INTEREST, NET

Interest expense, net comprised the following for the years ended December 31:



(in thousands)	2019			2018			2017

Interest income - Partnership	$	3		$	132		$	3
Interest expense - Partnership	(3,717		)	(3,075		)	(2,644		)
Interest expense - Funds	(2,247		)	(2,247		)	(2,321		)
Capitalized interest - Partnership	164			295			491
Interest expense, net	$	(5,797	)	$	(4,895	)	$	(4,471	)

Each of the Partnership’s and Fund III’s debt arrangements with NWFCS includes an annual rebate of interest expense (patronage). Interest expense was reduced by $1.4 million, $1.4 million and $1.0 million in 2019, 2018, and 2017, respectively, which reflects estimated patronage to be refunded in the following year with the related receivable reflected in accounts receivable.

Accrued interest relating to all debt instruments was $1.6 million and $1.8 million at December 31, 2019 and 2018, respectively, and is included in accrued liabilities.