,934	$ 3,423,155
Weighted-average remaining maturity	14 years 8 months 12 days	15 years 3 months 18 days
Guarantee and commitment obligation
Guarantor Obligations [Line Items]
Guarantee and commitment obligation	$ 41,554	$ 40,121

XML

Guarantees and Commitments - Reserve For Losses (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Jun. 30, 2023	Dec. 31, 2022	Sep. 30, 2022	Jun. 30, 2022	Dec. 31, 2021
Guarantor Obligations [Line Items]
Reserve for losses	$ 1,660		$ 1,433
Agricultural Finance
Guarantor Obligations [Line Items]
Reserve for losses	1,412	$ 1,471	819	$ 743	$ 882	$ 1,068
Rural Infrastructure Finance
Guarantor Obligations [Line Items]
Reserve for losses	$ 248	$ 234	$ 614	$ 767	$ 795	$ 882

XML

Guarantees and Commitments - Changes in Reserve for Losses (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Beginning Balance			$ 1,433
(Release of)/provision for losses	$ (45)	$ (167)	227	$ (440)
Ending Balance	1,660		1,660
Agricultural Finance
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Beginning Balance	1,471	882	819	1,068
(Release of)/provision for losses	(59)	(139)	593	(325)
Ending Balance	1,412	743	1,412	743
Rural Infrastructure Finance
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Beginning Balance	234	795	614	882
(Release of)/provision for losses	14	(28)	(366)	(115)
Ending Balance	$ 248	$ 767	$ 248	$ 767

XML

Guarantees and Commitments - Unpaid Principal Balances by Delinquency Status (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Guarantor Obligations [Line Items]
Total	$ 9,130,933	$ 9,008,979
Agricultural Finance
Guarantor Obligations [Line Items]
Total	3,867,746	3,714,184
Current
Guarantor Obligations [Line Items]
Total	10,885,584	10,459,282
Current | Agricultural Finance
Guarantor Obligations [Line Items]
Total	3,856,137	3,698,131
Total Past Due
Guarantor Obligations [Line Items]
Total	27,712	11,598
Total Past Due | Agricultural Finance
Guarantor Obligations [Line Items]
Total	11,609	16,053
30-59 Days
Guarantor Obligations [Line Items]
Total	15,652	10,066
30-59 Days | Agricultural Finance
Guarantor Obligations [Line Items]
Total	5,196	11,614
60-89 Days
Guarantor Obligations [Line Items]
Total	5,321	392
60-89 Days | Agricultural Finance
Guarantor Obligations [Line Items]
Total	3,573	622
90 Days and Greater
Guarantor Obligations [Line Items]
Total	6,739	1,140
90 Days and Greater | Agricultural Finance
Guarantor Obligations [Line Items]
Total	2,840	3,817
Agricultural Finance | Agricultural Finance
Guarantor Obligations [Line Items]
Total	3,380,229	3,190,992
Agricultural Finance | Current
Guarantor Obligations [Line Items]
Total	7,542,871	7,438,016
Agricultural Finance | Current | Agricultural Finance
Guarantor Obligations [Line Items]
Total	3,368,620	3,174,939
Agricultural Finance | Total Past Due
Guarantor Obligations [Line Items]
Total	27,712	11,598
Agricultural Finance | Total Past Due | Agricultural Finance
Guarantor Obligations [Line Items]
Total	11,609	16,053
Agricultural Finance | 30-59 Days
Guarantor Obligations [Line Items]
Total	15,652	10,066
Agricultural Finance | 30-59 Days | Agricultural Finance
Guarantor Obligations [Line Items]
Total	5,196	11,614
Agricultural Finance | 60-89 Days
Guarantor Obligations [Line Items]
Total	5,321	392
Agricultural Finance | 60-89 Days | Agricultural Finance
Guarantor Obligations [Line Items]
Total	3,573	622
Agricultural Finance | 90 Days and Greater
Guarantor Obligations [Line Items]
Total	6,739	1,140
Agricultural Finance | 90 Days and Greater | Agricultural Finance
Guarantor Obligations [Line Items]
Total	2,840	3,817
Rural Infrastructure Finance
Guarantor Obligations [Line Items]
Total	3,342,713	3,021,266
Rural Infrastructure Finance | Rural Infrastructure Finance
Guarantor Obligations [Line Items]
Total	487,517	523,192
Rural Infrastructure Finance | Current
Guarantor Obligations [Line Items]
Total	3,342,713	3,021,266
Rural Infrastructure Finance | Current | Rural Infrastructure Finance
Guarantor Obligations [Line Items]
Total	487,517	523,192
Rural Infrastructure Finance | Total Past Due
Guarantor Obligations [Line Items]
Total	0	0
Rural Infrastructure Finance | Total Past Due | Rural Infrastructure Finance
Guarantor Obligations [Line Items]
Total	0	0
Rural Infrastructure Finance | 30-59 Days
Guarantor Obligations [Line Items]
Total	0	0
Rural Infrastructure Finance | 30-59 Days | Rural Infrastructure Finance
Guarantor Obligations [Line Items]
Total	0	0
Rural Infrastructure Finance | 60-89 Days
Guarantor Obligations [Line Items]
Total	0	0
Rural Infrastructure Finance | 60-89 Days | Rural Infrastructure Finance
Guarantor Obligations [Line Items]
Total	0	0
Rural Infrastructure Finance | 90 Days and Greater
Guarantor Obligations [Line Items]
Total	0	0
Rural Infrastructure Finance | 90 Days and Greater | Rural Infrastructure Finance
Guarantor Obligations [Line Items]
Total	$ 0	$ 0

XML

Guarantees and Commitments - Credit Quality Indicators (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022
Total
Total	$ 9,130,933		$ 9,130,933		$ 9,008,979
Agricultural Finance
Total
Current period charge-offs	0	$ 0	0	$ 84
Rural Infrastructure Finance
Year One
Total	450,241		450,241		741,021
Current period charge-offs	0	0	0	0
Year Two
Total	724,129		724,129		220,420
Current period charge-offs	0	0	0	0
Year Three
Total	189,385		189,385		629,223
Current period charge-offs	0	0	0	0
Year Four
Total	598,689		598,689		739,270
Current period charge-offs	0	0	0	0
Year Five
Total	711,794		711,794		7,932
Current period charge-offs	0	0	0	0
Prior
Total	610,062		610,062		649,830
Current period charge-offs	0	0	0	0
Revolving Loans - Amortized Cost Basis
Total	58,413		58,413		33,570
Current period charge-offs	0	0	0	0
Total
Total	3,342,713		3,342,713		3,021,266
Current period charge-offs	0	0	0	0
Acceptable | Rural Infrastructure Finance
Year One
Total	450,241		450,241		741,021
Year Two
Total	694,635		694,635		220,420
Year Three
Total	189,385		189,385		629,223
Year Four
Total	598,689		598,689		739,270
Year Five
Total	711,794		711,794		7,932
Prior
Total	610,062		610,062		649,830
Revolving Loans - Amortized Cost Basis
Total	58,413		58,413		33,570
Total
Total	3,313,219		3,313,219		3,021,266
Special mention | Rural Infrastructure Finance
Year One
Total	0		0		0
Year Two
Total	0		0		0
Year Three
Total	0		0		0
Year Four
Total	0		0		0
Year Five
Total	0		0		0
Prior
Total	0		0		0
Revolving Loans - Amortized Cost Basis
Total	0		0		0
Total
Total	0		0		0
Substandard | Rural Infrastructure Finance
Year One
Total	0		0		0
Year Two
Total	29,494		29,494		0
Year Three
Total	0		0		0
Year Four
Total	0		0		0
Year Five
Total	0		0		0
Prior
Total	0		0		0
Revolving Loans - Amortized Cost Basis
Total	0		0		0
Total
Total	29,494		29,494		0
Rural Infrastructure Finance:
Total
Total	3,867,746		3,867,746		3,714,184
Rural Infrastructure Finance: | Agricultural Finance
Year One
Total	148,802		148,802		202,998
Current period charge-offs	0		0	0
Year Two
Total	246,258		246,258		497,588
Current period charge-offs	0		0	0
Year Three
Total	515,135		515,135		537,752
Current period charge-offs	0		0	0
Year Four
Total	536,180		536,180		254,293
Current period charge-offs	0		0	0
Year Five
Total	273,798		273,798		212,165
Current period charge-offs	0		0	0
Prior
Total	1,295,441		1,295,441		1,183,111
Current period charge-offs	0		0	0
Revolving Loans - Amortized Cost Basis
Total	364,615		364,615		303,085
Current period charge-offs	0		0	0
Total
Total	3,380,229		3,380,229		3,190,992
Current period charge-offs	0		0	0
Rural Infrastructure Finance: | Acceptable | Agricultural Finance
Year One
Total	148,802		148,802		202,998
Year Two
Total	243,690		243,690		496,269
Year Three
Total	513,841		513,841		535,798
Year Four
Total	535,172		535,172		254,293
Year Five
Total	272,257		272,257		207,379
Prior
Total	1,228,548		1,228,548		1,107,834
Revolving Loans - Amortized Cost Basis
Total	362,825		362,825		296,508
Total
Total	3,305,135		3,305,135		3,101,079
Rural Infrastructure Finance: | Special mention | Agricultural Finance
Year One
Total	0		0		0
Year Two
Total	2,568		2,568		1,319
Year Three
Total	1,294		1,294		1,778
Year Four
Total	877		877		0
Year Five
Total	0		0		1,198
Prior
Total	39,657		39,657		42,680
Revolving Loans - Amortized Cost Basis
Total	527		527		3,205
Total
Total	44,923		44,923		50,180
Rural Infrastructure Finance: | Substandard | Agricultural Finance
Year One
Total	0		0		0
Year Two
Total	0		0		0
Year Three
Total	0		0		176
Year Four
Total	131		131		0
Year Five
Total	1,541		1,541		3,588
Prior
Total	27,236		27,236		32,597
Revolving Loans - Amortized Cost Basis
Total	1,263		1,263		3,372
Total
Total	30,171		30,171		39,733
Long-Term Standby Purchase Commitments | Rural Infrastructure Finance
Year One
Total	0		0		0
Current period charge-offs	0	0	0	0
Year Two
Total	0		0		0
Current period charge-offs	0	0	0	0
Year Three
Total	0		0		0
Current period charge-offs	0	0	0	0
Year Four
Total	0		0		0
Current period charge-offs	0	0	0	0
Year Five
Total	0		0		0
Current period charge-offs	0	0	0	0
Prior
Total	426,504		426,504		470,659
Current period charge-offs	0	0	0	0
Revolving Loans - Amortized Cost Basis
Total	61,013		61,013		52,533
Current period charge-offs	0	0	0	0
Total
Total	487,517		487,517		523,192
Current period charge-offs	0	$ 0	0	$ 0
Long-Term Standby Purchase Commitments | Acceptable | Rural Infrastructure Finance
Year One
Total	0		0		0
Year Two
Total	0		0		0
Year Three
Total	0		0		0
Year Four
Total	0		0		0
Year Five
Total	0		0		0
Prior
Total	426,504		426,504		470,659
Revolving Loans - Amortized Cost Basis
Total	61,013		61,013		52,533
Total
Total	487,517		487,517		523,192
Long-Term Standby Purchase Commitments | Special mention | Rural Infrastructure Finance
Year One
Total	0		0		0
Year Two
Total	0		0		0
Year Three
Total	0		0		0
Year Four
Total	0		0		0
Year Five
Total	0		0		0
Prior
Total	0		0		0
Revolving Loans - Amortized Cost Basis
Total	0		0		0
Total
Total	0		0		0
Long-Term Standby Purchase Commitments | Substandard | Rural Infrastructure Finance
Year One
Total	0		0		0
Year Two
Total	0		0		0
Year Three
Total	0		0		0
Year Four
Total	0		0		0
Year Five
Total	0		0		0
Prior
Total	0		0		0
Revolving Loans - Amortized Cost Basis
Total	0		0		0
Total
Total	$ 0		$ 0		$ 0

XML

Notes Payable - Narrative (Details) - USD ($)	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Debt Instrument [Line Items]
Medium term notes called during the period	$ 111,000,000	$ 26,000,000
Maximum borrowing capacity from U.S. Treasury	$ 1,500,000,000
Discount Notes
Debt Instrument [Line Items]
Maturities of notes (in years)	1 year
Medium-term notes | Minimum
Debt Instrument [Line Items]
Maturities of notes (in years)	6 months
Medium-term notes | Maximum
Debt Instrument [Line Items]
Maturities of notes (in years)	25 years
Discount notes
Debt Instrument [Line Items]
Maximum amount of discount notes outstanding at any month end	$ 1,500,000,000	$ 2,200,000,000

XML

Notes Payable - Borrowings (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2023	Dec. 31, 2022
Due within one year:
Outstanding, Amount	$ 7,956,215	$ 8,034,175
Outstanding, Weighted - average rate (as a percent)	3.30%	2.31%
Medium-term notes due in:
Two years	$ 5,231,168
Three years	3,243,230
Four years	3,297,724
Five years	2,306,430
Thereafter	3,567,720
Total due after one year	17,646,272
Total principal net of discounts	25,602,487	$ 25,000,199
Hedging adjustments	(478,942)	(531,086)
Total	$ 25,123,545	24,469,113
Weighted - average rate (as a percent)	2.90%
Total weighted - average rate (as a percent)	3.03%
Two years
Medium-term notes due in:
Weighted - average rate (as a percent)	3.05%
Three years
Medium-term notes due in:
Weighted - average rate (as a percent)	2.21%
Four years
Medium-term notes due in:
Weighted - average rate (as a percent)	2.64%
Five years
Medium-term notes due in:
Weighted - average rate (as a percent)	4.07%
Thereafter
Medium-term notes due in:
Weighted - average rate (as a percent)	2.80%
Discount notes
Due within one year:
Outstanding, Amount	$ 1,535,856	$ 565,578
Outstanding, Weighted - average rate (as a percent)	5.30%	3.91%
Average Outstanding, Amount	$ 942,297	$ 1,325,026
Average Outstanding, Weighted - average rate (as a percent)	4.92%	0.96%
Medium-term notes
Due within one year:
Outstanding, Amount	$ 947,466	$ 2,547,733
Outstanding, Weighted - average rate (as a percent)	4.75%	3.54%
Average Outstanding, Amount	$ 2,085,249	$ 1,442,932
Average Outstanding, Weighted - average rate (as a percent)	4.00%	2.11%
Medium-term notes due in:
Two years		$ 4,072,740
Three years		3,506,480
Four years		2,967,625
Five years		2,361,197
Thereafter		4,057,982
Total due after one year		$ 16,966,024
Weighted - average rate (as a percent)		2.15%
Total weighted - average rate (as a percent)		2.20%
Medium-term notes | Two years
Medium-term notes due in:
Weighted - average rate (as a percent)		1.71%
Medium-term notes | Three years
Medium-term notes due in:
Weighted - average rate (as a percent)		2.10%
Medium-term notes | Four years
Medium-term notes due in:
Weighted - average rate (as a percent)		1.44%
Medium-term notes | Five years
Medium-term notes due in:
Weighted - average rate (as a percent)		3.12%
Medium-term notes | Thereafter
Medium-term notes due in:
Weighted - average rate (as a percent)		2.60%
Current portion of medium-term notes
Due within one year:
Outstanding, Amount	$ 5,472,893	$ 4,920,864
Outstanding, Weighted - average rate (as a percent)	2.49%	1.49%

XML

Notes Payable - Callable Medium-Term Notes (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Debt Instrument [Line Items]
2025	$ 5,231,168
2026	3,243,230
2027	3,297,724
Total principal net of discounts	$ 25,602,487	$ 25,000,199
Weighted-Average Rate	2.90%
Year one
Debt Instrument [Line Items]
Weighted-Average Rate	2.62%
Year two
Debt Instrument [Line Items]
Weighted-Average Rate	2.60%
Year three
Debt Instrument [Line Items]
Weighted-Average Rate	1.81%
Year four
Debt Instrument [Line Items]
Weighted-Average Rate	3.14%
Call Option
Debt Instrument [Line Items]
2024	$ 816,830
2025	664,046
2026	1,012,989
2027	560,204
Thereafter	1,161,379
Total principal net of discounts	$ 4,215,448
Weighted-Average Rate	2.45%
Call Option | Year one
Debt Instrument [Line Items]
Weighted-Average Rate	3.66%
Call Option | Year two
Debt Instrument [Line Items]
Weighted-Average Rate	2.33%
Call Option | Year three
Debt Instrument [Line Items]
Weighted-Average Rate	1.57%
Call Option | Year four
Debt Instrument [Line Items]
Weighted-Average Rate	2.27%
Call Option | Thereafter
Debt Instrument [Line Items]
Weighted-Average Rate	2.51%

XML

Notes Payable - Earliest Interest Reset Date of Borrowing Outstanding (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Debt Instrument [Line Items]
2023	$ 5,468,108
2024	5,454,586
2025	4,222,333
2026	3,319,847
2027	2,573,406
Thereafter	4,564,207
Total principal net of discounts	$ 25,602,487
Short-term debt, weighted average rate (as a percent)	3.30%	2.31%
Weighted - average rate (as a percent)	2.90%
Total weighted - average rate (as a percent)	3.03%
Due within one year
Debt Instrument [Line Items]
Short-term debt, weighted average rate (as a percent)	4.57%
Year one
Debt Instrument [Line Items]
Weighted - average rate (as a percent)	2.62%
Year two
Debt Instrument [Line Items]
Weighted - average rate (as a percent)	2.60%
Year three
Debt Instrument [Line Items]
Weighted - average rate (as a percent)	1.81%
Year four
Debt Instrument [Line Items]
Weighted - average rate (as a percent)	3.14%
Thereafter
Debt Instrument [Line Items]
Weighted - average rate (as a percent)	2.87%

XML

Equity (Details) - USD ($)		3 Months Ended
	Sep. 30, 2023	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023	Dec. 31, 2022	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Mar. 31, 2020	Mar. 31, 2021	Mar. 14, 2019	Sep. 30, 2015
Class of Stock [Line Items]
Common stock dividends per common share (in dollars per share)		$ 1.10	$ 1.10	$ 1.10	$ 0.95	$ 0.95	$ 0.95	$ 0.95
Capital required for capital adequacy	$ 840,100,000	$ 840,100,000			$ 805,900,000
Capital	1,400,000,000	1,400,000,000			1,300,000,000
Excess capital	$ 581,100,000	$ 581,100,000			$ 516,900,000
Class C non-voting common stock
Class of Stock [Line Items]
Stock authorized for repurchase											$ 10,000,000	$ 25,000,000
Shares repurchased (in shares)	673,000	0							4,000
Shares repurchased	$ 19,800,000								$ 200,000
Remaining authorized amount for repurchase										$ 9,800,000

XML

Fair Value Disclosures - Fair Value Measurements, Recurring and Nonrecurring (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Assets:
Financial derivatives	$ 28,855	$ 37,409
Liabilities:
Financial derivatives	188,362	175,326
Investment securities:
Assets:
Fair Value	4,873,414	$ 4,579,564
Farmer Mac Guaranteed Securities
Assets:
Fair Value	$ 5,058,697
Level 3
Liabilities:
Percent of level three fair value assets and liabilities	18.00%	28.00%
Financial instruments level three percent	50.00%	62.00%
Recurring
Assets:
Financial derivatives	$ 28,855	$ 37,409
Guarantee Asset	5,963	4,467
Total Assets at fair value	9,968,231	12,230,433
Liabilities:
Financial derivatives	188,362	175,326
Total Liabilities at fair value	188,362	175,326
Recurring | USDA Securities:
Assets:
Trading	1,302	1,767
Recurring | Investment securities:
Assets:
Fair Value	4,873,414	4,579,564
Recurring | Farmer Mac Guaranteed Securities
Assets:
Fair Value	5,058,697	7,607,226
Recurring | Level 1
Assets:
Financial derivatives	81	0
Guarantee Asset	0	0
Total Assets at fair value	1,002,539	1,119,611
Liabilities:
Financial derivatives	12	142
Total Liabilities at fair value	12	142
Recurring | Level 1 | USDA Securities:
Assets:
Trading	0	0
Recurring | Level 1 | Investment securities:
Assets:
Fair Value	1,002,458	1,119,611
Recurring | Level 1 | Farmer Mac Guaranteed Securities
Assets:
Fair Value	0	0
Recurring | Level 2
Assets:
Financial derivatives	28,774	37,409
Guarantee Asset	0	0
Total Assets at fair value	3,880,697	3,478,335
Liabilities:
Financial derivatives	188,350	175,184
Total Liabilities at fair value	188,350	175,184
Recurring | Level 2 | USDA Securities:
Assets:
Trading	0	0
Recurring | Level 2 | Investment securities:
Assets:
Fair Value	3,851,923	3,440,926
Recurring | Level 2 | Farmer Mac Guaranteed Securities
Assets:
Fair Value	0	0
Recurring | Level 3
Assets:
Financial derivatives	0	0
Guarantee Asset	5,963	4,467
Total Assets at fair value	5,084,995	7,632,487
Liabilities:
Financial derivatives	0	0
Total Liabilities at fair value	0	0
Recurring | Level 3 | USDA Securities:
Assets:
Trading	1,302	1,767
Recurring | Level 3 | Investment securities:
Assets:
Fair Value	19,033	19,027
Recurring | Level 3 | Farmer Mac Guaranteed Securities
Assets:
Fair Value	5,058,697	7,607,226
AgVantage | Recurring | Farmer Mac Guaranteed Securities
Assets:
Fair Value	5,048,708	7,599,379
AgVantage | Recurring | Level 1 | Farmer Mac Guaranteed Securities
Assets:
Fair Value	0	0
AgVantage | Recurring | Level 2 | Farmer Mac Guaranteed Securities
Assets:
Fair Value	0	0
AgVantage | Recurring | Level 3 | Farmer Mac Guaranteed Securities
Assets:
Fair Value	5,048,708	7,599,379
Farmer Mac Guaranteed USDA Securities | Recurring | Farmer Mac Guaranteed Securities
Assets:
Fair Value	9,989	7,847
Farmer Mac Guaranteed USDA Securities | Recurring | Level 1 | Farmer Mac Guaranteed Securities
Assets:
Fair Value	0	0
Farmer Mac Guaranteed USDA Securities | Recurring | Level 2 | Farmer Mac Guaranteed Securities
Assets:
Fair Value	0	0
Farmer Mac Guaranteed USDA Securities | Recurring | Level 3 | Farmer Mac Guaranteed Securities
Assets:
Fair Value	9,989	7,847
USDA Securities | Recurring | USDA Securities:
Assets:
Trading	1,302	1,767
USDA Securities | Recurring | Level 1 | USDA Securities:
Assets:
Trading	0	0
USDA Securities | Recurring | Level 2 | USDA Securities:
Assets:
Trading	0	0
USDA Securities | Recurring | Level 3 | USDA Securities:
Assets:
Trading	1,302	1,767
Floating Interest Rate | Floating rate auction-rate certificates backed by Government guaranteed student loans
Assets:
Fair Value	19,033	19,027
Floating Interest Rate | Guaranteed mortgage-backed securities
Assets:
Fair Value	2,465,545	2,392,540
Floating Interest Rate | Fixed rate U.S. Treasuries
Assets:
Fair Value	50,011
Floating Interest Rate | Recurring | Floating rate auction-rate certificates backed by Government guaranteed student loans
Assets:
Fair Value	19,033	19,027
Floating Interest Rate | Recurring | Guaranteed mortgage-backed securities
Assets:
Fair Value	2,465,545	2,392,540
Floating Interest Rate | Recurring | Floating rate U.S. Treasuries
Assets:
Fair Value	50,011
Floating Interest Rate | Recurring | Level 1 | Floating rate auction-rate certificates backed by Government guaranteed student loans
Assets:
Fair Value	0	0
Floating Interest Rate | Recurring | Level 1 | Guaranteed mortgage-backed securities
Assets:
Fair Value	0	0
Floating Interest Rate | Recurring | Level 1 | Floating rate U.S. Treasuries
Assets:
Fair Value	50,011
Floating Interest Rate | Recurring | Level 2 | Floating rate auction-rate certificates backed by Government guaranteed student loans
Assets:
Fair Value	0	0
Floating Interest Rate | Recurring | Level 2 | Guaranteed mortgage-backed securities
Assets:
Fair Value	2,465,545	2,392,540
Floating Interest Rate | Recurring | Level 2 | Floating rate U.S. Treasuries
Assets:
Fair Value	0
Floating Interest Rate | Recurring | Level 3 | Floating rate auction-rate certificates backed by Government guaranteed student loans
Assets:
Fair Value	19,033	19,027
Floating Interest Rate | Recurring | Level 3 | Guaranteed mortgage-backed securities
Assets:
Fair Value	0	0
Floating Interest Rate | Recurring | Level 3 | Floating rate U.S. Treasuries
Assets:
Fair Value	0
Fixed Interest Rate | Guaranteed mortgage-backed securities
Assets:
Fair Value	1,386,378	1,048,386
Fixed Interest Rate | Fixed rate U.S. Treasuries
Assets:
Fair Value	952,447	1,119,611
Fixed Interest Rate | Recurring | Guaranteed mortgage-backed securities
Assets:
Fair Value	1,386,378	1,048,386
Fixed Interest Rate | Recurring | Fixed rate U.S. Treasuries
Assets:
Fair Value	952,447	1,119,611
Fixed Interest Rate | Recurring | Level 1 | Guaranteed mortgage-backed securities
Assets:
Fair Value	0	0
Fixed Interest Rate | Recurring | Level 1 | Fixed rate U.S. Treasuries
Assets:
Fair Value	952,447	1,119,611
Fixed Interest Rate | Recurring | Level 2 | Guaranteed mortgage-backed securities
Assets:
Fair Value	1,386,378	1,048,386
Fixed Interest Rate | Recurring | Level 2 | Fixed rate U.S. Treasuries
Assets:
Fair Value	0	0
Fixed Interest Rate | Recurring | Level 3 | Guaranteed mortgage-backed securities
Assets:
Fair Value	0	0
Fixed Interest Rate | Recurring | Level 3 | Fixed rate U.S. Treasuries
Assets:
Fair Value	$ 0	$ 0

XML

Fair Value Disclosures - Unobservable Input Reconciliation (Details) - USD ($) $ in Thousands		3 Months Ended		9 Months Ended
	Jul. 01, 2023	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair Value, Asset, Recurring Basis, Unobservable Input Reconciliation, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration]		Net Income	Net Income	Net Income	Net Income
Fair Value, Asset, Recurring Basis, Unobservable Input Reconciliation, Asset, Gain (Loss), Statement of Other Comprehensive Income or Comprehensive Income [Extensible Enumeration]		Comprehensive Income (Loss), Net of Tax, Attributable to Parent	Comprehensive Income (Loss), Net of Tax, Attributable to Parent	Comprehensive Income (Loss), Net of Tax, Attributable to Parent	Comprehensive Income (Loss), Net of Tax, Attributable to Parent
Level 3 | Recurring
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning Balance	$ 7,770,126	$ 7,770,126	$ 6,477,184	$ 7,632,487	$ 6,358,451
Purchases		100,000	1,370,000	1,639,650	2,722,750
Settlements		(7,172)	(628,211)	(1,407,702)	(1,440,110)
Allowance for Losses		134	0	179	(331)
Realized and unrealized (losses)/gains included in Income		(106,203)	(205,206)	(114,431)	(565,190)
Unrealized gains/(losses) included in Other Comprehensive Income		12,206	(13,979)	18,908	(75,782)
Transfers Out		(2,684,096)		(2,684,096)
Ending Balance		5,084,995	6,999,788	5,084,995	6,999,788
Floating rate auction-rate certificates backed by Government guaranteed student loans | Floating Interest Rate | Level 3 | Recurring
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning Balance	19,032	19,032	19,061	19,027	19,254
Purchases		0	0	0	0
Settlements		0	0	0	0
Allowance for Losses		1	11	6	14
Realized and unrealized (losses)/gains included in Income		0	0	0	0
Unrealized gains/(losses) included in Other Comprehensive Income		0	171	0	(25)
Transfers Out		0		0
Ending Balance		19,033	19,243	19,033	19,243
Available-for-sale securities | Level 3 | Recurring
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning Balance	19,032	19,032	19,061	19,027	19,254
Purchases		0	0	0	0
Settlements		0	0	0	0
Allowance for Losses		1	11	6	14
Realized and unrealized (losses)/gains included in Income		0	0	0	0
Unrealized gains/(losses) included in Other Comprehensive Income		0	171	0	(25)
Transfers Out		0		0
Ending Balance		19,033	19,243	19,033	19,243
Farmer Mac Guaranteed Securities | Level 3 | Recurring
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning Balance	7,745,415	7,745,415	6,450,212	7,607,226	6,328,559
Purchases		100,000	1,370,000	1,639,650	2,722,750
Settlements		(7,044)	(627,599)	(1,406,717)	(1,436,963)
Allowance for Losses		133	(11)	173	(345)
Realized and unrealized (losses)/gains included in Income		(107,917)	(204,450)	(116,447)	(564,242)
Unrealized gains/(losses) included in Other Comprehensive Income		12,206	(14,150)	18,908	(75,757)
Transfers Out		(2,684,096)		(2,684,096)
Ending Balance		5,058,697	6,974,002	5,058,697	6,974,002
Farmer Mac Guaranteed Securities | Level 3 | Recurring | AgVantage Securities
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning Balance	7,737,810	7,737,810	6,440,396	7,599,379	6,316,145
Purchases		100,000	1,370,000	1,639,650	2,722,750
Settlements		(6,875)	(627,131)	(1,405,674)	(1,435,758)
Allowance for Losses		133	(11)	173	(345)
Realized and unrealized (losses)/gains included in Income		(107,917)	(204,450)	(116,447)	(564,242)
Unrealized gains/(losses) included in Other Comprehensive Income		9,653	(13,043)	15,723	(72,789)
Transfers Out	(2,700,000)	(2,684,096)		(2,684,096)
Ending Balance		5,048,708	6,965,761	5,048,708	6,965,761
Farmer Mac Guaranteed Securities | Level 3 | Recurring | Farmer Mac Guaranteed USDA Securities
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning Balance	7,605	7,605	9,816	7,847	12,414
Purchases		0	0	0	0
Settlements		(169)	(468)	(1,043)	(1,205)
Allowance for Losses		0	0	0	0
Realized and unrealized (losses)/gains included in Income		0	0	0	0
Unrealized gains/(losses) included in Other Comprehensive Income		2,553	(1,107)	3,185	(2,968)
Transfers Out		0		0
Ending Balance		9,989	8,241	9,989	8,241
USDA Securities: | Level 3 | Recurring
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning Balance	1,348	1,348	2,275	1,767	4,401
Purchases		0	0	0	0
Settlements		(44)	(383)	(479)	(2,475)
Allowance for Losses		0	0	0	0
Realized and unrealized (losses)/gains included in Income		(2)	(41)	14	(75)
Unrealized gains/(losses) included in Other Comprehensive Income		0	0	0	0
Transfers Out		0		0
Ending Balance		1,302	1,851	1,302	1,851
Guarantee and commitment obligations: | Level 3 | Recurring
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning Balance	4,331	4,331	5,636	4,467	6,237
Purchases		0	0	0	0
Settlements		(84)	(229)	(506)	(672)
Allowance for Losses		0	0	0	0
Realized and unrealized (losses)/gains included in Income		1,716	(715)	2,002	(873)
Unrealized gains/(losses) included in Other Comprehensive Income		0	0	0	0
Transfers Out		0		0
Ending Balance		5,963	4,692	5,963	4,692
Guarantee and commitment obligations: | Level 3 | Recurring | Guarantee Asset
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning Balance	$ 4,331	4,331	5,636	4,467	6,237
Purchases		0	0	0	0
Settlements		(84)	(229)	(506)	(672)
Allowance for Losses		0	0	0	0
Realized and unrealized (losses)/gains included in Income		1,716	(715)	2,002	(873)
Unrealized gains/(losses) included in Other Comprehensive Income		0	0	0	0
Transfers Out		0		0
Ending Balance		$ 5,963	$ 4,692	$ 5,963	$ 4,692

XML

Fair Value Disclosures - Quantitative Information (Details) $ in Thousands	Sep. 30, 2023 USD ($)	Dec. 31, 2022 USD ($)
Farmer Mac Guaranteed Securities
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Fair Value	$ 5,058,697
Floating Interest Rate | Floating rate auction-rate certificates backed by Government guaranteed student loans
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Fair Value	19,033	$ 19,027
Recurring
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Guarantee Asset	5,963	4,467
Recurring | Farmer Mac Guaranteed Securities
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Fair Value	5,058,697	7,607,226
Recurring | Floating Interest Rate | Floating rate auction-rate certificates backed by Government guaranteed student loans
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Fair Value	19,033	19,027
Recurring | Level 3
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Guarantee Asset	5,963	4,467
Recurring | Level 3 | Farmer Mac Guaranteed Securities
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Fair Value	5,058,697	7,607,226
Recurring | Level 3 | Floating Interest Rate | Floating rate auction-rate certificates backed by Government guaranteed student loans
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Fair Value	19,033	19,027
Farmer Mac Guaranteed Securities | Farmer Mac Guaranteed Securities
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Fair Value	10,000	7,800
USDA Securities: | Recurring
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Trading	1,302	1,767
USDA Securities: | Recurring | Level 3
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Trading	1,302	1,767
AgVantage Securities | Recurring | Farmer Mac Guaranteed Securities
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Fair Value	5,048,708	7,599,379
AgVantage Securities | Recurring | Level 3 | Farmer Mac Guaranteed Securities
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Fair Value	5,048,708	7,599,379
Farmer Mac Guaranteed USDA Securities | Recurring | Farmer Mac Guaranteed Securities
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Fair Value	9,989	7,847
Farmer Mac Guaranteed USDA Securities | Recurring | Level 3 | Farmer Mac Guaranteed Securities
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Fair Value	9,989	7,847
USDA Securities | USDA Securities: | Recurring
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Trading	1,302	1,767
USDA Securities | USDA Securities: | Recurring | Level 3
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Trading	$ 1,302	$ 1,767
Range of broker quotes | Minimum | Floating rate auction-rate certificates backed by Government guaranteed student loans | Indicative bids | Recurring | Level 3
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Investment securities, measurement input	0.968	0.968
Range of broker quotes | Maximum | Floating rate auction-rate certificates backed by Government guaranteed student loans | Indicative bids | Recurring | Level 3
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Investment securities, measurement input	0.968	0.968
Range of broker quotes | Weighted Average | Floating rate auction-rate certificates backed by Government guaranteed student loans | Indicative bids | Recurring | Level 3
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Investment securities, measurement input	0.968	0.968
Discount rate | Minimum | Discounted cash flow | Recurring | Level 3
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Guarantee asset, measurement input	0.085	0.054
Discount rate | Minimum | AgVantage Securities | Farmer Mac Guaranteed Securities | Discounted cash flow | Recurring | Level 3
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Investment securities, measurement input	0.054	0.047
Discount rate | Minimum | Farmer Mac Guaranteed USDA Securities | Farmer Mac Guaranteed Securities | Discounted cash flow | Recurring | Level 3
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Investment securities, measurement input	0.085	0.048
Discount rate | Minimum | USDA Securities | USDA Securities: | Discounted cash flow | Recurring | Level 3
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
USDA securities, measurement input	0.059	0.051
Discount rate | Maximum | Discounted cash flow | Recurring | Level 3
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Guarantee asset, measurement input		0.059
Discount rate | Maximum | AgVantage Securities | Farmer Mac Guaranteed Securities | Discounted cash flow | Recurring | Level 3
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Investment securities, measurement input	0.060	0.061
Discount rate | Maximum | Farmer Mac Guaranteed USDA Securities | Farmer Mac Guaranteed Securities | Discounted cash flow | Recurring | Level 3
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Investment securities, measurement input		0.053
Discount rate | Maximum | USDA Securities | USDA Securities: | Discounted cash flow | Recurring | Level 3
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
USDA securities, measurement input	0.061	0.057
Discount rate | Weighted Average | Discounted cash flow | Recurring | Level 3
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Guarantee asset, measurement input		0.057
Discount rate | Weighted Average | AgVantage Securities | Farmer Mac Guaranteed Securities | Discounted cash flow | Recurring | Level 3
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Investment securities, measurement input	0.057	0.051
Discount rate | Weighted Average | Farmer Mac Guaranteed USDA Securities | Farmer Mac Guaranteed Securities | Discounted cash flow | Recurring | Level 3
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Investment securities, measurement input		0.051
Discount rate | Weighted Average | USDA Securities | USDA Securities: | Discounted cash flow | Recurring | Level 3
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
USDA securities, measurement input	0.060	0.053
CPR | Farmer Mac Guaranteed USDA Securities | Farmer Mac Guaranteed Securities | Discounted cash flow | Recurring | Level 3
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Investment securities, measurement input	0.03	0.08
CPR | Minimum | Discounted cash flow | Recurring | Level 3
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Guarantee asset, measurement input	0.03	0.08
CPR | Minimum | USDA Securities | USDA Securities: | Discounted cash flow | Recurring | Level 3
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
USDA securities, measurement input	0.11	0.19
CPR | Maximum | USDA Securities | USDA Securities: | Discounted cash flow | Recurring | Level 3
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
USDA securities, measurement input	0.11	0.27
CPR | Weighted Average | USDA Securities | USDA Securities: | Discounted cash flow | Recurring | Level 3
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
USDA securities, measurement input	0.11	0.25

XML

Fair Value Disclosures - Summary of Carrying Value and Fair Value (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Financial assets:
Financial derivatives	$ 28,855	$ 37,409
Guarantee and commitment fees receivable	49,809	47,151
Financial liabilities:
Financial derivatives	188,362	175,326
Guarantee and commitment obligation	47,607	46,582
Fair Value
Financial assets:
Cash and cash equivalents	782,318	861,002
Loans	9,718,846	9,666,710
Financial derivatives	28,855	37,409
Guarantee and commitment fees receivable	58,819	50,653
Financial liabilities:
Notes payable	24,224,819	23,591,330
Debt securities of consolidated trusts held by third parties	1,209,757	1,106,837
Financial derivatives	188,362	175,326
Guarantee and commitment obligation	56,617	50,083
Fair Value | Investment securities:
Financial assets:
Marketable securities	4,925,183	4,630,701
Fair Value | Farmer Mac Guaranteed Securities
Financial assets:
Marketable securities	9,170,053	8,573,781
Fair Value | USDA Securities
Financial assets:
Marketable securities	1,933,529	2,099,445
Carrying Amount
Financial assets:
Cash and cash equivalents	782,318	861,002
Loans	10,537,173	10,205,466
Financial derivatives	28,855	37,409
Guarantee and commitment fees receivable	49,809	47,151
Financial liabilities:
Notes payable	25,123,545	24,469,113
Debt securities of consolidated trusts held by third parties	1,334,014	1,181,948
Financial derivatives	188,362	175,326
Guarantee and commitment obligation	47,607	46,582
Carrying Amount | Investment securities:
Financial assets:
Marketable securities	4,924,253	4,628,268
Carrying Amount | Farmer Mac Guaranteed Securities
Financial assets:
Marketable securities	9,216,111	8,628,380
Carrying Amount | USDA Securities
Financial assets:
Marketable securities	$ 2,323,657	$ 2,411,601

XML

Business Segment Reporting - Core Earnings (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023 USD ($)	Sep. 30, 2022 USD ($)	Sep. 30, 2023 USD ($) segment	Sep. 30, 2022 USD ($)	Dec. 31, 2022 USD ($)
Segment Reporting [Abstract]
Number of operating segments | segment			7
Segment Reporting Information, Profit (Loss) [Abstract]
Net interest income	$ 87,643	$ 67,853	$ 245,378	$ 197,305
Guarantee and commitment fees	5,520	2,643	12,942	9,551
Other income/(expense)	3,940	1,382	8,016	23,281
Total revenues	97,103	71,878	266,336	230,137
Release of/(provision for) losses	136	(617)	(1,484)	699
Release of/(provision for) reserve for losses	45	167	(227)	440
Operating expenses	(24,034)	(19,379)	(71,935)	(60,815)
Total non-interest expense	(23,989)	(19,212)	(72,162)	(60,375)
Core earnings before income taxes	73,250	52,049	192,690	170,461
Income tax (expense)/benefit	(15,113)	(10,631)	(40,306)	(35,735)
Core earnings before preferred stock dividends	58,137	41,418	152,384	134,726
Preferred stock dividends	(6,792)	(6,791)	(20,374)	(20,374)
Segment core earnings/(losses)	51,345	34,627	132,010	114,352
Total Assets	28,311,381	26,441,588	28,311,381	26,441,588	$ 27,333,110
Total on- and off-balance sheet program assets at principal balance	27,652,011	25,326,638	27,652,011	25,326,638
Reconciling Adjustments
Segment Reporting Information, Profit (Loss) [Abstract]
Net interest income	0	0	0	0
Less: reconciling adjustments	4,219	2,212	2,949	12,879
Net effective spread	4,219	2,212	2,949	12,879
Guarantee and commitment fees	692	(1,558)	(1,121)	(3,916)
Other income/(expense)	2,884	909	5,484	21,987
Total revenues	7,795	1,563	7,312	30,950
Release of/(provision for) losses	0	0	0	0
Release of/(provision for) reserve for losses	0	0	0	0
Operating expenses	0	0	0	0
Total non-interest expense	0	0	0	0
Core earnings before income taxes	7,795	1,563	7,312	30,950
Income tax (expense)/benefit	(1,638)	(328)	(1,536)	(6,499)
Core earnings before preferred stock dividends	6,157	1,235	5,776	24,451
Preferred stock dividends	0	0	0	0
Segment core earnings/(losses)	6,157	1,235	5,776	24,451
Total Assets	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	25	153	134	686
Farm & Ranch | Operating Segments
Segment Reporting Information, Profit (Loss) [Abstract]
Net interest income	33,735	34,173	102,671	99,197
Less: reconciling adjustments	(1,017)	(830)	(3,100)	(2,910)
Net effective spread	32,718	33,343	99,571	96,287
Guarantee and commitment fees	4,447	3,833	12,960	12,387
Other income/(expense)	807	469	2,216	1,030
Total revenues	37,972	37,645	114,747	109,704
Release of/(provision for) losses	13	93	136	440
Release of/(provision for) reserve for losses	58	139	(594)	324
Operating expenses	0	0	0	0
Total non-interest expense	58	139	(594)	324
Core earnings before income taxes	38,043	37,877	114,289	110,468
Income tax (expense)/benefit	(7,989)	(7,953)	(24,001)	(23,196)
Core earnings before preferred stock dividends	30,054	29,924	90,288	87,272
Preferred stock dividends	0	0	0	0
Segment core earnings/(losses)	30,054	29,924	90,288	87,272
Total Assets	14,660,371	14,113,686	14,660,371	14,113,686
Total on- and off-balance sheet program assets at principal balance	18,461,835	17,199,347	18,461,835	17,199,347
Corporate AgFinance
Segment Reporting Information, Profit (Loss) [Abstract]
Release of/(provision for) losses	3,689	(334)	(947)	(1,524)
Corporate AgFinance | Operating Segments
Segment Reporting Information, Profit (Loss) [Abstract]
Net interest income	8,250	7,600	22,842	21,738
Less: reconciling adjustments	0	0	0	0
Net effective spread	8,250	7,600	22,842	21,738
Guarantee and commitment fees	78	46	193	108
Other income/(expense)	0	4	12	261
Total revenues	8,328	7,650	23,047	22,107
Release of/(provision for) losses	3,694	(333)	(934)	(1,498)
Release of/(provision for) reserve for losses	0	0	0	0
Operating expenses	0	0	0	0
Total non-interest expense	0	0	0	0
Core earnings before income taxes	12,022	7,317	22,113	20,609
Income tax (expense)/benefit	(2,525)	(1,536)	(4,644)	(4,327)
Core earnings before preferred stock dividends	9,497	5,781	17,469	16,282
Preferred stock dividends	0	0	0	0
Segment core earnings/(losses)	9,497	5,781	17,469	16,282
Total Assets	1,619,664	1,558,139	1,619,664	1,558,139
Total on- and off-balance sheet program assets at principal balance	1,741,306	1,634,786	1,741,306	1,634,786
Rural  Utilities | Operating Segments
Segment Reporting Information, Profit (Loss) [Abstract]
Net interest income	6,393	4,253	17,772	11,218
Less: reconciling adjustments	(31)	(33)	(95)	(106)
Net effective spread	6,362	4,220	17,677	11,112
Guarantee and commitment fees	279	309	841	929
Other income/(expense)	0	0	0	0
Total revenues	6,641	4,529	18,518	12,041
Release of/(provision for) losses	(3,504)	(414)	(652)	1,927
Release of/(provision for) reserve for losses	(13)	28	367	116
Operating expenses	0	0	0	0
Total non-interest expense	(13)	28	367	116
Core earnings before income taxes	3,124	4,143	18,233	14,084
Income tax (expense)/benefit	(656)	(869)	(3,829)	(2,956)
Core earnings before preferred stock dividends	2,468	3,274	14,404	11,128
Preferred stock dividends	0	0	0	0
Segment core earnings/(losses)	2,468	3,274	14,404	11,128
Total Assets	6,648,693	5,779,300	6,648,693	5,779,300
Total on- and off-balance sheet program assets at principal balance	7,118,295	6,296,263	7,118,295	6,296,263
Renewable Energy | Operating Segments
Segment Reporting Information, Profit (Loss) [Abstract]
Net interest income	1,150	705	3,108	1,548
Less: reconciling adjustments	0	0	0	0
Net effective spread	1,150	705	3,108	1,548
Guarantee and commitment fees	24	13	69	43
Other income/(expense)	0	0	0	0
Total revenues	1,174	718	3,177	1,591
Release of/(provision for) losses	(66)	26	(38)	(184)
Release of/(provision for) reserve for losses	0	0	0	0
Operating expenses	0	0	0	0
Total non-interest expense	0	0	0	0
Core earnings before income taxes	1,108	744	3,139	1,407
Income tax (expense)/benefit	(233)	(156)	(659)	(295)
Core earnings before preferred stock dividends	875	588	2,480	1,112
Preferred stock dividends	0	0	0	0
Segment core earnings/(losses)	875	588	2,480	1,112
Total Assets	320,572	186,832	320,572	186,832
Total on- and off-balance sheet program assets at principal balance	330,575	196,242	330,575	196,242
Funding | Operating Segments
Segment Reporting Information, Profit (Loss) [Abstract]
Net interest income	37,642	23,913	98,588	67,673
Less: reconciling adjustments	(3,230)	(1,349)	60	(9,863)
Net effective spread	34,412	22,564	98,648	57,810
Guarantee and commitment fees	0	0	0	0
Other income/(expense)	3	0	3	0
Total revenues	34,415	22,564	98,651	57,810
Release of/(provision for) losses	0	0	0	0
Release of/(provision for) reserve for losses	0	0	0	0
Operating expenses	0	0	0	0
Total non-interest expense	0	0	0	0
Core earnings before income taxes	34,415	22,564	98,651	57,810
Income tax (expense)/benefit	(7,226)	(4,739)	(20,716)	(12,141)
Core earnings before preferred stock dividends	27,189	17,825	77,935	45,669
Preferred stock dividends	0	0	0	0
Segment core earnings/(losses)	27,189	17,825	77,935	45,669
Total Assets	0	0	0	0
Total on- and off-balance sheet program assets at principal balance	0	0	0	0
Investments | Operating Segments
Segment Reporting Information, Profit (Loss) [Abstract]
Net interest income	473	(2,791)	397	(4,069)
Less: reconciling adjustments	59	0	186	0
Net effective spread	532	(2,791)	583	(4,069)
Guarantee and commitment fees	0	0	0	0
Other income/(expense)	6	0	17	0
Total revenues	538	(2,791)	600	(4,069)
Release of/(provision for) losses	(1)	11	4	14
Release of/(provision for) reserve for losses	0	0	0	0
Operating expenses	0	0	0	0
Total non-interest expense	0	0	0	0
Core earnings before income taxes	537	(2,780)	604	(4,055)
Income tax (expense)/benefit	(113)	584	(127)	852
Core earnings before preferred stock dividends	424	(2,196)	477	(3,203)
Preferred stock dividends	0	0	0	0
Segment core earnings/(losses)	424	(2,196)	477	(3,203)
Total Assets	4,866,969	4,608,868	4,866,969	4,608,868
Total on- and off-balance sheet program assets at principal balance	0	0	0	0
Corporate | Operating Segments
Segment Reporting Information, Profit (Loss) [Abstract]
Net interest income	0	0	0	0
Less: reconciling adjustments	0	0	0	0
Net effective spread	0	0	0	0
Guarantee and commitment fees	0	0	0	0
Other income/(expense)	240	0	284	3
Total revenues	240	0	284	3
Release of/(provision for) losses	0	0	0	0
Release of/(provision for) reserve for losses	0	0	0	0
Operating expenses	(24,034)	(19,379)	(71,935)	(60,815)
Total non-interest expense	(24,034)	(19,379)	(71,935)	(60,815)
Core earnings before income taxes	(23,794)	(19,379)	(71,651)	(60,812)
Income tax (expense)/benefit	5,267	4,366	15,206	12,827
Core earnings before preferred stock dividends	(18,527)	(15,013)	(56,445)	(47,985)
Preferred stock dividends	(6,792)	(6,791)	(20,374)	(20,374)
Segment core earnings/(losses)	(25,319)	(21,804)	(76,819)	(68,359)
Total Assets	195,112	194,763	195,112	194,763
Total on- and off-balance sheet program assets at principal balance	$ 0	$ 0	$ 0	$ 0