NOTES PAYABLE

Farmer Mac's borrowings consist of discount notes and medium-term notes, both of which are unsecured general obligations of the Corporation. Discount notes generally have original maturities of one year or less, whereas medium-term notes generally have maturities of six months to 15 years.

The following table sets forth information related to Farmer Mac's borrowings as of December 31, 2011 and 2010:



	December 31, 2011
	Outstanding as of December 31			Average Outstanding During the Year
	Amount		Rate	Amount		Rate
	(dollars in thousands)
Due within one year:
Discount notes	$	5,129,978	0.14%	$	4,102,109	0.22%
Medium-term notes	45,000		0.17%	130,009		0.30%
Current portion of long-term notes	912,901		1.40%
	$	6,087,879	0.33%
Due after one year:
Medium-term notes due in:
2013	$	937,690	1.11%
2014	1,277,938		3.09%
2015	632,905		2.21%
2016	760,772		2.10%
Thereafter	495,577		3.84%
	4,104,882		2.41%
Total	$	10,192,761	1.17%

	December 31, 2010
	Outstanding as of December 31			Average Outstanding During the Year
	Amount		Rate	Amount		Rate
	(dollars in thousands)
Due within one year:
Discount notes	$	3,810,232	0.23%	$	2,426,090	0.26%
Medium-term notes	259,996		0.33%	685,374		0.50%
Current portion of long-term notes	439,191		1.21%
	$	4,509,419	0.33%
Due after one year:
Medium-term notes due in:
2012	$	652,731	1.81%
2013	582,120		1.66%
2014	984,090		3.69%
2015	892,643		2.35%
Thereafter	319,072		4.11%
	3,430,656		2.68%
Total	$	7,940,075	1.35%

The maximum amount of Farmer Mac's discount notes outstanding at any month end during each of the years ended December 31, 2011 and 2010 was $5.1 billion and $3.8 billion, respectively.

Callable medium-term notes give Farmer Mac the option to redeem the debt at par value on a specified call date or at any time on or after a specified call date. The following table summarizes by maturity date, the amounts and costs for Farmer Mac debt callable in 2012 as of December 31, 2011:



Debt Callable in 2012 as of December 31, 2011
Maturity	Amount		Rate
(dollars in thousands)
2013	$	39,000	0.66%
2014	98,000		1.18%
2015	52,000		1.48%
2016	112,000		2.36%
Thereafter	204,000		3.45%
	$	505,000	2.35%

The following schedule summarizes the earliest interest rate reset date of total borrowings outstanding as of December 31, 2011, including callable and non-callable medium-term notes, assuming callable notes are redeemed at the initial call date:



	Earliest Interest Rate Reset Date of Borrowings Outstanding
	Amount		Weighted-Average Rate
	(dollars in thousands)
Debt with interest
rate resets in:
2012	$	6,781,826	0.48%
2013	708,737		1.33%
2014	1,180,061		3.25%
2015	580,990		2.28%
2016	648,970		2.06%
Thereafter	292,177		4.10%
Total	$	10,192,761	1.17%

During 2011 and 2010, Farmer Mac called $0.7 billion and $0.8 billion of callable medium-term notes, respectively.

Authority to Borrow from the U.S. Treasury

Farmer Mac's statutory charter authorizes it to borrow up to $1.5 billion from the U.S. Treasury, if necessary, to fulfill its obligations under any guarantee. The debt would bear interest at a rate determined by the U.S. Treasury based on the then current cost of funds to the United States. The charter requires the debt to be repaid within a reasonable time. As of December 31, 2011, Farmer Mac had not utilized this borrowing authority and does not expect to utilize this borrowing authority in the near future.

Gains and Losses on the Repurchase of Outstanding Debt

Farmer Mac did not repurchase any of its outstanding debt in 2011, 2010 or 2009.