Cardinal Ethanol (CRDE) 10-Q 5 Feb 15 2015 Q1 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	3 Months Ended
	Dec. 31, 2014	Feb. 05, 2015
Entity Information [Line Items]
Entity Registrant Name	Cardinal Ethanol LLC
Entity Central Index Key	1352081
Current Fiscal Year End Date	-21
Entity Filer Category	Non-accelerated Filer
Document Type	10-Q
Document Period End Date	31-Dec-14
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	Q1
Amendment Flag	FALSE
Entity Common Stock, Shares Outstanding		14,606

Balance_Sheets

Balance Sheets (USD $)	Dec. 31, 2014	Sep. 30, 2014
Current Assets
Cash	$30,952,358	$27,731,976
Restricted cash	1,493,294	885,100
Trade accounts receivable	9,492,993	21,766,301
Miscellaneous receivables	115,775	5,968
Inventories	20,708,812	7,425,399
Prepaid and other current assets	838,575	529,461
Commodity derivative instruments	887,671	1,690,531
Total current assets	64,489,478	60,034,736
Property, Plant, and Equipment
Land and land improvements	21,124,597	21,124,597
Plant and equipment	127,295,940	126,234,680
Building	7,018,061	7,018,061
Office equipment	579,019	579,019
Vehicles	31,928	31,928
Construction in process	679,609	1,015,044
Gross property, plant and equipment	156,729,154	156,003,329
Less accumulated depreciation	-52,580,678	-50,370,553
Net property, plant, and equipment	104,148,476	105,632,776
Other Assets
Investment	718,553	718,553
Total other assets	718,553	718,553
Total Assets	169,356,507	166,386,065
Current Liabilities
Accounts payable	2,511,763	3,143,834
Accounts payable- corn	15,922,093	6,058,527
Accrued expenses	2,761,240	2,891,129
Commodity derivative instruments	0	1,287,147
Total Current Liabilities	21,195,096	13,380,637
Commitments and Contingencies
Members’ Equity
Members' contributions, net of cost of raising capital,14,606 units authorized, issued and outstanding	70,912,213	70,912,213
Retained earnings	77,249,198	82,093,215
Total members' equity	148,161,411	153,005,428
Total Liabilities and Members’ Equity	$169,356,507	$166,386,065

Balance_Sheets_Parenthetical

Balance Sheets (Parenthetical)	Dec. 31, 2014	Sep. 30, 2014
Members' contributions, units issued and outstanding	14,606	14,606

Condensed_Statements_of_Operat

Condensed Statements of Operations and Comprehensive Income (Unaudited) (USD $)	3 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Revenues	$65,858,591	$83,572,765
Cost of Goods Sold	44,541,860	59,917,216
Gross Profit	21,316,731	23,655,549
Operating Expenses	1,354,005	1,220,865
Operating Income	19,962,726	22,434,684
Other Income (Expense)
Interest income	0	9,188
Interest expense	0	-726,737
Miscellaneous income	23,458	20,664
Total Other Income	23,458	-696,885
Net Income	19,986,184	21,737,799
Weight Average Units Outstanding - basic and diluted	14,606	14,606
Net Income Per Unit - basic and diluted	$1,368.35	$1,488.28
Distributions Per Unit	$1,700	$475
Comprehensive Income (Loss):
Net Income	19,986,184	21,737,799
Interest rate swap fair value change and reclassification, net	0	681,233
Comprehensive Income	$19,986,184	$22,419,032

Statements_of_Cash_Flows_Unaud

Statements of Cash Flows (Unaudited) (USD $)	3 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Cash Flows from Operating Activities
Net Income	$19,986,184	$21,737,799
Adjustments to reconcile net income to net cash from operations:
Depreciation and amortization	2,221,712	2,147,942
Change in fair value of commodity derivative instruments	1,489,722	-954,333
Loss on sale of equipment	-11,827	0
Change in operating assets and liabilities:
Restricted cash	-608,194	49,612
Trade accounts receivables	12,273,308	-2,219,499
Miscellaneous receivable	-109,807	-23,933
Inventories	-13,283,413	-481,480
Prepaid and other current assets	-309,114	-223,606
Deposits	0	80,000
Commodity Derivative instruments	-1,974,009	182,990
Accounts payable	-632,071	-1,105,583
Accounts payable-corn	9,863,566	17,253,811
Accrued expenses	-145,863	-483,531
Net cash provided by operating activities	28,760,194	35,960,189
Cash Flows from Investing Activities
Capital expenditures	-744,611	-1,708,702
Proceeds from sale of equipment	35,000	0
Net cash used for investing activities	-709,611	-1,708,702
Cash Flows from Financing Activities
Distributions paid	-24,830,201	-6,937,851
Payments on long-term debt	0	-27,943,975
Net cash used for financing activities	-24,830,201	-34,881,826
Net Increase (Decrease) in Cash	3,220,382	-630,339
Cash – Beginning of Period	27,731,976	24,216,700
Cash – End of Period	30,952,358	23,586,361
Supplemental Cash Flow Information
Interest paid	0	1,255,531
Supplemental Disclosure of Noncash Investing and Financing Activities
Capital expenditures included in accrued expenses	$15,974	$327,832

Summary_of_Significant_Account

Summary of Significant Accounting Policies	3 Months Ended
	Dec. 31, 2014
Summary of Significant Accounting Policies [Abstract]
Summary of Significant Accounting Policies	SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
	The accompanying unaudited condensed financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted as permitted by such rules and regulations. These financial statements and related notes should be read in conjunction with the financial statements and notes thereto included in the Company's audited financial statements for the year ended September 30, 2014, contained in the Company's annual report on Form 10-K.
	In the opinion of management, the interim condensed financial statements reflect all adjustments considered necessary for fair presentation.
	Nature of Business
	Cardinal Ethanol, LLC, (the “Company”) is an Indiana limited liability company currently producing fuel-grade ethanol, distillers grains, corn oil and carbon dioxide near Union City, Indiana and sells these products throughout the continental United States. The Company's plant has an approximate annual production capacity between 100 and 120 million gallons.
	Accounting Estimates
	Management uses estimates and assumptions in preparing these financial statements in accordance with generally accepted accounting principles. Those estimates and assumptions affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities, and the reported revenues and expenses. The Company uses estimates and assumptions in accounting for the following significant matters, among others; the useful lives of fixed assets, allowance for doubtful accounts, the valuation of basis and delay price contracts on corn purchases, derivatives, inventory, patronage dividends, long-lived assets and inventory purchase commitments. Actual results may differ from previously estimated amounts, and such differences may be material to the financial statements. The Company periodically reviews estimates and assumptions, and the effects of revisions are reflected in the period in which the revision is made.
	Restricted Cash
	As a part of its commodities hedging activities, the Company is required to maintain cash balances with our commodities trading companies for initial and maintenance margins on a per futures contract basis. Changes in the market value of contracts may increase these requirements. As the futures contracts expire, the margin requirements also expire. Accordingly, we record the cash maintained with the traders in the margin accounts as restricted cash. Since this cash is immediately available to us upon request when there is a margin excess, we consider this restricted cash to be a current asset.
	Inventories
	Inventories consist of raw materials, work in process, finished goods and parts. Corn is the primary raw material. Finished goods consist of ethanol, dried distiller grains and corn oil. Inventories are stated at the lower of weighted average cost or market. Market is based on current replacement values except that it does not exceed net realizable values and it is not less than net realizable values reduced by allowances from normal profit margins.
	Property, Plant and Equipment
	Property, plant, and equipment are stated at cost. Depreciation is provided over estimated useful lives by use of the straight line depreciation method. Maintenance and repairs are expensed as incurred; major improvements and betterments are capitalized. Construction in progress expenditures will be depreciated using the straight-line method over their estimated useful lives once the assets are placed into service. Depreciation expense totaled approximately $2,222,000 for the three month period ended December 31, 2014. Depreciation for the same period in 2013 was approximately $2,148,000.
	Long-Lived Assets
	The Company reviews its long-lived assets, such as property, plant and equipment and financing costs, subject to depreciation and amortization, for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If circumstances require a long-lived asset be tested for possible impairment, the Company first compares undiscounted cash flows expected to be generated by an asset to the carrying value of the asset. If the carrying value of the long-lived asset is not recoverable on an undiscounted cash flow basis, impairment is recognized to the extent that the carrying value exceeds its fair value. Fair value is determined through various valuation techniques including discounted cash flow models, quoted market values and third-party independent appraisals, as considered necessary.
	Investments
	Investments consist of the capital stock and patron equities of the Company's distillers grains marketer. The investments are stated at the lower of cost or fair value and adjusted for non cash patronage equities received. Patronage dividends are recognized when received and included within revenue in the condensed statements of operations and comprehensive income.
	Revenue Recognition
	The Company generally sells ethanol and related products pursuant to marketing agreements. Revenues from the production of ethanol and the related products are recorded when the customer has taken title and assumed the risks and rewards of ownership, prices are fixed or determinable and collectability is reasonably assured. The Company believes that there are no ethanol sales, during any given month, which should be considered contingent and recorded as deferred revenue. The Company's products are sold Free on Board (FOB) shipping point.
	In accordance with the Company's agreements for the marketing and sale of ethanol and related products, marketing fees, commissions and freight due to the marketers are deducted from the gross sales price at the time incurred. Revenue is recorded net of these commissions and freight as they do not provide an identifiable benefit that is sufficiently separable from the sale of ethanol and related products.
	Net Income per Unit
	Basic net income per unit is computed by dividing net income by the weighted average number of members' units outstanding during the period. Diluted net income per unit is computed by dividing net income by the weighted average number of members' units and members' unit equivalents outstanding during the period. There were no member unit equivalents outstanding during the periods presented; accordingly, the Company's basic and diluted net income per unit are the same.

Concentrations

Concentrations	3 Months Ended
	Dec. 31, 2014
Concentrations [Abstract]
Concentrations	CONCENTRATIONS
	Two major customers accounted for approximately 98% and 96% of the outstanding accounts receivable balance at December 31, 2014 and September 30, 2014, respectively. These same two customers accounted for approximately 96% of revenue for the three month period ended December 31, 2014. Revenue percentages for the same customer for the three month period ended December 31, 2013 were 97%.

Inventories

Inventories	3 Months Ended
	Dec. 31, 2014
Inventory Disclosure [Abstract]
Inventories	INVENTORIES
	Inventories consist of the following as of:
		December 31, 2014 (Unaudited)		30-Sep-14
	Raw materials	$	10,961,579	$	2,860,060
	Work in progress	1,238,089		1,316,664
	Finished goods	6,503,542		1,316,482
	Spare parts	2,005,602		1,932,193
	Total	$	20,708,812	$	7,425,399
	In the ordinary course of business, the Company enters into forward purchase contracts for its commodity purchases and sales. At December 31, 2014, the Company had forward corn purchase contracts at various fixed prices for various delivery periods through May 2016 for a total commitment of approximately $15,283,000. Approximately $2,432,000 of the forward corn purchases were with a related party. Given the uncertainty of future ethanol and corn prices, the Company could incur a loss on the outstanding corn purchase contracts in future periods. Management has evaluated these forward contracts using a methodology similar to that used in the lower of cost or market evaluation with respect to inventory valuation, and has determined that no impairment existed at December 31, 2014 or September 30, 2014. At December 31, 2014, the Company has forward dried distiller grains sales contracts of approximately 106,000 tons at various fixed prices for various delivery periods through June 2015.

Derivative_Instruments

Derivative Instruments	3 Months Ended
	Dec. 31, 2014
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative Instruments	DERIVATIVE INSTRUMENTS
	The Company enters into corn, ethanol and natural gas derivative instruments, which are required to be recorded as either assets or liabilities at fair value in the balance sheet. Derivatives qualify for treatment as hedges when there is a high correlation between the change in fair value of the derivative instrument and the related change in value of the underlying hedged item. The Company must designate the hedging instruments based upon the exposure being hedged as a fair value hedge, a cash flow hedge or a hedge against foreign currency exposure. The Company formally documents, designates, and assesses the effectiveness of transactions that receive hedge accounting initially and on an on-going basis.
	Commodity Contracts
	The Company enters into commodity-based derivatives, for corn, ethanol and natural gas in order to protect cash flows from fluctuations caused by volatility in commodity prices. This is also done to protect gross profit margins from potentially adverse effects of market and price volatility on commodity based purchase commitments where the prices are set at a future date. These derivatives are not designated as effective hedges for accounting purposes. For derivative instruments that are not accounted for as hedges, or for the ineffective portions of qualifying hedges, the change in fair value is recorded through earnings in the period of change. The changes in the fair market value of ethanol derivative instruments are included as a component of revenue.  The changes in the fair market value of corn and natural gas derivative instruments are included as a component of cost of goods sold.
	The table below shows the underlying quantities of corn, ethanol and natural gas resulting from the short (selling) positions and long (buying) positions that the Company had to hedge its forward corn contracts, corn inventory, ethanol sales and natural gas purchases. Corn positions are traded on the Chicago Board of Trade and ethanol and natural gas positions are traded on the New York Mercantile Exchange. These derivatives have not been designated as an effective hedge for accounting purposes. Corn, ethanol and natural gas derivatives are forecasted to settle for various delivery periods through July 2016, April 2015 and February 2015 respectively, as of December 31, 2014.
	The following table indicates the bushels of corn under derivative contracts as of:
		December 31, 2014			30-Sep-14
	Short	4,965,000			1,695,000
	Long	5,515,000			4,460,000
	The following table indicates the gallons of ethanol under derivative contracts as of:
		December 31, 2014			30-Sep-14
	Short	38,220,000			30,660,000
	Long	5,670,000			11,970,000
	The following table indicates the MMBTUs of natural gas under derivative contracts as of:
		December 31, 2014			30-Sep-14
	Short	—			150,000
	Long	300,000			—
	Interest Rate Contract
	The Company previously managed part of its floating rate debt using an interest rate swap associated with the "Fixed Rate Note" as defined in our loan agreement. The Company entered into a fixed rate swap to alter its exposure to the impact of changing interest rates on its results of operations and future cash outflows for interest. Fixed rate swaps are used to reduce the Company's risk of the possibility of increased interest costs. Interest rate swap contracts are therefore used by the Company to separate interest rate risk management from the debt funding decision.
	On October 8, 2013, the Company terminated the interest rate swap and therefore at December 31, 2014, the Company had no amount outstanding in the swap agreement.
	The following table provides balance sheet details regarding the Company's derivative financial instruments at December 31, 2014:
	Instrument	Balance Sheet Location		Assets				Liabilities
	Ethanol derivative contracts	Commodity Derivative Instruments - Current		$	495,028			$	—
	Corn derivative contracts	Commodity Derivative Instruments - Current		$	361,043			$	—
	Natural gas derivative contracts	Commodity Derivative Instruments - Current		$	31,600			$	—
	As of December 31, 2014 the Company had approximately $1,493,000 of cash collateral (restricted cash) related to ethanol, corn and natural gas derivatives held by three brokers.
	The following table provides balance sheet details regarding the Company's derivative financial instruments at September 30, 2014:
	Instrument	Balance Sheet Location		Assets				Liabilities
	Ethanol derivative contracts	Commodity Derivative Instruments - Current		$	1,690,531			$	—
	Corn derivative contracts	Commodity Derivative Instruments - Current		$	—			$	1,277,147
	Natural gas derivative contracts	Commodity Derivative Instruments - Current		$	—			$	10,000
	As of September 30, 2014 the Company had approximately $885,000 of cash collateral (restricted cash) related to ethanol and corn derivatives held by two brokers.
	The following tables provide details regarding the gains and (losses) from the Company's derivative instruments in other comprehensive income and statement of operations for the three months ended December 31, 2013. There was no effect for the three month period ended December 31, 2014 as the Company terminated the swap agreement in fiscal year 2014.
	Derivatives in Cash Flow Hedging Relationship	Amount of Gain Recognized In OCI on Derivative				Location of Loss Reclassified From Accumulated OCI into Income	Amount of Gain Reclassified From Accumulated OCI into Income on Derivative			Location of Gain Recognized in Income	Amount of Gain or (Loss) Recognized in Income on Derivative (ineffective portion)
	Interest rate swap	$	18,636			Interest expense	$	662,597		Interest expense	$	—
	The following table provides details regarding the gains and (losses) from the Company's derivative instruments in the statements of operations, none of which are designated as hedging instruments for the three months ended December 31, 2014:
	Instrument	Statement of Operations Location	Amount
	Corn Derivative Contracts	Cost of Goods Sold	$	(119,322	)
	Ethanol Derivative Contracts	Revenues	(1,554,385		)
	Natural Gas Derivative Contracts	Cost of Goods Sold	183,985
	Totals		$	(1,489,722	)
	The following table provides details regarding the gains and (losses) from the Company's derivative instruments in the statements of operations, none of which are designated as hedging instruments for the three months ended December 31, 2013:
	Instrument	Statement of Operations Location	Amount
	Corn Derivative Contracts	Cost of Goods Sold	$	(1,704,802	)
	Ethanol Derivative Contracts	Revenues	2,660,651
	Natural Gas Derivative Contracts	Cost of Goods Sold	(1,516		)
	Totals		$	954,333

Fair_Value_Instruments

Fair Value Instruments	3 Months Ended
	Dec. 31, 2014
Fair Value Disclosures [Abstract]
Fair Value Measurements	FAIR VALUE MEASUREMENTS
	The following table provides information on those assets and liabilities measured at fair value on a recurring basis as of December 31, 2014:
	Derivatives	Carrying Amount			Fair Value			Level 1			Level 2	Level 3
	Corn Derivative Contracts	$	361,043		$	361,043		$	361,043		—	—
	Ethanol Derivative Contracts	$	495,028		$	495,028		$	495,028		—	—
	Natural Gas Derivative Contracts	$	31,600		$	31,600		$	31,600		—	—
	The following table provides information on those assets and liabilities measured at fair value on a recurring basis as of September 30, 2014:
	Derivatives	Carrying Amount			Fair Value			Level 1			Level 2	Level 3
	Corn Derivative Contracts	$	(1,277,147	)	$	(1,277,147	)	$	(1,277,147	)	—	—
	Ethanol Derivative Contracts	$	1,690,531		$	1,690,531		$	1,690,531		—	—
	Natural Gas Derivative Contracts	$	(10,000	)	$	(10,000	)	$	(10,000	)	—	—
	We determine the fair value of commodity derivative instruments by obtaining fair value measurements from an independent pricing service. The fair value measurements consider observable data that may include dealer quotes and live trading levels from the Chicago Board of Trade market and New York Mercantile Exchange.

Bank_Financing

Bank Financing	3 Months Ended
	Dec. 31, 2014
Bank Financing [Abstract]
Bank Financing	BANK FINANCING
	On June 10, 2013, the Company closed on a new loan agreement which replaced an earlier agreement. The agreement established two new notes, the Declining Revolving Note (Declining Note) and the Revolving Credit Note in exchange for liens on all property (real and personal, tangible and intangible) which include, among other things, a mortgage on the property, a security interest on commodity trading accounts, and assignment of material contracts. On October 8, 2013, the Company executed a First Amendment of the First Amended and Restated Construction Loan Agreement (the "First Amendment") with its lender. The First Amendment amended the date upon which the Declining Note began to revolve, from April 8, 2014 to October 8, 2013.
	On February 27, 2014, the Company executed a Second Amendment of the First Amended and Restated Construction Loan Agreement (the "Second Amendment") with its lender. The Second Amendment reduced the maximum availability of the Declining Note from approximately $26,000,000 to $5,000,000. In addition, the Company is required to make monthly interest payments on the Declining Note rather than the quarterly principal and interest payments previously required. The Second Amendment also deleted the requirements that the Company make excess cash flow payments and maintain a certain fixed charge coverage ratio, increased the maximum annual capital expenditures limit from $4,000,000 to $5,000,000 and removed all restrictions on redemptions of membership units and distributions to members. Finally, the Second Amendment extended the termination date of the Revolving Credit Note from June 11, 2014 to February 28, 2015.
	Declining Note
	The Declining Note has a limit of $5,000,000. The interest rate on the Declining Note is based on the 3-month LIBOR plus three hundred basis points. The interest rate at both December 31, 2014 and September 30, 2014 was 3.24%. There were no borrowings outstanding on the Declining Note at December 31, 2014 or September 30, 2014.
	Revolving Credit Note
	The Revolving Credit Note has a limit of $15,000,000 supported by a borrowing base made up of the Company's corn, ethanol, dried distillers grain and corn oil inventories reduced by accounts payable associated with those inventories having a priority. It is also supported by the eligible accounts receivable and commodity trading account excess margin funds. The interest rate on the Revolving Credit Note is based on the 1-month LIBOR plus three hundred basis points. The interest rate at December 31, 2014 was 3.16%. There were no borrowings outstanding on the Revolving Credit Note at December 31, 2014 or September 30, 2014.
	These loans are subject to protective covenants, which require the Company to maintain various financial ratios. The covenants require the Company to maintain a working capital requirement of $15,000,000, and allow the Company $5,000,000 of capital expenditures per year without prior approval.

Leases

Leases	3 Months Ended
	Dec. 31, 2014
Leases [Abstract]
Leases	LEASES
	At December 31, 2014, the Company had the following commitments for payments of rentals under leases which at inception had a non-cancellable term of more than one year:
		Total
	January 1, 2015 to December 31, 2015	$	1,172,964
	January 1, 2016 to December 31, 2016	1,172,964
	January 1, 2017 to December 31, 2017	1,172,964
	January 1, 2018 to December 31, 2018	975,829
	Total minimum lease commitments	$	4,494,721

Commitments_and_Contingencies

Commitments and Contingencies	3 Months Ended
	Dec. 31, 2014
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	COMMITMENTS AND CONTINGENCIES
	Contingencies
	In February 2010, a lawsuit against the Company was filed by an unrelated party claiming the Company's operation of the oil separation system in a patent infringement. In connection with the lawsuit, in February 2010, the agreement for the construction and installation of the tricanter oil separation system was amended. In this amendment the manufacturer and installer of the tricanter oil separation system indemnifies the Company against all claims of infringement of patents, copyrights or other intellectual property rights from the Company's purchase and use of the tricanter oil system and agrees to defend the Company in the lawsuit filed at no expense to the Company. On October 23, 2014, the court granted summary judgment finding that all of the patents claimed were invalid and that the Company had not infringed. However, this ruling is subject to appeal. The manufacturer has, and the Company expects it will continue, to vigorously defend itself and the Company in these lawsuits and in any appeal filed.
	If the ruling was to be successfully appealed, the Company estimates that damages sought in this litigation if awarded would be
	based on a reasonable royalty to, or lost profits of, the plaintiff. If the court deems the case exceptional, attorney's fees may be awarded and are likely to be $1,000,000 or more. The manufacturer has also agreed to indemnify the Company for these fees. However, in the event that damages are awarded, if the manufacturer is unable to fully indemnify the Company for any reason, the Company could be liable. In addition, the Company may need to cease use of its current oil separation process and seek out a replacement or cease oil production altogether.

Uncertainties_Impacting_the_Et

Uncertainties Impacting the Ethanol Industry and Our Future Operations	3 Months Ended
	Dec. 31, 2014
Uncertainties Impacting the Ethanol Industry and Our Future Operations [Abstract]
Uncertainties Impacting the Ethanol Industry and Our Future Operations	UNCERTAINTIES IMPACTING THE ETHANOL INDUSTRY AND OUR FUTURE OPERATIONS
	The Company has certain risks and uncertainties that it experiences during volatile market conditions, which can have a severe impact on operations. The Company's revenues are derived from the sale and distribution of ethanol, distillers grains and corn oil to customers primarily located in the U.S. Corn for the production process is supplied to the plant primarily from local agricultural producers and from purchases on the open market. Ethanol sales average approximately 78% of total revenues and corn costs average 79% of total cost of goods sold.
	The Company's operating and financial performance is largely driven by prices at which the Company sells ethanol, distillers grains and corn oil, and the related cost of corn. The price of ethanol is influenced by factors such as supply and demand, weather, government policies and programs, and the unleaded gasoline and the petroleum markets, although, since 2005, the prices of ethanol and gasoline began a divergence with ethanol selling for less than gasoline at the wholesale level. Excess ethanol supply in the market, in particular, puts downward pressure on the price of ethanol. The Company's largest cost of production is corn. The cost of corn is generally impacted by factors such as supply and demand, weather, government policies and programs. The Company's risk management program is used to protect against the price volatility of these commodities.

Accounting_Policies

Accounting Policies	3 Months Ended
	Dec. 31, 2014
Summary of Significant Accounting Policies [Abstract]
Accounting Estimates	Accounting Estimates
	Management uses estimates and assumptions in preparing these financial statements in accordance with generally accepted accounting principles. Those estimates and assumptions affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities, and the reported revenues and expenses. The Company uses estimates and assumptions in accounting for the following significant matters, among others; the useful lives of fixed assets, allowance for doubtful accounts, the valuation of basis and delay price contracts on corn purchases, derivatives, inventory, patronage dividends, long-lived assets and inventory purchase commitments. Actual results may differ from previously estimated amounts, and such differences may be material to the financial statements. The Company periodically reviews estimates and assumptions, and the effects of revisions are reflected in the period in which the revision is made.
Restricted Cash	Restricted Cash
	As a part of its commodities hedging activities, the Company is required to maintain cash balances with our commodities trading companies for initial and maintenance margins on a per futures contract basis. Changes in the market value of contracts may increase these requirements. As the futures contracts expire, the margin requirements also expire. Accordingly, we record the cash maintained with the traders in the margin accounts as restricted cash. Since this cash is immediately available to us upon request when there is a margin excess, we consider this restricted cash to be a current asset.
Inventories	Inventories
	Inventories consist of raw materials, work in process, finished goods and parts. Corn is the primary raw material. Finished goods consist of ethanol, dried distiller grains and corn oil. Inventories are stated at the lower of weighted average cost or market. Market is based on current replacement values except that it does not exceed net realizable values and it is not less than net realizable values reduced by allowances from normal profit margins.
Property, Plant and Equipment	Property, Plant and Equipment
	Property, plant, and equipment are stated at cost. Depreciation is provided over estimated useful lives by use of the straight line depreciation method. Maintenance and repairs are expensed as incurred; major improvements and betterments are capitalized. Construction in progress expenditures will be depreciated using the straight-line method over their estimated useful lives once the assets are placed into service. Depreciation expense totaled approximately $2,222,000 for the three month period ended December 31, 2014. Depreciation for the same period in 2013 was approximately $2,148,000.
Long-Lived Assets	Long-Lived Assets
	The Company reviews its long-lived assets, such as property, plant and equipment and financing costs, subject to depreciation and amortization, for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If circumstances require a long-lived asset be tested for possible impairment, the Company first compares undiscounted cash flows expected to be generated by an asset to the carrying value of the asset. If the carrying value of the long-lived asset is not recoverable on an undiscounted cash flow basis, impairment is recognized to the extent that the carrying value exceeds its fair value. Fair value is determined through various valuation techniques including discounted cash flow models, quoted market values and third-party independent appraisals, as considered necessary.
Investments	Investments
	Investments consist of the capital stock and patron equities of the Company's distillers grains marketer. The investments are stated at the lower of cost or fair value and adjusted for non cash patronage equities received. Patronage dividends are recognized when received and included within revenue in the condensed statements of operations and comprehensive income.
Revenue Recognition	Revenue Recognition
	The Company generally sells ethanol and related products pursuant to marketing agreements. Revenues from the production of ethanol and the related products are recorded when the customer has taken title and assumed the risks and rewards of ownership, prices are fixed or determinable and collectability is reasonably assured. The Company believes that there are no ethanol sales, during any given month, which should be considered contingent and recorded as deferred revenue. The Company's products are sold Free on Board (FOB) shipping point.
	In accordance with the Company's agreements for the marketing and sale of ethanol and related products, marketing fees, commissions and freight due to the marketers are deducted from the gross sales price at the time incurred. Revenue is recorded net of these commissions and freight as they do not provide an identifiable benefit that is sufficiently separable from the sale of ethanol and related products.
Net Income per Unit	Net Income per Unit
	Basic net income per unit is computed by dividing net income by the weighted average number of members' units outstanding during the period. Diluted net income per unit is computed by dividing net income by the weighted average number of members' units and members' unit equivalents outstanding during the period. There were no member unit equivalents outstanding during the periods presented; accordingly, the Company's basic and diluted net income per unit are the same.

Inventories_Tables

Inventories (Tables)	3 Months Ended
	Dec. 31, 2014
Inventory Disclosure [Abstract]
Schedule of Inventory	Inventories consist of the following as of:
		December 31, 2014 (Unaudited)		30-Sep-14
	Raw materials	$	10,961,579	$	2,860,060
	Work in progress	1,238,089		1,316,664
	Finished goods	6,503,542		1,316,482
	Spare parts	2,005,602		1,932,193
	Total	$	20,708,812	$	7,425,399

Derivative_Instruments_Tables

Derivative Instruments (Tables)	3 Months Ended
	Dec. 31, 2014
Derivative [Line Items]
Schedule of Derivatives Instruments Statements of Financial Performance and Financial Position	The following table provides balance sheet details regarding the Company's derivative financial instruments at December 31, 2014:
	Instrument	Balance Sheet Location		Assets				Liabilities
	Ethanol derivative contracts	Commodity Derivative Instruments - Current		$	495,028			$	—
	Corn derivative contracts	Commodity Derivative Instruments - Current		$	361,043			$	—
	Natural gas derivative contracts	Commodity Derivative Instruments - Current		$	31,600			$	—
	As of December 31, 2014 the Company had approximately $1,493,000 of cash collateral (restricted cash) related to ethanol, corn and natural gas derivatives held by three brokers.
	The following table provides balance sheet details regarding the Company's derivative financial instruments at September 30, 2014:
	Instrument	Balance Sheet Location		Assets				Liabilities
	Ethanol derivative contracts	Commodity Derivative Instruments - Current		$	1,690,531			$	—
	Corn derivative contracts	Commodity Derivative Instruments - Current		$	—			$	1,277,147
	Natural gas derivative contracts	Commodity Derivative Instruments - Current		$	—			$	10,000
	As of September 30, 2014 the Company had approximately $885,000 of cash collateral (restricted cash) related to ethanol and corn derivatives held by two brokers.
Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss)	The following tables provide details regarding the gains and (losses) from the Company's derivative instruments in other comprehensive income and statement of operations for the three months ended December 31, 2013. There was no effect for the three month period ended December 31, 2014 as the Company terminated the swap agreement in fiscal year 2014.
	Derivatives in Cash Flow Hedging Relationship	Amount of Gain Recognized In OCI on Derivative				Location of Loss Reclassified From Accumulated OCI into Income	Amount of Gain Reclassified From Accumulated OCI into Income on Derivative			Location of Gain Recognized in Income	Amount of Gain or (Loss) Recognized in Income on Derivative (ineffective portion)
	Interest rate swap	$	18,636			Interest expense	$	662,597		Interest expense	$	—
Schedule of Other Derivatives Not Designated as Hedging Instruments, Statements of Financial Performance and Financial Position, Location [Table Text Block]	The following table provides details regarding the gains and (losses) from the Company's derivative instruments in the statements of operations, none of which are designated as hedging instruments for the three months ended December 31, 2014:
	Instrument	Statement of Operations Location	Amount
	Corn Derivative Contracts	Cost of Goods Sold	$	(119,322	)
	Ethanol Derivative Contracts	Revenues	(1,554,385		)
	Natural Gas Derivative Contracts	Cost of Goods Sold	183,985
	Totals		$	(1,489,722	)
	The following table provides details regarding the gains and (losses) from the Company's derivative instruments in the statements of operations, none of which are designated as hedging instruments for the three months ended December 31, 2013:
	Instrument	Statement of Operations Location	Amount
	Corn Derivative Contracts	Cost of Goods Sold	$	(1,704,802	)
	Ethanol Derivative Contracts	Revenues	2,660,651
	Natural Gas Derivative Contracts	Cost of Goods Sold	(1,516		)
	Totals		$	954,333
Corn [Member]
Derivative [Line Items]
Schedule of Notional Amounts of Outstanding Derivative Positions	The following table indicates the bushels of corn under derivative contracts as of:
		December 31, 2014			30-Sep-14
	Short	4,965,000			1,695,000
	Long	5,515,000			4,460,000
Ethanol [Member]
Derivative [Line Items]
Schedule of Notional Amounts of Outstanding Derivative Positions	The following table indicates the gallons of ethanol under derivative contracts as of:
		December 31, 2014			30-Sep-14
	Short	38,220,000			30,660,000
	Long	5,670,000			11,970,000
Natural Gas [Member]
Derivative [Line Items]
Schedule of Notional Amounts of Outstanding Derivative Positions	The following table indicates the MMBTUs of natural gas under derivative contracts as of:
		December 31, 2014			30-Sep-14
	Short	—			150,000
	Long	300,000			—

Fair_Value_Instruments_Tables

Fair Value Instruments (Tables)	3 Months Ended
	Dec. 31, 2014
Fair Value Disclosures [Abstract]
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis	The following table provides information on those assets and liabilities measured at fair value on a recurring basis as of December 31, 2014:
	Derivatives	Carrying Amount			Fair Value			Level 1			Level 2	Level 3
	Corn Derivative Contracts	$	361,043		$	361,043		$	361,043		—	—
	Ethanol Derivative Contracts	$	495,028		$	495,028		$	495,028		—	—
	Natural Gas Derivative Contracts	$	31,600		$	31,600		$	31,600		—	—
	The following table provides information on those assets and liabilities measured at fair value on a recurring basis as of September 30, 2014:
	Derivatives	Carrying Amount			Fair Value			Level 1			Level 2	Level 3
	Corn Derivative Contracts	$	(1,277,147	)	$	(1,277,147	)	$	(1,277,147	)	—	—
	Ethanol Derivative Contracts	$	1,690,531		$	1,690,531		$	1,690,531		—	—
	Natural Gas Derivative Contracts	$	(10,000	)	$	(10,000	)	$	(10,000	)	—	—

Leases_Tables

Leases (Tables)	3 Months Ended
	Dec. 31, 2014
Leases [Abstract]
Schedule of Future Minimum Payments for Capital and Operating Leases	At December 31, 2014, the Company had the following commitments for payments of rentals under leases which at inception had a non-cancellable term of more than one year:
		Total
	January 1, 2015 to December 31, 2015	$	1,172,964
	January 1, 2016 to December 31, 2016	1,172,964
	January 1, 2017 to December 31, 2017	1,172,964
	January 1, 2018 to December 31, 2018	975,829
	Total minimum lease commitments	$	4,494,721

Summary_of_Significant_Account1

Summary of Significant Accounting Policies Nature of Business (Details) (Ethanol [Member])	3 Months Ended
	Dec. 31, 2014
	gal
Minimum [Member]
Product Information [Line Items]
Annual Production Capacity	100,000,000
Maximum [Member]
Product Information [Line Items]
Annual Production Capacity	120,000,000

Summary_of_Significant_Account2

Summary of Significant Accounting Policies Property, Plant and Equipment (Details) (Land and Building [Member], USD $)	3 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Land and Building [Member]
Property, Plant and Equipment [Line Items]
Depreciation	$2,222,000	$2,148,000

Concentrations_Details

Concentrations (Details) (Customer Concentration Risk [Member])	3 Months Ended		9 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Jun. 30, 2013
Accounts Receivable [Member]
Concentration Risk [Line Items]
Concentration Risk, Percentage	96.00%	98.00%
Sales Revenue, Goods, Net [Member]
Concentration Risk [Line Items]
Concentration Risk, Percentage	96.00%		97.00%

Inventories_Details

Inventories (Details) (USD $)	Dec. 31, 2014	Sep. 30, 2014
Inventory [Line Items]
Raw materials	$10,961,579	$2,860,060
Work in progress	1,238,089	1,316,664
Finished goods	6,503,542	1,316,482
Spare parts	2,005,602	1,932,193
Total	20,708,812	7,425,399
Corn [Member] | Forward Contracts [Member]
Inventory [Line Items]
Forward Corn Purchase Contracts	15,283,000
Distillers Grains [Member] | Forward Contracts [Member]
Inventory [Line Items]
Forward Sales Contracts	106,000
Related Party [Member] | Corn [Member] | Forward Contracts [Member]
Inventory [Line Items]
Forward Corn Purchase Contracts	$2,432,000

Derivative_Instruments_Details

Derivative Instruments (Details)	Dec. 31, 2014	Sep. 30, 2014
	bu	bu
Corn [Member]
Derivative [Line Items]
Nonmonetary Notional Amount of Price Risk Derivative Instruments Not Designated as Hedging Instruments, Sale Contracts	4,965,000	1,695,000
Nonmonetary Notional Amount of Price Risk Derivative Instruments Not Designated as Hedging Instruments, Purchase Contracts	5,515,000	4,460,000
Ethanol [Member]
Derivative [Line Items]
Nonmonetary Notional Amount of Price Risk Derivative Instruments Not Designated as Hedging Instruments, Sale Contracts	38,220,000	30,660,000
Nonmonetary Notional Amount of Price Risk Derivative Instruments Not Designated as Hedging Instruments, Purchase Contracts	5,670,000	11,970,000
Natural Gas [Member]
Derivative [Line Items]
Nonmonetary Notional Amount of Price Risk Derivative Instruments Not Designated as Hedging Instruments, Sale Contracts	0	150,000
Nonmonetary Notional Amount of Price Risk Derivative Instruments Not Designated as Hedging Instruments, Purchase Contracts	300,000	0

Derivative_Instruments_Balance

Derivative Instruments - Balance Sheet (Details) (USD $)	Dec. 31, 2014	Sep. 30, 2014
Derivatives, Fair Value [Line Items]
Restricted Cash and Cash Equivalents, Current	$1,493,294	$885,100
Commodity Contract [Member]
Derivatives, Fair Value [Line Items]
Restricted Cash and Cash Equivalents, Current	1,493,000	885,000
Commodity Derivative Instruments - Current [Member] | Not Designated as Hedging Instrument [Member] | Ethanol [Member]
Derivatives, Fair Value [Line Items]
Derivative Asset, Fair Value, Net	495,028	1,690,531
Derivative Liability, Fair Value, Net	0	0
Commodity Derivative Instruments - Current [Member] | Not Designated as Hedging Instrument [Member] | Corn [Member]
Derivatives, Fair Value [Line Items]
Derivative Asset, Fair Value, Net	361,043	0
Derivative Liability, Fair Value, Net	0	1,277,147
Commodity Derivative Instruments - Current [Member] | Not Designated as Hedging Instrument [Member] | Natural Gas [Member]
Derivatives, Fair Value [Line Items]
Derivative Asset, Fair Value, Net	31,600	0
Derivative Liability, Fair Value, Net	$0	$10,000

Derivative_Instruments_Income_

Derivative Instruments - Income Statement (Details) (USD $)	3 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Derivative Instruments, Gain (Loss) [Line Items]
Derivative Instruments, Gain (Loss) Recognized in Income, Net	$1,974,009	($182,990)
Interest Rate Swap [Member] | Cash Flow Hedging [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net		18,636
Interest Rate Swap [Member] | Interest Expense [Member] | Cash Flow Hedging [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net		662,597
Not Designated as Hedging Instrument [Member] | Corn [Member] | Cost of Sales [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Derivative Instruments, Gain (Loss) Recognized in Income, Net	-119,322	-1,704,802
Not Designated as Hedging Instrument [Member] | Ethanol [Member] | Sales [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Derivative Instruments, Gain (Loss) Recognized in Income, Net	-1,554,385	2,660,651
Not Designated as Hedging Instrument [Member] | Natural Gas [Member] | Cost of Sales [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Derivative Instruments, Gain (Loss) Recognized in Income, Net	$183,985	($1,516)

Fair_Value_Instruments_Details

Fair Value Instruments (Details) (USD $)	Dec. 31, 2014	Sep. 30, 2014
Corn [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Assets (Liabilities)	$361,043	($1,277,147)
Corn [Member] | Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Assets (Liabilities)	361,043	-1,277,147
Corn [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Assets (Liabilities)	361,043	-1,277,147
Corn [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Assets (Liabilities)	0	0
Corn [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Assets (Liabilities)	0	0
Ethanol [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Assets (Liabilities)	495,028	1,690,531
Ethanol [Member] | Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Assets (Liabilities)	495,028	1,690,531
Ethanol [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Assets (Liabilities)	495,028	1,690,531
Ethanol [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Assets (Liabilities)	0	0
Ethanol [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Assets (Liabilities)	0	0
Natural Gas [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Assets (Liabilities)	31,600	-10,000
Natural Gas [Member] | Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Assets (Liabilities)	31,600	-10,000
Natural Gas [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Assets (Liabilities)	31,600	-10,000
Natural Gas [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Assets (Liabilities)	0
Natural Gas [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Assets (Liabilities)	$0

Bank_Financing_Debt_Instrument

Bank Financing - Debt Instruments (Details) (Declining Note [Member], USD $)	Dec. 31, 2014	Feb. 27, 2014	Dec. 31, 2013
Declining Note [Member]
Debt Instrument [Line Items]
Debt Instrument, Interest Rate at Period End	3.24%
Long-term Debt	$0
Line of Credit Facility, Maximum Borrowing Capacity		5,000,000	26,000,000
Line of Credit Facility, Covenant, Maximum Capital Expenditures Per Year Without Prior Approval		$5,000,000	$4,000,000

Bank_Financing_Line_of_Credit_

Bank Financing - Line of Credit Facility (Details) (USD $)	Dec. 31, 2014	Sep. 30, 2014	Dec. 31, 2013	Feb. 29, 2012
Bank Financing [Abstract]
Line of Credit Facility, Current Borrowing Capacity				$15,000,000
Line of Credit Facility, Interest Rate at Period End	3.16%
Line of Credit Facility, Working Capital Covenant			15,000,000
Line of Credit Facility, Amount Outstanding	$0	$0

Leases_Details

Leases (Details) (Transportation Equipment [Member], USD $)	Dec. 31, 2014
Transportation Equipment [Member]
Operating Leased Assets [Line Items]
Operating Leases, Payments Due January 1, 2015 to December 31, 2015	$1,172,964
Operating Leases, Payments Due January 1, 2016 to December 31, 2016	1,172,964
Operating Leases, Payments Due January 1, 2017 to December 31, 2017	1,172,964
Operating Leases, Payments Due January 1, 2018 to December 31, 2018	975,829
Operating Leases, Future Minimum Payments Due	$4,494,721

Commitments_and_Contingencies_

Commitments and Contingencies (Details) (Pending Litigation [Member], USD $)	Dec. 31, 2014
Pending Litigation [Member]
Loss Contingencies [Line Items]
Estimated Settlement, Attorney Portion	$1,000,000

Uncertainties_Impacting_the_Et1

Uncertainties Impacting the Ethanol Industry and Our Future Operations (Details)	3 Months Ended
	Dec. 31, 2014
Sales Revenue, Goods, Net [Member] | Ethanol [Member]
Concentration Risk [Line Items]
Concentration Risk, Percentage	78.00%
Cost of Goods, Segment [Member] | Corn [Member]
Concentration Risk [Line Items]
Concentration Risk, Percentage	79.00%