Highwater Ethanol (HEOL) 10-Q 12 Jun 23 2023 Q2 Quarterly report Financial data

Cover

Cover - shares	6 Months Ended
	Apr. 30, 2023	Jun. 12, 2023
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Apr. 30, 2023
Document Transition Report	false
Entity File Number	000-53588
Entity Registrant Name	HIGHWATER ETHANOL, LLC
Entity Incorporation, State or Country Code	MN
Entity Tax Identification Number	20-4798531
Entity Address, Address Line One	24500 US Highway 14,
Entity Address, City or Town	Lamberton,
Entity Address, State or Province	MN
Entity Address, Postal Zip Code	56152
City Area Code	507
Local Phone Number	752-6160
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		4,755
Entity Central Index Key	0001371451
Current Fiscal Year End Date	--10-31
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q2
Amendment Flag	false

Condensed Balance Sheets

Condensed Balance Sheets - USD ($)	Apr. 30, 2023	Oct. 31, 2022
Current Assets
Cash and cash equivalents	$ 14,358,020	$ 29,790,258
Derivative instruments	205,418	743,514
Accounts receivable	3,243,493	3,970,064
Inventories	16,916,565	19,197,522
Prepaids and other	501,056	989,188
Total current assets	35,224,552	54,690,546
Property and Equipment
Land and land improvements	13,210,146	13,152,403
Buildings	38,862,183	38,848,218
Office equipment	1,231,526	1,223,869
Plant and process equipment	87,454,438	87,235,438
Vehicles	123,779	123,779
Construction in progress	736,932	426,294
Gross property and equipment	141,619,004	141,010,001
Less accumulated depreciation	(105,391,302)	(100,585,625)
Net property and equipment	36,227,702	40,424,376
Other Assets
Investments	4,799,940	3,823,638
Right of use asset - operating leases	189,967	267,731
Right of use asset - finance leases	892,410	961,057
Other	458,232	708,232
Deposits	493,330	312,269
Total other assets	6,833,879	6,072,927
Total Assets	78,286,133	101,187,849
Current Liabilities
Accounts payable	8,981,078	20,068,351
Accrued expenses	1,095,924	1,521,820
Current portion of operating lease liability	162,077	157,691
Current portion of finance lease liability	128,363	124,889
Total Current Liabilities	10,367,442	21,872,751
Long-Term Liabilities
Operating lease liability	27,890	110,040
Finance lease liability	846,928	911,990
Total Long-Term Liabilities	874,818	1,022,030
Commitments and Contingencies
Members' Equity
Members' equity, 4,755 and 4,764 units outstanding	67,043,873	78,293,068
Total Liabilities and Members’ Equity	$ 78,286,133	$ 101,187,849

Condensed Balance Sheets (Paren

Condensed Balance Sheets (Parenthetical) - shares	Apr. 30, 2023	Oct. 31, 2022
Statement of Financial Position [Abstract]
Members' equity, units outstanding (in shares)	4,755	4,764

Condensed Unaudited Statements

Condensed Unaudited Statements of Operations - USD ($)	3 Months Ended		6 Months Ended
	Apr. 30, 2023	Apr. 30, 2022	Apr. 30, 2023	Apr. 30, 2022
Income Statement [Abstract]
Revenues	$ 48,711,980	$ 45,433,629	$ 97,573,545	$ 104,077,065
Cost of Goods Sold	46,044,506	39,743,090	91,556,970	81,225,430
Gross Profit	2,667,474	5,690,539	6,016,575	22,851,635
Operating Expenses	1,085,532	1,008,051	2,283,645	2,129,751
Operating Income	1,581,942	4,682,488	3,732,930	20,721,884
Other Income (Expense)
Interest income	25,256	133	84,925	8,700
Other income	90,336	17,956	202,056	80,268
Interest expense	(54,417)	(71,102)	(119,129)	(159,938)
Income from equity method investments	104,711	57,606	179,023	137,655
Total other income (expense), net	165,886	4,593	346,875	66,685
Net Income	$ 1,747,828	$ 4,687,081	$ 4,079,805	$ 20,788,569
Weighted Average Units Outstanding - Basic (in shares)	4,757	4,766	4,760	4,769
Weighted Average Units Outstanding - Diluted (in shares)	4,757	4,766	4,760	4,769
Net Income Per Unit, Basic (in dollars per share)	$ 367.42	$ 983.44	$ 857.10	$ 4,359.1
Net Income Per Unit, Diluted (in dollars per share)	367.42	983.44	857.10	4,359.1
Distributions Declared Per Unit (in dollars per share)	$ 0	$ 0	$ 3,200	$ 3,800

Statements of Changes in Member

Statements of Changes in Members' Equity (Unaudited) - USD ($)	Total	Members' Equity
Members' Equity, beginning balance at Oct. 31, 2021		$ 63,215,463
Members' Equity [Roll Forward]
Net income		16,101,488
Member distribution		(18,130,900)
Member unit repurchase		(75,500)
Members' Equity, ending balance at Jan. 31, 2022		61,110,551
Members' Equity, beginning balance at Oct. 31, 2021		63,215,463
Members' Equity [Roll Forward]
Net income	$ 20,788,569
Members' Equity, ending balance at Apr. 30, 2022		65,770,632
Members' Equity, beginning balance at Jan. 31, 2022		61,110,551
Members' Equity [Roll Forward]
Net income	4,687,081	4,687,081
Member unit repurchase		(27,000)
Members' Equity, ending balance at Apr. 30, 2022		65,770,632
Members' Equity, beginning balance at Oct. 31, 2022	78,293,068	78,293,068
Members' Equity [Roll Forward]
Net income		2,331,977
Member distribution		(15,240,000)
Member unit repurchase		(19,000)
Members' Equity, ending balance at Jan. 31, 2023		65,366,045
Members' Equity, beginning balance at Oct. 31, 2022	78,293,068	78,293,068
Members' Equity [Roll Forward]
Net income	4,079,805
Members' Equity, ending balance at Apr. 30, 2023	67,043,873	67,043,873
Members' Equity, beginning balance at Jan. 31, 2023		65,366,045
Members' Equity [Roll Forward]
Net income	1,747,828	1,747,828
Member unit repurchase		(70,000)
Members' Equity, ending balance at Apr. 30, 2023	$ 67,043,873	$ 67,043,873

Statements of Changes in Memb_2

Statements of Changes in Members' Equity (Unaudited) (Parenthetical) - shares	3 Months Ended
	Apr. 30, 2023	Jan. 31, 2023	Apr. 30, 2022	Jan. 31, 2022
Members' Equity [Abstract]
Member unit repurchase (in units)	7	2	4	12

Condensed Unaudited Statement_2

Condensed Unaudited Statements of Cash Flows - USD ($)	6 Months Ended
	Apr. 30, 2023	Apr. 30, 2022
Cash Flows from Operating Activities
Net income	$ 4,079,805	$ 20,788,569
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation and amortization	5,124,323	5,173,484
Earnings in excess of distributions from equity method investments	(109,023)	(158,154)
Non-cash patronage income	(286,571)	(169,557)
Changes in assets and liabilities
Accounts receivable	726,571	4,989,598
Inventories	2,280,957	(4,686,475)
Derivative instruments	538,097	(471,097)
Prepaids and other	307,071	253,992
Accounts payable	(11,214,378)	(10,926,053)
Accrued expenses	(425,896)	(165,374)
Net cash provided by operating activities	1,020,956	14,628,933
Cash Flows from Investing Activities
Capital expenditures	(481,898)	(345,390)
Purchase of Investments	(580,708)
Net cash used in investing activities	(1,062,606)	(345,390)
Cash Flows from Financing Activities
Payments on long-term debt	0	(10,200,000)
Proceeds from long-term debt	0	7,200,000
Member unit repurchases	(89,000)	(102,500)
Payment on finance lease liability	(61,588)	(58,300)
Member distributions paid	(15,240,000)	(18,130,900)
Net cash used in financing activities	(15,390,588)	(21,291,700)
Net Decrease in Cash and Cash Equivalents	(15,432,238)	(7,008,157)
Cash and Cash equivalents – Beginning of Period	29,790,258	7,549,008
Cash and Cash equivalents – End of Period	14,358,020	540,851
Supplemental Cash Flow Information
Cash paid for interest	27,812	63,007
Supplemental Disclosure of Noncash Financing and Investing Activities
Capital expenditures included in accounts payable	$ 178,343	$ 53,175

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	6 Months Ended
	Apr. 30, 2023
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, 2022 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, 2022, 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 April 30, 2023 and the results of operations and cash flows for all periods presented. Nature of Business Highwater Ethanol, LLC, (a Minnesota Limited Liability Company) operates an ethanol plant near Lamberton, Minnesota. The ethanol plant was constructed as a 50 million gallon per year nameplate ethanol plant. The plant currently operates in excess of its nameplate capacity due to the approval of air permit by the Minnesota Pollution Control Agency which allows for 70.2 million gallons of denatured ethanol per 12-month rolling average. 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 are 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 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 by single manifest railcars and trucks, and distillers grains sales, control transfers when loaded into the rail car. For ethanol sales by unit trains, control transfers once the last railcar of the unit train has loaded and the shipping documentation transferred to the marketer. 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 statement of operations is considered to be revenue from contracts with customers. The following table depicts the disaggregation of revenue according to product line for the three and six months ended April 30, 2023 and 2022: Three Months Ended April 30, 2023 Three Months Ended April 30, 2022 Six Months Ended April 30, 2023 Six Months Ended April 30, 2022 Revenue Sources Amount Amount Amount Amount Ethanol Sales $ 35,666,080 $ 33,367,026 $ 70,707,286 $ 81,724,493 Modified Distillers Grains Sales 2,894,548 2,481,634 6,255,476 4,222,833 Dried Distillers Grains Sales 6,921,665 5,984,706 13,062,393 11,371,309 Corn Oil Sales 3,229,687 3,600,263 7,548,390 6,758,430 Total Revenues $ 48,711,980 $ 45,433,629 $ 97,573,545 $ 104,077,065 Contract assets and contract liabilities: 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. The Company had short term contract liabilities from contracts with customers of $174,981 at April 30, 2023 and $0 at October 31, 2022. 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 ethanol, corn 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. Ethanol derivative changes in fair market value are included in revenue. Corn and natural gas derivative changes in fair market value are included in costs of goods sold. Carrying Value of Long-Lived Assets Long-lived assets, such as property and equipment, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If circumstances require a long-lived asset group be tested for possible impairment, the Company first compares undiscounted cash flows expected to be generated by an asset group to the carrying value of the asset group. If the carrying value of the long-lived asset group is not recoverable on an undiscounted cash flow basis, impairment is recognized to the extent that the carrying value exceeds its fair value. Fair value is determined through various valuation techniques including discounted cash flow models, quoted market values and third-party independent appraisals, as considered necessary. In accordance with the Company’s policy for evaluating impairment of long-lived assets described above, when a triggering event occurs management evaluates the recoverability of the facilities based on projected future cash flows from operations over the facilities’ estimated useful lives. In determining the projected future undiscounted cash flows, the Company makes significant assumptions concerning the future viability of the ethanol industry, the future price of corn in relation to the future price of ethanol and the overall demand in relation to production and supply capacity. The Company has not recorded any impairment for the six months ended April 30, 2023 and 2022. 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 April 30, 2023 due to the short maturity nature of these instruments (Level 2). Derivative instruments are carried at fair value, based on dealer quotes and live trading levels (Note 5). Investments The Company has a 5.26% 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 (loss) from equity method investments based on the most recent reliable data. Therefore, the net income (loss) which is reported in the Company's statement of operations for the period ended April 30, 2023 is based on the investee’s results of operations for the period ended March 31, 2023. The Company has cost method of investments in cooperatives. The corresponding patronage income is recorded in costs of goods sold.

UNCERTAINTIES

UNCERTAINTIES	6 Months Ended
	Apr. 30, 2023
Risks and Uncertainties [Abstract]
UNCERTAINTIES	UNCERTAINTIESThe 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	6 Months Ended
	Apr. 30, 2023
Inventory Disclosure [Abstract]
INVENTORIES	INVENTORIES Inventories consisted of the following at: April 30, 2023 October 31, 2022 Raw materials $ 5,605,749 $ 11,103,311 Spare parts and supplies 5,748,004 4,800,511 Work in process 1,323,851 1,342,412 Finished goods 4,238,961 1,951,288 Total $ 16,916,565 $ 19,197,522 The Company recorded a lower of cost or net realizable value write-down on finished goods inventory of approximately $22,000 and $0 at April 30, 2023 and October 31, 2022, respectively.

DERIVATIVE INSTRUMENTS

DERIVATIVE INSTRUMENTS	6 Months Ended
	Apr. 30, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract]
DERIVATIVE INSTRUMENTS	DERIVATIVE INSTRUMENTS As of April 30, 2023, the Company had entered into corn, natural gas 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 April 30, 2023 are not designated as hedges for accounting purposes. Commodity Contracts The following tables provide details regarding the Company's derivative instruments at April 30, 2023 and October 31, 2022: Instrument Balance Sheet location April 30, 2023 October 31, 2022 Corn, natural gas and ethanol contracts In gain position $ 1,020 $ — In loss position (328,783) (1,101,594) Deposits with broker 533,181 1,845,108 Current assets $ 205,418 $ 743,514 The Company has 592,000 bushels of corn inventory delivered under delayed-pricing contracts as of April 30, 2023. The contracts have various pricing deadlines through August 31, 2023. The Company is subject to risk of changes in the corn market until they are priced. 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 April 30, Operations location 2023 2022 Ethanol contracts Revenues $ 15,941 $ (80,667) Corn contracts Cost of goods sold 134,913 (503,445) Natural gas contracts Cost of goods sold (3,872) (92,044) Statement of Six Months Ended April 30, Operations location 2023 2022 Ethanol contracts Revenues $ 76,406 $ (76,279) Corn contracts Cost of goods sold 448,587 66,427 Natural gas contracts Cost of goods sold 80,003 (217,911)

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	6 Months Ended
	Apr. 30, 2023
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 April 30, 2023 Level 1 Level 2 Level 3 Derivative instruments - commodities In gain position $ 1,020 $ — $ 1,020 $ — In loss position (328,753) (8,431) (320,352) — Fair Value as of Fair Value Measurement Using October 31, 2022 Level 1 Level 2 Level 3 Derivative instruments - commodities In loss position $ (1,101,594) $ (45,075) $ (1,056,519) $ —

DEBT FINANCING

DEBT FINANCING	6 Months Ended
	Apr. 30, 2023
Debt Disclosure [Abstract]
DEBT FINANCING	DEBT FINANCING The Company had no long-term debt at April 30, 2023 or October 31, 2022, respectively. Bank Financing The Company has a loan facility with Compeer Financial f/k/a AgStar Financial Services, PCA ("Compeer") that includes a $20,000,000 Term Revolving Loan and a Revolving Line of Credit Loan. The loan facility with Compeer is secured by substantially all business assets and also subjects the Company to various financial and non-financial covenants. Term Revolving Loan The Term Revolving Loan is for $20,000,000, and has a variable interest rate based on the Wall Street Journal's Prime Rate plus 10 basis points with a minimum interest rate of 2.10%. The applicable interest rate at April 30, 2023 was 7.85%. 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 November 1, 2027. The outstanding balance on this note was $0 at April 30, 2023. 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 April 30, 2023. The Company is also required to pay unused commitment fees for the Term Revolving Loan. Revolving Line of Credit Loan The Revolving Line of Credit Loan is for an amount equal to the borrowing base, with a maximum limit of $10,000,000, and has a variable interest rate based on the Wall Street Journal's Prime Rate plus 10 basis points with a minimum interest rate of 2.10%. The amount available to borrow per the borrowing base calculations at April 30, 2023 was approximately $3,020,000. The applicable interest rate at April 30, 2023 was 7.85%. The Revolving Line of Credit Loan may be advanced, repaid and re-borrowed during the term. Monthly interest payments are due on the Revolving Line of Credit Loan with payment of all amounts outstanding due on November 1, 2023. The maturity date may be extended for up to four additional one year terms upon written request of the Company which will be deemed automatically granted by Compeer upon written certification that there is no event of default. The outstanding balance on this note was $0 at April 30, 2023. The Company is also required to pay unused commitment fees for the Revolving Line of Credit Loan. 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.

LEASES

LEASES	6 Months Ended
	Apr. 30, 2023
Leases [Abstract]
LEASES	LEASES 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 at the time the lease is entered into. An incremental borrowing rate of 5.5% 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 2 years and 6 years, respectively. These leases include options to extend the lease. When it is reasonably certain the Company will exercise those options, the Company will update the remaining terms of the leases. 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 April 30, 2023: For the Period Ending April 30, Operating Leases Finance Leases 2024 $ 168,480 $ 178,800 2025 28,080 178,800 2026 — 178,800 2027 — 178,800 2028 — 178,800 Thereafter — 268,200 Totals 196,560 1,162,200 Amount representing interest (6,595) (186,908) Lease liability $ 189,965 $ 975,292 Lease Cost Three Months ended Six Months ended Operating lease cost $ 42,120 $ 84,240 Short term lease cost 11,737 21,931 Finance lease cost Amortization of leased assets 34,324 68,647 Interest on lease liabilities 13,695 27,812 Net lease cost $ 101,876 $ 202,630
LEASES	LEASES 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 at the time the lease is entered into. An incremental borrowing rate of 5.5% 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 2 years and 6 years, respectively. These leases include options to extend the lease. When it is reasonably certain the Company will exercise those options, the Company will update the remaining terms of the leases. 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 April 30, 2023: For the Period Ending April 30, Operating Leases Finance Leases 2024 $ 168,480 $ 178,800 2025 28,080 178,800 2026 — 178,800 2027 — 178,800 2028 — 178,800 Thereafter — 268,200 Totals 196,560 1,162,200 Amount representing interest (6,595) (186,908) Lease liability $ 189,965 $ 975,292 Lease Cost Three Months ended Six Months ended Operating lease cost $ 42,120 $ 84,240 Short term lease cost 11,737 21,931 Finance lease cost Amortization of leased assets 34,324 68,647 Interest on lease liabilities 13,695 27,812 Net lease cost $ 101,876 $ 202,630

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	6 Months Ended
	Apr. 30, 2023
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 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. RPMG will also purchase, market, and distribute the Company's high purity alcohol. On August 26, 2022, the Company entered into a distillers grains marketing agreement with a marketer (RPMG) pursuant to which RPMG began purchasing and marketing all of the distillers grains produced at the plant beginning January 1, 2023. The Company pays RPMG a fee to market distillers grains to third party end purchasers and reimburse RPMG for certain charges paid to third parties. RPMG agrees to market the distillers grains using commercially reasonable efforts and endeavor to maximize price and minimize freight and other costs but does not guarantee the price that will be obtained from the sale. Following an initial term, the agreement will be automatically extended for additional terms unless either party gives proper notice of non-extension. The Company may immediately terminate the agreement upon written notice if RPMG fails on 3 separate occasions within any 12-month period to purchase or market distillers grains under circumstances where such breach or failure is not excused or upon RPMG's insolvency. RPMG may immediately terminate the agreement upon written notice if the variance of the Company's actual distillers grains inventory when compared to monthly production and inventory estimates exceeds certain threshold amounts. The Company has a crude corn oil marketing agreement with a marketer (RPMG) to market all corn oil to be produced at the plant for an initial term. Under the agreement, the Company must provide estimates of production and inventory of corn oil. The marketer may execute sales contracts with buyers for future delivery of corn oil. The Company receives a percentage of the F.O.B. sale price less a marketing fee, actual freight and transportation costs and certain taxes and other charges related to the purchase, delivery or sale. The Company is required to provide corn oil meeting certain specifications as provided in the agreement and the agreement provides for a process for rejection of nonconforming corn oil. The agreement automatically renews for successive terms unless terminated in accordance with the agreement. 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. Forward contracts outstanding are as follows at April 30, 2023: Quantity Average Price Date Delivery Through Purchase of corn (in bushels): Basis Contracts 835,091 12/31/25 Priced Contracts 2,711,548 $ 6.62 12/31/23 Total 3,546,639 Purchase of natural gas (in dekatherms): Priced contracts 3,270,000 $ 3.42 10/31/26 Total 3,270,000 Purchase of denaturant (in gallons): Priced contracts 203,500 $ 1.72 6/30/23 Total 203,500 Sales of dry distillers grains (in tons): Priced contracts 16,530 $ 247.71 12/31/23 Total 16,530 Sales of modified distillers grains (in tons) Priced contracts 8,200 $ 124.09 9/30/23 Total 8,200 Sales of corn oil (in pounds) Priced contracts 552,000 $ 0.53 5/31/23 Total 552,000

SUMMARY OF SIGNIFICANT ACCOUN_2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	6 Months Ended
	Apr. 30, 2023
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 are 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 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 by single manifest railcars and trucks, and distillers grains sales, control transfers when loaded into the rail car. For ethanol sales by unit trains, control transfers once the last railcar of the unit train has loaded and the shipping documentation transferred to the marketer. 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 statement of operations is considered to be revenue from contracts with customers. The following table depicts the disaggregation of revenue according to product line for the three and six months ended April 30, 2023 and 2022: Three Months Ended April 30, 2023 Three Months Ended April 30, 2022 Six Months Ended April 30, 2023 Six Months Ended April 30, 2022 Revenue Sources Amount Amount Amount Amount Ethanol Sales $ 35,666,080 $ 33,367,026 $ 70,707,286 $ 81,724,493 Modified Distillers Grains Sales 2,894,548 2,481,634 6,255,476 4,222,833 Dried Distillers Grains Sales 6,921,665 5,984,706 13,062,393 11,371,309 Corn Oil Sales 3,229,687 3,600,263 7,548,390 6,758,430 Total Revenues $ 48,711,980 $ 45,433,629 $ 97,573,545 $ 104,077,065 Contract assets and contract liabilities: 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. The Company had short term contract liabilities from contracts with customers of $174,981 at April 30, 2023 and $0 at October 31, 2022. Shipping Costs
Operating Segment	Operating SegmentThe 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 ethanol, corn 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. Ethanol derivative changes in fair market value are included in revenue. Corn and natural gas derivative changes in fair market value are included in costs of goods sold.
Carrying Value of Long-Lived Assets	Carrying Value of Long-Lived Assets Long-lived assets, such as property and equipment, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If circumstances require a long-lived asset group be tested for possible impairment, the Company first compares undiscounted cash flows expected to be generated by an asset group to the carrying value of the asset group. If the carrying value of the long-lived asset group is not recoverable on an undiscounted cash flow basis, impairment is recognized to the extent that the carrying value exceeds its fair value. Fair value is determined through various valuation techniques including discounted cash flow models, quoted market values and third-party independent appraisals, as considered necessary. In accordance with the Company’s policy for evaluating impairment of long-lived assets described above, when a triggering event occurs management evaluates the recoverability of the facilities based on projected future cash flows from operations over the facilities’ estimated useful lives. In determining the projected future undiscounted cash flows, the Company makes significant assumptions concerning the future viability of the ethanol industry, the future price of corn in relation to the future price of ethanol and the overall demand in relation to production and supply capacity. The Company has not recorded any impairment for the six months ended April 30, 2023 and 2022.
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 April 30, 2023 due to the short maturity nature of these instruments (Level 2).
Investments	Investments The Company has a 5.26% 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 (loss) from equity method investments based on the most recent reliable data. Therefore, the net income (loss) which is reported in the Company's statement of operations for the period ended April 30, 2023 is based on the investee’s results of operations for the period ended March 31, 2023. The Company has cost method of investments in cooperatives. The corresponding patronage income is recorded in costs of goods sold.

SUMMARY OF SIGNIFICANT ACCOUN_3

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	6 Months Ended
	Apr. 30, 2023
Accounting Policies [Abstract]
Schedule of Disaggregation of Revenue	The following table depicts the disaggregation of revenue according to product line for the three and six months ended April 30, 2023 and 2022: Three Months Ended April 30, 2023 Three Months Ended April 30, 2022 Six Months Ended April 30, 2023 Six Months Ended April 30, 2022 Revenue Sources Amount Amount Amount Amount Ethanol Sales $ 35,666,080 $ 33,367,026 $ 70,707,286 $ 81,724,493 Modified Distillers Grains Sales 2,894,548 2,481,634 6,255,476 4,222,833 Dried Distillers Grains Sales 6,921,665 5,984,706 13,062,393 11,371,309 Corn Oil Sales 3,229,687 3,600,263 7,548,390 6,758,430 Total Revenues $ 48,711,980 $ 45,433,629 $ 97,573,545 $ 104,077,065

INVENTORIES (Tables)

INVENTORIES (Tables)	6 Months Ended
	Apr. 30, 2023
Inventory Disclosure [Abstract]
Schedule of Inventory	Inventories consisted of the following at: April 30, 2023 October 31, 2022 Raw materials $ 5,605,749 $ 11,103,311 Spare parts and supplies 5,748,004 4,800,511 Work in process 1,323,851 1,342,412 Finished goods 4,238,961 1,951,288 Total $ 16,916,565 $ 19,197,522

DERIVATIVE INSTRUMENTS (Tables)

DERIVATIVE INSTRUMENTS (Tables)	6 Months Ended
	Apr. 30, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Schedule of Derivatives Instruments	The following tables provide details regarding the Company's derivative instruments at April 30, 2023 and October 31, 2022: Instrument Balance Sheet location April 30, 2023 October 31, 2022 Corn, natural gas and ethanol contracts In gain position $ 1,020 $ — In loss position (328,783) (1,101,594) Deposits with broker 533,181 1,845,108 Current assets $ 205,418 $ 743,514
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 April 30, Operations location 2023 2022 Ethanol contracts Revenues $ 15,941 $ (80,667) Corn contracts Cost of goods sold 134,913 (503,445) Natural gas contracts Cost of goods sold (3,872) (92,044) Statement of Six Months Ended April 30, Operations location 2023 2022 Ethanol contracts Revenues $ 76,406 $ (76,279) Corn contracts Cost of goods sold 448,587 66,427 Natural gas contracts Cost of goods sold 80,003 (217,911)

FAIR VALUE MEASUREMENTS (Tables

FAIR VALUE MEASUREMENTS (Tables)	6 Months Ended
	Apr. 30, 2023
Fair Value Disclosures [Abstract]
Schedule of Assets (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 April 30, 2023 Level 1 Level 2 Level 3 Derivative instruments - commodities In gain position $ 1,020 $ — $ 1,020 $ — In loss position (328,753) (8,431) (320,352) — Fair Value as of Fair Value Measurement Using October 31, 2022 Level 1 Level 2 Level 3 Derivative instruments - commodities In loss position $ (1,101,594) $ (45,075) $ (1,056,519) $ —

LEASES (Tables)

LEASES (Tables)	6 Months Ended
	Apr. 30, 2023
Leases [Abstract]
Schedule of Maturities of Operating Lease Liabilities	The following table summarizes the remaining maturities of the Company’s operating and finance lease liabilities as of April 30, 2023: For the Period Ending April 30, Operating Leases Finance Leases 2024 $ 168,480 $ 178,800 2025 28,080 178,800 2026 — 178,800 2027 — 178,800 2028 — 178,800 Thereafter — 268,200 Totals 196,560 1,162,200 Amount representing interest (6,595) (186,908) Lease liability $ 189,965 $ 975,292
Schedule of Maturities of Financing Lease Liabilities	The following table summarizes the remaining maturities of the Company’s operating and finance lease liabilities as of April 30, 2023: For the Period Ending April 30, Operating Leases Finance Leases 2024 $ 168,480 $ 178,800 2025 28,080 178,800 2026 — 178,800 2027 — 178,800 2028 — 178,800 Thereafter — 268,200 Totals 196,560 1,162,200 Amount representing interest (6,595) (186,908) Lease liability $ 189,965 $ 975,292
Schedule of Lease Cost	Lease Cost Three Months ended Six Months ended Operating lease cost $ 42,120 $ 84,240 Short term lease cost 11,737 21,931 Finance lease cost Amortization of leased assets 34,324 68,647 Interest on lease liabilities 13,695 27,812 Net lease cost $ 101,876 $ 202,630

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Tables)	6 Months Ended
	Apr. 30, 2023
Commitments and Contingencies Disclosure [Abstract]
Schedule of Forward Contracts	Forward contracts outstanding are as follows at April 30, 2023: Quantity Average Price Date Delivery Through Purchase of corn (in bushels): Basis Contracts 835,091 12/31/25 Priced Contracts 2,711,548 $ 6.62 12/31/23 Total 3,546,639 Purchase of natural gas (in dekatherms): Priced contracts 3,270,000 $ 3.42 10/31/26 Total 3,270,000 Purchase of denaturant (in gallons): Priced contracts 203,500 $ 1.72 6/30/23 Total 203,500 Sales of dry distillers grains (in tons): Priced contracts 16,530 $ 247.71 12/31/23 Total 16,530 Sales of modified distillers grains (in tons) Priced contracts 8,200 $ 124.09 9/30/23 Total 8,200 Sales of corn oil (in pounds) Priced contracts 552,000 $ 0.53 5/31/23 Total 552,000

SUMMARY OF SIGNIFICANT ACCOUN_4

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Narrative (Details) gal in Millions			6 Months Ended
	May 22, 2023 USD ($)	Feb. 17, 2023 USD ($)	Apr. 30, 2023 USD ($) segment gal	Apr. 30, 2022 USD ($)	Oct. 31, 2022 USD ($)
Product Information [Line Items]
Short term contract liabilities from contracts with customers			$ 174,981		$ 0
Number of operating segments | segment			1
Impairment of long-lived assets			$ 0	$ 0
Renewable Fuels Marketing Group (RPMG)
Product Information [Line Items]
Ownership percentage			5.26%
Lawrenceville Tank, LLC
Product Information [Line Items]
Ownership percentage			7%
Ethanol
Product Information [Line Items]
Annual production capacity (in gallons) | gal			50
Denatured Ethanol
Product Information [Line Items]
Annual production capacity (in gallons) | gal			70.2
Grant
Product Information [Line Items]
Amount of award from program received		$ 100,000
Grant | Subsequent Event
Product Information [Line Items]
Amount of award from program received	$ 81,000

SUMMARY OF SIGNIFICANT ACCOUN_5

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Disaggregation of Revenue (Details) - USD ($)	3 Months Ended		6 Months Ended
	Apr. 30, 2023	Apr. 30, 2022	Apr. 30, 2023	Apr. 30, 2022
Disaggregation of Revenue [Line Items]
Revenues	$ 48,711,980	$ 45,433,629	$ 97,573,545	$ 104,077,065
Ethanol Sales
Disaggregation of Revenue [Line Items]
Revenues	35,666,080	33,367,026	70,707,286	81,724,493
Modified Distillers Grains Sales
Disaggregation of Revenue [Line Items]
Revenues	2,894,548	2,481,634	6,255,476	4,222,833
Dried Distillers Grains Sales
Disaggregation of Revenue [Line Items]
Revenues	6,921,665	5,984,706	13,062,393	11,371,309
Corn Oil Sales
Disaggregation of Revenue [Line Items]
Revenues	$ 3,229,687	$ 3,600,263	$ 7,548,390	$ 6,758,430

INVENTORIES - Schedule of Inven

INVENTORIES - Schedule of Inventory (Details) - USD ($)	Apr. 30, 2023	Oct. 31, 2022
Inventory Disclosure [Abstract]
Raw materials	$ 5,605,749	$ 11,103,311
Spare parts and supplies	5,748,004	4,800,511
Work in process	1,323,851	1,342,412
Finished goods	4,238,961	1,951,288
Total	$ 16,916,565	$ 19,197,522

INVENTORIES - Narrative (Detail

INVENTORIES - Narrative (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Apr. 30, 2023	Oct. 31, 2022
Inventory Disclosure [Abstract]
Inventory write-down	$ 22	$ 0

DERIVATIVE INSTRUMENTS - Schedu

DERIVATIVE INSTRUMENTS - Schedule of Derivatives Instruments (Details) - USD ($)	Apr. 30, 2023	Oct. 31, 2022
Derivatives, Fair Value [Line Items]
Derivative asset, fair value	$ 205,418	$ 743,514
Not designated as hedging instrument | Commodity Contract
Derivatives, Fair Value [Line Items]
In gain position	1,020	0
In loss position	(328,783)	(1,101,594)
Deposits with broker	533,181	1,845,108
Derivative asset, fair value	$ 205,418	$ 743,514

DERIVATIVE INSTRUMENTS - Narrat

DERIVATIVE INSTRUMENTS - Narrative (Details)	Apr. 30, 2023 bu
Corn Delayed Pricing Contract | Not designated as hedging instrument
Derivative [Line Items]
Derivative, nonmonetary notional amount	592,000

DERIVATIVE INSTRUMENTS - Sche_2

DERIVATIVE INSTRUMENTS - Schedule of Gains (Losses) From Derivative Instruments (Details) - Not designated as hedging instrument - USD ($)	3 Months Ended		6 Months Ended
	Apr. 30, 2023	Apr. 30, 2022	Apr. 30, 2023	Apr. 30, 2022
Ethanol contracts
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) on derivative	$ 15,941	$ (80,667)	$ 76,406	$ (76,279)
Corn contracts
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) on derivative	134,913	(503,445)	448,587	66,427
Natural gas contracts
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) on derivative	$ (3,872)	$ (92,044)	$ 80,003	$ (217,911)

FAIR VALUE MEASUREMENTS (Detail

FAIR VALUE MEASUREMENTS (Details) - Commodity Contract - Recurring - USD ($)	Apr. 30, 2023	Oct. 31, 2022
Derivative instruments - commodities
In gain position	$ 1,020
In loss position	(328,753)	$ (1,101,594)
Level 1
Derivative instruments - commodities
In gain position	0
In loss position	(8,431)	(45,075)
Level 2
Derivative instruments - commodities
In gain position	1,020
In loss position	(320,352)	(1,056,519)
Level 3
Derivative instruments - commodities
In gain position	0
In loss position	$ 0	$ 0

DEBT FINANCING (Details)

DEBT FINANCING (Details)	6 Months Ended
	Apr. 30, 2023 USD ($) extension
Debt Instrument [Line Items]
Annual capital expenditure limit	$ 5,000,000
Working capital requirement	9,000,000
75 percent of net income
Debt Instrument [Line Items]
Working capital requirement	$ 9,000,000
Restrictive covenants (as a percent)	75%
Unlimited Amount
Debt Instrument [Line Items]
Working capital requirement	$ 12,000,000
Revolving Credit Facility
Debt Instrument [Line Items]
Effective interest rate	7.85%
Outstanding balance	$ 0
Maximum borrowing capacity	10,000,000
Current borrowing capacity	$ 3,020,000
Minimum | Revolving Credit Facility
Debt Instrument [Line Items]
Debt stated interest rate	2.10%
Prime Rate | Revolving Credit Facility
Debt Instrument [Line Items]
Basis spread on variable rate (as a percent)	0.10%
Notes payable to banks | Revolving Credit Facility
Debt Instrument [Line Items]
Debt instrument, number of extensions | extension	4
Additional maturity period	1 year
Notes payable to banks | Term Revolving Loan
Debt Instrument [Line Items]
Debt instrument, face amount	$ 20,000,000
Effective interest rate	7.85%
Outstanding balance	$ 0
Notes payable to banks | Term Revolving Loan | 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 | Term Revolving Loan | Minimum
Debt Instrument [Line Items]
Debt stated interest rate	2.10%
Notes payable to banks | Term Revolving Loan | Prime Rate
Debt Instrument [Line Items]
Basis spread on variable rate (as a percent)	0.10%

LEASES - Narrative (Details)

LEASES - Narrative (Details)	Apr. 30, 2023
Leases [Abstract]
Operating lease discount rate	5.50%
Operating leases remaining lease terms	2 years
Finance leases remaining lease terms	6 years

LEASES - Maturities of Operatin

LEASES - Maturities of Operating and Financing Lease Liabilities (Details)	Apr. 30, 2023 USD ($)
Operating Leases
2024	$ 168,480
2025	28,080
2026	0
2027	0
2028	0
Thereafter	0
Totals	196,560
Amount representing interest	(6,595)
Lease liability	189,965
Finance Leases
2024	178,800
2025	178,800
2026	178,800
2027	178,800
2028	178,800
Thereafter	268,200
Totals	1,162,200
Amount representing interest	(186,908)
Lease liability	$ 975,292

LEASES - Lease Cost (Details)

LEASES - Lease Cost (Details) - USD ($)	3 Months Ended	6 Months Ended
	Apr. 30, 2023	Apr. 30, 2023
Leases [Abstract]
Operating lease cost	$ 42,120	$ 84,240
Short term lease cost	11,737	21,931
Amortization of leased assets	34,324	68,647
Interest on lease liabilities	13,695	27,812
Net lease cost	$ 101,876	$ 202,630

COMMITMENTS AND CONTINGENCIES -

COMMITMENTS AND CONTINGENCIES - Marketing Agreements (Details) - Distillers Grains Marketing Group - Marketing Agreements	Aug. 26, 2022 occasion
Related Party Transaction [Line Items]
Marketing agreement, termination terms, number of separate occasions	3
Marketing agreement, termination terms, number of separate occasions, period	12 months

COMMITMENTS AND CONTINGENCIES_2

COMMITMENTS AND CONTINGENCIES - Forward Contracts (Details)	Apr. 30, 2023 gal MMBTU T bu lb $ / T $ / lb $ / gal $ / MMBTU $ / bu
Distillers grains
Supply Commitment [Line Items]
Derivative, nonmonetary notional amount	16,530
Modified distillers grains
Supply Commitment [Line Items]
Derivative, nonmonetary notional amount	8,200
Corn oil
Supply Commitment [Line Items]
Derivative, nonmonetary notional amount | lb	552,000
Corn contracts
Supply Commitment [Line Items]
Derivative, nonmonetary notional amount | bu	3,546,639
Natural gas
Supply Commitment [Line Items]
Derivative, nonmonetary notional amount | MMBTU	3,270,000
Denaturant
Supply Commitment [Line Items]
Derivative, nonmonetary notional amount | gal	203,500
Basis Contracts | Corn contracts
Supply Commitment [Line Items]
Derivative, nonmonetary notional amount | bu	835,091
Priced contracts | Distillers grains
Supply Commitment [Line Items]
Derivative, nonmonetary notional amount	16,530
Derivative, average forward price | $ / T	247.71
Priced contracts | Modified distillers grains
Supply Commitment [Line Items]
Derivative, nonmonetary notional amount	8,200
Derivative, average forward price | $ / T	124.09
Priced contracts | Corn oil
Supply Commitment [Line Items]
Derivative, nonmonetary notional amount | lb	552,000
Derivative, average forward price | $ / lb	0.53
Priced contracts | Corn contracts
Supply Commitment [Line Items]
Derivative, nonmonetary notional amount | bu	2,711,548
Derivative, average forward price | $ / bu	6.62
Priced contracts | Natural gas
Supply Commitment [Line Items]
Derivative, nonmonetary notional amount | MMBTU	3,270,000
Derivative, average forward price | $ / MMBTU	3.42
Priced contracts | Denaturant
Supply Commitment [Line Items]
Derivative, nonmonetary notional amount | gal	203,500
Derivative, average forward price | $ / gal	1.72