Document and Entity Information
Document and Entity Information Document - USD ($) | 12 Months Ended | ||
Oct. 31, 2015 | Jan. 27, 2016 | Apr. 30, 2015 | |
Document Information [Line Items] | |||
Entity Registrant Name | Granite Falls Energy, LLC | ||
Entity Central Index Key | 1,181,749 | ||
Current Fiscal Year End Date | --10-31 | ||
Entity Filer Category | Non-accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Oct. 31, 2015 | ||
Document Fiscal Year Focus | 2,015 | ||
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 | $ 20,037,000 |
Balance Sheets
Balance Sheets - USD ($) | Oct. 31, 2015 | Oct. 31, 2014 |
Current Assets | ||
Cash | $ 12,696,536 | $ 27,209,010 |
Restricted cash | 0 | 492,099 |
Accounts receivable | 9,667,472 | 9,281,701 |
Inventory | 12,212,025 | 10,725,144 |
Commodity derivative instruments | 677,149 | 1,295,738 |
Prepaid expenses and other current assets | 259,862 | 398,473 |
Total current assets | 35,513,044 | 49,402,165 |
Property, Plant and Equipment | ||
Land and improvements | 13,348,732 | 12,307,063 |
Railroad improvements | 8,005,523 | 8,005,523 |
Process equipment and tanks | 123,405,024 | 113,602,431 |
Administration building | 907,652 | 1,015,361 |
Office equipment | 569,328 | 265,792 |
Rolling stock | 1,777,863 | 1,834,026 |
Construction in progress | 2,013,765 | 7,109,796 |
Property, Plant and Equipment, Gross | 150,027,887 | 144,139,992 |
Less accumulated depreciation | 65,723,725 | 56,111,647 |
Net property, plant and equipment | 84,304,162 | 88,028,345 |
Goodwill | 1,372,473 | 1,372,473 |
Other Assets | 821,402 | 859,550 |
Total Assets | 122,011,081 | 139,662,533 |
Current Liabilities | ||
Current portion long-term debt | 517,957 | 846,235 |
Bank Overdrafts | 1,836,682 | 0 |
Accounts payable | 4,643,130 | 8,086,119 |
Corn payable to FCE - related party | 1,486,247 | 1,997,540 |
Commodity derivative instruments | 1,114 | 0 |
Accrued liabilities | 654,550 | 649,994 |
Total current liabilities | 9,139,680 | 11,579,888 |
Long-term Debt, less current portion | 6,711,975 | 2,112,412 |
Members' Equity, 30,656 units authorized, issued and outstanding | 84,602,607 | 103,152,157 |
Stockholders' Equity Attributable to Noncontrolling Interest | 21,556,819 | 22,818,076 |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 106,159,426 | 125,970,233 |
Total Liabilities and Members’ Equity | $ 122,011,081 | $ 139,662,533 |
Balance Sheets (Parenthetical)
Balance Sheets (Parenthetical) - shares | Oct. 31, 2015 | Oct. 31, 2014 |
Condensed Balance Sheets [Abstract] | ||
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, 2015 | Oct. 31, 2014 | Oct. 31, 2013 | |
Revenues | $ 231,254,508 | $ 300,954,984 | $ 224,100,934 |
Cost of Goods Sold - primarily related party | 208,654,190 | 237,433,629 | 210,077,621 |
Gross Profit | 22,600,318 | 63,521,355 | 14,023,313 |
Operating Expenses | 5,175,915 | 5,150,506 | 2,988,583 |
Operating Income | 17,424,403 | 58,370,849 | 11,034,730 |
Other income (expense), net | 38,169 | 242,920 | (48,373) |
Other Income (Expense) | |||
Interest income | 9,369 | 8,886 | 813 |
Interest expense | (525,108) | (485,238) | (428,397) |
Settlement of Debt Premium | 0 | 953,086 | 0 |
Total other income (expense), net | (477,570) | 719,654 | (475,957) |
Net Income | 16,946,833 | 59,090,503 | 10,558,773 |
Net Income Attributable to Noncontrolling Interest | 3,360,083 | 10,316,612 | 526,752 |
Net Income Attributable to Granite Falls Energy, LLC | $ 13,586,750 | $ 48,773,891 | $ 10,032,021 |
Weighted Average Units Outstanding - Basic and Diluted | 30,606 | 30,606 | 30,606 |
Net Income Per Unit - Basic and Diluted | $ 443.92 | $ 1,593.61 | $ 327.78 |
Distributions Per Unit - Basic and Diluted | $ 1,050 | $ 180 | $ 0 |
Statement of Changes in Members
Statement of Changes in Members' Equity - USD ($) | Total | Granite Falls Energy [Member] | Parent [Member] | Noncontrolling Interest [Member] |
Members' Equity at Oct. 31, 2012 | $ 49,855,325 | $ 49,855,325 | $ 0 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Income (Loss) from Continuing Operations, Including Portion Attributable to Noncontrolling Interest | 0 | 7,159,741 | 7,159,741 | |
Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders | 0 | (38,336) | (38,336) | |
Noncontrolling Interest, Increase from Subsidiary Equity Issuance | 0 | 832,500 | 832,500 | |
Net Income (Loss) Attributable to Noncontrolling Interest | $ 526,752 | 0 | 526,752 | 526,752 |
Cancellation of accrued distribution to noncontrolling interest | 0 | |||
Net Income (Loss) Attributable to Parent | 10,032,021 | 10,032,021 | 10,032,021 | 0 |
Members' Equity at Oct. 31, 2013 | 59,887,346 | 68,368,003 | 8,480,657 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Distribution Made to Limited Liability Company (LLC) Member, Cash Distributions Paid | (5,509,080) | (5,509,080) | (5,509,080) | 0 |
Noncontrolling Interest, Increase from Subsidiary Equity Issuance | 0 | 3,936,000 | 3,936,000 | |
Net Income (Loss) Attributable to Noncontrolling Interest | 10,316,612 | 0 | 10,316,612 | 10,316,612 |
Cancellation of accrued distribution to noncontrolling interest | 84,807 | 0 | 84,807 | 84,807 |
Net Income (Loss) Attributable to Parent | 48,773,891 | 48,773,891 | 48,773,891 | 0 |
Members' Equity at Oct. 31, 2014 | 103,152,157 | 125,970,233 | 22,818,076 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Distribution Made to Limited Liability Company (LLC) Member, Cash Distributions Paid | (32,136,000) | (32,136,300) | (36,757,640) | (4,621,340) |
Net Income (Loss) Attributable to Noncontrolling Interest | 3,360,083 | 0 | 3,360,083 | 3,360,083 |
Cancellation of accrued distribution to noncontrolling interest | 0 | |||
Net Income (Loss) Attributable to Parent | $ 13,586,750 | 13,586,750 | 13,586,750 | 0 |
Members' Equity at Oct. 31, 2015 | $ 84,602,607 | $ 106,159,426 | $ 21,556,819 |
Statement of Changes in Member6
Statement of Changes in Members' Equity parenthetical | 12 Months Ended |
Oct. 31, 2014shares | |
Statement of Changes in Members' Equity [Abstract] | |
Stock Repurchased During Period, Shares | 50 |
Statements of Cash Flows
Statements of Cash Flows - USD ($) | 12 Months Ended | ||
Oct. 31, 2015 | Oct. 31, 2014 | Oct. 31, 2013 | |
Cash Flows from Operating Activities | |||
Net Income (Loss) | $ 13,586,750 | $ 48,773,891 | $ 10,032,021 |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 16,946,833 | 59,090,503 | 10,558,773 |
Adjustments to reconcile net income to net cash provided by operations: | |||
Depreciation and amortization | 9,650,226 | 9,267,367 | 5,549,204 |
Change in fair value of derivative instruments | (303,925) | (1,134,402) | (155,563) |
Change in operating assets and liabilities | |||
Restricted cash | 492,099 | (98,349) | 611,205 |
Commodity derivative instruments | 923,628 | (236,449) | 185,113 |
Gain (Loss) on Sale of Property Plant Equipment | 0 | 137,397 | 0 |
Accounts receivable | (385,771) | (2,831,007) | 3,910,961 |
Inventory | (1,486,881) | 1,645,133 | 1,946,049 |
Prepaid expenses and other current assets | 138,611 | 698,010 | 176,061 |
Accounts payable | (4,376,733) | (336,051) | (5,995) |
Accrued liabilities | 4,556 | 37,943 | (59,920) |
Gain (loss) in settlement of debt premium | 0 | (953,086) | 0 |
Net Cash Provided by Operating Activities | 21,602,643 | 65,287,009 | 22,715,888 |
Cash Flows from Investing Activities | |||
Payments for capital expenditures | (5,465,444) | (5,182,948) | (2,636,048) |
Proceeds from Sale of Machinery and Equipment | 0 | 80,285 | 540,000 |
Payments to Acquire Businesses, Net of Cash Acquired | 0 | 0 | (6,977,236) |
Net Cash Used in Investing Activities | (5,465,444) | (5,102,663) | (9,073,284) |
Cash Flows from Financing Activities | |||
Proceeds from (Repayments of) Other Long-term Debt | 13,440,989 | 0 | 0 |
Payments on long-term debt | (9,169,704) | (28,418,030) | (16,840,158) |
Restricted cash | 0 | (207,000) | 3,670,500 |
Proceeds from (Repayments of) Bank Overdrafts | 1,836,682 | 0 | 0 |
Payments for Repurchase of Common Stock | (4,621,340) | 0 | 0 |
Member distributions paid | (32,136,300) | (5,509,080) | 0 |
Net Cash Used in Financing Activities | (30,649,673) | (34,134,110) | (13,169,658) |
Net Increase in Cash | (14,512,474) | 26,050,236 | 472,946 |
Cash - Beginning of Period | 27,209,010 | 1,158,774 | 685,828 |
Cash - End of Period | 12,696,536 | 27,209,010 | 1,158,774 |
Cash paid during the period for: | |||
Interest Expense | 525,108 | 1,485,331 | 388,306 |
Supplemental Disclosure of Noncash Investing and Financing Activities | |||
Conversion of subsidiary subordinated convertible notes | 0 | 3,936,000 | 934,500 |
Cancellation of accrued distribution to noncontrolling interest | 0 | 84,807 | 0 |
Distributions to non-controlling interest in accrued expenses | 0 | 0 | 38,336 |
Capital expenditures included in accounts payable | $ 422,451 | $ 3,359,225 | $ 605,750 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Oct. 31, 2015 | |
Summary of Significant Accounting Policies [Abstract] | |
Summary of Significant Account Policies | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 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 60 million gallons, but is currently permitted to produce up to 72.3 million gallons per year of undenatured ethanol on a twelve month rolling sum basis. Additionally, HLBE, through a majority owned subsidiary, operates a natural gas pipeline that provides natural gas to the HLBE’s ethanol production facility and other customers. Principles of Consolidation The accompanying consolidated financial statements consolidate the operating results and financial position of GFE, and its approximately 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 financial statements of HLBE with its consolidated financial statements. The remaining approximately 49.4% ownership of HLBE is included in the 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% non-controlling interest. All intercompany balances and transactions are eliminated in consolidation. The acquisition occurred on July 31, 2013 and therefore the 2013 consolidated statements of operations only include the three month period ended October 31, 2013 of HLBE. See Note 3 for details of acquisition. 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 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 and inventory, 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 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. Agrinatural recognizes revenue when persuasive evidence of an arrangement exists, delivery has occurred or services have been rendered, the fee for the arrangement is fixed or determinable and collectability is reasonably assured. 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 is periodically required to maintain at its broker cash balances related to open commodity derivative instrument positions as discussed in Note 7. 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, 2015 or 2014. It is at least possible this estimate will change in the future. Inventory Inventory is stated at the lower of cost or net realizable value in accordance with the Financial Accounting Standards Board (FASB) Accounting Standards Update (ASU) No. 2015-11 issued in July 2015. See " Recently Issued Accounting Pronouncements, Inventory Measurement (Adopted) " below for additional information regarding ASU No. 2015-11. Cost for all inventories is determined using the first in first out method (FIFO). Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. Inventory consists of raw materials, work in process, finished goods, and supplies. Corn is the primary raw material along with other raw materials. Finished goods consist of ethanol, distillers' grains, and corn oil. 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 normal sales are documented as normal and exempted from accounting and reporting requirements, and therefore, are not marked to market in our 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 7. Property and Equipment Property 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 Railroad improvements 5-20 years Process equipment and tanks 5-15 years Administration building 10-30 years Office equipment 5-10 years Rolling stock 5-15 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. 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 2015 , 2014 , or 2013 that would have triggered impairment testing, and therefore, no impairment expense was recorded during fiscal 2015 , 2014 or 2013. 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 include: 1. Quoted prices in active markets for similar assets or liabilities. 2. Quoted prices in markets that are observable for the asset or liability either directly or indirectly, for substantially the full term of the asset or liability. 3. Inputs that derived primarily from or corroborated by observable market date by correlation or other means. • 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, 2015 , 2014 or 2013 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. 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, 2015 or 2014 that would require disclosure. For years before 2012, the Company is no longer subject to United States Federal or state income tax examinations. 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. 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, 2015 , 2014 , or 2013 . 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. No indicators of impairment existed during fiscal 2015, 2014 or 2013 that would have triggered impairment testing, and therefore, no impairment expense was recorded during 2015, 2014 or 2013. Recently Issued Accounting Pronouncements Inventory Measurement (Adopted) In July 2015, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2015-11, which amended Inventory (Topic 330) Related to Simplifying the Measurement of Inventory of the Accounting Standards Codification. The amended guidance applies to all inventory except that which is measured using last-in, first-out (LIFO) or the retail inventory method. Inventory measured using first-in, first-out (FIFO) or average cost is included in the new amendments. Inventory within the scope of the new guidance should be measured at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. Subsequent measurement is unchanged for inventory measured using LIFO or the retail inventory method. The amendments will take effect for the Company for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. The new guidance should be applied prospectively, and earlier application is permitted as of the beginning of an interim or annual reporting period. The Company has elected to adopt the standard as of November 1, 2014, and it did not have a material effect on the financial statements. Contract Revenue Recognition (Evaluating) In May 2014 and amended in August 2015, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2014-09 which amended the Revenue from Contracts with Customers (Topic 606) of the Accounting Standards Codification. The core principle of the new guidance is that an entity should recognize revenue to reflect the transfer of goods and services to customers in an amount equal to the consideration the entity receives or expects to receive. The guidance will be effective for the Company for annual periods beginning after December 15, 2017, including interim periods within those fiscal years. The Company is still evaluating the guidance and its effect on its financial statements. |
Risks and Uncertainties
Risks and Uncertainties | 12 Months Ended |
Oct. 31, 2015 | |
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 primarily from the sale and distribution of ethanol, distillers' grains and corn oil, which comprises less than 1% of total revenue, 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. The supply and demand for ethanol are impacted by federal and state legislation and regulation, most significantly the Renewable Fuels Standard ("RFS"), and any changes in legislation or regulation could cause the demand for ethanol to decline or its supply to increase, which could have a material adverse effect on our business, results of operations and financial condition, and the ability to operate at a profit. On November 30, 2015, the EPA announced final Renewable Volume Obligation (“RVO”) requirements for the RFS for calendar years 2014, 2015 and 2016. Although the new RVO requirements set are above the proposed reductions, they are below the original requirements set by the RFS. Opponents of ethanol such as large oil companies will likely continue their efforts to repeal or reduce the RFS through lawsuits or lobbying of Congress. Successful reduction or repeal of the blending requirements of the RFS could result in a significant decrease in ethanol demand. Current ethanol nameplate production capacity is approximately 15.5 billion gallons, with operating production capacity at approximately 14.9 billion gallons according to the Renewable Fuels Association (“RFA”). Reduction of blending requirements could reduce the demand for and price of ethanol. If demand for ethanol decreases, it could materially adversely affect our business, results of operations and financial condition. Ethanol has historically traded at a discount to gasoline, however with the recent decline in oil prices, ethanol is currently trading at a premium to gasoline causing a disincentive for discretionary blending of ethanol beyond the required blend rate. Consequently, there may be a negative impact on ethanol pricing and demand, which could result in a material adverse effect on our business, results of operations and financial condition. |
Business Combination (Notes)
Business Combination (Notes) | 12 Months Ended |
Oct. 31, 2015 | |
Business Combinations [Abstract] | |
Mergers, Acquisitions and Dispositions Disclosures [Text Block] | On July 31, 2013, the Company acquired 63.3% of the outstanding membership units of 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% non-controlling 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 $3.1 million , 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 $273,000 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 period: For the year ended October 31, 2013 Unaudited Revenues $ 349,304,556 Net income, including portion attributable to non-controlling interest of $712,289 $ 4,864,820 Net income per unit 30,614 weighted average units outstanding - basic and diluted $ 116.16 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 the period presented. |
Fair Value
Fair Value | 12 Months Ended |
Oct. 31, 2015 | |
Fair Value [Abstract] | |
Fair Value | FAIR VALUE The following table provides information on those derivative assets and liabilities measured at fair value on a recurring basis at October 31, 2015 : Carrying Amount in Balance Sheet October 31, 2015 Fair Value October 31, 2015 Fair Value Measurement Using Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant unobservable inputs (Level 3) Financial Asset: Commodity Derivative Instruments $ 677,149 $ 677,149 $ 677,149 $ — $ — Financial Liabilities Commodity Derivative Instruments $ 1,114 $ 1,114 $ 1,114 $ — $ — The following table provides information on those derivative assets measured at fair value on a recurring basis at October 31, 2014 : Carrying Amount in Balance Sheet October 31, 2014 Fair Value October 31, 2014 Fair Value Measurement Using Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant unobservable inputs (Level 3) Financial Asset: Commodity Derivative Instruments $ 1,295,738 $ 1,295,738 $ 1,295,738 $ — $ — 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. |
Concentrations
Concentrations | 12 Months Ended |
Oct. 31, 2015 | |
Concentration Risk [Line Items] | |
Concentration Risk Disclosure [Text Block] | CONCENTRATIONS GFE sells all of the ethanol, distiller grains, and corn oil produced to two customers under marketing agreements at October 31, 2015 . One customer accounted for approximately 89% and 93% of the outstanding accounts receivable balance at October 31, 2015 and 2014 , respectively. Two customers accounted for approximately 99% , 99% and 100% of revenue for the years ended October 31, 2015 , 2014 , and 2013 , respectively. HLBE sells all of the ethanol and distiller grains produced to two customers under marketing agreements at October 31, 2015 . Two customers accounted for approximately 97% and 88% of the outstanding accounts receivable balance at October 31, 2015 and 2014, respectively. These customers accounted for approximately 97% , 96% and 97% of revenue for the years ended October 31, 2015 , 2014 , and 2013 , respectively. |
Inventory
Inventory | 12 Months Ended |
Oct. 31, 2015 | |
Inventory [Abstract] | |
Inventory | INVENTORY Inventory consists of the following: October 31, 2015 October 31, 2014 Raw materials $ 4,504,388 $ 4,867,269 Supplies 2,631,452 2,449,995 Work in process 1,445,084 1,459,253 Finished goods 3,631,101 1,948,627 Totals $ 12,212,025 $ 10,725,144 The Company performs a lower of cost or net realizable value 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 net realizable value analysis, the Company did not record a material lower of cost or net realizable charge on certain inventories for the fiscal years ended October 31, 2015 , 2014 or 2013 . |
Derivative Instruments
Derivative Instruments | 12 Months Ended |
Oct. 31, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities Disclosure [Text Block] | DERIVATIVE INSTRUMENTS As of October 31, 2015 , the total notional amount of the Company's outstanding corn derivative instruments was approximately 2,615,000 bushels, comprised of 740,000 and 1,875,000 bushel equivalent positions held by GFE and HLBE, respectively, that were entered into to hedge forecasted corn purchases through December 2016. 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, 2015 , none of which were designated as hedging instruments: Balance Sheet location Assets Liabilities Corn contracts - GFE Commodity derivative instruments $ — $ 1,114 Corn contracts - HLBE Commodity derivative instruments 677,149 — Totals $ 677,149 $ 1,114 As of October 31, 2015 the Company did not have any of cash collateral (restricted cash) related to commodity derivatives held by a broker. 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 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, 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, as of October 31, 2014 the Company maintained approximately $492,000 of restricted cash, comprised of approximately $228,000 held by GFE and approximately $264,000 held by HLBE related to margin requirements for the Company's commodity derivative instrument positions. The following tables provide details regarding the gains 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 2015 2014 2013 Corn contracts Cost of Goods Sold $ 303,925 $ 1,134,402 $ 155,563 Total gain $ 303,925 $ 1,134,402 $ 155,563 |
Debt Facilities
Debt Facilities | 12 Months Ended |
Oct. 31, 2015 | |
Debt Disclosure [Abstract] | |
Debt Disclosure [Text Block] | DEBT FACILITIES Granite Falls Energy : GFE has a credit facility with a lender. This 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. Therefore, at October 31, 2015 , the amount the Company may borrow under this facility is $12,000,000 . The interest rate is based on the bank's One Month London Interbank Offered Rate (“ LIBOR ”) Index Rate, plus 3.05% . There was no outstanding balance on the revolving term loan on October 31, 2015 and October 31, 2014 . The credit facility requires GFE to comply with certain financial covenants. As of October 31, 2015 and 2014 , GFE was in compliance with these financial covenants and expects to be in compliance throughout fiscal 2016. The credit facility is secured by substantially all assets of the Company. At October 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. Subsequent to our fiscal year end, Norther Natural Gas waived this credit requirement and the letters of credit were cancelled and are no longer outstanding. Heron Lake BioEnergy : Revolving Term Note The Company has a revolving term loan with a lender initially totaling $28,000,000 . Under the terms of the credit facility, the revolving term loan commitment declines by $3,500,000 annually, starting March 1, 2015 and continues each anniversary thereafter until maturity. Therefore, the amount available on this facility at October 31, 2015 was $24,500,000 . Amounts borrowed by the Company under the revolving term loan and repaid or prepaid may be re-borrowed at any time prior to the March 1, 2022 maturity date. 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. The Company 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. The Company 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 the Company assets including a subsidiary guarantee. The interest rate on the revolving term loan was 3.45% and 3.41% at October 31, 2015 , and October 31, 2014 , respectively. As part of the Credit Facility closing, the Company 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. The Company agreed to pay CoBank an annual fee of $2,500 as the agent for Ag Star. Long-term debt consists of the following: October 31, 2015 October 31, 2014 GRANITE FALLS ENERGY: Revolving Term Loan $ — $ — HERON LAKE BIOENERGY: Revolving term note payable to lending institution, see terms above. 4,822,777 — 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 of approximately $364,000, which is included with other assets that are held on deposit to be applied with the final payments of the assessment. 1,775,828 2,018,767 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. 51,199 102,074 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. 136,378 172,072 Note payable to electrical company with monthly payments of $6,250 with interest at 0.00% and a 1.00% maintenance fee due each October, due September 2017. The electrical company is a member of the Company. 143,750 218,750 Note payable to non-controlling interest member of Agrinatural. Interest is at One Month LIBOR plus 4.0%. The note is considered due on demand with payments due at Agrinatural Board of Managers discretion. 300,000 300,000 Equipment payable on corn oil separation equipment from a vendor. The Company paid approximately $40,000 per month conditioned upon revenue generated from the corn oil equipment. The monthly payment included implicit interest of 5.57%. This note was paid in full in February 2015. — 146,984 Totals 7,229,932 2,958,647 Less amounts due within one year 517,957 846,235 Net long-term debt $ 6,711,975 $ 2,112,412 Estimated maturities of long-term debt at October 31, 2015 are as follows: 2016 $ 517,957 2017 480,064 2018 432,182 2019 319,376 2020 326,798 After 2020 5,153,555 Total debt $ 7,229,932 |
Members' Equity
Members' Equity | 12 Months Ended |
Oct. 31, 2015 | |
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, 2015 , 2014 and 2013 , the Company had 30,606 membership units authorized, issued, and outstanding, respectively. Subsequent to fiscal year end, in December 2015, the Board of Governors declared a cash distribution of $315 per unit or approximately $9,641,000 for unit holders of record as of December 17, 2015 was paid on January 25, 2016. In December 2014, the Board of Governors declared a cash distribution of $1,050 per unit or approximately $32,136,000 for unit holders of record as of December 18, 2014. This distribution was paid on January 9, 2015. In December 2013, the Board of Governors declared a cash distribution of $180 per unit or approximately $5,509,080 for unit holders of record as of December 19, 2013. The distribution was paid on December 31, 2013. |
Leases
Leases | 12 Months Ended |
Oct. 31, 2015 | |
Leases [Abstract] | |
Leases | LEASES GFE has lease agreements with leasing companies for 219 rail cars for the transportation of the Company’s ethanol with various maturity dates through November 2021. The rail car lease payments are due monthly in the aggregate amount of approximately $190,000 . GFE has lease agreements with leasing companies for 115 hopper cars to assist with the transport of the distiller’s grains by rail with various maturity dates through November 2025. The rail car lease payments are due monthly in the amount of approximately $76,000 . HLBE has lease agreements with leasing companies for 145 rail cars for the transportation of the Company’s ethanol with various maturity dates through May 2017. The rail car lease payments are due monthly in the aggregate amount of approximately $143,000 . HLBE has a lease agreement with a leasing company for 50 hopper cars to assist with the transport of the distiller’s grains by rail with a maturity date of May 2017. The rail car lease payments are due monthly in the amount of approximately $35,000 . At October 31, 2015, 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, 2015 to October 31, 2016 $ 5,379,490 November 1, 2016 to October 31, 2017 3,535,054 November 1, 2017 to October 31, 2018 2,026,716 November 1, 2018 to October 31, 2019 1,252,350 November 1, 2019 to October 31, 2020 1,076,400 Thereafter 3,506,100 Total minimum lease commitments $ 16,776,110 |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Oct. 31, 2015 | |
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 $57,000 , $51,000 , and $50,000 for the fiscal years ended October 31, 2015 , 2014 and 2013 , respectively. |
Income Taxes
Income Taxes | 12 Months Ended |
Oct. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Tax | INCOME TAXES The differences between the financial statement basis and tax basis of assets are based on the following: October 31, 2015 October 31, 2014 Financial statement basis of assets $ 122,011,081 $ 139,662,533 Organization & start-up costs capitalized for tax purposes, net 446,943 536,332 Tax depreciation greater than book depreciation (19,655,009 ) (22,178,280 ) Unrealized derivatives (gains) losses 1,114 (858,238 ) Capitalized inventory 30,294 13,911 Net effect of consolidation of acquired subsidiary (26,322,082 ) (14,460,706 ) Income tax basis of assets $ 76,512,341 $ 102,715,552 There were no significant differences between the consolidated financial statement basis of liabilities and the income tax basis of liabilities at October 31, 2015 and 2014. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Oct. 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 (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, 2015 , GFE had 380,000 bushels of stored corn totaling approximately $1,300,000 with FCE that is included in inventory. At October 31, 2015 , GFE had no forward corn purchase commitments. The Company purchased approximately $75,018,000 of corn from the member during fiscal 2015, of which approximately $1,486,000 is included in corn payable at October 31, 2015. The Company purchased approximately $82,955,000 of corn from the member during fiscal 2014, of which approximately $1,998,000 is included in corn payable at October 31, 2014. The Company purchased approximately $153,216,000 of corn from the member during fiscal 2013. At October 31, 2015 , HLBE had cash and basis contracts for forward corn purchase commitments for approximately 2,604,000 bushels for deliveries through October 2016. Ethanol Marketing Agreement GFE currently has an Ethanol Marketing Agreement (“Eco Agreement”) with Eco-Energy, Inc., an unrelated party (“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 except for 43 rail cars leased to GFE by Eco-Energy under the Eco Agreement. GFE will pay Eco-Energy a fixed fee per gallon of ethanol sold in consideration of Eco-Energy's services, as well as a fixed lease fee for rail cars leased from Eco-Energy to the GFE. In September 2013, the initial term of the agreement was extended to December 31, 2016 , with automatic renewals for additional three terms of three year periods unless terminated by either party by providing written notice to the other party at least 3 months prior to the end of the then current term. HLBE has a marketing agreement with Eco-Energy, an unrelated party, for the sale of ethanol. Under this ethanol agreement, Eco-Energy purchases, markets and resells 100% of the ethanol produced at the Company's ethanol production facility and arranges for the transportation of ethanol. HLBE will pay Eco-Energy a fixed marketing fee per gallon of ethanol sold, as well as a fixed lease fee for rail cars leased from Eco-Energy to the HLBE. The marketing fee was negotiated based on prevailing market-rate conditions for comparable ethanol marketing services. The term of HLBE ethanol marketing agreement continues through December 31, 2016, with automatic renewals for additional three terms of three year periods unless terminated by either party by providing written notice to the other party at least 3 months prior to the end of the then current term. Ethanol marketing fees and commissions totaled approximately $1,234,000 , $1,318,000 and $1,031,000 for the fiscal years ended October 31, 2015 , 2014 and 2013 respectively, and are included net within revenues. Ethanol Contracts At October 31, 2015 , GFE had forward contracts to sell approximately $2,389,000 of ethanol for various delivery periods from November 2015 through December 2015 which approximates 15% of its anticipated ethanol sales during that period. At October 31, 2015 , HLBE had forward contracts to sell approximately $2,366,000 of ethanol for various delivery periods from November 2015 through December 2015 which approximates 15% of its anticipated ethanol sales during that period. Distillers Grain Marketing Agreement GFE has a Marketing Agreement with RPMG, Inc., 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 $421,000 , $518,000 and $745,000 for the fiscal years ended October 31, 2015 , 2014 and 2013 respectively, and are included net within revenues. At October 31, 2015 , GFE had forward contracts to sell approximately $1,923,000 of distillers grain for deliveries in November 2015 through January 2016 which approximates 45% of its anticipated distillers grain sales during that period. Gavilon Ingredients, LLC ("Gavilon") 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 purchases all of the distillers' grains produced at our Heron Lake ethanol plant in exchange for a service fee. The contract commenced on November 1, 2013 with an initial term of six months, and will continue to remain in effect until terminated by either party at its unqualified option, by providing written notice of not less than 60 days to the other party. At October 31, 2015 , HLBE had forward contracts to sell approximately $151,000 of distillers' grains for delivery in October 2015. 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. HLBE 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 November 1, 2013 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 $125,000 , $112,000 and $74,000 for the fiscal years ended October 31, 2015 , 2014 and 2013 respectively, and are included net within revenues. At October 31, 2015 , GFE had forward contracts to sell approximately $220,000 of corn oil for delivery through November 2015. At October 31, 2015 , HLBE had forward contracts to sell approximately $383,000 of corn oil for delivery through November 2015. Natural Gas Contracts At October 31, 2015 , GFE had forward basis contracts to buy natural gas for deliveries in November 2015 through March 2016 which approximates 75% of its anticipated natural gas purchases during that period. At October 31, 2015 , HLBE had no forward contracts to buy natural gas. Contract for Natural Gas Pipeline to Plant HLBE has 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 was formed to own and operate the pipeline and transports gas to the Company pursuant to a transportation agreement The Company also has a base agreement for the sale and purchase of natural gas with Constellation NewEnergy-Gas Division, LLC ("Constellation"). HLBE has a base agreement for the sale and purchase of natural gas with Constellation NewEnergy-Gas Division, LLC pursuant to which it buys all of its natural gas from Constellation. This agreement runs until March 31, 2016. 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. |
Legal Proceedings
Legal Proceedings | 12 Months Ended |
Oct. 31, 2015 | |
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, 2015 | |
Quarterly Financial Data (Unaudited) [Abstract] | |
Quarterly Financial Data (Unaudited) | QUARTERLY FINANCIAL DATA (UNAUDITED) Summary quarterly results are as follows: First Second Third Fourth Fiscal year ended October 31, 2015 Revenues $ 58,692,502 $ 59,067,109 $ 58,671,723 $ 54,823,174 Gross profit 5,628,105 5,545,088 8,795,890 2,631,235 Operating income 4,204,718 4,173,843 7,494,444 1,551,398 Net income attributable to GFE 3,767,092 3,179,639 5,440,763 1,199,256 Basic and diluted earnings per unit attributable to GFE $ 123.08 $ 103.89 177.77 $ 39.18 First Second Third Fourth Fiscal year ended October 31, 2014 Revenues $ 77,463,813 $ 81,324,024 $ 78,383,846 $ 63,783,301 Gross profit 14,420,458 18,212,259 16,043,874 14,844,764 Operating income 13,124,957 16,832,384 14,833,232 13,580,276 Net income attributable to GFE 10,554,947 14,249,413 13,018,046 10,951,485 Basic and diluted earnings per unit attributable to GFE $ 344.87 $ 465.58 $ 425.34 $ 357.82 First Second Third Fourth 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 6,311,018 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 4,604,950 Basic and diluted earnings per unit attributable to GFE $ 7.23 $ 99.06 $ 71.02 $ 159.31 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 Accoun23
Summary of Significant Accounting Policies Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Oct. 31, 2015 | |
Accounting Policies [Abstract] | |
Nature of Business [Policy 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 60 million gallons, but is currently permitted to produce up to 72.3 million gallons per year of undenatured ethanol on a twelve month rolling sum basis. Additionally, HLBE, through a majority owned subsidiary, operates a natural gas pipeline that provides natural gas to the HLBE’s ethanol production facility and other customers. |
Consolidation, Subsidiaries or Other Investments, Consolidated Entities, Policy [Policy Text Block] | Principles of Consolidation The accompanying consolidated financial statements consolidate the operating results and financial position of GFE, and its approximately 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 financial statements of HLBE with its consolidated financial statements. The remaining approximately 49.4% ownership of HLBE is included in the 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% non-controlling interest. All intercompany balances and transactions are eliminated in consolidation. The acquisition occurred on July 31, 2013 and therefore the 2013 consolidated statements of operations only include the three month period ended October 31, 2013 of HLBE. See Note 3 for details of acquisition. |
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 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 and inventory, 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 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. |
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 is periodically required to maintain at its broker cash balances related to open commodity derivative instrument positions as discussed in Note 7. |
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, 2015 or 2014. 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 net realizable value in accordance with the Financial Accounting Standards Board (FASB) Accounting Standards Update (ASU) No. 2015-11 issued in July 2015. See " Recently Issued Accounting Pronouncements, Inventory Measurement (Adopted) " below for additional information regarding ASU No. 2015-11. Cost for all inventories is determined using the first in first out method (FIFO). Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. Inventory consists of raw materials, work in process, finished goods, and supplies. 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 and Equipment Property 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 Railroad improvements 5-20 years Process equipment and tanks 5-15 years Administration building 10-30 years Office equipment 5-10 years Rolling stock 5-15 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. |
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 2015 , 2014 , or 2013 that would have triggered impairment testing, and therefore, no impairment expense was recorded during fiscal 2015 , 2014 or 2013. |
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. Agrinatural recognizes revenue when persuasive evidence of an arrangement exists, delivery has occurred or services have been rendered, the fee for the arrangement is fixed or determinable and collectability is reasonably assured |
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 include: 1. Quoted prices in active markets for similar assets or liabilities. 2. Quoted prices in markets that are observable for the asset or liability either directly or indirectly, for substantially the full term of the asset or liability. 3. Inputs that derived primarily from or corroborated by observable market date by correlation or other means. • 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, 2015 , 2014 or 2013 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 normal sales are documented as normal and exempted from accounting and reporting requirements, and therefore, are not marked to market in our 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 7. |
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, 2015 or 2014 that would require disclosure. For years before 2012, the Company is no longer subject to United States 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, 2015 , 2014 , or 2013 . |
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. No indicators of impairment existed during fiscal 2015, 2014 or 2013 that would have triggered impairment testing, and therefore, no impairment expense was recorded during 2015, 2014 or 2013. |
New Accounting Pronouncements, Policy [Policy Text Block] | Inventory Measurement (Adopted) In July 2015, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2015-11, which amended Inventory (Topic 330) Related to Simplifying the Measurement of Inventory of the Accounting Standards Codification. The amended guidance applies to all inventory except that which is measured using last-in, first-out (LIFO) or the retail inventory method. Inventory measured using first-in, first-out (FIFO) or average cost is included in the new amendments. Inventory within the scope of the new guidance should be measured at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. Subsequent measurement is unchanged for inventory measured using LIFO or the retail inventory method. The amendments will take effect for the Company for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. The new guidance should be applied prospectively, and earlier application is permitted as of the beginning of an interim or annual reporting period. The Company has elected to adopt the standard as of November 1, 2014, and it did not have a material effect on the financial statements. Contract Revenue Recognition (Evaluating) In May 2014 and amended in August 2015, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2014-09 which amended the Revenue from Contracts with Customers (Topic 606) of the Accounting Standards Codification. The core principle of the new guidance is that an entity should recognize revenue to reflect the transfer of goods and services to customers in an amount equal to the consideration the entity receives or expects to receive. The guidance will be effective for the Company for annual periods beginning after December 15, 2017, including interim periods within those fiscal years. The Company is still evaluating the guidance and its effect on its financial statements. |
Summary of Significant Accoun24
Summary of Significant Accounting Policies Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Oct. 31, 2015 | |
Accounting Policies [Abstract] | |
Property, Plant and Equipment [Table Text Block] | Property 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 Railroad improvements 5-20 years Process equipment and tanks 5-15 years Administration building 10-30 years Office equipment 5-10 years Rolling stock 5-15 years A summary of property and equipment: October 31, 2015 October 31, 2014 Land and improvements $ 13,348,732 $ 12,307,063 Railroad improvements 8,005,523 8,005,523 Process equipment and tanks 123,405,024 113,602,431 Administration building 907,652 1,015,361 Office equipment 569,328 265,792 Rolling stock 1,777,863 1,834,026 Construction in progress 2,013,765 7,109,796 150,027,887 144,139,992 Less: accumulated depreciation 65,723,725 56,111,647 Net property and equipment $ 84,304,162 $ 88,028,345 |
Business Combination (Tables)
Business Combination (Tables) | 12 Months Ended |
Oct. 31, 2015 | |
Business Combinations [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 and liabilities measured at fair value on a recurring basis at October 31, 2015 : Carrying Amount in Balance Sheet October 31, 2015 Fair Value October 31, 2015 Fair Value Measurement Using Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant unobservable inputs (Level 3) Financial Asset: Commodity Derivative Instruments $ 677,149 $ 677,149 $ 677,149 $ — $ — Financial Liabilities Commodity Derivative Instruments $ 1,114 $ 1,114 $ 1,114 $ — $ — The following table provides information on those derivative assets measured at fair value on a recurring basis at October 31, 2014 : Carrying Amount in Balance Sheet October 31, 2014 Fair Value October 31, 2014 Fair Value Measurement Using Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant unobservable inputs (Level 3) Financial Asset: Commodity Derivative Instruments $ 1,295,738 $ 1,295,738 $ 1,295,738 $ — $ — |
Schedule of Business Acquisitions, by Acquisition [Table Text Block] | 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 |
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 period: For the year ended October 31, 2013 Unaudited Revenues $ 349,304,556 Net income, including portion attributable to non-controlling interest of $712,289 $ 4,864,820 Net income per unit 30,614 weighted average units outstanding - basic and diluted $ 116.16 |
Fair Value FMV (Tables)
Fair Value FMV (Tables) | 12 Months Ended |
Oct. 31, 2015 | |
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 and liabilities measured at fair value on a recurring basis at October 31, 2015 : Carrying Amount in Balance Sheet October 31, 2015 Fair Value October 31, 2015 Fair Value Measurement Using Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant unobservable inputs (Level 3) Financial Asset: Commodity Derivative Instruments $ 677,149 $ 677,149 $ 677,149 $ — $ — Financial Liabilities Commodity Derivative Instruments $ 1,114 $ 1,114 $ 1,114 $ — $ — The following table provides information on those derivative assets measured at fair value on a recurring basis at October 31, 2014 : Carrying Amount in Balance Sheet October 31, 2014 Fair Value October 31, 2014 Fair Value Measurement Using Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant unobservable inputs (Level 3) Financial Asset: Commodity Derivative Instruments $ 1,295,738 $ 1,295,738 $ 1,295,738 $ — $ — |
Inventory by Process (Tables)
Inventory by Process (Tables) | 12 Months Ended |
Oct. 31, 2015 | |
Inventory in Process [Abstract] | |
Schedule of Inventory, Current [Table Text Block] | Inventory consists of the following: October 31, 2015 October 31, 2014 Raw materials $ 4,504,388 $ 4,867,269 Supplies 2,631,452 2,449,995 Work in process 1,445,084 1,459,253 Finished goods 3,631,101 1,948,627 Totals $ 12,212,025 $ 10,725,144 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 12 Months Ended |
Oct. 31, 2015 | |
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, 2015 , none of which were designated as hedging instruments: Balance Sheet location Assets Liabilities Corn contracts - GFE Commodity derivative instruments $ — $ 1,114 Corn contracts - HLBE Commodity derivative instruments 677,149 — Totals $ 677,149 $ 1,114 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 $ — |
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance [Table Text Block] | The following tables provide details regarding the gains 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 2015 2014 2013 Corn contracts Cost of Goods Sold $ 303,925 $ 1,134,402 $ 155,563 Total gain $ 303,925 $ 1,134,402 $ 155,563 |
Debt Facilities Long Term Debt
Debt Facilities Long Term Debt (Tables) | 12 Months Ended |
Oct. 31, 2015 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments [Table Text Block] | Long-term debt consists of the following: October 31, 2015 October 31, 2014 GRANITE FALLS ENERGY: Revolving Term Loan $ — $ — HERON LAKE BIOENERGY: Revolving term note payable to lending institution, see terms above. 4,822,777 — 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 of approximately $364,000, which is included with other assets that are held on deposit to be applied with the final payments of the assessment. 1,775,828 2,018,767 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. 51,199 102,074 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. 136,378 172,072 Note payable to electrical company with monthly payments of $6,250 with interest at 0.00% and a 1.00% maintenance fee due each October, due September 2017. The electrical company is a member of the Company. 143,750 218,750 Note payable to non-controlling interest member of Agrinatural. Interest is at One Month LIBOR plus 4.0%. The note is considered due on demand with payments due at Agrinatural Board of Managers discretion. 300,000 300,000 Equipment payable on corn oil separation equipment from a vendor. The Company paid approximately $40,000 per month conditioned upon revenue generated from the corn oil equipment. The monthly payment included implicit interest of 5.57%. This note was paid in full in February 2015. — 146,984 Totals 7,229,932 2,958,647 Less amounts due within one year 517,957 846,235 Net long-term debt $ 6,711,975 $ 2,112,412 |
Schedule of Maturities of Long-term Debt [Table Text Block] | Estimated maturities of long-term debt at October 31, 2015 are as follows: 2016 $ 517,957 2017 480,064 2018 432,182 2019 319,376 2020 326,798 After 2020 5,153,555 Total debt $ 7,229,932 |
Leases Leases (Tables)
Leases Leases (Tables) | 12 Months Ended |
Oct. 31, 2015 | |
Leases [Abstract] | |
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | At October 31, 2015, 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, 2015 to October 31, 2016 $ 5,379,490 November 1, 2016 to October 31, 2017 3,535,054 November 1, 2017 to October 31, 2018 2,026,716 November 1, 2018 to October 31, 2019 1,252,350 November 1, 2019 to October 31, 2020 1,076,400 Thereafter 3,506,100 Total minimum lease commitments $ 16,776,110 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Oct. 31, 2015 | |
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, 2015 October 31, 2014 Financial statement basis of assets $ 122,011,081 $ 139,662,533 Organization & start-up costs capitalized for tax purposes, net 446,943 536,332 Tax depreciation greater than book depreciation (19,655,009 ) (22,178,280 ) Unrealized derivatives (gains) losses 1,114 (858,238 ) Capitalized inventory 30,294 13,911 Net effect of consolidation of acquired subsidiary (26,322,082 ) (14,460,706 ) Income tax basis of assets $ 76,512,341 $ 102,715,552 |
Quarterly Financial Data (Una32
Quarterly Financial Data (Unaudited) Quarterly Financials (Tables) | 12 Months Ended |
Oct. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information [Table Text Block] | Summary quarterly results are as follows: First Second Third Fourth Fiscal year ended October 31, 2015 Revenues $ 58,692,502 $ 59,067,109 $ 58,671,723 $ 54,823,174 Gross profit 5,628,105 5,545,088 8,795,890 2,631,235 Operating income 4,204,718 4,173,843 7,494,444 1,551,398 Net income attributable to GFE 3,767,092 3,179,639 5,440,763 1,199,256 Basic and diluted earnings per unit attributable to GFE $ 123.08 $ 103.89 177.77 $ 39.18 First Second Third Fourth Fiscal year ended October 31, 2014 Revenues $ 77,463,813 $ 81,324,024 $ 78,383,846 $ 63,783,301 Gross profit 14,420,458 18,212,259 16,043,874 14,844,764 Operating income 13,124,957 16,832,384 14,833,232 13,580,276 Net income attributable to GFE 10,554,947 14,249,413 13,018,046 10,951,485 Basic and diluted earnings per unit attributable to GFE $ 344.87 $ 465.58 $ 425.34 $ 357.82 First Second Third Fourth 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 6,311,018 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 4,604,950 Basic and diluted earnings per unit attributable to GFE $ 7.23 $ 99.06 $ 71.02 $ 159.31 |
Summary of Significant Accoun33
Summary of Significant Accounting Policies P,P, & E Useful Life (Details) - USD ($) | 12 Months Ended | ||
Oct. 31, 2015 | Oct. 31, 2014 | Oct. 31, 2013 | |
Property, Plant and Equipment [Line Items] | |||
Depreciation | $ 9,612,000 | $ 9,209,000 | $ 5,937,000 |
Allowance for Doubtful Accounts Receivable | 0 | 0 | |
Asset Impairment Charges | $ 0 | $ 0 | $ 0 |
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 Accoun34
Summary of Significant Accounting Policies Narrative (Details) gal in Millions | 12 Months Ended |
Oct. 31, 2015gal | |
Heron Lake Bioenergy [Member] | |
Equity Method Investment, Ownership Percentage | 50.60% |
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 49.40% |
Plant production capacity | 60 |
Heron Lake Bioenergy [Member] | Maximum [Member] | |
Plant production capacity | 72.3 |
Agrinatural, LLC [Member] | |
Equity Method Investment, Ownership Percentage | 73.00% |
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 27.00% |
Granite Falls Energy [Member] | |
Plant production capacity | 60 |
Production (Actual) | 70 |
Measurement, Rolling Twelve Months | twelve |
Risks and Uncertainties Narrati
Risks and Uncertainties Narrative (Details) | 12 Months Ended |
Oct. 31, 2015 | |
Concentration Risk [Line Items] | |
Sales Revenue, Goods, Net, Percentage | 100.00% |
Minimum [Member] | |
Concentration Risk [Line Items] | |
Sales Revenue, Goods, Net, Percentage | 75.00% |
Minimum [Member] | Corn Contracts [Member] | |
Concentration Risk [Line Items] | |
Percent of Cost of Goods Sold | 65.00% |
Maximum [Member] | |
Concentration Risk [Line Items] | |
Sales Revenue, Goods, Net, Percentage | 85.00% |
Percent of Cost of Goods Sold | 85.00% |
Business Combination (Details)
Business Combination (Details) $ / shares in Units, gal in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||||||
Oct. 31, 2015USD ($)$ / sharesshares | Jul. 31, 2015$ / shares | Apr. 30, 2015$ / shares | Jan. 31, 2015$ / shares | Oct. 31, 2014USD ($)$ / sharesshares | Jul. 31, 2014$ / shares | Apr. 30, 2014$ / shares | Jan. 31, 2014$ / shares | Oct. 31, 2013USD ($)$ / sharesshares | Apr. 30, 2013$ / shares | Jan. 31, 2013$ / shares | Jul. 31, 2013USD ($)$ / shares | Oct. 31, 2015USD ($)governor$ / sharessharesgal | Oct. 31, 2014USD ($)$ / sharesshares | Oct. 31, 2013USD ($)$ / sharesshares | Oct. 31, 2012USD ($) | |
Business Acquisition [Line Items] | ||||||||||||||||
Net Income (Loss) Attributable to Noncontrolling Interest | $ 3,360,083 | $ 10,316,612 | $ 526,752 | |||||||||||||
Business Acquisition, Pro Forma Revenue | 349,304,556 | |||||||||||||||
Cash Acquired from Acquisition | $ 12,696,536 | $ 27,209,010 | $ 1,158,774 | 12,696,536 | $ 27,209,010 | $ 1,158,774 | $ 685,828 | |||||||||
Business Acquisition, Cost of Acquired Entity, Cash Paid | 8,000,000 | |||||||||||||||
Equity Method Investment, Ownership Percentage | 12.82% | |||||||||||||||
Business Acquisition, Cost of Acquired Entity, Purchase Price | $ 17,024,500 | $ 17,024,500 | ||||||||||||||
Membership Units, Issued | shares | 30,606 | 30,606 | 30,656 | 30,606 | 30,606 | 30,656 | ||||||||||
Business Acquisition, Purchase Price Allocation, Notes Payable and Long-term Debt | $ 4,024,500 | $ 4,024,500 | ||||||||||||||
Business Acquisition, Cost of Acquired Entity, Liabilities Incurred | 5,000,000 | |||||||||||||||
Restricted Cash and Cash Equivalents | 0 | $ 492,099 | 0 | $ 492,099 | ||||||||||||
Inventory, Net | 12,212,025 | 10,725,144 | 12,212,025 | 10,725,144 | ||||||||||||
Property, Plant and Equipment, Net | 84,304,162 | 88,028,345 | 84,304,162 | 88,028,345 | ||||||||||||
Goodwill | 1,372,473 | 1,372,473 | 1,372,473 | 1,372,473 | ||||||||||||
Total Assets | 122,011,081 | 139,662,533 | 122,011,081 | 139,662,533 | ||||||||||||
Accounts Payable, Current | 4,643,130 | 8,086,119 | 4,643,130 | 8,086,119 | ||||||||||||
Accrued Liabilities, Current | 654,550 | 649,994 | 654,550 | 649,994 | ||||||||||||
Stockholders' Equity Attributable to Noncontrolling Interest | $ 21,556,819 | $ 22,818,076 | $ 21,556,819 | $ 22,818,076 | ||||||||||||
Business Acquisition, Pro Forma Net Income (Loss) | $ 4,864,820 | |||||||||||||||
Earnings Per Share, Basic and Diluted | $ / shares | $ 39.18 | $ 177.77 | $ 103.89 | $ 123.08 | $ 357.82 | $ 425.34 | $ 465.58 | $ 344.87 | $ 159.31 | $ 99.06 | $ 7.23 | $ 71.02 | $ 443.92 | $ 1,593.61 | $ 327.78 | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net | $ 17,024,500 | |||||||||||||||
Project Viking, LLC [Member] | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Equity Method Investment, Ownership Percentage | 100.00% | |||||||||||||||
Heron Lake Bioenergy [Member] | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Net Income (Loss) Attributable to Noncontrolling Interest | $ 527,000 | |||||||||||||||
Debt Instrument, Fair Value Disclosure | $ 36,500,000 | 36,500,000 | ||||||||||||||
Debt premium | 2,300,000 | 2,300,000 | ||||||||||||||
Cash Acquired from Acquisition | $ 1,022,764 | $ 1,022,764 | ||||||||||||||
Equity Method Investment, Ownership Percentage | 63.30% | 63.30% | ||||||||||||||
Plant production capacity | gal | 50 | |||||||||||||||
Membership Units, Acquired | shares | 39,080,949 | |||||||||||||||
Membership Units, Issued | shares | 61,697,104 | 61,697,104 | ||||||||||||||
Board of Governors, Seats Appointed | governor | 5 | |||||||||||||||
Board of Governors, Total Seats | governor | 9 | |||||||||||||||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 36.66% | 36.66% | ||||||||||||||
Restricted Cash and Cash Equivalents | $ 510,955 | $ 510,955 | ||||||||||||||
Accounts Receivable, Net, Current | 3,107,121 | 3,107,121 | ||||||||||||||
Inventory, Net | 2,303,157 | 2,303,157 | ||||||||||||||
Prepaid Expense, Current | 1,107,025 | 1,107,025 | ||||||||||||||
Property, Plant and Equipment, Net | 51,625,774 | 51,625,774 | ||||||||||||||
Other Assets, Noncurrent | 924,252 | 924,252 | ||||||||||||||
Goodwill | 1,372,473 | 1,372,473 | ||||||||||||||
Total Assets | 61,973,521 | 61,973,521 | ||||||||||||||
Accounts Payable, Current | (936,893) | (936,893) | ||||||||||||||
Accrued Liabilities, Current | (399,623) | (399,623) | ||||||||||||||
Notes Payable | (36,452,764) | (36,452,764) | ||||||||||||||
Stockholders' Equity Attributable to Noncontrolling Interest | (7,159,741) | (7,159,741) | ||||||||||||||
Business Acquisition, Pro Forma Net Income (Loss) | $ 712,289 | $ (20,702,684) | $ 361,351 | |||||||||||||
Earnings Per Share, Basic and Diluted | $ / shares | $ 116.16 | |||||||||||||||
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 | shares | 30,606 | 30,614 | 30,656 | |||||||||||||
Weighted Average Number of Shares Outstanding, Diluted | shares | 30,606 | 30,614 | 30,656 | |||||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net | $ 17,024,500 | $ 17,024,500 | ||||||||||||||
Capital Unit, Class A [Member] | Heron Lake Bioenergy [Member] | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Membership Units, Acquired | shares | 24,080,949 | |||||||||||||||
Capital Unit, Class B [Member] | Heron Lake Bioenergy [Member] | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Membership Units, Acquired | shares | 15,000,000 |
Fair Value Derivative Instrumen
Fair Value Derivative Instrument (Details) - USD ($) | Oct. 31, 2015 | Oct. 31, 2014 |
Derivative [Line Items] | ||
Derivative Asset | $ 677,149 | |
Derivative Liabilities | 1,114 | $ 1,295,738 |
Fair Value, Inputs, Level 1 [Member] | ||
Derivative [Line Items] | ||
Derivative Asset | 677,149 | |
Derivative Liabilities | 1,114 | 1,295,738 |
Fair Value, Inputs, Level 2 [Member] | ||
Derivative [Line Items] | ||
Derivative Asset | 0 | |
Derivative Liabilities | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | ||
Derivative [Line Items] | ||
Derivative Asset | 0 | |
Derivative Liabilities | 0 | 0 |
Carrying (Reported) Amount, Fair Value Disclosure [Member] | ||
Derivative [Line Items] | ||
Derivative Asset | 677,149 | |
Derivative Liabilities | $ 1,114 | $ 1,295,738 |
Concentrations Narrative (Detai
Concentrations Narrative (Details) | 12 Months Ended | ||
Oct. 31, 2015 | Oct. 31, 2014 | Oct. 31, 2013 | |
Revenue, Major Customer [Line Items] | |||
Entity-Wide Revenue, Major Customer, Percentage | 100.00% | ||
Granite Falls Energy [Member] | |||
Revenue, Major Customer [Line Items] | |||
Entity-Wide Revenue, Major Customer, Percentage | 99.00% | 99.00% | 100.00% |
Entity-Wide Accounts Receivable, Major Customer, Percentage | 89.00% | 93.00% | |
Heron Lake Bio-energy LLC [Member] | |||
Revenue, Major Customer [Line Items] | |||
Entity-Wide Revenue, Major Customer, Percentage | 97.00% | 96.00% | 97.00% |
Entity-Wide Accounts Receivable, Major Customer, Percentage | 97.00% | 88.00% |
Inventory Inventory (Details)
Inventory Inventory (Details) - USD ($) | Oct. 31, 2015 | Oct. 31, 2014 | Oct. 31, 2013 |
Inventory Adjustments | $ 0 | $ 0 | $ 0 |
Inventory, Net | 12,212,025 | 10,725,144 | |
Raw Materials [Member] | |||
Inventory, Net | 4,504,388 | 4,867,269 | |
Replacement Parts [Member] | |||
Inventory, Net | 2,631,452 | 2,449,995 | |
Work In Process [Member] | |||
Inventory, Net | 1,445,084 | 1,459,253 | |
Finished Goods [Member] | |||
Inventory, Net | $ 3,631,101 | $ 1,948,627 |
Derivative Instruments Narrativ
Derivative Instruments Narrative (Details) | Oct. 31, 2015bu | Oct. 31, 2014USD ($)bu |
Margin requirements [Member] | ||
Derivative [Line Items] | ||
Restricted Cash and Cash Equivalents, Current | $ | $ 492,000 | |
Corn Contracts [Member] | ||
Derivative [Line Items] | ||
Outstanding corn derivative instrument | bu | 2,615,000 | 7,135,000 |
Granite Falls Energy [Member] | Margin requirements [Member] | ||
Derivative [Line Items] | ||
Restricted Cash and Cash Equivalents, Current | $ | $ 228,000 | |
Granite Falls Energy [Member] | Corn Contracts [Member] | ||
Derivative [Line Items] | ||
Outstanding corn derivative instrument | bu | 740,000 | 4,345,000 |
Heron Lake Bio-energy LLC [Member] | Margin requirements [Member] | ||
Derivative [Line Items] | ||
Restricted Cash and Cash Equivalents, Current | $ | $ 264,000 | |
Heron Lake Bio-energy LLC [Member] | Corn Contracts [Member] | ||
Derivative [Line Items] | ||
Outstanding corn derivative instrument | bu | 1,875,000 | 2,790,000 |
Derivative Instrument Asset & L
Derivative Instrument Asset & Liabilities (Details) - USD ($) | Oct. 31, 2015 | Oct. 31, 2014 |
Derivatives, Fair Value [Line Items] | ||
Derivative Assets, Current | $ 677,149 | $ 1,295,738 |
Derivative Liabilities, Current | (1,114) | 0 |
Granite Falls Energy [Member] | Corn Contracts [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets, Current | 0 | 858,238 |
Derivative Liabilities, Current | (1,114) | 0 |
Heron Lake Bio-energy LLC [Member] | Corn Contracts [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets, Current | 677,149 | 437,500 |
Derivative Liabilities, Current | $ 0 | 0 |
Margin requirements [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Restricted Cash and Cash Equivalents, Current | 492,000 | |
Margin requirements [Member] | Granite Falls Energy [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Restricted Cash and Cash Equivalents, Current | 228,000 | |
Margin requirements [Member] | Heron Lake Bio-energy LLC [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Restricted Cash and Cash Equivalents, Current | $ 264,000 |
Derivative Instrument, Income S
Derivative Instrument, Income Statement (Details) - USD ($) | 12 Months Ended | ||
Oct. 31, 2015 | Oct. 31, 2014 | Oct. 31, 2013 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative Instruments, Gain (Loss) Recognized in Income, Net | $ 303,925 | $ 1,134,402 | $ 155,563 |
Corn Contracts [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative cost of goods | $ 303,925 | $ 1,134,402 | $ 155,563 |
Property and Equipment (Details
Property and Equipment (Details) | 12 Months Ended | ||
Oct. 31, 2015USD ($)bu | Oct. 31, 2014USD ($) | Oct. 31, 2013USD ($) | |
Property, Plant and Equipment [Abstract] | |||
Property, Plant and Equipment [Table Text Block] | Property 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 Railroad improvements 5-20 years Process equipment and tanks 5-15 years Administration building 10-30 years Office equipment 5-10 years Rolling stock 5-15 years A summary of property and equipment: October 31, 2015 October 31, 2014 Land and improvements $ 13,348,732 $ 12,307,063 Railroad improvements 8,005,523 8,005,523 Process equipment and tanks 123,405,024 113,602,431 Administration building 907,652 1,015,361 Office equipment 569,328 265,792 Rolling stock 1,777,863 1,834,026 Construction in progress 2,013,765 7,109,796 150,027,887 144,139,992 Less: accumulated depreciation 65,723,725 56,111,647 Net property and equipment $ 84,304,162 $ 88,028,345 | ||
Property, Plant and Equipment Disclosure [Text Block] | PROPERTY AND EQUIPMENT A summary of property and equipment: October 31, 2015 October 31, 2014 Land and improvements $ 13,348,732 $ 12,307,063 Railroad improvements 8,005,523 8,005,523 Process equipment and tanks 123,405,024 113,602,431 Administration building 907,652 1,015,361 Office equipment 569,328 265,792 Rolling stock 1,777,863 1,834,026 Construction in progress 2,013,765 7,109,796 150,027,887 144,139,992 Less: accumulated depreciation 65,723,725 56,111,647 Net property and equipment $ 84,304,162 $ 88,028,345 Depreciation expense totaled approximately $9,612,000 , $9,209,000 , and $5,937,000 for the fiscal years ended October 31, 2015 , 2014 , and 2013 , respectively. Construction in Progress On April 8, 2015, GFE executed a construction agreement with an unrelated contractor to construct an additional 750,000 bushel grain storage bin. The grain storage expansion project is expected to cost approximately $2.7 million and is expected to be completed during the first half of our 2016 fiscal year. On July 31, 2015, HLBE placed a purchase order with an unrelated party for a new regenerative thermal oxidizer and made a down payment of approximately $375,000 to secure the order. The total commitment approximates $1.9 million and is expected to be completed during the latter part of fiscal year 2016. | ||
Property, Plant and Equipment [Line Items] | |||
Depreciation | $ 9,612,000 | $ 9,209,000 | $ 5,937,000 |
Land and Land Improvements | 13,348,732 | 12,307,063 | |
Railroad Improvements | 8,005,523 | 8,005,523 | |
Machinery and Equipment, Gross | 123,405,024 | 113,602,431 | |
Furniture and Fixtures, Gross | 569,328 | 265,792 | |
Vehicles | 1,777,863 | 1,834,026 | |
Administration building | 907,652 | 1,015,361 | |
Construction in Progress, Gross | 2,013,765 | 7,109,796 | |
Property, Plant and Equipment, Gross | 150,027,887 | 144,139,992 | |
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | 65,723,725 | 56,111,647 | |
Property, Plant and Equipment, Net | $ 84,304,162 | $ 88,028,345 | |
Grain Storage [Member] | Granite Falls Energy, LLC [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Construction in Process, Bushels | bu | 750,000 | ||
Construction in Progress, Gross | $ 2,700,000 | ||
Regenerative Thermal Oxidizer [Member] | Heron Lake BioEnergy, LLC [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Construction in Progress, Gross | 1,900,000 | ||
Payments for Construction in Process | $ 375,000 |
Debt Facilities Narrative (Deta
Debt Facilities Narrative (Details) - USD ($) | 12 Months Ended | |
Oct. 31, 2015 | Oct. 31, 2014 | |
Line of Credit Facility [Line Items] | ||
Long-term Debt | $ 7,229,932 | $ 2,958,647 |
Debt Instrument, Unused Borrowing Capacity, Amount | 12,000,000 | |
Heron Lake Bioenergy [Member] | Revolving Operating Loan [Member] | ||
Line of Credit Facility [Line Items] | ||
Line of Credit Facility, Amount Outstanding | 0 | |
Heron Lake Bioenergy [Member] | Revolving Term Loan [Member] | ||
Line of Credit Facility [Line Items] | ||
Long-term Debt | 28,000,000 | |
Letters of Credit Reduction, Amount | 3,500,000 | |
Debt Instrument, Unused Borrowing Capacity, Amount | 24,500,000 | |
Debt Instrument, Fee Amount | 2,500 | |
Agrinatural, LLC [Member] | ||
Line of Credit Facility [Line Items] | ||
Line of Credit Facility, Amount Outstanding | 300,000 | 300,000 |
Agrinatural, LLC [Member] | Natural Gas Pipeline Construction Loan [Member] | ||
Line of Credit Facility [Line Items] | ||
Line of Credit Facility, Amount Outstanding | 4,822,777 | |
Granite Falls Energy [Member] | ||
Line of Credit Facility [Line Items] | ||
Line of Credit Facility, Amount Outstanding | 0 | |
Letters of Credit Outstanding, Amount | 289,000 | |
Granite Falls Energy [Member] | Revolving Term Loan [Member] | ||
Line of Credit Facility [Line Items] | ||
Long-term Debt | 18,000,000 | |
Letters of Credit Reduction, Amount | 2,000,000 | |
Line of Credit Facility, Amount Outstanding | $ 0 | $ 0 |
Minimum [Member] | Heron Lake Bioenergy [Member] | ||
Line of Credit Facility [Line Items] | ||
Line of Credit Facility, Interest Rate Description | LIBOR | |
Debt Instrument, Interest Rate, Stated Percentage | 3.45% | 3.41% |
Line of Credit Facility, Commitment Fee Percentage | 0.50% | |
Minimum [Member] | Granite Falls Energy [Member] | ||
Line of Credit Facility [Line Items] | ||
Line of Credit Facility, Interest Rate Description | LIBOR | |
Maximum [Member] | Heron Lake Bioenergy [Member] | ||
Line of Credit Facility [Line Items] | ||
Line of Credit Facility, Interest Rate Description | 0.0325 | |
Maximum [Member] | Granite Falls Energy [Member] | ||
Line of Credit Facility [Line Items] | ||
Line of Credit Facility, Interest Rate Description | 0.0305 |
Debt Facilities Long Term Deb45
Debt Facilities Long Term Debt (Details) - USD ($) | 12 Months Ended | |
Oct. 31, 2015 | Oct. 31, 2014 | |
Debt Instrument [Line Items] | ||
Long-term Debt | $ 7,229,932 | $ 2,958,647 |
Long-term Debt, Current Maturities | (517,957) | |
Long-term Debt, Maturities, Repayments of Principal in Year Two | 480,064 | |
Long-term Debt, Maturities, Repayments of Principal in Year Three | 432,182 | |
Long-term Debt, Maturities, Repayments of Principal in Year Four | 319,376 | |
Long-term Debt, Maturities, Repayments of Principal in Year Five | 326,798 | |
Long-term Debt, Maturities, Repayments of Principal after Year Five | 5,153,555 | |
Long-term Debt, less current portion | 6,711,975 | 2,112,412 |
Current portion long-term debt | 517,957 | 846,235 |
Granite Falls Energy [Member] | ||
Debt Instrument [Line Items] | ||
Letters of Credit Outstanding, Amount | 289,000 | |
Line of Credit Facility, Amount Outstanding | 0 | |
Granite Falls Energy [Member] | Revolving Term Loan [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt | 18,000,000 | |
Letters of Credit Reduction, Amount | 2,000,000 | |
Line of Credit Facility, Amount Outstanding | 0 | 0 |
Heron Lake Bioenergy [Member] | Corn Oil Separation [Member] | ||
Debt Instrument [Line Items] | ||
Line of Credit Facility, Amount Outstanding | $ 0 | 146,984 |
Debt Instrument, Interest Rate, Effective Percentage | 5.57% | |
Debt Instrument, Periodic Payment | $ 40,000 | |
Heron Lake Bioenergy [Member] | Revolving Operating Loan [Member] | ||
Debt Instrument [Line Items] | ||
Line of Credit Facility, Amount Outstanding | 0 | |
Heron Lake Bioenergy [Member] | Water Assessment [Member] | ||
Debt Instrument [Line Items] | ||
Debt Payments, Semi-Annual Installments | 189,393 | |
Line of Credit Facility, Amount Outstanding | $ 1,775,828 | 2,018,767 |
Debt Instrument, Interest Rate, Effective Percentage | 6.55% | |
Heron Lake Bioenergy [Member] | Revolving Term Loan [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt | $ 28,000,000 | |
Letters of Credit Reduction, Amount | 3,500,000 | |
Heron Lake Bioenergy [Member] | Water Treatment Plant [Member] | ||
Debt Instrument [Line Items] | ||
Debt Payments, Semi-Annual Installments | 25,692 | |
Line of Credit Facility, Amount Outstanding | $ 51,199 | 102,074 |
Debt Instrument, Interest Rate, Effective Percentage | 0.50% | |
Heron Lake Bioenergy [Member] | Water Supply [Member] | ||
Debt Instrument [Line Items] | ||
Line of Credit Facility, Amount Outstanding | $ 136,378 | 172,072 |
Debt Instrument, Interest Rate, Effective Percentage | 8.73% | |
Debt Instrument, Periodic Payment | $ 3,942 | |
Heron Lake Bioenergy [Member] | Electrical Company [Member] | ||
Debt Instrument [Line Items] | ||
Line of Credit Facility, Amount Outstanding | 143,750 | 218,750 |
Agrinatural, LLC [Member] | ||
Debt Instrument [Line Items] | ||
Line of Credit Facility, Amount Outstanding | 300,000 | $ 300,000 |
Agrinatural, LLC [Member] | Natural Gas Pipeline Construction Loan [Member] | ||
Debt Instrument [Line Items] | ||
Line of Credit Facility, Amount Outstanding | $ 4,822,777 |
Members' Equity Narrative (Deta
Members' Equity Narrative (Details) - USD ($) | Dec. 19, 2015 | Oct. 31, 2015 | Oct. 31, 2014 | Oct. 31, 2013 |
Equity [Abstract] | ||||
Membership Units, Issued | 30,606 | 30,606 | 30,656 | |
Membership Units, Outstanding | 30,606 | 30,606 | 30,656 | |
Distribution Made to Membership, Cash Distribution Paid per Unit | $ 315 | $ 1,050 | $ 180 | |
Distribution Made to Member or Limited Partner, Cash Distributions Paid | $ 9,641,000 | $ 32,136,000 | $ 5,509,080 |
Leases Narrative (Details)
Leases Narrative (Details) | 12 Months Ended | |
Oct. 31, 2015USD ($) | Oct. 31, 2014USD ($) | |
Operating Leases, Future Minimum Payments Due, Next Twelve Months | $ 5,379,490 | |
Operating Leases, Future Minimum Payments, Due in Two Years | 3,535,054 | |
Operating Leases, Future Minimum Payments, Due in Three Years | 2,026,716 | |
Operating Leases, Future Minimum Payments, Due in Four Years | 1,252,350 | |
Operating Leases, Future Minimum Payments, Due in Five Years | 1,076,400 | |
Operating Leases, Future Minimum Payments, Due Thereafter | 3,506,100 | |
Operating Leases, Future Minimum Payments Due | 16,776,110 | |
Derivative Liabilities | $ 1,114 | $ 1,295,738 |
Granite Falls Energy [Member] | Hopper Cars [Member] | ||
Equipment Lease, Quantity | 115 | |
Granite Falls Energy [Member] | Rail Cars [Member] | ||
Equipment Lease, Quantity | 219 | |
Granite Falls Energy [Member] | Rail Cars [Member] | ||
Operating Leases, Rent Expense | $ 190,000 | |
Granite Falls Energy [Member] | Hopper Cars [Member] | ||
Operating Leases, Rent Expense | $ 76,000 | |
Heron Lake Bioenergy [Member] | Hopper Cars [Member] | ||
Equipment Lease, Quantity | 50 | |
Heron Lake Bioenergy [Member] | Rail Cars [Member] | ||
Equipment Lease, Quantity | 145 | |
Heron Lake Bioenergy [Member] | Rail Cars [Member] | ||
Operating Leases, Rent Expense | $ 143,000 | |
Heron Lake Bioenergy [Member] | Hopper Cars [Member] | ||
Operating Leases, Rent Expense | $ 35,000 |
Employee Benefit Plans Narrativ
Employee Benefit Plans Narrative (Details) - USD ($) | 12 Months Ended | ||
Oct. 31, 2015 | Oct. 31, 2014 | Oct. 31, 2013 | |
Compensation and Retirement Disclosure [Abstract] | |||
Deferred Salary, Company Match | 50.00% | ||
Description of Defined Contribution Pension and Other Postretirement Plans | 3.00% | ||
Defined Contribution Plan, Cost Recognized | $ 57,000 | $ 51,000 | $ 50,000 |
Income Taxes Narrative (Details
Income Taxes Narrative (Details) - USD ($) | 12 Months Ended | |
Oct. 31, 2015 | Oct. 31, 2014 | |
Income Tax Disclosure [Abstract] | ||
Income Tax Reconciliation, Change in Deferred Tax Assets Valuation Allowance | $ 122,011,081 | $ 139,662,533 |
Capitalized start-up costs | 446,943 | 536,332 |
Income Tax Reconciliation, Income Tax Expense (Benefit), at Federal Statutory Income Tax Rate | (19,655,009) | (22,178,280) |
Unrealized Gain (Loss) on Derivatives | 1,114 | (858,238) |
Capitalized inventory | 30,294 | 13,911 |
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Changes, Net | (26,322,082) | (14,460,706) |
Net Income, Tax Basis of Assets | $ 76,512,341 | $ 102,715,552 |
Commitments and Contingencies N
Commitments and Contingencies Narrative (Details) | 12 Months Ended | ||
Oct. 31, 2015USD ($)MMBTUbu | Oct. 31, 2014USD ($)mi | Oct. 31, 2013USD ($) | |
Purchase Commitment, Excluding Long-term Commitment [Line Items] | |||
Selling and Marketing Expense | $ 1,234,000 | $ 1,318,000 | $ 1,031,000 |
Entity-Wide Revenue, Major Customer, Percentage | 100.00% | ||
Natural Gas [Member] | |||
Purchase Commitment, Excluding Long-term Commitment [Line Items] | |||
Future Commitment, Pipeline | mi | 9.5 | ||
Future Commitment, DT | MMBTU | 1,400,000 | ||
Corn Oil [Member] | |||
Purchase Commitment, Excluding Long-term Commitment [Line Items] | |||
Fees and Commissions | $ (125,000) | $ (112,000) | (74,000) |
Distillers Grains [Member] | |||
Purchase Commitment, Excluding Long-term Commitment [Line Items] | |||
Written Notice | P90D | ||
Contract, Initial Length | P1Y | ||
Fees and Commissions | $ (421,000) | $ (518,000) | $ (745,000) |
Granite Falls Energy [Member] | |||
Purchase Commitment, Excluding Long-term Commitment [Line Items] | |||
Entity-Wide Revenue, Major Customer, Percentage | 99.00% | 99.00% | 100.00% |
Granite Falls Energy [Member] | Natural Gas [Member] | |||
Purchase Commitment, Excluding Long-term Commitment [Line Items] | |||
future commitment, percent of anticipated usage | 75.00% | ||
Granite Falls Energy [Member] | Corn Oil [Member] | |||
Purchase Commitment, Excluding Long-term Commitment [Line Items] | |||
Future Commitment, Dollar | $ 220,000 | ||
Granite Falls Energy [Member] | Ethanol Contracts [Member] | |||
Purchase Commitment, Excluding Long-term Commitment [Line Items] | |||
Future Commitment, Dollar | $ 2,389,000 | ||
Revenue Concentration, Future Commitment | 15.00% | ||
Granite Falls Energy [Member] | Distillers Grains [Member] | |||
Purchase Commitment, Excluding Long-term Commitment [Line Items] | |||
Future Commitment, Dollar | $ 1,923,000 | ||
Revenue Concentration, Future Commitment | 45.00% | ||
Granite Falls Energy [Member] | Initial Length [Member] | Ethanol Contracts [Member] | |||
Purchase Commitment, Excluding Long-term Commitment [Line Items] | |||
Written Notice | December 31, 2016 | ||
Granite Falls Energy [Member] | Renewal Notice [Member] | Ethanol Contracts [Member] | |||
Purchase Commitment, Excluding Long-term Commitment [Line Items] | |||
Written Notice | P3M | ||
Granite Falls Energy [Member] | Corn Contracts [Member] | |||
Purchase Commitment, Excluding Long-term Commitment [Line Items] | |||
forward contracts | $ 0 | ||
Accounts Payable | 1,486,000 | $ 1,998,000 | |
Purchases For Inventory | $ 75,018,000 | $ 82,955,000 | $ 153,216,000 |
Granite Falls Energy [Member] | Corn Oil [Member] | |||
Purchase Commitment, Excluding Long-term Commitment [Line Items] | |||
Written Notice | P90D | ||
Contract, Initial Length | P1Y | ||
Heron Lake Bioenergy [Member] | Corn Oil [Member] | |||
Purchase Commitment, Excluding Long-term Commitment [Line Items] | |||
Future Commitment, Dollar | $ 383,000 | ||
Heron Lake Bioenergy [Member] | Ethanol Contracts [Member] | |||
Purchase Commitment, Excluding Long-term Commitment [Line Items] | |||
Future Commitment, Dollar | $ 2,366,000 | ||
Revenue Concentration, Future Commitment | 15.00% | ||
Heron Lake Bioenergy [Member] | Distillers Grains [Member] | |||
Purchase Commitment, Excluding Long-term Commitment [Line Items] | |||
Future Commitment, Dollar | $ 151,000 | ||
Heron Lake Bioenergy [Member] | Corn Oil [Member] | |||
Purchase Commitment, Excluding Long-term Commitment [Line Items] | |||
Written Notice | P90D | ||
Contract, Initial Length | P1Y | ||
Corn Contracts [Member] | Granite Falls Energy [Member] | |||
Purchase Commitment, Excluding Long-term Commitment [Line Items] | |||
Inventory Dollars, Outside Storage | $ 1,300,000 | ||
Inventory, Outside storage | bu | 380,000 | ||
Corn Contracts [Member] | Heron Lake Bioenergy [Member] | |||
Purchase Commitment, Excluding Long-term Commitment [Line Items] | |||
Inventory, Outside storage | bu | 2,604,000 |
Quarterly Financial Data (Una51
Quarterly Financial Data (Unaudited) Quarterly Financial Data (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||||||
Oct. 31, 2015 | Jul. 31, 2015 | Apr. 30, 2015 | Jan. 31, 2015 | Oct. 31, 2014 | Jul. 31, 2014 | Apr. 30, 2014 | Jan. 31, 2014 | Oct. 31, 2013 | Apr. 30, 2013 | Jan. 31, 2013 | Jul. 31, 2013 | Oct. 31, 2015 | Oct. 31, 2014 | Oct. 31, 2013 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||
Revenues | $ 54,823,174 | $ 58,671,723 | $ 59,067,109 | $ 58,692,502 | $ 63,783,301 | $ 78,383,846 | $ 81,324,024 | $ 77,463,813 | $ 80,079,134 | $ 48,020,602 | $ 47,117,122 | $ 48,884,076 | $ 231,254,508 | $ 300,954,984 | $ 224,100,934 |
Gross Profit | 2,631,235 | 8,795,890 | 5,545,088 | 5,628,105 | 14,844,764 | 16,043,874 | 18,212,259 | 14,420,458 | 6,311,018 | 3,629,972 | 832,144 | 2,710,179 | 22,600,318 | 63,521,355 | 14,023,313 |
Operating Income (Loss) | 1,551,398 | 7,494,444 | 4,173,843 | 4,204,718 | 13,580,276 | 14,833,232 | 16,832,384 | 13,124,957 | 5,521,116 | 3,047,007 | 269,449 | 2,197,158 | $ 17,424,403 | $ 58,370,849 | $ 11,034,730 |
Net Income (Loss) Available to Members | $ 1,199,256 | $ 5,440,763 | $ 3,179,639 | $ 3,767,092 | $ 10,951,485 | $ 13,018,046 | $ 14,249,413 | $ 10,554,947 | $ 4,604,950 | $ 3,031,943 | $ 221,427 | $ 2,173,701 | |||
Earnings Per Share, Diluted | $ 39.18 | $ 177.77 | $ 103.89 | $ 123.08 | $ 357.82 | $ 425.34 | $ 465.58 | $ 344.87 | $ 159.31 | $ 99.06 | $ 7.23 | $ 71.02 | $ 443.92 | $ 1,593.61 | $ 327.78 |