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RELATED PARTY TRANSACTIONS
 12 Months Ended
Dec. 31, 2024
Related Party Transactions [Abstract]  
RELATED PARTY TRANSACTIONS RELATED PARTY TRANSACTIONS
Farmer Mac considers an entity to be a related party if (1) the entity holds at least 5% of a class of Farmer Mac voting common stock or (2) the institution has an affiliation with a Farmer Mac director and conducts material business with Farmer Mac. As provided by Farmer Mac's statutory charter, only banks, insurance companies, and other financial institutions or similar entities may hold Farmer Mac's Class A voting common stock and only institutions of the Farm Credit System may hold Farmer Mac's Class B voting common stock. Farmer Mac's statutory charter also provides that Class A stockholders elect 5 members of Farmer Mac's 15-member board of directors and that Class B stockholders elect 5 members of the board of directors. Farmer Mac generally requires financial institutions to own a requisite amount of common stock, based on the size and type of institution, to participate in the Agricultural Finance line of business. As a result of these requirements, Farmer Mac conducts business with related parties in the normal course of Farmer Mac's business. All related party transactions were conducted with terms and conditions comparable to those available to any other participant in Farmer Mac's lines of business not related to Farmer Mac.
Zions Bancorporation, National Association:

Farmer Mac considers Zions Bancorporation, National Association and its affiliates ("Zions") a related party because Zions owns approximately 31.2% of Farmer Mac's Class A voting common stock. The following transactions occurred between Farmer Mac and Zions during 2024, 2023, and 2022:

Table 3.1
 For the Years Ended December 31,
 202420232022
 (in thousands)
Unpaid Principal Balance:
   Purchases:   
   Loans$173,928 $160,079 $274,517 
   USDA Securities363 231 4,171 
   Sales of Farmer Mac Guaranteed Securities60,192 — 99,643 
 
Outstanding Agricultural Finance mortgage loans purchased and USDA Securities purchased from Zions represented 3.1% of Farmer Mac's outstanding business volume (excluding loans serviced for others) as of both December 31, 2024 and 2023.

Zions retained servicing fees of $11.2 million, $11.2 million, and $10.4 million in 2024, 2023, and 2022, respectively, for its work as a Farmer Mac servicer.

National Rural Utilities Cooperative Financial Corporation:
 
Farmer Mac considers the National Rural Utilities Cooperative Financial Corporation ("CFC") a related party because CFC owns approximately 7.91% of Farmer Mac's Class A voting common stock. The following transactions occurred between Farmer Mac and CFC during 2024, 2023, and 2022:
 
Table 3.2
Farmer Mac Loan Purchases and Guarantees
 For the Years Ended December 31,
 202420232022
 (in thousands)
Unpaid Principal Balance:  
Loans$453,972 $298,254 $386,998 
LTSPCs— — 30,421 
AgVantage Securities
200,000 1,450,000 670,000 
Total purchases and guarantees$653,972 $1,748,254 $1,087,419 
 
Of Farmer Mac's total outstanding business volume (excluding loans serviced for others) as of December 31, 2024 and 2023, Power & Utilities loans, loans under LTSPCs, and AgVantage securities issued by CFC represented 19.0% and 20.4%, respectively.

Farmer Mac had interest receivable of $30.0 million and $27.0 million as of December 31, 2024 and 2023, respectively, and earned interest income of $158.4 million, $143.5 million, and $79.4 million during 2024, 2023, and 2022, respectively, related to its AgVantage transactions with CFC.
As of both December 31, 2024 and 2023, Farmer Mac had $0.1 million of commitment fees receivable from CFC and earned commitment fees of $0.9 million, $1.0 million, and $1.1 million, respectively for 2024, 2023, and 2022.

CFC retained servicing fees of $4.1 million, $3.7 million, and $3.4 million in 2024, 2023, and 2022, respectively, for its work as a Farmer Mac central servicer.

CoBank:

Farmer Mac considers CoBank a related party because CoBank owns approximately 32.6% of Farmer Mac's Class B voting common stock.

Farmer Mac purchased $442.7 million, $438.8 million, and $376.0 million of loans and participations from CoBank, under the Infrastructure Finance and Agricultural Finance lines of business in 2024, 2023, and 2022, respectively. Of Farmer Mac's total outstanding business volume as of December 31, 2024 and 2023, CoBank's loans, participations, and unfunded commitments represented 7.1% and 6.7%, respectively, of total outstanding volume (excluding loans serviced for others).

CoBank retained servicing fees of $4.0 million, $3.6 million, and $3.5 million in 2024, 2023, and 2022, respectively, for its work as a Farmer Mac central servicer.

AgFirst Farm Credit Bank:
 
Farmer Mac considers AgFirst Farm Credit Bank ("AgFirst") a related party because AgFirst owns approximately 16.8% of Farmer Mac's Class B voting common stock.

AgFirst entered into no Agricultural Finance LTSPC transactions in either 2024, 2023, or 2022. The aggregate balance of Agricultural Finance LTSPCs outstanding as of December 31, 2024 and 2023 was $415.2 million and $447.3 million, respectively. In 2024, 2023, and 2022, Farmer Mac received $1.3 million, $1.4 million, and $1.2 million, respectively, in commitment fees from AgFirst, and had $0.1 million of commitment fees receivable as of both December 31, 2024 and 2023.

AgFirst owns certain securities backed by rural housing loans. Farmer Mac guarantees the last ten percent of losses (based on the original principal balance at the time of pooling) from each loan in the pool backing those securities. As of December 31, 2024 and 2023, the outstanding balance of those securities owned by AgFirst was $1.5 million and $1.8 million, respectively. Farmer Mac received guarantee fees of $12,000, $12,000, and $15,000 in 2024, 2023, and 2022, respectively, on those securities.

Farm Credit Bank of Texas:
 
Farmer Mac considers Farm Credit Bank of Texas a related party because the bank owns approximately 7.7% of Farmer Mac's Class B voting common stock. Farmer Mac received from Farm Credit Bank of Texas commitment fees of $3.6 million, $3.4 million, and $2.9 million in 2024, 2023, and 2022, respectively. The aggregate amount of Agricultural Finance LTSPCs outstanding with Farm Credit Bank of Texas as of December 31, 2024 and 2023 was $1.2 billion and $923.9 million, respectively. In each of 2024, 2023, and 2022, Farm Credit Bank of Texas retained $0.1 million in servicing fees for its work as a Farmer Mac central servicer.
Other Related Party Transactions

Farmer Mac considers Friona Industries LP and Farm Credit of Florida related parties because each of those entities has an affiliation with a member of Farmer Mac's board of directors.

In 2024, Farmer Mac purchased an Agricultural Finance loan participation in the amount of $46.2 million from an unrelated seller where Friona Industries LP was the borrower. Farmer Mac did not purchase any Agricultural Finance mortgage loans where Friona Industries LP was the borrower in 2023 or 2022.

Farmer Mac purchased $1.7 million in Agricultural Finance loans from Farm Credit of Florida in 2024. Farmer Mac did not purchase any Agricultural Finance mortgage loans from Farm Credit of Florida in 2023 or 2022.