v2.4.0.6
Document and Entity Information
9 Months Ended
Jun. 30, 2012
Aug. 01, 2012
Entity Registrant Name Lincolnway Energy, LLC  
Entity Central Index Key 0001350420  
Current Fiscal Year End Date --09-30  
Entity Filer Category Non-accelerated Filer  
Document Type 10-Q  
Document Period End Date Jun. 30, 2012  
Document Fiscal Year Focus 2012  
Document Fiscal Period Focus Q3  
Amendment Flag false  
Entity Common Stock, Shares Outstanding   42,049
v2.4.0.6
Balance Sheets Statement (USD $)
Jun. 30, 2012
Sep. 30, 2011
CURRENT ASSETS    
Cash and cash equivalents $ 0 $ 34,135
Due from broker 1,928,986 227,670
Derivative financial instruments (Note 8) 0 292,375
Trade and other accounts receivable (Note 6) 6,343,186 8,041,523
Inventories (Note 3) 7,209,083 6,350,544
Prepaid expenses and other 390,095 328,881
Total current assets 15,871,350 15,275,128
PROPERTY AND EQUIPMENT    
Land and land improvements 6,949,062 7,633,650
Buildings and improvements 1,604,305 1,604,305
Plant and process equipment 79,568,862 76,014,786
Office furniture and equipment 406,277 407,725
Construction in progress 17,502 2,562,694
Property, Plant and Equipment, Gross 88,546,008 88,223,160
Accumulated depreciation (49,343,618) (43,529,798)
Property, Plant and Equipment, Net 39,202,390 44,693,362
OTHER ASSETS    
Restricted cash 351,000 351,000
Financing costs, net of amortization of $293,300 and $252,070 178,661 219,891
Deposit 298,350 476,437
Investments 190,488 182,970
Other Assets, Noncurrent 1,018,499 1,230,298
Assets 56,092,239 61,198,788
CURRENT LIABILITIES    
Checks in excess of bank balance 46,926 0
Accounts payable 1,734,114 1,359,836
Accounts payable, related party (Note 5) 1,150,605 1,179,981
Current maturities of long-term debt (Note 4) 1,525,350 1,452,409
Notes Payable, Related Parties, Current 425,000 0
Accrued expenses 934,595 879,232
Derivative financial instruments 1,782,463 0
Total current liabilities 7,599,053 4,871,458
NONCURRENT LIABILITIES    
Long-term debt, less current maturities (Note 4) 437,671 2,738,021
Settlement payable, net of current amount, related party (Note 5) 1,275,000 0
Other 450,000 450,000
Total noncurrent liabilities 2,162,671 3,188,021
Commitments and Contingencies 0 0
MEMBERS' EQUITY    
Member contributions, 42,049 units issued and outstanding 38,990,105 38,990,105
Retained Earnings 7,340,410 14,149,204
Members' Equity 46,330,515 53,139,309
Liabilities and Equity $ 56,092,239 $ 61,198,788
v2.4.0.6
Balance Sheets Parenthetical Statement (USD $)
9 Months Ended 12 Months Ended
Jun. 30, 2012
Sep. 30, 2011
OTHER ASSETS    
Financing costs, net of amortization of $ 293,300 $ 252,070
MEMBER'S EQUITY    
Units issued and outstanding 42,049 42,049
v2.4.0.6
Statements of Operations Statement (USD $)
3 Months Ended 9 Months Ended
Jun. 30, 2012
Jun. 30, 2011
Jun. 30, 2012
Jun. 30, 2011
Revenues (Notes 2 and 6) $ 33,111,549 $ 42,028,975 $ 118,452,914 $ 121,436,098
Cost of goods sold 37,102,392 44,928,632 120,667,486 120,925,209
Gross profit (loss) (3,990,843) (2,899,657) (2,214,572) 510,889
General and administrative expenses 807,137 641,728 2,207,729 1,965,052
(Gain) loss on sale or disposal of property and equipment (Note10) 6,434 0 (489,664) 0
Contract settlement fee 1,700,000 0 1,700,000 0
Operating loss (6,504,414) (3,541,385) (5,632,637) (1,454,163)
Other income (expense):        
Interest income 1,686 2,890 5,973 7,195
Interest expense (51,470) (180,405) (130,905) (491,058)
Other nonoperating income and expense (49,784) (177,515) (124,932) (483,863)
Net loss $ (6,554,198) $ (3,718,900) $ (5,757,569) $ (1,938,026)
Weighted average units outstanding 42,049 42,049 42,049 42,049
Net loss per unit - basic and diluted $ (155.87) $ (88.44) $ (136.93) $ (46.09)
v2.4.0.6
Statement of Cash Flows Statement (USD $)
9 Months Ended
Jun. 30, 2012
Jun. 30, 2011
CASH FLOWS FROM OPERATING ACTIVITIES    
Net loss $ (5,757,569) $ (1,938,026)
Adjustments to reconcile net loss to net cash provided by operating activities:    
Depreciation and amortization 5,867,707 6,289,241
(Gain) loss on sale or disposal of property and equipment (489,664) 62,696
Contract settlement fee 1,700,000 0
Changes in working capital components:    
Due from broker (1,701,316) 1,218,903
Trade and other accounts receivable 1,698,337 (1,484,177)
Inventories (858,539) (3,708,632)
Prepaid expenses and other (61,214) (61,093)
Deposits 178,087 (476,437)
Accounts payable 374,278 108,339
Accounts payable, related party (29,376) 163,756
Accrued expenses 55,363 (710)
Derivative financial instruments 2,074,838 (841,117)
Net cash provided by (used in) operating activities 3,050,932 (667,257)
CASH FLOWS FROM INVESTING ACTIVITIES    
Purchase of property and equipment (1,026,841) (1,439,045)
Proceeds from sale of property 1,181,000 0
Purchase of investments (7,518) (12,877)
Net cash provided by (used in) investing activities 146,641 (1,451,922)
CASH FLOWS FROM FINANCING ACTIVITIES    
Payments on long-term borrowings (2,227,409) (71,373)
Member distributions (1,051,225) 0
Checks in excess of bank balance 46,926 0
Net cash (used in) financing activities (3,231,708) (71,373)
Net decrease in cash and cash equivalents (34,135) (2,190,552)
CASH AND CASH EQUIVALENTS    
Beginning 34,135 2,858,110
Ending 0 667,558
SUPPLEMENTAL DISCLOSURE OF CASH FLOW    
INFORMATION, cash paid for interest net of amount capitalized 151,519 505,167
SUPPLEMENTAL DISCLOSURES OF NONCASH INVESTING AND FINANCING ACTIVITIES    
Construction in progress included in accounts payable $ 0 $ 166,180
v2.4.0.6
Nature of Business and Significant Accounting Policies
9 Months Ended
Jun. 30, 2012
Nature of Business and Significant Accounting Policies [Abstract]  
Business Description and Accounting Policies
Nature of Business and Significant Accounting Policies

Principal business activity:  Lincolnway Energy, LLC (the Company), located in Nevada, Iowa, was formed in May 2004 to pool investors to build a 50 million gallon annual production dry mill corn-based ethanol plant.  The Company began making sales on May 30, 2006 and became operational during the quarter ended June 30, 2006.

Basis of presentation and other information: The balance sheet as of September 30, 2011 was derived from the Company's audited balance sheet as of that date.  The accompanying financial statements as of and for the three and nine months ended June 30, 2012 and 2011 are unaudited and reflect all adjustments (consisting only of normal recurring adjustments) which are, in the opinion of management, necessary for a fair presentation of the financial position and operating results for the interim periods.  These unaudited financial statements and notes should be read in conjunction with the audited financial statements and notes thereto, for the year ended September 30, 2011 contained in the Company's Annual Report  on Form 10-K.  The results of operations for the interim periods presented are not necessarily indicative of the results for the entire year.

Use of estimates:  The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period.  Actual results could differ from those estimates.

Trade accounts receivable: Trade accounts receivable are recorded at original invoice amounts less an estimate made for doubtful receivables based on a review of all outstanding amounts on a monthly basis. Management determines the allowance for doubtful accounts by regularly evaluating individual customer receivables and considering customers financial condition, credit history and current economic conditions. Receivables are written off when deemed uncollectible. Recoveries of receivables written off are recorded when received. A receivable is considered past due if any portion of the receivable is outstanding more than 90 days.
  
Income taxes:  The Company is organized as a partnership for federal and state income tax purposes and generally does not incur income taxes.  Instead, the Company's earnings and losses are included in the income tax returns of the members.  Therefore, no provision or liability for federal or state income taxes has been included in these financial statements.

Earnings per unit:  Basic and diluted earnings per unit have been computed on the basis of the weighted average number of units outstanding during each period presented.

Fair Value of financial instruments:  The carrying amounts of cash and cash equivalents, due from broker, derivative financial instruments, trade and other accounts receivable, accounts payable and accrued expenses approximate fair value.  The carrying amount of long-term debt approximates fair value because the interest rates fluctuate with market rates or the fixed rates approximate current rates offered to the Company for debt with similar terms and maturities.
v2.4.0.6
Revenue by product
9 Months Ended
Jun. 30, 2012
Revenue by product [Abstract]  
Revenue by product
Revenue

Components of revenue are as follows:

(Excludes hedging activity)
 
Three Months
 
Three Months
 
Nine months
 
Nine months
 
 
 Ended
 
 Ended
 
Ended
 
Ended
(In thousands)
 
June 30, 2012
 
June 30, 2011
 
June 30, 2012
 
June 30, 2011
Ethanol
 
$
24,437

 
$
32,846

 
$
89,578

 
$
97,282

Distillers' Grains
 
7,785

 
7,906

 
25,636

 
22,464

Other
 
859

 
1,025

 
3,245

 
2,381

v2.4.0.6
Inventories
9 Months Ended
Jun. 30, 2012
Inventories [Abstract]  
Inventory Disclosure
Inventories

Inventories consist of the following as of:
 
June 30,
2012
 
September 30,
2011
 
 
 
 
Raw materials, including corn, coal, chemicals and supplies
$
3,653,368

 
$
3,956,604

Work in process
1,210,314

 
1,303,654

Ethanol and distillers grains
2,345,401

 
1,090,286

Total
$
7,209,083

 
$
6,350,544

v2.4.0.6
Long-Term Debt
9 Months Ended
Jun. 30, 2012
Long-term Debt, Unclassified [Abstract]  
Debt Disclosure
Long-Term Debt

Long-term debt consists of the following as of:

 
June 30,
2012
 
September 30,
2011
 
 
 
 
Construction term loan. (A)
$
1,500,000

 
$
1,500,000

 
 

 
 

Construction/revolving term loan. (B)
225,000

 
1,000,000

 
 

 
 

Note payable to contractor (C)

 
1,250,000

 
 

 
 

Note payable to Iowa Department of Economic Development. (D)

 
152,500

 
 

 
 

Note payable to Iowa Department of Transportation. (E)
238,021

 
287,930

 
 
 
 

 
1,963,021

 
4,190,430

Less current maturities
(1,525,350
)
 
(1,452,409
)
 
$
437,671

 
$
2,738,021

 
 
 
 
(A)
The Company has a construction and term loan with a financial institution.  Borrowings under the term loan include a variable interest rate based on the one-month LIBOR index rate plus 3.30%.  The rate will be reset automatically without notice to the Company, on the first “US Banking Day” of each succeeding week, and each change shall be applicable to all outstanding balances as of that date.  The agreement requires principal payments of $1,250,000 per quarter commencing in December 2006 through March 2013.  The agreement requires the maintenance of certain financial and nonfinancial covenants.   Borrowings under this agreement are collateralized by substantially all of the Company's assets.  As of June 30, 2012, the Company has made principal payments of $37,500,000, since the inception of the loan, which under the terms of the agreement have been applied to scheduled payments in order of their maturity. The Company's next scheduled payment under the agreement is due in December 2012.

(B)
The Company has a $10,000,000 construction/revolving term credit facility with a financial institution which expires on September 1, 2015.  Borrowings under the credit facility agreement include a variable interest rate based on the one-month LIBOR index rate plus 3.30%.  The rate will be reset automatically without notice to the Company, on the first “US Banking Day” of each succeeding week, and each change shall be applicable to all outstanding balances as of that date.  Borrowings are subject to borrowing base restrictions as defined in the agreement.  The credit facility and revolving credit agreement require the maintenance of certain financial and nonfinancial covenants.  Borrowings under this agreement are collateralized by substantially all of the Company's assets.  

(C)
The Company had a $1,125,000 subordinated note payable dated May 22, 2006 to an unrelated third party. The note payable was paid in full during the quarter ended December 31, 2011.

(D)
The Company also had a $300,000 loan agreement with the Iowa Department of Economic Development (IDED).  The loan was noninterest-bearing and due in monthly payments of $2,500 beginning December 2006 and a final payment of $152,500 due November 2011.  Borrowings under this agreement were collateralized by substantially all of the Company's assets and subordinate to the above financial institution debt and construction and revolving loan/credit agreements included in (A) and (B). On October 5, 2011 the final payment of $152,500 was made by the Company.

(E) The Company entered into a $500,000 loan agreement with the Iowa Department of Transportation (IDOT) in February 2005.  The proceeds were disbursed upon submission of paid invoices.  Interest at 2.11% began accruing on January 1, 2007.  Principal payments will be due semiannually through July 2016.  The loan is secured by all rail track material constructed as part of the plant construction.  The debt is subordinate to the above financial institution debt and construction and revolving loan/credit agreements included in (A) and (B).
v2.4.0.6
Related-Party Transactions
9 Months Ended
Jun. 30, 2012
Related Party Transactions [Abstract]  
Related Party Transactions Disclosure
Related-Party Transactions

The Company entered into an agreement on January 24, 2006 with the Heart of Iowa Coop , dba Key Cooperative (Key), a member of the Company, to provide 100% of the requirement of corn for use in the operation of the ethanol plant. The agreement may be terminated before the end of the term by providing six months' notice of termination and paying the other party $2,000,000, reduced by $50,000 for each completed year of the agreement.  The Company purchased corn totaling $26,049,305 and $90,508,021 for the three months and nine months ended June 30, 2012.  There were corn purchases of $35,466,965 and $91,196,046 for the three months and nine months ended June 30, 2011. As of June 30, 2012, the Company had several cash corn contracts with Key representing 2,357,379 bushels of corn, for a commitment of $15,418,343.  The contracts mature on various dates through August 2012.  The Company also has made some miscellaneous purchases from Key (storage fees, fuel, and propane costs) amounting to $90,427 and $134,623 for the three months and nine months ended June 30, 2012 , respectively.  There were miscellaneous purchases of $34,094 and $68,570 for the three months and nine months ended June 30, 2011. As of June 30, 2012 the amount due to Key is $1,150,155.

On 4/10/2012, the Company delivered notice to Key to terminate the Amended and Restated Grain Handling Agreement they hold with Key. The termination of the agreement will be six months from the date of the notice, effective October 10, 2012. The Company will begin to originate corn in house at the time of the termination. The Company recorded a termination cost of $1,700,000 as required under the agreement, which was expensed for the quarter ending June 30, 2012. Payments of $425,000 will be made annually over a four year period with interest at the prime rate on the date of termination.

The Company is also purchasing propane from Innovative Ag Services, formerly, Prairie Land Cooperative, a member of the Company.  Total purchases for the three months and nine months ended June 30, 2012 is $1,393 and $19,546, respectively. Total purchases for the three months and nine months ended June 30, 2011 is $580 and $15,003, respectively.  As of June 30, 2012 there is $450 due to Innovative Ag Services.
v2.4.0.6
Commitments and Major Customer
9 Months Ended
Jun. 30, 2012
Commitments and Major Customer [Abstract]  
Commitments and Major Customer
Commitments and Major Customer

On September 25, 2009, the Company entered into a agreement with an unrelated entity. The agreement became effective on October 1, 2009. The unrelated entity is responsible for marketing and purchasing all of the ethanol produced by the Company. For the three months and nine months ended June 30, 2012 the Company has expensed $148,234 and $500,453, respectively, under this agreement for marketing fees. For the three months and nine months ended June 30, 2011 the Company has expensed $159,529 and $518,300, respectively. Revenues with this customer were $24,437,615 and $89,578,418 for the three and six months ended June 30, 2012 , respectively. For the three months and nine months ended June 30, 2011, revenues with this customer were $32,845,845 and $97,281,863, respectively. Trade accounts receivable of $4,437,273 was due from the customer as of June 30, 2012.

The Company has an agreement with an unrelated entity for marketing, selling and distributing the distiller's grains. For the three months and nine months ended June 30, 2012, the Company has expensed marketing fees of $131,250 and $431,134, respectively, under this agreement. The company has expensed marketing fees of $134,117 and $377,814 for the three months and nine months ended June 30, 2011, respectively. Revenues with this customer were $7,785,156 and $25,636,445 for the three months and nine months ended June 30, 2012 , respectively. For the three months and nine months ended June 30, 2011, revenues with this customer were $7,906,409 and $22,464,052, respectively. Trade accounts receivable of $1,376,047 was due from the customer as of June 30, 2012.

The Company has an agreement with an unrelated party to provide the coal supply for the ethanol plant. The agreement expires on January 1, 2013. The agreement is subject to a minimum purchase requirement. For the calendar year 2012 the estimated purchase commitments totals $5,930,400. For the three months and nine months ended June 30, 2012 the Company has purchased $1,512,147 and $5,258,170, respectively, of coal under this contract. For the three months and nine months ended June 30, 2011 is $1,672,384 and $5,041,505, respectively.

The Company has entered into a variable contract with a supplier of denaturant. The variable contract is for a minimum purchase of 180,000 gallons at the average of the OPIS Conway In-Well Natural Gasoline High and Low price plus $.1875/usg. The term of the contract is from July 1, 2012 through September 30, 2012. The minimum future purchase commitment is $346,950.
v2.4.0.6
Risk Management
9 Months Ended
Jun. 30, 2012
Risk Management [Abstract]  
Derivative Instruments and Hedging Activities Disclosure
Risk Management

The Company's activities expose it to a variety of market risks, including the effects of changes in commodity prices.  These financial exposures are monitored and managed by the Company as an integral part of its overall risk management program.  The Company's risk management program focuses on the unpredictability of commodity markets and seeks to reduce the potentially adverse effects that the volatility of these markets may have on its operating results.

The Company maintains a risk management strategy that uses derivative instruments to minimize significant, unanticipated earnings fluctuations caused by market fluctuations.  The Company's specific goal is to protect the Company from large moves in the commodity costs.

To reduce price risk caused by market fluctuations, the Company generally follows a policy of using exchange-traded futures and options contracts to minimize its net position of merchandisable agricultural commodity inventories and forward purchases and sales contracts.  Exchange traded futures and options contracts are designated as non-hedge derivatives and are valued at market price with changes in market price recorded in operating income through cost of goods sold for corn derivatives and through revenue for ethanol derivatives.

The effects on operating income from derivative activities is as follows:

 
Three Months
 
Three Months
 
Nine Months
 
Nine Months
 
Ended
 
Ended
 
Ended
 
Ended
 
June 30, 2012
 
June 30, 2011
 
June 30, 2012
 
June 30, 2011
 
 
 
 
 
 
 
 
Increase (decrease) in revenue due to derivatives related to ethanol sales:
 
 
 
 
 
 
 
Realized
$
(7,308
)
 
$
(288,507
)
 
$
(7,308
)
 
$
(953,648
)
Unrealized
36,842

 
539,847

 

 
262,500

Total effect on revenue
29,534

 
251,340

 
(7,308
)
 
(691,148
)
 
 
 
 

 
 
 
 
(Increase) decrease in cost of goods sold due to derivatives related to corn costs:
 
 
 
 
 
 
 
Realized
1,710,975

 
(1,149,338
)
 
1,955,188

 
(3,062,963
)
Unrealized
(1,849,313
)
 
(1,343,663
)
 
(1,782,463
)
 
(313,250
)
Total effect on cost of goods sold
(138,338
)
 
(2,493,001
)
 
172,725

 
(3,376,213
)
 
 
 
 

 
 
 
 
Total increase (decrease) to operating income due to derivative activities
$
(108,804
)
 
$
(2,241,661
)
 
$
165,417

 
$
(4,067,361
)

Unrealized gains and losses on forward contracts, in which delivery has not occurred, are deemed “normal purchases and normal sales”, and therefore are not marked to market in the Company's financial statements but are subject to a lower of cost or market assessment.
v2.4.0.6
Fair Value Measurements
9 Months Ended
Jun. 30, 2012
Fair Value Measurements [Abstract]  
Fair Value Disclosures
Fair Value Measurements

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.  In determining fair value, the Company uses various methods including market, income and cost approaches.  Based on these approaches, the Company often utilizes certain assumptions that market participants would use in pricing the asset or liability, including assumptions about risk and/or the risks inherent in the inputs to the valuation technique.  These inputs can be readily observable, market-corroborated, or generally unobservable inputs.  The Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs.  Based on the observability of the inputs used in the valuation techniques, the Company is required to provide the following information according to the fair value hierarchy.  The fair value hierarchy ranks the quality and reliability of the information used to determine fair values.  Financial assets and liabilities carried at fair value will be classified and disclosed in one of the following three categories:

Level 1 -
Valuations for assets and liabilities traded in active markets from readily available pricing sources for market transactions involving identical assets or liabilities.
Level 2 -
Valuations for assets and liabilities traded in less active dealer or broker markets. Valuations are obtained from third-party pricing services for identical or similar assets or liabilities.
Level 3 -
Valuations incorporate certain assumptions and projections in determining the fair value assigned to such assets or liabilities.

A description of the valuation methodologies used for instruments measured at fair value, including the general classification of such instruments pursuant to the valuation hierarchy, is set forth below.  These valuation methodologies were applied to all of the Company's financial assets and financial liabilities carried at fair value.
 
Derivative financial instruments:  Commodity futures and exchange-traded commodity options contracts are reported at fair value utilizing Level 1 inputs.  For these contracts, the Company obtains fair value measurements from an independent pricing service.  The fair value measurements consider observable data that may include dealer quotes and live trading levels from the CME and NYMEX markets.  The fair value measurements consider observable data that may include dealer quotes and live trading levels from the over-the-counter markets. 

The following table summarizes the financial liabilities measured at fair value on a recurring basis as of June 30, 2012 and September 30, 2011, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value:

 
 
June 30, 2012
 
 
Total
 
Level 1
 
Level 2
 
Level 3
Liabilities, derivative financial instruments
 
$
1,782,463

 
$
1,782,463

 
$

 
$

 
 
 
 
 
 
 
 
 
 
 
September 30, 2011
 
 
Total

 
Level 1

 
Level 2

 
Level 3

Assets, derivative financial instruments
 
$
292,375

 
$
292,375

 
$

 
$

v2.4.0.6
Contingency
9 Months Ended
Jun. 30, 2012
Contingency [Abstract]  
Legal Matters and Contingencies
Contingency

In May 2010, a lawsuit was filed against the Company and approximately twenty other ethanol plants, design firms and equipment manufacturers by an unrelated party claiming the Company's operation of the corn oil extraction system is infringing at least one patent. The plaintiff seeks injunctive relief, an award of damages with interest and any other remedies available under certain patent statutes or otherwise under law.  The Company is currently defending the lawsuit with legal counsel. and has asserted various defenses including that it does not infringe and, further, that the patents are invalid.  The Company is unable to determine at this time if the lawsuit will have a material adverse affect on the Company.
v2.4.0.6
Sale of Property
9 Months Ended
Jun. 30, 2012
Sale of Property [Abstract]  
Sale of Property [Text Block]
Sale of Property

On October 5, 2011, the Company completed the sale of a land parcel adjacent to its primary site for a sales price of $1,181,000. A gain of $496,098 was recognized for the sale of the property for the nine months ending June 30, 2012.
v2.4.0.6
Revenue by product (Tables)
9 Months Ended
Jun. 30, 2012
Revenue by product [Abstract]  
Revenue from External Customers by Products and Services [Table Text Block]

Components of revenue are as follows:

(Excludes hedging activity)
 
Three Months
 
Three Months
 
Nine months
 
Nine months
 
 
 Ended
 
 Ended
 
Ended
 
Ended
(In thousands)
 
June 30, 2012
 
June 30, 2011
 
June 30, 2012
 
June 30, 2011
Ethanol
 
$
24,437

 
$
32,846

 
$
89,578

 
$
97,282

Distillers' Grains
 
7,785

 
7,906

 
25,636

 
22,464

Other
 
859

 
1,025

 
3,245

 
2,381

v2.4.0.6
Risk Management (Tables)
9 Months Ended
Jun. 30, 2012
Risk Management [Abstract]  
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance [Table Text Block]
The effects on operating income from derivative activities is as follows:

 
Three Months
 
Three Months
 
Nine Months
 
Nine Months
 
Ended
 
Ended
 
Ended
 
Ended
 
June 30, 2012
 
June 30, 2011
 
June 30, 2012
 
June 30, 2011
 
 
 
 
 
 
 
 
Increase (decrease) in revenue due to derivatives related to ethanol sales:
 
 
 
 
 
 
 
Realized
$
(7,308
)
 
$
(288,507
)
 
$
(7,308
)
 
$
(953,648
)
Unrealized
36,842

 
539,847

 

 
262,500

Total effect on revenue
29,534

 
251,340

 
(7,308
)
 
(691,148
)
 
 
 
 

 
 
 
 
(Increase) decrease in cost of goods sold due to derivatives related to corn costs:
 
 
 
 
 
 
 
Realized
1,710,975

 
(1,149,338
)
 
1,955,188

 
(3,062,963
)
Unrealized
(1,849,313
)
 
(1,343,663
)
 
(1,782,463
)
 
(313,250
)
Total effect on cost of goods sold
(138,338
)
 
(2,493,001
)
 
172,725

 
(3,376,213
)
 
 
 
 

 
 
 
 
Total increase (decrease) to operating income due to derivative activities
$
(108,804
)
 
$
(2,241,661
)
 
$
165,417

 
$
(4,067,361
)

Unrealized gains and losses on forward contracts, in which delivery has not occurred, are deemed “normal purchases and normal sales”, and therefore are not marked to market in the Company's financial statements but are subject to a lower of cost or market assessment.
v2.4.0.6
Nature of Business and Significant Accounting Policies (Details)
12 Months Ended
Sep. 30, 2012
gal
Product Information [Line Items]  
Annual ethanol production 50,000,000
v2.4.0.6
Nature of Business and Significant Accounting Policies Trade accounts receivable (Details)
Jun. 30, 2012
D
Trade accounts receivable [Abstract]  
Number of days outstanding for a past due trade receivables 90
v2.4.0.6
Revenue by product (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 9 Months Ended
Jun. 30, 2012
Jun. 30, 2011
Jun. 30, 2012
Jun. 30, 2011
Ethanol [Member]
       
Revenue from External Customer [Line Items]        
Revenue from External Customers $ 24,437 $ 32,846 $ 89,578 $ 97,282
Distillers Grains [Member]
       
Revenue from External Customer [Line Items]        
Revenue from External Customers 7,785 7,906 25,636 22,464
All Other Segments [Member]
       
Revenue from External Customer [Line Items]        
Revenue from External Customers $ 859 $ 1,025 $ 3,245 $ 2,381
v2.4.0.6
Inventories (Details) (USD $)
Jun. 30, 2012
Sep. 30, 2011
Inventories [Abstract]    
Inventory, Raw Materials, Gross $ 3,653,368 $ 3,956,604
Inventory, Work in Process, Gross 1,210,314 1,303,654
Inventory, Finished Goods, Gross 2,345,401 1,090,286
Inventory, Net $ 7,209,083 $ 6,350,544
v2.4.0.6
Long-Term Debt (Details) (USD $)
9 Months Ended
Jun. 30, 2012
Dec. 31, 2011
Sep. 30, 2011
Debt Instrument [Line Items]      
Debt Instrument, Interest Rate Terms 3.30%    
Long-term Construction Loan $ 1,500,000   $ 1,500,000
Line of Credit Facility, Amount Outstanding 225,000   1,000,000
Note payable to contractor 0 1,125,000 1,250,000
Promissory note - IDED 300,000    
Note payable - IDED 0   152,500
Note payable - IDED - monthly payments 2,500    
Note payable - IDED - final payment 152,500    
Railroad revolving loan fund 500,000    
Note payable - IDOT 238,021   287,930
Total Debt 1,963,021   4,190,430
Long-term Debt, Current Maturities (1,525,350)   (1,452,409)
Notes Payable, Noncurrent 437,671   2,738,021
Debt Instrument, Periodic Payment, Principal 1,250,000    
Extinguishment of Debt, Amount 37,500,000    
Line of Credit Facility, Maximum Borrowing Capacity $ 10,000,000    
Debt Instrument, Interest Rate, Stated Percentage 2.11%    
v2.4.0.6
Related-Party Transactions (Details) (USD $)
3 Months Ended 9 Months Ended
Jun. 30, 2012
Jun. 30, 2011
Jun. 30, 2012
Jun. 30, 2011
Related Party Transaction [Line Items]        
Contract settlement fee $ 1,700,000 $ 0 $ 1,700,000 $ 0
Key Coop [Member]
       
Related Party Transaction [Line Items]        
Related Party Transaction, Description of Transaction     100.00%  
Loss on Contract Termination     2,000,000  
Reduction in termination fee     50,000  
Related Party Transaction, Purchases from Related Party 26,049,305 35,466,965 90,508,021 91,196,046
Corn cash contracts 2,357,379   2,357,379  
Purchase Commitment, Remaining Minimum Amount Committed 15,418,343   15,418,343  
Related Party Transaction, Amounts of Transaction 90,427 34,094 134,623 68,570
Accounts Payable, Related Parties, Current 1,150,155   1,150,155  
Contract settlement fee     1,700,000  
Payments for Legal Settlements     425,000  
Innovative Ag Services [Member]
       
Related Party Transaction [Line Items]        
Related Party Transaction, Purchases from Related Party 1,393 580 19,546 15,003
Accounts Payable, Related Parties, Current $ 450   $ 450  
v2.4.0.6
Commitments and Major Customer (Details) (USD $)
3 Months Ended 9 Months Ended
Jun. 30, 2012
Jun. 30, 2011
Jun. 30, 2012
Jun. 30, 2011
Ethanol [Member]
       
Revenue, Major Customer [Line Items]        
Entity-Wide Revenue, Major Customer, Amount $ 24,437,615 $ 32,845,845 $ 89,578,418 $ 97,281,863
Ethanol receivable 4,437,273   4,437,273  
Marketing Expense 148,234 159,529 500,453 518,300
Distillers Grains [Member]
       
Revenue, Major Customer [Line Items]        
Entity-Wide Revenue, Major Customer, Amount 7,785,156 7,906,409 25,636,445 22,464,052
Distillers grains receivable 1,376,047   1,376,047  
Marketing Expense $ 131,250 $ 134,117 $ 431,134 $ 377,814
v2.4.0.6
Commitments and Major Customer Purchase committments (Details) (USD $)
3 Months Ended 9 Months Ended
Jun. 30, 2012
Jun. 30, 2011
Jun. 30, 2012
Jun. 30, 2011
Coal Contract [Member]
       
Long-term Purchase Commitment [Line Items]        
Long-term Purchase Commitment, Amount     $ 5,930,400  
Payments to Suppliers 1,512,147 1,672,384 5,258,170 5,041,505
Denaturant [Member]
       
Long-term Purchase Commitment [Line Items]        
Long-term Purchase Commitment, Amount     $ 346,950  
Long-term Purchase Commitment, Minimum Quantity Required 180,000      
Denaturant price per unit 0.1875      
v2.4.0.6
Risk Management (Details) (USD $)
3 Months Ended 9 Months Ended
Jun. 30, 2012
Jun. 30, 2011
Jun. 30, 2012
Jun. 30, 2011
Trading Activity, Gains and Losses, Net [Line Items]        
Trading Activity, Gains and Losses, Net $ (108,804) $ (2,241,661) $ 165,417 $ (4,067,361)
Sales [Member]
       
Trading Activity, Gains and Losses, Net [Line Items]        
Trading Activity, Gains and Losses, Net 29,534 251,340 (7,308) (691,148)
Cost of Goods, Total [Member]
       
Trading Activity, Gains and Losses, Net [Line Items]        
Trading Activity, Gains and Losses, Net (138,338) (2,493,001) 172,725 (3,376,213)
Gain (Loss) on Settlement of Derivative Instrument [Member] | Sales [Member]
       
Trading Activity, Gains and Losses, Net [Line Items]        
Trading Activity, Gains and Losses, Net (7,308) (288,507) (7,308) (953,648)
Gain (Loss) on Settlement of Derivative Instrument [Member] | Cost of Goods, Total [Member]
       
Trading Activity, Gains and Losses, Net [Line Items]        
Trading Activity, Gains and Losses, Net 1,710,975 (1,149,338) 1,955,188 (3,062,963)
Unrealized Gain (Loss or Write-down) [Member] | Sales [Member]
       
Trading Activity, Gains and Losses, Net [Line Items]        
Trading Activity, Gains and Losses, Net 36,842 539,847 0 262,500
Unrealized Gain (Loss or Write-down) [Member] | Cost of Goods, Total [Member]
       
Trading Activity, Gains and Losses, Net [Line Items]        
Trading Activity, Gains and Losses, Net $ (1,849,313) $ (1,343,663) $ (1,782,463) $ (313,250)
v2.4.0.6
Fair Value Measurements (Details) (USD $)
Jun. 30, 2012
Sep. 30, 2011
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Derivative Liability, Fair Value, Gross Liability $ 1,782,463 $ 0
Derivative Asset, Fair Value, Gross Asset   292,375
Fair Value, Inputs, Level 1 [Member]
   
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Derivative Asset, Fair Value, Gross Asset   292,375
Fair Value, Inputs, Level 2 [Member]
   
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Derivative Liability, Fair Value, Gross Liability 0  
Derivative Asset, Fair Value, Gross Asset   0
Fair Value, Inputs, Level 3 [Member]
   
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Derivative Liability, Fair Value, Gross Liability 0  
Derivative Asset, Fair Value, Gross Asset   $ 0
v2.4.0.6
Sale of Property (Details) (USD $)
9 Months Ended
Jun. 30, 2012
Sale of Property [Abstract]  
Land Sales $ 1,181,000
Gain (Loss) on Sale of Property Plant Equipment $ 496,098