Granite Falls Energy (GFGY) 10-Q 19 Mar 18 2018 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Jan. 31, 2018	Mar. 19, 2018
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, 2018
Document Fiscal Year Focus	2,018
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, 2018	Oct. 31, 2017
Current Assets
Cash	$ 6,638,645	$ 21,658,422
Restricted cash	547,132	75,189
Accounts receivable	7,442,899	7,622,601
Inventory	15,736,482	15,241,092
Commodity derivative instruments	36,525	244,294
Prepaid expenses and other current assets	702,650	361,340
Total current assets	31,104,333	45,202,938
Property, Plant and Equipment
Property and Equipment, net	70,414,786	72,271,013
Goodwill	1,372,473	1,372,473
Investment	7,500,000	7,500,000
Other Assets	733,569	743,106
Total Assets	111,125,161	127,089,530
Current Liabilities
Current maturities of long-term debt	333,015	432,183
Checks drawn in excess of bank balance	1,151,278
Accounts payable	4,833,477	7,535,468
Commodity derivative instruments	76,264	40,379
Accrued expenses	1,198,817	972,043
Total current liabilities	7,592,851	8,980,073
Long-Term Debt, less current portion	8,453,826	8,465,502
Commitments and Contingencies
Members' equity attributable to Granite Falls Energy, LLC consists of 30,606 units authorized, issued, and outstanding at both January 31, 2018 and October 31, 2017	73,271,176	83,998,672
Non-controlling interest	21,807,308	25,645,283
Total members' equity	95,078,484	109,643,955
Total Liabilities and Members’ Equity	$ 111,125,161	$ 127,089,530

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parenthetical) - shares	Jan. 31, 2018	Oct. 31, 2017
Condensed Consolidated Balance Sheets
Common Units Authorized	30,606	30,606
Common Units Issued	30,606	30,606
Common Units Outstanding	30,606	30,606

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations - USD ($)	3 Months Ended
	Jan. 31, 2018	Jan. 31, 2017
Condensed Consolidated Statements of Operations
Revenues	$ 52,993,499	$ 54,576,064
Cost of Goods Sold	49,988,507	47,731,157
Gross Profit	3,004,992	6,844,907
Operating Expenses	1,680,143	1,607,221
Operating Income	1,324,849	5,237,686
Other Income (Expense):
Other income, net	259,256	392,265
Interest income	46,473	454
Interest expense	(105,755)	(41,609)
Total other income, net	199,974	351,110
Net Income	1,524,823	5,588,796
Less: Net Income Attributable to Non-controlling Interest	(473,217)	(1,429,005)
Net Income Attributable to Granite Falls Energy, LLC	$ 1,051,606	$ 4,159,791
Weighted Average Units Outstanding - Basic and Diluted (in units)	30,606	30,606
Net Income Per Unit - Basic and Diluted (in dollars per unit)	$ 34.36	$ 135.91
Distributions Per Unit (in dollars per unit)	$ 385	$ 365

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Cash Flows - USD ($)	3 Months Ended
	Jan. 31, 2018	Jan. 31, 2017
Cash Flows from Operating Activities:
Net income	$ 1,524,823	$ 5,588,796
Adjustments to reconcile net income to net cash provided by operations:
Depreciation and amortization	2,284,340	2,492,791
Change in fair value of commodity derivative instruments	113,233	(383,860)
Gain on sale of assets	(24,815)	(45,000)
Changes in operating assets and liabilities:
Restricted cash	(471,943)
Commodity derivative instruments	130,421	842,875
Accounts receivable	179,702	2,302,376
Inventory	(495,390)	(271,086)
Prepaid expenses and other current assets	(341,310)	(71,998)
Accounts payable	(2,550,585)	(7,605,717)
Accrued expenses	226,774	164,537
Net Cash Provided by Operating Activities	575,250	3,013,714
Cash Flows from Investing Activities:
Payment for investment		(750,000)
Payments for capital expenditures	(569,982)	(385,554)
Proceeds from disposal of assets	24,815	45,000
Net Cash Used in Investing Activities	(545,167)	(1,090,554)
Cash Flows from Financing Activities:
Payments on long-term debt	(110,844)	(128,887)
Checks drawn in excess of bank balance	1,151,278	(1,230,005)
Distributions to non-controlling interests	(4,311,192)
Member distributions paid	(11,779,102)	(11,171,190)
Net Cash Used in Financing Activities	(15,049,860)	(12,530,082)
Net Decrease in Cash	(15,019,777)	(10,606,922)
Cash - Beginning of Period	21,658,422	13,797,857
Cash - End of Period	6,638,645	3,190,935
Cash paid during the period for:
Interest expense	105,755	41,609
Supplemental Disclosure of Noncash Investing and Financing Activities
Capital expenditures and construction in process included in accounts payable	$ 63,829	$ 175,891

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	3 Months Ended
	Jan. 31, 2018
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
SUMMARY OF SIGNIFICANT ACCOUNTING 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, 2018 consolidate the operating results and financial position of GFE, and its approximately 50.7% 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 49.3% 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 approximately 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 approximately 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 (“SEC”). 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, 2017, 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, inventory purchase and sale commitments, evaluation of railcar damages contingency, 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. 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. Ringneck is a South Dakota limited liability company that is currently constructing an 80 million gallon per year ethanol manufacturing plant in outside of Onida, South Dakota in Sully County. GFE’s investment is sufficient to secure the Company the right to appoint one director to the board of directors of Ringneck. GFE has appointed Steve Christensen, its CEO, to serve as its appointed director. 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. On August 2, 2017, following notice from Ringneck accepting GFE’s subscription and that payment of the balance of GFE’s subscription and promissory note was due, GFE borrowed $7.5 million under its credit facility with Project Hawkeye, LLC (“Project Hawkeye”) and paid $6,750,000 to Ringneck as payment for the remaining balance of GFE’s subscription. Project Hawkeye is an affiliate of Fagen, Inc., which is a member of GFE. See Note 6 below for the terms of GFE’s credit facility with Project Hawkeye. The investment will be 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 Condensed Consolidated Statements 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, 2018
RISKS AND UNCERTAINTIES
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. The Company’s 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 a risk management program used to protect against the price volatility of these commodities. Market fluctuations in the price of and demand for these products may have a significant adverse effect on the Company’s operations, profitability and the availability and adequacy of cash flow to meet the Company’s working capital requirements.

INVENTORY

INVENTORY	3 Months Ended
	Jan. 31, 2018
INVENTORY
INVENTORY	3. INVENTORY Inventories consist of the following: January 31, 2018 October 31, 2017 (unaudited) Raw materials $ 4,524,471 $ 4,488,923 Supplies 2,913,151 2,929,385 Work in process 1,318,638 1,281,292 Finished goods 6,980,222 6,541,492 Totals $ 15,736,482 $ 15,241,092 The Company performs a lower of cost or net realizable value analysis on inventory to determine if the net realizable 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, as a component of cost of goods sold, the Company recorded a loss on ethanol inventories of approximately $377,000 and $207,000 for the three months ended January 31, 2018 and 2017, respectively.

DERIVATIVE INSTRUMENTS

DERIVATIVE INSTRUMENTS	3 Months Ended
	Jan. 31, 2018
DERIVATIVE INSTRUMENTS
DERIVATIVE INSTRUMENTS	4. DERIVATIVE INSTRUMENTS As of January 31, 2018, the total notional amount of GFE’s outstanding corn derivative instruments was approximately 7,090,000 bushels, comprised of long corn positions on 2,070,000 bushels that were entered into to hedge forecasted ethanol sales through March 2018, and short corn positions on 5,020,000 bushels that were entered into to hedge forecasted corn purchases through December 2021. 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, 2018 , the total notional amount of HLBE’s outstanding corn derivative instruments was approximately 5,635,000 bushels, comprised of long corn positions on 1,995,000 bushels that were entered into to hedge forecasted ethanol sales through March 2018, and short corn positions on 3,640,000 bushels that were entered into to hedge forecasted corn purchases through December 2019. 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, 2018, HLBE had outstanding natural gas derivative instruments totaling approximately 40,000 MMBTUs entered into to hedge forecasted ethanol sales through February 2018. As of January 31, 2018, GFE had approximately $386,000 of cash collateral (restricted cash) related to derivatives held by a broker . As of January 31, 2018, HLBE had approximately $161,000 of cash collateral (restricted cash) related to derivatives held by a broker . The following tables provide details regarding the Company's derivative instruments at January 31, 2018, none of which were designated as hedging instruments: Consolidated Balance Sheet location Assets Liabilities Corn contracts - GFE Commodity derivative instruments $ — $ 70,000 Corn contracts - HLBE Commodity derivative instruments 5,025 — Ethanol contracts - HLBE Commodity derivative instruments 31,500 — Natural gas contracts - HLBE Commodity derivative instruments — 6,264 Totals $ 36,525 $ 76,264 As of October 31, 2017, the total notional amount of GFE’s outstanding corn derivative instruments was approximately 1,495,000 bushels, comprised of long corn positions on 200,000 bushels that were entered into to hedge forecasted ethanol sales through December 2017, and short corn positions on 1,295,000 bushels that were entered into to hedge forecasted corn purchases through December 2018. There may be offsetting positions that are not shown on a net basis that could lower the notional amount of positions outstanding. As of October 31, 2017, the total notional amount of GFE’s outstanding ethanol derivative instruments was approximately 420,000 gallons that were entered into to hedge forecasted ethanol sales through November 2017. As of October 31, 2017, GFE had approximately $75,000 cash collateral (restricted cash) and approximately $12,000 due to broker related to derivatives held by a broker, recorded as a component of accounts payable. As of October 31, 2017, the total notional amount of HLBE’s outstanding corn derivative instruments was approximately 1,120,000 bushels, comprised of long corn positions on 215,000 bushels that were entered into to hedge forecasted ethanol sales through December 2017, and short corn positions on 905,000 bushels that were entered into to hedge forecasted corn purchases through July 2018. There may be offsetting positions that are not shown on a net basis that could lower the notional amount of positions outstanding. As of October 31, 2017, HLBE had outstanding natural gas derivative instruments totaling 120,000 MMBTU entered into hedge forecasted natural gas purchases through February 2018. As of October 31, 2017, the total notional amount of HLBE’s outstanding ethanol derivative instruments was approximately 420,000 gallons that were entered into to hedge forecasted ethanol sales through November 2017 As of October 31, 2017, HLBE did not have any cash collateral (restricted cash) and approximately $12,000 due to broker related to derivatives held by a broker, recorded as a component of accounts payable. The following tables provide details regarding the Company's derivative instruments at October 31, 2017, none of which were designated as hedging instruments: Consolidated Balance Sheet location Assets Liabilities Corn contracts - GFE Commodity derivative instruments $ 102,650 $ — Corn contracts - HLBE Commodity derivative instruments 141,644 — Ethanol contracts - GFE Commodity derivative instruments — 12,749 Ethanol contracts - HLBE Commodity derivative instruments — 12,249 Natural gas contracts - HLBE Commodity derivative instruments — 15,381 Totals $ 244,294 $ 40,379 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: Consolidated Statement Three Months Ended January 31, of Operations Location 2018 2017 Corn contracts Cost of Goods Sold $ (265,068) $ (33,137) Ethanol contracts Revenues 139,497 416,997 Natural gas contracts Cost of Goods Sold 12,338 — Total gain (loss) $ (113,233) $ 383,860

FAIR VALUE

FAIR VALUE	3 Months Ended
	Jan. 31, 2018
FAIR VALUE
FAIR VALUE	5. FAIR VALUE The following table sets forth, by level, the Company assets that were accounted for at fair value on a recurring basis at January 31, 2018: Fair Value Measurement Using Quoted Prices Significant Other Significant Carrying Amount in in Active Markets Observable Inputs Unobservable Inputs Financial Asset: Consolidated Balance Sheet Fair Value (Level 1) (Level 2) (Level 3) Commodity Derivative Instruments - Corn $ 5,025 $ 5,025 $ 5,025 $ — $ — Commodity Derivative Instruments - Ethanol $ 31,500 $ 31,500 $ 31,500 $ — $ — Financial Liabilities: Commodity Derivative Instruments - Corn $ 70,000 $ 70,000 $ 70,000 $ — $ — Commodity Derivative Instruments - Natural Gas $ 6,264 $ 6,264 $ — $ 6,264 $ — The following table sets forth, by level, the Company assets that were accounted for at fair value on a recurring basis at October 31, 2017: Fair Value Measurement Using Quoted Prices Significant Other Significant Carrying Amount in in Active Markets Observable Inputs Unobservable Inputs Financial Asset: Consolidated Balance Sheet Fair Value (Level 1) (Level 2) (Level 3) Commodity Derivative Instruments - Corn $ 244,294 $ 244,294 $ 244,294 $ — $ — Financial Liabilities: Commodity Derivative Instruments - Ethanol $ 24,998 $ 24,998 $ 36,500 $ (11,502) $ — Commodity Derivative Instruments - Natural Gas $ 15,381 $ 15,381 $ — $ 15,381 $ — 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 and natural gas 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, 2018
DEBT FACILITIES
DEBT FACILITIES	6. DEBT FACILITIES Debt financing consists of the following: January 31, 2018 October 31, 2017 (unaudited) GRANITE FALLS ENERGY: Seasonal loan, see terms below. $ — $ — Term note payable to Project Hawkeye, see terms below. 7,500,000 7,500,000 HERON LAKE BIOENERGY: Revolving term loan, 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. 1,241,171 1,241,171 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. 45,670 56,514 Note payable to non-controlling interest member of Agrinatural. Interest is at One Month LIBOR plus 4.0%, which was approximately 5.58% and 5.24% at January 31, 2018 and October 31, 2017, respectively. The note was paid in full in January 2018. — 100,000 Totals 8,786,841 8,897,685 Less: amounts due within one year 333,015 432,183 Net long-term debt $ 8,453,826 $ 8,465,502 Granite Falls Energy Seasonal Revolving Loan GFE has a credit facility with a lender that includes a seasonal revolving loan, under which GFE may borrow, repay, and re-borrow up to the aggregate principal commitment of $6,000,000 until maturity. The seasonal revolving loan matures on October 1, 2018 unless a later date is agreed to by the administrative agent for the facility. There was no outstanding balance on the seasonal revolving loan at January 31, 2018 and October 31, 2017. Therefore, the aggregate principal amount available for borrowing by GFE under this seasonal revolving loan at January 31, 2018 and October 31, 2017 was $6,000,000. The interest rate on the seasonal revolving loan is based on the bank's One Month London Interbank Offered Rate (“LIBOR”) Index Rate, plus 2.75%, which equated to 4.33% and 3.99% at January 31, 2018 and October 31, 2017, respectively. The credit facility also requires GFE to comply with certain financial covenants, at various times calculated monthly, quarterly, or annually, including maintenance of certain financial ratios including minimum working capital, a debt service coverage ratio as defined by the credit facility, as well as a restriction of the payment of distributions. 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. 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. Project Hawkeye Loan On August 2, 2017, GFE entered into a credit facility with Project Hawkeye to finance its investment in Ringneck. Pursuant to this credit facility, GFE borrowed $7.5 million from Project Hawkeye using the Ringneck investment as collateral . The Project Hawkeye loan bears interest from date funds are first advanced on the loan through maturity, at a rate per annum equal to the sum of the One Month LIBOR Index Rate plus 3.05% per annum, with an interest rate floor of 3.55%, which equated to 4.63% and 4.29% at January 31, 2018 and October 31, 2017 respectively. The Project Hawkeye loan requires annual interest payments only for the first two years of the loan and monthly principal and interest payments for years three through nine based on a seven-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 August 2, 2026. 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 entered into in connection with the Project Hawkeye 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 Project Hawkeye will be to foreclose and seize all of GFE’s right, title and interest in its investment in Ringneck. Heron Lake BioEnergy Revolving Term Loan has a revolving term note payable with a lender under which HLBE can borrow, repay and re-borrow in an amount up to the original aggregate principal commitment at any time prior to maturity at March 1, 2022. The original aggregate principal commitment was $28,000,000, which reduced by $3,500,000 annually, starting March 1, 2015 and continuing each anniversary thereafter until maturity. In December 2017, HLBE and its lender orally agreed to reduce the aggregate principal commitment of the revolving term loan to $8,000,000. HLBE had no outstanding balance on the revolving term loan at January 1, 2018 and October 31, 2017. Therefore, the aggregate principal amount available to HLBE for borrowing at January 31, 2018 and October 31, 2017 was $8,000,000 and $17,500,000, respectively. In connection with the reduction in the aggregate principal commitment, the interest rate on the revolving term loan was reduced from 3.25% above the One-Month LIBOR Index rate to 2.85% above the One-Month LIBOR Index rate. The interest rate on this facility was 4.42% and 4.49% at January 31, 2018, and October 31, 2017, 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 part of the credit facility closing, HLBE entered into an Administrative Agency Agreement with CoBank, ACP (“CoBank”). CoBank purchased a participation interest in the revolving term loan and was appointed the administrative agent for the purpose of servicing the loan. As a result, CoBank will act as the agent for lender with respect to the credit facility. HLBE agreed to pay CoBank an annual fee of $2,500 for its services as administrative agent. Estimated annual maturities of debt at January 31, 2018, are as follows based on the most recent debt agreements: 2019 $ 333,015 2020 842,921 2021 1,389,227 2022 1,391,250 2023 1,071,428 Thereafter 3,759,000 Total debt $ 8,786,841

MEMBERS' EQUITY

MEMBERS' EQUITY	3 Months Ended
	Jan. 31, 2018
MEMBERS’ EQUITY
MEMBERS’ EQUITY	7. MEMBERS' EQUITY Granite Falls Energy 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, 2018 and October 31, 2017, GFE had 30,606 membership units authorized, issued, and outstanding. In December 2017, the Board of Governors of GFE declared a cash distribution of $385 per unit or approximately $11,783,000, for unit holders of record as of December 21, 2017. The distribution was paid in January 2018. 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. Heron Lake BioEnergy In December 2017, the Board of Governors of HLBE declared a cash distribution of $0.11 per unit, or approximately $8,573,000, for unit holders of record as of December 21, 2017. The distribution was paid in January 2018. At December 21, 2017, GFE owned 24,475,824 Class A membership units and 15,000,000 Class B units of HLBE, and received an aggregate distribution from HLBE of approximately $4,342,000. The remaining $4,231,000 was distributed by HLBE to the non-controlling interest.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	3 Months Ended
	Jan. 31, 2018
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES	8. COMMITMENTS AND CONTINGENCIES Corn Purchase Commitments At January 31, 2018, GFE had cash and basis contracts for forward corn contracts for approximately 4,096,000 bushels for delivery periods through February 2019. At January 31, 2018, HLBE had cash and basis contracts for forward corn purchase commitments for approximately 3,392,000 bushels for delivery periods through January 2019. Corn Purchases - Members GFE purchased corn from board members of approximately $437,000 and $0 for the three months ended January 31, 2018 and 2017, respectively. HLBE purchased corn from board members of approximately $4,455,000 and $3,025,000 for the three months ended January 31, 2018 and 2017, respectively. Ethanol Contracts At January 31, 2018, GFE had fixed and basis contracts to sell approximately $11,710,000 of ethanol for various delivery periods through March 2018. At January 31, 2018, HLBE had fixed and basis contracts to sell approximately $14,003,000 of ethanol for various delivery periods through March 2018. Distillers' Grain Contracts At January 31, 2018, GFE had forward contracts to sell approximately $993,000 of distillers' grain for various delivery periods through February 2018. At January 31, 2018, HLBE had forward contracts to sell approximately $1,640,000 of distillers' grains for delivery periods through March 2018. Corn Oil At January 31, 2018, GFE had forward contracts to sell approximately $260,000 of corn oil for various delivery periods through February 2018. At January 31, 2018, HLBE had forward contracts to sell approximately $466,000 of corn oil for various delivery periods through February 2018. Railcar Damages In accordance with certain railcar lease agreements, at expiration, the Company is required to return the railcars in good condition, less normal wear and tear. Primarily due to the ongoing maintenance and repair activities performed on its railcars, the Company has determined that no accrual for leased railcars is necessary and an estimate of the possible range of loss cannot be made.

SUMMARY OF SIGNIFICANT ACCOUN14

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	3 Months Ended
	Jan. 31, 2018
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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 Principles of Consolidation	Basis of Presentation and Principles of Consolidation The condensed consolidated unaudited financial statements as of January 31, 2018 consolidate the operating results and financial position of GFE, and its approximately 50.7% 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 49.3% 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 approximately 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 approximately 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 (“SEC”). 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, 2017, 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, inventory purchase and sale commitments, evaluation of railcar damages contingency, 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. 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	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. Ringneck is a South Dakota limited liability company that is currently constructing an 80 million gallon per year ethanol manufacturing plant in outside of Onida, South Dakota in Sully County. GFE’s investment is sufficient to secure the Company the right to appoint one director to the board of directors of Ringneck. GFE has appointed Steve Christensen, its CEO, to serve as its appointed director. 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. On August 2, 2017, following notice from Ringneck accepting GFE’s subscription and that payment of the balance of GFE’s subscription and promissory note was due, GFE borrowed $7.5 million under its credit facility with Project Hawkeye, LLC (“Project Hawkeye”) and paid $6,750,000 to Ringneck as payment for the remaining balance of GFE’s subscription. Project Hawkeye is an affiliate of Fagen, Inc., which is a member of GFE. See Note 6 below for the terms of GFE’s credit facility with Project Hawkeye. The investment will be 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 Condensed Consolidated Statements 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, 2018
INVENTORY
Schedule of Inventory	January 31, 2018 October 31, 2017 (unaudited) Raw materials $ 4,524,471 $ 4,488,923 Supplies 2,913,151 2,929,385 Work in process 1,318,638 1,281,292 Finished goods 6,980,222 6,541,492 Totals $ 15,736,482 $ 15,241,092

DERIVATIVE INSTRUMENTS (Tables)

DERIVATIVE INSTRUMENTS (Tables)	3 Months Ended
	Jan. 31, 2018
DERIVATIVE INSTRUMENTS
Schedule of derivative instruments in Statements of Financial Position	The following tables provide details regarding the Company's derivative instruments at January 31, 2018, none of which were designated as hedging instruments: Consolidated Balance Sheet location Assets Liabilities Corn contracts - GFE Commodity derivative instruments $ — $ 70,000 Corn contracts - HLBE Commodity derivative instruments 5,025 — Ethanol contracts - HLBE Commodity derivative instruments 31,500 — Natural gas contracts - HLBE Commodity derivative instruments — 6,264 Totals $ 36,525 $ 76,264 The following tables provide details regarding the Company's derivative instruments at October 31, 2017, none of which were designated as hedging instruments: Consolidated Balance Sheet location Assets Liabilities Corn contracts - GFE Commodity derivative instruments $ 102,650 $ — Corn contracts - HLBE Commodity derivative instruments 141,644 — Ethanol contracts - GFE Commodity derivative instruments — 12,749 Ethanol contracts - HLBE Commodity derivative instruments — 12,249 Natural gas contracts - HLBE Commodity derivative instruments — 15,381 Totals $ 244,294 $ 40,379
Schedule of gains (losses) from derivative instruments	Consolidated Statement Three Months Ended January 31, of Operations Location 2018 2017 Corn contracts Cost of Goods Sold $ (265,068) $ (33,137) Ethanol contracts Revenues 139,497 416,997 Natural gas contracts Cost of Goods Sold 12,338 — Total gain (loss) $ (113,233) $ 383,860

FAIR VALUE (Tables)

FAIR VALUE (Tables)	3 Months Ended
	Jan. 31, 2018
FAIR VALUE
Schedule of derivative assets and liabilities measured at fair value	The following table sets forth, by level, the Company assets that were accounted for at fair value on a recurring basis at January 31, 2018: Fair Value Measurement Using Quoted Prices Significant Other Significant Carrying Amount in in Active Markets Observable Inputs Unobservable Inputs Financial Asset: Consolidated Balance Sheet Fair Value (Level 1) (Level 2) (Level 3) Commodity Derivative Instruments - Corn $ 5,025 $ 5,025 $ 5,025 $ — $ — Commodity Derivative Instruments - Ethanol $ 31,500 $ 31,500 $ 31,500 $ — $ — Financial Liabilities: Commodity Derivative Instruments - Corn $ 70,000 $ 70,000 $ 70,000 $ — $ — Commodity Derivative Instruments - Natural Gas $ 6,264 $ 6,264 $ — $ 6,264 $ — The following table sets forth, by level, the Company assets that were accounted for at fair value on a recurring basis at October 31, 2017: Fair Value Measurement Using Quoted Prices Significant Other Significant Carrying Amount in in Active Markets Observable Inputs Unobservable Inputs Financial Asset: Consolidated Balance Sheet Fair Value (Level 1) (Level 2) (Level 3) Commodity Derivative Instruments - Corn $ 244,294 $ 244,294 $ 244,294 $ — $ — Financial Liabilities: Commodity Derivative Instruments - Ethanol $ 24,998 $ 24,998 $ 36,500 $ (11,502) $ — Commodity Derivative Instruments - Natural Gas $ 15,381 $ 15,381 $ — $ 15,381 $ —

DEBT FACILITIES (Tables)

DEBT FACILITIES (Tables)	3 Months Ended
	Jan. 31, 2018
DEBT FACILITIES
Schedule of debt financing	January 31, 2018 October 31, 2017 (unaudited) GRANITE FALLS ENERGY: Seasonal loan, see terms below. $ — $ — Term note payable to Project Hawkeye, see terms below. 7,500,000 7,500,000 HERON LAKE BIOENERGY: Revolving term loan, 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. 1,241,171 1,241,171 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. 45,670 56,514 Note payable to non-controlling interest member of Agrinatural. Interest is at One Month LIBOR plus 4.0%, which was approximately 5.58% and 5.24% at January 31, 2018 and October 31, 2017, respectively. The note was paid in full in January 2018. — 100,000 Totals 8,786,841 8,897,685 Less: amounts due within one year 333,015 432,183 Net long-term debt $ 8,453,826 $ 8,465,502
Schedule of annual maturities of debt	2019 $ 333,015 2020 842,921 2021 1,389,227 2022 1,391,250 2023 1,071,428 Thereafter 3,759,000 Total debt $ 8,786,841

SUMMARY OF SIGNIFICANT ACCOUN19

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) gal in Millions	3 Months Ended
	Jan. 31, 2018gal
Granite Falls Energy, LLC Excluding Heron Lake BioEnergy, LLC
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]
Plant production capacity	60
Production volume permitted	70
Heron Lake BioEnergy, LLC
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]
Plant production capacity	60
Production volume permitted	72.3
Heron Lake BioEnergy, LLC
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners	49.30%
Heron Lake BioEnergy, LLC | Project Viking, LLC
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]
Ownership percentage	50.70%
Project Viking, LLC
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]
Ownership percentage	100.00%
Agrinatural, LLC
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners	27.00%
Agrinatural, LLC | HLBE Pipeline Company, LLC
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]
Ownership percentage	73.00%

SUMMARY OF SIGNIFICANT ACCOUN20

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Other (Details)	3 Months Ended
	Jan. 31, 2018segment
Reportable Operating Segments
Number of reportable segments	1
Agrinatural, LLC | Maximum
Reportable Operating Segments
Revenues of subsidiary, percentage	1.00%

SUMMARY OF SIGNIFICANT ACCOUN21

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Investments (Details) $ / shares in Units, gal in Millions	Aug. 02, 2017USD ($)	Nov. 01, 2016USD ($)director$ / sharessharesgal	Jan. 31, 2017USD ($)
Investment
Payment for equity method investment			$ 750,000
Ringneck Energy and; Feed, LLC
Investment
Expected ethanol production capacity | gal		80
Number of directors Company has the right to appoint | director		1
Granite Falls Energy, LLC Excluding Heron Lake BioEnergy, LLC | Ringneck Energy and; Feed, LLC
Investment
Units purchased | shares		1,500
Price per unit (in dollars per unit) | $ / shares		$ 5,000
Total cost		$ 7,500,000
Payment for equity method investment	$ 6,750,000	750,000
Note payable		$ 6,750,000
Granite Falls Energy, LLC Excluding Heron Lake BioEnergy, LLC | Project Hawkeye Loan
Investment
Proceeds from long-term debt	7,500,000
Granite Falls Energy, LLC Excluding Heron Lake BioEnergy, LLC | Project Hawkeye Loan | Ringneck Energy and; Feed, LLC
Investment
Proceeds from long-term debt	$ 7,500,000

RISKS AND UNCERTAINTIES Narrati

RISKS AND UNCERTAINTIES Narrative (Details) - Product	3 Months Ended
	Jan. 31, 2018
Minimum | Total revenues | Ethanol
Concentration Risk [Line Items]
Concentration percentage	75.00%
Minimum | Cost of goods sold | Corn
Concentration Risk [Line Items]
Concentration percentage	65.00%
Maximum | Total revenues | Ethanol
Concentration Risk [Line Items]
Concentration percentage	90.00%
Maximum | Cost of goods sold | Corn
Concentration Risk [Line Items]
Concentration percentage	85.00%

INVENTORY (Details)

INVENTORY (Details) - USD ($)	3 Months Ended
	Jan. 31, 2018	Jan. 31, 2017	Oct. 31, 2017
Inventory
Raw materials	$ 4,524,471		$ 4,488,923
Supplies	2,913,151		2,929,385
Work in process	1,318,638		1,281,292
Finished goods	6,980,222		6,541,492
Totals	15,736,482		$ 15,241,092
Ethanol
Inventory
Loss on inventories	$ 377,000	$ 207,000

DERIVATIVE INSTRUMENTS - Assets

DERIVATIVE INSTRUMENTS - Assets And Liabilities (Details)	3 Months Ended	12 Months Ended
	Jan. 31, 2018USD ($)MMBTUbu	Oct. 31, 2017USD ($)MMBTUbugal
Derivatives, Fair Value [Line Items]
Cash collateral (restricted cash)	$ 547,132	$ 75,189
Financial Assets	36,525	244,294
Derivative liabilities	$ 76,264	$ 40,379
Granite Falls Energy, LLC Excluding Heron Lake BioEnergy, LLC | Corn Contracts
Derivatives, Fair Value [Line Items]
Total nonmonetary notional amount outstanding | bu	7,090,000	1,495,000
Granite Falls Energy, LLC Excluding Heron Lake BioEnergy, LLC | Ethanol Contracts
Derivatives, Fair Value [Line Items]
Total nonmonetary notional amount outstanding | gal		420,000
Granite Falls Energy, LLC Excluding Heron Lake BioEnergy, LLC | Derivatives held by a broker
Derivatives, Fair Value [Line Items]
Cash collateral (restricted cash)	$ 386,000	$ 75,000
Derivative liabilities		$ 12,000
Granite Falls Energy, LLC Excluding Heron Lake BioEnergy, LLC | Long/Purchase position | Corn Contracts
Derivatives, Fair Value [Line Items]
Total nonmonetary notional amount outstanding | bu	2,070,000	200,000
Granite Falls Energy, LLC Excluding Heron Lake BioEnergy, LLC | Short/Sale position | Corn Contracts
Derivatives, Fair Value [Line Items]
Total nonmonetary notional amount outstanding | bu	5,020,000	1,295,000
Heron Lake BioEnergy, LLC | Corn Contracts
Derivatives, Fair Value [Line Items]
Total nonmonetary notional amount outstanding | bu	5,635,000	1,120,000
Heron Lake BioEnergy, LLC | Ethanol Contracts
Derivatives, Fair Value [Line Items]
Total nonmonetary notional amount outstanding | gal		420,000
Heron Lake BioEnergy, LLC | Natural Gas Contracts
Derivatives, Fair Value [Line Items]
Total gas derivative nonmonetary notional amount outstanding | MMBTU	40,000	120,000
Heron Lake BioEnergy, LLC | Derivatives held by a broker
Derivatives, Fair Value [Line Items]
Cash collateral (restricted cash)	$ 161,000
Derivative liabilities		$ 12,000
Heron Lake BioEnergy, LLC | Long/Purchase position | Corn Contracts
Derivatives, Fair Value [Line Items]
Total nonmonetary notional amount outstanding | bu	1,995,000	215,000
Heron Lake BioEnergy, LLC | Short/Sale position | Corn Contracts
Derivatives, Fair Value [Line Items]
Total nonmonetary notional amount outstanding | bu	3,640,000	905,000
Not Designated as Hedging Instruments
Derivatives, Fair Value [Line Items]
Financial Assets	$ 36,525	$ 244,294
Derivative liabilities	76,264	40,379
Not Designated as Hedging Instruments | Granite Falls Energy, LLC Excluding Heron Lake BioEnergy, LLC | Corn Contracts
Derivatives, Fair Value [Line Items]
Financial Assets		102,650
Derivative liabilities	70,000
Not Designated as Hedging Instruments | Granite Falls Energy, LLC Excluding Heron Lake BioEnergy, LLC | Ethanol Contracts
Derivatives, Fair Value [Line Items]
Derivative liabilities		12,749
Not Designated as Hedging Instruments | Heron Lake BioEnergy, LLC | Corn Contracts
Derivatives, Fair Value [Line Items]
Financial Assets	5,025	141,644
Not Designated as Hedging Instruments | Heron Lake BioEnergy, LLC | Ethanol Contracts
Derivatives, Fair Value [Line Items]
Financial Assets	31,500
Derivative liabilities		12,249
Not Designated as Hedging Instruments | Heron Lake BioEnergy, LLC | Natural Gas Contracts
Derivatives, Fair Value [Line Items]
Derivative liabilities	$ 6,264	$ 15,381

DERIVATIVE INSTRUMENTS - Income

DERIVATIVE INSTRUMENTS - Income Statement (Details) - Not Designated as Hedging Instruments - USD ($)	3 Months Ended
	Jan. 31, 2018	Jan. 31, 2017
Derivative Instruments, Gain (Loss) [Line Items]
Gains (losses) on derivative instruments	$ (113,233)	$ 383,860
Cost of Goods Sold. | Corn Contracts
Derivative Instruments, Gain (Loss) [Line Items]
Gains (losses) on derivative instruments	(265,068)	(33,137)
Cost of Goods Sold. | Natural Gas Contracts
Derivative Instruments, Gain (Loss) [Line Items]
Gains (losses) on derivative instruments	12,338
Revenues | Ethanol Contracts
Derivative Instruments, Gain (Loss) [Line Items]
Gains (losses) on derivative instruments	$ 139,497	$ 416,997

FAIR VALUE (Details)

FAIR VALUE (Details) - USD ($)	Jan. 31, 2018	Oct. 31, 2017
Fair value
Financial Assets	$ 36,525	$ 244,294
Financial Liabilities	76,264	40,379
Corn Contracts | Fair Value, Measurements, Recurring | Carrying Amount
Fair value
Financial Assets	5,025	244,294
Financial Liabilities	70,000
Corn Contracts | Fair Value, Measurements, Recurring | Estimate of Fair Value Measurement
Fair value
Financial Assets	5,025	244,294
Financial Liabilities	70,000
Corn Contracts | Fair Value, Inputs, Level 1 | Fair Value, Measurements, Recurring | Estimate of Fair Value Measurement
Fair value
Financial Assets	5,025	244,294
Financial Liabilities	70,000
Ethanol Contracts | Fair Value, Measurements, Recurring | Carrying Amount
Fair value
Financial Assets	31,500
Financial Liabilities		24,998
Ethanol Contracts | Fair Value, Measurements, Recurring | Estimate of Fair Value Measurement
Fair value
Financial Assets	31,500
Financial Liabilities		24,998
Ethanol Contracts | Fair Value, Inputs, Level 1 | Fair Value, Measurements, Recurring | Estimate of Fair Value Measurement
Fair value
Financial Assets	31,500
Financial Liabilities		36,500
Ethanol Contracts | Fair Value, Inputs, Level 2 | Fair Value, Measurements, Recurring | Estimate of Fair Value Measurement
Fair value
Financial Liabilities		(11,502)
Natural Gas Contracts | Fair Value, Measurements, Recurring | Carrying Amount
Fair value
Financial Liabilities	6,264	15,381
Natural Gas Contracts | Fair Value, Measurements, Recurring | Estimate of Fair Value Measurement
Fair value
Financial Liabilities	6,264	15,381
Natural Gas Contracts | Fair Value, Inputs, Level 2 | Fair Value, Measurements, Recurring | Estimate of Fair Value Measurement
Fair value
Financial Liabilities	$ 6,264	$ 15,381

DEBT FACILITIES (Details)

DEBT FACILITIES (Details) - USD ($)	Aug. 02, 2017	Jan. 31, 2018	Oct. 31, 2017
Line of Credit Facility
Long-term Debt		$ 8,786,841	$ 8,897,685
Less: amounts due within one year		333,015	432,183
Net long term debt		$ 8,453,826	$ 8,465,502
Seasonal Revolving Loan | Granite Falls Energy, LLC Excluding Heron Lake BioEnergy, LLC
Line of Credit Facility
Interest rate (as a percent)		4.33%	3.99%
Assessments payable as part of water treatment agreement, with interest at 6.55%, due in 2021 | Heron Lake BioEnergy, LLC
Line of Credit Facility
Long-term Debt		$ 1,241,171	$ 1,241,171
Payment		$ 189,393	$ 189,393
Frequency of payment		semi-annual	semi-annual
Interest rate (as a percent)		6.55%	6.55%
Period of worth of debt		1 year	1 year
Deposit on debt service payments		$ 364,000	$ 364,000
Assessments payable as part of water supply agreement, with interest at 8.73%, due in 2019 | Heron Lake BioEnergy, LLC
Line of Credit Facility
Long-term Debt		45,670	56,514
Payment		$ 3,942	$ 3,942
Frequency of payment		monthly	monthly
Interest rate (as a percent)		8.73%	8.73%
Note payable to noncontrolling interest member of Agrinatural, Interest One Month LIBOR plus 4.0 % | Heron Lake BioEnergy, LLC
Line of Credit Facility
Long-term Debt			$ 100,000
Interest rate (as a percent)		5.58%	5.24%
Project Hawkeye Loan | Granite Falls Energy, LLC Excluding Heron Lake BioEnergy, LLC
Line of Credit Facility
Long-term Debt		$ 7,500,000	$ 7,500,000
Interest rate (as a percent)		4.63%	4.29%
One Month LIBOR | Seasonal Revolving Loan | Granite Falls Energy, LLC Excluding Heron Lake BioEnergy, LLC
Line of Credit Facility
Spread above variable interest rate		2.75%
One Month LIBOR | Note payable to noncontrolling interest member of Agrinatural, Interest One Month LIBOR plus 4.0 % | Heron Lake BioEnergy, LLC
Line of Credit Facility
Spread above variable interest rate		4.00%	4.00%
One Month LIBOR | Project Hawkeye Loan | Granite Falls Energy, LLC Excluding Heron Lake BioEnergy, LLC
Line of Credit Facility
Spread above variable interest rate	3.05%

DEBT FACILITIES - Granite Falls

DEBT FACILITIES - Granite Falls Energy And Heron Lake BioEnergy (Details) - USD ($)	Nov. 30, 2017	Aug. 02, 2017	Nov. 01, 2016	Mar. 01, 2015	Jan. 31, 2018	Jan. 31, 2018	Dec. 31, 2017	Oct. 31, 2017	Feb. 28, 2015
Line of Credit Facility
Savings collateral					$ 547,132	$ 547,132		$ 75,189
Seasonal Revolving Loan | Granite Falls Energy, LLC Excluding Heron Lake BioEnergy, LLC
Line of Credit Facility
Credit facility maximum					6,000,000	6,000,000
Amounts outstanding under the credit facility					0	0		0
Aggregate principal amount available for borrowing					$ 6,000,000	$ 6,000,000		$ 6,000,000
Interest rate (as a percent)					4.33%	4.33%		3.99%
Savings collateral					$ 0	$ 0
Revolving Term Loan | Heron Lake BioEnergy, LLC
Line of Credit Facility
Credit facility maximum							$ 8,000,000		$ 28,000,000
Amounts outstanding under the credit facility					0	0		$ 0
Aggregate principal amount available for borrowing					$ 8,000,000	$ 8,000,000		$ 17,500,000
Interest rate (as a percent)					4.42%	4.42%		4.49%
Line of credit future reduction amounts				$ 3,500,000
Line of credit unused commitment fee (as a percent)						0.50%
Project Hawkeye Loan | Granite Falls Energy, LLC Excluding Heron Lake BioEnergy, LLC
Line of Credit Facility
Interest rate (as a percent)					4.63%	4.63%		4.29%
Proceeds from long-term debt		$ 7,500,000
Interest rate floor (as a percent)		3.55%
Maximum period of interest payments		2 years
Debt instrument amortization period after first two years		7 years
CoBank | Heron Lake BioEnergy, LLC
Line of Credit Facility
Annual fee					$ 2,500	$ 2,500
One Month LIBOR | Seasonal Revolving Loan | Granite Falls Energy, LLC Excluding Heron Lake BioEnergy, LLC
Line of Credit Facility
Spread above variable interest rate						2.75%
One Month LIBOR | Revolving Term Loan | Heron Lake BioEnergy, LLC
Line of Credit Facility
Spread above variable interest rate	3.25%				2.85%
One Month LIBOR | Project Hawkeye Loan | Granite Falls Energy, LLC Excluding Heron Lake BioEnergy, LLC
Line of Credit Facility
Spread above variable interest rate		3.05%
Ringneck Energy and; Feed, LLC | Granite Falls Energy, LLC Excluding Heron Lake BioEnergy, LLC
Line of Credit Facility
Units purchased			1,500
Ringneck Energy and; Feed, LLC | Project Hawkeye Loan | Granite Falls Energy, LLC Excluding Heron Lake BioEnergy, LLC
Line of Credit Facility
Proceeds from long-term debt		$ 7,500,000
Ringneck Energy and; Feed, LLC | Project Hawkeye Loan | Granite Falls Energy, LLC Excluding Heron Lake BioEnergy, LLC | Equity securities
Line of Credit Facility
Units purchased		1,500

DEBT FACILITIES - Estimated Ann

DEBT FACILITIES - Estimated Annual Maturities (Details) - USD ($)	Jan. 31, 2018	Oct. 31, 2017
DEBT FACILITIES
2,019	$ 333,015
2,020	842,921
2,021	1,389,227
2,022	1,391,250
2,023	1,071,428
Thereafter	3,759,000
Long-term Debt	$ 8,786,841	$ 8,897,685

MEMBERS' EQUITY (Details)

MEMBERS' EQUITY (Details)	Dec. 21, 2017USD ($)shares	Dec. 31, 2017USD ($)$ / shares	Dec. 31, 2016USD ($)$ / shares	Jan. 31, 2018USD ($)item$ / sharesshares	Jan. 31, 2017USD ($)$ / shares	Oct. 31, 2017shares
Common Units Authorized				30,606		30,606
Common Units Issued				30,606		30,606
Common Units Outstanding				30,606		30,606
Distribution per unit declared (in dollars per unit) | $ / shares				$ 385	$ 365
Amount of distribution paid | $				$ 11,779,102	$ 11,171,190
Granite Falls Energy, LLC Excluding Heron Lake BioEnergy, LLC
Number of classes of membership units | item				1
Membership Units, Par value | $ / shares				$ 0
Common Units Issued				30,606		30,606
Distribution per unit declared (in dollars per unit) | $ / shares		$ 385	$ 365
Amount of distribution declared | $		$ 11,783,000	$ 11,171,000
Granite Falls Energy, LLC Excluding Heron Lake BioEnergy, LLC | Heron Lake BioEnergy, LLC | Affiliated Entity
Distributions received | $	$ 4,342,000
Heron Lake BioEnergy, LLC
Distribution per unit declared (in dollars per unit) | $ / shares		$ 0.11
Amount of distribution declared | $		$ 8,573,000
Heron Lake BioEnergy, LLC | Non-controlling Interest
Amount of distribution paid | $	$ 4,231,000
Heron Lake BioEnergy, LLC | Granite Falls Energy, LLC Excluding Heron Lake BioEnergy, LLC | Capital Unit, Class A
Common Units Outstanding	24,475,824
Heron Lake BioEnergy, LLC | Granite Falls Energy, LLC Excluding Heron Lake BioEnergy, LLC | Capital Unit, Class B
Common Units Outstanding	15,000,000

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Details)	3 Months Ended		12 Months Ended
	Jan. 31, 2018USD ($)bu	Jan. 31, 2017USD ($)	Oct. 31, 2017bugal
Loss Contingencies [Line Items]
Accrual for leased railcar damages	$ 0
Granite Falls Energy, LLC Excluding Heron Lake BioEnergy, LLC | Corn Forward Cash and Basis Contracts Purchase Commitments [Member]
Loss Contingencies [Line Items]
Quantity of commitment | bu	4,096,000
Granite Falls Energy, LLC Excluding Heron Lake BioEnergy, LLC | Corn Contracts
Loss Contingencies [Line Items]
Quantity of commitment | bu	7,090,000		1,495,000
Granite Falls Energy, LLC Excluding Heron Lake BioEnergy, LLC | Ethanol Contracts
Loss Contingencies [Line Items]
Quantity of commitment | gal			420,000
Granite Falls Energy, LLC Excluding Heron Lake BioEnergy, LLC | Board Members | Corn Contracts
Loss Contingencies [Line Items]
Amount of corn purchased	$ 437,000	$ 0
Granite Falls Energy, LLC Excluding Heron Lake BioEnergy, LLC | Short/Sale position | Corn Contracts
Loss Contingencies [Line Items]
Quantity of commitment | bu	5,020,000		1,295,000
Granite Falls Energy, LLC Excluding Heron Lake BioEnergy, LLC | Short/Sale position | Ethanol Contracts
Loss Contingencies [Line Items]
Value of commitment	$ 11,710,000
Granite Falls Energy, LLC Excluding Heron Lake BioEnergy, LLC | Short/Sale position | Distillers' Grains
Loss Contingencies [Line Items]
Value of commitment	993,000
Granite Falls Energy, LLC Excluding Heron Lake BioEnergy, LLC | Short/Sale position | Corn Oil
Loss Contingencies [Line Items]
Value of commitment	$ 260,000
Granite Falls Energy, LLC Excluding Heron Lake BioEnergy, LLC | Long/Purchase position | Corn Contracts
Loss Contingencies [Line Items]
Quantity of commitment | bu	2,070,000		200,000
Heron Lake BioEnergy, LLC | Corn Forward Cash and Basis Contracts Purchase Commitments [Member]
Loss Contingencies [Line Items]
Quantity of commitment | bu	3,392,000
Heron Lake BioEnergy, LLC | Corn Contracts
Loss Contingencies [Line Items]
Quantity of commitment | bu	5,635,000		1,120,000
Heron Lake BioEnergy, LLC | Ethanol Contracts
Loss Contingencies [Line Items]
Quantity of commitment | gal			420,000
Heron Lake BioEnergy, LLC | Board Members | Corn Contracts
Loss Contingencies [Line Items]
Amount of corn purchased	$ 4,455,000	$ 3,025,000
Heron Lake BioEnergy, LLC | Short/Sale position | Corn Contracts
Loss Contingencies [Line Items]
Quantity of commitment | bu	3,640,000		905,000
Heron Lake BioEnergy, LLC | Short/Sale position | Ethanol Contracts
Loss Contingencies [Line Items]
Value of commitment	$ 14,003,000
Heron Lake BioEnergy, LLC | Short/Sale position | Distillers' Grains
Loss Contingencies [Line Items]
Value of commitment	1,640,000
Heron Lake BioEnergy, LLC | Short/Sale position | Corn Oil
Loss Contingencies [Line Items]
Value of commitment	$ 466,000
Heron Lake BioEnergy, LLC | Long/Purchase position | Corn Contracts
Loss Contingencies [Line Items]
Quantity of commitment | bu	1,995,000		215,000