The following table displays, by debt product type, long-term debt outstanding as of August 31, 2026 and May 31, 2026. Long-term debt outstanding totaled $28,461 million and $28,346 million as of August 31, 2026 and May 31, 2026, respectively, and accounted for 80% and 79% of total debt outstanding as of each respective date.


(Dollars in thousands)	August 31, 2026		May 31, 2026
Secured long-term debt:
Collateral trust bonds(1)	$	6,666,283	$	6,670,191
Unamortized premium (discount), net	(136,326)		(140,322)
Debt issuance costs	(26,427)		(27,466)
Total collateral trust bonds	6,503,530		6,502,403
Guaranteed Underwriter Program notes payable	5,284,047		5,338,722
Farmer Mac notes payable	3,866,451		3,911,993



Total secured notes payable	9,150,498		9,250,715
Total secured long-term debt	15,654,028		15,753,118
Unsecured long-term debt:
Medium-term notes sold through dealers(2)	12,422,738		12,242,476
Medium-term notes sold to members	411,863		376,726
Medium-term notes sold through dealers and to members	12,834,601		12,619,202
Unamortized premium (discount), net	1		551
Debt issuance costs	(27,192)		(26,937)
Total unsecured long-term debt	12,807,410		12,592,816





Total long-term debt	$	28,461,438	$	28,345,934

(1)Collateral trust bonds represent secured obligations sold to investors in the capital markets, including those issued through both public offerings and private placement transactions.

Long-term secured debt of $15,654 million and $15,753 million as of August 31, 2026 and May 31, 2026, respectively, represented 55% and 56% of total long-term debt outstanding as of each respective date. We were in compliance with all covenants and conditions under our secured debt indentures as of August 31, 2026 and May 31, 2026. We are required to pledge eligible mortgage notes in an amount at least equal to the outstanding balance of our secured debt. See “Note 4—Loans” in this Report for information on pledged collateral under our secured debt agreements.

Collateral trust bonds represent secured obligations sold to investors in the capital markets. Collateral trust bonds are secured by the pledge of mortgage notes or eligible securities in an amount at least equal to the principal balance of the bonds outstanding. We repaid $4 million in principal amount of collateral trust bonds that matured during Q1 FY2027.

We repaid $55 million of notes payable outstanding under the USDA Guaranteed Underwriter Program (the “Guaranteed Underwriter Program”) during Q1 FY2027. We had up to $1,800 million funding available to us under the Guaranteed Underwriter Program from the U.S. Treasury Department’s Federal Financing Bank (“FFB”) as of August 31, 2026.

On September 8, 2026, we executed a commitment letter for the guarantee by RUS of an additional $455 million loan facility from the FFB under the Guaranteed Underwriter Program. On September 21, 2026, we advanced $300 million under an existing facility within the Guaranteed Underwriter Program.

The notes outstanding under the Guaranteed Underwriter Program contain a provision that if during any portion of the fiscal year, our senior secured credit ratings do not have at least two of the following ratings: (i) A3 or higher from Moody’s Investors Service (“Moody’s”), (ii) A- or higher from S&P Global Inc. (“S&P”), (iii) A- or higher from Fitch Ratings (“Fitch”) or (iv) an equivalent rating from a successor rating agency to any of the above rating agencies, we may not make cash patronage capital distributions in excess of 5% of total patronage capital. We are required to pledge eligible distribution system or power supply system loans as collateral in an amount at least equal to the total principal amount of notes outstanding under the Guaranteed Underwriter Program.

We have a revolving note purchase agreement with Farmer Mac under which we can borrow up to $6,500 million from Farmer Mac at any time, subject to market conditions, through January 14, 2030, after which the agreement allows for successive one-year renewals of the draw period upon sixty days’ notice by CFC, subject to approval by Farmer Mac and Farmer Mac Mortgage Securities Corporation. Pursuant to this revolving note purchase agreement, we can borrow, repay and re-borrow funds at any time through maturity, as market conditions permit, provided the outstanding principal does not exceed the total available under the agreement. Each borrowing is documented with a pricing agreement setting forth the interest rate, maturity date and other terms. We may select a fixed or variable rate for each advance.

During Q1 FY2027, we repaid $46 million in long-term notes under the Farmer Mac revolving note purchase agreement. As of August 31, 2026, $3,866 million was outstanding with $2,634 million available for borrowing.

We are required to pledge eligible electric distribution system or electric power supply system loans as collateral in an amount at least equal to the total principal amount of notes outstanding under this agreement.

Long-term unsecured debt of $12,807 million and $12,593 million as of August 31, 2026 and May 31, 2026, respectively, represented 45% and 44% of total long-term debt outstanding as of each respective date.

Medium-term notes represent unsecured obligations that may be issued through dealers in the capital markets or directly to our members. During Q1 FY2027, we issued dealer medium-term notes to institutional investors totaling $800 million, of which $500 million was at a fixed interest rate of 5.00% with a term of five years and $300 million was at a floating interest rate with a term of 18 months. We also issued an aggregate principal amount of $1 million dealer medium-term notes to retail investors during Q1 FY2027. We repaid $621 million in principal amount of dealer medium-term notes during Q1 FY2027.

On September 8, 2026, notice was provided to investors that we would redeem all $400 million in principal amount of our 5.60% medium-term notes due 2026 (the “2026 Notes”) on October 13, 2026. The 2026 Notes were redeemed at par, plus

accrued interest. We recognized an immaterial amount of losses on early extinguishment of debt related to unamortized discount and debt issuance costs upon redemption of the 2026 Notes.