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, 2013
	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, 2013, there were 18,963,000 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	15
Item 3. Quantitative and Qualitative Disclosures about Market Risk	20
Item 4. Controls and Procedures	21
PART II. OTHER INFORMATION	22
Item 1. Legal Proceedings	22
Item 1A. Risk Factors	22
Item 2. Unregistered Sales of Equity Securities	22
Item 3. Defaults Upon Senior Securities	22
Item 4. Mine Safety Disclosures	22
Item 5. Other Information	22
Item 6. Exhibits	23
SIGNATURES	23

2

PART I    FINANCIAL INFORMATION

Item 1. Financial Statements

GOLDEN GRAIN ENERGY, LLC

Balance Sheet

ASSETS	January 31, 2013		October 31, 2012
	(Unaudited)		(Audited)
Current Assets
Accounts receivable	$	7,466,209	$	6,733,711
Other receivables	1,061,170		860,725
Derivative instruments	590,472		414,646
Inventory	14,178,324		9,893,958
Prepaid expenses and other	1,691,325		1,312,326
Total current assets	24,987,500		19,215,366
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		13,457,627
Office equipment	320,345		320,345
Plant and process equipment	75,454,525		75,454,525
Construction in progress	2,545,895		1,482,255
	128,802,477		127,738,837
Less accumulated depreciation	58,975,472		56,617,389
Net property and equipment	69,827,005		71,121,448
Other Assets
Investments	23,074,690		23,602,518
Grant receivable, net of current portion	1,480,180		1,457,420
Debt issuance costs, net of accumulated amortization (2013 $29,565; 2012 $26,635)	69,881		50,312
Total other assets	24,624,751		25,110,250
Total Assets	$	119,439,256	$	115,447,064

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

3

GOLDEN GRAIN ENERGY, LLC

Balance Sheet

LIABILITIES AND MEMBERS' EQUITY	January 31, 2013		October 31, 2012
	(Unaudited)		(Audited)
Current Liabilities
Outstanding checks in excess of bank balance	$	596,384	$	360,338
Current portion long-term debt	35,149		34,454
Accounts payable	6,336,437		6,705,426
Accrued expenses	1,023,533		951,126
Deferred revenue	464,379		415,345
Total current liabilities	8,455,882		8,466,689
Long-term Liabilities
Deferred compensation	190,418		243,122
Long-term debt, net of current maturities	25,499,497		2,742,744
Deferred revenue, net of current portion	1,363,220		1,300,513
Total long-term liabilities	27,053,135		4,286,379
Commitments and Contingencies
Members' Equity (19,883,000 and 24,460,000 units issued and outstanding, respectively )	83,930,239		102,693,996
Total Liabilities and Members’ Equity	$	119,439,256	$	115,447,064

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, 2013			January 31, 2012
Revenues	$	85,408,162		$	84,368,277
Cost of Goods Sold	86,373,717			77,421,344
Gross Profit (Loss)	(965,555		)	6,946,933
Operating Expenses	771,383			666,979
Operating Income (Loss)	(1,736,938		)	6,279,954
Other Income (Expense)
Other income	—			790
Interest expense	(123,233		)	(54,886		)
Equity in net income of investments	96,414			3,253,681
Total	(26,819		)	3,199,585
Net Income (Loss)	$	(1,763,757	)	$	9,479,539
Basic & diluted net income (loss) per unit	$	(0.08	)	$	0.39
Weighted average units outstanding for the calculation of basic & diluted net income (loss) per unit	22,934,333			24,460,000
Distributions Per Unit	$	—		$	0.65

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

5

GOLDEN GRAIN ENERGY, LLC

Statements of Cash Flows (Unaudited)

	Three Months Ended			Three Months Ended
	January 31, 2013			January 31, 2012
Cash Flows from Operating Activities
Net income (loss)	$	(1,763,757	)	$	9,479,539
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	2,361,014			2,252,824
Unrealized (gain) on risk management activities	(175,826		)	(441,715		)
Amortization of deferred revenue	(113,259		)	(107,983		)
Accretion of interest on grant receivable	(30,524		)	(47,297		)
Earnings in excess of (less than) distributions from investments	436,632			(1,433,403		)
Deferred compensation expense	15,187			24,509
Change in assets and liabilities
Accounts receivable	(732,498		)	10,654,182
Inventory	(4,284,366		)	(3,916,858		)
Prepaid expenses and other	(571,680		)	(852,069		)
Accounts payable	(164,178		)	1,163,373
Accrued expenses	72,407			38,967
Deferred compensation payable	(67,891		)	(158,743		)
Net cash provided by (used in) operating activities	(5,018,739		)	16,655,326
Cash Flows from Investing Activities
Capital expenditures	(1,268,451		)	(1,071,174		)
Net cash (used in) investing activities	(1,268,451		)	(1,071,174		)
Cash Flows from Financing Activities
Increase in outstanding checks in excess of bank balance	236,046			—
Proceeds from long-term debt	22,848,644			—
Payments for long-term debt	—			(42,007		)
Payments for offering costs	(22,500		)	—
Redemption of membership units	(17,000,000		)	—
Distributions to members	—			(15,899,000		)
Payments received on deferred contract	225,000			—
Net cash provided by (used in) financing activities	6,287,190			(15,941,007		)
Net Increase (Decrease) in Cash and Equivalents	—			(356,855		)
Cash and Equivalents – Beginning of Period	—			485,088
Cash and Equivalents – End of Period	$	—		$	128,233
Supplemental Cash Flow Information
Cash paid for interest	$	71,162		$	53,391
Supplemental Schedule of Non Cash Activities
Accounts Payable related to Construction in Process	$	(204,811	)	$	—

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

6

GOLDEN GRAIN ENERGY, LLC

Statements of Changes in Members' Equity

For the three months ended January 31, 2013

Balance - October 31, 2012	102,693,996
Redemption of 4,577,000 membership units	(17,000,000	)
Net Loss	(1,763,757	)
Balance - January 31, 2013	83,930,239

7

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, 2012, contained in the Company's annual report on Form 10-K for 2012.

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 110 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 four 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) 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, 2013 for all companies is based on the investee's results for the quarter ended December 31, 2012.

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

8

GOLDEN GRAIN ENERGY, LLC

Notes to Financial Statements

(Unaudited)

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.

Property & Equipment

The Company incurred site selection and plan development costs on the proposed site that were capitalized. Significant additions, betterments and costs to acquire land options are capitalized, while expenditures for maintenance and repairs are charged to operations when incurred. Property and equipment are stated at costs. The Company uses the straight-line method of computing depreciation over the estimated useful lives between 5 and 40 years.

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

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 of cash due from/to broker.

Net income (loss) per unit

Basic and diluted net income (loss) 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, 2013 or October 31, 2012 for environmental liabilities.

9

GOLDEN GRAIN ENERGY, LLC

Notes to Financial Statements

(Unaudited)

Fair Value of financial instruments

Financial instruments include cash and equivalents, receivables, accounts payable, accrued expenses, long-term debt and derivative instruments. The fair value of derivative financial instruments is based on quoted market prices. The fair value of the long-term debt is estimated based on level 3 inputs based on the current anticipated interest rate 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. Due to the variable nature of the interest rate charged against the debt the fair value of the debt approximates carrying value. The fair value of other current financial instruments is estimated to approximate carrying value due to the short-term nature of these instruments.

Risks and Uncertainties

The Company has certain risks and uncertainties that it will experience during volatile market conditions, which can have a severe impact on operations. The Company's revenues are derived from the sale and distribution of ethanol, distiller grains and corn oil to customers primarily located in the United States. Corn for the production process is supplied to the plant primarily from local agricultural producers and from purchases on the open market. For the first three months of 2013, ethanol sales accounted for approximately 74% of total revenue, distiller grains sales accounted for approximately23% of total revenue and corn oil sales accounted for approximately 3% of total revenue while corn costs averaged approximately 87% of cost of goods sold.

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

Reclassification

Certain items in the cash flow statement for the period ended January 31, 2012 have been reclassified to conform to the 2013 classification. The changes were made to agree with the classification used in the January 31, 2013 financial statements.

2.    INVENTORY

Inventory consisted of the following as of January 31, 2013 and October 31, 2012:

	January 31, 2013		October 31, 2012
Raw Materials	$	7,076,151	$	3,049,045
Work in Process	2,453,483		2,449,296
Finished Goods	4,648,690		4,395,617
Totals	$	14,178,324	$	9,893,958

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 original maximum borrowings of $30,000,000 and $5,000,000, respectively, and maturing on February 1, 2019 and February 1, 2020, respectively. Interest on the term loan is payable monthly at 3.15% above the one-month LIBOR (3.36% as of January 31, 2013). The borrowings are secured by substantially all the assets of the Company. On December 26, 2012, the Company executed an amended credit agreement that increased the total loan availability from $22.5 million to $35 million. The revolving term loan maximum borrowings are reduced by $2,500,000 on a semi-annual basis starting in August 2013.

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, 2013, the Company had approximately $25,458,000 outstanding and $9,542,000 total additional available to borrow under the credit agreement.

10

GOLDEN GRAIN ENERGY, LLC

Notes to Financial Statements

(Unaudited)

The Company has other notes payable of approximately $77,000 and $154,000 outstanding as of January 31, 2013 and October 31, 2012, respectively.

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, 2013 totaled approximately $19,317,000. Purchases during the same period of 2012 totaled approximately $32,840,000.

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 $66,000 to operating expenses during the three months ended January 31, 2013 and $52,000 for the same period of 2012.

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 five year vesting schedule. During the three months ended January 31, 2013, the Company recorded compensation expense related to this plan of approximately $15,000. During the same periods of 2012, the Company recorded compensation expense related to this plan of approximately $25,000. As of January 31, 2013, and October 31, 2012, the Company had a liability of approximately $190,000 and $243,000 outstanding as deferred compensation and has approximately $9,200 to be recognized as future compensation expense. Three of the employees covered under this plan are fully vested and another employee has approximately three 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, 2013. Fair value is determined by recent trading activity of the Company's membership units. The Company had approximately 2,700 unvested equivalent phantom units outstanding under this plan as of January 31, 2013.

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 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 and automatically extends 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, 2013 are as follows:

	Three Months Ended January 31,
	2013		2012
Sales ethanol, distiller grains & corn oil	$	85,710,000	$	82,814,000
Marketing fees	146,000		138,000
	As of
	January 31, 2013		October 31, 2012
Amount due from marketer of ethanol, distiller grains & corn oil	$	7,365,000	$	6,216,000

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

11

GOLDEN GRAIN ENERGY, LLC

Notes to Financial Statements

(Unaudited)

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, 2013 and 2012 and the fair value of derivatives as of January 31, 2013 and October 31, 2012:

	Income Statement Classification	Realized Gain (Loss)			Change in Unrealized Gain (Loss)			Total Gain (Loss)
Derivatives not designated as hedging instruments:
Commodity Contracts for the	Revenue	$	134,000		$	(290,000	)	$	(156,000	)
three months ending January 31, 2013	Cost of Goods Sold	855,000			29,000			884,000
	Total	989,000			(261,000		)	728,000
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

	Balance Sheet Classification	January 31, 2013			October 31, 2012
Futures and option contracts through May 2013
In gain position		$	199,000		$	486,000
In loss position		$	(951,000	)	$	(977,000	)
Cash held by broker		$	1,342,000		$	906,000
	Current Asset	$	590,000		$	415,000

As of January 31, 2013, the Company had outstanding purchase commitments of which approximately $13,766,000 were with related parties:

	Commitments Through	Amount
Corn - fixed price	July 2013	$	10,436,000
Corn - basis contract	May 2013	31,601,000
Natural Gas - fixed price	August 2015	7,941,000

12

GOLDEN GRAIN ENERGY, LLC

Notes to Financial Statements

(Unaudited)

As of January 31, 2013, the Company has fixed price contracts in place for approximately 12% of our anticipated corn needs, approximately 23% of our natural gas needs and approximately 5% 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
Derivative financial instruments
January 31, 2013
Assets	$	199,000		—	$	199,000		—
Liabilities	$	(951,000	)	—	$	(951,000	)	—
October 31, 2012
Assets	$	486,000		—	$	486,000		—
Liabilities	(977,000		)	—	(977,000		)	—

13

GOLDEN GRAIN ENERGY, LLC

Notes to Financial Statements

(Unaudited)

9. INVESTMENTS

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

Balance Sheet	12/31/2012		9/30/2012
Current Assets	$	246,929	$	234,095
Other Assets	304,214		313,018
Current Liabilities	178,934		163,804
Long-term Debt	63,063		40,396
Members’ Equity	309,146		332,913
	Three Months Ended
Income Statement	12/31/2012		12/31/2011
Revenue	$	263,734	$	299,825
Gross Profit	7,409		48,813
Net Income	2,829		42,709

The Company recorded equity in net income from investments related to the entities described above of approximately $96,000 for the three months ended January 31, 2013. For the three months ended January 31, 2012 the Company recorded equity in net income from these entities of approximately $3,254,000.

14

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 the Renewable Fuel Standard, implementation of E15 or any federal and/or state ethanol tax incentives);

• 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 110 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, LLC, the parent company of RPMG, which allows us to realize favorable marketing fees in the sale of our ethanol, distiller grains and corn oil.

On December 12, 2012, we executed an agreement with our largest member to repurchase and retire all of the units owned by this member. We agreed to close on this repurchase prior to December 31, 2012. We repurchased and retired 4,577,000 membership units in exchange for $17 million. In order to finance this repurchase, we entered into amended credit agreements, described below, with our primary lender, Farm Credit Services of America, FLCA and Farm Credit Services of America, PCA (collectively "Farm Credit").

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On December 26, 2012, we executed amended credit agreements with Farm Credit. The primary purposes of these credit agreement amendments were to increase the amount that we have available to borrow on our long-term revolving loans and to amend our financial loan covenants. Specifically, we executed an amendment to the Master Loan Agreement, a $30 million Revolving Term Loan Supplement and a $5 million Revolving Term Loan Supplement.

Pursuant to the amended credit agreements, Farm Credit increased our credit availability on our long-term revolving loans from $22.5 million to $35 million. In addition, the amended credit agreements increased our minimum working capital covenant from $12 million to $15 million and reduced our minimum tangible net worth covenant from $62.5 million to $55 million. Our $30 million Revolving Term Loan is subject to a reducing feature which provides that the amount of capital we can borrow decreases by $2.5 million semi-annually starting on August 1, 2013 and continuing until this revolving loan matures on February 1, 2019. Our $5 million Revolving Term Loan is not subject to any reductions until it matures on February 1, 2020.

In 2011, the European Union launched anti-dumping and anti-subsidy investigations related to ethanol exports from the United States. In August 2012, the European Union concluded the anti-subsidy investigation and decided not to impose a tariff related to the anti-subsidy portion of the investigation due to the fact that the VEETC blenders credit had expired. However, the European Union decided to impose a 9.6% tariff on ethanol imported from the United States based on the anti-dumping portion of the investigation. Management anticipates that this will result in decreased ethanol exports to Europe.

Results of Operations for the Three Months Ended January 31, 2013 and 2012

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, 2013 and 2012:

	2013					2012
Income Statement Data	Amount			%		Amount		%
Revenue	$	85,408,162		100.0		$	84,368,277	100.0
Cost of Goods Sold	86,373,717			101.1		77,421,344		91.8
Gross Profit (Loss)	(965,555		)	(1.1	)	6,946,933		8.2
Operating Expenses	771,383			0.9		666,979		0.8
Operating Income (Loss)	(1,736,938		)	(2.0	)	6,279,954		7.4
Other Income (Expense)	(26,819		)	—		3,199,585		3.8
Net Income (Loss)	$	(1,763,757	)	(2.1	)	$	9,479,539	11.2

Revenue. Our total revenue was higher for our first quarter of 2013 compared to the same period of 2012, primarily due to increased distiller grains and corn oil revenue during the 2013 period. For our first quarter of 2013, ethanol sales accounted for approximately 74% of our total revenue, distiller grains sales accounted for approximately 23% of our total revenue and corn oil sales accounted for approximately 3% of our total revenue. For our 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.

The average price we received for our ethanol during our first quarter of 2013 was approximately 3% lower than the average price we received for the same period of 2012. Management attributes this decrease in the average price we received for our ethanol with decreased ethanol demand compared to ethanol supplies as the industry continues to experience higher imports and stable demand. Management believes that without an increase in the amount of ethanol that can be blended with gasoline for use in standard (non-flex fuel) vehicles, ethanol demand will not significantly increase. Further, since ethanol is typically blended with gasoline, when gasoline demand is lower it negatively impacts ethanol demand. Recent increases in gasoline prices have negatively impacted ethanol demand and prices.

Our total ethanol gallons sold decreased by approximately 1% during our first quarter of 2013 compared to the same period of 2012 due to decreased ethanol production. We have continued to work to improve our efficiency and production per bushel during our first quarter of 2013 with increased fermentation times which has resulted in decreased total ethanol production for the first quarter of 2013 compared to the same period of 2012. Management anticipates that ethanol sales will remain relatively consistent during the remaining quarters of our 2013 fiscal year provided that we can continue to secure corn at prices that allow us to generate positive cash flows from our operations. Management anticipates improved operating margins in the ethanol industry during our second quarter of 2013 which may lead to increased ethanol production. However, management anticipates that ethanol

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imports from Brazil may increase during our third quarter of 2013 which may have a negative impact on our operating margins. We anticipate continued volatility in the ethanol market as we experience relatively stable demand and shifting ethanol supply.

The average price we received for our distiller grains increased during our first quarter of 2013 compared to the same period of 2012. Management attributes this increase in distiller grains prices with higher corn prices which typically positively impact distiller grains prices and a tight corn supply which is keeping the price of distiller grains up in relationship to the price of corn. The average price we received for our dried distiller grains during our first quarter of 2013 was approximately 35% greater than the same period of 2012. The average price we received for our modified/wet distiller grains during our first quarter of 2013 was approximately 116% greater than during the same period of 2012. We typically market the vast majority of our distiller grains in the dried form compared to the modified/wet form due to market conditions which favor dried distiller grains. Management makes decisions regarding what form of distiller grains we produce and sell based on these market conditions. Management anticipates that distiller grains prices will continue to fluctuate in relationship to corn prices. We continue to experience strong export demand for distiller grains which management attributes to higher corn prices and higher world demand for animal feed.

We sold approximately 4% less tons of distiller grains during our first quarter of 2013 compared to the same period of 2012. Management attributes the decrease in distiller grain sales to increased production of corn oil, on a per bushel basis, by the ethanol plant and decreased production of ethanol. Since distiller grains are a co-product of the ethanol production process, when ethanol production decreases it results in a decrease in distiller grains production. Management anticipates relatively consistent distiller grains production during the remaining quarters of our 2013 fiscal year.

The average price we received for our corn oil during our first quarter of 2013 was approximately 17% lower than during the same period of 2012. Management attributes this decrease in the average price we received for our corn oil with increased corn oil supplies and lower corn oil demand due to reduced biodiesel production. Management anticipates that corn oil prices will continue at the recent levels provided that corn oil demand for biodiesel production remains consistent and the corn oil supply does not increase significantly. We sold approximately the same amount of corn oil during our first quarter of 2013 compared to the same period of 2012. Management anticipates continued strong corn oil sales for the remainder of the 2013 fiscal year.

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 loss of approximately $156,000 during our first quarter of 2013. For our first quarter of 2012, we had a combined realized and unrealized gain on our ethanol derivative instrument positions of approximately $1,693,000. 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 13% during our first quarter of 2013 compared to the same period of 2012. Our average cost per bushel of corn during our first quarter of 2013 was approximately 21% higher than during the same period of 2012. Management attributes this increase in corn costs with tighter corn supplies and concerns regarding continued drought conditions during 2013. Corn prices have been volatile during our last two fiscal years and management anticipates that corn prices will continue to be volatile during our 2013 fiscal year and beyond.

Our corn consumption was approximately 6% lower during our first quarter of 2013 compared to the same period of 2012 because of our increased operating efficiency and lower ethanol production. Management anticipates that our corn consumption will remain relatively consistent during the remaining quarters of our 2013 fiscal year. Management continues to work to maximize the amount of ethanol that we produce per bushel of corn in order to reduce our cost of goods sold.

Our natural gas costs increased by approximately 4% during our first quarter of 2013 compared to the same period of 2012. The average price we paid per mmBtu of natural gas increased by approximately 8% for our first quarter of 2013 compared to the same period of 2012. Management attributes this increase in the average price we paid for our natural gas with certain natural gas commitments we have in place which are at rates higher than current market prices. Management anticipates that natural gas prices will continue at their current levels unless the natural gas industry experiences production problems or large demand increases. Management believes that the United States may start exporting natural gas in the future which could increase natural gas demand and result in higher domestic natural gas prices. Our natural gas consumption was approximately 4% lower during our first quarter of 2013 compared to the same period of 2012 because of decreased production.

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 gain of approximately $884,000 during our first quarter of 2013. For our first quarter of 2012, our derivative instrument positions resulted in a combined realized and unrealized loss of approximately $1,447,000. 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.

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Operating Expenses. Our operating expenses were higher for our first quarter of 2013 compared to the same period of 2012 due primarily to ethanol promotion related to various industry groups which we support.

Other Income (Expense). Our interest expense was higher during our first quarter of 2013 compared to the same period of 2012 due to increased borrowing on our credit facilities with Farm Credit. Our equity in the net income of our investments decreased during our first quarter of 2013 compared to the same period of 2012 due primarily to market conditions in the ethanol industry which negatively impacted results throughout the industry. Our investments are primarily in other companies involved in the ethanol industry.

Changes in Financial Condition for the Three Months Ended January 31, 2013

Current Assets. The increase in our accounts receivable at January 31, 2013 compared to October 31, 2012 was due to the timing of our quarter end with respect to payments we received from our marketer. The value of our inventory was higher at January 31, 2013 compared to October 31, 2012 due to having a higher quantity of corn and finished goods inventory on hand at January 31, 2013 compared to October 31, 2012. Our prepaid expenses were higher at January 31, 2013 compared to October 31, 2012 primarily due to insurance premium payments we make in November of each year which represent our premiums for the entire year.

Property and Equipment. The net value of our property and equipment was lower at January 31, 2013 compared to October 31, 2012 due to depreciation. We had approximately $2.5 million in construction in progress at January 31, 2013 related to our grain handling system upgrade and expansion project which we anticipate will be complete at the end of March 2013.

Other Assets. Our other assets at January 31, 2013 were comparable to October 31, 2012. We paid our primary lender $22,500 for the increase in our credit facility during the first fiscal quarter of 2013.

Current Liabilities. Our current liabilities were comparable at January 31, 2013 and October 31, 2012. Checks issued in excess of our bank balances are paid from our line of credit with Farm Credit when the checks are presented for payment.

Long-term Liabilities. Our long-term liabilities were higher at January 31, 2013 compared to October 31, 2012, primarily due to a loan balance of approximately $25,458,000 we had outstanding with Farm Credit. This increase in our long-term debt relates primarily to our repurchase of membership units owned by our largest equity holder in December 2012 and also from increases in both corn and ethanol finished goods inventory. Deferred compensation liabilities were lower at January 31, 2013 compared to October 31, 2012 due to payments we made for deferred compensation.

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, 2013, we had approximately $9,542,000 available pursuant to our variable line of credit.

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.

We do not currently anticipate any significant purchases of property and equipment, beyond our current grain handling system upgrade and expansion, 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, 2013 and 2012:

	Three Months Ended January 31,
	2013			2012
Net cash (used in) provided by operating activities	$	(5,018,739	)	$	16,655,326
Net cash (used in) investing activities	(1,268,451		)	(1,071,174		)
Net cash provided by (used in) financing activities	6,287,190			(15,941,007		)

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Cash Flow From Operations

Our cash flow from operations for the first three months of 2013 was lower primarily due to a decrease in our net income compared to the same period of 2012. Further, during the 2012 period, a decrease in accounts receivable had a significant positive impact on our cash flow during that period.

Cash Flow From Investing Activities

We used less cash for investing activities during the first three months of 2013 compared to the same period of 2012 primarily due to having less capital expenditures. Our primary capital expenditure during the 2013 period was for our grain handling upgrade project.

Cash Flow From Financing Activities.

During the first three months of 2013, we received proceeds from our long-term debt which we used to fund our unit repurchase in December 2012. We primarily used cash for financing activities during the 2012 period for a distribution we made to our members.

Short-Term and Long-Term Debt Sources

We have a $35 million credit facility with Farm Credit. In exchange for this $35 million 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.

Variable Lines of Credit

We have a long-term revolving line of credit with an original available amount of $35 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, 2013 and continuing until February 1, 2019. After February 1, 2019, we will have $5 million available pursuant to this long-term revolving line of credit until it matures on February 1, 2020. 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 pay an annual fee of 0.6% of the unused portion of this loan. As of January 31, 2013, we had approximately $25,458,000 outstanding on this loan with an accrued interest rate of 3.36% per year. As of January 31, 2013, we had approximately $9,542,000 available to be drawn on this loan.

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, 2013, 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

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 $9 million, which will be paid semi-annually over a 10-year period with the final payment being made in 2019.

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

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Interest Rate Risk

We are exposed to market risk from changes in interest rates. Exposure to interest rate risk results primarily from holding revolving lines of credit which bear variable interest rates. Specifically, we had approximately $25.5 million outstanding in variable rate debt as of January 31, 2013. The approximate change to our income for a twelve month period based on a 10% adverse change in interest rates for our variable rate debt as of January 31, 2013 would be approximately $86,000.

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, 2013, we had price protection in place for approximately 12% of our anticipated corn needs, approximately 23% of our natural gas needs and approximately 5% of our ethanol sales for the next 12 months.

A sensitivity analysis has been prepared to estimate our exposure to ethanol, corn and natural gas price risk. Market risk related to these factors is estimated as the potential change in income resulting from a hypothetical 10% adverse change in the average cost of our corn and natural gas prices and average ethanol price as of January 31, 2013, net of the forward and future contracts used to hedge our market risk for corn and natural gas usage requirements. The volumes are based on our expected use and sale of these commodities for a one year period from January 31, 2013. 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	1,294,000	MMBTU	10%	$	483,000
Ethanol	104,624,000	Gallons	10%	$	23,237,000
Corn	33,989,497	Bushels	10%	$	25,033,000

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, 2013. 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,

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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, 2013, 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, 2012, included in our annual report on Form 10-K.

If exports to Europe are decreased due to the imposition by the European Union of a tariff on U.S. ethanol, ethanol prices may be negatively impacted. The European Union recently concluded an anti-dumping investigation related to ethanol produced in the United States and exported to Europe. As a result of this investigation, the European Union has imposed a tariff of $83.03 per metric ton on ethanol which is produced in the United States and exported to Europe. If exports of ethanol to Europe decrease as a result of this tariff, it could negatively impact the market price of ethanol in the United States. Any decrease in ethanol prices or demand may negatively impact our ability to profitably operate the ethanol plant.

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

ISSUER PURCHASES OF EQUITY SECURITIES

During our first quarter of 2013, we made the following repurchases of our membership units.

Period	Total number of units purchased	Average price paid per unit		Total number of units purchased as part of publicly announced plans or programs	Maximum number of units that may be yet be purchased under the plans or programs
November 2012	—	$	—	—	—
December 2012	4,577,000(1)	3.71		—	—
January 2013	—	—		—	—
Total	4,577,000	$	3.71	—	—

⁽¹⁾ This repurchase was a privately negotiated transaction.

Item 3. Defaults Upon Senior Securities

None.

Item 4.Mine Safety Disclosures.

None.

Item 5.Other Information

None.

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Item 6. Exhibits.

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

Exhibit No.	Exhibit
3.1	Second Amendment to the Third Amended and Restated Operating Agreement of Golden Grain Energy, LLC *
10.1	Membership Unit Repurchase Agreement dated December 12, 2012 between Golden Grain Energy, LLC and Steven Retterath. *
10.2	Amendment to the Master Loan Agreement dated December 26, 2012 between Golden Grain Energy, LLC and Farm Credit Services of America, FLCA and Farm Credit Services of America, PCA. *
10.3	Revolving Term Loan Supplement dated December 26, 2012 between Golden Grain Energy, LLC and Farm Credit Services of America, FLCA and Farm Credit Services of America, PCA. *
10.4	$5,000,000 Revolving Term Loan Supplement dated December 26, 2012 between Golden Grain Energy, LLC and Farm Credit Services of America, FLCA and Farm Credit Services of America, PCA. *
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, 2013, formatted in XBRL (eXtensible Business Reporting Language): (i) Balance Sheets as of January 31, 2013 and October 31, 2012, (ii) Statements of Operations for the three months ended January 31, 2013 and 2012, (iii) Statements of Cash Flows for the three months ended January 31, 2013 and 2012, 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, 2013	/s/ Walter Wendland
		Walter Wendland
		President and Chief Executive Officer
		(Principal Executive Officer)
Date:	March 15, 2013	/s/ Christine Marchand
		Christine Marchand
		Chief Financial Officer
		(Principal Financial and Accounting Officer)

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EX-3.1

SECOND AMENDMENT TO THE

THIRD AMENDED AND RESTATED OPERATING AGREEMENT

OF GOLDEN GRAIN ENERGY, LLC

THIS SECOND 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 25th day of February, 2013, by the affirmative vote of members holding a majority of the units of Golden Grain Energy, LLC (the “Company”) represented at the 2013 Annual Meeting, held on February 25, 2013, 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 5.2(b) of the Operating Agreement is removed in its entirety and is replaced by the following:

Members Entitled to Elect Directors. Elected Directors shall be elected by the Class A and Class B Unit Holders, voting collectively, at the annual meeting of Unit Holders in 2003 and at each subsequent annual meeting of Unit Holders when a vacancy exists, provided, however, that any Class A Unit Holder who is authorized to appoint a Director pursuant to Section 5.1(c), or any Person directly or indirectly controlling, controlled by or under common control with such Class A Unit Holder who is authorized to appoint a Director pursuant to Section 5.1(c), shall not be entitled to vote for the election of any other Directors that the Unit Holders are entitled to elect, and the Units held by such Class A Unit Holder, or any Person directly or indirectly controlling, controlled by or under common control with such Person, shall not be included in determining the election of Directors pursuant to subparagraph (d) of this Section 5.2. For purposes of this Section 5.2(b), the terms “controlling,” “controlled by” or “under common control with” shall mean the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of a Person, whether through the ownership of voting securities, by contract or otherwise, or the power to elect at least 50% of the directors, members, or persons exercising similar authority with respect to such Person.

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 members holding a majority of the units of the Company at a meeting of the members held on February 25, 2013, at which a quorum was present, in accordance with the provisions of the Operating Agreement.

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

EX-10.1

MEMBERSHIP UNIT REPURCHASE AGREEMENT

THIS MEMBERSHIP UNIT REPURCHASE AGREEMENT, (the “Agreement”) is executed as of December 12, 2012 (the “Effective Date”), by and between GOLDEN GRAIN ENERGY, LLC, an Iowa limited liability company (the “Company”); STEVEN J. RETTERATH, an individual resident of Florida (“Retterath”); POMPANO BEACH HOLDINGS, LLC, a Florida limited liability company (“Pompano”); and DELRAY LAND HOLDINGS, LLC, a Florida limited liability company (“Delray”). Collectively, Retterath, Pompano and Delray are referred to herein as the “Members.”

W I T N E S S E T H:

WHEREAS, Retterath is the owner of One Million (1,000,000) of the Company's membership units represented by Certificate Number A1132; Pompano is the owner of One Million (1,000,000) of the Company's membership units represented by Certificate Number A1130; and Delray is the owner of Two Million Five Hundred Seventy-Seven Thousand (2,577,000) of the Company's membership units represented by Certificates Numbered A1129 and A1131 (collectively the “Units”); and

WHEREAS, the Company desires to repurchase and retire, and the Members desires to have the Company repurchase and retire, the Units pursuant to the terms and conditions set forth below.

NOW, THEREFORE, for good and valuable consideration given, received and acknowledged, the parties agree as follows:

1.Repurchase. At the Closing (as hereinafter defined), the Company shall repurchase all, but not less than all, of the Units from the Members, free and clear of all liens, security interests, claims and encumbrances, and the Members' interests in the Company shall be terminated. The Members acknowledge and agree that the Members shall not be entitled to receive any distribution of income from the Company or exercise any rights as a member of the Company following the Closing. THIS AGREEMENT SHALL NO LONGER BE A BINDING OFFER AND SHALL BE NULL AND VOID AND OF NO FURTHER EFFECT IF IT IS NOT FULLY SIGNED BY MEMBERS AND DELIVERED TO THE COMPANY PRIOR TO 5:00 P.M. LOCAL TIME ON WEDNESDAY, DECEMBER 12, 2012.

2.Payment. The purchase price for the Units shall be Seventeen Million and 00/100 United States Dollars ($17,000,000.00) (the “Purchase Price”). The Company shall deliver the Purchase Price to the Members pro-rata based on their respective unit holdings on or before the Closing Date. The payments shall be made by check or wire transfer at the direction of the Members.

3.Warranties and Representations. Each of Retterath, Pompano and Delray warrants and represents that: (i) They are the sole owner of the Units that are registered in their respective names and have the full and unrestricted right to permit the repurchase described in this Agreement; (ii) They shall transfer the Units to the Company free and clear of any liens, security interests, claims or encumbrances; (iii) No person or entity other than the Members has any right, title or interest whatsoever in or to the Units; (iv) The Members have received and reviewed copies of the Company's periodic reports as filed with the Securities and Exchange Commission (the “Company Information”); (v) In making the decision regarding the repurchase of the Units, the Members are relying solely upon the Company Information and the Members' legal and financial advisors and independent investigations and not upon the Company or any of its members, managers, officers, directors, employees or representatives with respect to value, tax, business, economic or other considerations involved in this transaction; (vi) The Members have the full power and authority to execute, deliver, enter into and perform their respective obligations under this Agreement, and no authorization, consent or approval of any other party is necessary to the validity of the transaction contemplated by the Agreement or to permit the consummation of the transaction contemplated herein; (vii) All corporate or other proceedings required to be taken by the Members, its members, managers or directors to authorize the Members to enter into and carry out this Agreement have been properly taken; and (viii) Members acknowledge and agree that by having the Units repurchased by the

Company, Members' no longer have any right to appoint any directors to the Company's board of directors.

4.Indemnification. The Members agree, jointly and severally, to indemnify, defend and hold harmless the Company and its members, managers, officers, directors, employees and representatives from and against any and all claims, suits, losses, liabilities, costs, damages, expenses, including reasonable attorneys' fees and costs, arising, directly or indirectly, out of or resulting from: (i) any breach or material inaccuracy of any representation or warranty by the Members contained in this Agreement; or (ii) failure by the Members to perform their respective obligations under this Agreement.

5.Conditions To the Company's Obligations. Unless waived by the Company in writing, the Company's obligation to conclude this transaction as provided herein is subject to the following conditions:

a.All of the Members' warranties and representations set forth in this Agreement shall be true and correct as of the Closing and the Members shall have satisfied each of its obligations required hereunder on or prior to the Closing;

b.The Company's Board of Directors shall have approved this Agreement and the repurchase contemplated herein in accordance with the Company's operating agreement;

c.There shall have been no material adverse change in the condition or value of the Units from the Effective Date to the Closing;

d.The Company receives approval from its primary lender to repurchase the Units and the Company secures the financing necessary to repurchase the Units, which financing is on terms reasonably acceptable to the Company; and

e.Steven Retterath and Edward Hatten shall submit a written resignation from the Company's Board of Directors, in such form and substance as is reasonably acceptable to the Company, which resignations shall be effective as of the Closing.

In the event any such conditions shall not have been satisfied on or prior to the Closing or waived in writing by the Company, the Company, may (in addition to any other remedies available hereunder, at law or in equity, all of which shall be cumulative) terminate this Agreement.

6.The Member's Obligations. In addition to any other obligations set forth herein, the Members shall, at or prior to Closing, deliver the original Certificates Numbered A1129, A1130, A1131 and A1132 to the Company duly endorsed for transfer along with any other instruments as the Company should reasonably require in order to effect the repurchase.

7.The Company's Obligations. In addition to any other obligations set forth herein, the Company shall deliver the Purchase Price defined in Section 2 hereof. Further, the Company shall provide tail coverage under the Company's director and officer insurance policy for a period of three years following the Closing covering Steven Retterath and Edward Hatten.

8.Closing. This transaction shall be closed at the offices of the Company on or before December 31, 2012 (the “Closing”).

9.Confidential Information. Members acknowledge and agree that, in connection with this transaction, Members have been provided with and/or have access to certain confidential and proprietary sensitive business information of the Company (hereafter collectively referred to as “Confidential Information”). Members hereby acknowledge and agree that all such Confidential Information shall be and remain the Company's sole and exclusive property and Members covenant and agree to, at all times during the term hereof and thereafter: (i) utilize such Confidential Information solely in connection with this transaction, and not, under any circumstances, utilize such Confidential Information, directly or indirectly, for any other purpose; (ii) treat, and cause Members' agents, employees

and representatives to treat, all such Confidential Information as confidential and proprietary sensitive business information and as trade secrets of the Company; and (iii) not, unless compelled by legal process, except with the Company's prior written consent, divulge, disclose or otherwise make any Confidential Information available to third parties.

10.Tax Provisions. Based on the Company's current estimates, there will be no taxable income allocated to the Members for the Company's 2012 taxable year. The Company will provide the Members an estimate of the Section 754 depreciation recapture, based on the information the Company's tax accountant previously provided to the Members' legal counsel, by Thursday, December 13, 2012. In the event the Company fails to deliver the Section 754 depreciation recapture information by Thursday, December 13, 2012, the Members' may cancel the Agreement in their discretion. Members understand and agree that the tax information provided by the Company is solely an estimate by the Company based on information currently available to the Company and that this information may change. Further, Members agree that this tax information cannot be finalized until the end of the Company's tax year.

11.Review by Counsel. The Members acknowledge and agree that: (i) the Members have carefully read and fully understand this Agreement; (ii) the Members have been advised that this Agreement was drafted by the law firm of Brown, Winick, Graves, Gross, Baskerville & Schoenebaum, P.L.C. as legal counsel to the Company, and not as counsel to the Members; and (iii) the Members have been advised to seek, and have had the opportunity to obtain, the advice of independent legal counsel prior to and in connection with the execution of this Agreement.

12.Further Assurances. At any time, and from time to time, after the Closing, each party will execute such additional instruments and take such action as may be reasonably requested by any other party to accomplish the objectives and consummate the transaction which is described in this Agreement.

13.Miscellaneous. This Agreement constitutes the entire understanding between the parties concerning the subject matter hereof. No other representations, promises or agreements not contained herein are of any force or effect. This Agreement shall be governed by and interpreted in accordance with Iowa law, without regard to its choice of law principles, and shall not be modified except in a writing signed by all parties. The parties agree to submit to the jurisdictions of courts in the State of Iowa and agree that venue shall be in Polk County, Iowa. This Agreement is binding upon the parties and their heirs, representatives, agents, successors and assigns. This Agreement shall not be assigned or delegated by either party, in whole or in part, without the prior written consent of the other party. If any provision of this Agreement is held to be invalid, unenforceable, or contrary to public policy, in whole or in part, the remaining provisions shall not be affected. All covenants, warranties and representations set forth in this Agreement shall survive the termination or expiration hereof. This Agreement may be signed in counterparts, all of which taken together shall constitute one executed original. Faxed or scanned and e-mailed signatures shall have the same effect as original signatures under this Agreement.

[SIGNATURE PAGE FOLLOWS]

IN WITNESS WHEREOF, the parties have duly executed this UNIT REPURCHASE AGREEMENT effective as of the day and year first above written.

GOLDEN GRAIN ENERGY, LLC	STEVEN J. RETTERATH
By: /s/ Walter Wendland	/s/ Steven J. Retterath
Walter Wendland, President
POMPANO BEACH HOLDINGS, LLC	DELRAY LAND HOLDINGS, LLC
By: /s/ Steven J. Retterath	By: /s/ Steven J. Retterath
Steven J. Retterath, Managing Member	Steven J. Retterath, Managing Member

EX-10.2

Amendment No. RI0910B

AMENDMENT

TO THE

MASTER LOAN AGREEMENT

THIS AMENDMENT is entered into as of December 28, 2012, between FARM CREDIT SERVICES OF AMERICA, FLCA ("FLCA"), FARM CREDIT SERVICES OF AMERICA, PCA ("PCA"),and GOLDEN GRAIN ENERGY, LLC, Mason City, Iowa (the "Company").

BACKGROUND

Agent and the Company are parties to a Master Loan Agreement dated July 21, 2010 (such agreement, as previously amended, is hereinafter referred to as the "MLA"). Agent and the Company now desire to amend the MLA. For that reason, and for valuable consideration (the receipt and sufficiency of which are hereby acknowledged), Agent and the Company agree as follows:

1.Section 11(A) and (B) of the MLA is hereby amended and restated to read as follows:

SECTION 10. Financial Covenants. Unless otherwise agreed to in writing, while this agreement is in effect:

(A)Working Capital. The Company will have at the end of each period for which financial statements are required to be furnished pursuant to Section 8(H) hereof an excess of current assets over current liabilities (both as determined in accordance with GAAP consistently applied) of not less than $15,000,000.00, except that in determining current assets, any amount available under the Revolving Term Loan Supplement (less the amount that would be considered a current liability under GAAP if fully advanced) hereto may be included.

(B)Net Worth. The Company will have at the end of each period for which financial statements are required to be furnished pursuant to Section 8(H) hereof an excess of total assets over total liabilities minus investments in other cooperatives and joint ventures (all as determined in accordance with GAAP consistently applied) of not less than $55,000,000.00.

2.Section 25 of the MLA is hereby amended and restated to read as follows:

SECTION 25. Settlement Line. Pursuant to that certain Revolving Term Loan Supplement No. R10910TO2B, dated of even date herewith (as amended, supplemented or modified from time to time, the "Settlement Line Supplement"), the Company and Lead Lender agree that from time to time, Lead Lender may require, or the Company may elect, in each case in such party's sole discretion, that all or a portion of the loans outstanding under the Settlement Line Supplement be repaid using the proceeds of the revolving loan made pursuant to the Company's Revolving Term Loan Supplement No. RI0910T01A, dated of even date herewith (as amended, supplemented or modified from time to time, the "Supplements"), subject in each case to the additional terms and conditions set forth in the Settlement Line Supplement and the Supplements.

Amendment RI0910B to Master Loan Agreement R10910-2-

GOLDEN GRAIN ENERGY, LLC

Mason City, Iowa

3.Except as set forth in this amendment, the MLA, including all amendments thereto, shall

continue in full force and effect as written.

IN WITNESS WHEREOF, the parties have caused this amendment to be executed by their duly authorized officers as of the date shown above.

FARM CREDIT SERVICES OF AMERICA, FLCA	GOLDEN GRAIN ENERGY, LLC
By: /s/ Katheryn Frahm	By: /s/ Walter Wendland
Title: VP Commercial Lender	Title: President and CEO
FARM CREDIT SERVICES OF AMERICA, PCA
By: /s/ Katheryn Frahm
Title: VP Commercial Lender

EX-10.3

Loan No. RI0910T01A

REVOLVING TERM LOAN SUPPLEMENT

THIS SUPPLEMENT to the Master Loan Agreement dated July 21, 2010 (the "MLA"), is entered into as of December 28, 2012 between FARM CREDIT SERVICES OF AMERICA, FLCA ("Lead Lender") and GOLDEN GRAIN ENERGY, LLC, Mason City, Iowa (the "Company"), and amends and restates the Supplement dated July 21, 2010 and numbered RI0910T01.

SECTION 1.The Revolving Term Loan Commitment. On the terms and conditions set forth in the MLA and this Supplement, Agent agrees to make loans to the Company from the date hereof, up to and including February 1, 2019, in an aggregate principal amount not to exceed, at any one time outstanding, $30,000,000.00 less the amounts scheduled to be repaid during the period set forth below in Section 5 (the "Commitment"). Within the limits of the Commitment, the Company may borrow, repay, and reborrow.

The Company may, in its sole discretion, elect to permanently reduce the amount of the Commitment by giving Agent (as that term is defined in the MLA) ten (10) days prior written notice. Said election shall be made only if the Company is not in default at the time of the election and will remain in compliance with all financial covenants after such reduction. Any such reduction shall be treated as an early, voluntary reduction of the Commitment amount and shall not delay or reduce the amount of any scheduled Commitment reduction under Section 5 hereof (which reductions shall continue in the increments and on the dates determined in accordance with Section 5), but rather shall result in an earlier expiration of the Commitment and final maturity of the loans.

SECTION 2.Purpose. The purpose of the Commitment is to provide working capital to the Compan.

SECTION 3. Term. Intentionally Omitted.

SECTION 4. Interest. The Company agrees to pay interest on the unpaid balance of the loan(s) in accordance with one or more of the following interest rate options, as selected by the Company:

(A)One-Month LIBOR Index Rate. At a rate (rounded upward to the nearest 1/100th and adjusted for reserves required on "Eurocurrency Liabilities" [as hereinafter defined] for banks subject to "FRB Regulation D" [as hereinafter defined] or required by any other federal law or regulation) per annum equal at all times to 3.15% above the rate quoted by the British Bankers Association (the "BBA") at 11:00 a.m. London time for the offering of one (1)-month U.S. dollars deposits, as published by Bloomberg or another major information vendor listed on BBA's official website on the first "U,S. Banking Day" (as hereinafter defined) in each week, with such rate to change weekly on such day. The rate shall be reset automatically, without the necessity of notice being provided to the Company or any other party, on the first "U.S. Banking Day" of each succeeding week, and each change in the rate shall be applicable to all balances subject to this option. Information about the then-current rate shall be made available upon telephonic request. For purposes hereof: (1) "U.S. Banking Day" shall mean a day on which Agent is open for business and banks are open for business in New York, New York; (2) "Eurocurrency Liabilities" shall have the meaning as set forth in "FRB Regulation D"; and (3) "FRB Regulation D" shall mean Regulation D as promulgated by the Board of Governors of the Federal Reserve System, 12 CFR Part 204, as amended.

(B)    Quoted Rate. At a fixed rate per annum to be quoted by Agent in its sole discretion in each instance. Under this option, rates may be fixed on such balances and for such periods, as may be agreeable to Agent in its sole discretion in each instance, provided that: (1) the minimum fixed period shall be 30 clays; (2) amounts may be fixed in increments of $500,000.00 or multiples thereof; and (3) the maximum number of fixes in place at any one time shall be ten.

(C)    LIBOR. At a fixed rate per annum equal to "LIBOR" (as hereinafter defined) plus 3.15%. Under this option: (1) rates may be fixed for "Interest Periods" (as hereinafter defined) of 1, 2, 3, 6, 9, or 12 months as selected by the Company; (2) amounts may be fixed in increments of $100,000.00 or multiples thereof; (3) the maximum number of fixes in place at any one time shall be ten; and (4) rates may only be fixed on a "Banking Day" (as hereinafter

Revolving Term Loan Supplement RI0910T01A                                 -2-

GOLDEN GRAIN ENERGY, LLC

Mason City, Iowa

defined) on three Banking Days' prior written notice. For purposes hereof: (a) "LIBOR" shall mean the rate (rounded upward to the nearest sixteenth and adjusted for reserves required on "Eurocurrency Liabilities" [as hereinafter defined] for banks subject to "FRB Regulation D" [as herein defined] or required by any other federal law or regulation) quoted by the British Bankers Association (the "BBA") at 11:00 a.m. London time two Banking Days before the commencement of the Interest Period for the offering of U.S. dollar deposits in the London interbank market for the Interest Period designated by the Company; as published by Bloomberg or another major information vendor listed on BBA's official website; (b) "Banking Day" shall mean a day on which Agent is open for business, dealings in U.S. dollar deposits are being carried out in the London interbank market, and banks are open for business in New York City and London, England; (c) "Interest Period" shall mean a period commencing on the date this option is to take effect and ending on the numerically corresponding day in the next calendar month or the month that is 2, 3, 6, 9, or 12 months thereafter, as the case may be; provided, however, that: (i) in the event such ending day is not a Banking Day, such period shall be extended to the next Banking Day unless such next Banking Day falls in the next calendar month, in which case it shall end on the preceding Banking Day; and (ii) if there is no numerically corresponding day in the month, then such period shall end on the last Banking Day in the relevant month; (d) "Eurocurrency Liabilities" shall have meaning as set forth in "FRB Regulation D"; and (e) "FRB Regulation D" shall mean Regulation D as promulgated by the Board of Governors of the Federal Reserve System, 12 CFR Part 204, as amended.

The Company shall select the applicable rate option at the time it requests a loan hereunder and may, subject to the limitations set forth above, elect to convert balances bearing interest at the variable rate option to one of the fixed rate options. Upon the expiration of any fixed rate period, interest shall automatically accrue at the variable rate option unless the amount fixed is repaid or fixed for an additional period in accordance with the terms hereof. Notwithstanding the foregoing, rates may not be fixed for periods expiring after the maturity date of the loans and rates may not be fixed in such a manner as to cause the Company to have to break any fixed rate balance in order to pay any installment of principal. All elections provided for herein shall be made electronically (if applicable), telephonically or in writing and must be received by Agent not later than 12:00 Noon Company's local time in order to be considered to have been received on that day; provided, however, that in the case of LIBOR rate loans, all such elections must be confirmed in writing upon Agent's request. Interest shall be calculated on the actual number of days each loan is outstanding on the basis of a year consisting of 360 days and shall be payable monthly in arrears by the 20th day of the following month or on such other day in such month as Agent shall require in a written notice to the Company; provided, however, in the event the Company elects to fix all or a portion of the indebtedness outstanding under the LIBOR interest rate option above, at Agent's option upon written notice to the Company, interest shall be payable at the maturity of the Interest Period and if the LIBOR interest rate fix is for a period longer than three months, interest on that portion of the indebtedness outstanding shall be payable quarterly in arrears on each three-month anniversary of the commencement date of such Interest Period, and at maturity.

SECTION 5.Promissory Note. The Company promises to repay on the dates set forth below, the outstanding principal, if any, that is in excess of the listed amounts:

Revolving Term Loan Supplement RI0910T01A                                 -3-

GOLDEN GRAIN ENERGY, LLC

Mason City, Iowa

Payment Date	Reducing Commitment Amount
August 1, 2013	$	27,500,000.00
February 1, 2014	$	25,000,000.00
August 1, 2014	$	22,500,000.00
February 1, 2015	$	20,000,000.00
August 1, 2015	$	17,500,000.00
February 1, 2016	$	15,000,000.00
August 1, 2016	$	12,500,000.00
February 1, 2017	$	10,000,000.00
August 1, 2017	$	7,500,000.00
February 1, 2018	$	5,000,000.00
August 1, 2018	$	2,500,000.00

followed by a final installment in an amount equal to the remaining unpaid principal balance of the loans on February 1, 2019. If any installment due date is not a day on which Agent is open for business, then such payment shall be made on the next day on which Agent is open for business. In addition to the above, the Company promises to pay interest on the unpaid principal balance hereof at the times and in accordance with the provisions set forth in Section 4 hereof. This note replaces and supersedes, but does not constitute payment of the indebtedness evidenced by, the promissory note set forth in the Supplement being amended and restated hereby.

SECTION 6. Security. The Company's obligations hereunder and, to the extent related hereto, under the MLA, including without limitation any future advances under any existing mortgage or deed of trust, shall be secured as provided in the Security Section of the MLA.

SECTION 7. Amendment Fee. In consideration of the amendment, the Company agrees to pay to CoBank on the execution hereof a fee in the amount of $22,500.00.

SECTION 8. Commitment Fee. In consideration of the Commitment, the Company agrees to pay to CoBank a commitment fee on the average daily unused portion of the Commitment at the rate of 0.60% per annum (calculated on a 360-day basis), payable monthly in arrears by the 20th day following each month. Such fee shall be payable for each month (or portion thereof) occurring during the original or any extended term of the Commitment.

IN WITNESS WHEREOF, the parties have caused this Supplement to be executed by their duly authorized officers as of the date shown above.

FARM CREDIT SERVICES OF AMERICA, FLCA	GOLDEN GRAIN ENERGY, LLC
By: /s/ Katheryn Frahm	By: /s/ Walter Wendland
Title: VP Commercial Lender	Title: President and CEO

EX-10.4

Loan No. R10910TO2B

REVOLVING TERM LOAN SUPPLEMENT

THIS SUPPLEMENT to the Master Loan Agreement dated July 21, 2010 (the "MLA"), is entered into as of December 28, 2012 between FARM CREDIT SERVICES OF AMERICA, FLCA ("Lead Lender") and GOLDEN GRAIN ENERGY, LLC, Mason City, Iowa (the "Company"), and amends and restates the Supplement dated June 23, 2011 and numbered R10910T02A.

SECTION 1. The Revolving Term Loan Commitment. On the terms and conditions set forth in the MLA and this Supplement, Agent agrees to make loans to the Company during the period set forth below in an aggregate principal amount not to exceed $5,000,000.00 at any one time outstanding (the "Commitment"). Within the limits of the Commitment, the Company may borrow, repay and reborrow.

SECTION 2. Purpose. The purpose of the Commitment is to establish a settlement line for the Company to settle daily activity including cash management services.

SECTION 3. Term. The term of the Commitment shall be from the date hereof, up to and including February 1, 2020, or such later date as Agent (as that term is defined in the MLA) may, in its sole discretion, authorize in writing.

SECTION 4. Interest. The Company agrees to pay interest on the unpaid balance of the loan(s) in accordance with one or more of the following interest rate options, as selected by the Company:

(A)One-Month LIBOR Index Rate. At a rate (rounded upward to the nearest 1/100th and adjusted for reserves required on "Eurocurrency Liabilities" [as hereinafter defined] for banks subject to "FRB Regulation D" [as hereinafter defined] or required by any other federal law or regulation) per annum equal at all times to 3.15% above the rate quoted by the British Bankers Association (the "BBA") at 11:00 a.m. London time for the offering of one (1)-month U.S. dollars deposits, as published by Bloomberg or another major information vendor listed on BBA's official website on the first "U.S. Banking Day" (as hereinafter defined) in each week, with such rate to change weekly on such day. The rate shall be reset automatically, without the necessity of notice being provided to the Company or any other party, on the first "U.S. Banking Day" of each succeeding week, and each change in the rate shall be applicable to all balances subject to this option. Information about the then-current rate shall be made available upon telephonic request. For purposes hereof: (1) "U.S. Banking Day" shall mean a day on which Agent is open for business and banks are open for business in New York, New York; (2) "Eurocurrency Liabilities" shall have the meaning as set forth in "FRB Regulation D"; and (3) "FRB Regulation D" shall mean Regulation D as promulgated by the Board of Governors of the Federal Reserve System, 12 CFR Part 204, as amended.

(B)Quoted Rate. At a fixed rate per annum to be quoted by Agent in its sole discretion in each instance. Under this option, rates may be fixed on such balances and for such periods, as may be agreeable to Agent in its sole discretion in each instance, provided that: (1) the minimum fixed period shall be 30 days; (2) amounts may be fixed in increments of $100,000.00 or multiples thereof; and (3) the maximum number of fixes in place at any one time shall be five.

(C)LIBOR. At a fixed rate per annum equal to "LIBOR" (as hereinafter defined) plus 3.15%. Under this option: (1) rates may be fixed for "Interest Periods" (as hereinafter defined) of 1, 2, 3, 6, 9, or 12 months, as selected by the Company; (2) amounts may be fixed in increments of $100,000.00 or multiples thereof; (3) the maximum number of fixes in place at any one time shall be five; and (4) rates may only be fixed on a "Banking Day" (as hereinafter defined) on three Banking Days' prior written notice. For purposes hereof: (a) "LIBOR" shall mean the rate (rounded upward to the nearest sixteenth and adjusted for reserves required on "Eurocurrency Liabilities" [as hereinafter defined] for banks subject to "FRB Regulation D" [as herein defined] or required by any other federal law or regulation) quoted by the British Bankers Association (the "BBA") at 11:00 a.m. London time two Banking Days before the commencement of the Interest Period for the offering of U.S. dollar deposits in the London interbank market for the Interest Period designated by the Company, as published by Bloomberg or another major information vendor listed on BBA's official website; (b) "Banking Day" shall mean a day on which Agent is open for business, dealings in U.S. dollar deposits are

Revolving Term Loan Supplement RI0910T02B                                 -2-

GOLDEN GRAIN ENERGY, LLC

Mason City, Iowa

being carried out in the London interbank market, and banks are open for business in New York City and London, England; (c) "Interest Period" shall mean a period commencing on the date this option is to take effect and ending on the numerically corresponding day in the next calendar month or the month that is 2, 3, 6, 9, or 12 months thereafter, as the case may be; provided, however, that: (i) in the event such ending day is not a Banking Day, such period shall be extended to the next Banking Day unless such next Banking Day falls in the next calendar month, in which case it shall end on the preceding Banking Day; and (ii) if there is no numerically corresponding day in the month, then such period shall end on the last Banking Day in the relevant month; (d) "Eurocurrency Liabilities" shall have meaning as set forth in "FRB Regulation D"; and (e) "FRB Regulation D" shall mean Regulation D as promulgated by the Board of Governors of the Federal Reserve System, 12 CFR Part 204, as amended.

The Company shall select the applicable rate option at the time it requests a loan hereunder and may, subject to the limitations set forth above, elect to convert balances bearing interest at the variable rate option to one of the fixed rate options. Upon the expiration of any fixed rate period, interest shall automatically accrue at the variable rate option unless the amount fixed is repaid or fixed for an additional period in accordance with the terms hereof. Notwithstanding the foregoing, rates may not be fixed for periods expiring after the maturity date of the loans and rates may not be fixed in such a manner as to cause the Company to have to break any fixed rate balance in order to pay any installment of principal. All elections provided for herein shall be made electronically (if applicable), telephonically or in writing and must be received by Agent not later than 12:00 Noon Company's local time in order to be considered to have been received on that day; provided, however, that in the case of LIBOR rate loans, all such elections must be confirmed in writing upon Agent's request. Interest shall be calculated on the actual number of days each loan is outstanding on the basis of a year consisting of 360 days and shall be payable quarterly in arrears by the 20th day of the following month or on such other day in such month as Agent shall require in a written notice to the Company; provided, however, in the event the Company elects to fix all or a portion of the indebtedness outstanding under the LIBOR interest rate option above, at Agent's option upon written notice to the Company, interest shall be payable at the maturity of the Interest Period and if the LIBOR interest rate fix is for a period longer than three months, interest on that portion of the indebtedness outstanding shall be payable quarterly in arrears on each three-month anniversary of the commencement date of such Interest Period, and at maturity.

SECTION 5. Promissory Note. The Company promises to repay the loans that are outstanding at the time the Commitment expires on February 1, 2020. If any installment due date is not a day on which Agent is open for business, then such payment shall be made on the next day on which Agent is open for business. In addition to the above, the Company promises to pay interest on the unpaid principal balance hereof at the times and in accordance with the provisions set forth in Section 4 hereof. This note replaces and supersedes, but does not constitute payment of the indebtedness evidenced by, the promissory note set forth in the Supplement being amended and restated hereby.

SECTION 6. Security. The Company's obligations hereunder and, to the extent related hereto, under the MLA, including without limitation any future advances under any existing mortgage or deed of trust, shall be secured as provided in the Security Section of the MLA.

SECTION 7. Commitment Fee. In consideration of the Commitment, the Company agrees to pay to Agent a commitment fee on the average daily unused portion of the Commitment at the rate of 0.60% per annum (calculated on a 360-day basis), payable monthly in arrears by the 20th day following each month. Such fee shall be payable for each month (or portion thereof) occurring during the original or any extended term of the Commitment.

SECTION 8. Settlement Line.

(A)Lead Lender, at any time and from time to time in its sole discretion, may by written notice to the Company require that all of or a portion of the loans outstanding under this Supplement (as amended, supplemented or modified from time to time) be repaid using the proceeds of Revolving Term Loan Supplement No. RI0910T01 dated July 21, 2010 (as amended, supplemented or modified from time to time). If the Company receives such written

Revolving Term Loan Supplement RI0910T02B                                 -3-

GOLDEN GRAIN ENERGY, LLC

Mason City, Iowa

notice from Agent at or before 10:00 a.m. Company's local time on a business day, the Company shall, at or before 12:00 noon Company's local time on such business day, make the required prepayment of all or a portion of the loans as requested in Agent's written notice.

(B)The Company, at any time and from time to time in its sole discretion, may, by delivery of the appropriate notices pursuant to the MLA, repay all or a portion of the loans outstanding under this Supplement using the proceeds of the Supplements referenced in (A) above.

IN WITNESS WHEREOF, the parties have caused this Supplement to be executed by their duly authorized officers as of the date shown above.

FARM CREDIT SERVICES OF AMERICA, FLCA	GOLDEN GRAIN ENERGY, LLC
By: /s/ Katheryn Frahm	By: /s/ Walter Wendland
Title: VP Commercial Lender	Title: President and CEO

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, 2013	/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, 2013	/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, 2013, 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, 2013

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, 2013, 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, 2013

XML

Risk Management Long Term Purchase Commitments (Details) (USD $)	3 Months Ended
	Jan. 31, 2013
Natural Gas [Member]
Long-term Purchase Commitment [Line Items]
Purchase Commitment, Remaining Minimum Amount Committed	7,941,000
Fixed Price [Member] | Corn [Member]
Long-term Purchase Commitment [Line Items]
Purchase Commitment, Remaining Minimum Amount Committed	10,436,000
Basis Contract [Member] | Corn [Member]
Long-term Purchase Commitment [Line Items]
Purchase Commitment, Remaining Minimum Amount Committed	31,601,000
Forward Contracts [Member] | Ethanol [Member]
Long-term Purchase Commitment [Line Items]
Product Sales, percentage	5.00%
Forward Contracts [Member] | Natural Gas [Member]
Long-term Purchase Commitment [Line Items]
Product usage, percentage	23.00%
Forward Contracts [Member] | Corn [Member]
Long-term Purchase Commitment [Line Items]
Product usage, percentage	12.00%
Affiliated Entity [Member]
Long-term Purchase Commitment [Line Items]
Purchase Commitment, Remaining Minimum Amount Committed	13,766,000

XML

Inventory (Details) (USD $)	Jan. 31, 2013	Oct. 31, 2012
Inventory [Abstract]
Raw Materials	$ 7,076,151	$ 3,049,045
Work in Process	2,453,483	2,449,296
Finished Goods	4,648,690	4,395,617
Inventory	$ 14,178,324	$ 9,893,958

XML

Inventory

3 Months Ended

Jan. 31, 2013

Inventory [Abstract]

Inventory

INVENTORY

Inventory consisted of the following as of January 31, 2013 and October 31, 2012:

	January 31, 2013		October 31, 2012
Raw Materials	$	7,076,151	$	3,049,045
Work in Process	2,453,483		2,449,296
Finished Goods	4,648,690		4,395,617
Totals	$	14,178,324	$	9,893,958

XML

Employee Benefit Plan (Details) (USD $)			3 Months Ended
	Jan. 31, 2013	Oct. 31, 2012	Jan. 31, 2013 Phantom Share Units (PSUs) [Member]	Jan. 31, 2012 Phantom Share Units (PSUs) [Member]	Oct. 31, 2011 Phantom Share Units (PSUs) [Member]	Jan. 31, 2013 Deferred Phantom Unit Compensation Plan [Member] Phantom Share Units (PSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-Based Compensation, Percentage of Net Income			1.00%
Allocated Share-based Compensation Expense			$ 15,000	$ 25,000
Deferred compensation	190,418	243,122	190,000		243,000
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized			$ 9,200
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized						2,700

XML

Related Party Transactions (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Jan. 31, 2013	Jan. 31, 2012
Director [Member]
Related Party Transaction [Line Items]
Related Party Transaction, Purchases from Related Party	$ 19,317	$ 32,840
Limited Liability Company [Member]
Related Party Transaction [Line Items]
Related Party Transaction, Selling, General and Administrative Expenses from Transactions with Related Party	$ 66	$ 52

XML

Commitments, Contingencies and Agreements (Details) (Investee [Member], USD $)	3 Months Ended
	Jan. 31, 2013	Jan. 31, 2012	Oct. 31, 2012
Investee [Member]
Related Party Transaction [Line Items]
Revenue from Related Parties	$ 85,710,000	$ 82,814,000
Related Party Transaction, Expenses from Transactions with Related Party	146,000	138,000
Related Party Transaction, Due from (to) Related Party	$ 7,364,987		$ 6,216,000

XML

Risk Management (Details) (Not Designated as Hedging Instrument [Member], Commodity Contract [Member], USD $)	3 Months Ended
	Jan. 31, 2013	Jan. 31, 2012
Derivative Instruments, Gain (Loss) [Line Items]
Derivative Instruments, Gain (Loss) Recognized in Income, Net	$ 728,000	$ 246,000
Derivative Instruments, Realized Gain (Loss) Recognized in Income, Net	989,000	(92,000)
Derivative Instruments, Unrealized Gain (Loss) Recognized in Income, Net	(261,000)	338,000
Sales [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Derivative Instruments, Gain (Loss) Recognized in Income, Net	(156,000)	1,693,000
Derivative Instruments, Realized Gain (Loss) Recognized in Income, Net	134,000	(225,000)
Derivative Instruments, Unrealized Gain (Loss) Recognized in Income, Net	(290,000)	1,918,000
Cost of Sales [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Derivative Instruments, Gain (Loss) Recognized in Income, Net	884,000	(1,447,000)
Derivative Instruments, Realized Gain (Loss) Recognized in Income, Net	855,000	133,000
Derivative Instruments, Unrealized Gain (Loss) Recognized in Income, Net	$ 29,000	$ (1,580,000)

XML

Summary of Significant Accounting Policies

3 Months Ended

Jan. 31, 2013

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, 2012, contained in the Company's annual report on Form 10-K for 2012.

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 110 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 four 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) 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, 2013 for all companies is based on the investee's results for the quarter ended December 31, 2012.

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.

Property & Equipment

The Company incurred site selection and plan development costs on the proposed site that were capitalized. Significant additions, betterments and costs to acquire land options are capitalized, while expenditures for maintenance and repairs are charged to operations when incurred. Property and equipment are stated at costs. The Company uses the straight-line method of computing depreciation over the estimated useful lives between 5 and 40 years.

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

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 of cash due from/to broker.

Net income (loss) per unit

Basic and diluted net income (loss) 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, 2013 or October 31, 2012 for environmental liabilities.

Fair Value of financial instruments

Financial instruments include cash and equivalents, receivables, accounts payable, accrued expenses, long-term debt and derivative instruments. The fair value of derivative financial instruments is based on quoted market prices. The fair value of the long-term debt is estimated based on level 3 inputs based on the current anticipated interest rate 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. Due to the variable nature of the interest rate charged against the debt the fair value of the debt approximates carrying value. The fair value of other current financial instruments is estimated to approximate carrying value due to the short-term nature of these instruments.

Risks and Uncertainties

The Company has certain risks and uncertainties that it will experience during volatile market conditions, which can have a severe impact on operations. The Company's revenues are derived from the sale and distribution of ethanol, distiller grains and corn oil to customers primarily located in the United States. Corn for the production process is supplied to the plant primarily from local agricultural producers and from purchases on the open market. For the first three months of 2013, ethanol sales accounted for approximately 74% of total revenue, distiller grains sales accounted for approximately23% of total revenue and corn oil sales accounted for approximately 3% of total revenue while corn costs averaged approximately 87% of cost of goods sold.

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

Reclassification

Certain items in the cash flow statement for the period ended January 31, 2012 have been reclassified to conform to the 2013 classification. The changes were made to agree with the classification used in the January 31, 2013 financial statements.

XML

Risk Management Derivative Instruments - Balance Sheet Location (Details) (USD $)	Jan. 31, 2013	Oct. 31, 2012
Derivatives, Fair Value [Line Items]
Derivative Instruments and Hedges, Assets	$ 590,472	$ 414,646
Fair Value, Measurements, Recurring [Member] | Commodity Contract [Member] | Liability [Member]
Derivatives, Fair Value [Line Items]
Derivative Liabilities, Current	(951,000)	(977,000)
Fair Value, Measurements, Recurring [Member] | Commodity Contract [Member] | Other Current Assets [Member]
Derivatives, Fair Value [Line Items]
Derivative Assets, Current	199,000	486,000
Restricted Cash and Cash Equivalents	1,342,000	906,000
Derivative Instruments and Hedges, Assets	$ 590,000	$ 415,000

XML

Balance Sheet (USD $)	Jan. 31, 2013	Oct. 31, 2012
Current Assets
Accounts receivable	$ 7,466,209	$ 6,733,711
Other receivables	1,061,170	860,725
Derivative instruments	590,472	414,646
Inventory	14,178,324	9,893,958
Prepaid expenses and other	1,691,325	1,312,326
Total current assets	24,987,500	19,215,366
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	13,457,627
Office equipment	320,345	320,345
Plant and process equipment	75,454,525	75,454,525
Construction in progress	2,545,895	1,482,255
Gross property and equipment	128,802,477	127,738,837
Less accumulated depreciation	58,975,472	56,617,389
Net property and equipment	69,827,005	71,121,448
Other Assets
Investments	23,074,690	23,602,518
Grant receivable, net of current portion	1,480,180	1,457,420
Debt issuance costs, net of accumulated amortization (2013 $29,565; 2012 $26,635)	69,881	50,312
Total other assets	24,624,751	25,110,250
Total Assets	119,439,256	115,447,064
Current Liabilities
Outstanding checks in excess of bank balance	596,384	360,338
Current portion long-term debt	35,149	34,454
Accounts payable	6,336,437	6,705,426
Accrued expenses	1,023,533	951,126
Deferred revenue	464,379	415,345
Total current liabilities	8,455,882	8,466,689
Long-term Liabilities
Deferred compensation	190,418	243,122
Long-term debt, net of current maturities	25,499,497	2,742,744
Deferred revenue, net of current portion	1,363,220	1,300,513
Total long-term liabilities	27,053,135	4,286,379
Commitments and Contingencies
Members' Equity (19,883,000 and 24,460,000 units issued and outstanding, respectively)	83,930,239	102,693,996
Total Liabilities and Members’ Equity	$ 119,439,256	$ 115,447,064

XML

Statement of Changes in Members' Equity Statement (USD $)	3 Months Ended
	Jan. 31, 2013
Stockholders' Equity Attributable to Parent	$ 102,693,996
Redemption of membership units	(17,000,000)
Net Income (Loss)	(1,763,757)
Stockholders' Equity Attributable to Parent	$ 83,930,239

XML

Investments (Details) (USD $)	3 Months Ended
	Jan. 31, 2013	Dec. 31, 2012	Jan. 31, 2012	Dec. 31, 2011	Sep. 30, 2012
Schedule of Equity Method Investments [Line Items]
Equity Method Investment, Current Assets		$ 246,929,000			$ 234,095,000
Equity Method Investment, Other Assets		304,214,000			313,018,000
Equity Method Investment, Current Liabilities		178,934,000			163,804,000
Equity Method Investment, Long-term Debt		63,063,000			40,396,000
Equity Method Investment, Members' Equity		309,146,000			332,913,000
Equity Method Investment, Revenue		263,734,000		299,825,000
Equity Method Investment, Gross Profit		7,409,000		48,813,000
Equity Method Investment, Net Income		2,829,000		42,709,000
Income (Loss) from Equity Method Investments	$ 96,414		$ 3,253,681

XML

Investments (Tables)

3 Months Ended

Jan. 31, 2013

Investments [Abstract]

Schedule of Equity Method Investments

Balance Sheet	12/31/2012		9/30/2012
Current Assets	$	246,929	$	234,095
Other Assets	304,214		313,018
Current Liabilities	178,934		163,804
Long-term Debt	63,063		40,396
Members’ Equity	309,146		332,913
	Three Months Ended
Income Statement	12/31/2012		12/31/2011
Revenue	$	263,734	$	299,825
Gross Profit	7,409		48,813
Net Income	2,829		42,709

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Summary of Significant Accounting Policies Concentration Risk (Details)	3 Months Ended
	Jan. 31, 2013
Sales Revenue, Product Line [Member] | Ethanol [Member]
Concentration Risk [Line Items]
Concentration Risk, Percentage	74.00%
Sales Revenue, Product Line [Member] | Distillers Grains [Member]
Concentration Risk [Line Items]
Concentration Risk, Percentage	23.00%
Sales Revenue, Product Line [Member] | Corn Oil [Member]
Concentration Risk [Line Items]
Concentration Risk, Percentage	3.00%
Cost of Goods, Total [Member] | Corn [Member]
Concentration Risk [Line Items]
Concentration Risk, Percentage	87.00%

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Statement of Changes in Members' Equity Parenthetical	3 Months Ended
	Jan. 31, 2013
Partners' Capital Account, Units, Redeemed	4,577,000

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Balance Sheet Balance Sheet Parenthetical (USD $)	Jan. 31, 2013	Oct. 31, 2012
Debt issuance costs, net of accumulated amortization	$ 29,565	$ 26,635
Members' Equity, units issued and outstanding	19,883,000	24,460,000

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Accounting Policies

3 Months Ended

Jan. 31, 2013

Summary of Significant Accounting Policies [Abstract]

Accounting Estimates

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

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

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

Investments

The Company has less than a 20% investment interest in four 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) 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, 2013 for all companies is based on the investee's results for the quarter ended December 31, 2012.

Revenue and Cost Recognition

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

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.

Property and Equipment

Property & Equipment

The Company incurred site selection and plan development costs on the proposed site that were capitalized. Significant additions, betterments and costs to acquire land options are capitalized, while expenditures for maintenance and repairs are charged to operations when incurred. Property and equipment are stated at costs. The Company uses the straight-line method of computing depreciation over the estimated useful lives between 5 and 40 years.

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

Investment in commodities contracts, derivative instruments and hedging activities

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 of cash due from/to broker.

Net income (loss) per unit

Net income (loss) per unit

Basic and diluted net income (loss) per unit are computed using the weighted-average number of Class A and B units outstanding during the period.

Environmental liabilities

Environmental liabilities

The Company's operations are subject to environmental laws and regulations adopted by various governmental authorities in the jurisdiction in which it operates. These laws require the Company to investigate and remediate the effects of the release or disposal of materials at its locations. Accordingly, the Company has adopted policies, practices and procedures in the areas of pollution control, occupational health and the production, handling, storage and use of hazardous materials to prevent material environmental or other damage, and to limit the financial liability which could result from such events. Environmental liabilities are recorded when the Company's liability is probable and the costs can be reasonably estimated. No expense or liability has been recorded as of January 31, 2013 or October 31, 2012 for environmental liabilities.

Fair Value

Fair Value of financial instruments

Financial instruments include cash and equivalents, receivables, accounts payable, accrued expenses, long-term debt and derivative instruments. The fair value of derivative financial instruments is based on quoted market prices. The fair value of the long-term debt is estimated based on level 3 inputs based on the current anticipated interest rate 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. Due to the variable nature of the interest rate charged against the debt the fair value of the debt approximates carrying value. The fair value of other current financial instruments is estimated to approximate carrying value due to the short-term nature of these instruments.

Risks and Uncertainties

Risks and Uncertainties

The Company has certain risks and uncertainties that it will experience during volatile market conditions, which can have a severe impact on operations. The Company's revenues are derived from the sale and distribution of ethanol, distiller grains and corn oil to customers primarily located in the United States. Corn for the production process is supplied to the plant primarily from local agricultural producers and from purchases on the open market. For the first three months of 2013, ethanol sales accounted for approximately 74% of total revenue, distiller grains sales accounted for approximately23% of total revenue and corn oil sales accounted for approximately 3% of total revenue while corn costs averaged approximately 87% of cost of goods sold.

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

Reclassification

Reclassification

Certain items in the cash flow statement for the period ended January 31, 2012 have been reclassified to conform to the 2013 classification. The changes were made to agree with the classification used in the January 31, 2013 financial statements.

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Document and Entity Information Document	3 Months Ended
	Jan. 31, 2013	Mar. 15, 2013
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, 2013
Document Fiscal Year Focus	2013
Document Fiscal Period Focus	Q1
Amendment Flag	false
Entity Common Stock, Shares Outstanding		19,883,000

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Inventory (Tables)

3 Months Ended

Jan. 31, 2013

Inventory [Abstract]

Schedule of Inventory

	January 31, 2013		October 31, 2012
Raw Materials	$	7,076,151	$	3,049,045
Work in Process	2,453,483		2,449,296
Finished Goods	4,648,690		4,395,617
Totals	$	14,178,324	$	9,893,958

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Statement of Operations (Unaudited) (USD $)	3 Months Ended
	Jan. 31, 2013	Jan. 31, 2012
Revenues	$ 85,408,162	$ 84,368,277
Cost of Goods Sold	86,373,717	77,421,344
Gross Profit (Loss)	(965,555)	6,946,933
Operating Expenses	771,383	666,979
Operating Income (Loss)	(1,736,938)	6,279,954
Other Income (Expense)
Other income	0	790
Interest expense	(123,233)	(54,886)
Equity in net income of investments	96,414	3,253,681
Other Income (Expense)	(26,819)	3,199,585
Net Income (Loss)	$ (1,763,757)	$ 9,479,539
Basic & diluted net income (loss) per unit	$ (0.08)	$ 0.39
Weighted average units outstanding for the calculation of basic & diluted net income (loss) per unit	22,934,333	24,460,000
Distributions Per Unit	$ 0	$ 0.65

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Employee Benefit Plan

3 Months Ended

Jan. 31, 2013

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 five year vesting schedule. During the three months ended January 31, 2013, the Company recorded compensation expense related to this plan of approximately $15,000. During the same periods of 2012, the Company recorded compensation expense related to this plan of approximately $25,000. As of January 31, 2013, and October 31, 2012, the Company had a liability of approximately $190,000 and $243,000 outstanding as deferred compensation and has approximately $9,200 to be recognized as future compensation expense. Three of the employees covered under this plan are fully vested and another employee has approximately three 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, 2013. Fair value is determined by recent trading activity of the Company's membership units. The Company had approximately 2,700 unvested equivalent phantom units outstanding under this plan as of January 31, 2013.

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Related Party Transactions

3 Months Ended

Jan. 31, 2013

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, 2013 totaled approximately $19,317,000. Purchases during the same period of 2012 totaled approximately $32,840,000.

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 $66,000 to operating expenses during the three months ended January 31, 2013 and $52,000 for the same period of 2012.

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Summary of Significant Accounting Policies (Details)	3 Months Ended
	Jan. 31, 2013 gal
Product Information [Line Items]
Equity Method Investments, Number of Entities	4
Ethanol [Member]
Product Information [Line Items]
Annual Production Capacity	110,000,000

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Commitments, Contingencies and Agreements (Tables)

3 Months Ended

Jan. 31, 2013

Commitments, Contingencies and Agreements [Abstract]

Schedule of Related Party Transactions

	Three Months Ended January 31,
	2013		2012
Sales ethanol, distiller grains & corn oil	$	85,710,000	$	82,814,000
Marketing fees	146,000		138,000
	As of
	January 31, 2013		October 31, 2012
Amount due from marketer of ethanol, distiller grains & corn oil	$	7,365,000	$	6,216,000

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Fair Value Measurements

3 Months Ended

Jan. 31, 2013

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
Derivative financial instruments
January 31, 2013
Assets	$	199,000		—	$	199,000		—
Liabilities	$	(951,000	)	—	$	(951,000	)	—
October 31, 2012
Assets	$	486,000		—	$	486,000		—
Liabilities	(977,000		)	—	(977,000		)	—

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Commitments, Contingencies and Agreements

3 Months Ended

Jan. 31, 2013

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 and automatically extends 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, 2013 are as follows:

	Three Months Ended January 31,
	2013		2012
Sales ethanol, distiller grains & corn oil	$	85,710,000	$	82,814,000
Marketing fees	146,000		138,000
	As of
	January 31, 2013		October 31, 2012
Amount due from marketer of ethanol, distiller grains & corn oil	$	7,365,000	$	6,216,000

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Risk Management

3 Months Ended

Jan. 31, 2013

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, 2013 and 2012 and the fair value of derivatives as of January 31, 2013 and October 31, 2012:

	Income Statement Classification	Realized Gain (Loss)			Change in Unrealized Gain (Loss)			Total Gain (Loss)
Derivatives not designated as hedging instruments:
Commodity Contracts for the	Revenue	$	134,000		$	(290,000	)	$	(156,000	)
three months ending January 31, 2013	Cost of Goods Sold	855,000			29,000			884,000
	Total	989,000			(261,000		)	728,000
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

	Balance Sheet Classification	January 31, 2013			October 31, 2012
Futures and option contracts through May 2013
In gain position		$	199,000		$	486,000
In loss position		$	(951,000	)	$	(977,000	)
Cash held by broker		$	1,342,000		$	906,000
	Current Asset	$	590,000		$	415,000

As of January 31, 2013, the Company had outstanding purchase commitments of which approximately $13,766,000 were with related parties:

	Commitments Through	Amount
Corn - fixed price	July 2013	$	10,436,000
Corn - basis contract	May 2013	31,601,000
Natural Gas - fixed price	August 2015	7,941,000

As of January 31, 2013, the Company has fixed price contracts in place for approximately 12% of our anticipated corn needs, approximately 23% of our natural gas needs and approximately 5% of our ethanol sales for the next 12 months.

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Investments

3 Months Ended

Jan. 31, 2013

Investments [Abstract]

Investments

INVESTMENTS

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

Balance Sheet	12/31/2012		9/30/2012
Current Assets	$	246,929	$	234,095
Other Assets	304,214		313,018
Current Liabilities	178,934		163,804
Long-term Debt	63,063		40,396
Members’ Equity	309,146		332,913
	Three Months Ended
Income Statement	12/31/2012		12/31/2011
Revenue	$	263,734	$	299,825
Gross Profit	7,409		48,813
Net Income	2,829		42,709

The Company recorded equity in net income from investments related to the entities described above of approximately $96,000 for the three months ended January 31, 2013. For the three months ended January 31, 2012 the Company recorded equity in net income from these entities of approximately $3,254,000.

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Fair Value Measurements (Details) (Commodity Contract [Member], Fair Value, Measurements, Recurring [Member], USD $) In Thousands, unless otherwise specified	Jan. 31, 2013	Oct. 31, 2012
Other Current Assets [Member] | Estimate of Fair Value, Fair Value Disclosure [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Assets (Liabilities), at Fair Value, Net	$ 199	$ 486
Other Current Assets [Member] | Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Assets (Liabilities), at Fair Value, Net	0	0
Other Current Assets [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Assets (Liabilities), at Fair Value, Net	199	486
Other Current Assets [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Assets (Liabilities), at Fair Value, Net	0	0
Liability [Member] | Estimate of Fair Value, Fair Value Disclosure [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Assets (Liabilities), at Fair Value, Net	(951)	(977)
Liability [Member] | Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Assets (Liabilities), at Fair Value, Net	0	0
Liability [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Assets (Liabilities), at Fair Value, Net	(951)	(977)
Liability [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Assets (Liabilities), at Fair Value, Net	$ 0	$ 0

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Fair Value Measurements (Tables)

3 Months Ended

Jan. 31, 2013

Fair Value Measurements [Abstract]

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

	Total			Level 1	Level 2			Level 3
Derivative financial instruments
January 31, 2013
Assets	$	199,000		—	$	199,000		—
Liabilities	$	(951,000	)	—	$	(951,000	)	—
October 31, 2012
Assets	$	486,000		—	$	486,000		—
Liabilities	(977,000		)	—	(977,000		)	—

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Bank Financing (Details) (Farm Credit Services of America [Member], USD $)	Jan. 31, 2013 Revolving Credit Facility [Member]	Jan. 31, 2013 Seasonal Revolving Credit Facility [Member]	Dec. 26, 2012 Loans Payable [Member]	Oct. 31, 2012 Loans Payable [Member]
Debt Instrument [Line Items]
Debt Instrument, Face Amount	$ 30,000,000	$ 5,000,000	$ 35,000,000	$ 22,500,000
Debt Instrument, Interest Rate, Stated Percentage	3.15%
Debt Instrument, Interest Rate at Period End	3.36%
Debt Instrument, Periodic Reduction	2,500,000
Long-term Debt, Gross	25,458,000
Debt Instrument, Unused Borrowing Capacity, Amount	$ 9,542,000

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Statement of Cash Flows (Unaudited) (USD $)	3 Months Ended
	Jan. 31, 2013	Jan. 31, 2012
Cash Flows from Operating Activities
Net Income (Loss)	$ (1,763,757)	$ 9,479,539
Adjustments to reconcile net income to net cash from operating activities:
Depreciation and amortization	2,361,014	2,252,824
Unrealized (gain) on risk management activities	(175,826)	(441,715)
Amortization of deferred revenue	(113,259)	(107,983)
Accretion of interest on grant receivable	(30,524)	(47,297)
Earnings in excess of (less than) distributions from investments	436,632	(1,433,403)
Deferred compensation expense	15,187	24,509
Change in assets and liabilities
Accounts receivable	(732,498)	10,654,182
Inventory	(4,284,366)	(3,916,858)
Prepaid expenses and other	(571,680)	(852,069)
Accounts payable	(164,178)	1,163,373
Accrued expenses	72,407	38,967
Deferred compensation payable	(67,891)	(158,743)
Net cash provided by (used in) operating activities	(5,018,739)	16,655,326
Cash Flows from Investing Activities
Capital expenditures	(1,268,451)	(1,071,174)
Net cash (used in) investing activities	(1,268,451)	(1,071,174)
Cash Flows from Financing Activities
Increase in outstanding checks in excess of bank balance	236,046	0
Proceeds from long-term debt	22,848,644	0
Payments for long-term debt	0	(42,007)
Payments for offering costs	(22,500)	0
Redemption of membership units	(17,000,000)	0
Distributions to members	0	(15,899,000)
Payments received on deferred contract	225,000	0
Net cash provided by (used in) financing activities	6,287,190	(15,941,007)
Net Increase (Decrease) in Cash and Equivalents	0	(356,855)
Cash and Equivalents – Beginning of Period	0	485,088
Cash and Equivalents – End of Period	0	128,233
Supplemental Cash Flow Information
Cash paid for interest	71,162	53,391
Supplemental Schedule of Non Cash Activities
Accounts Payable related to Construction in Process	$ (204,811)	$ 0

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Bank Financing

3 Months Ended

Jan. 31, 2013

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 original maximum borrowings of $30,000,000 and $5,000,000, respectively, and maturing on February 1, 2019 and February 1, 2020, respectively. Interest on the term loan is payable monthly at 3.15% above the one-month LIBOR (3.36% as of January 31, 2013). The borrowings are secured by substantially all the assets of the Company. On December 26, 2012, the Company executed an amended credit agreement that increased the total loan availability from $22.5 million to $35 million. The revolving term loan maximum borrowings are reduced by $2,500,000 on a semi-annual basis starting in August 2013.

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, 2013, the Company had approximately $25,458,000 outstanding and $9,542,000 total additional available to borrow under the credit agreement.

The Company has other notes payable of approximately $77,000 and $154,000 outstanding as of January 31, 2013 and October 31, 2012, respectively.

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Bank Financing Short Term Debt (Details) (Notes Payable, Other Payables [Member], USD $)	Jan. 31, 2013	Oct. 31, 2012
Notes Payable, Other Payables [Member]
Short-term Debt [Line Items]
Notes Payable, Current	$ 77,000	$ 154,000

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Risk Management (Tables)

3 Months Ended

Jan. 31, 2013

Risk Management [Abstract]

Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance

	Income Statement Classification	Realized Gain (Loss)			Change in Unrealized Gain (Loss)			Total Gain (Loss)
Derivatives not designated as hedging instruments:
Commodity Contracts for the	Revenue	$	134,000		$	(290,000	)	$	(156,000	)
three months ending January 31, 2013	Cost of Goods Sold	855,000			29,000			884,000
	Total	989,000			(261,000		)	728,000
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

Schedule of Derivative Instruments in Statement of Financial Position, Fair Value

	Balance Sheet Classification	January 31, 2013			October 31, 2012
Futures and option contracts through May 2013
In gain position		$	199,000		$	486,000
In loss position		$	(951,000	)	$	(977,000	)
Cash held by broker		$	1,342,000		$	906,000
	Current Asset	$	590,000		$	415,000

Long-term Purchase Commitment

	Commitments Through	Amount
Corn - fixed price	July 2013	$	10,436,000
Corn - basis contract	May 2013	31,601,000
Natural Gas - fixed price	August 2015	7,941,000