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LOANS

6 Months Ended

Jun. 30, 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 June 30, 2025, Farmer Mac had $7.8 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 June 30, 2025 and December 31, 2024:

Table 5.1


	As of June 30, 2025						As of December 31, 2024
	Unsecuritized		In Consolidated Trusts		Total		Unsecuritized		In Consolidated Trusts		Total
	(in thousands)
Agricultural Finance loans
Farm & Ranch	$	5,630,602	$	2,275,254	$	7,905,856	$	5,414,732	$	2,038,283	$	7,453,015
Corporate AgFinance	1,450,596		—		1,450,596		1,381,674		—		1,381,674
Total Agricultural Finance loans	7,081,198		2,275,254		9,356,452		6,796,406		2,038,283		8,834,689
Infrastructure Finance loans	5,484,656		—		5,484,656		4,774,483		—		4,774,483
Total unpaid principal balance(1)	12,565,854		2,275,254		14,841,108		11,570,889		2,038,283		13,609,172
Unamortized premiums, discounts, fair value hedge basis adjustment, and other cost basis adjustments	(331,169)		—		(331,169)		(381,311)		—		(381,311)
Total loans	12,234,685		2,275,254		14,509,939		11,189,578		2,038,283		13,227,861
Allowance for losses	(29,253)		(703)		(29,956)		(22,594)		(629)		(23,223)
Total loans, net of allowance	$	12,205,432	$	2,274,551	$	14,479,983	$	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 June 30, 2025 and December 31, 2024:

Table 5.2


	June 30, 2025		December 31, 2024
	Allowance for Losses		Allowance for Losses
	(in thousands)
Loans:
Agricultural Finance loans
Farm & Ranch	$	6,635	$	5,132
Corporate AgFinance	6,943		5,379
Total Agricultural Finance loans	13,578		10,511
Infrastructure Finance loans	16,378		12,712
Total	$	29,956	$	23,223

The following is a summary of the changes in the allowance for losses for the three and six months ended June 30, 2025 and 2024:

Table 5.3



	June 30, 2025								June 30, 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)












For the Three Months Ended
Beginning Balance	$	5,071	$	6,298	$	11,369	$	13,687	$	4,535	$	2,569	$	7,104	$	7,184
Provision for losses	4,404		605		5,009		2,691		242		5,387		5,629		626
Charge-offs	(2,840)		—		(2,840)		—		(101)		(3,942)		(4,043)		—
Recovery	—		40		40		—		—		—		—		—
Ending Balance	$	6,635	$	6,943	$	13,578	$	16,378	$	4,676	$	4,014	$	8,690	$	7,810

For the Six Months Ended
Beginning Balance	$	5,132	$	5,379	$	10,511	$	12,712	$	3,936	$	2,948	$	6,884	$	9,147
Provision for/(release of) losses	4,343		1,441		5,784		3,666		841		5,008		5,849		(1,337)
Charge-offs	(2,840)		—		(2,840)		—		(101)		(3,942)		(4,043)		—
Recovery	—		123		123		—		—		—		—		—
Ending Balance	$	6,635	$	6,943	$	13,578	$	16,378	$	4,676	$	4,014	$	8,690	$	7,810

(1)As of June 30, 2025 and 2024, the allowance for losses for Agricultural Finance Farm & Ranch loans includes $1.7 million and $1.2 million allowance for collateral dependent assets secured by agricultural real estate, respectively.

(2)As of June 30, 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 June 30, 2025 and 2024, the allowance for losses for Infrastructure Finance loans includes no allowance for collateral dependent assets.

The $5.0 million net provision to the allowance for the Agricultural Finance mortgage loan portfolio during the quarter ended June 30, 2025 was primarily attributable to two individual Farm & Ranch borrowers, one with a permanent planting loan and the other a crop loan. During second quarter 2025, we recorded a charge-off of $2.8 million related to these two specific borrower relationships to reflect the amount of each loan that we deemed uncollectible. The remaining net provision was related to credit downgrades and declining economic forecast factors.

The $2.7 million net provision to the allowance for the Infrastructure Finance portfolio during the quarter ended June 30, 2025 was primarily attributable to two borrowers that were downgraded, one within Renewable Energy and one within Broadband Infrastructure, as well as new volume growth in those operating segments.

The $5.8 million net provision to the allowance for the Agricultural Finance mortgage loan portfolio during the six months ended June 30, 2025 was primarily attributable to the factors noted above, along with new volume growth.

The $3.7 million net provision to the allowance for the Infrastructure Finance portfolio during the six months ended June 30, 2025 was primarily attributable to new volume growth and the two downgrades noted above.

The $0.6 million net provision to the allowance for the Infrastructure Finance portfolio during the

quarter ended June 30, 2024 was primarily attributable to renewable energy loans that extended their preconstruction phase, which has higher expected loss assumptions than their operating phase. The

$5.6 million net provision to the allowance for the Agricultural Finance mortgage loan portfolio during the

quarter ended June 30, 2024 was primarily attributable to a permanent planting loan that is in bankruptcy

and of which $3.9 million was deemed uncollectible. Accordingly, a charge-off in the amount of $3.9 million was recorded in connection with that loan. The remaining provision during the quarter was

attributable to increased loan volume.

The $1.3 million net release from the allowance for the Infrastructure Finance portfolio during the

six months ended June 30, 2024 was primarily attributable to a single telecommunications loan that

completed a restructuring during first quarter, which resulted in an improved collateral position and a

paydown of approximately 15% of its previously unpaid principal balance. The $5.8 million net provision

to the allowance for the Agricultural Finance mortgage loan portfolio during the six months ended

June 30, 2024 was primarily attributable to the permanent planting loan mentioned above and increased

loan volume.

The following table presents the unpaid principal balances by delinquency status of Farmer Mac's loans and non-performing assets as of June 30, 2025 and December 31, 2024:

Table 5.4


	As of June 30, 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	$	7,721,018	$	19,491	$	18,763	$	4,694	$	42,948	$	141,890	$	7,905,856
Corporate AgFinance	1,412,989		—		—		—		—		37,607		1,450,596
Total Agricultural Finance loans	9,134,007		19,491		18,763		4,694		42,948		179,497		9,356,452
Infrastructure Finance loans	5,484,656		—		—		—		—		—		5,484,656
Total	$	14,618,663	$	19,491	$	18,763	$	4,694	$	42,948	$	179,497	$	14,841,108

(1)Current loan amounts are presented based on contractual unpaid principal balance, while past due loan amounts are presented based on the recorded investment of the loan.

(2)Primarily consists of 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 $19.6 million of nonaccrual loans for which there was no associated allowance. During the three and six months ended June 30, 2025, Farmer Mac received $1.7 million and $3.1 million in interest on nonaccrual loans, respectively.


	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)Current loan amounts are presented based on contractual unpaid principal balance, while past due loan amounts are presented based on the recorded investment of the loan.

(2)Includes loans in consolidated trusts with beneficial interests owned (single-class) by third parties that are 90 days or more past due.

(3)Primarily consists of 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 $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 June 30, 2025 and December 31, 2024, by year of origination:

Table 5.5


	As of June 30, 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	$	732,237	$	964,125	$	480,868	$	968,980	$	1,525,951	$	2,105,442	$	375,186	$	7,152,789
Special mention(2)	136,955		141,737		38,471		28,205		21,716		45,500		31,321		443,905
Substandard(3)	—		17,263		36,385		66,289		22,699		147,715		18,811		309,162
Total	$	869,192	$	1,123,125	$	555,724	$	1,063,474	$	1,570,366	$	2,298,657	$	425,318	$	7,905,856

For the Three Months Ended June 30, 2025:
Current period charge-offs	$	—	$	—	$	—	$	—	$	—	$	1,165	$	1,675	$	2,840

For the Six Months Ended June 30, 2025:
Current period charge-offs	$	—	$	—	$	—	$	—	$	—	$	1,165	$	1,675	$	2,840

(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)Special mention assets 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 June 30, 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	$	164,169	$	199,033	$	109,244	$	63,928	$	179,361	$	260,147	$	300,526	$	1,276,408
Special mention(2)	—		—		36,725		—		—		26,379		5,061		68,165
Substandard(3)	—		—		7,312		—		28,105		47,621		22,985		106,023
Total	$	164,169	$	199,033	$	153,281	$	63,928	$	207,466	$	334,147	$	328,572	$	1,450,596

For the Three Months Ended June 30, 2025:
Current period charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

For the Six Months Ended June 30, 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)Special mention assets 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 June 30, 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	$	587,381	$	1,256,486	$	578,282	$	580,908	$	181,651	$	1,730,271	$	487,769	$	5,402,748
Special mention(2)	—		—		—		9,699		—		—		—		9,699
Substandard(3)	—		—		25,644		46,565		—		—		—		72,209
Total	$	587,381	$	1,256,486	$	603,926	$	637,172	$	181,651	$	1,730,271	$	487,769	$	5,484,656

For the Three Months Ended June 30, 2025:
Current period charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

For the Six Months Ended June 30, 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)Special mention assets 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 June 30, 2024:
Current period charge-offs	$	—	$	—	$	—	$	101	$	—	$	—	$	—	$	101

For the Six Months Ended June 30, 2024:
Current period charge-offs	$	—	$	—	$	—	$	101	$	—	$	—	$	—	$	101

(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)Special mention assets 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 June 30, 2024:
Current period charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	3,942	$	3,942

For the Six Months Ended June 30, 2024:
Current period charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	3,942	$	3,942

(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)Special mention assets 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 June 30, 2024:
Current period charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

For the Six Months Ended June 30, 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)Special mention assets 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.