#

##

##

###

###

###

##

###

###

###

##

###

###

##

##

###

###

###

###

###

###

###

###

    [Appendix]
    [Other Materials]
    [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 financing
                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
                      2017 actual
                      2018 est.
                      2019 est.

                      Cumulative balance of direct loans outstanding:

                      1210
                      Outstanding, start of year
                      306,537
                      245,133
                      245,133

                      1251
                      Repayments: Net repayments and prepayments
                      –61,404

                      1290
                      Outstanding, end of year
                      245,133
                      245,133
                      245,133

             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 December 31,
                2017, Fannie Mae had received $116.1 billion under the PSPA (based on publicly available information as of year-end 2017,
                this amount is expected to increase by approximately $4.7 billion in 2018 due to an accounting-related write-down of deferred
                tax assets resulting from the enactment of tax reform legislation), and had made a total of $166.4 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
                      2016 actual
                      2017 actual

                      ASSETS:

                      Federal assets:

                      Investments in US securities:

                      1102
                      Treasury securities, par
                      31,277
                      30,799

                      1201
                      Non-Federal assets: Investments in non-Federal securities, net
                      7,985
                      21,340

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

                      1601
                      Mortgage Loans and Mortgage Related Securities
                      227,157
                      169,245

                      1601
                      Mortgage Loans and Mortgage Related Securities - Consolidated Trusts
                      2,851,304
                      2,997,964

                      1604
                      Direct loans and interest receivable, net
                      3,078,461
                      3,167,209

                      1606
                      Acquired Property, net
                      5,041
                      3,581

                      1699
                      Value of assets related to direct loans
                      3,083,502
                      3,170,790

                      Other Federal assets:

                      1801
                      Cash and other monetary assets
                      98,077
                      77,376

                      1901
                      Other assets
                      35,101
                      30,454

                      1999
                      Total assets
                      3,255,942
                      3,330,759

                      LIABILITIES:

                      Non-Federal liabilities:

                      2202
                      Interest payable
                      9,512
                      9,637

                      2203
                      Debt
                      351,568
                      291,289

                      2203
                      Debt - Consolidated Trusts
                      2,881,545
                      3,017,294

                      2207
                      Other
                      9,141
                      8,891

                      2999
                      Total liabilities
                      3,251,766
                      3,327,111

                      NET POSITION:

                      3300
                      Senior Preferred Stock
                      117,149
                      117,149

                      3300
                      Private Equity
                      –112,973
                      –113,501

                      3300
                      Noncontrolling Interest

                      3999
                      Total net position
                      4,176
                      3,648

                      4999
                      Total liabilities and net position
                      3,255,942
                      3,330,759

             Mortgage-backed Securities

             Status of Direct Loans (in millions of dollars)

                      Identification code 915–4987–0–4–371
                      2017 actual
                      2018 est.
                      2019 est.

                      Cumulative balance of direct loans outstanding:

                      1210
                      Outstanding, start of year
                      2,861,296
                      2,989,374
                      2,989,374

                      1231
                      Disbursements: Direct loan disbursements
                      630,753

                      1251
                      Repayments: Repayments and prepayments
                      –502,675

                      1290
                      Outstanding, end of year
                      2,989,374
                      2,989,374
                      2,989,374

             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
                      2017 actual
                      2018 est.
                      2019 est.

                      Cumulative balance of direct loans outstanding:

                      1210
                      Outstanding, start of year
                      308,114
                      266,681
                      250,000

                      1251
                      Repayments: Repayments and prepayments
                      –41,433
                      –16,681

                      1290
                      Outstanding, end of year
                      266,681
                      250,000
                      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 December 31,
                2017, Freddie Mac had received $71.3 billion under the PSPA (based on publicly available information as of year-end 2017,
                this amount is expected to increase by approximately $0.4 billion in 2018 due to an accounting-related write-down of deferred
                tax assets resulting from the enactment of tax reform legislation), and had made a total of $112.4 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
                      2016 actual
                      2017 actual

                      ASSETS:

                      Federal assets:

                      Investments in US securities:

                      1102
                      Treasury securities, par
                      23,579
                      17,507

                      1201
                      Non-Federal assets: Investments in non-Federal securities, net
                      55,673
                      47,202

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

                      1601
                      Mortgage Loans and Mortgage Related Securities
                      207,898
                      175,675

                      1601
                      Mortgage Loans and Mortgage Related Securities - Consolidated Trusts
                      1,666,352
                      1,738,858

                      1604
                      Direct loans and interest receivable, net
                      1,874,250
                      1,914,533

                      1606
                      Acquired property, net
                      1,272

                      1699
                      Value of assets related to direct loans
                      1,875,522
                      1,914,533

                      Other Federal assets:

                      1801
                      Cash and other monetary assets
                      41,758
                      36,838

                      1901
                      Other assets
                      18,730
                      14,576

                      1999
                      Total assets
                      2,015,262
                      2,030,656

                      LIABILITIES:

                      Non-Federal liabilities:

                      2202
                      Interest payable
                      5,890
                      5,990

                      2203
                      Debt
                      378,059
                      318,054

                      2203
                      Debt - Consolidated Trusts
                      1,621,782
                      1,691,524

                      2207
                      Other
                      6,021
                      9,838

                      2999
                      Total liabilities
                      2,011,752
                      2,025,406

                      NET POSITION:

                      3300
                      Senior Preferred Stock
                      72,336
                      72,336

                      3300
                      Private Equity
                      –68,826
                      –67,086

                      3999
                      Total net position
                      3,510
                      5,250

                      4999
                      Total liabilities and net position
                      2,015,262
                      2,030,656

             Mortgage-backed Securities

             Status of Direct Loans (in millions of dollars)

                      Identification code 914–4989–0–4–371
                      2017 actual
                      2018 est.
                      2019 est.

                      Cumulative balance of direct loans outstanding:

                      1210
                      Outstanding, start of year
                      1,817,855
                      1,920,616
                      1,920,616

                      1231
                      Disbursements: Direct loan disbursements
                      416,304

                      1251
                      Repayments: Repayments and prepayments
                      –313,543

                      1290
                      Outstanding, end of year
                      1,920,616
                      1,920,616
                      1,920,616

             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
                      2017 actual
                      2018 est.
                      2019 est.

                      Cumulative balance of direct loans outstanding:

                      1210
                      Outstanding, start of year
                      735,671
                      771,613
                      771,613

                      1231
                      Disbursements: Direct loan disbursements
                      8,457,329
                      8,457,329
                      8,457,329

                      1251
                      Repayments: Repayments and prepayments
                      –8,417,685
                      –8,457,329
                      –8,457,329

                      1264
                      Write-offs for default: Other adjustments, net (+ or -)
                      –3,702

                      1290
                      Outstanding, end of year
                      771,613
                      771,613
                      771,613

             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
                7,000 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
                      2016 actual
                      2017 actual

                      ASSETS:

                      Federal assets:

                      Investments in US securities:

                      1102
                      Treasury securities, par
                      1,511
                      887

                      Non-Federal assets:

                      1201
                      Investments in non-Federal securities, net
                      290,231
                      317,575

                      1206
                      Accounts receivable
                      1,201
                      1,515

                      1401
                      Net value of assets related to direct loans receivable: Direct loans receivable, gross
                      735,702
                      772,018

                      Other Federal assets:

                      1801
                      Cash and other monetary assets
                      5,488
                      3,944

                      1803
                      Property, plant and equipment, net
                      218
                      275

                      1901
                      Other assets
                      2,004
                      1,674

                      1999
                      Total assets
                      1,036,355
                      1,097,888

                      LIABILITIES:

                      2101
                      Federal liabilities: REFCORP and Affordable Housing Program
                      914
                      1,003

                      Non-Federal liabilities:

                      2202
                      Interest payable
                      1,225
                      1,339

                      2203
                      Debt
                      968,842
                      1,028,135

                      2207
                      Deposit funds and other borrowing
                      5,748
                      3,881

                      2207
                      Other
                      8,796
                      8,220

                      2999
                      Total liabilities
                      985,525
                      1,042,578

                      NET POSITION:

                      3100
                      Invested capital
                      50,830
                      55,310

                      4999
                      Total liabilities and net position
                      1,036,355
                      1,097,888

          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
                      2017 actual
                      2018 est.
                      2019 est.

                      Cumulative balance of direct loans outstanding:

                      1210
                      Outstanding, start of year
                      90,417
                      94,203
                      96,620

                      1231
                      Disbursements: Direct loan disbursements
                      333,452
                      344,455
                      355,821

                      1251
                      Repayments: Repayments and prepayments
                      –329,665
                      –341,997
                      –352,581

                      1263
                      Write-offs for default: Direct loans
                      –1
                      –41
                      –52

                      1290
                      Outstanding, end of year
                      94,203
                      96,620
                      99,808

             CoBank, ACB, which is headquartered outside Denver, Colorado, provides funding to eligible cooperatives nationwide and Agricultural
                Credit Associations (ACAs) 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 22 ACAs 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)

                         2016 act.
                         2017 act.
                         2018 est.
                         2019 est.

                         Beginning balance of net worth
                         7,800,245
                         8,653,830
                         8,897,129
                         9,360,662

                         Capital stock and participations issued
                         440,611
                         87,343
                         81,233
                         103,215

                         Capital stock and participations retired
                         29,108
                         25,890
                         31,753
                         48,432

                         Net income
                         954,624
                         961,547
                         939,902
                         962,298

                         Cash/Dividends/Patronage Distributions
                         –533,998
                         –573,129
                         –552,920
                         –543,234

                         Other, net
                         21,456
                         –206,572
                         27,071
                         –31,829

                         Ending balance of net worth
                         8,653,830
                         8,897,129
                         9,360,662
                         9,802,680

             Financing Activities (in thousands of dollars)

                         2016 act.
                         2017 act.
                         2018 est.
                         2019 est.

                         Beginning balance of outstanding system obligations
                         97,279,304
                         107,407,980
                         112,319,658
                         113,177,699

                         Consolidated systemwide and other bank bonds issued
                         46,805,926
                         38,993,663
                         40,280,362
                         41,609,519

                         Consolidated systemwide and other bank bonds retired
                         37,078,905
                         38,175,063
                         39,901,063
                         38,405,114

                         Consolidated systemwide notes, net
                         456,912
                         4,130,172
                         500,000
                         500,000

                         Other (Net)
                         –55,257
                         –37,094
                         –21,258
                         –15,203

                         Ending balance of outstanding system obligations
                         107,407,980
                         112,319,658
                         113,177,699
                         116,866,901

          Balance Sheet (in millions of dollars)

                      Identification code 912–4991–0–4–351
                      2016 actual
                      2017 actual

                      ASSETS:

                      Non-Federal assets:

                      1201
                      Cash and investment securities
                      29,492
                      29,146

                      1206
                      Accrued interest receivable on loans
                      321
                      364

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

                      1601
                      Direct loans, gross
                      90,416
                      94,202

                      1603
                      Allowance for estimated uncollectible loans and interest (-)
                      –519
                      –575

                      1699
                      Value of assets related to direct loans
                      89,897
                      93,627

                      1803
                      Other Federal assets: Property, plant and equipment, net
                      1,039
                      1,199

                      1999
                      Total assets
                      120,749
                      124,336

                      LIABILITIES:

                      2104
                      Federal liabilities: Resources payable to Treasury
                      1,498
                      1,353

                      Non-Federal liabilities:

                      2201
                      Consolidated systemwide and other bank bonds
                      107,408
                      112,320

                      2201
                      Notes payable and other interest-bearing liabilities
                      2,916
                      1,458

                      2202
                      Accrued interest payable
                      273
                      308

                      2999
                      Total liabilities
                      112,095
                      115,439

                      NET POSITION:

                      3300
                      Cumulative results of operations
                      8,654
                      8,897

                      4999
                      Total liabilities and net position
                      120,749
                      124,336

             Farm Credit Banks

             Status of Direct Loans (in millions of dollars)

                      Identification code 912–4992–0–4–371
                      2017 actual
                      2018 est.
                      2019 est.

                      Cumulative balance of direct loans outstanding:

                      1210
                      Outstanding, start of year
                      123,454
                      126,994
                      131,867

                      1231
                      Disbursements: Direct loan disbursements
                      196,240
                      206,791
                      216,736

                      1251
                      Repayments: Repayments and prepayments
                      –192,699
                      –201,907
                      –211,051

                      1263
                      Write-offs for default: Direct loans
                      –1
                      –11
                      –12

                      1290
                      Outstanding, end of year
                      126,994
                      131,867
                      137,540

             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, 2017: 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, 2017, provided funds to one Federal Land Credit Association (FLCA) and
                46 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)

                         2016 act.
                         2017 act.
                         2018 est.
                         2019 est.

                         Beginning balance of net worth
                         9,149,023
                         9,480,347
                         9,930,452
                         10,081,735

                         Capital stock and participations issued
                         226,361
                         246,055
                         248,648
                         249,028

                         Capital stock and participations retired
                         113,897
                         50,415
                         8,417
                         11,566

                         Surplus Retired
                         –4,633
                         –5,866
                         0
                         0

                         Net income
                         1,026,457
                         1,084,095
                         1,015,239
                         1,085,944

                         Cash/Dividends/Patronage Distributions
                         –695,451
                         –847,192
                         –986,239
                         –1,055,119

                         Other, net
                         –116,779
                         11,696
                         –117,948
                         –143,498

                         Ending balance of net worth
                         9,480,347
                         9,930,452
                         10,081,735
                         10,206,524

             Financing Activities (in thousands of dollars)

                         2016 act.
                         2017 act.
                         2018 est.
                         2019 est.

                         Beginning balance of outstanding system obligations
                         133,822,885
                         144,502,285
                         145,600,456
                         151,018,538

                         Consolidated systemwide and other bank bonds issued
                         242,160,591
                         226,875,182
                         237,904,012
                         239,397,945

                         Consolidated systemwide and other bank bonds retired
                         236,530,182
                         220,736,779
                         233,344,751
                         232,520,954

                         Consolidated systemwide notes, net
                         5,068,965
                         –5,052,998
                         858,821
                         232,001

                         Other (Net)
                         –19,974
                         12,766
                         0
                         0

                         Ending balance of outstanding system obligations
                         144,502,285
                         145,600,456
                         151,018,538
                         158,127,530

          Balance Sheet (in millions of dollars)

                      Identification code 912–4992–0–4–371
                      2016 actual
                      2017 actual

                      ASSETS:

                      Non-Federal assets:

                      1201
                      Cash and investment securities
                      31,403
                      29,276

                      1206
                      Accrued Interest Receivable
                      554
                      648

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

                      1601
                      Direct loans, gross
                      123,453
                      126,994

                      1603
                      Allowance for estimated uncollectible loans and interest (-)
                      –45
                      –48

                      1699
                      Value of assets related to direct loans
                      123,408
                      126,946

                      1803
                      Other Federal assets: Property, plant and equipment, net
                      629
                      577

                      1999
                      Total assets
                      155,994
                      157,447

                      LIABILITIES:

                      2104
                      Federal liabilities: Resources payable to Treasury
                      506
                      412

                      Non-Federal liabilities:

                      2201
                      Consolidated systemwide and other bank bonds
                      144,502
                      145,600

                      2201
                      Notes payable and other interest-bearing liabilities
                      1,166
                      1,063

                      2202
                      Accrued interest payable
                      340
                      442

                      2999
                      Total liabilities
                      146,514
                      147,517

                      NET POSITION:

                      3300
                      Cumulative results of operations
                      9,480
                      9,930

                      4999
                      Total liabilities and net position
                      155,994
                      157,447

             Federal Agricultural Mortgage Corporation

             Status of Guaranteed Loans (in millions of dollars)

                      Identification code 912–4993–0–4–351
                      2017 actual
                      2018 est.
                      2019 est.

                      Cumulative balance of guaranteed loans outstanding:

                      2210
                      Outstanding, start of year
                      17,248
                      18,644
                      18,644

                      2231
                      Disbursements of new guaranteed loans
                      4,668

                      2251
                      Repayments and prepayments
                      –3,272

                      2290
                      Outstanding, end of year
                      18,644
                      18,644
                      18,644

                      Memorandum:

                      2299
                      Guaranteed amount of guaranteed loans outstanding, end of year
                      2,299

                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, 2017, 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
                      2016 actual
                      2017 actual

                      ASSETS:

                      Non-Federal assets:

                      1201
                      Investment in securities
                      3,001
                      2,235

                      1206
                      Receivables, net
                      165
                      134

                      Net value of assets related to direct loans receivable:

                      1401
                      Direct loans receivable, gross
                      12,434
                      14,844

                      1402
                      Interest receivable
                      87
                      110

                      1499
                      Net present value of assets related to direct loans
                      12,521
                      14,954

                      1801
                      Other Federal assets: Cash and other monetary assets
                      314
                      367

                      1999
                      Total assets
                      16,001
                      17,690

                      LIABILITIES:

                      Non-Federal liabilities:

                      2201
                      Accounts payable
                      159
                      51

                      2202
                      Interest payable
                      40
                      62

                      2203
                      Debt
                      15,161
                      16,846

                      2204
                      Liabilities for loan guarantees
                      40
                      37

                      2999
                      Total liabilities
                      15,400
                      16,996

                      NET POSITION:

                      3300
                      Invested capital
                      601
                      694

                      4999
                      Total liabilities and net position
                      16,001
                      17,690