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, 2015
	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 13, 2015, there were 18,953,000 Class A membership units outstanding and 920,000 Class B membership units outstanding.

1

INDEX

	Page Number
PART I	3
Item 1. Financial Statements	3
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations	14
Item 3. Quantitative and Qualitative Disclosures About Market Risk	20
Item 4. Controls and Procedures	20
PART II	21
Item 1. Legal Proceedings	21
Item 1A. Risk Factors	21
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	21
Item 3. Defaults Upon Senior Securities	21
Item 4. Mine Safety Disclosures	21
Item 5. Other Information	21
Item 6. Exhibits	21
SIGNATURES	21

2

PART I    FINANCIAL INFORMATION

Item 1. Financial Statements

GOLDEN GRAIN ENERGY, LLC

Balance Sheets

ASSETS	January 31, 2015		October 31, 2014
	(Unaudited)
Current Assets
Cash and equivalents	$	23,757,035	$	47,444,566
Marketable securities	3,195,501		8,262,637
Accounts receivable	1,770,690		7,586,542
Other receivables	4,038,604		752,305
Derivative instruments	522,411		385,815
Inventory	7,803,235		4,860,052
Prepaid expenses and other	1,878,178		987,640
Total current assets	42,965,654		70,279,557
Property and Equipment
Land and land improvements	12,516,479		11,666,479
Building and grounds	25,761,752		25,761,752
Grain handling equipment	13,519,305		13,519,305
Office equipment	197,308		197,308
Plant and process equipment	81,581,537		81,520,875
Construction in progress	3,668,952		2,252,148
	137,245,333		134,917,867
Less accumulated depreciation	77,343,328		75,273,527
Net property and equipment	59,902,005		59,644,340
Other Assets
Investments	26,662,218		36,788,435
Other assets	598,116		845,483
Total other assets	27,260,334		37,633,918
Total Assets	$	130,127,993	$	167,557,815

Notes to Financial Statements are an integral part of these Statements.

3

GOLDEN GRAIN ENERGY, LLC

Balance Sheets

LIABILITIES AND MEMBERS' EQUITY	January 31, 2015		October 31, 2014
	(Unaudited)
Current Liabilities
Current portion long-term debt	$	3,419	$	13,114
Accounts payable	5,520,997		5,575,194
Accrued expenses	1,378,271		1,908,324
Other current liabilities	249,101		295,340
Total current liabilities	7,151,788		7,791,972
Long-term Liabilities
Deferred compensation	240,546		235,421
Deferred revenue, net of current portion	279,265		306,861
Total long-term liabilities	519,811		542,282
Commitments and Contingencies
Members' Equity (19,873,000 units issued and outstanding)	122,456,394		159,223,561
Total Liabilities and Members’ Equity	$	130,127,993	$	167,557,815

Notes to Financial Statements are an integral part of these Statements.

4

GOLDEN GRAIN ENERGY, LLC

Statements of Operations (Unaudited)

	Three Months Ended			Three Months Ended
	January 31, 2015			January 31, 2014
Revenues	$	61,048,123		$	72,987,525
Cost of Goods Sold	48,693,853			58,593,832
Gross Profit	12,354,270			14,393,693
Operating Expenses	1,055,988			784,742
Operating Income	11,298,282			13,608,951
Other Income (Expense)
Other income	82,864			88,889
Interest (expense)	(35,289		)	(63,285		)
Equity in net income of investments	3,556,776			4,840,478
Total Other Income	3,604,351			4,866,082
Net Income	$	14,902,633		$	18,475,033
Basic & diluted net income per unit	$	0.75		$	0.93
Weighted average units outstanding for the calculation of basic & diluted net income per unit	19,873,000			19,883,000
Distributions Per Unit	$	2.60		$	0.50

Notes to Financial Statements are an integral part of these Statements.

5

GOLDEN GRAIN ENERGY, LLC

Statements of Cash Flows (Unaudited)

	Three Months Ended			Three Months Ended
	January 31, 2015			January 31, 2014
Cash Flows from Operating Activities
Net income	$	14,902,633		$	18,475,033
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	2,072,672			2,408,998
Unrealized (gain) loss on risk management & investing activities	(219,460		)	65,336
Amortization of deferred revenue	(73,835		)	(113,436		)
Change in accretion of interest on grant receivable	16,209			(8,410		)
Distributions in excess of earnings from investments	6,905,817			276,842
Deferred compensation expense	131,139			34,103
Change in assets and liabilities
Accounts receivable	5,815,852			(1,834,001		)
Inventory	(2,943,183		)	(1,684,946		)
Prepaid expenses and other	(981,262		)	(152,480		)
Accounts payable	(54,197		)	(443,350		)
Accrued expenses	(530,053		)	(55,812		)
Deferred compensation payable	(126,014		)	—
Net cash provided by operating activities	24,916,318			16,967,877
Cash Flows from Investing Activities
Capital expenditures	(2,327,466		)	(407,522		)
Proceeds from sale of marketable securities	5,150,000			—
Purchase of investments	—			(110,000		)
Net cash provided by (used in) investing activities	2,822,534			(517,522		)
Cash Flows from Financing Activities
(Decrease) in outstanding checks in excess of bank balance	—			(563,531		)
Payments for long-term debt	(9,695		)	(1,579,826		)
Distributions to members	(51,669,800		)	(9,941,500		)
Payments received on grant receivable	253,112			236,843
Net cash (used in) financing activities	(51,426,383		)	(11,848,014		)
Net (Decrease) Increase in Cash and Equivalents	(23,687,531		)	4,602,341
Cash and Equivalents – Beginning of Period	47,444,566			—
Cash and Equivalents – End of Period	$	23,757,035		$	4,602,341
Supplemental Cash Flow Information
Cash paid for interest	$	42,502		$	76,250

Notes to Financial Statements are an integral part of these Statements.

6

GOLDEN GRAIN ENERGY, LLC

Notes to Unaudited Financial Statements

January 31, 2015

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 notes 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, 2014, contained in the Company's annual report on Form 10-K for 2014.

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. The Company also holds several investments in various companies that focus on ethanol production, marketing and/or logistics.

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 exceed federally insured limits during the period. The Company has not experienced any losses in connection with these balances. Also included in cash and equivalents are highly liquid investments that are readily convertible into known amounts of cash which are subject to an insignificant risk of change in value due to interest rate, quoted price or penalty on withdrawal and have a maturity of three months or less.

Marketable Securities

Marketable securities consist of certificates of deposits with original maturities of greater than three months and mutual funds. Certificates of deposit are considered held to maturity securities, which are measured at cost. Mutual funds are considered trading securities which are measured at fair value using prices obtained from pricing services. Any unrealized or realized gains and losses on the trading securities are recorded as part of other income (expense).

At January 31, 2015, marketable securities consisted of mutual funds invested in intermediate-term municipal and government bonds with an approximate cost and fair market value of $3,136,000 and $3,196,000, respectively. At October 31, 2014, marketable securities consisted of mutual funds invested in intermediate-term municipal and government bonds with an approximate cost and fair market value of $5,211,000 and $5,263,000, respectively, and certificates of deposit all with maturities of less than one year and an approximate value of $3,000,000. For the three months ended January 31, 2015 the Company recorded a net realized and unrealized gain of approximately $23,000 and $37,000 from these investments as part of other income (expense). There were no marketable securities as of January 31, 2014.

Receivables

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

Investments

The Company has less than a 20% investment interest in four 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

7

GOLDEN GRAIN ENERGY, LLC

Notes to Unaudited Financial Statements

January 31, 2015

treated as a reduction of the investment account. The investments are evaluated for indications of impairment on a regular basis. A loss would be recognized when the fair value is determined to be less than the carrying value.

The 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 period ended January 31, 2015 for all companies is based on the investee's results for the three months ended December 31, 2014.

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

Property and equipment are stated at historical cost. Significant additions and betterments are capitalized, while expenditures for maintenance and repairs are charged to operations when incurred. The Company uses the straight-line method of computing depreciation over the estimated useful lives between 3 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. The Company occasionally also enters into derivative contracts to hedge its 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

8

GOLDEN GRAIN ENERGY, LLC

Notes to Unaudited Financial Statements

January 31, 2015

financial statements. The fair values of contracts are presented on the accompanying balance sheet as derivative instruments net of cash due from/to broker.

Deferred Compensation

The Company has a deferred 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 has a vesting schedule of the lesser of five years from the grant date or seven years of continuous employment with the Company. 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, 2015. Fair value is determined by recent trading activity of the Company's membership units.

Net income per unit

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

Fair Value

Financial instruments include cash and equivalents, certificates of deposit, marketable securities, receivables, accounts payable, accrued expenses, long-term debt and derivative instruments. The fair value of marketable securities and 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. 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 and distiller grains 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 three months ended January 31, 2015, ethanol sales accounted for approximately 83% of total revenue, distiller grains sales accounted for approximately 14% of total revenue and corn oil sales accounted for approximately 3% of total revenue while corn costs averaged approximately 81% of cost of goods sold.

The Company's operating and financial performance is largely driven by the prices at which ethanol is sold and the net expense of corn. The price of ethanol is influenced by factors such as supply and demand, weather, government policies and programs, and unleaded gasoline and the petroleum markets 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.

2.    INVENTORY

Inventory consisted of the following as of January 31, 2015 and October 31, 2014:

	January 31, 2015		October 31, 2014
Raw Materials	$	4,341,194	$	3,150,725
Work in Process	1,304,756		1,193,582
Finished Goods	2,157,285		515,745
Totals	$	7,803,235	$	4,860,052

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 with original maximum borrowings of $30,000,000 and $5,000,000 which mature 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 (3.33% as of January 31,

9

GOLDEN GRAIN ENERGY, LLC

Notes to Unaudited Financial Statements

January 31, 2015

2015). The borrowings are secured by substantially all the assets of the Company. The revolving term loan maximum borrowings are reduced by $2,500,000 on a semi-annual basis 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, 2015, the Company had no outstanding borrowings and $27.5 million additional available to borrow under the credit agreement. As of October 31, 2014, the Company had no borrowings outstanding.

The Company has other notes payable of approximately $3,000 and $13,000 outstanding as of January 31, 2015 and October 31, 2014, 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, 2015 totaled approximately $18,984,000. Purchases during the three months ended January 31, 2014 totaled approximately $16,977,000. As of January 31, 2015 the amount owed to related parties was approximately $333,000.

Previously, the Company had a management services agreement with Homeland Energy Solutions, LLC to share the compensation costs associated with each management position covered under the agreement partially in an effort to reduce the costs of administrative overhead. This agreement was terminated on May 16, 2014. The Company recorded a reduction in expenses related to these shared costs during the three months ended January 31, 2014 of approximately $61,000.

5.    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 marketing fees are presented net in revenues.

Approximate sales and marketing fees related to the agreements in place are as follows:

	Three Months Ended January 31,
	2015		2014
Sales ethanol, distiller grains & corn oil	$	61,081,000	$	71,437,000
Marketing fees	89,000		105,000
As of	January 31, 2015		October 31, 2014
Amount due from marketer	$	1,771,000	$	7,587,000

6.    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

10

GOLDEN GRAIN ENERGY, LLC

Notes to Unaudited Financial Statements

January 31, 2015

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 and unrealized gains (losses) and changes in fair value recognized in earnings on commodity contracts for the periods ended January 31, 2015 and 2014 and the fair value of derivatives as of January 31, 2015 and October 31, 2014:

	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	$	141,000		$	(85,000	)	$	56,000
three months ended January 31, 2015	Cost of Goods Sold	186,000			200,000			386,000
	Total	$	327,000		$	115,000		$	442,000
Commodity Contracts for the	Revenue	$	(2,299,000	)	$	(1,317,000	)	$	(3,616,000	)
three months ended January 31, 2014	Cost of Goods Sold	(2,038,000		)	2,592,000			554,000
	Total	$	(4,337,000	)	$	1,275,000		$	(3,062,000	)

	Balance Sheet Classification	January 31, 2015			October 31, 2014
Futures and option contracts through December 2014
In gain position		$	392,000		$	648,000
In loss position		(355,000		)	(726,000		)
Cash held by (due to) broker		485,000			464,000
	Current Asset	$	522,000		$	386,000

As of January 31, 2015, the Company had the following approximate outstanding purchase and sale commitments, of which approximately $9,714,000 of the purchase commitments were with related parties.

	Commitments Through	Amount
Sale commitments
Distiller Grains - fixed price	June 2015	$	6,528,000
Purchase commitments
Corn - fixed price	October 2015	$	6,534,000
Corn - basis contract	July 2015	19,231,000
Natural gas - fixed price	March 2015	1,307,000

As of January 31, 2015, the Company has fixed price futures and forward contracts in place for approximately 10% of our anticipated corn needs, 10% of our natural gas needs and 0% of our ethanol sales for the next 12 months with no open positions beyond that period.

11

GOLDEN GRAIN ENERGY, LLC

Notes to Unaudited Financial Statements

January 31, 2015

7.    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.

Marketable Securities: The Company's short-term investments are classified within Level 1 and comprised of short-term liquid investments (e.g. mutual funds), classified as trading securities, which are carried at fair value based on the quoted market prices.

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
Marketable securities
Assets, January 31, 2015	$	3,196,000		$	3,196,000		$	—		$	—
Assets, October 31, 2014	5,263,000			5,263,000			—			—
Derivative financial instruments
January 31, 2015
Assets	$	392,000		$	392,000		$	—		$	—
Liabilities	(355,000		)	(355,000		)	—			—
October 31, 2014
Assets	$	648,000		$	447,000		$	201,000		$	—
Liabilities	(726,000		)	(610,000		)	(116,000		)	—

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GOLDEN GRAIN ENERGY, LLC

Notes to Unaudited Financial Statements

January 31, 2015

8. 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	12/31/2014		9/30/2014
Current Assets	$	324,480	$	320,903
Other Assets	263,370		267,563
Current Liabilities	218,323		140,262
Long-term Debt	31,620		17,007
Members’ Equity	337,906		431,197
	Three Months Ended
Income Statement	12/31/2014		12/31/2013
Revenue	$	221,543	$	263,570
Gross Profit	49,229		59,235
Net Income	44,036		53,388

The Company recorded equity in net income (loss) of approximately (in 000's):

	Three Months Ended January 31,
Equity in Net Income	2015			2014
Absolute Energy	$	1,244		$	1,395
Guardian Energy	1,367			2,297
Homeland Energy Solutions	990			999
Other	(44		)	149
Total	$	3,557		$	4,840

The following table shows the condensed financial information of Guardian Energy, which represents greater than 10% of the net income for the three months ended January 31, 2014:

Guardian Energy Condensed Financial Information
Balance Sheet	12/31/2014		9/30/2014
Current Assets	$	19,823	$	68,726
Other Assets	54,412		56,576
Current Liabilities	23,789		22,193
Long-term Debt	31,200		16,788
Members’ Equity	19,246		86,321
	Three Months Ended
Income Statement	12/31/2014		12/31/2013
Revenue	65,001		83,602
Gross Profit	16,354		25,558
Net Income	12,924		21,605

13

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. 

• The impact lower gasoline prices have on the market price of ethanol and our ability to profitably operate the ethanol plant;

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

• The effect a reduction or elimination of the Federal Renewable Fuels Standard would have on the market for our ethanol;

• Our ability to transport our finished goods in order to continue to operate our ethanol plant at capacity;

• 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 ability of the ethanol industry to generate additional demand through higher level blends of ethanol, including E15 and E85;

• 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;

• Changes and advances in ethanol production technology;

• 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 November 17, 2014, our board of directors declared a distribution of $2.60 per membership unit for members of record as of November 17, 2014. The total amount of the distribution was $51,669,800 which was paid in December 2014.

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Results of Operations

Comparison of the Three Months Ended January 31, 2015 and 2014

The following table shows the results of our operations and the percentage of revenues, cost of goods sold, operating expenses and other items to total revenues in our statement of operations for the three months ended January 31, 2015 and 2014:

	2015			2014
Income Statement Data	Amount		%	Amount		%
Revenue	$	61,048,123	100.0	$	72,987,525	100.0
Cost of Goods Sold	48,693,853		79.8	58,593,832		80.3
Gross Profit	12,354,270		20.2	14,393,693		19.7
Operating Expenses	1,055,988		1.7	784,742		1.1
Operating Income	11,298,282		18.5	13,608,951		18.6
Other Income	3,604,351		5.9	4,866,082		6.7
Net Income	$	14,902,633	24.4	$	18,475,033	25.3

Revenues. Our total revenue was lower for our first quarter of 2015 compared to the same period of 2014 due to lower average prices that we received for our products. However, we continue to experience favorable operating margins due to a decrease in our cost of goods sold for our first quarter of 2015 compared to the same period of 2014. For our first quarter of 2015, ethanol sales accounted for approximately 83% of our total revenue, distiller grains sales accounted for approximately 14% of our total revenue, and corn oil sales accounted for approximately 3% of our total revenue. For our first quarter of 2014, ethanol sales accounted for approximately 79% of our total revenue, distiller grains sales accounted for approximately 18% of our total revenue, and corn oil sales accounted for approximately 3% of our total revenue.

The average price per gallon we received for our ethanol was approximately 19% lower for our first quarter of 2015 compared to the same period of 2014. Management attributes this decrease in the average price we received for our ethanol with lower oil and corn prices which typically impacts ethanol prices. During our first quarter of 2014, there were significant rail shipping delays which management believes supported higher ethanol prices during that time.

While we experienced decreasing ethanol prices toward the end of our first quarter of 2015 which limited our profitability, following the end of our first quarter of 2015 our operating margins improved. Management anticipates that we will maintain positive operating margins for the remaining quarters of our 2015 fiscal year based on current projections provided the ethanol use requirement in the Federal Renewable Fuels Standard (RFS) is not reduced by the United States Environmental Protection Agency (EPA). If there is a reduction in the RFS, it could negatively impact our ability to profitably operate the ethanol plant. Further, we experienced significantly lower gasoline prices at the end of our first quarter of 2015 due to lower oil prices. Ethanol typically trades at a discount compared to the price of gasoline which makes ethanol a favorable product for fuel blenders to use in order to decrease gasoline prices. When gasoline prices decreased, it resulted in lower ethanol prices. Following the end of our first quarter of 2015, gasoline prices increased which positively impacted market ethanol prices and resulted in improved operating margins. Management anticipates continued volatility in the ethanol market as a result of uncertainty regarding the ethanol use requirement in the RFS and changing gasoline prices, both of which impact ethanol demand and ultimately prices.

According to the United States Energy Information Administration (EIA), the United States exported a record volume of ethanol during 2014. Management believes that this increase in ethanol exports was due in part to lower ethanol prices domestically along with increased worldwide demand for ethanol which both spurred ethanol exports. Management anticipates that ethanol exports may continue at the current levels due to anticipated continued low ethanol prices. Management believes that strong ethanol exports may be necessary to maintain positive operating margins for United States ethanol producers, especially if the EPA elects to reduce the ethanol use requirement in the RFS.

We sold approximately 1% more gallons of ethanol during our first quarter of 2015 compared to the same period of 2014. As a result of rail logistics issues we experienced during our first quarter of 2014, we were required to slow operations during that time and our ethanol inventory increased which decreased our ethanol sales. However, our total ethanol production was comparable during the our first quarter of 2015 and our first quarter of 2014 despite the decreased sales in 2014. We did not experience the same logistics issues during our first quarter of 2015 which resulted in increased ethanol sales during the 2015 period. We anticipate production levels to be slightly higher in the remaining quarters of our 2015 fiscal year as compared to 2014 as long as rail shipping and logistic delays are minimal during 2015.

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During our first quarter of 2015, we experienced combined realized and unrealized gains on our ethanol derivatives of approximately $56,000 which increased our revenue. By comparison, we experienced combined realized and unrealized losses on our ethanol derivative instruments of $3,616,000 during our first quarter of 2014 which decreased our revenue.

The average price per ton we received for our dried distillers grains was approximately 29% less for our first quarter of 2015 compared to the same period of 2014. In addition, the average price per ton we received for our modified/wet distillers grains was approximately 55% less for our first quarter of 2015 compared to the same period of 2014. Management attributes these price decreases with lower market corn prices and higher corn supplies after the 2014 harvest. China started accepting distiller grains exports from the United States at the end of 2014 after nearly six months when China did not accept distiller grains from the United States. China objected to distiller grains exports from the United States based on a genetic corn trait which was not approved in China. This corn trait was present in distiller grains produced in the United States. While China has restarted imports of distiller grains, many are concerned that China could once again refuse distiller grains from the United States which results in uncertainty regarding future distiller grains demand. This uncertainty may continue to negatively impact distiller grains prices. However, with China reentering the distiller grains market, distiller grains prices have trended higher and have positively impacted our operating margins. Management anticipates that distiller grains will continue to trade at a relative value to corn for the foreseeable future.

Our distiller grains production was approximately 9% less during our first quarter of 2015 compared to the same period of 2014 due primarily to an increase in the amount of modified/wet distillers grains we produced. In addition, we experienced an improvement in our conversion rate of corn into ethanol which resulted in lower distiller grains production. As we extract more ethanol from a bushel of corn, it results in less total tons of distiller grains produced. Management anticipates slightly higher ethanol production due to improved rail logistics which may result in higher distiller grains production during the remaining quarters of 2015 compared to 2014.

We sold approximately 6% less pounds of corn oil during our first quarter of 2015 compared to the same period of 2014. This reduction in corn oil sales resulted from decreased corn usage due to our improved corn to ethanol conversion rates during the 2015 period. Management anticipates that corn oil production will be at a comparable rate per bushel during the remaining quarters of our 2015 fiscal year to our first quarter of 2015. The average price per pound we received for our corn oil was approximately 15% less for our first quarter of 2015 compared to the same period of 2014. Management attributes this decline in corn oil prices with increased corn oil supply in the market which has not been met by corresponding increases in corn oil demand. In addition, corn oil substitutes for biodiesel production such as soybean oil have been priced lower recently which has negatively impacted corn oil prices. Management anticipates continued competition from these competing products which may continue to result in lower corn oil prices. Further, management anticipates continued volatility in corn oil prices due to uncertainty regarding corn oil demand. The biodiesel industry is a major source of corn oil demand. However, recent legislative uncertainty related to the biodiesel production tax credit has negatively impacted biodiesel production which has a corresponding impact on corn oil prices.

Cost of Goods Sold. Our cost of goods sold was significantly lower for our first quarter of 2015 compared to the same period of 2014 due primarily to lower corn costs and natural gas costs. Our average cost per bushel of corn was approximately 16% lower during our first quarter of 2015 compared to the same period of 2014. This decrease in our cost per bushel of corn was primarily related to decreased market corn prices. Management believes corn prices have somewhat stabilized and will continue to trade in a window similar to what was experienced during the first part of 2015. In addition, China is currently accepting corn and distiller grain imports that were previously banned which may provide support for corn prices in the United States. Management anticipates continued lower average corn prices during our 2015 fiscal year as compared to recent years.

We consumed approximately 1% less corn during our first quarter of 2015 compared to the same period of 2014 due to improved corn conversion efficiency. We were able to improve our corn conversion rate by approximately 2% during our first quarter of 2015 compared to the same period of 2014 which allowed us to produce more of our products per bushel of corn. Management anticipates consistent corn consumption during the rest of our 2015 fiscal year provided we continue to experience profitable operating margins and do not experience rail transportation delays which require us to reduce production.

Our natural gas costs decreased by approximately 17% during our first quarter of 2015 compared to the same period of 2014. The average price we paid per MMBtu of natural gas was approximately 10% lower during our first quarter of 2015 compared to the same period of 2014. Management attributes this decrease in natural gas prices with lower commodity and energy prices during the 2015 period. Further, we experienced a spike in natural gas prices during our first quarter of 2014 which resulted in significantly higher natural gas prices during that time. Management anticipates that natural gas prices will continue to trade in a range which has been typical of previous years. Our natural gas consumption during our first quarter of 2015 was approximately

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7% lower compared to the same period of 2014. Management attributes this decrease in our natural gas consumption with capital improvements we made to our thermal oxidier which made it more energy efficient.

We experienced approximately $386,000 of combined realized and unrealized gains for our first quarter of 2015 related to our corn and natural gas derivative instruments which decreased our cost of goods sold. By comparison, we experienced approximately $554,000 of combined realized and unrealized gains for the same period of 2014 related to our corn and natural gas derivative instruments which also decreased our cost of goods sold. We recognize the gains or losses that result from the changes in the value of our derivative instruments from corn and natural gas in cost of goods sold as the changes occur.  As corn and natural gas prices fluctuate, the value of our derivative instruments is impacted, which affects our financial performance.

Operating Expenses. Our operating expenses were significantly higher during our first quarter of 2015 compared to the same period of 2014 primary due to bonuses and an increase in our property taxes. Management anticipates that our operating expenses will remain steady during the remaining quarters of our 2015 fiscal year compared to our 2014 fiscal year.

Other Income (Expense). Other income was lower for our first quarter of 2015 compared to the same period of 2014 due to a decrease in our portion of the net income generated by our investments. Our investments are in other companies involved in the ethanol industry which experienced slightly less favorable operating margins during our first quarter of 2015. We had less interest expense during our first quarter of 2015 compared to the same period of 2014 due to less outstanding borrowing on our revolving loan.

Changes in Financial Condition for the Three Months Ended January 31, 2015

Current Assets. We had less cash and equivalents as well as marketable securities at January 31, 2015 compared to October 31, 2014. This decrease in our cash position and marketable securities is due to a $51,669,800 distribution paid to members in December 2014. The decrease in our accounts receivable at January 31, 2015 compared to October 31, 2014 was due to reduced ethanol prices at the end of our first quarter of 2015 compared to the end of our 2014 fiscal year in addition to the timing of a unit train shipment. The value of our other receivables was higher at January 31, 2015 compared to October 31, 2014 due to a distribution receivable from one of our ethanol investments.The value of our inventory was greater at January 31, 2015 compared to October 31, 2014 primarily due to increased finished goods inventory due to timing of a unit train shipment.

Property and Equipment. The net value of our property and equipment was slightly higher at January 31, 2015 compared to October 31, 2014 due to an increase in capital projects offset by depreciation. We had approximately $3.7 million in construction in progress at January 31, 2015 related to various capital projects we were conducting during our 2014 and 2015 fiscal years, including our railroad expansion project, syrup loadout and chiller projects.

Other Assets. Our other assets were lower at January 31, 2015 compared to October 31, 2014 due to a decrease in the value of our various investments caused by distributions received in excess of earnings recorded for the three months ended January 31, 2015.

Current Liabilities. Our accounts payable at January 31, 2015 were comparable to October 31, 2014. Our accrued expenses were lower at January 31, 2015 compared to October 31, 2014 due to payment of employee benefits as it relates to bonuses for our 2014 fiscal year. These payments are typically made during our first quarter each year.

Long-term Liabilities. Our long-term debt was similar at January 31, 2015 compared to October 31, 2014.

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 and beyond. As of January 31, 2015, we had $27.5 million available pursuant to our revolving term loan and approximately $27 million in cash and equivalents and marketable securities.

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

We commenced a program of investing our excess cash in short-term liquid investments which allows us to access the cash when we need it and preserve our capital while limiting our loss exposure. Only a portion of our cash balances are federally

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insured when they are deposited with our bank. As a result, our plan is intended to decrease the risk we face if we were concentrating our cash balances with one financial institution.

The following table shows our cash flows for the three months ended January 31, 2015 and 2014:

	Three Months Ended January 31,
	2015			2014
Net cash provided by operating activities	$	24,916,318		$	16,967,877
Net cash provided by (used in) investing activities	2,822,534			(517,522		)
Net cash (used in) financing activities	(51,426,383		)	(11,848,014		)

Cash Flow From Operations

Our cash flows from operations for the three months ended January 31, 2015 were higher compared to the same period of 2014 due primarily to distributions received in excess of earnings from our investments. Due to timing of payments, we generated more cash from our accounts receivables for the three months ended January 31, 2015 compared to the same period of 2014.

Cash Flow From Investing Activities

We used less cash for investing activities during our three months ended January 31, 2015 compared to the same period of 2014 primarily due to proceeds from our marketable securities offset by the amount of cash that we used for capital projects. During our three months ended January 31, 2014, we used cash for capital expenditures related to our syrup loadout system, railroad project and other upgrades throughout the facility.

Cash Flow From Financing Activities.

During our three months ended January 31, 2015, we primarily used cash for financing activities related to a distribution we paid to members. During our three months ended January 31, 2014, we used more cash for the payment of long-term debt.

Short-Term and Long-Term Debt Sources

We have a credit facility with Farm Credit with an initial availability of $35 million, which currently has availability of $27.5 million. In exchange for this 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. We increased the amount available to us pursuant to our Farm Credit loans during our 2012 fiscal year in order to complete a repurchase of membership units in exchange for $17 million that closed in December 2012.

Variable Line of Credit

We have a long-term revolving line of credit. 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, 2015, we had $0 outstanding on this loan with an accrued interest rate of 3.33% per year. As of January 31, 2015, we had approximately $27.5 million 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.

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Covenants

Our credit agreements with Farm Credit are subject to numerous covenants requiring us to maintain various financial ratios. As of January 31, 2015, 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.

Critical Accounting Policies

Management uses estimates and assumptions in preparing our financial statements in accordance with U.S. 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 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

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are treated as a reduction of the investment account. The investments are evaluated for indications of impairment on a regular basis. A loss would be recognized when the fair value is determined to be less than the carrying value.

Off-Balance Sheet Arrangements.

We currently have no off-balance sheet arrangements.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

We are exposed to the impact of market fluctuations associated with commodity prices as discussed below. We have no exposure to interest rate changes as we did not have any amounts outstanding on our variable interest rate loans as of January 31, 2015. 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.

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, 2015, we had price protection in place for approximately 10% of our anticipated corn needs, 10% of our natural gas needs and 0% 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, 2015, 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, 2015. The results of this analysis, which may differ from actual results, are as follows:

	Estimated Volume Requirements for the next 12 months (net of forward and futures contracts)	Unit of Measure	Hypothetical Adverse Change in Price	Approximate Adverse Change to Income
Natural Gas	2,810,000	MMBTU	10%	$	1,180,000
Ethanol	115,000,000	Gallons	10%	19,999,000
Corn	35,789,000	Bushels	10%	13,539,000

Liability Risk

We participate, along with other plants in the industry, in a group captive insurance company (Captive). The Captive insures losses related to workman's compensation, commercial property and general liability. The Captive reinsures catastrophic losses for all participants, including the Company, in excess of predetermined amounts. Our 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. These 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 over 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 Executive Vice President and Chief Financial Officer, as appropriate, to allow for timely decisions regarding required disclosures.

Our management, including our Executive Vice President (the principal executive officer), Curtis Strong, 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 defined in Rule 13a-15(e) and Rule 15d-15(e) under the Securities Exchange Act of 1934, as amended) as of January 31, 2015.  Based on this review and evaluation, these officers have concluded that our disclosure controls and procedures are effective to ensure that information required to be disclosed in the reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods required by the forms and rules of the Securities and Exchange Commission; and to ensure that the information required to be disclosed by an issuer in the reports that it files or submits under the Exchange Act is accumulated and communicated to our management including our principal executive and principal financial officers, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure.

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For the fiscal quarter ended January 31, 2015, 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

There have been no material changes to the risk factors previously disclosed in our annual report on Form 10-K for the fiscal year ended October 31, 2014.

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

None.

Item 3. Defaults Upon Senior Securities

None.

Item 4.Mine Safety Disclosures.

None.

Item 5.Other Information

None.

Item 6. Exhibits.

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

Exhibit No.	Exhibit
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, 2015, formatted in XBRL (eXtensible Business Reporting Language): (i) Balance Sheets as of January 31, 2015 and October 31, 2014, (ii) Statements of Operations for the three months ended January 31, 2015 and 2014, (iii) Statements of Cash Flows for the three months ended January 31, 2015 and 2014, and (iv) the Notes to Condensed Financial Statements.**

*    Filed herewith.

**    Furnished herewith.

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) 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.

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		GOLDEN GRAIN ENERGY, LLC
Date:	March 13, 2015	/s/ Curtis Strong
		Curtis Strong
		Executive Vice-President
		(Principal Executive Officer)
Date:	March 13, 2015	/s/ Christine Marchand
		Christine Marchand
		Chief Financial Officer
		(Principal Financial and Accounting Officer)

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EX-31.1

CERTIFICATIONS

I, Curtis Strong, 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 13, 2015	/s/ Curtis Strong
		Curtis Strong, Executive Vice President (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 13, 2015	/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 fiscal quarter ended January 31, 2015, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Curtis Strong, Executive Vice President 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/ Curtis Strong
	Curtis Strong
	Executive Vice President
Dated:	March 13, 2015

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 fiscal quarter ended January 31, 2015, 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 13, 2015

XML

Fair Value Measurements (Details) (USD $)	Jan. 31, 2015	Oct. 31, 2014
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable Securities	$ 0
Commodity Contract [Member] | Other Current Assets [Member] | Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Asset, Current	392,000	648,000
Commodity Contract [Member] | Other Current Assets [Member] | Fair Value, Measurements, Recurring [Member] | Estimate of Fair Value Measurement [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable Securities	3,196,000	5,263,000
Derivative Asset, Current	392,000	648,000
Commodity Contract [Member] | Other Current Assets [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable Securities	3,196,000	5,263,000
Derivative Asset, Current	392,000	447,000
Commodity Contract [Member] | Other Current Assets [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable Securities	0	0
Derivative Asset, Current	0	201,000
Commodity Contract [Member] | Other Current Assets [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable Securities	0	0
Derivative Asset, Current	0	0
Commodity Contract [Member] | Liability [Member] | Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Liability, Current	(355,000)	(726,000)
Commodity Contract [Member] | Liability [Member] | Fair Value, Measurements, Recurring [Member] | Estimate of Fair Value Measurement [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Liability, Current	(355,000)	(726,000)
Commodity Contract [Member] | Liability [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Liability, Current	(355,000)	(610,000)
Commodity Contract [Member] | Liability [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Liability, Current	0	(116,000)
Commodity Contract [Member] | Liability [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Liability, Current	$ 0	$ 0

XML

Inventory (Details) (USD $)	Jan. 31, 2015	Oct. 31, 2014
Inventory [Abstract]
Raw Materials	$ 4,341,194	$ 3,150,725
Work in Process	1,304,756	1,193,582
Finished Goods	2,157,285	515,745
Inventory	$ 7,803,235	$ 4,860,052

XML

Related Party Transactions

3 Months Ended

Jan. 31, 2015

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, 2015 totaled approximately $18,984,000. Purchases during the three months ended January 31, 2014 totaled approximately $16,977,000. As of January 31, 2015 the amount owed to related parties was approximately $333,000.

Previously, the Company had a management services agreement with Homeland Energy Solutions, LLC to share the compensation costs associated with each management position covered under the agreement partially in an effort to reduce the costs of administrative overhead. This agreement was terminated on May 16, 2014. The Company recorded a reduction in expenses related to these shared costs during the three months ended January 31, 2014 of approximately $61,000.

XML

Commitments, Contingencies and Agreements (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Jan. 31, 2015	Jan. 31, 2014
Related Party Transaction [Line Items]
Related Party Transaction, Due from (to) Related Party	$ 333
Investee [Member]
Related Party Transaction [Line Items]
Revenue from Related Parties	61,081	71,437
Related Party Transaction, Expenses from Transactions with Related Party	89	105
Related Party Transaction, Due from (to) Related Party	$ 1,771	$ 7,587

XML

Related Party Transactions (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Jan. 31, 2015	Jan. 31, 2014
Related Party Transaction [Line Items]
Related Party Transaction, Due from (to) Related Party	$ 333
Director [Member]
Related Party Transaction [Line Items]
Related Party Transaction, Purchases from Related Party	18,984	16,977
Limited Liability Company [Member]
Related Party Transaction [Line Items]
Related Party Transaction, Selling, General and Administrative Expenses from Transactions with Related Party		$ 61

XML

Risk Management Derivative Instruments - Income Statement (Details) (Not Designated as Hedging Instrument [Member], Commodity Contract [Member], USD $)	3 Months Ended
	Jan. 31, 2015	Jan. 31, 2014
Derivative Instruments, Gain (Loss) [Line Items]
Derivative Instruments, Realized Gain (Loss) Recognized in Income, Net	$ 327,000	$ (4,337,000)
Derivative Instruments, Unrealized Gain (Loss) Recognized in Income, Net	115,000	1,275,000
Derivative Instruments, Gain (Loss) Recognized in Income, Net	442,000	(3,062,000)
Sales [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Derivative Instruments, Realized Gain (Loss) Recognized in Income, Net	141,000	(2,299,000)
Derivative Instruments, Unrealized Gain (Loss) Recognized in Income, Net	(85,000)	(1,317,000)
Derivative Instruments, Gain (Loss) Recognized in Income, Net	56,000	(3,616,000)
Cost of Sales [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Derivative Instruments, Realized Gain (Loss) Recognized in Income, Net	186,000	(2,038,000)
Derivative Instruments, Unrealized Gain (Loss) Recognized in Income, Net	200,000	2,592,000
Derivative Instruments, Gain (Loss) Recognized in Income, Net	$ 386,000	$ 554,000

XML

Risk Management Derivative Instruments - Balance Sheet Location (Details) (USD $)	Jan. 31, 2015	Oct. 31, 2014
Derivatives, Fair Value [Line Items]
Derivative Instruments and Hedges, Assets	$ 522,411	$ 385,815
Fair Value, Measurements, Recurring [Member] | Commodity Contract [Member] | Liability [Member]
Derivatives, Fair Value [Line Items]
Derivative Liabilities, Current	(355,000)	(726,000)
Fair Value, Measurements, Recurring [Member] | Commodity Contract [Member] | Other Current Assets [Member]
Derivatives, Fair Value [Line Items]
Derivative Assets, Current	392,000	648,000
Restricted Cash and Cash Equivalents	485,000	464,000
Derivative Instruments and Hedges, Assets	$ 522,000	$ 386,000

XML

Bank Financing

3 Months Ended

Jan. 31, 2015

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 with original maximum borrowings of $30,000,000 and $5,000,000 which mature 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 (3.33% as of January 31, 2015). The borrowings are secured by substantially all the assets of the Company. The revolving term loan maximum borrowings are reduced by $2,500,000 on a semi-annual basis 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, 2015, the Company had no outstanding borrowings and $27.5 million additional available to borrow under the credit agreement. As of October 31, 2014, the Company had no borrowings outstanding.

The Company has other notes payable of approximately $3,000 and $13,000 outstanding as of January 31, 2015 and October 31, 2014, respectively.

XML

Risk Management Long Term Purchase Commitments (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Jan. 31, 2015
Fixed Price [Member] | Distillers Grains [Member]
Long-term Purchase Commitment [Line Items]
Supply Commitment, Remaining Minimum Amount Committed	6,528
Fixed Price [Member] | Corn [Member]
Long-term Purchase Commitment [Line Items]
Purchase Commitment, Remaining Minimum Amount Committed	6,534
Basis Contract [Member] | Corn [Member]
Long-term Purchase Commitment [Line Items]
Purchase Commitment, Remaining Minimum Amount Committed	19,231
Forward Contracts [Member] | Natural Gas [Member]
Long-term Purchase Commitment [Line Items]
Purchase Commitment, Remaining Minimum Amount Committed	1,307
Forward Contracts [Member] | Natural Gas [Member]
Long-term Purchase Commitment [Line Items]
Product usage, percentage	10.00%
Forward Contracts [Member] | Corn [Member]
Long-term Purchase Commitment [Line Items]
Product usage, percentage	10.00%
Forward Contracts [Member] | Ethanol [Member]
Long-term Purchase Commitment [Line Items]
Product usage, percentage	0.00%
Affiliated Entity [Member]
Long-term Purchase Commitment [Line Items]
Purchase Obligation	9,714

XML

Balance Sheet (USD $)	Jan. 31, 2015	Oct. 31, 2014
Current Assets
Cash and equivalents	$ 23,757,035	$ 47,444,566
Marketable securities	3,195,501	8,262,637
Accounts receivable	1,770,690	7,586,542
Other receivables	4,038,604	752,305
Derivative instruments	522,411	385,815
Inventory	7,803,235	4,860,052
Prepaid expenses and other	1,878,178	987,640
Total current assets	42,965,654	70,279,557
Property and Equipment
Land and land improvements	12,516,479	11,666,479
Building and grounds	25,761,752	25,761,752
Grain handling equipment	13,519,305	13,519,305
Office equipment	197,308	197,308
Plant and process equipment	81,581,537	81,520,875
Construction in progress	3,668,952	2,252,148
Gross property and equipment	137,245,333	134,917,867
Less accumulated depreciation	77,343,328	75,273,527
Net property and equipment	59,902,005	59,644,340
Other Assets
Investments	26,662,218	36,788,435
Other assets	598,116	845,483
Total other assets	27,260,334	37,633,918
Total Assets	130,127,993	167,557,815
Current Liabilities
Current portion long-term debt	3,419	13,114
Accounts payable	5,520,997	5,575,194
Accrued expenses	1,378,271	1,908,324
Other current liabilities	249,101	295,340
Total current liabilities	7,151,788	7,791,972
Long-term Liabilities
Deferred compensation	240,546	235,421
Deferred revenue, net of current portion	279,265	306,861
Total long-term liabilities	519,811	542,282
Commitments and Contingencies
Members' Equity (19,873,000 units issued and outstanding)	122,456,394	159,223,561
Total Liabilities and Members’ Equity	$ 130,127,993	$ 167,557,815

XML

Summary of Significant Accounting Policies

3 Months Ended

Jan. 31, 2015

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 notes 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, 2014, contained in the Company's annual report on Form 10-K for 2014.

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. The Company also holds several investments in various companies that focus on ethanol production, marketing and/or logistics.

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 exceed federally insured limits during the period. The Company has not experienced any losses in connection with these balances. Also included in cash and equivalents are highly liquid investments that are readily convertible into known amounts of cash which are subject to an insignificant risk of change in value due to interest rate, quoted price or penalty on withdrawal and have a maturity of three months or less.

Marketable Securities

Marketable securities consist of certificates of deposits with original maturities of greater than three months and mutual funds. Certificates of deposit are considered held to maturity securities, which are measured at cost. Mutual funds are considered trading securities which are measured at fair value using prices obtained from pricing services. Any unrealized or realized gains and losses on the trading securities are recorded as part of other income (expense).

At January 31, 2015, marketable securities consisted of mutual funds invested in intermediate-term municipal and government bonds with an approximate cost and fair market value of $3,136,000 and $3,196,000, respectively. At October 31, 2014, marketable securities consisted of mutual funds invested in intermediate-term municipal and government bonds with an approximate cost and fair market value of $5,211,000 and $5,263,000, respectively, and certificates of deposit all with maturities of less than one year and an approximate value of $3,000,000. For the three months ended January 31, 2015 the Company recorded a net realized and unrealized gain of approximately $23,000 and $37,000 from these investments as part of other income (expense). There were no marketable securities as of January 31, 2014.

Receivables

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

Investments

The Company has less than a 20% investment interest in four 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 investments are evaluated for indications of impairment on a regular basis. A loss would be recognized when the fair value is determined to be less than the carrying value.

The 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 period ended January 31, 2015 for all companies is based on the investee's results for the three months ended December 31, 2014.

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

Property and equipment are stated at historical cost. Significant additions and betterments are capitalized, while expenditures for maintenance and repairs are charged to operations when incurred. The Company uses the straight-line method of computing depreciation over the estimated useful lives between 3 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. The Company occasionally also enters into derivative contracts to hedge its 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.

Deferred Compensation

The Company has a deferred 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 has a vesting schedule of the lesser of five years from the grant date or seven years of continuous employment with the Company. 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, 2015. Fair value is determined by recent trading activity of the Company's membership units.

Net income per unit

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

Fair Value

Financial instruments include cash and equivalents, certificates of deposit, marketable securities, receivables, accounts payable, accrued expenses, long-term debt and derivative instruments. The fair value of marketable securities and 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. 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 and distiller grains 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 three months ended January 31, 2015, ethanol sales accounted for approximately 83% of total revenue, distiller grains sales accounted for approximately 14% of total revenue and corn oil sales accounted for approximately 3% of total revenue while corn costs averaged approximately 81% of cost of goods sold.

The Company's operating and financial performance is largely driven by the prices at which ethanol is sold and the net expense of corn. The price of ethanol is influenced by factors such as supply and demand, weather, government policies and programs, and unleaded gasoline and the petroleum markets 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.

XML

Property and Equipment (Details) (Property, Plant and Equipment [Member])	3 Months Ended
	Jan. 31, 2015
Minimum [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Estimated Useful Lives	3
Maximum [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Estimated Useful Lives	40

XML

Concentration Risk (Details)	3 Months Ended
	Jan. 31, 2015
Sales Revenue, Product Line [Member] | Ethanol [Member]
Concentration Risk [Line Items]
Concentration Risk, Percentage	83.00%
Sales Revenue, Product Line [Member] | Distillers Grains [Member]
Concentration Risk [Line Items]
Concentration Risk, Percentage	14.00%
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	81.00%

XML

Inventory

3 Months Ended

Jan. 31, 2015

Inventory [Abstract]

Inventory

INVENTORY

Inventory consisted of the following as of January 31, 2015 and October 31, 2014:

	January 31, 2015		October 31, 2014
Raw Materials	$	4,341,194	$	3,150,725
Work in Process	1,304,756		1,193,582
Finished Goods	2,157,285		515,745
Totals	$	7,803,235	$	4,860,052

XML

Balance Sheet Parenthetical	Jan. 31, 2015	Oct. 31, 2014
Members' Equity, units issued and outstanding	19,873,000	19,873,000

XML

Risk Management (Tables)

3 Months Ended

Jan. 31, 2015

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	$	141,000		$	(85,000	)	$	56,000
three months ended January 31, 2015	Cost of Goods Sold	186,000			200,000			386,000
	Total	$	327,000		$	115,000		$	442,000
Commodity Contracts for the	Revenue	$	(2,299,000	)	$	(1,317,000	)	$	(3,616,000	)
three months ended January 31, 2014	Cost of Goods Sold	(2,038,000		)	2,592,000			554,000
	Total	$	(4,337,000	)	$	1,275,000		$	(3,062,000	)

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

	Balance Sheet Classification	January 31, 2015			October 31, 2014
Futures and option contracts through December 2014
In gain position		$	392,000		$	648,000
In loss position		(355,000		)	(726,000		)
Cash held by (due to) broker		485,000			464,000
	Current Asset	$	522,000		$	386,000

Long-term Purchase Commitment

	Commitments Through	Amount
Sale commitments
Distiller Grains - fixed price	June 2015	$	6,528,000
Purchase commitments
Corn - fixed price	October 2015	$	6,534,000
Corn - basis contract	July 2015	19,231,000
Natural gas - fixed price	March 2015	1,307,000

XML

Document and Entity Information Document	3 Months Ended
	Jan. 31, 2015	Mar. 13, 2015
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, 2015
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	Q1
Amendment Flag	false
Entity Common Stock, Shares Outstanding		19,873,000

XML

Fair Value Measurements (Tables)

3 Months Ended

Jan. 31, 2015

Fair Value Measurements [Abstract]

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

	Total			Level 1			Level 2			Level 3
Marketable securities
Assets, January 31, 2015	$	3,196,000		$	3,196,000		$	—		$	—
Assets, October 31, 2014	5,263,000			5,263,000			—			—
Derivative financial instruments
January 31, 2015
Assets	$	392,000		$	392,000		$	—		$	—
Liabilities	(355,000		)	(355,000		)	—			—
October 31, 2014
Assets	$	648,000		$	447,000		$	201,000		$	—
Liabilities	(726,000		)	(610,000		)	(116,000		)	—

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Statement of Operations (USD $)	3 Months Ended
	Jan. 31, 2015	Jan. 31, 2014
Revenues	$ 61,048,123	$ 72,987,525
Cost of Goods Sold	48,693,853	58,593,832
Gross Profit	12,354,270	14,393,693
Operating Expenses	1,055,988	784,742
Operating Income	11,298,282	13,608,951
Other Income (Expense)
Other income	82,864	88,889
Interest (expense)	(35,289)	(63,285)
Equity in net income of investments	3,556,776	4,840,478
Total Other Income	3,604,351	4,866,082
Net Income	$ 14,902,633	$ 18,475,033
Basic & diluted net income per unit	$ 0.75	$ 0.93
Weighted average units outstanding for the calculation of basic & diluted net income per unit	19,873,000	19,883,000
Distribution Per Unit	$ 2.60	$ 0.50

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Fair Value Measurements

3 Months Ended

Jan. 31, 2015

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.

Marketable Securities: The Company's short-term investments are classified within Level 1 and comprised of short-term liquid investments (e.g. mutual funds), classified as trading securities, which are carried at fair value based on the quoted market prices.

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
Marketable securities
Assets, January 31, 2015	$	3,196,000		$	3,196,000		$	—		$	—
Assets, October 31, 2014	5,263,000			5,263,000			—			—
Derivative financial instruments
January 31, 2015
Assets	$	392,000		$	392,000		$	—		$	—
Liabilities	(355,000		)	(355,000		)	—			—
October 31, 2014
Assets	$	648,000		$	447,000		$	201,000		$	—
Liabilities	(726,000		)	(610,000		)	(116,000		)	—

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Risk Management

3 Months Ended

Jan. 31, 2015

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 and unrealized gains (losses) and changes in fair value recognized in earnings on commodity contracts for the periods ended January 31, 2015 and 2014 and the fair value of derivatives as of January 31, 2015 and October 31, 2014:

	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	$	141,000		$	(85,000	)	$	56,000
three months ended January 31, 2015	Cost of Goods Sold	186,000			200,000			386,000
	Total	$	327,000		$	115,000		$	442,000
Commodity Contracts for the	Revenue	$	(2,299,000	)	$	(1,317,000	)	$	(3,616,000	)
three months ended January 31, 2014	Cost of Goods Sold	(2,038,000		)	2,592,000			554,000
	Total	$	(4,337,000	)	$	1,275,000		$	(3,062,000	)

	Balance Sheet Classification	January 31, 2015			October 31, 2014
Futures and option contracts through December 2014
In gain position		$	392,000		$	648,000
In loss position		(355,000		)	(726,000		)
Cash held by (due to) broker		485,000			464,000
	Current Asset	$	522,000		$	386,000

As of January 31, 2015, the Company had the following approximate outstanding purchase and sale commitments, of which approximately $9,714,000 of the purchase commitments were with related parties.

	Commitments Through	Amount
Sale commitments
Distiller Grains - fixed price	June 2015	$	6,528,000
Purchase commitments
Corn - fixed price	October 2015	$	6,534,000
Corn - basis contract	July 2015	19,231,000
Natural gas - fixed price	March 2015	1,307,000

As of January 31, 2015, the Company has fixed price futures and forward contracts in place for approximately 10% of our anticipated corn needs, 10% of our natural gas needs and 0% of our ethanol sales for the next 12 months with no open positions beyond that period.

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Summary of Significant Accounting Policies Deferred Compensation (Details)	3 Months Ended
	Jan. 31, 2015
Summary of Significant Accounting Policies [Abstract]
Share-Based Compensation, Percentage of Net Income	1.00%

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Investments (Tables)

3 Months Ended

Jan. 31, 2015

Investments [Abstract]

Schedule of Equity Method Investments

Balance Sheet	12/31/2014		9/30/2014
Current Assets	$	324,480	$	320,903
Other Assets	263,370		267,563
Current Liabilities	218,323		140,262
Long-term Debt	31,620		17,007
Members’ Equity	337,906		431,197
	Three Months Ended
Income Statement	12/31/2014		12/31/2013
Revenue	$	221,543	$	263,570
Gross Profit	49,229		59,235
Net Income	44,036		53,388

The Company recorded equity in net income (loss) of approximately (in 000's):

	Three Months Ended January 31,
Equity in Net Income	2015			2014
Absolute Energy	$	1,244		$	1,395
Guardian Energy	1,367			2,297
Homeland Energy Solutions	990			999
Other	(44		)	149
Total	$	3,557		$	4,840

The following table shows the condensed financial information of Guardian Energy, which represents greater than 10% of the net income for the three months ended January 31, 2014:

Guardian Energy Condensed Financial Information
Balance Sheet	12/31/2014		9/30/2014
Current Assets	$	19,823	$	68,726
Other Assets	54,412		56,576
Current Liabilities	23,789		22,193
Long-term Debt	31,200		16,788
Members’ Equity	19,246		86,321
	Three Months Ended
Income Statement	12/31/2014		12/31/2013
Revenue	65,001		83,602
Gross Profit	16,354		25,558
Net Income	12,924		21,605

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Inventory (Tables)

3 Months Ended

Jan. 31, 2015

Inventory [Abstract]

Schedule of Inventory

	January 31, 2015		October 31, 2014
Raw Materials	$	4,341,194	$	3,150,725
Work in Process	1,304,756		1,193,582
Finished Goods	2,157,285		515,745
Totals	$	7,803,235	$	4,860,052

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Investments

3 Months Ended

Jan. 31, 2015

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	12/31/2014		9/30/2014
Current Assets	$	324,480	$	320,903
Other Assets	263,370		267,563
Current Liabilities	218,323		140,262
Long-term Debt	31,620		17,007
Members’ Equity	337,906		431,197
	Three Months Ended
Income Statement	12/31/2014		12/31/2013
Revenue	$	221,543	$	263,570
Gross Profit	49,229		59,235
Net Income	44,036		53,388

The Company recorded equity in net income (loss) of approximately (in 000's):

	Three Months Ended January 31,
Equity in Net Income	2015			2014
Absolute Energy	$	1,244		$	1,395
Guardian Energy	1,367			2,297
Homeland Energy Solutions	990			999
Other	(44		)	149
Total	$	3,557		$	4,840

The following table shows the condensed financial information of Guardian Energy, which represents greater than 10% of the net income for the three months ended January 31, 2014:

Guardian Energy Condensed Financial Information
Balance Sheet	12/31/2014		9/30/2014
Current Assets	$	19,823	$	68,726
Other Assets	54,412		56,576
Current Liabilities	23,789		22,193
Long-term Debt	31,200		16,788
Members’ Equity	19,246		86,321
	Three Months Ended
Income Statement	12/31/2014		12/31/2013
Revenue	65,001		83,602
Gross Profit	16,354		25,558
Net Income	12,924		21,605

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Accounting Policies

3 Months Ended

Jan. 31, 2015

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 exceed federally insured limits during the period. The Company has not experienced any losses in connection with these balances. Also included in cash and equivalents are highly liquid investments that are readily convertible into known amounts of cash which are subject to an insignificant risk of change in value due to interest rate, quoted price or penalty on withdrawal and have a maturity of three months or less.

Marketable Securities

Marketable Securities

Marketable securities consist of certificates of deposits with original maturities of greater than three months and mutual funds. Certificates of deposit are considered held to maturity securities, which are measured at cost. Mutual funds are considered trading securities which are measured at fair value using prices obtained from pricing services. Any unrealized or realized gains and losses on the trading securities are recorded as part of other income (expense).

At January 31, 2015, marketable securities consisted of mutual funds invested in intermediate-term municipal and government bonds with an approximate cost and fair market value of $3,136,000 and $3,196,000, respectively. At October 31, 2014, marketable securities consisted of mutual funds invested in intermediate-term municipal and government bonds with an approximate cost and fair market value of $5,211,000 and $5,263,000, respectively, and certificates of deposit all with maturities of less than one year and an approximate value of $3,000,000. For the three months ended January 31, 2015 the Company recorded a net realized and unrealized gain of approximately $23,000 and $37,000 from these investments as part of other income (expense). There were no marketable securities as of January 31, 2014.

Receivables

Receivables

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

Investments

Investments

The Company has less than a 20% investment interest in four 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 investments are evaluated for indications of impairment on a regular basis. A loss would be recognized when the fair value is determined to be less than the carrying value.

The 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 period ended January 31, 2015 for all companies is based on the investee's results for the three months ended December 31, 2014.

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

Property and equipment are stated at historical cost. Significant additions and betterments are capitalized, while expenditures for maintenance and repairs are charged to operations when incurred. The Company uses the straight-line method of computing depreciation over the estimated useful lives between 3 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. The Company occasionally also enters into derivative contracts to hedge its 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.

Deferred Compensation

Deferred Compensation

The Company has a deferred 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 has a vesting schedule of the lesser of five years from the grant date or seven years of continuous employment with the Company. 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, 2015. Fair value is determined by recent trading activity of the Company's membership units.

Net income (loss) per unit

Net income per unit

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

Fair Value

Fair Value

Financial instruments include cash and equivalents, certificates of deposit, marketable securities, receivables, accounts payable, accrued expenses, long-term debt and derivative instruments. The fair value of marketable securities and 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. 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 and distiller grains 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 three months ended January 31, 2015, ethanol sales accounted for approximately 83% of total revenue, distiller grains sales accounted for approximately 14% of total revenue and corn oil sales accounted for approximately 3% of total revenue while corn costs averaged approximately 81% of cost of goods sold.

The Company's operating and financial performance is largely driven by the prices at which ethanol is sold and the net expense of corn. The price of ethanol is influenced by factors such as supply and demand, weather, government policies and programs, and unleaded gasoline and the petroleum markets 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.

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Commitments, Contingencies and Agreements (Tables)

3 Months Ended

Jan. 31, 2015

Commitments, Contingencies and Agreements [Abstract]

Schedule of Related Party Transactions

	Three Months Ended January 31,
	2015		2014
Sales ethanol, distiller grains & corn oil	$	61,081,000	$	71,437,000
Marketing fees	89,000		105,000
As of	January 31, 2015		October 31, 2014
Amount due from marketer	$	1,771,000	$	7,587,000

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Investments (Details) (USD $)	3 Months Ended
	Jan. 31, 2015	Jan. 31, 2014	Dec. 31, 2014	Oct. 31, 2014
Schedule of Equity Method Investments [Line Items]
Equity Method Investment, percentage of net income	10.00%
Equity Method Investment, Net Income	$ 3,557,000	$ 4,840,000
Equity Method Investee [Member]
Schedule of Equity Method Investments [Line Items]
Equity Method Investment, Current Assets			324,480,000	320,903,000
Equity Method Investment, Other Assets			263,370,000	267,563,000
Equity Method Investment, Current Liabilities			218,323,000	140,262,000
Equity Method Investment, Long-term Debt			31,620,000	17,007,000
Equity Method Investment, Members' Equity			337,906,000	431,197,000
Equity Method Investment, Revenue	221,543,000	263,570,000
Equity Method Investment, Gross Profit	49,229,000	59,235,000
Equity Method Investment, Summarized Financial Information, Net Income (Loss)	44,036,000	53,388,000
Absolute Energy [Member]
Schedule of Equity Method Investments [Line Items]
Equity Method Investment, Net Income	1,244,000	1,395,000
Guardian Energy [Member]
Schedule of Equity Method Investments [Line Items]
Equity Method Investment, Current Assets			19,823,000	68,726,000
Equity Method Investment, Other Assets			54,412,000	56,576,000
Equity Method Investment, Current Liabilities			23,789,000	22,193,000
Equity Method Investment, Long-term Debt			31,200,000	16,788,000
Equity Method Investment, Members' Equity			19,246,000	86,321,000
Equity Method Investment, Revenue	65,001,000	83,602,000
Equity Method Investment, Gross Profit	16,354,000	25,558,000
Equity Method Investment, Net Income	1,367,000	2,297,000
Equity Method Investment, Summarized Financial Information, Net Income (Loss)	12,924,000	21,605,000
Homeland Energy Solutions [Member]
Schedule of Equity Method Investments [Line Items]
Equity Method Investment, Net Income	990,000	999,000
Other Investee [Member]
Schedule of Equity Method Investments [Line Items]
Equity Method Investment, Net Income	$ (44,000)	$ 149,000

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Summary of Significant Accounting Policies Marketable Securities (Details) (USD $)	3 Months Ended
	Jan. 31, 2015	Oct. 31, 2014
Schedule of Held-to-maturity Securities [Line Items]
Marketable Securities, Realized Gain (Loss)	$ 23,000
Marketable Securities, Unrealized Gain (Loss)	37,000
Marketable Securities	0
Original Cost [Member] | Mutual Fund [Member]
Schedule of Held-to-maturity Securities [Line Items]
Held-to-maturity Securities, Current	3,136,000	5,211,000
Estimate of Fair Value Measurement [Member] | Mutual Fund [Member]
Schedule of Held-to-maturity Securities [Line Items]
Held-to-maturity Securities, Current	3,196,000	5,263,000
Estimate of Fair Value Measurement [Member] | Certificates of Deposit [Member]
Schedule of Held-to-maturity Securities [Line Items]
Held-to-maturity Securities, Current	$ 3,000,000

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Bank Financing Long Term Debt (Details) (Farm Credit Services of America [Member], USD $)	Jan. 31, 2015	Oct. 31, 2014
Debt Instrument [Line Items]
Debt Instrument, Face Amount	$ 30,000,000
Debt Instrument, Interest Rate, Stated Percentage	3.15%
Debt Instrument, Interest Rate at Period End	3.33%
Debt Instrument, Periodic Reduction	2,500,000
Long-term Debt	0	0
Debt Instrument, Unused Borrowing Capacity, Amount	27,500,000
Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Debt Instrument, Face Amount	$ 5,000,000

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Statement of Cash Flows (USD $)	3 Months Ended
	Jan. 31, 2015	Jan. 31, 2014
Cash Flows from Operating Activities
Net Income	$ 14,902,633	$ 18,475,033
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	2,072,672	2,408,998
Unrealized (gain) loss on risk management & investing activities	(219,460)	65,336
Amortization of deferred revenue	(73,835)	(113,436)
Change in accretion of interest on grant receivable	16,209	(8,410)
Distributions in excess of earnings from investments	6,905,817	276,842
Deferred compensation expense	131,139	34,103
Change in assets and liabilities
Accounts receivable	5,815,852	(1,834,001)
Inventory	(2,943,183)	(1,684,946)
Prepaid expenses and other	(981,262)	(152,480)
Accounts payable	(54,197)	(443,350)
Accrued expenses	(530,053)	(55,812)
Deferred compensation payable	(126,014)	0
Net cash provided by operating activities	24,916,318	16,967,877
Cash Flows from Investing Activities
Capital expenditures	(2,327,466)	(407,522)
Proceeds from sale of marketable securities	5,150,000	0
Purchase of investments	0	(110,000)
Net cash provided by (used in) investing activities	2,822,534	(517,522)
Cash Flows from Financing Activities
(Decrease) in outstanding checks in excess of bank balance	0	(563,531)
Payments for long-term debt	(9,695)	(1,579,826)
Distributions to members	(51,669,800)	(9,941,500)
Payments received on grant receivable	253,112	236,843
Net cash (used in) financing activities	(51,426,383)	(11,848,014)
Net (Decrease) Increase in Cash and Equivalents	(23,687,531)	4,602,341
Cash and Equivalents – Beginning of Period	47,444,566	0
Cash and Equivalents – End of Period	23,757,035	4,602,341
Supplemental Cash Flow Information
Cash paid for interest	$ 42,502	$ 76,250

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Commitments, Contingencies and Agreements

3 Months Ended

Jan. 31, 2015

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 marketing fees are presented net in revenues.

Approximate sales and marketing fees related to the agreements in place are as follows:

	Three Months Ended January 31,
	2015		2014
Sales ethanol, distiller grains & corn oil	$	61,081,000	$	71,437,000
Marketing fees	89,000		105,000
As of	January 31, 2015		October 31, 2014
Amount due from marketer	$	1,771,000	$	7,587,000

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Bank Financing Short Term Debt (Details) (Notes Payable, Other Payables [Member], USD $)	Jan. 31, 2015	Oct. 31, 2014
Notes Payable, Other Payables [Member]
Short-term Debt [Line Items]
Notes Payable, Current	$ 3,000	$ 13,000

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Summary of Significant Accounting Policies Production (Details)	3 Months Ended
	Jan. 31, 2015 gal
Product Information [Line Items]
Equity Method Investments, Number of Entities	4
Ethanol [Member]
Product Information [Line Items]
Annual Production Capacity	110,000,000