10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

x	Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934.
	For the quarterly period ended	January 31, 2012
	OR
o	Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934.
	For the transition period from               to               .
	COMMISSION FILE NUMBER 000-51177

GOLDEN GRAIN ENERGY, LLC

(Exact name of registrant as specified in its charter)

Iowa	02-0575361
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
1822 43rd Street SW, Mason City, Iowa 50401
(Address of principal executive offices)
(641) 423-8525
(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.

x Yes     o 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).

x Yes     o No

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

Large Accelerated Filer o	Accelerated Filer  o
Non-Accelerated Filer x	Smaller Reporting Company o

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

o Yes     x No

Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date: 

As of March 15, 2012, there were 23,540,000 Class A membership units outstanding and 920,000 Class B membership units outstanding.

1

INDEX

	Page Number
PART I. FINANCIAL INFORMATION	3
Item 1. Financial Statements	3
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations	13
Item 3. Quantitative and Qualitative Disclosures about Market Risk	19
Item 4. Controls and Procedures	20
PART II. OTHER INFORMATION	20
Item 1. Legal Proceedings	20
Item 1A. Risk Factors	20
Item 2. Unregistered Sales of Equity Securities	21
Item 3. Defaults Upon Senior Securities	21
Item 4. Mine Safety Disclosures	21
Item 5. Other Information	21
Item 6. Exhibits	21
SIGNATURES	21

2

PART I    FINANCIAL INFORMATION

Item 1. Financial Statements

GOLDEN GRAIN ENERGY, LLC

Balance Sheet

ASSETS	January 31, 2012		October 31, 2011
	(Unaudited)		(Audited)
Current Assets
Cash and equivalents	$	128,233	$	485,088
Accounts receivable	4,256,602		14,910,784
Other receivables	1,440,015		816,544
Due from broker	496,127		391,731
Derivative instruments	49,537		—
Inventory	9,802,596		5,885,738
Prepaid expenses and other	1,482,708		1,259,485
Total current assets	17,655,818		23,749,370
Property and Equipment
Land and land improvements	11,262,333		11,262,333
Building and grounds	25,761,752		25,761,752
Grain handling equipment	13,457,627		13,293,819
Office equipment	317,569		317,569
Plant and process equipment	69,383,256		69,245,793
Construction in progress	974,644		204,741
	121,157,181		120,086,007
Less accumulated depreciation	49,778,052		47,528,188
Net property and equipment	71,379,129		72,557,819
Other Assets
Investments	23,408,910		21,975,507
Grant receivable, net of current portion	2,111,299		2,058,627
Debt issuance costs, net of accumulated amortization (2012 $14,798; 2011 $11,838)	59,190		62,150
Total other assets	25,579,399		24,096,284
Total Assets	$	114,614,346	$	120,403,473

Notes to Financial Statements are an integral part of this Statement.

3

GOLDEN GRAIN ENERGY, LLC

Balance Sheet

LIABILITIES AND MEMBERS' EQUITY	January 31, 2012		October 31, 2011
	(Unaudited)		(Audited)
Current Liabilities
Current portion long-term debt	$	32,240	$	44,959
Accounts payable	6,084,978		4,921,605
Accrued expenses	1,091,292		1,052,325
Derivative instruments	—		287,782
Deferred revenue	443,014		431,931
Total current liabilities	7,651,524		6,738,602
Long-term Liabilities
Deferred compensation	203,556		337,790
Long-term debt, net of current maturities	79,329		108,617
Deferred revenue, net of current portion	1,503,767		1,622,833
Total long-term liabilities	1,786,652		2,069,240
Commitments and Contingencies
Members' Equity (24,460,000 units issued and outstanding)	105,176,170		111,595,631
Total Liabilities and Members’ Equity	$	114,614,346	$	120,403,473

Notes to Financial Statements are an integral part of this Statement.

4

GOLDEN GRAIN ENERGY, LLC

Statements of Operations (Unaudited)

	Three Months Ended			Three Months Ended
	January 31, 2012			January 31, 2011
Revenues	$	84,368,277		$	72,668,264
Cost of Goods Sold	77,421,344			66,767,828
Gross Profit	6,946,933			5,900,436
Operating Expenses	666,979			647,500
Operating Income	6,279,954			5,252,936
Other Income (Expense)
Interest income	790			2,468
Interest expense	(54,886		)	(158,051		)
Equity in net income of investments	3,253,681			1,365,200
Total	3,199,585			1,209,617
Net Income	$	9,479,539		$	6,462,553
Basic & diluted net income per unit	$	0.39		$	0.26
Weighted average units outstanding for the calculation of basic & diluted net income per unit	24,460,000			24,460,000
Distributions Per Unit	$	0.65		$	0.25

Notes to Financial Statements are an integral part of this Statement.

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GOLDEN GRAIN ENERGY, LLC

Statements of Cash Flows (Unaudited)

	Three Months Ended			Three Months Ended
	January 31, 2012			January 31, 2011
Cash Flows from Operating Activities
Net income	$	9,479,539		$	6,462,553
Adjustments to reconcile net income to net cash from operating activities:
Depreciation and amortization	2,252,824			2,305,186
Unrealized (gain) on risk management activities	(337,319		)	(1,450,408		)
Amortization of deferred revenue	(107,983		)	(98,422		)
Accretion of interest on grant receivable	(47,297		)	(46,265		)
Earnings in excess of distributions from investments	(1,433,403		)	(1,365,200		)
Deferred compensation expense	24,509			45,970
Change in assets and liabilities
Accounts receivable	10,654,182			1,684,288
Inventory	(3,916,858		)	(2,276,604		)
Due from broker	(104,396		)	1,620,540
Prepaid expenses and other	(852,069		)	(367,485		)
Accounts payable	1,163,373			883,056
Accrued expenses	38,967			84,417
Deferred compensation payable	(158,743		)	(91,595		)
Net cash provided by operating activities	16,655,326			7,390,031
Cash Flows from Investing Activities
Capital expenditures	(1,071,174		)	(616,193		)
Net cash (used in) investing activities	(1,071,174		)	(616,193		)
Cash Flows from Financing Activities
Increase (decrease) in outstanding checks in excess of bank balance	—			524,888
Payments for long-term debt	(42,007		)	(1,435,549		)
Distributions to members	(15,899,000		)	(6,115,000		)
Payments received on grant receivable	—			252,720
Net cash (used in) financing activities	(15,941,007		)	(6,772,941		)
Net Increase (Decrease) in Cash and Equivalents	(356,855		)	897
Cash and Equivalents – Beginning of Period	485,088			119,386
Cash and Equivalents – End of Period	$	128,233		$	120,283
Supplemental Cash Flow Information
Cash paid for interest	$	53,391		$	169,704

Notes to Financial Statements are an integral part of this Statement.

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GOLDEN GRAIN ENERGY, LLC

Notes to Financial Statements

(Unaudited)

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The accompanying unaudited condensed financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission.  Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted as permitted by such rules and regulations.  These financial statements and related notes should be read in conjunction with the financial statements and notes thereto included in the Company's audited financial statements for the year ended October 31, 2011, contained in the Company's annual report on Form 10-K for 2011.

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

Nature of Business

Golden Grain Energy, LLC (Golden Grain Energy) is approximately a 105 million gallon annual production ethanol plant near Mason City, Iowa. The Company sells its production of ethanol, distiller grains with solubles and corn oil primarily in the continental United States.

Organization

Golden Grain Energy is organized as an Iowa limited liability company.  The members' liability is limited as specified in Golden Grain Energy's operating agreement and pursuant to the Iowa Revised Uniform Limited Liability Company Act. 

Accounting Estimates

Management uses estimates and assumptions in preparing these financial statements in accordance with generally accepted accounting principles.  Those estimates and assumptions affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities, and the reported revenues and expenses. Actual results could differ from those estimates.

Cash and Equivalents

The Company's cash balances are maintained in bank depositories and periodically exceeded federally insured limits during the year. The Company has not experienced any losses in connection with these balances.

Receivables

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

Investments

The Company has less than a 20% investment interest in five unlisted companies in related industries. These investments are being accounted for by the equity method of accounting under which the Company's share of net income is recognized as income in the Company's income statement and added to the investment account. Distributions or dividends received from the investments are treated as a reduction of the investment account.

The fiscal years of Renewable Products Marketing Group, LLC (RPMG), Guardian Eagle, LLC and Guardian Energy Janesville, LLC end on September 30 and the fiscal years of Absolute Energy, LLC and Homeland Energy Solutions, LLC end on December 31. The Company consistently follows the practice of recognizing the net income based on the most recent reliable data. Therefore, the net income which is reported in the Company's income statement for the three months ended January 31, 2012 for all companies is based on the investee's results for the quarter ended December 31, 2011.

Revenue and Cost Recognition

Revenue from the sale of the Company's products is recognized at the time title to the goods and all risks of ownership transfer to the customers.  This generally occurs upon shipment, loading of the goods or when the customer picks up the goods. Collectability of revenue is reasonably assured based on historical evidence of collectability between the Company and its customers. Interest income is recognized as earned.

Shipping costs incurred by the Company in the sale of ethanol, distiller grains and corn oil are not specifically identifiable and as a result, revenue from the sale of ethanol, distiller grains and corn oil are recorded based on the net selling price reported to the Company from its marketer. Railcar lease costs incurred by the Company in the sale and shipment of distiller grain products are

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GOLDEN GRAIN ENERGY, LLC

Notes to Financial Statements

(Unaudited)

included in cost of goods sold.

Inventory

Inventories are generally valued at the lower of weighted average cost or market.  In the valuation of inventories and purchase commitments, market is based on current replacement values except that it does not exceed net realizable values and is not less than net realizable values reduced by allowances for approximate normal profit margin.

Investment in commodities contracts, derivative instruments and hedging activities

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

The Company enters into short-term cash, option and futures contracts as a means of securing corn and natural gas for the ethanol plant and managing exposure to changes in commodity and energy prices. We occasionally also enter into derivative contracts to hedge our exposure to price risk as it relates to ethanol sales. As part of its risk management process, the Company uses futures and option contracts through regulated commodity exchanges or through the over-the-counter market to manage its risk related to pricing of inventories. All of the Company's derivatives, other than those excluded under the normal purchases and sales exclusion, are designated as non-hedge derivatives, with changes in fair value recognized in net income. Although the contracts are economic hedges of specified risks, they are not designated or accounted for as hedging instruments.

Realized and unrealized gains and losses related to derivative contracts related to corn and natural gas are included as a component of cost of goods sold and derivative contracts related to ethanol are included as a component of revenues in the accompanying financial statements. The fair values of contracts are presented on the accompanying balance sheet as derivative instruments.

Net income per unit

Basic and diluted earnings per unit are computed using the weighted-average number of Class A and B units outstanding during the period.

Environmental liabilities

The Company's operations are subject to environmental laws and regulations adopted by various governmental authorities in the jurisdiction in which it operates. These laws require the Company to investigate and remediate the effects of the release or disposal of materials at its locations. Accordingly, the Company has adopted policies, practices and procedures in the areas of pollution control, occupational health and the production, handling, storage and use of hazardous materials to prevent material environmental or other damage, and to limit the financial liability which could result from such events. Environmental liabilities are recorded when the Company's liability is probable and the costs can be reasonably estimated. No expense or liability has been recorded as of January 31, 2012 or October 31, 2011 for environmental liabilities.

Fair Value

Financial instruments include cash and equivalents, receivables, due from broker, accounts payable, accrued expenses, long-term debt and derivative instruments. Management believes the fair value of each of these instruments approximates their carrying value as of the balance sheet date. The fair value of derivative financial instruments is based on quoted market prices. The fair value of other current financial instruments is estimated to approximate carrying value due to the short-term nature of these instruments. The fair value of the long-term debt is estimated based on anticipated interest rates which management believes would currently be available to the Company for similar issues of debt, taking into account the current credit risk of the Company and the other market factors.

Risks and Uncertainties

The ethanol industry benefited from the Volumetric Ethanol Excise Tax Credit (VEETC) that provided gasoline blenders a 45-cent per ethanol gallon tax credit (calculated as 4.5 cents per gallon of gasoline that contains at least 10% ethanol) and a 54-cent a gallon tariff on ethanol imports. These provisions expired on December 31, 2011. Although the Renewable Fuels Standard still exists to maintain the demand for ethanol in the United States, the Company is uncertain of the long-term impact that the elimination the VEETC credit and tariff will have on the Company and the overall ethanol industry going forward.

8

GOLDEN GRAIN ENERGY, LLC

Notes to Financial Statements

(Unaudited)

2.    INVENTORY

Inventory consisted of the following as of January 31, 2012 and October 31, 2011 :

	January 31, 2012		October 31, 2011
Raw Materials	$	4,052,004	$	3,271,262
Work in Process	1,544,175		1,937,325
Finished Goods	4,206,417		677,151
Totals	$	9,802,596	$	5,885,738

3.    BANK FINANCING

The Company has entered into a master loan agreement with Farm Credit Services of America (FLCA) which includes a revolving term loan and a seasonal revolving loan with maximum borrowings of $27,500,000 and $5,000,000 and maturing on February 1, 2017 and August 1, 2012, respectively. Interest on the revolving term loan and seasonal revolving loan is payable monthly at 3.15% and 2.90% above the one-month LIBOR, respectively. (3.40% and 3.15% as of January 31, 2012) The borrowings are secured by substantially all the assets of the Company. The revolving term loan maximum borrowings are reduced by $2,500,000 on a semi-annual basis.

In addition, the Company is subject to certain financial covenants including but not limited to minimum working capital and net worth requirements and limitations on distributions. Failure to comply with the protective loan covenants or maintain the required financial ratios may cause acceleration of the outstanding principal balances on the loans and/or imposition of fees or penalties. As of January 31, 2012, the Company had approximately $32.5 million total available to borrow under the credit agreements.

The Company has other notes payable of $111,569 outstanding as of January 31, 2012.

4.    RELATED PARTY TRANSACTIONS

The Company purchased corn and materials from members of its Board of Directors or Risk Management Committee that own or manage elevators. Purchases during the three months ended January 31, 2012 and 2011 totaled approximately $32,840,000 and $23,347,000, respectively.

The Company entered into an agreement with Homeland Energy Solutions, LLC in December 2008. Pursuant to the agreement, the companies have agreed to share the compensation costs associated with each position covered by the agreement partially in an effort to reduce the costs of administrative overhead. The Company recorded a reduction of approximately $52,000 and $85,000 to operating expenses during the three months ended January 31, 2012 and 2011, respectively.

5.    EMPLOYEE BENEFIT PLANS

The Company has a deferred phantom unit compensation plan for certain employees equal to 1% of net income. One-third of the amount is paid in cash immediately and the other two-thirds have a vesting schedule of up to five years. During the three months ended January 31, 2012 and 2011, the Company recorded compensation expense related to this plan of approximately $25,000 and $46,000, respectively. As of January 31, 2012, and October 31, 2011, the Company had a liability of approximately $204,000 and $338,000 outstanding as deferred compensation and has approximately $41,000 to be recognized as future compensation expense. Two of the employees covered under this plan are fully vested, one employee has a vesting schedule of less than one year and another employee has approximately five years left to vest. The amount to be recognized in future years as compensation expense is estimated based on the greater of fair market value or book value of the Company's membership units as of January 31, 2012. Fair value is determined by recent trading activity of the Company's membership units. The Company had approximately 13,000 unvested equivalent phantom units outstanding under this plan as of January 31, 2012.

6.    COMMITMENTS, CONTINGENCIES AND AGREEMENTS

Ethanol, Distiller Grains and Corn Oil marketing agreements and major customers

The Company has entered into marketing agreements with a marketing company, in which the Company has an investment, for

9

GOLDEN GRAIN ENERGY, LLC

Notes to Financial Statements

(Unaudited)

the exclusive rights to market, sell and distribute the entire ethanol, distiller grains and corn oil inventory produced by the Company. The distiller grains agreement was executed in December 2010 for an initial nine month period of time beginning on January 1, 2011 with an automatic extension for an additional one year term unless written notice is given. The marketing fees are presented net in revenues.

Approximate sales and marketing fees related to the agreements in place as of January 31, 2012 are as follows:

	Three Months Ended January 31,
	2012		2011
Sales ethanol & corn oil	$	68,135,000	$	63,572,000
Sales distiller grains	14,679,000		4,221,000
Marketing fees ethanol & corn oil	72,000		146,000
Marketing fees distiller grains	66,000		27,000
As of	January 31, 2012		October 31, 2011
Amount due from marketer of ethanol, distiller grains & corn oil	$	4,212,000	$	14,904,000

7.    RISK MANAGEMENT

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

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

Unrealized gains and losses on forward contracts are deemed "normal purchases" under derivative accounting guidelines and, therefore, are not marked to market in the Company's financial statements. The following table represents the approximate amount of realized gains (losses) and changes in fair value recognized in earnings on commodity contracts for periods ended January 31, 2012 and 2011 and the fair value of derivatives as of January 31, 2012 and October 31, 2011:

	Income Statement Classification	Realized Gain (Loss)			Unrealized Gain (Loss)			Total Gain (Loss)
Derivatives not designated as hedging instruments:
Commodity Contracts for the	Revenue	$	(225,000	)	$	1,918,000		$	1,693,000
three months ending January 31, 2012	Cost of Goods Sold	133,000			(1,580,000		)	(1,447,000		)
	Total	$	(92,000	)	$	338,000		$	246,000
Commodity Contracts for the	Revenue	$	(2,493,000	)	$	(1,000,000	)	$	(3,493,000	)
three months ending January 31, 2011	Cost of Goods Sold	2,925,000			(681,000		)	2,244,000
	Total	$	432,000		$	(1,681,000	)	$	(1,249,000	)

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GOLDEN GRAIN ENERGY, LLC

Notes to Financial Statements

(Unaudited)

	Balance Sheet Classification	January 31, 2012		October 31, 2011
Futures contracts through July 2012	Current Asset (Liabilities)	$	50,000	$	(288,000	)

As of January 31, 2012, the Company had approximate outstanding commitments for purchases:

	Commitments Through	Amount
Corn - fixed price	October 2012	$	5,142,000
Corn - basis contract	May 2012	25,811,000
Natural Gas - fixed price	August 2015	9,230,850
Ethanol - fixed price	March 2012	6,886,000

As of January 31, 2012, we had price protection in place for approximately 11% of our anticipated corn needs, approximately 15% of our natural gas needs and approximately 7% of our ethanol sales for the next 12 months.

8.    FAIR VALUE MEASUREMENTS

Financial assets and liabilities carried at fair value are classified and disclosed in one of the following three categories:

Level 1: Valuations for assets and liabilities traded in active markets from readily available pricing sources for market transactions involving identical assets or liabilities.

Level 2: Valuations for assets and liabilities traded in less active dealer or broker markets. Valuations are obtained from third-party pricing services for identical or similar assets or liabilities.

Level 3: Valuations incorporate certain assumptions and projections in determining the fair value assigned to such assets or liabilities.

A description of the valuation methodologies used for instruments measured at fair value, including the general classification of such instruments pursuant to the valuation hierarchy, is set forth below.

Derivative financial instruments: Commodity futures and exchange-traded commodity options contracts are reported at fair value utilizing Level 1 inputs. For these contracts, the Company obtains fair value measurements from an independent pricing service. The fair value measurements consider observable data that may include dealer quotes and live trading levels from markets such as the CME and NYMEX.  Crush swaps are bundled contracts or combined contracts that include a portion of corn, ethanol and natural gas rolled into a single trading instrument. These contracts are reported at fair value utilizing Level 2 inputs and are based on the various trading activity of the components of each segment of the bundled contract.

The following table summarizes financial assets and financial liabilities measured at the approximate fair value on a recurring basis, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value:

	Total			Level 1		Level 2			Level 3
Asset (Liabilities), derivative financial instruments
January 31, 2012	$	50,000		$	—	$	50,000		$	—
October 31, 2011	$	(288,000	)	—		$	(288,000	)	—

Certain financial assets and financial liabilities are measured at fair value on a nonrecurring basis; that is, the instruments are not measured at fair value on an ongoing basis but are subject to fair value adjustments in certain circumstances, for example, when there is evidence of impairment.

11

GOLDEN GRAIN ENERGY, LLC

Notes to Financial Statements

(Unaudited)

9. INVESTMENTS

Condensed, consolidated financial information of the Company’s investment in Absolute Energy, Homeland Energy Solutions, Guardian Eagle, Guardian Energy and RPMG is as follows (in 000’s)

Balance Sheet	12/31/2011		9/30/2011
Current Assets	$	244,318	$	268,721
Other Assets	331,321		346,004
Current Liabilities	162,689		184,981
Long-term Debt	73,392		101,294
Members’ Equity	339,558		328,450
	Three Months Ended
Income Statement	12/31/2011		12/31/2010
Revenue	$	299,825	$	234,068
Gross Profit	48,813		24,890
Net Income	42,709		17,612

The Company recorded equity in net income from investments related to the entities described above of $3,253,681 and $1,365,200 for the three months ended January 31, 2012 and 2011, respectively.

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

Forward Looking Statements

This report contains forward-looking statements that involve future events, our future performance and our expected future operations and actions.  In some cases you can identify forward-looking statements by the use of words such as "may," "will," "should," "anticipate," "believe," "expect," "plan," "future," "intend," "could," "estimate," "predict," "hope," "potential," "continue," or the negative of these terms or other similar expressions.  These forward-looking statements are only our predictions and involve numerous assumptions, risks and uncertainties, including, but not limited to those listed below and those business risks and factors described elsewhere in this report and our other Securities and Exchange Commission filings. 

• Changes in the availability and price of corn and natural gas;

• Our ability to profitably operate the ethanol plant, including the sale of distiller grains and corn oil, and maintain a positive spread between the selling price of our products and our raw material costs;

• The effect our hedging activities have on our financial performance and cash flows;

• Ethanol, distiller grains and corn oil supply exceeding demand and corresponding price reductions;

• Our ability to generate free cash flow to invest in our business, service our debt and satisfy the financial covenants contained in our credit agreement with our lender;

• Changes in our business strategy, capital improvements or development plans;

• Changes in plant production capacity or technical difficulties in operating the plant;

• Changes in general economic conditions or the occurrence of certain events causing an economic impact in the agriculture, oil or automobile industries;

• Lack of transport, storage and blending infrastructure preventing our products from reaching high demand markets;

• Changes in federal and/or state laws and environmental regulations (including elimination of the Renewable Fuel Standard);

• Changes and advances in ethanol production technology;

• Competition from alternative fuel additives;

• Changes in interest rates or the lack of credit availability; and

• Our ability to retain key employees and maintain labor relations.

Our actual results or actions could and likely will differ materially from those anticipated in the forward-looking statements for many reasons, including the reasons described in this report.  We are not under any duty to update the forward-looking statements contained in this report.  We cannot guarantee future results, levels of activity, performance or achievements.  We caution you not to put undue reliance on any forward-looking statements, which speak only as of the date of this report.  You should read this report and the documents that we reference in this report and have filed as exhibits, completely and with the understanding that our actual future results may be materially different from what we currently expect.  We qualify all of our forward-looking statements with these cautionary statements. Unless otherwise stated, references in this report to particular years or quarters refer to our fiscal years ended in October and the associated quarters of those fiscal years.

Overview

Golden Grain Energy, LLC was formed as an Iowa limited liability company on March 18, 2002, for the purpose of constructing, owning and operating a fuel-grade ethanol plant near Mason City in north central Iowa. Since December 2004, we have been engaged in the production of ethanol and distiller grains at the plant and have produced corn oil since February 2009. References to "we," "us," "our" and the "Company" refer to Golden Grain Energy, LLC. We have capacity to produce approximately 105 million gallons of ethanol per year.

Our revenue is derived primarily from the sale and distribution of our ethanol, distiller grains and corn oil. We market our products through Renewable Products Marketing Group, Inc. ("RPMG"), a professional third party marketer. We are an equity owner of RPMG which allows us to realize favorable marketing fees in the sale of our ethanol, distiller grains and corn oil.

On December 15, 2011, we executed the Third Amended Management Services Agreement with Homeland Energy Solutions, LLC ("HES"). The purpose of the Agreement was to incorporate two prior minor amendments to our management services agreement with HES into one agreement and to make other ministerial amendments. We also reduced the number of shared managers that are covered by the agreement. Currently, we share the management services of our Chief Executive Officer and Human Resources Manager. HES shares the management services of its EPA Compliance Officer. The material terms of the management services agreement remain unchanged.

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On December 16, 2011, we received notice from Fagen, Inc. that it had fully executed a Construction Services Agreement that we executed on December 12, 2011 to construct an additional fermenter at our ethanol plant. Fagen, Inc. is the company that constructed our ethanol plant and expansion. Construction of the additional fermenter began in December 2011 and is expected to be complete in June 2012. The total cost of the construction is anticipated to be approximately $3.5 million, which we anticipate funding through earnings and with the line of credit.

In the past, the ethanol industry was impacted by the Volumetric Ethanol Tax Credit ("VEETC") which provided a tax credit of 45 cents per gallon of ethanol produced which is blended with gasoline. However, VEETC expired on December 31, 2011 and management does not expect that it will be renewed. Management believes that the expiration of VEETC will not have a significant effect on ethanol demand provided gasoline prices remain high and the renewable fuels use requirement of the Federal Renewable Fuels Standard ("RFS") is maintained. The RFS requires that a certain amount of renewable fuels must be used in the United States each year. However, if the RFS is repealed, ethanol demand may be significantly impacted. Recently, there have been proposals in Congress to reduce or eliminate the RFS. Management does not believe that these proposals will be adopted in the near future. However, if the RFS is reduced or eliminated now that VEETC was allowed to expire, the market price and demand for ethanol will likely decrease which could negatively impact our financial performance.

United States ethanol production was benefited by a 54 cent per gallon tariff imposed on ethanol imported into the United States. On December 31, 2011, this tariff expired. Management believes that in the short-term, since the United States is a net exporter of ethanol, the expiration of the tariff will not have a significant impact on the United States ethanol industry. However, if other countries are able to increase their ethanol production, the expiration of the tariff may result in increased competition from foreign ethanol producers.

Results of Operations for the Three Months Ended January 31, 2012 and 2011

The following table shows the results of our operations and the percentage of our revenue, cost of goods sold, operating expenses and other items to total revenue in our statement of operations for the three months ended January 31, 2012 and 2011:

	2012			2011
Income Statement Data	Amount		%	Amount		%
Revenue	$	84,368,277	100.0	$	72,668,264	100.0
Cost of Goods Sold	77,421,344		91.8	66,767,828		91.9
Gross Profit	6,946,933		8.2	5,900,436		8.1
Operating Expenses	666,979		0.8	647,500		0.9
Operating Income	6,279,954		7.4	5,252,936		7.2
Other Income	3,199,585		3.8	1,209,617		1.7
Net Income	$	9,479,539	11.2	$	6,462,553	8.9

Revenue. Our total revenue was higher for the first quarter of 2012 compared to the same period of 2011, primarily due to increased prices for our products. We also sold more corn oil during the first quarter of 2012 compared to the same period of 2011 which positively impacted our total revenue. For the first quarter of 2012, ethanol sales accounted for approximately 80% of our total revenue, distiller grains sales accounted for approximately 17% of our total revenue and corn oil sales accounted for approximately 3% of our total revenue. For the first quarter of 2011, ethanol sales accounted for approximately 83% of our total revenue, distiller grains sales accounted for approximately 17% of our total revenue and corn oil sales accounted for less than 1% of our total revenue.

The average price we received for our ethanol during the first quarter of 2012 was approximately 6% higher than the average price we received for the same period of 2011. However, most of the higher ethanol prices occurred during the first two months of our first quarter of 2012. Ethanol prices were lower during the third month of our first quarter of 2012. Management believes that ethanol prices were higher earlier in our first quarter of 2012 due to the expiration of the VEETC blenders' credit at the end of December 2011 which may have increased ethanol exports to Europe, Canada and Brazil prior to the end of 2011. Management also believes that demand was higher in December 2011 from fuel blenders in the United States which were stocking up on ethanol so they could secure the blenders' credit prior to its expiration at the end of 2011. However, in January 2012, gasoline demand decreased which together with the increased ethanol that was in storage in the United States decreased ethanol demand. Management anticipates that ethanol demand will remain lower as the industry continues to use the surplus ethanol which is in the market and until gasoline demand rebounds resulting in increased ethanol demand. Further, management anticipates that ethanol exports may increase in future months which may positively impact ethanol demand and prices.

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Our total ethanol gallons sold decreased by approximately 2% during the first quarter of 2012 compared to the same period of 2011. Management attributes this decrease in total gallons of ethanol sold with higher inventory levels as of January 31, 2012 as compared to January 31, 2011. Management anticipates that our ethanol sales will be lower during our second fiscal quarter as fuel blenders work through their increased ethanol inventory which was purchased before VEETC expired.

The average price we received for our dried distiller grains during the first quarter of 2012 was approximately 24% greater than during the same period of 2011. The average price we received for our modified/wet distiller grains during the first quarter of 2012 was approximately 110% greater than during the same period of 2011. Management attributes these increases in the prices we received for our distiller grains with higher corn prices and increased domestic and export demand for dried distiller grains. Distiller grains prices are typically positively impacted by increases in corn prices as distiller grains are primarily used as an animal feed substitute for corn. As the spread between the market price of corn and the market price of distiller grains increases, demand for distiller grains will also increase. Management anticipates that distiller grains prices will continue to fluctuate in relation to corn prices. Decreased demand from China due to the recent anti-dumping investigation has not impacted the distiller grains market as much as initially expected due to higher corn prices and increased demand from domestic users as well as exports to Mexico which have more than offset the decreased demand from China. Management anticipates continued strong demand for distiller grains due to higher corn prices.

We sold approximately 5% less tons of distiller grains during the first quarter of 2012 compared to the same period of 2011. Management attributes the decrease in distiller grain sales to increases in the pounds of corn oil sold. When we remove corn oil from our distiller grains, the total weight of our distiller grains decreases. Management anticipates that our distiller grains sales will remain steady during our 2012 fiscal year due to continued demand for distiller grains and the value it brings in relationship to corn. We continue to sell nearly all of our distiller grains in the dried form due to market conditions which favor dried distiller grains, including higher demand for and transportability of dried distiller grains versus modified/wet distiller grains.

The average price we received for our corn oil during the first quarter of 2012 was approximately 16% higher than during the same period of 2011. Management attributes this increase in the average price we received for our corn oil with increased corn prices and corn oil demand from biodiesel production. Management anticipates that corn oil prices will continue at the recent highs as long as corn prices remain high. In addition to the increase in corn oil prices, we sold approximately 303% more pounds of corn oil during the first quarter of 2012 compared to the same period of 2011. Management attributes this increase in corn oil sales with improved production processes and procedures we implemented at the plant.

We enter into various derivative instrument positions in order to protect the price we receive for our ethanol. These derivative instrument positions resulted in a combined realized and unrealized gain of approximately $1,693,000$0.0 million during the first quarter of 2012. For the first quarter of 2011, we had a combined realized and unrealized loss on our ethanol derivative instrument positions of approximately $3,493,000. We recognize the gains or losses that result from changes in the value of our derivative instruments related to ethanol in revenues as the changes occur.  

Cost of Goods Sold. The primary raw materials used to produce ethanol, distiller grains and corn oil are corn and natural gas. Our total cost of goods sold related to corn increased by approximately 14% during the first quarter of 2012 compared to the same period of 2011. Our average cost per bushel of corn during the first quarter of 2012 was approximately 12% higher than during the same period of 2011. Management attributes this increase in corn costs with higher market corn prices due to strong corn demand and lower corn carryover during the last couple of crop years which have led to increased corn prices. Management anticipates that corn prices will increase into the planting season as the market works to increase the number of acres of corn that are planted in the spring of 2012. Management anticipates that corn prices will decrease into the summer months provided we do not experience unfavorable weather conditions that result in uncertainty regarding the size of the corn crop during 2012.

Our corn consumption was approximately 3% higher during the first quarter of 2012 compared to the same period of 2011, due to our increased ethanol production which increased our ethanol inventory. Our corn conversion rates were better during our first quarter of 2012 compared to our first quarter of 2011 because of slight modifications we made to our production process which allowed us to increase the number of gallons of ethanol we could produce per bushel of corn. Management anticipates that our corn conversion will remain at the current levels for the remaining quarters of our 2012 fiscal year.

Our total cost of goods sold related to natural gas costs decreased by approximately 12% during the first quarter of 2012 compared to the same period of 2011. The average price we paid per mmBtu of natural gas decreased by approximately 17% for the first quarter of 2012 compared to the same period of 2011. Management attributes this decrease in the average price we paid for our natural gas with strong natural gas supplies which have kept natural gas prices low. Management anticipates that natural gas prices will continue at their current levels unless the natural gas industry experiences production problems or large increases in demand during 2012. Some believe that due to recent increases in natural gas production in the United States, the United States may start exporting natural gas in the future. If this were to occur, it may result in higher natural gas prices in the United States

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due to increased demand. The United States has been able to increase natural gas production due to a process called hydraulic fracturing frequently referred to as "fracking." However, the natural gas industry is experiencing challenges to this natural gas production process. If fracking is banned or limited due to these challenges, it could lead to less natural gas production which may negatively impact natural gas prices.

Our natural gas consumption was approximately 6% higher during the first quarter of 2012 compared to the same period of 2011. Management attributes this increase in natural gas consumption with increased ethanol production which increased ethanol inventories. Management anticipates that our natural gas consumption will remain relatively stable during our 2012 fiscal year as compared to our 2011 fiscal year.

We enter into various derivative instrument positions in order to protect the price we pay for our corn and natural gas. These derivative instrument positions resulted in a combined realized and unrealized loss of approximately $1,447,000 during the first quarter of 2012. For the first quarter of 2011, our derivative instrument positions resulted in a combined realized and unrealized gain of approximately $2,244,000. We recognize the gains or losses that result from changes in the value of our derivative instruments from corn and natural gas in cost of goods sold as the changes occur. As corn and natural gas fluctuate, the value of our derivative instruments are recognized in cost of goods sold.

Operating Expenses. Our operating expenses were slightly higher for the first quarter of 2012 compared to the same period of 2011 due primarily to increases in personnel expenses.

Other Income (Expense). Our interest expense decreased during the first quarter of 2012 compared to the same period of 2011 because we had less debt outstanding during the first quarter of 2012 compared to the same period of 2011. Our equity in the net income of our investments increased during the first quarter of 2012 compared to the same period of 2011 due primarily to strong returns during the quarter ended December 31, 2011 for ethanol companies in which we are invested.

Changes in Financial Condition for the Three Months Ended January 31, 2012

Current Assets. We had less accounts receivable at January 31, 2012 as compared to October 31, 2011 because we had more gallons in inventory as of January 31, 2012 compared to October 31, 2011. In addition, we have seen a drop in ethanol prices since October 31, 2011 which resulted in a lower carrying value for the ethanol included in our accounts receivable. We had more other receivables at January 31, 2012 compared to October 31, 2011 due to a distribution from one of our ethanol investments.

Property and Equipment. The net value of our property and equipment was lower at January 31, 2012 compared to October 31, 2011 primarily as a result of depreciation. We have ongoing construction in progress costs due primarily to our fermenter project which started during our first quarter of 2012.

Other Assets. Our other assets were higher at January 31, 2012 compared to October 31, 2011 due mainly to the income we realized during the first three months of 2012 from our various investments, which are primarily in companies involved in the ethanol industry.

Current Liabilities. Our accounts payable was higher at January 31, 2012 compared to October 31, 2011 primarily due to higher corn prices which increases the total amount that we have due to our corn suppliers. We had no liability associated with our derivative instruments at January 31, 2012 because we had no unrealized losses on our derivative instruments as of January 31, 2012.

Long-term Liabilities. Our long-term liabilities were lower at January 31, 2012 compared to October 31, 2011, primarily because we continue to pay down our lines of credit with the City of Mason City and also due to payments we made on our deferred compensation arrangements.

Liquidity and Capital Resources

Based on financial forecasts performed by our management, we anticipate that we will have sufficient cash from our current credit facilities and cash from our operations to continue to operate the ethanol plant at capacity for the next 12 months. As of January 31, 2012, we had approximately $27.5 million available pursuant to our variable line of credit and $5 million available pursuant to our seasonal line of credit. Further, we had approximately $128,000 in cash and cash equivalents as of January 31, 2012.

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We do not currently anticipate seeking additional equity or debt financing in the near term. However, should we experience unfavorable operating conditions in the future, we may have to secure additional debt or equity financing for working capital or other purposes.

Except for completion of our fermenter project, we do not currently anticipate any significant purchases of property and equipment that would require us to secure additional capital in the next 12 months. However, management continues to evaluate conditions in the ethanol industry and explore opportunities to improve the efficiency and profitability of our operations which may require capital expenditures.

The following table shows our cash flows for the three months ended January 31, 2012 and 2011:

	Three Months Ended January 31
	2012			2011
Net cash provided by operating activities	$	16,655,326		$	7,390,031
Net cash (used in) investing activities	(1,071,174		)	(616,193		)
Net cash (used in) financing activities	(15,941,007		)	(6,772,941		)

Cash Flow From Operations

Our cash flows from operations for the first three months of 2012 were higher primarily due to a significant change in our accounts receivable and accounts payable which benefited our cash flow during the 2012 period. Further, this increase in cash from operations was offset by a larger increase in inventory at January 31, 2012 because of a higher quantity and price of corn and ethanol on hand at January 31, 2012 compared to October 31, 2011.

Cash Flow From Investing Activities

We used more cash for investing activities during the first three months of 2012 compared to the same period of 2011 due to construction of an additional fermenter in the plant. During the first three months of 2011, we used cash primarily for our centrifuge project.

Cash Flow From Financing Activities.

During the first three months of 2012, we primarily used cash for financing activities related to a distribution we paid to our members. During the first three months of 2011, we used significantly less cash for a distribution to our members but more cash to repay our long-term debt because we were paying down our revolving loan with our primary lender at that time.

Short-Term and Long-Term Debt Sources

On July 23, 2010, we entered into a comprehensive credit facility with Farm Credit Services of America, FLCA and Farm Credit Services of America, PCA (collectively "Farm Credit"). The total face amount of this comprehensive credit facility as of January 31, 2012 was $32.5 million which is split among two separate loans: (i) a $27.5 million variable line of credit with a maturity date of February 1, 2017; and (ii) a $5 million seasonal line of credit with a maturity date of August 1, 2011. In exchange for this comprehensive credit facility, we executed a mortgage in favor of Farm Credit covering all of our real property and granted Farm Credit a security interest in all of our equipment and other assets. In the event we default on our loans with Farm Credit, Farm Credit may foreclose on our assets, including both our real property and our machinery and equipment. On July 13, 2011, we executed and delivered amended loan agreements with Farm Credit in order to extend the maturity date of our seasonal line of credit until August 1, 2012.

Variable Line of Credit

We have a long-term revolving line of credit with a total principal amount of $27.5 million. Interest on this loan accrues at 3.15% above the One-Month London Interbank Offered Rate (LIBOR). The interest rate is subject to weekly adjustment. We may elect to enter into a fixed interest rate on this loan at various times throughout the term of the loan as provided in the loan agreements. The maximum principal amount of this loan decreases by $2.5 million semi-annually starting on August 1, 2011 and continuing until February 1, 2016. After February 1, 2016, we will have $5 million available pursuant to this long-term revolving line of credit until it matures on February 1, 2017. In the event any amount is outstanding on this loan in excess of the new credit limit after these periodic reductions, we agreed to repay principal on the loan until we reach the new credit limit. We agreed to

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pay an annual fee of 0.6% of the unused portion of this loan. As of January 31, 2012, we had $0$0.0 millionoutstanding on this loan which would accrue interest at a rate of 3.4%0% per year and approximately $27.5 million available to be drawn.

Seasonal Line of Credit

The maturity date of this seasonal line of credit is August 1, 2012. Interest on this loan accrues at 2.9% above the One-Month LIBOR. The interest rate is subject to weekly adjustment. We may elect to enter into a fixed interest rate on this loan at various times throughout the term of the loan as provided in the loan agreements. We agreed to pay an annual fee of 0.3% of the unused portion of this loan. As of January 31, 2012, we had $0 outstanding on this loan and $5 million available to be drawn. If we had a balance on this line of credit, interest would accrue at a rate of 3.2%0% per year.

Administrative Agency Agreement

As part of the Farm Credit loan closing, we entered into an Administrative Agency Agreement with CoBank, ACP ("CoBank"). CoBank purchased a participation interest in the Farm Credit loans and was appointed the administrative agent for the purpose of servicing the loans. As a result, CoBank will act as the agent for Farm Credit with respect to our loans. We agreed to pay CoBank an annual fee of $5,000 as the agent for Farm Credit.

Covenants

Our credit agreements with Farm Credit are subject to numerous covenants requiring us to maintain various financial ratios. As of January 31, 2012, we were in compliance with all of our loan covenants with Farm Credit. Based on current management projections, we anticipate that we will be in compliance with our loan covenants for the next 12 months and beyond.

Grants and Government Programs

We entered into an agreement with the Iowa Department of Economic Development for funding through the State of Iowa's Value-Added Agricultural Products and Processes Financial Assistance Program ("VAAPPFAP") in conjunction with our original plant construction. We repaid the remaining balance of this loan on December 15, 2010.

In December 2006, we received the first payment from our semi-annual economic development grants equal to the amount of the tax assessments imposed on our ethanol plant by Cerro Gordo County, the county in which our ethanol plant is located. Based on our 2009 assessment, the total amount of these grants is expected to be approximately $6 million, which will be paid semi-annually over a 10-year period with the final payment being made in 2019.

Critical Accounting Policies

Management uses estimates and assumptions in preparing our financial statements in accordance with generally accepted accounting principles. These estimates and assumptions affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities, and the reported revenues and expenses. Of the significant accounting policies described in the notes to our financial statements, we believe that the following are the most critical:

Revenue Recognition

Revenue from the sale of our products is recognized at the time title to the goods and all risks of ownership transfer to the customers.  The time of transfer is defined in the specific sales agreement; however, it generally occurs upon shipment, loading of the goods or when the customer picks up the goods. Collectability of revenue is reasonably assured based on historical evidence of collectability between us and our customers. Interest income is recognized as earned.

Shipping costs incurred by us in the sale of ethanol and corn oil are not specifically identifiable and as a result, revenue from the sale of ethanol and corn oil are recorded based on the net selling price reported to us from our marketer. Shipping costs incurred by us in the sale of distiller grain products are included in cost of goods sold.

Investment in Commodities Contracts, Derivative Instruments and Hedging Activities

We evaluate contracts to determine whether the contracts are derivative instruments. Certain contracts that meet the definition of a derivative may be exempted from derivative accounting and treated as normal purchases or normal sales if documented as such. Normal purchases and normal sales are contracts that provide for the purchase or sale of something other than a financial instrument or derivative instrument that will be delivered in quantities expected to be used or sold over a reasonable

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period in the normal course of business.

We enter into short-term cash, option and futures contracts as a means of securing corn and natural gas for the ethanol plant and managing exposure to changes in commodity and energy prices. We occasionally also enter into derivative contracts to hedge our exposure to price risk as it relates to ethanol sales. As part of our risk management process, we use futures and option contracts through regulated commodity exchanges or through the over-the-counter market to manage our risk related to pricing of inventories. All of our derivatives, other than those excluded under the normal purchases and sales exclusion, are designated as non-hedge derivatives, with changes in fair value recognized in net income. Although the contracts are economic hedges of specified risks, they are not designated or accounted for as hedging instruments.

Realized and unrealized gains and losses related to derivative contracts related to corn and natural gas are included as a component of cost of goods sold and derivative contracts related to ethanol are included as a component of revenues in the accompanying financial statements. The fair values of contracts are presented on the accompanying balance sheet as derivative instruments.

Investments

The Company has less than a 20% investment interest in five unlisted companies in related industries. These investments are being accounted for by the equity method of accounting under which the Company's share of net income is recognized as income in the Company's income statement and added to the investment account. Distributions or dividends received from the investments are treated as a reduction of the investment account.

Off-Balance Sheet Arrangements.

We currently have no off-balance sheet arrangements.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

We are exposed to the impact of market fluctuations associated with commodity prices as discussed below. We have no exposure to foreign currency risk as all of our business is conducted in U.S. Dollars and we have no interest rate exposures as none of our outstanding debt instruments have variable interest rates. We have lines of credit which are subject to variable interest rates but we had no amounts outstanding on these lines of credit as of January 31, 2012. We use derivative financial instruments as part of an overall strategy to manage market risk. We use cash, futures and option contracts to hedge changes to the commodity prices of corn, natural gas and ethanol. We do not enter into these derivative financial instruments for trading or speculative purposes, nor do we designate these contracts as hedges for accounting purposes.

Commodity Price Risk

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

As of January 31, 2012, we had price protection in place for approximately 11% of our anticipated corn needs, approximately 15% of our natural gas needs and approximately 7% of our ethanol sales for the next 12 months.

In addition, we have contracts to purchase natural gas for the next 48 months. These contracts represent between 13% and 23% of our annual usage requirements for the years in which we have natural gas purchase contracts. These natural gas purchase requirements are at fixed rates.

A sensitivity analysis has been prepared to estimate our exposure to ethanol, corn and natural gas price risk. Market risk related to these factors is estimated as the potential change in income resulting from a hypothetical 10% adverse change in the average cost of our corn and natural gas prices and average ethanol price as of January 31, 2012, net of the forward and future contracts used to hedge our market risk for corn and natural gas usage requirements over the next 12 months. The volumes are

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based on our expected use and sale of these commodities for a one year period from January 31, 2012. The results of this analysis, which may differ from actual results, are as follows:

	Estimated Volume Requirements for the next 12 months (net of forward and futures contracts)	Unit of Measure	Hypothetical Adverse Change in Price	Approximate Adverse Change to Income
Natural Gas	2,714,000	MMBTU	10%	$	844,000
Ethanol	102,022,000	Gallons	10%	$	20,871,000
Corn	34,108,000	Bushels	10%	$	21,351,000

Liability Risk

We participate in a captive reinsurance company (the "Captive").  The Captive reinsures losses related to worker's compensation, commercial property and general liability.  Premiums are accrued by a charge to income for the period to which the premium relates and is remitted by our insurer to the captive reinsurer.  The Captive reinsures catastrophic losses in excess of a predetermined amount.  Our premiums are structured such that we have made a prepaid collateral deposit estimated for losses related to the above coverage.  The Captive insurer has estimated and collected an amount in excess of the estimated losses but less than the catastrophic loss limit insured by the Captive. We cannot be assessed in excess of the amount in the collateral fund.

Item 4.  Controls and Procedures

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

Our management, including our President and Chief Executive Officer (the principal executive officer), Walter Wendland, along with our Chief Financial Officer, (the principal financial officer), Christine Marchand, have reviewed and evaluated the effectiveness of our disclosure controls and procedures as of January 31, 2012. Based on this review and evaluation, these officers believe that our disclosure controls and procedures are effective in ensuring that material information related to us is recorded, processed, summarized and reported within the time periods required by the forms and rules of the Securities and Exchange Commission.

For the fiscal quarter ended January 31, 2012, there has been no change in our internal control over financial reporting that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

PART II. OTHER INFORMATION

Item 1. Legal Proceedings

None.

Item 1A. Risk Factors

The following risk factor is provided due to material changes from the risk factors previously disclosed in our annual report on Form 10-K. The risk factor set forth below should be read in conjunction with the risk factors section and the Management's Discussion and Analysis section for the fiscal year ended October 31, 2011, included in our annual report on Form 10-K.

Decreasing gasoline demand may result in lower ethanol demand and prices which could negatively impact our ability to profitably operate the ethanol plant. In January 2012, gasoline demand was significantly lower than in previous months. Further, gasoline prices have continue to trend higher which has negatively impacted demand. Since ethanol is typically blended with gasoline, as demand for gasoline drops, so does demand for ethanol. If the United States ethanol industry is not able to increase exports of ethanol in order to supplement domestic demand, this may lead to continued lower ethanol prices which could negatively impact our ability to profitably operate the ethanol plant.

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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.

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

Exhibit No.	Exhibit
3.1	First Amendment to the Third Amended and Restated Operating Agreement of Golden Grain Energy, LLC dated February 20, 2012. *
31.1	Certificate Pursuant to 17 CFR 240.13a-14(a)*
31.2	Certificate Pursuant to 17 CFR 240.13a-14(a)*
32.1	Certificate Pursuant to 18 U.S.C. Section 1350*
32.2	Certificate Pursuant to 18 U.S.C. Section 1350*
101	The following financial information from Golden Grain Energy, LLC's Quarterly Report on Form 10-Q for the quarter ended January 31, 2012, formatted in XBRL (eXtensible Business Reporting Language): (i) Balance Sheets as of January 31, 2012 and October 31, 2011, (ii) Statements of Operations for the three months ended January 31, 2012 and 2011, (iii) Statements of Cash Flows for the three months ended January 31, 2012 and 2011, and (iv) the Notes to Condensed Financial Statements.**

*    Filed herewith.

**    Furnished herewith.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

		GOLDEN GRAIN ENERGY, LLC
Date:	March 15, 2012	/s/ Walter Wendland
		Walter Wendland
		President and Chief Executive Officer
		(Principal Executive Officer)
Date:	March 15, 2012	/s/ Christine Marchand
		Christine Marchand
		Chief Financial Officer
		(Principal Financial and Accounting Officer)

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EX-3.1

FIRST AMENDMENT TO THE

THIRD AMENDED AND RESTATED OPERATING AGREEMENT

OF GOLDEN GRAIN ENERGY, LLC

THIS FIRST AMENDMENT TO THE THIRD AMENDED AND RESTATED OPERATING AGREEMENT OF GOLDEN GRAIN ENERGY, LLC dated February 15, 2007 (the “Operating Agreement”) is adopted and approved effective as of the 20th day of February, 2012, by the affirmative vote of a majority of the members of Golden Grain Energy, LLC (the “Company”) represented at the 2012 Annual Meeting, held on February 20, 2012, at which a quorum was present, pursuant to Sections 8.1 and 6.4 of the Operating Agreement.

The Operating Agreement is amended as follows:

1.Section 5.1(b) of the Operating Agreement is removed in its entirety and is replaced by the following:

Number. The size of the Board of Directors shall be a minimum of seven (7) Directors and a maximum of thirteen (13) Directors. The Board of Directors may adjust the size of the Board of Directors within this range by an affirmative vote of a majority of all Directors. Notwithstanding the foregoing, at all times there shall be a majority of Directors who are elected by the Members pursuant to Section 5.2 of this Agreement as compared to the number of Directors appointed pursuant to Section 5.1(c) of this Agreement.

2.Section 5.1(v) of the Operating Agreement is removed in its entirety and is replaced by the following:

Board of Directors Right to Appoint Successor. If a vacancy in an appointed board position is not filled within thirty (30) days, then the appointing Class A Unit Holder's right to appoint a Director shall terminate and the Board of Directors shall have the option to either appoint a successor Director to fill the vacant appointed director position or eliminate the vacant appointed director position. In the event that the number of Class A Units held by an appointing Class A Unit Holder falls below one million (1,000,000) Units, the term of any Director appointed by such appointing Unit Holder shall terminate and the Board of Directors shall have the option to either appoint a successor Director to fill the vacant appointed director position or eliminate the vacant appointed director position. Decisions by the Board of Directors to eliminate a vacant appointed director position shall be made by an affirmative vote of a majority of all Directors.

3.A new Section 6.10 is added to the Operating Agreement which reads as follows:

Fixing of Record Date. For purposes of determining the Members entitled to notice of, or to vote at, any Member meeting or any adjournment thereof, or for purposes of determining the Members entitled to receive payment of any distribution, or in order to make a determination of the Members for any other purpose, the Directors may fix in advance a date as the record date for any such determination of Members. In the case of a record date with respect to a meeting of Members, such date shall be set at least ten (10) days prior to the meeting for which the record date is established. If no record date is fixed for the determination, the date on which notice of the meeting is mailed or the date on which the resolution of the Directors declaring a distribution is adopted, as the case may be, shall be the record date for such determination. When a determination of Members entitled to vote at any meeting of the Members has been made as provided in this Section, such determination shall apply to any adjournment thereof, unless the Directors fix a new record date, which it must do if the meeting is adjourned to a date more than one hundred twenty (120) days after the date fixed for the original meeting.

I, Stan Laures, do hereby certify that I am the duly elected, qualified, and acting Secretary of the Company, and further certify that the above amendment was duly adopted by a majority of the members of

the Company at a meeting of the members held on February 20, 2012, in accordance with the provisions of the Company's Operating Agreement.

	/s/ Stan Laures
	Stan Laures, Secretary
Approved:
/s/ Dave Sovereign
Dave Sovereign, Chairman of the Board

EX-31.1

CERTIFICATIONS

I, Walter Wendland, certify that:

1.    I have reviewed this quarterly report on Form 10-Q of Golden Grain Energy, LLC;

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(s) 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 Exchange Act Rules 13a-15(f) and 15d-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, including its consolidated subsidiaries, 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; and

5. The registrant's other certifying officer(s) 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 information; 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:	March 15, 2012	/s/ Walter Wendland
		Walter Wendland, President and Chief Executive Officer (Principal Executive Officer)

EX-31.2

CERTIFICATIONS

I, Christine Marchand, certify that:

1.    I have reviewed this quarterly report on Form 10-Q of Golden Grain Energy, LLC;

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(s) 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 Exchange Act Rules 13a-15(f) and 15d-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, including its consolidated subsidiaries, 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; and

5. The registrant's other certifying officer(s) 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 information; 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:	March 15, 2012	/s/ Christine Marchand
		Christine Marchand, Chief Financial Officer (Principal Financial Officer)

EX-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 on Form 10-Q of Golden Grain Energy, LLC (the “Company”) for the quarter ended January 31, 2012, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Walter Wendland, Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

1. The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

	/s/ Walter Wendland
	Walter Wendland
	President and Chief Executive Officer
Dated:	March 15, 2012

EX-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 on Form 10-Q of Golden Grain Energy, LLC (the “Company”) for the quarter ended January 31, 2012, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Christine Marchand, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

1. The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

	/s/ Christine Marchand
	Christine Marchand
	Chief Financial Officer
Dated:	March 15, 2012

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Related Party Transactions

3 Months Ended

Jan. 31, 2012

Related Party Transactions [Abstract]

Related Party Transactions

RELATED PARTY TRANSACTIONS

The Company purchased corn and materials from members of its Board of Directors or Risk Management Committee that own or manage elevators. Purchases during the three months ended January 31, 2012 and 2011 totaled approximately $32,840,000 and $23,347,000, respectively.

The Company entered into an agreement with Homeland Energy Solutions, LLC in December 2008. Pursuant to the agreement, the companies have agreed to share the compensation costs associated with each position covered by the agreement partially in an effort to reduce the costs of administrative overhead. The Company recorded a reduction of approximately $52,000 and $85,000 to operating expenses during the three months ended January 31, 2012 and 2011, respectively.

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Bank Financing

3 Months Ended

Jan. 31, 2012

Bank Financing [Abstract]

Bank Financing

BANK FINANCING

The Company has entered into a master loan agreement with Farm Credit Services of America (FLCA) which includes a revolving term loan and a seasonal revolving loan with maximum borrowings of $27,500,000 and $5,000,000 and maturing on February 1, 2017 and August 1, 2012, respectively. Interest on the revolving term loan and seasonal revolving loan is payable monthly at 3.15% and 2.90% above the one-month LIBOR, respectively. (3.40% and 3.15% as of January 31, 2012) The borrowings are secured by substantially all the assets of the Company. The revolving term loan maximum borrowings are reduced by $2,500,000 on a semi-annual basis.

In addition, the Company is subject to certain financial covenants including but not limited to minimum working capital and net worth requirements and limitations on distributions. Failure to comply with the protective loan covenants or maintain the required financial ratios may cause acceleration of the outstanding principal balances on the loans and/or imposition of fees or penalties. As of January 31, 2012, the Company had approximately $32.5 million total available to borrow under the credit agreements.

The Company has other notes payable of $111,569 outstanding as of January 31, 2012.

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Balance Sheet (USD $)	Jan. 31, 2012	Oct. 31, 2011
Current Assets
Cash and equivalents	$ 128,233	$ 485,088
Accounts receivable	4,256,602	14,910,784
Other receivables	1,440,015	816,544
Due from broker	496,127	391,731
Derivative Instruments	49,537	0
Inventory	9,802,596	5,885,738
Prepaid expenses and other	1,482,708	1,259,485
Total current assets	17,655,818	23,749,370
Property and Equipment
Land and land improvements	11,262,333	11,262,333
Building and grounds	25,761,752	25,761,752
Grain handling equipment	13,457,627	13,293,819
Office equipment	317,569	317,569
Plant and process equipment	69,383,256	69,245,793
Construction in progress	974,644	204,741
Gross property and equipment	121,157,181	120,086,007
Less accumulated depreciation	49,778,052	47,528,188
Net property and equipment	71,379,129	72,557,819
Other Assets
Investments	23,408,910	21,975,507
Grant receivable, net of current portion	2,111,299	2,058,627
Debt issuance costs, net of accumulated amortization (2012 $14,798; 2011 $11,838)	59,190	62,150
Total other assets	25,579,399	24,096,284
Total Assets	114,614,346	120,403,473
Current Liabilities
Current portion long-term debt	32,240	44,959
Accounts payable	6,084,978	4,921,605
Accrued expenses	1,091,292	1,052,325
Derivative instruments	0	287,782
Deferred revenue	443,014	431,931
Total current liabilities	7,651,524	6,738,602
Long-term Liabilities
Deferred compensation	203,556	337,790
Long-term debt, net of current maturities	79,329	108,617
Deferred revenue, net of current portion	1,503,767	1,622,833
Total long-term liabilities	1,786,652	2,069,240
Commitments and Contingencies
Members' Equity (24,460,000 units issued and outstanding)	105,176,170	111,595,631
Total Liabilities and Members’ Equity	$ 114,614,346	$ 120,403,473

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Summary of Significant Accounting Policies

3 Months Ended

Jan. 31, 2012

Item 1 Summary of Significant Accounting Policies [Abstract]

Summary of Significant Accounting Policies

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The accompanying unaudited condensed financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission.  Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted as permitted by such rules and regulations.  These financial statements and related notes should be read in conjunction with the financial statements and notes thereto included in the Company's audited financial statements for the year ended October 31, 2011, contained in the Company's annual report on Form 10-K for 2011.

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

Nature of Business

Golden Grain Energy, LLC (Golden Grain Energy) is approximately a 105 million gallon annual production ethanol plant near Mason City, Iowa. The Company sells its production of ethanol, distiller grains with solubles and corn oil primarily in the continental United States.

Organization

Golden Grain Energy is organized as an Iowa limited liability company.  The members' liability is limited as specified in Golden Grain Energy's operating agreement and pursuant to the Iowa Revised Uniform Limited Liability Company Act. 

Accounting Estimates

Management uses estimates and assumptions in preparing these financial statements in accordance with generally accepted accounting principles.  Those estimates and assumptions affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities, and the reported revenues and expenses. Actual results could differ from those estimates.

Cash and Equivalents

The Company's cash balances are maintained in bank depositories and periodically exceeded federally insured limits during the year. The Company has not experienced any losses in connection with these balances.

Receivables

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

Investments

The Company has less than a 20% investment interest in five unlisted companies in related industries. These investments are being accounted for by the equity method of accounting under which the Company's share of net income is recognized as income in the Company's income statement and added to the investment account. Distributions or dividends received from the investments are treated as a reduction of the investment account.

The fiscal years of Renewable Products Marketing Group, LLC (RPMG), Guardian Eagle, LLC and Guardian Energy Janesville, LLC end on September 30 and the fiscal years of Absolute Energy, LLC and Homeland Energy Solutions, LLC end on December 31. The Company consistently follows the practice of recognizing the net income based on the most recent reliable data. Therefore, the net income which is reported in the Company's income statement for the three months ended January 31, 2012 for all companies is based on the investee's results for the quarter ended December 31, 2011.

Revenue and Cost Recognition

Revenue from the sale of the Company's products is recognized at the time title to the goods and all risks of ownership transfer to the customers.  This generally occurs upon shipment, loading of the goods or when the customer picks up the goods. Collectability of revenue is reasonably assured based on historical evidence of collectability between the Company and its customers. Interest income is recognized as earned.

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

Inventory

Inventories are generally valued at the lower of weighted average cost or market.  In the valuation of inventories and purchase commitments, market is based on current replacement values except that it does not exceed net realizable values and is not less than net realizable values reduced by allowances for approximate normal profit margin.

Investment in commodities contracts, derivative instruments and hedging activities

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

The Company enters into short-term cash, option and futures contracts as a means of securing corn and natural gas for the ethanol plant and managing exposure to changes in commodity and energy prices. We occasionally also enter into derivative contracts to hedge our exposure to price risk as it relates to ethanol sales. As part of its risk management process, the Company uses futures and option contracts through regulated commodity exchanges or through the over-the-counter market to manage its risk related to pricing of inventories. All of the Company's derivatives, other than those excluded under the normal purchases and sales exclusion, are designated as non-hedge derivatives, with changes in fair value recognized in net income. Although the contracts are economic hedges of specified risks, they are not designated or accounted for as hedging instruments.

Realized and unrealized gains and losses related to derivative contracts related to corn and natural gas are included as a component of cost of goods sold and derivative contracts related to ethanol are included as a component of revenues in the accompanying financial statements. The fair values of contracts are presented on the accompanying balance sheet as derivative instruments.

Net income per unit

Basic and diluted earnings per unit are computed using the weighted-average number of Class A and B units outstanding during the period.

Environmental liabilities

The Company's operations are subject to environmental laws and regulations adopted by various governmental authorities in the jurisdiction in which it operates. These laws require the Company to investigate and remediate the effects of the release or disposal of materials at its locations. Accordingly, the Company has adopted policies, practices and procedures in the areas of pollution control, occupational health and the production, handling, storage and use of hazardous materials to prevent material environmental or other damage, and to limit the financial liability which could result from such events. Environmental liabilities are recorded when the Company's liability is probable and the costs can be reasonably estimated. No expense or liability has been recorded as of January 31, 2012 or October 31, 2011 for environmental liabilities.

Fair Value

Financial instruments include cash and equivalents, receivables, due from broker, accounts payable, accrued expenses, long-term debt and derivative instruments. Management believes the fair value of each of these instruments approximates their carrying value as of the balance sheet date. The fair value of derivative financial instruments is based on quoted market prices. The fair value of other current financial instruments is estimated to approximate carrying value due to the short-term nature of these instruments. The fair value of the long-term debt is estimated based on anticipated interest rates which management believes would currently be available to the Company for similar issues of debt, taking into account the current credit risk of the Company and the other market factors.

Risks and Uncertainties

The ethanol industry benefited from the Volumetric Ethanol Excise Tax Credit (VEETC) that provided gasoline blenders a 45-cent per ethanol gallon tax credit (calculated as 4.5 cents per gallon of gasoline that contains at least 10% ethanol) and a 54-cent a gallon tariff on ethanol imports. These provisions expired on December 31, 2011. Although the Renewable Fuels Standard still exists to maintain the demand for ethanol in the United States, the Company is uncertain of the long-term impact that the elimination the VEETC credit and tariff will have on the Company and the overall ethanol industry going forward.

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Inventory

3 Months Ended

Jan. 31, 2012

Item 2 Inventory [Abstract]

Inventory

INVENTORY

Inventory consisted of the following as of January 31, 2012 and October 31, 2011 :

	January 31, 2012		October 31, 2011
Raw Materials	$	4,052,004	$	3,271,262
Work in Process	1,544,175		1,937,325
Finished Goods	4,206,417		677,151
Totals	$	9,802,596	$	5,885,738

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Balance Sheet (Parenthetical) (USD $)	Jan. 31, 2012	Oct. 31, 2011
Debt issuance costs, net of accumulated amortization	$ 14,798	$ 11,838
Members' Equity, units issued and outstanding	24,460,000	24,460,000

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Document and Entity Information	3 Months Ended
	Jan. 31, 2012	Mar. 15, 2012
Entity Information [Line Items]
Entity Registrant Name	GOLDEN GRAIN ENERGY, LLC
Entity Central Index Key	0001206942
Current Fiscal Year End Date	--10-31
Entity Filer Category	Non-accelerated Filer
Document Type	10-Q
Document Period End Date	Jan. 31, 2012
Document Fiscal Year Focus	2012
Document Fiscal Period Focus	Q1
Amendment Flag	false
Entity Common Stock, Shares Outstanding		24,460,000

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Statements of Operations (Unaudited) (USD $)	3 Months Ended
	Jan. 31, 2012	Jan. 31, 2011
Revenues	$ 84,368,277	$ 72,668,264
Cost of Goods Sold	77,421,344	66,767,828
Gross Profit	6,946,933	5,900,436
Operating Expenses	666,979	647,500
Operating Income	6,279,954	5,252,936
Other Income (Expense)
Interest income	790	2,468
Interest expense	(54,886)	(158,051)
Equity in net income of investments	3,253,681	1,365,200
Total Other Income (Expense)	3,199,585	1,209,617
Net Income	$ 9,479,539	$ 6,462,553
Basic & diluted net income per unit	$ 0.39	$ 0.26
Weighted average units outstanding for the calculation of basic & diluted net income per unit	24,460,000	24,460,000
Distributions Per Unit	$ 0.65	$ 0.25

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Risk Management

3 Months Ended

Jan. 31, 2012

Risk Management [Abstract]

Risk Management

RISK MANAGEMENT

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

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

Unrealized gains and losses on forward contracts are deemed "normal purchases" under derivative accounting guidelines and, therefore, are not marked to market in the Company's financial statements. The following table represents the approximate amount of realized gains (losses) and changes in fair value recognized in earnings on commodity contracts for periods ended January 31, 2012 and 2011 and the fair value of derivatives as of January 31, 2012 and October 31, 2011:

	Income Statement Classification	Realized Gain (Loss)			Unrealized Gain (Loss)			Total Gain (Loss)
Derivatives not designated as hedging instruments:
Commodity Contracts for the	Revenue	$	(225,000	)	$	1,918,000		$	1,693,000
three months ending January 31, 2012	Cost of Goods Sold	133,000			(1,580,000		)	(1,447,000		)
	Total	$	(92,000	)	$	338,000		$	246,000
Commodity Contracts for the	Revenue	$	(2,493,000	)	$	(1,000,000	)	$	(3,493,000	)
three months ending January 31, 2011	Cost of Goods Sold	2,925,000			(681,000		)	2,244,000
	Total	$	432,000		$	(1,681,000	)	$	(1,249,000	)

	Balance Sheet Classification	January 31, 2012		October 31, 2011
Futures contracts through July 2012	Current Asset (Liabilities)	$	50,000	$	(288,000	)

As of January 31, 2012, the Company had approximate outstanding commitments for purchases:

	Commitments Through	Amount
Corn - fixed price	October 2012	$	5,142,000
Corn - basis contract	May 2012	25,811,000
Natural Gas - fixed price	August 2015	9,230,850
Ethanol - fixed price	March 2012	6,886,000

As of January 31, 2012, we had price protection in place for approximately 11% of our anticipated corn needs, approximately 15% of our natural gas needs and approximately 7% of our ethanol sales for the next 12 months.

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Commitments, Contingencies and Agreements

3 Months Ended

Jan. 31, 2012

Commitments, Contingencies and Agreements [Abstract]

Commitments, Contingencies and Agreements

COMMITMENTS, CONTINGENCIES AND AGREEMENTS

Ethanol, Distiller Grains and Corn Oil marketing agreements and major customers

The Company has entered into marketing agreements with a marketing company, in which the Company has an investment, for the exclusive rights to market, sell and distribute the entire ethanol, distiller grains and corn oil inventory produced by the Company. The distiller grains agreement was executed in December 2010 for an initial nine month period of time beginning on January 1, 2011 with an automatic extension for an additional one year term unless written notice is given. The marketing fees are presented net in revenues.

Approximate sales and marketing fees related to the agreements in place as of January 31, 2012 are as follows:

	Three Months Ended January 31,
	2012		2011
Sales ethanol & corn oil	$	68,135,000	$	63,572,000
Sales distiller grains	14,679,000		4,221,000
Marketing fees ethanol & corn oil	72,000		146,000
Marketing fees distiller grains	66,000		27,000
As of	January 31, 2012		October 31, 2011
Amount due from marketer of ethanol, distiller grains & corn oil	$	4,212,000	$	14,904,000

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Fair Value Measurements

3 Months Ended

Jan. 31, 2012

Fair Value Measurements [Abstract]

Fair Value Measurements

FAIR VALUE MEASUREMENTS

Financial assets and liabilities carried at fair value are classified and disclosed in one of the following three categories:

Level 1: Valuations for assets and liabilities traded in active markets from readily available pricing sources for market transactions involving identical assets or liabilities.

Level 2: Valuations for assets and liabilities traded in less active dealer or broker markets. Valuations are obtained from third-party pricing services for identical or similar assets or liabilities.

Level 3: Valuations incorporate certain assumptions and projections in determining the fair value assigned to such assets or liabilities.

A description of the valuation methodologies used for instruments measured at fair value, including the general classification of such instruments pursuant to the valuation hierarchy, is set forth below.

Derivative financial instruments: Commodity futures and exchange-traded commodity options contracts are reported at fair value utilizing Level 1 inputs. For these contracts, the Company obtains fair value measurements from an independent pricing service. The fair value measurements consider observable data that may include dealer quotes and live trading levels from markets such as the CME and NYMEX.  Crush swaps are bundled contracts or combined contracts that include a portion of corn, ethanol and natural gas rolled into a single trading instrument. These contracts are reported at fair value utilizing Level 2 inputs and are based on the various trading activity of the components of each segment of the bundled contract.

The following table summarizes financial assets and financial liabilities measured at the approximate fair value on a recurring basis, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value:

	Total			Level 1		Level 2			Level 3
Asset (Liabilities), derivative financial instruments
January 31, 2012	$	50,000		$	—	$	50,000		$	—
October 31, 2011	$	(288,000	)	—		$	(288,000	)	—

Certain financial assets and financial liabilities are measured at fair value on a nonrecurring basis; that is, the instruments are not measured at fair value on an ongoing basis but are subject to fair value adjustments in certain circumstances, for example, when there is evidence of impairment.

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Investments

3 Months Ended

Jan. 31, 2012

Investments [Abstract]

Investments

INVESTMENTS

Condensed, consolidated financial information of the Company’s investment in Absolute Energy, Homeland Energy Solutions, Guardian Eagle, Guardian Energy and RPMG is as follows (in 000’s)

Balance Sheet	12/31/2011		9/30/2011
Current Assets	$	244,318	$	268,721
Other Assets	331,321		346,004
Current Liabilities	162,689		184,981
Long-term Debt	73,392		101,294
Members’ Equity	339,558		328,450
	Three Months Ended
Income Statement	12/31/2011		12/31/2010
Revenue	$	299,825	$	234,068
Gross Profit	48,813		24,890
Net Income	42,709		17,612

The Company recorded equity in net income from investments related to the entities described above of $3,253,681 and $1,365,200 for the three months ended January 31, 2012 and 2011, respectively.

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Statements of Cash Flows (Unaudited) (USD $)	3 Months Ended
	Jan. 31, 2012	Jan. 31, 2011
Cash Flows from Operating Activities
Net income	$ 9,479,539	$ 6,462,553
Adjustments to reconcile net income to net cash from operating activities:
Depreciation and amortization	2,252,824	2,305,186
Unrealized (gain) on risk management activities	(337,319)	(1,450,408)
Amortization of deferred revenue	(107,983)	(98,422)
Accretion of interest on grant receivable	(47,297)	(46,265)
Earnings in excess of distributions from investments	(1,433,403)	(1,365,200)
Deferred compensation expense	24,509	45,970
Change in assets and liabilities
Accounts receivable	10,654,182	1,684,288
Inventory	(3,916,858)	(2,276,604)
Due from broker	(104,396)	1,620,540
Prepaid expenses and other	(852,069)	(367,485)
Accounts payable	1,163,373	883,056
Accrued expenses	38,967	84,417
Deferred compensation payable	(158,743)	(91,595)
Net cash provided by operating activities	16,655,326	7,390,031
Cash Flows from Investing Activities
Capital expenditures	(1,071,174)	(616,193)
Net cash (used in) investing activities	(1,071,174)	(616,193)
Cash Flows from Financing Activities
Increase (decrease) in outstanding checks in excess of bank balance	0	524,888
Payments for long-term debt	(42,007)	(1,435,549)
Distributions to members	(15,899,000)	(6,115,000)
Payments received on grant receivable	0	252,720
Net cash (used in) in financing activities	(15,941,007)	(6,772,941)
Net Increase (Decrease) in Cash and Equivalents	(356,855)	897
Cash and Equivalents – Beginning of Period	485,088	119,386
Cash and Equivalents – End of Period	128,233	120,283
Supplemental Cash Flow Information
Cash paid for interest	$ 53,391	$ 169,704

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Employee Benefit Plan

3 Months Ended

Jan. 31, 2012

Employee Benefit Plans [Abstract]

Employee Benefit Plans

EMPLOYEE BENEFIT PLANS

The Company has a deferred phantom unit compensation plan for certain employees equal to 1% of net income. One-third of the amount is paid in cash immediately and the other two-thirds have a vesting schedule of up to five years. During the three months ended January 31, 2012 and 2011, the Company recorded compensation expense related to this plan of approximately $25,000 and $46,000, respectively. As of January 31, 2012, and October 31, 2011, the Company had a liability of approximately $204,000 and $338,000 outstanding as deferred compensation and has approximately $41,000 to be recognized as future compensation expense. Two of the employees covered under this plan are fully vested, one employee has a vesting schedule of less than one year and another employee has approximately five years left to vest. The amount to be recognized in future years as compensation expense is estimated based on the greater of fair market value or book value of the Company's membership units as of January 31, 2012. Fair value is determined by recent trading activity of the Company's membership units. The Company had approximately 13,000 unvested equivalent phantom units outstanding under this plan as of January 31, 2012.