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6. LONG TERM DEBT

12 Months Ended

Dec. 31, 2012

Long-term debt consists of:

	December 31,
	2012			2011

Northwest Farm Credit Services Loan #1	$	1,377,827		$	1,437,557
Northwest Farm Credit Services Loan #2		1,306,945			1,370,215
Northwest Farm Credit Services Loan #3		1,331,999			1,386,145
Other long term debt		9,467			14,673

		4,026,238			4,208,590
Current portion		(209,327	)		(197,936	)

	$	3,816,911		$	4,010,654

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 5.90%, 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 6.70%, 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, 2012, 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 for the years ending December 31:

2013	$	209,327
2014		221,298
2015		232,115
2016		247,166
2017		263,194
Thereafter		2,853,138

	$	4,026,238

The weighted-average interest rates on the aforementioned borrowings for the fiscal years ended December 31, 2012 and 2011 was 6.3%.