Document and Entity Information
Document and Entity Information Document - shares | 6 Months Ended | |
Apr. 30, 2016 | Jun. 14, 2016 | |
Document and Entity Information [Abstract] | ||
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-Q | |
Document Period End Date | Apr. 30, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 30,606 | |
Entity Current Reporting Status | Yes |
Balance Sheets
Balance Sheets - USD ($) | Apr. 30, 2016 | Oct. 31, 2015 |
Current Assets | ||
Cash | $ 10,564,279 | $ 12,696,536 |
Restricted cash | 630,941 | |
Accounts receivable | 1,899,734 | 9,667,472 |
Inventory | 11,732,326 | 12,212,025 |
Commodity derivative instruments | 126,874 | 677,149 |
Prepaid expenses and other current assets | 454,379 | 259,862 |
Total current assets | 25,408,533 | 35,513,044 |
Property, Plant and Equipment | ||
Property and Equipment, net | 82,617,111 | 84,304,162 |
Goodwill | 1,372,473 | 1,372,473 |
Other Assets | 800,328 | 821,402 |
Total Assets | 110,198,445 | 122,011,081 |
Current Liabilities | ||
Checks drawn in excess of bank balance | 998,233 | 1,836,682 |
Current maturities of long-term debt | 519,404 | 517,957 |
Accounts payable | 3,904,330 | 4,643,130 |
Corn payable to FCE | 1,853,442 | 1,486,247 |
Commodity derivative instruments | 159,325 | 1,114 |
Accrued expenses | 977,657 | 654,550 |
Total current liabilities | 8,412,391 | 9,139,680 |
Long-term Debt, less current portion | $ 6,535,140 | $ 6,711,975 |
Commitments and Contingencies | ||
Members' equity attributable to Granite Falls Energy, LLC consists of 30,606 units authorized, issued, and outstanding | $ 75,672,760 | $ 84,602,607 |
Non-controlling interest | 19,578,154 | 21,556,819 |
Total members' equity | 95,250,914 | 106,159,426 |
Total Liabilities and Members’ Equity | $ 110,198,445 | $ 122,011,081 |
Balance Sheets (Parenthetical)
Balance Sheets (Parenthetical) - shares | Apr. 30, 2016 | Oct. 31, 2015 |
Condensed Balance Sheets [Abstract] | ||
Common Stock, Shares Authorized | 30,606 | 30,606 |
Common Stock, Shares, Issued | 30,606 | 30,606 |
Common stock, shares outstanding | 30,606 | 30,606 |
Statements of Operations
Statements of Operations - USD ($) | 3 Months Ended | 6 Months Ended | ||
Apr. 30, 2016 | Apr. 30, 2015 | Apr. 30, 2016 | Apr. 30, 2015 | |
Condensed Statements of Operations [Abstract] | ||||
Revenues | $ 50,974,398 | $ 59,067,109 | $ 101,976,052 | $ 117,759,611 |
Cost of Goods Sold | 48,700,701 | 53,522,021 | 98,269,478 | 106,586,418 |
Gross Profit | 2,273,697 | 5,545,088 | 3,706,574 | 11,173,193 |
Operating Expenses | 1,489,496 | 1,371,245 | 2,890,342 | 2,794,632 |
Operating Income | 784,201 | 4,173,843 | 816,232 | 8,378,561 |
Other Income (Expense) | ||||
Other income (expense), net | 31,128 | (4,568) | 98,807 | 42,406 |
Interest income | 1,737 | 747 | 4,536 | 4,395 |
Interest expense | (104,678) | (109,027) | (180,642) | (179,494) |
Total other expense, net | (71,813) | (112,848) | (77,299) | (132,693) |
Net Income | 712,388 | 4,060,995 | 738,933 | 8,245,868 |
Less:Net Income Attributable to Non-controlling Interest | 12,874 | 881,356 | 27,893 | 1,299,137 |
Net Income Attributable to Granite Falls Energy, LLC | $ 699,514 | $ 3,179,639 | $ 711,040 | $ 6,946,731 |
Weighted Average Units Outstanding - Basic and Diluted | 30,606 | 30,606 | 30,606 | 30,606 |
Net Income Per Unit - Basic and Diluted | $ 22.86 | $ 103.89 | $ 23.23 | $ 226.97 |
Distributions Per Unit - Basic and Diluted | $ 315 | $ 1,050 |
Statements of Cash Flows
Statements of Cash Flows - USD ($) | 6 Months Ended | |
Apr. 30, 2016 | Apr. 30, 2015 | |
Cash Flows from Operating Activities | ||
Net income | $ 738,933 | $ 8,245,868 |
Adjustments to reconcile net income to net cash provided by operations: | ||
Depreciation and amortization | 4,778,933 | 4,749,250 |
Change in fair value of commodity derivative instruments | (113,708) | 612,629 |
Change in operating assets and liabilities | ||
Restricted cash | (630,941) | (219,296) |
Commodity derivative instruments | 822,194 | 908,097 |
Accounts receivable | 7,767,738 | 239,731 |
Inventory | 479,699 | 222,885 |
Prepaid expenses and other current assets | (194,517) | (314,022) |
Accounts payable | (830,857) | (2,044,199) |
Accrued expenses | 323,107 | 137,660 |
Net Cash Provided by Operating Activities | 13,140,581 | 12,538,603 |
Cash Flows from Investing Activities | ||
Payments for capital expenditures | (2,611,556) | (5,033,280) |
Net Cash Used in Investing Activities | (2,611,556) | (5,033,280) |
Cash Flows from Financing Activities | ||
Proceeds from checks drawn in excess of bank balance | (838,449) | 9,756,420 |
Proceeds from long-term debt | 7,611,180 | |
Payments on long-term debt | (7,786,568) | (475,863) |
Distributions to non-controlling interests | (2,006,558) | (4,621,340) |
Member distributions paid | (9,640,887) | (32,136,300) |
Net Cash Used in Financing Activities, Continuing Operations, Total | (12,661,282) | (27,477,083) |
Net Decrease in Cash | (2,132,257) | (19,971,760) |
Cash - Beginning of Period | 12,696,536 | 27,209,010 |
Cash - End of Period | 10,564,279 | 7,237,250 |
Cash paid during the period for: | ||
Interest Expense | 180,642 | 152,451 |
Supplemental Disclosure of Noncash Investing, Operating and Financing Activities | ||
Capital expenditures and construction in process included in accounts payable | $ 881,703 | $ 272,954 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Apr. 30, 2016 | |
Accounting Policies [Abstract] | |
Summary of Significant Account Policies | 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation and Principles of Consolidation The accompanying condensed consolidated unaudited financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and disclosures normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted as permitted by such rules and regulations. These financial statements and related notes should be read in conjunction with the financial statements and notes thereto included in the Company’s audited consolidated financial statements for the year ended October 31, 2015, contained in the Company’s annual report on Form 10-K. In the opinion of management, the condensed consolidated unaudited financial statements reflect all adjustments consisting of normal recurring accruals that we consider necessary to present fairly the Company’s results of operations, financial position and cash flows. The results reported in these condensed consolidated unaudited financial statements should not be regarded as necessarily indicative of results that may be expected for any other fiscal period or for the fiscal year. 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 permitted to produce approximately 72.3 million gallons 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 HLBE's ethanol production facility and other customers. Principles of Consolidation The accompanying condensed consolidated unaudited financial statements consolidate the operating results and financial position of GFE, and its 50.6% owned subsidiary, HLBE (through GFE's 100% ownership of Project Viking, LLC). Given the Company’s control over the operations of HLBE and its majority voting interest, the Company consolidates the condensed consolidated unaudited financial statements of HLBE with GFE's condensed consolidated unaudited financial statements. The remaining 49.4% ownership of HLBE is included in the condensed consolidated unaudited 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 unaudited financial statements, with the equity and earnings attributed to the remaining 27% noncontrolling interest. All intercompany balances and transactions are eliminated in consolidation. Segment Reporting Operating segments are defined as components of an enterprise for which separate financial information is available that is evaluated regularly by the chief operating decision maker or decision making group in deciding how to allocate resources and in assessing performance. The Company has determined that it has one reportable business segment, the manufacture and marketing of fuel-grade ethanol and the co-products of the ethanol production process. Although the Company also realizes relatively immaterial revenue from natural gas pipeline operations at Agrinatural, the Company's chief operating decision maker reviews financial information of the Company as a whole for purposes of assessing financial performance and making operating decisions and does not separately review Agrinatural's operating performance information. Accordingly, the Company considers itself to be operating in a single industry segment. Accounting Estimates Management uses estimates and assumptions in preparing these condensed consolidated unaudited financial statements in accordance with generally accepted accounting principles in the United States of America. Those estimates and assumptions affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities, and the reported revenues and expenses. The Company uses estimates and assumptions in accounting for the following significant matters, among others: economic lives of property, plant, and equipment, valuation of commodity derivatives, inventory, and inventory purchase and sale commitments, and the assumptions used in the impairment analysis of long-lived assets and goodwill. Actual results may differ from previously estimated amounts, and such differences may be material to our condensed consolidated unaudited 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. 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. 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 spare parts. 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 on the balance sheets at fair value. In order for a derivative to qualify as a hedge, specific criteria must be met and appropriate documentation maintained. Gains and losses from derivatives that do not qualify as hedges, or are undesignated, must be recognized immediately in earnings. If the derivative does qualify as a hedge, depending on the nature of the hedge, changes in the fair value of the derivative will be either offset against the change in fair value of the hedged assets, liabilities, or firm commitments through earnings or recognized in other comprehensive income until the hedged item is recognized in earnings. Changes in the fair value of undesignated derivatives are recorded in earnings. Additionally, the Company is required to evaluate its contracts to determine whether the contracts are derivatives. Certain contracts that literally meet the definition of a derivative may be exempted as “normal purchases or normal sales”. Normal purchases and normal sales are contracts that provide for the purchase or sale of something other than a financial instrument or derivative instrument that will be delivered in quantities expected to be used or sold over a reasonable period in the normal course of business. Contracts that meet the requirements of normal purchases or sales are documented as normal and exempted from accounting and reporting requirements, and therefore, are not marked to market in our condensed consolidated unaudited financial statements. In order to reduce the risks caused by market fluctuations, the Company occasionally hedges its anticipated corn, natural gas, and denaturant purchases and ethanol sales by entering into options and futures contracts. These contracts are used with the intention to fix the purchase price of anticipated requirements for corn in the Company's ethanol production activities and the related sales price of ethanol. The fair value of these contracts is based on quoted prices in active exchange-traded or over-the-counter market conditions. Although the Company believes its commodity derivative positions are economic hedges, none have been formally designated as a hedge for accounting purposes and derivative positions are recorded on the balance sheet at their fair market value, with changes in fair value recognized in current period earnings or losses. The Company does not enter into financial instruments for trading or speculative purposes. The Company has adopted authoritative guidance related to “Derivatives and Hedging,” and has included the required enhanced quantitative and qualitative disclosure about objectives and strategies for using derivatives, quantitative disclosures about fair value amounts of gains and losses from derivative instruments, and disclosures about credit-risk-related contingent features in derivative agreements. See further discussion in Note 4. Correction Of An Immaterial Error The Company revised the condensed consolidated unaudited statement of cash flows for the six months ended April 30 , 201 5 , to correct for a non-cash acquisition of property and equipment resulting in an increase in cash provided by operating activities of $3,359,225 and a corresponding decrease in net cash provided by investing activities. |
Risks and Uncertainties
Risks and Uncertainties | 6 Months Ended |
Apr. 30, 2016 | |
Item 2 Risks and Uncertainties [Abstract] | |
Risks and Uncertainties | 2. RISKS AND UNCERTAINTIES The Company has certain risks and uncertainties that it experiences during volatile market conditions. These volatilities can have a severe impact on operations. The Company's revenues are derived from the sale and distribution of ethanol, distillers' grains, corn oil, and natural gas to customers primarily located in the United States. Corn for the production process is supplied to our plant primarily from local agricultural producers and from purchases on the open market. Ethanol sales typically average 75 - 85% of total revenues and corn costs typically average 65 - 85% of cost of goods sold. The Company's operating and financial performance is largely driven by the prices at which they sell ethanol and the net expense of corn. The price of ethanol is influenced by factors such as supply and demand, the weather, government policies and programs, and unleaded gasoline prices and the petroleum markets as a whole. Excess ethanol supply in the market, in particular, puts downward pressure on the price of ethanol. Our largest cost of production is corn. The cost of corn is generally impacted by factors such as supply and demand, the weather, government policies and programs, and our risk management program used to protect against the price volatility of these commodities. |
Inventory
Inventory | 6 Months Ended |
Apr. 30, 2016 | |
Inventory [Abstract] | |
Inventory | 3. INVENTORY Inventories consist of the following: April 30, 2016 October 31, 2015 (unaudited) Raw materials $ $ Supplies Work in process Finished goods Totals $ $ 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 recorded a loss on ethanol inventories , as a component of cost of goods sold, of approximately $232,000 and $0 for the three and six month periods ended April 30, 2016 and 2015, respectively. |
Derivative Instruments
Derivative Instruments | 6 Months Ended |
Apr. 30, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities Disclosure [Text Block] | 4. DERIVATIVE INSTRUMENTS As of April 30, 2016 , the total notional amount of the Company's outstanding corn derivative instruments was approximately 4,820,000 bushels, comprised of 1,900,000 and 2,920,000 bushel equivalent positions held by GFE and HLBE, respectively, that were entered into to hedge forecasted corn purchases through March 2017 . 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. As of April 30, 2016 , the total notional amount of the Company’s outstanding ethanol derivative instruments was approximately 8,400,000 gallons , comprised of approximately 4,200,000 gallon s of equivalent positions held by each of GFE and HLBE that were entered into to hedge forecasted ethanol sales through August 2016. The following tables provide details regarding the Company's derivative instruments at April 30, 2016 , none of which were designated as hedging instruments: Balance Sheet location Assets Liabilities Corn contracts - GFE Commodity derivative instruments $ — $ Corn contracts - HLBE Commodity derivative instruments — Ethanol contracts - GFE Commodity derivative instruments — Ethanol contracts - HLBE Commodity derivative instruments — Totals $ $ In addition, at April 30, 2016 , the Company maintained approximately $ 631 ,000 of restricted cash, comprised of approximately $188,000 held by GFE and $443,000 held by HLBE related to margin requirements for the Company’s commodity derivative instrument positions. 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 $ — $ Corn contracts - HLBE Commodity derivative instruments — Totals $ $ At October 31, 2015, the Company did not have any cash collateral (restricted cash) related to commodity derivatives held by a broker. The following tables provide details regarding the gains and losses from Company's derivative instruments in statements of operations, none of which are designated as hedging instruments: Statement of Three Months Ended April 30, Operations Location 2016 2015 Corn contracts Cost of Goods Sold $ $ Ethanol contracts Revenues — Natural gas contracts Cost of Goods Sold — Total gain (loss) $ $ Statement of Six Months Ended April 30, Operations Location 2016 2015 Corn contracts Cost of Goods Sold $ $ Ethanol contracts Revenues — Natural gas contracts Cost of Goods Sold — Total gain (loss) $ $ |
Fair Value
Fair Value | 6 Months Ended |
Apr. 30, 2016 | |
Fair Value [Abstract] | |
Fair Value | 5. FAIR VALUE The following table provides information on those derivative assets and liabilities measured at fair value on a recurring basis at April 30, 2016 : Fair Value Measurement Using Quoted Prices Significant Other Significant Carrying Amount in Active Markets Observable Inputs Unobservable Inputs Financial Asset: in Balance Sheet (Level 1) (Level 2) (Level 3) Commodity Derivative Instruments - Ethanol $ $ $ — $ — Financial Liabilities Commodity Derivative Instruments - Corn $ $ $ — $ — The following table provides information on those derivative liabilities measured at fair value on a recurring basis at October 31, 2015: Fair Value Measurement Using Quoted Prices Significant Other Significant Carrying Amount in Active Markets Observable Inputs Unobservable Inputs Financial Asset: in Balance Sheet (Level 1) (Level 2) (Level 3) Commodity Derivative Instruments - Ethanol $ $ $ — $ — Financial Liabilities: Commodity Derivative Instruments - Corn $ $ $ — $ — The Company determines the fair value of commodity derivative instruments by obtaining fair value measurements from an independent pricing service. The fair value measurements consider observable data that may include dealer quotes and live trading levels from the Chicago Board of Trade market and New York Mercantile Exchange. |
Debt Facilities
Debt Facilities | 6 Months Ended |
Apr. 30, 2016 | |
Debt Disclosure [Abstract] | |
Debt Disclosure [Text Block] | 6. DEBT FACILITIES Debt financing consists of the following: April 30, 2016 October 31, 2015 HERON LAKE BIOENERGY: (unaudited) Revolving term loan to lending institution, see terms below $ $ Assessments payable Note payable to electrical company Note payable to noncontrolling interest member of Agrinatural Totals Less amounts due within one year Net long-term debt $ $ Granite Falls Energy : GFE has a revolving term loan facility, under which GFE could initially borrow, repay, and re-borrow in an amount up to $18,000,000 . Under the terms of this revolving term loan facility, the revolving term loan principal commitment for borrowing under this facility reduces by $2,000,000 semi-annually, beginning September 1, 2014, with final payment due March 1, 2018. GFE had no outstanding balance on the revolving term loan at April 30, 2016, and October 31, 2015. Therefore, the aggregate principal amount available for borrowing under this revolving term loan facility at April 30, 2016 and at October 31, 2015 was $10,000,000 and $12,000,000 , respectively. The interest rate is based on the bank's "One Month LIBOR Index Rate," plus 3.05%. The credit facility also requires GFE to comply with certain financial covenants at various times calculated monthly, quarterly or annually, including restriction of the payment of dividends and maintenance of certain financial ratios including minimum working capital, minimum net worth and a debt service coverage ratio as defined by the credit facility. Failure to comply with the protective loan covenants or maintain the required financial ratios may cause acceleration of the outstanding principal balances on the revolving term loan and/or the imposition of fees, charges or penalties. As of April 30, 2016 and October 31, 2015, 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. There are no savings account balance collateral requirements as part of this credit facility. Heron Lake BioEnergy : HLBE has a revolving term loan with a lender initially totaling $28,000,000 . Amounts borrowed by HLBE under the revolving term loan and repaid or prepaid may be re-borrowed at any time prior to the March 1, 2022 maturity date. Under the terms of the credit facility, the revolving term loan principal commitment is scheduled to decline by $3,500,000 annually, starting March 1, 2015 and continues each anniversary thereafter until maturity. Therefore, the aggregate principal commitment under this facility at April 30, 2016 was $21,000,000 . After accounting for amounts outstanding under this facility at April 30, 2016, the aggregate principal amount available to HLBE for borrowing was approximately $16,196,000. The outstanding balance on the revolving term loan totaled approximately $4,804,000 and $4,823,000 at April 30, 2016, and October 31, 2015, respectively. Interest on the revolving term loan accrues at a variable rate equal to 3.25% above the One-Month London Interbank Offered Rate (" LIBOR ") Index rate. HLBE may elect to enter into a fixed interest rate on this loan at various times throughout the term of the loan as provided in the loan agreements. The interest rate on the revolving term loan was 3.69% and 3.45% at April 30, 2016, and October 31, 2015, respectively. HLBE also agreed to pay an unused commitment fee on the unused portion of the revolving term loan commitment at the rate of 0.50% per annum. The revolving term loan is subject to a prepayment fee for any prepayment on the term loan prior to July 1, 2016 due to refinancing. The loan is secured by substantially all of HLBE's assets including a subsidiary guarantee. During the term of the revolving term loan , HLBE is subject to certain financial covenants at various times calculated monthly, quarterly or annually, including restriction of the payment of dividends and loans and advances to Agrinatural and maintenance of certain financial ratios including minimum working capital, minimum net worth and a debt service coverage ratio as defined by the credit facility. Failure to comply with the protective loan covenants or maintain the required financial ratios may cause acceleration of the outstanding principal balances on the revolving term loan and/or the imposition of fees, charges or penalties. As of April 30, 2016 and October 31, 2015, HLBE was in compliance with these financial covenants and expects to be in compliance throughout fiscal 2016. As part of the credit facility closing, HLBE entered into an Administrative Agency Agreement with CoBank, ACP ("CoBank"). CoBank purchased a participation interest in the AgStar loans and was appointed the administrative agent for the purpose of servicing the loans. As a result, CoBank will act as the agent for AgStar with respect to the credit facility. In October 2003, HLBE entered into an industrial water supply development and distribution agreement with the City of Heron Lake, Jackson County, and Minnesota Soybean Processors. In consideration of this agreement, HLBE and Minnesota Soybean Processors are allocated equally the debt service on $735,000 in water revenue bonds that were issued by the City to support this project that mature in February 2019. The parties have agreed that, prior to the scheduled expiration of the agreement, they will negotiate in good faith to replace the agreement with a further agreement regarding the wells and related facilities. In May 2006, HLBE entered into an industrial water supply treatment agreement with the City of Heron Lake and Jackson County. Under this agreement, HLBE pays monthly installments over 24 months starting January 1, 2007 equal to one years' debt service on approximately $3.6 million in water revenue bonds, which will be returned to HLBE if any funds remain after final payment in full on the bonds and assuming HLBE complies with all payment obligations under the agreement. As of April 30, 2016 and October 31, 2015, there were a total of approximately $1,945,000 and $1,963,000 , respectively, in outstanding water revenue bonds. HLBE classifies its obligations under these bonds as assessments payable. The interest rates on the bonds range from 0.50% to 8.73 %. Estimated annual maturities of debt at April 30, 2016, are as follows based on the most recent debt agreements: 2016 $ 2017 2018 2019 2020 After 2020 Total debt $ |
Leases
Leases | 6 Months Ended |
Apr. 30, 2016 | |
Leases [Abstract] | |
Leases | 7. LEASES GFE leases equipment, primarily rail cars, under operating leases through 2025. Rent expense for these leases was approximately $812,000 and $610,000 for the three months ended ended April 30, 2016 and 2015, respectively , and approximately $1,706,000 and $1,204,000 for the six months ended April 30, 2016, and 2015, respectively . HLBE leases equipment, primarily rail cars, under operating leases through 2017. Rent expense for these leases was approximately $710,000 and $528,000 for the three months ended April 30, 2016 and 2015, respectively , and approximately $1,245,000 and $1,047,000 for the six months ended April 30, 2016 and 2015, respectively . |
Members' Equity
Members' Equity | 6 Months Ended |
Apr. 30, 2016 | |
Members' Equity [Abstract] | |
Members' Equity | 8. MEMBERS' EQUITY GFE has one class of membership units. The units have no par value and have identical rights, obligations and privileges. Income and losses are allocated to all members based upon their respective percentage of units held. As of April 30, 2016 and October 31, 2015, GFE had 30,606 membership units authorized , issued, and outstanding. In December 2014, the Board of Governors of GFE declared a cash distribution of $1,050 per unit or approximately $32,136,000 , for unit holders of record as of December 18, 2014. The distribution was paid in January 2015. In December 2015, the Board of Governors of GFE declared a cash distribution of $3 15 per unit, or approximately $9,641,000 , for unit holders of record as of December 17, 2015 . The distribution was paid in January 2016. In December 2014, the Board of Governors of HLBE declared a cash distribution of $0.12 per unit or approximately $9,352,000 for unit holders of record as of December 18, 2014, of which approximately $4,621,000 was made to the non-controlling interest members of HLBE. The distribution was paid in January 2015. In December 2015, the Board of Governors of HLBE declared a cash distribution of $0.05 per unit, or approximately $3,897,000 , for unit holders of record as of December 17, 2015 , of which approximately $2,007,000 was made to the noncontrolling interest members of HLBE . The distribution was paid in January 2016. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Apr. 30, 2016 | |
Commitments and Contingencies [Abstract] | |
Commitments and Contingencies | 9. COMMITMENTS AND CONTINGENCIES Corn Contracts At April 30, 2016, GFE had no forward corn contracts. At A pril 30, 2016 , HBLE had no cash and basis contracts for forward corn purchase commitments for approximately 6,970,000 bushels for deliveries through January 201 7 . Ethanol Contracts At April 30, 2016 , GFE had basis contracts to sell approximately $17,600,000 of ethanol for various delivery periods through September 2016 which approximates 45% of its anticipated ethanol sales during this period. At April 30, 2016 , HLBE had basis contracts to sell approximately $17,400,000 of ethanol for various delivery periods through September 2016 which approximates 45% of its anticipated ethanol sales during this period. Distillers' Grain Contracts At April 30, 2016 , GFE had forward contracts to sell approximately $658,000 of distillers' grain for deliveries through June 2016. At April 30, 2016 , HLBE had forward contracts to sell approximately $903,000 of distillers' grains for delivery through September 2016. Corn Oil At April 30, 2016 , GFE had forward contracts to sell approximately $723,500 of corn oil for delivery through December 2016. At April 30, 2016 , HLBE had forward contracts to sell approximately $930,000 of corn oil for delivery through December 2016. 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 $2,700,000 and is expected to be completed during our 2016 fiscal year. As of April 30, 2016, approximately $2,450,000 has been recorded against this project and is recorded as a component of construction in progress included in Property and Equipment on the Company’s balance sheet. 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 $1,900,000 and is expected to be completed during the latter part of fiscal year 2016. |
Summary of Significant Accoun15
Summary of Significant Accounting Policies - (Policies) | 6 Months Ended |
Apr. 30, 2016 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Significant Accounting Policies [Text Block] | Basis of Presentation and Principles of Consolidation The accompanying condensed consolidated unaudited financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and disclosures normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted as permitted by such rules and regulations. These financial statements and related notes should be read in conjunction with the financial statements and notes thereto included in the Company’s audited consolidated financial statements for the year ended October 31, 2015, contained in the Company’s annual report on Form 10-K. In the opinion of management, the condensed consolidated unaudited financial statements reflect all adjustments consisting of normal recurring accruals that we consider necessary to present fairly the Company’s results of operations, financial position and cash flows. The results reported in these condensed consolidated unaudited financial statements should not be regarded as necessarily indicative of results that may be expected for any other fiscal period or for the fiscal year. |
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 permitted to produce approximately 72.3 million gallons 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 HLBE's ethanol production facility and other customers. |
Consolidation, Policy [Policy Text Block] | Principles of Consolidation The accompanying condensed consolidated unaudited financial statements consolidate the operating results and financial position of GFE, and its 50.6% owned subsidiary, HLBE (through GFE's 100% ownership of Project Viking, LLC). Given the Company’s control over the operations of HLBE and its majority voting interest, the Company consolidates the condensed consolidated unaudited financial statements of HLBE with GFE's condensed consolidated unaudited financial statements. The remaining 49.4% ownership of HLBE is included in the condensed consolidated unaudited 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 unaudited financial statements, with the equity and earnings attributed to the remaining 27% noncontrolling interest. All intercompany balances and transactions are eliminated in consolidation. |
Use of Estimates, Policy [Policy Text Block] | Segment Reporting Operating segments are defined as components of an enterprise for which separate financial information is available that is evaluated regularly by the chief operating decision maker or decision making group in deciding how to allocate resources and in assessing performance. The Company has determined that it has one reportable business segment, the manufacture and marketing of fuel-grade ethanol and the co-products of the ethanol production process. Although the Company also realizes relatively immaterial revenue from natural gas pipeline operations at Agrinatural, the Company's chief operating decision maker reviews financial information of the Company as a whole for purposes of assessing financial performance and making operating decisions and does not separately review Agrinatural's operating performance information. Accordingly, the Company considers itself to be operating in a single industry segment. Accounting Estimates Management uses estimates and assumptions in preparing these condensed consolidated unaudited financial statements in accordance with generally accepted accounting principles in the United States of America. Those estimates and assumptions affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities, and the reported revenues and expenses. The Company uses estimates and assumptions in accounting for the following significant matters, among others: economic lives of property, plant, and equipment, valuation of commodity derivatives, inventory, and inventory purchase and sale commitments, and the assumptions used in the impairment analysis of long-lived assets and goodwill. Actual results may differ from previously estimated amounts, and such differences may be material to our condensed consolidated unaudited financial statements. The Company periodically reviews estimates and assumptions, and the effects of revisions are reflected in the period in which the revision is made. |
Revenue Recognition, Policy [Policy Text Block] | Revenue Recognition The Company generally sells ethanol and related products pursuant to marketing agreements. Revenues from the production of ethanol and the related products are recorded when the customer has taken title and assumed the risks and rewards of ownership, prices are fixed or determinable and collectability is reasonably assured. Ethanol and related products are generally shipped free on board (FOB) shipping point. The Company believes there are no ethanol sales, during any given month, which should be considered contingent and recorded as deferred revenue. In accordance with the Company's agreements for the marketing and sale of ethanol and related products, marketing fees and commissions due to the marketers are deducted from the gross sales price as earned. These fees and commissions are recorded net of revenues, as they do not provide an identifiable benefit that is sufficiently separable from the sale of ethanol and related products. Shipping costs paid by the Company to the marketer in the sale of ethanol are not specifically identifiable and, as a result, are recorded based on the net selling price reported to the Company from the marketer. Shipping costs incurred by the Company in the sale of distillers' grains and corn oil are included in cost of goods sold. |
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. 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 spare parts. Corn is the primary raw material along with other raw materials. Finished goods consist of ethanol, distillers' grains, and corn oil. |
Derivatives, Policy [Policy Text Block] | Derivative Instruments From time to time the Company enters into derivative transactions to hedge its exposures to commodity price fluctuations. The Company is required to record these derivatives on the balance sheets at fair value. In order for a derivative to qualify as a hedge, specific criteria must be met and appropriate documentation maintained. Gains and losses from derivatives that do not qualify as hedges, or are undesignated, must be recognized immediately in earnings. If the derivative does qualify as a hedge, depending on the nature of the hedge, changes in the fair value of the derivative will be either offset against the change in fair value of the hedged assets, liabilities, or firm commitments through earnings or recognized in other comprehensive income until the hedged item is recognized in earnings. Changes in the fair value of undesignated derivatives are recorded in earnings. Additionally, the Company is required to evaluate its contracts to determine whether the contracts are derivatives. Certain contracts that literally meet the definition of a derivative may be exempted as “normal purchases or normal sales”. Normal purchases and normal sales are contracts that provide for the purchase or sale of something other than a financial instrument or derivative instrument that will be delivered in quantities expected to be used or sold over a reasonable period in the normal course of business. Contracts that meet the requirements of normal purchases or sales are documented as normal and exempted from accounting and reporting requirements, and therefore, are not marked to market in our condensed consolidated unaudited financial statements. In order to reduce the risks caused by market fluctuations, the Company occasionally hedges its anticipated corn, natural gas, and denaturant purchases and ethanol sales by entering into options and futures contracts. These contracts are used with the intention to fix the purchase price of anticipated requirements for corn in the Company's ethanol production activities and the related sales price of ethanol. The fair value of these contracts is based on quoted prices in active exchange-traded or over-the-counter market conditions. Although the Company believes its commodity derivative positions are economic hedges, none have been formally designated as a hedge for accounting purposes and derivative positions are recorded on the balance sheet at their fair market value, with changes in fair value recognized in current period earnings or losses. The Company does not enter into financial instruments for trading or speculative purposes. The Company has adopted authoritative guidance related to “Derivatives and Hedging,” and has included the required enhanced quantitative and qualitative disclosure about objectives and strategies for using derivatives, quantitative disclosures about fair value amounts of gains and losses from derivative instruments, and disclosures about credit-risk-related contingent features in derivative agreements. See further discussion in Note 4. |
Reclassification, Policy [Policy Text Block] | Correction Of An Immaterial Error The Company revised the condensed consolidated unaudited statement of cash flows for the six months ended April 30 , 201 5 , to correct for a non-cash acquisition of property and equipment resulting in an increase in cash provided by operating activities of $3,359,225 and a corresponding decrease in net cash provided by investing activities. |
Inventory (Tables)
Inventory (Tables) | 6 Months Ended |
Apr. 30, 2016 | |
Inventory in Process [Abstract] | |
Schedule of Inventory, Current [Table Text Block] | April 30, 2016 October 31, 2015 (unaudited) Raw materials $ $ Supplies Work in process Finished goods Totals $ $ |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 6 Months Ended |
Apr. 30, 2016 | |
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 April 30, 2016, none of which were designated as hedging instruments: Balance Sheet location Assets Liabilities Corn contracts - GFE Commodity derivative instruments $ — $ Corn contracts - HLBE Commodity derivative instruments — Ethanol contracts - GFE Commodity derivative instruments — Ethanol contracts - HLBE Commodity derivative instruments — Totals $ $ 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 $ — $ Corn contracts - HLBE Commodity derivative instruments — Totals $ $ |
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance [Table Text Block] | The following tables provide details regarding the gains and losses from Company's derivative instruments in statements of operations, none of which are designated as hedging instruments: Statement of Three Months Ended April 30, Operations Location 2016 2015 Corn contracts Cost of Goods Sold $ $ Ethanol contracts Revenues — Natural gas contracts Cost of Goods Sold — Total gain (loss) $ $ Statement of Six Months Ended April 30, Operations Location 2016 2015 Corn contracts Cost of Goods Sold $ $ Ethanol contracts Revenues — Natural gas contracts Cost of Goods Sold — Total gain (loss) $ $ |
Fair Value (Tables)
Fair Value (Tables) | 6 Months Ended |
Apr. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | The following table provides information on those derivative assets and liabilities measured at fair value on a recurring basis at April 30, 2016 : Fair Value Measurement Using Quoted Prices Significant Other Significant Carrying Amount in Active Markets Observable Inputs Unobservable Inputs Financial Asset: in Balance Sheet (Level 1) (Level 2) (Level 3) Commodity Derivative Instruments - Ethanol $ $ $ — $ — Financial Liabilities Commodity Derivative Instruments - Corn $ $ $ — $ — The following table provides information on those derivative liabilities measured at fair value on a recurring basis at October 31, 2015: Fair Value Measurement Using Quoted Prices Significant Other Significant Carrying Amount in Active Markets Observable Inputs Unobservable Inputs Financial Asset: in Balance Sheet (Level 1) (Level 2) (Level 3) Commodity Derivative Instruments - Ethanol $ $ $ — $ — Financial Liabilities: Commodity Derivative Instruments - Corn $ $ $ — $ — |
Debt Facilities (Tables)
Debt Facilities (Tables) | 6 Months Ended |
Apr. 30, 2016 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments [Table Text Block] | April 30, 2016 October 31, 2015 HERON LAKE BIOENERGY: (unaudited) Revolving term loan to lending institution, see terms below $ $ Assessments payable Note payable to electrical company Note payable to noncontrolling interest member of Agrinatural Totals Less amounts due within one year Net long-term debt $ $ |
Schedule of Maturities of Long-term Debt [Table Text Block] | Estimated annual maturities of debt at April 30, 2016, are as follows based on the most recent debt agreements: 2016 $ 2017 2018 2019 2020 After 2020 Total debt $ |
Summary of Significant Accoun20
Summary of Significant Accounting Policies - (Details) gal in Millions | 6 Months Ended | |
Apr. 30, 2016gal | Apr. 30, 2015USD ($) | |
Plant production capacity | 60 | |
Measurement, Rolling Twelve Months | twelve | |
Production (Actual) | 70 | |
Prior Period Reclassification Adjustment | $ | $ 3,359,225 | |
Heron Lake Bioenergy [Member] | ||
Plant production capacity | 60 | |
Production (Actual) | 72.3 | |
Equity Method Investment, Ownership Percentage | 50.60% | |
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 49.40% | |
Project Viking, LLC [Member] | ||
Equity Method Investment, Ownership Percentage | 100.00% | |
Agrinatural, LLC [Member] | ||
Equity Method Investment, Ownership Percentage | 73.00% | |
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 27.00% |
Risks and Uncertainties Narrati
Risks and Uncertainties Narrative (Details) | 6 Months Ended |
Apr. 30, 2016 | |
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% |
Inventory (Details)
Inventory (Details) - USD ($) | 6 Months Ended | ||
Apr. 30, 2016 | Apr. 30, 2015 | Oct. 31, 2015 | |
Inventory [Abstract] | |||
Raw materials | $ 2,570,650 | $ 4,504,388 | |
Supplies | 2,625,524 | 2,631,452 | |
Work in process | 1,555,217 | 1,445,084 | |
Finished goods | 4,980,935 | 3,631,101 | |
Total inventory, net | 11,732,326 | $ 12,212,025 | |
Loss on ethanol inventories | $ 232,000 | $ 0 |
Derivative Instrument - Asset A
Derivative Instrument - Asset And Liabilities (Details) | 6 Months Ended | |
Apr. 30, 2016USD ($)galbu | Oct. 31, 2015USD ($) | |
Derivatives, Fair Value [Line Items] | ||
Derivative Assets, Current | $ 126,874 | $ 677,149 |
Derivative Liabilities, Current | $ 159,325 | 1,114 |
Corn Contracts [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total notional amount outstanding | bu | 4,820,000 | |
Ethanol Contracts [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total notional amount outstanding | gal | 8,400,000 | |
Granite Falls Energy, LLC [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Restricted Cash and Cash Equivalents, Current | $ 188,000 | |
Granite Falls Energy, LLC [Member] | Corn Contracts [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total notional amount outstanding | bu | 1,900,000 | |
Derivative Liabilities, Current | $ 92,250 | 1,114 |
Granite Falls Energy, LLC [Member] | Ethanol Contracts [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total notional amount outstanding | gal | 4,200,000 | |
Derivative Assets, Current | $ 63,437 | |
Heron Lake Bio-energy LLC [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Restricted Cash and Cash Equivalents, Current | $ 443,000 | |
Heron Lake Bio-energy LLC [Member] | Corn Contracts [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total notional amount outstanding | bu | 2,920,000 | |
Derivative Assets, Current | $ 677,149 | |
Derivative Liabilities, Current | $ 67,075 | |
Heron Lake Bio-energy LLC [Member] | Ethanol Contracts [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets, Current | $ 63,437 |
Derivative Instrument - Income
Derivative Instrument - Income Statement (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Apr. 30, 2016 | Apr. 30, 2015 | Apr. 30, 2016 | Apr. 30, 2015 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments, Gain (Loss) Recognized in Income, Net | $ (186,152) | $ (4,257) | ||
Not Designated as Hedging Instrument [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments, Gain (Loss) Recognized in Income, Net | $ 113,708 | $ (612,629) | ||
Not Designated as Hedging Instrument [Member] | Natural Gas Contracts [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments, Gain (Loss) Recognized in Income, Net | 32,358 | |||
Not Designated as Hedging Instrument [Member] | Cost of Sales [Member] | Corn Contracts [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments, Gain (Loss) Recognized in Income, Net | (240,768) | $ (4,257) | (23,370) | $ (612,629) |
Not Designated as Hedging Instrument [Member] | Cost of Sales [Member] | Natural Gas Contracts [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments, Gain (Loss) Recognized in Income, Net | 32,358 | |||
Not Designated as Hedging Instrument [Member] | Sales [Member] | Ethanol Contracts [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments, Gain (Loss) Recognized in Income, Net | $ 22,258 | $ 104,720 |
Fair Value (Details)
Fair Value (Details) - USD ($) | Apr. 30, 2016 | Oct. 31, 2015 |
Derivative [Line Items] | ||
Derivative Asset, Current | $ 126,874 | $ 677,149 |
Ethanol Contracts [Member] | Fair Value, Measurements, Recurring [Member] | Carrying (Reported) Amount, Fair Value Disclosure [Member] | ||
Derivative [Line Items] | ||
Derivative Asset, Current | 126,874 | 677,149 |
Ethanol Contracts [Member] | Fair Value, Inputs, Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Derivative [Line Items] | ||
Derivative Asset, Current | 126,874 | 677,149 |
Corn Contracts [Member] | Fair Value, Measurements, Recurring [Member] | Carrying (Reported) Amount, Fair Value Disclosure [Member] | ||
Derivative [Line Items] | ||
Derivative Liabilities | 159,325 | 1,114 |
Corn Contracts [Member] | Fair Value, Inputs, Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Derivative [Line Items] | ||
Derivative Liabilities | $ 159,325 | $ 1,114 |
Debt Facilities - Debt Financin
Debt Facilities - Debt Financing (Details) - USD ($) | Apr. 30, 2016 | Oct. 31, 2015 |
Long-term Debt, Current Maturities | $ 519,404 | $ 517,957 |
Long-term Debt, less current portion | 6,535,140 | 6,711,975 |
Heron Lake Bioenergy [Member] | ||
Long-term Debt | 7,054,544 | 7,229,932 |
Long-term Debt, Current Maturities | 519,404 | 517,957 |
Long-term Debt, less current portion | 6,535,140 | 6,711,975 |
Agrinatural, LLC [Member] | ||
Notes Payable | 200,000 | 300,000 |
CoBank [Member] | Heron Lake Bioenergy [Member] | ||
Line of Credit Facility, Amount Outstanding | 4,803,756 | 4,822,777 |
City/County Jurisdiction [Member] | Heron Lake Bioenergy [Member] | ||
Line of Credit Facility, Amount Outstanding | 1,944,538 | 1,963,405 |
Federated Electric [Member] | Heron Lake Bioenergy [Member] | ||
Notes Payable | $ 106,250 | $ 143,750 |
Debt Facilities - Revolving Ter
Debt Facilities - Revolving Term Loans (Details) - USD ($) | 6 Months Ended | 12 Months Ended | |
Apr. 30, 2016 | Oct. 31, 2015 | Apr. 30, 2015 | |
CoBank [Member] | Heron Lake Bioenergy [Member] | |||
Line of Credit Facility [Line Items] | |||
Line of Credit Facility, Amount Outstanding | $ 4,803,756 | $ 4,822,777 | |
CoBank [Member] | Heron Lake Bioenergy [Member] | Revolving Term Loan [Member] | |||
Line of Credit Facility [Line Items] | |||
Line of Credit Facility, Maximum Borrowing Capacity | 21,000,000 | ||
Line of Credit Future Reduction, Amount | 3,500,000 | ||
Line of Credit Facility, Amount Outstanding | $ 4,804,000 | $ 4,823,000 | |
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.50% | ||
Debt Instrument, Basis Spread on Variable Rate | 3.25% | ||
Debt Instrument, Interest Rate During Period | 3.69% | 3.45% | |
CoBank [Member] | Heron Lake Bioenergy [Member] | Revolving Term Loan [Member] | Original Maximum Borrowing Capacity Upon Issuance [Member] | |||
Line of Credit Facility [Line Items] | |||
Line of Credit Facility, Maximum Borrowing Capacity | $ 28,000,000 | ||
City/County Jurisdiction [Member] | Heron Lake Bioenergy [Member] | |||
Line of Credit Facility [Line Items] | |||
Line of Credit Facility, Amount Outstanding | 1,944,538 | $ 1,963,405 | |
City/County Jurisdiction [Member] | Heron Lake Bioenergy [Member] | Water Revenue Bonds [Member] | |||
Line of Credit Facility [Line Items] | |||
Debt Instrument, Face Amount | 735,000 | ||
City/County Jurisdiction [Member] | Heron Lake Bioenergy [Member] | Water Treatment Plant [Member] | |||
Line of Credit Facility [Line Items] | |||
Line of Credit Facility, Maximum Borrowing Capacity | $ 3,600,000 | ||
Debt Instrument, Interest Rate, Stated Percentage Rate Range, Minimum | 0.50% | ||
Debt Instrument, Interest Rate, Stated Percentage Rate Range, Maximum | 8.73% | ||
Granite Falls Energy [Member] | Revolving Term Loan [Member] | |||
Line of Credit Facility [Line Items] | |||
Line of Credit Facility, Remaining Borrowing Capacity | $ 10,000,000 | $ 12,000,000 | |
Debt Instrument, Covenant Description | The credit facility is secured by substantially all assets of the Company. There are no savings account balance collateral requirements as part of this credit facility. | ||
Granite Falls Energy, LLC [Member] | |||
Line of Credit Facility [Line Items] | |||
Line of Credit Future Reduction, Amount | $ 2,000,000 | ||
Granite Falls Energy, LLC [Member] | Revolving Term Loan [Member] | |||
Line of Credit Facility [Line Items] | |||
Line of Credit Facility, Maximum Borrowing Capacity | $ 18,000,000 | ||
Line of Credit Facility, Interest Rate Description | "One Month LIBOR Index Rate," plus 3.05%. |
Debt Facilities - Estimated Ann
Debt Facilities - Estimated Annual Maturities (Details) - Heron Lake Bio-energy LLC [Member] | Apr. 30, 2016USD ($) |
Debt Instrument [Line Items] | |
Long-term Debt, Maturities, Repayments of Principal in Next Rolling Twelve Months | $ 519,404 |
Long-term Debt, Maturities, Repayments of Principal in Rolling Year Two | 444,123 |
Long-term Debt, Maturities, Repayments of Principal in Rolling Year Three | 322,980 |
Long-term Debt, Maturities, Repayments of Principal in Rolling Year Four | 306,706 |
Long-term Debt, Maturities, Repayments of Principal in Rolling Year Five | 326,798 |
Long-term Debt, Maturities, Repayments of Principal in Rolling Year Five | 5,134,533 |
Long-term Debt | $ 7,054,544 |
Leases (Details)
Leases (Details) - USD ($) | 6 Months Ended | |
Apr. 30, 2016 | Apr. 30, 2015 | |
Granite Falls Energy, LLC [Member] | Rail Cars [Member] | ||
Operating Leases, Rent Expense | $ 812,000 | $ 610,000 |
Heron Lake Bioenergy [Member] | ||
Operating Leases, Rent Expense | $ 710,000 | $ 528,000 |
Members' Equity (Details)
Members' Equity (Details) - USD ($) | 1 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Apr. 30, 2016 | Oct. 31, 2015 | |
Membership Units, Issued | 30,606 | 30,606 | ||
Membership Units, Outstanding | 30,606 | 30,606 | ||
Membership Units, Authorized | 30,606 | |||
Granite Falls Energy, LLC [Member] | ||||
Distribution Made to Membership, Cash Distribution Paid per Unit | $ 315 | $ 1,050 | ||
Distribution Made to Member or Limited Partner, Cash Distributions Paid | 9,641,000 | 32,136,000 | ||
Heron Lake Bio-energy LLC [Member] | ||||
Distribution Made to Member or Limited Partner, Cash Distributions Paid | $ 3,897,000 | $ 9,352,000 | ||
Distribution Made to Limited Liability Company (LLC) Member, Distributions Paid, Per Unit | $ 0.05 | $ 0.12 | ||
Heron Lake Bio-energy LLC [Member] | Noncontrolling Interest [Member] | ||||
Distribution Made to Member or Limited Partner, Cash Distributions Paid | $ 4,621,000 |
Commitments and Contingencies (
Commitments and Contingencies (Details) | 6 Months Ended |
Apr. 30, 2016USD ($)bu | |
Granite Falls Energy, LLC [Member] | Ethanol Contracts [Member] | |
Purchase Commitment, Excluding Long-term Commitment [Line Items] | |
Future Commitment, Dollar | $ 17,600,000 |
Revenue Concentration, Future Commitment | 45.00% |
Granite Falls Energy, LLC [Member] | Distillers Grains [Member] | |
Purchase Commitment, Excluding Long-term Commitment [Line Items] | |
Future Commitment, Dollar | $ 658,000 |
Granite Falls Energy, LLC [Member] | Grain Storage [Member] | |
Purchase Commitment, Excluding Long-term Commitment [Line Items] | |
Construction in Progress, Bushels | bu | 750,000 |
Construction in Progress, Gross | $ 2,700,000,000,000 |
Heron Lake Bioenergy [Member] | Corn Contracts [Member] | |
Purchase Commitment, Excluding Long-term Commitment [Line Items] | |
Inventory, Outside storage | bu | 6,970,000 |
Heron Lake Bioenergy [Member] | Ethanol Contracts [Member] | |
Purchase Commitment, Excluding Long-term Commitment [Line Items] | |
Future Commitment, Dollar | $ 17,400,000 |
Revenue Concentration, Future Commitment | 45.00% |
Heron Lake Bioenergy [Member] | Distillers Grains [Member] | |
Purchase Commitment, Excluding Long-term Commitment [Line Items] | |
Future Commitment, Dollar | $ 903,000 |
Heron Lake Bioenergy [Member] | Regenerative Thermal Oxidizer RTO [Member] | |
Purchase Commitment, Excluding Long-term Commitment [Line Items] | |
Purchase Obligation, Down Payment | 375,000 |
Purchase Obligation | 1,900,000,000,000 |
Granite Falls Energy [Member] | Corn Oil [Member] | |
Purchase Commitment, Excluding Long-term Commitment [Line Items] | |
Future Commitment, Dollar | 723,500 |
Heron Lake Bioenergy [Member] | Corn Oil [Member] | |
Purchase Commitment, Excluding Long-term Commitment [Line Items] | |
Future Commitment, Dollar | $ 930,000 |