Note 6 - Land, Orchards, and Equipment

12 Months Ended

Dec. 31, 2015

Property, Plant and Equipment Disclosure [Text Block]

(6)	LAND, ORCHARDS AND EQUIPMENT

Land, orchards and equipment, stated at cost, consisted of the following at December 31, 2015 and 2014 (in thousands):

	2015		2014
Land	$	10,745	$	8,884
Improvements		2,016		2,016
Machinery and equipment		8,663		8,489
Irrigation well and equipment		2,592		2,592
Producing orchards		76,073		69,749
Construction work-in-progress		3,326		241
Land, orchards and equipment (gross)		103,415		91,971
Less accumulated depreciation and amortization		52,162		49,653
Land, orchards and equipment (net)	$	51,253	$	42,318

Depreciation expense amounted to $2.6 million and $2.4 million in 2015 and 2014, respectively. The Partnership’s interests in trees situated on certain leased macadamia orchard properties are subject to repurchase at the option of the lessors. Such repurchase options grant the lessors the right to purchase all or a portion of these trees after June 30, 2019, at fair market value, as defined in the respective farming lease agreements. If the repurchase options are not exercised prior to expiration of the lease agreements and the lessors do not offer to extend the lease agreements at the then-current market lease rates, the lessors are required to repurchase these trees at fair market value at lease expiration. The lessors will be released from their repurchase obligation in the event that the Partnership declines to accept an extension offer from the lessors at fair market lease rates.