Granite Falls Energy (GFGY) 10-Q 17 Mar 17 2017 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information Document - shares	3 Months Ended
	Jan. 31, 2017	Mar. 17, 2017
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	Jan. 31, 2017
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q1
Amendment Flag	false
Entity Common Stock, Shares Outstanding		30,606
Entity Current Reporting Status	Yes

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($)	Jan. 31, 2017	Oct. 31, 2016
Current Assets
Cash	$ 3,190,935	$ 13,797,857
Accounts receivable	4,352,618	6,654,994
Inventory	18,612,499	18,341,413
Commodity derivative instruments	892,711	1,228,926
Prepaid expenses and other current assets	397,987	325,989
Total current assets	27,446,750	40,349,179
Property, Plant and Equipment
Property and Equipment, net	77,046,207	78,968,016
Goodwill	1,372,473	1,372,473
Investment	750,000
Other Assets	771,717	781,254
Total Assets	107,387,147	121,470,922
Current Liabilities
Current maturities of long-term debt	462,086	490,057
CHecks drawn in excess of bank balance	636,678	1,866,683
Accounts payable	3,523,335	5,624,840
Corn payable to FCE	29,790	5,358,111
Commodity derivative instruments	122,800
Accrued expenses	1,161,856	997,319
Total current liabilities	5,936,545	14,337,010
Long-term Debt, less current portion	1,292,753	1,393,669
Commitments and Contingencies
Members' equity attributable to Granite Falls Energy, LLC consists of 30,606 units authorized, issued, and outstanding at both January 31, 2017 and October 31, 2016	76,673,130	83,684,529
Non-controlling interest	23,484,719	22,055,714
Total members' equity	100,157,849	105,740,243
Total Liabilities and Members’ Equity	$ 107,387,147	$ 121,470,922

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parenthetical) - shares	Jan. 31, 2017	Oct. 31, 2016
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

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations - USD ($)	3 Months Ended
	Jan. 31, 2017	Jan. 31, 2016
Condensed Statements of Operations [Abstract]
Revenues	$ 54,576,064	$ 51,001,654
Cost of Goods Sold	47,731,157	49,568,777
Gross Profit	6,844,907	1,432,877
Operating Expenses	1,607,221	1,400,846
Operating Income	5,237,686	32,031
Other Income (Expense)
Other income, net	392,265	67,679
Interest income	454	2,799
Interest expense	(41,609)	(75,964)
Total other income (expense), net	351,110	(5,486)
Net Income	5,588,796	26,545
Less: Net Income Attributable to Non-controlling Interest	(1,429,005)	(15,019)
Net Income Attributable to Granite Falls Energy, LLC	$ 4,159,791	$ 11,526
Weighted Average Units Outstanding - Basic and Diluted	30,606	30,606
Net Income Per Unit - Basic and Diluted	$ 135.91	$ 0.38
Distributions Per Unit - Basic and Diluted	$ 365	$ 315

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Cash Flows - USD ($)	3 Months Ended
	Jan. 31, 2017	Jan. 31, 2016
Cash Flows from Operating Activities
Net income	$ 5,588,796	$ 26,545
Adjustments to reconcile net income to net cash provided by operations:
Depreciation and amortization	2,492,791	2,408,849
Change in fair value of commodity derivative instruments	(383,860)	(306,912)
Gain on sale of asset	(45,000)
Change in operating assets and liabilities
Restricted cash		(411,790)
Commodity derivative instruments	842,875	811,134
Accounts receivable	2,302,376	4,383,728
Inventory	(271,086)	(213,974)
Prepaid expenses and other current assets	(71,998)	(1,661,945)
Accounts payable	(7,605,717)	(1,669,322)
Accrued expenses	164,537	39,135
Net Cash Provided by Operating Activities	3,013,714	3,405,448
Cash Flows from Investing Activities
Purchase of investment	(750,000)
Payments for capital expenditures	(385,554)	(2,294,859)
Proceeds from sale of assets	45,000
Net Cash Used in Investing Activities	(1,090,554)	(2,294,859)
Cash Flows from Financing Activities
Proceeds from long-term debt		4,613,122
Payments on long-term debt	(128,887)	(3,721,574)
Proceeds (payments) from checks drawn in excess of bank balance	(1,230,005)	3,505,086
Distributions to non-controlling interests		(2,006,558)
Member distributions paid	(11,171,190)	(9,640,887)
Net Cash Used in Financing Activities	(12,530,082)	(7,250,811)
Net Decrease in Cash	(10,606,922)	(6,140,222)
Cash - Beginning of Period	13,797,857	12,696,536
Cash - End of Period	3,190,935	6,556,314
Cash paid during the period for:
Interest Expense	41,609	75,964
Supplemental Disclosure of Noncash Investing, Operating and Financing Activities
Capital expenditures and construction in process included in accounts payable	$ 175,891	$ 164,491

Summary of Significant Accounti

Summary of Significant Accounting Policies	3 Months Ended
	Jan. 31, 2017
Accounting Policies [Abstract]
Summary of Significant Account Policies	1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of Business Granite Falls Energy, LLC (“GFE”) is a Minnesota limited liability company currently producing fuel-grade ethanol, distillers' grains, and crude corn oil near Granite Falls, Minnesota and sells these products, pursuant to marketing agreements, throughout the continental United States and on the international market. GFE's plant has an approximate annual production capacity of 60 million gallons, but is currently permitted to produce up to 70 million gallons of undenatured ethanol on a twelve month rolling sum basis. Additionally, GFE owns a majority interest in Heron Lake BioEnergy, LLC (“HLBE”). 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. HLBE owns a majority interest in Agrinatural Gas, LLC (“Agrinatural”), which operates a natural gas pipeline that provides natural gas to HLBE's ethanol production facility and other customers. All references to “we”, “us”, “our”, and the “Company” collectively refer to GFE and its wholly-owned and majority-owned subsidiaries. Basis of Presentation and Principles of Consolidation The condensed consolidated unaudited financial statements as of January 31, 2017 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. 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 significant intercompany balances and transactions are eliminated in 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, 2016, 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. Reportable Operating Segments Accounting Standards Codification (“ASC”) 280, “Segment Reporting,” establishes the standards for reporting information about segments in financial statements. 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 in deciding how to allocate resources and in assessing performance. Therefore, in applying the criteria set forth in ASC 280, the Company determined that based on the nature of the products and production process and the expected financial results, the Company’s operations at GFE’s ethanol plant and HLBE’s plant, including the production and sale of ethanol and its co-products, are aggregated into one reporting segment. Additionally, the Company also realizes relatively immaterial revenue from natural gas pipeline operations at Agrinatural, HLBE’s majority owned subsidiary. Before and after accounting for intercompany eliminations, these revenues from Agrinatural’s represent less than less than 1% of our consolidated revenues and have little to no impact on the overall performance of the Company. Therefore, the Company does not separately review Agrinatural’s revenues, cost of sales or other operating performance information. Rather, the Company reviews Agrinatural’s natural gas pipeline financial data on a consolidated basis with the Company’s ethanol production operating segment. The Company believes that the presentation of separate operating performance information for Agrinatural’s natural gas pipeline operations would not provide meaningful information to a reader of the Company’s consolidated financial statements and would not achieve the basic principles and objectives of ASC 280. 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 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, which includes 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. 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. 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. Investment On November 1, 2016, GFE subscribed to purchase 1,500 capital units of Ringneck Energy & Feed, LLC (“Ringneck”) at a price of $5,000 per unit for a total of $7,500,000. GFE paid a down payment of $750,000 in connection with the subscription, and signed a promissory note for $6,750,000 for the remaining balance of the subscription. If Ringneck accepts GFE’s subscription, GFE will be required to pay Ringneck the entire amount due under the promissory note within 20 days of receiving notice from Ringneck that it is due. If GFE fails to pay the entire amount due, GFE will be charged 12% interest per year, and Ringneck may seek legal action to force GFE to pay. If Ringneck does not meet certain conditions of its offering or rejects GFE’s subscription, GFE expects that its promissory note will be cancelled and our down payment will be refunded to us. Ringneck is a South Dakota limited liability company that intends to build an 80 million gallon per year ethanol manufacturing plant in outside of Onida, South Dakota in Sully County. If Ringneck accepts our subscription, our investment is sufficient to secure the Company the right to appoint one director to the board of directors of Ringneck. The investment is accounted for by the equity method, under which the Company’s share of the net income of the investee is recognized as income in the Company’s Consolidated Statement of Operations and added to the investment account, and distributions received from the affiliates are treated as a reduction of the investment.

Risks and Uncertainties

Risks and Uncertainties	3 Months Ended
	Jan. 31, 2017
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 - 90% 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 23, 2016, the U.S. Environmental Protection Agency (the “EPA”) announced the final rule for 2017 Renewable Volume Obligation (“RVO”) requirements, which is set at 15.0 billion gallons for corn-based ethanol, which equates to the original requirements set by the RFS. Comparatively, the EPA established RVOs requirements for the RFS for calendar years 2014, 2015, and 2016 were below the original requirements set by the RFS. In January 2017, the Trump administration imposed a government-wide freeze on new and pending regulations, which included the 2017 RVOs that were originally intended to go into effect on February 10, 2017. Industry organizations such as the Renewable Fuels Association and Growth Energy believe this action is simply procedural with a new administration, and do not expect it to result in any substantive changes to the rule itself. Additionally, 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 and/or continued political uncertainty under the new administration regarding the RFS could result in a significant decrease in ethanol demand. 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, due to a decline in oil prices, ethanol traded at a premium to gasoline during much of the three months ended January 31, 2017, causing a disincentive for discretionary blending of ethanol. However, in January 2017, the oil and gasoline prices rose resulting in ethanol trading at a discount to gasoline since January 2017, which may encourage discretionary blending of ethanol beyond the required blend rate. Management anticipates that ethanol prices will continue to change in relation to changes in corn and energy prices. If corn, crude oil and gasoline prices decrease, that could have 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.

Inventory

Inventory	3 Months Ended
	Jan. 31, 2017
Inventory [Abstract]
Inventory	3. INVENTORY Inventories consist of the following: January 31, 2017 October 31, 2016 (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 $207,000 and $353,000 for the three months ended January 31, 2017 and 2016, respectively.

Derivative Instruments

Derivative Instruments	3 Months Ended
	Jan. 31, 2017
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative Instruments and Hedging Activities Disclosure [Text Block]	4. DERIVATIVE INSTRUMENTS As of January 31, 2017, the total notional amount of GFE’s outstanding corn derivative instruments was approximately 2,975,000 bushels, comprised of long corn positions on 1,800,000 bushels that were entered into to hedge forecasted ethanol sales through March 2017, and short corn positions on 1,175,000 bushels that were entered into to hedge forecasted corn purchases through December 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 January 31, 2017, the total notional amount of GFE’s outstanding ethanol derivative instruments was approximately 1,260,000 gallons that were entered into to hedge forecasted ethanol sales through March 2017. As of January 31, 2017, GFE did not have any cash collateral (restricted cash) related to margin requirements for commodity derivative instrument positions held by a broker. As of January 31, 2017, the total notional amount of HLBE’s outstanding corn derivative instruments was approximately 5,630,000 bushels, comprised of long corn positions on 3,250,000 bushels that were entered into to hedge forecasted ethanol sales through March 2017, and short corn positions on 2,380,000 bushels that were entered into to hedge forecasted corn purchases through December 2017. There may be offsetting positions that are not shown on a net basis that could lower the notional amount of positions outstanding. As of January 31, 2017, the total notional amount of HLBE’s outstanding ethanol derivative instruments was approximately 1,260,000 gallons that were entered into to hedge forecasted ethanol sales through March 2017. As of January 31, 2017, HLBE did not have any cash collateral (restricted cash) related to margin requirements for commodity derivative instrument positions held by a broker. The following tables provide details regarding the Company's derivative instruments at January 31, 2017, 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, 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 $ $ — At October 31, 2016, the Company did not have any cash collateral (restricted cash) related to margin requirements for commodity derivative instrument positions held by a broker. The following tables provide details regarding the gains (losses) from Company's derivative instruments in statements of operations, none of which are designated as hedging instruments: Statement of Three Months Ended January 31, Operations Location 2017 2016 Corn contracts Cost of Goods Sold $ $ Ethanol contracts Revenues Natural gas contracts Cost of Goods Sold — Total gain $ $

Fair Value

Fair Value	3 Months Ended
	Jan. 31, 2017
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 January 31, 2017: Fair Value Measurement Using Carrying Amount Quoted Prices Significant Other Significant in Balance Sheet in Active Markets Observable Inputs Unobservable Inputs Financial Asset: January 31, 2017 Fair Value (Level 1) (Level 2) (Level 3) Commodity Derivative Instruments - Ethanol $ $ $ $ $ — Financial Liabilities: Commodity Derivative Instruments - Corn $ $ $ — $ — The following table provides information on those derivative assets measured at fair value on a recurring basis at October 31, 2016: Fair Value Measurement Using Carrying Amount Quoted Prices Significant Other Significant in Balance Sheet in Active Markets Observable Inputs Unobservable Inputs Financial Asset: October 31, 2016 Fair Value (Level 1) (Level 2) (Level 3) Commodity Derivative Instruments - Corn $ $ $ $ — $ — Commodity Derivative Instruments - Ethanol $ $ $ $ — $ — 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. We determine the fair value of ethanol Level 2 instruments by model-based techniques in which all significant inputs are observable in the markets noted above.

Debt Facilities

Debt Facilities	3 Months Ended
	Jan. 31, 2017
Debt Disclosure [Abstract]
Debt Disclosure [Text Block]	6. DEBT FACILITIES Debt financing consists of the following: January 31, 2017 October 31, 2016 (unaudited) GRANITE FALLS ENERGY: Revolving term loan, see terms below. $ — $ — Term note payable to Fagen Energy, see terms below. — — HERON LAKE BIOENERGY: Revolving term note payable to lending institution, see terms below. — — 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. HLBE 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. 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. 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 HLBE. Note payable to non-controlling interest member of Agrinatural. Interest is at One Month LIBOR plus 4.0%, which was approximately 4.78% and 4.53% at January 31, 2017 and October 31, 2016, respectively. The note is considered due on demand with payments due at Agrinatural's Board of Managers' discretion. 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. However, the amount available for borrowing by GFE 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 January 31, 2017 and October 31, 2016. Therefore, the aggregate amount available for borrowing by GFE on this facility was $10,000,000 at January 31, 2017 and October 31, 2016. The amount available for borrowing under this facility was further reduced at March 1, 2017 to $8,000,000. The interest rate is based on the bank's “One Month LIBOR Index Rate”, plus 3.05%, which equated to 3.83% and 3.25% at January 31, 2017 and October 31, 2016, respectively. The credit facility also requires GFE to comply with certain financial covenants, including including restriction of the payment of dividends and maintenance of certain financial ratios including minimum working capital and a debt service coverage ratio as defined by the credit facility. As of January 31, 2017 and October 31, 2016, GFE was in compliance with these financial covenants and expects to be in compliance throughout fiscal 2017. The credit facility is secured by substantially all assets of GFE. There are no savings account balance collateral requirements as part of this credit facility. In connection with GFE’s subscription for investment in Ringneck in November 2016, GFE entered into a credit facility with Fagen Energy which allows GFE to borrow up to $7.5 million of variable-rate, amortizing non-recourse debt from Fagen Energy using the Ringneck investment as collateral. The Fagen Energy loan bears interest from date funds are first advanced on the loan through maturity, at a rate per annum equal to the sum of (x) the One Month LIBOR Index Rate plus (y) 3.05% per annum, with an interest rate floor of 3.55%. The Fagen Energy loan requires annual interest payments only for the first two years of the loan and monthly principal and interest payments for years 3 through 9 based on a 7-year amortization period. The monthly amortized payments will be re-amortized following any change in interest rate. The entire outstanding principal balance of the loan, plus any accrued and unpaid interest thereon, is due and payable in full on November 1, 2025. GFE is permitted to voluntarily prepay all or any portion of the outstanding balance of this loan at any time without premium or penalty. Pursuant to a pledge agreement and commercial security agreement entered into in connection with the Fagen Energy loan , GFE’s obligations are secured by all of its right, title, and interest in its investment in Ringneck, including the 1,500 units subscribed for by GFE. The loan is non-recourse to all of GFE’s other assets, meaning that in the event of default, the only remedy available to Fagen Energy will be to foreclose and seize all of GFE’s right, title and interest in its investment in Ringneck. GFE expects to use the proceeds of the loan to finance its balance of its investment in Ringneck. As of January 31, 2017 , there were no amounts outstanding under this credit facility. Heron Lake BioEnergy : HLBE has a revolving term note payable with a lender, under which HLBE could initially borrow, repay, and re-borrow in an amount up to $28,000,000 at any time prior to the March 1, 2022 maturity date. However , the amount available for borrowing by HLBE under this facility reduces by by $3,500,000 annually, beginning March 1, 2015 and continuing each anniversary thereafter until maturity. HLBE had no outstanding balance on the revolving term note payable at January 31, 2017, and October 31, 2016. Therefore, the aggregate principal amount available for borrowing by HLBE on this facility was $21,000,000 at January 31, 2017 and October 31, 2016. The amount available for borrowing under this facility was further reduced at March 1, 2017 to $17,500,000. 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, which was 4.03% and 3.45% at January 31, 2017, and October 31, 2016, respectively. HLBE may elect to enter into a fixed interest rate on this loan at various times throughout the term of the loan as provided in the loan agreements. HLBE also agreed to pay an unused commitment fee on the unused portion of the revolving term loan commitment at the rate of 0.50% per annum. The 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, including restriction of the payment of dividends, restrictions on loans and advances to Agrinatural and the 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 January 31, 2017 and October 31, 2016, HLBE was in compliance with these financial covenants and expects to be in compliance throughout fiscal 2017. 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. HLBE agreed to pay CoBank an annual fee of $2,500 as the agent for AgStar. In October 2003, HLBE entered into an industrial water supply development and distribution agreement with the City of Heron Lake, Jackson County, and Minnesota Soybean Processors. In consideration of this agreement, HLBE and Minnesota Soybean Processors are allocated equally the debt service on $735,000 in water revenue bonds that were issued by the City to support this project that mature in February 2019. The parties have agreed that, prior to the scheduled expiration of the agreement, they will negotiate in good faith to replace the agreement with a further agreement regarding the wells and related facilities. In May 2006, HLBE entered into an industrial water supply treatment agreement with the City of Heron Lake and Jackson County. Under this agreement, HLBE pays monthly installments over 24 months starting January 1, 2007 equal to one years' debt service on approximately $3.6 million in water revenue bonds, which will be returned to HLBE if any funds remain after final payment in full on the bonds and assuming HLBE complies with all payment obligations under the agreement. As of January 31, 2017 and October 31, 2016, there were a total of approximately $1,605,000 and $1,615,000, 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 January 31, 2017, are as follows based on the most recent debt agreements: 2018 $ 2019 2020 2021 2022 Total debt $

Leases

Leases	3 Months Ended
	Jan. 31, 2017
Leases [Abstract]
Leases	7. LEASES GFE leases equipment, primarily rail cars, under operating leases through December 2026. Rent expense for these leases was approximately $878,000 and $894,000 for the three months ended January 31, 2017 and 2016, respectively. HLBE leases equipment, primarily rail cars, under operating leases through January 2027. Rent expense for these leases was approximately $540,000 and $533,000 for the three months ended January 31, 2017 and 2016, respectively.

Members' Equity

Members' Equity	3 Months Ended
	Jan. 31, 2017
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 January 31, 2017 and October 31, 2016, GFE had 30,606 membership units authorized, issued, and outstanding. In December 2016, the Board of Governors of GFE declared a cash distribution of $365 per unit or approximately $11,171,000, for unit holders of record as of December 22, 2016. The distribution was paid in January 2017. In December 2015, the Board of Governors of GFE declared a cash distribution of $315 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 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. At December 17, 2015, GFE owned 39,420,949 Class A membership units and 15,000,000 Class B units of HLBE, and received an aggregate distribution from HLBE of $1,971,000. The remaining $1,926,000 was distributed by HLBE to the non-controlling interest.

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Jan. 31, 2017
Commitments and Contingencies [Abstract]
Commitments and Contingencies	9. COMMITMENTS AND CONTINGENCIES Corn Storage and Grain Handling Agreement and Purchase Commitments GFE has a corn storage and grain handling agreement with Farmers Cooperative Elevator Company (FCE), a member. Under the agreement, GFE agrees to purchase all of the corn needed for the operation of the plant from FCE. The price of the corn purchased will be the bid price the member establishes for the plant plus a set fee per bushel. On February 27, 2017, GFE and FCE executed an amendment to the corn storage and grain handling agreement with an effective date of February 21, 2017. Pursuant to the terms of the amendment, the parties agreed to amend their corn storage and grain handling agreement to accelerate the termination date of the agreement to midnight August 31, 2017. Additionally, GFE may begin posting bids for the purchase of corn beginning June 1, 2017 and thereafter, but may not accept delivery of corn at its Granite Falls, Minnesota plant until September 1, 2017. In exchange for the early termination, GFE agreed to pay an early termination fee to FCE of approximately $255,000 on or before August 31, 2017. Prior to the amendment, the termination date of the corn storage and grain handling agreement was set to expire on November 2017. At January 31, 2017, GFE had approximately 1,217,000 bushels of stored corn totaling approximately $3,898,000 with FCE, a related party, that is included in inventory . At January 31, 2017, HBLE had cash and basis contracts for forward corn purchase contracts for approximately 7,740,000 bushels for delivery periods through October 2017. Ethanol Contracts At January 31, 2017, GFE had fixed and basis contracts to sell approximately $13,040,000 of ethanol for various delivery periods through March 2017. At January 31, 2017, HLBE had fixed and basis contracts to sell approximately $12,779,000 of ethanol for various delivery periods through March 2017. Distillers' Grain Contracts At January 31, 2017, GFE had forward contracts to sell approximately $1,944,000 of distillers' grain for deliveries through March 2017. At January 31, 2017, HLBE had forward contracts to sell approximately $1,255,000 of distillers' grains for delivery through March 2017. Corn Oil At January 31, 2017, GFE had forward contracts to sell approximately $295,000 of corn oil for delivery through February 2017. At January 31, 2017, HLBE had forward contracts to sell approximately $304,000 of corn oil for delivery through February 2017.

Summary of Significant Accoun15

Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Jan. 31, 2017
Accounting Policies [Abstract]
Nature of Business	Nature of Business Granite Falls Energy, LLC (“GFE”) is a Minnesota limited liability company currently producing fuel-grade ethanol, distillers' grains, and crude corn oil near Granite Falls, Minnesota and sells these products, pursuant to marketing agreements, throughout the continental United States and on the international market. GFE's plant has an approximate annual production capacity of 60 million gallons, but is currently permitted to produce up to 70 million gallons of undenatured ethanol on a twelve month rolling sum basis. Additionally, GFE owns a majority interest in Heron Lake BioEnergy, LLC (“HLBE”). 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. HLBE owns a majority interest in Agrinatural Gas, LLC (“Agrinatural”), which operates a natural gas pipeline that provides natural gas to HLBE's ethanol production facility and other customers. All references to “we”, “us”, “our”, and the “Company” collectively refer to GFE and its wholly-owned and majority-owned subsidiaries.
Basis of Presentation and Significant Accounting Policies	Basis of Presentation and Principles of Consolidation The condensed consolidated unaudited financial statements as of January 31, 2017 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. 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 significant intercompany balances and transactions are eliminated in 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, 2016, 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.
Reportable Operating Segments	Reportable Operating Segments Accounting Standards Codification (“ASC”) 280, “Segment Reporting,” establishes the standards for reporting information about segments in financial statements. 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 in deciding how to allocate resources and in assessing performance. Therefore, in applying the criteria set forth in ASC 280, the Company determined that based on the nature of the products and production process and the expected financial results, the Company’s operations at GFE’s ethanol plant and HLBE’s plant, including the production and sale of ethanol and its co-products, are aggregated into one reporting segment. Additionally, the Company also realizes relatively immaterial revenue from natural gas pipeline operations at Agrinatural, HLBE’s majority owned subsidiary. Before and after accounting for intercompany eliminations, these revenues from Agrinatural’s represent less than less than 1% of our consolidated revenues and have little to no impact on the overall performance of the Company. Therefore, the Company does not separately review Agrinatural’s revenues, cost of sales or other operating performance information. Rather, the Company reviews Agrinatural’s natural gas pipeline financial data on a consolidated basis with the Company’s ethanol production operating segment. The Company believes that the presentation of separate operating performance information for Agrinatural’s natural gas pipeline operations would not provide meaningful information to a reader of the Company’s consolidated financial statements and would not achieve the basic principles and objectives of ASC 280.
Accounting Estimates	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 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, which includes 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	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.
Inventory	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	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. Investment On November 1, 2016, GFE subscribed to purchase 1,500 capital units of Ringneck Energy & Feed, LLC (“Ringneck”) at a price of $5,000 per unit for a total of $7,500,000. GFE paid a down payment of $750,000 in connection with the subscription, and signed a promissory note for $6,750,000 for the remaining balance of the subscription. If Ringneck accepts GFE’s subscription, GFE will be required to pay Ringneck the entire amount due under the promissory note within 20 days of receiving notice from Ringneck that it is due. If GFE fails to pay the entire amount due, GFE will be charged 12% interest per year, and Ringneck may seek legal action to force GFE to pay. If Ringneck does not meet certain conditions of its offering or rejects GFE’s subscription, GFE expects that its promissory note will be cancelled and our down payment will be refunded to us. Ringneck is a South Dakota limited liability company that intends to build an 80 million gallon per year ethanol manufacturing plant in outside of Onida, South Dakota in Sully County. If Ringneck accepts our subscription, our investment is sufficient to secure the Company the right to appoint one director to the board of directors of Ringneck. The investment is accounted for by the equity method, under which the Company’s share of the net income of the investee is recognized as income in the Company’s Consolidated Statement of Operations and added to the investment account, and distributions received from the affiliates are treated as a reduction of the investment.
Investment	Investment On November 1, 2016, GFE subscribed to purchase 1,500 capital units of Ringneck Energy & Feed, LLC (“Ringneck”) at a price of $5,000 per unit for a total of $7,500,000. GFE paid a down payment of $750,000 in connection with the subscription, and signed a promissory note for $6,750,000 for the remaining balance of the subscription. If Ringneck accepts GFE’s subscription, GFE will be required to pay Ringneck the entire amount due under the promissory note within 20 days of receiving notice from Ringneck that it is due. If GFE fails to pay the entire amount due, GFE will be charged 12% interest per year, and Ringneck may seek legal action to force GFE to pay. If Ringneck does not meet certain conditions of its offering or rejects GFE’s subscription, GFE expects that its promissory note will be cancelled and our down payment will be refunded to us. Ringneck is a South Dakota limited liability company that intends to build an 80 million gallon per year ethanol manufacturing plant in outside of Onida, South Dakota in Sully County. If Ringneck accepts our subscription, our investment is sufficient to secure the Company the right to appoint one director to the board of directors of Ringneck. The investment is accounted for by the equity method, under which the Company’s share of the net income of the investee is recognized as income in the Company’s Consolidated Statement of Operations and added to the investment account, and distributions received from the affiliates are treated as a reduction of the investment.

Inventory (Tables)

Inventory (Tables)	3 Months Ended
	Jan. 31, 2017
Inventory in Process [Abstract]
Schedule of Inventory, Current [Table Text Block]	January 31, 2017 October 31, 2016 (unaudited) Raw materials $ $ Supplies Work in process Finished goods Totals $ $

Derivative Instruments (Tables)

Derivative Instruments (Tables)	3 Months Ended
	Jan. 31, 2017
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 January 31, 2017, 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, 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 $ $ —
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance [Table Text Block]	The following tables provide details regarding the gains (losses) from Company's derivative instruments in statements of operations, none of which are designated as hedging instruments: Statement of Three Months Ended January 31, Operations Location 2017 2016 Corn contracts Cost of Goods Sold $ $ Ethanol contracts Revenues Natural gas contracts Cost of Goods Sold — Total gain $ $

Fair Value (Tables)

Fair Value (Tables)	3 Months Ended
	Jan. 31, 2017
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 January 31, 2017: Fair Value Measurement Using Carrying Amount Quoted Prices Significant Other Significant in Balance Sheet in Active Markets Observable Inputs Unobservable Inputs Financial Asset: January 31, 2017 Fair Value (Level 1) (Level 2) (Level 3) Commodity Derivative Instruments - Ethanol $ $ $ $ $ — Financial Liabilities: Commodity Derivative Instruments - Corn $ $ $ — $ — The following table provides information on those derivative assets measured at fair value on a recurring basis at October 31, 2016: Fair Value Measurement Using Carrying Amount Quoted Prices Significant Other Significant in Balance Sheet in Active Markets Observable Inputs Unobservable Inputs Financial Asset: October 31, 2016 Fair Value (Level 1) (Level 2) (Level 3) Commodity Derivative Instruments - Corn $ $ $ $ — $ — Commodity Derivative Instruments - Ethanol $ $ $ $ — $ —

Debt Facilities (Tables)

Debt Facilities (Tables)	3 Months Ended
	Jan. 31, 2017
Debt Disclosure [Abstract]
Schedule of Long-term Debt Instruments [Table Text Block]	January 31, 2017 October 31, 2016 (unaudited) GRANITE FALLS ENERGY: Revolving term loan, see terms below. $ — $ — Term note payable to Fagen Energy, see terms below. — — HERON LAKE BIOENERGY: Revolving term note payable to lending institution, see terms below. — — 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. HLBE 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. 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. 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 HLBE. Note payable to non-controlling interest member of Agrinatural. Interest is at One Month LIBOR plus 4.0%, which was approximately 4.78% and 4.53% at January 31, 2017 and October 31, 2016, respectively. The note is considered due on demand with payments due at Agrinatural's Board of Managers' discretion. 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 January 31, 2017, are as follows based on the most recent debt agreements: 2018 $ 2019 2020 2021 2022 Total debt $

Summary of Significant Accoun20

Summary of Significant Accounting Policies (Details) $ / shares in Units, gal in Millions	Nov. 01, 2016USD ($)$ / sharesshares	Jan. 31, 2017sharesgal	Jan. 31, 2016gal
Plant production capacity		60
Measurement, Rolling Twelve Months		twelve
Production (Actual)		70
Heron Lake BioEnergy, LLC [Member]
Plant production capacity		60
Production (Actual)		72.3
Equity Method Investment, Ownership Percentage		100.00%
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners		49.40%
Granite Falls Energy, LLC [Member]
Equity Method Investment, Ownership Percentage		50.60%
Agrinatural, LLC [Member]
Equity Method Investment, Ownership Percentage		73.00%
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners		27.00%
Ring-neck Energy & Feed, LLC [Member]
Investment
Down payment | $	$ 750,000
Promissory note | $	$ 6,750,000
Period of written notice of creditor for promissory note to become due	20 days
Interest rate if promissory note amount is not paid in full when due	12.00%
Expected ethanol production capacity			80
Capital Units [Member] | Ring-neck Energy & Feed, LLC [Member]
Investment
Subscribe to purchase capital units, in units | shares	1,500	1,500
Price per unit paid | $ / shares	$ 5,000
Total price | $	$ 7,500,000

Risks and Uncertainties Narrati

Risks and Uncertainties Narrative (Details) - gal gal in Billions	Nov. 23, 2016	Jan. 31, 2017
UNITED STATES
Concentration Risk [Line Items]
Expected ethanol production capacity	15
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		90.00%
Percent of Cost of Goods Sold		85.00%

Inventory (Details)

Inventory (Details) - USD ($)	3 Months Ended
	Jan. 31, 2017	Jan. 31, 2016	Oct. 31, 2016
Inventory [Abstract]
Raw materials	$ 7,349,648		$ 9,098,492
Supplies	2,625,071		2,755,958
Work in process	1,364,882		1,347,754
Finished goods	7,272,898		5,139,209
Total inventory, net	18,612,499		$ 18,341,413
Loss on ethanol inventories	$ 207,000	$ 353,000

Derivative Instrument - Asset A

Derivative Instrument - Asset And Liabilities (Details)	3 Months Ended
	Jan. 31, 2017USD ($)bugal	Oct. 31, 2016USD ($)
Derivatives, Fair Value [Line Items]
Cash collateral	$ 0
Derivative Assets, Current	892,711	$ 1,228,926
Derivative Liabilities, Current	$ 122,800
Corn Contracts [Member]
Derivatives, Fair Value [Line Items]
Total notional amount outstanding | bu	2,975,000
Corn Contracts [Member] | Long position
Derivatives, Fair Value [Line Items]
Total notional amount outstanding | bu	1,800,000
Corn Contracts [Member] | Short position
Derivatives, Fair Value [Line Items]
Total notional amount outstanding | bu	1,175,000
Ethanol Contracts [Member]
Derivatives, Fair Value [Line Items]
Total notional amount outstanding | gal	1,260,000
Granite Falls Energy, LLC [Member] | Corn Contracts [Member]
Derivatives, Fair Value [Line Items]
Derivative Assets, Current		63,050
Derivative Liabilities, Current	$ 116,719
Granite Falls Energy, LLC [Member] | Ethanol Contracts [Member]
Derivatives, Fair Value [Line Items]
Derivative Assets, Current	445,706	503,538
Heron Lake BioEnergy, LLC [Member]
Derivatives, Fair Value [Line Items]
Cash collateral	$ 0
Heron Lake BioEnergy, LLC [Member] | Corn Contracts [Member]
Derivatives, Fair Value [Line Items]
Total notional amount outstanding | bu	5,630,000
Derivative Assets, Current		388,525
Derivative Liabilities, Current	$ 6,081
Heron Lake BioEnergy, LLC [Member] | Corn Contracts [Member] | Long position
Derivatives, Fair Value [Line Items]
Total notional amount outstanding | bu	3,250,000
Heron Lake BioEnergy, LLC [Member] | Corn Contracts [Member] | Short position
Derivatives, Fair Value [Line Items]
Total notional amount outstanding | bu	2,380,000
Heron Lake BioEnergy, LLC [Member] | Ethanol Contracts [Member]
Derivatives, Fair Value [Line Items]
Total notional amount outstanding | gal	1,260,000
Derivative Assets, Current	$ 447,005	$ 273,813

Derivative Instrument - Income

Derivative Instrument - Income Statement (Details) - USD ($)	3 Months Ended
	Jan. 31, 2017	Jan. 31, 2016
Derivative Instruments, Gain (Loss) [Line Items]
Derivative Instruments, Gain (Loss) Recognized in Income, Net	$ 383,860	$ 306,912
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	(33,137)	195,998
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	$ 416,997	$ 78,556

Fair Value (Details)

Fair Value (Details) - Fair Value, Measurements, Recurring [Member] - USD ($)	Jan. 31, 2017	Oct. 31, 2016
Corn Contracts [Member] | Carrying (Reported) Amount, Fair Value Disclosure [Member]
Derivative [Line Items]
Derivative Asset		$ 451,575
Derivative Liabilities	$ 122,800
Corn Contracts [Member] | Fair Value, Inputs, Level 1 [Member]
Derivative [Line Items]
Derivative Asset		451,575
Derivative Liabilities	122,800
Ethanol Contracts [Member] | Carrying (Reported) Amount, Fair Value Disclosure [Member]
Derivative [Line Items]
Derivative Asset	892,711	777,351
Ethanol Contracts [Member] | Fair Value, Inputs, Level 1 [Member]
Derivative [Line Items]
Derivative Asset	511,825	$ 777,351
Ethanol Contracts [Member] | Fair Value, Inputs, Level 2 [Member]
Derivative [Line Items]
Derivative Asset	$ 380,886

Debt Facilities - Granite Falls

Debt Facilities - Granite Falls Energy And Heron Lake BioEnergy (Details) - USD ($)	Nov. 01, 2016	Jan. 31, 2017	Mar. 01, 2017	Oct. 31, 2016
Line of Credit Facility [Line Items]
Long-term Debt		$ 1,754,839
Less: amounts due within one year		462,086		$ 490,057
Net long term debt		$ 1,292,753		1,393,669
Assessments payable as part of water supply agreement, with interest at 8.73%, due in 2019
Line of Credit Facility [Line Items]
Debt Instrument, Interest Rate, Stated Percentage		8.73%
Long-term Debt		$ 87,862		97,930
Semi-annual payment		$ 3,942
Note payable to electrical company, due September 2017
Line of Credit Facility [Line Items]
Debt Instrument, Interest Rate, Stated Percentage		0.00%
Long-term Debt		$ 50,000		68,750
Maintenance fee (as a percent)		1.00%
Monthly payment		$ 6,250
Note payable to noncontrolling interest member of Agrinatural, Interest One Month LIBOR plus 4.0 %
Line of Credit Facility [Line Items]
Debt Instrument, Interest Rate, Stated Percentage		4.00%
Long-term Debt		$ 100,000		200,000
Heron Lake BioEnergy, LLC [Member]
Line of Credit Facility [Line Items]
Long-term Debt		1,754,839		1,883,726
Less: amounts due within one year		462,086		490,057
Net long term debt		1,292,753		1,393,669
Heron Lake BioEnergy, LLC [Member] | Revolving Term Loan [Member]
Line of Credit Facility [Line Items]
Line of Credit Facility, Amount Outstanding		0		0
Line of Credit Facility, Remaining Borrowing Capacity		21,000,000		21,000,000
Debt Instrument, Fee Amount		2,500
Long-term Debt		$ 28,000,000
Heron Lake BioEnergy, LLC [Member] | Revolving Term Loan [Member] | Subsequent Event [Member]
Line of Credit Facility [Line Items]
Line of Credit Facility, Remaining Borrowing Capacity			$ 17,500,000
Heron Lake BioEnergy, LLC [Member] | Assessments payable as part of water treatment agreement, with interest at 6.55%, due in 2021
Line of Credit Facility [Line Items]
Debt Instrument, Interest Rate, Stated Percentage		6.55%
Long-term Debt		$ 1,516,977		1,517,046
Semi-annual payment		$ 189,393
Period of worth of debt		1 year
Deposit on debt service payments		$ 364,000
Ring-neck Energy & Feed, LLC [Member]
Line of Credit Facility [Line Items]
Down payment	$ 750,000
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, Amount Outstanding		0		$ 0
Line of Credit Facility, Maximum Borrowing Capacity		18,000,000
Line of Credit Facility, Remaining Borrowing Capacity		$ 10,000,000
Debt Instrument, Covenant Description		The credit facility is secured by substantially all assets of GFE. There are no savings account balance collateral requirements as part of this credit facility.
Granite Falls Energy, LLC [Member] | Revolving Term Loan [Member] | Subsequent Event [Member]
Line of Credit Facility [Line Items]
Line of Credit Facility, Remaining Borrowing Capacity			$ 8,000,000
Heron Lake BioEnergy, LLC [Member] | Revolving Term Loan [Member]
Line of Credit Facility [Line Items]
Line of Credit Future Reduction, Amount		$ 3,500,000
Maximum [Member] | Granite Falls Energy, LLC [Member]
Line of Credit Facility [Line Items]
Debt Instrument, Interest Rate, Effective Percentage		3.83%		3.25%
Debt Instrument, Basis Spread on Variable Rate		3.05%
Fagen Energy, LLC Credit Facility [Member]
Line of Credit Facility [Line Items]
Line of Credit Facility, Amount Outstanding		$ 0
Down payment		$ 7,500,000
Maximum period of interest payments		2 years
Debt instrument amortization period after first two years		7 years
Credit facility terms		The Fagen Energy loan  requires annual interest payments only for the first two years of the loan and monthly principal and interest payments for years 3 through 9 based on a 7-year amortization period.  The monthly amortized payments will be re-amortized following any change in interest rate. The entire outstanding principal balance of the loan, plus any accrued and unpaid interest thereon, is due and payable in full on November 1, 2025. GFE is permitted to voluntarily prepay all or any portion of the outstanding balance of this loan at any time without premium or penalty.
LIBOR [Member] | Fagen Energy, LLC Credit Facility [Member]
Line of Credit Facility [Line Items]
Debt instrument, period of moving average on variable rate		1 month
Debt Instrument, Basis Spread on Variable Rate		3.05%
LIBOR [Member] | Fagen Energy, LLC Credit Facility [Member] | Minimum [Member]
Line of Credit Facility [Line Items]
Debt Instrument, Interest Rate, Stated Percentage		3.55%
Capital Units [Member] | Ring-neck Energy & Feed, LLC [Member]
Line of Credit Facility [Line Items]
Subsidiary or Equity Method Investee, Cumulative Number of Shares Issued for All Transactions	1,500	1,500

Debt Facilities - Estimated Ann

Debt Facilities - Estimated Annual Maturities (Details)	Jan. 31, 2017USD ($)
Debt Disclosure [Abstract]
Long-term Debt, Maturities, Repayments of Principal in Next Rolling Twelve Months	$ 462,086
Long-term Debt, Maturities, Repayments of Principal in Rolling Year Two	333,015
Long-term Debt, Maturities, Repayments of Principal in Rolling Year Three	307,467
Long-term Debt, Maturities, Repayments of Principal in Rolling Year Four	326,798
Long-term Debt, Maturities, Repayments of Principal in Rolling Year Five	325,473
Long-term Debt	$ 1,754,839

Debt Facilities - Long-Term Deb

Debt Facilities - Long-Term Debt (Details) - Heron Lake BioEnergy, LLC [Member] - USD ($)	3 Months Ended	12 Months Ended
	Jan. 31, 2017	Oct. 31, 2016
Revolving Term Loan [Member]
Line of Credit Facility, Amount Outstanding	$ 0	$ 0
CoBank [Member] | Revolving Term Loan [Member]
Debt Instrument, Basis Spread on Variable Rate	3.25%
Debt Instrument, Interest Rate During Period	4.03%	3.45%
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage	0.50%
City/County Jurisdiction [Member]
Line of Credit Facility, Amount Outstanding	$ 1,605,000	$ 1,615,000
City/County Jurisdiction [Member] | Water Treatment Plant [Member]
Line of Credit Facility, Maximum Borrowing Capacity	3,600,000
Debt Instrument, Face Amount	$ 735,000
Minimum [Member] | City/County Jurisdiction [Member] | Water Treatment Plant [Member]
Debt Instrument, Interest Rate, Stated Percentage	0.50%
Maximum [Member] | City/County Jurisdiction [Member]
Debt Instrument, Interest Rate, Stated Percentage	8.73%

Leases (Details)

Leases (Details) - USD ($)	3 Months Ended
	Jan. 31, 2017	Jan. 31, 2016
Granite Falls Energy, LLC [Member] | Rail Cars [Member]
Operating Leases, Rent Expense	$ 878,000	$ 894,000
Heron Lake BioEnergy, LLC [Member]
Operating Leases, Rent Expense	$ 540,000	$ 533,000

Members' Equity (Details)

Members' Equity (Details) - USD ($)	Dec. 17, 2015	Jan. 31, 2017	Jan. 31, 2016	Jan. 31, 2017	Oct. 31, 2016
Membership Units, Authorized		30,606		30,606
Membership Units, Issued		30,606		30,606	30,606
Membership Units, Outstanding		30,606		30,606	30,606
Granite Falls Energy, LLC [Member]
Distribution Made to Membership, Cash Distribution Paid per Unit				$ 365	$ 315
Distribution Made to Member or Limited Partner, Cash Distributions Paid		$ 11,171,000			$ 9,641,000
Heron Lake BioEnergy, LLC [Member]
Distribution Made to Member or Limited Partner, Cash Distributions Paid			$ 3,897,000
Distributions received	$ 1,971,000
Distribution Made to Limited Liability Company (LLC) Member, Distributions Paid, Per Unit			$ 0.05
Heron Lake BioEnergy, LLC [Member] | Noncontrolling Interest [Member]
Distribution Made to Member or Limited Partner, Cash Distributions Paid	$ 1,926,000		$ 2,007,000
Heron Lake BioEnergy, LLC [Member] | Capital Unit, Class A [Member]
Membership Units, Issued	39,420,949
Heron Lake BioEnergy, LLC [Member] | Capital Unit, Class B [Member]
Membership Units, Issued	15,000,000

Commitments and Contingencies (

Commitments and Contingencies (Details)	3 Months Ended
	Jan. 31, 2017USD ($)bu
Distillers' Grains [Member]
Purchase Commitment, Excluding Long-term Commitment [Line Items]
Future Commitment, Dollar	$ 1,944,000
Granite Falls Energy, LLC [Member]
Purchase Commitment, Excluding Long-term Commitment [Line Items]
Fees and Commissions	255,000
Granite Falls Energy, LLC [Member] | Corn Contracts [Member]
Purchase Commitment, Excluding Long-term Commitment [Line Items]
Inventory Dollars, Outside Storage	$ 3,898,000
Inventory, Outside storage | bu	1,217,000
Granite Falls Energy, LLC [Member] | Corn Oil [Member]
Purchase Commitment, Excluding Long-term Commitment [Line Items]
Future Commitment, Dollar	$ 295,000
Granite Falls Energy, LLC [Member] | Ethanol Contracts [Member]
Purchase Commitment, Excluding Long-term Commitment [Line Items]
Future Commitment, Dollar	$ 13,040,000
Heron Lake BioEnergy, LLC [Member] | Corn Contracts [Member]
Purchase Commitment, Excluding Long-term Commitment [Line Items]
Inventory, Outside storage | bu	7,740,000
Heron Lake BioEnergy, LLC [Member] | Corn Oil [Member]
Purchase Commitment, Excluding Long-term Commitment [Line Items]
Future Commitment, Dollar	$ 304,000
Heron Lake BioEnergy, LLC [Member] | Ethanol Contracts [Member]
Purchase Commitment, Excluding Long-term Commitment [Line Items]
Future Commitment, Dollar	12,779,000
Heron Lake BioEnergy, LLC [Member] | Distillers' Grains [Member]
Purchase Commitment, Excluding Long-term Commitment [Line Items]
Future Commitment, Dollar	$ 1,255,000