Heron Lake BioEnergy (HLBYL) 10-Q 15 Jun 15 2015 Q2 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	6 Months Ended
	Apr. 30, 2015	Jun. 15, 2015
Document Information [Line Items]
Entity Registrant Name	Heron Lake BioEnergy, LLC
Entity Central Index Key	1286964
Current Fiscal Year End Date	-21
Entity Current Reporting Status	Yes
Entity Filer Category	Non-accelerated Filer
Document Type	10-Q
Document Period End Date	30-Apr-15
Amendment Flag	FALSE
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	Q2
Class A
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		62,932,107
Class B
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		15,000,000

Condensed_Consolidated_Balance

Condensed Consolidated Balance Sheets (USD $)	Apr. 30, 2015	Oct. 31, 2014
Current Assets
Cash	$631,711	$662,128
Restricted cash	149,993	264,086
Accounts receivable	4,464,674	4,055,981
Inventory	4,821,817	5,187,267
Derivative Asset, Current	0	437,500
Prepaid expenses	442,732	289,740
Total current assets	10,510,927	10,896,702
Property and Equipment
Land and improvements	9,111,838	9,111,838
Plant buildings and equipment	80,141,786	73,080,366
Vehicles and other equipment	611,976	611,976
Office buildings and equipment	635,285	613,407
Construction in progress	904,315	6,559,517
Property, plant and equipment, gross	91,405,200	89,977,104
Accumulated depreciation	-37,866,690	-35,609,106
Net property and equipment	53,538,510	54,367,998
Other Assets
Other intangible assets, net	141,222	160,296
Other assets	700,716	697,254
Total other assets	841,938	857,550
Total Assets	64,891,375	66,122,250
Current Liabilities
Current maturities of long-term debt	700,595	846,235
Accounts payable	2,969,813	7,047,544
Derivative Liability, Current	79,213	0
Accrued expenses	314,803	215,616
Total current liabilities	4,064,424	8,109,395
Long-Term Debt, net of current maturities	11,538,609	2,112,412
Members' Equity
Members' equity attributable to Heron Lake BioEnergy, LLC: 77,932,107 units (Class A and B) issued and outstanding at both April 30, 2015 and October 31, 2014, respectively.	48,308,363	55,047,120
Noncontrolling interest	979,979	853,323
Total members’ equity	49,288,342	55,900,443
Total Liabilities and Members’ Equity	$64,891,375	$66,122,250

Condensed_Consolidated_Balance1

Condensed Consolidated Balance Sheets (Parenthetical)	Apr. 30, 2015	Oct. 31, 2014
Statement of Financial Position [Abstract]
Members' Equity, Units issued	77,932,107	77,932,107
Members' Equity, Units outstanding	77,932,107	77,932,107

Condensed_Consolidated_Stateme

Condensed Consolidated Statements of Operations (USD $)	3 Months Ended		6 Months Ended
	Apr. 30, 2015	Apr. 30, 2014	Apr. 30, 2015	Apr. 30, 2014
Income Statement [Abstract]
Revenues	$29,813,571	$39,149,053	$56,991,020	$80,059,608
Cost of Goods Sold	27,139,746	31,547,020	52,470,145	65,276,845
Gross Profit	2,673,825	7,602,033	4,520,875	14,782,763
Operating Expenses	782,093	843,468	1,662,475	1,683,445
Operating Income	1,891,732	6,758,565	2,858,400	13,099,318
Other Income (Expense)
Interest income	195	217	195	438
Interest expense	-88,920	-366,593	-136,986	-800,579
Other income (expense), net	-6,111	4,568	18,140	31,470
Total other expense, net	-94,836	-361,808	-118,651	-768,671
Net Income	1,796,896	6,396,757	2,739,749	12,330,647
Net Income Attributable to Noncontrolling Interest	-63,059	-73,698	-126,656	-183,144
Net Income Attributable to Heron Lake BioEnergy, LLC	$1,733,837	$6,323,059	$2,613,093	$12,147,503
Weighted Average Units Outstanding - Basic (in shares)	77,932,107	64,812,107	77,932,107	64,812,107
Net Income (Loss) Per Unit Attributable to Heron Lake BioEnergy, LLC - Basic (Class A and B) (usd per share)	$0.02	$0.10	$0.03	$0.19
Weighted Average Units Outstanding - Diluted (in shares)	77,932,107	78,622,107	77,932,107	78,622,107
Net Income (Loss) Per Unit Attributable to Heron Lake BioEnergy, LLC - Diluted (Class A and B) (usd per share)	$0.02	$0.08	$0.03	$0.15

Consolidated_Statements_of_Cas

Consolidated Statements of Cash Flows (USD $)	6 Months Ended
	Apr. 30, 2015	Apr. 30, 2014	Apr. 30, 2013
Cash Flow From Operating Activities
Net income	$2,739,749	$12,330,647
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation	2,276,658	2,257,180
Change in fair value of commodity derivative instruments	-3,402	-332,205
Change in operating fair value of operating assets and liabilities:
Restricted cash	114,093	-290,920
Accounts receivable	-408,693	-5,683,364
Inventory	365,450	1,371,207
Prepaid expenses and other assets	-156,456	595,112
Accounts payable	-4,077,731	2,502,068
Accrued expenses	99,187	123,462
Commodity derivative instruments	520,115	268,017
Net cash provided by operating activities	1,468,970	13,141,204
Cash Flows from Investing Activities
Capital expenditures	-1,428,096	-819,253
Net cash used in investing activities	-1,428,096	-819,253
Cash Flows from Financing Activities
Proceeds from long-term debt	9,756,420	759,009
Repayments of Long-term Debt	-475,863	-7,368,438
Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders	-9,351,848	0
Net cash used in financing activities	-71,291	-6,609,429
Net increase (decrease) in cash	-30,417	5,712,522
Cash - Beginning of period	662,128	543,238
Cash - End of period	631,711	6,255,760
Supplemental Disclosure of Cash Flow Information
Interest expense paid		152,451	814,350
Supplemental Disclosure of Non-Cash Activities
Cancellation of accrued distribution to noncontrolling interest		$0	$84,523

SUMMARY_OF_SIGNIFICANT_ACCOUNT

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	6 Months Ended
	Apr. 30, 2015
Accounting Policies [Abstract]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
	The accompanying unaudited condensed consolidated interim financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and disclosures normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted as permitted by such rules and regulations. These financial statements and related notes should be read in conjunction with the financial statements and notes thereto included in the Company’s audited consolidated financial statements for the year ended October 31, 2014, contained in the Company’s annual report on Form 10-K.
	In the opinion of management, the condensed consolidated interim 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 interim financial statements should not be regarded as necessarily indicative of results that may be expected for any other quarter or for the fiscal year.
	Nature of Business
	The Company owns and operates an ethanol plant near Heron Lake, Minnesota with a permitted capacity of approximately 59.2 million gallons per year.  In addition, the Company produces and sells distillers' grains with solubles and corn oil as co-products of ethanol production. Additionally, the Company, through a majority owned subsidiary, operates a natural gas pipeline that provides natural gas to the Company's ethanol production facility and other customers.
	Principles of Consolidation
	The financial statements as of April 30, 2015 include the accounts of Heron Lake BioEnergy, LLC and its wholly owned subsidiary, HLBE Pipeline Company, LLC, collectively the "Company". HLBE Pipeline Company, LLC owns 73% of Agrinatural Gas, LLC ("Agrinatural"). Given the Company’s control over the operations of Agrinatural and its majority voting interest, the Company consolidates the financial statements of Agrinatural with its consolidated financial statements, with the equity and earnings (loss) attributed to the remaining 27% noncontrolling interest identified separately in the accompanying Consolidated Balance Sheets and Statements of Operations. All significant intercompany balances and transactions are eliminated in consolidation.
	Accounting Estimates
	Management uses estimates and assumptions in preparing these consolidated financial statements in accordance with generally accepted accounting principles. 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 significant matters including, among others, the economic lives of property and equipment, the analysis of impairment of long-lived assets and valuation of commodity derivative instruments, inventory, and inventory purchase and sales commitments.  The Company periodically reviews estimates and assumptions, and the effects of revisions are reflected in the period in which the revision is made. Actual results could differ from those estimates.
	Noncontrolling Interest
	Amounts recorded as noncontrolling interest on the balance sheets relate to the net investment by an unrelated party in Agrinatural. Income and losses are allocated to the members of Agrinatural based on their respective percentage of membership units held. Agrinatural will provide natural gas to the plant with a specified price per MMBTU for an initial term of 5 years expiring October 31, 2016, with two automatic renewal options for five year periods. On July 1, 2014, the Company entered into an amendment of its natural gas transportation agreement dated May 13, 2011 with Agrinatural in which the Company agreed on an early exercise of one of the two automatic five-year term renewals thereby extending the term of the transportation agreement to October 31, 2021.
	Revenue Recognition
	The Company generally sells ethanol and related products pursuant to marketing agreements. Revenues from the production of ethanol and the related products are recorded when the customer has taken title and assumed the risks and rewards of ownership, prices are fixed or determinable and collectability is reasonably assured. Title is generally assumed by the buyer at the Company’s shipping point.
	In accordance with the Company's agreements for the marketing and sale of ethanol and related products, marketing fees and commissions due to the marketers are deducted from the gross sales price as earned. These fees and commissions are recorded net of revenues as they do not provide an identifiable benefit that is sufficiently separable from the sale of ethanol and related products. Shipping costs incurred by the Company in the sale of ethanol are not specifically identifiable and as a result, are recorded based on the net selling price reported to the Company from the marketer. Shipping costs incurred by the Company in the sale of ethanol related products are included in cost of goods sold.

RISKS_AND_UNCERTAINTIES

RISKS AND UNCERTAINTIES	6 Months Ended
	Apr. 30, 2015
Risks and Uncertainties [Abstract]
RISKS AND UNCERTAINTIES	RISKS AND UNCERTAINTIES
	The Company has certain risks and uncertainties that it experienced 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 and distillers' grains to customers primarily located in the U.S. Corn for the production process is supplied to the plant primarily from local agricultural producers.  Ethanol sales average 75%-85% of total revenues and corn costs average 65%-85% of cost of goods sold.
	The Company’s operating and financial performance is largely driven by the prices at which it sells 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, 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 largest cost of production is corn. The cost of corn is generally impacted by factors such as supply and demand, the weather, government policies and programs, and a risk management program used to protect against the price volatility of these commodities. Market fluctuations in the price of and demand for these products may have a significant adverse effect on the Company’s operations, profitability and the availability and adequacy of cash flow to meet the Company’s working capital requirements.

INVENTORY

INVENTORY	6 Months Ended
	Apr. 30, 2015
Inventory Disclosure [Abstract]
INVENTORY	INVENTORY
	Inventory consisted of the following:
		April 30, 2015		October 31, 2014
	Raw materials	$	1,228,685	$	2,462,754
	Work in process	719,090		791,490
	Finished Goods	1,865,809		1,072,646
	Supplies	1,008,233		860,377
	Total	$	4,821,817	$	5,187,267

DERIVATIVE_INSTRUMENTS

DERIVATIVE INSTRUMENTS	6 Months Ended
	Apr. 30, 2015
Derivative Instruments and Hedging Activities Disclosure [Abstract]
DERIVATIVE INSTRUMENTS	DERIVATIVE INSTRUMENTS
	As of April 30, 2015, the total notional amount of the Company’s outstanding corn derivative instruments was approximately 1,540,000 bushels that were entered into to hedge forecasted corn purchases through March 2016. There may be offsetting positions that are not shown on a net basis that could lower the notional amount of positions outstanding.
	The following tables provide details regarding the Company’s derivative instruments at April 30, 2015, none of which are designated as hedging instruments:
		Balance Sheets location		Assets			Liabilities
	Corn contracts	Commodity derivative instruments		$	—		$	79,213
	As of October 31, 2014, the total notional amount of the Company's outstanding corn derivative instruments was approximately 2,790,000 bushels that were entered into to hedge forecasted corn purchases through July 2015. There may be offsetting positions that are not shown on a net basis that could lower the notional amount of positions outstanding.
	The following tables provide details regarding the Company’s derivative instruments at October 31, 2014, none of which are designated as hedging instruments:
		Balance Sheets location		Assets			Liabilities
	Corn contracts	Commodity derivative instruments		$	437,500		$	—
	The following tables provide details regarding the gains and (losses) from Company’s derivative instruments in its consolidated statements of operations, none of which are designated as hedging instruments:
		Statements of	Three Months Ended April 30,						Six Months Ended April 30,
		Operations Locations	2015			2014			2015		2014
	Corn contracts	Cost of goods sold	$	(10,636	)	$	395,719		$	3,402	$	332,205
	As of April 30, 2015 and October 31, 2014, the Company had approximately $150,000 and $264,000, respectively, of cash collateral (restricted cash) related to corn derivatives held by a broker.

FAIR_VALUE_FAIR_VALUE

FAIR VALUE FAIR VALUE	6 Months Ended
	Apr. 30, 2015
Fair Value Disclosures [Abstract]
FAIR VALUE	FAIR VALUE
	The following table provides information on those derivative assets measured at fair value on a recurring basis at April 30, 2015:
				Fair Value Measurement Using
		Financial Liabilities:	Carrying Amount in Balance Sheet	Quoted Prices in Active Markets	Significant Other Observable Inputs
			30-Apr-15	(Level 1)	(Level 2)	Significant unobservable inputs
						(Level 3)
		Commodity derivative instruments	$—	$79,213	$—	$—
	The following table provides information on those derivative assets measured at fair value on a recurring basis at October 31, 2014:
				Fair Value Measurement Using
		Financial Assets:	Carrying Amount in Balance Sheet	Quoted Prices in Active Markets	Significant Other Observable Inputs
			31-Oct-14	(Level 1)	(Level 2)	Significant unobservable inputs
						(Level 3)
		Commodity derivative instruments	$437,500	$437,500	$—	$—
	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_FINANCING

DEBT FINANCING	6 Months Ended
	Apr. 30, 2015
Debt Disclosure [Abstract]
DEBT FINANCING	DEBT FINANCING
	Debt financing consists of the following:
		April 30, 2015		October 31, 2014
	Revolving term loan to lending institution, see terms below	$	9,482,556	$	—
	Assessments payable	2,275,398		2,292,913
	Note payable to electrical company	181,250		218,750
	Note payable to noncontrolling interest member of Agrinatural	300,000		300,000
	Corn oil recovery system note payable.	—		146,984
	Total	12,239,204		2,958,647
	Less amounts due on demand or within one year	700,595		846,235
	Net long term debt	$	11,538,609	$	2,112,412
	Revolving Term Loan
	The Company has a revolving term loan with a lender initially totaling $28,000,000. Under the terms of the credit facility, the revolving term loan commitment declines by $3,500,000 annually, starting March 1, 2015 and continues each anniversary thereafter until maturity. Therefore, the amount available on this facility at April 30, 2015 was $24,500,000. Amounts borrowed by the Company under the revolving term loan and repaid or prepaid may be re-borrowed at any time prior to the March 1, 2022 maturity date. Interest on the revolving term loan accrues at a variable rate equal to 3.25% above the One-Month London Interbank Offered Rate (“LIBOR”) Index rate. The Company may elect to enter into a fixed interest rate on this loan at various times throughout the term of the loan as provided in the loan agreements. The Company also agreed to pay an unused commitment fee on the unused portion of the revolving term loan commitment at the rate of 0.50% per annum. The revolving term loan is subject to a prepayment fee for any prepayment on the term loan prior to July 1, 2016 due to refinancing. The credit facility contains customary covenants. The loan is secured by substantially all of the Company assets including a subsidiary guarantee. The outstanding balance on the revolving term loan totaled approximately $9,483,000 and $0 at April 30, 2015, and October 31, 2014, respectively. The interest rate on the revolving term loan was 3.44% and 3.41% at April 30, 2015, and October 31, 2014, respectively.
	As part of the credit facility closing, the Company entered into an administrative agency agreement with CoBank, ACP (“CoBank”). CoBank purchased a participation interest in the AgStar loans and was appointed the administrative agent for the purpose of servicing the loans. As a result, CoBank will act as the agent for AgStar with respect to the credit facility.
	In October 2003, the Company entered into an industrial water supply development and distribution agreement with the City of Heron Lake, Jackson County, and Minnesota Soybean Processors. In consideration of this agreement, the Company and Minnesota Soybean Processors are allocated equally the debt service on $735,000 in water revenue bonds that were issued by the City to support this project that mature in February 2019. The parties have agreed that prior to the scheduled expiration of the agreement, they will negotiate in good faith to replace the agreement with a further agreement regarding the wells and related facilities. In May 2006, the Company entered into an industrial water supply treatment agreement with the City of Heron Lake and Jackson County. Under this agreement, the Company pays monthly installments over 24 months starting January 1, 2007 equal to one years' debt service on approximately $3.6 million in water revenue bonds, which will be returned to the Company if any funds remain after final payment in full on the bonds and assuming we comply with all payment obligations under the agreement. As of April 30, 2015, there was a total of $2.3 million in outstanding water revenue bonds. The Company classifies its obligations under these bonds as assessments payable. The interest rates on the bonds range from 0.50% to 8.73%.
	Estimated annual maturities of debt at April 30, 2015 are as follows based on the most recent debt agreements:
	2015	$	700,595
	2016	$	419,458
	2017	$	344,123
	2018	$	323,209
	2019	$	306,706
	After 2019	$	10,145,113
	Total long-term debt	$	12,239,204

COMMITMENTS_AND_CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	6 Months Ended
	Apr. 30, 2015
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	COMMITMENTS AND CONTINGENCIES
	Forward Contracts
	On April 30, 2015, the Company had cash and basis contracts for forward corn purchase commitments for approximately 3.06 million bushels for deliveries through November 2015.
	At April 30, 2015, the Company had forward contracts to sell approximately $7,189,000 of ethanol for various delivery periods from May 2015 through June 2015 which approximates 50% of its anticipated ethanol sales during that period.
	At April 30, 2015, the Company had forward contracts to sell approximately $5,297,000 of distillers' grains for deliveries through September 2015 which approximates 45% of its anticipated distillers' grain sales during that period.
	At April 30, 2015, the Company had natural gas agreements with a minimum purchase commitment of approximately 1.6 million MMBTU per year until April 2016. At April 30, 2015, the Company had no forward contracts to buy natural gas.

MEMBERS_EQUITY

MEMBERS' EQUITY	6 Months Ended
	Apr. 30, 2015
Equity [Abstract]
MEMBERS' EQUITY	MEMBERS’ EQUITY
	The Company is authorized to issue 80,000,000 capital units, of which 65,000,000 have been designated Class A units and 15,000,000 have been designated as Class B units. Members of the Company are holders of units who have been admitted as members and who hold at least 2,500 units. Any holder of units who is not a member will not have voting rights. Transferees of units must be approved by our Board of Governors to become members. Members are entitled to one vote for each unit held. Subject to the Member Control Agreement, all units share equally in the profits and losses and distributions of assets on a per unit basis.
	The Company has a total of 62,932,107 Class A units and 15,000,000 Class B units issued and outstanding, for an aggregate total of 77,932,107 units issued and outstanding at both April 30, 2015 and October 31, 2014.
	In December 2014, the Board of Governors declared a cash distribution of $0.12 per unit, or approximately $9,352,000. The distribution was paid in January 2015.

Leases_Notes

Leases (Notes)	6 Months Ended
	Apr. 30, 2015
Leases [Abstract]
Lease, Policy [Policy Text Block]	LEASES
	The Company leases equipment, primarily rail cars, under operating leases through 2017. Rent expense for these leases was approximately $528,000 and $1,047,000 for the three and six months ended April 30, 2015, respectively, and approximately $405,000 and $875,000 for the three and six months ended April 30, 2014, respectively.

BUSINESS_SEGMENT_Notes

BUSINESS SEGMENT (Notes)	6 Months Ended
	Apr. 30, 2015
Segment Reporting Information [Line Items]
Segment Reporting Disclosure [Text Block]	BUSINESS SEGMENTS
	Based on the growth of the Company’s natural gas pipeline subsidiary during the fourth quarter of fiscal 2014, the Company has determined they have two operating segments. The Company groups its operations into the following two business segments:
	Ethanol Production	Ethanol and co-product production and sales
	Natural gas pipeline	Ownership and operations of natural gas pipeline
	Segment reporting is intended to give financial statement users a better view of how the Company manages and evaluates its businesses.   The accounting policies for each segment are the same as those described in the summary of significant accounting policies. Segment income or loss does not include any allocation of shared-service costs.  Segment assets are those that are directly used in or identified with segment operations. Inter-segment balances and transactions have been eliminated.
	The following tables summarize financial information by segment and provide a reconciliation of segment revenue, contribution to operating income, and total assets:
		Six months ended			Six months ended
	Revenue:	April 30, 2015			April 30, 2014
	Ethanol production	$	56,353,990		$	79,559,163
	Natural gas pipeline	1,529,178			1,352,754
	Eliminations	(892,148		)	(852,309		)
	Total Revenue	$	56,991,020		$	80,059,608
	Operating Income:
	Ethanol production	$	2,302,939		$	13,223,479
	Natural gas pipeline	879,526			(45,933		)
	Eliminations	(324,065		)	(78,228		)
	Operating Income	$	2,858,400		$	13,099,318
		April 30, 2015			October 31, 2014
	Total Assets:	(unaudited)
	Ethanol production	$	51,535,007		$	53,826,820
	Natural gas pipeline	13,356,368			12,295,430
	Total Assets	$	64,891,375		$	66,122,250

SUMMARY_OF_SIGNIFICANT_ACCOUNT1

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	6 Months Ended
	Apr. 30, 2015
Accounting Policies [Abstract]
Nature of Business	Nature of Business
	The Company owns and operates an ethanol plant near Heron Lake, Minnesota with a permitted capacity of approximately 59.2 million gallons per year.  In addition, the Company produces and sells distillers' grains with solubles and corn oil as co-products of ethanol production.
Principles of Consolidation	Principles of Consolidation
	The financial statements as of April 30, 2015 include the accounts of Heron Lake BioEnergy, LLC and its wholly owned subsidiary, HLBE Pipeline Company, LLC, collectively the "Company". HLBE Pipeline Company, LLC owns 73% of Agrinatural Gas, LLC ("Agrinatural"). Given the Company’s control over the operations of Agrinatural and its majority voting interest, the Company consolidates the financial statements of Agrinatural with its consolidated financial statements, with the equity and earnings (loss) attributed to the remaining 27% noncontrolling interest identified separately in the accompanying Consolidated Balance Sheets and Statements of Operations. All significant intercompany balances and transactions are eliminated in consolidation.
Accounting Estimates	Accounting Estimates
	Management uses estimates and assumptions in preparing these consolidated financial statements in accordance with generally accepted accounting principles. 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 significant matters including, among others, the economic lives of property and equipment, the analysis of impairment of long-lived assets and valuation of commodity derivative instruments, inventory, and inventory purchase and sales commitments.  The Company periodically reviews estimates and assumptions, and the effects of revisions are reflected in the period in which the revision is made. Actual results could differ from those estimates.
Noncontrolling Interest	Noncontrolling Interest
	Amounts recorded as noncontrolling interest on the balance sheets relate to the net investment by an unrelated party in Agrinatural. Income and losses are allocated to the members of Agrinatural based on their respective percentage of membership units held. Agrinatural will provide natural gas to the plant with a specified price per MMBTU for an initial term of 5 years expiring October 31, 2016, with two automatic renewal options for five year periods. On July 1, 2014, the Company entered into an amendment of its natural gas transportation agreement dated May 13, 2011 with Agrinatural in which the Company agreed on an early exercise of one of the two automatic five-year term renewals thereby extending the term of the transportation agreement to October 31, 2021.
Revenue Recognition	Revenue Recognition
	The Company generally sells ethanol and related products pursuant to marketing agreements. Revenues from the production of ethanol and the related products are recorded when the customer has taken title and assumed the risks and rewards of ownership, prices are fixed or determinable and collectability is reasonably assured. Title is generally assumed by the buyer at the Company’s shipping point.
	In accordance with the Company's agreements for the marketing and sale of ethanol and related products, marketing fees and commissions due to the marketers are deducted from the gross sales price as earned. These fees and commissions are recorded net of revenues as they do not provide an identifiable benefit that is sufficiently separable from the sale of ethanol and related products. Shipping costs incurred by the Company in the sale of ethanol are not specifically identifiable and as a result, are recorded based on the net selling price reported to the Company from the marketer. Shipping costs incurred by the Company in the sale of ethanol related products are included in cost of goods sold.

INVENTORY_Tables

INVENTORY (Tables)	6 Months Ended
	Apr. 30, 2015
Inventory Disclosure [Abstract]
Schedule of inventory	Inventory consisted of the following:
		April 30, 2015		October 31, 2014
	Raw materials	$	1,228,685	$	2,462,754
	Work in process	719,090		791,490
	Finished Goods	1,865,809		1,072,646
	Supplies	1,008,233		860,377
	Total	$	4,821,817	$	5,187,267

DERIVATIVE_INSTRUMENTS_Tables

DERIVATIVE INSTRUMENTS (Tables)	6 Months Ended
	Apr. 30, 2015
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Schedule of Derivative Instruments	The following tables provide details regarding the Company’s derivative instruments at April 30, 2015, none of which are designated as hedging instruments:
		Balance Sheets location		Assets			Liabilities
	Corn contracts	Commodity derivative instruments		$	—		$	79,213
Schedule of losses from derivative instruments included in the Statements of Operations	The following tables provide details regarding the gains and (losses) from Company’s derivative instruments in its consolidated statements of operations, none of which are designated as hedging instruments:
		Statements of	Three Months Ended April 30,						Six Months Ended April 30,
		Operations Locations	2015			2014			2015		2014
	Corn contracts	Cost of goods sold	$	(10,636	)	$	395,719		$	3,402	$	332,205
	As of April 30, 2015 and October 31, 2014, the Company had approximately $150,000 and $264,000, respectively, of cash collateral (restricted cash) related to corn derivatives held by a broker.

FAIR_VALUE_Tables

FAIR VALUE (Tables)	6 Months Ended
	Apr. 30, 2015
Fair Value Disclosures [Abstract]
Derivative Liabilities Measured at Fair Value on a Recurring Basis	The following table provides information on those derivative assets measured at fair value on a recurring basis at April 30, 2015:
				Fair Value Measurement Using
		Financial Liabilities:	Carrying Amount in Balance Sheet	Quoted Prices in Active Markets	Significant Other Observable Inputs
			30-Apr-15	(Level 1)	(Level 2)	Significant unobservable inputs
						(Level 3)
		Commodity derivative instruments	$—	$79,213	$—	$—
	The following table provides information on those derivative assets measured at fair value on a recurring basis at October 31, 2014:
				Fair Value Measurement Using
		Financial Assets:	Carrying Amount in Balance Sheet	Quoted Prices in Active Markets	Significant Other Observable Inputs
			31-Oct-14	(Level 1)	(Level 2)	Significant unobservable inputs
						(Level 3)
		Commodity derivative instruments	$437,500	$437,500	$—	$—

DEBT_FINANCING_Tables

DEBT FINANCING (Tables)	6 Months Ended
	Apr. 30, 2015
Debt Disclosure [Abstract]
Schedule of debt financing	Debt financing consists of the following:
		April 30, 2015		October 31, 2014
	Revolving term loan to lending institution, see terms below	$	9,482,556	$	—
	Assessments payable	2,275,398		2,292,913
	Note payable to electrical company	181,250		218,750
	Note payable to noncontrolling interest member of Agrinatural	300,000		300,000
	Corn oil recovery system note payable.	—		146,984
	Total	12,239,204		2,958,647
	Less amounts due on demand or within one year	700,595		846,235
	Net long term debt	$	11,538,609	$	2,112,412
Schedule of estimated maturities of debt	Estimated annual maturities of debt at April 30, 2015 are as follows based on the most recent debt agreements:
	2015	$	700,595
	2016	$	419,458
	2017	$	344,123
	2018	$	323,209
	2019	$	306,706
	After 2019	$	10,145,113
	Total long-term debt	$	12,239,204

BUSINESS_SEGMENT_Tables

BUSINESS SEGMENT (Tables)	6 Months Ended
	Apr. 30, 2015
Segment Reporting Information [Line Items]
Schedule of Segment Reporting Information, by Segment [Table Text Block]	The following tables summarize financial information by segment and provide a reconciliation of segment revenue, contribution to operating income, and total assets:
		Six months ended			Six months ended
	Revenue:	April 30, 2015			April 30, 2014
	Ethanol production	$	56,353,990		$	79,559,163
	Natural gas pipeline	1,529,178			1,352,754
	Eliminations	(892,148		)	(852,309		)
	Total Revenue	$	56,991,020		$	80,059,608
	Operating Income:
	Ethanol production	$	2,302,939		$	13,223,479
	Natural gas pipeline	879,526			(45,933		)
	Eliminations	(324,065		)	(78,228		)
	Operating Income	$	2,858,400		$	13,099,318
		April 30, 2015			October 31, 2014
	Total Assets:	(unaudited)
	Ethanol production	$	51,535,007		$	53,826,820
	Natural gas pipeline	13,356,368			12,295,430
	Total Assets	$	64,891,375		$	66,122,250

SUMMARY_OF_SIGNIFICANT_ACCOUNT2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) (USD $)	6 Months Ended
	Apr. 30, 2015	Apr. 30, 2014	Apr. 30, 2013
	option
	gal
Accounting Policies [Abstract]
Permitted capacity of Ethanol plant owned and operated	59,200,000
Summary of significant accounting policies
Initial term of providing natural gas to the plant	5 years
Number of renewal options	2
Term of renewed contract	5 years
Cancellation of accrued distribution, noncontrolling interest		$0	$84,523
HLBE Pipeline Company, LLC
Summary of significant accounting policies
Percentage of Agrinatural Gas, LLC owned by HLBE Pipeline Company, LLC	73.00%
Agrinatural
Summary of significant accounting policies
Remaining percentage in Agrinatural Gas, LLC included as noncontrolling interest (as a percent)	27.00%

UNCERTAINTIES_Details

UNCERTAINTIES (Details)	6 Months Ended
	Apr. 30, 2015
Total revenues | Ethanol | Minimum
UNCERTAINTIES
Average percentage of total sales or cost of goods sold	75.00%
Total revenues | Ethanol | Maximum
UNCERTAINTIES
Average percentage of total sales or cost of goods sold	85.00%
Cost of goods sold | Corn | Minimum
UNCERTAINTIES
Average percentage of total sales or cost of goods sold	65.00%
Cost of goods sold | Corn | Maximum
UNCERTAINTIES
Average percentage of total sales or cost of goods sold	85.00%

INVENTORY_Details

INVENTORY (Details) (USD $)	Apr. 30, 2015	Oct. 31, 2014
Inventory Disclosure [Abstract]
Raw materials	$1,228,685	$2,462,754
Work in process	719,090	791,490
Finished Goods	1,865,809	1,072,646
Supplies	1,008,233	860,377
Total	$4,821,817	$5,187,267

DERIVATIVE_INSTRUMENTS_Details

DERIVATIVE INSTRUMENTS (Details) (USD $)	3 Months Ended		6 Months Ended
	Apr. 30, 2015	Apr. 30, 2014	Apr. 30, 2015	Apr. 30, 2014	Oct. 31, 2014	Jan. 31, 2015
						bu
Derivative Instruments
Derivative Asset, Current	$0		$0		$437,500
Restricted Cash and Investments, Current	149,993		149,993		264,086
Derivative Liability, Current	79,213		79,213		0
Corn contracts
Derivative Instruments
Notional amount of outstanding derivatives	2,790,000		2,790,000			1,540,000
Not Designated as Hedging Instrument | Corn contracts
Derivative Instruments
Losses from derivative instruments	($10,636)	$395,719	$3,402	$332,205

FAIR_VALUE_Details

FAIR VALUE (Details) (USD $)	Apr. 30, 2015	Oct. 31, 2014
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative Asset, Current	$0	$437,500
Level 1 | Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Commodity derivative instruments	79,213	437,500
Level 2 | Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Commodity derivative instruments	0	0
Level 3 | Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Commodity derivative instruments	$0	$0

DEBT_FINANCING_Details

DEBT FINANCING (Details) (USD $)	6 Months Ended
	Apr. 30, 2015	Apr. 30, 2014	Oct. 31, 2014	Jan. 31, 2015
Debt financing
Total long-term debt	$12,239,204		$2,958,647
Less amounts due on demand or within one year	700,595		846,235
Net long term debt	11,538,609		2,112,412
Initial Term of Transportation Agreement	5 years
Proceeds from Issuance of Long-term Debt	9,756,420	759,009
Estimated maturities of debt
2015	700,595
2016	419,458
2017	344,123
2018	323,209
2019	306,706
After 2019	10,145,113
Revolving term note payable to lending institution
Debt financing
Total long-term debt	9,482,556
Debt Instrument, Face Amount	24,500,000			28,000,000
Debt Instrument, outstanding amount	9,483,000		0
Interest rate (as a percent)	3.44%		3.41%
Spread over interest rate (as a percent)	3.25%
Unused commitment fee per annum on the unused portion of debt (as a percent)	0.50%
Annual decline in loan availability after a specified date	3,500,000
Revolving term note payable to lending institution | Minimum
Debt financing
Variable rate basis	LIBOR
Assessments payable
Debt financing
Total long-term debt			2,292,913
Debt Instrument, Face Amount	3,600,000
Debt Instrument, outstanding amount	2,275,398
Debt Instrument, Interest Rate, Effective Percentage Rate Range, Minimum	0.50%
Debt Instrument, Interest Rate, Effective Percentage Rate Range, Maximum	8.73%
Notes payable to electrical company
Debt financing
Total long-term debt	181,250		218,750
Periodic payment	6,250
Maintenance fee percentage	1.00%
Construction note payable
Debt financing
Interest rate (as a percent)	5.29%
Debt Instrument, Term	3 years
Corn oil recovery system note payable
Debt financing
Total long-term debt			146,984
Interest rate (as a percent)	5.57%
Periodic payment	40,000
Subordinated Debt
Debt financing
Interest rate (as a percent)	7.25%
Water Revenue bonds [Member]
Debt financing
Debt Instrument, Face Amount	735,000
Agrinatural, LLC | Note Payable Noncontrolling Entity
Debt financing
Total long-term debt	300,000		300,000
Interest rate (as a percent)	5.43%
Interest Rate of 8.73% [Member]
Debt financing
Interest rate (as a percent)	8.73%
Periodic payment	3,942
Interest Rate of 6.55% [Member]
Debt financing
Interest rate (as a percent)	6.55%
Periodic payment	189,393
Debt Instrument, Periodic Worth of Debt	1 year
Interest Rate of .50% [Member]
Debt financing
Interest rate (as a percent)	0.50%
Periodic payment	$25,692

COMMITMENTS_AND_CONTINGENCIES_

COMMITMENTS AND CONTINGENCIES (Details) (USD $)	6 Months Ended
	Apr. 30, 2015
	bu
Natural gas agreements
COMMITMENTS AND CONTINGENCIES
Forward Contracts, Bushels	1,600,000
Ethanol
COMMITMENTS AND CONTINGENCIES
Forward Contracts	7,189,000
Estimated Percent of Product Produced	50.00%
Distillers Grains
COMMITMENTS AND CONTINGENCIES
Forward Contracts	5,297,000
Estimated Percent of Product Produced	45.00%
Corn
COMMITMENTS AND CONTINGENCIES
Forward Contracts, Bushels	3,060,000

MEMBERS_EQUITY_Details

MEMBERS' EQUITY (Details) (USD $)	6 Months Ended
	Apr. 30, 2015	Oct. 31, 2014
	vote_per_share
Membership units
Units authorized (in shares)	80,000,000
Minimum number of units held by members of the company (in shares)	2,500
Number of votes per unit	1
Members' Equity, Units issued	77,932,107	77,932,107
Members' Equity, Units outstanding	77,932,107	77,932,107
Distribution Made to Limited Liability Company (LLC) Member, Distributions Paid, Per Unit	$0.12
Distribution Made to Limited Liability Company (LLC) Member, Cash Distributions Paid	$9,352,000
Class A
Membership units
Units authorized (in shares)	65,000,000
Members' Equity, Units issued	49,812,107	49,812,107
Members' Equity, Units outstanding	62,932,107	49,812,107
Class B
Membership units
Units authorized (in shares)	15,000,000
Members' Equity, Units issued	15,000,000	15,000,000
Members' Equity, Units outstanding	15,000,000	15,000,000

Leases_Details

Leases (Details) (USD $)	3 Months Ended		6 Months Ended
	Apr. 30, 2015	Apr. 30, 2014	Apr. 30, 2015	Apr. 30, 2014
Operating Leased Assets [Line Items]
Operating Leases, Rent Expense, Net	$528,000	$1,047,000	$405,000	$875,000

BUSINESS_SEGMENT_Details

BUSINESS SEGMENT (Details) (USD $)	3 Months Ended		6 Months Ended
	Apr. 30, 2015	Apr. 30, 2014	Apr. 30, 2015	Apr. 30, 2014	Oct. 31, 2014
Revenue from External Customer [Line Items]
Revenues			$56,991,020	$80,059,608
Operating Income (Loss)	1,891,732	6,758,565	2,858,400	13,099,318
Assets, Total	64,891,375		64,891,375		66,122,250
Ethanol [Member]
Revenue from External Customer [Line Items]
Revenues			56,353,990	79,559,163
Operating Income (Loss)			2,302,939	13,223,479
Assets, Total	51,535,007		51,535,007		53,826,820
Natural Gas [Member]
Revenue from External Customer [Line Items]
Revenues			1,529,178	1,352,754
Operating Income (Loss)			879,526	-45,933
Assets, Total	13,356,368		13,356,368		12,295,430
Intersegment Eliminations [Member]
Revenue from External Customer [Line Items]
Revenues			-892,148	-852,309
Operating Income (Loss)			($324,065)	($78,228)