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FAIR VALUE DISCLOSURES (Tables)

9 Months Ended

Sep. 30, 2025

The following tables present information about Farmer Mac's assets and liabilities measured at fair value on a recurring basis as of September 30, 2025 and December 31, 2024, respectively, and indicate the fair value hierarchy of the valuation techniques used by Farmer Mac to determine such fair value:

Table 9.1


Assets and Liabilities Measured at Fair Value as of September 30, 2025
	Level 1		Level 2		Level 3(1)		Total
	(in thousands)
Recurring:
Assets:
Investment Securities:
Available-for-sale:
Floating rate auction-rate certificates backed by Government guaranteed student loans	$	—	$	—	$	19,482	$	19,482
Floating rate Government/GSE guaranteed mortgage-backed securities	—		2,313,850		—		2,313,850
Fixed rate Government/GSE guaranteed mortgage-backed securities	—		2,846,121		—		2,846,121
Fixed rate U.S. Treasuries	1,476,493		—		—		1,476,493
Total Available-for-sale Investment Securities	1,476,493		5,159,971		19,482		6,655,946
Farmer Mac Guaranteed Securities:
Available-for-sale:
AgVantage	—		—		5,845,642		5,845,642
Farmer Mac Guaranteed Securities	—		—		8,456		8,456
Total Farmer Mac Guaranteed Securities	—		—		5,854,098		5,854,098
USDA Securities:
Trading	—		—		456		456
Total USDA Securities	—		—		456		456
Financial derivatives	202		32,465		—		32,667
Guarantee Asset	—		—		5,049		5,049
Total Assets at fair value	$	1,476,695	$	5,192,436	$	5,879,085	$	12,548,216
Liabilities:
Financial derivatives	$	11	$	29,150	$	—	$	29,161
Total Liabilities at fair value	$	11	$	29,150	$	—	$	29,161

(1) Level 3 assets represent 18% of total assets and 47% of financial instruments measured at fair value.


Assets and Liabilities Measured at Fair Value as of December 31, 2024
	Level 1		Level 2		Level 3(1)		Total
	(in thousands)
Recurring:
Assets:
Investment Securities:
Available-for-sale:
Floating rate auction-rate certificates backed by Government guaranteed student loans	$	—	$	—	$	19,476	$	19,476
Floating rate Government/GSE guaranteed mortgage-backed securities	—		2,305,725		—		2,305,725
Fixed rate Government/GSE guaranteed mortgage-backed securities	—		2,337,967		—		2,337,967

Fixed rate U.S. Treasuries	1,289,846		—		—		1,289,846
Total Available-for-sale Investment Securities	1,289,846		4,643,692		19,476		5,953,014
Farmer Mac Guaranteed Securities:
Available-for-sale:
AgVantage	—		—		5,505,531		5,505,531
Farmer Mac Guaranteed Securities	—		—		9,015		9,015
Total Farmer Mac Guaranteed Securities	—		—		5,514,546		5,514,546
USDA Securities:
Trading	—		—		818		818
Total USDA Securities	—		—		818		818
Loans:
Loans held for sale, at lower of cost or fair value	—		6,160		—		6,160
Total Loans	—		6,160		—		6,160
Financial derivatives	47		27,742		—		27,789
Guarantee Asset	—		—		5,382		5,382
Total Assets at fair value	$	1,289,893	$	4,677,594	$	5,540,222	$	11,507,709
Liabilities:
Financial derivatives	$	—	$	77,326	$	—	$	77,326
Total Liabilities at fair value	$	—	$	77,326	$	—	$	77,326

(1) Level 3 assets represent 18% of total assets and 48% of financial instruments measured at fair value.

Schedule of Unobservable Input Reconciliation

The following tables present additional information about assets and liabilities measured at fair value on a recurring basis for which Farmer Mac has used significant unobservable inputs to determine fair value. Net transfers in and/or out of Level 3 are based on the fair values of the assets and liabilities as of the beginning of the reporting period. There were no liabilities measured at fair value using significant unobservable inputs during the three and nine months ended September 30, 2025 and 2024.

Table 9.2


Level 3 Assets and Liabilities Measured at Fair Value for the Three Months Ended September 30, 2025
	Beginning Balance		Purchases		Settlements		Allowance for Losses		Realized and unrealized gains/(losses) included in Income		Unrealized gains included in Other Comprehensive Income		Ending Balance
	(in thousands)
Recurring:
Assets:
Investment Securities:
Available-for-sale:
Floating rate auction-rate certificates backed by Government guaranteed student loans	$	19,475	$	—	$	—	$	7	$	—	$	—	$	19,482
Total available-for-sale	19,475		—		—		7		—		—		19,482
Farmer Mac Guaranteed Securities:
Available-for-sale:
AgVantage	5,722,890		350,000		(249,516)		53		19,290		2,925		5,845,642
Farmer Mac Guaranteed Securities	8,613		—		(164)		—		—		7		8,456
Total available-for-sale	5,731,503		350,000		(249,680)		53		19,290		2,932		5,854,098
USDA Securities:
Trading	560		—		(109)		—		5		—		456
Total USDA Securities	560		—		(109)		—		5		—		456
Guarantee and commitment obligations:
Guarantee Asset	5,141		—		(84)		—		(8)		—		5,049
Total Guarantee and commitment obligations	5,141		—		(84)		—		(8)		—		5,049
Total Assets at fair value	$	5,756,679	$	350,000	$	(249,873)	$	60	$	19,287	$	2,932	$	5,879,085


Level 3 Assets and Liabilities Measured at Fair Value for the Three Months Ended September 30, 2024
	Beginning Balance		Purchases		Settlements		Allowance for Losses		Realized and unrealized gains included in Income		Unrealized (losses)/gains included in Other Comprehensive Income		Ending Balance
	(in thousands)
Recurring:
Assets:
Investment Securities:
Available-for-sale:
Floating rate auction-rate certificates backed by Government guaranteed student loans	$	19,478	$	—	$	—	$	—	$	—	$	—	$	19,478
Total available-for-sale	19,478		—		—		—		—		—		19,478
Farmer Mac Guaranteed Securities:
Available-for-sale:
AgVantage	5,389,841		400,000		(215,855)		44		189,191		(10,836)		5,752,385
Farmer Mac Guaranteed Securities	9,310		—		(176)		—		—		172		9,306
Total available-for-sale	5,399,151		400,000		(216,031)		44		189,191		(10,664)		5,761,691
USDA Securities:
Trading	1,026		—		(198)		—		14		—		842
Total USDA Securities	1,026		—		(198)		—		14		—		842
Guarantee and commitment obligations:
Guarantee Asset	5,559		—		(86)		—		83		—		5,556
Total Guarantee and commitment obligations	5,559		—		(86)		—		83		—		5,556
Total Assets at fair value	$	5,425,214	$	400,000	$	(216,315)	$	44	$	189,288	$	(10,664)	$	5,787,567


Level 3 Assets and Liabilities Measured at Fair Value for the Nine Months Ended September 30, 2025
	Beginning Balance		Purchases		Settlements		Allowance for Losses		Realized and unrealized gains/(losses) included in Income		Unrealized losses included in Other Comprehensive Income		Ending Balance
	(in thousands)
Recurring:
Assets:
Investment Securities:
Available-for-sale:
Floating rate auction-rate certificates backed by Government guaranteed student loans	$	19,476	$	—	$	—	$	6	$	—	$	—	$	19,482
Total available-for-sale	19,476		—		—		6		—		—		19,482
Farmer Mac Guaranteed Securities:
Available-for-sale:
AgVantage	5,505,531		750,000		(542,365)		98		139,168		(6,790)		5,845,642
Farmer Mac Guaranteed Securities	9,015		—		(504)		—		—		(55)		8,456
Total available-for-sale	5,514,546		750,000		(542,869)		98		139,168		(6,845)		5,854,098
USDA Securities:
Trading	818		—		(381)		—		19		—		456
Total USDA Securities	818		—		(381)		—		19		—		456
Guarantee and commitment obligations:
Guarantee Asset	5,382		—		(255)		—		(78)		—		5,049
Total Guarantee and commitment obligations	5,382		—		(255)		—		(78)		—		5,049
Total Assets at fair value	$	5,540,222	$	750,000	$	(543,505)	$	104	$	139,109	$	(6,845)	$	5,879,085


Level 3 Assets and Liabilities Measured at Fair Value for the Nine Months Ended September 30, 2024
	Beginning Balance		Purchases		Settlements		Allowance for Losses		Realized and unrealized gains/(losses) included in Income		Unrealized gains included in Other Comprehensive Income		Ending Balance
	(in thousands)
Recurring:
Assets:
Investment Securities:
Available-for-sale:
Floating rate auction-rate certificates backed by Government guaranteed student loans	$	19,082	$	—	$	—	$	2	$	—	$	394	$	19,478
Total available-for-sale	19,082		—		—		2		—		394		19,478
Farmer Mac Guaranteed Securities:
Available-for-sale:
AgVantage	5,522,712		675,000		(560,643)		100		102,036		13,180		5,752,385
Farmer Mac Guaranteed Securities	9,767		—		(523)		—		—		62		9,306
Total available-for-sale	5,532,479		675,000		(561,166)		100		102,036		13,242		5,761,691
USDA Securities:
Trading	1,241		—		(414)		—		15		—		842
Total USDA Securities	1,241		—		(414)		—		15		—		842
Guarantee and commitment obligations:
Guarantee Asset	5,831		—		(256)		—		(19)		—		5,556
Total Guarantee and commitment obligations	5,831		—		(256)		—		(19)		—		5,556
Total Assets at fair value	$	5,558,633	$	675,000	$	(561,836)	$	102	$	102,032	$	13,636	$	5,787,567

Schedule of Fair Value Inputs, Assets and Liabilities, Quantitative Information

The following tables present additional information about the significant unobservable inputs, such as discount rates and constant prepayment rates ("CPR"), used in the fair value measurements categorized in Level 3 of the fair value hierarchy as of September 30, 2025 and December 31, 2024:

Table 9.3

As of September 30, 2025

Financial Instruments

Fair Value

Valuation Technique

Unobservable Input

Range (Weighted-Average)

(in thousands)

Assets:

Investment securities:

Floating rate auction-rate certificates backed by Government guaranteed student loans

19,482

Indicative bids

Range of broker quotes

99.0% - 99.0% (99.0%)

Farmer Mac Guaranteed Securities:

AgVantage

5,845,642

Discounted cash flow

Discount rate

4.4% - 5.1% (4.6%)

Farmer Mac Guaranteed Securities

8,456

Discounted cash flow

Discount rate

4.5%

CPR

USDA Securities

456

Discounted cash flow

Discount rate

4.9% - 5.1% (4.9%)

CPR

11% - 13% (12%)

Guarantee Asset

5,049

Discounted cash flow

Discount rate

4.5%

CPR

As of December 31, 2024

Financial Instruments

Fair Value

Valuation Technique

Unobservable Input

Range (Weighted-Average)

(in thousands)

Assets:

Investment securities:

Floating rate auction-rate certificates backed by Government guaranteed student loans

19,476

Indicative bids

Range of broker quotes

99.0% - 99.0% (99.0%)

Farmer Mac Guaranteed Securities:

AgVantage

5,505,531

Discounted cash flow

Discount rate

5.0% - 5.5% (5.1%)

Farmer Mac Guaranteed Securities

9,015

Discounted cash flow

Discount rate

7.9%

CPR

USDA Securities

818

Discounted cash flow

Discount rate

5.3% - 5.4% (5.3%)

CPR

12% - 12% (12%)

Guarantee Asset

5,382

Discounted cash flow

Discount rate

7.9%

CPR

Schedule of Fair Value, by Balance Sheet Grouping

The following table sets forth the estimated fair values and carrying values for financial assets, liabilities, and guarantees and commitments as of September 30, 2025 and December 31, 2024:

Table 9.4


	As of September 30, 2025				As of December 31, 2024
	Fair Value		Carrying Amount		Fair Value		Carrying Amount
	(in thousands)
Financial assets:
Cash and cash equivalents	$	901,023	$	901,023	$	1,024,007	$	1,024,007
Investment securities	6,679,390		6,679,104		5,973,571		5,973,301
Farmer Mac Guaranteed Securities	7,548,248		7,546,699		8,215,646		8,232,234
USDA Securities	2,249,616		2,389,636		2,113,342		2,371,352
Loans	15,297,680		15,361,990		12,924,604		13,204,638
Financial derivatives	32,667		32,667		27,789		27,789
Guarantee and commitment fees receivable	57,634		50,775		57,562		50,499
Financial liabilities:
Notes payable	28,824,748		29,196,780		26,759,873		27,371,174
Debt securities of consolidated trusts held by third parties	2,125,993		2,089,042		1,910,302		1,929,628
Financial derivatives	29,161		29,161		77,326		77,326
Guarantee and commitment obligations	55,284		48,426		55,388		48,326

- Definition

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

+ References + Details