Document_and_Entity_Informatio
Document and Entity Information Document (USD $) | 12 Months Ended | ||
Oct. 31, 2013 | Jan. 29, 2014 | Apr. 30, 2013 | |
Document Information [Line Items] | ' | ' | ' |
Entity Registrant Name | 'Granite Falls Energy, LLC | ' | ' |
Entity Central Index Key | '0001181749 | ' | ' |
Current Fiscal Year End Date | '--10-31 | ' | ' |
Entity Filer Category | 'Non-accelerated Filer | ' | ' |
Document Type | '10-K | ' | ' |
Document Period End Date | 31-Oct-13 | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Amendment Flag | 'false | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 30,606 | ' |
Entity Well-known Seasoned Issuer | 'No | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Public Float | ' | ' | $21,185,000 |
Balance_Sheets
Balance Sheets (USD $) | Oct. 31, 2013 | Oct. 31, 2012 |
Current Assets | ' | ' |
Cash | $1,158,774 | $685,828 |
Restricted cash | 393,750 | 494,000 |
Accounts receivable | 6,450,694 | 7,356,534 |
Inventory | 12,370,277 | 12,013,169 |
Commodity derivative instruments | 0 | 0 |
Prepaid expenses and other current assets | 1,096,483 | 165,519 |
Total current assets | 21,469,978 | 20,715,050 |
Property, Plant and Equipment | ' | ' |
Land and improvements | 12,307,063 | 7,095,172 |
Railroad improvements | 8,005,523 | 4,121,148 |
Process equipment and tanks | 110,440,407 | 64,678,860 |
Administration building | 1,015,361 | 279,734 |
Office equipment | 265,792 | 154,072 |
Rolling stock | 1,691,857 | 1,305,395 |
Construction in progress | 2,067,213 | 3,831,263 |
Property, Plant and Equipment, Gross | 135,793,216 | 81,465,644 |
Less accumulated depreciation | 46,984,361 | 41,047,562 |
Net property, plant and equipment | 88,808,855 | 40,418,082 |
Goodwill | 1,372,473 | 0 |
Other Assets | 1,021,916 | 0 |
Total Assets | 112,673,222 | 61,133,132 |
Current Liabilities | ' | ' |
Current portion long-term debt | 3,490,808 | 114,718 |
Accounts payable | 3,058,633 | 3,527,840 |
Corn payable to FCE - related party | 4,001,852 | 1,995,997 |
Commodity derivative instruments | 75,113 | 45,563 |
Accrued liabilities | 696,858 | 318,819 |
Total current liabilities | 11,323,264 | 6,002,937 |
Long-term Debt, less current portion | 32,981,955 | 5,274,870 |
Commitments and Contingencies | ' | ' |
Members' Equity, 30,656 units authorized, issued and outstanding | 59,887,346 | 49,855,325 |
Stockholders' Equity Attributable to Noncontrolling Interest | 8,480,657 | 0 |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 68,368,003 | 49,855,325 |
Total Liabilities and Members’ Equity | $112,673,222 | $61,133,132 |
Balance_Sheets_Parenthetical
Balance Sheets (Parenthetical) | Oct. 31, 2013 | Oct. 31, 2012 |
Common Stock, Shares Authorized | 30,606 | 30,656 |
Common Stock, Shares, Issued | 30,606 | 30,656 |
Common stock, shares outstanding | 30,606 | 30,656 |
Statements_of_Operations
Statements of Operations (USD $) | 12 Months Ended | ||
Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 | |
Revenues | $224,100,934 | $175,162,043 | $156,521,489 |
Cost of Goods Sold - primarily related party | 210,077,621 | 172,708,074 | 142,353,416 |
Gross Profit | 14,023,313 | 2,453,969 | 14,168,073 |
Operating Expenses | 2,988,583 | 2,449,596 | 2,002,706 |
Operating Income | 11,034,730 | 4,373 | 12,165,367 |
Other Income (Expense) | ' | ' | ' |
Other income (expense) | -48,373 | 182,186 | 37,281 |
Interest income | 813 | 18,050 | 93,566 |
Interest expense | -428,397 | -44,002 | -4,358 |
Total other income (expense), net | -475,957 | 156,234 | 126,489 |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 10,558,773 | 160,607 | 12,291,856 |
Net Income (Loss) Attributable to Noncontrolling Interest | 526,752 | 0 | 0 |
Net Income | $10,032,021 | $160,607 | $12,291,856 |
Weighted Average Units Outstanding - Basic and Diluted | 30,606 | 30,614 | 30,656 |
Net Income Per Unit - Basic and Diluted | $327.78 | $5.25 | $400.96 |
Distributions Per Unit | $0 | $0 | $600 |
Statement_of_Changes_in_Member
Statement of Changes in Members' Equity (USD $) | Total | Parent [Member] | Noncontrolling Interest [Member] |
Members' Equity at Oct. 31, 2010 | $55,862,882 | $55,862,882 | $0 |
Distribution Made to Member or Limited Partner, Cash Distributions Paid | -18,393,600 | -18,393,600 | 0 |
Net Income (Loss) Attributable to Noncontrolling Interest | 0 | ' | ' |
Net Income (Loss) Attributable to Parent | 12,291,856 | 12,291,856 | 0 |
Members' Equity at Oct. 31, 2011 | 49,761,138 | 49,761,138 | 0 |
Net Income (Loss) Attributable to Noncontrolling Interest | 0 | ' | ' |
Stock Repurchased During Period, Value | -66,420 | -66,420 | 0 |
Net Income (Loss) Attributable to Parent | 160,607 | 160,607 | 0 |
Members' Equity at Oct. 31, 2012 | 49,855,325 | 49,855,325 | 0 |
Income (Loss) from Continuing Operations, Including Portion Attributable to Noncontrolling Interest | 7,159,741 | 0 | 7,159,741 |
Distribution Made to Member or Limited Partner, Cash Distributions Paid | 5,509,080 | ' | ' |
Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders | -38,336 | 0 | -38,336 |
Noncontrolling Interest, Increase from Equity Issuance or Sale of Parent Equity Interest | 832,500 | 0 | 832,500 |
Net Income (Loss) Attributable to Noncontrolling Interest | 526,752 | 0 | 526,752 |
Net Income (Loss) Attributable to Parent | 10,032,021 | 10,032,021 | 0 |
Members' Equity at Oct. 31, 2013 | $68,368,003 | $59,887,346 | $8,480,657 |
Statement_of_Changes_in_Member1
Statement of Changes in Members' Equity parenthetical (USD $) | 12 Months Ended |
Oct. 31, 2013 | |
Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders | ($38,336) |
Stock Repurchased During Period, Shares | 50 |
Noncontrolling Interest [Member] | ' |
Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders | ($38,336) |
Statements_of_Cash_Flows
Statements of Cash Flows (USD $) | 12 Months Ended | ||
Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 | |
Cash Flows from Operating Activities | ' | ' | ' |
Net Income (Loss) | $10,032,021 | $160,607 | $12,291,856 |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 10,558,773 | 160,607 | 12,291,856 |
Adjustments to reconcile net income to net cash provided by operations: | ' | ' | ' |
Depreciation and amortization | 5,549,204 | 4,161,021 | 3,988,606 |
Change in fair value of derivative instruments | -155,563 | 1,651,799 | -1,271,242 |
Change in operating assets and liabilities | ' | ' | ' |
Restricted cash | 611,205 | 1,009,000 | -601,500 |
Commodity derivative instruments | 185,113 | -1,202,186 | 1,619,692 |
Accounts receivable | 3,910,961 | -3,578,987 | -613,338 |
Inventory | 1,946,049 | -3,397,758 | -4,284,741 |
Prepaid expenses and other current assets | 176,061 | 12,274 | -60,904 |
Accounts payable | -5,995 | 286,878 | 871,671 |
Accrued liabilities | -59,920 | -56,606 | -60,514 |
Net Cash Provided by Operating Activities | 22,715,888 | -953,958 | 11,879,586 |
Cash Flows from Investing Activities | ' | ' | ' |
Proceeds from (payments for) short-term investments | 0 | 0 | 3,500,000 |
Payments for capital expenditures | -2,636,048 | -4,083,943 | -3,550,020 |
Payments for construction in process | 540,000 | 0 | 0 |
Proceeds from sale of equipment | 0 | -3,467,199 | 0 |
Payments to Acquire Businesses, Net of Cash Acquired | -6,977,236 | 0 | 0 |
Net Cash Used in Investing Activities | -9,073,284 | -7,551,142 | -50,020 |
Cash Flows from Financing Activities | ' | ' | ' |
Payments on revolving line of credit | 0 | 5,490,926 | 0 |
Payments on long-term debt | -16,840,158 | -101,338 | -232,431 |
Restricted cash | 3,670,500 | 0 | 0 |
Payments for Repurchase of Common Stock | 0 | -66,420 | 0 |
Member distributions paid | 0 | -9,196,800 | -9,196,800 |
Net Cash Used in Financing Activities | -13,169,658 | -3,873,632 | -9,429,231 |
Net Increase in Cash | 472,946 | -12,378,732 | 2,400,335 |
Cash - Beginning of Period | 685,828 | 13,064,560 | 10,664,225 |
Cash - End of Period | 1,158,774 | 685,828 | 13,064,560 |
Cash paid during the period for: | ' | ' | ' |
Interest Expense | 388,306 | 44,002 | 6,857 |
Supplemental Disclosure of Noncash Investing and Financing Activities | ' | ' | ' |
Conversion of subsidiary subordinated convertible notes | 934,500 | 0 | 0 |
Distributions to non-controlling interest in accrued expenses | 38,336 | 0 | 0 |
Member distributions included in distributions payable | 0 | 0 | 9,196,800 |
Capital expenditures included in accounts payable | $605,750 | $1,129,000 | $0 |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | |
Oct. 31, 2013 | ||
Summary of Significant Accounting Policies [Abstract] | ' | |
Summary of Significant Account Policies | ' | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||
Principles of Consolidation | ||
The accompanying consolidated financial statements consolidate the operating results and financial position of Granite Falls Energy, LLC (“GFE” or the “Company”), and its wholly owned subsidiary, Project Viking, L.L.C. ("Project Viking") which owns 60.8% of Heron Lake BioEnergy, LLC (“HLBE”). The remaining 39.2% ownership of HLBE is included in the consolidated financial statements as a non-controlling interest. All intercompany balances and transactions are eliminated in consolidation. The acquisition occurred on July 31, 2013 and therefore the consolidated statements of operations only include the three month period ended October 31, 2013 of HLBE. See Note 3 for details of acquisition. | ||
Nature of Business | ||
GFE is a Minnesota limited liability company currently producing fuel-grade ethanol, distillers grains, and crude corn oil near Granite Falls, Minnesota and sells these products, pursuant to marketing agreements, throughout the continental United States and on the international market. GFE's plant has an approximate annual production capacity of 60 million gallons, but is currently permitted to produce up to 70 million gallons of undenatured ethanol on a twelve month rolling sum basis. | ||
HLBE is a Minnesota limited liability company currently producing fuel-grade ethanol, distillers grains, and crude corn oil near Heron Lake, Minnesota and sells these products, pursuant to marketing agreements, throughout the continental United States. HLBE's plant has an approximate annual production capacity of 55 million gallons, but is currently permitted to produce up to 59.2 million gallons. | ||
Fiscal Reporting Period | ||
The Company has adopted a fiscal year ending October 31 for financial reporting purposes. | ||
Accounting Estimates | ||
Management uses estimates and assumptions in preparing these financial statements in accordance with generally accepted accounting principles in the United States of America. Those estimates and assumptions affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities, and the reported revenues and expenses. The Company uses estimates and assumptions in accounting for the following significant matters, among others: economic lives of property, plant, and equipment, valuation of commodity derivatives and inventory, and the assumptions used in the impairment analysis of long-lived assets and the assumptions used to estimate the fair value of acquired assets and liabilities, which includes goodwill. Actual results may differ from previously estimated amounts, and such differences may be material to our financial statements. The Company periodically reviews estimates and assumptions, and the effects of revisions are reflected in the period in which the revision is made. | ||
Cash | ||
The Company maintains its accounts primarily at two financial institutions, of which one is a member of the Company. At times throughout the year, the Company's cash balances may exceed amounts insured by the Federal Deposit Insurance Corporation. The Company does not believe it is exposed to any significant credit risk on its cash balances. | ||
Restricted Cash | ||
The Company has restricted cash balances relating to its margin requirements with the Company's commodity derivative broker based on open commodity contracts discussed in Note 5. | ||
Accounts Receivable | ||
Credit terms are extended to customers in the normal course of business. The Company performs ongoing credit evaluations of its customers' financial condition and, generally, requires no collateral. | ||
Accounts receivable are recorded at their estimated net realizable value. Accounts are considered past due if payment is not made on a timely basis in accordance with the Company's credit terms. Accounts considered uncollectible are written off. The Company follows a policy of providing an allowance for doubtful accounts; however, based on historical experience, and its evaluation of the current status of receivables, the Company is of the belief that such accounts will be collectible in all material respects and thus an allowance was not necessary at October 31, 2013 or 2012. It is at least possible this estimate will change in the future. | ||
Inventory | ||
Inventory is stated at the lower of cost or market. Cost for all inventories is determined using the first in first out method (FIFO). Market is based on current replacement values except that it does not exceed net realizable values and it is not less than net realizable values reduced by allowances from normal profit margin. Inventory consists of raw materials, work in process, finished goods, and spare parts. Corn is the primary raw material along with other raw materials. Finished goods consist of ethanol, distillers grains, and corn oil. | ||
Property, Plant, and Equipment | ||
Property, plant, and equipment are stated at cost. Depreciation is provided over the following estimated useful lives by use of the straight-line method. | ||
Asset Description | Years | |
Land improvements | 5-20 years | |
Buildings | 10-30 years | |
Grain handling equipment | 5-15 years | |
Mechanical equipment | 5-15 years | |
Equipment | 5-10 years | |
Maintenance and repairs are expensed as incurred; major improvements and betterments are capitalized. Construction in progress expenditures will be depreciated using the straight-line method over their estimated useful lives once the assets are placed into service. Depreciation expense totaled approximately $5,937,000, $4,161,000, and $3,979,000 for the fiscal years ended October 31, 2013, 2012, and 2011, respectively. | ||
Long-Lived Assets | ||
Long-lived assets, such as property, plant, and equipment, and purchased intangible assets subject to amortization, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If circumstances require a long-lived asset be tested for possible impairment, the Company first compares undiscounted cash flows expected to be generated by an asset to the carrying value of the asset. If the carrying value of the long-lived asset is not recoverable on an undiscounted cash flow basis, impairment is recognized to the extent that the carrying value exceeds its fair value. Fair value is determined through various valuation techniques including, but not limited to, discounted cash flow models, quoted market values and third-party independent appraisals, as considered necessary. No indicators of impairment existed during fiscal 2013 or 2012 that would have triggered impairment testing, and therefore, no impairment expense was recorded during 2013 or 2012. | ||
Revenue Recognition | ||
The Company generally sells ethanol and related products pursuant to marketing agreements. Revenues from the production of ethanol and the related products are recorded when the customer has taken title and assumed the risks and rewards of ownership, prices are fixed or determinable and collectability is reasonably assured. Ethanol and related products are generally shipped free on board (FOB) shipping point. The Company believes there are no ethanol sales, during any given month, which should be considered contingent and recorded as deferred revenue. | ||
In accordance with the Company's agreements for the marketing and sale of ethanol and related products, marketing fees and commissions due to the marketers are deducted from the gross sales price as earned. These fees and commissions are recorded net of revenues, as they do not provide an identifiable benefit that is sufficiently separable from the sale of ethanol and related products. Shipping costs paid by the Company to the marketer in the sale of ethanol are not specifically identifiable and, as a result, are recorded based on the net selling price reported to the Company from the marketer. Shipping costs incurred by the Company in the sale of distillers grains and corn oil are included in cost of goods sold. | ||
Fair Value of Financial Instruments | ||
The Company's accounting for fair value measurements of assets and liabilities that are recognized or disclosed at fair value in the financial statements on a recurring or nonrecurring basis adhere to the Financial Accounting Standards Board (FASB) fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The Company has adopted guidance for fair value measurement related to nonfinancial items that are recognized and disclosed at fair value in the financial statements on a nonrecurring basis. The guidance establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to measurements involving significant unobservable inputs (Level 3 measurements). | ||
The three levels of the fair value hierarchy are as follows: | ||
• | Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. | |
• | Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability. | |
• | Level 3 inputs are unobservable inputs for the asset or liability. | |
The level in the fair value hierarchy within which a fair measurement in its entirety falls is based on the lowest level input that is significant to the fair value measurement in its entirety. | ||
Except for those assets and liabilities which are required by authoritative accounting guidance to be recorded at fair value in our balance sheets, the Company has elected not to record any other assets or liabilities at fair value. No events occurred during the fiscal years ended October 31, 2013 or 2012 that required adjustment to the recognized balances of assets or liabilities, which are recorded at fair value on a nonrecurring basis. | ||
The carrying value of cash, restricted cash, accounts receivable, accounts payable and accrued liabilities approximates fair value due to the short maturity of these instruments. The Company obtains fair value measurements from an independent pricing service for corn derivative contracts. The fair value measurements consider observable data that may include dealer quotes and live trading levels from the Chicago Board of Trade and New York Mercantile Exchange markets. The fair value of the long-term debt is estimated based on anticipated interest rates which management believes would currently be available to the Company for similar issues of debt, taking into account the current credit risk of the Company and other market factors. The Company believes the carrying value of the debt instruments approximate fair value. | ||
Derivative Instruments | ||
From time to time the Company enters into derivative transactions to hedge its exposures to commodity price fluctuations. The Company is required to record these derivatives in the balance sheets at fair value. | ||
In order for a derivative to qualify as a hedge, specific criteria must be met and appropriate documentation maintained. Gains and losses from derivatives that do not qualify as hedges, or are undesignated, must be recognized immediately in earnings. If the derivative does qualify as a hedge, depending on the nature of the hedge, changes in the fair value of the derivative will be either offset against the change in fair value of the hedged assets, liabilities, or firm commitments through earnings or recognized in other comprehensive income until the hedged item is recognized in earnings. Changes in the fair value of undesignated derivatives are recorded in earnings. | ||
Additionally, the Company is required to evaluate its contracts to determine whether the contracts are derivatives. Certain contracts that literally meet the definition of a derivative may be exempted 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 accounting and reporting requirements, and therefore, are not marked to market in our financial statements. | ||
In order to reduce the risks caused by market fluctuations, the Company occasionally hedges its anticipated corn, natural gas, and denaturant purchases and ethanol sales by entering into options and futures contracts. These contracts are used with the intention to fix the purchase price of anticipated requirements for corn in the Company's ethanol production activities and the related sales price of ethanol. The fair value of these contracts is based on quoted prices in active exchange-traded or over-the-counter market conditions. Although the Company believes its commodity derivative positions are economic hedges, none have been formally designated as a hedge for accounting purposes and derivative positions are recorded on the balance sheet at their fair market value, with changes in fair value recognized in current period earnings or losses. The Company does not enter into financial instruments for trading or speculative purposes. | ||
The Company has adopted authoritative guidance related to “Derivatives and Hedging,” and has included the required enhanced quantitative and qualitative disclosure about objectives and strategies for using derivatives, quantitative disclosures about fair value amounts of gains and losses from derivative instruments, and disclosures about credit-risk-related contingent features in derivative agreements. See further discussion in Note 5. | ||
Income Taxes | ||
The Company is treated as a partnership for federal and state income tax purposes, and generally does not incur income taxes. Instead its earnings and losses are included in the income tax returns of its members. Therefore, no provision or liability for federal or state income taxes has been included in these financial statements. The Company had no significant uncertain tax positions as of October 31, 2013 or 2012. For years before fiscal 2011, the Company is no longer subject to U.S. Federal or state income tax examinations. | ||
Environmental Liabilities | ||
The Company's operations are subject to environmental laws and regulations adopted by various governmental entities in the jurisdiction in which it operates. These laws require the Company to investigate and remediate the effects of the release or disposal of materials at its location. 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 liability is probable and the costs can be reasonably estimated. No expense has been recorded for the fiscal years ended October 31, 2013, 2012, or 2011. | ||
Net Income per Unit | ||
Basic net income per unit is computed by dividing net income by the weighted average number of members' units outstanding during the period. Diluted net income per unit is computed by dividing net income by the weighted average number of members' units and members' unit equivalents outstanding during the period. There were no member unit equivalents outstanding during the periods presented; accordingly, for all periods presented, the calculations of the Company's basic and diluted net income per unit are the same. | ||
Business Combinations | ||
The Company allocates the total purchase price of a business combination to the assets acquired and the liabilities assumed based on their estimated fair values at the acquisition date, with the excess purchase price recorded as goodwill. The Company used current market data to assist them in determining the fair value of the assets acquired and liabilities assumed, including goodwill, based on recognized business valuation methodology. Subsequent to the acquisition but not to exceed one year from the acquisition date, the Company will record any material adjustments retrospectively to the initial estimate based on new information obtained about facts and circumstances that existed as of the acquisition date. The Company expenses any acquisition-related costs as incurred in connection with business combinations. An income, market or cost valuation method may be utilized to estimate the fair value of the assets acquired or liabilities assumed in a business combination. The income valuation method represents the present value of future cash flows over the life of the asset using (i) discrete financial forecasts, which rely on management's estimates of revenue and operating expenses, (ii) long-term growth rates, and (iii) an appropriate discount rate. The market valuation method uses prices paid for a reasonably similar asset by other purchasers in the market, with adjustments relating to any differences between the assets. The cost valuation method is based on the replacement cost of a comparable asset at prices at the time of the acquisition reduced for depreciation of the asset. | ||
Goodwill | ||
Goodwill represents the cost in excess of the fair value of net assets acquired. The Company conducts impairment assessments annually or when events indicate a triggering event has occurred. |
Risks_and_Uncertainties
Risks and Uncertainties | 12 Months Ended |
Oct. 31, 2013 | |
Item 2 Risks and Uncertainties [Abstract] | ' |
Risks and Uncertainties | ' |
RISKS AND UNCERTAINTIES | |
The Company has certain risks and uncertainties that it experiences during volatile market conditions. These volatilities can have a severe impact on operations. The Company's revenues are derived from the sale and distribution of ethanol, distillers grains, and corn oil to customers primarily located in the United States. Corn for the production process is supplied to our plant primarily from local agricultural producers and from purchases on the open market. Ethanol sales typically average 80-85% of total revenues and corn costs typically average 70-80% of cost of goods sold. | |
The Company's operating and financial performance is largely driven by the prices at which they sell ethanol and the net expense of corn. The price of ethanol is influenced by factors such as supply and demand, the weather, government policies and programs, and unleaded gasoline prices and the petroleum markets as a whole. Excess ethanol supply in the market, in particular, puts downward pressure on the price of ethanol. Our largest cost of production is corn. The cost of corn is generally impacted by factors such as supply and demand, the weather, government policies and programs, and our risk management program used to protect against the price volatility of these commodities. |
Acquisition_Notes
Acquisition (Notes) | 12 Months Ended | |||||||||
Oct. 31, 2013 | ||||||||||
Equity Method Investments and Joint Ventures [Abstract] | ' | |||||||||
Schedule of Business Acquisitions, by Acquisition [Table Text Block] | ' | |||||||||
Cash | $ | 1,022,764 | ||||||||
Restricted cash | 510,955 | |||||||||
Accounts receivable | 3,107,121 | |||||||||
Inventory | 2,303,157 | |||||||||
Prepaid expenses | 1,107,025 | |||||||||
Property, plant, and equipment | 51,625,774 | |||||||||
Other assets | 924,252 | |||||||||
Goodwill | 1,372,473 | |||||||||
Total assets acquired | $ | 61,973,521 | ||||||||
Accounts payable | $ | (936,893 | ) | |||||||
Accrued expenses | (399,623 | ) | ||||||||
Notes payable | (36,452,764 | ) | ||||||||
Non-controlling interest | (7,159,741 | ) | ||||||||
Net purchase price | $ | 17,024,500 | ||||||||
BUSINESS COMBINATION | ||||||||||
On July 31, 2013, the Company acquired 63.3% of the outstanding membership units of Heron Lake BioEnergy, LLC (“HLBE”) through its purchase of 100% of the membership units of Project Viking, L.L.C. (“Project Viking”), for a total purchase price of $17,024,500. HLBE is a 50 million gallon per year ethanol plant located in Heron Lake, Minnesota. Project Viking was formed by the previous investor to only hold equity interests in HLBE and the debt incurred to obtain those interests and did not have any other assets or liabilities. The previous owner of Project Viking also owned approximately 12.82% of the outstanding membership units of the Company at July 31, 2013. | ||||||||||
Immediately following the closing, the Company, through its 100% ownership of Project Viking, owned 24,080,949 Class A units and 15,000,000 Class B units of HLBE, for a total of 39,080,949 units, or 63.3% of the 61,697,104 outstanding units. As a result, under HLBE's member control agreement, Project Viking is entitled to appoint five (5) of the nine (9) governors to HLBE's board of governors. | ||||||||||
On July 31, 2013, the Company entered into a Management Services Agreement with HLBE. Under the Management Services Agreement, the Company agreed to supply its own personnel to act as part-time officers and managers of HLBE for the positions of Chief Executive Officer, Chief Financial Officer, and Commodity Risk Manager. The initial term of the Management Services Agreement is three years. The Company will be paid $35,000 per month by HLBE for the first year of the Management Services Agreement. During years two and three of the agreement, HLBE agreed to pay the Company 50% of the total salary, bonuses, and other expenses and costs incurred by the Company for the three management positions. At the expiration of the initial term, the Management Services Agreement will automatically renew for successive one-year terms unless and until the Company or HLBE gives the other party 90-days written notice of termination prior to expiration of the initial term or the start of a renewal term. | ||||||||||
The acquisition date fair value of the consideration transferred consisted of the following: | ||||||||||
Cash | $ | 8,000,000 | ||||||||
Note payable | 4,024,500 | |||||||||
Assumption of note payable to Granite Falls Bank | 5,000,000 | |||||||||
Total Consideration | $ | 17,024,500 | ||||||||
The assets and liabilities of Project Viking were recorded at their respective estimated fair values as of the date of the acquisition using generally accepted accounting principles for business combinations. The Company used a combination of the market and cost approaches that included unobservable level 3 inputs, to estimate the fair values of the assets acquired and liabilities assumed. The fair value of the long-term debt acquired was determined based on the present value of future contractual cash flows discounted at an interest rate that reflects the current borrowing rates available to the Company for loans with similar terms. The fair market value of the debt assumed was approximately $36.5 million and resulted in a debt premium balance of approximately $2.3 million being recorded as of the acquisition date. The debt premium is amortized as a reduction of interest expense over the term of the debt using the effective interest method. The value of the 36.66% noncontrolling interest was determined by using the fair value method by using the most recent arms-length transaction of HLBE's units that did not include a control premium. The goodwill is attributable to the synergies expected to arise after the acquisition in the purchasing of inputs and the sale of outputs. Goodwill is not expected to be deductible for tax purposes. The fair value of the assets acquired includes account receivables of approximately $3,107,000, all of which are expected to be collectible. | ||||||||||
Subsequent to the initial purchase price allocation and within the one year measurement period, new information was obtained about facts and circumstances that existed as of the acquisition date. As such, the purchase price allocation of the HLBE acquisition was retroactively adjusted to include the effect of this measurement period adjustment. An adjustment of approximately $273k was recorded to adjust the fair value of a noncontrolling interest in HLBE, which was adjusted through goodwill during the fourth quarter ended October 31, 2013. The retroactively adjusted purchase price allocation is as follows: | ||||||||||
Cash | $ | 1,022,764 | ||||||||
Restricted cash | 510,955 | |||||||||
Accounts receivable | 3,107,121 | |||||||||
Inventory | 2,303,157 | |||||||||
Prepaid expenses | 1,107,025 | |||||||||
Property, plant, and equipment | 51,625,774 | |||||||||
Other assets | 924,252 | |||||||||
Goodwill | 1,372,473 | |||||||||
Total assets acquired | $ | 61,973,521 | ||||||||
Accounts payable | $ | (936,893 | ) | |||||||
Accrued expenses | (399,623 | ) | ||||||||
Notes payable | (36,452,764 | ) | ||||||||
Non-controlling interest | (7,159,741 | ) | ||||||||
Net purchase price | $ | 17,024,500 | ||||||||
The acquisition occurred on the last day of the Company's fiscal third quarter, therefore the Company consolidated three months of HLBE's revenues and expenses in the consolidated statements of operations. HLBE contributed revenues of $38,560,522 and earnings of $1,305,044 to the Company for the three month period from August 1, 2013 to October 31, 2013. The net income attributable to non-controlling interests for the year ended October 31, 2013 totaled approximately $527,000. | ||||||||||
The following represents the unaudited pro forma consolidated statement of operations as if the transaction occurred at the beginning of the following periods: | ||||||||||
For the years ended | ||||||||||
October 31, 2013 | October 31, 2012 | 31-Oct-11 | ||||||||
Unaudited | Unaudited | Unaudited | ||||||||
Revenues | $ | 349,304,556 | $ | 343,821,978 | $ | 320,641,864 | ||||
Net income, including portion attributable to non-controlling interest of $712,289, ($20,702,684), and $361,351, respectively | $ | 4,864,820 | $ | (31,794,779 | ) | $ | 13,612,987 | |||
Earnings per share (30,606, 30,614, and 30,656 weighted average units outstanding - basic and diluted, respectively) | $ | 116.16 | $ | (617.00 | ) | $ | 412.75 | |||
The pro forma financial information is presented for informational purposes only and is not indicative of the results of operations that would have been achieved if the acquisition had taken place at the beginning of each of the periods presented. These amounts have been calculated after adjusting the results of HLBE to reflect the additional amortization of the debt premium that would have occurred assuming the fair value adjustment to long-term debt had been applied at the beginning of each period presented. |
Inventory
Inventory | 12 Months Ended | ||||||
Oct. 31, 2013 | |||||||
Inventory [Abstract] | ' | ||||||
Inventory | ' | ||||||
INVENTORY | |||||||
Inventories consist of the following: | |||||||
October 31, 2013 | October 31, 2012 | ||||||
Raw materials | $ | 4,652,465 | $ | 8,977,820 | |||
Spare parts | 1,636,466 | 584,011 | |||||
Work in process | 1,643,574 | 1,150,239 | |||||
Finished goods | 4,437,772 | 1,557,546 | |||||
Totals | $ | 12,370,277 | $ | 12,013,169 | |||
The Company performs a lower of cost or market analysis on inventory to determine if the market values of certain inventories are less than their carrying value, which is attributable primarily to decreases in market prices of corn and ethanol. Based on the lower of cost or market analysis, the Company did not record a lower of cost or market charge on certain inventories for the fiscal years ended October 31, 2013 or 2011. The Company recorded a lower of cost or market charge on certain inventories for the fiscal year ended October 31, 2012 for approximately $77,000. |
Derivative_Instruments
Derivative Instruments | 12 Months Ended | |||||||||||||||
Oct. 31, 2013 | ||||||||||||||||
Derivative [Line Items] | ' | |||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Text Block] | ' | |||||||||||||||
DERIVATIVE INSTRUMENTS | ||||||||||||||||
As of October 31, 2013, the total notional amount of the Company's outstanding corn derivative instruments was approximately 1,125,000 bushels that were entered into to hedge forecasted corn purchases through December 2013. There may be offsetting positions that are not shown on a net basis that could lower the notional amount of positions outstanding as disclosed above. | ||||||||||||||||
The following tables provide details regarding the Company's derivative instruments at October 31, 2013, none of which were designated as hedging instruments: | ||||||||||||||||
Balance Sheet location | Assets | Liabilities | ||||||||||||||
Corn contracts | Commodity derivative instruments | $ | — | $ | (75,113 | ) | ||||||||||
Totals | $ | — | $ | (75,113 | ) | |||||||||||
In addition, as of October 31, 2013 the Company maintained $393,750 of restricted cash related to margin requirements for the Company's commodity derivative instrument positions. | ||||||||||||||||
As of October 31, 2012, the total notional amount of the Company's outstanding corn derivative instruments was approximately 1,235,000 bushels that were entered into to hedge forecasted corn purchases through March 2013. There may be offsetting positions that are not shown on a net basis that could lower the notional amount of positions outstanding as disclosed above. | ||||||||||||||||
The following tables provide details regarding the Company's derivative instruments at October 31, 2012, none of which were designated as hedging instruments: | ||||||||||||||||
Balance Sheet location | Assets | Liabilities | ||||||||||||||
Corn contracts | Commodity derivative instruments | $ | — | $ | (45,563 | ) | ||||||||||
Totals | $ | — | $ | (45,563 | ) | |||||||||||
In addition, as of October 31, 2012 the Company maintained approximately $494,000 of restricted cash related to margin requirements for the Company's derivative instrument positions. | ||||||||||||||||
The following tables provide details regarding the gains and (losses) from Company's derivative instruments in statements of operations, none of which are designated as hedging instruments: | ||||||||||||||||
Statement of | Fiscal Years Ended October 31, | |||||||||||||||
Operations location | 2013 | 2012 | 2011 | |||||||||||||
Ethanol contracts | Revenue | $ | — | $ | — | $ | (4,626 | ) | ||||||||
Corn contracts | Cost of Goods Sold | 155,563 | (1,651,799 | ) | 1,280,413 | |||||||||||
Natural gas contracts | Cost of Goods Sold | — | — | (4,545 | ) | |||||||||||
Total gain (loss) | $ | 155,563 | $ | (1,651,799 | ) | $ | 1,271,242 | |||||||||
Revolving_Line_of_Credit_Long_
Revolving Line of Credit & Long Term Debt | 12 Months Ended | ||||||
Oct. 31, 2013 | |||||||
Debt Disclosure [Abstract] | ' | ||||||
Debt Disclosure [Text Block] | ' | ||||||
Granite Falls Energy: | |||||||
GFE has two credit facilities with a lender. The first is a seasonal revolving operating loan facility in the amount of $5,660,000. The second is a revolving term loan facility in the amount of $18,000,000. However, the amount available for borrowing under this facility reduces by $2,000,000 semi-annually beginning September 1, 2014, with final payment due March 1, 2018. | |||||||
The interest rates for both facilities are based on the bank's "One Month LIBOR Index Rate," plus 2.8% and 3.05% on the seasonal and revolving term commitments, respectively. The facilities are available through March 31, 2017 and March 31, 2018, respectfully. The outstanding balance on the revolving term loan on October 31, 2013 and October 31, 2012 was $2,513,674 and $4,891,952, respectively. GFE currently has no outstanding balance on the seasonal revolving operating loan facility. | |||||||
The credit facilities require GFE to comply with certain financial covenants. As of October 31, 2013 and October 31, 2012, GFE was in compliance with these financial covenants and expects to be in compliance throughout fiscal 2014. | |||||||
The credit facilities are secured by substantially all assets of the Company. There are no savings account balance collateral requirements as part of this credit facility. | |||||||
At October 31, 2013, GFE also had letters of credit totaling $337,928 with the bank as part of a credit requirement of Northern Natural Gas. These letters of credit were reduced by $49,000 in November 2013. | |||||||
As part of the acquisition of Project Viking discussed in Note 3, GFE assumed a note payable with Granite Falls Bank with a principal amount of $5,000,000. This note was paid in full on August 19, 2013. | |||||||
Also, as part of the acquisition of Project Viking discussed in Note 3, GFE issued a note payable to the previous owners of Project Viking with a principal amount of $4,024,500. The note matured on August 30, 2013 and interest accrued on the note at a rate of 4% per annum. This note was paid in full on August 26, 2013. | |||||||
Heron Lake BioEnergy: | |||||||
Term Note Payable | |||||||
On May 17, 2013, HLBE renegotiated its term loan with AgStar in the amount of $17,400,000. HLBE must make equal monthly payments of principal and interest on the term loan based on a 10-year amortization, provided the entire principal balance and accrued and unpaid interest on the term loan is due and payable in full on the maturity date of September 1, 2016. In addition, HLBE is required to make additional payments annually on debt for up to 25%of the excess cash flow, as defined by the agreement, up to $2,000,000 per year. Through September 1, 2014, the loan bears interest at 5.75% as long as HLBE is in compliance with their debt covenants. | |||||||
On September 1, 2014, the interest term loan will be adjusted to LIBOR plus 3.50% but not less than 5%. The loan agreements are secured by substantially all business assets and are subject to various financial and non-financial covenants that limit distributions and debt and require minimum debt service coverage, net worth, and working capital requirements. HLBE was in compliance with the covenants of its master loan agreement with AgStar as of October 31, 2013. | |||||||
Revolving Term Note | |||||||
HLBE also obtained a three-year term revolving loan commitment in the amount of $20,500,000, under which AgStar agreed to make periodic advances to HLBE up to this original amount until September 1, 2016. Amounts borrowed by HLBE under the term revolving loan and repaid or prepaid may be re-borrowed at any time prior to maturity date of the term revolving loan, provided that outstanding advances may not exceed the amount of the term revolving loan commitment. Amounts outstanding on the term revolving loan bear interest at a variable rate equal to the greater of a LIBOR rate plus 3.50% or 5.0%, payable monthly. HLBE also pays an unused commitment fee on the unused portion of the term revolving loan commitment at the rate of 0.35% per annum, payable in arrears in quarterly installments during the term of the term revolving loan. Under the terms of the new agreement, the term revolving loan commitment is scheduled to decline by $2,000,000 annually, beginning on October 31, 2013 and each anniversary date thereafter. The maturity date of the term revolving loan is September 1, 2016. | |||||||
Subordinated Convertible Debt | |||||||
On May 17, 2013, HLBE’s previous Board of Governors loaned the Company approximately $1,400,000 as part of the convertible secured debt offering. An additional $3,700,000 was raised as part of a convertible debt offering during September 2013. The convertible secured debt is subordinated to the AgStar debt. The notes bear interest at 7.25% and are due in May 2018. On October 1, 2014, or immediately prior to the sale of all or effectively all of HLBE assets, each note is convertible to Class A stock at a rate of $0.30 per Class A unit. HLBE reserves the right to issue Class B units upon conversion if the principal balance of the convertible debt exceeds the authorized Class A units at the conversion rate. At the issuance, each debt holder had the option to convert to Class A units. As a result, holders elected to convert $934,500 in September for 3,115,000 Class A units. | |||||||
Long-term debt consists of the following: | |||||||
October 31, 2013 | October 31, 2012 | ||||||
GRANITE FALLS ENERGY: | |||||||
Capital One Shuttlewagon Railcar Mover (5 year term at 3.875%, due in monthly installments of $10,995) | $ | 382,918 | $ | 497,636 | |||
Revolving Term Loan | 2,513,674 | 4,891,952 | |||||
HERON LAKE BIOENERGY: | |||||||
Term note payable to lending institution (including premium of approximately $1.74m) | 18,317,800 | — | |||||
Revolving term note payable to lending institution (including premium of approximately $283k) | 6,263,158 | — | |||||
Assessment payable as part of water treatment agreement, due in semi-annual installments of $189,393 with interest at 6.55%, enforceable by statutory lien, with the final payment due in 2021. The Company made deposits for one years' worth of debt service payments that are held on deposit to be applied with the final payments of the assessment. | 2,246,771 | — | |||||
Assessment payable as part of water treatment agreement, due in semi-annual installments of $25,692 with interest at 0.50%, enforceable by statutory lien, with the final payment due in 2016. | 152,698 | — | |||||
Assessment payable as part of water supply agreement, due in monthly installments of $3,942 with interest at 8.73%, enforceable by statutory lien, with the final payment due in 2019. | 205,209 | — | |||||
Note payable to electrical company with monthly payments of $6,250 with a 1% maintenance fee due each October, due September 2017. The electrical company is a member of the Company. | 293,750 | — | |||||
Note payable to a lending institution for the construction of the pipeline assets initially due in December 2011, converted in February 2012 to a term loan with a three year repayment period. Interest is at 5.29% and the note, along with the line of credit in Note 8, is secured by substantially all assets of Agrinatural. | 1,013,132 | — | |||||
Note payable to noncontrolling interest member of Agrinatural. Interest is at 5.425%, with a maturity date of October 2014. | 300,000 | — | |||||
Equipment payable on corn oil separation equipment from a vendor. The Company pays approximately $40,000 per month conditioned upon revenue generated from the corn oil equipment. The monthly payment includes implicit interest of 5.57% until maturity in May 2015 and the note is secured by the equipment. | 640,653 | — | |||||
Subordinated Convertible Debt with interest of 7.25% paid on a semi-annual basis. | 4,143,000 | — | |||||
Totals | 36,472,763 | 5,389,588 | |||||
Less amounts due within one year | 3,490,808 | 114,718 | |||||
Net long-term debt | $ | 32,981,955 | $ | 5,274,870 | |||
Estimated maturities of long-term debt at October 31, 2013 are as follows: | |||||||
2014 | $ | 3,490,808 | |||||
2015 | 2,846,762 | ||||||
2016 | 21,602,578 | ||||||
2017 | 522,563 | ||||||
2018 | 7,022,813 | ||||||
After 2018 | 987,239 | ||||||
Total long-term debt | $ | 36,472,763 | |||||
Leases
Leases | 12 Months Ended | ||||
Oct. 31, 2013 | |||||
Leases [Abstract] | ' | ||||
Leases | ' | ||||
LEASES | |||||
GFE has a lease agreement with a leasing company for 75 hopper cars to assist with the transport of distiller's grains by rail. In November 2010, the original lease was renewed for an additional five-year period. Based on final manufacturing and interest costs, the Company will pay the leasing company $620 per month plus $0.03 per mile traveled in excess of 36,000 miles per year. Rent expense for these leases was $557,000, $552,000 and $553,000 for the fiscal years ended October 31, 2013, 2012 and 2011, respectively. | |||||
GFE has lease agreements with three leasing companies for 176 rail car leases for the transportation of the Company's ethanol with various maturity dates through October 2017. The rail car lease payments are due monthly in the aggregate amount of approximately $121,000. Rent expense for these leases was $1,437,000, $1,278,000 and $1,171,000 for the fiscal years ended October 31, 2013, 2012 and 2011, respectively. | |||||
HLBE leases equipment, primarily rail cars, under operating leases through 2017. Rent expense for fiscal 2013, 2012, and 2011 was approximately $1,800,000, $2,200,000, and $1,800,000, respectively. | |||||
At October 31, 2013, the Company had the following commitments for payments of rentals under operating leases which at inception had a non-cancelable term of more than one year: | |||||
November 1, 2013 to October 31, 2014 | $ | 2,602,286 | |||
November 1, 2014 to October 31, 2015 | 1,640,775 | ||||
November 1, 2015 to October 31, 2016 | 940,910 | ||||
November 1, 2016 to October 31, 2017 | 474,004 | ||||
November 1, 2017 to October 31, 2018 | 60,816 | ||||
Total minimum lease commitments | $ | 5,718,791 | |||
Fair_Value
Fair Value | 12 Months Ended | |||||||||||||||
Oct. 31, 2013 | ||||||||||||||||
Fair Value [Abstract] | ' | |||||||||||||||
Fair Value | ' | |||||||||||||||
FAIR VALUE | ||||||||||||||||
The following table provides information on those derivative assets measured at fair value on a recurring basis at October 31, 2013: | ||||||||||||||||
Carrying Amount in Balance Sheet | Fair Value | Fair Value Measurement Using | ||||||||||||||
31-Oct-13 | 31-Oct-13 | Quoted Prices in Active Markets | Significant Other Observable Inputs | Significant unobservable inputs | ||||||||||||
(Level 1) | (Level 2) | (Level 3) | ||||||||||||||
Financial Liabilities: | ||||||||||||||||
Derivative Instruments | $ | (75,113 | ) | $ | (75,113 | ) | $ | (75,113 | ) | $ | — | $ | — | |||
The following table provides information on those derivative assets measured at fair value on a recurring basis at October 31, 2012: | ||||||||||||||||
Carrying Amount in Balance Sheet | Fair Value | Fair Value Measurement Using | ||||||||||||||
31-Oct-12 | 31-Oct-12 | Quoted Prices in Active Markets | Significant Other Observable Inputs | Significant unobservable inputs | ||||||||||||
(Level 1) | (Level 2) | (Level 3) | ||||||||||||||
Financial Liabilities: | ||||||||||||||||
Derivative Instruments | $ | (45,563 | ) | $ | (45,563 | ) | $ | (45,563 | ) | $ | — | $ | — | |||
We determine the fair value of commodity derivative instruments by obtaining 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 market and New York Mercantile Exchange. |
Members_Equity
Members' Equity | 12 Months Ended |
Oct. 31, 2013 | |
Members' Equity [Abstract] | ' |
Members' Equity | ' |
MEMBERS' EQUITY | |
The Company has one class of membership units. The units have no par value and have identical rights, obligations and privileges. Income and losses are allocated to all members based upon their respective percentage of units held. As of October 31, 2013, 2012 and 2011, the Company had 30,606, 30,606 and 30,656 membership units authorized, issued, and outstanding, respectfully. | |
Subsequent to year end, in December 2013, the Board of Governors declared a cash distribution of $180 per unit or $5,509,080 for unit holders of record as of December 19, 2013. The distribution was paid on December 31, 2013. | |
In December 2011, the Board of Governors exercised its discretion to redeem 50 membership units totaling $66,420 from an investor due to a unique restriction on transfers situation. | |
In October 2011, the Board of Governors declared a cash distribution of $300 per unit or $9,196,800 for unit holders of record as of October 27, 2011. The distribution was paid on December 15, 2011. | |
In November 2010, the Board of Governors declared a cash distribution of $300 per unit or $9,196,800 for unit holders of record as of November 23, 2010. The distribution was paid on December 15, 2010. |
Employee_Benefit_Plans
Employee Benefit Plans | 12 Months Ended |
Oct. 31, 2013 | |
Employee Benefit Plans [Abstract] | ' |
Employee Benefit Plans | ' |
EMPLOYEE BENEFIT PLANS | |
The Company has a defined contribution plan available to all of its qualified employees. The Company contributes a match of 50% of the participant's salary deferral up to a maximum of 3% of the employee's salary. Company contributions totaled approximately $50,000, $51,000, and $46,000 for the fiscal years ended October 31, 2013, 2012, and 2011, respectively. |
Income_Taxes
Income Taxes | 12 Months Ended | ||||||
Oct. 31, 2013 | |||||||
Income Taxes [Abstract] | ' | ||||||
Income Tax | ' | ||||||
INCOME TAXES | |||||||
The differences between the financial statement basis and tax basis of assets are based on the following: | |||||||
October 31, 2013 | 31-Oct-12 | ||||||
Financial statement basis of assets | $ | 112,673,222 | $ | 61,133,132 | |||
Organization & start-up costs capitalized for tax purposes, net | 625,720 | 715,109 | |||||
Tax depreciation greater than book depreciation | (24,977,852 | ) | (25,653,678 | ) | |||
Unrealized derivatives losses | 75,113 | 45,563 | |||||
Capitalized inventory | 35,761 | 10,957 | |||||
Net effect of consolidation of acquired subsidiary | (10,396,697 | ) | — | ||||
Income tax basis of assets | $ | 78,035,267 | $ | 36,251,083 | |||
Financial statement basis of liabilities | $ | 44,305,219 | $ | 11,277,807 | |||
Debt premium - acquisition fair value adjustment | (2,023,441 | ) | — | ||||
Income tax basis of liabilities | $ | 42,281,778 | $ | 11,277,807 | |||
There were no material differences between the financial statement basis and tax basis of the Company's liabilities. |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended |
Oct. 31, 2013 | |
Commitments and Contingencies [Abstract] | ' |
Commitments and Contingencies | ' |
COMMITMENTS AND CONTINGENCIES | |
Corn Storage and Grain Handling Agreement and Purchase Commitments | |
GFE has a corn storage and grain handling agreement with Farmers Cooperative Elevator (FCE), a member. Under the agreement, the Company agrees to purchase all of the corn needed for the operation of the plant FCE. The price of the corn purchased will be the bid price FCE establishes for the plant plus a set fee of per bushel. | |
At October 31, 2013, GFE had basis contracts for forward corn purchase commitments with FCE for 350,000 bushels for delivery in November 2013. At October 31, 2013, the Company also had 550,000 bushels of stored corn totaling approximately $2,346,000 with FCE that is included in inventory. | |
The Company purchased approximately $153,216,000 of corn from the member during fiscal 2013, of which approximately $4,002,000 is included in corn payable at October 31, 2013. The Company purchased approximately $148,289,000 of corn from the member during fiscal 2012, of which approximately $1,996,000 is included in corn payable at October 31, 2012. The Company purchased approximately $123,676,000 of corn from the member during fiscal 2011. | |
Ethanol Marketing Agreement | |
GFE currently has an Ethanol Marketing Agreement (“Eco Agreement”) with Eco-Energy, Inc. (“Eco-Energy”). Pursuant to the Eco Agreement, Eco-Energy agrees to purchase the entire ethanol output of GFE's ethanol plant and to arrange for the transportation of ethanol; however, GFE is responsible for securing all of the rail cars necessary for the transport of ethanol by rail. GFE will pay Eco-Energy a certain percentage of the FOB plant price in consideration of Eco-Energy's services. The contract had an initial term of one year, and will continue to remain in effect until terminated by either party at its unqualified option, by providing written notice of not less than 90 days to the other party. | |
Ethanol marketing fees and commissions totaled approximately $796,000, $743,000, and $1,006,000 for the fiscal years ended October 31, 2013, 2012 and 2011 respectively, and are included net within revenues. | |
During the fourth quarter of fiscal year 2013, HLBE entered into a new marketing agreement with Eco-Energy, for the sale of ethanol. Under this ethanol agreement, Eco-Energy will purchase, market and resell 100% of the ethanol produced at the Company's ethanol production facility and the Company will pay Eco-Energy a marketing fee based on a percentage of the applicable sale price of the ethanol. The marketing fee was negotiated based on prevailing market-rate conditions for comparable ethanol marketing services. | |
Ethanol Contracts | |
At October 31, 2013, GFE had forward contracts to sell approximately $6,283,000 of ethanol for various delivery periods from November 2013 through December 2013 which approximates 36% of its anticipated ethanol sales during that period. | |
At October 31, 2012, GFE had forward contracts to sell approximately $8,747,000 of ethanol for delivery in November 2012. | |
Distillers Grain Marketing Agreement | |
GFE has a Marketing Agreement with RPMG, an unrelated party, for the purpose of marketing and selling all distillers grains produced by the Company. The contract commenced on February 1, 2011 with an initial term of one year, and will continue to remain in effect until terminated by either party at its unqualified option, by providing written notice of not less than 90 days to the other party. Distillers grain commissions totaled approximately $745,000, $650,000 and $460,000 for the fiscal years ended October 31, 2013, 2012 and 2011 respectively, and are included net within revenues. | |
At October 31, 2013, GFE had forward contracts to sell approximately $3,052,000 of distillers grains for delivery in November 2013 through March 2014 which approximates 27% of its anticipated distillers grain sales during that period. | |
At October 31, 2012, GFE had forward contracts to sell approximately $1,773,000 of distillers grains for delivery in November 2012 which approximates 65%. | |
Gavilon Ingredients, LLC serves as the distillers' grains marketer for HLBE pursuant to an off-take agreement that became effective as of November 1, 2013. Under this agreement, Gavilon Ingredients, LLC purchases all of the distillers' grains produced at our Heron Lake ethanol plant in exchange for a service fee. | |
Corn Oil Marketing Agreement | |
GFE has a Marketing Agreement with RPMG, an unrelated party, for the purpose of marketing and selling all corn oil produced by the Company. The contract commenced on April 29, 2010 with an initial term of one year, and will continue to remain in effect until terminated by either party at its unqualified option, by providing written notice of not less than 90 days to the other party. Corn oil commissions totaled approximately $74,000, $55,000 and $44,000 for the fiscal years ended October 31, 2013, 2012 and 2011 respectively, and are included net within revenues. | |
Natural Gas Contracts | |
At October 31, 2013, GFE had no forward contracts to purchase natural gas. | |
At October 31, 2012, GFE had forward contracts to purchase $719,000 of natural gas at prices with delivery periods from November 2012 through March 2013. | |
HLBE has natural gas agreements with a minimum purchase commitment of approximately 1,600,000 MMBTU per year until October 31, 2014. | |
Contract for Natural Gas Pipeline to Plant | |
GFE has an agreement with an unrelated company for the construction of and maintenance of 9.5 miles of natural gas pipeline that will serve the plant. The agreement requires the Company to receive a minimum of 1,400,000 DT of natural gas annually through the term of the agreement. The Company is charged a fee based on the amount of natural gas delivered through the pipeline. | |
This agreement will continue in effect until December 31, 2015 at which time it will automatically renew for consecutive terms of one year. A twelve months prior written notice is required to be given by either party to terminate this agreement. | |
At the HLBE plant, we have a facilities agreement with Northern Border Pipeline Company which allows us access to an existing interstate natural gas pipeline located approximately 16 miles north from the plant. Agrinatural Gas, LLC ("Agrinatural Gas"), owned by our subsidiary, HLBE Pipeline Company, LLC, and Rural Energy Solutions, was formed to own and operate the pipeline and transports gas to HLBE pursuant to a transportation agreement. HLBE Pipeline Company, LLC owns 73% of Agrinatural Gas. HLBE also has a base agreement for the sale and purchase of natural gas with Constellation NewEnergy—Gas Division, LLC ("Constellation"). HLBE buys all of its natural gas from Constellation and this agreement runs for a three year period from November 1, 2011 to October 31, 2014. |
Concentrations
Concentrations | 12 Months Ended | |||||||||
Oct. 31, 2013 | ||||||||||
Concentrations [Abstract] | ' | |||||||||
Concentrations | ' | |||||||||
On July 31, 2013, the Company acquired 63.3% of the outstanding membership units of Heron Lake BioEnergy, LLC (“HLBE”) through its purchase of 100% of the membership units of Project Viking, L.L.C. (“Project Viking”), for a total purchase price of $17,024,500. HLBE is a 50 million gallon per year ethanol plant located in Heron Lake, Minnesota. Project Viking was formed by the previous investor to only hold equity interests in HLBE and the debt incurred to obtain those interests and did not have any other assets or liabilities. The previous owner of Project Viking also owned approximately 12.82% of the outstanding membership units of the Company at July 31, 2013. | ||||||||||
Immediately following the closing, the Company, through its 100% ownership of Project Viking, owned 24,080,949 Class A units and 15,000,000 Class B units of HLBE, for a total of 39,080,949 units, or 63.3% of the 61,697,104 outstanding units. As a result, under HLBE's member control agreement, Project Viking is entitled to appoint five (5) of the nine (9) governors to HLBE's board of governors. | ||||||||||
On July 31, 2013, the Company entered into a Management Services Agreement with HLBE. Under the Management Services Agreement, the Company agreed to supply its own personnel to act as part-time officers and managers of HLBE for the positions of Chief Executive Officer, Chief Financial Officer, and Commodity Risk Manager. The initial term of the Management Services Agreement is three years. The Company will be paid $35,000 per month by HLBE for the first year of the Management Services Agreement. During years two and three of the agreement, HLBE agreed to pay the Company 50% of the total salary, bonuses, and other expenses and costs incurred by the Company for the three management positions. At the expiration of the initial term, the Management Services Agreement will automatically renew for successive one-year terms unless and until the Company or HLBE gives the other party 90-days written notice of termination prior to expiration of the initial term or the start of a renewal term. | ||||||||||
The acquisition date fair value of the consideration transferred consisted of the following: | ||||||||||
Cash | $ | 8,000,000 | ||||||||
Note payable | 4,024,500 | |||||||||
Assumption of note payable to Granite Falls Bank | 5,000,000 | |||||||||
Total Consideration | $ | 17,024,500 | ||||||||
The assets and liabilities of Project Viking were recorded at their respective estimated fair values as of the date of the acquisition using generally accepted accounting principles for business combinations. The Company used a combination of the market and cost approaches that included unobservable level 3 inputs, to estimate the fair values of the assets acquired and liabilities assumed. The fair value of the long-term debt acquired was determined based on the present value of future contractual cash flows discounted at an interest rate that reflects the current borrowing rates available to the Company for loans with similar terms. The fair market value of the debt assumed was approximately $36.5 million and resulted in a debt premium balance of approximately $2.3 million being recorded as of the acquisition date. The debt premium is amortized as a reduction of interest expense over the term of the debt using the effective interest method. The value of the 36.66% noncontrolling interest was determined by using the fair value method by using the most recent arms-length transaction of HLBE's units that did not include a control premium. The goodwill is attributable to the synergies expected to arise after the acquisition in the purchasing of inputs and the sale of outputs. Goodwill is not expected to be deductible for tax purposes. The fair value of the assets acquired includes account receivables of approximately $3,107,000, all of which are expected to be collectible. | ||||||||||
Subsequent to the initial purchase price allocation and within the one year measurement period, new information was obtained about facts and circumstances that existed as of the acquisition date. As such, the purchase price allocation of the HLBE acquisition was retroactively adjusted to include the effect of this measurement period adjustment. An adjustment of approximately $273k was recorded to adjust the fair value of a noncontrolling interest in HLBE, which was adjusted through goodwill during the fourth quarter ended October 31, 2013. The retroactively adjusted purchase price allocation is as follows: | ||||||||||
Cash | $ | 1,022,764 | ||||||||
Restricted cash | 510,955 | |||||||||
Accounts receivable | 3,107,121 | |||||||||
Inventory | 2,303,157 | |||||||||
Prepaid expenses | 1,107,025 | |||||||||
Property, plant, and equipment | 51,625,774 | |||||||||
Other assets | 924,252 | |||||||||
Goodwill | 1,372,473 | |||||||||
Total assets acquired | $ | 61,973,521 | ||||||||
Accounts payable | $ | (936,893 | ) | |||||||
Accrued expenses | (399,623 | ) | ||||||||
Notes payable | (36,452,764 | ) | ||||||||
Non-controlling interest | (7,159,741 | ) | ||||||||
Net purchase price | $ | 17,024,500 | ||||||||
The acquisition occurred on the last day of the Company's fiscal third quarter, therefore the Company consolidated three months of HLBE's revenues and expenses in the consolidated statements of operations. HLBE contributed revenues of $38,560,522 and earnings of $1,305,044 to the Company for the three month period from August 1, 2013 to October 31, 2013. The net income attributable to non-controlling interests for the year ended October 31, 2013 totaled approximately $527,000. | ||||||||||
The following represents the unaudited pro forma consolidated statement of operations as if the transaction occurred at the beginning of the following periods: | ||||||||||
For the years ended | ||||||||||
October 31, 2013 | October 31, 2012 | 31-Oct-11 | ||||||||
Unaudited | Unaudited | Unaudited | ||||||||
Revenues | $ | 349,304,556 | $ | 343,821,978 | $ | 320,641,864 | ||||
Net income, including portion attributable to non-controlling interest of $712,289, ($20,702,684), and $361,351, respectively | $ | 4,864,820 | $ | (31,794,779 | ) | $ | 13,612,987 | |||
Earnings per share (30,606, 30,614, and 30,656 weighted average units outstanding - basic and diluted, respectively) | $ | 116.16 | $ | (617.00 | ) | $ | 412.75 | |||
The pro forma financial information is presented for informational purposes only and is not indicative of the results of operations that would have been achieved if the acquisition had taken place at the beginning of each of the periods presented. These amounts have been calculated after adjusting the results of HLBE to reflect the additional amortization of the debt premium that would have occurred assuming the fair value adjustment to long-term debt had been applied at the beginning of each period presented. |
Legal_Proceedings
Legal Proceedings | 12 Months Ended |
Oct. 31, 2013 | |
Legal Proceedings [Abstract] | ' |
Legal Proceedings | ' |
LEGAL PROCEEDINGS | |
From time to time in the ordinary course of business, the Company 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 are not currently a party to any material pending legal proceedings and we are not currently aware of any such proceedings contemplated by governmental authorities. |
Quarterly_Financial_Data_Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended | ||||||||||||||||
Oct. 31, 2013 | |||||||||||||||||
Quarterly Financial Data (Unaudited) [Abstract] | ' | ||||||||||||||||
Quarterly Financial Data (Unaudited) | ' | ||||||||||||||||
QUARTERLY FINANCIAL DATA (UNAUDITED) | |||||||||||||||||
Summary quarterly results are as follows: | |||||||||||||||||
First | Second | Third | Fourth | ||||||||||||||
Quarter | Quarter | Quarter | Quarter | ||||||||||||||
Fiscal year ended October 31, 2013 | |||||||||||||||||
Revenues | $ | 47,117,122 | $ | 48,020,602 | $ | 48,884,076 | $ | 80,079,134 | |||||||||
Gross profit | 832,144 | 3,629,972 | 2,710,179 | 6,581,018 | |||||||||||||
Operating income | 269,449 | 3,047,007 | 2,197,158 | 5,521,116 | |||||||||||||
Net income attributable to GFE | 221,427 | 3,031,943 | 2,173,701 | 4,874,950 | |||||||||||||
Basic and diluted earnings per unit attributable to GFE | 7.23 | 99.06 | 71.02 | 159.31 | |||||||||||||
First | Second | Third | Fourth | ||||||||||||||
Quarter | Quarter | Quarter | Quarter | ||||||||||||||
Fiscal year ended October 31, 2012 | |||||||||||||||||
Revenues | $ | 43,745,776 | $ | 39,025,122 | $ | 42,435,763 | $ | 49,955,382 | |||||||||
Gross profit (loss) | 3,687,950 | 657,416 | 54,694 | (1,946,091 | ) | ||||||||||||
Operating income (loss) | 3,024,214 | 66,935 | (597,187 | ) | (2,489,589 | ) | |||||||||||
Net income (loss) | 3,042,288 | 116,466 | (565,637 | ) | (2,432,510 | ) | |||||||||||
Basic and diluted earnings (loss) per unit | 99.29 | 3.81 | (18.49 | ) | (79.36 | ) | |||||||||||
First Quarter | Second Quarter | Third Quarter | Fourth Quarter | ||||||||||||||
Fiscal year ended October 31, 2011 | |||||||||||||||||
Revenues | $ | 30,716,346 | $ | 34,537,750 | $ | 45,414,923 | $ | 45,852,470 | |||||||||
Gross profit | 3,533,733 | 3,704,535 | 2,068,381 | 4,861,424 | |||||||||||||
Operating income | 2,975,612 | 3,245,729 | 1,550,481 | 4,393,545 | |||||||||||||
Net income | 3,011,596 | 3,270,110 | 1,586,882 | 4,423,268 | |||||||||||||
Basic and diluted earnings per unit | 98.24 | 106.67 | 51.76 | 144.29 | |||||||||||||
The above quarterly financial data is unaudited, but in the opinion of management, all adjustments necessary for a fair presentation of the selected data for these periods presented have been included. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies Summary of Significant Accounting Policies (Policies) | 12 Months Ended | |
Oct. 31, 2013 | ||
Accounting Policies [Abstract] | ' | |
Nature of Business [Policy Text Block] | ' | |
Nature of Business | ||
GFE is a Minnesota limited liability company currently producing fuel-grade ethanol, distillers grains, and crude corn oil near Granite Falls, Minnesota and sells these products, pursuant to marketing agreements, throughout the continental United States and on the international market. GFE's plant has an approximate annual production capacity of 60 million gallons, but is currently permitted to produce up to 70 million gallons of undenatured ethanol on a twelve month rolling sum basis. | ||
HLBE is a Minnesota limited liability company currently producing fuel-grade ethanol, distillers grains, and crude corn oil near Heron Lake, Minnesota and sells these products, pursuant to marketing agreements, throughout the continental United States. HLBE's plant has an approximate annual production capacity of 55 million gallons, but is currently permitted to produce up to 59.2 million gallons. | ||
Fiscal Period, Policy [Policy Text Block] | ' | |
Fiscal Reporting Period | ||
The Company has adopted a fiscal year ending October 31 for financial reporting purposes. | ||
Use of Estimates, Policy [Policy Text Block] | ' | |
Accounting Estimates | ||
Management uses estimates and assumptions in preparing these financial statements in accordance with generally accepted accounting principles in the United States of America. Those estimates and assumptions affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities, and the reported revenues and expenses. The Company uses estimates and assumptions in accounting for the following significant matters, among others: economic lives of property, plant, and equipment, valuation of commodity derivatives and inventory, and the assumptions used in the impairment analysis of long-lived assets and the assumptions used to estimate the fair value of acquired assets and liabilities, which includes goodwill. Actual results may differ from previously estimated amounts, and such differences may be material to our financial statements. The Company periodically reviews estimates and assumptions, and the effects of revisions are reflected in the period in which the revision is made. | ||
Cash and Cash Equivalents, Policy [Policy Text Block] | ' | |
Cash | ||
The Company maintains its accounts primarily at two financial institutions, of which one is a member of the Company. At times throughout the year, the Company's cash balances may exceed amounts insured by the Federal Deposit Insurance Corporation. The Company does not believe it is exposed to any significant credit risk on its cash balances. | ||
Cash and Cash Equivalents, Restricted Cash and Cash Equivalents, Policy [Policy Text Block] | ' | |
Restricted Cash | ||
The Company has restricted cash balances relating to its margin requirements with the Company's commodity derivative broker based on open commodity contracts discussed in Note 5. | ||
Receivables, Policy [Policy Text Block] | ' | |
Accounts Receivable | ||
Credit terms are extended to customers in the normal course of business. The Company performs ongoing credit evaluations of its customers' financial condition and, generally, requires no collateral. | ||
Accounts receivable are recorded at their estimated net realizable value. Accounts are considered past due if payment is not made on a timely basis in accordance with the Company's credit terms. Accounts considered uncollectible are written off. The Company follows a policy of providing an allowance for doubtful accounts; however, based on historical experience, and its evaluation of the current status of receivables, the Company is of the belief that such accounts will be collectible in all material respects and thus an allowance was not necessary at October 31, 2013 or 2012. It is at least possible this estimate will change in the future. | ||
Inventory, Policy [Policy Text Block] | ' | |
Inventory | ||
Inventory is stated at the lower of cost or market. Cost for all inventories is determined using the first in first out method (FIFO). Market is based on current replacement values except that it does not exceed net realizable values and it is not less than net realizable values reduced by allowances from normal profit margin. Inventory consists of raw materials, work in process, finished goods, and spare parts. Corn is the primary raw material along with other raw materials. Finished goods consist of ethanol, distillers grains, and corn oil. | ||
Property, Plant and Equipment, Policy [Policy Text Block] | ' | |
Property, Plant, and Equipment | ||
Property, plant, and equipment are stated at cost. Depreciation is provided over the following estimated useful lives by use of the straight-line method. | ||
Asset Description | Years | |
Land improvements | 5-20 years | |
Buildings | 10-30 years | |
Grain handling equipment | 5-15 years | |
Mechanical equipment | 5-15 years | |
Equipment | 5-10 years | |
Maintenance and repairs are expensed as incurred; major improvements and betterments are capitalized. Construction in progress expenditures will be depreciated using the straight-line method over their estimated useful lives once the assets are placed into service. Depreciation expense totaled approximately $5,937,000, $4,161,000, and $3,979,000 for the fiscal years ended October 31, 2013, 2012, and 2011, respectively. | ||
Impairment or Disposal of Long-Lived Assets, Policy [Policy Text Block] | ' | |
Long-Lived Assets | ||
Long-lived assets, such as property, plant, and equipment, and purchased intangible assets subject to amortization, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If circumstances require a long-lived asset be tested for possible impairment, the Company first compares undiscounted cash flows expected to be generated by an asset to the carrying value of the asset. If the carrying value of the long-lived asset is not recoverable on an undiscounted cash flow basis, impairment is recognized to the extent that the carrying value exceeds its fair value. Fair value is determined through various valuation techniques including, but not limited to, discounted cash flow models, quoted market values and third-party independent appraisals, as considered necessary. No indicators of impairment existed during fiscal 2013 or 2012 that would have triggered impairment testing, and therefore, no impairment expense was recorded during 2013 or 2012. | ||
Revenue Recognition, Policy [Policy Text Block] | ' | |
Revenue Recognition | ||
The Company generally sells ethanol and related products pursuant to marketing agreements. Revenues from the production of ethanol and the related products are recorded when the customer has taken title and assumed the risks and rewards of ownership, prices are fixed or determinable and collectability is reasonably assured. Ethanol and related products are generally shipped free on board (FOB) shipping point. The Company believes there are no ethanol sales, during any given month, which should be considered contingent and recorded as deferred revenue. | ||
In accordance with the Company's agreements for the marketing and sale of ethanol and related products, marketing fees and commissions due to the marketers are deducted from the gross sales price as earned. These fees and commissions are recorded net of revenues, as they do not provide an identifiable benefit that is sufficiently separable from the sale of ethanol and related products. Shipping costs paid by the Company to the marketer in the sale of ethanol are not specifically identifiable and, as a result, are recorded based on the net selling price reported to the Company from the marketer. Shipping costs incurred by the Company in the sale of distillers grains and corn oil are included in cost of goods sold. | ||
Fair Value of Financial Instruments, Policy [Policy Text Block] | ' | |
Fair Value of Financial Instruments | ||
The Company's accounting for fair value measurements of assets and liabilities that are recognized or disclosed at fair value in the financial statements on a recurring or nonrecurring basis adhere to the Financial Accounting Standards Board (FASB) fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The Company has adopted guidance for fair value measurement related to nonfinancial items that are recognized and disclosed at fair value in the financial statements on a nonrecurring basis. The guidance establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to measurements involving significant unobservable inputs (Level 3 measurements). | ||
The three levels of the fair value hierarchy are as follows: | ||
• | Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. | |
• | Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability. | |
• | Level 3 inputs are unobservable inputs for the asset or liability. | |
The level in the fair value hierarchy within which a fair measurement in its entirety falls is based on the lowest level input that is significant to the fair value measurement in its entirety. | ||
Except for those assets and liabilities which are required by authoritative accounting guidance to be recorded at fair value in our balance sheets, the Company has elected not to record any other assets or liabilities at fair value. No events occurred during the fiscal years ended October 31, 2013 or 2012 that required adjustment to the recognized balances of assets or liabilities, which are recorded at fair value on a nonrecurring basis. | ||
The carrying value of cash, restricted cash, accounts receivable, accounts payable and accrued liabilities approximates fair value due to the short maturity of these instruments. The Company obtains fair value measurements from an independent pricing service for corn derivative contracts. The fair value measurements consider observable data that may include dealer quotes and live trading levels from the Chicago Board of Trade and New York Mercantile Exchange markets. The fair value of the long-term debt is estimated based on anticipated interest rates which management believes would currently be available to the Company for similar issues of debt, taking into account the current credit risk of the Company and other market factors. The Company believes the carrying value of the debt instruments approximate fair value. | ||
Derivatives, Methods of Accounting, Hedging Derivatives [Policy Text Block] | ' | |
Derivative Instruments | ||
From time to time the Company enters into derivative transactions to hedge its exposures to commodity price fluctuations. The Company is required to record these derivatives in the balance sheets at fair value. | ||
In order for a derivative to qualify as a hedge, specific criteria must be met and appropriate documentation maintained. Gains and losses from derivatives that do not qualify as hedges, or are undesignated, must be recognized immediately in earnings. If the derivative does qualify as a hedge, depending on the nature of the hedge, changes in the fair value of the derivative will be either offset against the change in fair value of the hedged assets, liabilities, or firm commitments through earnings or recognized in other comprehensive income until the hedged item is recognized in earnings. Changes in the fair value of undesignated derivatives are recorded in earnings. | ||
Additionally, the Company is required to evaluate its contracts to determine whether the contracts are derivatives. Certain contracts that literally meet the definition of a derivative may be exempted 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 accounting and reporting requirements, and therefore, are not marked to market in our financial statements. | ||
In order to reduce the risks caused by market fluctuations, the Company occasionally hedges its anticipated corn, natural gas, and denaturant purchases and ethanol sales by entering into options and futures contracts. These contracts are used with the intention to fix the purchase price of anticipated requirements for corn in the Company's ethanol production activities and the related sales price of ethanol. The fair value of these contracts is based on quoted prices in active exchange-traded or over-the-counter market conditions. Although the Company believes its commodity derivative positions are economic hedges, none have been formally designated as a hedge for accounting purposes and derivative positions are recorded on the balance sheet at their fair market value, with changes in fair value recognized in current period earnings or losses. The Company does not enter into financial instruments for trading or speculative purposes. | ||
The Company has adopted authoritative guidance related to “Derivatives and Hedging,” and has included the required enhanced quantitative and qualitative disclosure about objectives and strategies for using derivatives, quantitative disclosures about fair value amounts of gains and losses from derivative instruments, and disclosures about credit-risk-related contingent features in derivative agreements. See further discussion in Note 5. | ||
Income Tax, Policy [Policy Text Block] | ' | |
Income Taxes | ||
The Company is treated as a partnership for federal and state income tax purposes, and generally does not incur income taxes. Instead its earnings and losses are included in the income tax returns of its members. Therefore, no provision or liability for federal or state income taxes has been included in these financial statements. The Company had no significant uncertain tax positions as of October 31, 2013 or 2012. For years before fiscal 2011, the Company is no longer subject to U.S. Federal or state income tax examinations. | ||
Environmental Costs, Policy [Policy Text Block] | ' | |
Environmental Liabilities | ||
The Company's operations are subject to environmental laws and regulations adopted by various governmental entities in the jurisdiction in which it operates. These laws require the Company to investigate and remediate the effects of the release or disposal of materials at its location. 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 liability is probable and the costs can be reasonably estimated. No expense has been recorded for the fiscal years ended October 31, 2013, 2012, or 2011. | ||
Earnings Per Share, Policy [Policy Text Block] | ' | |
Net Income per Unit | ||
Basic net income per unit is computed by dividing net income by the weighted average number of members' units outstanding during the period. Diluted net income per unit is computed by dividing net income by the weighted average number of members' units and members' unit equivalents outstanding during the period. There were no member unit equivalents outstanding during the periods presented; accordingly, for all periods presented, the calculations of the Company's basic and diluted net income per unit are the same. | ||
Business Combinations Policy [Policy Text Block] | ' | |
Business Combinations | ||
The Company allocates the total purchase price of a business combination to the assets acquired and the liabilities assumed based on their estimated fair values at the acquisition date, with the excess purchase price recorded as goodwill. The Company used current market data to assist them in determining the fair value of the assets acquired and liabilities assumed, including goodwill, based on recognized business valuation methodology. Subsequent to the acquisition but not to exceed one year from the acquisition date, the Company will record any material adjustments retrospectively to the initial estimate based on new information obtained about facts and circumstances that existed as of the acquisition date. The Company expenses any acquisition-related costs as incurred in connection with business combinations. An income, market or cost valuation method may be utilized to estimate the fair value of the assets acquired or liabilities assumed in a business combination. The income valuation method represents the present value of future cash flows over the life of the asset using (i) discrete financial forecasts, which rely on management's estimates of revenue and operating expenses, (ii) long-term growth rates, and (iii) an appropriate discount rate. The market valuation method uses prices paid for a reasonably similar asset by other purchasers in the market, with adjustments relating to any differences between the assets. The cost valuation method is based on the replacement cost of a comparable asset at prices at the time of the acquisition reduced for depreciation of the asset. | ||
Goodwill and Intangible Assets, Goodwill, Policy [Policy Text Block] | ' | |
Goodwill | ||
Goodwill represents the cost in excess of the fair value of net assets acquired. The Company conducts impairment assessments annually or when events indicate a triggering event has occurred. |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies Summary of Significant Accounting Policies (Tables) | 12 Months Ended | |
Oct. 31, 2013 | ||
Accounting Policies [Abstract] | ' | |
Property, Plant and Equipment [Table Text Block] | ' | |
Property, plant, and equipment are stated at cost. Depreciation is provided over the following estimated useful lives by use of the straight-line method. | ||
Asset Description | Years | |
Land improvements | 5-20 years | |
Buildings | 10-30 years | |
Grain handling equipment | 5-15 years | |
Mechanical equipment | 5-15 years | |
Equipment | 5-10 years |
Acquisition_Tables
Acquisition (Tables) | 12 Months Ended | |||||||||||||||
Oct. 31, 2013 | ||||||||||||||||
Fair Value of Cash Used [Abstract] | ' | |||||||||||||||
Fair Value, by Balance Sheet Grouping [Table Text Block] | ' | |||||||||||||||
The acquisition date fair value of the consideration transferred consisted of the following: | ||||||||||||||||
Cash | $ | 8,000,000 | ||||||||||||||
Note payable | 4,024,500 | |||||||||||||||
Assumption of note payable to Granite Falls Bank | 5,000,000 | |||||||||||||||
Total Consideration | $ | 17,024,500 | ||||||||||||||
The following table provides information on those derivative assets measured at fair value on a recurring basis at October 31, 2013: | ||||||||||||||||
Carrying Amount in Balance Sheet | Fair Value | Fair Value Measurement Using | ||||||||||||||
31-Oct-13 | 31-Oct-13 | Quoted Prices in Active Markets | Significant Other Observable Inputs | Significant unobservable inputs | ||||||||||||
(Level 1) | (Level 2) | (Level 3) | ||||||||||||||
Financial Liabilities: | ||||||||||||||||
Derivative Instruments | $ | (75,113 | ) | $ | (75,113 | ) | $ | (75,113 | ) | $ | — | $ | — | |||
The following table provides information on those derivative assets measured at fair value on a recurring basis at October 31, 2012: | ||||||||||||||||
Carrying Amount in Balance Sheet | Fair Value | Fair Value Measurement Using | ||||||||||||||
31-Oct-12 | 31-Oct-12 | Quoted Prices in Active Markets | Significant Other Observable Inputs | Significant unobservable inputs | ||||||||||||
(Level 1) | (Level 2) | (Level 3) | ||||||||||||||
Financial Liabilities: | ||||||||||||||||
Derivative Instruments | $ | (45,563 | ) | $ | (45,563 | ) | $ | (45,563 | ) | $ | — | $ | — | |||
Schedule of Business Acquisitions, by Acquisition [Table Text Block] | ' | |||||||||||||||
Cash | $ | 1,022,764 | ||||||||||||||
Restricted cash | 510,955 | |||||||||||||||
Accounts receivable | 3,107,121 | |||||||||||||||
Inventory | 2,303,157 | |||||||||||||||
Prepaid expenses | 1,107,025 | |||||||||||||||
Property, plant, and equipment | 51,625,774 | |||||||||||||||
Other assets | 924,252 | |||||||||||||||
Goodwill | 1,372,473 | |||||||||||||||
Total assets acquired | $ | 61,973,521 | ||||||||||||||
Accounts payable | $ | (936,893 | ) | |||||||||||||
Accrued expenses | (399,623 | ) | ||||||||||||||
Notes payable | (36,452,764 | ) | ||||||||||||||
Non-controlling interest | (7,159,741 | ) | ||||||||||||||
Net purchase price | $ | 17,024,500 | ||||||||||||||
BUSINESS COMBINATION | ||||||||||||||||
On July 31, 2013, the Company acquired 63.3% of the outstanding membership units of Heron Lake BioEnergy, LLC (“HLBE”) through its purchase of 100% of the membership units of Project Viking, L.L.C. (“Project Viking”), for a total purchase price of $17,024,500. HLBE is a 50 million gallon per year ethanol plant located in Heron Lake, Minnesota. Project Viking was formed by the previous investor to only hold equity interests in HLBE and the debt incurred to obtain those interests and did not have any other assets or liabilities. The previous owner of Project Viking also owned approximately 12.82% of the outstanding membership units of the Company at July 31, 2013. | ||||||||||||||||
Immediately following the closing, the Company, through its 100% ownership of Project Viking, owned 24,080,949 Class A units and 15,000,000 Class B units of HLBE, for a total of 39,080,949 units, or 63.3% of the 61,697,104 outstanding units. As a result, under HLBE's member control agreement, Project Viking is entitled to appoint five (5) of the nine (9) governors to HLBE's board of governors. | ||||||||||||||||
On July 31, 2013, the Company entered into a Management Services Agreement with HLBE. Under the Management Services Agreement, the Company agreed to supply its own personnel to act as part-time officers and managers of HLBE for the positions of Chief Executive Officer, Chief Financial Officer, and Commodity Risk Manager. The initial term of the Management Services Agreement is three years. The Company will be paid $35,000 per month by HLBE for the first year of the Management Services Agreement. During years two and three of the agreement, HLBE agreed to pay the Company 50% of the total salary, bonuses, and other expenses and costs incurred by the Company for the three management positions. At the expiration of the initial term, the Management Services Agreement will automatically renew for successive one-year terms unless and until the Company or HLBE gives the other party 90-days written notice of termination prior to expiration of the initial term or the start of a renewal term. | ||||||||||||||||
The acquisition date fair value of the consideration transferred consisted of the following: | ||||||||||||||||
Cash | $ | 8,000,000 | ||||||||||||||
Note payable | 4,024,500 | |||||||||||||||
Assumption of note payable to Granite Falls Bank | 5,000,000 | |||||||||||||||
Total Consideration | $ | 17,024,500 | ||||||||||||||
The assets and liabilities of Project Viking were recorded at their respective estimated fair values as of the date of the acquisition using generally accepted accounting principles for business combinations. The Company used a combination of the market and cost approaches that included unobservable level 3 inputs, to estimate the fair values of the assets acquired and liabilities assumed. The fair value of the long-term debt acquired was determined based on the present value of future contractual cash flows discounted at an interest rate that reflects the current borrowing rates available to the Company for loans with similar terms. The fair market value of the debt assumed was approximately $36.5 million and resulted in a debt premium balance of approximately $2.3 million being recorded as of the acquisition date. The debt premium is amortized as a reduction of interest expense over the term of the debt using the effective interest method. The value of the 36.66% noncontrolling interest was determined by using the fair value method by using the most recent arms-length transaction of HLBE's units that did not include a control premium. The goodwill is attributable to the synergies expected to arise after the acquisition in the purchasing of inputs and the sale of outputs. Goodwill is not expected to be deductible for tax purposes. The fair value of the assets acquired includes account receivables of approximately $3,107,000, all of which are expected to be collectible. | ||||||||||||||||
Subsequent to the initial purchase price allocation and within the one year measurement period, new information was obtained about facts and circumstances that existed as of the acquisition date. As such, the purchase price allocation of the HLBE acquisition was retroactively adjusted to include the effect of this measurement period adjustment. An adjustment of approximately $273k was recorded to adjust the fair value of a noncontrolling interest in HLBE, which was adjusted through goodwill during the fourth quarter ended October 31, 2013. The retroactively adjusted purchase price allocation is as follows: | ||||||||||||||||
Cash | $ | 1,022,764 | ||||||||||||||
Restricted cash | 510,955 | |||||||||||||||
Accounts receivable | 3,107,121 | |||||||||||||||
Inventory | 2,303,157 | |||||||||||||||
Prepaid expenses | 1,107,025 | |||||||||||||||
Property, plant, and equipment | 51,625,774 | |||||||||||||||
Other assets | 924,252 | |||||||||||||||
Goodwill | 1,372,473 | |||||||||||||||
Total assets acquired | $ | 61,973,521 | ||||||||||||||
Accounts payable | $ | (936,893 | ) | |||||||||||||
Accrued expenses | (399,623 | ) | ||||||||||||||
Notes payable | (36,452,764 | ) | ||||||||||||||
Non-controlling interest | (7,159,741 | ) | ||||||||||||||
Net purchase price | $ | 17,024,500 | ||||||||||||||
The acquisition occurred on the last day of the Company's fiscal third quarter, therefore the Company consolidated three months of HLBE's revenues and expenses in the consolidated statements of operations. HLBE contributed revenues of $38,560,522 and earnings of $1,305,044 to the Company for the three month period from August 1, 2013 to October 31, 2013. The net income attributable to non-controlling interests for the year ended October 31, 2013 totaled approximately $527,000. | ||||||||||||||||
The following represents the unaudited pro forma consolidated statement of operations as if the transaction occurred at the beginning of the following periods: | ||||||||||||||||
For the years ended | ||||||||||||||||
October 31, 2013 | October 31, 2012 | 31-Oct-11 | ||||||||||||||
Unaudited | Unaudited | Unaudited | ||||||||||||||
Revenues | $ | 349,304,556 | $ | 343,821,978 | $ | 320,641,864 | ||||||||||
Net income, including portion attributable to non-controlling interest of $712,289, ($20,702,684), and $361,351, respectively | $ | 4,864,820 | $ | (31,794,779 | ) | $ | 13,612,987 | |||||||||
Earnings per share (30,606, 30,614, and 30,656 weighted average units outstanding - basic and diluted, respectively) | $ | 116.16 | $ | (617.00 | ) | $ | 412.75 | |||||||||
The pro forma financial information is presented for informational purposes only and is not indicative of the results of operations that would have been achieved if the acquisition had taken place at the beginning of each of the periods presented. These amounts have been calculated after adjusting the results of HLBE to reflect the additional amortization of the debt premium that would have occurred assuming the fair value adjustment to long-term debt had been applied at the beginning of each period presented. | ||||||||||||||||
Business Acquisition, Pro Forma Information [Table Text Block] | ' | |||||||||||||||
The following represents the unaudited pro forma consolidated statement of operations as if the transaction occurred at the beginning of the following periods: | ||||||||||||||||
For the years ended | ||||||||||||||||
October 31, 2013 | October 31, 2012 | 31-Oct-11 | ||||||||||||||
Unaudited | Unaudited | Unaudited | ||||||||||||||
Revenues | $ | 349,304,556 | $ | 343,821,978 | $ | 320,641,864 | ||||||||||
Net income, including portion attributable to non-controlling interest of $712,289, ($20,702,684), and $361,351, respectively | $ | 4,864,820 | $ | (31,794,779 | ) | $ | 13,612,987 | |||||||||
Earnings per share (30,606, 30,614, and 30,656 weighted average units outstanding - basic and diluted, respectively) | $ | 116.16 | $ | (617.00 | ) | $ | 412.75 | |||||||||
Inventory_by_Process_Tables
Inventory by Process (Tables) | 12 Months Ended | ||||||
Oct. 31, 2013 | |||||||
Inventory in Process [Abstract] | ' | ||||||
Schedule of Inventory, Current [Table Text Block] | ' | ||||||
Inventories consist of the following: | |||||||
October 31, 2013 | October 31, 2012 | ||||||
Raw materials | $ | 4,652,465 | $ | 8,977,820 | |||
Spare parts | 1,636,466 | 584,011 | |||||
Work in process | 1,643,574 | 1,150,239 | |||||
Finished goods | 4,437,772 | 1,557,546 | |||||
Totals | $ | 12,370,277 | $ | 12,013,169 | |||
Derivative_Instruments_Tables
Derivative Instruments (Tables) | 12 Months Ended | |||||||||||||||
Oct. 31, 2013 | ||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | |||||||||||||||
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Table Text Block] | ' | |||||||||||||||
The following tables provide details regarding the Company's derivative instruments at October 31, 2013, none of which were designated as hedging instruments: | ||||||||||||||||
Balance Sheet location | Assets | Liabilities | ||||||||||||||
Corn contracts | Commodity derivative instruments | $ | — | $ | (75,113 | ) | ||||||||||
Totals | $ | — | $ | (75,113 | ) | |||||||||||
The following tables provide details regarding the Company's derivative instruments at October 31, 2012, none of which were designated as hedging instruments: | ||||||||||||||||
Balance Sheet location | Assets | Liabilities | ||||||||||||||
Corn contracts | Commodity derivative instruments | $ | — | $ | (45,563 | ) | ||||||||||
Totals | $ | — | $ | (45,563 | ) | |||||||||||
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance [Table Text Block] | ' | |||||||||||||||
The following tables provide details regarding the gains and (losses) from Company's derivative instruments in statements of operations, none of which are designated as hedging instruments: | ||||||||||||||||
Statement of | Fiscal Years Ended October 31, | |||||||||||||||
Operations location | 2013 | 2012 | 2011 | |||||||||||||
Ethanol contracts | Revenue | $ | — | $ | — | $ | (4,626 | ) | ||||||||
Corn contracts | Cost of Goods Sold | 155,563 | (1,651,799 | ) | 1,280,413 | |||||||||||
Natural gas contracts | Cost of Goods Sold | — | — | (4,545 | ) | |||||||||||
Total gain (loss) | $ | 155,563 | $ | (1,651,799 | ) | $ | 1,271,242 | |||||||||
Revolving_Line_of_Credit_Long_1
Revolving Line of Credit & Long Term Debt Long Term Debt (Tables) | 12 Months Ended | ||||||
Oct. 31, 2013 | |||||||
Debt Instrument [Line Items] | ' | ||||||
Schedule of Maturities of Long-term Debt [Table Text Block] | ' | ||||||
stimated maturities of long-term debt at October 31, 2013 are as follows: | |||||||
2014 | $ | 3,490,808 | |||||
2015 | 2,846,762 | ||||||
2016 | 21,602,578 | ||||||
2017 | 522,563 | ||||||
2018 | 7,022,813 | ||||||
After 2018 | 987,239 | ||||||
Total long-term debt | $ | 36,472,763 | |||||
Schedule of Long-term Debt Instruments [Table Text Block] | ' | ||||||
Long-term debt consists of the following: | |||||||
October 31, 2013 | October 31, 2012 | ||||||
GRANITE FALLS ENERGY: | |||||||
Capital One Shuttlewagon Railcar Mover (5 year term at 3.875%, due in monthly installments of $10,995) | $ | 382,918 | $ | 497,636 | |||
Revolving Term Loan | 2,513,674 | 4,891,952 | |||||
HERON LAKE BIOENERGY: | |||||||
Term note payable to lending institution (including premium of approximately $1.74m) | 18,317,800 | — | |||||
Revolving term note payable to lending institution (including premium of approximately $283k) | 6,263,158 | — | |||||
Assessment payable as part of water treatment agreement, due in semi-annual installments of $189,393 with interest at 6.55%, enforceable by statutory lien, with the final payment due in 2021. The Company made deposits for one years' worth of debt service payments that are held on deposit to be applied with the final payments of the assessment. | 2,246,771 | — | |||||
Assessment payable as part of water treatment agreement, due in semi-annual installments of $25,692 with interest at 0.50%, enforceable by statutory lien, with the final payment due in 2016. | 152,698 | — | |||||
Assessment payable as part of water supply agreement, due in monthly installments of $3,942 with interest at 8.73%, enforceable by statutory lien, with the final payment due in 2019. | 205,209 | — | |||||
Note payable to electrical company with monthly payments of $6,250 with a 1% maintenance fee due each October, due September 2017. The electrical company is a member of the Company. | 293,750 | — | |||||
Note payable to a lending institution for the construction of the pipeline assets initially due in December 2011, converted in February 2012 to a term loan with a three year repayment period. Interest is at 5.29% and the note, along with the line of credit in Note 8, is secured by substantially all assets of Agrinatural. | 1,013,132 | — | |||||
Note payable to noncontrolling interest member of Agrinatural. Interest is at 5.425%, with a maturity date of October 2014. | 300,000 | — | |||||
Equipment payable on corn oil separation equipment from a vendor. The Company pays approximately $40,000 per month conditioned upon revenue generated from the corn oil equipment. The monthly payment includes implicit interest of 5.57% until maturity in May 2015 and the note is secured by the equipment. | 640,653 | — | |||||
Subordinated Convertible Debt with interest of 7.25% paid on a semi-annual basis. | 4,143,000 | — | |||||
Totals | 36,472,763 | 5,389,588 | |||||
Less amounts due within one year | 3,490,808 | 114,718 | |||||
Net long-term debt | $ | 32,981,955 | $ | 5,274,870 | |||
Leases_Leases_Tables
Leases Leases (Tables) | 12 Months Ended | ||||
Oct. 31, 2013 | |||||
Leases [Abstract] | ' | ||||
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | ' | ||||
At October 31, 2013, the Company had the following commitments for payments of rentals under operating leases which at inception had a non-cancelable term of more than one year: | |||||
November 1, 2013 to October 31, 2014 | $ | 2,602,286 | |||
November 1, 2014 to October 31, 2015 | 1,640,775 | ||||
November 1, 2015 to October 31, 2016 | 940,910 | ||||
November 1, 2016 to October 31, 2017 | 474,004 | ||||
November 1, 2017 to October 31, 2018 | 60,816 | ||||
Total minimum lease commitments | $ | 5,718,791 | |||
Fair_Value_FMV_Tables
Fair Value FMV (Tables) | 12 Months Ended | |||||||||||||||
Oct. 31, 2013 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||
Fair Value, by Balance Sheet Grouping [Table Text Block] | ' | |||||||||||||||
The acquisition date fair value of the consideration transferred consisted of the following: | ||||||||||||||||
Cash | $ | 8,000,000 | ||||||||||||||
Note payable | 4,024,500 | |||||||||||||||
Assumption of note payable to Granite Falls Bank | 5,000,000 | |||||||||||||||
Total Consideration | $ | 17,024,500 | ||||||||||||||
The following table provides information on those derivative assets measured at fair value on a recurring basis at October 31, 2013: | ||||||||||||||||
Carrying Amount in Balance Sheet | Fair Value | Fair Value Measurement Using | ||||||||||||||
31-Oct-13 | 31-Oct-13 | Quoted Prices in Active Markets | Significant Other Observable Inputs | Significant unobservable inputs | ||||||||||||
(Level 1) | (Level 2) | (Level 3) | ||||||||||||||
Financial Liabilities: | ||||||||||||||||
Derivative Instruments | $ | (75,113 | ) | $ | (75,113 | ) | $ | (75,113 | ) | $ | — | $ | — | |||
The following table provides information on those derivative assets measured at fair value on a recurring basis at October 31, 2012: | ||||||||||||||||
Carrying Amount in Balance Sheet | Fair Value | Fair Value Measurement Using | ||||||||||||||
31-Oct-12 | 31-Oct-12 | Quoted Prices in Active Markets | Significant Other Observable Inputs | Significant unobservable inputs | ||||||||||||
(Level 1) | (Level 2) | (Level 3) | ||||||||||||||
Financial Liabilities: | ||||||||||||||||
Derivative Instruments | $ | (45,563 | ) | $ | (45,563 | ) | $ | (45,563 | ) | $ | — | $ | — | |||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||
Oct. 31, 2013 | |||||||
Income Tax Disclosure [Abstract] | ' | ||||||
Taxable Income Reconciliation [Table Text Block] | ' | ||||||
The differences between the financial statement basis and tax basis of assets are based on the following: | |||||||
October 31, 2013 | 31-Oct-12 | ||||||
Financial statement basis of assets | $ | 112,673,222 | $ | 61,133,132 | |||
Organization & start-up costs capitalized for tax purposes, net | 625,720 | 715,109 | |||||
Tax depreciation greater than book depreciation | (24,977,852 | ) | (25,653,678 | ) | |||
Unrealized derivatives losses | 75,113 | 45,563 | |||||
Capitalized inventory | 35,761 | 10,957 | |||||
Net effect of consolidation of acquired subsidiary | (10,396,697 | ) | — | ||||
Income tax basis of assets | $ | 78,035,267 | $ | 36,251,083 | |||
Financial statement basis of liabilities | $ | 44,305,219 | $ | 11,277,807 | |||
Debt premium - acquisition fair value adjustment | (2,023,441 | ) | — | ||||
Income tax basis of liabilities | $ | 42,281,778 | $ | 11,277,807 | |||
Quarterly_Financial_Data_Unaud1
Quarterly Financial Data (Unaudited) Quarterly Financials (Tables) | 12 Months Ended | ||||||||||||||||
Oct. 31, 2013 | |||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | ||||||||||||||||
Schedule of Quarterly Financial Information [Table Text Block] | ' | ||||||||||||||||
Summary quarterly results are as follows: | |||||||||||||||||
First | Second | Third | Fourth | ||||||||||||||
Quarter | Quarter | Quarter | Quarter | ||||||||||||||
Fiscal year ended October 31, 2013 | |||||||||||||||||
Revenues | $ | 47,117,122 | $ | 48,020,602 | $ | 48,884,076 | $ | 80,079,134 | |||||||||
Gross profit | 832,144 | 3,629,972 | 2,710,179 | 6,581,018 | |||||||||||||
Operating income | 269,449 | 3,047,007 | 2,197,158 | 5,521,116 | |||||||||||||
Net income attributable to GFE | 221,427 | 3,031,943 | 2,173,701 | 4,874,950 | |||||||||||||
Basic and diluted earnings per unit attributable to GFE | 7.23 | 99.06 | 71.02 | 159.31 | |||||||||||||
First | Second | Third | Fourth | ||||||||||||||
Quarter | Quarter | Quarter | Quarter | ||||||||||||||
Fiscal year ended October 31, 2012 | |||||||||||||||||
Revenues | $ | 43,745,776 | $ | 39,025,122 | $ | 42,435,763 | $ | 49,955,382 | |||||||||
Gross profit (loss) | 3,687,950 | 657,416 | 54,694 | (1,946,091 | ) | ||||||||||||
Operating income (loss) | 3,024,214 | 66,935 | (597,187 | ) | (2,489,589 | ) | |||||||||||
Net income (loss) | 3,042,288 | 116,466 | (565,637 | ) | (2,432,510 | ) | |||||||||||
Basic and diluted earnings (loss) per unit | 99.29 | 3.81 | (18.49 | ) | (79.36 | ) | |||||||||||
First Quarter | Second Quarter | Third Quarter | Fourth Quarter | ||||||||||||||
Fiscal year ended October 31, 2011 | |||||||||||||||||
Revenues | $ | 30,716,346 | $ | 34,537,750 | $ | 45,414,923 | $ | 45,852,470 | |||||||||
Gross profit | 3,533,733 | 3,704,535 | 2,068,381 | 4,861,424 | |||||||||||||
Operating income | 2,975,612 | 3,245,729 | 1,550,481 | 4,393,545 | |||||||||||||
Net income | 3,011,596 | 3,270,110 | 1,586,882 | 4,423,268 | |||||||||||||
Basic and diluted earnings per unit | 98.24 | 106.67 | 51.76 | 144.29 | |||||||||||||
Summary_of_Significant_Account3
Summary of Significant Accounting Policies P,P, & E Useful Life (Details) | 12 Months Ended |
Oct. 31, 2013 | |
Land Improvements [Member] | Minimum [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Property, Plant and Equipment, Useful Life | '5 years |
Land Improvements [Member] | Maximum [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Property, Plant and Equipment, Useful Life | '20 years |
Building and Building Improvements [Member] | Minimum [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Property, Plant and Equipment, Useful Life | '10 years |
Building and Building Improvements [Member] | Maximum [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Property, Plant and Equipment, Useful Life | '30 years |
Grain Handling Equipment [Member] | Minimum [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Property, Plant and Equipment, Useful Life | '5 years |
Grain Handling Equipment [Member] | Maximum [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Property, Plant and Equipment, Useful Life | '15 years |
Mechanical Equipment [Member] | Minimum [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Property, Plant and Equipment, Useful Life | '5 years |
Mechanical Equipment [Member] | Maximum [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Property, Plant and Equipment, Useful Life | '15 years |
Office Equipment [Member] | Minimum [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Property, Plant and Equipment, Useful Life | '5 years |
Office Equipment [Member] | Maximum [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Property, Plant and Equipment, Useful Life | '10 years |
Summary_of_Significant_Account4
Summary of Significant Accounting Policies Narrative (Details) | 3 Months Ended | 12 Months Ended |
Oct. 31, 2013 | Oct. 31, 2013 | |
gal | ||
Equity Method Investment, Ownership Percentage | 60.80% | 60.80% |
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 39.20% | 39.20% |
Granite Falls Energy [Member] | ' | ' |
Plant production capacity | ' | 60,000,000 |
Production (Actual) | ' | 70,000,000 |
Measurement, Rolling Twelve Months | '12 | ' |
Heron Lake Bioenergy [Member] | ' | ' |
Plant production capacity | ' | 55,000,000 |
Heron Lake Bioenergy [Member] | Maximum [Member] | ' | ' |
Plant production capacity | ' | 59,200,000 |
Summary_of_Significant_Account5
Summary of Significant Accounting Policies Depreciation Expense (Details) (USD $) | 12 Months Ended | ||
Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 | |
Real Estate and Accumulated Depreciation [Line Items] | ' | ' | ' |
Depreciation | $5,937,000 | $4,161,000 | $3,979,000 |
Risks_and_Uncertainties_Narrat
Risks and Uncertainties Narrative (Details) | Oct. 31, 2013 |
Minimum [Member] | ' |
Concentration Risk [Line Items] | ' |
Sales Revenue, Goods, Net, Percentage | 80.00% |
Minimum [Member] | Corn Contracts [Member] | ' |
Concentration Risk [Line Items] | ' |
Percent of Cost of Goods Sold | 70.00% |
Maximum [Member] | ' |
Concentration Risk [Line Items] | ' |
Sales Revenue, Goods, Net, Percentage | 85.00% |
Percent of Cost of Goods Sold | 80.00% |
Acquisition_Details
Acquisition (Details) (USD $) | 9 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | |||||||
Jul. 31, 2013 | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 | Oct. 31, 2010 | Jul. 31, 2013 | Jul. 31, 2013 | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 | Jul. 31, 2013 | Jul. 31, 2013 | |
governor | Project Viking, LLC [Member] | Heron Lake Bioenergy [Member] | Heron Lake Bioenergy [Member] | Heron Lake Bioenergy [Member] | Heron Lake Bioenergy [Member] | Capital Unit, Class A [Member] | Capital Unit, Class B [Member] | |||||
gal | ||||||||||||
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net Income (Loss) Attributable to Noncontrolling Interest | ' | $526,752 | $0 | $0 | ' | ' | ' | $527,000 | ' | ' | ' | ' |
Debt Instrument, Fair Value Disclosure | ' | ' | ' | ' | ' | ' | ' | 36,500,000 | ' | ' | ' | ' |
Debt premium | ' | ' | ' | ' | ' | ' | ' | 2,300,000 | ' | ' | ' | ' |
Business Acquisition, Pro Forma Revenue | ' | 349,304,556 | 343,821,978 | 320,641,864 | ' | ' | ' | ' | ' | ' | ' | ' |
Cash Acquired from Acquisition | ' | 1,158,774 | 685,828 | 13,064,560 | 10,664,225 | ' | 1,022,764 | ' | ' | ' | ' | ' |
Business Acquisition, Cost of Acquired Entity, Cash Paid | 8,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Equity Method Investment, Ownership Percentage | 12.82% | ' | ' | ' | ' | 100.00% | 63.30% | ' | ' | ' | ' | ' |
Business Acquisition, Cost of Acquired Entity, Purchase Price | 17,024,500 | ' | ' | ' | ' | ' | 17,024,500 | ' | ' | ' | ' | ' |
Plant production capacity | ' | ' | ' | ' | ' | ' | 50,000,000 | ' | ' | ' | ' | ' |
Membership Units, Acquired | ' | ' | ' | ' | ' | ' | 39,080,949 | ' | ' | ' | 24,080,949 | 15,000,000 |
Membership Units, Issued | ' | 30,606 | 30,606 | 30,656 | ' | ' | 61,697,104 | ' | ' | ' | ' | ' |
Board of Governors, Seats Appointed | 5 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Board of Governors, Total Seats | 9 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | ' | 39.20% | ' | ' | ' | ' | 36.66% | ' | ' | ' | ' | ' |
Business Acquisition, Purchase Price Allocation, Notes Payable and Long-term Debt | 4,024,500 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Business Acquisition, Cost of Acquired Entity, Liabilities Incurred | 5,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restricted Cash and Cash Equivalents | ' | 393,750 | 494,000 | ' | ' | ' | 510,955 | ' | ' | ' | ' | ' |
Accounts Receivable, Net, Current | ' | ' | ' | ' | ' | ' | 3,107,121 | 3,107,000 | ' | ' | ' | ' |
Inventory, Net | ' | 12,370,277 | 12,013,169 | ' | ' | ' | 2,303,157 | ' | ' | ' | ' | ' |
Prepaid Expense, Current | ' | ' | ' | ' | ' | ' | 1,107,025 | ' | ' | ' | ' | ' |
Property, Plant and Equipment, Net | ' | 88,808,855 | 40,418,082 | ' | ' | ' | 51,625,774 | ' | ' | ' | ' | ' |
Other Assets, Noncurrent | ' | ' | ' | ' | ' | ' | 924,252 | ' | ' | ' | ' | ' |
Goodwill | ' | 1,372,473 | 0 | ' | ' | ' | 1,372,473 | ' | ' | ' | ' | ' |
Total Assets | ' | 112,673,222 | 61,133,132 | ' | ' | ' | 61,973,521 | ' | ' | ' | ' | ' |
Accounts Payable, Current | ' | 3,058,633 | 3,527,840 | ' | ' | ' | -936,893 | ' | ' | ' | ' | ' |
Accrued Liabilities, Current | ' | 696,858 | 318,819 | ' | ' | ' | -399,623 | ' | ' | ' | ' | ' |
Notes Payable | ' | ' | ' | ' | ' | ' | -36,452,764 | ' | ' | ' | ' | ' |
Stockholders' Equity Attributable to Noncontrolling Interest | ' | 8,480,657 | 0 | ' | ' | ' | -7,159,741 | ' | ' | ' | ' | ' |
Business Acquisition, Pro Forma Net Income (Loss) | ' | 4,864,820 | -31,794,779 | 13,612,987 | ' | ' | ' | 712,289 | -20,702,684 | 361,351 | ' | ' |
Earnings Per Share, Basic and Diluted | ' | $327.78 | $5.25 | $400.96 | ' | ' | ' | $116.16 | ($617) | $412.75 | ' | ' |
Management Services Agreement, Initial Term | ' | ' | ' | ' | ' | ' | 'three | ' | ' | ' | ' | ' |
Management Services Agreement, Monthly Fee, Year 1 | ' | ' | ' | ' | ' | ' | 35,000 | ' | ' | ' | ' | ' |
Management Serices Agreement, Monthly Fee Percent of Salaries, Year 2 | ' | ' | ' | ' | ' | ' | 50.00% | ' | ' | ' | ' | ' |
Management Services Agreement, Termination Notice | ' | ' | ' | ' | ' | ' | '90-days | ' | ' | ' | ' | ' |
Goodwill, Allocation Adjustment | ' | ' | ' | ' | ' | ' | ' | 273,000 | ' | ' | ' | ' |
Business Combination, Separately Recognized Transactions, Revenues and Gains Recognized | ' | ' | ' | ' | ' | ' | ' | 38,560,522 | ' | ' | ' | ' |
Business Combinations, Separately Recognized TRansactions, net earnings recognized | ' | ' | ' | ' | ' | ' | ' | $1,305,044 | ' | ' | ' | ' |
Weighted Average Number of Shares Outstanding, Basic | ' | ' | ' | ' | ' | ' | ' | 30,606 | 30,656 | 30,614 | ' | ' |
Weighted Average Number of Shares Outstanding, Diluted | ' | ' | ' | ' | ' | ' | ' | 30,606 | 30,656 | 30,614 | ' | ' |
Inventory_Narrative_Details
Inventory Narrative (Details) (USD $) | 12 Months Ended |
Oct. 31, 2012 | |
Lower of Cost of Market Adjustment | $77,000 |
Inventory_Inventory_Details
Inventory Inventory (Details) (USD $) | Oct. 31, 2013 | Oct. 31, 2012 |
Inventory, Net | $12,370,277 | $12,013,169 |
Raw Materials [Member] | ' | ' |
Inventory, Net | 4,652,465 | 8,977,820 |
Replacement Parts [Member] | ' | ' |
Inventory, Net | 1,636,466 | 584,011 |
Work In Process [Member] | ' | ' |
Inventory, Net | 1,643,574 | 1,150,239 |
Finished Goods [Member] | ' | ' |
Inventory, Net | $4,437,772 | $1,557,546 |
Derivative_Instruments_Narrati
Derivative Instruments Narrative (Details) (USD $) | Oct. 31, 2013 | Oct. 31, 2012 |
Margin requirements [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Restricted Cash and Cash Equivalents, Current | $393,750 | $494,000 |
Corn Contracts [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Outstanding corn derivative instrument | 1,125,000 | 1,235,000 |
Derivative_Instrument_Asset_Li
Derivative Instrument Asset & Liabilities (Details) (USD $) | Oct. 31, 2013 | Oct. 31, 2012 |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative Assets, Current | $0 | $0 |
Derivative Liabilities, Current | -75,113 | -45,563 |
Corn Contracts [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative Assets, Current | 0 | 0 |
Derivative Liabilities, Current | ($75,113) | ($45,563) |
Derivative_Instrument_Income_S
Derivative Instrument, Income Statement (Details) (USD $) | 12 Months Ended | ||
Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 | |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' |
Derivative Instruments, Gain (Loss) Recognized in Income, Net | $155,563 | ($1,651,799) | $1,271,242 |
Corn Contracts [Member] | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' |
derivative cost of goods | 155,563 | -1,651,799 | 1,280,413 |
Natural Gas [Member] | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' |
derivative cost of goods | 0 | 0 | -4,545 |
Ethanol Contracts [Member] | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' |
Derivative Instruments, Ethanol Revenue | $0 | $0 | ($4,626) |
Revolving_Line_of_Credit_Long_2
Revolving Line of Credit & Long Term Debt Narrative (Details) (USD $) | 12 Months Ended | 12 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 0 Months Ended | 3 Months Ended | ||||||||||||||||||||||
Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2013 | Oct. 31, 2013 | Oct. 31, 2013 | Oct. 31, 2013 | Oct. 31, 2012 | Jul. 31, 2013 | Oct. 31, 2013 | Oct. 31, 2012 | Jan. 31, 2013 | Oct. 31, 2013 | Oct. 31, 2012 | Jan. 31, 2013 | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2013 | Oct. 31, 2012 | Jul. 31, 2013 | Aug. 30, 2013 | Oct. 31, 2013 | Oct. 31, 2013 | Oct. 31, 2013 | Oct. 31, 2013 | Oct. 31, 2013 | Oct. 31, 2013 | Oct. 31, 2013 | Oct. 31, 2013 | Jan. 31, 2013 | Jan. 31, 2013 | Oct. 31, 2013 | |
Revolving Operating Loan [Member] | Compensating Balances, Cash and Cash Equivalents [Domain] | Revolving Operating Loan, Net [Member] | Revolving Term Loan [Member] | Revolving Term Loan [Member] | Note Payable at Granite Falls Bank [Member] | Heron Lake Bioenergy [Member] | Heron Lake Bioenergy [Member] | Heron Lake Bioenergy [Member] | Heron Lake Bioenergy [Member] | Heron Lake Bioenergy [Member] | Heron Lake Bioenergy [Member] | Heron Lake Bioenergy [Member] | Heron Lake Bioenergy [Member] | Granite Falls Energy [Member] | Granite Falls Energy [Member] | Project Viking, LLC [Member] | Project Viking, LLC [Member] | Board of Governors [Member] | Unit Holders, non-Board of Governors [Member] | Minimum [Member] | Minimum [Member] | Minimum [Member] | Maximum [Member] | Maximum [Member] | Maximum [Member] | Convertible Subordinated Debt [Member] | Common Class A [Member] | Common Class A [Member] | |||
Revolving Operating Loan [Member] | Revolving Operating Loan [Member] | Revolving Operating Loan [Member] | Revolving Term Loan [Member] | Revolving Term Loan [Member] | Revolving Term Loan [Member] | Revolving Term Loan [Member] | Revolving Term Loan [Member] | Long-term Debt [Member] | Revolving Operating Loan [Member] | Revolving Term Loan [Member] | Heron Lake Bioenergy [Member] | Revolving Operating Loan [Member] | Revolving Term Loan [Member] | Heron Lake Bioenergy [Member] | Convertible Subordinated Debt [Member] | Convertible Subordinated Debt [Member] | |||||||||||||||
Revolving Term Loan [Member] | Revolving Term Loan [Member] | ||||||||||||||||||||||||||||||
Line of Credit Facility [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-term Debt | $36,472,763 | ' | ' | $0 | $5,660,000 | ' | ' | $5,000,000 | ' | ' | ' | $20,500,000 | ' | ' | $17,400,000 | ' | $18,000,000 | ' | $4,024,500 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Interest Rate During Period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4.00% | ' | ' | ' | ' | ' | ' | ' | ' | 7.25% | ' | ' |
Line of Credit Facility, Interest Rate Description | ' | ' | '"One Month LIBOR Index Rate," plus 265 | ' | ' | '"One Month LIBOR Index Rate," plus 265 | ' | ' | ' | ' | ' | ' | ' | ' | 'LIBOR plus 3.50% but not less than 5% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Basis Spread on Variable Rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2.80% | 2.80% | 3.50% | 3.05% | 3.05% | 5.00% | ' | ' | ' |
Letters of Credit Reduction, Amount | 49,000 | ' | ' | ' | ' | 2,000,000 | ' | ' | ' | ' | 2,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of Credit Facility, Amount Outstanding | ' | 5,389,588 | ' | ' | ' | 2,513,674 | 4,891,952 | ' | ' | ' | ' | 6,263,158 | 0 | ' | 18,317,800 | 0 | 2,513,674 | 4,891,952 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Letters of Credit Outstanding, Amount | 337,928 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Amortization Period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '10 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Required Additional Payment of Excess Cash Flow, Percent | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 25.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Required Additional Payment of Excess Cash Flow, Amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Interest Rate, Stated Percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5.75% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long Term Debt, Fee on Unused Borrowing | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.35% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Convertible Subordinated Debt, Noncurrent | ' | ' | ' | ' | ' | ' | ' | ' | 4,143,000 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,400,000 | 3,700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Convertible, Conversion Price | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.30 |
Debt Conversion, Converted Instrument, Amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $934,500 | ' |
Conversion of Stock, Shares Converted | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,115,000 | ' |
Revolving_Line_of_Credit_Long_3
Revolving Line of Credit & Long Term Debt Long Term Debt (Details) (USD $) | 12 Months Ended | 12 Months Ended | 3 Months Ended | ||||||||||||||||||||||||||||
Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2013 | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2013 | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2013 | Oct. 31, 2012 | Jan. 31, 2013 | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2013 | Oct. 31, 2012 | |
Shuttlewagon Railcar Mover [Member] | Revolving Term Loan [Member] | Revolving Term Loan [Member] | Revolving Operating Loan, Net [Member] | Granite Falls Energy [Member] | Granite Falls Energy [Member] | Granite Falls Energy [Member] | Granite Falls Energy [Member] | Heron Lake Bioenergy [Member] | Heron Lake Bioenergy [Member] | Heron Lake Bioenergy [Member] | Heron Lake Bioenergy [Member] | Heron Lake Bioenergy [Member] | Heron Lake Bioenergy [Member] | Heron Lake Bioenergy [Member] | Heron Lake Bioenergy [Member] | Heron Lake Bioenergy [Member] | Heron Lake Bioenergy [Member] | Heron Lake Bioenergy [Member] | Heron Lake Bioenergy [Member] | Heron Lake Bioenergy [Member] | Heron Lake Bioenergy [Member] | Heron Lake Bioenergy [Member] | Heron Lake Bioenergy [Member] | Heron Lake Bioenergy [Member] | Agrinatural, LLC [Member] | Agrinatural, LLC [Member] | Agrinatural, LLC [Member] | Agrinatural, LLC [Member] | |||
Revolving Term Loan [Member] | Revolving Term Loan [Member] | Corn Oil Separation [Member] | Corn Oil Separation [Member] | Revolving Operating Loan [Member] | Revolving Operating Loan [Member] | Revolving Operating Loan [Member] | Water Assessment [Member] | Water Assessment [Member] | Revolving Term Loan [Member] | Revolving Term Loan [Member] | Water Treatment Plant [Member] | Water Treatment Plant [Member] | Water Supply [Member] | Water Supply [Member] | Electrical Company [Member] | Electrical Company [Member] | Natural Gas Pipeline Construction Loan [Member] | Natural Gas Pipeline Construction Loan [Member] | |||||||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-term Debt, Maturities, Repayments of Principal in Year Two | $2,846,762 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shuttlewagon Railcar Mover Loan | ' | ' | ' | ' | ' | ' | 382,918 | 497,636 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Letters of Credit Outstanding, Amount | 337,928 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
LOC Term | ' | ' | 5 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Interest Rate, Stated Percentage | ' | ' | 3.88% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5.75% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-term Debt | 36,472,763 | ' | ' | ' | ' | 5,660,000 | ' | ' | 18,000,000 | ' | ' | ' | ' | ' | ' | 20,500,000 | ' | ' | ' | 17,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-term Debt, Current Maturities | -3,490,808 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Letters of Credit Reduction, Amount | 49,000 | ' | ' | 2,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-term Debt, Maturities, Repayments of Principal in Year Three | 21,602,578 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-term Debt, Maturities, Repayments of Principal in Year Four | 522,563 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-term Debt, Maturities, Repayments of Principal in Year Five | 7,022,813 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-term Debt, Maturities, Repayments of Principal after Year Five | 987,239 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-term Debt, less current portion | 32,981,955 | 5,274,870 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of Credit Facility, Amount Outstanding | ' | 5,389,588 | ' | 2,513,674 | 4,891,952 | ' | ' | ' | 2,513,674 | 4,891,952 | ' | ' | 640,653 | 0 | ' | 6,263,158 | 0 | 2,246,771 | 0 | 18,317,800 | 0 | 152,698 | 0 | 205,209 | 0 | 293,750 | 0 | 300,000 | 0 | 1,013,132 | 0 |
Current portion long-term debt | 3,490,808 | 114,718 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Convertible Subordinated Debt, Noncurrent | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $4,143,000 | $0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Leases_Narrative_Details
Leases Narrative (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||
Oct. 31, 2013 | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 | |
Operating Leases, Future Minimum Payments Due, Next Twelve Months | 2,602,286 | $2,602,286 | ' | ' |
Operating Leases, Future Minimum Payments, Due in Two Years | 1,640,775 | 1,640,775 | ' | ' |
Operating Leases, Future Minimum Payments, Due in Three Years | 940,910 | 940,910 | ' | ' |
Operating Leases, Future Minimum Payments, Due in Four Years | 474,004 | 474,004 | ' | ' |
Operating Leases, Future Minimum Payments, Due in Five Years | 60,816 | 60,816 | ' | ' |
Operating Leases, Future Minimum Payments Due | 5,718,791 | 5,718,791 | ' | ' |
Operating Leases, Rent Expense | ' | 1,800,000 | 2,200,000 | 1,800,000 |
Hopper Cars [Member] | ' | ' | ' | ' |
Operating Leases, Rent Expense, Net | ' | 75 | ' | ' |
Rail Cars [Member] | ' | ' | ' | ' |
Operating Leases, Rent Expense, Net | ' | 176 | ' | ' |
Hopper Cars [Member] | ' | ' | ' | ' |
Operating Leases, Rent Expense, Net | ' | 620 | ' | ' |
Rail Cars [Member] | ' | ' | ' | ' |
Operating Leases, Rent Expense, Net | ' | 121,000 | ' | ' |
Hopper Cars [Member] | ' | ' | ' | ' |
Operating Leases, Rent Expense, Net | ' | 0.03 | ' | ' |
Hopper Cars [Member] | ' | ' | ' | ' |
Operating Leases, Rent Expense, Net | ' | 36,000 | ' | ' |
Rail Cars [Member] | ' | ' | ' | ' |
Operating Leases, Rent Expense, Net | ' | 1,437,000 | 1,278,000 | 1,171,000 |
Hopper Cars [Member] | ' | ' | ' | ' |
Operating Leases, Rent Expense, Net | ' | 557,000 | 552,000 | 553,000 |
Contract Length | '5 years | ' | ' | ' |
Carrying (Reported) Amount, Fair Value Disclosure [Member] | ' | ' | ' | ' |
Derivative Liabilities | -75,113 | -75,113 | -45,563 | ' |
Fair Value, Measurements, Recurring [Member] | ' | ' | ' | ' |
Derivative Liabilities | -75,113 | -75,113 | -45,563 | ' |
Fair Value, Inputs, Level 1 [Member] | ' | ' | ' | ' |
Derivative Liabilities | -75,113 | -75,113 | -45,563 | ' |
Fair Value, Inputs, Level 2 [Member] | ' | ' | ' | ' |
Derivative Liabilities | 0 | 0 | 0 | ' |
Fair Value, Inputs, Level 3 [Member] | ' | ' | ' | ' |
Derivative Liabilities | 0 | $0 | $0 | ' |
Fair_Value_Derivative_Instrume
Fair Value Derivative Instrument (Details) (USD $) | Oct. 31, 2013 | Oct. 31, 2012 |
Carrying (Reported) Amount, Fair Value Disclosure [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Derivative Liabilities | ($75,113) | ($45,563) |
Fair Value, Inputs, Level 1 [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Derivative Liabilities | -75,113 | -45,563 |
Fair Value, Inputs, Level 1 [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Derivative Liabilities | -75,113 | -45,563 |
Fair Value, Inputs, Level 2 [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Derivative Liabilities | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Derivative Liabilities | $0 | $0 |
Members_Equity_Narrative_Detai
Members' Equity Narrative (Details) (USD $) | 1 Months Ended | 12 Months Ended | ||||
Oct. 31, 2011 | Nov. 30, 2010 | Nov. 30, 2009 | Oct. 31, 2013 | Oct. 31, 2011 | Oct. 31, 2012 | |
Capital Unit [Line Items] | ' | ' | ' | ' | ' | ' |
Membership Units, Issued | 30,656 | ' | ' | 30,606 | 30,656 | 30,606 |
Membership Units, Outstanding | 30,656 | ' | ' | 30,606 | 30,656 | 30,606 |
Membership Units, Redeemed | ' | ' | ' | ' | 50 | ' |
Membership Unit Value, Redeemed | ' | ' | ' | ' | $66,420 | ' |
Distribution Made to Membership, Cash Distribution Paid per Unit | 300 | 300 | 150 | 180 | ' | ' |
Distribution Made to Member or Limited Partner, Cash Distributions Paid | $9,196,800 | ($9,196,800) | ($4,598,400) | $5,509,080 | ($18,393,600) | ' |
Employee_Benefit_Plans_Narrati
Employee Benefit Plans Narrative (Details) (USD $) | 12 Months Ended | ||
Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 | |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Deferred Salary, Company Match | 50.00% | ' | ' |
Description of Defined Contribution Pension and Other Postretirement Plans | 3.00% | ' | ' |
Defined Benefit Plan, Net Periodic Benefit Cost | $50,000 | $51,000 | $46,000 |
Income_Taxes_Narrative_Details
Income Taxes Narrative (Details) (USD $) | 12 Months Ended | |
Oct. 31, 2013 | Oct. 31, 2012 | |
Income Tax Disclosure [Abstract] | ' | ' |
Income Tax Reconciliation, Change in Deferred Tax Assets Valuation Allowance | $112,673,222 | $61,133,132 |
Capitalized start-up costs | 625,720 | 715,109 |
Income Tax Reconciliation, Income Tax Expense (Benefit), at Federal Statutory Income Tax Rate | -24,977,852 | -25,653,678 |
Unrealized Gain (Loss) on Derivatives | 75,113 | 45,563 |
Capitalized inventory | 35,761 | 10,957 |
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Changes, Net | -10,396,697 | 0 |
Net Income, Tax Basis of Assets | 78,035,267 | 36,251,083 |
Net Income, Financial Statement Basis of Liabilities | 44,305,219 | 11,277,807 |
Debt premium | -2,023,441 | 0 |
Net Income, Tax Basis of Liabilities | $42,281,778 | $11,277,807 |
Commitments_and_Contingencies_
Commitments and Contingencies Narrative (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||
Jan. 31, 2013 | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 | |
Purchase Commitment, Excluding Long-term Commitment [Line Items] | ' | ' | ' | ' |
Selling and Marketing Expense | ' | $796,000 | $743,000 | $1,006,000 |
Entity-Wide Revenue, Major Customer, Percentage | 100.00% | ' | ' | ' |
Natural Gas [Member] | ' | ' | ' | ' |
Purchase Commitment, Excluding Long-term Commitment [Line Items] | ' | ' | ' | ' |
Future Commitment, Dollar | ' | 0 | 719,000 | ' |
Future Commitments, Natural Gas | ' | 1,600,000 | ' | ' |
Future Commitment, Pipeline | ' | 9.5 | ' | ' |
Future Commitment, DT | ' | 1,400,000 | ' | ' |
Corn Contracts [Member] | ' | ' | ' | ' |
Purchase Commitment, Excluding Long-term Commitment [Line Items] | ' | ' | ' | ' |
Inventory Dollars, Outside Storage | ' | 2,346,000 | ' | ' |
Accounts Payable | ' | 4,002,000 | 1,996,000 | ' |
Commitments and Contingencies | ' | 350,000 | ' | ' |
Inventory, Outside storage | ' | 550,000 | ' | ' |
Purchases For Inventory | ' | 153,216,000 | 148,289,000 | 123,676,000 |
Ethanol Contracts [Member] | ' | ' | ' | ' |
Purchase Commitment, Excluding Long-term Commitment [Line Items] | ' | ' | ' | ' |
Future Commitment, Dollar | ' | 6,283,000 | 8,747,000 | ' |
Revenue Concentration, Future Commitment | ' | 36.00% | ' | ' |
Distillers Grains [Member] | ' | ' | ' | ' |
Purchase Commitment, Excluding Long-term Commitment [Line Items] | ' | ' | ' | ' |
Future Commitment, Dollar | ' | 3,052,000 | 1,773,000 | ' |
Revenue Concentration, Future Commitment | ' | 27.00% | 65.00% | ' |
Initial Length [Member] | ' | ' | ' | ' |
Purchase Commitment, Excluding Long-term Commitment [Line Items] | ' | ' | ' | ' |
Written Notice | ' | 'P1Y | ' | ' |
Renewal Notice [Member] | ' | ' | ' | ' |
Purchase Commitment, Excluding Long-term Commitment [Line Items] | ' | ' | ' | ' |
Written Notice | ' | 'P90D | ' | ' |
Corn Oil [Member] | ' | ' | ' | ' |
Purchase Commitment, Excluding Long-term Commitment [Line Items] | ' | ' | ' | ' |
Written Notice | ' | '90 days | ' | ' |
Contract, Initial Length | ' | 'one year | ' | ' |
Fees and Commissions | ' | -74,000 | -55,000 | -44,000 |
Distillers Grains [Member] | ' | ' | ' | ' |
Purchase Commitment, Excluding Long-term Commitment [Line Items] | ' | ' | ' | ' |
Written Notice | ' | 'P90D | ' | ' |
Contract, Initial Length | ' | 'P1Y | ' | ' |
Fees and Commissions | ' | ($745,000) | ($650,000) | ($460,000) |
Natural Gas [Member] | ' | ' | ' | ' |
Purchase Commitment, Excluding Long-term Commitment [Line Items] | ' | ' | ' | ' |
Written Notice | ' | 'P12M | ' | ' |
Contract, Initial Length | ' | 'P1Y | ' | ' |
Concentrations_Narrative_Detai
Concentrations Narrative (Details) | 3 Months Ended | 12 Months Ended | |||||
Jan. 31, 2013 | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 | |
Ethanol Contracts [Member] | Ethanol Contracts [Member] | Ethanol Contracts [Member] | Distillers Grain & Corn Oil Contracts [Member] | Distillers Grain & Corn Oil Contracts [Member] | Distillers Grain & Corn Oil Contracts [Member] | ||
Revenue, Major Customer [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Entity-Wide Revenue, Major Customer, Percentage | 100.00% | 64.00% | 80.00% | 83.00% | 19.00% | 21.00% | 17.00% |
Entity-Wide Accounts Receivable, Major Customer, Percentage | ' | 65.00% | 81.00% | ' | 20.00% | 18.00% | ' |
Quarterly_Financial_Data_Unaud2
Quarterly Financial Data (Unaudited) Quarterly Financial Data (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||
Oct. 31, 2013 | Jul. 31, 2013 | Apr. 30, 2013 | Jan. 31, 2013 | Oct. 31, 2012 | Jul. 31, 2012 | Apr. 30, 2012 | Jan. 31, 2012 | Oct. 31, 2011 | Jul. 31, 2011 | Apr. 30, 2011 | Jan. 31, 2011 | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 | |
Quarterly Financial Information Disclosure [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | $80,079,134 | $48,884,076 | $48,020,602 | $47,117,122 | $49,955,382 | $42,435,763 | $39,025,122 | $43,745,776 | $45,852,470 | $45,414,923 | $34,537,750 | $30,716,346 | $224,100,934 | $175,162,043 | $156,521,489 |
Gross Profit | 6,581,018 | 2,710,179 | 3,629,972 | 832,144 | -1,946,091 | 54,694 | 657,416 | 3,687,950 | 4,861,424 | 2,068,381 | 3,704,535 | 3,533,733 | 14,023,313 | 2,453,969 | 14,168,073 |
Operating Income (Loss) | 5,521,116 | 2,197,158 | 3,047,007 | 269,449 | -2,489,589 | -597,187 | 66,935 | 3,024,214 | 4,393,545 | 1,550,481 | 3,245,729 | 2,975,612 | 11,034,730 | 4,373 | 12,165,367 |
Net Income (Loss) Available to Members | $4,874,950 | $2,173,701 | $3,031,943 | $221,427 | ($2,432,510) | ($565,637) | $116,466 | $3,042,288 | $4,423,268 | $1,586,882 | $3,270,110 | $3,011,596 | ' | ' | ' |
Earnings Per Share, Diluted | $159.31 | $71.02 | $99.06 | $7.23 | ($79.36) | ($18.49) | $3.81 | $99.29 | $144.29 | $51.76 | $106.67 | $98.24 | ' | ' | ' |