Heron Lake BioEnergy (HLBYL) 10-K 16 Feb 21 2020 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($)	12 Months Ended
	Oct. 31, 2020	Feb. 16, 2021	Apr. 30, 2020
Document Information [Line Items]
Document Type	10-K
Document Period End Date	Oct. 31, 2020
Entity Registrant Name	Heron Lake BioEnergy, LLC
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Central Index Key	0001286964
Current Fiscal Year End Date	--10-31
Document Fiscal Year Focus	2020
Document Fiscal Period Focus (Q1,Q2,Q3,FY)	FY
Amendment Flag	false
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Public Float			$ 9,659,704
Class A units
Document Information [Line Items]
Common stock, shares outstanding		62,932,107
Class B units
Document Information [Line Items]
Common stock, shares outstanding		15,000,000

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($)	Oct. 31, 2020	Oct. 31, 2019
Current Assets
Cash	$ 3,276,301	$ 4,541,295
Restricted cash	514,050	52,516
Accounts receivable	1,616,489	4,891,249
Inventory	7,063,675	6,276,258
Commodity derivative instruments	15,150	95,823
Prepaid expenses and other current assets	782,280	408,325
Total current assets	13,267,945	16,265,466
Property and Equipment, net	40,187,733	39,408,195
Operating lease right of use assets	9,291,249
Other assets	333,254	922,254
Total Assets	63,080,181	56,595,915
Current Liabilities
Current maturities of long-term debt	11,492,059	333,977
Checks drawn in excess of bank balances	692,984
Accounts payable	6,916,045	5,386,618
Commodity derivative instruments	173,928
Accrued expenses	496,513	423,266
Operating lease, current liabilities	1,344,258
Total current liabilities	21,115,787	6,143,861
Long-Term Debt, less current portion	295,611	300,203
Operating Lease, long-term liabilities	7,946,991
Other Long-Term Liabilities	596,924	551,000
Commitments and Contingencies
Members' Equity
Members' equity attributable to Heron Lake BioEnergy, LLC consists of 77,932,107 units issued and outstanding at October 31, 2020 and October 31, 2019	33,124,868	47,599,276
Non-controlling interest		2,001,575
Total members' equity	33,124,868	49,600,851
Total Liabilities and Members' Equity	$ 63,080,181	$ 56,595,915

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - shares	Oct. 31, 2020	Oct. 31, 2019
Consolidated Balance Sheets
Members' Equity, units issued	77,932,107	77,932,107
Members' Equity, units outstanding	77,932,107	77,932,107

Consolidated Statements of Oper

Consolidated Statements of Operations - USD ($)	12 Months Ended
	Oct. 31, 2020	Oct. 31, 2019
Consolidated Statements of Operations
Revenues	$ 76,029,841	$ 106,827,445
Cost of Goods Sold	84,998,010	108,812,379
Gross Loss	(8,968,169)	(1,984,934)
Operating Expenses	(5,401,600)	(3,397,611)
Operating Loss	(14,369,769)	(5,382,545)
Other Income (Expense):
Interest income	13,947	77,654
Interest expense	(253,639)	(98,815)
Other income, net	358,478	225,872
Total other income, net	118,786	204,711
Net Loss	(14,250,983)	(5,177,834)
Less: Net Income Attributable to Non-controlling Interest	(67,827)	(277,736)
Net Loss Attributable to Heron Lake BioEnergy, LLC	$ (14,318,810)	$ (5,455,570)
Weighted Average Units Outstanding—Basic and Diluted (Class A and B)	77,932,107	77,932,107
Net Loss Per Unit Attributable to Heron Lake BioEnergy, LLC—Basic and Diluted (Class A and B)	$ (0.18)	$ (0.07)

Consolidated Statements of Chan

Consolidated Statements of Changes in Members' Equity - USD ($)	Class A units	Class B units	Members' Equity attributable to Heron Lake BioEnergy LLC	Noncontrolling Interest	Total
Balance at Oct. 31, 2018			$ 53,054,846	$ 1,723,839	$ 54,778,685
Balance (in units) at Oct. 31, 2018	62,932,107	15,000,000
Increase (Decrease) in Stockholders' Equity
Net income attributable to non-controlling interest				277,736	277,736
Net loss attributable to Heron Lake BioEnergy, LLC			(5,455,570)		(5,455,570)
Balance at Oct. 31, 2019			47,599,276	2,001,575	$ 49,600,851
Balance (in units) at Oct. 31, 2019	62,932,107	15,000,000			77,932,107
Increase (Decrease) in Stockholders' Equity
Acquisition of non-controlling interest			(155,598)	(2,069,402)	$ (2,225,000)
Net income attributable to non-controlling interest				$ 67,827	67,827
Net loss attributable to Heron Lake BioEnergy, LLC			(14,318,810)		(14,318,810)
Balance at Oct. 31, 2020			$ 33,124,868		$ 33,124,868
Balance (in units) at Oct. 31, 2020	62,932,107	15,000,000			77,932,107

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($)	12 Months Ended
	Oct. 31, 2020	Oct. 31, 2019
Cash Flow From Operating Activities:
Net loss	$ (14,250,983)	$ (5,177,834)
Adjustments to reconcile net loss to net cash used in operations:
Depreciation and amortization	5,228,078	5,253,479
Loss on disposal of assets	1,833,928	4,864
Change in fair value of commodity derivative instruments	1,200,066	(375,216)
Change in operating assets and liabilities:
Accounts receivable	3,274,760	(938,562)
Inventory	(787,417)	122,428
Commodity derivative instruments	(945,465)	679,851
Prepaid expenses and other current assets	(9,955)	(15,345)
Accounts payable	(486,012)	(103,915)
Accrued expenses	73,247	(420,609)
Accrued railcar rehabilitation costs	45,924	551,000
Net cash used in operating activities	(4,823,829)	(419,859)
Cash Flows from Investing Activities:
Capital expenditures	(5,826,105)	(432,291)
Net cash used in investing activities	(5,826,105)	(432,291)
Cash Flows from Financing Activities:
Proceeds from long-term debt	66,305,585
Payments on long-term debt	(55,747,788)	(325,021)
Checks drawn in excess of bank balance	692,984
Proceeds from Paycheck Protection Program loan	595,693
Acquisition of non-controlling interest	(2,000,000)	(225,000)
Net cash provided by (used in) financing activities	9,846,474	(550,021)
Net decrease in Cash and Restricted Cash	(803,460)	(1,402,171)
Cash and Restricted Cash—Beginning of Period	4,593,811	5,995,982
Cash and Restricted Cash—End of Period	3,790,351	4,593,811
Supplemental Disclosure of Cash Flow Information
Interest expense	181,849	98,815
Supplemental Disclosure of Non-Cash Investing and Financing Activities
Capital expenditures included in accounts payable	$ 2,140,625	$ 125,186

Consolidated Statements of Ca_2

Consolidated Statements of Cash Flows (Parenthetical) - USD ($)	Oct. 31, 2020	Oct. 31, 2019	Oct. 31, 2018
Reconciliation of Cash and Restricted Cash
Cash - Balance Sheet	$ 3,276,301	$ 4,541,295
Restricted Cash - Balance Sheet	514,050	52,516
Cash and Restricted Cash	$ 3,790,351	$ 4,593,811	$ 5,995,982

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	12 Months Ended
	Oct. 31, 2020
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of Business Heron Lake BioEnergy, LLC owns and operates an ethanol plant near Heron Lake, Minnesota with a permitted capacity of approximately 72.3 million gallons per year of undenatured ethanol on a twelve-month rolling sum basis. In addition, Heron Lake BioEnergy, LLC produces and sells distillers’ grains with solubles and corn oil as co-products of ethanol production. Heron Lake BioEnergy, LLC’s wholly owned subsidiary, HLBE Pipeline Company, LLC (“HLBE Pipeline Company”), is the sole owner of Agrinatural Gas, LLC (“Agrinatural”). Agrinatural operates a natural gas pipeline that provides natural gas to Heron Lake BioEnergy, LLC’s ethanol production facility and other customers through a connection with natural gas pipeline facilities of Northern Border Pipeline Company in Cottonwood County, Minnesota. Beginning as of December 11, 2019, HLBE holds a 100% interest in Agrinatural. At October 31, 2019, HLBE held a 73% interest in Agrinatural. Principles of Consolidation The consolidated financial statements include the accounts of Heron Lake BioEnergy, LLC and its wholly owned subsidiary, HLBE Pipeline Company (collectively, “the Company”). 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 attributed to the remaining 27% non-controlling interest identified separately in the accompanying consolidated balance sheets and statements of operations through December 11, 2019 when the remaining non-controlling interest was acquired. All significant intercompany balances and transactions are eliminated in consolidation. Fiscal Reporting Period The Company’s fiscal year end for reporting financial operations is October 31. Accounting Estimates Management uses estimates and assumptions in preparing these consolidated financial statements in accordance with U.S. 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, valuation of commodity derivative instruments and inventory, evaluation of rail car rehabilitation costs, the assumptions used in the impairment analysis of long-lived assets, and inventory purchase and sale 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. Non-controlling Interest Amounts recorded as non-controlling interest on the October 31, 2019 consolidated balance sheet relates to the net investment by an unrelated party in Agrinatural through December 11, 2019 when the remaining non-controlling interest was acquired. 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 three distinct marketing companies as discussed 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, Gavilon, Inc, to sell one hundred percent of the distillers grains it produces at the plant. Gavilon 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 Gavilon and the Company. Our performance obligations consist of our obligation to deliver distillers grains 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. · Agrinatural generates revenue from the transportation of natural gas to residential and commercial customers. Revenue is recognized at the point when natural gas is delivered at the transaction price established in the contract. Cost of Goods Sold The primary components of cost of goods sold for the production of ethanol and related co-products are corn, energy, raw materials, overhead, depreciation, railcar rehabilitation costs, and direct labor. Operating Expenses The primary components of operating expenses are salaries and expenses for administrative employees, professional fees, board of governor expenses, loss on disposal of assets and property taxes. Cash The Company maintains its accounts at multiple financial institutions. At times throughout the year, the Company’s cash balances may exceed amounts insured by the Federal Deposit Insurance Corporation and the Securities Investor Protection Corporation. The Company does not believe it is exposed to any significant credit risk on its cash balances. Restricted Cash The Company is periodically required to maintain cash balances at its broker related to derivative instrument positions as discussed in Note 7. Accounts Receivable Credit terms are extended to customers in the normal course of business. The Company performs ongoing credit evaluations of its customers’ financial condition and, generally, requires no collateral. Accounts receivable are recorded at their estimated net realizable value. Accounts are considered past due if payment is not made on a timely basis in accordance with the Company’s credit terms. Accounts considered uncollectible are written off. The Company follows a policy of providing an allowance for doubtful accounts; however, based on historical experience, and its evaluation of the current status of receivables, the Company is of the belief that such accounts will be collectible in all material respects and thus an allowance was not necessary at October 31, 2020 or 2019. It is at least possible this estimate will change in the future. Inventory Inventory is stated at the lower of cost or net realizable value. Cost for all inventories is determined using the first in first out method (FIFO). Net realizable value is the estimated selling prices in the ordinary course of business less reasonably predictable costs of completion, disposal, and transportation. Inventory consists of raw materials, work in process, finished goods, and 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 in 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 consolidated 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 7. Property and Equipment Property and equipment are recorded at cost. Depreciation is provided over an estimated useful life by use of the straight-line deprecation method. Maintenance and repairs are expensed as incurred; major improvements and betterments are capitalized. Construction in progress expenditures will be depreciated using the straight-line method over their estimated useful lives once the assets are placed into service. Depreciable useful lives are as follows: Land improvements 15 Years Plant building and equipment 7-40 Years Vehicles and other equipment 5-7 Years Office buildings and equipment 3-40 Years Long-Lived Assets Long-lived assets, such as property and equipment, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. When determining impairment losses, a long lived asset should be grouped with other assets or liabilities at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets or liabilities. If circumstances require a long-lived asset to be tested for possible impairment, the Company first compares undiscounted cash flows expected to be generated by an asset to the carrying value of the asset. If the carrying value of the long-lived asset is not recoverable on an undiscounted cash flow basis, impairment is recognized to the extent that the carrying value exceeds its fair value. Fair value is determined through various valuation techniques including, but not limited to, discounted cash flow models, quoted market values and third-party independent appraisals, as considered necessary. No impairment expense was recorded during fiscal 2020 or 2019. Fair Value of Financial Instruments The Company follows guidance for accounting for fair value measurements of financial assets and liabilities and for fair value measurements of nonfinancial items that are recognized or disclosed at fair value in the consolidated financial statements on a recurring and nonrecurring basis. The guidance establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to measurements involving significant unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are as follows: · Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. · Level 2 inputs include: 1. Quoted prices in active markets for similar assets or liabilities. 2. Quoted prices in markets that are observable for the asset or liability either directly or indirectly, for substantially the full term of the asset or liability. 3. Inputs that derived primarily from or corroborated by observable market date by correlation or other means. · Level 3 inputs are unobservable inputs for the asset or liability. The level in the fair value hierarchy within which a fair measurement in its entirety falls is based on the lowest level input that is significant to the fair value measurement in its entirety. Except for those assets and liabilities which are required by authoritative accounting guidance to be recorded at fair value, the Company has elected not to record any other assets or liabilities at fair value. No events occurred during the fiscal years ended October 31, 2020 or 2019 that required adjustment to the recognized balances of assets or liabilities, which are recorded at fair value on a nonrecurring basis. The carrying value of cash, accounts receivable, accounts payable and accrued liabilities approximates fair value due to the short maturity of these instruments. The fair value of debt has been estimated using discounted cash flow analysis based upon the Company’s current incremental borrowing rates for similar types of financing arrangements. The fair value of outstanding debt will fluctuate with changes in applicable interest rates. Fair value will exceed carrying value when the current market interest rate is lower than the interest rate at which the debt was originally issued. The Company believes the carrying amount of its debt facilities approximates the fair value. Income Taxes The Company is treated as a partnership for federal and state income tax purposes and generally does not incur income taxes. Instead, its earnings and losses are included in the income tax returns of the members. Therefore, no provision or liability for federal or state income taxes has been included in these financial statements. Differences between financial statement basis of assets and tax basis of assets is related to capitalization and amortization of organization and start-up costs for tax purposes, whereas these costs are expensed for financial statement purposes. In addition, the Company uses the alternative depreciation system (ADS) for tax depreciation instead of the straight-line method that is used for book depreciation, which also causes temporary differences. The Company’s tax year end is December 31. The Company had no significant uncertain tax positions as of October 31, 2020 or 2019 that would require disclosure, primarily due to the partnership tax status. The Company recognizes and measures tax benefits when realization of the benefits is uncertain under a two-step approach. The first step is to determine whether the benefit meets the more-likely-than-not condition for recognition and the second step is to determine the amount to be recognized based on the cumulative probability that exceeds 50%. Primarily due to the Company’s tax status as a partnership, the adoption of this guidance had no material impact on the Company’s financial condition or results of operations. The Company files income tax returns in the U.S. federal and Minnesota state jurisdictions. The Company is no longer subject to U.S. federal and state income tax examinations by tax authorities for years before 2017. Net Income (Loss) per Unit Basic net income (loss) per unit is computed by dividing net income by the weighted average number of members’ units outstanding during the period. Diluted net income or loss per unit is computed by dividing net income by the weighted average number of members’ units and members’ unit equivalents outstanding during the period. Environmental Liabilities The Company’s operations are subject to environmental laws and regulations adopted by various governmental entities in the jurisdiction in which it operates. These laws require the Company to investigate and remediate the effects of the release or disposal of materials at its location. Accordingly, the Company has adopted policies, practices, and procedures in the areas of pollution control, occupational health, and the production, handling, storage and use of hazardous materials to prevent material environmental or other damage, and to limit the financial liability, which could result from such events. Environmental liabilities are recorded when the liability is probable and the costs can be reasonably estimated. Reportable Operating Segments Accounting Standards Codification (“ASC”) 280, “Segment Reporting,” establishes the standards for reporting information about segments in financial statements. Operating segments are defined as components of an enterprise for which separate financial information is available that is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing performance. Based on the related business nature and expected financial results criteria set forth in ASC 280, the Company has two reportable operating segments for financial reporting purposes. · Ethanol Production . Based on the nature of the products and production process and the expected financial results, the Company’s operations at its ethanol plant, including the production and sale of ethanol and its co-products, are aggregated into one financial reporting segment. · Natural Gas Pipeline . The Company has majority ownership in Agrinatural, through its wholly owned subsidiary, HLBE Pipeline, LLC, and operations of Agrinatural’s natural gas pipeline are aggregated into another financial reporting segment. 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 11 for further information.

GOING CONCERN

GOING CONCERN	12 Months Ended
	Oct. 31, 2020
GOING CONCERN
GOING CONCERN	2. GOING CONCERN The financial statements have been prepared on a going-concern basis, which contemplates the recoverability of assets and the satisfaction of liabilities in the normal course of business. The Company has suffered recurring operating and cash flow losses related to difficult market conditions and operating performance. The Company was out of compliance with certain debt covenants on October 31, 2020, for which a waiver was obtained from the lender. Subsequent to October 31, 2020, the Company had further instances of noncompliance with debt covenants and has forecasted that it is probable that there will be future instances of noncompliance with debt covenants within the next twelve months. These conditions result in the classification of all debt with the lender as current as of October 31, 2020. The Company has insufficient cash on hand and additional borrowing capacity, and current forecasts indicate insufficient cash flows from operations, to repay the debt if it were to come due as a result of covenant noncompliance. These factors raise substantial doubt about the Company's ability to continue as a going concern. While the Company believes the replacement of the boiler has improved the operating performance of the plant, and led to lower operating costs, market conditions have resulted in losses. The Company intends to source other capital sources, which may include re-negotiating their debt agreements and terms. At this time, there are no commitments to do so and we may not be successful in doing so.

RISKS AND UNCERTAINTIES

RISKS AND UNCERTAINTIES	12 Months Ended
	Oct. 31, 2020
RISKS AND UNCERTAINTIES
RISKS AND UNCERTAINTIES	3. 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 primarily derived from the sale and distribution of ethanol, distillers’ grains and corn oil 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 70%-90% of cost of goods sold. The Company’s operating and financial performance is largely driven by the prices at which it sells ethanol, distillers’ grains and corn oil, and the related costs 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. 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 2019 and 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 in and continue to result in negative operating margins, significantly lower cash flow from operations and substantial net losses. In response to the low margin environment, the Company idled its ethanol production from on or about March 30, 2020 through approximately May 31, 2020 and continues to monitor COVID-19 developments in order to determine whether further adjustments to production are warranted. Additionally, supply and demand for ethanol are impacted by federal and state legislation and regulation, most significantly the Renewable Fuels Standard (“RFS”), and any changes in legislation or regulation could cause the demand for ethanol to decline or its supply to increase, which could have a material adverse effect on our business, results of operations and financial condition, and the ability to operate at a profit. In May 2020, the EPA delivered its proposed rule to the White House Office of Management and Budget (“OMB”) to set 2021 RVOs. OMB is required to review the proposed rule before releasing it for public comment. The proposed 2021 RVOs are still undergoing OMB review, and therefore, the proposed rule has neither been released for public comment or finalized. As a result, the statutory November 30 deadline was not met. The EPA Administrator has stated that the COVID-19 pandemic resulted in significant delays and that the EPA is analyzing various factors in setting 2021 RVOs in light of the pandemic. On December 19, 2019, the EPA announced the final 2020 renewable volume requirements (“RVOs”), setting the RVOs for conventional ethanol at 15.0 billion gallons, advanced biofuels at 5.09 billion gallons and cellulosic ethanol at 0.59 billion gallons, for overall RVOs of 20.09 billion gallons for 2020. Although this final rule achieves the statutory RVO for conventional corn-based ethanol originally set by Congress when the RFS was enacted, it reduces the overall RVOs below the overall statutory level of 30 billion gallons. Current ethanol production capacity exceeds the EPA’s 2019 and 2020 RVOs that can be satisfied by corn-based ethanol. According to the RFS, if mandatory renewable fuel volumes are reduced by at least 20% for two consecutive years, the EPA is required to modify, or reset, statutory volumes through 2022. In October 2018, the Office of Management and Budget announced that the 20% thresholds “have been met or are expected to be met in the near future In May 2019, the EPA delivered a proposed RFS “reset” rule to the Office of Management and Budget. The “reset” remains on the OMB agenda. If the statutory RVOs are reduced as a result of such reset, it could have an adverse effect on the market price and demand for ethanol which would negatively impact our financial performance. Additionally, opponents of ethanol such as large oil companies will likely continue their efforts to repeal or reduce the RFS through lawsuits or lobbying of Congress. Successful reduction or repeal of the blending requirements of the RFS could result in a significant decrease in ethanol demand.

REVENUE

REVENUE	12 Months Ended
	Oct. 31, 2020
REVENUE
REVENUE	4. 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 fiscal year ended October 31, 2020: Ethanol Production Natural Gas Pipeline Total Ethanol $ $ — $ Distillers’ Grains — Corn Oil — Other — Natural Gas — Total Revenues $ $ $ 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 the 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.

CONCENTRATIONS

CONCENTRATIONS	12 Months Ended
	Oct. 31, 2020
CONCENTRATIONS
CONCENTRATIONS	6. CONCENTRATIONS The Company sold all of the ethanol, distillers’ grains, and corn oil produced at its plant to three customers under marketing agreements during the fiscal years ended October 31, 2020 and 2019. The percentage of total revenues attributable to each of the Company’s three major customers for the fiscal years ended October 31, 2020 and 2019 were as follows: October 31, 2020 October 31, 2019 Eco-Energy, Inc. - Ethanol Gavilon Ingredients, LLC - Distillers' Grains RPMG, Inc. - Corn Oil The percentage of total accounts receivable attributable to each of the Company’s three major customers at October 31, 2020 and 2019 were as follows: October 31, 2020 October 31, 2019 Eco-Energy, Inc. - Ethanol Gavilon Ingredients, LLC - Distillers' Grains RPMG, Inc. - Corn Oil

INVENTORY

INVENTORY	12 Months Ended
	Oct. 31, 2020
INVENTORY
INVENTORY	7. INVENTORY Inventory consists of the following at October 31: 2020 2019 Raw materials $ 2,440,997 $ 932,503 Work in process 713,037 732,243 Finished goods 2,677,095 3,157,429 Supplies 1,232,546 1,454,083 Totals $ 7,063,675 $ 6,276,258 The Company performs a lower cost or net realizable value analysis on inventory to determine if the market values of certain inventories are less than their carrying value, which is attributable primarily to decreases in market prices of corn and ethanol. Based on the lower of cost or net realizable value analysis, the Company recorded a loss on ethanol inventories, as a component of cost of goods sold, of approximately $204,000 for the fiscal year ended October 31, 2020. The Company recorded a loss on ethanol and corn inventories, as a component of cost of goods sold, of approximately $537,000 and $47,000 for the fiscal year ended October 31, 2019, respectively.

DERIVATIVE INSTRUMENTS

DERIVATIVE INSTRUMENTS	12 Months Ended
	Oct. 31, 2020
DERIVATIVE INSTRUMENTS
DERIVATIVE INSTRUMENTS	8. DERIVATIVE INSTRUMENTS The Company enters into corn, ethanol, and natural gas derivatives in order to protect cash flows from fluctuations caused by volatility in commodity prices for periods up to 24 months. These derivatives are put in place to protect gross profit margins from potentially adverse effects of market and price volatility on ethanol sales and corn purchase commitments where the prices are set at a future date. Although these derivative instruments serve the Company’s purpose as an economic hedge, they are not designated as effective hedges for accounting purposes. For derivative instruments that are not accounted for as hedges, or for the ineffective portions of qualifying hedges, the change in fair value is recorded through earnings in the period of change. As of October 31, 2020, the total notional amount of the Company’s outstanding corn derivative instruments was approximately 2,095,000 bushels, comprised of long corn futures positions on 325,000 bushels that were entered into to hedge forecasted ethanol sales through March 2021, and short corn futures positions on 1,770,000 bushels that were entered into to hedge forecasted corn purchases through July 2022 and are directly related to corn forward contracts. Additionally, there are corn options positions of 1,380,000 bushels through March 2021. There may be offsetting positions that are not shown on a net basis that could lower the notional amount of positions outstanding. As of October 31, 2020, the Company had approximately $514,000 in cash collateral (restricted cash) related to derivates held by a broker. The following table provides detail regarding the Company’s derivative financial instruments at October 31, 2020, none of which were designated as hedging instruments: Consolidated Balance Sheet Location Assets Liabilities Corn contracts Commodity derivative instruments $ — $ 173,928 Ethanol contracts Commodity derivative instruments 15,150 — Totals $ 15,150 $ 173,928 As of October 31, 2019, the total notional amount of the Company’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, the Company had approximately $52,000 in cash collateral (restricted cash) related to derivatives held by a broker. The following table provides detail regarding the Company’s derivative financial instruments at October 31, 2019, none of which were designated as hedging instruments: Consolidated Balance Sheet Location Assets Liabilities Corn contracts Commodity derivative instruments $ 20,060 $ — Ethanol contracts Commodity derivative instruments 75,763 — Totals $ 95,823 $ — The following table provides details regarding the gains (losses) from the Company’s derivative instruments in its consolidated statements of operations, none of which are designated as hedging instruments: Consolidated Statement of Operations Location 2020 2019 Corn contracts Cost of goods sold $ (1,069,393) $ 350,624 Ethanol contracts Revenues (130,673) 24,592 Total gain (loss) $ (1,200,066) $ 375,216

PROPERTY AND EQUIPMENT

PROPERTY AND EQUIPMENT	12 Months Ended
	Oct. 31, 2020
PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT	9. PROPERTY AND EQUIPMENT A summary of property and equipment is as follows: October 31, 2020 October 31, 2019 Land and improvements $ 9,111,838 $ 9,111,838 Plant buildings and equipment 88,879,395 88,708,522 Vehicles 700,959 700,959 Office buildings 735,864 735,864 Construction in progress 4,680,716 58,319 104,108,772 99,315,502 Less: accumulated depreciation (63,921,039) (59,907,307) Net property and equipment $ 40,187,733 $ 39,408,195 Depreciation expense totaled approximately $5,228,000 and $5,246,000 during the fiscal years ended October 31, 2020 and 2019, respectively. In July 2020, the Company experienced major issues with its boiler, which negatively impacted production. The Company operated with temporary boilers from August 2020 through part of January 2021. The Company determined that the purchase and installation of a new boiler would be more economical and efficient than attempted repairs to the failing boiler. On September 2, 2020, the Company received notice of approval of the new boiler from the Minnesota Pollution Control Agency. As a result, the Company abandoned the failing boiler at that time. The Company recorded the loss on disposal as a component of operating expenses during the fourth fiscal quarter of the fiscal year ended October 31, 2020 of approximately $1.8 million. The new boiler was placed in service in January 2021 at an estimated cost of approximately $5.2 million.

DEBT FACILITIES

DEBT FACILITIES	12 Months Ended
	Oct. 31, 2020
DEBT FACILITIES
DEBT FACILITIES	10. DEBT FACILITIES Long-term debt consists of the following: October 31, 2020 October 31, 2019 Amended revolving term note payable to lending institution, see terms below. $ 7,891,426 $ — Single advance term note payable to lending institution, see terms below. 3,000,000 — 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 October 2021. The Company 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. 300,551 634,180 SBA Paycheck Protection Program Loan 595,693 — Totals 11,787,670 634,180 Less amounts due within one year 11,492,059 333,977 Net long-term debt $ 295,611 $ 300,203 Revolving Term Note The 2020 Credit Facility includes an amended and restated revolving term loan with an $8,000,000 principal commitment, which was increased to a $13,000,000 principal commitment in June 2020. 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, for the period of April 30, 2020 through December 31, 2020, and increasing to $10 million beginning January 1, 2021. Additionally, the amendment excludes current portion of leases 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. In May 2020, HLBE had an event of non-compliance related to the minimum working capital requirement as defined in the 2020 Credit Facility. The Company has obtained a waiver from its lender for this event of non-compliance. For the fiscal year ended October 31, 2020, HLBE had events of non-compliance related to the working capital covenant and the debt service coverage ratio. HLBE has obtained a waiver from its lender for the non-compliance events. Subsequent to October 31, 2020, HLBE had further events of non-compliance and has forecasted that it is probable that there will be future instances of non-compliance with debt covenants within the next twelve months. As a result, approximately $10,300,000 of long term debt has been reclassified as current maturities. As part of the 2020 Credit Facility closing, the Company 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 2020 Credit Facility. The Company 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 $13,000,000. 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 3.35% above the higher of 0.00% or the One-Month London Interbank Offered Rate (“LIBOR”) Index rate, which totaled 3.51% at October 31, 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. Single Advance Term Note In June 2020, HLBE entered into a single advance term note with a $3,000,000 principal commitment, with the purpose to finance the construction of a new grain bin and provide principal reduction on the Revolving Term Note. The interest rate is fixed at 3.80%. Principal with interest is to be paid in 10 consecutive, semi-annual installments, with the first installment due on December 20, 2020 and the last installment due on June 20, 2025. The note is secured as provided in the 2020 Credit Facility. 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. Negotiable Promissory Note In December 2020, we entered into a negotiable promissory note with GFE with a $5,000,000 principal commitment. Interest on the loan accrues at a variable weekly rate equal to the higher of 1.00% or the One-Month LIBOR Index rate, plus 3.35%. The note was due on demand, and accrued interest must be paid in full the first business day of each month. The note is unsecured and may be prepaid at any time without penalty. In January 2021, we borrowed the $5,000,000 on the promissory note. In February 2021, GFE agreed to modify the promissory note to remove the due on demand feature, instead agreeing that GFE will not require any principal repayment on the loan until March 2023. However, should there be future violations of the Compeer loan covenants, those violations would also be considered a default on this promissory note. Short Term Revolving Promissory Note In February 2021, HLBE entered into a revolving promissory note with its lender in order to finance the operating needs of HLBE. The revolving promissory note is subject to the 2020 Credit Facility. Under the terms, HLBE may borrow, repay and reborrow up to the aggregate principal commitment amount of $5,000,000. Final payment of amounts borrowed under the revolving promissory note is June 1, 2021. Interest of the loan accrues at a variable weekly rate equal to 3.35% above the higher of 0.00% or the One-Month London Interbank Offered Rate (“LIBOR”) Index rate and is payable monthly in arrears. In addition, HLBE agreed to pay an unused commitment fee on the unused available portion of the loan at the rate of 0.50% per annum payable monthly in arrears. Estimated annual maturities of long-term debt at October 31, 2020 are as follows based on the most recent debt agreements: 2021 $ 11,492,059 2022 295,611 Total debt $ 11,787,670

MEMBERS' EQUITY

MEMBERS' EQUITY	12 Months Ended
	Oct. 31, 2020
MEMBERS' EQUITY.
MEMBERS' EQUITY	11. 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.

LEASES

LEASES	12 Months Ended
	Oct. 31, 2020
LEASES
LEASES	12. LEASES 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 $10.9 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 twelve months ended October 31, 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 fiscal year ended October 31, 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 maturities of the Company’s operating lease liabilities as of October 31, 2020: Twelve Months Ended October 31, 2021 $ 1,767,000 2022 1,767,000 2023 1,767,000 2024 1,669,500 2025 1,650,000 Thereafter 2,162,500 Totals 10,783,000 Less: Amount representing interest 1,491,751 Lease liabilities $ 9,291,249 Lease expense for the Company’s leases was approximately $2,331,000 and $2,374,000 for the fiscal years ended October 31, 2020 and 2019, respectively.

INCOME TAXES

INCOME TAXES	12 Months Ended
	Oct. 31, 2020
INCOME TAXES
INCOME TAXES	13. INCOME TAXES The differences between consolidated financial statement basis and tax basis of assets and liabilities are estimated as follows at October 31: 2020 2019 Consolidated financial statement basis of assets $ 63,080,181 $ 56,595,915 Plus: Organization and start-up costs capitalized for tax purposes, net 355,152 502,566 Less: Unrealized gains on commodity derivative instruments (15,150) (95,823) Less: Accumulated tax depreciation and amortization greater than financial statement basis (56,055,250) (56,386,730) Book to tax operating lease right of use assets (9,291,249) — Plus: Impairment charge 27,844,579 27,844,579 Income tax basis of assets $ 25,918,263 $ 28,460,507 Financial Statement basis of liabilities $ 29,955,313 $ 6,995,064 Accrued rail car maintenance (596,924) (551,000) Book to tax operating lease liabilities (9,291,249) — Other Accruals (176,828) (183,891) Income tax basis of liabilities $ 19,890,312 $ 6,260,173

EMPLOYEE BENEFIT PLANS

EMPLOYEE BENEFIT PLANS	12 Months Ended
	Oct. 31, 2020
EMPLOYEE BENEFIT PLANS
EMPLOYEE BENEFIT PLANS	14. EMPLOYEE BENEFIT PLANS The Company has a defined contribution plan available to all of its qualified employees. The Company contributes a match of 50% of the participant’s salary deferral up to a maximum of 4% of the employee’s salary. The Company contributions totaled approximately $89,000 and $92,000 for the fiscal years ended October 31, 2020 and 2019, respectively.

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	12 Months Ended
	Oct. 31, 2020
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS	15. RELATED PARTY TRANSACTIONS Granite Falls Energy, LLC The Company has a management services agreement with Granite Falls Energy, LLC (“GFE”), a related party. Under the terms of the agreement, GFE supplies its own personnel to act as part-time officers and managers of the Company for the positions of Chief Executive Officer, Chief Financial Officer, and Commodity Risk Manager and the Company pays GFE 50% of the total salary, bonuses and other expenses and costs for the three management positions. The management services agreement automatically renews for successive one-year terms unless the Company or GFE gives the other party 90-day written notice of termination prior to expiration of the then-current term. The management services agreement may also be terminated by either party for cause under certain circumstances. Total expenses under this agreement were $510,000 for the fiscal year ended October 31, 2020, of which approximately $63,000 is included in accounts payable at October 31, 2020, and $438,000 for the fiscal year ended October 31, 2019, of which approximately $39,000 is included in accounts payable at October 31, 2019. In February 2020, Agrinatural entered into a natural gas local distribution company management agreement with GFE for, among other purposes, the purpose of sharing certain management employees. The agreement automatically renews for successive one-year terms unless and until Agrinatural or GFE gives the other party 30 days’ written notice of termination prior to expiration of the initial term or the start of a renewal term. The agreement may also be terminated by either party for cause under certain circumstances. Under the agreement, GFE supplies its personnel to act as part-time officers of Agrinatural for the positions of chief executive officer and chief financial officer. In return, Agrinatural pays GFE $9,000 per month, excluding fees for third-party services. GFE responsible for and agreed to directly pay salary, wages, and/or benefits to the persons providing management services under the agreement. Total expenses under this agreement were $81,000 for the fiscal year ended October 31, 2020. In December 2020, HLBE entered into a negotiable promissory note with GFE with a $5,000,000 principal commitment. Interest on the loan accrues at a variable weekly rate equal to the higher of 1.00% or the One-Month LIBOR Index rate, plus 3.35%. The note was due on demand, and accrued interest must be paid in full the first business day of each month. The note is unsecured and may be prepaid at any time without penalty. In January 2021, we borrowed the $5,000,000 on the promissory note. In February 2021, GFE agreed to modify the promissory note to remove the due on demand feature, instead agreeing that GFE will not require any principal repayment on the loan until March 2023. However, should there be future violations of the Compeer loan covenants, those violations would also be considered a default on this promissory note. Corn Purchase - Members The Company purchased corn from members of its Board of Governors of approximately $12,545,000 in fiscal year 2020, o f which approximately $171,000 is included in accounts payable at October 31, 2020 and $11,478,000 in fiscal year 2019, o f which approximately $470,000 is included in accounts payable at October 31, 2019.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	12 Months Ended
	Oct. 31, 2020
COMMITMENTS AND CONTINGENCIES.
COMMITMENTS AND CONTINGENCIES	16. COMMITMENTS AND CONTINGENCIES Water Agreements In September 2019, the Company entered into an industrial water supply development and distribution agreement, effective as of February 1, 2019, with the City of Heron Lake for 10 years. The Company has the exclusive rights to the first 600 gallons per minute of capacity that is available from the well. In consideration, the Company will pay flow charges at a rate of $0.60 cents per thousand gallons of water, in addition to a fixed monthly charge of $1,500 per month. The flow charges are placed into a dedicated fund for operation and maintenance of the well, and are capped at $300,000 at the end of each year. The Company is also responsible for paying 55% of operation and maintenance costs in excess of the $300,000 cap, in the first two years of the agreement. Thereafter, the percentage payable by the Company is determined based on a two-year average of the Company’s usage compared to the total amount of industrial water supplied to the Company and a third-party customer of the City of Heron Lake. Under the previous industrial water supply development and distribution agreement with the City of Heron Lake, the Company paid one half of the City of Heron Lake’s water well bond payments of $735,000, plus a 5% administrative fee, totaling approximately $594,000, and operating costs, relative to the Company’s water usage, plus a 10% profit. The Company recorded an assessment of approximately $367,000 with long-term debt as described in Note 9. The Company paid operating and administrative expenses of approximately $12,000 per year. In May 2006, the Company entered into a water treatment agreement with the City of Heron Lake and Jackson County for 30 years. The Company will pay for operating and maintenance costs of the plant in exchange for receiving treated water. In addition, the Company agreed to an assessment for a portion of the capital costs of the water treatment plant. The Company recorded assessments with long-term debt of $500,000 and $3,550,000 in fiscal 2007 and 2006, respectively, as described in Note 9. The Company paid operating and maintenance expenses of approximately $77,000 and $52,000 in fiscal 2020 and 2019, respectively. Ethanol Marketing Agreement The Company has a marketing agreement (“Eco Agreement”) with Eco-Energy, Inc., an unrelated party (“Eco-Energy”) for the sale of ethanol. Under this ethanol agreement, Eco-Energy purchases, markets and resells 100% of the ethanol produced at the Company’s ethanol production facility and arranges for the transportation of ethanol. The Company pays Eco-Energy a marketing fee per gallon of ethanol sold in consideration of Eco-Energy’s services, as well as a fixed lease fee for rail cars leased from Eco-Energy to the Company. The marketing fee was negotiated based on prevailing market-rate conditions for comparable ethanol marketing services. The initial term of Eco Agreement continued through December 31, 2016, with automatic renewals for additional three terms of three year periods unless terminated by either party by providing written notice to the other party at least 3 months prior to the end of the then current term. During the third fiscal quarter of 2016, the Company amended the Eco Agreement. In October 2019, the Company amended the Eco Agreement, which provides an extension of the term of the agreement through December 31, 2020, with automatic renewals for additional consecutive terms of one year unless either party provides written notice to the other at least 90 days prior to the end of the then-current term. Additionally, the amended Eco Agreement provides for certain negotiated changes to the marketing fees payable to Eco-Energy and payment terms based on prevailing market-rate conditions for comparable ethanol marketed services. Ethanol marketing fees and commissions totaled approximately $265,000 and $635,000 for the fiscal years ended October 31, 2020 and 2019, respectively. Ethanol Forward Contracts At October 31, 2020, the Company had fixed and basis contracts to sell approximately $12,350,000 of ethanol for various delivery periods through December 2020, which approximates 88% of its anticipated ethanol sales for that period. Distillers’ Grains Marketing Agreement Gavilon Ingredients, LLC, an unrelated party (“Gavilon”), serves as the distillers’ grains marketer for our plant pursuant to a distillers’ grains off-take agreement. Pursuant to our agreement with Gavilon, Gavilon purchases all of the distillers’ grains produced at our ethanol plant. We pay Gavilon a service fee for its services under this agreement. The contract commenced on November 1, 2013 with an initial term of six months, and will continue to remain in effect until terminated by either party at its unqualified option, by providing written notice of not less than 60 days to the other party. Distillers’ grains commissions totaled approximately $187,000 and $287,000 for the fiscal years ended October 31, 2020 and 2019, respectively. Distillers’ Grains Forward Contracts At October 31, 2020, the Company had forward contracts to sell approximately $5,356,000 of distillers’ grains for delivery through March 2021, which approximates 45% of its anticipated distillers’ grains sales during that period. Corn Oil Marketing Agreement RPMG, Inc., an unrelated party, markets the corn oil produced at our ethanol plant pursuant to a corn oil marketing agreement. We pay RPMG a commission based on each pound of corn oil sold by RPMG under the agreement. The contract commenced on November 1, 2013 with an initial term of one year and will continue to remain in effect until terminated by either party at its unqualified option, by providing written notice of not less than 90 days to the other party. Corn oil commissions totaled approximately $61,000 and $71,000 for the fiscal years ended October 31, 2020 and 2019, respectively. Corn Oil Forward Contracts At October 31, 2020, the Company had forward contracts to sell approximately $633,000 of corn oil for delivery through December 2020, which approximates 80% of its anticipated corn oil sales for that period. Contract for Natural Gas Pipeline to Plant The Company has a facilities agreement with Northern Border Pipeline Company which allows us access to an existing interstate natural gas pipeline located approximately 16 miles north from the plant. Agrinatural was formed to own and operate the pipeline and transports gas to the Company pursuant to a transportation agreement. The Company also has a base agreement for the sale and purchase of natural gas with Constellation NewEnergy-Gas Division, LLC (“Constellation”), pursuant to which it buys all of its natural gas from Constellation. This agreement runs until March 31, 2022. Corn Forward Contracts At October 31, 2020, the Company had cash and basis contracts for forward corn purchase commitments for approximately 2,462,000 bushels for deliveries through July 2022. Given the uncertainty of future ethanol and corn prices, the Company 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 an impairment loss existed of approximately $47,000 at October 31, 2020. The impairment expense is recorded as a component of cost of goods sold. No impairment loss existed at October 31, 2019. Rail Car Rehabilitation Costs The Company leases 50 hopper rail cars under a multi-year agreement which ends in May 2027. Under the agreement, the Company 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 October 31, 2020 and 2019 to be approximately $597,000 and $551,000, respectively. During the years ended October 31, 2020 and 2019, the Company has recorded an expense in cost of goods totaling $85,000 and $551,000, respectively. The Company accrues the estimated cost of railcar damages over the term of the lease as the damages are incurred.

BUSINESS SEGMENTS

BUSINESS SEGMENTS	12 Months Ended
	Oct. 31, 2020
BUSINESS SEGMENTS
BUSINESS SEGMENTS	17. BUSINESS 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 in Note 1. 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 for the fiscal years ended October 31: Revenue: 2020 2019 Ethanol production $ 74,622,495 $ 105,395,553 Natural gas pipeline 2,924,684 3,182,958 Eliminations (1,517,338) (1,751,066) Total Revenue $ 76,029,841 $ 106,827,445 Operating Income (Loss): 2020 2019 Ethanol production $ (15,330,752) $ (6,594,653) Natural gas pipeline 1,459,545 1,878,935 Eliminations (498,562) (666,827) Operating Loss $ (14,369,769) $ (5,382,545) Assets: 2020 2019 Ethanol production $ 49,613,394 $ 44,097,379 Natural gas pipeline 13,466,787 12,498,536 Total Assets $ 63,080,181 $ 56,595,915

SUMMARY OF SIGNIFICANT ACCOUN_2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	12 Months Ended
	Oct. 31, 2020
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Nature of Business	Nature of Business Heron Lake BioEnergy, LLC owns and operates an ethanol plant near Heron Lake, Minnesota with a permitted capacity of approximately 72.3 million gallons per year of undenatured ethanol on a twelve-month rolling sum basis. In addition, Heron Lake BioEnergy, LLC produces and sells distillers’ grains with solubles and corn oil as co-products of ethanol production. Heron Lake BioEnergy, LLC’s wholly owned subsidiary, HLBE Pipeline Company, LLC (“HLBE Pipeline Company”), is the sole owner of Agrinatural Gas, LLC (“Agrinatural”). Agrinatural operates a natural gas pipeline that provides natural gas to Heron Lake BioEnergy, LLC’s ethanol production facility and other customers through a connection with natural gas pipeline facilities of Northern Border Pipeline Company in Cottonwood County, Minnesota. Beginning as of December 11, 2019, HLBE holds a 100% interest in Agrinatural. At October 31, 2019, HLBE held a 73% interest in Agrinatural.
Principles of Consolidation	Principles of Consolidation The consolidated financial statements include the accounts of Heron Lake BioEnergy, LLC and its wholly owned subsidiary, HLBE Pipeline Company (collectively, “the Company”). 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 attributed to the remaining 27% non-controlling interest identified separately in the accompanying consolidated balance sheets and statements of operations through December 11, 2019 when the remaining non-controlling interest was acquired. All significant intercompany balances and transactions are eliminated in consolidation.
Fiscal Reporting Period	Fiscal Reporting Period The Company’s fiscal year end for reporting financial operations is October 31.
Accounting Estimates	Accounting Estimates Management uses estimates and assumptions in preparing these consolidated financial statements in accordance with U.S. 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, valuation of commodity derivative instruments and inventory, evaluation of rail car rehabilitation costs, the assumptions used in the impairment analysis of long-lived assets, and inventory purchase and sale 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.
Non-controlling Interest	Non-controlling Interest Amounts recorded as non-controlling interest on the October 31, 2019 consolidated balance sheet relates to the net investment by an unrelated party in Agrinatural through December 11, 2019 when the remaining non-controlling interest was acquired.
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 three distinct marketing companies as discussed 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, Gavilon, Inc, to sell one hundred percent of the distillers grains it produces at the plant. Gavilon 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 Gavilon and the Company. Our performance obligations consist of our obligation to deliver distillers grains 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. · Agrinatural generates revenue from the transportation of natural gas to residential and commercial customers. Revenue is recognized at the point when natural gas is delivered at the transaction price established in the contract.
Cost of Goods Sold	Cost of Goods Sold The primary components of cost of goods sold for the production of ethanol and related co-products are corn, energy, raw materials, overhead, depreciation, railcar rehabilitation costs, and direct labor.
Operating Expenses	Operating Expenses The primary components of operating expenses are salaries and expenses for administrative employees, professional fees, board of governor expenses, loss on disposal of assets and property taxes.
Cash	Cash The Company maintains its accounts at multiple financial institutions. At times throughout the year, the Company’s cash balances may exceed amounts insured by the Federal Deposit Insurance Corporation and the Securities Investor Protection Corporation. The Company does not believe it is exposed to any significant credit risk on its cash balances.
Restricted Cash	Restricted Cash The Company is periodically required to maintain cash balances at its broker related to derivative instrument positions as discussed in Note 7.
Accounts Receivable	Accounts Receivable Credit terms are extended to customers in the normal course of business. The Company performs ongoing credit evaluations of its customers’ financial condition and, generally, requires no collateral. Accounts receivable are recorded at their estimated net realizable value. Accounts are considered past due if payment is not made on a timely basis in accordance with the Company’s credit terms. Accounts considered uncollectible are written off. The Company follows a policy of providing an allowance for doubtful accounts; however, based on historical experience, and its evaluation of the current status of receivables, the Company is of the belief that such accounts will be collectible in all material respects and thus an allowance was not necessary at October 31, 2020 or 2019. It is at least possible this estimate will change in the future.
Inventory	Inventory Inventory is stated at the lower of cost or net realizable value. Cost for all inventories is determined using the first in first out method (FIFO). Net realizable value is the estimated selling prices in the ordinary course of business less reasonably predictable costs of completion, disposal, and transportation. Inventory consists of raw materials, work in process, finished goods, and 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 in 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 consolidated 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 7.
Property and Equipment	Property and Equipment Property and equipment are recorded at cost. Depreciation is provided over an estimated useful life by use of the straight-line deprecation method. Maintenance and repairs are expensed as incurred; major improvements and betterments are capitalized. Construction in progress expenditures will be depreciated using the straight-line method over their estimated useful lives once the assets are placed into service. Depreciable useful lives are as follows: Land improvements 15 Years Plant building and equipment 7-40 Years Vehicles and other equipment 5-7 Years Office buildings and equipment 3-40 Years
Long-Lived Assets	Long-Lived Assets Long-lived assets, such as property and equipment, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. When determining impairment losses, a long lived asset should be grouped with other assets or liabilities at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets or liabilities. If circumstances require a long-lived asset to be tested for possible impairment, the Company first compares undiscounted cash flows expected to be generated by an asset to the carrying value of the asset. If the carrying value of the long-lived asset is not recoverable on an undiscounted cash flow basis, impairment is recognized to the extent that the carrying value exceeds its fair value. Fair value is determined through various valuation techniques including, but not limited to, discounted cash flow models, quoted market values and third-party independent appraisals, as considered necessary. No impairment expense was recorded during fiscal 2020 or 2019.
Fair Value of Financial Instruments	Fair Value of Financial Instruments The Company follows guidance for accounting for fair value measurements of financial assets and liabilities and for fair value measurements of nonfinancial items that are recognized or disclosed at fair value in the consolidated financial statements on a recurring and nonrecurring basis. The guidance establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to measurements involving significant unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are as follows: · Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. · Level 2 inputs include: 1. Quoted prices in active markets for similar assets or liabilities. 2. Quoted prices in markets that are observable for the asset or liability either directly or indirectly, for substantially the full term of the asset or liability. 3. Inputs that derived primarily from or corroborated by observable market date by correlation or other means. · Level 3 inputs are unobservable inputs for the asset or liability. The level in the fair value hierarchy within which a fair measurement in its entirety falls is based on the lowest level input that is significant to the fair value measurement in its entirety. Except for those assets and liabilities which are required by authoritative accounting guidance to be recorded at fair value, the Company has elected not to record any other assets or liabilities at fair value. No events occurred during the fiscal years ended October 31, 2020 or 2019 that required adjustment to the recognized balances of assets or liabilities, which are recorded at fair value on a nonrecurring basis. The carrying value of cash, accounts receivable, accounts payable and accrued liabilities approximates fair value due to the short maturity of these instruments. The fair value of debt has been estimated using discounted cash flow analysis based upon the Company’s current incremental borrowing rates for similar types of financing arrangements. The fair value of outstanding debt will fluctuate with changes in applicable interest rates. Fair value will exceed carrying value when the current market interest rate is lower than the interest rate at which the debt was originally issued. The Company believes the carrying amount of its debt facilities approximates the fair value.
Income Taxes	Income Taxes The Company is treated as a partnership for federal and state income tax purposes and generally does not incur income taxes. Instead, its earnings and losses are included in the income tax returns of the members. Therefore, no provision or liability for federal or state income taxes has been included in these financial statements. Differences between financial statement basis of assets and tax basis of assets is related to capitalization and amortization of organization and start-up costs for tax purposes, whereas these costs are expensed for financial statement purposes. In addition, the Company uses the alternative depreciation system (ADS) for tax depreciation instead of the straight-line method that is used for book depreciation, which also causes temporary differences. The Company’s tax year end is December 31. The Company had no significant uncertain tax positions as of October 31, 2020 or 2019 that would require disclosure, primarily due to the partnership tax status. The Company recognizes and measures tax benefits when realization of the benefits is uncertain under a two-step approach. The first step is to determine whether the benefit meets the more-likely-than-not condition for recognition and the second step is to determine the amount to be recognized based on the cumulative probability that exceeds 50%. Primarily due to the Company’s tax status as a partnership, the adoption of this guidance had no material impact on the Company’s financial condition or results of operations. The Company files income tax returns in the U.S. federal and Minnesota state jurisdictions. The Company is no longer subject to U.S. federal and state income tax examinations by tax authorities for years before 2017.
Net Income (Loss) per Unit	Net Income (Loss) per Unit Basic net income (loss) per unit is computed by dividing net income by the weighted average number of members’ units outstanding during the period. Diluted net income or loss per unit is computed by dividing net income by the weighted average number of members’ units and members’ unit equivalents outstanding during the period.
Environmental Liabilities	Environmental Liabilities The Company’s operations are subject to environmental laws and regulations adopted by various governmental entities in the jurisdiction in which it operates. These laws require the Company to investigate and remediate the effects of the release or disposal of materials at its location. Accordingly, the Company has adopted policies, practices, and procedures in the areas of pollution control, occupational health, and the production, handling, storage and use of hazardous materials to prevent material environmental or other damage, and to limit the financial liability, which could result from such events. Environmental liabilities are recorded when the liability is probable and the costs can be reasonably estimated.
Reportable Operating Segments	Reportable Operating Segments Accounting Standards Codification (“ASC”) 280, “Segment Reporting,” establishes the standards for reporting information about segments in financial statements. Operating segments are defined as components of an enterprise for which separate financial information is available that is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing performance. Based on the related business nature and expected financial results criteria set forth in ASC 280, the Company has two reportable operating segments for financial reporting purposes. · Ethanol Production . Based on the nature of the products and production process and the expected financial results, the Company’s operations at its ethanol plant, including the production and sale of ethanol and its co-products, are aggregated into one financial reporting segment. · Natural Gas Pipeline . The Company has majority ownership in Agrinatural, through its wholly owned subsidiary, HLBE Pipeline, LLC, and operations of Agrinatural’s natural gas pipeline are aggregated into another financial reporting segment.
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 11 for further information.

SUMMARY OF SIGNIFICANT ACCOUN_3

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	12 Months Ended
	Oct. 31, 2020
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Schedule of depreciable useful lives of property and equipment	Land improvements 15 Years Plant building and equipment 7-40 Years Vehicles and other equipment 5-7 Years Office buildings and equipment 3-40 Years

REVENUE (Tables)

REVENUE (Tables)	12 Months Ended
	Oct. 31, 2020
REVENUE
Schedule of disaggregated revenue by source	Ethanol Production Natural Gas Pipeline Total Ethanol $ $ — $ Distillers’ Grains — Corn Oil — Other — Natural Gas — Total Revenues $ $ $ Ethanol Production Natural Gas Pipeline Total Ethanol $ $ — $ Distillers’ Grains — Corn Oil — Other — Natural Gas — Total Revenues $ $ $

FAIR VALUE MEASUREMENTS (Tables

FAIR VALUE MEASUREMENTS (Tables)	12 Months Ended
	Oct. 31, 2020
FAIR VALUE MEASUREMENTS
Schedule of assets and liabilities accounted for on a recurring basis	The following table sets forth, by level, the Company assets that were accounted for at fair value on a recurring basis at October 31, 2020: Fair Value Measurement Using Carrying Amount in Quoted Prices Significant Other Significant Consolidated Balance Sheet Active Markets Observable Inputs Unobservable inputs Financial Assets: Fair Value (Level 1) (Level 2) (Level 3) Commodity Derivative instruments - Ethanol $ 15,150 $ 15,150 $ 15,150 $ — $ — Financial Liabilities: Commodity Derivative instruments - Corn $ 173,928 $ 173,928 $ 173,928 $ — $ — Accounts payable (1) $ 553,248 $ 553,248 — $ 553,248 — The following table sets forth, by level, the Company assets that were accounted for at fair value on a recurring basis at October 31, 2019: Fair Value Measurement Using Carrying Amount in Quoted Prices in Significant Other Significant Consolidated Active Markets Observable Inputs Unobservable Inputs Financial Assets: Balance Sheet Fair Value (Level 1) (Level 2) (Level 3) Commodity Derivative instruments - Corn $ 20,060 $ 20,060 $ 20,060 $ — $ — Commodity Derivative instruments - Ethanol $ 75,763 $ 75,763 $ 75,763 $ — $ — (1)

CONCENTRATIONS (Tables)

CONCENTRATIONS (Tables)	12 Months Ended
	Oct. 31, 2020
Customer | Total revenues
CONCENTRATIONS
Schedule of concentration risk	October 31, 2020 October 31, 2019 Eco-Energy, Inc. - Ethanol Gavilon Ingredients, LLC - Distillers' Grains RPMG, Inc. - Corn Oil
Credit | Accounts receivable
CONCENTRATIONS
Schedule of concentration risk	October 31, 2020 October 31, 2019 Eco-Energy, Inc. - Ethanol Gavilon Ingredients, LLC - Distillers' Grains RPMG, Inc. - Corn Oil

INVENTORY (Tables)

INVENTORY (Tables)	12 Months Ended
	Oct. 31, 2020
INVENTORY
Schedule of inventory	2020 2019 Raw materials $ 2,440,997 $ 932,503 Work in process 713,037 732,243 Finished goods 2,677,095 3,157,429 Supplies 1,232,546 1,454,083 Totals $ 7,063,675 $ 6,276,258

DERIVATIVE INSTRUMENTS (Tables)

DERIVATIVE INSTRUMENTS (Tables)	12 Months Ended
	Oct. 31, 2020
DERIVATIVE INSTRUMENTS
Schedule of derivative instruments	The following table provides detail regarding the Company’s derivative financial instruments at October 31, 2020, none of which were designated as hedging instruments: Consolidated Balance Sheet Location Assets Liabilities Corn contracts Commodity derivative instruments $ — $ 173,928 Ethanol contracts Commodity derivative instruments 15,150 — Totals $ 15,150 $ 173,928 The following table provides detail regarding the Company’s derivative financial instruments at October 31, 2019, none of which were designated as hedging instruments: Consolidated Balance Sheet Location Assets Liabilities Corn contracts Commodity derivative instruments $ 20,060 $ — Ethanol contracts Commodity derivative instruments 75,763 — Totals $ 95,823 $ —
Schedule of gains (losses) from derivative instruments	Consolidated Statement of Operations Location 2020 2019 Corn contracts Cost of goods sold $ (1,069,393) $ 350,624 Ethanol contracts Revenues (130,673) 24,592 Total gain (loss) $ (1,200,066) $ 375,216

PROPERTY AND EQUIPMENT (Tables)

PROPERTY AND EQUIPMENT (Tables)	12 Months Ended
	Oct. 31, 2020
PROPERTY AND EQUIPMENT
Schedule of property and equipment	October 31, 2020 October 31, 2019 Land and improvements $ 9,111,838 $ 9,111,838 Plant buildings and equipment 88,879,395 88,708,522 Vehicles 700,959 700,959 Office buildings 735,864 735,864 Construction in progress 4,680,716 58,319 104,108,772 99,315,502 Less: accumulated depreciation (63,921,039) (59,907,307) Net property and equipment $ 40,187,733 $ 39,408,195

DEBT FACILITIES (Tables)

DEBT FACILITIES (Tables)	12 Months Ended
	Oct. 31, 2020
DEBT FACILITIES
Schedule of long-term debt	October 31, 2020 October 31, 2019 Amended revolving term note payable to lending institution, see terms below. $ 7,891,426 $ — Single advance term note payable to lending institution, see terms below. 3,000,000 — 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 October 2021. The Company 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. 300,551 634,180 SBA Paycheck Protection Program Loan 595,693 — Totals 11,787,670 634,180 Less amounts due within one year 11,492,059 333,977 Net long-term debt $ 295,611 $ 300,203
Schedule of estimated maturities of long-term debt	2021 $ 11,492,059 2022 295,611 Total debt $ 11,787,670

LEASES (Tables)

LEASES (Tables)	12 Months Ended
	Oct. 31, 2020
LEASES
Summary of maturities of operating lease liabilities	Twelve Months Ended October 31, 2021 $ 1,767,000 2022 1,767,000 2023 1,767,000 2024 1,669,500 2025 1,650,000 Thereafter 2,162,500 Totals 10,783,000 Less: Amount representing interest 1,491,751 Lease liabilities $ 9,291,249

INCOME TAXES (Tables)

INCOME TAXES (Tables)	12 Months Ended
	Oct. 31, 2020
INCOME TAXES
Schedule of differences between financial statement basis and tax basis of assets	2020 2019 Consolidated financial statement basis of assets $ 63,080,181 $ 56,595,915 Plus: Organization and start-up costs capitalized for tax purposes, net 355,152 502,566 Less: Unrealized gains on commodity derivative instruments (15,150) (95,823) Less: Accumulated tax depreciation and amortization greater than financial statement basis (56,055,250) (56,386,730) Book to tax operating lease right of use assets (9,291,249) — Plus: Impairment charge 27,844,579 27,844,579 Income tax basis of assets $ 25,918,263 $ 28,460,507 Financial Statement basis of liabilities $ 29,955,313 $ 6,995,064 Accrued rail car maintenance (596,924) (551,000) Book to tax operating lease liabilities (9,291,249) — Other Accruals (176,828) (183,891) Income tax basis of liabilities $ 19,890,312 $ 6,260,173

BUSINESS SEGMENTS (Tables)

BUSINESS SEGMENTS (Tables)	12 Months Ended
	Oct. 31, 2020
BUSINESS SEGMENTS
Schedule of business segments	Ethanol Production: Ethanol and co-product production and sales Natural gas pipeline: Ownership and operations of natural gas pipeline
Reconciliation of segment revenue	Revenue: 2020 2019 Ethanol production $ 74,622,495 $ 105,395,553 Natural gas pipeline 2,924,684 3,182,958 Eliminations (1,517,338) (1,751,066) Total Revenue $ 76,029,841 $ 106,827,445
Schedule of operating income (loss) and total assets	Operating Income (Loss): 2020 2019 Ethanol production $ (15,330,752) $ (6,594,653) Natural gas pipeline 1,459,545 1,878,935 Eliminations (498,562) (666,827) Operating Loss $ (14,369,769) $ (5,382,545) Assets: 2020 2019 Ethanol production $ 49,613,394 $ 44,097,379 Natural gas pipeline 13,466,787 12,498,536 Total Assets $ 63,080,181 $ 56,595,915

SUMMARY OF SIGNIFICANT ACCOUN_4

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Nature of Business (Details) - gal gal in Millions	Oct. 31, 2020	Dec. 11, 2019	Oct. 31, 2019
Agrinatural, LLC
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Noncontrolling interest, ownership percentage by noncontrolling owners			27.00%
Ethanol production
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Operating capacity of Ethanol plant owned and operated	72.3
HLBE Pipeline Company, LLC | Agrinatural, LLC
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Ownership percentage		100.00%	73.00%

SUMMARY OF SIGNIFICANT ACCOUN_5

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Revenue Recognition (Details)	12 Months Ended
	Oct. 31, 2020item
CONCENTRATIONS
Number of distinct marketing companies	3
Ethanol | Eco-Energy, Inc. | Revenue from product line
CONCENTRATIONS
Concentration percentage	100.00%
Distillers' Grains | Gavilon, Inc. | Revenue from product line
CONCENTRATIONS
Concentration percentage	100.00%
Corn Oil | RPMG, Inc. | Revenue from product line
CONCENTRATIONS
Concentration percentage	100.00%

SUMMARY OF SIGNIFICANT ACCOUN_6

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Property and Equipment (Details)	12 Months Ended
	Oct. 31, 2020
Land improvements
Property and Equipment
Depreciable useful life	15 years
Plant building and equipment | Minimum
Property and Equipment
Depreciable useful life	7 years
Plant building and equipment | Maximum
Property and Equipment
Depreciable useful life	40 years
Vehicles and other equipment | Minimum
Property and Equipment
Depreciable useful life	5 years
Vehicles and other equipment | Maximum
Property and Equipment
Depreciable useful life	7 years
Office buildings and equipment | Minimum
Property and Equipment
Depreciable useful life	3 years
Office buildings and equipment | Maximum
Property and Equipment
Depreciable useful life	40 years

SUMMARY OF SIGNIFICANT ACCOUN_7

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Long-Lived Assets (Details) - USD ($)	12 Months Ended
	Oct. 31, 2020	Oct. 31, 2019
Long-Lived Assets
Impairment charge	$ 0	$ 0

SUMMARY OF SIGNIFICANT ACCOUN_8

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Reportable Operating Segments (Details)	12 Months Ended
	Oct. 31, 2020segment
Segment Reporting Information
Number of reportable segments	2
Ethanol production
Segment Reporting Information
Number of reportable segments	1

GOING CONCERN (Details)

GOING CONCERN (Details)	12 Months Ended
	Oct. 31, 2020
GOING CONCERN
Substantial doubt about Going Concern within one year	true

RISKS AND UNCERTAINTIES (Detail

RISKS AND UNCERTAINTIES (Details) gal in Millions	1 Months Ended	12 Months Ended
	Oct. 31, 2018	Oct. 31, 2020USD ($)Y	Oct. 31, 2019USD ($)	Dec. 19, 2019gal
RISKS AND UNCERTAINTIES
Impairment charge | $		$ 27,844,579	$ 27,844,579
Conventional ethanol
RISKS AND UNCERTAINTIES
Renewable volume requirements				15,000
Advanced biofuels
RISKS AND UNCERTAINTIES
Renewable volume requirements				5,090
Cellulosic ethanol
RISKS AND UNCERTAINTIES
Renewable volume requirements				590
Renewable fuels
RISKS AND UNCERTAINTIES
Renewable volume requirements				20,090
Statutory renewable volume requirement				30,000
Percentage mandatory renewable fuel volumes are reduced		20.00%
Number of consecutive years | Y		2
Threshold percentage	20.00%
Total revenues | Customer | Ethanol | Minimum
RISKS AND UNCERTAINTIES
Concentration percentage		75.00%
Total revenues | Customer | Ethanol | Maximum
RISKS AND UNCERTAINTIES
Concentration percentage		85.00%
Cost of goods sold | Product | Corn | Minimum
RISKS AND UNCERTAINTIES
Concentration percentage		70.00%
Cost of goods sold | Product | Corn | Maximum
RISKS AND UNCERTAINTIES
Concentration percentage		90.00%

REVENUE - Revenue (Details)

REVENUE - Revenue (Details) - USD ($)	12 Months Ended
	Oct. 31, 2020	Oct. 31, 2019
Revenue Recognition
Total Revenues	$ 76,029,841	$ 106,827,445
Payment terms	10 days
Ethanol production
Revenue Recognition
Total Revenues	$ 74,622,495	105,395,553
Natural gas pipeline
Revenue Recognition
Total Revenues	1,407,346	1,431,892
Ethanol
Revenue Recognition
Total Revenues	58,326,265	82,544,145
Ethanol | Ethanol production
Revenue Recognition
Total Revenues	58,326,265	82,544,145
Distillers' Grains
Revenue Recognition
Total Revenues	12,692,196	18,214,512
Distillers' Grains | Ethanol production
Revenue Recognition
Total Revenues	12,692,196	18,214,512
Corn Oil
Revenue Recognition
Total Revenues	2,925,808	3,513,679
Corn Oil | Ethanol production
Revenue Recognition
Total Revenues	2,925,808	3,513,679
Other
Revenue Recognition
Total Revenues	678,226	1,123,217
Other | Ethanol production
Revenue Recognition
Total Revenues	678,226	1,123,217
Natural Gas
Revenue Recognition
Total Revenues	$ 1,407,346	1,431,892
Payment terms	20 days
Natural Gas | Natural gas pipeline
Revenue Recognition
Total Revenues	$ 1,407,346	$ 1,431,892

FAIR VALUE MEASUREMENTS (Detail

FAIR VALUE MEASUREMENTS (Details) - USD ($)	Oct. 31, 2020	Oct. 31, 2019
Fair value measurements
Financial Assets	$ 15,150	$ 95,823
Financial Liabilities	173,928
Carrying Amount | Accounts payable
Fair value measurements
Financial Liabilities	553,248
Recurring basis | Fair Value. | Accounts payable
Fair value measurements
Financial Liabilities	553,248
Level 2 | Recurring basis | Fair Value. | Accounts payable
Fair value measurements
Financial Liabilities	553,248
Corn contracts | Carrying Amount
Fair value measurements
Financial Assets		20,060
Financial Liabilities	173,928
Corn contracts | Recurring basis | Fair Value.
Fair value measurements
Financial Assets		20,060
Financial Liabilities	173,928
Corn contracts | Level 1 | Recurring basis | Fair Value.
Fair value measurements
Financial Assets		20,060
Financial Liabilities	173,928
Ethanol contracts | Carrying Amount
Fair value measurements
Financial Assets	15,150	75,763
Ethanol contracts | Recurring basis | Fair Value.
Fair value measurements
Financial Assets	15,150	75,763
Ethanol contracts | Level 1 | Recurring basis | Fair Value.
Fair value measurements
Financial Assets	$ 15,150	$ 75,763

CONCENTRATIONS (Details)

CONCENTRATIONS (Details) - customer	12 Months Ended
	Oct. 31, 2020	Oct. 31, 2019
CONCENTRATIONS
Number of major customers	3	3
Total revenues | Customer
CONCENTRATIONS
Number of major customers	3	3
Total revenues | Customer | Eco-Energy, Inc. | Ethanol production
CONCENTRATIONS
Concentration percentage	76.70%	77.30%
Total revenues | Customer | Gavilon Ingredients, LLC | Distiller's grains
CONCENTRATIONS
Concentration percentage	15.90%	16.90%
Total revenues | Customer | RPMG, Inc. | Corn Oil
CONCENTRATIONS
Concentration percentage	3.80%	3.30%
Accounts receivable | Credit
CONCENTRATIONS
Number of major customers	3	3
Accounts receivable | Credit | Eco-Energy, Inc. | Ethanol production
CONCENTRATIONS
Concentration percentage	54.80%	80.00%
Accounts receivable | Credit | Gavilon Ingredients, LLC | Distiller's grains
CONCENTRATIONS
Concentration percentage	20.00%	15.30%
Accounts receivable | Credit | RPMG, Inc. | Corn Oil
CONCENTRATIONS
Concentration percentage	6.40%	2.80%

INVENTORY (Details)

INVENTORY (Details) - USD ($)	12 Months Ended
	Oct. 31, 2020	Oct. 31, 2019
Inventory
Raw materials	$ 2,440,997	$ 932,503
Work in process	713,037	732,243
Finished goods	2,677,095	3,157,429
Supplies	1,232,546	1,454,083
Totals	7,063,675	6,276,258
Ethanol
Inventory
Loss on inventory	$ 204,000	537,000
Corn
Inventory
Loss on inventory		$ 47,000

DERIVATIVE INSTRUMENTS (Details

DERIVATIVE INSTRUMENTS (Details)	12 Months Ended
	Oct. 31, 2020USD ($)bu	Oct. 31, 2019USD ($)bu
Derivative instruments
Financial Assets	$ 15,150	$ 95,823
Financial Liabilities	$ 173,928
Corn contracts
Derivative instruments
Notional volume | bu	2,095,000	5,398,000
Corn contracts | Commodity Option [Member]
Derivative instruments
Notional volume | bu	1,380,000	4,000,000
Corn contracts | Long/Purchase
Derivative instruments
Notional volume | bu	325,000	2,131,000
Corn contracts | Short/Sale
Derivative instruments
Notional volume | bu	1,770,000	3,267,000
Derivatives held by a broker
Derivative instruments
Restricted cash	$ 514,000	$ 52,000
Derivatives not designated as hedging instruments
Derivative instruments
Financial Assets	15,150	95,823
Financial Liabilities	$ 173,928
Derivatives not designated as hedging instruments | Commodity Contract | Maximum
Derivative instruments
Derivative term	24 months
Derivatives not designated as hedging instruments | Corn contracts
Derivative instruments
Financial Assets		20,060
Financial Liabilities	$ 173,928
Derivatives not designated as hedging instruments | Ethanol contracts
Derivative instruments
Financial Assets	$ 15,150	$ 75,763

DERIVATIVE INSTRUMENTS, Gains (

DERIVATIVE INSTRUMENTS, Gains (losses) (Details) - Derivatives not designated as hedging instruments - USD ($)	12 Months Ended
	Oct. 31, 2020	Oct. 31, 2019
Derivative Instruments
Total gain (loss)	$ (1,200,066)	$ 375,216
Corn contracts | Cost of goods sold
Derivative Instruments
Total gain (loss)	(1,069,393)	350,624
Ethanol contracts | Revenues.
Derivative Instruments
Total gain (loss)	$ (130,673)	$ 24,592

PROPERTY AND EQUIPMENT (Details

PROPERTY AND EQUIPMENT (Details) - USD ($)	1 Months Ended	12 Months Ended
	Jan. 31, 2021	Oct. 31, 2020	Oct. 31, 2019
Property and Equipment
Property and equipment, gross		$ 104,108,772	$ 99,315,502
Less accumulated depreciation		(63,921,039)	(59,907,307)
Net, property and equipment		40,187,733	39,408,195
Depreciation		5,228,000	5,246,000
Loss on disposal of assets		1,833,928	4,864
Forecast
Property and Equipment
Estimated cost	$ 5,200,000
Operating expenses
Property and Equipment
Loss on disposal of assets		1,800,000
Land and improvements
Property and Equipment
Property and equipment, gross		9,111,838	9,111,838
Plant building and equipment
Property and Equipment
Property and equipment, gross		88,879,395	88,708,522
Vehicles
Property and Equipment
Property and equipment, gross		700,959	700,959
Office buildings
Property and Equipment
Property and equipment, gross		735,864	735,864
Construction in progress
Property and Equipment
Property and equipment, gross		$ 4,680,716	$ 58,319

DEBT FACILITIES (Details)

DEBT FACILITIES (Details) - USD ($)	12 Months Ended
	Oct. 31, 2020	Oct. 31, 2019	Nov. 01, 2020	Jun. 30, 2020
DEBT FACILITIES
Long-term debt	$ 11,787,670	$ 634,180
Less amounts due on demand or within one year	11,492,059	333,977	$ 10,300,000
Net long term debt	295,611	300,203
Amended revolving term note payable to lending institution
DEBT FACILITIES
Long-term debt	7,891,426
Single advance term note payable to lending institution
DEBT FACILITIES
Long-term debt	3,000,000
Interest rate (as a percent)				3.80%
Assessments payable as part of water treatment agreement, with interest at 6.55%, due in October 2021
DEBT FACILITIES
Long-term debt	300,551	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
SBA Paycheck Protection Program Loan
DEBT FACILITIES
Long-term debt	$ 595,693

DEBT FACILITIES - Additional in

DEBT FACILITIES - Additional information (Details)

Jan. 01, 2021USD ($)

Apr. 18, 2020USD ($)

Feb. 28, 2021USD ($)

Dec. 31, 2020USD ($)

Jun. 30, 2020USD ($)

Apr. 30, 2020USD ($)

Jan. 31, 2020USD ($)

Oct. 31, 2020USD ($)

Jan. 31, 2021USD ($)

Nov. 01, 2020USD ($)

Oct. 31, 2019USD ($)

Mar. 29, 2018USD ($)

Debt financing

Current maturities of long-term debt

$ 11,492,059

$ 10,300,000

$ 333,977

Long-term debt

595,693

CoBank | 2020 Credit Facility

Debt financing

Annual fee

$ 2,500

Amended revolving term note payable to lending institution | 2020 Credit Facility

Debt financing

Maximum borrowing capacity

$ 13,000,000

$ 8,000,000

Working capital covenant

$ 10,000,000

$ 8,000,000

$ 10,000,000

Spread above variable interest rate (as a percent)

0.00%

Interest rate at end of period (as a percent)

3.51%

Unused commitment fee per annum on the unused portion of debt (as a percent)

0.50%

Amended revolving term note payable to lending institution | One-Month LIBOR | 2020 Credit Facility

Debt financing

Spread above variable interest rate (as a percent)

3.35%

SBA Paycheck Protection Program Loan

Debt financing

Long-term debt

$ 595,693

Single advance term note payable to lending institution

Debt financing

Debt Instrument, Face Amount

$ 3,000,000

Interest rate (as a percent)

3.80%

Number of Installments

10

Negotiable Promissory Note | Granite Falls Energy LLC Excluding Heron Lake Bioenergy LLC

Debt financing

Maximum borrowing capacity

$ 5,000,000

Spread above variable interest rate (as a percent)

1.00%

Debt Instrument, Face Amount

$ 5,000,000

Negotiable Promissory Note | Granite Falls Energy LLC Excluding Heron Lake Bioenergy LLC | Subsequent Event

Debt financing

Maximum borrowing capacity

$ 5,000,000

Spread above variable interest rate (as a percent)

1.00%

Debt Instrument, Face Amount

$ 5,000,000

Negotiable Promissory Note | 2020 Credit Facility | Subsequent Event

Debt financing

Maximum borrowing capacity

$ 5,000,000

Spread above variable interest rate (as a percent)

0.00%

Unused commitment fee per annum on the unused portion of debt (as a percent)

0.50%

Negotiable Promissory Note | One-Month LIBOR | Granite Falls Energy LLC Excluding Heron Lake Bioenergy LLC

Debt financing

Spread above variable interest rate (as a percent)

3.35%

Negotiable Promissory Note | One-Month LIBOR | Granite Falls Energy LLC Excluding Heron Lake Bioenergy LLC | Subsequent Event

Debt financing

Spread above variable interest rate (as a percent)

3.35%

Negotiable Promissory Note | One-Month LIBOR | 2020 Credit Facility | Subsequent Event

Debt financing

Spread above variable interest rate (as a percent)

3.35%

DEBT FACILITIES - Estimated ann

DEBT FACILITIES - Estimated annual maturities (Details) - USD ($)	Oct. 31, 2020	Oct. 31, 2019
Estimated maturities of long-term debt
2021	$ 11,492,059
2022	295,611
Long-term debt	$ 11,787,670	$ 634,180

MEMBERS' EQUITY (Details)

MEMBERS' EQUITY (Details)	12 Months Ended
	Oct. 31, 2020USD ($)Vote / sharesshares	Oct. 31, 2019shares
Members' Equity
Common Unit, Issued	77,932,107	77,932,107
Minimum number of units held to be member	2,500
Number of votes per unit | Vote / shares	1
Remaining non-controlling interest | $	$ 2,225,000
Maximum
Members' Equity
Common Unit, Authorized	80,000,000
Class A units
Members' Equity
Common Unit, Authorized	65,000,000
Class B units
Members' Equity
Common Unit, Authorized	15,000,000

LEASES (Details)

LEASES (Details) - USD ($)	12 Months Ended
	Oct. 31, 2020	Oct. 31, 2019	Nov. 01, 2019
Leases
Right of use assets	$ 9,291,249
Lease liabilities	$ 9,291,249
Lease, Practical Expedients, Package [true false]	true
Weighted average discount rate	4.87%
Weighted average remaining lease term	4 years
Cost of goods sold
Leases
Operating lease costs	$ 2,331,000	$ 2,374,000
Minimum
Leases
Remaining term	1 year
Maximum
Leases
Remaining term	7 years
ASU 2016-02
Leases
Right of use assets			$ 10,900,000
Lease liabilities			$ 10,900,000

LEASES - Maturities of operatin

LEASES - Maturities of operating lease liabilities (Details)	Oct. 31, 2020USD ($)
Maturities of operating lease liabilities
2021	$ 1,767,000
2022	1,767,000
2023	1,767,000
2024	1,669,500
2025	1,650,000
Thereafter	2,162,500
Totals	10,783,000
Less: Amount representing interest	1,491,751
Lease liabilities	$ 9,291,249

INCOME TAXES (Details)

INCOME TAXES (Details) - USD ($)	12 Months Ended
	Oct. 31, 2020	Oct. 31, 2019
INCOME TAXES
Consolidated financial statement basis of assets	$ 63,080,181	$ 56,595,915
Plus: Organization and start-up costs capitalized for tax purposes, net	355,152	502,566
Less: Unrealized gains on commodity derivative instruments	(15,150)	(95,823)
Less: Accumulated tax depreciation and amortization greater than financial statement basis	(56,055,250)	(56,386,730)
Book to tax operating lease right of use assets	(9,291,249)
Plus: Impairment charge	27,844,579	27,844,579
Income tax basis of assets	25,918,263	28,460,507
Financial Statement basis of liabilities	29,955,313	6,995,064
Accrued rail car maintenance	(596,924)	(551,000)
Book to tax operating lease liabilities	(9,291,249)
Other accruals	(176,828)	(183,891)
Income tax basis of liabilities	$ 19,890,312	$ 6,260,173

EMPLOYEE BENEFIT PLANS (Details

EMPLOYEE BENEFIT PLANS (Details) - USD ($)	12 Months Ended
	Oct. 31, 2020	Oct. 31, 2019
Defined Contribution Plan
Employer match as a percentage of employee deferral	50.00%
Company contributions to the plan	$ 89,000	$ 92,000
Maximum
Defined Contribution Plan
Maximum contribution as a percentage of employee salary	4.00%

RELATED PARTY TRANSACTIONS (Det

RELATED PARTY TRANSACTIONS (Details)	1 Months Ended	12 Months Ended
	Dec. 31, 2020USD ($)	Oct. 31, 2020USD ($)item	Oct. 31, 2019USD ($)	Jan. 31, 2021USD ($)
Board of Governors | Corn
RELATED PARTY TRANSACTIONS
Amount purchased from related party		$ 12,545,000	$ 11,478,000
Accounts payable, related parties		$ 171,000	470,000
Granite Falls Energy LLC Excluding Heron Lake Bioenergy LLC
RELATED PARTY TRANSACTIONS
Percentage of costs for three management positions incurred by GFE paid by the Company		50.00%
Number of management positions of GFE partially paid for by the Company | item		3
Renewal term		1 year
Period of written notice for termination prior to renewal of agreement		90 days
Amount of related party transaction		$ 510,000	438,000
Accounts payable, related parties		$ 63,000	$ 39,000
Negotiable Promissory Note | Granite Falls Energy LLC Excluding Heron Lake Bioenergy LLC
RELATED PARTY TRANSACTIONS
Maximum borrowing capacity	$ 5,000,000
Spread above variable interest rate (as a percent)	1.00%
Debt Instrument, Face Amount				$ 5,000,000
Negotiable Promissory Note | One-Month LIBOR | Granite Falls Energy LLC Excluding Heron Lake Bioenergy LLC
RELATED PARTY TRANSACTIONS
Spread above variable interest rate (as a percent)	3.35%
Agrinatural, LLC
RELATED PARTY TRANSACTIONS
Period of written notice for termination prior to renewal of agreement		30 days
Amount paid excluding fees and third party services		$ 9,000
Amount of related party transaction		$ 81,000

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Details)	Oct. 31, 2019USD ($)	Jan. 01, 2014item	Nov. 01, 2013	Sep. 30, 2019USD ($)gal	May 31, 2006	Oct. 31, 2020USD ($)itemmibu	Oct. 31, 2019USD ($)	Oct. 31, 2007USD ($)	Oct. 31, 2006USD ($)
COMMITMENTS AND CONTINGENCIES
Impairment charge						$ 27,844,579	$ 27,844,579
Commodity Contract
COMMITMENTS AND CONTINGENCIES
Impairment charge						$ 47,000	0
Corn Forward Contracts | Long/Purchase
COMMITMENTS AND CONTINGENCIES
Notional volume | bu						2,462,000
Ethanol Forward Contracts | Short/Sale
COMMITMENTS AND CONTINGENCIES
Notional value						$ 12,350,000
Anticipated sales (as a percent)						88.00%
Distillers Grains Forward Contracts | Short/Sale
COMMITMENTS AND CONTINGENCIES
Notional value						$ 5,356,000
Anticipated sales (as a percent)						45.00%
Corn Oil Forward Contract | Short/Sale
COMMITMENTS AND CONTINGENCIES
Notional value						$ 633,000
Anticipated sales (as a percent)						80.00%
Water Supply Development and Distribution Agreement
COMMITMENTS AND CONTINGENCIES
Term of agreement				10 years
Initial volume per minute of capacity that is available from the well for which the entity has exclusive rights (in gallons) | gal				600
City's water well bond payments				$ 735,000
Administrative fee to be paid as water usage fees (as a percent)				5.00%
Administrative fee to be paid as water usage fees				$ 594,000
Percentage of profit to be paid as water usage fees				10.00%
Assessment				$ 367,000
Operating and administrative/maintenance expenses paid				12,000
Flow Charges Per Thousand Gallons Of Water				0.60
Monthly base fee paid				1,500
Operating and maintenance expenses capped				$ 300,000
Percentage in excess of operating and maintenance cost capped				55.00%
Initial term				2 years
Average term				2 years
Water Treatment Agreement
COMMITMENTS AND CONTINGENCIES
Term of agreement					30 years
Assessment								$ 500,000	$ 3,550,000
Operating and administrative/maintenance expenses paid						$ 77,000	52,000
Ethanol Marketing Agreement
COMMITMENTS AND CONTINGENCIES
Percentage of ethanol and distillers grains products produced by the entity to be purchased, marketed and resold by Gavilon						100.00%
Number of terms agreement automatically renews | item		3
Term of renewal periods	1 year	3 years
Fees and commissions						$ 265,000	635,000
Ethanol Marketing Agreement | Minimum
COMMITMENTS AND CONTINGENCIES
Written notice for termination of agreement	90 days	3 months
Distillers Grains Marketing Agreement
COMMITMENTS AND CONTINGENCIES
Term of agreement			6 months
Fees and commissions						187,000	287,000
Distillers Grains Marketing Agreement | Minimum
COMMITMENTS AND CONTINGENCIES
Written notice for termination of agreement			60 days
Corn Oil Marketing Agreement
COMMITMENTS AND CONTINGENCIES
Term of agreement			1 year
Fees and commissions						$ 61,000	71,000
Corn Oil Marketing Agreement | Minimum
COMMITMENTS AND CONTINGENCIES
Written notice for termination of agreement			90 days
Contract For Natural Gas Pipeline To Plant
COMMITMENTS AND CONTINGENCIES
Distance of the natural gas pipeline from the ethanol plant | mi						16
Rail Car Rehabilitation Agreement
COMMITMENTS AND CONTINGENCIES
Number of hopper rail cars leased | item						50
Estimated total costs to rehabilitate the cars						$ 597,000	551,000
Estimated long-term liability of rehabilitation costs	$ 551,000					$ 85,000	$ 551,000

BUSINESS SEGMENTS (Details)

BUSINESS SEGMENTS (Details)	12 Months Ended
	Oct. 31, 2020USD ($)segment	Oct. 31, 2019USD ($)
Segment Reporting Information
Number of operating segments | segment	2
Total Revenues	$ 76,029,841	$ 106,827,445
Operating Loss	(14,369,769)	(5,382,545)
Assets	63,080,181	56,595,915
Ethanol production
Segment Reporting Information
Total Revenues	74,622,495	105,395,553
Natural gas pipeline
Segment Reporting Information
Total Revenues	1,407,346	1,431,892
Operating Segments | Ethanol production
Segment Reporting Information
Total Revenues	74,622,495	105,395,553
Operating Loss	(15,330,752)	(6,594,653)
Assets	49,613,394	44,097,379
Operating Segments | Natural gas pipeline
Segment Reporting Information
Total Revenues	2,924,684	3,182,958
Operating Loss	1,459,545	1,878,935
Assets	13,466,787	12,498,536
Intersegment Eliminations
Segment Reporting Information
Total Revenues	(1,517,338)	(1,751,066)
Operating Loss	$ (498,562)	$ (666,827)