Highwater Ethanol (HEOL) 10-Q 10 Mar 15 2014 Q1 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information Document	3 Months Ended
	Jan. 31, 2015	Mar. 10, 2015
Entity Information [Line Items]
Entity Registrant Name	HIGHWATER ETHANOL LLC
Entity Central Index Key	1371451
Current Fiscal Year End Date	-21
Entity Filer Category	Non-accelerated Filer
Document Type	10-Q
Document Period End Date	31-Jan-15
Document Fiscal Year Focus	2014
Document Fiscal Period Focus	Q1
Amendment Flag	FALSE
Entity Common Stock, Shares Outstanding		4,953

Condensed_Balance_Sheets

Condensed Balance Sheets (USD $)	Jan. 31, 2015	Oct. 31, 2014
Current Assets
Cash and cash equivalents	$13,519,436	$15,511,589
Derivative instruments	205,463	257,934
Accounts receivable	2,947,876	4,382,371
Inventories	5,058,740	4,295,191
Prepaids and other	84,548	55,650
Total current assets	21,816,063	24,502,735
Property and Equipment
Land and land improvements	6,881,124	6,881,124
Buildings	38,499,551	38,489,826
Office equipment	589,727	589,727
Plant and process equipment	64,118,390	64,015,750
Vehicles	52,994	52,994
Construction in Progress	705,301	317,477
Gross property and equipment	110,847,087	110,346,898
Less accumulated depreciation	-34,562,394	-32,862,880
Net property and equipment	76,284,693	77,484,018
Other Assets
Investments	2,080,862	2,403,452
Debt issuance costs, net	215,210	231,347
Deposits	191,457	191,457
Total other assets	2,487,529	2,826,256
Total Assets	100,588,285	104,813,009
Current Liabilities
Accounts payable	1,837,611	1,897,610
Accrued expenses	782,046	1,034,907
Customer deposits	434,386	0
Current maturities of long-term debt	4,306,422	4,298,766
Total Current Liabilities	7,360,465	7,231,283
Long-Term Debt	23,155,152	24,315,010
Commitments and Contingencies
Members' Equity
Members' equity, 4,953 units outstanding	70,072,668	73,266,716
Total Liabilities and Members’ Equity	$100,588,285	$104,813,009

Condensed_Balance_Sheets_Paren

Condensed Balance Sheets Parenthetical	Jan. 31, 2015	Oct. 31, 2014
Members' equity, units outstanding	4,953	4,953

Condensed_Statements_of_Operat

Condensed Statements of Operations (USD $)	3 Months Ended
	Jan. 31, 2015	Jan. 31, 2014
Revenues	$30,081,371	$38,587,712
Cost of Goods Sold	26,815,886	29,387,379
Gross Profit	3,265,485	9,200,333
Operating Expenses	653,334	648,843
Operating Profit	2,612,151	8,551,490
Other Income (Expense)
Interest income	4,222	7,257
Other income	8,295	2,368
Interest expense	-271,401	-911,062
Gain on interest rate swap	0	182,429
Income (loss) from equity method investment	24,810	-78,940
Total other expense, net	-234,074	-797,948
Net Income	$2,378,077	$7,753,542
Weighted Average Units Oustanding	4,953	4,953
Net Income Per Unit	$480.13	$1,565.42
Distributions Per Unit	$1,125	$0

Condensed_Statements_of_Compre

Condensed Statements of Comprehensive Income (Loss) (USD $)	3 Months Ended
	Jan. 31, 2015	Jan. 31, 2014
Net Income	$2,378,077	$7,753,542
Other Comprehensive Income
Unrealized loss on restricted marketable securities	0	-1,480
Comprehensive Income	$2,378,077	$7,752,062

Condensed_Statements_of_Cash_F

Condensed Statements of Cash Flows (USD $)	3 Months Ended
	Jan. 31, 2015	Jan. 31, 2014
Cash Flows from Operating Activities
Net Income	$2,378,077	$7,753,542
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation and amortization	1,715,652	1,644,609
(Income) loss from equity method investments	-24,810	78,940
Change in assets and liabilities
Restricted marketable securities	0	33,692
Deposits with broker	0	273,020
Accounts receivable	1,434,495	81,537
Inventories	-763,549	-1,136,921
Derivative instruments	52,471	-261,189
Prepaids and other	-28,898	39,029
Customer deposits	434,385	645,839
Accounts payable	-100,683	338,427
Accrued expenses	-252,861	365,874
Net cash provided by operating activities	4,844,279	9,856,399
Cash Flows from Investing Activities
Capital expenditures	-459,505	-181,317
Investment in equity method investment	347,400	-77,000
Net cash used in investing activities	-112,105	-258,317
Cash Flows from Financing Activities
Payments on long-term debt	-1,152,202	-2,756,629
Member distributions	-5,572,125	0
Net cash used in financing activities	-6,724,327	-2,756,629
Net Increase (Decrease) in Cash and Cash Equivalents	-1,992,153	6,841,453
Cash and cash equivalents – Beginning of Period	15,511,589	7,869,188
Cash and cash equivalents – End of Period	13,519,436	14,710,641
Supplemental Cash Flow Information
Cash paid for interest expense	246,358	842,633
Supplemental Disclosure of Noncash Financing and Investing Activities
Unrealized loss on restricted marketable securities	0	-1,480
Capital expenditures included in accounts payable	$40,684	$80,883

Summary_of_Significant_Account

Summary of Significant Accounting Policies	3 Months Ended
	Jan. 31, 2015
Summary of Significant Accounting Policies [Abstract]
Summary of Significant Accounting Policies	SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
	The accompanying unaudited condensed interim 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.  The accompanying balance sheet and related notes as of October 31, 2014 are derived from the audited financial statements as of that date. These condensed 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 October 31, 2014, contained in the Company’s Form 10-K.
	In the opinion of management, the interim condensed financial statements reflect all adjustments, consisting of only normal recurring adjustments, considered necessary for fair presentation of the Company's financial position as of January 31, 2015 and the results of operations and cash flows for all periods presented.
	Nature of Business
	Highwater Ethanol, LLC, (a Minnesota Limited Liability Company) operates a 50 million gallon per year ethanol plant in Lamberton, Minnesota. The Company produces and sells fuel ethanol and co-products of the fuel ethanol production process, in the continental United States, Mexico and Canada.
	Accounting Estimates
	Management uses estimates and assumptions in preparing these financial statements in accordance with generally accepted accounting principles. Those estimates and assumptions affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities, and the reported revenues and expenses. The Company uses estimates and assumptions in accounting for significant matters, among others, the carrying value of property and equipment and related impairment testing, inventory valuation, and derivative instruments. Actual results could differ from those estimates and such differences may be material to the financial statements. The Company periodically reviews estimates and assumptions and the effects of revisions are reflected in the period in which the revision is made.
	Revenue Recognition
	The Company generally sells ethanol and related products pursuant to marketing agreements. The Company’s products are shipped FOB shipping point. Revenues are recognized when the customer has taken title and has assumed the risks and rewards of ownership, prices are fixed or determinable and collectability is reasonably assured. For ethanol sales, title transfers when loaded into the rail car and for distiller’s grains when the loaded rail cars leave the plant facility.
	In accordance with the Company’s agreements for the marketing and sale of ethanol and related products, marketing fees and freight due to the marketers are deducted from the gross sales price at the time incurred. Revenue is recorded net of these marketing fees and freight as they do not provide an identifiable benefit that is sufficiently separable from the sale of ethanol and related products.
	Derivative Instruments
	Derivatives are recognized in the balance sheet and the measurement of these instruments is at fair value. In order for a derivative to qualify as a hedge, specific criteria must be met and appropriate documentation maintained. Gains and losses from derivatives that do not qualify as hedges, or are undesignated, must be recognized immediately in earnings. If the derivative does qualify as a hedge, depending on the nature of the hedge, changes in the fair value of the derivative will be either offset against the change in fair value of the hedged assets, liabilities, or firm commitments through earnings or recognized in other comprehensive income until the hedged item is recognized in earnings. Changes in the fair value of undesignated derivatives are recognized currently in earnings.
	Contracts are evaluated to determine whether the contracts are derivatives. Certain contracts that literally meet the definition of a derivative may be exempted 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 accounting as derivatives, therefore, are not marked to market in our financial statements.
	The Company entered into corn commodity-based and natural gas derivatives in order to protect cash flows from fluctuations caused by volatility in prices. These derivatives are not designated as effective hedges for accounting purposes. For derivative instruments that are not accounted for as hedges, or for the ineffective portions of qualifying hedges, the change in fair value is recorded through earnings in the period of change. Corn and natural gas derivative changes in fair market value are included in costs of goods sold.
	Fair Value of Financial Instruments
	The carrying value of cash and cash equivalents, accounts receivable, and accounts payable, and other working capital items approximate fair value at January 31, 2015 due to the short maturity nature of these instruments.
	The Company believes the carrying value of the derivative instruments approximates fair value based on quoted market prices or widely accepted valuation techniques including discounted cash flow analysis which includes observable market-based inputs.
	The Company believes the carrying amount of the long-term debt approximates the fair value due to a significant portion of total indebtedness containing variable interest rates and that this rate is a market interest rate for these borrowings.
	Equity Method Investments
	The Company has an investment interest in an unlisted company, Renewable Products Marketing Group, LLC (RPMG), who markets the Company’s ethanol. This investment is a flow-through entity and is being accounted for by 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. Distributions or dividends received from the investment are treated as a reduction of the investment account. The Company has a 7% interest in RPMG. The Company consistently follows the practice of recognizing the net income based on the most recent reliable data. Therefore, the net income which is reported in the Company's income statement for the quarter ended January 31, 2015 is based on the investee’s results of operations for the three month period ended December 31, 2014.
	The Company is one of eight member owner-investors in Lawrenceville Tank, LLC. The Company has a 7% ownership in Lawrenceville Tank, LLC which owns and operates a trans load/tank facility in Atlanta, Georgia area. This provides another area of opportunity for the Company’s ethanol production to be marketed by RPMG.
	Railcar Damages Accrual
	In accordance with the Company's railcar lease agreements, the Company is required to pay for damages considered to be in excess of normal wear and tear at the termination of the lease. The Company accrues the estimated cost for railcar damages over the term of the lease.

Uncertainties

Uncertainties	3 Months Ended
	Jan. 31, 2015
Uncertainties [Abstract]
Uncertainties	UNCERTAINTIES
	The Company derives substantially all of its revenues from the sale of ethanol and distillers grains. These products are commodities and the market prices for these products display substantial volatility and are subject to a number of factors which are beyond the control of the Company. The Company’s most significant manufacturing inputs are corn and natural gas. The price of these commodities is also subject to substantial volatility and uncontrollable market factors. In addition, these input costs do not necessarily fluctuate with the market prices for ethanol and distillers grains. As a result, the Company is subject to significant risk that its operating margins can be reduced or eliminated due to the relative movements in the market prices of its products and major manufacturing inputs. As a result, market fluctuations in the price of or demand for these commodities can have a significant adverse effect on the Company’s operations, profitability, and availability of cash flows to make loan payments and maintain compliance with the loan agreement.

Fair_Value_Measurements

Fair Value Measurements	3 Months Ended
	Jan. 31, 2015
Fair Value Measurements [Abstract]
Fair Value Measurements	FAIR VALUE MEASUREMENTS
	The following table provides information on those assets (liabilities) measured at fair value on a recurring basis.
		Fair Value as of			Fair Value Measurement Using
		January 31, 2015			Level 1			Level 2		Level 3
	Derivative instruments - commodities	$	(400,375	)	$	(400,375	)	$	—	$	—
		Fair Value as of			Fair Value Measurement Using
		31-Oct-14			Level 1			Level 2		Level 3
	Derivative instruments - commodities	$	(339,011	)	$	(339,011	)	$	—	$	—
	The Company determines the fair values of commodities by obtaining the fair value measurements from an independent pricing service based on dealer quotes and live trading levels from the Chicago Board of Trade.

Inventories

Inventories	3 Months Ended
	Jan. 31, 2015
Inventories [Abstract]
Inventories	INVENTORIES
	Inventories consisted of the following at:
		January 31, 2015		31-Oct-14
	Raw materials	$	1,923,313	$	1,653,015
	Spare parts and supplies	1,762,895		1,603,984
	Work in process	705,205		710,583
	Finished goods	667,327		327,609
	Total	$	5,058,740	$	4,295,191

Derivative_Instruments

Derivative Instruments	3 Months Ended
	Jan. 31, 2015
Derivative Instruments [Abstract]
Derivative Instruments	DERIVATIVE INSTRUMENTS
	As of January 31, 2015, the Company had entered into corn derivative instruments, which are required to be recorded as either assets or liabilities at fair value in the balance sheet. The Company uses these instruments to manage risks from changes in market rates and prices. They are not used for speculative purposes. Derivatives qualify for treatment as hedges when there is a high correlation between the change in fair value of the derivative instrument and the related change in value of the underlying hedged item. The Company may designate the hedging instruments based upon the exposure being hedged as a fair value hedge, a cash flow hedge or a hedge against foreign currency exposure. The derivative instruments outstanding at January 31, 2015 are not designated as effective hedges for accounting purposes.
	Commodity Contracts
	As of January 31, 2015, the Company has open positions for 800,000 bushels of corn. Management expects all open positions outstanding as of January 31, 2015 to be realized within the next twelve months.
	The following tables provide details regarding the Company's derivative instruments at January 31, 2015 and October 31, 2014:
	Instrument	Balance Sheet location		31-Jan-15			31-Oct-14
	Corn, natural gas and ethanol contracts
	In gain position			$	438		$	—
	In loss position			(400,813		)	(339,011		)
	Deposits with broker			605,838			596,945
		Current assets		$	205,463		$	257,934
	The following table provide details regarding the gains (losses) from the Company's derivative instruments in the statements of operations, none of which are designated as hedging instruments:
			Statement of		Three Months Ended January 31,
			Operations location		2015			2014
	Interest rate swap		Other income (expense)		$	—		$	182,429
	Ethanol contracts		Revenues		(34,952		)	39,106
	Corn contracts		Cost of goods sold		171,302			390,483
	Natural gas contracts		Cost of goods sold		(41,783		)	(109,054		)

Debt_Financing

Debt Financing	3 Months Ended
	Jan. 31, 2015
Debt Financing [Abstract]
Debt Financing	DEBT FINANCING
	Long-term debt consists of the following at:
		January 31, 2015		31-Oct-14
	Variable Rate Term Loan (AgStar)	$	25,544,998	$	26,509,288
	Capital lease, see terms below	1,916,576		2,104,488
	Total	27,461,574		28,613,776
	Less amounts due within one year	4,306,422		4,298,766
	Net long-term debt	$	23,155,152	$	24,315,010
	Bank Financing
	On September 22, 2014, the Company entered into an Amended and Restated Credit Agreement with Ag Star Financial Services, PCA ("AgStar") which amended the Credit Agreement originally dated February 27, 2014. The Amended and Restated Credit provides for a $27,000,000 Term Loan, a $5,000,000 Term Revolving Loan and a $5,000,000 Revolving Line of Credit subject to terms described in the Amended and Restated Credit Agreement and summarized below. The Company pays an annual facility fee of $10,000 to AgStar. Effective February 26, 2015, the Company entered into a First Amendment to Amended and Restated Credit Agreement with Ag Star extending the maturity date on its Revolving Line of Credit until March 1, 2016.
	Term Loan
	The Term Loan is for $27,000,000 with a variable interest rate that is the greater of the 30-day LIBOR rate plus 325 basis points with no minimum interest rate. Monthly principal payments are due on the Term Loan of approximately $321,000 plus accrued interest. Payments are based upon a seven year amortization and the Term Loan is fully amortized. The outstanding balance on this note was $25,544,998 at January 31, 2015. The Company may convert the Term Loan to a fixed rate loan, subject to certain conditions as described in the Amended and Restated Credit Agreement and with the consent of AgStar.
	Term Revolving Loan
	The Term Revolving Loan is for up to $5,000,000 with a variable interest rate that is the 30-day LIBOR rate plus 325 basis points with no minimum interest rate. The Term Revolving Loan may be advanced, repaid and re-borrowed during the term. Monthly interest payments are due on the Term Revolving Loan. Payment of all amounts outstanding is due on September 22, 2021. The outstanding balance was $0 at January 31, 2015 and October 31, 2014. As of January 31, 2015, the Company has $2,000,000 in letters of credit outstanding which reduce the amount available under the Term Revolving Loan. The Company pays interest at a rate of 1.5% on amounts outstanding for the letters of credit.
	Revolving Line of Credit
	The Company has a Revolving Line of Credit available equal to the amount of the Borrowing Base, with a maximum limit of $5,000,000. The Borrowing Base will vary and may at times be less than $5,000,000. Effective February 26, 2015, the Company extended the expiration date on the Revolving Line of Credit to March 1, 2016. The Revolving Line of Credit accrues interest at the 30-day LIBOR rate plus 325 basis points with no minimum interest rate. Monthly interest payments are due on the Revolving Line of Credit. The outstanding balance was $0 at January 31, 2015 and October 31, 2014.
	Covenants and other Miscellaneous Terms
	The loan facility with AgStar is secured by substantially all business assets. The Company executed a mortgage creating a first lien on its real estate and plant and a security interest in all personal property located on the premises and assigned all rents and leases to property, marketing contracts, risk management services contract, and natural gas, electricity, water service and grain procurement agreements.
	The Company is also subject to various financial and non-financial covenants that limit distributions and debt and require minimum debt service coverage, tangible net worth, and working capital requirements. The fixed charge coverage ratio is no less than 1.15:1.00 and is measured annually by comparing adjusted EBITDA to scheduled payments of principal and interest plus capital expenditures and distributions. The minimum net worth is no less than $42,000,000, which is calculated as the excess of total assets excluding various disallowed assets per the Amended and Restated Credit Agreement over total liabilities, and is measured quarterly. The minimum working capital is $8,250,000, which is calculated as current assets plus the amount available for drawing under our Term Revolving Loan, and undrawn amounts on outstanding letters of credit less current liabilities, and is measured quarterly.
	The Company is limited to annual capital expenditures of $2,000,000 without prior approval, incurring additional debt over certain amounts without prior approval, and making additional investments as described in the Amended and Restated Credit Agreement, and is also prohibited from making distributions to members in excess of 50% of net income in a given year without prior approval.
	The Company is also required to pay unused commitment fees for the Term Revolving Loan and the Revolving Line of Credit as defined in the Amended and Restated Credit Agreement.
	Capital Lease
	The Company entered into a series of related definitive agreements, dated September 26, 2013, with Butamax which include an Easement for Construction and Process Demonstration Agreement, an Equipment Lease Agreement, a Technology License Agreement, a Technology Demonstration Risk Reduction Agreement and a Security Agreement (collectively, the "Agreements") pursuant to which Butamax has agreed to construct, install and lease its corn oil separation system and license to the Company its proprietary, patent-protected corn oil separation technology.  Pursuant to the Agreements, the Company agreed to give Butamax access to the plant in order to construct, install, operate, test and commercially validate a corn oil separation system. Butamax retains ownership of the corn oil separation system and technology but agrees to lease it to the Company for a term of 120 months subject to Butamax's right to remove the system if the Company is in breach of the Agreements. The term of the lease may also be extended or terminated pursuant to the terms of the Agreements. The Company is responsible for repairs and maintenance of the system and bear the risk of loss. In return, the Company agrees to payment of certain license fees which are subject to being reduced under the terms of the Agreements if the corn oil separation system does not meet certain performance goals.  The Agreements provide that the corn oil separation system shall be conveyed to the Company at the end of the term so long as the Company is not in breach of the Agreements. The Company granted a security interest to Butamax in the corn oil separation system to secure its obligations under the Agreements.  Pursuant to the Agreements, the Company agreed, subject to certain obligations of confidentiality, to provide Butamax with Company information on a monthly basis including business and financial information and have granted Butamax the option to have a representative present in board and committee meetings as an observer.  The Company also agreed to give Butamax notice in the event of an issuance or sale of membership interests or convertible debt instruments.  The Company recorded this as a capital lease in April 2014, and the balance as of January 31, 2015 was $1,916,576.
	The estimated maturities of the long-term debt at January 31, 2015 are as follows:
	2015	$	4,306,422
	2016	4,659,252
	2017	4,200,952
	2018	3,857,160
	2019	3,857,160
	2020 and thereafter	6,580,628
	Long-term debt	$	27,461,574

Commitments_and_Contingencies

Commitments and Contingencies	3 Months Ended
	Jan. 31, 2015
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	COMMITMENTS AND CONTINGENCIES
	Regulatory Agencies
	The Company is subject to oversight from regulatory agencies regarding environmental concerns which arise in the ordinary course of its business.
	Forward Contracts
	At January 31, 2015, the Company also has approximately 1,064,300 MMBTU of forward fixed price natural gas purchase contracts for various delivery periods through March 2016. The Company also has approximately 1,220,600 gallons of forward fixed price denaturant purchase contracts for various delivery periods through December 2015. In addition, the Company has forward dried distiller grains sales contracts of approximately 30,000 tons at various fixed prices for various delivery periods through October 2015.

Subsequent_Event

Subsequent Event	3 Months Ended
	Jan. 31, 2015
Subsequent Event [Abstract]
Subsequent Events	SUBSEQUENT EVENTS
	Effective February 26, 2015, the Company entered into a First Amendment to Amended and Restated Credit Agreement with Ag Star extending the maturity date on its Revolving Line of Credit until March 1, 2016. In addition, AgStar consented to the Company exceeding the $2,000,000 limit on capital expenditures for expenses related to the construction of new grain storage facilities and a water pipeline.

Accounting_Policies

Accounting Policies	3 Months Ended
	Jan. 31, 2015
Summary of Significant Accounting Policies [Abstract]
Accounting Estimates	Accounting Estimates
	Management uses estimates and assumptions in preparing these financial statements in accordance with generally accepted accounting principles. Those estimates and assumptions affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities, and the reported revenues and expenses. The Company uses estimates and assumptions in accounting for significant matters, among others, the carrying value of property and equipment and related impairment testing, inventory valuation, and derivative instruments. Actual results could differ from those estimates and such differences may be material to the financial statements. The Company periodically reviews estimates and assumptions and the effects of revisions are reflected in the period in which the revision is made.
Revenue Recognition	Revenue Recognition
	The Company generally sells ethanol and related products pursuant to marketing agreements. The Company’s products are shipped FOB shipping point. Revenues are recognized when the customer has taken title and has assumed the risks and rewards of ownership, prices are fixed or determinable and collectability is reasonably assured. For ethanol sales, title transfers when loaded into the rail car and for distiller’s grains when the loaded rail cars leave the plant facility.
	In accordance with the Company’s agreements for the marketing and sale of ethanol and related products, marketing fees and freight due to the marketers are deducted from the gross sales price at the time incurred. Revenue is recorded net of these marketing fees and freight as they do not provide an identifiable benefit that is sufficiently separable from the sale of ethanol and related products.
Derivative Instruments	Derivative Instruments
	Derivatives are recognized in the balance sheet and the measurement of these instruments is at fair value. In order for a derivative to qualify as a hedge, specific criteria must be met and appropriate documentation maintained. Gains and losses from derivatives that do not qualify as hedges, or are undesignated, must be recognized immediately in earnings. If the derivative does qualify as a hedge, depending on the nature of the hedge, changes in the fair value of the derivative will be either offset against the change in fair value of the hedged assets, liabilities, or firm commitments through earnings or recognized in other comprehensive income until the hedged item is recognized in earnings. Changes in the fair value of undesignated derivatives are recognized currently in earnings.
	Contracts are evaluated to determine whether the contracts are derivatives. Certain contracts that literally meet the definition of a derivative may be exempted 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 accounting as derivatives, therefore, are not marked to market in our financial statements.
	The Company entered into corn commodity-based and natural gas derivatives in order to protect cash flows from fluctuations caused by volatility in prices. These derivatives are not designated as effective hedges for accounting purposes. For derivative instruments that are not accounted for as hedges, or for the ineffective portions of qualifying hedges, the change in fair value is recorded through earnings in the period of change. Corn and natural gas derivative changes in fair market value are included in costs of goods sold.
Fair Value of Financial Instruments	Fair Value of Financial Instruments
	The carrying value of cash and cash equivalents, accounts receivable, and accounts payable, and other working capital items approximate fair value at January 31, 2015 due to the short maturity nature of these instruments.
	The Company believes the carrying value of the derivative instruments approximates fair value based on quoted market prices or widely accepted valuation techniques including discounted cash flow analysis which includes observable market-based inputs.
	The Company believes the carrying amount of the long-term debt approximates the fair value due to a significant portion of total indebtedness containing variable interest rates and that this rate is a market interest rate for these borrowings.
Investments	Equity Method Investments
	The Company has an investment interest in an unlisted company, Renewable Products Marketing Group, LLC (RPMG), who markets the Company’s ethanol. This investment is a flow-through entity and is being accounted for by 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. Distributions or dividends received from the investment are treated as a reduction of the investment account. The Company has a 7% interest in RPMG. The Company consistently follows the practice of recognizing the net income based on the most recent reliable data. Therefore, the net income which is reported in the Company's income statement for the quarter ended January 31, 2015 is based on the investee’s results of operations for the three month period ended December 31, 2014.
	The Company is one of eight member owner-investors in Lawrenceville Tank, LLC. The Company has a 7% ownership in Lawrenceville Tank, LLC which owns and operates a trans load/tank facility in Atlanta, Georgia area. This provides another area of opportunity for the Company’s ethanol production to be marketed by RPMG.
Railcar Damages Accrual	Railcar Damages Accrual
	In accordance with the Company's railcar lease agreements, the Company is required to pay for damages considered to be in excess of normal wear and tear at the termination of the lease. The Company accrues the estimated cost for railcar damages over the term of the lease.

Fair_Value_Measurements_Tables

Fair Value Measurements (Tables)	3 Months Ended
	Jan. 31, 2015
Fair Value Measurements [Abstract]
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis	The following table provides information on those assets (liabilities) measured at fair value on a recurring basis.
		Fair Value as of			Fair Value Measurement Using
		January 31, 2015			Level 1			Level 2		Level 3
	Derivative instruments - commodities	$	(400,375	)	$	(400,375	)	$	—	$	—
		Fair Value as of			Fair Value Measurement Using
		31-Oct-14			Level 1			Level 2		Level 3
	Derivative instruments - commodities	$	(339,011	)	$	(339,011	)	$	—	$	—

Inventories_Tables

Inventories (Tables)	3 Months Ended
	Jan. 31, 2015
Inventories [Abstract]
Schedule of Inventory
		January 31, 2015		31-Oct-14
	Raw materials	$	1,923,313	$	1,653,015
	Spare parts and supplies	1,762,895		1,603,984
	Work in process	705,205		710,583
	Finished goods	667,327		327,609
	Total	$	5,058,740	$	4,295,191

Derivative_Instruments_Tables

Derivative Instruments (Tables)	3 Months Ended
	Jan. 31, 2015
Derivative Instruments [Abstract]
Schedule of Derivatives Instruments Statements of Financial Performance and Financial Position
	Instrument	Balance Sheet location		31-Jan-15			31-Oct-14
	Corn, natural gas and ethanol contracts
	In gain position			$	438		$	—
	In loss position			(400,813		)	(339,011		)
	Deposits with broker			605,838			596,945
		Current assets		$	205,463		$	257,934
Schedule of Other Derivatives Not Designated as Hedging Instruments, Statements of Financial Performance and Financial Position
			Statement of		Three Months Ended January 31,
			Operations location		2015			2014
	Interest rate swap		Other income (expense)		$	—		$	182,429
	Ethanol contracts		Revenues		(34,952		)	39,106
	Corn contracts		Cost of goods sold		171,302			390,483
	Natural gas contracts		Cost of goods sold		(41,783		)	(109,054		)

Debt_Financing_Tables

Debt Financing (Tables)	3 Months Ended
	Jan. 31, 2015
Debt Financing [Abstract]
Schedule of Long-term Debt
		January 31, 2015		31-Oct-14
	Variable Rate Term Loan (AgStar)	$	25,544,998	$	26,509,288
	Capital lease, see terms below	1,916,576		2,104,488
	Total	27,461,574		28,613,776
	Less amounts due within one year	4,306,422		4,298,766
	Net long-term debt	$	23,155,152	$	24,315,010
Schedule of Maturities of Long-term Debt
	2015	$	4,306,422
	2016	4,659,252
	2017	4,200,952
	2018	3,857,160
	2019	3,857,160
	2020 and thereafter	6,580,628
	Long-term debt	$	27,461,574

Summary_of_Significant_Account1

Summary of Significant Accounting Policies (Details) (Ethanol [Member])	3 Months Ended
	Jan. 31, 2015
	gal
Ethanol [Member]
Product Information [Line Items]
Annual Production Capacity	50,000,000

Summary_of_Significant_Account2

Summary of Significant Accounting Policies Investment (Details)	Jan. 31, 2015
Renewable Fuels Marketing Group (RPMG) [Member]
Schedule of Equity Method Investments [Line Items]
Equity Method Investment, Ownership Percentage	7.00%
Lawrenceville Tank, LLC [Member]
Schedule of Equity Method Investments [Line Items]
Equity Method Investment, Ownership Percentage	7.00%

Fair_Value_Measurements_Detail

Fair Value Measurements (Details) (Commodity [Member], Fair Value, Measurements, Recurring [Member], USD $)	Jan. 31, 2015	Oct. 31, 2014
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Assets	($400,375)	($339,011)
Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Assets	-400,375	-339,011
Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Assets	0	0
Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Assets	$0	$0

Inventories_Details

Inventories (Details) (USD $)	Jan. 31, 2015	Oct. 31, 2014
Inventories [Abstract]
Raw Materials	$1,923,313	$1,653,015
Spare parts and supplies	1,762,895	1,603,984
Work in Process	705,205	710,583
Finished Goods	667,327	327,609
Total	$5,058,740	$4,295,191

Derivative_Instruments_Balance

Derivative Instruments Balance Sheet (Details) (USD $)	Jan. 31, 2015	Oct. 31, 2014
Derivatives, Fair Value [Line Items]
Good Faith and Margin Deposits with Broker-Dealers	$605,838	$596,945
Derivative instruments	205,463	257,934
Corn [Member]
Derivatives, Fair Value [Line Items]
Derivative, Nonmonetary Notional Amount	800,000
Commodity [Member]
Derivatives, Fair Value [Line Items]
Derivative Asset, Current	438	0
Derivative Liability, Current	($400,813)	($339,011)

Derivative_Instruments_Income_

Derivative Instruments Income Statement (Details) (Not Designated as Hedging Instrument [Member], USD $)	3 Months Ended
	Jan. 31, 2015	Jan. 31, 2014
Interest Rate Swap [Member] | Other Income [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Derivative Instruments, Gain (Loss) Recognized in Income, Net	$0	$182,429
Ethanol [Member] | Sales [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Derivative Instruments, Gain (Loss) Recognized in Income, Net	-34,952	39,106
Corn [Member] | Cost of Sales [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Derivative Instruments, Gain (Loss) Recognized in Income, Net	171,302	390,483
Natural Gas [Member] | Cost of Sales [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Derivative Instruments, Gain (Loss) Recognized in Income, Net	($41,783)	($109,054)

Debt_Financing_Details

Debt Financing (Details) (USD $)	3 Months Ended	12 Months Ended
	Jan. 31, 2015	Oct. 31, 2014
Debt Instrument [Line Items]
Capital Lease Obligations	$1,916,576	$2,104,488
Long-term Debt and Capital Lease Obligations	27,461,574	28,613,776
Current maturities of long-term debt	4,306,422	4,298,766
Long-Term Debt	23,155,152	24,315,010
Debt Instrument, Restrictive Covenants		0.5
Ratio of Indebtedness to Net Capital	1.15
Expense Related to Distribution or Servicing and Underwriting Fees		10,000
Letters of Credit Outstanding, Amount	2,000,000
Capital Lease Obligations, Current	1,916,576
AgStar Financial Services, PCA [Member]
Debt Instrument [Line Items]
Minimum Net Worth Required for Compliance	42,000,000
Working Capital Requirement	8,250,000
Debt Instrument, Annual Capital Expenditure Limit		2,000,000
AgStar Financial Services, PCA [Member] | Letter of Credit [Member]
Debt Instrument [Line Items]
Line of Credit Facility, Interest Rate at Period End		1.50%
Debt Instrument, Basis Spread on Variable Rate	3.25%
AgStar Financial Services, PCA [Member] | Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity	5,000,000	5,000,000
Debt Instrument, Annual Capital Expenditure Limit	2,000,000
Debt Instrument, Basis Spread on Variable Rate	3.25%
Notes Payable to Banks [Member] | AgStar Financial Services, PCA [Member]
Debt Instrument [Line Items]
Long-term Debt	25,544,998
Debt Instrument, Face Amount		27,000,000
Debt Instrument, Periodic Payment, Principal		321,000
Debt Instrument, Basis Spread on Variable Rate	3.25%
Notes Payable to Banks [Member] | AgStar Financial Services, PCA [Member] | Term Loan [Member]
Debt Instrument [Line Items]
Long-term Debt	25,544,998	26,509,288
Notes Payable to Banks [Member] | AgStar Financial Services, PCA [Member] | Term Revolving Loan [Member]
Debt Instrument [Line Items]
Debt Instrument, Face Amount		5,000,000
Long-term Line of Credit, Noncurrent		$0

Debt_Financing_Short_Term_Debt

Debt Financing Short Term Debt (Details) (AgStar Financial Services, PCA [Member], USD $)	3 Months Ended
	Jan. 31, 2015	Oct. 31, 2014
Letter of Credit [Member]
Line of Credit Facility [Line Items]
Line of Credit Facility, Interest Rate at Period End		1.50%
Debt Instrument, Basis Spread on Variable Rate	3.25%
Revolving Credit Facility [Member]
Line of Credit Facility [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity	5,000,000	5,000,000
Debt Instrument, Basis Spread on Variable Rate	3.25%
Line of Credit, Current		0

Debt_Financing_Schedule_of_Mat

Debt Financing Schedule of Maturities of Long-Term Debt (Details) (USD $)	Jan. 31, 2015	Oct. 31, 2014
Debt Financing [Abstract]
Long-term Debt, Maturities, Repayments of Principal in Next Rolling Twelve Months	$4,306,422
Long-term Debt, Maturities, Repayments of Principal in Rolling Year Two	4,659,252
Long-term Debt, Maturities, Repayments of Principal in Rolling Year Three	4,200,952
Long-term Debt, Maturities, Repayments of Principal in Rolling Year Four	3,857,160
Long-term Debt, Maturities, Repayments of Principal in Rolling Year Five	3,857,160
Long-term Debt, Maturities, Repayments of Principal in Rolling after Year Five	6,580,628
Long-term Debt and Capital Lease Obligations	$27,461,574	$28,613,776

Commitments_and_Contingencies_

Commitments and Contingencies (Details)	Jan. 31, 2015	Oct. 31, 2014
	gal	T
Supply Commitment [Line Items]
Purchase Commitment, Remaining Minimum Amount Committed, Volume	1,220,600
Distillers Grain [Member]
Supply Commitment [Line Items]
Supply Commitment, Remaining Minimum Amount Committed, Mass		30,000
Natural Gas [Member]
Supply Commitment [Line Items]
Purchase Commitment forward fixed contracts, energy	1,064,300

Subsequent_Event_Details

Subsequent Event (Details) (AgStar Financial Services, PCA [Member], USD $)	12 Months Ended	3 Months Ended
	Oct. 31, 2014	Jan. 31, 2015
Subsequent Event [Line Items]
Debt Instrument, Annual Capital Expenditure Limit	$2,000,000
Revolving Credit Facility [Member]
Subsequent Event [Line Items]
Debt Instrument, Annual Capital Expenditure Limit		$2,000,000