v3.26.1
FAIR VALUE DISCLOSURES
 3 Months Ended
Mar. 31, 2026
Fair Value Disclosures [Abstract]  
FAIR VALUE DISCLOSURES FAIR VALUE DISCLOSURES
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 March 31, 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 March 31, 2026
 Level 1Level 2
Level 3(1)
Total
 (in thousands)
Recurring: 
Assets:    
Investment Securities:    
AFS:
    
Government/GSE guaranteed MBS
$— $5,476,834 $— $5,476,834 
U.S. Treasuries
1,612,790 — — 1,612,790 
ABS
— — 44,586 44,586 
AgVantage— — 6,828,759 6,828,759 
Interest-Only Farmer Mac Guaranteed Securities
— — 8,153 8,153 
Total AFS Investment Securities
1,612,790 5,476,834 6,881,498 13,971,122 
Financial derivatives304 15,177 — 15,481 
Other Assets(2)
— — 4,867 4,867 
Total Assets at fair value$1,613,094 $5,492,011 $6,886,365 $13,991,470 
Liabilities:    
Financial derivatives$93 $46,397 $— $46,490 
Total Liabilities at fair value$93 $46,397 $— $46,490 
(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, 2025
 Level 1Level 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 derivatives154 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 March 31, 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 months ended March 31, 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 months ended March 31, 2026 and 2025.

Table 8.2
Level 3 Assets and Liabilities Measured at Fair Value For the Three Months Ended March 31, 2026
Beginning BalancePurchasesSettlementsAllowance 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
$— $45,000 $— $— $(18)$(396)$44,586 
AgVantage
6,730,917 350,000 (213,096)(8)(21,495)(17,559)6,828,759 
Interest-Only Farmer Mac Guaranteed Securities
8,203 — (160)— — 110 8,153 
Total AFS
6,739,120 395,000 (213,256)(8)(21,513)(17,845)6,881,498 
Other Assets4,897 — (83)— 53 — 4,867 
Total Assets at fair value$6,744,017 $395,000 $(213,339)$(8)$(21,460)$(17,845)$6,886,365 

Level 3 Assets and Liabilities Measured at Fair Value For the Three Months Ended March 31, 2025
Beginning BalancePurchasesSettlementsAllowance for Losses
Realized and
unrealized gains 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 $— $— $— $— $(123)$19,353 
AgVantage5,505,531 300,000 (275,854)50 82,066 2,719 5,614,512 
Interest-Only Farmer Mac Guaranteed Securities
9,015 — (174)— — 31 8,872 
Total AFS
5,534,022 300,000 (276,028)50 82,066 2,627 5,642,737 
Other Assets5,382 — (86)— 1 — 5,297 
Total Assets at fair value$5,539,404 $300,000 $(276,114)$50 $82,067 $2,627 $5,648,034 
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 March 31, 2026 and December 31, 2025:

Table 8.3
As of March 31, 2026
Financial InstrumentsFair ValueValuation TechniqueUnobservable InputRange (Weighted-Average)
(in thousands)
Assets:
Investment securities:
ABS
$44,586 Discounted cash flowDiscount rate
7.6% - 7.6% (7.6%)
AgVantage$6,828,759 Discounted cash flowDiscount rate
4.5% - 7.8% (4.7%)
Interest-Only Farmer Mac Guaranteed Securities$8,153 Discounted cash flowDiscount rate
7.4%
CPR
3%
Other Assets$4,867 Discounted cash flowDiscount rate
7.4%
CPR
3%

As of December 31, 2025
Financial InstrumentsFair ValueValuation TechniqueUnobservable InputRange (Weighted-Average)
(in thousands)
Assets:
Investment securities:
AgVantage$6,730,917 Discounted cash flowDiscount rate
4.3% - 4.9% (4.5%)
Interest-Only Farmer Mac Guaranteed Securities$8,203 Discounted cash flowDiscount rate
7.8%
CPR
3%
Other Assets$4,897 Discounted cash flowDiscount rate
7.8%
CPR
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 March 31, 2026 and December 31, 2025:

Table 8.4
As of March 31, 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$773,935 $773,935 $— $— $773,935 
Investment securities
18,218,995 1,612,790 5,476,834 10,954,657 18,044,281 
Loans
17,211,635 — — 17,229,987 17,229,987 
Financial derivatives
15,481 304 15,177 — 15,481 
Guarantee and commitment fees receivable56,941 — — 62,487 62,487 
Financial liabilities:
Notes payable32,236,308 — — 31,829,907 31,829,907 
Debt securities of consolidated trusts held by third parties2,275,001 — — 2,323,479 2,323,479 
Financial derivatives46,490 93 46,397 — 46,490 
Guarantee and commitment obligations54,201 — — 59,748 59,748 

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 receivable57,214 — — 63,677 63,677 
Financial liabilities:
Notes payable30,822,570 — — 30,489,417 30,489,417 
Debt securities of consolidated trusts held by third parties2,365,435 — — 2,420,149 2,420,149 
Financial derivatives21,618 15 21,603 — 21,618 
Guarantee and commitment obligations54,770 — — 61,234 61,234