Loans and Allowance for Losses and Concentrations of Credit Risk (Tables)

6 Months Ended

Jun. 30, 2013

Jun. 30, 2012

Loans and Allowance for Losses [Abstract]

Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block]

Loans

Farmer Mac classifies loans as either held for investment or held for sale. Loans held for investment are recorded at the unpaid principal balance, net of unamortized premium or discount and other cost adjustments. Loans held for sale are reported at the lower of cost or fair value determined on a pooled basis. The following table displays the composition of the loan balances as of June 30, 2013 and December 31, 2012:

Table 5.1

	June 30, 2013									December 31, 2012
	Unsecuritized			In Consolidated Trusts			Total			Unsecuritized			In Consolidated Trusts			Total
	(in thousands)
Farm & Ranch	$	1,712,902		$	164,056		$	1,876,958		$	1,519,415		$	160,436		$	1,679,851
Rural Utilities	688,153			361,767			1,049,920			663,097			368,848			1,031,945
Total unpaid principal balance (1)	2,401,055			525,823			2,926,878			2,182,512			529,284			2,711,796
Unamortized premiums, discounts and other cost basis adjustments	(3,570		)	33,225			29,655			981			34,291			35,272
Lower of cost or fair value adjustment on loans held for sale	—			—			—			(5,943		)	—			(5,943		)
Total loans	$	2,397,485		$	559,048		$	2,956,533		$	2,177,550		$	563,575		$	2,741,125
Loans held for investment, at amortized cost	$	2,397,485		$	559,048		$	2,956,533		$	1,503,559		$	563,575		$	2,067,134
Loans held for sale, at lower of cost or fair value	—			—			—			673,991			—			673,991
Total loans	2,397,485			559,048			2,956,533			2,177,550			563,575			2,741,125
Allowance for loan losses	(7,123		)	(245		)	(7,368		)	(10,986		)	(365		)	(11,351		)
Total loans, net of allowance	$	2,390,362		$	558,803		$	2,949,165		$	2,166,564		$	563,210		$	2,729,774

(1) Unpaid principal balance is the basis of presentation in disclosures of outstanding balances for Farmer Mac's lines of business. See "Management's Discussion and Analysis—Results of Operations—Business Volume."

Allowance for Credit Losses on Financing Receivables [Table Text Block]

The following is a summary of the changes in the allowance for losses for the three and six months ended June 30, 2013 and 2012:

Table 5.2

	June 30, 2013									June 30, 2012
	Allowance for Loan Losses			Reserve for Losses			Total Allowance for Losses			Allowance for Loan Losses			Reserve for Losses		Total Allowance for Losses
	(in thousands)
For the Three Months Ended:
Beginning Balance	$	7,967		$	6,285		$	14,252		$	10,581		$	7,385	$	17,966
(Release of)/provision for losses	(529		)	(175		)	(704		)	(1,220		)	1,394		174
Charge-offs	(70		)	—			(70		)	—			—		—
Ending Balance	$	7,368		$	6,110		$	13,478		$	9,361		$	8,779	$	18,140
For the Six Months Ended:
Beginning Balance	$	11,351		$	5,539		$	16,890		$	10,161		$	7,355	$	17,516
(Release of)/provision for losses	(99		)	571			472			(800		)	1,424		624
Charge-offs	(3,884		)	—			(3,884		)	—			—		—
Ending Balance	$	7,368		$	6,110		$	13,478		$	9,361		$	8,779	$	18,140

During second quarter2013, Farmer Mac recorded releases to its allowance for loan losses of $0.5 million and releases to its reserve for losses of $0.2 million. Farmer Mac also recorded charge-offs of $0.1 million to its allowance for loan losses during second quarter 2013. The charge-offs recorded in first quarter 2013 included a $3.6 million charge-off related to one ethanol loan that transitioned to REO during the quarter and for which Farmer Mac had previously provided a specific allowance. During second quarter 2012, Farmer Mac recorded releases to its allowance for loan losses of $1.2 million and provisions to its reserve for losses of $1.4 million. Farmer Mac recorded no charge-offs to its allowance for losses during second quarter 2012.

The following tables present the changes in the allowance for losses for the three and six months ended June 30, 2013 and 2012 by commodity type:

Table 5.3

	June 30, 2013
	Crops			Permanent Plantings			Livestock			Part-time Farm			Ag. Storage and Processing (including ethanol facilities)			Other			Total
	(in thousands)
For the Three Months Ended:
Beginning Balance	$	2,617		$	2,326		$	1,587		$	733		$	6,971		$	18		$	14,252
(Release of)/provision for losses	(212		)	(158		)	(308		)	(238		)	225			(13		)	(704		)
Charge-offs	—			—			—			(70		)	—			—			(70		)
Ending Balance	$	2,405		$	2,168		$	1,279		$	425		$	7,196		$	5		$	13,478
For the Six Months Ended:
Beginning Balance	$	2,589		$	2,316		$	1,534		$	784		$	9,661		$	6		$	16,890
(Release of)/provision for losses	(184		)	41			(255		)	(289		)	1,160			(1		)	472
Charge-offs	—			(189		)	—			(70		)	(3,625		)	—			(3,884		)
Ending Balance	$	2,405		$	2,168		$	1,279		$	425		$	7,196		$	5		$	13,478

	June 30, 2012
	Crops		Permanent Plantings			Livestock			Part-time Farm			Ag. Storage and Processing (including ethanol facilities)		Other		Total
	(in thousands)
For the Three Months Ended:
Beginning Balance	$	4,266	$	3,482		$	636		$	1,475		$	8,100	$	7	$	17,966
Provision for/(release of) losses	15		(794		)	(173		)	(76		)	1,202		—		174
Charge-offs	—		—			—			—			—		—		—
Ending Balance	$	4,281	$	2,688		$	463		$	1,399		$	9,302	$	7	$	18,140
For the Six Months Ended:
Beginning Balance	$	4,133	$	3,365		$	685		$	1,223		$	8,106	$	4	$	17,516
Provision for/(release of) losses	148		(677		)	(222		)	176			1,196		3		624
Charge-offs	—		—			—			—			—		—		—
Ending Balance	$	4,281	$	2,688		$	463		$	1,399		$	9,302	$	7	$	18,140

Schedule of Allowance for Losses by Impairment Method and Commodity [Table Text Block]

The following tables present the unpaid principal balances of loans held and loans underlying LTSPCs and Farmer Mac Guaranteed Securities and the related allowance for losses by impairment method and commodity type as of June 30, 2013 and December 31, 2012:

Table 5.4

	As of June 30, 2013
	Crops		Permanent Plantings		Livestock		Part-time Farm		Ag. Storage and Processing (including ethanol facilities)		Other		Total
	(in thousands)
Ending Balance:
Collectively evaluated for impairment:
On-balance sheet	$	1,155,620	$	280,110	$	275,527	$	46,808	$	40,797	$	1,646	$	1,800,508
Off-balance sheet	1,215,222		569,468		949,317		120,293		160,383		9,114		3,023,797
Total	$	2,370,842	$	849,578	$	1,224,844	$	167,101	$	201,180	$	10,760	$	4,824,305
Individually evaluated for impairment:
On-balance sheet	$	22,979	$	33,647	$	10,116	$	9,593	$	—	$	115	$	76,450
Off-balance sheet	6,408		3,109		5,650		1,567		—		—		16,734
Total	$	29,387	$	36,756	$	15,766	$	11,160	$	—	$	115	$	93,184
Total Farm & Ranch loans:
On-balance sheet	$	1,178,599	$	313,757	$	285,643	$	56,401	$	40,797	$	1,761	$	1,876,958
Off-balance sheet	1,221,630		572,577		954,967		121,860		160,383		9,114		3,040,531
Total	$	2,400,229	$	886,334	$	1,240,610	$	178,261	$	201,180	$	10,875	$	4,917,489
Allowance for Losses:
Collectively evaluated for impairment:
On-balance sheet	$	1,506	$	485	$	474	$	46	$	2,548	$	—	$	5,059
Off-balance sheet	379		215		643		41		4,648		3		5,929
Total	$	1,885	$	700	$	1,117	$	87	$	7,196	$	3	$	10,988
Individually evaluated for impairment:
On-balance sheet	$	427	$	1,467	$	102	$	313	$	—	$	—	$	2,309
Off-balance sheet	93		1		60		25		—		2		181
Total	$	520	$	1,468	$	162	$	338	$	—	$	2	$	2,490
Total Farm & Ranch loans:
On-balance sheet	$	1,933	$	1,952	$	576	$	359	$	2,548	$	—	$	7,368
Off-balance sheet	472		216		703		66		4,648		5		6,110
Total	$	2,405	$	2,168	$	1,279	$	425	$	7,196	$	5	$	13,478

	As of December 31, 2012
	Crops		Permanent Plantings		Livestock		Part-time Farm		Ag. Storage and Processing (including ethanol facilities)		Other		Total
	(in thousands)
Ending Balance:
Collectively evaluated for impairment:
On-balance sheet	$	977,564	$	260,047	$	268,869	$	50,287	$	42,812	$	—	$	1,599,579
Off-balance sheet	1,169,710		584,880		1,002,164		136,482		144,637		11,000		3,048,873
Total	$	2,147,274	$	844,927	$	1,271,033	$	186,769	$	187,449	$	11,000	$	4,648,452
Individually evaluated for impairment:
On-balance sheet	$	22,002	$	29,647	$	11,511	$	12,660	$	4,337	$	115	$	80,272
Off-balance sheet	2,073		7,958		5,197		2,436		—		901		18,565
Total	$	24,075	$	37,605	$	16,708	$	15,096	$	4,337	$	1,016	$	98,837
Total Farm & Ranch loans:
On-balance sheet	$	999,566	$	289,694	$	280,380	$	62,947	$	47,149	$	115	$	1,679,851
Off-balance sheet	1,171,783		592,838		1,007,361		138,918		144,637		11,901		3,067,438
Total	$	2,171,349	$	882,532	$	1,287,741	$	201,865	$	191,786	$	12,016	$	4,747,289
Allowance for Losses:
Collectively evaluated for impairment:
On-balance sheet	$	1,406	$	586	$	499	$	46	$	2,265	$	—	$	4,802
Off-balance sheet	476		215		680		57		3,996		5		5,429
Total	$	1,882	$	801	$	1,179	$	103	$	6,261	$	5	$	10,231
Individually evaluated for impairment:
On-balance sheet	$	684	$	1,465	$	335	$	665	$	3,400	$	—	$	6,549
Off-balance sheet	23		50		20		16		—		1		110
Total	$	707	$	1,515	$	355	$	681	$	3,400	$	1	$	6,659
Total Farm & Ranch loans:
On-balance sheet	$	2,090	$	2,051	$	834	$	711	$	5,665	$	—	$	11,351
Off-balance sheet	499		265		700		73		3,996		6		5,539
Total	$	2,589	$	2,316	$	1,534	$	784	$	9,661	$	6	$	16,890

Impaired Financing Receivables [Table Text Block]

The following tables present by commodity type the unpaid principal balances, recorded investment, and specific allowance for losses related to impaired loans and the recorded investment in loans on nonaccrual status as of June 30, 2013 and December 31, 2012:

Table 5.5

	As of June 30, 2013
	Crops		Permanent Plantings		Livestock		Part-time Farm		Ag. Storage and Processing (including  ethanol facilities)		Other		Total
	(in thousands)
Impaired Loans:
With no specific allowance:
Recorded investment	$	7,475	$	15,845	$	9,644	$	1,664	$	—	$	—	$	34,628
Unpaid principal balance	7,369		15,702		9,460		1,654		—		—		34,185
With a specific allowance:
Recorded investment (1)	23,131		21,488		6,354		9,562		—		119		60,654
Unpaid principal balance	22,019		21,054		6,305		9,506		—		115		58,999
Associated allowance	520		1,468		162		338		—		2		2,490
Total:
Recorded investment	30,606		37,333		15,998		11,226		—		119		95,282
Unpaid principal balance	29,388		36,756		15,765		11,160		—		115		93,184
Associated allowance	520		1,468		162		338		—		2		2,490
Recorded investment of loans on nonaccrual status (2)	$	10,512	$	19,373	$	6,229	$	6,701	$	—	$	—	$	42,815

(1) Impairment analysis was performed in the aggregate in consideration of similar risk characteristics of the assets and historical statistics on $53.4 million (56 percent) of impaired loans as of June 30, 2013, which resulted in a specific reserve of $1.1 million.

(2) Includes $15.3 million of loans that are less than 90 days delinquent but which have not met Farmer Mac's performance criteria for returning to accrual status.

	As of December 31, 2012
	Crops		Permanent Plantings		Livestock		Part-time Farm		Ag. Storage and Processing (including  ethanol facilities)		Other		Total
	(in thousands)
Impaired Loans:
With no specific allowance:
Recorded investment	$	7,295	$	11,652	$	7,644	$	3,140	$	—	$	907	$	30,638
Unpaid principal balance	7,247		11,509		7,489		3,090		—		901		30,236
With a specific allowance:
Recorded investment (1)	17,214		26,567		9,360		12,118		4,337		117		69,713
Unpaid principal balance	16,829		26,095		9,219		12,007		4,337		114		68,601
Associated allowance	706		1,515		355		682		3,400		1		6,659
Total:
Recorded investment	24,509		38,219		17,004		15,258		4,337		1,024		100,351
Unpaid principal balance	24,076		37,604		16,708		15,097		4,337		1,015		98,837
Associated allowance	706		1,515		355		682		3,400		1		6,659
Recorded investment of loans on nonaccrual status (2)	$	11,888	$	15,789	$	5,141	$	8,180	$	4,337	$	—	$	45,335

(1) Impairment analysis was performed in the aggregate in consideration of similar risk characteristics of the assets and historical statistics on $56.0 million (56 percent) of impaired loans as of December 31, 2012, which resulted in a specific reserve of $1.1 million.

(2) Includes $15.7 million of loans that are less than 90 days delinquent but which have not met Farmer Mac's performance criteria for returning to accrual status.

The following table presents by commodity type the average recorded investment and interest income recognized on impaired loans for the three and six months ended June 30, 2013 and 2012:

Table 5.6

	June 30, 2013
	Crops		Permanent Plantings		Livestock		Part-time Farm		Ag. Storage and Processing (including  ethanol facilities)		Other		Total
	(in thousands)
For the Three Months Ended:
Average recorded investment in impaired loans	$	34,879	$	46,300	$	17,403	$	12,181	$	—	$	571	$	111,334
Income recognized on impaired loans	61		123		38		78		—		—		300
For the Six Months Ended:
Average recorded investment in impaired loans	$	31,422	$	43,606	$	17,270	$	13,207	$	1,446	$	722	$	107,673
Income recognized on impaired loans	403		497		192		272		—		—		1,364

	June 30, 2012
	Crops		Permanent Plantings		Livestock			Part-time Farm		Ag. Storage and Processing (including  ethanol facilities)		Other		Total
	(in thousands)
For the Three Months Ended:
Average recorded investment in impaired loans	$	27,873	$	35,012	$	16,036		$	17,671	$	4,400	$	1,041	$	102,033
Income recognized on impaired loans	64		376		63			83		—		—		586
For the Six Months Ended:
Average recorded investment in impaired loans	$	28,521	$	32,925	$	14,118		$	15,992	$	4,880	$	1,039	$	97,475
Income recognized on impaired loans	141		676		116		—	174		—		—		1,107

Schedule of Certain Loans Acquired in Transfer Acquired During Period [Table Text Block]

During the three and six months ended June 30, 2013, Farmer Mac purchased six defaulted loans having an unpaid principal balance of $5.9 million and eight defaulted loans having an unpaid principal balance of $6.1 million, respectively, from pools underlying Farm & Ranch Guaranteed Securities and LTSPCs.  During the three and six months ended June 30, 2012, Farmer Mac purchased four defaulted loans having an unpaid principal balance of $3.1 million and five defaulted loans having an unpaid principal balance of $3.9 million, respectively, from pools underlying Farm & Ranch Guaranteed Securities and LTSPCs.

The following tables present information related to Farmer Mac's acquisition of defaulted loans for the three and six months ended June 30, 2013 and 2012 and the outstanding balances and carrying amounts of all such loans as of June 30, 2013 and December 31, 2012:

Table 5.7

	For the Three Months Ended				For the Six Months Ended
	June 30, 2013		June 30, 2012		June 30, 2013		June 30, 2012
	(in thousands)
Unpaid principal balance at acquisition date:
Loans underlying LTSPCs	$	—	$	2,530	$	37	$	2,530
Loans underlying Farmer Mac Guaranteed Securities	5,935		598		6,038		1,327
Total unpaid principal balance at acquisition date	5,935		3,128		6,075		3,857
Contractually required payments receivable	6,086		3,125		6,229		3,857
Impairment recognized subsequent to acquisition	61		—		447		15
Recovery/release of allowance for defaulted loans	839		893		889		933

	June 30, 2013		December 31, 2012
	(in thousands)
Outstanding balance	$	39,448	$	41,737
Carrying amount	35,794		33,798

Schedule of Certain Loans Acquired in Transfer Acquired During Period, Delinquencies and Credit Losses [Table Text Block]

Net credit losses and 90-day delinquencies as of and for the periods indicated for loans held and loans underlying Farm & Ranch Guaranteed Securities and LTSPCs are presented in the table below. Information is not presented for loans underlying Farm & Ranch AgVantage securities and the USDA Guarantees and Rural Utilities lines of business.  Each AgVantage security is a general obligation of an issuing institution approved by Farmer Mac and is secured by eligible loans in an amount at least equal to the outstanding principal amount of the security.  Farmer Mac excludes the loans that secure AgVantage securities from the credit risk metrics it discloses because of the credit quality of the issuing institutions, the collateralization level for the securities, and because delinquent loans are required to be removed from the pool of pledged loans and replaced with current eligible loans.  

As of June 30, 2013, there were no probable losses inherent in Farmer Mac's AgVantage securities due to the credit quality of the obligors, as well as the underlying collateral.  To date, Farmer Mac has not experienced any credit losses on any Farm & Ranch AgVantage securities. All USDA Guaranteed Securities, including those that collateralize the Farmer Mac Guaranteed Securities issued in Farmer Mac's USDA Guarantees line of business, are guaranteed by the USDA. Each USDA guarantee that covers a USDA Guaranteed Security is an obligation backed by the full faith and credit of the United States. As of June 30, 2013, neither Farmer Mac nor Farmer Mac II LLC had experienced any credit losses on any of those USDA Guaranteed Securities, including those underlying Farmer Mac Guaranteed Securities. As of June 30, 2013, there were no delinquencies and no probable losses inherent in the Farmer Mac's rural utilities loans held or in any Farmer Mac Guaranteed Securities – Rural Utilities.  As of June 30, 2013, Farmer Mac has not experienced credit losses on any rural utilities loans held or on any Farmer Mac Guaranteed Securities – Rural Utilities.

Table 5.8

	90-Day Delinquencies (1)				Net Credit Losses/(Recoveries)
	As of				For the Six Months Ended
	June 30, 2013		December 31, 2012		June 30, 2013		June 30, 2012
	(in thousands)
On-balance sheet assets:
Farm & Ranch:
Loans	$	27,469	$	29,592	$	2,857	$	(262	)
Total on-balance sheet	$	27,469	$	29,592	$	2,857	$	(262	)
Off-balance sheet assets:
Farm & Ranch:
LTSPCs	$	6,453	$	3,671	$	—	$	—
Total off-balance sheet	$	6,453	$	3,671	$	—	$	—
Total	$	33,922	$	33,263	$	2,857	$	(262	)

(1) Includes loans and loans underlying Farm & Ranch Guaranteed Securities and LTSPCs that are 90 days or more past due, in foreclosure, restructured after delinquency, and in bankruptcy, excluding loans performing under either their original loan terms or a court-approved bankruptcy plan.

Of the $27.5 million and $29.6 million of on-balance sheet loans reported as 90-day delinquencies as of June 30, 2013 and December 31, 2012, respectively, $0.8 million and $4.6 million, respectively, are loans subject to "removal-of-account" provisions.

Financing Receivable Credit Quality Indicators [Table Text Block]

The following tables present credit quality indicators related to Farm & Ranch loans held and loans underlying LTSPCs and Farm & Ranch Guaranteed Securities (excluding AgVantage securities) as of June 30, 2013 and December 31, 2012:  

Table 5.9

	As of June 30, 2013
	Crops		Permanent Plantings		Livestock		Part-time Farm		Ag. Storage and Processing (including ethanol facilities)		Other		Total
	(in thousands)
Credit risk profile by internally assigned grade (1)
On-balance sheet:
Acceptable	$	1,129,443	$	266,597	$	261,983	$	43,519	$	11,461	$	1,646	$	1,714,649
Other assets especially mentioned ("OAEM") (2)	26,177		13,513		13,722		3,289		10,017		—		66,718
Substandard (2)	22,979		33,647		9,938		9,593		19,319		115		95,591
Total on-balance sheet	$	1,178,599	$	313,757	$	285,643	$	56,401	$	40,797	$	1,761	$	1,876,958
Off-Balance Sheet:
Acceptable	$	1,188,073	$	550,220	$	882,026	$	115,107	$	131,394	$	8,416	$	2,875,236
Other assets especially mentioned ("OAEM") (2)	6,210		8,252		35,451		1,923		6,920		591		59,347
Substandard (2)	27,347		14,105		37,490		4,830		22,069		107		105,948
Total off-balance sheet	$	1,221,630	$	572,577	$	954,967	$	121,860	$	160,383	$	9,114	$	3,040,531
Total Ending Balance:
Acceptable	$	2,317,516	$	816,817	$	1,144,009	$	158,626	$	142,855	$	10,062	$	4,589,885
Other assets especially mentioned ("OAEM") (2)	32,387		21,765		49,173		5,212		16,937		591		126,065
Substandard (2)	50,326		47,752		47,428		14,423		41,388		222		201,539
Total	$	2,400,229	$	886,334	$	1,240,610	$	178,261	$	201,180	$	10,875	$	4,917,489
Commodity analysis of past due loans (1)
On-balance sheet	$	4,516	$	16,000	$	3,853	$	2,981	$	—	$	119	$	27,469
Off-balance sheet	3,423		217		2,376		437		—		—		6,453
90-days or more past due	$	7,939	$	16,217	$	6,229	$	3,418	$	—	$	119	$	33,922

(1) Amounts represent unpaid principal balance of risk-rated loans, which is the basis Farmer Mac uses to analyze its portfolio, and recorded investment of past due loans. 

(2) Assets in the OAEM category generally have potential weaknesses due to performance issues but are currently considered to be adequately secured.  Substandard assets 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, 2012
	Crops		Permanent Plantings		Livestock		Part-time Farm		Ag. Storage and Processing (including ethanol facilities)		Other		Total
	(in thousands)
Credit risk profile by internally assigned grade (1)
On-balance sheet:
Acceptable	$	947,097	$	226,253	$	252,525	$	48,156	$	11,972	$	—	$	1,486,003
Other assets especially mentioned ("OAEM") (2)	30,466		33,794		16,344		2,131		19,981		—		102,716
Substandard (2)	22,003		29,647		11,511		12,660		15,196		115		91,132
Total on-balance sheet	$	999,566	$	289,694	$	280,380	$	62,947	$	47,149	$	115	$	1,679,851
Off-Balance Sheet
Acceptable	$	1,143,790	$	567,064	$	922,254	$	130,557	$	114,983	$	10,287	$	2,888,935
Other assets especially mentioned ("OAEM") (2)	10,459		5,068		40,410		3,220		23,372		592		83,121
Substandard (2)	17,534		20,706		44,697		5,141		6,282		1,022		95,382
Total off-balance sheet	$	1,171,783	$	592,838	$	1,007,361	$	138,918	$	144,637	$	11,901	$	3,067,438
Total Ending Balance:
Acceptable	$	2,090,887	$	793,317	$	1,174,779	$	178,713	$	126,955	$	10,287	$	4,374,938
Other assets especially mentioned ("OAEM") (2)	40,925		38,862		56,754		5,351		43,353		592		185,837
Substandard (2)	39,537		50,353		56,208		17,801		21,478		1,137		186,514
Total	$	2,171,349	$	882,532	$	1,287,741	$	201,865	$	191,786	$	12,016	$	4,747,289
Commodity analysis of past due loans (1)
On-balance sheet	$	3,971	$	10,756	$	4,389	$	6,022	$	4,337	$	117	$	29,592
Off-balance sheet	697		45		2,833		96		—		—		3,671
90-days or more past due	$	4,668	$	10,801	$	7,222	$	6,118	$	4,337	$	117	$	33,263

(1) Amounts represent unpaid principal balance of risk-rated loans, which is the basis Farmer Mac uses to analyze its portfolio, and recorded investment of past due loans.  

(2) Assets in the OAEM category generally have potential weaknesses due to performance issues but are currently considered to be adequately secured.  Substandard assets have a well-defined weakness or weaknesses and there is a distinct possibility that some loss will be sustained if deficiencies are not corrected.

Schedules of Concentration of Risk, by Risk Factor [Table Text Block]

The following table sets forth the geographic and commodity/collateral diversification, as well as the range of original loan-to-value ratios, for all Farm & Ranch loans held and loans underlying Farm & Ranch Guaranteed Securities (excluding AgVantage securities) and LTSPCs as of June 30, 2013 and December 31, 2012:

Table 5.10

	June 30, 2013		December 31, 2012
	(in thousands)
By commodity/collateral type:
Crops	$	2,400,229	$	2,171,349
Permanent plantings	886,334		882,532
Livestock	1,240,610		1,287,741
Part-time farm	178,261		201,865
Ag. Storage and Processing (including ethanol facilities)	201,180		191,786
Other	10,875		12,016
Total	$	4,917,489	$	4,747,289
By geographic region (1):
Northwest	$	474,848	$	840,693
Southwest	1,756,072		1,781,822
Mid-North	1,516,086		989,903
Mid-South	594,176		504,914
Northeast	242,596		261,756
Southeast	333,711		368,201
Total	$	4,917,489	$	4,747,289
By original loan-to-value ratio:
0.00% to 40.00%	$	1,265,037	$	1,338,715
40.01% to 50.00%	997,333		851,980
50.01% to 60.00%	1,374,718		1,296,225
60.01% to 70.00%	1,121,641		1,091,427
70.01% to 80.00%	116,567		122,259
80.01% to 90.00%	42,193		46,683
Total	$	4,917,489	$	4,747,289

(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).