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BUSINESS SEGMENT REPORTING
 3 Months Ended
Mar. 31, 2025
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 secured by Farm & Ranch loans. 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. Farmer Mac allocates interest expense to each of the other segments using a funds transfer pricing process. That process also allocates the benefits and costs from Farmer Mac's funding and hedging strategies to the Funding segment.

The Investments segment includes the financial results of Farmer Mac'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 Chief Operating Decision Maker ("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 three months ended March 31, 2025 and 2024.

Table 10.1
Core Earnings by Business Segment
For the Three Months Ended March 31, 2025
Agricultural FinanceInfrastructure FinanceTreasury
Farm & RanchCorporate AgFinance
Power &
Utilities
Broadband Infrastructure
Renewable EnergyFundingInvestments
Total
 (in thousands)
Interest income
$149,681 $25,122 $64,995 $10,833 $20,315 $32,978 $77,490 $381,414 
Interest expense(1)
(114,789)(16,482)(59,638)(7,267)(15,203)(1,460)(75,636)(290,475)
Less: reconciling adjustments(2)(3)
(1,007)— (28)— — 86 — (949)
Net effective spread33,885 8,640 5,329 3,566 5,112 31,604 1,854 89,990 
Guarantee and commitment fees(3)
4,551 197 221 336 183 — — 5,488 
Other income/(expense)
1,222 — — — — — 22 1,244 
Release of/(provision for) losses
193 (828)(77)229 (1,100)— — (1,583)
Operating expenses(1)
(6,595)(2,133)(1,123)(1,052)(1,708)(2,800)(823)(16,234)
Income tax (expense)/benefit(6,982)(1,235)(913)(647)(522)(6,049)(221)(16,569)
Segment core earnings
$26,274 $4,641 $3,437 $2,432 $1,965 $22,755 $832 $62,336 
Reconciliation to net income:
Net effects of derivatives and trading securities
$(2,535)
Unallocated (expenses)/income
(13,245)
Income tax effect related to reconciling items3,095 
 Net income
$49,651 
Total Assets:
Total on- and off-balance sheet segment assets at principal balance
$18,094,515 $1,889,363 $7,187,966 $974,835 $1,608,664 $— $— $29,755,343 
Off-balance sheet assets under management
(5,071,733)
Unallocated assets
7,120,329 
Total assets on the consolidated balance sheets
$31,803,939 
(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 "(Losses)/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 Three Months Ended March 31, 2024
Agricultural FinanceInfrastructure FinanceTreasury
Farm & RanchCorporate AgFinancePower &
Utilities		Broadband InfrastructureRenewable EnergyFundingInvestmentsTotal
 (in thousands)
Interest income
$152,204 $24,888 $66,306 $8,695 $8,149 $60,239 $75,836 $396,317 
Interest expense(1)
(118,315)(16,917)(61,383)(6,353)(6,100)(25,520)(75,361)(309,949)
Less: reconciling adjustments(2)(3)
(1,046)— (33)— — (2,245)— (3,324)
Net effective spread32,843 7,971 4,890 2,342 2,049 32,474 475 83,044 
Guarantee and commitment fees(3)
4,484 87 256 93 62 — — 4,982 
Other income/(expense)
995 12 — — — — 4 1,011 
(Provision for)/release of losses
(497)378 174 2,836 (1,022)— 1 1,870 
Operating expenses(1)
(6,129)(1,850)(1,131)(827)(1,068)(2,564)(729)(14,298)
Income tax (expense)/benefit(6,656)(1,386)(880)(933)(4)(6,281)52 (16,088)
Segment core earnings
$25,040 $5,212 $3,309 $3,511 $17 $23,629 $(197)$60,521 
Reconciliation to net income:
Net effects of derivatives and trading securities$4,479 
Unallocated (expense)/income
(12,842)
Income tax effect related to reconciling items1,588 
Net income
$53,746 
Total Assets:
Total on- and off-balance sheet segment assets at principal balance
$18,900,906 $1,766,294 $6,970,538 $467,185 $742,307 $— $— $28,847,230 
Off-balance sheet assets under management
(4,637,247)
Unallocated assets
5,562,208 
Total assets on the consolidated balance sheets
$29,772,191 
(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 "(Losses)/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.