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LOANS

6 Months Ended

Jun. 30, 2026

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 displays the composition of the loan balances as of June 30, 2026 and December 31, 2025:

Table 4.1


	As of June 30, 2026						As of December 31, 2025
	Unsecuritized		In Consolidated Trusts		Total		Unsecuritized		In Consolidated Trusts		Total
	(in thousands)
Agricultural Finance loans
Farm & Ranch	$	7,026,466	$	2,325,798	$	9,352,264	$	6,002,738	$	2,482,010	$	8,484,748
Corporate AgFinance	1,512,959		—		1,512,959		1,460,691		—		1,460,691
Total Agricultural Finance loans	8,539,425		2,325,798		10,865,223		7,463,429		2,482,010		9,945,439
Infrastructure Finance loans	7,753,872		—		7,753,872		6,761,081		—		6,761,081
Total unpaid principal balance(1)	16,293,297		2,325,798		18,619,095		14,224,510		2,482,010		16,706,520
Unamortized premiums, discounts, fair value hedge basis adjustment, and other cost basis adjustments	(391,084)		—		(391,084)		(347,459)		—		(347,459)
Total loans	15,902,213		2,325,798		18,228,011		13,877,051		2,482,010		16,359,061
Allowance for losses	(45,213)		(1,954)		(47,167)		(36,673)		(1,112)		(37,785)
Total loans, net of allowance	$	15,857,000	$	2,323,844	$	18,180,844	$	13,840,378	$	2,480,898	$	16,321,276

(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 June 30, 2026 and December 31, 2025:

Table 4.2


	June 30, 2026		December 31, 2025
	Allowance for Losses		Allowance for Losses
	(in thousands)
Loans:
Agricultural Finance loans
Farm & Ranch	$	15,472	$	9,400
Corporate AgFinance	7,211		6,631

Infrastructure Finance loans	24,484		21,754
Total	$	47,167	$	37,785

The following is a summary of the changes in the allowance for losses for the three and six months ended June 30, 2026 and 2025:

Table 4.3


	June 30, 2026								June 30, 2025
	Agricultural Finance loans				Infrastructure Finance loans(3)		Total		Agricultural Finance loans				Infrastructure Finance loans(3)		Total
	Farm & Ranch(1)		Corporate AgFinance(2)						Farm & Ranch(1)		Corporate AgFinance(2)
	(in thousands)














For the Three Months Ended
Beginning Balance	$	12,324	$	6,421	$	21,175	$	39,920	$	5,071	$	6,298	$	13,687	$	25,056
Provision for losses	3,190		544		3,309		7,043		4,404		605		2,691		7,700
Charge-offs	(42)		—		—		(42)		(2,840)		—		—		(2,840)
Recovery	—		246		—		246		—		40		—		40
Ending Balance	$	15,472	$	7,211	$	24,484	$	47,167	$	6,635	$	6,943	$	16,378	$	29,956

For the Six Months Ended
Beginning Balance	$	9,400	$	6,631	$	21,754	$	37,785	$	5,132	$	5,379	$	12,712	$	23,223
Provision for losses	6,114		2,509		2,730		11,353		4,343		1,441		3,666		9,450
Charge-offs	(42)		(2,175)		—		(2,217)		(2,840)		—		—		(2,840)
Recovery	—		246		—		246		—		123		—		123
Ending Balance	$	15,472	$	7,211	$	24,484	$	47,167	$	6,635	$	6,943	$	16,378	$	29,956

(1)As of June 30, 2026 and 2025, the allowance for losses for Agricultural Finance Farm & Ranch loans includes $7.6 million and $1.7 million allowance for collateral dependent assets ("CDA") secured by agricultural real estate, respectively.

(2)As of June 30, 2026 and 2025 the allowance for losses for Agricultural Finance Corporate AgFinance loans includes $0.0 million and $1.0 million allowance for CDA secured by agricultural real estate, respectively.

(3)As of June 30, 2026 and 2025 the allowance for losses for Infrastructure Finance loans includes $5.2 million and $0.0 million allowance for CDA.

The $7.0 million and $11.4 million provision to the allowance during the three and six months ended June 30, 2026 is primarily attributed to new volume growth across all of our segments and portfolio credit migration.

The $7.7 million and $9.5 million net provision to the allowance during the three and six months ended June 30, 2025 was primarily attributable to borrower specific downgrades and new volume growth.

The following table presents the unpaid principal balances by delinquency status of Farmer Mac's loans as of June 30, 2026 and December 31, 2025:

Table 4.4


	As of June 30, 2026
	Accruing
	Current		30-59 Days		60-89 Days		90 Days and Greater		Total Past Due		Nonaccrual Loans(2)(3)		Total Loans
	(in thousands)
Loans(1):
Agricultural Finance loans
Farm & Ranch	$	9,068,619	$	35,846	$	16,335	$	13,023	$	65,204	$	218,441	$	9,352,264
Corporate AgFinance	1,499,615		5,039		—		—		5,039		8,305		1,512,959
Total Agricultural Finance loans	10,568,234		40,885		16,335		13,023		70,243		226,746		10,865,223
Infrastructure Finance loans	7,740,485		—		—		—		—		13,387		7,753,872
Total	$	18,308,719	$	40,885	$	16,335	$	13,023	$	70,243	$	240,133	$	18,619,095

(1)Current loan amounts are presented based on contractual unpaid principal balance, while past due loan amounts are presented based on unpaid principal less charge-offs.

(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 $52.4 million of nonaccrual loans for which there was no associated allowance. During the three and six months ended June 30, 2026, Farmer Mac received $12.2 million and $15.8 million, respectively, in interest on nonaccrual loans.


	As of December 31, 2025
	Accruing
	Current		30-59 Days		60-89 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 AgFinance	1,415,507		—		—		—		—		45,184		1,460,691
Total Agricultural Finance loans	9,686,683		21,209		8,595		4,290		34,094		224,662		9,945,439
Infrastructure Finance loans	6,747,694		—		—		—		—		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 unpaid principal less charge-offs.

(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 $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.

Credit Quality Indicators

The following tables present credit quality indicators related to Agricultural Finance mortgage loans and Infrastructure Finance loans held as of June 30, 2026 and December 31, 2025, by year of origination:

Table 4.5


	As of June 30, 2026
	Year of Origination:
	2026		2025		2024		2023		2022		Prior		Revolving Loans - Amortized Cost Basis		Total
	(in thousands)
Agricultural Finance - Farm & Ranch loans(1):
Internally Assigned Risk Rating:
Acceptable	$	1,179,572	$	1,382,760	$	849,308	$	415,481	$	864,906	$	3,190,091	$	417,909	$	8,300,027
Special mention(2)	126,033		269,230		74,070		23,445		24,328		90,019		29,384		636,509
Substandard(3)	2,778		34,091		65,733		37,569		72,498		178,924		24,135		415,728
Total	$	1,308,383	$	1,686,081	$	989,111	$	476,495	$	961,732	$	3,459,034	$	471,428	$	9,352,264

For the Three Months Ended June 30, 2026:
Current period charge-offs	$	—	$	—	$	—	$	—	$	—	$	42	$	—	$	42

For the Six Months Ended June 30, 2026:
Current period charge-offs	$	—	$	—	$	—	$	—	$	—	$	42	$	—	$	42

(1)Current loan amounts are presented based on contractual unpaid principal balance, while past due loan amounts are presented based on unpaid principal less charge-offs.

(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 June 30, 2026
	Year of Origination:
	2026		2025		2024		2023		2022		Prior		Revolving Loans - Amortized Cost Basis		Total
	(in thousands)
Agricultural Finance - Corporate AgFinance(1):
Internally Assigned Risk Rating:
Acceptable	$	101,157	$	331,570	$	164,404	$	91,867	$	57,269	$	358,267	$	261,805	$	1,366,339
Special mention(2)	16,250		—		11,360		—		—		26,377		13,524		67,511
Substandard(3)	—		—		4,608		25,125		—		38,683		10,693		79,109
Total	$	117,407	$	331,570	$	180,372	$	116,992	$	57,269	$	423,327	$	286,022	$	1,512,959

For the Three Months Ended June 30, 2026:
Current period charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

For the Six Months Ended June 30, 2026:
Current period charge-offs	$	—	$	—	$	—	$	—	$	—	$	1,828	$	347	$	2,175

(1)Current loan amounts are presented based on contractual unpaid principal balance, while past due loan amounts are presented based on unpaid principal less charge-offs.

(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 June 30, 2026
	Year of Origination:
	2026		2025		2024		2023		2022		Prior		Revolving Loans - Amortized Cost Basis		Total
	(in thousands)
Infrastructure Finance loans(1):
Internally Assigned Risk Rating:
Acceptable	$	988,839	$	1,667,565	$	1,229,605	$	531,090	$	413,867	$	1,749,838	$	994,128	$	7,574,932
Special mention(2)	—		—		—		18,863		50,554		52,999		—		122,416
Substandard(3)	—		—		—		27,830		28,694		—		—		56,524
Total	$	988,839	$	1,667,565	$	1,229,605	$	577,783	$	493,115	$	1,802,837	$	994,128	$	7,753,872

For the Three Months Ended June 30, 2026:
Current period charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

For the Six Months Ended June 30, 2026:
Current period charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

(1)Current loan amounts are presented based on contractual unpaid principal balance, while past due loan amounts are presented based on unpaid principal less charge-offs.

(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:
	2025		2024		2023		2022		2021		Prior		Revolving Loans - Amortized Cost Basis		Total
	(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 Three Months Ended June 30, 2025:
Current period charge-offs	$	—	$	—	$	—	$	—	$	—	$	1,165	$	1,675	$	2,840

For the Six Months Ended June 30, 2025:
Current period charge-offs	$	—	$	—	$	—	$	—	$	—	$	1,165	$	1,675	$	2,840

(1)Current loan amounts are presented based on contractual unpaid principal balance, while past due loan amounts are presented based on unpaid principal less charge-offs.

(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:
	2025		2024		2023		2022		2021		Prior		Revolving Loans - Amortized Cost Basis		Total
	(in thousands)
Agricultural Finance - Corporate AgFinance loans(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 Three Months Ended June 30, 2025:
Current period charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

For the Six Months Ended June 30, 2025:
Current period charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

(1)Current loan amounts are presented based on contractual unpaid principal balance, while past due loan amounts are presented based on unpaid principal less charge-offs.

(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:
	2025		2024		2023		2022		2021		Prior		Revolving Loans - Amortized Cost Basis		Total
	(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 Three Months Ended June 30, 2025:
Current period charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

For the Six Months Ended June 30, 2025:
Current period charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

(1)Current loan amounts are presented based on contractual unpaid principal balance, while past due loan amounts are presented based on unpaid principal less charge-offs.

(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 part of its loss mitigation activities, Farmer Mac may agree to modify the contractual terms of loans to borrowers experiencing financial difficulty. These modifications generally consist of payment deferrals and, less frequently, term extensions.

The impact of modifications granted to borrowers experiencing financial difficulty and their subsequent performance is incorporated into Farmer Mac’s allowance methodology. Post-modification performance is monitored through payment performance, delinquency status, risk ratings, collateral values, and collection activity, with changes in these factors reflected in the allowance for credit losses.

The disclosures below are presented beginning in the current period. Comparable prior-period information has not been presented because the related activity was not material in prior periods.

The following table presents the amortized cost and the weighted average financial effect of modifications, as of June 30, 2026 granted to Agricultural Finance and Infrastructure Finance borrowers experiencing financial difficulty during the three and six months ended June 30, 2026:

Table 4.6


	June 30, 2026
	Payment Deferrals(1)			Term Extensions(1)			Total(3)		Percentage of Total by Financing Class
	Amount		Financial Effect(2)	Amount		Financial Effect(2)
	(dollars in thousands)
For the Three Months Ended
Agricultural Finance(4):
Farm & Ranch	$	28,522	6 months	$	2,700	60 months	$	31,222	0.33	%



Infrastructure Finance	$	13,387	3 months	$	—	—	$	13,387	0.17	%

For the Six Months Ended
Agricultural Finance:
Farm & Ranch	$	30,500	6 months	$	2,700	60 months	$	33,200	0.35	%



Infrastructure Finance	$	13,387	4 months	$	—	—	$	13,387	0.17	%

(1)Amounts presented are the amortized cost of modified loans, excluding modified loans that were paid off, charged off, or otherwise liquidated as of June 30, 2026.

(2)Represents the weighted average of payment deferrals and term extensions, in months, as a result of the modification granted.

(3)The unfunded lending commitments on the modifications granted during the six months ended June 30, 2026 were $2.2 million.

(4)There were no modifications within the Corporate AgFinance segment during the periods presented above.

The following table presents the performance of the loans under the modified terms as of June 30, 2026, of loan modifications granted during the six months preceding June 30, 2026:

Table 4.7


	As of June 30, 2026
	Current		30-59 Days		60-89 Days		90 Days and Greater		Total Past Due		Total Loans
	(in thousands)
Agricultural Finance(1)(2):
Farm & Ranch	$	21,663	$	567	$	—	$	10,970	$	11,537	$	33,200



Infrastructure Finance(1)(2)	$	13,387	$	—	$	—	$	—	$	—	$	13,387

(1)Current loan amounts are presented based on contractual amortized cost, while past due loan amounts are presented at the contractual amortized cost less charge-offs.

(2)Amounts presented are the amortized cost of modified loans, excluding modified loans that were paid off, charged off, or otherwise liquidated as of June 30, 2026.

Farmer Mac generally considers modifications to borrowers experiencing financial difficulty to have subsequently defaulted when the modified loan becomes 90 days past due following the modification. Loans that subsequently defaulted during both the three and six month periods ended June 30, 2026 totaled $11.0 million.