FEDERAL AGRICULTURAL MORTGAGE CORPAGM
FEDERAL AGRICULTURAL MORTGAGE CORP Segments Disclosure
BUSINESS SEGMENT REPORTING
Farmer Mac has seven reportable segments: Farm & Ranch, Corporate AgFinance, Power & Utilities, Broadband Infrastructure, Renewable Energy, Funding, and Investments.
The Farm & Ranch segment includes the financial results of the USDA Securities portfolio, Farm & Ranch loans, and AgVantage securities secured by Farm & Ranch loans. The Corporate AgFinance segment includes loans and AgVantage securities to larger and more complex farming operations, agribusinesses focused on food and fiber processing, and other supply chain production.
The Power & Utilities segment includes loans to rural electric generation and transmission cooperatives and distribution cooperatives, as well as AgVantage securities secured by those types of loans. The Broadband Infrastructure segment includes loans to rural fiber, cable/broadband, tower, wireless, local exchange carrier, and data center projects. The Renewable Energy segment includes rural electric solar, wind, and gas projects.
The Funding segment includes the financial results of Farmer Mac's debt issuance, hedging, asset/liability management, and capital allocation strategies. Farmer Mac allocates interest expense to each of the other segments using a funds transfer pricing process. The Funding segment reflects the benefits and costs from the execution of Farmer Mac's funding and hedging strategies.
The Investments segment includes the financial results of Farmer Mac's investment portfolio, which is held for liquidity purposes. Interest expense is allocated to the Investments segment using the same funds transfer pricing process that is used to allocate interest expense to the other segments.
The following table presents Farmer Mac's seven segments:
| Agricultural Finance | Infrastructure Finance | Treasury | ||||||||||||||||||
| Farm & Ranch | Corporate AgFinance | Power & Utilities | Broadband Infrastructure | Renewable Energy | Funding | Investments | ||||||||||||||
The Chief Executive Officer serves as the Chief Operating Decision Maker ("CODM"). The CODM reviews segment core earnings to make decisions about allocating resources and to assess the financial performance of the segments. The main difference between core earnings and net income is the exclusion of 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. Another difference is that core earnings excludes specified infrequent or unusual transactions that are not indicative of future operating results and that may not reflect the trends and economic financial performance of Farmer Mac's core business. The CODM also looks at changes in the segments' on- and off-balance sheet unpaid principal balances to assess the performance of the segments.
The following tables present segment core earnings and assets for the years ended December 31, 2025, 2024, and 2023.
Table 12.1
| Core Earnings by Business Segment | |||||||||||||||||||||||||||||||||||||||||||||||
For the Year Ended December 31, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||
| Agricultural Finance | Infrastructure Finance | Treasury | |||||||||||||||||||||||||||||||||||||||||||||
| Farm & Ranch | Corporate AgFinance | Power & Utilities | Broadband Infrastructure | Renewable Energy | Funding | Investments | Total | ||||||||||||||||||||||||||||||||||||||||
| (in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||
Interest income | $ | 614,331 | $ | 102,439 | $ | 273,500 | $ | 52,109 | $ | 104,276 | $ | 137,024 | $ | 328,568 | $ | 1,612,247 | |||||||||||||||||||||||||||||||
Interest expense(1) | (469,656) | (67,542) | (250,362) | (34,622) | (76,212) | (1,523) | (321,596) | (1,221,513) | |||||||||||||||||||||||||||||||||||||||
Less: reconciling adjustments(2)(3) | (4,060) | — | (104) | — | — | (3,758) | 229 | (7,693) | |||||||||||||||||||||||||||||||||||||||
| Net effective spread | 140,615 | 34,897 | 23,034 | 17,487 | 28,064 | 131,743 | 7,201 | 383,041 | |||||||||||||||||||||||||||||||||||||||
Guarantee and commitment fees(3) | 18,224 | 917 | 850 | 2,452 | 1,349 | — | — | 23,792 | |||||||||||||||||||||||||||||||||||||||
Other income/(expense) | 1,849 | 440 | (7) | — | 8 | — | (128) | 2,162 | |||||||||||||||||||||||||||||||||||||||
(Provision for)/release of losses | (8,619) | (15,325) | 84 | (5,505) | (3,574) | — | 26 | (32,913) | |||||||||||||||||||||||||||||||||||||||
Operating expenses(1) | (27,664) | (10,372) | (4,575) | (5,103) | (6,633) | (11,644) | (3,370) | (69,361) | |||||||||||||||||||||||||||||||||||||||
Income tax expense | (26,120) | (2,220) | (4,069) | (1,960) | (4,035) | (25,222) | (784) | (64,410) | |||||||||||||||||||||||||||||||||||||||
Segment core earnings | $ | 98,285 | $ | 8,337 | $ | 15,317 | $ | 7,371 | $ | 15,179 | $ | 94,877 | $ | 2,945 | $ | 242,311 | |||||||||||||||||||||||||||||||
Reconciliation to net income: | |||||||||||||||||||||||||||||||||||||||||||||||
Net effects of derivatives and trading securities | $ | (679) | |||||||||||||||||||||||||||||||||||||||||||||
Unallocated (expenses)/income | (50,331) | ||||||||||||||||||||||||||||||||||||||||||||||
| Income tax effect related to reconciling items | 16,114 | ||||||||||||||||||||||||||||||||||||||||||||||
Net income | $ | 207,415 | |||||||||||||||||||||||||||||||||||||||||||||
Total Assets: | |||||||||||||||||||||||||||||||||||||||||||||||
Total on- and off-balance sheet segment assets at principal balance | $ | 19,564,916 | $ | 1,950,536 | $ | 7,860,622 | $ | 1,532,206 | $ | 2,443,289 | $ | — | $ | — | $ | 33,351,569 | |||||||||||||||||||||||||||||||
Off-balance sheet assets under management | (5,765,446) | ||||||||||||||||||||||||||||||||||||||||||||||
Unallocated assets | 7,784,034 | ||||||||||||||||||||||||||||||||||||||||||||||
Total assets on the Consolidated Balance Sheets | $ | 35,370,157 | |||||||||||||||||||||||||||||||||||||||||||||
(1)The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM.
(2)Includes the amortization of premiums and discounts on assets consolidated at fair value, originally included in interest income, to reflect core earnings amounts; the reclassification of interest expense related to interest rate swaps not designated as hedges, which are included in "(Losses)/gains on financial derivatives" on the consolidated financial statements, to determine the effective funding cost for each operating segment; and excludes the fair value changes of financial derivatives and the corresponding assets or liabilities designated in fair value hedge accounting relationships.
(3)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.
| Core Earnings by Business Segment | |||||||||||||||||||||||||||||||||||||||||||||||
For the Year Ended December 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||
| Agricultural Finance | Infrastructure Finance | Treasury | |||||||||||||||||||||||||||||||||||||||||||||
| Farm & Ranch | Corporate AgFinance | Power & Utilities | Broadband Infrastructure | Renewable Energy | Funding | Investments | Total | ||||||||||||||||||||||||||||||||||||||||
| (in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||
Interest income | $ | 615,016 | $ | 100,820 | $ | 260,636 | $ | 38,225 | $ | 54,188 | $ | 224,390 | $ | 310,241 | $ | 1,603,516 | |||||||||||||||||||||||||||||||
Interest expense(1) | (475,248) | (70,695) | (240,600) | (27,282) | (40,471) | (89,698) | (305,655) | (1,249,649) | |||||||||||||||||||||||||||||||||||||||
Less: reconciling adjustments(2)(3) | (4,458) | — | (49) | — | — | (9,796) | — | (14,303) | |||||||||||||||||||||||||||||||||||||||
| Net effective spread | 135,310 | 30,125 | 19,987 | 10,943 | 13,717 | 124,896 | 4,586 | 339,564 | |||||||||||||||||||||||||||||||||||||||
Guarantee and commitment fees(3) | 17,695 | 571 | 966 | 464 | 625 | — | — | 20,321 | |||||||||||||||||||||||||||||||||||||||
Other income/(expense) | 3,167 | (2,055) | — | — | — | — | 1,076 | 2,188 | |||||||||||||||||||||||||||||||||||||||
(Provision for)/release of losses | (1,147) | (6,850) | 274 | 1,469 | (5,236) | — | — | (11,490) | |||||||||||||||||||||||||||||||||||||||
Operating expenses(1) | (24,741) | (7,905) | (4,281) | (3,666) | (4,848) | (10,855) | (3,108) | (59,404) | |||||||||||||||||||||||||||||||||||||||
Income tax expense | (27,360) | (2,916) | (3,559) | (1,934) | (894) | (23,949) | (536) | (61,148) | |||||||||||||||||||||||||||||||||||||||
Segment core earnings | $ | 102,924 | $ | 10,970 | $ | 13,387 | $ | 7,276 | $ | 3,364 | $ | 90,092 | $ | 2,018 | $ | 230,031 | |||||||||||||||||||||||||||||||
Reconciliation to net income: | |||||||||||||||||||||||||||||||||||||||||||||||
| Net effects of derivatives and trading securities | $ | 13,141 | |||||||||||||||||||||||||||||||||||||||||||||
Unallocated (expense)/income | (46,217) | ||||||||||||||||||||||||||||||||||||||||||||||
| Income tax effect related to reconciling items | 10,238 | ||||||||||||||||||||||||||||||||||||||||||||||
| Net income | $ | 207,193 | |||||||||||||||||||||||||||||||||||||||||||||
Total Assets: | |||||||||||||||||||||||||||||||||||||||||||||||
Total on- and off-balance sheet segment assets at principal balance | $ | 18,606,968 | $ | 1,887,705 | $ | 6,809,366 | $ | 802,466 | $ | 1,416,525 | $ | — | $ | — | $ | 29,523,030 | |||||||||||||||||||||||||||||||
Off-balance sheet assets under management | (4,981,285) | ||||||||||||||||||||||||||||||||||||||||||||||
Unallocated assets | 6,782,997 | ||||||||||||||||||||||||||||||||||||||||||||||
Total assets on the Consolidated Balance Sheets | $ | 31,324,742 | |||||||||||||||||||||||||||||||||||||||||||||
(1)The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM.
(2)Includes the amortization of premiums and discounts on assets consolidated at fair value, originally included in interest income, to reflect core earnings amounts; the reclassification of interest expense related to interest rate swaps not designated as hedges, which are included in "(Losses)/gains on financial derivatives" on the consolidated financial statements, to determine the effective funding cost for each operating segment; and excludes the fair value changes of financial derivatives and the corresponding assets or liabilities designated in fair value hedge accounting relationships.
(3)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.
| Core Earnings by Business Segment | |||||||||||||||||||||||||||||||||||||||||||||||
For the Year Ended December 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||
| Agricultural Finance | Infrastructure Finance | Treasury | |||||||||||||||||||||||||||||||||||||||||||||
| Farm & Ranch | Corporate AgFinance | Power & Utilities | Broadband Infrastructure | Renewable Energy | Funding | Investments | Total | ||||||||||||||||||||||||||||||||||||||||
| (in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||
Interest income | $ | 559,730 | $ | 92,335 | $ | 232,106 | $ | 30,299 | $ | 18,923 | $ | 200,264 | $ | 258,631 | $ | 1,392,288 | |||||||||||||||||||||||||||||||
Interest expense(1) | (422,651) | (61,111) | (215,763) | (21,455) | (14,275) | (71,849) | (257,637) | (1,064,741) | |||||||||||||||||||||||||||||||||||||||
Less: reconciling adjustments(2)(3) | (4,179) | — | (168) | — | — | 3,594 | 186 | (567) | |||||||||||||||||||||||||||||||||||||||
| Net effective spread | 132,900 | 31,224 | 16,175 | 8,844 | 4,648 | 132,009 | 1,180 | 326,980 | |||||||||||||||||||||||||||||||||||||||
Guarantee and commitment fees(3) | 17,415 | 283 | 1,090 | 43 | 97 | — | — | 18,928 | |||||||||||||||||||||||||||||||||||||||
Other income | 2,952 | 35 | — | — | — | 3 | 29 | 3,019 | |||||||||||||||||||||||||||||||||||||||
(Provision for)/release of losses | (507) | (207) | 4,117 | (4,324) | (219) | — | 4 | (1,136) | |||||||||||||||||||||||||||||||||||||||
Operating expenses(1) | (23,306) | (5,540) | (3,553) | (2,415) | (3,382) | (11,037) | (3,184) | (52,417) | |||||||||||||||||||||||||||||||||||||||
| Income tax (expense)/benefit | (27,183) | (5,418) | (3,746) | (453) | (238) | (25,405) | 414 | (62,029) | |||||||||||||||||||||||||||||||||||||||
Segment core earnings | $ | 102,271 | $ | 20,377 | $ | 14,083 | $ | 1,695 | $ | 906 | $ | 95,570 | $ | (1,557) | $ | 233,345 | |||||||||||||||||||||||||||||||
Reconciliation to net income: | |||||||||||||||||||||||||||||||||||||||||||||||
| Net effects of derivatives and trading securities | $ | 1,954 | |||||||||||||||||||||||||||||||||||||||||||||
Unallocated (expense)/income | (44,227) | ||||||||||||||||||||||||||||||||||||||||||||||
| Income tax effect related to reconciling items | 8,931 | ||||||||||||||||||||||||||||||||||||||||||||||
| Net income | $ | 200,003 | |||||||||||||||||||||||||||||||||||||||||||||
Total Assets: | |||||||||||||||||||||||||||||||||||||||||||||||
Total on- and off-balance sheet segment assets at principal balance | $ | 18,808,801 | $ | 1,693,979 | $ | 6,979,570 | $ | 501,153 | $ | 487,521 | $ | — | $ | — | $ | 28,471,024 | |||||||||||||||||||||||||||||||
Off-balance sheet assets under management | (4,710,199) | ||||||||||||||||||||||||||||||||||||||||||||||
Unallocated assets | 5,763,557 | ||||||||||||||||||||||||||||||||||||||||||||||
Total assets on the Consolidated Balance Sheets | $ | 29,524,382 | |||||||||||||||||||||||||||||||||||||||||||||
(1)The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM.
(2)Includes the amortization of premiums and discounts on assets consolidated at fair value, originally included in interest income, to reflect core earnings amounts; the reclassification of interest expense related to interest rate swaps not designated as hedges, which are included in "(Losses)/gains on financial derivatives" on the consolidated financial statements, to determine the effective funding cost for each operating segment; and excludes the fair value changes of financial derivatives and the corresponding assets or liabilities designated in fair value hedge accounting relationships.
(3)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.Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 19, 2026 | Showing above |
| 2024 | Feb 21, 2025 | |
| 2023 | Feb 23, 2024 | |
| 2022 | Feb 24, 2023 | |
| 2021 | Feb 28, 2022 | |
| 2020 | Feb 25, 2021 | |
| 2019 | Feb 25, 2020 | |
| 2018 | Feb 21, 2019 | |
| 2017 | Mar 8, 2018 | |
| 2016 | Mar 9, 2017 | |
| 2015 | Mar 10, 2016 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.