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FAIR VALUE DISCLOSURES

9 Months Ended

Sep. 30, 2026

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 September 30, 2026 and December 31, 2025, respectively, and indicate the fair value hierarchy of the valuation techniques used by Farmer Mac to determine such fair value:

Table 8.1


Assets and Liabilities Measured at Fair Value as of September 30, 2026
	Level 1		Level 2		Level 3(1)		Total
	(in thousands)
Recurring:
Assets:
Investment Securities:
AFS:
Government/GSE guaranteed MBS	$	—	$	5,762,016	$	—	$	5,762,016
U.S. Treasuries	1,561,091		—		—		1,561,091
ABS	—		—		61,026		61,026
AgVantage	—		—		7,493,597		7,493,597
Interest-Only Farmer Mac Guaranteed Securities	—		—		7,843		7,843
Total AFS Investment Securities	1,561,091		5,762,016		7,562,466		14,885,573
Financial derivatives	—		19,912		—		19,912
Other Assets(2)	—		—		4,683		4,683
Total Assets at fair value	$	1,561,091	$	5,781,928	$	7,567,149	$	14,910,168
Liabilities:
Financial derivatives	$	44	$	219,853	$	—	$	219,897
Total Liabilities at fair value	$	44	$	219,853	$	—	$	219,897

(1) Level 3 assets represent 19% of total assets and 51% 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, 2025
	Level 1		Level 2		Level 3(1)		Total
	(in thousands)
Recurring:
Assets:
Investment Securities:
AFS:

Government/GSE guaranteed MBS	$	—	$	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 AFS 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.

There were no material assets or liabilities measured at fair value on a non-recurring basis as of September 30, 2026 or December 31, 2025.

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 three and nine months ended September 30, 2026 and 2025, 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 three and nine months ended September 30, 2026 and 2025.

Table 8.2


Level 3 Assets and Liabilities Measured at Fair Value For the Three Months Ended September 30, 2026
	Beginning Balance		Purchases		Settlements		Allowance for Losses		Realized and unrealized (losses)/gains included in Income		Unrealized (losses)/gains included in Other Comprehensive Income		Ending Balance
	(in thousands)
Recurring:
Assets:
Investment Securities:
AFS:
ABS	$	65,474	$	—	$	(4)	$	—	$	(4,404)	$	(40)	$	61,026
AgVantage	7,702,969		—		(30,045)		6		(189,525)		10,192		7,493,597
Interest-Only Farmer Mac Guaranteed Securities	8,126		—		(138)		—		—		(145)		7,843
Total AFS	7,776,569		—		(30,187)		6		(193,929)		10,007		7,562,466

Other Assets	4,852		—		(73)		—		(96)		—		4,683
Total Assets at fair value	$	7,781,421	$	—	$	(30,260)	$	6	$	(194,025)	$	10,007	$	7,567,149


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/(losses) included in Other Comprehensive Income		Ending Balance
	(in thousands)
Recurring:
Assets:
Investment Securities:
AFS:
Auction-rate certificates backed by Government guaranteed student loans	$	19,475	$	—	$	—	$	7	$	—	$	—	$	19,482
AgVantage	5,722,890		350,000		(249,516)		53		19,290		2,925		5,845,642
Interest-Only Farmer Mac Guaranteed Securities	8,613		—		(164)		—		—		7		8,456
Total AFS	5,750,978		350,000		(249,680)		60		19,290		2,932		5,873,580

Other Assets	5,141		—		(84)		—		(8)		—		5,049
Total Assets at fair value	$	5,756,119	$	350,000	$	(249,764)	$	60	$	19,282	$	2,932	$	5,878,629


Level 3 Assets and Liabilities Measured at Fair Value For the Nine Months Ended September 30, 2026
	Beginning Balance		Purchases		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:
AFS:
ABS	$	—	$	65,320	$	(5)	$	—	$	(5,034)	$	745	$	61,026
AgVantage	6,730,917		1,475,000		(458,142)		57		(247,377)		(6,858)		7,493,597
Interest-Only Farmer Mac Guaranteed Securities	8,203		—		(438)		—		—		78		7,843
Total AFS	6,739,120		1,540,320		(458,585)		57		(252,411)		(6,035)		7,562,466

Other Assets	4,897		—		(228)		—		14		—		4,683
Total Assets at fair value	$	6,744,017	$	1,540,320	$	(458,813)	$	57	$	(252,397)	$	(6,035)	$	7,567,149


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)/gains included in Other Comprehensive Income		Ending Balance
	(in thousands)
Recurring:
Assets:
Investment Securities:
AFS:
Auction-rate certificates backed by Government guaranteed student loans	$	19,476	$	—	$	—	$	6	$	—	$	—	$	19,482
AgVantage	5,505,531		750,000		(542,365)		98		139,168		(6,790)		5,845,642
Interest-Only Farmer Mac Guaranteed Securities	9,015		—		(504)		—		—		(55)		8,456
Total AFS	5,534,022		750,000		(542,869)		104		139,168		(6,845)		5,873,580

Other Assets	5,382		—		(255)		—		(78)		—		5,049
Total Assets at fair value	$	5,539,404	$	750,000	$	(543,124)	$	104	$	139,090	$	(6,845)	$	5,878,629

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, 2026 and December 31, 2025:

Table 8.3

As of September 30, 2026

Financial Instruments

Fair Value

Valuation Technique

Unobservable Input

Range
(Weighted-Average)

(in thousands)

Assets:

Investment securities:

ABS

61,026

Discounted cash flow

Discount rate

6.7% - 8.5% (7.9%)

AgVantage

7,493,597

Discounted cash flow

Discount rate

5.2% - 6.1% (5.7%)

Interest-Only Farmer Mac Guaranteed Securities

7,843

Discounted cash flow

Discount rate

8.5%

CPR

2.2%

Other Assets

4,683

Discounted cash flow

Discount rate

8.5%

CPR

2.2%

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

3.3%

Other Assets

4,897

Discounted cash flow

Discount rate

7.8%

CPR

3.3%

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 September 30, 2026 and December 31, 2025:

Table 8.4


	As of September 30, 2026
	Carrying Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Estimated Fair Value
	(in thousands)
Financial Assets:
Cash and cash equivalents	$	991,445	$	991,445	$	—	$	—	$	991,445
Investment securities	19,380,891		1,561,091		5,762,016		11,753,515		19,076,622
Loans	18,867,511		—		—		18,473,346		18,473,346
Financial derivatives	19,912		—		19,912		—		19,912
Guarantee and commitment fees receivable	56,272		—		—		59,431		59,431
Financial liabilities:
Notes payable	35,416,101		—		—		34,728,336		34,728,336
Debt securities of consolidated trusts held by third parties	2,115,699		—		—		2,053,297		2,053,297
Financial derivatives	219,897		44		219,853		—		219,897
Guarantee and commitment obligations	54,439		—		—		57,598		57,598


	As of December 31, 2025
	Carrying Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)	Significant Unobservable Inputs (Level 3)	Estimated Fair Value
	(in thousands)
Financial Assets:
Cash and cash equivalents	$	931,067	$	931,067	—	—	$	931,067
Investment securities	17,550,379		1,544,147		5,297,018	10,548,943	17,390,108
Loans	16,321,276		—		—	16,342,149	16,342,149
Financial derivatives	44,875		154		44,721	—	44,875
Guarantee and commitment fees receivable	57,214		—		—	63,677	63,677
Financial liabilities:
Notes payable	30,822,570		—		—	30,489,417	30,489,417
Debt securities of consolidated trusts held by third parties	2,365,435		—		—	2,420,149	2,420,149
Financial derivatives	21,618		15		21,603	—	21,618
Guarantee and commitment obligations	54,770		—		—	61,234	61,234

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References

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