Quarterly report pursuant to Section 13 or 15(d)

BORROWINGS (Tables)

v3.21.2
BORROWINGS (Tables)
 9 Months Ended
Sep. 30, 2021
Debt Disclosure [Abstract]  
Summary of Borrowings
Our borrowings as of September 30, 2021, and December 31, 2020, are summarized below (dollars in thousands):
  Carrying Value as of   As of September 30, 2021
September 30, 2021 December 31, 2020
Stated Interest
Rates(1)
(Range; Wtd. Avg)
 Maturity Dates
(Range; Wtd. Avg)
Notes and bonds payable:
Fixed-rate notes payable $ 564,695  $ 492,182 
2.44%–5.70%; 3.73%
 2/14/2022–7/1/2051; November 2032
Variable-rate notes payable —  45,525  N/A N/A
Fixed-rate bonds payable 84,762  89,883 
2.13%–4.57%; 3.45%
 1/12/2022–10/31/2028; October 2024
Total notes and bonds payable 649,457  627,590 
Debt issuance costs – notes and bonds payable (3,490) (3,629) N/A N/A
Notes and bonds payable, net $ 645,967  $ 623,961 
Variable-rate revolving lines of credit $ 100  $ 100  2.50% 4/5/2024
Total borrowings, net $ 646,067  $ 624,061 
(1)Where applicable, stated interest rates are before interest patronage (as described below).
The following table summarizes the pertinent terms of the New MetLife Facility as of September 30, 2021 (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%, 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 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 thereunder.
(2)Interest rates on any 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 New MetLife Facility, as of September 30, 2021, 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).
During the nine months ended September 30, 2021, we issued one new bond under the Farmer Mac Facility, the pertinent terms of which are summarized in the following table (dollars in thousands):
Date of Issuance Amount Maturity Date Principal Amortization Stated
Interest Rate		 Interest Rate Terms
2/4/2021 $ 2,460  10/31/2028 25.0 years 3.13% Fixed throughout term
During the nine months ended September 30, 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 24.8 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)
(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%.
During the nine months ended September 30, 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
(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).
Subsequent to the quarter ended September 30, 2021, we entered into certain agreements to provide for future financings. The terms of these agreements are summarized in the following table (dollars in thousands):
Issuer Expected Funding Period Amount
Stated Interest Rate(1)
Interest Rate Terms
Rabo AgriFinance, LLC Q4 2021 $ 22,620  3.42%
Fixed throughout term(2)
Farmer Mac Q4 2021 1,290  3.32% Fixed throughout term
American AgCredit
TBD(3)
2,990  3.00% Variable, as determined by lender
(1)Where applicable, stated rate is before interest patronage, as described in Note 4 “Borrowings—Farm Credit Notes Payable—Interest Patronage.”
(2)Pursuant to an interest rate swap agreement entered into with Rabo AgriFinance, LLC, the loan will bear interest at a fixed rate of 3.42% through November 2030.
(3)A portion of this loan is tied to an ongoing development project and will not be fully available to us until the project is complete. The completion of the development project and the receipt of these loan proceeds are both expected to occur by May 2023.
Schedule of Aggregate Maturities
Scheduled principal payments of our aggregate notes and bonds payable as of September 30, 2021, for the succeeding years are as follows (dollars in thousands):
Period Scheduled Principal Payments
For the remaining three months ending December 31: 2021 $ 2,494 
For the fiscal years ending December 31: 2022 52,622 
2023 44,682 
2024 40,828 
2025 37,866 
2026 17,016 
Thereafter 453,949 
$ 649,457 
Schedule of Borrowings by Type The following table summarizes our interest rate swap agreements as of September 30, 2021, and December 31, 2020 (dollars in thousands):
Period Aggregate Notional Amount Aggregate Fair Value Asset Aggregate Fair Value Liability
As of September 30, 2021 $ 61,632  $ —  $ (987)
As of December 31, 2020 14,077  —  (1,500)
The following table summarizes certain balance sheet information regarding our derivative instruments as of September 30, 2021, and December 31, 2020 (dollars in thousands):
Derivative Asset (Liability) Fair Value
Derivative Type Balance Sheet Location September 30, 2021 December 31, 2020
Derivatives Designated as Hedging Instruments:
Interest rate swaps Other liabilities, net $ (987) $ (1,500)
Total, net $ (987) $ (1,500)

The following table presents the amount of income (loss) recognized in comprehensive income within our condensed consolidated financial statements for the three and nine months ended September 30, 2021 and 2020 (dollars in thousands):
For the Three Months Ended September 30, For the Nine Months Ended September 30,
2021 2020 2021 2020
Derivative in cash flow hedging relationship:
Interest rate swaps $ 357  $ 95  $ 513  $ (1,331)
Total $ 357  $ 95  $ 513  $ (1,331)