Cover Page Document
Cover Page Document - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Mar. 07, 2024 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-K | |
Document Period End Date | Dec. 31, 2023 | |
Entity File Number | 000-50254 | |
Entity Registrant Name | LAKE AREA CORN PROCESSORS, LLC | |
Entity Incorporation, State or Country Code | SD | |
Entity Tax Identification Number | 46-0460790 | |
Entity Address, Address Line One | 46269 SD Highway 34 | |
Entity Address, Address Line Two | P.O. Box 100 | |
Entity Address, City or Town | Wentworth | |
Entity Address, State or Province | SD | |
Entity Address, Postal Zip Code | 57075 | |
City Area Code | 605 | |
Local Phone Number | 483-2676 | |
Entity Well-known Seasoned Issuer | No | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Public Float | $ 14,137,375 | |
Entity Common Stock, Shares Outstanding | 29,620,000 | |
Entity Central Index Key | 0001156174 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | FY | |
Document Annual Report | true | |
Document Transition Report | false | |
Amendment Flag | false | |
Auditor Name | RSM US LLP | |
Auditor Location | Sioux Falls, South Dakota | |
Auditor Firm ID | 49 | |
Document Financial Statement Error Correction [Flag] | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
CURRENT ASSETS | ||
Cash and cash equivalents | $ 36,773,989 | $ 27,004,205 |
Accounts receivable | 6,142,700 | 2,933,904 |
Inventory | 14,673,710 | 25,795,711 |
Derivative financial instruments | 1,155,157 | 2,856,439 |
Prepaid and other expenses | 2,741,191 | 864,810 |
Total current assets | 61,486,747 | 59,455,069 |
PROPERTY AND EQUIPMENT | ||
Land | 874,473 | 874,473 |
Land improvements | 8,763,023 | 8,763,023 |
Buildings | 9,316,576 | 9,316,576 |
Equipment | 108,135,828 | 108,125,289 |
Construction in progress | 890,881 | 13,366 |
Gross Property and Equipment | 127,980,781 | 127,092,727 |
Less accumulated depreciation | (69,149,798) | (63,611,356) |
Net property and equipment | 58,830,983 | 63,481,371 |
OTHER ASSETS | ||
Goodwill | 10,395,766 | 10,395,766 |
Investments | 55,233,080 | 17,691,011 |
Other | 7,437,578 | 5,383,310 |
Investments and Other Noncurrent Assets | 73,066,424 | 33,470,087 |
Assets | 193,384,154 | 156,406,527 |
CURRENT LIABILITIES | ||
Outstanding checks in excess of bank balance | 2,670,403 | 4,200,281 |
Accounts payable | 33,370,759 | 39,105,845 |
Accrued liabilities | 833,973 | 719,113 |
Derivative financial instruments | 1,114,590 | 435,053 |
Current portion of notes payable | 0 | 1,000,000 |
Total current liabilities | 37,989,725 | 45,460,292 |
LONG-TERM LIABILITIES | ||
Notes payable | 20,001,000 | 2,998,229 |
Total long-term liabilities | 20,001,000 | 2,998,229 |
COMMITMENTS AND CONTINGENCIES (Note 10) | ||
Stockholders' Equity Attributable to Parent | 135,393,429 | 107,948,006 |
Liabilities and Equity | $ 193,384,154 | $ 156,406,527 |
Distribution Made to Limited Liability Company (LLC) Member, Distributions Declared, Per Unit | $ 0.50 | $ 1.11 |
Consolidated Balance Sheets Par
Consolidated Balance Sheets Parenthetical | Dec. 31, 2023 shares |
Consolidated Balance Sheets Parenthetical [Abstract] | |
Common Unit, Issued | 29,620,000 |
Common Unit, Outstanding | 29,620,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Consolidated Statements of Operations [Abstract] | |||
REVENUES | $ 280,440,962 | $ 282,564,697 | $ 258,989,603 |
COSTS OF REVENUES | 244,726,671 | 255,710,981 | 207,275,615 |
GROSS PROFIT | 35,714,291 | 26,853,716 | 51,713,988 |
OPERATING EXPENSES | 5,832,995 | 4,954,621 | 5,430,294 |
INCOME FROM OPERATIONS | 29,881,296 | 21,899,095 | 46,283,694 |
OTHER INCOME (EXPENSE) | |||
Interest and other income | 3,606,734 | 1,789,976 | 1,360,438 |
Equity in net income of investments | 9,105,895 | 3,703,767 | 10,169,606 |
Interest expense | (212,532) | (90,881) | (727,452) |
Total other income (expense) | 12,500,097 | 5,402,862 | 10,802,592 |
NET INCOME | 42,381,393 | 27,301,957 | 57,086,286 |
Net Income (Loss) Available to Common Stockholders, Diluted | 1.43 | 0.92 | 1.93 |
Net Income (Loss) Available to Common Stockholders, Basic | $ 1.43 | $ 0.92 | $ 1.93 |
Weighted Average Number of Shares Outstanding, Diluted | 29,620,000 | 29,620,000 | 29,620,000 |
Weighted Average Number of Shares Outstanding, Basic | 29,620,000 | 29,620,000 | 29,620,000 |
Distribution Made to Limited Liability Company (LLC) Member, Distributions Declared, Per Unit | $ 0.50 | $ 1.11 | $ 0.30 |
Consolidated Statement of Chang
Consolidated Statement of Changes in Members' Equity | USD ($) |
Beginning balance at Dec. 31, 2020 | $ 65,268,579 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |
Net Income | 57,086,286 |
Distributions | (8,886,000) |
Ending balance at Dec. 31, 2021 | 113,468,865 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |
Net Income | 27,301,957 |
Distributions | (32,822,816) |
Ending balance at Dec. 31, 2022 | 107,948,006 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |
Net Income | 42,381,393 |
Distributions | (14,935,970) |
Ending balance at Dec. 31, 2023 | $ 135,393,429 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
OPERATING ACTIVITIES | |||
Net income | $ 42,381,393 | $ 27,301,957 | $ 57,086,286 |
Adjustments to reconcile net income to net cash provided by operating activities | |||
Depreciation and amortization | 5,859,683 | 5,060,975 | 5,396,440 |
Distributions in excess of earnings (earnings in excess of distributions) from investments | 6,657,556 | 3,301,233 | (3,544,606) |
Gain (Loss) on Extinguishment of Debt | 0 | 0 | (768,400) |
Gain (Loss) on Extinguishment of Debt, EIDL | 0 | 0 | 10,000 |
Government grant income | 0 | 75,558 | 0 |
(Increase) decrease in | |||
Accounts receivable | (3,208,797) | (1,024,414) | 309,324 |
Inventory | 11,122,000 | (9,385,274) | (6,641,522) |
Prepaid expenses | (98,380) | (131,621) | (55,718) |
Derivative financial instruments | 2,380,819 | (1,025,065) | 433,509 |
Accounts payable | (5,130,669) | 12,646,359 | 7,328,901 |
Accrued liabilities | 114,861 | (195,881) | 186,450 |
NET CASH PROVIDED BY OPERATING ACTIVITIES | 60,078,466 | 36,623,827 | 59,720,664 |
Natural gas transportation payment | (3,556,000) | (5,334,000) | 0 |
INVESTING ACTIVITIES | |||
Purchase of property and equipment | (1,500,166) | (9,943,710) | (2,061,972) |
Purchase of investments | (44,199,624) | (487,403) | (323,869) |
NET CASH USED IN INVESTING ACTIVITIES | (49,255,790) | (15,765,113) | (2,385,841) |
FINANCING ACTIVITIES | |||
Increase (decrease) in outstanding checks in excess of bank balance | (1,529,879) | 1,971,997 | 1,908,676 |
Borrowings on notes payable | 61,235,318 | 13,498,000 | 21,000,000 |
Payments on notes payable | 45,232,547 | 14,497,000 | 52,000,000 |
Financing costs paid | (34,771) | 0 | 0 |
Distributions paid to members | (14,935,970) | (32,822,816) | (8,886,000) |
NET CASH USED IN FINANCING ACTIVITIES | (497,849) | (31,849,819) | (37,977,324) |
NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH | 10,324,827 | (10,991,105) | 19,357,499 |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH AT BEGINNING OF PERIOD | 27,004,205 | 37,995,310 | 18,637,811 |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH AT END OF PERIOD | 37,329,032 | 27,004,205 | 37,995,310 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION | |||
Cash paid during the period for interest, net of capitalized interest of $18,307; $158,636; and $6,339 in 2023, 2022 and 2021, respectively | 221,752 | 83,173 | 943,736 |
Capital expenditures in accounts payable | $ 0 | $ 604,417 | $ 0 |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows Parenthetical - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Statements of Cash Flows [Abstract] | |||
Capitalized interest | $ 158,636 | $ 6,339 | $ 148 |
Nature of Operations
Nature of Operations | 12 Months Ended |
Dec. 31, 2023 | |
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 100 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 related industries. See note 5 for further details. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2023 | |
Summary of Significant Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 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 ASC Topic 606, Revenue from Contracts with Customers requires the Company to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance requires the Company to apply the following steps: (1) identify the contract with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations in the contract; and (5) recognize revenue when, or as, the Company satisfies a performance obligation. The Company generally recognizes revenue at a point in time. The Company's contracts with customers have one performance obligation and a contract duration of one year or less. The following is a description of principal activities from which we generate revenue. Revenues from contracts with customers are recognized when control of the promised goods or services are transferred to our customers, in an amount that reflects the consideration that we expect to receive in exchange for those goods or services. Generally, ethanol and related products are shipped FOB shipping point and control of the goods transfers to customers when the goods are loaded into trucks or when rail cars are shipped. Consideration is based on predetermined contractual prices or on current market prices. • Sales of Ethanol • Sales of Distillers Grains • Sales of Distillers Corn Oil Disaggregation of Revenue: All revenue recognized in the statement of operations is considered to be revenue from contracts with customers. The following table depicts the disaggregation of revenue according to product line: 2023 2022 2021 Revenues ethanol $ 212,267,127 $ 209,428,369 $ 203,540,577 Revenues distillers grains 50,262,553 53,136,441 41,168,903 Revenues distillers corn oil 17,911,282 19,999,887 14,280,123 $ 280,440,962 $ 282,564,697 $ 258,989,603 Contract Assets and Contract Liabilities: The Company receives payments from customers based upon contractual billing schedules; accounts receivable are recorded when the right to consideration becomes unconditional. Contract liabilities include payments received in advance of performance under the contract, and are realized with the associated revenue recognized under the contract. The Company has 0 significant contract assets or contract liabilities from contracts with customers at December 31, 2023 and 2022. Shipping Costs 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. When the Company performs shipping and handling activities after the transfer of control to the customers (e.g., when control transfers prior to delivery), they are considered as fulfillment activities, and accordingly, the costs are accrued for when the related revenue is recognized. Cost of Revenues The primary raw materials we use to produce ethanol, distillers grains and corn oil are corn and natural gas. Electricity, raw materials expense (chemicals and denaturant), direct labor costs, and shipping costs on 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, net realizable value is based on estimated selling prices in the ordinary course of business less reasonably predictable costs of completion, disposal and transportation. Cash, Cash Equivalents, and Restricted Cash Cash and cash equivalents consist of demand accounts and other accounts with original maturities of three months or less that provide withdrawal privileges. Restricted cash is subject to a contractual restriction and not readily available in accordance with the terms of the West Leg agreement. December 31, 2023 December 31, 2022 Cash and Cash Equivalents $ 36,773,989 $ 27,004,205 Restricted Cash (included in other assets) 555,043 — Total Cash, Cash Equivalents, and Restricted Cash $ 37,329,032 $ 27,004,205 Receivables and Credit Policies Accounts receivable are uncollateralized customer obligations due under normal trade terms requiring payment within fifteen days from the invoice date. Unpaid accounts receivable with invoice dates over thirty days old bear interest at 1.5% per month. Accounts receivable are stated at the amount billed to the customer. Payments of accounts receivable are allocated to the specific invoices identified on the customer's remittance advice or, if unspecified, are applied to the earliest unpaid invoices. The carrying amount of trade receivables is reduced by a valuation allowance that reflects management's best estimate of the amounts that will not be collected. Management regularly reviews trade receivable balances and based on an assessment of current creditworthiness, estimates the portion, if any, of the balance that will not be collected. The valuation allowance was determined to be immaterial as of December 31, 2023 and 2022. Investment in commodities contracts, derivative instruments and hedging activities The Company is exposed to certain risks related to its ongoing business operations including price risks on anticipated purchases of corn, natural gas, the sale of ethanol, distillers grains and distillers corn oil. The Company manages these risks by using forward, future and options derivative instruments. 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, unfavorable market conditions result from rising corn prices. 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 are 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. Additionally, the crisis in Ukraine may effect the price of corn, and by extension, our business. Certain contracts that 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 December 31, 2023, the Company is committed to purchasing approximately 4.1 million bushels of corn on a forward contract basis with an average price of $4.75 per bushel. The total corn purchase contracts represent 12% of the projected annual plant corn usage. The Company has 580,000 bushels of corn inventory delivered under delayed-pricing contracts. The contracts have various pricing deadlines through August 25, 2024. The Company is subject to risk of changes in the corn market until they are priced. 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. Under these arrangements, the Company assumes the risk of a price decrease in the market price of natural gas between the time the price is fixed and the time the natural gas is delivered. At December 31, 2023, the Company is committed to purchasing approximately 1,495,000 MMBtu's of natural gas with an average price of $3.50 per MMBtu. The Company accounts for these transactions as normal purchases, and accordingly, does not mark these transactions to market. The natural gas purchases represent approximately 71% of the projected annual plant requirements. 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. Under these arrangements, the Company assumes the risk of a price increase in the market price of distillers grain between the time the price is fixed and the time the distillers grains are delivered. At December 31, 2023, the Company is committed to selling approximately 46,000 dry equivalent tons of distillers grains with an average price of $189 per ton. The Company accounts for these transactions as normal sales, and accordingly, does not mark these transactions to market. The distillers grains sales represent approximately 21% 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. 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 December 31, 2023, the Company is committed to selling approximately 1,709,000 pounds of distillers corn oil with an average price of $0.48 per pound. The Company accounts for these transactions as normal sales, and accordingly, does not mark these transactions to market. The distillers corn oil sales represent approximately 5% of the projected annual plant production. The Company does not have any firm-priced sales commitments for ethanol as of December 31, 2023. 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. 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, or a normal purchase, normal sale exemption is elected. Although the contracts are considered economic hedges of specified risks, they are not designated and accounted for as hedging instruments. As part of our trading activity, the Company uses futures and option contracts offered through regulated commodity exchanges to reduce risk of loss in the market value of inventories and purchase commitments. Derivatives not designated as hedging instruments at December 31, 2023 and December 31, 2022 were as follows: Balance Sheet Classification December 31, 2023 December 31, 2022 Corn forward contracts in gain position $ 16,878 $ 922,181 Futures and options contracts in gain position 289,681 252,450 Futures and options contracts in loss position (200) (395,300) Total forward, futures and options contracts 306,359 779,331 Cash held by broker 848,798 2,077,108 Current Assets $ 1,155,157 $ 2,856,439 Corn forward contracts in loss position Current Liabilities $ (1,114,590) $ (435,053) Futures and options 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. Gains and losses related to derivative contracts related to corn and natural gas are included as a component of costs of revenues. Statement of Operations Years Ended December 31, Classification 2023 2022 2021 Net realized and unrealized gains (losses) related to purchase contracts: Futures and options contracts Cost of Revenues $ 6,354,770 $ (7,009,445) $ (10,137,035) Forward contracts Cost of Revenues (13,212,036) 2,019,133 6,222,026 Investments The Company has investment interests in five companies in related industries. Four of these interests are at ownership shares less than 20%. One of the investments exceeds 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 operations 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 based on the most recent reliable data. Use of Estimates The preparation of financial statements 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 goodwill and fixed asset impairment evaluation. Concentrations of Credit Risk The Company's cash balances are maintained in bank depositories and regularly exceed federally insured limits. The Company has not experienced any losses in connection with these balances. Property and Equipment Property and equipment is stated at cost. Significant additions and betterments are capitalized, while expenditures for maintenance, repairs and minor renewals are charged to operations when incurred. Depreciation on assets placed in service is computed using the straight-line method over estimated useful lives as follows: • Land improvements 20-40 years • Equipment 5-20 years • Buildings 15-40 years Equipment relates to two general categories: mechanical equipment and administrative and maintenance equipment. Mechanical equipment generally relates to equipment for handling inventories and the production of ethanol and related products, with useful lives of 15 to 20 years, including boilers, cooling towers, grain bins, centrifuges, conveyors, fermentation tanks, pumps and drying equipment. Administrative and maintenance equipment is equipment with useful lives of 5 to 15 years, including vehicles, computer systems, security equipment, testing devices and shop equipment. The Company reviews its property and equipment for impairment whenever events indicate that the carrying amount of an asset group may not be recoverable. An impairment loss is recorded when the sum of the undiscounted future cash flows is less than the carrying amount of the asset group. An impairment loss is measured as the amount by which the carrying amount of the asset group exceeds its fair value. No indicators of impairment were identified at December 31, 2023. Goodwill Annually, as well as when an event triggering impairment may have occurred, the Company performs an impairment test on goodwill, which compares the fair value of the reporting unit with its carrying amount. An impairment charge is recognized, if necessary, for the amount by which the carrying value exceeds the fair value up to the amount of the goodwill attributed to the reporting unit. The Company performs the annual analysis on December 31 of each fiscal year. The Company determined that there was no impairment of goodwill at December 31, 2023 and 2022. Earnings Per Unit For purposes of calculating basic earnings per unit, units issued are considered outstanding on the effective date of issuance. Diluted earnings per unit are calculated by including dilutive potential equity units in the denominator. There were no dilutive equity units for the years ending December 31, 2023, 2022, and 2021. Income Taxes The Company is taxed as a limited liability company under the Internal Revenue Code. The income of the Company flows through to the members to be taxed at the member level rather than the corporate level. Accordingly, the Company has no tax liability. Management has evaluated the Company's tax positions under the Financial Accounting Standards Board issued guidance on accounting for uncertainty in income taxes and concluded that the Company had taken no uncertain tax positions that require adjustment to the financial statements to comply with the provisions of this guidance. Generally, the Company is no longer subject to income tax examinations by the U.S. federal, state or local authorities beyond three years for jurisdictions in which they file. Environmental Liabilities The Company's operations are subject to environmental laws and regulations adopted by various governmental authorities in the jurisdictions in which it operates. These laws require the Company to investigate and remediate the effects of the release or disposal of materials at its locations. Accordingly, the Company has adopted policies, practices and procedures in the areas of pollution control, occupational health and the production, handling, storage and use of hazardous materials to prevent material environmental or other damage, and to limit the financial liability which could result from such events. Environmental liabilities are recorded when the Company's liability is probable and the costs can be reasonably estimated. Reporting Segment Operating segments are defined as components of an enterprise for which separate financial information is available that is evaluated regularly by the chief operating decision maker or decision making group in deciding how to allocate resources and in assessing performance. The Company has determined that it has six operating segments that give rise to two reportable segments. See "Note 3 - Segments" in our Notes to Consolidated Financial Statements included elsewhere in this report for financial information about our segment reporting. Recently Issued Accounting Pronouncements There are currently no recently issued accounting pronouncements that the Company determined to be factually relevant to the understanding of the financial statements. Risks and Uncertainties The Company has certain risks and uncertainties that it will experience during volatile market conditions, which can have a severe impact on operations. The Company's revenues are derived from the sale and distribution of ethanol and distiller grains to customers primarily located in the United States. Corn for the production process is supplied to the plant primarily from local agricultural producers and from purchases on the open market. For the twelve months ended December 31, 2023, ethanol sales averaged approximately 76% of total revenues, while approximately 18% of revenues were generated from the sale of distillers grains and 6% of revenues were generated from the sale of corn oil. For the twelve months ended December 31, 2023, corn costs averaged approximately 81% of cost of goods sold. The Company's operating and financial performance is largely driven by the prices at which it sells ethanol and the net expense of corn. The price of ethanol is influenced by factors such as supply and demand, weather, unleaded gasoline and the petroleum markets, government programs, global political or economic issues, including but not limited to, the war in Ukraine including sanctions associated therewith, shortages, export prices, crude oil prices, currency valuations and government policies in the United States and around the world, over which we have no control. Excess ethanol supply in the market, in particular, puts downward pressure on the price of ethanol. The Company's largest cost of production is corn. The cost of corn is generally impacted by factors such as supply and demand, weather, and government programs, global political or economic issues, including but not limited to the war in Ukraine including sanctions associated therewith, or global damaging growing conditions, such as plant disease or adverse weather, including drought, increased fertilizer costs as well as global conflicts. The Company's risk management program is used to protect against the price volatility of these commodities. |
Inventory
Inventory | 12 Months Ended |
Dec. 31, 2023 | |
Inventory Disclosure [Abstract] | |
Inventory | INVENTORY Inventory consisted of the following as of December 31, 2023 and 2022: December 31, 2023 December 31, 2022 Raw materials $ 8,558,268 $ 12,397,256 Finished goods 2,853,609 10,050,394 Work in process 1,337,989 1,353,715 Parts inventory 1,923,844 1,994,346 $ 14,673,710 $ 25,795,711 |
Investments
Investments | 12 Months Ended |
Dec. 31, 2023 | |
Investments [Abstract] | |
Investment | INVESTMENTS Dakota Ethanol has a 5% 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 September 30, 2023, 2022 and 2021 audited results. The carrying amount of the Company's investment was approximately $2,317,000 and $2,286,000 as of December 31, 2023 and 2022, respectively. Dakota Ethanol has a 10% investment interest in Lawrenceville Tanks, LLC (LT), a partnership to construct and operate an ethanol storage terminal in Georgia. The net income which is reported in the Company's income statement for LT is based on LT's December 31, 2023, 2022 and 2021 unaudited results. The carrying amount of the Company's investment was approximately $209,000 and $216,000 as of December 31, 2023 and 2022, respectively. Lake Area Corn Processors had a 10% investment interest in Guardian Hankinson, LLC (GH), a partnership to operate an ethanol plant in North Dakota. On September 29, 2023 the Company purchased additional units increasing our ownership percentage of GH to 27%. The net income which is reported in the Company's income statement for GH is based on GH's December 31, 2023, 2022 and 2021 audited results. The carrying amount of the Company's investment was approximately $37,424,000 and $1,870,000 as of December 31, 2023 and 2022, respectively. The carrying amount of the investment exceeds the underlying equity in net assets by approximately $38,854,000. The excess is comprised of basis adjustment. The Company determined the excess would be amortized over 10 years. The amortization is recorded in equity in net income of investments. Lake Area Corn Processors has a 20% 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 December 31, 2023, 2022 and 2021 unaudited interim results. The carrying amount of the Company's investment was approximately $93,000 and $92,000 as of December 31, 2023 and 2022, respectively. Lake Area Corn Processors has an 12% investment interest in Ring-neck Energy & Feed, LLC (REF), a partnership to operate an ethanol plant in South Dakota. The net income which is reported in the Company's income statement for REF is based on REF's December 31, 2023, 2022, and 2021 audited results. The carrying amount of the Company's investment was approximately $14,725,000 and $13,227,000 as of December 31, 2023 and 2022, respectively. The carrying amount of the investment exceeds the underlying equity in net assets by approximately $884,000. The excess is comprised of a basis adjustment of approximately $363,000 and capitalized interest of $521,000. The excess is amortized over 20 years. The amortization is recorded in equity in net income of investments. Condensed, combined unaudited financial information of the Company's investments in RPMG, LT, GH, GEM and REF are as follows: 12/31/2023 12/31/2022 12/31/2021 Current assets $ 375,173,028 $ 376,111,612 $ 370,470,221 Other assets 152,477,137 160,018,056 179,230,853 Current liabilities 316,288,459 334,797,023 308,504,144 Long-term liabilities 22,658,176 36,462,751 44,248,272 Members' equity 188,703,530 164,869,892 196,948,658 Revenue 612,919,042 739,631,019 667,121,991 Gross Profit 76,660,052 59,547,216 112,911,725 Net Income 78,156,612 37,233,984 102,549,188 The following table shows the condensed financial information of Guardian Energy Hankinson; an investment which represents greater than 10% of the Company's assets and income as of December 31,2023. 12/31/2023 12/31/2022 12/31/2021 Current assets $ 34,890,139 $ 35,429,047 $ 43,793,006 Other assets 32,056,021 41,806,802 54,451,233 Current liabilities 52,166,375 49,708,032 34,990,527 Long-term liabilities 8,957,906 8,829,302 6,115,092 Members' equity 5,821,879 18,698,514 57,138,620 Revenue 437,055,386 468,904,462 442,502,900 Gross Profit 54,376,669 20,899,414 68,569,989 Net Income 49,123,365 22,559,896 71,815,190 The following table shows the condensed financial information of Ring-neck Energy & Feed; the investment in which represents greater than 10% of the Company's assets as of December 31, 2022. 12/31/2023 12/31/2022 12/31/2021 Current assets $ 42,843,145 $ 46,040,175 $ 44,893,050 Other assets 118,819,732 116,200,396 122,727,914 Current liabilities 27,230,565 30,950,092 23,595,688 Long-term liabilities 13,700,270 27,633,449 38,133,180 Member's equity 120,732,042 103,657,030 105,892,096 Revenue 161,062,008 253,181,487 208,356,815 Gross Profit 10,867,832 26,853,394 34,061,712 Net Income 21,541,939 9,276,276 25,195,703 The Company recorded equity in net income of approximately $8,640,000, $3,704,000 and $10,170,000 from our investments for the years ended December 31, 2023, 2022 and 2021 respectively. The Company received distributions of approximately $15,763,000, $7,005,000 and $6,625,000 for our investments for the years ended December 31, 2023, 2022 and 2021 respectively. The Company has undistributed net earnings in investees of approximately $5,178,000 and $3,648,000 as of December 31, 2023 and 2022, respectively. |
Revolving Operating Note
Revolving Operating Note | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Revolving Operating Note | REVOLVING OPERATING NOTE Dakota Ethanol has a revolving promissory note with Farm Credit Services of America (FCSA) in the amount up to $20,000,000. There is a non-use fee of 0.25% per annum on the unused portion of the note. The note is collateralized by substantially all assets of the Company. The note expires on November 1, 2025. Interest on the outstanding principal balance will accrue at 300 basis points above the Secured Overnight Financing 30-day Average Rate ("SOFR 30"). The interest rate is not subject to a floor. The rate was 8.34% at December 31, 2023. On December 31, 2023, Dakota Ethanol had $0 outstanding and $20,000,000 available to be drawn on the revolving promissory note. |
Long-Term Notes Payable
Long-Term Notes Payable | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Long-Term Notes Payable | LONG-TERM NOTES PAYABLE Dakota Ethanol had a term note from FCSA in the amount of $8,000,000. Dakota Ethanol made monthly interest payments and annual principal payments of $1,000,000. The note matured on August 1, 2025. Interest on the outstanding principal balance accrued at 325 basis points above the SOFR 30. The interest rate was not subject to a floor. The balance of the term note was paid off in its entirety in July 2023. Dakota Ethanol has a reducing revolving promissory note from FCSA in the amount up to $60,000,000 or the amount available in accordance with the borrowing availability under the credit agreement. The amount Dakota Ethanol can borrow on the note decreases by $2,500,000 semi-annually starting on January 1, 2024 until the maximum balance reaches $40,000,000 on July 1, 2027. The note matures on January 1, 2030. Interest on the outstanding principal balance will accrue at 325 basis points above the SOFR 30. The interest rate is not subject to a floor. The rate was 8.59% at December 31, 2023. The note contains a non-use fee of 0.50% on the unused portion of the note. On December 31, 2023, Dakota Ethanol had $20,001,000 outstanding and $39,999,000 available to be drawn on the note. As part of the notes, Dakota Ethanol is subject to certain restrictive covenants establishing financial reporting requirements, distribution and capital expenditure limits, minimum debt service coverage ratios, net worth and working capital requirements. The note is collateralized by substantially all assets of the Company. The note payable agreement was amended in 2023 with modifications to the requirements. The minimum working capital covenant was increased to $15,000,000 and the minimum net worth covenant was increased to $30,000,000. We are required to maintain a debt service coverage ratio of at least 1.25:1.00. The balances of the notes payable are as follows. The balances reflect the updated agreement: 2023 2022 Revolving Note Payable $ — $ — Term Note Payable — 4,000,000 Reducing Revolving Note Payable 20,001,000 1,000 Less unamortized debt issuance costs — (2,771) 20,001,000 3,998,229 Less current portion — (1,000,000) $ 20,001,000 $ 2,998,229 Principal maturities for the next five years are estimated as follows: Years Ending December 31, Principal 2024 $ — 2025 — 2026 — 2027 — 2028 — thereafter 20,001,000 20,001,000 |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2023 | |
Employee Benefit Plans [Abstract] | |
Employee Benefit Plans | EMPLOYEE BENEFIT PLANS Dakota Ethanol maintains a 401(k) plan for the employees who meet the eligibility requirements set forth in the plan documents. Dakota Ethanol matches a percentage of the employees' contributed earnings. Employer contributions to the plan totaled approximately $160,000, $157,000 and $142,000 for the years ended December 31, 2023, 2022 and 2021, respectively. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Measurements [Abstract] | |
Fair Value Measurements | FAIR VALUE MEASUREMENTS The Company complies with the fair value measurements and disclosures standard which defines fair value, establishes a framework for measuring fair value, and expands disclosure for those assets and liabilities carried on the balance sheet on a fair value basis. The Company's balance sheet contains derivative financial instruments that are recorded at fair value on a recurring basis. Fair value measurements and disclosures require that assets and liabilities carried at fair value be classified and disclosed according to the process for determining fair value. There are three levels of determining fair value. Level 1 uses quoted market prices in active markets for identical assets or liabilities. Level 2 uses observable market based inputs or unobservable inputs that are corroborated by market data. Level 3 uses unobservable inputs that are not corroborated by market data. A description of the valuation methodologies used for instruments measured at fair value, as well as the general classification of such instruments pursuant to the valuation hierarchy, is set forth below. Derivative financial instruments . Commodity futures and options contracts are reported at fair value utilizing Level 1 inputs. For these contracts, the Company obtains fair value measurements from an independent pricing service. The fair value measurements consider observable data that may include dealer quotes and live trading levels from the Chicago Board of Trade (CBOT) and New York Mercantile Exchange (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 December 31, 2023 and 2022, 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 December 31, 2023 Assets: Derivative financial instruments, futures and options contracts $ 289,681 $ 289,681 $ — $ — Forward contracts 16,878 — 16,878 — Liabilities: Derivative financial instruments, futures and options contracts $ 200 $ 200 $ — $ — Forward contracts 1,114,590 — 1,114,590 — December 31, 2022 Assets: Derivative financial instruments, futures and options contracts $ 252,450 $ 252,450 $ — $ — Forward contracts 922,181 — 922,181 — Liabilities: Derivative financial instruments, futures and options contracts $ 395,300 $ 395,300 $ — $ — Forward contracts 435,053 — 435,053 — During the years ended December 31, 2023 and 2022, the Company did not make any changes between Level 1 and Level 2 assets and liabilities. As of December 31, 2023 and 2022, the Company did not have any Level 3 assets or liabilities. Certain financial assets and financial liabilities are measured at fair value on a nonrecurring basis; that is, the instruments are not measured at fair value on an ongoing basis but are subject to fair value adjustments in certain circumstances (for example, when there is evidence of impairment). Financial assets and financial liabilities measured at fair value on a non-recurring basis were not significant at December 31, 2023 and 2022. Disclosure requirements for fair value of financial instruments require disclosure of the fair value of financial assets and financial liabilities, including those financial assets and financial liabilities that are not measured and reported at fair value on a recurring basis or nonrecurring basis. The methodologies for estimating the fair value of financial assets and financial liabilities that are measured at fair value on a recurring or nonrecurring basis are discussed above. The Company believes the carrying amount of cash and cash equivalents (level 1), accounts receivable (level 2), accounts payable and accruals (level 2) and short-term debt (level 2) approximates fair value. The carrying amount of long-term obligations (level 3) at December 31, 2023 of $20,001,000 had an estimated fair value of approximately $20,001,000 based on estimated interest rates for comparable debt. The carrying amount of long-term obligations at December 31, 2022 of $4,001,000 had an estimated fair value of approximately $4,001,000. |
Commitments, Contingencies and
Commitments, Contingencies and Agreements | 12 Months Ended |
Dec. 31, 2023 | |
Commitments, Contingencies and Agreements [Abstract] | |
Commitments, Contingencies and Agreements | COMMITMENTS, CONTINGENCIES AND AGREEMENTS Dakota Ethanol has entered into contracts and agreements regarding the operation of the ethanol plant as follows: Natural Gas - The agreements provide Dakota Ethanol with transportation and distribution services for natural gas through October 2028, and is renewable annually thereafter. Fees for the services are at tariff rates approved by regulatory agencies. The agreement does not require minimum purchases of natural gas during their initial term. Electricity - The agreement provides Dakota Ethanol with electric service through June 2029. The contract automatically renews unless prior notice of cancellation is given. The agreement sets rates for energy usage based on market rates and requires a minimum charge each month during the term of the agreement. Expenses related to the agreements for the purchase of electricity and natural gas were approximately $13,462,000, $13,897,000, and $12,415,000, for the years ended December 31, 2023, 2022 and 2021, respectively. Minimum annual payments during the term of the electricity agreement are as follows: Years Ending December 31, Amount 2024 $1,381,722 2025 1,381,722 2026 1,381,722 2027 1,381,722 2028 1,020,536 thereafter 92,400 Ethanol Fuel Marketing Agreement - Dakota Ethanol has an agreement with RPMG, for the marketing of all ethanol produced by the plant. The agreement continues indefinitely unless terminated under terms set forth in the agreement. Based on the terms of the marketing agreement, RPMG will use commercially reasonable efforts to obtain the best price for all ethanol sold subject to the terms of the marketing agreement. RPMG shall have discretion to determine the price, terms and conditions of the sale of ethanol that is sold and marketed as indexed gallons. Distiller's Grain Marketing Agreement - Dakota Ethanol has an agreement with RPMG, for the marketing of all distiller's dried grains produced by the plant. The agreement continues indefinitely unless terminated under terms set forth in the agreement. Corn Oil Marketing Agreement - Dakota Ethanol has an agreement with RPMG, for the marketing of all corn oil produced by the plant. The agreement continues indefinitely unless terminated under terms set forth in the agreement. Revenues and marketing fees related to the agreements are as follows: Years Ended December 31, 2023 2022 2021 Revenues ethanol $ 212,497,680 $ 209,721,622 $ 203,807,925 Revenues distillers grains 13,268,415 15,980,263 13,971,006 Revenues corn oil 17,971,900 20,053,909 14,330,754 Marketing fees ethanol $ 230,553 $ 293,253 $ 267,348 Marketing fees distillers grains 61,817 67,294 65,651 Marketing fees corn oil 60,618 54,022 50,631 Agreements On June 24, 2022, Dakota Ethanol, LLC, entered into the Precedent Agreement West Leg 2023 Expansion between Northern Natural Gas Company and Dakota Ethanol (the "West Leg Agreement"). Pursuant to the West Leg Agreement, Dakota Ethanol will receive additional firm commitment natural gas transportation services. In order to secure these firm commitment natural gas transportation services, Dakota Ethanol to paid Northern Natural Gas Company a contribution to the cost of constructing certain additional natural gas pipeline and storage facilities. Dakota Ethanol's contribution was $8,890,000. For a period of five years beginning on November 1, 2023, Dakota Ethanol is entitled to a firm natural gas commitment of 7,000 decatherms per day during the winter months (between November 1 and March 31 each year), and firm commitment of 4,340 decatherms per day during the summer months. The payments and escrow account to Northern Natural Gas are included in other assets on the consolidated balance sheet. From time to time in the normal course of business, the Company can be subject to litigation based on its operations. There is no current litigation nor any litigation that is considered probable at this time. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2023 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | RELATED PARTY TRANSACTIONSThe Company purchased corn and services from members of its Board of Directors that farm and operate local businesses. Corn purchases from these related parties during the fiscal years ended December 31, 2023, 2022 and 2021 totaled approximately $2,233,000, $1,964,000 and $2,139,000, respectively. As of December 31, 2023 and 2022, the Company had no outstanding obligations to these related parties |
Captive Insurance
Captive Insurance | 12 Months Ended |
Dec. 31, 2023 | |
Captive Insurance [Abstract] | |
Captive Insurance | CAPTIVE INSURANCE The Company participates, along with other plants in the industry, in a group captive insurance company (Captive). The Captive insures losses related to workman's compensation, commercial property and general liability. The Captive reinsures catastrophic losses for all participants, including the Company, in excess of predetermined amounts. The Company's premiums are accrued by a charge to income for the period to which the premium relates and is remitted by the Company's insurer to the captive reinsurer. These premiums are structured such that the Company has made a prepaid collateral deposit estimated for losses related to the above coverage. The Captive insurer has estimated and collected an amount in excess of the estimated losses but less than the catastrophic loss limit insured by the Captive. The Company cannot be assessed over the amount in the collateral fund. |
Quarterly Financial Reporting (
Quarterly Financial Reporting (Unaudited) | 12 Months Ended |
Dec. 31, 2023 | |
Quarterly Financial Data [Abstract] | |
Quarterly Financial Reporting (Unaudited) | QUARTERLY FINANCIAL REPORTING (UNAUDITED) Summary quarterly results are as follows: First Quarter Second Quarter Third Quarter Fourth Quarter Year ended December 31, 2023 Total revenues $ 77,841,106 $ 74,179,247 $ 66,916,014 $ 61,504,595 Gross profit 3,898,593 5,831,008 14,277,361 11,707,329 Income from operations 2,447,091 4,527,864 13,022,025 9,884,316 Net income 3,417,060 8,628,786 16,114,768 14,220,779 Basic and diluted earnings per unit 0.12 0.29 . 0.54 0.48 Year ended December 31, 2022 Total revenues $ 64,450,894 $ 75,437,299 $ 74,210,499 $ 68,466,005 Gross profit 2,692,799 8,835,660 7,401,848 7,923,409 Income from operations 1,444,920 7,683,645 6,133,380 6,637,150 Net income 1,665,199 11,122,974 6,509,692 8,004,092 Basic and diluted earnings per unit 0.06 0.38 0.22 0.26 Year ended December 31, 2021 Total revenues $ 48,615,653 $ 64,238,127 $ 63,794,494 $ 82,341,329 Gross profit (loss) 6,957,219 9,468,054 9,041,115 26,247,600 Income (loss) from operations 5,706,085 8,191,959 7,791,872 24,593,778 Net income (loss) 6,535,530 10,058,652 8,812,557 31,679,547 Basic and diluted earnings (loss) per unit 0.22 0.34 0.30 1.07 |
Segment Reporting
Segment Reporting | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
Segment Reporting Disclosure | SEGMENTS The Company reports its financial and operating performance in two segments: (1) production, which includes the manufacture and marketing of fuel-grade ethanol and co-products of the ethanol production process and (2) ethanol producing equity method investments, which consists of the aggregation of the Company's two equity method operating segments of investment in Guardian Hankinson, LLC and investment in Ring-neck Energy & Feed, LLC. The Company discloses its other identified operating segments in an all other category, which consists of the Company's investments in RPMG, LLC, Lawrenceville Tank, LLC, and Guardian Energy Management, LLC. The Company's two reportable segments have been identified based on their unique characteristics. Our production segment is the Company's ethanol plant that is operated in a manner chosen by our chief decision making team. The ethanol producing equity method segment are aggregated operating segments investments that have exceeded the quantitative thresholds for reportable segments which have similar economic characteristics but our chief decision making team does not have input into the daily operations of those entities. The all other category is comprised of investments that fall below the quantitative thresholds for reporting segments and the Company's chief decision making team has no input into their daily operations. Production includes the core operating drivers of the Company's consolidated financial statements which consist of the production and sale of ethanol and its co-products. Ethanol producing equity method investments derive their revenues from the production and sale of ethanol and its co-products. The all other category receives its revenues from marketing fees, management fees, and storage fees. The reconciliation item is necessary due to reportable segments not being consolidated in the financial statements, but rather are reflected as equity method investments. The segments were identified using standards under ASC 280-10-50. They each engage in business activities, the operating results are reviewed by the Company’s chief operating decision maker, and discrete financial information is available for each segment. The following tables set forth certain financial data for the Company's operating segments: Year Ended Year Ended Year Ended December 31, 2023 December 31, 2022 December 31, 2021 Net Sales Production $ 280,440,962 $ 282,564,697 $ 258,989,603 Ethanol Producing Equity Method Investments 598,117,394 722,085,949 650,859,715 All Other 14,801,648 17,545,070 16,262,276 Total 893,360,004 1,022,195,716 926,111,594 Reconciliation (612,919,042) (739,631,019) (667,121,991) Consolidated $ 280,440,962 $ 282,564,697 $ 258,989,603 Gross Profit Production $ 35,714,291 $ 26,853,716 $ 51,713,988 Ethanol Producing Equity Method Investments 65,244,501 47,752,808 102,631,701 All Other 11,415,551 11,794,408 10,280,024 Total 112,374,343 86,400,932 164,625,713 Reconciliation (76,660,052) (59,547,216) (112,911,725) Consolidated $ 35,714,291 $ 26,853,716 $ 51,713,988 Net Income Production $ 42,381,393 $ 27,301,957 $ 57,086,286 Ethanol Producing Equity Method Investments 70,665,304 31,836,172 97,010,893 All Other 7,491,308 5,397,812 5,538,295 Total 120,538,005 64,535,941 159,635,474 Reconciliation (78,156,612) (37,233,984) (102,549,188) Consolidated $ 42,381,393 $ 27,301,957 $ 57,086,286 Interest Income Production $ 506,435 $ 159,395 $ 13,361 Ethanol Producing Equity Method Investments 427,944 99,295 39,177 All Other 6,068,271 2,869,090 2,135,470 Total 7,002,650 3,127,780 2,188,008 Reconciliation (6,496,215) (2,968,385) (2,174,647) Consolidated $ 506,435 $ 159,395 $ 13,361 Interest Expense Production $ 212,532 $ 90,881 $ 727,452 Ethanol Producing Equity Method Investments 3,937,010 3,235,797 3,293,641 All Other 9,256,000 5,705,000 3,082,000 Total 13,405,542 9,031,678 7,103,093 Reconciliation (13,193,010) (8,940,797) (6,375,641) Consolidated $ 212,532 $ 90,881 727,452 Depreciation and Amortization Production $ 5,859,683 $ 5,060,975 $ 5,396,440 Ethanol Producing Equity Method Investments 25,694,763 26,372,193 26,798,254 All Other 176,144 167,004 204,745 Total 31,730,590 31,600,172 32,399,439 Reconciliation (25,870,907) (26,539,197) (27,002,999) Consolidated $ 5,859,683 $ 5,060,975 $ 5,396,440 Expenditures for Additions to Long-lived Assets Production $ 1,500,166 $ 9,943,710 $ 2,061,972 Ethanol Producing Equity Method Investments 14,680,422 2,608,185 1,780,335 All Other — 128,442 — Total 16,180,588 12,680,337 3,842,307 Reconciliation (14,680,422) (2,736,627) (1,780,335) Consolidated $ 1,500,166 $ 9,943,710 $ 2,061,972 December 31, 2023 December 31, 2022 Total Assets Production $ 193,384,154 $ 156,406,527 Ethanol Producing Equity Method Investments 228,609,037 239,476,419 All Other 299,041,128 296,653,249 Total 721,034,319 692,536,195 Reconciliation (527,650,165) (536,129,668) Consolidated $ 193,384,154 $ 156,406,527 Equity Method Investments Production $ 55,233,080 $ 17,691,011 Ethanol Producing Equity Method Investments 5,607,429 5,808,086 All Other 226,052 214,342 Total 61,066,561 23,713,439 Reconciliation (5,833,481) (6,022,428) Consolidated $ 55,233,080 $ 17,691,011 |
SEC Schedule, Article 12-04, Co
SEC Schedule, Article 12-04, Condensed Financial Information of Registrant | 12 Months Ended |
Dec. 31, 2023 | |
Condensed Financial Information Disclosure [Abstract] | |
Condensed Financial Information of Parent Company Only Disclosure | PARENT FINANCIAL STATEMENTS The following financial information represents the unconsolidated financial statements of Lake Area Corn Processors, LLC as of December 31, 2023 and 2022, and for the years ended December 31, 2023, 2022 and 2021. The Company's ability to receive distributions from its wholly owned subsidiary, Dakota Ethanol, LLC, is based on the terms and conditions set forth in the Fifth Amendment to its credit agreement with Farm Credit Services of America, PCA and Farm Credit Services of America, FLCA. Under the Fifth Amendment, if no event of default or potential default exists, Dakota Ethanol may make distributions so long as the Company's working capital stays above $20,000,000 post distribution. The unconsolidated balance sheet is as follows: LAKE AREA CORN PROCESSORS, LLC UNCONSOLIDATED BALANCE SHEETS December 31, 2023 December 31, 2022 ASSETS CURRENT ASSETS Cash and cash equivalents $ 92,223 $ 114,718 Prepaid expenses 4,700 4,700 Total current assets 96,923 119,418 OTHER ASSETS Goodwill 10,395,766 10,395,766 Investment in Dakota Ethanol 72,201,447 82,253,625 Investments - other 52,707,140 15,188,797 Total other assets 135,304,353 107,838,188 TOTAL ASSETS $ 135,401,276 $ 107,957,606 LIABILITIES AND MEMBERS' EQUITY CURRENT LIABILITIES Outstanding checks in excess of bank balance 7,847 — Accounts Payable — 9,600 Total current liabilities 7,847 9,600 LONG-TERM LIABILITIES Total long-term liabilities — — MEMBERS' EQUITY (29,620,000 units issued and outstanding) 135,393,429 107,948,006 TOTAL LIABILITIES AND MEMBERS' EQUITY $ 135,401,276 $ 107,957,606 The unconsolidated statement of operation is as follows: LAKE AREA CORN PROCESSORS, LLC UNCONSOLIDATED STATEMENTS OF OPERATIONS Year Ended Year Ended Year Ended December 31, 2023 December 31, 2022 December 31, 2021 EQUITY IN NET INCOME OF CONSOLIDATED SUBSIDIARY $ 33,858,889 $ 23,985,264 $ 47,366,330 OPERATING EXPENSES 119,948 55,829 83,659 INCOME FROM OPERATIONS 33,738,941 23,929,435 47,282,671 OTHER INCOME (EXPENSE) Interest and other income 12,549 35,219 7,112 Equity in net income of investments 8,629,903 3,337,303 9,796,503 Total other income 8,642,452 3,372,522 9,803,615 NET INCOME $ 42,381,393 $ 27,301,957 $ 57,086,286 The unconsolidated statement of cash flows is as follows: LAKE AREA CORN PROCESSORS, LLC UNCONSOLIDATED STATEMENTS OF CASH FLOWS Year Ended Year Ended Year Ended December 31, 2023 December 31, 2022 December 31, 2021 OPERATING ACTIVITIES Net income $ 42,381,393 $ 27,301,957 $ 57,086,286 Adjustments to reconcile net income to net cash provided by operating activities Distributions in excess of earnings (earnings in excess of distributions) from investments 6,681,282 5,892,697 (3,346,503) Equity in (net income) of consolidated subsidiary (33,834,262) (23,985,264) (47,366,330) (Increase) decrease in Accounts receivable - subsidiary — — (2,500,000) Prepaid expenses — (4,700) 24,542 Increase (decrease) in Accounts payable (9,600) 9,600 — NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES 15,218,813 9,214,290 3,897,995 INVESTING ACTIVITIES Distributions received from consolidated subsidiary 43,886,439 23,602,000 5,050,744 Purchase of investments (44,199,624) — — NET CASH PROVIDED BY INVESTING ACTIVITIES (313,185) 23,602,000 5,050,744 FINANCING ACTIVITIES Outstanding checks in excess of bank balance 7,847 — — Distributions to members 123 (32,822,816) (8,886,000) NET CASH USED FOR FINANCING ACTIVITIES — (32,822,816) (8,886,000) NET INCREASE (DECREASE) IN CASH,CASH EQUIVALENTS, AND RESTRICTED CASH 14,905,628 (6,526) 62,739 CASH,CASH EQUIVALENTS, AND RESTRICTED CASH AT BEGINNING OF PERIOD 114,718 121,244 58,505 CASH,CASH EQUIVALENTS, AND RESTRICTED CASH AT END OF PERIOD $ 15,020,346 $ 114,718 $ 121,244 |
Accounting Policies
Accounting Policies | 12 Months Ended |
Dec. 31, 2023 | |
Summary of Significant 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 ASC Topic 606, Revenue from Contracts with Customers requires the Company to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance requires the Company to apply the following steps: (1) identify the contract with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations in the contract; and (5) recognize revenue when, or as, the Company satisfies a performance obligation. The Company generally recognizes revenue at a point in time. The Company's contracts with customers have one performance obligation and a contract duration of one year or less. The following is a description of principal activities from which we generate revenue. Revenues from contracts with customers are recognized when control of the promised goods or services are transferred to our customers, in an amount that reflects the consideration that we expect to receive in exchange for those goods or services. Generally, ethanol and related products are shipped FOB shipping point and control of the goods transfers to customers when the goods are loaded into trucks or when rail cars are shipped. Consideration is based on predetermined contractual prices or on current market prices. • Sales of Ethanol • Sales of Distillers Grains • Sales of Distillers Corn Oil Disaggregation of Revenue: All revenue recognized in the statement of operations is considered to be revenue from contracts with customers. The following table depicts the disaggregation of revenue according to product line: 2023 2022 2021 Revenues ethanol $ 212,267,127 $ 209,428,369 $ 203,540,577 Revenues distillers grains 50,262,553 53,136,441 41,168,903 Revenues distillers corn oil 17,911,282 19,999,887 14,280,123 $ 280,440,962 $ 282,564,697 $ 258,989,603 Contract Assets and Contract Liabilities: The Company receives payments from customers based upon contractual billing schedules; accounts receivable are recorded when the right to consideration becomes unconditional. Contract liabilities include payments received in advance of performance under the contract, and are realized with the associated revenue recognized under the contract. The Company has 0 significant contract assets or contract liabilities from contracts with customers at December 31, 2023 and 2022. Shipping Costs 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. When the Company performs shipping and handling activities after the transfer of control to the customers (e.g., when control transfers prior to delivery), they are considered as fulfillment activities, and accordingly, the costs are accrued for when the related revenue is recognized. Cost of Revenues The primary raw materials we use to produce ethanol, distillers grains and corn oil are corn and natural gas. Electricity, raw materials expense (chemicals and denaturant), direct labor costs, and shipping costs on 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, net realizable value is based on estimated selling prices in the ordinary course of business less reasonably predictable costs of completion, disposal and transportation. |
Cash and Cash Equivalents | Cash, Cash Equivalents, and Restricted Cash Cash and cash equivalents consist of demand accounts and other accounts with original maturities of three months or less that provide withdrawal privileges. Restricted cash is subject to a contractual restriction and not readily available in accordance with the terms of the West Leg agreement. December 31, 2023 December 31, 2022 Cash and Cash Equivalents $ 36,773,989 $ 27,004,205 Restricted Cash (included in other assets) 555,043 — Total Cash, Cash Equivalents, and Restricted Cash $ 37,329,032 $ 27,004,205 |
Receivables and Credit Policies | Receivables and Credit Policies Accounts receivable are uncollateralized customer obligations due under normal trade terms requiring payment within fifteen days from the invoice date. Unpaid accounts receivable with invoice dates over thirty days old bear interest at 1.5% per month. Accounts receivable are stated at the amount billed to the customer. Payments of accounts receivable are allocated to the specific invoices identified on the customer's remittance advice or, if unspecified, are applied to the earliest unpaid invoices. The carrying amount of trade receivables is reduced by a valuation allowance that reflects management's best estimate of the amounts that will not be collected. Management regularly reviews trade receivable balances and based on an assessment of current creditworthiness, estimates the portion, if any, of the balance that will not be collected. The valuation allowance was determined to be immaterial as of December 31, 2023 and 2022. |
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 its ongoing business operations including price risks on anticipated purchases of corn, natural gas, the sale of ethanol, distillers grains and distillers corn oil. The Company manages these risks by using forward, future and options derivative instruments. 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, unfavorable market conditions result from rising corn prices. 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 are 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. Additionally, the crisis in Ukraine may effect the price of corn, and by extension, our business. Certain contracts that 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 December 31, 2023, the Company is committed to purchasing approximately 4.1 million bushels of corn on a forward contract basis with an average price of $4.75 per bushel. The total corn purchase contracts represent 12% of the projected annual plant corn usage. The Company has 580,000 bushels of corn inventory delivered under delayed-pricing contracts. The contracts have various pricing deadlines through August 25, 2024. The Company is subject to risk of changes in the corn market until they are priced. 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. Under these arrangements, the Company assumes the risk of a price decrease in the market price of natural gas between the time the price is fixed and the time the natural gas is delivered. At December 31, 2023, the Company is committed to purchasing approximately 1,495,000 MMBtu's of natural gas with an average price of $3.50 per MMBtu. The Company accounts for these transactions as normal purchases, and accordingly, does not mark these transactions to market. The natural gas purchases represent approximately 71% of the projected annual plant requirements. 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. Under these arrangements, the Company assumes the risk of a price increase in the market price of distillers grain between the time the price is fixed and the time the distillers grains are delivered. At December 31, 2023, the Company is committed to selling approximately 46,000 dry equivalent tons of distillers grains with an average price of $189 per ton. The Company accounts for these transactions as normal sales, and accordingly, does not mark these transactions to market. The distillers grains sales represent approximately 21% 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. 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 December 31, 2023, the Company is committed to selling approximately 1,709,000 pounds of distillers corn oil with an average price of $0.48 per pound. The Company accounts for these transactions as normal sales, and accordingly, does not mark these transactions to market. The distillers corn oil sales represent approximately 5% of the projected annual plant production. The Company does not have any firm-priced sales commitments for ethanol as of December 31, 2023. 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. 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, or a normal purchase, normal sale exemption is elected. Although the contracts are considered economic hedges of specified risks, they are not designated and accounted for as hedging instruments. As part of our trading activity, the Company uses futures and option contracts offered through regulated commodity exchanges to reduce risk of loss in the market value of inventories and purchase commitments. Derivatives not designated as hedging instruments at December 31, 2023 and December 31, 2022 were as follows: Balance Sheet Classification December 31, 2023 December 31, 2022 Corn forward contracts in gain position $ 16,878 $ 922,181 Futures and options contracts in gain position 289,681 252,450 Futures and options contracts in loss position (200) (395,300) Total forward, futures and options contracts 306,359 779,331 Cash held by broker 848,798 2,077,108 Current Assets $ 1,155,157 $ 2,856,439 Corn forward contracts in loss position Current Liabilities $ (1,114,590) $ (435,053) Futures and options 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. Gains and losses related to derivative contracts related to corn and natural gas are included as a component of costs of revenues. Statement of Operations Years Ended December 31, Classification 2023 2022 2021 Net realized and unrealized gains (losses) related to purchase contracts: Futures and options contracts Cost of Revenues $ 6,354,770 $ (7,009,445) $ (10,137,035) Forward contracts Cost of Revenues (13,212,036) 2,019,133 6,222,026 |
Investments | Investments The Company has investment interests in five companies in related industries. Four of these interests are at ownership shares less than 20%. One of the investments exceeds 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 operations 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 based on the most recent reliable data. |
Use of Estimates | Use of Estimates The preparation of financial statements 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 goodwill and fixed asset impairment evaluation. |
Concentrations of Credit Risk | Concentrations of Credit Risk The Company's cash balances are maintained in bank depositories and regularly exceed federally insured limits. The Company has not experienced any losses in connection with these balances. |
Property and Equipment | Property and Equipment Property and equipment is stated at cost. Significant additions and betterments are capitalized, while expenditures for maintenance, repairs and minor renewals are charged to operations when incurred. Depreciation on assets placed in service is computed using the straight-line method over estimated useful lives as follows: • Land improvements 20-40 years • Equipment 5-20 years • Buildings 15-40 years Equipment relates to two general categories: mechanical equipment and administrative and maintenance equipment. Mechanical equipment generally relates to equipment for handling inventories and the production of ethanol and related products, with useful lives of 15 to 20 years, including boilers, cooling towers, grain bins, centrifuges, conveyors, fermentation tanks, pumps and drying equipment. Administrative and maintenance equipment is equipment with useful lives of 5 to 15 years, including vehicles, computer systems, security equipment, testing devices and shop equipment. The Company reviews its property and equipment for impairment whenever events indicate that the carrying amount of an asset group may not be recoverable. An impairment loss is recorded when the sum of the undiscounted future cash flows is less than the carrying amount of the asset group. An impairment loss is measured as the amount by which the carrying amount of the asset group exceeds its fair value. No indicators of impairment were identified at December 31, 2023. |
Goodwill | Goodwill Annually, as well as when an event triggering impairment may have occurred, the Company performs an impairment test on goodwill, which compares the fair value of the reporting unit with its carrying amount. An impairment charge is recognized, if necessary, for the amount by which the carrying value exceeds the fair value up to the amount of the goodwill attributed to the reporting unit. The Company performs the annual analysis on December 31 of each fiscal year. The Company determined that there was no impairment of goodwill at December 31, 2023 and 2022. |
Earnings Per Unit | Earnings Per Unit For purposes of calculating basic earnings per unit, units issued are considered outstanding on the effective date of issuance. Diluted earnings per unit are calculated by including dilutive potential equity units in the denominator. There were no dilutive equity units for the years ending December 31, 2023, 2022, and 2021. |
Income Taxes | Income Taxes The Company is taxed as a limited liability company under the Internal Revenue Code. The income of the Company flows through to the members to be taxed at the member level rather than the corporate level. Accordingly, the Company has no tax liability. Management has evaluated the Company's tax positions under the Financial Accounting Standards Board issued guidance on accounting for uncertainty in income taxes and concluded that the Company had taken no uncertain tax positions that require adjustment to the financial statements to comply with the provisions of this guidance. Generally, the Company is no longer subject to income tax examinations by the U.S. federal, state or local authorities beyond three years for jurisdictions in which they file. |
Environmental Liabilities | Environmental Liabilities The Company's operations are subject to environmental laws and regulations adopted by various governmental authorities in the jurisdictions in which it operates. These laws require the Company to investigate and remediate the effects of the release or disposal of materials at its locations. Accordingly, the Company has adopted policies, practices and procedures in the areas of pollution control, occupational health and the production, handling, storage and use of hazardous materials to prevent material environmental or other damage, and to limit the financial liability which could result from such events. Environmental liabilities are recorded when the Company's liability is probable and the costs can be reasonably estimated. |
Operating Segment | Reporting Segment Operating segments are defined as components of an enterprise for which separate financial information is available that is evaluated regularly by the chief operating decision maker or decision making group in deciding how to allocate resources and in assessing performance. The Company has determined that it has six operating segments that give rise to two reportable segments. See "Note 3 - Segments" in our Notes to Consolidated Financial Statements included elsewhere in this report for financial information about our segment reporting. |
New Accounting Pronouncements | Recently Issued Accounting Pronouncements There are currently no recently issued accounting pronouncements that the Company determined to be factually relevant to the understanding of the financial statements. |
Risks and Uncertainties | Risks and Uncertainties The Company has certain risks and uncertainties that it will experience during volatile market conditions, which can have a severe impact on operations. The Company's revenues are derived from the sale and distribution of ethanol and distiller grains to customers primarily located in the United States. Corn for the production process is supplied to the plant primarily from local agricultural producers and from purchases on the open market. For the twelve months ended December 31, 2023, ethanol sales averaged approximately 76% of total revenues, while approximately 18% of revenues were generated from the sale of distillers grains and 6% of revenues were generated from the sale of corn oil. For the twelve months ended December 31, 2023, corn costs averaged approximately 81% of cost of goods sold. The Company's operating and financial performance is largely driven by the prices at which it sells ethanol and the net expense of corn. The price of ethanol is influenced by factors such as supply and demand, weather, unleaded gasoline and the petroleum markets, government programs, global political or economic issues, including but not limited to, the war in Ukraine including sanctions associated therewith, shortages, export prices, crude oil prices, currency valuations and government policies in the United States and around the world, over which we have no control. Excess ethanol supply in the market, in particular, puts downward pressure on the price of ethanol. The Company's largest cost of production is corn. The cost of corn is generally impacted by factors such as supply and demand, weather, and government programs, global political or economic issues, including but not limited to the war in Ukraine including sanctions associated therewith, or global damaging growing conditions, such as plant disease or adverse weather, including drought, increased fertilizer costs as well as global conflicts. The Company's risk management program is used to protect against the price volatility of these commodities. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Summary of Significant Accounting Policies [Abstract] | |
Disaggregation of Revenue | The following table depicts the disaggregation of revenue according to product line: 2023 2022 2021 Revenues ethanol $ 212,267,127 $ 209,428,369 $ 203,540,577 Revenues distillers grains 50,262,553 53,136,441 41,168,903 Revenues distillers corn oil 17,911,282 19,999,887 14,280,123 $ 280,440,962 $ 282,564,697 $ 258,989,603 |
Derivatives Not Designated as Hedging Instruments | Derivatives not designated as hedging instruments at December 31, 2023 and December 31, 2022 were as follows: Balance Sheet Classification December 31, 2023 December 31, 2022 Corn forward contracts in gain position $ 16,878 $ 922,181 Futures and options contracts in gain position 289,681 252,450 Futures and options contracts in loss position (200) (395,300) Total forward, futures and options contracts 306,359 779,331 Cash held by broker 848,798 2,077,108 Current Assets $ 1,155,157 $ 2,856,439 Corn forward contracts in loss position Current Liabilities $ (1,114,590) $ (435,053) |
Net realized and unrealized gains (losses) related to purchase contracts | Statement of Operations Years Ended December 31, Classification 2023 2022 2021 Net realized and unrealized gains (losses) related to purchase contracts: Futures and options contracts Cost of Revenues $ 6,354,770 $ (7,009,445) $ (10,137,035) Forward contracts Cost of Revenues (13,212,036) 2,019,133 6,222,026 |
Property, Plant and Equipment | Depreciation on assets placed in service is computed using the straight-line method over estimated useful lives as follows: • Land improvements 20-40 years • Equipment 5-20 years • Buildings 15-40 years |
Schedule of Cash and Cash Equivalents | December 31, 2023 December 31, 2022 Cash and Cash Equivalents $ 36,773,989 $ 27,004,205 Restricted Cash (included in other assets) 555,043 — Total Cash, Cash Equivalents, and Restricted Cash $ 37,329,032 $ 27,004,205 |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Investments [Abstract] | |
Schedule of Equity Method Investments | Condensed, combined unaudited financial information of the Company's investments in RPMG, LT, GH, GEM and REF are as follows: 12/31/2023 12/31/2022 12/31/2021 Current assets $ 375,173,028 $ 376,111,612 $ 370,470,221 Other assets 152,477,137 160,018,056 179,230,853 Current liabilities 316,288,459 334,797,023 308,504,144 Long-term liabilities 22,658,176 36,462,751 44,248,272 Members' equity 188,703,530 164,869,892 196,948,658 Revenue 612,919,042 739,631,019 667,121,991 Gross Profit 76,660,052 59,547,216 112,911,725 Net Income 78,156,612 37,233,984 102,549,188 The following table shows the condensed financial information of Guardian Energy Hankinson; an investment which represents greater than 10% of the Company's assets and income as of December 31,2023. 12/31/2023 12/31/2022 12/31/2021 Current assets $ 34,890,139 $ 35,429,047 $ 43,793,006 Other assets 32,056,021 41,806,802 54,451,233 Current liabilities 52,166,375 49,708,032 34,990,527 Long-term liabilities 8,957,906 8,829,302 6,115,092 Members' equity 5,821,879 18,698,514 57,138,620 Revenue 437,055,386 468,904,462 442,502,900 Gross Profit 54,376,669 20,899,414 68,569,989 Net Income 49,123,365 22,559,896 71,815,190 The following table shows the condensed financial information of Ring-neck Energy & Feed; the investment in which represents greater than 10% of the Company's assets as of December 31, 2022. 12/31/2023 12/31/2022 12/31/2021 Current assets $ 42,843,145 $ 46,040,175 $ 44,893,050 Other assets 118,819,732 116,200,396 122,727,914 Current liabilities 27,230,565 30,950,092 23,595,688 Long-term liabilities 13,700,270 27,633,449 38,133,180 Member's equity 120,732,042 103,657,030 105,892,096 Revenue 161,062,008 253,181,487 208,356,815 Gross Profit 10,867,832 26,853,394 34,061,712 Net Income 21,541,939 9,276,276 25,195,703 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt | 2023 2022 Revolving Note Payable $ — $ — Term Note Payable — 4,000,000 Reducing Revolving Note Payable 20,001,000 1,000 Less unamortized debt issuance costs — (2,771) 20,001,000 3,998,229 Less current portion — (1,000,000) $ 20,001,000 $ 2,998,229 |
Schedule of Maturities of Long-term Debt | Principal maturities for the next five years are estimated as follows: Years Ending December 31, Principal 2024 $ — 2025 — 2026 — 2027 — 2028 — thereafter 20,001,000 20,001,000 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Measurements [Abstract] | |
Fair Value, by Balance Sheet Grouping | The following table summarizes financial assets and financial liabilities measured at fair value on a recurring basis as of December 31, 2023 and 2022, 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 December 31, 2023 Assets: Derivative financial instruments, futures and options contracts $ 289,681 $ 289,681 $ — $ — Forward contracts 16,878 — 16,878 — Liabilities: Derivative financial instruments, futures and options contracts $ 200 $ 200 $ — $ — Forward contracts 1,114,590 — 1,114,590 — December 31, 2022 Assets: Derivative financial instruments, futures and options contracts $ 252,450 $ 252,450 $ — $ — Forward contracts 922,181 — 922,181 — Liabilities: Derivative financial instruments, futures and options contracts $ 395,300 $ 395,300 $ — $ — Forward contracts 435,053 — 435,053 — |
Commitments, Contingencies an_2
Commitments, Contingencies and Agreements (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Commitments, Contingencies and Agreements [Abstract] | |
Contractual Obligation, Fiscal Year Maturity Schedule | Minimum annual payments during the term of the electricity agreement are as follows: Years Ending December 31, Amount 2024 $1,381,722 2025 1,381,722 2026 1,381,722 2027 1,381,722 2028 1,020,536 thereafter 92,400 |
Schedule of Related Party Transactions | Revenues and marketing fees related to the agreements are as follows: Years Ended December 31, 2023 2022 2021 Revenues ethanol $ 212,497,680 $ 209,721,622 $ 203,807,925 Revenues distillers grains 13,268,415 15,980,263 13,971,006 Revenues corn oil 17,971,900 20,053,909 14,330,754 Marketing fees ethanol $ 230,553 $ 293,253 $ 267,348 Marketing fees distillers grains 61,817 67,294 65,651 Marketing fees corn oil 60,618 54,022 50,631 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions | Revenues and marketing fees related to the agreements are as follows: Years Ended December 31, 2023 2022 2021 Revenues ethanol $ 212,497,680 $ 209,721,622 $ 203,807,925 Revenues distillers grains 13,268,415 15,980,263 13,971,006 Revenues corn oil 17,971,900 20,053,909 14,330,754 Marketing fees ethanol $ 230,553 $ 293,253 $ 267,348 Marketing fees distillers grains 61,817 67,294 65,651 Marketing fees corn oil 60,618 54,022 50,631 |
Quarterly Financial Reporting_2
Quarterly Financial Reporting (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Quarterly Financial Data [Abstract] | |
Schedule of Quarterly Financial Information | Summary quarterly results are as follows: First Quarter Second Quarter Third Quarter Fourth Quarter Year ended December 31, 2023 Total revenues $ 77,841,106 $ 74,179,247 $ 66,916,014 $ 61,504,595 Gross profit 3,898,593 5,831,008 14,277,361 11,707,329 Income from operations 2,447,091 4,527,864 13,022,025 9,884,316 Net income 3,417,060 8,628,786 16,114,768 14,220,779 Basic and diluted earnings per unit 0.12 0.29 . 0.54 0.48 Year ended December 31, 2022 Total revenues $ 64,450,894 $ 75,437,299 $ 74,210,499 $ 68,466,005 Gross profit 2,692,799 8,835,660 7,401,848 7,923,409 Income from operations 1,444,920 7,683,645 6,133,380 6,637,150 Net income 1,665,199 11,122,974 6,509,692 8,004,092 Basic and diluted earnings per unit 0.06 0.38 0.22 0.26 Year ended December 31, 2021 Total revenues $ 48,615,653 $ 64,238,127 $ 63,794,494 $ 82,341,329 Gross profit (loss) 6,957,219 9,468,054 9,041,115 26,247,600 Income (loss) from operations 5,706,085 8,191,959 7,791,872 24,593,778 Net income (loss) 6,535,530 10,058,652 8,812,557 31,679,547 Basic and diluted earnings (loss) per unit 0.22 0.34 0.30 1.07 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
Reconciliation of Operating Profit (Loss) from Segments to Consolidated | The following tables set forth certain financial data for the Company's operating segments: Year Ended Year Ended Year Ended December 31, 2023 December 31, 2022 December 31, 2021 Net Sales Production $ 280,440,962 $ 282,564,697 $ 258,989,603 Ethanol Producing Equity Method Investments 598,117,394 722,085,949 650,859,715 All Other 14,801,648 17,545,070 16,262,276 Total 893,360,004 1,022,195,716 926,111,594 Reconciliation (612,919,042) (739,631,019) (667,121,991) Consolidated $ 280,440,962 $ 282,564,697 $ 258,989,603 Gross Profit Production $ 35,714,291 $ 26,853,716 $ 51,713,988 Ethanol Producing Equity Method Investments 65,244,501 47,752,808 102,631,701 All Other 11,415,551 11,794,408 10,280,024 Total 112,374,343 86,400,932 164,625,713 Reconciliation (76,660,052) (59,547,216) (112,911,725) Consolidated $ 35,714,291 $ 26,853,716 $ 51,713,988 Net Income Production $ 42,381,393 $ 27,301,957 $ 57,086,286 Ethanol Producing Equity Method Investments 70,665,304 31,836,172 97,010,893 All Other 7,491,308 5,397,812 5,538,295 Total 120,538,005 64,535,941 159,635,474 Reconciliation (78,156,612) (37,233,984) (102,549,188) Consolidated $ 42,381,393 $ 27,301,957 $ 57,086,286 Interest Income Production $ 506,435 $ 159,395 $ 13,361 Ethanol Producing Equity Method Investments 427,944 99,295 39,177 All Other 6,068,271 2,869,090 2,135,470 Total 7,002,650 3,127,780 2,188,008 Reconciliation (6,496,215) (2,968,385) (2,174,647) Consolidated $ 506,435 $ 159,395 $ 13,361 Interest Expense Production $ 212,532 $ 90,881 $ 727,452 Ethanol Producing Equity Method Investments 3,937,010 3,235,797 3,293,641 All Other 9,256,000 5,705,000 3,082,000 Total 13,405,542 9,031,678 7,103,093 Reconciliation (13,193,010) (8,940,797) (6,375,641) Consolidated $ 212,532 $ 90,881 727,452 Depreciation and Amortization Production $ 5,859,683 $ 5,060,975 $ 5,396,440 Ethanol Producing Equity Method Investments 25,694,763 26,372,193 26,798,254 All Other 176,144 167,004 204,745 Total 31,730,590 31,600,172 32,399,439 Reconciliation (25,870,907) (26,539,197) (27,002,999) Consolidated $ 5,859,683 $ 5,060,975 $ 5,396,440 Expenditures for Additions to Long-lived Assets Production $ 1,500,166 $ 9,943,710 $ 2,061,972 Ethanol Producing Equity Method Investments 14,680,422 2,608,185 1,780,335 All Other — 128,442 — Total 16,180,588 12,680,337 3,842,307 Reconciliation (14,680,422) (2,736,627) (1,780,335) Consolidated $ 1,500,166 $ 9,943,710 $ 2,061,972 |
Reconciliation of Assets from Segment to Consolidated | December 31, 2023 December 31, 2022 Total Assets Production $ 193,384,154 $ 156,406,527 Ethanol Producing Equity Method Investments 228,609,037 239,476,419 All Other 299,041,128 296,653,249 Total 721,034,319 692,536,195 Reconciliation (527,650,165) (536,129,668) Consolidated $ 193,384,154 $ 156,406,527 Equity Method Investments Production $ 55,233,080 $ 17,691,011 Ethanol Producing Equity Method Investments 5,607,429 5,808,086 All Other 226,052 214,342 Total 61,066,561 23,713,439 Reconciliation (5,833,481) (6,022,428) Consolidated $ 55,233,080 $ 17,691,011 |
SEC Schedule, Article 12-04, _2
SEC Schedule, Article 12-04, Condensed Financial Information of Registrant (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Condensed Financial Information Disclosure [Abstract] | |
Condensed Balance Sheet | The unconsolidated balance sheet is as follows: LAKE AREA CORN PROCESSORS, LLC UNCONSOLIDATED BALANCE SHEETS December 31, 2023 December 31, 2022 ASSETS CURRENT ASSETS Cash and cash equivalents $ 92,223 $ 114,718 Prepaid expenses 4,700 4,700 Total current assets 96,923 119,418 OTHER ASSETS Goodwill 10,395,766 10,395,766 Investment in Dakota Ethanol 72,201,447 82,253,625 Investments - other 52,707,140 15,188,797 Total other assets 135,304,353 107,838,188 TOTAL ASSETS $ 135,401,276 $ 107,957,606 LIABILITIES AND MEMBERS' EQUITY CURRENT LIABILITIES Outstanding checks in excess of bank balance 7,847 — Accounts Payable — 9,600 Total current liabilities 7,847 9,600 LONG-TERM LIABILITIES Total long-term liabilities — — MEMBERS' EQUITY (29,620,000 units issued and outstanding) 135,393,429 107,948,006 TOTAL LIABILITIES AND MEMBERS' EQUITY $ 135,401,276 $ 107,957,606 |
Condensed Income Statement | The unconsolidated statement of operation is as follows: LAKE AREA CORN PROCESSORS, LLC UNCONSOLIDATED STATEMENTS OF OPERATIONS Year Ended Year Ended Year Ended December 31, 2023 December 31, 2022 December 31, 2021 EQUITY IN NET INCOME OF CONSOLIDATED SUBSIDIARY $ 33,858,889 $ 23,985,264 $ 47,366,330 OPERATING EXPENSES 119,948 55,829 83,659 INCOME FROM OPERATIONS 33,738,941 23,929,435 47,282,671 OTHER INCOME (EXPENSE) Interest and other income 12,549 35,219 7,112 Equity in net income of investments 8,629,903 3,337,303 9,796,503 Total other income 8,642,452 3,372,522 9,803,615 NET INCOME $ 42,381,393 $ 27,301,957 $ 57,086,286 |
Condensed Cash Flow Statement | The unconsolidated statement of cash flows is as follows: LAKE AREA CORN PROCESSORS, LLC UNCONSOLIDATED STATEMENTS OF CASH FLOWS Year Ended Year Ended Year Ended December 31, 2023 December 31, 2022 December 31, 2021 OPERATING ACTIVITIES Net income $ 42,381,393 $ 27,301,957 $ 57,086,286 Adjustments to reconcile net income to net cash provided by operating activities Distributions in excess of earnings (earnings in excess of distributions) from investments 6,681,282 5,892,697 (3,346,503) Equity in (net income) of consolidated subsidiary (33,834,262) (23,985,264) (47,366,330) (Increase) decrease in Accounts receivable - subsidiary — — (2,500,000) Prepaid expenses — (4,700) 24,542 Increase (decrease) in Accounts payable (9,600) 9,600 — NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES 15,218,813 9,214,290 3,897,995 INVESTING ACTIVITIES Distributions received from consolidated subsidiary 43,886,439 23,602,000 5,050,744 Purchase of investments (44,199,624) — — NET CASH PROVIDED BY INVESTING ACTIVITIES (313,185) 23,602,000 5,050,744 FINANCING ACTIVITIES Outstanding checks in excess of bank balance 7,847 — — Distributions to members 123 (32,822,816) (8,886,000) NET CASH USED FOR FINANCING ACTIVITIES — (32,822,816) (8,886,000) NET INCREASE (DECREASE) IN CASH,CASH EQUIVALENTS, AND RESTRICTED CASH 14,905,628 (6,526) 62,739 CASH,CASH EQUIVALENTS, AND RESTRICTED CASH AT BEGINNING OF PERIOD 114,718 121,244 58,505 CASH,CASH EQUIVALENTS, AND RESTRICTED CASH AT END OF PERIOD $ 15,020,346 $ 114,718 $ 121,244 |
Nature of Operations Nature of
Nature of Operations Nature of Operations (Details) gal in Millions | 12 Months Ended |
Dec. 31, 2023 company gal | |
Product Information [Line Items] | |
Number of companies in related industries the Company has investments in | company | 5 |
Ethanol | Product | |
Product Information [Line Items] | |
Annual production capacity | gal | 100 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Disaggregation of Revenues (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Disaggregation of Revenue [Line Items] | |||
Revenues | $ 280,440,962 | $ 282,564,697 | $ 258,989,603 |
Ethanol | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 212,267,127 | 209,428,369 | 203,540,577 |
Distillers Grain | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 50,262,553 | 53,136,441 | 41,168,903 |
Corn Oil | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | $ 17,911,282 | $ 19,999,887 | $ 14,280,123 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies Receivables (Details) | 12 Months Ended |
Dec. 31, 2023 | |
Summary of Significant Accounting Policies [Abstract] | |
Payment term | 15 days |
Payment term before interest is applied | 30 days |
Interest rate | 1.50% |
Derivative Instruments - Balanc
Derivative Instruments - Balance Sheet (Details) | Dec. 31, 2023 USD ($) T bu $ / MMBTU $ / usd_per_lb $ / T $ / bu | Dec. 31, 2022 USD ($) |
Derivative Instruments Not Designated as Hedging Instruments [Abstract] | ||
Derivative financial instruments | $ 1,155,157 | $ 2,856,439 |
Corn | ||
Derivatives, Fair Value [Line Items] | ||
Number of derivative instruments | bu | 4,100,000 | |
Average price per unit | $ / bu | 4.75 | |
Product usage, percentage | 12% | |
Number of Price Risk Derivatives Held | bu | 580,000 | |
Natural Gas | ||
Derivatives, Fair Value [Line Items] | ||
Average price per unit | $ / MMBTU | 3.50 | |
Product usage, percentage | 71% | |
Number of Price Risk Derivatives Held | bu | 1,495,000 | |
Distillers Grain | ||
Derivatives, Fair Value [Line Items] | ||
Number of derivative instruments | T | 46,000 | |
Average price per unit | $ / T | 189 | |
Product usage, percentage | 21% | |
Distillers Corn Oil | ||
Derivatives, Fair Value [Line Items] | ||
Number of derivative instruments | bu | 1,709,000 | |
Average price per unit | $ / usd_per_lb | 0.48 | |
Product usage, percentage | 5% | |
Current Assets | Not Designated as Hedging Instrument | ||
Derivative Instruments Not Designated as Hedging Instruments [Abstract] | ||
Derivative assets, current | $ 306,359 | 779,331 |
Cash held by broker | 848,798 | 2,077,108 |
Derivative financial instruments | 1,155,157 | 2,856,439 |
Current Assets | Forward Contracts | Not Designated as Hedging Instrument | ||
Derivative Instruments Not Designated as Hedging Instruments [Abstract] | ||
Derivative assets, current | 16,878 | 922,181 |
Current Assets | Future | Not Designated as Hedging Instrument | ||
Derivative Instruments Not Designated as Hedging Instruments [Abstract] | ||
Derivative assets, current | 289,681 | 252,450 |
Derivative liabilities, current | (200) | (395,300) |
Current Liabilities | Forward Contracts | Not Designated as Hedging Instrument | ||
Derivative Instruments Not Designated as Hedging Instruments [Abstract] | ||
Derivative liabilities, current | $ (1,114,590) | $ (435,053) |
Derivative Instruments - Income
Derivative Instruments - Income Statement (Details) - Not Designated as Hedging Instrument - Cost of Sales - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Future | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net realized and unrealized gains (losses) related to purchase contracts | $ 6,354,770 | $ (7,009,445) | $ (10,137,035) |
Forward Contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net realized and unrealized gains (losses) related to purchase contracts | $ (13,212,036) | $ 2,019,133 | $ 6,222,026 |
Summary Investments (Details)
Summary Investments (Details) | Dec. 31, 2023 company |
Summary of Significant Accounting Policies [Abstract] | |
Number of companies in related industries the Company has investments in | 5 |
Property and Equipment (Details
Property and Equipment (Details) | Dec. 31, 2023 |
Land Improvements | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 40 years |
Land Improvements | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 20 years |
Equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 20 years |
Equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 5 years |
Building | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 40 years |
Building | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 15 years |
Machinery and Equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 20 years |
Machinery and Equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 15 years |
Other Machinery and Equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 15 years |
Other Machinery and Equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 5 years |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Goodwill (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Summary of Significant Accounting Policies [Abstract] | ||
Impairment of goodwill | $ 0 | $ 0 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies Risks and Uncertainties (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Concentration Risk [Line Items] | ||||
Impairment of goodwill | $ 0 | $ 0 | ||
Commodity Contract Asset, Current | 0 | 0 | ||
Contract with Customer, Liability, Current | 0 | 0 | ||
Cash and cash equivalents | 36,773,989 | 27,004,205 | ||
Restricted Cash | 555,043 | 0 | ||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | $ 37,329,032 | $ 27,004,205 | $ 37,995,310 | $ 18,637,811 |
Weighted Average Number of Shares Outstanding, Diluted, Adjustment | 0 | 0 | 0 | |
One Plant | ||||
Concentration Risk [Line Items] | ||||
Percent of Ownership, Equity Investment | 2,000% | |||
Four Plants | ||||
Concentration Risk [Line Items] | ||||
Percent of Ownership, Equity Investment | 2,000% | |||
Sales Revenue, Segment | Product Concentration Risk | Ethanol | ||||
Concentration Risk [Line Items] | ||||
Concentration risk percentage | 76% | |||
Sales Revenue, Segment | Product Concentration Risk | Distillers Grain | ||||
Concentration Risk [Line Items] | ||||
Concentration risk percentage | 18% | |||
Sales Revenue, Segment | Product Concentration Risk | Corn Oil | ||||
Concentration Risk [Line Items] | ||||
Concentration risk percentage | 6% | |||
Cost of Goods, Segment | Product Concentration Risk | Corn | ||||
Concentration Risk [Line Items] | ||||
Concentration risk percentage | 81% |
Inventory (Details)
Inventory (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Inventory [Line Items] | ||
Raw Materials | $ 8,558,268 | $ 12,397,256 |
Finished Goods | 2,853,609 | 10,050,394 |
Work in Process | 1,337,989 | 1,353,715 |
Parts Inventory | 1,923,844 | 1,994,346 |
Inventory | 14,673,710 | 25,795,711 |
Inventory Write-down | $ 29,000 | $ 2,000 |
Investments Investments - Narra
Investments Investments - Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Schedule of Equity Method Investments [Line Items] | |||
Investments | $ 55,233,080 | $ 17,691,011 | |
Equity in net income (loss) of investments | 9,105,895 | 3,703,767 | $ 10,169,606 |
Undistributed net earnings of investees | 5,178,000 | 3,648,000 | |
Equity Method Investment, Underlying Equity in Net Assets | 55,233,080 | 17,691,011 | |
increase in the amount of investment in underlying equity in net assets | $ 38,854,000 | ||
Renewable Products Marketing Group, LLC (RPMG) | |||
Schedule of Equity Method Investments [Line Items] | |||
Investment interest (as a percent) | 5% | ||
Investments | $ 2,317,000 | 2,286,000 | |
Lawrenceville Tanks, LLC | |||
Schedule of Equity Method Investments [Line Items] | |||
Investment interest (as a percent) | 10% | ||
Investments | $ 209,000 | 216,000 | |
Guardian Hankinson, LLC | |||
Schedule of Equity Method Investments [Line Items] | |||
Investment interest (as a percent) | 10% | ||
Investments | $ 37,424,000 | 1,870,000 | |
Equity in net income (loss) of investments | $ 49,123,365 | 22,559,896 | 71,815,190 |
Guardian Energy Management | |||
Schedule of Equity Method Investments [Line Items] | |||
Investment interest (as a percent) | 20% | ||
Investments | $ 93,000 | 92,000 | |
Ring-neck Energy and Feeds | |||
Schedule of Equity Method Investments [Line Items] | |||
Investment interest (as a percent) | 12% | ||
Investments | $ 14,725,000 | 13,227,000 | |
Amortization of acquisition costs | 884,000 | ||
Basis adjustment | 363,000 | ||
Capitalized interest | $ 521,000 | ||
Amortization period for amortization of investment premium | 20 years | ||
Other Investments Combined | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity in net income (loss) of investments | $ 8,640,000 | 3,704,000 | 10,170,000 |
Proceeds from Equity Method Investment, Distribution | $ 15,763,000 | $ 7,005,000 | $ 6,625,000 |
Investments Investments - Sched
Investments Investments - Schedule of Equity Method Investments (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2023 | Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Schedule of Equity Method Investments [Line Items] | |||||||||||||||
Assets, Current | $ 61,486,747 | $ 59,455,069 | $ 61,486,747 | $ 59,455,069 | |||||||||||
Liabilities, Current | 37,989,725 | 45,460,292 | 37,989,725 | 45,460,292 | |||||||||||
Long-term Debt | 20,001,000 | 3,998,229 | 20,001,000 | 3,998,229 | |||||||||||
REVENUES | 61,504,595 | $ 66,916,014 | $ 74,179,247 | $ 77,841,106 | 68,466,005 | $ 74,210,499 | $ 75,437,299 | $ 64,450,894 | $ 82,341,329 | $ 63,794,494 | $ 64,238,127 | $ 48,615,653 | 280,440,962 | 282,564,697 | $ 258,989,603 |
Gross profit | 11,707,329 | $ 14,277,361 | $ 5,831,008 | $ 3,898,593 | 7,923,409 | $ 7,401,848 | $ 8,835,660 | $ 2,692,799 | 26,247,600 | $ 9,041,115 | $ 9,468,054 | $ 6,957,219 | 35,714,291 | 26,853,716 | 51,713,988 |
Equity in net income of investments | 9,105,895 | 3,703,767 | 10,169,606 | ||||||||||||
Equity Method Investments | |||||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||||
Assets, Current | 375,173,028 | 376,111,612 | 370,470,221 | 375,173,028 | 376,111,612 | 370,470,221 | |||||||||
Other Assets | 152,477,137 | 160,018,056 | 179,230,853 | 152,477,137 | 160,018,056 | 179,230,853 | |||||||||
Liabilities, Current | 316,288,459 | 334,797,023 | 308,504,144 | 316,288,459 | 334,797,023 | 308,504,144 | |||||||||
Long-term Debt | 22,658,176 | 36,462,751 | 44,248,272 | 22,658,176 | 36,462,751 | 44,248,272 | |||||||||
Members' Equity | $ 188,703,530 | 164,869,892 | 196,948,658 | 188,703,530 | 164,869,892 | 196,948,658 | |||||||||
REVENUES | 612,919,042 | 739,631,019 | 667,121,991 | ||||||||||||
Gross profit | 76,660,052 | 59,547,216 | 112,911,725 | ||||||||||||
Equity in net income of investments | 78,156,612 | 37,233,984 | 102,549,188 | ||||||||||||
Ring-neck Energy and Feeds | |||||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||||
REVENUES | 161,062,008 | 253,181,487 | 208,356,815 | ||||||||||||
Gross profit | 10,867,832 | 26,853,394 | 34,061,712 | ||||||||||||
Equity in net income of investments | $ 21,541,939 | 9,276,276 | 25,195,703 | ||||||||||||
Renewable Products Marketing Group, LLC (RPMG) | |||||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||||
Investment interest | 5% | 5% | |||||||||||||
Ring-neck Energy and Feeds | |||||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||||
Assets, Current | $ 42,843,145 | 46,040,175 | 44,893,050 | $ 42,843,145 | 46,040,175 | 44,893,050 | |||||||||
Other Assets | 118,819,732 | 116,200,396 | 122,727,914 | 118,819,732 | 116,200,396 | 122,727,914 | |||||||||
Liabilities, Current | 27,230,565 | 30,950,092 | 23,595,688 | 27,230,565 | 30,950,092 | 23,595,688 | |||||||||
Long-term Debt | 13,700,270 | 27,633,449 | 38,133,180 | 13,700,270 | 27,633,449 | 38,133,180 | |||||||||
Members' Equity | $ 120,732,042 | 103,657,030 | 105,892,096 | $ 120,732,042 | 103,657,030 | 105,892,096 | |||||||||
Investment interest | 12% | 12% | |||||||||||||
Percentage of income from equity method investment | 1,000% | ||||||||||||||
Guardian Hankinson, LLC | |||||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||||
Assets, Current | $ 34,890,139 | 35,429,047 | 43,793,006 | $ 34,890,139 | 35,429,047 | 43,793,006 | |||||||||
Other Assets | 32,056,021 | 41,806,802 | 54,451,233 | 32,056,021 | 41,806,802 | 54,451,233 | |||||||||
Liabilities, Current | 52,166,375 | 49,708,032 | 34,990,527 | 52,166,375 | 49,708,032 | 34,990,527 | |||||||||
Long-term Debt | 8,957,906 | 8,829,302 | 6,115,092 | 8,957,906 | 8,829,302 | 6,115,092 | |||||||||
Members' Equity | $ 5,821,879 | $ 18,698,514 | $ 57,138,620 | 5,821,879 | 18,698,514 | 57,138,620 | |||||||||
REVENUES | 437,055,386 | 468,904,462 | 442,502,900 | ||||||||||||
Gross profit | 54,376,669 | 20,899,414 | 68,569,989 | ||||||||||||
Equity in net income of investments | $ 49,123,365 | $ 22,559,896 | $ 71,815,190 | ||||||||||||
Investment interest | 10% | 10% |
Revolving Operating Note (Detai
Revolving Operating Note (Details) - Farm Credit Services of America | 12 Months Ended |
Dec. 31, 2023 USD ($) Rate | |
Line of Credit | |
Short-term Debt [Line Items] | |
Amount outstanding | $ 0 |
Amount available to be drawn | 20,000,000 |
Revolving Credit Facility | |
Short-term Debt [Line Items] | |
Maximum borrowing capacity | $ 20,000,000 |
Non-use fee | Rate | 0.25% |
Basis points | Rate | 30,000% |
Interest rate | 834% |
Revolving Credit Facility | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | |
Short-term Debt [Line Items] | |
Line of Credit Facility, Interest Rate Description | SOFR 30 |
Debt (Details)
Debt (Details) - USD ($) | 12 Months Ended | ||||
Feb. 06, 2018 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Aug. 01, 2017 | |
Debt Instrument [Line Items] | |||||
Gain (Loss) on Extinguishment of Debt | $ 0 | $ 0 | $ 768,400 | ||
Farm Credit Services of America | |||||
Debt Instrument [Line Items] | |||||
Minimum Net Worth Required for Compliance | 30,000,000 | ||||
working covenant | $ 15,000,000 | ||||
Farm Credit Services of America | Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Basis points | 30,000% | ||||
Interest rate | 834% | ||||
Maximum borrowing capacity | $ 20,000,000 | ||||
Non-use fee | 0.25% | ||||
Farm Credit Services of America | Revolving Credit Facility | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | |||||
Debt Instrument [Line Items] | |||||
Line of Credit Facility, Interest Rate Description | SOFR 30 | ||||
Medium-term Notes | Farm Credit Services of America | |||||
Debt Instrument [Line Items] | |||||
Amount of term note | $ 8,000,000 | ||||
Annual principal payments | $ 1,000,000 | ||||
Basis points | 3.25% | ||||
Revolving Credit Facility | Farm Credit Services of America | |||||
Debt Instrument [Line Items] | |||||
Basis points | 3.25% | ||||
Interest rate | 8.59% | ||||
Reducing revolving promissory note (up to) | $ 60,000,000 | ||||
Periodic decrease in line of credit availability | 2,500,000 | ||||
Maximum borrowing capacity | $ 40,000,000 | ||||
Non-use fee | 0.50% | ||||
Amount outstanding | $ 20,001,000 | ||||
Amount available to be drawn | $ 39,999,000 | ||||
Revolving Credit Facility | Farm Credit Services of America | Debt Service Coverage Ratio | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Covenant Description | 1.25 |
Schedule of Long-Term Notes Pay
Schedule of Long-Term Notes Payable (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Feb. 06, 2018 | |
Debt Instrument [Line Items] | |||
Term Note Payable | $ 20,001,000 | ||
Unamortized Debt Issuance Expense | 0 | $ (2,771) | |
Long-term Debt | 20,001,000 | 3,998,229 | |
Long-term Debt, Current Maturities | 0 | (1,000,000) | |
Notes payable | 20,001,000 | 2,998,229 | |
Farm Credit Services of America | |||
Debt Instrument [Line Items] | |||
Term Note Payable | 0 | 0 | |
working covenant | 15,000,000 | ||
Farm Credit Services of America | Short-Term Debt | |||
Debt Instrument [Line Items] | |||
Line of Credit Facility, Fair Value of Amount Outstanding | 0 | 4,000,000 | |
Farm Credit Services of America | Reducing Revolving Promissory Note | |||
Debt Instrument [Line Items] | |||
Line of Credit Facility, Fair Value of Amount Outstanding | $ 20,001,000 | $ 1,000 | |
Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | Farm Credit Services of America | Medium-term Notes | |||
Debt Instrument [Line Items] | |||
Line of Credit Facility, Interest Rate Description | the SOFR 30 | ||
Revolving Credit Facility | Farm Credit Services of America | |||
Debt Instrument [Line Items] | |||
Reducing revolving promissory note (up to) | $ 60,000,000 |
Principal Maturities of Long-Te
Principal Maturities of Long-Term Notes Payable (Details) | Dec. 31, 2023 USD ($) |
Debt Instrument [Line Items] | |
2019 | $ 0 |
2020 | 0 |
2021 | 0 |
2022 | 0 |
2023 | 0 |
Long-Term Debt, Maturity, after Year Five | 20,001,000 |
Term Note Payable | $ 20,001,000 |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Employee Benefit Plans [Abstract] | |||
Employer contributions | $ 160,000 | $ 157,000 | $ 142,000 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Carrying amount of long-term obligations | $ 20,001,000 | |
Fair Value, Measurements, Recurring | Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Carrying amount of long-term obligations | 20,001,000 | $ 4,001,000 |
Estimated fair value of long-term obligations | 20,001,000 | 4,001,000 |
Future | Fair Value, Measurements, Recurring | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets | 289,681 | 252,450 |
Liabilities | 200 | 395,300 |
Future | Fair Value, Measurements, Recurring | Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets | 289,681 | 252,450 |
Liabilities | 200 | 395,300 |
Future | Fair Value, Measurements, Recurring | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets | 0 | 0 |
Liabilities | 0 | 0 |
Future | Fair Value, Measurements, Recurring | Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets | 0 | 0 |
Liabilities | 0 | 0 |
Forward Contracts | Fair Value, Measurements, Recurring | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets | 16,878 | 922,181 |
Liabilities | 1,114,590 | 435,053 |
Forward Contracts | Fair Value, Measurements, Recurring | Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets | 0 | 0 |
Liabilities | 0 | 0 |
Forward Contracts | Fair Value, Measurements, Recurring | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets | 16,878 | 922,181 |
Liabilities | 1,114,590 | 435,053 |
Forward Contracts | Fair Value, Measurements, Recurring | Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets | 0 | 0 |
Liabilities | $ 0 | $ 0 |
Commitments, Contingencies an_3
Commitments, Contingencies and Agreements (Details) | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2023 USD ($) | Sep. 30, 2023 USD ($) | Jun. 30, 2023 USD ($) | Mar. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Sep. 30, 2022 USD ($) | Jun. 30, 2022 USD ($) | Mar. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Sep. 30, 2021 USD ($) | Jun. 30, 2021 USD ($) | Mar. 31, 2021 USD ($) | Dec. 31, 2023 USD ($) Bcf | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Long-term Purchase Commitment [Line Items] | |||||||||||||||
Purchase Commitment, estimated total contribution | $ 8,890,000 | $ 8,890,000 | |||||||||||||
REVENUES | $ 61,504,595 | $ 66,916,014 | $ 74,179,247 | $ 77,841,106 | $ 68,466,005 | $ 74,210,499 | $ 75,437,299 | $ 64,450,894 | $ 82,341,329 | $ 63,794,494 | $ 64,238,127 | $ 48,615,653 | 280,440,962 | $ 282,564,697 | $ 258,989,603 |
Ethanol | Renewable Products Marketing Group, LLC (RPMG) | |||||||||||||||
Long-term Purchase Commitment [Line Items] | |||||||||||||||
REVENUES | 212,497,680 | 209,721,622 | 203,807,925 | ||||||||||||
Costs and Expenses, Related Party | 230,553 | 293,253 | 267,348 | ||||||||||||
Distillers Grain | Renewable Products Marketing Group, LLC (RPMG) | |||||||||||||||
Long-term Purchase Commitment [Line Items] | |||||||||||||||
REVENUES | 13,268,415 | 15,980,263 | 13,971,006 | ||||||||||||
Costs and Expenses, Related Party | 61,817 | 67,294 | 65,651 | ||||||||||||
Corn Oil | Renewable Products Marketing Group, LLC (RPMG) | |||||||||||||||
Long-term Purchase Commitment [Line Items] | |||||||||||||||
REVENUES | 17,971,900 | 20,053,909 | 14,330,754 | ||||||||||||
Costs and Expenses, Related Party | $ 60,618 | 54,022 | 50,631 | ||||||||||||
Electricity and Natural Gas | November - March 31 | |||||||||||||||
Long-term Purchase Commitment [Line Items] | |||||||||||||||
Long-Term Purchase Commitment, Minimum Volume Required | Bcf | 7,000 | ||||||||||||||
Electricity and Natural Gas | Summer Months | |||||||||||||||
Long-term Purchase Commitment [Line Items] | |||||||||||||||
Long-Term Purchase Commitment, Minimum Volume Required | Bcf | 4,340 | ||||||||||||||
Cost of Sales | |||||||||||||||
Long-term Purchase Commitment [Line Items] | |||||||||||||||
Expenses related to the agreements for the purchase of electricity and natural gas | $ 13,462,000 | $ 13,897,000 | $ 12,415,000 |
Commitments, Contingencies an_4
Commitments, Contingencies and Agreements Schedule of Minimum Contractual Obligation Due (Details) - Electricity and Natural Gas | Dec. 31, 2023 USD ($) |
Long-term Purchase Commitment [Line Items] | |
2020 | $ 1,381,722 |
2021 | 1,381,722 |
2022 | 1,381,722 |
2023 | 1,381,722 |
2024 | 1,020,536 |
thereafter | $ 92,400 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Renewable Products Marketing Group, LLC (RPMG) | |||
Related Party Transaction [Line Items] | |||
Purchases from related parties | $ 2,233,000 | $ 1,964,000 | $ 2,139,000 |
Board of Managers Members | |||
Related Party Transaction [Line Items] | |||
Purchase Commitment, Remaining Minimum Amount Committed | $ 0 | $ 0 |
Quarterly Financial Reporting_3
Quarterly Financial Reporting (Unaudited) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2023 | Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Quarterly Financial Data [Abstract] | |||||||||||||||
Total revenues | $ 61,504,595 | $ 66,916,014 | $ 74,179,247 | $ 77,841,106 | $ 68,466,005 | $ 74,210,499 | $ 75,437,299 | $ 64,450,894 | $ 82,341,329 | $ 63,794,494 | $ 64,238,127 | $ 48,615,653 | $ 280,440,962 | $ 282,564,697 | $ 258,989,603 |
Gross profit | 11,707,329 | 14,277,361 | 5,831,008 | 3,898,593 | 7,923,409 | 7,401,848 | 8,835,660 | 2,692,799 | 26,247,600 | 9,041,115 | 9,468,054 | 6,957,219 | 35,714,291 | 26,853,716 | 51,713,988 |
Income from operations | 9,884,316 | 13,022,025 | 4,527,864 | 2,447,091 | 6,637,150 | 6,133,380 | 7,683,645 | 1,444,920 | 24,593,778 | 7,791,872 | 8,191,959 | 5,706,085 | 29,881,296 | 21,899,095 | 46,283,694 |
Net income | 14,220,779 | 16,114,768 | 8,628,786 | 3,417,060 | 8,004,092 | 6,509,692 | 11,122,974 | 1,665,199 | 31,679,547 | 8,812,557 | 10,058,652 | 6,535,530 | 42,381,393 | 27,301,957 | 57,086,286 |
Net Income (Loss) Available to Common Stockholders, Diluted | 0.48 | 0.54 | 0.29 | 0.12 | 0.26 | 0.22 | 0.38 | 0.06 | 1.07 | 0.30 | 0.34 | 0.22 | 1.43 | 0.92 | 1.93 |
Net Income (Loss) Available to Common Stockholders, Basic | $ 0.48 | $ 0.54 | $ 0.29 | $ 0.12 | $ 0.26 | $ 0.22 | $ 0.38 | $ 0.06 | $ 1.07 | $ 0.30 | $ 0.34 | $ 0.22 | $ 1.43 | $ 0.92 | $ 1.93 |
Segment Reporting (Details)
Segment Reporting (Details) | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2023 USD ($) | Sep. 30, 2023 USD ($) | Jun. 30, 2023 USD ($) | Mar. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Sep. 30, 2022 USD ($) | Jun. 30, 2022 USD ($) | Mar. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Sep. 30, 2021 USD ($) | Jun. 30, 2021 USD ($) | Mar. 31, 2021 USD ($) | Dec. 31, 2023 USD ($) company | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Segment Reporting [Abstract] | |||||||||||||||
Number of Operating Segments | company | 2 | ||||||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||||||||
REVENUES | $ 61,504,595 | $ 66,916,014 | $ 74,179,247 | $ 77,841,106 | $ 68,466,005 | $ 74,210,499 | $ 75,437,299 | $ 64,450,894 | $ 82,341,329 | $ 63,794,494 | $ 64,238,127 | $ 48,615,653 | $ 280,440,962 | $ 282,564,697 | $ 258,989,603 |
Gross profit | 11,707,329 | 14,277,361 | 5,831,008 | 3,898,593 | 7,923,409 | 7,401,848 | 8,835,660 | 2,692,799 | 26,247,600 | 9,041,115 | 9,468,054 | 6,957,219 | 35,714,291 | 26,853,716 | 51,713,988 |
Income from operations | 9,884,316 | 13,022,025 | 4,527,864 | 2,447,091 | 6,637,150 | 6,133,380 | 7,683,645 | 1,444,920 | 24,593,778 | 7,791,872 | 8,191,959 | 5,706,085 | 29,881,296 | 21,899,095 | 46,283,694 |
Interest Income, Other | 506,435 | 159,395 | 13,361 | ||||||||||||
Interest Expense | 212,532 | 90,881 | 727,452 | ||||||||||||
Depreciation | 5,859,683 | 5,060,975 | 5,396,440 | ||||||||||||
Nonoperating Income (Expense) | 12,500,097 | 5,402,862 | 10,802,592 | ||||||||||||
Equity in net income of investments | 9,105,895 | 3,703,767 | 10,169,606 | ||||||||||||
Net Income | 14,220,779 | $ 16,114,768 | $ 8,628,786 | $ 3,417,060 | 8,004,092 | $ 6,509,692 | $ 11,122,974 | $ 1,665,199 | $ 31,679,547 | $ 8,812,557 | $ 10,058,652 | $ 6,535,530 | 42,381,393 | 27,301,957 | 57,086,286 |
Investment Income, Investment Expense | 1,500,166 | 9,943,710 | 2,061,972 | ||||||||||||
Segment Reporting, Asset Reconciling Item [Line Items] | |||||||||||||||
Assets | 193,384,154 | 156,406,527 | 193,384,154 | 156,406,527 | |||||||||||
Equity Method Investment, Underlying Equity in Net Assets | 55,233,080 | 17,691,011 | 55,233,080 | 17,691,011 | |||||||||||
Investment Income, Investment Expense | 1,500,166 | 9,943,710 | 2,061,972 | ||||||||||||
Guardian Hankinson, LLC | |||||||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||||||||
REVENUES | 437,055,386 | 468,904,462 | 442,502,900 | ||||||||||||
Gross profit | 54,376,669 | 20,899,414 | 68,569,989 | ||||||||||||
Equity in net income of investments | 49,123,365 | 22,559,896 | 71,815,190 | ||||||||||||
Dakota Ethanol | |||||||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||||||||
Net Income | 42,381,393 | 27,301,957 | 57,086,286 | ||||||||||||
Production | |||||||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||||||||
REVENUES | 280,440,962 | 282,564,697 | 258,989,603 | ||||||||||||
Gross profit | 35,714,291 | 26,853,716 | 51,713,988 | ||||||||||||
Interest Income, Other | 506,435 | 159,395 | 13,361 | ||||||||||||
Interest Expense | 212,532 | 90,881 | 727,452 | ||||||||||||
Depreciation | 5,859,683 | 5,060,975 | 5,396,440 | ||||||||||||
Net Income | 42,381,393 | 27,301,957 | 57,086,286 | ||||||||||||
Investment Income, Investment Expense | 1,500,166 | 9,943,710 | 2,061,972 | ||||||||||||
Segment Reporting, Asset Reconciling Item [Line Items] | |||||||||||||||
Assets | 193,384,154 | 156,406,527 | 193,384,154 | 156,406,527 | |||||||||||
Equity Method Investment, Underlying Equity in Net Assets | 55,233,080 | 17,691,011 | 55,233,080 | 17,691,011 | |||||||||||
Investment Income, Investment Expense | 1,500,166 | 9,943,710 | 2,061,972 | ||||||||||||
Ethanol Producing Equity Method Investments | |||||||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||||||||
REVENUES | 598,117,394 | 722,085,949 | 650,859,715 | ||||||||||||
Gross profit | 65,244,501 | 47,752,808 | 102,631,701 | ||||||||||||
Interest Income, Other | 427,944 | 99,295 | 39,177 | ||||||||||||
Interest Expense | 3,937,010 | 3,235,797 | 3,293,641 | ||||||||||||
Depreciation | 25,694,763 | 26,372,193 | 26,798,254 | ||||||||||||
Net Income | 70,665,304 | 31,836,172 | 97,010,893 | ||||||||||||
Investment Income, Investment Expense | 14,680,422 | 2,608,185 | 1,780,335 | ||||||||||||
Segment Reporting, Asset Reconciling Item [Line Items] | |||||||||||||||
Assets | 228,609,037 | 239,476,419 | 228,609,037 | 239,476,419 | |||||||||||
Equity Method Investment, Underlying Equity in Net Assets | 5,607,429 | 5,808,086 | 5,607,429 | 5,808,086 | |||||||||||
Investment Income, Investment Expense | 14,680,422 | 2,608,185 | 1,780,335 | ||||||||||||
Other Equity Method Investments | |||||||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||||||||
REVENUES | 14,801,648 | 17,545,070 | 16,262,276 | ||||||||||||
Gross profit | 11,415,551 | 11,794,408 | 10,280,024 | ||||||||||||
Interest Income, Other | 6,068,271 | 2,869,090 | 2,135,470 | ||||||||||||
Interest Expense | 9,256,000 | 5,705,000 | 3,082,000 | ||||||||||||
Depreciation | 176,144 | 167,004 | 204,745 | ||||||||||||
Net Income | 7,491,308 | 5,397,812 | 5,538,295 | ||||||||||||
Investment Income, Investment Expense | 0 | 128,442 | 0 | ||||||||||||
Segment Reporting, Asset Reconciling Item [Line Items] | |||||||||||||||
Assets | 299,041,128 | 296,653,249 | 299,041,128 | 296,653,249 | |||||||||||
Equity Method Investment, Underlying Equity in Net Assets | 226,052 | 214,342 | 226,052 | 214,342 | |||||||||||
Investment Income, Investment Expense | 0 | 128,442 | 0 | ||||||||||||
Combined Segment | |||||||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||||||||
REVENUES | 893,360,004 | 1,022,195,716 | 926,111,594 | ||||||||||||
Gross profit | 112,374,343 | 86,400,932 | 164,625,713 | ||||||||||||
Interest Income, Other | 7,002,650 | 3,127,780 | 2,188,008 | ||||||||||||
Interest Expense | 13,405,542 | 9,031,678 | 7,103,093 | ||||||||||||
Depreciation | 31,730,590 | 31,600,172 | 32,399,439 | ||||||||||||
Net Income | 120,538,005 | 64,535,941 | 159,635,474 | ||||||||||||
Investment Income, Investment Expense | 16,180,588 | 12,680,337 | 3,842,307 | ||||||||||||
Segment Reporting, Asset Reconciling Item [Line Items] | |||||||||||||||
Assets | 721,034,319 | 692,536,195 | 721,034,319 | 692,536,195 | |||||||||||
Equity Method Investment, Underlying Equity in Net Assets | 61,066,561 | 23,713,439 | 61,066,561 | 23,713,439 | |||||||||||
Investment Income, Investment Expense | 16,180,588 | 12,680,337 | 3,842,307 | ||||||||||||
Non-production members | |||||||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||||||||
REVENUES | (612,919,042) | (739,631,019) | (667,121,991) | ||||||||||||
Gross profit | (76,660,052) | (59,547,216) | (112,911,725) | ||||||||||||
Interest Income, Other | (6,496,215) | (2,968,385) | (2,174,647) | ||||||||||||
Interest Expense | (13,193,010) | (8,940,797) | (6,375,641) | ||||||||||||
Depreciation | (25,870,907) | (26,539,197) | (27,002,999) | ||||||||||||
Net Income | (78,156,612) | (37,233,984) | (102,549,188) | ||||||||||||
Investment Income, Investment Expense | (14,680,422) | (2,736,627) | (1,780,335) | ||||||||||||
Segment Reporting, Asset Reconciling Item [Line Items] | |||||||||||||||
Assets | (527,650,165) | (536,129,668) | (527,650,165) | (536,129,668) | |||||||||||
Equity Method Investment, Underlying Equity in Net Assets | $ (5,833,481) | $ (6,022,428) | (5,833,481) | (6,022,428) | |||||||||||
Investment Income, Investment Expense | $ (14,680,422) | $ (2,736,627) | $ (1,780,335) |
SEC Schedule, Article 12-04, _3
SEC Schedule, Article 12-04, Condensed Financial Information of Registrant (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||||||||||||
Dec. 31, 2023 | Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Condensed Income Statements, Captions [Line Items] | ||||||||||||||||
Net Income | $ 14,220,779 | $ 16,114,768 | $ 8,628,786 | $ 3,417,060 | $ 8,004,092 | $ 6,509,692 | $ 11,122,974 | $ 1,665,199 | $ 31,679,547 | $ 8,812,557 | $ 10,058,652 | $ 6,535,530 | $ 42,381,393 | $ 27,301,957 | $ 57,086,286 | |
Nonoperating Income (Expense) | 12,500,097 | 5,402,862 | 10,802,592 | |||||||||||||
Interest and other income | 3,606,734 | 1,789,976 | 1,360,438 | |||||||||||||
Equity in net income of investments | 9,105,895 | 3,703,767 | 10,169,606 | |||||||||||||
Income from operations | 9,884,316 | 13,022,025 | 4,527,864 | 2,447,091 | 6,637,150 | 6,133,380 | 7,683,645 | 1,444,920 | 24,593,778 | 7,791,872 | 8,191,959 | 5,706,085 | 29,881,296 | 21,899,095 | 46,283,694 | |
OPERATING EXPENSES | 5,832,995 | 4,954,621 | 5,430,294 | |||||||||||||
Condensed Balance Sheet Statements, Captions [Line Items] | ||||||||||||||||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 37,329,032 | 27,004,205 | 37,995,310 | 37,329,032 | 27,004,205 | 37,995,310 | $ 18,637,811 | |||||||||
Assets, Current | 61,486,747 | 59,455,069 | 61,486,747 | 59,455,069 | ||||||||||||
Goodwill | 10,395,766 | 10,395,766 | 10,395,766 | 10,395,766 | ||||||||||||
Total other assets | 73,066,424 | 33,470,087 | 73,066,424 | 33,470,087 | ||||||||||||
TOTAL ASSETS | 193,384,154 | 156,406,527 | 193,384,154 | 156,406,527 | ||||||||||||
Outstanding checks in excess of bank balance | 2,670,403 | 4,200,281 | 2,670,403 | 4,200,281 | ||||||||||||
Liabilities, Current | 37,989,725 | 45,460,292 | 37,989,725 | 45,460,292 | ||||||||||||
Liabilities, Noncurrent | 20,001,000 | 2,998,229 | 20,001,000 | 2,998,229 | ||||||||||||
Stockholders' Equity Attributable to Parent | 135,393,429 | 107,948,006 | 113,468,865 | 135,393,429 | 107,948,006 | 113,468,865 | 65,268,579 | |||||||||
TOTAL LIABILITIES AND MEMBERS' EQUITY | 193,384,154 | 156,406,527 | 193,384,154 | 156,406,527 | ||||||||||||
Condensed Cash Flow Statements, Captions [Line Items] | ||||||||||||||||
Net Income | 14,220,779 | $ 16,114,768 | $ 8,628,786 | $ 3,417,060 | 8,004,092 | $ 6,509,692 | $ 11,122,974 | $ 1,665,199 | 31,679,547 | $ 8,812,557 | $ 10,058,652 | $ 6,535,530 | 42,381,393 | 27,301,957 | 57,086,286 | |
Accounts payable | (5,130,669) | 12,646,359 | 7,328,901 | |||||||||||||
Prepaid expenses | (98,380) | (131,621) | (55,718) | |||||||||||||
Distributions in excess of earnings (earnings in excess of distributions) from investments | 6,657,556 | 3,301,233 | (3,544,606) | |||||||||||||
Increase (Decrease) in Accounts Receivable | 3,208,797 | 1,024,414 | (309,324) | |||||||||||||
Net Cash Provided by (Used in) Operating Activities | 60,078,466 | 36,623,827 | 59,720,664 | |||||||||||||
Net Cash Provided by (Used in) Investing Activities | (49,255,790) | (15,765,113) | (2,385,841) | |||||||||||||
Outstanding checks in excess of bank balance | 2,670,403 | 4,200,281 | 2,670,403 | 4,200,281 | ||||||||||||
Distributions | (14,935,970) | (32,822,816) | (8,886,000) | |||||||||||||
Net Cash Provided by (Used in) Financing Activities | (497,849) | (31,849,819) | (37,977,324) | |||||||||||||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect | 10,324,827 | (10,991,105) | 19,357,499 | |||||||||||||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 37,329,032 | 27,004,205 | $ 37,995,310 | 37,329,032 | 27,004,205 | 37,995,310 | $ 18,637,811 | |||||||||
Dakota Ethanol | ||||||||||||||||
Condensed Income Statements, Captions [Line Items] | ||||||||||||||||
Nonoperating Income (Expense) | 8,642,452 | 3,372,522 | 9,803,615 | |||||||||||||
Interest and other income | 12,549 | 35,219 | 7,112 | |||||||||||||
Equity in net income of investments | 8,629,903 | 3,337,303 | 9,796,503 | |||||||||||||
Income from operations | 33,738,941 | 23,929,435 | 47,282,671 | |||||||||||||
OPERATING EXPENSES | 119,948 | 55,829 | 83,659 | |||||||||||||
Income (Loss) from Subsidiaries, Net of Tax | 33,858,889 | 23,985,264 | 47,366,330 | |||||||||||||
Condensed Balance Sheet Statements, Captions [Line Items] | ||||||||||||||||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 92,223 | 114,718 | 92,223 | 114,718 | ||||||||||||
Prepaid Expense | 4,700 | 4,700 | 4,700 | 4,700 | ||||||||||||
Assets, Current | 96,923 | 119,418 | 96,923 | 119,418 | ||||||||||||
Goodwill | 10,395,766 | 10,395,766 | 10,395,766 | 10,395,766 | ||||||||||||
Investments | 72,201,447 | 82,253,625 | 72,201,447 | 82,253,625 | ||||||||||||
Total other assets | 135,304,353 | 107,838,188 | 135,304,353 | 107,838,188 | ||||||||||||
TOTAL ASSETS | 135,401,276 | 107,957,606 | 135,401,276 | 107,957,606 | ||||||||||||
Outstanding checks in excess of bank balance | 7,847 | 0 | 7,847 | 0 | ||||||||||||
Accounts Payable | 0 | 9,600 | 0 | 9,600 | ||||||||||||
Liabilities, Current | 7,847 | 9,600 | 7,847 | 9,600 | ||||||||||||
Liabilities, Noncurrent | 0 | 0 | 0 | 0 | ||||||||||||
Stockholders' Equity Attributable to Parent | 135,393,429 | 107,948,006 | 135,393,429 | 107,948,006 | ||||||||||||
TOTAL LIABILITIES AND MEMBERS' EQUITY | 135,401,276 | 107,957,606 | 135,401,276 | 107,957,606 | ||||||||||||
Condensed Cash Flow Statements, Captions [Line Items] | ||||||||||||||||
Outstanding checks in excess of bank balance | 7,847 | 0 | 7,847 | 0 | ||||||||||||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 92,223 | 114,718 | 92,223 | 114,718 | ||||||||||||
Income (Loss) from Subsidiaries, Net of Tax | 33,858,889 | 23,985,264 | $ 47,366,330 | |||||||||||||
Other Investments Combined | ||||||||||||||||
Condensed Balance Sheet Statements, Captions [Line Items] | ||||||||||||||||
Other Investments | $ 52,707,140 | $ 15,188,797 | $ 52,707,140 | $ 15,188,797 |
Parent Company Financials (Deta
Parent Company Financials (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||||||||||||
Dec. 31, 2023 | Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Condensed Financial Statements, Captions [Line Items] | ||||||||||||||||
Net Cash Provided by (Used in) Investing Activities | $ (49,255,790) | $ (15,765,113) | $ (2,385,841) | |||||||||||||
Outstanding checks in excess of bank balance | $ 2,670,403 | $ 4,200,281 | 2,670,403 | 4,200,281 | ||||||||||||
Distributions | (14,935,970) | (32,822,816) | (8,886,000) | |||||||||||||
Net Cash Provided by (Used in) Financing Activities | (497,849) | (31,849,819) | (37,977,324) | |||||||||||||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect | 10,324,827 | (10,991,105) | 19,357,499 | |||||||||||||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 37,329,032 | 27,004,205 | $ 37,995,310 | 37,329,032 | 27,004,205 | 37,995,310 | $ 18,637,811 | |||||||||
Net Income | 14,220,779 | $ 16,114,768 | $ 8,628,786 | $ 3,417,060 | 8,004,092 | $ 6,509,692 | $ 11,122,974 | $ 1,665,199 | 31,679,547 | $ 8,812,557 | $ 10,058,652 | $ 6,535,530 | 42,381,393 | 27,301,957 | 57,086,286 | |
Distributions in excess of earnings (earnings in excess of distributions) from investments | 6,657,556 | 3,301,233 | (3,544,606) | |||||||||||||
Increase (Decrease) in Accounts Receivable | 3,208,797 | 1,024,414 | (309,324) | |||||||||||||
Prepaid expenses | 98,380 | 131,621 | 55,718 | |||||||||||||
Accounts payable | (5,130,669) | 12,646,359 | 7,328,901 | |||||||||||||
Net Cash Provided by (Used in) Operating Activities | 60,078,466 | 36,623,827 | 59,720,664 | |||||||||||||
Dakota Ethanol | ||||||||||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||||||||||
increase (decrease) in investments | (44,199,624) | 0 | 0 | |||||||||||||
Net Cash Provided by (Used in) Investing Activities | (313,185) | 23,602,000 | 5,050,744 | |||||||||||||
Outstanding checks in excess of bank balance | 7,847 | 0 | 0 | 7,847 | 0 | 0 | ||||||||||
Distributions | 123 | (32,822,816) | (8,886,000) | |||||||||||||
Net Cash Provided by (Used in) Financing Activities | 0 | (32,822,816) | (8,886,000) | |||||||||||||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect | 14,905,628 | (6,526) | 62,739 | |||||||||||||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 15,020,346 | 114,718 | $ 121,244 | 15,020,346 | 114,718 | 121,244 | $ 58,505 | |||||||||
Net Income | 42,381,393 | 27,301,957 | 57,086,286 | |||||||||||||
Distributions in excess of earnings (earnings in excess of distributions) from investments | 6,681,282 | 5,892,697 | (3,346,503) | |||||||||||||
Income (Loss) from Equity Method Investments, Net of Dividends or Distributions | (33,834,262) | (23,985,264) | (47,366,330) | |||||||||||||
Increase (Decrease) in Accounts Receivable | 0 | 0 | (2,500,000) | |||||||||||||
Prepaid expenses | 0 | (4,700) | 24,542 | |||||||||||||
Accounts payable | (9,600) | 9,600 | 0 | |||||||||||||
Net Cash Provided by (Used in) Operating Activities | 15,218,813 | 9,214,290 | 3,897,995 | |||||||||||||
Proceeds from Equity Method Investment, Distribution | 43,886,439 | 23,602,000 | $ 5,050,744 | |||||||||||||
Dakota Ethanol | ||||||||||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||||||||||
Outstanding checks in excess of bank balance | 7,847 | 0 | 7,847 | 0 | ||||||||||||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | $ 92,223 | $ 114,718 | $ 92,223 | $ 114,718 | ||||||||||||
Farm Credit Services of America | Parent Company | ||||||||||||||||
Condensed Financial Information Disclosure [Abstract] | ||||||||||||||||
Debt Instrument, Restrictive Covenants | $20,000,000 | |||||||||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||||||||||
Debt Instrument, Restrictive Covenants | $20,000,000 |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Event - USD ($) | 1 Months Ended | |
Mar. 01, 2024 | Jan. 31, 2024 | |
Subsequent Event [Line Items] | ||
Distribution Made to Limited Liability Company (LLC) Member, Cash Distributions Declared | $ 8,886,000 | |
Distribution Declared, Per Unit | $ 0.3 | |
Corn Oil Extraction and Distillation Equipment | ||
Subsequent Event [Line Items] | ||
design and construction commitment | $ 11.8 |