10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

☒     QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 

For the quarterly period ended March 31, 2023

☐    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 For the transition period from                to

☒ COMMISSION FILE NO. 000-50253

 

SOUTH DAKOTA SOYBEAN PROCESSORS LLC

(Exact name of registrant as specified in its charter)

SD	46-0462968
(State or Other Jurisdiction of Incorporation or Organization)	(I.R.S. Employer Identification No.)
100 Caspian Ave; PO Box 500 Volga, SD	57071
(Address of Principal Executive Offices	(Zip Code)

(605) 627-9240

(Registrant's telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes   x     No  ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes x     No  ¨

Indicate by check mark whether the registrant is a large accelerated filer, accelerated filer or a non-accelerated filer. See definition of “accelerated filer and large accelerated filer” in Rule 12b-2 of the Exchange Act. (Check one):

¨	Large Accelerated Filer	¨	Accelerated Filer	x	Non-Accelerated Filer	¨	Smaller Reporting Company	¨	Emerging Growth Company
					(do not check if a smaller reporting company)

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for company with a new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). 

¨    Yes       x    No

APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY

PROCEEDINGS DURING THE PRECEDING FIVE YEARS

Check whether the registrant filed all documents and reports required to be filed by Section 12, 13 or 15(d) of the Exchange Act after the distribution of securities under a plan confirmed by a court.     Yes   ¨  No   ¨

APPLICABLE ONLY TO CORPORATE ISSUERS

State the number of shares outstanding of each of the issuer’s classes of common equity, as of the latest practicable date: On May 11, 2023, the registrant had 30,411,500 capital units outstanding.

Table of Contents  

			Page
Part I.	FINANCIAL INFORMATION		3
	Item I.	Financial Statements (Unaudited)	3
	Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	19
	Item 3.	Quantitative and Qualitative Disclosures about Market Risk	22
	Item 4.	Controls and Procedures	23
Part II.	OTHER INFORMATION		23
	Item 1.	Legal Proceedings	23
	Item 1A.	Risk Factors	23
	Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	23
	Item 3.	Defaults among Senior Securities	24
	Item 4.	Mine Safety Disclosures	24
	Item 5.	Other Information	24
	Item 6.	Exhibits	24
Signatures			24

2

PART I – FINANCIAL INFORMATION

Item 1.    Financial Statements

South Dakota Soybean Processors, LLC

Condensed Financial Statements

March 31, 2023 and 2022

3

South Dakota Soybean Processors, LLC

Condensed Balance Sheets

	March 31, 2023		December 31, 2022
	(Unaudited)
Assets
Current assets
Cash and cash equivalents	$	692,547	$	866,699
Trade accounts receivable	41,575,594		43,517,754
Inventories	127,615,183		134,246,154
Commodity derivative instruments	15,879,106		10,950,831
Margin deposits	3,220,204		5,603,930
Prepaid expenses	2,520,958		2,364,362
Total current assets	191,503,592		197,549,730
Property and equipment	142,033,176		140,903,867
Less accumulated depreciation	(67,396,150)		(66,343,898)
Total property and equipment, net	74,637,026		74,559,969
Other assets
Investments in related parties	21,917,466		14,576,910
Investments in cooperatives	1,737,862		1,705,549
Right-of-use lease asset, net	30,861,084		22,708,362
Other assets	96,250		96,250
Total other assets	54,612,662		39,087,071
Total assets	$	320,753,280	$	311,196,770

(continued on following page)

4

South Dakota Soybean Processors, LLC

Condensed Balance Sheets (continued)

	March 31, 2023		December 31, 2022
	(Unaudited)
Liabilities and Members' Equity
Current liabilities
Excess of outstanding checks over bank balance	$	14,403,535	$	18,504,251
Current maturities of long-term debt	4,000,000		—
Note payable - seasonal loan	60,400,891		138,165
Current operating lease liabilities	3,007,006		2,632,995
Accounts payable	2,579,168		2,245,339
Accrued commodity purchases	32,889,307		70,744,667
Commodity derivative instruments	15,136,283		20,010,772
Accrued expenses	3,861,455		6,062,608
Accrued interest	452,032		135,081
Deferred liabilities - current	1,210,244		1,074,059
Total current liabilities	137,939,921		121,547,937
Long-term liabilities
Long-term debt, net of current maturities and unamortized debt     issuance costs	7,997,560		8,845,683
Long-term operating lease liabilities	25,005,864		17,168,224
Deferred liabilities	22,547		96,250
Total long-term liabilities	33,025,971		26,110,157
Commitments and contingencies (Notes 6, 7, 8, and 13)
Members' equity
Class A Units, no par value, 30,411,500 units issued and     outstanding at March 31, 2023 and December 31, 2022	149,787,388		163,538,676
Total liabilities and members' equity	$	320,753,280	$	311,196,770

The accompanying notes are an integral part of these condensed financial statements.

5

South Dakota Soybean Processors, LLC

Condensed Statements of Operations (Unaudited)

For the Three-Month Periods Ended March 31, 2023 and 2022

	2023		2022
Net revenues	$	171,913,308	$	171,724,126
Cost of revenues:
Cost of product sold	124,238,702		132,866,162
Production	10,718,977		8,997,876
Freight and rail	12,122,778		10,879,590
Brokerage fees	189,280		170,393
Total cost of revenues	147,269,737		152,914,021
Gross profit	24,643,571		18,810,105
Operating expenses:
Administration	1,577,952		1,398,466
Operating income	23,065,619		17,411,639
Other income (expense):
Interest expense	(920,108)		(387,560)
Other non-operating income (expense)	(96,046)		574,161
Patronage dividend income	693,047		699,595
Total other income (expense)	(323,107)		886,196
Net income	$	22,742,512	$	18,297,835
Basic and diluted earnings per capital unit	$	0.75	$	0.60
Weighted average number of capital units outstanding for calculation of basic and diluted earnings per capital unit	30,411,500		30,419,000

The accompanying notes are an integral part of these condensed financial statements.

6

South Dakota Soybean Processors, LLC

Condensed Statements of Changes in Members' Equity (Unaudited)

For the Three Months Ended March 31, 2023 and 2022

	Class A Units
	Units	Amount
Balances, December 31, 2021	30,419,000	$	113,414,905
Net income	—	18,297,835
Distribution to members	—	(17,338,830)
Balances, March 31, 2022	30,419,000	$	114,373,910
Balances, December 31, 2022	30,411,500	$	163,538,676
Net income	—	22,742,512
Distribution to members	—	(36,493,800)
Balances, March 31, 2023	30,411,500	$	149,787,388

The accompanying notes are an integral part of these condensed financial statements.

7

South Dakota Soybean Processors, LLC

Condensed Statements of Cash Flows (Unaudited)

For the Three Months Ended March 31, 2023 and 2022

	2023		2022
Operating activities
Net income	$	22,742,512	$	18,297,835
Charges and credits to net income not affecting cash:
Depreciation and amortization	1,415,296		1,386,716
Net (gain) loss recognized on derivative activities	(14,483,613)		7,263,904
Loss (gain) on sale of property and equipment	(31,853)		4,381
Non-cash patronage dividends	(32,313)		(145,749)
Change in current assets and liabilities	(25,239,631)		(62,664,425)
Net cash provided by (used for) operating activities	(15,629,602)		(35,857,338)
Investing activities
Purchase of investments	(5,904,137)		—
Proceeds from sales of property and equipment	100,000		—
Purchase of property and equipment	(1,559,279)		(733,524)
Net cash provided by (used for) investing activities	(7,363,416)		(733,524)
Financing activities
Change in excess of outstanding checks over bank balances	(4,100,716)		(3,214,188)
Net proceeds (payments) from seasonal borrowings	60,262,726		57,816,612
Distributions to members	(36,493,800)		(17,338,830)
Proceeds from long-term debt	6,581,850		4,224,724
Principal payments on long-term debt	(3,431,194)		(5,127,197)
Net cash provided by (used for) financing activities	22,818,866		36,361,121
Net change in cash and cash equivalents	(174,152)		(229,741)
Cash and cash equivalents, beginning of period	866,699		833,738
Cash and cash equivalents, end of period	$	692,547	$	603,997
Supplemental disclosures of cash flow information
Cash paid during the period for:
Interest	$	603,157	$	283,066
Income taxes	$	—	$	—
Noncash investing activities:
Soybean meal contributed as investment in related party	$	1,436,420	—

The accompanying notes are an integral part of these condensed financial statements. 

8

South Dakota Soybean Processors, LLC

Notes to Condensed Financial Statements

Note 1 -         Principal Activity and Significant Accounting Policies

The unaudited condensed financial statements contained herein have been prepared pursuant to the rules and regulations of the Securities Exchange Commission. Certain information and note disclosures normally included in annual financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to those rules and regulations, although South Dakota Soybean Processors, LLC (the “Company”, “LLC”, “we”, “our”, or “us”) believes that the disclosures made are adequate to make the information not misleading.

In the opinion of management, all normal recurring adjustments considered necessary for a fair presentation have been included in the accompanying condensed financial statements. The results of operations and cash flows for interim periods are not necessarily indicative of results for a full year due in part to the seasonal nature of some of the Company’s businesses. The balance sheet data as of December 31, 2022 has been derived from audited financial statements but does not include all disclosures required by accounting principles generally accepted in the United States of America.

These statements should be read in conjunction with the financial statements and notes thereto for the year ended December 31, 2022, included in the Company’s annual report on Form 10-K filed with the Securities and Exchange Commission ("SEC") on March 30, 2023.

Use of estimates

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

Revenue

The Company accounts for all of its revenues from contracts with customers under ASC 606, Revenue from Contracts with Customers.

The Company principally generates revenue from merchandising and transporting manufactured agricultural products used as ingredients in food, feed, energy and industrial products. Revenue is measured based on the consideration specified in the contract with a customer, and excludes any amounts collected on behalf of third parties (e.g. - taxes). The Company follows a policy of recognizing revenue at a single point in time when it satisfies its performance obligation by transferring control over a product to a customer. Control transfer typically occurs when goods are shipped from our facilities or at other predetermined control transfer points (for instance, destination terms). Shipping and handling costs related to contracts with customers for sale of goods are accounted for as a fulfillment activity and are included in cost of revenues. Accordingly, amounts billed to customers for such costs are included as a component of revenues.

Payments received in advance to the transfer of goods, or "contract liabilities", are included in "Deferred liabilities - current" on the Company's condensed balance sheets. These customer prepayments totaled $1,210,244 and $1,074,059 as of March 31, 2023 and December 31, 2022, respectively. Of the $1,074,059 balance as of December 31, 2022, the Company recognized $723,453 as revenues for the three months ended March 31, 2023. Of the $1,347,409 customer prepayments as of December 31, 2021, the Company recognized $1,340,132 of contract liabilities as revenues during the three months ended March 31, 2022.

9

South Dakota Soybean Processors, LLC

Notes to Condensed Financial Statements

The following table presents a disaggregation of revenue from contracts with customers for the three month periods ended March 31, 2023 and 2022, by product type:

	2023		2022
Soybean meal and hulls	$	97,123,852	$	87,424,050
Soybean oil and oil byproducts	74,789,456		84,300,076
Totals	$	171,913,308	$	171,724,126

Recent accounting pronouncements

Any recent accounting pronouncements are not expected to have a material impact on our condensed financial statements.

Note 2 -         Accounts Receivable

Accounts receivable are considered past due when payments are not received on a timely basis in accordance with the Company’s credit terms, which is generally 30 days from invoice date. Accounts considered uncollectible are written off. The Company’s estimate of the allowance for credit losses is based on historical experience, its evaluation of the current status of receivables, and unusual circumstances, if any.

The following table presents the aging analysis of trade receivables as of March 31, 2023 and December 31, 2022:

	March 31, 2023		December 31, 2022
Past due:
Less than 30 days past due	$	8,871,435	$	13,779,760
30-60 days past due	395,774		1,780,664
60-90 days past due	363,178		182,146
Greater than 90 days past due	41,034		45,830
Total past due	9,671,421		15,788,400
Current	31,904,173		27,729,354
Totals	$	41,575,594	$	43,517,754

The following table provides information regarding the Company's allowance for credit losses as of March 31, 2023 and December 31, 2022:

	March 31, 2023		December 31, 2022
Balances, beginning of period	$	—	$	—
Amounts charged (credited) to costs and expenses	—		(115,208)
Additions (deductions)	—		115,208
Balances, end of period	$	—	$	—

In general, cash received is applied to the oldest outstanding invoice first, unless payment is for a specified invoice. The Company, on a case by case basis, may charge a late fee of 1.5% per month on past due receivables.

10

South Dakota Soybean Processors, LLC

Notes to Condensed Financial Statements

Note 3 -           Inventories

The Company’s inventories consist of the following at March 31, 2023 and December 31, 2022:

	March 31, 2023		December 31, 2022
Finished goods	$	63,553,506	$	62,619,087
Raw materials	63,497,250		71,001,459
Supplies & miscellaneous	564,427		625,608
Totals	$	127,615,183	$	134,246,154

Finished goods and raw materials are valued at estimated market value, which approximates net realizable value. Supplies and other inventories are stated at the lower of cost or net realizable value.

Note 4 -           Investments in Related Parties

The Company’s investments in related parties consist of the following at March 31, 2023 and December 31, 2022:

	March 31, 2023		December 31, 2022
High Plains Partners, LLC	$	8,280,316	$	2,376,180
Prairie AquaTech, LLC	1,553,727		1,553,727
Prairie AquaTech Investments, LLC	5,000,000		5,000,000
Prairie AquaTech Manufacturing, LLC	7,083,423		5,647,003
Totals	$	21,917,466	$	14,576,910

The Company measures its investments in Prairie AquaTech, LLC, Prairie AquaTech Investments, LLC, Prairie AquaTech Manufacturing, LLC and High Plains Partners, LLC at their cost less any impairment plus or minus any observable price changes in orderly transactions since these equity investments do not have readily determinable fair values.

The Company invested $1,436,420 and $0 of soybean meal in Prairie AquaTech Manufacturing, LLC for the three months ended March 31, 2023 and 2022, respectively.

In February 2022, the Company announced its plans to construct a multi-seed processing plant near Mitchell, South Dakota. In September 2022, the Company entered into a capital contribution and commitment agreement with High Plains Partners, LLC. Per the agreement, the Company will transfer all rights, title and interest to all of the tangible and intangible development rights, including engineering, permitting, studies, records, etc., totaling $5.0 million held by the Company in exchange for 2,615 Class B units in High Plains Partners, LLC. The Company also committed to invest at least another $70.0 million for 17,169 Class B capital units in the entity. As of March 31, 2023, the Company had contributed $8,280,316 towards the project. Operation of the facility is expected to begin in late 2025.

11

South Dakota Soybean Processors, LLC

Notes to Condensed Financial Statements

Note 5 -         Property and Equipment

The following is a summary of the Company's property and equipment at March 31, 2023 and December 31, 2022:

	2023						2022
	Cost		Accumulated Depreciation		Net		Net
Land	$	516,326	$	—	$	516,326	$	516,326
Land improvements	2,695,462		(1,110,726)		1,584,736		1,625,212
Buildings and improvements	26,288,868		(11,454,054)		14,834,814		15,001,754
Machinery and equipment	95,048,269		(53,266,772)		41,781,497		42,924,227
Railroad cars	10,679,356		(532,038)		10,147,318		10,200,714
Company vehicles	151,682		(129,630)		22,052		26,226
Furniture and fixtures	1,528,219		(902,930)		625,289		394,353
Construction in progress	5,124,994		—		5,124,994		3,871,157
Totals	$	142,033,176	$	(67,396,150)	$	74,637,026	$	74,559,969

Depreciation of property and equipment was $1,414,076 and $1,385,495 for the three months ended March 31, 2023 and 2022, respectively.

Note 6 -         Note Payable – Seasonal Loan

The Company has entered into a revolving credit agreement with CoBank which expires December 1, 2023. The purpose of the credit agreement is to finance the operating needs of the Company. Under this agreement, the Company could borrow up to $85 million, and advances on the revolving credit agreement are secured. Interest accrues at a variable rate (7.05% at March 31, 2023). The Company pays a 0.20% annual commitment fee on any funds not borrowed. There were advances outstanding of $60,400,891 and $138,165 at March 31, 2023 and December 31, 2022, respectively. The remaining available funds to borrow under the terms of the revolving credit agreement were $24.6 million as of March 31, 2023.

Note 7 -         Long-Term Debt

The following is a summary of the Company's long-term debt at March 31, 2023 and December 31, 2022:

	March 31, 2023		December 31, 2022
Revolving term loan from CoBank, interest at variable rates (7.35% and 6.85% at March 31, 2023 and December 31, 2022, respectively), secured by substantially all property and equipment. Loan matures March 20, 2026.	$	12,000,000	$	8,849,344
Less current maturities	(4,000,000)		—
Less debt issuance costs, net of amortization of $21,560 and $20,339 as of March 31, 2023 and December 31, 2022, respectively	(2,440)		(3,661)
Total long-term debt	$	7,997,560	$	8,845,683

The Company entered into an agreement as of April 27, 2022 with CoBank to amend and restate its Credit Agreement, which includes both the revolving term and seasonal loans. Under the terms and conditions of the Credit Agreement, CoBank agreed to make advances to the Company for up to $16,000,000 on the revolving term loan with a variable effective interest rate of 7.35%. The amount available for borrowing on the revolving term loan will decrease by $2,000,000 every six months until the loan's maturity date of March 20, 2026. The Company pays a 0.40% annual commitment fee on any funds not borrowed. The debt issuance costs of $24,000 paid by the Company will be amortized over the term of loan. The principal balance outstanding on the revolving term loan was

12

South Dakota Soybean Processors, LLC

Notes to Condensed Financial Statements

$12,000,000 and $8,849,344 as of March 31, 2023 and December 31, 2022, respectively. There were no remaining commitments available to borrow on the revolving term loan as of March 31, 2023.

Under this agreement, the Company is subject to compliance with standard financial covenants and the maintenance of certain financial ratios. The Company was in compliance with all covenants and conditions with CoBank as of March 31, 2023.

The following are minimum principal payments on long-term debt obligations for the twelve-month periods ended March 31:

2024	$	4,000,000
2025	4,000,000
2026	4,000,000
Total	$	12,000,000

Note 8 -        Operating Leases

The Company has several operating leases for railcars. These leases have terms ranging from 3-12 years and most do not have renewal terms provided. The leases require the Company to maintain the condition of the railcars, restrict the use of the railcars to specified products, such as soybean meal, hulls or oil, limit usage to the continental United States, Canada or Mexico, require approval to sublease to other entities, and require the Company's submission of its financial statements. Lease expense for all railcars was $880,151 and $664,488 for the three months ended March 31, 2023 and 2022, respectively.

The following is a schedule of the Company's operating leases for railcars as of March 31, 2023:

Lessor	Quantity of Railcars	Commencement Date	Maturity Date	Monthly Payment
American Railcar Leasing	13	6/1/2021	5/31/2024	$	7,150
Andersons Railcar Leasing Co.	10	7/1/2018	6/30/2023	5,000
Andersons Railcar Leasing Co.	20	7/1/2019	6/30/2026	11,300
Andersons Railcar Leasing Co.	15	11/1/2021	10/31/2026	8,250
Farm Credit Leasing	87	9/1/2020	8/31/2032	34,929
Farm Credit Leasing	8	6/1/2021	5/31/2033	5,966
Farm Credit Leasing	9	10/1/2021	9/30/2033	4,624
Farm Credit Leasing	23	7/1/2022	6/30/2034	13,863
Farm Credit Leasing	30	8/1/2022	7/31/2034	30,422
Farm Credit Leasing	20	10/1/2022	9/30/2034	21,668
Farm Credit Leasing	100	4/1/2023	3/31/2035	81,466
GATX Corporation	14	7/1/2020	6/30/2024	4,200
Trinity Capital	29	11/1/2020	10/31/2023	17,255
Trinity Capital	20	11/1/2020	10/31/2023	11,900
Trinity Capital	2	6/1/2021	5/31/2026	980
Wells Fargo Rail	109	3/1/2022	2/28/2027	51,775
Wells Fargo Rail	7	5/1/2022	4/30/2027	2,765
Wells Fargo Rail	15	5/1/2022	4/30/2027	5,925
Wells Fargo Rail	105	1/1/2023	12/31/2029	49,875
	636			$	369,313

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South Dakota Soybean Processors, LLC

Notes to Condensed Financial Statements

The Company also has a number of other operating leases for machinery and equipment. These leases have terms ranging from 3-7 years; however, most of these leases have automatic renewal terms. These leases require monthly payments of $3,929. Rental expense under these other operating leases was $11,219 and $46,416 for the three-month periods ended March 31, 2023 and 2022, respectively.

On March 19, 2020, the Company entered into an agreement with an entity in the western United States to provide storage and handling services for the Company's soybean meal. The Company paid the entity $3,300,000 after the entity's construction of additional storage and handling facilities. The agreement began May 1, 2021 and will mature on April 30, 2027 but includes an additional seven-year renewal period at the sole discretion of the Company. Rental expense under this agreement was $58,929 and $58,929 for the three months ended March 31, 2023 and 2022, respectively.

Operating leases are included in right-to-use lease assets, current operating lease liabilities, and long-term lease liabilities on the Company's condensed balance sheets. These assets and liabilities are recognized at the commencement date based on the present value of remaining lease payments over the lease term using the Company's secured incremental borrowing rates or implicit rates, when readily determinable. Short-term operating leases, which have an initial term of 12 months or less, are not recorded on the condensed balance sheet.

Lease expense for these operating leases is recognized on a straight-line basis over the lease terms. The components of lease costs recognized within our condensed statements of operations for the three-month periods ended March 31, 2023 and 2022 were as follows:

	2023		2022
Cost of revenues - Freight and rail	$	880,151	$	664,488
Cost of revenues - Production	65,642		99,013
Administration expenses	4,506		6,332
Total operating lease costs	$	950,299	$	769,833

The following summarizes the supplemental cash flow information for the three-month periods ended March 31, 2023 and 2022:

	2023		2022
Cash paid for amounts included in measurement of lease liabilities	$	875,288	$	749,933
Supplemental non-cash information:
Right-of-use assets obtained in exchange for lease liabilities	$	8,914,885	$	3,386,523

The following summarizes the weighted-average remaining lease term and weighted-average discount rate as of March 31, 2023:

Weighted-average remaining lease-term - operating leases (in years)	9.8
Weighted-average discount rate - operating leases	4.2	%

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South Dakota Soybean Processors, LLC

Notes to Condensed Financial Statements

The following is a maturity analysis of the undiscounted cash flows of the operating lease liabilities as of March 31, 2023:

	Railcars		Other		Total
Twelve-month periods ended March 31:
2024	$	4,240,974	$	40,539	$	4,281,513
2025	3,912,589		30,038		3,942,627
2026	3,885,689		14,790		3,900,479
2027	3,681,164		10,256		3,691,420
2028	2,922,439		5,742		2,928,181
Thereafter	15,458,688		—		15,458,688
Total lease payments	34,101,543		101,365		34,202,908
Less amount of lease payments representing interest	(6,184,265)		(5,773)		(6,190,038)
Total present value of lease payments	$	27,917,278	$	95,592	$	28,012,870

Note 9 -        Member Distribution

On January 31, 2023, the Company’s Board of Managers approved a cash distribution of approximately $36.5 million, or $1.20 per capital unit. The distribution was paid in accordance with the Company’s operating agreement and distribution policy on February 2, 2023.

Note 10 -         Derivative Instruments and Hedging Activities

In the ordinary course of business, the Company enters into contractual arrangements as a means of managing exposure to changes in commodity prices and, occasionally, foreign exchange and interest rates. The Company’s derivative instruments primarily consist of commodity futures, options and forward contracts, and interest rate swaps, caps and floors. Although these contracts may be effective economic hedges of specified risks, they are not designated as, nor accounted for, as hedging instruments. These contracts are recorded on the Company’s condensed balance sheets at fair value as discussed in Note 11, Fair Value.

As of March 31, 2023 and December 31, 2022, the value of the Company’s open futures, options and forward contracts was $742,823 and $(9,059,941), respectively.

		As of March 31, 2023
	Balance Sheet Classification	Asset Derivatives		Liability Derivatives
Derivatives not designated as hedging instruments:
Commodity contracts	Current Assets/Liabilities	$	14,820,737	$	14,954,846
Foreign exchange contracts	Current Assets/Liabilities	46,443		38,622
Interest rate caps and floors	Current Assets/Liabilities	1,011,926		142,815
Totals		$	15,879,106	$	15,136,283

15

South Dakota Soybean Processors, LLC

Notes to Condensed Financial Statements

		As of December 31, 2022
	Balance Sheet Classification	Asset Derivatives		Liability Derivatives
Derivatives not designated as hedging instruments:
Commodity contracts	Current Assets/Liabilities	$	9,716,111	$	19,820,839
Foreign exchange contracts	Current Assets/Liabilities	77,983		53,267
Interest rate caps and floors	Current Assets/Liabilities	1,156,737		136,666
Totals		$	10,950,831	$	20,010,772

During the three-month periods ended March 31, 2023 and 2022, net realized and unrealized gains (losses) on derivative transactions were recognized in the condensed statements of operations as follows:

	Net Gain (Loss) Recognized  on Derivative Activities for the
	Three Months Ended March 31,
	2023		2022
Derivatives not designated as hedging instruments:
Commodity contracts	$	13,826,366	$	(7,832,140)
Foreign exchange contracts	814,321		(2,228)
Interest rate swaps, caps and floors	(157,074)		570,464
Totals	$	14,483,613	$	(7,263,904)

The Company recorded gains (losses) in cost of goods sold related to its commodity derivative instruments of $14,483,613 and $(7,263,904) for the three-month periods ended March 31, 2023 and 2022, respectively.

Note 11 -       Fair Value

ASC 820, Fair Value Measurements and Disclosures, defines fair value, establishes a comprehensive framework for measuring fair value and expands disclosures which are required about fair value measurements. Specifically, this guidance establishes a hierarchy prioritizing the inputs to valuation techniques, giving the highest priority to quoted prices in active markets for identical assets and liabilities and the lowest priority to unobservable value inputs. The three levels of hierarchy and examples are as follows:

•Level 1 – Quoted prices are available in active markets for identical assets or liabilities as of the reported date. The types of assets and liabilities included in Level 1 are highly liquid and actively traded instruments with quoted prices, such as equities listed on the New York Stock Exchange and commodity derivative contracts listed on the Chicago Board of Trade (“CBOT”).

•Level 2 – Pricing inputs are other than quoted prices in active markets, but are either directly or indirectly observable as of the reported date. The types of assets and liabilities in Level 2 are typically either comparable to actively traded securities or contracts, or priced with models using highly observable inputs, such as commodity prices using forward future prices.

•Level 3 – Significant inputs to pricing that are unobservable as of the reporting date. The types of assets and liabilities included in Level 3 are those with inputs requiring significant management judgment or estimation, such as complex and subjective models and forecasts used to determine the fair value of financial transmission rights.

The following tables set forth financial assets and liabilities measured at fair value in the condensed balance sheets and the respective levels to which fair value measurements are classified within the fair value hierarchy as of March 31, 2023 and December 31, 2022:

16

South Dakota Soybean Processors, LLC

Notes to Condensed Financial Statements

	Fair Value as of March 31, 2023
	Level 1		Level 2		Level 3		Total
Financial assets:
Inventory	$	—	$	126,699,208	$	—	$	126,699,208
Commodity derivative instruments	$	742,823	$	—	$	—	$	742,823
Margin deposits (deficits)	$	3,220,204	$	—	$	—	$	3,220,204

	Fair Value as of December 31, 2022
	Level 1		Level 2		Level 3		Total
Financial assets:
Inventory	$	—	$	133,543,821	$	—	$	133,543,821
Commodity derivative instruments	$	(9,059,941)	$	—	$	—	$	(9,059,941)
Margin deposits	$	5,603,930	$	—	$	—	$	5,603,930

The Company enters into various commodity derivative instruments, including futures, options, swaps and other agreements. The fair value of the Company’s commodity derivatives is determined using unadjusted quoted prices for identical instruments on the CBOT. The Company estimates the fair market value of their finished goods and raw materials inventories using the market price quotations of similar forward future contracts listed on the CBOT and adjusts for the local market adjustments derived from other grain terminals in our area.

The Company considers the carrying amount of significant classes of financial instruments on the balance sheets, including cash, accounts receivable, and accounts payable, to be reasonable estimates of fair value due to their length or maturity. The fair value of the Company’s long-term debt approximates the carrying value. The interest rates on the long-term debt are similar to rates the Company would be able to obtain currently in the market.

The Company has patronage investments in other cooperatives and common and preferred stock holdings in privately held entities. There is no market for their patronage credits or the entity’s common and preferred holdings, and it is impracticable to estimate the fair value of the Company’s investments. These investments are carried on the balance sheet at original cost plus the amount of patronage earnings allocated to the Company, less any cash distributions received.

Note 12 -       Related Party Transactions

The Company has equity investments in Prairie AquaTech, LLC, Prairie AquaTech Manufacturing, LLC and Prairie AquaTech Investments, LLC. The Company sold soybean products to Prairie AquaTech, LLC and Prairie AquaTech Manufacturing, LLC totaling $2,947,866 and $3,755,756 during the three months ended March 31, 2023 and 2022, respectively. As of March 31, 2023 and December 31, 2022, Prairie AquaTech, LLC and Prairie AquaTech Manufacturing, LLC owed the Company $0 and $1,433,551, respectively.

Note 13 -       Commitments and Contingencies

As of March 31, 2023, the Company had unpaid commitments of approximately $1,866,000 for construction and acquisition of property and equipment, all of which is expected to be incurred by March 31, 2024.

The Company has entered into an agreement with High Plains Partners, LLC (“HPP”) to commit $75.0 million into HPP to facilitate the construction of a multi-seed processing facility near Mitchell, South Dakota. The funding of the commitment is subject to several conditions.

From time to time in the ordinary course of our business, the Company may be named as a defendant in legal proceedings related to various issues, including without limitation, workers’ compensation claims, tort claims, or contractual dispute. The Company carries insurance that provides protection against general commercial liability claims, claims against our directors, officer and employees, business interruption, automobile liability, and workers' compensation. The Company is not currently involved in any material legal proceedings and are not aware of any potential claims.

17

South Dakota Soybean Processors, LLC

Notes to Condensed Financial Statements

Note 14 -       Subsequent Event

The Company evaluated all of its activities and concluded that no subsequent events have occurred that would require recognition in its financial statements or disclosed in the notes to its financial statements.

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Item 2.    Management’s Discussion and Analysis of Financial Condition and Results of Operations.

Forward-Looking Statements

The information in this quarterly report on Form 10-Q for the three-month period ended March 31, 2023, (including reports filed with the Securities and Exchange Commission (the “SEC” or “Commission”), contains “forward-looking statements” that deal with future results, expectations, plans and performance, and should be read in conjunction with the financial statements and Annual Report on Form 10-K for the year ended December 31, 2022. Forward-looking statements may include statements which use words such as “believe,” “expect,” “anticipate,” “intend,” “plan,” “estimate,” “predict,” “hope,” “will,” “should,” “could,” “may,” “future,” “potential,” or the negatives of these words, and all similar expressions. Forward-looking statements involve numerous assumptions, risks and uncertainties. Actual results or actual business or other conditions may differ materially from those contemplated by any forward-looking statements. Factors that could cause actual results to differ materially from the forward-looking statements are identified in our Form 10-K for the year ended December 31, 2022.

We are not under any duty to update the forward-looking statements contained in this report, nor do we guarantee future results or performance or what future business conditions will be like. We caution you not to put undue reliance on any forward-looking statements, which speak only as of the date of this report.

Executive Overview and Summary

For the first quarter of 2023, we had a net profit of $22.7 million, a $4.4 million increase over the same period in 2022, as strong soybean oil values and soybean meal demand continued from 2022. Oil values benefited from continuing demand in the food and fuel sectors. Meal demand was boosted by concerns over a reduced soybean crop in Argentina which reduced meal product there and led to increased meal purchasing in the U.S. An above-average soybean crop in terms of quality further contributed to our bottom line. Soybeans harvested last fall were above historical averages in oil and protein content, and lower in moisture.

Looking ahead, we expect earnings to decrease in the second quarter. Soybean oil demand continues to be influenced by a rapid build out in renewable diesel capacity. Many new diesel plants which were previously forecast to come online during the first quarter of 2023 have, however, experienced construction-related delays or have struggled starting up. Consequently, some of these plants have had to delay purchases of oil or have had to sell oil back oil into the market, causing a sharp drop in nearby soybean oil values. We anticipate, however, these plants will get back on track and demand will improve later this year. As for soybean meal, we expect an over-supply situation both domestically and globally over the next few months. Brazil is currently experiencing a record soybean crop and processing at maximum capacity. Argentina, while dealing with a short domestic crop, has been able to procure supply from Brazil and maintain exports of meal. Once the Brazilian harvest is complete, Argentine processors are expected to slow down due to a lack of supply. As U.S. processors enter the seasonal maintenance period, soybean meal values should also improve. Available soybean supplies are currently difficult to forecast. Crop reports released at the end of March indicated that South Dakota should have adequate inventories to provide a new crop. Growing conditions in South Dakota this summer will be a key determining factor for our fourth quarter performance. Finally, we continue to take additional steps toward the planning and building of a crushing plant near Mitchell, South Dakota. We are actively working on its development including financing, engineering and permitting.

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RESULTS OF OPERATIONS

Comparison of the three months ended March 31, 2023 and 2022

	Three Months Ended March 31, 2023			Three Months Ended March 31, 2022
	$		% of Revenue	$		% of Revenue
Revenue	$	171,913,308	100.0	$	171,724,126	100.0
Cost of revenues	(147,269,737)		(85.7)	(152,914,021)		(89.0)
Gross profit	24,643,571		14.3	18,810,105		11.0
Operating expenses	(1,577,952)		(0.9)	(1,398,466)		(0.8)
Interest expense	(920,108)		(0.5)	(387,560)		(0.2)
Other non-operating income (expense)	597,001		0.3	1,273,756		0.7
Net income	$	22,742,512	13.2	$	18,297,835	10.7

Revenue – Revenue increased $0.2 million, or 0.1%, for the three-month period ended March 31, 2023, compared to the same period in 2022. The increase in revenues was primarily due to increases in the average sales price of soybean meal and refined soybean oil. The average sales price of soybean meal increased 16% during the three months ended March 31, 2023, compared to the same period in 2022, due to drought conditions in Argentina as well as North America. A severe drought in Argentina, which is responsible for almost 30% of the world's soybean meal exports, shifted demand for meal to the U.S., and allowed producers like us to benefit from increased export opportunities.The average sales price of soybean oil increased approximately 7% in the three months ended March 31, 2023 from the same period in 2022, due to surging demand from the renewable diesel and food sectors. Partially offsetting the increases in average sales price was an 18% decrease in sales volume of refined soybean oil due primarily to a refinery shutdown. Early in the first quarter of 2023, our refinery was shut down for two weeks because of a mechanical breakdown which has since been resolved.

Gross Profit/Loss – Gross profit increased $5.8 million, or 31.0%, for the three months ended March 31, 2023, compared to the same period in 2022. The increase in gross profit was primarily due to increased demand for soybean meal and oil. Demand for soybean meal improved due to drought conditions in Argentina and other parts of the U.S. Soybean oil demand also increased from the renewable diesel sector as more diesel plants were opened in the U.S.

Operating Expenses – Administrative expenses, including all selling, general and administrative expenses, increased approximately $179,000, or 12.8%, during the three-month period ended March 31, 2023, compared to the same period in 2022. The increase was primarily due to a decrease in the recovery of accounts receivable previously determined to be uncollectible. During the three months ended March 31, 2022, we received payments of $114,000 towards previously written-off accounts receivable, compared to $0 during the same period in 2023.

Interest Expense – Interest expense increased $533,000, or 137.4%, during the three months ended March 31, 2023, compared to the same period in 2022. The increase in interest expense was due to increases in interest rates on our senior debt with CoBank and borrowings from our lines of credit. As of March 31, 2023, the interest rate on our revolving long-term loan was 7.35%, compared to 2.90% as of March 31, 2022. The average debt level, in addition, increased from $54.7 million during the three-month period ended March 31, 2022 to $60.3 million for the same period in 2023 mainly due to higher commodity prices and payments for capital improvements and investments in related parties.

Other Non-Operating Income – Other non-operating income (expense), including patronage dividend income, decreased $677,000 during the three-month period ended March 31, 2023, compared to the same period in 2022. The decrease in other non-operating income was due to a $727,000 change in gains (losses) on our interest rate hedge instruments. During the three-month period ended March 31, 2023, losses on interest rate hedges totaled $157,000, compared to a $570,000 gain during the same period in 2022.

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Net Income/Loss – During the three-month period ended March 31, 2023, we generated a net income of $22.7 million, compared to $18.3 million for the same period in 2022. The $4.4 million increase was primarily attributable to an increase in gross profit.

LIQUIDITY AND CAPITAL RESOURCES

Our primary sources of liquidity are cash provided by operations and borrowings under our two revolving lines of credit which are discussed below under “Indebtedness.” On March 31, 2023, we had working capital, defined as current assets less current liabilities, of approximately $53.6 million, compared to $36.8 million on March 31, 2022. Working capital increased between periods primarily due to increases in net income during that period. Based on current plans, we will continue funding our capital and operating needs from cash from operations and revolving lines of credit.

Comparison of the Three Months Ended March 31, 2023 and 2022

	2023		2022
Net cash provided by (used for) operating activities	$	(15,629,602)	$	(35,857,338)
Net cash provided by (used for) investing activities	(7,363,416)		(733,524)
Net cash provided by (used for) financing activities	22,818,866		36,361,121

Cash Flows Used For Operations

The $20.2 million decrease in cash flows used for operating activities was largely due to a $34.4 million change in inventory, $9.8 million in margin deposits, $8.2 million change in accounts receivable, and a $4.4 million increase in net income. During the three-month period ended March 31, 2023, our inventories decreased by $6.6 million, compared to a $27.8 million increase during the same period in 2022. Margin deposits decreased $2.4 million during the three months ended March 31, 2023, compared to a $7.4 million increase in 2022. Accounts receivable also decreased $1.9 million during the three months ended March 31, 2023, compared to a $6.2 million increase during the same period in 2022. Partially offsetting changes in inventory, margin deposits, accounts receivable, and net income, was a $21.8 million increase in net gains on derivative activities and a $19.9 million decrease in accrued commodity purchases. During the three months ended March 31, 2023, we recognized $14.5 million in gains on derivative activities, compared to $7.3 million in losses during the same period in 2022. Accrued commodity purchases decreased $37.9 million during the three-month period ended March 31, 2023, compared to $18.0 million during the same period in 2022.

Cash Flows Used For Investing Activities

The $6.6 million increase in cash flows used for investing activities during the three-month period ended March 31, 2023, compared to the same period in 2022, was largely due to a $5.9 million increase in expenditures towards investments in related parties. During the three months ended March 31, 2023, we spent $5.9 million on investments in High Plains Partners, LLC, a related party, compared to $0 during the same period in 2022.

Cash Flows Provided By (Used For) Financing Activities

The $13.5 million decrease in cash flows provided by financing activities was principally due to a $19.2 million increase in cash distributions to our members during the three-month period ended March 31, 2023, compared to the same period in 2022. Partially offsetting the decrease was a $6.5 million increase in net proceeds on borrowings. During the three months ended March 31, 2023, net proceeds on borrowings increased $63.4 million, compared to $56.9 million during the same period in 2022.

Indebtedness

We have two lines of credit with CoBank, our primary lender, to meet the short and long-term needs of our operations. The first credit line is a revolving long-term loan. Under this loan, we may borrow funds as needed up to the credit line maximum, or $14.0 million, and then pay down the principal whenever excess cash is available. Repaid amounts may be borrowed up to the available credit line. The available credit line decreases by $2.0 million every six months until the credit line’s maturity on March 20, 2026. We pay a 0.40% annual commitment fee on any funds not borrowed. The principal balance outstanding on the revolving term loan was $12.0 million and $8.8 million

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as of March 31, 2023 and December 31, 2022, respectively. Under this loan, there were no additional funds available to borrow as of March 31, 2023.

The second credit line is a revolving working capital (seasonal) loan. The primary purpose of this loan is to finance our operating needs. The maximum we may borrow under this line is $85.0 million until the loan's maturity on December 1, 2023. We pay a 0.20% annual commitment fee on any funds not borrowed; however, we have the option to reduce the credit line during any given commitment period listed in the credit agreement to avoid the commitment fee. As of March 31, 2023 and December 31, 2022, the principal balance outstanding on this credit line was $60.4 million and $0.1 million, respectively, allowing us to borrow an additional $24.6 million as of March 31, 2023.

Both the revolving and seasonal loans with CoBank are set up with a variable rate option. The variable rate is set daily by CoBank. We also have a fixed rate option on both loans, allowing us to fix rates for any period between one day and the entire commitment period. The annual interest rate on the revolving term loan was 7.35% and 6.85% as of March 31, 2023 and December 31, 2022, respectively. As of March 31, 2023 and December 31, 2022, the interest rate on the seasonal loan was 7.05% and 6.55%, respectively. We were in compliance with all covenants and conditions under the loans as of March 31, 2023.

OFF BALANCE SHEET FINANCING ARRANGEMENTS

We do not utilize variable interest entities or other off-balance sheet financial arrangements.

Contractual Obligations

The following table shows our contractual obligations for the periods presented:

	Payment due by period
CONTRACTUAL OBLIGATIONS	Total		Less than 1 year		1-3 years		3-5 years		More than 5 years
Long-Term Debt Obligations (1)	$	13,325,000	$	4,750,000	$	8,575,000	$	—	$	—
Operating Lease Obligations	37,051,000		4,517,000		8,315,000		7,091,000		17,128,000
Totals	$	50,376,000	$	9,267,000	$	16,890,000	$	7,091,000	$	17,128,000

(1)    Represents principal and interest payments on our notes payable, which are included on our Balance Sheet.

RECENT ACCOUNTING PRONOUNCEMENTS

See Note 1 of our Financial Statements under Part I, Item 1, for a discussion on the impact, if any, of the recently pronounced accounting standards.

CRITICAL ACCOUNTING POLICIES AND ESTIMATES

There have been no material changes to our critical accounting policies and estimates from those set forth in our Annual Report on Form 10-K for the year ended December 31, 2022.

Item 3.    Quantitative and Qualitative Disclosures About Market Risk.

Commodities Risk & Risk Management. To reduce the price change risks associated with holding fixed price commodity positions, we generally take opposite and offsetting positions by entering into commodity futures contracts (either a straight or options futures contract) on a regulated commodity futures exchange, the Chicago Board of Trade. While hedging activities reduce the risk of loss from changing market prices, such activities also limit the gain potential which otherwise could result from these significant fluctuations in market prices. Our policy is generally to maintain a hedged position within limits, but we can be long or short at any time. Our profitability is primarily derived from margins on soybeans processed, not from hedging transactions. Our management does not

22

anticipate that hedging activities will have a significant impact on future operating results or liquidity. Hedging arrangements do not protect against nonperformance of a cash contract.

At any one time, our inventory and purchase contracts for delivery to our facility may be substantial. We have risk management policies and procedures that include net position limits. They are defined by commodity and include both trader and management limits. This policy and procedure triggers a review by management when any trader is outside of position limits. The position limits are reviewed at least annually with the board of managers. We monitor current market conditions and may expand or reduce the limits in response to changes in those conditions.

An adverse change in market prices would not materially affect our profitability since we generally take opposite and offsetting positions by entering into commodity futures and forward contracts as economic hedges of price risk.

Foreign Currency Risk. We conduct essentially all of our business in U.S. dollars and have minimal direct risk regarding foreign currency fluctuations. Foreign currency fluctuations do, however, impact the ability of foreign buyers to purchase U.S. agricultural products and the competitiveness of and demand for U.S. agricultural products compared to the same products offered by foreign suppliers.

An adverse change in market prices would not materially affect our profitability since we generally take opposite and offsetting positions by entering into commodity futures and forward contracts as economic hedges of price risk.

Interest Rate Risk. We manage exposure to interest rate changes by using variable rate loan agreements with fixed rate options. Long-term loan agreements can utilize the fixed option through maturity; however, the revolving ability to pay down and borrow back would be eliminated once the funds were fixed.

As of March 31, 2023, we had $0 in fixed rate debt outstanding and $97.0 million of variable rate lines of credit. Interest rate changes impact the amount of our interest payments and, therefore, our future earnings and cash flows. Assuming other variables remain constant, a 1.0% increase in interest rates on our variable rate debt could have an estimated impact on profitability of approximately $970,000 per year.

Item 4.    Controls and Procedures.

Evaluation of Disclosure Controls and Procedures. Based on their evaluation as of the end of the period covered by this quarterly report on Form 10-Q, our principal executive officer and principal financial officer have concluded that our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) of the Securities Exchange Act of 1934) are effective to ensure that information required to be disclosed by us in reports that we file or submit under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the time periods specified in Securities and Exchange Commission rules and forms.

Changes in Internal Control Over Financial Reporting. There were no changes to our internal controls over financial reporting that materially affected, or is reasonably likely to materially affect, our internal controls over financial reporting during the quarter ended March 31, 2023.

PART II – OTHER INFORMATION

Item 1.    Legal Proceedings.

From time to time in the ordinary course of our business, we may be named as a defendant in legal proceedings related to various issues, including without limitation, workers’ compensation claims, tort claims, or contractual dispute. We carry insurance that provides protection against general commercial liability claims, claims against our directors, officer and employees, business interruption, automobile liability, and workers' compensation. We are not currently involved in any material legal proceedings and are not aware of any potential claims.

Item 1A. Risk Factors.

During the quarter ended March 31, 2023, there were no material changes to the Risk Factors disclosed in Item 1A (Part I) of our 2022 Annual Report on Form 10-K.

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Item 2.    Unregistered Sales of Equity Securities and Use of Proceeds.

None.

Item 3.    Defaults Upon Senior Securities.

None.

Item 4.    Mine Safety Disclosures.

None.

Item 5.    Other Information.

None.

Item 6.    Exhibits. 

Exhibit Number	Description
3.1(i)	Articles of Organization (1)
3.1(ii)	Operating Agreement, as amended (2)
3.1(iii)	Articles of Amendment to Articles of Organization (3)
4.1	Form of Class A Unit Certificate (4)
31.1	Rule 13a-14(a)/15d-14(a) Certification by Chief Executive Officer
31.2	Rule 13a-14(a)/15d-14(a) Certification by Chief Financial Officer
32.1	Section 1350 Certification by Chief Executive Officer
32.2	Section 1350 Certification by Chief Financial Officer

____________________________________________________________________________

(1) Incorporated by reference from Appendix B to the information statement/prospectus filed as a part of the issuer’s Registration Statement on Form S-4 (File No. 333-75804).

(2) Incorporated by reference from the same numbered exhibit to the issuer’s Form 8-K filed on June 21, 2022.

(3) Incorporated by reference from the same numbered exhibit to the issuer’s Form 10-Q filed on August 14, 2002.

(4) Incorporated by reference from the same numbered exhibit to the issuer’s Registration Statement on Form S-4 (File No. 333-75804).

SIGNATURES

In accordance with the requirements of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

			SOUTH DAKOTA SOYBEAN PROCESSORS, LLC
Dated:	May 11, 2023	By	/s/ Thomas Kersting
			Thomas Kersting, Chief Executive Officer
			(Principal Executive Officer)
Dated:	May 11, 2023	By	/s/ Mark Hyde
			Mark Hyde, Chief Financial Officer
			(Principal Financial Officer)

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EX-31.1

Exhibit 31.1

Certification

I, Thomas Kersting, certify that:

1.I have reviewed the report on Form 10-Q of South Dakota Soybean Processors, LLC for the quarter ended March 31, 2023;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in the Exchange Act Rules 13a-15(f) and 15(d)-15(f)) for the registrant and have:

a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c.Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d.Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting;

5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial data; and

b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: May 11, 2023

/s/ Thomas Kersting

Thomas Kersting

Chief Executive Officer

(Principal Executive Officer)

EX-31.2

Exhibit 31.2

Certification

I, Mark Hyde, certify that:

1.I have reviewed the report on Form 10-Q of South Dakota Soybean Processors, LLC for the quarter ended March 31, 2023;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in the Exchange Act Rules 13a-15(f) and 15(d)-15(f)) for the registrant and have:

a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c.Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d.Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting;

5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial data; and

b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: May 11, 2023

/s/ Mark Hyde

Mark Hyde

Chief Financial Officer

(Principal Financial and Accounting Officer)

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of South Dakota Soybean Processors, LLC (the “Company”) on Form 10-Q for the quarter ending March 31, 2023, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Thomas Kersting, the Chief Executive Officer (Principal Executive Officer) of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of Section 13(a) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company as of March 31, 2023 (the last date of the period covered by the Report).

Dated:	May 11, 2023	By	/s/ Thomas Kersting
			Thomas Kersting, Chief Executive Officer
			(Principal Executive Officer)

EX-32.2

Exhibit 32.2

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of South Dakota Soybean Processors, LLC (the “Company”) on Form 10-Q for the quarter ending March 31, 2023, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Mark Hyde, the Chief Financial Officer (Principal Financial and Accounting Officer) of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of Section 13(a) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company as of March 31, 2023 (the last date of the period covered by the Report).

Dated:	May 11, 2023	By	/s/ Mark Hyde
			Mark Hyde, Chief Financial Officer
			(Principal Financial and Accounting Officer)

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Cover Page - shares	3 Months Ended
	Mar. 31, 2023	May 11, 2023
Cover [Abstract]
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2023
Document Transition Report	false
Entity File Number	000-50253
Entity Registrant Name	SOUTH DAKOTA SOYBEAN PROCESSORS LLC
Entity Incorporation, State or Country Code	SD
Entity Tax Identification Number	46-0462968
Entity Address, Address Line One	100 Caspian Ave
Entity Address, Address Line Two	PO Box 500
Entity Address, City or Town	Volga
Entity Address, State or Province	SD
Entity Address, Postal Zip Code	57071
City Area Code	605
Local Phone Number	627-9240
Entity Common Stock, Shares Outstanding		30,411,500
Entity Central Index Key	0001163609
Current Fiscal Year End Date	--12-31
Document Type	10-Q
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q1
Amendment Flag	false
Entity Filer Category	Non-accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes

XML

Condensed Consolidated Balance Sheets - USD ($)	Mar. 31, 2023	Dec. 31, 2022
Assets
Cash and cash equivalents	$ 692,547	$ 866,699
Trade accounts receivable	41,575,594	43,517,754
Inventories	127,615,183	134,246,154
Commodity derivative instruments	15,879,106	10,950,831
Margin deposits	3,220,204	5,603,930
Prepaid expenses	2,520,958	2,364,362
Total current assets	191,503,592	197,549,730
Property and equipment	142,033,176	140,903,867
Less accumulated depreciation	(67,396,150)	(66,343,898)
Total property and equipment, net	74,637,026	74,559,969
Other assets
Investments in related parties	21,917,466	14,576,910
Investments in cooperatives	1,737,862	1,705,549
Right-of-use lease asset, net	30,861,084	22,708,362
Other Assets, Noncurrent	96,250	96,250
Total other assets	54,612,662	39,087,071
Total assets	320,753,280	311,196,770
Current liabilities
Excess of outstanding checks over bank balance	14,403,535	18,504,251
Current maturities of long-term debt	4,000,000	0
Note payable - seasonal loan	60,400,891	138,165
Current operating lease liabilities	3,007,006	2,632,995
Accounts payable	2,579,168	2,245,339
Accrued commodity purchases	32,889,307	70,744,667
Commodity derivative instruments	15,136,283	20,010,772
Accrued expenses	3,861,455	6,062,608
Accrued interest	452,032	135,081
Deferred liabilities - current	1,210,244	1,074,059
Total current liabilities	137,939,921	121,547,937
Long-term liabilities
Long-term debt, net of current maturities and unamortized debt issuance costs	7,997,560	8,845,683
Long-term operating lease liabilities	25,005,864	17,168,224
Deferred liabilities	22,547	96,250
Total long-term liabilities	33,025,971	26,110,157
Commitments and contingencies (Notes 6, 7, 8, and 13)
Members' equity
Total liabilities and members' equity	320,753,280	311,196,770
Capital Unit, Class A
Members' equity
Class A Units, no par value, 30,411,500 units issued and     outstanding at March 31, 2023 and December 31, 2022	$ 149,787,388	$ 163,538,676

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Condensed Consolidated Balance Sheets [Parenthetical] - Capital Unit, Class A - shares	Mar. 31, 2023	Dec. 31, 2022
Common stock, shares issued	30,411,500	30,411,500
Common stock, shares outstanding	30,411,500	30,411,500

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Condensed Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Net revenues	$ 171,913,308	$ 171,724,126
Cost of revenues:
Production	10,718,977	8,997,876
Brokerage fees	189,280	170,393
Total cost of revenues	147,269,737	152,914,021
Gross profit	24,643,571	18,810,105
Operating expenses:
Administration	1,577,952	1,398,466
Operating income	23,065,619	17,411,639
Other income (expense):
Interest expense	(920,108)	(387,560)
Other non-operating income (expense)	(96,046)	574,161
Patronage dividend income	693,047	699,595
Total other income (expense)	(323,107)	886,196
Net income	$ 22,742,512	$ 18,297,835
Basic and Diluted Loss Per Capital Unit [Abstract]
Earnings Per Share, Basic	$ 0.75	$ 0.60
Weighted average number of capital units outstanding for calculation of basic and diluted earnings per capital unit (in shares)	30,411,500	30,419,000
Product
Cost of revenues:
Cost of products and services	$ 124,238,702	$ 132,866,162
Freight and rail
Cost of revenues:
Cost of products and services	$ 12,122,778	$ 10,879,590

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Condensed Statement of Changes in Members' Equity Statement - USD ($)	Total	Capital Unit, Class A
Beginning Balances (in shares) at Dec. 31, 2021		30,419,000
Beginning Balances at Dec. 31, 2021		$ 113,414,905
Net income	$ 18,297,835	$ 18,297,835
Distribution to members	(17,338,830)
Ending Balances (in shares) at Mar. 31, 2022		30,419,000
Ending Balances at Mar. 31, 2022		$ 114,373,910
Beginning Balances (in shares) at Dec. 31, 2022		30,411,500
Beginning Balances at Dec. 31, 2022		$ 163,538,676
Net income	22,742,512	22,742,512
Distribution to members	$ (36,493,800)	$ (36,493,800)
Ending Balances (in shares) at Mar. 31, 2023		30,411,500
Ending Balances at Mar. 31, 2023		$ 149,787,388

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Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Operating activities
Net income	$ 22,742,512	$ 18,297,835
Charges and credits to net income not affecting cash:
Depreciation and amortization	1,415,296	1,386,716
Net (gain) loss recognized on derivative activities	(14,483,613)	7,263,904
Loss (gain) on sale of property and equipment	(31,853)	4,381
Non-cash patronage dividends	(32,313)	(145,749)
Change in current assets and liabilities	(25,239,631)	(62,664,425)
Net cash provided by (used for) operating activities	(15,629,602)	(35,857,338)
Investing activities
Purchase of investments	5,904,137	0
Proceeds from sales of property and equipment	100,000	0
Purchase of property and equipment	(1,559,279)	(733,524)
Net cash provided by (used for) investing activities	(7,363,416)	(733,524)
Financing activities
Change in excess of outstanding checks over bank balances	(4,100,716)	(3,214,188)
Net proceeds from seasonal borrowings	60,262,726	57,816,612
Distributions to members	(36,493,800)	(17,338,830)
Proceeds from long-term debt	6,581,850	4,224,724
Principal payments on long-term debt	(3,431,194)	(5,127,197)
Net cash provided by (used for) financing activities	22,818,866	36,361,121
Net change in cash and cash equivalents	(174,152)	(229,741)
Cash and cash equivalents, beginning of period	866,699	833,738
Cash and cash equivalents, end of period	692,547	603,997
Supplemental disclosures of cash flow information
Interest	603,157	283,066
Income taxes	0	0
Soybean meal contributed as investment in related party	$ 1,436,420	$ 0

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Principal Activity and Significant Accounting Policies

3 Months Ended

Mar. 31, 2023

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Principal Activity and Significant Accounting Policies

Principal Activity and Significant Accounting Policies

The unaudited condensed financial statements contained herein have been prepared pursuant to the rules and regulations of the Securities Exchange Commission. Certain information and note disclosures normally included in annual financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to those rules and regulations, although South Dakota Soybean Processors, LLC (the “Company”, “LLC”, “we”, “our”, or “us”) believes that the disclosures made are adequate to make the information not misleading.

In the opinion of management, all normal recurring adjustments considered necessary for a fair presentation have been included in the accompanying condensed financial statements. The results of operations and cash flows for interim periods are not necessarily indicative of results for a full year due in part to the seasonal nature of some of the Company’s businesses. The balance sheet data as of December 31, 2022 has been derived from audited financial statements but does not include all disclosures required by accounting principles generally accepted in the United States of America.

These statements should be read in conjunction with the financial statements and notes thereto for the year ended December 31, 2022, included in the Company’s annual report on Form 10-K filed with the Securities and Exchange Commission ("SEC") on March 30, 2023.

Use of estimates

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

Revenue

The Company accounts for all of its revenues from contracts with customers under ASC 606, Revenue from Contracts with Customers.

The Company principally generates revenue from merchandising and transporting manufactured agricultural products used as ingredients in food, feed, energy and industrial products. Revenue is measured based on the consideration specified in the contract with a customer, and excludes any amounts collected on behalf of third parties (e.g. - taxes). The Company follows a policy of recognizing revenue at a single point in time when it satisfies its performance obligation by transferring control over a product to a customer. Control transfer typically occurs when goods are shipped from our facilities or at other predetermined control transfer points (for instance, destination terms). Shipping and handling costs related to contracts with customers for sale of goods are accounted for as a fulfillment activity and are included in cost of revenues. Accordingly, amounts billed to customers for such costs are included as a component of revenues.

Payments received in advance to the transfer of goods, or "contract liabilities", are included in "Deferred liabilities - current" on the Company's condensed balance sheets. These customer prepayments totaled $1,210,244 and $1,074,059 as of March 31, 2023 and December 31, 2022, respectively. Of the $1,074,059 balance as of December 31, 2022, the Company recognized $723,453 as revenues for the three months ended March 31, 2023. Of the $1,347,409 customer prepayments as of December 31, 2021, the Company recognized $1,340,132 of contract liabilities as revenues during the three months ended March 31, 2022.

The following table presents a disaggregation of revenue from contracts with customers for the three month periods ended March 31, 2023 and 2022, by product type:

	2023		2022
Soybean meal and hulls	$	97,123,852	$	87,424,050
Soybean oil and oil byproducts	74,789,456		84,300,076
Totals	$	171,913,308	$	171,724,126

Recent accounting pronouncements

Any recent accounting pronouncements are not expected to have a material impact on our condensed financial statements.

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Accounts Receivable

3 Months Ended

Mar. 31, 2023

Receivables [Abstract]

Accounts Receivable

Accounts Receivable

Accounts receivable are considered past due when payments are not received on a timely basis in accordance with the Company’s credit terms, which is generally 30 days from invoice date. Accounts considered uncollectible are written off. The Company’s estimate of the allowance for credit losses is based on historical experience, its evaluation of the current status of receivables, and unusual circumstances, if any.

The following table presents the aging analysis of trade receivables as of March 31, 2023 and December 31, 2022:

	March 31, 2023		December 31, 2022
Past due:
Less than 30 days past due	$	8,871,435	$	13,779,760
30-60 days past due	395,774		1,780,664
60-90 days past due	363,178		182,146
Greater than 90 days past due	41,034		45,830
Total past due	9,671,421		15,788,400
Current	31,904,173		27,729,354
Totals	$	41,575,594	$	43,517,754

The following table provides information regarding the Company's allowance for credit losses as of March 31, 2023 and December 31, 2022:

	March 31, 2023		December 31, 2022
Balances, beginning of period	$	—	$	—
Amounts charged (credited) to costs and expenses	—		(115,208)
Additions (deductions)	—		115,208
Balances, end of period	$	—	$	—

In general, cash received is applied to the oldest outstanding invoice first, unless payment is for a specified invoice. The Company, on a case by case basis, may charge a late fee of 1.5% per month on past due receivables.

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Inventories

3 Months Ended

Mar. 31, 2023

Inventory Disclosure [Abstract]

Inventories

Inventories

The Company’s inventories consist of the following at March 31, 2023 and December 31, 2022:

	March 31, 2023		December 31, 2022
Finished goods	$	63,553,506	$	62,619,087
Raw materials	63,497,250		71,001,459
Supplies & miscellaneous	564,427		625,608
Totals	$	127,615,183	$	134,246,154

Finished goods and raw materials are valued at estimated market value, which approximates net realizable value. Supplies and other inventories are stated at the lower of cost or net realizable value.

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Investments in Related Parties

3 Months Ended

Mar. 31, 2023

Investments, Debt and Equity Securities [Abstract]

Investments in Related Parties

Investments in Related Parties

The Company’s investments in related parties consist of the following at March 31, 2023 and December 31, 2022:

	March 31, 2023		December 31, 2022
High Plains Partners, LLC	$	8,280,316	$	2,376,180
Prairie AquaTech, LLC	1,553,727		1,553,727
Prairie AquaTech Investments, LLC	5,000,000		5,000,000
Prairie AquaTech Manufacturing, LLC	7,083,423		5,647,003
Totals	$	21,917,466	$	14,576,910

The Company measures its investments in Prairie AquaTech, LLC, Prairie AquaTech Investments, LLC, Prairie AquaTech Manufacturing, LLC and High Plains Partners, LLC at their cost less any impairment plus or minus any observable price changes in orderly transactions since these equity investments do not have readily determinable fair values.

The Company invested $1,436,420 and $0 of soybean meal in Prairie AquaTech Manufacturing, LLC for the three months ended March 31, 2023 and 2022, respectively.

In February 2022, the Company announced its plans to construct a multi-seed processing plant near Mitchell, South Dakota. In September 2022, the Company entered into a capital contribution and commitment agreement with High Plains Partners, LLC. Per the agreement, the Company will transfer all rights, title and interest to all of the tangible and intangible development rights, including engineering, permitting, studies, records, etc., totaling $5.0 million held by the Company in exchange for 2,615 Class B units in High Plains Partners, LLC. The Company also committed to invest at least another $70.0 million for 17,169 Class B capital units in the entity. As of March 31, 2023, the Company had contributed $8,280,316 towards the project. Operation of the facility is expected to begin in late 2025.

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Property and Equipment

3 Months Ended

Mar. 31, 2023

Property, Plant and Equipment [Abstract]

Property and Equipment

Property and Equipment

The following is a summary of the Company's property and equipment at March 31, 2023 and December 31, 2022:

	2023						2022
	Cost		Accumulated Depreciation		Net		Net
Land	$	516,326	$	—	$	516,326	$	516,326
Land improvements	2,695,462		(1,110,726)		1,584,736		1,625,212
Buildings and improvements	26,288,868		(11,454,054)		14,834,814		15,001,754
Machinery and equipment	95,048,269		(53,266,772)		41,781,497		42,924,227
Railroad cars	10,679,356		(532,038)		10,147,318		10,200,714
Company vehicles	151,682		(129,630)		22,052		26,226
Furniture and fixtures	1,528,219		(902,930)		625,289		394,353
Construction in progress	5,124,994		—		5,124,994		3,871,157
Totals	$	142,033,176	$	(67,396,150)	$	74,637,026	$	74,559,969

Depreciation of property and equipment was $1,414,076 and $1,385,495 for the three months ended March 31, 2023 and 2022, respectively.

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Note Payable - Seasonal Loan	3 Months Ended
	Mar. 31, 2023
Notes Payable Seasonal Loan [Abstract]
Note Payable - Seasonal Loan	Note Payable – Seasonal LoanThe Company has entered into a revolving credit agreement with CoBank which expires December 1, 2023. The purpose of the credit agreement is to finance the operating needs of the Company. Under this agreement, the Company could borrow up to $85 million, and advances on the revolving credit agreement are secured. Interest accrues at a variable rate (7.05% at March 31, 2023). The Company pays a 0.20% annual commitment fee on any funds not borrowed. There were advances outstanding of $60,400,891 and $138,165 at March 31, 2023 and December 31, 2022, respectively. The remaining available funds to borrow under the terms of the revolving credit agreement were $24.6 million as of March 31, 2023.

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Long-Term Debt

3 Months Ended

Mar. 31, 2023

Debt Disclosure [Abstract]

Long-Term Debt

Long-Term Debt

The following is a summary of the Company's long-term debt at March 31, 2023 and December 31, 2022:

	March 31, 2023		December 31, 2022
Revolving term loan from CoBank, interest at variable rates (7.35% and 6.85% at March 31, 2023 and December 31, 2022, respectively), secured by substantially all property and equipment. Loan matures March 20, 2026.	$	12,000,000	$	8,849,344
Less current maturities	(4,000,000)		—
Less debt issuance costs, net of amortization of $21,560 and $20,339 as of March 31, 2023 and December 31, 2022, respectively	(2,440)		(3,661)
Total long-term debt	$	7,997,560	$	8,845,683

The Company entered into an agreement as of April 27, 2022 with CoBank to amend and restate its Credit Agreement, which includes both the revolving term and seasonal loans. Under the terms and conditions of the Credit Agreement, CoBank agreed to make advances to the Company for up to $16,000,000 on the revolving term loan with a variable effective interest rate of 7.35%. The amount available for borrowing on the revolving term loan will decrease by $2,000,000 every six months until the loan's maturity date of March 20, 2026. The Company pays a 0.40% annual commitment fee on any funds not borrowed. The debt issuance costs of $24,000 paid by the Company will be amortized over the term of loan. The principal balance outstanding on the revolving term loan was

$12,000,000 and $8,849,344 as of March 31, 2023 and December 31, 2022, respectively. There were no remaining commitments available to borrow on the revolving term loan as of March 31, 2023.

Under this agreement, the Company is subject to compliance with standard financial covenants and the maintenance of certain financial ratios. The Company was in compliance with all covenants and conditions with CoBank as of March 31, 2023.

The following are minimum principal payments on long-term debt obligations for the twelve-month periods ended March 31:

2024	$	4,000,000
2025	4,000,000
2026	4,000,000
Total	$	12,000,000

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Operating Leases (Notes)

3 Months Ended

Mar. 31, 2023

Leases [Abstract]

Operating Leases

Operating Leases

The Company has several operating leases for railcars. These leases have terms ranging from 3-12 years and most do not have renewal terms provided. The leases require the Company to maintain the condition of the railcars, restrict the use of the railcars to specified products, such as soybean meal, hulls or oil, limit usage to the continental United States, Canada or Mexico, require approval to sublease to other entities, and require the Company's submission of its financial statements. Lease expense for all railcars was $880,151 and $664,488 for the three months ended March 31, 2023 and 2022, respectively.

The following is a schedule of the Company's operating leases for railcars as of March 31, 2023:

Lessor	Quantity of Railcars	Commencement Date	Maturity Date	Monthly Payment
American Railcar Leasing	13	6/1/2021	5/31/2024	$	7,150
Andersons Railcar Leasing Co.	10	7/1/2018	6/30/2023	5,000
Andersons Railcar Leasing Co.	20	7/1/2019	6/30/2026	11,300
Andersons Railcar Leasing Co.	15	11/1/2021	10/31/2026	8,250
Farm Credit Leasing	87	9/1/2020	8/31/2032	34,929
Farm Credit Leasing	8	6/1/2021	5/31/2033	5,966
Farm Credit Leasing	9	10/1/2021	9/30/2033	4,624
Farm Credit Leasing	23	7/1/2022	6/30/2034	13,863
Farm Credit Leasing	30	8/1/2022	7/31/2034	30,422
Farm Credit Leasing	20	10/1/2022	9/30/2034	21,668
Farm Credit Leasing	100	4/1/2023	3/31/2035	81,466
GATX Corporation	14	7/1/2020	6/30/2024	4,200
Trinity Capital	29	11/1/2020	10/31/2023	17,255
Trinity Capital	20	11/1/2020	10/31/2023	11,900
Trinity Capital	2	6/1/2021	5/31/2026	980
Wells Fargo Rail	109	3/1/2022	2/28/2027	51,775
Wells Fargo Rail	7	5/1/2022	4/30/2027	2,765
Wells Fargo Rail	15	5/1/2022	4/30/2027	5,925
Wells Fargo Rail	105	1/1/2023	12/31/2029	49,875
	636			$	369,313

The Company also has a number of other operating leases for machinery and equipment. These leases have terms ranging from 3-7 years; however, most of these leases have automatic renewal terms. These leases require monthly payments of $3,929. Rental expense under these other operating leases was $11,219 and $46,416 for the three-month periods ended March 31, 2023 and 2022, respectively.

On March 19, 2020, the Company entered into an agreement with an entity in the western United States to provide storage and handling services for the Company's soybean meal. The Company paid the entity $3,300,000 after the entity's construction of additional storage and handling facilities. The agreement began May 1, 2021 and will mature on April 30, 2027 but includes an additional seven-year renewal period at the sole discretion of the Company. Rental expense under this agreement was $58,929 and $58,929 for the three months ended March 31, 2023 and 2022, respectively.

Operating leases are included in right-to-use lease assets, current operating lease liabilities, and long-term lease liabilities on the Company's condensed balance sheets. These assets and liabilities are recognized at the commencement date based on the present value of remaining lease payments over the lease term using the Company's secured incremental borrowing rates or implicit rates, when readily determinable. Short-term operating leases, which have an initial term of 12 months or less, are not recorded on the condensed balance sheet.

Lease expense for these operating leases is recognized on a straight-line basis over the lease terms. The components of lease costs recognized within our condensed statements of operations for the three-month periods ended March 31, 2023 and 2022 were as follows:

	2023		2022
Cost of revenues - Freight and rail	$	880,151	$	664,488
Cost of revenues - Production	65,642		99,013
Administration expenses	4,506		6,332
Total operating lease costs	$	950,299	$	769,833

The following summarizes the supplemental cash flow information for the three-month periods ended March 31, 2023 and 2022:

	2023		2022
Cash paid for amounts included in measurement of lease liabilities	$	875,288	$	749,933
Supplemental non-cash information:
Right-of-use assets obtained in exchange for lease liabilities	$	8,914,885	$	3,386,523

The following summarizes the weighted-average remaining lease term and weighted-average discount rate as of March 31, 2023:

Weighted-average remaining lease-term - operating leases (in years)	9.8
Weighted-average discount rate - operating leases	4.2	%

The following is a maturity analysis of the undiscounted cash flows of the operating lease liabilities as of March 31, 2023:

	Railcars		Other		Total
Twelve-month periods ended March 31:
2024	$	4,240,974	$	40,539	$	4,281,513
2025	3,912,589		30,038		3,942,627
2026	3,885,689		14,790		3,900,479
2027	3,681,164		10,256		3,691,420
2028	2,922,439		5,742		2,928,181
Thereafter	15,458,688		—		15,458,688
Total lease payments	34,101,543		101,365		34,202,908
Less amount of lease payments representing interest	(6,184,265)		(5,773)		(6,190,038)
Total present value of lease payments	$	27,917,278	$	95,592	$	28,012,870

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Member Distribution	3 Months Ended
	Mar. 31, 2023
Member Distribution [Abstract]
Member Distribution	Member DistributionOn January 31, 2023, the Company’s Board of Managers approved a cash distribution of approximately $36.5 million, or $1.20 per capital unit. The distribution was paid in accordance with the Company’s operating agreement and distribution policy on February 2, 2023.

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Derivative Instruments and Hedging Activities

3 Months Ended

Mar. 31, 2023

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instruments and Hedging Activities

Derivative Instruments and Hedging Activities

In the ordinary course of business, the Company enters into contractual arrangements as a means of managing exposure to changes in commodity prices and, occasionally, foreign exchange and interest rates. The Company’s derivative instruments primarily consist of commodity futures, options and forward contracts, and interest rate swaps, caps and floors. Although these contracts may be effective economic hedges of specified risks, they are not designated as, nor accounted for, as hedging instruments. These contracts are recorded on the Company’s condensed balance sheets at fair value as discussed in Note 11, Fair Value.

As of March 31, 2023 and December 31, 2022, the value of the Company’s open futures, options and forward contracts was $742,823 and $(9,059,941), respectively.

		As of March 31, 2023
	Balance Sheet Classification	Asset Derivatives		Liability Derivatives
Derivatives not designated as hedging instruments:
Commodity contracts	Current Assets/Liabilities	$	14,820,737	$	14,954,846
Foreign exchange contracts	Current Assets/Liabilities	46,443		38,622
Interest rate caps and floors	Current Assets/Liabilities	1,011,926		142,815
Totals		$	15,879,106	$	15,136,283

		As of December 31, 2022
	Balance Sheet Classification	Asset Derivatives		Liability Derivatives
Derivatives not designated as hedging instruments:
Commodity contracts	Current Assets/Liabilities	$	9,716,111	$	19,820,839
Foreign exchange contracts	Current Assets/Liabilities	77,983		53,267
Interest rate caps and floors	Current Assets/Liabilities	1,156,737		136,666
Totals		$	10,950,831	$	20,010,772

During the three-month periods ended March 31, 2023 and 2022, net realized and unrealized gains (losses) on derivative transactions were recognized in the condensed statements of operations as follows:

	Net Gain (Loss) Recognized  on Derivative Activities for the
	Three Months Ended March 31,
	2023		2022
Derivatives not designated as hedging instruments:
Commodity contracts	$	13,826,366	$	(7,832,140)
Foreign exchange contracts	814,321		(2,228)
Interest rate swaps, caps and floors	(157,074)		570,464
Totals	$	14,483,613	$	(7,263,904)

The Company recorded gains (losses) in cost of goods sold related to its commodity derivative instruments of $14,483,613 and $(7,263,904) for the three-month periods ended March 31, 2023 and 2022, respectively.

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Fair Value

3 Months Ended

Mar. 31, 2023

Fair Value Disclosures [Abstract]

Fair Value

Fair Value

ASC 820, Fair Value Measurements and Disclosures, defines fair value, establishes a comprehensive framework for measuring fair value and expands disclosures which are required about fair value measurements. Specifically, this guidance establishes a hierarchy prioritizing the inputs to valuation techniques, giving the highest priority to quoted prices in active markets for identical assets and liabilities and the lowest priority to unobservable value inputs. The three levels of hierarchy and examples are as follows:

•Level 1 – Quoted prices are available in active markets for identical assets or liabilities as of the reported date. The types of assets and liabilities included in Level 1 are highly liquid and actively traded instruments with quoted prices, such as equities listed on the New York Stock Exchange and commodity derivative contracts listed on the Chicago Board of Trade (“CBOT”).

•Level 2 – Pricing inputs are other than quoted prices in active markets, but are either directly or indirectly observable as of the reported date. The types of assets and liabilities in Level 2 are typically either comparable to actively traded securities or contracts, or priced with models using highly observable inputs, such as commodity prices using forward future prices.

•Level 3 – Significant inputs to pricing that are unobservable as of the reporting date. The types of assets and liabilities included in Level 3 are those with inputs requiring significant management judgment or estimation, such as complex and subjective models and forecasts used to determine the fair value of financial transmission rights.

The following tables set forth financial assets and liabilities measured at fair value in the condensed balance sheets and the respective levels to which fair value measurements are classified within the fair value hierarchy as of March 31, 2023 and December 31, 2022:

	Fair Value as of March 31, 2023
	Level 1		Level 2		Level 3		Total
Financial assets:
Inventory	$	—	$	126,699,208	$	—	$	126,699,208
Commodity derivative instruments	$	742,823	$	—	$	—	$	742,823
Margin deposits (deficits)	$	3,220,204	$	—	$	—	$	3,220,204

	Fair Value as of December 31, 2022
	Level 1		Level 2		Level 3		Total
Financial assets:
Inventory	$	—	$	133,543,821	$	—	$	133,543,821
Commodity derivative instruments	$	(9,059,941)	$	—	$	—	$	(9,059,941)
Margin deposits	$	5,603,930	$	—	$	—	$	5,603,930

The Company enters into various commodity derivative instruments, including futures, options, swaps and other agreements. The fair value of the Company’s commodity derivatives is determined using unadjusted quoted prices for identical instruments on the CBOT. The Company estimates the fair market value of their finished goods and raw materials inventories using the market price quotations of similar forward future contracts listed on the CBOT and adjusts for the local market adjustments derived from other grain terminals in our area.

The Company considers the carrying amount of significant classes of financial instruments on the balance sheets, including cash, accounts receivable, and accounts payable, to be reasonable estimates of fair value due to their length or maturity. The fair value of the Company’s long-term debt approximates the carrying value. The interest rates on the long-term debt are similar to rates the Company would be able to obtain currently in the market.

The Company has patronage investments in other cooperatives and common and preferred stock holdings in privately held entities. There is no market for their patronage credits or the entity’s common and preferred holdings, and it is impracticable to estimate the fair value of the Company’s investments. These investments are carried on the balance sheet at original cost plus the amount of patronage earnings allocated to the Company, less any cash distributions received.

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Related Party Transactions (Notes)	3 Months Ended
	Mar. 31, 2023
Related Party Transactions [Abstract]
Related Party Transactions	Related Party TransactionsThe Company has equity investments in Prairie AquaTech, LLC, Prairie AquaTech Manufacturing, LLC and Prairie AquaTech Investments, LLC. The Company sold soybean products to Prairie AquaTech, LLC and Prairie AquaTech Manufacturing, LLC totaling $2,947,866 and $3,755,756 during the three months ended March 31, 2023 and 2022, respectively. As of March 31, 2023 and December 31, 2022, Prairie AquaTech, LLC and Prairie AquaTech Manufacturing, LLC owed the Company $0 and $1,433,551, respectively.

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Commitments and Contingencies

3 Months Ended

Mar. 31, 2023

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Contingencies

As of March 31, 2023, the Company had unpaid commitments of approximately $1,866,000 for construction and acquisition of property and equipment, all of which is expected to be incurred by March 31, 2024.

The Company has entered into an agreement with High Plains Partners, LLC (“HPP”) to commit $75.0 million into HPP to facilitate the construction of a multi-seed processing facility near Mitchell, South Dakota. The funding of the commitment is subject to several conditions.

From time to time in the ordinary course of our business, the Company may be named as a defendant in legal proceedings related to various issues, including without limitation, workers’ compensation claims, tort claims, or contractual dispute. The Company carries insurance that provides protection against general commercial liability claims, claims against our directors, officer and employees, business interruption, automobile liability, and workers' compensation. The Company is not currently involved in any material legal proceedings and are not aware of any potential claims.

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Subsequent Event	3 Months Ended
	Mar. 31, 2023
Subsequent Events [Abstract]
Subsequent Event	Subsequent EventThe Company evaluated all of its activities and concluded that no subsequent events have occurred that would require recognition in its financial statements or disclosed in the notes to its financial statements.

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Principal Activity and Significant Accounting Policies (Policies)

3 Months Ended

Mar. 31, 2023

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Use of Estimates, Policy

Use of estimates

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

Revenue, Policy

Revenue

The Company accounts for all of its revenues from contracts with customers under ASC 606, Revenue from Contracts with Customers.

The Company principally generates revenue from merchandising and transporting manufactured agricultural products used as ingredients in food, feed, energy and industrial products. Revenue is measured based on the consideration specified in the contract with a customer, and excludes any amounts collected on behalf of third parties (e.g. - taxes). The Company follows a policy of recognizing revenue at a single point in time when it satisfies its performance obligation by transferring control over a product to a customer. Control transfer typically occurs when goods are shipped from our facilities or at other predetermined control transfer points (for instance, destination terms). Shipping and handling costs related to contracts with customers for sale of goods are accounted for as a fulfillment activity and are included in cost of revenues. Accordingly, amounts billed to customers for such costs are included as a component of revenues.

Payments received in advance to the transfer of goods, or "contract liabilities", are included in "Deferred liabilities - current" on the Company's condensed balance sheets. These customer prepayments totaled $1,210,244 and $1,074,059 as of March 31, 2023 and December 31, 2022, respectively. Of the $1,074,059 balance as of December 31, 2022, the Company recognized $723,453 as revenues for the three months ended March 31, 2023. Of the $1,347,409 customer prepayments as of December 31, 2021, the Company recognized $1,340,132 of contract liabilities as revenues during the three months ended March 31, 2022.

Recent Accounting Pronouncements

Recent accounting pronouncements

Any recent accounting pronouncements are not expected to have a material impact on our condensed financial statements.

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Principal Activity and Significant Accounting Policies (Tables)

3 Months Ended

Mar. 31, 2023

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Disaggregation of Revenue

The following table presents a disaggregation of revenue from contracts with customers for the three month periods ended March 31, 2023 and 2022, by product type:

	2023		2022
Soybean meal and hulls	$	97,123,852	$	87,424,050
Soybean oil and oil byproducts	74,789,456		84,300,076
Totals	$	171,913,308	$	171,724,126

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Accounts Receivable (Tables)

3 Months Ended

Mar. 31, 2023

Receivables [Abstract]

Past Due Financing Receivables

The following table presents the aging analysis of trade receivables as of March 31, 2023 and December 31, 2022:

	March 31, 2023		December 31, 2022
Past due:
Less than 30 days past due	$	8,871,435	$	13,779,760
30-60 days past due	395,774		1,780,664
60-90 days past due	363,178		182,146
Greater than 90 days past due	41,034		45,830
Total past due	9,671,421		15,788,400
Current	31,904,173		27,729,354
Totals	$	41,575,594	$	43,517,754

Schedule of Allowance for Doubtful Accounts Receivable

The following table provides information regarding the Company's allowance for credit losses as of March 31, 2023 and December 31, 2022:

	March 31, 2023		December 31, 2022
Balances, beginning of period	$	—	$	—
Amounts charged (credited) to costs and expenses	—		(115,208)
Additions (deductions)	—		115,208
Balances, end of period	$	—	$	—

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Inventories (Tables)

3 Months Ended

Mar. 31, 2023

Inventory Disclosure [Abstract]

Schedule of Inventory, Current

The Company’s inventories consist of the following at March 31, 2023 and December 31, 2022:

	March 31, 2023		December 31, 2022
Finished goods	$	63,553,506	$	62,619,087
Raw materials	63,497,250		71,001,459
Supplies & miscellaneous	564,427		625,608
Totals	$	127,615,183	$	134,246,154

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Investments in Related Parties (Tables)

3 Months Ended

Mar. 31, 2023

Investments, Debt and Equity Securities [Abstract]

Investments in Related Parties

The Company’s investments in related parties consist of the following at March 31, 2023 and December 31, 2022:

	March 31, 2023		December 31, 2022
High Plains Partners, LLC	$	8,280,316	$	2,376,180
Prairie AquaTech, LLC	1,553,727		1,553,727
Prairie AquaTech Investments, LLC	5,000,000		5,000,000
Prairie AquaTech Manufacturing, LLC	7,083,423		5,647,003
Totals	$	21,917,466	$	14,576,910

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Property and Equipment (Tables)

3 Months Ended

Mar. 31, 2023

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment

The following is a summary of the Company's property and equipment at March 31, 2023 and December 31, 2022:

	2023						2022
	Cost		Accumulated Depreciation		Net		Net
Land	$	516,326	$	—	$	516,326	$	516,326
Land improvements	2,695,462		(1,110,726)		1,584,736		1,625,212
Buildings and improvements	26,288,868		(11,454,054)		14,834,814		15,001,754
Machinery and equipment	95,048,269		(53,266,772)		41,781,497		42,924,227
Railroad cars	10,679,356		(532,038)		10,147,318		10,200,714
Company vehicles	151,682		(129,630)		22,052		26,226
Furniture and fixtures	1,528,219		(902,930)		625,289		394,353
Construction in progress	5,124,994		—		5,124,994		3,871,157
Totals	$	142,033,176	$	(67,396,150)	$	74,637,026	$	74,559,969

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Long-Term Debt (Tables)

3 Months Ended

Mar. 31, 2023

Debt Disclosure [Abstract]

Schedule of Debt

The following is a summary of the Company's long-term debt at March 31, 2023 and December 31, 2022:

	March 31, 2023		December 31, 2022
Revolving term loan from CoBank, interest at variable rates (7.35% and 6.85% at March 31, 2023 and December 31, 2022, respectively), secured by substantially all property and equipment. Loan matures March 20, 2026.	$	12,000,000	$	8,849,344
Less current maturities	(4,000,000)		—
Less debt issuance costs, net of amortization of $21,560 and $20,339 as of March 31, 2023 and December 31, 2022, respectively	(2,440)		(3,661)
Total long-term debt	$	7,997,560	$	8,845,683

Schedule of Maturities of Long-term Debt

The following are minimum principal payments on long-term debt obligations for the twelve-month periods ended March 31:

2024	$	4,000,000
2025	4,000,000
2026	4,000,000
Total	$	12,000,000

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Operating Leases (Tables)

3 Months Ended

Mar. 31, 2023

Leases [Abstract]

Operating Leases for Railcars

The following is a schedule of the Company's operating leases for railcars as of March 31, 2023:

Lessor	Quantity of Railcars	Commencement Date	Maturity Date	Monthly Payment
American Railcar Leasing	13	6/1/2021	5/31/2024	$	7,150
Andersons Railcar Leasing Co.	10	7/1/2018	6/30/2023	5,000
Andersons Railcar Leasing Co.	20	7/1/2019	6/30/2026	11,300
Andersons Railcar Leasing Co.	15	11/1/2021	10/31/2026	8,250
Farm Credit Leasing	87	9/1/2020	8/31/2032	34,929
Farm Credit Leasing	8	6/1/2021	5/31/2033	5,966
Farm Credit Leasing	9	10/1/2021	9/30/2033	4,624
Farm Credit Leasing	23	7/1/2022	6/30/2034	13,863
Farm Credit Leasing	30	8/1/2022	7/31/2034	30,422
Farm Credit Leasing	20	10/1/2022	9/30/2034	21,668
Farm Credit Leasing	100	4/1/2023	3/31/2035	81,466
GATX Corporation	14	7/1/2020	6/30/2024	4,200
Trinity Capital	29	11/1/2020	10/31/2023	17,255
Trinity Capital	20	11/1/2020	10/31/2023	11,900
Trinity Capital	2	6/1/2021	5/31/2026	980
Wells Fargo Rail	109	3/1/2022	2/28/2027	51,775
Wells Fargo Rail	7	5/1/2022	4/30/2027	2,765
Wells Fargo Rail	15	5/1/2022	4/30/2027	5,925
Wells Fargo Rail	105	1/1/2023	12/31/2029	49,875
	636			$	369,313

Lease Cost, Supplemental Cash Flow Information and Weighted-average Lease Terms and Discount Rates

The components of lease costs recognized within our condensed statements of operations for the three-month periods ended March 31, 2023 and 2022 were as follows:

	2023		2022
Cost of revenues - Freight and rail	$	880,151	$	664,488
Cost of revenues - Production	65,642		99,013
Administration expenses	4,506		6,332
Total operating lease costs	$	950,299	$	769,833

The following summarizes the supplemental cash flow information for the three-month periods ended March 31, 2023 and 2022:

	2023		2022
Cash paid for amounts included in measurement of lease liabilities	$	875,288	$	749,933
Supplemental non-cash information:
Right-of-use assets obtained in exchange for lease liabilities	$	8,914,885	$	3,386,523

The following summarizes the weighted-average remaining lease term and weighted-average discount rate as of March 31, 2023:

Weighted-average remaining lease-term - operating leases (in years)	9.8
Weighted-average discount rate - operating leases	4.2	%

Lessee, Operating Lease, Liability, Maturity

The following is a maturity analysis of the undiscounted cash flows of the operating lease liabilities as of March 31, 2023:

	Railcars		Other		Total
Twelve-month periods ended March 31:
2024	$	4,240,974	$	40,539	$	4,281,513
2025	3,912,589		30,038		3,942,627
2026	3,885,689		14,790		3,900,479
2027	3,681,164		10,256		3,691,420
2028	2,922,439		5,742		2,928,181
Thereafter	15,458,688		—		15,458,688
Total lease payments	34,101,543		101,365		34,202,908
Less amount of lease payments representing interest	(6,184,265)		(5,773)		(6,190,038)
Total present value of lease payments	$	27,917,278	$	95,592	$	28,012,870

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Derivative Instruments and Hedging Activities (Tables)

3 Months Ended

Mar. 31, 2023

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule Of Derivatives Assets and Liabilities Not Designated As Hedging Instruments

As of March 31, 2023 and December 31, 2022, the value of the Company’s open futures, options and forward contracts was $742,823 and $(9,059,941), respectively.

		As of March 31, 2023
	Balance Sheet Classification	Asset Derivatives		Liability Derivatives
Derivatives not designated as hedging instruments:
Commodity contracts	Current Assets/Liabilities	$	14,820,737	$	14,954,846
Foreign exchange contracts	Current Assets/Liabilities	46,443		38,622
Interest rate caps and floors	Current Assets/Liabilities	1,011,926		142,815
Totals		$	15,879,106	$	15,136,283

		As of December 31, 2022
	Balance Sheet Classification	Asset Derivatives		Liability Derivatives
Derivatives not designated as hedging instruments:
Commodity contracts	Current Assets/Liabilities	$	9,716,111	$	19,820,839
Foreign exchange contracts	Current Assets/Liabilities	77,983		53,267
Interest rate caps and floors	Current Assets/Liabilities	1,156,737		136,666
Totals		$	10,950,831	$	20,010,772

Schedule Of Derivative Instruments, Net Realized and Unrealized Gain (Loss) On Derivatives Not Designated As Hedging Instruments

During the three-month periods ended March 31, 2023 and 2022, net realized and unrealized gains (losses) on derivative transactions were recognized in the condensed statements of operations as follows:

	Net Gain (Loss) Recognized  on Derivative Activities for the
	Three Months Ended March 31,
	2023		2022
Derivatives not designated as hedging instruments:
Commodity contracts	$	13,826,366	$	(7,832,140)
Foreign exchange contracts	814,321		(2,228)
Interest rate swaps, caps and floors	(157,074)		570,464
Totals	$	14,483,613	$	(7,263,904)

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Fair Value of Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2023

Fair Value Disclosures [Abstract]

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

The following tables set forth financial assets and liabilities measured at fair value in the condensed balance sheets and the respective levels to which fair value measurements are classified within the fair value hierarchy as of March 31, 2023 and December 31, 2022:

	Fair Value as of March 31, 2023
	Level 1		Level 2		Level 3		Total
Financial assets:
Inventory	$	—	$	126,699,208	$	—	$	126,699,208
Commodity derivative instruments	$	742,823	$	—	$	—	$	742,823
Margin deposits (deficits)	$	3,220,204	$	—	$	—	$	3,220,204

	Fair Value as of December 31, 2022
	Level 1		Level 2		Level 3		Total
Financial assets:
Inventory	$	—	$	133,543,821	$	—	$	133,543,821
Commodity derivative instruments	$	(9,059,941)	$	—	$	—	$	(9,059,941)
Margin deposits	$	5,603,930	$	—	$	—	$	5,603,930

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Principal Activity and Significant Accounting Policies - Additional Information (Details) - USD ($)	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022	Dec. 31, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Deferred revenue	$ 1,210,244		$ 1,074,059	$ 1,347,409
Contract with customer, revenue recognized	723,453	$ 1,340,132
Long-term liabilities	33,025,971		26,110,157
Present value of remaining lease payments	34,202,908
Right-of-use asset	$ 30,861,084		$ 22,708,362

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Principal Activity and Significant Accounting Policies - Disaggregation of Revenue (Details) - USD ($)	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Disaggregation of Revenue [Line Items]
Revenue	$ 171,913,308	$ 171,724,126
Soybean meal and hulls
Disaggregation of Revenue [Line Items]
Revenue	97,123,852	87,424,050
Soybean oil and oil byproducts
Disaggregation of Revenue [Line Items]
Revenue	$ 74,789,456	$ 84,300,076

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Accounts Receivable - Aging of Past Due Receivables (Details) - USD ($)	Mar. 31, 2023	Dec. 31, 2022
Financing Receivable, Past Due [Line Items]
Accounts receivable	$ 41,575,594	$ 43,517,754
Less than 30 days past due
Financing Receivable, Past Due [Line Items]
Accounts receivable	8,871,435	13,779,760
30-60 days past due
Financing Receivable, Past Due [Line Items]
Accounts receivable	395,774	1,780,664
60-90 days past due
Financing Receivable, Past Due [Line Items]
Accounts receivable	363,178	182,146
Greater than 90 days past due
Financing Receivable, Past Due [Line Items]
Accounts receivable	41,034	45,830
Total past due
Financing Receivable, Past Due [Line Items]
Accounts receivable	9,671,421	15,788,400
Current
Financing Receivable, Past Due [Line Items]
Accounts receivable	$ 31,904,173	$ 27,729,354

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Accounts Receivable - Allowance for Doubtful Accounts Receivable (Details) - USD ($)	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Balances, beginning of period	$ 0	$ 0
Amounts charged (credited) to costs and expenses	0	(115,208)
Additions (deductions)	0	$ 115,208
Balances, end of period	$ 0

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Accounts Receivable (Details Textual)	3 Months Ended
	Mar. 31, 2023
Receivables [Abstract]
Percentage of late fee on past due receivables	1.50%

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Inventories (Details) - USD ($)	Mar. 31, 2023	Dec. 31, 2022
Inventory Disclosure [Abstract]
Finished goods	$ 63,553,506	$ 62,619,087
Raw materials	63,497,250	71,001,459
Supplies & miscellaneous	564,427	625,608
Totals	$ 127,615,183	$ 134,246,154

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Investments in Related Parties - Schedule of Investments (Details) - USD ($)	Mar. 31, 2023	Dec. 31, 2022
Equity Securities without Readily Determinable Fair Value [Line Items]
Totals	$ 21,917,466	$ 14,576,910
High Plains Partners, LLC
Equity Securities without Readily Determinable Fair Value [Line Items]
Totals	8,280,316	2,376,180
Prairie AquaTech, LLC
Equity Securities without Readily Determinable Fair Value [Line Items]
Totals	1,553,727	1,553,727
Prairie AquaTech Manufacturing, LLC
Equity Securities without Readily Determinable Fair Value [Line Items]
Totals	7,083,423	5,647,003
Prairie AquaTech Investments, LLC
Equity Securities without Readily Determinable Fair Value [Line Items]
Totals	$ 5,000,000	$ 5,000,000

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Investments in Related Parties - Narrative (Details) - USD ($)	1 Months Ended	3 Months Ended
	Sep. 30, 2022	Mar. 31, 2023	Mar. 31, 2022
Equity Securities without Readily Determinable Fair Value [Line Items]
Soybean meal contributed as investment in related party		$ 1,436,420	$ 0
High Plains Partners, LLC | Collaborative Arrangement, Transaction with Party to Collaborative Arrangement
Equity Securities without Readily Determinable Fair Value [Line Items]
Contribution in exchange for Class B Units	$ 5,000,000
Additional contribution commitment	$ 70,000,000
Total project contributions		$ 8,280,316
High Plains Partners, LLC | Capital Unit, Class B | Collaborative Arrangement, Transaction with Party to Collaborative Arrangement | High Plains Partners, LLC
Equity Securities without Readily Determinable Fair Value [Line Items]
Units received in exchange for commitment (in units)	2,615
Additional units received in exchange for commitment (in units)	17,169

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Property and Equipment (Details) - USD ($)	Mar. 31, 2023	Dec. 31, 2022
Property, Plant and Equipment [Line Items]
Cost	$ 142,033,176	$ 140,903,867
Accumulated Depreciation	(67,396,150)	(66,343,898)
Total property and equipment, net	74,637,026	74,559,969
Land
Property, Plant and Equipment [Line Items]
Cost	516,326
Accumulated Depreciation	0
Total property and equipment, net	516,326	516,326
Land improvements
Property, Plant and Equipment [Line Items]
Cost	2,695,462
Accumulated Depreciation	(1,110,726)
Total property and equipment, net	1,584,736	1,625,212
Buildings and improvements
Property, Plant and Equipment [Line Items]
Cost	26,288,868
Accumulated Depreciation	(11,454,054)
Total property and equipment, net	14,834,814	15,001,754
Machinery and equipment
Property, Plant and Equipment [Line Items]
Cost	95,048,269
Accumulated Depreciation	(53,266,772)
Total property and equipment, net	41,781,497	42,924,227
Railroad cars
Property, Plant and Equipment [Line Items]
Cost	10,679,356
Accumulated Depreciation	(532,038)
Total property and equipment, net	10,147,318	10,200,714
Company vehicles
Property, Plant and Equipment [Line Items]
Cost	151,682
Accumulated Depreciation	(129,630)
Total property and equipment, net	22,052	26,226
Furniture and fixtures
Property, Plant and Equipment [Line Items]
Cost	1,528,219
Accumulated Depreciation	(902,930)
Total property and equipment, net	625,289	394,353
Construction in progress
Property, Plant and Equipment [Line Items]
Cost	5,124,994
Accumulated Depreciation	0
Total property and equipment, net	$ 5,124,994	$ 3,871,157

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Property and Equipment (Details Textual) - USD ($)	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Property, Plant and Equipment [Abstract]
Depreciation	$ 1,414,076	$ 1,385,495

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Note Payable - Seasonal Loan (Details Textual) - USD ($)	3 Months Ended
	Mar. 31, 2023	Dec. 31, 2022
Line of Credit Facility [Line Items]
Line of credit facility, expiration date	Dec. 01, 2023
Advances outstanding	$ 12,000,000	$ 8,849,344
Seasonal Loan
Line of Credit Facility [Line Items]
Line of credit facility, maximum borrowing capacity	$ 85,000,000
Interest rate	7.05%
Commitment fee percentage	0.20%
Advances outstanding	$ 60,400,891	$ 138,165
Remaining available funds to borrow	$ 24,600,000

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Long-Term Debt (Details) - USD ($)	Mar. 31, 2023	Dec. 31, 2022
Debt Instrument [Line Items]
Revolving term loan from CoBank, interest at variable rates (7.35% and 6.85% at March 31, 2023 and December 31, 2022, respectively), secured by substantially all property and equipment. Loan matures March 20, 2026.	$ 12,000,000	$ 8,849,344
Less current maturities	(4,000,000)	0
Less debt issuance costs, net of amortization of $21,560 and $20,339 as of March 31, 2023 and December 31, 2022, respectively	(2,440)	(3,661)
Total long-term debt	7,997,560	8,845,683
Accumulated amortization	21,560	$ 20,339
Revolving Term Loan
Debt Instrument [Line Items]
Revolving term loan from CoBank, interest at variable rates (7.35% and 6.85% at March 31, 2023 and December 31, 2022, respectively), secured by substantially all property and equipment. Loan matures March 20, 2026.	$ 16,000,000
Interest variable rate	7.35%	6.85%

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Long-Term Debt (Details 1)	Mar. 31, 2023 USD ($)
Debt Disclosure [Abstract]
2024	$ 4,000,000
2025	4,000,000
2026	4,000,000
Long-term Debt	$ 12,000,000

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Long-Term Debt (Details Textual) - USD ($)	3 Months Ended
	Mar. 31, 2023	Dec. 31, 2022
Line of Credit Facility [Line Items]
Advances outstanding	$ 12,000,000	$ 8,849,344
Periodic payment, principal	$ 2,000,000
Periodic payment period	6 months
Annual commitment fee percentage on unused capacity	0.40%
Revolving Term Loan
Line of Credit Facility [Line Items]
Advances outstanding	$ 16,000,000
Variable effective interest rate	7.35%
Maturity date	Mar. 20, 2026
Debt issuance cost	$ 24,000
Remaining borrowing capacity	$ 0

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Operating Leases - Additional Information (Details) - USD ($)	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022	Mar. 19, 2020
Lessee, Lease, Description [Line Items]
Operating lease expense	$ 880,151	$ 664,488
Operating lease, required monthly payments	3,929
Current operating lease liabilities	3,007,006		$ 2,632,995	$ 3,300,000
Operating lease renewal term				7 years
Entity in Western United States
Lessee, Lease, Description [Line Items]
Operating lease expense	$ 58,929	58,929
Railcars | Minimum
Lessee, Lease, Description [Line Items]
Operating lease term	3 years
Railcars | Maximum
Lessee, Lease, Description [Line Items]
Operating lease term	12 years
Machinery and equipment
Lessee, Lease, Description [Line Items]
Operating lease expense	$ 11,219	$ 46,416
Machinery and equipment | Minimum
Lessee, Lease, Description [Line Items]
Operating lease term	3 days
Machinery and equipment | Maximum
Lessee, Lease, Description [Line Items]
Operating lease term	7 days

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Operating Leases - Schedule of Operating Leases (Details)	3 Months Ended
	Mar. 31, 2023 USD ($) railcar
Lessee, Lease, Description [Line Items]
Quantity of Railcars | railcar	636
Monthly Payment | $	$ 369,313
American Railcar Leasing, Maturity Date May 31, 2024
Lessee, Lease, Description [Line Items]
Quantity of Railcars | railcar	13
Monthly Payment | $	$ 7,150
Andersons Railcar Leasing Co. Maturity Date Jun 30, 2023
Lessee, Lease, Description [Line Items]
Quantity of Railcars | railcar	10
Monthly Payment | $	$ 5,000
Andersons Railcar Leasing Co. Maturity Date Jun 30, 2026
Lessee, Lease, Description [Line Items]
Quantity of Railcars | railcar	20
Monthly Payment | $	$ 11,300
Andersons Railcar Leasing Co. Maturity Date Oct 31, 2026
Lessee, Lease, Description [Line Items]
Quantity of Railcars | railcar	15
Monthly Payment | $	$ 8,250
Farm Credit Leasing, Maturity Date Aug 31, 2032
Lessee, Lease, Description [Line Items]
Quantity of Railcars | railcar	87
Monthly Payment | $	$ 34,929
Farm Credit Leasing, Maturity Date May 31, 2033
Lessee, Lease, Description [Line Items]
Quantity of Railcars | railcar	8
Monthly Payment | $	$ 5,966
Farm Credit Leasing, Maturity Date Sep 30, 2033
Lessee, Lease, Description [Line Items]
Quantity of Railcars | railcar	9
Monthly Payment | $	$ 4,624
Farm Credit Leasing, Maturity Date June 30, 2034
Lessee, Lease, Description [Line Items]
Quantity of Railcars | railcar	23
Monthly Payment | $	$ 13,863
Farm Credit Leasing, Maturity Date July 31, 2034
Lessee, Lease, Description [Line Items]
Quantity of Railcars | railcar	30
Monthly Payment | $	$ 30,422
Farm Credit Leasing, Maturity Date September 30, 2034
Lessee, Lease, Description [Line Items]
Quantity of Railcars | railcar	20
Monthly Payment | $	$ 21,668
Farm Credit Leasing, Maturity Date March 31, 2035
Lessee, Lease, Description [Line Items]
Quantity of Railcars | railcar	100
Monthly Payment | $	$ 81,466
GATX Corporation, Maturity Date Jun 30, 2024
Lessee, Lease, Description [Line Items]
Quantity of Railcars | railcar	14
Monthly Payment | $	$ 4,200
Trinity Capital, Maturity Date Oct 31, 2023 With Monthly Payment $17255
Lessee, Lease, Description [Line Items]
Quantity of Railcars | railcar	29
Monthly Payment | $	$ 17,255
Trinity Capital, Maturity Date Oct 31, 2023 With Monthly Payment $11900
Lessee, Lease, Description [Line Items]
Quantity of Railcars | railcar	20
Monthly Payment | $	$ 11,900
Trinity Capital, Maturity Date May 31, 2026 With Monthly Payment $10440
Lessee, Lease, Description [Line Items]
Quantity of Railcars | railcar	2
Monthly Payment | $	$ 980
Wells Fargo Rail, Maturity Date Dec 31, 2022
Lessee, Lease, Description [Line Items]
Quantity of Railcars | railcar	105
Monthly Payment | $	$ 49,875
Wells Fargo Rail, Maturity Date Feb 28, 2027
Lessee, Lease, Description [Line Items]
Quantity of Railcars | railcar	109
Monthly Payment | $	$ 51,775
Wells Fargo Rail, Maturity Date Apr 30, 2027 With Monthly Payment $2765
Lessee, Lease, Description [Line Items]
Quantity of Railcars | railcar	7
Monthly Payment | $	$ 2,765
Wells Fargo Rail, Maturity Date Apr 30, 2027 With Monthly Payment $5925
Lessee, Lease, Description [Line Items]
Quantity of Railcars | railcar	15
Monthly Payment | $	$ 5,925

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Operating Leases - Components of Operating Lease Costs (Details) - USD ($)	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Lessee, Lease, Description [Line Items]
Operating lease costs	$ 950,299	$ 769,833
Cost of revenues - Freight and rail
Lessee, Lease, Description [Line Items]
Operating lease costs	880,151	664,488
Cost of revenues - Production
Lessee, Lease, Description [Line Items]
Operating lease costs	65,642	99,013
Administration expenses
Lessee, Lease, Description [Line Items]
Operating lease costs	$ 4,506	$ 6,332

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Operating Leases - Supplemental Cash Flow Information (Details) - USD ($)	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Leases [Abstract]
Cash paid for amounts included in measurement of lease liabilities	$ 875,288	$ 749,933
Right-of-use assets obtained in exchange for lease liabilities	$ 8,914,885	$ 3,386,523

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Operating Leases - Additional Lease Information (Details)	Mar. 31, 2023
Leases [Abstract]
Weighted-average remaining lease-term - operating leases (in years)	9 years 9 months 18 days
Weighted-average discount rate - operating leases	4.20%

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Operating Leases - Maturity Analysis of Undiscounted Cash Flows of Operating Lease Liabilities (Details)	Mar. 31, 2023 USD ($)
Lessee, Lease, Description [Line Items]
Twelve-month periods ended September 30, 2021	$ 4,281,513
Twelve-month periods ended September 30, 2022	3,942,627
Twelve-month periods ended September 30, 2023	3,900,479
Twelve-month periods ended September 30, 2024	3,691,420
Twelve-month periods ended September 30, 2025	2,928,181
Thereafter	15,458,688
Total lease payments	34,202,908
Less amount of lease payments representing interest	(6,190,038)
Total present value of lease payments	28,012,870
Railcars
Lessee, Lease, Description [Line Items]
Twelve-month periods ended September 30, 2021	4,240,974
Twelve-month periods ended September 30, 2022	3,912,589
Twelve-month periods ended September 30, 2023	3,885,689
Twelve-month periods ended September 30, 2024	3,681,164
Twelve-month periods ended September 30, 2025	2,922,439
Thereafter	15,458,688
Total lease payments	34,101,543
Less amount of lease payments representing interest	(6,184,265)
Total present value of lease payments	27,917,278
Other
Lessee, Lease, Description [Line Items]
Twelve-month periods ended September 30, 2021	40,539
Twelve-month periods ended September 30, 2022	30,038
Twelve-month periods ended September 30, 2023	14,790
Twelve-month periods ended September 30, 2024	10,256
Twelve-month periods ended September 30, 2025	5,742
Thereafter	0
Total lease payments	101,365
Less amount of lease payments representing interest	(5,773)
Total present value of lease payments	$ 95,592

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Member Distribution (Details Textual) - USD ($) $ / shares in Units, $ in Millions		3 Months Ended
	Feb. 02, 2021	Mar. 31, 2023
Member Distribution [Abstract]
Declaration date		Jan. 31, 2023
Cash distributions paid	$ 36.5
Distributions paid, per unit (USD per share)	$ 1.20
Distribution date		Feb. 02, 2023

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Derivative Instruments and Hedging Activities (Details Textual) - USD ($)	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative assets (liabilities), at fair value, net	$ 742,823		$ (9,059,941)
Gains (losses) recorded in cost of goods sold related to commodity derivative instruments	$ 14,483,613	$ (7,263,904)

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Derivative Instruments and Hedging Activities (Details) - USD ($)	3 Months Ended	9 Months Ended
	Mar. 31, 2023	Sep. 30, 2022	Dec. 31, 2022
Derivatives not designated as hedging instruments:
Asset Derivatives	$ 15,879,106		$ 10,950,831
Liability Derivatives	$ 15,136,283		20,010,772
Commodity contracts
Derivatives not designated as hedging instruments:
Balance Sheet Classification	Current Assets/Liabilities	Current Assets/Liabilities
Asset Derivatives	$ 14,820,737		9,716,111
Liability Derivatives	$ 14,954,846		19,820,839
Foreign exchange contracts
Derivatives not designated as hedging instruments:
Balance Sheet Classification	Current Assets/Liabilities	Current Assets/Liabilities
Asset Derivatives	$ 46,443		77,983
Liability Derivatives	$ 38,622		53,267
Interest rate caps and floors
Derivatives not designated as hedging instruments:
Balance Sheet Classification	Current Assets/Liabilities	Current Assets/Liabilities
Asset Derivatives	$ 1,011,926		1,156,737
Liability Derivatives	$ 142,815		$ 136,666

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Derivative Instruments and Hedging Activities (Details 1) - USD ($)	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Derivatives not designated as hedging instruments:
Net Gain (Loss) Recognized on Derivative Activities	$ 14,483,613	$ (7,263,904)
Commodity contracts
Derivatives not designated as hedging instruments:
Net Gain (Loss) Recognized on Derivative Activities	13,826,366	(7,832,140)
Foreign exchange contracts
Derivatives not designated as hedging instruments:
Net Gain (Loss) Recognized on Derivative Activities	814,321	(2,228)
Interest rate caps and floors
Derivatives not designated as hedging instruments:
Net Gain (Loss) Recognized on Derivative Activities	$ (157,074)	$ 570,464

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Fair Value of Financial Instruments (Details) - USD ($)	Mar. 31, 2023	Dec. 31, 2022
Financial assets:
Inventory	$ 126,699,208	$ 133,543,821
Margin deposits (deficits)	3,220,204
Margin deposits	3,220,204	5,603,930
Commodity contracts
Financial assets:
Commodity derivative instruments	742,823	(9,059,941)
Fair Value, Inputs, Level 1
Financial assets:
Inventory	0	0
Margin deposits (deficits)	3,220,204
Margin deposits		5,603,930
Fair Value, Inputs, Level 1 | Commodity contracts
Financial assets:
Commodity derivative instruments	742,823	(9,059,941)
Fair Value, Inputs, Level 2
Financial assets:
Inventory	126,699,208	133,543,821
Margin deposits (deficits)	0
Margin deposits		0
Fair Value, Inputs, Level 2 | Commodity contracts
Financial assets:
Commodity derivative instruments	0	0
Fair Value, Inputs, Level 3
Financial assets:
Inventory	0	0
Margin deposits (deficits)	0
Margin deposits		0
Fair Value, Inputs, Level 3 | Commodity contracts
Financial assets:
Commodity derivative instruments	$ 0	$ 0

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Related Party Transactions (Details) - Prairie AquaTech, LLC - USD ($)	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Related Party Transaction [Line Items]
Revenue from related parties	$ 2,947,866	$ 3,755,756
Due from related parties	$ 0		$ 1,433,551

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Commitments and Contingencies (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2023 USD ($)
Long-term Purchase Commitment [Line Items]
Unpaid commitments for construction and acquisition of property and equipment	$ 1,866
Capital Addition Purchase Commitments
Long-term Purchase Commitment [Line Items]
Commitment to facilitate construction	$ 75,000