6. Long-term obligations

Long-term obligations at fiscal year ends consist of the following (in thousands):


	July 31,			October 31,
	2011			2010
Farm Credit West, PCA, (FCW) term loan, bearing interest at 1.7%	$	14,751		$	—
FCW, term loan, bearing interest at 5.7%		5,200			6,500
Capital leases		4,699			958

		24,650			7,458
Less current portion		(5,368	)		(1,369	)

	$	19,282		$	6,089

See Note 11 for discussion regarding our acquisition of RFG. In conjunction with such acquisition, the Company and FCW entered into a Term Loan Agreement (“Term Agreement”), effective June 10, 2011. Under the terms of the Term Agreement, we were advanced $15 million for the purchase of RFG. Additionally, we are required to make 60 monthly principal and interest payments, in the amount billed, from July 1, 2011 to June 1, 2016. There is no prepayment penalty associated with this Term Agreement.

This Term Agreement also replaces in its entirety the original Term Loan Agreement dated June 1, 2005 by and between the Company and FCW, as previously disclosed in our Form 10-Q filed with the Securities and Exchange Commission on September 9, 2005. There was no significant change in terms between the original Term Loan Agreement and this new agreement. The Term Agreement contains certain financial covenants relating to Tangible Net Worth (as defined), and Funded Debt to Earnings Before Interest, Taxes, Depreciation and Amortization ratio (as defined).

In conjunction with the purchase of RFG, we assumed various capital leases related to machinery and equipment. These leases bear interest at a weighted average interest rate of approximately 4.0%. The total obligation acquired related to these capital leases were $3,969,000, with $1,075,000 being classified as in the current portion.

At July 31, 2011, annual debt payments are scheduled as follows (in thousands):


	Total
Year ending October 31:
2011	$	1,007
2012		5,381
2013		5,333
2014		5,246
2015		4,985
Thereafter		2,698

	$	24,650