10-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-K

(Mark one)

☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended March 31, 2021

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from __________ to __________

Commission File Number 0-01989

SENECA FOODS CORPORATION

(Exact name of registrant as specified in its charter)

New York (State or other jurisdiction of incorporation or organization)   3736 South Main Street Marion, New York (Address of principal executive offices) 16-0733425 (I.R.S. Employer Identification No.)     14505 (Zip Code)

Registrant’s telephone number, including area code: (315) 926-8100

Securities registered pursuant to Section 12(b) of the Exchange Act:

Title of Each Class	Trading Symbol	Name of each exchange on which registered
Common Stock Class A, $.25 Par	SENEA	NASDAQ Global Market
Common Stock Class B, $.25 Par	SENEB	NASDAQ Global Market

Securities registered pursuant to Section 12(g) of the Act: None

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ☐ No ☒

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes ☐ No ☒

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically, every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company" and “emerging growth company” in Rule 12b-2 of the Exchange Act.:

Large accelerated filer ☐ Accelerated filer ☒ Non-accelerated filer ☐ Smaller reporting company ☒ Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant has filed a report on and attestation to its management’s assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report. ☒

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act) Yes ☐ No ☒

The aggregate market value of the voting and non-voting common equity held by non‑affiliates of the Registrant as of September 25, 2020, the last business day of the Registrant’s most recently completed second fiscal quarter, was $232,133,327 (based on the closing share price per market reports generated from the NASDAQ Global Market System on September 25, 2020).

As of May 25, 2021, there were 7,343,745 shares of Class A common stock and 1,705,938 shares of Class B common stock outstanding.

DOCUMENTS INCORPORATED BY REFERENCE:

(1) Portions of the Annual Report to shareholders for fiscal year ended March 31, 2021 (the “2021 Annual Report”) applicable to Part I, Item 1, Part II, Items 5‑9A and Part IV, Item 15 of Form 10‑K.

(2) Portion of the Proxy Statement to be issued in connection with the Registrant’s annual meeting of stockholders (the “Proxy Statement”) applicable to Part III, Items 10-14 of Form 10-K.

SENECA FOODS CORPORATION

ANNUAL REPORT ON FORM 10-K

FOR THE FISCAL YEAR ENDED MARCH 31, 2021

TABLE OF CONTENTS

PART I.		Pages
Item 1.	Business	1-4
Item 1A.	Risk Factors	5-10
Item 1B.	Unresolved Staff Comments	10
Item 2.	Properties	11
Item 3.	Legal Proceedings	12
Item 4.	Mine Safety Disclosures	12
PART II.
Item 5.	Market for Registrant’s Common Stock, Related Security Holder Matters and Issuer Purchases of Equity Securities	13
Item 6.	Selected Financial Data	13
Item 7.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	14
Item 7A.	Quantitative and Qualitative Disclosures about Market Risk	14
Item 8.	Financial Statements and Supplementary Data	14
Item 9.	Changes in and Disagreements with Accountants on Accounting and Financial Disclosure	14
Item 9A.	Controls and Procedures	14-16
Item 9B.	Other Information	16
PART III.
Item 10.	Directors, Executive Officers and Corporate Governance	17
Item 11.	Executive Compensation	17
Item 12.	Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters	17
Item 13.	Certain Relationships and Related Transactions, and Director Independence	17
Item 14.	Principal Accountant Fees and Services	17
PART IV.
Item 15.	Exhibits and Financial Statement Schedules	18-19
Item 16.	Form 10-K Summary	19
SIGNATURES		21

Forward-Looking Statements

Certain of the statements contained in this annual report on Form 10-K are forward-looking statements made within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 (Exchange Act). Forward-looking statements involve numerous risks and uncertainties. Forward-looking statements are not in the present or past tense and, in some cases, can be identified by the use of the words "will," "anticipate," "estimate," "expect," "project," "intend," "plan," "believe," "seeks," "should," "likely," "targets," "may", "can" and other expressions that indicate future trends and events. A forward-looking statement speaks only as of the date on which such statement is made and reflects management's analysis only as of the date thereof. Seneca Foods Corporation undertakes no obligation to update any forward-looking statement. The following factors, among others discussed herein and in the filings of Seneca Foods Corporation under the Exchange Act, could cause actual results and future events to differ materially from those set forth or contemplated in the forward-looking statements: the impact of the COVID-19 pandemic on our business, suppliers, customers, consumers and employees, costs and availability of raw materials, competition, cost controls, sales levels, governmental regulation, consumer preferences, industry trends, weather conditions, crop yields, natural disasters, recalls, litigation, reliance on third-parties, wage rates, and other factors. See also the factors described in "Part I, Item 1A. Risk Factors" and elsewhere in this report, and those described in the Company's filings under the Exchange Act.

PART I

Item 1

Business

History and Development of Seneca Foods Corporation

SENECA FOODS CORPORATION (the “Company”) is one of North America's leading providers of packaged vegetables with facilities located throughout the United States. The Company’s product offerings include canned, frozen and bottled produce and snack chips and its products are sold under private label as well as national and regional brands that the Company owns or licenses, including Seneca®, Libby’s®, Aunt Nellie’s®, READ®, Green Valley® and CherryMan®.

As of March 31, 2021, the Company’s facilities consisted of 22 packaging plants strategically located throughout the United States, two can manufacturing plants one of which also packages, three seed packaging operations, a farming operation and a logistical support network. The Company also maintains warehouses which are generally located adjacent to its packaging plants. The Company is a New York corporation and its headquarters is located at 3736 South Main Street, Marion, New York and its telephone number is (315) 926-8100.

The Company was founded in 1949 and has evolved through internal growth and strategic acquisitions. The Company pursues acquisitions when they are strategic and financially additive and meet its overall business needs. In 73 years of operation the Company has made over 50 strategic acquisitions, investments and alliances that have expanded its leadership in the packaged fruit and vegetable industry. Most recently, during 2021, the Company acquired a facility in Berlin, Wisconsin to aid its frozen business by expanding freezing capability and adding frozen celery production to the core fruit and vegetable business. The Company also engages in strategic sales of its assets from time to time, as it makes financial sense to do so. During 2021, the Company completed the sale of its prepared foods business as the nature of that business was not central to the Company’s primary business and the sale allowed for the continued focus and investment in the Company’s core fruit and vegetable business.

Available Information

The Company’s Internet address is www.senecafoods.com. The Company’s annual report on Form 10-K, the Company’s quarterly reports on Form 10-Q, current reports on Form 8-K and any amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Exchange Act are available on the Company’s web site, as soon as reasonably practicable after they are electronically filed with or furnished to the SEC. All such filings on the Company’s web site are available free of charge. Information on our website is not part of the Annual Report on Form 10-K.

In addition, the Company's website includes items related to corporate governance matters, including charters of various committees of the Board of Directors and the Company's Code of Business Conduct and Ethics. The Company intends to disclose on its website any amendment to or waiver of any provision of the Code of Business Conduct and Ethics that would otherwise be required to be disclosed under the rules of the SEC and NASDAQ.

1

Financial Information about Industry Segments

Entering 2021, the Company managed its business on the basis of three reportable segments which makeup its food operation – the primary segment being the packaging and sale of fruit and vegetables, secondarily, the packaging and sale of prepared food products and third being the packaging and sale of snack products. Other nonfood products round out the Company’s operations. During December 2021, the Company completed the sale of its prepared foods business, leaving two remaining reportable segments. The Company’s food operation constituted 98% of total sales in 2021, of which approximately 81% is canned vegetable packaging, 6% is canned fruit packaging, 7% is frozen fruit and vegetable packaging, 5% is prepared foods prior to the sale, and 1% is chip packaging. The non-food operation, which is primarily related to the sale of cans and ends and outside revenue generated from our trucking and aircraft operations, represents 2% of the Company’s total sales.

Narrative Description of Business

Principal Products and Markets

Food Packaging

The Company’s principal products include canned fruit and vegetables, frozen vegetables and other food products. The products are sold nationwide by major grocery outlets, including supermarkets, mass merchandisers, limited assortment stores, club stores and dollar stores. Additionally, products are sold to food service distributors, industrial markets, other food packagers, export customers in 90 countries and federal, state and local governments for school and other feeding programs. Food packaging operations are primarily supported by plant locations in New York, Michigan, Oregon, Wisconsin, Washington, Idaho, Illinois, and Minnesota. See Note 14 of Item 8, Financial Statements and Supplementary Data, for additional information about the Company’s segments.

The following table summarizes net sales by major product category for the years ended March 31, 2021 and 2020:

	2021		2020
	(In thousands)
Canned vegetables	$	1,172,635	$	986,080
Frozen		102,339		119,044
Fruit Products		88,289		97,393
Prepared foods		71,866		105,044
Chip Products		10,999		11,475
Other		21,516		16,733
Total	$	1,467,644	$	1,335,769

Source and Availability of Raw Materials

The Company’s food packaging plants are located in major vegetable producing states. Vegetables are primarily obtained through supply contracts with independent growers.

Intellectual Property

The Company's most significant brand name, Libby's®, is held pursuant to a trademark license granted to the Company in March 1982 and renewable by the Company every 10 years for an aggregate period expiring in March 2081. The original licensor was Libby, McNeill & Libby, Inc., then an indirect subsidiary of Nestlé, S. A. ("Nestlé") and the license was granted in connection with the Company's purchase of certain of the licensor's canned vegetable operations in the United States. Corlib Brands Management, LTD acquired the license from Nestlé during 2006. The license is limited to vegetables which are shelf-stable, frozen, and thermally packaged, and includes the Company's major vegetable varieties – corn, peas and green beans – as well as certain other thermally packaged vegetable varieties and sauerkraut.

The Company is required to pay an annual royalty to Corlib Brands now known as Libby's Brand Holding, Ltd., who may terminate the license for non-payment of royalty, use of the trademark in sales outside the licensed territory, failure to achieve a minimum level of sales under the licensed trademark during any calendar year or a material breach or default by the Company under the agreement (which is not cured within the specified cure period). With the purchase of Signature Fruit Company, LLC, which also uses the Libby’s® brand name, the Company re-negotiated the license agreement and created a new, combined agreement based on Libby’s® revenue dollars for fruits, vegetables, and dry beans. During 2021, the Company and Libby’s Brand Holding, Ltd. renegotiated again to remove fruit from the license agreement. A total of $114,000 was paid as a royalty fee for the year ended March 31, 2021.

The Company also sells canned vegetables, frozen vegetables and other food products under several other brands for which the Company has obtained registered trademarks, including, Aunt Nellie’s®, CherryMan®, Green Valley®, READ®, and Seneca® and other regional brands.

2

Seasonal Business

While individual vegetables have seasonal cycles of peak production and sales, the different cycles are somewhat offsetting. Minimal food packaging occurs in the Company's last fiscal quarter ending March 31, which is the optimal time for maintenance, repairs and equipment changes in its packaging plants. The supply of commodities, current pricing, and expected new crop quantity and quality affect the timing and amount of the Company’s sales and earnings. When the seasonal harvesting periods of the Company's major vegetables are newly completed, inventories for these packaged vegetables are at their highest levels. For peas, the peak inventory time is mid-summer and for corn, the Company's highest volume vegetable, the peak inventory is in mid-autumn.

These seasonal fluctuations are illustrated in the following table, which presents certain unaudited quarterly financial information for the periods indicated:

	First Quarter		Second Quarter		Third Quarter		Fourth Quarter
	(In thousands)
Year ended March 31, 2021:
Net sales	$	288,165	$	390,294	$	484,392	$	304,793
Gross margin		48,562		48,943		77,704		56,976
Net earnings		20,706		18,105		72,460		14,829
Revolver outstanding (at quarter end)		34,406		62,611		-		1,000
Year ended March 31, 2020:
Net sales	$	264,925	$	370,002	$	392,971	$	307,871
Gross margin		19,174		24,055		52,277		46,382
Net earnings		1,103		4,635		24,428		21,022
Revolver outstanding (at quarter end)		136,014		133,338		114,689		106,924

Backlog

In the food packaging business, an end of year sales order backlog is not considered meaningful. Traditionally, larger customers provide tentative bookings for their expected purchases for the upcoming season. These bookings are further developed as data on the expected size of the related national harvests becomes available. In general, these bookings serve as a yardstick rather than as a firm commitment, since actual harvest results can vary notably from early estimates. In actual practice, the Company has substantially all of its expected seasonal production identified to potential sales outlets before the seasonal production is completed.

Competition and Customers

Competition in the food business is substantial with brand recognition and promotion, quality, service, and pricing being the major determinants in the Company’s relative market position. The Company believes that it is a major producer of canned vegetables, but some producers of canned, frozen and other forms of vegetable products have sales which exceed the Company's sales. The Company is aware of at least 13 competitors in the U.S. packaged vegetable industry, many of which are privately held companies.

During the past year, approximately 10% of the Company’s packaged foods, excluding cherry products, were sold under its own brands, or licensed trademarks, including Seneca®, Libby's®, Aunt Nellie's®, Green Valley® and READ®. The remaining 90% of packaged foods were sold under private labels, food service, international, contracting packaging, industrial, prepared foods, chips, and cherry products (including the CherryMan® brand) segments.

The Company's principal branded products are its Libby’s canned vegetable products, which rate among the top three national brands according to a leading market research firm.

The information under the heading "Results of Operations in Management’s Discussion and Analysis of Financial Condition and Results of Operations" in the 2021 Annual Report is incorporated by reference.

3

Environmental Regulation

Environmental Protection

Environmental protection is an area that has been worked on diligently at each food packaging facility. In all locations, the Company has cooperated with federal, state, and local environmental protection authorities in developing and maintaining suitable antipollution facilities. In general, we believe our pollution control facilities are equal to or somewhat superior to those of our competitors and are within environmental protection standards. The Company does not expect any material capital expenditures to comply with environmental regulations in the near future.

There has been a broad range of proposed and promulgated state, national and international regulations aimed at reducing the effects of climate change. In the United States, there is a significant possibility that some form of regulation will be forthcoming at the federal level to address the effects of climate change. Such regulation could result in the creation of additional costs in the form of taxes, the restriction of output, investments of capital to maintain compliance with laws and regulations, or required acquisition or trading of emission allowances.

Environmental Litigation and Contingencies

In the ordinary course of its business, the Company is made a party to certain legal proceedings seeking monetary damages, including proceedings involving product liability claims, worker’s compensation and other employee claims, tort and other general liability claims, for which it carries insurance as well as patent infringement and related litigation. The Company is in a highly regulated industry and is also periodically involved in government actions for regulatory violations and other matters surrounding the manufacturing of its products, including, but not limited to, environmental, employee, and product safety issues. While it is not feasible to predict or determine the ultimate outcome of these matters, the Company does not believe that an adverse decision in any of these legal proceedings would have a material adverse impact on its financial position, results of operations, or cash flows.

Employment

As of the end of December 2020, the Company had approximately 3,000 employees of which 2,900 full time and 100 seasonal employees work in food packaging and 100 full time employees work in other activities. The number of employees increases by approximately 4,000 due to an increase in seasonal employees during our peak pack season.

The Company has six collective bargaining agreements with three unions covering approximately 840 of its full-time employees.  The terms of these agreements result in wages and benefits which are substantially the same for comparable positions for the Company’s non-union employees.  There are two agreements that will expire in calendar 2022, two agreements that will expire in calendar 2023, one agreement that will expire in calendar 2024, and one agreement that will expire in calendar 2025.

Domestic and Export Sales

The following table sets forth domestic and export sales:

	Fiscal Year
	2021			2020
	(In thousands, except percentages)
Net Sales:
United States	$	1,372,679		$	1,248,904
Export		94,965			86,865
Total Net Sales	$	1,467,644		$	1,335,769
As a Percentage of Net Sales:
United States		93.5	%		93.5	%
Export		6.5	%		6.5	%
Total		100.0	%		100.0	%

4

Item 1A

Risk Factors

The following factors as well as factors described elsewhere in this Form 10-K or in other filings by the Company with the Securities and Exchange Commission, could adversely affect the Company’s consolidated financial position, results of operations or cash flows. Other factors not presently known to us or that we presently believe are not material could also affect our business operations or financial results. The Company refers to itself as “we”, “our” or “us” in this section.

Vegetable Industry Risks

Excess capacity in the vegetable industry has a downward impact on selling price.

If canned vegetable categories decline, less shelf space will be devoted to these categories in the supermarkets. Fresh and perishable businesses are improving their delivery systems around the world and the availability of fresh produce is impacting the consumers purchasing patterns relating to processed vegetables. Our financial performance and growth are related to conditions in the United States’ vegetable packaging industry which is a mature industry with a modest growth rate during the last 10 years. Our net sales are a function of product availability and market pricing. In the vegetable packaging industry, product availability and market prices tend to have an inverse relationship: market prices tend to decrease as more product is available and to increase if less product is available. Product availability is a direct result of plantings, growing conditions, crop yields and inventory levels, all of which vary from year to year. Moreover, vegetable production outside the United States, particularly in Europe, Asia and South America, is increasing at a time when worldwide demand for certain products, is being impacted by the global economic slowdown. These factors may have a significant effect on supply and competition and create downward pressure on prices. In addition, market prices can be affected by the planting and inventory levels and individual pricing decisions of our competitors. Generally, market prices in the vegetable packaging industry adjust more quickly to variations in product availability than an individual packager can adjust its cost structure; thus, in an oversupply situation, a packager’s margins likely will weaken. We typically have experienced lower margins during times of industry oversupply.

In the past, the vegetable packaging industry has been characterized by excess capacity, with resulting pressure on our prices and profit margins. We have closed packaging plants in past years in response to the downward pressure on prices. There can be no assurance that our margins will improve in response to favorable market conditions or that we will be able to operate profitably during depressed market conditions.

Growing cycles and adverse weather conditions may decrease our results from operations.

Our operations are affected by the growing cycles of the vegetables we package. When the vegetables are ready to be picked, we must harvest and package them quickly or forego the opportunity to package fresh picked vegetables for an entire year. Most of our vegetables are grown by farmers under contract with us. Consequently, we must pay the contract grower for the vegetables even if we cannot or do not harvest or package them. Most of our production occurs during the second quarter (July through September) of our fiscal year, which corresponds with the quarter that the growing season ends for most of the produce packaged by us. A majority of our sales occur during the third and fourth quarters of each fiscal year due to seasonal consumption patterns for our products. Accordingly, inventory levels are highest during the second and third quarters, and accounts receivable levels are highest during the third and fourth quarters. Net sales generated during our third and fourth fiscal quarters have a significant impact on our results of operations. Because of these seasonal fluctuations, the results of any particular quarter, particularly in the first half of our fiscal year, will not necessarily be indicative of results for the full year or for future years.

We set our planting schedules without knowing the effect of the weather on the crops or on the entire industry’s production. Weather conditions during the course of each vegetable crop’s growing season will affect the volume and growing time of that crop. As most of our vegetables are produced in more than one part of the U.S., this somewhat reduces the risk that our entire crop will be subject to disastrous weather. The upper Midwest is the primary growing region for the principal vegetables which we pack, namely peas, green beans and corn, and it is also a substantial source of our competitors’ vegetable production. The adverse effects of weather-related reduced production may be partially mitigated by higher selling prices for the vegetables which are produced.

The commodity materials that we package or otherwise require are subject to price increases that could adversely affect our profitability.

The materials that we use, such as vegetables, steel (used to make cans), ingredients, pouches and other packaging materials as well as the electricity and natural gas used in our business, are commodities that may experience price volatility caused by external factors, including market fluctuations, availability, currency fluctuations and changes in governmental regulations and agricultural programs. General inventory positions of major commodities, such as field corn, soybeans and wheat, all commodities with which we must compete for acreage, can have dramatic effects on prices for those commodities, which can translate into similar swings in prices needed to be paid for our contracted commodities. These programs and other events can result in reduced supplies of these commodities, higher supply costs or interruptions in our production schedules. If prices of these commodities increase beyond what we can pass along to our customers, our operating income will decrease.

5

Risks Associated With Our Operations

COVID-19: Pandemics or disease outbreaks, such as the COVID-19 pandemic, may disrupt our business, including among other things, our supply chain, our manufacturing operations and customer and consumer demand for our products, and could have a material adverse impact on our business.

The ultimate impact that the recent COVID-19 outbreak or any future pandemic or disease outbreak will have on our business and our consolidated results of operations is uncertain. To date we have seen increased customer and consumer demand for our products as the COVID-19 pandemic reached the United States and consumers began pantry loading and increasing their at-home consumption as a result of increased social distancing and stay-at-home mandates. Increases in net sales by our company to supermarkets, mass merchants, warehouse clubs, wholesalers and ecommerce customers have more than offset declines at foodservice customers. However, this increased customer and consumer demand may decrease in the coming months.

The spread of pandemics or disease outbreaks such as COVID-19 may negatively affect our operations. If a significant percentage of our workforce or the workforce of our third party business partners is unable to work, including because of illness or travel or government restrictions in connection with the COVID-19 pandemic or any future pandemic or disease outbreak, our operations may be negatively impacted. Some of our workforce dwell in company provided housing and therefore outbreaks such as COVID-19 would need to be managed, to the extent possible, to meet health care protocols. Pandemics or disease outbreaks could result in a widespread health crisis that could adversely affect economies and financial markets, consumer spending and confidence levels resulting in an economic downturn that could affect customer and consumer demand for our products.

Our efforts to manage and mitigate these factors may be unsuccessful, and the effectiveness of these efforts depends on factors beyond our control, including the duration and severity of any pandemic or disease outbreak, as well as third party actions taken to contain its spread and mitigate public health effects.

The ultimate impact of the COVID-19 pandemic on our business will depend on many factors, including, among others, the duration of social distancing and stay-at-home mandates and whether a second or third wave of COVID-19 will affect the United States and the rest of North America, our ability to continue to operate our manufacturing facilities and maintain the supply chain without material disruption, and the extent to which macroeconomic conditions resulting from the pandemic and the pace of the subsequent recovery may impact consumer eating habits. We cannot predict the duration or scope of the disruption. Therefore, the financial impact cannot be reasonably estimated at this time.

We depend upon key customers.

Our products are sold in a highly competitive marketplace, which includes increased concentration and a growing presence of large-format retailers and discounters. Dependence upon key customers could lead to increased pricing pressure by these customers. A relatively limited number of customers account for a large percentage of the Company’s total net sales. The top ten customers represented approximately 50%, and 49% of net sales for 2021 and 2020, respectively. If we lose a significant customer or if sales to a significant customer materially decrease, our business, financial condition and results of operations may be materially and adversely affected.

If we do not maintain the market shares of our products, our business and revenues may be adversely affected.

All of our products compete with those of other national and regional food packaging companies under highly competitive conditions. The vegetable products which we sell under our own brand names not only compete with vegetable products produced by vegetable packaging competitors, but also compete with products we produce and sell to other companies who market those products under their own brand names, such as the Green Giant and Del Monte vegetables we sell under contract packing agreements and the vegetables we sell to various retail grocery chains which carry our customer’s own brand names.

The customers who buy our products to sell under their own brand names control the marketing programs for those products. In recent years, many major retail food chains have been increasing their promotions, offerings and shelf space allocations for their own vegetable brands, to the detriment of vegetable brands owned by the packagers, including our own brands. We cannot predict the pricing or promotional activities of our customers/competitors or whether they will have a negative effect on us. There are competitive pressures and other factors, which could cause our products to lose market share or result in significant price erosion that could materially and adversely affect our business, financial condition and results of operations.

6

Increases in logistics and other transportation-related costs could materially adversely impact our results of operations.

Our ability to competitively serve our customers depends on the availability of reliable and low-cost transportation. We use multiple forms of transportation to bring our products to market. They include trucks, intermodal, rail cars, and ships. Disruption to the timely supply of these services or increases in the cost of these services for any reason, including availability or cost of fuel, regulations affecting the industry, or labor shortages in the transportation industry, could have an adverse effect on our ability to serve our customers, and could materially and adversely affect our business, financial condition and results of operations.

If we are subject to product liability claims, we may incur significant and unexpected costs and our business reputation could be adversely affected.

Food packagers are subject to significant liability should the consumption of their products cause injury or illness. We work with regulators, the industry and suppliers to stay abreast of developments. A product liability judgment against us could also result in substantial and unexpected expenditures, affect consumer confidence in our products, and divert management’s attention from other responsibilities. Product liability claims may also lead to increased scrutiny by federal and state regulatory agencies and could have a material adverse effect on our financial condition and results of operation. Although we maintain comprehensive general liability insurance coverage, there can be no assurance that this level of coverage is adequate or that we will be able to continue to maintain our existing insurance or obtain comparable insurance at a reasonable cost, if at all. A product recall or a partially or completely uninsured judgment against us could materially and adversely affect our business, financial condition and results of operations.

We are increasingly dependent on information technology; disruptions, failures or security breaches of our information technology infrastructure could have a material adverse effect on our operations.

We may become exposed to potential liabilities with respect to the data that we collect, manage and process, and may incur legal costs if our information security policies and procedures are not effective or if we are required to defend our methods of collection, processing and storage of data. Future investigations, lawsuits or adverse publicity relating to our methods of handling data could adversely affect our business, results of operations, financial condition and cash flows due to the costs and negative market reaction relating to such developments. We may not have the resources or technical expertise to anticipate or prevent rapidly evolving types of cyber-attacks. Actual or anticipated attacks will cause us to incur increased costs, including costs to hire additional personnel, purchase additional protection technologies, train employees, and engage third-party experts and consultants. In addition, data and security breaches can also occur as a result of non-technical issues, including breach by us or by persons with whom we have commercial relationships that result in the unauthorized release of confidential information. Any compromise or breach of our security could result in violation of applicable privacy and other laws, significant legal and financial exposure, and a loss of confidence in our security measures, which could have a material adverse effect on our results of operations and our reputation.

We generate agricultural food packaging wastes and are subject to substantial environmental regulation.

As a food packager, we regularly dispose of produce wastes (silage) and processing water as well as materials used in plant operation and maintenance, and our plant boilers, which generate heat used in packaging, produce generally small emissions into the air. These activities and operations are regulated by federal and state laws and the respective federal and state environmental agencies. Occasionally, we may be required to remediate conditions found by the regulators to be in violation of environmental law or to contribute to the cost of remediating waste disposal sites, which we neither owned nor operated, but in which, we and other companies deposited waste materials, usually through independent waste disposal companies. Future possible costs of environmental remediation, contributions and penalties could materially and adversely affect our business, financial condition and results of operations.

Our production capacity for certain products and commodities is concentrated in a limited number of facilities, exposing us to a material disruption in production in the event that a disaster strikes.

We only have three plants that receive and produce fruit products and one plant that produces pumpkin products. We have two plants that manufacture empty cans, one with substantially more capacity than the other, which are not interchangeable since each plant cannot necessarily produce all the can sizes needed. Although we maintain property and business interruption insurance coverage, there can be no assurance that this level of coverage is adequate in the event of a catastrophe or significant disruption at these or other Company facilities. If such an event occurs, it could materially and adversely affect our business, financial condition and results of operations.

We may undertake acquisitions or product innovations and may have difficulties integrating them or may not realize the anticipated benefits.

In the future, we may undertake acquisitions of other businesses or introduce new products, although there can be no assurances that these will occur. Such undertakings involve numerous risks and significant investments. There can be no assurance that we will be able to identify and acquire acquisition candidates on favorable terms, to profitably manage or to successfully integrate future businesses that we may acquire or new products we may introduce without substantial costs, delays or problems. Any of these outcomes could materially and adversely affect our business, financial condition and results of operations.

7

We are dependent upon a seasonal workforce and our inability to hire sufficient employees may adversely affect our business.

At the end of our 2021 fiscal year, we had approximately 3,000 employees of which 2,900 full time and 100 seasonal employees worked in food packaging and 100 employees worked in other activities. During the peak summer harvest period, we hire up to approximately 4,000 seasonal employees to help package vegetables. If there is a shortage of seasonal labor, especially during 2021 as a result of COVID-19 or if there is an increase to minimum wage rates, this could have a negative impact on our cost of operations. Many of our packaging operations are located in rural communities that may not have sufficient labor pools, requiring us to hire employees from other regions. An inability to hire and train sufficient employees during the critical harvest period could materially and adversely affect our business, financial condition and results of operations.

There may be increased governmental legislative and regulatory activity in reaction to consumer perception related to BPA.

There has been continued state legislative activity to ban Bisphenol-A ("BPA") from food contact packaging. These legislative decisions are predominantly driven by consumer perception that BPA may be harmful. These actions have been taken despite the scientific evidence and general consensus of United States and international government agencies that BPA is safe and does not pose a risk to human health. The legislative actions combined with growing public perception about food safety may require us to change some of the materials used as linings in our packaging materials. Failure to do so could result in a loss of sales as well as loss in value of the inventory utilizing BPA containing materials. The Company, in collaboration with other can makers as well as enamel suppliers, has decided to aggressively work to find alternative materials for can linings not manufactured using BPA. However, commercially acceptable alternatives are not immediately available for some applications and there can be no assurance that these steps will be successful. Less than 1% of our canned product volume (excluding and purchased canned products) still includes BPA.

The implementation of the Food Safety Modernization Act of 2011 may affect operations

The Food Safety Modernization Act ("FSMA") was enacted with the goal of enabling the Food and Drug Administration ("FDA") to better protect public health by strengthening the food safety system. FSMA was designed to focus the efforts of FDA on preventing food safety problems rather than relying primarily on reacting to problems after they occur. The law also provides FDA with new enforcement authorities designed to achieve higher rates of compliance with prevention and risk-based food safety standards and to better respond to and contain problems when they do occur.  The increased inspections, mandatory recall authority of the FDA, increased scrutiny of foreign sourced or supplied food products, and increased records access may have an impact on our business. As we are already in a highly regulated business, operating under the increased scrutiny of more FDA authority does not appear likely to negatively impact our business.  The law also gives FDA important new tools to hold imported foods to the same standards as domestic foods.

The Company’s results are dependent on successful marketplace initiatives and acceptance by consumers of the Company’s products.

The Company’s product introductions and product improvements, along with its other marketplace initiatives, are designed to capitalize on new customer or consumer trends.  The FDA recently issued a statement on sodium which referred to an Institute of Medicine statement that too much sodium is a major contributor to high blood pressure. Some of our products contain a moderate amount of sodium per recommended serving, which is based on consumer’s preferences for taste.  In order to remain successful, the Company must anticipate and react to these new trends and develop new products or packages to address them. While the Company devotes significant resources to meeting this goal, we may not be successful in developing new products or packages, or our new products or packages may not be accepted by customers or consumers.

Financing Risks

Global economic conditions may materially and adversely affect our business, financial condition and results of operations.

Unfavorable economic conditions, including the impact of recessions in the United States and throughout the world, may negatively affect our business and financial results. These economic conditions could negatively impact (i) consumer demand for our products, (ii) the mix of our products’ sales, (iii) our ability to collect accounts receivable on a timely basis, (iv) the ability of suppliers to provide the materials required in our operations and (v) our ability to obtain financing or to otherwise access the capital markets. The strength of the U.S. dollar versus other world currencies could result in increased competition from imported products and decreased sales to our international customers. A prolonged recession could result in decreased revenue, margins and earnings. Additionally, the economic situation could have an impact on our lenders or customers, causing them to fail to meet their obligations to us. The occurrence of any of these risks could materially and adversely affect our business, financial condition and results of operations.

8

Our ability to manage our working capital and our Revolver is critical to our success.

As of March 31, 2021, we had approximately $169.4 million of total indebtedness, including various debt agreements and a $1.0 million outstanding balance on our revolving credit facility (“Revolver”).  Scheduled debt service for fiscal 2021 is $28.3 million. During our second and third fiscal quarters, our operations generally require more cash than is available from operations.  In these circumstances, it is necessary to borrow under our Revolver.  Our ability to obtain financing in the future through credit facilities will be affected by several factors, including our creditworthiness, our ability to operate in a profitable manner and general market and credit conditions.  Significant changes in our business or cash outflows from operations could create a need for additional working capital.  An inability to obtain additional working capital on terms reasonably acceptable to us or access the Revolver would materially and adversely affect our operations. Additionally, if we need to use a portion of our cash flows to pay principal and interest on our debt, it will reduce the amount of money we have for operations, working capital, capital expenditures, expansions, acquisitions or general corporate or other business activities. 

Failure to comply with the requirements of our debt agreements and Revolver could have a material adverse effect on our business.

Our debt agreements and Revolver contain financial and other restrictive covenants which, among other things, limit our ability to borrow money, including with respect to the refinancing of existing indebtedness. These provisions may limit our ability to conduct our business, take advantage of business opportunities and respond to changing business, market and economic conditions. In addition, they may place us at a competitive disadvantage relative to other companies that may be subject to fewer, if any, restrictions. Failure to comply with the requirements of our Revolver and debt agreements could materially and adversely affect our business, financial condition and results of operations. We have pledged our accounts receivable, inventory and the capital stock or other ownership interests that we own in our subsidiaries to secure the Revolver. If a default occurred and was not cured, secured lenders could foreclose on this collateral.

Risks Relating to Our Stock

Our existing shareholders, if acting together, may be able to exert control over matters requiring shareholder approval.

Holders of our Class B common stock are entitled to one vote per share, while holders of our Class A common stock are entitled to one-twentieth of a vote per share. In addition, holders of our 10% Cumulative Convertible Voting Preferred Stock, Series A, our 10% Cumulative Convertible Voting Preferred Stock, Series B and, solely with respect to the election of directors, our 6% Cumulative Voting Preferred Stock, which we refer to as our voting preferred stock, are entitled to one vote per share. As of March 31, 2021, holders of Class B common stock and voting preferred stock held 88.1% of the combined voting power of all shares of capital stock then outstanding and entitled to vote. These shareholders, if acting together, would be in a position to control the election of our directors and to effect or prevent certain corporate transactions that require majority or supermajority approval of the combined classes, including mergers and other business combinations. This may result in us taking corporate actions that you may not consider to be in your best interest and may affect the price of our common stock.

As of March 31, 2021, our current executive officers and directors beneficially owned 9.3% of our outstanding shares of Class A common stock, 44.2% of our outstanding shares of Class B common stock and 10.8% of our voting preferred stock, or 29.1% of the combined voting power of our outstanding shares of capital stock. This concentration of voting power may inhibit changes in control of the Company and may adversely affect the market price of our common stock.

Our certificate of incorporation and bylaws contain provisions that discourage corporate takeovers.

Certain provisions of our certificate of incorporation and bylaws and provisions of the New York Business Corporation Law may have the effect of delaying or preventing a change in control. Various provisions of our certificate of incorporation and bylaws may inhibit changes in control not approved by our directors and may have the effect of depriving shareholders of any opportunity to receive a premium over the prevailing market price of our common stock in the event of an attempted unsolicited takeover. In addition, the existence of these provisions may adversely affect the market price of our common stock. These provisions include:

● a classified board of directors;

● a requirement that special meetings of shareholders be called only by our directors or holders of 25% of the voting power of all shares outstanding and entitled to vote at the meeting;

● our board of directors has the power to classify and reclassify any of our unissued shares of capital stock into shares of capital stock with such preferences, rights, powers and restrictions as the board of directors may determine;

● the affirmative vote of two thirds of the shares present and entitled to vote is required to amend our bylaws or remove a director; and

● under the New York Business Corporation Law, in addition to certain restrictions which may apply to “business combinations” involving us and an “interested shareholder”, a plan for our merger or consolidation must be approved by two-thirds of the votes of all outstanding shares entitled to vote thereon. See “Our existing shareholders, if acting together, may be able to exert control over matters requiring shareholder approval.” 

9

We have not paid dividends on our common stock in the past.

We have not declared or paid any cash dividends on our common stock in the past. In addition, payment of cash dividends on our common stock is not permitted by the terms of our revolving credit facility. This policy may be revisited under the correct circumstances in the future.

Other Risks

Tax legislation could impact future cash flows.

The Company uses the Last-In, First-Out (LIFO) method of inventory accounting. As of March 31, 2021, we had a LIFO reserve of $128.7 million which, at the U.S. corporate tax rate, represents approximately $32.2 million of income taxes, payment of which is delayed to future dates based upon changes in inventory costs. From time-to-time, discussions regarding changes in U.S. tax laws have included the potential of LIFO being repealed. Should LIFO be repealed, the $32.2 million of postponed taxes, plus any future benefit realized prior to the date of repeal, would likely have to be repaid over some period of time. Repayment of these postponed taxes will reduce the amount of cash that we would have available to fund our operations, working capital, capital expenditures, expansions, acquisitions or general corporate or other business activities. This could materially and adversely affect our business, financial condition and results of operations.

The tax status of our insurance subsidiary could be challenged resulting in an acceleration of income tax payments.

In conjunction with our workers’ compensation program, we operate a wholly owned insurance subsidiary, Dundee Insurance Company, Inc. We recognize this subsidiary as an insurance company for federal income tax purposes with respect to our consolidated federal income tax return. In the event the Internal Revenue Service (“IRS”) were to determine that this subsidiary does not qualify as an insurance company, we could be required to make accelerated income tax payments to the IRS that we otherwise would have deferred until future periods.

Item 1B

Unresolved Staff Comments

None
 

10

Item 2

Properties

The following table details the Company’s manufacturing plants and warehouses:

	Square
	Footage		Acres
	(000)
Food Group
Nampa, Idaho		243		16
Payette, Idaho		392		43
Princeville, Illinois		288		496
Hart, Michigan		361		78
Traverse City, Michigan		58		43
Blue Earth, Minnesota		286		429
Glencoe, Minnesota		662		798
LeSueur, Minnesota		82		7
Montgomery, Minnesota		549		1,644
Rochester, Minnesota		835		634
Geneva, New York		769		594
Leicester, New York		200		91
Dayton, Oregon		82		19
Dayton, Washington		250		28
Yakima, Washington		122		8
Baraboo, Wisconsin		625		13
Berlin, Wisconsin		95		125
Cambria East, Wisconsin		412		406
Cambria West, Wisconsin		212		305
Clyman, Wisconsin		438		724
Cumberland, Wisconsin		400		307
Gillett, Wisconsin		324		105
Janesville, Wisconsin		1,228		342
Mayville, Wisconsin		239		354
Oakfield, Wisconsin		229		2,277
Ripon, Wisconsin		634		87
Non-Food Group
Marion, New York		6
Penn Yan, New York		27		4
Albany, Oregon		75		5
Total		10,123		9,982

These facilities primarily package various vegetable products. Most of the facilities are owned by the Company. The Company is a lessee under a number of operating leases for equipment and real property used for packaging and warehousing.

The Company believes that these facilities are suitable and adequate for the purposes for which they are currently intended. All locations, although highly utilized, have the ability to expand as sales requirements justify. Because of the seasonal production cycles, the exact extent of utilization is difficult to measure.

11

Item 3

Legal Proceedings

See Note 15, "Legal Proceedings and Other Contingencies" to the Consolidated Financial Statements included in Item 8, Financial Statements and Supplemental Data.

See also Item 1, Business -- Environmental Regulation, for information regarding environmental legal proceedings.

Item 4

Mine Safety Disclosures

Not Applicable.

12

PART II

Item 5

Market for Registrant’s Common Stock, Related Security Holder Matters and Issuer Purchases of Equity Securities

Each class of preferred stock receives preference as to dividend payment and declaration over any common stock. In addition, refer to the information in the 2021 Annual Report, “Shareholder Information”, which is incorporated by reference.

Securities Authorized for Issuance Under Equity Compensation Plans

The 2007 Equity Incentive Plan (the “2007 Equity Plan”) was approved by shareholders at the Company’s annual meeting on August 10, 2007 and extended on July 28, 2017. The 2007 Equity Plan expires in August 2027 and originally authorized the issuance of up to 100,000 shares of either Class A Common Stock and Class B Common Stock or a combination of the two classes of stock. 2,297 shares were awarded in fiscal year 2021 under the terms of the 2007 Equity Plan. As of March 31, 2021, there were 52,752 shares available for distribution as part of future awards under the 2007 Equity Plan. No additional shares have been awarded under the 2007 Equity Plan through the date of this Form 10-K. 

There are no equity compensation plans not approved by the Company’s shareholders.

Common Stock Performance Graph

As a smaller reporting company, we are not required to provide disclosure pursuant to this Item.

Issuer Purchases of Equity Securities

											Maximum Number (or
											Approximate Dollar
	Total Number of Shares				Average Price Paid per				Total Number of Shares		Value) of Shares that
	Purchased (1)				Share				Purchased as Part of		May Yet Be Purchased
	Class A		Class B		Class A		Class B		Publicly Announced		Under the Plans or
Period	Common		Common		Common		Common		Plans or Programs (2)(3)		Programs (2)
1/01/21 - 1/31/21		-		-	$	-	$	-		-
2/01/21 - 2/29/21		19,500		-	$	51.53	$	-		-
3/01/21 - 3/31/21		15,031		-	$	58.59	$	-		531
Total		34,531		-	$	54.60	$	-		531		-

(1) No shares were purchased under the Company's share repurchase program. The purchases were made in open market transactions by the Trustees of the Seneca Foods Corporation Employees' Savings Plan, and the Seneca Foods, L.L.C. 401(k) Retirement Savings Plan to provide matching employee contributions under the Plans.

(2) In 2012 the Company's Board of Directors authorized the repurchase of the Company's stock. The number of shares authorized for repurchase increased from time to time, most recently on March 10, 2015 when the repurchase program was increased to 2,500,000 shares. During 2021, the share repurchase program was terminated. Prior to the termination of the program, the Company did not repurchase any shares in 2021.

(3) During 2021, the Company launched a tender offer to purchase from its stockholders up to $75 million in value of shares of its Class A common stock. The tender offer resulted in the Company purchase of 531 shares of common stock.

Item 6

Selected Financial Data

As a smaller reporting company, we are not required to provide disclosure pursuant to this Item.

13

Item 7

Management’s Discussion and Analysis of Financial Condition and Results of Operations

Refer to the information in the 2021 Annual Report, “Management’s Discussion and Analysis of Financial Condition and Results of Operations”, which is incorporated by reference.

Item 7A

Quantitative and Qualitative Disclosures about Market Risk

As a smaller reporting company, we are not required to provide disclosure pursuant to this Item.

Item 8

Financial Statements and Supplementary Data

Refer to the information in the 2021 Annual Report, "Consolidated Financial Statements and Notes thereto including Report of Independent Registered Public Accounting Firm," which is incorporated by reference.

Item 9

Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

None.

Item 9A

Controls and Procedures

Evaluation of Disclosure Controls and Procedures

Our management, with the participation of our Chief Executive Officer and Chief Financial Officer, evaluated the effectiveness of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act), as of March 31, 2021. Based upon this evaluation, our Chief Executive Officer and Chief Financial Officer concluded that, as of March 31, 2021, the Company’s disclosure controls and procedures: (1) were designed to ensure that material information relating to the Company is made known to our Chief Executive Officer and Chief Financial Officer by others within those entities, particularly during the period in which this report was being prepared, so as to allow timely decisions regarding required disclosure and (2) were effective, in that they provide reasonable assurance that information required to be disclosed by the Company in the reports we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms.

Management’s Annual Report on Internal Control Over Financial Reporting

Our management is responsible for establishing and maintaining adequate internal control over the Company’s financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act). Because of its inherent limitations, internal control over financial reporting may not prevent or detect all misstatements. Projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Our management assessed the effectiveness of the Company’s internal control over financial reporting as of March 31, 2021. In making this assessment, our management used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) in Internal Control-Integrated Framework (2013). Based on our assessment, management believes that, as of March 31, 2021, our internal control over financial reporting is effective based on those criteria.

The Company’s independent registered public accountant has issued its report on the effectiveness of the Company’s internal control over financial reporting. The report appears on the next page.

14

Report of Independent Registered Public Accounting Firm on Internal Control Over Financial Reporting

To the Stockholders and Board of Directors of Seneca Foods Corporation

Opinion on Internal Control over Financial Reporting

We have audited the internal control over financial reporting as of March 31, 2021 of Seneca Foods Corporation (the “Company”), based on criteria established in Internal Control-Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (the “COSO framework”). In our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of March 31, 2021, based on criteria established in the COSO framework.

We also have audited the accompanying consolidated balance sheets of the Company as of March 31, 2021 and 2020, the related consolidated statements of net earnings, comprehensive income (loss), stockholders' equity, and cash flows for each of the years in the two-year period ended March 31, 2021, and the related notes (collectively referred to as the “financial statements”), in accordance with the standards of the Public Company Accounting Oversight Board (United States). Our report dated June 11, 2021, expresses an unqualified opinion.

Basis for Opinion

The Company's management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting included in the accompanying Item 9A, Management’s Annual Report on Internal Control Over Financial Reporting. Our responsibility is to express an opinion on the Company's internal control over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audit also included performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.

Definition and Limitations of Internal Control over Financial Reporting

A company's internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company's internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company's assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

/s/ Plante Moran, P.C.

We have served as the Company’s auditor since 2019.

Southfield, Michigan
June 11. 2021

15

Changes in Internal Control over Financial Reporting

There was no change in our internal control over financial reporting (as defined in rules 13a-15(f) and 15d-15(f) under the Exchange Act) during the quarter ended March 31, 2021 that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting.

Item 9B

Other Information

None.

16

PART III

Item 10

Directors, Executive Officers and Corporate Governance

The information regarding directors is incorporated herein by reference from the section entitled “Information Concerning Directors” in the Company’s definitive Proxy Statement (“Proxy Statement”) to be filed pursuant to Regulation 14A of the Securities Exchange Act of 1934, as amended, for the Company’s Annual Meeting of Stockholders to be held on August 11, 2021. The Proxy Statement will be filed within 120 days after the end of the Company’s fiscal year ended March 31, 2021.

The information regarding executive officers is incorporated herein by reference from the section entitled “Executive Officers” in the Proxy Statement.

The information regarding compliance with Section 16(a) of the Exchange Act is incorporated herein by reference from the section entitled “Delinquent Section 16(a) Reports” in the Proxy Statement.

Information regarding the Company’s code of business conduct and ethics found in the subsection captioned “Available Information” in Item 1 of Part I hereof is also incorporated herein by reference into this Item 10.

The information regarding the Company’s audit committee, its members and the audit committee financial experts is incorporated herein by reference from the subsection entitled “Audit Committee” in the section entitled “Board Governance” in the Proxy Statement.

Item 11

Executive Compensation

The information included under the following captions in the Proxy Statement is incorporated herein by reference: “Compensation Discussion and Analysis,” “Summary Compensation Table,” “Outstanding Equity Awards at 2021 Fiscal Year-End,” “Pension Benefits,” “Compensation of Directors” and “Compensation Committee Interlocks.” The information included under the heading “Compensation Committee Report” in the Proxy Statement is incorporated herein by reference; however, this information shall not be deemed to be “soliciting material” or to be “filed” with the SEC or subject to Regulation 14A or 14C, or to the liabilities of Section 18 of the Exchange Act.

Item 12

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Information regarding security ownership of certain beneficial owners and management is incorporated herein by reference from the sections entitled “Security Ownership of Certain Beneficial Owners” and “Security Ownership of Management and Directors” in the Proxy Statement.

Item 13

Certain Relationships and Related Transactions, and Director Independence

The information regarding transactions with related parties and director independence is incorporated herein by reference from the sections entitled “Independent Directors” and “Certain Transactions and Relationships” in the Proxy Statement.

Item 14

Principal Accountant Fees and Services

The information regarding principal accountant fees and services is incorporated herein by reference from the section entitled “Principal Accountant Fees and Services” in the Proxy Statement.

17

PART IV

Item 15

Exhibits and Financial Statement Schedule

A. Exhibits, Financial Statements, and Supplemental Schedule

1. Financial Statements ‑ the following consolidated financial statements of the Registrant, included in the 2021 Annual Report, are incorporated by reference in Item 8:

Consolidated Statements of Net Earnings – Years ended March 31, 2021 and 2020

Consolidated Statements of Comprehensive Income – Years ended March 31, 2021 and 2020

Consolidated Balance Sheets ‑ March 31, 2021 and 2020

Consolidated Statements of Cash Flows – Years ended March 31, 2021 and 2020

Consolidated Statements of Stockholders’ Equity – Years ended March 31, 2021 and 2020

Notes to Consolidated Financial Statements – Years ended March 31, 2021 and 2020

Reports of Independent Registered Public Accounting Firm

2. Supplemental Schedule - the following financial statement schedule, included in the 2021 Annual Report, is incorporated by reference in this item 15. 

Schedule II—Valuation and Qualifying Accounts
 

Report of Independent Registered Public Accounting Firm on Schedule

Other schedules have not been filed because the conditions requiring the filing do not exist or the required information is included in the consolidated financial statements, including the notes thereto.

3. Exhibits:

Exhibit Number              Description

3.1 The Company’s Restated Certificate of Incorporation, (incorporated by reference to the Company's Current Report on Form 8-K dated August 11, 2010).

3.2 The Company’s Bylaws (incorporated by reference to Exhibit 3.3 to the Company’s Quarterly Report on Form 10-Q/A filed August 18, 1995 for the quarter ended July 1, 1995)

3.3 Amendment to the Company’s Bylaws (incorporated by reference to Exhibit 3 to the Company’s Current Report on Form 8-K dated November 6, 2007)

4.1 Description of Capital Stock (incorporated by reference to Exhibit 4.1 to the Company’s Annual Report on Form 10-K for the fiscal year ended March 31, 2019)

10.1 Fourth Amended and Restated Loan and Security Agreement dated as of March 24, 2021 by and among Seneca Foods Corporation, Seneca Foods, LLC, Seneca Snack Company, Green Valley Foods, LLC and certain other subsidiaries of Seneca Foods Corporation, the financial institutions party thereto as lenders, as agent, issuing bank, and syndication agent, and BofA Securities, Inc. as lead arranger (incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K dated March 26, 2021).

10.2 Amended and Restated Loan and Guaranty Agreement as of May 28, 2020 by and among Seneca Foods Corporation, Seneca Foods, LLC, Seneca Snack Company, Green Valley Foods, LLC and certain other subsidiaries of Seneca Foods Corporation and Farm Credit East, ACA (incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K dated June 1, 2020).

10.3 Indemnification Agreement between the Company and the directors of the Company (incorporated by reference to Exhibit 10.3 to the Company’s Quarterly Report on Form 10-Q for the quarter ended September 26, 2020, filed November 4, 2020)

18

10.4* Seneca Foods Corporation Executive Profit Sharing Bonus Plan (incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K dated January 27, 2017)

10.5* Seneca Foods Corporation Manager Profit Sharing Bonus Plan (incorporated by reference to Exhibit 10.2 to the Company’s Current Report on Form 8-K dated January 27, 2017)

10.6* 2007 Equity Incentive Plan effective August 3, 2007 as extended on July 28, 2017 (incorporated by reference to Appendix A to the Company’s Proxy Statement dated June 28, 2007)

10.7* Seneca Foods Corporation Division Management Bonus Plan (incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K dated February 5, 2020)

10.8* Executive Transition Services Agreement dated as of August 31, 2020 between the Company and Kraig H. Kayser (incorporated by reference to Exhibit 10.1 to the Company’s Quarterly Report on Form 10-Q for the quarter ended September 26, 2020, filed November 4, 2020)

10.9* Supplemental Retirement Agreement between Seneca Foods Corporation and Kraig H. Kayser (incorporated by reference to Exhibit 10.2 to the Company’s Quarterly Report on Form 10-Q for the quarter ended September 26, 2020, filed November 4, 2020).

13 The material contained in the 2021 Annual Report to Shareholders under the following headings: “Management’s Discussion and Analysis of Financial Condition and Results of Operations”, Consolidated Financial Statements and Notes thereto including Independent Auditors’ Report, and “Shareholder Information” (filed herewith)

21 List of Subsidiaries (filed herewith)

23.1 Consent of Plante Moran, P.C. (filed herewith)

31.1 Certification of Paul L. Palmby pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (filed herewith)

31.2 Certification of Timothy J. Benjamin as Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (filed herewith)

32 Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (filed herewith)

101 .INS Inline XBRL Instance Document (filed herewith).  

101.1.SCH Inline XBRL Taxonomy Extension Schema Document (filed herewith).

101.2.CAL Inline XBRL Taxonomy Extension Calculation Linkbase Document (filed herewith).

101.3.DEF Inline XBRL Taxonomy Extension Definition Linkbase Document (filed herewith).

101.4.LAB Inline XBRL Taxonomy Extension Label Linkbase Document (filed herewith).

101.5.PRE Inline XBRL Taxonomy Extension Presentation Linkbase Document (filed herewith).

104 Cover page Interactive Data File (formatted as inline XBRL with applicable taxonomy extension information contained in Exhibits 101.*)

* Indicates management or compensatory agreement

Item 16

Form 10-K Summary

None.

19

SIGNATURES

Pursuant to the requirements of Section 13 or 15 (d) of the Exchange Act, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

SENECA FOODS CORPORATION /s/Timothy J. Benjamin  Timothy J. Benjamin Senior Vice President, Chief Financial Officer and Treasurer June 11, 2021

Pursuant to the requirements of the Exchange Act, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated:

Signature	Title	Date
/s/Arthur S. Wolcott	Chairman and Director	June 11, 2021
Arthur S. Wolcott
/s/Paul L. Palmby	President, Chief Executive Officer, Director	June 11, 2021
Paul L. Palmby
/s/Timothy J. Benjamin	Senior Vice President, Chief Financial Officer	June 11, 2021
Timothy J. Benjamin	and Treasurer
/s/Gregory R. Ide	Vice President, Controller, and Assistant Secretary	June 11, 2021
Gregory R. Ide	(Principal Accounting Officer)
/s/Kathryn J. Boor	Director	June 11, 2021
Kathryn J. Boor
/s/Peter R. Call	Director	June 11, 2021
Peter R. Call
/s/John P. Gaylord	Director	June 11, 2021
John P. Gaylord
/s/Linda K. Nelson	Director	June 11, 2021
Linda K. Nelson
/s/Michael R. Nozzolio	Director	June 11, 2021
Michael R. Nozzolio
/s/Donald Stuart	Director	June 11, 2021
Donald Stuart
/s/Keith A. Woodward	Director	June 11, 2021
Keith A. Woodward

20

EX-13

Exhibit 13

Management’s Discussion and Analysis of Financial Condition and Results of Operations

OVERVIEW

Our Business

Seneca is a leading provider of packaged fruits and vegetables, with facilities located throughout the United States. Its high quality products are primarily sourced from over 1,600 American farms. The Company’s product offerings include canned, frozen and bottled produce and snack chips. Its products are sold under private label as well as national and regional brands that the Company owns or licenses, including Seneca®, Libby’s®, Aunt Nellie’s®, Cherryman®, Green Valley® and READ®. The Company’s canned fruits and vegetables are sold nationwide by major grocery outlets, including supermarkets, mass merchandisers, limited assortment stores, club stores and dollar stores. The Company also sells its products to foodservice distributors, industrial markets, other food processors, export customers in over 90 countries and federal, state and local governments for school and other food programs. The Company packs canned vegetables as well as frozen vegetables under contract packing agreements.

All references to years are fiscal years ended March 31 unless otherwise indicated.

During March 2021, the Company completed the acquisition of a processing facility in central Wisconsin for $7.1 million. This acquisition will aid the Company’s frozen business by expanding freezing capability and adding frozen celery production to the core fruit and vegetable business.

In December 2020, the Company completed the sale of its prepared foods business to an unaffiliated buyer who was not a previous customer, resulting in a gain of $34.8 million. The nature of the prepared foods business was not central to Seneca’s primary business and the sale allowed for the continued focus and investment in the Company’s core fruit and vegetable business.

In November 2019, the Company executed an agreement with Del Monte Foods to purchase a plant in Wisconsin, and as part of that agreed to process certain quantities of canned vegetables for them on a contractual basis. At the same time, Seneca acquired equipment from two already closed facilities, which was relocated and utilized by existing Seneca facilities in order to improve efficiencies or expand production capacities. Any equipment that was unable to be utilized was disposed of in fiscal 2021. The idle facilities were acquired in fiscal 2021 with no plans of operation and are currently classified as assets held for sale on the consolidated balance sheet as of March 31, 2021.

In October 2019, the Company ceased production at its fruit processing plant in Sunnyside, Washington but continued to store, case and label products at this facility until late in fiscal 2020. In February 2020, the Company invested approximately $10 million and contributed the Sunnyside facility to acquire a 49% stake in CraftAg, LLC, a newly formed company which processes hemp.

The Company’s business strategies are designed to grow the Company’s market share and enhance the Company’s sales and margins and include: 1) expand the Company’s leadership in the packaged fruit and vegetable industry; 2) provide low cost, high quality vegetable products to consumers through the elimination of costs from the Company’s supply chain and investment in state-of-the-art production and logistical technology; 3) focus on growth opportunities to capitalize on higher expected returns; and 4) pursue strategic acquisitions that leverage the Company’s core competencies.

Impact of the COVID-19 Pandemic:

The effect of COVID-19 felt throughout the United States and the international community has had, and will continue to have, an impact on financial markets, economic conditions, and portions of our business and industry.

Business Impact – We have implemented a wide range of precautionary measures at our manufacturing facilities and other work locations in response to COVID-19. We have also been working closely with our supply chain partners to ensure that we can continue to provide uninterrupted service. To date, there has been minimal disruption in our supply chain network, including the supply of fruits and vegetables, packaging or other sourced materials. We also continue to work closely with our customers and have implemented measures to allocate order volumes to ensure a consistent supply across our retail partners during this period of high demand.

We continue to monitor the latest guidance from the CDC, FDA and other federal, state and local authorities regarding COVID-19 to ensure our safety protocols remain current to protect our employees, customers, suppliers and other business partners.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

Financial Impact to Date – We began to see a significant increase in net sales in the second half of March 2020 as the COVID-19 pandemic reached the United States and consumers began pantry loading and increasing their at-home consumption as a result of increased social distancing and stay-at-home mandates. The overall increase in net sales continued throughout 2021. Growth in the retail channel remained strong and exceeded declines in the foodservice and chain channels experienced due to the pandemic.

We have incurred incremental costs to take the precautionary health and safety measures described above, which partially offsets the net sales favorability in our operating results, however gross margin has increased in 2021 as compared to 2020. Most of the incremental costs impact our costs of goods sold and the remaining portion impacts our selling, general and administrative expenses.

As reflected above, the pandemic has overall to date had a positive impact on our operating results and our net cash provided by operating activities. As a result, during the third quarter of fiscal 2021 we repaid all outstanding borrowings under our revolving credit facility.

Expectations and Risk Factors in Light of the COVID-19 Pandemic - As discussed above, increased customer and consumer demand resulting from the COVID-19 pandemic, social distancing and stay-at-home mandates has had a material positive impact on our company’s net sales, net cash provided by operating activities and net leverage in 2021. However, the ultimate impact of the COVID-19 pandemic on our business will depend on many factors, including, among others, the duration of social distancing and stay-at-home mandates and whether an additional wave of COVID-19 will affect the United States and the rest of North America, our company’s ability to continue to operate our manufacturing facilities, retain a sufficient seasonal workforce, fill open full time positions, maintain our supply chain without material disruption, and procure ingredients, packaging and other raw materials when needed despite unprecedented demand in the food industry, and the extent to which macroeconomic conditions resulting from the pandemic and the pace of the subsequent recovery may impact consumer eating habits.

Internal controls over financial reporting have not been impacted by COVID-19. Management is continuously monitoring to ensure controls are effective and properly maintained.

Restructuring

During 2021, the Company recorded a restructuring charge of $0.2 million related to closed plants mostly for severance.

During 2020, the Company recorded a restructuring charge of $7.0 million related to the closing of plants in the Midwest and Northwest of which $5.3 million was for accelerated amortization of right-of-use operating lease assets, $2.4 million was mostly related to equipment moves and $1.2 million was related to severance. The Company also recorded a credit of $1.9 million for the reduced lease liability of previously impaired leases.

These charges are included under Plant Restructuring Charge in the Consolidated Statements of Net Earnings.

Divestitures, Other Charges and Credits

Other operating income in 2021 includes a gain on the sale of the prepared food business of $34.8 million. Additionally the Company recorded a loss of $0.8 million on the disposal of equipment from a sold Northwest plant, a loss on the sale of unused fixed assets of $0.4 million, a loss of $3.2 million on the disposition of equipment that was previously held for sale, and a charge of $0.2 for severance. The company also recorded a charge of $1.2 million for a supplemental early retirement plan.

Other operating income in 2020 includes a gain on the partial sale of a plant in the Midwest of $3.3 million and a gain on the sale of a plant in the Northwest of $8.2 million. The Company also recorded a gain on the sale of unused fixed assets of $1.2 million.

During 2021, the Company recorded an other-than-temporary impairment charge of $9.7 million to its equity method investment representing the difference between the carrying value of the Company’s investment and its proportionate share of the investment’s fair value. This charge was included in “Loss from equity investment” in the Company’s Consolidated Statements of Net Earnings.

2

Management’s Discussion and Analysis of Financial Condition and Results of Operations

Liquidity and Capital Resources

The Company’s primary cash requirements are to make payments on the Company’s debt, finance seasonal working capital needs and to make capital expenditures. Internally generated funds and amounts available under the revolving credit facility are the Company’s primary sources of liquidity, although the Company believes it has the ability to raise additional capital by issuing additional stock, if it desires.

Revolving Credit Facility

On March 24, 2021, the Company entered into a Fourth Amended and Restated Loan and Security Agreement with the lenders party thereto, Bank of America, N.A. as agent, issuing bank, and syndication agent, and BofA Securities, Inc. as lead arranger, that provides for a senior revolving credit facility of up to $400 million that is seasonally adjusted (the “Revolver”). Maximum borrowings under the Revolver total $300.0 million from April through July and $400.0 million from August through March. The Revolver balance as of March 31, 2021 was $1.0 million and is included in Long-Term Debt in the accompanying Consolidated Balance Sheet due to the Revolver’s March 24, 2026 maturity. In order to maintain availability of funds under the facility, the Company pays a commitment fee on the unused portion of the Revolver. The Revolver is secured by substantially all of the Company’s accounts receivable and inventories and contains borrowing base requirements as well as a financial covenant, if certain circumstances apply. The Company utilizes its Revolver for general corporate purposes, including seasonal working capital needs, to pay debt principal and interest obligations, and to fund capital expenditures and acquisitions. Seasonal working capital needs are affected by the growing cycles of the vegetables the Company packages. The majority of vegetable inventories are produced during the months of June through November and are then sold over the following year. Payment terms for vegetable produce are generally three months but can vary from a few days to seven months. Accordingly, the Company’s need to draw on the Revolver may fluctuate significantly throughout the year.

The Company believes that cash flows from operations and availability under its Revolver will provide adequate funds for the Company’s working capital needs, planned capital expenditures and debt service obligations for at least the next 12 months.

Seasonality

The Company’s revenues typically are highest in the second and third fiscal quarters. This is due, in part, because the Company sells canned and frozen vegetables to a co-pack customer on a bill and hold basis at the end of each pack cycle, which typically occurs during these quarters. In addition, the Company’s other fruit and vegetable sales exhibit seasonal increases in the third fiscal quarter due to increased retail demand during the holiday season.

	First Quarter		Second Quarter		Third Quarter		Fourth Quarter
	(In thousands)
Year ended March 31, 2021:
Net sales	$	288,165	$	390,294	$	484,392	$	304,793
Gross margin		48,562		48,943		77,704		56,976
Net earnings		20,706		18,105		72,460		14,829
Revolver outstanding (at quarter end)		34,406		62,611		-		1,000
Year ended March 31, 2020:
Net sales	$	264,925	$	370,002	$	392,971	$	307,871
Gross margin		19,174		24,055		52,277		46,382
Net earnings		1,103		4,635		24,428		21,022
Revolver outstanding (at quarter end)		136,014		133,338		114,689		106,924

3

Management’s Discussion and Analysis of Financial Condition and Results of Operations

Short-Term Borrowings

The maximum level of short-term borrowings outstanding during 2021 was lower as compared 2020 driven in part by increased sales resulting from the COVID-19 pandemic. The favorable impact that increased sales had on the Company’s short-term borrowings during 2021 was partially offset by increased expenditures due to implementing a wide range of precautionary measures at our manufacturing facilities and other work locations in response to COVID-19. The maximum level of short-term borrowings during 2020 was affected by lower inventory due to a smaller seasonal pack partially offset by the purchase of assets from Del Monte Foods and the investment in CraftAg.

The following table documents the quantitative data for Short-Term Borrowings during 2021 and 2020:

	Fourth Quarter						Year Ended
	2021			2020			2021			2020
				(In Thousands)
Reported end of period:
Revolver outstanding	$	1,000		$	106,924		$	1,000		$	106,924
Weighted average interest rate		1.38	%		2.59	%		1.38	%		2.59	%
Reported during period:
Maximum Revolver	$	1,000		$	118,790		$	107,967		$	151,477
Average Revolver outstanding	$	572		$	109,031		$	33,453		$	122,443
Weighted average interest rate		1.69	%		3.22	%		1.95	%		3.61	%

Long-Term Debt

On May 28, 2020 the Company entered into an Amended and Restated Loan and Guaranty Agreement with Farm Credit East, ACA that provides for a $100.0 million unsecured term loan. The amended and restated agreement with Farm Credit East has a maturity date of June 1, 2025 and converted the term loan to a fixed interest rate rather than a variable interest rate in addition to requiring quarterly principal payments of $1.0 million, which commenced during fiscal 2021. The Company incurred financing costs totaling $0.2 million which have been classified as a discount to the debt. This agreement contains certain covenants, including maintaining a minimum EBITDA and minimum tangible net worth.

As of March 31, 2021, scheduled maturities of long-term debt in each of the five succeeding fiscal years and thereafter are presented below. The March 31, 2021 Revolver balance of $1.0 million is presented as being due in fiscal 2026, based upon the Revolver’s March 24, 2026 maturity date (in thousands):

2022	$	4,500
2023		4,000
2024		4,000
2025		4,000
2026		81,869
Thereafter		216
Total	$	98,585

4

Management’s Discussion and Analysis of Financial Condition and Results of Operations

Restrictive Covenants

The Company’s debt agreements, including the Revolver and term loan, contain customary affirmative and negative covenants that restrict, with specified exceptions, the Company’s ability to incur additional indebtedness, incur liens, pay dividends on the Company’s capital stock, make other restricted payments, including investments, transfer all or substantially all of the Company’s assets, enter into consolidations or mergers, and enter into transactions with affiliates. The Company’s debt agreements also require the Company to meet certain financial covenants including a minimum EBITDA and minimum tangible net worth. The Revolver contains borrowing base requirements related to accounts receivable and inventories and also requires the Company to meet a financial covenant related to a minimum fixed charge coverage ratio if (a) an event of default has occurred or (b) availability on the Revolver is less than the greater of (i) 10% of the commitments then in effect and (ii) $25,000,000. The most restrictive financial covenant in the debt agreements is the minimum EBITDA within the Farm Credit term loan which for fiscal year end 2021 was greater than $50 million. The Company computes its financial covenants as if the Company were on the FIFO method of inventory accounting. The Company has met all such financial covenants as of March 31, 2021.

The Company's debt agreements limit the payment of dividends and other distributions. There is an annual total distribution limitation of $50,000, less aggregate annual dividend payments totaling $23,000 that the Company presently pays on two outstanding classes of preferred stock.

Capital Expenditures

Capital expenditures in 2021 totaled $71.5 million and there were 4 major projects in 2021 as follows; 1) $7.1 million for a facility in Berlin, Wisconsin, 2) $5.0 million for a facility and equipment in Albany, Oregon, 3) $4.4 million for a production line in Janesville, Wisconsin, 4) $2.5 million for a spray field in Cambia, Wisconsin. Capital expenditures in 2020 totaled $66.4 million and there were four major projects in 2020 as follows: 1) $10.0 million to buy the plant in Cambria, Wisconsin from Del Monte, 2) $9.6 million for equipment purchases from Del Monte, 3) $4.7 million for the Glencoe Freezer project and 4) $2.6 million for the completion of a warehouse in Hart, Michigan started in 2019. In addition, there were lease buyouts, equipment replacements and other improvements in 2021 and 2020.

Accounts Receivable

In 2021, accounts receivable decreased by $17.6 million or 16.0% versus 2020, due partially to lower sales volume in March 2021 compared to March 2020 and also the sale of our prepared foods business. In 2020, accounts receivable increased by $25.7 million or 30.6% versus 2019 due to higher sales volume in the fourth quarter of 2020 compared to 2019.

Inventories

In 2021, inventories decreased by $68.5 million or 16.6% primarily reflecting the effect of lower finished goods quantities due to increased sales demand outpacing the 2020 seasonal pack yields. The LIFO reserve balance was $128.7 million at March 31, 2021 versus $144.3 million at the prior year end.

The Company believes that the use of the LIFO method better matches current costs with current revenues.

5

Management’s Discussion and Analysis of Financial Condition and Results of Operations

Critical Accounting Policies

During the years ended March 31, 2021 and 2020, the Company sold certain finished goods inventory for cash on a bill and hold basis. The terms of the bill and hold agreement(s) provide that title to the specified inventory is transferred to the customer(s) prior to shipment and the Company has the right to payment (prior to physical delivery) which results in recorded revenue as determined under the revenue recognition standard.

Trade promotions are an important component of the sales and marketing of the Company’s branded products and are critical to the support of the business. Trade promotion costs, which are recorded as a reduction of net sales, include amounts paid to encourage retailers to offer temporary price reductions for the sale of the Company’s products to consumers, amounts paid to obtain favorable display positions in retail stores, and amounts paid to retailers for shelf space in retail stores. Accruals for trade promotions are recorded primarily at the time of sale of product to the retailer based on expected levels of performance. Settlement of these liabilities typically occurs in subsequent periods primarily through an authorized process for deductions taken by a retailer from amounts otherwise due to the Company. As a result, the ultimate cost of a trade promotion program is dependent on the relative success of the events and the actions and level of deductions taken by retailers for amounts they consider due to them. Final determination of the permissible deductions may take extended periods of time.

The Company assesses its long-lived assets for impairment whenever there is an indicator of impairment. Property, plant, and equipment are depreciated over their assigned lives. The assigned lives and the projected cash flows used to test impairment are subjective. If actual lives are shorter than anticipated or if future cash flows are less than anticipated, a future impairment charge or a loss on disposal of the assets could be incurred. Impairment losses are evaluated if the estimated undiscounted value of the cash flows is less than the carrying value. If such is the case, a loss is recognized when the carrying value of an asset exceeds its fair value.

Obligations and Commitments

As of March 31, 2021, the Company was obligated to make cash payments in connection with its debt, operating and finance leases, and purchase commitments. The effect of these obligations and commitments on the Company’s liquidity and cash flows in future periods are listed below. All of these arrangements require cash payments over varying periods of time. Certain of these arrangements are cancelable on short notice and others require additional payments as part of any early termination.

In addition, the Company has a defined benefit plan which is subject to certain actuarial assumptions. The funded status increased by $138.3 million during 2021 reflecting the actual fair value of plan assets and the projected benefit obligation as of March 31, 2021. During fiscal years 2021 and 2020, the actuarial loss in the pension plan’s projected benefit obligation was primarily driven by data revisions resulting in demographic losses as well as a decline in discount rates. Additionally, the Society of Actuaries released an updated mortality table for fiscal year 2020 and an updated mortality projection scale for both fiscal years 2020 and 2021 which partially offset the actuarial loss. Plan assets increased from $202.5 million as of March 31, 2020 to $348.9 million as of March 31, 2021 due primarily to a gain on plan assets of $103.2 million and a $73.0 million contribution by the Company.

The Plan was amended to freeze accruals to new hires and rehires effective January 1, 2020. This amendment triggered a curtailment event under ASC 715. The curtailment accelerated statement of earnings recognition of the unrecognized prior service cost resulting in $0.1 million curtailment charge in 2020.

During 2021, the Company entered into new finance and operating leases of approximately $3.7 million, based on the if-purchased value, which was primarily for agricultural and packaging equipment.

Purchase commitments represent estimated payments to growers for crops that will be grown during the calendar 2021 season.

Due to uncertainties related to uncertain tax positions, the Company is not able to reasonably estimate the cash settlements required in future periods.

The Company has no off-balance sheet debt or other unrecorded obligations other than operating lease obligations and purchase commitments noted above.

6

Management’s Discussion and Analysis of Financial Condition and Results of Operations

Standby Letters of Credit

The Company has standby letters of credit for certain insurance-related requirements. The majority of the Company’s standby letters of credit are automatically renewed annually, unless the issuer gives cancellation notice in advance. On March 31, 2021, the Company had $10.1 million in outstanding standby letters of credit. These standby letters of credit are supported by the Company’s Revolver and reduce borrowings available under the Revolver.

Cash Flows

In 2021, the Company’s cash and cash equivalents increased by $49.1 million, which is due to the net impact of $183.2 million provided by operating activities, $2.3 million provided by investing activities, and $136.3 million used in financing activities.

Operating Activities

Cash provided by operating activities totaled $183.2 million in 2021 as compared to $127.3 million of cash provided by operating activities in 2020, an increase of $55.9 million. The increase was largely due to higher net income, primarily attributable to the positive impact of increased base business unit volume on our net sales as a result of the COVID-19 pandemic. The 2021 earnings reflect a LIFO credit of $15.6 million that resulted in an increase in the tax payment deferral of $3.9 million. The increase in net cash provided by operating activities also reflected favorable working capital comparisons in fiscal 2021 compared to the fiscal 2020 comparisons, primarily comprised of accounts receivable, $57.6 million, and other current assets, $8.4 million. The increases were partially offset by an unfavorable working capital comparison for inventories of $21.6 million and a pension contribution made by the Company of $73.0 million in fiscal 2021 compared to a $26.0 million contribution in the previous year.

The cash requirements of the business fluctuate significantly throughout the year to coincide with the seasonal growing cycles of vegetables. The majority of the inventories are produced during the packing months, from June through November, and are then sold over the following year. Cash flow from operating activities is one of the Company’s main sources of liquidity.

Investing Activities

Cash provided by investing activities was $2.3 million for 2021, principally reflecting proceeds from the sales of assets of $73.7 million largely offset by $71.4 million of capital expenditures. Cash used by investing activities was $43.2 million for 2020, principally reflecting proceeds from the sale of assets of $22.5 million offset by $65.7 million of capital expenditures.

Financing Activities

Cash used in financing activities was $136.3 million in 2021 compared to $84.9 million in 2020, an increase of $51.4 million. The cash used in financing during 2021 is primarily comprised of a net decrease in the debt (primarily the Revolver) of $119.0 million compared to $48.7 million in the prior year. In addition, the Company purchased $4.4 million of treasury stock in 2021 compared to $12.7 million in 2020. Lastly, the Company made a $10.0 million investment in CraftAg during 2020.

Results of Operations - Fiscal 2021 versus Fiscal 2020

Net Sales:

The following table presents net sales by product category:

	2021		2020
	(In thousands)
Canned vegetables	$	1,172,635	$	986,080
Frozen		102,339		119,044
Fruit Products		88,289		97,393
Prepared foods		71,866		105,044
Chip Products		10,999		11,475
Other		21,516		16,733
Total	$	1,467,644	$	1,335,769

7

Management’s Discussion and Analysis of Financial Condition and Results of Operations

Net sales for 2021 totaled $1,467.6 million compared to $1,335.8 million for the prior year, an increase of $131.8 million. The overall increase was driven by a $186.6 million increase in canned vegetables sales along with a $4.7 million increase in other sales that was partially offset by declines in frozen sales of $16.7 million, fruit product sales of $9.1 million, and chip product sales of $0.4 million. Additionally, prepared foods sales decreased by $33.2 million in 2021 compared to 2020 due to the sale of the business in December 2020. The overall increase in sales is attributable to increased sales volume of $74.2 million and higher selling prices/ favorable sales mix of $57.6 million, both predominantly due to canned vegetables.

Operating Income:

The following table presents components of operating income as a percentage of net sales:

	2021			2020
	(In thousands)
Gross Margin		15.8	%		10.6	%
Selling, General, and Administrative expense		5.4	%		5.8	%
Plant Restructuring		0.0	%		0.5	%
Other Operating Income		-2.0	%		-0.9	%
Operating Income		12.3	%		5.3	%
Interest Expense, net		0.4	%		0.9	%

Gross margin as a percentage of net sales increased from 10.6% in 2020 to 15.8% in 2021 due to the favorable impact of higher selling prices and an improved selling mix outweighing the negative impact of a smaller than planned pack and incremental expenditures incurred for precautionary and safety measures taken for COVID-19.

Selling, general and administrative expense was at 5.4% of sales in 2021 and 5.8% of sales in 2020. The decrease as a percentage of net sales is primarily due to higher sales and the fixed nature of certain expenses.

Other operating income in 2021 includes a gain on the sale of the prepared food business of $34.8 million. Additionally the Company recorded a loss of $0.8 million on the disposal of equipment from a sold Northwest plant, a loss on the sale of unused fixed assets of $0.4 million, a loss of $3.2 million on the disposition of equipment that was previously held for sale, and a charge of $0.2 for severance. The Company also recorded a charge of $1.2 million for a supplemental early retirement plan. Other operating income in 2020 includes a gain on the partial sale of a plant in the Midwest of $3.3 million and a gain on the sale of a plant in the Northwest of $8.2 million. The Company also recorded a gain on the sale of unused fixed assets of $1.2 million.

Non-Operating Income:

The Company’s loss from equity investment was $11.5 million and $0.1 million for 2021 and 2020, respectively. During 2021, the Company recorded an other-than-temporary impairment charge of $9.7 million to its equity method investment representing the difference between the carrying value of the Company’s investment and its proportionate share of the investment’s fair value. This charge was included in “Loss from equity investment” in the Company’s Consolidated Statements of Net Earnings.

Interest expense, net, decreased from $11.8 million in 2020 to $6.1 million in 2021 due mostly to lower average Revolver borrowings during the year in 2021 versus 2020.

As a result of the aforementioned factors, continuing pre-tax earnings increased from $65.6 million in 2020 to pre-tax earnings of $160.0 million in 2021. The effective tax rate was 21.2% in 2021 and 22.0% in 2020. The decrease of 0.8 percentage points in the effective tax rate for the year is primarily the result of two items. The Coronavirus Aid, Relief, and Economic Security Act (CARES Act), among other things, allows NOLs incurred in taxable years beginning after December 31, 2017 and before January 01, 2021 to be carried back to each of the five preceding taxable years to generate a refund of previously paid income taxes. Seneca was able to carryback the NOL generated in the 2019 tax year at a 21% corporate tax rate to the 2015 tax year at a 35% corporate tax rate. The tax rate difference realized for the NOL carryback decreased the Company’s effective tax rate by 2.8%. See Footnote 8 for the full tax rate reconciliation.

8

Management’s Discussion and Analysis of Financial Condition and Results of Operations

Recently Issued Accounting Standards

In August 2018, the FASB issued ASU No. 2018-14, Compensation—Retirement Benefits—Defined Benefit Plans—General (Topic 715-20): Disclosure Framework—Changes to the Disclosure Requirements for Defined Benefit Plans, which modifies the disclosure requirements for defined benefit pension plans and other postretirement plans. ASU 2018-14 became effective for annual periods ending after December 15, 2020. The Company adopted the standard for its fiscal year ended March 31, 2021 and the adoption of ASU 2018-14 did not have an impact on the consolidated financial statements as this ASU only modified disclosure requirements. See Note 10 “Retirement Plants” and related disclosures.

In May 2020, the SEC issued a final rule that amends the financial statement requirements for acquisitions and dispositions of businesses. The amendments primarily relate to disclosures required by Rule 3-05 and Article 11 of Regulation S-X. Among other things, the final rule modifies the tests provided in Rule 1-02(w) of Regulation S-X used to determine whether a subsidiary or an acquired or disposed business is significant. The amendments took effect January 1, 2021 and the Company did not elect to early adopt the provisions of the final rule prior to that date. This rule, as amended, did not impact the Company’s financial statement disclosures in fiscal 2021.

In March 2020, the FASB issued Accounting Standards Update (“ASU”) 2020-04, Reference Rate Reform: Facilitation of the Effects of Reference Rate Reform on Financial Reporting which provides optional guidance for a limited time to ease the potential accounting burden associated with the expected market transition away from the London Interbank Offered Rate (LIBOR) and other interbank offered rates to alternative reference rates. LIBOR is used to determine interest expense related to the Company’s Revolver, which matures in 2026. This update was effective starting March 12, 2020 and the Company may elect to apply the amendments prospectively through December 31, 2022. We are currently evaluating the effect that ASU 2020-04 will have on our consolidated financial statements and related disclosures.

In December 2019, the FASB issued ASU No. 2019-12 to simplify the accounting for income taxes by removing certain exceptions to the general principles and simplify areas such as franchise taxes, step-up in tax basis goodwill, separate entity financial statements and interim recognition of enacted tax laws or rate changes. The new standard will be effective for the Company in the first quarter fiscal year 2022. We are currently evaluating the effect that the new standard will have on the Company’s financial position, results of operations and related disclosures.

In June 2016, the FASB issued ASU No. 2016-13, "Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments," which was subsequently amended in November 2018 through ASU No. 2018-19, "Codification Improvements to Topic 326, Financial Instruments - Credit Losses." ASU No. 2016-13 will require entities to estimate lifetime expected credit losses for trade and other receivables along with other financial instruments which will result in earlier recognition of credit losses. Further, the new credit loss model will affect how entities in all industries estimate their allowance for losses for receivables that are current with respect to their payment terms. In November 2019, the FASB issued ASU No. 2019-10, which, among other things, deferred the application of the new guidance on credit losses for smaller reporting companies to fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. This guidance will be applied through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective (i.e., a modified-retrospective approach). Under the above-mentioned deferral, the Company expects to adopt ASU No. 2016-03, and the related ASU No. 2018-19 amendments, beginning as of April 1, 2023 and is in the process of assessing the impact, if any, that this new guidance is expected to have on the Company’s results of operations, financial condition and/or financial statement disclosures.

9

Consolidated Statements of Net Earnings

Seneca Foods Corporation and Subsidiaries

(In thousands of dollars, except per share amounts)

Years ended March 31,	2021			2020
Net sales	$	1,467,644		$	1,335,769
Costs and expenses:
Cost of products sold		1,235,459			1,193,881
Selling, general, and administrative expense		79,950			76,971
Other operating income, net		(29,014	)		(12,653	)
Plant restructuring charge		182			7,046
Total costs and expenses		1,286,577			1,265,245
Operating income		181,067			70,524
Loss from equity investment		11,453			93
Other loss (income)		3,473			(7,018	)
Interest expense, net of interest income of $42 and $25, respectively		6,125			11,834
Earnings From Continuing Operations Before Income Taxes		160,016			65,615
Income Taxes From Continuing Operations		33,916			14,427
Earnings From Continuing Operations		126,100			51,188
Earnings From Discontinued Operations (net of income taxes)		-			1,147
Net Earnings	$	126,100		$	52,335
Basic Earnings per Common Share:
Continuing Operations	$	13.82		$	5.50
Discontinued Operations	$	-		$	0.12
Net Basic Earnings per Common Share	$	13.82		$	5.62
Diluted Earnings per Common Share:
Continuing Operations	$	13.72		$	5.46
Discontinued Operations	$	-		$	0.12
Net Diluted Earnings per Common Share	$	13.72		$	5.58

See notes to consolidated financial statements. 

10

Consolidated Statements of Comprehensive Income (Loss)

Seneca Foods Corporation and Subsidiaries

(In thousands of dollars)

Years ended March 31,	2021		2020
Comprehensive income (loss):
Net earnings	$	126,100	$	52,335
Change in pension and postretirement benefits (net of income tax of ($19,528) and $20,312, respectively)		60,153		(60,935	)
Total	$	186,253	$	(8,600	)

See notes to consolidated financial statements. 

11

Consolidated Balance Sheets

Seneca Foods Corporation and Subsidiaries

(In thousands)

March 31,	2021			2020
Assets
Current Assets:
Cash and cash equivalents	$	59,837		$	10,702
Accounts receivable, less allowance for doubtful accounts of $339 and $1,598, respectively		92,221			109,802
Contracts receivable		911			7,610
Assets held for sale-discontinued operations		338			182
Inventories		343,144			411,631
Assets held for sale		8,656			-
Refundable income taxes		8,385			4,350
Other current assets		2,807			7,323
Total Current Assets		516,299			551,600
Deferred income tax asset, net		-			7,872
Noncurrent assets held for sale-discontinued operations		778			1,026
Other assets		8,033			26,042
Pension assets		62,851			-
Right-of-use assets operating, net		42,193			60,663
Right-of-use assets financing, net		30,611			33,617
Property, plant, and equipment:
Land		26,031			24,955
Buildings and improvements		188,332			184,945
Equipment		430,526			408,385
Total		644,889			618,285
Less accumulated depreciation and amortization		396,306			389,796
Net property, plant, and equipment		248,583			228,489
Total Assets	$	909,348		$	909,309
Liabilities and Stockholders’ Equity
Current Liabilities:
Accounts payable	$	74,089		$	71,194
Deferred revenue		4,287			7,758
Accrued vacation		11,660			11,876
Accrued payroll		15,366			11,864
Other accrued expenses		24,403			17,808
Current liabilities held for sale-discontinued operations		-			880
Current portion of long-term debt and lease obligations		28,325			28,274
Total Current Liabilities		158,130			149,654
Long-term debt, less current portion		94,085			217,081
Operating lease obligations, less current portion		27,769			42,760
Financing lease obligations, less current portion		19,232			24,366
Pension liabilities		-			75,742
Other liabilities		4,011			5,342
Deferred income tax liability, net		28,306			-
Total Liabilities		331,533			514,945
Commitments and contingencies
Stockholders’ Equity:
Preferred stock		663			681
Common stock		3,041			3,041
Additional paid-in capital		98,502			98,384
Treasury stock, at cost		(91,198	)		(88,319	)
Accumulated other comprehensive loss		(19,067	)		(79,220	)
Retained earnings		585,874			459,797
Total Stockholders’ Equity		577,815			394,364
Total Liabilities and Stockholders’ Equity	$	909,348		$	909,309

See notes to consolidated financial statements. 

12

Consolidated Statements of Cash Flows

Seneca Foods Corporation and Subsidiaries

(In thousands)

Years ended March 31,	2021			2020
Cash flows from operating activities:
Net earnings	$	126,100		$	52,335
Adjustments to reconcile net earnings to net cash provided by operations:
Depreciation and amortization		32,375			30,933
Deferred income tax expense		16,650			15,529
Gain on the sale of assets		(31,938	)		(13,086	)
Restructuring provision		182			5,626
Loss from equity investment		11,453			93
401(k) match stock contribution		1,479			94
Changes in operating assets and liabilities (net of acquisitions):
Accounts and contracts receivable		24,280			(33,290	)
Inventories		68,487			90,053
Other current assets		4,083			(4,332	)
Accounts payable, accrued expenses, and other liabilities		(65,936	)		(13,509	)
Income taxes		(4,035	)		(3,129	)
Net cash provided by operating activities		183,180			127,317
Cash flows from investing activities:
Additions to property, plant, and equipment		(71,431	)		(65,686	)
Proceeds from the sale of assets		73,688			22,529
Net cash provided by (used in) investing activities		2,257			(43,157	)
Cash flows from financing activities:
Proceeds from issuance of long-term debt		478,059			494,098
Payments of long-term debt		(597,055	)		(542,778	)
Payments on financing leases		(6,321	)		(6,437	)
Change in other assets		(6,604	)		(17,125	)
Purchase of treasury stock		(4,358	)		(12,673	)
Preferred stock dividends paid		(23	)		(23	)
Net cash used in financing activities		(136,302	)		(84,938	)
Net increase (decrease) in cash and cash equivalents		49,135			(778	)
Cash and cash equivalents, beginning of year		10,702			11,480
Cash and cash equivalents, end of year	$	59,837		$	10,702
Supplemental disclosures of cash flow information:
Cash paid during the year for:
Interest	$	5,094		$	10,836
Income taxes paid		22,692			573
Noncash transactions:
Investment in CraftAg. LLC via contribution of plant	$	-		$	7,975
Property, plant and equipment issued under finance and operating leases		3,749			10,843
Property, plant and equipment purchased on account		19			754

See notes to consolidated financial statements.

13

Consolidated Statements of Stockholders' Equity

Seneca Foods Corporation and Subsidiaries

(In thousands, except share amounts)

											Accumulated
						Additional					Other
	Preferred			Common		Paid-In		Treasury			Comprehensive			Retained
	Stock			Stock		Capital		Stock			Loss			Earnings
Balance March 31, 2019	$	707		$	3,039	$	98,260	$	(75,740	)	$	(18,285	)	$	409,504
Net earnings		-			-		-		-			-			52,335
Cash dividends paid on preferred stock		-			-		-		-			-			(23	)
Equity incentive program		-			-		100		-			-			-
Contribution of 401(k) match		-			-		-		94			-			-
Purchase of treasury stock		-			-		-		(12,673	)		-			-
Preferred stock conversion		(26	)		2		24		-			-			-
Operating lease impairment adjustment upon the adoption of ASU 2016-02 "Leases" (net of tax $673)															(2,019	)
Change in pension and postretirement benefits adjustment (net of tax $20,312)		-			-		-		-			(60,935	)		-
Balance March 31, 2020		681			3,041		98,384		(88,319	)		(79,220	)		459,797
Net earnings		-			-		-		-			-			126,100
Cash dividends paid on preferred stock		-			-		-		-			-			(23	)
Equity incentive program		-			-		100		-			-			-
Contribution of 401(k) match		-			-		-		1,479			-			-
Purchase of treasury stock		-			-		-		(4,358	)		-			-
Preferred stock conversion		(18	)		-		18		-			-			-
Change in pension and postretirement benefits adjustment (net of tax $19,528)		-			-		-		-			60,153			-
Balance March 31, 2021	$	663		$	3,041	$	98,502	$	(91,198	)	$	(19,067	)	$	585,874

	Preferred Stock								Common Stock
		6%		10%
	Cumulative Par		Cumulative Par				2003 Series
	Value $.25		Value $.025		Participating		Participating		Class A		Class B
	Callable at Par		Convertible		Convertible Par		Convertible Par		Common Stock		Common Stock
	Voting		Voting		Value $.025		Value $.025		Par Value $.25		Par Value $.25
Shares authorized and designated:
March 31, 2021		200,000		1,400,000		33,855		500		20,000,000		10,000,000
Shares outstanding:
March 31, 2020		200,000		807,240		35,355		500		7,383,993		1,733,902
March 31, 2021		200,000		807,240		33,855		500		7,353,545		1,709,638
Stock amount	$	50	$	202	$	403	$	8	$	2,545	$	496

See notes to consolidated financial statements.

14

Notes to Consolidated Financial Statements

Seneca Foods Corporation and Subsidiaries

1. Summary of Significant Accounting Policies

Nature of Operations — Seneca Foods Corporation (the “Parent Company”) and subsidiaries (the “Company”) currently has 26 plants and 25 warehouses in eight states in support of its operations. The Company markets private label and branded packaged foods to retailers and institutional food distributors.

Principles of Consolidation — The consolidated financial statements include the accounts for the Parent Company and all of its wholly-owned subsidiaries after elimination of intercompany transactions, profits, and balances.

Revenue Recognition — Revenue recognition is completed primarily at a point in time basis when product control is transferred to the customer.  In general, control transfers to the customer when the product is shipped or delivered to the customer based upon applicable shipping terms, as the customer can direct the use and obtain substantially all of the remaining benefits from the asset at this point in time.  See Note 4, Revenue Recognition, for further discussion of the policy.

Trade promotions are an important component of the sales and marketing of the Company’s branded products, and are critical to the support of the business. Trade promotion costs, which are recorded as a reduction of sales, include amounts paid to retailers for shelf space, to obtain favorable display positions and to offer temporary price reductions for the sale of our products to consumers. Accruals for trade promotions are recorded primarily at the time of sale to the retailer based on expected levels of performance. Settlement of these liabilities typically occurs in subsequent periods primarily through an authorized process for deductions taken by a retailer from amounts otherwise due to the Company. As a result, the ultimate cost of a trade promotion program is dependent on the relative success of the events and the actions and level of deductions taken by retailers. Final determination of the permissible deductions may take extended periods of time.

Concentration of Credit Risk — Financial instruments that potentially subject the Company to credit risk consist of trade receivables and interest-bearing investments. Wholesale and retail food distributors comprise a significant portion of the trade receivables; collateral is generally not required. A relatively limited number of customers account for a large percentage of the Company’s total net sales. The top ten customers represented approximately 50%, and 49% of net sales for 2021 and 2020, respectively. The Company closely monitors the credit risk associated with its customers. The Company places substantially all of its interest-bearing investments with financial institutions and monitors credit exposure. Cash and short-term investments in certain accounts exceed the federal insured limit; however, the Company has not experienced any losses in such accounts.

Cash Equivalents — The Company considers all highly liquid instruments purchased with an original maturity of three months or less as cash equivalents. As of March 31, 2021, the Company had $47.4 million of cash and cash equivalents invested in a money market fund that invests in high-quality, short-term obligations that present minimal credit risk including U.S. government securities, demand notes of U.S. and foreign corporations, certificates of deposit and time deposits, and asset backed securities. There were no such investments as of March 31, 2020.

Fair Value of Financial Instruments — The carrying values of cash and cash equivalents (Level 1), accounts receivable, short-term debt (Level 2) and accounts payable approximate fair value because of the immediate or short-term maturity of these financial instruments. See Note 11, Fair Value of Financial Instruments, for a discussion of the fair value of long-term debt.

The three-tier value hierarchy is utilized to prioritize the inputs used in measuring fair value. The hierarchy gives the highest priority to quoted prices in active markets (Level 1) and the lowest priority to unobserved inputs (Level 3). The three levels are defined as follows:

● Level 1- Quoted prices for identical instruments in active markets.

● Level 2- Quoted prices for similar instruments; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs or significant value-drivers are observable.

● Level 3- Model-derived valuations in which one or more inputs or value-drivers are both significant to the fair value measurement and unobservable.

Cash and cash equivalents as of March 31, 2021 include an investment in a money market fund, which is classified within Level 1 of the fair value hierarchy because it has readily-available market prices in active markets that are publicly accessible at the measurement date.

15

 

Notes to Consolidated Financial Statements

Deferred Financing Costs — Deferred financing costs incurred in obtaining debt are amortized on a straight-line basis over the term of the debt, which is not materially different than using the effective interest rate method. As of March 31, 2021 there were $0.9 million of unamortized financing cost included in other current assets and $0.1 million of unamortized financing costs included as a contra to long-term debt and current portion of long-term debt on the Consolidated Balance Sheets.

Inventories — Substantially all inventories are stated at the lower of cost; determined under the last-in, first-out (“LIFO”) method; or market.

Income Taxes — The provision for income taxes includes federal and state income taxes currently payable and those deferred because of temporary differences between the financial statement and tax basis of assets and liabilities and tax credit carryforwards. The Company uses the flow-through method to account for its investment tax credits.

The Company evaluates the likelihood of realization of its net deferred income tax assets by assessing its valuation allowance and by adjusting the amount of such allowance, if necessary. The factors used to assess the likelihood of realization are the Company’s forecast of future taxable income, the projected reversal of temporary differences and available tax planning strategies that could be implemented to realize the net deferred income tax assets.

Current rules on the accounting for uncertainty on income taxes prescribe a minimum recognition threshold for a tax position taken or expected to be taken in a tax return that is required to be met before being recognized in the financial statements. Those rules also provide guidance on derecognition, measurement, classification, interest and penalties, accounting in interim periods, disclosure and transition. The Company recognizes interest and penalties accrued on unrecognized tax benefits as well as interest received from favorable settlements within income tax expense.

Assets Held for Sale—The Company classifies property and equipment as held for sale when certain criteria are met. At such time, the properties, including significant assets that are expected to be transferred as part of a sale transaction, are presented separately on the consolidated balance sheet at the lower of carrying value or estimated fair value less costs to sell and depreciation is no longer recognized. Assets classified as held for sale included buildings, land and equipment.

Discontinued Operations — Discontinued operations comprise those activities that have been disposed of during the period or that have been classified as held for sale at the end of the period, and represent a separate major line of business or geographical area that can be clearly distinguished for operational and financial reporting purposes. In fiscal 2019, the Company sold its Modesto fruit operations and began reporting the results of operations, cash flows and the balance sheet amounts pertaining to this as a component of discontinued operations in the consolidated financial statements.

Unless otherwise indicated, information in the notes to the consolidated financial statements relates to continuing operations.

Advertising Costs — Advertising costs are expensed as incurred. Advertising costs charged to continuing operations were $1.8 million and $2.2 million in 2021 and 2020, respectively.

Accounts Receivable and Doubtful Accounts — Accounts receivable is stated at invoice value, which is net of any off invoice promotions.  A provision for doubtful accounts is recorded based upon an assessment of credit risk within the accounts receivable portfolio, experience of delinquencies (accounts over 15 days past due) and charge-offs (accounts removed from accounts receivable for expectation of non-payment), and current market conditions. Management believes these provisions are adequate based upon the relevant information presently available.

Earnings per Common Share — The Company has three series of convertible preferred stock, which are deemed to be participating securities that are entitled to participate in any dividend on Class A common stock as if the preferred stock had been converted into common stock immediately prior to the record date for such dividend. Basic earnings per share for common stock is calculated using the “two-class” method by dividing the earnings attributable to common stockholders by the weighted average of common shares outstanding during the period. Restricted stock is included in all earnings per share calculations.

16

 

Notes to Consolidated Financial Statements

Diluted earnings per share is calculated by dividing earnings attributable to common stockholders by the sum of the weighted average common shares outstanding plus the dilutive effect of convertible preferred stock using the “if-converted” method, which treats the contingently-issuable shares of convertible preferred stock as common stock.

Years ended March 31,	2021		2020
Continuing Operations	(In thousands, except per share amounts)
Basic
Continuing operations earnings	$	126,100	$	51,188
Deduct preferred stock dividends		23		23
Undistributed earnings		126,077		51,165
Earnings attributable to participating preferred shareholders		493		206
Earnings attributable to common shareholders	$	125,584	$	50,959
Weighted average common shares outstanding		9,088		9,264
Basic earnings from continuing operations per common share	$	13.82	$	5.50
Diluted
Earnings attributable to common shareholders	$	125,584	$	50,959
Add dividends on convertible preferred stock		20		20
Earnings attributable to common stock on a diluted basis	$	125,604	$	50,979
Weighted average common shares outstanding-basic		9,088		9,264
Additional shares to be issued related to the equity compensation plan		3		2
Additional shares to be issued under full conversion of preferred stock		67		67
Total shares for diluted		9,158		9,333
Diluted earnings from continuing operations per share	$	13.72	$	5.46

Years ended March 31,	2021		2020
Discontinued Operations	(In thousands, except per share amounts)
Basic
Discontinued operations earnings	$	-	$	1,147
Deduct preferred stock dividends		-		23
Undistributed earnings		-		1,124
Earnings attributable to participating preferred shareholders		-		5
Earnings attributable to common shareholders	$	-	$	1,119
Weighted average common shares outstanding				9,264
Basic earnings from discontinued operations per common share	$	-	$	0.12
Diluted
Earnings attributable to common shareholders	$	-	$	1,119
Add dividends on convertible preferred stock		-		20
Earnings attributable to common stock on a diluted basis	$	-	$	1,139
Weighted average common shares outstanding-basic		-		9,264
Additional shares to be issued related to the equity compensation plan		-		2
Additional shares to be issued under full conversion of preferred stock		-		67
Total shares for diluted		-		9,333
Diluted earnings from discontinued operations per share	$	-	$	0.12

Depreciation and Valuation — Property, plant, and equipment are stated at cost. Interest incurred during the construction of major projects is capitalized. For financial reporting, the Company provides for depreciation on the straight-line method at rates based upon the estimated useful lives of the various assets. Depreciation was $27.1 million and $26.1 million, in 2021, and 2020, respectively. The estimated useful lives are as follows: buildings and improvements — 30 years; machinery and equipment — 10-15 years; computer software — 3-5 years; vehicles — 3-7 years; and land improvements — 10-20 years.

17

 

Notes to Consolidated Financial Statements

The Company assesses its long-lived assets for impairment whenever there is an indicator of impairment. Impairment losses are evaluated if the estimated undiscounted cash flows from using the assets are less than carrying value. A loss is recognized when the carrying value of an asset exceeds its fair value.

Additionally, the Company’s assesses the potential for an other-than-temporary impairment of its equity method investment when impairment indicators are identified. The Company considers all available information, including the recoverability of the investment, the earnings and near-term prospects of the investment, factors related to the industry, amongst others relevant information. If an investment is considered to be impaired and the decline in value is other than temporary, an impairment charge is recorded. During 2021, the Company recorded an other-than-temporary impairment charge of $9.7 million to its equity method investment representing the difference between the carrying value of the Company’s investment and its proportionate share of the investment’s fair value. This charge was included in “Loss from equity investment” in the Company’s Consolidated Statements of Net Earnings. There were no significant impairment losses in 2020.

Use of Estimates in the Preparation of Financial Statements — The preparation of financial statements in conformity with accounting principles generally accepted in the United States ("GAAP") requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements, as well as the related revenues and expenses during the reporting period. Actual amounts could differ from those estimates.

Recently Issued Accounting Standards — In August 2018, the FASB issued ASU No. 2018-14, Compensation—Retirement Benefits—Defined Benefit Plans—General (Topic 715-20): Disclosure Framework—Changes to the Disclosure Requirements for Defined Benefit Plans, which modifies the disclosure requirements for defined benefit pension plans and other postretirement plans. ASU 2018-14 became effective for annual periods ending after December 15, 2020. The Company adopted the standard for its fiscal year ended March 31, 2021 and the adoption of ASU 2018-14 did not have an impact on the consolidated financial statements as this ASU only modified disclosure requirements. See Note 10 “Retirement Plants” and related disclosures.

In May 2020, the SEC issued a final rule that amends the financial statement requirements for acquisitions and dispositions of businesses. The amendments primarily relate to disclosures required by Rule 3-05 and Article 11 of Regulation S-X. Among other things, the final rule modifies the tests provided in Rule 1-02(w) of Regulation S-X used to determine whether a subsidiary or an acquired or disposed business is significant. The amendments took effect January 1, 2021 and the Company elected not to early adopt the provisions of the final rule prior to that date. Therefore the final rule became effective January 1, 2021 and did not impact the Company’s financial statement disclosures in fiscal 2021.

In March 2020, the FASB issued Accounting Standards Update (“ASU”) 2020-04, Reference Rate Reform: Facilitation of the Effects of Reference Rate Reform on Financial Reporting which provides optional guidance for a limited time to ease the potential accounting burden associated with the expected market transition away from the London Interbank Offered Rate (LIBOR) and other interbank offered rates to alternative reference rates. LIBOR is used to determine interest expense related to the Company’s Revolver, which matures in 2026. This update was effective starting March 12, 2020 and the Company may elect to apply the amendments prospectively through December 31, 2022. We are currently evaluating the effect that ASU 2020-04 will have on our consolidated financial statements and related disclosures.

In December 2019, the FASB issued ASU No. 2019-12 to simplify the accounting for income taxes by removing certain exceptions to the general principles and simplify areas such as franchise taxes, step-up in tax basis goodwill, separate entity financial statements and interim recognition of enacted tax laws or rate changes. The new standard will be effective for the Company in the first quarter fiscal year 2022. We are currently evaluating the effect that the new standard will have on the Company’s financial position, results of operations and related disclosures.

In June 2016, the FASB issued ASU No. 2016-13, "Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments," which was subsequently amended in November 2018 through ASU No. 2018-19, "Codification Improvements to Topic 326, Financial Instruments - Credit Losses." ASU No. 2016-13 will require entities to estimate lifetime expected credit losses for trade and other receivables along with other financial instruments which will result in earlier recognition of credit losses. Further, the new credit loss model will affect how entities in all industries estimate their allowance for losses for receivables that are current with respect to their payment terms. In November 2019, the FASB issued ASU No. 2019-10, which, among other things, deferred the application of the new guidance on credit losses for smaller reporting companies to fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. This guidance will be applied through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective (i.e., a modified-retrospective approach). Under the above-mentioned deferral, the Company expects to adopt ASU No. 2016-03, and the related ASU No. 2018-19 amendments, beginning as of April 1, 2023 and is in the process of assessing the impact, if any, that this new guidance is expected to have on the Company’s results of operations, financial condition and/or financial statement disclosures.

18

 

Notes to Consolidated Financial Statements

Reclassifications — Certain previously reported amounts have been reclassified to conform to the current period classification.

2. Assets Held For Sale

As of March 31, 2021, the Company has certain non-operating units in the Midwest and equipment in the Northwest that have met the criteria to be classified as held for sale, which requires the Company to present the related assets and liabilities as separate line items in our Condensed Consolidated Balance Sheet. The Company recorded a charge of $0.6 million in fiscal 2021 in order to properly reflect the carrying value of the assets held for sale as equal to the lower of carrying value or fair value less costs to sell. The following table presents information related to the major classes of assets and liabilities that were held for sale in our Condensed Consolidated Balance sheets (in thousands):

	March 31, 2021
Property, Plant and Equipment (net)	$	8,656
Current Assets Held For Sale	$	8,656

3. Discontinued Operations

On July 13, 2018, the Company executed a nonbinding letter of intent with a perspective buyer of the Modesto facility. On October 9, 2018, the Company closed on the sale of the facility to this outside buyer with net proceeds of $63,326,000. Based on its magnitude of revenue to the Company (approximately 15%) and because the Company was exiting the production of peaches, this sale represented a significant strategic shift that has a material effect on the Company’s operations and financial results. Accordingly, the Company has applied discontinued operations treatment for this sale as required by Accounting Standards Codification 210-05—Discontinued Operations. This business we are exiting is part of the Fruit and Vegetable segment.

The following table presents information related to the major classes of assets and liabilities of Modesto that are classified as Held For Sale-Discontinued Operations in the Company's Consolidated Condensed balance sheets (in thousands):

	March 31, 2021		March 31, 2020
Other Current Assets	$	338	$	182
Current Assets Held For Sale-Discontinued Operations	$	338	$	182
Other Assets	$	778	$	1,026
Noncurrent Assets Held For Sale-Discontinued Operations	$	778	$	1,026
Accounts Payable and Accrued Expenses	$	-	$	880
Current Liabilities Held For Sale-Discontinued Operations	$	-	$	880

19

 

Notes to Consolidated Financial Statements

The operating results of the discontinued operations that are reflected in the Unaudited Condensed Consolidated Statements of Net Earnings from discontinued operations are as follows (in thousands):

	Twelve Months Ended
	March 31, 2021		March 31, 2020
Net Sales	$	-	$	-
Costs and Expenses:
Cost of Product Sold		-		57
Selling, General and Administrative		-		-
Plant Restructuring Charge (a)		-		(1,150	)
Interest Expense		-		-
Total cost and expenses		-		(1,093	)
Earnings From Discontinued Operations Before Income Taxes		-		1,093
Gain on the Sale of Assets Before Income Taxes		-		(430	)
Income Tax Expense		-		376
Net Earnings From Discontinued Operations, Net of Tax	$	-	$	1,147

(a) Includes $902,000 credit for pension termination in fiscal 2020.

4. Revenue Recognition

The Company applies the provisions of ASC 606-10, Revenue from Contracts with Customers, and recognizes revenue under the core principle to depict the transfer of products to customers in an amount reflecting the consideration the Company expects to receive. The Company conducts its business almost entirely in food packaging, which contributed approximately 98% of the Company's fiscal year 2021 net sales.

Nature of products

The Company manufactures and sells the following:

• private label products to retailers, such as supermarkets, mass merchandisers, and specialty retailers, for resale under the retailers’ own or controlled labels;

• private label and branded products to the foodservice industry, including foodservice distributors and national restaurant operators;

• branded products under our own proprietary brands, primarily on a national basis to retailers;

• branded products under co-pack agreements to other major branded companies for their distribution; and

• products to our industrial customer base for repackaging in portion control packages and for use as ingredients by other food manufacturers.

20

 

Notes to Consolidated Financial Statements

Disaggregation of revenue

In the following table, segment revenue is disaggregated by product category groups (in thousands):

	Year Ended
	March 31, 2021		March 31 ,2020
Canned Vegetables	$	1,172,635	$	986,080
Frozen		102,339		119,044
Fruit Products		88,289		97,393
Prepared Foods		71,866		105,044
Chip Products		10,999		11,475
Other		21,516		16,733
Total	$	1,467,644	$	1,335,769

When Performance Obligations Are Satisfied

A performance obligation is a promise in a contract to transfer a distinct good or service to the customer and is the unit of account for revenue recognition.  A contract’s transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied.  The Company’s primary performance obligation is the production of food products and secondarily case and labeling services and storage services for certain bill and hold sales.

Revenue recognition is completed primarily at a point in time basis when product control is transferred to the customer.  In general, control transfers to the customer when the product is shipped or delivered to the customer based upon applicable shipping terms, as the customer can direct the use and obtain substantially all of the remaining benefits from the asset at this point in time.  

Customer contracts generally do not include more than one performance obligation.  When a contract does contain more than one performance obligation, we allocate the contract’s transaction price to each performance obligation based on its relative standalone selling price.  The standalone selling price for each distinct good is generally determined by directly observable data.  

The performance obligations in our contracts are generally satisfied within one year. As such, we have not disclosed the transaction price allocated to remaining performance obligations for labeling and storage as of March 31, 2021 which is included in deferred revenue on the consolidated balance sheet.

Significant Payment Terms

Our customer contracts identify the product, quantity, price, payment and final delivery terms.  Payment terms usually include early pay discounts.  We grant payment terms consistent with industry standards. Although some payment terms may be more extended, no terms beyond one year are granted at contract inception.  As a result, we do not adjust the promised amount of consideration for the effects of a significant financing component because the period between our transfer of a promised good or service to a customer and the customer’s payment for that good or service will be generally 30 days or less.  

Shipping

All shipping and handling costs associated with outbound freight are accounted for as fulfillment costs and are included in the cost of sales; this includes shipping and handling costs after control over a product has transferred to a customer.

Variable Consideration

In addition to fixed contract consideration, some contracts include some form of variable consideration.  Trade promotions are an important component of the sales and marketing of the Company’s branded products, and are critical to the support of the business. Trade promotion costs, which are recorded as a reduction of sales, include amounts paid to retailers for shelf space, to obtain favorable display positions and to offer temporary price reductions for the sale of our products to consumers. Accruals for trade promotions are recorded primarily at the time of sale to the retailer based on expected levels of performance. Settlement of these liabilities typically occurs in subsequent periods primarily through an authorized process for deductions taken by a retailer from amounts otherwise due to the Company. As a result, the ultimate cost of a trade promotion program is dependent on the relative success of the events and the actions and level of deductions taken by retailers. Final determination of the permissible deductions may take extended periods of time.

21

 

Notes to Consolidated Financial Statements

Contract balances

The contract asset balances are $0.9 million and $7.6 million as of March 31, 2021 and 2020, respectively. The contract liability balance is immaterial.  The Company does not have significant deferred revenue or unbilled receivable balances because of transactions with customers.  The Company does have deferred revenue for prepaid case and labeling and storage services which have been collected from bill and hold sales.

Contract Costs

We have identified certain incremental costs to obtain a contract, primarily sales commissions, requiring capitalization under the new standard.  The Company continues to expense these costs as incurred because the amortization period for the costs would have been one year or less.  The Company does not incur significant fulfillment costs requiring capitalization.

5. Revolving Credit Facility

On March 24, 2021, the Company entered into a Fourth Amended and Restated Loan and Security Agreement that provides for a senior revolving credit facility of up to $400.0 million that is seasonally adjusted (the “Revolver”). Maximum borrowings under the Revolver total $300.0 million from April through July and $400.0 million from August through March. The Revolver balance as of March 31, 2021 was $1.0 million and is included in Long-Term Debt in the accompanying Consolidated Balance Sheet due to the Revolver’s March 24, 2026 maturity. In order to maintain availability of funds under the facility, the Company pays a commitment fee on the unused portion of the Revolver. The Revolver is secured by substantially all of the Company’s accounts receivable and inventories and contains borrowing base requirements as well as a financial covenant, if certain circumstances apply. The Company utilizes its Revolver for general corporate purposes, including seasonal working capital needs, to pay debt principal and interest obligations, and to fund capital expenditures and acquisitions. Seasonal working capital needs are affected by the growing cycles of the vegetables the Company packages. The majority of vegetable inventories are produced during the months of June through November and are then sold over the following year. Payment terms for vegetable produce are generally three months but can vary from a few days to seven months. Accordingly, the Company’s need to draw on the Revolver may fluctuate significantly throughout the year.

6. Long-Term Debt

	2021		2020
	(In thousands)
Revolving credit facility, 1.38% and 2.59%, due through 2026	$	1,000	$	106,924
Farm Credit term loan, 3.30% and 4.54%, due 2026		96,869		99,941
Bluegrass tax exempt bonds, 0% and 3.01%		-		10,000
Economic development note, 2.00%, due through 2022		500		500
Other		216		216
Total		98,585		217,581
Less current portion		4,500		500
Long-term debt	$	94,085	$	217,081

See Note 5, Revolving Credit Facility, for discussion of the Revolver.

The Company’s debt agreements, including the Revolver and term loan, contain customary affirmative and negative covenants that restrict, with specified exceptions, the Company’s ability to incur additional indebtedness, incur liens, pay dividends on the Company’s capital stock, make other restricted payments, including investments, transfer all or substantially all of the Company’s assets, enter into consolidations or mergers, and enter into transactions with affiliates. The Company’s debt agreements also require the Company to meet certain financial covenants including a minimum EBITDA and minimum tangible net worth. The Revolver contains borrowing base requirements related to accounts receivable and inventories and also requires the Company to meet a financial covenant related to a minimum fixed charge coverage ratio if (a) an event of default has occurred or (b) availability on the Revolver is less than the greater of (i) 10% of the commitments then in effect and (ii) $25,000,000. The most restrictive financial covenant in the debt agreements is the minimum EBITDA within the Farm Credit term loan which for fiscal year end 2021 will be greater than $50 million. The Company computes its financial covenants as if the Company were on the FIFO method of inventory accounting. The Company has met all such financial covenants as of March 31, 2021.

22

 

Notes to Consolidated Financial Statements

The Company's debt agreements limit the payment of dividends and other distributions. There is an annual total distribution limitation of $50,000, less aggregate annual dividend payments totaling $23,000 that the Company presently pays on two outstanding classes of preferred stock.

On May 28, 2020 the Company entered into an Amended and Restated Loan and Guaranty Agreement with Farm Credit East, ACA that provides for a $100.0 million unsecured term loan. The amended and restated agreement with Farm Credit East has a maturity date of June 1, 2025 and converted the term loan to a fixed interest rate rather than a variable interest rate in addition to requiring quarterly principal payments of $1.0 million, which commenced during fiscal 2021. The Company incurred financing costs totaling $0.2 million which have been classified as a discount to the debt. This agreement contains certain covenants, including maintaining a minimum EBITDA and minimum tangible net worth.

The carrying value of assets pledged for secured debt, including the Revolver, is $508.2 million.

Debt repayment requirements for the next five fiscal years are (in thousands):

Years ending March 31:
2022	$	4,500
2023		4,000
2024		4,000
2025		4,000
2026		81,869
Thereafter		216
Total	$	98,585

7. Leases

The Company determines if an arrangement is a lease at inception of the agreement. Operating leases are included in right-of-use operating assets, current portion of long-term debt and lease obligations, and noncurrent operating lease obligations in the Company’s Consolidated Balance Sheets. Lease assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Lease assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. If the lease does not provide an implicit rate, the Company uses an incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The right-of-use operating lease assets also include in its calculation any prepaid lease payments made and excludes any lease incentives received from the arrangement. The Company’s lease terms may include options to extend or terminate the lease, and the impact of these options are included in the lease liability and lease asset calculations when the exercise of the option is at the Company’s sole discretion and it is reasonably certain that the Company will exercise that option. The Company will not separate lease and nonlease components for its leases when it is impractical to separate the two, such as leases with variable payment arrangements. Leases with an initial term of 12 months or less are not recorded on the balance sheet.

The Company has operating leases for land, machinery and equipment. The Company also has finance leases for machinery and equipment. The commencement date used for the calculation of the lease obligation is the latter of April 1, 2019 or the lease start date. Certain of the leases have options to extend the life of the lease, which are included in the liability calculation when the option is at the sole discretion of the Company and it is reasonably certain that the Company will exercise the option. In addition, the Company has certain leases that have variable payments based solely on output or usage of the leased asset. These variable operating lease assets are excluded from the Company’s balance sheet presentation and expensed as incurred. Leases with an initial term of 12 months or less are not material.

Upon adoption of ASU 2016-02, the Company determined its right-of-use assets related to the operating leases for its plant equipment in Sunnyside, Washington were partially impaired and therefore were reduced with a corresponding charge to retained earnings of $2,019,000 (which is net of tax). The estimated lives of these assets were shortened to align with the closure of the facility.

23

 

Notes to Consolidated Financial Statements

Lease expense for lease payments is recognized on a straight-line basis over the lease term. The components of lease expense were as follows (In thousands):

	Year Ended		Year Ended
	March 31, 2021		March 31, 2020
Lease cost:
Amortization of right of use asset	$	4,746	$	4,335
Interest on lease liabilities		1,102		1,353
Finance lease cost		5,848		5,688
Operating lease cost		23,736		30,190
Total lease cost	$	29,584	$	35,878
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from finance leases	$	1,102	$	1,353
Operating cash flows from operating leases		23,864		29,845
Financing cash flows from finance leases		6,321		6,437
Total	$	31,287	$	37,635
Right-of-use assets obtained in exchange for new finance lease liabilities	$	1,740	$	4,424
Right-of-use assets obtained in exchange for new operating lease liabilities	$	2,009	$	6,419
Weighted-average lease term (years):
Financing leases		4.5		5.3
Operating leases		3.5		3.8
Weighted-average discount rate (percentage):
Financing leases		4.1		4.1
Operating leases		4.4		4.5

24

 

Notes to Consolidated Financial Statements

Undiscounted future lease payments under non-cancelable operating leases and financial leases, along with a reconciliation of undiscounted cash flows to operating and financing lease liabilities, respectively, as of March 31, 2021 were as follows (in thousands):

Years ending March 31:	Operating		Financing
2022	$	18,606	$	7,665
2023		14,042		7,665
2024		7,118		6,096
2025		3,572		2,713
2026		1,729		1,625
2027-2032		3,151		2,786
Total minimum payment required	$	48,218	$	28,550
Less interest		3,402		2,540
Present value of minimum lease payments		44,816		26,010
Amount due within one year		17,047		6,778
Long-term lease obligation	$	27,769	$	19,232

Undiscounted future lease payments under non-cancelable operating leases and financial leases, along with a reconciliation of undiscounted cash flows to operating and financing lease liabilities, respectively, as of March 31, 2020 were as follows (in thousands):

Years ending March 31:	Operating		Financing
2021	$	23,896	$	7,313
2022		18,820		7,313
2023		13,022		7,313
2024		6,510		5,786
2025		3,023		2,395
2026-2031		4,597		3,995
Total minimum payment required	$	69,868	$	34,115
Less interest		5,559		3,524
Present value of minimum lease payments		64,309		30,591
Amount due within one year		21,549		6,225
Long-term lease obligation	$	42,760	$	24,366

25

 

Notes to Consolidated Financial Statements

8. Income Taxes

The Company files a consolidated federal and various state income tax returns. The provision for income taxes is as follows (in thousands):

	2021		2020
	(In thousands)
Current:
Federal	$	13,121	$	(1,912	)
State		4,145		1,187
Total		17,266		(725	)
Deferred:
Federal	$	13,486	$	14,251
State		3,164		1,278
Total		16,650		15,529
Total income taxes (1)	$	33,916	$	14,804

(1) Income tax expense (benefit) included in the financial statements is comprised of $14.4 million from continuing operations and $0.4 million from discontinued operations in 2020. There was no income tax effect in 2021 as a result of discontinued operations.

A reconciliation for continuing operations of the expected U.S. statutory rate to the effective rate follows:

	2021			2020
Computed (expected tax rate)		21.0	%		21.0	%
State income taxes (net of federal tax benefit)		3.1			2.8
Federal credits		(0.3	)		(0.8	)
Addition/(reduction) to uncertain tax positions		(0.1	)		0.3
Other permanent differences not deductible		-			0.2
Change in valuation allowance		0.2			0.7
Tax law change		-			(2.8	)
Federal NOL carryback rate difference		(2.8	)		-
Other		0.1			0.6
Effective income tax rate		21.2	%		22.0	%

The effective tax rate was 21.2% and 22.0% in 2021 and 2020, respectively. On March 27, 2020, The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) was enacted. The CARES Act, among other things, allows NOLs incurred in taxable years beginning after December 31, 2017 and before January 01, 2021 to be carried back to each of the five preceding taxable years to generate a refund of previously paid income taxes. The Company was able to carryback the NOL generated in the 2019 tax year at a 21% corporate tax rate to the 2015 tax year at a 35% corporate tax rate. The tax rate difference realized for the NOL carryback decreased the Company’s effective tax rate by 2.8% in 2021 as compared to the prior year. The 2020 overall effective tax rate included a 2.8% rate benefit that was realized during 2020 as a result of tax law changes. This rate benefit due to a tax law change did not impact 2021. The NOL carrybacks resulted in a benefit of $4.5 million and $1.7 million in 2021 and 2020, respectively.

26

 

Notes to Consolidated Financial Statements

The following is a summary of the significant components of the Company's deferred income tax assets and liabilities as of March 31:

	2021			2020
	(In thousands)
Deferred income tax assets:
Future tax credits	$	5,884		$	5,581
Inventory valuation		2,204			163
Restructuring reserve		-			220
Employee benefits		2,063			2,219
Insurance		685			616
Other comprehensive loss		6,511			26,562
Interest		4			24
Prepaid revenue		463			565
Other		815			186
Equity investment basis difference		1,589			-
Net operating loss and other tax attribute carryovers		85			2,233
Total assets		20,303			38,369
Deferred income tax liabilities:
Property basis and depreciation difference		17,975			12,664
Intangibles		33			208
Equity investment basis difference		-			1,239
Right of use assets		4,371			4,373
Pension		21,556			7,540
Total liabilities		43,935			26,024
Valuation allowance - non-current		4,674			4,473
Net deferred income tax (liability)/asset	$	(28,306	)	$	7,872

Net non-current deferred income tax liabilities of $28.3 million as of March 31, 2021 and net non-current deferred income tax assets of $7.9 million as of March 31, 2020 are recognized in the Consolidated Balance Sheets.

The Company has State tax credit carryforwards amounting to $1.5 million (California, net of Federal impact), $2.1 million (New York, net of Federal impact), and $2.3 million (Wisconsin, net of Federal impact), which are available to reduce future taxes payable in each respective state through 2036 (Wisconsin), through 2036 (New York), and through 2028 (California). The Company has performed the required assessment regarding the realization of deferred tax assets and at March 31, 2021, the Company has recorded a valuation allowance amounting to $4.7 million, which relates primarily to tax credit carryforwards which management has concluded it is more likely than not they will not be realized in the ordinary course of operations. Although realization is not assured, management has concluded that it is more likely than not that the deferred tax assets for which a valuation allowance was determined to be unnecessary will be realized in the ordinary course of operations. The amount of net deferred tax assets considered realizable, however, could be reduced if actual future income or income taxes rates are lower than estimated or if there are differences in the timing or amount of future reversals of existing taxable or deductible temporary differences.

27

 

Notes to Consolidated Financial Statements

Current rules on the accounting for uncertainty on income taxes prescribe a minimum recognition threshold for a tax position taken or expected to be taken in a tax return that is required to be met before being recognized in the financial statements. Those rules also provide guidance on derecognition, measurement, classification, interest and penalties, accounting in interim periods, disclosure and transition. The Company classifies the liability for uncertain tax positions in other accrued expenses or other long-term liabilities depending on their expected settlement. The change in the liability for the years ended March 31, 2021 and 2020 consists of the following:

	2021			2020
	(In thousands)
Beginning balance	$	2,065		$	396
Tax positions related to current year:
Additions		279			1,123
Tax positions related to prior years:
Additions		34			569
Reductions		(1,626	)		(16	)
Lapses in statues of limitations		(376	)		(7	)
Balance as of March 31,	$	376		$	2,065

As of March 31, 2021 and 2020 unrecognized tax benefits include $0.0 million and $1.6 million of tax positions that are highly certain but for which there is uncertainty about the timing. Due to the new regulations issued in 2021 the position is no longer uncertain and the 2021 decrease is the reversal of the tax liability related to the UTB created in prior years. Because of the impact of deferred tax accounting, other than interest and penalties, the disallowance of these positions would not impact the annual effective tax rate but would accelerate the payment of cash to the tax authority to an earlier period.

The Company recognizes interest and penalties accrued on unrecognized tax benefits as well as interest received from favorable settlements within income tax expense. During the years ended March 31, 2021 and 2020, the Company recognized approximately $0.2 million decrease and $0.2 million increase, respectively, in interest and penalties. As of March 31, 2021 and 2020, the Company had approximately $0.0 million and $0.2 million of interest and penalties accrued, respectively, associated with unrecognized tax benefits.

Although management believes that an adequate position has been made for uncertain tax positions, there is the possibility that the ultimate resolution could have an adverse effect on the earnings of the Company. Conversely, if resolved favorably in the future, the related provisions would be reduced, thus having a positive impact on earnings. During 2021 the statute of limitations lapsed on one uncertain tax position. The lapse results in the position no longer being uncertain. As a result of the statute of limitations lapse and in accordance with its accounting policies, the Company recorded a decrease to the liability and a decrease to tax expense of $0.4 million.

The federal income tax returns for years after March 31, 2015 are open because we claimed a refund on the 3/31/16 taxable income. The tax year ending March 31, 2017 is currently under audit with the IRS.

9. Stockholders’ Equity

Preferred Stock — The Company has authorized three classes of preferred stock consisting of 200,000 shares of Six Percent (6%) Voting Cumulative Preferred Stock, par value $0.25 (“6% Preferred”); 30,000 shares of Preferred Stock Without Par Value to be issued in series by the Board of Directors, none of which are currently designated or outstanding; and 8,200,000 shares of Preferred Stock with $.025 par value, Class A, to be issued in series by the Board of Directors (“Class A Preferred”). The Board of Directors has designated four series of Class A Preferred including 10% Cumulative Convertible Voting Preferred Stock—Series A (“Series A Preferred”); 10% Cumulative Convertible Voting Preferred Stock—Series B (“Series B Preferred”); Convertible Participating Preferred Stock; and Convertible Participating Preferred Stock, Series 2003.

The Convertible Participating Preferred Stock and Convertible Participating Preferred Stock, Series 2003 are convertible at the holders’ option on a one-for-one basis into shares of Class A Common Stock, subject to antidilution adjustments. These series of preferred stock have the right to receive dividends and distributions at a rate equal to the amount of any dividends and distributions declared or made on the Class A Common Stock. No dividends were declared or paid on this preferred stock in fiscal 2021 or 2020. In addition, these series of preferred stock have certain distribution rights upon liquidation. Upon conversion, shares of these series of preferred stock become authorized but unissued shares of Class A Preferred and may be reissued as part of another series of Class A Preferred. As of March 31, 2021, the Company has an aggregate of 6,765,645 shares of non-designated Class A Preferred authorized for issuance.

28

 

Notes to Consolidated Financial Statements

The Convertible Participating Preferred Stock has a liquidation preference of $12 per share and a stated value of $11.931 per share. There were 33,855 shares outstanding as of March 31, 2021 and 1,500 conversions during the year. The Convertible Participating Preferred Stock, Series 2003 was issued as partial consideration of the purchase price in the Chiquita Processed Foods acquisition. The 967,742 shares issued in that 2003 acquisition were valued at $16.60 per share which represented the then market value of the Class A Common Stock into which the preferred shares were immediately convertible. This series has a liquidation preference of $15.50 per share and has 500 shares outstanding as of March 31, 2021.

There are 407,240 shares of Series A Preferred outstanding as of March 31, 2021which are convertible into one share of Class A Common Stock and one share of Class B Common stock for every 20 shares of Series A Preferred. There are 400,000 shares of Series B Preferred outstanding as of March 31, 2021 which are convertible into one share of Class A Common Stock and one share of Class B Common Stock for every 30 shares of Series B preferred. There are 200,000 shares of 6% Preferred outstanding as of March 31, 2021 which are callable at their par value at any time at the option of the Company. The Company paid dividends of $20,000 on the Series A and Series B Preferred and $3,000 on the 6% Preferred during each of fiscal 2021 and 2020.

Common Stock — The Class A Common Stock and the Class B Common Stock have substantially identical rights with respect to any dividends or distributions of cash or property declared on shares of common stock, and rank equally as to the right to receive proceeds on liquidation or dissolution of the Company after payment of the Company’s indebtedness and liquidation right to the holders of preferred shares. However, holders of Class B Common Stock retain a full vote per share, whereas the holders of Class A Common Stock have voting rights of 1/20th of one vote per share on all matters as to which shareholders of the Company are entitled to vote. During 2021, there were no shares of Class B Common Stock issued in lieu of cash compensation under the Company's Profit Sharing Bonus Plan.

Unissued shares of common stock reserved for conversion privileges of designated non-participating preferred stock were 33,695 of both Class A and Class B as of March 31, 2021 and 2020. Additionally, there were 34,355 and 35,855 shares of Class A reserved for conversion of the Participating Preferred Stock as of March 31, 2021 and 2020, respectively.

Treasury Stock — During 2021 the Company repurchased $4.4 million, or 89,731 shares of its Class A Common Stock and none of its Class B Common Stock. As of March 31, 2021, there is a total of $91.2 million, or 3,103,547 shares, of repurchased stock. These shares are not considered outstanding. The Company contributed $1.5 million or 28,276 treasury shares for the 401(k) match in 2021 as described in Note 10, Retirement Plans.

29

 

Notes to Consolidated Financial Statements

10. Retirement Plans

The Company has a noncontributory defined benefit pension plan (the “Plan”) covering most employees who meet certain age-entry requirements and work a stated minimum number of hours per year. The Plan was amended to freeze accruals to new hires and rehires effective January 1, 2020. Annual contributions made to the Plan are sufficient to satisfy legal funding requirements.

The following tables provide a reconciliation of the changes in the Plan’s benefit obligation and fair value of plan assets over the two-year period ended March 31, 2021 and a statement of the funded (unfunded) status as of March 31, 2021 and 2020:

	2021			2020
	(In thousands)
Change in Benefit Obligation
Benefit obligation at beginning of year	$	278,227		$	250,461
Service cost		9,326			9,244
Interest cost		9,266			9,064
Liability gain due to curtailment		-			(1,114	)
Actuarial loss		17,712			20,146
Benefit payments and expenses		(28,468	)		(9,574	)
Benefit obligation at end of year	$	286,063		$	278,227
Change in Plan Assets
Fair value of plan assets at beginning of year	$	202,485		$	233,112
Actual return on plan assets		103,166			(46,325	)
Employer contributions		73,000			26,000
Benefit payments and expenses		(29,737	)		(10,302	)
Fair value of plan assets at end of year	$	348,914		$	202,485
Funded (Unfunded) Status	$	62,851		$	(75,742	)

The funded status increased by $138.6 million during 2021 reflecting the actual fair value of plan assets and the projected benefit obligation as of March 31, 2021. This funded status increase was recognized via the actual gain on plan assets and the decrease in accumulated other comprehensive loss of $59.8 million after the income tax expense of $19.9 million. During fiscal years 2021 and 2020, the actuarial loss in the pension plan’s projected benefit obligation was primarily driven by data revisions resulting in demographic losses as well as a decline in discount rates. Additionally, the Society of Actuaries released an updated mortality table for fiscal year 2020 and an updated mortality projection scale for both fiscal years 2020 and 2021 which partially offset the actuarial loss.

Plan assets increased from $202.5 million as of March 31, 2020 to $348.9 million as of March 31, 2021 due primarily to a gain on plan assets of $103.2 million and a $73.0 million contribution by the Company.

	2021			2020
	(In thousands)
Amounts Recognized in Accumulated Other Comprehensive Pre-Tax Loss
Prior service cost	$	(258	)	$	(349	)
Net loss		(26,265	)		(105,866	)
Accumulated other comprehensive pre-tax loss	$	(26,523	)	$	(106,215	)

30

 

Notes to Consolidated Financial Statements

	Pension and
	post retirement plan
	adjustments, net
	of tax
	(In thousands)
Accumulated Other Comprehensive Loss
Balance at March 31, 2020	$	(79,220	)
Other comprehensive income		60,153
Balance at March 31, 2021	$	(19,067	)

The following table provides the components of net periodic benefit cost  for the Plan for fiscal years 2021 and 2020: 

	2021			2020
	(In thousands)
Service cost including administration	$	10,627		$	9,935
Interest cost		9,266			9,064
Expected return on plan assets		(15,804	)		(16,746	)
Amortization of net loss		9,919			579
Prior service cost		91			120
Net periodic benefit cost	$	14,099		$	2,952
Settlement/curtailment expense		-			118
Net periodic benefit cost with curtailment	$	14,099		$	3,070

The Company utilizes a full yield curve approach in the estimation of net periodic benefit cost components by applying the specific spot rates along the yield curve used in determination of the benefit obligation to their underlying projected cash flows.

Prior service costs are amortized on a straight-line basis over the average remaining service period of active participants. Gains and losses in excess of 10% of the greater of the benefit obligation and the market-related value of assets are amortized over the average remaining service period of active participants.

31

 

Notes to Consolidated Financial Statements

The assumptions used to measure the Company’s benefit obligation and pension expense are shown in the following table:

	2021			2020
Weighted Average Assumptions for Balance Sheet Liability at End of Year:
Discount rate - projected benefit obligation		3.43	%		3.69	%
Rate of compensation increase		3.00	%		3.00	%
Mortality table		Pri-2012 Blue Collar Generational Table Improvement Scale MP-2020			Pri-2012 Blue Collar Generational Table Improvement Scale MP-2019
Weighted Average Assumptions for Benefit Cost at Beginning of Year:
Discount rate - benefit obligations		3.69	%		4.14	%
Discount rate - interest cost		3.30	%		3.74	%
Discount rate - service cost		3.87	%		4.34	%
Discount rate - interest on service cost		3.43	%		3.69	%
Expected return on plan assets		7.25	%		7.25	%
Rate of compensation increase		3.00	%		3.00	%

The Company's plan assets consist of the following:

	Target			Percentage of Plan
	Allocation			Assets at March 31,
	2022			2021			2020
Plan Assets
Equity securities		50	%		48	%		97	%
Debt securities		50	%		50	%		-
Real estate		-			-			-
Cash		-			2	%		3	%
Total		100	%		100	%		100	%

All securities, which are valued at fair market value, are considered to be level 1, due to their public active market.

Expected Return on Plan Assets

For fiscal 2021, the expected long term rate of return on Plan assets was 7.25%. The Company expected 7.25% to fall within the 35 to 65 percentile range of returns on investment portfolios with asset diversification similar to that of the Plan's target asset allocation for fiscal 2021. The Company will review the long term rate of return on Plan assets for fiscal 2022 in light of changes that were made to the asset allocation in March of 2021.

Investment Policy and Strategy

Historically, the Company maintained an investment policy designed to achieve a long-term rate of return by investing in a diversified portfolio of public company equities seeking to provide long-term growth consistent with the performance of relevant market indices, as well as maintain an adequate level of liquidity for pension distributions as they fall due. The Company is currently in the process of reviewing its investment policy and shifting towards more liability-driven investments to reduce the ongoing volatility of the Plan’s funded status. As an initial step, in March 2021, the Company adjusted the allocation of the Plan assets by moving 50% of the assets into liability-hedging investment grade fixed income investments, while maintaining 50% of the assets in diversified public company equities. Additionally, in FY 2022, the Company intends to implement a glide path approach that will adjust the asset allocation as the Plan’s funded status changes, with more assets being allocated to fixed income investments as the funded status improves to continue to reduce the Plan’s funded status volatility.

32

 

Notes to Consolidated Financial Statements

Cash Flows

Expected contributions for fiscal year ending March 31, 2022 (in thousands):

Expected Employer Contributions	$	-
Expected Employee Contributions	$	-

Estimated future benefit payments reflecting expected future service for the fiscal years ending March 31 (in thousands):

2022	$	11,178
2023		11,290
2024		11,913
2025		12,640
2026		13,342
2027-2031		75,496

401(k) Plans

The Company also has employees’ savings 401(k) plans covering all employees who meet certain age-entry requirements and work a stated minimum number of hours per year. Participants may make contributions up to the legal limit. The Company’s matching contributions are discretionary. Costs charged to operations for the Company’s matching contributions amounted to $1.6 million and $0.4 million in fiscal 2021 and 2020, respectively. In fiscal 2021 and 2020, the matching contribution was entirely treasury stock. This stock portion of the matching contribution is valued at current market value while the treasury stock is valued at cost.

Unfunded Deferred Compensation Plan

The Company sponsors an unfunded nonqualified deferred compensation plan to permit certain eligible employees to defer receipt of a portion of their compensation to a future date. This plan was designed to compensate the plan participants for any loss of company contributions under the 401(k) plans. The total cost for this plan was not significant in fiscal 2021 or 2020.

11. Fair Value of Financial Instruments

The carrying amount and estimated fair values of the Company's debt are summarized as follows (in thousands):

	2021				2020
	Carrying		Estimated		Carrying		Estimated
	Amount		Fair Value		Amount		Fair Value
	(in thousands)
Long-term debt, including current portion	$	98,585	$	97,226	$	217,581	$	217,559

The estimated fair value for long-term debt is determined by the quoted market prices for similar debt (comparable to the Company’s financial strength) or current rates offered to the Company for debt with the same maturities which is Level 2 from the fair value hierarchy. Since quoted prices for identical instruments in active markets are not available (Level 1), the Company makes use of observable market based inputs to calculate fair value, which is Level 2.

33

 

Notes to Consolidated Financial Statements

12. Inventories

Effective December 30, 2007, the Company changed its inventory valuation method from the lower of cost, determined under the FIFO method, or market to the lower of cost, determined under the LIFO method, or market. In the high inflation environment that the Company was experiencing, the Company believed that the LIFO inventory method was preferable over the FIFO method because it better compares the cost of current production to current revenue. The effect of LIFO was to increase continuing net earnings by $11.7 million and $12.8 million in 2021 and 2020, respectively, compared to what would have been reported using the FIFO inventory method. The increase in earnings per share was $1.29 ($1.28 diluted) and $1.38 ($1.37 diluted) in 2021 and 2020, respectively. There was a LIFO liquidation of $6.6 million in 2020, which eliminated all but the base LIFO layer as of March 31, 2020. There were no LIFO liquidations in 2021 as only the base LIFO layer remains. The inventories by category and the impact of using the LIFO method are shown in the following table (in thousands):

	2021		2020
Finished products	$	317,654	$	351,251
In process		25,175		31,173
Raw materials and supplies		128,987		173,474
		471,816		555,898
Less excess of FIFO cost over LIFO cost		128,672		144,267
Total inventories	$	343,144	$	411,631

13. Other Operating Income and Expense

Other operating income in 2021 includes a gain on the sale of the prepared food business of $34.8 million. Additionally the company recorded a loss of $0.8 million on the disposal of equipment from a sold Northwest plant, a loss on the sale of unused fixed assets of $0.4 million, a loss of $3.2 million on the disposition of equipment that was previously held for sale, and a charge of $0.2 for severance. The company also recorded a charge of $1.2 million for a supplemental early retirement plan.

Other operating income in 2020 includes a gain on the partial sale of a plant in the Midwest of $3.3 million and a gain on the sale of a plant in the Northwest of $8.2 million. The Company also recorded a gain on the sale of unused fixed assets of $1.2 million.

34

 

Notes to Consolidated Financial Statements

14. Segment Information

The Company manages its business on the basis of three reportable segments — the primary segment is the packaging and sale of fruits and vegetables, secondarily, the packaging and sale of prepared food products, third, the sale of snack products and finally, other products. The Company markets its product almost entirely in the United States. Export sales represented 6.5% of total sales in both 2021 and 2020. “Other” in the table below represents activity related to can sales, trucking, seed sales, and flight operations.

	Fruit and		Prepared
	Vegetable		Foods		Snack		Other			Total
	(In thousands)
2021:
Net sales	$	1,363,263	$	71,866	$	10,999	$	21,516		$	1,467,644
Operating income		175,810		1,967		705		2,585			181,067
Identifiable assets		853,602		51,803		2,054		773			908,232
Capital expenditures		67,963		1,451		508		1,528			71,450
Depreciation and amortization		29,534		2,299		194		349			32,376
2020:
Net sales	$	1,202,528	$	105,044	$	11,475	$	16,722		$	1,335,769
Operating income (loss)		65,921		3,774		837		(8	)		70,524
Identifiable assets		853,438		51,803		2,054		773			908,068
Capital expenditures		63,543		2,122		19		756			66,440
Depreciation and amortization		26,486		3,564		207		676			30,933

15. Legal Proceedings and Other Contingencies

In the ordinary course of its business, the Company is made a party to certain legal proceedings seeking monetary damages, including proceedings involving product liability claims, workers’ compensation along with other employee claims, tort and other general liability claims, for which it carries insurance, as well as patent infringement and related litigation. The Company is in a highly regulated industry and is also periodically involved in government actions for regulatory violations and other matters surrounding the manufacturing of its products, including, but not limited to, environmental, employee, and product safety issues. While it is not feasible to predict or determine the ultimate outcome of these matters, the Company does not believe that an adverse decision in any of these legal proceedings would have a material adverse impact on its financial position, results of operations, or cash flows.

16. Plant Restructuring

During 2021, the Company recorded a restructuring charge of $0.2 related to closed plants mostly for severance.

During 2020, the Company recorded a restructuring charge of $7.0 million related to the closing of plants in the Midwest and Northwest of which $5.3 million was for accelerated amortization of right-of-use operating lease assets, $2.4 million was mostly related to equipment moves and $1.2 million was related to severance. The Company also recorded a credit of $1.9 million for the reduced lease liability of previously impaired leases.

These charges are included under Plant Restructuring Charge in the Consolidated Statements of Net Earnings. Severance Payable and Other Costs Payable are included in Other Accrued Expenses on the Consolidated Balance Sheets.

35

 

Notes to Consolidated Financial Statements

The following table summarizes the restructuring and related asset impairment charges recorded and the accruals established during 2021 and 2020 (in thousands):

				Other
	Severance			Cost
	Payable			Payable			Total
Balance March 31, 2019	$	225		$	1			226
Charge to expense		1,229			5,817			7,046
Cash payments/write offs		(1,252	)		(5,818	)		(7,070	)
Balance March 31, 2020		202			-			202
Charge to expense		227			(45	)		182
Cash payments/write offs		(429	)		45			(384	)
Balance March 31, 2021	$	-		$	-		$	-

17. Related Party Transactions

During fiscal 2021 and 2020, less than 1% of vegetables supplied to the Company are grown by a Director of Seneca Foods Corporation. The Director supplied the Company approximately $2.2 million and $2.3 million, pursuant to a raw vegetable grower contract in fiscal 2021 and 2020, respectively.  The Chairman of the Audit Committee reviewed the relationship and determined that the contract was negotiated at arm's length and on no more favorable terms than to other growers in the marketplace.

During the years ended March 31, 2021 and 2020, the Company made charitable contributions to a related party foundation in the amount of approximately $1.0 million and $0.3 million, respectively. The Foundation is a nonprofit entity that supports charitable activities by making grants to unrelated organizations or institutions. This Foundation is managed by current employees of the Company. 

36

Report of Independent Registered Public Accounting Firm

To the Stockholders and Board of Directors of Seneca Foods Corporation

Opinion on the Financial Statements

We have audited the accompanying consolidated balance sheets of Seneca Foods Corporation (the “Company”) as of March 31, 2021 and 2020, the related statements of consolidated net earnings, comprehensive income (loss), stockholders' equity, and cash flows for each of the years in the two-year period ended March 31, 2021, and the related notes (collectively referred to as the “financial statements”). In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Company as of March 31, 2021 and 2020, and the results of its operations and its cash flows for each of the years in the two-year period ended March 31, 2021, in conformity with accounting principles generally accepted in the United States of America.

We also have audited the Company’s internal control over financial reporting as of March 31, 2021, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (“PCAOB”), based on criteria established in Internal Control-Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Our report dated June 11, 2021, expresses an unqualified opinion.

Basis for Opinion

The Company's management is responsible for these consolidated financial statements. Our responsibility is to express an opinion on the Company’s consolidated financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

37

Report of Independent Registered Public Accounting Firm

Critical Audit Matter

The critical audit matter communicated below is a matter arising from the current period audit of the financial statements that was communicated or required to be communicated to the audit committee and that (1) relate to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of a critical audit matter does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing separate opinions on the critical audit matter or on the accounts or disclosures to which it relates.

Valuation of Inventory – Refer to Notes 1 and 12 in the financial statements

Critical Audit Matter Description

At March 31, 2021, the Company’s inventory was $343.1 million. As described in Notes 1 and 12 to the consolidated financial statements, the Company accounts for substantially all its inventory at the lower of cost, determined using the last-in, first-out (LIFO) method, or market. As permitted by U.S. generally accepted accounting principles, the Company maintains its inventory costs and cost of goods sold on a first-in, first-out (FIFO) basis and adjusts total inventory and cost of goods sold from FIFO to LIFO at the end of each year. The Company values its inventory under the LIFO method based on the inventory levels and the prevailing inventory costs existing at that time.

We identified valuation of inventory as a critical audit matter because of the significant assumptions, manual calculations, and judgements in the LIFO reserve. Auditing management’s calculation was complex and required a high degree of auditor judgement and subjectivity when performing audit procedures and evaluating the audit evidence obtained.

How the Critical Audit Matter Was Addressed in the Audit

Our audit procedures related to the Company’s LIFO reserve included the following, among others:

● We obtained an understanding, evaluated the design and tested the operating effectiveness of controls over the Company’s calculation of the adjustments to convert FIFO inventory balances to LIFO, including controls over management’s review of the manual calculations described above.

● Tested the completeness, accuracy, and relevance of the underlying data used in management’s calculation to adjust the FIFO inventory balances to LIFO.

● Tested the calculations and application of management’s methodologies related to the valuation estimates of the LIFO reserve.

● Tested the mathematical accuracy of management’s manual calculation.

/s/ Plante Moran, P.C.          

We have served as the Company’s auditor since 2019.

Southfield, Michigan          

June 11, 2021

38

Schedule II

VALUATION AND QUALIFYING ACCOUNTS

(In thousands)

	Balance at		Charged/		Charged to		Deductions			Balance
	beginning		(credited)		other		from			at end
	of period		to income		accounts		reserve			of period
Year-ended March 31, 2021:
Allowance for doubtful accounts	$	1,598	$	(1,304)	$	_	$	(45)	(a)	$	339
Income tax valuation allowance	$	4,473	$	201	$	-	$	-		$	4,674
Year-ended March 31, 2020:
Allowance for doubtful accounts	$	57	$	1,627	$	-	$	86	(a)	$	1,598
Income tax valuation allowance	$	3,988	$	485	$	-	$	-		$	4,473

(a) Accounts written off, net of recoveries.

39

 

Report of Independent Registered Public Accounting Firm

Board of Directors and Stockholders
Seneca Foods Corporation
Marion, New York

The audit referred to in our report dated June 11, 2021 relating to the consolidated financial statements of Seneca Foods Corporation, which is incorporated in Item 8 of Form 10-K by reference to the Annual Report to Shareholders for the years ended March 31, 2021 and 2020 also included the audit of the consolidated financial statement schedule listed in the accompanying index. This consolidated financial statement schedule is the responsibility of the Company's management. Our responsibility is to express an opinion on this consolidated financial statement schedule based on our audit.

In our opinion, such consolidated financial statement schedule, when considered in relation to the basic consolidated financial statements taken as a whole, presents fairly, in all material respects, the information set forth therein.

/s/ Plante Moran, P.C.

We have served as the Company’s auditor since 2019.

Southfield, Michigan
June 11. 2021

40

Corporate Information

Directors
Kathryn J. Boor, Ph.D.	Linda K. Nelson	Arthur S. Wolcott
Dean, College of Agriculture and Life Sciences	Former Chief Financial Officer	Chairman
Cornell University	Birds Eye Foods, Inc.
Peter R. Call	Michael F. Nozzolio	Keith A. Woodward
President	Partner	Former Chief Financial Officer
My-T Acres, Inc.	Harris Beach PLLC	Tennant Company
John P. Gaylord	Donald Stuart
President	Managing Partner/Founder
Jacintoport Terminal Company	Cadent Consulting Group
Officers
Arthur S. Wolcott	Dean E. Erstad	Cynthia L. Fohrd
Chairman	Senior Vice President -	Senior Vice President and
	Sales and Marketing	Chief Administrative Officer
Paul L. Palmby	Matt J. Henschler	John D. Exner
President and Chief Executive Officer	Senior Vice President	General Counsel and Secretary
	Technical Services and Development
Timothy J. Benjamin	Aaron M. Girard	Gregory Ide
Senior Vice President	Senior Vice President of Logistics	Vice President, Controller and
Chief Financial Officer and Treasurer		Assistant Secretary
Timothy R. Nelson	Carl A. Cichetti
Senior Vice President	Senior Vice President - Technology and
Operations	Planning and Chief Information Officer
Operations
Western Vegetable Operations	Accounting	Strategic Sourcing
Jon A. Brekken	Mary Sagona	Leon Lindsay
Vice President	Vice President	Vice President
Human Resources	Technical Services	Eastern Vegetable Operations
Amiee Jo Castleberry	Steven F. Lammers	Eric E. Martin
Vice President	Vice President	Vice President
Human Resources	Technical Services	Process Excellence
Diane Marciano	Benjamin M. Scherwitz	Paul Hendrickson
Vice President	Vice President	Vice President
Procurement and Contract Manufacturing	Technology Operations	Seneca Flight
Mark W. Forsting	Timothy Nolan	Richard Leppert
Vice President	Vice President	General Manager
Customer Service	Seneca Snack
Richard L. Waldorf	Beth Newell
Vice President	General Manager
Sales and Marketing Groups
Branded Sales	International	E-Business
Carl B. Bowling	Kevin F. Lipps	Aaron L. Wadell
Vice President	Vice President	Vice President
Foodservice Dry Grocery	Industrial and Ingredient Sales	Marketing
Beau P. Simonson	Victoria A. Ninneman	Bruce S. Wolcott
Vice President	Vice President	Vice President
Private Label Retail	Frozen Sales	Glace Sales
George E. Hopkins, III	Stephen J. Ott	Tracy Shhulis
Vice President	Vice President	Vice President

41

EX-21

Exhibit 21

LIST OF SUBSIDIARIES

The following is a listing of significant subsidiaries 100% owned by Seneca Foods Corporation, directly or indirectly:

Name	State
Cannacan Inc.	Delaware
Dundee Insurance Company, Inc.	Utah
Gray & Company	Oregon
Gray Glace Products Company	Oregon
Green Valley Foods LLC	Delaware
Marion Foods, Inc.	New York
Portland Food Products Company	Oregon
Seneca Foods, LLC	Delaware
Seneca Snack Company	Washington

EX-23.1

Exhibit 23.1

Consent of Independent Registered Public Accounting Firm

We consent to the incorporation by reference in the registration statements (No. 333-12365, 333-145916 and 333-166846) on Form S-8 of Seneca Foods Corporation with respect to our reports dated June 11, 2021, relating to the financial statements and the effectiveness of Seneca Foods Corporation’s internal control over financial reporting, which appear in the Annual Report to Shareholders which is incorporated by reference in this Annual Report on From 10-K.  We also consent to the incorporation by reference of our report dated June 11, 2021 relating to the consolidated financial statement schedule, which appears in this Form 10-K

/s/ Plante Moran, P.C.

June 11, 2021

Southfield, Michigan

EX-31.1

EXHIBIT 31.1

CERTIFICATION

I, Paul L. Palmby, certify that:

1. I have reviewed this annual report on Form 10-K of Seneca Foods Corporation;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the Registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the Registrant’s internal control over financial reporting that occurred during the Registrant’s most recent fiscal quarter (the Registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting; and

5. The Registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Registrant’s auditors and the audit committee of the Registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant’s internal control over financial reporting.

Dated: June 11, 2021	By: /s/Paul L. Palmby
	Paul L. Palmby President and Chief Executive Officer

EX-31.2

EXHIBIT 31.2

CERTIFICATION

I, Timothy J. Benjamin, certify that:

1. I have reviewed this annual report on Form 10-K of Seneca Foods Corporation;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the Registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the Registrant’s internal control over financial reporting that occurred during the Registrant’s most recent fiscal quarter (the Registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting; and

5. The Registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Registrant’s auditors and the audit committee of the Registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant’s internal control over financial reporting.

Dated: June 11, 2021	By: /s/ Timothy J. Benjamin
	Timothy J. Benjamin Senior Vice President, Chief Financial Officer and Treasurer

EX-32

EXHIBIT 32

CERTIFICATION PURSUANT TO

18. U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Annual Report of Seneca Foods Corporation (the "Registrant") on Form 10-K for the period ended March 31, 2021 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), we, Paul L. Palmby, President, Chief Executive Officer and Timothy J. Benjamin, Chief Financial Officer of the Registrant, certify, pursuant to 18 U.S.C. 1350, as adopted pursuant to 906 of the Sarbanes-Oxley Act of 2002, that, to our knowledge:

(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Registrant.

By: /s/Paul L. Palmby              

Paul L. Palmby

President and Chief Executive Officer

June 11, 2021

By: /s/Timothy J. Benjamin               

Timothy J. Benjamin

Senior Vice President, Chief Financial Officer

and Treasurer

June 11, 2021

XML

Document And Entity Information - USD ($)	Mar. 31, 2021	May 25, 2021	Sep. 25, 2020
Document Information [Line Items]
Entity Registrant Name	SENECA FOODS CORPORATION
Current Fiscal Year End Date	--03-31
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2021
Document, Type	10-K
Document, Annual Report	true
Document, Period End Date	Mar. 31, 2021
Document, Transition Report	false
Entity, File Number	0-01989
Entity, Incorporation, State or Country Code	NY
Entity, Address, Address Line One	3736 South Main Street
Entity, Address, City or Town	Marion
Entity, Address, State or Province	NY
Entity, Tax Identification Number	16-0733425
Entity, Address, Postal Zip Code	14505
City Area Code	315
Local Phone Number	926-8100
Entity, Well-known Seasoned Issuer	No
Entity, Voluntary Filers	No
Entity, Current Reporting Status	Yes
Entity, Interactive Data, Current	Yes
Entity, Filer Category	Accelerated Filer
Entity, Small Business	true
Entity, Emerging Growth Company	false
Entity, Shell Company	false
Entity, Public Float			$ 232,133,327
Documents Incorporated By Reference Text Block	Portions of the Annual Report to shareholders for fiscal year ended March 31, 2021 (the “2021 Annual Report”) applicable to Part I, Item 1, Part II, Items 5‑9A and Part IV, Item 15 of Form 10‑K.
Amendment Flag	false
Entity Central Index Key	0000088948
ICFR Auditor Attestation Flag	true
CommonStockClassA Custom [Member]
Document Information [Line Items]
Title of 12(b) Security	Common Stock Class A
Trading Symbol	SENEA
Security Exchange Name	NASDAQ
Entity, Common Stock Shares, Outstanding		7,343,745
CommonStockClassB Custom [Member]
Document Information [Line Items]
Title of 12(b) Security	Common Stock Class B
Trading Symbol	SENEB
Security Exchange Name	NASDAQ
Entity, Common Stock Shares, Outstanding		1,705,938

XML

Consolidated Statements of Net Earnings - USD ($) $ in Thousands	12 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Net sales	$ 1,467,644	$ 1,335,769
Costs and expenses:
Cost of products sold	1,235,459	1,193,881
Selling, general, and administrative expense	79,950	76,971
Other operating income, net	(29,014)	(12,653)
Plant restructuring charge	182	7,046
Total costs and expenses	1,286,577	1,265,245
Operating income	181,067	70,524
Loss from equity investment	11,453	93
Other loss (income)	3,473	(7,018)
Interest expense, net of interest income of $42 and $25, respectively	6,125	11,834
Earnings From Continuing Operations Before Income Taxes	160,016	65,615
Income Taxes From Continuing Operations	33,916	14,427
Earnings From Continuing Operations	126,100	51,188
Earnings From Discontinued Operations (net of income taxes)	0	1,147
Net Earnings	$ 126,100	$ 52,335
Basic Earnings per Common Share:
Continuing Operations (in dollars per share)	$ 13.82	$ 5.50
Discontinued Operations (in dollars per share)	0	0.12
Net Basic Earnings per Common Share (in dollars per share)	13.82	5.62
Diluted Earnings per Common Share:
Continuing Operations (in dollars per share)	13.72	5.46
Discontinued Operations (in dollars per share)	0	0.12
Net Diluted Earnings per Common Share (in dollars per share)	$ 13.72	$ 5.58

XML

Consolidated Statements of Net Earnings (Parentheticals) - USD ($) $ in Thousands	12 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Interest income	$ 42	$ 25

XML

Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands	12 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Comprehensive income (loss):
Net earnings	$ 126,100	$ 52,335
Change in pension and postretirement benefits (net of income tax of ($19,528) and $20,312, respectively)	60,153	(60,935)
Total	$ 186,253	$ (8,600)

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Consolidated Statements of Comprehensive Income (Loss) (Parentheticals) - USD ($) $ in Thousands	12 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Change in pension and postretirement benefits, tax	$ (19,528)	$ 20,312

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Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2021	Mar. 31, 2020
Current Assets:
Cash and cash equivalents	$ 59,837	$ 10,702
Accounts receivable, less allowance for doubtful accounts of $339 and $1,598, respectively	92,221	109,802
Contracts receivable	911	7,610
Inventories	343,144	411,631
Refundable income taxes	8,385	4,350
Other current assets	2,807	7,323
Total Current Assets	516,299	551,600
Deferred income tax asset, net	0	7,872
Noncurrent assets held for sale-discontinued operations	778	1,026
Other assets	8,033	26,042
Pension assets	62,851	0
Right-of-use assets operating, net	42,193	60,663
Right-of-use assets financing, net	30,611	33,617
Property, plant, and equipment:
Land	26,031	24,955
Buildings and improvements	188,332	184,945
Equipment	430,526	408,385
Total	644,889	618,285
Less accumulated depreciation and amortization	396,306	389,796
Net property, plant, and equipment	248,583	228,489
Total Assets	909,348	909,309
Current Liabilities:
Accounts payable	74,089	71,194
Deferred revenue	4,287	7,758
Accrued vacation	11,660	11,876
Accrued payroll	15,366	11,864
Other accrued expenses	24,403	17,808
Current liabilities held for sale-discontinued operations	0	880
Current portion of long-term debt and lease obligations	28,325	28,274
Total Current Liabilities	158,130	149,654
Long-term debt, less current portion	94,085	217,081
Operating lease obligations, less current portion	27,769	42,760
Financing lease obligations, less current portion	19,232	24,366
Pension liabilities	0	75,742
Other liabilities	4,011	5,342
Deferred Income Tax Liabilities, Net, Total	28,306	0
Total Liabilities	331,533	514,945
Commitments and contingencies
Stockholders’ Equity:
Preferred stock	663	681
Common stock	3,041	3,041
Additional paid-in capital	98,502	98,384
Treasury stock, at cost	(91,198)	(88,319)
Accumulated other comprehensive loss	(19,067)	(79,220)
Retained earnings	585,874	459,797
Total Stockholders’ Equity	577,815	394,364
Total Liabilities and Stockholders’ Equity	909,348	909,309
Discontinued Operations, Held-for-sale [Member]
Current Assets:
Current Assets Held For Sale	338	182
Disposal Group, Held-for-sale, Not Discontinued Operations [Member]
Current Assets:
Current Assets Held For Sale	$ 8,656	$ 0

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Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands	Mar. 31, 2021	Mar. 31, 2020
Allowance for doubtful accounts	$ 339	$ 1,598

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Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Cash flows from operating activities:
Net earnings	$ 126,100	$ 52,335
Adjustments to reconcile net earnings to net cash provided by operations:
Depreciation and amortization	32,375	30,933
Deferred income tax expense	16,650	15,529
Gain on the sale of assets	(31,938)	(13,086)
Restructuring provision	182	5,626
Loss from equity investment	11,453	93
401(k) match stock contribution	1,479	94
Changes in operating assets and liabilities (net of acquisitions):
Accounts and contracts receivable	24,280	(33,290)
Inventories	68,487	90,053
Other current assets	4,083	(4,332)
Accounts payable, accrued expenses, and other liabilities	(65,936)	(13,509)
Income taxes	(4,035)	(3,129)
Net cash provided by operating activities	183,180	127,317
Cash flows from investing activities:
Additions to property, plant, and equipment	(71,431)	(65,686)
Proceeds from the sale of assets	73,688	22,529
Net cash provided by (used in) investing activities	2,257	(43,157)
Cash flows from financing activities:
Proceeds from issuance of long-term debt	478,059	494,098
Payments of long-term debt	(597,055)	(542,778)
Payments on financing leases	(6,321)	(6,437)
Change in other assets	(6,604)	(17,125)
Purchase of treasury stock	(4,358)	(12,673)
Preferred stock dividends paid	(23)	(23)
Net cash used in financing activities	(136,302)	(84,938)
Net increase (decrease) in cash and cash equivalents	49,135	(778)
Cash and cash equivalents, beginning of year	10,702	11,480
Cash and cash equivalents, end of year	59,837	10,702
Supplemental disclosures of cash flow information:
Interest	5,094	10,836
Income taxes paid	22,692	573
Noncash transactions:
Investment in CraftAg. LLC via contribution of plant	0	7,975
Property, plant and equipment issued under finance and operating leases	3,749	10,843
Property, plant and equipment purchased on account	$ 19	$ 754

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Consolidated Statements of Stockholders' Equity - USD ($)	Retained Earnings [Member] Cumulative Effect, Period of Adoption, Adjustment [Member]	Retained Earnings [Member]	Preferred Stock [Member] Cumulative Effect, Period of Adoption, Adjustment [Member]	Preferred Stock [Member]	Common Stock [Member] Cumulative Effect, Period of Adoption, Adjustment [Member]	Common Stock [Member]	Additional Paid-in Capital [Member] Cumulative Effect, Period of Adoption, Adjustment [Member]	Additional Paid-in Capital [Member]	Treasury Stock [Member] Cumulative Effect, Period of Adoption, Adjustment [Member]	Treasury Stock [Member]	AOCI Attributable to Parent [Member] Cumulative Effect, Period of Adoption, Adjustment [Member]	AOCI Attributable to Parent [Member]	Cumulative Preferred Stock [Member]	Cumulative Convertible Preferred Stock [Member]	Participating Convertible Preferred Stock [Member]	Series 2003 Convertible Preferred Stock [Member]	Common Class A [Member]	Common Class B [Member]	Total
Balance (Accounting Standards Update 2016-02 [Member]) at Mar. 31, 2019	$ (2,019,000)
Balance at Mar. 31, 2019		$ 409,504,000		$ 707,000		$ 3,039,000		$ 98,260,000		$ (75,740,000)		$ (18,285,000)
Net earnings		52,335,000		0		0		0		0		0							$ 52,335,000
Cash dividends paid on preferred stock		(23,000)		0		0		0		0		0	$ (3,000)
Equity incentive program		0		0		0		100,000		0		0
Contribution of 401(k) match		0		0		0		0		94,000		0
Purchase of treasury stock		0		0		0		0		(12,673,000)		0
Preferred stock conversion		0		(26,000)		2,000		24,000		0		0
Change in pension and postretirement benefits adjustment (net of tax)		0		0		0		0		0		(60,935,000)
Balance at Mar. 31, 2020		459,797,000		681,000		3,041,000		98,384,000		(88,319,000)		(79,220,000)							394,364,000
Preferred stock, shares outstanding (in shares)													200,000	807,240	35,355	500
Common stock, shares outstanding (in shares)																	7,383,993	1,733,902
Net earnings		126,100,000		0		0		0		0		0							126,100,000
Cash dividends paid on preferred stock		(23,000)		0		0		0		0		0	$ (3,000)						(23,000)
Equity incentive program		0		0		0		100,000		0		0
Contribution of 401(k) match		0		0		0		0		1,479,000		0
Purchase of treasury stock		0		0		0		0		(4,358,000)		0					$ (4,400,000)
Preferred stock conversion		0		(18,000)		0		18,000		0		0
Change in pension and postretirement benefits adjustment (net of tax)		0		0		0		0		0		60,153,000
Balance at Mar. 31, 2021		$ 585,874,000		$ 663,000		$ 3,041,000		$ 98,502,000		$ (91,198,000)		$ (19,067,000)							$ 577,815,000
Preferred stock, shares authorized (in shares)													200,000	1,400,000	33,855	500
Common stock, shares authorized (in shares)																	20,000,000	10,000,000
Preferred stock, shares outstanding (in shares)													200,000	807,240	33,855	500
Common stock, shares outstanding (in shares)																	7,353,545	1,709,638
Preferred stock, stock amount													$ 50,000	$ 202,000	$ 403,000	$ 8,000
Common stock, stock amount																	$ 2,545,000	$ 496,000

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Consolidated Statements of Stockholders' Equity (Parentheticals) - USD ($) $ in Thousands	12 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Cumulative Preferred Stock [Member]
Preferred stock, dividend rate	6.00%
Preferred stock, par value (in dollars per share)	$ 0.25
Cumulative Convertible Preferred Stock [Member]
Preferred stock, dividend rate	10.00%
Preferred stock, par value (in dollars per share)	$ 0.025
Participating Convertible Preferred Stock [Member]
Preferred stock, par value (in dollars per share)	0.025
Series 2003 Convertible Preferred Stock [Member]
Preferred stock, par value (in dollars per share)	0.025
Common Class A [Member]
Common stock, par value (in dollars per share)	0.25
Common Class B [Member]
Common stock, par value (in dollars per share)	$ 0.25
Accounting Standards Update 2016-02 [Member]
Operating lease impairment adjustment upon the adoption of ASU 2016-02 "Leases", tax		$ 673
Operating lease impairment adjustment upon the adoption of ASU 2016-02 "Leases", tax	$ 33,916	14,427
Change in pension and postretirement benefits, tax	$ (19,528)	$ 20,312

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Note 1 - Summary of Significant Accounting Policies

12 Months Ended

Mar. 31, 2021

Notes to Financial Statements

Significant Accounting Policies [Text Block]

1. Summary of Significant Accounting Policies

Nature of Operations — Seneca Foods Corporation (the “Parent Company”) and subsidiaries (the “Company”) currently has 26 plants and 25 warehouses in eight states in support of its operations. The Company markets private label and branded packaged foods to retailers and institutional food distributors.

Principles of Consolidation — The consolidated financial statements include the accounts for the Parent Company and all of its wholly-owned subsidiaries after elimination of intercompany transactions, profits, and balances.

Revenue Recognition — Revenue recognition is completed primarily at a point in time basis when product control is transferred to the customer.  In general, control transfers to the customer when the product is shipped or delivered to the customer based upon applicable shipping terms, as the customer can direct the use and obtain substantially all of the remaining benefits from the asset at this point in time.  See Note 4, Revenue Recognition, for further discussion of the policy.

Trade promotions are an important component of the sales and marketing of the Company’s branded products, and are critical to the support of the business. Trade promotion costs, which are recorded as a reduction of sales, include amounts paid to retailers for shelf space, to obtain favorable display positions and to offer temporary price reductions for the sale of our products to consumers. Accruals for trade promotions are recorded primarily at the time of sale to the retailer based on expected levels of performance. Settlement of these liabilities typically occurs in subsequent periods primarily through an authorized process for deductions taken by a retailer from amounts otherwise due to the Company. As a result, the ultimate cost of a trade promotion program is dependent on the relative success of the events and the actions and level of deductions taken by retailers. Final determination of the permissible deductions may take extended periods of time.

Concentration of Credit Risk — Financial instruments that potentially subject the Company to credit risk consist of trade receivables and interest-bearing investments. Wholesale and retail food distributors comprise a significant portion of the trade receivables; collateral is generally not required. A relatively limited number of customers account for a large percentage of the Company’s total net sales. The top ten customers represented approximately 50%, and 49% of net sales for 2021 and 2020, respectively. The Company closely monitors the credit risk associated with its customers. The Company places substantially all of its interest-bearing investments with financial institutions and monitors credit exposure. Cash and short-term investments in certain accounts exceed the federal insured limit; however, the Company has not experienced any losses in such accounts.

Cash Equivalents — The Company considers all highly liquid instruments purchased with an original maturity of three months or less as cash equivalents. As of March 31, 2021, the Company had $47.4 million of cash and cash equivalents invested in a money market fund that invests in high-quality, short-term obligations that present minimal credit risk including U.S. government securities, demand notes of U.S. and foreign corporations, certificates of deposit and time deposits, and asset backed securities. There were no such investments as of March 31, 2020.

Fair Value of Financial Instruments — The carrying values of cash and cash equivalents (Level 1), accounts receivable, short-term debt (Level 2) and accounts payable approximate fair value because of the immediate or short-term maturity of these financial instruments. See Note 11, Fair Value of Financial Instruments, for a discussion of the fair value of long-term debt.

The three-tier value hierarchy is utilized to prioritize the inputs used in measuring fair value. The hierarchy gives the highest priority to quoted prices in active markets (Level 1) and the lowest priority to unobserved inputs (Level 3). The three levels are defined as follows:

● Level 1- Quoted prices for identical instruments in active markets.

● Level 2- Quoted prices for similar instruments; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs or significant value-drivers are observable.

● Level 3- Model-derived valuations in which one or more inputs or value-drivers are both significant to the fair value measurement and unobservable.

Cash and cash equivalents as of March 31, 2021 include an investment in a money market fund, which is classified within Level 1 of the fair value hierarchy because it has readily-available market prices in active markets that are publicly accessible at the measurement date.

Deferred Financing Costs — Deferred financing costs incurred in obtaining debt are amortized on a straight-line basis over the term of the debt, which is not materially different than using the effective interest rate method. As of March 31, 2021 there were $0.9 million of unamortized financing cost included in other current assets and $0.1 million of unamortized financing costs included as a contra to long-term debt and current portion of long-term debt on the Consolidated Balance Sheets.

Inventories — Substantially all inventories are stated at the lower of cost; determined under the last-in, first-out (“LIFO”) method; or market.

Income Taxes — The provision for income taxes includes federal and state income taxes currently payable and those deferred because of temporary differences between the financial statement and tax basis of assets and liabilities and tax credit carryforwards. The Company uses the flow-through method to account for its investment tax credits.

The Company evaluates the likelihood of realization of its net deferred income tax assets by assessing its valuation allowance and by adjusting the amount of such allowance, if necessary. The factors used to assess the likelihood of realization are the Company’s forecast of future taxable income, the projected reversal of temporary differences and available tax planning strategies that could be implemented to realize the net deferred income tax assets.

Current rules on the accounting for uncertainty on income taxes prescribe a minimum recognition threshold for a tax position taken or expected to be taken in a tax return that is required to be met before being recognized in the financial statements. Those rules also provide guidance on derecognition, measurement, classification, interest and penalties, accounting in interim periods, disclosure and transition. The Company recognizes interest and penalties accrued on unrecognized tax benefits as well as interest received from favorable settlements within income tax expense.

Assets Held for Sale—The Company classifies property and equipment as held for sale when certain criteria are met. At such time, the properties, including significant assets that are expected to be transferred as part of a sale transaction, are presented separately on the consolidated balance sheet at the lower of carrying value or estimated fair value less costs to sell and depreciation is no longer recognized. Assets classified as held for sale included buildings, land and equipment.

Discontinued Operations — Discontinued operations comprise those activities that have been disposed of during the period or that have been classified as held for sale at the end of the period, and represent a separate major line of business or geographical area that can be clearly distinguished for operational and financial reporting purposes. In fiscal 2019, the Company sold its Modesto fruit operations and began reporting the results of operations, cash flows and the balance sheet amounts pertaining to this as a component of discontinued operations in the consolidated financial statements.

Unless otherwise indicated, information in the notes to the consolidated financial statements relates to continuing operations.

Advertising Costs — Advertising costs are expensed as incurred. Advertising costs charged to continuing operations were $1.8 million and $2.2 million in 2021 and 2020, respectively.

Accounts Receivable and Doubtful Accounts — Accounts receivable is stated at invoice value, which is net of any off invoice promotions.  A provision for doubtful accounts is recorded based upon an assessment of credit risk within the accounts receivable portfolio, experience of delinquencies (accounts over 15 days past due) and charge-offs (accounts removed from accounts receivable for expectation of non-payment), and current market conditions. Management believes these provisions are adequate based upon the relevant information presently available.

Earnings per Common Share — The Company has three series of convertible preferred stock, which are deemed to be participating securities that are entitled to participate in any dividend on Class A common stock as if the preferred stock had been converted into common stock immediately prior to the record date for such dividend. Basic earnings per share for common stock is calculated using the “two-class” method by dividing the earnings attributable to common stockholders by the weighted average of common shares outstanding during the period. Restricted stock is included in all earnings per share calculations.

Diluted earnings per share is calculated by dividing earnings attributable to common stockholders by the sum of the weighted average common shares outstanding plus the dilutive effect of convertible preferred stock using the “if-converted” method, which treats the contingently-issuable shares of convertible preferred stock as common stock.

Years ended March 31,	2021		2020
Continuing Operations	(In thousands, except per share amounts)
Basic
Continuing operations earnings	$	126,100	$	51,188
Deduct preferred stock dividends		23		23
Undistributed earnings		126,077		51,165
Earnings attributable to participating preferred shareholders		493		206
Earnings attributable to common shareholders	$	125,584	$	50,959
Weighted average common shares outstanding		9,088		9,264
Basic earnings from continuing operations per common share	$	13.82	$	5.50
Diluted
Earnings attributable to common shareholders	$	125,584	$	50,959
Add dividends on convertible preferred stock		20		20
Earnings attributable to common stock on a diluted basis	$	125,604	$	50,979
Weighted average common shares outstanding-basic		9,088		9,264
Additional shares to be issued related to the equity compensation plan		3		2
Additional shares to be issued under full conversion of preferred stock		67		67
Total shares for diluted		9,158		9,333
Diluted earnings from continuing operations per share	$	13.72	$	5.46

Years ended March 31,	2021		2020
Discontinued Operations	(In thousands, except per share amounts)
Basic
Discontinued operations earnings	$	-	$	1,147
Deduct preferred stock dividends		-		23
Undistributed earnings		-		1,124
Earnings attributable to participating preferred shareholders		-		5
Earnings attributable to common shareholders	$	-	$	1,119
Weighted average common shares outstanding				9,264
Basic earnings from discontinued operations per common share	$	-	$	0.12
Diluted
Earnings attributable to common shareholders	$	-	$	1,119
Add dividends on convertible preferred stock		-		20
Earnings attributable to common stock on a diluted basis	$	-	$	1,139
Weighted average common shares outstanding-basic		-		9,264
Additional shares to be issued related to the equity compensation plan		-		2
Additional shares to be issued under full conversion of preferred stock		-		67
Total shares for diluted		-		9,333
Diluted earnings from discontinued operations per share	$	-	$	0.12

Depreciation and Valuation — Property, plant, and equipment are stated at cost. Interest incurred during the construction of major projects is capitalized. For financial reporting, the Company provides for depreciation on the straight-line method at rates based upon the estimated useful lives of the various assets. Depreciation was $27.1 million and $26.1 million, in 2021, and 2020, respectively. The estimated useful lives are as follows: buildings and improvements — 30 years; machinery and equipment — 10-15 years; computer software — 3-5 years; vehicles — 3-7 years; and land improvements — 10-20 years.

The Company assesses its long-lived assets for impairment whenever there is an indicator of impairment. Impairment losses are evaluated if the estimated undiscounted cash flows from using the assets are less than carrying value. A loss is recognized when the carrying value of an asset exceeds its fair value.

Additionally, the Company’s assesses the potential for an other-than-temporary impairment of its equity method investment when impairment indicators are identified. The Company considers all available information, including the recoverability of the investment, the earnings and near-term prospects of the investment, factors related to the industry, amongst others relevant information. If an investment is considered to be impaired and the decline in value is other than temporary, an impairment charge is recorded. During 2021, the Company recorded an other-than-temporary impairment charge of $9.7 million to its equity method investment representing the difference between the carrying value of the Company’s investment and its proportionate share of the investment’s fair value. This charge was included in “Loss from equity investment” in the Company’s Consolidated Statements of Net Earnings. There were no significant impairment losses in 2020.

Use of Estimates in the Preparation of Financial Statements — The preparation of financial statements in conformity with accounting principles generally accepted in the United States ("GAAP") requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements, as well as the related revenues and expenses during the reporting period. Actual amounts could differ from those estimates.

Recently Issued Accounting Standards — In August 2018, the FASB issued ASU No. 2018-14, Compensation—Retirement Benefits—Defined Benefit Plans—General (Topic 715-20): Disclosure Framework—Changes to the Disclosure Requirements for Defined Benefit Plans, which modifies the disclosure requirements for defined benefit pension plans and other postretirement plans. ASU 2018-14 became effective for annual periods ending after December 15, 2020. The Company adopted the standard for its fiscal year ended March 31, 2021 and the adoption of ASU 2018-14 did not have an impact on the consolidated financial statements as this ASU only modified disclosure requirements. See Note 10 “Retirement Plants” and related disclosures.

In May 2020, the SEC issued a final rule that amends the financial statement requirements for acquisitions and dispositions of businesses. The amendments primarily relate to disclosures required by Rule 3-05 and Article 11 of Regulation S-X. Among other things, the final rule modifies the tests provided in Rule 1-02(w) of Regulation S-X used to determine whether a subsidiary or an acquired or disposed business is significant. The amendments took effect January 1, 2021 and the Company elected not to early adopt the provisions of the final rule prior to that date. Therefore the final rule became effective January 1, 2021 and did not impact the Company’s financial statement disclosures in fiscal 2021.

In March 2020, the FASB issued Accounting Standards Update (“ASU”) 2020-04, Reference Rate Reform: Facilitation of the Effects of Reference Rate Reform on Financial Reporting which provides optional guidance for a limited time to ease the potential accounting burden associated with the expected market transition away from the London Interbank Offered Rate (LIBOR) and other interbank offered rates to alternative reference rates. LIBOR is used to determine interest expense related to the Company’s Revolver, which matures in 2026. This update was effective starting March 12, 2020 and the Company may elect to apply the amendments prospectively through December 31, 2022. We are currently evaluating the effect that ASU 2020-04 will have on our consolidated financial statements and related disclosures.

In December 2019, the FASB issued ASU No. 2019-12 to simplify the accounting for income taxes by removing certain exceptions to the general principles and simplify areas such as franchise taxes, step-up in tax basis goodwill, separate entity financial statements and interim recognition of enacted tax laws or rate changes. The new standard will be effective for the Company in the first quarter fiscal year 2022. We are currently evaluating the effect that the new standard will have on the Company’s financial position, results of operations and related disclosures.

In June 2016, the FASB issued ASU No. 2016-13, "Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments," which was subsequently amended in November 2018 through ASU No. 2018-19, "Codification Improvements to Topic 326, Financial Instruments - Credit Losses." ASU No. 2016-13 will require entities to estimate lifetime expected credit losses for trade and other receivables along with other financial instruments which will result in earlier recognition of credit losses. Further, the new credit loss model will affect how entities in all industries estimate their allowance for losses for receivables that are current with respect to their payment terms. In November 2019, the FASB issued ASU No. 2019-10, which, among other things, deferred the application of the new guidance on credit losses for smaller reporting companies to fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. This guidance will be applied through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective (i.e., a modified-retrospective approach). Under the above-mentioned deferral, the Company expects to adopt ASU No. 2016-03, and the related ASU No. 2018-19 amendments, beginning as of April 1, 2023 and is in the process of assessing the impact, if any, that this new guidance is expected to have on the Company’s results of operations, financial condition and/or financial statement disclosures.

Reclassifications — Certain previously reported amounts have been reclassified to conform to the current period classification.

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Note 2 - Assets Held For Sale

12 Months Ended

Mar. 31, 2021

Disposal Group, Held-for-sale, Not Discontinued Operations [Member]

Notes to Financial Statements

Disposal Groups, Including Discontinued Operations, Disclosure [Text Block]

2. Assets Held For Sale

As of March 31, 2021, the Company has certain non-operating units in the Midwest and equipment in the Northwest that have met the criteria to be classified as held for sale, which requires the Company to present the related assets and liabilities as separate line items in our Condensed Consolidated Balance Sheet. The Company recorded a charge of $0.6 million in fiscal 2021 in order to properly reflect the carrying value of the assets held for sale as equal to the lower of carrying value or fair value less costs to sell. The following table presents information related to the major classes of assets and liabilities that were held for sale in our Condensed Consolidated Balance sheets (in thousands):

	March 31, 2021
Property, Plant and Equipment (net)	$	8,656
Current Assets Held For Sale	$	8,656

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Note 3 - Discontinued Operations

12 Months Ended

Mar. 31, 2021

Discontinued Operations [Member]

Notes to Financial Statements

Disposal Groups, Including Discontinued Operations, Disclosure [Text Block]

3. Discontinued Operations

On July 13, 2018, the Company executed a nonbinding letter of intent with a perspective buyer of the Modesto facility. On October 9, 2018, the Company closed on the sale of the facility to this outside buyer with net proceeds of $63,326,000. Based on its magnitude of revenue to the Company (approximately 15%) and because the Company was exiting the production of peaches, this sale represented a significant strategic shift that has a material effect on the Company’s operations and financial results. Accordingly, the Company has applied discontinued operations treatment for this sale as required by Accounting Standards Codification 210-05—Discontinued Operations. This business we are exiting is part of the Fruit and Vegetable segment.

The following table presents information related to the major classes of assets and liabilities of Modesto that are classified as Held For Sale-Discontinued Operations in the Company's Consolidated Condensed balance sheets (in thousands):

	March 31, 2021		March 31, 2020
Other Current Assets	$	338	$	182
Current Assets Held For Sale-Discontinued Operations	$	338	$	182
Other Assets	$	778	$	1,026
Noncurrent Assets Held For Sale-Discontinued Operations	$	778	$	1,026
Accounts Payable and Accrued Expenses	$	-	$	880
Current Liabilities Held For Sale-Discontinued Operations	$	-	$	880

The operating results of the discontinued operations that are reflected in the Unaudited Condensed Consolidated Statements of Net Earnings from discontinued operations are as follows (in thousands):

	Twelve Months Ended
	March 31, 2021		March 31, 2020
Net Sales	$	-	$	-
Costs and Expenses:
Cost of Product Sold		-		57
Selling, General and Administrative		-		-
Plant Restructuring Charge (a)		-		(1,150	)
Interest Expense		-		-
Total cost and expenses		-		(1,093	)
Earnings From Discontinued Operations Before Income Taxes		-		1,093
Gain on the Sale of Assets Before Income Taxes		-		(430	)
Income Tax Expense		-		376
Net Earnings From Discontinued Operations, Net of Tax	$	-	$	1,147

(a) Includes $902,000 credit for pension termination in fiscal 2020.

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Note 4 - Revenue Recognition

12 Months Ended

Mar. 31, 2021

Notes to Financial Statements

Revenue from Contract with Customer [Text Block]

4. Revenue Recognition

The Company applies the provisions of ASC 606-10, Revenue from Contracts with Customers, and recognizes revenue under the core principle to depict the transfer of products to customers in an amount reflecting the consideration the Company expects to receive. The Company conducts its business almost entirely in food packaging, which contributed approximately 98% of the Company's fiscal year 2021 net sales.

Nature of products

The Company manufactures and sells the following:

• private label products to retailers, such as supermarkets, mass merchandisers, and specialty retailers, for resale under the retailers’ own or controlled labels;

• private label and branded products to the foodservice industry, including foodservice distributors and national restaurant operators;

• branded products under our own proprietary brands, primarily on a national basis to retailers;

• branded products under co-pack agreements to other major branded companies for their distribution; and

• products to our industrial customer base for repackaging in portion control packages and for use as ingredients by other food manufacturers.

Disaggregation of revenue

In the following table, segment revenue is disaggregated by product category groups (in thousands):

	Year Ended
	March 31, 2021		March 31 ,2020
Canned Vegetables	$	1,172,635	$	986,080
Frozen		102,339		119,044
Fruit Products		88,289		97,393
Prepared Foods		71,866		105,044
Chip Products		10,999		11,475
Other		21,516		16,733
Total	$	1,467,644	$	1,335,769

When Performance Obligations Are Satisfied

A performance obligation is a promise in a contract to transfer a distinct good or service to the customer and is the unit of account for revenue recognition.  A contract’s transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied.  The Company’s primary performance obligation is the production of food products and secondarily case and labeling services and storage services for certain bill and hold sales.

Revenue recognition is completed primarily at a point in time basis when product control is transferred to the customer.  In general, control transfers to the customer when the product is shipped or delivered to the customer based upon applicable shipping terms, as the customer can direct the use and obtain substantially all of the remaining benefits from the asset at this point in time.  

Customer contracts generally do not include more than one performance obligation.  When a contract does contain more than one performance obligation, we allocate the contract’s transaction price to each performance obligation based on its relative standalone selling price.  The standalone selling price for each distinct good is generally determined by directly observable data.  

The performance obligations in our contracts are generally satisfied within one year. As such, we have not disclosed the transaction price allocated to remaining performance obligations for labeling and storage as of March 31, 2021 which is included in deferred revenue on the consolidated balance sheet.

Significant Payment Terms

Our customer contracts identify the product, quantity, price, payment and final delivery terms.  Payment terms usually include early pay discounts.  We grant payment terms consistent with industry standards. Although some payment terms may be more extended, no terms beyond one year are granted at contract inception.  As a result, we do not adjust the promised amount of consideration for the effects of a significant financing component because the period between our transfer of a promised good or service to a customer and the customer’s payment for that good or service will be generally 30 days or less.  

Shipping

All shipping and handling costs associated with outbound freight are accounted for as fulfillment costs and are included in the cost of sales; this includes shipping and handling costs after control over a product has transferred to a customer.

Variable Consideration

In addition to fixed contract consideration, some contracts include some form of variable consideration.  Trade promotions are an important component of the sales and marketing of the Company’s branded products, and are critical to the support of the business. Trade promotion costs, which are recorded as a reduction of sales, include amounts paid to retailers for shelf space, to obtain favorable display positions and to offer temporary price reductions for the sale of our products to consumers. Accruals for trade promotions are recorded primarily at the time of sale to the retailer based on expected levels of performance. Settlement of these liabilities typically occurs in subsequent periods primarily through an authorized process for deductions taken by a retailer from amounts otherwise due to the Company. As a result, the ultimate cost of a trade promotion program is dependent on the relative success of the events and the actions and level of deductions taken by retailers. Final determination of the permissible deductions may take extended periods of time.

Contract balances

The contract asset balances are $0.9 million and $7.6 million as of March 31, 2021 and 2020, respectively. The contract liability balance is immaterial.  The Company does not have significant deferred revenue or unbilled receivable balances because of transactions with customers.  The Company does have deferred revenue for prepaid case and labeling and storage services which have been collected from bill and hold sales.

Contract Costs

We have identified certain incremental costs to obtain a contract, primarily sales commissions, requiring capitalization under the new standard.  The Company continues to expense these costs as incurred because the amortization period for the costs would have been one year or less.  The Company does not incur significant fulfillment costs requiring capitalization.

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Note 5 - Revolving Credit Facility

12 Months Ended

Mar. 31, 2021

Notes to Financial Statements

Debt Disclosure [Text Block]

5. Revolving Credit Facility

On March 24, 2021, the Company entered into a Fourth Amended and Restated Loan and Security Agreement that provides for a senior revolving credit facility of up to $400.0 million that is seasonally adjusted (the “Revolver”). Maximum borrowings under the Revolver total $300.0 million from April through July and $400.0 million from August through March. The Revolver balance as of March 31, 2021 was $1.0 million and is included in Long-Term Debt in the accompanying Consolidated Balance Sheet due to the Revolver’s March 24, 2026 maturity. In order to maintain availability of funds under the facility, the Company pays a commitment fee on the unused portion of the Revolver. The Revolver is secured by substantially all of the Company’s accounts receivable and inventories and contains borrowing base requirements as well as a financial covenant, if certain circumstances apply. The Company utilizes its Revolver for general corporate purposes, including seasonal working capital needs, to pay debt principal and interest obligations, and to fund capital expenditures and acquisitions. Seasonal working capital needs are affected by the growing cycles of the vegetables the Company packages. The majority of vegetable inventories are produced during the months of June through November and are then sold over the following year. Payment terms for vegetable produce are generally three months but can vary from a few days to seven months. Accordingly, the Company’s need to draw on the Revolver may fluctuate significantly throughout the year.

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Note 6 - Long-term Debt

12 Months Ended

Mar. 31, 2021

Notes to Financial Statements

Long-term Debt [Text Block]

6. Long-Term Debt

	2021		2020
	(In thousands)
Revolving credit facility, 1.38% and 2.59%, due through 2026	$	1,000	$	106,924
Farm Credit term loan, 3.30% and 4.54%, due 2026		96,869		99,941
Bluegrass tax exempt bonds, 0% and 3.01%		-		10,000
Economic development note, 2.00%, due through 2022		500		500
Other		216		216
Total		98,585		217,581
Less current portion		4,500		500
Long-term debt	$	94,085	$	217,081

See Note 5, Revolving Credit Facility, for discussion of the Revolver.

The Company’s debt agreements, including the Revolver and term loan, contain customary affirmative and negative covenants that restrict, with specified exceptions, the Company’s ability to incur additional indebtedness, incur liens, pay dividends on the Company’s capital stock, make other restricted payments, including investments, transfer all or substantially all of the Company’s assets, enter into consolidations or mergers, and enter into transactions with affiliates. The Company’s debt agreements also require the Company to meet certain financial covenants including a minimum EBITDA and minimum tangible net worth. The Revolver contains borrowing base requirements related to accounts receivable and inventories and also requires the Company to meet a financial covenant related to a minimum fixed charge coverage ratio if (a) an event of default has occurred or (b) availability on the Revolver is less than the greater of (i) 10% of the commitments then in effect and (ii) $25,000,000. The most restrictive financial covenant in the debt agreements is the minimum EBITDA within the Farm Credit term loan which for fiscal year end 2021 will be greater than $50 million. The Company computes its financial covenants as if the Company were on the FIFO method of inventory accounting. The Company has met all such financial covenants as of March 31, 2021.

The Company's debt agreements limit the payment of dividends and other distributions. There is an annual total distribution limitation of $50,000, less aggregate annual dividend payments totaling $23,000 that the Company presently pays on two outstanding classes of preferred stock.

On May 28, 2020 the Company entered into an Amended and Restated Loan and Guaranty Agreement with Farm Credit East, ACA that provides for a $100.0 million unsecured term loan. The amended and restated agreement with Farm Credit East has a maturity date of June 1, 2025 and converted the term loan to a fixed interest rate rather than a variable interest rate in addition to requiring quarterly principal payments of $1.0 million, which commenced during fiscal 2021. The Company incurred financing costs totaling $0.2 million which have been classified as a discount to the debt. This agreement contains certain covenants, including maintaining a minimum EBITDA and minimum tangible net worth.

The carrying value of assets pledged for secured debt, including the Revolver, is $508.2 million.

Debt repayment requirements for the next five fiscal years are (in thousands):

Years ending March 31:
2022	$	4,500
2023		4,000
2024		4,000
2025		4,000
2026		81,869
Thereafter		216
Total	$	98,585

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Note 7 - Leases

12 Months Ended

Mar. 31, 2021

Notes to Financial Statements

Lessee, Operating and Finance Leases [Text Block]

7. Leases

The Company determines if an arrangement is a lease at inception of the agreement. Operating leases are included in right-of-use operating assets, current portion of long-term debt and lease obligations, and noncurrent operating lease obligations in the Company’s Consolidated Balance Sheets. Lease assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Lease assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. If the lease does not provide an implicit rate, the Company uses an incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The right-of-use operating lease assets also include in its calculation any prepaid lease payments made and excludes any lease incentives received from the arrangement. The Company’s lease terms may include options to extend or terminate the lease, and the impact of these options are included in the lease liability and lease asset calculations when the exercise of the option is at the Company’s sole discretion and it is reasonably certain that the Company will exercise that option. The Company will not separate lease and nonlease components for its leases when it is impractical to separate the two, such as leases with variable payment arrangements. Leases with an initial term of 12 months or less are not recorded on the balance sheet.

The Company has operating leases for land, machinery and equipment. The Company also has finance leases for machinery and equipment. The commencement date used for the calculation of the lease obligation is the latter of April 1, 2019 or the lease start date. Certain of the leases have options to extend the life of the lease, which are included in the liability calculation when the option is at the sole discretion of the Company and it is reasonably certain that the Company will exercise the option. In addition, the Company has certain leases that have variable payments based solely on output or usage of the leased asset. These variable operating lease assets are excluded from the Company’s balance sheet presentation and expensed as incurred. Leases with an initial term of 12 months or less are not material.

Upon adoption of ASU 2016-02, the Company determined its right-of-use assets related to the operating leases for its plant equipment in Sunnyside, Washington were partially impaired and therefore were reduced with a corresponding charge to retained earnings of $2,019,000 (which is net of tax). The estimated lives of these assets were shortened to align with the closure of the facility.

Lease expense for lease payments is recognized on a straight-line basis over the lease term. The components of lease expense were as follows (In thousands):

	Year Ended		Year Ended
	March 31, 2021		March 31, 2020
Lease cost:
Amortization of right of use asset	$	4,746	$	4,335
Interest on lease liabilities		1,102		1,353
Finance lease cost		5,848		5,688
Operating lease cost		23,736		30,190
Total lease cost	$	29,584	$	35,878
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from finance leases	$	1,102	$	1,353
Operating cash flows from operating leases		23,864		29,845
Financing cash flows from finance leases		6,321		6,437
Total	$	31,287	$	37,635
Right-of-use assets obtained in exchange for new finance lease liabilities	$	1,740	$	4,424
Right-of-use assets obtained in exchange for new operating lease liabilities	$	2,009	$	6,419
Weighted-average lease term (years):
Financing leases		4.5		5.3
Operating leases		3.5		3.8
Weighted-average discount rate (percentage):
Financing leases		4.1		4.1
Operating leases		4.4		4.5

Undiscounted future lease payments under non-cancelable operating leases and financial leases, along with a reconciliation of undiscounted cash flows to operating and financing lease liabilities, respectively, as of March 31, 2021 were as follows (in thousands):

Years ending March 31:	Operating		Financing
2022	$	18,606	$	7,665
2023		14,042		7,665
2024		7,118		6,096
2025		3,572		2,713
2026		1,729		1,625
2027-2032		3,151		2,786
Total minimum payment required	$	48,218	$	28,550
Less interest		3,402		2,540
Present value of minimum lease payments		44,816		26,010
Amount due within one year		17,047		6,778
Long-term lease obligation	$	27,769	$	19,232

Undiscounted future lease payments under non-cancelable operating leases and financial leases, along with a reconciliation of undiscounted cash flows to operating and financing lease liabilities, respectively, as of March 31, 2020 were as follows (in thousands):

Years ending March 31:	Operating		Financing
2021	$	23,896	$	7,313
2022		18,820		7,313
2023		13,022		7,313
2024		6,510		5,786
2025		3,023		2,395
2026-2031		4,597		3,995
Total minimum payment required	$	69,868	$	34,115
Less interest		5,559		3,524
Present value of minimum lease payments		64,309		30,591
Amount due within one year		21,549		6,225
Long-term lease obligation	$	42,760	$	24,366

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Note 8 - Income Taxes

12 Months Ended

Mar. 31, 2021

Notes to Financial Statements

Income Tax Disclosure [Text Block]

8. Income Taxes

The Company files a consolidated federal and various state income tax returns. The provision for income taxes is as follows (in thousands):

	2021		2020
	(In thousands)
Current:
Federal	$	13,121	$	(1,912	)
State		4,145		1,187
Total		17,266		(725	)
Deferred:
Federal	$	13,486	$	14,251
State		3,164		1,278
Total		16,650		15,529
Total income taxes (1)	$	33,916	$	14,804

(1) Income tax expense (benefit) included in the financial statements is comprised of $14.4 million from continuing operations and $0.4 million from discontinued operations in 2020. There was no income tax effect in 2021 as a result of discontinued operations.

A reconciliation for continuing operations of the expected U.S. statutory rate to the effective rate follows:

	2021			2020
Computed (expected tax rate)		21.0	%		21.0	%
State income taxes (net of federal tax benefit)		3.1			2.8
Federal credits		(0.3	)		(0.8	)
Addition/(reduction) to uncertain tax positions		(0.1	)		0.3
Other permanent differences not deductible		-			0.2
Change in valuation allowance		0.2			0.7
Tax law change		-			(2.8	)
Federal NOL carryback rate difference		(2.8	)		-
Other		0.1			0.6
Effective income tax rate		21.2	%		22.0	%

The effective tax rate was 21.2% and 22.0% in 2021 and 2020, respectively. On March 27, 2020, The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) was enacted. The CARES Act, among other things, allows NOLs incurred in taxable years beginning after December 31, 2017 and before January 01, 2021 to be carried back to each of the five preceding taxable years to generate a refund of previously paid income taxes. The Company was able to carryback the NOL generated in the 2019 tax year at a 21% corporate tax rate to the 2015 tax year at a 35% corporate tax rate. The tax rate difference realized for the NOL carryback decreased the Company’s effective tax rate by 2.8% in 2021 as compared to the prior year. The 2020 overall effective tax rate included a 2.8% rate benefit that was realized during 2020 as a result of tax law changes. This rate benefit due to a tax law change did not impact 2021. The NOL carrybacks resulted in a benefit of $4.5 million and $1.7 million in 2021 and 2020, respectively.

The following is a summary of the significant components of the Company's deferred income tax assets and liabilities as of March 31:

	2021			2020
	(In thousands)
Deferred income tax assets:
Future tax credits	$	5,884		$	5,581
Inventory valuation		2,204			163
Restructuring reserve		-			220
Employee benefits		2,063			2,219
Insurance		685			616
Other comprehensive loss		6,511			26,562
Interest		4			24
Prepaid revenue		463			565
Other		815			186
Equity investment basis difference		1,589			-
Net operating loss and other tax attribute carryovers		85			2,233
Total assets		20,303			38,369
Deferred income tax liabilities:
Property basis and depreciation difference		17,975			12,664
Intangibles		33			208
Equity investment basis difference		-			1,239
Right of use assets		4,371			4,373
Pension		21,556			7,540
Total liabilities		43,935			26,024
Valuation allowance - non-current		4,674			4,473
Net deferred income tax (liability)/asset	$	(28,306	)	$	7,872

Net non-current deferred income tax liabilities of $28.3 million as of March 31, 2021 and net non-current deferred income tax assets of $7.9 million as of March 31, 2020 are recognized in the Consolidated Balance Sheets.

The Company has State tax credit carryforwards amounting to $1.5 million (California, net of Federal impact), $2.1 million (New York, net of Federal impact), and $2.3 million (Wisconsin, net of Federal impact), which are available to reduce future taxes payable in each respective state through 2036 (Wisconsin), through 2036 (New York), and through 2028 (California). The Company has performed the required assessment regarding the realization of deferred tax assets and at March 31, 2021, the Company has recorded a valuation allowance amounting to $4.7 million, which relates primarily to tax credit carryforwards which management has concluded it is more likely than not they will not be realized in the ordinary course of operations. Although realization is not assured, management has concluded that it is more likely than not that the deferred tax assets for which a valuation allowance was determined to be unnecessary will be realized in the ordinary course of operations. The amount of net deferred tax assets considered realizable, however, could be reduced if actual future income or income taxes rates are lower than estimated or if there are differences in the timing or amount of future reversals of existing taxable or deductible temporary differences.

Current rules on the accounting for uncertainty on income taxes prescribe a minimum recognition threshold for a tax position taken or expected to be taken in a tax return that is required to be met before being recognized in the financial statements. Those rules also provide guidance on derecognition, measurement, classification, interest and penalties, accounting in interim periods, disclosure and transition. The Company classifies the liability for uncertain tax positions in other accrued expenses or other long-term liabilities depending on their expected settlement. The change in the liability for the years ended March 31, 2021 and 2020 consists of the following:

	2021			2020
	(In thousands)
Beginning balance	$	2,065		$	396
Tax positions related to current year:
Additions		279			1,123
Tax positions related to prior years:
Additions		34			569
Reductions		(1,626	)		(16	)
Lapses in statues of limitations		(376	)		(7	)
Balance as of March 31,	$	376		$	2,065

As of March 31, 2021 and 2020 unrecognized tax benefits include $0.0 million and $1.6 million of tax positions that are highly certain but for which there is uncertainty about the timing. Due to the new regulations issued in 2021 the position is no longer uncertain and the 2021 decrease is the reversal of the tax liability related to the UTB created in prior years. Because of the impact of deferred tax accounting, other than interest and penalties, the disallowance of these positions would not impact the annual effective tax rate but would accelerate the payment of cash to the tax authority to an earlier period.

The Company recognizes interest and penalties accrued on unrecognized tax benefits as well as interest received from favorable settlements within income tax expense. During the years ended March 31, 2021 and 2020, the Company recognized approximately $0.2 million decrease and $0.2 million increase, respectively, in interest and penalties. As of March 31, 2021 and 2020, the Company had approximately $0.0 million and $0.2 million of interest and penalties accrued, respectively, associated with unrecognized tax benefits.

Although management believes that an adequate position has been made for uncertain tax positions, there is the possibility that the ultimate resolution could have an adverse effect on the earnings of the Company. Conversely, if resolved favorably in the future, the related provisions would be reduced, thus having a positive impact on earnings. During 2021 the statute of limitations lapsed on one uncertain tax position. The lapse results in the position no longer being uncertain. As a result of the statute of limitations lapse and in accordance with its accounting policies, the Company recorded a decrease to the liability and a decrease to tax expense of $0.4 million.

The federal income tax returns for years after March 31, 2015 are open because we claimed a refund on the 3/31/16 taxable income. The tax year ending March 31, 2017 is currently under audit with the IRS.

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Note 9 - Stockholders' Equity

12 Months Ended

Mar. 31, 2021

Notes to Financial Statements

Stockholders' Equity Note Disclosure [Text Block]

9. Stockholders’ Equity

Preferred Stock — The Company has authorized three classes of preferred stock consisting of 200,000 shares of Six Percent (6%) Voting Cumulative Preferred Stock, par value $0.25 (“6% Preferred”); 30,000 shares of Preferred Stock Without Par Value to be issued in series by the Board of Directors, none of which are currently designated or outstanding; and 8,200,000 shares of Preferred Stock with $.025 par value, Class A, to be issued in series by the Board of Directors (“Class A Preferred”). The Board of Directors has designated four series of Class A Preferred including 10% Cumulative Convertible Voting Preferred Stock—Series A (“Series A Preferred”); 10% Cumulative Convertible Voting Preferred Stock—Series B (“Series B Preferred”); Convertible Participating Preferred Stock; and Convertible Participating Preferred Stock, Series 2003.

The Convertible Participating Preferred Stock and Convertible Participating Preferred Stock, Series 2003 are convertible at the holders’ option on a one-for-one basis into shares of Class A Common Stock, subject to antidilution adjustments. These series of preferred stock have the right to receive dividends and distributions at a rate equal to the amount of any dividends and distributions declared or made on the Class A Common Stock. No dividends were declared or paid on this preferred stock in fiscal 2021 or 2020. In addition, these series of preferred stock have certain distribution rights upon liquidation. Upon conversion, shares of these series of preferred stock become authorized but unissued shares of Class A Preferred and may be reissued as part of another series of Class A Preferred. As of March 31, 2021, the Company has an aggregate of 6,765,645 shares of non-designated Class A Preferred authorized for issuance.

The Convertible Participating Preferred Stock has a liquidation preference of $12 per share and a stated value of $11.931 per share. There were 33,855 shares outstanding as of March 31, 2021 and 1,500 conversions during the year. The Convertible Participating Preferred Stock, Series 2003 was issued as partial consideration of the purchase price in the Chiquita Processed Foods acquisition. The 967,742 shares issued in that 2003 acquisition were valued at $16.60 per share which represented the then market value of the Class A Common Stock into which the preferred shares were immediately convertible. This series has a liquidation preference of $15.50 per share and has 500 shares outstanding as of March 31, 2021.

There are 407,240 shares of Series A Preferred outstanding as of March 31, 2021which are convertible into one share of Class A Common Stock and one share of Class B Common stock for every 20 shares of Series A Preferred. There are 400,000 shares of Series B Preferred outstanding as of March 31, 2021 which are convertible into one share of Class A Common Stock and one share of Class B Common Stock for every 30 shares of Series B preferred. There are 200,000 shares of 6% Preferred outstanding as of March 31, 2021 which are callable at their par value at any time at the option of the Company. The Company paid dividends of $20,000 on the Series A and Series B Preferred and $3,000 on the 6% Preferred during each of fiscal 2021 and 2020.

Common Stock — The Class A Common Stock and the Class B Common Stock have substantially identical rights with respect to any dividends or distributions of cash or property declared on shares of common stock, and rank equally as to the right to receive proceeds on liquidation or dissolution of the Company after payment of the Company’s indebtedness and liquidation right to the holders of preferred shares. However, holders of Class B Common Stock retain a full vote per share, whereas the holders of Class A Common Stock have voting rights of 1/20th of one vote per share on all matters as to which shareholders of the Company are entitled to vote. During 2021, there were no shares of Class B Common Stock issued in lieu of cash compensation under the Company's Profit Sharing Bonus Plan.

Unissued shares of common stock reserved for conversion privileges of designated non-participating preferred stock were 33,695 of both Class A and Class B as of March 31, 2021 and 2020. Additionally, there were 34,355 and 35,855 shares of Class A reserved for conversion of the Participating Preferred Stock as of March 31, 2021 and 2020, respectively.

Treasury Stock — During 2021 the Company repurchased $4.4 million, or 89,731 shares of its Class A Common Stock and none of its Class B Common Stock. As of March 31, 2021, there is a total of $91.2 million, or 3,103,547 shares, of repurchased stock. These shares are not considered outstanding. The Company contributed $1.5 million or 28,276 treasury shares for the 401(k) match in 2021 as described in Note 10, Retirement Plans.

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Note 10 - Retirement Plans

12 Months Ended

Mar. 31, 2021

Notes to Financial Statements

Retirement Benefits [Text Block]

10. Retirement Plans

The Company has a noncontributory defined benefit pension plan (the “Plan”) covering most employees who meet certain age-entry requirements and work a stated minimum number of hours per year. The Plan was amended to freeze accruals to new hires and rehires effective January 1, 2020. Annual contributions made to the Plan are sufficient to satisfy legal funding requirements.

The following tables provide a reconciliation of the changes in the Plan’s benefit obligation and fair value of plan assets over the two-year period ended March 31, 2021 and a statement of the funded (unfunded) status as of March 31, 2021 and 2020:

	2021			2020
	(In thousands)
Change in Benefit Obligation
Benefit obligation at beginning of year	$	278,227		$	250,461
Service cost		9,326			9,244
Interest cost		9,266			9,064
Liability gain due to curtailment		-			(1,114	)
Actuarial loss		17,712			20,146
Benefit payments and expenses		(28,468	)		(9,574	)
Benefit obligation at end of year	$	286,063		$	278,227
Change in Plan Assets
Fair value of plan assets at beginning of year	$	202,485		$	233,112
Actual return on plan assets		103,166			(46,325	)
Employer contributions		73,000			26,000
Benefit payments and expenses		(29,737	)		(10,302	)
Fair value of plan assets at end of year	$	348,914		$	202,485
Funded (Unfunded) Status	$	62,851		$	(75,742	)

The funded status increased by $138.6 million during 2021 reflecting the actual fair value of plan assets and the projected benefit obligation as of March 31, 2021. This funded status increase was recognized via the actual gain on plan assets and the decrease in accumulated other comprehensive loss of $59.8 million after the income tax expense of $19.9 million. During fiscal years 2021 and 2020, the actuarial loss in the pension plan’s projected benefit obligation was primarily driven by data revisions resulting in demographic losses as well as a decline in discount rates. Additionally, the Society of Actuaries released an updated mortality table for fiscal year 2020 and an updated mortality projection scale for both fiscal years 2020 and 2021 which partially offset the actuarial loss.

Plan assets increased from $202.5 million as of March 31, 2020 to $348.9 million as of March 31, 2021 due primarily to a gain on plan assets of $103.2 million and a $73.0 million contribution by the Company.

	2021			2020
	(In thousands)
Amounts Recognized in Accumulated Other Comprehensive Pre-Tax Loss
Prior service cost	$	(258	)	$	(349	)
Net loss		(26,265	)		(105,866	)
Accumulated other comprehensive pre-tax loss	$	(26,523	)	$	(106,215	)

	Pension and
	post retirement plan
	adjustments, net
	of tax
	(In thousands)
Accumulated Other Comprehensive Loss
Balance at March 31, 2020	$	(79,220	)
Other comprehensive income		60,153
Balance at March 31, 2021	$	(19,067	)

The following table provides the components of net periodic benefit cost  for the Plan for fiscal years 2021 and 2020: 

	2021			2020
	(In thousands)
Service cost including administration	$	10,627		$	9,935
Interest cost		9,266			9,064
Expected return on plan assets		(15,804	)		(16,746	)
Amortization of net loss		9,919			579
Prior service cost		91			120
Net periodic benefit cost	$	14,099		$	2,952
Settlement/curtailment expense		-			118
Net periodic benefit cost with curtailment	$	14,099		$	3,070

The Company utilizes a full yield curve approach in the estimation of net periodic benefit cost components by applying the specific spot rates along the yield curve used in determination of the benefit obligation to their underlying projected cash flows.

Prior service costs are amortized on a straight-line basis over the average remaining service period of active participants. Gains and losses in excess of 10% of the greater of the benefit obligation and the market-related value of assets are amortized over the average remaining service period of active participants.

The assumptions used to measure the Company’s benefit obligation and pension expense are shown in the following table:

	2021			2020
Weighted Average Assumptions for Balance Sheet Liability at End of Year:
Discount rate - projected benefit obligation		3.43	%		3.69	%
Rate of compensation increase		3.00	%		3.00	%
Mortality table		Pri-2012 Blue Collar Generational Table Improvement Scale MP-2020			Pri-2012 Blue Collar Generational Table Improvement Scale MP-2019
Weighted Average Assumptions for Benefit Cost at Beginning of Year:
Discount rate - benefit obligations		3.69	%		4.14	%
Discount rate - interest cost		3.30	%		3.74	%
Discount rate - service cost		3.87	%		4.34	%
Discount rate - interest on service cost		3.43	%		3.69	%
Expected return on plan assets		7.25	%		7.25	%
Rate of compensation increase		3.00	%		3.00	%

The Company's plan assets consist of the following:

	Target			Percentage of Plan
	Allocation			Assets at March 31,
	2022			2021			2020
Plan Assets
Equity securities		50	%		48	%		97	%
Debt securities		50	%		50	%		-
Real estate		-			-			-
Cash		-			2	%		3	%
Total		100	%		100	%		100	%

All securities, which are valued at fair market value, are considered to be level 1, due to their public active market.

Expected Return on Plan Assets

For fiscal 2021, the expected long term rate of return on Plan assets was 7.25%. The Company expected 7.25% to fall within the 35 to 65 percentile range of returns on investment portfolios with asset diversification similar to that of the Plan's target asset allocation for fiscal 2021. The Company will review the long term rate of return on Plan assets for fiscal 2022 in light of changes that were made to the asset allocation in March of 2021.

Investment Policy and Strategy

Historically, the Company maintained an investment policy designed to achieve a long-term rate of return by investing in a diversified portfolio of public company equities seeking to provide long-term growth consistent with the performance of relevant market indices, as well as maintain an adequate level of liquidity for pension distributions as they fall due. The Company is currently in the process of reviewing its investment policy and shifting towards more liability-driven investments to reduce the ongoing volatility of the Plan’s funded status. As an initial step, in March 2021, the Company adjusted the allocation of the Plan assets by moving 50% of the assets into liability-hedging investment grade fixed income investments, while maintaining 50% of the assets in diversified public company equities. Additionally, in FY 2022, the Company intends to implement a glide path approach that will adjust the asset allocation as the Plan’s funded status changes, with more assets being allocated to fixed income investments as the funded status improves to continue to reduce the Plan’s funded status volatility.

Cash Flows

Expected contributions for fiscal year ending March 31, 2022 (in thousands):

Expected Employer Contributions	$	-
Expected Employee Contributions	$	-

Estimated future benefit payments reflecting expected future service for the fiscal years ending March 31 (in thousands):

2022	$	11,178
2023		11,290
2024		11,913
2025		12,640
2026		13,342
2027-2031		75,496

401(k) Plans

The Company also has employees’ savings 401(k) plans covering all employees who meet certain age-entry requirements and work a stated minimum number of hours per year. Participants may make contributions up to the legal limit. The Company’s matching contributions are discretionary. Costs charged to operations for the Company’s matching contributions amounted to $1.6 million and $0.4 million in fiscal 2021 and 2020, respectively. In fiscal 2021 and 2020, the matching contribution was entirely treasury stock. This stock portion of the matching contribution is valued at current market value while the treasury stock is valued at cost.

Unfunded Deferred Compensation Plan

The Company sponsors an unfunded nonqualified deferred compensation plan to permit certain eligible employees to defer receipt of a portion of their compensation to a future date. This plan was designed to compensate the plan participants for any loss of company contributions under the 401(k) plans. The total cost for this plan was not significant in fiscal 2021 or 2020.

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Note 11 - Fair Value of Financial Instruments

12 Months Ended

Mar. 31, 2021

Notes to Financial Statements

Fair Value Disclosures [Text Block]

11. Fair Value of Financial Instruments

The carrying amount and estimated fair values of the Company's debt are summarized as follows (in thousands):

	2021				2020
	Carrying		Estimated		Carrying		Estimated
	Amount		Fair Value		Amount		Fair Value
	(in thousands)
Long-term debt, including current portion	$	98,585	$	97,226	$	217,581	$	217,559

The estimated fair value for long-term debt is determined by the quoted market prices for similar debt (comparable to the Company’s financial strength) or current rates offered to the Company for debt with the same maturities which is Level 2 from the fair value hierarchy. Since quoted prices for identical instruments in active markets are not available (Level 1), the Company makes use of observable market based inputs to calculate fair value, which is Level 2.

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Note 12 - Inventories

12 Months Ended

Mar. 31, 2021

Notes to Financial Statements

Inventory Disclosure [Text Block]

12. Inventories

Effective December 30, 2007, the Company changed its inventory valuation method from the lower of cost, determined under the FIFO method, or market to the lower of cost, determined under the LIFO method, or market. In the high inflation environment that the Company was experiencing, the Company believed that the LIFO inventory method was preferable over the FIFO method because it better compares the cost of current production to current revenue. The effect of LIFO was to increase continuing net earnings by $11.7 million and $12.8 million in 2021 and 2020, respectively, compared to what would have been reported using the FIFO inventory method. The increase in earnings per share was $1.29 ($1.28 diluted) and $1.38 ($1.37 diluted) in 2021 and 2020, respectively. There was a LIFO liquidation of $6.6 million in 2020, which eliminated all but the base LIFO layer as of March 31, 2020. There were no LIFO liquidations in 2021 as only the base LIFO layer remains. The inventories by category and the impact of using the LIFO method are shown in the following table (in thousands):

	2021		2020
Finished products	$	317,654	$	351,251
In process		25,175		31,173
Raw materials and supplies		128,987		173,474
		471,816		555,898
Less excess of FIFO cost over LIFO cost		128,672		144,267
Total inventories	$	343,144	$	411,631

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Note 13 - Other Operating Income and Expense

12 Months Ended

Mar. 31, 2021

Notes to Financial Statements

Property, Plant and Equipment Disclosure [Text Block]

13. Other Operating Income and Expense

Other operating income in 2021 includes a gain on the sale of the prepared food business of $34.8 million. Additionally the company recorded a loss of $0.8 million on the disposal of equipment from a sold Northwest plant, a loss on the sale of unused fixed assets of $0.4 million, a loss of $3.2 million on the disposition of equipment that was previously held for sale, and a charge of $0.2 for severance. The company also recorded a charge of $1.2 million for a supplemental early retirement plan.

Other operating income in 2020 includes a gain on the partial sale of a plant in the Midwest of $3.3 million and a gain on the sale of a plant in the Northwest of $8.2 million. The Company also recorded a gain on the sale of unused fixed assets of $1.2 million.

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Note 14 - Segment Information

12 Months Ended

Mar. 31, 2021

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

14. Segment Information

The Company manages its business on the basis of three reportable segments — the primary segment is the packaging and sale of fruits and vegetables, secondarily, the packaging and sale of prepared food products, third, the sale of snack products and finally, other products. The Company markets its product almost entirely in the United States. Export sales represented 6.5% of total sales in both 2021 and 2020. “Other” in the table below represents activity related to can sales, trucking, seed sales, and flight operations.

	Fruit and		Prepared
	Vegetable		Foods		Snack		Other			Total
	(In thousands)
2021:
Net sales	$	1,363,263	$	71,866	$	10,999	$	21,516		$	1,467,644
Operating income		175,810		1,967		705		2,585			181,067
Identifiable assets		853,602		51,803		2,054		773			908,232
Capital expenditures		67,963		1,451		508		1,528			71,450
Depreciation and amortization		29,534		2,299		194		349			32,376
2020:
Net sales	$	1,202,528	$	105,044	$	11,475	$	16,722		$	1,335,769
Operating income (loss)		65,921		3,774		837		(8	)		70,524
Identifiable assets		853,438		51,803		2,054		773			908,068
Capital expenditures		63,543		2,122		19		756			66,440
Depreciation and amortization		26,486		3,564		207		676			30,933

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Note 15 - Legal Proceedings and Other Contingencies

12 Months Ended

Mar. 31, 2021

Notes to Financial Statements

Commitments and Contingencies Disclosure [Text Block]

15. Legal Proceedings and Other Contingencies

In the ordinary course of its business, the Company is made a party to certain legal proceedings seeking monetary damages, including proceedings involving product liability claims, workers’ compensation along with other employee claims, tort and other general liability claims, for which it carries insurance, as well as patent infringement and related litigation. The Company is in a highly regulated industry and is also periodically involved in government actions for regulatory violations and other matters surrounding the manufacturing of its products, including, but not limited to, environmental, employee, and product safety issues. While it is not feasible to predict or determine the ultimate outcome of these matters, the Company does not believe that an adverse decision in any of these legal proceedings would have a material adverse impact on its financial position, results of operations, or cash flows.

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Note 16 - Plant Restructuring

12 Months Ended

Mar. 31, 2021

Notes to Financial Statements

Restructuring and Related Activities Disclosure [Text Block]

16. Plant Restructuring

During 2021, the Company recorded a restructuring charge of $0.2 related to closed plants mostly for severance.

During 2020, the Company recorded a restructuring charge of $7.0 million related to the closing of plants in the Midwest and Northwest of which $5.3 million was for accelerated amortization of right-of-use operating lease assets, $2.4 million was mostly related to equipment moves and $1.2 million was related to severance. The Company also recorded a credit of $1.9 million for the reduced lease liability of previously impaired leases.

These charges are included under Plant Restructuring Charge in the Consolidated Statements of Net Earnings. Severance Payable and Other Costs Payable are included in Other Accrued Expenses on the Consolidated Balance Sheets.

The following table summarizes the restructuring and related asset impairment charges recorded and the accruals established during 2021 and 2020 (in thousands):

				Other
	Severance			Cost
	Payable			Payable			Total
Balance March 31, 2019	$	225		$	1			226
Charge to expense		1,229			5,817			7,046
Cash payments/write offs		(1,252	)		(5,818	)		(7,070	)
Balance March 31, 2020		202			-			202
Charge to expense		227			(45	)		182
Cash payments/write offs		(429	)		45			(384	)
Balance March 31, 2021	$	-		$	-		$	-

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Note 17 - Related Party Transactions

12 Months Ended

Mar. 31, 2021

Notes to Financial Statements

Related Party Transactions Disclosure [Text Block]

17. Related Party Transactions

During fiscal 2021 and 2020, less than 1% of vegetables supplied to the Company are grown by a Director of Seneca Foods Corporation. The Director supplied the Company approximately $2.2 million and $2.3 million, pursuant to a raw vegetable grower contract in fiscal 2021 and 2020, respectively.  The Chairman of the Audit Committee reviewed the relationship and determined that the contract was negotiated at arm's length and on no more favorable terms than to other growers in the marketplace.

During the years ended March 31, 2021 and 2020, the Company made charitable contributions to a related party foundation in the amount of approximately $1.0 million and $0.3 million, respectively. The Foundation is a nonprofit entity that supports charitable activities by making grants to unrelated organizations or institutions. This Foundation is managed by current employees of the Company. 

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Schedule II - Valuation and Qualifying Accounts

12 Months Ended

Mar. 31, 2021

Notes to Financial Statements

SEC Schedule, 12-09, Schedule of Valuation and Qualifying Accounts Disclosure [Text Block]

Schedule II

VALUATION AND QUALIFYING ACCOUNTS

(In thousands)

	Balance at		Charged/		Charged to		Deductions			Balance
	beginning		(credited)		other		from			at end
	of period		to income		accounts		reserve			of period
Year-ended March 31, 2021:
Allowance for doubtful accounts	$	1,598	$	(1,304)	$	_	$	(45)	(a)	$	339
Income tax valuation allowance	$	4,473	$	201	$	-	$	-		$	4,674
Year-ended March 31, 2020:
Allowance for doubtful accounts	$	57	$	1,627	$	-	$	86	(a)	$	1,598
Income tax valuation allowance	$	3,988	$	485	$	-	$	-		$	4,473

(a) Accounts written off, net of recoveries.

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Significant Accounting Policies (Policies)

12 Months Ended

Mar. 31, 2021

Accounting Policies [Abstract]

Consolidation, Policy [Policy Text Block]

Principles of Consolidation — The consolidated financial statements include the accounts for the Parent Company and all of its wholly-owned subsidiaries after elimination of intercompany transactions, profits, and balances.

Revenue from Contract with Customer [Policy Text Block]

Revenue Recognition — Revenue recognition is completed primarily at a point in time basis when product control is transferred to the customer.  In general, control transfers to the customer when the product is shipped or delivered to the customer based upon applicable shipping terms, as the customer can direct the use and obtain substantially all of the remaining benefits from the asset at this point in time.  See Note 4, Revenue Recognition, for further discussion of the policy.

Trade promotions are an important component of the sales and marketing of the Company’s branded products, and are critical to the support of the business. Trade promotion costs, which are recorded as a reduction of sales, include amounts paid to retailers for shelf space, to obtain favorable display positions and to offer temporary price reductions for the sale of our products to consumers. Accruals for trade promotions are recorded primarily at the time of sale to the retailer based on expected levels of performance. Settlement of these liabilities typically occurs in subsequent periods primarily through an authorized process for deductions taken by a retailer from amounts otherwise due to the Company. As a result, the ultimate cost of a trade promotion program is dependent on the relative success of the events and the actions and level of deductions taken by retailers. Final determination of the permissible deductions may take extended periods of time.

Concentration Risk, Credit Risk, Policy [Policy Text Block]

Concentration of Credit Risk — Financial instruments that potentially subject the Company to credit risk consist of trade receivables and interest-bearing investments. Wholesale and retail food distributors comprise a significant portion of the trade receivables; collateral is generally not required. A relatively limited number of customers account for a large percentage of the Company’s total net sales. The top ten customers represented approximately 50%, and 49% of net sales for 2021 and 2020, respectively. The Company closely monitors the credit risk associated with its customers. The Company places substantially all of its interest-bearing investments with financial institutions and monitors credit exposure. Cash and short-term investments in certain accounts exceed the federal insured limit; however, the Company has not experienced any losses in such accounts.

Cash and Cash Equivalents, Policy [Policy Text Block]

Cash Equivalents — The Company considers all highly liquid instruments purchased with an original maturity of three months or less as cash equivalents. As of March 31, 2021, the Company had $47.4 million of cash and cash equivalents invested in a money market fund that invests in high-quality, short-term obligations that present minimal credit risk including U.S. government securities, demand notes of U.S. and foreign corporations, certificates of deposit and time deposits, and asset backed securities. There were no such investments as of March 31, 2020.

Fair Value of Financial Instruments, Policy [Policy Text Block]

Fair Value of Financial Instruments — The carrying values of cash and cash equivalents (Level 1), accounts receivable, short-term debt (Level 2) and accounts payable approximate fair value because of the immediate or short-term maturity of these financial instruments. See Note 11, Fair Value of Financial Instruments, for a discussion of the fair value of long-term debt.

The three-tier value hierarchy is utilized to prioritize the inputs used in measuring fair value. The hierarchy gives the highest priority to quoted prices in active markets (Level 1) and the lowest priority to unobserved inputs (Level 3). The three levels are defined as follows:

● Level 1- Quoted prices for identical instruments in active markets.

● Level 2- Quoted prices for similar instruments; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs or significant value-drivers are observable.

● Level 3- Model-derived valuations in which one or more inputs or value-drivers are both significant to the fair value measurement and unobservable.

Cash and cash equivalents as of March 31, 2021 include an investment in a money market fund, which is classified within Level 1 of the fair value hierarchy because it has readily-available market prices in active markets that are publicly accessible at the measurement date.

Deferred Charges, Policy [Policy Text Block]

Deferred Financing Costs — Deferred financing costs incurred in obtaining debt are amortized on a straight-line basis over the term of the debt, which is not materially different than using the effective interest rate method. As of March 31, 2021 there were $0.9 million of unamortized financing cost included in other current assets and $0.1 million of unamortized financing costs included as a contra to long-term debt and current portion of long-term debt on the Consolidated Balance Sheets.

Inventory, Policy [Policy Text Block]

Inventories — Substantially all inventories are stated at the lower of cost; determined under the last-in, first-out (“LIFO”) method; or market.

Income Tax, Policy [Policy Text Block]

Income Taxes — The provision for income taxes includes federal and state income taxes currently payable and those deferred because of temporary differences between the financial statement and tax basis of assets and liabilities and tax credit carryforwards. The Company uses the flow-through method to account for its investment tax credits.

The Company evaluates the likelihood of realization of its net deferred income tax assets by assessing its valuation allowance and by adjusting the amount of such allowance, if necessary. The factors used to assess the likelihood of realization are the Company’s forecast of future taxable income, the projected reversal of temporary differences and available tax planning strategies that could be implemented to realize the net deferred income tax assets.

Current rules on the accounting for uncertainty on income taxes prescribe a minimum recognition threshold for a tax position taken or expected to be taken in a tax return that is required to be met before being recognized in the financial statements. Those rules also provide guidance on derecognition, measurement, classification, interest and penalties, accounting in interim periods, disclosure and transition. The Company recognizes interest and penalties accrued on unrecognized tax benefits as well as interest received from favorable settlements within income tax expense.

Assets Held for Sale, Policy [Policy Text Block]

Assets Held for Sale—The Company classifies property and equipment as held for sale when certain criteria are met. At such time, the properties, including significant assets that are expected to be transferred as part of a sale transaction, are presented separately on the consolidated balance sheet at the lower of carrying value or estimated fair value less costs to sell and depreciation is no longer recognized. Assets classified as held for sale included buildings, land and equipment.

Discontinued Operations, Policy [Policy Text Block]

Discontinued Operations — Discontinued operations comprise those activities that have been disposed of during the period or that have been classified as held for sale at the end of the period, and represent a separate major line of business or geographical area that can be clearly distinguished for operational and financial reporting purposes. In fiscal 2019, the Company sold its Modesto fruit operations and began reporting the results of operations, cash flows and the balance sheet amounts pertaining to this as a component of discontinued operations in the consolidated financial statements.

Unless otherwise indicated, information in the notes to the consolidated financial statements relates to continuing operations.

Advertising Cost [Policy Text Block]

Advertising Costs — Advertising costs are expensed as incurred. Advertising costs charged to continuing operations were $1.8 million and $2.2 million in 2021 and 2020, respectively.

Receivable [Policy Text Block]

Accounts Receivable and Doubtful Accounts — Accounts receivable is stated at invoice value, which is net of any off invoice promotions.  A provision for doubtful accounts is recorded based upon an assessment of credit risk within the accounts receivable portfolio, experience of delinquencies (accounts over 15 days past due) and charge-offs (accounts removed from accounts receivable for expectation of non-payment), and current market conditions. Management believes these provisions are adequate based upon the relevant information presently available.

Earnings Per Share, Policy [Policy Text Block]

Earnings per Common Share — The Company has three series of convertible preferred stock, which are deemed to be participating securities that are entitled to participate in any dividend on Class A common stock as if the preferred stock had been converted into common stock immediately prior to the record date for such dividend. Basic earnings per share for common stock is calculated using the “two-class” method by dividing the earnings attributable to common stockholders by the weighted average of common shares outstanding during the period. Restricted stock is included in all earnings per share calculations.

Diluted earnings per share is calculated by dividing earnings attributable to common stockholders by the sum of the weighted average common shares outstanding plus the dilutive effect of convertible preferred stock using the “if-converted” method, which treats the contingently-issuable shares of convertible preferred stock as common stock.

Years ended March 31,	2021		2020
Continuing Operations	(In thousands, except per share amounts)
Basic
Continuing operations earnings	$	126,100	$	51,188
Deduct preferred stock dividends		23		23
Undistributed earnings		126,077		51,165
Earnings attributable to participating preferred shareholders		493		206
Earnings attributable to common shareholders	$	125,584	$	50,959
Weighted average common shares outstanding		9,088		9,264
Basic earnings from continuing operations per common share	$	13.82	$	5.50
Diluted
Earnings attributable to common shareholders	$	125,584	$	50,959
Add dividends on convertible preferred stock		20		20
Earnings attributable to common stock on a diluted basis	$	125,604	$	50,979
Weighted average common shares outstanding-basic		9,088		9,264
Additional shares to be issued related to the equity compensation plan		3		2
Additional shares to be issued under full conversion of preferred stock		67		67
Total shares for diluted		9,158		9,333
Diluted earnings from continuing operations per share	$	13.72	$	5.46

Years ended March 31,	2021		2020
Discontinued Operations	(In thousands, except per share amounts)
Basic
Discontinued operations earnings	$	-	$	1,147
Deduct preferred stock dividends		-		23
Undistributed earnings		-		1,124
Earnings attributable to participating preferred shareholders		-		5
Earnings attributable to common shareholders	$	-	$	1,119
Weighted average common shares outstanding				9,264
Basic earnings from discontinued operations per common share	$	-	$	0.12
Diluted
Earnings attributable to common shareholders	$	-	$	1,119
Add dividends on convertible preferred stock		-		20
Earnings attributable to common stock on a diluted basis	$	-	$	1,139
Weighted average common shares outstanding-basic		-		9,264
Additional shares to be issued related to the equity compensation plan		-		2
Additional shares to be issued under full conversion of preferred stock		-		67
Total shares for diluted		-		9,333
Diluted earnings from discontinued operations per share	$	-	$	0.12

Depreciation, Depletion, and Amortization [Policy Text Block]

Depreciation and Valuation — Property, plant, and equipment are stated at cost. Interest incurred during the construction of major projects is capitalized. For financial reporting, the Company provides for depreciation on the straight-line method at rates based upon the estimated useful lives of the various assets. Depreciation was $27.1 million and $26.1 million, in 2021, and 2020, respectively. The estimated useful lives are as follows: buildings and improvements — 30 years; machinery and equipment — 10-15 years; computer software — 3-5 years; vehicles — 3-7 years; and land improvements — 10-20 years.

The Company assesses its long-lived assets for impairment whenever there is an indicator of impairment. Impairment losses are evaluated if the estimated undiscounted cash flows from using the assets are less than carrying value. A loss is recognized when the carrying value of an asset exceeds its fair value.

Additionally, the Company’s assesses the potential for an other-than-temporary impairment of its equity method investment when impairment indicators are identified. The Company considers all available information, including the recoverability of the investment, the earnings and near-term prospects of the investment, factors related to the industry, amongst others relevant information. If an investment is considered to be impaired and the decline in value is other than temporary, an impairment charge is recorded. During 2021, the Company recorded an other-than-temporary impairment charge of $9.7 million to its equity method investment representing the difference between the carrying value of the Company’s investment and its proportionate share of the investment’s fair value. This charge was included in “Loss from equity investment” in the Company’s Consolidated Statements of Net Earnings. There were no significant impairment losses in 2020.

Use of Estimates, Policy [Policy Text Block]

Use of Estimates in the Preparation of Financial Statements — The preparation of financial statements in conformity with accounting principles generally accepted in the United States ("GAAP") requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements, as well as the related revenues and expenses during the reporting period. Actual amounts could differ from those estimates.

New Accounting Pronouncements, Policy [Policy Text Block]

Recently Issued Accounting Standards — In August 2018, the FASB issued ASU No. 2018-14, Compensation—Retirement Benefits—Defined Benefit Plans—General (Topic 715-20): Disclosure Framework—Changes to the Disclosure Requirements for Defined Benefit Plans, which modifies the disclosure requirements for defined benefit pension plans and other postretirement plans. ASU 2018-14 became effective for annual periods ending after December 15, 2020. The Company adopted the standard for its fiscal year ended March 31, 2021 and the adoption of ASU 2018-14 did not have an impact on the consolidated financial statements as this ASU only modified disclosure requirements. See Note 10 “Retirement Plants” and related disclosures.

In May 2020, the SEC issued a final rule that amends the financial statement requirements for acquisitions and dispositions of businesses. The amendments primarily relate to disclosures required by Rule 3-05 and Article 11 of Regulation S-X. Among other things, the final rule modifies the tests provided in Rule 1-02(w) of Regulation S-X used to determine whether a subsidiary or an acquired or disposed business is significant. The amendments took effect January 1, 2021 and the Company elected not to early adopt the provisions of the final rule prior to that date. Therefore the final rule became effective January 1, 2021 and did not impact the Company’s financial statement disclosures in fiscal 2021.

In March 2020, the FASB issued Accounting Standards Update (“ASU”) 2020-04, Reference Rate Reform: Facilitation of the Effects of Reference Rate Reform on Financial Reporting which provides optional guidance for a limited time to ease the potential accounting burden associated with the expected market transition away from the London Interbank Offered Rate (LIBOR) and other interbank offered rates to alternative reference rates. LIBOR is used to determine interest expense related to the Company’s Revolver, which matures in 2026. This update was effective starting March 12, 2020 and the Company may elect to apply the amendments prospectively through December 31, 2022. We are currently evaluating the effect that ASU 2020-04 will have on our consolidated financial statements and related disclosures.

In December 2019, the FASB issued ASU No. 2019-12 to simplify the accounting for income taxes by removing certain exceptions to the general principles and simplify areas such as franchise taxes, step-up in tax basis goodwill, separate entity financial statements and interim recognition of enacted tax laws or rate changes. The new standard will be effective for the Company in the first quarter fiscal year 2022. We are currently evaluating the effect that the new standard will have on the Company’s financial position, results of operations and related disclosures.

In June 2016, the FASB issued ASU No. 2016-13, "Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments," which was subsequently amended in November 2018 through ASU No. 2018-19, "Codification Improvements to Topic 326, Financial Instruments - Credit Losses." ASU No. 2016-13 will require entities to estimate lifetime expected credit losses for trade and other receivables along with other financial instruments which will result in earlier recognition of credit losses. Further, the new credit loss model will affect how entities in all industries estimate their allowance for losses for receivables that are current with respect to their payment terms. In November 2019, the FASB issued ASU No. 2019-10, which, among other things, deferred the application of the new guidance on credit losses for smaller reporting companies to fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. This guidance will be applied through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective (i.e., a modified-retrospective approach). Under the above-mentioned deferral, the Company expects to adopt ASU No. 2016-03, and the related ASU No. 2018-19 amendments, beginning as of April 1, 2023 and is in the process of assessing the impact, if any, that this new guidance is expected to have on the Company’s results of operations, financial condition and/or financial statement disclosures.

Reclassification, Comparability Adjustment [Policy Text Block]

Reclassifications — Certain previously reported amounts have been reclassified to conform to the current period classification.

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Note 1 - Summary of Significant Accounting Policies (Tables)

12 Months Ended

Mar. 31, 2021

Notes Tables

Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]

Years ended March 31,	2021		2020
Continuing Operations	(In thousands, except per share amounts)
Basic
Continuing operations earnings	$	126,100	$	51,188
Deduct preferred stock dividends		23		23
Undistributed earnings		126,077		51,165
Earnings attributable to participating preferred shareholders		493		206
Earnings attributable to common shareholders	$	125,584	$	50,959
Weighted average common shares outstanding		9,088		9,264
Basic earnings from continuing operations per common share	$	13.82	$	5.50
Diluted
Earnings attributable to common shareholders	$	125,584	$	50,959
Add dividends on convertible preferred stock		20		20
Earnings attributable to common stock on a diluted basis	$	125,604	$	50,979
Weighted average common shares outstanding-basic		9,088		9,264
Additional shares to be issued related to the equity compensation plan		3		2
Additional shares to be issued under full conversion of preferred stock		67		67
Total shares for diluted		9,158		9,333
Diluted earnings from continuing operations per share	$	13.72	$	5.46

Years ended March 31,	2021		2020
Discontinued Operations	(In thousands, except per share amounts)
Basic
Discontinued operations earnings	$	-	$	1,147
Deduct preferred stock dividends		-		23
Undistributed earnings		-		1,124
Earnings attributable to participating preferred shareholders		-		5
Earnings attributable to common shareholders	$	-	$	1,119
Weighted average common shares outstanding				9,264
Basic earnings from discontinued operations per common share	$	-	$	0.12
Diluted
Earnings attributable to common shareholders	$	-	$	1,119
Add dividends on convertible preferred stock		-		20
Earnings attributable to common stock on a diluted basis	$	-	$	1,139
Weighted average common shares outstanding-basic		-		9,264
Additional shares to be issued related to the equity compensation plan		-		2
Additional shares to be issued under full conversion of preferred stock		-		67
Total shares for diluted		-		9,333
Diluted earnings from discontinued operations per share	$	-	$	0.12

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Note 2 - Assets Held For Sale (Tables)

12 Months Ended

Mar. 31, 2021

Disposal Group, Held-for-sale, Not Discontinued Operations [Member]

Notes Tables

Disposal Groups, Including Discontinued Operations [Table Text Block]

	March 31, 2021
Property, Plant and Equipment (net)	$	8,656
Current Assets Held For Sale	$	8,656

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Note 3 - Discontinued Operations (Tables)

12 Months Ended

Mar. 31, 2021

Discontinued Operations [Member]

Notes Tables

Disposal Groups, Including Discontinued Operations [Table Text Block]

	March 31, 2021		March 31, 2020
Other Current Assets	$	338	$	182
Current Assets Held For Sale-Discontinued Operations	$	338	$	182
Other Assets	$	778	$	1,026
Noncurrent Assets Held For Sale-Discontinued Operations	$	778	$	1,026
Accounts Payable and Accrued Expenses	$	-	$	880
Current Liabilities Held For Sale-Discontinued Operations	$	-	$	880

	Twelve Months Ended
	March 31, 2021		March 31, 2020
Net Sales	$	-	$	-
Costs and Expenses:
Cost of Product Sold		-		57
Selling, General and Administrative		-		-
Plant Restructuring Charge (a)		-		(1,150	)
Interest Expense		-		-
Total cost and expenses		-		(1,093	)
Earnings From Discontinued Operations Before Income Taxes		-		1,093
Gain on the Sale of Assets Before Income Taxes		-		(430	)
Income Tax Expense		-		376
Net Earnings From Discontinued Operations, Net of Tax	$	-	$	1,147

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Note 4 - Revenue Recognition (Tables)

12 Months Ended

Mar. 31, 2021

Notes Tables

Disaggregation of Revenue [Table Text Block]

	Year Ended
	March 31, 2021		March 31 ,2020
Canned Vegetables	$	1,172,635	$	986,080
Frozen		102,339		119,044
Fruit Products		88,289		97,393
Prepared Foods		71,866		105,044
Chip Products		10,999		11,475
Other		21,516		16,733
Total	$	1,467,644	$	1,335,769

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Note 6 - Long-term Debt (Tables)

12 Months Ended

Mar. 31, 2021

Notes Tables

Schedule of Long-term Debt Instruments [Table Text Block]

	2021		2020
	(In thousands)
Revolving credit facility, 1.38% and 2.59%, due through 2026	$	1,000	$	106,924
Farm Credit term loan, 3.30% and 4.54%, due 2026		96,869		99,941
Bluegrass tax exempt bonds, 0% and 3.01%		-		10,000
Economic development note, 2.00%, due through 2022		500		500
Other		216		216
Total		98,585		217,581
Less current portion		4,500		500
Long-term debt	$	94,085	$	217,081

Schedule of Maturities of Long-term Debt [Table Text Block]

Years ending March 31:
2022	$	4,500
2023		4,000
2024		4,000
2025		4,000
2026		81,869
Thereafter		216
Total	$	98,585

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Note 7 - Leases (Tables)

12 Months Ended

Mar. 31, 2021

Notes Tables

Lease, Cost [Table Text Block]

	Year Ended		Year Ended
	March 31, 2021		March 31, 2020
Lease cost:
Amortization of right of use asset	$	4,746	$	4,335
Interest on lease liabilities		1,102		1,353
Finance lease cost		5,848		5,688
Operating lease cost		23,736		30,190
Total lease cost	$	29,584	$	35,878
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from finance leases	$	1,102	$	1,353
Operating cash flows from operating leases		23,864		29,845
Financing cash flows from finance leases		6,321		6,437
Total	$	31,287	$	37,635
Right-of-use assets obtained in exchange for new finance lease liabilities	$	1,740	$	4,424
Right-of-use assets obtained in exchange for new operating lease liabilities	$	2,009	$	6,419
Weighted-average lease term (years):
Financing leases		4.5		5.3
Operating leases		3.5		3.8
Weighted-average discount rate (percentage):
Financing leases		4.1		4.1
Operating leases		4.4		4.5

Lessee, Lease Liability, Maturity [Table Text Block]

Years ending March 31:	Operating		Financing
2022	$	18,606	$	7,665
2023		14,042		7,665
2024		7,118		6,096
2025		3,572		2,713
2026		1,729		1,625
2027-2032		3,151		2,786
Total minimum payment required	$	48,218	$	28,550
Less interest		3,402		2,540
Present value of minimum lease payments		44,816		26,010
Amount due within one year		17,047		6,778
Long-term lease obligation	$	27,769	$	19,232

Years ending March 31:	Operating		Financing
2021	$	23,896	$	7,313
2022		18,820		7,313
2023		13,022		7,313
2024		6,510		5,786
2025		3,023		2,395
2026-2031		4,597		3,995
Total minimum payment required	$	69,868	$	34,115
Less interest		5,559		3,524
Present value of minimum lease payments		64,309		30,591
Amount due within one year		21,549		6,225
Long-term lease obligation	$	42,760	$	24,366

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Note 8 - Income Taxes (Tables)

12 Months Ended

Mar. 31, 2021

Notes Tables

Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]

	2021		2020
	(In thousands)
Current:
Federal	$	13,121	$	(1,912	)
State		4,145		1,187
Total		17,266		(725	)
Deferred:
Federal	$	13,486	$	14,251
State		3,164		1,278
Total		16,650		15,529
Total income taxes (1)	$	33,916	$	14,804

Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]

	2021			2020
Computed (expected tax rate)		21.0	%		21.0	%
State income taxes (net of federal tax benefit)		3.1			2.8
Federal credits		(0.3	)		(0.8	)
Addition/(reduction) to uncertain tax positions		(0.1	)		0.3
Other permanent differences not deductible		-			0.2
Change in valuation allowance		0.2			0.7
Tax law change		-			(2.8	)
Federal NOL carryback rate difference		(2.8	)		-
Other		0.1			0.6
Effective income tax rate		21.2	%		22.0	%

Schedule of Deferred Tax Assets and Liabilities [Table Text Block]

	2021			2020
	(In thousands)
Deferred income tax assets:
Future tax credits	$	5,884		$	5,581
Inventory valuation		2,204			163
Restructuring reserve		-			220
Employee benefits		2,063			2,219
Insurance		685			616
Other comprehensive loss		6,511			26,562
Interest		4			24
Prepaid revenue		463			565
Other		815			186
Equity investment basis difference		1,589			-
Net operating loss and other tax attribute carryovers		85			2,233
Total assets		20,303			38,369
Deferred income tax liabilities:
Property basis and depreciation difference		17,975			12,664
Intangibles		33			208
Equity investment basis difference		-			1,239
Right of use assets		4,371			4,373
Pension		21,556			7,540
Total liabilities		43,935			26,024
Valuation allowance - non-current		4,674			4,473
Net deferred income tax (liability)/asset	$	(28,306	)	$	7,872

Summary of Income Tax Contingencies [Table Text Block]

	2021			2020
	(In thousands)
Beginning balance	$	2,065		$	396
Tax positions related to current year:
Additions		279			1,123
Tax positions related to prior years:
Additions		34			569
Reductions		(1,626	)		(16	)
Lapses in statues of limitations		(376	)		(7	)
Balance as of March 31,	$	376		$	2,065

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Note 10 - Retirement Plans (Tables)

12 Months Ended

Mar. 31, 2021

Notes Tables

Schedule of Changes in Projected Benefit Obligations [Table Text Block]

	2021			2020
	(In thousands)
Change in Benefit Obligation
Benefit obligation at beginning of year	$	278,227		$	250,461
Service cost		9,326			9,244
Interest cost		9,266			9,064
Liability gain due to curtailment		-			(1,114	)
Actuarial loss		17,712			20,146
Benefit payments and expenses		(28,468	)		(9,574	)
Benefit obligation at end of year	$	286,063		$	278,227
Change in Plan Assets
Fair value of plan assets at beginning of year	$	202,485		$	233,112
Actual return on plan assets		103,166			(46,325	)
Employer contributions		73,000			26,000
Benefit payments and expenses		(29,737	)		(10,302	)
Fair value of plan assets at end of year	$	348,914		$	202,485
Funded (Unfunded) Status	$	62,851		$	(75,742	)

Schedule of Amounts in Accumulated Other Comprehensive Income (Loss) to be Recognized over Next Fiscal Year [Table Text Block]

	2021			2020
	(In thousands)
Amounts Recognized in Accumulated Other Comprehensive Pre-Tax Loss
Prior service cost	$	(258	)	$	(349	)
Net loss		(26,265	)		(105,866	)
Accumulated other comprehensive pre-tax loss	$	(26,523	)	$	(106,215	)

Schedule of Amounts Recognized in Other Comprehensive Income (Loss) [Table Text Block]

	Pension and
	post retirement plan
	adjustments, net
	of tax
	(In thousands)
Accumulated Other Comprehensive Loss
Balance at March 31, 2020	$	(79,220	)
Other comprehensive income		60,153
Balance at March 31, 2021	$	(19,067	)

Schedule of Defined Benefit Plans Disclosures [Table Text Block]

	2021			2020
	(In thousands)
Service cost including administration	$	10,627		$	9,935
Interest cost		9,266			9,064
Expected return on plan assets		(15,804	)		(16,746	)
Amortization of net loss		9,919			579
Prior service cost		91			120
Net periodic benefit cost	$	14,099		$	2,952
Settlement/curtailment expense		-			118
Net periodic benefit cost with curtailment	$	14,099		$	3,070

Defined Benefit Plan, Assumptions [Table Text Block]

	2021			2020
Weighted Average Assumptions for Balance Sheet Liability at End of Year:
Discount rate - projected benefit obligation		3.43	%		3.69	%
Rate of compensation increase		3.00	%		3.00	%
Mortality table		Pri-2012 Blue Collar Generational Table Improvement Scale MP-2020			Pri-2012 Blue Collar Generational Table Improvement Scale MP-2019
Weighted Average Assumptions for Benefit Cost at Beginning of Year:
Discount rate - benefit obligations		3.69	%		4.14	%
Discount rate - interest cost		3.30	%		3.74	%
Discount rate - service cost		3.87	%		4.34	%
Discount rate - interest on service cost		3.43	%		3.69	%
Expected return on plan assets		7.25	%		7.25	%
Rate of compensation increase		3.00	%		3.00	%

Schedule of Allocation of Plan Assets [Table Text Block]

	Target			Percentage of Plan
	Allocation			Assets at March 31,
	2022			2021			2020
Plan Assets
Equity securities		50	%		48	%		97	%
Debt securities		50	%		50	%		-
Real estate		-			-			-
Cash		-			2	%		3	%
Total		100	%		100	%		100	%

Schedule of Expected Contributions [Table Text Block]

Expected Employer Contributions	$	-
Expected Employee Contributions	$	-

Schedule of Expected Benefit Payments [Table Text Block]

2022	$	11,178
2023		11,290
2024		11,913
2025		12,640
2026		13,342
2027-2031		75,496

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Note 11 - Fair Value of Financial Instruments (Tables)

12 Months Ended

Mar. 31, 2021

Notes Tables

Fair Value, by Balance Sheet Grouping [Table Text Block]

	2021				2020
	Carrying		Estimated		Carrying		Estimated
	Amount		Fair Value		Amount		Fair Value
	(in thousands)
Long-term debt, including current portion	$	98,585	$	97,226	$	217,581	$	217,559

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Note 12 - Inventories (Tables)

12 Months Ended

Mar. 31, 2021

Notes Tables

Schedule of Inventory, Current [Table Text Block]

	2021		2020
Finished products	$	317,654	$	351,251
In process		25,175		31,173
Raw materials and supplies		128,987		173,474
		471,816		555,898
Less excess of FIFO cost over LIFO cost		128,672		144,267
Total inventories	$	343,144	$	411,631

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Note 14 - Segment Information (Tables)

12 Months Ended

Mar. 31, 2021

Notes Tables

Schedule of Segment Reporting Information, by Segment [Table Text Block]

	Fruit and		Prepared
	Vegetable		Foods		Snack		Other			Total
	(In thousands)
2021:
Net sales	$	1,363,263	$	71,866	$	10,999	$	21,516		$	1,467,644
Operating income		175,810		1,967		705		2,585			181,067
Identifiable assets		853,602		51,803		2,054		773			908,232
Capital expenditures		67,963		1,451		508		1,528			71,450
Depreciation and amortization		29,534		2,299		194		349			32,376
2020:
Net sales	$	1,202,528	$	105,044	$	11,475	$	16,722		$	1,335,769
Operating income (loss)		65,921		3,774		837		(8	)		70,524
Identifiable assets		853,438		51,803		2,054		773			908,068
Capital expenditures		63,543		2,122		19		756			66,440
Depreciation and amortization		26,486		3,564		207		676			30,933

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Note 16 - Plant Restructuring (Tables)

12 Months Ended

Mar. 31, 2021

Notes Tables

Restructuring and Related Costs [Table Text Block]

				Other
	Severance			Cost
	Payable			Payable			Total
Balance March 31, 2019	$	225		$	1			226
Charge to expense		1,229			5,817			7,046
Cash payments/write offs		(1,252	)		(5,818	)		(7,070	)
Balance March 31, 2020		202			-			202
Charge to expense		227			(45	)		182
Cash payments/write offs		(429	)		45			(384	)
Balance March 31, 2021	$	-		$	-		$	-

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Schedule II - Valuation and Qualifying Accounts (Tables)

12 Months Ended

Mar. 31, 2021

Notes Tables

Schedule of Valuation and Qualifying Accounts [Table Text Block]

	Balance at		Charged/		Charged to		Deductions			Balance
	beginning		(credited)		other		from			at end
	of period		to income		accounts		reserve			of period
Year-ended March 31, 2021:
Allowance for doubtful accounts	$	1,598	$	(1,304)	$	_	$	(45)	(a)	$	339
Income tax valuation allowance	$	4,473	$	201	$	-	$	-		$	4,674
Year-ended March 31, 2020:
Allowance for doubtful accounts	$	57	$	1,627	$	-	$	86	(a)	$	1,598
Income tax valuation allowance	$	3,988	$	485	$	-	$	-		$	4,473

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Note 1 - Summary of Significant Accounting Policies (Details Textual) $ in Thousands	12 Months Ended
	Mar. 31, 2021 USD ($)	Mar. 31, 2020 USD ($)
Number of States in which Entity Operates	8
Cash and Cash Equivalents, at Carrying Value, Ending Balance	$ 59,837	$ 10,702
Advertising Expense	1,800	2,200
Depreciation, Total	27,100	26,100
Equity Method Investment, Other than Temporary Impairment	$ 9,700	0
Building and Building Improvements [Member]
Property, Plant and Equipment, Useful Life (Year)	30 years
Machinery and Equipment [Member] | Minimum [Member]
Property, Plant and Equipment, Useful Life (Year)	10 years
Machinery and Equipment [Member] | Maximum [Member]
Property, Plant and Equipment, Useful Life (Year)	15 years
Software and Software Development Costs [Member] | Minimum [Member]
Property, Plant and Equipment, Useful Life (Year)	3 years
Software and Software Development Costs [Member] | Maximum [Member]
Property, Plant and Equipment, Useful Life (Year)	5 years
Vehicles [Member] | Minimum [Member]
Property, Plant and Equipment, Useful Life (Year)	3 years
Vehicles [Member] | Maximum [Member]
Property, Plant and Equipment, Useful Life (Year)	7 years
Land Improvements [Member] | Minimum [Member]
Property, Plant and Equipment, Useful Life (Year)	10 years
Land Improvements [Member] | Maximum [Member]
Property, Plant and Equipment, Useful Life (Year)	20 years
Other Current Assets [Member]
Debt Issuance Costs, Net, Total	$ 900
Current and Non-Current Portion of Long Term Debt [Member]
Debt Issuance Costs, Net, Total	100
Money Market Funds [Member]
Cash and Cash Equivalents, at Carrying Value, Ending Balance	$ 47,400	$ 0
Customer Concentration Risk [Member] | Revenue Benchmark [Member] | Top Ten Customers [Member]
Concentration Risk, Percentage	50.00%	49.00%
Seneca Food Plants [Member]
Number of Real Estate Properties	26
Seneca Foods Warehouses [Member]
Number of Real Estate Properties	25

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Note 1 - Summary of Significant Accounting Policies - Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	12 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Continuing operations earnings	$ 126,100	$ 51,188
Deduct preferred stock dividends	23	23
Undistributed earnings	126,077	51,165
Earnings attributable to participating preferred shareholders	493	206
Earnings attributable to common shareholders	$ 125,584	$ 50,959
Weighted average common shares outstanding (in shares)	9,088	9,264
Basic earnings from continuing operations per common share (in dollars per share)	$ 13.82	$ 5.50
Earnings attributable to common shareholders	$ 125,584	$ 50,959
Add dividends on convertible preferred stock	20	20
Earnings attributable to common stock on a diluted basis	$ 125,604	$ 50,979
Additional shares to be issued related to the equity compensation plan (in shares)	3	2
Additional shares to be issued under full conversion of preferred stock (in shares)	67	67
Total shares for diluted (in shares)	9,158	9,333
Diluted earnings from continuing operations per share (in dollars per share)	$ 13.72	$ 5.46
Discontinued operations earnings	$ 0	$ 1,147
Deduct preferred stock dividends	0	23
Undistributed earnings	0	1,124
Earnings attributable to participating preferred shareholders	0	5
Earnings attributable to common shareholders	$ 0	$ 1,119
Weighted average common shares outstanding (in shares)	0	9,264
Basic earnings from discontinued operations per common share (in dollars per share)	$ 0	$ 0.12
Earnings attributable to common shareholders	$ 0	$ 1,119
Add dividends on convertible preferred stock	0	20
Earnings attributable to common stock on a diluted basis	$ 0	$ 1,139
Weighted average common shares outstanding-basic (in shares)	0	9,264
Additional shares to be issued related to the equity compensation plan (in shares)		2
Additional shares to be issued under full conversion of preferred stock (in shares)	0	67
Total shares for diluted (in shares)	0	9,333
Diluted earnings from discontinued operations per share (in dollars per share)	$ 0	$ 0.12

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Note 2 - Assets Held For Sale (Details Textual) $ in Millions	12 Months Ended
	Mar. 31, 2021 USD ($)
Disposal Group, Not Discontinued Operation, Loss (Gain) on Write-down	$ 0.6

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Note 2 - Assets Held For Sale - Assets and Liabilities Held For Sale (Details) - Disposal Group, Held-for-sale, Not Discontinued Operations [Member] - USD ($) $ in Thousands	Mar. 31, 2021	Mar. 31, 2020
Property, Plant and Equipment (net)	$ 8,656
Current Assets Held For Sale	$ 8,656	$ 0

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Note 3 - Discontinued Operations (Details Textual) - USD ($)			12 Months Ended
		Oct. 09, 2018	Mar. 31, 2021	Mar. 31, 2020
Pension Termination [Member]
Disposal Group, Including Discontinued Operation, Restructuriing Charge				$ (902,000)
Modesto Facility [Member] | Discontinued Operations, Disposed of by Sale [Member]
Proceeds from Divestiture of Businesses, Net of Cash Divested, Total		$ 63,326,000
Disposal Group, Including Discontinued Operation, Revenue, Percent		15.00%
Disposal Group, Including Discontinued Operation, Restructuriing Charge	[1]		$ 0	$ (1,150,000)

[1] Includes $902,000 credit for pension termination in fiscal 2020. Includes $3,746,000 of Modesto severance in fiscal 2019.

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Note 3 - Discontinued Operations - Asset and Liabilities in Discontinued Operations (Details) - USD ($) $ in Thousands		12 Months Ended
		Mar. 31, 2021	Mar. 31, 2020
Noncurrent Assets Held For Sale-Discontinued Operations		$ 778	$ 1,026
Current Liabilities Held For Sale-Discontinued Operations		0	880
Income Tax Expense		0	400
Net Earnings From Discontinued Operations, Net of Tax		0	1,147
Modesto Facility [Member] | Discontinued Operations, Disposed of by Sale [Member]
Other Current Assets		338	182
Current Assets Held For Sale-Discontinued Operations		338	182
Other Assets		778	1,026
Noncurrent Assets Held For Sale-Discontinued Operations		778	1,026
Accounts Payable and Accrued Expenses		0	880
Current Liabilities Held For Sale-Discontinued Operations		0	880
Net Sales		0	0
Cost of Product Sold		0	57
Selling, General and Administrative		0	0
Plant Restructuring Charge (a)	[1]	0	(1,150)
Interest Expense	[2]	0	0
Total cost and expenses		0	(1,093)
Earnings From Discontinued Operations Before Income Taxes		0	1,093
Gain on the Sale of Assets Before Income Taxes	[3],[4],[5]	0	(430)
Income Tax Expense		0	376
Net Earnings From Discontinued Operations, Net of Tax		$ 0	$ 1,147

[1] Includes $902,000 credit for pension termination in fiscal 2020. Includes $3,746,000 of Modesto severance in fiscal 2019.

[2] Includes interest on debt directly related to Modesto including the building mortgage and equipment leases and an allocation of the Company's line of credit facility.

[3] Includes $51,446,000 gain on the sale of Modesto plant and equipment in fiscal 2019.

[4] Includes a $24,211,000 gain as a result of LIFO layer liquidations from the disposal of the inventory for fiscal 2019.

[5] Includes a $4,975,000 gain on the sale of bins in fiscal 2019.

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Note 4 - Revenue Recognition (Details Textual) - USD ($) $ in Thousands	12 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Percentage of Revenues	98.00%
Contract with Customer, Asset, after Allowance for Credit Loss, Current, Total	$ 911	$ 7,610

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Note 4 - Revenue Recognition - Segment Revenue Disaggregated by Product Category Groups (Details) - USD ($) $ in Thousands	12 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Net sales	$ 1,467,644	$ 1,335,769
Canned Vegetables [Member]
Net sales	1,172,635	986,080
Frozen [Member]
Net sales	102,339	119,044
Fruit [Member]
Net sales	88,289	97,393
Prepared Foods [Member]
Net sales	71,866	105,044
Chip Products [Member]
Net sales	10,999	11,475
Manufactured Product, Other [Member]
Net sales	$ 21,516	$ 16,733

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Note 5 - Revolving Credit Facility (Details Textual) - USD ($) $ in Millions	12 Months Ended
	Mar. 31, 2021	Mar. 31, 2022	Jul. 31, 2021	Mar. 24, 2021
Accounts Receivable, Vegetable and Fruit Products Sold, Standard Payment Term (Month)	3 months
Accounts Receivable, Vegetable and Fruit Products Sold, Maximum Payment Term (Month)	7 months
Revolving Credit Facility [Member]
Line of Credit Facility, Maximum Borrowing Capacity During Nonproduction Period				$ 400
Long-term Line of Credit, Total	$ 1
Revolving Credit Facility [Member] | Forecast [Member]
Line of Credit Facility, Maximum Borrowing Capacity During Nonproduction Period			$ 300
Line of Credit Facility, Maximum Borrowing Capacity During Production Period		$ 400

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Note 6 - Long-term Debt (Details Textual) - USD ($)	12 Months Ended
	Mar. 31, 2021	May 28, 2020
Statutory Accounting Practices, Statutory Amount Available for Dividend Payments without Regulatory Approval	$ 50,000
Dividends, Preferred Stock, Cash	23,000
Pledged Assets Not Separately Reported, Fixed Assets	508,200,000
Term Loan Payable to Farm Credit East ACA [Member]
Debt Instrument, Face Amount		$ 100,000,000.0
Debt Instrument, Periodic Payment, Principal	1,000,000.0
Debt Instrument, Unamortized Discount, Total		$ 200,000
Term Loan [Member]
Debt Agreements, Financial Covenants, Minimum EBITDA	$ 50,000,000
Revolving Credit Facility [Member]
Debt Instrument, Covenant, Maximum Percentage of Commitments for Available Line of Credit that Requires Minimum Fixed Charge Coverage Ratio	10.00%
Debt Instrument, Covenant, Maximum Amount for Available Line of Credit that Requires Minimum Fixed Charge Coverage Ratio	$ 25,000,000

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Note 6 - Long-term Debt - Summary of Long-term Debt (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Mar. 31, 2020
Long-term debt	$ 98,585	$ 217,581
Less current portion	4,500	500
Long-term debt	94,085	217,081
Line of Credit [Member]
Long-term debt	1,000	106,924
Term Loan [Member]
Long-term debt	96,869	99,941
Tax-exempt Bond [Member]
Long-term debt	0	10,000
Economic Development Note [Member]
Long-term debt	500	500
Other [Member]
Long-term debt	$ 216	$ 216

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Note 6 - Long-term Debt - Summary of Long-term Debt (Details) (Parentheticals)	Mar. 31, 2021	Mar. 31, 2020
Line of Credit [Member]
Long-term debt, weighted average interest rate	1.38%	2.59%
Term Loan [Member]
Long-term debt, weighted average interest rate	3.30%	4.54%
Tax-exempt Bond [Member]
Long-term debt, weighted average interest rate	0.00%	3.01%
Economic Development Note [Member]
Long-term debt, weighted average interest rate	2.00%	2.00%

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Note 6 - Long-term Debt - Debt Repayment Requirements (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Mar. 31, 2020
2022	$ 4,500
2023	4,000
2024	4,000
2025	4,000
2026	81,869
Thereafter	216
Total	$ 98,585	$ 217,581

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Note 7 - Leases (Details Textual) - USD ($)	Mar. 31, 2021	Mar. 31, 2020	Mar. 31, 2019
Stockholders' Equity Attributable to Parent, Ending Balance	$ 577,815,000	$ 394,364,000
Retained Earnings [Member]
Stockholders' Equity Attributable to Parent, Ending Balance	585,874,000	$ 459,797,000	$ 409,504,000
Accounting Standards Update 2016-02 [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | Retained Earnings [Member]
Stockholders' Equity Attributable to Parent, Ending Balance	$ 2,019,000

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Note 7 - Leases - Lease Expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Amortization of right of use asset	$ 4,746	$ 4,335
Interest on lease liabilities	1,102	1,353
Finance lease cost	5,848	5,688
Operating lease cost	23,736	30,190
Total lease cost	29,584	35,878
Operating cash flows from finance leases	1,102	1,353
Operating cash flows from operating leases	23,864	29,845
Financing cash flows from finance leases	6,321	6,437
Total	31,287	37,635
Right-of-use assets obtained in exchange for new finance lease liabilities	1,740	4,424
Right-of-use assets obtained in exchange for new operating lease liabilities	$ 2,009	$ 6,419
Financing leases (Year)	4 years 6 months	5 years 3 months 18 days
Operating leases, lease term (Year)	3 years 6 months	3 years 9 months 18 days
Financing leases	4.10%	4.10%
Operating leases, discount rate	4.40%	4.50%

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Note 7 - Leases - Undiscounted Future Lease Payments Under Operating Leases and Financial Leases (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Mar. 31, 2020
Year one, operating lease	$ 18,606	$ 23,896
Year one, financing lease	7,665	7,313
Year two, operating lease	14,042	18,820
Year two, financing lease	7,665	7,313
Year three, operating lease	7,118	13,022
Year three, financing lease	6,096	7,313
Year four, operating lease	3,572	6,510
Year four, financing lease	2,713	5,786
Year five, operating lease	1,729	3,023
Year five, financing lease	1,625	2,395
Thereafter, operating lease	3,151	4,597
Thereafter, financing lease	2,786	3,995
Total minimum payment required, operating	48,218	69,868
Total minimum payment required, financing	28,550	34,115
Less interest, operating	3,402	5,559
Less interest, financing	2,540	3,524
Present value of minimum lease payments, operating	44,816	64,309
Present value of minimum lease payments, financing	26,010	30,591
Amount due within one year, financing	6,778	6,225
Long-term lease obligation, operating	27,769	42,760
Long-term lease obligation, financing	19,232	24,366
Current Portion of Long-term Debt and Lease Obligations [Member]
Amount due within one year, operating	$ 17,047	$ 21,549

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Note 8 - Income Taxes (Details Textual) - USD ($) $ in Thousands	12 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Operating lease impairment adjustment upon the adoption of ASU 2016-02 "Leases", tax	$ 33,916	$ 14,427
Discontinued Operation, Tax Effect of Discontinued Operation, Total	$ 0	$ 400
Effective Income Tax Rate Reconciliation, Percent, Total	21.20%	22.00%
Effective Income Tax Rate Continuing Operations Change	(2.80%)
Effective Income Tax Rate Reconciliation, Tax Law Change, Percent	0.00%	(2.80%)
Effective Income Tax Rate Reconciliation, CARES Act, Amount	$ 4,500	$ 1,700
Deferred Income Tax Liabilities, Net, Total	28,306	0
Deferred Income Tax Assets, Net, Total	0	7,872
Tax Credit Carryforward, Valuation Allowance	4,700
Unrecognized Tax Benefits, Uncertainty on Timing	0	1,600
Unrecognized Tax Benefits, Income Tax Penalties and Interest Expense, Total	(200)	200
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued, Total	0	$ 200
Effective Income Tax Rate Reconciliation, Lapses of Applicable Statute of Limitations, Amount	400
California Franchise Tax Board [Member]
Tax Credit Carryforward, Amount	1,500
New York State Division of Taxation and Finance [Member]
Tax Credit Carryforward, Amount	2,100
Wisconsin Department of Revenue [Member]
Tax Credit Carryforward, Amount	$ 2,300

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Note 8 - Income Taxes - Provision of Income Taxes (Details) - USD ($) $ in Thousands		12 Months Ended
		Mar. 31, 2021	Mar. 31, 2020
Federal		$ 13,121	$ (1,912)
State		4,145	1,187
Total		17,266	(725)
Federal		13,486	14,251
State		3,164	1,278
Total		16,650	15,529
Total income taxes (1)	[1]	$ 33,916	$ 14,804

[1] Income tax expense (benefit) included in the financial statements is comprised of $14.4 million from continuing operations and $0.4 million from discontinued operations in 2020. There was no income tax effect in 2021 as a result of discontinued operations.

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Note 8 - Income Taxes - Reconciliation of Income Tax Rate (Details)	12 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Computed (expected tax rate)	21.00%	21.00%
State income taxes (net of federal tax benefit)	3.10%	2.80%
Federal credits	(0.30%)	(0.80%)
Addition/(reduction) to uncertain tax positions	(0.10%)	0.30%
Other permanent differences not deductible	0.00%	0.20%
Change in valuation allowance	0.20%	0.70%
Tax law change	0.00%	(2.80%)
Federal NOL carryback rate difference	(2.80%)	0.00%
Other	0.10%	0.60%
Effective income tax rate	21.20%	22.00%

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Note 8 - Income Taxes - Deferred Income Tax Assets and Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Mar. 31, 2020
Future tax credits	$ 5,884	$ 5,581
Inventory valuation	2,204	163
Restructuring reserve	0	220
Employee benefits	2,063	2,219
Insurance	685	616
Other comprehensive loss	6,511	26,562
Interest	4	24
Prepaid revenue	463	565
Other	815	186
Equity investment basis difference	1,589	0
Net operating loss and other tax attribute carryovers	85	2,233
Total assets	20,303	38,369
Property basis and depreciation difference	17,975	12,664
Intangibles	33	208
Equity investment basis difference	0	1,239
Right of use assets	4,371	4,373
Pension	21,556	7,540
Total liabilities	43,935	26,024
Valuation allowance - non-current	4,674	4,473
Net deferred income tax liability	$ (28,306)
Net deferred income tax asset		$ 7,872

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Note 8 - Income Taxes - Uncertain Tax Positions (Details) - USD ($) $ in Thousands	12 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Beginning balance	$ 2,065	$ 396
Additions	279	1,123
Additions	34	569
Reductions	(1,626)	(16)
Lapses in statues of limitations	(376)	(7)
Balance as of March 31,	$ 376	$ 2,065

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Note 9 - Stockholders' Equity (Details Textual) - USD ($)	12 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Mar. 31, 2003
Dividends, Preferred Stock, Cash	$ 23,000
Common Stock, Capital Shares Reserved for Future Issuance (in shares)	33,695
Treasury Stock, Shares, Acquired (in shares)	3,103,547
Treasury Stock, Value, Ending Balance	$ 91,198,000	$ 88,319,000
Treasury Stock [Member]
Dividends, Preferred Stock, Cash	(0)	(0)
Treasury Stock, Value, Acquired, Cost Method	4,358,000	$ 12,673,000
Defined Contribution Plan, Employer Discretionary Contribution Value of Shares	$ 1,500,000
Defined Contribution Plan, Employer Discretionary Contribution Share Amount (in shares)	28,276
Conversion of Convertible Participating Preferred Stock to Common Stock [Member]
Conversion of Stock, Shares Converted (in shares)	1,500
Convertible from Series A Preferred Stock to Class A Stock [Member]
Share for Share Conversion Number (in shares)	20
Convertible from Series B Preferred Stock to Class A Stock [Member
Share for Share Conversion Number (in shares)	30
Cumulative Preferred Stock [Member]
Preferred Stock, Shares Authorized (in shares)	200,000
Preferred Stock, Dividend Rate, Percentage	6.00%
Preferred Stock, Par or Stated Value Per Share (in dollars per share)	$ 0.25
Preferred Stock, Shares Outstanding, Ending Balance (in shares)	200,000	200,000
Dividends, Preferred Stock, Cash	$ 3,000	$ 3,000
No Par Value Preferred Stock [Member]
Preferred Stock, Shares Authorized (in shares)	30,000
Preferred Class A [Member]
Preferred Stock, Shares Authorized (in shares)	8,200,000
Preferred Stock, Par or Stated Value Per Share (in dollars per share)	$ 25
Preferred Stock, Shares Non-designated (in shares)	6,765,645
Series A Preferred Stock [Member]
Preferred Stock, Dividend Rate, Percentage	10.00%
Preferred Stock, Shares Outstanding, Ending Balance (in shares)	407,240
Dividends, Preferred Stock, Cash	$ 20,000	$ 20,000
Series B Preferred Stock [Member]
Preferred Stock, Dividend Rate, Percentage	10.00%
Preferred Stock, Shares Outstanding, Ending Balance (in shares)	400,000
Convertible Preferred Stock [Member]
Preferred Stock, Par or Stated Value Per Share (in dollars per share)	$ 11.931
Convertible Preferred Stock, Shares Issued upon Conversion (in shares)	1
Preferred Stock, Dividends Per Share, Declared (in dollars per share)	$ 0
Preferred Stock, Liquidation Preference Per Share (in dollars per share)	$ 12
Preferred Stock, Shares Outstanding, Ending Balance (in shares)	33,855
Series 2003 Convertible Preferred Stock [Member]
Preferred Stock, Shares Authorized (in shares)	500
Preferred Stock, Par or Stated Value Per Share (in dollars per share)	$ 0.025
Preferred Stock, Liquidation Preference Per Share (in dollars per share)	$ 15.50
Preferred Stock, Shares Outstanding, Ending Balance (in shares)	500	500
Preferred Stock, Shares Issued, Total (in shares)			967,742
Sale of Stock, Price Per Share (in dollars per share)			$ 16.60
Common Class A [Member]
Voting Rights, Percentage of Vote Per Share	0.05%
Common Stock, Capital Shares Reserved for Future Issuance (in shares)	34,355	35,855
Treasury Stock, Value, Acquired, Cost Method	$ 4,400,000
Treasury Stock, Shares, Acquired (in shares)	89,731
Common Class B [Member]
Stock Issued During Period, Profit Sharing Bonus Plan (in shares)	0

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Note 10 - Retirement Plans (Details Textual) - USD ($) $ in Thousands	12 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Mar. 31, 2019
Increase Decrease In Unfunded status	$ 138,600
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss) Arising During Period, after Tax	(59,800)
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss) Arising During Period, Tax	(19,900)
Defined Benefit Plan, Plan Assets, Amount, Ending Balance	348,914	$ 202,485	$ 233,112
Defined Benefit Plan, Plan Assets, Increase (Decrease) for Actual Return (Loss)	103,166	(46,325)
Defined Benefit Plan, Plan Assets, Contributions by Employer	$ 73,000	$ 26,000
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Expected Long-term Rate of Return on Plan Assets	7.25%	7.25%
Defined Contribution Plan, Employer Discretionary Contribution Amount	$ 1,600	$ 400

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Note 10 - Retirement Plans - Statement of Unfunded Status (Details) - USD ($) $ in Thousands	12 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Benefit obligation at beginning of year	$ 278,227	$ 250,461
Service cost	9,326	9,244
Interest cost	9,266	9,064
Liability gain due to curtailment	0	(1,114)
Actuarial loss	17,712	20,146
Benefit payments and expenses	(28,468)	(9,574)
Benefit obligation at end of year	286,063	278,227
Fair value of plan assets at beginning of year	202,485	233,112
Actual return on plan assets	103,166	(46,325)
Employer contributions	73,000	26,000
Benefit payments and expenses	(29,737)	(10,302)
Fair value of plan assets at end of year	348,914	202,485
Funded (Unfunded) Status	$ 62,851	$ (75,742)

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Note 10 - Retirement Plans - Amounts Recognized in Accumulated Other Comprehensive (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Mar. 31, 2020
Prior service cost	$ (258)	$ (349)
Net loss	(26,265)	(105,866)
Accumulated other comprehensive pre-tax loss	$ (26,523)	$ (106,215)

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Note 10 - Retirement Plans - Pension and Post Retirement Plan Adjustments (Details) $ in Thousands	12 Months Ended
	Mar. 31, 2021 USD ($)
Balance	$ 394,364
Other comprehensive income	60,153
Balance	577,815
Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member]
Balance	(79,220)
Balance	$ (19,067)

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Note 10 - Retirement Plans - Net Periodic Benefit Cost (Details) - USD ($) $ in Thousands	12 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Service cost including administration	$ 10,627	$ 9,935
Interest cost	9,266	9,064
Expected return on plan assets	(15,804)	(16,746)
Amortization of net loss	9,919	579
Prior service cost	91	120
Net periodic benefit cost	14,099	2,952
Settlement/curtailment expense	0	118
Net periodic benefit cost with curtailment	$ 14,099	$ 3,070

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Note 10 - Retirement Plans - Assumptions Used to Measure (Details)	12 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Discount rate - projected benefit obligation	3.43%	3.69%
Rate of compensation increase	3.00%	3.00%
Discount rate - benefit obligations	3.69%	4.14%
Discount rate - interest cost	3.30%	3.74%
Discount rate - service cost	3.87%	4.34%
Discount rate - interest on service cost	3.43%	3.69%
Expected return on plan assets	7.25%	7.25%
Rate of compensation increase	3.00%	3.00%

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Note 10 - Retirement Plans - Plan Assets (Details)	Mar. 31, 2021	Mar. 31, 2020
Target Allocation	100.00%
Percentage of Plan Assets	100.00%	100.00%
Defined Benefit Plan, Equity Securities [Member]
Target Allocation	50.00%
Percentage of Plan Assets	48.00%	97.00%
Defined Benefit Plan, Debt Security [Member]
Target Allocation	50.00%
Percentage of Plan Assets	50.00%	0.00%
Defined Benefit Plan, Real Estate [Member]
Target Allocation	0.00%
Percentage of Plan Assets	0.00%	0.00%
Defined Benefit Plan, Cash [Member]
Target Allocation	0.00%
Percentage of Plan Assets	2.00%	3.00%

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Note 10 - Retirement Plans - Expected Contributions (Details) $ in Thousands	Mar. 31, 2021 USD ($)
Expected Employer Contributions	$ 0
Expected Employee Contributions	$ 0

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Note 10 - Retirement Plans - Estimated Future Benefit Payments (Details) $ in Thousands	Mar. 31, 2021 USD ($)
2022	$ 11,178
2023	11,290
2024	11,913
2025	12,640
2026	13,342
2027-2031	$ 75,496

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Note 11 - Fair Value of Financial Instruments - Carrying Amount and Estimated Fair Values of Financial Instruments (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Mar. 31, 2020
Reported Value Measurement [Member]
Long-term debt, including current portion	$ 98,585	$ 217,581
Estimate of Fair Value Measurement [Member]
Long-term debt, including current portion	$ 97,226	$ 217,559

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Note 12 - Inventories (Details Textual) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Inventory, LIFO Reserve, Effect on Income, Net, Total	$ 11,700	$ 12,800
Effect Of LIFO Earnings Per Share Basic (in dollars per share)	$ 1.29	$ 1.38
Effect Of LIFO Earnings Per Share Diluted (in dollars per share)	$ 1.28	$ 1.37
Effect of LIFO Inventory Liquidation on Income	$ 0	$ 6,600

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Note 12 - Inventories - Inventories by Category and Impact of Using LIFO Method (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Mar. 31, 2020
Finished products	$ 317,654	$ 351,251
In process	25,175	31,173
Raw materials and supplies	128,987	173,474
Total	471,816	555,898
Less excess of FIFO cost over LIFO cost	128,672	144,267
Inventories	$ 343,144	$ 411,631

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Note 13 - Other Operating Income and Expense (Details Textual) - USD ($) $ in Millions	12 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Other Operating Income (Expense) [Member]
Pension and Other Postretirement Benefits Cost (Reversal of Cost), Total	$ 1.2
Gain (Loss) on Disposition of Property Plant Equipment, Total		$ 1.2
Other Operating Income (Expense) [Member] | Midwest Plant [Member]
Gain (Loss) On Sale of Plant		3.3
Other Operating Income (Expense) [Member] | Northwest Plant [Member]
Gain (Loss) On Sale of Plant		$ 8.2
Closing of Midwest and Northwest Plants [Member] | Employee Severance [Member]
Restructuring Costs, Total	0.2
Prepared Foods Business [Member]
Gain (Loss) on Disposition of Business	34.8
Disposal of Equipment from Sold Northwest Plan [Member]
Disposal Group, Not Discontinued Operation, Gain (Loss) on Disposal	(0.8)
Gain (Loss) on Disposition of Property Plant Equipment, Excluding Oil and Gas Property and Timber Property	(0.4)
Disposal of Equipment Previously Held for Sale [Member]
Disposal Group, Not Discontinued Operation, Gain (Loss) on Disposal	$ (3.2)

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Note 14 - Segment Information (Details Textual)	12 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Number of Reportable Segments	3
Revenue Benchmark [Member] | Geographic Concentration Risk [Member] | Non-US [Member]
Concentration Risk, Percentage	6.50%	6.50%

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Note 14 - Segment Information - Segment Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Net sales	$ 1,467,644	$ 1,335,769
Operating income (loss)	181,067	70,524
Identifiable assets	909,348	909,309
Capital expenditures	71,431	65,686
Depreciation and amortization	32,375	30,933
Continuing Operations [Member]
Net sales	1,467,644	1,335,769
Operating income (loss)	181,067
Identifiable assets	908,232	908,068
Capital expenditures	71,450	66,440
Depreciation and amortization	32,376	30,933
Fruit and Vegetable Segment [Member] | Continuing Operations [Member]
Net sales	1,363,263	1,202,528
Operating income (loss)	175,810	65,921
Identifiable assets	853,602	853,438
Capital expenditures	67,963	63,543
Depreciation and amortization	29,534	26,486
Prepared Foods [Member] | Continuing Operations [Member]
Net sales	71,866	105,044
Operating income (loss)	1,967	3,774
Identifiable assets	51,803	51,803
Capital expenditures	1,451	2,122
Depreciation and amortization	2,299	3,564
Snack Segment [Member] | Continuing Operations [Member]
Net sales	10,999	11,475
Operating income (loss)	705	837
Identifiable assets	2,054	2,054
Capital expenditures	508	19
Depreciation and amortization	194	207
Corporate and Other [Member] | Continuing Operations [Member]
Net sales	21,516	16,722
Operating income (loss)	2,585	(8)
Identifiable assets	773	773
Capital expenditures	1,528	756
Depreciation and amortization	$ 349	$ 676

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Note 16 - Plant Restructuring (Details Textual) - USD ($) $ in Thousands	12 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Restructuring Charges, Total	$ 182	$ 5,626
Closing of Midwest and Northwest Plants [Member]
Restructuring Charges, Total		7,000
Restructuring Credit For Reduced Lease Liability		1,900
Closing of Midwest and Northwest Plants [Member] | Employee Severance [Member]
Restructuring Charges, Total	$ 200	1,200
Closing of Midwest and Northwest Plants [Member] | Lease Impairments [Member]
Restructuring Charges, Total		5,300
Closing of Midwest and Northwest Plants [Member] | Equipment Moves [Member]
Restructuring Charges, Total		$ 2,400

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Note 16 - Plant Restructuring - Restructuring Reserve (Details) - USD ($) $ in Thousands	12 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Balance	$ 202	$ 226
Charge to expense	182	7,046
Cash payments/write offs	(384)	(7,070)
Balance	0	202
Employee Severance [Member]
Balance	202	225
Charge to expense	227	1,229
Cash payments/write offs	(429)	(1,252)
Balance	0	202
Other Restructuring [Member]
Balance	0	1
Charge to expense	(45)	5,817
Cash payments/write offs	45	(5,818)
Balance	$ 0	$ 0

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Note 17 - Related Party Transactions (Details Textual) - USD ($) $ in Millions	12 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Director [Member] | Vegetables Supply [Member]
Related Party Transaction, Amounts of Transaction	$ 2.2	$ 2.3
Related Party Foudation [Member] | Charitable Contributions [Member]
Related Party Transaction, Amounts of Transaction	$ 1.0	$ 0.3

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Schedule II - Valuation and Qualifying Accounts - Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands		12 Months Ended
		Mar. 31, 2021	Mar. 31, 2020
SEC Schedule, 12-09, Allowance, Credit Loss [Member]
Balance at beginning of period		$ 1,598	$ 57
Charged/(credited) to income		(1,304)	1,627
Deductions from reserve	[1]	(45)	86
Allowance for doubtful accounts		339	1,598
Charged to other accounts
SEC Schedule, 12-09, Valuation Allowance, Deferred Tax Asset [Member]
Balance at beginning of period		4,473	3,988
Charged/(credited) to income		201	485
Deductions from reserve
Allowance for doubtful accounts		4,674	4,473
Charged to other accounts

[1] Accounts written off, net of recoveries.