What the changes say
- New risks emphasize specialized collateral losses, third-party cybersecurity incidents, employee continuity, regulatory change, and derivative collateral demands.
- Derivative hedge-accounting ineffectiveness was $6.8 million in 2025 versus $11.5 million in 2024; $252.7 million collateral was posted.
- Loan-purchase concentration fell: ten institutions represented 55% in 2025 versus 65% in 2024.
- AgVantage securities declined $0.1 billion in 2025 versus $1.5 billion in 2024.
What changed since the prior 10-K
New
- New
A decline in the value of collateral securing loans in our portfolio or a decline in the value of our borrowers could increase the probability of loss in the event of default, which could have a material adverse effect on our financial condition, results of operations, liquidity, or capital levels
Specialized or highly improved collateral may be difficult to sell after default, increasing undercollateralization and potential foreclosure losses.
- NewOperational Risk
information from unauthorized access and dissemination could have a negative effect on our business, operating results, or financial condition
Cybersecurity failures at loan servicers, cloud providers, law firms, and other third parties could expose sensitive financial and customer information.
- NewMarket Risk
$6.8 million and $11.5 million in 2025 and 2024, respectively, related to ineffectiveness in hedge accounting relationships
Adverse interest-rate movements could require rapid posting of cash or securities; $252.7 million was already posted as derivative collateral at year-end.
- NewRegulatory and Compliance Risk
consider engaging, curtail our current business activities, affect the value of assets that we hold, or otherwise adversely affect our business, results of operations, reputation, or financial condition
Financial-services regulation, including changing data-privacy and cybersecurity rules, could restrict counterparties, increase compliance costs, or reduce business opportunities.
- NewOther Risks
Our ability to attract and retain motivated and qualified employees is critical to the success of our business, and significant or sustained disruption in the continuity of our employees or executive leaders may materially adversely affect our business performance, operations, financial condition, or reputation
Difficulty retaining qualified employees or replacing executives could reduce productivity, disrupt strategy execution, and damage reputation or financial performance.
Reworded
- 92% rewrittenRegulatory and Compliance Risk
We and many of our business counterparties are subject to comprehensive government regulation, and changes to those laws and regulations could adversely affect our business, operating results, reputation, or financial condition
Recasts Farmer Mac in first person while retaining risks from congressional Charter changes, FCA/SEC oversight, compliance costs, and limits on products or opportunities.
Was: Farmer Mac and many of its business counterparties are subject to comprehensive government regulation, and changes to those laws and regulations could adversely affect Farmer Mac's business, operating results, reputation, or financial condition
- 80% rewrittenRegulatory and Compliance Risk
We are a GSE that may be materially and adversely affected by legislative or political developments
Adds that efforts to consolidate or reorganize the FCA could affect its organization and operation; otherwise mainly changes wording to first person.
Was: Farmer Mac is a GSE that may be materially and adversely affected by legislative or political developments
- 75% rewrittenOperational Risk
Our internal loan servicing function and reliance on third-party servicers exposes us to operational risks that could adversely affect our business, operating results, or financial condition
Replaces the prior focus on newly acquired servicing operations and limited experience with current internal servicing and lack of control over third-party processes.
Was: Farmer Mac’s internal loan servicing function and reliance on third-party servicers exposes Farmer Mac to operational risks that could adversely affect its business, operating results, or financial condition
- 74% rewrittenMarket Risk
Changes in interest rates relative to our management of interest rate risk through derivatives may cause volatility in financial results and capital levels and may adversely affect our net income, liquidity position, or operating results
Adds that derivative fair-value changes can affect core capital available for the statutory minimum capital requirement.
Was: Changes in interest rates relative to Farmer Mac's management of interest rate risk through derivatives may cause volatility in financial results and capital levels and may adversely affect Farmer Mac's net income, liquidity position, or operating results
- 70% rewritten
Political and other external factors outside of our or borrowers' control may impair borrowers' profitability and ability to repay their loans in our portfolio, which could have a material adverse effect on our financial condition, results of operations, liquidity, or capital levels
Specifically names tariffs and trade restrictions, replacing the prior reference to possible policy shifts accompanying changes in U.S. political leadership.
Was: Political and other external factors outside of Farmer Mac's or borrowers' control may impair borrowers' profitability and ability to repay their loans in Farmer Mac's portfolio, which could have a material adverse effect on Farmer Mac's financial condition, results of operations, liquidity, or capital levels
- 69% rewritten
We are exposed to counterparty risk on both our cleared and non-cleared swaps transactions that could materially and adversely affect our business, operating results, and financial condition
Adds that counterparty failures could be more damaging in volatile markets, when swaps may move against the company before repositioning.
Was: Farmer Mac is exposed to counterparty risk on both its cleared and non-cleared swaps transactions that could materially and adversely affect its business, operating results, and financial condition
- 69% rewrittenStrategic and Business Risk
The loss of business from key business counterparties or customers, including AgVantage counterparties, could weaken our business and decrease our revenues and profits
Loan-purchase concentration decreased to 55% from 65% for ten institutions, while the AgVantage securities decline narrowed to $0.1 billion from $1.5 billion.
Was: The loss of business from key business counterparties or customers, including AgVantage counterparties, could weaken Farmer Mac's business and decrease its revenues and profits
- 64% rewrittenOperational Risk
A deficiency, failure, interruption, or breach in our or our service providers' technology and information systems, infrastructure, or cybersecurity program, including the occurrence of a cybersecurity incident, could adversely affect our business, operating results, or financial condition
Adds that cybersecurity risk has increased with greater technology complexity and new technologies used by the company, customers, and service providers.
Was: A deficiency, failure, interruption, or breach in Farmer Mac's or its service providers' technology and information systems, infrastructure, or cybersecurity program, including the occurrence of a cybersecurity incident, could adversely affect Farmer Mac's business, operating results, or financial condition
- 62% rewrittenOperational Risk
If our management of risk based on model assumptions and output is not effective, our business, operating results, financial condition, or capital levels could be materially adversely affected
Was: If Farmer Mac's management of risk associated with its loan assets and investment securities based on model assumptions and output is not effective, its business, operating results, financial condition, or capital levels could be materially adversely affected
- 62% rewrittenStrategic and Business Risk
Our efforts to expand product offerings and services to our customers expose us to business, operational and other risks that could materially and adversely affect our business, operating results, or financial condition
Was: Farmer Mac's efforts to expand product offerings and services to its customers exposes Farmer Mac to operational risk that could materially and adversely affect its business, operating results, or financial condition
- 60% rewrittenFinancial Risk
Changes in the value or composition of our investment securities could adversely affect our business, operating results, financial condition, liquidity or capital levels
Was: Changes in the value or composition of Farmer Mac's investment securities could adversely affect Farmer Mac's business, operating results, financial condition, liquidity or capital levels
- 59% rewritten
Our Guaranteed Securities and LTSPCs expose us to significant contingent liabilities, and our ability to fulfill our obligations under our guarantees and LTSPCs may be limited
Was: Farmer Mac Guaranteed Securities and LTSPCs expose Farmer Mac to significant contingent liabilities, and Farmer Mac's ability to fulfill its obligations under its guarantees and LTSPCs may be limited
- 58% rewrittenRegulatory and Compliance Risk
Our capital requirements may change, and failure to meet those requirements could result in supervisory measures or our inability to declare dividends, or otherwise materially and adversely affect our business, operating results, or financial condition
Was: Farmer Mac's capital requirements may change, and failure to meet those requirements could result in supervisory measures or the inability of Farmer Mac to declare dividends, or otherwise materially and adversely affect Farmer Mac's business, operating results, or financial condition
- 57% rewrittenFinancial Risk
Incorrect estimates and assumptions by management in preparing financial statements could adversely affect our business, operating results, reported assets and liabilities, financial condition, reputation, or capital levels
Was: Incorrect estimates and assumptions by management in preparing financial statements could adversely affect Farmer Mac's business, operating results, reported assets and liabilities, financial condition, reputation, or capital levels
- 57% rewrittenFinancial Risk
The trading price for our Class C non-voting common stock may be volatile due to market influences, trading volume, the effects of equity awards for our officers, directors, and employees, or sales of significant amounts of the stock by large holders
Was: The trading price for Farmer Mac's Class C non-voting common stock may be volatile due to market influences, trading volume, the effects of equity awards for Farmer Mac's officers, directors, and employees, or sales of significant amounts of the stock by large holders
- 52% rewrittenOperational Risk
The inadequacy or failure of our operational systems, cybersecurity program, internal controls or processes, or infrastructure, or those of third parties, could have a material adverse effect on our business, operating results, or financial condition
Was: The inadequacy or failure of Farmer Mac's operational systems, cybersecurity program, internal controls or processes, or infrastructure, or those of third parties, could have a material adverse effect on Farmer Mac's business, operating results, or financial condition
- 52% rewrittenStrategic and Business Risk
An inability to access the equity and debt capital markets could have a material adverse effect on our business, operating results, financial condition, liquidity, and capital levels
Was: An inability to access the equity and debt capital markets could have a material adverse effect on Farmer Mac's business, operating results, financial condition, liquidity, and capital levels
- 52% rewrittenStrategic and Business Risk
Our business, operating results, financial condition, and capital levels may be materially and adversely affected by external factors that may affect the demand for our secondary market, the price or marketability of our products, or our ability to offer our products and services
Was: Farmer Mac's business, operating results, financial condition, and capital levels may be materially and adversely affected by external factors that may affect the demand for Farmer Mac's secondary market, the price or marketability of Farmer Mac's products, or Farmer Mac's ability to offer its products and services
- 46% rewrittenMarket Risk
We are exposed to interest rate risk that could materially and adversely affect our operating results or financial condition
Was: Farmer Mac is exposed to interest rate risk that could materially and adversely affect its operating results or financial condition
- 43% rewritten
Concentrations in our loan or investment portfolios, or to one or more borrowers or counterparties, may increase our exposure to credit risk, which could materially and adversely affect our business, operating results, and financial condition
Was: Concentrations in Farmer Mac's loan or investment portfolios, or to one or more borrowers or counterparties, may increase Farmer Mac's exposure to credit risk, which could materially and adversely affect its business, operating results, and financial condition
- 38% rewritten
Weather-related events or other natural or environmental disasters could have a material adverse effect on our business, operating results, or financial condition
Was: Weather-related events or other natural or environmental disasters could have a material adverse effect on Farmer Mac’s business, operating results, or financial condition
- 32% rewritten
Economic stress caused by disruptive global events, such as geopolitical instability, and natural or human-caused disasters, may materially and adversely affect our business, operations, operating results, financial condition, liquidity, or capital levels and may heighten other risk factors in this report
Was: Economic stress caused by disruptive global events, such as geopolitical instability, and natural or human-caused disasters, may materially and adversely affect Farmer Mac's business, operations, operating results, financial condition, liquidity, or capital levels and may heighten other risk factors in this report
All 28 risk factors
Headings as the filing states them, in filing order.
Other
- 01Credit and Counterparty Risk
- 02Economic stress caused by disruptive global events, such as geopolitical instability, and natural or human-caused disasters, may materially and adversely affect our business, operations, operating results, financial condition, liquidity, or capital levels and may heighten other risk factors in this report32% rewritten
- 03Weather-related events or other natural or environmental disasters could have a material adverse effect on our business, operating results, or financial condition38% rewritten
- 04Political and other external factors outside of our or borrowers' control may impair borrowers' profitability and ability to repay their loans in our portfolio, which could have a material adverse effect on our financial condition, results of operations, liquidity, or capital levels70% rewritten
- 05A decline in the value of collateral securing loans in our portfolio or a decline in the value of our borrowers could increase the probability of loss in the event of default, which could have a material adverse effect on our financial condition, results of operations, liquidity, or capital levelsNew
- 06Concentrations in our loan or investment portfolios, or to one or more borrowers or counterparties, may increase our exposure to credit risk, which could materially and adversely affect our business, operating results, and financial condition43% rewritten
- 07Our Guaranteed Securities and LTSPCs expose us to significant contingent liabilities, and our ability to fulfill our obligations under our guarantees and LTSPCs may be limited59% rewritten
- 08We are exposed to counterparty risk on both our cleared and non-cleared swaps transactions that could materially and adversely affect our business, operating results, and financial condition69% rewritten
Strategic and Business Risk
- 09Our business, operating results, financial condition, and capital levels may be materially and adversely affected by external factors that may affect the demand for our secondary market, the price or marketability of our products, or our ability to offer our products and services52% rewritten
- 10An inability to access the equity and debt capital markets could have a material adverse effect on our business, operating results, financial condition, liquidity, and capital levels52% rewritten
- 11The loss of business from key business counterparties or customers, including AgVantage counterparties, could weaken our business and decrease our revenues and profits69% rewritten
- 12Our efforts to expand product offerings and services to our customers expose us to business, operational and other risks that could materially and adversely affect our business, operating results, or financial condition62% rewritten
Operational Risk
- 13The inadequacy or failure of our operational systems, cybersecurity program, internal controls or processes, or infrastructure, or those of third parties, could have a material adverse effect on our business, operating results, or financial condition52% rewritten
- 14Our internal loan servicing function and reliance on third-party servicers exposes us to operational risks that could adversely affect our business, operating results, or financial condition75% rewritten
- 15A deficiency, failure, interruption, or breach in our or our service providers' technology and information systems, infrastructure, or cybersecurity program, including the occurrence of a cybersecurity incident, could adversely affect our business, operating results, or financial condition64% rewritten
- 16information from unauthorized access and dissemination could have a negative effect on our business, operating results, or financial conditionNew
- 17If our management of risk based on model assumptions and output is not effective, our business, operating results, financial condition, or capital levels could be materially adversely affected62% rewritten
Market Risk
- 18We are exposed to interest rate risk that could materially and adversely affect our operating results or financial condition46% rewritten
- 19Changes in interest rates relative to our management of interest rate risk through derivatives may cause volatility in financial results and capital levels and may adversely affect our net income, liquidity position, or operating results74% rewritten
- 20$6.8 million and $11.5 million in 2025 and 2024, respectively, related to ineffectiveness in hedge accounting relationshipsNew
Financial Risk
- 21Incorrect estimates and assumptions by management in preparing financial statements could adversely affect our business, operating results, reported assets and liabilities, financial condition, reputation, or capital levels57% rewritten
- 22Changes in the value or composition of our investment securities could adversely affect our business, operating results, financial condition, liquidity or capital levels60% rewritten
- 23The trading price for our Class C non-voting common stock may be volatile due to market influences, trading volume, the effects of equity awards for our officers, directors, and employees, or sales of significant amounts of the stock by large holders57% rewritten
Regulatory and Compliance Risk
- 24We are a GSE that may be materially and adversely affected by legislative or political developments80% rewritten
- 25We and many of our business counterparties are subject to comprehensive government regulation, and changes to those laws and regulations could adversely affect our business, operating results, reputation, or financial condition92% rewritten
- 26consider engaging, curtail our current business activities, affect the value of assets that we hold, or otherwise adversely affect our business, results of operations, reputation, or financial conditionNew
- 27Our capital requirements may change, and failure to meet those requirements could result in supervisory measures or our inability to declare dividends, or otherwise materially and adversely affect our business, operating results, or financial condition58% rewritten
Other Risks
- 28Our ability to attract and retain motivated and qualified employees is critical to the success of our business, and significant or sustained disruption in the continuity of our employees or executive leaders may materially adversely affect our business performance, operations, financial condition, or reputationNew
Other Federal Agricultural Mortgage 10-Ks
- FY2024 10-K risk factors23 risks
Farmer Mac faces risks from agricultural credit concentrations, weather and climate volatility, capital market access, and comprehensive government regulation as a GSE.
Filed Feb 21, 2025
About this page
The headings are the filing's own. The one-line readings and the overview are automated and can be wrong: read Item 1A of the 10-K for the exact wording.