(9) PENSION PLAN

The Partnership established a defined benefit pension plan in conjunction with the acquisition of farming operations on May 1, 2000. The plan covers employees that are members of a union bargaining unit. The projected benefit obligation includes the obligation for the employees of their previous employer that became Partnership employees.

The following reconciles the changes in the pension benefit obligation and plan assets for the years ended December 31, 2012, 2011, and 2010 to the funded status of the plan and the amounts recognized in the consolidated balance sheets at December 31, 2012, 2011, and 2010 (000’s):

	2012			2011			2010
Change in projected benefit obligation:
Projected benefit obligation at beginning of year	$	1,034		$	788		$	691
Service cost	74			59			64
Interest cost	48			46			42
Acturial (gain) loss	110			163			15
Benefits paid	(24		)	(22		)	(24		)
Projected benefit obligation at end of year	$	1,242		$	1,034		$	788
Change in plan assets:
Fair value of plan assets at beginning of year	$	849		$	875		$	789
Actual return (loss) on plan assets	112			(18		)	110
Employer contribution	50			14			—
Benefits paid	(24		)	(22		)	(24		)
Fair value of plan assets at end of year	$	987		$	849		$	875

Funded status	$	(255	)	$	(185	)	$	87

Amounts recognized in the consolidated balance sheets consist of:
Prepaid pension cost (non-current)	$	—		$	—		$	87
Accrued pension liability (non-current)	(255		)	(185		)	—
Net amount recognized	$	(255	)	$	(185	)	$	87

The amounts recognized in accumulated other comprehensive loss at December 31, 2012, 2011 and 2010 were as follows (000’s):

	2012		2011		2010
Net actuarial loss	$	299	$	271	$	32
Prior service cost	15		22		29
	$	314	$	293	$	61

The estimated net actuarial loss and prior service cost that will be amortized from accumulated other comprehensive loss into net periodic benefit cost for the year ending December 31, 2013 is $21,000 and $7,000, respectively.

The accumulated benefit obligation of the pension plan as of December 31, 2012 and 2011 was approximately $957,000 and $949,000, respectively.

The components of net periodic pension cost for the years ended December 31, 2012, 2011 and 2010 were as follows (000’s):

	2012			2011			2010
Service cost	$	74		$	59		$	64
Interest cost	48			46			42
Expected return on plan assets	(48		)	(57		)	(58		)
Amortization of net acturial loss and prior service cost	24			7			7
Net periodic pension cost	$	98		$	55		$	55

The amounts recognized in accumulated other comprehensive loss for the years ended December 31, 2012, 2011 and 2010 were as follows (000’s):

	2012			2011			2010
Net loss (gain)	$	28		$	239		$	(40	)
Prior service credit	—			—			—
Amortization of prior service cost	(7		)	(7		)	(7		)
Total recognized in accumulated other comprehensive loss	$	21		$	232		$	(47	)
Total recognized in net periodic pension cost and other comprehensive income	$	(119	)	$	(287	)	$	(8	)

The weighted average actuarial assumptions used to determine the pension benefit obligations at December 31, 2012, 2011 and 2010 and the net periodic pension cost for the years then ended are as follows:

	2012		2011		2010
Pension benefit obligation:
Discount rate	4.30	%	4.65	%	6.00	%
Compensation increase	2.00	%	2.00	%	2.00	%

Net periodic pension cost:
Discount rate	4.65	%	6.00	%	6.25	%
Compensation increase	2.00	%	2.00	%	2.00	%
Expected return on plan assets	5.50	%	6.70	%	6.80	%

The discount rate was determined based on an analysis of future cash flow projections of pension plans with similar characteristics and provisions.

The expected long-term rate of return on plan assets was based primarily on historical returns as adjusted for the plan’s current investment allocation strategy.

The Partnership employs an investment strategy whereby the assets in our portfolio are evaluated to maintain the desired target asset mix. The funds are invested in stock and fixed funds. Stock funds primarily include investments in large-cap, mid-cap and small-cap companies primarily located in the United States. Fixed income securities include bonds, debentures and other fixed income securities. The target allocations for plan assets are currently 60 percent equity securities and 40 percent fixed income funds. In 2012, the Partnership eliminated the money market fund and transferred its funds to the pooled fixed income fund. The actual asset mix is evaluated on a quarterly basis and adjusted if required to maintain the desired target mix. Therefore, the actual asset allocation does not vary significantly from the targeted asset allocation. In 2011 the target allocations for plan assets are 60 percent equity securities, 20 percent fixed income funds and 20 percent money market funds.

Fund accounts are measured by redemptive values as determined by the account administrator on the last business day of the year.

The fair values of the Partnership’s pension plan assets at December 31, 2012, by asset category are as follows (000’s):

			Fair Value Measurement at December 31, 2012
			Quoted Prices in Active Markets for Identical Assets		Significant Observable Inputs		Significant Unobservable Inputs
Asset Category	Total		(Level 1)		(Level 2)		(Level 2)
U.S. large-cap value	$	194	$	—	$	194	$	—
U.S. mid-cap value	196		—		196		—
U.S. small-cap value	197		—		197		—
Pooled fixed income	400		—		400		—
Total	$	987	$	—	$	987	$	—

The fair values of the Partnership’s pension plan assets at December 31, 2011, by asset category are as follows (000’s):

			Fair Value Measurement at December 31, 2011
			Quoted Prices in Active Markets for Identical Assets		Significant Observable Inputs		Significant Unobservable Inputs
Asset Category	Total		(Level 1)		(Level 2)		(Level 2)
Money market funds	$	183	$	—	$	183	$	—
U.S. large-cap value	167		—		167		—
U.S. mid-cap value	166		—		166		—
U.S. small-cap value	168		—		168		—
Pooled fixed income	165		—		165		—
Total	$	849	$	—	$	849	$	—

The Partnership expects to contribute $90,000 to the plan in 2013.

The following pension benefit payments, which reflect expected future services, as appropriate,

are expected to be paid:

Years Ending December 31,	(000’s)
2013	$	25
2014	40
2015	41
2016	55
2017	62
2018-2022	403