Cover Page Document
Cover Page Document - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Mar. 12, 2021 | Jun. 30, 2020 | |
Document and Entity Information [Abstract] | |||
Document Type | 10-K | ||
Entity File Number | 000-53202 | ||
Entity Registrant Name | HOMELAND ENERGY SOLUTIONS, LLC | ||
Entity Incorporation, State or Country Code | IA | ||
Entity Tax Identification Number | 20-3919356 | ||
Entity Address, Address Line One | 2779 Highway 24 | ||
Entity Address, City or Town | Lawler | ||
Entity Address, State or Province | IA | ||
Entity Address, Postal Zip Code | 52154 | ||
City Area Code | (563) | ||
Local Phone Number | 238-5555 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Public Float | $ 56,803,000 | ||
Entity Common Stock, Shares Outstanding | 64,560 | ||
Entity Central Index Key | 0001366744 | ||
Document Period End Date | --12-31 | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Amendment Flag | false | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | false | ||
Entity Shell Company | false | ||
Entity Voluntary Filers | No | ||
Document Period End Date | Dec. 31, 2020 |
Balance Sheets
Balance Sheets - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
CURRENT ASSETS | ||
Cash and cash equivalents | $ 5,072,227 | $ 17,274,703 |
Trading securities | 0 | 42,508,451 |
Accounts receivable | 4,121,778 | 7,159,632 |
Derivative instruments | 840,857 | 799,484 |
Inventory | 24,459,408 | 15,311,396 |
Prepaid and other | 4,833,883 | 4,119,486 |
Total current assets | 39,328,153 | 87,173,152 |
PROPERTY AND EQUIPMENT | ||
Land and improvements | 23,260,902 | 23,181,342 |
Buildings | 8,777,302 | 8,777,302 |
Equipment | 240,429,826 | 222,979,738 |
Construction in progress | 620,832 | 722,507 |
Gross Property and Equipment | 273,088,862 | 255,660,889 |
Less accumulated depreciation | 144,554,643 | 129,105,903 |
Total property and equipment | 128,534,219 | 126,554,986 |
ROU assets | 3,116,941 | 4,678,365 |
OTHER ASSETS | ||
Utility rights, net of amortization of $1,455,605 and $1,319,217 | 443,260 | 579,643 |
Other assets | 4,116,647 | 3,973,846 |
Total Other Assets | 7,676,848 | 9,231,854 |
TOTAL ASSETS | 175,539,220 | 222,959,992 |
CURRENT LIABILITIES | ||
Accounts payable | 20,836,019 | 14,834,053 |
Due to former member | 0 | 30,000,000 |
Accrued expenses | 1,219,705 | 1,507,195 |
Current maturities of long term debt | 0 | 6,000,000 |
Operating Lease, Liability, Current | 1,637,878 | 1,561,422 |
Total current liabilities | 23,693,602 | 53,902,670 |
COMMITMENTS AND CONTINGENCIES | ||
LONG-TERM LIABILITIES | ||
Term revolving loan | 0 | 11,964,824 |
MEMBERS' EQUITY, (64,585 units issued and outstanding) | 150,366,555 | 153,975,555 |
Operating Lease, Liability, Noncurrent | 1,479,063 | 3,116,943 |
Liabilities, Noncurrent | 1,479,063 | 15,081,767 |
TOTAL LIABILITIES AND MEMBERS' EQUITY | $ 175,539,220 | $ 222,959,992 |
Balance Sheets (Parenthetical)
Balance Sheets (Parenthetical) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Other Assets: | ||
Utility rights, net of amortization | $ 1,864,769 | $ 1,728,386 |
MEMBERS’ EQUITY | ||
Members Capital units issued and outstanding (in shares) | 64,560 | 64,560 |
Statements of Operations
Statements of Operations - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Statements of Operations [Abstract] | |||
Revenue | $ 281,386,439 | $ 329,774,685 | $ 307,400,097 |
Costs of goods sold | 273,607,219 | 307,650,836 | 283,549,201 |
Gross Profit | 7,779,220 | 22,123,849 | 23,850,896 |
Selling, general and administrative expenses | 3,719,110 | 3,885,532 | 3,658,156 |
Operating Income | 4,060,110 | 18,238,317 | 20,192,740 |
OTHER INCOME (EXPENSE) | |||
Interest expense | (591,614) | (902,101) | (1,314,324) |
Interest income | 64,724 | 53,375 | 14,516 |
Other Income | 1,634,105 | 2,087,162 | 873,273 |
Gain (Loss) on Extinguishment of Debt | 907,675 | 0 | 0 |
Total Other Income (Expense) | 2,014,890 | 1,238,436 | (426,535) |
Net Income | $ 6,075,000 | $ 19,476,753 | $ 19,766,205 |
Basic & diluted earnings earnings per unit (in dollars per share) | $ 94 | $ 302 | $ 306 |
Distribution per capital unit (in dollars per unit) | $ 150 | $ 350 | $ 220 |
Weighted average number of units outstanding for the calculation of basic & diluted net income per capital unit (in shares) | 64,560 | 64,560 | 64,576 |
Statement of Members' Equity
Statement of Members' Equity | USD ($) |
Members' Equity at Dec. 31, 2017 | $ 151,600,547 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |
Redemption of 25 Membership Units | (65,000) |
Distributions | (14,206,950) |
Net Income | 19,766,205 |
Members' Equity at Dec. 31, 2018 | 157,094,802 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |
Distributions | (22,596,000) |
Net Income | 19,476,753 |
Members' Equity at Dec. 31, 2019 | 153,975,555 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |
Distributions | (9,684,000) |
Net Income | 6,075,000 |
Members' Equity at Dec. 31, 2020 | $ 150,366,555 |
Statements of Cash Flows
Statements of Cash Flows | 12 Months Ended | ||
Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
CASH FLOWS FROM OPERATING ACTIVITIES | |||
Net Income | $ 6,075,000 | $ 19,476,753 | $ 19,766,205 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 15,975,566 | 15,693,009 | 15,169,546 |
Unrealized loss (gain) on risk management activities | (41,373) | 129,900 | (174,163) |
Realized and unrealized (gain) on trading securities | 28,058 | (1,954,630) | (351,156) |
Loss on disposal of property and equipment | 101,347 | (550) | 0 |
Change in working capital components: | |||
Accounts Receivable | 3,037,854 | 72,089 | (5,971,285) |
Inventory | (9,148,012) | (561,197) | 1,233,735 |
Prepaid expenses and other | (565,306) | (965,629) | (470,208) |
Accounts payable, accrued expenses and other | 4,859,608 | 3,400,401 | 1,539,635 |
Net cash provided by operating activities | 19,415,067 | 35,290,146 | 30,742,309 |
Increase (Decrease) in Marketable Securities, Restricted | 0 | 30,000,000 | 0 |
CASH FLOWS FROM INVESTING ACTIVITIES | |||
Purchase of trading securities | 42,480,393 | 20,000,000 | 0 |
Payments for equipment and construction in progress | (17,061,719) | (8,508,858) | (10,524,217) |
Proceeds from Sale of Machinery and Equipment | 32,000 | 550 | 0 |
Decrease (increase) in other assets | (291,892) | 336,871 | (762,375) |
Net cash (used in) investing activities | 25,158,782 | (18,171,437) | (11,286,592) |
CASH FLOWS FROM FINANCING ACTIVITIES | |||
Distribution to members | (9,684,000) | (22,596,000) | (14,206,950) |
Proceeds from long-term borrowings | 15,000,000 | 0 | 0 |
Repayments of Long-term Lines of Credit | 15,000,000 | 0 | 0 |
Payments for Repurchase of Common Stock | 0 | 0 | 65,000 |
Increase (Decrease) in Due to Related Parties | (30,000,000) | 0 | 0 |
Proceeds from Issuance of Long-term Debt | 907,675 | 0 | 0 |
Payments on long-term borrowings | (18,000,000) | (6,000,000) | (6,000,000) |
Net cash (used in) financing activities | (56,776,325) | (28,596,000) | (20,271,950) |
Net (decrease) in cash | (12,202,476) | (11,477,291) | (816,233) |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 5,072,227 | 17,274,703 | |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION | |||
Cash paid for interest | 556,438 | 888,031 | 1,423,995 |
Establishment of Lease Liability And Right Of Use Asset | 0 | 6,320,411 | 0 |
SUPPLEMENTAL SCHEDULE OF NONCASH INVESTING AND FINANCING ACTIVITIES | |||
Accounts payable related to property and equipment | 1,043,698 | 188,830 | 1,796,079 |
Gain (Loss) on Extinguishment of Debt | $ (907,675) | $ 0 | $ 0 |
Statement of Cash Flows (Parent
Statement of Cash Flows (Parenthetical) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Statement of Cash Flows [Abstract] | |||
Capitalized interest | $ 55,776 | $ 203,690 | $ 74,077 |
Nature of Business and Signific
Nature of Business and Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2020 | |
Nature of Business and Significant Accounting Policies [Abstract] | |
Nature of Business and Significant Accounting Policies | Nature of Business and Significant Accounting Policies Nature of Business 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 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. Organization 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. Significant Accounting Policies : Accounting Estimates 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. Cash and Cash Equivalents 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 any losses in such accounts. Also included in cash and 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 a maturity of three months or less. Trading Securities Investments bought and held principally for the purpose of selling them in the near term are classified as trading securities. Trading securities are measured at fair value using prices obtained from pricing services. Any interest, dividends, and unrealized or realized gains and losses on the trading securities are recorded as part of other income (expense). At December 31, 2020, the Company held no trading securities. At December 31, 2019, trading securities consisted of corporate bonds and short term bond mutual funds with an approximate cost of $42,370,000 and fair value of $42,508,000. For the fiscal years ended December 31, 2020, 2019, and 2018 the Company recorded realized and unrealized gains and (losses) from these investments of approximately $(28,000), $1,955,000, and $351,000 respectively. The Board of Directors voted to set aside up to $30 million in trading securities to be used by the Company for the repurchase of 25,860 membership units held by Steve Retterath per the terms of an agreement with Mr. Retterath entered into on June 13, 2013 with the Company. These trading securities were used in April 2020 to repurchase the 25,860 membership units from Mr. Retterath. Receivables Credit sales are made primarily to two customers and no collateral is required. The Company carries these accounts receivable at face amount with no allowance for doubtful accounts due to the historical collection rates on these accounts. Investments 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 under which the Company's share of net income is recognized as income in the Company's income statement and added to the investment account. 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. Inventories 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. Property and Equipment Property and equipment are stated at cost. Significant additions and betterments are capitalized, while expenditures for maintenance and repairs are charged to operations when incurred. The Company uses the straight-line method of computing depreciation over the estimated useful lives as follows: Estimated Useful Life in Years Minimum Maximum Land Improvements 20 40 Buildings 10 40 Equipment 7 40 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 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, 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 has concluded that no impairment is necessary as of December 31, 2020 and 2019. Derivative Instruments 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 or 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. Utility Rights Utility rights consist of payments to electric and natural gas companies for construction in aid of electric and gas lines to the facility but the Company retains no ownership rights to the assets. The utility rights are amortized on a straight-line basis over 15 years based on the estimate normal usage of such infrastructure. At December 31, 2020, the Company anticipates the following amortization of utility rights for the years ended December 31: 2021 136,000 2022 136,000 2023 136,000 2024 35,000 Total amortization $ 443,000 Revenue and Cost Recognition In the first quarter of 2018, the Company adopted Accounting Standards Update (ASU) 2014-9, Revenue from Contracts with Customers (Topic 606). Under the ASU, revenue is recognized when a customer obtains control of promised goods or services in an amount that reflects the consideration the entity 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 applied the five-step method outlined in the ASU to all contracts with customers and elected the modified retrospective implementation method. 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. • sales of ethanol; • sales of distiller grains; and • sales of corn oil; 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. Income Taxes The Company was formed under sections of the federal and state income tax laws which provide that, in lieu of corporate income taxes, the members separately account for their share of the Company's items of income, deductions, losses and credits. As a result of this election, no income taxes have been recognized in the accompanying financial statements. Management has evaluated the Company's tax positions under the Financial Accounting Standards Board issued guidance on accounting for uncertainty in income taxes and concluded that the Company had taken no uncertain tax positions that require adjustment to the financial statements to comply with the provisions of this guidance. Committed Shares to be Redeemed On June 13, 2013, the Company entered into an agreement with Steve Retterath, the Company's largest member, to repurchase and retire all of the membership units owned by Mr. Retterath. The Company agreed to close on this repurchase on, or before, August 1, 2013. The Company agreed to repurchase and retire 25,860 membership units owned by Mr. Retterath in exchange for $30 million, to be paid in two equal installments, payable at closing and on July 1, 2014. The transaction failed to close by the scheduled date due to objections by Mr. Retterath. Due to all conditions of the agreement being met prior to, or on, August 1, 2013, the Company believes that it has a binding agreement with Mr. Retterath; as such the commitment to repurchase and retire the membership units is reflected in the financial statements as a liability as these shares became mandatorily redeemable on June 13, 2013. No distributions have been paid to Mr. Retterath since the time of the original expected closing date of August 1, 2013. In April 2020, the Company closed the repurchase of the membership units and therefore does not show a liability for the repurchase as of December 31, 2020. See Notes 4 and 10 for additional information. Net Income per Unit Basic and diluted net income per unit is computed by dividing net income 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. 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. Environmental Liabilities The Company's operations are subject to environmental laws and regulations adopted by various governmental authorities in the jurisdiction in which it operates. These laws require the Company to investigate and remediate the effects of the release or disposal of materials at its locations. Accordingly, the Company has adopted policies, practices and procedures in the areas of pollution control, occupational health and the production, handling, storage and use of hazardous materials to prevent material environmental or other damage, and to limit the financial liability which could result from such events. Environmental liabilities are recorded when the Company's liability is probable and the costs can be reasonably estimated. No expense or liability, including asset retirement obligations, for environmental liabilities has been recorded for the years ended December 31, 2020, 2019, or 2018. Fair Value Financial instruments include cash and equivalents, trading securities, accounts receivable, derivative instruments, accounts payable, accrued expenses and long-term debt. The fair value of trading securities and derivative financial instruments is based on quoted market prices (see Note 9). The fair value of other current financial instruments is estimated to approximate carrying value due to the short-term nature of these instruments (Level 3). The fair value of long-term debt is estimated to approximate carrying value due to the short period of time held and the fixed rate approximating available market rates as of year-end (Level 3). Risks and Uncertainties 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 year ended December 31, 2020, ethanol sales averaged approximately 75% of total revenues, while approximately 20% of revenues were generated from the sale of distiller grains and 5% of revenues were generated from the sale of corn oil. For the year ended December 31, 2020, corn costs averaged approximately 40% of cost of goods sold. The Company's operating and financial performance is largely driven by the prices at which it sells ethanol 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. |
Nature of Operations | Nature of Business |
Inventory
Inventory | 12 Months Ended |
Dec. 31, 2020 | |
Inventory [Abstract] | |
Inventory | INVENTORY Inventory consisted of the following as of December 31, 2020 and 2019. 2020 2019 Raw Materials $ 15,909,576 $ 10,757,505 Work in Process 2,923,041 2,617,916 Finished Goods 5,626,791 1,935,975 Totals $ 24,459,408 $ 15,311,396 |
Debt
Debt | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Debt | DEBT Master Loan Agreement with Home Federal Savings Bank 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 one loan with Home Federal, a term revolving loan. Term Revolving Loan 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 the Prime Rate less 60 basis points, 2.65% at December 31, 2020. There was no balance outstanding on the term revolving loan and $50 million available to be drawn as of December 31, 2020. Term Loan Under the terms of the Fourth Supplement to the Master Loan Agreement, dated June 29, 2017, the Company had a $30 million term loan which has a maturity date of December 31, 2022. The Company has no outstanding borrowings on the term loan at December 31, 2020. Interest on the term loan was at a fixed rate of 4.79%. The Company was required to make monthly interest payments beginning July 1, 2017 and bi-annual principal payments of $3 million beginning on June 30, 2018. The long-term portion of the outstanding debt was presented net of unamortized debt issuance costs of $35,176 as of December 31, 2019. Paycheck Protection Program Debt The Company entered into a loan agreement with the Small Business Administration (SBA) through Home Federal Savings Bank on April 7, 2020 for approximately $908,000 as part of the Paycheck Protection Program under Division A, Title I of the Coronavirus Aid, Relief and Economic Security Act (CARES Act). The loan was to mature in April 2022 and has an interest rate of 0.01%. Proceeds of the loan are restricted for use towards payroll costs and other allowable uses such as covered utilities for a 24 week period following the loan under the Paycheck Protection Program Rules. Provisions of the agreement allow for a portion of the loan to be forgiven if certain qualifications are met. In November 2020, the Company received notification from the SBA that all loan proceeds received by the Company were forgiven. As the Company was legally released as the primary obligor, the Company recorded a gain on debt extinguishment in the statements of operations for approximately $908,000. Covenants During the term of the loan, 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 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 debt covenants as of December 31, 2020. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2020 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | RELATED PARTY TRANSACTIONS Due to Former Member On June 13, 2013, the Company entered into an agreement with Steve Retterath, the Company's largest member, to repurchase and retire all of the units owned by Mr. Retterath. The Company agreed to close on this repurchase on or before August 1, 2013. The Company agreed to repurchase and retire 25,860 memberships units owned by Mr. Retterath in exchange for $30 million, to be paid in two equal installments payable at closing and on July 1, 2014. The transaction failed to close by the scheduled date due to objections by Mr. Retterath. The Company believes that it has a binding agreement with Mr. Retterath. On August 14, 2013, the Company filed a lawsuit against Mr. Retterath in Iowa state court to enforce the terms of the repurchase agreements. The Company asked the Iowa court to require Mr. Retterath to complete the repurchase agreement pursuant to its terms. In February 2020, the Iowa Supreme Court ruled that the repurchase agreement was valid and enforceable and ordered Mr. Retterath to close on the unit repurchase. Mr. Retterath's contention was that he was not bound by the agreement. The Company's position is as of the closing date, Mr. Retterath was no longer the equitable owner of any membership units in the Company. As a result, the Company recorded a $30 million current liability related to the amount the Company agreed to pay Mr. Retterath to repurchase his membership units and has correspondingly reduced members' equity on its balance sheet. In April 2020, Mr. Retterath agreed to complete the repurchase and $30 million was paid to Mr. Retterath. Other Matters |
Commitments, Contingencies and
Commitments, Contingencies and Agreements | 12 Months Ended |
Dec. 31, 2020 | |
Commitments, Contingencies and Agreements [Abstract] | |
Commitments and Contingencies and Agreements | COMMITMENTS, CONTINGENCIES AND AGREEMENTS Ethanol, corn oil, and distiller grains marketing agreements and major customers The Company has entered into a marketing agreement with RPMG, a related party, to sell all ethanol produced at the plant at a mutually agreed on price, less commission and transportation charges. As of December 31, 2020, the Company had no commitments to sell any of its produced gallons of ethanol at fixed prices. The Company has also entered into a marketing agreement with RPMG to sell all corn oil produced at the plant at a mutually agreed on price, less marketing fees and transportation charges. As of December 31, 2020, the Company had commitments to sell approximately 5.0 million pounds of corn oil at various fixed and basis price levels indexed against exchanges for delivery throughout the first quarter of 2021. The Company also has an investment in RPMG, LLC, included in other assets, totaling approximately $2,527,000 and $2,422,000 as of December 31, 2020 and 2019. The Company has entered into a marketing agreement to sell all distiller grains produced at the plant to CHS, an unrelated party, at a mutually agreed on price, less commission and transportation charges. The agreement calls for automatic renewal for successive one All above sales commitments are accounted for as normal sales, and accordingly, have not been marked to market. Sales and marketing fees related to the agreements in place for the years ended December 31, 2020, 2019 and 2018 were as follows: 2020 2019 2018 Sales ethanol - RPMG $ 205,900,000 $ 257,312,000 $ 234,222,000 Sales distiller grains 55,669,000 58,555,000 61,034,000 Sales corn oil - RPMG 14,698,000 13,607,000 12,103,000 Marketing fees ethanol - RPMG $ 206,000 $ 243,000 $ 254,000 Marketing fees distiller grains 817,000 879,000 852,000 Marketing fees corn oil - RPMG 101,000 104,000 76,000 2020 2019 Amount due from RPMG $ 1,451,000 $ 4,712,000 Amount due from CHS 2,635,000 2,388,000 At December 31, 2020, the Company had approximately $20,489,000 in outstanding corn purchase commitments for bushels at various prices and approximately 3,244,000 bushels of unpriced corn purchase commitments through September 2022. Additionally, the Company had locked in place approximately 540,000 decatherms of natural gas at fixed prices through February 28, 2021. These contracts are accounted for under the normal purchase exclusion. As of December 31, 2020, the Company had approximately 2,884,000 bushels with approximate market value of $11,208,000 of deferred corn. As of December 31, 2019, the Company had approximately 1,017,000 bushels with approximate market value of $3,821,000 of deferred corn. The Company has commitments for minimum purchases of various utilities such as natural gas and electricity through December, 2021, accounted for under the normal purchase exclusion, which approximated $1,983,000. |
Lease Obligations
Lease Obligations | 12 Months Ended |
Dec. 31, 2020 | |
Lease Obligations [Abstract] | |
Lease Obligations | LEASE OBLIGATIONSEffective January 1, 2019, the Company adopted ASU 2016-02, Leases (Topic 842). The Company elected the option to apply the transition provisions at the adoption date instead of the earliest comparative period presented in the financial statements. The Company elected the short-term lease exception provided for in the standard and therefore only recognized right-of-use assets and lease liabilities for leases with a term greater than one year. The Company elected the package of practical expedients to not re-evaluate existing contracts as containing a lease or the lease classification unless it was not previously assessed against the lease criteria. In addition, the Company did not reassess initial direct costs for any existing leases. 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 payments, initial direct costs, or lease incentive amounts. The lease term at the commencement date includes any renewal options or termination options when it is reasonably certain that the Company will exercise or not exercise those options, respectively. The Company leases rail cars and rail moving equipment with original terms up to seven years. The Company is obligated to pay costs of insurance, taxes, repairs and maintenance pursuant to terms of the leases. Rent expense incurred for the operating leases during the years ended December 31, 2020, 2019 and 2018 was approximately $1,772,000, $1,734,000 and $1,676,000. 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 1.89 years as of December 31, 2020. 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 $3,116,941 and $4,678,365 as of December 31, 2020 and 2019, respectively. At December 31, 2020, the Company had the following approximate minimum rental commitments under non-cancelable operating leases for the years ended December 31: 2021 1,752,000 2022 1,046,000 2023 300,000 2024 109,000 2025 90,000 Total lease commitments $ 3,297,000 A reconciliation of the undiscounted future payments in the schedule above and the lease liability recognized in the balance sheet as of December 31, 2020, is shown below. Undiscounted future payments $ 3,297,000 Discount effect (180,059) $ 3,116,941 |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2020 | |
Employee Benefit Plans [Abstract] | |
Employee Benefit Plans | EMPLOYEE BENEFIT PLANSOn January 1, 2016, the Company adopted a 401k retirement plan which provides retirement savings options for all eligible employees. Previously, the Company utilized a Simple IRA Adoption Agreement to provide retirement savings options for all eligible employees. Employees meeting certain eligibility requirements can participate in the plan. The Company makes a matching contribution based on the participants' eligible wages. For the years ended December 31, 2020, 2019 and 2018, the Company made matching contributions of approximately $183,000, $185,000 and $174,000, respectively. |
Derivative Instruments
Derivative Instruments | 12 Months Ended |
Dec. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | DERIVATIVE INSTRUMENTSThe 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. During the previous period and over the next 12 months, the Company has hedged and anticipates hedging between 5% and 60% of its anticipated monthly grind. At December 31, 2020, the Company has hedged portions of its anticipated monthly purchases for corn averaging approximately 12% of its anticipated monthly grind over the next twelve months. Unrealized gains and losses on non-exchange traded forward contracts are deemed "normal purchases or sales" under authoritative accounting guidance, as amended and, therefore, are not marked to market in the Company's financial statements. The following table represents the approximate amount of realized and unrealized gains (losses) and changes in fair value recognized in earnings on commodity contracts for years ended December 31, 2020, 2019, and 2018 and the fair value of derivatives as of December 31, 2020 and 2019: Income Statement Classification Realized Gain (Loss) Change In Unrealized Gain (Loss) Total Gain (Loss) Derivatives not designated as hedging instruments: Commodity contracts for the year ended December 31, 2020. Revenue $ (1,177,000) $ — $ (1,177,000) Cost of Goods Sold $ 1,783,000 $ (7,325,000) $ (5,542,000) Total $ 606,000 $ (7,325,000) $ (6,719,000) Derivatives not designated as hedging instruments: Commodity contracts for the year ended December 31, 2019. Cost of Goods Sold $ 3,530,000 $ 927,000 $ 4,457,000 Total $ 3,530,000 $ 927,000 $ 4,457,000 Derivatives not designated as hedging instruments: Commodity contracts for the year ended December 31, 2018. Cost of Goods Sold $ 2,957,000 $ (48,000) $ 2,909,000 Total $ 2,957,000 $ (48,000) $ 2,909,000 Balance Sheet Classification December 31, 2020 December 31, 2019 Futures and option contracts In gain position $ — $ 1,126,000 In loss position (6,233,000) (37,000) Cash held by (due to) broker 7,074,000 (290,000) Current Asset $ 841,000 $ 799,000 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | FAIR VALUE MEASUREMENTS 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: Trading securities : Trading securities consisting of corporate bonds and short term bond mutual funds are reported at fair value utilizing Level 1 inputs. Trading securities are measured at fair value using prices obtained from pricing services. 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 CBOT and NYMEX markets. The following table summarizes financial assets and financial liabilities measured at fair value on a recurring basis as of December 31, 2020 and December 31, 2019, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value: Total Level 1 Level 2 Level 3 Trading Securities December 31, 2020 Assets $ — $ — $ — $ — December 31, 2019 Assets $ 42,508,000 $ 42,508,000 $ — $ — Derivative financial instruments December 31, 2020 Liabilities $ (6,233,000) $ (6,233,000) $ — $ — December 31, 2019 Assets $ 1,126,000 $ 1,126,000 $ — $ — Liabilities (37,000) (37,000) — — |
Ligitagion Matters
Ligitagion Matters | 12 Months Ended |
Dec. 31, 2020 | |
Loss Contingency, Information about Litigation Matters [Abstract] | |
Legal matters and Contingencies | LITIGATION MATTERS Retterath In relation to the repurchase agreement discussed in Note 4, on August 1, 2013 Mr. Retterath filed a lawsuit against the Company along with several directors, the Company's former CEO, CFO, COO, a former director and the Company's outside legal counsel in Florida state court. In August 2016, this lawsuit was voluntarily dismissed without prejudice by the Retteraths. On August 14, 2013, the Company filed a lawsuit in Iowa state court to enforce the repurchase agreement the Company entered into with Mr. Retterath. No distributions have been paid to Mr. Retterath since the time of the original expected closing date of August 1, 2013. On June 15, 2017, the Iowa Court ruled in favor of Homeland that the repurchase agreement was valid and directed Mr. Retterath to perform his obligations under the repurchase agreement by August 1, 2017. Mr. Retterath subsequently filed various motions with the Iowa Court and was granted a stay regarding his obligation to perform the repurchase agreement while the court considered his post trial motions. The Iowa Court overruled Mr. Retterath's post trial motions and Mr. Retterath filed an appeal. In February 2020, the Iowa Supreme Court ruled that the repurchase agreement was valid and enforceable. The repurchase closed in April 2020. Now that the first part of the case is resolved, the additional matters Mr. Retterath added to the case in 2016 will be resolved by the court. GS Cleantech Corporation On August 9, 2013, GS Cleantech Corporation (GS Cleantech), a subsidiary of Greenshift Corporation, filed a complaint against the Company alleging that the Company's operation of a corn oil extraction process licensed by the Company infringes patent rights claimed by GS Cleantech. GS Cleantech seeks royalties, damages and potentially triple damages associated with the alleged infringement, as well as attorney's fees from the Company. The Company filed a motion for summary judgment which was granted by the Court. GS Cleantech has appealed this decision. The Company has filed an answer and counterclaims claiming invalidity of the patents, noninfringement, and inequitable conduct. The federal appeals court recently rejected GS Cleantech's appeal and the Supreme Court rejected GS Cleantech's request for a further appeal. |
Quarterly Financial Data (Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Data (Unaudited) | QUARTERLY FINANCIAL DATA (UNAUDITED) Summary quarterly results for the years ended December 31, 2020, 2019 and 2018 are as follows: 2020 First Quarter Second Quarter Third Quarter Fourth Quarter Total Revenues $ 65,037,238 $ 63,862,205 $ 73,396,939 $ 79,090,057 Gross Profit (Loss) (3,927,585) 4,577,977 8,128,255 (999,427) Operating Income (Loss) (4,932,598) 3,746,721 7,150,515 (1,904,528) Net Income (Loss) (5,248,565) 3,961,822 7,256,014 105,729 Basic & diluted earnings (Loss) per unit $ (81) $ 61 $ 112 $ 2 2019 First Quarter Second Quarter Third Quarter Fourth Quarter Total Revenues $ 82,074,397 $ 84,860,557 $ 76,896,475 $ 85,628,405 Gross Profit 5,567,871 4,600,109 4,527,443 7,428,426 Operating Income 4,402,367 3,621,216 3,801,180 6,413,554 Net Income 4,719,055 4,259,845 3,990,592 6,507,261 Basic & diluted earnings per unit $ 73 $ 66 $ 62 $ 101 2018 First Quarter Second Quarter Third Quarter Fourth Quarter Total Revenues $ 76,622,447 $ 84,188,461 $ 77,391,884 $ 69,197,305 Gross Profit 5,926,327 12,090,427 7,436,293 (1,602,151) Operating Income (Loss) 5,181,254 10,987,670 6,540,911 (2,517,095) Net Income (Loss) 5,072,754 10,700,036 6,404,067 (2,410,652) Basic & diluted earnings (loss) per unit $ 79 $ 166 $ 99 $ (38) |
Group Insurance
Group Insurance | 12 Months Ended |
Dec. 31, 2020 | |
Group Insurance [Abstract] | |
Group Insurance | GROUP INSURANCEThe Company participates, along with other plants in the industry, in a group captive insurance company (Captive). The Captive insures losses related to workman's compensation, commercial property and general liability. The Captive reinsures catastrophic losses for all participants, including the Company, in excess of predetermined amounts. The Company's premiums are accrued by a charge to income for the period to which the premium relates and is remitted by the Company's insurer to the captive reinsurer. These premiums are structured such that the Company has made a prepaid collateral deposit estimated for losses related to the above coverage. The Captive insurer has estimated and collected an amount in excess of the estimated losses but less than the catastrophic loss limit insured by the Captive. The Company cannot be assessed over the amount in the collateral fund. |
Nature of Business and Signif_2
Nature of Business and Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Nature of Business and Significant Accounting Policies [Abstract] | |
Accounting Estimates | Accounting EstimatesManagement 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. |
Cash and Cash Equivalents | Cash and Cash Equivalents 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 any losses in such accounts. Also included in cash and 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 a maturity of three months or less. |
Trading Securities | Trading Securities Investments bought and held principally for the purpose of selling them in the near term are classified as trading securities. Trading securities are measured at fair value using prices obtained from pricing services. Any interest, dividends, and unrealized or realized gains and losses on the trading securities are recorded as part of other income (expense). At December 31, 2020, the Company held no trading securities. At December 31, 2019, trading securities consisted of corporate bonds and short term bond mutual funds with an approximate cost of $42,370,000 and fair value of $42,508,000. For the fiscal years ended December 31, 2020, 2019, and 2018 the Company recorded realized and unrealized gains and (losses) from these investments of approximately $(28,000), $1,955,000, and $351,000 respectively. The Board of Directors voted to set aside up to $30 million in trading securities to be used by the Company for the repurchase of 25,860 membership units held by Steve Retterath per the terms of an agreement with Mr. Retterath entered into on June 13, 2013 with the Company. These trading securities were used in April 2020 to repurchase the 25,860 membership units from Mr. Retterath. |
Receivables | Receivables Credit sales are made primarily to two customers and no collateral is required. The Company carries these accounts receivable at face amount with no allowance for doubtful accounts due to the historical collection rates on these accounts. |
Investments | Investments 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 under which the Company's share of net income is recognized as income in the Company's income statement and added to the investment account. 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. |
Inventories | Inventories 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. |
Property and Equipment | Property and Equipment Property and equipment are stated at cost. Significant additions and betterments are capitalized, while expenditures for maintenance and repairs are charged to operations when incurred. The Company uses the straight-line method of computing depreciation over the estimated useful lives as follows: Estimated Useful Life in Years Minimum Maximum Land Improvements 20 40 Buildings 10 40 Equipment 7 40 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 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, 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 has concluded that no impairment is necessary as of December 31, 2020 and 2019. |
Derivative Instruments | Derivative Instruments 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 or 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. |
Utility Rights | Utility Rights Utility rights consist of payments to electric and natural gas companies for construction in aid of electric and gas lines to the facility but the Company retains no ownership rights to the assets. The utility rights are amortized on a straight-line basis over 15 years based on the estimate normal usage of such infrastructure. At December 31, 2020, the Company anticipates the following amortization of utility rights for the years ended December 31: 2021 136,000 2022 136,000 2023 136,000 2024 35,000 Total amortization $ 443,000 |
Revenue Recognition | Revenue and Cost Recognition In the first quarter of 2018, the Company adopted Accounting Standards Update (ASU) 2014-9, Revenue from Contracts with Customers (Topic 606). Under the ASU, revenue is recognized when a customer obtains control of promised goods or services in an amount that reflects the consideration the entity 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 applied the five-step method outlined in the ASU to all contracts with customers and elected the modified retrospective implementation method. 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. • sales of ethanol; • sales of distiller grains; and • sales of corn oil; 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. |
Income Taxes | Income Taxes The Company was formed under sections of the federal and state income tax laws which provide that, in lieu of corporate income taxes, the members separately account for their share of the Company's items of income, deductions, losses and credits. As a result of this election, no income taxes have been recognized in the accompanying financial statements. |
Committed Shares to be Redeemed | Committed Shares to be Redeemed On June 13, 2013, the Company entered into an agreement with Steve Retterath, the Company's largest member, to repurchase and retire all of the membership units owned by Mr. Retterath. The Company agreed to close on this repurchase on, or before, August 1, 2013. The Company agreed to repurchase and retire 25,860 membership units owned by Mr. Retterath in exchange for $30 million, to be paid in two equal installments, payable at closing and on July 1, 2014. The transaction failed to close by the scheduled date due to objections by Mr. Retterath. Due to all conditions of the agreement being met prior to, or on, August 1, 2013, the Company believes that it has a binding agreement with Mr. Retterath; as such the commitment to repurchase and retire the membership units is reflected in the financial statements as a liability as these shares became mandatorily redeemable on June 13, 2013. No distributions have been paid to Mr. Retterath since the time of the original expected closing date of August 1, 2013. In April 2020, the Company closed the repurchase of the membership units and therefore does not show a liability for the repurchase as of December 31, 2020. See Notes 4 and 10 for additional information. |
Net Income per Unit | Net Income per Unit Basic and diluted net income per unit is computed by dividing net income 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. |
Operating Segment | Operating Segment The Company uses the "management approach" for reporting information about segments in annual and interim financial statements. The management approach is based on the way the chief operating decision-maker organizes segments within a company for making operating decisions and assessing performance. Reportable segments are based on products and services, geography, legal structure, management structure and any other manner in which management disaggregates a company. Based on the "management approach" model, the Company has determined that its business is comprised of a single operating segment. |
Environmental Liabilities | Environmental Liabilities The Company's operations are subject to environmental laws and regulations adopted by various governmental authorities in the jurisdiction in which it operates. These laws require the Company to investigate and remediate the effects of the release or disposal of materials at its locations. Accordingly, the Company has adopted policies, practices and procedures in the areas of pollution control, occupational health and the production, handling, storage and use of hazardous materials to prevent material environmental or other damage, and to limit the financial liability which could result from such events. Environmental liabilities are recorded when the Company's liability is probable and the costs can be reasonably estimated. No expense or liability, including asset retirement obligations, for environmental liabilities has been recorded for the years ended December 31, 2020, 2019, or 2018. |
Fair Value of Financial Instruments, Policy | Fair Value Financial instruments include cash and equivalents, trading securities, accounts receivable, derivative instruments, accounts payable, accrued expenses and long-term debt. The fair value of trading securities and derivative financial instruments is based on quoted market prices (see Note 9). The fair value of other current financial instruments is estimated to approximate carrying value due to the short-term nature of these instruments (Level 3). The fair value of long-term debt is estimated to approximate carrying value due to the short period of time held and the fixed rate approximating available market rates as of year-end (Level 3). |
Risks and Uncertainties | Risks and Uncertainties 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 year ended December 31, 2020, ethanol sales averaged approximately 75% of total revenues, while approximately 20% of revenues were generated from the sale of distiller grains and 5% of revenues were generated from the sale of corn oil. For the year ended December 31, 2020, corn costs averaged approximately 40% of cost of goods sold. The Company's operating and financial performance is largely driven by the prices at which it sells ethanol 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. |
Nature of Business and Signif_3
Nature of Business and Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Nature of Business and Significant Accounting Policies [Abstract] | |
Property, Plant and Equipment | The Company uses the straight-line method of computing depreciation over the estimated useful lives as follows: Estimated Useful Life in Years Minimum Maximum Land Improvements 20 40 Buildings 10 40 Equipment 7 40 |
Amortization of Loan Fees and Utility Rights | At December 31, 2020, the Company anticipates the following amortization of utility rights for the years ended December 31: 2021 136,000 2022 136,000 2023 136,000 2024 35,000 Total amortization $ 443,000 |
Inventory (Tables)
Inventory (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Inventory [Abstract] | |
Schedule of Inventory | Inventory consisted of the following as of December 31, 2020 and 2019. 2020 2019 Raw Materials $ 15,909,576 $ 10,757,505 Work in Process 2,923,041 2,617,916 Finished Goods 5,626,791 1,935,975 Totals $ 24,459,408 $ 15,311,396 |
Commitments, Contingencies an_2
Commitments, Contingencies and Agreements (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Commitments, Contingencies and Agreements [Abstract] | |
Schedule of Related Party Transactions | Sales and marketing fees related to the agreements in place for the years ended December 31, 2020, 2019 and 2018 were as follows: 2020 2019 2018 Sales ethanol - RPMG $ 205,900,000 $ 257,312,000 $ 234,222,000 Sales distiller grains 55,669,000 58,555,000 61,034,000 Sales corn oil - RPMG 14,698,000 13,607,000 12,103,000 Marketing fees ethanol - RPMG $ 206,000 $ 243,000 $ 254,000 Marketing fees distiller grains 817,000 879,000 852,000 Marketing fees corn oil - RPMG 101,000 104,000 76,000 2020 2019 Amount due from RPMG $ 1,451,000 $ 4,712,000 Amount due from CHS 2,635,000 2,388,000 |
Lease Obligations (Tables)
Lease Obligations (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Lease Obligations [Abstract] | |
Operating Leases Minimum Rental Commitments | At December 31, 2020, the Company had the following approximate minimum rental commitments under non-cancelable operating leases for the years ended December 31: 2021 1,752,000 2022 1,046,000 2023 300,000 2024 109,000 2025 90,000 Total lease commitments $ 3,297,000 A reconciliation of the undiscounted future payments in the schedule above and the lease liability recognized in the balance sheet as of December 31, 2020, is shown below. Undiscounted future payments $ 3,297,000 Discount effect (180,059) $ 3,116,941 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Other Derivatives Not Designated as Hedging Instruments, Income Statement Classification | The following table represents the approximate amount of realized and unrealized gains (losses) and changes in fair value recognized in earnings on commodity contracts for years ended December 31, 2020, 2019, and 2018 and the fair value of derivatives as of December 31, 2020 and 2019: Income Statement Classification Realized Gain (Loss) Change In Unrealized Gain (Loss) Total Gain (Loss) Derivatives not designated as hedging instruments: Commodity contracts for the year ended December 31, 2020. Revenue $ (1,177,000) $ — $ (1,177,000) Cost of Goods Sold $ 1,783,000 $ (7,325,000) $ (5,542,000) Total $ 606,000 $ (7,325,000) $ (6,719,000) Derivatives not designated as hedging instruments: Commodity contracts for the year ended December 31, 2019. Cost of Goods Sold $ 3,530,000 $ 927,000 $ 4,457,000 Total $ 3,530,000 $ 927,000 $ 4,457,000 Derivatives not designated as hedging instruments: Commodity contracts for the year ended December 31, 2018. Cost of Goods Sold $ 2,957,000 $ (48,000) $ 2,909,000 Total $ 2,957,000 $ (48,000) $ 2,909,000 |
Schedule of Fair Value of Derivatives Instruments, Balance Sheet | Balance Sheet Classification December 31, 2020 December 31, 2019 Futures and option contracts In gain position $ — $ 1,126,000 In loss position (6,233,000) (37,000) Cash held by (due to) broker 7,074,000 (290,000) Current Asset $ 841,000 $ 799,000 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The following table summarizes financial assets and financial liabilities measured at fair value on a recurring basis as of December 31, 2020 and December 31, 2019, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value: Total Level 1 Level 2 Level 3 Trading Securities December 31, 2020 Assets $ — $ — $ — $ — December 31, 2019 Assets $ 42,508,000 $ 42,508,000 $ — $ — Derivative financial instruments December 31, 2020 Liabilities $ (6,233,000) $ (6,233,000) $ — $ — December 31, 2019 Assets $ 1,126,000 $ 1,126,000 $ — $ — Liabilities (37,000) (37,000) — — |
Quarterly Financial Data (Una_2
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information | Summary quarterly results for the years ended December 31, 2020, 2019 and 2018 are as follows: 2020 First Quarter Second Quarter Third Quarter Fourth Quarter Total Revenues $ 65,037,238 $ 63,862,205 $ 73,396,939 $ 79,090,057 Gross Profit (Loss) (3,927,585) 4,577,977 8,128,255 (999,427) Operating Income (Loss) (4,932,598) 3,746,721 7,150,515 (1,904,528) Net Income (Loss) (5,248,565) 3,961,822 7,256,014 105,729 Basic & diluted earnings (Loss) per unit $ (81) $ 61 $ 112 $ 2 2019 First Quarter Second Quarter Third Quarter Fourth Quarter Total Revenues $ 82,074,397 $ 84,860,557 $ 76,896,475 $ 85,628,405 Gross Profit 5,567,871 4,600,109 4,527,443 7,428,426 Operating Income 4,402,367 3,621,216 3,801,180 6,413,554 Net Income 4,719,055 4,259,845 3,990,592 6,507,261 Basic & diluted earnings per unit $ 73 $ 66 $ 62 $ 101 2018 First Quarter Second Quarter Third Quarter Fourth Quarter Total Revenues $ 76,622,447 $ 84,188,461 $ 77,391,884 $ 69,197,305 Gross Profit 5,926,327 12,090,427 7,436,293 (1,602,151) Operating Income (Loss) 5,181,254 10,987,670 6,540,911 (2,517,095) Net Income (Loss) 5,072,754 10,700,036 6,404,067 (2,410,652) Basic & diluted earnings (loss) per unit $ 79 $ 166 $ 99 $ (38) |
Nature of Business and Signif_4
Nature of Business and Significant Accounting Policies Product (Details) - Ethanol [Member] gal in Millions | 12 Months Ended |
Dec. 31, 2020gal | |
Product Information [Line Items] | |
Annual Production Capacity, Minimum | 100 |
Annual Production Capacity, Current | 190 |
Nature of Business and Signif_5
Nature of Business and Significant Accounting Policies Trading Securities (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Debt and Equity Securities, FV-NI [Line Items] | |||
Trading Securities, Cost | $ 42,370,000 | ||
Trading securities | $ 0 | 42,508,451 | |
Realized and unrealized (gain) on trading securities | (28,058) | $ 1,954,630 | $ 351,156 |
Partners' Capital Account, Units, Redeemed (in units) | 25,860 | 25,860 | |
Other Nonoperating Income (Expense) [Member] | |||
Debt and Equity Securities, FV-NI [Line Items] | |||
Realized and unrealized (gain) on trading securities | (28,000) | $ 1,955,000 | $ 351,000 |
Fair Value, Measurements, Recurring [Member] | |||
Debt and Equity Securities, FV-NI [Line Items] | |||
Trading securities | $ 0 | $ 42,508,000 |
Property, Plant and Equipment (
Property, Plant and Equipment (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Property, Plant and Equipment [Line Items] | ||
Tangible Asset Impairment Charges | $ 0 | $ 0 |
Land Improvements [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Estimated Useful Lives | 20 years | |
Land Improvements [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Estimated Useful Lives | 40 years | |
Building [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Estimated Useful Lives | 10 years | |
Building [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Estimated Useful Lives | 40 years | |
Equipment [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Estimated Useful Lives | 7 years | |
Equipment [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Estimated Useful Lives | 40 years |
Amortization of Loan Fees and U
Amortization of Loan Fees and Utility Rights (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Amortization of financing costs and utility rights, future minimum payments, due in one year | $ 136 |
Amoritzation of financing costs and utility rights, future minimum payments, due in 2018 | 136 |
Amoritzation of financing costs and utility rights, future minimum payments, due in 2019 | 136 |
Amoritzation of financing costs and utility rights, future minimum payments, due in 2020 | 35 |
Amortization of Financing Costs | $ 443 |
Committed Shares to be Redeemed
Committed Shares to be Redeemed (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2020 | Dec. 31, 2017 | |
Accounting Policies [Abstract] | ||||
Partners' Capital Account, Units, Redeemed (in units) | 25,860 | 25,860 | ||
Related Party Transaction [Line Items] | ||||
Due to former member | $ 30,000,000 | $ 0 | ||
Director [Member] | ||||
Related Party Transaction [Line Items] | ||||
Due to former member | $ 30,000,000 | $ 30,000,000 | $ 30,000,000 |
Risk and Uncertainties (Details
Risk and Uncertainties (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Sales Revenue, Segment [Member] | Ethanol [Member] | |
Concentration Risk [Line Items] | |
Concentration Risk, Percentage | 75.00% |
Sales Revenue, Segment [Member] | Distillers Grains [Member] | |
Concentration Risk [Line Items] | |
Concentration Risk, Percentage | 20.00% |
Sales Revenue, Segment [Member] | Corn Oil [Member] | |
Concentration Risk [Line Items] | |
Concentration Risk, Percentage | 5.00% |
Cost of Goods, Segment [Member] | Corn [Member] | |
Concentration Risk [Line Items] | |
Concentration Risk, Percentage | 40.00% |
Nature of Business and Signif_6
Nature of Business and Significant Accounting Policies Investments (Details) | Dec. 31, 2020 |
Renewable Products Marketing Group, LLC [Member] | |
Schedule of Equity Method Investments [Line Items] | |
Equity Method Investment, Ownership Percentage | 20.00% |
Nature of Business and Signif_7
Nature of Business and Significant Accounting Policies Environmental Liabilities (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Accounting Policies [Abstract] | |||
Environmental Expense and Liabilities | $ 0 | $ 0 | $ 0 |
Inventory (Details)
Inventory (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Inventory [Abstract] | ||
Raw Materials | $ 15,909,576 | $ 10,757,505 |
Work in Process | 2,923,041 | 2,617,916 |
Finished Goods | 5,626,791 | 1,935,975 |
Inventory | $ 24,459,408 | $ 15,311,396 |
Debt (Details)
Debt (Details) | 12 Months Ended | |||
Dec. 31, 2020USD ($)loan_agreement | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Apr. 07, 2020USD ($) | |
Debt Instrument [Line Items] | ||||
Estimated expansion project costs | $ 42,000,000 | |||
Gain (Loss) on Extinguishment of Debt | 907,675 | $ 0 | $ 0 | |
Small Business Administration | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Face Amount | $ 908,000 | |||
Debt Instrument, Interest Rate, Stated Percentage | 1.00% | |||
Gain (Loss) on Extinguishment of Debt | $ 908,000 | |||
Home Federal Savings Bank [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Number Of Loan Agreements | loan_agreement | 1 | |||
Line of Credit [Member] | Home Federal Savings Bank [Member] | Term Revolving Loan [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Basis Spread on Variable Rate | 0.60% | |||
Line of Credit Facility, Maximum Borrowing Capacity | $ 50,000,000 | |||
Line of Credit Facility, Interest Rate at Period End | 2.65% | |||
Line of Credit Facility, Average Outstanding Amount | $ 0 | |||
Line of Credit Facility, Remaining Borrowing Capacity | 50,000,000 | |||
Line of Credit [Member] | Home Federal Savings Bank [Member] | Term Loan [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt, Fair Value | $ 30,000,000 | |||
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate | 4.79% | |||
Debt Instrument, Periodic Payment, Principal | $ 3,000,000 | |||
Long-term Debt | $ 0 | |||
Unamortized Debt Issuance Expense | $ 35,176 |
Related Party Transactions (Det
Related Party Transactions (Details) | 12 Months Ended | |||
Dec. 31, 2020USD ($)installmentshares | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Related Party Transaction [Line Items] | ||||
Stock Repurchased and Retired During Period, Shares | shares | 25,860 | |||
Due to former member | $ 0 | $ 30,000,000 | ||
Increase (Decrease) in Due to Related Parties | (30,000,000) | 0 | $ 0 | |
Director [Member] | ||||
Related Party Transaction [Line Items] | ||||
Due to former member | $ 30,000,000 | 30,000,000 | $ 30,000,000 | |
Number of installments | installment | 2 | |||
Purchases from Related Party | $ 2,282,000 | 3,113,000 | ||
Commitment to redeem membership units | 28,078 | $ 3,540 | ||
Increase (Decrease) in Due to Related Parties | $ 30 |
Supply Commitments (Details)
Supply Commitments (Details) tons in Thousands | 12 Months Ended |
Dec. 31, 2020USD ($)lbtons | |
Supply Commitment [Line Items] | |
Supply Commitment, Renewal Period | 1 year |
Supply Commitment, Agreement Termination, Notice Period | 90 days |
Ethanol [Member] | Supply Commitment [Member] | |
Supply Commitment [Line Items] | |
Supply Commitment, Remaining Minimum Amount Committed | $ | $ 0 |
Corn Oil [Member] | Supply Commitment [Member] | |
Supply Commitment [Line Items] | |
Supply Commitment, Remaining Minimum Amount Committed, Weight | lb | 5,000,000 |
Distillers Grains [Member] | Supply Commitment [Member] | |
Supply Commitment [Line Items] | |
Supply Commitment, Remaining Minimum Amount Committed, Weight | tons | 58 |
Related Party (Details)
Related Party (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Investor [Member] | |||
Related Party Transaction [Line Items] | |||
Equity Method Investments | $ 2,527,000 | $ 2,422,000 | |
Ethanol [Member] | Investor [Member] | |||
Related Party Transaction [Line Items] | |||
Sales | 205,900,000 | 257,312,000 | $ 234,222,000 |
Marketing Fees | 206,000 | 243,000 | 254,000 |
Ethanol [Member] | RPMG [Member] | |||
Related Party Transaction [Line Items] | |||
Related Party Transaction, Due from (to) Related Party | 1,451,000 | 4,712,000 | |
Distillers Grains [Member] | CHS [Member] | |||
Related Party Transaction [Line Items] | |||
Related Party Transaction, Due from (to) Related Party | 2,635,000 | 2,388,000 | |
Distillers Grains [Member] | Unrelated Party [Member] | |||
Related Party Transaction [Line Items] | |||
Sales | 55,669,000 | 58,555,000 | 61,034,000 |
Marketing Fees | 817,000 | 879,000 | 852,000 |
Corn Oil [Member] | Investor [Member] | |||
Related Party Transaction [Line Items] | |||
Sales | 14,698,000 | 13,607,000 | 12,103,000 |
Marketing Fees | $ 101,000 | $ 104,000 | $ 76,000 |
Purchase Commitments (Details)
Purchase Commitments (Details) | 12 Months Ended | |
Dec. 31, 2020USD ($)MMBTUbu | Dec. 31, 2019USD ($)bu | |
Long-term Purchase Commitment [Line Items] | ||
Derivative, Nonmonetary Notional Amount, Volume | bu | 1,017,000 | |
Commodity Contract Asset, Current | $ 3,821,000 | |
Corn [Member] | ||
Long-term Purchase Commitment [Line Items] | ||
Long-term Purchase Commitment, Amount | $ 20,489,000 | |
Long-term Purchase Commitment, Minimum Mass Required | bu | 3,244,000 | |
Derivative, Nonmonetary Notional Amount, Volume | bu | 2,884,000 | |
Commodity Contract Asset, Current | $ 11,208,000 | |
Natural Gas [Member] | ||
Long-term Purchase Commitment [Line Items] | ||
Long-term Purchase Commitment, Minimum Energy Volume Required | MMBTU | 540,000 | |
Natural Gas and Electricity [Member] | ||
Long-term Purchase Commitment [Line Items] | ||
Long-term Purchase Commitment, Amount | $ 1,983,000 |
Lease Obligations (Details)
Lease Obligations (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Operating Leased Assets [Line Items] | |||
Lease term | 7 years | ||
Operating Lease, Weighted Average Remaining Lease Term | 1 year 10 months 20 days | ||
Operating Lease, Weighted Average Discount Rate, Percent | 4.79% | ||
ROU assets | $ 3,116,941 | $ 4,678,365 | |
Lessee, Operating Lease, Liability, Payments, Due | 3,297,000 | ||
Lessee, Operating Lease, Liability, Undiscounted Excess Amount | 180,059 | ||
Railroad Transportation Equipment [Member] | |||
Operating Leased Assets [Line Items] | |||
Operating Leases, Rent Expense | 1,772,000 | $ 1,734,000 | $ 1,676,000 |
Operating Leases, Future Minimum Payments Due, Next Twelve Months | 1,752,000 | ||
Operating Leases, Future Minimum Payments, Due in Two Years | 1,046,000 | ||
Operating Leases, Future Minimum Payments, Due in Three Years | 300,000 | ||
Operating Leases, Future Minimum Payments, Due in Four Years | 109,000 | ||
Operating Leases, Future Minimum Payments, Due in Five Years | 90,000 | ||
Operating Leases, Future Minimum Payments Due | $ 3,297,000 |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Employee Benefit Plans [Abstract] | |||
Employer contributions | $ 183,000 | $ 185,000 | $ 174,000 |
Derivative Instruments - Additi
Derivative Instruments - Additional Information (Details) - bu | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount, Volume | 1,017,000 | |
Commodity Contract [Member] | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount, Volume | 65,000,000 | |
Designated as Hedging Instrument [Member] | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount, Percent of Required Need, Coverage | 12.00% | |
Designated as Hedging Instrument [Member] | Minimum [Member] | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount, Percent of Required Need, Yearly Average | 5.00% | |
Designated as Hedging Instrument [Member] | Maximum [Member] | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount, Percent of Required Need, Yearly Average | 60.00% |
Derivative Instruments - Income
Derivative Instruments - Income Statement (Details) - Not Designated as Hedging Instrument [Member] - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Realized Gain (Loss) | $ 606,000 | $ 3,530,000 | $ 2,957,000 |
Change In Unrealized Gain (Loss) | (7,325,000) | 927,000 | (48,000) |
Total Gain (Loss) | (6,719,000) | 4,457,000 | 2,909,000 |
Commodity Contract [Member] | Cost of Goods Sold [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Realized Gain (Loss) | 1,783,000 | 3,530,000 | 2,957,000 |
Change In Unrealized Gain (Loss) | (7,325,000) | 927,000 | (48,000) |
Total Gain (Loss) | (5,542,000) | $ 4,457,000 | $ 2,909,000 |
Commodity Contract [Member] | Sales | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Realized Gain (Loss) | (1,177,000) | ||
Change In Unrealized Gain (Loss) | 0 | ||
Total Gain (Loss) | $ (1,177,000) |
Derivative Instruments - Balanc
Derivative Instruments - Balance Sheet (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Derivatives, Fair Value [Line Items] | ||
Derivative instruments | $ 840,857 | $ 799,484 |
Other Current Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Other Receivables from Broker-Dealers and Clearing Organizations | 7,074,000 | (290,000) |
Derivative instruments | 841,000 | 799,000 |
Commodity Contract [Member] | Other Current Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
In gain position | 0 | 1,126,000 |
In loss position | $ (6,233,000) | $ (37,000) |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading securities | $ 0 | $ 42,508,451 |
Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading securities | 0 | 42,508,000 |
Derivative Assets | 1,126,000 | |
Derivative Liability | (6,233,000) | (37,000) |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading securities | 0 | 42,508,000 |
Derivative Assets | 1,126,000 | |
Derivative Liability | (6,233,000) | (37,000) |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading securities | 0 | 0 |
Derivative Assets | 0 | |
Derivative Liability | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading securities | 0 | 0 |
Derivative Assets | 0 | |
Derivative Liability | $ 0 | $ 0 |
Quarterly Financial Data (Una_3
Quarterly Financial Data (Unaudited) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||
Revenue | $ 79,090,057 | $ 73,396,939 | $ 63,862,205 | $ 65,037,238 | $ 85,628,405 | $ 76,896,475 | $ 84,860,557 | $ 82,074,397 | $ 69,197,305 | $ 77,391,884 | $ 84,188,461 | $ 76,622,447 | $ 281,386,439 | $ 329,774,685 | $ 307,400,097 |
Gross Profit | (999,427) | 8,128,255 | 4,577,977 | (3,927,585) | 7,428,426 | 4,527,443 | 4,600,109 | 5,567,871 | (1,602,151) | 7,436,293 | 12,090,427 | 5,926,327 | 7,779,220 | 22,123,849 | 23,850,896 |
Operating Income (Loss) | (1,904,528) | 7,150,515 | 3,746,721 | (4,932,598) | 6,413,554 | 3,801,180 | 3,621,216 | 4,402,367 | (2,517,095) | 6,540,911 | 10,987,670 | 5,181,254 | 4,060,110 | 18,238,317 | 20,192,740 |
Net Income | $ 105,729 | $ 7,256,014 | $ 3,961,822 | $ (5,248,565) | $ 6,507,261 | $ 3,990,592 | $ 4,259,845 | $ 4,719,055 | $ (2,410,652) | $ 6,404,067 | $ 10,700,036 | $ 5,072,754 | $ 6,075,000 | $ 19,476,753 | $ 19,766,205 |
Basic & diluted earnings earnings per unit (in dollars per share) | $ 2 | $ 112 | $ 61 | $ (81) | $ 101 | $ 62 | $ 66 | $ 73 | $ (38) | $ 99 | $ 166 | $ 79 | $ 94 | $ 302 | $ 306 |
Uncategorized Items - home-2020
Label | Element | Value |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | us-gaap_CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents | $ 28,751,994 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | us-gaap_CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents | $ 29,568,227 |