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FAIR VALUE DISCLOSURES
 12 Months Ended
Dec. 31, 2025
Fair Value Disclosures [Abstract]  
FAIR VALUE DISCLOSURES FAIR VALUE DISCLOSURES
Fair Value Classification and Transfers

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

Table 11.1
Assets and Liabilities Measured at Fair Value as of December 31, 2025
 Level 1Level 2
Level 3(1)
Total
 (in thousands)
Recurring: 
Assets:    
Investment Securities:    
Available-for-sale:    
Government/GSE guaranteed mortgage-backed securities
$— $5,297,018 $— $5,297,018 
U.S. Treasuries
1,544,147 — — 1,544,147 
AgVantage— — 6,730,917 6,730,917 
Interest-Only Farmer Mac Guaranteed Securities
— — 8,203 8,203 
Total Available-for-sale Investment Securities1,544,147 5,297,018 6,739,120 13,580,285 
Financial derivatives154 44,721 — 44,875 
Other Assets(2)
— — 4,897 4,897 
Total Assets at fair value$1,544,301 $5,341,739 $6,744,017 $13,630,057 
Liabilities:    
Financial derivatives$15 $21,603 $— $21,618 
Total Liabilities at fair value$15 $21,603 $— $21,618 
(1) Level 3 assets represent 19% of total assets and 49% of financial instruments measured at fair value.
(2) Represents a retained beneficial interest related to transfers of financial assets.

Assets and Liabilities Measured at Fair Value as of December 31, 2024
 Level 1Level 2
Level 3(1)
Total
 (in thousands)
Recurring: 
Assets:    
Investment Securities:    
Available-for-sale:    
Auction-rate certificates backed by Government guaranteed student loans
$— $— $19,476 $19,476 
Government/GSE guaranteed mortgage-backed securities
— 4,643,692 — 4,643,692 
U.S. Treasuries
1,289,846 — — 1,289,846 
AgVantage— — 5,505,531 5,505,531 
Interest-Only Farmer Mac Guaranteed Securities
— — 9,015 9,015 
Total Available-for-sale Investment Securities1,289,846 4,643,692 5,534,022 11,467,560 
Loans:
Loans held for sale, at lower of cost or fair value— 6,160 — 6,160 
Total Loans
— 6,160 — 6,160 
Financial derivatives47 27,742 — 27,789 
Other Assets(2)
— — 5,382 5,382 
Total Assets at fair value$1,289,893 $4,677,594 $5,539,404 $11,506,891 
Liabilities:    
Financial derivatives$— $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.
(2) Represents a retained beneficial interest related to transfers of financial assets.
There were no material assets or liabilities measured at fair value on a non-recurring basis as of December 31, 2025 or 2024.

Transfers in and/or out of the different levels within the fair value hierarchy are based on the fair values of the assets and liabilities as of the beginning of the reporting period. During the years ended December 31, 2025 and 2024, there were no transfers within the fair value hierarchy.

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 years ended December 31, 2025, 2024, and 2023.

Table 11.2
Level 3 Assets and Liabilities Measured at Fair Value for the Year Ended December 31, 2025
Beginning BalancePurchasesSalesSettlementsAllowance for Losses
Realized and
unrealized (losses)/gains included in Income
Unrealized gains/(losses)
included in Other
Comprehensive
Income
Ending Balance
(in thousands)
Recurring:
Assets:
Investment Securities:
Available-for-sale:
Auction-rate certificates backed by Government guaranteed student loans
$19,476 $— $(19,537)$— $27 $(163)$197 $— 
AgVantage
5,505,531 2,013,475 — (923,198)106 130,539 4,464 6,730,917 
Interest-Only Farmer Mac Guaranteed Securities
9,015 — — (670)— — (142)8,203 
Total available-for-sale5,534,022 2,013,475 (19,537)(923,868)133 130,376 4,519 6,739,120 
Other Assets5,382 — — (341)— (144)— 4,897 
Total Assets at fair value$5,539,404 $2,013,475 $(19,537)$(924,209)$133 $130,232 $4,519 $6,744,017 
Level 3 Assets and Liabilities Measured at Fair Value for the Year Ended December 31, 2024
Beginning BalancePurchasesSettlementsAllowance for Losses
Realized and
unrealized losses included
in Income
Unrealized gains/(losses)
included in Other
Comprehensive
Income
Ending Balance
(in thousands)
Recurring:
Assets:
Investment Securities:
Available-for-sale:
Auction-rate certificates backed by Government guaranteed student loans
$19,082 $— $— $— $— $394 $19,476 
AgVantage5,522,712 677,400 (666,476)81 (49,727)21,541 5,505,531 
Interest-Only Farmer Mac Guaranteed Securities
9,767 — (699)— — (53)9,015 
Total available-for-sale5,551,561 677,400 (667,175)81 (49,727)21,882 5,534,022 
Other Assets5,831 — (343)— (106)— 5,382 
Total Assets at fair value$5,557,392 $677,400 $(667,518)$81 $(49,833)$21,882 $5,539,404 

Level 3 Assets and Liabilities Measured at Fair Value for the Year Ended December 31, 2023
Beginning BalancePurchasesSettlementsAllowance for Losses
Realized and
unrealized gains included
in Income
Unrealized gains/(losses) included in Other Comprehensive Income
Transfers Out(1)
Ending Balance
(in thousands)
Recurring:
Assets:
Investment Securities:
Available-for-sale:
Auction-rate certificates backed by Government guaranteed student loans
$19,027 $— $— $6 $— $49 $— $19,082 
AgVantage7,599,379 2,084,650 (1,561,507)230 89,629 (5,573)(2,684,096)5,522,712 
Interest-Only Farmer Mac Guaranteed Securities
7,847 — (1,213)— — 3,133 — 9,767 
Total available-for-sale7,626,253 2,084,650 (1,562,720)236 89,629 (2,391)(2,684,096)5,551,561 
Other Assets4,467 — (590)— 1,954 — — 5,831 
Total Assets at fair value$7,630,720 $2,084,650 $(1,563,310)$236 $91,583 $(2,391)$(2,684,096)$5,557,392 
(1) Includes $2.7 billion of AgVantage securities transferred from available-for-sale to held-to-maturity on July 1, 2023.
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 December 31, 2025 and 2024:

Table 11.3
As of December 31, 2025
Financial InstrumentsFair ValueValuation TechniqueUnobservable InputRange (Weighted-Average)
(in thousands)
Assets:
Investment securities:
AgVantage$6,730,917 Discounted cash flowDiscount rate
4.3% - 4.9% (4.5%)
Interest-Only Farmer Mac Guaranteed Securities$8,203 Discounted cash flowDiscount rate
7.8%
CPR
3%
Other Assets$4,897 Discounted cash flowDiscount rate
7.8%
CPR
3%

As of December 31, 2024
Financial InstrumentsFair ValueValuation TechniqueUnobservable InputRange (Weighted-Average)
(in thousands)
Assets:
Investment securities:
Auction-rate certificates backed by Government guaranteed student loans
$19,476 Indicative bidsRange of broker quotes
99.0% - 99.0% (99.0%)
AgVantage$5,505,531 Discounted cash flowDiscount rate
5.0% - 5.5% (5.1%)
Interest-Only Farmer Mac Guaranteed Securities$9,015 Discounted cash flowDiscount rate
7.9%
CPR
3%
Other Assets$5,382 Discounted cash flowDiscount rate
7.9%
CPR
3%

The significant unobservable input used in the fair value measurements of AgVantage securities is the discount rate commensurate with the risks involved. Typically, significant increases (decreases) in this input in isolation may result in materially lower (higher) fair value measurements. Generally, in a rising interest rate environment, Farmer Mac would expect average discount rates to increase. Conversely, in a declining interest rate environment, Farmer Mac would expect average discount rates to decrease. CPR are not presented in the table above for AgVantage securities because they generally have fixed maturity dates when the secured general obligations are due and do not prepay.
Disclosures on Fair Value of Financial Instruments

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

Table 11.4
 As of December 31, 2025As of December 31, 2024
 Fair ValueCarrying
Amount		Fair ValueCarrying
Amount
 (in thousands)
Financial assets:    
Cash and cash equivalents$931,067 $931,067 $1,024,007 $1,024,007 
Investment securities17,390,108 17,550,379 16,302,559 16,576,887 
Loans16,342,149 16,321,276 12,924,604 13,204,638 
Financial derivatives44,875 44,875 27,789 27,789 
Guarantee and commitment fees receivable63,677 57,214 57,562 50,499 
Financial liabilities:
Notes payable30,489,417 30,822,570 26,759,873 27,371,174 
Debt securities of consolidated trusts held by third parties2,420,149 2,365,435 1,910,302 1,929,628 
Financial derivatives21,618 21,618 77,326 77,326 
Guarantee and commitment obligations61,234 54,770 55,388 48,326 

The carrying value of cash and cash equivalents is a reasonable estimate of their approximate fair value and is classified as Level 1. The fair value of investments in U.S. Treasuries are valued based on unadjusted quoted prices in active markets and are classified as Level 1. A significant portion of Farmer Mac's investment portfolio is valued using a reputable nationally recognized third-party pricing service. The prices obtained are non-binding and generally representative of recent market trades and are classified as Level 2.

Farmer Mac internally models the fair value of its portfolio assets; including loans held for investment and loans held for investment in consolidated trusts, Farmer Mac Guaranteed Securities, and USDA Securities by discounting the projected cash flows of these instruments at projected interest rates. The fair values are based on the present value of expected cash flows using management's best estimate of certain key assumptions, which include prepayment speeds, forward yield curves and discount rates commensurate with the risks involved. These fair value measurements do not take into consideration the fair value of the underlying property and are classified as Level 3. Level 3 Farmer Mac Guaranteed Securities include our AgVantage securities for which we apply a discount rate in calculating the net present value of future expected cash flows that is both significant to the estimate of their fair value and unobservable in the market. We rely upon this significant unobservable input to estimate the fair value of AgVantage because there are no observable transactions in these securities in the market.

Financial derivatives primarily are valued using the market standard methodology of netting the discounted future fixed cash payments (or receipts) and the discounted expected variable cash receipts (or payments) and are classified as Level 2. The fair value of the guarantee fees receivable/obligation and debt securities of consolidated trusts are estimated based on the present value of expected future cash flows of the underlying mortgage assets using management's best estimate of certain key assumptions, which include prepayments speeds, forward yield curves, and discount rates commensurate with the risks involved and are classified as Level 3. Notes payable are valued by discounting the expected cash flows of
these instruments using a yield curve derived from market prices observed for similar agency securities and are also classified as Level 3. Because the cash flows of Farmer Mac's financial instruments may be interest rate path dependent, estimated fair values and projected discount rates for Level 3 financial instruments are derived using a Monte Carlo simulation model. Different market assumptions and estimation methodologies could significantly affect estimated fair value amounts.