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BUSINESS SEGMENT REPORTING
 12 Months Ended
Dec. 31, 2024
Segment Reporting [Abstract]  
BUSINESS SEGMENT REPORTING BUSINESS SEGMENT REPORTING
Farmer Mac has seven reportable segments: Farm & Ranch, Corporate AgFinance, Power & Utilities, Broadband Infrastructure, Renewable Energy, Funding, and Investments.

The Farm & Ranch segment includes the financial results of the USDA Securities portfolio, Farm & Ranch loans, and AgVantage securities. The Corporate AgFinance segment includes loans and AgVantage securities to larger and more complex farming operations, agribusinesses focused on food and fiber processing, and other supply chain production.

The Power & Utilities segment includes loans to rural electric generation and transmission cooperatives and distribution cooperatives, as well as AgVantage securities secured by those types of loans. The Broadband Infrastructure segment includes loans to rural fiber, cable/broadband, tower, wireless, local exchange carrier, and data center projects. The Renewable Energy segment includes rural electric solar, wind, and gas projects.

The Funding segment includes the financial results of Farmer Mac's debt issuance, hedging, asset/liability management, and capital allocation strategies. The company allocates interest expense to each of the other segments using a funds transfer pricing process. That process also allocates the benefits and costs from the company's funding and hedging strategies to the Funding segment.

The Investments segment includes the financial results of the company's investment portfolio, which is held for liquidity purposes. Interest expense is allocated to the Investments segment using the same funds transfer pricing process that is used to allocate interest expense to the other segments.

The following table presents Farmer Mac's seven segments:

Agricultural Finance Infrastructure FinanceTreasury
Farm & RanchCorporate AgFinancePower & UtilitiesBroadband InfrastructureRenewable EnergyFundingInvestments

The President and Chief Executive Officer serves as the CODM. The CODM reviews segment core earnings to make decisions about allocating resources and to assess the financial performance of the segments. The main difference between core earnings and net income is the exclusion of 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 core earnings excludes specified infrequent or unusual transactions that are not indicative of future operating results and that may not reflect the trends and economic financial performance of Farmer Mac's core business. The CODM also looks at changes in the segments' on- and off-balance sheet unpaid paid principal balances to assess the performance of the segments.
The following tables present segment core earnings and assets for the years ended December 31, 2024, 2023, and 2022.

Table 14.1
Core Earnings by Business Segment
For the Year Ended December 31, 2024
Agricultural FinanceRural InfrastructureTreasury
Farm & RanchCorporate AgFinance
Power &
Utilities
Broadband Infrastructure
Renewable EnergyFundingInvestments
Total
 (in thousands)
Interest income
$615,016 $100,820 $260,636 $38,225 $54,188 $224,390 $310,241 $1,603,516 
Interest expense(1)
(475,248)(70,695)(240,600)(27,282)(40,471)(89,698)(305,655)(1,249,649)
Less: reconciling adjustments(2)(3)
(4,458)— (49)— — (9,796)— (14,303)
Net effective spread135,310 30,125 19,987 10,943 13,717 124,896 4,586 339,564 
Guarantee and commitment fees(3)
17,695 571 966 464 625 — — 20,321 
Other income/(expense)
3,167 (2,055)— — — — 1,076 2,188 
(Provision for)/release of losses
(1,147)(6,850)274 1,469 (5,236)— — (11,490)
Operating expenses(1)
(24,741)(7,905)(4,281)(3,666)(4,848)(10,855)(3,108)(59,404)
Income tax (expense)/benefit(27,360)(2,916)(3,559)(1,934)(894)(23,949)(536)(61,148)
Segment core earnings
$102,924 $10,970 $13,387 $7,276 $3,364 $90,092 $2,018 $230,031 
Reconciliation to net income:
Net effects of derivatives and trading securities
$13,141 
Unallocated (expenses)/income
(46,217)
Income tax effect related to reconciling items10,238 
 Net income
$207,193 
Total Assets:
Total on- and off-balance sheet segment assets at principal balance
$18,606,968 $1,887,705 $6,809,366 $802,466 $1,416,525 $— $— $29,523,030 
Off-balance sheet assets under management
(4,981,285)
Unallocated assets
6,782,997 
Total assets on the consolidated balance sheets
$31,324,742 
(1)The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM.
(2)Includes the amortization of premiums and discounts on assets consolidated at fair value, originally included in interest income, to reflect core earnings amounts; 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; and excludes the fair value changes of financial derivatives and the corresponding assets or liabilities designated in fair value hedge accounting relationships.
(3)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.
Core Earnings by Business Segment
For the Year Ended December 31, 2023
Agricultural FinanceRural InfrastructureTreasury
Farm & RanchCorporate AgFinance
Power &
Utilities
Broadband Infrastructure
Renewable EnergyFundingInvestments
Total
 (in thousands)
Interest income
$559,730 $92,335 $232,106 $30,299 $18,923 $200,264 $258,631 $1,392,288 
Interest expense(1)
(422,651)(61,111)(215,763)(21,455)(14,275)(71,849)(257,637)(1,064,741)
Less: reconciling adjustments(2)(3)
(4,179)— (168)— — 3,594 186 (567)
Net effective spread132,900 31,224 16,175 8,844 4,648 132,009 1,180 326,980 
Guarantee and commitment fees(3)
17,415 283 1,090 43 97 — — 18,928 
Other income/(expense)
2,952 35 — — — 3 29 3,019 
(Provision for)/release of losses
(507)(207)4,117 (4,324)(219)— 4 (1,136)
Operating expenses(1)
(23,306)(5,540)(3,553)(2,415)(3,382)(11,037)(3,184)(52,417)
Income tax (expense)/benefit(27,183)(5,418)(3,746)(453)(238)(25,405)414 (62,029)
Segment core earnings
$102,271 $20,377 $14,083 $1,695 $906 $95,570 $(1,557)$233,345 
Reconciliation to net income:
Net effects of derivatives and trading securities$1,954 
Unallocated (expense)/income
(44,227)
Income tax effect related to reconciling items8,931 
Net income
$200,003 
Total Assets:
Total on- and off-balance sheet segment assets at principal balance
$18,808,801 $1,693,979 $6,979,570 $501,153 $487,521 $— $— $28,471,024 
Off-balance sheet assets under management
(4,710,199)
Unallocated assets
5,763,557 
Total assets on the consolidated balance sheets
$29,524,382 
(1)The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM.
(2)Includes the amortization of premiums and discounts on assets consolidated at fair value, originally included in interest income, to reflect core earnings amounts; 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; and excludes the fair value changes of financial derivatives and the corresponding assets or liabilities designated in fair value hedge accounting relationships.
(3)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.
Core Earnings by Business Segment
For the Year Ended December 31, 2022
Agricultural FinanceRural InfrastructureTreasury
Farm & RanchCorporate AgFinance
Power &
Utilities
Broadband Infrastructure
Renewable EnergyFundingInvestments
Total
 (in thousands)
Interest income
$421,139 $55,311 $152,990 $8,832 $5,811 $(8,334)$81,099 $716,848 
Interest expense(1)
(287,921)(26,102)(141,176)(4,471)(3,328)104,947 (87,857)(445,908)
Less: reconciling adjustments(2)(3)
(4,161)— (103)— — (11,147)— (15,411)
Net effective spread129,057 29,209 11,711 4,361 2,483 85,466 (6,758)255,529 
Guarantee and commitment fees(3)
16,718 139 1,187 51 49 — — 18,144 
Other income/(expense)
1,420 261 — — — — — 1,681 
(Provision for)/release of losses
(1,216)(2,136)3,726 (705)(494)— 19 (806)
Operating expenses(1)
(23,332)(5,629)(3,198)(2,009)(1,690)(6,798)(1,950)(44,606)
Income tax (expense)/benefit(25,756)(4,587)(2,819)(357)(73)(16,521)1,825 (48,288)
Segment core earnings
$96,891 $17,257 $10,607 $1,341 $275 $62,147 $(6,864)$181,654 
Reconciliation to net income:
Net effects of derivatives and trading securities
$33,715 
Unallocated (expense)/income
(37,978)
Income tax effect related to reconciling items753 
Net income
$178,144 
Total Assets:
Total on- and off-balance sheet segment assets at principal balance
$17,728,792 $1,603,507 $6,042,996 $316,617 $230,170 $— $— $25,922,082 
Off-balance sheet assets under management
(3,945,557)
Unallocated assets
5,356,585 
Total assets on the consolidated balance sheets
$27,333,110 
(1)The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM.
(2)Includes the amortization of premiums and discounts on assets consolidated at fair value, originally included in interest income, to reflect core earnings amounts; 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; and excludes the fair value changes of financial derivatives and the corresponding assets or liabilities designated in fair value hedge accounting relationships.
(3)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.