Document_and_Entity_Informatio
Document and Entity Information Document | 3 Months Ended | |
Jan. 31, 2015 | Mar. 16, 2015 | |
Entity Information [Line Items] | ||
Entity Registrant Name | Granite Falls Energy, LLC | |
Entity Central Index Key | 1181749 | |
Current Fiscal Year End Date | -21 | |
Entity Filer Category | Non-accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | 31-Jan-15 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | FALSE | |
Entity Common Stock, Shares Outstanding | 30,606 |
Condensed_Balance_Sheets
Condensed Balance Sheets (USD $) | Jan. 31, 2015 | Oct. 31, 2014 |
Current Assets | ||
Cash | $4,516,800 | $27,209,010 |
Restricted cash | 1,044,524 | 492,099 |
Accounts receivable | 4,376,667 | 9,281,701 |
Inventory | 13,408,584 | 10,725,144 |
Derivative Asset, Current | 357,700 | 1,295,738 |
Prepaid expense and other current assets | 689,783 | 398,473 |
Total current assets | 24,394,058 | 49,402,165 |
Property, Plant and Equipment [Abstract] | ||
Land and improvements | 13,348,732 | 12,307,063 |
Railroad improvements | 8,005,523 | 8,005,523 |
Process equipment and tanks | 119,598,114 | 113,602,431 |
Administration building | 1,015,361 | 1,015,361 |
Office equipment | 391,323 | 265,792 |
Rolling stock | 1,834,026 | 1,834,026 |
Construction in progress | 1,028,769 | 7,109,796 |
Gross property, plant and equipment | 145,221,848 | 144,139,992 |
Less accumulated depreciation | 58,498,890 | 56,111,647 |
Net property, plant and equipment | 86,722,958 | 88,028,345 |
Goodwill | 1,372,473 | 1,372,473 |
Other Assets | 850,013 | 859,550 |
Total Assets | 113,339,502 | 139,662,533 |
Current Liabilities | ||
Bank Overdrafts | 3,425,828 | 0 |
Current portion of long-term debt | 728,760 | 846,235 |
Accounts payable | 7,723,554 | 8,086,119 |
Corn payable to FCE | 1,823,062 | 1,997,540 |
Commodity derivative instruments | 164,875 | 0 |
Accrued liabilities current | 636,658 | 649,994 |
Total current liabilities | 14,502,737 | 11,579,888 |
Long-Term Debt, less current portion | 5,439,299 | 2,112,412 |
Members' Equity, 30,606 units authorized, issued and outstanding | 74,782,949 | 103,152,157 |
Stockholders' Equity Attributable to Noncontrolling Interest | 18,614,517 | 22,818,076 |
Members' Equity | 93,397,466 | 125,970,233 |
Total Liabilities and Members' Equity | $113,339,502 | $139,662,533 |
Condensed_Balance_Sheets_Paren
Condensed Balance Sheets (Parenthetical) | Jan. 31, 2015 | Oct. 31, 2014 |
Members' Equity, units authorized, issued and outstanding | 30,606 | 30,656 |
Condensed_Statements_of_Operat
Condensed Statements of Operations (USD $) | 3 Months Ended | |
Jan. 31, 2015 | Jan. 31, 2014 | |
Revenues | $58,692,502 | $77,463,813 |
Cost of Goods Sold | 53,064,397 | 63,043,355 |
Gross Profit | 5,628,105 | 14,420,458 |
Operating Expenses | 1,423,387 | 1,295,501 |
Other Income (Expense) | 4,204,718 | 13,124,957 |
Other Nonoperating Income (Expense) [Abstract] | ||
Other income, net | 46,974 | 56,559 |
Interest income | 3,648 | 307 |
Interest expense | -70,467 | -276,746 |
Total other income (expense), net | -19,845 | -219,880 |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 4,184,873 | 12,905,077 |
Net Income | 3,767,092 | 10,554,947 |
Net Income (Loss) Attributable to Noncontrolling Interest | $417,781 | $2,350,130 |
Weighted Average Units Outstanding - Basic and Diluted | 30,606 | 30,606 |
Net Income Per Unit - Basic and Diluted | $123.08 | $344.87 |
Distributions Per Unit, Basic and Diluted | $1,050 | $180 |
Condensed_Statements_of_Cash_F
Condensed Statements of Cash Flows (USD $) | 3 Months Ended | |
Jan. 31, 2015 | Jan. 31, 2014 | |
Payments to Noncontrolling Interests | ($4,621,340) | $0 |
Cash paid during the period for: [Abstract] | ||
Net income | 4,184,873 | 12,905,077 |
Adjustments to reconcile net income to net cash provided by operations: | ||
Depreciation and amortization | 2,396,780 | 2,269,355 |
Change in fair value of derivative instruments | 608,373 | 40,772 |
Gain (Loss) on Disposition of Property Plant Equipment | 0 | -24,119 |
Increase (Decrease) in Operating Assets and Liabilities [Abstract] | ||
Restricted cash | -552,425 | -337,750 |
Derivative Instruments | 494,540 | -201,372 |
Accounts receivable | 4,905,034 | -5,419,054 |
Inventory | -2,683,440 | 2,803,203 |
Prepaid expenses and other current assets | -291,310 | -246,294 |
Accounts payable | -809,997 | -1,782,559 |
Accrued liabilities | -13,336 | 163,325 |
Net Cash Provided by Operating Activities | 8,239,092 | 10,170,584 |
Net Cash Provided by (Used in) Investing Activities [Abstract] | ||
Proceeds from Sale of Property, Plant, and Equipment | 0 | 22,285 |
Payments for capital expenditures | -808,902 | -1,207,483 |
Net Cash Used in Investing Activities | -808,902 | -1,185,198 |
Net Cash Provided by (Used in) Financing Activities [Abstract] | ||
Increase (Decrease) in Book Overdrafts | 3,425,828 | 672,868 |
Proceeds from Issuance of Long-term Debt | 3,354,979 | 759,010 |
Payments on long-term debt | -145,567 | -4,327,961 |
Net Cash Used in Financing Activities | -30,122,400 | -8,405,163 |
Net Increase in Cash | -22,692,210 | 580,223 |
Cash - Beginning of Period | 27,209,010 | 1,158,774 |
Cash - End of Period | 4,516,800 | 1,738,997 |
Supplemental Cash Flow Information [Abstract] | ||
Interest expense | 70,467 | 385,419 |
Cancellation of Accrued Distribution to Noncontrolling Interest | 0 | 84,523 |
Debt Conversion, Original Debt, Amount | 272,954 | 0 |
Distribution Made to Limited Liability Company (LLC) Member, Cash Distributions Paid | ($32,136,300) | ($5,509,080) |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 3 Months Ended |
Jan. 31, 2015 | |
Accounting Policies [Abstract] | |
Summary of Significant Account Policies | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
Basis of Presentation and Principles of Consolidation | |
The accompanying unaudited condensed consolidated balance sheet as of January 31, 2015 is derived from audited consolidated financial statements. The unaudited interim condensed consolidated financial statements of the Company reflect all adjustments consisting only of normal recurring adjustments that are, in the opinion of management, necessary for a fair presentation of financial position and results of operations and cash flows. The results for the three month period ended January 31, 2015 is not necessarily indicative of the results that may be expected for a full fiscal year. Certain information and note disclosures normally included in annual consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) are condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”), although the Company believes that the disclosures made are adequate to make the information not misleading. These condensed consolidated financial statements should be read in conjunction with the Company's audited consolidated financial statements and notes thereto included in its annual report for the year ended October 31, 2014 filed on Form 10-K with the SEC. | |
Nature of Business | |
Granite Falls Energy, LLC ("GFE" or the "Company") 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. | |
Heron Lake BioEnergy, LLC ("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. Additionally, HLBE, through a majority owned subsidiary, operates a natural gas pipeline that provides natural gas to HLBE's ethanol production facility and other customers. | |
Principles of Consolidation | |
The accompanying unaudited condensed consolidated financial statements consolidate the operating results and financial position of GFE, and its 50.6% owned subsidiary, HLBE (through GFE's 100% ownership of Project Viking, LLC). Given the Company’s control over the operations of HLBE and its majority voting, interest, the Company consolidates the unaudited condensed consolidated financial statements of HLBE with GFE's consolidated financial statements. The remaining 49.4% ownership of HLBE is included in the unaudited condensed consolidated financial statements as a non-controlling interest. HLBE, through its wholly owned subsidiary, HLBE Pipeline Company, LLC, owns 73% of Agrinatural Gas, LLC ("Agrinatural"). Given HLBE’s control over the operations of Agrinatural and its majority voting interest, HLBE consolidates the financial statements of Agrinatural with its consolidated financial statements, with the equity and earnings attributed to the remaining 27% noncontrolling interest. All intercompany balances and transactions are eliminated in consolidation. | |
Accounting Estimates | |
Management uses estimates and assumptions in preparing these condensed consolidated 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, inventory, and inventory purchase and sale commitments, and the assumptions used in the impairment analysis of long-lived assets and goodwill. Actual results may differ from previously estimated amounts, and such differences may be material to our condensed consolidated 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. | |
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. | |
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 on 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 condensed consolidated 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 4. |
Inventory
Inventory | 3 Months Ended | |||||||
Jan. 31, 2015 | ||||||||
Inventory [Abstract] | ||||||||
Inventory | INVENTORY | |||||||
Inventories consist of the following: | ||||||||
January 31, 2015 | October 31, 2014 | |||||||
(Unaudited) | ||||||||
Raw materials | $ | 4,249,089 | $ | 4,867,269 | ||||
Spare parts | 2,462,283 | 2,449,995 | ||||||
Work in process | 1,510,360 | 1,459,253 | ||||||
Finished goods | 5,186,852 | 1,948,627 | ||||||
Totals | $ | 13,408,584 | $ | 10,725,144 | ||||
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 adjustment on inventories for the three month periods ended January 31, 2015 or 2014. |
Derivative_Instruments
Derivative Instruments | 3 Months Ended | ||||||||||||
Jan. 31, 2015 | |||||||||||||
Derivative Instruments [Abstract] | |||||||||||||
Derivative Instruments | DERIVATIVE INSTRUMENTS | ||||||||||||
As of January 31, 2015, the total notional amount of the Company's outstanding corn derivative instruments was approximately 11,375,000 bushels, comprised of 5,720,000 and 5,655,000bushel equivalent positions held by GFE and HLBE, respectively, that were entered into to hedge forecasted corn purchases through March 2016. There may be offsetting positions that are not shown on a net basis that could lower the notional amount of positions outstanding. | |||||||||||||
The following tables provide details regarding the Company's derivative instruments at January 31, 2015, none of which were designated as hedging instruments: | |||||||||||||
Balance Sheet location | Assets | Liabilities | |||||||||||
Corn contracts - GFE | Commodity derivative instruments | $ | — | $ | 164,875 | ||||||||
Corn contracts - HLBE | Commodity derivative instruments | 357,700 | — | ||||||||||
Totals | $ | 357,700 | $ | 164,875 | |||||||||
In addition, at January 31, 2015, the Company maintained approximately $1,045,000 of restricted cash, comprised of approximately $877,000 held by GFE and $168,000 held by HLBE related to margin requirements for the Company’s commodity derivative instrument positions. | |||||||||||||
As of October 31, 2014, the total notional amount of the Company's outstanding corn derivative instruments was approximately 7,135,000 bushels, comprised of 4,345,000 and 2,790,000 bushel equivalent positions held by GFE and HLBE, respectively, that were entered into to hedge forecasted corn purchases through July 2015. There may be offsetting positions that are shown on a net basis that could lower the notional amount of positions outstanding. | |||||||||||||
The following tables provide details regarding the Company's derivative instruments at October 31, 2014, none of which were designated as hedging instruments: | |||||||||||||
Balance Sheet location | Assets | Liabilities | |||||||||||
Corn contracts - GFE | Commodity derivative instruments | $ | 858,238 | $ | — | ||||||||
Corn contracts - HLBE | Commodity derivative instruments | $ | 437,500 | $ | — | ||||||||
Totals | $ | 1,295,738 | $ | — | |||||||||
In addition, at October 31, 2014, the Company maintained approximately $492,000 of restricted cash, comprised of approximately $228,000 held by GFE and $264,000 held by HLBE related to margin requirements for the Company’s commodity derivative instrument positions. | |||||||||||||
The following tables provide details regarding the losses from Company's derivative instruments in statements of operations, none of which are designated as hedging instruments: | |||||||||||||
Statement of Operations location | Three Months Ended January 31, | ||||||||||||
2015 | 2014 | ||||||||||||
Corn contracts | Cost of Goods Sold | $ | (608,373 | ) | $ | (40,772 | ) | ||||||
Total Loss | $ | (608,373 | ) | $ | (40,772 | ) | |||||||
FAIR_VALUE_Notes
FAIR VALUE (Notes) | 3 Months Ended | |||||||||||||||
Jan. 31, 2015 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||
Fair Value Disclosures [Text Block] | FAIR VALUE | |||||||||||||||
The following table provides information on those derivative assets and liabilities measured at fair value on a recurring basis at January 31, 2015: | ||||||||||||||||
Fair Value Measurement Using | ||||||||||||||||
Financial Assets: | Carrying Amount in Balance Sheet | Quoted Prices in Active Markets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||
Commodity Derivative Instruments | $ | 357,700 | $ | 357,700 | $ | — | $ | — | ||||||||
Financial Liabilities | ||||||||||||||||
Commodity Derivative Instruments | $ | (164,875 | ) | $ | (164,875 | ) | $ | — | $ | — | ||||||
The following table provides information on those derivative liabilities measured at fair value on a recurring basis at October 31, 2014: | ||||||||||||||||
Fair Value Measurement Using | ||||||||||||||||
Financial Assets: | Carrying Amount in Balance Sheet | Quoted Prices in Active Markets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||
Commodity Derivative Instruments | $ | 1,295,738 | $ | 1,295,738 | $ | — | $ | — | ||||||||
The Company determines 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. |
Revolving_Line_of_Credit
Revolving Line of Credit | 3 Months Ended | |||||||
Jan. 31, 2015 | ||||||||
Revolving Line of Credit [Abstract] | ||||||||
Debt Disclosure [Text Block] | DEBT FACILITIES | |||||||
Debt financing consists of the following: | ||||||||
January 31, 2015 | October 31, 2014 | |||||||
Heron Lake BioEnergy: | (unaudited) | |||||||
Revolving term loan to lending institution, see terms below | $ | 3,354,979 | $ | — | ||||
Assessments payable | 2,284,237 | 2,292,913 | ||||||
Note payable to electrical company | 200,000 | 218,750 | ||||||
Note payable to noncontrolling interest member of Agrinatural | 300,000 | 300,000 | ||||||
Corn oil recovery system note payable | 28,843 | 146,984 | ||||||
Total | 6,168,059 | 2,958,647 | ||||||
Less amounts due on demand or within one year | 728,760 | 846,235 | ||||||
Net long term debt | $ | 5,439,299 | $ | 2,112,412 | ||||
Granite Falls Energy: | ||||||||
GFE has a revolving term loan facility, under which GFE could initially borrow, repay, and re-borrow in an amount up to $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 amount available on this facility at both January 31, 2015, and October 31, 2014 was $16,000,000. The amount available was reduced to $14,000,000 on March 1, 2015. The interest rate is based on the bank's "One Month LIBOR Index Rate," plus 3.05%. GFE had no outstanding balance on this loan on January 31, 2015 or October 31, 2014. | ||||||||
The Company's credit facility requires GFE to comply with certain financial covenants that require minimum debt service coverage and working capital requirements. As of January 31, 2015 and October 31, 2014, GFE was in compliance with these financial covenants and expects to be in compliance throughout fiscal 2015. The credit facility is secured by substantially all assets of the Company. There are no savings account balance collateral requirements as part of this credit facility. | ||||||||
At January 31, 2015, GFE also had letters of credit totaling approximately $289,000 with the bank as part of a credit requirement of Northern Natural Gas. | ||||||||
Heron Lake BioEnergy: | ||||||||
HLBE has a revolving term loan with a lender totaling $28,000,000. Amounts borrowed by HLBE under the Revolving Term Loan and repaid or prepaid may be re-borrowed at any time prior to the March 1, 2022 maturity date. Under the terms of the Credit Facility, the Revolving Term Loan commitment is scheduled to decline by $3.5 million annually, beginning on March 1, 2015 and each anniversary date thereafter. Interest on the Revolving Term Loan accrues at a variable rate equal to 3.25% above the One-Month London Interbank Offered Rate (" LIBOR ") Index rate. HLBE may elect to enter into a fixed interest rate on this loan at various times throughout the term of the loan as provided in the loan agreements. HLBE also agreed to pay an unused commitment fee on the unused portion of the Revolving Term Loan commitment at the rate of 0.50% per annum. The Revolving Term Loan is subject to a prepayment fee for any prepayment on the Term Loan prior to July 1, 2016 due to refinancing. The Credit Facility contains customary covenants. The loan is secured by substantially all of HLBE's assets including a subsidiary guarantee. The outstanding balance on the revolving term loan totaled approximately $3,355,000 and $0 at January 31, 2015, and October 31, 2014, respectively. The interest rate on the revolving term loan was 3.42% and 3.41% at January 31, 2015, and October 31, 2014, respectively. | ||||||||
As part of the Credit Facility closing, HLBE entered into an Administrative Agency Agreement with CoBank, ACP (“CoBank”). CoBank purchased a participation interest in the AgStar loans and was appointed the administrative agent for the purpose of servicing the loans. As a result, CoBank will act as the agent for AgStar with respect to the Credit Facility. | ||||||||
In October 2003, HLBE entered into an industrial water supply development and distribution agreement with the City of Heron Lake, Jackson County, and Minnesota Soybean Processors. In consideration of this agreement, HLBE and Minnesota Soybean Processors are allocated equally the debt service on $735,000 in water revenue bonds that were issued by the City to support this project that mature in February 2019. The parties have agreed that prior to the scheduled expiration of the agreement, they will negotiate in good faith to replace the agreement with a further agreement regarding the wells and related facilities. In May 2006, HLBE entered into an industrial water supply treatment agreement with the City of Heron Lake and Jackson County. Under this agreement, HLBE pays monthly installments over 24 months starting January 1, 2007 equal to one years' debt service on approximately $3.6 million in water revenue bonds, which will be returned to HLBE if any funds remain after final payment in full on the bonds and assuming HLBE complies with all payment obligations under the agreement. As of January 31, 2015, there was a total of $2.3 million in outstanding water revenue bonds. HLBE classifies its obligations under these bonds as assessments payable. The interest rates on the bonds range from 0.50% to 8.73%. | ||||||||
Estimated annual maturities of debt at January 31, 2015 are as follows based on the most recent debt agreements: | ||||||||
2015 | $ | 728,760 | ||||||
2016 | 418,728 | |||||||
2017 | 362,086 | |||||||
2018 | 333,015 | |||||||
2019 | 307,934 | |||||||
After 2019 | 4,017,536 | |||||||
Total long-term debt | $ | 6,168,059 | ||||||
Leases
Leases | 3 Months Ended |
Jan. 31, 2015 | |
Leases [Abstract] | |
Leases | LEASES |
GFE leases equipment, primarily rail cars, under operating leases through 2017. Rent expense for these leases was approximately $595,000 and $537,500 for the three months ended January 31, 2015 and 2014, respectively. | |
HLBE leases equipment, primarily rail cars, under operating leases through 2017. Rent expense for these leases was approximately $489,000 and $448,000 for the three months ended January 31, 2015, and 2014, respectively. |
Members_Equity
Members' Equity | 3 Months Ended |
Jan. 31, 2015 | |
Members' Equity [Abstract] | |
Members' Equity | MEMBERS' EQUITY |
GFE 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 January 31, 2015 and October 31, 2014, GFE had 30,606 membership units authorized, issued, and outstanding. | |
In December 2014, the Board of Governors of GFE declared a cash distribution of $1,050 per unit or $32,136,300 for unit holders of record as of December 18, 2014. The distribution was paid on January 9, 2015. | |
In December 2014, the Board of Governors of HLBE declared a cash distribution of $.12 per unit or $9,351,853 for unit holders of record as of December 18, 2014. The distribution was paid on January 23, 2015. |
Commitments_and_Contingencies
Commitments and Contingencies | 3 Months Ended |
Jan. 31, 2015 | |
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 Company (FCE), a member. Under the current agreement, the Company agrees to purchase all of the corn needed for the operation of the plant from FCE. The price of the corn purchased will be the bid price the member establishes for the plant plus a set fee per bushel. | |
At January 31, 2015, GFE also had 320,000 bushels of stored corn totaling approximately $1,089,700 with FCE that is included in inventory. At January 31, 2015, GFE had cash and cash basis contracts for forward corn purchase commitments for approximately 2,100,000 bushels of corn for delivery through March 2015. At January 31, 2015, HLBE had cash and basis contracts for forward corn purchase commitments for approximately 2,000,000 bushels for deliveries through October 2015. | |
Ethanol Contracts | |
At January 31, 2015, GFE had forward contracts to sell approximately $13,356,000 of ethanol for various delivery periods from February 2015 through March 2015 which approximates 90% of its anticipated ethanol sales during that period. | |
At January 31, 2015, HLBE had forward contracts to sell approximately $13,375,000 of ethanol for various delivery periods from February 2015 through March 2015 which approximates 90% of its anticipated ethanol sales during that period. | |
Distillers Grain Contracts | |
At January 31, 2015, GFE had forward contracts to sell approximately $2,065,000 of distillers grain for deliveries through June 2015 which approximates 23% of its anticipated distillers grain sales during that period. | |
At January 31, 2015, HLBE had forward contracts to sell approximately $7,415,000 of distillers' grains for delivery through September 2015 which approximates 40% of its anticipated distillers grain sales during that period. | |
Natural Gas | |
At January 31, 2015, GFE had forward contracts to buy approximately $540,000 of natural gas for deliveries through March 2015 which approximates 50% of its anticipated natural gas purchases during that period. At January 31, 2015, HLBE had forward contracts to buy approximately $540,000 of natural gas for deliveries through March 2015 which approximates 50% of its anticipated natural gas purchases during that period. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies Level 2 (Policies) | 3 Months Ended |
Jan. 31, 2015 | |
Accounting Policies [Abstract] | |
Consolidation, Policy [Policy Text Block] | Principles of Consolidation |
The accompanying unaudited condensed consolidated financial statements consolidate the operating results and financial position of GFE, and its 50.6% owned subsidiary, HLBE (through GFE's 100% ownership of Project Viking, LLC). Given the Company’s control over the operations of HLBE and its majority voting, interest, the Company consolidates the unaudited condensed consolidated financial statements of HLBE with GFE's consolidated financial statements. The remaining 49.4% ownership of HLBE is included in the unaudited condensed consolidated financial statements as a non-controlling interest. HLBE, through its wholly owned subsidiary, HLBE Pipeline Company, LLC, owns 73% of Agrinatural Gas, LLC ("Agrinatural"). Given HLBE’s control over the operations of Agrinatural and its majority voting interest, HLBE consolidates the financial statements of Agrinatural with its consolidated financial statements, with the equity and earnings attributed to the remaining 27% noncontrolling interest. All intercompany balances and transactions are eliminated in consolidation. | |
Basis of Presentation and Significant Accounting Policies [Text Block] | Basis of Presentation and Principles of Consolidation |
The accompanying unaudited condensed consolidated balance sheet as of January 31, 2015 is derived from audited consolidated financial statements. The unaudited interim condensed consolidated financial statements of the Company reflect all adjustments consisting only of normal recurring adjustments that are, in the opinion of management, necessary for a fair presentation of financial position and results of operations and cash flows. The results for the three month period ended January 31, 2015 is not necessarily indicative of the results that may be expected for a full fiscal year. Certain information and note disclosures normally included in annual consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) are condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”), although the Company believes that the disclosures made are adequate to make the information not misleading. These condensed consolidated financial statements should be read in conjunction with the Company's audited consolidated financial statements and notes thereto included in its annual report for the year ended October 31, 2014 filed on Form 10-K with the SEC. | |
Nature of Operations [Text Block] | Nature of Business |
Granite Falls Energy, LLC ("GFE" or the "Company") 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. | |
Heron Lake BioEnergy, LLC ("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. Additionally, HLBE, through a majority owned subsidiary, operates a natural gas pipeline that provides natural gas to HLBE's ethanol production facility and other customers. | |
Use of Estimates, Policy [Policy Text Block] | Accounting Estimates |
Management uses estimates and assumptions in preparing these condensed consolidated 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, inventory, and inventory purchase and sale commitments, and the assumptions used in the impairment analysis of long-lived assets and goodwill. Actual results may differ from previously estimated amounts, and such differences may be material to our condensed consolidated 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. | |
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. | |
Derivatives, Policy [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 on 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 condensed consolidated 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 4. |
Inventory_Level_3_Tables
Inventory Level 3 (Tables) | 3 Months Ended | |||||||
Jan. 31, 2015 | ||||||||
Inventory [Abstract] | ||||||||
Schedule of Inventory, Current [Table Text Block] | Inventories consist of the following: | |||||||
January 31, 2015 | October 31, 2014 | |||||||
(Unaudited) | ||||||||
Raw materials | $ | 4,249,089 | $ | 4,867,269 | ||||
Spare parts | 2,462,283 | 2,449,995 | ||||||
Work in process | 1,510,360 | 1,459,253 | ||||||
Finished goods | 5,186,852 | 1,948,627 | ||||||
Totals | $ | 13,408,584 | $ | 10,725,144 | ||||
Derivative_Instruments_Tables
Derivative Instruments (Tables) | 3 Months Ended | |||||||||||||||||||
Jan. 31, 2015 | Jan. 31, 2014 | |||||||||||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||||||||||||
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 January 31, 2015, none of which were designated as hedging instruments: | The following tables provide details regarding the Company's derivative instruments at October 31, 2014, none of which were designated as hedging instruments: | ||||||||||||||||||
Balance Sheet location | Assets | Liabilities | Balance Sheet location | Assets | Liabilities | |||||||||||||||
Corn contracts - GFE | Commodity derivative instruments | $ | — | $ | 164,875 | Corn contracts - GFE | Commodity derivative instruments | $ | 858,238 | $ | — | |||||||||
Corn contracts - HLBE | Commodity derivative instruments | 357,700 | — | Corn contracts - HLBE | Commodity derivative instruments | $ | 437,500 | $ | — | |||||||||||
Totals | $ | 357,700 | $ | 164,875 | Totals | $ | 1,295,738 | $ | — | |||||||||||
Derivative_Instruments_Derivat
Derivative Instruments Derivative presentation in equity (Tables) | 3 Months Ended | ||||||||||||
Jan. 31, 2015 | |||||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||||||
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance [Table Text Block] | |||||||||||||
Statement of Operations location | Three Months Ended January 31, | ||||||||||||
2015 | 2014 | ||||||||||||
Corn contracts | Cost of Goods Sold | $ | (608,373 | ) | $ | (40,772 | ) | ||||||
Total Loss | $ | (608,373 | ) | $ | (40,772 | ) | |||||||
FAIR_VALUE_Tables
FAIR VALUE (Tables) | 3 Months Ended | |||||||||||||||
Jan. 31, 2015 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||
Fair Value Disclosures [Text Block] | FAIR VALUE | |||||||||||||||
The following table provides information on those derivative assets and liabilities measured at fair value on a recurring basis at January 31, 2015: | ||||||||||||||||
Fair Value Measurement Using | ||||||||||||||||
Financial Assets: | Carrying Amount in Balance Sheet | Quoted Prices in Active Markets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||
Commodity Derivative Instruments | $ | 357,700 | $ | 357,700 | $ | — | $ | — | ||||||||
Financial Liabilities | ||||||||||||||||
Commodity Derivative Instruments | $ | (164,875 | ) | $ | (164,875 | ) | $ | — | $ | — | ||||||
The following table provides information on those derivative liabilities measured at fair value on a recurring basis at October 31, 2014: | ||||||||||||||||
Fair Value Measurement Using | ||||||||||||||||
Financial Assets: | Carrying Amount in Balance Sheet | Quoted Prices in Active Markets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||
Commodity Derivative Instruments | $ | 1,295,738 | $ | 1,295,738 | $ | — | $ | — | ||||||||
The Company determines 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. | ||||||||||||||||
Fair Value, by Balance Sheet Grouping [Table Text Block] | The following table provides information on those derivative assets and liabilities measured at fair value on a recurring basis at January 31, 2015: | |||||||||||||||
Fair Value Measurement Using | ||||||||||||||||
Financial Assets: | Carrying Amount in Balance Sheet | Quoted Prices in Active Markets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||
Commodity Derivative Instruments | $ | 357,700 | $ | 357,700 | $ | — | $ | — | ||||||||
Financial Liabilities | ||||||||||||||||
Commodity Derivative Instruments | $ | (164,875 | ) | $ | (164,875 | ) | $ | — | $ | — | ||||||
The following table provides information on those derivative liabilities measured at fair value on a recurring basis at October 31, 2014: | ||||||||||||||||
Fair Value Measurement Using | ||||||||||||||||
Financial Assets: | Carrying Amount in Balance Sheet | Quoted Prices in Active Markets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||
Commodity Derivative Instruments | $ | 1,295,738 | $ | 1,295,738 | $ | — | $ | — | ||||||||
LongTerm_Debt_Level_3_Tables
Long-Term Debt Level 3 (Tables) | 3 Months Ended | |||||||
Jan. 31, 2015 | ||||||||
Item 6. Long-Term Debt [Abstract] | ||||||||
Schedule of Long-term Debt Instruments [Table Text Block] | Debt financing consists of the following: | |||||||
January 31, 2015 | October 31, 2014 | |||||||
Heron Lake BioEnergy: | (unaudited) | |||||||
Revolving term loan to lending institution, see terms below | $ | 3,354,979 | $ | — | ||||
Assessments payable | 2,284,237 | 2,292,913 | ||||||
Note payable to electrical company | 200,000 | 218,750 | ||||||
Note payable to noncontrolling interest member of Agrinatural | 300,000 | 300,000 | ||||||
Corn oil recovery system note payable | 28,843 | 146,984 | ||||||
Total | 6,168,059 | 2,958,647 | ||||||
Less amounts due on demand or within one year | 728,760 | 846,235 | ||||||
Net long term debt | $ | 5,439,299 | $ | 2,112,412 | ||||
LongTerm_Debt_Long_Term_Debt_T
Long-Term Debt Long Term Debt (Tables) | 3 Months Ended | |||||||
Jan. 31, 2015 | ||||||||
Statement of Financial Position [Abstract] | ||||||||
Schedule of Maturities of Long-term Debt [Table Text Block] | Estimated annual maturities of debt at January 31, 2015 are as follows based on the most recent debt agreements: | |||||||
2015 | $ | 728,760 | ||||||
2016 | 418,728 | |||||||
2017 | 362,086 | |||||||
2018 | 333,015 | |||||||
2019 | 307,934 | |||||||
After 2019 | 4,017,536 | |||||||
Total long-term debt | $ | 6,168,059 | ||||||
Schedule of Long-term Debt Instruments [Table Text Block] | Debt financing consists of the following: | |||||||
January 31, 2015 | October 31, 2014 | |||||||
Heron Lake BioEnergy: | (unaudited) | |||||||
Revolving term loan to lending institution, see terms below | $ | 3,354,979 | $ | — | ||||
Assessments payable | 2,284,237 | 2,292,913 | ||||||
Note payable to electrical company | 200,000 | 218,750 | ||||||
Note payable to noncontrolling interest member of Agrinatural | 300,000 | 300,000 | ||||||
Corn oil recovery system note payable | 28,843 | 146,984 | ||||||
Total | 6,168,059 | 2,958,647 | ||||||
Less amounts due on demand or within one year | 728,760 | 846,235 | ||||||
Net long term debt | $ | 5,439,299 | $ | 2,112,412 | ||||
Summary_of_Significant_Account2
Summary of Significant Accounting Policies narrative (Details) | 3 Months Ended |
Jan. 31, 2015 | |
gal | |
Plant production capacity | 60,000,000 |
Production (Actual) | 70,000,000 |
Measurement, Rolling Twelve Months | twelve |
Heron Lake Bioenergy [Member] | |
Noncontrolling Interest, Ownership Percentage by Parent | 50.60% |
Plant production capacity | 55,000,000 |
Production (Actual) | 59,200,000 |
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 49.40% |
Project Viking, LLC [Member] | |
Noncontrolling Interest, Ownership Percentage by Parent | 100.00% |
Agrinatural, LLC [Member] | |
Noncontrolling Interest, Ownership Percentage by Parent | 73.00% |
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 27.00% |
Risks_and_Uncertainties_Detail
Risks and Uncertainties (Details) | 3 Months Ended |
Jan. 31, 2015 | |
Risks and Uncertainties [Abstract] | |
Risks and Uncertainties [Text Block] | 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, corn oil, and natural gas 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 75 - 85% of total revenues and corn costs typically average 65 - 85% 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. | |
Minimum [Member] | |
Concentration Risk [Line Items] | |
Percent of Cost of Goods Sold | 65.00% |
Minimum [Member] | Ethanol Contracts [Member] | |
Concentration Risk [Line Items] | |
Sales Revenue, Goods, Net | 75.00% |
Maximum [Member] | |
Concentration Risk [Line Items] | |
Percent of Cost of Goods Sold | 85.00% |
Maximum [Member] | Ethanol Contracts [Member] | |
Concentration Risk [Line Items] | |
Sales Revenue, Goods, Net | 85.00% |
Inventory_Details_Details
Inventory Details (Details) (USD $) | Jan. 31, 2015 | Oct. 31, 2014 |
Inventory [Abstract] | ||
Raw materials | $4,249,089 | $4,867,269 |
Spare parts | 2,462,283 | 2,449,995 |
Work in process | 1,510,360 | 1,459,253 |
Finished goods | 5,186,852 | 1,948,627 |
Inventory, Net | $13,408,584 | $10,725,144 |
Derivative_Instruments_Details
Derivative Instruments (Details) (USD $) | 3 Months Ended | ||
Jan. 31, 2015 | Jan. 31, 2014 | Oct. 31, 2014 | |
bu | bu | ||
Derivative [Line Items] | |||
Restricted Cash and Cash Equivalents | $1,044,524 | $492,099 | |
Derivative, Gain (Loss) on Derivative, Net | -608,373 | -40,772 | |
Outstanding corn derivative instrument | 11,375,000 | 7,135,000 | |
Derivative Assets, Current | 357,700 | 1,295,738 | |
Commodity derivative instruments | 164,875 | 0 | |
Corn Contracts [Member] | |||
Derivative [Line Items] | |||
Derivative, Gain (Loss) on Derivative, Net | -608,373 | -40,772 | |
Granite Falls Energy, LLC [Member] | |||
Derivative [Line Items] | |||
Restricted Cash and Cash Equivalents | 877,000 | 228,000 | |
Outstanding corn derivative instrument | 5,720,000 | 4,345,000 | |
Granite Falls Energy, LLC [Member] | Corn Contracts [Member] | |||
Derivative [Line Items] | |||
Derivative Assets, Current | 0 | 858,238 | |
Commodity derivative instruments | -164,875 | 0 | |
Heron Lake BioEnergy, LLC [Member] | |||
Derivative [Line Items] | |||
Restricted Cash and Cash Equivalents | 168,000 | 264,000 | |
Outstanding corn derivative instrument | 5,655,000 | 2,790,000 | |
Heron Lake BioEnergy, LLC [Member] | Corn Contracts [Member] | |||
Derivative [Line Items] | |||
Derivative Assets, Current | 357,700 | 437,500 | |
Commodity derivative instruments | $0 | $0 |
FAIR_VALUE_Details
FAIR VALUE (Details) (USD $) | Jan. 31, 2015 | Oct. 31, 2014 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative Asset, Fair Value of Collateral | $357,700 | |
Derivative Liability, Fair Value, Gross Liability | -164,875 | 1,295,738 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative Asset, Fair Value of Collateral | 357,700 | |
Derivative Liability, Fair Value, Gross Liability | -164,875 | 1,295,738 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative Asset, Fair Value of Collateral | 0 | |
Derivative Liability, Fair Value, Gross Liability | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative Asset, Fair Value of Collateral | 0 | |
Derivative Liability, Fair Value, Gross Liability | $0 | $0 |
Revolving_Line_of_Credit_Detai
Revolving Line of Credit (Details) (USD $) | 3 Months Ended | ||
Jan. 31, 2015 | Jan. 31, 2014 | Jul. 31, 2014 | |
Line of Credit Facility [Line Items] | |||
Letters of Credit Outstanding, Amount | 289,000 | ||
Savings Account Balance Requirement [Member] | Granite Falls Energy, LLC [Member] | |||
Line of Credit Facility [Line Items] | |||
Debt Instrument, Covenant Description | 0 | ||
Heron Lake Bioenergy [Member] | Water Treatment Plant [Member] | City/County Juristiction [Member] | |||
Line of Credit Facility [Line Items] | |||
Debt Instrument, Interest Rate, Stated Percentage Rate Range, Maximum | 8.73% | ||
Line of Credit Facility, Maximum Borrowing Capacity | 3,600,000 | ||
Heron Lake Bioenergy [Member] | Revolving Term Loan [Member] | CoBank [Member] | |||
Line of Credit Facility [Line Items] | |||
Debt Instrument, Interest Rate, Stated Percentage Rate Range, Maximum | 3.25% | ||
Line of Credit Facility, Maximum Borrowing Capacity | 28,000,000 | ||
Debt Instrument, Interest Rate During Period | 3.42% | 3.41% | |
Rail Cars [Member] | Heron Lake Bioenergy [Member] | |||
Line of Credit Facility [Line Items] | |||
Operating Leases, Rent Expense | 489,000 | 448,000 |
Revolving_Line_of_Credit_Line_
Revolving Line of Credit Line of Credit (Details) (USD $) | 3 Months Ended | ||||
Jan. 31, 2015 | Jan. 31, 2014 | Oct. 31, 2014 | Jul. 31, 2014 | Mar. 01, 2015 | |
Debt Instrument [Line Items] | |||||
Long-term Debt, Current Maturities | ($728,760) | ($846,235) | |||
Long-Term Debt, less current portion | 5,439,299 | 2,112,412 | |||
Line of Credit Future Reduction, Amount | 2,000,000 | ||||
Line of Credit Facility, Interest Rate Description | "One Month LIBOR Index Rate," plus 3.05% | ||||
Letters of Credit Outstanding, Amount | 289,000 | ||||
Revolving Term Loan [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term Debt | 18,000,000 | ||||
Line of Credit Facility, Maximum Borrowing Capacity, Superseded | 16,000,000 | ||||
Heron Lake Bioenergy [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term Debt | 6,168,059 | 2,958,647 | |||
Long-term Debt, Current Maturities | -728,760 | -846,235 | |||
Long-Term Debt, less current portion | 5,439,299 | 2,112,412 | |||
Agrinatural, LLC [Member] | |||||
Debt Instrument [Line Items] | |||||
Line of Credit Facility, Amount Outstanding | 300,000 | 300,000 | |||
CoBank [Member] | Heron Lake Bioenergy [Member] | |||||
Debt Instrument [Line Items] | |||||
Line of Credit Facility, Amount Outstanding | 3,354,979 | 0 | |||
CoBank [Member] | Heron Lake Bioenergy [Member] | Revolving Term Loan [Member] | |||||
Debt Instrument [Line Items] | |||||
Line of Credit Facility, Amount Outstanding | 3,000,000 | 0 | |||
Line of Credit Future Reduction, Amount | 4,000,000 | ||||
Debt Instrument, Interest Rate, Stated Percentage Rate Range, Maximum | 3.25% | ||||
Line of Credit Facility, Interest Rate Description | LIBOR | ||||
Line of Credit Facility, Maximum Borrowing Capacity | 28,000,000 | ||||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.50% | ||||
Debt Instrument, Interest Rate During Period | 3.42% | 3.41% | |||
City/County Juristiction [Member] | Heron Lake Bioenergy [Member] | |||||
Debt Instrument [Line Items] | |||||
Line of Credit Facility, Amount Outstanding | 2,284,237 | 2,292,913 | |||
City/County Juristiction [Member] | Heron Lake Bioenergy [Member] | Water Revenue Bonds [Member] | |||||
Debt Instrument [Line Items] | |||||
Line of Credit Facility, Maximum Borrowing Capacity | 735,000 | ||||
City/County Juristiction [Member] | Heron Lake Bioenergy [Member] | Water Treatment Plant [Member] | |||||
Debt Instrument [Line Items] | |||||
Line of Credit Facility, Amount Outstanding | 2,300,000 | ||||
Debt Instrument, Interest Rate, Stated Percentage Rate Range, Minimum | 0.50% | ||||
Debt Instrument, Interest Rate, Stated Percentage Rate Range, Maximum | 8.73% | ||||
Line of Credit Facility, Maximum Borrowing Capacity | 3,600,000 | ||||
Federated Electric [Member] | Heron Lake Bioenergy [Member] | |||||
Debt Instrument [Line Items] | |||||
Line of Credit Facility, Amount Outstanding | 200,000 | 218,750 | |||
SRS [Member] | Heron Lake Bioenergy [Member] | |||||
Debt Instrument [Line Items] | |||||
Line of Credit Facility, Amount Outstanding | 28,843 | 146,984 | |||
Savings Account Balance Requirement [Member] | Granite Falls Energy, LLC [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Covenant Description | 0 | ||||
Subsequent Event [Member] | Revolving Term Loan [Member] | |||||
Debt Instrument [Line Items] | |||||
Line of Credit Facility, Maximum Borrowing Capacity, Superseded | $14,000,000 |
LongTerm_Debt_capital_lease_De
Long-Term Debt capital lease (Details) (USD $) | Jan. 31, 2015 |
Revolving Term Loan [Member] | |
Debt Instrument [Line Items] | |
Long-term Debt | $18,000,000 |
Heron Lake Bio-energy LLC [Member] | |
Debt Instrument [Line Items] | |
Long-term Debt, Maturities, Repayments of Principal in Next Rolling Twelve Months | 728,760 |
Long-term Debt, Maturities, Repayments of Principal in Rolling Year Two | 418,728 |
Long-term Debt, Maturities, Repayments of Principal in Rolling Year Three | 362,086 |
Long-term Debt, Maturities, Repayments of Principal in Rolling Year Four | 333,015 |
Long-term Debt, Maturities, Repayments of Principal in Rolling Year Five | 307,934 |
Long-term Debt, Maturities, Repayments of Principal after Year Five | 4,017,536 |
Long-term Debt | $6,168,059 |
Leases_Details
Leases (Details) (Rail Cars [Member], USD $) | 3 Months Ended | |
Jan. 31, 2015 | Jan. 31, 2014 | |
Granite Falls Energy, LLC [Member] | ||
Operating Leases, Rent Expense | $595,000 | $537,500 |
Heron Lake Bioenergy [Member] | ||
Operating Leases, Rent Expense | $489,000 | $448,000 |
Members_Equity_Details
Members' Equity (Details) (USD $) | 3 Months Ended | |
Jan. 31, 2015 | Oct. 31, 2014 | |
Class of Stock [Line Items] | ||
Limited Partners' Capital Account, Units Outstanding | 30,606 | 30,606 |
Granite Falls Energy, LLC [Member] | ||
Class of Stock [Line Items] | ||
Distribution Made to Limited Partner, Distributions Declared, Per Unit | $1,050 | |
Distribution Made to Limited Partner, Cash Distributions Declared | $32,136,300 | |
Heron Lake Bio-energy LLC [Member] | ||
Class of Stock [Line Items] | ||
Distribution Made to Limited Partner, Distributions Declared, Per Unit | $0 | |
Distribution Made to Limited Partner, Cash Distributions Declared | $9,351,853 |
Commitments_and_Contingencies_
Commitments and Contingencies (Details) (USD $) | 3 Months Ended |
Jan. 31, 2015 | |
Distillers Grains [Member] | |
Future Commitment, Dollar | $2,065,000 |
Revenue Concentration, Future Commitment | 23.00% |
Granite Falls Energy, LLC [Member] | Ethanol Contracts [Member] | |
Future Commitment, Dollar | 13,356,000 |
Revenue Concentration, Future Commitment | 90.00% |
Granite Falls Energy, LLC [Member] | Natural Gas [Member] | |
Future Commitment, Dollar | 540,000 |
Heron Lake Bioenergy [Member] | Ethanol Contracts [Member] | |
Future Commitment, Dollar | 13,375,000 |
Revenue Concentration, Future Commitment | 90.00% |
Heron Lake Bioenergy [Member] | Distillers Grains [Member] | |
Future Commitment, Dollar | 7,415,000 |
Revenue Concentration, Future Commitment | 40.00% |
Heron Lake Bioenergy [Member] | Natural Gas [Member] | |
Future Commitment, Dollar | 540,000 |
FCE [Member] | Granite Falls Energy, LLC [Member] | Corn Contracts [Member] | |
Inventory, Outside storage | 320,000 |
Inventory Dollars, Outside Storage | $1,089,700 |
Other Companies [Member] | Granite Falls Energy, LLC [Member] | Corn Contracts [Member] | |
Future Commitment | 2,100,000 |
Other Companies [Member] | Heron Lake Bioenergy [Member] | Corn Contracts [Member] | |
Future Commitment | 2,000,000 |
Next Two Months [Member] | Granite Falls Energy, LLC [Member] | |
future commitment, percent of anticipated usage | 50.00% |
Next Two Months [Member] | Heron Lake Bioenergy [Member] | |
future commitment, percent of anticipated usage | 50.00% |