Document - Cover
Document - Cover - shares | 6 Months Ended | |
Jun. 30, 2021 | Aug. 13, 2021 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2021 | |
Entity File Number | 000-53202 | |
Entity Registrant Name | HOMELAND ENERGY SOLUTIONS, LLC | |
Entity Incorporation, State or Country Code | IA | |
Entity Tax Identification Number | 20-3919356 | |
Entity Address, Address Description | 2779 Highway 24, | |
Entity Address, State or Province | IA | |
Entity Address, City or Town | Lawler, | |
Entity Address, Postal Zip Code | 52154 | |
Entity Address, Country | US | |
City Area Code | 563 | |
Local Phone Number | 238-5555 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Common Stock, Shares Outstanding | 64,560 | |
Entity Central Index Key | 0001366744 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity Shell Company | false |
Balance Sheets
Balance Sheets - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 |
CURRENT ASSETS | ||
Cash and cash equivalents | $ 2,746,773 | $ 5,072,227 |
Accounts receivable | 8,797,164 | 4,121,778 |
Inventory | 52,429,427 | 24,459,408 |
Prepaid and other | 4,493,407 | 4,833,883 |
Derivative instruments | 1,230,938 | 840,857 |
Total current assets | 69,697,709 | 39,328,153 |
PROPERTY AND EQUIPMENT | ||
Land and improvements | 23,260,902 | 23,260,902 |
Buildings | 8,777,302 | 8,777,302 |
Equipment | 241,628,905 | 240,429,826 |
Construction in progress | 1,111,200 | 620,832 |
Gross property and equipment | 274,778,309 | 273,088,862 |
Less accumulated depreciation | 153,044,476 | 144,554,643 |
Total property and equipment | 121,733,833 | 128,534,219 |
OTHER ASSETS | ||
Right of use asset operating leases, net | 2,307,790 | 3,116,941 |
Utility rights, net of amortization of $1,660,190 and $1,591,994 | 375,064 | 443,260 |
Other assets | 4,220,646 | 4,116,647 |
Total other assets | 6,903,500 | 7,676,848 |
TOTAL ASSETS | 198,335,042 | 175,539,220 |
CURRENT LIABILITIES | ||
Accounts payable | 10,287,050 | 20,836,019 |
Accrued expenses | 1,410,001 | 1,219,705 |
Current portion operating lease liability | 1,489,257 | 1,637,878 |
Total current liabilities | 13,186,308 | 23,693,602 |
COMMITMENTS AND CONTINGENCIES | 0 | 0 |
LONG-TERM LIABILITIES | ||
Long-term Debt | 15,189,000 | 0 |
Operating lease liability | 818,533 | 1,479,063 |
Total long-term liabilities | 16,007,533 | 1,479,063 |
MEMBERS' EQUITY (64,560 units issued and outstanding) | 169,141,201 | 150,366,555 |
TOTAL LIABILITIES AND MEMBERS' EQUITY | $ 198,335,042 | $ 175,539,220 |
Balance Sheets (Parenthetical)
Balance Sheets (Parenthetical) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 |
OTHER ASSETS | ||
Utility rights, accumulated amortization | $ 1,932,965 | $ 1,864,769 |
MEMBERS’ EQUITY | ||
Members Capital units issued (in shares) | 64,560 | 64,560 |
Members Capital units outstanding (in shares) | 64,560 | 64,560 |
Statements of Operations
Statements of Operations - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Income Statement [Abstract] | ||||
Revenue | $ 130,691,378 | $ 63,862,205 | $ 227,068,328 | $ 128,899,443 |
Cost of goods sold | 116,577,854 | 59,284,228 | 205,798,353 | 128,249,051 |
Gross profit | 14,113,524 | 4,577,977 | 21,269,975 | 650,392 |
Selling, general and administrative expenses | 1,131,308 | 831,256 | 2,363,684 | 1,836,269 |
Operating income | 12,982,216 | 3,746,721 | 18,906,291 | (1,185,877) |
Other Income (expense) | ||||
Interest (expense) | (132,863) | (219,068) | (233,599) | (444,124) |
Interest income | 10,787 | 14,470 | 12,759 | 43,014 |
Other Income | 49,211 | 419,699 | 89,195 | 300,244 |
Total other income (expense) | (72,865) | 215,101 | (131,645) | (100,866) |
Net income | $ 12,909,351 | $ 3,961,822 | $ 18,774,646 | $ (1,286,743) |
Basic & diluted net income per capital unit (in dollars per unit) | $ 199.96 | $ 61.37 | $ 290.81 | $ (19.93) |
Weighted average number of units outstanding for the calculation of basic & diluted net income per capital unit (units) | 64,560 | 64,560 | 64,560 | 64,560 |
Distribution per Unit (in dollars per unit) | $ 0 | $ 0 | $ 0 | $ 0 |
Statements of Cash Flows
Statements of Cash Flows - USD ($) | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income | $ 18,774,646 | $ (1,286,743) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 8,558,030 | 8,043,348 |
Unrealized (gain) loss on risk management activities | (390,081) | 567,094 |
Unrealized loss on trading securities activities | 0 | 74,070 |
(Loss) on disposal of property and equipment | 0 | (3,254) |
Change in working capital components: | ||
Accounts receivable | (4,675,386) | 2,946,395 |
Inventory | (27,970,019) | 449,077 |
Prepaid and other | 340,476 | 334,987 |
Accounts payable and other accrued expenses | (9,717,307) | (4,248,264) |
Net cash provided by (used in) operating activities | (15,079,641) | 6,876,710 |
Proceeds from Sale of Debt and Equity Securities, FV-NI, Held-for-investment | 0 | 32,025,459 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Payments for equipment and construction in progress | (2,330,814) | (2,542,303) |
Proceeds from sale of equipment | 0 | 32,000 |
(Increase) in other assets | (103,999) | (202,526) |
Net cash provided by (used in) investing activities | (2,434,813) | 29,312,630 |
Proceeds from Issuance of Long-term Debt | 0 | 907,675 |
Payments on long-term borrowings | 0 | (3,000,000) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Proceeds from Lines of Credit | 145,462,000 | 0 |
Repayments of Lines of Credit | (130,273,000) | 0 |
Payments for Repurchase of Equity | 0 | (30,000,000) |
Net Cash Provided by (Used in) Financing Activities | 15,189,000 | (32,092,325) |
Net increase (decrease) in cash and cash equivalents | (2,325,454) | 4,097,015 |
Cash and Cash Equivalents - Beginning | 5,072,227 | 17,274,703 |
Cash and Cash Equivalents - Ending | 2,746,773 | 21,371,718 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION | ||
Cash paid for interest | 193,441 | 437,088 |
SUPPLEMENTAL SCHEDULE OF NONCASH INVESTING AND FINANCING ACTIVITIES | ||
Accounts payable issued for property and equipment additions | $ 402,332 | $ 207,240 |
Statements of Changes in Member
Statements of Changes in Members' Equity | USD ($) |
Members' Equity, Balance at Dec. 31, 2019 | $ 153,975,555 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |
Net income | (5,248,565) |
Members' Equity, Balance at Mar. 31, 2020 | 148,726,990 |
Members' Equity, Balance at Dec. 31, 2019 | 153,975,555 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |
Net income | (1,286,743) |
Members' Equity, Balance at Jun. 30, 2020 | 152,688,812 |
Members' Equity, Balance at Mar. 31, 2020 | 148,726,990 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |
Net income | 3,961,822 |
Members' Equity, Balance at Jun. 30, 2020 | 152,688,812 |
Members' Equity, Balance at Dec. 31, 2020 | 150,366,555 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |
Net income | 5,865,295 |
Members' Equity, Balance at Mar. 31, 2021 | 156,231,850 |
Members' Equity, Balance at Dec. 31, 2020 | 150,366,555 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |
Net income | 18,774,646 |
Members' Equity, Balance at Jun. 30, 2021 | 169,141,201 |
Members' Equity, Balance at Mar. 31, 2021 | 156,231,850 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |
Net income | 12,909,351 |
Members' Equity, Balance at Jun. 30, 2021 | $ 169,141,201 |
Organization, Consolidation and
Organization, Consolidation and Presentation of Financial Statements | 6 Months Ended |
Jun. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Significant Accounting Policies | NATURE OF BUSINESS AND 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 December 31, 2020, contained in the Company's annual report on Form 10-K for 2020. In the opinion of management, the interim condensed financial statements reflect all adjustments considered necessary for fair presentation. The adjustments made to these statements consist only of normal recurring adjustments. 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 primarily 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 & 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 losses in such accounts. Also included in cash and cash equivalents are highly liquid investments that are readily convertible into known amounts of cash, which are subject to an insignificant risk of change in value due to interest rate, quoted price or penalty on withdrawal and have an original maturity of three months or less. 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. At June 30, 2021 and December 31, 2020, the Company held no trading securities. During the three and six months ended June 30, 2021, the Company had no interest, dividends and net unrealized gains from trading securities. During the three and six months ended June 30, 2020, the Company recorded interest, dividends and net unrealized gains from trading securities of approximately $500,000 and $181,000, respectively. The Board of Directors voted to set aside up to $30 million in trading securities to be used by the Company for the repurchase of 25,860 membership units per the terms of an agreement with Mr. Retterath entered into on June 13, 2013 with the Company. These trading securities were used in April 2020 to repurchase the 25,860 membership units from Mr. Retterath. Receivables Credit sales are made primarily to two customers and no collateral is required. The Company carries these accounts receivable at original invoice 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, as the Company has significant influence, under which the Company's share of net income is recognized as income in the Company's statement of operations 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. Revenue and Cost Recognition The Company recognizes Revenue from Contracts with Customers following Accounting Standards Update (ASU) 2014-09. Under the ASU, revenue is recognized when a customer obtains control of promised goods or services in an amount that reflects the consideration the Company expects to receive in exchange for those goods or services. In addition, the standard requires disclosure of the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The Company generally has a single performance obligation in its arrangements with customers. The Company believes for its contracts with customers, control is transferred at a point in time, typically upon delivery to the customers. When the Company performs shipping and handling activities after the transfer of control to the customers (e.g., when control transfers prior to delivery), they are considered as fulfillment activities, and accordingly, the costs are accrued for when the related revenue is recognized. The Company generally expenses sales commissions when incurred because the amortization period would have been less than one year. The following is a description of principal activities from which we generate revenue. Revenues from contracts with customers are recognized when control of the promised goods or services are transferred to our customers, in an amount that reflects the consideration that we expect to receive in exchange for those goods or services. • sales of ethanol; • sales of distiller grains; and • sales of corn oil; All revenue recognized in the statement of operations is considered to be revenue from contracts with customers. The disaggregation of revenue according to product line, along with accounts receivable from contracts with customers, is as disclosed in Note 5. 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. 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 & Equipment 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 an asset group be tested for possible impairment, the Company first compares undiscounted cash flows expected to be generated by the asset group to the carrying value of the asset group. If the carrying value of the asset group is 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. 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 (loss). Although the contracts are economic hedges of specified risks, they are not designated as and 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 revenue in the accompanying financial statements. The fair values of contracts entered through commodity exchanges are presented on the accompanying balance sheet as derivative instruments. All contracts with the same counter party are reported on a net basis. Net Income (Loss) per Unit Basic and diluted net income (loss) per unit is computed by dividing net income (loss) 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. 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 six months ended June 30, 2021, ethanol sales averaged approximately 75% of total revenues, while approximately 19% of revenues were generated from the sale of distiller grains. Corn oil sales attributed approximately 6% of revenues during this time period. For the six months ended June 30, 2021, corn costs averaged approximately 78% of cost of goods sold. The Company's operating and financial performance is largely driven by the prices at which ethanol is sold 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. On January 30, 2020, the World Health Organization declared the coronavirus outbreak (COVID-19) a "Public Health Emergency of International Concern" and on March 11, 2020, declared COVID-19 a pandemic. The impact of COVID-19 has negatively impacted the Company’s operations, suppliers or other vendors, and customer base. Any future quarantines, labor shortages or other disruptions to the Company's operations, or those of their customers, may adversely impact the Company's revenues, ability to provide its services and operating results. In addition, a significant outbreak of epidemic, pandemic or contagious diseases in the human population could result in a widespread health crisis that could adversely affect the economies and financial markets of many countries, including the geographical area in which the Company operates, resulting in an economic downturn that could affect demand for its goods and services. The extent to which the coronavirus continues to impact the Company's results will depend on future developments, which are highly uncertain and cannot be predicted, including new information which may emerge concerning the severity of the coronavirus and actions taken to contain the coronavirus or its impact, among others. |
Nature of Operations | 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 primarily 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. |
Inventory
Inventory | 6 Months Ended |
Jun. 30, 2021 | |
Inventory Disclosure [Abstract] | |
Inventory | INVENTORY Inventory consisted of the following as of June 30, 2021 and December 31, 2020: June 30, 2021 December 31, 2020 Raw Materials $ 37,954,989 $ 15,909,576 Work in Process 4,434,341 2,923,041 Finished Goods 10,040,097 5,626,791 Totals $ 52,429,427 $ 24,459,408 |
Debt
Debt | 6 Months Ended |
Jun. 30, 2021 | |
Debt Disclosure [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. The Company currently has one loan with Home Federal, a term revolving loan. Term Revolving Loan Under the terms of the Second Amended and Restated Second Supplement to the Master Loan Agreement, dated November 6, 2020, the Company has a $50 million term revolving loan which has a maturity date of November 6, 2025. Interest on the term revolving loan is due monthly and accrues at a rate equal to Prime Rate less 60 basis points, 2.65% on June 30, 2021. There was approximately $15.2 million outstanding on the term revolving loan and approximately $34.8 million available to be drawn as of June 30, 2021 and no balance outstanding and $50 million available as of December 31, 2020. 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 the 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 financial covenants as of June 30, 2021. |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 2021 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | RELATED PARTY TRANSACTIONSThe Company has purchased corn and materials from members of its Board of Directors who own or manage elevators or are local producers of corn. Purchases during the three and six months ended June 30, 2021 totaled approximately $434,000 and $2,470,000, respectively and during the three and six months ended June 30, 2020 totaled approximately $509,000 and $1,171,000, respectively. Amounts due to these members were none and approximately $28,000 at June 30, 2021 and December 31, 2020, respectively. |
Commitments, Contingencies, Agr
Commitments, Contingencies, Agreements and Subsequent Events | 6 Months Ended |
Jun. 30, 2021 | |
Commitments, Contingencies and Agreements [Abstract] | |
Commitments, Contingencies, Agreements and Subsequent Events | COMMITMENTS, CONTINGENCIES, AGREEMENTS Ethanol, corn oil, and distiller grains marketing agreements and major customers The Company has entered into a marketing agreement with RPMG to sell all denatured fuel ethanol produced at the plant at a mutually agreed on price, less commission and transportation charges. As of June 30, 2021, the Company had commitments to sell approximately 3 million gallons of ethanol at fixed prices and 45 million of its produced gallons of ethanol at basis price levels indexed against exchanges for delivery through September 30, 2021. The Company has entered into a marketing agreement with RPMG to sell all industrial alcohol produced at the plant at a mutually agreed on price, less commission and transportation charges. As of June 30, 2021, the Company had no commitments to sell any gallons of industrial alcohol. The Company has 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 June 30, 2021, the Company had commitments to sell approximately 5 million pounds of corn oil at various fixed and basis price levels indexed against exchanges for delivery through July 31, 2021. The Company also has an investment in RPMG, included in other assets, totaling approximately $2,616,000 and $2,527,000 as of June 30, 2021 and December 31, 2020, respectively. 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 was renewed for another one one Sales and marketing fees related to the agreements in place for the three and six months ended June 30, 2021 and 2020 were approximately as follows: Three Months Ended Six Months Ended Three Months Ended Six Months Ended June 30, 2021 June 30, 2021 June 30, 2020 June 30, 2020 Sales ethanol $ 99,037,000 $ 170,768,000 $ 48,194,000 $ 96,147,000 Sales distiller grains 23,920,000 42,903,000 13,163,000 26,806,000 Sales corn oil 7,733,000 13,390,000 3,681,000 7,122,000 Marketing fees ethanol $ 104,000 $ 258,000 $ 23,000 $ 83,000 Marketing fees distiller grains 218,000 414,000 191,000 396,000 Marketing fees corn oil 32,000 61,000 11,000 40,000 As of June 30, 2021 As of December 31, 2020 Amount due from RPMG $ 5,565,000 $ 1,451,000 Amount due from CHS 3,195,000 2,635,000 At June 30, 2021, the Company had approximately $56,086,000 in outstanding priced corn purchase commitments for bushels at various prices and approximately 2,507,000 bushels of basis contracts through December 2022 accounted for under the normal purchase exclusion. The Company has commitments for minimum purchases of various utilities such as natural gas and electricity over the next 12 months totaling approximately $516,000 accounted for under the normal purchase exclusion. As of June 30, 2021, the Company had no natural gas locked in at fixed prices. As of June 30, 2020, approximately 1,932,000 decatherms of natural gas was locked into place at fixed prices through December 31, 2020 accounted for under the normal purchase exclusion. |
Lease Obligations
Lease Obligations | 6 Months Ended |
Jun. 30, 2021 | |
Leases [Abstract] | |
Lease Obligations | LEASE OBLIGATIONSA lease exists when a contract conveys to a party the right to control the use of identified property, plant, or equipment for a period of time in exchange for consideration. The Company recognized a lease liability at the lease commencement date, as the present value of future lease payments, using an estimated rate of interest that the Company would pay to borrow equivalent funds on a collateralized basis. A lease asset is recognized based on the lease liability value and adjusted for any prepaid lease payments, initial direct costs, or lease incentive amounts. The lease term at the commencement date includes any renewal options or termination options when it is reasonably certain that the Company will exercise or not exercise those options, respectively. The Company leases rail cars and rail moving equipment with original terms up to 7 years. The Company is obligated to pay costs of insurance, taxes, repairs and maintenance pursuant to the terms of the leases. These costs are in addition to regular lease payments and are not included in lease expense. Rent expense incurred for the operating leases during the three and six months ended June 30, 2021 was approximately $492,000 and $953,000, respectively and for the same periods in 2020 was approximately $444,000 and $888,000, respectively. The lease agreements have maturity dates ranging from March 2022 to October 2025. The weighted average remaining life of the lease term for these leases was 1.39 years as of June 30, 2021. The discount rate used in determining the lease liability for each individual lease was the Company's estimated incremental borrowing rate of 4.79%. The right-of-use asset operating lease, included in other assets, and operating lease liability, included in current and long term liabilities was approximately $2,307,790 and $3,116,941 as of June 30, 2021 and December 31, 2020, respectively. At June 30, 2021, the Company had the following approximate minimum rental commitments under non-cancelable operating leases for the twelve month period ended June 30: 2022 $ 1,564,000 2023 557,000 2024 156,000 2025 109,000 Thereafter 36,000 Total lease commitments $ 2,422,000 A reconciliation of the undiscounted future payments in the schedule above and the lease liability recognized in the consolidated balance sheet as of June 30, 2021, is shown below. Undiscounted future payments $ 2,422,000 Discount effect (114,000) $ 2,308,000 |
Derivative Instruments
Derivative Instruments | 6 Months Ended |
Jun. 30, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [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. Over the next twelve months, the Company has hedged and anticipates hedging between 5% and 28% of its anticipated annual grind. At June 30, 2021, the Company has hedged portions of its anticipated monthly purchases for corn averaging approximately 27% of its anticipated monthly grind over the next twelve months. The following table represents the approximate amount of realized/unrealized gains (losses) and changes in fair value recognized in earnings on commodity contracts for the three and six months ending June 30, 2021 and 2020 and the fair value of derivatives as of June 30, 2021 and December 31, 2020: Income Statement Classification Realized Gain (Loss) Change In Unrealized Gain (Loss) Total Gain (Loss) Derivatives not designated as hedging instruments: Commodity contracts for the three months ended June 30, 2021 Cost of Goods Sold $ (13,143,000) $ (1,700,000) $ (14,843,000) Commodity contracts for the three months ended June 30, 2020 Revenue $ — $ (1,176,000) $ (1,176,000) Cost of Goods Sold 1,433,000 (1,083,000) 350,000 Total $ 1,433,000 $ (2,259,000) $ (826,000) Commodity contracts for the six months ended June 30, 2021 Cost of Goods Sold $ (18,458,000) $ 2,267,000 $ (16,191,000) Commodity contracts for the six months ended June 30, 2020 Revenue $ — $ (1,176,000) $ (1,176,000) Cost of Goods Sold 4,183,000 (1,236,000) 2,947,000 Total $ 4,183,000 $ (2,412,000) $ 1,771,000 Balance Sheet Classification June 30, 2021 December 31, 2020 Futures contracts In gain position $ 481,000 $ — In loss position (4,446,000) (6,233,000) Cash held by broker 5,196,000 7,074,000 Current Asset $ 1,231,000 $ 841,000 |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | FAIR VALUE MEASUREMENTS Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. In determining fair value, the Company uses various methods including market, income and cost approaches. Based on these approaches, the Company often utilizes certain assumptions that market participants would use in pricing the asset or liability, including assumptions about risk and/or the risks inherent in the inputs to the valuation technique. These inputs can be readily observable, market-corroborated, or generally unobservable inputs. The Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. Based on the observability of the inputs used in the valuation techniques, the Company is required to provide the following information according to the fair value hierarchy. The fair value hierarchy ranks the quality and reliability of the information used to determine fair values. Financial assets and liabilities carried at fair value will be classified and disclosed in one of the following three categories: Level 1: Valuations for assets and liabilities traded in active markets from readily available pricing sources for market transactions involving identical assets or liabilities. Level 2: Valuations for assets and liabilities traded in less active dealer or broker markets. Valuations are obtained from third-party pricing services for identical or similar assets or liabilities. Level 3: Valuations incorporate certain assumptions and projections in determining the fair value assigned to such assets or liabilities. A description of the valuation methodologies used for instruments measured at fair value, including the general classification of such instruments pursuant to the valuation hierarchy, is set forth below: 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 June 30, 2021 and December 31, 2020, 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 As of June 30, 2021 Derivative financial instruments Assets $ 481,000 $ 481,000 $ — $ — Liabilities $ (4,446,000) $ (4,446,000) $ — $ — As of December 31, 2020 Derivative financial instruments Liabilities $ (6,233,000) $ (6,233,000) $ — $ — |
Litigation Matters
Litigation Matters | 6 Months Ended |
Jun. 30, 2021 | |
Litigations Matters [Abstract] | |
Litigation Matters | LITIGATION MATTERS Retterath On August 1, 2013 Mr. Steve Retterath filed a lawsuit against the Company along with several directors, the Company's former CEO, former 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. On May 7, 2018, the Iowa Court denied Mr. Retterath's motions for a new trial and to reconsider the Iowa Court's prior ruling. In February 2020, the Iowa Supreme Court ruled in favor of the Company that the repurchase agreement was valid. In April 2020, the Company closed the repurchase of the membership units held by Mr. Retterath. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | SUBSEQUENT EVENT On July 22, 2021, the Company entered into an amendment to the revolving debt with Home Federal, creating a new $50 million revolving loan in addition to existing debt instruments. The agreements Homeland entered into with Home Federal were: (i) a Third Amendment to Amended and Restated Master Loan Agreement (the “Loan Amendment”); (ii) a Third Amended and Restated Second Supplement to Master Loan Agreement (the “Term Loan Amendment”); (iii) a Revolving Promissory Note (the “Promissory Note”); and (iv) a Fifth Amended and Restated Mortgage (the “Amended Mortgage”). Pursuant to the Loan Amendment, the Company can borrow up to $50 million pursuant to the revolving loan. The amount available pursuant to the revolving loan decreases to $40 million on December 31, 2021 and decreases again to $30 million on May 31, 2022. Interest on the revolving loan accrues at a rate of 30 basis points less than the prime rate. There is a fee on the unused portion of the revolving loan equal to 0.30%. The maturity date of the revolving loan is November 6, 2025. |
Nature of Business and Signific
Nature of Business and Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2021 | |
Nature of Business and Significant Accounting Policies [Abstract] | |
Accounting Estimates | Accounting Estimates |
Cash and Cash Equivalents | Cash & 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 losses in such accounts. Also included in cash and cash equivalents are highly liquid investments that are readily convertible into known amounts of cash, which are subject to an insignificant risk of change in value due to interest rate, quoted price or penalty on withdrawal and have an original maturity of three months or less. |
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. At June 30, 2021 and December 31, 2020, the Company held no trading securities. During the three and six months ended June 30, 2021, the Company had no interest, dividends and net unrealized gains from trading securities. During the three and six months ended June 30, 2020, the Company recorded interest, dividends and net unrealized gains from trading securities of approximately $500,000 and $181,000, respectively. |
Receivables | ReceivablesCredit sales are made primarily to two customers and no collateral is required. The Company carries these accounts receivable at original invoice 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, as the Company has significant influence, under which the Company's share of net income is recognized as income in the Company's statement of operations 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. |
Revenue and Cost Recognition | Revenue and Cost Recognition The Company recognizes Revenue from Contracts with Customers following Accounting Standards Update (ASU) 2014-09. Under the ASU, revenue is recognized when a customer obtains control of promised goods or services in an amount that reflects the consideration the Company expects to receive in exchange for those goods or services. In addition, the standard requires disclosure of the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The Company generally has a single performance obligation in its arrangements with customers. The Company believes for its contracts with customers, control is transferred at a point in time, typically upon delivery to the customers. When the Company performs shipping and handling activities after the transfer of control to the customers (e.g., when control transfers prior to delivery), they are considered as fulfillment activities, and accordingly, the costs are accrued for when the related revenue is recognized. The Company generally expenses sales commissions when incurred because the amortization period would have been less than one year. The following is a description of principal activities from which we generate revenue. Revenues from contracts with customers are recognized when control of the promised goods or services are transferred to our customers, in an amount that reflects the consideration that we expect to receive in exchange for those goods or services. • sales of ethanol; • sales of distiller grains; and • sales of corn oil; All revenue recognized in the statement of operations is considered to be revenue from contracts with customers. The disaggregation of revenue according to product line, along with accounts receivable from contracts with customers, is as disclosed in Note 5. 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. |
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 & Equipment | Property & Equipment 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 an asset group be tested for possible impairment, the Company first compares undiscounted cash flows expected to be generated by the asset group to the carrying value of the asset group. If the carrying value of the asset group is 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. |
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 (loss). Although the contracts are economic hedges of specified risks, they are not designated as and 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. |
Net Income per Unit | Net Income (Loss) per Unit Basic and diluted net income (loss) per unit is computed by dividing net income (loss) 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. |
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 six months ended June 30, 2021, ethanol sales averaged approximately 75% of total revenues, while approximately 19% of revenues were generated from the sale of distiller grains. Corn oil sales attributed approximately 6% of revenues during this time period. For the six months ended June 30, 2021, corn costs averaged approximately 78% of cost of goods sold. The Company's operating and financial performance is largely driven by the prices at which ethanol is sold 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. On January 30, 2020, the World Health Organization declared the coronavirus outbreak (COVID-19) a "Public Health Emergency of International Concern" and on March 11, 2020, declared COVID-19 a pandemic. The impact of COVID-19 has negatively impacted the Company’s operations, suppliers or other vendors, and customer base. Any future quarantines, labor shortages or other disruptions to the Company's operations, or those of their customers, may adversely impact the Company's revenues, ability to provide its services and operating results. In addition, a significant outbreak of epidemic, pandemic or contagious diseases in the human population could result in a widespread health crisis that could adversely affect the economies and financial markets of many countries, including the geographical area in which the Company operates, resulting in an economic downturn that could affect demand for its goods and services. The extent to which the coronavirus continues to impact the Company's results will depend on future developments, which are highly uncertain and cannot be predicted, including new information which may emerge concerning the severity of the coronavirus and actions taken to contain the coronavirus or its impact, among others. |
Inventory (Tables)
Inventory (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | INVENTORY Inventory consisted of the following as of June 30, 2021 and December 31, 2020: June 30, 2021 December 31, 2020 Raw Materials $ 37,954,989 $ 15,909,576 Work in Process 4,434,341 2,923,041 Finished Goods 10,040,097 5,626,791 Totals $ 52,429,427 $ 24,459,408 |
Commitments, Contingencies, A_2
Commitments, Contingencies, Agreements and Subsequent Events (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Commitments, Contingencies and Agreements [Abstract] | |
Revenue from External Customers by Products and Services | Sales and marketing fees related to the agreements in place for the three and six months ended June 30, 2021 and 2020 were approximately as follows: Three Months Ended Six Months Ended Three Months Ended Six Months Ended June 30, 2021 June 30, 2021 June 30, 2020 June 30, 2020 Sales ethanol $ 99,037,000 $ 170,768,000 $ 48,194,000 $ 96,147,000 Sales distiller grains 23,920,000 42,903,000 13,163,000 26,806,000 Sales corn oil 7,733,000 13,390,000 3,681,000 7,122,000 Marketing fees ethanol $ 104,000 $ 258,000 $ 23,000 $ 83,000 Marketing fees distiller grains 218,000 414,000 191,000 396,000 Marketing fees corn oil 32,000 61,000 11,000 40,000 As of June 30, 2021 As of December 31, 2020 Amount due from RPMG $ 5,565,000 $ 1,451,000 Amount due from CHS 3,195,000 2,635,000 |
Lease Obligations (Tables)
Lease Obligations (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Leases [Abstract] | |
Schedule of Operating Leases Minimum Rental Commitments | At June 30, 2021, the Company had the following approximate minimum rental commitments under non-cancelable operating leases for the twelve month period ended June 30: 2022 $ 1,564,000 2023 557,000 2024 156,000 2025 109,000 Thereafter 36,000 Total lease commitments $ 2,422,000 A reconciliation of the undiscounted future payments in the schedule above and the lease liability recognized in the consolidated balance sheet as of June 30, 2021, is shown below. Undiscounted future payments $ 2,422,000 Discount effect (114,000) $ 2,308,000 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivatives Realized and Unrealized Gains (Losses) | The following table represents the approximate amount of realized/unrealized gains (losses) and changes in fair value recognized in earnings on commodity contracts for the three and six months ending June 30, 2021 and 2020 and the fair value of derivatives as of June 30, 2021 and December 31, 2020: Income Statement Classification Realized Gain (Loss) Change In Unrealized Gain (Loss) Total Gain (Loss) Derivatives not designated as hedging instruments: Commodity contracts for the three months ended June 30, 2021 Cost of Goods Sold $ (13,143,000) $ (1,700,000) $ (14,843,000) Commodity contracts for the three months ended June 30, 2020 Revenue $ — $ (1,176,000) $ (1,176,000) Cost of Goods Sold 1,433,000 (1,083,000) 350,000 Total $ 1,433,000 $ (2,259,000) $ (826,000) Commodity contracts for the six months ended June 30, 2021 Cost of Goods Sold $ (18,458,000) $ 2,267,000 $ (16,191,000) Commodity contracts for the six months ended June 30, 2020 Revenue $ — $ (1,176,000) $ (1,176,000) Cost of Goods Sold 4,183,000 (1,236,000) 2,947,000 Total $ 4,183,000 $ (2,412,000) $ 1,771,000 |
Schedule of Derivatives Balance Sheet Classification | Balance Sheet Classification June 30, 2021 December 31, 2020 Futures contracts In gain position $ 481,000 $ — In loss position (4,446,000) (6,233,000) Cash held by broker 5,196,000 7,074,000 Current Asset $ 1,231,000 $ 841,000 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Schedule of Financial Assets and Financial Liabilities Measured at Fair Value | The following table summarizes financial assets and financial liabilities measured at fair value on a recurring basis as of June 30, 2021 and December 31, 2020, 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 As of June 30, 2021 Derivative financial instruments Assets $ 481,000 $ 481,000 $ — $ — Liabilities $ (4,446,000) $ (4,446,000) $ — $ — As of December 31, 2020 Derivative financial instruments Liabilities $ (6,233,000) $ (6,233,000) $ — $ — |
Nature of Business and Signif_2
Nature of Business and Significant Accounting Policies - Product (Details) - Ethanol [Member] gal in Millions | 6 Months Ended |
Jun. 30, 2021gal | |
Product Information [Line Items] | |
Annual Production Capacity, Minimum | 100 |
Annual Production Capacity, Current | 190 |
Nature of Business and Signif_3
Nature of Business and Significant Accounting Policies - Trading Securities (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Mar. 31, 2021 | |
Debt and Equity Securities, FV-NI [Line Items] | |||||
Number of units redeemed | 25,860 | ||||
Director [Member] | |||||
Debt and Equity Securities, FV-NI [Line Items] | |||||
Due to former member | $ 30,000,000 | ||||
Number of units redeemed | 25,860 | ||||
Other Nonoperating Income (Expense) [Member] | |||||
Debt and Equity Securities, FV-NI [Line Items] | |||||
Net realized and unrealized gains (losses) | $ 0 | $ 500,000 | $ 0 | $ 181,000 |
Nature of Business and Signif_4
Nature of Business and Significant Accounting Policies - Committed Shares to be Redeemed and Net Income per Unit (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | |
Related Party Transaction [Line Items] | |||
Number of units redeemed | 25,860 | ||
Director [Member] | |||
Related Party Transaction [Line Items] | |||
Number of units redeemed | 25,860 | ||
Payments to repurchase units | $ 30 |
Nature of Business and Signif_5
Nature of Business and Significant Accounting Policies - Risks and Uncertainties (Details) | 6 Months Ended |
Jun. 30, 2021 | |
Revenue, Segment Benchmark [Member] | Product Concentration Risk | Ethanol [Member] | |
Concentration Risk [Line Items] | |
Concentration Risk, Percentage | 75.00% |
Revenue, Segment Benchmark [Member] | Product Concentration Risk | Distillers Grains [Member] | |
Concentration Risk [Line Items] | |
Concentration Risk, Percentage | 19.00% |
Revenue, Segment Benchmark [Member] | Product Concentration Risk | Corn Oil [Member] | |
Concentration Risk [Line Items] | |
Concentration Risk, Percentage | 6.00% |
Cost of Goods and Service Benchmark | Cost of Goods & Services | Corn [Member] | |
Concentration Risk [Line Items] | |
Concentration Risk, Percentage | 78.00% |
Nature of Business and Signif_6
Nature of Business and Significant Accounting Policies - Investments (Details) | Jun. 30, 2021 |
Renewable Products Marketing Group, LLC [Member] | |
Schedule of Equity Method Investments [Line Items] | |
Ownership percentage | 20.00% |
Inventory (Details)
Inventory (Details) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 |
Inventory Disclosure [Abstract] | ||
Raw Materials | $ 37,954,989 | $ 15,909,576 |
Work in Process | 4,434,341 | 2,923,041 |
Finished Goods | 10,040,097 | 5,626,791 |
Inventory | $ 52,429,427 | $ 24,459,408 |
Debt (Details)
Debt (Details) | 6 Months Ended | |
Jun. 30, 2021USD ($)loan_agreement | Dec. 31, 2020USD ($) | |
Home Federal Savings Bank [Member] | ||
Debt Instrument [Line Items] | ||
Number of loan agreements | loan_agreement | 1 | |
Line of Credit [Member] | Home Federal Savings Bank [Member] | Term Revolving Loan [Member] | ||
Debt Instrument [Line Items] | ||
Line of Credit Facility, Maximum Borrowing Capacity | $ 50,000,000 | |
Debt Instrument, Basis Spread on Variable Rate | 0.60% | |
Line of Credit Facility, Interest Rate at Period End | 2.65% | |
Line of Credit Facility, Fair Value of Amount Outstanding | $ 15,200,000 | $ 0 |
Line of Credit Facility, Remaining Borrowing Capacity | 34,800,000 | $ 50 |
Total expansion project [Member] | ||
Debt Instrument [Line Items] | ||
Estimated expansion project costs | $ 42,000,000 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Mar. 31, 2021 | Dec. 31, 2020 | |
Related Party Transaction [Line Items] | ||||||
Number of units redeemed | 25,860 | |||||
Purchases from Related Party | $ 434,000 | $ 509,000 | $ 2,470,000 | $ 1,171,000 | ||
Due to Related Parties | $ 0 | $ 0 | $ 28,000 | |||
Director [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Number of units redeemed | 25,860 | |||||
Due to former member | $ 30,000,000 |
Commitments, Contingencies, A_3
Commitments, Contingencies, Agreements and Subsequent Events - Supply Commitments (Details) lb in Millions | 6 Months Ended | |
Jun. 30, 2021USD ($)gallbtons | Dec. 31, 2020USD ($) | |
Supply Commitment [Line Items] | ||
Automatic renewal period | 1 year | |
Period of written notice prior to current term expiration | 90 days | |
Ethanol [Member] | Supply Commitment [Member] | Fixed-price Contract | ||
Supply Commitment [Line Items] | ||
Supply Commitment, Minimum Amount at Fixed Price Levels, Gallons | 3 | |
Ethanol [Member] | Supply Commitment [Member] | Basis Price Contract | ||
Supply Commitment [Line Items] | ||
Supply Commitment, Minimum Amount at Basis Price Levels, Mass | 45,000,000 | |
Corn Oil [Member] | Supply Commitment [Member] | ||
Supply Commitment [Line Items] | ||
Supply Commitment, Remaining Minimum Amount Committed, Weight | lb | 5 | |
Distillers Grains [Member] | Supply Commitment [Member] | ||
Supply Commitment [Line Items] | ||
Supply Commitment, Remaining Minimum Amount Committed, Weight | tons | 67,000 | |
Industrial Ethanol | Supply Commitment [Member] | ||
Supply Commitment [Line Items] | ||
Supply Commitment, Minimum Amount at Fixed Price Levels, Gallons | 0 | |
Investor [Member] | ||
Supply Commitment [Line Items] | ||
Equity Method Investments | $ | $ 2,616,000 | $ 2,527,000 |
Commitments, Contingencies, A_4
Commitments, Contingencies, Agreements and Subsequent Events - Related Party (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Related Party Transaction [Line Items] | |||||
Revenue | $ 130,691,378 | $ 63,862,205 | $ 227,068,328 | $ 128,899,443 | |
RPMG [Member] | |||||
Related Party Transaction [Line Items] | |||||
Related Party Transaction, Due from (to) Related Party | 5,565,000 | 5,565,000 | $ 1,451,000 | ||
CHS [Member] | |||||
Related Party Transaction [Line Items] | |||||
Related Party Transaction, Due from (to) Related Party | 3,195,000 | 3,195,000 | $ 2,635,000 | ||
Ethanol [Member] | Investor [Member] | |||||
Related Party Transaction [Line Items] | |||||
Sales | 99,037,000 | 48,194,000 | 170,768,000 | 96,147,000 | |
Marketing Fees | 104,000 | 23,000 | 258,000 | 83,000 | |
Distillers Grains [Member] | |||||
Related Party Transaction [Line Items] | |||||
Sales Commissions and Fees | 218,000 | 191,000 | 414,000 | 396,000 | |
Revenue | 23,920,000 | 13,163,000 | 42,903,000 | 26,806,000 | |
Corn Oil [Member] | Investor [Member] | |||||
Related Party Transaction [Line Items] | |||||
Sales | 7,733,000 | 3,681,000 | 13,390,000 | 7,122,000 | |
Marketing Fees | $ 32,000 | $ 11,000 | $ 61,000 | $ 40,000 |
Commitments, Contingencies, A_5
Commitments, Contingencies, Agreements and Subsequent Events - Purchase Commitments (Details) gal in Millions | 6 Months Ended | |
Jun. 30, 2021USD ($)MMBTUgalbu | Jun. 30, 2020MMBTU | |
Industrial Ethanol | Supply Commitment [Member] | ||
Long-term Purchase Commitment [Line Items] | ||
Supply Commitment, Minimum Amount at Fixed Price Levels, Gallons | gal | 0 | |
Corn [Member] | ||
Long-term Purchase Commitment [Line Items] | ||
Estimated expansion project costs | $ 56,086,000 | |
Long-term Purchase Commitment, Minimum Mass Required | bu | 2,507,000 | |
Natural Gas [Member] | ||
Long-term Purchase Commitment [Line Items] | ||
Long-term Purchase Commitment, Minimum Energy Volume Required | MMBTU | 0 | 1,932,000 |
Public Utilities | ||
Long-term Purchase Commitment [Line Items] | ||
Long-term Purchase Commitment, Period | 12 months | |
Purchase Commitment, Remaining Minimum Amount Committed | $ 516,000 |
Commitments, Contingencies, A_6
Commitments, Contingencies, Agreements and Subsequent Events - Construction Agreements (Details) | 6 Months Ended |
Jun. 30, 2021USD ($) | |
Corn [Member] | |
Long-term Purchase Commitment [Line Items] | |
Estimated expansion project costs | $ 56,086,000 |
Commitments, Contingencies, A_7
Commitments, Contingencies, Agreements and Subsequent Events (Details) - Distillers Grains [Member] | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021USD ($)tons | Jun. 30, 2020USD ($) | Jun. 30, 2021USD ($)tons | Jun. 30, 2020USD ($) | |
Product Information [Line Items] | ||||
Sales Commissions and Fees | $ 218,000 | $ 191,000 | $ 414,000 | $ 396,000 |
Supply Commitment [Line Items] | ||||
Sales Commissions and Fees | $ 218,000 | $ 191,000 | $ 414,000 | $ 396,000 |
Supply Commitment [Member] | ||||
Supply Commitment [Line Items] | ||||
Supply Commitment, Remaining Minimum Amount Committed, Weight | tons | 67,000 | 67,000 |
Lease Obligations (Details)
Lease Obligations (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Operating Leased Assets [Line Items] | |||||
Lease term (up to) | 7 years | 7 years | |||
Right-of-use asset operating lease | $ 2,307,790 | $ 2,307,790 | $ 3,116,941 | ||
Weighted average discount rate (percent) | 4.79% | 4.79% | |||
Approximate Minimum Rental Commitments | |||||
Total undiscounted lease commitments | $ 2,422,000 | $ 2,422,000 | |||
Weighted average remaining lease term (years) | 1 year 4 months 20 days | 1 year 4 months 20 days | |||
Railroad Transportation Equipment [Member] | |||||
Operating Leased Assets [Line Items] | |||||
Rent expense | $ 492,000 | $ 953,000 | |||
Rent expense | $ 444,000 | $ 888,000 | |||
Approximate Minimum Rental Commitments | |||||
2021 | 1,564,000 | 1,564,000 | |||
2022 | 557,000 | 557,000 | |||
2023 | 156,000 | 156,000 | |||
2024 | 109,000 | 109,000 | |||
Thereafter | 36,000 | 36,000 | |||
Total undiscounted lease commitments | $ 2,422,000 | $ 2,422,000 |
Lease Obligations - Reconciliat
Lease Obligations - Reconciliation of Undiscounted Future Payments (Details) | Jun. 30, 2021USD ($) |
Reconciliation of Undiscounted Future Payments | |
Total undiscounted lease commitments | $ 2,422,000 |
Discount effect | (114,000) |
Operating lease liability | 2,308,000 |
Railroad Transportation Equipment [Member] | |
Reconciliation of Undiscounted Future Payments | |
Total undiscounted lease commitments | 2,422,000 |
Operating Leased Assets [Line Items] | |
2022 | $ 557,000 |
Derivative Instruments (Details
Derivative Instruments (Details) bu in Millions | 6 Months Ended |
Jun. 30, 2021bu | |
Corn [Member] | |
Derivative [Line Items] | |
Concentration Risk, Amount of Material | 65 |
Designated as Hedging Instrument [Member] | Corn [Member] | |
Derivative [Line Items] | |
Derivative, Nonmonetary Notional Amount, Percent of Required Need, Coverage | 27.00% |
Designated as Hedging Instrument [Member] | Corn [Member] | Minimum [Member] | |
Derivative [Line Items] | |
Derivative, Nonmonetary Notional Amount, Percent of Required Need, Yearly Average | 5.00% |
Designated as Hedging Instrument [Member] | Corn [Member] | Maximum [Member] | |
Derivative [Line Items] | |
Derivative, Nonmonetary Notional Amount, Percent of Required Need, Yearly Average | 28.00% |
Derivative Instruments - Income
Derivative Instruments - Income Statement (Details) - Commodity Contract [Member] - Not Designated as Hedging Instrument [Member] - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Realized Gain (Loss) | $ 1,433,000 | $ 4,183,000 | ||
Change In Unrealized Gain (Loss) | (2,259,000) | (2,412,000) | ||
Total Gain (Loss) | (826,000) | 1,771,000 | ||
Cost of Sales [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Realized Gain (Loss) | $ (13,143,000) | 1,433,000 | $ (18,458,000) | 4,183,000 |
Change In Unrealized Gain (Loss) | (1,700,000) | (1,083,000) | 2,267,000 | (1,236,000) |
Total Gain (Loss) | $ (14,843,000) | 350,000 | $ (16,191,000) | 2,947,000 |
Sales | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Realized Gain (Loss) | 0 | 0 | ||
Change In Unrealized Gain (Loss) | (1,176,000) | (1,176,000) | ||
Total Gain (Loss) | $ (1,176,000) | $ (1,176,000) |
Derivative Instruments - Balanc
Derivative Instruments - Balance Sheet (Details) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 |
Other Current Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Other Receivables from Broker-Dealers and Clearing Organizations | $ 5,196,000 | |
Other Payables to Broker-Dealers and Clearing Organizations | $ 7,074,000 | |
Derivative Instruments Not Designated as Hedging Instruments, Asset, at Fair Value | 1,231,000 | 841,000 |
Commodity Contract [Member] | Other Current Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Fair Value, Gross Asset | 481,000 | 0 |
Commodity Contract [Member] | Other Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability | $ (4,446,000) | $ (6,233,000) |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - Fair Value, Recurring [Member] - Commodity Contract [Member] - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative Liability | $ (4,446,000) | $ (6,233,000) |
Assets | 481,000 | |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative Liability | (4,446,000) | (6,233,000) |
Assets | 481,000 | |
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative Liability | 0 | 0 |
Assets | 0 | |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative Liability | 0 | $ 0 |
Assets | $ 0 |
Subsequent Events (Details)
Subsequent Events (Details) - Line of Credit [Member] - Term Revolving Loan [Member] - Home Federal Savings Bank [Member] - USD ($) | 3 Months Ended | 6 Months Ended | 52 Months Ended | |||
Sep. 30, 2021 | Jun. 30, 2021 | Nov. 25, 2025 | May 31, 2022 | Dec. 31, 2021 | Jul. 21, 2021 | |
Subsequent Event [Line Items] | ||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 50,000,000 | |||||
Debt Instrument, Basis Spread on Variable Rate | 0.60% | |||||
Subsequent Event [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 30 | $ 40 | $ 50,000,000 | |||
Debt Instrument, Basis Spread on Variable Rate | 0.30% | |||||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.30% |