Granite Falls Energy (GFGY) 10-Q 18 Mar 19 2019 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Jan. 31, 2019	Mar. 18, 2019
Document and Entity Information [Abstract]
Entity Registrant Name	Granite Falls Energy, LLC
Entity Central Index Key	0001181749
Current Fiscal Year End Date	--10-31
Entity Filer Category	Non-accelerated Filer
Document Type	10-Q
Document Period End Date	Jan. 31, 2019
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q1
Amendment Flag	false
Entity Common Stock, Shares Outstanding		30,606
Entity Current Reporting Status	Yes
Entity Small Business	false
Entity Emerging Growth Company	false

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($)	Jan. 31, 2019	Oct. 31, 2018
Current Assets
Cash	$ 6,902,900	$ 14,901,091
Restricted cash	290,209
Accounts receivable	5,713,879	7,325,203
Inventory	14,832,447	14,916,809
Commodity derivative instruments	216,250	957,938
Prepaid expenses and other current assets	1,045,500	506,926
Total current assets	29,001,185	38,607,967
Property, Plant and Equipment
Property and Equipment, net	64,628,169	66,675,671
Goodwill	1,372,473	1,372,473
Investments	9,500,000	9,500,000
Other Assets	695,421	704,958
Total Assets	105,197,248	116,861,069
Current Liabilities
Current maturities of long-term debt	849,769	659,791
Accounts payable	4,205,417	10,033,168
Commodity derivative instruments		50,360
Accrued expenses	1,350,973	1,388,293
Total current liabilities	6,406,159	12,131,612
Long-Term Debt, less current portion	7,601,669	7,799,410
Commitments and Contingencies
Members' equity attributable to Granite Falls Energy, LLC consists of 30,606 units authorized, issued, and outstanding at both January 31, 2019 and October 31, 2018	70,310,280	75,083,782
Non-controlling interest	20,879,140	21,846,265
Total members' equity	91,189,420	96,930,047
Total Liabilities and Members’ Equity	$ 105,197,248	$ 116,861,069

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - shares	Jan. 31, 2019	Oct. 31, 2018
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, 2019	Jan. 31, 2018
Condensed Consolidated Statements of Operations
Revenues	$ 49,375,097	$ 52,993,499
Cost of Goods Sold	52,110,622	49,988,507
Gross Profit (Loss)	(2,735,525)	3,004,992
Operating Expenses	1,770,173	1,680,143
Operating Income (Loss)	(4,505,698)	1,324,849
Other Income (Expense):
Other income, net	1,459	259,256
Interest income	73,275	46,473
Interest expense	(113,663)	(105,755)
Total other income (expense), net	(38,929)	199,974
Net Income (Loss)	(4,544,627)	1,524,823
Less: Net (Income) Loss Attributable to Non-controlling Interest	967,125	(473,217)
Net Income (Loss) Attributable to Granite Falls Energy, LLC	$ (3,577,502)	$ 1,051,606
Weighted Average Units Outstanding - Basic and Diluted (in units)	30,606	30,606
Net Income (Loss) Per Unit - Basic and Diluted	$ (116.89)	$ 34.36
Distributions Per Unit (in dollars per unit)	$ 40	$ 385

Condensed Consolidated Statem_2

Condensed Consolidated Statement of Changes in Members' Equity - USD ($)	Members' Equity attributable to Granite Falls Energy, LLC	Non-controlling Interest	Total
Balance - at Oct. 31, 2017	$ 83,998,672	$ 25,645,283	$ 109,643,955
Changes in Members' Equity
Member distribution	(11,779,102)	(4,311,192)	(16,090,294)
Net income (loss) attributable to non-controlling interest		473,217	473,217
Net income (loss) attributable to Granite Falls Energy, LLC	1,051,606		1,051,606
Balance - at Jan. 31, 2018	73,271,176	21,807,308	95,078,484
Balance - at Oct. 31, 2018	75,083,782	21,846,265	96,930,047
Changes in Members' Equity
Member distribution	(1,196,000)		(1,196,000)
Net income (loss) attributable to non-controlling interest		(967,125)	(967,125)
Net income (loss) attributable to Granite Falls Energy, LLC	(3,577,502)		(3,577,502)
Balance - at Jan. 31, 2019	$ 70,310,280	$ 20,879,140	$ 91,189,420

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Cash Flows - USD ($)	3 Months Ended
	Jan. 31, 2019	Jan. 31, 2018
Cash Flows from Operating Activities:
Net income (loss)	$ (4,544,627)	$ 1,524,823
Adjustments to reconcile net income (loss) to net cash provided by (used in) operations:
Depreciation and amortization	2,351,722	2,284,340
Change in fair value of commodity derivative instruments	(44,228)	113,233
Gain on sale of assets		(24,815)
Changes in operating assets and liabilities:
Commodity derivative instruments	735,556	130,421
Accounts receivable	1,611,324	179,702
Inventory	84,362	(495,390)
Prepaid expenses and other current assets	(538,574)	(341,310)
Accounts payable	(5,789,620)	(2,550,585)
Accrued expenses	(37,320)	226,774
Net Cash Provided by (Used in) Operating Activities	(6,171,405)	1,047,193
Cash Flows from Investing Activities:
Payments for capital expenditures	(332,814)	(569,982)
Proceeds from disposal of assets		24,815
Net Cash Used in Investing Activities	(332,814)	(545,167)
Cash Flows from Financing Activities:
Payments on long-term debt	(7,763)	(110,844)
Checks drawn in excess of bank balance		1,151,278
Distributions to non-controlling interests		(4,311,192)
Member distributions paid	(1,196,000)	(11,779,102)
Net Cash Used in Financing Activities	(1,203,763)	(15,049,860)
Net Decrease in Cash and Restricted Cash	(7,707,982)	(14,547,834)
Cash and Restricted Cash - Beginning of Period	14,901,091	21,733,611
Cash and Restricted Cash - End of Period	7,193,109	7,185,777
Cash paid during the period for:
Interest expense	113,663	105,755
Supplemental Disclosure of Non-Cash Investing and Financing Activities
Capital expenditures and construction in process included in accounts payable	$ 18,291	$ 63,829

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Cash Flows (Parenthetical) - USD ($)	Jan. 31, 2019	Oct. 31, 2018	Jan. 31, 2018	Oct. 31, 2017
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents [Abstract]
Cash - Balance Sheet	$ 6,902,900	$ 14,901,091	$ 6,638,645
Restricted cash - Balance Sheet	290,209		547,132
Cash and Restricted Cash	$ 7,193,109	$ 14,901,091	$ 7,185,777	$ 21,733,611

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	3 Months Ended
	Jan. 31, 2019
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, 2019 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, 2018, 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 Revenue is recognized upon transfer of control of promised products or services to customers in an amount that reflects the consideration we expect to receive in exchange for those products or services. Our contracts primarily consist of agreements with marketing companies and other customers as described below. Our performance obligations consist of the delivery of ethanol, distillers' grains, and corn oil to our customers. Our customers primarily consist of two distinct marketing companies as described below. The consideration we receive for these products is fixed or determinable based on current observable market prices at the Chicago Mercantile Exchange, generally, and adjusted for local market differentials. Our contracts have specific delivery modes, rail or truck, and dates. Revenue is recognized when the Company delivers the products to the mode of transportation specified in the contract, at the transaction price established in the contract, net of commissions, fees, and freight. We sell each of the products via different marketing channels as described below. · Ethanol. The Company sells its ethanol via a marketing agreement with Eco-Energy, Inc. Eco-Energy sells one hundred percent of the Company's ethanol production based on agreements with end users at prices agreed upon mutually among the end user, Eco-Energy and the Company. Our performance obligations consist of our obligation to deliver ethanol to our customers. Our customer contracts consist of orders received from the customer pursuant to a marketing agreement. The marketing agreement calls for control and title to pass to Eco-Energy once a rail car is released to the railroad or a truck is released from the Company's scales. Revenue is recognized then at the price in the agreement with the end user, net of commissions, freight, and fees. · Distillers grains. The Company engages another third-party marketing company, RPMG, Inc., to sell one hundred percent of the distillers grains it produces at the plant. RPMG takes title and control once a rail car is released to the railroad or a truck is released from the Company's scales. Prices are agreed upon between RPMG and the Company. Our performance obligations consist of our obligation to deliver corn oil to our customers. Our customer contracts consist of orders received from the customer pursuant to a marketing agreement. Revenue is recognized net of commissions, freight and fees. · Distillers corn oil (corn oil). The Company sells one hundred percent of its corn oil production to RPMG, Inc. The process for selling corn oil is the same as our distillers’ grains. RPMG takes title and control once a rail car is released to the railroad or a truck is released from the Company's scales. Prices are agreed upon between RPMG and the Company. Our performance obligations consist of our obligation to deliver corn oil to our customers. Our customer contracts consist of orders received from the customer pursuant to a marketing agreement. Revenue is recognized net of commissions, freight and fees. 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 5. Investments 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 which is 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 7 below for the terms of GFE’s credit facility with Project Hawkeye. On June 29, 2018, GFE executed a subscription agreement for investment in Harvestone Group, LLC (“Harvestone”), a Delaware limited liability company, and a Joinder to the Operating Agreement of Harvestone. In connection with the execution of the subscription agreement and joinder, GFE made a capital contribution of $2.0 million in exchange for twenty (20) preferred membership units and was sufficient to secure GFE the right to appoint one advisor to the advisory committee to the managers of Harvestone. GFE has appointed Eric Baukol, its Risk Manager, to serve as its appointed advisor. Harvestone is a start-up ethanol marketing, logistics, and trading company headquartered in Franklin, Tennessee. Harvestone is owned by several other ethanol producers and other private investors that expects that its primary business will be marketing and trading for member and non-member ethanol producers. The marketing and trading commenced in January 2019. The investments are 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. Recently Adopted Accounting Pronouncements Effective November 1, 2018, the Company adopted the amended guidance ASC Topic 606, Revenue from Contracts with Customers. Refer to Note 1 –Summary of Significant Accounting Policies and Note 3 – Revenue for further details. In November 2016 the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2016-18, Restricted Cash, which amended Statement of Cash Flows (Topic 230) of the Accounting Standards Codification. The new guidance requires an entity to reconcile and explain the period-over-period change in total cash, cash equivalents, restricted cash and restricted cash equivalents within its statement of cash flows. Effective November 1, 2018, the Company adopted the new standard and has applied it retrospectively. Accordingly, the condensed consolidated statements of cash flows for the periods ended January 31, 2019 and 2018 have been adjusted from amounts previously reported. In August 2018, the SEC adopted the final rule under SEC Release No. 33-10532, "Disclosure Update and Simplification," amending certain disclosure requirements that were redundant, duplicative, overlapping, outdated or superseded. In addition, the amendments expanded the disclosure requirements on the analysis of stockholders' equity for interim financial statements. Under the amendments, an analysis of changes in each caption of stockholders' equity presented in the balance sheet must be provided in a note or separate statement. The analysis must present a reconciliation of the beginning balance to the ending balance for each period for which a statement of comprehensive income is required to be filed. Accordingly, the condensed consolidated statements of changes in members’ equity for the periods ended January 31, 2019 and 2018 have been presented.

RISKS AND UNCERTAINTIES

RISKS AND UNCERTAINTIES	3 Months Ended
	Jan. 31, 2019
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.

REVENUE

REVENUE	3 Months Ended
	Jan. 31, 2019
REVENUE
REVENUE	3. REVENUE Adoption of ASC Topic 606 On November 1, 2018, the Company adopted the amended guidance in ASC Topic 606, Revenue from Contracts with Customers, and all related amendments (“new revenue standard”) and applied it to all contracts using the modified retrospective transition method. The adoption of the new revenue standard did not result in any changes to the timing or amount of revenue recognized prior to November 1, 2018, but did result in expanded disclosures to our consolidated financial statements. Revenue by Source All revenues from contracts with customers under ASC Topic 606 are recognized at a point in time. The following table disaggregates revenue by major source for the three months ended January 31, 2019: Three Months Ended January 31, 2019 Ethanol Production Natural Gas Pipeline Total Ethanol $ $ — $ Distillers’ Grains — Corn Oil — Other — Natural Gas — Total Revenues $ $ $ Payment Terms The Company has contractual payment terms with each respective marketer that sells ethanol, distillers’ grains and corn oil. These terms are 10 calendar days after the transfer of control date. Shipping and Handling Costs Shipping and handling costs related to contracts with customers for sale of goods are accounted for as a fulfillment activity and are included in cost of goods sold. Accordingly, amounts billed to customers for such costs are included as a component of revenue.

INVENTORY

INVENTORY	3 Months Ended
	Jan. 31, 2019
INVENTORY
INVENTORY	4. INVENTORY Inventories consist of the following: January 31, 2019 October 31, 2018 (unaudited) Raw materials $ 2,678,474 $ 4,508,297 Supplies 3,218,890 2,957,452 Work in process 1,525,529 1,222,251 Finished goods 7,409,554 6,228,809 Totals $ 14,832,447 $ 14,916,809 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 $1,488,000 and $377,000 for the three months ended January 31, 2019 and 2018, respectively. 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 corn inventories of approximately $24,000 for the three months ended January 31, 2019.

DERIVATIVE INSTRUMENTS

DERIVATIVE INSTRUMENTS	3 Months Ended
	Jan. 31, 2019
DERIVATIVE INSTRUMENTS
DERIVATIVE INSTRUMENTS	5. DERIVATIVE INSTRUMENTS As of January 31, 2019, the total notional amount of GFE’s outstanding corn derivative instruments was approximately 2,065,000 bushels, comprised of long corn positions on 75,000 bushels that were entered into to hedge forecasted ethanol sales through July 2019, and short corn positions on 1,990,000 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 of January 31, 2019, the total notional amount of HLBE’s outstanding corn derivative instruments was approximately 1,595,000 bushels, comprised of long corn positions on 10,000 bushels that were entered into to hedge forecasted ethanol sales through July 2019, and short corn positions on 1,585,000 bushels that were entered into to hedge forecasted corn purchases through March 2020. 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, 2019, GFE had approximately $151,000 of cash collateral (restricted cash) related to derivatives held by a broker. As of January 31, 2019, HLBE had approximately $139,000 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, 2019, none of which were designated as hedging instruments: Consolidated Balance Sheet Location Assets Liabilities Corn contracts - GFE Commodity derivative instruments $ 113,075 $ — Corn contracts - HLBE Commodity derivative instruments 103,175 — Totals $ 216,250 $ — As of October 31, 2018, the total notional amount of GFE’s outstanding corn derivative instruments was approximately 3,105,000 bushels, comprised of long corn positions on 575,000 bushels that were entered into to hedge forecasted ethanol sales through July 2019, and short corn positions on 2,530,000 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 of October 31, 2018, GFE did not have any cash collateral (restricted cash) related to derivatives held by a broker. As of October 31, 2018, the total notional amount of HLBE’s outstanding corn derivative instruments was approximately 2,685,000 bushels, comprised of long corn positions on 510,000 bushels that were entered into to hedge forecasted ethanol sales through July 2019, and short corn positions on 2,175,000 bushels that were entered into to hedge forecasted corn purchases through March 2020. 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, 2018, HLBE did not have any cash collateral (restricted cash) related to derivatives held by a broker. The following tables provide details regarding the Company's derivative instruments at October 31, 2018, none of which were designated as hedging instruments: Consolidated Balance Sheet Location Assets Liabilities Corn contracts - GFE Commodity derivative instruments $ 532,300 $ — Corn contracts - HLBE Commodity derivative instruments 425,638 — Corn contracts - GFE Commodity derivative instruments — 25,180 Corn contracts - HLBE Commodity derivative instruments — 25,180 Totals $ 957,938 $ 50,360 The following tables provide details regarding the gains (losses) from Company's derivative instruments in the consolidated statements of operations, none of which are designated as hedging instruments: Consolidated Statement Three Months Ended January 31, of Operations Location 2019 2018 Corn contracts Cost of Goods Sold $ 44,228 $ (265,068) Ethanol contracts Revenues — 139,497 Natural gas contracts Cost of Goods Sold — 12,338 Total gain (loss) $ 44,228 $ (113,233)

FAIR VALUE

FAIR VALUE	3 Months Ended
	Jan. 31, 2019
FAIR VALUE
FAIR VALUE	6. 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, 2019: 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 $ 216,250 $ 216,250 $ 216,250 $ — $ — The following table provides information on those derivative assets and liabilities measured at fair value on a recurring basis at October 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 $ 957,938 $ 957,938 $ 957,938 $ — $ — Financial Liabilities: Commodity Derivative Instruments - Corn $ 50,360 $ 50,360 $ — $ 50,360 $ 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, corn, 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, 2019
DEBT FACILITIES
DEBT FACILITIES	7. DEBT FACILITIES Debt financing consists of the following: January 31, 2019 October 31, 2018 (unaudited) GRANITE FALLS ENERGY: Seasonal revolving loan, see terms below. $ — $ — Term note payable to Project Hawkeye, see terms below. 7,500,000 7,500,000 HERON LAKE BIOENERGY: Amended revolving term note payable to lending institution, see terms below. — — Seasonal line of credit 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. 947,300 947,300 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. 4,138 11,901 Totals 8,451,438 8,459,201 Less: amounts due within one year 849,769 659,791 Net long-term debt $ 7,601,669 $ 7,799,410 Granite Falls Energy Seasonal Revolving Loan GFE has a credit facility with a lender. This credit facility was originally a revolving term loan facility with an aggregate principal commitment amount of $18,000,000 that reduced by $2,000,000 semi-annually beginning September 1, 2014, until final payment at maturity on March 1, 2018. On September 8, 2017, the revolving term loan was converted to a seasonal revolving loan in the amount of $6,000,000. GFE had no outstanding balance on the revolving term loan at the time of conversion. There was no outstanding balance on the seasonal revolving loan at January 31, 2019. Therefore, the aggregate principal amount available for borrowing by GFE under this seasonal revolving loan at January 31, 2019 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 was 5.26% and 5.06% at January 31, 2019 and October 31, 2018, respectively. The credit facility also requires GFE to comply with certain financial covenants, at various times calculated monthly, quarterly, or annually, including restriction of the payment of dividends and maintenance of certain financial ratios including minimum working capital, minimum net worth, and a debt service coverage ratio as defined by the credit facility. Failure to comply with the protective loan covenants or maintain the required financial ratios may cause acceleration of the outstanding principal balances on the revolving term loan and/or the imposition of fees, charges or penalties. 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 5.56% and 5.36% at January 31, 2019 and October 31, 2018 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. As of January 31, 2019, GFE had an outstanding balance of $7.5 million under the Project Hawkeye credit facility to finance the balance of its investment in Ringneck. Heron Lake BioEnergy Amended Credit Facility The amended credit facility represents the credit arrangement HLBE entered into as of April 6, 2018, with an effective date of March 29, 2018, which replaced a prior revolving term note. The amended credit facility includes an amended and restated revolving term loan with a $4,000,000 principal commitment and a revolving seasonal line of credit with a $4,000,000 principal commitment. The loans are secured by substantially all of HLBE’s assets, including a subsidiary guarantee. The amended credit facility contains customary covenants, including restrictions on the payment of dividends and loans and advances to Agrinatural, and maintenance of certain financial ratios including minimum working capital, minimum net worth and a debt service coverage ratio as defined by the credit facility. Failure to comply with the protective loan covenants or maintain the required financial ratios may cause acceleration of the outstanding principal balances on the revolving term loan and/or the imposition of fees, charges, or penalties. In October 2018, The Company had an event of non-compliance related to the debt service coverage ratio as defined in the amended credit facility. In December 2018, The Company received a waiver from its lender waiving this event of noncompliance. As part of the amended credit facility closing, HLBE entered into an amended administrative agency agreement with CoBank, ACP (“CoBank”). As a result, CoBank will continue act as the agent for the lender with respect to the amended credit facility. HLBE agreed to pay CoBank an annual fee of $2,500 for its services as administrative agent. Amended Revolving Term Note Under the terms of the amended revolving term loan, HLBE may borrow, repay, and reborrow up to the aggregate principal commitment amount of $4,000,000. Final payment of amounts borrowed under amended revolving term loan is due December 1, 2021. Interest on the amended revolving term loan accrues at a variable weekly rate equal to 3.10% above the One-Month London Interbank Offered Rate (“LIBOR”) Index rate, which was 5.61% at January 31, 2019. HLBE also agreed to pay an unused commitment fee on the unused available portion of the amended revolving term loan commitment at the rate of 0.50% per annum, payable monthly in arrears. The aggregate principal amount available to HLBE for borrowing under the amended revolving term loan at January 31, 2019 and October 31, 2018 was $4,000,000. Seasonal Revolving Loan Under the terms of the seasonal revolving loan, HLBE may borrow, repay, and reborrow up to the aggregate principal commitment amount of $4,000,000 until its maturing on May 1, 2019. Amounts borrowed under the seasonal revolving loan bear interest at a variable weekly rate equal to 2.85% above the rate quoted by LIBOR Index rate, which was 5.36% at January 31, 2019. The aggregate principal amount available under the seasonal revolving loan was $4,000,000 at January 31, 2019 and $4,000,000 at October 31, 2018. HLBE also agreed to pay an unused commitment fee on the unused portion of the seasonal revolving loan commitment at the rate of 0.250% per annum. Estimated annual maturities of debt at January 31, 2019, are as follows based on the most recent debt agreements: 2020 $ 849,769 2021 1,405,406 2022 1,374,835 2023 1,071,429 2024 1,071,429 Thereafter 2,678,570 Total debt $ 8,451,438

MEMBERS' EQUITY

MEMBERS' EQUITY	3 Months Ended
	Jan. 31, 2019
MEMBERS' EQUITY
MEMBERS' EQUITY	8. 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, 2019 and October 31, 2018, GFE had 30,606 membership units authorized, issued, and outstanding. In December 2018, GFE’s Board of Governors declared a cash distribution of $40 per unit or approximately $1,224,000 for GFE unit holders of record as of December 20, 2018 and was paid by GFE in January 2019. 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. 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, 2019
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES	9. COMMITMENTS AND CONTINGENCIES Corn Purchases - Members GFE purchased corn from board members of approximately $1,349,000 and $437,000 for the three months ended January 31, 2019 and 2018, respectively. HLBE purchased corn from board members of approximately $1,949,000 and $4,455,000 for the three months ended January 31, 2019 and 2018, respectively. Corn Purchase Commitments At January 31, 2019, GFE had cash and basis contracts for forward corn purchase commitments for approximately 3,013,000 bushels for various delivery periods through December 2021. At January 31, 2019, HLBE had cash and basis contracts for forward corn purchase commitments for approximately 1,699,000 bushels for various delivery periods through January 2020. Given the uncertainty of future ethanol and corn prices, GFE or HLBE could incur a loss on the outstanding corn purchase contracts in future periods. Management has evaluated these forward contracts and its inventories using the lower of cost or net realizable value evaluation, similar to the method used on its inventory, and has determined that GFE had an impairment loss of approximately $180,000 at January 31, 2019 and HLBE had an impairment loss of approximately $154,000 at January 31, 2019. The impairment expense is recorded as a component of cost of goods sold. Ethanol Contracts At January 31, 2019, GFE had fixed and basis contracts to sell approximately $10,927,000 of ethanol for various delivery periods through March 2019, which approximates 87% of its anticipated ethanol sales for that period. At January 31, 2019, HLBE had fixed and basis contracts to sell approximately $11,585,000 of ethanol for various delivery periods through March 2019, which approximates 91% of its anticipated ethanol sales for that period. Distillers' Grain Contracts At January 31, 2019, GFE had forward contracts to sell approximately $1,818,000 of distillers’ grain for delivery periods through March 2019, which approximates 52% of its anticipated distillers’ grain sales during that period. At January 31, 2019, HLBE had forward contracts to sell approximately $647,000 of distillers’ grains for delivery in February 2019, which approximates 32% of its anticipated distillers’ grain sales during that period. Corn Oil At January 31, 2019, GFE had forward contracts to sell approximately $266,000 of corn oil for delivery in February 2019, which approximates 85% of its anticipated corn oil sales for that period. At January 31, 2019, HLBE had forward contracts to sell approximately $284,000 of corn oil for delivery in February 2019, which approximates 87% of its anticipated corn oil sales for that period. 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 ACCOUN_2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	3 Months Ended
	Jan. 31, 2019
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, 2019 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, 2018, 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 Revenue is recognized upon transfer of control of promised products or services to customers in an amount that reflects the consideration we expect to receive in exchange for those products or services. Our contracts primarily consist of agreements with marketing companies and other customers as described below. Our performance obligations consist of the delivery of ethanol, distillers' grains, and corn oil to our customers. Our customers primarily consist of two distinct marketing companies as described below. The consideration we receive for these products is fixed or determinable based on current observable market prices at the Chicago Mercantile Exchange, generally, and adjusted for local market differentials. Our contracts have specific delivery modes, rail or truck, and dates. Revenue is recognized when the Company delivers the products to the mode of transportation specified in the contract, at the transaction price established in the contract, net of commissions, fees, and freight. We sell each of the products via different marketing channels as described below. · Ethanol. The Company sells its ethanol via a marketing agreement with Eco-Energy, Inc. Eco-Energy sells one hundred percent of the Company's ethanol production based on agreements with end users at prices agreed upon mutually among the end user, Eco-Energy and the Company. Our performance obligations consist of our obligation to deliver ethanol to our customers. Our customer contracts consist of orders received from the customer pursuant to a marketing agreement. The marketing agreement calls for control and title to pass to Eco-Energy once a rail car is released to the railroad or a truck is released from the Company's scales. Revenue is recognized then at the price in the agreement with the end user, net of commissions, freight, and fees. · Distillers grains. The Company engages another third-party marketing company, RPMG, Inc., to sell one hundred percent of the distillers grains it produces at the plant. RPMG takes title and control once a rail car is released to the railroad or a truck is released from the Company's scales. Prices are agreed upon between RPMG and the Company. Our performance obligations consist of our obligation to deliver corn oil to our customers. Our customer contracts consist of orders received from the customer pursuant to a marketing agreement. Revenue is recognized net of commissions, freight and fees. · Distillers corn oil (corn oil). The Company sells one hundred percent of its corn oil production to RPMG, Inc. The process for selling corn oil is the same as our distillers’ grains. RPMG takes title and control once a rail car is released to the railroad or a truck is released from the Company's scales. Prices are agreed upon between RPMG and the Company. Our performance obligations consist of our obligation to deliver corn oil to our customers. Our customer contracts consist of orders received from the customer pursuant to a marketing agreement. Revenue is recognized net of commissions, freight and fees.
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 5.
Investments	Investments 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 which is 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 7 below for the terms of GFE’s credit facility with Project Hawkeye. On June 29, 2018, GFE executed a subscription agreement for investment in Harvestone Group, LLC (“Harvestone”), a Delaware limited liability company, and a Joinder to the Operating Agreement of Harvestone. In connection with the execution of the subscription agreement and joinder, GFE made a capital contribution of $2.0 million in exchange for twenty (20) preferred membership units and was sufficient to secure GFE the right to appoint one advisor to the advisory committee to the managers of Harvestone. GFE has appointed Eric Baukol, its Risk Manager, to serve as its appointed advisor. Harvestone is a start-up ethanol marketing, logistics, and trading company headquartered in Franklin, Tennessee. Harvestone is owned by several other ethanol producers and other private investors that expects that its primary business will be marketing and trading for member and non-member ethanol producers. The marketing and trading commenced in January 2019. The investments are 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.
Recently Adopted Accounting Pronouncements	Recently Adopted Accounting Pronouncements Effective November 1, 2018, the Company adopted the amended guidance ASC Topic 606, Revenue from Contracts with Customers. Refer to Note 1 –Summary of Significant Accounting Policies and Note 3 – Revenue for further details. In November 2016 the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2016-18, Restricted Cash, which amended Statement of Cash Flows (Topic 230) of the Accounting Standards Codification. The new guidance requires an entity to reconcile and explain the period-over-period change in total cash, cash equivalents, restricted cash and restricted cash equivalents within its statement of cash flows. Effective November 1, 2018, the Company adopted the new standard and has applied it retrospectively. Accordingly, the condensed consolidated statements of cash flows for the periods ended January 31, 2019 and 2018 have been adjusted from amounts previously reported. In August 2018, the SEC adopted the final rule under SEC Release No. 33-10532, "Disclosure Update and Simplification," amending certain disclosure requirements that were redundant, duplicative, overlapping, outdated or superseded. In addition, the amendments expanded the disclosure requirements on the analysis of stockholders' equity for interim financial statements. Under the amendments, an analysis of changes in each caption of stockholders' equity presented in the balance sheet must be provided in a note or separate statement. The analysis must present a reconciliation of the beginning balance to the ending balance for each period for which a statement of comprehensive income is required to be filed. Accordingly, the condensed consolidated statements of changes in members’ equity for the periods ended January 31, 2019 and 2018 have been presented.

REVENUE (Tables)

REVENUE (Tables)	3 Months Ended
	Jan. 31, 2019
REVENUE
Schedule of disaggregated revenue by source	Three Months Ended January 31, 2019 Ethanol Production Natural Gas Pipeline Total Ethanol $ $ — $ Distillers’ Grains — Corn Oil — Other — Natural Gas — Total Revenues $ $ $

INVENTORY (Tables)

INVENTORY (Tables)	3 Months Ended
	Jan. 31, 2019
INVENTORY
Schedule of Inventory	January 31, 2019 October 31, 2018 (unaudited) Raw materials $ 2,678,474 $ 4,508,297 Supplies 3,218,890 2,957,452 Work in process 1,525,529 1,222,251 Finished goods 7,409,554 6,228,809 Totals $ 14,832,447 $ 14,916,809

DERIVATIVE INSTRUMENTS (Tables)

DERIVATIVE INSTRUMENTS (Tables)	3 Months Ended
	Jan. 31, 2019
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, 2019, none of which were designated as hedging instruments: Consolidated Balance Sheet Location Assets Liabilities Corn contracts - GFE Commodity derivative instruments $ 113,075 $ — Corn contracts - HLBE Commodity derivative instruments 103,175 — Totals $ 216,250 $ — As of October 31, 2018, the total notional amount of GFE’s outstanding corn derivative instruments was approximately 3,105,000 bushels, comprised of long corn positions on 575,000 bushels that were entered into to hedge forecasted ethanol sales through July 2019, and short corn positions on 2,530,000 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 of October 31, 2018, GFE did not have any cash collateral (restricted cash) related to derivatives held by a broker. As of October 31, 2018, the total notional amount of HLBE’s outstanding corn derivative instruments was approximately 2,685,000 bushels, comprised of long corn positions on 510,000 bushels that were entered into to hedge forecasted ethanol sales through July 2019, and short corn positions on 2,175,000 bushels that were entered into to hedge forecasted corn purchases through March 2020. 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, 2018, HLBE did not have any cash collateral (restricted cash) related to derivatives held by a broker. The following tables provide details regarding the Company's derivative instruments at October 31, 2018, none of which were designated as hedging instruments: Consolidated Balance Sheet Location Assets Liabilities Corn contracts - GFE Commodity derivative instruments $ 532,300 $ — Corn contracts - HLBE Commodity derivative instruments 425,638 — Corn contracts - GFE Commodity derivative instruments — 25,180 Corn contracts - HLBE Commodity derivative instruments — 25,180 Totals $ 957,938 $ 50,360
Schedule of gains (losses) from derivative instruments	Consolidated Statement Three Months Ended January 31, of Operations Location 2019 2018 Corn contracts Cost of Goods Sold $ 44,228 $ (265,068) Ethanol contracts Revenues — 139,497 Natural gas contracts Cost of Goods Sold — 12,338 Total gain (loss) $ 44,228 $ (113,233)

FAIR VALUE (Tables)

FAIR VALUE (Tables)	3 Months Ended
	Jan. 31, 2019
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, 2019: 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 $ 216,250 $ 216,250 $ 216,250 $ — $ — The following table provides information on those derivative assets and liabilities measured at fair value on a recurring basis at October 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 $ 957,938 $ 957,938 $ 957,938 $ — $ — Financial Liabilities: Commodity Derivative Instruments - Corn $ 50,360 $ 50,360 $ — $ 50,360 $

DEBT FACILITIES (Tables)

DEBT FACILITIES (Tables)	3 Months Ended
	Jan. 31, 2019
DEBT FACILITIES
Schedule of debt financing	January 31, 2019 October 31, 2018 (unaudited) GRANITE FALLS ENERGY: Seasonal revolving loan, see terms below. $ — $ — Term note payable to Project Hawkeye, see terms below. 7,500,000 7,500,000 HERON LAKE BIOENERGY: Amended revolving term note payable to lending institution, see terms below. — — Seasonal line of credit 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. 947,300 947,300 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. 4,138 11,901 Totals 8,451,438 8,459,201 Less: amounts due within one year 849,769 659,791 Net long-term debt $ 7,601,669 $ 7,799,410
Schedule of annual maturities of debt	2020 $ 849,769 2021 1,405,406 2022 1,374,835 2023 1,071,429 2024 1,071,429 Thereafter 2,678,570 Total debt $ 8,451,438

SUMMARY OF SIGNIFICANT ACCOUN_3

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) gal in Millions	3 Months Ended
	Jan. 31, 2019gal
Granite Falls Energy, LLC Excluding Heron Lake BioEnergy, LLC
Summary of significant accounting policies
Plant production capacity	60
Production volume permitted	70
Heron Lake BioEnergy, LLC
Summary of significant accounting policies
Plant production capacity	60
Production volume permitted	72.3
Heron Lake BioEnergy, LLC
Summary of significant accounting policies
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners	49.30%
Heron Lake BioEnergy, LLC | Project Viking, LLC
Summary of significant accounting policies
Ownership percentage	50.70%
Project Viking, LLC
Summary of significant accounting policies
Ownership percentage	100.00%
Agrinatural, LLC
Summary of significant accounting policies
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners	27.00%
Agrinatural, LLC | HLBE Pipeline Company, LLC
Summary of significant accounting policies
Ownership percentage	73.00%

SUMMARY OF SIGNIFICANT ACCOUN_4

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Other (Details)	3 Months Ended
	Jan. 31, 2019segment
Reportable Operating Segments
Number of reportable segments	1
Agrinatural, LLC | Maximum
Reportable Operating Segments
Revenues of subsidiary, percentage	1.00%

SUMMARY OF SIGNIFICANT ACCOUN_5

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Revenue Recognition (Details)	3 Months Ended
	Jan. 31, 2019company
CONCENTRATIONS
Number of distinct marketing companies	2
Ethanol | Eco-Energy, Inc. | Revenue from product line
CONCENTRATIONS
Concentration percentage	100.00%
Distillers grains | RPMG, Inc. | Revenue from product line
CONCENTRATIONS
Concentration percentage	100.00%
Corn oil | RPMG, Inc. | Revenue from product line
CONCENTRATIONS
Concentration percentage	100.00%

SUMMARY OF SIGNIFICANT ACCOUN_6

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Investments (Details) $ / shares in Units, gal in Millions	Jun. 29, 2018USD ($)advisorshares	Aug. 02, 2017USD ($)	Nov. 01, 2016USD ($)director$ / sharessharesgal
Ringneck Energy and; Feed, LLC
Investment
Expected ethanol production capacity | gal			80
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
Number of directors Company has the right to appoint | director			1
Payment for equity method investment		$ 6,750,000	$ 750,000
Note payable			$ 6,750,000
Granite Falls Energy, LLC Excluding Heron Lake BioEnergy, LLC | Harvestone Group, LLC
Investment
Units purchased | shares	20
Payment for equity method investment	$ 2,000,000
Number of advisors GFE has the right to appoint | advisor	1
Granite Falls Energy, LLC Excluding Heron Lake BioEnergy, LLC | Term note payable to Project Hawkeye
Investment
Proceeds from long-term debt		$ 7,500,000

RISKS AND UNCERTAINTIES Narrati

RISKS AND UNCERTAINTIES Narrative (Details) - Product	3 Months Ended
	Jan. 31, 2019
Minimum | Total revenues | Ethanol
Concentration Risk
Concentration percentage	75.00%
Minimum | Cost of goods sold | Corn
Concentration Risk
Concentration percentage	65.00%
Maximum | Total revenues | Ethanol
Concentration Risk
Concentration percentage	90.00%
Maximum | Cost of goods sold | Corn
Concentration Risk
Concentration percentage	85.00%

REVENUE (Details)

REVENUE (Details) - USD ($)	3 Months Ended
	Jan. 31, 2019	Jan. 31, 2018
Revenue Recognition
Total Revenues	$ 49,375,097	$ 52,993,499
Payment terms	10 days
Ethanol Production
Revenue Recognition
Total Revenues	$ 48,789,798
Natural Gas Pipeline
Revenue Recognition
Total Revenues	585,299
Ethanol
Revenue Recognition
Total Revenues	35,965,285
Ethanol | Ethanol Production
Revenue Recognition
Total Revenues	35,965,285
Distillers grains
Revenue Recognition
Total Revenues	10,566,874
Distillers grains | Ethanol Production
Revenue Recognition
Total Revenues	10,566,874
Corn oil
Revenue Recognition
Total Revenues	1,993,336
Corn oil | Ethanol Production
Revenue Recognition
Total Revenues	1,993,336
Other
Revenue Recognition
Total Revenues	264,303
Other | Ethanol Production
Revenue Recognition
Total Revenues	264,303
Natural Gas
Revenue Recognition
Total Revenues	585,299
Natural Gas | Natural Gas Pipeline
Revenue Recognition
Total Revenues	$ 585,299

INVENTORY (Details)

INVENTORY (Details) - USD ($)	3 Months Ended
	Jan. 31, 2019	Jan. 31, 2018	Oct. 31, 2018
Inventory
Raw materials	$ 2,678,474		$ 4,508,297
Supplies	3,218,890		2,957,452
Work in process	1,525,529		1,222,251
Finished goods	7,409,554		6,228,809
Totals	14,832,447		$ 14,916,809
Ethanol
Inventory
Loss on inventories	1,488,000	$ 377,000
Corn
Inventory
Loss on inventories	$ 24,000

DERIVATIVE INSTRUMENTS - Assets

DERIVATIVE INSTRUMENTS - Assets And Liabilities (Details)	3 Months Ended	12 Months Ended
	Jan. 31, 2019USD ($)bu	Oct. 31, 2018USD ($)bu	Jan. 31, 2018USD ($)
Derivatives, Fair Value
Cash collateral (restricted cash)	$ 290,209		$ 547,132
Financial Assets	$ 216,250	$ 957,938
Derivative liabilities		$ 50,360
Granite Falls Energy, LLC Excluding Heron Lake BioEnergy, LLC | Corn Contracts
Derivatives, Fair Value
Total nonmonetary notional amount outstanding | bu	2,065,000	3,105,000
Granite Falls Energy, LLC Excluding Heron Lake BioEnergy, LLC | Derivatives held by a broker
Derivatives, Fair Value
Cash collateral (restricted cash)	$ 151,000
Granite Falls Energy, LLC Excluding Heron Lake BioEnergy, LLC | Long/Purchase position | Corn Contracts
Derivatives, Fair Value
Total nonmonetary notional amount outstanding | bu	75,000	575,000
Granite Falls Energy, LLC Excluding Heron Lake BioEnergy, LLC | Short/Sale position | Corn Contracts
Derivatives, Fair Value
Total nonmonetary notional amount outstanding | bu	1,990,000	2,530,000
Heron Lake BioEnergy, LLC | Corn Contracts
Derivatives, Fair Value
Total nonmonetary notional amount outstanding | bu	1,595,000	2,685,000
Heron Lake BioEnergy, LLC | Derivatives held by a broker
Derivatives, Fair Value
Cash collateral (restricted cash)	$ 139,000
Heron Lake BioEnergy, LLC | Long/Purchase position | Corn Contracts
Derivatives, Fair Value
Total nonmonetary notional amount outstanding | bu	10,000	510,000
Heron Lake BioEnergy, LLC | Short/Sale position | Corn Contracts
Derivatives, Fair Value
Total nonmonetary notional amount outstanding | bu	1,585,000	2,175,000
Not Designated as Hedging Instruments
Derivatives, Fair Value
Financial Assets	$ 216,250	$ 957,938
Derivative liabilities		50,360
Not Designated as Hedging Instruments | Granite Falls Energy, LLC Excluding Heron Lake BioEnergy, LLC | Corn Contracts
Derivatives, Fair Value
Financial Assets	113,075	532,300
Derivative liabilities		25,180
Not Designated as Hedging Instruments | Heron Lake BioEnergy, LLC | Corn Contracts
Derivatives, Fair Value
Financial Assets	$ 103,175	425,638
Derivative liabilities		$ 25,180

DERIVATIVE INSTRUMENTS - Income

DERIVATIVE INSTRUMENTS - Income Statement (Details) - Not Designated as Hedging Instruments - USD ($)	3 Months Ended
	Jan. 31, 2019	Jan. 31, 2018
Derivative Instruments, Gain (Loss)
Total gain (loss)	$ 44,228	$ (113,233)
Cost of Goods Sold. | Corn Contracts
Derivative Instruments, Gain (Loss)
Total gain (loss)	$ 44,228	(265,068)
Cost of Goods Sold. | Natural Gas Contracts
Derivative Instruments, Gain (Loss)
Total gain (loss)		12,338
Revenues | Ethanol Contracts
Derivative Instruments, Gain (Loss)
Total gain (loss)		$ 139,497

FAIR VALUE (Details)

FAIR VALUE (Details) - USD ($)	Jan. 31, 2019	Oct. 31, 2018
Fair value
Financial Assets	$ 216,250	$ 957,938
Financial Liabilities		50,360
Corn Contracts | Carrying Amount
Fair value
Financial Assets	216,250	957,938
Financial Liabilities		50,360
Corn Contracts | Fair Value, Measurements, Recurring | Estimate of Fair Value Measurement
Fair value
Financial Assets	216,250	957,938
Financial Liabilities		50,360
Corn Contracts | Fair Value, Inputs, Level 1 | Fair Value, Measurements, Recurring | Estimate of Fair Value Measurement
Fair value
Financial Assets	$ 216,250	957,938
Corn Contracts | Fair Value, Inputs, Level 2 | Fair Value, Measurements, Recurring | Estimate of Fair Value Measurement
Fair value
Financial Liabilities		$ 50,360

DEBT FACILITIES (Details)

DEBT FACILITIES (Details) - USD ($)	3 Months Ended	12 Months Ended
	Jan. 31, 2019	Oct. 31, 2018
Line of Credit Facility
Long-term Debt	$ 8,451,438	$ 8,459,201
Less: amounts due within one year	849,769	659,791
Net long term debt	7,601,669	7,799,410
Term note payable to Project Hawkeye | Granite Falls Energy, LLC Excluding Heron Lake BioEnergy, LLC
Line of Credit Facility
Long-term Debt	7,500,000	7,500,000
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	$ 947,300	$ 947,300
Frequency of payment	semi-annual	semi-annual
Payment	$ 189,393	$ 189,393
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	$ 4,138	$ 11,901
Frequency of payment	monthly	monthly
Payment	$ 3,942	$ 3,942
Interest rate (as a percent)	8.73%	8.73%

DEBT FACILITIES - Granite Falls

DEBT FACILITIES - Granite Falls Energy (Details) - USD ($)	Sep. 08, 2017	Aug. 02, 2017	Nov. 01, 2016	Sep. 01, 2014	Jan. 31, 2019	Oct. 31, 2018	Jan. 31, 2018	Aug. 31, 2014
Line of Credit Facility
Cash collateral (restricted cash)					$ 290,209		$ 547,132
Revolving term loan facility | Granite Falls Energy, LLC Excluding Heron Lake BioEnergy, LLC
Line of Credit Facility
Credit facility maximum								$ 18,000,000
Line of credit future reduction amounts				$ 2,000,000
Amounts outstanding under the credit facility	$ 0
Seasonal revolving term loan | Granite Falls Energy, LLC Excluding Heron Lake BioEnergy, LLC
Line of Credit Facility
Credit facility maximum	6,000,000
Amounts outstanding under the credit facility					0
Aggregate principal amount available for borrowing					$ 6,000,000
Interest rate (as a percent)					5.26%	5.06%
Seasonal revolving term loan | Granite Falls Energy, LLC Excluding Heron Lake BioEnergy, LLC | Proposed plan
Line of Credit Facility
Cash collateral (restricted cash)	$ 0
Term note payable to Project Hawkeye | Granite Falls Energy, LLC Excluding Heron Lake BioEnergy, LLC
Line of Credit Facility
Amounts outstanding under the credit facility					$ 7,500,000
Proceeds from long-term debt		$ 7,500,000
Interest rate (as a percent)					5.56%	5.36%
Interest rate floor (as a percent)		3.55%
Maximum period of annual interest payments only		2 years
Debt instrument amortization period after first two years		7 years
One Month LIBOR | Seasonal revolving term loan | Granite Falls Energy, LLC Excluding Heron Lake BioEnergy, LLC
Line of Credit Facility
Spread above variable interest rate	2.75%
One Month LIBOR | Term note payable to Project Hawkeye | 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 | Term note payable to Project Hawkeye | Equity securities | Granite Falls Energy, LLC Excluding Heron Lake BioEnergy, LLC
Line of Credit Facility
Units purchased		1,500

DEBT FACILITIES - Heron Lake Bi

DEBT FACILITIES - Heron Lake BioEnergy (Details) - Heron Lake BioEnergy, LLC - USD ($)	Mar. 29, 2018	Jan. 31, 2019	Oct. 31, 2018
Amended revolving term note payable to lending institution
Line of Credit Facility
Credit facility maximum	$ 4,000,000
Interest rate (as a percent)		5.61%
Line of credit unused commitment fee (as a percent)	0.50%
Aggregate principal amount available for borrowing		$ 4,000,000	$ 4,000,000
CoBank
Line of Credit Facility
Annual fee	$ 2,500
Seasonal revolving term loan
Line of Credit Facility
Credit facility maximum	$ 4,000,000
Interest rate (as a percent)		5.36%
Line of credit unused commitment fee (as a percent)	0.25%
Aggregate principal amount available for borrowing		$ 4,000,000	$ 4,000,000
One Month LIBOR | Amended revolving term note payable to lending institution
Line of Credit Facility
Spread above variable interest rate	3.10%
One Month LIBOR | Seasonal revolving term loan
Line of Credit Facility
Spread above variable interest rate	2.85%

DEBT FACILITIES - Estimated Ann

DEBT FACILITIES - Estimated Annual Maturities (Details) - USD ($)	Jan. 31, 2019	Oct. 31, 2018
DEBT FACILITIES
2020	$ 849,769
2021	1,405,406
2022	1,374,835
2023	1,071,429
2024	1,071,429
Thereafter	2,678,570
Long-term Debt	$ 8,451,438	$ 8,459,201

MEMBERS' EQUITY (Details)

MEMBERS' EQUITY (Details)	Dec. 21, 2017USD ($)shares	Dec. 31, 2018USD ($)$ / shares	Dec. 31, 2017USD ($)$ / shares	Jan. 31, 2019USD ($)item$ / sharesshares	Jan. 31, 2018USD ($)$ / shares	Oct. 31, 2018shares
Number of classes of membership units | item				1
Membership Units, Par value | $ / shares				$ 0
Common Units Authorized | shares				30,606		30,606
Common Units Issued | shares				30,606		30,606
Common Units Outstanding | shares				30,606		30,606
Distribution per unit declared (in dollars per unit) | $ / shares				$ 40	$ 385
Amount of distribution declared				$ 1,196,000	$ 16,090,294
Amount of distribution paid				$ 1,196,000	11,779,102
Non-controlling Interest
Amount of distribution declared					$ 4,311,192
Granite Falls Energy, LLC Excluding Heron Lake BioEnergy, LLC
Distribution per unit declared (in dollars per unit) | $ / shares		$ 40	$ 385
Amount of distribution declared		$ 1,224,000	$ 11,783,000
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 | shares	24,475,824
Heron Lake BioEnergy, LLC | Granite Falls Energy, LLC Excluding Heron Lake BioEnergy, LLC | Capital Unit, Class B
Common Units Outstanding | shares	15,000,000

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Details)	3 Months Ended		12 Months Ended
	Jan. 31, 2019USD ($)bu	Jan. 31, 2018USD ($)	Oct. 31, 2018bu
Granite Falls Energy, LLC Excluding Heron Lake BioEnergy, LLC | Corn Contracts
Commitments and contingencies
Quantity of commitment | bu	2,065,000		3,105,000
Granite Falls Energy, LLC Excluding Heron Lake BioEnergy, LLC | Corn Contracts | Short/Sale position
Commitments and contingencies
Quantity of commitment | bu	1,990,000		2,530,000
Granite Falls Energy, LLC Excluding Heron Lake BioEnergy, LLC | Corn Contracts | Long/Purchase position
Commitments and contingencies
Quantity of commitment | bu	75,000		575,000
Asset impairment charges	$ 180,000
Granite Falls Energy, LLC Excluding Heron Lake BioEnergy, LLC | Corn Contracts | Board Members
Commitments and contingencies
Amount of corn purchased	1,349,000	$ 437,000
Granite Falls Energy, LLC Excluding Heron Lake BioEnergy, LLC | Ethanol Contracts | Short/Sale position
Commitments and contingencies
Value of commitment	$ 10,927,000
Anticipated sales (as a percent)	87.00%
Granite Falls Energy, LLC Excluding Heron Lake BioEnergy, LLC | Distillers' Grains | Short/Sale position
Commitments and contingencies
Value of commitment	$ 1,818,000
Anticipated sales (as a percent)	52.00%
Granite Falls Energy, LLC Excluding Heron Lake BioEnergy, LLC | Corn oil | Short/Sale position
Commitments and contingencies
Value of commitment	$ 266,000
Anticipated sales (as a percent)	85.00%
Granite Falls Energy, LLC Excluding Heron Lake BioEnergy, LLC | Corn Forward Cash and Basis Contracts Purchase Commitments
Commitments and contingencies
Quantity of commitment | bu	3,013,000
Heron Lake BioEnergy, LLC | Corn Contracts
Commitments and contingencies
Quantity of commitment | bu	1,595,000		2,685,000
Heron Lake BioEnergy, LLC | Corn Contracts | Short/Sale position
Commitments and contingencies
Quantity of commitment | bu	1,585,000		2,175,000
Heron Lake BioEnergy, LLC | Corn Contracts | Long/Purchase position
Commitments and contingencies
Quantity of commitment | bu	10,000		510,000
Asset impairment charges	$ 154,000
Heron Lake BioEnergy, LLC | Corn Contracts | Board Members
Commitments and contingencies
Amount of corn purchased	1,949,000	$ 4,455,000
Heron Lake BioEnergy, LLC | Ethanol Contracts | Short/Sale position
Commitments and contingencies
Value of commitment	$ 11,585,000
Anticipated sales (as a percent)	91.00%
Heron Lake BioEnergy, LLC | Distillers' Grains | Short/Sale position
Commitments and contingencies
Value of commitment	$ 647,000
Anticipated sales (as a percent)	32.00%
Heron Lake BioEnergy, LLC | Corn oil | Short/Sale position
Commitments and contingencies
Value of commitment	$ 284,000
Anticipated sales (as a percent)	87.00%
Heron Lake BioEnergy, LLC | Corn Forward Cash and Basis Contracts Purchase Commitments
Commitments and contingencies
Quantity of commitment | bu	1,699,000