Company: AGM-PH
Filing Date: 2025-02-21
Form Type: 10-K
Source: 0000845877-25-000033
Chunk: 12

Company: FEDERAL AGRICULTURAL MORTGAGE CORP
Filing Date: 2025-02-21
Form: 10-K
Item: Item 8
Chunk 12
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 with AgVantage, Farmer Mac refers to these securities as "Farmer Mac Guaranteed Securities");•servicing (including as master servicer) eligible loans purchased or securitized by Farmer Mac; and•providing long-term standby purchase commitments ("LTSPCs") for eligible loans.Farmer Mac conducts its secondary market activities through two lines of business — Agricultural Finance and Infrastructure Finance. For more information about those lines of business and the segments within them, see Note 14 - Business Segments.

2.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The accounting and reporting policies of Farmer Mac conform with accounting principles generallyaccepted in the United States of America ("generally accepted accounting principles" or "GAAP"). Thepreparation of consolidated financial statements in conformity with generally accepted accountingprinciples requires management to make certain estimates and assumptions that affect the reportedamounts of assets and liabilities and disclosures of contingent assets and liabilities as of the date of theconsolidated financial statements and the reported amounts of income and expenses during the reportingperiod. Actual results could differ from those estimates. The following are the significant accountingpolicies that Farmer Mac follows in preparing and presenting its consolidated financial statements:

(a) Principles of Consolidation

The consolidated financial statements include the accounts of Farmer Mac and its two subsidiaries during the year: (1) Farmer Mac Mortgage Securities Corporation, whose principal activities are to facilitate the purchase and issuance of Farmer Mac Guaranteed Securities; and (2) Farmer Mac II LLC, which operated 

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substantially all of the business related to the USDA Securities included in the Agricultural Finance line of business from 2010 through 2023 and continues to hold a  "run-off" portfolio of USDA Securities. The consolidated financial statements also include the accounts of Variable Interest Entities ("VIEs") in which Farmer Mac determined itself to be the primary beneficiary.

(b)Cash and Cash Equivalents

Farmer Mac considers cash on hand and highly liquid investment securities with maturities at the time of purchase of three months or less to be cash equivalents.

(c)Investment Securities, Farmer Mac Guaranteed Securities, and USDA Securities

Securities for which Farmer Mac has the intent and ability to hold to maturity are classified as held-to-maturity and are carried at amortized cost. Securities for which Farmer Mac does not have the positive intent and ability to hold to maturity are classified as available-for-sale or trading and are carried at estimated fair value. Unrealized gains and losses on available-for-sale securities are reported