Cardinal Ethanol (CRDE) 10-Q 7 Aug 17 2017 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Jun. 30, 2017	Aug. 07, 2017
Entity Information [Line Items]
Entity Registrant Name	Cardinal Ethanol LLC
Entity Central Index Key	1,352,081
Current Fiscal Year End Date	--09-30
Entity Filer Category	Non-accelerated Filer
Document Type	10-Q
Document Period End Date	Jun. 30, 2017
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q3
Amendment Flag	false
Entity Common Stock, Shares Outstanding		14,606

Balance Sheets

Balance Sheets - USD ($)	Jun. 30, 2017	Sep. 30, 2016
Current Assets
Cash	$ 9,687,682	$ 23,002,139
Restricted cash	892,193	1,460,772
Trade accounts receivable	13,792,398	11,574,847
Miscellaneous receivables	220,118	135,517
Inventories	14,422,420	12,093,469
Prepaid and other current assets	393,182	248,999
Commodity derivative instruments	168,969	14,100
Total current assets	39,576,962	48,529,843
Property, Plant, and Equipment
Property, plant, and equipment, net	108,520,186	104,461,078
Other Assets
Investment	1,096,237	938,251
Total other assets	1,096,237	938,251
Total Assets	149,193,385	153,929,172
Current Liabilities
Accounts payable	3,475,159	2,472,212
Accounts payable- corn	3,106,053	4,761,547
Accrued expenses	1,397,937	1,213,753
Commodity derivative instruments	592,994	341,050
Current maturities of long-term debt	3,341,366	2,888,290
Total current liabilities	11,913,509	11,676,852
Long-Term Debt, net of current maturities	13,699,323	11,932,063
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	52,668,340	59,408,044
Members' Equity	123,580,553	130,320,257
Total Liabilities and Members’ Equity	$ 149,193,385	$ 153,929,172

Balance Sheets (Parenthetical)

Balance Sheets (Parenthetical) - shares	Jun. 30, 2017	Sep. 30, 2016
Members' contributions, units issued and outstanding	14,606	14,606

Condensed Statements of Operati

Condensed Statements of Operations and Comprehensive Income (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Jun. 30, 2017	Mar. 31, 2016	Jun. 30, 2017	Jun. 30, 2016
Revenues	$ 50,900,700	$ 53,951,547	$ 168,428,966	$ 163,086,506
Cost of Goods Sold	50,647,521	49,487,044	155,115,697	152,481,876
Gross Profit	253,179	4,464,503	13,313,269	10,604,630
Operating Expenses	1,511,346	1,226,744	4,132,967	4,082,555
Operating Income (Loss)	(1,258,167)	3,237,759	9,180,302	6,522,075
Other Income (Expense)
Interest income	0	0	0	250
Interest expense	0	0	270,467	143,567
Miscellaneous income	20,576	16,490	51,911	41,799
Total	20,576	16,490	(218,556)	(101,518)
Net Income (Loss)	$ (1,237,591)	$ 3,254,249	$ 8,961,746	$ 6,420,557
Weight Average Units Outstanding - basic and diluted	14,606	14,606	14,606	14,606
Net Income Per Unit - basic and diluted	$ (85)	$ 223	$ 614	$ 440
Distributions Per Unit	$ 275	$ 230	$ 1,075	$ 1,030

Statements of Cash Flows (Unaud

Statements of Cash Flows (Unaudited) - USD ($)	9 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Cash Flows from Operating Activities
Net Income (Loss)	$ 8,961,746	$ 6,420,557
Adjustments to reconcile net income to net cash provided by operations:
Depreciation	7,711,431	6,849,622
Change in fair value of commodity derivative instruments	(1,975,046)	(4,020,591)
Non-cash dividend income	(157,986)	(114,757)
Change in operating assets and liabilities:
Restricted cash	568,579	1,050,446
Trade accounts receivables	(2,217,551)	1,601,435
Miscellaneous receivable	(84,601)	119,645
Inventories	(2,328,951)	(8,688,784)
Prepaid and other current assets	(144,184)	108,678
Commodity derivative instruments	2,072,121	1,806,543
Accounts payable	1,002,947	(346,134)
Accounts payable-corn	(1,655,494)	(1,529,862)
Accrued expenses	(853,442)	(572,836)
Net cash provided by operating activities	10,899,569	2,683,962
Cash Flows from Investing Activities
Capital expenditures	(4,948,318)	(75,629)
Payments for construction in progress	(5,784,595)	(5,492,013)
Net cash used for investing activities	(10,732,913)	(5,567,642)
Cash Flows from Financing Activities
Distributions paid	(15,701,450)	(15,044,180)
Proceeds from long-term debt	4,404,149	6,516,964
Payments on long-term debt	(2,183,812)	0
Net cash used for financing activities	(13,481,113)	(8,527,216)
Net Decrease in Cash	(13,314,457)	(11,410,896)
Cash – Beginning of Period	23,002,139	20,827,614
Cash – End of Period	9,687,682	9,416,718
Supplemental Cash Flow Information
Interest paid	402,194	143,567
Supplemental Disclosure of Noncash Investing and Financing Activities
Construction in process included in accrued expenses and accounts payable	$ 1,104,190	$ 649,776

Summary of Significant Accounti

Summary of Significant Accounting Policies	9 Months Ended
	Jun. 30, 2017
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, 2016 , 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 exceeding 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. Trade Accounts Receivable Credit terms are extended to customers in the normal course of business. The Company performs ongoing credit evaluations of its customers' financial condition and, generally, requires no collateral. Accounts receivable are recorded at their estimated net realizable value. Accounts are considered past due if payment is not made on a timely basis in accordance with the Company's credit terms. Amounts considered uncollectible are written off. The Company's estimate of the allowance for doubtful accounts is based on historical experience, its evaluation of the current status of receivables, and unusual circumstances, if any. 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 net realizable value. Net realizable value is the estimated selling prices in the normal course of business, less reasonably predictable costs. 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. 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. 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. Recently Issued Accounting Pronouncements Restricted Cash (Evaluating) In November 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2016-18, Restricted Cash, which amended Statement of Cash Flows (Topic 230) of the Accounting Standards Codification. The new guidance will require amounts generally described as restricted cash and restricted cash equivalents to be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The amendments will be effective for the Company beginning October 1, 2018. The Company is currently evaluating the impact that adoption of this guidance will have on its financial statements.

Concentrations

Concentrations	9 Months Ended
	Jun. 30, 2017
Concentrations [Abstract]
Concentrations	CONCENTRATIONS Two major customers accounted for approximately 96% of the outstanding accounts receivable balance at 6/30/2017 and 94% at 9/30/2016 . These same two customers accounted for approximately 96% of revenue for the three and nine month periods ended June 30, 2017 and June 30, 2016 .

Inventories

Inventories	9 Months Ended
	Jun. 30, 2017
Inventory Disclosure [Abstract]
Inventories	INVENTORIES Inventories consist of the following as of: June 30, 2017 (Unaudited) September 30, 2016 Raw materials $ 6,735,371 $ 4,677,336 Work in progress 1,213,039 1,252,919 Finished goods 4,005,969 3,638,427 Spare parts 2,468,041 2,524,787 Total $ 14,422,420 $ 12,093,469 In the ordinary course of business, the Company enters into forward purchase contracts for its commodity purchases and sales. Certain contracts that literally meet the definition of a derivative may be exempted from derivative accounting as normal purchases or normal sales. At June 30, 2017 , the Company had forward corn purchase contracts at various fixed prices for various delivery periods through April 2019 for approximately 2.5% of expected production needs for the next 22 months. Approximately 11.0% of the forward corn purchases were with related parties. 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 net realizable value evaluation with respect to inventory valuation, and has determined that no impairment existed at June 30, 2017 or September 30, 2016 . The Company has elected not to apply the normal purchase and sale exemption to its forward soybean contracts and therefore treats them as derivative instruments. At June 30, 2017 , the Company had forward dried distiller grains sales contracts for approximately 68.0% of expected production for the next 1 month at various fixed prices for delivery periods through July 2017 . At June 30, 2017 , the Company had forward corn oil contracts at various prices for delivery through July 2017 , which approximates 82.0% of expected production for that time period. Also, at June 30, 2017 , the Company had forward natural gas contracts for approximately 21.7% of expected purchases for the next 28 months at various prices for various delivery periods through October 2019 . Additionally, at June 30, 2017 , the Company had forward soybean purchase contracts for various delivery periods through March 2018 related to our current construction project which is intended to add grain receiving and train loading facilities and additional rail spurs, track and grain storage to provide the flexibility to receive and ship additional grain commodities.

Derivative Instruments

Derivative Instruments	9 Months Ended
	Jun. 30, 2017
Derivative Instruments [Abstract]
Derivative Instruments	DERIVATIVE INSTRUMENTS The Company enters into corn, ethanol, natural gas and soybean 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, natural gas and soybeans 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, natural gas, and soybean derivative instruments are included as a component of cost of goods sold. At June 30, 2017 , the Company had a net short (selling) position of 3,367,950 bushels of corn under derivative contracts used to hedge its forward corn contracts, corn inventory and ethanol sales. These corn derivatives are traded on the Chicago Board of Trade as of June 30, 2017 and are forecasted to settle for various delivery periods through May 2019 . At June 30, 2017 , the Company had a net long (buying) position of 6,720,000 gallons of ethanol under derivative contracts used to hedge its future ethanol sales. These ethanol derivatives are traded on the New York Mercantile Exchange and are forecasted to settle for various delivery periods through December 2017 . At June 30, 2017 , the Company also had a net short (selling) position of 255,000 bushels of soybeans under derivative contracts used to hedge its forward soybean contract purchases. These soybean derivatives are traded on the Chicago Board of Trade and are, as of June 30, 2017 , forecasted to settle for various delivery periods through July 2018 . These derivatives have not been designated as an effective hedge for accounting purposes. The following table provides balance sheet details regarding the Company's derivative financial instruments at June 30, 2017 : Instrument Balance Sheet Location Assets Liabilities Ethanol derivative contracts Commodity Derivative Instruments - Current $ — $ 3,780 Corn derivative contracts Commodity Derivative Instruments - Current $ — $ 420,098 Soybean derivative contracts Commodity Derivative Instruments - Current $ 168,969 $ 169,116 As of June 30, 2017 , the Company had approximately $892,000 cash collateral (restricted cash) related to ethanol, corn, natural gas and soybean derivatives held by three brokers. The following table provides balance sheet details regarding the Company's derivative financial instruments at September 30, 2016 : Instrument Balance Sheet Location Assets Liabilities Ethanol derivative contracts Commodity Derivative Instruments - Current $ — $ 188,475 Corn derivative contracts Commodity Derivative Instruments - Current $ — $ 152,575 Natural gas derivative contracts Commodity Derivative Instruments - Current $ 14,100 $ — As of September 30, 2016 , the Company had approximately $1,461,000 of cash collateral (restricted cash) related to ethanol and corn derivatives held by three brokers. 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 June 30, 2017 : Instrument Statement of Operations Location Amount Corn Derivative Contracts Cost of Goods Sold $ (113,169 ) Ethanol Derivative Contracts Revenues 13,855 Natural Gas Derivative Contracts Cost of Goods Sold 25,018 Soybean Derivative Contracts Cost of Good Sold 14,564 Totals $ (59,732 ) 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 June 30, 2016 : Instrument Statement of Operations Location Amount Corn Derivative Contracts Cost of Goods Sold $ 1,165,323 Ethanol Derivative Contracts Revenues (321,335 ) Natural Gas Derivative Contracts Cost of Goods Sold 210,738 Totals $ 1,054,726 The following table provides details regarding the gains from the Company's derivative instruments in the statements of operations, none of which are designated as hedging instruments for the nine months ended June 30, 2017 : Instrument Statement of Operations Location Amount Corn Derivative Contracts Cost of Goods Sold $ 443,427 Ethanol Derivative Contracts Revenues 1,360,415 Natural Gas Derivative Contracts Cost of Goods Sold 158,848 Soybean Derivative Contracts Cost of Goods Sold 12,356 Totals $ 1,975,046 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 nine months ended June 30, 2016 : Instrument Statement of Operations Location Amount Corn Derivative Contracts Cost of Goods Sold $ 4,172,024 Ethanol Derivative Contracts Revenues (99,434 ) Natural Gas Derivative Contracts Cost of Goods Sold (51,999 ) Totals $ 4,020,591

Fair Value Instruments

Fair Value Instruments	9 Months Ended
	Jun. 30, 2017
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 June 30, 2017 : Derivatives Carrying Amount Fair Value Level 1 Level 2 Level 3 Corn Derivative Contracts $ (420,098 ) $ (420,098 ) $ (506,662 ) $ 86,564 — Ethanol Derivative Contracts $ (3,780 ) $ (3,780 ) $ (3,780 ) — — Soybean Derivative Contracts (147 ) $ (147 ) 168,969 (169,116 ) — The following table provides information on those assets and liabilities measured at fair value on a recurring basis as of September 30, 2016 : Derivatives Carrying Amount Fair Value Level 1 Level 2 Level 3 Corn Derivative Contracts $ (152,575 ) $ (152,575 ) $ 174,969 (327,544 ) — Ethanol Derivative Contracts $ (188,475 ) $ (188,475 ) $ (188,475 ) — — Natural Gas Derivative Contracts $ 14,100 $ 14,100 $ 14,100 — — We determine the fair value of commodity futures derivative instruments utilizing Level 1 inputs by obtaining fair value measurements from an independent pricing service. The fair value measurements consider observable data that may include dealer quotes and live trading levels from the Chicago Board of Trade market and New York Mercantile Exchange. We determine the fair value of corn and soybean Level 2 instruments by model-based techniques in which all significant inputs are observable in the markets noted above.

Bank Financing

Bank Financing	9 Months Ended
	Jun. 30, 2017
Bank Financing [Abstract]
Bank Financing	BANK FINANCING The Company has a loan agreement consisting of four loans, the Term Loan, Declining Revolving Loan (Declining Loan), the Revolving Credit Loan and the Construction Loan 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. The loan agreement assigns an interest rate of LIBOR plus 290 basis points (2.9%) to each of the individual loans. The Revolving Credit Loan is assigned the one month LIBOR rate which changes on the first day of every month. The Term Loan, the Revolving Loan and the Construction Loan each have interest charged based on the ninety day (three month) LIBOR rate. The interest rate is assigned at the beginning of the ninety day period and not all of the loans have the same interest rate beginning and ending dates. On March 23, 2017, we executed the Tenth Amendment of First Amended and Restated Construction Loan Agreement to be effective as of February 28, 2017, which amends the First Amended and Restated Construction Loan Agreement dated June 10, 2013 (the "Amendment"). The primary purpose of the Amendment was to provide additional financing to fund a construction project which is adding grain receiving and train loading facilities and additional rail spurs, track and grain storage to provide the flexibility to receive and ship additional grain commodities (the Construction Loan). In connection therewith, we also executed a Disbursing Agreement, Construction Note and a Third Amendment of First Amended and Restated Construction Loan Mortgage, Security Agreement, Assignment of Leases and Rents and Fixture Financing Statement. The Amendment provides for a construction loan in the maximum principal amount of $10,000,000 with an interest rate equal to the 3-month LIBOR plus two hundred ninety basis points. The financing is secured by a mortgage on all of our real property and a security interest in all other assets, both tangible and intangible. The Amendment provides for monthly interest payments on the Construction Note during the draw period and then the principal balance of the construction advances is expected to be converted, on or before October 31, 2017, to term debt amortized over approximately seven years with a final maturity date of February 28, 2023. The Amendment provides for a minimum fixed charge coverage ratio of no less than 1.15:1.0 measured quarterly on a rolling four quarter average basis if our working capital is less than $25,000,000 for any reporting period. The Amendment also provides for a new debt service charge coverage ratio of no less than 1.25:1.0 measured quarterly on a rolling four quarter average basis, in lieu of the fixed charge coverage ratio, if our working capital is equal to or more that $25,000,000 . The minimum $15,000,000 working capital requirement remains in place from a prior amendment as well. The Amendment modifies the capital expenditures covenant to limit those expenditures to $7,000,000 during the 2017 fiscal year, returning the limit to $5,000,000 for subsequent fiscal years. The grain loading and shipping project is excluded from the calculation. Finally, the Amendment extends the termination date of the Revolving Credit Loan from February 28, 2017 to February 28, 2018 and amends the mortgage to add the additional 64 acres of land purchased in October 2016. Term Loan The interest rate on the Term Loan is based on the 3-month LIBOR plus two hundred ninety basis points. The interest rate on the Term Loan at June 30, 2017 was 4.05% and at September 30, 2016 was 3.75% There were borrowings in the amount of approximately $12,637,000 outstanding on the Term Loan at June 30, 2017 and approximately $14,820,000 outstanding at September 30, 2016 . The Term Loan requires monthly installment payments of principal and interest of approximately $282,700 which commenced on September 1, 2016, with a final maturity date of February 28, 2021. Declining Note The maximum availability of the Declining Loan is $5,000,000 with such amount to be available for working capital purposes. The interest rate on the Declining Loan is 3-month LIBOR plus two hundred ninety basis points. The interest rate on the Declining Loan at June 30, 2017 was 4.05% and at September 30, 2016 was 3.75% . There were no borrowings outstanding on the Declining Loan at June 30, 2017 or at September 30, 2016 . Revolving Credit Loan The Revolving Credit Loan 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 Loan is based on the 1-month LIBOR plus two hundred ninety basis points. The interest rate at June 30, 2017 was 3.96% and at September 30, 2016 was 3.44% . There were no borrowings outstanding on the Revolving Credit Loan at June 30, 2017 . Construction Loan The Construction Loan has a limit of $10,000,000 . The interest rate on the Construction Loan is based on the 3-month LIBOR plus two hundred ninety basis points and at June 30, 2017 was 4.11% . There were borrowings in the amount of approximately $4,404,000 outstanding on the Construction Loan at June 30, 2017 and no borrowings on the Construction Loan at September 30, 2016 . During the nine months ending June 30, 2017, we have capitalized $165,892 of interest related to the various improvement and construction projects. This compares with $102,229 capitalized in the same period ended June 30, 2016. Long-term debt, as discussed above, consists of the following at June 30, 2017 : Term note $ 12,636,540 Construction Loan $ 4,404,149 Less amounts due within one year 3,341,366 Net long-term debt $ 13,699,323 The estimated maturities of long-term debt at June 30, 2017 are as follows: July 1, 2017 to June 30, 2018 $ 3,341,366 July 1, 2018 to June 30, 2019 3,621,190 July 1, 2019 to June 30, 2020 3,771,848 July 1, 2020 to June 30, 2021 4,098,360 July 1, 2021 to June 30, 2022 644,938 Thereafter 1,562,987 Total long-term debt $ 17,040,689

Leases

Leases	9 Months Ended
	Jun. 30, 2017
Leases [Abstract]
Leases	LEASES At June 30, 2017 , the Company had the following operating lease minimum commitments for payments of rentals under leases which at inception had a non-cancellable term of more than one year: Total July 1, 2017 to June 30, 2018 $ 1,172,964 July 1, 2018 to June 30, 2019 389,347 Total minimum lease commitments $ 1,562,311

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Jun. 30, 2017
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	COMMITMENTS AND CONTINGENCIES Capital Projects The board of directors has approved a management proposal of capital projects for fiscal year 2017 to add a fermenter, an additional cooling tower cell and a beer-degasser. The projects are expected to cost approximately $5,000,000 . In connection with the projects, the Company has executed construction contracts. At June 30, 2017, the fermenter and cooling tower cell are complete and are in service. We are awaiting permit changes before we begin installation of the beer de-gasser. That project is expected to be complete by September 30, 2017. The board of directors has also approved a project to add grain loading facilities and additional rail track and grain storage. This project is expected to cost approximately $9,300,000 . These additions are intended to provide the flexibility to receive and ship additional grain commodities if desired. The Company obtained construction financing providing up to $10,000,000 in funding for this project. Presently, the project is nearing completion. We anticipate that these facilities will begin operations during the next fiscal quarter. See Note 6 for more disclosure regarding the Construction Loan. Legal Proceedings 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. In addition, on September 15, 2016, the United States District Court granted summary judgment finding that the patents were invalid due to inequitable conduct before the US Patent and Trademark Office by the inventors and their attorneys. A motion to reconsider the decision regarding inequitable conduct is pending In addition, an appeal regarding the current ruling on inequitable conduct has been filed. 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 Eth

Uncertainties Impacting the Ethanol Industry and Our Future Operations	9 Months Ended
	Jun. 30, 2017
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 82% of total revenues and corn costs average 78% 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	9 Months Ended
	Jun. 30, 2017
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.
Trade Accounts Receivable	Trade Accounts Receivable Credit terms are extended to customers in the normal course of business. The Company performs ongoing credit evaluations of its customers' financial condition and, generally, requires no collateral. Accounts receivable are recorded at their estimated net realizable value. Accounts are considered past due if payment is not made on a timely basis in accordance with the Company's credit terms. Amounts considered uncollectible are written off. The Company's estimate of the allowance for doubtful accounts is based on historical experience, its evaluation of the current status of receivables, and unusual circumstances, if any.
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 net realizable value. Net realizable value is the estimated selling prices in the normal course of business, less reasonably predictable costs.
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.
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.
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.
Description of New Accounting Pronouncements Not yet Adopted [Text Block]	Recently Issued Accounting Pronouncements Restricted Cash (Evaluating) In November 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2016-18, Restricted Cash, which amended Statement of Cash Flows (Topic 230) of the Accounting Standards Codification. The new guidance will require amounts generally described as restricted cash and restricted cash equivalents to be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The amendments will be effective for the Company beginning October 1, 2018. The Company is currently evaluating the impact that adoption of this guidance will have on its financial statements.

Inventories (Tables)

Inventories (Tables)	9 Months Ended
	Jun. 30, 2017
Inventory Disclosure [Abstract]
Schedule of Inventory	Inventories consist of the following as of: June 30, 2017 (Unaudited) September 30, 2016 Raw materials $ 6,735,371 $ 4,677,336 Work in progress 1,213,039 1,252,919 Finished goods 4,005,969 3,638,427 Spare parts 2,468,041 2,524,787 Total $ 14,422,420 $ 12,093,469

Derivative Instruments (Tables)

Derivative Instruments (Tables)	9 Months Ended
	Jun. 30, 2017
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 June 30, 2017 : Instrument Balance Sheet Location Assets Liabilities Ethanol derivative contracts Commodity Derivative Instruments - Current $ — $ 3,780 Corn derivative contracts Commodity Derivative Instruments - Current $ — $ 420,098 Soybean derivative contracts Commodity Derivative Instruments - Current $ 168,969 $ 169,116 As of June 30, 2017 , the Company had approximately $892,000 cash collateral (restricted cash) related to ethanol, corn, natural gas and soybean derivatives held by three brokers. The following table provides balance sheet details regarding the Company's derivative financial instruments at September 30, 2016 : Instrument Balance Sheet Location Assets Liabilities Ethanol derivative contracts Commodity Derivative Instruments - Current $ — $ 188,475 Corn derivative contracts Commodity Derivative Instruments - Current $ — $ 152,575 Natural gas derivative contracts Commodity Derivative Instruments - Current $ 14,100 $ —
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 June 30, 2017 : Instrument Statement of Operations Location Amount Corn Derivative Contracts Cost of Goods Sold $ (113,169 ) Ethanol Derivative Contracts Revenues 13,855 Natural Gas Derivative Contracts Cost of Goods Sold 25,018 Soybean Derivative Contracts Cost of Good Sold 14,564 Totals $ (59,732 ) 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 June 30, 2016 : Instrument Statement of Operations Location Amount Corn Derivative Contracts Cost of Goods Sold $ 1,165,323 Ethanol Derivative Contracts Revenues (321,335 ) Natural Gas Derivative Contracts Cost of Goods Sold 210,738 Totals $ 1,054,726 The following table provides details regarding the gains from the Company's derivative instruments in the statements of operations, none of which are designated as hedging instruments for the nine months ended June 30, 2017 : Instrument Statement of Operations Location Amount Corn Derivative Contracts Cost of Goods Sold $ 443,427 Ethanol Derivative Contracts Revenues 1,360,415 Natural Gas Derivative Contracts Cost of Goods Sold 158,848 Soybean Derivative Contracts Cost of Goods Sold 12,356 Totals $ 1,975,046 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 nine months ended June 30, 2016 : Instrument Statement of Operations Location Amount Corn Derivative Contracts Cost of Goods Sold $ 4,172,024 Ethanol Derivative Contracts Revenues (99,434 ) Natural Gas Derivative Contracts Cost of Goods Sold (51,999 ) Totals $ 4,020,591

Fair Value Instruments (Tables)

Fair Value Instruments (Tables)	9 Months Ended
	Jun. 30, 2017
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 June 30, 2017 : Derivatives Carrying Amount Fair Value Level 1 Level 2 Level 3 Corn Derivative Contracts $ (420,098 ) $ (420,098 ) $ (506,662 ) $ 86,564 — Ethanol Derivative Contracts $ (3,780 ) $ (3,780 ) $ (3,780 ) — — Soybean Derivative Contracts (147 ) $ (147 ) 168,969 (169,116 ) — The following table provides information on those assets and liabilities measured at fair value on a recurring basis as of September 30, 2016 : Derivatives Carrying Amount Fair Value Level 1 Level 2 Level 3 Corn Derivative Contracts $ (152,575 ) $ (152,575 ) $ 174,969 (327,544 ) — Ethanol Derivative Contracts $ (188,475 ) $ (188,475 ) $ (188,475 ) — — Natural Gas Derivative Contracts $ 14,100 $ 14,100 $ 14,100 — —

Bank Financing Schedule of Long

Bank Financing Schedule of Long Term Debt (Tables)	9 Months Ended
	Jun. 30, 2017
Debt Disclosure [Abstract]
Schedule of Debt	Long-term debt, as discussed above, consists of the following at June 30, 2017 : Term note $ 12,636,540 Construction Loan $ 4,404,149 Less amounts due within one year 3,341,366 Net long-term debt $ 13,699,323

Bank Financing Schedule of Matu

Bank Financing Schedule of Maturities of Long Term Debt (Tables)	9 Months Ended
	Jun. 30, 2017
Debt Disclosure [Abstract]
Schedule of Maturities of Long-term Debt	The estimated maturities of long-term debt at June 30, 2017 are as follows: July 1, 2017 to June 30, 2018 $ 3,341,366 July 1, 2018 to June 30, 2019 3,621,190 July 1, 2019 to June 30, 2020 3,771,848 July 1, 2020 to June 30, 2021 4,098,360 July 1, 2021 to June 30, 2022 644,938 Thereafter 1,562,987 Total long-term debt $ 17,040,689

Leases (Tables)

Leases (Tables)	9 Months Ended
	Jun. 30, 2017
Leases [Abstract]
Schedule of Future Minimum Payments for Capital and Operating Leases	At June 30, 2017 , the Company had the following operating lease minimum commitments for payments of rentals under leases which at inception had a non-cancellable term of more than one year: Total July 1, 2017 to June 30, 2018 $ 1,172,964 July 1, 2018 to June 30, 2019 389,347 Total minimum lease commitments $ 1,562,311

Summary of Significant Accoun22

Summary of Significant Accounting Policies Nature of Business (Details) gal in Millions	9 Months Ended
	Jun. 30, 2017gal
Ethanol [Member]
Product Information [Line Items]
Annual Production Capacity	120

Concentrations (Details)

Concentrations (Details) - Customer Concentration Risk [Member]	3 Months Ended		9 Months Ended	12 Months Ended
	Jun. 30, 2017	Mar. 31, 2016	Jun. 30, 2017	Sep. 30, 2016
Accounts Receivable [Member]
Concentration Risk [Line Items]
Concentration Risk, Percentage			96.00%	94.00%
Sales Revenue, Goods, Net [Member]
Concentration Risk [Line Items]
Concentration Risk, Percentage	96.10%	96.00%	96.00%

Inventories (Details)

Inventories (Details) - USD ($)	12 Months Ended
	Sep. 30, 2016	Jun. 30, 2017
Inventory [Line Items]
Raw materials	$ 4,677,336	$ 6,735,371
Work in progress	1,252,919	1,213,039
Finished goods	3,638,427	4,005,969
Spare parts	2,524,787	2,468,041
Total	$ 12,093,469	$ 14,422,420
Corn [Member]
Inventory [Line Items]
Derivative, Nonmonetary Notional Amount, Percent of Required Need, Coverage		2.50%
Long-term Purchase Commitment, Period	22 months
Distillers Grains [Member]
Inventory [Line Items]
Derivative, Nonmonetary Notional Amount, Percent of Required Need, Coverage		68.00%
Long-term Purchase Commitment, Period	1 month
Corn Oil [Member] [Member]
Inventory [Line Items]
Derivative, Nonmonetary Notional Amount, Percent of Required Need, Coverage		82.00%
Natural Gas [Member]
Inventory [Line Items]
Derivative, Nonmonetary Notional Amount, Percent of Required Need, Coverage		21.70%
Long-term Purchase Commitment, Period	28 months
Related Party [Member] | Corn [Member]
Inventory [Line Items]
Derivative, Nonmonetary Notional Amount, Percent of Required Need, Coverage		11.00%

Derivative Instruments (Details

Derivative Instruments (Details) - Short [Member] - Not Designated as Hedging Instrument [Member]	9 Months Ended
	Jun. 30, 2017bugal
Corn [Member]
Derivative [Line Items]
Derivative, Nonmonetary Notional Amount, Volume	3,367,950
Ethanol [Member]
Derivative [Line Items]
Derivative, Nonmonetary Notional Amount, Volume | gal	6,720,000
Soybean [Member]
Derivative [Line Items]
Derivative, Nonmonetary Notional Amount, Volume	255,000

Derivative Instruments - Balanc

Derivative Instruments - Balance Sheet (Details) - USD ($)	Jun. 30, 2017	Sep. 30, 2016
Derivatives, Fair Value [Line Items]
Good Faith and Margin Deposits with Broker-Dealers	$ 892,000	$ 1,461,000
Soybean [Member] | Commodity Contract [Member] | Not Designated as Hedging Instrument [Member]
Derivatives, Fair Value [Line Items]
Derivative Asset, Fair Value, Amount Not Offset Against Collateral	168,969
Derivative Liability, Fair Value, Amount Not Offset Against Collateral	169,116
Natural Gas [Member] | Commodity Contract [Member] | Not Designated as Hedging Instrument [Member]
Derivatives, Fair Value [Line Items]
Derivative Asset, Fair Value, Amount Not Offset Against Collateral		14,100
Derivative Liability, Fair Value, Amount Not Offset Against Collateral		0
Corn [Member] | Commodity Contract [Member] | Not Designated as Hedging Instrument [Member]
Derivatives, Fair Value [Line Items]
Derivative Asset, Fair Value, Amount Not Offset Against Collateral	0	0
Derivative Liability, Fair Value, Amount Not Offset Against Collateral	420,098	152,575
Ethanol [Member] | Commodity Contract [Member] | Not Designated as Hedging Instrument [Member]
Derivatives, Fair Value [Line Items]
Derivative Asset, Fair Value, Amount Not Offset Against Collateral	0	0
Derivative Liability, Fair Value, Amount Not Offset Against Collateral	$ 3,780	$ 188,475

Derivative Instruments - Income

Derivative Instruments - Income Statement (Details) - USD ($)	3 Months Ended		9 Months Ended
	Jun. 30, 2017	Mar. 31, 2016	Jun. 30, 2017	Jun. 30, 2016
Derivative Instruments, Gain (Loss) [Line Items]
Derivative Instruments, Gain (Loss) Recognized in Income, Net			$ (2,072,121)	$ (1,806,543)
Gain (Loss) on Price Risk Derivative Instruments Not Designated as Hedging Instruments	$ (59,732)	$ 1,054,726	1,975,046	4,020,591
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	(113,169)	1,165,323	443,427	4,172,024
Not Designated as Hedging Instrument [Member] | Ethanol [Member] | Sales [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Derivative Instruments, Gain (Loss) Recognized in Income, Net	13,855	(321,335)	1,360,415	(99,434)
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	25,018	$ 210,738	158,848	$ (51,999)
Not Designated as Hedging Instrument [Member] | Soybean [Member] | Cost of Sales [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Derivative Instruments, Gain (Loss) Recognized in Income, Net	$ 14,564		$ 12,356

Fair Value Instruments (Details

Fair Value Instruments (Details) - USD ($)	Jun. 30, 2017	Sep. 30, 2016
Corn [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Assets (Liabilities)	$ (420,098)	$ (152,575)
Corn [Member] | Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Assets (Liabilities)		(152,575)
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)	(506,662)	174,969
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)	86,564	(327,544)
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)	(3,780)	(188,475)
Ethanol [Member] | Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Assets (Liabilities)	(3,780)	(188,475)
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)	(3,780)	(188,475)
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
Soybean [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Assets (Liabilities)	(147)
Soybean [Member] | Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Assets (Liabilities)	(147)
Soybean [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)	168,969
Soybean [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)	(169,116)
Soybean [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
Natural Gas [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Assets (Liabilities)		14,100
Natural Gas [Member] | Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Assets (Liabilities)		14,100
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)		14,100
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 Instrumen

Bank Financing - Debt Instruments (Details)	3 Months Ended		9 Months Ended
	Jun. 30, 2017USD ($)a	Sep. 30, 2016USD ($)	Jun. 30, 2017USD ($)a	Jun. 30, 2016USD ($)
Debt Instrument [Line Items]
Debt Instrument, Term	7 years
Long-term Line of Credit		$ 0
Long-term Construction Loan	$ 10,000,000		$ 10,000,000
Long-term Debt, Maturities, Repayments of Principal in Next Rolling Twelve Months	3,341,366	2,888,290	3,341,366
Long-Term Debt, net of current maturities	13,699,323	11,932,063	13,699,323
Long-term Debt [Member]
Debt Instrument [Line Items]
Debt Instrument, Periodic Payment			282,700
Long-term Line of Credit		14,820,000
Line of Credit Facility, Fair Value of Amount Outstanding	12,636,540		12,636,540
Long-term Debt, Maturities, Repayments of Principal in Next Rolling Twelve Months	3,341,366		3,341,366
Long-Term Debt, net of current maturities	13,699,323		13,699,323
Long-term Debt, Maturities, Repayments of Principal in Next Rolling Twelve Months	3,341,366		3,341,366
Long-term Debt, Maturities, Repayments of Principal in Year Two	3,621,190		3,621,190
Long-term Debt, Maturities, Repayments of Principal in Rolling Year Three	3,771,848		3,771,848
Long-term Debt, Maturities, Repayments of Principal in Rolling Year Four	4,098,360		4,098,360
Long-term Debt, Maturities, Repayments of Principal in Rolling Year Five	644,938		644,938
Long-term Debt, Maturities, Repayments of Principal in Rolling after Year Five	1,562,987		1,562,987
Long-term Debt	17,040,689		17,040,689
Declining Note [Member]
Debt Instrument [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity		$ 5,000,000
Long-term Line of Credit	$ 0		$ 0
Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Debt Instrument, Basis Spread on Variable Rate		2.90%	2.90%
Debt Instrument, Interest Rate, Effective Percentage	3.96%	3.44%	3.96%
Line of Credit Facility, Maximum Borrowing Capacity	$ 15,000,000		$ 15,000,000
Long-term Line of Credit	$ 0		$ 0
Declining Note [Member]
Debt Instrument [Line Items]
Debt Instrument, Basis Spread on Variable Rate		2.90%	2.90%
Debt Instrument, Interest Rate, Effective Percentage	4.05%	3.75%	4.05%
Long-term Debt		$ 0
Mortgages [Member]
Debt Instrument [Line Items]
Area of Land | a	64		64
Construction Loans [Member]
Debt Instrument [Line Items]
Debt Instrument, Basis Spread on Variable Rate		2.90%	2.90%
Debt Instrument, Interest Rate, Effective Percentage	4.11%		4.11%
Long-term Construction Loan	$ 10,000,000		$ 10,000,000
Line of Credit Facility, Fair Value of Amount Outstanding	$ 4,404,149	$ 0	4,404,149
Interest Costs Capitalized			$ 165,892	$ 102,229
Long-term Debt [Member]
Debt Instrument [Line Items]
Debt Instrument, Basis Spread on Variable Rate		2.90%	2.90%
Debt Instrument, Interest Rate, Effective Percentage	4.05%	3.75%	4.05%
Working Capital requirement [Member]
Debt Instrument [Line Items]
Line of Credit Facility, Covenant, Working Capital	$ 25,000,000		$ 25,000,000
debt service charge [Member]
Debt Instrument [Line Items]
Line of Credit Facility, Covenant Terms			1.25:1.0
Fixed Charge Coverage Ratio [Member]
Debt Instrument [Line Items]
Line of Credit Facility, Covenant Terms			1.15:1.0
Annual Capital Expenditures [Member]
Debt Instrument [Line Items]
Line of Credit Facility, Covenant, Maximum Capital Expenditures Per Year Without Prior Approval	5,000,000		$ 5,000,000
Annual Capital Expenditures [Member] | Construction Loans [Member]
Debt Instrument [Line Items]
Line of Credit Facility, Covenant, Maximum Capital Expenditures Per Year Without Prior Approval	7,000,000		7,000,000
Minimum [Member] | Working Capital requirement [Member]
Debt Instrument [Line Items]
Line of Credit Facility, Covenant, Working Capital	$ 15,000,000		$ 15,000,000

Leases (Details)

Leases (Details) - Transportation Equipment [Member]	Jun. 30, 2017USD ($)
Operating Leased Assets [Line Items]
Operating Leases, Payments Due July 1, 2016 to June 31, 2017	$ 1,172,964
Operating Leases, Payments Due July 1, 2017 to June 31, 2018	389,347
Operating Leases, Future Minimum Payments Due	$ 1,562,311

Commitments and Contingencies (

Commitments and Contingencies (Details)	Jun. 30, 2017USD ($)
Pending Litigation [Member]
Loss Contingencies [Line Items]
Estimated Litigation Liability	$ 1,000,000

Commitments and Contingencies O

Commitments and Contingencies Other Contingencies (Details) - USD ($)	9 Months Ended	12 Months Ended
	Jun. 30, 2017	Sep. 30, 2016
Other Commitments [Line Items]
Long-term Construction Loan	$ 10,000,000
Cooling tower cell and beer-degasser [Member]
Other Commitments [Line Items]
Estimated Plant Expansion Costs		$ 5,000,000
Grain loading facilities, rail track, grain storage [Member]
Other Commitments [Line Items]
Estimated Plant Expansion Costs	9,300,000
Long-term Construction Loan	$ 10,000,000

Uncertainties Impacting the E33

Uncertainties Impacting the Ethanol Industry and Our Future Operations (Details)	9 Months Ended
	Jun. 30, 2017
Sales Revenue, Goods, Net [Member] | Ethanol [Member]
Concentration Risk [Line Items]
Concentration Risk, Percentage	82.00%
Cost of Goods, Segment [Member] | Corn [Member]
Concentration Risk [Line Items]
Concentration Risk, Percentage	78.00%