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6. LONG TERM DEBT
 12 Months Ended
Dec. 31, 2013
Debt Disclosure [Abstract]  
NOTE 6. LONG TERM DEBT

Long-term debt consists of:

 

    December 31,  
    2013     2012  
             
Northwest Farm Credit Services Loan #1   $ 1,310,084     $ 1,377,827  
Northwest Farm Credit Services Loan #2     1,233,472       1,306,945  
Northwest Farm Credit Services Loan #3     1,269,402       1,331,999  
Northwest Farm Credit Services Loan #4     2,000,000       -  
Other long term debt     3,787       9,467  
                 
      5,816,745       4,026,238  
Current portion     (306,353 )     (209,327 )
                 
    $ 5,510,392     $ 3,816,911  

 

The Company has four 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. Loan #4 requires monthly payments of $15,556, bears interest at a rate of 4.75%, is collateralized by real estate and equipment, and matures in 2028.

 

The loan agreements contain covenants, which require the Company to maintain certain financial ratios and balances. At December 31, 2013, 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:

 

2014   $ 306,353  
2015     328,765  
2016     348,487  
2017     369,413  
2018     391,619  
Thereafter     4,072,108  
         
    $ 5,816,745  

 

The weighted-average interest rates on the aforementioned borrowings for the fiscal years ended December 31, 2013 and 2012 was 5.75% and 6.3% respectively.