    [Appendix]
    [Government-Sponsored Enterprises]
    [From the U.S. Government Printing Office, www.gpo.gov]

        This chapter contains descriptions of the data on the Government-
    sponsored enterprises listed below. These enterprises were established
    and chartered by the Federal Government for public policy purposes. They
    are not included in the Federal Budget because they are private
    companies, and their securities are not backed by the full faith and
    credit of the Federal Government. However, because of their public
    purpose, detailed statements of financial condition are presented, to
    the extent such information is available, on a basis that is as
    consistent as practicable with the basis for the budget data of
    Government agencies. These statements are not reviewed by the President;
    they are presented as submitted by the enterprises.

        --The Federal National Mortgage Association and the Federal Home
            Loan Mortgage Corporation provide assistance to the secondary
            market for residential mortgages.

        --The Federal Home Loan Banks assist thrift institutions, banks,
            insurance companies, and credit unions in providing financing
            for housing and community development.

        --Institutions of the Farm Credit System, which include the
            Agricultural Credit Bank and Farm Credit Banks, provide
            financial assistance to agriculture. They are regulated by the
            Farm Credit Administration.

        --The Federal Agricultural Mortgage Corporation, under the
            regulation of the Farm Credit Administration, provides a
            secondary mortgage market for agricultural real estate and rural
            housing loans as well as for farm and business loans guaranteed
            by the U.S. Department of Agriculture.

                      FEDERAL NATIONAL MORTGAGE ASSOCIATION

                               Portfolio Programs

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 99-2500-0-3-371      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
    1131  Direct loan obligations...........
                                               ---------   ---------  ----------
    1150  Total direct loan obligations.....
    ----------------------------------------------------------------------------

        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........
          Disbursements:

    1231    Direct loan disbursements.......
    1232    Purchase of loans assets........
    1251  Repayments: Repayments and
            prepayments.....................
    1264  Write-offs for default: Other
            adjustments, net................
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........
    ---------------------------------------------------------------------------
        Note: Consistent with Government-wide practice for GSEs, information for
    2007 and 2008 was not required to be collected.

        The Federal National Mortgage Association (Fannie Mae) is a
    Government-sponsored enterprise (GSE) in the housing finance market. The
    Administration has announced a proposal to strengthen regulation of all
    the housing GSEs, including Fannie Mae.
        As a housing GSE, Fannie Mae is a Federally chartered, privately
    owned company with a public mission to provide stability and to increase
    the liquidity of the residential mortgage market and to help increase
    the availability of mortgage credit to low- and moderate-income families
    and in underserved areas. Fannie Mae engages primarily in two forms of
    business: guaranteeing residential mortgage securities and investing in
    portfolios of residential mortgages.
        The Federal Government has equipped Fannie Mae with certain
    advantages over wholly private firms in carrying out these activities.
    These include an exemption from State and local taxes (except real
    property taxes), and an exemption of its debt and mortgage securities
    from Securities and Exchange Commission registration requirements. An
    additional advantage is that the Secretary of the Treasury may purchase
    and hold up to $2.25 billion of securities issued by Fannie Mae under
    terms and conditions and at prices determined by the Secretary to be
    appropriate. Securities guaranteed and debt issued by Fannie Mae are
    solely the corporation's obligations and are not backed by the full
    faith and credit of the U.S. Government. The common stock of the
    corporation is owned by the public, is fully transferable, and trades on
    the New York, Midwest, and Pacific stock exchanges.
        Fannie Mae was established in 1938 to assist private markets in
    providing a steady supply of funds for housing. Fannie Mae was
    originally a subsidiary of the Reconstruction Finance Corporation and
    was permitted to purchase only loans insured by the Federal Housing
    Administration (FHA). In 1954, Fannie Mae was restructured as a mixed
    ownership (part government, part private) corporation. Legislation
    directed the sale of the Government's remaining interest in Fannie Mae
    in 1968 and completed the transformation to private shareholder
    ownership in 1970. Using the proceeds from the sale of subordinated
    debentures, Fannie Mae paid the Treasury $216 million for the
    Government's preferred stock, which was retired, and for the Treasury's
    interest in the corporation's earned surplus. As a result, the
    corporation was taken off the Federal Budget.
        In 1992, the Congress reaffirmed and clarified Fannie Mae's role in
    the housing finance system through charter act amendments included in
    the Federal Housing Enterprises Financial Safety and Soundness Act of
    1992 (Act). Fannie Mae's charter purposes, as amended by the Act, are:
    ``to provide stability in the secondary market for residential
    mortgages; respond appropriately to the private capital market; provide
    ongoing assistance to the secondary market for residential mortgages
    (including activities relating to mortgages on housing for low- and
    moderate-income families involving a reasonable economic return that may
    be less than the return earned on other activities); and promote access
    to mortgage credit throughout the Nation (including central cities,
    rural areas, and underserved areas) by increasing the liquidity of
    mortgage investments and improving the distribution of investment
    capital for residential mortgage financing.'' For additional discussion
    and analyses of Fannie Mae, please see the Analytical Perspectives
    volume of the Budget documents.

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   99-2500-0-3-371

    2005 actual

    2006 actual

    -----------------------------------------------------------------------------------------------
        ASSETS:
    1101

    Fund balances

          Investments in US securities:

    1102

    Treasury securities, par

    1104

    Other

          Net value of assets related to
              direct loans receivable and
              acquired defaulted guaranteed
              loans receivable:

    1601

    Direct loans (net of discount)

    1602

    Federal Agencies

    [[Page 1186]]

    1603

    Allowance for estimated uncollectible loans and interest (-)

    1699

    Value of assets related to direct loans

    1801

    Cash and other monetary assets

    1803

    Property, plant and equipment, net

    1999

    Total assets

        LIABILITIES:
    2101

    Accounts payable

    2102

    Accrued interest payable

    2105

    Other

    2203

    Debt

    2204

    Estimated liability for loan guarantees

    2206

    Pension and other actuarial liabilities

    2207

    Subtotal, Federal taxes payable

    2999

    Total liabilities

        NET POSITION:
    3300

    Cumulative results of operations

    3300

    Change in Stockholder Equity

    3999

    Total net position

    4999

    Total liabilities and net position

    -----------------------------------------------------------------------------------------------

                           Mortgage-Backed Securities

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 99-2501-0-3-371      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
    1131  Direct loan obligations...........
                                               ---------   ---------  ----------
    1150  Total direct loan obligations.....
    ----------------------------------------------------------------------------

        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........
    1231  Disbursements: Direct loan
            disbursements...................
    1251  Repayments: Repayments and
            prepayments.....................
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........
    ---------------------------------------------------------------------------
        Note: Consistent with Government-wide practice for GSEs, information for
    2007 and 2008 was not required to be collected.

        According to accounting practices for private corporations, the
    mortgages in the pools of loans supporting the mortgage-backed
    securities are considered to be owned by the holders of these
    securities. Consequently, on the books of Fannie Mae, these mortgages
    are not considered assets and the securities outstanding are not
    considered liabilities. However, the concepts of the budget of the U.S.
    Government consider these mortgages and mortgage-backed securities to be
    assets and liabilities, respectively, of Fannie Mae. For the purposes of
    this document, therefore, they are presented as assets and liabilities
    in the accompanying schedules. On the schedule of Status of Direct Loans
    for mortgage-backed securities, the items labeled ``New loans'' and
    ``Recoveries: Repayments and prepayments'' are budgetary terms. However,
    from Fannie Mae's perspective, these items are ``Amounts issued'' and
    ``Amounts passed through to the holders of securities'', respectively.
        Financial data for Fannie Mae is not presented here because Fannie
    Mae has not provided audited financial results for 2006.

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   99-2501-0-3-371

    2005 actual

    2006 actual

    -----------------------------------------------------------------------------------------------
        ASSETS:
          Net value of assets related to
              direct loans receivable and
              acquired defaulted guaranteed
              loans receivable:

    1601

    Direct loans, gross

    1603

    Allowance for estimated uncollectible loans and interest (-)

    1699

    Value of assets related to direct loans

    1999

    Total assets

        LIABILITIES:
    2104

    Resources payable

    2999

    Total liabilities

    4999

    Total liabilities and net position

    -----------------------------------------------------------------------------------------------

                     FEDERAL HOME LOAN MORTGAGE CORPORATION

                               Portfolio Programs

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 99-4420-0-3-371      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
    1131  Direct loan obligations...........
                                               ---------   ---------  ----------
    1150  Total direct loan obligations.....
    ----------------------------------------------------------------------------

        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........
    1231  Disbursements: Direct loan
            disbursements...................
    1251  Repayments: Repayments and
            prepayments.....................
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........
    ---------------------------------------------------------------------------
        Note: Consistent with Government-wide practice for GSEs, information for
    2007 and 2008 was not required to be collected.

        The Federal Home Loan Mortgage Corporation (Freddie Mac) is a
    Government-sponsored enterprise (GSE) in the housing finance market. The
    Administration has announced a proposal to strengthen regulation of all
    the housing GSEs, including Freddie Mac.
        As a housing GSE, Freddie Mac is a Federally-chartered, shareholder-
    owned, private company with a public mission to provide stability and
    increase the liquidity of the residential mortgage market, and to help
    increase the availability of mortgage credit to low- and moderate-income
    families and in underserved areas. Freddie Mac engages primarily in two
    forms of business: guaranteeing residential mortgage securities and
    investing in portfolios of residential mortgages.
        The Federal Government has equipped Freddie Mac with certain
    advantages over wholly private firms in carrying out these activities.
    These advantages include an exemption from State and local taxes (except
    real property taxes), and an exemption for its debt and mortgage
    securities from Securities and Exchange Commission registration
    requirements. An additional advantage is that the Secretary of the
    Treasury may purchase and hold up to $2.25 billion of securities issued
    by Freddie Mac under terms and conditions and at prices determined by
    the Secretary to be appropriate. Securities guaranteed and debt issued
    by Freddie Mac are explicitly not backed by the full faith and credit of
    the U.S. Government. The common stock of the corporation is owned by
    private shareholders, is fully transferable, and trades on the New York
    and Pacific stock exchanges.
        Freddie Mac was established in 1970 under the Emergency Home Finance
    Act. The Congress chartered Freddie Mac to provide mortgage lenders with
    an organized national secondary market enabling them to manage their
    conventional mortgage portfolio more effectively and gain indirect
    access to a ready source of additional funds to meet new demands for
    mortgages. Freddie Mac serves as a conduit facilitating the flow of
    investment dollars from the capital markets to mortgage lenders, and
    ultimately, to homebuyers.
        The Financial Institutions Reform, Recovery, and Enforcement Act of
    1989 (FIRREA) significantly changed the corporate governance of Freddie
    Mac. The company's three mem

    [[Page 1187]]

    ber Board of Directors, which had corresponded with the Federal Home
    Loan Bank Board, was replaced with an eighteen member Board of
    Directors. In addition, FIRREA converted Freddie Mac's 60 million shares
    of non-voting, senior participating preferred stock into voting common
    stock.
        Financial data for Freddie Mac is not presented here because Freddie
    Mac has not provided audited financial results for 2006. For additional
    discussion and analyses of Freddie Mac, please see the Analytical
    Perspectives volume of the Budget documents.

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   99-4420-0-3-371

    2005 actual

    2006 actual

    -----------------------------------------------------------------------------------------------
        ASSETS:
    1201

    Investments in other securities, net

    1206

    Receivables, net

          Net value of assets related to
              direct loans receivable and
              acquired defaulted guaranteed
              loans receivable:

    1601

    Direct loans, gross

    1603

    Allowance for estimated uncollectible loans and interest (-)

    1699

    Value of assets related to direct loans

    1801

    Cash and other monetary assets

    1803

    Property, plant and equipment, net

    1901

    Other assets

    1999

    Total assets

        LIABILITIES:
    2101

    Accounts payable

    2202

    Interest payable

    2203

    Debt

    2207

    Other

    2999

    Total liabilities

        NET POSITION:
    3100

    Invested capital

    3999

    Total net position

    4999

    Total liabilities and net position

    -----------------------------------------------------------------------------------------------

                           Mortgage-Backed Securities

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 99-4440-0-3-371      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
    1111  Limitation on direct loans........
    1131  Direct loan obligations...........
                                               ---------   ---------  ----------
    1150  Total direct loan obligations.....
    ----------------------------------------------------------------------------

        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........
    1231  Disbursements: Direct loan
            disbursements...................
    1251  Repayments: Repayments and
            prepayments.....................
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........
    ---------------------------------------------------------------------------
        Note: Consistent with Government-wide practice for GSEs, information for
    2007 and 2008 was not required to be collected.

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   99-4440-0-3-371

    2005 actual

    2006 actual

    -----------------------------------------------------------------------------------------------
        ASSETS:
    1901

    Underlying Mortgages

    1999

    Total assets

        LIABILITIES:
    2104

    Resources payable

    2999

    Total liabilities

    -----------------------------------------------------------------------------------------------

                          FEDERAL HOME LOAN BANK SYSTEM

                             Federal Home Loan Banks

                            Status of Direct Loans (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   99-4200-0-3-371    2006 actual      2007 est.     2008 est.
    -----------------------------------------------------------------------------------------------
    1131  Direct loan obligations...........   7,475,995
                                            ------------ --------------  ------------
    1150  Total direct loan obligations.....   7,475,995
    --------------------------------------------------------------------------------------------------
        Cumulative balance of direct loans
            outstanding:
    1210  Outstanding, start of year........     722,553
    1231  Advances made to members and
            mortgage loans purchased from
            members.........................   7,475,995
    1251  Principal collected on advances
            and mortgage loans..............  -7,453,327
    1261  Change in market value adjustments
            associated with Statement of
            Financial Accounting Standards
            No. 133.........................      -7,328
                                            ------------ --------------  ------------
    1290    Outstanding, end of year........     743,855
    -----------------------------------------------------------------------------------------------

        The Federal Home Loan Bank System is a Government-sponsored
    enterprise (GSE) in the housing finance market. The Administration has
    announced a proposal to strengthen regulation of all the housing GSEs,
    including the Federal Home Loan Bank System.

        The Federal Home Loan Banks were chartered by the Federal Home Loan
    Bank Board under the authority of the Federal Home Loan Bank Act of 1932
    (Act). The 12 Federal Home Loan Banks (FHLBanks) are under the
    supervision of the Federal Housing Finance Board (FHFB). The common
    mission of FHLBanks is to facilitate the extension of credit through
    their members. To accomplish this mission, FHLBanks make loans, called
    advances, and provide other credit products and services to their 8,149
    member commercial banks, savings associations, insurance companies, and
    credit unions. Advances and letters of credit must be fully secured by
    eligible collateral and long-term advances may be made only for the
    purpose of providing funds for residential housing finance. However,
    ``community financial institutions'' may also use long-term advances to
    finance small businesses, small farms, and small agribusinesses.
    Additionally, specialized advance programs provide funds for community
    reinvestment and affordable housing programs. All regulated financial
    depositories and insurance companies engaged in residential housing
    finance are eligible for membership. Each FHLBank operates in a
    geographic district designated by the Board and together FHLBanks cover
    all of the United States, as well as the District of Columbia, Puerto
    Rico, the Virgin Islands, Guam, American Samoa, and the Northern Mariana
    Islands.

        The principal source of funds for the lending operation is the sale
    of consolidated obligations to the public. The consolidated obligations
    are not guaranteed by the U.S. Government as to principal or interest.
    Other sources of lendable funds include members' deposits and capital.
    Funds not immediately needed for advances to members are invested.

        The capital stock of the Federal Home Loan Banks is owned entirely
    by the members. Initially the U.S. Government purchased stock of the
    banks in the amount of $125 million. The banks had repurchased the
    Government's investment in full by mid-1951.

        The Act, as amended in 1989, requires each FHLBank to operate an
    Affordable Housing Program (AHP). Each FHLBank provides subsidies in the
    form of direct grants or below-market rate advances for members that use
    the funds for qualifying affordable housing projects. Each of the
    FHLBanks must set aside annually the greater of $100 million or 10
    percent of its previous year's net earnings for the AHP. The Act, as
    amended in 1999, also requires that

    [[Page 1188]]

    FHLBanks contribute 20 percent of net earnings annually to assist in the
    payment of interest on bonds issued by the Resolution Funding
    Corporation.

        In 2002, the Administration requested all GSEs, including FHLBanks,
    to voluntarily register their equity securities with the Securities and
    Exchange Commission (SEC). This voluntary registration is part of the
    Administration's efforts to have GSEs undergo the same scrutiny process
    as other corporate enterprises. FHFB adopted a rule on June 23, 2004
    that requires each FHLBank to register a class of its stock. All of the
    Federal Home Loan Banks complied by 2006. (Freddie Mac has failed to
    commence registration with SEC, in spite of its prior commitment to do
    so. Fannie Mae registered with the SEC effective March 31, 2003, but has
    not filed financial statements for 2005 or 2006.)

        For additional discussion and analyses of the FHLBanks, please see
    the Analytical Perspectives volume of the Budget.

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   99-4200-0-3-371

    2005 actual

    2006 actual

    -----------------------------------------------------------------------------------------------
        ASSETS:
          Investments in US securities:

    1102

    Treasury securities, net

    103

    102

    1201

    Investments in other securities, net

    260,037

    274,926

    1206

    Accounts receivable

    3,246

    4,186

    1401

    Net value of assets related to direct loans receivable

    722,542

    743,849

    1801

    Cash and other monetary assets

    346

    329

    1803

    Property, plant and equipment, net

    199

    208

    1901

    Other assets

    1,447

    1,890

    1999

    Total assets

    987,920

    1,025,489

        LIABILITIES:
    2101

    REFCORP and Affordable Housing Program

    896

    715

    2202

    Interest payable

    6,029

    8,061

    2203

    Debt issued under borrowing authority

    904,945

    944,039

    2207

    Deposit funds and other borrowings

    19,235

    18,210

    2207

    Other

    12,354

    8,910

    2999

    Total liabilities

    943,459

    979,935

        NET POSITION:
    3100

    Invested capital

    44,461

    45,554

    3999

    Total equity

    44,461

    45,554

    4999

    Total liabilities and equity

    987,920

    1,025,489

    -----------------------------------------------------------------------------------------------
        Note: Consistent with Government-wide practice for GSEs, information for
    2007 and 2008 was not required to be collected.

                               FARM CREDIT SYSTEM

        The Farm Credit System is a Government-sponsored enterprise that
    provides privately financed credit to agricultural and rural
    communities. The major functional entities of the system are: 1)
    Agricultural Credit Bank (ACB); 2) Farm Credit Banks (FCB); and 3)
    direct lender associations. The history and specific functions of the
    bank entities are discussed after the presentation of financial
    schedules for each bank entity. As part of the Farm Credit System (FCS),
    these entities are regulated and examined by the Farm Credit
    Administration (FCA), an independent Federal agency. The administrative
    costs of FCA are financed by assessments of system institutions and the
    Federal Agricultural Mortgage Corporation. System banks finance loans
    from sales of bonds to the public and their own capital funds. The
    system bonds issued by the banks are not guaranteed by the U.S.
    Government either as to principal or interest. The bonds are backed by
    an insurance fund, administered by the Farm Credit System Insurance
    Corporation (FCSIC), an independent Federal agency that collects
    insurance premiums from member banks to pay its administrative expenses
    and fund insurance reserves. All of the banks' current operating
    expenses are paid from their own income and do not require budgetary
    resources from the Federal Government.

                            Agricultural Credit Bank

        CoBank, ACB is headquartered in Denver, Colorado and serves eligible
    cooperatives nationwide, and provides funding to Agricultural Credit
    Associations (ACAs) in two of its regions. CoBank, ACB is the only
    Agricultural Credit Bank (ACB) in the Farm Credit System. An ACB
    operates under statutory authority that combines the authorities of a
    Farm Credit Bank (FCB) and a Bank for Cooperatives (BC). In exercising
    its FCB authority, CoBank, ACB's charter limits its lending to ACAs
    located in the northeast and northwest regions of the country. As an
    entity lending to Cooperatives, CoBank is independently chartered to
    provide credit and related services nationwide to eligible cooperatives
    primarily engaged in farm supply, grain, marketing, and processing
    (including sugar and dairy). CoBank also makes loans to rural utilities,
    including telecommunications companies and it provides international
    loans for the financing of agricultural exports.

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 99-4130-0-3-351      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on obligations:
    1111  Limitation on direct loans........
    1131  Direct loan obligations...........      95,437     101,162     107,737
                                               ---------   ---------  ----------
    1150    Total direct loan obligations...      95,437     101,162     107,737
    ----------------------------------------------------------------------------

        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........      25,122      28,764      30,476
    1231  Disbursements: Direct loan
            disbursements...................      95,436     101,162     107,737
    1251  Repayments: Repayments and
            prepayments.....................     -91,803     -99,430    -105,737
          Write-offs for default:

    1263    Direct loans....................                     -20         -20
    1264    Other adjustments, net..........           9
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........      28,764      30,476      32,456
    ---------------------------------------------------------------------------

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code 99-4130-0-
    3-351

    2005 actual

    2006 actual

    -----------------------------------------------------------------------------------------------
        ASSETS:
          Non-Federal assets:

    1201

    Cash and investment securities

    7,184

    7,752

    1206

    Accrued interest receivable on loans

    169

    220

          Net value of assets related to
              direct loans receivable and
              acquired defaulted guaranteed
              loans receivable:

    1601

    Direct loans, gross

    25,122

    28,763

    1603

    Allowance for estimated uncollectible loans and interest (-)

    -435

    -441

    1699

    Value of assets related to direct loans

    24,687

    28,322

    1803

    Other Federal assets: Property, plant and equipment, net

    261

    375

    1999

    Total assets

    32,301

    36,669

        LIABILITIES:
    2104

    Federal liabilities: Resources payable

    675

    467

          Non-Federal liabilities:

    2201

    Consolidated systemwide and other bank bonds

    28,342

    32,547

    2201

    Notes payable and other interest-bearing liabilities

    124

    300

    2202

    Accrued interest payable

    253

    372

    2999

    Total liabilities

    29,394

    33,686

        NET POSITION:
    3300

    Cumulative results of operations

    2,907

    2,983

    3999

    Total net position

    2,907

    2,983

    4999

    Total liabilities and net position

    32,301

    36,669

    -----------------------------------------------------------------------------------------------

                      Statement of Changes in Net Worth (in thousands of dollars)

    -----------------------------------------------------------------------------------------------
                          99-4130            2005 actual    2006 actual     2007 est.      2008 est.
    -----------------------------------------------------------------------------------------------
    Beginning balance of net worth..........   2,869,656      2,907,259     2,982,698      3,074,000
                                            ============ ==============  ============  =============

      Capital stock and participations
        issued..............................       6,269          5,368         1,000          1,000
      Capital stock and participations
        retired.............................      67,534         71,242        51,113         44,590
      Net income............................     281,828        328,086       334,200        336,300
      Cash/Dividends/Patronage Distributions    -152,720       -174,335      -177,777       -171,710
      Other, net............................     -30,240        -12,438       -15,008        -22,000
                                            ------------ --------------  ------------  -------------

    [[Page 1189]]

    Ending balance of net worth.............   2,907,259      2,982,698     3,074,000      3,173,000
    -----------------------------------------------------------------------------------------------

                 Financing Activities (in thousands of dollars)

        --------------------------------------------------------------------
                        99-4130                 2005 actual     2006 actual      2007 est.      2008 est.
        --------------------------------------------------------------------
    Beginning balance of outstanding system
      obligations...........................       26,040,303      28,341,749     32,546,980      34,496,938
                                               ==============  ==============  =============  ==============

      Consolidated systemwide and other bank
        bonds issued........................       11,221,891      11,240,664     11,915,104      12,689,586
      Consolidated systemwide and other bank
        bonds retired.......................        9,378,220       8,853,321     10,165,146      10,658,879
      Consolidated systemwide notes, net....          311,845       1,817,888        200,000         250,000
      Other (Net)...........................          145,930               0              0               0
                                               --------------  --------------  -------------  --------------

    Ending balance of outstanding system
      obligations...........................       28,341,749      32,546,980     34,496,938      36,777,645
    -------------------------------------------------------------------------------------------------------

                                Farm Credit Banks

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 99-4160-0-3-371      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on obligations:
    1111  Limitation on direct loans........
    1131  Direct loan obligations...........     140,542     150,395     160,184
                                               ---------   ---------  ----------
    1150    Total direct loan obligations...     140,542     150,395     160,184
    ----------------------------------------------------------------------------

        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........      66,801      76,184      80,948
    1231  Disbursements: Direct loan
            disbursements...................     140,541     151,043     160,858
    1251  Repayments: Repayments and
            prepayments.....................    -131,156    -146,279    -155,400
          Write-offs for default:

    1263    Direct loans....................          -2
    1264    Other adjustments, net..........
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........      76,184      80,948      86,406
    ---------------------------------------------------------------------------
        Note.--Loans outstanding at end of year do not include nonaccrual
    loans and sales contracts.

        The Agricultural Credit Act of 1987 (1987 Act) required the Federal
    Land Banks (FLBs) and Federal Intermediate Credit Banks (FICBs) to merge
    into a Farm Credit Bank (FCB) in each of the 12 Farm Credit districts.
    FCBs operate under statutory authority that combines the prior
    authorities of a FLB and of a FICB. No merger occurred in the Jackson
    district in 1988 because the FLB of Jackson was in receivership.
    Pursuant to section 410(e) of the 1987 Act, as amended by the Farm
    Credit Banks Safety and Soundness Act of 1992, FICB of Jackson merged
    with FCB of Columbia on October 1, 1993. Mergers and consolidations of
    FCBs across district lines that began in 1992 have continued to date. As
    a result of this restructuring activity, 4 FCBs, headquartered in the
    following cities, remain: AgFirst FCB, Columbia, South Carolina;
    AgriBank FCB, St. Paul, Minnesota; U.S. AgBank, FCB, Wichita, Kansas;
    and FCB of Texas, Austin, Texas.
        FCBs serve as discount banks and as of October 1, 2006 provided
    funds to 9 Federal Land Credit Associations (FLCA) and 86 Agricultural
    Credit Associations (ACAs). These direct lender associations, in turn,
    make short-term production loans and long-term real estate loans to
    eligible farmers and ranchers, and their cooperatives; farm-related
    businesses; and rural homeowners. FCBs can also lend to local financing
    institutions, including commercial banks, as authorized by the Farm
    Credit Act of 1971, as amended.
        All the capital stock of FICB's, from organization in 1923 to
    December 31, 1956, was held by the U.S. Government. The 1956 Act
    provided a long-range plan for the eventual ownership of the credit
    banks by the production credit associations and the gradual retirement
    of the Government's investment in the banks. This retirement was
    accomplished in full on December 31, 1968. The last of the Government
    capital that had been invested in FLB's was repaid in 1947.

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code 99-4160-0-
    3-371

    2005 actual

    2006 actual

    -----------------------------------------------------------------------------------------------
        ASSETS:
          Non-Federal assets:

    1201

    Cash and investment securities

    19,513

    23,353

    1206

    Accrued Interest Receivable

    581

    819

          Net value of assets related to
              direct loans receivable and
              acquired defaulted guaranteed
              loans receivable:

    1601

    Direct loans, gross

    66,801

    76,185

    1603

    Allowance for estimated uncollectible loans and interest (-)

    -19

    -4

    1699

    Value of assets related to direct loans

    66,782

    76,181

    1803

    Other Federal assets: Property, plant and equipment, net

    321

    423

    1999

    Total assets

    87,197

    100,776

        LIABILITIES:
    2104

    Federal liabilities: Resources payable

    397

    386

          Non-Federal liabilities:

    2201

    Consolidated systemwide and other bank bonds

    80,993

    93,939

    2201

    Notes payable and other interest-bearing liabilities

    368

    437

    2202

    Accrued interest payable

    592

    884

    2999

    Total liabilities

    82,350

    95,646

        NET POSITION:
    3300

    Cumulative results of operations

    4,847

    5,130

    3999

    Total net position

    4,847

    5,130

    4999

    Total liabilities and net position

    87,197

    100,776

    -----------------------------------------------------------------------------------------------

                      Statement of Changes in Net Worth (in thousands of dollars)

    -----------------------------------------------------------------------------------------------
                          99-4160            2005 actual    2006 actual     2007 est.      2008 est.
    -----------------------------------------------------------------------------------------------
    Beginning balance of net worth..........   4,520,633      4,846,675     5,129,876      5,347,437
                                            ============ ==============  ============  =============

      Capital stock and participations
        issued..............................     237,099        223,860        70,342        102,225
      Capital stock and participations
        retired.............................     118,560        108,125             0              0
      Surplus Retired.......................       4,257          2,462             0              0
      Net income............................     521,660        503,366       509,823        538,784
      Cash/Dividends/Patronage Distributions    -286,298       -349,463      -353,232       -363,159
      Other, net............................     -23,602         16,025        -9,372        -17,863
                                            ------------ --------------  ------------  -------------
    Ending balance of net worth.............   4,846,675      5,129,876     5,347,437      5,607,424
    -----------------------------------------------------------------------------------------------

                 Financing Activities (in thousands of dollars)

        --------------------------------------------------------------------
                        99-4160                 2005 actual     2006 actual      2007 est.      2008 est.
        --------------------------------------------------------------------
    Beginning balance of outstanding system
      obligations...........................       71,077,982      80,993,251     93,938,983      99,597,895
                                               ==============  ==============  =============  ==============

      Consolidated systemwide and other bank
        bonds issued........................       37,670,028      33,379,481     33,097,334      35,106,879
      Consolidated systemwide and other bank
        bonds retired.......................       28,143,701      22,985,482     28,063,935      29,630,728
      Consolidated systemwide notes, net....          383,675       2,551,733        625,513         667,335
      Other, net............................            5,267               0              0               0
                                               --------------  --------------  -------------  --------------

    Ending balance of outstanding system
      obligations...........................       80,993,251      93,938,983     99,597,895     105,741,381
    -------------------------------------------------------------------------------------------------------

                    Federal Agricultural Mortgage Corporation

                                  (Farmer Mac)

        Farmer Mac is authorized under the Farm Credit Act of 1971 (Act), as
    amended by the Agricultural Credit Act of 1987, to create a secondary
    market for agricultural real estate and rural home mortgages. The Farmer
    Mac title of the Act was amended by the 1990 farm bill to authorize
    Farmer Mac to purchase, pool, and securitize the guaranteed portions of
    farmer program, rural business, and community development loans
    guaranteed by the United States Department of Agriculture (USDA). The
    Farmer Mac title was further amended in 1991 to clarify Farmer Mac's
    authority to issue debt obligations, provide for the establishment of
    minimum capital standards, establish the Office of Secondary Market
    Oversight at the Farm Credit Administration (FCA), and expand the
    agency's rulemaking authority. Most recently, the Farm Cred

    [[Page 1190]]

    it System Reform Act of 1996 (1996 Act) amended the Farmer Mac title to
    allow Farmer Mac to purchase loans directly from lenders and to issue
    and guarantee mortgage-backed securities without requiring that a
    minimum cash reserve or subordinated (first loss) interest be maintained
    by poolers as had been required under its original authority. The 1996
    Act expanded FCA's regulatory authority to include provisions for
    establishing a conservatorship or receivership, if necessary, and
    provided for increased core capital requirements at Farmer Mac phased in
    over three years.
        Farmer Mac operates through two core programs, ``Farmer Mac I,''
    which involves mortgage loans secured by first liens on agricultural
    real estate or rural housing (qualified loans), and ``Farmer Mac II,''
    which involves the guaranteed portions of USDA guaranteed loans. Farmer
    Mac operates by: i) purchasing, or committing to purchase, newly
    originated or existing qualified loans or guaranteed portions from
    lenders; ii) purchasing ``AgVantage'' bonds backed by qualified loans or
    guaranteed portions from lenders; and iii) exchanging qualified loans or
    guaranteed portions for guaranteed securities. Loans purchased by Farmer
    Mac are aggregated into pools that back Farmer Mac guaranteed securities
    which are held by Farmer Mac or sold into the capital markets. Farmer
    Mac is intended to attract new capital for financing qualified loans and
    guaranteed portions, foster increased long-term, fixed-rate lending, and
    provide greater liquidity to agricultural and rural lenders.
        Farmer Mac is governed by a 15 member Board of Directors. Ten Board
    members are elected by stockholders, including five by the Farm Credit
    System and five by commercial lenders. Five are appointed by the
    President, subject to Senate confirmation.

                                    Financing

        Financial support and funding for Farmer Mac's operations come from
    several sources: sale of common and preferred stock; issuance of debt
    obligations; and net income. Under procedures specified in the Act,
    Farmer Mac may issue obligations to the U.S. Treasury in a cumulative
    amount not to exceed $1.5 billion to fulfill its guarantee obligations.
        As of September 30, 2006, Farmer Mac's core capital exceeded
    statutory requirements. Additionally, Farmer Mac's regulatory capital
    (core capital plus the allowance for loan losses) exceeded the amount of
    required regulatory capital as determined by the risk-based capital
    rule, with which Farmer Mac was required to be in compliance on May 23,
    2002.

                                   Guarantees

        Farmer Mac provides a guarantee of timely payment of principal and
    interest on securities backed by qualified loans or pools of qualified
    loans. These securities are not guaranteed by the United States, and are
    not ``government securities''.
        Farmer Mac is subject to reporting requirements under securities
    laws and its guaranteed mortgage-backed securities are subject to
    registration with the Securities and Exchange Commission under the 1933
    and 1934 Securities Acts.

                                   Regulation

        Farmer Mac is Federally regulated by FCA, acting through its Office
    of Secondary Market Oversight (OSMO). FCA is responsible for the
    supervision, examination of, and rulemaking for Farmer Mac.

                 Status of Guaranteed Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 99-4180-0-3-351      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on commitments:
    2111  Limitation on guaranteed loans....
    2131  Guaranteed loan commitments.......       2,907
                                               ---------   ---------  ----------
    2150    Total guaranteed loan
              commitments...................       2,907
    ----------------------------------------------------------------------------

        Cumulative balance of guaranteed loans
                    outstanding:
    2210  Outstanding, start of year........       5,126       7,058       7,058
    2231  Disbursements of new guaranteed
            loans...........................       2,907
    2251  Repayments and prepayments........        -975
                                               ---------   ---------  ----------
    2290    Outstanding, end of year........       7,058       7,058       7,058
    ----------------------------------------------------------------------------

        Memorandum:
    2299  Guaranteed amount of guaranteed
            loans outstanding, end of year..         901
    ---------------------------------------------------------------------------

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code 99-4180-0-
    3-351

    2005 actual

    2006 actual

    -----------------------------------------------------------------------------------------------
        ASSETS:
          Non-Federal assets:

    1201

    Investment in securities

    1,594

    1,896

    1206

    Receivables, net

    41

    56

          Net value of assets related to
              direct loans receivable:

    1401

    Direct loans receivable, gross

    2,140

    2,084

    1402

    Interest receivable

    45

    52

    1499

    Net present value of assets related to direct loans

    2,185

    2,136

    1801

    Other Federal assets: Cash and other monetary assets

    438

    805

    1999

    Total assets

    4,258

    4,893

        LIABILITIES:
          Non-Federal liabilities:

    2201

    Accounts payable

    47

    34

    2202

    Interest payable

    24

    26

    2203

    Debt

    3,931

    4,554

    2204

    Liabilities for loan guarantees

    20

    34

    2999

    Total liabilities

    4,022

    4,648

        NET POSITION:
    3300

    Invested capital

    236

    245

    3999

    Total net position

    236

    245

    4999

    Total liabilities and net position

    4,258

    4,893

    -----------------------------------------------------------------------------------------------