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, 2016
	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 14, 2016, 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	15
Item 3. Quantitative and Qualitative Disclosures About Market Risk	21
Item 4. Controls and Procedures	22
PART II	22
Item 1. Legal Proceedings	22
Item 1A. Risk Factors	22
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	22
Item 3. Defaults Upon Senior Securities	22
Item 4. Mine Safety Disclosures	22
Item 5. Other Information	22
Item 6. Exhibits	23
SIGNATURES	23

2

PART I    FINANCIAL INFORMATION

Item 1. Financial Statements

GOLDEN GRAIN ENERGY, LLC

Balance Sheets

ASSETS	January 31, 2016		October 31, 2015
	(Unaudited)
Current Assets
Cash and equivalents	$	7,628,631	$	21,084,029
Marketable securities	13,341,028		13,241,062
Accounts receivable	3,847,227		2,717,592
Other receivables	2,348,094		669,930
Derivative instruments	452,083		879,332
Inventory	8,059,499		6,866,505
Prepaid expenses and other	1,827,928		1,578,458
Total current assets	37,504,490		47,036,908
Property and Equipment
Land and land improvements	12,516,479		12,516,479
Building and grounds	25,761,752		25,761,752
Grain handling equipment	15,329,548		15,178,214
Office equipment	220,527		217,424
Plant and process equipment	85,512,612		84,802,333
Construction in progress	8,710,196		5,887,270
	148,051,114		144,363,472
Less accumulated depreciation	84,288,127		82,232,924
Net property and equipment	63,762,987		62,130,548
Other Assets
Investments	24,526,518		27,334,443
Other assets	1,585,380		1,653,421
Total other assets	26,111,898		28,987,864
Total Assets	$	127,379,375	$	138,155,320

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

3

GOLDEN GRAIN ENERGY, LLC

Balance Sheets

LIABILITIES AND MEMBERS' EQUITY	January 31, 2016		October 31, 2015
	(Unaudited)
Current Liabilities
Accounts payable	$	6,542,868	$	6,324,850
Accrued expenses	1,201,536		1,679,336
Other current liabilities	113,115		110,392
Total current liabilities	7,857,519		8,114,578
Long-term Liabilities
Deferred compensation	283,998		278,798
Deferred revenue, net of current portion	167,843		198,164
Total long-term liabilities	451,841		476,962
Commitments and Contingencies
Members' Equity (19,873,000 units issued and outstanding)	119,070,015		129,563,780
Total Liabilities and Members’ Equity	$	127,379,375	$	138,155,320

Notes to the 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, 2016			January 31, 2015
Revenues	$	48,773,123		$	61,048,123
Cost of Goods Sold	46,819,364			48,693,853
Gross Profit	1,953,759			12,354,270
Operating Expenses	998,968			1,055,988
Operating Income	954,791			11,298,282
Other Income (Expense)
Other income	99,204			82,864
Interest (expense)	(3,728		)	(35,289		)
Equity in net income of investments	2,367,068			3,556,776
Total Other Income	2,462,544			3,604,351
Net Income	$	3,417,335		$	14,902,633
Basic & diluted net income per unit	$	0.17		$	0.75
Weighted average units outstanding for the calculation of basic & diluted net income per unit	19,873,000			19,873,000
Distributions Per Unit	$	0.70		$	2.60

Notes to the 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, 2016			January 31, 2015
Cash Flows from Operating Activities
Net income	$	3,417,335		$	14,902,633
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	2,077,355			2,072,672
Unrealized (gain) loss on risk management & marketable securities	327,283			(219,460		)
Amortization of deferred revenue	(27,598		)	(73,835		)
Change in accretion of interest on grant & note receivable	(16,441		)	16,209
Distributions in excess of earnings from investments	1,298,325			6,905,817
Deferred compensation expense	5,200			131,139
Change in assets and liabilities
Accounts receivable	(1,129,635		)	5,815,852
Inventory	(1,192,994		)	(2,943,183		)
Prepaid expenses and other	(355,704		)	(981,262		)
Accounts payable	(318,431		)	(54,197		)
Accrued expenses	(477,800		)	(530,053		)
Deferred compensation payable	—			(126,014		)
Net cash provided by operating activities	3,606,895			24,916,318
Cash Flows from Investing Activities
Capital expenditures	(3,151,193		)	(2,327,466		)
Purchase of marketable securities	(5,000,000		)	—
Proceeds from sale of marketable securities	5,000,000			5,150,000
Net cash (used in) provided by investing activities	(3,151,193		)	2,822,534
Cash Flows from Financing Activities
Payments for long-term debt	—			(9,695		)
Distributions to members	(13,911,100		)	(51,669,800		)
Payments received on grant receivable	—			253,112
Net cash (used in) financing activities	(13,911,100		)	(51,426,383		)
Net (Decrease) in Cash and Equivalents	(13,455,398		)	(23,687,531		)
Cash and Equivalents – Beginning of Period	21,084,029			47,444,566
Cash and Equivalents – End of Period	$	7,628,631		$	23,757,035
Supplemental Cash Flow Information
Cash paid for interest	$	16,648		$	42,502
Supplemental Disclosure of Noncash Operating, Investing & Financing Activities
Accounts payable related to construction in process	$	536,449		$	396,200
Distributions declared and unpaid by equity method investee	1,509,600			—

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

6

GOLDEN GRAIN ENERGY, LLC

Notes to Unaudited Condensed Financial Statements

January 31, 2016

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, 2015, contained in the Company's annual report on Form 10-K for 2015.

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 regularly exceed federally insured limits. 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, 2016, marketable securities consisted of mutual funds invested in intermediate-term municipal and government bonds with an approximate cost and fair market value of $7,812,000 and $7,841,000, respectively, and certificates of deposit all with maturities of less than one year and approximate value of $5,500,000. At October 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 $6,257,000 and $6,241,000, respectively, and certificates of deposit all with maturities of less than one year and an approximate value of $7,000,000. For the periods ended January 31, 2016 and 2015, there was no other-than-temporary impairment recognized. For the three months ended January 31, 2016 and 2015, the Company recorded interest, dividends and net realized and unrealized gains and losses of approximately $99,000 and $83,000, respectively, from these investments part of other income (expense).

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 five 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

7

GOLDEN GRAIN ENERGY, LLC

Notes to Unaudited Condensed Financial Statements

January 31, 2016

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, Homeland Energy Solutions, LLC and Lawrenceville Tank, 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, 2016, for all companies, is based on the investee's results for the three months ended December 31, 2015.

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 net realized value.  In the valuation of inventories and purchase commitments, net realizable value is defined as estimated selling price in the ordinary course of business less reasonable predictable costs of completion, disposal and transportation.

Effective November 1, 2015, the Company adopted Accounting Standards Update 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory, requiring the measurement of inventory at the lower of cost or net realizable value. The adoption of this standard did not have a material effect on the financial statements.

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.

8

GOLDEN GRAIN ENERGY, LLC

Notes to Unaudited Condensed Financial Statements

January 31, 2016

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

Net income 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 and derivative instruments. The fair value of marketable securities and derivative financial instruments is based on quoted market prices. The fair value, determined using level 3 inputs, 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, 2016, ethanol sales accounted for approximately 80% of total revenue, distiller grains sales accounted for approximately 16% of total revenue, and corn oil sales accounted for approximately 4% 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, 2016 and October 31, 2015:

	January 31, 2016		October 31, 2015
Raw Materials	$	4,015,687	$	4,032,244
Work in Process	1,157,341		1,208,661
Finished Goods	2,886,471		1,625,600
Totals	$	8,059,499	$	6,866,505

9

GOLDEN GRAIN ENERGY, LLC

Notes to Unaudited Condensed Financial Statements

January 31, 2016

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 $35,000,000 and maturity on February 1, 2020. Interest on the term loan is payable monthly at 3.15% above the one-month LIBOR (3.58% as of January 31, 2016). The borrowings are secured by substantially all the assets of the Company. The agreement allows for additional reductions in the maximum borrowings at the Company's request. 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, 2016, the Company had no outstanding borrowings and $10 million available to borrow under the credit agreement. As of October 31, 2015, the Company had no borrowings outstanding.

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 from the related parties during the three months ended January 31, 2016 totaled approximately $24,260,000. Purchases during the three months ended January 31, 2015 totaled approximately $18,984,000. As of January 31, 2016 and October 31, 2015, the amount owed to related parties was approximately $839,000 and $666,000, respectively.

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,
	2016		2015
Sales ethanol, distiller grains & corn oil	$	48,873,000	$	61,081,000
Marketing fees	100,000		89,000
As of	January 31, 2016		October 31, 2015
Amount due from RPMG	$	3,836,000	$	2,717,000

10

GOLDEN GRAIN ENERGY, LLC

Notes to Unaudited Condensed Financial Statements

January 31, 2016

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 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, 2016 and 2015 and the fair value of derivatives as of January 31, 2016 and October 31, 2015:

	Income Statement Classification	Realized Gain		Change in Unrealized Gain (Loss)			Total Gain
Derivatives not designated as hedging instruments:
Commodity Contracts for the	Revenue	$	—	$	—		$	—
three months ended January 31, 2016	Cost of Goods Sold	382,000		217,000			599,000
	Total	$	382,000	$	217,000		$	599,000
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

	Balance Sheet Classification	January 31, 2016			October 31, 2015
Futures and option contracts through December 2016
In gain position		$	278,000		$	58,000
In loss position		(241,000		)	(237,000		)
Cash held by broker		415,000			1,058,000
	Current Asset	$	452,000		$	879,000

11

GOLDEN GRAIN ENERGY, LLC

Notes to Unaudited Condensed Financial Statements

January 31, 2016

As of January 31, 2016, the Company had the following approximate outstanding purchase and sale commitments, of which approximately $11,715,000 of the purchase commitments were with related parties.

	Commitments Through	Amount
Sale commitments
Corn Oil - fixed price	April 2016	$	1,033,000
Distiller Grains - fixed price	March 2016	2,528,000
Purchase commitments
Corn - fixed price	December 2016	$	3,233,000
Corn - basis contract	May 2016	18,585,000
Natural gas - fixed price	March 2016	396,000

As of January 31, 2016, the Company has fixed price futures and forward contracts in place for approximately 9% of our anticipated corn needs, 16% of our natural gas needs and 0% of our ethanol sales for the next 12 months with no open positions beyond that period.

As of January 31, 2016, the Company had approximately 36,000 bushels with approximate market value of $126,000 of priced later and deferred payment corn contracts. As of October 31, 2015, the Company had approximately 197,000 bushels with approximate market value of $705,000 of priced later and deferred payment corn contracts.

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:

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GOLDEN GRAIN ENERGY, LLC

Notes to Unaudited Condensed Financial Statements

January 31, 2016

	Total			Level 1			Level 2			Level 3
Marketable securities
Assets, January 31, 2016	$	7,841,000		$	7,841,000		$	—		$	—
Assets, October 31, 2015	6,241,000			6,241,000			—			—
Derivative financial instruments
January 31, 2016
Assets	$	278,000		$	260,000		$	18,000		$	—
Liabilities	(241,000		)	(109,000		)	(132,000		)	—
October 31, 2015
Assets	$	58,000		$	33,000		$	25,000		$	—
Liabilities	(237,000		)	(85,000		)	(152,000		)	—

8. INVESTMENTS

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

Balance Sheet	12/31/2015		9/30/2015
Current Assets	$	293,971	$	285,879
Other Assets	252,804		256,144
Current Liabilities	167,964		142,927
Long-term Debt	49,350		49,241
Members’ Equity	329,461		349,855
	Three Months Ended December 31,
Income Statement	2015		2014
Revenue	$	184,049	$	221,543
Gross Profit	21,795		49,229
Net Income	17,520		44,036

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

	Three Months Ended January 31,
Equity in Net Income	2016		2015
Absolute Energy	$	550	$	1,244
Guardian Energy	1,368		1,367
Homeland Energy Solutions	405		990
Other	44		(44		)
Total	$	2,367	$	3,557

During the three months ended January 31, 2016, Guardian Energy made distributions in excess of the equity balance recorded by the Company. The excess distribution was approximately $961,000 and is recorded as part of income for the three months ended January 31, 2016. The following table shows the condensed financial information of Guardian Energy, which represents greater than 10% of the net income during certain periods presented.

13

GOLDEN GRAIN ENERGY, LLC

Notes to Unaudited Condensed Financial Statements

January 31, 2016

Guardian Energy Condensed Financial Information
Balance Sheet	12/31/2015		9/30/2015
Current Assets	$	25,126	$	23,053
Other Assets	46,000		47,653
Current Liabilities	11,707		7,918
Long-term Debt	49,000		49,000
Members’ Equity	10,419		13,788
	Three Months Ended
Income Statement	12/31/2015		12/31/2014
Revenue	$	52,137	$	65,001
Gross Profit	7,290		16,354
Net Income	3,881		12,924

The following table (in 000's) shows the condensed financial information of Homeland Energy Solutions. The Company's equitable portion of assets of Homeland Energy Solutions is greater than than 10% of the Company's assets for certain periods presented:

Homeland Energy Solutions Condensed Financial Information
Balance Sheet	12/31/2015		9/30/2015
Current Assets	$	76,604	$	80,156
Other Assets	110,388		109,910
Current Liabilities	37,661		36,118
Long-term Debt	350		241
Members’ Equity	148,980		153,707
	Three Months Ended
Income Statement	12/31/2015		12/31/2014
Revenue	$	68,246	$	77,648
Gross Profit	59,872		13,887
Net Income	4,961		12,528

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

Forward Looking Statements

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

• Reduced corn ethanol use requirements in the EPA's renewable volume obligations under the Renewable Fuels Standard for 2014, 2015 and 2016;

• 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;

• Any elimination of the renewable fuels use requirements under the RFS;

• 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;

• Lower distillers grains prices which result from the Chinese antidumping investigation;

• 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 16, 2015, our board of directors declared a distribution of $0.70 per membership unit for members of record as of November 16, 2015. The total amount of the distribution was $13,911,100 which was paid in December 2015.

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On November 30, 2015, the EPA released its final renewable volume obligations for corn-based ethanol under the RFS which is lower than the statutory requirements for 2014, 2015 and 2016. The renewable volume obligations for conventional biofuels, including the corn-based ethanol we produce, is significantly lower than the statutory standard set in the RFS. The RFS required the use of 14.40 billion gallons of conventional biofuels in 2014 and 15 billion gallons in 2015 and 2016. Pursuant to the EPA regulation, the requirement for conventional biofuels in 2014 was 13.61 billion gallons, 14.05 billion gallons in 2015 and 14.5 billion gallons in 2016. This is a significant reduction in each of these years compared to the requirements in the RFS. Further, due to the lower price of gasoline, we do not anticipate that renewable fuels blenders will use more ethanol than is required by the RFS which may result in a significant decrease in ethanol demand. This departure by the EPA from the statutory requirements in the RFS is expected to have a negative impact on ethanol prices and demand, and is expected to result in reduced operating margins in the future. This reduction in ethanol demand is expected to have a material negative impact on our operating performance and financial condition.

Results of Operations

Comparison of the Three Months Ended January 31, 2016 and 2015

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, 2016 and 2015:

	2016			2015
Income Statement Data	Amount		%	Amount		%
Revenues	$	48,773,123	100.0	$	61,048,123	100.0
Cost of Goods Sold	46,819,364		96.0	48,693,853		79.8
Gross Profit	1,953,759		4.0	12,354,270		20.2
Operating Expenses	998,968		2.0	1,055,988		1.7
Operating Income	954,791		2.0	11,298,282		18.5
Other Income	2,462,544		5.0	3,604,351		5.9
Net Income	$	3,417,335	7.0	$	14,902,633	24.4

Revenues. Our total revenue was lower for our first quarter of 2016 compared to the same period of 2015 due to the lower average prices we received for our products. For our first quarter of 2016, ethanol sales accounted for approximately 80% of our total revenue, distiller grains sales accounted for approximately 16% of our total revenue, and corn oil sales accounted for approximately 4% of our total revenue. 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.

The average price per gallon we received for our ethanol was approximately 27% lower for our first quarter of 2016 compared to the same period of 2015. Management attributes this decrease, in the average price we received for our ethanol, to lower gasoline and corn prices which typically impacts market ethanol prices. Further, ethanol supply in the market has been higher which has negatively impacted market ethanol prices. Management anticipates that ethanol prices will remain lower due to the current relationship between ethanol supply and demand. Management anticipates that ethanol exports may remain at their current levels due to low ethanol prices, which could provide some price support for ethanol. However, without a significant increase in domestic ethanol demand, ethanol prices may remain low. Further, corn and gasoline prices are expected to remain low which may continue to negatively impact market ethanol prices. Due to the stronger United States Dollar compared to the Brazilian Reis along with very favorable prices for sugarcane based ethanol in the United States, specifically in California, management anticipates increased ethanol imports from Brazil which will further impact ethanol supplies in the United States. If we experience significantly more ethanol imports compared to our ethanol exports, it may result in further ethanol price decreases.

Management believes that ethanol prices were negatively impacted by the EPA's release of the proposed renewable volume obligations for 2014, 2015 and 2016 which reduced the amount of corn-based ethanol which must be used in the United States during those years. Management believes that this reduction has had a negative impact on ethanol demand and prices which may continue through the next two years. This negative impact is especially pronounced due to current low gasoline prices. In the past, many fuel blenders used ethanol because of the difference in price between gasoline and ethanol. This voluntary use of ethanol in excess of the requirements in the RFS has decreased due to the fact that the spread between the price of ethanol and gasoline

16

is smaller. Management anticipates continued volatility in the ethanol market as a result of changing gasoline prices which impacts ethanol demand and ultimately prices.

We sold approximately 6% more gallons of ethanol during our first quarter of 2016 compared to the same period of 2015. Management attributes this increase in ethanol sales with increased ethanol production efficiency due to plant improvement projects we implemented during our 2015 fiscal year. Our total ethanol production was approximately 5% higher during our first quarter of 2016 as compared to the same period of 2015. Management anticipates that our ethanol sales and production will be slightly greater during the remaining quarters of our 2016 fiscal year compared to our 2015 fiscal year due to these plant efficiency improvements.

During our first quarter of 2016, we experienced no realized or unrealized gains on our ethanol derivatives. By comparison, we experienced combined realized and unrealized gains on our ethanol derivative instruments of approximately $56,000 during our first quarter of 2015 which increased our revenue.

The average price per ton we received for our dried distillers grains was approximately 12% less for our first quarter of 2016 compared to the same period of 2015. In addition, the average price per ton we received for our modified/wet distillers grains was approximately 2% less for our first quarter of 2016 compared to the same period of 2015. Management attributes these price decreases with lower market corn prices and higher corn supplies after the 2015 harvest. In addition, China started refusing distiller grains from the United States in January 2016 which resulted in lower distiller prices and will result in uncertainty regarding future distiller grains demand. This uncertainty may continue to negatively impact market distiller grains prices. Management anticipates that distiller grains will begin to consistently trade at a relative value of less than 100% of corn for the foreseeable future primarily due to China filing antidumping and countervailing duty claims against the United States distiller grain markets.

Our distiller grains production was approximately 5% greater during our first quarter of 2016 compared to the same period of 2015 due primarily to an increase in ethanol gallons produced but offset by improved ethanol conversion efficiency and increased corn oil production. As we extract more ethanol and corn oil from a bushel of corn, it results in less total tons of distiller grains produced. Management anticipates distiller grains production to be comparable for the remaining quarters of our 2016 fiscal year compared to our first quarter of 2016 due to the net effect of an anticipated increase in total ethanol production, partially offset by improved ethanol conversion rates and corn oil production.

We sold approximately 33% more pounds of corn oil during our first quarter of 2016 compared to the same period of 2015. This increase in corn oil sales resulted from increased ethanol production during the 2016 period along with improved corn oil extraction efficiency. The average price per pound we received for our corn oil was approximately 20% less for our first quarter of 2016 compared to the same period of 2015. 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. The biodiesel industry has been impacted by the expiration of the biodiesel blenders' tax credit which was not reinstated until the end of 2015. Since biodiesel production is a major source of corn oil demand, lower biodiesel demand has impacted corn oil prices. However, management believes that corn oil demand will increase during our 2016 fiscal year since the biodiesel blenders' tax credit was recently renewed for 2016. In addition, corn oil prices have been impacted by lower soybean oil prices as soybean oil is a product that typically competes with corn oil, particularly for biodiesel production. Management anticipates relatively stable corn oil prices going forward unless demand increases significantly for biodiesel production.

Cost of Goods Sold. Our cost of goods sold was lower for our first quarter of 2016 compared to the same period of 2015 due primarily to lower corn costs and natural gas costs. Our average cost per bushel of corn was approximately 6% lower during our first quarter of 2016 compared to the same period of 2015. This decrease in our cost per bushel of corn was primarily related to decreased market corn prices. Corn prices have continued to trend lower due to abundant corn supplies and another large corn crop in the fall of 2015. These two factors, in addition to China terminating distiller grain imports, may lead to continued lower corn prices for our 2016 fiscal year.

We consumed approximately 3% more corn during our first quarter of 2016 compared to the same period of 2015 due to increased ethanol production. We were able to improve our corn conversion rate by approximately 1% during our first quarter of 2016 compared to the same period of 2015 which allowed us to produce more of ethanol per bushel of corn. Management anticipates consistent corn consumption during the rest of our 2016 fiscal year, provided we continue to experience profitable operating margins which allow us to operate the ethanol plant at capacity.

Our natural gas costs decreased by approximately 38% during our first quarter of 2016 compared to the same period of 2015. The average price we paid per MMBtu of natural gas was approximately 39% lower during our first quarter of 2016 compared to the same period of 2015. Management attributes this decrease in natural gas prices with lower commodity and energy prices during the 2016 period as well as growing supplies of natural gas and a mild winter. Management anticipates that natural gas

17

prices will continue to trade lower than recent history. Our natural gas consumption during our first quarter of 2016 was approximately 3% higher and we experienced approximately a 2% improvement in efficiencies compared to the same period of 2015. Management attributes this increase in our natural gas consumption with increased ethanol production offset by production efficiencies.

We experienced combined realized and unrealized gains of approximately $599,000 for our first quarter of 2016 related to our corn and natural gas derivative instruments which decreased our cost of goods sold. By comparison, we experienced approximately $386,000 of combined realized and unrealized gains for the same period of 2015 related to our corn and natural gas derivative instruments which 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 lower during our first quarter of 2016 compared to the same period of 2015 primary due to less personnel expense during 2016, offset by higher contributions to trade organizations during 2016 as compared to the first fiscal quarter of 2015. Management anticipates that our operating expenses will remain slightly lower during the remaining quarters of our 2016 fiscal year compared to our 2015 fiscal year.

Other Income (Expense). Other income was lower for our first quarter of 2016 compared to the same period of 2015 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 less favorable operating margins during our first quarter of 2016. We had less interest expense during our first quarter of 2016 compared to the same period of 2015 due to less outstanding borrowing on our revolving loan. We had more other income during our first quarter of 2016 compared to the same period of 2015 due to an increase in income from marketable securities.

Changes in Financial Condition for the Three Months Ended January 31, 2016

Current Assets. We had less cash and equivalents at January 31, 2016 compared to October 31, 2015. This decrease in our cash position is due primarily to nearly $14 million in distributions we paid to our members during December 2015. The increase in our accounts receivable at January 31, 2016 compared to October 31, 2015 was due to the timing of our product shipments and payments at the end of our first fiscal quarter of 2016 compared to the end of our 2015 fiscal year. The value of our inventory was greater at January 31, 2016 compared to October 31, 2015 primarily due to increased finished goods inventory we had on hand at the end of our first fiscal quarter. The increase in other receivable at January 31, 2016 compared to October 31, 2015 was due to a distribution receivable from one of our investments in another ethanol facility.

Property and Equipment. The net value of our property and equipment was higher at January 31, 2016 compared to October 31, 2015 due to an increase in capital projects offset by depreciation. We had approximately $8.7 million in construction in progress at January 31, 2016 related to various capital projects we were conducting during our 2015 and 2016 fiscal years, the largest of which is our water treatment facility.

Other Assets. Our other assets were lower at January 31, 2016 compared to October 31, 2015 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, 2016.

Current Liabilities. Our accounts payable at January 31, 2016 were comparable to October 31, 2015. Our accrued expenses were lower at January 31, 2016 compared to October 31, 2015 due to payment of employee benefits as it relates to bonuses for our 2015 fiscal year, which are partially based on net income and therefore are not expected to be as high in 2016 as they were in 2015.

Long-term Liabilities. Our long-term liabilities were similar at January 31, 2016 and October 31, 2015.

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, 2016, we had $10 million available pursuant to our revolving term loan and approximately $21 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. We expect to fund our current capital projects using cash we have on hand as well as our

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

The following table shows our cash flows for the three months ended January 31, 2016 and 2015:

	Three Months Ended January 31,
	2016			2015
Net cash provided by operating activities	$	3,606,895		$	24,916,318
Net cash (used in) provided by investing activities	(3,151,193		)	2,822,534
Net cash (used in) financing activities	(13,911,100		)	(51,426,383		)

Cash Flow From Operations

Our cash flows from operations for the three months ended January 31, 2016 were lower compared to the same period of 2015 due primarily to decreased net income in addition to a decrease in distributions received from our investments and timing of payments of working capital components.

Cash Flow From Investing Activities

We used more cash for investing activities during our three months ended January 31, 2016 compared to the same period of 2015 due to having less sales of marketable securities during the 2016 period. During the 2016 period, we had more capital expenditures compared to the 2015 period due to our plant improvement projects.

Cash Flow From Financing Activities.

During our three months ended January 31, 2016, we used significantly less cash for financing activities related to less distributions paid to members.

Short-Term and Long-Term Debt Sources

We have a credit facility with Farm Credit Services of America "Farm Credit" with an initial availability of $35 million, which currently has availability of $10 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.

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. During the first fiscal quarter of 2016, we executed an amendment to our credit agreements with Farm Credit which adjusted our loan covenants related to issuing distributions to our members and changed the terms of our revolving line of credit. We will have $10 million available pursuant to this long-term revolving line of credit until it matures on February 1, 2020. We agreed to pay an annual fee of 0.5% of the unused portion of this loan. As of January 31, 2016, we had $0 outstanding on this loan with an accrued interest rate of 3.58% per year. As of January 31, 2016, we had $10 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

19

the purpose of servicing the loans. As a result, CoBank will act as the agent for Farm Credit with respect to our loans. We agreed to pay CoBank an annual fee of $5,000 as the agent for Farm Credit.

Covenants

Our credit agreements with Farm Credit are subject to numerous covenants requiring us to maintain various financial ratios. As of January 31, 2016, 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 five 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

20

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.

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, 2016. 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, 2016, we had price protection in place for approximately 9% of our anticipated corn needs, 16% 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, 2016, 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, 2016. 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	2,510,000	MMBTU	10%	$	641,000
Ethanol	115,000,000	Gallons	10%	14,594,000
Corn	35,306,000	Bushels	10%	12,551,000

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.

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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, 2016.  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.

For the fiscal quarter ended January 31, 2016, there has been no change in our internal control over financial reporting that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

PART II. OTHER INFORMATION

Item 1. Legal Proceedings

None.

Item 1A. Risk Factors

The following risk factor is provided due to material changes from the risk factors previously disclosed in our annual report on Form 10-K. The risk factor set forth below should be read in conjunction with the risk factors section and the Management's Discussion and Analysis section for the fiscal year ended October 31, 2015, included in our annual report on Form 10-K.

Distillers grains demand and prices may be negatively impacted by the Chinese antidumping and countervailing duty investigation. China is the world's largest importer of distillers grains produced in the United States. On January 12, 2016, the Chinese government announced that it will commence an antidumping and countervailing duty investigation related to distillers grains imported from the United States. During the investigation, it is likely that distillers grains exports to China will be reduced, regardless of whether China ends up instituting a tariff on distillers grains produced in the United States and exported to China. Further, if China introduces a tariff on distillers grains produced in the United States and exported to China, it could remove the largest source of export demand for distillers grains. This antidumping and countervailing duty investigation could significantly decrease demand and prices for distillers grains produced in the United States. This potential reduction in demand along with lower domestic corn prices could negatively impact our ability to profitably operate the ethanol plant.

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.

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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, 2016, formatted in XBRL (eXtensible Business Reporting Language): (i) Balance Sheets as of January 31, 2016 and October 31, 2015, (ii) Statements of Operations for the three months ended January 31, 2016 and 2015, (iii) Statements of Cash Flows for the three months ended January 31, 2016 and 2015, 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.

		GOLDEN GRAIN ENERGY, LLC
Date:	March 14, 2016	/s/ Curtis Strong
		Curtis Strong
		Executive Vice-President
		(Principal Executive Officer)
Date:	March 14, 2016	/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 14, 2016	/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 14, 2016	/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, 2016, 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 14, 2016

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, 2016, 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 14, 2016

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Document and Entity Information Document - shares	3 Months Ended
	Jan. 31, 2016	Mar. 14, 2016
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, 2016
Document Fiscal Year Focus	2016
Document Fiscal Period Focus	Q1
Amendment Flag	false
Entity Common Stock, Shares Outstanding		19,873,000

XML

Balance Sheet - USD ($)	Jan. 31, 2016	Oct. 31, 2015
Current Assets
Cash and equivalents	$ 7,628,631	$ 21,084,029
Marketable securities	13,341,028	13,241,062
Accounts receivable	3,847,227	2,717,592
Other receivables	2,348,094	669,930
Derivative instruments	452,083	879,332
Inventory	8,059,499	6,866,505
Prepaid expenses and other	1,827,928	1,578,458
Total current assets	37,504,490	47,036,908
Property and Equipment
Land and land improvements	12,516,479	12,516,479
Building and grounds	25,761,752	25,761,752
Grain handling equipment	15,329,548	15,178,214
Office equipment	220,527	217,424
Plant and process equipment	85,512,612	84,802,333
Construction in progress	8,710,196	5,887,270
Gross property and equipment	148,051,114	144,363,472
Less accumulated depreciation	84,288,127	82,232,924
Net property and equipment	63,762,987	62,130,548
Other Assets
Investments	24,526,518	27,334,443
Other assets	1,585,380	1,653,421
Total other assets	26,111,898	28,987,864
Total Assets	127,379,375	138,155,320
Current Liabilities
Accounts payable	6,542,868	6,324,850
Accrued expenses	1,201,536	1,679,336
Other current liabilities	113,115	110,392
Total current liabilities	7,857,519	8,114,578
Long-term Liabilities
Deferred compensation	283,998	278,798
Deferred revenue, net of current portion	167,843	198,164
Total long-term liabilities	$ 451,841	$ 476,962
Commitments and Contingencies
Members' Equity (19,873,000 units issued and outstanding)	$ 119,070,015	$ 129,563,780
Total Liabilities and Members’ Equity	$ 127,379,375	$ 138,155,320

XML

Balance Sheet Parenthetical - shares	Jan. 31, 2016	Oct. 31, 2015
Members' Equity, units issued and outstanding	19,873,000	19,873,000

XML

Statement of Operations - USD ($)	3 Months Ended
	Jan. 31, 2016	Jan. 31, 2015
Revenues	$ 48,773,123	$ 61,048,123
Cost of Goods Sold	46,819,364	48,693,853
Gross Profit	1,953,759	12,354,270
Operating Expenses	998,968	1,055,988
Operating Income	954,791	11,298,282
Other Income (Expense)
Other income	99,204	82,864
Interest (expense)	(3,728)	(35,289)
Equity in net income of investments	2,367,068	3,556,776
Total Other Income	2,462,544	3,604,351
Net Income	$ 3,417,335	$ 14,902,633
Basic & diluted net income per unit	$ 0.17	$ 0.75
Weighted average units outstanding for the calculation of basic & diluted net income per unit	19,873,000	19,873,000
Distribution Per Unit	$ 0.70	$ 2.60

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Statement of Cash Flows - USD ($)	3 Months Ended
	Jan. 31, 2016	Jan. 31, 2015
Cash Flows from Operating Activities
Net Income	$ 3,417,335	$ 14,902,633
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	2,077,355	2,072,672
Unrealized (gain) on risk management & marketable securities	327,283	(219,460)
Amortization of deferred revenue	(27,598)	(73,835)
Change in accretion of interest on grant & note receivable	(16,441)	16,209
Distributions in excess of earnings from investments	1,298,325	6,905,817
Deferred compensation expense	5,200	131,139
Change in assets and liabilities
Accounts receivable	(1,129,635)	5,815,852
Inventory	(1,192,994)	(2,943,183)
Prepaid expenses and other	(355,704)	(981,262)
Accounts payable	(318,431)	(54,197)
Accrued expenses	(477,800)	(530,053)
Deferred compensation payable	0	(126,014)
Net cash provided by operating activities	3,606,895	24,916,318
Cash Flows from Investing Activities
Capital expenditures	(3,151,193)	(2,327,466)
Purchase of marketable securities	(5,000,000)	0
Proceeds from sale of marketable securities	5,000,000	5,150,000
Net cash (used in) provided by investing activities	(3,151,193)	2,822,534
Cash Flows from Financing Activities
Payments for long-term debt	0	(9,695)
Distributions to members	(13,911,100)	(51,669,800)
Payments received on grant receivable	0	253,112
Net cash (used in) financing activities	(13,911,100)	(51,426,383)
Net (Decrease) Increase in Cash and Equivalents	(13,455,398)	(23,687,531)
Cash and Equivalents – Beginning of Period	21,084,029	47,444,566
Cash and Equivalents – End of Period	7,628,631	23,757,035
Supplemental Cash Flow Information
Cash paid for interest	16,648	42,502
Supplemental Disclosure of Noncash Operating, Investing & Financing Activities
Accounts payable related to construction in process	536,449	396,200
Distributions Declared and unpaid by equity method investee	$ 1,509,600	$ 0

XML

Summary of Significant Accounting Policies

3 Months Ended

Jan. 31, 2016

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, 2015, contained in the Company's annual report on Form 10-K for 2015.

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 regularly exceed federally insured limits. 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, 2016, marketable securities consisted of mutual funds invested in intermediate-term municipal and government bonds with an approximate cost and fair market value of $7,812,000 and $7,841,000, respectively, and certificates of deposit all with maturities of less than one year and approximate value of $5,500,000. At October 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 $6,257,000 and $6,241,000, respectively, and certificates of deposit all with maturities of less than one year and an approximate value of $7,000,000. For the periods ended January 31, 2016 and 2015, there was no other-than-temporary impairment recognized. For the three months ended January 31, 2016 and 2015, the Company recorded interest, dividends and net realized and unrealized gains and losses of approximately $99,000 and $83,000, respectively, from these investments part of other income (expense).

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 five 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, Homeland Energy Solutions, LLC and Lawrenceville Tank, 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, 2016, for all companies, is based on the investee's results for the three months ended December 31, 2015.

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 net realized value.  In the valuation of inventories and purchase commitments, net realizable value is defined as estimated selling price in the ordinary course of business less reasonable predictable costs of completion, disposal and transportation.

Effective November 1, 2015, the Company adopted Accounting Standards Update 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory, requiring the measurement of inventory at the lower of cost or net realizable value. The adoption of this standard did not have a material effect on the financial statements.

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.

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 and derivative instruments. The fair value of marketable securities and derivative financial instruments is based on quoted market prices. The fair value, determined using level 3 inputs, 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, 2016, ethanol sales accounted for approximately 80% of total revenue, distiller grains sales accounted for approximately 16% of total revenue, and corn oil sales accounted for approximately 4% 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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Inventory

3 Months Ended

Jan. 31, 2016

Inventory [Abstract]

Inventory

INVENTORY

Inventory consisted of the following as of January 31, 2016 and October 31, 2015:

	January 31, 2016		October 31, 2015
Raw Materials	$	4,015,687	$	4,032,244
Work in Process	1,157,341		1,208,661
Finished Goods	2,886,471		1,625,600
Totals	$	8,059,499	$	6,866,505

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Bank Financing

3 Months Ended

Jan. 31, 2016

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 $35,000,000 and maturity on February 1, 2020. Interest on the term loan is payable monthly at 3.15% above the one-month LIBOR (3.58% as of January 31, 2016). The borrowings are secured by substantially all the assets of the Company. The agreement allows for additional reductions in the maximum borrowings at the Company's request. 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, 2016, the Company had no outstanding borrowings and $10 million available to borrow under the credit agreement. As of October 31, 2015, the Company had no borrowings outstanding.

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Related Party Transactions

3 Months Ended

Jan. 31, 2016

Related Party Transactions [Abstract]

Related Party Transactions Disclosure [Text Block]

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 from the related parties during the three months ended January 31, 2016 totaled approximately $24,260,000. Purchases during the three months ended January 31, 2015 totaled approximately $18,984,000. As of January 31, 2016 and October 31, 2015, the amount owed to related parties was approximately $839,000 and $666,000, respectively.

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Commitments, Contingencies and Agreements

3 Months Ended

Jan. 31, 2016

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,
	2016		2015
Sales ethanol, distiller grains & corn oil	$	48,873,000	$	61,081,000
Marketing fees	100,000		89,000
As of	January 31, 2016		October 31, 2015
Amount due from RPMG	$	3,836,000	$	2,717,000

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Risk Management

3 Months Ended

Jan. 31, 2016

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, 2016 and 2015 and the fair value of derivatives as of January 31, 2016 and October 31, 2015:

	Income Statement Classification	Realized Gain		Change in Unrealized Gain (Loss)			Total Gain
Derivatives not designated as hedging instruments:
Commodity Contracts for the	Revenue	$	—	$	—		$	—
three months ended January 31, 2016	Cost of Goods Sold	382,000		217,000			599,000
	Total	$	382,000	$	217,000		$	599,000
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

	Balance Sheet Classification	January 31, 2016			October 31, 2015
Futures and option contracts through December 2016
In gain position		$	278,000		$	58,000
In loss position		(241,000		)	(237,000		)
Cash held by broker		415,000			1,058,000
	Current Asset	$	452,000		$	879,000

As of January 31, 2016, the Company had the following approximate outstanding purchase and sale commitments, of which approximately $11,715,000 of the purchase commitments were with related parties.

	Commitments Through	Amount
Sale commitments
Corn Oil - fixed price	April 2016	$	1,033,000
Distiller Grains - fixed price	March 2016	2,528,000
Purchase commitments
Corn - fixed price	December 2016	$	3,233,000
Corn - basis contract	May 2016	18,585,000
Natural gas - fixed price	March 2016	396,000

As of January 31, 2016, the Company has fixed price futures and forward contracts in place for approximately 9% of our anticipated corn needs, 16% of our natural gas needs and 0% of our ethanol sales for the next 12 months with no open positions beyond that period.

As of January 31, 2016, the Company had approximately 36,000 bushels with approximate market value of $126,000 of priced later and deferred payment corn contracts. As of October 31, 2015, the Company had approximately 197,000 bushels with approximate market value of $705,000 of priced later and deferred payment corn contracts.

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Fair Value Measurements

3 Months Ended

Jan. 31, 2016

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, 2016	$	7,841,000		$	7,841,000		$	—		$	—
Assets, October 31, 2015	6,241,000			6,241,000			—			—
Derivative financial instruments
January 31, 2016
Assets	$	278,000		$	260,000		$	18,000		$	—
Liabilities	(241,000		)	(109,000		)	(132,000		)	—
October 31, 2015
Assets	$	58,000		$	33,000		$	25,000		$	—
Liabilities	(237,000		)	(85,000		)	(152,000		)	—

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Investments

3 Months Ended

Jan. 31, 2016

Investments [Abstract]

Investments

INVESTMENTS

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

Balance Sheet	12/31/2015		9/30/2015
Current Assets	$	293,971	$	285,879
Other Assets	252,804		256,144
Current Liabilities	167,964		142,927
Long-term Debt	49,350		49,241
Members’ Equity	329,461		349,855
	Three Months Ended December 31,
Income Statement	2015		2014
Revenue	$	184,049	$	221,543
Gross Profit	21,795		49,229
Net Income	17,520		44,036

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

	Three Months Ended January 31,
Equity in Net Income	2016		2015
Absolute Energy	$	550	$	1,244
Guardian Energy	1,368		1,367
Homeland Energy Solutions	405		990
Other	44		(44		)
Total	$	2,367	$	3,557

During the three months ended January 31, 2016, Guardian Energy made distributions in excess of the equity balance recorded by the Company. The excess distribution was approximately $961,000 and is recorded as part of income for the three months ended January 31, 2016. The following table shows the condensed financial information of Guardian Energy, which represents greater than 10% of the net income during certain periods presented.

Guardian Energy Condensed Financial Information
Balance Sheet	12/31/2015		9/30/2015
Current Assets	$	25,126	$	23,053
Other Assets	46,000		47,653
Current Liabilities	11,707		7,918
Long-term Debt	49,000		49,000
Members’ Equity	10,419		13,788
	Three Months Ended
Income Statement	12/31/2015		12/31/2014
Revenue	$	52,137	$	65,001
Gross Profit	7,290		16,354
Net Income	3,881		12,924

The following table (in 000's) shows the condensed financial information of Homeland Energy Solutions. The Company's equitable portion of assets of Homeland Energy Solutions is greater than than 10% of the Company's assets for certain periods presented:

Homeland Energy Solutions Condensed Financial Information
Balance Sheet	12/31/2015		9/30/2015
Current Assets	$	76,604	$	80,156
Other Assets	110,388		109,910
Current Liabilities	37,661		36,118
Long-term Debt	350		241
Members’ Equity	148,980		153,707
	Three Months Ended
Income Statement	12/31/2015		12/31/2014
Revenue	$	68,246	$	77,648
Gross Profit	59,872		13,887
Net Income	4,961		12,528

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Accounting Policies

3 Months Ended

Jan. 31, 2016

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 regularly exceed federally insured limits. 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, 2016, marketable securities consisted of mutual funds invested in intermediate-term municipal and government bonds with an approximate cost and fair market value of $7,812,000 and $7,841,000, respectively, and certificates of deposit all with maturities of less than one year and approximate value of $5,500,000. At October 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 $6,257,000 and $6,241,000, respectively, and certificates of deposit all with maturities of less than one year and an approximate value of $7,000,000. For the periods ended January 31, 2016 and 2015, there was no other-than-temporary impairment recognized. For the three months ended January 31, 2016 and 2015, the Company recorded interest, dividends and net realized and unrealized gains and losses of approximately $99,000 and $83,000, respectively, from these investments part of other income (expense).

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 five 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, Homeland Energy Solutions, LLC and Lawrenceville Tank, 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, 2016, for all companies, is based on the investee's results for the three months ended December 31, 2015.

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 net realized value.  In the valuation of inventories and purchase commitments, net realizable value is defined as estimated selling price in the ordinary course of business less reasonable predictable costs of completion, disposal and transportation.

Effective November 1, 2015, the Company adopted Accounting Standards Update 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory, requiring the measurement of inventory at the lower of cost or net realizable value. The adoption of this standard did not have a material effect on the financial statements.

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.

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 and derivative instruments. The fair value of marketable securities and derivative financial instruments is based on quoted market prices. The fair value, determined using level 3 inputs, 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, 2016, ethanol sales accounted for approximately 80% of total revenue, distiller grains sales accounted for approximately 16% of total revenue, and corn oil sales accounted for approximately 4% 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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Inventory (Tables)

3 Months Ended

Jan. 31, 2016

Inventory [Abstract]

Schedule of Inventory

	January 31, 2016		October 31, 2015
Raw Materials	$	4,015,687	$	4,032,244
Work in Process	1,157,341		1,208,661
Finished Goods	2,886,471		1,625,600
Totals	$	8,059,499	$	6,866,505

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Commitments, Contingencies and Agreements (Tables)

3 Months Ended

Jan. 31, 2016

Commitments, Contingencies and Agreements [Abstract]

Schedule of Related Party Transactions

	Three Months Ended January 31,
	2016		2015
Sales ethanol, distiller grains & corn oil	$	48,873,000	$	61,081,000
Marketing fees	100,000		89,000
As of	January 31, 2016		October 31, 2015
Amount due from RPMG	$	3,836,000	$	2,717,000

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Risk Management (Tables)

3 Months Ended

Jan. 31, 2016

Risk Management [Abstract]

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

	Income Statement Classification	Realized Gain		Change in Unrealized Gain (Loss)			Total Gain
Derivatives not designated as hedging instruments:
Commodity Contracts for the	Revenue	$	—	$	—		$	—
three months ended January 31, 2016	Cost of Goods Sold	382,000		217,000			599,000
	Total	$	382,000	$	217,000		$	599,000
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

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

	Balance Sheet Classification	January 31, 2016			October 31, 2015
Futures and option contracts through December 2016
In gain position		$	278,000		$	58,000
In loss position		(241,000		)	(237,000		)
Cash held by broker		415,000			1,058,000
	Current Asset	$	452,000		$	879,000

Long-term Purchase Commitment

	Commitments Through	Amount
Sale commitments
Corn Oil - fixed price	April 2016	$	1,033,000
Distiller Grains - fixed price	March 2016	2,528,000
Purchase commitments
Corn - fixed price	December 2016	$	3,233,000
Corn - basis contract	May 2016	18,585,000
Natural gas - fixed price	March 2016	396,000

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Fair Value Measurements (Tables)

3 Months Ended

Jan. 31, 2016

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, 2016	$	7,841,000		$	7,841,000		$	—		$	—
Assets, October 31, 2015	6,241,000			6,241,000			—			—
Derivative financial instruments
January 31, 2016
Assets	$	278,000		$	260,000		$	18,000		$	—
Liabilities	(241,000		)	(109,000		)	(132,000		)	—
October 31, 2015
Assets	$	58,000		$	33,000		$	25,000		$	—
Liabilities	(237,000		)	(85,000		)	(152,000		)	—

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Investments (Tables)

3 Months Ended

Jan. 31, 2016

Investments [Abstract]

Schedule of Equity Method Investments

Balance Sheet	12/31/2015		9/30/2015
Current Assets	$	293,971	$	285,879
Other Assets	252,804		256,144
Current Liabilities	167,964		142,927
Long-term Debt	49,350		49,241
Members’ Equity	329,461		349,855
	Three Months Ended December 31,
Income Statement	2015		2014
Revenue	$	184,049	$	221,543
Gross Profit	21,795		49,229
Net Income	17,520		44,036

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

	Three Months Ended January 31,
Equity in Net Income	2016		2015
Absolute Energy	$	550	$	1,244
Guardian Energy	1,368		1,367
Homeland Energy Solutions	405		990
Other	44		(44		)
Total	$	2,367	$	3,557

During the three months ended January 31, 2016, Guardian Energy made distributions in excess of the equity balance recorded by the Company. The excess distribution was approximately $961,000 and is recorded as part of income for the three months ended January 31, 2016. The following table shows the condensed financial information of Guardian Energy, which represents greater than 10% of the net income during certain periods presented.

Guardian Energy Condensed Financial Information
Balance Sheet	12/31/2015		9/30/2015
Current Assets	$	25,126	$	23,053
Other Assets	46,000		47,653
Current Liabilities	11,707		7,918
Long-term Debt	49,000		49,000
Members’ Equity	10,419		13,788
	Three Months Ended
Income Statement	12/31/2015		12/31/2014
Revenue	$	52,137	$	65,001
Gross Profit	7,290		16,354
Net Income	3,881		12,924

The following table (in 000's) shows the condensed financial information of Homeland Energy Solutions. The Company's equitable portion of assets of Homeland Energy Solutions is greater than than 10% of the Company's assets for certain periods presented:

Homeland Energy Solutions Condensed Financial Information
Balance Sheet	12/31/2015		9/30/2015
Current Assets	$	76,604	$	80,156
Other Assets	110,388		109,910
Current Liabilities	37,661		36,118
Long-term Debt	350		241
Members’ Equity	148,980		153,707
	Three Months Ended
Income Statement	12/31/2015		12/31/2014
Revenue	$	68,246	$	77,648
Gross Profit	59,872		13,887
Net Income	4,961		12,528

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Summary of Significant Accounting Policies Production (Details) gal in Millions	3 Months Ended
	Jan. 31, 2016 gal
Product Information [Line Items]
Equity Method Investments, Number of Entities	5
Ethanol [Member]
Product Information [Line Items]
Annual Production Capacity	110

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Summary of Significant Accounting Policies Marketable Securities (Details) - USD ($)	3 Months Ended
	Jan. 31, 2016	Jan. 31, 2015	Oct. 31, 2015
Schedule of Held-to-maturity Securities [Line Items]
Marketable Securities, Realized Gain (Loss)	$ 99,000
Marketable Securities, Unrealized Gain (Loss)		$ 83,000
Mutual Fund [Member] | Original Cost [Member]
Schedule of Held-to-maturity Securities [Line Items]
Held-to-maturity Securities, Current	7,812,000		$ 6,257,000
Fair Value, Measurements, Recurring [Member] | Mutual Fund [Member]
Schedule of Held-to-maturity Securities [Line Items]
Held-to-maturity Securities, Current	7,841,000		6,241,000
Fair Value, Measurements, Recurring [Member] | Certificates of Deposit [Member]
Schedule of Held-to-maturity Securities [Line Items]
Held-to-maturity Securities, Current	$ 5,500,000		$ 7,000,000

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Property and Equipment (Details) - Property, Plant and Equipment [Member]	3 Months Ended
	Jan. 31, 2016
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

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Concentration Risk (Details)	3 Months Ended
	Jan. 31, 2016
Sales Revenue, Product Line [Member] | Ethanol [Member]
Concentration Risk [Line Items]
Concentration Risk, Percentage	80.00%
Sales Revenue, Product Line [Member] | Distillers Grains [Member]
Concentration Risk [Line Items]
Concentration Risk, Percentage	16.00%
Sales Revenue, Product Line [Member] | Corn Oil [Member]
Concentration Risk [Line Items]
Concentration Risk, Percentage	4.00%
Cost of Goods, Total [Member] | Corn [Member]
Concentration Risk [Line Items]
Concentration Risk, Percentage	81.00%

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Inventory (Details) - USD ($)	Jan. 31, 2016	Oct. 31, 2015
Inventory [Abstract]
Raw Materials	$ 4,015,687	$ 4,032,244
Work in Process	1,157,341	1,208,661
Finished Goods	2,886,471	1,625,600
Inventory	$ 8,059,499	$ 6,866,505

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Bank Financing Long Term Debt (Details) - Farm Credit Services of America [Member] - USD ($)	Jan. 31, 2016	Oct. 31, 2015
Debt Instrument [Line Items]
Debt Instrument, Face Amount	$ 35,000,000
Debt Instrument, Interest Rate, Stated Percentage	3.15%
Debt Instrument, Interest Rate at Period End	3.58%
Long-term Debt	$ 0	$ 0
Debt Instrument, Unused Borrowing Capacity, Amount	$ 10,000,000

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Related Party Transactions (Details) - Director [Member] - USD ($)	3 Months Ended
	Jan. 31, 2016	Jan. 31, 2015	Oct. 31, 2015
Related Party Transaction [Line Items]
Related Party Transaction, Purchases from Related Party	$ 24,260,000	$ 18,984,000
Related Party Transaction, Due from (to) Related Party	$ 839,000		$ 666,000

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Commitments, Contingencies and Agreements (Details) - Investee [Member] - USD ($) $ in Thousands	3 Months Ended
	Jan. 31, 2016	Jan. 31, 2015	Oct. 31, 2015
Related Party Transaction [Line Items]
Revenue from Related Parties	$ 48,873	$ 61,081
Related Party Transaction, Expenses from Transactions with Related Party	100	$ 89
Related Party Transaction, Due from (to) Related Party	$ 3,836		$ 2,717

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Risk Management Derivative Instruments - Income Statement (Details) - Not Designated as Hedging Instrument [Member] - Commodity Contract [Member] - USD ($)	3 Months Ended
	Jan. 31, 2016	Jan. 31, 2015
Derivative Instruments, Gain (Loss) [Line Items]
Derivative Instruments, Realized Gain (Loss) Recognized in Income, Net	$ 382,000	$ 327,000
Derivative Instruments, Unrealized Gain (Loss) Recognized in Income, Net	217,000	115,000
Derivative Instruments, Gain (Loss) Recognized in Income, Net	599,000	442,000
Sales [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Derivative Instruments, Realized Gain (Loss) Recognized in Income, Net	0	141,000
Derivative Instruments, Unrealized Gain (Loss) Recognized in Income, Net	0	(85,000)
Derivative Instruments, Gain (Loss) Recognized in Income, Net	0	56,000
Cost of Sales [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Derivative Instruments, Realized Gain (Loss) Recognized in Income, Net	382,000	186,000
Derivative Instruments, Unrealized Gain (Loss) Recognized in Income, Net	217,000	200,000
Derivative Instruments, Gain (Loss) Recognized in Income, Net	$ 599,000	$ 386,000

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Risk Management Derivative Instruments - Balance Sheet Location (Details) - USD ($)	Jan. 31, 2016	Oct. 31, 2015
Derivatives, Fair Value [Line Items]
Derivative Instruments and Hedges, Assets	$ 452,083	$ 879,332
Fair Value, Measurements, Recurring [Member] | Commodity Contract [Member] | Liability [Member]
Derivatives, Fair Value [Line Items]
Derivative Liabilities, Current	(241,000)	(237,000)
Fair Value, Measurements, Recurring [Member] | Commodity Contract [Member] | Other Current Assets [Member]
Derivatives, Fair Value [Line Items]
Derivative Assets, Current	278,000	58,000
Good Faith and Margin Deposits with Broker-Dealers	415,000	1,058,000
Derivative Instruments and Hedges, Assets	$ 452,000	$ 879,000

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Risk Management Long Term Purchase Commitments (Details)	3 Months Ended
	Jan. 31, 2016 USD ($) bu	Oct. 31, 2015 USD ($) bu
Priced Later [Member] | Corn [Member]
Long-term Purchase Commitment [Line Items]
Investment Contract Volume | bu	36,000	197,000
Investment in Physical Commodities, Fair Value Disclosure	$ 126,000	$ 705,000
Fixed Price [Member] | Corn Oil [Member]
Long-term Purchase Commitment [Line Items]
Supply Commitment, Remaining Minimum Amount Committed	1,033,000
Fixed Price [Member] | Distillers Grains [Member]
Long-term Purchase Commitment [Line Items]
Supply Commitment, Remaining Minimum Amount Committed	2,528,000
Fixed Price [Member] | Corn [Member]
Long-term Purchase Commitment [Line Items]
Purchase Commitment, Remaining Minimum Amount Committed	3,233,000
Basis Contract [Member] | Corn [Member]
Long-term Purchase Commitment [Line Items]
Purchase Commitment, Remaining Minimum Amount Committed	18,585,000
Forward Contracts [Member] | Natural Gas [Member]
Long-term Purchase Commitment [Line Items]
Purchase Commitment, Remaining Minimum Amount Committed	396,000
Affiliated Entity [Member]
Related Party Transaction [Line Items]
Purchase Obligation	$ 11,715,000
Forward Contracts [Member] | Ethanol [Member]
Long-term Purchase Commitment [Line Items]
Product usage, percentage	0.00%
Forward Contracts [Member] | Natural Gas [Member]
Long-term Purchase Commitment [Line Items]
Product usage, percentage	16.00%
Forward Contracts [Member] | Corn [Member]
Long-term Purchase Commitment [Line Items]
Product usage, percentage	9.00%

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Fair Value Measurements (Details) - Commodity Contract [Member] - Fair Value, Measurements, Recurring [Member] - USD ($)	Jan. 31, 2016	Oct. 31, 2015
Other Current Assets [Member]
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items]
Marketable Securities	$ 7,841,000	$ 6,241,000
Derivative Asset, Current	278,000	58,000
Other Current Assets [Member] | Fair Value, Inputs, Level 1 [Member]
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items]
Marketable Securities	7,841,000	6,241,000
Derivative Asset, Current	260,000	33,000
Other Current Assets [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items]
Marketable Securities	0	0
Derivative Asset, Current	18,000	25,000
Other Current Assets [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items]
Marketable Securities	0	0
Derivative Asset, Current	0	0
Liability [Member]
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items]
Derivative Liability, Current	(241,000)	(237,000)
Liability [Member] | Fair Value, Inputs, Level 1 [Member]
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items]
Derivative Liability, Current	(109,000)	(85,000)
Liability [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items]
Derivative Liability, Current	(132,000)	(152,000)
Liability [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items]
Derivative Liability, Current	$ 0	$ 0

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Investments (Details) - USD ($)	3 Months Ended
	Jan. 31, 2016	Dec. 31, 2015	Jan. 31, 2015	Dec. 31, 2014	Oct. 31, 2015	Mar. 31, 2015
Schedule of Equity Method Investments [Line Items]
Proceeds from Equity Method Investment, Dividends or Distributions	$ 1,298,325		$ 6,905,817
Equity Method Investment, Net Income	2,367,000		3,557,000
Equity Method Investee [Member]
Schedule of Equity Method Investments [Line Items]
Equity Method Investment, Current Assets					$ 285,879,000	$ 293,971,000
Equity Method Investment, Other Assets					256,144,000	252,804,000
Equity Method Investment, Current Liabilities					142,927,000	167,964,000
Equity Method Investment, Long-term Debt					49,241,000	49,350,000
Equity Method Investment, Members' Equity					349,855,000	329,461,000
Equity Method Investment, Revenue	184,049,000		221,543,000
Equity Method Investment, Gross Profit	21,795,000		49,229,000
Equity Method Investment, Summarized Financial Information, Net Income (Loss)	17,520,000		44,036,000
Absolute Energy [Member]
Schedule of Equity Method Investments [Line Items]
Equity Method Investment, Net Income	550,000		1,244,000
Guardian Energy [Member]
Schedule of Equity Method Investments [Line Items]
Proceeds from Equity Method Investment, Dividends or Distributions	961,000
Equity Method Investment, Current Assets					23,053,000	25,126,000
Equity Method Investment, Other Assets					47,653,000	46,000,000
Equity Method Investment, Current Liabilities					7,918,000	11,707,000
Equity Method Investment, Long-term Debt					49,000,000	49,000,000
Equity Method Investment, Members' Equity					$ 13,788,000	10,419,000
Equity Method Investment, Revenue	52,137,000		65,001,000
Equity Method Investment, Gross Profit	7,290,000		16,354,000
Equity Method Investment, Summarized Financial Information, Net Income (Loss)	3,881,000		12,924,000
Equity Method Investment, Net Income	1,368,000		1,367,000
Homeland Energy Solutions [Member]
Schedule of Equity Method Investments [Line Items]
Equity Method Investment, Current Assets		$ 76,604,000				80,156,000
Equity Method Investment, Other Assets		110,388,000				109,910,000
Equity Method Investment, Current Liabilities		37,661,000				36,118,000
Equity Method Investment, Long-term Debt		350,000				241,000
Equity Method Investment, Members' Equity		148,980,000				$ 153,707,000
Equity Method Investment, Revenue		68,246,000		$ 77,648,000
Equity Method Investment, Gross Profit		59,872,000		13,887,000
Equity Method Investment, Summarized Financial Information, Net Income (Loss)		$ 4,961,000		$ 12,528,000
Equity Method Investment, Net Income	405,000		990,000
Other Investee [Member]
Schedule of Equity Method Investments [Line Items]
Equity Method Investment, Net Income	$ 44,000		$ (44,000)