FAIR VALUE DISCLOSURES (Tables)

3 Months Ended

Mar. 31, 2026

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 1		Level 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 derivatives	304		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 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.

Schedule of Unobservable Input Reconciliation

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 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	$	—	$	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 Assets	4,897		—		(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 Balance		Purchases		Settlements		Allowance 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
AgVantage	5,505,531		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 Assets	5,382		—		(86)		—		1		—		5,297
Total Assets at fair value	$	5,539,404	$	300,000	$	(276,114)	$	50	$	82,067	$	2,627	$	5,648,034

Schedule of Fair Value Inputs, Assets and Liabilities, Quantitative Information

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 Instruments

Fair Value

Valuation Technique

Unobservable Input

Range (Weighted-Average)

(in thousands)

Assets:

Investment securities:

ABS

44,586

Discounted cash flow

Discount rate

7.6% - 7.6% (7.6%)

AgVantage

6,828,759

Discounted cash flow

Discount rate

4.5% - 7.8% (4.7%)

Interest-Only Farmer Mac Guaranteed Securities

8,153

Discounted cash flow

Discount rate

7.4%

CPR

Other Assets

4,867

Discounted cash flow

Discount rate

7.4%

CPR

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

Other Assets

4,897

Discounted cash flow

Discount rate

7.8%

CPR

Schedule of Fair Value, by Balance Sheet Grouping

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 receivable	56,941		—		—		62,487		62,487
Financial liabilities:
Notes payable	32,236,308		—		—		31,829,907		31,829,907
Debt securities of consolidated trusts held by third parties	2,275,001		—		—		2,323,479		2,323,479
Financial derivatives	46,490		93		46,397		—		46,490
Guarantee and commitment obligations	54,201		—		—		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 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

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

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