FINANCIAL DERIVATIVES (Tables)

9 Months Ended

Sep. 30, 2026

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Derivative Instruments in Statement of Financial Position

The following tables summarize information related to Farmer Mac's financial derivatives on a gross basis without giving consideration to master netting arrangements. The table below includes accrued interest on cleared swaps, but excludes $40.9 million and $24.2 million of accrued interest receivable and $1.4 million and $2.4 million of accrued interest payable on uncleared swaps as of September 30, 2026 and

December 31, 2025, respectively. The aforementioned accrued interest on uncleared swaps is included within Accrued Interest Receivable and Accrued Interest Payable on the consolidated balance sheets.

Table 3.1

	As of September 30, 2026
			Fair Value				Weighted- Average Pay Rate	Weighted- Average Receive Rate	Weighted- Average Forward Price	Weighted- Average Remaining Term (in years)
	Notional Amount		Asset		(Liability)
	(dollars in thousands)
Fair value hedges:
Interest rate swaps:
Receive fixed non-callable	$	7,217,985	$	1,331	$	(1,847)	4.10%	3.85%		0.98
Pay fixed non-callable	12,382,796		9,465		(870)		3.00%	3.94%		8.34
Receive fixed callable	8,414,163		—		(217,975)		4.00%	3.98%		3.40
Cash flow hedges:
Interest rate swaps:
Pay fixed non-callable	392,000		9,298		(25)		1.88%	4.34%		2.64
No hedge designation:
Interest rate swaps:
Pay fixed non-callable	154,391		731		(61)		2.85%	4.16%		3.04
Receive fixed non-callable	1,179,477		63		(1)		3.95%	3.75%		0.25
Basis swaps	347,811		3		(53)		4.13%	4.07%		4.75
Treasury futures	6,000		—		(44)				104.94
Netting adjustments(1)	—		(979)		979
Total financial derivatives	$	30,094,623	$	19,912	$	(219,897)

(1)Amounts represent the application of the netting requirements that allow Farmer Mac to settle positive and negative positions, including accrued interest, held or placed with the same clearing agent.

	As of December 31, 2025
			Fair Value				Weighted- Average Pay Rate	Weighted- Average Receive Rate	Weighted- Average Forward Price	Weighted- Average Remaining Term (in years)
	Notional Amount		Asset		(Liability)
	(dollars in thousands)
Fair value hedges:
Interest rate swaps:
Receive fixed non-callable	$	6,388,935	$	330	$	(2,954)	4.08%	3.56%		1.12
Pay fixed non-callable	10,681,418		16,685		(168)		2.79%	3.93%		8.66
Receive fixed callable	5,446,883		19,322		(19,911)		3.96%	3.73%		3.14
Cash flow hedges:
Interest rate swaps:
Pay fixed non-callable	452,000		9,335		(1)		1.92%	4.22%		3.00
No hedge designation:
Interest rate swaps:
Pay fixed non-callable	159,684		613		(1)		2.88%	4.13%		3.61
Receive fixed non-callable	1,963,363		66		(9)		3.89%	3.93%		0.28
Basis swaps	382,811		1		(190)		4.13%	3.89%		5.03
Treasury futures	102,000		154		(15)				112.57
Netting adjustments(1)	—		(1,631)		1,631
Total financial derivatives	$	25,577,094	$	44,875	$	(21,618)

(1)Amounts represent the application of the netting requirements that allow Farmer Mac to settle positive and negative positions, including accrued interest, held or placed with the same clearing agent.

Schedule of Net Income/(Expense) Recognized

The following tables summarize the net income/(expense) recognized in the Consolidated Statements of Operations related to derivatives for the three and nine months ended September 30, 2026, and 2025:

Table 3.2

	For the Three Months Ended September 30, 2026
	Net Income/(Expense) Recognized in Consolidated Statement of Operations on Derivatives
	Net Interest Income						Non-Interest Income		Total
	Interest Income Investments and Cash Equivalents		Interest Income Loans		Total Interest Expense		Gains/(losses) on financial derivatives
	(in thousands)
Total amounts presented in the Consolidated Statement of Operations	$	229,611	$	242,881	$	(356,568)	$	1,515	$	117,439
Net effects of fair value hedging relationships:
Recognized on derivatives	$	246,656	$	168,181	$	(174,706)	$	—	$	240,131
Recognized on hedged items	(246,064)		(165,913)		174,096		—		(237,881)
Amounts related to interest settlements on derivatives	17,046		8,037		(3,622)		—		21,461
Net effects of fair value hedging relationships	$	17,638	$	10,305	$	(4,232)	$	—	$	23,711
Expense related to interest settlements on cash flow hedging relationships:
Interest settlements reclassified from AOCI into net income on derivatives	$	—	$	—	$	2,377	$	—	$	2,377
Net effects of cash flow hedges	$	—	$	—	$	2,377	$	—	$	2,377
Gains/(losses) on financial derivatives not designated in hedging relationships:
Gains on interest rate swaps	$	—	$	—	$	—	$	1,746	$	1,746
Interest expense on interest rate swaps	—		—		—		315		315
Treasury futures	—		—		—		(546)		(546)
Net effects of financial derivatives not designated in hedge relationships	$	—	$	—	$	—	$	1,515	$	1,515

	For the Three Months Ended September 30, 2025
	Net Income/(Expense) Recognized in Consolidated Statement of Operations on Derivatives
	Net Interest Income						Non-Interest Income		Total
	Interest Income Investments and Cash Equivalents		Interest Income Loans		Total Interest Expense		Gains/(losses) on financial derivatives
	(in thousands)
Total amounts presented in the Consolidated Statement of Operations	$	216,882	$	198,459	$	(316,864)	$	(1,062)	$	97,415
Net effects of fair value hedging relationships:
Recognized on derivatives	(27,117)		(10,864)		26,984		—		(10,997)
Recognized on hedged items	26,624		10,436		(26,200)		—		10,860
Amounts related to interest settlements on derivatives	30,545		12,857		(29,051)		—		14,351
Net effects of fair value hedging relationships	$	30,052	$	12,429	$	(28,267)	$	—	$	14,214
Expense related to interest settlements on cash flow hedging relationships:
Interest settlements reclassified from AOCI into net income on derivatives	$	—	$	—	$	3,593	$	—	$	3,593
Net effects of cash flow hedges	$	—	$	—	$	3,593	$	—	$	3,593
Gains/(losses) on financial derivatives not designated in hedging relationships:
Gains on interest rate swaps	$	—	$	—	$	—	$	474	$	474
Interest expense on interest rate swaps	—		—		—		(707)		(707)
Treasury futures	—		—		—		(829)		(829)
Net effects of financial derivatives not designated in hedge relationships	$	—	$	—	$	—	$	(1,062)	$	(1,062)

	For the Nine Months Ended September 30, 2026
	Net Income/(Expense) Recognized in Consolidated Statement of Operations on Derivatives
	Net Interest Income						Non-Interest Income		Total
	Interest Income Investments and Cash Equivalents		Interest Income Loans		Total Interest Expense		Gains/(losses) on financial derivatives
	(in thousands)
Total amounts presented in the Consolidated Statement of Operations	$	648,242	$	690,471	$	(1,003,318)	$	2,879	$	338,274
Net effects of fair value hedging relationships:
Recognized on derivatives	$	329,361	$	189,502	$	(265,924)	$	—	$	252,939
Recognized on hedged items	(329,302)		(186,905)		266,769		—		(249,438)
Amounts related to interest settlements on derivatives	49,356		24,060		(11,641)		—		61,775
Net effects of fair value hedging relationships	$	49,415	$	26,657	$	(10,796)	$	—	$	65,276
Expense related to interest settlements on cash flow hedging relationships:
Interest settlements reclassified from AOCI into net income on derivatives	$	—	$	—	$	7,307	$	—	$	7,307
Net effects of cash flow hedges	$	—	$	—	$	7,307	$	—	$	7,307
Gains/(losses) on financial derivatives not designated in hedging relationships:
Gains on interest rate swaps	$	—	$	—	$	—	$	924	$	924
Interest expense on interest rate swaps	—		—		—		1,840		1,840
Treasury futures	—		—		—		115		115
Net effects of financial derivatives not designated in hedge relationships	$	—	$	—	$	—	$	2,879	$	2,879

	For the Nine Months Ended September 30, 2025
	Net Income/(Expense) Recognized in Consolidated Statement of Operations on Derivatives
	Net Interest Income						Non-Interest Income		Total
	Interest Income Investments and Cash Equivalents		Interest Income Loans		Total Interest Expense		Gains/(losses) on financial derivatives
	(in thousands)
Total amounts presented in the Consolidated Statement of Operations:	$	640,515	$	555,262	$	(909,564)	$	(3,618)	$	282,595
Net effects of fair value hedging relationships:
Recognized on derivatives	$	(200,349)	$	(63,445)	$	144,818	$	—	$	(118,976)
Recognized on hedged items	199,660		64,277		(141,290)		—		122,647
Amounts related to interest settlements on derivatives	88,696		37,742		(85,320)		—		41,118
Gains/(losses) on fair value hedging relationships	$	88,007	$	38,574	$	(81,792)	$	—	$	44,789
Expense related to interest settlements on cash flow hedging relationships:
Interest settlements reclassified from AOCI into net income on derivatives	$	—	$	—	$	11,163	$	—	$	11,163
Expense recognized on cash flow hedges	$	—	$	—	$	11,163	$	—	$	11,163
Losses on financial derivatives not designated in hedge relationships:
Losses on interest rate swaps	$	—	$	—	$	—	$	(3,063)	$	(3,063)
Interest expense on interest rate swaps	—		—		—		(597)		(597)
Treasury futures	—		—		—		42		42
Losses on financial derivatives not designated in hedge relationships	$	—	$	—	$	—	$	(3,618)	$	(3,618)

Schedule of Hedged Items in Fair Value Hedging Relationships

The following table displays the carrying amount of the hedged items and associated cumulative basis adjustment related to the application of hedge accounting that is included in the carrying amount of hedged assets and liabilities in fair value hedging relationships as of September 30, 2026 and December 31, 2025:

Table 3.3

	Hedged Items in Fair Value Relationship
	Carrying Amount of Hedged Assets/(Liabilities)				Cumulative Amount of Fair Value Hedging Adjustments included in the Carrying Amount of the Hedged Assets/(Liabilities)
	September 30, 2026		December 31, 2025		September 30, 2026		December 31, 2025
	(in thousands)
Investment securities, AFS, at fair value(1)	$	8,387,284	$	7,818,278	$	(565,219)	$	(235,989)
Loans held for investment, at amortized cost(2)	3,399,845		2,278,212		(518,220)		(331,315)
Notes Payable(3)	(15,129,333)		(11,837,713)		260,078		(6,690)

(1)Amortized cost of $9.0 billion and $8.0 billion as of September 30, 2026 and December 31, 2025, respectively.

(2)As of September 30, 2026, closed portfolio of loans hedged under the portfolio layer method had an amortized cost of $0.8 billion, of which $244.2 million was designated as the hedged item. The remaining amount of amortized cost is from hedges not designated under the portfolio layer method. There were no portfolio layer hedges as of December 31, 2025.

(3)Carrying amount represents amortized cost.

Schedule of Offsetting Assets

The following tables present the fair value of financial assets and liabilities, based on the terms of Farmer Mac's master netting arrangements as of September 30, 2026 and December 31, 2025:

Table 3.4

	September 30, 2026
	Gross Amount Recognized		Gross Amounts offset in the Consolidated Balance Sheet		Net Amount Presented in the Consolidated Balance Sheet(1)		Gross Amounts Not Offset in the Consolidated Balance Sheet
							Netting Adjustments		Financial instruments pledged		Cash Collateral		Net Amount(2)
	(in thousands)
Assets:
Uncleared derivatives	$	9,924	$	—	$	9,924	$	(9,924)	$	—	$	—	$	—
Cleared derivatives	10,967		(979)		9,988		—		—		—		9,988
Total	$	20,891	$	(979)	$	19,912	$	(9,924)	$	—	$	—	$	9,988
Liabilities:
Uncleared derivatives	$	(196,117)	$	—	$	(196,117)	$	9,924	$	—	$	152,300	$	(33,893)
Cleared derivatives	(979)		979		—		—		—		—		—
Total	$	(197,096)	$	979	$	(196,117)	$	9,924	$	—	$	152,300	$	(33,893)

(1)Amounts presented may not agree to the consolidated balance sheet related to counterparties not subject to master netting agreements.

(2)Any over-collateralization at an individual clearing agent and/or counterparty level is not included in the determination of the net amount. As of September 30, 2026, Farmer Mac had additional net exposure of $308.0 million due to instances where Farmer Mac's collateral to a counterparty exceeded the net derivative position and no instances where Farmer Mac's collateral from a counterparty exceeded the net derivative position.

	December 31, 2025
	Gross Amount Recognized		Gross Amounts offset in the Consolidated Balance Sheet		Net Amount Presented in the Consolidated Balance Sheet(1)		Gross Amounts Not Offset in the Consolidated Balance Sheet
							Netting Adjustments		Financial instruments pledged		Cash Collateral		Net Amount(2)
	(in thousands)
Assets:
Uncleared derivatives	$	29,179	$	—	$	29,179	$	(15,601)	$	—	$	(11,684)	$	1,894
Cleared derivatives	17,242		(1,631)		15,611		—		(15,611)		—		—
Total	$	46,421	$	(1,631)	$	44,790	$	(15,601)	$	(15,611)	$	(11,684)	$	1,894
Liabilities:
Uncleared derivatives	$	(21,512)	$	—	$	(21,512)	$	15,601	$	—	$	2,093	$	(3,818)
Cleared derivatives	(1,631)		1,631		—		—		—		—		—
Total	$	(23,143)	$	1,631	$	(21,512)	$	15,601	$	—	$	2,093	$	(3,818)

(1)Amounts presented may not agree to the consolidated balance sheet related to counterparties not subject to master netting agreements.

(2)Any over-collateralization at an individual clearing agent and/or counterparty level is not included in the determination of the net amount. As of December 31, 2025, Farmer Mac had additional net exposure of $235.0 million due to instances where Farmer Mac's collateral to a counterparty exceeded the net derivative position and $16.9 million due to instances where Farmer Mac's collateral from a counterparty exceeded the net derivative position.

Schedule of Offsetting Liabilities

The following tables present the fair value of financial assets and liabilities, based on the terms of Farmer Mac's master netting arrangements as of September 30, 2026 and December 31, 2025:

Table 3.4

	September 30, 2026
	Gross Amount Recognized		Gross Amounts offset in the Consolidated Balance Sheet		Net Amount Presented in the Consolidated Balance Sheet(1)		Gross Amounts Not Offset in the Consolidated Balance Sheet
							Netting Adjustments		Financial instruments pledged		Cash Collateral		Net Amount(2)
	(in thousands)
Assets:
Uncleared derivatives	$	9,924	$	—	$	9,924	$	(9,924)	$	—	$	—	$	—
Cleared derivatives	10,967		(979)		9,988		—		—		—		9,988
Total	$	20,891	$	(979)	$	19,912	$	(9,924)	$	—	$	—	$	9,988
Liabilities:
Uncleared derivatives	$	(196,117)	$	—	$	(196,117)	$	9,924	$	—	$	152,300	$	(33,893)
Cleared derivatives	(979)		979		—		—		—		—		—
Total	$	(197,096)	$	979	$	(196,117)	$	9,924	$	—	$	152,300	$	(33,893)

(1)Amounts presented may not agree to the consolidated balance sheet related to counterparties not subject to master netting agreements.

(2)Any over-collateralization at an individual clearing agent and/or counterparty level is not included in the determination of the net amount. As of September 30, 2026, Farmer Mac had additional net exposure of $308.0 million due to instances where Farmer Mac's collateral to a counterparty exceeded the net derivative position and no instances where Farmer Mac's collateral from a counterparty exceeded the net derivative position.

	December 31, 2025
	Gross Amount Recognized		Gross Amounts offset in the Consolidated Balance Sheet		Net Amount Presented in the Consolidated Balance Sheet(1)		Gross Amounts Not Offset in the Consolidated Balance Sheet
							Netting Adjustments		Financial instruments pledged		Cash Collateral		Net Amount(2)
	(in thousands)
Assets:
Uncleared derivatives	$	29,179	$	—	$	29,179	$	(15,601)	$	—	$	(11,684)	$	1,894
Cleared derivatives	17,242		(1,631)		15,611		—		(15,611)		—		—
Total	$	46,421	$	(1,631)	$	44,790	$	(15,601)	$	(15,611)	$	(11,684)	$	1,894
Liabilities:
Uncleared derivatives	$	(21,512)	$	—	$	(21,512)	$	15,601	$	—	$	2,093	$	(3,818)
Cleared derivatives	(1,631)		1,631		—		—		—		—		—
Total	$	(23,143)	$	1,631	$	(21,512)	$	15,601	$	—	$	2,093	$	(3,818)

(1)Amounts presented may not agree to the consolidated balance sheet related to counterparties not subject to master netting agreements.

(2)Any over-collateralization at an individual clearing agent and/or counterparty level is not included in the determination of the net amount. As of December 31, 2025, Farmer Mac had additional net exposure of $235.0 million due to instances where Farmer Mac's collateral to a counterparty exceeded the net derivative position and $16.9 million due to instances where Farmer Mac's collateral from a counterparty exceeded the net derivative position.