Fair Value Disclosures - (Tables)

6 Months Ended

Jun. 30, 2014

Fair Value Disclosures [Abstract]

Fair Value Measurements, Recurring and Nonrecurring [Table Text Block]

The following tables present information about Farmer Mac's assets and liabilities measured at fair value on a recurring and nonrecurring basis as of June 30, 2014 and December 31, 2013, respectively, and indicate the fair value hierarchy of the valuation techniques used by Farmer Mac to determine such fair value:

Table 8.1

Assets and Liabilities Measured at Fair Value as of June 30, 2014
	Level 1		Level 2		Level 3		Total
	(in thousands)
Recurring:
Assets:
Investment Securities:
Available-for-sale:
Floating rate auction-rate certificates backed by Government guaranteed student loans	$	—	$	—	$	54,976	$	54,976
Floating rate asset-backed securities	—		120,244		—		120,244
Floating rate corporate debt securities	—		26,688		—		26,688
Fixed rate corporate debt securities	—		55,170		—		55,170
Floating rate Government/GSE guaranteed mortgage-backed securities	—		626,349		195		626,544
Fixed rate GSE guaranteed mortgage-backed securities	—		8,460		—		8,460
Floating rate GSE subordinated debt	—		63,385		—		63,385
Fixed rate GSE preferred stock	—		82,425		—		82,425
Fixed rate taxable municipal bonds	—		11,978		—		11,978
Fixed rate senior agency debt	—		200,100		—		200,100
Floating rate U.S. Treasuries	74,998		—		—		74,998
Fixed rate U.S. Treasuries	990,995		—		—		990,995
Total available-for-sale	1,065,993		1,194,799		55,171		2,315,963
Trading:
Floating rate asset-backed securities	—		—		880		880
Total trading	—		—		880		880
Total Investment Securities	1,065,993		1,194,799		56,051		2,316,843
Farmer Mac Guaranteed Securities:
Available-for-sale:
AgVantage	—		—		3,416,512		3,416,512
Farmer Mac Guaranteed USDA Securities	—		—		21,044		21,044
Total Farmer Mac Guaranteed Securities	—		—		3,437,556		3,437,556
USDA Securities:
Available-for-sale	—		—		1,636,930		1,636,930
Trading	—		—		46,099		46,099
Total USDA Securities	—		—		1,683,029		1,683,029
Financial derivatives	—		7,318		—		7,318
Total Assets at fair value	$	1,065,993	$	1,202,117	$	5,176,636	$	7,444,746
Liabilities:
Securities sold, not yet purchased
Fixed rate U.S. Treasuries	$	1,673,532	$	—	$	—	$	1,673,532
Financial derivatives	62		78,234		—		78,296
Total Liabilities at fair value	$	1,673,594	$	78,234	$	—	$	1,751,828
Nonrecurring:
Assets:
Loans held for investment	$	—	$	—	$	5,003	$	5,003
REO	—		—		762		762
Total Nonrecurring Assets at fair value	$	—	$	—	$	5,765	$	5,765

Assets and Liabilities Measured at Fair Value as of December 31, 2013
	Level 1		Level 2		Level 3		Total
	(in thousands)
Recurring:
Assets:
Investment Securities:
Available-for-sale:
Floating rate auction-rate certificates backed by Government guaranteed student loans	$	—	$	—	$	65,285	$	65,285
Floating rate asset-backed securities	—		166,104		—		166,104
Floating rate corporate debt securities	—		109,769		—		109,769
Fixed rate corporate debt	—		55,141		—		55,141
Floating rate Government/GSE guaranteed mortgage-backed securities	—		621,064		205		621,269
Fixed rate GSE guaranteed mortgage-backed securities	—		8,657		—		8,657
Floating rate GSE subordinated debt	—		63,385		—		63,385
Fixed rate GSE preferred stock	—		83,161		—		83,161
Fixed rate taxable municipal bonds	—		30,681		—		30,681
Fixed rate senior agency debt	—		524,062		—		524,062
Fixed rate U.S. Treasuries	755,633		—		—		755,633
Total available-for-sale	755,633		1,662,024		65,490		2,483,147
Trading:
Floating rate asset-backed securities	—		—		928		928
Total trading	—		—		928		928
Total Investment Securities	755,633		1,662,024		66,418		2,484,075
Farmer Mac Guaranteed Securities:
Available-for-sale:
AgVantage	—		—		5,070,366		5,070,366
Farmer Mac Guaranteed USDA Securities	—		—		21,234		21,234
Total Farmer Mac Guaranteed Securities	—		—		5,091,600		5,091,600
USDA Securities:
Available-for-sale	—		—		1,553,669		1,553,669
Trading	—		—		58,344		58,344
Total USDA Securities	—		—		1,612,013		1,612,013
Financial derivatives	—		19,718		—		19,718
Total Assets at fair value	$	755,633	$	1,681,742	$	6,770,031	$	9,207,406
Liabilities:
Financial derivatives	$	1	$	75,472	$	235	$	75,708
Total Liabilities at fair value	$	1	$	75,472	$	235	$	75,708
Nonrecurring:
Assets:
Loans held for investment	—		—		4,420		4,420
REO	—		—		1,818		1,818
Total Nonrecurring Assets at fair value	$	—	$	—	$	6,238	$	6,238

Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block]

The following tables present additional information about assets and liabilities measured at fair value on a recurring basis for which Farmer Mac has used significant unobservable inputs to determine fair value. Net transfers in and/or out of level 3 are based on the fair values of the assets and liabilities as of the beginning of the reporting period.

Table 8.2

Level 3 Assets and Liabilities Measured at Fair Value for the Three Months Ended June 30, 2014
	Beginning Balance			Purchases		Sales			Settlements			Realized and Unrealized Gains/(Losses) included in Income			Unrealized Gains/(Losses) included in Other Comprehen-sive Income			Ending Balance
	(in thousands)
Recurring:
Assets:
Investment Securities:
Available-for-sale:
Floating rate auction-rate certificates backed by Government guaranteed student loans	$	64,963		$	—	$	(12,125	)	$	—		$	(375	)	$	2,513		$	54,976
Floating rate Government/GSE guaranteed mortgage-backed securities	203			—		—			(7		)	—			(1		)	195
Total available-for-sale	65,166			—		(12,125		)	(7		)	(375		)	2,512			55,171
Trading:
Floating rate asset-backed securities (1)	923			—		—			(131		)	88			—			880
Total trading	923			—		—			(131		)	88			—			880
Total Investment Securities	66,089			—		(12,125		)	(138		)	(287		)	2,512			56,051
Farmer Mac Guaranteed Securities:
Available-for-sale:
AgVantage	3,467,655			295,775		—			(356,319		)	3,818			5,583			3,416,512
Farmer Mac Guaranteed USDA Securities	21,608			—		—			(191		)	—			(373		)	21,044
Total Farmer Mac Guaranteed Securities	3,489,263			295,775		—			(356,510		)	3,818			5,210			3,437,556
USDA Securities:
Available-for-sale	1,600,659			90,785		—			(59,640		)	—			5,126			1,636,930
Trading (2)	51,102			—		—			(4,843		)	(160		)	—			46,099
Total USDA Securities	1,651,761			90,785		—			(64,483		)	(160		)	5,126			1,683,029
Total Assets at fair value	$	5,207,113		$	386,560	$	(12,125	)	$	(421,131	)	$	3,371		$	12,848		$	5,176,636
Liabilities:
Financial derivatives	$	(161	)	$	—	$	—		$	—		$	161		$	—		$	—
Total Liabilities at fair value	$	(161	)	$	—	$	—		$	—		$	161		$	—		$	—

(1) Unrealized gains are attributable to assets still held as of June 30, 2014 and are recorded in "Gains/(losses) on trading securities."

(2) Includes immaterial unrealized gains attributable to assets still held as of June 30, 2014 that are recorded in "Gains/(losses) on trading securities."

Level 3 Assets and Liabilities Measured at Fair Value for the Three Months Ended June 30, 2013
	Beginning Balance			Purchases		Sales		Settlements			Realized and Unrealized Gains/ (Losses) included in Income			Unrealized Gains/(Losses) included in Other Comprehen-sive Income			Ending Balance
	(in thousands)
Recurring:
Assets:
Investment Securities:
Available-for-sale:
Floating rate auction-rate certificates backed by Government guaranteed student loans	$	65,213		$	—	$	—	$	—		$	—		$	(125	)	$	65,088
Floating rate Government/GSE guaranteed mortgage-backed securities	233			—		—		(9		)	—			(2		)	222
Total available-for-sale	65,446			—		—		(9		)	—			(127		)	65,310
Trading:
Floating rate asset-backed securities (1)	1,129			—		—		(186		)	121			—			1,064
Total trading	1,129			—		—		(186		)	121			—			1,064
Total Investment Securities	66,575			—		—		(195		)	121			(127		)	66,374
Farmer Mac Guaranteed Securities:
Available-for-sale:
AgVantage	5,072,882			200,000		—		(206,519		)	(14,730		)	(18,574		)	5,033,059
Farmer Mac Guaranteed USDA Securities	27,198			—		—		(515		)	—			(889		)	25,794
Total Farmer Mac Guaranteed Securities	5,100,080			200,000		—		(207,034		)	(14,730		)	(19,463		)	5,058,853
USDA Securities:
Available-for-sale	1,569,160			110,897		—		(76,364		)	—			(59,929		)	1,543,764
Trading (2)	87,271			—		—		(13,231		)	(448		)	—			73,592
Total USDA Securities	1,656,431			110,897		—		(89,595		)	(448		)	(59,929		)	1,617,356
Total Assets at fair value	$	6,823,086		$	310,897	$	—	$	(296,824	)	$	(15,057	)	$	(79,519	)	$	6,742,583
Liabilities:
Financial derivatives (3)	$	(532	)	$	—	$	—	$	—		$	142		$	—		$	(390	)
Total Liabilities at fair value	$	(532	)	$	—	$	—	$	—		$	142		$	—		$	(390	)

(1) Unrealized gains are attributable to assets still held as of June 30, 2013 and are recorded in "Gains/(losses) on trading securities."

(2) Includes unrealized losses of $0.3 million attributable to assets still held as of June 30, 2013 that are recorded in "Gains/(losses) on trading securities."

(3) Unrealized gains are attributable to liabilities still held as of June 30, 2013 and are recorded in "(Losses)/gains on financial derivatives and hedging activities."

Level 3 Assets and Liabilities Measured at Fair Value for the Six Months Ended June 30, 2014
	Beginning Balance			Purchases		Sales			Settlements			Realized and Unrealized Gains/(Losses) included in Income			Unrealized Gains/(Losses) included in Other Comprehen-sive Income		Transfers Out			Ending Balance
	(in thousands)
Recurring:
Assets:
Investment Securities:
Available-for-sale:
Floating rate auction-rate certificates backed by Government guaranteed student loans	$	65,285		$	—	$	(12,125	)	$	—		$	(375	)	$	2,191	$	—		$	54,976
Floating rate Government/GSE guaranteed mortgage-backed securities	205			—		—			(11		)	—			1		—			195
Total available-for-sale	65,490			—		(12,125		)	(11		)	(375		)	2,192		—			55,171
Trading:
Floating rate asset-backed securities (1)	928			—		—			(414		)	366			—		—			880
Total trading	928			—		—			(414		)	366			—		—			880
Total Investment Securities	66,418			—		(12,125		)	(425		)	(9		)	2,192		—			56,051
Farmer Mac Guaranteed Securities:
Available-for-sale:
AgVantage	5,070,366			465,775		—			(532,588		)	6,568			18,477		(1,612,086		)	3,416,512
Farmer Mac Guaranteed USDA Securities	21,234			—		—			(362		)	—			172		—			21,044
Total Farmer Mac Guaranteed Securities	5,091,600			465,775		—			(532,950		)	6,568			18,649		(1,612,086		)	3,437,556
USDA Securities:
Available-for-sale	1,553,669			158,769		—			(120,095		)	—			44,587		—			1,636,930
Trading (2)	58,344			—		—			(12,462		)	217			—		—			46,099
Total USDA Securities	1,612,013			158,769		—			(132,557		)	217			44,587		—			1,683,029
Total Assets at fair value	$	6,770,031		$	624,544	$	(12,125	)	$	(665,932	)	$	6,776		$	65,428	$	(1,612,086	)	$	5,176,636
Liabilities:
Financial derivatives	$	(235	)	$	—	$	—		$	—		$	235		$	—	$	—		$	—
Total Liabilities at fair value	$	(235	)	$	—	$	—		$	—		$	235		$	—	$	—		$	—

(1) Unrealized gains are attributable to assets still held as of June 30, 2014 and are recorded in "Gains/(losses) on trading securities."

(2) Includes unrealized gains of $0.7 million attributable to assets still held as of June 30, 2014 that are recorded in "Gains/(losses) on trading securities."

Level 3 Assets and Liabilities Measured at Fair Value for the Six Months Ended June 30, 2013
	Beginning Balance			Purchases		Sales		Settlements			Realized and Unrealized Gains/ (Losses) included in Income			Unrealized Gains/(Losses) included in Other Comprehen-sive Income			Ending Balance
	(in thousands)
Recurring:
Assets:
Investment Securities:
Available-for-sale:
Floating rate auction-rate certificates backed by Government guaranteed student loans	$	63,159		$	—	$	—	$	—		$	—		$	1,929		$	65,088
Floating rate Government/GSE guaranteed mortgage-backed securities	—			233		—		(9		)	—			(2		)	222
Total available-for-sale	63,159			233		—		(9		)	—			1,927			65,310
Trading:
Floating rate asset-backed securities (1)	1,247			—		—		(500		)	317			—			1,064
Total trading	1,247			—		—		(500		)	317			—			1,064
Total Investment Securities	64,406			233		—		(509		)	317			1,927			66,374
Farmer Mac Guaranteed Securities:
Available-for-sale:
AgVantage	4,739,577			625,000		—		(284,452		)	(17,868		)	(29,198		)	5,033,059
Farmer Mac Guaranteed USDA Securities	26,681			—		—		(898		)	—			11			25,794
Total Farmer Mac Guaranteed Securities	4,766,258			625,000		—		(285,350		)	(17,868		)	(29,187		)	5,058,853
USDA Securities:
Available-for-sale	1,486,595			233,084		—		(145,566		)	—			(30,349		)	1,543,764
Trading (2)	104,188			—		—		(30,162		)	(434		)	—			73,592
Total USDA Securities	1,590,783			233,084		—		(175,728		)	(434		)	(30,349		)	1,617,356
Total Assets at fair value	$	6,421,447		$	858,317	$	—	$	(461,587	)	$	(17,985	)	$	(57,609	)	$	6,742,583
Liabilities:
Financial derivatives (3)	$	(691	)	$	—	$	—	$	—		$	301		$	—		$	(390	)
Total Liabilities at fair value	$	(691	)	$	—	$	—	$	—		$	301		$	—		$	(390	)

(1) Unrealized gains are attributable to assets still held as of June 30, 2013 and are recorded in "Gains/(losses) on trading securities."

(2) Includes unrealized losses of $0.1 million attributable to assets still held as of June 30, 2013 that are recorded in "Gains/(losses) on trading securities."

(3) Unrealized gains are attributable to liabilities still held as of June 30, 2013 and are recorded in "(Losses)/gains on financial derivatives and hedging activities."

^[1],[2],[3]

Fair Value Inputs, Assets and Liabilities, Quantitative Information [Table Text Block]

The following tables present additional information about the significant unobservable inputs, such as discount rates and constant prepayment rates ("CPR"), used in the fair value measurements categorized in level 3 of the fair value hierarchy as of June 30, 2014 and December 31, 2013.

Table 8.3

	As of June 30, 2014
Financial Instruments	Fair Value		Valuation Technique	Unobservable Input	Range (Weighted-Average)
	(in thousands)
Assets:
Investment securities:
Floating rate auction-rate certificates backed by Government guaranteed student loans	$	54,976	Indicative bids	Range of broker quotes	82.0% - 96.0% (89.3%)
Floating rate asset-backed securities	$	880	Discounted cash flow	Discount rate	12.2% - 21.5% (16.8%)
				CPR	10%
Floating rate Government/GSE guaranteed mortgage-backed securities	$	195	Discounted cash flow	Discount rate	1.8% - 1.8% (1.8%)
				CPR	7%
Farmer Mac Guaranteed Securities:
AgVantage	$	3,416,512	Discounted cash flow	Discount rate	0.8% - 2.2% (1.4%)
Farmer Mac Guaranteed USDA Securities	$	21,044	Discounted cash flow	Discount rate	0.8% - 3.3% (1.9%)
				CPR	8% - 17% (14%)
USDA Securities	$	1,683,029	Discounted cash flow	Discount rate	1.1% - 5.2% (3.2%)
				CPR	0% - 18% (7%)

	As of December 31, 2013
Financial Instruments	Fair Value		Valuation Technique	Unobservable Input	Range (Weighted-Average)
	(in thousands)
Assets:
Investment securities:
Floating rate auction-rate certificates backed by Government guaranteed student loans	$	65,285	Indicative bids	Range of broker quotes	82.0% - 92.0% (88.1%)
Floating rate asset-backed securities	$	928	Discounted cash flow	Discount rate	13.0% - 22.5% (17.7%)
				CPR	10%
Floating rate Government/GSE guaranteed mortgage-backed securities	$	205	Discounted cash flow	Discount rate	1.8% - 1.8% (1.8%)
				CPR	6%
Farmer Mac Guaranteed Securities:
AgVantage	$	5,070,366	Discounted cash flow	Discount rate	0.9% - 3.6% (1.8%)
Farmer Mac Guaranteed USDA Securities	$	21,234	Discounted cash flow	Discount rate	0.9% - 3.2% (1.9%)
				CPR	7% - 14% (11%)
USDA Securities	$	1,612,013	Discounted cash flow	Discount rate	1.2% - 5.3% (3.4%)
				CPR	0% - 23% (5%)
Liabilities:
Financial Derivatives:
Basis swaps	$	235	Discounted cash flow	Discount rate	0.7% - 2.3% (1.3%)
				CPR	10% - 11% (10%)

Fair Value, by Balance Sheet Grouping [Table Text Block]

Disclosures on Fair Value of Financial Instruments

The following table sets forth the estimated fair values and carrying values for financial assets, liabilities, and guarantees and commitments as of June 30, 2014 and December 31, 2013:

Table 8.4

	As of June 30, 2014				As of December 31, 2013
	Fair Value		Carrying Amount		Fair Value		Carrying Amount
	(in thousands)
Financial assets:
Cash and cash equivalents	$	384,123	$	384,123	$	749,313	$	749,313
Securities purchased under agreements to resell	1,640,184		1,640,686		—		—
Investment securities	2,316,843		2,316,843		2,484,075		2,484,075
Farmer Mac Guaranteed Securities	5,097,604		5,094,010		5,091,600		5,091,600
USDA Securities	1,683,029		1,683,029		1,612,013		1,612,013
Loans	3,363,595		3,334,417		3,138,932		3,193,248
Financial derivatives	7,318		7,318		19,718		19,718
Guarantee and commitment fees receivable:
LTSPCs	31,621		28,038		33,807		27,244
Farmer Mac Guaranteed Securities	16,209		15,440		18,470		16,660
Financial liabilities:
Notes payable:
Due within one year	6,264,106		6,265,018		7,353,356		7,338,781
Due after one year	5,455,927		5,401,118		4,977,942		5,001,169
Securities sold, not yet purchased	1,673,532		1,673,532		—		—
Debt securities of consolidated trusts held by third parties	373,514		377,518		257,512		261,760
Financial derivatives	78,296		78,296		75,708		75,708
Guarantee and commitment obligations:
LTSPCs	30,676		27,092		32,856		26,293
Farmer Mac Guaranteed Securities	13,180		12,411		15,185		13,374

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