8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

________________

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported): May 2, 2019

FEDERAL AGRICULTURAL MORTGAGE CORPORATION

(Exact name of registrant as specified in its charter)

Federally chartered instrumentality of the United States	001-14951	52-1578738
(State or Other Jurisdiction of Incorporation)	(Commission File Number)	(IRS Employer Identification No.)
1999 K Street, N.W., 4th Floor, Washington D.C.		20006
(Address of Principal Executive Offices)		(Zip Code)

Registrant’s telephone number, including area code (202) 872-7700

No change

(Former name or former address, if changed since last report) 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2). Emerging growth company ¨

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading symbol	Exchange on which registered
Class A voting common stock	AGM.A	New York Stock Exchange
Class C non-voting common stock	AGM	New York Stock Exchange
5.875% Non-Cumulative Preferred Stock, Series A	AGM.PRA	New York Stock Exchange
6.875% Non-Cumulative Preferred Stock, Series B	AGM.PRB	New York Stock Exchange
6.000% Fixed-to-Floating Rate Non-Cumulative Preferred Stock, Series C	AGM.PRC	New York Stock Exchange

Item 2.02    Results of Operations and Financial Condition.

On May 2, 2019, the Federal Agricultural Mortgage Corporation (“Farmer Mac”) issued a press release to announce (1) its financial results for the fiscal quarter ended March 31, 2019 and (2) a conference call to discuss those results and Farmer Mac’s Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 2019. A copy of the press release is attached as Exhibit 99.1 and is incorporated by reference into this report. All references to www.farmermac.com in Exhibit 99.1 are inactive textual references only, and the information contained on that website is not incorporated by reference into this report.

The information furnished in this Item 2.02, including Exhibit 99.1, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that Section, nor will any of such information or Exhibit be deemed incorporated by reference into any filing under the Exchange Act or the Securities Act of 1933, as amended (the “Securities Act”), except as shall be expressly set forth by specific reference in such filing.

Item 7.01    Regulation FD Disclosure.

On May 2, 2019, Farmer Mac posted an investor slide presentation for equity investors to its website at www.farmermac.com under the tab “Investors — Events and Presentations.” Farmer Mac expects to use the slide presentation in connection with future investor presentations to analysts and investors. The slide presentation is attached as Exhibit 99.2 and is incorporated by reference into this report. All references to www.farmermac.com in Exhibit 99.2 are inactive textual references only, and the information contained on that website is not incorporated by reference into this report.

The information furnished in this Item 7.01, including Exhibit 99.2, shall not be deemed “filed” for purposes of Section 18 of the Exchange Act, or otherwise subject to the liabilities of that Section, nor will any of such information or Exhibit be deemed incorporated by reference into any filing under the Exchange Act or the Securities Act, except as shall be expressly set forth by specific reference in such filing.

Item 9.01    Financial Statements and Exhibits.

(d)    Exhibits

99.1Press Release dated May 2, 2019

99.2Equity investor slide presentation

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

FEDERAL AGRICULTURAL MORTGAGE CORPORATION                    

By: /s/ Stephen P. Mullery            

Name: Stephen P. Mullery

Title: Executive Vice President – General Counsel

Dated: May 2, 2019

EX-99.1

Farmer Mac Reports First Quarter 2019 Results —

Grew Outstanding Business Volume $782 Million to $20.5 Billion

- Credit Quality Remains Favorable -

-

WASHINGTON, May 2, 2019 — The Federal Agricultural Mortgage Corporation (Farmer Mac; NYSE: AGM and AGM.A), the nation's largest secondary market provider that increases the availability and affordability of credit for the benefit of rural America, today announced its results for the fiscal quarter ended March 31, 2019.

First Quarter 2019 Highlights

• Added $1.7 billion of gross business volume, resulting in net growth of $782.4 million

◦ CoBank's transaction added $546.2 million

◦ CFC's new AgVantage bond added $325.0 million

• Net income attributable to common stockholders was $21.9 million, or $2.03 per diluted common share

• Core earnings, a non-GAAP measure grew to $22.2 million, or $2.06 per diluted common share

• Net interest income decreased $2.6 million from the prior year to $40.6 million

• Net effective spread, a non-GAAP measure, increased 5% from the prior year to $38.8 million

• 90-day delinquencies were 0.73% of the $7.2 billion Farm & Ranch portfolio as of March 31, 2019, compared to 0.69% as of March 31, 2018

• Authorization for our existing share repurchase program was increased to $10.0 million of outstanding Class C non-voting common stock

◦ Extended the term through March 2021

"Our returns to our common stockholders continue to lead those of other financials, our credit quality remains favorable, and our capital base is strong," said President and Chief Executive Officer Brad Nordholm. "We are evaluating all of our lines of business, our products, and how we go to market as a wholesaler in order to more efficiently deliver upon our mission. Notably, we recently created a new executive level position to head up our lines of business, and this new Chief Business Officer will start in about a week. From recent significant-sized transactions in the rural utility industry, to our new dividend policy, share buyback program and recent additions to key personnel, Farmer Mac is firing on all cylinders."

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First Quarter 2019 Results

Business Volume

During first quarter 2019, we added $1.7 billion of gross new business volume, compared to $1.4 billion in first quarter 2018. Specifically, we:

• purchased $825.4 million of AgVantage securities;

• purchased $546.2 million of Rural Utilities loans;

• purchased $203.2 million of newly originated Farm & Ranch loans;

• added $91.2 million of Farm & Ranch loans under LTSPCs;

• purchased $38.3 million of USDA Securities; and

• issued $18.9 million of Farmer Mac Guaranteed USDA Securities.

After $0.9 billion of maturities and principal paydowns on existing business during first quarter 2019, our outstanding business volume achieved a net increase of $782.4 million from December 31, 2018 to $20.5 billion as of March 31, 2019.

This increase was driven by net growth of $482.6 million and $349.0 million in the Rural Utilities and Institutional Credit lines of business, respectively. This net growth was partially offset by a net decrease of $30.8 million and $18.4 million in the USDA Guarantees and Farm & Ranch lines of business, respectively.

The net growth in our Rural Utilities line of business was primarily due to the purchase of a $546.2 million portfolio of participations in seasoned loans from CoBank. Because this transaction settled on February 19, 2019, it contributed less than half a quarter's worth of net effective spread in first quarter 2019. This was the first time we have purchased program assets in any of our lines of business from CoBank.

Within the Institutional Credit line of business, we experienced net business volume growth in AgVantage securities purchased from large counterparties of $333.8 million and net business volume growth purchased from smaller financial fund counterparties of $15.3 million. The net growth from our large counterparties was driven by the purchase of a new $325 million AgVantage security in the rural utilities industry. Because our purchase of this security settled on February 15, 2019, it contributed approximately a half quarter's worth of net effective spread in first quarter 2019.

Our Farm & Ranch line of business experienced a net decrease of $18.4 million. Based on our analysis of bank and FCS call report data, there was a decline in the growth rate of the overall agricultural mortgage market in 2018. Nevertheless, our net growth of 7.9% in Farm & Ranch loan purchases over the twelve months ended March 31, 2019 compared favorably to the 4.7% net growth of the overall agricultural mortgage loan market over the twelve months ended December 31, 2018.

Our USDA Guarantees line of business experienced a net decrease of $30.8 million in first quarter 2019. This decrease in growth reflects the impact of lower loan volume being processed through the USDA and the government shutdown during January 2019.

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Spreads

Net interest income was $40.6 millionfor first quarter 2019, a decrease of $2.6 million, as compared to $43.2 million in first quarter 2018. The year-over-year decrease was primarily driven by a $5.5 million net change in fair value on financial derivatives and hedged items in fair value hedge accounting relationships. This negative fair value change was partially offset by a $2.1 million increase in net interest income generated from new business volume. The overall net interest yield was 0.86% for first quarter 2019, compared to 0.98% for first quarter 2018.

Net effective spread, a non-GAAP measure, was $38.8 million in first quarter 2019, an increase of $1.7 million, as compared to $37.1 million in first quarter 2018. The year-over-year increase in net effective spread was primarily due to growth in outstanding business volume, which increased net effective spread by $2.1 million. This positive factor was partially offset by $0.5 million in increased LIBOR-based funding costs. In percentage terms, net effective spread was 0.89% in first quarter 2019, compared to 0.91% in first quarter 2018.

Earnings

Our net income attributable to common stockholders for first quarter 2019 was $21.9 million ($2.03 per diluted common share), compared to $22.5 million ($2.10 per diluted common share) in first quarter 2018. The $0.6 million year-over-year decrease in net income attributable to common stockholders was primarily driven by a $2.1 million after-tax decrease in net interest income and a $1.0 million after-tax increase in operating expenses. The increase in operating expenses was primarily due to increased headcount and continued investments in technology and business infrastructure to expand capacity and efficiency. The year-over-year negative factors were offset in part by a $2.8 million after-tax decrease in losses on undesignated financial derivatives.

Our non-GAAP core earnings for first quarter 2019 were $22.2 million ($2.06 per diluted common share), an increase of $0.4 million, as compared to $21.8 millionin first quarter 2018 (2.03 per diluted common share). The year-over-year increase in core earnings was primarily due to a $1.3 million after-tax increase in net effective spread. This year-over-year positive factor was partially offset by a $1.0 million after-tax increase in operating expenses. The increase in operating expenses was primarily due to increased headcount and continued investments in technology and business infrastructure to expand capacity and efficiency.

See "Use of Non-GAAP Measures" below for more information about core earnings, core earnings per share, and net effective spread and for reconciliations of the comparable GAAP measures to these non-GAAP measures.

Credit

Our overall credit quality as of March 31, 2019 declined modestly as compared to December 31, 2018, as our 90-day delinquencies and substandard assets both increased in dollars and as a percentage of the Farm & Ranch portfolio. However, Farmer Mac's 90-day delinquency rate and substandard asset rate each remained below Farmer Mac's historical averages. We experienced a release of $0.4 million from our total allowance for losses due to a decline in Farm & Ranch outstanding business volume and lower specific allowance amounts on $25 million in Farm & Ranch loans that we identified as impaired and individually evaluated. In first quarter 2018, we also released $0.4 million from our total allowance for losses.

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As of March 31, 2019, Farmer Mac's 90-day delinquencies were $52.4 million (0.73% of the Farm & Ranch portfolio), compared to $26.9 million (0.37%) as of December 31, 2018 and $47.6 million (0.69%) as of March 31, 2018. Consistent with prior years, higher delinquency levels are generally observed at the end of the first and third quarters due to the seasonality of payments in our loan portfolio that have annual (January 1st) and semi-annual (January 1st and July 1st) payment terms, which account for most of the loans in the Farm & Ranch portfolio.

As of March 31, 2019, Farmer Mac's substandard assets were $246.7 million (3.4% of the Farm & Ranch portfolio), compared to $232.7 million (3.2%) as of December 31, 2018 and $221.2 million (3.2%) as of March 31, 2018. Farmer Mac did not experience a significant change in the concentration of its substandard assets among commodities during first quarter 2019 as compared to December 31, 2018.

Farmer Mac's 90-day delinquencies rate and substandard assets rate during first quarter 2019 each remained below Farmer Mac's historical averages of 1.0% and 4.0%, respectively.

Capital

As of March 31, 2019, our core capital level was $742.0 million, which was $169.1 million above the minimum capital level required by our statutory charter.  As of December 31, 2018, our core capital level was $727.6 million, which was $182.6 million above the minimum capital requirement. Farmer Mac's Tier-1 capital ratio was 13.2% as of March 31, 2019, compared to 13.4% as of December 31, 2018. The modest decrease in capital measures this quarter was due to growth in our outstanding business volume.

Share Repurchase Program

On March 14, 2019, Farmer Mac's board of directors modified the terms of Farmer Mac's existing share repurchase program by increasing the authorization for the repurchase of up to $10.0 million of Farmer Mac's outstanding Class C common stock and extending the term of the program through March 2021. Farmer Mac intends to repurchase shares only when it views repurchases as both highly accretive and consistent with its strategic objectives. As of March 31, 2019, Farmer Mac had repurchased approximately 668,000 shares of its Class C common stock at a cost of $19.6 million under the share repurchase program, which originally authorized the repurchase of up to $25.0 million of Class C common stock, but has not repurchased any shares since first quarter 2016.

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Earnings Conference Call Information

The conference call to discuss Farmer Mac's first quarter 2019 financial results will be held beginning at 11:00 a.m. eastern time on Thursday, May 2, 2019 and can be accessed by telephone or live webcast as follows:

Telephone (Domestic): (888) 346-2616

Telephone (International): (412) 902-4254

Webcast: https://www.farmermac.com/investors/events-presentations/

Presentation materials to be referenced during the call will be posted on the webpage that can be accessed by clicking on the link noted above. When dialing in to the call, please ask for the "Farmer Mac Earnings Conference Call." The call can be heard live and will also be available for replay on Farmer Mac’s website for two weeks following the conclusion of the call.

More complete information about Farmer Mac's performance for first quarter 2019 is in Farmer Mac's Quarterly Report on Form 10-Q for the period ended March 31, 2019 filed today with the SEC.

Use of Non-GAAP Measures

In the accompanying analysis of its financial information, 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 substitute for, or as more important than, the related financial information prepared in accordance with GAAP.

Core earnings and core earnings per share principally differ from net income attributable to common stockholders and earnings per common share, respectively, by excluding 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.

Core earnings and core earnings per share also differ from net income attributable to common stockholders and earnings per common share, respectively, by excluding specified infrequent or unusual transactions that Farmer Mac believes are not indicative of future operating results and that may not reflect the trends and economic financial performance of Farmer Mac's core business.

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 these assets. Net effective spread differs from net interest income and net interest yield because it excludes: (1) the amortization of premiums and discounts on assets consolidated at fair value that are amortized as adjustments to yield in interest income over the contractual or estimated remaining lives of the underlying assets; (2) interest income and interest expense related to consolidated trusts with beneficial interests owned by third parties, which are presented on Farmer Mac's consolidated balance sheets as "Loans held for investment in consolidated trusts, at amortized cost"; and

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(3) the fair value changes of financial derivatives and the corresponding assets or liabilities designated in a fair value hedge relationship.

Net effective spread also principally differs from net interest income and net interest yield becauseit includes: (1) the accrual of income and expense related to the contractual amounts due on financial derivativesthat are not designated in hedge relationships ("undesignated financial derivatives"); and (2) the net effects of terminations or net settlements on financial derivatives. More information about Farmer Mac’s use of non-GAAP measures is available in "Management's Discussion and Analysis of Financial Condition and Results of Operations—Results of Operations" in Farmer Mac's Quarterly Report on Form 10-Q for the quarter ended March 31, 2019 filed today with the SEC.

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, and net interest income and net interest yield to net effective spread, see the "Reconciliations" section below.

Forward-Looking Statements

Management's expectations for Farmer Mac's future necessarily involve assumptions and estimates and the evaluation of risks and uncertainties. Various factors or events, both known and unknown, could cause Farmer Mac's actual results to differ materially from the expectations as expressed or implied by the forward-looking statements in this release, including uncertainties about:

• the availability to Farmer Mac of debt and equity financing and, if available, the reasonableness of rates and terms;

• legislative or regulatory developments that could affect Farmer Mac, its sources of business, or the agricultural or rural utilities industries;

• fluctuations in the fair value of assets held by Farmer Mac and its subsidiaries;

• the rate and direction of development of the secondary market for agricultural mortgage and rural utilities loans, including lender interest in Farmer Mac's products and the secondary market provided by Farmer Mac;

• the general rate of growth in agricultural mortgage and rural utilities indebtedness;

• the effect of economic conditions, including the effects of drought and other weather-related conditions and fluctuations in agricultural real estate values, on agricultural mortgage lending and borrower repayment capacity;

• the effect of any changes in Farmer Mac's executive leadership;

• developments in the financial markets, including possible investor, analyst, and rating agency reactions to events involving government-sponsored enterprises, including Farmer Mac;

• changes in the level and direction of interest rates, which could, among other things, affect the value of collateral securing Farmer Mac's agricultural mortgage loan assets;

• the degree to which Farmer Mac is exposed to basis risk, which results from fluctuations in Farmer Mac's borrowing costs relative to market indexes; and

• volatility in commodity prices relative to costs of production, changes in U.S. trade policies, or fluctuations in export demand for U.S. agricultural products.

Other risk factors are discussed in "Risk Factors" in Part I, Item 1A in Farmer Mac's Annual Report on Form 10-K for the year ended December 31, 2018, as filed with the SEC on February 21, 2019. Considering these potential risks and uncertainties, no undue reliance should be placed on any forward-looking statements expressed in this release. The forward-looking statements contained in this release represent management's expectations as of the date of this release. Farmer Mac undertakes no obligation to release publicly the results of revisions to any forward-looking statements included in this release to reflect new information or any

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future events or circumstances, except as otherwise required by applicable law or regulation. The information in this release is not necessarily indicative of future results.

About Farmer Mac

Farmer Mac is a vital part of the agricultural credit markets and works to increase the availability and affordability of credit for the benefit of American agricultural and rural communities. As the nation’s largest secondary market for agricultural credit, we provide financial solutions to a broad spectrum of the agricultural community, including agricultural lenders, agribusinesses, and other institutions that can benefit from access to flexible, low-cost financing and risk management tools. Farmer Mac's customers benefit from our low cost of funds, low overhead costs, and high operational efficiency. In fact, we are often able to provide the lowest cost of borrowing to agricultural and rural borrowers. For more than thirty years, Farmer Mac has been delivering the capital and commitment rural America deserves. More information about Farmer Mac (including the Quarterly Report on Form 10-Q referenced above and the Annual Report on Form 10-K) is available on Farmer Mac's website at www.farmermac.com.

CONTACT:     Jalpa Nazareth, Investor Relations

Megan Murray-Pelaez, Media Inquiries

(202) 872-7700

* * * *

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FEDERAL AGRICULTURAL MORTGAGE CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(unaudited)

	As of
	March 31, 2019			December 31, 2018
	(in thousands)
Assets:
Cash and cash equivalents	$	376,122		$	425,256
Investment securities:
Available-for-sale, at fair value	2,457,978			2,217,852
Held-to-maturity, at amortized cost	45,032			45,032
Total Investment Securities	2,503,010			2,262,884
Farmer Mac Guaranteed Securities:
Available-for-sale, at fair value	6,441,624			5,974,497
Held-to-maturity, at amortized cost	2,040,415			2,096,618
Total Farmer Mac Guaranteed Securities	8,482,039			8,071,115
USDA Securities:
Trading, at fair value	9,487			9,999
Held-to-maturity, at amortized cost	2,125,312			2,166,174
Total USDA Securities	2,134,799			2,176,173
Loans:
Loans held for investment, at amortized cost	4,480,511			4,004,968
Loans held for investment in consolidated trusts, at amortized cost	1,566,330			1,517,101
Allowance for loan losses	(6,753		)	(7,017		)
Total loans, net of allowance	6,040,088			5,515,052
Real estate owned, at lower of cost or fair value	1,253			128
Financial derivatives, at fair value	6,053			7,487
Interest receivable (includes $11,727 and $19,783, respectively, related to consolidated trusts)	143,877			180,080
Guarantee and commitment fees receivable	39,913			40,366
Deferred tax asset, net	3,994			6,369
Prepaid expenses and other assets	66,629			9,418
Total Assets	$	19,797,777		$	18,694,328
Liabilities and Equity:
Liabilities:
Notes payable:
Due within one year	$	8,571,615		$	7,757,050
Due after one year	8,679,287			8,486,647
Total notes payable	17,250,902			16,243,697
Debt securities of consolidated trusts held by third parties	1,567,195			1,528,957
Financial derivatives, at fair value	22,203			19,633
Accrued interest payable (includes $9,647 and $17,125, respectively, related to consolidated trusts)	94,420			96,743
Guarantee and commitment obligation	38,288			38,683
Accounts payable and accrued expenses	59,433			11,891
Reserve for losses	2,038			2,167
Total Liabilities	19,034,479			17,941,771
Commitments and Contingencies
Equity:
Preferred stock:
Series A, par value $25 per share, 2,400,000 shares authorized, issued and outstanding	58,333			58,333
Series B, par value $25 per share, 3,000,000 shares authorized, issued and outstanding	73,044			73,044
Series C, par value $25 per share, 3,000,000 shares authorized, issued and outstanding	73,382			73,382
Common stock:
Class A Voting, $1 par value, no maximum authorization, 1,030,780 shares outstanding	1,031			1,031
Class B Voting, $1 par value, no maximum authorization, 500,301 shares outstanding	500			500
Class C Non-Voting, $1 par value, no maximum authorization, 9,157,841 shares and 9,137,550 shares outstanding, respectively	9,158			9,138
Additional paid-in capital	118,841			118,822
Accumulated other comprehensive income, net of tax	21,254			24,956
Retained earnings	407,755			393,351
Total Equity	763,298			752,557
Total Liabilities and Equity	$	19,797,777		$	18,694,328

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FEDERAL AGRICULTURAL MORTGAGE CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited)

	For the Three Months Ended
	March 31, 2019			March 31, 2018
	(in thousands, except per share amounts)
Interest income:
Investments and cash equivalents	$	18,707		$	11,463
Farmer Mac Guaranteed Securities and USDA Securities	85,411			62,430
Loans	51,397			45,653
Total interest income	155,515			119,546
Total interest expense	114,916			76,317
Net interest income	40,599			43,229
Release of loan losses	264			431
Net interest income after release of loan losses	40,863			43,660
Non-interest income:
Guarantee and commitment fees	3,513			3,499
Losses on financial derivatives	(360		)	(3,850		)
Gains on trading securities	44			16
Other income	493			574
Non-interest income	3,690			239
Non-interest expense:
Compensation and employee benefits	7,606			6,654
General and administrative	4,596			4,326
Regulatory fees	688			625
Real estate owned operating costs, net	—			16
(Release of)/provision for reserve for losses	(129		)	21
Non-interest expense	12,761			11,642
Income before income taxes	31,792			32,257
Income tax expense	6,622			6,438
Net income attributable to Farmer Mac	25,170			25,819
Preferred stock dividends	(3,296		)	(3,295		)
Net income attributable to common stockholders	$	21,874		$	22,524
Earnings per common share:
Basic earnings per common share	$	2.05		$	2.12
Diluted earnings per common share	$	2.03		$	2.10

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Reconciliations

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 for the periods indicated:

Reconciliation of Net Income Attributable to Common Stockholders to Core Earnings
	For the Three Months Ended
	March 31, 2019			December 31, 2018			March 31, 2018
	(in thousands, except per share amounts)
Net income attributable to common stockholders	$	21,874		$	19,560		$	22,524
Less reconciling items:
Gains/(losses) on undesignated financial derivatives due to fair value changes	2,240			(96		)	(2,279		)
(Losses)/gains on hedging activities due to fair value changes	(2,817		)	(853		)	2,564
Unrealized gains on trading securities	44			57			16
Amortization of premiums/discounts and deferred gains on assets consolidated at fair value	(16		)	67			(686		)
Net effects of terminations or net settlements on financial derivatives	110			(312		)	1,242
Income tax effect related to reconciling items	92			238			(180		)
Sub-total	(347		)	(899		)	677
Core earnings	$	22,221		$	20,459		$	21,847
Composition of Core Earnings:
Revenues:
Net effective spread(1)	$	38,801		$	38,855		$	37,101
Guarantee and commitment fees(2)	5,419			5,309			5,083
Other(3)	509			(129		)	428
Total revenues	44,729			44,035			42,612
Credit related (income)/expense(GAAP):
Release of losses	(393		)	166			(410		)
REO operating expenses	—			—			16
Total credit related (income)/expense	(393		)	166			(394		)
Operating expenses (GAAP):
Compensation and employee benefits	7,606			7,167			6,654
General and administrative	4,596			5,829			4,326
Regulatory fees	688			687			625
Total operating expenses	12,890			13,683			11,605
Net earnings	32,232			30,186			31,401
Income tax expense(4)	6,715			6,431			6,259
Preferred stock dividends (GAAP)	3,296			3,296			3,295
Core earnings	$	22,221		$	20,459		$	21,847
Core earnings per share:
Basic	$	2.08		$	1.92		$	2.06
Diluted	2.06			1.90			2.03

⁽¹⁾  Net effective spread is a non-GAAP measure. See "Use of Non-GAAP Measures—Net Effective Spread" above for an explanation of net effective spread. See below for a reconciliation of net interest income to net effective spread.

⁽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 hedging activities, 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.

10

Reconciliation of GAAP Basic Earnings Per Share to Core Earnings Basic Earnings Per Share
	For the Three Months Ended
	March 31, 2019			December 31, 2018			March 31, 2018
	(in thousands, except per share amounts)
GAAP - Basic EPS	$	2.05		$	1.84		$	2.12
Less reconciling items:
Gains/(losses) on undesignated financial derivatives due to fair value changes	0.21			(0.01		)	(0.21		)
(Losses)/gains on hedging activities due to fair value changes	(0.26		)	(0.08		)	0.24
Unrealized gains on trading securities	—			0.01			—
Amortization of premiums/discounts and deferred gains on assets consolidated at fair value	—			0.01			(0.06		)
Net effects of terminations or net settlements on financial derivatives	0.01			(0.03		)	0.12
Income tax effect related to reconciling items	0.01			0.02			(0.03		)
Sub-total	(0.03		)	(0.08		)	0.06
Core Earnings - Basic EPS	$	2.08		$	1.92		$	2.06
Shares used in per share calculation (GAAP and Core Earnings)	10,670			10,669			10,622

Reconciliation of GAAP Diluted Earnings Per Share to Core Earnings Diluted Earnings Per Share
	For the Three Months Ended
	March 31, 2019			December 31, 2018			March 31, 2018
	(in thousands, except per share amounts)
GAAP - Diluted EPS	$	2.03		$	1.82		$	2.10
Less reconciling items:
Gains/(losses) on undesignated financial derivatives due to fair value changes	0.21			(0.01		)	(0.21		)
(Losses)/gains on hedging activities due to fair value changes	(0.26		)	(0.08		)	0.24
Unrealized gains on trading securities	—			0.01			—
Amortization of premiums/discounts and deferred gains on assets consolidated at fair value	—			0.01			(0.06		)
Net effects of terminations or net settlements on financial derivatives	0.01			(0.03		)	0.12
Income tax effect related to reconciling items	0.01			0.02			(0.02		)
Sub-total	(0.03		)	(0.08		)	0.07
Core Earnings - Diluted EPS	$	2.06		$	1.90		$	2.03
Shares used in per share calculation (GAAP and Core Earnings)	10,777			10,745			10,741

11

The following table presents a reconciliation of net interest income and net yield to net effective spread for the periods indicated:

Reconciliation of GAAP Net Interest Income/Yield to Net Effective Spread
	For the Three Months Ended
	March 31, 2019					December 31, 2018					March 31, 2018
	Dollars			Yield		Dollars			Yield		Dollars			Yield
	(dollars in thousands)
Net interest income/yield	$	40,599		0.86	%	$	42,216		0.93	%	$	43,229		0.98	%
Net effects of consolidated trusts	(1,905		)	0.03	%	(1,804		)	0.04	%	(1,584		)	0.04	%
Expense related to undesignated financial derivatives	(2,544		)	(0.06	)%	(2,161		)	(0.06	)%	(2,302		)	(0.06	)%
Amortization of premiums/discounts on assets consolidated at fair value	23			—	%	(138		)	—	%	694			0.02	%
Amortization of losses due to terminations or net settlements on financial derivatives and hedging activities	(71		)	—	%	(69		)	—	%	(98		)	—	%
Fair value changes on fair value hedge relationships	2,699			0.06	%	811			0.02	%	(2,838		)	(0.07	)%
Net effective spread	$	38,801		0.89	%	$	38,855		0.93	%	$	37,101		0.91	%

12

The following table presents core earnings for Farmer Mac's reportable operating segments and a reconciliation to consolidated net income for the three months ended March 31, 2019:

Core Earnings by Business Segment
For the Three Months Ended March 31, 2019
	Farm & Ranch			USDA Guarantees			Rural  Utilities			Institutional Credit			Corporate			Reconciling Adjustments				Consolidated Net Income
	(in thousands)
Net interest income	$	15,282		$	4,442		$	(274	)	$	18,187		$	2,962		$	—			$	40,599
Less: reconciling adjustments(1)(2)(3)	(2,545		)	(478		)	3,507			(1,814		)	(468		)	1,798				—
Net effective spread	12,737			3,964			3,233			16,373			2,494			1,798				—
Guarantee and commitment fees(2)	4,744			224			363			88			—			(1,906		)		3,513
Other income/(expense)(3)	480			—			7			—			22			(332		)		177
Non-interest income/(loss)	5,224			224			370			88			22			(2,238		)		3,690
Release of loan losses	264			—			—			—			—			—				264
Release of reserve for losses	129			—			—			—			—			—				129
Other non-interest expense	(4,799		)	(1,428		)	(866		)	(2,159		)	(3,638		)	—				(12,890		)
Non-interest expense(4)	(4,670		)	(1,428		)	(866		)	(2,159		)	(3,638		)	—				(12,761		)
Core earnings before income taxes	13,555			2,760			2,737			14,302			(1,122		)	(440		)	(5)	31,792
Income tax (expense)/benefit	(2,847		)	(580		)	(575		)	(3,003		)	290			93				(6,622		)
Core earnings before preferred stock dividends and attribution of income to non-controlling interest	10,708			2,180			2,162			11,299			(832		)	(347		)	(5)	25,170
Preferred stock dividends	—			—			—			—			(3,296		)	—				(3,296		)
Segment core earnings/(losses)	$	10,708		$	2,180		$	2,162		$	11,299		$	(4,128	)	$	(347	)	(5)	$	21,874
Total assets at carrying value	$	4,698,250		$	2,191,896		$	1,443,393		$	8,502,084		$	2,962,154		$	—			$	19,797,777
Total on- and off-balance sheet program assets at principal balance	$	7,215,585		$	2,484,779		$	2,074,714		$	8,731,835		$	—		$	—			$	20,506,913

⁽¹⁾  Excludes the amortization of premiums and discounts on assets consolidated at fair value, originally included in interest income, to reflect core earnings amounts.

⁽²⁾  Includes the reclassification of interest income and interest expense from consolidated trusts owned by third parties to guarantee and commitment fees, to reflect management's view that the net interest income Farmer Mac earns is effectively a guarantee fee.

⁽³⁾  Includes the reclassification of interest expense related to interest rate swaps not designated as hedges, which are included in "(Losses)/gains on financial derivatives and hedging activities" on the consolidated financial statements, to determine the effective funding cost for each operating segment.

⁽⁴⁾  Includes directly attributable costs and an allocation of indirectly attributable costs based on employee headcount.

⁽⁵⁾  Net adjustments to reconcile to the corresponding income measures: core earnings before income taxes reconciled to income before income taxes; core earnings before preferred stock dividends and attribution of income to non-controlling interest reconciled to net income; and segment core earnings reconciled to net income attributable to common stockholders.

13

Supplemental Information

The following table sets forth information regarding outstanding volume in each of Farmer Mac's four lines of business as of the dates indicated:

Lines of Business - Outstanding Business Volume
	As of March 31, 2019		As of December 31, 2018
	(in thousands)
On-balance sheet:
Farm & Ranch:
Loans	$	3,044,567	$	3,071,222
Loans held in trusts:
Beneficial interests owned by third party investors	1,566,330		1,517,101
USDA Guarantees:
USDA Securities	2,081,498		2,120,553
Farmer Mac Guaranteed USDA Securities	26,794		27,383
Rural Utilities:
Loans	1,429,101		938,843
Institutional Credit:
AgVantage securities	8,421,937		8,072,919
Total on-balance sheet	$	16,570,227	$	15,748,021
Off-balance sheet:
Farm & Ranch:
LTSPCs	$	2,476,467	$	2,509,787
Guaranteed Securities	128,221		135,862
USDA Guarantees:
Farmer Mac Guaranteed USDA Securities	376,487		367,684
Rural Utilities:
LTSPCs(1)	645,613		653,272
Institutional Credit:
AgVantage securities	9,898		9,898
Revolving floating rate AgVantage facility(2)	300,000		300,000
Total off-balance sheet	$	3,936,686	$	3,976,503
Total	$	20,506,913	$	19,724,524

⁽¹⁾  Includes $20.0 million and $17.0 million related to one-year loan purchase commitments on which Farmer Mac receives a nominal unused commitment fee as of March 31, 2019 and December 31, 2018, respectively.

⁽²⁾  During first quarter 2019, $100.0 million of this facility was drawn and subsequently repaid. During first quarter 2018, this facility was not utilized. Farmer Mac receives a fixed fee based on the full dollar amount of the facility. If the counterparty draws on the facility, the amounts drawn will be in the form of AgVantage securities, and Farmer Mac will earn interest income on those securities.

14

The following table presents the quarterly net effective spread by segment:

	Net Effective Spread by Line of Business
	Farm & Ranch				USDA Guarantees				Rural Utilities				Institutional Credit				Corporate				Net Effective Spread
	Dollars		Yield		Dollars		Yield		Dollars		Yield		Dollars		Yield		Dollars		Yield		Dollars		Yield
	(dollars in thousands)
For the quarter ended:
March 31, 2019(1)	$	12,737	1.70	%	$	3,964	0.74	%	$	3,233	1.12	%	$	16,373	0.79	%	$	2,494	0.35	%	$	38,801	0.89	%
December 31, 2018	13,288		1.79	%	4,630		0.85	%	2,833		1.19	%	15,751		0.80	%	2,353		0.36	%	38,855		0.93	%
September 30, 2018	13,887		1.91	%	4,627		0.86	%	2,877		1.18	%	15,642		0.78	%	2,044		0.30	%	39,077		0.93	%
June 30, 2018	13,347		1.86	%	4,398		0.83	%	2,923		1.15	%	15,220		0.76	%	274		0.04	%	36,162		0.86	%
March 31, 2018	12,540		1.80	%	4,400		0.82	%	2,950		1.12	%	14,824		0.78	%	2,387		0.36	%	37,101		0.91	%
December 31, 2017	12,396		1.80	%	4,979		0.93	%	3,057		1.14	%	14,800		0.78	%	2,235		0.35	%	37,467		0.93	%
September 30, 2017	11,303		1.73	%	4,728		0.90	%	2,765		1.07	%	14,455		0.78	%	2,725		0.41	%	35,976		0.91	%
June 30, 2017	11,158		1.77	%	4,551		0.87	%	2,669		1.06	%	14,467		0.81	%	2,489		0.36	%	35,334		0.91	%
March 31, 2017	10,511		1.77	%	4,561		0.89	%	2,568		1.04	%	12,615		0.82	%	2,271		0.32	%	32,526		0.90	%

⁽¹⁾  See above for a reconciliation of GAAP net interest income by line of business to net effective spread by line of business for three months ended March 31, 2019.

15

The following table presents quarterly core earnings reconciled to net income attributable to common stockholders:

Core Earnings by Quarter Ended
	March 2019			December 2018			September 2018			June 2018			March 2018			December 2017			September 2017			June 2017			March 2017
Revenues:
Net effective spread	$	38,801		$	38,855		$	39,077		$	36,162		$	37,101		$	37,467		$	35,976		$	35,334		$	32,526
Guarantee and commitment fees	5,419			5,309			5,170			5,171			5,083			5,157			4,935			4,942			5,316
Other	509			(129		)	110			111			428			69			274			107			485
Total revenues	44,729			44,035			44,357			41,444			42,612			42,693			41,185			40,383			38,327
Credit related (income)/expense:
(Release of)/provision for losses	(393		)	166			(3		)	582			(410		)	464			384			466			444
REO operating expenses	—			—			—			—			16			—			—			23			—
Losses/(gains) on sale of REO	—			—			41			(34		)	—			(964		)	(32		)	(757		)	5
Total credit related (income)/expense	(393		)	166			38			548			(394		)	(500		)	352			(268		)	449
Operating expenses:
Compensation and employee benefits	7,606			7,167			6,777			6,936			6,654			5,247			5,987			6,682			6,317
General and administrative	4,596			5,829			4,350			5,202			4,326			4,348			3,890			3,921			3,800
Regulatory fees	688			687			625			625			625			625			625			625			625
Total operating expenses	12,890			13,683			11,752			12,763			11,605			10,220			10,502			11,228			10,742
Net earnings	32,232			30,186			32,567			28,133			31,401			32,973			30,331			29,423			27,136
Income tax expense	6,715			6,431			6,891			5,477			6,259			11,796			10,268			10,307			8,844
Net loss attributable to non-controlling interest(1)	—			—			—			—			—			—			—			(150		)	(15		)
Preferred stock dividends	3,296			3,296			3,295			3,296			3,295			3,296			3,295			3,296			3,295
Core earnings	$	22,221		$	20,459		$	22,381		$	19,360		$	21,847		$	17,881		$	16,768		$	15,970		$	15,012
Reconciling items:
Gains/(losses) on undesignated financial derivatives due to fair value changes	2,240			(96		)	3,625			6,709			(2,279		)	(261		)	995			801			8,683
(Losses)/gains on hedging activities due to fair value changes	(2,817		)	(853		)	1,051			1,687			2,564			(3		)	1,742			1,420			(3,878		)
Unrealized gains/(losses) on trading assets	44			57			(3		)	11			16			60			—			(2		)	(82		)
Amortization of premiums/discounts and deferred gains on assets consolidated at fair value	(16		)	67			(38		)	196			(686		)	(129		)	(954		)	(117		)	(127		)
Net effects of terminations or net settlements on financial derivatives	110			(312		)	546			232			1,242			632			862			232			948
Re-measurement of net deferred tax asset due to enactment of new tax legislation	—			—			—			—			—			(1,365		)	—			—			—
Income tax effect related to reconciling items	92			238			(1,088		)	(1,855		)	(180		)	(105		)	(926		)	(816		)	(1,941		)
Net income attributable to common stockholders	$	21,874		$	19,560		$	26,474		$	26,340		$	22,524		$	16,710		$	18,487		$	17,488		$	18,615

⁽¹⁾  As of May 1, 2017, Farmer Mac transferred its entire 65% ownership interest in Contour Valuation Services, LLC (also known as AgVisory) back to the limited liability company.

16

EX-99.2

First Quarter Equity Investor Presentation 2019

FARMER MAC Forward-Looking Statements In addition to historical information, this presentation includes forward- NO OFFER OR SOLICITATION OF SECURITIES looking statements that reflect management’s current expectations for This presentation does not constitute an offer to sell or a solicitation of Farmer Mac’s future financial results, business prospects, and business an offer to buy any Farmer Mac security. Farmer Mac securities are developments. Forward-looking statements include, without limitation, offered only in jurisdictions where permissible by offering documents any statement that may predict, forecast, indicate, or imply future available through qualified securities dealers. Any investor who is results, performance, or achievements. Management’s expectations for considering purchasing a Farmer Mac security should consult the Farmer Mac’s future necessarily involve assumptions, estimates, and applicable offering documents for the security and their own financial the evaluation of risks and uncertainties. Various factors or events, both and legal advisors for information about and analysis of the security, the known and unknown, could cause Farmer Mac’s actual results to differ risks associated with the security, and the suitability of the investment materially from the expectations as expressed or implied by the forward- for the investor’s particular circumstances. looking statements. Some of these factors are identified and discussed in Farmer Mac’s Annual Report on Form 10-K for the year ended Copyright © 2019 by Farmer Mac. No part of this document may be December 31, 2018, filed with the U.S. Securities and Exchange duplicated, reproduced, distributed, or displayed in public in any manner Commission (“SEC”) on February 21, 2019 and Quarterly Report on or by any means without the written permission of Farmer Mac. Form 10-Q for the quarter ended March 31, 2019, filed with the SEC on May 2, 2019. These reports are also available on Farmer Mac’s website (www.farmermac.com). Considering these potential risks and uncertainties, no undue reliance should be placed on any forward- looking statements expressed in this presentation. Any forward-looking statements made in this presentation are current only as of March 31, 2019, except as otherwise indicated. Farmer Mac undertakes no obligation to release publicly the results of revisions to any such forward-looking statements that may be made to reflect new information or any future events or circumstances, except as otherwise required by applicable law or regulation. The information in this presentation is not necessarily indicative of future results. 02

FARMER MAC Use of Non-GAAP Financial Measures This presentation is for general informational purposes only, is current Core earnings and core earnings per share also differ from net income only as of March 31, 2019, and should be read in conjunction with attributable to common stockholders and earnings per common share, Farmer Mac’s Quarterly Report on Form 10-Q filed with the SEC on respectively, by excluding specified infrequent or unusual transactions May 2, 2019. In the accompanying analysis of its financial information, that Farmer Mac believes are not indicative of future operating results and Farmer Mac uses the following non-GAAP financial measures: core that may not reflect the trends and economic financial performance of earnings, core earnings per share, and net effective spread. Farmer Farmer Mac's core business. Mac uses these non-GAAP measures to measure corporate economic Farmer Mac uses net effective spread to measure the net spread Farmer performance and develop financial plans because, in management's Mac earns between its interest-earning assets and the related net funding view, they are useful alternative measures in understanding Farmer costs of these assets. Net effective spread differs from net interest Mac's economic performance, transaction economics, and business income and net interest yield because it excludes: (1) the amortization of trends. The non-GAAP financial measures that Farmer Mac uses may premiums and discounts on assets consolidated at fair value that are not be comparable to similarly labeled non-GAAP financial measures amortized as adjustments to yield in interest income over the contractual disclosed by other companies. Farmer Mac's disclosure of these non- or estimated remaining lives of the underlying assets; (2) interest income GAAP financial measures is intended to be supplemental in nature and is and interest expense related to consolidated trusts with beneficial not meant to be considered in isolation from, as a substitute for, or as interests owned by third parties, which are presented on Farmer Mac's more important than, the related financial information prepared in consolidated balance sheets as “Loans held for investment in accordance with GAAP. consolidated trusts, at amortized cost;” and (3) the fair value changes of Core earnings and core earnings per share principally differ from net financial derivatives and the corresponding assets and liabilities income attributable to common stockholders and earnings per designated in a fair value hedge relationship. Net effective spread also common share, respectively, by excluding the effects of fair value principally differs from net interest income and net interest yield because it fluctuations. These fluctuations are not expected to have a cumulative includes: (1) the accrual of income and expense related to the contractual net impact on Farmer Mac's financial condition or results of operations amounts due on financial derivatives that are not designated in hedge reported in accordance with GAAP if the related financial instruments relationships; and (2) the net effects of terminations or net settlements on are held to maturity, as is expected. financial derivatives. 03

FARMER MAC Investment Highlights •90-Day delinquencies of only 0.73% Quality Assets •Cumulative lifetime losses of only 0.13% •Issue at narrow, GSE spreads to U.S. Treasuries Funding Advantage •E.g., 10-year U.S. Treasury +0.51% •Ag productivity must double by 2050, creating significant “demand pull” Growth Prospects •9% share of an ~$160 billion and growing ag mortgage market •Overhead / outstanding business volume ~20 bps Operational Efficiency •~$900,000 earnings per employee in 2018 Quality, Recurring •99% of total revenues is recurring net effective spread and fees Earnings •Outstanding business volume CAGR of 10.8% (2000 to 2018) Strong Returns, •Core earnings ROE ~17% throughout 2018 Responsible Growth •~30% annual core earnings growth during 2018 04

FARMER MAC A Mission-Driven, For-Profit Company Our Mission Farmer Mac initially chartered • Increase the availability and affordability of credit for 1987 by Congress as an instrumentality the benefit of American agricultural and rural of the United States communities Initial public offering Our Stakeholders First listed on NASDAQ • Farmers, ranchers and rural Americans 1988 (FAMCU & FAMCL) • Stockholders • Financial institutions First major charter revision • Employees 1996 and expansion of authority • Congress (direct loan purchases) • Regulator First listed Our Corporate Social Responsibility 1999 on NYSE (AGM & AGM.A) • To help create sustainable, vibrant rural American communities • We achieve this by conducting our business Second major charter revision and expansion of authority – With absolute integrity 2008 (Rural Utilities) – By holding ourselves to high ethical standards – By promoting a diverse, respectful, and inclusive culture 05

FARMER MAC Executive Leadership Bradford T. Nordholm R. Dale Lynch John C. Covington President and Chief Executive Officer Executive Vice President – Chief Financial Executive Vice President – Chief Credit Officer and Treasurer Officer • 30+ years of experience in financial • 40+ years of experience in agricultural • 40+ years of agricultural and energy finance management, capital markets, business lending experience development, credit, and investor • Joined Farmer Mac in 2015 from Bank of the • Joined Farmer Mac in October 2018 from communications West, where he previously served as Starwood Energy Group, a leading private • Joined Farmer Mac in 2013 overseeing Managing Director for the Ag and Rural investment firm where he served as CEO financial management, corporate finance, Banking Division and later as Vice Chairman capital markets, ALM, investor relations, • Prior experience includes various • Prior experience includes CEO of US Central accounting, and financial reporting management positions within the Farm and management positions at National • Prior experience includes various Credit System and Rabobank Cooperative and within the Farm Credit management positions at Allied Capital, System Lehman Brothers, and Merrill Lynch 06

FARMER MAC Central to a Large Addressable Ag Mortgage Market (1) (2) (FCS Secondary Market GSE) $15.0 Billion (3) (9% Eligible Market Share) COMPANIES INSURANCE Loan Purchase $8B Wholesale Funding Credit Protection Farm Credit System Non-FCS Ag (FCS) Lenders (Cooperative GSE) AG BANKS $61B Addressable • Insurance Companies • Four FCS Banks Agriculture ($9 Billion) Mortgage Mortgage Market Mortgage Financing Financing • 73 Retail Agricultural $167 Billion(3) • Ag Banks Credit Associations ($63 Billion) - NON {Farmers & Ranchers} LENDERS • Non-Bank Lenders$13B ($14 Billion) BANK $75 Billion $86 Billion New Entrants Financial Funds (own <1% U.S. Farmland) (debt and equity strategies) (1) Eligible ag real estate mortgage market structure shown here includes the forecast for outstanding unpaid principal balance of first lien ag mortgage assets as of December 31, 2018 reduced by forty percent to estimate the outstanding unpaid principal balance of loans that would not be eligible under Farmer Mac’s lines of business. (2) Source: FDIC Call Reports (ag banks), FCA Call Report Data, and Federal Reserve Board of Governors (insurance companies and Farm Service Agency portion of non-bank lenders) data as of December 2018. USDA, Economic Research Service forecast for remaining non-bank lenders for year-end 2018 on a prorated basis. All non-FCS and FCS data adjusted for estimates of 07 eligibility under Farmer Mac’s lines of business. (3) Sum of FCS, non-FCS, and Farmer Mac first lien ag real estate mortgage assets does not add up to the total due to the nature of Farmer Mac’s business model.

FARMER MAC “Demand Pull” Provides Sustained Growth Opportunity(1) (2) 12.0 0.50 0.43 0.45 ARABLE LANDPER CAPITA (hectare in use per person) per use in (hectare 10.0 0.40 8.0 0.35 0.30 6.0 0.25 0.18 (in billions) (in 0.20 4.0 0.15 WORLD POPULATION 2.0 0.10 3.0 9.8 0.05 0.0 0.00 1960 1970 1980 1990 2000 2010 2020 2030 2040 2050 World Population Arable Land per capita World population is expected to grow to 9.8 billion by 2050 • Arable land per person is expected to decline over 40% from 2005 to 2050 USDA projects a 75% increase in total production and consumption of major field crops in the same period • 43% increase in world population • Higher protein diets as incomes in developing countries increase Productivity would need to nearly double by 2050 to feed the world 08 (1) Source: USDA, Economic Research Service Global Drivers of Agricultural Demand and Supply, September 2014. (2) Source: Food and Agriculture Organization of the United Nations, “World Agriculture Towards 2030/2050,” June 2012.

FARMER MAC Strategically Targeted Growth Opportunities Farmer Mac’s management and Board have set strategic 5-year and 15-year market share goals • Specifically identified growth opportunities in order to reach these objectives • Growth opportunities include new products and new customers Specific Opportunities: Farm Credit System (FCS) New Entrants Non-FCS Ag Lenders • Significant loan • Wholesale funding products • Leverage a mortgage purchase/sale opportunities to debt and equity funds aggregator model • Project energy finance • Institutional mortgage loan • Extend penetration of purchase opportunities products to existing • Wholesale funding customers • Facilitate new debt fund counterparties • Explore new distribution channels (e.g. digital marketing) Approx. half the market; “Financialization of Significant new channel Largely unpenetrated by Agriculture” in its earliest and efficiency Farmer Mac stages; opportunities Significant upside 09

FARMER MAC Lines of Business and Products AS OF MARCH 31, 2019 Product Type Customers Lines of Business $ IN BILLIONS AND PERCENTAGE OF TOTAL VOLUME LOAN PURCHASES • Ag Banks F & R USDA RU IC Total • FCS Institutions $4.6 $2.5 $1.4 -- $8.5 • Insurance Companies 22% 12% 7% 41% • Rural Utilities Cooperatives WHOLESALE FINANCING • Ag Banks -- -- -- $8.7 $8.7 • Ag Investment Funds • AgVantage 43% 43% • Insurance Companies • Farm Equity AgVantage • Rural Utilities Cooperatives CREDIT PROTECTION • FCS Institutions $2.6 -- $0.7 -- $3.3 • Ag Banks • Long-term Standby Purchase 13% 3% 16% Commitments (LTSPCs)/ • Insurance Companies AMBS Guarantees • Ag Investment Funds • Rural Utilities Cooperatives Total $7.2 $2.5 $2.1 $8.7 $20.5 = Allowances and provisions recorded on these assets Note: Table may not sum to total due to rounding 10

FARMER MAC Attractive Credit-Risk Adjusted Returns Lines of Business FISCAL YEAR 2018 Farm & Ranch(1) Rural Utilities Institutional USDA Total Loan Credit Loan Credit Credit Purchase Protection Purchase Protection Assets ($ in billions) $3.1 $4.2 $2.5 $0.9 $0.7 $8.4 $19.7 YOY Growth (%) 10% 2% 7% (13)% (19)% 6% 4% (2) Net Effective Spread (%) 1.79% -- 0.85% 1.19% -- 0.80% 0.91% (2) After-Tax Revenue ($ in millions) $41.9 $14.2 $14.9 $9.2 $1.3 $48.8 $135.9 (3) Credit Risk-Weighted Assets (%) ~65% ~55% ~0% ~40% ~45% ~3% ~25% Credit Risk-Weighted Assets ($ in billions) (3) $2.0 $2.3 $0 $0.4 $0.3 $0.3 $5.0 (4) Risk-Adjusted Equity Allocation (@ 10%, $ in millions) $200 $229 $0 $38 $29 $25 $502 (5) Credit Risk-Adjusted ROE (annualized) ~20% ~10% Undefined ~20% ~5% ~200% ~30% (1) For the purposes of this chart, Farm & Ranch Loan Purchase assets include loans held on-balance sheet and Farm & Ranch Credit Protection assets include loans consolidated on-balance sheet held in trusts with beneficial interests owned by third party investors and loans underlying off-balance sheet LTSPCs and Farm & Ranch Guaranteed Securities. (2) After-tax Revenue includes net effective spread and guarantee & commitment fees. Net effective spread is a non-GAAP measure. For more information on the use of non-GAAP measures, please see page 3. For a reconciliation of net effective spread to GAAP net interest income, please refer to pages 25-26 of the Appendix. (3) Approximate result is based on the application of the Advanced Internal Ratings-Based credit risk-weighting methodology presented by the Basel Committee on Banking Supervision for evaluating capital adequacy. (4) Risk-Adjusted Equity Allocation of 10% approximates the capital requirements set forth under Farmer Mac’s Board-approved policy on capital adequacy, which requires a Tier 1 capital ratio of at least 7% and a Tier 1 capital conservation buffer of greater than 2.5% of Farmer Mac’s total risk weighted assets. (5) Credit risk-adjusted ROE calculated by dividing Total Revenues into the Risk-Adjusted Equity Allocation. 11

FARMER MAC Creating Value Across Market Environments Uniquely positioned to share in upside opportunity in strong markets Benefit from loss protection and increased relative demand in weaker markets Strong Market Weak Market Credit is healthy; transaction volumes Declining farm income, land values, and are high; and capital is plentiful credit quality; less access to capital Impacts on Farmer Mac: Impacts on Farmer Mac: – Benefit from higher industry volumes – Loss protection from unique diversified and healthy credit portfolio and conservative underwriting – Relative value of access to GSE capital – Greater relative value of access to GSE may be marginally lower capital – Lower credit costs, but spreads may be – Declining credit quality, although tighter spreads may be more favorable 12

FARMER MAC Growing, Recurring, High-Quality Earnings Outstanding Business Volume $22.0 $20.0 7.5% CAGR $18.0 (2015-2018) $16.0 $14.0 $12.0 $10.0 $8.0 $ IN BILLIONS $6.0 $4.0 $2.0 $15.9 $17.4 $19.0 $19.7 $20.5 $0.0 2015 2016 2017 2018 1Q19 Outstanding Business Volume Net Effective Spread & Core Earnings(1) $160.0 8.8% CAGR 21.4% CAGR $100.0 $140.0 (2015-2018) (2015-2018) $80.0 EARNINGS CORE $120.0 MILLIONS IN $ $100.0 $60.0 $80.0 $60.0 $40.0 $40.0 $ IN MILLIONS $20.0 $20.0 $119.4 $47.0 $123.1 $53.5 $141.3 $65.6 $151.2 $84.0 $38.8 $22.2 NET EFFECTIVE SPREAD NET EFFECTIVE $0.0 $0.0 2015 2016 2017 2018 1Q19 YTD Net Effective Spread Core Earnings (1) Core earnings and net effective spread are non-GAAP measures. For more information on the use of these non-GAAP measures, please see page 3. For a reconciliation of core earnings to GAAP net income attributable to common stockholders and a reconciliation of net effective spread to GAAP net interest income, please refer to pages 24-25 of the Appendix. 13

FARMER MAC Quality Earnings Drives Strong Dividends Increased Target Payout Ratio of Core Earnings to ~35% $0.80 $0.70 $0.70 $0.60 $0.58 $0.50 Initiated New Dividend Policy: Target ~30% Payout Ratio of Core Earnings $0.40 $0.36 $ $ SHARE PER $0.30 $0.26 $0.20 $0.16 $0.14 $0.12 $0.10 $0.10 $0.05 $0.00 2011 2012 2013 2014 2015 2016 2017 2018 2019 Quarterly Dividend per Common Share 14

FARMER MAC Farmer Mac’s Attractive Yield and Durable Dividend 100% 4.0% 10% 90% 3.9% 3.9% 80% 3.9% % COMMON DIVIDEND YIELD DIVIDEND COMMON % 70% 65% 3.8% 60% 3.8% 50% 3.7% 40% 3.7% 3.7% 30% DIVIDEND PAYOUT VS. RETAINED EARNINGS VS. RETAINED PAYOUT DIVIDEND – 3.6% 20% 10% 3.6% EARNINGS 90% 35% 0% 3.5% REITs(1) Farmer Mac Dividend Payout % Retained Earnings % Common Dividend Yield (2) (1) Real Estate Investment Trusts (REITs) must distribute at least 90% of their investment company taxable income in the form of interest, dividends, or capital gains to its shareholders. (2) Common dividend yield is the average yield for REITs included in the S&P 500. Farmer Mac’s dividend yield is its first quarter 2019 common stock dividend annualized divided by quarter-end closing price. 15

FARMER MAC Proven, Rigorous Underwriting Industry-leading Credits are less Losses less likely credit requirements likely to default even in default – Total debt coverage ratio – Focus on repayment – Average LTV of 44% as of at least 1.25x capacity through of March 31, 2019 stressed inputs – LTVs average 40% to – Land values need to 45% on mortgages – Not a “lender of last decline >55% to purchased resort” generate losses – Minimum borrower net – Farm Credit – “Stress scenario” losses equity of 50% Administration is a of 17% to 48% strong safety and soundness regulator – Scrutinize property – 1980s crisis saw land (1) access, access to water, value declines of ~23% etc. (1) Source: USDA, National Agricultural Statistics Service (as of August 2015). 16

FARMER MAC Credit Consistently Outperforms 90-Day Delinquencies 3.00% 2.44% 2.50% 2.22% 2.04% Farmer Mac Historical 2.00% Average 1.00% 1.78% 1.59% 1.63% 1.50% 1.30% 1.35% 1.13% 1.15% 1.16%1.14% 1.08%1.15% 1.25% 1.00% 1.21% 0.75% 1.05% 0.63% 0.98% 0.71% 0.63%0.56% 0.93% 0.91% 0.50% 0.70% 0.73% 0.60% 0.55%0.58% 0.55% 0.56% 0.41% 0.35% 0.34% 0.37% 0.00% 0.21% FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 1Q19 Industry 90-Day Delinquencies(1) Farmer Mac 90-Day Delinquencies (Farm & Ranch Portfolio Only)(2) (1) Source: FDIC Call Report Data & Farm Credit Funding Corp Annual Information Statements – Non-accrual real estate loans and accruing loans that are 90 days or more past due made by commercial and Farm Credit System banks (as of December 2018). 17 (2) Delinquencies include loans held and loans underlying off-balance sheet Farm & Ranch 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.

FARMER MAC Industry-Leading Low Loss Rates Agricultural Lender Charge-off Rates 0.60% Banks Average 0.19% All Commercial Banks (1) 0.50% Loans and Leases Farm Credit System Average 0.96% Average 0.11% 0.40% Farmer Mac Average 0.02% 0.30% 0.20% OFFS AS % OFFS OF ASSETS - 0.10% CHARGE 0.00% 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 -0.10% (1) (2) Banks Farm Credit System(3) Farmer Mac (4) (1) Source: Board of Governors of the Federal Reserve System charge-off rates - https://www.federalreserve.gov/releases/chargeoff/ (2) Banks’ charge-off rate is a percentage of agricultural loan assets. (3) Source: Farm Credit Banks Funding Corporation Annual Information Statements; Farm Credit System’s charge-off rate is the percentage of total loans and guarantees. 18 (4) Farmer Mac’s charge-off rate is the percentage of total loans and guarantees.

FARMER MAC Historical Credit Losses Ag Storage & Processing Crops Permanent Plantings Livestock Part-Time Farm / Rural Housing $12 $10 $8 $6 $ IN MILLIONS NET LOSS / (GAIN) LOSS NET $4 $2 $0 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 -$2 & Prior BY YEAR OF ORIGINATION Farm & Ranch line of business has historical cumulative losses of 0.13%, or less than 1bp per year • Cumulative losses of $33 million on $25 billion of cumulative historical business volume Farmer Mac’s Rural Utilities, USDA Guarantees, and Institutional Credit lines of business have not had any credit losses to date 19

FARMER MAC Strong and Growing Equity Capital Base $800 25.0% $728 $742 $657 $169 $610 $183 20.0% $600 $564 $137 $143 $102 15.0% 13.4% 13.2% 12.7% 12.6% $400 10.5% $ IN MILLIONS CORE CAPITAL CORE 10.0% TIER TIER 1 RATIO (%) CAPITAL $200 5.0% $462 $467 $520 $545 $573 $0 0.0% 2015 2016 2017 2018 1Q19 Statutory Minimum Core Capital(1) Core Capital Amount Above Statutory Minimum Capital Tier 1 Capital Ratio (1) Statutory Minimum Core Capital defined as total stockholders’ equity less accumulated other comprehensive income. 20

Appendix

FARMER MAC Key Company Metrics ($ in thousands, except per share amounts) 1Q19 YTD 2018 2017 2016 2015 Core Earnings(1) $22,221 $84,047 $65,631 $53,481 $47,035 (1) Core Earnings per Diluted Share $2.06 $7.82 $6.08 $4.98 $4.16 Net Effective Spread ($) (1) (2) $38,801 $151,195 $141,303 $123,072 $117,428 Net Effective Spread (%)(1) (2) 0.89% 0.91% 0.91% 0.84% 0.85% Guarantee & Commitment Fees $5,419 $20,733 $20,350 $19,170 $17,155 Core Capital Above Statutory Minimum $169,100 $182,600 $136,800 $143,200 $102,400 Common Stock Dividends per Share $2.32 $1.44 $1.04 $0.64 Outstanding Business Volume $20,506,913 $19,724,524 $19,007,311 $17,399,475 $15,898,820 90-Day Delinquencies – Farm & Ranch 0.73% 0.37% 0.71% 0.34% 0.56% Charge-Offs $0 $17 $327 $130 $3,772 (3) Book Value per Share $50.27 $49.01 $42.59 $38.42 $33.66 Core Earnings Return on Equity 17% 17% 15% 13% 13% (1) Core earnings, core earnings per share, and net effective spread are non-GAAP measures. For more information on the use of these non-GAAP measures, please see page 3. For a reconciliation of core earnings to GAAP net income attributable to common stockholders and core earnings per share to earnings per common share, and a reconciliation of net effective spread to GAAP net interest income, please refer to pages 24-25 of the Appendix. (2) Periods prior to fourth quarter 2017 have been recast to reflect the revised methodology for calculating net effective spread that became effective in fourth quarter 2017, which includes the net effects of terminations or net settlements on financial derivatives in net effective spread. APPENDIX (3) Book Value per Share excludes accumulated other comprehensive income. 22

FARMER MAC Equity Capital Structure NYSE Dividend Shares Ticker Yield Outstanding CLASS A VOTING COMMON STOCK AGM.A 4.10%(1) 1.0 million • Ownership restricted to non-Farm Credit System financial institutions STOCK CLASS B VOTING COMMON STOCK -- -- 0.5 million • Ownership restricted to Farm Credit System institutions CLASS C NON-VOTING COMMON STOCK AGM 3.87%(1) 9.2 million • No ownership restrictions COMMON (2) SERIES A NON-CUMULATIVE PREFERRED STOCK AGM.PR.A 5.875% 2.4 million • Option to redeem at any time on or after January 17, 2018 • Redemption Value: $25 per share (2) STOCK SERIES B NON-CUMULATIVE PREFERRED STOCK AGM.PR.B 6.875% 3.0 million • Option to redeem at any time on or after April 17, 2019 • Redemption Value: $25 per share SERIES C FIXED-TO-FLOATING RATE NON-CUMULATIVE AGM.PR.C 6.000%(2) 3.0 million PREFERRED STOCK PREFERRED • Option to redeem at any time on or after July 18, 2024 • Redemption Value: $25 per share APPENDIX (1) Common stock dividend annualized divided by quarter-end closing price (2) Par value of annual dividend 23

FARMER MAC Reconciliation of Net Income to Core Earnings Core Earnings by Period Ended (in thousands) 1Q19 YTD 2018 2017 2016 2015 Net income attributable to common stockholders $ 21,874 $ 94,898 $ 71,300 $ 64,152 $ 47,371 Less reconciling items: Gains on undesignated financial derivatives due to fair value changes 2,240 7,959 10,218 8,585 1,859 (Losses)/Gains on hedging activities due to fair value changes (2,817) 4,449 (719) 5,043 9,065 Unrealized gains/(losses) on trading assets 44 81 (24) 1,460 1,220 Amortization of premiums/discounts and deferred gains on assets consolidated at fair value (16) (461) (1,327) (849) (1,319) Net effects of terminations or net settlements on financial derivatives and (1) hedging activities 110 1,708 2,674 2,178 (699) Loss on retirement of Farmer Mac II LLC Preferred Stock(2) - - - (8,147) Re-measurement of net deferred tax asset due to enactment of new tax legislation - (1,365) - - Income tax effect related to reconciling items 92 (2,885) (3,788) (5,746) (1,643) Sub-total (347) 10,851 5,669 10,671 336 Core earnings $ 22,221 $ 84,047 $ 65,631 $ 53,481 $ 47,035 (1) Periods prior to 2017 have been recast to reflect the revised methodology for calculating net effective spread that became effective in fourth quarter 2017, which includes APPENDIX the net effects of terminations or net settlements on financial derivatives in net effective spread. (2) Relates to the write-off of deferred issuance costs as a result of the retirement of Farmer Mac II LLC Preferred Stock. 24

FARMER MAC Reconciliation of Net Interest Income to Net Effective Spread For the Year Ended December 31, 1Q19 YTD 2018 2017 2016 2015 $ in thousands Dollars Yield Dollars Yield Dollars Yield Dollars Yield Dollars Yield Net interest income/yield $ 40,599 0.86% $ 174,436 0.96% $ 157,647 0.94% $ 140,274 0.90% $ 125,807 0.88% Net effects of consolidated trusts (1,905) 0.03% (6,757) 0.04% (6,236) 0.04% $ (4,302) 0.03% $ (3,078) 0.01% Expense related to undesignated financial derivatives (2,544) -0.06% (11,685) -0.07% (10,261) -0.07% (11,480) -0.07% (5,649) -0.04% Amortization of premiums/discounts on assets consolidated at fair value 23 0.00% 417 0.01% 1,191 0.01% 610 0.00% 2,300 0.02% Amortization of losses due to terminations or net settlements on financial derivatives and hedging activities (71) 0.00% (275) 0.00% (1,038) -0.01% (2,030) -0.02% (1,952) -0.02% Fair Value Changes on fair value hedge relationships 2,699 0.06% (4,941) -0.03% 0 0.00% 0 0.00% 0 0.00% Net Effective Spread $ 38,801 0.89% $ 151,195 0.91% $ 141,303 0.91% $ 123,072 0.84% $ 117,428 0.85% APPENDIX 25

FARMER MAC Core Earnings by Business Segment Core Earnings by Business Segment For Year Ended December 31, 2018 USDA Institutional Reconciling Consolidated Farm & Ranch Rural Utilities Corporate ($ in thousands) Guarantees Credit Adjustments Net Income Net interest income $ 62,951 $ 20,554 $ 12,505 $ 69,321 $ 9,105 $ - $ 174,436 (1) (2) (3) Less: reconciling items (9,889) (2,499) (922) (7,884) (2,047) 23,241 - Net effective spread 53,062 18,055 11,583 61,437 7,058 23,241 174,436 Guarantee and commitment fees (2) 17,976 797 1,599 360 - (6,756) 13,976 Other income/(expense)(3) 1,371 20 33 - (913) (2,747) (2,236) Non-interest income/(loss) 19,347 817 1,632 360 (913) (9,503) 11,740 Provision for loan losses (238) - - - - - (238) Release of reserve for losses (97) - - - - - (97) Other non-interest expense (19,026) (5,309) (3,062) (8,011) (14,411) - (49,819) Non-interest expense (4) (19,123) (5,309) (3,062) (8,011) (14,411) - (49,916) Core earnings before income taxes 53,048 13,563 10,153 53,786 (8,266) 13,738 (5) 136,022 Income tax (expense)/benefit (11,140) (2,848) (2,133) (11,295) 2,361 (2,887) (27,942) Core earnings before preferred stock dividends and attrbution of income to non-controlling interest 41,908 10,715 8,020 42,491 (5,905) 10,851 (5) 108,080 Preferred stock dividends - - - - (13,182) - (13,182) Segement core earnings/(losses) $ 41,908 $ 10,715 $ 8,020 $ 42,491 $ (19,087) $ 10,851 (5) $ 94,898 Total assets at carrying value $ 4,701,736 $ 2,240,906 $ 945,282 $ 8,089,410 $ 2,716,994 $ - $ 18,694,328 Total on- and off-balance sheet program assets at principal balance $ 7,233,972 $ 2,515,620 $ 1,592,115 $ 8,382,817 $ - $ - $ 19,724,524 (1) Excludes the amortization of premiums and discounts on assets consolidated at fair value, originally included in net interest income, to reflect core earnings amounts. (2) Includes the reclassification of interest income and interest expense from consolidated trusts owned by third parties to guarantee and commitment fees, to reflect management’s view that the net interest income Farmer Mac earns is effectively a guarantee fee. (3) Includes the reclassification of interest expense related to interest rate swaps not designated as hedges, which are included in “Gains/(losses) on financial derivatives and hedging activities” on the consolidated financials statements, to determine the effective funding cost for each operating segment. (4) Includes directly attributable costs and an allocation of indirectly attributable costs based on employee headcount. (5) Net adjustments to reconcile to the corresponding income measures: core earnings before income taxes reconciled to income before income taxes; core earnings before preferred stock dividends and APPENDIX attribution of income to non-controlling interest reconciled to net income; and segment core earnings reconciled to net income attributable to common stockholders. 26