Heron Lake BioEnergy (HLBYL) 10-Q 14 Sep 21 2021 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Jul. 31, 2021	Sep. 14, 2021
Document Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jul. 31, 2021
Document Transition Report	false
Entity File Number	000-51825
Entity Registrant Name	HERON LAKE BIOENERGY, LLC
Entity Incorporation, State or Country Code	MN
Entity Tax Identification Number	41-2002393
Entity Address, Address Line One	Minnesota
Entity Address, City or Town	Heron Lake
Entity Address, State or Province	MN
Entity Address, Postal Zip Code	56137-1375
City Area Code	(507)
Local Phone Number	793-0077
Title of 12(b) Security	None
Trading Symbol	NA
Security Exchange Name	NONE
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	2021
Document Fiscal Period Focus (Q1,Q2,Q3,FY)	Q3
Amendment Flag	false
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

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($)	Jul. 31, 2021	Oct. 31, 2020
Current Assets
Cash	$ 3,337,000	$ 3,276,301
Restricted cash	336,516	514,050
Accounts receivable	3,414,059	1,616,489
Inventory	9,355,763	7,063,675
Commodity derivative instruments		15,150
Prepaid expenses and other current assets	937,183	782,280
Total current assets	17,380,521	13,267,945
Property and Equipment, net	36,474,903	40,187,733
Operating lease right of use asset, net	8,289,206	9,291,249
Other Assets	333,254	333,254
Total Assets	62,477,884	63,080,181
Current Liabilities
Current maturities of long-term debt	852,699	11,492,059
Checks drawn in excess of bank balance	816,600	692,984
Accounts payable	7,352,061	6,916,045
Commodity derivative instruments	28,831	173,928
Accrued expenses	365,631	496,513
Operating lease, current liabilities	1,394,161	1,344,258
Total current liabilities	10,809,983	21,115,787
Long-Term Debt, less current portion	7,279,205	295,611
Operating leases, long-term liabilities	6,895,045	7,946,991
Other Long-Term Liabilities	631,367	596,924
Commitments and Contingencies
Members' Equity
Members' equity attributable to Heron Lake BioEnergy, LLC consists of 77,932,107 units issued and outstanding at both July 31, 2021 and October 31, 2020.	36,862,284	33,124,868
Total Liabilities and Members' Equity	$ 62,477,884	$ 63,080,181

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - shares	Jul. 31, 2021	Oct. 31, 2020
Condensed Consolidated Balance Sheets
Members' Equity, units issued	77,932,107	77,932,107
Members' Equity, units outstanding	77,932,107	77,932,107

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations - USD ($)	3 Months Ended		9 Months Ended
	Jul. 31, 2021	Jul. 31, 2020	Jul. 31, 2021	Jul. 31, 2020
Condensed Consolidated Statements of Operations
Revenues	$ 49,980,729	$ 14,165,041	$ 111,454,900	$ 56,450,290
Cost of Goods Sold	44,095,464	17,314,863	105,101,281	66,494,154
Gross Income (Loss)	5,885,265	(3,149,822)	6,353,619	(10,043,864)
Operating Expenses	(936,418)	(769,859)	(3,057,147)	(2,644,253)
Operating Income (Loss)	4,948,847	(3,919,681)	3,296,472	(12,688,117)
Other Income (Expense)
Interest income	1,153	740	3,148	13,147
Interest expense	(171,649)	(74,737)	(404,551)	(116,342)
Other income, net	63,392	33,105	842,347	239,943
Total other income (expense), net	(107,104)	(40,892)	440,944	136,748
Net Income (Loss)	4,841,743	(3,960,573)	3,737,416	(12,551,369)
Less: Net Income Attributable to Non-controlling Interest				(67,827)
Net Income (Loss) Attributable to Heron Lake BioEnergy, LLC	$ 4,841,743	$ (3,960,573)	$ 3,737,416	$ (12,619,196)
Weighted Average Units Outstanding-Basic and diluted (Class A and B)	77,932,107	77,932,107	77,932,107	77,932,107
Net Income (Loss) Per Unit Attributable to Heron Lake BioEnergy, LLC- Basic and Diluted (Class A and B)	$ 0.06	$ (0.05)	$ 0.05	$ (0.16)

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Change in Members' Equity - USD ($)	Class A units	Class B units	Members' Equity attributable to Heron Lake BioEnergy LLC	Non-controlling Interest	Total
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
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 income (loss) attributable to Heron Lake BioEnergy, LLC			(2,416,374)		(2,416,374)
Balance at Jan. 31, 2020			45,027,304		45,027,304
Balance (in units) at Jan. 31, 2020	62,932,107	15,000,000
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
Increase (Decrease) in Stockholders' Equity
Net income (loss) attributable to Heron Lake BioEnergy, LLC					(12,619,196)
Balance at Jul. 31, 2020			34,824,482		34,824,482
Balance (in units) at Jul. 31, 2020	62,932,107	15,000,000
Balance at Jan. 31, 2020			45,027,304		45,027,304
Balance (in units) at Jan. 31, 2020	62,932,107	15,000,000
Increase (Decrease) in Stockholders' Equity
Net income (loss) attributable to Heron Lake BioEnergy, LLC			(6,242,249)		(6,242,249)
Balance at Apr. 30, 2020			38,785,055		38,785,055
Balance (in units) at Apr. 30, 2020	62,932,107	15,000,000
Increase (Decrease) in Stockholders' Equity
Net income (loss) attributable to Heron Lake BioEnergy, LLC			(3,960,573)		(3,960,573)
Balance at Jul. 31, 2020			34,824,482		34,824,482
Balance (in units) at Jul. 31, 2020	62,932,107	15,000,000
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
Increase (Decrease) in Stockholders' Equity
Net income (loss) attributable to Heron Lake BioEnergy, LLC			(3,980,019)		$ (3,980,019)
Balance at Jan. 31, 2021			29,144,849		29,144,849
Balance (in units) at Jan. 31, 2021	62,932,107	15,000,000
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
Increase (Decrease) in Stockholders' Equity
Net income (loss) attributable to Heron Lake BioEnergy, LLC					$ 3,737,416
Balance at Jul. 31, 2021			36,862,284		$ 36,862,284
Balance (in units) at Jul. 31, 2021	62,932,107	15,000,000			77,932,107
Balance at Jan. 31, 2021			29,144,849		$ 29,144,849
Balance (in units) at Jan. 31, 2021	62,932,107	15,000,000
Increase (Decrease) in Stockholders' Equity
Net income (loss) attributable to Heron Lake BioEnergy, LLC			2,875,692		2,875,692
Balance at Apr. 30, 2021			32,020,541		32,020,541
Balance (in units) at Apr. 30, 2021	62,932,107	15,000,000
Increase (Decrease) in Stockholders' Equity
Net income (loss) attributable to Heron Lake BioEnergy, LLC			4,841,743		4,841,743
Balance at Jul. 31, 2021			$ 36,862,284		$ 36,862,284
Balance (in units) at Jul. 31, 2021	62,932,107	15,000,000			77,932,107

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Cash Flows - USD ($)	9 Months Ended
	Jul. 31, 2021	Jul. 31, 2020
Cash Flow From Operating Activities
Net Income (Loss)	$ 3,737,416	$ (12,551,369)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization	4,220,030	3,936,813
Paycheck Protection Program loan forgiveness income	(595,693)
(Gain) loss on disposal of assets	21,728	(2,000)
Change in fair value of commodity derivative instruments	2,978,588	999,167
Change in operating assets and liabilities:
Accounts receivable	(1,797,570)	4,618,187
Inventory	(2,292,088)	2,408,839
Commodity derivative instruments	(3,108,535)	(900,010)
Prepaid expenses and other current assets	(154,903)	(177,693)
Accounts payable	2,576,641	(3,428,588)
Accrued expenses	(130,882)	682,346
Accrued railcar rehabilitation costs	34,443	34,443
Net cash provided by (used in) operating activities	5,489,175	(4,379,865)
Cash Flows from Investing Activities
Capital expenditures	(2,669,553)	(2,252,359)
Net cash used in investing activities	(2,669,553)	(2,252,359)
Cash Flows from Financing Activities
Checks drawn in excess of bank balance	123,616	685,724
Proceeds from Paycheck Protection Program loans	595,693	595,693
Proceeds from long-term debt	2,650,719	22,070,984
Payments on long-term debt	(11,306,485)	(16,966,880)
Proceeds from related party debt	5,000,000
Acquisition of non-controlling interest		(2,000,000)
Net cash provided by (used in) financing activities	(2,936,457)	4,385,521
Net decrease in cash and restricted cash	(116,835)	(2,246,703)
Cash and Restricted Cash - Beginning of period	3,790,351	4,593,811
Cash and Restricted Cash - End of period	3,673,516	2,347,108
Supplemental Disclosure of Cash Flow Information
Interest expense	$ 420,839	116,342
Supplemental Disclosure of Non-Cash Investing and Financing Activities
Capital expenditures included in accounts payable		$ 1,609

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Cash Flows (Parenthetical) - USD ($)	Jul. 31, 2021	Oct. 31, 2020	Jul. 31, 2020	Oct. 31, 2019
Reconciliation of Cash and Restricted Cash
Cash - Balance Sheet	$ 3,337,000	$ 3,276,301	$ 2,119,603
Restricted Cash - Balance Sheet	336,516	514,050	227,505
Cash and Restricted Cash	$ 3,673,516	$ 3,790,351	$ 2,347,108	$ 4,593,811

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	9 Months Ended
	Jul. 31, 2021
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 is a natural gas pipeline company that was formed to construct, own, and operate the natural gas pipeline that provides natural gas to the Company’s ethanol production facility and other customers through a connection with the 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. ​ Basis of Presentation and Principles of Consolidation ​ ​ The condensed consolidated unaudited financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and disclosures normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted as permitted by such rules and regulations. These condensed consolidated unaudited financial statements and related notes should be read in conjunction with the financial statements and notes thereto included in the Company’s audited consolidated financial statements for the year ended October 31, 2020, contained in the Company’s annual report on Form 10-K. ​ In the opinion of management, the condensed consolidated unaudited financial statements reflect all adjustments consisting of normal recurring accruals that we consider necessary to present fairly the Company’s results of operations, financial position, and cash flows. The results reported in these condensed consolidated unaudited financial statements should not be regarded as necessarily indicative of results that may be expected for any other fiscal period or for the fiscal year. ​ Accounting Estimates ​ Management uses estimates and assumptions in preparing these condensed consolidated unaudited financial statements in accordance with generally accepted accounting principles. Those estimates and assumptions affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities, and the reported revenues and expenses. The Company uses estimates and assumptions in accounting for significant matters including, among others, the economic lives of property and equipment, the assumptions used in the analysis of impairment of long-lived assets, valuation of commodity derivative instruments, inventory, inventory purchase and sales commitments, evaluation of railcar rehabilitation costs and evaluation of going concern. 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. ​ 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. ​ Inventory ​ Inventory is stated at the lower of cost or net realizable value. Cost for all inventories is determined using the first in first out method. Net realizable value is the estimated selling prices in the ordinary course of business less reasonably predictable costs of completion, disposal, and transportation. Inventory consists of raw materials, work in process, finished goods, and supplies. Corn is the primary raw material along with other raw materials. Finished goods consist of ethanol, distillers’ grains, and corn oil. ​ Derivative Instruments ​ From time to time the Company enters into derivative transactions to hedge its exposures to commodity price fluctuations. The Company is required to record these derivatives on the balance sheets at fair value. ​ In order for a derivative to qualify as a hedge, specific criteria must be met and appropriate documentation maintained. Gains and losses from derivatives that do not qualify as hedges, or are undesignated, must be recognized immediately in earnings. If the derivative does qualify as a hedge, depending on the nature of the hedge, changes in the fair value of the derivative will be either offset against the change in fair value of the hedged assets, liabilities, or firm commitments through earnings or recognized in other comprehensive income until the hedged item is recognized in earnings. Changes in the fair value of undesignated derivatives are recorded in earnings. ​ Additionally, the Company is required to evaluate its contracts to determine whether the contracts are derivatives. Certain contracts that literally meet the definition of a derivative may be exempted as “normal purchases or normal sales.” Normal purchases and normal sales are contracts that provide for the purchase or sale of something other than a financial instrument or derivative instrument that will be delivered in quantities expected to be used or sold over a reasonable period in the normal course of business. Contracts that meet the requirements of normal purchases or sales are documented as normal and exempted from accounting and reporting requirements, and therefore, are not marked to market in our condensed consolidated unaudited financial statements. ​ In order to reduce the risks caused by market fluctuations, the Company occasionally hedges its anticipated corn, natural gas, and denaturant purchases and ethanol sales by entering into options and futures contracts. These contracts are used with the intention to fix the purchase price of anticipated requirements for corn in the Company's ethanol production activities and the related sales price of ethanol. The fair value of these contracts is based on quoted prices in active exchange-traded or over-the-counter market conditions. Although the Company believes its commodity derivative positions are economic hedges, none have been formally designated as a hedge for accounting purposes and derivative positions are recorded on the balance sheet at their fair market value, with changes in fair value recognized in current period earnings or losses. The Company does not enter into financial instruments for trading or speculative purposes. ​ The Company has adopted authoritative guidance related to “Derivatives and Hedging,” and has included the required enhanced quantitative and qualitative disclosure about objectives and strategies for using derivatives, quantitative disclosures about fair value amounts of gains and losses from derivative instruments, and disclosures about credit-risk-related contingent features in derivative agreements. See further discussion in Note 5. ​ 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. ​

RISKS AND UNCERTAINTIES

RISKS AND UNCERTAINTIES	9 Months Ended
	Jul. 31, 2021
RISKS AND UNCERTAINTIES
RISKS AND UNCERTAINTIES	2. RISKS AND UNCERTAINTIES ​ The Company has certain risks and uncertainties that it experiences during volatile market conditions. These volatilities can have a severe impact on operations. The Company’s revenues are derived from the sale and distribution of ethanol and distillers’ grains to customers primarily located in the U.S. Corn for the production process is supplied to the plant primarily from local agricultural producers. Ethanol sales average 70% to 90% of total revenues and corn costs average 70% to 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 Company's largest cost of production is corn. The cost of corn is generally impacted by factors such as supply and demand, the weather, government policies and programs, and a risk management program used to protect against the price volatility of these commodities. Market fluctuations in the price of and demand for these commodities may have further significant adverse effects 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 2020 and into 2021 as a result of industry-wide record low ethanol prices due to reduced demand and high industry inventory levels, which were compounded by the impact of the novel coronavirus ("COVID-19"). These factors resulted in prolonged negative operating margins, significantly lower cash flow from operations and substantial net losses. As a result, as of the three months ended January 30, 2021 and the fiscal year ended October 31, 2020, the Company was not in compliance with its working capital and net worth covenant requirements related to its Revolving Term Note, for which waivers were obtained. The Company was in compliance with its working capital and net worth covenant requirements as of July 31, 2021 and currently forecasts future compliance during the next twelve months. Fuel prices generally, and ethanol prices specifically, have rebounded since the spring of 2020 and remained steady during the three and nine months ended July 31, 2021. As a result, the Company has experienced positive operating and net income in the three and nine months ended July 31, 2021. ​ The Company believes its operating cash flows, cash on hand, and available debt from its lender will provide sufficient liquidity to meet its anticipated working capital, debt service and other liquidity needs through the next twelve months. If market conditions worsen affecting our ability to profitably operate the plant or if we are unable to transport ethanol, we may be forced to further idle ethanol production altogether. ​ The Company is moving forward with a plan to engage in a merger with Granite Falls Energy, LLC (“GFE”), the Company’s majority owner. Pursuant to a Merger Agreement, GFE would acquire the minority ownership interest of the Company for $14 million, or approximately $0.36405 per unit, and the Company would become a wholly owned subsidiary of GFE. The Company believes the merger would provide the Company with additional financial resources to assist the Company’s continued operations. The Merger is subject to approval by the minority interest unitholders of HLBE. A special meeting where HLBE members will vote on the proposed merger is scheduled for 1 p.m. September 23, 2021, at the Heron Lake Community Center, 312 10th St., Heron Lake, Minnesota 56137. If approved by the minority unitholders, the merger is expected to close following the special meeting. Additional information regarding the proposed merger is available in the section captioned Part 1 - Item 2

REVENUE

REVENUE	9 Months Ended
	Jul. 31, 2021
REVENUE
REVENUE	3. REVENUE ​ Revenue by Source ​ All revenues from contracts with customers under ASC Topic 606 are recognized at a point in time. The following table disaggregates revenue by major source for the three and nine months ended July 31, 2021 and 2020: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended July 31, 2021 ​ ​ (unaudited) ​ Ethanol Production Natural Gas Pipeline Total Ethanol ​ $ 39,647,617 ​ $ — ​ $ 39,647,617 Distillers’ Grains ​ ​ 7,221,342 ​ ​ — ​ ​ 7,221,342 Corn Oil ​ ​ 2,581,949 ​ ​ — ​ ​ 2,581,949 Other ​ ​ 410,734 ​ ​ — ​ ​ 410,734 Natural Gas ​ ​ — ​ ​ 119,087 ​ ​ 119,087 Total Revenues ​ $ 49,861,642 ​ $ 119,087 ​ $ 49,980,729 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended July 31, 2020 ​ ​ (unaudited) ​ Ethanol Production Natural Gas Pipeline Total Ethanol ​ $ 11,920,049 ​ $ — ​ $ 11,920,049 Distillers’ Grains ​ ​ 1,645,859 ​ ​ — ​ ​ 1,645,859 Corn Oil ​ ​ 401,623 ​ ​ — ​ ​ 401,623 Other ​ ​ 71,519 ​ ​ — ​ ​ 71,519 Natural Gas ​ ​ — ​ ​ 125,991 ​ ​ 125,991 Total Revenues ​ $ 14,039,050 ​ $ 125,991 ​ $ 14,165,041 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Nine Months Ended July 31, 2021 ​ ​ (unaudited) ​ ​ ​ Ethanol Production ​ ​ Natural Gas Pipeline ​ ​ Total Ethanol ​ $ 87,688,837 ​ $ — ​ $ 87,688,837 Distillers’ Grains ​ ​ 16,147,687 ​ ​ — ​ ​ 16,147,687 Corn Oil ​ ​ 5,828,429 ​ ​ — ​ ​ 5,828,429 Other ​ ​ 939,993 ​ ​ — ​ ​ 939,993 Natural Gas ​ ​ — ​ ​ 849,954 ​ ​ 849,954 Total Revenues ​ $ 110,604,946 ​ $ 849,954 ​ $ 111,454,900 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Nine Months Ended July 31, 2020 ​ ​ (unaudited) ​ ​ ​ Ethanol Production ​ ​ Natural Gas Pipeline ​ ​ Total Ethanol ​ $ 43,306,209 ​ $ — ​ $ 43,306,209 Distillers’ Grains ​ ​ 9,481,770 ​ ​ — ​ ​ 9,481,770 Corn Oil ​ ​ 2,051,049 ​ ​ — ​ ​ 2,051,049 Other ​ ​ 559,242 ​ ​ — ​ ​ 559,242 Natural Gas ​ ​ — ​ ​ 1,052,020 ​ ​ 1,052,020 Total Revenues ​ $ 55,398,270 ​ $ 1,052,020 ​ $ 56,450,290 ​ 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.

INVENTORY

INVENTORY	9 Months Ended
	Jul. 31, 2021
INVENTORY
INVENTORY	4. INVENTORY ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ July 31, 2021 ​ October 31, 2020 ​ ​ (unaudited) ​ ​ Raw materials ​ $ 3,577,292 ​ $ 2,440,997 ​ Work in process ​ 1,091,479 ​ 713,037 ​ Finished goods ​ 3,387,051 ​ 2,677,095 ​ Supplies ​ 1,299,941 ​ 1,232,546 ​ Totals ​ $ 9,355,763 ​ $ 7,063,675 ​ ​ The Company performs a lower of 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 $121,000 and $155,000 for the nine months ended July 31, 2021 and 2020, respectively. Based on the lower of cost or net realizable value analysis, the Company recorded a loss on corn inventories, as a component of cost of goods sold, of approximately $0 and $184,000 for the nine months ended July 31, 2021 and 2020, respectively.

DERIVATIVE INSTRUMENTS

DERIVATIVE INSTRUMENTS	9 Months Ended
	Jul. 31, 2021
DERIVATIVE INSTRUMENTS
DERIVATIVE INSTRUMENTS	5. DERIVATIVE INSTRUMENTS ​ As of July 31, 2021, the total notional amount of the Company’s outstanding corn derivative instruments was approximately 655,000 bushels, comprised of short corn futures positions that were entered into to hedge forecasted corn purchases through July 2022. Additionally, there are corn options positions of 575,000 bushels through December 2021. There may be offsetting positions that are not shown on a net basis that could lower the notional amount of positions outstanding. ​ As of July 31, 2021, the Company had approximately $337,000 of cash collateral (restricted cash) related to derivatives held by a broker. ​ The following table provides detail regarding the Company’s derivative instruments at July 31, 2021, none of which are designated as hedging instruments: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Consolidated Balance Sheet Location Assets Liabilities Corn contracts ​ Commodity derivative instruments ​ $ — ​ $ 28,831 ​ Totals ​ ​ ​ $ — ​ $ 28,831 ​ ​ 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 ​ ​ The following tables provide detail regarding the gains (losses) from Company’s derivative financial instruments in its condensed consolidated unaudited statements of operations, none of which are designated as hedging instruments: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Consolidated Statement of Three Months Ended July 31, ​ Nine Months Ended July 31, ​ Operations Location 2021 2020 2021 2020 Corn contracts Cost of goods sold ​ $ (269,410) ​ $ (287,301) ​ $ (3,088,829) ​ $ (803,632) ​ Ethanol contracts ​ Revenues ​ ​ — ​ ​ (31,945) ​ ​ 110,241 ​ ​ (195,535) ​ Total loss ​ ​ ​ $ (269,410) ​ $ (319,246) ​ $ (2,978,588) ​ $ (999,167) ​ ​

FAIR VALUE

FAIR VALUE	9 Months Ended
	Jul. 31, 2021
FAIR VALUE
FAIR VALUE	6. FAIR VALUE ​ The following table sets forth, by level, the Company assets that were accounted for at fair value on a recurring basis at July 31, 2021: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fair Value Measurement Using ​ ​ Carrying Amount in ​ ​ ​ Quoted Prices in ​ Significant Other ​ Significant ​ Consolidated ​ ​ Active Markets Observable Inputs Unobservable Inputs ​ Balance Sheet ​ Fair Value (Level 1) (Level 2) (Level 3) Financial Liabilities: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Commodity Derivative instruments - Corn ​ $ 28,831 ​ $ 28,831 ​ $ 28,831 ​ $ — ​ $ — ​ Accounts Payable (1) ​ $ 99,349 ​ $ 99,349 ​ $ — ​ $ 99,349 ​ $ — ​ ​ The following table sets forth, by level, the Company assets and liabilities that were accounted for at fair value on a recurring basis at October 31, 2020: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 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 - 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 ​ $ — ​ (1) ​ We determine the fair value of commodity derivative instruments by obtaining fair value measurements from an independent pricing service. The fair value measurements consider observable data that may include dealer quotes and live trading levels from the Chicago Board of Trade market and New York Mercantile Exchange. We determine the fair value of Level 2 accounts payable based on nearby futures values, plus or minus nearby basis.

DEBT FACILITIES

DEBT FACILITIES	9 Months Ended
	Jul. 31, 2021
DEBT FACILITIES
DEBT FACILITIES	7. DEBT FACILITIES ​ Long-term debt consists of the following: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ July 31, 2021 October 31, 2020 ​ ​ ​ (unaudited) ​ ​ ​ 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. ​ ​ 2,400,000 ​ ​ 3,000,000 ​ Short term revolving note, see notes below ​ ​ 6,000 ​ ​ — ​ 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 current assets that are held on deposit to be applied with the final payments of the assessment. ​ 130,211 ​ ​ 300,551 ​ SBA Paycheck Protection Program loan, see terms below. ​ 595,693 ​ ​ 595,693 ​ Granite Falls Energy note, see terms below. ​ 5,000,000 ​ ​ — ​ Totals ​ 8,131,904 ​ 11,787,670 ​ Less amounts due within one year ​ 852,699 ​ 11,492,059 ​ Net long-term debt ​ $ 7,279,205 ​ $ 295,611 ​ ​ Revolving Term Note ​ The 2020 Credit Facility includes an amended and restated revolving term loan with a $13 million principal commitment. The loan is secured by substantially all of the Company’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. As of the three months ended January 30, 2021 and the fiscal year ended October 31, 2020, the Company was not in compliance with its working capital and net worth covenant requirements, for which a waiver was obtained. The Company was in compliance with its debt covenants on July 31, 2021. However, failure to comply with the protective loan covenants or maintain the required financial ratios in the future may cause acceleration of the outstanding principal balances on the revolving term loan and/or the imposition of fees, charges, or penalties. ​ During February 2021, the 2020 Credit Facility was amended to reduce the working capital covenant to $8 million through May 31, 2021 and increasing to $10 million beginning June 30, 2021. The 2020 Credit Facility was also amended to decrease the net worth requirement from $32 million to $28 million. ​ 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 to 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, the Company 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 3.44% at July 31, 2021. ​ The Company 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, the Company 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. ​ Short Term Revolving Promissory Note ​ In February 2021, the Company entered into a revolving promissory note with its lender in order to finance the operating needs of the Company. The revolving promissory note is subject to the 2020 Credit Facility. Under the terms, the Company may borrow, repay and reborrow up to the aggregate principal commitment amount of $5,000,000. The short term revolving promissory note expired on August 1, 2021 and the remaining balance was paid off at that time. ​ 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, the Company received a loan in the amount of $595,693 through the Paycheck Protection Program. The loan was forgiven in full during March 2021. Forgiveness income is recorded as a component of other income on the statement of operations. ​ In February 2021, the Company received a second Paycheck Protection Program loan in the amount of $595,693. The loan was forgiven in full during August 2021. ​ Negotiable Promissory Note with GFE ​ 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%, which totaled 3.44% at July 31, 2021. 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, which was classified as a current liability. 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 Credit Facility loan covenants, those violations would also be considered a default on this promissory note. ​ Estimated annual maturities of long-term debt at July 31, 2021 are as follows based on the most recent debt agreements: ​ ​ ​ ​ ​ ​ 2022 $ 852,699 2023 ​ 5,717,922 ​ 2024 ​ ​ 719,107 ​ 2025 ​ 720,303 ​ 2026 ​ 121,873 ​ Total debt ​ $ 8,131,904 ​ ​

LEASES

LEASES	9 Months Ended
	Jul. 31, 2021
LEASES
LEASES	8. 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 nine months ended July 31, 2021, 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 ​ 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 July 31, 2021: ​ ​ ​ ​ ​ ​ Twelve Months Ended July 31, ​ ​ ​ 2022 ​ $ 1,767,000 ​ 2023 ​ ​ 1,767,000 ​ 2024 ​ ​ 1,698,750 ​ 2025 ​ ​ 1,650,000 ​ 2026 ​ ​ 1,650,000 ​ Thereafter ​ ​ 925,000 ​ Totals ​ ​ 9,457,750 ​ Less: Amount representing interest ​ ​ 1,168,544 ​ Lease liabilities ​ $ 8,289,206 ​ ​ For the three and nine months ended July 31, 2021, HLBE recorded operating lease costs for these leases of approximately $688,000 and $1,943,000, respectively, in cost of goods sold in the Company’s statement of operations, which approximates the cash paid for the periods. For the three and nine months ended July 31, 2020, HLBE recorded operating lease costs for these leases of approximately $591,000 and $1,731,000, respectively, in cost of goods sold in the Company’s statement of operations, which approximates the cash paid for the periods.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	9 Months Ended
	Jul. 31, 2021
COMMITMENTS AND CONTINGENCIES.
COMMITMENTS AND CONTINGENCIES	9. COMMITMENTS AND CONTINGENCIES ​ Corn Forward Contracts ​ At July 31, 2021, the Company had cash and basis contracts for forward corn purchase commitments for approximately 4,026,000 bushels for deliveries through October 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 no impairment loss existed at July 31, 2021, and approximately $47,000 at October 31, 2020. ​ Ethanol Forward Contracts ​ At July 31, 2021, the Company had fixed and basis contracts to sell approximately $22,621,000 of ethanol for various delivery periods through December 2021, which approximates 42% of its anticipated ethanol sales for that period. ​ Distillers’ Grains Forward Contracts ​ At July 31, 2021, the Company had forward contracts to sell approximately $1,262,000 of distillers’ grain for various delivery periods through September 2021, which approximates 46% of its anticipated distillers’ grain sales for that period. ​ Corn Oil Forward Contracts ​ At July 31, 2021, the Company had forward contracts to sell approximately $900,000 of corn oil for delivery through August 2021, which approximates 84% of its anticipated corn oil sales for that period. ​ Rail Car Rehabilitation Costs ​ HLBE leases 50 hopper rail cars under a multi-year agreement which ends in May 2027. Under the agreement, HLBE is required to pay to rehabilitate each car for “damage” that is considered to be other than normal wear and tear upon turn in of the car(s) at the termination of the lease. HLBE believes that it is probable that we may be assessed for damages incurred. Company management has estimated total costs to rehabilitate the cars at July 31, 2021 and October 31, 2020 to be approximately $631,000 and $597,000, respectively. HLBE accrues the estimated cost of railcar damages over the term of the lease as the cost of damages are incurred. During the three and nine months ended July 31, 2021, the Company has recorded an expense for the recognition of damages and actual repairs in cost of goods of approximately $27,000 and $82,000, respectively. During the three and nine months ended July 31, 2020, the Company has recorded an expense in cost of goods of approximately $16,000 and $70,000, respectively. ​

MEMBERS' EQUITY

MEMBERS' EQUITY	9 Months Ended
	Jul. 31, 2021
MEMBERS' EQUITY.
MEMBERS' EQUITY	10. MEMBERS’ EQUITY ​ Heron Lake BioEnergy, LLC is authorized to issue up to 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 Heron Lake BioEnergy, LLC 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 Heron Lake BioEnergy, LLC’s Board of Governors to become members. Members are entitled to one vote for each unit held. Subject to Heron Lake BioEnergy, LLC’s Member Control Agreement, all units share equally in the profits and losses and distributions of assets on a per unit basis. ​ Heron Lake BioEnergy, LLC has a total of 62,932,107 Class A units and 15,000,000 Class B units issued and outstanding, for an aggregate total of 77,932,107 units issued and outstanding at July 31, 2021 and October 31, 2020. ​ On December 11, 2019, HLBE Pipeline Company acquired the remaining non-controlling interest of Agrinatural for a total price of $2.225 million. The change of interest is recorded as an equity transaction in accordance with ASC 805.

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	9 Months Ended
	Jul. 31, 2021
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS	11. 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 management services 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 incurred by GFE for the three management positions. The management services agreement automatically renews for successive one-year terms unless and until the Company or GFE gives the other party 90-days 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 approximately $133,000 and $122,000 for the three months ended July 31, 2021 and 2020, respectively. Total expenses under this agreement were approximately $376,000 and $380,000 for the nine months ended July 31, 2021 and 2020, respectively, of which approximately $69,000 is included in accounts payable at July 31, 2021. 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 is 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 approximately $27,000 and $81,000 for the three and nine months ended July 31, 2021, respectively. Total expenses under this agreement were approximately $27,000 and $54,000 for the three and nine months ended July 31, 2020, respectively. Corn Purchases - Members HLBE purchased corn from board members of approximately $6,727,000 and $57,000 for the three months ended July 31, 2021 and 2020, respectively, and approximately $15,403,000 and $5,872,000 for the nine months ended July 31, 2021 and 2020, respectively.

BUSINESS SEGMENTS

BUSINESS SEGMENTS	9 Months Ended
	Jul. 31, 2021
BUSINESS SEGMENTS
BUSINESS SEGMENTS	12. 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. 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 (loss), and total assets: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Nine Months Ended ​ ​ July 31, 2021 ​ July 31, 2020 ​ July 31, 2021 ​ July 31, 2020 Revenue: (unaudited) (unaudited) ​ (unaudited) ​ (unaudited) Ethanol production ​ $ 49,861,642 ​ $ 14,039,050 ​ $ 110,604,946 ​ $ 55,398,271 Natural gas pipeline ​ ​ 540,808 ​ ​ 439,448 ​ ​ 2,104,291 ​ ​ 2,182,563 Eliminations ​ ​ (421,721) ​ ​ (313,457) ​ ​ (1,254,337) ​ ​ (1,130,544) Total Revenue ​ $ 49,980,729 ​ $ 14,165,041 ​ $ 111,454,900 ​ $ 56,450,290 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Nine Months Ended ​ ​ July 31, 2021 ​ July 31, 2020 ​ July 31, 2021 ​ July 31, 2020 Operating Income (Loss): ​ (unaudited) (unaudited) ​ (unaudited) ​ (unaudited) Ethanol production $ 4,761,263 $ (4,033,933) ​ $ 2,570,908 $ (13,414,332) Natural gas pipeline ​ 333,587 ​ 203,565 ​ 1,158,062 ​ 1,102,387 Eliminations ​ (146,003) ​ (89,313) ​ (432,498) ​ (376,172) Operating Income (Loss): ​ $ 4,948,847 ​ $ (3,919,681) ​ $ 3,296,472 ​ $ (12,688,117) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ July 31, 2021 ​ October 31, 2020 Assets: (unaudited) ​ ​ Ethanol production ​ $ 48,698,549 ​ $ 49,613,394 Natural gas pipeline ​ 13,779,335 ​ 13,466,787 Total Assets ​ $ 62,477,884 ​ $ 63,080,181 ​

SUMMARY OF SIGNIFICANT ACCOUN_2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	9 Months Ended
	Jul. 31, 2021
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 is a natural gas pipeline company that was formed to construct, own, and operate the natural gas pipeline that provides natural gas to the Company’s ethanol production facility and other customers through a connection with the 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.
Basis of Presentation and Principles of Consolidation	Basis of Presentation and Principles of Consolidation ​ ​ The condensed consolidated unaudited financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and disclosures normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted as permitted by such rules and regulations. These condensed consolidated unaudited financial statements and related notes should be read in conjunction with the financial statements and notes thereto included in the Company’s audited consolidated financial statements for the year ended October 31, 2020, contained in the Company’s annual report on Form 10-K. ​ In the opinion of management, the condensed consolidated unaudited financial statements reflect all adjustments consisting of normal recurring accruals that we consider necessary to present fairly the Company’s results of operations, financial position, and cash flows. The results reported in these condensed consolidated unaudited financial statements should not be regarded as necessarily indicative of results that may be expected for any other fiscal period or for the fiscal year.
Accounting Estimates	Accounting Estimates ​ Management uses estimates and assumptions in preparing these condensed consolidated unaudited financial statements in accordance with generally accepted accounting principles. Those estimates and assumptions affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities, and the reported revenues and expenses. The Company uses estimates and assumptions in accounting for significant matters including, among others, the economic lives of property and equipment, the assumptions used in the analysis of impairment of long-lived assets, valuation of commodity derivative instruments, inventory, inventory purchase and sales commitments, evaluation of railcar rehabilitation costs and evaluation of going concern. 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.
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.
Inventory	Inventory ​ Inventory is stated at the lower of cost or net realizable value. Cost for all inventories is determined using the first in first out method. Net realizable value is the estimated selling prices in the ordinary course of business less reasonably predictable costs of completion, disposal, and transportation. Inventory consists of raw materials, work in process, finished goods, and supplies. Corn is the primary raw material along with other raw materials. Finished goods consist of ethanol, distillers’ grains, and corn oil.
Derivative Instruments	Derivative Instruments ​ From time to time the Company enters into derivative transactions to hedge its exposures to commodity price fluctuations. The Company is required to record these derivatives on the balance sheets at fair value. ​ In order for a derivative to qualify as a hedge, specific criteria must be met and appropriate documentation maintained. Gains and losses from derivatives that do not qualify as hedges, or are undesignated, must be recognized immediately in earnings. If the derivative does qualify as a hedge, depending on the nature of the hedge, changes in the fair value of the derivative will be either offset against the change in fair value of the hedged assets, liabilities, or firm commitments through earnings or recognized in other comprehensive income until the hedged item is recognized in earnings. Changes in the fair value of undesignated derivatives are recorded in earnings. ​ Additionally, the Company is required to evaluate its contracts to determine whether the contracts are derivatives. Certain contracts that literally meet the definition of a derivative may be exempted as “normal purchases or normal sales.” Normal purchases and normal sales are contracts that provide for the purchase or sale of something other than a financial instrument or derivative instrument that will be delivered in quantities expected to be used or sold over a reasonable period in the normal course of business. Contracts that meet the requirements of normal purchases or sales are documented as normal and exempted from accounting and reporting requirements, and therefore, are not marked to market in our condensed consolidated unaudited financial statements. ​ In order to reduce the risks caused by market fluctuations, the Company occasionally hedges its anticipated corn, natural gas, and denaturant purchases and ethanol sales by entering into options and futures contracts. These contracts are used with the intention to fix the purchase price of anticipated requirements for corn in the Company's ethanol production activities and the related sales price of ethanol. The fair value of these contracts is based on quoted prices in active exchange-traded or over-the-counter market conditions. Although the Company believes its commodity derivative positions are economic hedges, none have been formally designated as a hedge for accounting purposes and derivative positions are recorded on the balance sheet at their fair market value, with changes in fair value recognized in current period earnings or losses. The Company does not enter into financial instruments for trading or speculative purposes. ​ The Company has adopted authoritative guidance related to “Derivatives and Hedging,” and has included the required enhanced quantitative and qualitative disclosure about objectives and strategies for using derivatives, quantitative disclosures about fair value amounts of gains and losses from derivative instruments, and disclosures about credit-risk-related contingent features in derivative agreements. See further discussion in Note 5.
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.

REVENUE (Tables)

REVENUE (Tables)	9 Months Ended
	Jul. 31, 2021
REVENUE
Schedule of disaggregated revenue by source	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended July 31, 2021 ​ ​ (unaudited) ​ Ethanol Production Natural Gas Pipeline Total Ethanol ​ $ 39,647,617 ​ $ — ​ $ 39,647,617 Distillers’ Grains ​ ​ 7,221,342 ​ ​ — ​ ​ 7,221,342 Corn Oil ​ ​ 2,581,949 ​ ​ — ​ ​ 2,581,949 Other ​ ​ 410,734 ​ ​ — ​ ​ 410,734 Natural Gas ​ ​ — ​ ​ 119,087 ​ ​ 119,087 Total Revenues ​ $ 49,861,642 ​ $ 119,087 ​ $ 49,980,729 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended July 31, 2020 ​ ​ (unaudited) ​ Ethanol Production Natural Gas Pipeline Total Ethanol ​ $ 11,920,049 ​ $ — ​ $ 11,920,049 Distillers’ Grains ​ ​ 1,645,859 ​ ​ — ​ ​ 1,645,859 Corn Oil ​ ​ 401,623 ​ ​ — ​ ​ 401,623 Other ​ ​ 71,519 ​ ​ — ​ ​ 71,519 Natural Gas ​ ​ — ​ ​ 125,991 ​ ​ 125,991 Total Revenues ​ $ 14,039,050 ​ $ 125,991 ​ $ 14,165,041 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Nine Months Ended July 31, 2021 ​ ​ (unaudited) ​ ​ ​ Ethanol Production ​ ​ Natural Gas Pipeline ​ ​ Total Ethanol ​ $ 87,688,837 ​ $ — ​ $ 87,688,837 Distillers’ Grains ​ ​ 16,147,687 ​ ​ — ​ ​ 16,147,687 Corn Oil ​ ​ 5,828,429 ​ ​ — ​ ​ 5,828,429 Other ​ ​ 939,993 ​ ​ — ​ ​ 939,993 Natural Gas ​ ​ — ​ ​ 849,954 ​ ​ 849,954 Total Revenues ​ $ 110,604,946 ​ $ 849,954 ​ $ 111,454,900 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Nine Months Ended July 31, 2020 ​ ​ (unaudited) ​ ​ ​ Ethanol Production ​ ​ Natural Gas Pipeline ​ ​ Total Ethanol ​ $ 43,306,209 ​ $ — ​ $ 43,306,209 Distillers’ Grains ​ ​ 9,481,770 ​ ​ — ​ ​ 9,481,770 Corn Oil ​ ​ 2,051,049 ​ ​ — ​ ​ 2,051,049 Other ​ ​ 559,242 ​ ​ — ​ ​ 559,242 Natural Gas ​ ​ — ​ ​ 1,052,020 ​ ​ 1,052,020 Total Revenues ​ $ 55,398,270 ​ $ 1,052,020 ​ $ 56,450,290

INVENTORY (Tables)

INVENTORY (Tables)	9 Months Ended
	Jul. 31, 2021
INVENTORY
Schedule of inventory	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ July 31, 2021 ​ October 31, 2020 ​ ​ (unaudited) ​ ​ Raw materials ​ $ 3,577,292 ​ $ 2,440,997 ​ Work in process ​ 1,091,479 ​ 713,037 ​ Finished goods ​ 3,387,051 ​ 2,677,095 ​ Supplies ​ 1,299,941 ​ 1,232,546 ​ Totals ​ $ 9,355,763 ​ $ 7,063,675 ​

DERIVATIVE INSTRUMENTS (Tables)

DERIVATIVE INSTRUMENTS (Tables)	9 Months Ended
	Jul. 31, 2021
DERIVATIVE INSTRUMENTS
Schedule of derivative instruments	The following table provides detail regarding the Company’s derivative instruments at July 31, 2021, none of which are designated as hedging instruments: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Consolidated Balance Sheet Location Assets Liabilities Corn contracts ​ Commodity derivative instruments ​ $ — ​ $ 28,831 ​ Totals ​ ​ ​ $ — ​ $ 28,831 ​ 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 ​
Schedule of gains (losses) from derivative instruments	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Consolidated Statement of Three Months Ended July 31, ​ Nine Months Ended July 31, ​ Operations Location 2021 2020 2021 2020 Corn contracts Cost of goods sold ​ $ (269,410) ​ $ (287,301) ​ $ (3,088,829) ​ $ (803,632) ​ Ethanol contracts ​ Revenues ​ ​ — ​ ​ (31,945) ​ ​ 110,241 ​ ​ (195,535) ​ Total loss ​ ​ ​ $ (269,410) ​ $ (319,246) ​ $ (2,978,588) ​ $ (999,167) ​

FAIR VALUE (Tables)

FAIR VALUE (Tables)	9 Months Ended
	Jul. 31, 2021
FAIR VALUE
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 July 31, 2021: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fair Value Measurement Using ​ ​ Carrying Amount in ​ ​ ​ Quoted Prices in ​ Significant Other ​ Significant ​ Consolidated ​ ​ Active Markets Observable Inputs Unobservable Inputs ​ Balance Sheet ​ Fair Value (Level 1) (Level 2) (Level 3) Financial Liabilities: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Commodity Derivative instruments - Corn ​ $ 28,831 ​ $ 28,831 ​ $ 28,831 ​ $ — ​ $ — ​ Accounts Payable (1) ​ $ 99,349 ​ $ 99,349 ​ $ — ​ $ 99,349 ​ $ — ​ ​ The following table sets forth, by level, the Company assets and liabilities that were accounted for at fair value on a recurring basis at October 31, 2020: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 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 - 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 ​ $ — ​ (1)

DEBT FACILITIES (Tables)

DEBT FACILITIES (Tables)	9 Months Ended
	Jul. 31, 2021
DEBT FACILITIES
Schedule of long-term debt	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ July 31, 2021 October 31, 2020 ​ ​ ​ (unaudited) ​ ​ ​ 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. ​ ​ 2,400,000 ​ ​ 3,000,000 ​ Short term revolving note, see notes below ​ ​ 6,000 ​ ​ — ​ 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 current assets that are held on deposit to be applied with the final payments of the assessment. ​ 130,211 ​ ​ 300,551 ​ SBA Paycheck Protection Program loan, see terms below. ​ 595,693 ​ ​ 595,693 ​ Granite Falls Energy note, see terms below. ​ 5,000,000 ​ ​ — ​ Totals ​ 8,131,904 ​ 11,787,670 ​ Less amounts due within one year ​ 852,699 ​ 11,492,059 ​ Net long-term debt ​ $ 7,279,205 ​ $ 295,611 ​
Schedule of estimated maturities of long-term debt	​ ​ ​ ​ ​ ​ 2022 $ 852,699 2023 ​ 5,717,922 ​ 2024 ​ ​ 719,107 ​ 2025 ​ 720,303 ​ 2026 ​ 121,873 ​ Total debt ​ $ 8,131,904 ​

LEASES (Tables)

LEASES (Tables)	9 Months Ended
	Jul. 31, 2021
LEASES
Summary of maturities of operating lease liabilities	​ ​ ​ ​ ​ ​ Twelve Months Ended July 31, ​ ​ ​ 2022 ​ $ 1,767,000 ​ 2023 ​ ​ 1,767,000 ​ 2024 ​ ​ 1,698,750 ​ 2025 ​ ​ 1,650,000 ​ 2026 ​ ​ 1,650,000 ​ Thereafter ​ ​ 925,000 ​ Totals ​ ​ 9,457,750 ​ Less: Amount representing interest ​ ​ 1,168,544 ​ Lease liabilities ​ $ 8,289,206 ​

BUSINESS SEGMENTS (Tables)

BUSINESS SEGMENTS (Tables)	9 Months Ended
	Jul. 31, 2021
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	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Nine Months Ended ​ ​ July 31, 2021 ​ July 31, 2020 ​ July 31, 2021 ​ July 31, 2020 Revenue: (unaudited) (unaudited) ​ (unaudited) ​ (unaudited) Ethanol production ​ $ 49,861,642 ​ $ 14,039,050 ​ $ 110,604,946 ​ $ 55,398,271 Natural gas pipeline ​ ​ 540,808 ​ ​ 439,448 ​ ​ 2,104,291 ​ ​ 2,182,563 Eliminations ​ ​ (421,721) ​ ​ (313,457) ​ ​ (1,254,337) ​ ​ (1,130,544) Total Revenue ​ $ 49,980,729 ​ $ 14,165,041 ​ $ 111,454,900 ​ $ 56,450,290
Schedule of operating income (loss) and total assets	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Nine Months Ended ​ ​ July 31, 2021 ​ July 31, 2020 ​ July 31, 2021 ​ July 31, 2020 Operating Income (Loss): ​ (unaudited) (unaudited) ​ (unaudited) ​ (unaudited) Ethanol production $ 4,761,263 $ (4,033,933) ​ $ 2,570,908 $ (13,414,332) Natural gas pipeline ​ 333,587 ​ 203,565 ​ 1,158,062 ​ 1,102,387 Eliminations ​ (146,003) ​ (89,313) ​ (432,498) ​ (376,172) Operating Income (Loss): ​ $ 4,948,847 ​ $ (3,919,681) ​ $ 3,296,472 ​ $ (12,688,117) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ July 31, 2021 ​ October 31, 2020 Assets: (unaudited) ​ ​ Ethanol production ​ $ 48,698,549 ​ $ 49,613,394 Natural gas pipeline ​ 13,779,335 ​ 13,466,787 Total Assets ​ $ 62,477,884 ​ $ 63,080,181

SUMMARY OF SIGNIFICANT ACCOUN_3

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Nature of Business (Details) - gal gal in Millions	Jul. 31, 2021	Dec. 11, 2019
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Operating capacity of Ethanol plant owned and operated	72.3
Agrinatural, LLC
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Noncontrolling interest, ownership percentage by noncontrolling owners	27.00%
HLBE Pipeline Company, LLC | Agrinatural, LLC
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Ownership percentage		100.00%

SUMMARY OF SIGNIFICANT ACCOUN_4

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Revenue Recognition (Details)	9 Months Ended
	Jul. 31, 2021company
CONCENTRATIONS
Number of distinct marketing companies	3
Ethanol | Eco-Energy, Inc. | Revenue from product line | Product
CONCENTRATIONS
Concentration percentage	100.00%
Distillers' Grains | Gavilon, Inc. | Revenue from product line | Product
CONCENTRATIONS
Concentration percentage	100.00%
Corn Oil | RPMG, Inc. | Revenue from product line | Product
CONCENTRATIONS
Concentration percentage	100.00%

SUMMARY OF SIGNIFICANT ACCOUN_5

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Reportable Operating Segments (Details)	9 Months Ended
	Jul. 31, 2021segment
Segment Reporting Information
Number of reportable segments	2
Ethanol production
Segment Reporting Information
Number of reportable segments	1

RISKS AND UNCERTAINTIES (Detail

RISKS AND UNCERTAINTIES (Details) $ / shares in Units, $ in Millions	9 Months Ended
	Jul. 31, 2021USD ($)$ / shares
Total revenues | Customer | Ethanol | Minimum
RISKS AND UNCERTAINTIES
Concentration percentage	70.00%
Total revenues | Customer | Ethanol | Maximum
RISKS AND UNCERTAINTIES
Concentration percentage	90.00%
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%
Granite Falls Energy LLC
RISKS AND UNCERTAINTIES
Minority ownership | $	$ 14
Price per unit paid to minority owners | $ / shares	$ 0.36405

REVENUE - Revenue (Details)

REVENUE - Revenue (Details) - USD ($)	3 Months Ended		9 Months Ended
	Jul. 31, 2021	Jul. 31, 2020	Jul. 31, 2021	Jul. 31, 2020
Revenue Recognition
Total Revenues	$ 49,980,729	$ 14,165,041	$ 111,454,900	$ 56,450,290
Payment terms			10 days
Ethanol production
Revenue Recognition
Total Revenues	49,861,642	14,039,050	$ 110,604,946	55,398,270
Natural gas pipeline
Revenue Recognition
Total Revenues	119,087	125,991	849,954	1,052,020
Ethanol
Revenue Recognition
Total Revenues	39,647,617	11,920,049	87,688,837	43,306,209
Ethanol | Ethanol production
Revenue Recognition
Total Revenues	39,647,617	11,920,049	87,688,837	43,306,209
Distillers' Grains
Revenue Recognition
Total Revenues	7,221,342	1,645,859	16,147,687	9,481,770
Distillers' Grains | Ethanol production
Revenue Recognition
Total Revenues	7,221,342	1,645,859	16,147,687	9,481,770
Corn Oil
Revenue Recognition
Total Revenues	2,581,949	401,623	5,828,429	2,051,049
Corn Oil | Ethanol production
Revenue Recognition
Total Revenues	2,581,949	401,623	5,828,429	2,051,049
Other
Revenue Recognition
Total Revenues	410,734	71,519	939,993	559,242
Other | Ethanol production
Revenue Recognition
Total Revenues	410,734	71,519	939,993	559,242
Natural Gas
Revenue Recognition
Total Revenues	119,087	125,991	$ 849,954	1,052,020
Payment terms			20 days
Natural Gas | Natural gas pipeline
Revenue Recognition
Total Revenues	$ 119,087	$ 125,991	$ 849,954	$ 1,052,020

INVENTORY (Details)

INVENTORY (Details) - USD ($)	9 Months Ended
	Jul. 31, 2021	Jul. 31, 2020	Oct. 31, 2020
Inventory
Raw materials	$ 3,577,292		$ 2,440,997
Work in process	1,091,479		713,037
Finished goods	3,387,051		2,677,095
Supplies	1,299,941		1,232,546
Totals	9,355,763		$ 7,063,675
Ethanol
Inventory
Loss on inventory	121,000	$ 155,000
Corn
Inventory
Loss on inventory	$ 0	$ 184,000

DERIVATIVE INSTRUMENTS (Details

DERIVATIVE INSTRUMENTS (Details)	9 Months Ended	12 Months Ended
	Jul. 31, 2021USD ($)bu	Oct. 31, 2020USD ($)bu
Derivative instruments
Financial Assets		$ 15,150
Financial Liabilities	$ 28,831	$ 173,928
Corn contracts
Derivative instruments
Notional volume | bu	655,000	2,095,000
Corn contracts | Commodity Option
Derivative instruments
Notional volume | bu	575,000	1,380,000
Corn contracts | Long/Purchase
Derivative instruments
Notional volume | bu		325,000
Corn contracts | Short/Sale
Derivative instruments
Notional volume | bu		1,770,000
Derivatives held by a broker
Derivative instruments
Restricted cash	$ 337,000	$ 514,000
Derivatives not designated as hedging instruments
Derivative instruments
Financial Assets		15,150
Financial Liabilities	28,831	173,928
Derivatives not designated as hedging instruments | Corn contracts
Derivative instruments
Financial Liabilities	$ 28,831	173,928
Derivatives not designated as hedging instruments | Ethanol contracts
Derivative instruments
Financial Assets		$ 15,150

DERIVATIVE INSTRUMENTS, Gains (

DERIVATIVE INSTRUMENTS, Gains (losses) (Details) - Derivatives not designated as hedging instruments - USD ($)	3 Months Ended		9 Months Ended
	Jul. 31, 2021	Jul. 31, 2020	Jul. 31, 2021	Jul. 31, 2020
Derivative Instruments
Total loss	$ (269,410)	$ (319,246)	$ (2,978,588)	$ (999,167)
Corn contracts | Cost of goods sold
Derivative Instruments
Total loss	$ (269,410)	(287,301)	(3,088,829)	(803,632)
Ethanol contracts | Revenues.
Derivative Instruments
Total loss		$ (31,945)	$ 110,241	$ (195,535)

FAIR VALUE (Details)

FAIR VALUE (Details) - USD ($)	Jul. 31, 2021	Oct. 31, 2020
Fair value measurements
Financial Assets		$ 15,150
Financial Liabilities	$ 28,831	173,928
Carrying Amount | Accounts payable
Fair value measurements
Financial Liabilities	99,349	553,248
Recurring basis | Fair Value. | Accounts payable
Fair value measurements
Financial Liabilities	99,349	553,248
Level 2 | Recurring basis | Fair Value. | Accounts payable
Fair value measurements
Financial Liabilities	99,349	553,248
Ethanol contracts | Carrying Amount
Fair value measurements
Financial Assets		15,150
Ethanol contracts | Recurring basis | Fair Value.
Fair value measurements
Financial Assets		15,150
Ethanol contracts | Level 1 | Recurring basis | Fair Value.
Fair value measurements
Financial Assets		15,150
Corn contracts | Carrying Amount
Fair value measurements
Financial Liabilities	28,831	173,928
Corn contracts | Recurring basis | Fair Value.
Fair value measurements
Financial Liabilities	28,831	173,928
Corn contracts | Level 1 | Recurring basis | Fair Value.
Fair value measurements
Financial Liabilities	$ 28,831	$ 173,928

DEBT FACILITIES (Details)

DEBT FACILITIES (Details) - USD ($)	9 Months Ended	12 Months Ended
	Jul. 31, 2021	Oct. 31, 2020	Jun. 30, 2020
DEBT FACILITIES
Long-term debt	$ 8,131,904	$ 11,787,670
Less amounts due on demand or within one year	852,699	11,492,059
Net long term debt	7,279,205	295,611
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	2,400,000	3,000,000
Interest rate (as a percent)			3.80%
Short term revolving note
DEBT FACILITIES
Long-term debt	6,000
Assessments payable as part of water treatment agreement, with interest at 6.55%, due in October 2021
DEBT FACILITIES
Long-term debt	130,211	300,551
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	$ 595,693
Negotiable Promissory Note | Granite Falls Energy LLC Excluding Heron Lake Bioenergy LLC
DEBT FACILITIES
Long-term debt	$ 5,000,000

DEBT FACILITIES - Additional in

DEBT FACILITIES - Additional information (Details)	Apr. 18, 2020USD ($)	Jun. 30, 2021USD ($)	Feb. 28, 2021USD ($)	Dec. 31, 2020USD ($)	Jun. 30, 2020USD ($)installment	May 31, 2021USD ($)	Jul. 31, 2021USD ($)	Jul. 31, 2020USD ($)	Jan. 31, 2021USD ($)
Debt financing
Long-term debt							$ 595,693	$ 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
Working capital covenant		$ 10,000,000				$ 8,000,000
Net worth requirement amount			$ 28,000,000						$ 32,000,000
Spread above variable interest rate (as a percent)							0.00%
Interest rate at end of period (as a percent)							3.44%
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		595,693
Single advance term note payable to lending institution
Debt financing
Initial amount of debt					$ 3,000,000
Interest rate (as a percent)					3.80%
Number of Installments | installment					10
Negotiable Promissory Note | Granite Falls Energy LLC Excluding Heron Lake Bioenergy LLC
Debt financing
Maximum borrowing capacity				$ 5,000,000					$ 5,000,000
Spread above variable interest rate (as a percent)				1.00%
Interest rate at end of period (as a percent)							3.44%
Negotiable Promissory Note | 2020 Credit Facility
Debt financing
Maximum borrowing capacity			$ 5,000,000
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%

DEBT FACILITIES - Estimated ann

DEBT FACILITIES - Estimated annual maturities (Details) - USD ($)	Jul. 31, 2021	Oct. 31, 2020
Estimated maturities of long-term debt
2022	$ 852,699
2023	5,717,922
2024	719,107
2025	720,303
2026	121,873
Long-term debt	$ 8,131,904	$ 11,787,670

LEASES (Details)

LEASES (Details) - USD ($)	3 Months Ended		9 Months Ended
	Jul. 31, 2021	Jul. 31, 2020	Jul. 31, 2021	Jul. 31, 2020
Leases
Weighted average discount rate	4.87%		4.87%
Weighted average remaining lease term	4 years		4 years
Cost of goods sold
Leases
Operating lease costs	$ 688,000	$ 591,000	$ 1,943,000	$ 1,731,000
Minimum
Leases
Remaining term			1 year
Maximum
Leases
Remaining term			7 years

LEASES - Maturities of operatin

LEASES - Maturities of operating lease liabilities (Details)	Jul. 31, 2021USD ($)
Maturities of operating lease liabilities
2022	$ 1,767,000
2023	1,767,000
2024	1,698,750
2025	1,650,000
2026	1,650,000
Thereafter	925,000
Totals	9,457,750
Less: Amount representing interest	1,168,544
Lease liabilities	$ 8,289,206

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Details)	3 Months Ended		9 Months Ended		12 Months Ended
	Jul. 31, 2021USD ($)	Jul. 31, 2020USD ($)	Jul. 31, 2021USD ($)itembu	Jul. 31, 2020USD ($)	Oct. 31, 2020USD ($)
Commodity Contract
COMMITMENTS AND CONTINGENCIES
Impairment charge			$ 0		$ 47,000
Corn Forward Contracts | Long/Purchase
COMMITMENTS AND CONTINGENCIES
Notional volume | bu			4,026,000
Ethanol Forward Contracts | Short/Sale
COMMITMENTS AND CONTINGENCIES
Notional value	$ 22,621,000		$ 22,621,000
Anticipated sales (as a percent)			42.00%
Distillers Grains Forward Contracts | Short/Sale
COMMITMENTS AND CONTINGENCIES
Notional value	1,262,000		$ 1,262,000
Anticipated sales (as a percent)			46.00%
Corn Oil Forward Contract | Short/Sale
COMMITMENTS AND CONTINGENCIES
Notional value	900,000		$ 900,000
Anticipated sales (as a percent)			84.00%
Rail Car Rehabilitation Agreement
COMMITMENTS AND CONTINGENCIES
Number of hopper rail cars leased | item			50
Estimated total costs to rehabilitate the cars	27,000	$ 16,000	$ 82,000	$ 70,000
Estimated long-term liability of rehabilitation costs	$ 631,000		$ 631,000		$ 597,000

MEMBERS' EQUITY (Details)

MEMBERS' EQUITY (Details)	Dec. 11, 2019USD ($)	Jan. 31, 2020USD ($)shares	Jul. 31, 2021Voteshares	Apr. 30, 2021shares	Jan. 31, 2021shares	Oct. 31, 2020shares	Jul. 31, 2020shares	Apr. 30, 2020shares	Oct. 31, 2019shares
Members' Equity
Common Unit, Authorized			80,000,000
Common Unit, Issued			77,932,107			77,932,107
Common Unit, Outstanding			77,932,107			77,932,107
Minimum number of units held to be member			2,500
Number of votes per unit | Vote			1
Remaining non-controlling interest | $	$ 2,225,000	$ 2,225,000
Class A units
Members' Equity
Common Unit, Authorized			65,000,000
Common Unit, Issued			62,932,107			62,932,107
Common Unit, Outstanding		62,932,107	62,932,107	62,932,107	62,932,107	62,932,107	62,932,107	62,932,107	62,932,107
Class B units
Members' Equity
Common Unit, Authorized			15,000,000
Common Unit, Issued			15,000,000			15,000,000
Common Unit, Outstanding		15,000,000	15,000,000	15,000,000	15,000,000	15,000,000	15,000,000	15,000,000	15,000,000

RELATED PARTY TRANSACTIONS (Det

RELATED PARTY TRANSACTIONS (Details)	3 Months Ended		9 Months Ended
	Jul. 31, 2021USD ($)	Jul. 31, 2020USD ($)	Jul. 31, 2021USD ($)item	Jul. 31, 2020USD ($)
Board Members | Corn
RELATED PARTY TRANSACTIONS
Amount purchased from related party	$ 6,727,000	$ 57,000	$ 15,403,000	$ 5,872,000
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	133,000	122,000	$ 376,000	380,000
Granite Falls Energy LLC Excluding Heron Lake Bioenergy LLC | Accounts Payable
RELATED PARTY TRANSACTIONS
Amount of related party transaction			$ 69,000
Agrinatural, LLC
RELATED PARTY TRANSACTIONS
Renewal term			1 year
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	$ 27,000	$ 27,000	$ 81,000	$ 54,000

BUSINESS SEGMENTS (Details)

BUSINESS SEGMENTS (Details)	3 Months Ended		9 Months Ended
	Jul. 31, 2021USD ($)	Jul. 31, 2020USD ($)	Jul. 31, 2021USD ($)segment	Jul. 31, 2020USD ($)	Oct. 31, 2020USD ($)
Segment Reporting Information
Number of operating segments | segment			2
Total Revenues	$ 49,980,729	$ 14,165,041	$ 111,454,900	$ 56,450,290
Operating Income (Loss)	4,948,847	(3,919,681)	3,296,472	(12,688,117)
Assets	62,477,884		62,477,884		$ 63,080,181
Ethanol production
Segment Reporting Information
Total Revenues	49,861,642	14,039,050	110,604,946	55,398,270
Natural gas pipeline
Segment Reporting Information
Total Revenues	119,087	125,991	849,954	1,052,020
Operating Segments | Ethanol production
Segment Reporting Information
Total Revenues	49,861,642	14,039,050	110,604,946	55,398,271
Operating Income (Loss)	4,761,263	(4,033,933)	2,570,908	(13,414,332)
Assets	48,698,549		48,698,549		49,613,394
Operating Segments | Natural gas pipeline
Segment Reporting Information
Total Revenues	540,808	439,448	2,104,291	2,182,563
Operating Income (Loss)	333,587	203,565	1,158,062	1,102,387
Assets	13,779,335		13,779,335		$ 13,466,787
Intersegment Eliminations
Segment Reporting Information
Total Revenues	(421,721)	(313,457)	(1,254,337)	(1,130,544)
Operating Income (Loss)	$ (146,003)	$ (89,313)	$ (432,498)	$ (376,172)