Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2014 | 15-May-14 | |
Document Information [Line Items] | ' | ' |
Entity Registrant Name | 'LAKE AREA CORN PROCESSORS LLC | ' |
Entity Central Index Key | '0001156174 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Non-accelerated Filer | ' |
Document Type | '10-Q | ' |
Document Period End Date | 31-Mar-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q1 | ' |
Amendment Flag | 'false | ' |
Entity Common Stock, Shares Outstanding | ' | 29,620,000 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
CURRENT ASSETS | ' | ' |
Cash and cash equivalents | $9,880,593 | $20,706,458 |
Accounts receivable | 9,169,561 | 3,522,497 |
Other receivables | 19,651 | 17,707 |
Inventory | 9,278,858 | 6,874,207 |
Derivative financial instruments and due from broker | 1,599,268 | 1,502,574 |
Prepaid expenses | 143,915 | 165,580 |
Total current assets | 30,091,846 | 32,789,023 |
PROPERTY AND EQUIPMENT | ' | ' |
Land | 676,097 | 676,097 |
Land improvements | 2,665,358 | 2,665,358 |
Buildings | 8,277,636 | 8,277,636 |
Equipment | 39,896,906 | 39,861,906 |
Construction in progress | 1,732,307 | 199,302 |
Gross Property and Equipment | 53,248,304 | 51,680,299 |
Less accumulated depreciation | -29,388,095 | -28,722,235 |
Net property and equipment | 23,860,209 | 22,958,064 |
OTHER ASSETS | ' | ' |
Goodwill | 10,395,766 | 10,395,766 |
Investments | 18,309,355 | 16,078,269 |
Other | 313,105 | 356,683 |
Total other assets | 29,018,226 | 26,830,718 |
TOTAL ASSETS | 82,970,281 | 82,577,805 |
CURRENT LIABILITIES | ' | ' |
Outstanding checks in excess of bank balance | 2,222,561 | 0 |
Accounts payable | 4,574,577 | 11,953,957 |
Accrued liabilities | 606,851 | 613,638 |
Derivative financial instruments | 849,278 | 978,935 |
Current maturities of notes payable | 1,282,159 | 1,281,760 |
Other | 123,741 | 123,741 |
Total current liabilities | 9,659,167 | 14,952,031 |
LONG-TERM LIABILITIES | ' | ' |
Notes payable, net of current maturities | 8,444,018 | 8,764,708 |
Other | 403,884 | 405,884 |
Total long-term liabilities | 8,847,902 | 9,170,592 |
COMMITMENTS AND CONTINGENCIES | ' | ' |
MEMBERS' EQUITY (29,620,000 units issued and outstanding) | 64,463,212 | 58,455,182 |
TOTAL LIABILITIES AND MEMBERS' EQUITY | $82,970,281 | $82,577,805 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets Parenthetical | Mar. 31, 2014 | Dec. 31, 2013 |
MEMBERS' EQUITY, units issued and outstanding | 29,620,000 | 29,620,000 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (Unaudited) (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
REVENUES | $38,291,090 | $38,292,468 |
COSTS OF REVENUES | 27,423,861 | 34,695,661 |
GROSS PROFIT | 10,867,229 | 3,596,807 |
OPERATING EXPENSES | 1,033,381 | 756,171 |
INCOME FROM OPERATIONS | 9,833,848 | 2,840,636 |
OTHER INCOME (EXPENSE) | ' | ' |
Interest income | 8,070 | 8,651 |
Equity in net income of investments | 2,216,087 | 130,303 |
Interest expense | -83,702 | -33,546 |
Total other income | 2,140,455 | 105,408 |
NET INCOME | $11,974,303 | $2,946,044 |
BASIC AND DILUTED EARNINGS PER UNIT | $0.40 | $0.10 |
Weighted average number of units outstanding for the calculation of basic & diluted earnings per unit | 29,620,000 | 29,620,000 |
Distributions Declared Per Unit | $0.20 | $0 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (Unaudited) (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
OPERATING ACTIVITIES | ' | ' |
Net income | $11,974,303 | $2,946,044 |
Changes to net income affecting cash and cash equivalents | ' | ' |
Depreciation and amortization | 709,438 | 700,298 |
Equity in net income of investments | -2,216,087 | -130,303 |
(Increase) decrease in | ' | ' |
Receivables | -5,649,006 | -1,010,917 |
Inventory | -2,404,651 | -3,506,111 |
Prepaid expenses | 21,665 | 8,297 |
Derivative financial instruments | -226,351 | 917,810 |
Other Assets | 0 | -32,990 |
Accounts payable | -7,379,380 | -9,731,737 |
Accrued and other liabilities | -8,787 | 37,462 |
NET CASH USED IN OPERATING ACTIVITIES | -5,178,856 | -9,802,147 |
INVESTING ACTIVITIES | ' | ' |
Purchase of property and equipment | -1,568,005 | -145,297 |
Purchase of investments | 15,000 | 0 |
NET CASH USED IN INVESTING ACTIVITIES | -1,583,005 | -145,297 |
FINANCING ACTIVITIES | ' | ' |
Increase in outstanding checks in excess of bank balance | 2,222,561 | 1,144,096 |
Net borrowings on line of credit | 0 | 2,050,000 |
Principal payments on long-term notes payable | -320,292 | -70,853 |
Distributions paid to LACP members | -5,966,273 | 0 |
NET CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES | -4,064,004 | 3,123,243 |
NET (DECREASE) IN CASH | -10,825,865 | -6,824,201 |
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | 20,706,458 | 7,662,901 |
CASH AND CASH EQUIVALENTS AT END OF PERIOD | 9,880,593 | 838,700 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION | ' | ' |
Cash paid during the period for interest | $92,085 | $27,747 |
Nature_of_Operations
Nature of Operations | 3 Months Ended |
Mar. 31, 2014 | |
Nature of Operations [Abstract] | ' |
Nature of Operations | ' |
NATURE OF OPERATIONS | |
Principal Business Activity | |
Lake Area Corn Processors, LLC and subsidiary (the Company) is a South Dakota limited liability company. | |
The Company owns and manages Dakota Ethanol, LLC (Dakota Ethanol), a 40 million-gallon (annual nameplate capacity) ethanol plant, located near Wentworth, South Dakota. Dakota Ethanol sells ethanol and related products to customers located in North America. | |
In addition, the Company has investment interest in five companies in related industries. See note 4 for further details. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 3 Months Ended | ||||||||||
Mar. 31, 2014 | |||||||||||
Summary of Significant Accounting Policies [Abstract] | ' | ||||||||||
Summary of Significant Accounting Policies | ' | ||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||||||||
The unaudited financial statements contained herein have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission. Accordingly, they do not include all the information and footnotes required by accounting principles generally accepted in the United States of America although the Company believes that the disclosures are adequate to make the information not misleading. | |||||||||||
In the opinion of management, all adjustments considered necessary for a fair presentation have been included in the accompanying financial statements. The results of operations for the three months ended March 31, 2014 are not necessarily indicative of the results to be expected for a full year. | |||||||||||
These financial statements should be read in conjunction with the financial statements and notes included in the Company’s audited financial statements for the year ended December 31, 2013, contained in the annual report on Form 10-K for 2013. | |||||||||||
Principles of Consolidation | |||||||||||
The consolidated financial statements of the Company include the accounts of its wholly owned subsidiary, Dakota Ethanol. All significant inter-company transactions and balances have been eliminated in consolidation. | |||||||||||
Revenue Recognition | |||||||||||
Revenue from the production of ethanol and related products is recorded when title transfers to customers. Generally, ethanol and related products are shipped FOB shipping point, based on written contract terms between Dakota Ethanol and its customers. Collectability of revenue is reasonably assured based on historical evidence of collectability between Dakota Ethanol and its customers. Interest income is recognized as earned. | |||||||||||
Shipping costs incurred by the Company in the sale of ethanol, dried distiller's grains and corn oil are not specifically identifiable and as a result, revenue from the sale of those products is recorded based on the net selling price reported to the Company from the marketer. | |||||||||||
Cost of Revenues | |||||||||||
The primary components of cost of revenues from the production of ethanol and related co-product are corn expense, energy expense (natural gas and electricity), raw materials expense (chemicals and denaturant), and direct labor costs. | |||||||||||
Shipping costs on modified and wet distiller’s grains are included in cost of revenues. | |||||||||||
Inventory Valuation | |||||||||||
Ethanol inventory, raw materials, work-in-process, and parts inventory are valued using methods which approximate the lower of cost (first-in, first-out) or market. Distillers grains and related products are stated at net realizable value. In the valuation of inventories and purchase and sale commitments, market is based on current replacement values except that it does not exceed net realizable values and is not less than net realizable values reduced by allowances for approximate normal profit margin. | |||||||||||
Investment in commodities contracts, derivative instruments and hedging activities | |||||||||||
The Company is exposed to certain risks related to our ongoing business operations. The primary risks that we manage by using forward or derivative instruments are price risk on anticipated purchases of corn, natural gas and the sale of ethanol. | |||||||||||
The Company is subject to market risk with respect to the price and availability of corn, the principal raw material we use to produce ethanol and ethanol by-products. In general, rising corn prices result in lower profit margins and, therefore, represent unfavorable market conditions. This is especially true when market conditions do not allow us to pass along increased corn costs to our customers. The availability and price of corn is subject to wide fluctuations due to unpredictable factors such as weather conditions, farmer planting decisions, governmental policies with respect to agriculture and international trade and global demand and supply. | |||||||||||
Certain contracts that literally meet the definition of a derivative may be exempted from derivative accounting as normal purchases or normal sales. Normal purchases and normal sales are contracts that provide for the purchase or sale of something other than a financial instrument or derivative instrument that will be delivered in quantities expected to be used or sold over a reasonable period in the normal course of business. Contracts that meet the requirements of normal purchases or sales are documented as normal and exempted from the accounting and reporting requirements of derivative accounting. | |||||||||||
The Company does not apply the normal purchase and sales exemption for forward corn purchase contracts. As of March 31, 2014, we are committed to purchasing 5.7 million bushels of corn on a forward contract basis with an average price of $4.44 per bushel. Dakota Ethanol has a net derivative financial instrument liability of approximately $639,000 related to the forward contracted purchases of corn. These corn purchase contracts represent 33% of the projected annual plant corn usage. | |||||||||||
The Company enters into firm-price purchase commitments with some of our natural gas suppliers under which we agree to buy natural gas at a price set in advance of the actual delivery of that natural gas to us. Under these arrangements, we assume the risk of a price decrease in the market price of natural gas between the time this price is fixed and the time the natural gas is delivered. At March 31, 2014, we are not committed to purchasing any natural gas. We account for these transactions as normal purchases, and accordingly, do not mark these transactions to market. | |||||||||||
The Company enters into short-term forward, option and futures contracts for corn and natural gas as a means of managing exposure to changes in commodity and energy prices. The Company enters into short-term forward, option and futures contracts for sales of ethanol to manage exposure to changes in energy prices. All of our derivatives are designated as non-hedge derivatives, and accordingly are recorded at fair value with changes in fair value recognized in net income. Although the contracts are considered economic hedges of specified risks, they are not designated as and accounted for as hedging instruments. | |||||||||||
As part of our trading activity, the Company uses futures and option contracts offered through regulated commodity exchanges to reduce risk and we are exposed to risk of loss in the market value of inventories. To reduce that risk, we generally take positions using forward and futures contracts and options. | |||||||||||
Derivatives not designated as hedging instruments at March 31, 2014 and December 31, 2013 were as follows: | |||||||||||
Balance Sheet Classification | 31-Mar-14 | December 31, 2013* | |||||||||
Forward contracts in gain position | Current Assets | $ | 210,368 | $ | — | ||||||
Futures contracts in gain position | Current Assets | — | 249,688 | ||||||||
Futures contracts in loss position | (Current Liabilities) | (1,692,012 | ) | — | |||||||
Total forward and futures contracts | (1,481,644 | ) | 249,688 | ||||||||
Cash held by broker | 3,080,912 | 1,252,886 | |||||||||
Current Assets | $ | 1,599,268 | $ | 1,502,574 | |||||||
Forward contracts in loss position | (Current Liabilities) | $ | (849,278 | ) | $ | (978,935 | ) | ||||
*Derived from audited financial statements. | |||||||||||
Futures contracts and cash held by broker are all with one party and the right of offset exists. Therefore, on the balance sheet, these items are netted in one balance regardless of position. | |||||||||||
Forward contracts are with multiple parties and the right of offset does not exist. Therefore, these contracts are reported at the gross amounts on the balance sheet. | |||||||||||
Realized and unrealized gains and losses related to derivative contracts related to corn and natural gas purchases are included as a component of cost of revenues and derivative contracts related to ethanol sales are included as a component of revenues in the accompanying financial statements. | |||||||||||
Statement of Operations | Three Months Ended March 31, | ||||||||||
Classification | 2014 | 2013 | |||||||||
Net realized and unrealized gains (losses) related to purchase contracts: | |||||||||||
Futures contracts | Cost of Revenues | $ | (2,713,674 | ) | $ | (239,414 | ) | ||||
Forward contracts | Cost of Revenues | 14,151 | (62,951 | ) | |||||||
Use of Estimates | |||||||||||
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant estimates include the fair value of derivative financial instruments, lower of cost or market accounting for inventory and forward purchase contracts and goodwill impairment evaluation. |
Inventory
Inventory | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Inventory [Abstract] | ' | ||||||||
Inventory | ' | ||||||||
INVENTORY | |||||||||
Inventory consisted of the following as of March 31, 2014 and December 31, 2013: | |||||||||
31-Mar-14 | December 31, 2013* | ||||||||
Raw materials | $ | 6,510,093 | $ | 3,645,811 | |||||
Finished goods | 1,205,009 | 1,544,426 | |||||||
Work in process | 604,312 | 748,965 | |||||||
Parts inventory | 959,444 | 935,005 | |||||||
$ | 9,278,858 | $ | 6,874,207 | ||||||
*Derived from audited financial statements. |
Investments_Notes
Investments (Notes) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Investments [Abstract] | ' | ||||||||
Investments | ' | ||||||||
INVESTMENTS | |||||||||
Dakota Ethanol has a 7% investment interest in the company’s ethanol marketer, Renewable Products Marketing Group, LLC (RPMG). The net income which is reported in the Company’s income statement for RPMG is based on RPMG’s December 31, 2013 unaudited interim results. The carrying amount of the Company’s investment was approximately $2,873,000 and $2,793,000 as of March 31, 2014 and December 31, 2013, respectively. | |||||||||
Dakota Ethanol has a 9% investment interest in Prairie Gold Venture Partnership, LLC (PGVP), a venture capital fund investing in cellulosic ethanol production. The net income which is reported in the Company’s income statement for PGVP is based on PGVP’s December 31, 2013 unaudited interim financials. The carrying amount of the Company’s investment was approximately $1,174,000 and $1,174,000 as of March 31, 2014 and December 31, 2013, respectively. | |||||||||
Dakota Ethanol has a 10% investment interest in Lawrenceville Tanks, LLC (LT), a partnership to construct and operate an ethanol storage terminal in Georgia. The net income which is reported in the Company’s income statement for LT is based on LT’s March 31, 2014 unaudited interim results. The carrying amount of the Company’s investment was approximately $110,000 as of March 31, 2014 and December 31, 2013, respectively. | |||||||||
Lake Area Corn Processors has a 10% investment interest in Guardian Hankinson, LLC (GH), a partnership to operate an ethanol plant in North Dakota. The net income which is reported in the Company’s income statement for GH is based on GH’s March 31, 2014 unaudited interim results. The carrying amount of the Company’s investment was approximately $14,135,000 and $12,000,000 as of March 31, 2014 and December 31, 2013, respectively. | |||||||||
Lake Area Corn Processors has a 17% investment interest in Guardian Energy Management, LLC (GEM), a partnership to provide management services to ethanol plants. The net income which is reported in the Company’s income statement for GH is based on GH’s March 31, 2014 unaudited interim results. The carrying amount of the Company’s investment was approximately $15,000 and $0 as of March 31, 2014 and December 31, 2013, respectively. 2014 is the initial investment year. | |||||||||
Condensed, combined unaudited financial information of the Company’s investments in RPMG, PGVP, LT, GH and GEM is as follows: | |||||||||
Balance Sheet | 31-Mar-14 | 31-Dec-13 | |||||||
Current Assets | $ | 218,295,344 | $ | 165,653,623 | |||||
Other Assets | 182,633,073 | 184,749,457 | |||||||
Current Liabilities | 168,172,866 | 116,462,830 | |||||||
Long-term Debt | 43,256,155 | 67,216,061 | |||||||
Members' Equity | 189,499,396 | 166,724,189 | |||||||
Three Months Ended | |||||||||
Income Statement | 31-Mar-14 | 31-Mar-13 | |||||||
Revenue | $ | 87,414,233 | $ | 2,748,690 | |||||
Gross Profit | 26,927,277 | 2,746,477 | |||||||
Net Income | 20,363,963 | 1,691,724 | |||||||
The Company recorded equity in net income of approximately $2,136,000 from GH and $80,000 from our other investments for a total of approximately $2,216,000 the three months ended March 31, 2014. Income for the three months ended March 31, 2013 totaled approximately $130,000. |
Short_Term_Note_Payable
Short Term Note Payable | 3 Months Ended |
Mar. 31, 2014 | |
Short Term Note Payable [Abstract] | ' |
Short Term Note Payable | ' |
On May 15, 2013, Dakota Ethanol executed a revolving promissory note from Farm Credit Services of America (FCSA) in the amount of $10,000,000 and the amount available is subject to a borrowing base. Interest on the outstanding principal balances will accrue at 310 basis points above the 1 month LIBOR rate and is not subject to a floor. The rate was 3.25% at March 31, 2014. There is a non-use fee of 0.25% on the unused portion of the $10,000,000 availability. The note is collateralized by the ethanol plant and equipment, its accounts receivable and inventory. The note expires on May 31, 2015. On March 31, 2014 and December 31, 2013, Dakota Ethanol had $0 outstanding and $10,000,000 available to be drawn on the revolving promissory note. |
Long_Term_Notes_Payable
Long Term Notes Payable | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Long Term Note Payable [Abstract] | ' | ||||||||
Long Term Notes Payable | ' | ||||||||
LONG-TERM NOTES PAYABLE | |||||||||
Dakota Ethanol has two long-term notes payable with FCSA. As part of the note payable agreements, Dakota Ethanol is subject to certain restrictive covenants establishing financial reporting requirements, distribution and capital expenditure limits, debt service coverage ratios and minimum working capital requirements. The notes are collateralized by the ethanol plant and equipment, its accounts receivable and inventory. | |||||||||
On May 15, 2013, Dakota Ethanol executed a revolving promissory note from Farm Credit Services of America (FCSA) in the amount of $5,000,000. Interest on the outstanding principal balance will accrue at 335 basis points above the 1 month LIBOR rate and is not subject to a floor. The rate was 3.50% at March 31, 2014. Dakota Ethanol may elect to borrow any principal amount repaid on the note up to $5,000,000 subject to the terms of the agreement. Should Dakota Ethanol elect not to utilize this feature, the lender will assess a non-use fee of 0.35% on the unused portion of the note. The note matures on May 31, 2018. On March 31, 2014 and December 31, 2013, Dakota Ethanol had $1,000 outstanding and $4,999,000 available to be drawn on the note. | |||||||||
On December 19, 2013, Dakota Ethanol executed a term note from FCSA in the amount of $10,000,000 to finance the investment in Guardian Hankinson, LLC. Interest on the outstanding principal balance will accrue at 335 basis points above the 1 month LIBOR rate and is not subject to a floor. The rate was 3.50% at March 31, 2014. The note requires quarterly principal payments of $312,500 plus accrued interest. The note matures on December 31, 2021. | |||||||||
The balances of the notes payable are as follows: | |||||||||
31-Mar-14 | December 31, 2013* | ||||||||
Notes payable - FCSA | $ | 9,688,500 | $ | 10,001,000 | |||||
Note payable - Other | 37,677 | 45,468 | |||||||
9,726,177 | 10,046,468 | ||||||||
Less current portion | (1,282,159 | ) | (1,281,760 | ) | |||||
$ | 8,444,018 | $ | 8,764,708 | ||||||
*Derived from audited financial statements | |||||||||
Minimum scheduled principal payments for the next five years are estimated as follows: | |||||||||
Years Ending March 31, | Amount | ||||||||
2015 | $ | 1,282,159 | |||||||
2016 | 1,255,517 | ||||||||
2017 | 1,250,000 | ||||||||
2018 | 1,251,000 | ||||||||
2019 | 1,250,000 | ||||||||
Fair_Value_Measurements_Notes
Fair Value Measurements (Notes) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Fair Value Measurements [Abstract] | ' | ||||||||||||||||
Fair Value Measurements | ' | ||||||||||||||||
FAIR VALUE MEASUREMENTS | |||||||||||||||||
The Company complies with the fair value measurements and disclosures standard which defines fair value, establishes a framework for measuring fair value, and expands disclosure for those assets and liabilities carried on the balance sheet on a fair value basis. | |||||||||||||||||
The Company’s balance sheet contains derivative financial instruments that are recorded at fair value on a recurring basis. Fair value measurements and disclosures require that assets and liabilities carried at fair value be classified and disclosed according to the process for determining fair value. There are three levels of determining fair value. | |||||||||||||||||
Level 1 uses quoted market prices in active markets for identical assets or liabilities. | |||||||||||||||||
Level 2 uses observable market based inputs or unobservable inputs that are corroborated by market data. | |||||||||||||||||
Level 3 uses unobservable inputs that are not corroborated by market data. | |||||||||||||||||
A description of the valuation methodologies used for instruments measured at fair value, as well as the general classification of such instruments pursuant to the valuation hierarchy, is set forth below. | |||||||||||||||||
Derivative financial instruments. Commodity futures and options contracts are reported at fair value utilizing Level 1 inputs. For these contracts, the Company obtains fair value measurements from an independent pricing service. The fair value measurements consider observable data that may include dealer quotes and live trading levels from the CBOT and NYMEX markets. Over-the-counter commodity options contracts are reported at fair value utilizing Level 2 inputs. For these contracts, the Company obtains fair value measurements from an independent pricing service. The fair value measurements consider observable data that may include dealer quotes and live trading levels from the over-the-counter markets. Forward purchase contracts are reported at fair value utilizing Level 2 inputs. For these contracts, the Company obtains fair value measurements from local grain terminal bid values. The fair value measurements consider observable data that may include live trading bids from local elevators and processing plants which are based off the CBOT markets. | |||||||||||||||||
The following table summarizes financial assets and financial liabilities measured at fair value on a recurring basis as of March 31, 2014 and December 31, 2013 segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value: | |||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | ||||||||||||||
31-Mar-14 | |||||||||||||||||
Assets: | |||||||||||||||||
Derivative financial instruments, forward contracts | $ | 210,368 | $ | — | $ | 210,368 | $ | — | |||||||||
Liabilities: | |||||||||||||||||
Derivative financial instruments, futures contracts | $ | (1,692,013 | ) | $ | (1,692,013 | ) | $ | — | $ | — | |||||||
forward contracts | (849,278 | ) | — | (849,278 | ) | — | |||||||||||
December 31, 2013* | |||||||||||||||||
Assets: | |||||||||||||||||
Derivative financial instruments, futures contracts | $ | 249,688 | $ | 249,688 | $ | — | $ | — | |||||||||
Liabilities: | |||||||||||||||||
Derivative financial instruments, forward contracts | $ | (978,935 | ) | $ | — | $ | (978,935 | ) | $ | — | |||||||
*Derived from audited financial statements. | |||||||||||||||||
During the three months ended March 31, 2014, the Company did not make any changes between Level 1 and Level 2 assets and liabilities. As of March 31, 2014 and December 31, 2013, the Company did not have any Level 3 assets or liabilities. | |||||||||||||||||
Certain financial assets and financial liabilities are measured at fair value on a nonrecurring basis; that is, the instruments are not measured at fair value on an ongoing basis but are subject to fair value adjustments in certain circumstances (for example, when there is evidence of impairment). Financial assets and financial liabilities measured at fair value on a non-recurring basis were not significant at March 31, 2014. | |||||||||||||||||
Disclosure requirements for fair value of financial instruments require disclosure of the fair value of financial assets and financial liabilities, including those financial assets and financial liabilities that are not measured and reported at fair value on a recurring basis or nonrecurring basis. The methodologies for estimating the fair value of financial assets and financial liabilities that are measured at fair value on a recurring or non recurring basis are discussed above. The methodologies for other financial assets and financial liabilities are discussed below. | |||||||||||||||||
The Company believes the carrying amount of cash and cash equivalents (level 1), accounts receivable (level 2), other receivables (level 2), accounts payable (level 2) and short-term notes payable (level 3) approximates fair value due to the short maturity of these instruments. | |||||||||||||||||
The carrying amount of long-term notes payable (level 3) approximates fair value based on estimated interest rates for comparable debt. |
Related_Party_Transactions
Related Party Transactions | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Related Party Transactions [Abstract] | ' | ||||||||
Related Party Transactions | ' | ||||||||
RELATED PARTY TRANSACTIONS | |||||||||
Dakota Ethanol has a 7% interest in RPMG, and Dakota Ethanol has entered into an ethanol marketing agreement with RPMG for the exclusive rights to market, sell and distribute the entire ethanol inventory produced by Dakota Ethanol. The marketing fees are included in net revenues. | |||||||||
Sales and marketing fees related to the agreements are as follows: | |||||||||
Three Months Ended March 31, | |||||||||
2014 | 2013 | ||||||||
Revenue - ethanol | $ | 30,921,477 | $ | 27,674,376 | |||||
Revenue - distiller's grains and corn oil | 2,589,760 | 1,784,571 | |||||||
Marketing fees - ethanol | 32,903 | 64,152 | |||||||
Marketing fees - distillers grains and corn oil | 14,667 | 9,474 | |||||||
31-Mar-14 | December 31, 2013* | ||||||||
Amounts due included in accounts receivable | $ | 2,158,295 | $ | 2,382,068 | |||||
Commitments_Notes
Commitments (Notes) | 3 Months Ended |
Mar. 31, 2014 | |
Commitments [Abstract] | ' |
Commitments | ' |
COMMITMENTS | |
Plant upgrade projects- Dakota Ethanol has committed to contracts to upgrade various components of the plant. The total value of the contracts is approximately $7 million. The projects are expected to be completed in the third quarter of 2014. Dakota Ethanol will pay for the upgrades with cash flows from operations and the long-term revolving debt currently in place. |
Subsequent_Events_Notes
Subsequent Events (Notes) | 3 Months Ended |
Mar. 31, 2014 | |
Subsequent Events [Abstract] | ' |
Subsequent Events | ' |
SUBSEQUENT EVENTS | |
During May 2014, the Company declared and paid a distribution to its members of $7,405,000, or $0.25 per capital unit. |
Accounting_Policies
Accounting Policies | 3 Months Ended | ||||||||||
Mar. 31, 2014 | |||||||||||
Accounting Policies [Abstract] | ' | ||||||||||
Principles of Consolidation | ' | ||||||||||
Principles of Consolidation | |||||||||||
The consolidated financial statements of the Company include the accounts of its wholly owned subsidiary, Dakota Ethanol. All significant inter-company transactions and balances have been eliminated in consolidation. | |||||||||||
Revenue Recognition | ' | ||||||||||
Revenue Recognition | |||||||||||
Revenue from the production of ethanol and related products is recorded when title transfers to customers. Generally, ethanol and related products are shipped FOB shipping point, based on written contract terms between Dakota Ethanol and its customers. Collectability of revenue is reasonably assured based on historical evidence of collectability between Dakota Ethanol and its customers. Interest income is recognized as earned. | |||||||||||
Shipping costs incurred by the Company in the sale of ethanol, dried distiller's grains and corn oil are not specifically identifiable and as a result, revenue from the sale of those products is recorded based on the net selling price reported to the Company from the marketer. | |||||||||||
Cost of Revenues | ' | ||||||||||
Cost of Revenues | |||||||||||
The primary components of cost of revenues from the production of ethanol and related co-product are corn expense, energy expense (natural gas and electricity), raw materials expense (chemicals and denaturant), and direct labor costs. | |||||||||||
Shipping costs on modified and wet distiller’s grains are included in cost of revenues. | |||||||||||
Inventory Valuation | ' | ||||||||||
Inventory Valuation | |||||||||||
Ethanol inventory, raw materials, work-in-process, and parts inventory are valued using methods which approximate the lower of cost (first-in, first-out) or market. Distillers grains and related products are stated at net realizable value. In the valuation of inventories and purchase and sale commitments, market is based on current replacement values except that it does not exceed net realizable values and is not less than net realizable values reduced by allowances for approximate normal profit margin. | |||||||||||
Investment in commodities contracts, derivative instruments and hedging activities | ' | ||||||||||
Investment in commodities contracts, derivative instruments and hedging activities | |||||||||||
The Company is exposed to certain risks related to our ongoing business operations. The primary risks that we manage by using forward or derivative instruments are price risk on anticipated purchases of corn, natural gas and the sale of ethanol. | |||||||||||
The Company is subject to market risk with respect to the price and availability of corn, the principal raw material we use to produce ethanol and ethanol by-products. In general, rising corn prices result in lower profit margins and, therefore, represent unfavorable market conditions. This is especially true when market conditions do not allow us to pass along increased corn costs to our customers. The availability and price of corn is subject to wide fluctuations due to unpredictable factors such as weather conditions, farmer planting decisions, governmental policies with respect to agriculture and international trade and global demand and supply. | |||||||||||
Certain contracts that literally meet the definition of a derivative may be exempted from derivative accounting as normal purchases or normal sales. Normal purchases and normal sales are contracts that provide for the purchase or sale of something other than a financial instrument or derivative instrument that will be delivered in quantities expected to be used or sold over a reasonable period in the normal course of business. Contracts that meet the requirements of normal purchases or sales are documented as normal and exempted from the accounting and reporting requirements of derivative accounting. | |||||||||||
The Company does not apply the normal purchase and sales exemption for forward corn purchase contracts. As of March 31, 2014, we are committed to purchasing 5.7 million bushels of corn on a forward contract basis with an average price of $4.44 per bushel. Dakota Ethanol has a net derivative financial instrument liability of approximately $639,000 related to the forward contracted purchases of corn. These corn purchase contracts represent 33% of the projected annual plant corn usage. | |||||||||||
The Company enters into firm-price purchase commitments with some of our natural gas suppliers under which we agree to buy natural gas at a price set in advance of the actual delivery of that natural gas to us. Under these arrangements, we assume the risk of a price decrease in the market price of natural gas between the time this price is fixed and the time the natural gas is delivered. At March 31, 2014, we are not committed to purchasing any natural gas. We account for these transactions as normal purchases, and accordingly, do not mark these transactions to market. | |||||||||||
The Company enters into short-term forward, option and futures contracts for corn and natural gas as a means of managing exposure to changes in commodity and energy prices. The Company enters into short-term forward, option and futures contracts for sales of ethanol to manage exposure to changes in energy prices. All of our derivatives are designated as non-hedge derivatives, and accordingly are recorded at fair value with changes in fair value recognized in net income. Although the contracts are considered economic hedges of specified risks, they are not designated as and accounted for as hedging instruments. | |||||||||||
As part of our trading activity, the Company uses futures and option contracts offered through regulated commodity exchanges to reduce risk and we are exposed to risk of loss in the market value of inventories. To reduce that risk, we generally take positions using forward and futures contracts and options. | |||||||||||
Derivatives not designated as hedging instruments at March 31, 2014 and December 31, 2013 were as follows: | |||||||||||
Balance Sheet Classification | 31-Mar-14 | December 31, 2013* | |||||||||
Forward contracts in gain position | Current Assets | $ | 210,368 | $ | — | ||||||
Futures contracts in gain position | Current Assets | — | 249,688 | ||||||||
Futures contracts in loss position | (Current Liabilities) | (1,692,012 | ) | — | |||||||
Total forward and futures contracts | (1,481,644 | ) | 249,688 | ||||||||
Cash held by broker | 3,080,912 | 1,252,886 | |||||||||
Current Assets | $ | 1,599,268 | $ | 1,502,574 | |||||||
Forward contracts in loss position | (Current Liabilities) | $ | (849,278 | ) | $ | (978,935 | ) | ||||
*Derived from audited financial statements. | |||||||||||
Futures contracts and cash held by broker are all with one party and the right of offset exists. Therefore, on the balance sheet, these items are netted in one balance regardless of position. | |||||||||||
Forward contracts are with multiple parties and the right of offset does not exist. Therefore, these contracts are reported at the gross amounts on the balance sheet. | |||||||||||
Realized and unrealized gains and losses related to derivative contracts related to corn and natural gas purchases are included as a component of cost of revenues and derivative contracts related to ethanol sales are included as a component of revenues in the accompanying financial statements. | |||||||||||
Statement of Operations | Three Months Ended March 31, | ||||||||||
Classification | 2014 | 2013 | |||||||||
Net realized and unrealized gains (losses) related to purchase contracts: | |||||||||||
Futures contracts | Cost of Revenues | $ | (2,713,674 | ) | $ | (239,414 | ) | ||||
Forward contracts | Cost of Revenues | 14,151 | (62,951 | ) | |||||||
Use of Estimates | ' | ||||||||||
Use of Estimates | |||||||||||
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant estimates include the fair value of derivative financial instruments, lower of cost or market accounting for inventory and forward purchase contracts and goodwill impairment evaluation. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Tables) | 3 Months Ended | ||||||||||
Mar. 31, 2014 | |||||||||||
Summary of Significant Accounting Policies [Abstract] | ' | ||||||||||
Derivatives Not Designated as Hedging Instruments | ' | ||||||||||
Balance Sheet Classification | 31-Mar-14 | December 31, 2013* | |||||||||
Forward contracts in gain position | Current Assets | $ | 210,368 | $ | — | ||||||
Futures contracts in gain position | Current Assets | — | 249,688 | ||||||||
Futures contracts in loss position | (Current Liabilities) | (1,692,012 | ) | — | |||||||
Total forward and futures contracts | (1,481,644 | ) | 249,688 | ||||||||
Cash held by broker | 3,080,912 | 1,252,886 | |||||||||
Current Assets | $ | 1,599,268 | $ | 1,502,574 | |||||||
Forward contracts in loss position | (Current Liabilities) | $ | (849,278 | ) | $ | (978,935 | ) | ||||
Net realized and unrealized gains (losses) related to purchase contracts | ' | ||||||||||
Statement of Operations | Three Months Ended March 31, | ||||||||||
Classification | 2014 | 2013 | |||||||||
Net realized and unrealized gains (losses) related to purchase contracts: | |||||||||||
Futures contracts | Cost of Revenues | $ | (2,713,674 | ) | $ | (239,414 | ) | ||||
Forward contracts | Cost of Revenues | 14,151 | (62,951 | ) | |||||||
Inventory_Tables
Inventory (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Inventory [Abstract] | ' | ||||||||
Schedule of Inventory | ' | ||||||||
Inventory consisted of the following as of March 31, 2014 and December 31, 2013: | |||||||||
31-Mar-14 | December 31, 2013* | ||||||||
Raw materials | $ | 6,510,093 | $ | 3,645,811 | |||||
Finished goods | 1,205,009 | 1,544,426 | |||||||
Work in process | 604,312 | 748,965 | |||||||
Parts inventory | 959,444 | 935,005 | |||||||
$ | 9,278,858 | $ | 6,874,207 | ||||||
*Derived from audited financial statements. |
Investments_Investments_Tables
Investments Investments (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Investments [Abstract] | ' | ||||||||
Equity Method Investments | ' | ||||||||
Balance Sheet | 31-Mar-14 | 31-Dec-13 | |||||||
Current Assets | $ | 218,295,344 | $ | 165,653,623 | |||||
Other Assets | 182,633,073 | 184,749,457 | |||||||
Current Liabilities | 168,172,866 | 116,462,830 | |||||||
Long-term Debt | 43,256,155 | 67,216,061 | |||||||
Members' Equity | 189,499,396 | 166,724,189 | |||||||
Three Months Ended | |||||||||
Income Statement | 31-Mar-14 | 31-Mar-13 | |||||||
Revenue | $ | 87,414,233 | $ | 2,748,690 | |||||
Gross Profit | 26,927,277 | 2,746,477 | |||||||
Net Income | 20,363,963 | 1,691,724 | |||||||
Long_Term_Notes_Payable_Tables
Long Term Notes Payable (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Long Term Note Payable [Abstract] | ' | ||||||||
Schedule of Long-term Debt | ' | ||||||||
31-Mar-14 | December 31, 2013* | ||||||||
Notes payable - FCSA | $ | 9,688,500 | $ | 10,001,000 | |||||
Note payable - Other | 37,677 | 45,468 | |||||||
9,726,177 | 10,046,468 | ||||||||
Less current portion | (1,282,159 | ) | (1,281,760 | ) | |||||
$ | 8,444,018 | $ | 8,764,708 | ||||||
Schedule of Maturities of Long-term Debt | ' | ||||||||
Years Ending March 31, | Amount | ||||||||
2015 | $ | 1,282,159 | |||||||
2016 | 1,255,517 | ||||||||
2017 | 1,250,000 | ||||||||
2018 | 1,251,000 | ||||||||
2019 | 1,250,000 | ||||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Fair Value Measurements [Abstract] | ' | ||||||||||||||||
Fair Value, by Balance Sheet Grouping | ' | ||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | ||||||||||||||
31-Mar-14 | |||||||||||||||||
Assets: | |||||||||||||||||
Derivative financial instruments, forward contracts | $ | 210,368 | $ | — | $ | 210,368 | $ | — | |||||||||
Liabilities: | |||||||||||||||||
Derivative financial instruments, futures contracts | $ | (1,692,013 | ) | $ | (1,692,013 | ) | $ | — | $ | — | |||||||
forward contracts | (849,278 | ) | — | (849,278 | ) | — | |||||||||||
December 31, 2013* | |||||||||||||||||
Assets: | |||||||||||||||||
Derivative financial instruments, futures contracts | $ | 249,688 | $ | 249,688 | $ | — | $ | — | |||||||||
Liabilities: | |||||||||||||||||
Derivative financial instruments, forward contracts | $ | (978,935 | ) | $ | — | $ | (978,935 | ) | $ | — | |||||||
Related_Party_Transactions_Tab
Related Party Transactions (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Related Party Transactions [Abstract] | ' | ||||||||
Schedule of Related Party Transactions | ' | ||||||||
Three Months Ended March 31, | |||||||||
2014 | 2013 | ||||||||
Revenue - ethanol | $ | 30,921,477 | $ | 27,674,376 | |||||
Revenue - distiller's grains and corn oil | 2,589,760 | 1,784,571 | |||||||
Marketing fees - ethanol | 32,903 | 64,152 | |||||||
Marketing fees - distillers grains and corn oil | 14,667 | 9,474 | |||||||
31-Mar-14 | December 31, 2013* | ||||||||
Amounts due included in accounts receivable | $ | 2,158,295 | $ | 2,382,068 | |||||
Nature_of_Operations_Details
Nature of Operations (Details) (Ethanol [Member], Product [Member]) | 3 Months Ended |
Mar. 31, 2014 | |
gal | |
Ethanol [Member] | Product [Member] | ' |
Product Information [Line Items] | ' |
Annual production capacity | 40,000,000 |
Derivative_Instruments_Balance
Derivative Instruments - Balance Sheet (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 |
Current Assets [Member] | Current Assets [Member] | Future [Member] | Future [Member] | Future [Member] | Future [Member] | Forward Contracts [Member] | Forward Contracts [Member] | Forward Contracts [Member] | Forward Contracts [Member] | Forward Contracts [Member] | Forward Contracts [Member] | |||
Not Designated as Hedging Instrument [Member] | Not Designated as Hedging Instrument [Member] | Current Assets [Member] | Current Assets [Member] | Current Liabilities [Member] | Current Liabilities [Member] | Corn [Member] | Natural Gas [Member] | Current Assets [Member] | Current Assets [Member] | Current Liabilities [Member] | Current Liabilities [Member] | |||
Not Designated as Hedging Instrument [Member] | Not Designated as Hedging Instrument [Member] | Not Designated as Hedging Instrument [Member] | Not Designated as Hedging Instrument [Member] | bu | MMBTU | Not Designated as Hedging Instrument [Member] | Not Designated as Hedging Instrument [Member] | Not Designated as Hedging Instrument [Member] | Not Designated as Hedging Instrument [Member] | |||||
Derivatives, Fair Value [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Product usage, percentage | ' | ' | ' | ' | ' | ' | ' | ' | 33.00% | ' | ' | ' | ' | ' |
Derivative, Number of Instruments Held | ' | ' | ' | ' | ' | ' | ' | ' | 5,700,000 | 0 | ' | ' | ' | ' |
Derivative Liability | ' | ' | ' | ' | ' | ' | ' | ' | $639,000 | ' | ' | ' | ' | ' |
Derivative, Average Price Per Unit | ' | ' | ' | ' | ' | ' | ' | ' | 4.44 | ' | ' | ' | ' | ' |
Derivative Assets, Current | ' | ' | -1,481,644 | 249,688 | 0 | 249,688 | ' | ' | ' | ' | 210,368 | 0 | ' | ' |
Derivative Liabilities, Current | ' | ' | ' | ' | ' | ' | -1,692,012 | 0 | ' | ' | ' | ' | -849,278 | -978,935 |
Other Receivables from Broker-Dealers and Clearing Organizations | 3,080,912 | 1,252,886 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Derivative Instruments and Hedges, Assets | $1,599,268 | $1,502,574 | $1,599,268 | $1,502,574 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Derivative_Instruments_Income_
Derivative Instruments - Income Statement (Details) (Cost of Sales [Member], Not Designated as Hedging Instrument [Member], USD $) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Future [Member] | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Derivative Instruments, Gain (Loss) Recognized in Income | ($2,713,674) | ($239,414) |
Forward Contracts [Member] | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Derivative Instruments, Gain (Loss) Recognized in Income | $14,151 | ($62,951) |
Inventory_Details
Inventory (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
Inventory [Abstract] | ' | ' |
Raw Materials | $6,510,093 | $3,645,811 |
Finished Goods | 1,205,009 | 1,544,426 |
Work in Process | 604,312 | 748,965 |
Parts Inventory | 959,444 | 935,005 |
Inventory | $9,278,858 | $6,874,207 |
Investments_Details
Investments (Details) (USD $) | 3 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | |
Schedule of Equity Method Investments [Line Items] | ' | ' | ' |
Investments | $18,309,355 | ' | $16,078,269 |
Equity in net income of investments | 2,216,087 | 130,303 | ' |
Equity Method Investment, Summarized Financial Information, Gross Profit (Loss) | 26,927,277 | 2,746,477 | ' |
Renewable Products Marketing Group, LLC (RPMG) [Member] | ' | ' | ' |
Schedule of Equity Method Investments [Line Items] | ' | ' | ' |
Equity Method Investment, Ownership Percentage | 7.00% | ' | ' |
Investments | 2,873,000 | ' | 2,793,000 |
Prairie Gold Venture Partnership, LLC (PGVP) [Member] | ' | ' | ' |
Schedule of Equity Method Investments [Line Items] | ' | ' | ' |
Equity Method Investment, Ownership Percentage | 9.00% | ' | ' |
Investments | 1,174,000 | ' | 1,174,000 |
Lawrenceville Tanks, LLC [Member] | ' | ' | ' |
Schedule of Equity Method Investments [Line Items] | ' | ' | ' |
Equity Method Investment, Ownership Percentage | 10.00% | ' | ' |
Investments | 110,000 | ' | ' |
Guardian Hankinson, LLC [Member] | ' | ' | ' |
Schedule of Equity Method Investments [Line Items] | ' | ' | ' |
Equity Method Investment, Ownership Percentage | ' | ' | 10.00% |
Investments | 14,135,000 | ' | 12,000,000 |
Net Income (Loss) from Equity Method Investments, Percentage | 10.00% | ' | ' |
Equity in net income of investments | 2,136,000 | ' | ' |
Guardian Energy Management [Member] | ' | ' | ' |
Schedule of Equity Method Investments [Line Items] | ' | ' | ' |
Equity Method Investment, Ownership Percentage | 17.00% | ' | ' |
Investments | 15,000 | ' | 0 |
Investments [Member] | ' | ' | ' |
Schedule of Equity Method Investments [Line Items] | ' | ' | ' |
Equity in net income of investments | 80,000 | ' | ' |
Equity Method Investment, Summarized Financial Information, Current Assets | 218,295,344 | ' | 165,653,623 |
Equity Method Investment, Summarized Financial Information, Noncurrent Assets | 182,633,073 | ' | 184,749,457 |
Equity Method Investment, Summarized Financial Information, Current Liabilities | 168,172,866 | ' | 116,462,830 |
Equity Method Investment, Summarized Financial Information, Noncurrent Liabilities | 43,256,155 | ' | 67,216,061 |
Equity Method Investment Summarized Financial Information, Equity | 189,499,396 | ' | 166,724,189 |
Equity Method Investment, Summarized Financial Information, Revenue | 87,414,233 | 2,748,690 | ' |
Equity Method Investment, Summarized Financial Information, Net Income (Loss) | $20,363,963 | $1,691,724 | ' |
Short_Term_Note_Payable_Detail
Short Term Note Payable (Details) (Farm Credit Services of America [Member], Line of Credit [Member], USD $) | 3 Months Ended | |
Mar. 31, 2014 | Dec. 31, 2013 | |
Farm Credit Services of America [Member] | Line of Credit [Member] | ' | ' |
Line of Credit Facility [Line Items] | ' | ' |
Debt Instrument, Basis Spread on Variable Rate | 3.10% | ' |
Line of Credit Facility, Maximum Borrowing Capacity | $10,000,000 | ' |
Line of Credit Facility, Interest Rate at Period End | 3.25% | ' |
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.25% | ' |
Line of Credit Facility, Amount Outstanding | 0 | 0 |
Line of Credit Facility, Remaining Borrowing Capacity | $10,000,000 | $10,000,000 |
Long_Term_Note_Payable_Details
Long Term Note Payable (Details) (USD $) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2014 | Dec. 31, 2013 | |
Debt Instrument [Line Items] | ' | ' |
Long-term Debt | $9,726,177 | $10,046,468 |
Long-term Debt, Current Maturities | -1,282,159 | -1,281,760 |
Notes payable, net of current maturities | 8,444,018 | 8,764,708 |
Farm Credit Services of America [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Notes Payable | 9,688,500 | 10,001,000 |
Notes Payable, Other Payables [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Notes Payable | 37,677 | 45,468 |
Farm Credit Services of America [Member] | Revolving Credit Facility [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Line of Credit Facility, Maximum Borrowing Capacity | 5,000,000 | ' |
Line of Credit Facility, Interest Rate at Period End | 3.50% | ' |
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.35% | ' |
Line of Credit Facility, Amount Outstanding | 1,000 | 1,000 |
Line of Credit Facility, Remaining Borrowing Capacity | 4,999,000 | 4,999,000 |
Debt Instrument, Basis Spread on Variable Rate | 3.35% | ' |
Farm Credit Services of America [Member] | Term Note [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Debt Instrument, Basis Spread on Variable Rate | 3.35% | ' |
Debt Instrument, Face Amount | ' | 10,000,000 |
Debt Instrument, Interest Rate at Period End | ' | 3.50% |
Debt Instrument, Periodic Payment, Principal | ' | $312,500 |
Long_Term_Notes_Payable_Maturi
Long Term Notes Payable Maturities of Long Term Debt (Details) (USD $) | Mar. 31, 2014 |
Maturities of Long-term Debt [Abstract] | ' |
Long-term Debt, Repayments, 2015 | $1,282,159 |
Long-term Debt, Repayments, 2016 | 1,255,517 |
Long-term Debt, Repayments, 2017 | 1,250,000 |
Long-term Debt, Repayments, 2018 | 1,251,000 |
Long-term Debt, Repayments, 2019 | $1,250,000 |
Fair_Value_Measurements_Detail
Fair Value Measurements (Details) (Fair Value, Measurements, Recurring [Member], USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
Future [Member] | Reported Value Measurement [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Derivative Asset | $210,368 | $249,688 |
Derivative Liability | -1,692,013 | -978,935 |
Future [Member] | Fair Value, Inputs, Level 1 [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Derivative Asset | 0 | 249,688 |
Derivative Liability | -1,692,013 | 0 |
Future [Member] | Fair Value, Inputs, Level 2 [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Derivative Asset | 210,368 | 0 |
Derivative Liability | 0 | -978,935 |
Future [Member] | Fair Value, Inputs, Level 3 [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Derivative Asset | 0 | 0 |
Derivative Liability | 0 | 0 |
Forward Contracts [Member] | Reported Value Measurement [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Derivative Liability | -849,278 | ' |
Forward Contracts [Member] | Fair Value, Inputs, Level 1 [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Derivative Liability | 0 | ' |
Forward Contracts [Member] | Fair Value, Inputs, Level 2 [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Derivative Liability | -849,278 | ' |
Forward Contracts [Member] | Fair Value, Inputs, Level 3 [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Derivative Liability | $0 | ' |
Related_Party_Transactions_Det
Related Party Transactions (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 |
Renewable Products Marketing Group, LLC (RPMG) [Member] | Ethanol [Member] | Ethanol [Member] | Dstiller's Grains and Corn Oil [Member] | Dstiller's Grains and Corn Oil [Member] | |||
Renewable Products Marketing Group, LLC (RPMG) [Member] | Renewable Products Marketing Group, LLC (RPMG) [Member] | Renewable Products Marketing Group, LLC (RPMG) [Member] | Renewable Products Marketing Group, LLC (RPMG) [Member] | ||||
Related Party Transaction [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Equity Method Investment, Ownership Percentage | ' | ' | 7.00% | ' | ' | ' | ' |
Revenue from Related Parties | ' | ' | ' | $30,921,477 | $27,674,376 | $2,589,760 | $1,784,571 |
Marketing Expenses from Transactions with Related Party | ' | ' | ' | 32,903 | 64,152 | 14,667 | 9,474 |
Due from Related Parties, Current | $2,158,295 | $2,382,068 | ' | ' | ' | ' | ' |
Commitments_Details
Commitments (Details) (USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2014 |
Commitments [Abstract] | ' |
Construction in Progress Expenditures Incurred but Not yet Paid | $7 |
Subsequent_Events_Details
Subsequent Events (Details) (USD $) | 3 Months Ended |
Mar. 31, 2014 | |
Subsequent Events [Abstract] | ' |
Distribution Made to Limited Liability Company (LLC) Member, Cash Distributions Declared | $7,405,000 |
Distribution Made to Limited Liability Company (LLC) Member, Distributions Declared, Per Unit | $0.25 |