RELATED PARTY TRANSACTIONS

Farmer Mac considers an entity to be a related party if (1) the entity holds at least 5 percent of a class of Farmer Mac voting common stock or (2) the institution has an affiliation with a Farmer Mac director and conducts material business with Farmer Mac. 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 Farm Credit System may hold Farmer Mac's Class B voting common stock. Farmer Mac's statutory charter also provides that Class A stockholders elect five members of Farmer Mac's 15-member board of directors and that Class B stockholders elect five members of the board of directors. Additionally, in order to participate in the Farm & Ranch program, a financial institution must own a requisite amount of Farmer Mac's common stock, based on the size and type of institution. As a result of these requirements, Farmer Mac conducts business with related parties in the normal course of Farmer Mac's business. All related party transactions were conducted with terms and conditions comparable to those available to any other participant in Farmer Mac's lines of business not related to Farmer Mac.

Zions First National Bank:

Farmer Mac considers Zions First National Bank and its affiliates ("Zions") a related party due to the ownership by Zions of approximately 31.2 percent of Class A voting common stock. The following transactions occurred between Farmer Mac and Zions during 2016, 2015, and 2014:

Table 3.1



	For the Year Ended December 31,
	2016		2015		2014
	(in thousands)
Unpaid Principal Balance:
Purchases:
Loans	$	153,140	$	178,890	$	155,808
USDA Securities	16,600		13,718		42,637
On-balance sheet AgVantage Securities	—		—		50,237
Sales of Farmer Mac Guaranteed Securities	273,586		255,338		147,234

The purchases of loans from Zions under the Farm & Ranch line of business represented approximately 15.9 percent, 23.9 percent, and 22.3 percent of Farm & Ranch loan purchases for the years ended December 31, 2016, 2015, and 2014, respectively, and 11.2 percent, 15.2 percent and 14.6 percent, respectively, of total new Farm & Ranch business volume. The purchases of USDA Securities from Zions under the USDA Guarantees line of business represented approximately 3.4 percent, 3.6 percent, and 12.4 percent of purchases in that line of business for the years ended December 31, 2016, 2015, and 2014, respectively. Outstanding Farm & Ranch loans, USDA Securities, and AgVantage securities purchased from Zions represented 5.3 percent and 5.7 percent, respectively, of Farmer Mac's outstanding business volume as of December 31, 2016 and 2015.

Zions retained servicing fees of $9.9 million, $9.3 million, and $8.4 million in 2016, 2015, and 2014, respectively, for its work as a Farmer Mac servicer.

Zions acted as dealer for $5.0 million par value of Farmer Mac medium term notes during 2014 and none for 2016 and 2015. The related commissions Farmer Mac paid to Zions for these services were immaterial.

National Rural Utilities Cooperative Financial Corporation:

Farmer Mac considers the National Rural Utilities Cooperative Financial Corporation ("CFC") a related party due to its ownership of approximately 7.9 percent of Class A voting common stock. The following transactions occurred between Farmer Mac and CFC during 2016, 2015, and 2014:

Table 3.2



Farmer Mac Loan Purchases and Guarantees
	For the Year Ended December 31,
	2016		2015		2014
	(in thousands)
Unpaid Principal Balance:
Loans	$	50,491	$	108,337	$	75,500
On-balance sheet AgVantage Securities	250,000		380,000		820,775
Off-balance sheet AgVantage Securities	—		—		7,190
Off-balance sheet revolving floating rate AgVantage facility	—		300,000		—
LTSPCs	441,404		522,262		—
Total purchases and guarantees	$	741,895	$	1,310,599	$	903,465

The transactions with CFC represented 100 percent of Farmer Mac's volume of loan purchases and LTSPC transactions under the Rural Utilities line of business for 2016, 2015, and 2014, represented 11.9 percent, 65.2 percent, and 64.7 percent of AgVantage securities volume under the Institutional Credit line of business for 2016, 2015, and 2014, respectively, and represented 16.7 percent, 40.6 percent, and 32.7 percent of total purchases, guarantees, and LTSPCs for 2016, 2015, and 2014, respectively. Of Farmer Mac's total outstanding business volume as of December 31, 2016 and 2015, Rural Utilities loans, loans under LTSPCs, and AgVantage securities issued by CFC represented 25.7 percent and 24.6 percent, respectively. For the years ended December 31, 2016, 2015, and 2014, Farmer Mac earned guarantee fees of $0.1 million.

Farmer Mac had interest receivable of $3.2 million and $1.8 million as of December 31, 2016 and 2015, respectively, and earned interest income of $27.6 million, $15.9 million, and $15.8 million during 2016, 2015, and 2014, respectively, related to its AgVantage transactions with CFC.

As of December 31, 2016 and 2015 Farmer Mac had $0.2 million and $0.1 million, respectively of commitment fees receivable from CFC and earned commitment fees of $2.0 million and $0.5 million, respectively for 2016 and 2015. Farmer Mac earned no commitment fees from CFC during 2014.

CFC retained servicing fees of $3.3 million, $3.3 million, and $3.4 million in 2016, 2015, and 2014, respectively, for its work as a Farmer Mac central servicer.

AgFirst Farm Credit Bank:

Farmer Mac has a related party relationship with AgFirst Farm Credit Bank ("AgFirst") resulting from AgFirst being a holder of approximately 16.8 percent of Farmer Mac Class B voting common stock.

AgFirst entered into $36.4 million, $28.5 million and $19.7 million of LTSPC transactions in 2016, 2015, and 2014, respectively, and the aggregate balance of LTSPCs outstanding as of December 31, 2016 and 2015 was $331.3 million and $320.7 million, respectively. Farmer Mac received from AgFirst $1.1 million, $1.2 million, and $1.3 million in commitment fees in 2016, 2015, and 2014, respectively, and had $0.1 million of commitment fees receivable as of both December 31, 2016 and 2015.

AgFirst owns certain securities backed by rural housing loans for which Farmer Mac is the second-loss guarantor for the last ten percent. As of December 31, 2016 and 2015, the outstanding balance of those securities owned by AgFirst was $19.7 million and $24.6 million, respectively. Farmer Mac received guarantee fees of $45,000, $0.1 million, and $0.1 million in 2016, 2015, and 2014, respectively, on those securities.

Farm Credit Bank of Texas:

Farmer Mac has a related party relationship with Farm Credit Bank of Texas resulting from the bank being a holder of approximately 7.7 percent of Farmer Mac Class B voting common stock and because a member of Farmer Mac's board of directors has an affiliation with that entity. Farmer Mac received from Farm Credit Bank of Texas commitment fees of $1.1 million, $0.7 million, and $0.6 million in 2016, 2015, and 2014, respectively. The aggregate amount of LTSPCs outstanding with Farm Credit Bank of Texas as of December 31, 2016 and 2015 was $237.9 million and $253.0 million, respectively. In 2016, 2015, and 2014, Farm Credit Bank of Texas retained $0.3 million, $0.3 million, and $0.4 million, respectively, in servicing fees for its work as a Farmer Mac central servicer.

Other Related Party Transactions:

Farmer Mac purchased $24.7 million, $21.1 million, and $35.1 million in loans from First Dakota National Bank in 2016, 2015, and 2014, respectively. Farmer Mac entered into, $7.8 million of new LTSPCs in 2015, and none in 2016 and 2014, respectively with First Dakota National Bank. First Dakota National Bank retained servicing fees of $1.1 million, $1.0 million, and $0.8 million in 2016, 2015, and 2014, respectively, for its work as a Farmer Mac servicer. Farmer Mac purchased $1.3 million, $2.1 million, and $4.5 million in USDA Securities from Bath State Bank in 2016, 2015, and 2014, respectively. These institutions had a related party relationship with Farmer Mac because a member of Farmer Mac's board of directors is affiliated with each of those entities.

Farmer Mac had a related party relationship with AgGeorgia during 2014 because a former member of Farmer Mac's board of directors had an affiliation with that entity while he served on Farmer Mac's board of directors during 2014. Effective June 2014, AgGeorgia was no longer a related party because this individual ceased his service on Farmer Mac's board of directors at that time. Amounts, where presented in 2014, represent activity for the entire year. Farmer Mac entered into $20.2 million of new LTSPCs with AgGeorgia and received $0.1 million of commitment fees during 2014.

Farmer Mac owned $70.0 million of subordinated debt issued by CoBank as of December 31, 2016 and 2015, respectively. Farmer Mac has a related party relationship with CoBank because CoBank is a major holder (32.6 percent) of Farmer Mac Class B voting common stock and because a member of Farmer Mac's board of directors has an affiliation with that entity.