Annual report pursuant to Section 13 and 15(d)

Borrowings (Tables)

v3.22.0.1
Borrowings (Tables)
 12 Months Ended
Dec. 31, 2021
Debt Disclosure [Abstract]  
Summary of Borrowings
Our borrowings as of December 31, 2021 and 2020 are summarized below (dollars in thousands):
  Carrying Value as of As of December 31, 2021
December 31, 2021 December 31, 2020
Stated Interest
Rates(1)
(Range; Wtd Avg)
 Maturity Dates
(Range; Wtd Avg)
Notes and bonds payable:
Fixed-rate notes payable $ 583,807  $ 492,182 
2.44%–5.70%; 3.73%
2/14/2022–7/1/2051; October 2032
Variable-rate notes payable(2)
1,714  45,525 
3.00%–3.00%; 3.00%
10/1/2040–10/1/2040; October 2040
Fixed-rate bonds payable 86,052  89,883 
2.13%–4.57%; 3.45%
1/12/2022–12/30/2030; November 2024
Total notes and bonds payable 671,573  627,590 
Debt issuance costs – notes and bonds payable (3,691) (3,629) N/A N/A
Notes and bonds payable, net $ 667,882  $ 623,961 
Variable-rate revolving lines of credit $ 100  $ 100  2.50% 4/5/2024
Total borrowings, net $ 667,982  $ 624,061 
(1)Where applicable, stated interest rates are before interest patronage (as described below).
(2)Notes were fixed subsequent to the respective fiscal year ends.
The following table summarizes the pertinent terms of the 2020 MetLife Facility as of December 31, 2021 (dollars in thousands, except for footnotes):
Issuance Aggregate
Commitment		 Maturity
Dates		 Principal
Outstanding		   Interest Rate Terms   Undrawn
Commitment		  
2020 MetLife Term Note $ 75,000 
(1)
 1/5/2030 $ 36,900 
2.75%, fixed through 1/4/2030
(2)
 $ 38,100 
(3)
MetLife Lines of Credit 75,000  4/5/2024 100 
3-month LIBOR + 2.00%
(4)
 74,900 
(3)
Total principal outstanding $ 37,000    
(1)If the aggregate commitment under the 2020 MetLife Term Note is not fully utilized by December 31, 2022, MetLife has no obligation to disburse the additional funds under the 2020 MetLife Term Note.
(2)Interest rates on future disbursements under the 2020 MetLife Term Note will be based on prevailing market rates at the time of such disbursements. In addition, through December 31, 2022, the 2020 MetLife Term Note is also subject to an unused fee ranging from 0.10% to 0.20% on undrawn amounts (based on the balance drawn under the 2020 MetLife Term Note).
(3)Based on the properties that were pledged as collateral under the 2020 MetLife Facility, as of December 31, 2021, the maximum additional amount we could draw under the facility was approximately $58.4 million.
(4)The interest rate on the MetLife Lines of Credit is subject to a minimum annualized rate of 2.50%, plus an unused fee ranging from 0.10% to 0.20% on undrawn amounts (based on the balance drawn under each line of credit).
During the year ended December 31, 2021, we issued two new bonds under the 2020 Farmer Mac Facility, the pertinent terms of which are summarized in the following table (dollars in thousands):
Date of Issuance Amount Maturity Dates Principal Amortization Stated Interest Rate Interest Rate Terms
2/4/2021 $ 2,460  10/31/2028 25.0 years 3.13% Fixed throughout term
11/10/2021 1,290  12/30/2030 25.0 years 3.32% Fixed throughout term
During the year ended December 31, 2021, we entered into the following loan agreements with Farm Credit (dollars in thousands):
Issuer Date of
Issuance		 Amount Maturity
Date		 Principal
Amortization
Stated Interest Rate(1)
Interest Rate Terms
Farm Credit West, FLCA(2)
1/28/2021 $ 2,073  11/1/2045 24.5 years 3.23% Fixed through 12/31/2027 (variable thereafter)
Mid Atlantic Farm Credit, ACA 3/3/2021 960  6/1/2045 24.4 years 3.80% Fixed through 1/31/2031 (variable thereafter)
GreenStone Farm Credit Services, FLCA 8/17/2021 7,980  8/1/2046 25.5 years 4.00% Fixed through 7/31/2031 (variable thereafter)
Golden State Farm Credit, FLCA 9/28/2021 15,960  7/1/2051 30.0 years 3.75% Fixed through 9/30/2031 (variable thereafter)
Golden State Farm Credit, FLCA 9/28/2021 6,840  7/1/2046 25.0 years 3.75% Fixed through 9/30/2031 (variable thereafter)
Farm Credit Florida, ACA 12/13/2021 3,174  1/1/2047 25.0 years 4.13% Fixed through 12/31/2031 (variable thereafter)
(1)Stated rate is before interest patronage, as described below.
(2)Loan proceeds used to repay a previously-issued loan with an outstanding balance of approximately $1.4 million and a stated interest rate of 4.99%.
Subsequent to the year ended December 31, 2021, we entered into certain agreements to provide for current and future financings. The terms of these agreements are summarized in the following table (dollars in thousands):
Issuer Date of Issuance Amount Maturity Dates Principal Amortization
Stated Interest Rate(1)
Interest Rate Terms
Farmer Mac 1/11/2022 $ 1,980  12/30/2030 20.0 years 3.31% Fixed throughout term
Northwest Farm Credit Services, FLCA 2/01/2022 1,442  2/01/2032 20.1 years 4.65% Fixed throughout term
(1)Where applicable, stated rate is before interest patronage, as described in Note 4 “Borrowings—Farm Credit Notes Payable—Interest Patronage.”
Schedule of Borrowings by Type
During the year ended December 31, 2021, we entered into loan agreements with certain other lenders, the terms of which are summarized in the following table (dollars in thousands):
Lender Date of Issuance Amount Maturity Date Principal Amortization Stated Interest Rate Interest Rate Terms
Rabo AgriFinance, LLC(1)
3/11/2021 $ 3,780  12/1/2030 25.0 years 3.27% Fixed throughout term
Rabo AgriFinance, LLC(1)
3/11/2021 630  12/1/2022 None
(interest only)		 2.44% Fixed throughout term
Rabo AgriFinance, LLC(1)
11/10/2021 22,620  12/1/2030 25.0 years 3.42% Fixed throughout term
(1)Loans were issued as variable-rate loans but were subsequently fixed through our entry into interest rate swap agreements with the lender (as counterparty).
The following table summarizes our interest rate swaps as of December 31, 2021 and 2020 (dollars in thousands):
Period Aggregate Notional Amount Aggregate Fair Value Asset Aggregate Fair Value Liability
As of December 31, 2021 $ 82,980  $ —  $ (1,036)
As of December 31, 2020 14,077  —  (1,500)
The following table presents the amount of income or loss recognized in comprehensive income within our consolidated financial statements for the years ended December 31, 2021 and 2020 (dollars in thousands):
For the Year Ended December 31, 2021 For the Year Ended December 31, 2020
Derivative in cash flow hedging relationship:
Interest rate swaps $ 464  $ (1,110)
Total $ 464  $ (1,110)
The following table summarizes certain information regarding our derivative instruments as of December 31, 2021 and 2020 (dollars in thousands):
Derivative Liability Fair Value
Derivative Type Balance Sheet Location December 31, 2021 December 31, 2020
Derivatives Designated as Hedging Instruments:
Interest rate swaps Other liabilities, net $ (1,036) $ (1,500)
Total $ (1,036) $ (1,500)
Schedule of Aggregate Maturities Scheduled principal payments of our aggregate notes and bonds payable as of December 31, 2021, for the succeeding years are as follows (dollars in thousands):
For the Fiscal Years Ending December 31, Scheduled
Principal Payments
2022 $ 51,534 
2023 45,696 
2024 41,846 
2025 38,889 
2026 18,043 
Thereafter 475,565 
$ 671,573