FINANCIAL DERIVATIVES (Tables)

6 Months Ended

Jun. 30, 2025

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Derivative Instruments in Statement of Financial Position

The following tables summarize information related to Farmer Mac's financial derivatives on a gross basis without giving consideration to master netting arrangements. The table below includes accrued interest on cleared swaps, but excludes $21.9 million and $15.8 million of accrued interest receivable and $3.0 million and $4.9 million of accrued interest payable on uncleared swaps as of June 30, 2025 and December 31, 2024, respectively. The aforementioned accrued interest on uncleared swaps is included within Accrued Interest Receivable and Accrued Interest Payable on the Consolidated Balance Sheets.

Table 4.1

	As of June 30, 2025
			Fair Value				Weighted- Average Pay Rate	Weighted- Average Receive Rate	Weighted- Average Forward Price	Weighted- Average Remaining Term (in years)
	Notional Amount		Asset		(Liability)
	(dollars in thousands)
Fair value hedges:
Interest rate swaps:
Receive fixed non-callable	$	6,408,185	$	2,175	$	(5,695)	4.68%	3.43%		1.45
Pay fixed non-callable	10,009,135		136		(15,527)		2.79%	4.51%		8.75
Receive fixed callable	4,834,383		18,655		(33,969)		4.52%	3.75%		2.85
Cash flow hedges:
Interest rate swaps:
Pay fixed non-callable	498,000		11,398		(295)		1.87%	4.85%		3.20
No hedge designation:
Interest rate swaps:
Pay fixed non-callable	151,854		493		(109)		2.97%	4.71%		3.27
Receive fixed non-callable	1,563,231		104		(6)		4.49%	4.13%		0.46
Basis swaps	640,384		—		(386)		4.65%	4.51%		3.42
Treasury futures	12,500		—		(21)				111.96
Netting adjustments(1)	—		(2,311)		2,311
Total financial derivatives	$	24,117,672	$	30,650	$	(53,697)

(1)Amounts represent the application of the netting requirements that allow Farmer Mac to settle positive and negative positions, including accrued interest, held or placed with the same clearing agent.

	As of December 31, 2024
			Fair Value				Weighted- Average Pay Rate	Weighted- Average Receive Rate	Weighted- Average Forward Price	Weighted- Average Remaining Term (in years)
	Notional Amount		Asset		(Liability)
	(dollars in thousands)
Fair value hedges:
Interest rate swaps:
Receive fixed non-callable	$	7,460,685	$	174	$	(12,165)	4.71%	3.40%		1.53
Pay fixed non-callable	9,657,181		5,134		(97)		2.67%	4.56%		9.12
Receive fixed callable	4,592,077		5,119		(65,167)		4.54%	3.67%		2.65
Cash flow hedges:
Interest rate swaps:
Pay fixed non-callable	540,000		16,903		(2)		1.92%	4.87%		3.43
No hedge designation:
Interest rate swaps:
Pay fixed non-callable	157,776		819		(1)		2.92%	4.75%		3.40
Receive fixed non-callable	1,803,328		48		(2)		4.52%	4.43%		0.30
Basis swaps	655,384		8		(354)		4.69%	4.52%		3.83
Treasury futures	29,900		46		—				108.91
Netting adjustments(1)	—		(462)		462
Total financial derivatives	$	24,896,331	$	27,789	$	(77,326)

(1)Amounts represent the application of the netting requirements that allow Farmer Mac to settle positive and negative positions, including accrued interest, held or placed with the same clearing agent.

Schedule of Net Income/(Expense) Recognized

The following tables summarize the net income/(expense) recognized in the Consolidated Statements of Operations related to derivatives for the three and six months ended June 30, 2025 and 2024:

Table 4.2

	For the Three Months Ended June 30, 2025
	Net Income/(Expense) Recognized in Consolidated Statement of Operations on Derivatives
	Net Interest Income								Non-Interest Income		Total
	Interest Income Investments and Cash Equivalents		Interest Income Farmer Mac Guaranteed Securities and USDA Securities		Interest Income Loans		Total Interest Expense		Gains on financial derivatives
	(in thousands)
Total amounts presented in the Consolidated Statement of Operations	$	88,985	$	124,998	$	185,039	$	(302,225)	$	80	$	96,877
Income/(expense) related to interest settlements on fair value hedging relationships:
Recognized on derivatives	7,261		21,746		12,499		(27,776)		—		13,730
Recognized on hedged items	14,101		56,672		19,633		(100,215)		—		(9,809)
Premium/discount amortization recognized on hedged items	796		—		—		(723)		—		73
Income/(expense) related to interest settlements on fair value hedging relationships	$	22,158	$	78,418	$	32,132	$	(128,714)	$	—	$	3,994
Gains/(losses) on fair value hedging relationships:
Recognized on derivatives	$	(19,260)	$	(37,476)	$	(8,027)	$	42,233	$	—	$	(22,530)
Recognized on hedged items	19,271		37,769		8,860		(40,661)		—		25,239
Gains/(losses) on fair value hedging relationships	$	11	$	293	$	833	$	1,572	$	—	$	2,709
Expense related to interest settlements on cash flow hedging relationships:
Interest settlements reclassified from AOCI into net income on derivatives	$	—	$	—	$	—	$	3,746	$	—	$	3,746
Recognized on hedged items	—		—		—		(6,108)		—		(6,108)
Discount amortization recognized on hedged items	—		—		—		(38)		—		(38)
Expense recognized on cash flow hedges	$	—	$	—	$	—	$	(2,400)	$	—	$	(2,400)
Gains on financial derivatives not designated in hedging relationships:
Losses on interest rate swaps	$	—	$	—	$	—	$	—	$	(834)	$	(834)
Interest expense on interest rate swaps	—		—		—		—		(208)		(208)
Treasury futures	—		—		—		—		1,122		1,122
Gains on financial derivatives not designated in hedge relationships	$	—	$	—	$	—	$	—	$	80	$	80

	For the Three Months Ended June 30, 2024
	Net Income/(Expense) Recognized in Consolidated Statement of Operations on Derivatives
	Net Interest Income								Non-Interest Income		Total
	Interest Income Investments and Cash Equivalents		Interest Income Farmer Mac Guaranteed Securities and USDA Securities		Interest Income Loans		Total Interest Expense		Losses on financial derivatives
	(in thousands)
Total amounts presented in the Consolidated Statement of Operations:	$	84,538	$	166,063	$	153,105	$	(316,366)	$	(1,799)	$	85,541
Income/(expense) related to interest settlements on fair value hedging relationships:
Recognized on derivatives	10,408		39,134		17,827		(76,659)		—		(9,290)
Recognized on hedged items	10,309		52,651		16,705		(107,290)		—		(27,625)
Premium/discount amortization recognized on hedged items	487		—		—		(721)		—		(234)
Income/(expense) related to interest settlements on fair value hedging relationships	$	21,204	$	91,785	$	34,532	$	(184,670)	$	—	$	(37,149)
Gains/(losses) on fair value hedging relationships:
Recognized on derivatives	$	3,460	$	6,926	$	13,188	$	30,872	$	—	$	54,446
Recognized on hedged items	(3,361)		(6,508)		(12,112)		(29,861)		—		(51,842)
Gains/(losses) on fair value hedging relationships	$	99	$	418	$	1,076	$	1,011	$	—	$	2,604
Expense related to interest settlements on cash flow hedging relationships:
Interest settlements reclassified from AOCI into net income on derivatives	$	—	$	—	$	—	$	5,393	$	—	$	5,393
Recognized on hedged items	—		—		—		(8,014)		—		(8,014)
Discount amortization recognized on hedged items	—		—		—		(14)		—		(14)
Expense recognized on cash flow hedges	$	—	$	—	$	—	$	(2,635)	$	—	$	(2,635)
Losses on financial derivatives not designated in hedge relationships:
Losses on interest rate swaps	$	—	$	—	$	—	$	—	$	(26)	$	(26)
Interest expense on interest rate swaps	—		—		—		—		(486)		(486)
Treasury futures	—		—		—		—		(1,287)		(1,287)
Losses on financial derivatives not designated in hedge relationships	$	—	$	—	$	—	$	—	$	(1,799)	$	(1,799)

	For the Six Months Ended June 30, 2025
	Net Income/(Expense) Recognized in Consolidated Statement of Operations on Derivatives
	Net Interest Income								Non-Interest Income		Total
	Interest Income Investments and Cash Equivalents		Interest Income Farmer Mac Guaranteed Securities and USDA Securities		Interest Income Loans		Total Interest Expense		Losses on financial derivatives
	(in thousands)
Total amounts presented in the Consolidated Statement of Operations	$	172,293	$	251,340	$	356,803	$	(592,700)	$	(2,556)	$	185,180
Income/(expense) related to interest settlements on fair value hedging relationships:
Recognized on derivatives	14,346		43,805		24,883		(56,270)		—		26,764
Recognized on hedged items	27,231		112,543		38,601		(204,093)		—		(25,718)
Premium/discount amortization recognized on hedged items	1,227		—		—		(1,383)		—		(156)
Income/(expense) related to interest settlements on fair value hedging relationships	$	42,804	$	156,348	$	63,484	$	(261,746)	$	—	$	890
(Losses)/gains on fair value hedging relationships:
Recognized on derivatives	$	(53,269)	$	(119,962)	$	(52,581)	$	117,833	$	—	$	(107,979)
Recognized on hedged items	53,249		119,787		53,840		(115,089)		—		111,787
(Losses)/gains on fair value hedging relationships	$	(20)	$	(175)	$	1,259	$	2,744	$	—	$	3,808
Expense related to interest settlements on cash flow hedging relationships:
Interest settlements reclassified from AOCI into net income on derivatives	$	—	$	—	$	—	$	7,571	$	—	$	7,571
Recognized on hedged items	—		—		—		(12,453)		—		(12,453)
Discount amortization recognized on hedged items	—		—		—		(38)		—		(38)
Expense recognized on cash flow hedges	$	—	$	—	$	—	$	(4,920)	$	—	$	(4,920)
Losses on financial derivatives not designated in hedging relationships:
Losses on interest rate swaps	$	—	$	—	$	—	$	—	$	(3,537)	$	(3,537)
Interest expense on interest rate swaps	—		—		—		—		110		110
Treasury futures	—		—		—		—		871		871
Losses on financial derivatives not designated in hedge relationships	$	—	$	—	$	—	$	—	$	(2,556)	$	(2,556)

	For the Six Months Ended June 30, 2024
	Net Income/(Expense) Recognized in Consolidated Statement of Operations on Derivatives
	Net Interest Income								Non-Interest Income		Total
	Interest Income Investments and Cash Equivalents		Interest Income Farmer Mac Guaranteed Securities and USDA Securities		Interest Income Loans		Total Interest Expense		Gains on financial derivatives
	(in thousands)
Total amounts presented in the Consolidated Statement of Operations:	$	169,462	$	332,876	$	297,685	$	(626,315)	$	280	$	173,988
Income/(expense) related to interest settlements on fair value hedging relationships:
Recognized on derivatives	20,705		79,467		35,676		(160,210)		—		(24,362)
Recognized on hedged items	20,257		104,356		33,302		(213,723)		—		(55,808)
Premium/discount amortization recognized on hedged items	933		—		—		(1,468)		—		(535)
Income/(expense) related to interest settlements on fair value hedging relationships	$	41,895	$	183,823	$	68,978	$	(375,401)	$	—	$	(80,705)
Gains/(losses) on fair value hedging relationships:
Recognized on derivatives	$	31,250	$	88,512	$	61,368	$	(23,846)	$	—	$	157,284
Recognized on hedged items	(30,882)		(87,251)		(59,173)		25,628		—		(151,678)
Gains/(losses) on fair value hedging relationships	$	368	$	1,261	$	2,195	$	1,782	$	—	$	5,606
Expense related to interest settlements on cash flow hedging relationships:
Interest settlements reclassified from AOCI into net income on derivatives	$	—	$	—	$	—	$	10,824	$	—	$	10,824
Recognized on hedged items	—		—		—		(16,105)		—		(16,105)
Discount amortization recognized on hedged items	—		—		—		(27)		—		(27)
Expense recognized on cash flow hedges	$	—	$	—	$	—	$	(5,308)	$	—	$	(5,308)
Gains on financial derivatives not designated in hedge relationships:
Gains on interest rate swaps	$	—	$	—	$	—	$	—	$	729	$	729
Interest expense on interest rate swaps	—		—		—		—		(521)		(521)
Treasury futures	—		—		—		—		72		72
Gains on financial derivatives not designated in hedge relationships	$	—	$	—	$	—	$	—	$	280	$	280

Schedule of Hedged Items in Fair Value Hedging Relationships

The following table shows the carrying amount and associated cumulative basis adjustment related to the application of hedge accounting that is included in the carrying amount of hedged assets and liabilities in fair value hedging relationships as of June 30, 2025 and December 31, 2024:

Table 4.3

	Hedged Items in Fair Value Relationship
	Carrying Amount of Hedged Assets/(Liabilities)				Cumulative Amount of Fair Value Hedging Adjustments included in the Carrying Amount of the Hedged Assets/(Liabilities)
	June 30, 2025		December 31, 2024		June 30, 2025		December 31, 2024
	(in thousands)
Investment securities, Available-for-Sale, at fair value(1)	$	1,681,016	$	1,477,880	$	(63,888)	$	(117,137)
Farmer Mac Guaranteed Securities, Available-for-Sale, at fair value(2)	5,694,675		5,478,484		(187,571)		(307,358)
Loans held for investment, at amortized cost	1,981,712		1,816,738		(318,603)		(372,444)
Notes Payable(3)	(11,204,119)		(11,899,049)		33,909		148,999

(1)Amortized cost of $1.8 billion and $1.6 billion as of June 30, 2025 and December 31, 2024, respectively.

(2)Amortized cost of $5.9 billion and $5.8 billion as of June 30, 2025 and December 31, 2024, respectively.

(3)Carrying amount represents amortized cost.

Offsetting Assets

The following tables present the fair value of financial assets and liabilities, based on the terms of Farmer Mac's master netting arrangements as of June 30, 2025 and December 31, 2024:

Table 4.4

	June 30, 2025
	Gross Amount Recognized		Gross Amounts offset in the Consolidated Balance Sheet		Net Amount Presented in the Consolidated Balance Sheet		Gross Amounts Not Offset in the Consolidated Balance Sheet
							Netting Adjustments		Financial instruments pledged		Cash Collateral		Net Amount(1)
	(in thousands)
Assets:
Uncleared derivatives	$	30,650	$	—	$	30,650	$	(22,991)	$	—	$	(7,659)	$	—
Cleared derivatives	2,311		(2,311)		—		—		—		—		—
Total	$	32,961	$	(2,311)	$	30,650	$	(22,991)	$	—	$	(7,659)	$	—
Liabilities:
Uncleared derivatives	$	(39,992)	$	—	$	(39,992)	$	22,991	$	—	$	12,727	$	(4,274)
Cleared derivatives	(16,016)		2,311		(13,705)		—		13,705		—		—
Total	$	(56,008)	$	2,311	$	(53,697)	$	22,991	$	13,705	$	12,727	$	(4,274)

(1)Any over-collateralization at an individual clearing agent and/or counterparty level is not included in the determination of the net amount. As of June 30, 2025, Farmer Mac had additional net exposure of $214.5 million due to instances where Farmer Mac's collateral to a counterparty exceeded the net derivative position and $14.0 million due to instances where Farmer Mac's collateral from a counterparty exceeded the net derivative position.

	December 31, 2024
	Gross Amount Recognized		Gross Amounts offset in the Consolidated Balance Sheet		Net Amount Presented in the Consolidated Balance Sheet		Gross Amounts Not Offset in the Consolidated Balance Sheet
							Netting Adjustments		Financial instruments pledged		Cash Collateral		Net Amount(1)
	(in thousands)
Assets:
Uncleared derivatives	$	22,759	$	—	$	22,759	$	(22,061)	$	—	$	(652)	$	46
Cleared derivatives	5,492		(462)		5,030		—		(5,030)		—		—
Total	$	28,251	$	(462)	$	27,789	$	(22,061)	$	(5,030)	$	(652)	$	46
Liabilities:
Uncleared derivatives	$	(77,326)	$	—	$	(77,326)	$	22,061	$	—	$	44,299	$	(10,966)
Cleared derivatives	(462)		462		—		—		—		—		—
Total	$	(77,788)	$	462	$	(77,326)	$	22,061	$	—	$	44,299	$	(10,966)

(1)Any over-collateralization at an individual clearing agent and/or counterparty level is not included in the determination of the net amount. As of December 31, 2024, Farmer Mac had additional net exposure of $209.0 million due to instances where Farmer Mac's collateral to a counterparty exceeded the net derivative position and $4.7 million due to instances where Farmer Mac's collateral from a counterparty exceeded the net derivative position.

Offsetting Liabilities

The following tables present the fair value of financial assets and liabilities, based on the terms of Farmer Mac's master netting arrangements as of June 30, 2025 and December 31, 2024:

Table 4.4

	June 30, 2025
	Gross Amount Recognized		Gross Amounts offset in the Consolidated Balance Sheet		Net Amount Presented in the Consolidated Balance Sheet		Gross Amounts Not Offset in the Consolidated Balance Sheet
							Netting Adjustments		Financial instruments pledged		Cash Collateral		Net Amount(1)
	(in thousands)
Assets:
Uncleared derivatives	$	30,650	$	—	$	30,650	$	(22,991)	$	—	$	(7,659)	$	—
Cleared derivatives	2,311		(2,311)		—		—		—		—		—
Total	$	32,961	$	(2,311)	$	30,650	$	(22,991)	$	—	$	(7,659)	$	—
Liabilities:
Uncleared derivatives	$	(39,992)	$	—	$	(39,992)	$	22,991	$	—	$	12,727	$	(4,274)
Cleared derivatives	(16,016)		2,311		(13,705)		—		13,705		—		—
Total	$	(56,008)	$	2,311	$	(53,697)	$	22,991	$	13,705	$	12,727	$	(4,274)

(1)Any over-collateralization at an individual clearing agent and/or counterparty level is not included in the determination of the net amount. As of June 30, 2025, Farmer Mac had additional net exposure of $214.5 million due to instances where Farmer Mac's collateral to a counterparty exceeded the net derivative position and $14.0 million due to instances where Farmer Mac's collateral from a counterparty exceeded the net derivative position.

	December 31, 2024
	Gross Amount Recognized		Gross Amounts offset in the Consolidated Balance Sheet		Net Amount Presented in the Consolidated Balance Sheet		Gross Amounts Not Offset in the Consolidated Balance Sheet
							Netting Adjustments		Financial instruments pledged		Cash Collateral		Net Amount(1)
	(in thousands)
Assets:
Uncleared derivatives	$	22,759	$	—	$	22,759	$	(22,061)	$	—	$	(652)	$	46
Cleared derivatives	5,492		(462)		5,030		—		(5,030)		—		—
Total	$	28,251	$	(462)	$	27,789	$	(22,061)	$	(5,030)	$	(652)	$	46
Liabilities:
Uncleared derivatives	$	(77,326)	$	—	$	(77,326)	$	22,061	$	—	$	44,299	$	(10,966)
Cleared derivatives	(462)		462		—		—		—		—		—
Total	$	(77,788)	$	462	$	(77,326)	$	22,061	$	—	$	44,299	$	(10,966)

(1)Any over-collateralization at an individual clearing agent and/or counterparty level is not included in the determination of the net amount. As of December 31, 2024, Farmer Mac had additional net exposure of $209.0 million due to instances where Farmer Mac's collateral to a counterparty exceeded the net derivative position and $4.7 million due to instances where Farmer Mac's collateral from a counterparty exceeded the net derivative position.