Notes Payable

9 Months Ended

Sep. 30, 2023

Debt Disclosure [Abstract]

NOTES PAYABLE

NOTES PAYABLE

Farmer Mac's borrowings consist of discount notes and medium-term notes, both of which are unsecured general obligations of Farmer Mac. Discount notes generally have original maturities of 1 year or less, whereas medium-term notes generally have maturities of 0.5 years to 25.0 years.

The following tables set forth information related to Farmer Mac's borrowings as of September 30, 2023 and December 31, 2022:

Table 7.1

	September 30, 2023
	Outstanding as of September 30				Average Outstanding During the Quarter
	Amount		Weighted- Average Rate		Amount		Weighted- Average Rate
	(dollars in thousands)
Due within one year:
Discount notes	$	1,535,856	5.30	%	$	942,297	4.92	%
Medium-term notes	947,466		4.75	%	2,085,249		4.00	%
Current portion of medium-term notes	5,472,893		2.49	%
Total due within one year	$	7,956,215	3.30	%
Due after one year:
Medium-term notes due in:
Two years	$	5,231,168	3.05	%
Three years	3,243,230		2.21	%
Four years	3,297,724		2.64	%
Five years	2,306,430		4.07	%
Thereafter	3,567,720		2.80	%
Total due after one year	$	17,646,272	2.90	%
Total principal net of discounts	$	25,602,487	3.03	%
Hedging adjustments	(478,942)
Total	$	25,123,545

	December 31, 2022
	Outstanding as of December 31				Average Outstanding During the Year
	Amount		Weighted- Average Rate		Amount		Weighted- Average Rate
	(dollars in thousands)
Due within one year:
Discount notes	$	565,578	3.91	%	$	1,325,026	0.96	%
Medium-term notes	2,547,733		3.54	%	1,442,932		2.11	%
Current portion of medium-term notes	4,920,864		1.49	%
Total due within one year	$	8,034,175	2.31	%
Due after one year:
Medium-term notes due in:
Two years	$	4,072,740	1.71	%
Three years	3,506,480		2.10	%
Four years	2,967,625		1.44	%
Five years	2,361,197		3.12	%
Thereafter	4,057,982		2.60	%
Total due after one year	$	16,966,024	2.15	%
Total principal net of discounts	$	25,000,199	2.20	%
Hedging adjustments	(531,086)
Total	$	24,469,113

The maximum amount of Farmer Mac's discount notes outstanding at any month end during the nine months ended September 30, 2023 and 2022 was $1.5 billion and $2.2 billion, respectively.

Callable medium-term notes give Farmer Mac the option to redeem the debt at par value on a specified call date or at any time on or after a specified call date. The following table summarizes by maturity date the amounts and costs for Farmer Mac debt callable in 2023 as of September 30, 2023:

Table 7.2

Debt Callable in 2023 as of September 30, 2023, by Maturity
	Amount		Weighted-Average Rate
	(dollars in thousands)
Maturity:
2024	$	816,830	3.66	%
2025	664,046		2.33	%
2026	1,012,989		1.57	%
2027	560,204		2.27	%
Thereafter	1,161,379		2.51	%
Total	$	4,215,448	2.45	%

The following schedule summarizes the earliest interest rate reset date, or debt maturities, of total borrowings outstanding as of September 30, 2023, including callable and non-callable medium-term notes, assuming callable notes are redeemed at the initial call date:

Table 7.3

	Earliest Interest Rate Reset Date, or Debt Maturities, of Borrowings Outstanding
	Amount		Weighted-Average Rate
	(dollars in thousands)
Debt with interest rate resets, or debt maturities in:
2023	$	5,468,108	4.57	%
2024	5,454,586		2.62	%
2025	4,222,333		2.60	%
2026	3,319,847		1.81	%
2027	2,573,406		3.14	%
Thereafter	4,564,207		2.87	%
Total principal net of discounts	$	25,602,487	3.03	%

During the nine months ended September 30, 2023 and 2022, Farmer Mac called $111.0 million and $26.0 million of callable medium-term notes, respectively.

Authority to Borrow from the U.S. Treasury

Farmer Mac's statutory charter authorizes it, upon satisfying certain conditions, to borrow up to $1.5 billion from the U.S. Treasury through the issuance of debt obligations to the U.S. Treasury. Any funds borrowed from the U.S. Treasury may be used solely to fulfill Farmer Mac's guarantee obligations. Any debt obligations issued by Farmer Mac under this authority would bear interest at a rate determined by the U.S. Treasury, taking into consideration the average rate on outstanding marketable obligations of the United States as of the last day of the last calendar month ending before the date of the purchase of the obligations from Farmer Mac. The charter requires Farmer Mac to repurchase any of its debt obligations held by the U.S. Treasury within a reasonable time. As of September 30, 2023, Farmer Mac had not used this borrowing authority.

Gains on Repurchases of Outstanding Debt

No outstanding debt repurchases were made in the nine months ended September 30, 2023 and 2022.