Lincolnway Energy 10-Q 13 Aug 14 2014 Q3 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	9 Months Ended
	Jun. 30, 2014	Aug. 01, 2014
Document and Entity Information [Abstract]	'	'
Entity Registrant Name	'Lincolnway Energy, LLC	'
Entity Central Index Key	'0001350420	'
Current Fiscal Year End Date	'--09-30	'
Entity Filer Category	'Non-accelerated Filer	'
Document Type	'10-Q	'
Document Period End Date	30-Jun-14	'
Document Fiscal Year Focus	'2014	'
Document Fiscal Period Focus	'Q3	'
Amendment Flag	'false	'
Entity Common Stock, Shares Outstanding	42,049	42,049

Balance_Sheets_Statement

Balance Sheets Statement (USD $)	Jun. 30, 2014	Sep. 30, 2013
CURRENT ASSETS	'	'
Cash and cash equivalents	$14,025,319	$1,936,800
Derivative financial instruments (Note 8 and 9)	1,516,117	431,476
Trade and other accounts receivable (Note 7)	4,629,719	5,300,204
Inventories (Note 3)	5,535,616	5,342,199
Prepaid expenses and other	407,821	325,880
Total current assets	26,114,592	13,336,559
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	81,269,501	79,559,692
Office furniture and equipment	408,572	409,730
Construction in progress	5,062,950	1,185,662
Property, plant and equipment, gross	95,310,859	89,724,920
Accumulated depreciation	-64,229,458	-58,859,269
Property, plant and equipment, net	31,081,401	30,865,651
OTHER ASSETS	'	'
Restricted cash	351,000	351,000
Financing costs, net of amortization of $366,754 and $340,453	105,207	131,508
Deposit	0	117,910
Investments	199,184	196,102
Other assets, noncurrent	655,391	796,520
Assets	57,851,384	44,998,730
CURRENT LIABILITIES	'	'
Accounts payable	3,331,525	2,313,615
Accounts payable, related party (Note 6)	437,151	554,478
Current maturities of long-term debt (Note 5)	26,437	52,049
Current settlement payable, related party (Note 6)	425,000	425,000
Accrued expenses	1,694,097	999,460
Total current liabilities	5,914,210	4,344,602
NONCURRENT LIABILITIES	'	'
Long-term debt, less current maturities (Note 5)	108,567	135,004
Settlement payable, net of current amount, related party (Note 6)	425,000	850,000
Deferred revenue	933,333	1,000,000
Other	450,000	450,000
Total noncurrent liabilities	1,916,900	2,435,004
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 (deficit)	11,030,169	-770,981
Members' Equity	50,020,274	38,219,124
Liabilities and Equity	$57,851,384	$44,998,730

Balance_Sheets_Parenthetical_S

Balance Sheets Parenthetical Statement (USD $)	9 Months Ended	12 Months Ended
	Jun. 30, 2014	Sep. 30, 2013
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		9 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Revenues (Notes 2 and 7)	$38,991,719	$40,894,385	$110,240,856	$135,781,429
Cost of goods sold	30,197,217	42,111,656	95,772,846	140,784,344
Gross profit (loss)	8,794,502	-1,217,271	14,468,010	-5,002,915
General and administrative expenses	988,111	751,843	2,639,235	2,418,085
Operating income (loss)	7,806,391	-1,969,114	11,828,775	-7,421,000
Other income (expense):	'	'	'	'
Interest income	5,644	1,097	11,095	2,985
Interest expense	-16,509	-41,158	-38,720	-130,332
Other income (expense)	-10,865	-40,061	-27,625	-127,347
Net income (loss)	$7,795,526	($2,009,175)	$11,801,150	($7,548,347)
Weighted average units outstanding	42,049	42,049	42,049	42,049
Net income (loss) per unit - basic and diluted	$185.39	($47.78)	$280.65	($179.51)

Statement_of_Cash_Flows_Statem

Statement of Cash Flows Statement (USD $)	9 Months Ended
	Jun. 30, 2014	Jun. 30, 2013
SUPPLEMENTAL DISCLOSURES OF NONCASH INVESTING AND FINANCING ACTIVITIES	'	'
Construction in progress included in accrued expenses	$2,621	$0
Construction in progress included in accounts payable	1,102,324	0
SUPPLEMENTAL DISCLOSURE OF CASH FLOW	'	'
INFORMATION, cash paid for interest	34,756	107,585
CASH AND CASH EQUIVALENTS	'	'
Beginning	1,936,800	151,824
Ending	14,025,319	2,972,875
CASH FLOWS FROM FINANCING ACTIVITIES	'	'
Proceeds from Short-term Debt	0	1,350,000
Proceeds from long-term borrowings	0	1,700,000
Payments on long-term borrowings	-52,049	-4,987,968
Net cash provided by (used in) financing activities	-52,049	-1,937,968
Net increase in cash and cash equivalents	12,088,519	2,821,051
CASH FLOWS FROM INVESTING ACTIVITIES	'	'
Purchase of property and equipment	-4,657,834	-151,266
Proceeds from Sale of Property, Plant, and Equipment	80,000	0
Payments to Acquire Investments	-3,082	-5,614
Net cash (used in) investing activities	-4,580,916	-156,880
Adjustments to reconcile net income (loss) to net cash provided by operating activities:	'	'
Depreciation and amortization	5,563,697	5,853,993
Gain (Loss) on Disposition of Property Plant Equipment	-70,367	0
Changes in working capital components:	'	'
Derivative financial instruments	-1,084,641	-195,217
Trade and other accounts receivable	670,485	3,888,212
Inventories	-193,417	1,172,815
Prepaid expenses and other	-81,941	-56,535
Increase (decrease) deposits	117,910	180,440
Accounts payable	-84,414	810,977
Accounts payable, related party	-117,327	-17,166
Settlement fee payable, related party	-425,000	-425,000
Deferred revenue	0	1,000,000
Accrued expenses	625,349	251,727
Net cash provided by operating activities	16,721,484	4,915,899
CASH FLOWS FROM OPERATING ACTIVITIES	'	'
Net income (loss)	$11,801,150	($7,548,347)

Nature_of_Business_and_Signifi

Nature of Business and Significant Accounting Policies (USD $)	9 Months Ended
	Jun. 30, 2014	Sep. 30, 2013
	gal
	D
Nature of Business and Significant Accounting Policies [Abstract]	'	'
Nature of Business and Significant Accounting Policies	'	'
	Nature of Business and Significant Accounting Policies
	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.
	Basis of presentation and other information: The balance sheet as of September 30, 2013 was derived from the Company's audited balance sheet as of that date.  The accompanying financial statements as of June 30, 2014 and for the three and nine months ended June 30, 2014 and 2013 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, 2013 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:  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.
	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 June 30, 2014 and September 30, 2013.
	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: 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 term of the contract. Deferred revenue is allocated between current and long term portions. The current portion of deferred revenue is included in accrued expenses on the balance sheet.
	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.
	Net income (loss) 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. There were no diluted units for the periods covered.
	Fair value of financial instruments:  The carrying amounts of cash and cash equivalents, derivative financial instruments, trade and other accounts receivable, accounts payable and accrued expenses approximate fair value.  The carrying amount of long-term debt approximates fair value because the interest rates fluctuate with market rates or the fixed rates approximate current rates offered to the Company for debt with similar terms and maturities.
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.
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.
Basis of Accounting, Policy [Policy Text Block]	'	'
	Basis of presentation and other information: The balance sheet as of September 30, 2013 was derived from the Company's audited balance sheet as of that date.  The accompanying financial statements as of June 30, 2014 and for the three and nine months ended June 30, 2014 and 2013 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, 2013 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.
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.
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 term of the contract.
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]	'	'
	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.
Fair Value of Financial Instruments, Policy [Policy Text Block]	'	'
	Fair value of financial instruments:  The carrying amounts of cash and cash equivalents, derivative financial instruments, trade and other accounts receivable, accounts payable and accrued expenses approximate fair value.  The carrying amount of long-term debt approximates fair value because the interest rates fluctuate with market rates or the fixed rates approximate current rates offered to the Company for debt with similar terms and maturities.
Allowance for Doubtful Accounts Receivable	$0	$0
Annual ethanol production	50,000,000	'
Number of days outstanding for a past due trade receivables	90	'

Revenue

Revenue	9 Months Ended
	Jun. 30, 2014
Revenue by product [Abstract]	'
Revenue	'
	Revenue
	Components of revenue are as follows:
		Three Months Ended				Nine Months Ended
		June 30, 2014		June 30, 2013		June 30, 2014		June 30, 2013
	Ethanol	$	31,119,465	$	30,669,126	$	83,000,282	$	98,809,452
	Distillers Grains	6,958,254		9,373,499		24,802,780		34,171,509
	Other	914,000		851,760		2,437,794		2,800,468
	Total	$	38,991,719	$	40,894,385	$	110,240,856	$	135,781,429

Inventories

Inventories	9 Months Ended
	Jun. 30, 2014
Inventory Disclosure [Abstract]	'
Inventories	'
	Inventories
	Inventories consist of the following as of:
		June 30,		September 30,
		2014		2013
	Raw materials, including corn, coal, chemicals and supplies	$	3,209,805	$	2,737,470
	Work in process	929,105		1,063,759
	Ethanol and distillers grains	1,396,706		1,540,970
	Total	$	5,535,616	$	5,342,199

Revolving_Credit_Loan

Revolving Credit Loan	9 Months Ended
	Jun. 30, 2014
Revolving Credit Loan [Abstract]	'
Revolving Credit Loan	'
	Revolving Credit Loan and Subsequent Event
	The Company entered into a master loan agreement with a financial institution on August 21, 2012 and this agreement along with the following supplement was amended on April 17, 2013. One of the supplements of the agreement is a monitored revolving credit loan 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 $6,300,000 as of June 30, 2014). 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 3.75%. 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 July 1, 2014. 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 June 30, 2014 and September 30, 2013.
	Subsequent to June 30, 2014, the Company amended and restated the revolving credit supplement with the financial institution. 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 term of the loan will expire, and the Company must pay all unpaid principal amounts outstanding under the loan on July 1, 2015.

LongTerm_Debt

Long-Term Debt	9 Months Ended
	Jun. 30, 2014
Long-term Debt, Unclassified [Abstract]	'
Long-Term Debt	'
	Long-Term Debt and Subsequent Event
	Long-term debt consists of the following as of:
		June 30,			September 30,
		2014			2013
	Revolving term loan. (A)	$	—		$	—
	Note payable to Iowa Department of Transportation. (B)	135,004			187,053
		135,004			187,053
	Less current maturities	(26,437		)	(52,049		)
		$	108,567		$	135,004
	(A)	The Company entered into a master loan agreement with a financial institution on August 21, 2012 and this agreement along with the following supplement was amended on April 17, 2013. One of the supplements of the agreement is a revolving term loan 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 4.00%. The Company will also pay a commitment fee on the average daily unused portion of the loan at the rate of .60% 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.
	Subsequent to June 30, 2014, the Company amended and restated the revolving term loan supplement with the financial institution. 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.
	(B)	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 July 2016.  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 (A) and revolving credit loan (Note 4.)

RelatedParty_Transactions

Related-Party Transactions	9 Months Ended
	Jun. 30, 2014
Related Party Transactions [Abstract]	'
Related-Party Transactions	'
	Related-Party Transactions
	The Company entered into an agreement on January 24, 2006 with the Heart of Iowa Coop (HOIC), dba Key Cooperative, a member of the Company, to provide 100% of the requirement of corn for use in the operation of the ethanol plant.  The agreement could be terminated before the end of the term by providing six months' notice of termination and paying the other party $2,000,000, reduced by $50,000 for each completed year of the agreement.
	On April 10, 2012, the Company delivered notice to Key to terminate the Amended and Restated Grain Handling Agreement it held with Key. The termination of the agreement was six months from the date of notice, October 10, 2012. The Company recorded a termination cost of $1,700,000 as required under the agreement, which was expensed for the quarter ending June 30, 2012. Payments of $425,000 will be made annually over a 4 year period with interest at 3.25%, due on October 10 of each year. As of June 30, 2014, $850,000 in principal payments have been made to Key with $850,000 remaining.
	On January 10, 2013, the Company began originating its own corn purchasing.
	The Company purchased corn from Key totaling $3,349,766 and $9,829,017 for the three and nine months ended June 30, 2014, respectively.  There were corn purchases of $10,084,927 and $73,106,359 for the three and nine months ended June 30, 2013.
	As of June 30, 2014, the Company has several corn cash forward contracts with Key that will be delivered in July 2014. The corn commitment is for 758,142 bushels and totals $3,429,384. The Company has made miscellaneous purchases from Key amounting to $53,112 and $105,207 for the three and nine months ended June 30, 2014, respectively. There were miscellaneous purchases of $13,140 and $54,790, respectively for the three and nine months ended June 30, 2013. As of June 30, 2014 the amount due to Key is $262,186.
	For the three and nine months ended June 30, 2014, the Company purchased corn totaling $6,492,536 and $12,870,130 from Heartland Co-op, a member of the Company. For both the three and nine months ended June 30, 2013, the Company purchased corn totaling $875,929 and $4,490,644 from Heartland Coop, respectively. The Company has a corn cash forward contract with Heartland Co-op that will be delivered in September 2014. The corn commitment is for 492,588 bushels and totals $2,152,997. The Company also has a corn basis forward contracts that will mature through May 2014 and total 10,000 bushels. As of June 30, 2014 the amount due to Heartland Co-op is $0.
	For the three and nine months ended June 30, 2014, the Company purchased corn totaling $2,887,476 and $13,874,284 from Mid Iowa Cooperative, a member of the Company. For both the three and nine months ended June 30, 2013, the Company made corn purchases for $3,897,395 and $5,492,158, respectively. The Company has a corn cash forward contract with Mid-Iowa that will be delivered in July 2014 for 20,789 bushels and a commitment of $107,061. As of June 30, 2014 the amount due to Mid Iowa Cooperative is $15,448.
	The Company purchased corn from other members totaling $2,049,447 and $7,153,250, respectively, for the three and nine months ended June 30, 2014. For both the three and nine months ended June 30, 2013, the Company purchased corn from several other members totaling $1,630,954 and $2,111,495, respectively. As of June 30, 2014, the Company entered into several corn cash forward contracts with several members representing 317,102 bushels and a corn commitment of $1,352,152. These contracts mature at various dates through February 2015. As of June 30, 2014 the amount due to other members is $159,517.

Commitments_and_Major_Customer

Commitments and Major Customer	9 Months Ended
	Jun. 30, 2014
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 $31,161,822 and $83,776,013, respectively, for the three and nine months ended June 30, 2014. Revenues with this customer were $30,669,126 and $64,796,472, respectively, for the three and nine months ended June 30, 2013. Trade accounts receivable of $3,502,559 was due from the customer as of June 30, 2014.
	The Company previously had an agreement with an unrelated entity for marketing, selling and distributing all of the ethanol produced by the Company. This agreement ended December 31, 2012. There were no revenues with this customer for both the three and nine months ended June 30, 2014. Revenues with this customer were none and $34,012,975, for the three and nine months ended June 30, 2013. There was no trade accounts receivable due from the customer as of June 30, 2014.
	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 $6,958,254 and $9,223,317, respectively, for the three and nine months ended June 30, 2014, There were no revenues with this customer for the three and nine months ended June 30, 2013. Trade accounts receivable of $729,381 was due from the customer as of June 30, 2014.
	The Company previously had an agreement with an unrelated entity for marketing, selling and distributing the distillers grains. This agreement ended December 31, 2013. Revenues with this customer were $0 and $15,579,463, respectively for the three and nine months ended June 30, 2014. Revenues with this customer were $9,373,499 and $34,171,509, respectively for the three and nine months ended June 30, 2013.
	The Company entered into an agreement on January 1, 2013 with an unrelated party to provide the coal supply for the ethanol plant. The agreement expires on January 1, 2015. The agreement is subject to a minimum purchase requirement. For the calendar year 2014 the estimated purchase commitment totals $2.7 million.
	As of June 30, 2014, the Company had purchase commitments for corn forward contracts with various unrelated parties, at a corn commitment total of approximately $4.67 million. These contracts mature at various dates through October 2014.
	On April 17, 2013, the Company entered into a Main Extension and Gas Transportation Agreement with an unrelated party. The agreement is part of the Company's long-term plan to convert the energy source for its ethanol plant from coal to natural gas. The unrelated party will construct and own a pipeline that will be utilized to transport natural gas to the Company's ethanol plant. The total estimated cost of the construction of the gas pipeline to the Company is $3.6 million. The Company will pay that amount to the unrelated party through a monthly fee that is payable over a 10 year term of the Agreement. Completion of the pipeline is estimated to be the first quarter of calendar year 2015.
	The Company also assigned a $3.1 million irrevocable standby letter of credit to the unrelated party discussed in the previous paragraph 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 its payments under the Main Extension and Gas Transportation Agreement.
	On December 19, 2013, the Company signed an agreement with ICM, Inc. for the procurement and installation of a package boiler and Regenerative Thermal Oxidizer (RTO) at the Company's ethanol facility. The purchase price is approximately $7 million. Approximately $4 million has been paid. The remaining balance of approximately $3 million will be paid as invoiced over the course of the completion of the project. October 2014 is the estimated completion date for the project.
	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 $10,000 and there is approximately $983,000 included in Accounts Payable. The project is expected to be completed in February 2015.

Risk_Management

Risk Management	9 Months Ended
	Jun. 30, 2014
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:
		June 30, 2014			30-Sep-13
	Derivative assets - primarily corn contracts	$	1,052,214		$	193,060
	Derivative liabilities - corn contracts	(159,721		)	(394,699		)
	Cash held by broker	623,624			633,115
	Total	$	1,516,117		$	431,476
	The effects on operating income from derivative activities is as follows:
		Three Months Ended						Nine Months Ended
		June 30, 2014			June 30, 2013			June 30, 2014			June 30, 2013
	Decrease in revenue due to derivatives related to ethanol sales:
	Realized gain (loss)	$	(27,300	)	$	—		$	(760,673	)	$	—
	Unrealized gain (loss)	(15,057		)	—			(15,057		)	—
	Total effect on revenue	(42,357		)	—			(775,730		)	—
	(Increase) decrease in cost of goods sold due to derivatives related to corn costs:
	Realized gain (loss)	380,099			(858,225		)	158,376			132,491
	Unrealized gain (loss)	904,512			502,613			907,550			79,750
	Total effect on cost of goods sold	1,284,611			(355,612		)	1,065,926			212,241
	Total gain (loss) due to derivative activities	$	1,242,254		$	(355,612	)	$	290,196		$	212,241
	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	9 Months Ended
	Jun. 30, 2014
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 June 30, 2014 and September 30, 2013, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value:
			June 30, 2014
			Total		Level 1		Level 2		Level 3
	Assets, derivative financial instruments		$	1,052,214	$	1,052,214	$	—	$	—
	Liabilities, derivative financial instruments		159,721		159,721		—		—
			30-Sep-13
			Total		Level 1		Level 2		Level 3
	Assets, derivative financial instruments		$	193,060	$	193,060	$	—	$	—
	Liabilities, derivative financial instruments		394,699		394,699		—		—

Contingency

Contingency	9 Months Ended
	Jun. 30, 2014
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. 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 and, further, that the patents are invalid.  The Company is unable to determine at this time if the lawsuit will have a material adverse effect on the Company.

Revenue_Tables

Revenue (Tables)	9 Months Ended
	Jun. 30, 2014
Revenue by product [Abstract]	'
Revenue from External Customers by Products and Services	'
	Components of revenue are as follows:
		Three Months Ended				Nine Months Ended
		June 30, 2014		June 30, 2013		June 30, 2014		June 30, 2013
	Ethanol	$	31,119,465	$	30,669,126	$	83,000,282	$	98,809,452
	Distillers Grains	6,958,254		9,373,499		24,802,780		34,171,509
	Other	914,000		851,760		2,437,794		2,800,468
	Total	$	38,991,719	$	40,894,385	$	110,240,856	$	135,781,429

Inventories_Tables

Inventories (Tables)	9 Months Ended
	Jun. 30, 2014
Inventory Disclosure [Abstract]	'
Schedule of Inventory, Current	'
	Inventories consist of the following as of:
		June 30,		September 30,
		2014		2013
	Raw materials, including corn, coal, chemicals and supplies	$	3,209,805	$	2,737,470
	Work in process	929,105		1,063,759
	Ethanol and distillers grains	1,396,706		1,540,970
	Total	$	5,535,616	$	5,342,199

LongTerm_Debt_Tables

Long-Term Debt (Tables)	9 Months Ended
	Jun. 30, 2014
Long-term Debt, Unclassified [Abstract]	'
Schedule of Long-term Debt Instruments	'
	Long-term debt consists of the following as of:
		June 30,			September 30,
		2014			2013
	Revolving term loan. (A)	$	—		$	—
	Note payable to Iowa Department of Transportation. (B)	135,004			187,053
		135,004			187,053
	Less current maturities	(26,437		)	(52,049		)
		$	108,567		$	135,004

Risk_Management_Tables

Risk Management (Tables)	9 Months Ended
	Jun. 30, 2014
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:
		June 30, 2014			30-Sep-13
	Derivative assets - primarily corn contracts	$	1,052,214		$	193,060
	Derivative liabilities - corn contracts	(159,721		)	(394,699		)
	Cash held by broker	623,624			633,115
	Total	$	1,516,117		$	431,476
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						Nine Months Ended
		June 30, 2014			June 30, 2013			June 30, 2014			June 30, 2013
	Decrease in revenue due to derivatives related to ethanol sales:
	Realized gain (loss)	$	(27,300	)	$	—		$	(760,673	)	$	—
	Unrealized gain (loss)	(15,057		)	—			(15,057		)	—
	Total effect on revenue	(42,357		)	—			(775,730		)	—
	(Increase) decrease in cost of goods sold due to derivatives related to corn costs:
	Realized gain (loss)	380,099			(858,225		)	158,376			132,491
	Unrealized gain (loss)	904,512			502,613			907,550			79,750
	Total effect on cost of goods sold	1,284,611			(355,612		)	1,065,926			212,241
	Total gain (loss) due to derivative activities	$	1,242,254		$	(355,612	)	$	290,196		$	212,241

Fair_Value_Measurements_Tables

Fair Value Measurements (Tables)	9 Months Ended
	Jun. 30, 2014
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 June 30, 2014 and September 30, 2013, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value:
		June 30, 2014
		Total		Level 1		Level 2		Level 3
	Assets, derivative financial instruments	$	1,052,214	$	1,052,214	$	—	$	—
	Liabilities, derivative financial instruments	159,721		159,721		—		—
		30-Sep-13
		Total		Level 1		Level 2		Level 3
	Assets, derivative financial instruments	$	193,060	$	193,060	$	—	$	—
	Liabilities, derivative financial instruments	394,699		394,699		—		—

Revenue_Details

Revenue (Details) (USD $)	3 Months Ended		9 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Revenue from External Customer [Line Items]	'	'	'	'
Revenues (Notes 2 and 7)	$38,991,719	$40,894,385	$110,240,856	$135,781,429
Ethanol [Member]	'	'	'	'
Revenue from External Customer [Line Items]	'	'	'	'
Revenues (Notes 2 and 7)	31,119,465	30,669,126	83,000,282	98,809,452
Distillers' Grains [Member]	'	'	'	'
Revenue from External Customer [Line Items]	'	'	'	'
Revenues (Notes 2 and 7)	6,958,254	9,373,499	24,802,780	34,171,509
Other [Member]	'	'	'	'
Revenue from External Customer [Line Items]	'	'	'	'
Revenues (Notes 2 and 7)	$914,000	$851,760	$2,437,794	$2,800,468

Inventories_Details

Inventories (Details) (USD $)	Jun. 30, 2014	Sep. 30, 2013
Inventory Disclosure [Abstract]	'	'
Raw materials, including corn, coal, chemicals and supplies	$3,209,805	$2,737,470
Work in process	929,105	1,063,759
Ethanol and distillers grains	1,396,706	1,540,970
Total	$5,535,616	$5,342,199

Revolving_Credit_Loan_Details

Revolving Credit Loan (Details) (USD $)	9 Months Ended			0 Months Ended
	Jun. 30, 2014	Jun. 30, 2014	Sep. 30, 2013	Jul. 02, 2014	Jul. 02, 2014
		Revolving Credit Facility [Member]	Revolving Credit Facility [Member]	Subsequent Event [Member]	Subsequent Event [Member]
					Revolving Credit Facility [Member]
Line of Credit Facility [Line Items]	'	'	'	'	'
Line of Credit Facility, Maximum Borrowing Capacity	$11,000,000	$8,500,000	'	'	'
Line of Credit Facility, Remaining Borrowing Capacity	'	6,300,000	'	'	'
Debt instrument, description of variable rate basis	'LIBOR	'LIBOR	'	'LIBOR	'LIBOR
Debt instrument, basis spread on variable rate	4.00%	3.75%	'	3.45%	3.20%
Line of credit facility, unused capacity, commitment fee percentage	0.60%	0.30%	'	0.50%	'
Revolving credit loan	'	$0	$0	'	'

LongTerm_Debt_Details

Long-Term Debt (Details) (USD $)	9 Months Ended		0 Months Ended
	Jun. 30, 2014	Sep. 30, 2013	Jul. 02, 2014
			Subsequent Event [Member]
Debt Instrument [Line Items]	'	'	'
Line of Credit Facility, Maximum Borrowing Capacity	$11,000,000	'	'
Revolving term loan	0	0	'
Note payable to Iowa Department of Transportation	135,004	187,053	'
Long-term debt, total	135,004	187,053	'
Less current maturities	-26,437	-52,049	'
Long-term debt, less current maturities	108,567	135,004	'
Debt Instrument, Description of Variable Rate Basis	'LIBOR	'	'LIBOR
Debt instrument, basis spread on variable rate	4.00%	'	3.45%
Line of credit facility, unused capacity, commitment fee percentage	0.60%	'	0.50%
Railroad revolving loan fund	$500,000	'	'
Debt instrument, interest rate, stated percentage	2.11%	'	'

RelatedParty_Transactions_Deta

Related-Party Transactions (Details) (USD $)	3 Months Ended		9 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
			bu
Related Party Transaction [Line Items]	'	'	'	'
Settlement fee payable, related party	'	'	($425,000)	($425,000)
Interest paid	'	'	34,756	107,585
Accounts payable, related parties, current	159,517	'	159,517	'
Related party settlement fee, principal remaining	'	'	850,000	'
Key Coop [Member]	'	'	'	'
Related Party Transaction [Line Items]	'	'	'	'
Related party transaction, description of transaction	'	'	100.00%	'
Loss on contract termination	'	'	2,000,000	'
Reduction in termination fee	'	'	50,000	'
Settlement fee payable, related party	'	'	1,700,000	'
Payments for legal settlements	'	'	425,000	'
Related party settlement fee, payment period, years	'	'	'4 years	'
Related party transaction, purchases from related party	3,349,766	9,829,017	10,084,927	73,106,359
Purchase commitment, remaining minimum amount committed, quantity	'	'	758,142	'
Purchase commitment, remaining minimum amount committed	3,429,384	'	3,429,384	'
Related party transaction, amounts of transaction	53,112	13,140	105,207	54,790
Accounts payable, related parties, current	262,186	'	262,186	'
Related party settlement fee, interest rate	3.25%	'	3.25%	'
Related party settlement fee, principal paid	'	'	850,000	'
Heartland [Member]	'	'	'	'
Related Party Transaction [Line Items]	'	'	'	'
Related party transaction, purchases from related party	6,492,536	875,929	12,870,130	4,490,644
Purchase commitment, remaining minimum amount committed, quantity	'	'	492,588	'
Purchase commitment, remaining minimum amount committed	2,152,997	'	2,152,997	'
Corn Forward Contract	10,000	'	10,000	'
Accounts payable, related parties, current	0	'	0	'
Mid Iowa Cooperative [Member]	'	'	'	'
Related Party Transaction [Line Items]	'	'	'	'
Related party transaction, purchases from related party	2,887,476	3,897,395	13,874,284	5,492,158
Purchase commitment, remaining minimum amount committed, quantity	'	'	20,789	'
Purchase commitment, remaining minimum amount committed	107,061	'	107,061	'
Accounts payable, related parties, current	15,448	'	15,448	'
Other Members [Member]	'	'	'	'
Related Party Transaction [Line Items]	'	'	'	'
Related party transaction, purchases from related party	$2,049,447	$1,630,954	$7,153,250	$2,111,495
Purchase commitment, remaining minimum amount committed, quantity	'	'	317,102	'
Unrecorded Unconditional Purchase Obligation, Minimum Quantity Required	1,352,152	'	1,352,152	'
Pipelines [Member]	'	'	'	'
Related Party Transaction [Line Items]	'	'	'	'
Related party settlement fee, payment period, years	'	'	'10 years	'

Commitments_and_Major_Customer1

Commitments and Major Customer (Details) (USD $)	3 Months Ended		9 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Revenue, Major Customer [Line Items]	'	'	'	'
Revenues (Notes 2 and 7)	$38,991,719	$40,894,385	$110,240,856	$135,781,429
Ethanol, Previous [Member]	'	'	'	'
Revenue, Major Customer [Line Items]	'	'	'	'
Ethanol receivable	0	'	0	'
Entity-wide, major customer, unrelated party, amount	'	'	0	34,012,975
Ethanol [Member]	'	'	'	'
Revenue, Major Customer [Line Items]	'	'	'	'
Ethanol receivable	3,502,559	'	3,502,559	'
Entity-wide, major customer, unrelated party, amount	31,161,822	30,669,126	83,776,013	64,796,472
Distillers' Grains [Member]	'	'	'	'
Revenue, Major Customer [Line Items]	'	'	'	'
Revenues (Notes 2 and 7)	'	9,373,499	'	34,171,509
Entity-wide, major customer, unrelated party, amount	6,958,254	'	9,223,317	0
Distillers grains receivable	729,381	'	729,381	'
Distillers' Grains, Previous [Member]	'	'	'	'
Revenue, Major Customer [Line Items]	'	'	'	'
Entity-wide, major customer, unrelated party, amount	0	'	15,579,463	'
Coal Contract [Member]	'	'	'	'
Revenue, Major Customer [Line Items]	'	'	'	'
Long-term Purchase Commitment, Amount	'	'	2,700,000	'
Forward Contracts [Member]	'	'	'	'
Revenue, Major Customer [Line Items]	'	'	'	'
Long-term Purchase Commitment, Amount	'	'	4,670,000	'
RTO [Member]	'	'	'	'
Revenue, Major Customer [Line Items]	'	'	'	'
Property, Plant and Equipment, Additions, Term of Contract	'	'	7,000,000	'
Property, Plant, and Equipment. Additions, New Construction, Principal Paid	'	'	4,000,000	'
Property, Plant, and Equipment, Additions, New Construction, Remaining Principal Balance	'	'	3,000,000	'
Pipelines [Member]	'	'	'	'
Revenue, Major Customer [Line Items]	'	'	'	'
Property, Plant and Equipment, Additions, Term of Contract	'	'	3,600,000	'
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	'	'	0	'
Property, Plant, and Equipment, Additions, New Construction, Amounts in Accounts Payable	'	'	983,000	'
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 $)	9 Months Ended
In Millions, unless otherwise specified	Jun. 30, 2014
Coal Contract [Member]	'
Long-term Purchase Commitment [Line Items]	'
Long-term Purchase Commitment, Amount	$2.70
RTO [Member]	'
Long-term Purchase Commitment [Line Items]	'
Short term purchase commitments, minimum dollar required	7
Oil Separation System [Member]	'
Long-term Purchase Commitment [Line Items]	'
Short term purchase commitments, minimum dollar required	$2.40

Risk_Management_Details

Risk Management (Details) (USD $)	3 Months Ended		9 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013	Sep. 30, 2013
Trading Activity, Gains and Losses, Net [Line Items]	'	'	'	'	'
Derivative assets - primarily corn contracts	$1,052,214	'	$1,052,214	'	$193,060
Derivative liabilities - corn contracts	-159,721	'	-159,721	'	-394,699
Cash held by broker	623,624	'	623,624	'	633,115
Total	1,516,117	'	1,516,117	'	431,476
Trading Activity, Gains and Losses, Net	1,242,254	-355,612	290,196	212,241	'
Sales [Member]	'	'	'	'	'
Trading Activity, Gains and Losses, Net [Line Items]	'	'	'	'	'
Gain (Loss) on Sale of Derivatives	-27,300	0	-760,673	0	'
Unrealized Gain (Loss) on Derivatives	-15,057	0	-15,057	0	'
Trading Activity, Gains and Losses, Net	-42,357	0	-775,730	0	'
Cost of Goods, Total [Member]	'	'	'	'	'
Trading Activity, Gains and Losses, Net [Line Items]	'	'	'	'	'
Gain (Loss) on Sale of Derivatives	380,099	-858,225	158,376	132,491	'
Unrealized Gain (Loss) on Derivatives	904,512	502,613	907,550	79,750	'
Trading Activity, Gains and Losses, Net	$1,284,611	($355,612)	$1,065,926	$212,241	'

Fair_Value_Measurements_Detail

Fair Value Measurements (Details) (USD $)	Jun. 30, 2014	Sep. 30, 2013
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]	'	'
Assets, derivative financial instruments	$1,052,214	$193,060
Fair Value, Measurements, Recurring [Member]	'	'
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]	'	'
Assets, derivative financial instruments	1,052,214	193,060
Assets, derivative financial instruments	-159,721	-394,699
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member]	'	'
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]	'	'
Assets, derivative financial instruments	1,052,214	193,060
Assets, derivative financial instruments	-159,721	-394,699
Fair Value, Measurements, Recurring [Member] | 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, Measurements, Recurring [Member] | 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