Document and Entity Information
Document and Entity Information Document - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Mar. 02, 2018 | Jun. 30, 2017 | |
Document Information [Line Items] | |||
Entity Registrant Name | HOMELAND ENERGY SOLUTIONS LLC | ||
Entity Central Index Key | 1,366,744 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Non-accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2017 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 64,585 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 0 |
Balance Sheets
Balance Sheets - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
CURRENT ASSETS | ||
Cash and cash equivalents | $ 29,568,227 | $ 14,168,643 |
Trading securities | 30,202,665 | 41,551,151 |
Accounts receivable | 1,260,436 | 6,258,503 |
Derivative instruments | 755,220 | 529,185 |
Inventory | 15,983,934 | 11,619,564 |
Prepaid and other | 2,875,753 | 2,708,029 |
Total current assets | 80,646,235 | 76,835,075 |
PROPERTY AND EQUIPMENT | ||
Land and improvements | 22,790,957 | 22,539,788 |
Buildings | 6,580,840 | 6,344,990 |
Equipment | 209,543,737 | 166,657,213 |
Construction in progress | 91,912 | 8,270,322 |
Gross Property and Equipment | 239,007,446 | 203,812,313 |
Less accumulated depreciation | 98,564,276 | 86,005,811 |
Total property and equipment | 140,443,170 | 117,806,502 |
OTHER ASSETS | ||
Utility rights, net of amortization of $1,455,605 and $1,319,217 | 852,424 | 988,812 |
Other assets | 3,356,239 | 3,154,510 |
Total Other Assets | 4,208,663 | 4,143,322 |
TOTAL ASSETS | 225,298,068 | 198,784,899 |
CURRENT LIABILITIES | ||
Accounts payable | 12,380,120 | 16,051,844 |
Due to former member | 30,000,000 | 30,000,000 |
Accrued expenses | 1,380,718 | 1,372,493 |
Current maturities of long term debt | 6,000,000 | 0 |
Total current liabilities | 49,760,838 | 47,424,337 |
COMMITMENTS AND CONTINGENCIES | ||
LONG-TERM LIABILITIES | ||
Term revolving loan | 23,936,683 | 0 |
Other Liabilities | 0 | 123,190 |
Total long-term liabilities | 23,936,683 | 123,190 |
MEMBERS' EQUITY, (64,585 units issued and outstanding) | 151,600,547 | 151,237,372 |
TOTAL LIABILITIES AND MEMBERS' EQUITY | $ 225,298,068 | $ 198,784,899 |
Balance Sheets Parenthetical
Balance Sheets Parenthetical - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Other Assets: | ||
Utility rights, net of amortization | $ 1,455,605 | $ 1,319,217 |
MEMBERS’ EQUITY | ||
Members Capital units issued and outstanding | 64,585 | 64,585 |
Statements of Operations
Statements of Operations - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Revenue | $ 256,525,281 | $ 272,938,079 | $ 269,970,953 |
Costs of Goods Sold | 236,834,163 | 235,786,636 | 242,628,553 |
Gross Profit | 19,691,118 | 37,151,443 | 27,342,400 |
Selling, general and administrative expenses | 3,525,736 | 3,736,798 | 3,618,821 |
Operating Income | 16,165,382 | 33,414,645 | 23,723,579 |
OTHER INCOME (EXPENSE) | |||
Interest expense | (318,288) | 0 | 0 |
Interest income | 88,558 | 10,641 | 9,322 |
Other Income | 896,698 | 1,059,177 | 778,382 |
Total Other Income (Expense) | 666,968 | 1,069,818 | 787,704 |
Net Income | $ 16,832,350 | $ 34,484,463 | $ 24,511,283 |
Basic & diluted net income per capital unit | $ 261 | $ 534 | $ 380 |
Distribution per capital unit | $ 255 | $ 499 | $ 362 |
Weighted average number of units outstanding for the calculation of basic & diluted net income per capital unit | 64,585 | 64,585 | 64,585 |
Statement of Members' Equity
Statement of Members' Equity | USD ($) |
Members' Equity at Dec. 31, 2014 | $ 147,849,311 |
Distribution | (23,379,770) |
Net Income | 24,511,283 |
Members' Equity at Dec. 31, 2015 | 148,980,824 |
Distribution | (32,227,915) |
Net Income | 34,484,463 |
Members' Equity at Dec. 31, 2016 | 151,237,372 |
Distribution | (16,469,175) |
Net Income | 16,832,350 |
Members' Equity at Dec. 31, 2017 | $ 151,600,547 |
Statements of Cash Flows
Statements of Cash Flows - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
CASH FLOWS FROM OPERATING ACTIVITIES | |||
Net Income | $ 16,832,350 | $ 34,484,463 | $ 24,511,283 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 12,707,225 | 11,386,606 | 10,697,083 |
Unrealized loss (gain) on risk management activities | 226,035 | (176,364) | (599,148) |
Realized and unrealized (gain) on trading securities | 631,352 | 820,530 | 275,789 |
Loss on disposal of property and equipment | 4,082 | 0 | 0 |
Change in working capital components: | |||
Accounts Receivable | 4,998,067 | (1,383,401) | (3,626,618) |
Inventory | (4,364,370) | (3,966,415) | 1,863,978 |
Prepaid expenses and other | 167,724 | 325,355 | 404,231 |
Accounts payable, accrued expenses and other | 2,459,248 | 834,729 | (2,739,357) |
Net cash provided by operating activities | 31,611,491 | 40,386,461 | 30,625,497 |
CASH FLOWS FROM INVESTING ACTIVITIES | |||
Purchase of trading securities | 11,979,838 | 0 | (8,234,031) |
Payments for equipment and construction in progress | (41,450,674) | (14,635,099) | (10,969,318) |
Decrease (increase) in other assets | 201,729 | (388,518) | 308,540 |
Net cash (used in) investing activities | (29,672,565) | (14,246,581) | (19,511,889) |
CASH FLOWS FROM FINANCING ACTIVITIES | |||
Distribution to members | (16,469,175) | (32,227,915) | (23,379,770) |
Payments for debt issuance costs | 70,167 | 0 | 0 |
Proceeds from long-term borrowings | 30,000,000 | 0 | 0 |
Net cash (used in) financing activities | 13,460,658 | (32,227,915) | (23,379,770) |
Net (decrease) in cash | 15,399,584 | (6,088,035) | (12,266,162) |
Cash and Cash Equivalents - Beginning | 14,168,643 | 20,256,678 | 32,522,840 |
Cash and Cash Equivalents - Ending | 29,568,227 | 14,168,643 | 20,256,678 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION | |||
Cash paid for interest | 187,696 | 0 | 0 |
SUPPLEMENTAL SCHEDULE OF NONCASH INVESTING AND FINANCING ACTIVITIES | |||
Accounts payable related to property and equipment | $ 2,548,456 | $ 8,701,393 | $ 93,000 |
Nature of Business and Signific
Nature of Business and Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2017 | |
Nature of Business and Significant Accounting Policies [Abstract] | |
Nature of Business and Significant Accounting Policies | Nature of Business and Significant Accounting Policies Nature of Business Homeland Energy Solutions, LLC (an Iowa Limited Liability Company) is located near Lawler, Iowa and was organized to pool investors for a 100 million gallon ethanol plant with distribution throughout the United States. The Company has capacity to produce in excess of 190 million gallons annually and sells distillers dried grains and corn oil as byproducts of ethanol production. Organization Homeland Energy Solutions, LLC is organized as an Iowa limited liability company. The members' liability is limited as specified in Homeland Energy Solutions' operating agreement and pursuant to the Iowa Revised Uniform Limited Liability Company Act. Significant Accounting Policies : Accounting Estimates Management uses estimates and assumptions in preparing these financial statements in accordance with United States 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. Actual results could differ from those estimates. Cash and Cash Equivalents The Company maintains its accounts primarily at one financial institution. At various times, the Company's cash balances may exceed amounts insured by the Federal Deposit Insurance Corporation. The Company has not experienced any losses in such accounts. Trading Securities Investments bought and held principally for the purpose of selling them in the near term are classified as trading securities. Trading securities are measured at fair value using prices obtained from pricing services. Any interest, dividends, and unrealized or realized gains and losses on the trading securities are recorded as part of other income (expense). At December 31, 2017 , trading securities consisted of corporate bonds and short term bond mutual funds with an approximate cost of $30,569,000 and fair value of $30,203,000 . At December 31, 2016 , trading securities consisted of corporate bonds and short term bond mutual funds with an approximate cost of $41,863,000 and fair value of $41,551,000 . For the fiscal years ended December 31, 2017 , 2016 , and 2015 the Company recorded interest, dividends and realized and unrealized gains and losses from these investments of approximately $553,000 , $821,000 , and $276,000 respectively. The Board of Directors voted to set aside up to $30 million in trading securities that will be used by the Company for the repurchase of 25,860 membership units held by Steve Retterath per the terms of an agreement with Mr. Retterath entered into on June 13, 2013 by the Company. Receivables Credit sales are made primarily to two customers and no collateral is required. The Company carries these accounts receivable at face amount with no allowance for doubtful accounts due to the historical collection rates on these accounts. Investments The Company has a less than 20% investment interest in Renewable Products Marketing Group, LLC (RPMG). This investment is being accounted for under the equity method of accounting under which the Company's share of net income is recognized as income in the Company's income statement and added to the investment account. The investment balance is included in other assets and the income recognized as other income. The investment is evaluated for indications of impairment on a regular basis, a loss would be recognized when the fair value is determined to be less than the carrying value. Inventories Inventories are generally valued at the lower of cost (first-in, first-out) or net realizable value. In the valuation of inventories and purchase commitments, net realizable value is defined as estimated selling price in the ordinary course of business less reasonably predictable costs of completion, disposal, and transportation. Property and Equipment Property and equipment are stated at cost. Significant additions and betterments are capitalized, while expenditures for maintenance and repairs are charged to operations when incurred. The Company uses the straight-line method of computing depreciation over the estimated useful lives as follows. Estimated Useful Life in Years Minimum Maximum Land Improvements 20 40 Buildings 10 40 Equipment 7 40 The Company reviews its property and equipment for impairment whenever events indicate that the carrying amount of the asset group may not be recoverable. If circumstances require a long-lived asset group be tested for possible impairment, the Company first compares undiscounted cash flows expected to be generated by an asset group to the carrying value of the asset group. If the carrying value of the long-lived asset group in not recoverable on an undiscounted cash flow basis, an 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. The Company has concluded that no impairment is necessary as of December 31, 2017 and 2016. Derivative Instruments The Company evaluates its contracts to determine whether the contracts are derivative instruments. Certain contracts that literally meet the definition of a derivative may be exempted from derivative accounting as normal purchases or normal sales. Normal purchases and normal sales are contracts that provide for the purchase or sale of something other than a financial instrument or derivative instrument that will be delivered in quantities expected to be used or sold over a reasonable period in the normal course of business. Contracts that meet the requirements of normal purchases or sales are documented as normal and exempted from the accounting and reporting requirements of derivative accounting. The Company enters into short-term cash, option and futures contracts as a means of securing purchases of corn, natural gas and sales of ethanol for the plant and managing exposure to changes in commodity and energy prices. All of the Company's derivatives are designated as non-hedge derivatives for accounting purposes, with changes in fair value recognized in net income. Although the contracts are economic hedges of specified risks, they are not designated or accounted for as hedging instruments. As part of its trading activity, the Company uses futures and option contracts through regulated commodity exchanges to manage its risk related to pricing of inventories. To reduce that risk, the Company generally takes positions using cash and futures contracts and options. Realized and unrealized gains and losses related to derivative contracts related to corn and natural gas are included as a component of cost of goods sold and derivative contracts related to ethanol are included as a component of revenues in the accompanying financial statements. The fair values of all contracts with the same counter party are presented net on the accompanying balance sheet as derivative instruments net of cash due from/to broker. Utility Rights Utility rights consist of payments to electric and natural gas companies for construction in aid of electric and gas lines to the facility but the Company retains no ownership rights to the assets. The utility rights are amortized on a straight-line basis over 15 years based on the estimate normal usage of such infrastructure. At December 31, 2017 , the Company anticipates the following amortization of utility rights for the years ended December 31: 2018 $ 136,000 2019 136,000 2020 136,000 2021 136,000 2022 136,000 Thereafter 172,000 Total amortization $ 852,000 Revenue and Cost Recognition Revenue from the sale of the Company's products is recognized at the time title to the goods and all risks of ownership transfer to the customers. This generally occurs upon shipment, loading of the goods or when the customer picks up the goods. Interest income is recognized as earned. Shipping costs incurred by the Company in the sale of ethanol and distiller grains are not specifically identifiable, and as a result, revenue from the sale of ethanol and distiller grains is recorded based on the net selling price reported to the Company from the marketer. Rail car lease costs incurred by the Company in the sale and shipment of distiller grain products are included in the cost of goods sold. Income Taxes The Company was formed under sections of the federal and state income tax laws which provide that, in lieu of corporate income taxes, the members separately account for their share of the Company's items of income, deductions, losses and credits. As a result of this election, no income taxes have been recognized in the accompanying financial statements. Management has evaluated the Company's tax positions under the Financial Accounting Standards Board issued guidance on accounting for uncertainty in income taxes and concluded that the Company had taken no uncertain tax positions that require adjustment to the financial statements to comply with the provisions of this guidance. Committed Shares to be Redeemed On June 13, 2013, the Company entered into an agreement with Steve Retterath, the Company's largest member, to repurchase and retire all of the membership units owned by Mr. Retterath. The Company agreed to close on this repurchase on, or before, August 1, 2013. The Company agreed to repurchase and retire 25,860 membership units owned by Mr. Retterath in exchange for $30 million , to be paid in two equal installments, payable at closing and on July 1, 2014. The transaction failed to close by the scheduled date due to objections by Mr. Retterath. Due to all conditions of the agreement being met prior to, or on, August 1, 2013, the Company believes that it has a binding agreement with Mr. Retterath; as such the commitment to repurchase and retire the membership units is reflected in the financial statements as a liability as these shares became mandatorily redeemable on June 13, 2013. No distributions have been paid to Mr. Retterath since the time of the original expected closing date of August 1, 2013. Net Income per Unit Basic and 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. Prior to, or on, August 1, 2013, the Company believes it has a binding agreement with Steve Retterath to repurchase and retire all 25,860 membership units owned by Mr. Retterath. These membership units have thus been excluded in the determination of net income per unit as presented in the Statement of Operations. The Company is currently involved in litigation with Mr. Retterath. There is potential that Mr. Retterath will continue as a unit holder upon conclusion of the litigation and said membership units would not be redeemed under the repurchase agreement. If the units are not redeemed, basic and diluted net income per unit, including the 25,860 units, for the twelve months ended December 31, 2017 , 2016 and 2015 would be approximately $186 , $381 , and $271 , respectively. Operating Segment The Company uses the "management approach" for reporting information about segments in annual and interim financial statements. The management approach is based on the way the chief operating decision-maker organizes segments within a company for making operating decisions and assessing performance. Reportable segments are based on products and services, geography, legal structure, management structure and any other manner in which management disaggregates a company. Based on the "management approach" model, the Company has determined that its business is comprised of a single operating segment. Environmental Liabilities The Company's operations are subject to environmental laws and regulations adopted by various governmental authorities in the jurisdiction in which it operates. These laws require the Company to investigate and remediate the effects of the release or disposal of materials at its locations. Accordingly, the Company has adopted policies, practices and procedures in the areas of pollution control, occupational health and the production, handling, storage and use of hazardous materials to prevent material environmental or other damage, and to limit the financial liability which could result from such events. Environmental liabilities are recorded when the Company's liability is probable and the costs can be reasonably estimated. No expense or liability, including asset retirement obligations, for environmental liabilities has been recorded for the years ended December 31, 2017 , 2016 , or 2015. Fair Value Financial instruments include cash and equivalents, trading securities, accounts receivable, derivative instruments, accounts payable, accrued expenses and long-term debt. The fair value of trading securities and derivative financial instruments is based on quoted market prices (see Note 8). The fair value of other current financial instruments is estimated to approximate carrying value due to the short-term nature of these instruments (Level 3). The fair value of long-term debt is estimated to approximate carrying value due to the short period of time held and the fixed rate approximating available market rates as of year-end (Level 3). Risks and Uncertainties The Company has certain risks and uncertainties that it will experience 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, distiller grains and corn oil to customers primarily located in the United States. Corn for the production process is supplied to the plant primarily from local agricultural producers and from purchases on the open market. For the year ended December 31, 2017 , ethanol sales averaged approximately 81% of total revenues, while approximately 14% of revenues were generated from the sale of distiller grains and 5% of revenues were generated from the sale of corn oil. For the year ended December 31, 2017 , corn costs averaged approximately 76% of cost of goods sold. The Company's operating and financial performance is largely driven by the prices at which it sells ethanol and the net expense of corn. The price of ethanol is influenced by factors such as supply and demand, weather, government policies and programs, and unleaded gasoline and the petroleum markets. 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, and government policies and programs. The Company's risk management program is used to protect against the price volatility of these commodities. Recent & Pending Accounting Pronouncements The Company is currently evaluating the following new accounting pronouncements and their potential impact, if any, on our financial statements: In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash (a consensus of the FASB Emerging Issues Task Force), which provides guidance on the presentation of restricted cash or restricted cash equivalents in the statement of cash flows. For public companies, these amendments are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. ASU 2016-18 must be applied using a retrospective transition method with early adoption permitted. The Company adopted this guidance in its financial statements as of January 1, 2017 with no material impact on the statement of cash flows for the period ended December 31, 2017. In February 2016, FASB issued ASU No. 2016-02 "Leases” ("ASU 2016-02"). ASU 2016-02 requires the recognition of lease assets and lease liabilities by lessees for all leases greater than one year in duration and classified as operating leases under previous GAAP. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, and for interim periods within that fiscal year. The Company is currently evaluating the impact of its pending adoption of the new standard on the financial statements. In May 2014, the FASB issued ASU No. 2014-09, "Revenue from Contracts with Customers." This ASU supersedes the revenue recognition requirements in "Accounting Standard Codification 605 - Revenue Recognition" and most industry-specific guidance. The standard requires that entities recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which a company expects to be entitled in exchange for those goods or services. This ASU is effective for fiscal years beginning after December 15, 2017, and for interim periods within that fiscal year. Although early application as of the original date is permitted, the Company will adopt ASU No. 2014-09 and the related ASUs on January 1, 2018. The Company has evaluated the effect of this standard as well as its existing contracts with customers and it plans to use the modified retrospective method. Under the modified retrospective method, the Company will present revenue under the new method required by ASU No. 2014-09 beginning with first quarter 2018. The impact of this standard, other than disclosures, is expected to be minimal. |
Inventory
Inventory | 12 Months Ended |
Dec. 31, 2017 | |
Inventory [Abstract] | |
Inventory | INVENTORY Inventory consisted of the following as of December 31, 2017 and 2016 . 2017 2016 Raw Materials $ 10,692,802 $ 8,489,218 Work in Process 1,827,414 1,900,387 Finished Goods 3,463,718 1,229,959 Totals $ 15,983,934 $ 11,619,564 |
Debt
Debt | 12 Months Ended |
Dec. 31, 2017 | |
Debt [Abstract] | |
Debt | DEBT Master Loan Agreement with Home Federal Savings Bank On June 29, 2017, the Company amended and restated the Master Loan Agreement with Home Federal Savings Bank ("Home Federal"), amending the term revolving loan to provide funding to operate the plant and establishing a term loan to help fund the Company's $42 million expansion project. In return, the Company entered into agreements providing Home Federal a security interest in substantially all personal property located on Company property, including the current expansion project. The Company currently has two loans with Home Federal, a term revolving loan and a term loan. Term Revolving Loan Under the terms of the Second Supplement to the Master Loan Agreement, dated June 29, 2017, the Company has a $30 million term revolving loan which has a maturity date of December 31, 2022. Interest on the term revolving loan is due monthly and accrues at a rate equal to the one month LIBOR plus 310 basis points, 4.34% on December 31, 2017. There was no balance outstanding on the term revolving loan and $30 million available to be drawn as of December 31, 2017. Term Debt Under the terms of the Fourth Supplement to the Master Loan Agreement, dated June 29, 2017, the Company has a $30 million term loan which has a maturity date of December 31, 2022. Interest on the term loan is at a fixed rate of 4.79% . The Company is required to make monthly interest payments beginning July 1, 2017 and bi-annual principal payments of $3 million beginning on June 30, 2018. The long-term portion of the outstanding debt is presented net of unamortized debt issuance costs of $63,317 as of December 31, 2017. At December 31, 2017, the Company had the following debt maturities on the term loan for the twelve month periods ended December 31: 2018 $ 6,000,000 2019 6,000,000 2020 6,000,000 2021 6,000,000 2022 6,000,000 Total principal payments $ 30,000,000 Covenants During the term of the loans, the Company is subject to certain financial covenants at various times calculated monthly, quarterly or annually, including restriction of the payment of dividends and capital expenditures and maintenance of certain financial ratios including minimum working capital and a fixed charge ratio as defined by the Master Loan Agreement. Failure to comply with the protective loan covenants or maintain the required financial ratios may cause acceleration of the outstanding principal balances on the loans and/or the imposition of fees, charges or penalties. The Company is in compliance with all debt covenants as of December 31, 2017. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2017 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | RELATED PARTY TRANSACTIONS Due to Former Member On June 13, 2013, the Company entered into an agreement with Steve Retterath, the Company's largest member, to repurchase and retire all of the units owned by Mr. Retterath. The Company agreed to close on this repurchase on or before August 1, 2013. The Company agreed to repurchase and retire 25,860 memberships units owned by Mr. Retterath in exchange for $30 million , to be paid in two equal installments payable at closing and on July 1, 2014. The transaction failed to close by the scheduled date due to objections by Mr. Retterath. The Company believes that it has a binding agreement with Mr. Retterath. On August 14, 2013, the Company filed a lawsuit against Mr. Retterath in Iowa state court to enforce the terms of the repurchase agreements. The Company is asking the Iowa court to require Mr. Retterath to complete the repurchase agreement pursuant to its terms. Mr. Retterath contends that he is not bound by the agreement. The Company's position is as of the closing date, Mr. Retterath is no longer the equitable owner of any membership units in the Company. As a result, the Company has recorded a $30 million short-term liability related to the amount the Company agreed to pay Mr. Retterath to repurchase his membership units and has correspondingly reduced members' equity on its balance sheet. If the Company is ultimately unsuccessful in its lawsuit against Mr. Retterath, the Company will reevaluate the accounting considerations made during the period of time that the lawsuit is pending. Other Matters The Company purchases corn and materials from members of its Board of Directors who own or manage elevators or are local producers of corn. Purchases during the years ended December 31, 2017 , 2016 and 2015 from these companies and individuals totaled approximately $10,721,000 , $10,892,000 and $5,977,000 , respectively. Amounts due to those members was $3,207 and $0 , as of December 31, 2017 and 2016 , respectively. |
Commitments, Contingencies and
Commitments, Contingencies and Agreements | 12 Months Ended |
Dec. 31, 2017 | |
Commitments, Contingencies and Agreements [Abstract] | |
Commitments and Contingencies and Agreements | COMMITMENTS, CONTINGENCIES AND AGREEMENTS Ethanol, corn oil, and distiller grains marketing agreements and major customers The Company has entered into a marketing agreement with RPMG, a related party, to sell all ethanol produced at the plant at a mutually agreed on price, less commission and transportation charges. As of December 31, 2017 , the Company had no commitments to sell any of its produced gallons of ethanol at fixed prices and 48 million gallons at basis price levels indexed against exchanges for delivery through March 31, 2018. The Company has also entered into a marketing agreement with RPMG to sell all corn oil produced at the plant at a mutually agreed on price, less marketing fees and transportation charges. As of December 31, 2017 , the Company had commitments to sell approximately 5.1 million pounds at various fixed and basis price levels indexed against exchanges for delivery throughout the first quarter of 2018. The Company also has an investment in RPMG, LLC, included in other assets, totaling approximately $2,330,000 and $2,302,000 as of December 31, 2017 and 2016 . The Company has entered into a marketing agreement to sell all distiller grains produced at the plant to CHS, an unrelated party, at a mutually agreed on price, less commission and transportation charges. The agreement calls for automatic renewal for successive one-year terms unless 90-day prior written notice is given before the current term expires in April, 2018; no such written notice has been given. As of December 31, 2017 , the Company had approximately 38,000 tons of distiller grains commitments for delivery through March 2018 at various fixed prices. All above sales commitments are accounted for as normal sales, and accordingly, have not been marked to market. Sales and marketing fees related to the agreements in place for the years ended December 31, 2017 , 2016 and 2015 were as follows: 2017 2016 2015 Sales ethanol - RPMG $ 207,344,000 $ 215,380,000 $ 201,978,000 Sales distiller grains 36,393,000 45,969,000 59,183,000 Sales corn oil - RPMG 12,789,000 11,589,000 8,810,000 Marketing fees ethanol - RPMG $ 250,000 $ 187,000 $ 169,000 Marketing fees distiller grains 663,000 777,000 787,000 Marketing fees corn oil - RPMG 52,000 76,000 60,000 2017 2016 Amount due from RPMG $ 236,000 $ 4,717,000 Amount due from CHS 900,000 1,329,000 At December 31, 2017 , the Company had approximately $9,646,000 in outstanding corn purchase commitments for bushels at various prices and approximately 5,770,000 bushels of unpriced corn purchase commitments through March 2019 accounted for under the normal purchase exclusion. As of December 31, 2017, the Company had approximately 645,000 bushels with approximate market value of $2,129,000 of deferred corn. As of December 31, 2016, the Company had approximately 522,000 bushels with approximate market value of $1,809,000 of deferred corn. The Company has commitments for minimum purchases of various utilities such as natural gas and electricity over the next two years, accounted for under the normal purchase exclusion, which are anticipated to approximate the following for the years ending December 31: 2018 3,787,000 2019 947,000 Total anticipated commitments $ 4,734,000 As of December 31, 2017, the Company had locked in place approximately 5,000 decatherms of natural gas at fixed prices through January 31, 2018. No fixed price natural gas was committed as of December 31, 2016. |
Lease Obligations
Lease Obligations | 12 Months Ended |
Dec. 31, 2017 | |
Lease Obligations [Abstract] | |
Lease Obligations | LEASE OBLIGATIONS The Company leases rail cars and rail moving equipment with original terms up to 5 years. The Company is obligated to pay costs of insurance, taxes, repairs and maintenance pursuant to terms of the leases. Rent expense incurred for the operating leases during the years ended December 31, 2017 , 2016 and 2015 was approximately $1,577,000 , $1,810,000 and $1,608,000 . At December 31, 2017 , the Company had the following approximate minimum rental commitments under non-cancelable operating leases for the years ended December 31: 2018 $ 1,269,000 2019 1,127,000 2020 1,127,000 2021 1,127,000 2022 412,000 Total lease commitments $ 5,062,000 |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2017 | |
Employee Benefit Plans [Abstract] | |
Employee Benefit Plans | EMPLOYEE BENEFIT PLANS On January 1, 2016, the Company adopted a 401k retirement plan which provides retirement savings options for all eligible employees. Previously, the Company utilized a Simple IRA Adoption Agreement to provide retirement savings options for all eligible employees. Employees meeting certain eligibility requirements can participate in the plan. The Company makes a matching contribution based on the participants' eligible wages. For the years ended December 31, 2017 , 2016 and 2015, the Company made matching contributions of approximately $274,000 , $130,000 and $91,000 , respectively. |
Derivative Instruments
Derivative Instruments | 12 Months Ended |
Dec. 31, 2017 | |
Derivative Instruments [Abstract] | |
Derivative Instruments | DERIVATIVE INSTRUMENTS The Company's activities expose it to a variety of market risks, including the effects of changes in commodity prices. These financial exposures are monitored and managed by the Company as an integral part of its overall risk-management program. The Company's risk management program focuses on the unpredictability of financial and commodities markets and seeks to reduce the potentially adverse effects that the volatility of these markets may have on its operating results. To reduce price risk caused by market fluctuations, the Company generally follows a policy of using exchange traded futures and options contracts to reduce its net position of merchandisable agricultural commodity inventories and forward cash purchase and sales contracts and uses exchange traded futures and options contracts to reduce price risk. Exchange-traded futures contracts are valued at market price. Changes in market price of exchange traded futures and options contracts related to corn and natural gas are recorded in costs of goods sold and changes in market prices of contracts related to the sale of ethanol, if applicable, are recorded in revenues. The Company uses futures or options contracts to fix the purchase price of anticipated volumes of corn to be purchased and processed in a future month. The Company's plant will grind approximately 65 million bushels of corn per year. During the previous period and over the next 12 months, the Company has hedged and anticipates hedging between 5% and 60% of its anticipated monthly grind. At December 31, 2017 , the Company has hedged portions of its anticipated monthly purchases for corn averaging approximately 10% of its anticipated monthly grind over the next twelve months. Unrealized gains and losses on non-exchange traded forward contracts are deemed "normal purchases or sales" under authoritative accounting guidance, as amended and, therefore, are not marked to market in the Company's financial statements. The following table represents the approximate amount of realized and unrealized gains (losses) and changes in fair value recognized in earnings on commodity contracts for years ended December 31, 2017 , 2016 , and 2015 and the fair value of derivatives as of December 31, 2017 and 2016 : Income Statement Classification Realized Gain (Loss) Change In Unrealized Gain (Loss) Total Gain (Loss) Derivatives not designated as hedging instruments: Commodity contracts for the year ended December 31, 2017. Cost of Goods Sold $ 3,467,000 $ 317,000 $ 3,784,000 Total $ 3,467,000 $ 317,000 $ 3,784,000 Derivatives not designated as hedging instruments: Commodity contracts for the year ended December 31, 2016. Cost of Goods Sold $ 4,626,000 $ (443,000 ) $ 4,183,000 Total $ 4,626,000 $ (443,000 ) $ 4,183,000 Derivatives not designated as hedging instruments: Commodity contracts for the year ended December 31, 2015. Cost of Goods Sold $ 1,574,000 $ 394,000 $ 1,968,000 Total $ 1,574,000 $ 394,000 $ 1,968,000 Balance Sheet Classification December 31, 2017 December 31, 2016 Futures and option contracts In gain position $ 305,000 $ 78,000 In loss position (7,000 ) (59,000 ) Cash held by broker 457,000 510,000 Current Asset $ 755,000 $ 529,000 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Measurements [Abstract] | |
Fair Value Measurements | FAIR VALUE MEASUREMENTS Financial assets and liabilities carried at fair value will be classified and disclosed in one of the following three categories: Level 1 : Valuations for assets and liabilities traded in active markets from readily available pricing sources for market transactions involving identical assets or liabilities. Level 2 : Valuations for assets and liabilities traded in less active dealer or broker markets. Valuations are obtained from third-party pricing services for identical or similar assets or liabilities. Level 3 : Valuations incorporate certain assumptions and projections in determining the fair value assigned to such assets or liabilities. A description of the valuation methodologies used for instruments measured at fair value, including the general classification of such instruments pursuant to the valuation hierarchy, is set forth below: Trading securities : Trading securities consisting of corporate bonds and short term bond mutual funds are reported at fair value utilizing Level 1 inputs. Trading securities are measured at fair value using prices obtained from pricing services. Derivative financial instruments : Commodity futures and exchange-traded commodity options contracts are reported at fair value utilizing Level 1 inputs. For these contracts, the Company obtains fair value measurements from an independent pricing service. The fair value measurements consider observable data that may include dealer quotes and live trading levels from the CBOT and NYMEX markets. The following table summarizes financial assets and financial liabilities measured at fair value on a recurring basis as of December 31, 2017 and December 31, 2016 , segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value: Total Level 1 Level 2 Level 3 Trading Securities December 31, 2017 Assets $ 30,203,000 $ 30,203,000 $ — $ — December 31, 2016 Assets $ 41,551,000 $ 41,551,000 — — Derivative financial instruments December 31, 2017 Assets $ 305,000 $ 305,000 $ — $ — Liabilities (7,000 ) (7,000 ) — — December 31, 2016 Assets $ 78,000 $ 78,000 $ — $ — Liabilities (59,000 ) (59,000 ) — — |
Ligitagion Matters (Notes)
Ligitagion Matters (Notes) | 12 Months Ended |
Dec. 31, 2017 | |
Loss Contingency, Information about Litigation Matters [Abstract] | |
Legal matters and Contingencies | LITIGATION MATTERS Retterath In relation to the repurchase agreement discussed in Note 4, on August 1, 2013 Mr. Retterath filed a lawsuit against the Company along with several directors, the Company's former CEO, CFO, COO, a former director and the Company's outside legal counsel in Florida state court. In August 2016, this lawsuit was voluntarily dismissed without prejudice by the Retteraths. On August 14, 2013, the Company filed a lawsuit in Iowa state court to enforce the repurchase agreement the Company entered into with Mr. Retterath. No distributions have been paid to Mr. Retterath since the time of the original expected closing date of August 1, 2013. On June 15, 2017, the Iowa Court ruled in favor of Homeland that the repurchase agreement was valid and directed Mr. Retterath to perform his obligations under the repurchase agreement by August 1, 2017. Mr. Retterath subsequently filed various motions with the Iowa Court and was granted a stay regarding his obligation to perform the repurchase agreement while the court considered his post trial motions. The Company is not currently able to predict the outcome of the litigation with any degree of certainty. GS Cleantech Corporation On August 9, 2013, GS Cleantech Corporation (GS Cleantech), a subsidiary of Greenshift Corporation, filed a complaint against the Company alleging that the Company's operation of a corn oil extraction process licensed by the Company infringes patent rights claimed by GS Cleantech. GS Cleantech seeks royalties, damages and potentially triple damages associated with the alleged infringement, as well as attorney's fees from the Company. The Company filed a motion for summary judgment which was granted by the Court. The Company expects GS Cleantech will appeal this decision. The Company has filed an answer and counterclaims claiming invalidity of the patents, noninfringement, and inequitable conduct. The Company is not currently able to predict the outcome of the litigation with any degree of certainty. |
Quarterly Financial Data (Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Data (Unaudited) [Abstract] | |
Quarterly Financial Data (Unaudited) | QUARTERLY FINANCIAL DATA (UNAUDITED) Summary quarterly results for the years ended December 31, 2017 , 2016 and 2015 are as follows: 2017 First Quarter Second Quarter Third Quarter Fourth Quarter Total Revenues $ 63,156,498 $ 71,505,612 $ 59,680,650 $ 62,182,521 Gross Profit 5,135,045 6,741,476 7,528,111 286,486 Operating Income (Loss) 3,840,725 6,008,641 6,721,339 (405,323 ) Net Income (Loss) 4,154,127 6,227,065 6,797,340 (346,182 ) Basic & diluted earnings per unit $ 64 $ 96 $ 105 $ (5 ) 2016 First Quarter Second Quarter Third Quarter Fourth Quarter Total Revenues $ 61,310,749 $ 70,146,120 $ 64,675,851 $ 76,805,359 Gross Profit 2,578,236 9,068,138 9,630,522 15,874,547 Operating Income 1,743,781 8,331,826 8,503,535 14,835,503 Net Income 2,473,366 8,741,240 8,671,364 14,598,493 Basic & diluted earnings per unit $ 38 $ 135 $ 134 $ 226 2015 First Quarter Second Quarter Third Quarter Fourth Quarter Total Revenues $ 61,670,033 $ 72,749,790 $ 67,305,573 $ 68,245,557 Gross Profit 2,906,247 9,225,176 9,223,725 5,987,252 Operating Income 1,961,974 8,299,991 8,435,936 5,025,678 Net Income 2,592,159 8,345,300 8,612,666 4,961,158 Basic & diluted earnings per unit $ 40 $ 129 $ 133 $ 77 |
Group Insurance (Notes)
Group Insurance (Notes) | 12 Months Ended |
Dec. 31, 2017 | |
Group Insurance [Abstract] | |
Captive Insurance [Text Block] | 12. GROUP INSURANCE The Company participates, along with other plants in the industry, in a group captive insurance company (Captive). The Captive insures losses related to workman's compensation, commercial property and general liability. The Captive reinsures catastrophic losses for all participants, including the Company, in excess of predetermined amounts. The Company's premiums are accrued by a charge to income for the period to which the premium relates and is remitted by the Company's insurer to the captive reinsurer. These premiums are structured such that the Company has made a prepaid collateral deposit estimated for losses related to the above coverage. The Captive insurer has estimated and collected an amount in excess of the estimated losses but less than the catastrophic loss limit insured by the Captive. The Company cannot be assessed over the amount in the collateral fund. |
Accounting Policies
Accounting Policies | 12 Months Ended |
Dec. 31, 2017 | |
Nature of Business and Significant Accounting Policies [Abstract] | |
Accounting Estimates | Accounting Estimates Management uses estimates and assumptions in preparing these financial statements in accordance with United States 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. Actual results could differ from those estimates. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company maintains its accounts primarily at one financial institution. At various times, the Company's cash balances may exceed amounts insured by the Federal Deposit Insurance Corporation. The Company has not experienced any losses in such accounts. |
Trading Securities | Trading Securities Investments bought and held principally for the purpose of selling them in the near term are classified as trading securities. Trading securities are measured at fair value using prices obtained from pricing services. Any interest, dividends, and unrealized or realized gains and losses on the trading securities are recorded as part of other income (expense). At December 31, 2017 , trading securities consisted of corporate bonds and short term bond mutual funds with an approximate cost of $30,569,000 and fair value of $30,203,000 . At December 31, 2016 , trading securities consisted of corporate bonds and short term bond mutual funds with an approximate cost of $41,863,000 and fair value of $41,551,000 . For the fiscal years ended December 31, 2017 , 2016 , and 2015 the Company recorded interest, dividends and realized and unrealized gains and losses from these investments of approximately $553,000 , $821,000 , and $276,000 respectively. The Board of Directors voted to set aside up to $30 million in trading securities that will be used by the Company for the repurchase of 25,860 membership units held by Steve Retterath per the terms of an agreement with Mr. Retterath entered into on June 13, 2013 by the Company. |
Receivables | Receivables Credit sales are made primarily to two customers and no collateral is required. The Company carries these accounts receivable at face amount with no allowance for doubtful accounts due to the historical collection rates on these accounts. |
Investments | Investments The Company has a less than 20% investment interest in Renewable Products Marketing Group, LLC (RPMG). This investment is being accounted for under the equity method of accounting under which the Company's share of net income is recognized as income in the Company's income statement and added to the investment account. The investment balance is included in other assets and the income recognized as other income. The investment is evaluated for indications of impairment on a regular basis, a loss would be recognized when the fair value is determined to be less than the carrying value. |
Inventories | Inventories Inventories are generally valued at the lower of cost (first-in, first-out) or net realizable value. In the valuation of inventories and purchase commitments, net realizable value is defined as estimated selling price in the ordinary course of business less reasonably predictable costs of completion, disposal, and transportation. |
Property and Equipment | Property and Equipment Property and equipment are stated at cost. Significant additions and betterments are capitalized, while expenditures for maintenance and repairs are charged to operations when incurred. The Company uses the straight-line method of computing depreciation over the estimated useful lives as follows. Estimated Useful Life in Years Minimum Maximum Land Improvements 20 40 Buildings 10 40 Equipment 7 40 The Company reviews its property and equipment for impairment whenever events indicate that the carrying amount of the asset group may not be recoverable. If circumstances require a long-lived asset group be tested for possible impairment, the Company first compares undiscounted cash flows expected to be generated by an asset group to the carrying value of the asset group. If the carrying value of the long-lived asset group in not recoverable on an undiscounted cash flow basis, an 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. The Company has concluded that no impairment is necessary as of December 31, 2017 and 2016. |
Derivative Instruments | Derivative Instruments The Company evaluates its contracts to determine whether the contracts are derivative instruments. Certain contracts that literally meet the definition of a derivative may be exempted from derivative accounting as normal purchases or normal sales. Normal purchases and normal sales are contracts that provide for the purchase or sale of something other than a financial instrument or derivative instrument that will be delivered in quantities expected to be used or sold over a reasonable period in the normal course of business. Contracts that meet the requirements of normal purchases or sales are documented as normal and exempted from the accounting and reporting requirements of derivative accounting. The Company enters into short-term cash, option and futures contracts as a means of securing purchases of corn, natural gas and sales of ethanol for the plant and managing exposure to changes in commodity and energy prices. All of the Company's derivatives are designated as non-hedge derivatives for accounting purposes, with changes in fair value recognized in net income. Although the contracts are economic hedges of specified risks, they are not designated or accounted for as hedging instruments. As part of its trading activity, the Company uses futures and option contracts through regulated commodity exchanges to manage its risk related to pricing of inventories. To reduce that risk, the Company generally takes positions using cash and futures contracts and options. Realized and unrealized gains and losses related to derivative contracts related to corn and natural gas are included as a component of cost of goods sold and derivative contracts related to ethanol are included as a component of revenues in the accompanying financial statements. The fair values of all contracts with the same counter party are presented net on the accompanying balance sheet as derivative instruments net of cash due from/to broker. |
Utility Rights | Utility Rights Utility rights consist of payments to electric and natural gas companies for construction in aid of electric and gas lines to the facility but the Company retains no ownership rights to the assets. The utility rights are amortized on a straight-line basis over 15 years based on the estimate normal usage of such infrastructure. At December 31, 2017 , the Company anticipates the following amortization of utility rights for the years ended December 31: 2018 $ 136,000 2019 136,000 2020 136,000 2021 136,000 2022 136,000 Thereafter 172,000 Total amortization $ 852,000 |
Revenue Recognition | Revenue and Cost Recognition Revenue from the sale of the Company's products is recognized at the time title to the goods and all risks of ownership transfer to the customers. This generally occurs upon shipment, loading of the goods or when the customer picks up the goods. Interest income is recognized as earned. Shipping costs incurred by the Company in the sale of ethanol and distiller grains are not specifically identifiable, and as a result, revenue from the sale of ethanol and distiller grains is recorded based on the net selling price reported to the Company from the marketer. Rail car lease costs incurred by the Company in the sale and shipment of distiller grain products are included in the cost of goods sold. |
Income Taxes | Income Taxes The Company was formed under sections of the federal and state income tax laws which provide that, in lieu of corporate income taxes, the members separately account for their share of the Company's items of income, deductions, losses and credits. As a result of this election, no income taxes have been recognized in the accompanying financial statements. Management has evaluated the Company's tax positions under the Financial Accounting Standards Board issued guidance on accounting for uncertainty in income taxes and concluded that the Company had taken no uncertain tax positions that require adjustment to the financial statements to comply with the provisions of this guidance. |
Committed Shares to be Redeemed | Committed Shares to be Redeemed On June 13, 2013, the Company entered into an agreement with Steve Retterath, the Company's largest member, to repurchase and retire all of the membership units owned by Mr. Retterath. The Company agreed to close on this repurchase on, or before, August 1, 2013. The Company agreed to repurchase and retire 25,860 membership units owned by Mr. Retterath in exchange for $30 million , to be paid in two equal installments, payable at closing and on July 1, 2014. The transaction failed to close by the scheduled date due to objections by Mr. Retterath. Due to all conditions of the agreement being met prior to, or on, August 1, 2013, the Company believes that it has a binding agreement with Mr. Retterath; as such the commitment to repurchase and retire the membership units is reflected in the financial statements as a liability as these shares became mandatorily redeemable on June 13, 2013. No distributions have been paid to Mr. Retterath since the time of the original expected closing date of August 1, 2013. |
Net Income per Unit | Net Income per Unit Basic and 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. Prior to, or on, August 1, 2013, the Company believes it has a binding agreement with Steve Retterath to repurchase and retire all 25,860 membership units owned by Mr. Retterath. These membership units have thus been excluded in the determination of net income per unit as presented in the Statement of Operations. The Company is currently involved in litigation with Mr. Retterath. There is potential that Mr. Retterath will continue as a unit holder upon conclusion of the litigation and said membership units would not be redeemed under the repurchase agreement. If the units are not redeemed, basic and diluted net income per unit, including the 25,860 units, for the twelve months ended December 31, 2017 , 2016 and 2015 would be approximately $186 , $381 , and $271 , respectively. |
Operating Segment | Operating Segment The Company uses the "management approach" for reporting information about segments in annual and interim financial statements. The management approach is based on the way the chief operating decision-maker organizes segments within a company for making operating decisions and assessing performance. Reportable segments are based on products and services, geography, legal structure, management structure and any other manner in which management disaggregates a company. Based on the "management approach" model, the Company has determined that its business is comprised of a single operating segment. |
Environmental Liabilities | Environmental Liabilities The Company's operations are subject to environmental laws and regulations adopted by various governmental authorities in the jurisdiction in which it operates. These laws require the Company to investigate and remediate the effects of the release or disposal of materials at its locations. Accordingly, the Company has adopted policies, practices and procedures in the areas of pollution control, occupational health and the production, handling, storage and use of hazardous materials to prevent material environmental or other damage, and to limit the financial liability which could result from such events. Environmental liabilities are recorded when the Company's liability is probable and the costs can be reasonably estimated. No expense or liability, including asset retirement obligations, for environmental liabilities has been recorded for the years ended December 31, 2017 , 2016 , or 2015. |
Fair Value of Financial Instruments, Policy | Fair Value Financial instruments include cash and equivalents, trading securities, accounts receivable, derivative instruments, accounts payable, accrued expenses and long-term debt. The fair value of trading securities and derivative financial instruments is based on quoted market prices (see Note 8). The fair value of other current financial instruments is estimated to approximate carrying value due to the short-term nature of these instruments (Level 3). |
Risks and Uncertainties | Risks and Uncertainties The Company has certain risks and uncertainties that it will experience 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, distiller grains and corn oil to customers primarily located in the United States. Corn for the production process is supplied to the plant primarily from local agricultural producers and from purchases on the open market. For the year ended December 31, 2017 , ethanol sales averaged approximately 81% of total revenues, while approximately 14% of revenues were generated from the sale of distiller grains and 5% of revenues were generated from the sale of corn oil. For the year ended December 31, 2017 , corn costs averaged approximately 76% of cost of goods sold. The Company's operating and financial performance is largely driven by the prices at which it sells ethanol and the net expense of corn. The price of ethanol is influenced by factors such as supply and demand, weather, government policies and programs, and unleaded gasoline and the petroleum markets. 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, and government policies and programs. The Company's risk management program is used to protect against the price volatility of these commodities. |
Recent & Pending Accounting Pronouncements | Recent & Pending Accounting Pronouncements The Company is currently evaluating the following new accounting pronouncements and their potential impact, if any, on our financial statements: In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash (a consensus of the FASB Emerging Issues Task Force), which provides guidance on the presentation of restricted cash or restricted cash equivalents in the statement of cash flows. For public companies, these amendments are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. ASU 2016-18 must be applied using a retrospective transition method with early adoption permitted. The Company adopted this guidance in its financial statements as of January 1, 2017 with no material impact on the statement of cash flows for the period ended December 31, 2017. In February 2016, FASB issued ASU No. 2016-02 "Leases” ("ASU 2016-02"). ASU 2016-02 requires the recognition of lease assets and lease liabilities by lessees for all leases greater than one year in duration and classified as operating leases under previous GAAP. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, and for interim periods within that fiscal year. The Company is currently evaluating the impact of its pending adoption of the new standard on the financial statements. In May 2014, the FASB issued ASU No. 2014-09, "Revenue from Contracts with Customers." This ASU supersedes the revenue recognition requirements in "Accounting Standard Codification 605 - Revenue Recognition" and most industry-specific guidance. The standard requires that entities recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which a company expects to be entitled in exchange for those goods or services. This ASU is effective for fiscal years beginning after December 15, 2017, and for interim periods within that fiscal year. Although early application as of the original date is permitted, the Company will adopt ASU No. 2014-09 and the related ASUs on January 1, 2018. The Company has evaluated the effect of this standard as well as its existing contracts with customers and it plans to use the modified retrospective method. Under the modified retrospective method, the Company will present revenue under the new method required by ASU No. 2014-09 beginning with first quarter 2018. The impact of this standard, other than disclosures, is expected to be minimal. |
Nature of Business and Signif20
Nature of Business and Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Nature of Business and Significant Accounting Policies [Abstract] | |
Property, Plant and Equipment | Estimated Useful Life in Years Minimum Maximum Land Improvements 20 40 Buildings 10 40 Equipment 7 40 |
Amortization of Loan Fees and Utility Rights | 2018 $ 136,000 2019 136,000 2020 136,000 2021 136,000 2022 136,000 Thereafter 172,000 Total amortization $ 852,000 |
Inventory (Tables)
Inventory (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Inventory [Abstract] | |
Schedule of Inventory | Inventory consisted of the following as of December 31, 2017 and 2016 . 2017 2016 Raw Materials $ 10,692,802 $ 8,489,218 Work in Process 1,827,414 1,900,387 Finished Goods 3,463,718 1,229,959 Totals $ 15,983,934 $ 11,619,564 |
Debt Schedule of Long Term Debt
Debt Schedule of Long Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Debt Instrument [Line Items] | |
Schedule of Maturities of Long-term Debt [Table Text Block] | At December 31, 2017, the Company had the following debt maturities on the term loan for the twelve month periods ended December 31: 2018 $ 6,000,000 2019 6,000,000 2020 6,000,000 2021 6,000,000 2022 6,000,000 Total principal payments $ 30,000,000 |
Commitments, Contingencies an23
Commitments, Contingencies and Agreements (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Commitments, Contingencies and Agreements [Abstract] | |
Schedule of Related Party Transactions | 2017 2016 2015 Sales ethanol - RPMG $ 207,344,000 $ 215,380,000 $ 201,978,000 Sales distiller grains 36,393,000 45,969,000 59,183,000 Sales corn oil - RPMG 12,789,000 11,589,000 8,810,000 Marketing fees ethanol - RPMG $ 250,000 $ 187,000 $ 169,000 Marketing fees distiller grains 663,000 777,000 787,000 Marketing fees corn oil - RPMG 52,000 76,000 60,000 2017 2016 Amount due from RPMG $ 236,000 $ 4,717,000 Amount due from CHS 900,000 1,329,000 |
Contractual Obligation, Fiscal Year Maturity Schedule | 2018 3,787,000 2019 947,000 Total anticipated commitments $ 4,734,000 |
Lease Obligations (Tables)
Lease Obligations (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Lease Obligations [Abstract] | |
Operating Leases Minimum Rental Commitments | 2018 $ 1,269,000 2019 1,127,000 2020 1,127,000 2021 1,127,000 2022 412,000 Total lease commitments $ 5,062,000 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Derivative Instruments [Abstract] | |
Schedule of Other Derivatives Not Designated as Hedging Instruments, Income Statement Classification | Income Statement Classification Realized Gain (Loss) Change In Unrealized Gain (Loss) Total Gain (Loss) Derivatives not designated as hedging instruments: Commodity contracts for the year ended December 31, 2017. Cost of Goods Sold $ 3,467,000 $ 317,000 $ 3,784,000 Total $ 3,467,000 $ 317,000 $ 3,784,000 Derivatives not designated as hedging instruments: Commodity contracts for the year ended December 31, 2016. Cost of Goods Sold $ 4,626,000 $ (443,000 ) $ 4,183,000 Total $ 4,626,000 $ (443,000 ) $ 4,183,000 Derivatives not designated as hedging instruments: Commodity contracts for the year ended December 31, 2015. Cost of Goods Sold $ 1,574,000 $ 394,000 $ 1,968,000 Total $ 1,574,000 $ 394,000 $ 1,968,000 |
Schedule of Fair Value of Derivatives Instruments, Balance Sheet | Balance Sheet Classification December 31, 2017 December 31, 2016 Futures and option contracts In gain position $ 305,000 $ 78,000 In loss position (7,000 ) (59,000 ) Cash held by broker 457,000 510,000 Current Asset $ 755,000 $ 529,000 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Measurements [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | Total Level 1 Level 2 Level 3 Trading Securities December 31, 2017 Assets $ 30,203,000 $ 30,203,000 $ — $ — December 31, 2016 Assets $ 41,551,000 $ 41,551,000 — — Derivative financial instruments December 31, 2017 Assets $ 305,000 $ 305,000 $ — $ — Liabilities (7,000 ) (7,000 ) — — December 31, 2016 Assets $ 78,000 $ 78,000 $ — $ — Liabilities (59,000 ) (59,000 ) — — |
Quarterly Financial Data (Una27
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Data (Unaudited) [Abstract] | |
Schedule of Quarterly Financial Information | 2017 First Quarter Second Quarter Third Quarter Fourth Quarter Total Revenues $ 63,156,498 $ 71,505,612 $ 59,680,650 $ 62,182,521 Gross Profit 5,135,045 6,741,476 7,528,111 286,486 Operating Income (Loss) 3,840,725 6,008,641 6,721,339 (405,323 ) Net Income (Loss) 4,154,127 6,227,065 6,797,340 (346,182 ) Basic & diluted earnings per unit $ 64 $ 96 $ 105 $ (5 ) 2016 First Quarter Second Quarter Third Quarter Fourth Quarter Total Revenues $ 61,310,749 $ 70,146,120 $ 64,675,851 $ 76,805,359 Gross Profit 2,578,236 9,068,138 9,630,522 15,874,547 Operating Income 1,743,781 8,331,826 8,503,535 14,835,503 Net Income 2,473,366 8,741,240 8,671,364 14,598,493 Basic & diluted earnings per unit $ 38 $ 135 $ 134 $ 226 2015 First Quarter Second Quarter Third Quarter Fourth Quarter Total Revenues $ 61,670,033 $ 72,749,790 $ 67,305,573 $ 68,245,557 Gross Profit 2,906,247 9,225,176 9,223,725 5,987,252 Operating Income 1,961,974 8,299,991 8,435,936 5,025,678 Net Income 2,592,159 8,345,300 8,612,666 4,961,158 Basic & diluted earnings per unit $ 40 $ 129 $ 133 $ 77 |
Nature of Business and Signif28
Nature of Business and Significant Accounting Policies Product (Details) - Ethanol [Member] gal in Millions | 12 Months Ended |
Dec. 31, 2017gal | |
Product Information [Line Items] | |
Annual Production Capacity, Minimum | 100 |
Annual Production Capacity, Current | 190 |
Nature of Business and Signif29
Nature of Business and Significant Accounting Policies Trading Securities (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Trading Securities, Cost | $ 30,569,000 | $ 41,863,000 | |
Trading securities | 30,202,665 | 41,551,151 | |
Realized and unrealized (gain) on trading securities | 631,352 | 820,530 | $ 275,789 |
Other Nonoperating Income (Expense) [Member] | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Realized and unrealized (gain) on trading securities | 553,000 | 821,000 | $ 276,000 |
Fair Value, Measurements, Recurring [Member] | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Trading securities | $ 30,203,000 | $ 41,551,000 |
Property, Plant and Equipment (
Property, Plant and Equipment (Details) | 12 Months Ended |
Dec. 31, 2017 | |
Land Improvements [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Estimated Useful Lives | 20 |
Land Improvements [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Estimated Useful Lives | 40 |
Building [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Estimated Useful Lives | 10 |
Building [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Estimated Useful Lives | 40 |
Equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Estimated Useful Lives | 7 |
Equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Estimated Useful Lives | 40 |
Amortization of Loan Fees and U
Amortization of Loan Fees and Utility Rights (Details) | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Amoritzation of financing costs and utility rights, future minimum payments, due in 2017 | $ 136,000 |
Amoritzation of financing costs and utility rights, future minimum payments, due in 2018 | 136,000 |
Amoritzation of financing costs and utility rights, future minimum payments, due in 2019 | 136,000 |
Amoritzation of financing costs and utility rights, future minimum payments, due in 2020 | 136,000 |
Amoritzation of financing costs and utility rights, future minimum payments, due in 2021 | 136,000 |
Amoritzation of financing costs and utility rights, future minimum payments, due thereafter | 172,000 |
Amortization of Financing Costs | $ 852,000 |
Committed Shares to be Redeemed
Committed Shares to be Redeemed (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2017 | |
Accounting Policies [Abstract] | |||
Partners' Capital Account, Units, Redeemed | 25,860 | 25,860 | |
Related Party Transaction [Line Items] | |||
Due to former member | $ 30,000,000 | $ 30,000,000 | |
Director [Member] | |||
Related Party Transaction [Line Items] | |||
Due to former member | $ 30,000,000 | $ 30,000,000 |
Nature of Business and Signif33
Nature of Business and Significant Accounting Policies Net Income per Unit (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Net Income per Unit [Abstract] | |||
Earnings Per Share, Basic and Diluted, Including Redeemed Shares | $ 186 | $ 381 | $ 271 |
Risk and Uncertainties (Details
Risk and Uncertainties (Details) | 12 Months Ended |
Dec. 31, 2017 | |
Sales Revenue, Segment [Member] | Ethanol [Member] | |
Concentration Risk [Line Items] | |
Concentration Risk, Percentage | 81.00% |
Sales Revenue, Segment [Member] | Distillers Grains [Member] | |
Concentration Risk [Line Items] | |
Concentration Risk, Percentage | 14.00% |
Sales Revenue, Segment [Member] | Corn Oil [Member] | |
Concentration Risk [Line Items] | |
Concentration Risk, Percentage | 5.00% |
Cost of Goods, Segment [Member] | Corn [Member] | |
Concentration Risk [Line Items] | |
Concentration Risk, Percentage | 76.00% |
Inventory (Details)
Inventory (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Inventory [Abstract] | ||
Raw Materials | $ 10,692,802 | $ 8,489,218 |
Work in Process | 1,827,414 | 1,900,387 |
Finished Goods | 3,463,718 | 1,229,959 |
Inventory | $ 15,983,934 | $ 11,619,564 |
Debt (Details)
Debt (Details) | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Debt Instrument [Line Items] | |
Long-term Debt, Maturities, Repayments of Principal in Next Twelve Months | $ 6,000,000 |
Estimated expansion project costs | 42,000,000 |
Long-term Debt, Maturities, Repayments of Principal in Year Two | 6,000,000 |
Long-term Debt, Maturities, Repayments of Principal in Year Three | 6,000,000 |
Long-term Debt, Maturities, Repayments of Principal in Year Four | 6,000,000 |
Long-term Debt, Maturities, Repayments of Principal in Year Five | 6,000,000 |
Long-term Debt | $ 30,000,000 |
Line of Credit [Member] | Home Federal Savings Bank [Member] | Term Revolving Loan [Member] | |
Debt Instrument [Line Items] | |
Debt Instrument, Basis Spread on Variable Rate | 3.10% |
Line of Credit Facility, Maximum Borrowing Capacity | $ 30,000,000 |
Line of Credit Facility, Interest Rate at Period End | 4.34% |
Line of Credit Facility, Average Outstanding Amount | $ 0 |
Line of Credit Facility, Remaining Borrowing Capacity | 30,000,000 |
Line of Credit [Member] | Home Federal Savings Bank [Member] | Term Loan [Member] | |
Debt Instrument [Line Items] | |
Long-term Debt, Fair Value | $ 30,000,000 |
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate | 4.79% |
Debt Instrument, Periodic Payment, Principal | $ 3,000,000 |
Unamortized Debt Issuance Expense | $ 63,317 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Related Party Transaction [Line Items] | |||
Stock Repurchased and Retired During Period, Shares | 25,860 | ||
Due to former member | $ 30,000,000 | $ 30,000,000 | |
Director [Member] | |||
Related Party Transaction [Line Items] | |||
Purchases from Related Party | 10,721,000 | 10,892,000 | $ 5,977,000 |
Commitment to redeem membership units | $ 3,207 | 0 | |
Due to former member | $ 30,000,000 | $ 30,000,000 |
Supply Commitments (Details)
Supply Commitments (Details) - Supply Commitment [Member] lb in Millions, gal in Millions | 12 Months Ended |
Dec. 31, 2017gallbtons | |
Ethanol [Member] | |
Supply Commitment [Line Items] | |
Supply Commitment, Minimum Amount at Varying Fixed Price, Gallons | 0 |
Supply Commitment, Minimum Amount at Basis Price Levels, Gallons | 48 |
Corn Oil [Member] | |
Supply Commitment [Line Items] | |
Supply Commitment, Remaining Minimum Amount Committed, Weight | lb | 5.1 |
Distillers Grains [Member] | |
Supply Commitment [Line Items] | |
Supply Commitment, Remaining Minimum Amount Committed, Weight | tons | 38,000 |
Related Party (Details)
Related Party (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Investor [Member] | |||
Related Party Transaction [Line Items] | |||
Equity Method Investments | $ 2,330,000 | $ 2,302,000 | |
Ethanol [Member] | Investor [Member] | |||
Related Party Transaction [Line Items] | |||
Sales | 207,344,000 | 215,380,000 | $ 201,978,000 |
Marketing Fees | 250,000 | 187,000 | 169,000 |
Ethanol [Member] | RPMG [Member] | |||
Related Party Transaction [Line Items] | |||
Related Party Transaction, Due from (to) Related Party | 236,000 | 4,717,000 | |
Distillers Grains [Member] | Unrelated Party [Member] | |||
Related Party Transaction [Line Items] | |||
Sales | 36,393,000 | 45,969,000 | 59,183,000 |
Marketing Fees | 663,000 | 777,000 | 787,000 |
Distillers Grains [Member] | CHS [Member] | |||
Related Party Transaction [Line Items] | |||
Related Party Transaction, Due from (to) Related Party | 900,000 | 1,329,000 | |
Corn Oil [Member] | Investor [Member] | |||
Related Party Transaction [Line Items] | |||
Sales | 12,789,000 | 11,589,000 | 8,810,000 |
Marketing Fees | $ 52,000 | $ 76,000 | $ 60,000 |
Purchase Commitments (Details)
Purchase Commitments (Details) | 12 Months Ended | |
Dec. 31, 2017USD ($)MMBTUbu | Dec. 31, 2016USD ($)bu | |
Long-term Purchase Commitment [Line Items] | ||
Derivative, Nonmonetary Notional Amount, Energy Measure | MMBTU | 5,000 | |
Derivative, Nonmonetary Notional Amount, Volume | bu | 522,000 | |
Commodity Contract Asset, Current | $ | $ 1,809,000 | |
Corn [Member] | ||
Long-term Purchase Commitment [Line Items] | ||
Long-term Purchase Commitment, Amount | $ | $ 9,646,000 | |
Long-term Purchase Commitment, Minimum Mass Required | bu | 5,770,000 | |
Derivative, Nonmonetary Notional Amount, Volume | bu | 645,000 | |
Commodity Contract Asset, Current | $ | $ 2,129,000 |
Purchase Commitments Other (Det
Purchase Commitments Other (Details) | Dec. 31, 2017USD ($) |
Long-term Purchase Commitment [Line Items] | |
Purchase Obligation | $ 4,734,000 |
Public Utilities, Inventory, Fuel [Member] | |
Long-term Purchase Commitment [Line Items] | |
Purchase Obligation, Due in 2018 | 3,787,000 |
Purchase Obligation, Due in 2019 | $ 947,000 |
Lease Obligations (Details)
Lease Obligations (Details) - Railroad Transportation Equipment [Member] - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Operating Leased Assets [Line Items] | |||
Operating Leases, Rent Expense | $ 1,577,000 | $ 1,810,000 | $ 1,608,000 |
Operating Lease Payments Due 2017 | 1,269,000 | ||
Operating Lease Payments Due 2018 | 1,127,000 | ||
Operating Lease Payments Due 2019 | 1,127,000 | ||
Operating Lease Payments Due 2020 | 1,127,000 | ||
Operating Lease Payments Due 2021 | 412,000 | ||
Total Operating Lease Payments Due | $ 5,062,000 |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Employee Benefit Plans [Abstract] | |||
Defined Contribution Plan, Matching Contributions by Employer | $ 274,000 | $ 130,000 | $ 91,000 |
Derivative Instruments Derivati
Derivative Instruments Derivative Instruments (Details) | 12 Months Ended |
Dec. 31, 2017 | |
Corn [Member] | |
Derivative [Line Items] | |
Concentration Risk, Amount of Material | 65,000,000 |
Designated as Hedging Instrument [Member] | |
Derivative [Line Items] | |
Derivative, Nonmonetary Notional Amount, Percent of Required Need, Coverage | 10.00% |
Designated as Hedging Instrument [Member] | Minimum [Member] | |
Derivative [Line Items] | |
Derivative, Nonmonetary Notional Amount, Percent of Required Need, Yearly Average | 5.00% |
Designated as Hedging Instrument [Member] | Maximum [Member] | |
Derivative [Line Items] | |
Derivative, Nonmonetary Notional Amount, Percent of Required Need, Yearly Average | 60.00% |
Derivative Instruments - Income
Derivative Instruments - Income Statement (Details) - Not Designated as Hedging Instrument [Member] - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative Instruments, Realized Gain (Loss) Recognized in Income | $ 3,467,000 | $ 4,626,000 | $ 1,574,000 |
Derivative Instruments, Unrealized Gain (Loss) Recognized in Income | 317,000 | (443,000) | 394,000 |
Derivative Instruments, Gain (Loss) Recognized in Income | 3,784,000 | 4,183,000 | 1,968,000 |
Commodity Contract [Member] | Cost of Sales [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative Instruments, Realized Gain (Loss) Recognized in Income | 3,467,000 | 4,626,000 | 1,574,000 |
Derivative Instruments, Unrealized Gain (Loss) Recognized in Income | 317,000 | (443,000) | 394,000 |
Derivative Instruments, Gain (Loss) Recognized in Income | $ 3,784,000 | $ 4,183,000 | $ 1,968,000 |
Derivative Instruments - Balanc
Derivative Instruments - Balance Sheet (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Derivatives, Fair Value [Line Items] | ||
Derivative instruments | $ 755,220 | $ 529,185 |
Other Current Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Other Receivables from Broker-Dealers and Clearing Organizations | 457,000 | 510,000 |
Derivative instruments | 755,000 | 529,000 |
Commodity Contract [Member] | Other Current Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 305,000 | 78,000 |
Derivative Asset, Fair Value, Gross Liability | $ 7,000 | $ (59,000) |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading securities | $ 30,202,665 | $ 41,551,151 |
Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading securities | 30,203,000 | 41,551,000 |
Derivative Assets | 305,000 | 78,000 |
Derivative Liability | (7,000) | (59,000) |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading securities | 30,203,000 | 41,551,000 |
Derivative Assets | 305,000 | 78,000 |
Derivative Liability | (7,000) | (59,000) |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading securities | 0 | 0 |
Derivative Assets | 0 | 0 |
Derivative Liability | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading securities | 0 | 0 |
Derivative Assets | 0 | 0 |
Derivative Liability | $ 0 | $ 0 |
Quarterly Financial Data (Una48
Quarterly Financial Data (Unaudited) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Quarterly Financial Data (Unaudited) [Abstract] | |||||||||||||||
Revenue | $ 62,182,521 | $ 59,680,650 | $ 71,505,612 | $ 63,156,498 | $ 76,805,359 | $ 64,675,851 | $ 70,146,120 | $ 61,310,749 | $ 68,245,557 | $ 67,305,573 | $ 72,749,790 | $ 61,670,033 | $ 256,525,281 | $ 272,938,079 | $ 269,970,953 |
Gross Profit | 286,486 | 7,528,111 | 6,741,476 | 5,135,045 | 15,874,547 | 9,630,522 | 9,068,138 | 2,578,236 | 5,987,252 | 9,223,725 | 9,225,176 | 2,906,247 | 19,691,118 | 37,151,443 | 27,342,400 |
Operating Income (Loss) | (405,323) | 6,721,339 | 6,008,641 | 3,840,725 | 14,835,503 | 8,503,535 | 8,331,826 | 1,743,781 | 5,025,678 | 8,435,936 | 8,299,991 | 1,961,974 | 16,165,382 | 33,414,645 | 23,723,579 |
Net Income | $ (346,182) | $ 6,797,340 | $ 6,227,065 | $ 4,154,127 | $ 14,598,493 | $ 8,671,364 | $ 8,741,240 | $ 2,473,366 | $ 4,961,158 | $ 8,612,666 | $ 8,345,300 | $ 2,592,159 | $ 16,832,350 | $ 34,484,463 | $ 24,511,283 |
Basic & diluted net income per capital unit | $ (5) | $ 105 | $ 96 | $ 64 | $ 226 | $ 134 | $ 135 | $ 38 | $ 77 | $ 133 | $ 129 | $ 40 | $ 261 | $ 534 | $ 380 |