(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 who 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, 2015 and 2014 to the funded status of the plan and the amounts recognized in the consolidated balance sheets at December 31, 2015 and 2014 (in thousands):

	2015			2014
Change in projected benefit obligation:
Projected benefit obligation at beginning of year	$	1,493		$	1,201
Service cost		69			62
Interest cost		62			61
Actuarial loss		18			197
Benefits paid		(31	)		(28	)
Projected benefit obligation at end of year	$	1,611		$	1,493

Change in plan assets:
Fair value of plan assets at beginning of year	$	1,282		$	1,199
Actual return (loss) on plan assets		(27	)		74
Employer contribution		-			37
Benefits paid		(31	)		(28	)
Fair value of plan assets at end of year	$	1,224		$	1,282

Funded status	$	(387	)	$	(211	)

Amounts recognized in the consolidated balance sheets consist of:
Accrued pension liability (non-current)	$	(387	)	$	(211	)

The amounts recognized in accumulated other comprehensive loss at December 31, 2015 and 2014 were as follows (in thousands):

	2015		2014
Net actuarial loss	$	241	$	127
Prior service cost		-		2
	$	241	$	129

No estimated net actuarial prior service cost will be amortized from accumulated other comprehensive loss into net periodic benefit cost for the year ended December 31, 2016.

The components of net periodic pension cost for the years ended December 31, 2015 and 2014 were as follows (in thousands):

	2015			2014
Service cost	$	69		$	62
Interest cost		62			61
Expected return on plan assets		(69	)		(66	)
Amortization of net actuarial loss and prior service cost		2			7
Net periodic pension cost	$	64		$	64

The amounts recognized in accumulated other comprehensive income (loss) for the years ended December 31, 2015 and 2014 were as follows (in thousands):

	2015			2014
Net loss	$	154		$	189
Amortization of prior service cost		(7	)		(7	)
Total recognized in accumulated other comprehensive loss)	$	147		$	182
Total recognized in net periodic pension cost and other
Comprehensive loss	$	(211	)	$	(246	)

The weighted average actuarial assumptions used to determine the pension benefit obligations at December 31, 2015 and 2014 and the net periodic pension cost for the years then ended are as follows:

	2015		2014
Pension benefit obligation:
Discount rate		4.20%		4.20%
Compensation increase		2.00%		2.00%

Net periodic pension cost:
Discount rate		4.20%		5.20%
Compensation increase		2.00%		2.00%
Expected return on plan assets		5.50%		5.50%

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% equity securities and 40% 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, 2015, by asset category are as follows (in thousands):

			Fair Value Measurement at December 31, 2015
			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	$	258	$	-	$	258	$	-
U.S. mid-cap value		246		-		246		-
U.S. small-cap value		245		-		245		-
Pooled fixed income		475		-		475		-
Total	$	1,224	$	-	$	1,224	$	-

The fair values of the Partnership’s pension plan assets at December 31, 2014, by asset category are as follows (in thousands):

			Fair Value Measurement at December 31, 2014
			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	$	255	$	-	$	255	$	-
U.S. mid-cap value		257		-		257		-
U.S. small-cap value		256		-		256		-
Pooled fixed income		514		-		514		-
Total	$	1,282	$	-	$	1,282	$	-

The Partnership is required to make a contribution of $77,400 to the plan in 2016.

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

Years Ending December 31,	(in thousands)
2016		51
2017		55
2018		60
2019		65
2020		72
2021-2024		482