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6. LONG TERM DEBT

12 Months Ended

Dec. 31, 2014

Long-term debt consists of:

	December 31,
	2014			2013

Northwest Farm Credit Services Loan #1	$	1,238,256		$	1,310,084
Northwest Farm Credit Services Loan #2		1,154,945			1,233,472
Northwest Farm Credit Services Loan #3		1,202,799			1,269,402
Northwest Farm Credit Services Loan #4		1,906,294			2,000,000
Other long term debt		-			3,787

		5,502,294			5,816,745
Current portion		(329,255	)		(306,353	)

	$	5,173,039		$	5,510,392

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, 2014, 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:

2015	$	329,255
2016		349,002
2017		369,955
2018		392,189
2019		415,781
Thereafter		3,646,112

	$	5,502,294

The weighted-average interest rates on the aforementioned borrowings for the fiscal years ended December 31, 2014 and 2013 was 5.75% and 5.75% respectively.