Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2016 | Nov. 14, 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 | Sep. 30, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 29,620,000 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Sep. 30, 2016 | Dec. 31, 2015 |
CURRENT ASSETS | ||
Cash and cash equivalents | $ 7,345,228 | $ 8,329,166 |
Accounts receivable | 4,099,634 | 1,503,956 |
Other receivables | 20,015 | 1,462,207 |
Inventory | 4,856,892 | 7,565,490 |
Derivative financial instruments | 1,044,170 | 676,991 |
Prepaid expenses | 116,500 | 281,555 |
Total current assets | 17,482,439 | 19,819,365 |
PROPERTY AND EQUIPMENT | ||
Land | 874,473 | 874,473 |
Land improvements | 9,418,802 | 4,099,149 |
Buildings | 8,955,206 | 8,955,206 |
Equipment | 52,432,954 | 52,041,058 |
Construction in progress | 255,449 | 1,979,945 |
Gross Property and Equipment | 71,936,884 | 67,949,831 |
Less accumulated depreciation | (36,415,292) | (33,765,772) |
Net property and equipment | 35,521,592 | 34,184,059 |
OTHER ASSETS | ||
Goodwill | 10,395,766 | 10,395,766 |
Investments | 12,542,291 | 15,224,992 |
Other | 71,686 | 122,332 |
Total other assets | 23,009,743 | 25,743,090 |
TOTAL ASSETS | 76,013,774 | 79,746,514 |
CURRENT LIABILITIES | ||
Outstanding checks in excess of bank balance | 862,536 | 477,166 |
Accounts payable | 4,812,444 | 9,671,856 |
Accrued liabilities | 442,376 | 498,735 |
Derivative financial instruments | 1,581,298 | 607,571 |
Other | 118,465 | 120,465 |
Total current liabilities | 7,817,119 | 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) | 68,140,180 | 68,264,246 |
TOTAL LIABILITIES AND MEMBERS' EQUITY | $ 76,013,774 | $ 79,746,514 |
Consolidated Balance Sheets Par
Consolidated Balance Sheets Parenthetical - shares | Sep. 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 | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
REVENUES | $ 20,983,806 | $ 22,038,423 | $ 64,551,832 | $ 66,433,906 |
COSTS OF REVENUES | 18,177,658 | 19,817,321 | 57,677,492 | 60,642,843 |
GROSS PROFIT | 2,806,148 | 2,221,102 | 6,874,340 | 5,791,063 |
OPERATING EXPENSES | 878,318 | 772,964 | 2,647,867 | 1,894,522 |
INCOME FROM OPERATIONS | 1,927,830 | 1,448,138 | 4,226,473 | 3,896,541 |
OTHER INCOME (EXPENSE) | ||||
Interest and other income | 5,626 | 12,014 | 31,197 | 94,284 |
Business interruption claims recovery | 0 | 0 | 0 | 500,000 |
Equity in net income of investments | 678,201 | 392,686 | 1,546,049 | 2,177,486 |
Interest expense | (1,262) | (1,954) | (3,785) | (6,089) |
Total other income | 682,565 | 402,746 | 1,573,461 | 2,765,681 |
NET INCOME | $ 2,610,395 | $ 1,850,884 | $ 5,799,934 | $ 6,662,222 |
BASIC AND DILUTED EARNINGS PER UNIT | $ 0.09 | $ 0.06 | $ 0.20 | $ 0.22 |
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 | $ 0.10 | $ 0.20 | $ 0.20 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
OPERATING ACTIVITIES | ||
Net income | $ 5,799,934 | $ 6,662,222 |
Changes to net income affecting cash and cash equivalents | ||
Depreciation and amortization | 2,700,166 | 2,440,041 |
Distributions in excess of earnings from investments | 2,682,701 | 7,127,600 |
Gain on involuntary conversion property and equipment | 0 | (825,709) |
(Increase) decrease in | ||
Receivables | (1,153,486) | (560,796) |
Inventory | 2,708,598 | 2,003,035 |
Prepaid expenses | 165,055 | 191,124 |
Derivative financial instruments | 606,548 | (587,161) |
Accounts payable | (5,463,377) | (4,494,851) |
Accrued and other liabilities | (52,884) | 6,193 |
NET CASH PROVIDED BY OPERATING ACTIVITIES | 7,993,255 | 11,961,698 |
INVESTING ACTIVITIES | ||
Insurance proceeds | 0 | 1,500,000 |
Purchase of property and equipment | (3,383,088) | (8,103,781) |
Purchase of investments | 0 | (15,000) |
NET CASH USED IN INVESTING ACTIVITIES | (3,383,088) | (6,618,781) |
FINANCING ACTIVITIES | ||
Increase in outstanding checks in excess of bank balance | 385,370 | 4,163,241 |
Principal payments on long-term notes payable | (55,475) | (13,708) |
Distributions paid to members | (5,924,000) | (6,027,512) |
NET CASH (USED FOR) FINANCING ACTIVITIES | (5,594,105) | (1,877,979) |
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS | (983,938) | 3,464,938 |
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | 8,329,166 | 6,104,383 |
CASH AND CASH EQUIVALENTS AT END OF PERIOD | 7,345,228 | 9,569,321 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION | ||
Cash paid during the period for interest | 3,783 | 6,790 |
Capital expenditures in accounts payable | $ 656,954 | $ 624,780 |
Nature of Operations
Nature of Operations | 9 Months Ended |
Sep. 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 | 9 Months Ended |
Sep. 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 nine months ended September 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 September 30, 2016 , the Company is committed to purchasing approximately 3.9 million bushels of corn on a forward contract basis with an average price of $3.43 per bushel. The total corn purchase contracts represent 20% 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 September 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 September 30, 2016 , the Company is committed to selling approximately 31,000 dry equivalent tons of distillers grains with an average price of $115 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 20% 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 September 30, 2016 , the Company is committed to selling approximately 1,970,000 pounds of distillers corn oil with an average price of $0.28 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 17% of the projected annual plant production. The Company does not have any firm-priced sales commitments for ethanol as of September 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 September 30, 2016 and December 31, 2015 were as follows: Balance Sheet Classification September 30, 2016 December 31, 2015* Forward contracts in gain position $ 9,036 $ 300 Futures contracts in gain position 897,138 189,244 Futures contracts in loss position (16,250 ) — Total forward and futures contracts 889,924 189,544 Cash held by broker 154,246 487,447 Current Assets $ 1,044,170 $ 676,991 Forward contracts in loss position (Current Liabilities) $ (1,581,298 ) $ (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 September 30, Classification 2016 2015 Net realized and unrealized gains (losses) related to purchase contracts: Futures contracts Cost of Revenues $ 1,128,300 $ 1,067,934 Forward contracts Cost of Revenues (598,874 ) (826,316 ) Statement of Operations Nine Months Ended September 30, Classification 2016 2015 Net realized and unrealized gains (losses) related to purchase contracts: Futures contracts Cost of Revenues $ 1,858,623 $ 1,133,731 Forward contracts Cost of Revenues (1,765,789 ) (524,216 ) 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 | 9 Months Ended |
Sep. 30, 2016 | |
Inventory [Abstract] | |
Inventory | INVENTORY Inventory consisted of the following as of September 30, 2016 and December 31, 2015 : September 30, 2016 December 31, 2015* Raw materials $ 2,429,643 $ 4,257,537 Finished goods 679,819 1,642,684 Work in process 420,879 570,510 Parts inventory 1,326,551 1,094,759 $ 4,856,892 $ 7,565,490 *Derived from audited financial statements. |
Investments (Notes)
Investments (Notes) | 9 Months Ended |
Sep. 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 June 30, 2016 unaudited interim results. The carrying amount of the Company’s investment was approximately $1,603,000 and $2,141,000 as of September 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 December 31, 2015 unaudited interim results. The carrying amount of the Company’s investment was approximately $867,000 as of September 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 September 30, 2016 unaudited interim results. The carrying amount of the Company’s investment was approximately $510,000 and $577,000 as of September 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 September 30, 2016 unaudited interim results. The carrying amount of the Company’s investment was approximately $9,526,000 and $11,597,000 as of September 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 September 30, 2016 unaudited interim results. The carrying amount of the Company’s investment was approximately $36,000 and $41,000 as of September 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 September 30, 2016 December 31, 2015 Current Assets $ 192,860,985 $ 160,690,612 Other Assets 156,593,153 163,293,989 Current Liabilities 167,523,960 117,783,636 Long-term Liabilities 38,238,186 37,674,031 Members' Equity 143,691,991 168,526,934 Three Months Ended Income Statement September 30, 2016 September 30, 2015 Revenue $ 61,531,795 $ 57,924,872 Gross Profit 13,923,350 10,058,230 Net Income 6,885,415 4,118,713 Nine Months Ended Income Statement September 30, 2016 September 30, 2015 Revenue $ 181,299,712 $ 192,106,193 Gross Profit 37,666,064 40,502,166 Net Income 16,159,237 22,989,997 The following table shows the condensed financial information of GH, which represents greater than 10% of the Company's net income as of September 30, 2016 : Balance Sheet September 30, 2016 December 31, 2015 Current Assets $ 17,878,623 $ 30,957,066 Other Assets 138,475,022 144,336,737 Current Liabilities 22,856,118 21,819,143 Long-term Liabilities 38,238,186 37,502,031 Members' Equity 95,259,341 115,972,629 Three Months Ended Income Statement September 30, 2016 September 30, 2015 Revenue $ 58,019,407 $ 54,012,760 Gross Profit 11,684,449 7,230,931 Net Income 5,936,832 2,847,066 Nine Months Ended Income Statement September 30, 2016 September 30, 2015 Revenue $ 169,833,142 $ 180,069,527 Gross Profit 30,394,537 31,794,870 Net Income 12,786,712 18,193,991 The Company recorded equity in net income of approximately $593,000 and $1,278,000 from GH for the three and nine months ended September 30, 2016 , respectively. The Company recorded equity in net income of approximately $285,000 and $1,819,000 from GH for the three and nine months ended September 30, 2015, respectively. The Company recorded equity in net income of approximately $85,000 and $268,000 from its other investments for the three and nine months ended September 30, 2016 , respectively. The Company recorded equity in net income of approximately $108,000 and $358,000 from its other investments for the three and nine months ended September 30, 2015, respectively. |
Short Term Note Payable
Short Term Note Payable | 9 Months Ended |
Sep. 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) for 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 3.50% at September 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 September 30, 2016 , Dakota Ethanol had $0 outstanding and $2,274,000 available to be drawn on the revolving promissory note under the borrowing base. The note was renewed in October 2016 with the same terms as the existing note. The renewal expires November 1, 2018. |
Long Term Notes Payable
Long Term Notes Payable | 9 Months Ended |
Sep. 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 3.75% at September 30, 2016 . The note contains a non-use fee of 0.5% on the unused portion of the note. On September 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) | 9 Months Ended |
Sep. 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 September 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 September 30, 2016 Assets: Derivative financial instruments, futures contracts $ 897,138 $ 897,138 $ — $ — forward contracts 9,036 — 9,036 — Liabilities: Derivative financial instruments, futures contracts $ (16,250 ) $ (16,250 ) $ — $ — forward contracts $ (1,581,298 ) $ — $ (1,581,298 ) $ — 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 nine months ended September 30, 2016 , the Company did not make any changes between Level 1 and Level 2 assets and liabilities. As of September 30, 2016 and December 31, 2015 , the Company did not have any Level 3 assets or liabilities. |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 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 September 30 Nine Months Ended September 30 2016 2015 2016 2015 Revenues ethanol $ 16,064,019 $ 17,023,820 $ 49,529,339 $ 50,642,929 Revenues distiller's dried grains 1,734,033 2,056,363 3,890,337 4,763,630 Revenues corn oil 761,191 745,177 2,058,908 2,263,342 Marketing fees ethanol 42,057 42,246 126,171 126,739 Marketing fees distiller's dried grains 10,200 11,954 23,366 28,740 Marketing fees corn oil 6,801 8,023 19,669 23,442 September 30, 2016 December 31, 2015* Amounts due included in accounts receivable $ 3,655,760 $ 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 September 30, 2016 and 2015 totaled approximately $1,616,000 and $730,000 , respectively. As of September 30, 2016 and December 31, 2015, the amount we owed to related parties was approximately $43,000 and $20,000 , respectively. |
Insurance Claims (Notes)
Insurance Claims (Notes) | 9 Months Ended |
Sep. 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) | 9 Months Ended |
Sep. 30, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | NOTE 10. SUBSEQUENT EVENTS During November 2016, the Company declared and paid a distribution to its members of $5,924,000 , or $0.20 per capital unit, to unit holders of record as of October 1, 2016. |
Accounting Policies
Accounting Policies | 9 Months Ended |
Sep. 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 September 30, 2016 , the Company is committed to purchasing approximately 3.9 million bushels of corn on a forward contract basis with an average price of $3.43 per bushel. The total corn purchase contracts represent 20% 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 September 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 September 30, 2016 , the Company is committed to selling approximately 31,000 dry equivalent tons of distillers grains with an average price of $115 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 20% 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 September 30, 2016 , the Company is committed to selling approximately 1,970,000 pounds of distillers corn oil with an average price of $0.28 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 17% of the projected annual plant production. The Company does not have any firm-priced sales commitments for ethanol as of September 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 September 30, 2016 and December 31, 2015 were as follows: Balance Sheet Classification September 30, 2016 December 31, 2015* Forward contracts in gain position $ 9,036 $ 300 Futures contracts in gain position 897,138 189,244 Futures contracts in loss position (16,250 ) — Total forward and futures contracts 889,924 189,544 Cash held by broker 154,246 487,447 Current Assets $ 1,044,170 $ 676,991 Forward contracts in loss position (Current Liabilities) $ (1,581,298 ) $ (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 September 30, Classification 2016 2015 Net realized and unrealized gains (losses) related to purchase contracts: Futures contracts Cost of Revenues $ 1,128,300 $ 1,067,934 Forward contracts Cost of Revenues (598,874 ) (826,316 ) Statement of Operations Nine Months Ended September 30, Classification 2016 2015 Net realized and unrealized gains (losses) related to purchase contracts: Futures contracts Cost of Revenues $ 1,858,623 $ 1,133,731 Forward contracts Cost of Revenues (1,765,789 ) (524,216 ) |
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 Accoun17
Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Summary of Significant Accounting Policies [Abstract] | |
Derivatives Not Designated as Hedging Instruments | Derivatives not designated as hedging instruments at September 30, 2016 and December 31, 2015 were as follows: Balance Sheet Classification September 30, 2016 December 31, 2015* Forward contracts in gain position $ 9,036 $ 300 Futures contracts in gain position 897,138 189,244 Futures contracts in loss position (16,250 ) — Total forward and futures contracts 889,924 189,544 Cash held by broker 154,246 487,447 Current Assets $ 1,044,170 $ 676,991 Forward contracts in loss position (Current Liabilities) $ (1,581,298 ) $ (607,571 ) *Derived from audited financial statements. |
Net realized and unrealized gains (losses) related to purchase contracts | Statement of Operations Three Months Ended September 30, Classification 2016 2015 Net realized and unrealized gains (losses) related to purchase contracts: Futures contracts Cost of Revenues $ 1,128,300 $ 1,067,934 Forward contracts Cost of Revenues (598,874 ) (826,316 ) Statement of Operations Nine Months Ended September 30, Classification 2016 2015 Net realized and unrealized gains (losses) related to purchase contracts: Futures contracts Cost of Revenues $ 1,858,623 $ 1,133,731 Forward contracts Cost of Revenues (1,765,789 ) (524,216 ) |
Inventory (Tables)
Inventory (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Inventory [Abstract] | |
Schedule of Inventory | Inventory consisted of the following as of September 30, 2016 and December 31, 2015 : September 30, 2016 December 31, 2015* Raw materials $ 2,429,643 $ 4,257,537 Finished goods 679,819 1,642,684 Work in process 420,879 570,510 Parts inventory 1,326,551 1,094,759 $ 4,856,892 $ 7,565,490 *Derived from audited financial statements. |
Investments Investments (Tables
Investments Investments (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Schedule of Equity Method Investments [Line Items] | |
Equity Method Investments | Balance Sheet September 30, 2016 December 31, 2015 Current Assets $ 192,860,985 $ 160,690,612 Other Assets 156,593,153 163,293,989 Current Liabilities 167,523,960 117,783,636 Long-term Liabilities 38,238,186 37,674,031 Members' Equity 143,691,991 168,526,934 Three Months Ended Income Statement September 30, 2016 September 30, 2015 Revenue $ 61,531,795 $ 57,924,872 Gross Profit 13,923,350 10,058,230 Net Income 6,885,415 4,118,713 Nine Months Ended Income Statement September 30, 2016 September 30, 2015 Revenue $ 181,299,712 $ 192,106,193 Gross Profit 37,666,064 40,502,166 Net Income 16,159,237 22,989,997 The following table shows the condensed financial information of GH, which represents greater than 10% of the Company's net income as of September 30, 2016 : Balance Sheet September 30, 2016 December 31, 2015 Current Assets $ 17,878,623 $ 30,957,066 Other Assets 138,475,022 144,336,737 Current Liabilities 22,856,118 21,819,143 Long-term Liabilities 38,238,186 37,502,031 Members' Equity 95,259,341 115,972,629 Three Months Ended Income Statement September 30, 2016 September 30, 2015 Revenue $ 58,019,407 $ 54,012,760 Gross Profit 11,684,449 7,230,931 Net Income 5,936,832 2,847,066 Nine Months Ended Income Statement September 30, 2016 September 30, 2015 Revenue $ 169,833,142 $ 180,069,527 Gross Profit 30,394,537 31,794,870 Net Income 12,786,712 18,193,991 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value, by Balance Sheet Grouping | Total Level 1 Level 2 Level 3 September 30, 2016 Assets: Derivative financial instruments, futures contracts $ 897,138 $ 897,138 $ — $ — forward contracts 9,036 — 9,036 — Liabilities: Derivative financial instruments, futures contracts $ (16,250 ) $ (16,250 ) $ — $ — forward contracts $ (1,581,298 ) $ — $ (1,581,298 ) $ — 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) | 9 Months Ended |
Sep. 30, 2016 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions | Three Months Ended September 30 Nine Months Ended September 30 2016 2015 2016 2015 Revenues ethanol $ 16,064,019 $ 17,023,820 $ 49,529,339 $ 50,642,929 Revenues distiller's dried grains 1,734,033 2,056,363 3,890,337 4,763,630 Revenues corn oil 761,191 745,177 2,058,908 2,263,342 Marketing fees ethanol 42,057 42,246 126,171 126,739 Marketing fees distiller's dried grains 10,200 11,954 23,366 28,740 Marketing fees corn oil 6,801 8,023 19,669 23,442 September 30, 2016 December 31, 2015* Amounts due included in accounts receivable $ 3,655,760 $ 939,705 |
Nature of Operations (Details)
Nature of Operations (Details) gal in Millions | 9 Months Ended |
Sep. 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 |
Summary of Significant Accoun23
Summary of Significant Accounting Policies Investments (Details) bu in Millions | 9 Months Ended |
Sep. 30, 2016buT$ / T$ / bu | |
Derivative [Line Items] | |
Equity Method Investments, Number of Entities | 5 |
Corn [Member] | |
Derivative [Line Items] | |
Product usage, percentage | 20.00% |
Derivative, Number of Instruments Held | bu | 3.9 |
Derivative, Nonmonetary Notional Amount, Average Price Per Unit | 3.43 |
Distillers Grain [Member] | |
Derivative [Line Items] | |
Product usage, percentage | 20.00% |
Derivative, Number of Instruments Held | T | 31,000 |
Derivative, Nonmonetary Notional Amount, Average Price Per Unit | $ / T | 115 |
Corn Oil [Member] | |
Derivative [Line Items] | |
Product usage, percentage | 17.00% |
Derivative, Number of Instruments Held | 1,970,000 |
Derivative, Nonmonetary Notional Amount, Average Price Per Unit | 0.28 |
Derivative Instruments - Balanc
Derivative Instruments - Balance Sheet (Details) - USD ($) | Sep. 30, 2016 | Dec. 31, 2015 |
Derivatives, Fair Value [Line Items] | ||
Derivative Instruments and Hedges, Liabilities | $ 1,581,298 | $ 607,571 |
Derivative Instruments and Hedges, Assets | 1,044,170 | 676,991 |
Current Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Cash held by broker | 154,246 | 487,447 |
Current Assets [Member] | Not Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets, Current | 889,924 | 189,544 |
Derivative Instruments and Hedges, Assets | 1,044,170 | 676,991 |
Other Current Liabilities [Member] | Not Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Instruments and Hedges, Liabilities | 1,581,298 | 607,571 |
Forward Contracts [Member] | Current Assets [Member] | Not Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets, Current | 9,036 | 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 | 897,138 | 189,244 |
Futures Contracts held in loss position [Member] | Future [Member] | Current Assets [Member] | Not Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Current | $ 0 | |
Futures Contracts held in loss position [Member] | Future [Member] | Other Current Liabilities [Member] | Not Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Current | $ 16,250 |
Derivative Instruments - Income
Derivative Instruments - Income Statement (Details) - Not Designated as Hedging Instrument [Member] - Cost of Sales [Member] - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Forward Contracts [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, Gain (Loss) on Derivative, Net | $ (598,874) | $ (826,316) | $ (1,765,789) | $ (524,216) |
Future [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, Gain (Loss) on Derivative, Net | $ 1,128,300 | $ 1,067,934 | $ 1,858,623 | $ 1,133,731 |
Inventory (Details)
Inventory (Details) - USD ($) | Sep. 30, 2016 | Dec. 31, 2015 |
Inventory [Abstract] | ||
Raw Materials | $ 2,429,643 | $ 4,257,537 |
Finished Goods | 679,819 | 1,642,684 |
Work in Process | 420,879 | 570,510 |
Parts Inventory | 1,326,551 | 1,094,759 |
Inventory | $ 4,856,892 | $ 7,565,490 |
Investments (Details)
Investments (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Schedule of Equity Method Investments [Line Items] | |||||
Investments | $ 12,542,291 | $ 12,542,291 | $ 15,224,992 | ||
Equity in net income of investments | 678,201 | $ 392,686 | 1,546,049 | $ 2,177,486 | |
Equity Method Investment, Summarized Financial Information, Current Assets | 192,860,985 | 192,860,985 | 160,690,612 | ||
Equity Method Investment, Summarized Financial Information, Noncurrent Assets | 156,593,153 | 156,593,153 | 163,293,989 | ||
Equity Method Investment, Summarized Financial Information, Current Liabilities | 167,523,960 | 167,523,960 | 117,783,636 | ||
Equity Method Investment, Summarized Financial Information, Noncurrent Liabilities | 38,238,186 | 38,238,186 | 37,674,031 | ||
Equity Method Investment Summarized Financial Information, Equity | 143,691,991 | 143,691,991 | 168,526,934 | ||
Equity Method Investment, Summarized Financial Information, Revenue | 61,531,795 | 57,924,872 | 181,299,712 | 192,106,193 | |
Equity Method Investment, Summarized Financial Information, Gross Profit (Loss) | 13,923,350 | 10,058,230 | 37,666,064 | 40,502,166 | |
Equity Method Investment, Summarized Financial Information, Net Income (Loss) | $ 6,885,415 | 4,118,713 | $ 16,159,237 | 22,989,997 | |
Renewable Products Marketing Group, LLC (RPMG) [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Equity Method Investment, Ownership Percentage | 7.00% | 7.00% | |||
Investments | $ 1,603,000 | $ 1,603,000 | 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 | $ 510,000 | $ 510,000 | 577,000 | ||
Guardian Hankinson, LLC [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Equity Method Investment, Ownership Percentage | 10.00% | 10.00% | |||
Investments | $ 9,526,000 | $ 9,526,000 | 11,597,000 | ||
Equity in net income of investments | 593,000 | 285,000 | 1,278,000 | 1,819,000 | |
Equity Method Investment, Summarized Financial Information, Current Assets | 17,878,623 | 17,878,623 | 30,957,066 | ||
Equity Method Investment, Summarized Financial Information, Noncurrent Assets | 138,475,022 | 138,475,022 | 144,336,737 | ||
Equity Method Investment, Summarized Financial Information, Current Liabilities | 22,856,118 | 22,856,118 | 21,819,143 | ||
Equity Method Investment, Summarized Financial Information, Noncurrent Liabilities | 38,238,186 | 38,238,186 | 37,502,031 | ||
Equity Method Investment Summarized Financial Information, Equity | 95,259,341 | 95,259,341 | 115,972,629 | ||
Equity Method Investment, Summarized Financial Information, Revenue | 58,019,407 | 54,012,760 | 169,833,142 | 180,069,527 | |
Equity Method Investment, Summarized Financial Information, Gross Profit (Loss) | 11,684,449 | 7,230,931 | 30,394,537 | 31,794,870 | |
Equity Method Investment, Summarized Financial Information, Net Income (Loss) | 5,936,832 | 2,847,066 | 12,786,712 | 18,193,991 | |
GEM, LT, PGVP, RPMG Combined [Domain] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Equity in net income of investments | $ 85,000 | $ 108,000 | $ 268,000 | $ 358,000 | |
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] | 9 Months Ended |
Sep. 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 | 3.50% |
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 | $ 2,274,000 |
Long Term Note Payable (Details
Long Term Note Payable (Details) - Farm Credit Services of America [Member] - Revolving Credit Facility [Member] | 9 Months Ended |
Sep. 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 | 3.75% |
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 ($) | Sep. 30, 2016 | Dec. 31, 2015 |
Future [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative Asset | $ 897,138 | $ 189,244 |
Derivative Liability | 16,250 | |
Future [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative Asset | 897,138 | 189,244 |
Derivative Liability | 16,250 | |
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 | |
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 | |
Forward Contracts [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative Asset | 9,036 | 300 |
Derivative Liability | 1,581,298 | 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 | 9,036 | 300 |
Derivative Liability | 1,581,298 | 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 | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Related Party Transaction [Line Items] | |||||
Related Party Transaction, Purchases from Related Party | $ 1,616,000 | $ 730,000 | |||
Due from Related Parties, Current | 3,655,760 | $ 3,655,760 | $ 939,705 | ||
Due to Related Parties | $ 43,000 | $ 43,000 | $ 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 | $ 16,064,019 | 17,023,820 | $ 49,529,339 | $ 50,642,929 | |
Marketing Expenses from Transactions with Related Party | 42,057 | 42,246 | 126,171 | 126,739 | |
Distillers Grain [Member] | Renewable Products Marketing Group, LLC (RPMG) [Member] | |||||
Related Party Transaction [Line Items] | |||||
Revenue from Related Parties | 1,734,033 | 2,056,363 | 3,890,337 | 4,763,630 | |
Marketing Expenses from Transactions with Related Party | 10,200 | 11,954 | 23,366 | 28,740 | |
Corn Oil [Member] | Renewable Products Marketing Group, LLC (RPMG) [Member] | |||||
Related Party Transaction [Line Items] | |||||
Revenue from Related Parties | 761,191 | 745,177 | 2,058,908 | 2,263,342 | |
Marketing Expenses from Transactions with Related Party | $ 6,801 | $ 8,023 | $ 19,669 | $ 23,442 |
Insurance Claims (Details)
Insurance Claims (Details) | 9 Months Ended |
Sep. 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) - Subsequent Event [Member] | 3 Months Ended |
Dec. 31, 2016USD ($)$ / shares | |
Subsequent Event [Line Items] | |
Distribution Made to Limited Liability Company (LLC) Member, Distributions Declared, Per Unit | $ / shares | $ 0.20 |
Distribution Made to Limited Liability Company (LLC) Member, Cash Distributions Declared | $ | $ 5,924,000 |