Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer", "smaller reporting company" and "emerging growth company" in Rule 12b-2 of the Exchange Act.

As of August 13,November 12, 2021, we had 64,560 membership units outstanding.

The accompanying unaudited condensed financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted as permitted by such rules and regulations. These financial statements and related notes should be read in conjunction with the financial statements and notes thereto included in the Company's audited financial statements for the year ended December 31, 2020, contained in the Company's annual report on Form 10-K for 2020.

In the opinion of management, the interim condensed financial statements reflect all adjustments considered necessary for fair presentation. The adjustments made to these statements consist only of normal recurring adjustments.

Homeland Energy Solutions, LLC (an Iowa Limited Liability Company) is located near Lawler, Iowa and was organized to pool investors for a 100 million gallon ethanol plant with distribution primarily throughout the United States. The Company has capacity to produce in excess of 190 million gallons annually and sells distillers dried grains and corn oil as byproducts of ethanol production.

Homeland Energy Solutions, LLC is organized as an Iowa limited liability company. The members' liability is limited as specified in Homeland Energy Solutions' operating agreement and pursuant to the Iowa Revised Uniform Limited Liability Company Act.

Management uses estimates and assumptions in preparing these financial statements in accordance with United States Generally Accepted Accounting Principles. Those estimates and assumptions affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities, and the reported revenues and expenses. Actual results could differ from those estimates.

The Company maintains its accounts primarily at one financial institution. At various times, the Company's cash balances may exceed amounts insured by the Federal Deposit Insurance Corporation. The Company has not experienced losses in such accounts. Also included in cash and cash equivalents are highly liquid investments that are readily convertible into known amounts of cash, which are subject to an insignificant risk of change in value due to interest rate, quoted price or penalty on withdrawal and have an original maturity of three months or less.

Credit sales are made primarily to two customers and no collateral is required. The Company carries these accounts receivable at original invoice amount with no allowance for doubtful accounts due to the historical collection rates on these accounts.

The Company has a less than 20% investment interest in Renewable Products Marketing Group, LLC ("RPMG"). This investment is being accounted for under the equity method of accounting, as the Company has significant influence, under which the Company's share of net income is recognized as income in the Company's statement of operations and added to the investment account. The investment balance is included in other assets and the income recognized as other income. The investment is evaluated for indications of impairment on a regular basis. A loss would be recognized when the fair value is determined to be less than the carrying value.

The Company recognizes Revenue from Contracts with Customers following Accounting Standards Update (ASU) 2014-09. Under the ASU, revenue is recognized when a customer obtains control of promised goods or services in an amount that reflects the consideration the Company expects to receive in exchange for those goods or services. In addition, the standard

requires disclosure of the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The Company generally has a single performance obligation in its arrangements with customers. The Company believes for its contracts with customers, control is transferred at a point in time, typically upon delivery to the customers. When the Company performs shipping and handling activities after the transfer of control to the customers (e.g., when control transfers prior to delivery), they are considered as fulfillment activities, and accordingly, the costs are accrued for when the related revenue is recognized. The Company generally expenses sales commissions when incurred because the amortization period would have been less than one year.

The following is a description of principal activities from which we generate revenue. Revenues from contracts with customers are recognized when control of the promised goods or services are transferred to our customers, in an amount that reflects the consideration that we expect to receive in exchange for those goods or services.

All revenue recognized in the statement of operations is considered to be revenue from contracts with customers. The disaggregation of revenue according to product line, along with accounts receivable from contracts with customers, is as disclosed in Note 5.

Shipping costs incurred by the Company in the sale of ethanol and distiller grains are not specifically identifiable and as a result, revenue from the sale of ethanol and distiller grains is recorded based on the net selling price reported to the Company from the marketer. Rail car lease costs incurred by the Company in the sale and shipment of distiller grain products are included in the cost of goods sold.

Inventories are generally valued at the lower of cost (first-in, first-out) or net realizable value.  In the valuation of inventories and purchase commitments, net realizable value is defined as estimated selling price in the ordinary course of business less reasonably predictable costs of completion, disposal, and transportation.

The Company reviews its property and equipment for impairment whenever events indicate that the carrying amount of the asset group may not be recoverable. If circumstances require an asset group be tested for possible impairment, the Company first compares undiscounted cash flows expected to be generated by the asset group to the carrying value of the asset group. If the carrying value of the asset group is not recoverable on an undiscounted cash flow basis, an impairment is recognized to the extent that the carrying value exceeds its fair value. Fair value is determined through various valuation techniques including discounted cash flow models, quoted market values and third-party independent appraisals, as considered necessary.

The Company evaluates its contracts to determine whether the contracts are derivative instruments. Certain contracts that literally meet the definition of a derivative may be exempted from derivative accounting as normal purchases or normal sales. Normal purchases and normal sales are contracts that provide for the purchase or sale of something other than a financial instrument or derivative instrument that will be delivered in quantities expected to be used or sold over a reasonable period in the normal course of business. Contracts that meet the requirements of normal purchases or sales are documented as normal and exempted from the accounting and reporting requirements of derivative accounting.

The Company enters into short-term cash, option and futures contracts as a means of securing purchases of corn, natural gas and sales of ethanol for the plant and managing exposure to changes in commodity and energy prices. All of the Company's derivatives are designated as non-hedge derivatives for accounting purposes, with changes in fair value recognized in net income (loss). Although the contracts are economic hedges of specified risks, they are not designated as and accounted for as hedging instruments.

As part of its trading activity, the Company uses futures and option contracts through regulated commodity exchanges to manage its risk related to pricing of inventories. To reduce that risk, the Company generally takes positions using cash and futures contracts and options.

Realized and unrealized gains and losses related to derivative contracts related to corn and natural gas are included as a component of cost of goods sold and derivative contracts related to ethanol are included as a component of revenue in the accompanying financial statements. The fair values of contracts entered through commodity exchanges are presented on the accompanying balance sheet as derivative instruments. All contracts with the same counter party are reported on a net basis.

Basic and diluted net income (loss) per unit is computed by dividing net income (loss) by the weighted average number of members' units and members' unit equivalents outstanding during the period. There were no member unit equivalents outstanding during the periods presented; accordingly, the Company's basic and diluted net income per unit are the same.

The Company has certain risks and uncertainties that it will experience during volatile market conditions, which can have a severe impact on operations. The Company's revenues are derived from the sale and distribution of ethanol, distiller grains and corn oil to customers primarily located in the United States. Corn for the production process is supplied to the plant primarily from local agricultural producers and from purchases on the open market. For the sixnine months ended JuneSeptember 30, 2021, ethanol sales averaged approximately 75%76% of total revenues, while approximately 19%17% of revenues were generated from the sale of distiller grains. Corn oil sales attributed approximately 6%7% of revenues during this time period. For the sixnine months ended JuneSeptember 30, 2021, corn costs averaged approximately 78%83% of cost of goods sold.

The Company's operating and financial performance is largely driven by the prices at which ethanol is sold and the net expense of corn. The price of ethanol is influenced by factors such as supply and demand, weather, government policies and programs, and unleaded gasoline and the petroleum markets. Excess ethanol supply in the market, in particular, puts downward pressure on the price of ethanol. The Company's largest cost of production is corn. The cost of corn is generally impacted by factors such as supply and demand, weather, and government policies and programs. The Company's risk management program is used to protect against the price volatility of these commodities.

On January 30, 2020, the World Health Organization declared the coronavirus outbreak (COVID-19) a "Public Health Emergency of International Concern" and on March 11, 2020, declared COVID-19 a pandemic. The impact of COVID-19 has negatively impacted the Company’s operations, suppliers or other vendors, and customer base. Any future quarantines, labor shortages or other disruptions to the Company's operations, or those of their customers, may adversely impact the Company's revenues, ability to provide its services and operating results. In addition, a significant outbreak of epidemic, pandemic or contagious diseases in the human population could result in a widespread health crisis that could adversely affect the economies and financial markets of many countries, including the geographical area in which the Company operates, resulting in an economic downturn that could affect demand for its goods and services. The extent to which the coronavirus continues to impact the Company's results will depend on future developments, which are highly uncertain and cannot be predicted, including new information which may emerge concerning the severity of the coronavirus and actions taken to contain the coronavirus or its impact, among others.

On June 29, 2017, the Company amended and restated the Master Loan Agreement with Home Federal Savings Bank ("Home Federal"), amending the term revolving loan to provide funding to operate the plant and establishing a term loan to help fund the Company's $42 million expansion project. In return, the Company entered into agreements providing Home Federal a security interest in substantially all personal property located on Company property. The Company currently has 1 loan2 loans with Home Federal, a term revolving loan.loan and a revolving line of credit.

Under the terms of the Second Amended and Restated Second Supplement to the Master Loan Agreement, dated November 6, 2020, the Company has a $50 million term revolving loan which has a maturity date of November 6, 2025. Interest on the term revolving loan is due monthly and accrues at a rate equal to Prime Rate less 60 basis points, 2.65% on JuneSeptember 30, 2021. There was approximately $15.2 millionno balance outstanding on the term revolving loan and approximately $34.8$50 million available to be drawn as of JuneSeptember 30, 2021 and December 31, 2020.

Under the terms of the Third Amended and Restated Second Supplement to the Master Loan Agreement, dated July 22, 2021, the Company can borrow up to $50 million pursuant to the revolving line of credit. The amount available under the revolving line of credit decreases to $40 million on December 31, 2021 and decreases again to $30 million on May 31, 2022. Interest on the revolving line of credit accrues at a Prime Rate less 30 basis points, 2.95% on September 30, 2021. There is a fee on the unused portion of the revolving loan equal to 0.30%. The maturity date of this revolving loan is November 6, 2025. There was 0 balance outstanding and $50 million availableon the revolving line of credit as of December 31, 2020.September 30, 2021.

During the term of the loans, the Company is subject to certain financial covenants at various times calculated monthly, quarterly or annually, including restriction of the payment of dividends and capital expenditures and maintenance of certain financial ratios including the minimum working capital and a fixed charge ratio as defined by the Master Loan Agreement. Failure to comply with the protective loan covenants or maintain the required financial ratios may cause acceleration of the outstanding principal balances on the loans and/or the imposition of fees, charges or penalties. The Company is in compliance with all financial covenants as of JuneSeptember 30, 2021.

The Company has purchased corn and materials from members of its Board of Directors who own or manage elevators or are local producers of corn. Purchases during the three and sixnine months ended JuneSeptember 30, 2021 totaled approximately $434,000$675,000 and $2,470,000,$3,145,000, respectively and during the three and sixnine months ended JuneSeptember 30, 2020 totaled approximately $509,000$644,000 and $1,171,000,$1,815,000, respectively. Amounts due to these members were NaNapproximately $80,000 and approximately $28,000 at JuneSeptember 30, 2021 and December 31, 2020, respectively.

The Company has entered into a marketing agreement with RPMG to sell all denatured fuel ethanol produced at the plant at a mutually agreed on price, less commission and transportation charges. As of JuneSeptember 30, 2021, the Company had commitments to sell approximately 36 million gallons of ethanol at fixed prices and 4542 million of its produced gallons of ethanol at basis price levels indexed against exchanges for delivery through September 30, 2021.

The Company has entered into a marketing agreement with RPMG to sell all industrial alcohol produced at the plant at a mutually agreed on price, less commission and transportation charges. As of June 30, 2021, the Company had 0 commitments to sell any gallons of industrial alcohol.

The Company also has an investment in RPMG, included in other assets, totaling approximately $2,616,000$2,620,000 and $2,527,000 as of JuneSeptember 30, 2021 and December 31, 2020, respectively.

Sales and marketing fees related to the agreements in place for the three and sixnine months ended JuneSeptember 30, 2021 and 2020 were approximately as follows:

At JuneSeptember 30, 2021, the Company had approximately $56,086,000$31,143,000 in outstanding priced corn purchase commitments for bushels at various prices and approximately 2,507,0003,304,000 bushels of basis contracts through December 2022 accounted for under the normal purchase exclusion.

The Company has commitments for minimum purchases of various utilities such as natural gas and electricity over the next 12 months totaling approximately $516,000$2,928,000 accounted for under the normal purchase exclusion.

As of JuneSeptember 30, 2021, the Company had 0approximately 360,000 decatherms of natural gas locked in at fixed prices.prices through March 2022. As of JuneSeptember 30, 2020, approximately 1,932,000966,000 decatherms of natural gas was locked into place at fixed prices through December 31, 2020 accounted for under the normal purchase exclusion.

A lease exists when a contract conveys to a party the right to control the use of identified property, plant, or equipment for a period of time in exchange for consideration. The Company recognized a lease liability at the lease commencement date, as the present value of future lease payments, using an estimated rate of interest that the Company would pay to borrow equivalent funds on a collateralized basis. A lease asset is recognized based on the lease liability value and adjusted for any prepaid lease

The Company leases rail cars and rail moving equipment with original terms up to 7 years. The Company is obligated to pay costs of insurance, taxes, repairs and maintenance pursuant to the terms of the leases. These costs are in addition to regular lease payments and are not included in lease expense. Rent expense incurred for the operating leases during the three and sixnine months ended JuneSeptember 30, 2021 was approximately $492,000$485,000 and $953,000,$1,438,000, respectively and for the same periods in 2020 was approximately $444,000$442,000 and $888,000,$1,330,000, respectively. The lease agreements have maturity dates ranging from March 2022 to October 2025. The weighted average remaining life of the lease term for these leases was 1.391.14 years as of JuneSeptember 30, 2021.

The discount rate used in determining the lease liability for each individual lease was the Company's estimated incremental borrowing rate of 4.79%. The right-of-use asset operating lease, included in other assets, and operating lease liability, included in current and long term liabilities was approximately $2,307,790$1,895,903 and $3,116,941 as of JuneSeptember 30, 2021 and December 31, 2020, respectively.

At JuneSeptember 30, 2021, the Company had the following approximate minimum rental commitments under non-cancelable operating leases for the twelve month period ended JuneSeptember 30:

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

To reduce price risk caused by market fluctuations, the Company generally follows a policy of using exchange traded futures and options contracts to reduce its net position of merchandisable agricultural commodity inventories and forward cash purchase and sales contracts and uses exchange traded futures and options contracts to reduce price risk. Exchange-traded futures contracts are valued at market price. Changes in market price of exchange traded futures and options contracts related to corn and natural gas are recorded in costs of goods sold and changes in market prices of contracts related to the sale of ethanol, if applicable, are recorded in revenues.

The Company uses futures or options contracts to fix the purchase price of anticipated volumes of corn to be purchased and processed in a future month. The Company's plant will grind approximately 65 million bushels of corn per year.  Over the next twelve months, the Company has hedged and anticipates hedging between 5% and 28% of its anticipated annual grind.  At JuneSeptember 30, 2021, the Company has hedged portions of its anticipated monthly purchases for corn averaging approximately 27%14% of its anticipated monthly grind over the next twelve months.

The following table represents the approximate amount of realized/unrealized gains (losses) and changes in fair value recognized in earnings on commodity contracts for the three and sixnine months ending JuneSeptember 30, 2021 and 2020 and the fair value of derivatives as of JuneSeptember 30, 2021 and December 31, 2020:

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:

The following table summarizes financial assets and financial liabilities measured at fair value on a recurring basis as of JuneSeptember 30, 2021 and December 31, 2020, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value:

The Company's financial assets and liabilities not recorded at fair value, for which carrying value approximates fair value, consists of cash and cash equivalents, accounts receivable, accounts payable, accrued expenses, and term revolver debt.

On July 22,October 20, 2021, the Company entered into an amendmentBoard of Directors declared a $400 per unit distribution for members of record on October 20, 2021 to the revolving debt with Home Federal, creating a new $50 million revolving loanbe paid in addition to existing debt instruments. The agreements Homeland entered into with Home Federal were: (i) a Third Amendment to Amended and Restated Master Loan Agreement (the “Loan Amendment”); (ii) a Third Amended and Restated Second Supplement to Master Loan Agreement (the “Term Loan Amendment”); (iii) a Revolving Promissory Note (the “Promissory Note”); and (iv) a Fifth Amended and Restated Mortgage (the “Amended Mortgage”).

    This report contains forward-looking statements that involve future events, our future performance and our expected future operations and actions. In some cases you can identify forward-looking statements by the use of words such as "may," "will," "should," "anticipate," "believe," "expect," "plan," "future," "intend," "could," "estimate," "predict," "hope," "potential," "continue," or the negative of these terms or other similar expressions. These forward-looking statements are only our predictions and involve numerous assumptions, risks and uncertainties. Our actual results or actions may differ materially from these forward-looking statements for many reasons, including the reasons described in this report or in our Annual Report on Form 10-K for the fiscal year ended December 31, 2020. We are not under any duty to update the forward-looking statements contained in this report. We cannot guarantee future results, levels of activity, performance or achievements. We caution you not to put undue reliance on any forward-looking statements, which speak only as of the date of this report. You should read this report and the documents that we reference in this report and have filed as exhibits, completely and with the understanding that our actual future results may be materially different from what we currently expect. We qualify all of our forward-looking statements by these cautionary statements.

    Homeland Energy Solutions, LLC (referred to herein as "we," "us," the "Company," or "Homeland") is an Iowa limited liability company. Homeland was formed on December 7, 2005 for the purpose of pooling investors for the development, construction and operation of a 100 million gallon per year ethanol plant located near Lawler, Iowa. We began producing ethanol and distiller grains at the plant in April 2009. We completed installation of corn oil extraction equipment and commenced selling corn oil during our fourth quarter of 2011. During our fourth quarter of 2017, we completed a plant expansion project. The ethanol plant is now capable of operating at a rate in excess of 190 million gallons of ethanol per year.

    The following table shows the results of our operations and the percentage of revenues, cost of goods sold, operating expenses and other items to total revenues in our statement of operations for the three months ended JuneSeptember 30, 2021 and 2020:

    Our total revenue for our secondthird quarter of 2021 was approximately 105%72% more than our total revenue for our secondthird quarter of 2020 due primarily to increased average prices for our products.

    For our secondthird quarter of 2021, our total ethanol revenue was approximately 111%70% more than our secondthird quarter of 2020 due to lower average prices we received for our ethanol during the 2020 period, as well as slightlypartially offset by fewer gallons sold in 2020.2021.

    The average price per gallon we received for our ethanol during our secondthird quarter of 2021 was approximately 96%74% more than the average price we received for our ethanol during our secondthird quarter of 2020. Management attributes this increase in the average price we received for our ethanol with higher market gasoline prices, which impacts ethanol prices, during our secondthird quarter of 2021 compared to the same period of 2020. Management believes that the COVID-19 pandemic impacted gasoline demand during the 2020 period. Management anticipates that the impact of the COVID-19 pandemic may continue for the rest of our 2021 fiscal year.

    ��We sold approximately 7% more2% fewer gallons of ethanol during our secondthird quarter of 2021 compared to the same period of 2020. Management attributes this increase to increased travel as people begin to travel more as restrictions on travel duedecrease to the COVID-19 pandemic are relaxing.timing of unit trains at the end of the 2021 quarter.

    

    Our total distiller grains revenue was approximately 82%51% more during our secondthird quarter of 2021 compared to the same period of 2020, primarily due to an increased average price of distiller grains sold, as well asoffset by slightly morefewer dried distiller grains sold. We sold approximately 11% more3% fewer tons of distiller grains during our secondthird quarter of 2021 compared to the same period of 2020 due to reduced productiona partial unit train on hand at the ethanol plant in 2020 during the COVID-19 pandemic.2021 quarter end. We primarily sell our distillers grains in the dried form. The average price we received for our dried distiller grains was approximately 64%56% higher during our secondthird quarter of 2021 compared to the same period of 2020. Management anticipates that distiller grains prices will remain steady during the rest of our 2021 fiscal year due to anticipated stable distiller grains demand.

    Our total corn oil revenue was approximately 110%178% higher for our secondthird quarter of 2021 compared to the same period of 2020 due to an increased average selling price per pound of corn oil during the 2021 period. We sold approximately 13%14% more pounds of corn oil during our secondthird quarter of 2021 compared to the same period of 2020 primarily because of increased corn oil extraction efficiency during the 2021 period. The average price we received for our corn oil was approximately 86%143% higher during our secondthird quarter of 2021 compared to the same period of 2020 due to increased demand in the corn oil market. Management anticipates that corn oil prices will increase slightlyremain elevated for the rest of our 2021 fiscal year since biodiesel production is typically higher during the summer monthsseeing an increase in demand and corn oil is frequently used as the feedstock to produce biodiesel.

    Our total cost of goods sold was approximately 97%70% more for our secondthird quarter of 2021 compared to the same period of 2020. Our cost of goods sold related to corn, without taking into account derivative instruments, was approximately 103%116% more during our secondthird quarter of 2021 compared to our secondthird quarter of 2020 due to higher average corn costs per bushel, along with slightly more bushels of corn ground. We used approximately 9%5% more bushels of corn during our secondthird quarter of 2021 compared to the same period of 2020 due to increased overall production at the ethanol plant. Our average cost per bushel of corn was approximately 87%105% higher during our secondthird quarter of 2021 compared to our secondthird quarter of 2020 due primarily to increased corn demand. Management anticipates that corn costs will remain higher unless current market conditions change and corn demand is lower due to increased corn supply from new crop corn.

    We experienced increased natural gas costs during our secondthird quarter of 2021 compared to the same period of 2020 primarily due to slightly higher average costs per MMBtu of natural gas used, along with slightly increased usage during the 2021 period. During our secondthird quarter of 2021, our average delivered cost per MMBtu of natural gas was approximately 13%71% higher compared to the same period of 2020. In addition, we used approximately 13%6% more MMBtu of natural gas during our secondthird quarter of 2021 compared to our secondthird quarter of 2020 due to increased production at the ethanol plant.

    We engage in risk management activities that are intended to fix the purchase price of the corn and natural gas we require to produce ethanol, distiller grains and corn oil. During our secondthird quarter of 2021, we experienced combined realized and unrealized lossesgains of approximately $14.8$11 million related to our corn and natural gas derivative instruments which increaseddecreased our cost of goods sold. During our secondthird quarter of 2020, we had combined realized and unrealized gainslosses of approximately $350 thousand$741,000 which decreasedincreased our cost of goods sold related to our corn and natural gas derivative instruments. We recognize

    We had less interest expense during our secondthird quarter of 2021 compared to the same period of 2020 due to having less outstanding debt. We had less other income during our secondthird quarter of 2021 compared to the same period of 2020 due to less gains on our equity method investments in the 2021 period.

    The following table shows the results of our operations and the percentage of revenues, cost of goods sold, operating expenses and other items to total revenues in our statement of operations for the sixnine months ended JuneSeptember 30, 2021 and 2020:

    Our total revenue for our sixnine months ended JuneSeptember 30, 2021 was approximately 76%75% more than our total revenue for our sixnine months ended JuneSeptember 30, 2020 due primarily to increased average prices for our products.

    For our sixnine months ended JuneSeptember 30, 2021, our total ethanol revenue was approximately 80%75% more than our sixnine months ended JuneSeptember 30, 2020 due to lower average prices we received for our ethanol during the 2020 period, as well as slightly fewer gallons sold in 2020.

    The average price per gallon we received for our ethanol during our sixnine months ended JuneSeptember 30, 2021 was approximately 70% more than the average price we received for our ethanol during our sixnine months ended JuneSeptember 30, 2020. Management attributes this increase in the average price we received for our ethanol with higher market gasoline prices, which impacts ethanol prices, during our sixnine months ended JuneSeptember 30, 2021 compared to the same period of 2020.

    We sold approximately 5%3% more gallons of ethanol during our sixnine months ended JuneSeptember 30, 2021 compared to the same period of 2020. Management attributes this increase to increased travel as people begin to travel more as restrictions on travel due to the COVID-19 pandemic are relaxing.

    

    Our total distiller grains revenue was approximately 60%57% more during our sixnine months ended JuneSeptember 30, 2021 compared to the same period of 2020, primarily due to an increased average price of distiller grains sold, as well as slightly more dried distiller grains sold. We sold approximately 4%2% more tons of distiller grains during our sixnine months ended JuneSeptember 30, 2021 compared to the same period of 2020 due to reduced production at the ethanol plant in 2020 due to the COVID-19 pandemic.

    Our total corn oil revenue was approximately 88%117% higher for our sixnine months ended JuneSeptember 30, 2021 compared to the same period of 2020 due to an increased average selling price per pound of corn oil during the 2021 period. We sold approximately 7%9% more pounds of corn oil during our sixnine months ended JuneSeptember 30, 2021 compared to the same period of 2020 primarily because of increased corn oil extraction efficiency during the 2021 period. The average price we received for our corn oil was approximately 77%100% higher during our sixnine months ended JuneSeptember 30, 2021 compared to the same period of 2020 due to increased demand in the corn oil market.

    Our total cost of goods sold was approximately 61%63% more for our sixnine months ended JuneSeptember 30, 2021 compared to the same period of 2020. Our cost of goods sold related to corn, without taking into account derivative instruments, was approximately 58%76% more during our sixnine months ended JuneSeptember 30, 2021 compared to our sixnine months ended JuneSeptember 30, 2020 due to higher average corn costs per bushel, along with slightly more bushels of corn ground. We used approximately 2%3% more bushels of corn during our sixnine months ended JuneSeptember 30, 2021 compared to the same period of 2020 due to increased overall production at the ethanol plant. Our average cost per bushel of corn was approximately 54%71% higher during our sixnine months ended JuneSeptember 30, 2021 compared to our sixnine months ended JuneSeptember 30, 2020 due primarily to increased corn demand.

    We experienced increased natural gas costs during our sixnine months ended JuneSeptember 30, 2021 compared to the same period of 2020 primarily due to slightly higher average costs per MMBtu of natural gas used, along with slightly increased usage during the 2021 period. During our sixnine months ended JuneSeptember 30, 2021, our average delivered cost per MMBtu of natural gas was approximately 8%26% higher compared to the same period of 2020. In addition, we used approximately 4%5% more MMBtu of natural gas during our sixnine months ended JuneSeptember 30, 2021 compared to our sixnine months ended JuneSeptember 30, 2020 due to increased production at the ethanol plant.

    We engage in risk management activities that are intended to fix the purchase price of the corn and natural gas we require to produce ethanol, distiller grains and corn oil. During our sixnine months ended JuneSeptember 30, 2021, we experienced combined realized and unrealized losses of approximately $16.2$5.3 million related to our corn and natural gas derivative instruments which increased our cost of goods sold. During our sixnine months ended JuneSeptember 30, 2020, we had combined realized and unrealized gains of approximately $2.9$2.2 million which decreased our cost of goods sold related to our corn and natural gas derivative instruments. We recognize the gains or losses that result from changes in the value of our corn and natural gas derivative instruments in cost of goods sold as the changes occur.

    We had less interest expense during our sixnine months ended JuneSeptember 30, 2021 compared to the same period of 2020 due to having less outstanding debt. We had less other income during our sixnine months ended JuneSeptember 30, 2021 compared to the same period of 2020 due to fewer gains on our equity method investments in the 2021 period primarily due to investments liquidated in 2020.

    Our accounts payable was less at JuneSeptember 30, 2021 compared to December 31, 2020 due primarily to having less deferred corn payments at JuneSeptember 30, 2021. Our accrued expenses were more at JuneSeptember 30, 2021 compared to December 31, 2020 due to lower payroll related liabilities at December 31, 2020.

    Our operations usedprovided more cash during our first sixnine months of 2021 compared to the same period of 2020 due primarily to decreased cash flow fromincreased net income and prepaids offset by changes in accounts receivable, inventory, and accounts payable during the 2021 period, partially offset by net income.period.

    Our investing activities used more cash during the 2021 period because of the lack of sales of trading securities during the 2021 period compared to the 2020 period, partially offset by less cash used for equipment and construction in progress in the 2021 period.

    Our financing activities provided moreno change in cash duringfor the 2021 period because of proceeds from long-term borrowings.period.

    On June 29, 2017, we entered into a new $30 million term loan (the "Term Loan") and increased and extended our existing revolving loan (the "Revolving Loan") with Home Federal Savings Bank ("Home Federal"). The Revolving Loan is described below. On November 6, 2020, we entered into an amendment of our credit facilities. On July 22, 2021, we entered into an amendment to our Revolving Loan with Home Federal, creating a new $50 million revolving loan in addition to our other current debt instruments, (the “Loan Amendment”). The Loan Amendment is described below.

    We have a $50 million term revolving loan which has a maturity date of November 6, 2025. Interest on the Revolving Loan accrues at Prime Rate less 60 basis points. We are required to make monthly payments of interest until the maturity date on November 6, 2025, on which date the unpaid principal balance of the Revolving Loan becomes due. We agreed to pay a fee of 30 basis points on a per annum basis on the unused portion of the Revolving Loan payable on a quarterly basis. As of JuneSeptember 30, 2021, we had approximately $15 millionnothing outstanding on the Revolving Loan and approximately $35$50 million available to be drawn. Interest accrued on the Revolving Loan as of JuneSeptember 30, 2021 at a rate of 2.65% per year.

    In connection with the Master Loan Agreement, we are required to comply with certain debt covenants and financial ratios. We agreed to a debt service coverage ratio of 1:15 to 1:00 and a minimum working capital covenant of $30 million.  We are permitted to pay distributions to our members up to 100% of our net income for the year in which the distributions are paid provided that immediately prior to the distribution and after giving effect to the distribution, no default exists and we are in compliance with all of our loan covenants, including compliance with the financial covenants.  The maximum capital expenditure covenant was increased to $17.5 million in 2020, unless working capital exceeds $40 million, then there is no limit on capital expenditure.

    As of JuneSeptember 30, 2021, we were in compliance with all of our debt covenants and financial ratios. Management anticipates that we will be in compliance with all of our debt covenants and financial ratios for at least the next 12 months.

    Failure to comply with the loan covenants or to maintain the required financial ratios may cause acceleration of any future outstanding principal balances on the loans and/or the imposition of fees, charges or penalties. Any acceleration of the

debt financing or imposition of the fees, charges or penalties may restrict or limit our access to the capital resources necessary to continue plant operations.

    Should we default on any of our obligations pursuant to the Home Federal loans, Home Federal may terminate its commitment to provide us funds and declare any future unpaid principal balance of the loans, plus accrued interest, immediately due and payable. Events of default include the failure to make payments when due, our insolvency, any material adverse change in our financial condition or the breach of any of the covenants, representations or warranties we have made in the loan agreements.

    The Company evaluates its contracts to determine whether the contracts are derivative instruments. Certain contracts that literally meet the definition of a derivative may be exempted from derivative accounting as normal purchases or normal sales. Normal purchases and normal sales are contracts that provide for the purchase or sale of something other than a financial instrument or derivative instrument that will be delivered in quantities expected to be used or sold over a reasonable period in the normal course of business. Contracts that meet the requirements of normal purchases or sales are documented as normal and exempted from the accounting and reporting requirements of derivative accounting.

    The Company enters into short-term cash, option and futures contracts as a means of securing purchases of corn, natural gas and sales of ethanol for the plant and managing exposure to changes in commodity and energy prices. All of the Company's derivatives are designated as non-hedge derivatives for accounting purposes, with changes in fair value recognized in net income. Although the contracts are economic hedges of specified risks, they are not designated as and accounted for as hedging instruments.

    As part of its trading activity, the Company uses futures and option contracts through regulated commodity exchanges to manage its risk related to pricing of inventories. To reduce that risk, the Company generally takes positions using cash and futures contracts and options.

    Realized and unrealized gains and losses related to derivative contracts related to corn and natural gas are included as a component of cost of goods sold and derivative contracts related to ethanol are included as a component of revenues in the accompanying financial statements. The fair values of all contracts with the same counter-party are presented net on the accompanying balance sheet as derivative instruments net of cash due from/to broker.

    Revenue from the sale of the Company's products is recognized at the time control transfer to the customers. This generally occurs upon shipment, loading of the goods or when the customer picks up the goods. Interest income is recognized as earned. Shipping costs incurred by the Company in the sale of ethanol and distiller grains are not specifically identifiable and as a result, revenue from the sale of ethanol and distiller grains is recorded based on the net selling price reported to the Company from the marketer.

    We are exposed to the impact of market fluctuations associated with commodity prices as discussed below. We have no exposure to foreign currency risk as all of our business is conducted in U.S. Dollars. We use derivative financial instruments as part of an overall strategy to manage market risk. We use cash, futures and option contracts to hedge changes to the commodity prices of corn, natural gas and ethanol. We do not enter into these derivative financial instruments for trading or speculative purposes, nor do we designate these contracts as hedges for accounting purposes.

    We seek to minimize the risks from fluctuations in the prices of raw material inputs, such as corn and natural gas, and finished products, such as ethanol and distiller grains, through the use of hedging instruments. In practice, as markets move, we actively manage our risk and adjust hedging strategies as appropriate. Although we believe our hedge positions accomplish an economic hedge against our future purchases and sales, management has chosen not to use hedge accounting, which would match the gain or loss on our hedge positions to the specific commodity purchase being hedged. We are using fair value accounting for our hedge positions, which means as the current market price of our hedge positions changes, the realized or unrealized gains and losses are immediately recognized in our cost of goods sold or as an offset to revenues. The immediate recognition of hedging gains and losses under fair value accounting can cause net income to be volatile from quarter to quarter due to the timing of the change in value of the derivative instruments relative to the cost and use of the commodity being hedged.

    As of JuneSeptember 30, 2021, we had price protection in place for approximately 27%9% of our anticipated corn needs, none7% of our natural gas needs and 1%2% of our ethanol sales for the next 12 months. A sensitivity analysis has been prepared to estimate our exposure to ethanol, corn and natural gas price risk. Market risk related to these factors is estimated as the potential change in income resulting from a hypothetical 10% adverse change in the average cost of our corn and natural gas prices and average ethanol price as of JuneSeptember 30, 2021, net of the forward and future contracts used to hedge our market risk for corn and natural gas usage requirements. The volumes are based on our expected use and sale of these commodities for a one year period from JuneSeptember 30, 2021. The results of this analysis, which may differ from actual results, are as follows:

    We maintain disclosure controls and procedures that are designed to ensure that information required to be disclosed in the reports that we file or submit pursuant to the Securities Exchange Act of 1934 (the "Exchange Act") is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission's rules and forms, and that such information is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow for timely decisions regarding required disclosures.

    Our management, including our Interim President and Chief Executive Officer (the principal executive officer), Aristotelis Papasimakis, and Chief Financial Officer, (the principal financial officer), Beth Eiler, has reviewed and evaluated the effectiveness of our disclosure controls and procedures as of JuneSeptember 30, 2021. Based on this review and evaluation, this officer believesthese officers believe that our

    For the fiscal quarter ended JuneSeptember 30, 2021, there has been no change in our internal control over financial reporting that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

    On August 14, 2013, the Company filed a lawsuit against Steve Retterath in the Iowa state court located in Polk County, Iowa. The purpose of the lawsuit was to enforce the terms of the repurchase agreement the Company executed with Mr. Retterath on June 13, 2013. The Company asked the Iowa state court to require Mr. Retterath to perform his obligations under the repurchase agreement pursuant to its terms. Mr. Retterath removed the case to federal court in the Federal District Court for the Southern District of Iowa in December 2013. The Company believed that this removal was improper and as a result the Company moved to remand the case back to the Iowa state court in Polk County which was granted. Mr. Retterath answered the lawsuit in August 2014, denying the validity of the repurchase agreement. In addition, the Iowa state court permitted Jason Retterath and Annie Retterath, the son and daughter-in-law of Steve Retterath, to be added as parties to the Iowa state lawsuit. In February 2015, the Company filed a motion for summary judgment asking the Iowa state court to enforce the repurchase agreement. The Retteraths also filed motions for summary judgment asking the Iowa state court to find the repurchase agreement invalid. On October 16, 2015, the Iowa state court entered a ruling granting Homeland's motion for summary judgment and determined no membership vote was required as Mr. Retterath has contended. The Iowa state court also denied the summary judgment motions filed by Mr. Retterath and his son and daughter-in-law.

    There have been no material changes to the risk factors previously disclosed in our annual report on Form 10-K for the fiscal year ended December 31, 2020.

    None.

    (a)    The following exhibits are filed as part of this report.