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LONG-TERM DEBT

12 Months Ended

Dec. 31, 2011

NOTE 6 – LONG-TERM DEBT

Long-term debt consists of:

	December 31,
	2011			2010

Northwest Farm Credit Services Loan #1	$	1,437,557		$	332,359
Northwest Farm Credit Services Loan #2		1,370,215			1,491,753
Northwest Farm Credit Services Loan #3		1,386,145			1,434,846
Other long term debt		14,673			20,354

		4,208,590			3,279,312
Less current portion		(197,936	)		(452,226	)

	$	4,010,654		$	2,827,086

The Company has three agreements with Northwest Farm Credit Services (“FCS”). Loan #1 requires monthly payments of $12,266, bears interest at a rate of 5.9%, is collateralized by real estate and equipment, and matures in 2026. Loan #2 requires monthly payments of $13,232, bears interest at a rate of 6.7%, is collateralized by real estate and equipment, and matures in 2024. Loan #3 requires monthly payments of $12,004, bears interest at a rate of 6.25%, is collateralized by real estate and equipment, and matures in 2026.

The loan agreements contain covenants, which require the Company to maintain certain financial ratios and balances. At December 31, 2011, the Company was in compliance with these covenants. In the event of future noncompliance with the Company’s debt covenants, FCS would have the right to declare the Company in default, and at FCS’ option without notice or demand, the unpaid principal balance of the loan, plus all accrued unpaid interest thereon and all other amounts due shall immediately become due and payable.

Future minimum principal payments of long-term debt mature as follows:

Year ending December 31,	2012	$	197,936
	2013		210,395
	2014		221,298
	2015		232,115
	2016		247,166
	Thereafter		3,099,680

		$	4,208,590

The weighted-average interest rates on the aforementioned borrowings for the fiscal years ended December 31, 2011 and 2010 are 6.3% and 6.1%, respectively.