Lincolnway Energy 10-Q 11 May 15 2015 Q2 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	6 Months Ended
	Mar. 31, 2015	1-May-15
Document and Entity Information [Abstract]
Entity Registrant Name	Lincolnway Energy, LLC
Entity Central Index Key	1350420
Current Fiscal Year End Date	-21
Entity Filer Category	Non-accelerated Filer
Document Type	10-Q
Document Period End Date	31-Mar-15
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	Q2
Amendment Flag	FALSE
Entity Common Stock, Shares Outstanding		42,049

Balance_Sheets_Statement

Balance Sheets Statement (USD $)	Mar. 31, 2015	Sep. 30, 2014
CURRENT ASSETS
Cash and cash equivalents	$4,722,569	$22,978,388
Cash	250	30,273
Cash Equivalents, at Carrying Value	4,722,319	22,948,115
Derivative financial instruments (Note 8 and 9)	626,754	487,078
Trade and other accounts receivable (Note 7)	4,230,914	1,543,599
Inventories (Note 3)	3,839,193	4,738,106
Prepaid expenses and other	252,367	362,495
Total current assets	13,671,797	30,109,666
PROPERTY AND EQUIPMENT
Land and land improvements	6,944,305	6,944,305
Buildings and improvements	1,625,531	1,625,531
Plant and process equipment	88,147,815	81,268,966
Office furniture and equipment	428,477	402,406
Construction in progress	8,929,046	7,854,739
Property, plant and equipment, gross	106,075,174	98,095,947
Accumulated depreciation	-70,135,112	-66,104,599
Property, plant and equipment, net	35,940,062	31,991,348
OTHER ASSETS
Financing costs, net of amortization of $393,057 and $375,522	78,905	96,439
Other	777,479	550,184
Other assets, noncurrent	856,384	646,623
Assets	50,468,243	62,747,637
CURRENT LIABILITIES
Accounts payable	2,734,500	2,111,296
Accounts payable, related party (Note 6)	643,602	717,554
Current maturities of long-term debt (Note 5)	53,714	53,153
Current settlement payable, related party (Note 6)	425,000	0
Accrued expenses	1,117,137	1,738,131
Total current liabilities	4,973,953	4,620,134
NONCURRENT LIABILITIES
Long-term debt, less current maturities (Note 5)	54,853	81,851
Settlement payable, net of current amount, related party (Note 6)	0	425,000
Deferred revenue	941,667	925,000
Other	450,000	450,000
Total noncurrent liabilities	1,446,520	1,881,851
COMMITMENTS AND CONTINGENCY (Notes 7 and 10)
MEMBERS' EQUITY
Member contributions, 42,049 units issued and outstanding	38,990,105	38,990,105
Retained earnings	5,057,665	17,255,547
Members' Equity	44,047,770	56,245,652
Liabilities and Equity	$50,468,243	$62,747,637

Balance_Sheets_Parenthetical_S

Balance Sheets Parenthetical Statement (USD $)	6 Months Ended	12 Months Ended
	Mar. 31, 2015	Sep. 30, 2014
OTHER ASSETS
Financing costs, net of amortization of	$366,755	$340,453
MEMBER'S EQUITY
Units issued and outstanding	42,049	42,049

Statements_of_Operations_State

Statements of Operations Statement (USD $)	3 Months Ended		6 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Mar. 31, 2015	Mar. 31, 2014
Revenues (Notes 2 and 7)	$30,168,024	$36,494,001	$60,188,987	$71,249,137
Cost of goods sold (Note 7)	29,667,066	31,443,627	57,099,539	65,575,629
Gross profit	500,958	5,050,374	3,089,448	5,673,508
General and administrative expenses	748,136	776,590	1,610,935	1,651,124
Operating income (loss)	-247,178	4,273,784	1,478,513	4,022,384
Other income (expense):
Interest income	4,065	2,660	15,234	5,451
Interest expense	-12,743	-2,013	-25,704	-22,211
Other income (expense)	-8,678	647	-10,470	-16,760
Net income (loss)	($255,856)	$4,274,431	$1,468,043	$4,005,624
Weighted average units outstanding	42,049	42,049	42,049	42,049
Net income (loss) per unit - basic and diluted	($6.08)	$101.65	$34.91	$95.26

Statement_of_Cash_Flows_Statem

Statement of Cash Flows Statement (USD $)	6 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Statement of Cash Flows [Abstract]
Cash Equivalents, at Carrying Value	$4,722,319
SUPPLEMENTAL DISCLOSURES OF NONCASH INVESTING AND FINANCING ACTIVITIES
Construction in progress included in accrued expenses	32,508	0
Construction in progress included in accounts payable	746,799	1,752,195
SUPPLEMENTAL DISCLOSURE OF CASH FLOW
INFORMATION, cash paid for interest	1,425	33,056
CASH AND CASH EQUIVALENTS
Beginning	22,978,388	1,936,800
Ending	4,722,569	5,983,280
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from Short-term Debt	-13,665,925	0
Payments on long-term borrowings	-26,437	-25,888
Net cash (used in) financing activities	-13,692,362	-25,888
Net increase (decrease) in cash and cash equivalents	-18,255,819	4,046,480
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property and equipment	-7,695,022	-2,349,254
Proceeds from Sale of Property, Plant, and Equipment	0	80,000
Payments to Acquire Investments	0	-3,082
Net cash (used in) investing activities	-7,695,022	-2,272,336
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	4,049,490	3,688,396
Gain (Loss) on Disposition of Property Plant Equipment	0	-70,367
Changes in working capital components:
Derivative financial instruments	-139,676	349,361
Trade and other accounts receivable	-2,687,315	-681,499
Inventories	898,913	730,493
Prepaid expenses and other	-117,167	19,660
Accounts payable	335,773	-1,068,228
Accounts payable, related party	-73,952	-251,710
Settlement fee payable, related party	0	-425,000
Accrued expenses	-602,544	47,974
Net cash provided by operating activities	3,131,565	6,344,704
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$1,468,043	$4,005,624

Summary_of_Significant_Account

Summary of Significant Accounting Policies (Notes) (USD $)	6 Months Ended
	Mar. 31, 2015	Sep. 30, 2014
	gal
Summary of Significant Accounting Policies [Abstract]
Principal Business Activity [Policy Text Block]	Principal business activity:  Lincolnway Energy, LLC (the Company), located in Nevada, Iowa, was formed in May 2004 to pool investors to build a 50 million gallon annual production dry mill corn-based ethanol plant.  The Company began making sales on May 30, 2006 and became operational during the quarter ended June 30, 2006. The Company is directly influenced by commodity markets and the agricultural and energy industries and, accordingly, its results of operations and financial condition may be significantly affected by cyclical market trends and the regulatory, political and economic conditions in these industries.
Basis of Accounting, Policy [Policy Text Block]	Basis of presentation and other information: The balance sheet as of September 30, 2014 was derived from the Company's audited balance sheet as of that date.  The accompanying financial statements as of March 31, 2015 and for the three months and six months ended March 31, 2015 and 2014 are unaudited and reflect all adjustments (consisting only of normal recurring adjustments) which are, in the opinion of management, necessary for a fair presentation of the financial position and operating results for the interim periods.  These unaudited financial statements and notes should be read in conjunction with the audited financial statements and notes thereto, for the year ended September 30, 2014 contained in the Company's Annual Report  on Form 10-K.  The results of operations for the interim periods presented are not necessarily indicative of the results for the entire year.
Use of Estimates, Policy [Policy Text Block]	Use of estimates:  The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period.  Actual results could differ from those estimates.
Cash and Cash Equivalents, Policy [Policy Text Block]	Cash and cash equivalents: The Company considers all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents. Although the Company maintains its cash accounts in one bank, the Company believes it is not exposed to any significant credit risk on cash and cash equivalents. The Company periodically invests excess cash in a bank overnight reverse repurchase account, which totaled approximately $4.7 million and $22.9 million at March 31, 2015 and September 30, 2014, respectively. In accordance with the terms of the repurchase agreements, the Company does not take possession of the related securities. The agreements also contain provisions to ensure that the market value of the underlying assets remain sufficient to protect the Company in the event of default by the bank by requiring that the underlying securities have a total market value of at least 100% of the bank's total obligations under the agreements.
Trade and Other Accounts Receivable, Policy [Policy Text Block]	Trade accounts receivable: Trade accounts receivable are recorded at original invoice amounts less an estimate made for doubtful receivables based on a review of all outstanding amounts on a monthly basis. Management determines the allowance for doubtful accounts by regularly evaluating individual customer receivables and considering customers financial condition, credit history and current economic conditions. Receivables are written off when deemed uncollectible. Recoveries of receivables written off are recorded when received. A receivable is considered past due if any portion of the receivable is outstanding more than 90 days. There is no allowance for doubtful account balance as of March 31, 2015 and September 30, 2014.
Inventory, Policy [Policy Text Block]	Inventories:  Inventories are stated at the lower of cost or market using the first-in, first-out method.  In the valuation of inventories and purchase and sale commitments, market is based on current replacement values except that it does not exceed net realizable values and is not less than net realizable values reduced by allowances for approximate normal profit margin.
Deferred Revenue [Policy Text Block]	Deferred revenue: Deferred revenue represents fees received under a service agreement in advance of services being performed. The related revenue is deferred and recognized as the services are performed over the 10 year agreement.
Income Tax, Policy [Policy Text Block]	Income taxes:  The Company is organized as a partnership for federal and state income tax purposes and generally does not incur income taxes.  Instead, the Company’s 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.
Earnings Per Share, Policy [Policy Text Block]	Earnings per unit:  Basic and diluted net income (loss) per unit have been computed on the basis of the weighted average number of units outstanding during each period presented.
Allowance for Doubtful Accounts Receivable	$0	$0
Annual ethanol production	50,000,000
Number of days outstanding for a past due trade receivables	90 days

Revenue

Revenue	6 Months Ended
	Mar. 31, 2015
Revenue by product [Abstract]
Revenue	Revenues
	Components of revenues are as follows:
		Three Months Ended				Six Months Ended
		March 31, 2015		March 31, 2014		March 31, 2015		March 31, 2014
	Ethanol, net of hedging gain (loss)	$	22,767,894	$	27,318,521	$	48,134,120	$	51,880,817
	Distillers Grains	6,501,539		8,501,041		10,502,583		17,844,526
	Other	898,591		674,439		1,552,284		1,523,794
	Total	$	30,168,024	$	36,494,001	$	60,188,987	$	71,249,137

Inventories

Inventories	6 Months Ended
	Mar. 31, 2015
Inventory Disclosure [Abstract]
Inventories	Inventories
	Inventories consist of the following as of:
		March 31,		September 30,
		2015		2014
	Raw materials, including corn, chemicals and supplies	$	2,575,658	$	2,525,462
	Work in process	689,567		770,759
	Ethanol and distillers grains	573,968		1,441,885
	Total	$	3,839,193	$	4,738,106

Revolving_Credit_Loan

Revolving Credit Loan	6 Months Ended
	Mar. 31, 2015
Revolving Credit Loan [Abstract]
Revolving Credit Loan	Revolving Credit Loan
	The Company has a monitored revolving credit loan, with a bank, for up to $8,500,000. The amount available and outstanding under the loan cannot exceed the borrowing base as calculated per the agreement (approximately $4.0 million as of March 31, 2015). The Company will pay interest monthly on the unpaid balance at a variable rate (adjusted on a weekly basis) based upon the one-month LIBOR index rate plus 3.20%. The Company will also pay a commitment fee on the average daily unused portion of the loan at the rate of .30% per annum, payable monthly. The term of the loan will expire, and the Company must pay all unpaid principal amounts outstanding under the loan on November 1, 2019. The loan is secured by substantially all assets of the Company and subject to certain financial and nonfinancial covenants as defined in the master loan agreement. There was no outstanding balance as of March 31, 2015 and September 30, 2014.

LongTerm_Debt

Long-Term Debt	6 Months Ended
	Mar. 31, 2015
Long-term Debt, Unclassified [Abstract]
Long-Term Debt	Long-Term Debt
	The Company has a revolving term loan, with a bank, available for up to $11,000,000. The Company will pay interest on the unpaid balance at a variable interest rate (adjusted on a weekly basis) based upon the one-month LIBOR index rate plus 3.45%. The Company will also pay a commitment fee on the average daily unused portion of the loan at the rate of .50% per annum, payable monthly. The loan is secured by substantially all assets of the Company and subject to certain financial and nonfinancial covenants as defined in the master loan agreement. The term of the loan will expire, and the Company must pay all unpaid principal amounts outstanding under the revolving term loan, on November 1, 2019. There are no outstanding borrowings at March 31, 2015 and September 30, 2014.
	The Company entered into a $500,000 loan agreement with the Iowa Department of Transportation (IDOT) in February 2005.  The proceeds were disbursed upon submission of paid invoices.  Interest at 2.11% began accruing on January 1, 2007.  Principal payments will be due semiannually through January 2017.  The loan is secured by all rail track material constructed as part of the plant construction.  The debt is subordinate to the above financial institution revolving term loan and revolving credit loan (Note 4.) As of March 31, 2015, $108,567 is outstanding of which $53,714 has been classified as current.

RelatedParty_Transactions

Related-Party Transactions	6 Months Ended
	Mar. 31, 2015
Related Party Transactions [Abstract]
Related-Party Transactions	Related-Party Transactions
	The Company has recorded a settlement payable of $425,000 at March 31, 2015 to Heart of Iowa Coop (HOIC), dba Key Cooperative, a member of the Company, related to the termination of an agreement related to corn origination. Payments of $425,000 are due annually with interest at 3.25% with the final payment due on October 10, 2015.
	The Company had the following related-party activity with members during the three and six months ending March 31:
	Corn Commitment as of:
	March 31, 2015
		Corn Forward Purchase Commitment		Basis Corn Commitment Bushels	Commitment Through	Amount Due
	Key	$	1,143,601	250,000	May-15	$	47,359
	Heartland	$	258,559	425,000	May-15	$	87,332
	Mid Iowa	$	860,263	1,050,000	Jul-15	$	156,053
	Kaltenhauser	$	1,004,000	0	Feb-16	$	—
	Other	$	1,130,657	0	Dec-15	$	352,858
	Corn Purchased:
		Three Months Ended March 31, 2015		Three Months Ended March 31, 2014			Six Months Ended March 31, 2015		Six Months Ended March 31, 2014
	Key	$	3,011,156	$	2,440,393		$	7,189,807	$	6,479,250
	Heartland	$	2,814,716	$	4,752,977		$	5,852,593	$	6,377,594
	Mid Iowa	$	3,214,003	$	3,916,795		$	5,202,339	$	10,986,808
	Kaltenhauser	$	1,516,809	$	20,703		$	1,803,172	$	52,966
	Other	$	2,163,708	$	2,515,237		$	3,885,552	$	5,050,837
	In addition to the above, the Company has made miscellaneous purchases from Key amounting to $19,837 and $53,020 for the three months and six months ended March 31, 2015, respectively. There were miscellaneous purchases of $24,751 and $52,095, respectively for the three months and six months ended March 31, 2014.

Commitments_and_Major_Customer

Commitments and Major Customer	6 Months Ended
	Mar. 31, 2015
Commitments and Major Customer [Abstract]
Commitments and Major Customer	Commitments and Major Customers
	On January 1, 2013 the Company entered into an agreement with an unrelated entity for marketing, selling and distributing all of the ethanol produced by the Company. Revenues with this customer were $22,029,408 and $47,789,489, respectively, for the three and six months ended March 31, 2015. Revenues with this customer were $27,524,006 and $52,614,191, respectively, for the three and six months ended March 31, 2014. Trade accounts receivable of $2,924,773 was due from the customer as of March 31, 2015. As of March 31, 2015, the Company has ethanol unpriced sales commitments with the unrelated entity of approximately 12.2 million gallons through June 30, 2015.
	The Company entered into an agreement on January 1, 2014 with an unrelated entity for marketing, selling and distributing the distillers grains. Revenues with this customer were $6,501,539 and $10,502,583, respectively, for the three and six months ended March 31, 2015. Revenues with this customer were $2,265,063 for both the three and six months ended March 31, 2014. Trade accounts receivable of $860,405 was due from the customer as of March 31, 2015. The Company has distiller's grain sales commitments with an unrelated entity of approximately 18,500 tons for a total sales commitment of approximately $2.9 million.
	As of March 31, 2015, the Company had purchase commitments for corn forward contracts with various unrelated parties, at a corn commitment total of approximately $2.5 million. These contracts mature at various dates through October 2014. The Company also had basis contract commitments to purchase 510,150 bushels of corn. These contracts mature at various dates through May 2016.
	On February 27, 2015, the Company entered into an agreement with an unrelated entity for the purchase of enzymes. The agreement expires on February 29, 2016. The agreement is subject to a minimum purchase requirement. The estimated purchase commitment totals approximately $1.2 million.
	On April 17, 2013, the Company entered into an agreement with an unrelated party for the transportation of natural gas to the Company's ethanol plant. Under the agreement, the Company is committed to future monthly usage fees totaling approximately $3.6 million over the 10 year term, commencing November 2014. The Company also assigned a $3.1 million irrevocable standby letter of credit to the party to stand as security for the Company's obligation under the Agreement. The letter of credit will be reduced over time as the Company makes payments under the Agreement.
	On June 14, 2014, the Company entered into an agreement with an unrelated party for an oil separation process. The purchase price is approximately $2.4 million. The Company has paid approximately $1.3 million. The project is expected to be completed in April 2015.
	On November 18, 2014, the Company entered into an agreement with an unrelated party for the installation of several process flow improvements. The commitment totals approximately $3.7 million. As of March 31. 2015, approximately $2 million has been paid. The remaining balance of $1.7 million will be paid as invoiced over the course of the project. The project is expected to be completed in July 2015.

Risk_Management

Risk Management	6 Months Ended
	Mar. 31, 2015
Risk Management [Abstract]
Risk Management	Risk Management
	The Company's activities expose it to a variety of market risks, including the effects of changes in commodity prices.  These financial exposures are monitored and managed by the Company as an integral part of its overall risk management program.  The Company's risk management program focuses on the unpredictability of commodity markets and seeks to reduce the potentially adverse effects that the volatility of these markets may have on its operating results.
	The Company maintains a risk management strategy that uses derivative instruments to minimize significant, unanticipated earnings fluctuations caused by market fluctuations.  The Company's specific goal is to protect the Company from large moves in the commodity costs.
	To reduce price risk caused by market fluctuations, the Company generally follows a policy of using exchange-traded futures and options contracts to minimize its net position of merchandisable agricultural commodity inventories and forward purchases and sales contracts.  Exchange traded futures and options contracts are designated as non-hedge derivatives and are valued at market price with changes in market price recorded in operating income through cost of goods sold for corn derivatives and through revenue for ethanol derivatives. The Company treats all contracts with the same counterparty on a net basis on the balance sheet.
	Derivatives not designated as hedging instruments are as follows:
		March 31, 2015			30-Sep-14
	Derivative assets - corn contracts	348,850			$	878,463
	Derivative assets - ethanol contracts	50,400			420,709
	Derivative liabilities - corn contracts	(34,394		)	(268,394		)
	Derivative liabilities - ethanol contracts	(13,650		)	—
	Derivative liabilities - natural gas contracts	(18,000		)	—
	Cash held by broker	293,548			(543,700		)
	Total	$	626,754		$	487,078
	The effects on operating income from derivative activities is as follows:
		Three Months Ended						Six Months Ended
		March 31, 2015			March 31, 2014			March 31, 2015			March 31, 2014
	Gains (losses) in revenues due to derivatives related to ethanol sales:
	Realized gain (loss)	$	1,193,850		$	(205,483	)	$	729,078		$	(733,373	)
	Unrealized gain (loss)	(455,364		)	—			(384,447		)	—
	Total effect on revenues	738,486			(205,483		)	344,631			(733,373		)
	Gains (losses) in cost of goods sold due to derivatives related to corn costs:
	Realized gain (loss)	216,587			(544,625		)	1,298,956			(221,723		)
	Unrealized gain (loss)	189,756			460,881			(295,125		)	3,038
	Total effect on corn cost	406,343			(83,744		)	1,003,831			(218,685		)
	Gains (losses) in cost of goods sold due to derivatives related to natural gas costs:
	Realized gain (loss)	56,810			—			56,810			—
	Unrealized gain (loss)	(20,920		)	—			(20,920		)	—
	Total effect on natural gas cost	35,890			—			35,890			—
	Total effect on cost of good sold	$	442,233		$	(83,744	)	$	1,039,721		$	(218,685	)
	Total gain (loss) due to derivative activities	$	1,180,719		$	(289,227	)	$	1,384,352		$	(952,058	)
	Unrealized gains and losses on forward contracts, in which delivery has not occurred, are deemed “normal purchases and normal sales”, and therefore are not marked to market in the Company's financial statements but are subject to a lower of cost or market assessment.

Fair_Value_Measurements

Fair Value Measurements	6 Months Ended
	Mar. 31, 2015
Fair Value Measurements [Abstract]
Fair Value Measurements	Fair Value Measurements
	Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.  In determining fair value, the Company uses various methods including market, income and cost approaches.  Based on these approaches, the Company often utilizes certain assumptions that market participants would use in pricing the asset or liability, including assumptions about risk and/or the risks inherent in the inputs to the valuation technique.  These inputs can be readily observable, market-corroborated, or generally unobservable inputs.  The Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs.  Based on the observability of the inputs used in the valuation techniques, the Company is required to provide the following information according to the fair value hierarchy.  The fair value hierarchy ranks the quality and reliability of the information used to determine fair values.  Financial assets and liabilities carried at fair value will be classified and disclosed in one of the following three categories:
	Level 1 -	Valuations for assets and liabilities traded in active markets from readily available pricing sources for market transactions involving identical assets or liabilities.
	Level 2 -	Valuations for assets and liabilities traded in less active dealer or broker markets. Valuations are obtained from third-party pricing services for identical or similar assets or liabilities.
	Level 3 -	Valuations incorporate certain assumptions and projections in determining the fair value assigned to such assets or liabilities.
	A description of the valuation methodologies used for instruments measured at fair value, including the general classification of such instruments pursuant to the valuation hierarchy, is set forth below.  These valuation methodologies were applied to all of the Company's financial assets and financial liabilities carried at fair value.
	Derivative financial instruments:  Commodity futures and exchange-traded commodity options contracts are reported at fair value utilizing Level 1 inputs.  For these contracts, the Company obtains 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 CME and NYMEX markets.  The fair value measurements consider observable data that may include dealer quotes and live trading levels from the over-the-counter markets.
	The following table summarizes the financial assets and liabilities measured at fair value on a recurring basis as of March 31, 2015 and September 30, 2014, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value:
			March 31, 2015
			Total		Level 1		Level 2		Level 3
	Assets, derivative financial instruments		$	399,250	$	399,250	$	—	$	—
	Liabilities, derivative financial instruments		$	66,044	$	66,044	—		—
			30-Sep-14
			Total		Level 1		Level 2		Level 3
	Assets, derivative financial instruments		$	1,299,172	$	1,299,172	$	—	$	—
	Liabilities, derivative financial instruments		$	268,394	$	268,394	—		—

Contingency

Contingency	6 Months Ended
	Mar. 31, 2015
Contingency [Abstract]
Contingency	Contingency
	In May 2010, a lawsuit was filed against the Company and approximately twenty other ethanol plants, design firms and equipment manufacturers by an unrelated party claiming the Company’s operation of the corn oil extraction system is infringing at least one patent and that all parties have engaged in willful infringement. The plaintiff seeks injunctive relief, an award of damages with interest and any other remedies available under certain patent statutes or otherwise under law.  The Company is currently defending the lawsuit with legal counsel and has asserted various defenses including that it does not infringe; that the patents are invalid; and/or that the patents are unenforceable.  The court issued a ruling in November 2014 which was favorable to the Company, however various matters remain outstanding and the plaintiff has indicated its intent to appeal. The Company is unable at this time to estimate the ultimate outcome or determine if the lawsuit will have a material adverse affect on the Company.

Revenue_Tables

Revenue (Tables)	6 Months Ended
	Mar. 31, 2015
Revenue by product [Abstract]
Revenue from External Customers by Products and Services	Components of revenues are as follows:
		Three Months Ended				Six Months Ended
		March 31, 2015		March 31, 2014		March 31, 2015		March 31, 2014
	Ethanol, net of hedging gain (loss)	$	22,767,894	$	27,318,521	$	48,134,120	$	51,880,817
	Distillers Grains	6,501,539		8,501,041		10,502,583		17,844,526
	Other	898,591		674,439		1,552,284		1,523,794
	Total	$	30,168,024	$	36,494,001	$	60,188,987	$	71,249,137

Inventories_Tables

Inventories (Tables)	6 Months Ended
	Mar. 31, 2015
Inventory Disclosure [Abstract]
Schedule of Inventory, Current	Inventories consist of the following as of:
		March 31,		September 30,
		2015		2014
	Raw materials, including corn, chemicals and supplies	$	2,575,658	$	2,525,462
	Work in process	689,567		770,759
	Ethanol and distillers grains	573,968		1,441,885
	Total	$	3,839,193	$	4,738,106

Risk_Management_Tables

Risk Management (Tables)	6 Months Ended
	Mar. 31, 2015
Risk Management [Abstract]
Schedule of Other Derivatives Not Designated as Hedging Instruments, Statements of Financial Performance and Financial Position, Location	Derivatives not designated as hedging instruments are as follows:
		March 31, 2015			30-Sep-14
	Derivative assets - corn contracts	348,850			$	878,463
	Derivative assets - ethanol contracts	50,400			420,709
	Derivative liabilities - corn contracts	(34,394		)	(268,394		)
	Derivative liabilities - ethanol contracts	(13,650		)	—
	Derivative liabilities - natural gas contracts	(18,000		)	—
	Cash held by broker	293,548			(543,700		)
	Total	$	626,754		$	487,078
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance	The effects on operating income from derivative activities is as follows:
		Three Months Ended						Six Months Ended
		March 31, 2015			March 31, 2014			March 31, 2015			March 31, 2014
	Gains (losses) in revenues due to derivatives related to ethanol sales:
	Realized gain (loss)	$	1,193,850		$	(205,483	)	$	729,078		$	(733,373	)
	Unrealized gain (loss)	(455,364		)	—			(384,447		)	—
	Total effect on revenues	738,486			(205,483		)	344,631			(733,373		)
	Gains (losses) in cost of goods sold due to derivatives related to corn costs:
	Realized gain (loss)	216,587			(544,625		)	1,298,956			(221,723		)
	Unrealized gain (loss)	189,756			460,881			(295,125		)	3,038
	Total effect on corn cost	406,343			(83,744		)	1,003,831			(218,685		)
	Gains (losses) in cost of goods sold due to derivatives related to natural gas costs:
	Realized gain (loss)	56,810			—			56,810			—
	Unrealized gain (loss)	(20,920		)	—			(20,920		)	—
	Total effect on natural gas cost	35,890			—			35,890			—
	Total effect on cost of good sold	$	442,233		$	(83,744	)	$	1,039,721		$	(218,685	)
	Total gain (loss) due to derivative activities	$	1,180,719		$	(289,227	)	$	1,384,352		$	(952,058	)

Fair_Value_Measurements_Tables

Fair Value Measurements (Tables)	6 Months Ended
	Mar. 31, 2015
Fair Value Measurements [Abstract]
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block]	The following table summarizes the financial assets and liabilities measured at fair value on a recurring basis as of March 31, 2015 and September 30, 2014, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value:
		March 31, 2015
		Total		Level 1		Level 2		Level 3
	Assets, derivative financial instruments	$	399,250	$	399,250	$	—	$	—
	Liabilities, derivative financial instruments	$	66,044	$	66,044	—		—
		30-Sep-14
		Total		Level 1		Level 2		Level 3
	Assets, derivative financial instruments	$	1,299,172	$	1,299,172	$	—	$	—
	Liabilities, derivative financial instruments	$	268,394	$	268,394	—		—

Summary_of_Significant_Account1

Summary of Significant Accounting Policies (Details) (USD $)	6 Months Ended
	Mar. 31, 2015	Sep. 30, 2014
Summary of Significant Accounting Policies [Abstract]
Cash Equivalents, at Carrying Value	$4,722,319	$22,948,115
Allowance for Doubtful Accounts Receivable	$0	$0
Deferred Revenue Agreement Period	10 years
Asset Collateral Value of Debt Instrument	100.00%

Revenue_Details

Revenue (Details) (USD $)	3 Months Ended		6 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Mar. 31, 2015	Mar. 31, 2014
Revenue from External Customer [Line Items]
Revenues (Notes 2 and 7)	$30,168,024	$36,494,001	$60,188,987	$71,249,137
Ethanol [Member]
Revenue from External Customer [Line Items]
Revenues (Notes 2 and 7)	22,767,894	27,318,521	48,134,120	51,880,817
Distillers' Grains [Member]
Revenue from External Customer [Line Items]
Revenues (Notes 2 and 7)	6,501,539	8,501,041	10,502,583	17,844,526
Other [Member]
Revenue from External Customer [Line Items]
Revenues (Notes 2 and 7)	$898,591	$674,439	$1,552,284	$1,523,794

Inventories_Details

Inventories (Details) (USD $)	Mar. 31, 2015	Sep. 30, 2014	Jun. 30, 2014	Sep. 30, 2013
Inventory Disclosure [Abstract]
Raw materials, including corn, chemicals and supplies	$2,575,658	$2,525,462
Work in process	689,567	770,759
Ethanol and distillers grains	573,968	1,441,885
Total	$3,839,193	$4,738,106	$3,839,193	$4,738,106

Revolving_Credit_Loan_Details

Revolving Credit Loan (Details) (USD $)	6 Months Ended
	Mar. 31, 2015	Sep. 30, 2014
Line of Credit Facility [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity	$11,000,000
Debt instrument, description of variable rate basis	LIBOR
Debt instrument, basis spread on variable rate	3.45%
Line of credit facility, unused capacity, commitment fee percentage	0.50%
Revolving Credit Facility [Member]
Line of Credit Facility [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity	8,500,000
Line of Credit Facility, Remaining Borrowing Capacity	4,000,000
Debt instrument, description of variable rate basis	LIBOR
Debt instrument, basis spread on variable rate	3.20%
Line of credit facility, unused capacity, commitment fee percentage	0.30%
Revolving credit loan	$0	$0

LongTerm_Debt_Details

Long-Term Debt (Details) (USD $)	6 Months Ended
	Mar. 31, 2015	Sep. 30, 2014	Jun. 30, 2014
Debt Instrument [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity	$11,000,000
Less current maturities	-53,714	-53,153
Debt Instrument, Description of Variable Rate Basis	LIBOR
Debt instrument, basis spread on variable rate	3.45%
Line of credit facility, unused capacity, commitment fee percentage	0.50%
Iowa Department of Transportation [Member]
Debt Instrument [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity			500,000
Less current maturities	-53,714
Debt instrument, interest rate, stated percentage			2.11%
Long-term Debt	108,567
Line of Credit Facility, Fair Value of Amount Outstanding	$108,567

RelatedParty_Transactions_Deta

Related-Party Transactions (Details) (USD $)	3 Months Ended		6 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Mar. 31, 2015	Mar. 31, 2014
Related Party Transaction [Line Items]
Settlement fee payable, related party			$0	($425,000)
Interest paid			1,425	33,056
Key Coop [Member]
Related Party Transaction [Line Items]
Settlement fee payable, related party			425,000
Payments for legal settlements			425,000
Related party settlement fee, interest rate	3.25%		3.25%
Other Purchases, Related Party	19,837	24,751	53,020	52,095
Pipelines [Member]
Related Party Transaction [Line Items]
Related party settlement fee, payment period, years			10 years
Corn [Member]
Related Party Transaction [Line Items]
Supplies Purchased, Materials for Production	2,163,708	2,515,237	3,885,552	5,050,837
Purchase Commitment, Minimum Amount Committed, Forward Contracts	1,130,657		1,130,657
Supply Commitment, quantity, unpriced contracts	0		0
Purchase Commitment, Remaining Minimum Amount Committed	352,858		352,858
Corn [Member] | Key Coop [Member]
Related Party Transaction [Line Items]
Supplies Purchased, Materials for Production	3,011,156	2,440,393	7,189,807	6,479,250
Purchase Commitment, Minimum Amount Committed, Forward Contracts	1,143,601		1,143,601
Supply Commitment, quantity, unpriced contracts	250,000		250,000
Purchase Commitment, Remaining Minimum Amount Committed	47,359		47,359
Corn [Member] | Heartland [Member]
Related Party Transaction [Line Items]
Supplies Purchased, Materials for Production	2,814,716	4,752,977	5,852,593	6,377,594
Purchase Commitment, Minimum Amount Committed, Forward Contracts	258,559		258,559
Supply Commitment, quantity, unpriced contracts	425,000		425,000
Purchase Commitment, Remaining Minimum Amount Committed	87,332		87,332
Corn [Member] | Mid Iowa Cooperative [Member]
Related Party Transaction [Line Items]
Supplies Purchased, Materials for Production	3,214,003	3,916,795	5,202,339	10,986,808
Purchase Commitment, Minimum Amount Committed, Forward Contracts	860,263		860,263
Supply Commitment, quantity, unpriced contracts	1,050,000		1,050,000
Purchase Commitment, Remaining Minimum Amount Committed	156,053		156,053
Corn [Member] | Kaltenhauser [Member]
Related Party Transaction [Line Items]
Supplies Purchased, Materials for Production	1,516,809	20,703	1,803,172	52,966
Purchase Commitment, Minimum Amount Committed, Forward Contracts	1,004,000		1,004,000
Supply Commitment, quantity, unpriced contracts	0		0
Purchase Commitment, Remaining Minimum Amount Committed	$0		$0

Commitments_and_Major_Customer1

Commitments and Major Customer (Details) (USD $)	3 Months Ended		6 Months Ended		3 Months Ended	9 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Mar. 31, 2015	Mar. 31, 2014	Jun. 30, 2014	Jun. 30, 2014
Revenue, Major Customer [Line Items]
Revenues (Notes 2 and 7)	$30,168,024	$36,494,001	$60,188,987	$71,249,137
Ethanol [Member]
Revenue, Major Customer [Line Items]
Ethanol receivable	2,924,773		2,924,773
Supply Commitment, quantity, unpriced contracts	12,200,000		12,200,000
Entity-wide, major customer, unrelated party, amount	22,029,408	27,524,006	47,789,489	52,614,191
Distillers' Grains [Member]
Revenue, Major Customer [Line Items]
Supply Commitment, Remaining Minimum Amount Committed	2,900,000		2,900,000
Entity-wide, major customer, unrelated party, amount	6,501,539		10,502,583	2,265,063	2,265,063
Distillers grains receivable					860,405	860,405
Supply Commitment, quantity, Priced Contracts	18,500		18,500
Corn [Member]
Revenue, Major Customer [Line Items]
Supply Commitment, quantity, unpriced contracts	0		0
Long-term Purchase Commitment, Amount			2,500,000
Pipelines [Member]
Revenue, Major Customer [Line Items]
Property, Plant and Equipment, Additions, Term of Contract			10 years
Oil Separation System [Member]
Revenue, Major Customer [Line Items]
Property, Plant and Equipment, Additions, Term of Contract						2,400,000
Property, Plant, and Equipment. Additions, New Construction, Principal Paid			1,300,000
Financial Standby Letter of Credit [Member]
Revenue, Major Customer [Line Items]
Guarantor Obligations, Current Carrying Value	$3,100,000		$3,100,000

Commitments_and_Major_Customer2

Commitments and Major Customer Purchase committments (Details) (USD $)	6 Months Ended	9 Months Ended
In Millions, unless otherwise specified	Mar. 31, 2015	Jun. 30, 2014
Corn [Member]
Long-term Purchase Commitment [Line Items]
Long-term Purchase Commitment, Amount	$2.50
Long-term Purchase Commitment, Minimum Mass Required	510,150
Enzymes [Member]
Long-term Purchase Commitment [Line Items]
Long-term Purchase Commitment, Amount	1.2
Natural Gas [Member]
Long-term Purchase Commitment [Line Items]
Payments for Fees	3.6
Process Flow Improvements [Member]
Long-term Purchase Commitment [Line Items]
Short term purchase commitments, minimum dollar required	3.7
Property, Plant, and Equipment. Additions, New Construction, Principal Paid	2
Property, Plant, and Equipment, Additions, New Construction, Remaining Principal Balance	1.7
Pipelines [Member]
Long-term Purchase Commitment [Line Items]
Property, Plant and Equipment, Additions, Term of Contract	10 years
Oil Separation System [Member]
Long-term Purchase Commitment [Line Items]
Short term purchase commitments, minimum dollar required		2.4
Property, Plant, and Equipment. Additions, New Construction, Principal Paid	1.3
Financial Standby Letter of Credit [Member]
Long-term Purchase Commitment [Line Items]
Guarantor Obligations, Current Carrying Value	$3.10

Risk_Management_Details

Risk Management (Details) (USD $)	3 Months Ended		6 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Mar. 31, 2015	Mar. 31, 2014	Sep. 30, 2014
Trading Activity, Gains and Losses, Net [Line Items]
Cash held by broker	$293,548		$293,548		($543,700)
Trading Activity, Gains and Losses, Net	1,180,719	-289,227	1,384,352	-952,058
Cost of Goods, Total [Member]
Trading Activity, Gains and Losses, Net [Line Items]
Trading Activity, Gains and Losses, Net	442,233	-83,744	1,039,721	-218,685
Corn [Member]
Trading Activity, Gains and Losses, Net [Line Items]
Derivative assets - corn contracts	348,850		348,850		878,463
Derivative liabilities - corn contracts	-34,394		-34,394		-268,394
Corn [Member] | Cost of Goods, Total [Member]
Trading Activity, Gains and Losses, Net [Line Items]
Gain (Loss) on Sale of Derivatives	216,587	-544,625	1,298,956	-221,723
Unrealized Gain (Loss) on Derivatives	189,756	460,881	-295,125	3,038
Trading Activity, Gains and Losses, Net	406,343	-83,744	1,003,831	-218,685
Ethanol [Member]
Trading Activity, Gains and Losses, Net [Line Items]
Derivative assets - corn contracts	50,400		50,400		420,709
Derivative liabilities - corn contracts	-13,650		-13,650		0
Ethanol [Member] | Sales [Member]
Trading Activity, Gains and Losses, Net [Line Items]
Gain (Loss) on Sale of Derivatives	1,193,850	-205,483	729,078	-733,373
Unrealized Gain (Loss) on Derivatives	-455,364	0	-384,447	0
Trading Activity, Gains and Losses, Net	738,486	-205,483	344,631	-733,373
Natural Gas [Member]
Trading Activity, Gains and Losses, Net [Line Items]
Derivative liabilities - corn contracts	-18,000		-18,000		0
Natural Gas [Member] | Cost of Goods, Total [Member]
Trading Activity, Gains and Losses, Net [Line Items]
Gain (Loss) on Sale of Derivatives	56,810	0	56,810	0
Unrealized Gain (Loss) on Derivatives	-20,920	0	-20,920	0
Trading Activity, Gains and Losses, Net	$35,890	$0	$35,890	$0

Fair_Value_Measurements_Detail

Fair Value Measurements (Details) (Fair Value, Measurements, Recurring [Member], USD $)	Mar. 31, 2015	Sep. 30, 2014
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Assets, derivative financial instruments	$399,250	$1,299,172
Assets, derivative financial instruments	-66,044	-268,394
Fair Value, Inputs, Level 1 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Assets, derivative financial instruments	399,250	1,299,172
Assets, derivative financial instruments	-66,044	-268,394
Fair Value, Inputs, Level 2 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Assets, derivative financial instruments	0	0
Assets, derivative financial instruments	0	0
Fair Value, Inputs, Level 3 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Assets, derivative financial instruments	0	0
Assets, derivative financial instruments	$0	$0