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LOANS
 12 Months Ended
Dec. 31, 2025
Receivables [Abstract]  
LOANS LOANS
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.

Under the Agricultural Finance line of business, Farmer Mac has two segments – Farm & Ranch and Corporate AgFinance. Farmer Mac monitors and assesses credit risk for each segment, recognizing the different credit risk profiles within each segment.

The following table includes loans held for investment and loans held for sale and displays the composition of the loan balances as of December 31, 2025 and 2024:

Table 7.1
As of December 31, 2025As of December 31, 2024
UnsecuritizedIn Consolidated TrustsTotalUnsecuritizedIn Consolidated TrustsTotal
(in thousands)
Agricultural Finance loans
Farm & Ranch$6,002,738 $2,482,010 $8,484,748 $5,414,732 $2,038,283 $7,453,015 
Corporate AgFinance1,460,691 — 1,460,691 1,381,674 — 1,381,674 
Total Agricultural Finance loans7,463,429 2,482,010 9,945,439 6,796,406 2,038,283 8,834,689 
Infrastructure Finance loans6,761,081 — 6,761,081 4,774,483 — 4,774,483 
Total unpaid principal balance(1)
14,224,510 2,482,010 16,706,520 11,570,889 2,038,283 13,609,172 
Unamortized premiums, discounts, fair value hedge basis adjustment, and other cost basis adjustments(347,459)— (347,459)(381,311)— (381,311)
Total loans13,877,051 2,482,010 16,359,061 11,189,578 2,038,283 13,227,861 
Allowance for losses(36,673)(1,112)(37,785)(22,594)(629)(23,223)
Total loans, net of allowance$13,840,378 $2,480,898 $16,321,276 $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 December 31, 2025 and 2024:

Table 7.2
December 31, 2025December 31, 2024
Allowance for LossesAllowance for Losses
(in thousands)
Loans:
Agricultural Finance loans
Farm & Ranch$9,400 $5,132 
Corporate AgFinance6,631 5,379 
Total Agricultural Finance loans
16,031 10,511 
Infrastructure Finance loans21,754 12,712 
Total$37,785 $23,223 

The following is a summary of the changes in the allowance for losses for each year in the three-year period ended December 31, 2025:

Table 7.3
Agricultural Finance loans
Infrastructure
Finance loans(3)
Farm & Ranch(1)
Corporate AgFinance(2)
Total
(in thousands)
Balance as of December 31, 2022
$4,044 $2,731 $6,775 $8,314 
(Release of)/provision for losses(108)217 109 833 
Charge-offs— — — — 
Balance as of December 31, 2023
$3,936 $2,948 $6,884 $9,147 
Provision for losses
1,297 6,828 8,125 3,565 
Charge-offs(101)(4,397)(4,498)— 
Balance as of December 31, 2024
$5,132 $5,379 $10,511 $12,712 
Provision for losses
8,657 15,394 24,051 9,042 
Charge-offs(6,064)(14,819)(20,883)— 
Recovery
1,675 677 2,352 — 
Balance as of December 31, 2025
$9,400 $6,631 $16,031 $21,754 
(1)As of December 31, 2025, 2024, and 2023, the allowance for losses for Agricultural Finance Farm & Ranch loans includes $1.6 million, $1.2 million, and $1.0 million allowance for collateral dependent assets secured by agricultural real estate, respectively.
(2)As of December 31, 2025, 2024, and 2023, the allowance for losses for Agricultural Finance Corporate AgFinance loans includes $1.0 million, $1.0 million, and $0.0 million allowance for collateral dependent assets secured by agricultural real estate, respectively.
(3)As of December 31, 2025, the allowance for losses for Infrastructure Finance loans includes $5.2 million allowance for collateral dependent assets. As of December 31, 2024 and 2023 there was no allowance for collateral dependent assets.

The $24.1 million net provision to the allowance for the Agricultural Finance mortgage loan portfolio during the year ended December 31, 2025 primarily consisted of:

•$14.6 million related to individually significant credit deteriorations within the Corporate AgFinance portfolio, which we also charged off because we deemed these amounts to be uncollectible.
•$5.0 million related to credit deterioration within the Farm & Ranch portfolio, of which we had a net charge off of $4.4 million because we deemed that amount to be uncollectible.

•The remainder was attributable to net volume growth during 2025.

The $9.0 million net provision to the allowance for the Infrastructure Finance portfolio during year ended December 31, 2025 was primarily attributable to $5.1 million in individually significant credit deterioration in the Broadband Infrastructure portfolio and $3.9 million in net volume growth.

The $8.1 million net provision to the allowance for the Agricultural Finance mortgage loan portfolio during the year ended December 31, 2024 was primarily attributable to two permanent planting borrower relationships and other risk rating downgrades. During the year ended December 31, 2024, Farmer Mac had charge-offs of $4.5 million, which was primarily related to a single permanent planting borrower that entered into bankruptcy during second quarter 2024, at which time $3.9 million was deemed uncollectible.

The $3.6 million net provision to the allowance for the Infrastructure Finance portfolio during the year ended December 31, 2024 was primarily attributable to new loan volume within the Broadband Infrastructure and Renewable Energy segments and a single renewable energy project that became substandard during fourth quarter 2024.

The $0.1 million net provision to the allowance for the Agricultural Finance mortgage loan portfolio during the year ended December 31, 2023 was primarily attributable to increased loan volume.

The $0.8 million net provision to the allowance for the Infrastructure Finance portfolio during the year ended December 31, 2023 was primarily attributable to a single telecommunications loan that was downgraded to substandard during the year.

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

Table 7.4
As of December 31, 2025
Accruing
Current30-59 Days60-89 Days
90 Days and Greater
Total Past Due
Nonaccrual Loans(2)(3)
Total Loans
(in thousands)
Loans(1):
Agricultural Finance loans
Farm & Ranch$8,271,176 $21,209 $8,595 $4,290 $34,094 $179,478 $8,484,748 
Corporate AgFinance1,415,507 — — — — 45,184 1,460,691 
Total Agricultural Finance loans9,686,683 21,209 8,595 4,290 34,094 224,662 9,945,439 
Infrastructure Finance loans6,747,694 — — — — 13,387 6,761,081 
Total $16,434,377 $21,209 $8,595 $4,290 $34,094 $238,049 $16,706,520 
(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 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.
(3)Includes $59.2 million of nonaccrual loans for which there was no associated allowance. During the year ended December 31, 2025, Farmer Mac received $6.5 million in interest on nonaccrual loans, respectively.
As of December 31, 2024
Accruing
Current30-59 Days60-89 Days
90 Days and Greater
Total Past Due
Nonaccrual Loans(2)(3)
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 AgFinance1,336,305 — — — — 45,369 1,381,674 
Total Agricultural Finance loans8,635,669 16,478 7,268 6,359 30,105 168,915 8,834,689 
Infrastructure Finance loans4,774,483 — — — — — 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)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.
(3)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 December 31, 2025 and 2024, by year of origination:

Table 7.5
As of December 31, 2025
Year of Origination:
20252024202320222021PriorRevolving Loans - Amortized Cost BasisTotal
(in thousands)
Agricultural Finance - Farm & Ranch loans(1):
Internally Assigned Risk Rating:
Acceptable$1,474,950 $938,955 $451,188 $921,048 $1,447,158 $1,964,423 $418,798 $7,616,520 
Special mention(2)
260,579 95,950 28,693 37,269 25,928 35,505 22,958 506,882 
Substandard(3)
17,583 40,618 35,538 71,201 33,835 140,445 22,126 361,346 
Total$1,753,112 $1,075,523 $515,419 $1,029,518 $1,506,921 $2,140,373 $463,882 $8,484,748 
For the Year Ended December 31, 2025:
Current period charge-offs$— $— $— $1,321 $721 $2,347 $1,675 $6,064 
(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, 2025
Year of Origination:
20252024202320222021PriorRevolving Loans - Amortized Cost BasisTotal
(in thousands)
Agricultural Finance - Corporate AgFinance(1):
Internally Assigned Risk Rating:
Acceptable$364,140 $177,260 $120,428 $58,073 $131,421 $232,710 $212,487 $1,296,519 
Special mention(2)
— 16,514 7,273 — — 45,753 17,954 87,494 
Substandard(3)
— — 5,658 — 9,870 41,933 19,217 76,678 
Total$364,140 $193,774 $133,359 $58,073 $141,291 $320,396 $249,658 $1,460,691 
For the Year Ended December 31, 2025:
Current period charge-offs$— $— $— $— $13,210 $— $1,609 $14,819 
(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, 2025
Year of Origination:
20252024202320222021PriorRevolving Loans - Amortized Cost BasisTotal
(in thousands)
Infrastructure Finance loans(1):
Internally Assigned Risk Rating:
Acceptable$1,652,127 $1,238,560 $578,518 $488,572 $175,962 $1,668,596 $829,382 $6,631,717 
Special mention(2)
— — 18,863 37,244 — — — 56,107 
Substandard(3)
— — 27,903 45,354 — — — 73,257 
Total $1,652,127 $1,238,560 $625,284 $571,170 $175,962 $1,668,596 $829,382 $6,761,081 
For the Year Ended December 31, 2025:
Current period charge-offs$— $— $— $— $— $— $— $— 
(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)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:
20242023202220212020PriorRevolving Loans - Amortized Cost BasisTotal
(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 $7,453,015 
For the Year Ended December 31, 2024:
Current period charge-offs$— $— $— $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:
20242023202220212020PriorRevolving Loans - Amortized Cost BasisTotal
(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 $1,381,674 
For the Year Ended December 31, 2024:
Current period charge-offs$— $— $455 $— $— $— $3,942 $4,397 
(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:
20242023202220212020PriorRevolving Loans - Amortized Cost BasisTotal
(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 $4,774,483 
For the Year Ended December 31, 2024:
Current period charge-offs$— $— $— $— $— $— $— $— 
(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)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.


Loan Modifications to Borrowers Experiencing Financial Difficulty

As a part of our loss mitigation activities, Farmer Mac may agree to the modify the contractual terms of loans to borrowers experiencing financial difficulty. These modifications generally include payment deferrals, capitalization of interest, and extensions of maturities.

During the years ended December 31, 2025, 2024, and 2023, within Agricultural Finance - Farm & Ranch loans, Farmer Mac modified loans to borrowers experiencing financial difficulty with aggregate unpaid principal balances of $33.8 million, $47.7 million, and $18.4 million, respectively. These amounts represented approximately 0.40%, 0.64%, and 0.28% of the total Farm & Ranch loan portfolio for each respective year.

There were no modifications to borrowers experiencing financial difficulty within the Agricultural Finance - Corporate AgFinance loans portfolio during the years ended December 31, 2025, 2024, and 2023.

During the year ended December 31, 2025, within Infrastructure Finance loans, Farmer Mac modified loans to borrowers experiencing financial difficulty with aggregate unpaid principal balances of $13.2 million, which represented approximately 0.19% of the Infrastructure Finance loans portfolio. There were no modifications to borrowers experiencing financial difficulty within the Infrastructure Finance loans portfolio during the years ended December 31, 2024 and 2023.

The weighted‑average internal risk ratings for both the Agricultural Finance and Infrastructure Finance population of modified loans as of December 31, 2025 and 2024, were within the "substandard" internally assigned risk rating category. For additional information regarding Farmer Mac’s internally assigned risk ratings, see Table 7.5.