SHORT-TERM AND LONG-TERM DEBT

12 Months Ended

Dec. 31, 2011

6.	SHORT-TERM AND LONG-TERM DEBT

The Company had no outstanding balance on its line of credit at December 31, 2011 and December 31, 2010.

Long-term debt consists of the following at December 31:


($ in thousands)	2011			2010
Note payable to a bank	$	290		$	325
Less current portion		(37	)		(35	)

	$	253		$	290

We have a long-term revolving line of credit of $30,000,000 that, as of December 31, 2011, had no outstanding balance. At the Company’s option, the interest rate on this line of credit can be fixed at 2.50% over a selected LIBOR rate or can be fixed at 2.25% above LIBOR for a fixed rate term. During the term of this credit facility (which matures in October 2013), we can borrow at any time and partially or wholly repay any outstanding borrowings and then re-borrow, as necessary. Under the terms of the line of credit, we must maintain tangible net worth, defined as total equity, including noncontrolling interest, plus debt less intangible assets, of not less than $175,000,000 and liquid assets of not less than $25,000,000. At December 31, 2011 our tangible net worth was $300,439,000 and liquid assets were $86,938,000. A portion of our farm acreage secures this line of credit. The outstanding long-term debt, less current portion of $37,000, is $253,000 at December 31, 2011. This debt is being used to provide long-term financing for a building being leased to Starbucks and the debt is secured by the leased building and land, which has a book value of $337,000. The balance of the long-term debt instrument listed above approximates the fair value of the instrument.

Interest incurred and paid was $178,000, $180,000, and $306,000, for the years ended December 31, 2011, 2010, and 2009, respectively. The Company’s capitalized interest costs were $178,000, $171,000, and $236,000, for the years ended December 31, 2011, 2010, and 2009, respectively.

Maturities of long-term debt at December 31, 2011 are $37,000 in 2012, $40,000 in 2013, $40,000 in 2014, $46,000 in 2015, $49,000 in 2016, and $75,000 thereafter. This maturity schedule reflects the payments related to both the long-term debt and the current portion of long-term debt.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

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