Annual report pursuant to Section 13 and 15(d)

Borrowings (Tables)

v3.20.4
Borrowings (Tables)
 12 Months Ended
Dec. 31, 2020
Summary of Borrowings Our borrowings as of December 31, 2020 and 2019 are summarized below (dollars in thousands):
  Carrying Value as of   As of December 31, 2020
December 31, 2020   December 31, 2019  
Stated Interest
Rates(1)
(Range; Wtd Avg)
   Maturity Dates
(Range; Wtd Avg)
Notes and bonds payable:
Fixed-rate notes payable $ 492,182  $ 394,569 
2.45%–5.70%; 3.78%
2/14/2022–11/1/2045; December 2031
Variable-rate notes payable(2)
45,525  — 
2.14%–3.00%; 2.18%
 12/1/2022–11/1/2045; July 2030
Fixed-rate bonds payable 89,883  90,380 
2.13%–4.57%; 3.50%
8/17/2021–10/31/2028; June 2024
Total notes and bonds payable 627,590  484,949 
Debt issuance costs – notes and bonds payable (3,629) (3,120) N/A N/A
Notes and bonds payable, net $ 623,961  $ 481,829 
Variable-rate revolving lines of credit $ 100  $ 100  2.50% 4/5/2024
Total borrowings, net $ 624,061  $ 481,929 
(1)Where applicable, stated interest rates are before interest patronage (as described below).
(2)Notes were fixed subsequent to December 31, 2020; see Note 11, “Subsequent Events.”
Subsequent to the year ended December 31, 2020, we entered into the following loan agreements with 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
Farm Credit West, FLCA 1/28/2021 $ 2,073  11/1/2045 24.8 years 3.23% Fixed through December 31, 2027 (variable thereafter)
Farmer Mac 2/4/2021 2,460  10/31/2028 25.0 years 3.13% Fixed throughout term
Subsequent to December 31, 2020, we fixed the interest rates on these loans, as summarized in the following table (dollars in thousands):
Lender Date of Fixed
Agreement		 Loan
Amount		 Original Variable Interest Rate Terms New Fixed Interest Rate Terms
Farm Credit West, FLCA 1/8/2021 $ 2,160 
3.00%, subject to change monthly
3.70%, fixed through 1/31/2031; variable thereafter
Rabo AgriFinance, LLC(1)
1/15/2021 37,170 
1-month LIBOR + 2.00%
3.21%; fixed throughout term
Rabo AgriFinance, LLC(1)
1/15/2021 6,195 
1-month LIBOR + 2.00%
2.46%; fixed throughout term
(1)Interest rates were fixed via our entry into interest rate swap agreements.
Schedule of Borrowings by Type
During the year ended December 31, 2020, we entered into loan agreements with various 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
Conterra Agricultural Capital, LLC 6/8/2020 $ 2,100  7/1/2027 30.0 years 3.40% Fixed throughout term
PGIM Real Estate Finance, LLC 10/1/2020 19,042  7/1/2028 25.0 years 2.47% Fixed throughout term
PGIM Real Estate Finance, LLC 10/1/2020 19,096  7/1/2028 25.0 years 2.45% Fixed throughout term
AgAmerica Lending, LLC 10/23/2020 2,259  1/1/2028 30.0 years 3.50% Fixed throughout term
PGIM Real Estate Finance, LLC 12/15/2020 12,450  7/1/2028 None
(interest only)		 2.98% Fixed throughout term
Rabo AgriFinance, LLC(1)
12/24/2020 37,170  12/1/2030 25.0 years 2.14%
1-month LIBOR + 2.00%(1)
Rabo AgriFinance, LLC(1)
12/24/2020 6,195  12/1/2022 None
(interest only)		 2.14%
1-month LIBOR + 2.00%(1)
(1)    Subsequent to December 31, 2020, we entered into fixed interest rate swap agreements for each of these loans. See Note 11, “Subsequent Events—Financing Activity—Borrowing Activity—Fixed Rate Conversions,” for additional information on these swap agreements.
Schedule of Aggregate Maturities
Scheduled principal payments of our aggregate notes and bonds payable as of December 31, 2020, for the succeeding years are as follows (dollars in thousands):
For the Fiscal Years Ending December 31, Scheduled
Principal Payments
2021 $ 19,848 
2022 51,053 
2023 43,755 
2024 39,873 
2025 36,881 
Thereafter 436,180 
$ 627,590 
Interest Rate Swap  
Schedule of Borrowings by Type The following table summarizes our interest rate swaps as of December 31, 2020 and 2019 (dollars in thousands):
Period Aggregate Notional Amount Aggregate Fair Value Asset Aggregate Fair Value Liability
As of December 31, 2020 $ 14,077  $ —  $ 1,500 
As of December 31, 2019 14,298  —  390 

The following table presents the amount of loss recognized in comprehensive income within our consolidated financial statements for the years ended December 31, 2020 and 2019 (dollars in thousands):
For the Year Ended December 31, 2020 For the Year Ended December 31, 2019
Derivative in cash flow hedging relationship:
Interest rate swaps $ (1,110) $ (390)
Total $ (1,110) $ (390)

The following table summarizes certain information regarding our derivative instruments as of December 31, 2020 and 2019 (dollars in thousands):
Derivative Liability Fair Value
Derivative Type Balance Sheet Location December 31, 2020 December 31, 2019
Derivatives Designated as Hedging Instruments:
Interest rate swaps Other liabilities, net $ 1,500  $ 390 
Total $ 1,500  $ 390 
MetLife Credit Facility  
Summary of Borrowings
The following table summarizes the pertinent terms of the New MetLife Facility as of December 31, 2020 (dollars in thousands, except for footnotes):
Issuance Aggregate
Commitment		 Maturity
Dates		 Principal
Outstanding		   Interest Rate Terms   Undrawn
Commitment		  
New MetLife Term Note $ 75,000 
(1)
 1/5/2030 $ 36,900  2.75%
(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 New MetLife Term Note is not fully utilized by December 31, 2022, MetLife has the option to be relieved of its obligation to disburse the additional funds under the New MetLife Term Note.
(2)Interest rates on future disbursements under the New MetLife Term Note will be based on prevailing market rates at the time of such disbursements. In addition, through December 31, 2022, the New 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 New MetLife Term Note).
(3)Based on the properties that were pledged as collateral under the MetLife Facility, as of December 31, 2020, the maximum additional amount we could draw under the facility was approximately $24.2 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).
Farm Credit Notes Payable  
Summary of Borrowings During the year ended December 31, 2020, 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
Premier Farm Credit, FLCA 5/14/2020 $ 4,500  1/1/2045 24.6 years 4.00% Fixed through December 31, 2029 (variable thereafter)
Farm Credit West, FLCA 6/24/2020 600  5/1/2044 24.2 years 3.00% Fixed through July 31, 2026 (variable thereafter)
Farm Credit West, FLCA 6/24/2020 600  5/1/2044 24.2 years 3.00% Fixed through August 31, 2026 (variable thereafter)
Farm Credit West, FLCA 6/25/2020 8,500  11/1/2045 25.0 years 3.75% Fixed through June 30, 2030 (variable thereafter)
Farm Credit of the Virginias, ACA 8/31/2020 4,481  9/1/2030 25.0 years 3.99% Fixed throughout term
Farm Credit West, FLCA(2)
12/10/2020 2,160  11/1/2045 24.5 years 3.70% Fixed through January 31, 2031 (variable thereafter)
(1)Stated rate is before interest patronage, as described below.
(2)Loan was fixed subsequent to December 31, 2020; see Note 11, “Subsequent Events—Financing Activity—Borrowing Activity—Fixed Rate Conversions.”
Farmer Mac Facility  
Schedule of Borrowings by Type The pertinent terms of the three amended and restated bonds are summarized in the table below (dollars in thousands):
Date of Issuance Amount Maturity Dates Principal Amortization Stated Interest Rate Interest Rate Terms
1/10/2020 $ 8,100  1/12/2024 None
(interest only)		 2.66% Fixed throughout term
12/11/2020 3,180  7/31/2023 None
(interest only)		 2.13% Fixed throughout term
12/11/2020 10,673  10/31/2028 None
(interest only)		 3.25% Fixed throughout term