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Item 7. Management’s Discussion and Analysis

Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations 
 
 The objective of this section of the report is to provide a discussion and analysis, from management’s perspective, of the material information necessary to assess Farmer Mac's financial condition and results of operations for the year ended December 31, 2024. Financial information included in this report is consolidated to include the accounts of Farmer Mac and its two subsidiaries – Farmer Mac Mortgage 
 Securities Corporation and Farmer Mac II LLC. This discussion and analysis of financial condition and results of operations should be read together with Farmer Mac's consolidated financial statements and the related notes to the consolidated financial statements for the fiscal year ended December 31, 2024, 2023, and 2022. 
 
 Overview 
 
 Farmer Mac is driven by its mission to increase the accessibility of financing to provide vital liquidity for American agriculture and infrastructure. Our secondary market provides liquidity to our nation's agricultural and infrastructure businesses, supporting a vibrant and strong rural America. We offer a wide range of solutions to help meet financial institutions’ growth, liquidity, risk management, and capital relief needs across diverse markets, including agriculture, agribusiness, broadband infrastructure, power and utilities, and renewable energy. We are uniquely positioned to facilitate competitive access to financing that fuels growth, innovation, and prosperity in America's rural and agricultural communities. Farmer Mac also serves as a critical investment tool for a number of entities – such as states, counties, municipalities, pension funds, banks, public trust funds, and credit unions – by offering investment opportunities that may diversify their investment portfolios and provide possibilities to earn a competitive return on their investment dollars. 
 
 During 2024, Farmer Mac: 
 
 • provided $7.0 billion in liquidity and lending capacity to lenders serving rural America; 
 • issued over $0.6 billion in FARM securitization certificates; 
 • maintained strong liquidity in our investment portfolio well above regulatory requirements; 
 • maintained our strong capital position, well above regulatory requirements, and uninterrupted access to the debt capital markets; and 
 • redeemed all $75.0 million of our Series C Preferred Stock. 
 
 The discussion below of Farmer Mac's financial information includes "non-GAAP measures," which are measures of financial performance not presented in accordance with generally accepted accounting principles in the United States ("GAAP"). For more information about the non-GAAP measures Farmer Mac uses, see "Management's Discussion and Analysis of Financial Condition and Results of Operations—Use of Non-GAAP Measures." 
 
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 Net Income and Core Earnings 
 
 The following table shows our net income attributable to common stockholders and core earnings for the periods presented. Core earnings and core earnings per share are non-GAAP measures that differ from net income attributable to common stockholders and earnings per common share, respectively, by excluding the effects of fair value fluctuations and specified infrequent or unusual transactions. 
 
 Table 1 
 For the Years Ended December 31, 
 2024 2023 2022 
 (in thousands) 
 Net income attributable to common stockholders $ 180,428 $ 172,838 $ 150,979 
 Core earnings 171,630 171,156 124,314 

 The $7.6 million year-over-year increase in net income attributable to common stockholders was primarily attributable to a $20.8 million after-tax increase in net interest income, a $2.6 million federal income tax benefit from the purchase of renewable energy investment tax credits, and a $2.0 million decrease in preferred stock dividends. These factors were partially offset by an $8.2 million after-tax increase in the provision for credit losses, a $6.6 million after-tax increase in operating expenses, and the $1.6 million loss on retirement of the Series C Preferred Stock related to deferred issuance costs. 
 
 The $21.9 million year-over-year increase in net income attributable to common stockholders for 2023 compared to 2022 was due to a $44.7 million after-tax increase in net interest income and a $2.9 million after-tax increase in guarantee fees. These factors were partially offset by a $15.6 million after-tax decrease in the fair value of undesignated financial derivatives and a $12.1 million after-tax increase in operating expenses. 
 
 The $0.5 million year-over-year increase in core earnings was primarily attributable to a $9.9 million after-tax increase in net effective spread, a $2.6 million federal income tax benefit from the purchase of renewable energy investment tax credits, a $2.0 million decrease in preferred stock dividends, and a $1.1 million after-tax increase in guarantee and commitment fees. These factors were partially offset by an $8.2 million after-tax increase in the provision for credit losses and a $6.6 million after-tax increase in operating expenses. 
 
 The $46.8 million year-over-year increase in core earnings for 2023 compared to 2022 was due to a $56.4 million after-tax increase in net effective spread, partially offset by a $12.1 million after-tax increase in operating expenses. 
 
 For more information about net income attributable to common stockholders, the composition of core earnings, and a reconciliation of net income attributable to common stockholders to core earnings, see "Management's Discussion and Analysis of Financial Condition and Results of Operations—Results of Operations." For more information about the non-GAAP measures Farmer Mac uses, see "Management's Discussion and Analysis of Financial Condition and Results of Operations—Use of Non-GAAP Measures." 
 
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 Net Interest Income and Net Effective Spread 
 
 The following table shows our net interest income and net effective spread in both dollars and percentage yield or spread for the periods presented. Farmer Mac uses net effective spread, a non-GAAP measure, as an alternative to net interest income because management believes it is a useful metric that reflects the economics of the net spread between all the assets owned by Farmer Mac and all related funding, including any associated derivatives, some of which may not be included in net interest income. 
 
 Table 2 
 For the Years Ended December 31, 
 2024 2023 2022 
 (in thousands) 
 Net interest income $ 353,867 $ 327,547 $ 270,940 
 Net interest yield % 1.16 % 1.15 % 1.04 % 
 Net effective spread $ 339,564 $ 326,980 $ 255,529 
 Net effective spread % 1.15 % 1.18 % 1.02 % 

 The $26.3 million year-over-year increase in net interest income was primarily due to an increase of $20.2 million from the shift in the composition of new business volume toward higher yielding loans and a $16.9 million increase in the fair value of derivatives designated in fair value hedge accounting relationships (designated financial derivatives). That increased yield was partially offset by a $6.6 million decrease in cash-basis interest income and a $4.6 million increase in funding costs. In percentage terms, the year-over-year increase was 0.01%. 
 
 The $56.6 million year-over-year increase in net interest income for 2023 compared to 2022 was primarily due to a $48.9 million decrease in funding costs and a $19.9 million increase related to net new business volume. The decrease in funding costs was primarily due to our disciplined funding strategies and higher nominal interest rates that have led to an upward repricing of our excess long-term capital that we raised when interest rates were at historical lows and is held in our investment portfolio. The factors that contributed to the increase in net interest income were partially offset by an $11.2 million decrease in the fair value of derivatives designated in fair value hedge accounting relationships (designated financial derivatives). In percentage terms, the 0.11% increase was primarily attributable to a decrease of 0.16% in funding costs and a decrease of 0.04% in net fair value changes from designated financial derivatives. 
 
 The $12.6 million year-over-year increase in net effective spread was primarily due to a $20.2 million increase from a shift in the composition of new business volume towards higher-yielding loans. This factor was partially offset by a $6.6 million decrease in cash-basis interest income and a $1.3 million increase in funding costs. In percentage terms, the year-over-year decrease of 0.03% was primarily attributable to an increase of 0.04% related to the increases in funding costs and a decrease of 0.02% in cash-basis interest income, which were partially offset by an increase of 0.03% on the shift in the composition of new business volume towards higher-yielding loans. 
 
 The $71.5 million year-over-year increase in net effective spread for 2023 compared to 2022 was primarily due to a $54.6 million decrease in funding costs, due to the same factors mentioned above that decreased our funding costs, and a $20.6 million increase related to net new business volume. In percentage terms, the year-over-year increase of 0.16% was primarily attributable to a decrease in funding costs. 
 
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 For more information about Farmer Mac's use of net effective spread as a financial measure, see "Management's Discussion and Analysis of Financial Condition and Results of Operations—Use of Non-GAAP Measures." For a reconciliation of net interest income to net effective spread, see Table 10 in "Management's Discussion and Analysis of Financial Condition and Results of Operations—Results of Operations—Net Interest Income." 
 
 Business Volume 
 
 Our outstanding business volume was $29.5 billion as of December 31, 2024, a net increase of $1.1 billion from December 31, 2023 after taking into account all new business, maturities, sales, and paydowns on existing assets. The net increase was primarily attributable to a net increase of $1.1 billion in the Infrastructure Finance line of business. 
 
 For more information about Farmer Mac's business volume, see "Management's Discussion and Analysis of Financial Condition and Results of Operations—Results of Operations—Business Volume." 
 
 Capital 
 
 Table 3 
 As of 
 December 31, 2024 December 31, 2023 
 (in thousands) 
 Core capital $ 1,501,173 $ 1,452,008 
 Capital in excess of minimum capital level required 583,527 589,399 

 The decrease in capital in excess of the minimum capital level required was primarily due to the redemption of the Series C Preferred Stock, partially offset by an increase in retained earnings. 
 
 Credit Quality 
 
 The following table presents Agricultural Finance on- and off-balance sheet substandard assets, in dollars and as a percentage of the respective portfolio as of December 31, 2024 and 2023: 
 
 Table 4 
 On-Balance Sheet Off-Balance Sheet 
 Substandard Assets % of Portfolio Substandard Assets % of Portfolio 
 (dollars in thousands) 
 December 31, 2024 $ 367,012 4.2 % $ 31,240 0.9 % 
 
 December 31, 2023 152,865 2.0 % 33,086 1.0 % 
 
 Increase/(decrease) from prior year-ending 214,147 2.2 % (1,846) (0.1) % 

 The increase of $214.1 million in on-balance sheet substandard assets during 2024 was primarily driven by credit downgrades in permanent plantings, crops, livestock, part-time farms, and agricultural storage and processing. 
 There were two substandard assets with a cumulative outstanding balance of $42.5 million in the Infrastructure Finance portfolio as of December 31, 2024. There was one substandard asset with an outstanding balance of $29.4 million in the Infrastructure Finance portfolio as of December 31, 2023. 
 
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 For an analysis of current loan-to-value ratios across substandard and other internally assigned risk ratings, see Table 25 in "Management's Discussion and Analysis of Financial Condition and Results of Operations—Risk Management—Credit Risk—Loans and Guarantees." 
 The following table presents 90-day delinquencies for the on- and off-balance sheet Agricultural Finance portfolios in dollars and as a percentage of the respective balance sheet category as of December 31, 2024 and 2023: 
 
 Table 5 
 On-Balance Sheet Off-Balance Sheet 
 90-Day
Delinquencies % of Portfolio 90-Day
Delinquencies % of Portfolio 
 (dollars in thousands) 
 December 31, 2024 $ 101,340 1.15 % $ 7,604 0.22 % 
 
 December 31, 2023 32,893 0.42 % 1,784 0.05 % 
 
 Increase/(decrease) from prior year-ending 68,447 0.73 % 5,820 0.17 % 

 On-balance sheet Agricultural Finance assets 90 or more days delinquent increased in permanent plantings, crops, livestock, and part-time farms. Off-balance sheet Agricultural Finance assets 90 days or more delinquent increased in permanent plantings and crops. The top ten borrower exposures over 90 days delinquent in either the on- or off-balance sheet Agricultural Finance portfolio represented over half of the aggregate 90-day delinquencies as of December 31, 2024. 
 
 As of both December 31, 2024 and 2023, there were no 90-day delinquencies in Farmer Mac's portfolio of Infrastructure Finance loan purchases and loans underlying LTSPCs. 
 
 For more information about Farmer Mac's credit metrics, including 90-day delinquencies, the total allowance for losses, and substandard assets, see "Management's Discussion and Analysis of Financial Condition and Results of Operations—Risk Management—Credit Risk—Loans and Guarantees." 
 
 Critical Accounting Estimates 
 
 The preparation of Farmer Mac's consolidated financial statements in conformity with GAAP requires the use of estimates and assumptions that affect the amounts reported in the consolidated financial statements and related notes for the periods presented. Farmer Mac considers an accounting estimate made in accordance with GAAP to be critical when it involves a significant level of estimation uncertainty and it has had or is likely to have a material impact on our financial condition or results of operations. 
 
 The accounting estimate that Farmer Mac considers to be critical in the preparation of its consolidated financial statements is the estimation of the fair value of AgVantage Securities (AgVantage). Farmer Mac considers the fair value of AgVantage Securities that are classified as held-to-maturity (AgVantage HTM) to be a critical estimate because of their impact on the company's fair value disclosures in Note 5 to the consolidated financial statements – Farmer Mac Guaranteed Securities and USDA Securities and Note 13 to the consolidated financial statements – Fair Value Disclosures. Farmer Mac considers the fair value of AgVantage Securities that are classified as available-for-sale (AgVantage AFS) to be a critical estimate due to the significance of the periodic measurement of mark-to-market adjustments relative to the company's total assets, comprehensive income, and equity. Farmer Mac also considers the fair value of AgVantage to be a critical accounting estimate because Farmer Mac applies a discount rate in calculating 
 
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 the net present value of future expected cash flows that is both significant to the estimate of their fair value and unobservable in the market. Farmer Mac relies upon this significant unobservable input to estimate the fair value of AgVantage because there are no observable transactions in these securities in the market. 
 
 Farmer Mac's AgVantage HTM amortized cost was $2.7 billion and $4.2 billion as of December 31, 2024 and 2023, respectively. The fair value of AgVantage HTM had net unrealized losses in the amount of $15.6 million and $34.8 million as of December 31, 2024 and 2023, respectively. See Note 5 to the consolidated financial statements – Farmer Mac Guaranteed Securities and USDA Securities for more information. 
 
 Farmer Mac's AgVantage AFS fair value was $5.5 billion as of both December 31, 2024 and 2023. The fair value of AgVantage AFS had accumulated net unrealized losses in the amount of $321.2 million and $293.0 million as of December 31, 2024 and 2023, respectively. See Note 5 to the consolidated financial statements – Farmer Mac Guaranteed Securities and USDA Securities for more information. 
 
 Farmer Mac applies discount rates that are commensurate with the risks involved to estimate the fair value measurement of both AgVantage AFS and HTM. As of December 31, 2024, Farmer Mac applied discount rates that ranged from 5.0% to 5.5% (with a weighted average of 5.1%) for AgVantage AFS and 5.0% to 6.8% (with a weighted average of 5.3%) for AgVantage HTM. As of December 31, 2023, Farmer Mac applied discount rates that ranged from 4.7% to 5.4% (with a weighted average of 5.0%) for AgVantage AFS and 4.8% to 8.6% (with a weighted average of 5.5%) for AgVantage HTM. 
 
 Use of different discount rates than those selected by Farmer Mac may result in materially different estimates of fair value for AgVantage AFS and HTM. Farmer Mac selects the discount rate for each AgVantage AFS and HTM security by analyzing credit default swap levels and the long-term credit outlook of Farmer Mac's major counterparties and estimating an appropriate credit spread relative to U.S. Treasury yields. The periodic measurement of fair value and underlying discount rate methodology is subject to Farmer Mac’s internal controls and review by management. As of December 31, 2024, a 0.50% increase in the discount rates used to determine the fair value of AgVantage AFS and HTM would decrease the overall GAAP carrying value by approximately 1.8% and 1.3%, respectively. See Note 13 to the consolidated financial statements – Fair Value Disclosures for more information. 
 
 For a description of Farmer Mac’s accounting policy for fair value measurements, see Note 2(n) to the consolidated financial statements – Significant Accounting Policies, Fair Value Measurements. 
 
 Use of Non-GAAP Measures 
 
 In the accompanying analysis of its financial information, Farmer Mac uses "non-GAAP measures," which are measures of financial performance that are not presented in accordance with GAAP. Specifically, Farmer Mac uses the following non-GAAP measures: "core earnings," "core earnings per share," and "net effective spread." Farmer Mac uses these non-GAAP measures to measure corporate economic performance and develop financial plans because, in management's view, they are useful alternative measures in understanding Farmer Mac's economic performance, transaction economics, and business trends. 
 
 The non-GAAP financial measures that Farmer Mac uses may not be comparable to similarly labeled non-GAAP financial measures disclosed by other companies. Farmer Mac's disclosure of these non-GAAP measures is intended to be supplemental in nature and is not meant to be considered in isolation from, as a 
 
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 substitute for, or as more important than, the related financial information prepared in accordance with GAAP. 
 
 Core Earnings and Core Earnings Per Share 
 
 The main difference between core earnings and core earnings per share (non-GAAP measures) and net income attributable to common stockholders and earnings per common share (GAAP measures) is that those non-GAAP measures exclude the effects of fair value fluctuations. These fluctuations are not expected to have a cumulative net impact on Farmer Mac's financial condition or results of operations reported in accordance with GAAP if the related financial instruments are held to maturity, as is expected. Another difference is that these two non-GAAP measures exclude specified infrequent or unusual transactions that we believe are not indicative of future operating results and that may not reflect the trends and economic financial performance of Farmer Mac's core business. For example, in third quarter 2024, we excluded the loss on the retirement of the Series C Preferred Stock from core earnings and core earnings per share, which is consistent with Farmer Mac's historical treatment of any losses on the retirement of preferred stock. For a reconciliation of Farmer Mac's net income attributable to common stockholders to core earnings and of earnings per common share to core earnings per share, see "Management's Discussion and Analysis of Financial Condition and Results of Operations—Results of Operations." 
 
 Net Effective Spread 
 
 Farmer Mac uses net effective spread to measure the net spread Farmer Mac earns between its interest-earning assets and the related net funding costs of those assets. As further explained below, net effective spread differs from net interest income and net interest yield by excluding certain items from net interest income and net interest yield and including certain other items that net interest income and net interest yield do not contain. 
 
 Farmer Mac excludes from net effective spread the interest income and interest expense associated with the consolidated trusts and the average balance of the loans underlying these trusts to reflect management's view that the net interest income Farmer Mac earns on the related Farmer Mac Guaranteed Securities owned by third parties is effectively a guarantee fee. Accordingly, the excluded interest income and interest expense associated with consolidated trusts is reclassified to guarantee and commitment fees in determining Farmer Mac's core earnings. Farmer Mac also excludes from net effective spread the fair value changes of financial derivatives and the corresponding assets or liabilities designated in fair value hedge accounting relationships because they are not expected to have an economic effect on Farmer Mac's financial performance, as we expect to hold the financial derivatives and corresponding hedged items to maturity. 
 
 Net effective spread also differs from net interest income and net interest yield because it includes the accrual of income and expense related to the contractual amounts due on financial derivatives that are not designated in hedge accounting relationships ("undesignated financial derivatives"). Farmer Mac uses interest rate swaps to manage its interest rate risk exposure by synthetically modifying the interest rate reset or maturity characteristics of certain assets and liabilities. The accrual of the contractual amounts due on interest rate swaps designated in hedge accounting relationships is included as an adjustment to the yield or cost of the hedged item and is included in net interest income. For undesignated financial derivatives, Farmer Mac records the income or expense related to the accrual of the contractual amounts due in "Gains on financial derivatives" on the consolidated statements of operations. However, the accrual 
 
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 of the contractual amounts due for undesignated financial derivatives are included in Farmer Mac's calculation of net effective spread. 
 
 Net effective spread also differs from net interest income and net interest yield because it includes the net effects of terminations or net settlements on financial derivatives, which consist of: (1) the net effects of cash settlements on agency forward contracts on the debt of other GSEs and U.S. Treasury security futures that we use as short-term economic hedges on the issuance of debt; and (2) the net effects of initial cash payments that Farmer Mac receives upon the inception of certain swaps. The inclusion of these items in net effective spread is intended to reflect our view of the complete net spread between an asset and all of its related funding, including any associated derivatives, whether or not they are designated in a hedge accounting relationship. 
 
 For a reconciliation of net interest income and net interest yield to net effective spread, see Table 10 in "Management's Discussion and Analysis of Financial Condition and Results of Operations—Results of Operations—Net Interest Income." 
 
 Results of Operations 
 
 Reconciliations of Farmer Mac's net income attributable to common stockholders to core earnings and core earnings per share are presented in the following tables along with information about the composition of core earnings: 
 
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 Table 6 
 
 Reconciliation of Net Income Attributable to Common Stockholders to Core Earnings 
 For the Years Ended December 31, 
 2024 2023 2022 
 (in thousands, except per share amounts) 
 Net income attributable to common stockholders $ 180,428 $ 172,838 $ 150,979 
 Less reconciling items: 
 Gains on undesignated financial derivatives due to fair value changes (see Table 13) 
 3,344 5,142 13,495 
 Gains/(losses) on hedging activities due to fair value changes 
 11,548 (5,394) 5,343 
 Unrealized (losses)/gains on trading securities 
 (85) 1,979 (917) 
 Net effects of amortization of premiums/discounts and deferred gains on assets consolidated at fair value 45 175 39 
 Net effects of terminations or net settlements on financial derivatives (1,666) 227 15,794 
 Issuance costs on the retirement of preferred stock (1,619) — — 
 Income tax effect related to reconciling items (2,769) (447) (7,089) 
 Sub-total 8,798 1,682 26,665 
 Core earnings $ 171,630 $ 171,156 $ 124,314 
 
 Composition of Core Earnings: 
 Revenues: 
 Net effective spread (1) 
 $ 339,564 $ 326,980 $ 255,529 
 Guarantee and commitment fees (2) 
 20,321 18,928 18,144 
 Gain on sale of investment securities (GAAP) 
 1,052 — — 
 Loss on sale of mortgage loan (GAAP) 
 (1,147) — — 
 Other (3) 
 2,200 3,299 1,684 
 Total revenues 361,990 349,207 275,357 
 
 Credit related expense (GAAP): 
 Provision for losses 
 11,490 1,136 806 
 REO operating expenses 196 — 819 
 Total credit related expense 11,686 1,136 1,625 
 
 Operating expenses (GAAP): 
 Compensation and employee benefits 63,975 58,914 48,766 
 General and administrative 38,236 34,963 29,772 
 Regulatory fees 3,175 3,222 3,269 
 Total operating expenses 105,386 97,099 81,807 
 
 Net earnings 244,918 250,972 191,925 
 Income tax expense (4) 
 48,142 52,651 40,446 
 Preferred stock dividends (GAAP) 25,146 27,165 27,165 
 Core earnings $ 171,630 $ 171,156 $ 124,314 
 
 Core earnings per share: 
 Basic $ 15.78 $ 15.80 $ 11.52 
 Diluted $ 15.64 $ 15.65 $ 11.42 
 Weighted-average shares: 
 Basic 10,874 10,829 10,791 
 Diluted 10,975 10,937 10,883 

 (1) Net effective spread is a non-GAAP measure. See "Management's Discussion and Analysis of Financial Condition and Results of Operations—Use of Non-GAAP Measures—Net Effective Spread" for an explanation of net effective spread. See Table 10 for a reconciliation of net interest income to net effective spread. 
 
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 (2) Includes interest income and interest expense related to consolidated trusts owned by third parties reclassified from net interest income to guarantee and commitment fees to reflect management's view that the net interest income Farmer Mac earns is effectively a guarantee fee on the consolidated Farmer Mac Guaranteed Securities. 
 (3) Reflects reconciling adjustments for the reclassification to exclude expenses related to interest rate swaps not designated as hedges and terminations or net settlements on financial derivatives, and reconciling adjustments to exclude fair value adjustments on financial derivatives and trading assets and the recognition of deferred gains over the estimated lives of certain Farmer Mac Guaranteed Securities and USDA Securities. 
 (4) Includes the tax impact of non-GAAP reconciling items between net income attributable to common stockholders and core earnings. 
 
 Table 7 
 Reconciliation of GAAP Basic Earnings Per Share to Core Earnings - Basic Earnings Per Share 
 For the Years Ended December 31, 
 2024 2023 2022 
 (in thousands, except per share amounts) 
 GAAP - Basic EPS $ 16.59 $ 15.97 $ 14.00 
 Less reconciling items: 
 Gains on undesignated financial derivatives due to fair value changes (see Table 13) 
 0.31 0.49 1.25 
 Gains/(losses) on hedging activities due to fair value changes 
 1.06 (0.50) 0.50 
 Unrealized (losses)/gains on trading securities 
 (0.01) 0.18 (0.08) 
 Net effects of amortization of premiums/discounts and deferred gains on assets consolidated at fair value — 0.02 — 
 Net effects of terminations or net settlements on financial derivatives (0.15) 0.02 1.47 
 Issuance costs on the retirement of preferred stock (0.15) — — 
 Income tax effect related to reconciling items (0.25) (0.04) (0.66) 
 Sub-total 0.81 0.17 2.48 
 Core Earnings - Basic EPS $ 15.78 $ 15.80 $ 11.52 
 
 Shares used in per share calculation (GAAP and Core Earnings) 10,874 10,829 10,791 

 Reconciliation of GAAP Diluted Earnings Per Share to Core Earnings - Diluted Earnings Per Share 
 For the Years Ended December 31, 
 2024 2023 2022 
 (in thousands, except per share amounts) 
 GAAP - Diluted EPS $ 16.44 $ 15.81 $ 13.87 
 Less reconciling items: 
 Gains on undesignated financial derivatives due to fair value changes (see Table 13) 
 0.30 0.47 1.24 
 Gains/(losses) on hedging activities due to fair value changes 
 1.05 (0.49) 0.49 
 Unrealized (losses)/gains on trading securities 
 (0.01) 0.18 (0.08) 
 Net effects of amortization of premiums/discounts and deferred gains on assets consolidated at fair value — 0.02 — 
 Net effects of terminations or net settlements on financial derivatives (0.14) 0.02 1.45 
 Issuance costs on the retirement of preferred stock (0.15) — — 
 Income tax effect related to reconciling items (0.25) (0.04) (0.65) 
 Sub-total 0.80 0.16 2.45 
 Core Earnings - Diluted EPS $ 15.64 $ 15.65 $ 11.42 
 
 Shares used in per share calculation (GAAP and Core Earnings) 10,975 10,937 10,883 

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 The non-GAAP reconciling items between net income attributable to common stockholders and core earnings are: 
 
 1. Gains on financial derivatives due to fair value changes are presented by two reconciling items in Table 6 above: (a) Gains on undesignated financial derivatives due to fair value changes; and (b) Gains/(losses) on hedging activities due to fair value changes. 
 
 2. Unrealized (losses)/gains on trading securities. The unrealized (losses)/gains on trading securities are reported on Farmer Mac's consolidated statements of operations, which represent changes during the period in fair values for trading assets remaining on Farmer Mac's balance sheet as of the end of the reporting period. 
 3. The net effects of amortization of premiums/discounts and deferred gains on assets consolidated at fair value. The amount of this non-GAAP reconciling item is the recorded amount of premium, discount, or deferred gain amortization during the reporting period on those assets for which the premium, discount, or deferred gain was based on the application of an accounting principle (e.g., consolidation of variable interest entities) rather than on a cash transaction (e.g., a purchase price premium or discount). 
 4. The net effects of terminations or net settlements on financial derivatives. These terminations or net settlements relate to: 
 • Forward contracts on the debt of other GSEs and futures contracts on U.S. Treasury securities. These contracts are used as a short-term economic hedge of the issuance of debt. For GAAP purposes, realized gains or losses on settlements of these contracts are reported in the consolidated statements of operations in the period in which they occur. For core earnings purposes, these realized gains or losses are deferred and amortized as net yield adjustments over the term of the related debt, which generally ranges from 3 to 15 years. 
 5. The recognition of deferred issuance costs on the retirement of the Series C Preferred Stock in July 2024 has been excluded from core earnings because they are not frequently occurring transactions, nor are they indicative of future operating results. This is consistent with Farmer Mac's previous treatment of deferred issuance costs associated with the retirement of preferred stock. 
 The following sections provide more detail about specific components of Farmer Mac's results of operations. 
 
 Net Interest Income . The following table provides information about interest-earning assets and funding for the years ended December 31, 2024, 2023, and 2022. The average balance of non-accruing loans is included in the average balance of loans, Farmer Mac Guaranteed Securities, and USDA Securities presented, though the related income is accounted for on a cash basis. Therefore, as the average balance of non-accruing loans and the income received increases or decreases, the net interest income and yield will fluctuate accordingly. The average balance of loans in consolidated trusts with beneficial interests owned by third parties (single-class) and for which Farmer Mac guarantees all classes of securities issued is disclosed in the net effect of consolidated trusts and is not included in the average balances of interest-earning assets and interest-bearing liabilities. The interest income and expense associated with these trusts are shown in the net effect of consolidated trusts. 
 
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 Table 8 
 
 For the Years Ended 
 December 31, 2024 December 31, 2023 December 31, 2022 
 Average
Balance Income/
Expense Average
Rate Average
Balance Income/
Expense Average
Rate Average
Balance Income/
Expense Average
Rate 
 (dollars in thousands) 
 Interest-earning assets: 
 Cash and investments $ 6,453,407 $ 345,501 5.35 % $ 5,894,515 $ 287,144 4.87 % $ 5,236,118 $ 82,659 1.58 % 
 Loans, Farmer Mac Guaranteed Securities and USDA Securities (1) 
 23,054,069 1,219,664 5.29 % 21,739,403 1,070,932 4.93 % 19,882,489 602,537 3.03 % 
 Total interest-earning assets 29,507,476 1,565,165 5.30 % 27,633,918 1,358,076 4.91 % 25,118,607 685,196 2.73 % 
 Funding: 
 Notes payable due within one year 3,100,823 159,792 5.15 % 3,274,799 150,666 4.60 % 2,876,452 48,481 1.69 % 
 Notes payable due after one year (2) 
 24,453,238 1,055,983 4.32 % 22,631,904 884,034 3.91 % 20,987,990 370,014 1.76 % 
 Total interest-bearing liabilities (3) 
 27,554,061 1,215,775 4.41 % 25,906,703 1,034,700 3.99 % 23,864,442 418,495 1.75 % 
 Net non-interest-bearing funding 1,953,415 — 1,727,215 — 1,254,165 — 
 Total funding 29,507,476 1,215,775 4.12 % 27,633,918 1,034,700 3.74 % 25,118,607 418,495 1.67 % 
 Net interest income/yield prior to consolidation of certain trusts 29,507,476 349,390 1.18 % 27,633,918 323,376 1.17 % 25,118,607 266,701 1.06 % 
 Net effect of consolidated trusts (4) 
 882,708 4,477 0.51 % 873,181 4,171 0.48 % 850,916 4,239 0.50 % 
 Net interest income/yield $ 30,390,184 $ 353,867 1.16 % $ 28,507,099 $ 327,547 1.15 % $ 25,969,523 $ 270,940 1.04 % 

 (1) Excludes interest income of $38.4 million, $34.2 million, and $31.7 million in 2024, 2023, and 2022 respectively, related to consolidated trusts with beneficial interests owned by third parties (single-class). 
 (2) Includes current portion of long-term notes. 
 (3) Excludes interest expense of $33.9 million, $30.0 million, and $27.4 million in 2024, 2023, and 2022 respectively, related to consolidated trusts with beneficial interests owned by third parties (single-class). 
 (4) Includes the effect of consolidated trusts with beneficial interests owned by third parties (single-class). 
 
 The $26.3 million year-over-year increase in net interest income was primarily due to an increase of $20.2 million from the shift in the composition of new business volume toward higher yielding loans and a $16.9 million increase in the fair value of derivatives designated in fair value hedge accounting relationships (designated financial derivatives). That increased yield was partially offset by a $6.6 million decrease in cash-basis interest income and a $4.6 million increase in funding costs. In percentage terms, the year-over-year increase was 0.01%. 
 
 For 2023 compared to 2022, the $56.6 million year-over-year increase in net interest income was primarily due to a $48.9 million decrease in funding costs and a $19.9 million increase related to net new business volume. The decrease in funding costs was due to our disciplined funding strategies and higher nominal interest rates that have led to an upward repricing of our excess long-term capital that we raised when interest rates were at historical lows and is held in our investment portfolio. The factors that contributed to an increase in net interest income were partially offset by an $11.2 million decrease in the fair value of derivatives designated in fair value hedge accounting relationships (designated financial derivatives). In percentage terms, the 0.11% increase was primarily attributable to a decrease of 0.16% in funding costs and a decrease of 0.04% in net fair value changes from designated financial derivatives. 
 
 The following table sets forth information about changes in the components of Farmer Mac's net interest income prior to consolidation of certain trusts for the periods indicated. For each category, information is provided on changes attributable to changes in volume (change in volume multiplied by prior rate), and changes in rate (change in rate multiplied by old volume), and then allocated based on the relative size of rate and volume changes from the prior period. 
 
 66 

 Table 9 
 2024 vs. 2023 2023 vs. 2022 
 Increase/(Decrease) Due to Increase/(Decrease) Due to 
 Rate Volume Total Rate Volume Total 
 (in thousands) 
 Income from interest-earning assets: 
 Cash and investments $ 29,813 $ 28,544 $ 58,357 $ 192,859 $ 11,626 $ 204,485 
 Loans, Farmer Mac Guaranteed Securities and USDA Securities 81,814 66,918 148,732 407,548 60,847 468,395 
 Total 111,627 95,462 207,089 600,407 72,473 672,880 
 Expense from other interest-bearing liabilities 112,677 68,398 181,075 577,519 38,686 616,205 
 Change in net interest income prior to consolidation of certain trusts (1) 
 $ (1,050) $ 27,064 $ 26,014 $ 22,888 $ 33,787 $ 56,675 

 (1) Excludes the effect of debt in consolidated trusts with beneficial interests owned by third parties (single-class). 
 
 The following table presents a reconciliation of net interest income and net interest yield to net effective spread. Net effective spread is measured by: including (1) expenses related to undesignated financial derivatives, which consists of income or expense related to contractual amounts due on financial derivatives not designated in hedge relationships (the income or expense related to financial derivatives designated in hedge accounting relationships is already included in net interest income), and (2) the amortization of losses due to terminations or net settlements of financial derivatives; and excluding (1) the amortization of premiums and discounts on assets consolidated at fair value, (2) the net effects of consolidated trusts with beneficial interests owned by third parties (single-class), and (3) the fair value changes of financial derivatives and corresponding financial assets or liabilities in fair value hedge relationships. See "Management's Discussion and Analysis of Financial Condition and Results of Operations—Use of Non-GAAP Measures—Net Effective Spread" for more information about net effective spread. 
 
 Table 10 
 For the Years Ended December 31, 
 2024 2023 2022 
 Dollars Yield Dollars Yield Dollars Yield 
 (dollars in thousands) 
 Net interest income/yield $ 353,867 1.16 % $ 327,547 1.15 % $ 270,940 1.04 % 
 Net effects of consolidated trusts (4,477) 0.02 % (4,171) 0.02 % (4,239) 0.02 % 
 Expense related to undesignated financial derivatives (1,377) — % (4,845) (0.02) % (7,756) (0.03) % 
 Amortization of premiums/discounts on assets consolidated at fair value (29) — % (175) — % (24) — % 
 Amortization of losses due to terminations or net settlements on financial derivatives 3,128 0.01 % 3,230 0.01 % 2,413 0.01 % 
 Fair value changes on fair value hedge relationships (11,548) (0.04) % 5,394 0.02 % (5,805) (0.02) % 
 Net effective spread $ 339,564 1.15 % $ 326,980 1.18 % $ 255,529 1.02 % 

 The $12.6 million year-over-year increase in net effective spread was primarily due to a $20.2 million increase from a shift in the composition of new business volume towards higher-yielding loans. This factor was partially offset by a $6.6 million decrease in cash-basis interest income and a $1.3 million increase in funding costs. In percentage terms, the year-over-year decrease of 0.03% was primarily attributable to an increase of 0.04% related to the increases in funding costs and a decrease of 0.02% in 
 
 67 

 cash-basis interest income, which were partially offset by an increase of 0.03% on the shift in the composition of new business volume towards higher-yielding loans. 
 
 For 2023 compared to 2022, the $71.5 million year-over-year increase in net effective spread was primarily due to a $54.6 million decrease in funding costs, due to our disciplined funding strategies and higher nominal interest rates that have led to an upward repricing of our excess capital that is held in our short-term investment portfolio, and a $20.6 million increase related to net new business volume. In percentage terms, the year-over-year increase of 0.16% was primarily attributable to a decrease in funding costs. 
 
 See Note 14 to the consolidated financial statements for more information about net interest income and net effective spread from Farmer Mac's individual business segments. See "Management's Discussion and Analysis of Financial Condition and Results of Operations—Supplemental Information" for quarterly net effective spread by line of business. 
 
 Provision for and Release of Allowance for Losses and Reserve for Losses . The following table summarizes the components of Farmer Mac's total allowance for losses for the three-year period ended December 31, 2024: 
 
 Table 11 
 
 Allowance
for
Losses Reserve
for Losses Total
Allowance
for Losses 
 (in thousands) 
 Balance as of December 31, 2021 $ 14,492 $ 1,950 $ 16,442 
 Provision for/(release of) losses 
 1,323 (517) 806 
 
 Charge-offs (84) — (84) 
 Balance as of December 31, 2022 $ 15,731 $ 1,433 $ 17,164 
 Provision for losses 
 858 278 1,136 
 
 Balance as of December 31, 2023 $ 16,589 $ 1,711 $ 18,300 
 Provision for/(release of) losses 
 11,579 (89) 11,490 
 
 Charge-offs (4,498) — (4,498) 
 Balance as of December 31, 2024 $ 23,670 $ 1,622 $ 25,292 
 
 See Notes 8 and 12 to the consolidated financial statements and "Management's Discussion and Analysis of Financial Condition and Results of Operations—Risk Management—Credit Risk—Loans and Guarantees." 
 
 During 2024, we recorded a $11.5 million net provision to the total allowance for losses primarily as a result of one permanent planting borrower relationship, risk rating downgrades in Agricultural Finance, and new loan volume in Infrastructure Finance. 
 
 Guarantee and Commitment Fees . The following table presents guarantee and commitment fees, which compensate Farmer Mac for assuming the credit risk on loans underlying off-balance sheet Farmer Mac Guaranteed Securities and LTSPCs, for the years ended December 31, 2024, 2023, and 2022: 
 
 68 

 Table 12 
 For the Years Ended December 31, 
 
 2024 2023 2022 
 (dollars in thousands) 
 Contractual guarantee and commitment fees $ 15,952 $ 15,084 $ 14,235 
 Guarantee obligation amortization 5,273 4,331 5,913 
 Guarantee asset fair value changes (5,487) (2,703) (7,108) 
 Guarantee and commitment fee income $ 15,738 $ 16,712 $ 13,040 

 Guarantee and commitment fee income decreased for the year ended December 31, 2024 compared to 2023, which was due to a decrease in the fair value of our retained beneficial interest in our off-balance sheet securitization. As adjusted for the non-GAAP core earnings presentation, guarantee and commitment fees were $20.3 million for the year ended December 31, 2024, compared to $18.9 million and $18.1 million for the years ended December 31, 2023 and 2022, respectively. 
 
 In Farmer Mac's presentation of non-GAAP core earnings, guarantee and commitment fees include interest income and interest expense related to consolidated trusts owned by third parties to reflect management's view that the net interest income Farmer Mac earns is effectively a guarantee fee on those consolidated Farmer Mac Guaranteed Securities. Farmer Mac has also excluded changes in the fair values of guarantee assets from the presentation of core earnings because management does not expect these fluctuations to have a cumulative net impact on Farmer Mac's financial condition, results of operations, or cash flows if Farmer Mac fulfills its guarantee obligation throughout the term of the guaranteed securities, as is expected. 
 
 For more information about net income attributable to common stockholders, the composition of non-GAAP core earnings, and a reconciliation of net income attributable to common stockholders to core earnings, see Table 6 in "Management's Discussion and Analysis of Financial Condition and Results of Operations—Results of Operations." For more information about the non-GAAP measures Farmer Mac uses, see "Management's Discussion and Analysis of Financial Condition and Results of Operations—Use of Non-GAAP Measures." 
 
 Gains on financial derivatives . The components of gains and losses on financial derivatives for the years ended December 31, 2024, 2023, and 2022 are summarized in the following table: 
 
 Table 13 
 For the Years Ended December 31, 
 
 2024 2023 2022 
 (dollars in thousands) 
 Gains due to fair value changes 
 $ 3,344 $ 5,142 $ 13,495 
 Accrual of contractual payments (1,377) (4,845) (7,756) 
 Gains due to terminations or net settlements 
 669 2,585 16,892 
 Gains on financial derivatives 
 $ 2,636 $ 2,882 $ 22,631 

 These changes in fair value are primarily the result of fluctuations in long-term interest rates. The accrual of periodic cash settlements for interest paid or received from Farmer Mac's interest rate swaps that are undesignated financial derivatives is shown as income or expense related to financial derivatives. Payments or receipts to terminate undesignated derivative positions or net cash settled forward sales contracts on the debt of other GSEs and undesignated U.S. Treasury security futures and initial cash 
 
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 payments received upon the inception of certain undesignated swaps are included in "Gains due to terminations or net settlements" in the table above. See Note 6 to the consolidated financial statements for more information about Farmer Mac's financial derivatives. 
 
 Operating Expenses . The components of operating expenses for the years ended December 31, 2024, 2023, and 2022 are summarized in the following table: 
 
 Table 14 
 
 For the Years Ended December 31, 
 
 2024 2023 2022 
 (dollars in thousands) 
 Compensation and employee benefits $ 63,975 $ 58,914 $ 48,766 
 General and administrative 38,236 34,963 29,772 
 Regulatory fees 3,175 3,222 3,269 
 Total Operating Expenses $ 105,386 $ 97,099 $ 81,807 

 Compensation and Employee Benefits . The increase in compensation and employee benefits expenses for the year ended December 31, 2024 compared to 2023 was largely due to increased headcount and increased stock compensation expense. The increase in compensation and employee benefits expenses for the year ended December 31, 2023 compared to 2022 was largely due to increased headcount. 
 
 General and Administrative Expenses (G&A) . The increase in G&A expenses for the year ended December 31, 2024 compared to 2023 was primarily due to an increase in licensing fees and information technology infrastructure costs from the deployment of our modernized treasury and cash management systems in fourth quarter 2024. We also saw an increase in transactional legal fees as we continue to grow our Broadband Infrastructure and Renewable Energy portfolios. 
 
 Income Tax Expense . The following table presents income tax expense and the effective income tax rate for the years ended December 31, 2024, 2023, and 2022: 
 
 Table 15 
 For the Years Ended December 31, 
 
 2024 2023 2022 
 (dollars in thousands) 
 Income tax expense $ 50,910 $ 53,098 $ 47,535 
 Effective tax rate 19.7 % 21.0 % 21.1 % 

 The decrease in Farmer Mac's effective tax rate in 2024 is primarily attributable to renewable energy investment tax credits that Farmer Mac purchased during 2024. 
 
 Business Volume . 
 
 The following table sets forth the net growth or decrease in Farmer Mac's lines of business for the years ended December 31, 2024 and 2023: 
 
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 Table 16 
 Net New Business Volume 
 For the Years Ended 
 On or Off 
Balance Sheet December 31, 2024 December 31, 2023 
 Net Growth/(Decrease) Net Growth/(Decrease) 
 (in thousands) 
 Agricultural Finance: 
 Farm & Ranch: 
 Loans On-balance sheet $ 281,282 $ (17,300) 
 Loans held in consolidated trusts: 
 Beneficial interests owned by third-party investors (single-class) (1) 
 On-balance sheet 14,383 (44,006) 
 Beneficial interests owned by third-party investors (structured) (1) 
 On-balance sheet 591,639 264,691 
 IO-FMGS (2) 
 On-balance sheet (699) (1,213) 
 USDA Securities On-balance sheet 33,551 (38,430) 
 AgVantage Securities (1) 
 On-balance sheet (1,115,000) 230,000 
 LTSPCs and unfunded loan commitments Off-balance sheet 70,611 177,634 
 Other Farmer Mac Guaranteed Securities (3) 
 Off-balance sheet (26,292) (48,351) 
 Loans serviced for others Off-balance sheet (51,308) 556,984 
 Total Farm & Ranch $ (201,833) $ 1,080,009 
 Corporate AgFinance: 
 Loans On-balance sheet $ 121,951 $ 93,470 
 AgVantage Securities (1) 
 On-balance sheet (8,582) (70,721) 
 Unfunded loan commitments Off-balance sheet 80,357 67,723 
 Total Corporate AgFinance $ 193,726 $ 90,472 
 Total Agricultural Finance $ (8,107) $ 1,170,481 
 Infrastructure Finance: 
 Power & Utilities: 
 Loans On-balance sheet $ 270,217 $ 124,167 
 AgVantage Securities (1) 
 On-balance sheet (377,325) 854,312 
 LTSPCs and unfunded loan commitments Off-balance sheet (63,096) (40,736) 
 Other Farmer Mac Guaranteed Securities (3) 
 Off-balance sheet — (1,169) 
 Total Power & Utilities 
 $ (170,204) $ 936,574 
 Broadband Infrastructure: 
 Loans On-balance sheet $ 144,089 $ 168,614 
 Unfunded loan commitments 
 Off-balance sheet 157,224 15,922 
 Total Broadband Infrastructure $ 301,313 $ 184,536 
 Renewable Energy: 
 Loans On-balance sheet $ 825,414 $ 220,716 
 Unfunded loan commitments Off-balance sheet 103,590 36,635 
 Total Renewable Energy $ 929,004 $ 257,351 
 Total Infrastructure Finance 
 $ 1,060,113 $ 1,378,461 
 Total $ 1,052,006 $ 2,548,942 

 (1) Categories of Farmer Mac Guaranteed Securities. 
 (2) An interest-only Farmer Mac Guaranteed Security retained as part of a structured securitization. 
 (3) Other categories of Farmer Mac Guaranteed Securities that were sold by Farmer Mac to third parties. 
 
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 Farmer Mac's outstanding business volume was $29.5 billion as of December 31, 2024, a net increase of $1.1 billion from December 31, 2023 after taking into account all new business, maturities, sales, and paydowns on existing assets. 
 
 The $0.2 billion net decrease in Farm & Ranch during 2024 resulted from $3.4 billion of scheduled maturities and repayments, partially offset by $3.2 billion of new purchases, commitments, and guarantees. Included in the $3.2 billion is the purchase of $1.5 billion of Farm & Ranch loans. Scheduled loan maturities and repayments in the aggregate amount of $0.6 billion partially offset those purchases. Those purchases include $179.2 million related to Farmer Mac's purchase of two pools of loans from a single agricultural lender. During 2024, Farmer Mac also securitized $0.7 billion loans in on-balance sheet securitizations, which transferred them from loans held for investment to loans held in securitized trusts. 
 
 During 2024, a total of $2.0 billion in Farm & Ranch AgVantage Securities matured or were repaid while Farmer Mac purchased $0.9 billion. This activity primarily reflected slower loan growth resulting in less liquidity needs from Farmer Mac's AgVantage counterparties than in previous years. 
 
 The $0.2 billion net increase in Corporate AgFinance during 2024 primarily resulted from $1.2 billion of new purchases and unfunded loan commitments, which was partially offset by $1.0 billion of scheduled maturities, repayments, sales, and paydowns on revolving commitments. 
 
 The $0.2 billion net decrease in Power & Utilities during 2024 resulted from $0.9 billion of scheduled maturities and repayments, partially offset by $0.7 million of new purchases, unfunded loan commitments, and guarantees. 
 
 The $0.3 billion net increase in Broadband Infrastructure during 2024 resulted from new purchases of $0.5 billion in loans and unfunded commitments, partially offset by $0.2 billion in scheduled maturities and repayments. 
 
 The $0.9 billion net increase in Renewable Energy during 2024 primarily resulted from $1.5 billion in loan purchases and unfunded commitments, partially offset by $0.5 billion in repayments. The net increase in Renewable Energy loan purchases and unfunded commitments primarily reflects the continued strong demand for renewable power generation and storage. 
 
 Farmer Mac's outstanding business volume was $28.5 billion as of December 31, 2023, a net increase of $2.5 billion from December 31, 2022 after taking into account all new business, maturities, and paydowns on existing assets. 
 
 The $1.1 billion net increase in Farm & Ranch during 2023 resulted from $5.0 billion of new purchases, commitments, and guarantees, partially offset by $3.9 billion of scheduled maturities and repayments. Included in the $5.0 billion of new volume is newly purchased servicing rights on $0.6 billion of loans (i.e., loans serviced for others). Loans serviced for others earn servicing fee income rather than interest income and are a component of outstanding business volume because they are assets under our management. 
 
 Farmer Mac also purchased a total of $2.7 billion in Farm & Ranch AgVantage Securities during 2023, which primarily reflected the refinancing of maturing securities. The $2.7 billion in gross purchases was partially offset by $2.5 billion in scheduled maturities. 
 
 72 

 The $0.1 billion net increase in Corporate AgFinance during 2023 resulted from $0.9 billion of new purchases and unfunded loan commitments, which was partially offset by $0.8 billion of scheduled maturities, repayments, and paydowns on revolving commitments. Farmer Mac purchased a total of $578.1 million in loans, including draws on revolving commitments, which was partially offset by $484.6 million in scheduled maturities, repayments, and paydowns on revolving commitments. The increase in loan purchases was primarily due to Farmer Mac's continued focus to support loans to larger and more complex agribusinesses focused on food and fiber processing and other food supply chain production. 
 
 The $0.9 billion net increase in Power & Utilities during 2023 resulted from $1.8 billion of new purchases, unfunded loan commitments, and guarantees, which was partially offset by $0.8 billion of scheduled maturities and repayments. Farmer Mac purchased a total of $1.5 billion in AgVantage Securities and $297.6 million in electric distribution and generation and transmission loans. The $297.6 million in loan purchases was partially offset by $173.4 million in scheduled maturities and repayments. The net increase in loan purchases primarily reflected borrowers' normal-course capital expenditures related to maintaining and upgrading utility infrastructure. 
 
 The $0.2 billion net increase in Broadband Infrastructure during 2023 resulted from $0.3 billion of new purchases and unfunded loan commitments, which was partially offset by $0.1 in repayments. 
 
 The $0.3 billion net increase in Renewable Energy during 2023 primarily reflects $273.5 million in loan purchases, partially offset by $52.7 million in repayments. 
 
 The level and composition of Farmer Mac’s outstanding business volume is based on the relationship between new business, loan sales, scheduled maturities, and repayments on existing assets from year to year. This relationship in turn depends on a variety of factors both internal and external to Farmer Mac. The external factors include general market forces, competition, and our counterparties’ liquidity needs, access to alternative funding, desired products, and assessment of strategic factors. The internal factors include our assessment of profitability, mission fulfillment, credit risk, and customer relationships. For more information about potential growth opportunities in Farmer Mac's lines of business, see "Management's Discussion and Analysis of Financial Condition and Results of Operations—Outlook" in this report. 
 
 The following table sets forth information about the Farmer Mac Guaranteed Securities issued during the periods indicated: 
 
 Table 17 
 For the Years Ended December 31, 
 2024 2023 2022 
 (dollars in thousands) 
 AgVantage securities $ 1,362,720 $ 4,284,405 $ 4,990,483 
 
 Loans securitized and held in consolidated trusts with beneficial interests owned by third parties (structured and single-class) 
 673,451 317,524 460,588 
 Total Farmer Mac Guaranteed Securities Issuances $ 2,036,171 $ 4,601,929 $ 5,451,071 

 Farmer Mac either retains the loans it purchases or securitizes them and retains or sells Farmer Mac Guaranteed Securities backed by those securitized loans. During 2024, Farmer Mac executed two structured securitization transactions, whereby it sold and securitized agricultural mortgage loans resulting in $624.1 million of Farmer Mac Guaranteed Securities. In this transaction, Farmer Mac transferred 
 
 73 

 selected loans to a depositor which then deposited the loans into a trust, at which time the loans became assets of the trust. Farmer Mac concluded that it was the primary beneficiary of the trust because Farmer Mac retained significant interest and has power over the activities most significant to the economic performance of the Variable Interest Entity in its role as Master Servicer. Therefore, Farmer Mac consolidates the assets and liabilities of the trust for this structured securitization. Farmer Mac does not consider the assets held by the related securitization trust to be available to satisfy the claims of the creditors of Farmer Mac and/or the depositor. 
 
 During 2024, 2023, and 2022, Farmer Mac realized no gains or losses from the securitization of loans that it holds in consolidated trusts. Farmer Mac consolidates these loans and presents them as "Loans held for investment in consolidated trusts, at amortized cost" on the consolidated balance sheets. 
 
 During 2024, 2023, and 2022, Farmer Mac realized no gains or losses from the issuance of Farmer Mac Guaranteed USDA Securities or AgVantage Securities. 
 
 74 

 The following table sets forth information about outstanding volume in each of Farmer Mac's lines of business as of the dates indicated: 
 
 Table 18 
 Outstanding Business Volume 
 On or Off 
Balance Sheet As of December 31, 
 2024 2023 2022 
 (in thousands) 
 Agricultural Finance: 
 Farm & Ranch: 
 Loans On-balance sheet $ 5,414,732 $ 5,133,450 $ 5,150,750 
 Loans held in consolidated trusts: 
 Beneficial interests owned by third-party investors (single-class) (1) 
 On-balance sheet 885,295 870,912 914,918 
 Beneficial interests owned by third-party investors (structured) (1) 
 On-balance sheet 1,152,988 561,349 296,658 
 IO-FMGS (2) 
 On-balance sheet 8,710 9,409 10,622 
 USDA Securities On-balance sheet 2,402,423 2,368,872 2,407,302 
 AgVantage Securities (1) 
 On-balance sheet 4,720,000 5,835,000 5,605,000 
 LTSPCs and unfunded loan commitments 
 Off-balance sheet 3,070,554 2,999,943 2,822,309 
 Other Farmer Mac Guaranteed Securities (3) 
 Off-balance sheet 426,310 452,602 500,953 
 Loans serviced for others Off-balance sheet 525,956 577,264 20,280 
 Total Farm & Ranch $ 18,606,968 $ 18,808,801 $ 17,728,792 
 Corporate AgFinance: 
 Loans On-balance sheet $ 1,381,674 $ 1,259,723 $ 1,166,253 
 AgVantage Securities (1) 
 On-balance sheet 280,297 288,879 359,600 
 Unfunded loan commitments 
 Off-balance sheet 225,734 145,377 77,654 
 Total Corporate AgFinance $ 1,887,705 $ 1,693,979 $ 1,603,507 
 Total Agricultural Finance $ 20,494,673 $ 20,502,780 $ 19,332,299 
 Infrastructure Finance: 
 
 Power & Utilities: 
 
 Loans On-balance sheet $ 2,886,576 $ 2,616,359 $ 2,492,192 
 AgVantage Securities (1) 
 On-balance sheet 3,521,143 3,898,468 3,044,156 
 LTSPCs and unfunded loan commitments 
 Off-balance sheet 401,647 464,743 505,479 
 Other Farmer Mac Guaranteed Securities (3) 
 Off-balance sheet — — 1,169 
 Total Power & Utilities 
 $ 6,809,366 $ 6,979,570 $ 6,042,996 
 Broadband Infrastructure: 
 Loans On-balance sheet $ 622,207 $ 478,118 $ 309,504 
 Unfunded loan commitments 
 Off-balance sheet 180,259 23,035 7,113 
 Total Broadband Infrastructure $ 802,466 $ 501,153 $ 316,617 
 Renewable Energy: 
 Loans On-balance sheet $ 1,265,700 $ 440,286 $ 219,570 
 Unfunded loan commitments 
 Off-balance sheet 150,825 47,235 10,600 
 Total Renewable Energy $ 1,416,525 $ 487,521 $ 230,170 
 Total Infrastructure Finance 
 $ 9,028,357 $ 7,968,244 $ 6,589,783 
 Total $ 29,523,030 $ 28,471,024 $ 25,922,082 

 (1) A type of Farmer Mac Guaranteed Security. 
 (2) An interest-only Farmer Mac Guaranteed Security retained as part of a structured securitization. 
 (3) Other categories of Farmer Mac Guaranteed Securities that were sold by Farmer Mac to third parties. 
 
 75 

 The following table summarizes by maturity date the scheduled principal amortization of loans held, loans underlying off-balance sheet Farmer Mac Guaranteed Securities (excluding AgVantage securities) and LTSPCs, USDA Securities, and Farmer Mac Guaranteed USDA Securities as of December 31, 2024: 
 
 Table 19 
 Schedule of Principal Amortization as of December 31, 2024 
 
 Loans Loans Underlying Off-Balance Sheet Farmer Mac Guaranteed Securities and LTSPCs USDA Securities and Farmer Mac Guaranteed USDA Securities Total 
 (in thousands) 
 2025 $ 824,025 $ 422,103 $ 116,709 $ 1,362,837 
 2026 712,891 436,220 117,466 1,266,577 
 2027 803,181 304,487 119,147 1,226,815 
 2028 995,547 254,443 118,173 1,368,163 
 2029 1,051,739 386,820 118,964 1,557,523 
 Thereafter 9,221,789 2,463,446 1,999,774 13,685,009 
 Total $ 13,609,172 $ 4,267,519 $ 2,590,233 $ 20,466,924 

 Of Farmer Mac's $29.5 billion outstanding principal balance of business volume as of December 31, 2024, $8.5 billion were AgVantage securities included in the Agricultural Finance and Infrastructure Finance lines of business. Unlike business volume in the form of purchased loans, USDA Securities, and loans underlying LTSPCs and non-AgVantage Farmer Mac Guaranteed Securities, most AgVantage securities do not require periodic payments of principal based on amortization schedules and instead have fixed maturity dates when the secured general obligation is due. Changes in quarterly AgVantage securities volume are primarily driven by the generally larger transaction sizes for that product, scheduled maturity amounts for a particular quarter, the liquidity needs of Farmer Mac’s AgVantage counterparties, and changes in the pricing and availability of wholesale funding. Based on these factors, Farmer Mac expects its business volumes in AgVantage securities to continue to be volatile. The following table summarizes by maturity date the outstanding principal amount of both on- and off-balance sheet AgVantage securities as of December 31, 2024: 
 
 Table 20 
 AgVantage Balances by Year of Maturity 
 As of 
 December 31, 2024 
 (in thousands) 
 2025 $ 2,028,275 
 2026 1,353,490 
 2027 1,091,393 
 2028 673,300 
 2029 1,061,019 
 Thereafter (1) 
 2,313,963 
 Total $ 8,521,440 

 (1) Includes various maturities ranging from 2030 to 2044. 
 
 The weighted-average remaining maturity of the outstanding AgVantage securities shown in the table above was 4.7 years as of December 31, 2024. 
 
 76 

 Related Party Transactions . As provided by Farmer Mac's statutory charter, only banks, insurance companies, and other financial institutions or similar entities may hold Farmer Mac's Class A voting common stock, and only institutions of the FCS may hold Farmer Mac's Class B voting common stock. Farmer Mac's charter also provides that holders of Class A voting common stock elect five members of Farmer Mac's 15-member board of directors and that holders of Class B voting common stock elect five members of the board of directors. The ownership of Farmer Mac's two classes of voting common stock is currently concentrated in a small number of institutions. Approximately 47% of the Class A voting common stock is held by three financial institutions, with 31% held by one institution. Approximately 97% of the Class B voting common stock is held by five FCS institutions (two of which are related to each other through a parent-subsidiary relationship). 
 
 Unlike some other GSEs, specifically other FCS institutions and the Federal Home Loan Banks, Farmer Mac is not structured as a cooperative owned exclusively by member institutions and established to provide services exclusively to its members. Farmer Mac, as a stockholder-owned, publicly-traded corporation, seeks to fulfill its mission of serving the financing needs of rural America in a way that is consistent with providing a return on the investment of its stockholders, including those who do not directly participate in the secondary market provided by Farmer Mac. Farmer Mac generally requires most financial institutions that participate in Farmer Mac's Agricultural Finance line of business to own a requisite amount of common stock, based on the size and type of institution. As a result of this requirement, coupled with the ability of holders of Class A and Class B voting common stock to elect two-thirds of Farmer Mac's board of directors, Farmer Mac regularly conducts business with "related parties," including institutions affiliated with members of Farmer Mac's board of directors and institutions that own large amounts of Farmer Mac's voting common stock. Farmer Mac has adopted a Code of Business Conduct and Ethics and other related corporate policies that govern any conflicts of interest that may arise in these transactions, and Farmer Mac's policy is to require that any transactions with related parties be conducted in the ordinary course of business, with terms and conditions comparable to those available to any other counterparty not related to Farmer Mac. 
 
 The following table summarizes the material relationships between Farmer Mac and certain related parties. The related parties listed in the table below consist of (1) all holders of at least five percent of a class of Farmer Mac voting common stock as of December 31, 2024 and (2) other institutions that are considered "related parties" through an affiliation with a Farmer Mac director and that have conducted business with Farmer Mac during the two years ended December 31, 2024. The table below does not specify any relationships based on the ownership of Farmer Mac's non-voting common stock or any series of preferred stock. 
 
 Table 21 
 Name of Institution Ownership of 
Farmer Mac Voting Common Stock Affiliation with Any
Farmer Mac Directors Primary Aspects of Institution's
Business Relationship with Farmer Mac 
 AgFirst Farm Credit Bank 84,024 shares of Class B voting common stock
(16.79% of outstanding Class B stock and 5.49% of total voting common stock outstanding)
 None In 2024 and 2023, Farmer Mac earned approximately $1.3 million and $1.4 million, respectively, in fees attributable to transactions with AgFirst, primarily commitment fees for LTSPCs. 
 
 77 

 Name of Institution Ownership of 
Farmer Mac Voting Common Stock Affiliation with Any
Farmer Mac Directors Primary Aspects of Institution's
Business Relationship with Farmer Mac 
 AgriBank, FCB 201,621 shares of Class B voting common stock
(40.30% of outstanding Class B stock and 13.17% of total voting common stock outstanding)
 None 
 Farmer Mac did not conduct any business with AgriBank during 2024 or 2023. 
 
 Bath State Bank Less than 5% ownership Former Farmer Mac director Dennis L. Brack (retired in May 2024) serves as a director of Bath State Bank and Bath State Bancorp, the holding company of Bath State Bank. 
 Farmer Mac purchased $6.5 million and $1.3 million USDA Securities from Bath State Bank in 2024 and 2023, respectively. Farmer Mac also purchased $3.0 million and $0.3 million in Agricultural Finance mortgage loans from Bath State Bank in 2024 and 2023, respectively. 
 
 CoBank, ACB
 163,253 shares of Class B voting common stock
(32.63% of outstanding Class B stock and 10.66% of total voting common stock outstanding) Former Farmer Mac director Everett M. Dobrinski (retired in May 2024) served on CoBank's independent nominating committee until December 2023. 
 
 Farmer Mac purchased $442.7 million and $438.8 million in loans from CoBank in 2024 and 2023, respectively. 
 
 In 2024 and 2023, CoBank retained $4.0 million and $3.6 million of servicing fees related to the loan participations sold to Farmer Mac, respectively. 
 
 Farm Credit of Florida 
 Less than 5% ownership Farmer Mac director Robert Sexton serves as a director of Farm Credit of Florida. 
 Farmer Mac purchased $1.7 million Agricultural Finance mortgage loans from Farm Credit of Florida in 2024. Farmer Mac did not purchase any mortgage loans from Farm Credit of Florida in 2023. 
 
 In 2024 and 2023, Farm Credit of Florida retained $16,000 and $11,000 in servicing fees for its work as a Farmer Mac servicer, respectively. 
 
 Farm Credit Bank of Texas (FCBT) 38,503 shares of Class B voting common stock
(7.70% of outstanding Class B stock and 2.51% of total voting common stock outstanding) None In 2024 and 2023, Farmer Mac earned approximately $3.6 million and $3.4 million, respectively, in fees attributable to transactions with FCBT, primarily commitment fees for LTSPCs. 
 
 In both 2024 and 2023, FCBT retained approximately $0.1 million in servicing fees for its work as a Farmer Mac servicer. 
 
 Matthew 25 Management Corp. 79,484 shares of Class A voting common stock (7.71% of outstanding Class A stock and 5.19% of total voting common stock outstanding) None Farmer Mac did not conduct any business with Matthew 25 Management Corp. during 2024 and 2023. 
 
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 Name of Institution Ownership of 
Farmer Mac Voting Common Stock Affiliation with Any
Farmer Mac Directors Primary Aspects of Institution's
Business Relationship with Farmer Mac 
 National Rural Utilities Cooperative Finance Corporation (CFC) 81,500 shares of Class A voting common stock
(7.91% of outstanding Class A stock and 5.32% of total voting common stock outstanding) None 
 Transactions with CFC represented 27.9% and 37.1% of loans under the Infrastructure Finance line of business during 2024 and 2023, respectively. 
 
 In 2024 and 2023, Farmer Mac earned commitment fees of approximately $0.9 million and $1.0 million, respectively, attributable to transactions with CFC. 
 
 In 2024 and 2023, Farmer Mac earned interest income of $158.4 million and $143.5 million, respectively, attributable to AgVantage transactions with CFC. 
 
 In 2024 and 2023, CFC retained approximately $4.1 million and $3.7 million in servicing fees for its work as a Farmer Mac servicer, respectively. 
 
 Zions Bancorporation, National Association (Zions) 322,100 shares of Class A voting common stock
(31.25% of outstanding Class A stock and 21.04% of total voting common stock outstanding)
 None In 2024 and 2023, Farmer Mac purchased $173.9 million and $160.1 million of Agricultural Finance mortgage loans from Zions, respectively. In 2024 and 2023, Farmer Mac purchased $0.4 million and $0.2 million, of USDA Securities from Zions, respectively. Transactions with Zions represented 3.1% of Farmer Mac's total outstanding business volume (excluding loans serviced for others) as of both December 31, 2024 and 2023. 
 
 In both 2024 and 2023, Zions retained approximately $11.2 million in servicing fees for its work as a Farmer Mac servicer. 
 
 As discussed in more detail in Note 2(o) to the consolidated financial statements, Farmer Mac’s consolidated financial statements include the accounts of variable interest entities ("VIEs") in which Farmer Mac determines itself to be the primary beneficiary, including securitization trusts where Farmer Mac shares the power to make decisions about default mitigation with a related party. If that related party status changes, consolidation or deconsolidation of securitization trusts may occur. For more information about related party transactions, see Note 3 to the consolidated financial statements. 
 
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 Outlook 
 
 Business Outlook 
 
 Products and Portfolio 
 Farmer Mac serves a vital role in serving rural America by offering liquidity, capital, and risk management tools as a secondary market to help increase the accessibility of financing for American agriculture and rural infrastructure. The growth trajectory of Farmer Mac is closely tied to the capital and liquidity needs of the lending institutions serving agriculture and infrastructure businesses and the overall financial health of borrowers in these sectors. Even with continued high market interest rates and global and economic volatility, Farmer Mac's outstanding business volume and net effective spread increased 3.7% and 3.8% in 2024 versus 2023, respectively. The increase in business volume and net effective spread primarily reflects the diversification of Farmer Mac’s business model and the resiliency of the agriculture and infrastructure sectors. 
 
 Several factors continue to influence business volume growth dynamics. The persistently elevated market interest rates have had a direct effect on Farmer Mac’s Farm & Ranch product interest rates, and there generally exists an inverse correlation between Farm & Ranch new loan purchase volumes and changes in Farm & Ranch product interest rates, with higher product interest rates slowing portfolio loan prepayments. Also, a tightening agricultural economy is creating the need for additional liquidity and working capital needs for borrowers managing through this agricultural cycle. The net effect of these forces contributed to positive Farm & Ranch loan purchase portfolio growth in 2024. Future changes in monetary policy, sustained elevated product interest rates, and the financial health of borrowers are anticipated to influence the demand for Agricultural Finance mortgage loans and the pace of repayments. Farmer Mac experienced a decrease in wholesale finance volume during 2024, driven by slower market loan growth and a tightening of market credit spreads that resulted in less liquidity and diversification needs from our counterparties. Any future growth will likely be influenced by market interest rates and credit spreads, overall economic conditions and loan growth opportunities, and the relative value of Farmer Mac’s products versus the broader market. Corporate AgFinance loan purchases and unfunded commitments increased 14.4% in 2024 versus 2023. The Infrastructure Finance segments showed significant business volume growth in 2024, increasing over $1 billion, or 13.3%, to $9.0 billion in 2024 versus 2023. Business volume in Infrastructure Finance was strong across most products and segments in 2024, primarily driven by increased financing activity for renewable energy projects and broadband infrastructure in response to continued strong demand for renewable power generation and storage and data center investments. 
 
 Opportunities for profitable future growth include Farmer Mac's potential role in alleviating liquidity, capital, and return-on-equity capital challenges faced by agricultural and infrastructure lenders. The suite of Farmer Mac's offerings encompasses loan and loan portfolio purchases, participations, guarantees, LTSPCs, wholesale funding, and securitizations. In 2024, Farmer Mac purchased from a single agricultural lender two pools of Farm & Ranch loans with an aggregate outstanding principal balance of $179.2 million. Ongoing business and product development efforts continue to attract institutional investors and nontraditional lenders, resulting in the diversification of Farmer Mac's customer base and product set, potentially generating increased product demand from new sources. Farmer Mac’s expanded loan servicing capabilities enhance our loan portfolio purchase value proposition, adding new product offerings to an increasingly diverse customer base. 
 
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 Growing relationships with larger agriculture lenders, financial industry consolidation, interest rates and market volatility, as well as financial institutions' focus on capital efficiency and liquidity continue to provide increased opportunities for Farmer Mac, influencing the demand for loan purchases, risk management solutions, and wholesale funding. Any such growth may lead to an increase in the average transaction size within Farmer Mac’s lines of business. The financing needs arising from mergers, acquisitions, consolidation, and vertical integration in the agricultural and infrastructure industries present further opportunities for Farmer Mac’s loan purchase products and other financing solutions. And investments supporting consumer and food supply demand may increase financing needs in the food and agriculture supply chain, potentially requiring incremental capital support through the secondary market. Deepening relationships with eligible infrastructure counterparties are expected to continue to create opportunities to support fiber and broadband-related transactions, including significant market activity and investments in wholesale data centers, as well as renewable energy projects. Changes associated with governmental policies, including but not limited to fiscal, monetary, tax, and regulatory policies implemented by the new federal executive administration, have the potential to impact the primary business sectors served by Farmer Mac, which could affect business volume growth and opportunities. 
 
 Funding 
 
 Unlike depository institutions, Farmer Mac's funding sources do not rely on deposits, allowing us to navigate beyond short-term liquidity disruptions and to potentially take advantage of increased opportunities in a competitive lending environment. This is because our debt has a contractual term to maturity and because we have the ability to redeem our callable debt before its original maturity date when market conditions are beneficial to Farmer Mac. In contrast, depository institutions largely rely on demand deposit accounts in which the depositors hold the right to withdraw at any time. During the second half of 2024, we began to see some benefit from calling fixed-rate debt and may continue to see this benefit subject to market conditions. 
 
 Farmer Mac's business may benefit from natural business hedges that help mitigate vulnerability to effects from interest rate volatility. When interest rates rise, prepayments tend to decline, but interest earned on excess cash and capital could increase. Conversely, when interest rates decline, loan purchase volume often increases, but prepayments tend to rise as well. Although these natural business dynamics may not be perfect offsets, they tend to provide some counterbalance to mitigate volatility from changes in short-term interest rates. 
 
 Operations 
 
 Farmer Mac anticipates ongoing increases in operating expenses over the next several years, aligned with our planned expansion of investments in human capital, technology, and business infrastructure. These investments are designed to enhance capacity and efficiency in support of growth opportunities and long-term strategic objectives. By investing in infrastructure and funding platforms, Farmer Mac aims to scale more efficiently in tandem with future portfolio and earnings growth. These initiatives are expected to improve product delivery and funding efficiency, potentially generating more benefits for future growth. 
 
 Another focus of our planned infrastructure investments is a continued effort to expand our servicing capabilities and to enhance the efficiency of processes associated with loan onboarding and servicing. Farmer Mac expects to continue to leverage technology enhancements and servicing standardization efforts to drive scalability and consistency. Technology enhancements are planned for 2025 to continue to 
 
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 incorporate all Farmer Mac loan portfolios onto our servicing platform and to provide flexibility in accessing loan portfolio information, as well as streamlining operational workflows. 
 
 Agricultural Finance Industry Outlook 
 
 Farm Incomes 
 Overall farm profitability has compressed in the last two years. According to the USDA, net cash farm income peaked at $210.1 billion in 2022, a record for both nominal and inflation-adjusted farm profits. The primary driver of profitability in 2022 was higher cash revenues, in contrast to 2019 and 2020, when elevated government support payments supported farm incomes. The USDA currently estimates that annual net cash farm income decreased 25% in 2023 but rebounded 2% higher in 2024. Looking ahead to 2025, the USDA forecasts an additional 22% increase in net cash farm income, fueled by a $33 billion increase in government support payments from the American Relief Act enacted in 2024. If realized, 2025 net cash farm income would reach the third-highest inflation-adjusted level in history. Ad-hoc and supplemental government support payments are not guaranteed annually, but can help offset poor market conditions for producers. 
 
 Commodity prices may see increased volatility in 2025 due to a rebound in global supply levels. Annual grain crop prices, which had faced pressure for much of 2024, stabilized in fourth quarter 2024, and even increased modestly for some crops. Prices were also modestly higher for tree nuts in fourth quarter 2024. Tree nut producers have reduced new plantings in recent years, which, combined with robust exports this marketing year, has provided moderate support for prices. Tree nut prices, including almonds and walnuts, had faced similar pressure in recent years from rising production. However, production was relatively stable in 2024, helping limit and even partially alleviate the buildup in inventories. Within the livestock and animal protein sector, producers benefited from lower feed costs in 2024, particularly the cattle sector. Broadly speaking, farm expenses could also abate somewhat into 2025, with lower expected feed, fertilizer, interest, and fuel costs partially offset by higher expected livestock, labor, and rental rates. Demand for corn and soybean by-products could see a boost in 2025 as renewable diesel and sustainable aviation fuel markets continue to mature. 
 
 The change in U.S. political leadership may introduce both opportunities and challenges for the agricultural sector. Shifts in trade policies, environmental regulations, and immigration laws could result in significant impacts on agricultural producers and the sector as a whole. These changes could lead to both favorable and unfavorable conditions, influencing trade dynamics, the strength of the U.S. dollar, labor costs and availability, and regulatory frameworks. The agricultural sector may experience varying degrees of disruption and adaptation in response to these evolving policies, and these changes could increase the volatility of sector profitability in the near-term. 
 
 Lower prices for several agricultural commodities could have multiple competing effects on loan performance and agricultural credit demand. Constraints on cash flow can cause loan delinquency rates to rise back to and surpass historical averages. This reversion is most likely in commodities experiencing negative market conditions like some grain and permanent crops. Simultaneously, cash flow constraints can increase demand for debt capital to reorganize balance sheets and replace lost incomes. Farmer Mac believes that its portfolio and market strategy is sufficiently diversified by borrower, industry, and region to maintain robust portfolio performance through the current cycle to be positioned to support any expansion of the farm mortgage market that may arise in the coming quarters. 
 
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 Land Values 
 Record-setting farm incomes in 2021 and 2022, combined with historically low interest rates in 2020 and 2021, drove a rapid rise in land values and a decrease in farm delinquencies and bankruptcies. Momentum for farmland values persisted throughout 2023 due to high levels of farm liquidity and a constrained supply of farmland for sale. Land values slowed in some markets in 2024 due to higher interest rates and lower profitability for some agricultural sectors. Land value survey data from the USDA shows a 5% increase in average farm real estate values from June 2023 to June 2024. Annual farm real estate value gains were highest in the Southeast (9.4%) and the Southern Plains (7.5%) and still strong but slowing in the Lake states (4.3%), the Corn Belt (3.7%), and the Southeast (2.4%). 
 
 Farmland value growth rates moderated in the second half of 2024 in the face of continued higher market interest rates and stagnating price for some commodities. The Federal Reserve Bank of Chicago AgLetter reported no change in farmland values in the Seventh District (primarily Iowa, Indiana, Illinois, and Wisconsin) between October 2023 and October 2024. This was down from a 5% increase over the previous 12-month period. Data from the Federal Reserve Bank of Kansas City showed that land values continued to grow in the Tenth District (primarily Kansas, Missouri, Nebraska, and Oklahoma), increasing 5.5% from third quarter 2023 to third quarter 2024. However, the growth rate in both regions has trended consistently lower in the last several years, and growth rates in land values could continue to moderate in 2025. Lower prices for some commodities and an elevated interest rate environment represent headwinds to farmland values, particularly in states like California. A relatively low supply of available farmland in many regions and persistent demand for the asset class across a wide variety of investors could help maintain balance in the farmland transaction markets. 
 
 While regional averages for farmland values generally provide a good barometer for the overall changes in U.S. farmland values, economic forces affecting land markets are highly localized, and some markets may experience greater volatility in farmland values than state or national averages indicate. Based on our robust collateral underwriting standards, we believe that our loan collateral is well-positioned to endure reasonably foreseeable volatility in farmland values that could result from external factors. 
 
 Markets and Weather 
 Exogenous factors facing farm and food producers can create uncertainty and market instability within the sector. Some of the external market conditions that could adversely affect the farm and food sectors into 2025 include foreign trade and trade policy, supply chain disruptions, and weather and environmental conditions. The U.S. agricultural sector has become increasingly dependent on foreign markets as a source of demand, making trade policy an important consideration for farms and food. The USDA projects that U.S. agriculture exports will drop to $170.0 billion in 2025, 3% lower than 2024 and down 13% relative to peak levels in 2022. Through November 2024, agricultural export values were roughly even in 2024 compared to 2023. One challenge for U.S. exports has been the value of the U.S. dollar relative to competing exporters of agricultural goods. The USDA projects this headwind to continue in 2025. Slower global growth could also be a headwind for consumer-oriented products like animal proteins, dairy, fruits, and nuts. Ukrainian corn and wheat export shipments continue to rebound and have approached pre-2022 levels in recent months. Looking ahead, economic and geopolitical uncertainties could lead to higher volatility for the U.S. dollar during 2025. 
 
 Severe weather conditions continue to shape agricultural sectors. In 2024, the U.S. experienced 27 separate billion-dollar weather disasters, as tracked by the National Oceanic and Atmospheric Administration. Many of those events affected agriculture, including midwestern storms, flooding, western wildfires, excessive heat, and drought. Through December 31, 2024, Farmer Mac's portfolio had 
 
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 not experienced any material performance degradation as a result of these events. Federal crop insurance provides a strong mitigator against this risk, but farmers and ranchers face increasingly severe weather incidents and production volatility. 
 
 Drought conditions increased modestly in intensity and prevalence in fourth quarter 2024 after a sizable improvement in conditions in 2023 for large portions of the West Coast. Drought conditions intensified in several western states in the second half of 2024. Nearly one-third of California was classified as in severe drought to start 2025, up from 0% at the beginning of 2024. Farmer Mac had minimal exposure to the areas affected by the southern California wildfires in early 2025. As of January 21, 2025, 17% of the continental U.S. was classified as being in moderate to exceptional drought according to data from the National Center for Environmental Information, which is slightly higher than the same period of 2024. At the end of 2024, approximately 70% of the United States is classified as experiencing some level of drought or dryness according to the National Drought Mitigation Center, USDA, and NOAA. . 
 
 For loans in areas that commonly experience exceptional drought (primarily in California), Farmer Mac's underwriting standards include an assessment of anticipated long-term water availability for the related property and how water availability impacts the collateral value and the borrower's liquidity position to mitigate that risk. 
 
 Agricultural Processing and Food Supply Chain 
 The production of food, feed, fiber, and biofuels has been economically viable in the past few years, but some factors continued to evolve into 2025. Rising consumer inflation boosted the profitability of the food processing and supply chains in 2021 and 2022. Moderating consumer prices in 2023 and 2024 increased the volume of consumer spending but also limited the profit expansion of food and fiber businesses. Biofuels have gained demand due to low-carbon regulations in several states and incremental tax benefits for the production of renewable diesel and sustainable aviation fuel. A large number of planned biofuel projects and new facilities for 2025 could provide support for raw materials such as corn and soybeans, but markets for these fuels are nascent and could evolve or erode rapidly in the coming quarters. A strong U.S. dollar, trade issues, labor availability, changes to consumer demand due to health policy and pharmaceuticals, and a high risk of global economic stress could pose challenges for these sectors in 2025 and 2026. Nonetheless, consumer spending held steady throughout 2024, providing stable conditions for value-added food, feed, fiber, and biofuel consumption. Credit demand in these sectors could grow in the next few quarters if interest rate policy maintains course, inflation rises again, mergers and acquisitions activity increases, or economic uncertainty clears up. 
 
 Infrastructure Finance Industry Outlook 
 
 Power & Utilities 
 Economic conditions affecting rural power and electricity markets typically follow those in the general economy. According to data from the U.S. Energy Information Administration, sales and the revenue from the sale of electricity to customers advanced in 2024, with an annual increase in sales of 1.1% and an increase in revenue of 3.5%, respectively, in the last 12 months through November 2024 compared to November 2023. This increase was the result of higher residential and commercial electricity sales combined with slightly higher average prices paid for electricity relative to 2023. Higher energy input prices, such as natural gas and coal, became a headwind in 2022. After two years of increased prices and heightened volatility, oil and natural gas prices moderated throughout much of 2023 and 2024. Continued geopolitical uncertainty in the Middle East and Eastern Europe could increase energy price volatility, but power producers are generally able to pass higher input costs through to retail electricity prices as 
 
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 evidenced by higher retail electricity prices in 2022 and parts of 2023. Through December 31, 2024, Farmer Mac had not observed material degradation in the financial performance of its Power & Utilities loans, and that portfolio has never had a serious delinquency or default since its inception. Credit demand for electric cooperatives will likely be tied to ongoing normal-course capital expenditures related to maintaining and upgrading utility infrastructure. These growth opportunities may be affected by the demand for electric power in rural areas, increased power demand from regional data centers, capital expenditures by electric cooperatives driven by regulatory or technological changes, the changing interest rate environment, increased policy initiatives to support rural connectivity, and competitive dynamics within the rural utilities cooperative finance industry. Generally, these investments are expected to continue at, or above, historical levels based on the replacement and modernization of existing and new infrastructure. 
 
 Renewable Energy 
 Growth in renewable energy generation and deployment of energy storage technologies has the potential to continue to deepen Farmer Mac's relationships with existing customers through new business opportunities. According to data from the U.S. Energy Information Administration, renewable electricity capacity is expected to grow by 167% in the next ten years, compared to total electric capacity growth of 43%. The rising cost of fossil fuel-based inputs combined with the falling costs of renewable power generation may hasten this increase in capacity along with recently enacted legislation, such as the Inflation Reduction Act of 2022 that incentivizes domestic production in clean energy technologies such as solar and wind. Because of these policy tailwinds, analysis from Bloomberg New Energy Finance (BNEF) estimates that investors will put $3.2 trillion into renewable projects between 2021 and 2050. If realized, growth in renewable energy capacity has the potential to broaden Farmer Mac's customer base focused on financing renewable energy projects and companies. In response to this expected growth, Farmer Mac has hired industry-specialized staff and deployed new financing products tailored to the renewable energy sector, which represents a new and growing market opportunity for Farmer Mac. 
 
 Broadband Infrastructure 
 Rural telecommunication and data connectivity has proven to be of vital economic importance in the last decade, as more households and agricultural enterprises require more data and connectivity to thrive. The rapid growth in digital technologies, including the ongoing interest and investment in artificial intelligence, advancements in cloud computing, and wireless network densification, will require significantly more computing and storage capabilities as well as investment in additional fiber network capacity. These industry tailwinds are creating additional investments in rural telecommunications infrastructure by cooperative and non-cooperative providers, which is aided by access to many federally funded programs, such as USDA's Broadband Equity Access and Deployment Program (BEAD), the Federal Communications Commission's Rural Digital Opportunity Fund (RDOF), the USDA’s ReConnect program, and the USDA’s Telecommunications Infrastructure Loan and Loan Guarantee program. In addition to capital projects spurred by these programs, Farmer Mac could see an increase in financing opportunities for other telecommunications providers in rural areas, with fiber line expansion, wireless broadband deployment, industry consolidation and efficiency through mergers and acquisitions, and data processing center buildouts all increasingly important to rural economic opportunity and the constant connectivity required by the food and agriculture industries. 
 
 The recent change in U.S. political leadership may introduce both opportunities and challenges for the infrastructure sector. Potential changes in tax policy as well as trade and immigration laws could result in significant impacts to infrastructure borrowers, especially for renewable energy projects. These changes could lead to delays in completing current projects and slow future investments in renewable energy and 
 
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 battery storage projects as well as the deployment of fiber and broadband infrastructure in rural areas. The infrastructure sector may experience varying degrees of disruption and adaptation in response to these evolving policies, and these changes could increase the volatility of sector profitability in the near-term. The potential for disruption in these sectors due to policy changes may be somewhat mitigated by the historically strong market demand for electrification, the ongoing diversification of power generating assets from electricity producers, and continued strong investments in data centers and fiber infrastructure. 
 
 Legislative and Regulatory Outlook 
 
 Farmer Mac continues to closely monitor potential legislative and regulatory changes that could significantly impact the organization or its stakeholders, including: 
 
 • The 2024 elections have resulted in single-party control over both the executive and legislative branches of government. Some recent executive branch actions have the potential to influence Farmer Mac's regulatory environment: 
 
 ◦ President Trump has designated Jeffery Hall, who had already been serving on the board of the Farm Credit Administration (FCA), as the board chairman and CEO of FCA, the safety and soundness regulator of Farmer Mac. Chairman Hall will oversee FCA’s regulatory agenda while serving in that role. Any new rules proposed by FCA would not be subject to President Trump's "regulatory freeze" executive order issued on January 20, 2025 because that freeze does not apply to rules approved by a department or agency head appointed or designated by President Trump. FCA's latest regulatory projects plan published in Fall 2024 includes a review of Farmer Mac's regulatory capital framework, with a notice of proposed rulemaking targeted for May 2025. This timeline may change, and Farmer Mac's management team will continue to monitor and engage with this regulatory process as it develops. 
 
 ◦ President Trump has designated Mark Uyeda as the Acting Chairman of the Securities and Exchange Commission (SEC). Similar to any new rules proposed by FCA, any new rules proposed by the SEC would not be subject to President Trump's "regulatory freeze" executive order issued on January 20, 2025 because the Acting Chairman was designated by President Trump. 
 
 • Two of the three members of the FCA board, including Chairman Hall, are currently serving in a "holdover status," meaning that their terms have expired. These board members will continue to serve until the President nominates and the Senate confirms their replacements. 
 
 • FCA's final rule on cyber risk management became effective on January 1, 2025. Farmer Mac does not expect this new rule to have a significant effect on its business practices or operations, as most of the rule's requirements had already been implemented by Farmer Mac before the rule's effective date. 
 
 • Congress is expected to consider a number of significant issues during 2025, including the expiring provisions of the Tax Cuts and Jobs Act of 2017, the debt ceiling, annual spending bills, and the reauthorization or extension of the farm bill. The farm bill, an omnibus legislative bill supporting farmers' profitability, rural community vitality, and infrastructure modernization, is typically updated by Congress every five years. However, the 2018 farm bill has been extended twice for 
 
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 one year each to allow Congress more time to develop new policies included in farm bill reauthorization. The current one-year extension of the 2018 farm bill will expire on September 30, 2025. If Congress does not pass a new farm bill or extend the 2018 farm bill by December 31, 2025, federal agricultural policy will revert to 1930s-era policy, which provides no price support for many key commodities. 
 
 • Farmer Mac continues to work with stakeholders and Congress on changes to its charter in the farm bill reauthorization to better support lenders serving rural areas. Any changes would require Congressional approval and the President's signature. 
 
 • Farmer Mac will continue to monitor Congress’s consideration of tax policy in 2025. Several provisions of the Tax Cuts and Jobs Act of 2017 are scheduled to expire in 2025. Congress is likely to address the expiration of these policies and possibly address other tax policies that may directly affect Farmer Mac, such as the corporate tax rate and potential exemptions for income generated from loans secured by agricultural real estate. 
 
 Balance Sheet Review 
 
 The following table summarizes Farmer Mac's balance sheet as of the periods indicated: 
 
 Table 22 
 As of Change 
 December 31, 2024 December 31, 2023 $ % 
 (in thousands) 
 Assets 
 Cash and cash equivalents $ 1,024,007 $ 888,707 $ 135,300 15 % 
 Investment securities 5,973,301 4,979,504 993,797 20 % 
 Farmer Mac Guaranteed Securities 8,232,234 9,745,548 (1,513,314) (16) % 
 USDA Securities 2,371,352 2,355,412 15,940 1 % 
 Loans, net of allowance 11,166,984 9,607,531 1,559,453 16 % 
 Loans held in trusts 2,037,654 1,431,818 605,836 42 % 
 Other 519,210 515,862 3,348 1 % 
 Total assets $ 31,324,742 $ 29,524,382 $ 1,800,360 6 % 
 Liabilities 
 Notes Payable $ 27,371,174 $ 26,336,542 $ 1,034,632 4 % 
 Debt securities of consolidated trusts held by third parties 1,929,628 1,351,069 578,559 43 % 
 Other 534,914 424,908 110,006 26 % 
 Total liabilities $ 29,835,716 $ 28,112,519 $ 1,723,197 6 % 
 Total equity 1,489,026 1,411,863 77,163 5 % 
 Total liabilities and equity $ 31,324,742 $ 29,524,382 $ 1,800,360 6 % 

 Assets . The increase in total assets was primarily attributable to new loan volume, including those held in consolidated trusts, and a larger investment portfolio. 
 
 Liabilities . The increase in total liabilities was primarily due to an increase in total notes payable to fund the acquisition of loan volume, including those held in consolidated trusts. 
 
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 Equity . The increase in total equity was primarily due to an increase in retained earnings and an increase in accumulated other comprehensive income, which was partially offset by the redemption of the Series C Preferred Stock. 
 
 Risk Management 
 
 Credit Risk – Loans and Guarantees . 
 Agricultural Finance - Direct Credit Exposure 
 
 Farmer Mac's direct credit exposure to Agricultural Finance mortgage loans as of December 31, 2024 was $12.4 billion across 48 states. Farmer Mac applies credit underwriting standards and methodologies to help assess exposures to loan purchases, which may include collateral valuation, financial metrics, and other appropriate borrower financial and credit information. For Corporate AgFinance loans, which are often larger loan exposures to agriculture production and agribusinesses that support agriculture production, food and fiber processing, and other supply chain production, and which may have risk profiles that differ from smaller agricultural mortgage loans, Farmer Mac has implemented methodologies and parameters that help assess credit risk based on the appropriate sector, borrower construct, and transaction complexity. For more information about Farmer Mac's underwriting and collateral valuation standards for Agricultural Finance mortgage loans, see "Business—Farmer Mac's Lines of Business—Agricultural Finance—Underwriting and Collateral Standards—Farm & Ranch" and "Business—Farmer Mac's Lines of Business—Agricultural Finance—Underwriting and Collateral Standards—Corporate AgFinance." 
 
 Farmer Mac's 90-day delinquency measure includes loans 90 days or more past due, as well as loans in foreclosure and non-performing loans where the borrower is in bankruptcy. For Agricultural Finance mortgage loans to which Farmer Mac has direct credit exposure, Farmer Mac's 90-day delinquencies as of December 31, 2024, were $108.9 million (0.88% of the Agricultural Finance mortgage loan portfolio to which Farmer Mac has direct credit exposure), compared to $34.7 million (0.31% of the Agricultural Finance mortgage loan portfolio) as of December 31, 2023. Those 90-day delinquencies consisted of 62 delinquent loans as of December 31, 2024, compared to 23 delinquent loans as of December 31, 2023. The increase in the number of 90-day delinquencies was primarily driven by increased delinquencies in permanent plantings and crops and was concentrated in the Southwest region. The increase in loans 90 days or more delinquent as of December 31, 2024 compared to December 31, 2023 reflects the continued decrease in U.S. farm income driven by weak agricultural commodity prices and elevated input costs. $37.6 million of the increase in 90-day delinquent loans was related to a single permanent planting borrower relationship. The top ten borrower exposures over 90 days delinquent represented over half of the 90-day delinquencies as of December 31, 2024. Farmer Mac believes that it remains adequately collateralized on its delinquent loans. 
 
 Farmer Mac's 90-day delinquency rate as of December 31, 2024 was slightly below Farmer Mac's historical average. In the near-term, our delinquency rate may exceed our historical average due to the current agricultural cycle or changes in the general economy or unforeseen and idiosyncratic events like adverse weather events. Farmer Mac's average 90-day delinquency rate as a percentage of its Agricultural Finance mortgage loan portfolio over the last 15 years is approximately 1%. The highest 90-day delinquency rate observed during that period occurred in 2009 at approximately 2%, which coincided with increased delinquencies in loans within Farmer Mac's ethanol loan portfolio. 
 
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 The following table presents historical information about Farmer Mac's 90-day delinquencies in the Agricultural Finance mortgage loan portfolio compared to the unpaid principal balance of all Agricultural Finance mortgage loans to which Farmer Mac has direct credit exposure: 
 
 Table 23 
 Agricultural Finance Mortgage Loans 90-Day
Delinquencies Percentage 
 (dollars in thousands) 
 As of: 
 December 31, 2024 $ 12,369,477 $ 108,944 0.88 % 
 September 30, 2024 11,466,670 144,407 1.26 % 
 June 30, 2024 11,409,396 62,063 0.54 % 
 March 31, 2024 11,184,817 76,825 0.69 % 
 December 31, 2023 11,223,276 34,677 0.31 % 
 September 30, 2023 11,014,678 42,443 0.39 % 
 June 30, 2023 10,826,201 45,368 0.42 % 
 March 31, 2023 10,680,419 70,646 0.66 % 
 December 31, 2022 10,719,571 43,498 0.41 % 

 Across all of Farmer Mac's lines of business, 90-day delinquencies represented 0.37% of total outstanding business volume as of December 31, 2024, compared to 0.12% as of December 31, 2023 and 0.17% as of December 31, 2022. 
 
 The following table presents outstanding Agricultural Finance mortgage loans and 90-day delinquencies as of December 31, 2024 by year of origination, geographic region, commodity/collateral type, original loan-to-value ratio, and range in the size of borrower exposure: 
 
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 Table 24 
 
 Agricultural Finance Mortgage Loans 90-Day Delinquencies as of December 31, 2024 
 
 Distribution of Agricultural Loans Agricultural Loans 90-Day Delinquencies (1) 
 Percentage 
 (dollars in thousands) 
 By year of origination: 
 2014 and prior 7 % $ 815,515 $ 2,697 0.33 % 
 2015 2 % 274,556 789 0.29 % 
 2016 4 % 443,004 13,230 2.99 % 
 2017 4 % 498,919 2,449 0.49 % 
 2018 5 % 573,941 5,914 1.03 % 
 2019 6 % 764,448 17,627 2.31 % 
 2020 16 % 1,938,280 23,540 1.21 % 
 2021 20 % 2,541,473 5,138 0.20 % 
 2022 13 % 1,652,620 18,774 1.14 % 
 2023 9 % 1,143,957 14,656 1.14 % 
 2024 14 % 1,722,764 4,130 0.24 % 
 Total 100 % $ 12,369,477 $ 108,944 0.88 % 
 By geographic region (2) : 
 
 Northwest 12 % $ 1,448,007 $ 5,343 0.37 % 
 Southwest 29 % 3,600,482 75,818 2.11 % 
 Mid-North 26 % 3,187,263 14,864 0.47 % 
 Mid-South 18 % 2,268,942 7,407 0.33 % 
 Northeast 5 % 563,737 2,157 0.38 % 
 Southeast 10 % 1,301,046 3,355 0.26 % 
 Total 100 % $ 12,369,477 $ 108,944 0.88 % 
 By commodity/collateral type: 
 Crops 49 % $ 6,045,187 $ 43,972 0.73 % 
 Permanent plantings 21 % 2,569,068 50,058 1.95 % 
 Livestock 19 % 2,334,660 8,988 0.38 % 
 Part-time farm 4 % 508,536 5,926 1.17 % 
 Ag. Storage and Processing 7 % 873,439 — — % 
 Other — % 38,587 — — % 
 Total 100 % $ 12,369,477 $ 108,944 0.88 % 
 By original loan-to-value ratio: 
 0.00% to 40.00% 17 % $ 2,080,179 $ 6,710 0.32 % 
 40.01% to 50.00% 21 % 2,644,189 30,834 1.17 % 
 50.01% to 60.00% 33 % 4,043,522 61,165 1.51 % 
 60.01% to 70.00% 21 % 2,552,281 9,307 0.36 % 
 70.01% to 80.00% (3) 
 2 % 262,695 928 0.35 % 
 80.01% to 90.00% (3) 
 — % 26,817 — — % 
 Enterprise Value (4) 
 6 % 759,794 — — % 
 Total 100 % $ 12,369,477 $ 108,944 0.88 % 
 By size of borrower exposure (5) : 
 
 Less than $1,000,000 26 % $ 3,245,032 $ 12,737 0.39 % 
 $1,000,000 to $4,999,999 39 % 4,754,341 46,796 0.98 % 
 $5,000,000 to $9,999,999 14 % 1,769,013 11,807 0.67 % 
 $10,000,000 to $24,999,999 13 % 1,654,391 — — % 
 $25,000,000 and greater 8 % 946,700 37,604 3.97 % 
 Total 100 % $ 12,369,477 $ 108,944 0.88 % 

 (1) Includes loans held and loans underlying off-balance sheet Farmer Mac Guaranteed Securities and LTSPCs 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. 
 (2) Geographic regions: Northwest (AK, ID, MT, OR, WA, WY); Southwest (AZ, CA, CO, HI, NM, NV, UT); Mid-North (IA, IL, IN, MI, MN, NE, ND, SD, WI); Mid-South (AR, KS, LA, MO, OK, TX); Northeast (CT, DE, KY, MA, MD, ME, NH, NJ, NY, OH, PA, RI, VA, VT, WV); Southeast (AL, FL, GA, MS, NC, SC, TN). 
 (3) Primarily part-time farm loans. Loans with an original loan-to-value ratio of greater than 80% are required to have private mortgage insurance. 
 
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 (4) "Enterprise Value" loans are generally secured by all business assets and common stock (in addition to first lien mortgages) of the borrower and the value of the borrowing entity depends on its ability to generate recurring positive cash flow. Enterprise Value is the estimated value of the borrower as a going concern, which is estimated using one or more valuation techniques such as discounted cash flow, cash flow multiples, asset liquidation, or other valuation techniques. 
 (5) Includes aggregated loans to single borrowers or borrower-related entities. 
 
 Another indicator that Farmer Mac considers in analyzing the credit quality of its Agricultural Finance mortgage loans is the level of internally-rated "substandard" assets, both in dollars and as a percentage of the outstanding portfolio. Assets categorized as "substandard" 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, 2024, Farmer Mac's Agricultural Finance mortgage loans (to which it has direct credit exposure) comprising substandard assets were $398.3 million (3.2% of the portfolio), compared to $186.0 million (1.7% of the portfolio) as of December 31, 2023. Those substandard assets comprised 336 loans as of December 31, 2024 and 206 loans as of December 31, 2023. 
 
 The increase of $212.3 million in Agricultural Finance substandard assets during 2024 was primarily attributable to credit risk rating downgrades in permanent plantings and crops. Most of the increase in substandard permanent planting loans were in the Corporate AgFinance segment of the portfolio. Credit performance within the crops and livestock commodities have begun to revert toward historical averages after those commodities were supported by higher commodity prices and federal government support payments in previous years. Overall, Agricultural Finance substandard assets increased as a percentage of our on- and off-balance sheet Agricultural Finance portfolios during 2024. 
 
 The percentage of Agricultural Finance substandard assets within the portfolio as of December 31, 2024 was below the historical average. Farmer Mac's average Agricultural Finance substandard assets as a percentage of its Agricultural Finance mortgage loans over the last 15 years is approximately 4%. The highest substandard asset rate observed during the last 15 years occurred in 2010 at approximately 8%, which coincided with an increase in substandard loans within Farmer Mac's ethanol portfolio. If Farmer Mac's substandard asset rate increases from current levels on a sustained basis, it is likely that Farmer Mac's provision to the allowance for loan losses and the reserve for losses would also increase. 
 
 Although some credit losses are inherent to the business of agricultural lending, Farmer Mac believes that losses associated with the current agricultural credit cycle will be moderated by the strength and diversity of its Agricultural Finance portfolio, which Farmer Mac believes is adequately collateralized. 
 
 Within Agricultural Finance, Farmer Mac considers a Farm & Ranch loan's original loan-to-value ratio as one of many factors in evaluating loss severity. Loan-to-value ratios depend on the market value of a property, as determined in accordance with Farmer Mac's collateral valuation standards. As of December 31, 2024 and 2023, the average unpaid principal balances for Farm & Ranch loans outstanding and to which Farmer Mac has direct credit exposure was $817,000 and $804,000, respectively. Farmer Mac calculates the "original loan-to-value" ratio of a loan by dividing the original loan principal balance by the original appraised property value. This calculation does not reflect any amortization of the original loan balance or any adjustment to the original appraised value to provide a current market value. The original loan-to-value ratio of any cross-collateralized loans is calculated on a combined basis rather than on a loan-by-loan basis. The weighted-average original loan-to-value ratio for Farm & Ranch mortgage loans purchased during 2024 was 49%, compared to 51% for loans purchased during 2023. The weighted-average original loan-to-value ratio for Farm & Ranch mortgage loans and loans underlying off-balance sheet Farmer Mac Guaranteed Securities and LTSPCs was 52% as of both December 31, 2024 and 2023. The weighted-average original loan-to-value ratio for all 90-day delinquencies was 53% and 56% as of December 31, 2024 and 2023, respectively. 
 
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 The weighted-average current loan-to-value ratio (the loan to-value ratio based on original appraised value and current outstanding loan amount adjusted to reflect amortization) for Agricultural Finance mortgage loans and loans underlying off-balance sheet Farmer Mac Guaranteed Securities and LTSPCs was 46% and 47% as of December 31, 2024 and 2023, respectively. 
 
 The following table presents the current loan-to-value ratios for the Agricultural Finance mortgage loans to which Farmer Mac has direct credit exposure, as disaggregated by internally assigned risk ratings: 
 
 Table 25 
 Agricultural Finance Mortgage Loans current loan-to-value ratio by internally assigned risk rating as of December 31, 2024 
 
 Acceptable Special Mention Substandard Total 
 (in thousands) 
 Current loan-to-value ratio (1) : 
 
 0.00% to 40.00% $ 3,410,214 $ 87,789 $ 90,478 $ 3,588,481 
 40.01% to 50.00% 2,744,769 153,869 68,337 2,966,975 
 50.01% to 60.00% 2,912,634 90,581 133,328 3,136,543 
 60.01% to 70.00% 1,503,368 128,850 83,316 1,715,534 
 70.01% to 80.00% 143,100 24,348 4,857 172,305 
 80.01% and greater 15,748 3,815 10,282 29,845 
 Enterprise Value (2) 
 735,479 16,661 7,654 759,794 
 Total $ 11,465,312 $ 505,913 $ 398,252 $ 12,369,477 

 (1) The current loan-to-value ratio is based on original appraised value (or most recently obtained valuation, if available) and current outstanding loan amount adjusted to reflect loan amortization. 
 (2) "Enterprise Value" loans are generally secured by all business assets and common stock (in addition to first lien mortgages) of the borrower and the value of the borrowing entity depends on its ability to generate recurring positive cash flow. Enterprise Value is the estimated value of the borrower as a going concern, which is estimated using one or more valuation techniques such as discounted cash flow, cash flow multiples, asset liquidation, or other valuation techniques. 
 
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 The following table presents Farmer Mac's cumulative net credit losses relative to the cumulative original balance for all Agricultural Finance mortgage loans as of December 31, 2024 by year of origination, geographic region, and commodity/collateral type. The purpose of this table is to present information about realized credit losses relative to original Farm & Ranch purchases, guarantees, and commitments. 
 
 Table 26 
 Agricultural Finance Mortgage Loans Credit Losses Relative to Cumulative 
 Original Loans, Guarantees, and LTSPCs as of December 31, 2024 
 
 Cumulative Original Loans, Guarantees and LTSPCs Cumulative Net Credit Losses/(Recoveries) Cumulative Loss Rate 
 (dollars in thousands) 
 By year of origination: 
 2014 and prior $ 19,926,348 $ 33,785 0.17 % 
 2015 1,268,863 (516) (0.04) % 
 2016 1,621,501 903 0.06 % 
 2017 1,742,186 4,311 0.25 % 
 2018 1,468,333 — — % 
 2019 1,670,711 — — % 
 2020 3,090,061 — — % 
 2021 3,452,587 297 0.01 % 
 2022 2,074,396 455 0.02 % 
 2023 1,477,339 3,942 0.27 % 
 2024 1,837,993 — — % 
 Total $ 39,630,318 $ 43,177 0.11 % 
 By geographic region (1) : 
 
 Northwest $ 4,891,785 $ 12,094 0.25 % 
 Southwest 12,958,106 12,484 0.10 % 
 Mid-North 9,709,624 17,165 0.18 % 
 Mid-South 6,023,413 (613) (0.01) % 
 Northeast 2,091,361 1,075 0.05 % 
 Southeast 3,956,029 972 0.02 % 
 Total $ 39,630,318 $ 43,177 0.11 % 
 By commodity/collateral type: 
 Crops $ 18,190,130 $ 3,790 0.02 % 
 Permanent plantings 8,422,657 14,022 0.17 % 
 Livestock 8,723,391 3,836 0.04 % 
 Part-time farm 1,990,066 1,090 0.05 % 
 Ag. Storage and Processing 2,052,229 20,439 1.00 % 
 Other 251,845 — — % 
 Total $ 39,630,318 $ 43,177 0.11 % 

 (1) Geographic regions: Northwest (AK, ID, MT, OR, WA, WY); Southwest (AZ, CA, CO, HI, NM, NV, UT); Mid-North (IA, IL, IN, MI, MN, NE, ND, SD, WI); Mid-South (AR, KS, LA, MO, OK, TX); Northeast (CT, DE, KY, MA, MD, ME, NH, NJ, NY, OH, PA, RI, VA, VT, WV); Southeast (AL, FL, GA, MS, NC, SC, TN). 
 
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 Included in realized losses in the table above is a charge-off in the amount of approximately $0.5 million related to a single $14.5 million agricultural storage and processing borrower exposure in 2024. Also during 2024, Farmer Mac sold $7.0 million of the holding to reduce the overall exposure to this borrower. That sale resulted in a realized loss in the amount of approximately $1.1 million, before tax. As of December 31, 2024, Farmer Mac had transferred the remaining holding in the amount of approximately $7.1 million from loans held for investment to loans held for sale and recognized an unrealized loss in the amount of approximately $1.0 million, before tax. Thus, in 2024 Farmer Mac incurred an aggregate economic loss on this single agricultural storage and processing exposure in the amount of approximately $2.5 million. 
 
 Analysis of portfolio performance indicates that commodity type is the primary determinant of Farmer Mac's exposure to loss on a given loan. The following tables present concentrations of Agricultural Finance mortgage loans by commodity type within geographic region and cumulative credit losses by origination year and commodity type: 
 
 Table 27 
 As of December 31, 2024 
 Agricultural Finance Mortgage Loans Concentrations by Commodity Type within Geographic Region 
 Crops Permanent
Plantings Livestock Part-time
Farm Ag. Storage and
Processing Other Total 
 (dollars in thousands) 
 By geographic region (1) : 
 
 Northwest $ 718,450 $ 234,312 $ 331,297 $ 126,136 $ 36,436 $ 1,376 $ 1,448,007 
 5.8 % 1.9 % 2.7 % 1.0 % 0.3 % — % 11.7 % 
 Southwest 796,861 1,898,177 600,059 124,189 158,000 23,196 3,600,482 
 6.4 % 15.3 % 4.9 % 1.0 % 1.3 % 0.2 % 29.1 % 
 Mid-North 2,585,910 10,854 276,591 77,194 234,267 2,447 3,187,263 
 20.9 % 0.1 % 2.2 % 0.7 % 1.9 % — % 25.8 % 
 Mid-South 1,289,845 91,847 749,904 67,707 62,869 6,770 2,268,942 
 10.4 % 0.7 % 6.1 % 0.5 % 0.5 % 0.1 % 18.3 % 
 Northeast 200,465 53,493 72,871 50,891 186,017 — 563,737 
 1.6 % 0.5 % 0.6 % 0.4 % 1.5 % — % 4.6 % 
 Southeast 453,656 280,385 303,938 62,419 195,850 4,798 1,301,046 
 3.8 % 2.3 % 2.4 % 0.5 % 1.5 % — % 10.5 % 
 Total $ 6,045,187 $ 2,569,068 $ 2,334,660 $ 508,536 $ 873,439 $ 38,587 $ 12,369,477 
 48.9 % 20.8 % 18.9 % 4.1 % 7.0 % 0.3 % 100.0 % 

 (1) Geographic regions: Northwest (AK, ID, MT, OR, WA, WY); Southwest (AZ, CA, CO, HI, NM, NV, UT); Mid-North (IA, IL, IN, MI, MN, NE, ND, SD, WI); Mid-South (AR, KS, LA, MO, OK, TX); Northeast (CT, DE, KY, MA, MD, ME, NH, NJ, NY, OH, PA, RI, VA, VT, WV); Southeast (AL, FL, GA, MS, NC, SC, TN). 
 
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 Table 28 
 As of December 31, 2024 
 Agricultural Loans Cumulative Credit Losses by Origination Year and Commodity Type 
 Crops Permanent
Plantings Livestock Part-time
Farm Ag. Storage and
Processing Total 
 (in thousands) 
 By year of origination: 
 2014 and prior $ 3,427 $ 9,783 $ 3,836 $ 1,066 $ 15,673 $ 33,785 
 2015 (540) — — 24 — (516) 
 2016 903 — — — — 903 
 2017 — — — — 4,311 4,311 
 2018 — — — — — — 
 2019 — — — — — — 
 2020 — — — — — — 
 2021 — 297 — — — 297 
 2022 — — — — 455 455 
 2023 — 3,942 — — — 3,942 
 2024 — — — — — — 
 Total $ 3,790 $ 14,022 $ 3,836 $ 1,090 $ 20,439 $ 43,177 

 For more information about the credit quality of Farmer Mac's Agricultural Finance mortgage loans and the associated allowance for losses please refer to Note 8 and Note 12 to the consolidated financial statements. Activity affecting the allowance for loan losses and reserve for losses is discussed in "Management's Discussion and Analysis of Financial Condition and Results of Operations—Results of Operations—Provision for and Release of Allowance for Loan Losses and Reserve for Losses." 
 
 Infrastructure Finance - Direct Credit Exposure 
 
 Farmer Mac's direct credit exposure to Infrastructure Finance loans held and loans underlying LTSPCs as of December 31, 2024 was $5.5 billion across 45 states. For more information about Farmer Mac's underwriting and collateral valuation standards for Infrastructure Finance loans, see "Business—Farmer Mac's Lines of Business—Infrastructure Finance—Underwriting and Collateral Standards." As of December 31, 2024, there was one Broadband Infrastructure borrower and one Renewable Energy borrower classified as substandard. The total exposure on those two borrowers was $42.5 million. As of December 31, 2023, there was one Broadband Infrastructure borrower classified as substandard, with an unpaid principal balance of $29.4 million. 
 
 Farmer Mac evaluates credit risk of Infrastructure Finance assets by reviewing a variety of borrower credit risk characteristics. These characteristics can include (but are not limited to) financial metrics, internal risk ratings, ratings assigned by ratings agencies, types of customers served, sources of power supply, and the regulatory environment. 
 
 The following table disaggregates Farmer Mac’s portfolio of Infrastructure Finance loans by portfolio segment and by internally assigned risk ratings. 
 
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 Table 29 
 As of December 31, 2024 
 Infrastructure Finance portfolio by internally assigned risk rating 
 
 Acceptable Special Mention Substandard Total 
 (in thousands) 
 Distribution Cooperative $ 2,583,858 $ — $ — $ 2,583,858 
 Generation and Transmission Cooperative 
 704,365 — — 704,365 
 Renewable Energy 1,403,169 — 13,356 1,416,525 
 Broadband Infrastructure 
 738,946 34,388 29,132 802,466 
 Infrastructure Finance Total 
 $ 5,430,338 $ 34,388 $ 42,488 $ 5,507,214 

 For more information about the credit quality of Farmer Mac's Infrastructure Finance portfolio and the associated allowance for losses please refer to Notes 8 and 12 of the consolidated financial statements. 
 
 Other Considerations Regarding Credit Risk Related to Loans and Guarantees 
 
 The credit exposure on USDA Securities, including those underlying Farmer Mac Guaranteed USDA Securities, is guaranteed by the full faith and credit of the United States. Therefore, Farmer Mac believes that we have little or no credit risk exposure to the USDA Securities in the Agricultural Finance line of business because of the USDA guarantee. As of December 31, 2024, Farmer Mac had not experienced any credit losses on any USDA Securities or Farmer Mac Guaranteed USDA Securities and does not expect to incur any such losses in the future. Because we do not expect credit losses on this portfolio, Farmer Mac does not provide an allowance for losses on its portfolio of USDA Securities. 
 
 Farmer Mac requires many lenders to make representations and warranties about the conformity of Agricultural Finance mortgage loans to Farmer Mac's standards, the accuracy of loan data provided to Farmer Mac, and other requirements related to the loans. Sellers who make these representations and warranties are responsible to Farmer Mac for breaches of those representations and warranties. Farmer Mac has the ability to require a seller to cure, replace, or repurchase a loan sold or transferred to Farmer Mac if any breach of a representation or warranty is discovered that was material to Farmer Mac's decision to purchase the loan or that directly or indirectly causes a default or potential loss on a loan sold or transferred by the seller to Farmer Mac. During the previous three years ended December 31, 2024, there have been no breaches of representations and warranties by sellers that resulted in Farmer Mac requiring a seller to cure, replace, or repurchase a loan. In addition to relying on the representations and warranties of sellers, Farmer Mac also underwrites the Agricultural Finance mortgage loans (other than rural housing and part-time farm mortgage loans) and Infrastructure Finance loans on which it has direct credit exposure. For rural housing and part-time farm mortgage loans, Farmer Mac relies on representations and warranties from the seller that those loans conform to Farmer Mac's specified underwriting criteria. For more information about Farmer Mac's loan eligibility requirements and underwriting standards, see "Business—Farmer Mac's Lines of Business—Agricultural Finance—Loan Eligibility," "Business—Farmer Mac's Lines of Business—Agricultural Finance—Underwriting and Collateral Standards—Farm & Ranch," "Business—Farmer Mac's Lines of Business—Agricultural Finance—Underwriting and Collateral Standards—Corporate AgFinance," and "Business—Farmer Mac's Lines of Business—Infrastructure Finance—Underwriting and Collateral Standards." 
 
 Under contracts with Farmer Mac and in consideration for servicing fees, Farmer Mac-approved servicers service loans in accordance with Farmer Mac's requirements. Servicers are responsible to Farmer Mac for material errors in the servicing of those loans. If a servicer materially breaches the terms of its servicing 
 
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 agreement with Farmer Mac, such as failing to forward payments received or releasing collateral without Farmer Mac's consent, or experiences insolvency or bankruptcy, the servicer is responsible for any corresponding damages to Farmer Mac and, in most cases, Farmer Mac has the right to terminate the servicing relationship for a particular loan or the entire portfolio serviced by the servicer. Farmer Mac also can proceed against the servicer in arbitration or exercise any remedies available to it under law. In September 2024, Farmer Mac notified a field servicer of a breach of its servicing duties and the termination of the servicing relationship for two large borrower relationships effective October 1, 2024. That was Farmer Mac's only exercise of remedies or taking of formal action against any servicers during the previous three years ended December 31, 2024. For more information about Farmer Mac's servicing requirements, see "Business—Farmer Mac's Lines of Business—Agricultural Finance—Loan Servicing" and "Business—Farmer Mac's Lines of Business—Infrastructure Finance—Lenders and Loan Servicing." 
 
 Credit Risk – Counterparty Risk . Farmer Mac is exposed to credit risk arising from its business relationships with other institutions, which include: 
 
 • issuers of AgVantage securities; 
 • approved lenders and servicers; and 
 • interest rate swap counterparties. 
 
 Farmer Mac approves AgVantage counterparties and manages institutional credit risk related to those AgVantage counterparties by requiring them to meet Farmer Mac's standards for creditworthiness for the particular counterparty type and transaction. The required collateralization level is established when the AgVantage facility is entered into with the counterparty and does not change during the life of the AgVantage securities issued under the facility without Farmer Mac's consent. In AgVantage transactions, the corporate obligor is typically required to remove from the pool of pledged collateral loans that become and remain (within specified parameters) delinquent in the payment of principal or interest and to substitute eligible loans that are current in payment or pay down the AgVantage securities to maintain the minimum required collateralization level. 
 
 In the event of a default on an AgVantage security, Farmer Mac would have recourse to the pledged collateral and have rights to the ongoing borrower payments of principal and interest. As a result, Farmer Mac has indirect credit exposure to the Agricultural Finance mortgage loans and Infrastructure loans that secure AgVantage securities. For AgVantage counterparties that are institutional real estate investors or financial funds and other similar entities, Farmer Mac also typically requires that the counterparty (1) maintain a higher collateralization level, through either a higher overcollateralization percentage or lower loan-to-value ratio thresholds and (2) comply with specified financial covenants for the life of the related AgVantage security to avoid default. As of December 31, 2024, Farmer Mac had not experienced any credit losses on any AgVantage securities over the life of the program. For a more detailed description of AgVantage securities, see "Business—Farmer Mac's Lines of Business—Agricultural Finance—Other Products – Agricultural Finance—AgVantage Securities" and "Business—Farmer Mac's Lines of Business—Infrastructure Finance—Other Products – Infrastructure Finance—AgVantage Securities." 
 
 The unpaid principal balance of outstanding on-balance sheet AgVantage securities secured by loans eligible for the Agricultural Finance line of business totaled $5.0 billion as of December 31, 2024 and $6.1 billion as of December 31, 2023. The unpaid principal balance of on-balance sheet AgVantage securities secured by loans eligible for the Infrastructure Finance line of business totaled $3.5 billion as of December 31, 2024 and $3.9 billion as of December 31, 2023. 
 
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 The following table provides information about the issuers of AgVantage securities and the required collateralization levels for those transactions as of December 31, 2024 and 2023: 
 
 Table 30 
 As of December 31, 2024 As of December 31, 2023 
 Counterparty Balance Required Collateralization Balance Required Collateralization 
 (dollars in thousands) 
 AgVantage: 
 CFC $ 3,521,143 100% $ 3,898,468 100% 
 MetLife 2,050,000 103% 2,050,000 103% 
 Rabo AgriFinance 2,020,000 105% 3,085,000 105% 
 Other (1) 
 930,297 100% to 125% 988,879 100% to 125% 
 Total outstanding $ 8,521,440 $ 10,022,347 

 (1) Consists of AgVantage securities issued by 9 and 8 different issuers as of December 31, 2024 and 2023, respectively. 
 
 Farmer Mac manages institutional credit risk related to lenders and servicers by requiring those institutions to meet Farmer Mac's standards for creditworthiness. Farmer Mac monitors the financial condition of those institutions by evaluating financial statements and credit rating agency reports. For more information about Farmer Mac's lender eligibility requirements, see "Business—Farmer Mac's Lines of Business—Agricultural Finance—Lenders" and "Business—Farmer Mac's Lines of Business—Infrastructure Finance—Lenders and Loan Servicing." 
 
 Farmer Mac manages institutional credit risk related to its interest rate swap counterparties through collateralization provisions contained in each of its swap agreements that vary based on the market value of its swap portfolio with each counterparty. Farmer Mac and its interest rate swap counterparties are required to fully collateralize their derivatives positions without any minimum threshold for cleared swap transactions, as well as for non-cleared swap transactions entered into after March 1, 2017. Farmer Mac transacts interest rate swaps with multiple counterparties to reduce counterparty credit exposure concentration. Farmer Mac's usage of cleared derivatives has increased over time as has its exposure to clearinghouses. The usage of cleared swap transactions reduces Farmer Mac's exposure to individual counterparties with the central clearinghouse acting to settle the change in value of contracts on a daily basis. Credit risk related to interest rate swap contracts is discussed in "Management's Discussion and Analysis of Financial Condition and Results of Operations—Risk Management—Interest Rate Risk" and Note 6 to the consolidated financial statements. 
 
 Credit Risk – Other Investments . As of December 31, 2024, Farmer Mac had $1.0 billion of cash and cash equivalents and $6.0 billion of investment securities. The management of the credit risk inherent in these investments is governed by Farmer Mac's internal policies as well as FCA regulations, which can be found at 12 C.F.R. §§ 652.1-652.45 ("Liquidity and Investment Regulations"). In addition to establishing a portfolio of highly liquid investments as an available source of cash, the goals of Farmer Mac's investment policies are designed to minimize Farmer Mac's exposure to financial market volatility, preserve capital, and support Farmer Mac's access to the debt markets. 
 
 The Liquidity and Investment Regulations and Farmer Mac's internal policies require that investments held in Farmer Mac's investment portfolio meet the following creditworthiness standards: (1) at a minimum, at least one obligor of the investment must have a very strong capacity to meet financial commitments for the life of the investment, even under severely adverse or stressful conditions, and generally present a very low risk of default; (2) if the obligor whose capacity to meet financial 
 
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 commitments is being relied upon to meet the standard set forth in subparagraph (1) is located outside of the United States, the investment must also be fully guaranteed by a U.S. government agency; and (3) the investment must exhibit low credit risk and other risk characteristics consistent with the purpose or purposes for which it is held. 
 
 The Liquidity and Investment Regulations and Farmer Mac's internal policies also establish concentration limits, which are intended to limit exposure to any single entity, issuer, or obligor. The Liquidity and Investment Regulations limit Farmer Mac's total credit exposure to any single entity, issuer, or obligor of securities to 10% of Farmer Mac's regulatory capital ($152.6 million as of December 31, 2024). However, Farmer Mac's current policy limits this total credit exposure to 5% of its regulatory capital ($76.3 million as of December 31, 2024). These exposure limits do not apply to obligations of U.S. government agencies or GSEs, although Farmer Mac's current policy restricts investing more than 100% of regulatory capital in the senior non-convertible debt securities of any one GSE. 
 
 Although the Liquidity and Investments Regulations do not establish limits on the maximum amount, expressed as a percentage of Farmer Mac's investment portfolio, that can be invested in each eligible asset class, Farmer Mac's internal policies set forth asset class limits as part of Farmer Mac's overall risk management framework. 
 
 Interest Rate Risk . Farmer Mac is subject to interest rate risk on all interest-earning assets on its balance sheet because of timing differences in the cash flows due to maturity, paydown, or repricing of the assets and debt together with financial derivatives. Cash flow mismatches due to changing interest rates can reduce the earnings of Farmer Mac if assets prepay sooner than expected and the resulting cash flows must be reinvested in lower-yielding investments when Farmer Mac's funding costs cannot be correspondingly reduced. Alternatively, Farmer Mac could realize a decline in income if assets repay more slowly than originally forecasted and the associated maturing debt must be replaced by debt issuances at higher interest rates. 
 
 Interest Rate Risk Management 
 
 The goal of interest rate risk management at Farmer Mac is to manage the balance sheet in a manner that generates stable earnings and value across a variety of interest rate environments. Recognizing that interest rate sensitivities may change with the passage of time and as interest rates change, Farmer Mac regularly assesses this exposure and, if necessary, adjusts its portfolio of interest-earning assets, debt, and financial derivatives. 
 
 Farmer Mac seeks to maintain its exposure to interest rate risk within appropriate limits, as approved by Farmer Mac's board of directors. Farmer Mac's management-level Asset and Liability Committee ("ALCO") provides oversight, establishes guidelines, and approves strategies to maintain interest rate risk within the board-established limits. 
 
 Farmer Mac's primary strategy for managing interest rate risk is to fund asset purchases with debt that together with financial derivatives have similar duration and convexity characteristics and help mitigate impacts from interest rate changes across the yield curve. As part of this strategy, Farmer Mac seeks to issue debt securities across a variety of maturities that together with financial derivatives closely align the forecasted debt and financial derivative cash flows with forecasted asset cash flows. 
 
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 Farmer Mac issues discount notes and both callable and non-callable medium-term notes across a spectrum of maturities to execute its debt issuance strategy. Portions of Farmer Mac's callable debt is issued to mitigate prepayment risk associated with certain interest-earning assets held on balance sheet. In general, as interest rates decline, asset prepayments typically increase, and Farmer Mac may be able to economically extinguish certain callable debt issuances. In addition, Farmer Mac enters into financial derivatives, primarily interest rate swaps, to better match the durations of Farmer Mac's assets and liabilities, thereby reducing overall sensitivity to changing interest rates. 
 
 Taking into consideration the prepayment provisions and the default probabilities associated with its portfolio of interest-earning assets, Farmer Mac incorporates behavioral models when projecting and valuing cash flows associated with these assets. In recognition that borrowers' behaviors in various interest rate environments may change over time, Farmer Mac periodically evaluates the effectiveness of these models compared to actual prepayment experience and adjusts and refines the models as necessary to improve the precision of future prepayment forecasts. 
 
 Changes in interest rates may affect the timing of asset prepayments which may, in turn, impact durations and values of the assets. Declining interest rates generally result in increased prepayments, which shortens the duration of these assets, while rising interest rates generally result in lower prepayments, thereby extending the duration of the assets. 
 
 Farmer Mac is subject to interest rate risk on loans and securities it has committed to acquire but not yet purchased (other than delinquent loans purchased through LTSPCs or loans designated for securitization under a forward purchase agreement). When Farmer Mac commits to purchase these assets, it is exposed to interest rate risk between the time it commits to purchase the loans and the time it issues debt to fund the purchase of these loans. Farmer Mac manages the interest rate risk exposure related to these loans by entering into exchange-traded futures contracts involving U.S. Treasury securities and other financial derivatives. Similarly, when Farmer Mac commits to sell certain assets, the associated interest rate exposure is primarily managed with exchange-traded futures contracts involving U.S. Treasury securities and other financial derivatives. 
 
 Farmer Mac's $1.0 billion of cash and cash equivalents held as of December 31, 2024 mature within three months. As of December 31, 2024, $2.7 billion of the $6.0 billion of investment securities (46%) were floating rate securities with rates that adjust within one year or fixed rate securities with original maturities between three months and one year. Farmer Mac's floating rate investment securities are primarily funded with floating rate debt. The fixed rate investment securities are generally funded in a manner consistent with Farmer Mac's overall funding strategy that approximates a duration and convexity match. 
 
 Interest Rate Risk Metrics 
 
 Farmer Mac regularly evaluates and conducts interest rate shock simulations on its portfolio of financial assets, debt, and financial derivatives and examines a variety of metrics to quantify and manage its exposure to interest rate risk. These metrics include sensitivity to interest rate movements on the market value of equity ("MVE") and forecasted net effective spread ("NES") as well as a duration gap analysis. 
 
 MVE represents management's estimate of the present value of all future cash flows from its current portfolio of on- and off-balance sheet assets, liabilities, and financial derivatives, discounted at current interest rates and appropriate spreads. However, MVE is not indicative of the market value of Farmer Mac as a going concern because these market values are theoretical and do not reflect future business activities. 
 
 100 

 The MVE sensitivity analysis measures the degree to which the market values of Farmer Mac's assets, liabilities, and financial derivatives are estimated to change for a given change in interest rates. 
 
 Farmer Mac's NES simulation represents the difference between projected income over the next twelve months from the current portfolio of interest-earning assets and interest expense produced by the related funding, including associated financial derivatives. Farmer Mac's NES simulation may be impacted by changes in market interest rates resulting from timing differences between maturities and re-pricing characteristics of funded assets and debt together with the associated financial derivatives. The direction and magnitude of any such effect depends on the direction and magnitude of the change in interest rates across the yield curve as well as the composition of Farmer Mac's portfolio. The NES simulation represents an estimate of the net effective spread income that Farmer Mac's current portfolio is expected to produce over a twelve-month horizon. As a result, the NES simulation sensitivity statistics provide a short-term view of Farmer Mac's NES income sensitivity to interest rate shocks. 
 
 Duration is a measure of a financial instrument's fair value sensitivity to small changes in interest rates. Duration gap is calculated using the net estimated durations of Farmer Mac's interest-earning assets, debt, and financial derivatives. Duration gap quantifies the extent to which estimated fair value sensitivities are matched for interest-earning assets, debt and financial derivatives. Duration gap provides a relatively concise measure of the interest rate risk inherent in Farmer Mac's outstanding portfolio. 
 
 A positive duration gap denotes that the duration of Farmer Mac's interest-earning assets is greater than the duration of its debt and financial derivatives. A positive duration gap indicates that with small changes in interest rate movements the fair value change of Farmer Mac's interest-earning assets is more sensitive than the fair value change of its debt and financial derivatives. Conversely, a negative duration gap indicates that with small changes in interest rate movements the fair value change of Farmer Mac's interest-earning assets are less sensitive than the fair value change of its debt and financial derivatives. A duration gap of zero indicates that with small changes in interest rate movements the fair value change of Farmer Mac's interest-earning assets is effectively offset by the fair value change of its debt and financial derivatives. 
 
 Each of the interest rate risk metrics is quantified using asset/liability models and derived based on management's best estimates of factors such as implied forward interest rates across the yield curve, interest rate volatility, and timing of asset prepayments and callable debt redemptions. Accordingly, these metrics are estimates rather than precise measurements. Actual results may differ to the extent there are material changes to Farmer Mac's financial asset portfolio or changes in funding or hedging strategies undertaken to mitigate unfavorable sensitivities to interest rate changes. 
 
 101 

 The following schedule summarizes the results of Farmer Mac's MVE and NES sensitivity analysis as of December 31, 2024 and 2023 to an immediate and instantaneous uniform or "parallel" shift in the yield curve: 
 
 Table 31 
 Percentage Change in MVE from Base Case 
 Interest Rate Scenario As of December 31, 2024 As of December 31, 2023 
 
 +100 basis points (4.0) % (3.6) % 
 -100 basis points 3.6 % 2.9 % 

 Percentage Change in NES from Base Case 
 Interest Rate Scenario As of December 31, 2024 As of December 31, 2023 
 
 +100 basis points (0.8) % — % 
 -100 basis points 1.6 % 0.8 % 

 As of December 31, 2024, Farmer Mac maintained a positive effective duration gap of 3.7 months, up from the 3.4 months reported as of December 31, 2023. Since the end of 2023, the yield curve has steepened, with the yield on 2-year U.S. Treasury Notes decreasing by approximately 1 basis point and the yield on 10-year U.S. Treasury Notes increasing by about 69 basis points.. This shift in rates contributed to an extension in the duration of Farmer Mac's funded assets relative to its liabilities and financial derivatives. 
 
 Financial Derivatives Transactions 
 
 The economic effects of financial derivatives are included in Farmer Mac's MVE, NES, and duration gap analyses. Farmer Mac typically enters into the following types of financial derivative transactions principally to protect against risk from the effects of market price or interest rate movements on the value of interest-earning assets, future cash flows, and debt issuance, and not for trading or speculative purposes: 
 
 • "pay-fixed" interest rate swaps, in which Farmer Mac pays fixed rates of interest to, and receives floating rates of interest from, counterparties; 
 • "receive-fixed" interest rate swaps, in which Farmer Mac receives fixed rates of interest from, and pays floating rates of interest to, counterparties; 
 • "basis swaps," in which Farmer Mac pays floating rates of interest based on one index to, and receives floating rates of interest based on a different index from, counterparties; and 
 • exchange-traded futures contracts involving U.S. Treasury securities. 
 
 As of December 31, 2024, Farmer Mac had $24.9 billion combined notional amount of interest rate swaps, with terms ranging from less than one year to approximately thirty years, of which $10.4 billion were pay-fixed interest rate swaps, $13.9 billion were receive-fixed interest rate swaps, and $0.7 billion were basis swaps. 
 
 Farmer Mac enters into interest rate swaps to more closely match the cash flow and duration characteristics of its interest-earning assets with those of its debt. For example, Farmer Mac transacts pay-fixed interest rate swaps and issues floating rate debt to effectively create fixed rate funding that approximately matches the duration of the corresponding fixed rate assets being funded. Farmer Mac evaluates the overall cost of using interest rate swaps in conjunction with debt issuance as a funding 
 
 102 

 alternative to duration-matched debt and enters into interest rate swaps to manage interest rate risks across the balance sheet. 
 
 Certain financial derivatives are designated as fair value hedges of fixed rate assets classified as available-for-sale or liabilities to protect against fair value changes in the assets or liabilities related to a benchmark interest rate (e.g. SOFR). Also, certain financial derivatives are designated as cash flow hedges to mitigate the volatility of future interest rate payments on floating rate debt. 
 
 As discussed in Note 6 to the consolidated financial statements, all financial derivatives are recorded on the balance sheet at fair value as derivative assets or as derivative liabilities. Changes in the fair values of undesignated financial derivatives are reported in "Gains on financial derivatives" in the consolidated statements of operations. For financial derivatives designated in fair value hedge accounting relationships, changes in the fair values of the hedged items related to the risk being hedged are reported in "Net interest income" in the consolidated statements of operations. Interest accruals on derivatives designated in fair value hedge accounting relationships are also recorded in "Net interest income" in the consolidated statements of operations. For financial derivatives designated in cash flow hedge accounting relationships, the unrealized gain or loss on the derivative is recorded in other comprehensive income. Because the hedging instrument is an interest rate swap and the hedged forecasted transactions are future interest payments on floating rate debt, amounts recorded in accumulated other comprehensive income are reclassified to "Total interest expense" in conjunction with the recognition of interest expense on the debt. All of Farmer Mac's interest rate swap transactions are conducted under standard collateralized agreements that limit Farmer Mac's potential credit exposure to any counterparty. As of both December 31, 2024 and 2023, Farmer Mac had no uncollateralized net exposures based on the mark-to-market value of the portfolio of interest rate swaps. 
 
 Re-funding and repricing risk 
 
 Farmer Mac is subject to re-funding and repricing risk on any floating rate assets that are not funded to contractual maturity. Re-funding and repricing risk arises from potential changes in funding costs resulting from a funding strategy whereby Farmer Mac issues floating rate debt across a variety of maturities to fund floating rate or synthetically floating rate assets that on average may have longer maturities. Changes in Farmer Mac's funding costs relative to the benchmark market index rate to which the assets are indexed can cause changes to net interest income when debt matures and is reissued at then current interest rates to continue funding those assets. 
 
 Farmer Mac is subject to re-funding and repricing risk on a portion of its fixed rate assets as a result of its use of pay-fixed receive-floating interest rate swaps that effectively convert the required funding needed from fixed rate to floating rate. These fixed rate assets are then effectively floating rate assets that require floating rate funding. 
 
 Farmer Mac can meet floating rate funding needs in several ways, including: 
 
 • issuing short-term fixed rate discount notes with maturities that match the reset period of the assets; 
 • issuing floating rate medium-term notes with maturities and reset frequencies that match the assets being funded; 
 • issuing non-maturity matched, floating rate medium-term notes with reset frequencies that match the assets being funded; or 
 
 103 

 • issuing non-maturity matched, fixed rate discount notes or medium-term notes swapped to floating rate to match the interest rate reset dates of the assets. 
 
 To meet certain floating rate funding needs, Farmer Mac frequently issues shorter-term floating-rate medium-term notes or fixed rate medium-term notes paired with a received-fixed interest rate swap because these funding alternatives generally provide a lower cost of funding while generating an effective interest rate match. As funding for these floating rate assets matures, Farmer Mac seeks to refinance the debt associated with these assets in a similar fashion to achieve an appropriate interest rate match in the context of Farmer Mac's overall debt issuance and liquidity management strategies. However, if the funding cost of Farmer Mac’s discount notes or medium-term notes increased relative to the benchmark market index of the associated assets during the time between when these floating rate assets were first funded and when Farmer Mac refinanced the associated debt, Farmer Mac would be exposed to a commensurate reduction of net effective spread. Conversely, if the funding cost on Farmer Mac’s discount notes or medium-term notes decreased relative to the benchmark market index during that time, Farmer Mac would benefit from a commensurate increase to net effective spread. 
 
 Farmer Mac's debt issuance strategy targets balancing liquidity risk and re-funding and repricing risk while maintaining an appropriate liability management profile that is consistent with Farmer Mac's risk tolerance. Farmer Mac regularly adjusts its funding strategies to mitigate the effects of interest rate variability and seeks to maintain an effective mixture of funding structures in the context of its overall liability and liquidity management strategies. 
 
 As of December 31, 2024, Farmer Mac held $7.4 billion of floating rate assets in its lines of business and its investment portfolio that reset based on floating rate market indices, such as the Secured Overnight Financing Rate ("SOFR"). As of the same date, Farmer Mac also had $10.4 billion of interest rate swaps outstanding where Farmer Mac pays a fixed rate of interest and receives a floating rate of interest, primarily SOFR. 
 
 Liquidity and Capital Resources 
 
 Farmer Mac's primary sources of funds to meet its liquidity and funding needs are the proceeds of its debt issuances, guarantee and commitment fees, net effective spread, loan repayments, and repayments of AgVantage and investment securities. Farmer Mac regularly accesses the debt capital markets for funding, and Farmer Mac maintained steady access to the debt capital markets throughout 2024. Farmer Mac funds its purchases of eligible loan assets, USDA Securities, Farmer Mac Guaranteed Securities, and investment assets and finances its operations primarily by issuing debt obligations of various maturities in the debt capital markets. As of December 31, 2024, Farmer Mac had outstanding discount notes of $2.2 billion, medium-term notes that mature within one year of $8.3 billion, and medium-term notes that mature after one year of $17.1 billion. 
 
 Assuming continued access to the debt capital markets, Farmer Mac believes it has sufficient liquidity and capital resources to support its operations for the next 12 months and for the foreseeable future. Farmer Mac has a contingency funding plan to manage unanticipated disruptions in its access to the debt capital markets. Farmer Mac must maintain a minimum of 90 days of liquidity under the Liquidity and Investment Regulations. In accordance with the methodology for calculating available days of liquidity under those regulations, Farmer Mac maintained a monthly average of 301 days of liquidity throughout 2024 and had 264 days of liquidity as of December 31, 2024. 
 
 104 

 Farmer Mac maintains cash, cash equivalents (including U.S. Treasury securities, operational deposits, and other short-term money market instruments), and other investment securities that can be drawn upon for liquidity needs. Farmer Mac's liquidity investments must comply with policies adopted by Farmer Mac's board of directors and with FCA's Liquidity and Investment Regulations, which establish limitations on asset class, dollar amount, issuer concentration, and credit quality. 
 
 The following table presents these assets as of December 31, 2024 and 2023: 
 
 Table 32 
 
 As of December 31, 2024 As of December 31, 2023 
 (in thousands) 
 Cash and cash equivalents $ 1,024,007 $ 888,707 
 Investment securities: 
 Guaranteed by U.S. Government and its agencies 1,634,951 1,249,568 
 Guaranteed by GSEs 4,307,857 3,704,037 
 Asset-backed securities 19,476 19,082 
 Total $ 6,986,291 $ 5,861,394 

 The objectives of the investment portfolio as of December 31, 2024 and 2023 are to provide a level of liquidity that mitigates enterprise risk, provides a reliable source of short-term and long-term liquidity and to support program asset growth. 
 
 Capital Requirements . Farmer Mac is subject to the following statutory capital requirements – minimum, critical, and risk-based. Farmer Mac must comply with the higher of the minimum capital requirement and the risk-based capital requirement. As of December 31, 2024, Farmer Mac was in compliance with its statutory capital requirements and was classified as within "level 1" (the highest compliance level). 
 
 In accordance with the FCA's rule on capital planning, Farmer Mac's board of directors has adopted a policy for maintaining a sufficient level of "Tier 1" capital (consisting of retained earnings, paid-in capital, common stock, and qualifying preferred stock). That policy restricts Tier 1-eligible dividends and any discretionary bonus payments if Tier 1 capital falls below specified thresholds. As of December 31, 2024 and 2023, Farmer Mac's Tier 1 capital ratio was 14.2% and 15.4%, respectively. As of December 31, 2024, Farmer Mac was in compliance with its capital adequacy policy. Farmer Mac does not expect its compliance on an ongoing basis with the FCA's rule on capital planning, including Farmer Mac's policy on Tier 1 capital, to materially affect Farmer Mac's operations or financial condition. 
 
 For more information about the capital requirements applicable to Farmer Mac, its capital adequacy policy, and the FCA's rule on capital planning, see "Business—Government Regulation of Farmer Mac—Capital Standards." See Note 9 to the consolidated financial statements for more information about Farmer Mac's capital position. 
 
 Discount and Medium-term Notes . The following table presents the amount and timing of Farmer Mac's known, fixed, and determinable discount and medium-term note obligations by payment date as of December 31, 2024. The payment amounts represent those amounts due to the investor (including return of discount and interest on debt) and do not include unamortized premiums or discounts or other similar carrying value adjustments. 
 
 105 

 Table 33 
 One Year
or Less One to
Three Years Three to
Five Years Over Five
Years Total 
 (in thousands) 
 Discount notes (1) 
 $ 2,187,992 $ — $ — $ — $ 2,187,992 
 Medium-term notes (1) 
 8,271,327 8,671,819 5,230,031 3,196,125 25,369,302 
 Interest payments on fixed rate medium-term notes (2) 
 596,221 790,174 361,132 254,434 2,001,961 
 Interest payments on floating rate medium-term notes (3) 
 129,862 106,885 45,716 22,516 304,979 

 (1) Future events, including additional issuance of discount notes and medium-term notes and refinancing of those notes, could cause actual payments to differ significantly from these amounts. For more information about discount notes and medium-term notes, see Note 7 to the consolidated financial statements. 
 (2) Interest payments on callable medium-term notes are calculated based on maturity. Future calls of these notes could cause actual interest payments to differ significantly from the amounts presented. 
 (3) Calculated using the effective interest rates as of December 31, 2024. As a result, these amounts do not reflect the effects of changes in the interest rates effective on future interest rate reset dates. 
 
 Farmer Mac enters into financial derivatives contracts under which it either receives cash from counterparties, or is required to pay cash to them, depending on changes in interest rates. Financial derivatives are carried on the consolidated balance sheets at fair value, representing the net present value of expected future cash payments or receipts based on market interest rates as of the balance sheet date adjusted for the consideration of credit risk of Farmer Mac and its counterparties. The fair values of the contracts change daily as market interest rates change. Because the financial derivative liabilities recorded on the consolidated balance sheet as of December 31, 2024 do not represent the amounts that may ultimately be paid under the financial derivative contracts, those liabilities are not included in the table presented above. More information about financial derivatives is included in Note 2(f) and Note 6 to the consolidated financial statements. 
 
 Contingent Liabilities . In conducting its loan purchase activities, Farmer Mac enters into mandatory delivery commitments to purchase agricultural mortgage loans and USDA Securities. In conducting its LTSPC activities, Farmer Mac commits, subject to the applicable LTSPC agreement, to a future purchase of one or more loans from identified pools of eligible loans that met Farmer Mac's standards when the applicable transaction was entered into and Farmer Mac assumed the credit risk on the loans. The following table presents these significant commitments: 
 
 Table 34 
 As of December 31, 
 2024 2023 
 (in thousands) 
 LTSPCs and purchase commitments 
 $ 4,029,019 $ 3,680,333 
 Mandatory commitments to purchase loans and USDA Securities 53,980 31,049 

 For more information about Farmer Mac's commitments to purchase loans, see Note 12 to the consolidated financial statements. 
 
 Off-Balance Sheet Arrangements 
 
 Farmer Mac offers approved lenders two credit enhancement alternatives to increase their liquidity or lending capacity while retaining the cash flow benefits of their loans: (1) certain categories of Farmer Mac Guaranteed Securities; and (2) LTSPCs. Both products are available through each of the Agricultural Finance and Infrastructure Finance lines of business. For securitization trusts where Farmer Mac is the primary beneficiary, the trust assets and liabilities are included on Farmer Mac's consolidated balance 
 
 106 

 sheet. For securitization trusts where Farmer Mac is not the primary beneficiary and in the event of deconsolidation, both of these alternatives create off-balance sheet obligations for Farmer Mac. See Note 12 to the consolidated financial statements for more information about consolidation and Farmer Mac's off-balance sheet business activities. 
 
 As of December 31, 2024 and 2023, outstanding off-balance sheet LTSPCs and Farmer Mac Guaranteed Securities totaled $4.5 billion and $4.1 billion, respectively. The following table presents the balance of outstanding LTSPCs, off-balance sheet Farmer Mac Guaranteed Securities, and unfunded loan commitments as of December 31, 2024 and 2023: 
 
 Table 35 
 Outstanding Balance of LTSPCs and
Off-Balance Sheet Farmer Mac Guaranteed Securities 
 As of December 31, 
 2024 2023 
 (in thousands) 
 Agricultural Finance: 
 Corporate AgFinance: 
 Unfunded loan commitments 
 $ 225,734 $ 145,377 
 Farm & Ranch: 
 LTSPCs and unfunded loan commitments 
 3,070,554 2,999,943 
 Farmer Mac Guaranteed Securities 426,310 452,602 
 Total Agricultural Finance obligations 3,722,598 3,597,922 
 Infrastructure Finance: 
 
 Power & Utilities: 
 
 LTSPCs and unfunded loan commitments 
 401,647 464,743 
 
 Broadband Infrastructure: 
 
 Unfunded loan commitments 
 180,259 23,035 
 Renewable Energy: 
 Unfunded loan commitments 
 150,825 47,235 
 Total Infrastructure Finance obligations 
 732,731 535,013 
 Total off-balance sheet $ 4,455,329 $ 4,132,935 

 See "Management's Discussion and Analysis of Financial Condition and Results of Operations—Risk Management—Credit Risk – Loans and Guarantees" and Notes 2(c), 2(e), 5 and 12 to the consolidated financial statements for more information about Farmer Mac Guaranteed Securities and Notes 2(m) and 12 to the consolidated financial statements for more information about LTSPCs. 
 
 Other Matters 
 
 None. 
 
 107 

 Supplemental Information 
 
 The following tables present quarterly and annual information about new business volume, repayments, and outstanding business volume: 
 
 Table 36 
 New Business Volume 
 Agricultural Finance Infrastructure Finance 
 
 Farm & 
 Ranch 
 Corporate AgFinance Power & Utilities Broadband Infrastructure Renewable Energy Total 
 (in thousands) 
 For the quarter ended: 
 December 31, 2024 $ 1,034,489 $ 313,123 $ 78,018 $ 209,729 $ 496,437 $ 2,131,796 
 September 30, 2024 776,023 307,325 360,950 187,021 357,659 1,988,978 
 June 30, 2024 698,787 288,740 132,958 102,075 271,890 1,494,450 
 March 31, 2024 665,916 290,525 113,545 2,250 347,898 1,420,134 
 December 31, 2023 1,282,045 188,272 404,908 29,603 225,986 2,130,814 
 September 30, 2023 1,384,273 275,932 557,043 50,936 17,390 2,285,574 
 June 30, 2023 1,574,169 218,136 205,236 89,056 71,611 2,158,208 
 March 31, 2023 469,013 203,211 590,412 92,819 89,747 1,445,202 
 December 31, 2022 1,114,255 165,395 71,278 68,944 43,737 1,463,609 
 
 For the year ended: 
 December 31, 2024 $ 3,175,215 $ 1,199,713 $ 685,471 $ 501,075 $ 1,473,884 $ 7,035,358 
 December 31, 2023 4,709,500 885,551 1,757,599 262,414 404,734 8,019,798 

 108 

 Table 37 
 Repayments of Assets 
 Agricultural Finance Infrastructure Finance 
 Farm & 
Ranch Corporate AgFinance Power & Utilities Broadband Infrastructure Renewable Energy Total 
 (in thousands) 
 For the quarter ended: 
 Scheduled $ 41,265 $ 231,672 $ 38,003 $ 52,970 $ 174,920 $ 538,830 
 Unscheduled 120,505 36,526 25,084 — — 182,115 
 December 31, 2024 $ 161,770 $ 268,198 $ 63,087 $ 52,970 $ 174,920 $ 720,945 
 
 Scheduled $ 1,079,136 $ 239,596 $ 548,161 $ 94,513 $ 138,123 $ 2,099,529 
 Unscheduled 117,538 41,842 26,629 — — 186,009 
 September 30, 2024 $ 1,196,674 $ 281,438 $ 574,790 $ 94,513 $ 138,123 $ 2,285,538 
 
 Scheduled $ 752,473 $ 141,565 $ 62,237 $ 16,062 $ 138,725 $ 1,111,062 
 Unscheduled 342,594 89,576 32,984 — — 465,154 
 June 30, 2024 $ 1,095,067 $ 231,141 $ 95,221 $ 16,062 $ 138,725 $ 1,576,216 
 
 Scheduled $ 402,088 $ 118,885 $ 90,096 $ 36,218 $ 93,112 $ 740,399 
 Unscheduled 150,903 99,325 32,481 — — 282,709 
 March 31, 2024 $ 552,991 $ 218,210 $ 122,577 $ 36,218 $ 93,112 $ 1,023,108 
 
 Scheduled $ 827,122 $ 133,468 $ 40,122 $ 13,492 $ 69,040 $ 1,083,244 
 Unscheduled 106,041 102,131 18,469 — — 226,641 
 December 31, 2023 $ 933,163 $ 235,599 $ 58,591 $ 13,492 $ 69,040 $ 1,309,885 
 
 Scheduled $ 922,223 $ 110,383 $ 75,031 $ 5,967 $ 14,716 $ 1,128,320 
 Unscheduled 108,960 104,999 20,578 — — 234,537 
 September 30, 2023 $ 1,031,183 $ 215,382 $ 95,609 $ 5,967 $ 14,716 $ 1,362,857 
 
 Scheduled $ 1,050,480 $ 81,386 $ 553,860 $ 5,084 $ 52,203 $ 1,743,013 
 Unscheduled 96,507 55,976 13,138 — — 165,621 
 June 30, 2023 $ 1,146,987 $ 137,362 $ 566,998 $ 5,084 $ 52,203 $ 1,908,634 
 
 Scheduled $ 279,676 $ 78,482 $ 42,475 $ 53,334 $ 11,424 $ 465,391 
 Unscheduled 231,288 128,254 57,354 — — 416,896 
 March 31, 2023 $ 510,964 $ 206,736 $ 99,829 $ 53,334 $ 11,424 $ 882,287 
 
 Scheduled $ 447,976 $ 64,308 $ 71,624 $ 4,047 $ 9,809 $ 597,764 
 Unscheduled 136,245 132,366 1,201 — — 269,812 
 December 31, 2022 $ 584,221 $ 196,674 $ 72,825 $ 4,047 $ 9,809 $ 867,576 
 
 For the year ended: 
 Scheduled $ 2,274,962 $ 731,718 $ 738,497 $ 199,763 $ 544,880 $ 4,489,820 
 Unscheduled 731,540 267,269 117,178 — — 1,115,987 
 December 31, 2024 $ 3,006,502 $ 998,987 $ 855,675 $ 199,763 $ 544,880 $ 5,605,807 
 
 Scheduled $ 3,079,501 $ 403,719 $ 711,488 $ 77,877 $ 147,383 $ 4,419,968 
 Unscheduled 542,796 391,360 109,539 — — 1,043,695 
 December 31, 2023 $ 3,622,297 $ 795,079 $ 821,027 $ 77,877 $ 147,383 $ 5,463,663 

 109 

 Table 38 
 Outstanding Business Volume 
 Agricultural Finance Infrastructure Finance 
 Farm & 
Ranch Corporate AgFinance Power & Utilities Broadband Infrastructure Renewable Energy Total 
 (in thousands) 
 As of: 
 December 31, 2024 $ 18,606,968 $ 1,887,705 $ 6,809,366 $ 802,465 $ 1,416,525 $ 29,523,029 
 September 30, 2024 18,090,374 1,842,780 6,794,435 645,706 1,095,008 28,468,303 
 June 30, 2024 18,504,501 1,816,893 7,008,276 553,197 875,472 28,758,339 
 March 31, 2024 18,900,906 1,766,294 6,970,537 467,186 742,307 28,847,230 
 December 31, 2023 18,808,801 1,693,979 6,979,570 501,153 487,521 28,471,024 
 September 30, 2023 18,461,835 1,741,306 6,633,252 485,043 330,575 27,652,011 
 June 30, 2023 18,116,503 1,680,756 6,171,818 440,074 327,901 26,737,052 
 March 31, 2023 17,685,961 1,599,982 6,533,581 356,101 308,493 26,484,118 
 December 31, 2022 17,728,792 1,603,507 6,042,997 316,616 230,170 25,922,082 

 Table 39 
 On-Balance Sheet Outstanding Business Volume 
 Fixed Rate 5- to 10-Year ARMs & Resets 1-Month to 3-Year ARMs Total Held in Portfolio 
 (in thousands) 
 As of: 
 December 31, 2024 $ 14,356,171 $ 3,370,540 $ 6,815,034 $ 24,541,745 
 September 30, 2024 14,328,691 3,311,001 6,265,792 23,905,484 
 June 30, 2024 14,064,831 3,273,764 6,850,137 24,188,732 
 March 31, 2024 14,166,500 3,194,246 6,849,237 24,209,983 
 December 31, 2023 14,133,794 3,171,672 6,455,359 23,760,825 
 September 30, 2023 13,727,280 3,019,317 6,255,690 23,002,287 
 June 30, 2023 13,721,129 3,003,560 5,493,104 22,217,793 
 March 31, 2023 13,607,740 3,020,229 5,924,032 22,552,001 
 December 31, 2022 13,693,810 3,031,288 5,251,427 21,976,525 

 110 

 The following table presents the quarterly net effective spread (a non-GAAP measure) by segment: 
 
 Table 40 
 
 Net Effective Spread 
 
 Agricultural Finance Infrastructure Finance Treasury 
 Farm & 
Ranch Corporate AgFinance Power & Utilities Broadband Infrastructure Renewable Energy Funding Investments Net Effective Spread 
 Dollars 
 Yield 
 Dollars
Yield Dollars
Yield Dollars
Yield Dollars
Yield Dollars
Yield Dollars
Yield Dollars
Yield 
 (dollars in thousands) 
 For the quarter ended: 
 December 31, 2024 
 $ 32,556 $ 7,891 $ 5,059 $ 3,414 $ 4,859 $ 31,242 $ 2,507 $ 87,528 
 0.96 % 1.95 % 0.32 % 2.34 % 1.76 % 0.42 % 0.15 % 1.16 % 
 September 30, 2024 35,755 6,397 4,785 2,794 3,810 30,912 943 85,396 
 1.05 % 1.56 % 0.30 % 2.21 % 1.78 % 0.42 % 0.05 % 1.16 % 
 June 30, 2024 34,156 7,866 5,253 2,393 2,999 30,268 661 83,596 
 0.98 % 1.91 % 0.32 % 2.16 % 1.86 % 0.41 % 0.04 % 1.14 % 
 March 31, 2024 32,843 7,971 4,890 2,342 2,049 32,474 475 83,044 
 0.95 % 2.05 % 0.30 % 2.08 % 1.75 % 0.45 % 0.03 % 1.14 % 
 December 31, 2023 
 33,329 8,382 4,916 2,426 1,540 33,361 597 84,551 
 0.98 % 2.06 % 0.31 % 2.06 % 1.69 % 0.47 % 0.04 % 1.19 % 
 September 30, 2023 32,718 8,250 3,979 2,383 1,150 34,412 532 83,424 
 0.97 % 2.05 % 0.26 % 2.15 % 1.46 % 0.49 % 0.04 % 1.20 % 
 June 30, 2023 34,388 7,444 3,681 2,127 1,100 32,498 594 81,832 
 1.03 % 1.92 % 0.25 % 2.25 % 1.47 % 0.48 % 0.04 % 1.20 % 
 March 31, 2023 32,465 7,148 3,599 1,908 858 31,738 (543) 77,173 
 0.97 % 1.94 % 0.24 % 2.53 % 1.53 % 0.47 % (0.04) % 1.15 % 
 December 31, 2022 32,770 7,471 3,271 1,689 935 27,656 (2,689) 71,103 
 0.98 % 1.94 % 0.24 % 2.39 % 1.76 % 0.42 % (0.19) % 1.07 % 

 111 

 The following table presents quarterly core earnings (a non-GAAP measure) reconciled to net income attributable to common stockholders: 
 
 Table 41 
 Core Earnings by Quarter End 
 December 2024 September 2024 June 2024 March 2024 December 2023 September 2023 June 2023 March 2023 December 2022 
 (in thousands) 
 Revenues: 
 Net effective spread $ 87,528 $ 85,396 $ 83,596 $ 83,044 $ 84,551 $ 83,424 $ 81,832 $ 77,173 $ 71,103 
 Guarantee and commitment fees 5,086 4,997 5,256 4,982 4,865 4,828 4,581 4,654 4,677 
 Gain on sale of investment securities — — 1,052 — — — — — — 
 Loss on sale of mortgage loan — — (1,147) — — — — — — 
 Other (491) 1,133 481 1,077 767 1,056 409 1,067 390 
 Total revenues 92,123 91,526 89,238 89,103 90,183 89,308 86,822 82,894 76,170 
 
 Credit related expense/(income): 
 Provision for/(release of) losses 3,872 3,258 6,230 (1,870) (575) (181) 1,142 750 1,945 
 REO operating expenses — 196 — — — — — — 819 
 
 Total credit related expense/(income) 3,872 3,454 6,230 (1,870) (575) (181) 1,142 750 2,764 
 
 Operating expenses: 
 Compensation and employee benefits 15,641 15,237 14,840 18,257 15,523 14,103 13,937 15,351 12,105 
 General and administrative 12,452 8,625 8,904 8,255 8,916 9,100 9,420 7,527 8,055 
 Regulatory fees 1,000 725 725 725 725 831 831 835 832 
 Total operating expenses 29,093 24,587 24,469 27,237 25,164 24,034 24,188 23,713 20,992 
 
 Net earnings 59,158 63,485 58,539 63,736 65,594 65,455 61,492 58,431 52,414 
 Income tax expense 9,938 12,681 11,970 13,553 13,881 13,475 12,539 12,756 11,210 
 Preferred stock dividends 5,666 5,897 6,792 6,791 6,791 6,792 6,791 6,791 6,791 
 Core earnings $ 43,554 $ 44,907 $ 39,777 $ 43,392 $ 44,922 $ 45,188 $ 42,162 $ 38,884 $ 34,413 
 
 Reconciling items: 
 Gains/(losses) on undesignated financial derivatives due to fair value changes $ 3,084 $ (1,064) $ (359) $ 1,683 $ (836) $ 2,921 $ 2,141 $ 916 $ 1,596 
 Gains/(losses) on hedging activities due to fair value changes 5,737 205 2,604 3,002 (3,598) 3,210 (4,901) (105) (148) 
 Unrealized (losses)/gains on trading assets (83) 99 (87) (14) (37) 1,714 (57) 359 31 
 Net effects of amortization of premiums/discounts and deferred gains on assets consolidated at fair value (39) 27 26 31 88 29 29 29 57 
 Net effects of terminations or net settlements on financial derivatives 534 (503) (1,505) (192) (800) (79) 583 523 1,268 
 Issuance costs on the retirement of preferred stock — (1,619) — — — — — — — 
 
 Income tax effect related to reconciling items (1,939) 260 (143) (947) 1,089 (1,638) 464 (362) (590) 
 Net income attributable to common stockholders $ 50,848 $ 42,312 $ 40,313 $ 46,955 $ 40,828 $ 51,345 $ 40,421 $ 40,244 $ 36,627
FEDERAL AGRICULTURAL MORTGAGE CORP 10-K

Item 7. Management’s Discussion and Analysis
