South Dakota Soybean Processors (SDSYA) 10-K 22 Mar 17 2016 FY Annual report Financial data

Document And Entity Information

Document And Entity Information - USD ($)	12 Months Ended
	Dec. 31, 2016	Mar. 22, 2017	Jun. 30, 2016
Entity Registrant Name	SOUTH DAKOTA SOYBEAN PROCESSORS LLC
Entity Central Index Key	1,163,609
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Trading Symbol	sdsp
Entity Common Stock, Shares Outstanding		30,419,000
Document Type	10-K
Amendment Flag	false
Document Period End Date	Dec. 31, 2016
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2,016
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Public Float			$ 111,535,313

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($)	Dec. 31, 2016	Dec. 31, 2015
Assets
Cash and cash equivalents	$ 11,654,648	$ 18,392,462
Trade accounts receivable, less allowance for uncollectible accounts (2016 - $0; 2015 - $495,000)	20,352,581	21,396,739
Inventories	32,393,421	26,829,196
Margin deposits	2,400,892	7,467,409
Prepaid expenses	1,456,642	1,676,576
Notes, Loans and Financing Receivable, Gross, Noncurrent	2,000,000	0
Total current assets	70,258,184	75,762,382
Property and equipment	89,832,688	83,083,687
Less accumulated depreciation	(45,081,548)	(42,162,610)
Total property and equipment, net	44,751,140	40,921,077
Other assets
Investments in cooperatives	6,231,233	6,225,008
Other intangible assets, net	1,783	6,314
Total other assets	6,233,016	6,231,322
Total assets	121,242,340	122,914,781
Liabilities and Members' Equity
Excess of outstanding checks over bank balance	(6,643,226)	(7,485,907)
Current maturities of long-term debt	59,558	58,344
Accounts payable	1,456,802	1,471,367
Accrued commodity purchases	35,688,152	35,059,642
Accrued expenses	2,380,947	2,775,993
Accrued interest	201,465	229,805
Deferred liabilities - current	2,033,445	538,275
Total current liabilities	48,463,595	47,619,333
Long-term liabilities
Long-term debt, less current maturities	725,818	787,096
Commitments and contingencies (Notes 8, 9, 11, 15 & 17)
Members' equity
Total liabilities and members' equity	121,242,340	122,914,781
Capital Unit, Class A [Member]
Members' equity
Members' equity Class A Units, no par value, 30,419,000 units issued and outstanding	$ 72,052,927	$ 74,508,352

Consolidated Balance Sheets _Pa

Consolidated Balance Sheets [Parenthetical] - Capital Unit, Class A [Member] - shares	Dec. 31, 2016	Dec. 31, 2015
Common stock, shares issued	30,419,000	30,419,000
Common stock, shares outstanding	30,419,000	30,419,000

Consolidated Statements of Oper

Consolidated Statements of Operations - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Income Statement [Abstract]
Net revenues	$ 377,931,693	$ 367,560,428	$ 434,842,176
Cost of revenues:
Cost of product sold	304,374,614	287,339,317	362,027,780
Production	24,208,809	22,817,827	20,754,231
Freight and rail	34,554,001	31,827,183	29,387,801
Brokerage fees	692,185	674,337	685,549
Total cost of revenues	363,829,609	342,658,664	412,855,361
Gross profit	14,102,084	24,901,764	21,986,815
Operating expenses:
Administration	3,445,978	3,571,570	4,338,147
Operating income	10,656,106	21,330,194	17,648,668
Other income (expense):
Interest expense	(409,331)	(546,648)	(1,076,620)
Other non-operating income	1,479,226	1,353,050	1,930,428
Patronage dividend income	860,846	815,810	1,564,032
Total other income (expense)	1,930,741	1,622,212	2,417,840
Income before income taxes	12,586,847	22,952,406	20,066,508
Income tax (expense), net	6,209	(570)	(1,870)
Net income	$ 12,593,056	$ 22,951,836	$ 20,064,638
Basic and diluted earnings (loss) per capital unit:
Net income (loss), in dollars per share	$ 0.41	$ 0.75	$ 0.66
Weighted average number of capital units outstanding for calculation of basic and diluted earnings (loss) per capital unit	30,419,000	30,419,000	30,419,000

Consolidated Statements of Chan

Consolidated Statements of Changes in Members' Equity - USD ($)	Total	Capital Unit, Class A [Member]
Member's Equity at Dec. 31, 2013		$ 46,541,671
Balances (in Units) at Dec. 31, 2013		30,419,000
Net income (loss)	$ 20,064,638	$ 20,064,638
Distribution to members	(1,312)
Balance, December 31, 2012 at Dec. 31, 2014		$ 66,604,997
Balances (in Units) at Dec. 31, 2014		30,419,000
Net income (loss)	22,951,836	$ 22,951,836
Distribution to members		(15,048,481)
Balance, December 31, 2012 at Dec. 31, 2015		$ 74,508,352
Balances (in Units) at Dec. 31, 2015		30,419,000
Net income (loss)	$ 12,593,056	$ 12,593,056
Distribution to members		(15,048,481)
Balance, December 31, 2012 at Dec. 31, 2016		$ 72,052,927
Balances (in Units) at Dec. 31, 2016		30,419,000

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Operating activities
Net income	$ 12,593,056	$ 22,951,836	$ 20,064,638
Charges and credits to net income not affecting cash:
Depreciation and amortization	3,234,787	2,902,546	2,188,890
(Gain) loss on sales of property and equipment	(126,387)	127,837	(19,401)
Non-cash patronage dividends	(6,225)	0	(896,799)
Change in current operating assets and liabilities	2,452,113	(1,571,609)	22,065,294
Net cash from operating activities of continuing operations	18,147,344	24,410,610	43,402,622
Net cash from operating activities of discontinued operations	0	0	1,500
Net cash from operating activities	18,147,344	24,410,610	43,404,122
Investing activities
Retirement of patronage dividends	0	611,453	124,819
Payments to Acquire Notes Receivable	(2,000,000)	0	0
Decrease in member loans	0	0	145,707
Proceeds from sales of property and equipment	131,400	29,600	52,500
Purchase of property and equipment	(7,065,332)	(5,225,636)	(10,981,737)
Net cash (used for) investing activities of continued operations	(8,933,932)	(4,584,583)	(10,658,711)
Net cash from investing activities of discontinued operations	0	0	3,500
Net cash (used for) investing activities	(8,933,932)	(4,584,583)	(10,655,211)
Financing activities
Change in excess of outstanding checks over bank balances	(842,681)	2,933,754	(7,817,712)
Distributions to members	(15,048,481)	(15,048,481)	(11,001,312)
Payments of Debt Issuance Costs	0	(6,500)	0
Proceeds from long-term debt	87,096,560	68,154,464	20,103,229
Principal payments on long-term debt	(87,156,624)	(68,210,748)	(23,289,220)
Net cash (used for) financing activities	(15,951,226)	(12,177,511)	(22,005,015)
Net change in cash and cash equivalents	(6,737,814)	7,648,516	10,743,896
Cash and cash equivalents, beginning of year	18,392,462	10,743,946	50
Cash and cash equivalents, end of year	11,654,648	18,392,462	10,743,946
Supplemental disclosures of cash flow information
Interest	437,671	676,739	1,044,151
Income taxes	$ 0	$ 0	$ 0

Principal Activity and Signific

Principal Activity and Significant Accounting Policies	12 Months Ended
	Dec. 31, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Principal Activity and Significant Accounting Policies	Principal Activity and Significant Accounting Policies Organization South Dakota Soybean Processors, LLC (the “Company” or “LLC”) processes and sells soybean products, such as soybean meal, oil, and hulls. The Company’s principal operations are located where we have plants in Volga and Miller, South Dakota. Cash and cash equivalents The Company considers all highly liquid investment instruments with original maturities of three months or less at the time of acquisition to be cash equivalents. Inventories Finished goods (soybean meal, oil, refined oil, and hulls) and raw materials (soybeans) are valued at estimated market value. This accounting policy is in accordance with the guidelines described in Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) 905, Agriculture (formerly AICPA Statement of Position No. 85-3, Accounting by Agricultural Producers and Agricultural Cooperatives). Supplies and other inventories are stated at the lower of cost, determined by the first-in, first-out method, or market. Investments Investments in cooperatives are carried at cost plus the amount of patronage earnings allocated to the Company, less any cash distributions received. Property and equipment Property and equipment is stated at cost. Expenditures for renewals and improvements that significantly add to the productive capacity or extend the useful life of an asset are capitalized. Expenditures for maintenance and repairs are charged to expense when incurred. When depreciable properties are sold or retired, the cost and accumulated depreciation are eliminated from the accounts and the resultant gain or loss is reflected in income. Depreciation is provided for over the estimated useful lives of the individual assets using the straight-line method. The range of the estimated useful lives used in the computation of depreciation is as follows: Building and improvements 10-39 years Equipment and furnishings 3-15 years The Company reviews its long-lived assets for impairment whenever events indicate that the carrying amount of the asset may not be recoverable. If impairment indicators are present and the future cash flows is less than the carrying amount of the assets, values are reduced to the estimated fair value of those assets. Deferred revenue The Company recognizes revenues as earned. Amounts received in advance of the period in which service is rendered are recorded as a liability under “Deferred liabilities”. Use of estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Revenue Recognition Revenue is recognized when the title to the related products is transferred to the customer. When a sales contract has delivery terms of ‘FOB Shipping Point’, revenue is recognized when the products are shipped. For those sales contracts with delivery terms of ‘FOB Destination’, revenue is not recognized until the products are delivered to the agreed-upon location. Revenues are presented net of discounts and sales allowances. Freight The Company presents all amounts billed to the customer for freight as a component of net revenue. Costs incurred for freight are reported as a component of cost of revenue. The Company’s “Shipping and Handling Costs” policy is in accordance with ASC 605, Revenue Recognition. Advertising costs Advertising and promotion costs are expensed as incurred. The Company incurred $40,000 , $29,000 , and $28,000 , of advertising costs in the years ended December 31, 2016 , 2015 , and 2014 , respectively. Environmental remediation It is management’s opinion that the amount of any potential environmental remediation costs will not be material to the Company’s financial condition, results of operations, or cash flows; therefore, no accrual has been recorded. Accounting for derivative instruments and hedging activities All of the Company’s derivatives are designated as non-hedge derivatives. The futures and options contracts used by the Company are discussed below. Although the contracts may be effective economic hedges of specified risks, they are not designated as, nor accounted for, as hedging instruments. The Company, as part of its trading activity, uses futures and option contracts offered through regulated commodity exchanges to reduce risk. The Company is exposed to risk of loss in the market value of inventories. To reduce that risk, the Company generally takes opposite and offsetting positions using futures contracts or options. Unrealized gains and losses on futures and options contracts used to hedge soybean, oil and meal inventories, as well as foreign exchange rates, are recognized as a component of net proceeds for financial reporting. Inventories are recorded at estimated market value. Consequently, unrealized gains and losses on derivative contracts are offset by unrealized gains and losses on inventories and reflected in current earnings. Earnings per capital unit Earnings per capital unit are calculated based on the weighted average number of capital units outstanding. The Company has no other capital units or other member equity instruments that are dilutive for purposes of calculating earnings per capital unit. Income taxes As a limited liability company, the Company’s taxable income or loss is allocated to members in accordance with their respective percentage ownership. Therefore, no provision or liability for income taxes has been included in the financial statements. The Company has evaluated the provisions of FASB ASC 740-10 for uncertain tax positions. As of December 31, 2016 and 2015 , the unrecognized tax benefit accrual was zero. The Company will recognize future accrued interest and penalties related to unrecognized tax benefits in income tax expense if incurred. As of December 31, 2016 , the book value of the Company’s net assets exceeds the tax basis of those assets by approximately $1.8 million . The Company files income tax returns in the U.S. federal jurisdiction and various state jurisdictions. We are no longer subject to income tax examinations by U.S. federal and state tax authorities for years prior to 2013. We currently have no tax years under examination. Recent accounting pronouncements The Company has reviewed all recently issued, but not yet effective, accounting pronouncements. The Financial Accounting Standards Board issued Accounting Standards Update No. 2014-09 (Revenue from Contracts with Customers), which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The ASU will replace most existing revenue recognition guidance in U.S. GAAP. The ASU is effective for reporting periods beginning after December 15, 2017. Early adoption is permitted. The Company is in the initial stages of evaluating the effect of the standard on its financial statements and continues to evaluate the available transition methods. However, based on their initial evaluation, the Company does not expect there to be material changes to their current Revenue Recognition policies due to the non-complex contracts with their customers. The Company does not plan to adopt the standard until the interim period ended March 31, 2018. The FASB issued ASU No. 2015-11 (Inventory: Simplifying the Measurement of Inventory), which requires an entity to measure inventory within the scope at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonable predictable costs of completion, disposal and transportation. This ASU is effective for annual reporting periods beginning after December 15, 2016. Early adoption is permitted. Management is currently evaluating the impact of adopting this standard but does not anticipate a material impact to its financial statements. FASB issued ASU No. 2016-02 (Leases). The amendments in this ASU revise the accounting related to lessee accounting. Under the new guidance, lessees will be required to recognize a lease liability and a right-of-use asset for all leases. The new lease guidance also simplified the accounting for sale and leaseback transactions primarily because lessees must recognize lease assets and lease liabilities. The amendments in this ASU are effective for annual reporting periods beginning on January 1, 2019 and should be applied through a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. Early adoption is permitted. The Company is in the initial stages of evaluating the effect of the standard on their financial statements and continues to evaluate the available transition methods. However, based on their initial evaluation, they do expect there to be material changes to both their current and long-term lease liabilities and fixed assets, because their existing classification of their rail car leases as operating leases, as further described in Note 11, will no longer be available to use after adoption of this new standard. The Company does not plan to adopt the standard until the interim period ended March 31, 2019. FASB issued ASU No. 2016-15 (Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments). The ASU, which addresses eight specific classification issues, is intended to reduce diversity in current practice regarding the manner in which certain cash receipts and cash payments are presented and classified in the cash flow statement. The standard update is effective for fiscal years beginning after December 31, 2017 and interim periods within those fiscal years. Early adoption is permitted. Management is currently evaluating the impact of adopting this update but does not anticipate a material impact to its financial statements.

Accounts Receivable

Accounts Receivable	12 Months Ended
	Dec. 31, 2016
Receivables [Abstract]
Accounts Receivables	Accounts Receivable Accounts receivable are considered past due when payments are not received on a timely basis in accordance with the Company’s credit terms, which is generally 30 days from invoice date. Accounts considered uncollectible are written off. The Company’s estimate of the allowance for doubtful accounts is based on historical experience, its evaluation of the current status of receivables, and unusual circumstances, if any. The following table presents the aging analysis of trade receivables as of December 31, 2016 and 2015 : 2016 2015 Past due: Less than 30 days past due $ 3,537,380 $ 2,750,039 30-59 days past due 109,345 145,276 60-89 days past due — 32,540 Greater than 90 days past due — 776,026 Total past due 3,646,725 3,703,881 Current 16,705,856 18,187,858 Totals $ 20,352,581 $ 21,891,739 The following table provides information regarding the Company’s allowance for doubtful accounts receivable as of December 31, 2016 , 2015 , and 2014 : 2016 2015 2014 Balances, beginning of year $ 495,000 $ — $ — Amounts charged (credited) to costs and expenses 322,065 511,404 1,516,052 Additions (deductions) (817,065 ) (16,404 ) (1,516,052 ) Balances, end of year $ — $ 495,000 $ — In general cash received is applied to the oldest outstanding invoice first, unless payment is for a specified invoice. The Company, on a case by case basis, may charge a late fee of 1 ½% per month on past due receivables.

Inventories

Inventories	12 Months Ended
	Dec. 31, 2016
Inventory Disclosure [Abstract]
Inventories	Inventories The Company’s inventories consist of the following as of December 31: 2016 2015 Finished goods $ 19,740,287 $ 19,583,416 Raw materials 12,406,656 6,984,054 Supplies & miscellaneous 246,478 261,726 Totals $ 32,393,421 $ 26,829,196 Finished goods and raw materials are valued at estimated market value, which approximates net realizable value. In addition, futures and option contracts are marked to market through cost of revenues, with unrealized gains and losses recorded in the above inventory amounts. Supplies and other inventories are stated at the lower of cost, determined by the first-in, first-out method, or market.

Margin Deposits

Margin Deposits	12 Months Ended
	Dec. 31, 2016
Margin Deposits [Abstract]
Margin Deposits	Margin Deposits The Company has margin deposits with a commodity brokerage firm used to acquire futures and option contracts to manage the price volatility risk of soybeans, crude soybean oil and soybean meal. Consistent with its inventory accounting policy, these contracts are recorded at market value. At December 31, 2016 , the Company’s futures contracts all mature within 12 months .

Investments in Cooperatives

Investments in Cooperatives	12 Months Ended
	Dec. 31, 2016
Investments in and Advances to Affiliates, Schedule of Investments [Abstract]
Investments in Cooperatives	Investments in Cooperatives The Company’s investments in cooperatives consist of the following at December 31: 2016 2015 Minnesota Soybean Processors: Common stock and Class A Preferred Shares $ 4,710,159 $ 4,710,159 CoBank 1,521,074 1,514,849 Totals $ 6,231,233 $ 6,225,008

Convertible Notes Receivable

Convertible Notes Receivable	12 Months Ended
	Dec. 31, 2016
Receivables [Abstract]
Convertible Notes Receivable	On January 12, 2016, the Company purchased a secured convertible promissory note from Prairie AquaTech, LLC with a face amount of $750,000 . Interest accrues on the note at the rate of 10% per annum and will be due with the principal on December 31, 2017 , unless the note is converted earlier. On July 17, 2016, August 31, 2016, and November 23, 2016, the Company purchased three additional secured convertible promissory notes from Prairie AquaTech totaling $1,250,000 . Interest accrues on those notes at the rate of 15% per annum and will be due with the principal on December 31, 2017 unless the notes are converted earlier. Prairie AquaTech granted the Company 20% warrant coverage on these two notes. The warrants, which expire on July 15, 2026, have an exercise price of $0.01 per capital unit. The quantity of capital units the Company is entitled to receive upon exercising their option on their warrants is determined by dividing 250,000 by the pre-money valuation of Prairie AquaTech, excluding a company option pool, before its next round of financing. The principal amounts on all three notes and, at the option of the Company, all accrued interest will automatically convert into preferred capital units in Prairie AquaTech when it closes its next preferred equity financing prior to the due date of the notes. The quantity of capital units that the Company is entitled to receive upon such conversion is be determined by dividing the outstanding principal amount and any accrued interest on this note by 11.00 . The notes are secured by substantially all assets including intellectual property.

Property and Equipment

Property and Equipment	12 Months Ended
	Dec. 31, 2016
Property, Plant and Equipment [Abstract]
Property and Equipment	Property and Equipment The following is a summary of property and equipment at December 31: 2016 2015 Cost Accumulated Depreciation Net Net Land $ 543,816 $ — $ 543,816 $ 543,816 Land improvements 1,512,308 (286,171 ) 1,226,137 980,439 Buildings and improvements 18,919,718 (7,918,348 ) 11,001,370 10,149,709 Machinery and equipment 64,556,459 (35,810,138 ) 28,746,321 26,979,433 Company vehicles 127,965 (73,452 ) 54,513 76,941 Furniture and fixtures 1,572,634 (993,439 ) 579,195 583,285 Construction in progress 2,599,788 — 2,599,788 1,607,454 Totals $ 89,832,688 $ (45,081,548 ) $ 44,751,140 $ 40,921,077 Depreciation of property and equipment amounts to $3,230,255 , $2,898,014 , and $2,186,958 for the years ended December 31, 2016 , 2015 , and 2014 , respectively.

Notes Payable - Seasonal Loan

Notes Payable - Seasonal Loan	12 Months Ended
	Dec. 31, 2016
Notes Payable Seasonal Loan [Abstract]
Notes Payable - Seasonal Loan	Notes Payable - Seasonal Loan The Company has entered into a revolving credit agreement with CoBank which expires October 1, 2017 . The purpose of the credit agreement is to finance inventory and accounts receivable. Under this agreement, the Company may borrow up to $15 million until April 30, 2017 and $5 million between May 1, 2017 and October 1, 2017. Interest accrues at a variable rate ( 2.98% at December 31, 2016 ). Advances on the revolving credit agreement are secured and limited to qualifying inventory and accounts receivable, net of any accrued commodity purchases. The Company pays a 0.20% annual commitment fee on any funds not borrowed. There were no advances outstanding at December 31, 2016 and 2015 . The remaining available funds to borrow under the terms of the revolving credit agreement are approximately $15,000,000 as of December 31, 2016 .

Long-Term Debt

Long-Term Debt	12 Months Ended
	Dec. 31, 2016
Debt Disclosure [Abstract]
Long-Term Debt	Long-Term Debt 2016 2015 Revolving term loan from CoBank, interest at variable rates (3.23% and 2.88% at December 31, 2016 and 2015, respectively), secured by substantially all property and equipment. Loan matures September 20, 2020. $ — $ — Note payable to Brookings Regional Railroad Authority, due in annual principal and interest installments of $75,500, interest rate at 2.00%, secured by railroad track assets. Note matures June 1, 2020. 785,376 845,440 785,376 845,440 Less current maturities (59,558 ) (58,344 ) Totals $ 725,818 $ 787,096 The Company entered into an agreement as of July 15, 2015 with CoBank to amend and restate its Master Loan Agreement (MLA), which includes both the revolving term and seasonal loans. Under the terms and conditions of the MLA, CoBank agreed to make advances to the Company for up to $10,000,000 on the revolving term loan. The available commitment decreases in scheduled periodic increments of $1,250,000 every six months starting March 20, 2017 until maturity on September 20, 2020 . The Company pays a 0.40% annual commitment fee on any funds not borrowed. There were no advances outstanding of the revolving term loan as of December 31, 2016 and 2015 . The remaining commitments available to borrow on the revolving term loan are $10.0 million as of December 31, 2016 . Under this agreement, the Company is subject to compliance with standard financial covenants and the maintenance of certain financial ratios. The Company was in compliance with all covenants and conditions with CoBank as of December 31, 2016 . Effective March 1, 2013, the State of South Dakota Department of Transportation agreed to loan the Brookings County Regional Railway Authority $964,070 for purposes of making improvements to the railway infrastructure near the Company's soybean processing facility near Volga, South Dakota. In consideration of this secured loan, the Company agreed to provide a guarantee to the State of South Dakota Department of Transportation for the full amount of the loan, plus interest. This guarantee was converted into a direct obligation of the Company's on October 16, 2013, when the Company received the entire loan proceeds and assumed responsibility for paying the annual principal and interest payments. The minimum principal payments on long-term debt obligations are as follows as of December 31, 2016 : For the years ending December 31: 2017 $ 59,558 2018 60,749 2019 61,964 2020 603,105 Total $ 785,376

Employee Benefit Plans

Employee Benefit Plans	12 Months Ended
	Dec. 31, 2016
Compensation and Retirement Disclosure [Abstract]
Employee Benefit Plans	Employee Benefit Plans The Company maintains a Section 401(k) plan for employees who meet the eligibility requirements set forth in the plan documents. The Company matches a percentage of an employee's contributed earnings. The amounts charged to expense under this plan were approximately $157,000 , $157,000 , and $116,000 for the years ended December 31, 2016 , 2015 , and 2014 , respectively. The Company's Board of Managers approved payment of a profit-based incentive bonus to be awarded to eligible employees following the close of each fiscal year. The Board has allocated approximately 4.6% of profits over $2 million to fund this benefit. Individual amounts are based upon criteria determined by a formula that considers current pay, level of responsibility, and impact on profits of each position. The amounts charged to expense under this incentive were approximately $473,000 , $995,000 , and $815,000 for the years ended December 31, 2016 , 2015 , and 2014 , respectively. The Company had a deferred compensation plan for key employees. The plan provided for the Company to pay these employees in five equal annual installments upon retirement. The future payments were discounted at 8% . In February 2015, the Company approved to eliminate this plan and negotiated a settlement with the one remaining qualified employee. The amount recognized as expense (benefit) during the years ended December 31, 2016 , 2015 , and 2014 was $0 , $20,000 , $25,000 , respectively. The Company made payments of approximately $0 , $71,827 , and $11,827 for the years ended December 31, 2016 , 2015 , and 2014 , respectively.

Commitments

Commitments	12 Months Ended
	Dec. 31, 2016
Commitments and Contingencies Disclosure [Abstract]
Commitments	Commitments The Company has operating leases for 250 rail cars from Wells Fargo Rail. The leases require monthly payments of $109,753 . The Company also leases 156 rail cars from Trinity Capital. These leases require monthly payments of $88,074 . The Company also leases 64 rail cars from Flagship Rail Services. This lease requires monthly payments of $27,200 . The Company also leases 15 rail cars from GATX Corporation. This lease requires monthly payments of $10,050 . The Company also leases 30 rail cars from American Railcar Leasing, Inc. This lease requires monthly payments of $30,780 . The leases began between 2000 and 2016 and have terms ranging from 5 - 18 years . Lease expense for all rail cars was $3,112,577 , $2,987,265 , and $2,377,908 for the years ended December 31, 2016 , 2015 , and 2014 , respectively. On September 1, 2011, the Company renewed a Grain Storage and Transportation Agreement with H&I Grain of Hetland, Inc. (“H&I”). This agreement was for the handling, storage and transportation of soybeans to and from the H&I facilities located in DeSmet, Hetland and Arlington, South Dakota, at established rates per bushel. The agreement provided for an annual minimum payment of $200,000 . The agreement expired on August 31, 2014 . Expenses under the agreements with H&I were $0 , $0 , and $404,595 for the years ended December 31, 2016 , 2015 , and 2014 , respectively. The Company also has a number of other operating leases for machinery and equipment. Rental expense under these other operating leases was $101,755 , $128,780 , and $126,662 for the years ended December 31, 2016 , 2015 , and 2014 , respectively. The following is a schedule of future minimum payments required under these operating commitments. Rail Cars Other Total Year ended December 31: 2017 $ 3,025,000 $ 28,000 $ 3,053,000 2018 2,464,000 16,000 2,480,000 2019 2,397,000 10,000 2,407,000 2020 2,158,000 3,000 2,161,000 2021 1,290,000 — 1,290,000 Thereafter 368,000 — 368,000 Totals $ 11,702,000 $ 57,000 $ 11,759,000 As of December 31, 2016 , the Company had unpaid commitments of approximately $5,400,000 for construction and acquisition of property and equipment, all of which is expected to be incurred by October 2017.

Cash Flow Information

Cash Flow Information	12 Months Ended
	Dec. 31, 2016
Cash Flow Information [Abstract]
Cash Flow Information	Cash Flow Information The following is a schedule of changes in assets and liabilities used to determine cash from operating activities: 2016 2015 2014 (Increase) decrease in assets: Trade accounts receivable $ 1,044,158 $ 1,200,113 $ 7,820,461 Inventories (5,564,225 ) 7,370,010 31,110,215 Margin account deposit 5,066,517 (4,917,544 ) (862,685 ) Prepaid expenses 219,934 (220,800 ) 76,101 766,384 3,431,779 38,144,092 Increase (decrease) in liabilities: Accounts payable (14,565 ) 152,529 (610,479 ) Accrued commodity purchases 628,510 (4,688,215 ) (14,925,455 ) Accrued expenses and interest (423,386 ) 7,772 (642,710 ) Deferred liabilities 1,495,170 (475,474 ) 99,846 1,685,729 (5,003,388 ) (16,078,798 ) Totals $ 2,452,113 $ (1,571,609 ) $ 22,065,294

Derivative Instruments and Hedg

Derivative Instruments and Hedging Activities	12 Months Ended
	Dec. 31, 2016
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative Instruments and Hedging Activities	Derivative Instruments and Hedging Activities In the ordinary course of business, the Company enters into contractual arrangements as a means of managing exposure to changes in commodity prices and, occasionally, foreign exchange rates. The Company’s derivative instruments primarily consist of commodity futures, options and forward contracts. Although these contracts may be effective economic hedges of specified risks, they are not designated as, nor accounted for, as hedging instruments. These contracts are recorded on the Company’s balance sheets at fair value as discussed in Note 14, Fair Value. As of December 31, 2016 and 2015 , the value of the Company’s open futures, options and forward contracts was approximately $(1,364,807) and $2,211,112 , respectively. Amounts As of December 31, 2016 Balance Sheet Classification Asset Derivatives Liability Derivatives Derivatives not designated as hedging instruments: Commodity contracts Current Assets $ 3,451,863 $ 4,829,001 Foreign exchange contracts Current Assets 32,794 20,463 Totals $ 3,484,657 $ 4,849,464 Amounts As of December 31, 2015 Balance Sheet Classification Asset Derivatives Liability Derivatives Derivatives not designated as hedging instruments: Commodity contracts Current Assets $ 10,599,610 $ 8,296,932 Foreign exchange contracts Current Assets 75,319 166,885 Totals $ 10,674,929 $ 8,463,817 During the years ended December 31, 2016 , 2015 , and 2014 , net realized and unrealized gains (losses) on derivative transactions were recognized in the statements of operations as follows: Net Gain (Loss) Recognized on Derivative Activities for the Year Ending December 31: 2016 2015 2014 Derivatives not designated as hedging instruments: Commodity contracts $ 5,269,485 $ 3,526,586 $ (1,184,594 ) Foreign exchange contracts 45,517 130,914 (8,573 ) Totals $ 5,315,002 $ 3,657,500 $ (1,193,167 ) The Company recorded gains (losses) of $5,315,002 , $3,657,500 , and $(1,193,167) in cost of goods sold related to its commodity derivative instruments for the years ended December 31, 2016 , 2015 , and 2014 , respectively.

Fair Value of Financial Instrum

Fair Value of Financial Instruments	12 Months Ended
	Dec. 31, 2016
Fair Value Disclosures [Abstract]
Fair Value of Financial Instruments	Fair Value ASC 820, Fair Value Measurements and Disclosures, defines fair value, establishes a comprehensive framework for measuring fair value and expands disclosures which are required about fair value measurements. Specifically, this guidance establishes a hierarchy prioritizing the inputs to valuation techniques, giving the highest priority to quoted prices in active markets for identical assets and liabilities and the lowest priority to unobservable value inputs. The three levels of hierarchy and examples are as follows: • Level 1 – Quoted prices are available in active markets for identical assets or liabilities as of the reported date. The types of assets and liabilities included in Level 1 are highly liquid and actively traded instruments with quoted prices, such as equities listed on the New York Stock Exchange and commodity derivative contracts listed on the Chicago Board of Trade (“CBOT”). • Level 2 – Pricing inputs are other than quoted prices in active markets, but are either directly or indirectly observable as of the reported date. The types of assets and liabilities in Level 2 are typically either comparable to actively traded securities or contracts, or priced with models using highly observable inputs, such as commodity prices using forward future prices. • Level 3 – Significant inputs to pricing that are unobservable as of the reporting date. The types of assets and liabilities included in Level 3 are those with inputs requiring significant management judgment or estimation, such as complex and subjective models and forecasts used to determine the fair value of financial transmission rights. The following tables set forth financial assets and liabilities measured at fair value in the balance sheets and the respective levels to which fair value measurements are classified within the fair value hierarchy as of December 31, 2016 and 2015 : Fair Value as of December 31, 2016 Level 1 Level 2 Level 3 Total Financial assets: Inventory $ (1,377,137 ) $ 33,159,913 $ — $ 31,782,776 Margin deposits $ 2,400,892 $ — $ — $ 2,400,892 Fair Value as of December 31, 2015 Level 1 Level 2 Level 3 Total Financial Assets: Inventory $ 2,302,679 $ 24,000,649 $ — $ 26,303,328 Margin deposits $ 7,467,409 $ — $ — $ 7,467,409 The Company considers the carrying amount of significant classes of financial instruments on the balance sheets, including cash, accounts receivable, notes receivable, and accounts payable, to be reasonable estimates of fair value due to their length or maturity. The fair value of the Company’s long-term debt approximates the carrying value. The interest rates on the long-term debt are similar to rates the Company would be able to obtain currently in the market. The Company enters into various commodity derivative instruments, including futures, options, swaps and other agreements. The fair value of the Company’s commodity derivatives is determined using unadjusted quoted prices for identical instruments on the CBOT. The Company estimates the fair market value of their finished goods and raw materials inventories using the market price quotations of similar forward future contracts listed on the CBOT and adjusts for the local market adjustments derived from other grain terminals in our area. This market adjustment caused a negative balance in the Level 1 inventory amount as of December 31, 2016. The Company has patronage investments in other cooperatives and common stock in a privately held entity. There is no market for their patronage credits or the entity’s common shares, and it is impracticable to estimate fair value of the Company’s investments. These investments are carried on the balance sheet at original cost plus the amount of patronage earnings allocated to the Company, less any cash distributions received.

Business Credit Risk and Concen

Business Credit Risk and Concentrations	12 Months Ended
	Dec. 31, 2016
Risks and Uncertainties [Abstract]
Business Credit Risk and Concentration	Business Credit Risk and Concentrations The Company also grants credit to customers throughout the United States and Canada. The Company evaluates each customer’s credit worthiness on a case-by-case basis. Accounts receivable are generally unsecured. These receivables were $20,352,581 and $21,891,739 at December 31, 2016 and 2015 , respectively. Soybean meal sales accounted for approximately 59% , 61% , and 63% of total revenues for the years ended December 31, 2016 , 2015 , and 2014 , respectively. Soybean oil sales represented approximately 38% , 35% , and 33% of total revenues for the years ended December 31, 2016 , 2015 , and 2014 , respectively. Net revenue by geographic area for the years ended December 31, 2016 , 2015 , and 2014 are as follows: 2016 2015 2014 United States $ 307,744,743 $ 294,345,947 $ 335,832,896 Canada 70,186,950 73,214,481 99,009,280 Totals $ 377,931,693 $ 367,560,428 $ 434,842,176

Members' Equity

Members' Equity	12 Months Ended
	Dec. 31, 2016
Equity [Abstract]
Members' Equity	Members' Equity A minimum of 2,500 capital units is required for an ownership interest in the Company. Such units are subject to certain transfer restrictions. The Company retains the right to redeem the units at the greater of $0.20 per unit or the original purchase price less cumulative distributions through the date of redemption in the event a member attempts to dispose of the units in a manner not in conformity with the Operating Agreement, if a member becomes a holder of less than 2,500 units, or if a member becomes an owner (directly or indirectly) of more than 1.5% of the issued and outstanding capital units. Earnings, losses and cash distributions are allocated to members based on their percentage of ownership in the Company. On January 19, 2016, the Company's Board of Managers approved a cash distribution of approximately $15.0 million , or 49.5 cent s per capital unit. The distribution was paid in accordance with the Company's operating agreement and distribution policy on February 5, 2016.

Contingencies

Contingencies	12 Months Ended
	Dec. 31, 2016
Commitments and Contingencies Disclosure [Abstract]
Contingencies	Contingencies From time to time in the ordinary course of our business, we may be named as a defendant in legal proceedings related to various issues, including without limitation, workers’ compensation claims, tort claims, or contractual disputes. We carry insurance that provides protection against general commercial liability claims, claims against our directors, officers and employees, business interruption, automobile liability, and workers’ compensation claims. We are not currently involved in any material legal proceedings and are not aware of any potential claims. On November 5, 2015, an incident occurred at the Volga, South Dakota facility which resulted in the death of an outside contractor. The contractor was in the process of installing a catwalk in the vicinity of an oil storage tank when the incident occurred. The Company has reported the accident to the U.S. Occupational Safety and Health Administration ("OSHA"), which is conducting an investigation. No civil lawsuit has been filed. The Company has notified its respective insurance carriers.

Subsequent Events

Subsequent Events	12 Months Ended
	Dec. 31, 2016
Subsequent Events [Abstract]
Subsequent Events	Subsequent Events Except for the event listed below, we evaluated all of our activity and concluded that no subsequent events have occurred that would require recognition in our financial statements or disclosed in the notes to our financial statements. On January 17, 2017, the Company’s Board of Managers declared a cash distribution to its members of approximately $9.4 million . The distribution was issued and paid to members in accordance with the Company's operating agreement and distribution policy on February 3, 2017 .

Principal Activity and Signif25

Principal Activity and Significant Accounting Policies (Policies)	12 Months Ended
	Dec. 31, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Cash and Cash Equivalents, Polic	Cash and cash equivalents The Company considers all highly liquid investment instruments with original maturities of three months or less at the time of acquisition to be cash equivalents.
Trade and Other Accounts Receivable, Policy	Accounts receivable are considered past due when payments are not received on a timely basis in accordance with the Company’s credit terms, which is generally 30 days from invoice date. Accounts considered uncollectible are written off. The Company’s estimate of the allowance for doubtful accounts is based on historical experience, its evaluation of the current status of receivables, and unusual circumstances, if any.
Inventory, Policy	Inventories Finished goods (soybean meal, oil, refined oil, and hulls) and raw materials (soybeans) are valued at estimated market value. This accounting policy is in accordance with the guidelines described in Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) 905, Agriculture (formerly AICPA Statement of Position No. 85-3, Accounting by Agricultural Producers and Agricultural Cooperatives). Supplies and other inventories are stated at the lower of cost, determined by the first-in, first-out method, or market.
Cost Method Investments, Policy	Investments Investments in cooperatives are carried at cost plus the amount of patronage earnings allocated to the Company, less any cash distributions received.
Property, Plant and Equipment, Policy	Property and equipment Property and equipment is stated at cost. Expenditures for renewals and improvements that significantly add to the productive capacity or extend the useful life of an asset are capitalized. Expenditures for maintenance and repairs are charged to expense when incurred. When depreciable properties are sold or retired, the cost and accumulated depreciation are eliminated from the accounts and the resultant gain or loss is reflected in income. Depreciation is provided for over the estimated useful lives of the individual assets using the straight-line method. The range of the estimated useful lives used in the computation of depreciation is as follows: Building and improvements 10-39 years Equipment and furnishings 3-15 years The Company reviews its long-lived assets for impairment whenever events indicate that the carrying amount of the asset may not be recoverable. If impairment indicators are present and the future cash flows is less than the carrying amount of the assets, values are reduced to the estimated fair value of those assets.
Revenue Recognition, Deferred Revenue	Deferred revenue The Company recognizes revenues as earned. Amounts received in advance of the period in which service is rendered are recorded as a liability under “Deferred liabilities”.
Use of Estimates, Policy	Use of estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
Revenue Recognition, Policy	Revenue Recognition Revenue is recognized when the title to the related products is transferred to the customer. When a sales contract has delivery terms of ‘FOB Shipping Point’, revenue is recognized when the products are shipped. For those sales contracts with delivery terms of ‘FOB Destination’, revenue is not recognized until the products are delivered to the agreed-upon location. Revenues are presented net of discounts and sales allowances.
Revenue Recognition, Cargo and Freight, Policy	Freight The Company presents all amounts billed to the customer for freight as a component of net revenue. Costs incurred for freight are reported as a component of cost of revenue. The Company’s “Shipping and Handling Costs” policy is in accordance with ASC 605, Revenue Recognition.
Advertising Costs, Policy	Advertising costs Advertising and promotion costs are expensed as incurred.
Regulatory Environmental Costs, Policy	Environmental remediation It is management’s opinion that the amount of any potential environmental remediation costs will not be material to the Company’s financial condition, results of operations, or cash flows; therefore, no accrual has been recorded.
Derivatives, Methods of Accounting, Hedging Derivatives	Accounting for derivative instruments and hedging activities All of the Company’s derivatives are designated as non-hedge derivatives. The futures and options contracts used by the Company are discussed below. Although the contracts may be effective economic hedges of specified risks, they are not designated as, nor accounted for, as hedging instruments. The Company, as part of its trading activity, uses futures and option contracts offered through regulated commodity exchanges to reduce risk. The Company is exposed to risk of loss in the market value of inventories. To reduce that risk, the Company generally takes opposite and offsetting positions using futures contracts or options. Unrealized gains and losses on futures and options contracts used to hedge soybean, oil and meal inventories, as well as foreign exchange rates, are recognized as a component of net proceeds for financial reporting. Inventories are recorded at estimated market value. Consequently, unrealized gains and losses on derivative contracts are offset by unrealized gains and losses on inventories and reflected in current earnings.
Earnings Per Share, Policy	Earnings per capital unit Earnings per capital unit are calculated based on the weighted average number of capital units outstanding. The Company has no other capital units or other member equity instruments that are dilutive for purposes of calculating earnings per capital unit.
Income Tax, Policy	Income taxes As a limited liability company, the Company’s taxable income or loss is allocated to members in accordance with their respective percentage ownership. Therefore, no provision or liability for income taxes has been included in the financial statements. The Company has evaluated the provisions of FASB ASC 740-10 for uncertain tax positions. As of December 31, 2016 and 2015 , the unrecognized tax benefit accrual was zero. The Company will recognize future accrued interest and penalties related to unrecognized tax benefits in income tax expense if incurred. As of December 31, 2016 , the book value of the Company’s net assets exceeds the tax basis of those assets by approximately $1.8 million . The Company files income tax returns in the U.S. federal jurisdiction and various state jurisdictions. We are no longer subject to income tax examinations by U.S. federal and state tax authorities for years prior to 2013. We currently have no tax years under examination.
New Accounting Pronouncements, Policy	Recent accounting pronouncements The Company has reviewed all recently issued, but not yet effective, accounting pronouncements. The Financial Accounting Standards Board issued Accounting Standards Update No. 2014-09 (Revenue from Contracts with Customers), which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The ASU will replace most existing revenue recognition guidance in U.S. GAAP. The ASU is effective for reporting periods beginning after December 15, 2017. Early adoption is permitted. The Company is in the initial stages of evaluating the effect of the standard on its financial statements and continues to evaluate the available transition methods. However, based on their initial evaluation, the Company does not expect there to be material changes to their current Revenue Recognition policies due to the non-complex contracts with their customers. The Company does not plan to adopt the standard until the interim period ended March 31, 2018. The FASB issued ASU No. 2015-11 (Inventory: Simplifying the Measurement of Inventory), which requires an entity to measure inventory within the scope at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonable predictable costs of completion, disposal and transportation. This ASU is effective for annual reporting periods beginning after December 15, 2016. Early adoption is permitted. Management is currently evaluating the impact of adopting this standard but does not anticipate a material impact to its financial statements. FASB issued ASU No. 2016-02 (Leases). The amendments in this ASU revise the accounting related to lessee accounting. Under the new guidance, lessees will be required to recognize a lease liability and a right-of-use asset for all leases. The new lease guidance also simplified the accounting for sale and leaseback transactions primarily because lessees must recognize lease assets and lease liabilities. The amendments in this ASU are effective for annual reporting periods beginning on January 1, 2019 and should be applied through a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. Early adoption is permitted. The Company is in the initial stages of evaluating the effect of the standard on their financial statements and continues to evaluate the available transition methods. However, based on their initial evaluation, they do expect there to be material changes to both their current and long-term lease liabilities and fixed assets, because their existing classification of their rail car leases as operating leases, as further described in Note 11, will no longer be available to use after adoption of this new standard. The Company does not plan to adopt the standard until the interim period ended March 31, 2019. FASB issued ASU No. 2016-15 (Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments). The ASU, which addresses eight specific classification issues, is intended to reduce diversity in current practice regarding the manner in which certain cash receipts and cash payments are presented and classified in the cash flow statement. The standard update is effective for fiscal years beginning after December 31, 2017 and interim periods within those fiscal years. Early adoption is permitted. Management is currently evaluating the impact of adopting this update but does not anticipate a material impact to its financial statements.

Accounts Receivable (Tables)

Accounts Receivable (Tables)	12 Months Ended
	Dec. 31, 2016
Receivables [Abstract]
Past Due Financing Receivables	The following table presents the aging analysis of trade receivables as of December 31, 2016 and 2015 : 2016 2015 Past due: Less than 30 days past due $ 3,537,380 $ 2,750,039 30-59 days past due 109,345 145,276 60-89 days past due — 32,540 Greater than 90 days past due — 776,026 Total past due 3,646,725 3,703,881 Current 16,705,856 18,187,858 Totals $ 20,352,581 $ 21,891,739
Schedule of Accounts, Notes, Loans and Financing Receivable	The following table provides information regarding the Company’s allowance for doubtful accounts receivable as of December 31, 2016 , 2015 , and 2014 : 2016 2015 2014 Balances, beginning of year $ 495,000 $ — $ — Amounts charged (credited) to costs and expenses 322,065 511,404 1,516,052 Additions (deductions) (817,065 ) (16,404 ) (1,516,052 ) Balances, end of year $ — $ 495,000 $ —

Inventories (Tables)

Inventories (Tables)	12 Months Ended
	Dec. 31, 2016
Inventory Disclosure [Abstract]
Schedule of Inventory, Current	The Company’s inventories consist of the following as of December 31: 2016 2015 Finished goods $ 19,740,287 $ 19,583,416 Raw materials 12,406,656 6,984,054 Supplies & miscellaneous 246,478 261,726 Totals $ 32,393,421 $ 26,829,196

Investments in Cooperatives (Ta

Investments in Cooperatives (Tables)	12 Months Ended
	Dec. 31, 2016
Investments in and Advances to Affiliates, Schedule of Investments [Abstract]
Schedule Of Investment In Co Operatives	The Company’s investments in cooperatives consist of the following at December 31: 2016 2015 Minnesota Soybean Processors: Common stock and Class A Preferred Shares $ 4,710,159 $ 4,710,159 CoBank 1,521,074 1,514,849 Totals $ 6,231,233 $ 6,225,008

Property and Equipment (Tables)

Property and Equipment (Tables)	12 Months Ended
	Dec. 31, 2016
Property, Plant and Equipment [Abstract]
Property, Plant and Equipment	The following is a summary of property and equipment at December 31: 2016 2015 Cost Accumulated Depreciation Net Net Land $ 543,816 $ — $ 543,816 $ 543,816 Land improvements 1,512,308 (286,171 ) 1,226,137 980,439 Buildings and improvements 18,919,718 (7,918,348 ) 11,001,370 10,149,709 Machinery and equipment 64,556,459 (35,810,138 ) 28,746,321 26,979,433 Company vehicles 127,965 (73,452 ) 54,513 76,941 Furniture and fixtures 1,572,634 (993,439 ) 579,195 583,285 Construction in progress 2,599,788 — 2,599,788 1,607,454 Totals $ 89,832,688 $ (45,081,548 ) $ 44,751,140 $ 40,921,077

Long-Term Debt (Tables)

Long-Term Debt (Tables)	12 Months Ended
	Dec. 31, 2016
Debt Disclosure [Abstract]
Schedule of Debt	2016 2015 Revolving term loan from CoBank, interest at variable rates (3.23% and 2.88% at December 31, 2016 and 2015, respectively), secured by substantially all property and equipment. Loan matures September 20, 2020. $ — $ — Note payable to Brookings Regional Railroad Authority, due in annual principal and interest installments of $75,500, interest rate at 2.00%, secured by railroad track assets. Note matures June 1, 2020. 785,376 845,440 785,376 845,440 Less current maturities (59,558 ) (58,344 ) Totals $ 725,818 $ 787,096
Schedule of Maturities of Long-term Debt	The minimum principal payments on long-term debt obligations are as follows as of December 31, 2016 : For the years ending December 31: 2017 $ 59,558 2018 60,749 2019 61,964 2020 603,105 Total $ 785,376

Commitments (Tables)

Commitments (Tables)	12 Months Ended
	Dec. 31, 2016
Commitments and Contingencies Disclosure [Abstract]
Schedule of Future Minimum Rental Payments for Operating Leases	The following is a schedule of future minimum payments required under these operating commitments. Rail Cars Other Total Year ended December 31: 2017 $ 3,025,000 $ 28,000 $ 3,053,000 2018 2,464,000 16,000 2,480,000 2019 2,397,000 10,000 2,407,000 2020 2,158,000 3,000 2,161,000 2021 1,290,000 — 1,290,000 Thereafter 368,000 — 368,000 Totals $ 11,702,000 $ 57,000 $ 11,759,000

Cash Flow Information (Tables)

Cash Flow Information (Tables)	12 Months Ended
	Dec. 31, 2016
Cash Flow Information [Abstract]
Schedule Of Changes In Assets and Liabilities	The following is a schedule of changes in assets and liabilities used to determine cash from operating activities: 2016 2015 2014 (Increase) decrease in assets: Trade accounts receivable $ 1,044,158 $ 1,200,113 $ 7,820,461 Inventories (5,564,225 ) 7,370,010 31,110,215 Margin account deposit 5,066,517 (4,917,544 ) (862,685 ) Prepaid expenses 219,934 (220,800 ) 76,101 766,384 3,431,779 38,144,092 Increase (decrease) in liabilities: Accounts payable (14,565 ) 152,529 (610,479 ) Accrued commodity purchases 628,510 (4,688,215 ) (14,925,455 ) Accrued expenses and interest (423,386 ) 7,772 (642,710 ) Deferred liabilities 1,495,170 (475,474 ) 99,846 1,685,729 (5,003,388 ) (16,078,798 ) Totals $ 2,452,113 $ (1,571,609 ) $ 22,065,294

Derivative Instruments and He33

Derivative Instruments and Hedging Activities (Tables)	12 Months Ended
	Dec. 31, 2016
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Schedule Of Derivatives Assets and Liabilities Not Designated As Hedging Instruments	As of December 31, 2016 and 2015 , the value of the Company’s open futures, options and forward contracts was approximately $(1,364,807) and $2,211,112 , respectively. Amounts As of December 31, 2016 Balance Sheet Classification Asset Derivatives Liability Derivatives Derivatives not designated as hedging instruments: Commodity contracts Current Assets $ 3,451,863 $ 4,829,001 Foreign exchange contracts Current Assets 32,794 20,463 Totals $ 3,484,657 $ 4,849,464 Amounts As of December 31, 2015 Balance Sheet Classification Asset Derivatives Liability Derivatives Derivatives not designated as hedging instruments: Commodity contracts Current Assets $ 10,599,610 $ 8,296,932 Foreign exchange contracts Current Assets 75,319 166,885 Totals $ 10,674,929 $ 8,463,817
Schedule Of Derivative Instruments, Net Realized and Unrealized Gain (Loss) On Derivatives Not Designated As Hedging Instruments	During the years ended December 31, 2016 , 2015 , and 2014 , net realized and unrealized gains (losses) on derivative transactions were recognized in the statements of operations as follows: Net Gain (Loss) Recognized on Derivative Activities for the Year Ending December 31: 2016 2015 2014 Derivatives not designated as hedging instruments: Commodity contracts $ 5,269,485 $ 3,526,586 $ (1,184,594 ) Foreign exchange contracts 45,517 130,914 (8,573 ) Totals $ 5,315,002 $ 3,657,500 $ (1,193,167 )

Fair Value of Financial Instr34

Fair Value of Financial Instruments (Tables)	12 Months Ended
	Dec. 31, 2016
Fair Value Disclosures [Abstract]
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis	The following tables set forth financial assets and liabilities measured at fair value in the balance sheets and the respective levels to which fair value measurements are classified within the fair value hierarchy as of December 31, 2016 and 2015 : Fair Value as of December 31, 2016 Level 1 Level 2 Level 3 Total Financial assets: Inventory $ (1,377,137 ) $ 33,159,913 $ — $ 31,782,776 Margin deposits $ 2,400,892 $ — $ — $ 2,400,892 Fair Value as of December 31, 2015 Level 1 Level 2 Level 3 Total Financial Assets: Inventory $ 2,302,679 $ 24,000,649 $ — $ 26,303,328 Margin deposits $ 7,467,409 $ — $ — $ 7,467,409

Business Credit Risk and Conc35

Business Credit Risk and Concentrations (Tables)	12 Months Ended
	Dec. 31, 2016
Risks and Uncertainties [Abstract]
Schedules of Concentration of Risk, by Risk Factor	Net revenue by geographic area for the years ended December 31, 2016 , 2015 , and 2014 are as follows: 2016 2015 2014 United States $ 307,744,743 $ 294,345,947 $ 335,832,896 Canada 70,186,950 73,214,481 99,009,280 Totals $ 377,931,693 $ 367,560,428 $ 434,842,176

Principal Activity and Signif36

Principal Activity and Significant Accounting Policies (Details Textual) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Accounts receivable credit period	30 days
Advertising Expense	$ 40,000	$ 29,000	$ 28,000
Unrecognized Tax Benefits	0	$ 0
Deferred Tax Assets, Net Of Valuation Allowance	$ 1,800,000
Building and Building Improvements | Maximum
Property, Plant and Equipment, Estimated Useful Lives	39 years
Building and Building Improvements | Minimum
Property, Plant and Equipment, Estimated Useful Lives	10 years
Furniture and Fixtures | Maximum
Property, Plant and Equipment, Estimated Useful Lives	15 years
Furniture and Fixtures | Minimum
Property, Plant and Equipment, Estimated Useful Lives	3 years

Accounts Receivable (Details Te

Accounts Receivable (Details Textual)	12 Months Ended
	Dec. 31, 2016
Receivables [Abstract]
Percentage Of Late Fee On Past Due Receivables	1.50%
Accounts receivable credit period	30 days

Accounts Receivable (Details)

Accounts Receivable (Details) - USD ($)	Dec. 31, 2016	Dec. 31, 2015
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due	$ 3,646,725	$ 3,703,881
Current	16,705,856	18,187,858
Totals	20,352,581	21,891,739
Financing Receivables, 1 to 29 Days Past Due [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due	3,537,380	2,750,039
Financing Receivables, 30 to 59 Days Past Due [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due	109,345	145,276
Financing Receivables, 60 to 89 Days Past Due [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due	0	32,540
Financing Receivables, Equal to Greater than 90 Days Past Due [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due	$ 0	$ 776,026

Accounts Receivable (Details 1

Accounts Receivable (Details 1) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Allowance for Doubtful Accounts Receivable [Roll Forward]
Balances, beginning of year	$ 495,000	$ 0	$ 0
Amounts charged (credited) to costs and expenses	322,065	511,404	1,516,052
Additions (deductions)	817,065	16,404	1,516,052
Balances, end of year	$ 0	$ 495,000	$ 0

Inventories (Details)

Inventories (Details) - USD ($)	Dec. 31, 2016	Dec. 31, 2015
Inventory Disclosure [Abstract]
Finished goods	$ 19,740,287	$ 19,583,416
Raw materials	12,406,656	6,984,054
Supplies & miscellaneous	246,478	261,726
Totals	$ 32,393,421	$ 26,829,196

Margin Deposits Margin Deposits

Margin Deposits Margin Deposits (Details)	12 Months Ended
	Dec. 31, 2016
Future [Member]
Derivative [Line Items]
Contracts Maturity	12 months

Investments in Cooperatives (De

Investments in Cooperatives (Details) - USD ($)	Dec. 31, 2016	Dec. 31, 2015
Investments in associated cooperative companies:
Investments in cooperatives	$ 6,231,233	$ 6,225,008
Common stock and Class A Preferred Shares
Investments in associated cooperative companies:
Investments in cooperatives	4,710,159	4,710,159
Cobank
Investments in associated cooperative companies:
Investments in cooperatives	$ 1,521,074	$ 1,514,849

Investments in Cooperatives (43

Investments in Cooperatives (Details Textual) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Proceeds from CHS, retirement of previous retained patronage	$ 0	$ 611,453	$ 124,819
Preferred Class B
Debt Instrument, Interest Rate, Stated Percentage	8.00%

Convertible Notes Receivable (D

Convertible Notes Receivable (Details)	Nov. 23, 2016USD ($)$ / shares	Jan. 12, 2016USD ($)
Receivables [Abstract]
Face amount of debt | $	$ 1,250,000	$ 750,000
Interest rate (percent)	15.00%	10.00%
Percent of warrant coverage	20.00%
Exercise price of warrant (in usd per share) | $ / shares	$ 0.01
Numerator used for warrants determination (in shares)	250,000
Denominator used for warrants conversion ratio (percent)	11

Property and Equipment (Details

Property and Equipment (Details) - USD ($)	Dec. 31, 2016	Dec. 31, 2015
Cost	$ 89,832,688	$ 83,083,687
Less accumulated depreciation	(45,081,548)	(42,162,610)
Total property and equipment, net	44,751,140	40,921,077
Land
Cost	543,816
Less accumulated depreciation	0
Total property and equipment, net	543,816	543,816
Land Improvements
Cost	1,512,308
Less accumulated depreciation	(286,171)
Total property and equipment, net	1,226,137	980,439
Building and Building Improvements
Cost	18,919,718
Less accumulated depreciation	(7,918,348)
Total property and equipment, net	11,001,370	10,149,709
Machinery and Equipment
Cost	64,556,459
Less accumulated depreciation	(35,810,138)
Total property and equipment, net	28,746,321	26,979,433
Vehicles
Cost	127,965
Less accumulated depreciation	(73,452)
Total property and equipment, net	54,513	76,941
Furniture and Fixtures
Cost	1,572,634
Less accumulated depreciation	(993,439)
Total property and equipment, net	579,195	583,285
Construction In Progress
Cost	2,599,788
Less accumulated depreciation	0
Total property and equipment, net	$ 2,599,788	$ 1,607,454

Property and Equipment (Detai46

Property and Equipment (Details Textual) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Property, Plant and Equipment [Abstract]
Depreciation	$ 3,230,255	$ 2,898,014	$ 2,186,958

Notes Payable - Seasonal Loan (

Notes Payable - Seasonal Loan (Details Textual) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Notes Payable Seasonal Loan [Abstract]
Line Of Credit Facility, Expiration Date	Oct. 1, 2017
Line of Credit Facility, Maximum Borrowing Capacity	$ 15,000,000
Line of Credit Facility, Current Borrowing Capacity	$ 5,000,000
Line Of Credit Facility, Interest Rate At Period End	2.98%
Long-term line of credit	$ 0	$ 0
Line Of Credit Facility, Remaining Borrowing Capacity	$ 15,000,000

Long-Term Debt (Details)

Long-Term Debt (Details) - USD ($)	Dec. 31, 2016	Dec. 31, 2015
Debt Disclosure [Abstract]
Revolving term loan from CoBank, interest at variable rates (4.21% and 4.55% at December 31, 2012 and 2011, respectively), secured by substantially all property and equipment. Loan matures March 20, 2018.	$ 0	$ 0
Notes Payable	785,376	845,440
Long-term Debt	785,376	845,440
Current maturities of long-term debt	(59,558)	(58,344)
Totals	$ 725,818	$ 787,096

Long-Term Debt (Details 1)

Long-Term Debt (Details 1) - USD ($)	Dec. 31, 2016	Dec. 31, 2015
For the years ending December 31:
2,014	$ 59,558
2,015	60,749
2,016	61,964
2,017	603,105
Long-term Debt	$ 785,376	$ 845,440

Long-Term Debt (Details Textual

Long-Term Debt (Details Textual) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Long-term line of credit	$ 0	$ 0
Line of Credit Facility, Periodic Payment, Principal	$ 1,250,000
Line Of Credit Facility, Interest Rate At Period End	2.98%
Line of Credit Facility, Fair Value of Amount Outstanding	$ 10,000,000
Notes Payable	$ 785,376	$ 845,440
Revolving Term Loan
Debt Instrument, Maturity Date	Sep. 20, 2020
Long-term line of credit	$ 10,000,000
Line Of Credit Facility, Interest Rate At Period End	2.88%	3.16%
Notes Payable, Other Payables [Member]
Debt Instrument, Periodic Payment, Interest	$ 75,500
Debt Instrument, Interest Rate, Stated Percentage	2.00%
Notes Payable	$ 964,070

Employee Benefit Plans (Details

Employee Benefit Plans (Details Textual) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items]
Defined Contribution Plan, Cost Recognized	$ 157,000	$ 157,000	$ 116,000
Deferred Compensation Arrangement with Individual, Employer Contribution	$ 0	71,827	11,827
Defined Benefit Plan, Future Payments Discounted, Percentage	8.00%
Deferred Compensation Plan Expense Benefit	$ 0	20,000	25,000
Profit Sharing
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items]
Deferred Compensation Arrangement with Individual, Percent of Profits Allocated	4.60%
Deferred Compensation Arrangement with Individual, Employer Contribution	$ 2,000,000
Deferred Compensation Arrangement with Individual, Compensation Expense	$ 473,000	$ 995,000	$ 815,000

Commitments (Details)

Commitments (Details) $ in Thousands	Dec. 31, 2016USD ($)
Year ended December 31:
2,013	$ 3,053
2,014	2,480
2,015	2,407
2,016	2,161
2,017	1,290
Thereafter	368
Totals	11,759
Railroad Transportation Equipment
Year ended December 31:
2,013	3,025
2,014	2,464
2,015	2,397
2,016	2,158
2,017	1,290
Thereafter	368
Totals	11,702
Other Transportation Equipment
Year ended December 31:
2,013	28
2,014	16
2,015	10
2,016	3
2,017	0
Thereafter	0
Totals	$ 57

Commitments (Details Textual)

Commitments (Details Textual)	1 Months Ended	12 Months Ended
	Sep. 30, 2011	Dec. 31, 2016USD ($)car	Dec. 31, 2015USD ($)	Dec. 31, 2014USD ($)	Sep. 01, 2011USD ($)
Operating Leases, Rent Expense		$ 101,755	$ 128,780	$ 126,662
Operating Leases, Future Minimum Payments Due, Next Twelve Months		3,053,000
Railroad Transportation Equipment
Operating Leases, Rent Expense		3,112,577	2,987,265	2,377,908
Operating Leases, Future Minimum Payments Due, Next Twelve Months		$ 3,025,000
Ge Capital
Number Of Rail Cars | car		250
Monthly Payments For Operating Leases		$ 109,753
Trinity Capital
Number Of Rail Cars | car		156
Monthly Payments For Operating Leases		$ 88,074
Flagship Rail Services
Number Of Rail Cars | car		64
Monthly Payments For Operating Leases		$ 27,200
Gatx Corporation
Number Of Rail Cars | car		15
Monthly Payments For Operating Leases		$ 10,050
American Railcar Leasing, Inc.
Number Of Rail Cars | car		30
Monthly Payments For Operating Leases		$ 30,780
Hetland Inc
Operating Leases, Rent Expense		$ 0	$ 0	$ 404,595
Operating Leases, Future Minimum Payments Due, Next Twelve Months					$ 200,000
Lease Expiration Date	Aug. 31, 2014
Minimum
Lease Term		5 years
Maximum
Lease Term		18 years

Cash Flow Information (Details)

Cash Flow Information (Details) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
(Increase) decrease in assets:
Trade accounts receivable	$ 1,044,158	$ 1,200,113	$ 7,820,461
Inventories	(5,564,225)	7,370,010	31,110,215
Margin account deposit	5,066,517	(4,917,544)	(862,685)
Prepaid expenses	219,934	(220,800)	76,101
Total Increase (Decrease) in Operating Assets	766,384	3,431,779	38,144,092
Increase (decrease) in liabilities:
Accounts payable	(14,565)	152,529	(610,479)
Accrued commodity purchases	628,510	(4,688,215)	(14,925,455)
Accrued expenses and interest	(423,386)	7,772	(642,710)
Deferred liabilities	1,495,170	(475,474)	99,846
Total Increase (Decrease) in Operating Liabilities	1,685,729	(5,003,388)	(16,078,798)
Total	$ (2,452,113)	$ 1,571,609	$ (22,065,294)

Derivative Instruments and He55

Derivative Instruments and Hedging Activities (Details) - USD ($)	Dec. 31, 2016	Dec. 31, 2015
Derivatives not designated as hedging instruments:
Asset Derivatives	$ 3,484,657	$ 10,674,929
Liability Derivatives	4,849,464	8,463,817
Commodity Contract
Derivatives not designated as hedging instruments:
Asset Derivatives	3,451,863	10,599,610
Liability Derivatives	4,829,001	8,296,932
Foreign Exchange Contract
Derivatives not designated as hedging instruments:
Asset Derivatives	32,794	75,319
Liability Derivatives	$ 20,463	$ 166,885

Derivative Instruments and He56

Derivative Instruments and Hedging Activities (Details 1) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Derivatives not designated as hedging instruments:
Net Gain (Loss) Recognized on Derivative Activities	$ 5,315,002	$ 3,657,500	$ (1,193,167)
Commodity Contract
Derivatives not designated as hedging instruments:
Net Gain (Loss) Recognized on Derivative Activities	5,269,485	3,526,586	(1,184,594)
Foreign Exchange Contract
Derivatives not designated as hedging instruments:
Net Gain (Loss) Recognized on Derivative Activities	$ 45,517	$ 130,914	$ (8,573)

Derivative Instruments and He57

Derivative Instruments and Hedging Activities (Details Textual) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net	$ 5,315,002	$ 3,657,500	$ (1,193,167)
Derivative Assets (Liabilities), At Fair Value, Net	$ (1,364,807)	$ 2,211,112

Fair Value of Financial Instr58

Fair Value of Financial Instruments (Details) - USD ($)	Dec. 31, 2016	Dec. 31, 2015
Financial assets:
Inventory	$ 31,782,776	$ 26,303,328
Margin deposits	2,400,892	7,467,409
Fair Value, Inputs, Level 1
Financial assets:
Inventory	(1,377,137)	2,302,679
Margin deposits	2,400,892	7,467,409
Fair Value, Inputs, Level 2
Financial assets:
Inventory	33,159,913	24,000,649
Margin deposits	0	0
Fair Value, Inputs, Level 3
Financial assets:
Inventory	0	0
Margin deposits	$ 0	$ 0

Business Credit Risk and Conc59

Business Credit Risk and Concentrations (Details) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
United States
Segment Reporting Information, Revenue for Reportable Segment	$ 307,744,743	$ 294,345,947	$ 335,832,896
Canada
Segment Reporting Information, Revenue for Reportable Segment	70,186,950	73,214,481	99,009,280
United states and Canada
Segment Reporting Information, Revenue for Reportable Segment	$ 377,931,693	$ 367,560,428	$ 434,842,176

Business Credit Risk and Conc60

Business Credit Risk and Concentrations (Details Textual) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Receivables, Net, Current	$ 20,352,581	$ 21,891,739
Soybean Meal
Sales Revenue, Goods, Net, Percentage	59.00%	61.00%	63.00%
Soybean Oil
Sales Revenue, Goods, Net, Percentage	38.00%	35.00%	33.00%

Members' Equity (Details Textua

Members' Equity (Details Textual)	Feb. 04, 2015USD ($)$ / shares	Dec. 31, 2016$ / Unitsshares	Dec. 31, 2014USD ($)
Equity [Abstract]
Minimum Capital Units | shares		2,500
Redemption Of Members Equity Per Unit | $ / Units		0.20
Net Income Distribution To Members Description		if a member becomes a holder of less than 2,500 units, or if a member becomes an owner (directly or indirectly) of more than 1.5% of the issued and outstanding capital units.
Distribution to members | $	$ 15,000,000		$ 1,312
Distribution to members, in dollars per share | $ / shares	$ 0.495

Subsequent Events (Details Text

Subsequent Events (Details Textual) - USD ($)	Feb. 03, 2017	Jan. 17, 2017	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Distributions to members			$ (15,048,481)	$ (15,048,481)	$ (11,001,312)
Subsequent Event
Distributions to members		$ (9,400,000)
Distribution Made To Member Or Limited Partner, Distribution Date	Feb. 3, 2017