Highwater Ethanol (HEOL) 10-Q 11 Mar 20 2020 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information Document - shares	3 Months Ended
	Jan. 31, 2020	Mar. 11, 2020
Document and Entity Information [Abstract]
Entity Registrant Name	HIGHWATER ETHANOL LLC
Entity Central Index Key	0001371451
Current Fiscal Year End Date	--10-31
Entity Filer Category	Non-accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Document Type	10-Q
Document Period End Date	Jan. 31, 2020
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q1
Amendment Flag	false
Entity Shell Company	false
Entity Current Reporting Status	Yes
Entity Common Stock, Shares Outstanding		4,807

Condensed Balance Sheets

Condensed Balance Sheets - USD ($)	Jan. 31, 2020	Oct. 31, 2019
Current Assets
Cash and cash equivalents	$ 1,509,175	$ 1,639,114
Derivative instruments	408,913	469,740
Accounts receivable	3,087,055	2,961,977
Inventories	7,961,514	7,367,356
Prepaids and other	203,130	166,243
Total current assets	13,169,787	12,604,430
Property and Equipment
Land and land improvements	12,836,332	12,836,332
Buildings	38,818,532	38,818,532
Office equipment	1,151,330	1,151,330
Plant and process equipment	78,061,869	78,050,785
Vehicles	123,779	123,779
Construction in progress	530,430	278,333
Gross property and equipment	131,522,272	131,259,091
Less accumulated depreciation	(75,039,232)	(72,784,587)
Net property and equipment	56,483,040	58,474,504
Other Assets
Investments	3,029,489	2,752,266
Right of use asset - operating leases	659,301
Right of use asset - finance leases	1,338,616
Deposits	409,283	191,457
Total other assets	5,436,689	2,943,723
Total Assets	75,089,516	74,022,657
Current Liabilities
Accounts payable	6,780,759	6,908,305
Accrued expenses	1,704,000	1,156,038
Current maturities of long-term debt	2,731,689	2,729,739
Current portion of operating lease liability	135,603
Current portion of finance lease liability	107,396
Total Current Liabilities	11,459,447	10,794,082
Long-Term Liabilities
Term Debt	8,499,000	7,244,124
Operating lease liability	523,698
Finance lease liability	1,239,603
Total Long-Term Liabilities	10,262,301	7,244,124
Commitments and Contingencies
Members' Equity
Members' equity, 4,807 units outstanding	53,367,768	55,984,451
Total Liabilities and Members’ Equity	$ 75,089,516	$ 74,022,657

Condensed Balance Sheets Parent

Condensed Balance Sheets Parenthetical - shares	Jan. 31, 2020	Oct. 31, 2019
Statement of Financial Position [Abstract]
Members' equity, units outstanding (in shares)	4,807	4,807

Condensed Unaudited Statements

Condensed Unaudited Statements of Operations - USD ($)	3 Months Ended
	Jan. 31, 2020	Jan. 31, 2019
Income Statement [Abstract]
Revenues	$ 27,184,024	$ 22,688,410
Cost of Goods Sold	28,659,348	24,487,297
Gross Loss	(1,475,324)	(1,798,887)
Operating Expenses	1,020,521	761,331
Operating Loss	(2,495,845)	(2,560,218)
Other Income (Expense)
Interest income	2,412	742
Other income	15,536	6,898
Interest expense	(161,243)	(202,594)
Income from equity method investments	22,457	35,460
Total other income (expense), net	(120,838)	(159,494)
Net Loss	$ (2,616,683)	$ (2,719,712)
Weighted Average Units Outstanding (in shares)	4,807	4,812
Net Loss Per Unit, Basic and Diluted (in dollars per share)	$ (544.35)	$ (565.19)
Distributions Per Unit (in dollars per share)	$ 0	$ 0

Statements of Changes in Member

Statements of Changes in Members' Equity (Unaudited)	USD ($)
Members' Equity, beginning balance at Oct. 31, 2018	$ 64,297,887
Members' Equity [Roll Forward]
Net Loss	(2,719,712)
Members' Equity, ending balance at Jan. 31, 2019	61,578,175
Members' Equity, beginning balance at Oct. 31, 2019	55,984,451
Members' Equity [Roll Forward]
Net Loss	(2,616,683)
Members' Equity, ending balance at Jan. 31, 2020	$ 53,367,768

Condensed Unaudited Statement_2

Condensed Unaudited Statements of Cash Flows - USD ($)	3 Months Ended
	Jan. 31, 2020	Jan. 31, 2019
Cash Flows from Operating Activities
Net Loss	$ (2,616,683)	$ (2,719,712)
Adjustments to reconcile net loss to net cash used in operating activities
Depreciation and amortization	2,295,794	2,217,751
Distributions in excess of earnings from equity method investments	121,589	270,018
Non-cash patronage income	(398,812)	(212,167)
Changes in assets and liabilities
Accounts receivable	(125,078)	(1,666,262)
Inventories	(594,158)	(922,746)
Derivative instruments	60,827	234,255
Prepaids and other	(254,713)	(19,432)
Accounts payable	(201,356)	443,993
Accrued expenses	547,962	(126,321)
Net cash used in operating activities	(1,164,628)	(2,500,623)
Cash Flows from Investing Activities
Capital expenditures	(189,369)	(453,021)
Net cash used in investing activities	(189,369)	(453,021)
Cash Flows from Financing Activities
Payments on long-term debt	(3,750,000)	(750,000)
Proceeds from long-term debt	5,000,000	4,000,000
Payment on finance lease liability	(25,942)	0
Net cash provided by financing activities	1,224,058	3,250,000
Net (Decrease) Increase in Cash and Cash Equivalents	(129,939)	296,356
Cash and Cash equivalents – Beginning of Period	1,639,114	430,702
Cash and Cash equivalents – End of Period	1,509,175	727,058
Supplemental Cash Flow Information
Cash paid for interest	123,030	171,079
Supplemental Disclosure of Noncash Financing and Investing Activities
Capital expenditures included in accounts payable	87,026	20,723
Establishment of lease liability and right of use asset	$ 2,064,994	$ 0

Summary of Significant Accounti

Summary of Significant Accounting Policies	3 Months Ended
	Jan. 31, 2020
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, 2019 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, 2019 , 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, 2020 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 nameplate per year ethanol plant in Lamberton, Minnesota. The Company produces and sells, primarily through third-party professional marketers, fuel ethanol and co-products of the fuel ethanol production process in the continental United States. 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 ASC Topic 606, Revenue from Contracts with Customers, further details the Company’s requirement to recognize revenue of transferred goods or services to customers in an amount which is expected to be received in exchange for those goods or services. Five steps were required as part of the new guidance: 1. Identify the contract 2. Identify the performance obligations 3. Determine the transaction price 4. Allocate the transaction price to the performance obligation 5. Recognize revenue when each performance obligation is satisfied. The adoption of this new guidance did not result in any material changes to our revenue recognition. The Company generally sells ethanol and related products pursuant to marketing agreements. The Company’s products are shipped FOB shipping point. The Company recognizes revenue when control of goods is transferred, which is consistent with the Company's previous policy where revenues were 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, control 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. 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. • ethanol sales • modified distillers grains sales • dried distillers grains sales • corn oil sales Disaggregation of revenue: All revenue recognized in the income statement is considered to be revenue from contracts with customers. The following table depicts the disaggregation of revenue according to product line for the three months ended January 31, 2020 and 2019 : Three Months Ended January 31, 2020 Three Months Ended January 31, 2019 Revenue Sources Amount (Unaudited) Amount (Unaudited) Ethanol Sales $ 21,355,975 $ 16,949,206 Modified Distillers Grains Sales 1,293,345 1,157,453 Dried Distillers Grains Sales 3,683,362 3,850,366 Corn Oil Sales 851,342 731,385 Total Revenues $ 27,184,024 $ 22,688,410 Contract assets and contract liabilities: The following table provides information about receivables and contract liabilities from contracts with customers: January 31, 2020 October 31, 2019 Accounts receivable $ 2,885,865 $ 2,643,352 Short term contract liabilities 106,829 36,615 The Company receives payments from customers based upon contractual billing schedules; accounts receivable are recorded when the right to consideration becomes unconditional. Contract liabilities include payments received in advance of performance under the contract, and are realized with the associated revenue recognized under the contract. Shipping Costs Shipping costs incurred by the Company in the sale of ethanol, dried distillers grains and corn oil are not specifically identifiable and as a result, revenue from the sale of those products is recorded based on the net selling price reported to the Company from the marketer. Operating Segment The Company uses the "management approach" for reporting information about segments in annual and interim financial statements. The management approach is based on the way the chief operating decision-maker organizes segments within a company for making operating decisions and assessing performance. Reportable segments are based on products and services, geography, legal structure, management structure and any other manner in which management disaggregates a company. Based on the "management approach" model, the Company has determined that its business is comprised of a single operating segment. Derivative Instruments Derivatives are recognized in the balance sheets and the measurement of these instruments are 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. Contracts are evaluated to determine whether the contracts are derivatives. Certain contracts that 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 enters 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 accounts receivable, accounts payable, and other working capital items approximate fair value at January 31, 2020 due to the short maturity nature of these instruments (Level 2). Commodities contracts are carried at fair value, based on dealer quotes and live trading levels (Note 5). The Company believes the carrying amount of the long-term debt approximates fair value due to a significant portion of total indebtedness containing variable interest rates and this rate is a market interest rate for these borrowings (Level 2). Investments The Company has a 5.55% investment interest in an unlisted company, Renewable Products Marketing Group, LLC (RPMG), who markets the Company’s ethanol. The Company also has a 7% ownership interest in Lawrenceville Tank, LLC (LT), which owns and operates a trans load/tank facility near Atlanta, Georgia. These investments are flow-through entities and are 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 statements of operations and added to the investment account. Distributions or dividends received from the investment are treated as a reduction of the investment account. The Company consistently follows the practice of recognizing the net income from equity method investments based on the most recent reliable data. Therefore, the net income which is reported in the Company's statement of operations for the period ended January 31, 2020 is based on the investee’s results of operations for the period ended December 31, 2019. Recently Issued or Adopted Accounting Pronouncements Accounting for Leases (Adopted): In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). This ASU requires lessees to recognize a lease liability and a right of use asset for all leases with a lease term greater than twelve months on its balance sheet. Leases are classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. The Company has elected the practical expedient to not record a right of use asset or lease liability for leases with a term of 12 months or less. See Note 7 for further information.

Uncertainties

Uncertainties	3 Months Ended
	Jan. 31, 2020
Risks and Uncertainties [Abstract]
Uncertainties	UNCERTAINTIES The Company derives substantially all of its revenues from the sale of ethanol, distillers grains and corn oil. 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.

Inventories

Inventories	3 Months Ended
	Jan. 31, 2020
Inventory Disclosure [Abstract]
Inventories	INVENTORIES Inventories consisted of the following at: January 31, 2020 October 31, 2019 Raw materials $ 3,201,958 $ 2,801,255 Spare parts and supplies 3,618,980 3,384,360 Work in process 739,539 743,850 Finished goods 401,037 437,891 Total $ 7,961,514 $ 7,367,356 The Company recorded a lower of cost or net realizable value write-down on corn inventory of approximately $465,000 , ethanol inventory of approximately $20,000 and dried distillers grains inventory of approximately $16,000 at January 31, 2020 .

Derivative Instruments

Derivative Instruments	3 Months Ended
	Jan. 31, 2020
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative Instruments	DERIVATIVE INSTRUMENTS As of January 31, 2020 , the Company had entered into corn and ethanol 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. 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 or a cash flow hedge. The derivative instruments outstanding at January 31, 2020 are not designated as effective hedges for accounting purposes. Commodity Contracts Management expects all open futures positions outstanding as of January 31, 2020 to be realized within the next twelve months. The following tables provide details regarding the Company's derivative instruments at January 31, 2020 and October 31, 2019 : Instrument Balance Sheet location January 31, 2020 October 31, 2019 Corn, natural gas and ethanol contracts In gain position $ 78,903 $ 124,069 In loss position (883,788 ) (775,887 ) Deposits with broker 1,213,798 1,121,558 Current assets $ 408,913 $ 469,740 The following tables 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 2020 2019 Ethanol contracts Revenues 61,271 $ (135,797 ) Corn contracts Cost of goods sold 38,355 675,365 Natural gas contracts Cost of goods sold 6,321 19,806

Fair Value Measurements

Fair Value Measurements	3 Months Ended
	Jan. 31, 2020
Fair Value Disclosures [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, 2020 Level 1 Level 2 Level 3 Derivative instruments - commodities In gain position $ 78,903 $ 76,025 $ 2,878 $ — In loss position (883,788 ) (99,130 ) (784,658 ) — Fair Value as of Fair Value Measurement Using October 31, 2019 Level 1 Level 2 Level 3 Derivative instruments - commodities In gain position $ 124,069 $ 4,538 $ 119,531 $ — In loss position (775,887 ) (4,375 ) (771,512 ) — 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.

Debt Financing

Debt Financing	3 Months Ended
	Jan. 31, 2020
Debt Disclosure [Abstract]
Debt Financing	DEBT FINANCING Long-term debt consists of the following at: January 31, 2020 October 31, 2019 Variable Rate Term Loan $ 2,750,000 $ 3,500,000 Term Revolving Loan 8,499,000 6,499,000 Total 11,249,000 9,999,000 Less Debt Issuance Costs (18,311 ) (25,137 ) Less amounts due within one year (2,731,689 ) (2,729,739 ) Net long-term debt $ 8,499,000 $ 7,244,124 Bank Financing On January 22, 2016, the Company entered into a Second Amended and Restated Credit Agreement with Compeer Financial PCA f/k/a AgStar Financial Services, PCA, as administrative agent for several financial institutions ("Compeer") which amended the Amended and Restated Credit Agreement dated September 22, 2014. The Second Amended and Restated Credit Agreement decreased the Term Loan to $15,000,000 , increased the Term Revolving Loan to $15,000,000 and eliminated the Revolving Line of Credit. Effective April 20, 2018, the Company executed a First Amendment to the Second Amended and Restated Credit Agreement with Compeer Financial which increased the availability under the Term Revolving Loan to $20,000,000 . In connection therewith, as of the same date, the Company executed a Third Amended and Restated Term Revolving Note and a Third Amended and Restated Mortgage, Security Agreement, Assignment of Leases and Fixture Financing Statement. On December 17, 2019, Compeer waived the Company's violation at October 31, 2019 of the minimum debt service coverage ratio set forth in the Second Amended and Restated Credit Agreement. Term Loan The Term Loan had an original balance of $15,000,000 with a variable interest rate based on the 30-day LIBOR rate plus 325 basis points with no minimum interest rate. The applicable interest rate at January 31, 2020 was 4.97% . Monthly principal payments are due on the Term Loan of approximately $250,000 plus accrued interest. Payments of all amounts outstanding are due on January 22, 2021. The outstanding balance on this note was $2,750,000 at January 31, 2020 . The Company may convert the Term Loan to a fixed rate loan, subject to certain conditions as described in the Second Amended and Restated Credit Agreement and with the consent of Compeer. Term Revolving Loan The Term Revolving Loan is for $20,000,000 with a variable interest rate based on the 30-day LIBOR rate plus 325 basis points with no minimum interest rate. The applicable interest rate at January 31, 2020 was 4.97% . 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 are due on January 22, 2023. The outstanding balance on this note was $8,499,000 at January 31, 2020 . The Company pays interest at a rate of 1.50% on amounts outstanding for letters of credit which also reduce the amount available under the Term Revolving Loan. The Company has no letters of credit outstanding at January 31, 2020 . The Company is also required to pay unused commitment fees for the Term Revolving Loan as defined in the Second Amended and Restated Credit Agreement. Covenants and other Miscellaneous Terms The loan facility with Compeer 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 debt service coverage ratio is no less than 1.25 :1.00 measured annually by comparing adjusted EBITDA to scheduled payments of principal and interest. The minimum working capital is $8,250,000 , which is calculated as current assets plus the amount available for drawing under the 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 $5,000,000 without prior approval, incurring additional debt over certain amounts without prior approval, and making additional investments as described in the Second Amended and Restated Credit Agreement without prior approval of Compeer. The Company is allowed to make cash distributions to members as frequently as monthly in an amount equal to 75% of net income if working capital is greater than or equal to $8,250,000 , or 100% of net income if working capital is greater than or equal to $11,000,000 , or an unlimited amount if working capital is greater than or equal to $11,000,000 and the outstanding balance on the Term Loan is $0 . The estimated maturities of the long-term debt at January 31, 2020 are as follows: Principal Debt Issuance Costs Total January 2021 2,750,000 (18,311 ) 2,731,689 January 2022 — — — January 2023 8,499,000 — 8,499,000 Long-term debt $ 11,249,000 $ (18,311 ) $ 11,230,689

Leases (Notes)

Leases (Notes)	3 Months Ended
	Jan. 31, 2020
Leases [Abstract]
Lesses	LEASES Adoption of ASC 842 As discussed in Note 1, on November 1, 2019, the Company adopted the provisions of ASC 842 using the modified retrospective approach and elected the option to apply the transition provisions at adoption date instead of the earliest period presented in the financial statements. Due to this election, the Company is not required to retrospectively apply the standard to previous periods presented. This adoption resulted in the Company recognizing initial right of use assets and lease liabilities of approximately $692,000 and $1,373,000 , operating leases and finance leases, respectively. The adoption did not have a significant impact on the Company’s statement of operations. The Company leases rail cars for its facility to transport dried distillers grains to its end customers. We classified these identified assets as operating leases after assessing the terms under lease classification guidance. The Company has a contract for use of a natural gas pipeline which transports natural gas from the Northern Natural Gas pipeline to the Company’s facility. This natural gas line has no alternate use and is specifically for the benefit of the Company. The contract has minimum volume requirements as well as a fixed monthly fee. This contract meets the definition of a lease and is classified as a finance lease. Right of use assets and lease liabilities are recognized at commencement date based on the present value of lease payments over the lease term. The discount rate used in determining the lease liability for each individual lease is the Company's estimated incremental borrowing rate. An incremental borrowing rate of 5.50% was utilized for each of the Company's leases. The Company determines if an arrangement is a lease or contains a lease at inception. The Company’s operating and finance leases have remaining lease terms of approximately 5 years and 10 years , respectively. These leases include options to extend the lease when it is reasonably certain the Company will exercise those options. The Company does not have lease arrangements with residual value guarantees, sale leaseback terms or material restrictive covenants. The following table summarizes the remaining maturities of the Company’s operating and finance lease liabilities as of January 31, 2020: Operating Lease For the Period Ending January 31, Operating Leases Finance Leases 2021 $ 168,480 $ 178,800 2022 168,480 178,800 2023 168,480 178,800 2024 168,480 178,800 2025 70,200 178,800 Thereafter — 849,300 Totals 744,120 1,743,300 Amount representing interest (84,819 ) (396,301 ) Operating lease liability $ 659,301 $ 1,346,999 Lease Cost Three Months ended January 31, 2020 Operating lease cost $ 42,120 Finance lease cost Amortization of leased assets 34,323 Interest on lease liabilities 18,759 Net lease cost $ 95,202
Lesses	LEASES Adoption of ASC 842 As discussed in Note 1, on November 1, 2019, the Company adopted the provisions of ASC 842 using the modified retrospective approach and elected the option to apply the transition provisions at adoption date instead of the earliest period presented in the financial statements. Due to this election, the Company is not required to retrospectively apply the standard to previous periods presented. This adoption resulted in the Company recognizing initial right of use assets and lease liabilities of approximately $692,000 and $1,373,000 , operating leases and finance leases, respectively. The adoption did not have a significant impact on the Company’s statement of operations. The Company leases rail cars for its facility to transport dried distillers grains to its end customers. We classified these identified assets as operating leases after assessing the terms under lease classification guidance. The Company has a contract for use of a natural gas pipeline which transports natural gas from the Northern Natural Gas pipeline to the Company’s facility. This natural gas line has no alternate use and is specifically for the benefit of the Company. The contract has minimum volume requirements as well as a fixed monthly fee. This contract meets the definition of a lease and is classified as a finance lease. Right of use assets and lease liabilities are recognized at commencement date based on the present value of lease payments over the lease term. The discount rate used in determining the lease liability for each individual lease is the Company's estimated incremental borrowing rate. An incremental borrowing rate of 5.50% was utilized for each of the Company's leases. The Company determines if an arrangement is a lease or contains a lease at inception. The Company’s operating and finance leases have remaining lease terms of approximately 5 years and 10 years , respectively. These leases include options to extend the lease when it is reasonably certain the Company will exercise those options. The Company does not have lease arrangements with residual value guarantees, sale leaseback terms or material restrictive covenants. The following table summarizes the remaining maturities of the Company’s operating and finance lease liabilities as of January 31, 2020: Operating Lease For the Period Ending January 31, Operating Leases Finance Leases 2021 $ 168,480 $ 178,800 2022 168,480 178,800 2023 168,480 178,800 2024 168,480 178,800 2025 70,200 178,800 Thereafter — 849,300 Totals 744,120 1,743,300 Amount representing interest (84,819 ) (396,301 ) Operating lease liability $ 659,301 $ 1,346,999

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Jan. 31, 2020
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	COMMITMENTS AND CONTINGENCIES Marketing Agreements The Company has an ethanol marketing agreement with a marketer (RPMG) to purchase, market, and distribute all the ethanol produced by the Company. The Company also entered into a member control agreement with the marketer whereby the Company made capital contributions and became a minority owner of the marketer. The member control agreement became effective on February 1, 2011 and provides the Company a membership interest with voting rights. The marketing agreement will terminate if the Company ceases to be a member. The Company will assume certain of the member’s rail car leases if the agreement is terminated. The Company can sell its ethanol either through an index arrangement or at an agreed upon fixed price. The marketing agreement is perpetual until terminated according to the agreement. The Company may be obligated to continue to market its ethanol through the marketer for a period of time. The amended agreement requires minimum capital amounts invested as required under the agreement. The Company has a distillers grains marketing agreement with a marketer to market all the dried distillers grains produced at the plant. Under the agreement the marketer charges a maximum of $2.00 per ton and a minimum of $1.50 per ton using 2% of the FOB plant price actually received by them for all dried distillers grains removed. The agreement will remain in effect unless otherwise terminated by either party with 120 days notice. Under the agreement, the marketer is responsible for all transportation arrangements for the distribution of the dried distillers grains. The Company markets and sells its modified and wet distillers grains. The Company has a corn oil marketing agreement with a marketer (RPMG) which became effective November 15, 2018. The agreement provides for an exclusive marketing arrangement with RPMG for the purposes of marketing and distributing our corn oil in exchange for payment of a marketing fee to RPMG. We may immediately terminate the agreement upon written notice to RPMG if: (1) RPMG fails on three separate occasions within a 12-month period to purchase corn oil or market corn oil, as not otherwise excused under the Agreement; or (2) upon RPMG's insolvency. RPMG may immediately terminate the agreement upon written notice if: (A) during any consecutive three (3) months the actual production or inventory of any corn oil product at the plant varies by twenty ( 20% ) or more from the monthly production and inventory estimates provided to RPMG (other than for reasons permitted under the RPMG Agreement); or (B) upon our insolvency. 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 In the ordinary course of business, we enter into forward contracts for our commodity purchases and sales. The Company recorded a lower of cost or net realizable value write-down on the forward fixed price contracts of approximately $626,000 at January 31, 2020 . Forward contracts are as follows at January 31, 2020 : Quantity Average Price Delivery Date Purchase of corn (in bushels): Basis Contracts 1,906,457 By 7/31/21 Priced Contracts 1,469,085 $ 3.87 By 1/31/21 Total 3,375,542 Purchase of natural gas (in dekatherms): Index contracts — Priced contracts 3,170,350 $ 2.41 By 3/31/23 Total 3,170,350 Purchase of denaturant (in gallons): Index contracts — Priced contracts 1,242,000 $ 1.26 By 12/31/20 Total 1,242,000 Sales of dry distillers grains (in tons): Index contracts — Priced contracts 3,100 $ 140.48 By 2/29/20 Total 3,100 Sales of modified distillers grains (in tons) Index contracts — Priced contracts 18,700 $ 72.27 By 8/31/20 Total 18,700 Sales of corn oil (in pounds) Index contracts — Priced contracts 1,398,000 $ 0.24 By 9/30/20 Total 1,398,000

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Jan. 31, 2020
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 ASC Topic 606, Revenue from Contracts with Customers, further details the Company’s requirement to recognize revenue of transferred goods or services to customers in an amount which is expected to be received in exchange for those goods or services. Five steps were required as part of the new guidance: 1. Identify the contract 2. Identify the performance obligations 3. Determine the transaction price 4. Allocate the transaction price to the performance obligation 5. Recognize revenue when each performance obligation is satisfied. The adoption of this new guidance did not result in any material changes to our revenue recognition. The Company generally sells ethanol and related products pursuant to marketing agreements. The Company’s products are shipped FOB shipping point. The Company recognizes revenue when control of goods is transferred, which is consistent with the Company's previous policy where revenues were 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, control 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. 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. • ethanol sales • modified distillers grains sales • dried distillers grains sales • corn oil sales Disaggregation of revenue: All revenue recognized in the income statement is considered to be revenue from contracts with customers. The following table depicts the disaggregation of revenue according to product line for the three months ended January 31, 2020 and 2019 : Three Months Ended January 31, 2020 Three Months Ended January 31, 2019 Revenue Sources Amount (Unaudited) Amount (Unaudited) Ethanol Sales $ 21,355,975 $ 16,949,206 Modified Distillers Grains Sales 1,293,345 1,157,453 Dried Distillers Grains Sales 3,683,362 3,850,366 Corn Oil Sales 851,342 731,385 Total Revenues $ 27,184,024 $ 22,688,410 Contract assets and contract liabilities: The following table provides information about receivables and contract liabilities from contracts with customers: January 31, 2020 October 31, 2019 Accounts receivable $ 2,885,865 $ 2,643,352 Short term contract liabilities 106,829 36,615 The Company receives payments from customers based upon contractual billing schedules; accounts receivable are recorded when the right to consideration becomes unconditional. Contract liabilities include payments received in advance of performance under the contract, and are realized with the associated revenue recognized under the contract. Shipping Costs Shipping costs incurred by the Company in the sale of ethanol, dried distillers grains and corn oil are not specifically identifiable and as a result, revenue from the sale of those products is recorded based on the net selling price reported to the Company from the marketer.
Operating Segment	Operating Segment The Company uses the "management approach" for reporting information about segments in annual and interim financial statements. The management approach is based on the way the chief operating decision-maker organizes segments within a company for making operating decisions and assessing performance. Reportable segments are based on products and services, geography, legal structure, management structure and any other manner in which management disaggregates a company. Based on the "management approach" model, the Company has determined that its business is comprised of a single operating segment.
Derivative Instruments	Derivative Instruments Derivatives are recognized in the balance sheets and the measurement of these instruments are 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. Contracts are evaluated to determine whether the contracts are derivatives. Certain contracts that 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 enters 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 accounts receivable, accounts payable, and other working capital items approximate fair value at January 31, 2020 due to the short maturity nature of these instruments (Level 2). Commodities contracts are carried at fair value, based on dealer quotes and live trading levels (Note 5). The Company believes the carrying amount of the long-term debt approximates fair value due to a significant portion of total indebtedness containing variable interest rates and this rate is a market interest rate for these borrowings (Level 2).
Investments	Investments The Company has a 5.55% investment interest in an unlisted company, Renewable Products Marketing Group, LLC (RPMG), who markets the Company’s ethanol. The Company also has a 7% ownership interest in Lawrenceville Tank, LLC (LT), which owns and operates a trans load/tank facility near Atlanta, Georgia. These investments are flow-through entities and are 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 statements of operations and added to the investment account. Distributions or dividends received from the investment are treated as a reduction of the investment account. The Company consistently follows the practice of recognizing the net income from equity method investments based on the most recent reliable data. Therefore, the net income which is reported in the Company's statement of operations for the period ended January 31, 2020 is based on the investee’s results of operations for the period ended December 31, 2019.
Recently Issued or Adopted Accounting Pronouncements	Recently Issued or Adopted Accounting Pronouncements Accounting for Leases (Adopted): In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). This ASU requires lessees to recognize a lease liability and a right of use asset for all leases with a lease term greater than twelve months on its balance sheet. Leases are classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. The Company has elected the practical expedient to not record a right of use asset or lease liability for leases with a term of 12 months or less. See Note 7 for further information.

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Tables)	3 Months Ended
	Jan. 31, 2020
Accounting Policies [Abstract]
Disaggregation of Revenue	The following table depicts the disaggregation of revenue according to product line for the three months ended January 31, 2020 and 2019 : Three Months Ended January 31, 2020 Three Months Ended January 31, 2019 Revenue Sources Amount (Unaudited) Amount (Unaudited) Ethanol Sales $ 21,355,975 $ 16,949,206 Modified Distillers Grains Sales 1,293,345 1,157,453 Dried Distillers Grains Sales 3,683,362 3,850,366 Corn Oil Sales 851,342 731,385 Total Revenues $ 27,184,024 $ 22,688,410
Summary of Contract Assets and Liabilities	The following table provides information about receivables and contract liabilities from contracts with customers: January 31, 2020 October 31, 2019 Accounts receivable $ 2,885,865 $ 2,643,352 Short term contract liabilities 106,829 36,615

Inventories (Tables)

Inventories (Tables)	3 Months Ended
	Jan. 31, 2020
Inventory Disclosure [Abstract]
Schedule of Inventory	Inventories consisted of the following at: January 31, 2020 October 31, 2019 Raw materials $ 3,201,958 $ 2,801,255 Spare parts and supplies 3,618,980 3,384,360 Work in process 739,539 743,850 Finished goods 401,037 437,891 Total $ 7,961,514 $ 7,367,356

Derivative Instruments (Tables)

Derivative Instruments (Tables)	3 Months Ended
	Jan. 31, 2020
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Schedule of Derivatives Instruments	The following tables provide details regarding the Company's derivative instruments at January 31, 2020 and October 31, 2019 : Instrument Balance Sheet location January 31, 2020 October 31, 2019 Corn, natural gas and ethanol contracts In gain position $ 78,903 $ 124,069 In loss position (883,788 ) (775,887 ) Deposits with broker 1,213,798 1,121,558 Current assets $ 408,913 $ 469,740
Schedule of Gains (Losses) From Derivative Instruments	The following tables 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 2020 2019 Ethanol contracts Revenues 61,271 $ (135,797 ) Corn contracts Cost of goods sold 38,355 675,365 Natural gas contracts Cost of goods sold 6,321 19,806

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	3 Months Ended
	Jan. 31, 2020
Fair Value Disclosures [Abstract]
Schedule of Assets and Liabilities Measured at Fair Value	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, 2020 Level 1 Level 2 Level 3 Derivative instruments - commodities In gain position $ 78,903 $ 76,025 $ 2,878 $ — In loss position (883,788 ) (99,130 ) (784,658 ) — Fair Value as of Fair Value Measurement Using October 31, 2019 Level 1 Level 2 Level 3 Derivative instruments - commodities In gain position $ 124,069 $ 4,538 $ 119,531 $ — In loss position (775,887 ) (4,375 ) (771,512 ) —

Debt Financing (Tables)

Debt Financing (Tables)	3 Months Ended
	Jan. 31, 2020
Debt Disclosure [Abstract]
Schedule of Long-term Debt	Long-term debt consists of the following at: January 31, 2020 October 31, 2019 Variable Rate Term Loan $ 2,750,000 $ 3,500,000 Term Revolving Loan 8,499,000 6,499,000 Total 11,249,000 9,999,000 Less Debt Issuance Costs (18,311 ) (25,137 ) Less amounts due within one year (2,731,689 ) (2,729,739 ) Net long-term debt $ 8,499,000 $ 7,244,124
Schedule of Maturities of Long-term Debt	The estimated maturities of the long-term debt at January 31, 2020 are as follows: Principal Debt Issuance Costs Total January 2021 2,750,000 (18,311 ) 2,731,689 January 2022 — — — January 2023 8,499,000 — 8,499,000 Long-term debt $ 11,249,000 $ (18,311 ) $ 11,230,689

Leases (Tables)

Leases (Tables)	3 Months Ended
	Jan. 31, 2020
Leases [Abstract]
Maturities of Operating Lease Liabilities	The following table summarizes the remaining maturities of the Company’s operating and finance lease liabilities as of January 31, 2020: Operating Lease For the Period Ending January 31, Operating Leases Finance Leases 2021 $ 168,480 $ 178,800 2022 168,480 178,800 2023 168,480 178,800 2024 168,480 178,800 2025 70,200 178,800 Thereafter — 849,300 Totals 744,120 1,743,300 Amount representing interest (84,819 ) (396,301 ) Operating lease liability $ 659,301 $ 1,346,999
Maturities of Financing Lease Liabilities	The following table summarizes the remaining maturities of the Company’s operating and finance lease liabilities as of January 31, 2020: Operating Lease For the Period Ending January 31, Operating Leases Finance Leases 2021 $ 168,480 $ 178,800 2022 168,480 178,800 2023 168,480 178,800 2024 168,480 178,800 2025 70,200 178,800 Thereafter — 849,300 Totals 744,120 1,743,300 Amount representing interest (84,819 ) (396,301 ) Operating lease liability $ 659,301 $ 1,346,999
Lease Cost	Lease Cost Three Months ended January 31, 2020 Operating lease cost $ 42,120 Finance lease cost Amortization of leased assets 34,323 Interest on lease liabilities 18,759 Net lease cost $ 95,202

Commitments and Contingencies (

Commitments and Contingencies (Table)	3 Months Ended
	Jan. 31, 2020
Commitments and Contingencies Disclosure [Abstract]
Schedule of Forward Contracts	The Company recorded a lower of cost or net realizable value write-down on the forward fixed price contracts of approximately $626,000 at January 31, 2020 . Forward contracts are as follows at January 31, 2020 : Quantity Average Price Delivery Date Purchase of corn (in bushels): Basis Contracts 1,906,457 By 7/31/21 Priced Contracts 1,469,085 $ 3.87 By 1/31/21 Total 3,375,542 Purchase of natural gas (in dekatherms): Index contracts — Priced contracts 3,170,350 $ 2.41 By 3/31/23 Total 3,170,350 Purchase of denaturant (in gallons): Index contracts — Priced contracts 1,242,000 $ 1.26 By 12/31/20 Total 1,242,000 Sales of dry distillers grains (in tons): Index contracts — Priced contracts 3,100 $ 140.48 By 2/29/20 Total 3,100 Sales of modified distillers grains (in tons) Index contracts — Priced contracts 18,700 $ 72.27 By 8/31/20 Total 18,700 Sales of corn oil (in pounds) Index contracts — Priced contracts 1,398,000 $ 0.24 By 9/30/20 Total 1,398,000

Summary of Significant Accoun_4

Summary of Significant Accounting Policies - Narrative (Details) gal in Millions	3 Months Ended
	Jan. 31, 2020segmentgal
Product Information [Line Items]
Number of operating segments | segment	1
Ethanol
Product Information [Line Items]
Annual production capacity (in gallons) | gal	50
Renewable Fuels Marketing Group (RPMG)
Product Information [Line Items]
Ownership percentage	5.55%
Lawrenceville Tank, LLC
Product Information [Line Items]
Ownership percentage	7.00%

Summary of Significant Accoun_5

Summary of Significant Accounting Policies - Disaggregation of Revenue (Details) - USD ($)	3 Months Ended
	Jan. 31, 2020	Jan. 31, 2019
Disaggregation of Revenue [Line Items]
Revenues	$ 27,184,024	$ 22,688,410
Ethanol Sales
Disaggregation of Revenue [Line Items]
Revenues	21,355,975	16,949,206
Modified Distillers Grains Sales
Disaggregation of Revenue [Line Items]
Revenues	1,293,345	1,157,453
Dried Distillers Grains Sales
Disaggregation of Revenue [Line Items]
Revenues	3,683,362	3,850,366
Corn Oil Sales
Disaggregation of Revenue [Line Items]
Revenues	$ 851,342	$ 731,385

Summary of Significant Accoun_6

Summary of Significant Accounting Policies - Summary of Contract Assets and Liabilities (Details) - USD ($)	Jan. 31, 2020	Oct. 31, 2019
Accounting Policies [Abstract]
Accounts receivable	$ 2,885,865	$ 2,643,352
Short term contract liabilities	$ 106,829	$ 36,615

Inventories - Schedule of Inven

Inventories - Schedule of Inventory (Details) - USD ($)	Jan. 31, 2020	Oct. 31, 2019
Inventory Disclosure [Abstract]
Raw materials	$ 3,201,958	$ 2,801,255
Spare parts and supplies	3,618,980	3,384,360
Work in process	739,539	743,850
Finished goods	401,037	437,891
Total	$ 7,961,514	$ 7,367,356

Inventories - Narrative (Detail

Inventories - Narrative (Details) $ in Thousands	3 Months Ended
	Jan. 31, 2020USD ($)
Corn contracts
Inventory [Line Items]
Inventory write-down	$ 465
Ethanol
Inventory [Line Items]
Inventory write-down	20
Distillers Grains
Inventory [Line Items]
Inventory write-down	$ 16

Derivative Instruments - Schedu

Derivative Instruments - Schedule of Derivatives Instruments (Details) - USD ($)	Jan. 31, 2020	Oct. 31, 2019
Derivatives, Fair Value [Line Items]
Derivative asset, fair value	$ 408,913	$ 469,740
Not designated as hedging instrument | Commodity Contract
Derivatives, Fair Value [Line Items]
In gain position	78,903	124,069
In loss position	(883,788)	(775,887)
Deposits with broker	$ 1,213,798	$ 1,121,558

Derivative Instruments - Sche_2

Derivative Instruments - Schedule of Gains (Losses) From Derivative Instruments (Details) - Not designated as hedging instrument - USD ($)	3 Months Ended
	Jan. 31, 2020	Jan. 31, 2019
Ethanol contracts | Revenues
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) on derivative	$ 61,271	$ (135,797)
Corn contracts | Cost of goods sold
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) on derivative	38,355	675,365
Natural gas contracts | Cost of goods sold
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) on derivative	$ 6,321	$ 19,806

Fair Value Measurements (Detail

Fair Value Measurements (Details) - Commodity Contract - Fair Value, measurements, recurring - USD ($)	Jan. 31, 2020	Oct. 31, 2019
Derivative instruments - commodities
In gain position	$ 78,903	$ 124,069
In loss position	(883,788)	(775,887)
Level 1
Derivative instruments - commodities
In gain position	76,025	4,538
In loss position	(99,130)	(4,375)
Level 2
Derivative instruments - commodities
In gain position	2,878	119,531
In loss position	(784,658)	(771,512)
Level 3
Derivative instruments - commodities
In gain position	0	0
In loss position	$ 0	$ 0

Debt Financing - Schedule of Lo

Debt Financing - Schedule of Long-term Debt (Details) - USD ($)	Jan. 31, 2020	Oct. 31, 2019
Debt Instrument [Line Items]
Long-term debt, gross	$ 11,249,000	$ 9,999,000
Less Debt Issuance Costs	(18,311)	(25,137)
Less amounts due within one year	(2,731,689)	(2,729,739)
Net long-term debt	8,499,000	7,244,124
AgStar Financial Services, PCA | Notes payable to banks | Variable Rate Term Loan
Debt Instrument [Line Items]
Long-term debt, gross	2,750,000	3,500,000
AgStar Financial Services, PCA | Notes payable to banks | Term Revolving Loan
Debt Instrument [Line Items]
Long-term debt, gross	$ 8,499,000	$ 6,499,000

Debt Financing - Narrative (Det

Debt Financing - Narrative (Details)	3 Months Ended
	Jan. 31, 2020USD ($)	Apr. 20, 2018USD ($)	Jan. 22, 2016USD ($)
Debt Instrument [Line Items]
Outstanding balance	$ 11,230,689
Debt covenant, minimum debt service coverage ratio	1.25
AgStar Financial Services, PCA | Revolving Credit Facility
Debt Instrument [Line Items]
Basis spread on variable rate (as a percent)	3.25%
AgStar Financial Services, PCA | Letter of Credit
Debt Instrument [Line Items]
Letter of credit, interest rate at period end	1.50%
Letters of credit outstanding balance	$ 0
Notes payable to banks | AgStar Financial Services, PCA
Debt Instrument [Line Items]
Basis spread on variable rate (as a percent)	3.25%
Notes payable to banks | AgStar Financial Services, PCA | Term Loan
Debt Instrument [Line Items]
Debt instrument, face amount			$ 15,000,000
Effective interest rate	4.97%
Periodic principal payment	$ 250,000
Outstanding balance	2,750,000
Notes payable to banks | AgStar Financial Services, PCA | Revolving Credit Facility
Debt Instrument [Line Items]
Maximum borrowing capacity			$ 15,000,000
Capacity available for trade purchases	20,000,000	$ 20,000,000
Working capital requirement	8,250,000
Annual capital expenditure limit	5,000,000
Notes payable to banks | AgStar Financial Services, PCA | Term Revolving Loan
Debt Instrument [Line Items]
Line of credit outstanding balance	$ 8,499,000
Term Revolving Loan | AgStar Financial Services, PCA
Debt Instrument [Line Items]
Effective interest rate	4.97%
75 percent of net income | Notes payable to banks | AgStar Financial Services, PCA | Revolving Credit Facility
Debt Instrument [Line Items]
Working capital requirement	$ 8,250,000
Restrictive covenants (as a percent)	75.00%
100 percent of net income | Notes payable to banks | AgStar Financial Services, PCA | Revolving Credit Facility
Debt Instrument [Line Items]
Working capital requirement	$ 11,000,000
Restrictive covenants (as a percent)	100.00%
100 percent of net income | Notes payable to banks | AgStar Financial Services, PCA | Term Revolving Loan
Debt Instrument [Line Items]
Line of credit, outstanding balance	$ 0
Unlimited | Notes payable to banks | AgStar Financial Services, PCA | Revolving Credit Facility
Debt Instrument [Line Items]
Working capital requirement	$ 11,000,000

Debt Financing - Schedule of Ma

Debt Financing - Schedule of Maturities of Long-term Debt (Details) - USD ($)	Jan. 31, 2020	Oct. 31, 2019
Principal
January 2021	$ 2,750,000
January 2022	0
January 2023	8,499,000
Long-term debt, principal	11,249,000	$ 9,999,000
Debt Issuance Costs
January 2021	(18,311)
January 2022	0
January 2023	0
Long-term debt, debt issuance costs	(18,311)	$ (25,137)
Total
January 2021	2,731,689
January 2022	0
January 2023	8,499,000
Long-term debt, total	$ 11,230,689

Leases - Narrative (Details)

Leases - Narrative (Details) - USD ($)	Jan. 31, 2020	Nov. 01, 2019
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Right of use asset - operating leases	$ 659,301
Operating lease liability	$ 659,301
Operating lease discount rate	5.50%
Operating leases remaining lease terms	5 years
Finance leases remaining lease terms	10 years
Accounting Standards Update 2016-02
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Right of use asset - operating leases		$ 692,000
Operating lease liability		$ 1,373,000

Leases - Maturities of Operatin

Leases - Maturities of Operating and Financing Lease Liabilities (Details)	Jan. 31, 2020USD ($)
Operating Leases
2021	$ 168,480
2022	168,480
2023	168,480
2024	168,480
2025	70,200
Thereafter	0
Totals	744,120
Amount representing interest	(84,819)
Operating lease liability	659,301
Finance Leases
2021	178,800
2022	178,800
2023	178,800
2024	178,800
2025	178,800
Thereafter	849,300
Totals	1,743,300
Amount representing interest	(396,301)
Finance lease liability	$ 1,346,999

Leases - Lease Cost (Details)

Leases - Lease Cost (Details)	3 Months Ended
	Jan. 31, 2020USD ($)
Leases [Abstract]
Operating lease cost	$ 42,120
Amortization of leased assets	34,323
Interest on lease liabilities	18,759
Net lease cost	$ 95,202

Commitments and Contingencies -

Commitments and Contingencies - Marketing Agreements (Details)	3 Months Ended
	Jan. 31, 2020USD ($)failure
Related Party Transaction [Line Items]
Related party contract termination notice	120 days
Affiliated Entity
Related Party Transaction [Line Items]
Related party transaction, fees, percentage of total	2.00%
Number of corn oil purchase failures | failure	3
Affiliated Entity | Maximum
Related Party Transaction [Line Items]
Related party transaction, marketing expense (in dollars per ton)	$ 2
Percentage of variation	20.00%
Affiliated Entity | Minimum
Related Party Transaction [Line Items]
Related party transaction, marketing expense (in dollars per ton)	$ 1.50

Commitments and Contingencies_2

Commitments and Contingencies - Forward Contracts (Details) lb in Thousands, gal in Thousands, $ in Thousands	3 Months Ended
	Jan. 31, 2020USD ($)bugalTlbMMBTU$ / bu$ / T$ / gal$ / lb$ / MMBTU
Supply Commitment [Line Items]
Write-down on contracts | $	$ 626
Distillers Grains
Supply Commitment [Line Items]
Derivative, nonmonetary notional amount	3,100
Modified Distillers Grains
Supply Commitment [Line Items]
Derivative, nonmonetary notional amount	18,700
Corn Oil
Supply Commitment [Line Items]
Derivative, nonmonetary notional amount | lb	1,398
Corn contracts
Supply Commitment [Line Items]
Derivative, nonmonetary notional amount | bu	3,375,542
Natural gas
Supply Commitment [Line Items]
Derivative, nonmonetary notional amount | MMBTU	3,170,350
Denaturant
Supply Commitment [Line Items]
Derivative, nonmonetary notional amount | gal	1,242
Basis Contracts | Corn contracts
Supply Commitment [Line Items]
Derivative, nonmonetary notional amount | bu	1,906,457
Index Contracts | Distillers Grains
Supply Commitment [Line Items]
Derivative, nonmonetary notional amount	0
Index Contracts | Modified Distillers Grains
Supply Commitment [Line Items]
Derivative, nonmonetary notional amount	0
Index Contracts | Corn Oil
Supply Commitment [Line Items]
Derivative, nonmonetary notional amount | lb	0
Index Contracts | Natural gas
Supply Commitment [Line Items]
Derivative, nonmonetary notional amount | MMBTU	0
Index Contracts | Denaturant
Supply Commitment [Line Items]
Derivative, nonmonetary notional amount | gal	0
Priced Contracts | Distillers Grains
Supply Commitment [Line Items]
Derivative, nonmonetary notional amount	3,100
Derivative, average forward price | $ / T	140.48
Priced Contracts | Modified Distillers Grains
Supply Commitment [Line Items]
Derivative, nonmonetary notional amount	18,700
Derivative, average forward price | $ / T	72.27
Priced Contracts | Corn Oil
Supply Commitment [Line Items]
Derivative, nonmonetary notional amount | lb	1,398
Derivative, average forward price | $ / lb	0.24
Priced Contracts | Corn contracts
Supply Commitment [Line Items]
Derivative, nonmonetary notional amount | bu	1,469,085
Derivative, average forward price | $ / bu	3.87
Priced Contracts | Natural gas
Supply Commitment [Line Items]
Derivative, nonmonetary notional amount | MMBTU	3,170,350
Derivative, average forward price | $ / MMBTU	2.41
Priced Contracts | Denaturant
Supply Commitment [Line Items]
Derivative, nonmonetary notional amount | gal	1,242
Derivative, average forward price | $ / gal	1.26