(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 these employees related to their previous employer.

The following reconciles the changes in the pension benefit obligation and plan assets for the years ended December 31, 2013, 2012, and 2011 to the funded status of the plan and the amounts recognized in the consolidated balance sheets at December 31, 2013, 2012, and 2011 (in thousands):

	2013			2012			2011
Change in projected benefit obligation:
Projected benefit obligation at beginning of year	$	1,242		$	1,034		$	788
Service cost	89			74			59
Interest cost	53			48			46
Acturial (gain) loss	(158		)	110			163
Benefits paid	(25		)	(24		)	(22		)
Projected benefit obligation at end of year	$	1,201		$	1,242		$	1,034

Change in plan assets:
Fair value of plan assets at beginning of year	$	987		$	849		$	875
Actual return (loss) on plan assets	237			112			(18		)
Employer contribution	0			50			14
Benefits paid	(25		)	(24		)	(22		)
Fair value of plan assets at end of year	$	1,199		$	987		$	849

Funded status	$	(2	)	$	(255	)	$	(185	)

Amounts recognized in the consolidated balance sheets consist of:
Accrued pension liability (non-current)	$	(2	)	$	(255	)	$	(185	)

The amounts recognized in accumulated other comprehensive income (loss) at December 31, 2013, 2012 and 2011 were as follows (in thousands):

	2013			2012		2011
Net actuarial (gain) loss	$	(62	)	$	299	$	271
Prior service cost	9			15		22
	$	(53	)	$	314	$	293

The estimated net actuarial prior service cost that will be amortized from accumulated other comprehensive income into net periodic benefit cost for the year ending December 31, 2014 is $7,000.

The components of net periodic pension cost for the years ended December 31, 2013, 2012 and 2011 were as follows (in thousands):

	2013			2012			2011
Service cost	$	89		$	74		$	59
Interest cost	53			48			46
Expected return on plan assets	(55		)	(48		)	(57		)
Amortization of net acturial loss and prior service cost	28			24			7
Net periodic pension cost	$	115		$	98		$	55

The amounts recognized in accumulated other comprehensive income (loss) for the years ended December 31, 2013, 2012 and 2011 were as follows (000’s):

	2013			2012			2011
Net loss (gain)	$	(361	)	$	28		$	239
Amortization of prior service cost	(7		)	(7		)	(7		)
Total recognized in accumulated other comprehensive income (loss)	$	(368	)	$	21		$	232
Total recognized in net periodic pension cost and other
comprehensive income (loss)	$	253		$	(119	)	$	(287	)

The weighted average actuarial assumptions used to determine the pension benefit obligations at December 31, 2013, 2012 and 2011 and the net periodic pension cost for the years then ended are as follows:

	2013		2012		2011
Pension benefit obligation:
Discount rate	5.20	%	4.30	%	4.65	%
Compensation increase	2.00	%	2.00	%	2.00	%

Net periodic pension cost:
Discount rate	4.30	%	4.65	%	6.00	%
Compensation increase	2.00	%	2.00	%	2.00	%
Expected return on plan assets	5.50	%	5.50	%	6.70	%

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 targeted asset mix. The funds are invested in stock and fixed income funds. Stock funds 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. The actual asset mix is evaluated on a quarterly basis and rebalanced if required to maintain the desired target mix. Therefore, the actual asset allocation does not vary significantly from the targeted asset allocation.

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, 2013, by asset category are as follows (in thousands):

			Fair Value Measurement at December 31, 2013
			Quoted Prices in Active Markets for Identical Assets		Significant Observable Inputs		Significant Unobservable Inputs
Asset Category	Total		(Level 1)		(Level 2)		(Level 3)
U.S. large-cap value	$	238	$	—	$	238	$	—
U.S. mid-cap value	237		—		237		—
U.S. small-cap value	237		—		237		—
Pooled fixed income	487		—		487		—
Total	$	1,199	$	—	$	1,199	$	—

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

			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 3)
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 Partnership expects to contribute $40,000 to the plan in 2014.

The following pension benefit payments, which reflect expected future services, as appropriate, are expected to be paid:

Years Ending December 31,	(in thousands)
2014	$	33
2015	34
2016	46
2017	51
2018	54
2019-2023	369