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Line-of-Credit and Long-term Debt | 12 Months Ended
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Dec. 31, 2017
Debt Disclosure [Abstract] |
Line-of-Credit and Long-term Debt | LINE-OF-CREDIT AND LONG-TERM DEBT Debt consists of the following:
($ in thousands) | December 31, 2017 |  | December 31, 2016
Revolving line-of-credit | $ | — |  |  | $ | 7,700 |
Notes payable | 69,741 |  |  | 73,400 |
Other borrowings | 218 |  |  | 467 |
Total short-term and long-term debt | 69,959 |  |  | 81,567 |
Less line-of-credit and current maturities of long-term debt | (4,004 | ) |  | (11,553 | )
Less deferred loan costs | (139 | ) |  | (161 | )
Long-term debt, less current portion | $ | 65,816 |  |  | $ | 69,853 |
On October 13, 2014, the Company as borrower entered into an Amended and Restated Credit Agreement, a Term Note and a Revolving Line of Credit Note, with Wells Fargo, or collectively the Credit Facility. The Credit Facility adds a $70,000,000 term loan, or Term Loan to the existing $30,000,000 revolving line of credit, or RLC. Funds from the Term Loan were used to finance the Company's purchase of DMB TMV LLC’s interest in TMV LLC as disclosed in the Current Report on Form 8-K filed on July 16, 2014. The Term Loan had a $66,046,000 balance as of December 31, 2017. Any future borrowings under the RLC will be used for ongoing working capital requirements and other general corporate purposes. To maintain availability of funds under the RLC, undrawn amounts under the RLC will accrue a commitment fee of 10 basis points per annum. The Company's ability to borrow additional funds in the future under the RLC is subject to compliance with certain financial covenants and making certain representations and warranties. The RLC had no outstanding balance at December 31, 2017 and an outstanding balance of $7,700,000 as of December 31, 2016. At the Company’s option, the interest rate on this line of credit can float at 1.50% over a selected LIBOR rate or can be fixed at 1.50% above LIBOR for a fixed rate term. During the term of this credit facility (which matures in September 2019), we can borrow at any time and partially or wholly repay any outstanding borrowings and then re-borrow, as necessary. The interest rate per annum applicable to the Term Loan is LIBOR (as defined in the Term Note) plus a margin of 170 basis points. The interest rate for the term of the note has been fixed through the use of an interest rate swap at a rate of 4.11%. The Term Loan requires interest only payments for the first two years of the term and thereafter requires monthly amortization payments pursuant to a schedule set forth in the Term Note, with the final outstanding principal amount due October 5, 2024. The Company may make voluntary prepayments on the Term Loan at any time without penalty (excluding any applicable LIBOR or interest rate swap breakage costs). Each optional prepayment will be applied to reduce the most remote principal payment then unpaid. The Credit Facility is secured by the Company's farmland and farm assets, which include equipment, crops and crop receivables and the PEF power plant lease and lease site, and related accounts and other rights to payment and inventory. The Credit Facility requires compliance with three financial covenants: (a) total liabilities divided by tangible net worth not greater than 0.75 to 1.0 at each quarter end; (b) a debt service coverage ratio not less than 1.25 to 1.00 as of each quarter end on a rolling four quarter basis; and (c) maintain liquid assets equal to or greater than $20,000,000. At December 31, 2017 and 2016, we were in compliance with all financial covenants. The Credit Facility also contains customary negative covenants that limit the ability of the Company to, among other things, make capital expenditures, incur indebtedness and issue guaranties, consummate certain assets sales, acquisitions or mergers, make investments, pay dividends or repurchase stock, or incur liens on any assets. The Credit Facility contains customary events of default, including: failure to make required payments; failure to comply with terms of the Credit Facility; bankruptcy and insolvency; and a change in control without consent of the bank (which consent will not be unreasonably withheld). The Credit Facility contains other customary terms and conditions, including representations and warranties, which are typical for credit facilities of this type. The foregoing descriptions of the Credit Facility documents are qualified in their entirety by reference to each such material contract. Copies of the Credit Facility documents are filed as Exhibits 10.31 through 10.33 in the Current Report on Form 8-K filed October 17, 2014. The balance of the long-term debt instruments listed above approximates the fair value of the instrument. During the third quarter of 2013, we entered into a promissory note agreement with CMFG Life Insurance Company, to pay a principal amount of $4,750,000 with principal and interest due monthly starting on October 1, 2013. The interest rate on this promissory note is 4.25% per annum, with monthly principal and interest payments of $102,700 ending on September 1, 2028. The proceeds from this promissory note were used to eliminate debt that had been previously used to provide long-term financing for a building being leased to Starbucks and provide additional working capital for future investment. The current balance on the note is $3,695,000. The balance of this long-term debt instrument listed above approximates the fair value of the instrument. The following table summarizes our outstanding indebtedness and respective principal maturities as of December 31,
($ in thousands) |  | 2018 |  | 2019 |  | 2020 |  | 2021 |  | 2022 |  | Thereafter |  | Total
Term loan |  | $ | 3,563 |  |  | $ | 3,715 |  |  | $ | 3,881 |  |  | $ | 4,051 |  |  | $ | 4,221 |  |  | $ | 46,615 |  |  | $ | 66,046 |
Promissory note |  | 277 |  |  | 289 |  |  | 302 |  |  | 315 |  |  | 328 |  |  | 2,184 |  |  | 3,695 |
Other borrowings |  | 163 |  |  | 55 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 218 |
Total long-term debt |  | $ | 4,003 |  |  | $ | 4,059 |  |  | $ | 4,183 |  |  | $ | 4,366 |  |  | $ | 4,549 |  |  | $ | 48,799 |  |  | $ | 69,959 |

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- 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. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -URI http://asc.fasb.org/topic&trid=2208564 + Details
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