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LOANS

3 Months Ended

Mar. 31, 2025

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 March 31, 2025, Farmer Mac had $6.0 million of loans held for sale and $6.2 million as of December 31, 2024.

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 loans held for sale and displays the composition of the loan balances as of March 31, 2025 and December 31, 2024:

Table 5.1


	As of March 31, 2025						As of December 31, 2024
	Unsecuritized		In Consolidated Trusts		Total		Unsecuritized		In Consolidated Trusts		Total
	(in thousands)
Agricultural Finance loans
Farm & Ranch	$	5,501,067	$	2,005,680	$	7,506,747	$	5,414,732	$	2,038,283	$	7,453,015
Corporate AgFinance	1,371,202		—		1,371,202		1,381,674		—		1,381,674
Total Agricultural Finance loans	6,872,269		2,005,680		8,877,949		6,796,406		2,038,283		8,834,689
Infrastructure Finance loans	5,108,990		—		5,108,990		4,774,483		—		4,774,483
Total unpaid principal balance(1)	11,981,259		2,005,680		13,986,939		11,570,889		2,038,283		13,609,172
Unamortized premiums, discounts, fair value hedge basis adjustment, and other cost basis adjustments	(338,399)		—		(338,399)		(381,311)		—		(381,311)
Total loans	11,642,860		2,005,680		13,648,540		11,189,578		2,038,283		13,227,861
Allowance for losses	(24,356)		(700)		(25,056)		(22,594)		(629)		(23,223)
Total loans, net of allowance	$	11,618,504	$	2,004,980	$	13,623,484	$	11,166,984	$	2,037,654	$	13,204,638

(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 March 31, 2025 and December 31, 2024:

Table 5.2


	March 31, 2025		December 31, 2024
	Allowance for Losses		Allowance for Losses
	(in thousands)
Loans:
Agricultural Finance loans
Farm & Ranch	$	5,071	$	5,132
Corporate AgFinance	6,298		5,379
Total Agricultural Finance loans	11,369		10,511
Infrastructure Finance loans	13,687		12,712
Total	$	25,056	$	23,223

The following is a summary of the changes in the allowance for losses for the three months ended March 31, 2025 and 2024:

Table 5.3


	For the Three Months Ended
	March 31, 2025								March 31, 2024
	Agricultural Finance loans						Infrastructure Finance loans(3)		Agricultural Finance loans						Infrastructure Finance loans(3)
	Farm & Ranch(1)		Corporate AgFinance(2)		Total				Farm & Ranch(1)		Corporate AgFinance(2)		Total
	(in thousands)













Beginning Balance	$	5,132	$	5,379	$	10,511	$	12,712	$	3,936	$	2,948	$	6,884	$	9,147
(Release of)/provision for losses	(61)		836		775		975		599		(379)		220		(1,963)

Recovery	—		83		83		—		—		—		—		—
Ending Balance	$	5,071	$	6,298	$	11,369	$	13,687	$	4,535	$	2,569	$	7,104	$	7,184

(1)As of March 31, 2025 and 2024, the allowance for losses for Agricultural Finance Farm & Ranch loans includes $0.7 million and $1.4 million allowance for collateral dependent assets secured by agricultural real estate, respectively.

(2)As of March 31, 2025 and 2024, the allowance for losses for Agricultural Finance Corporate AgFinance loans includes $1.0 million and $0.0 million allowance for collateral dependent assets secured by agricultural real estate, respectively.

(3)As of both March 31, 2025 and 2024, the allowance for losses for Infrastructure Finance loans includes no allowance for collateral dependent assets.

The $1.0 million net provision to the allowance for the Infrastructure Finance portfolio during the quarter ended March 31, 2025 was primarily attributable to new loan volume within the Renewable Energy and Power & Utilities segments.

The $0.8 million net provision to the allowance for the Agricultural Finance mortgage loan portfolio during the quarter ended March 31, 2025 was primarily attributable to new loan volume.

The $2.0 million net release from the allowance for the Infrastructure Finance portfolio during the

quarter ended March 31, 2024 was primarily attributable to a single telecommunications loan that

completed a restructuring, which resulted in an improved collateral position and a paydown of

approximately 15% of its previously unpaid principal balance. The $0.2 million net provision to the

allowance for the Agricultural Finance mortgage loan portfolio during the quarter ended March 31, 2024

was primarily attributable to increased loan volume. Although substandard Agricultural Finance loans

increased $73.0 million from December 31, 2023, there was not a significant provision for loss associated

with that increase because of the net realizable value of those loans.

The following table presents the unpaid principal balances by delinquency status of Farmer Mac's loans and non-performing assets as of March 31, 2025 and December 31, 2024:

Table 5.4


	As of March 31, 2025
	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	$	7,320,821	$	17,004	$	7,031	$	10,096	$	34,131	$	151,795	$	7,506,747
Corporate AgFinance	1,320,794		5,494		—		—		5,494		44,914		1,371,202
Total Agricultural Finance loans	8,641,615		22,498		7,031		10,096		39,625		196,709		8,877,949
Infrastructure Finance loans	5,108,990		—		—		—		—		—		5,108,990
Total	$	13,750,605	$	22,498	$	7,031	$	10,096	$	39,625	$	196,709	$	13,986,939

(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 (single-class) 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 $36.4 million of nonaccrual loans for which there was no associated allowance. During the three months ended March 31, 2025, Farmer Mac received $1.3 million in interest on nonaccrual loans.


	As of December 31, 2024
	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	$	7,299,364	$	16,478	$	7,268	$	6,359	$	30,105	$	123,546	$	7,453,015
Corporate AgFinance	1,336,305		—		—		—		—		45,369		1,381,674
Total Agricultural Finance loans	8,635,669		16,478		7,268		6,359		30,105		168,915		8,834,689
Infrastructure Finance loans	4,774,483		—		—		—		—		—		4,774,483
Total	$	13,410,152	$	16,478	$	7,268	$	6,359	$	30,105	$	168,915	$	13,609,172

(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 (single-class) by third parties that are 90 days or more past due.

(4)Includes $41.5 million of nonaccrual loans for which there was no associated allowance. During the year ended December 31, 2024, Farmer Mac received $4.9 million in interest on nonaccrual loans.

Credit Quality Indicators

The following tables present credit quality indicators related to Agricultural Finance mortgage loans and Infrastructure Finance loans held as of March 31, 2025 and December 31, 2024, by year of origination:

Table 5.5


	As of March 31, 2025
	Year of Origination:
	2025		2024		2023		2022		2021		Prior		Revolving Loans - Amortized Cost Basis		Total
	(in thousands)
Agricultural Finance - Farm & Ranch loans(1):
Internally Assigned Risk Rating:
Acceptable	$	311,988	$	962,820	$	499,416	$	983,198	$	1,541,249	$	2,179,587	$	377,473	$	6,855,731
Special mention(2)	25,067		159,529		34,085		37,548		18,739		40,774		19,369		335,111
Substandard(3)	2,328		17,821		36,679		60,541		27,741		150,413		20,382		315,905
Total	$	339,383	$	1,140,170	$	570,180	$	1,081,287	$	1,587,729	$	2,370,774	$	417,224	$	7,506,747




For the Three Months Ended March 31, 2025:
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 March 31, 2025
	Year of Origination:
	2025		2024		2023		2022		2021		Prior		Revolving Loans - Amortized Cost Basis		Total
	(in thousands)
Agricultural Finance - Corporate AgFinance(1):
Internally Assigned Risk Rating:
Acceptable	$	49,143	$	208,911	$	137,905	$	64,537	$	207,574	$	213,314	$	261,089	$	1,142,473
Special mention(2)	—		—		36,874		—		—		74,549		5,061		116,484
Substandard(3)	—		—		7,311		7,310		28,317		47,617		21,690		112,245
Total	$	49,143	$	208,911	$	182,090	$	71,847	$	235,891	$	335,480	$	287,840	$	1,371,202




For the Three Months Ended March 31, 2025:
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 March 31, 2025
	Year of Origination:
	2025		2024		2023		2022		2021		Prior		Revolving Loans - Amortized Cost Basis		Total
	(in thousands)
Infrastructure Finance loans(1):
Internally Assigned Risk Rating:
Acceptable	$	295,563	$	1,172,130	$	520,026	$	601,968	$	175,924	$	1,761,509	$	529,965	$	5,057,085
Special mention(2)	—		—		—		9,724		—		—		—		9,724
Substandard(3)	—		—		13,122		29,059		—		—		—		42,181
Total	$	295,563	$	1,172,130	$	533,148	$	640,751	$	175,924	$	1,761,509	$	529,965	$	5,108,990




For the Three Months Ended March 31, 2025:
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, 2024
	Year of Origination:
	2024		2023		2022		2021		2020		Prior		Revolving Loans - Amortized Cost Basis		Total
	(in thousands)
Agricultural Finance - Farm & Ranch loans(1):
Internally Assigned Risk Rating:
Acceptable	$	987,444	$	525,559	$	1,079,933	$	1,577,305	$	1,019,779	$	1,287,334	$	404,950	$	6,882,304
Special mention(2)	139,297		34,290		32,886		24,204		7,533		23,099		22,087		283,396
Substandard(3)	8,077		28,790		52,350		24,733		60,418		92,594		20,353		287,315
Total	$	1,134,818	$	588,639	$	1,165,169	$	1,626,242	$	1,087,730	$	1,403,027	$	447,390	$	7,453,015




For the Three Months Ended March 31, 2024:
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, 2024
	Year of Origination:
	2024		2023		2022		2021		2020		Prior		Revolving Loans - Amortized Cost Basis		Total
	(in thousands)
Agricultural Finance - Corporate AgFinance loans(1):
Internally Assigned Risk Rating:
Acceptable	$	210,807	$	152,918	$	64,860	$	235,493	$	80,085	$	161,354	$	262,295	$	1,167,812
Special mention(2)	—		37,010		—		14,557		75,440		—		7,158		134,165
Substandard(3)	—		7,309		7,652		—		14,335		33,479		16,922		79,697
Total	$	210,807	$	197,237	$	72,512	$	250,050	$	169,860	$	194,833	$	286,375	$	1,381,674




For the Three Months Ended March 31, 2024:
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, 2024
	Year of Origination:
	2024		2023		2022		2021		2020		Prior		Revolving Loans - Amortized Cost Basis		Total
	(in thousands)
Infrastructure Finance loans(1):
Internally Assigned Risk Rating:
Acceptable	$	1,158,427	$	521,143	$	578,882	$	174,232	$	574,135	$	1,229,626	$	461,162	$	4,697,607
Special mention(2)	—		—		34,388		—		—		—		—		34,388
Substandard(3)	—		13,356		29,132		—		—		—		—		42,488
Total	$	1,158,427	$	534,499	$	642,402	$	174,232	$	574,135	$	1,229,626	$	461,162	$	4,774,483




For the Three Months Ended March 31, 2024:
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.