Lake Area Corn Processors (LKCRU) 10-Q 12 Aug 16 2016 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2016	Aug. 12, 2016
Document Information [Line Items]
Entity Registrant Name	LAKE AREA CORN PROCESSORS LLC
Entity Central Index Key	1,156,174
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Document Type	10-Q
Document Period End Date	Jun. 30, 2016
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q2
Amendment Flag	false
Entity Common Stock, Shares Outstanding		29,620,000

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($)	Jun. 30, 2016	Dec. 31, 2015
CURRENT ASSETS
Cash and cash equivalents	$ 6,819,567	$ 8,329,166
Accounts receivable	2,785,630	1,503,956
Other receivables	25,105	1,462,207
Inventory	7,848,033	7,565,490
Derivative financial instruments	1,406,893	676,991
Prepaid expenses	176,846	281,555
Total current assets	19,062,074	19,819,365
PROPERTY AND EQUIPMENT
Land	874,473	874,473
Land improvements	4,113,834	4,099,149
Buildings	8,955,206	8,955,206
Equipment	52,432,954	52,041,058
Construction in progress	4,279,391	1,979,945
Gross Property and Equipment	70,655,858	67,949,831
Less accumulated depreciation	(35,553,622)	(33,765,772)
Net property and equipment	35,102,236	34,184,059
OTHER ASSETS
Goodwill	10,395,766	10,395,766
Investments	12,864,090	15,224,992
Other	88,568	122,332
Total other assets	23,348,424	25,743,090
TOTAL ASSETS	77,512,734	79,746,514
CURRENT LIABILITIES
Outstanding checks in excess of bank balance	3,861,970	477,166
Accounts payable	3,075,856	9,671,856
Accrued liabilities	453,138	498,735
Derivative financial instruments	1,455,045	607,571
Other	118,465	120,465
Total current liabilities	8,964,474	11,375,793
LONG-TERM LIABILITIES
Notes payable, net of current maturities	1,000	1,000
Other	55,475	105,475
Total long-term liabilities	56,475	106,475
COMMITMENTS AND CONTINGENCIES
MEMBERS' EQUITY (29,620,000 units issued and outstanding)	68,491,785	68,264,246
TOTAL LIABILITIES AND MEMBERS' EQUITY	$ 77,512,734	$ 79,746,514

Consolidated Balance Sheets Par

Consolidated Balance Sheets Parenthetical - shares	Jun. 30, 2016	Dec. 31, 2015
MEMBERS' EQUITY, units issued and outstanding	29,620,000	29,620,000

Consolidated Statements of Oper

Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
REVENUES	$ 21,944,230	$ 23,680,338	$ 43,568,026	$ 44,395,483
COSTS OF REVENUES	19,104,586	19,980,671	39,473,770	39,999,813
GROSS PROFIT	2,839,644	3,699,667	4,094,256	4,395,670
OPERATING EXPENSES	860,379	883,462	1,795,613	1,947,267
INCOME FROM OPERATIONS	1,979,265	2,816,205	2,298,643	2,448,403
OTHER INCOME (EXPENSE)
Interest and other income	19,667	17,057	25,571	82,270
Business interruption claims recovery	0	500,000	0	500,000
Equity in net income of investments	532,247	1,241,092	867,848	1,784,800
Interest expense	(1,261)	(1,965)	(2,523)	(4,135)
Total other income	550,653	1,756,184	890,896	2,362,935
NET INCOME	$ 2,529,918	$ 4,572,389	$ 3,189,539	$ 4,811,338
BASIC AND DILUTED EARNINGS PER UNIT	$ 0.09	$ 0.15	$ 0.11	$ 0.16
WEIGHTED AVERAGE NUMBER OF UNITS OUTSTANDING FOR THE CALCULATION OF BASIC & DILUTED EARNINGS PER UNIT	29,620,000	29,620,000	29,620,000	29,620,000
DISTRIBUTIONS DECLARED PER UNIT	$ 0.10	$ 0	$ 0.10	$ 0.10

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) - USD ($)	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
OPERATING ACTIVITIES
Net income	$ 3,189,539	$ 4,811,338
Changes to net income affecting cash and cash equivalents
Depreciation and amortization	1,821,614	1,608,239
Distributions in excess of earnings from investments	2,360,902	5,220,285
Gain on involuntary conversion property and equipment	0	(825,709)
(Increase) decrease in
Receivables	155,428	(1,115,796)
Inventory	(282,543)	616,906
Prepaid expenses	104,709	125,911
Derivative financial instruments	117,572	(380,346)
Accounts payable	(6,557,696)	(3,524,018)
Accrued and other liabilities	(97,597)	(83,919)
NET CASH PROVIDED BY OPERATING ACTIVITIES	811,928	6,452,891
INVESTING ACTIVITIES
Insurance proceeds	0	1,500,000
Purchase of property and equipment	(2,744,331)	(3,365,760)
Purchase of investments	0	(15,000)
NET CASH USED IN INVESTING ACTIVITIES	(2,744,331)	(1,880,760)
FINANCING ACTIVITIES
Increase in outstanding checks in excess of bank balance	3,384,804	1,376,790
Principal payments on long-term notes payable	0	(13,708)
Distributions paid to members	(2,962,000)	(3,065,512)
NET CASH PROVIDED BY (USED FOR) FINANCING ACTIVITIES	422,804	(1,702,430)
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS	(1,509,599)	2,869,701
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD	8,329,166	6,104,383
CASH AND CASH EQUIVALENTS AT END OF PERIOD	6,819,567	8,974,084
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
Cash paid during the period for interest	2,522	4,836
Capital expenditures in accounts payable	$ 14,685	$ 79,084

Nature of Operations

Nature of Operations	6 Months Ended
	Jun. 30, 2016
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 interests in five companies in ethanol-related industries. See note 4 for further details.

Summary of Significant Accounti

Summary of Significant Accounting Policies	6 Months Ended
	Jun. 30, 2016
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 and six months ended June 30, 2016 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, 2015 , contained in the annual report on Form 10-K for 2015. 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 Inventories are generally valued using methods which approximate the lower of cost (first-in, first-out) or net realizable value. In the valuation of inventories and purchase commitments, net realizable value is based on estimated selling prices in the ordinary course of business less reasonably predictable costs of completion, disposal and transportation. 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 the Company manages by using forward or derivative instruments are price risk on anticipated purchases of corn and natural gas and the sale of ethanol, distillers grains and distillers corn oil. The Company is subject to market risk with respect to the price and availability of corn, the principal raw material the Company uses 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 June 30, 2016 , the Company is committed to purchasing approximately 4.6 million bushels of corn on a forward contract basis with an average price of $3.55 per bushel. The total corn purchase contracts represent 24% of the annual plant corn usage. The Company enters into firm-price purchase commitments with natural gas suppliers under which the Company agrees to buy natural gas at a price set in advance of the actual delivery of that natural gas. Under these arrangements, the Company assumes 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 June 30, 2016 , the Company does not have any firm-price purchase commitments for natural gas. The Company accounts for these transactions as normal purchases, and accordingly, does not mark these transactions to market. The Company enters into firm-price sales commitments with distillers grains customers under which the Company agrees to sell distillers grains at a price set in advance of the actual delivery of the distillers grains. Under these arrangements, the Company assumes the risk of a price increase in the market price of distillers grain between the time this price is fixed and the time the distillers grains are delivered. At June 30, 2016 , the Company is committed to selling approximately 23,000 dry equivalent tons of distillers grains with an average price of $122 per ton. The Company accounts for these transactions as normal sales, and accordingly, does not mark these commitments to market. The distillers grains sales represent approximately 15% of the projected annual plant production. The Company enters into firm-price sales commitments with distillers corn oil customers under which the Company agrees to sell distillers corn oil at a price set in advance of the actual delivery of the distillers corn oil. Under these arrangements, the Company assumes the risk of a price increase in the market price of distillers corn oil between the time this price is fixed and the time the distillers corn oil is delivered. At June 30, 2016 , the Company is committed to selling approximately 2,544,000 pounds of distillers corn oil with an average price of $0.30 per pound. The Company accounts for these transactions as normal sales, and accordingly, does not mark these commitments to market. The distillers corn oil sales represent approximately 22% of the projected annual plant production. The Company does not have any firm-priced sales commitments for ethanol as of June 30, 2016 . 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 the Company's 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. Derivatives not designated as hedging instruments at June 30, 2016 and December 31, 2015 were as follows: Balance Sheet Classification June 30, 2016 December 31, 2015* Forward contracts in gain position $ — $ 300 Futures contracts in gain position 1,272,938 189,244 Total forward and futures contracts 1,272,938 189,544 Cash held by broker 133,955 487,447 Current Assets $ 1,406,893 $ 676,991 Forward contracts in loss position (Current Liabilities) $ (1,455,045 ) $ (607,571 ) *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 June 30, Classification 2016 2015 Net realized and unrealized gains (losses) related to purchase contracts: Futures contracts Cost of Revenues $ 474,970 $ (613,955 ) Forward contracts Cost of Revenues (653,789 ) 412,239 Statement of Operations Six Months Ended June 30, Classification 2016 2015 Net realized and unrealized gains (losses) related to purchase contracts: Futures contracts Cost of Revenues $ 730,322 $ 65,797 Forward contracts Cost of Revenues (1,166,915 ) 302,101 Investments The Company has investment interests in five companies in related industries. All of these interests are at ownership shares less than 20%. These investments are flow-through entities and are being accounted for by the equity method of accounting under which the Company’s share of net income is recognized as income in the Company’s statements of income and added to the investment account. Distributions or dividends received from the investments are treated as a reduction of the investment account. The Company consistently follows the practice of recognizing the net income from investments based on the most recent reliable data. 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 net realizable value accounting for inventory and forward purchase contracts and goodwill impairment evaluation.

Inventory

Inventory	6 Months Ended
	Jun. 30, 2016
Inventory [Abstract]
Inventory	INVENTORY Inventory consisted of the following as of June 30, 2016 and December 31, 2015 : June 30, 2016 December 31, 2015* Raw materials $ 5,156,276 $ 4,257,537 Finished goods 828,084 1,642,684 Work in process 557,607 570,510 Parts inventory 1,306,066 1,094,759 $ 7,848,033 $ 7,565,490 *Derived from audited financial statements.

Investments (Notes)

Investments (Notes)	6 Months Ended
	Jun. 30, 2016
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 March 31, 2016 unaudited interim results. The carrying amount of the Company’s investment was approximately $1,562,000 and $2,141,000 as of June 30, 2016 and December 31, 2015 , respectively. Dakota Ethanol has a 6% 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 March 31, 2016 unaudited interim results. The carrying amount of the Company’s investment was approximately $867,000 as of June 30, 2016 and December 31, 2015 . Dakota Ethanol has a 10% investment interest in Lawrenceville Tanks, LLC (LT), a partnership which owns and operates 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 June 30, 2016 unaudited interim results. The carrying amount of the Company’s investment was approximately $666,000 and $577,000 as of June 30, 2016 and December 31, 2015 , 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 June 30, 2016 unaudited interim results. The carrying amount of the Company’s investment was approximately $9,732,000 and $11,597,000 as of June 30, 2016 and December 31, 2015 , 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 GEM is based on GEM’s June 30, 2016 unaudited interim results. The carrying amount of the Company’s investment was approximately $36,000 and $41,000 as of June 30, 2016 and December 31, 2015 . Condensed, combined unaudited financial information of the Company’s investments in RPMG, PGVP, LT, GH and GEM is as follows: Balance Sheet June 30, 2016 December 31, 2015 Current Assets $ 177,611,605 $ 160,690,612 Other Assets 160,094,646 163,293,989 Current Liabilities 145,620,951 117,783,636 Long-term Liabilities 45,278,724 37,674,031 Members' Equity 146,806,576 168,526,934 Three Months Ended Income Statement June 30, 2016 June 30, 2015 Revenue $ 62,275,767 $ 70,327,448 Gross Profit 13,438,168 18,430,572 Net Income 5,557,514 12,957,863 Six Months Ended Income Statement June 30, 2016 June 30, 2015 Revenue $ 119,767,917 $ 134,181,321 Gross Profit 23,742,714 30,443,936 Net Income 9,273,822 18,871,284 The following table shows the condensed financial information of GH, which represents greater than 10% of the Company's net income as of June 30, 2016 : Balance Sheet June 30, 2016 December 31, 2015 Current Assets $ 22,358,862 $ 30,957,066 Other Assets 141,792,354 144,336,737 Current Liabilities 21,549,983 21,819,143 Long-term Liabilities 45,278,724 37,502,031 Members' Equity 97,322,509 115,972,629 Three Months Ended Income Statement June 30, 2016 June 30, 2015 Revenue $ 58,245,962 $ 66,329,663 Gross Profit 10,931,948 15,525,193 Net Income 4,428,858 11,251,033 Six Months Ended Income Statement June 30, 2016 June 30, 2015 Revenue $ 111,813,735 $ 126,056,767 Gross Profit 18,710,088 24,563,939 Net Income 6,849,880 15,346,925 The Company recorded equity in net income of approximately $443,000 and $685,000 from GH for the three and six months ended June 30, 2016 , respectively. The Company recorded equity in net income of approximately $1,125,000 and $1,535,000 from GH for the three and six months ended June 30, 2015, respectively. The Company recorded equity in net income of approximately $89,000 and $183,000 from its other investments for the three and six months ended June 30, 2016 , respectively. The Company recorded equity in net income of approximately $116,000 and $250,000 from its other investments for the three and six months ended June 30, 2015, respectively.

Short Term Note Payable

Short Term Note Payable	6 Months Ended
	Jun. 30, 2016
Short Term Note Payable [Abstract]
Short Term Note Payable	REVOLVING OPERATING NOTE On November 11, 2014, Dakota Ethanol executed a revolving promissory note from Farm Credit Services of America (FCSA) in on amount up to $10,000,000 or the amount available in accordance with the borrowing base calculation. Interest on the outstanding principal balances will accrue at 300 basis points above the 1 month LIBOR rate and is not subject to a floor. The rate was 3.45% at June 30, 2016 . 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 November 1, 2016. On June 30, 2016 , Dakota Ethanol had $0 outstanding and $5,574,000 available to be drawn on the revolving promissory note under the borrowing base.

Long Term Notes Payable

Long Term Notes Payable	6 Months Ended
	Jun. 30, 2016
Long Term Note Payable [Abstract]
Long Term Notes Payable	LONG-TERM NOTES PAYABLE Dakota Ethanol has a long-term note payable with FCSA. As part of the note payable agreement, 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 note is collateralized by the ethanol plant and equipment, its accounts receivable and inventory. On November 11, 2014, Dakota Ethanol executed a revolving promissory note from FCSA in the amount of $15,000,000 . The amount Dakota Ethanol can borrow on the note decreases by $750,000 semi-annually starting on April 1, 2015 until the maximum balance reaches $7.5 million on October 1, 2019. The note matures on October 1, 2024. Interest on the outstanding principal balance will accrue at 325 basis points above the 1 month LIBOR rate and is not subject to a floor. The rate was 3.70% at June 30, 2016 . The note contains a non-use fee of 0.5% on the unused portion of the note. On June 30, 2016 , Dakota Ethanol had $1,000 outstanding and $12,749,000 available to be drawn on the note.

Fair Value Measurements (Notes)

Fair Value Measurements (Notes)	6 Months Ended
	Jun. 30, 2016
Fair Value Disclosures [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 June 30, 2016 and December 31, 2015 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 June 30, 2016 Assets: Derivative financial instruments, futures contracts $ 1,272,938 $ 1,272,938 $ — $ — Liabilities: Derivative financial instruments, forward contracts $ (1,455,045 ) $ — $ (1,455,045 ) $ — December 31, 2015* Assets: Derivative financial instruments, futures contracts $ 189,244 $ 189,244 $ — $ — forward contracts 300 — 300 — Liabilities: Derivative financial instruments, forward contracts $ (607,571 ) $ — $ (607,571 ) $ — *Derived from audited financial statements. During the three and six months ended June 30, 2016 , the Company did not make any changes between Level 1 and Level 2 assets and liabilities. As of June 30, 2016 and December 31, 2015 , the Company did not have any Level 3 assets or liabilities.

Related Party Transactions

Related Party Transactions	6 Months Ended
	Jun. 30, 2016
Related Party Transactions [Abstract]
Related Party Transactions	RELATED PARTY TRANSACTIONS Dakota Ethanol has a 7% interest in RPMG, and Dakota Ethanol has entered into marketing agreements with RPMG for the exclusive rights to market, sell and distribute the entire ethanol, dried distiller's grains and corn oil inventories 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 June 30 Six Months Ended June 30 2016 2015 2016 2015 Revenues ethanol $ 17,247,151 $ 18,083,461 $ 33,465,320 $ 33,619,109 Revenues distiller's dried grains 1,023,376 1,793,609 2,156,303 2,707,266 Revenues corn oil 673,807 726,194 1,297,717 1,518,166 Marketing fees ethanol 42,057 42,246 84,114 84,493 Marketing fees distiller's dried grains 6,410 9,601 13,165 16,787 Marketing fees corn oil 6,226 7,505 12,868 15,419 June 30, 2016 December 31, 2015* Amounts due included in accounts receivable $ 2,323,173 $ 939,705 *Derived from audited financial statements. The Company purchased corn and services from members of its Board of Directors that farm and operate local businesses. The Company also purchased ingredients from RPMG. Purchases during the fiscal quarters ended June 30, 2016 and 2015 totaled approximately $1,390,000 and $730,000 , respectively. As of June 30, 2016 and December 31, 2015 the amount we owed to related parties was approximately $17,000 and $20,000 , respectively.

Commitments (Notes)

Commitments (Notes)	6 Months Ended
	Jun. 30, 2016
Commitments [Abstract]
Commitments	COMMITMENTS Dakota Ethanol has started a project to expand the railroad track siding. The estimated cost of the total project is approximately $7.0 million . The total cost of the project to date is approximately $4.7 million . The project is expected to be completed in the third quarter of 2016. Dakota Ethanol will pay for the upgrades with cash flows from operations and the long-term revolving debt currently in place.

Insurance Claims (Notes)

Insurance Claims (Notes)	6 Months Ended
	Jun. 30, 2016
Unusual or Infrequent Items, or Both [Abstract]
Business Insurance Recoveries [Text Block]	INSURANCE CLAIMS Dakota Ethanol experienced property damage to grain handling equipment in June 2014. The damages were covered by property and business interruption insurance policies. The Company continued to use the equipment through May 2015, at which time the equipment was disposed of resulting in a loss of approximately $674,000 . Insurance proceeds of $2,000,000 , consisting of $1,500,000 from the property insurance claim and $500,000 from the business interruption claim, were received in the second quarter of 2015. The loss on disposal of damaged assets and property insurance proceeds are both recorded in cost of revenues in the statements of income.

Subsequent Event (Notes)

Subsequent Event (Notes)	6 Months Ended
	Jun. 30, 2016
Subsequent Events [Abstract]
Subsequent Events [Text Block]	SUBSEQUENT EVENTS During July 2016, the Company declared and paid a distribution to its members of $2,962,000 , or $0.10 per capital unit, to unit holders of record as of July 1, 2016.

Accounting Policies

Accounting Policies	6 Months Ended
	Jun. 30, 2016
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 Inventories are generally valued using methods which approximate the lower of cost (first-in, first-out) or net realizable value. In the valuation of inventories and purchase commitments, net realizable value is based on estimated selling prices in the ordinary course of business less reasonably predictable costs of completion, disposal and transportation.
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 the Company manages by using forward or derivative instruments are price risk on anticipated purchases of corn and natural gas and the sale of ethanol, distillers grains and distillers corn oil. The Company is subject to market risk with respect to the price and availability of corn, the principal raw material the Company uses 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 June 30, 2016 , the Company is committed to purchasing approximately 4.6 million bushels of corn on a forward contract basis with an average price of $3.55 per bushel. The total corn purchase contracts represent 24% of the annual plant corn usage. The Company enters into firm-price purchase commitments with natural gas suppliers under which the Company agrees to buy natural gas at a price set in advance of the actual delivery of that natural gas. Under these arrangements, the Company assumes 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 June 30, 2016 , the Company does not have any firm-price purchase commitments for natural gas. The Company accounts for these transactions as normal purchases, and accordingly, does not mark these transactions to market. The Company enters into firm-price sales commitments with distillers grains customers under which the Company agrees to sell distillers grains at a price set in advance of the actual delivery of the distillers grains. Under these arrangements, the Company assumes the risk of a price increase in the market price of distillers grain between the time this price is fixed and the time the distillers grains are delivered. At June 30, 2016 , the Company is committed to selling approximately 23,000 dry equivalent tons of distillers grains with an average price of $122 per ton. The Company accounts for these transactions as normal sales, and accordingly, does not mark these commitments to market. The distillers grains sales represent approximately 15% of the projected annual plant production. The Company enters into firm-price sales commitments with distillers corn oil customers under which the Company agrees to sell distillers corn oil at a price set in advance of the actual delivery of the distillers corn oil. Under these arrangements, the Company assumes the risk of a price increase in the market price of distillers corn oil between the time this price is fixed and the time the distillers corn oil is delivered. At June 30, 2016 , the Company is committed to selling approximately 2,544,000 pounds of distillers corn oil with an average price of $0.30 per pound. The Company accounts for these transactions as normal sales, and accordingly, does not mark these commitments to market. The distillers corn oil sales represent approximately 22% of the projected annual plant production. The Company does not have any firm-priced sales commitments for ethanol as of June 30, 2016 . 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 the Company's 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. Derivatives not designated as hedging instruments at June 30, 2016 and December 31, 2015 were as follows: Balance Sheet Classification June 30, 2016 December 31, 2015* Forward contracts in gain position $ — $ 300 Futures contracts in gain position 1,272,938 189,244 Total forward and futures contracts 1,272,938 189,544 Cash held by broker 133,955 487,447 Current Assets $ 1,406,893 $ 676,991 Forward contracts in loss position (Current Liabilities) $ (1,455,045 ) $ (607,571 ) *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 June 30, Classification 2016 2015 Net realized and unrealized gains (losses) related to purchase contracts: Futures contracts Cost of Revenues $ 474,970 $ (613,955 ) Forward contracts Cost of Revenues (653,789 ) 412,239 Statement of Operations Six Months Ended June 30, Classification 2016 2015 Net realized and unrealized gains (losses) related to purchase contracts: Futures contracts Cost of Revenues $ 730,322 $ 65,797 Forward contracts Cost of Revenues (1,166,915 ) 302,101
Investments	Investments The Company has investment interests in five companies in related industries. All of these interests are at ownership shares less than 20%. These investments are flow-through entities and are being accounted for by the equity method of accounting under which the Company’s share of net income is recognized as income in the Company’s statements of income and added to the investment account. Distributions or dividends received from the investments are treated as a reduction of the investment account. The Company consistently follows the practice of recognizing the net income from investments based on the most recent reliable data.
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 net realizable value accounting for inventory and forward purchase contracts and goodwill impairment evaluation

Summary of Significant Accoun18

Summary of Significant Accounting Policies (Tables)	6 Months Ended
	Jun. 30, 2016
Summary of Significant Accounting Policies [Abstract]
Derivatives Not Designated as Hedging Instruments	Derivatives not designated as hedging instruments at June 30, 2016 and December 31, 2015 were as follows: Balance Sheet Classification June 30, 2016 December 31, 2015* Forward contracts in gain position $ — $ 300 Futures contracts in gain position 1,272,938 189,244 Total forward and futures contracts 1,272,938 189,544 Cash held by broker 133,955 487,447 Current Assets $ 1,406,893 $ 676,991 Forward contracts in loss position (Current Liabilities) $ (1,455,045 ) $ (607,571 ) *Derived from audited financial statements.
Net realized and unrealized gains (losses) related to purchase contracts	Statement of Operations Three Months Ended June 30, Classification 2016 2015 Net realized and unrealized gains (losses) related to purchase contracts: Futures contracts Cost of Revenues $ 474,970 $ (613,955 ) Forward contracts Cost of Revenues (653,789 ) 412,239 Statement of Operations Six Months Ended June 30, Classification 2016 2015 Net realized and unrealized gains (losses) related to purchase contracts: Futures contracts Cost of Revenues $ 730,322 $ 65,797 Forward contracts Cost of Revenues (1,166,915 ) 302,101

Inventory (Tables)

Inventory (Tables)	6 Months Ended
	Jun. 30, 2016
Inventory [Abstract]
Schedule of Inventory	Inventory consisted of the following as of June 30, 2016 and December 31, 2015 : June 30, 2016 December 31, 2015* Raw materials $ 5,156,276 $ 4,257,537 Finished goods 828,084 1,642,684 Work in process 557,607 570,510 Parts inventory 1,306,066 1,094,759 $ 7,848,033 $ 7,565,490 *Derived from audited financial statements.

Investments Investments (Tables

Investments Investments (Tables)	6 Months Ended
	Jun. 30, 2016
Schedule of Equity Method Investments [Line Items]
Equity Method Investments	Balance Sheet June 30, 2016 December 31, 2015 Current Assets $ 177,611,605 $ 160,690,612 Other Assets 160,094,646 163,293,989 Current Liabilities 145,620,951 117,783,636 Long-term Liabilities 45,278,724 37,674,031 Members' Equity 146,806,576 168,526,934 Three Months Ended Income Statement June 30, 2016 June 30, 2015 Revenue $ 62,275,767 $ 70,327,448 Gross Profit 13,438,168 18,430,572 Net Income 5,557,514 12,957,863 Six Months Ended Income Statement June 30, 2016 June 30, 2015 Revenue $ 119,767,917 $ 134,181,321 Gross Profit 23,742,714 30,443,936 Net Income 9,273,822 18,871,284 The following table shows the condensed financial information of GH, which represents greater than 10% of the Company's net income as of June 30, 2016 : Balance Sheet June 30, 2016 December 31, 2015 Current Assets $ 22,358,862 $ 30,957,066 Other Assets 141,792,354 144,336,737 Current Liabilities 21,549,983 21,819,143 Long-term Liabilities 45,278,724 37,502,031 Members' Equity 97,322,509 115,972,629 Three Months Ended Income Statement June 30, 2016 June 30, 2015 Revenue $ 58,245,962 $ 66,329,663 Gross Profit 10,931,948 15,525,193 Net Income 4,428,858 11,251,033 Six Months Ended Income Statement June 30, 2016 June 30, 2015 Revenue $ 111,813,735 $ 126,056,767 Gross Profit 18,710,088 24,563,939 Net Income 6,849,880 15,346,925

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	6 Months Ended
	Jun. 30, 2016
Fair Value Disclosures [Abstract]
Fair Value, by Balance Sheet Grouping	Total Level 1 Level 2 Level 3 June 30, 2016 Assets: Derivative financial instruments, futures contracts $ 1,272,938 $ 1,272,938 $ — $ — Liabilities: Derivative financial instruments, forward contracts $ (1,455,045 ) $ — $ (1,455,045 ) $ — December 31, 2015* Assets: Derivative financial instruments, futures contracts $ 189,244 $ 189,244 $ — $ — forward contracts 300 — 300 — Liabilities: Derivative financial instruments, forward contracts $ (607,571 ) $ — $ (607,571 ) $ —

Related Party Transactions (Tab

Related Party Transactions (Tables)	6 Months Ended
	Jun. 30, 2016
Related Party Transactions [Abstract]
Schedule of Related Party Transactions	Three Months Ended June 30 Six Months Ended June 30 2016 2015 2016 2015 Revenues ethanol $ 17,247,151 $ 18,083,461 $ 33,465,320 $ 33,619,109 Revenues distiller's dried grains 1,023,376 1,793,609 2,156,303 2,707,266 Revenues corn oil 673,807 726,194 1,297,717 1,518,166 Marketing fees ethanol 42,057 42,246 84,114 84,493 Marketing fees distiller's dried grains 6,410 9,601 13,165 16,787 Marketing fees corn oil 6,226 7,505 12,868 15,419 June 30, 2016 December 31, 2015* Amounts due included in accounts receivable $ 2,323,173 $ 939,705

Nature of Operations (Details)

Nature of Operations (Details) gal in Millions	6 Months Ended
	Jun. 30, 2016gal
Product Information [Line Items]
Equity Method Investments, Number of Entities	5
Ethanol [Member] | Product [Member]
Product Information [Line Items]
Annual production capacity	40

Derivative Instruments - Balanc

Derivative Instruments - Balance Sheet (Details) - USD ($)	Jun. 30, 2016	Dec. 31, 2015
Derivatives, Fair Value [Line Items]
Derivative Instruments and Hedges, Liabilities	$ 1,455,045	$ 607,571
Derivative Instruments and Hedges, Assets	1,406,893	676,991
Current Assets [Member]
Derivatives, Fair Value [Line Items]
Cash held by broker	133,955	487,447
Current Assets [Member] | Not Designated as Hedging Instrument [Member]
Derivatives, Fair Value [Line Items]
Derivative Assets, Current	1,272,938	189,544
Derivative Instruments and Hedges, Assets	1,406,893	676,991
Other Current Liabilities [Member] | Not Designated as Hedging Instrument [Member]
Derivatives, Fair Value [Line Items]
Derivative Instruments and Hedges, Liabilities	1,455,045	607,571
Forward Contracts [Member] | Current Assets [Member] | Not Designated as Hedging Instrument [Member]
Derivatives, Fair Value [Line Items]
Derivative Assets, Current	0	300
Futures contracts in gain position [Member] | Future [Member] | Current Assets [Member] | Not Designated as Hedging Instrument [Member]
Derivatives, Fair Value [Line Items]
Derivative Assets, Current	$ 1,272,938	$ 189,244

Derivative Instruments - Income

Derivative Instruments - Income Statement (Details) - Not Designated as Hedging Instrument [Member] - Cost of Sales [Member] - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Forward Contracts [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, Gain (Loss) on Derivative, Net	$ (653,789)	$ 412,239	$ (1,166,915)	$ 302,101
Future [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, Gain (Loss) on Derivative, Net	$ 474,970	$ (613,955)	$ 730,322	$ 65,797

Summary of Significant Accoun26

Summary of Significant Accounting Policies Investments (Details) bu in Millions	6 Months Ended
	Jun. 30, 2016buT$ / T$ / bu
Derivative [Line Items]
Equity Method Investments, Number of Entities	5
Corn [Member]
Derivative [Line Items]
Product usage, percentage	24.00%
Derivative, Number of Instruments Held | bu	4.6
Derivative, Nonmonetary Notional Amount, Average Price Per Unit	3.55
Distillers Grain [Member]
Derivative [Line Items]
Product usage, percentage	15.00%
Derivative, Number of Instruments Held | T	23,000
Derivative, Nonmonetary Notional Amount, Average Price Per Unit | $ / T	122
Corn Oil [Member]
Derivative [Line Items]
Product usage, percentage	22.00%
Derivative, Number of Instruments Held	2,544,000
Derivative, Nonmonetary Notional Amount, Average Price Per Unit	0.30

Inventory (Details)

Inventory (Details) - USD ($)	Jun. 30, 2016	Dec. 31, 2015
Inventory [Abstract]
Raw Materials	$ 5,156,276	$ 4,257,537
Finished Goods	828,084	1,642,684
Work in Process	557,607	570,510
Parts Inventory	1,306,066	1,094,759
Inventory	$ 7,848,033	$ 7,565,490

Investments (Details)

Investments (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015
Schedule of Equity Method Investments [Line Items]
Investments	$ 12,864,090		$ 12,864,090		$ 15,224,992
Equity in net income of investments	532,247	$ 1,241,092	867,848	$ 1,784,800
Equity Method Investment, Summarized Financial Information, Current Assets	177,611,605		177,611,605		160,690,612
Equity Method Investment, Summarized Financial Information, Noncurrent Assets	160,094,646		160,094,646		163,293,989
Equity Method Investment, Summarized Financial Information, Current Liabilities	145,620,951		145,620,951		117,783,636
Equity Method Investment, Summarized Financial Information, Noncurrent Liabilities	45,278,724		45,278,724		37,674,031
Equity Method Investment Summarized Financial Information, Equity	146,806,576		146,806,576		168,526,934
Equity Method Investment, Summarized Financial Information, Revenue	62,275,767	70,327,448	119,767,917	134,181,321
Equity Method Investment, Summarized Financial Information, Gross Profit (Loss)	13,438,168	18,430,572	23,742,714	30,443,936
Equity Method Investment, Summarized Financial Information, Net Income (Loss)	$ 5,557,514	12,957,863	$ 9,273,822	18,871,284
Renewable Products Marketing Group, LLC (RPMG) [Member]
Schedule of Equity Method Investments [Line Items]
Equity Method Investment, Ownership Percentage	7.00%		7.00%
Investments	$ 1,562,000		$ 1,562,000		2,141,000
Prairie Gold Venture Partnership, LLC (PGVP) [Member]
Schedule of Equity Method Investments [Line Items]
Equity Method Investment, Ownership Percentage	6.00%		6.00%
Investments	$ 867,000		$ 867,000		867,000
Lawrenceville Tanks, LLC [Member]
Schedule of Equity Method Investments [Line Items]
Equity Method Investment, Ownership Percentage	10.00%		10.00%
Investments	$ 666,000		$ 666,000		577,000
Guardian Hankinson, LLC [Member]
Schedule of Equity Method Investments [Line Items]
Equity Method Investment, Ownership Percentage	10.00%		10.00%
Investments	$ 9,732,000		$ 9,732,000		11,597,000
Equity in net income of investments	443,000	1,125,000	685,000	1,535,000
Equity Method Investment, Summarized Financial Information, Current Assets	22,358,862		22,358,862		30,957,066
Equity Method Investment, Summarized Financial Information, Noncurrent Assets	141,792,354		141,792,354		144,336,737
Equity Method Investment, Summarized Financial Information, Current Liabilities	21,549,983		21,549,983		21,819,143
Equity Method Investment, Summarized Financial Information, Noncurrent Liabilities	45,278,724		45,278,724		37,502,031
Equity Method Investment Summarized Financial Information, Equity	97,322,509		97,322,509		115,972,629
Equity Method Investment, Summarized Financial Information, Revenue	58,245,962	66,329,663	111,813,735	126,056,767
Equity Method Investment, Summarized Financial Information, Gross Profit (Loss)	10,931,948	15,525,193	18,710,088	24,563,939
Equity Method Investment, Summarized Financial Information, Net Income (Loss)	4,428,858	11,251,033	6,849,880	15,346,925
GEM, LT, PGVP, RPMG Combined [Domain]
Schedule of Equity Method Investments [Line Items]
Equity in net income of investments	$ 89,000	$ 116,000	$ 183,000	$ 250,000
Guardian Energy Management [Member]
Schedule of Equity Method Investments [Line Items]
Equity Method Investment, Ownership Percentage	17.00%		17.00%
Investments	$ 36,000		$ 36,000		$ 41,000

Short Term Note Payable (Detail

Short Term Note Payable (Details) - Farm Credit Services of America [Member] - Line of Credit [Member]	6 Months Ended
	Jun. 30, 2016USD ($)
Line of Credit Facility [Line Items]
Debt Instrument, Basis Spread on Variable Rate	3.00%
Line of Credit Facility, Maximum Borrowing Capacity	$ 10,000,000
Line of Credit Facility, Interest Rate at Period End	3.45%
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage	0.25%
Line of Credit Facility, Amount Outstanding	$ 0
Line of Credit Facility, Remaining Borrowing Capacity	$ 5,574,000

Long Term Note Payable (Details

Long Term Note Payable (Details) - Farm Credit Services of America [Member] - Revolving Credit Facility [Member]	6 Months Ended
	Jun. 30, 2016USD ($)Rate
Debt Instrument [Line Items]
Line of Credit Facility, Current Borrowing Capacity	$ 15,000,000
Periodic decrease in line of credit availability	750,000
Line of Credit Facility, Maximum Borrowing Capacity	$ 7,500,000
Line of Credit Facility, Interest Rate at Period End	3.70%
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | Rate	0.50%
Line of Credit Facility, Amount Outstanding	$ 1,000
Line of Credit Facility, Remaining Borrowing Capacity	$ 12,749,000
Debt Instrument, Basis Spread on Variable Rate	3.25%

Fair Value Measurements (Detail

Fair Value Measurements (Details) - Fair Value, Measurements, Recurring [Member] - USD ($)	Jun. 30, 2016	Dec. 31, 2015
Future [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative Asset	$ 1,272,938	$ 189,244
Derivative Liability	0	0
Future [Member] | Fair Value, Inputs, Level 1 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative Asset	1,272,938	189,244
Derivative Liability	0	0
Future [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative Asset	0	0
Derivative Liability	0	0
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]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative Asset	0	300
Derivative Liability	1,455,045	607,571
Forward Contracts [Member] | Fair Value, Inputs, Level 1 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative Asset	0	0
Derivative Liability	0	0
Forward Contracts [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative Asset	0	300
Derivative Liability	1,455,045	607,571
Forward Contracts [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

Related Party Transactions (Det

Related Party Transactions (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015
Related Party Transaction [Line Items]
Related Party Transaction, Purchases from Related Party	$ 1,390,000	$ 730,000
Due from Related Parties, Current	2,323,173		$ 2,323,173		$ 939,705
Due to Related Parties	$ 17,000		$ 17,000		$ 20,000
Renewable Products Marketing Group, LLC (RPMG) [Member]
Related Party Transaction [Line Items]
Equity Method Investment, Ownership Percentage	7.00%		7.00%
Ethanol [Member] | Renewable Products Marketing Group, LLC (RPMG) [Member]
Related Party Transaction [Line Items]
Revenue from Related Parties	$ 17,247,151	18,083,461	$ 33,465,320	$ 33,619,109
Marketing Expenses from Transactions with Related Party	42,057	42,246	84,114	84,493
Distillers Grain [Member] | Renewable Products Marketing Group, LLC (RPMG) [Member]
Related Party Transaction [Line Items]
Revenue from Related Parties	1,023,376	1,793,609	2,156,303	2,707,266
Marketing Expenses from Transactions with Related Party	6,410	9,601	13,165	16,787
Corn Oil [Member] | Renewable Products Marketing Group, LLC (RPMG) [Member]
Related Party Transaction [Line Items]
Revenue from Related Parties	673,807	726,194	1,297,717	1,518,166
Marketing Expenses from Transactions with Related Party	$ 6,226	$ 7,505	$ 12,868	$ 15,419

Commitments (Details)

Commitments (Details) $ in Millions	6 Months Ended
	Jun. 30, 2016USD ($)
Long-term Purchase Commitment [Line Items]
Construction in progress, estimated cost	$ 7
Capital Addition Purchase Commitments [Member]
Long-term Purchase Commitment [Line Items]
Long-term Purchase Commitment, Amount	$ 4.7

Insurance Claims (Details)

Insurance Claims (Details)	6 Months Ended
	Jun. 30, 2016USD ($)
Unusual or Infrequent Item, or Both [Line Items]
Property, Plant and Equipment, Disposals	$ 674,000
Unusual or Infrequent Item, or Both, Insurance Proceeds	1,500,000
Proceeds from Insurance Settlement, Operating Activities	500,000
Natural Disasters and Other Casualty Events [Member]
Unusual or Infrequent Item, or Both [Line Items]
Unusual or Infrequent Item, or Both, Insurance Proceeds	$ 2,000,000

Subsequent Event (Details)

Subsequent Event (Details) - USD ($)	3 Months Ended	6 Months Ended
	Sep. 30, 2016	Jun. 30, 2016	Jun. 30, 2015
Subsequent Event [Line Items]
Distribution Made to Limited Liability Company (LLC) Member, Cash Distributions Paid		$ 2,962,000	$ 3,065,512
Subsequent Event [Member]
Subsequent Event [Line Items]
Distribution Made to Limited Liability Company (LLC) Member, Cash Distributions Paid	$ 2,962,000
Distribution Made to Limited Partner, Distributions Declared, Per Unit	$ 0.10