v3.26.1
LOANS
 3 Months Ended
Mar. 31, 2026
Receivables [Abstract]  
LOANS LOANS
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 March 31, 2026 and December 31, 2025:
Table 4.1
As of March 31, 2026As of December 31, 2025
UnsecuritizedIn Consolidated TrustsTotalUnsecuritizedIn Consolidated TrustsTotal
(in thousands)
Agricultural Finance loans
Farm & Ranch$6,477,745 $2,391,027 $8,868,772 $6,002,738 $2,482,010 $8,484,748 
Corporate AgFinance1,502,771 — 1,502,771 1,460,691 — 1,460,691 
Total Agricultural Finance loans7,980,516 2,391,027 10,371,543 7,463,429 2,482,010 9,945,439 
Infrastructure Finance loans7,234,015 — 7,234,015 6,761,081 — 6,761,081 
Total unpaid principal balance(1)
15,214,531 2,391,027 17,605,558 14,224,510 2,482,010 16,706,520 
Unamortized premiums, discounts, fair value hedge basis adjustment, and other cost basis adjustments(354,003)— (354,003)(347,459)— (347,459)
Total loans14,860,528 2,391,027 17,251,555 13,877,051 2,482,010 16,359,061 
Allowance for losses(38,274)(1,646)(39,920)(36,673)(1,112)(37,785)
Total loans, net of allowance$14,822,254 $2,389,381 $17,211,635 $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 March 31, 2026 and December 31, 2025:

Table 4.2
March 31, 2026December 31, 2025
Allowance for LossesAllowance for Losses
(in thousands)
Loans:
Agricultural Finance loans
Farm & Ranch$12,324 $9,400 
Corporate AgFinance6,421 6,631 
Infrastructure Finance loans21,175 21,754 
Total$39,920 $37,785 
The following is a summary of the changes in the allowance for losses for the three months ended March 31, 2026 and 2025:

Table 4.3
For the Three Months Ended
March 31, 2026March 31, 2025
Agricultural Finance loans
Infrastructure
Finance loans(3)
TotalAgricultural 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$9,400 $6,631 $21,754 $37,785 $5,132 $5,379 $12,712 $23,223 
Provision for losses
2,924 1,965 (579)4,310 (61)836 975 1,750 
Charge-offs— (2,175)— (2,175)— — — — 
Recovery
— — — — — 83 — 83 
Ending Balance$12,324 $6,421 $21,175 $39,920 $5,071 $6,298 $13,687 $25,056 
(1)As of March 31, 2026 and 2025, the allowance for losses for Agricultural Finance Farm & Ranch loans includes $3.1 million and $0.7 million allowance for collateral dependent assets ("CDA") secured by agricultural real estate, respectively.
(2)As of March 31, 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 March 31, 2026 and 2025 the allowance for losses for Infrastructure Finance loans includes $5.2 million and $0.0 million allowance for CDA.

The $4.3 million provision to the allowance during the three months ended March 31, 2026 is primarily attributed to new volume growth across all of our segments and portfolio credit migration.

The $0.8 million and $1.0 million net provision to the allowance for the Agricultural Finance mortgage loan and Infrastructure Finance loan portfolios during the three months ended March 31, 2025 was primarily attributable to net new business volume.

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

Table 4.4
As of March 31, 2026
Accruing
Current30-59 Days60-89 Days
90 Days and Greater
Total Past Due
Nonaccrual Loans(2)(3)
Total Loans
(in thousands)
Loans(1):
Agricultural Finance loans
Farm & Ranch$8,606,022 $19,446 $7,915 $15,278 $42,639 $220,111 $8,868,772 
Corporate AgFinance1,466,153 8,911 — — 8,911 27,707 1,502,771 
Total Agricultural Finance loans10,072,175 28,357 7,915 15,278 51,550 247,818 10,371,543 
Infrastructure Finance loans7,220,628 — — — — 13,387 7,234,015 
Total $17,292,803 $28,357 $7,915 $15,278 $51,550 $261,205 $17,605,558 
(1)Current loan amounts are presented based on contractual unpaid principal balance, while past due loan amounts are presented based on the recorded investment of the loan.
(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 $58.6 million of nonaccrual loans for which there was no associated allowance. During the three months ended March 31, 2026, Farmer Mac received $3.6 million in interest on nonaccrual loans.
As of December 31, 2025
Accruing
Current30-59 Days60-89 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 AgFinance1,415,507 — — — — 45,184 1,460,691 
Total Agricultural Finance loans9,686,683 21,209 8,595 4,290 34,094 224,662 9,945,439 
Infrastructure Finance loans6,747,694 — — — — 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 the recorded investment of the loan.
(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 March 31, 2026 and December 31, 2025, by year of origination:

Table 4.5
As of March 31, 2026
Year of Origination:
20262025202420232022PriorRevolving Loans - Amortized Cost BasisTotal
(in thousands)
Agricultural Finance - Farm & Ranch loans(1):
Internally Assigned Risk Rating:
Acceptable$614,883 $1,425,067 $880,088 $428,061 $882,480 $3,260,764 $410,705 $7,902,048 
Special mention(2)
46,642 259,679 74,417 17,887 31,090 73,861 13,715 517,291 
Substandard(3)
756 36,245 66,566 50,700 76,254 185,449 33,463 449,433 
Total$662,281 $1,720,991 $1,021,071 $496,648 $989,824 $3,520,074 $457,883 $8,868,772 
For the Three Months Ended March 31, 2026:
Current period charge-offs$— $— $— $— $— $— $— $— 
(1)Amounts represent unpaid principal balance of risk-rated loans, which is the basis Farmer Mac uses to analyze its portfolio, and recorded investment of past due loans.
(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 March 31, 2026
Year of Origination:
20262025202420232022PriorRevolving Loans - Amortized Cost BasisTotal
(in thousands)
Agricultural Finance - Corporate AgFinance(1):
Internally Assigned Risk Rating:
Acceptable$61,448 $338,161 $167,699 $93,446 $57,801 $371,871 $248,132 $1,338,558 
Special mention(2)
— — 16,158 7,272 — 26,373 30,151 79,954 
Substandard(3)
— — — 28,797 — 43,045 12,417 84,259 
Total$61,448 $338,161 $183,857 $129,515 $57,801 $441,289 $290,700 $1,502,771 
For the Three Months Ended March 31, 2026:
Current period charge-offs$— $— $— $— $— $1,828 $347 $2,175 
(1)Amounts represent unpaid principal balance of risk-rated loans, which is the basis Farmer Mac uses to analyze its portfolio, and recorded investment of past due loans.
(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 March 31, 2026
Year of Origination:
20262025202420232022PriorRevolving Loans - Amortized Cost BasisTotal
(in thousands)
Infrastructure Finance loans(1):
Internally Assigned Risk Rating:
Acceptable$397,335 $1,815,223 $1,235,560 $569,018 $443,555 $1,812,200 $831,547 $7,104,438 
Special mention(2)
— — — 18,863 53,433 647 — 72,943 
Substandard(3)
— — — 27,867 28,767 — — 56,634 
Total $397,335 $1,815,223 $1,235,560 $615,748 $525,755 $1,812,847 $831,547 $7,234,015 
For the Three Months Ended March 31, 2026:
Current period charge-offs$— $— $— $— $— $— $— $— 
(1)Amounts represent unpaid principal balance of risk-rated loans, which is the basis Farmer Mac uses to analyze its portfolio, and recorded investment of past due loans.
(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:
20252024202320222021PriorRevolving Loans - Amortized Cost BasisTotal
(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 $8,484,748 
For the Three Months Ended March 31, 2025:
Current period charge-offs$— $— $— $— $— $— $— $— 
(1)Amounts represent unpaid principal balance of risk-rated loans, which is the basis Farmer Mac uses to analyze its portfolio, and recorded investment of past due loans.
(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:
20252024202320222021PriorRevolving Loans - Amortized Cost BasisTotal
(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 $1,460,691 
For the Three Months Ended March 31, 2025:
Current period charge-offs$— $— $— $— $— $— $— $— 
(1)Amounts represent unpaid principal balance of risk-rated loans, which is the basis Farmer Mac uses to analyze its portfolio, and recorded investment of past due loans.
(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:
20252024202320222021PriorRevolving Loans - Amortized Cost BasisTotal
(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 $6,761,081 
For the Three Months Ended March 31, 2025:
Current period charge-offs$— $— $— $— $— $— $— $— 
(1)Amounts represent unpaid principal balance of risk-rated loans, which is the basis Farmer Mac uses to analyze its portfolio, and recorded investment of past due loans.
(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 a part of our loss mitigation activities, Farmer Mac may agree to the modify the contractual terms of loans to borrowers experiencing financial difficulty. These modifications generally include payment deferrals, capitalization of interest, and extensions of maturities.

During the three months ended March 31, 2026 and 2025, within Agricultural Finance - Farm & Ranch loans, Farmer Mac modified loans to borrowers experiencing financial difficulty with aggregate unpaid principal balances of $18.1 million and $6.7 million, respectively. These amounts represented approximately 0.20% and 0.09% of the total Farm & Ranch loan portfolio for each respective year.

There were no modifications to borrowers experiencing financial difficulty within the Agricultural Finance - Corporate AgFinance loans portfolio during the three months ended March 31, 2026 and 2025.

During the three months ended March 31, 2026, within Infrastructure Finance loans, Farmer Mac modified loans to borrowers experiencing financial difficulty with aggregate unpaid principal balances of $13.2 million, which represented approximately 0.18% of the Infrastructure Finance loans portfolio. There were no modifications to borrowers experiencing financial difficulty within the Infrastructure Finance loans portfolio during the three months ended March 31, 2025.