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FAIR VALUE DISCLOSURES (Tables)

12 Months Ended

Dec. 31, 2025

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 1		Level 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 Securities	1,544,147		5,297,018		6,739,120		13,580,285
Financial derivatives	154		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 1		Level 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 Securities	1,289,846		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 derivatives	47		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.

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 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 Balance		Purchases		Sales		Settlements		Allowance 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-sale	5,534,022		2,013,475		(19,537)		(923,868)		133		130,376		4,519		6,739,120

Other Assets	5,382		—		—		(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 Balance		Purchases		Settlements		Allowance 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
AgVantage	5,522,712		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-sale	5,551,561		677,400		(667,175)		81		(49,727)		21,882		5,534,022

Other Assets	5,831		—		(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 Balance		Purchases		Settlements		Allowance 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
AgVantage	7,599,379		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-sale	7,626,253		2,084,650		(1,562,720)		236		89,629		(2,391)		(2,684,096)		5,551,561

Other Assets	4,467		—		(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.

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 December 31, 2025 and 2024:

Table 11.3

As of December 31, 2025

Financial Instruments

Fair Value

Valuation Technique

Unobservable Input

Range (Weighted-Average)

(in thousands)

Assets:

Investment securities:

AgVantage

6,730,917

Discounted cash flow

Discount rate

4.3% - 4.9% (4.5%)

Interest-Only Farmer Mac Guaranteed Securities

8,203

Discounted cash flow

Discount rate

7.8%

CPR

Other Assets

4,897

Discounted cash flow

Discount rate

7.8%

CPR

As of December 31, 2024

Financial Instruments

Fair Value

Valuation Technique

Unobservable Input

Range (Weighted-Average)

(in thousands)

Assets:

Investment securities:

Auction-rate certificates backed by Government guaranteed student loans

19,476

Indicative bids

Range of broker quotes

99.0% - 99.0% (99.0%)

AgVantage

5,505,531

Discounted cash flow

Discount rate

5.0% - 5.5% (5.1%)

Interest-Only Farmer Mac Guaranteed Securities

9,015

Discounted cash flow

Discount rate

7.9%

CPR

Other Assets

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 December 31, 2025 and 2024:

Table 11.4


	As of December 31, 2025				As of December 31, 2024
	Fair Value		Carrying Amount		Fair Value		Carrying Amount
	(in thousands)
Financial assets:
Cash and cash equivalents	$	931,067	$	931,067	$	1,024,007	$	1,024,007
Investment securities	17,390,108		17,550,379		16,302,559		16,576,887
Loans	16,342,149		16,321,276		12,924,604		13,204,638
Financial derivatives	44,875		44,875		27,789		27,789
Guarantee and commitment fees receivable	63,677		57,214		57,562		50,499
Financial liabilities:
Notes payable	30,489,417		30,822,570		26,759,873		27,371,174
Debt securities of consolidated trusts held by third parties	2,420,149		2,365,435		1,910,302		1,929,628
Financial derivatives	21,618		21,618		77,326		77,326
Guarantee and commitment obligations	61,234		54,770		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