#

##

##

###

###

###

##

###

###

###

##

###

###

##

##

###

###

###

###

###

###

###

###

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

             <h1>GOVERNMENT-SPONSORED ENTERPRISES

             </h1>

          GOVERNMENT-SPONSORED ENTERPRISES

             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.

             —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, also a Farm Credit System institution under the regulation of the Farm Credit
                Administration, provides a secondary market for agricultural real estate, rural housing loans, and certain rural utility loans,
                as well as for farm and business loans guaranteed by the U.S. Department of Agriculture.

          Federal National Mortgage Association

          Federal Funds
             Portfolio Programs

             Status of Direct Loans (in millions of dollars)

                      Identification code 915–4986–0–4–371
                      2016 actual
                      2017 est.
                      2018 est.

                      Cumulative balance of direct loans outstanding:

                      1210
                      Outstanding, start of year
                      370,450
                      306,537
                      288,408

                      1251
                      Repayments: Net repayments and prepayments
                      –63,913
                      –18,129
                      –38,408

                      1290
                      Outstanding, end of year
                      306,537
                      288,408
                      250,000

             The Federal National Mortgage Association (Fannie Mae) is a Government-sponsored enterprise (GSE) in the housing finance market.
                As a housing GSE, Fannie Mae is a federally chartered, shareholder-owned, private company with a public mission to provide
                stability in 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. Fannie Mae engages primarily in two forms of business:
                guaranteeing residential mortgage securities and investing in portfolios of residential mortgages.

             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.

             The Housing and Economic Recovery Act (HERA) of 2008 reformed housing GSE regulation by creating the Federal Housing Finance
                Agency (FHFA), a new independent regulator, and providing temporary authority for the U.S. Department of the Treasury to purchase
                obligations of the housing GSEs. On September 6, 2008, FHFA placed Fannie Mae under Federal conservatorship in response to
                the GSEs' declining capital adequacy and to support the safety and soundness of the GSEs. On the following day, the U.S. Department
                of the Treasury entered into a Senior Preferred Stock Purchase Agreement (PSPA) with Fannie Mae to make investments of up
                to $100 billion in senior preferred stock as required to maintain positive equity. In May 2009, Treasury increased the funding
                commitments for the PSPA to $200 billion and in December 2009, Treasury modified the funding commitments in the PSPA to the
                greater of $200 billion or $200 billion plus cumulative net worth deficits experienced during 2010–2012, less any surplus
                remaining as of December 31, 2012. Based on the financial results reported by Fannie Mae as of December 31, 2012, and under
                the terms of the PSPA, the cumulative funding commitment cap for Fannie Mae was set at $233.7 billion. As of March 31, 2017,
                Fannie Mae had received $116.1 billion under the PSPA and made a total of $159.8 billion in dividend payments to Treasury
                on the senior preferred stock. The Budget continues to reflect the GSEs as non-budgetary entities, though their status will
                continue to be reviewed. All of the current federal assistance being provided to Fannie Mae, including the PSPA, is shown
                on-budget. 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 915–4986–0–4–371
                      2015 actual
                      2016 actual

                      ASSETS:

                      Federal assets:

                      Investments in US securities:

                      1102
                      Treasury securities, par
                      26,961
                      31,277

                      1201
                      Non-Federal assets: Investments in non-Federal securities, net
                      26,600
                      7,985

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

                      1601
                      Mortgage Loans and Mortgage Related Securities
                      248,930
                      227,157

                      1601
                      Mortgage Loans and Mortgage Related Securities - Consolidated Trusts
                      2,804,581
                      2,851,304

                      1604
                      Direct loans and interest receivable, net
                      3,053,511
                      3,078,461

                      1606
                      Acquired Property, net
                      7,691
                      5,041

                      1699
                      Value of assets related to direct loans
                      3,061,202
                      3,083,502

                      Other Federal assets:

                      1801
                      Cash and other monetary assets
                      77,007
                      98,077

                      1901
                      Other assets
                      39,012
                      35,101

                      1999
                      Total assets
                      3,230,782
                      3,255,942

                      LIABILITIES:

                      Non-Federal liabilities:

                      2202
                      Interest payable
                      10,016
                      9,512

                      2203
                      Debt
                      417,458
                      351,568

                      2203
                      Debt - Consolidated Trusts
                      2,788,787
                      2,881,545

                      2207
                      Other
                      10,518
                      9,141

                      2999
                      Total liabilities
                      3,226,779
                      3,251,766

                      NET POSITION:

                      3300
                      Senior Preferred Stock
                      117,149
                      117,149

                      3300
                      Private Equity
                      –113,177
                      –112,973

                      3300
                      Noncontrolling Interest
                      31

                      3999
                      Total net position
                      4,003
                      4,176

                      4999
                      Total liabilities and net position
                      3,230,782
                      3,255,942

             Mortgage-backed Securities

             Status of Direct Loans (in millions of dollars)

                      Identification code 915–4987–0–4–371
                      2016 actual
                      2017 est.
                      2018 est.

                      Cumulative balance of direct loans outstanding:

                      1210
                      Outstanding, start of year
                      2,801,954
                      2,861,296
                      2,861,296

                      1231
                      Disbursements: Direct loan disbursements
                      554,925

                      1251
                      Repayments: Repayments and prepayments
                      –495,583

                      1290
                      Outstanding, end of year
                      2,861,296
                      2,861,296
                      2,861,296

             Prior to January 1, 2010, the mortgages in the pools of loans supporting the mortgage-backed securities guaranteed by Fannie
                Mae were considered to be owned by the holders of these securities according to the accounting standards for private corporations.
                Consequently, on the books of Fannie Mae, these mortgages were not considered assets and the securities outstanding were not
                considered liabilities. New accounting standards implemented on January 1, 2010, require consolidation of many, but not all,
                of these securities in Fannie Mae's financial statements. For the purposes of the Budget they are presented as direct loans
                for mortgage-backed securities. "Disbursements" and "Repayments" are budgetary terms. These items are reported by Fannie Mae
                as "Issuances" and "Liquidations," respectively.

          Federal Home Loan Mortgage Corporation

          Federal Funds
             Portfolio Programs

             Status of Direct Loans (in millions of dollars)

                      Identification code 913–4988–0–4–371
                      2016 actual
                      2017 est.
                      2018 est.

                      Cumulative balance of direct loans outstanding:

                      1210
                      Outstanding, start of year
                      367,145
                      308,114
                      288,408

                      1251
                      Repayments: Repayments and prepayments
                      –59,031
                      –19,706
                      –38,408

                      1290
                      Outstanding, end of year
                      308,114
                      288,408
                      250,000

             The Federal Home Loan Mortgage Corporation (Freddie Mac) is a Government-sponsored enterprise (GSE) in the housing finance
                market. As a housing GSE, Freddie Mac is a federally chartered, shareholder-owned, private company with a public mission to
                provide stability in 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.

             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 Housing and Economic Recovery Act (HERA) of 2008 reformed housing GSE regulation by creating the Federal Housing Finance
                Agency (FHFA), a new independent regulator, and provided temporary authority for the U.S. Department of the Treasury to purchase
                obligations of the housing GSEs. On September 6, 2008, FHFA placed Freddie Mac under Federal conservatorship in response to
                the GSEs' declining capital adequacy and to support the safety and soundness of the GSEs. On the following day, the U.S. Department
                of the Treasury entered into a Senior Preferred Stock Purchase Agreement (PSPA) with Freddie Mac to make investments of up
                to $100 billion in senior preferred stock as required to maintain positive equity. In May 2009, Treasury increased the funding
                commitments for the PSPA to $200 billion and in December 2009, Treasury modified the funding commitments in the PSPA to the
                greater of $200 billion or $200 billion plus cumulative net worth deficits experienced during 2010–2012, less any surplus
                remaining as of December 31, 2012. Based on the financial results reported by Freddie Mac as of December 31, 2012, and under
                the terms of the PSPA, the cumulative funding commitment cap for Freddie Mac was set at $211.8 billion. As of March 31, 2017,
                Freddie Mac had received $71.3 billion under the PSPA and made a total of $105.9 billion in dividend payments to Treasury
                on the senior preferred stock. The Budget continues to reflect the GSEs as non-budgetary entities, though their status will
                continue to be reviewed. All of the current federal assistance being provided to Freddie Mac, including the PSPA, is shown
                on-budget. 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 913–4988–0–4–371
                      2015 actual
                      2016 actual

                      ASSETS:

                      Federal assets:

                      Investments in US securities:

                      1102
                      Treasury securities, par
                      12,158
                      23,579

                      1201
                      Non-Federal assets: Investments in non-Federal securities, net
                      38,738
                      55,673

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

                      1601
                      Mortgage Loans and Mortgage Related Securities
                      239,797
                      207,898

                      1601
                      Mortgage Loans and Mortgage Related Securities - Consolidated Trusts
                      1,615,291
                      1,666,352

                      1604
                      Direct loans and interest receivable, net
                      1,855,088
                      1,874,250

                      1606
                      Acquired property, net
                      1,795
                      1,272

                      1699
                      Value of assets related to direct loans
                      1,856,883
                      1,875,522

                      Other Federal assets:

                      1801
                      Cash and other monetary assets
                      36,551
                      41,758

                      1901
                      Other assets
                      17,817
                      18,730

                      1999
                      Total assets
                      1,962,147
                      2,015,262

                      LIABILITIES:

                      Non-Federal liabilities:

                      2202
                      Interest payable
                      6,135
                      5,890

                      2203
                      Debt
                      408,281
                      378,059

                      2203
                      Debt - Consolidated Trusts
                      1,539,108
                      1,621,782

                      2207
                      Other
                      7,324
                      6,021

                      2999
                      Total liabilities
                      1,960,848
                      2,011,752

                      NET POSITION:

                      3300
                      Senior Preferred Stock
                      72,336
                      72,336

                      3300
                      Private Equity
                      –71,037
                      –68,826

                      3999
                      Total net position
                      1,299
                      3,510

                      4999
                      Total liabilities and net position
                      1,962,147
                      2,015,262

             Mortgage-backed Securities

             Status of Direct Loans (in millions of dollars)

                      Identification code 914–4989–0–4–371
                      2016 actual
                      2017 est.
                      2018 est.

                      Cumulative balance of direct loans outstanding:

                      1210
                      Outstanding, start of year
                      1,719,202
                      1,817,855
                      1,817,855

                      1231
                      Disbursements: Direct loan disbursements
                      401,116

                      1251
                      Repayments: Repayments and prepayments
                      –302,463

                      1290
                      Outstanding, end of year
                      1,817,855
                      1,817,855
                      1,817,855

             Prior to January 1, 2010, the mortgages in the pools of loans supporting the mortgage-backed securities guaranteed by Freddie
                Mac were considered to be owned by the holders of these securities according to the accounting standards for private corporations.
                Consequently, on the books of Freddie Mac, these mortgages were not considered assets and the securities outstanding were
                not considered liabilities. New accounting standards implemented on January 1, 2010, require consolidation of many, but not
                all, of these securities in Freddie Mac's financial statements. For the purposes of the Budget, they are presented as direct
                loans for mortgage-backed securities. "Disbursements'' and "Repayments'' are budgetary terms. These items are reported by
                Freddie Mac as "Issuances" and "Liquidations," respectively.

          Federal Home Loan Bank System

          Federal Funds
             Federal Home Loan Banks

             Status of Direct Loans (in millions of dollars)

                      Identification code 913–4990–0–4–371
                      2016 actual
                      2017 est.
                      2018 est.

                      Cumulative balance of direct loans outstanding:

                      1210
                      Outstanding, start of year
                      636,324
                      735,671
                      735,671

                      1231
                      Disbursements: Direct loan disbursements
                      6,599,502
                      6,599,502
                      6,599,502

                      1251
                      Repayments: Repayments and prepayments
                      –6,498,568
                      –6,599,502
                      –6,599,502

                      1264
                      Write-offs for default: Other adjustments, net (+ or -)
                      –1,587

                      1290
                      Outstanding, end of year
                      735,671
                      735,671
                      735,671

             The Federal Home Loan Bank System is a Government-sponsored enterprise (GSE) in the housing finance market. 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 11 Federal Home Loan Banks (FHLBanks) are under the supervision of the Federal Housing Finance Agency (FHFA), established
                by the Congress in 2008. 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 over
                7,100 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, certified community development financial
                institutions, and insurance companies engaged in residential housing finance are eligible for membership, and must meet other
                requirements in the Act to obtain membership. Each FHLBank operates in a geographic district 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 10 percent of its previous year's net earnings, subject to an aggregate
                minimum of $100 million, for the AHP. The Act, as amended in 1999, also required that FHLBanks contribute 20 percent of net
                earnings annually to assist in the payment of interest on bonds issued by the Resolution Funding Corporation until such time
                as the total payments are equivalent to a $300 million annual annuity with a final maturity date of April 15, 2030. The FHLBanks
                fulfilled this obligation on August 5, 2011. 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 913–4990–0–4–371
                      2015 actual
                      2016 actual

                      ASSETS:

                      Federal assets:

                      Investments in US securities:

                      1102
                      Treasury securities, par
                      307
                      1,511

                      Non-Federal assets:

                      1201
                      Investments in non-Federal securities, net
                      263,134
                      290,231

                      1206
                      Accounts receivable
                      1,106
                      1,201

                      1401
                      Net value of assets related to direct loans receivable: Direct loans receivable, gross
                      636,325
                      735,711

                      Other Federal assets:

                      1801
                      Cash and other monetary assets
                      17,480
                      5,488

                      1803
                      Property, plant and equipment, net
                      210
                      218

                      1901
                      Other assets
                      1,364
                      2,004

                      1999
                      Total assets
                      919,926
                      1,036,364

                      LIABILITIES:

                      2101
                      Federal liabilities: REFCORP and Affordable Housing Program
                      833
                      912

                      Non-Federal liabilities:

                      2202
                      Interest payable
                      1,353
                      1,225

                      2203
                      Debt
                      858,606
                      968,842

                      2207
                      Deposit funds and other borrowing
                      8,268
                      5,748

                      2207
                      Other
                      4,649
                      8,796

                      2999
                      Total liabilities
                      873,709
                      985,523

                      NET POSITION:

                      3100
                      Invested capital
                      46,217
                      50,841

                      4999
                      Total liabilities and net position
                      919,926
                      1,036,364

          Farm Credit System

             The Farm Credit System (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) the Agricultural Credit Bank (ACB); (2) the Farm
                Credit Banks (FCBs); and (3) the direct-lender associations. Farmer Mac, which is also an institution of the System, is discussed
                separately below. 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 System, 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 on System institutions,
                including Farmer Mac. System banks finance loans primarily 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 as to either 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.

          Federal Funds
             Agricultural Credit Bank

             Status of Direct Loans (in millions of dollars)

                      Identification code 912–4991–0–4–351
                      2016 actual
                      2017 est.
                      2018 est.

                      Cumulative balance of direct loans outstanding:

                      1210
                      Outstanding, start of year
                      84,524
                      90,417
                      94,608

                      1231
                      Disbursements: Direct loan disbursements
                      313,649
                      325,471
                      337,739

                      1251
                      Repayments: Repayments and prepayments
                      –307,755
                      –321,234
                      –334,123

                      1263
                      Write-offs for default: Direct loans
                      –1
                      –46
                      –50

                      1290
                      Outstanding, end of year
                      90,417
                      94,608
                      98,174

             CoBank, ACB, which is headquartered outside Denver, Colorado, serves eligible cooperatives nationwide and provides funding
                to Agricultural Credit Associations (ACAs) and Federal Land Credit Associations (FLCAs) in its chartered district. CoBank,
                ACB, is the only Agricultural Credit Bank (ACB) in the Farm Credit System. The 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's
                charter limits its lending to 23 ACAs and one FLCA located in the northeast, central, and western regions of the country.
                As an entity lending to cooperatives, CoBank is chartered to provide credit and related services nationwide to eligible cooperatives
                primarily engaged in farm supply, grain, marketing, and processing (including sugar, dairy, and ethanol). CoBank also makes
                loans to rural utilities, including telecommunications companies, and it provides international loans for the financing of
                agricultural exports.

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

                         2015 act.
                         2016 act.
                         2017 est.
                         2018 est.

                         Beginning balance of net worth
                         7,061,398
                         7,800,245
                         8,653,830
                         8,946,279

                         Capital stock and participations issued
                         335,770
                         440,611
                         84,856
                         111,056

                         Capital stock and participations retired
                         169,301
                         29,108
                         28,000
                         35,700

                         Net income
                         915,751
                         954,624
                         906,727
                         875,234

                         Cash/Dividends/Patronage Distributions
                         –456,814
                         –533,998
                         –569,456
                         –586,811

                         Other, net
                         113,441
                         21,456
                         –101,678
                         2,037

                         Ending balance of net worth
                         7,800,245
                         8,653,830
                         8,946,279
                         9,312,095

             Financing Activities (in thousands of dollars)

                         2015 act.
                         2016 act.
                         2017 est.
                         2018 est.

                         Beginning balance of outstanding system obligations
                         88,513,292
                         97,279,304
                         107,407,980
                         111,023,434

                         Consolidated systemwide and other bank bonds issued
                         41,260,664
                         46,805,926
                         48,570,189
                         50,400,953

                         Consolidated systemwide and other bank bonds retired
                         31,383,539
                         37,078,905
                         45,421,952
                         46,146,494

                         Consolidated systemwide notes, net
                         –1,043,732
                         456,912
                         500,000
                         500,000

                         Other (Net)
                         –67,381
                         –55,257
                         –32,783
                         –22,025

                         Ending balance of outstanding system obligations
                         97,279,304
                         107,407,980
                         111,023,434
                         115,755,868

          Balance Sheet (in millions of dollars)

                      Identification code 912–4991–0–4–351
                      2015 actual
                      2016 actual

                      ASSETS:

                      Non-Federal assets:

                      1201
                      Cash and investment securities
                      25,081
                      29,492

                      1206
                      Accrued interest receivable on loans
                      315
                      321

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

                      1601
                      Direct loans, gross
                      84,524
                      90,416

                      1603
                      Allowance for estimated uncollectible loans and interest (-)
                      –460
                      –519

                      1699
                      Value of assets related to direct loans
                      84,064
                      89,897

                      1803
                      Other Federal assets: Property, plant and equipment, net
                      1,025
                      1,039

                      1999
                      Total assets
                      110,485
                      120,749

                      LIABILITIES:

                      2104
                      Federal liabilities: Resources payable to Treasury
                      1,484
                      1,498

                      Non-Federal liabilities:

                      2201
                      Consolidated systemwide and other bank bonds
                      97,279
                      107,408

                      2201
                      Notes payable and other interest-bearing liabilities
                      3,636
                      2,916

                      2202
                      Accrued interest payable
                      286
                      273

                      2999
                      Total liabilities
                      102,685
                      112,095

                      NET POSITION:

                      3300
                      Cumulative results of operations
                      7,800
                      8,654

                      4999
                      Total liabilities and net position
                      110,485
                      120,749

             Farm Credit Banks

             Status of Direct Loans (in millions of dollars)

                      Identification code 912–4992–0–4–371
                      2016 actual
                      2017 est.
                      2018 est.

                      Cumulative balance of direct loans outstanding:

                      1210
                      Outstanding, start of year
                      115,851
                      123,454
                      130,647

                      1231
                      Disbursements: Direct loan disbursements
                      207,734
                      219,359
                      230,638

                      1251
                      Repayments: Repayments and prepayments
                      –200,135
                      –212,148
                      –224,651

                      Write-offs for default:

                      1263
                      Direct loans

                      –18
                      –18

                      1264
                      Other adjustments, net (+ or -)
                      4

                      1290
                      Outstanding, end of year
                      123,454
                      130,647
                      136,616

             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 an FLB and of an 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, which began in 1992, have continued to date. As a result of this restructuring activity, three FCBs,
                headquartered in the following cities, remain as of October 1, 2016: AgFirst Farm Credit Bank, Columbia, South Carolina; AgriBank,
                FCB, St. Paul, Minnesota; and FCB of Texas, Austin, Texas.

             FCBs serve as discount banks and, as of October 1, 2016, provided funds to one Federal Land Credit Association (FLCA) and
                49 Agricultural Credit Associations (ACAs). These direct-lender associations, in turn, primarily make short- and intermediate-term
                production loans and long-term real estate loans to eligible farmers and ranchers, farm-related businesses, and rural homeowners.
                FCBs can also lend to other financing institutions, including commercial banks, as authorized by the Farm Credit Act of 1971,
                as amended.

             All the capital stock of FICBs, from their organization in 1923 to December 31, 1956, was held by the U.S. Government. The
                Farm Credit Act of 1956 provided a long-range plan for the eventual ownership of the FICBs 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 FLBs was repaid in 1947.

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

                         2015 act.
                         2016 act.
                         2017 est.
                         2018 est.

                         Beginning balance of net worth
                         8,828,842
                         9,149,023
                         9,480,347
                         9,937,294

                         Capital stock and participations issued
                         185,976
                         226,361
                         175,970
                         175,040

                         Capital stock and participations retired
                         85,259
                         113,897
                         10,182
                         9,021

                         Surplus Retired
                         –2,162
                         –4,633
                         0
                         0

                         Net income
                         1,049,060
                         1,026,457
                         958,943
                         962,909

                         Cash/Dividends/Patronage Distributions
                         –778,566
                         –695,451
                         –641,805
                         –637,413

                         Other, net
                         –53,192
                         –116,779
                         –25,979
                         –193,255

                         Ending balance of net worth
                         9,149,023
                         9,480,347
                         9,937,294
                         10,235,554

             Financing Activities (in thousands of dollars)

                         2015 act.
                         2016 act.
                         2017 est.
                         2018 est.

                         Beginning balance of outstanding system obligations
                         125,494,765
                         133,822,885
                         144,502,285
                         150,343,507

                         Consolidated systemwide and other bank bonds issued
                         222,845,285
                         242,160,591
                         230,529,306
                         235,080,328

                         Consolidated systemwide and other bank bonds retired
                         215,967,375
                         236,530,182
                         230,242,814
                         234,636,684

                         Consolidated systemwide notes, net
                         1,450,210
                         5,068,965
                         5,554,730
                         5,774,537

                         Other (Net)
                         0
                         –19,974
                         0
                         0

                         Ending balance of outstanding system obligations
                         133,822,885
                         144,502,285
                         150,343,507
                         156,561,688

          Balance Sheet (in millions of dollars)

                      Identification code 912–4992–0–4–371
                      2015 actual
                      2016 actual

                      ASSETS:

                      Non-Federal assets:

                      1201
                      Cash and investment securities
                      28,678
                      31,403

                      1206
                      Accrued Interest Receivable
                      502
                      554

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

                      1601
                      Direct loans, gross
                      115,850
                      123,453

                      1603
                      Allowance for estimated uncollectible loans and interest (-)
                      –37
                      –45

                      1699
                      Value of assets related to direct loans
                      115,813
                      123,408

                      1803
                      Other Federal assets: Property, plant and equipment, net
                      560
                      629

                      1999
                      Total assets
                      145,553
                      155,994

                      LIABILITIES:

                      2104
                      Federal liabilities: Resources payable to Treasury
                      394
                      506

                      Non-Federal liabilities:

                      2201
                      Consolidated systemwide and other bank bonds
                      133,822
                      144,502

                      2201
                      Notes payable and other interest-bearing liabilities
                      1,849
                      1,166

                      2202
                      Accrued interest payable
                      339
                      340

                      2999
                      Total liabilities
                      136,404
                      146,514

                      NET POSITION:

                      3300
                      Cumulative results of operations
                      9,149
                      9,480

                      4999
                      Total liabilities and net position
                      145,553
                      155,994

             Federal Agricultural Mortgage Corporation

             Status of Guaranteed Loans (in millions of dollars)

                      Identification code 912–4993–0–4–351
                      2016 actual
                      2017 est.
                      2018 est.

                      Cumulative balance of guaranteed loans outstanding:

                      2210
                      Outstanding, start of year
                      15,628
                      17,248
                      17,248

                      2231
                      Disbursements of new guaranteed loans
                      4,233

                      2251
                      Repayments and prepayments
                      –2,613

                      2290
                      Outstanding, end of year
                      17,248
                      17,248
                      17,248

                      Memorandum:

                      2299
                      Guaranteed amount of guaranteed loans outstanding, end of year
                      2,021

                Farmer MacFarmer Mac is authorized under the Farm Credit Act of 1971, as amended by the Agricultural Credit Act of 1987 (Act), 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 U.S. Department of Agriculture (USDA). The Farmer Mac title was
                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. The Farm Credit 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. Most recently,
                the 2008 Farm Bill, the Food, Conservation and Energy Act of 2008 amended the Farmer Mac title to authorize the financing
                of rural electric and telephone cooperatives.

             Farmer Mac operates through several programs: the "Farm & Ranch" program involves mortgage loans secured by first liens on
                agricultural real estate, or rural housing (qualified loans); the "USDA guarantees" program involves the guaranteed portions
                of certain USDA-guaranteed loans; and the "Rural Utilities" program involves rural electric and telecommunications loans.
                Farmer Mac operates by (1) purchasing, or committing to purchase, newly originated or existing qualified loans or guaranteed
                portions from lenders; (2) purchasing or guaranteeing "AgVantage'' bonds backed by qualified loans; and (3) exchanging qualified
                loans or guaranteed portions for guaranteed securities. Loans purchased by Farmer Mac may be aggregated into pools that back
                Farmer Mac guaranteed securities, which are held by Farmer Mac or sold into the capital markets.

             Farmer Mac is governed by a 15-member Board of Directors. Ten board members are elected by stockholders, including five by
                stockholders that are Farm Credit System (FCS) institutions and five by stockholders that are non-FCS financial services firms.
                Five are appointed by the President, subject to Senate confirmation.

                FinancingFinancial support and funding for Farmer Mac's operations come from several sources: sale of common and preferred stock, issuance
                of debt obligations, and 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 Farmer Mac's guarantee obligations.

             As of September 30, 2016, 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.

                GuaranteesFarmer 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.

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

          Balance Sheet (in millions of dollars)

                      Identification code 912–4993–0–4–351
                      2015 actual
                      2016 actual

                      ASSETS:

                      Non-Federal assets:

                      1201
                      Investment in securities
                      2,032
                      3,001

                      1206
                      Receivables, net
                      151
                      165

                      Net value of assets related to direct loans receivable:

                      1401
                      Direct loans receivable, gross
                      11,080
                      12,434

                      1402
                      Interest receivable
                      74
                      87

                      1499
                      Net present value of assets related to direct loans
                      11,154
                      12,521

                      1801
                      Other Federal assets: Cash and other monetary assets
                      1,517
                      314

                      1999
                      Total assets
                      14,854
                      16,001

                      LIABILITIES:

                      Non-Federal liabilities:

                      2201
                      Accounts payable
                      121
                      159

                      2202
                      Interest payable
                      38
                      40

                      2203
                      Debt
                      14,110
                      15,161

                      2204
                      Liabilities for loan guarantees
                      44
                      40

                      2999
                      Total liabilities
                      14,313
                      15,400

                      NET POSITION:

                      3300
                      Invested capital
                      541
                      601

                      4999
                      Total liabilities and net position
                      14,854
                      16,001