Granite Falls Energy (GFGY) 10-Q 15 Jun 20 2020 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Apr. 30, 2020	Jun. 15, 2020
Cover [Abstract]
Document Type	10-Q
Document Period End Date	Apr. 30, 2020
Entity Registrant Name	Granite Falls Energy, LLC
Entity Current Reporting Status	Yes
Entity Filer Category	Non-accelerated Filer
Entity Interactive Data Current	Yes
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		30,606
Current Fiscal Year End Date	--10-31
Entity Central Index Key	0001181749
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q2
Amendment Flag	false

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($)	Apr. 30, 2020	Oct. 31, 2019
Current Assets
Cash	$ 5,868,761	$ 13,521,774
Restricted cash	351,068	52,516
Accounts receivable	159,793	7,427,895
Inventory	13,535,362	13,803,025
Commodity derivative instruments	359,269	823,098
Prepaid expenses and other current assets	1,093,065	534,948
Total current assets	21,367,318	36,163,256
Property, Plant and Equipment
Property and Equipment, net	54,080,658	58,269,142
Goodwill	1,372,473	1,372,473
Investments	8,736,095	9,327,584
Operating lease right of use asset	21,173,883
Other Assets	697,254	922,254
Total Assets	107,427,681	106,054,709
Current Liabilities
Current maturities of long-term debt	1,405,406	1,405,406
Checks drawn in excess of bank balances	807,756
Accounts payable	1,666,116	11,168,471
Commodity derivative instruments	241,650
Accrued expenses	2,469,394	780,795
Operating lease, current liabilities	3,622,457
Total current liabilities	10,212,779	13,354,672
Long-Term Debt, less current portion	13,534,447	6,639,488
Operating Lease, long-term liabilities	17,551,426
Other Long-Term Liabilities	1,398,962	1,376,000
Commitments and Contingencies
Members' equity attributable to Granite Falls Energy, LLC consists of 30,606 units authorized, issued, and outstanding at both April 30, 2020 and October 31, 2019	52,005,932	65,468,635
Non-controlling interest	12,724,135	19,215,914
Total members' equity	64,730,067	84,684,549
Total Liabilities and Members’ Equity	$ 107,427,681	$ 106,054,709

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - shares	Apr. 30, 2020	Oct. 31, 2019
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		6 Months Ended
	Apr. 30, 2020	Apr. 30, 2019	Apr. 30, 2020	Apr. 30, 2019
Consolidated Statements of Operations
Revenues	$ 33,106,922	$ 49,424,390	$ 86,463,248	$ 98,799,487
Cost of Goods Sold	45,653,163	50,418,243	99,951,982	102,528,865
Gross Loss	(12,546,241)	(993,853)	(13,488,734)	(3,729,378)
Operating Expenses	1,909,655	1,626,519	3,683,343	3,396,692
Operating Loss	(14,455,896)	(2,620,372)	(17,172,077)	(7,126,070)
Other Income (Expense):
Other income, net	207,581	226,206	207,527	227,665
Interest income	8,191	43,436	43,669	116,711
Interest expense	(113,114)	(80,526)	(217,112)	(194,189)
Investment loss	(690,174)		(591,489)
Total other income (expense), net	(587,516)	189,116	(557,405)	150,187
Net Loss	(15,043,412)	(2,431,256)	(17,729,482)	(6,975,883)
Less: Net Loss Attributable to Non-controlling Interest	3,160,225	528,607	4,345,596	1,495,732
Net Loss Attributable to Granite Falls Energy, LLC	$ (11,883,187)	$ (1,902,649)	$ (13,383,886)	$ (5,480,151)
Weighted Average Units Outstanding - Basic and Diluted (in units)	30,606	30,606	30,606	30,606
Net Loss Per Unit - Basic and Diluted	$ (388.26)	$ (62.17)	$ (437.30)	$ (179.05)
Distributions Per Unit (in dollars per unit)				$ 40

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Changes in Members’ Equity - USD ($)	Members' Equity attributable to Granite Falls Energy, LLC	Non-controlling Interest	Total
Balance - at Oct. 31, 2018	$ 75,083,782	$ 21,846,265	$ 96,930,047
Changes in Members' Equity
Member distribution	(1,224,226)		(1,224,226)
Net loss attributable to non-controlling interest		(967,125)	(967,125)
Net loss attributable to Granite Falls Energy, LLC	(3,577,502)		(3,577,502)
Balance - at Jan. 31, 2019	70,282,054	20,879,140	91,161,194
Balance - at Oct. 31, 2018	75,083,782	21,846,265	96,930,047
Changes in Members' Equity
Net loss attributable to Granite Falls Energy, LLC			(5,480,151)
Balance - at Apr. 30, 2019	68,379,405	20,350,533	88,729,938
Balance - at Jan. 31, 2019	70,282,054	20,879,140	91,161,194
Changes in Members' Equity
Net loss attributable to non-controlling interest		(528,607)	(528,607)
Net loss attributable to Granite Falls Energy, LLC	(1,902,649)		(1,902,649)
Balance - at Apr. 30, 2019	68,379,405	20,350,533	88,729,938
Balance - at Oct. 31, 2019	65,468,635	19,215,914	84,684,549
Changes in Members' Equity
Acquisition of non-controlling interest	(78,817)	(2,146,183)	(2,225,000)
Net loss attributable to non-controlling interest		(1,185,371)	(1,185,371)
Net loss attributable to Granite Falls Energy, LLC	(1,500,699)		(1,500,699)
Balance - at Jan. 31, 2020	63,889,119	15,884,360	79,773,479
Balance - at Oct. 31, 2019	65,468,635	19,215,914	84,684,549
Changes in Members' Equity
Net loss attributable to Granite Falls Energy, LLC			(13,383,886)
Balance - at Apr. 30, 2020	52,005,932	12,724,135	64,730,067
Balance - at Jan. 31, 2020	63,889,119	15,884,360	79,773,479
Changes in Members' Equity
Net loss attributable to non-controlling interest		(3,160,225)	(3,160,225)
Net loss attributable to Granite Falls Energy, LLC	(11,883,187)		(11,883,187)
Balance - at Apr. 30, 2020	$ 52,005,932	$ 12,724,135	$ 64,730,067

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Cash Flows - USD ($)	6 Months Ended
	Apr. 30, 2020	Apr. 30, 2019
Cash Flows from Operating Activities:
Net loss	$ (17,729,482)	$ (6,975,883)
Adjustments to reconcile net loss to net cash used in operations:
Depreciation and amortization	4,690,652	4,720,009
Change in fair value of derivative instruments	1,140,186	(288,819)
Loss on equity method investments	591,489
Changes in operating assets and liabilities:
Commodity derivative instruments	(434,707)	1,225,222
Accounts receivable	7,268,102	(18,682)
Inventory	267,663	2,589,078
Prepaid expenses and other current assets	(558,117)	(561,142)
Accounts payable	(9,390,656)	(5,314,204)
Accrued expenses	1,688,599	12,860
Accrued railcar rehabilitation costs	22,962
Net Cash Used In Operating Activities	(12,443,309)	(4,611,561)
Cash Flows from Investing Activities:
Payments for capital expenditures	(613,867)	(392,707)
Net Cash Used in Investing Activities	(613,867)	(392,707)
Cash Flows from Financing Activities:
Checks drawn in excess of bank balances	807,756
Proceeds from paycheck protection program loan	1,299,593
Proceeds from long-term debt	17,786,740
Payments on long-term debt	(12,191,374)	(11,901)
Acquisition of non-controlling interest	(2,000,000)
Member distributions paid		(1,224,226)
Net Cash Provided by (Used in) Financing Activities	5,702,715	(1,236,127)
Net Decrease in Cash and Restricted Cash	(7,354,461)	(6,240,395)
Cash and Restricted Cash - Beginning of Period	13,574,290	14,901,091
Cash and Restricted Cash - End of Period	6,219,829	8,660,696
Cash paid during the period for:
Interest expense	217,112	194,189
Supplemental Disclosure of Non-Cash Investing and Financing Activities
Capital expenditures and construction in process included in accounts payable	$ 13,487	$ 29,464

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Cash Flows (Parenthetical) - USD ($)	Apr. 30, 2020	Oct. 31, 2019	Apr. 30, 2019	Oct. 31, 2018
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents [Abstract]
Cash - Balance Sheet	$ 5,868,761	$ 13,521,774	$ 8,260,821
Restricted Cash - Balance Sheet	351,068	52,516	399,875
Cash and Restricted Cash	$ 6,219,829	$ 13,574,290	$ 8,660,696	$ 14,901,091

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	6 Months Ended
	Apr. 30, 2020
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. Beginning December 11, 2019, HLBE owns a 100% 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. At October 31, 2019, HLBE held a 73% interest in Agrinatural. 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 April 30, 2020 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, owned approximately 73% of Agrinatural as of October 31, 2019. 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 through December 11, 2019 when the remaining non-controlling interest was acquired. 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, 2019, 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. 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 rehabilitation costs, 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 reflects an amount that the Company expects to be entitled to in exchange for those products, 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. Net realizable value is the estimated selling prices in the ordinary course of business less reasonably predictable costs of completion, disposal, and transportation. Inventory consists of raw materials, work in process, finished goods, and supplies. Corn is the primary raw material along with other raw materials. Finished goods consist of ethanol, distillers' grains, and corn oil. Derivative Instruments From time to time the Company enters into derivative transactions to hedge its exposures to commodity price fluctuations. The Company is required to record these derivatives 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 The Company has investment interests in two companies in related industries. 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 In February 2016, the Financial Accounting Standards Board (FASB) issued new guidance on accounting for leases under Accounting Standards Codification 842 (ASC 842). Under the new guidance, lessees are required to recognize the following for all leases (with the exception of short-term leases) at the commencement date: (1) a lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted cash flow basis; and (2) a “right of use” asset, which is an asset that represents the lessee’s right to use the specified asset for the lease term. Lease expense under the new guidance is substantially the same as prior to the adoption. See Note 8 for further information.

RISKS AND UNCERTAINTIES

RISKS AND UNCERTAINTIES	6 Months Ended
	Apr. 30, 2020
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. 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. The Company’s risk management program is used to protect against the price volatility of these commodities. The Company, and the ethanol industry as a whole, experienced significant adverse conditions throughout most of 2018 and 2019, and thus far into 2020, as a result of industry-wide record low ethanol prices due to reduced demand and high industry inventory levels. These factors, which are compounded by the recent impact of the novel coronavirus (“COVID-19”), resulted and continue to result in negative operating margins, lower cash flow from operations and net operating losses, which included write downs of inventory and impairment of corn forward purchase contracts of approximately $179,000 for the six months ended April 30, 2020. In response to the low margin environment, GFE idled its ethanol production from on or about April 3, 2020 through approximately May 18, 2020. The Company continues to monitor COVID-19 developments in order to determine whether further adjustments to production are warranted. The Company believes its cash on hand, available debt from its lender, and additional debt with its current lender will provide sufficient liquidity to meets its anticipated working capital, debt service and other liquidity needs through the next twelve months. If market conditions worsen affecting our ability to profitably operate the plant or if we are unable to transport ethanol, we may be forced to further idle ethanol production altogether.

REVENUE

REVENUE	6 Months Ended
	Apr. 30, 2020
REVENUE
REVENUE	3. REVENUE 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 and six months ended April 30, 2020 and 2019: Three Months Ended April 30, 2020 Ethanol Production Natural Gas Pipeline Total Ethanol $ $ — $ Distillers’ Grains — Corn Oil — Other — Natural Gas — Total Revenues $ $ $ Three Months Ended April 30, 2019 Ethanol Production Natural Gas Pipeline Total Ethanol $ $ — $ Distillers’ Grains — Corn Oil — Other — Natural Gas — Total Revenues $ $ $ Six Months Ended April 30, 2020 Ethanol Production Natural Gas Pipeline Total Ethanol $ $ — $ Distillers’ Grains — Corn Oil — Other — Natural Gas — Total Revenues $ $ $ Six Months Ended April 30, 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. The Company has contractual payment terms with natural gas customers of 20 days. 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	6 Months Ended
	Apr. 30, 2020
INVENTORY
INVENTORY	4. INVENTORY Inventories consist of the following: April 30, 2020 October 31, 2019 (unaudited) Raw materials $ 4,135,879 $ 3,253,361 Supplies 3,203,833 3,330,513 Work in process 1,083,206 1,434,552 Finished goods 5,112,444 5,784,599 Totals $ 13,535,362 $ 13,803,025 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 $949,000 and $1,488,000 for the three months ended April 30, 2020 and 2019, respectively, and approximately $2,151,000 and $765,000 for the six months ended April 30, 2020 and 2019, 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 $1,087,000 and $71,000 for the three months ended April 30, 2020 and 2019, respectively, and approximately $1,213,000 and $95,000 for the six months ended April 30, 2020 and 2019, respectively.

DERIVATIVE INSTRUMENTS

DERIVATIVE INSTRUMENTS	6 Months Ended
	Apr. 30, 2020
DERIVATIVE INSTRUMENTS
DERIVATIVE INSTRUMENTS	5. DERIVATIVE INSTRUMENTS As of April 30, 2020, the total notional amount of GFE’s outstanding corn derivative instruments was approximately 2,640,000 bushels, comprised of long corn futures positions on 150,000 bushels that were entered into to hedge forecasted ethanol sales through July 2020, and short corn futures positions on 1,185,000 bushels that were entered into to hedge forecasted corn purchases through December 2022. Additionally, there are corn options positions of 1,305,000 bushels through December 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 April 30, 2020, the total notional amount of HLBE’s outstanding corn derivative instruments was approximately 1,246,000 bushels, comprised of long futures positions on 50,000 bushels that were entered into to hedge forecasted ethanol sales through July 2020 and short corn futures positions on 246,000 bushels that were entered into to hedge forecasted corn purchases through December 2021. Additionally, there are corn options positions of 950,000 bushels through December 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 April 30, 2020, GFE had approximately $40,000 due to derivatives held by a broker recorded as a component of accounts payable and did not have any cash collateral (restricted cash) related to derivatives held by a broker. As of April 30, 2020, HLBE had approximately $351,000 of cash collateral (restricted cash) related to derivatives held by a broker. The following tables provide details regarding the Company's derivative instruments at April 30, 2020, none of which were designated as hedging instruments: Consolidated Balance Sheet Location Assets Liabilities Corn contracts - GFE Commodity derivative instruments $ 359,269 $ — Corn contracts - HLBE Commodity derivative instruments — 227,550 Ethanol contracts - HLBE Commodity derivative instruments — 14,100 Totals $ 359,269 $ 241,650 As of October 31, 2019, the total notional amount of GFE’s outstanding corn derivative instruments was approximately 7,495,000 bushels, comprised of long corn futures positions on 3,345,000 bushels that were entered into to hedge forecasted ethanol sales through July 2020, and short corn futures positions on 4,150,000 bushels that were entered into to hedge forecasted corn purchases through December 2022. Additionally, there are corn options positions of 4,000,000 bushels 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, 2019, GFE did not have any cash collateral (restricted cash) related to derivatives held by a broker. As of October 31, 2019, the total notional amount of HLBE’s outstanding corn derivative instruments was approximately 5,398,000 bushels, comprised of long corn futures positions on 2,131,000 bushels that were entered into to hedge forecasted ethanol sales through July 2020, and short corn futures positions on 3,267,000 bushels that were entered into to hedge forecasted corn purchases through December 2021. Additionally, there are corn options positions of 4,000,000 bushels 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, 2019, HLBE had approximately $52,000 in 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, 2019, none of which were designated as hedging instruments: Consolidated Balance Sheet Location Assets Liabilities Corn contracts - GFE Commodity derivative instruments $ 612,713 $ — Corn contracts - HLBE Commodity derivative instruments 20,060 — Ethanol contracts - GFE Commodity derivative instruments 114,562 — Ethanol contracts - HLBE Commodity derivative instruments 75,763 — Totals $ 823,098 $ — 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 April 30, Six Months Ended April 30, of Operations Location 2020 2019 2020 2019 Corn contracts Cost of Goods Sold $ (563,645) $ 281,424 $ (723,863) $ 325,652 Ethanol contracts Revenues (205,930) (36,833) (416,323) (36,833) Total gain (loss) $ (769,575) $ 244,591 $ (1,140,186) $ 288,819

FAIR VALUE

FAIR VALUE	6 Months Ended
	Apr. 30, 2020
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 April 30, 2020: Fair Value Measurement Using Quoted Prices Significant Other Significant Carrying Amount in in Active Markets Observable Inputs Unobservable Inputs Financial Assets: Consolidated Balance Sheet Fair Value (Level 1) (Level 2) (Level 3) Commodity Derivative Instruments - Corn $ 359,269 $ 359,269 $ 359,269 $ — $ — Financial Liabilities: Commodity Derivative Instruments - Ethanol $ 14,100 $ 14,100 $ 14,100 $ — $ — Commodity Derivative Instruments - Corn $ 227,550 $ 227,550 $ 227,550 $ — $ — The following table provides information on those derivative assets and liabilities measured at fair value on a recurring basis at October 31, 2019: Fair Value Measurement Using Quoted Prices Significant Other Significant Carrying Amount in in Active Markets Observable Inputs Unobservable Inputs Financial Assets: Consolidated Balance Sheet Fair Value (Level 1) (Level 2) (Level 3) Commodity Derivative Instruments - Corn $ 632,773 $ 632,773 $ 632,773 $ — $ — Commodity Derivative Instruments - Ethanol $ 190,325 $ 190,325 $ 190,325 $ — $ — The Company determines the fair value of commodity derivative instruments by obtaining fair value measurements from an independent pricing service. The fair value measurements consider observable data that may include dealer quotes and live trading levels from the Chicago Board of Trade market and New York Mercantile Exchange.

DEBT FACILITIES

DEBT FACILITIES	6 Months Ended
	Apr. 30, 2020
DEBT FACILITIES
DEBT FACILITIES	7. DEBT FACILITIES Debt financing consists of the following: April 30, 2020 October 31, 2019 (unaudited) GRANITE FALLS ENERGY: Seasonal revolving loan, see terms below. — — Term note payable to Project Hawkeye, see terms below. 6,875,000 7,410,714 SBA Paycheck Protection Loan 703,900 — HERON LAKE BIOENERGY: Amended revolving term note payable to lending institution, see terms below. 6,131,080 — 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. 634,180 634,180 SBA Paycheck Protection Loan 595,693 — Totals 14,939,853 8,044,894 Less: amounts due within one year 1,405,406 1,405,406 Net long-term debt $ 13,534,447 $ 6,639,488 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 April 30, 2020. Therefore, the aggregate principal amount available for borrowing by GFE under this seasonal revolving loan at April 30, 2020 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 3.08% and 4.52% at April 30, 2020 and October 31, 2019, 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. During the second fiscal quarter of 2020, the credit facility was amended to reduce the working capital covenant to $9 million, from the original $10 million working capital covenant, during the period from March 31, 2020 through September 30, 2020, and increasing to $10 million beginning October 1, 2020. Additionally, the current portion of leases will be excluded from the calculation of current liabilities. 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. For the fiscal year ended October 31, 2019, GFE had an event of non-compliance with the debt service coverage ratio as defined in the credit facility. In December 2019, GFE received a waiver from its lender waiving this event of non-compliance. In March 2020 and April 2020, GFE had events of non-compliance related to the minimum working capital requirement as defined in the credit facility. Additionally, the Company anticipates an event of non-compliance for the period ended May 31, 2020. The Company has obtained a waiver from its lender for the event of non-compliance for the month ended March 31, 2020. The Company is working with its lender to obtain a waiver related to the event of non-compliance for the month ended April 30, 2020 and the expected event of non-compliance for the month ended May 31, 2020 and expects to receive such waivers. 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 the 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 3.55% and 4.82% at April 30, 2020 and October 31, 2019 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. SBA Paycheck Protection Program Loan In March 2020, Congress passed the Paycheck Protection Program, authorizing loans to small businesses for use in paying employees that they continue to employ throughout the COVID-19 pandemic and for rent, utilities and interest on mortgages. Loans obtained through the Paycheck Protection Program are eligible to be forgiven as long as the proceeds are used for qualifying purposes and certain other conditions are met. On April 17, 2020, the Company received a loan in the amount of $703,900 through the Paycheck Protection Program. Management expects that the entire loan will be used for payroll, utilities and interest; therefore, management anticipates that the loan will be substantially forgiven. To the extent it is not forgiven, the Company would be required to repay that portion at an interest rate of 1% over a period of two years, beginning November 2020 with a final installment in April 2022. Heron Lake BioEnergy Amended Credit Facility The 2020 Credit Facility includes an amended and restated revolving term loan with an $8,000,000 principal commitment. This loan replaces the amended revolving term note and seasonal revolving loan made under the 2018 Credit Facility. The loan is secured by substantially all of HLBE’s assets, including a subsidiary guarantee. The 2020 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. During the second fiscal quarter of 2020, the 2020 Credit Facility was amended to reduce the working capital covenant to $8 million, from the original $10 million working capital covenant, through the period ending December 31, 2020, and increasing to $10 million beginning January 1, 2021. Additionally, the current portion of leases will be excluded from the calculation of current liabilities. 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 seasonal line of credit and/or the imposition of fees, charges, or penalties. In March 2020 and April 2020, HLBE had events of non-compliance related to the minimum working capital requirement as defined in the 2020 Credit Facility. Additionally, HLBE anticipates an event of non-compliance for the period ended May 31, 2020. HLBE has obtained waivers from its lender for these events of noncompliance. As part of the 2020 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. Under the terms of the amended revolving term loan, HLBE may borrow, repay, and reborrow up to the aggregate principal commitment amount of $8,000,000. Final payment of amounts borrowed under the amended revolving term loan is due December 1, 2022. 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 totaled 3.43% at April 30, 2020. 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 0.500% per annum, payable monthly in arrears. SBA Paycheck Protection Program Loan In March 2020, Congress passed the Paycheck Protection Program, authorizing loans to small businesses for use in paying employees that they continue to employ throughout the COVID-19 pandemic and for rent, utilities and interest on mortgages. Loans obtained through the Paycheck Protection Program are eligible to be forgiven as long as the proceeds are used for qualifying purposes and certain other conditions are met. On April 18, 2020, HLBE received a loan in the amount of $595,693 through the Paycheck Protection Program. Management expects that the entire loan will be used for payroll, utilities and interest; therefore, management anticipates that the loan will be substantially forgiven. To the extent it is not forgiven, HLBE would be required to repay that portion at an interest rate of 1% over a period of two years, with principal repayment installments in May 2021 with a final installment in May 2022. Estimated annual maturities of debt at April 30, 2020, are as follows based on the most recent debt agreements: 2021 $ 1,405,406 2022 8,802,305 2023 1,071,428 2024 1,071,428 2025 1,071,429 Thereafter 1,517,857 Total debt $ 14,939,853

LEASES

LEASES	6 Months Ended
	Apr. 30, 2020
LEASES
LEASES	8. LEASES Adoption of ASC 842 As discussed in Note 1, on November 1, 2019, the Company adopted the provisions of ASC 842 using the modified retrospective approach, which applies the provisions of ASC 842 upon adoption, with no change to prior periods. This adoption resulted in the Company recognizing initial right of use assets and lease liabilities of approximately $23.6 million at November 1, 2019. The adoption did not have a significant impact on the Company’s statement of operations. Upon the initial adoption of ASC 842, the Company elected the following practical expedients allowable under the guidance: not to reassess whether any expired or existing contracts are or contain leases; not to reassess the lease classification for any expired or existing leases; not to reassess initial direct costs for any existing leases. Additionally, the Company elected the short-term lease exemption policy, applying the requirements of ASC 842 to only long-term (greater than one year) leases. The Company leases rail cars for its facility to transport ethanol and dried distillers’ grains to its end customers. Operating lease right of use assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. The Company uses its estimated incremental borrowing rate, unless an implicit rate is readily determinable, as the discount rate for each lease in determining the present value of lease payments. For the three months ended April 30, 2020, the Company’s weighted average discount rate was 4.87%. Operating lease expense is recognized on a straight-line basis over the lease term. The Company determines if an arrangement is a lease or contains a lease at inception. The Company’s leases have remaining terms of approximately one to seven years. For the six months ended April 30, 2020, the weighted average remaining lease term was four years. The Company elected to use a portfolio approach for lease classification, which allows for an entity to group together leases with similar characteristics provided that its application does not create a material difference when compared to accounting for the leases at a contract level. For railcar leases, the Company elected to combine the railcars within each rider and account for each rider as an individual lease. The following table summarizes the remaining annual maturities of the Company’s operating lease liabilities as of April 30, 2020: 2021 $ 4,537,800 2022 4,348,300 2023 4,251,000 2024 3,759,000 2025 3,163,800 Thereafter 4,194,550 Totals 24,254,450 Less: Amount representing interest 3,080,567 Lease liabilities $ 21,173,883 For the three and six months ended April 30, 2020, GFE recorded operating lease costs for these leases of approximately $638,000 and $1,279,000, respectively, in cost of goods sold in the Company’s statement of operations, which approximates the cash paid for the period. For the three and six months ended April 30, 2020, HLBE recorded operating lease costs for these leases of approximately $490,000 and $1,021,000, respectively, in cost of goods sold in the Company’s statement of operations, which approximates the cash paid for the period.

MEMBERS' EQUITY

MEMBERS' EQUITY	6 Months Ended
	Apr. 30, 2020
MEMBERS' EQUITY
MEMBERS' EQUITY	9. 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 April 30, 2020 and October 31, 2019, 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. Heron Lake BioEnergy On December 11, 2019, HLBE Pipeline Company acquired the remaining non-controlling interest of Agrinatural for a total price of $2.225 million. A deposit of $225,000 was paid in October 2019 and recorded within other assets at October 31, 2019, and the remaining amount was paid on December 11, 2019. The change of interest is recorded as an equity transaction in accordance with ASC 805.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	6 Months Ended
	Apr. 30, 2020
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES	10. COMMITMENTS AND CONTINGENCIES Corn Purchases - Members GFE purchased corn from board members of approximately $526,000 and $605,000 for the three months ended April 30, 2020 and 2019, respectively, and approximately $840,000 and $1,954,000 for the six months ended April 30, 2020 and 2019, respectively. HLBE purchased corn from board members of approximately $750,000 and $2,636,000 for the three months ended April 30, 2020 and 2019, respectively, and approximately $5,815,000 and $4,585,000 for the six months ended April 30, 2020 and 2019, respectively. Corn Forward Contracts At April 30, 2020, GFE had cash and basis contracts for forward corn purchase commitments for approximately 3,338,000 bushels for deliveries through December 2022. Given the uncertainty of future ethanol and corn prices, GFE 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, with respect to GFE, an impairment loss of $179,000 existed at April 30, 2020, and no impairment loss existed at or October 31, 2019. At April 30, 2020, HLBE had cash and basis contracts for forward corn purchase commitments for approximately 5,613,000 bushels for deliveries through December 2021. Given the uncertainty of future ethanol and corn prices, 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, with respect to HLBE, an impairment loss of $83,000 existed at April 30, 2020, and no impairment loss existed at or October 31, 2019. Ethanol Forward Contracts At April 30, 2020, GFE had fixed and basis contracts to sell approximately $4,626,000 of ethanol for various delivery periods through June 2020, which approximates 48% of its anticipated ethanol sales for that period. At April 30, 2020, HLBE had no fixed or basis contracts to sell ethanol. Distillers' Grain Forward Contracts At April 30, 2020, GFE had forward contracts to sell approximately $1,467,000 of distillers’ grain for deliveries through June 2020. At April 30, 2020, HLBE had forward contracts to sell approximately $557,000 of distillers’ grains for delivery through June 2020. Corn Oil Forward Contracts At April 30, 2020, GFE had forward contracts to sell approximately $111,000 of corn oil for delivery through May 2020. At April 30, 2020, HLBE had forward contracts to sell approximately $131,000 of corn oil for delivery through May 2020. Rail Car Rehabilitation Costs GFE leases 75 hopper rail cars under a multi-year agreement which ends in November 2025. Under the agreement, GFE is required to pay to rehabilitate each car for “damage” that is considered to be other than normal wear and tear upon turn in of the car(s) at the termination of the lease. Prior to the year ending October 31, 2019, GFE believed ongoing repairs resulted in an insignificant future rehabilitation expense. During the year ending October 31, 2019, based on new information, we re-evaluated our assumptions and believe that it is probable that we may be assessed for damages incurred. At April 30, 2020 and October 31, 2019 GFE has recorded an estimated liability totaling $825,000. GFE accrues the estimated cost of railcar damages over the term of the lease as the cost of damages are incurred. HLBE leases 50 hopper rail cars under a multi-year agreement which ends in May 2027. Under the agreement, HLBE is required to pay to rehabilitate each car for “damage” that is considered to be other than normal wear and tear upon turn in of the car(s) at the termination of the lease. Prior to the year ending October 31, 2019, the Company believed ongoing repairs resulted in an insignificant future rehabilitation expense. During the year ending October 31, 2019, based on new information, we re-evaluated our assumptions and believe that it is probable that we may be assessed for damages incurred. Company management has estimated total costs to rehabilitate the cars at April 30, 2020 to be approximately $574,000. During the three and six months ended April 30, 2020, the Company has recorded an expense in cost of goods of approximately $12,000 and $23,000, respectively.

SUMMARY OF SIGNIFICANT ACCOUN_2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	6 Months Ended
	Apr. 30, 2020
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. Beginning December 11, 2019, HLBE owns a 100% 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. At October 31, 2019, HLBE held a 73% interest in Agrinatural. 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 April 30, 2020 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, owned approximately 73% of Agrinatural as of October 31, 2019. 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 through December 11, 2019 when the remaining non-controlling interest was acquired. 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, 2019, 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.
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 rehabilitation costs, 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 reflects an amount that the Company expects to be entitled to in exchange for those products, 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. Net realizable value is the estimated selling prices in the ordinary course of business less reasonably predictable costs of completion, disposal, and transportation. Inventory consists of raw materials, work in process, finished goods, and supplies. Corn is the primary raw material along with other raw materials. Finished goods consist of ethanol, distillers' grains, and corn oil.
Derivative Instruments	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 The Company has investment interests in two companies in related industries. 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 In February 2016, the Financial Accounting Standards Board (FASB) issued new guidance on accounting for leases under Accounting Standards Codification 842 (ASC 842). Under the new guidance, lessees are required to recognize the following for all leases (with the exception of short-term leases) at the commencement date: (1) a lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted cash flow basis; and (2) a “right of use” asset, which is an asset that represents the lessee’s right to use the specified asset for the lease term. Lease expense under the new guidance is substantially the same as prior to the adoption. See Note 8 for further information.

REVENUE (Tables)

REVENUE (Tables)	6 Months Ended
	Apr. 30, 2020
REVENUE
Schedule of disaggregated revenue by source	Three Months Ended April 30, 2020 Ethanol Production Natural Gas Pipeline Total Ethanol $ $ — $ Distillers’ Grains — Corn Oil — Other — Natural Gas — Total Revenues $ $ $ Three Months Ended April 30, 2019 Ethanol Production Natural Gas Pipeline Total Ethanol $ $ — $ Distillers’ Grains — Corn Oil — Other — Natural Gas — Total Revenues $ $ $ Six Months Ended April 30, 2020 Ethanol Production Natural Gas Pipeline Total Ethanol $ $ — $ Distillers’ Grains — Corn Oil — Other — Natural Gas — Total Revenues $ $ $ Six Months Ended April 30, 2019 Ethanol Production Natural Gas Pipeline Total Ethanol $ $ — $ Distillers’ Grains — Corn Oil — Other — Natural Gas — Total Revenues $ $ $

INVENTORY (Tables)

INVENTORY (Tables)	6 Months Ended
	Apr. 30, 2020
INVENTORY
Schedule of Inventory	April 30, 2020 October 31, 2019 (unaudited) Raw materials $ 4,135,879 $ 3,253,361 Supplies 3,203,833 3,330,513 Work in process 1,083,206 1,434,552 Finished goods 5,112,444 5,784,599 Totals $ 13,535,362 $ 13,803,025

DERIVATIVE INSTRUMENTS (Tables)

DERIVATIVE INSTRUMENTS (Tables)	6 Months Ended
	Apr. 30, 2020
DERIVATIVE INSTRUMENTS
Schedule of derivative instruments in Statements of Financial Position	The following tables provide details regarding the Company's derivative instruments at April 30, 2020, none of which were designated as hedging instruments: Consolidated Balance Sheet Location Assets Liabilities Corn contracts - GFE Commodity derivative instruments $ 359,269 $ — Corn contracts - HLBE Commodity derivative instruments — 227,550 Ethanol contracts - HLBE Commodity derivative instruments — 14,100 Totals $ 359,269 $ 241,650 As of October 31, 2019, the total notional amount of GFE’s outstanding corn derivative instruments was approximately 7,495,000 bushels, comprised of long corn futures positions on 3,345,000 bushels that were entered into to hedge forecasted ethanol sales through July 2020, and short corn futures positions on 4,150,000 bushels that were entered into to hedge forecasted corn purchases through December 2022. Additionally, there are corn options positions of 4,000,000 bushels 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, 2019, GFE did not have any cash collateral (restricted cash) related to derivatives held by a broker. As of October 31, 2019, the total notional amount of HLBE’s outstanding corn derivative instruments was approximately 5,398,000 bushels, comprised of long corn futures positions on 2,131,000 bushels that were entered into to hedge forecasted ethanol sales through July 2020, and short corn futures positions on 3,267,000 bushels that were entered into to hedge forecasted corn purchases through December 2021. Additionally, there are corn options positions of 4,000,000 bushels 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, 2019, HLBE had approximately $52,000 in 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, 2019, none of which were designated as hedging instruments: Consolidated Balance Sheet Location Assets Liabilities Corn contracts - GFE Commodity derivative instruments $ 612,713 $ — Corn contracts - HLBE Commodity derivative instruments 20,060 — Ethanol contracts - GFE Commodity derivative instruments 114,562 — Ethanol contracts - HLBE Commodity derivative instruments 75,763 — Totals $ 823,098 $ —
Schedule of gains (losses) from derivative instruments	Consolidated Statement Three Months Ended April 30, Six Months Ended April 30, of Operations Location 2020 2019 2020 2019 Corn contracts Cost of Goods Sold $ (563,645) $ 281,424 $ (723,863) $ 325,652 Ethanol contracts Revenues (205,930) (36,833) (416,323) (36,833) Total gain (loss) $ (769,575) $ 244,591 $ (1,140,186) $ 288,819

FAIR VALUE (Tables)

FAIR VALUE (Tables)	6 Months Ended
	Apr. 30, 2020
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 April 30, 2020: Fair Value Measurement Using Quoted Prices Significant Other Significant Carrying Amount in in Active Markets Observable Inputs Unobservable Inputs Financial Assets: Consolidated Balance Sheet Fair Value (Level 1) (Level 2) (Level 3) Commodity Derivative Instruments - Corn $ 359,269 $ 359,269 $ 359,269 $ — $ — Financial Liabilities: Commodity Derivative Instruments - Ethanol $ 14,100 $ 14,100 $ 14,100 $ — $ — Commodity Derivative Instruments - Corn $ 227,550 $ 227,550 $ 227,550 $ — $ — The following table provides information on those derivative assets and liabilities measured at fair value on a recurring basis at October 31, 2019: Fair Value Measurement Using Quoted Prices Significant Other Significant Carrying Amount in in Active Markets Observable Inputs Unobservable Inputs Financial Assets: Consolidated Balance Sheet Fair Value (Level 1) (Level 2) (Level 3) Commodity Derivative Instruments - Corn $ 632,773 $ 632,773 $ 632,773 $ — $ — Commodity Derivative Instruments - Ethanol $ 190,325 $ 190,325 $ 190,325 $ — $ —

DEBT FACILITIES (Tables)

DEBT FACILITIES (Tables)	6 Months Ended
	Apr. 30, 2020
DEBT FACILITIES
Schedule of debt financing	April 30, 2020 October 31, 2019 (unaudited) GRANITE FALLS ENERGY: Seasonal revolving loan, see terms below. — — Term note payable to Project Hawkeye, see terms below. 6,875,000 7,410,714 SBA Paycheck Protection Loan 703,900 — HERON LAKE BIOENERGY: Amended revolving term note payable to lending institution, see terms below. 6,131,080 — 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. 634,180 634,180 SBA Paycheck Protection Loan 595,693 — Totals 14,939,853 8,044,894 Less: amounts due within one year 1,405,406 1,405,406 Net long-term debt $ 13,534,447 $ 6,639,488
Schedule of annual maturities of debt	2021 $ 1,405,406 2022 8,802,305 2023 1,071,428 2024 1,071,428 2025 1,071,429 Thereafter 1,517,857 Total debt $ 14,939,853

LEASES (Tables)

LEASES (Tables)	6 Months Ended
	Apr. 30, 2020
LEASES
Summary of remaining annual maturities of operating lease liabilities	2021 $ 4,537,800 2022 4,348,300 2023 4,251,000 2024 3,759,000 2025 3,163,800 Thereafter 4,194,550 Totals 24,254,450 Less: Amount representing interest 3,080,567 Lease liabilities $ 21,173,883

SUMMARY OF SIGNIFICANT ACCOUN_3

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - gal gal in Millions	6 Months Ended
	Apr. 30, 2020	Dec. 11, 2019	Oct. 31, 2019
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		100.00%	73.00%

SUMMARY OF SIGNIFICANT ACCOUN_4

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Revenue Recognition (Details)	6 Months Ended
	Apr. 30, 2020company
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%

RISKS AND UNCERTAINTIES Narrati

RISKS AND UNCERTAINTIES Narrative (Details)	6 Months Ended
	Apr. 30, 2020USD ($)
Concentration Risk
Write down of inventory and impairment of purchase contract	$ 179,000

REVENUE (Details)

REVENUE (Details) - USD ($)	3 Months Ended		6 Months Ended
	Apr. 30, 2020	Apr. 30, 2019	Apr. 30, 2020	Apr. 30, 2019
Revenue Recognition
Total Revenues	$ 33,106,922	$ 49,424,390	$ 86,463,248	$ 98,799,487
Payment terms			10 days
Ethanol Production
Revenue Recognition
Total Revenues	32,870,171	49,034,031	$ 85,537,220	97,827,214
Natural Gas Pipeline
Revenue Recognition
Total Revenues	236,751	390,359	926,028	972,273
Ethanol
Revenue Recognition
Total Revenues	23,753,704	38,521,636	64,605,693	74,486,921
Ethanol | Ethanol Production
Revenue Recognition
Total Revenues	23,753,704	38,521,636	64,605,693	74,486,921
Distillers grains
Revenue Recognition
Total Revenues	7,389,829	8,651,733	17,021,121	19,221,992
Distillers grains | Ethanol Production
Revenue Recognition
Total Revenues	7,389,829	8,651,733	17,021,121	19,221,992
Corn oil
Revenue Recognition
Total Revenues	1,534,832	1,600,398	3,422,683	3,593,734
Corn oil | Ethanol Production
Revenue Recognition
Total Revenues	1,534,832	1,600,398	3,422,683	3,593,734
Other
Revenue Recognition
Total Revenues	191,806	260,264	487,723	524,567
Other | Ethanol Production
Revenue Recognition
Total Revenues	191,806	260,264	487,723	524,567
Natural Gas
Revenue Recognition
Total Revenues	236,751	390,359	$ 926,028	972,273
Payment terms			20 days
Natural Gas | Natural Gas Pipeline
Revenue Recognition
Total Revenues	$ 236,751	$ 390,359	$ 926,028	$ 972,273

INVENTORY (Details)

INVENTORY (Details) - USD ($)	3 Months Ended		6 Months Ended
	Apr. 30, 2020	Apr. 30, 2019	Apr. 30, 2020	Apr. 30, 2019	Oct. 31, 2019
Inventory
Raw materials	$ 4,135,879		$ 4,135,879		$ 3,253,361
Supplies	3,203,833		3,203,833		3,330,513
Work in process	1,083,206		1,083,206		1,434,552
Finished goods	5,112,444		5,112,444		5,784,599
Totals	13,535,362		13,535,362		$ 13,803,025
Ethanol
Inventory
Loss on inventories	949,000	$ 1,488,000	2,151,000	$ 765,000
Corn
Inventory
Loss on inventories	$ 1,087,000	$ 71,000	$ 1,213,000	$ 95,000

DERIVATIVE INSTRUMENTS - Assets

DERIVATIVE INSTRUMENTS - Assets And Liabilities (Details)	6 Months Ended	12 Months Ended
	Apr. 30, 2020USD ($)bu	Oct. 31, 2019USD ($)bu	Apr. 30, 2019USD ($)
Derivatives, Fair Value
Cash collateral (restricted cash)	$ 351,068	$ 52,516	$ 399,875
Financial Assets	359,269	$ 823,098
Derivative liabilities	241,650
Accounts Payable
Derivatives, Fair Value
Derivative liabilities held by broker	$ 40,000
Granite Falls Energy, LLC Excluding Heron Lake BioEnergy, LLC | Corn Contracts
Derivatives, Fair Value
Total nonmonetary notional amount outstanding | bu	2,640,000	7,495,000
Additional nonmonetary notional amount | bu	1,305,000	4,000,000
Granite Falls Energy, LLC Excluding Heron Lake BioEnergy, LLC | Derivatives held by a broker
Derivatives, Fair Value
Cash collateral (restricted cash)	$ 0	$ 0
Granite Falls Energy, LLC Excluding Heron Lake BioEnergy, LLC | Long/Purchase position | Corn Contracts
Derivatives, Fair Value
Total nonmonetary notional amount outstanding | bu	150,000	3,345,000
Granite Falls Energy, LLC Excluding Heron Lake BioEnergy, LLC | Short/Sale position | Corn Contracts
Derivatives, Fair Value
Total nonmonetary notional amount outstanding | bu	1,185,000	4,150,000
Heron Lake BioEnergy, LLC | Corn Contracts
Derivatives, Fair Value
Total nonmonetary notional amount outstanding | bu	1,246,000	5,398,000
Additional nonmonetary notional amount | bu	950,000	4,000,000
Heron Lake BioEnergy, LLC | Derivatives held by a broker
Derivatives, Fair Value
Cash collateral (restricted cash)	$ 351,000	$ 52,000
Heron Lake BioEnergy, LLC | Long/Purchase position | Corn Contracts
Derivatives, Fair Value
Total nonmonetary notional amount outstanding | bu	50,000	2,131,000
Heron Lake BioEnergy, LLC | Short/Sale position | Corn Contracts
Derivatives, Fair Value
Total nonmonetary notional amount outstanding | bu	246,000	3,267,000
Not Designated as Hedging Instruments
Derivatives, Fair Value
Financial Assets	$ 359,269	$ 823,098
Derivative liabilities	241,650
Not Designated as Hedging Instruments | Granite Falls Energy, LLC Excluding Heron Lake BioEnergy, LLC | Corn Contracts
Derivatives, Fair Value
Financial Assets	359,269	612,713
Not Designated as Hedging Instruments | Granite Falls Energy, LLC Excluding Heron Lake BioEnergy, LLC | Ethanol Contracts
Derivatives, Fair Value
Financial Assets		114,562
Not Designated as Hedging Instruments | Heron Lake BioEnergy, LLC | Corn Contracts
Derivatives, Fair Value
Financial Assets		20,060
Derivative liabilities	227,550
Not Designated as Hedging Instruments | Heron Lake BioEnergy, LLC | Ethanol Contracts
Derivatives, Fair Value
Financial Assets		$ 75,763
Derivative liabilities	$ 14,100

DERIVATIVE INSTRUMENTS - Income

DERIVATIVE INSTRUMENTS - Income Statement (Details) - Not Designated as Hedging Instruments - USD ($)	3 Months Ended		6 Months Ended
	Apr. 30, 2020	Apr. 30, 2019	Apr. 30, 2020	Apr. 30, 2019
Derivative Instruments, Gain (Loss)
Total gain	$ (769,575)	$ 244,591	$ (1,140,186)	$ 288,819
Cost of Goods Sold | Corn Contracts
Derivative Instruments, Gain (Loss)
Total gain	(563,645)	281,424	(723,863)	325,652
Revenues | Ethanol Contracts
Derivative Instruments, Gain (Loss)
Total gain	$ (205,930)	$ (36,833)	$ (416,323)	$ (36,833)

FAIR VALUE (Details)

FAIR VALUE (Details) - USD ($)	Apr. 30, 2020	Oct. 31, 2019
Fair value
Financial Assets	$ 359,269	$ 823,098
Financial Liabilities	241,650
Corn Contracts | Carrying Amount
Fair value
Financial Assets	359,269	632,773
Financial Liabilities	227,550
Corn Contracts | Fair Value, Measurements, Recurring | Estimate of Fair Value Measurement
Fair value
Financial Assets	359,269	632,773
Financial Liabilities	227,550
Corn Contracts | Fair Value, Inputs, Level 1 | Fair Value, Measurements, Recurring | Estimate of Fair Value Measurement
Fair value
Financial Assets	359,269	632,773
Financial Liabilities	227,550
Ethanol Contracts | Carrying Amount
Fair value
Financial Assets		190,325
Financial Liabilities	14,100
Ethanol Contracts | Fair Value, Measurements, Recurring | Estimate of Fair Value Measurement
Fair value
Financial Assets		190,325
Financial Liabilities	14,100
Ethanol Contracts | Fair Value, Inputs, Level 1 | Fair Value, Measurements, Recurring | Estimate of Fair Value Measurement
Fair value
Financial Assets		$ 190,325
Financial Liabilities	$ 14,100

DEBT FACILITIES - Granite Falls

DEBT FACILITIES - Granite Falls Energy (Details) - USD ($)	Oct. 01, 2020	Apr. 17, 2020	Sep. 08, 2017	Aug. 02, 2017	Sep. 01, 2014	Feb. 29, 2020	Apr. 30, 2020	Sep. 30, 2020	Oct. 31, 2019	Apr. 30, 2019	Aug. 31, 2014
Line of Credit Facility
Proceeds from long-term debt							$ 17,786,740
Cash collateral (restricted cash)							351,068		$ 52,516	$ 399,875
Loan received							1,299,593
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
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
Working capital covenants	$ 10,000,000					$ 10,000,000		$ 9,000,000
Interest rate (as a percent)							3.08%		4.52%
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
Proceeds from long-term debt				$ 7,500,000
Interest rate (as a percent)							3.55%		4.82%
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
SBA Paycheck Protection Loan | Granite Falls Energy, LLC Excluding Heron Lake BioEnergy, LLC
Line of Credit Facility
Loan received		$ 703,900
Interest rate, stated percentage		1.00%
Repayment term		2 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 | 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) - USD ($)	Jan. 01, 2021	Apr. 18, 2020	Jan. 31, 2020	Apr. 30, 2020	Dec. 31, 2020
Line of Credit Facility
Loan received				$ 1,299,593
Heron Lake BioEnergy, LLC | Amended revolving term note payable to lending institution
Line of Credit Facility
Working capital covenants	$ 10,000,000		$ 10,000,000		$ 8,000,000
Heron Lake BioEnergy, LLC | Amended revolving term note payable to lending institution | 2020 Credit Facility
Line of Credit Facility
Credit facility maximum				$ 8,000,000
Interest rate (as a percent)				3.43%
Line of credit unused commitment fee (as a percent)				0.50%
Heron Lake BioEnergy, LLC | Amended revolving term note payable to lending institution | 2020 Credit Facility | One Month LIBOR
Line of Credit Facility
Spread above variable interest rate				3.10%
Heron Lake BioEnergy, LLC | CoBank | 2020 Credit Facility
Line of Credit Facility
Annual fee				$ 2,500
Heron Lake BioEnergy, LLC | SBA Paycheck Protection Loan
Line of Credit Facility
Loan received		$ 595,693
Interest rate, stated percentage		1.00%
Repayment term		2 years

DEBT FACILITIES (Details)

DEBT FACILITIES (Details) - USD ($)	6 Months Ended	12 Months Ended
	Apr. 30, 2020	Oct. 31, 2019	Apr. 18, 2020	Apr. 17, 2020
Line of Credit Facility
Long-term Debt	$ 14,939,853	$ 8,044,894
Less: amounts due within one year	1,405,406	1,405,406
Net long term debt	13,534,447	6,639,488
Term note payable to Project Hawkeye | Granite Falls Energy, LLC Excluding Heron Lake BioEnergy, LLC
Line of Credit Facility
Long-term Debt	6,875,000	7,410,714
SBA Paycheck Protection Loan | Granite Falls Energy, LLC Excluding Heron Lake BioEnergy, LLC
Line of Credit Facility
Long-term Debt	703,900
Interest rate (as a percent)				1.00%
SBA Paycheck Protection Loan | Heron Lake BioEnergy, LLC
Line of Credit Facility
Long-term Debt	595,693
Interest rate (as a percent)			1.00%
Amended revolving term note payable to lending institution
Line of Credit Facility
Long-term Debt	6,131,080
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	634,180	634,180
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

DEBT FACILITIES - Estimated Ann

DEBT FACILITIES - Estimated Annual Maturities (Details) - USD ($)	Apr. 30, 2020	Oct. 31, 2019
DEBT FACILITIES
2021	$ 1,405,406
2022	8,802,305
2023	1,071,428
2024	1,071,428
2025	1,071,429
Thereafter	1,517,857
Long-term Debt	$ 14,939,853	$ 8,044,894

LEASES (Details)

LEASES (Details) - USD ($)	3 Months Ended	6 Months Ended
	Apr. 30, 2020	Apr. 30, 2020	Nov. 01, 2019
Leases
Right of use assets	$ 21,173,883	$ 21,173,883
Lease liabilities	$ 21,173,883	$ 21,173,883
Lease, Practical Expedients, Package [true false]		true
Weighted average discount rate	4.87%	4.87%
Weighted average remaining lease term	4 years	4 years
Minimum
Leases
Remaining term		1 year
Maximum
Leases
Remaining term		7 years
ASU 2016-02 | Restatement
Leases
Right of use assets			$ 23,600,000
Lease liabilities			$ 23,600,000
Granite Falls Energy, LLC Excluding Heron Lake BioEnergy, LLC | Cost of Goods Sold
Leases
Operating lease costs	$ 638,000	$ 1,279,000
Heron Lake BioEnergy, LLC | Cost of Goods Sold
Leases
Operating lease costs	$ 490,000	$ 1,021,000

LEASES - Future minimum lease p

LEASES - Future minimum lease payments (Details)	Apr. 30, 2020USD ($)
Remaining annual maturities of operating lease liabilities
2021	$ 4,537,800
2022	4,348,300
2023	4,251,000
2024	3,759,000
2025	3,163,800
Thereafter	4,194,550
Totals	24,254,450
Less: Amount representing interest	3,080,567
Lease liabilities	$ 21,173,883

MEMBERS' EQUITY (Details)

MEMBERS' EQUITY (Details)	Dec. 11, 2019USD ($)	Dec. 31, 2018USD ($)$ / shares	Jan. 31, 2020USD ($)	Jan. 31, 2019USD ($)	Apr. 30, 2020item$ / sharesshares	Apr. 30, 2019$ / shares	Oct. 31, 2019USD ($)shares
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
Amount of distribution declared | $				$ 1,224,226
Remaining non-controlling interest | $			$ 2,225,000
Non-controlling Interest
Remaining non-controlling interest | $			$ 2,146,183
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 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
Amount of distribution declared | $		$ 1,224,000
Heron Lake BioEnergy, LLC
Remaining non-controlling interest | $	$ 2,225,000
Heron Lake BioEnergy, LLC | Other assets
Deposit Assets | $							$ 225,000

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Details)	3 Months Ended		6 Months Ended		12 Months Ended
	Apr. 30, 2020USD ($)item	Apr. 30, 2019USD ($)	Apr. 30, 2020USD ($)contractitembu	Apr. 30, 2019USD ($)	Oct. 31, 2019USD ($)bu
Granite Falls Energy, LLC Excluding Heron Lake BioEnergy, LLC
Commitments and contingencies
Rail Car Rehabilitation Liability			$ 825,000		$ 825,000
Granite Falls Energy, LLC Excluding Heron Lake BioEnergy, LLC | Corn Contracts
Commitments and contingencies
Quantity of commitment | bu			2,640,000		7,495,000
Granite Falls Energy, LLC Excluding Heron Lake BioEnergy, LLC | Corn Contracts | Short/Sale position
Commitments and contingencies
Quantity of commitment | bu			1,185,000		4,150,000
Granite Falls Energy, LLC Excluding Heron Lake BioEnergy, LLC | Corn Contracts | Long/Purchase position
Commitments and contingencies
Quantity of commitment | bu			150,000		3,345,000
Granite Falls Energy, LLC Excluding Heron Lake BioEnergy, LLC | Corn Contracts | Board Members
Commitments and contingencies
Amount of corn purchased	$ 526,000	$ 605,000	$ 840,000	$ 1,954,000
Granite Falls Energy, LLC Excluding Heron Lake BioEnergy, LLC | Ethanol Contracts | Short/Sale position
Commitments and contingencies
Value of commitment	4,626,000		$ 4,626,000
Anticipated sales (as a percent)			48.00%
Granite Falls Energy, LLC Excluding Heron Lake BioEnergy, LLC | Distillers' Grains | Short/Sale position
Commitments and contingencies
Value of commitment	1,467,000		$ 1,467,000
Granite Falls Energy, LLC Excluding Heron Lake BioEnergy, LLC | Corn oil | Short/Sale position
Commitments and contingencies
Value of commitment	$ 111,000		$ 111,000
Granite Falls Energy, LLC Excluding Heron Lake BioEnergy, LLC | Hopper rail cars
Commitments and contingencies
Equipment Lease, Quantity | item	75		75
Granite Falls Energy, LLC Excluding Heron Lake BioEnergy, LLC | Corn Forward Cash and Basis Contracts Purchase Commitments
Commitments and contingencies
Quantity of commitment | bu			3,338,000
Asset impairment charges			$ 179,000		$ 0
Heron Lake BioEnergy, LLC
Commitments and contingencies
Rail Car Rehabilitation Costs			574,000
Heron Lake BioEnergy, LLC | Cost of Goods Sold
Commitments and contingencies
Rehabilitation Cost	$ 12,000		$ 23,000
Heron Lake BioEnergy, LLC | Corn Contracts
Commitments and contingencies
Quantity of commitment | bu			1,246,000		5,398,000
Heron Lake BioEnergy, LLC | Corn Contracts | Short/Sale position
Commitments and contingencies
Quantity of commitment | bu			246,000		3,267,000
Heron Lake BioEnergy, LLC | Corn Contracts | Long/Purchase position
Commitments and contingencies
Quantity of commitment | bu			50,000		2,131,000
Heron Lake BioEnergy, LLC | Corn Contracts | Board Members
Commitments and contingencies
Amount of corn purchased	750,000	$ 2,636,000	$ 5,815,000	$ 4,585,000
Heron Lake BioEnergy, LLC | Ethanol Contracts
Commitments and contingencies
Number of fixed or basis contracts to sell | contract			0
Heron Lake BioEnergy, LLC | Ethanol Contracts | Long/Purchase position
Commitments and contingencies
Asset impairment charges			$ 83,000		$ 0
Heron Lake BioEnergy, LLC | Distillers' Grains | Short/Sale position
Commitments and contingencies
Value of commitment	557,000		557,000
Heron Lake BioEnergy, LLC | Corn oil | Short/Sale position
Commitments and contingencies
Value of commitment	$ 131,000		$ 131,000
Heron Lake BioEnergy, LLC | Hopper rail cars
Commitments and contingencies
Equipment Lease, Quantity | item	50		50
Heron Lake BioEnergy, LLC | Corn Forward Cash and Basis Contracts Purchase Commitments
Commitments and contingencies
Quantity of commitment | bu			5,613,000