10-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-K

x	Annual report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934.
For the fiscal year ended		December 31, 2013
o	Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934.
Commission file number 000-53202

HOMELAND ENERGY SOLUTIONS, LLC
(Exact name of registrant as specified in its charter)
Iowa	20-3919356
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
2779 Highway 24, Lawler, Iowa	52154
(Address of principal executive offices)	(Zip Code)
(563) 238-5555
(Registrant's telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act: None
Securities registered pursuant to Section 12(g) of the Act: Membership Units

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.

o Yes x No

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.

o Yes x No

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 Website, 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 if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K (§229.405 of this chapter) is not contained herein, and will not be contained, to the best of registrant's knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. x

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
(Do not check if a smaller reporting company)

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). o Yes x No

As of June 30, 2013, the aggregate market value of the membership units held by non-affiliates (computed by reference to the most recent offering price of membership units) was $56,777,000.

As of February 27, 2014, there were 90,445 membership units outstanding. On June 13, 2013, the Company entered into an agreement with Steve Retterath, the Company's largest equity holder, to repurchase and retire all of the units owned by Mr. Retterath. The Company agreed to repurchase and retire 25,860 membership units owned by Mr. Retterath in exchange for $30 million. The Company believes that it has a binding agreement with Mr. Retterath. Mr. Retterath contends he is not bound by the agreement.  The Company's position is as of the closing date, Mr. Retterath is no longer the equitable owner of any membership units in the Company. As a result, the Company has recorded a $30 million short-term liability related to the amount the Company agreed to pay Mr. Retterath to repurchase his membership units and has correspondingly reduced members' equity on our balance sheet. The 90,445 membership units outstanding include the contested membership units the Company agreed to repurchase from Mr. Retterath.

DOCUMENTS INCORPORATED BY REFERENCE

The registrant has incorporated by reference into Part III of this Annual Report on Form 10-K portions of its definitive proxy statement to be filed with the Securities and Exchange Commission within 120 days after the close of the fiscal year covered by this Annual Report.

INDEX

	Page No.
Part I	3
Item 1. Business	3
Item 1A. Risk Factors	12
Item 2. Properties	16
Item 3. Legal Proceedings	17
Item 4. Mine Safety Disclosures	17
Part II	18
Item 5. Market for Registrant's Common Equity, Related Member Matters and Issuer Purchases of Equity Securities	18
Item 6. Selected Financial Data	20
Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations	21
Item 7A. Quantitative and Qualitative Disclosures About Market Risk	29
Item 8. Financial Statements and Supplementary Data	31
Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure	46
Item 9A. Controls and Procedures	46
Item 9B. Other Information	47
Part III	47
Item 10. Directors, Executive Officers and Corporate Governance	47
Item 11. Executive Compensation	47
Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Member Matters	47
Item 13. Certain Relationships and Related Transactions, and Director Independence	47
Item 14. Principal Accounting Fees and Services	47
Part IV	47
Item 15. Exhibits, Financial Statement Schedules	48
Signatures	51

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PART I

CAUTIONARY STATEMENTS REGARDING FORWARD-LOOKING STATEMENTS

This annual report contains historical information, as well as forward-looking statements that involve known and unknown risks and relate to future events, our future financial performance, or our expected future operations and actions. In some cases, you can identify forward-looking statements by terminology such as "may," "will," "should," "expect," "plan," "anticipate," "believe," "estimate," "future," "intend," "could," "hope," "predict," "target," "potential," or "continue" or the negative of these terms or other similar expressions. These forward-looking statements are only our predictions based on current information and involve numerous assumptions, risks and uncertainties. Our actual results or actions may differ materially from these forward-looking statements for many reasons, including the reasons described in this report. While it is impossible to identify all such factors, factors that could cause actual results to differ materially from those estimated by us include:

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

• Reductions in the ethanol use requirement in the Federal Renewable Fuels Standard;

• Decreases in the market price of ethanol, distiller grains and corn oil;

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

• Our ability to continue to satisfy the financial covenants contained in our credit agreements with our lender;

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

• Our ability to generate sufficient liquidity to fund our operations, debt service requirements and capital expenditures;

• The results of our hedging transactions and other risk management strategies;

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

• Changes in environmental regulations or in our ability to comply with the environmental regulations that apply to our plant site and our operations;

• Changes in or elimination of federal and/or state laws having an impact on the ethanol industry;

• Overcapacity within the ethanol industry;

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

• Changes and advances in ethanol production technology that may make it more difficult for us to compete with other ethanol plants utilizing such technology;

• Our reliance on key management personnel; and

• Competition in the ethanol industry from alternative fuels.

The cautionary statements referred to in this section also should be considered in connection with any subsequent written or oral forward-looking statements that may be issued by us or any persons acting on our behalf. We undertake no duty to update these forward-looking statements, even though our situation may change in the future. Furthermore, we cannot guarantee future results, events, 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 by these cautionary statements.

AVAILABLE INFORMATION

Information about us is also available on our website at www.homelandenergysolutions.com, under "Investor Relations - SEC Filings," which includes links to reports we have filed with the Securities and Exchange Commission. The contents of our website are not incorporated by reference in this Annual Report on Form 10-K.

ITEM 1.BUSINESS.

Business Development

Homeland Energy Solutions, LLC (referred to herein as "we," "us," the "Company," "Homeland" or "Homeland Energy Solutions") is an Iowa limited liability company. We were formed on December 7, 2005 to build and operate a 100 million gallon per year ethanol plant located near Lawler, Iowa. The primary products produced at the plant are ethanol, distiller grains and corn oil. We commenced production on April 4, 2009. The ethanol plant is currently operating at a rate in excess of its nameplate production capacity of 100 million gallons of ethanol per year.

On June 13, 2013, we entered into an agreement with Steve Retterath, our largest member, to repurchase and retire all of the units owned by Mr. Retterath. We agreed to close on this repurchase on or before August 1, 2013. We agreed to repurchase

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and retire the 25,860 membership units owned by Mr. Retterath in exchange for $30 million, to be paid in two equal installments payable at closing and on July 1, 2014. The transaction failed to close by the scheduled date due to objections by Mr. Retterath. The Company believes that it has a binding agreement with Mr. Retterath. On August 14, 2013, we filed a lawsuit against Mr. Retterath in Iowa to enforce the terms of the repurchase agreement. We are asking the Iowa court to require Mr. Retterath to complete the repurchase agreement pursuant to its terms.

Mr. Retterath contends he is not bound by the agreement.  The Company's position is as of the closing date, Mr. Retterath is no longer the equitable owner of any membership units in the Company. As a result, the Company has recorded a $30 million short-term liability related to the amount the Company agreed to pay Mr. Retterath to repurchase his membership units and has correspondingly reduced members' equity on our balance sheet. If the Company is ultimately unsuccessful in its lawsuit against Mr. Retterath, the Company will reevaluate the accounting considerations made during the period of time that the lawsuit is pending.

On the scheduled closing date for the repurchase agreement , Mr. Retterath sued the Company along with several directors, our CEO, CFO, Plant Manager, a former director and our outside legal counsel in Florida state court. This lawsuit was subsequently removed to federal court in the State of Florida. Details of both the Company's lawsuit against Mr. Retterath and Mr. Retterath's lawsuit are provided below in the section entitled "PART II - Item 1. Legal Proceedings."

We recently completed construction of our new grain storage bin. The new grain storage bin was placed into service during our annual maintenance shutdown which occurred in August 2013.

On February 24, 2014, we executed amended loan agreements with our primary lender, Home Federal Savings Bank ("Home Federal"), pursuant to which Home Federal loaned us $15 million. The $15 million loan is structured as a term loan with a maturity date of March 1, 2019. The purpose of this term loan is to offset our liability associated with the Retterath Repurchase Agreement discussed above. The proceeds of this loan will be placed in a separate account which will be used to fund the first payment due to Mr. Retterath pursuant to the Retterath Repurchase Agreement. Interest accrues on the term loan at an annual rate of 310 basis points in excess of the one month London Interbank Offered Rate (LIBOR), adjusted monthly. We agreed to make monthly payments pursuant to the term loan of approximately $250,000 plus interest.

Financial Information

Please refer to "Item 7 - Management's Discussion and Analysis of Financial Condition and Results of Operations" for information about our revenue, profit and loss measurements and total assets and liabilities and "Item 8 - Financial Statements and Supplementary Data" for our financial statements and supplementary data.

Principal Products

The principal products that we produce are ethanol, distiller grains and corn oil. We did not commence production of corn oil until the fourth quarter of our 2011 fiscal year. Therefore, our corn oil revenue during our 2011 fiscal year is not indicative of what we expect for an entire year. The table below shows the approximate percentage of our total revenue which is attributed to each of our primary products for each of our last three fiscal years.

Product	Fiscal Year 2013		Fiscal Year 2012		Fiscal Year 2011
Ethanol	76	%	77	%	82	%
Distiller Grains	21	%	20	%	17	%
Corn Oil	3	%	3	%	1	%

Ethanol

Ethanol is ethyl alcohol, a fuel component made primarily from corn and various other grains. Ethanol is primarily used as: (i) an octane enhancer in fuels; (ii) an oxygenated fuel additive for the purpose of reducing ozone and carbon monoxide vehicle emissions; and (iii) a non-petroleum-based gasoline substitute. Ethanol produced in the United States is primarily used for blending with unleaded gasoline and other fuel products. Ethanol blended fuel is typically designated in the marketplace according to the percentage of the fuel that is ethanol, with the most common fuel blend being E10, which includes 10% ethanol. The United States Environmental Protection Agency ("EPA") has approved the use of gasoline blends that contain 15% ethanol, or E15, for use in all vehicles manufactured in model year 2001 and later. In addition, flexible fuel vehicles can use gasoline blends that contain up to 85% ethanol called E85.

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Our ethanol plant uses corn as the feedstock in the ethanol production process. A corn-based ethanol plant is essentially a fermentation plant. Ground corn and water are mixed with enzymes and yeast to produce a substance called "beer," which contains approximately 15% alcohol, 11% solids and 74% water. The beer is boiled to separate the water, resulting in ethyl alcohol, which is then dehydrated to increase the alcohol content. This product is then mixed with a certified denaturant, such as gasoline, to make the product unfit for human consumption which allows it to be sold commercially.

Distiller Grains

The principal co-product of the ethanol production process is distiller grains, a high protein, high-energy animal feed supplement primarily marketed to the dairy and beef industry. We produce two forms of distiller grains: Modified/Wet Distiller Grains ("MWDG") and Distiller Dried Grains with Solubles ("DDGS"). MWDG is processed corn mash that has been dried to approximately 50% moisture. MWDG has a shelf life of approximately seven days and is often sold to nearby markets. DDGS is processed corn mash that has been dried to approximately 10% moisture. It has a longer shelf life and may be sold and shipped to any market, regardless of its vicinity to our ethanol plant. We market nearly all of our distiller grains as DDGS.

Corn Oil

In October 2011, we commenced operating our corn oil extraction equipment. The corn oil extraction equipment we installed allows us to remove some of the corn oil contained in our distiller grains and sell the corn oil separately. The corn oil that we are capable of producing is not food grade corn-oil and it cannot be used for human consumption. The primary uses of the corn oil that we produce are for animal feed, industrial uses and biodiesel production.

Principal Product Markets

Ethanol

The primary market for our ethanol is the domestic fuel blending market. In recent years the United States has experienced increased ethanol exports. This increase in ethanol exports follows a conscious effort by the United States ethanol industry to expand ethanol exports. These efforts are continuing and may lead to further increases in ethanol exports. The increase in ethanol exports along with lower ethanol imports has contributed to improved operating margins in the United States and has prevented excess ethanol supplies in the domestic market. However, due to our location, we do not anticipate a significant amount of the ethanol we produce will be exported.

In 2011, the European Union launched anti-dumping and anti-subsidy investigations related to ethanol exports from the United States. In August 2012, the European Union concluded the anti-subsidy investigation and decided not to impose a tariff related to the anti-subsidy portion of the investigation due to the fact that the VEETC blenders credit had expired. However, the European Union decided to impose a tariff on ethanol imported from the United States based on the anti-dumping portion of the investigation. While this tariff has negatively impacted ethanol exports to the European Union, other countries have increased their ethanol imports.

Ethanol is generally blended with gasoline before it is sold to the end consumer. Therefore, the primary purchasers of ethanol are fuel blending companies who mix the ethanol we produce with gasoline. As discussed below in the section entitled "Distribution of Principal Products," we have a third party marketer that sells all of our ethanol. Our ethanol marketer makes substantially all decisions regarding where our ethanol is sold.

Distillers Grains

Distillers grains are primarily used as animal feed. Distillers grains are typically fed to animals instead of other traditional animal feeds such as corn and soybean meal. Distillers grains exports have increased in recent years as distillers grains have become a more accepted animal feed. The primary export markets for distillers grains are China, Mexico, Turkey and various Pacific Rim countries. However, the distillers grains market in China has recently become uncertain due to the fact that China has been rejecting loads of corn which contain a specific gene which has not been approved in China. This has led China to reject loads of distillers grains made from corn which contains this gene. China has not been uniform in its rejections, allowing some distillers grains shipments into the country. These rejections by China have negatively impacted distillers grains prices and have led to uncertainty regarding future exports of distillers grains to China.

Despite the recent increases in distillers grains exports, we anticipate that the majority of our distillers grains will continue to be sold in the domestic market due to our plant's location.

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Corn Oil

The primary markets for corn oil are the industrial chemicals market, animal feeding market and the biodiesel production market. Domestic corn oil supplies have been increasing in recent years at a time when demand has been relatively stable which has resulted in decreasing corn oil prices. The market for corn oil is expected to continue to shift as changes in supply and demand of corn oil interact. Our corn oil is primarily marketed in the United States and we do not expect that significant exports of corn oil will occur in the near future.

Distribution of Principal Products

We have hired third party marketers who are responsible for the distribution of all of the products we produce. Below is a description of the arrangements we have with our ethanol, distiller grains and corn oil marketers.

Ethanol Distribution

We have an ethanol marketing agreement with Renewable Products Marketing Group, Inc. ("RPMG"), a professional third party marketer, which is the sole marketer of our ethanol. RPMG also markets all of our corn oil. We are an equity owner of RPMG, LLC ("RPMG, LLC"), the parent company of RPMG, which allows us to realize favorable marketing fees and transparency in the sale of our ethanol and corn oil. Our ethanol marketing agreement provides we can sell our ethanol either through an index arrangement or at a fixed price agreed to between us and RPMG. The term of the ethanol marketing agreement is perpetual, until it is terminated. The primary reasons the ethanol marketing agreement would terminate are if we cease to be an owner of RPMG, LLC, if there is a breach of the ethanol marketing agreement which is not cured, or if we give advance notice to RPMG that we wish to terminate the ethanol marketing agreement. Notwithstanding our right to terminate the ethanol marketing agreement, we may be obligated to continue to market our ethanol through RPMG for a period of time after the termination. Further, following the termination, we would accept an assignment of certain railcar leases which RPMG has secured to service our ethanol sales. If our ethanol marketing agreement is terminated, it would trigger a redemption by RPMG, LLC of our ownership interest in RPMG, LLC.

Distiller Grains Distribution

We have a Distiller Grains Marketing Agreement with CHS, Inc. ("CHS"), pursuant to which CHS agreed to purchase all of the distiller grains produced at our plant. The initial term of the distiller grains marketing agreement was one year, beginning with the start-up of operations and production at the plant. After the initial one-year term, the agreement automatically renews for successive one year terms unless either party gives 90 days written notice of termination before the current term expires.

CHS agreed to pay us 98% of the actual sale price received by CHS from its customers for DDGS sold and 96% of the actual sale price received by CHS for MWDG sold, subject to certain minimum and maximum fees per ton. CHS deducts the customary freight costs incurred by CHS in delivering the distiller grains to its customers from our portion of the distiller grains sale price.

Corn Oil Distribution

In July 2011, we entered into a Corn Oil Marketing Agreement with RPMG. We have an exclusive marketing arrangement with RPMG where it will market all of the corn oil that we produce. We agreed to pay RPMG a commission based on each pound of corn oil that RPMG sells on our behalf. We also agreed to pay certain costs associated with RPMG marketing our corn oil. The initial term of the corn oil marketing agreement is for one year and the agreement automatically renews for additional one year terms unless written notice is given, either by us or RPMG, at least ninety days prior to the expiration of the current term of the agreement.

New Products and Services

We did not introduce any new products or services during our 2013 fiscal year.

Competition

We are in direct competition with numerous ethanol producers in the sale of our products and with respect to raw material purchases related to those products. Many of the ethanol producers with which we compete have greater resources than we do. While management believes we are a lower cost producer of ethanol, larger ethanol producers may be able to take advantage of

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economies of scale due to their larger size and increased bargaining power with both ethanol, distiller grains and corn oil customers and raw material suppliers. As of February 10, 2014, the Renewable Fuels Association estimates that there are 211 ethanol production facilities in the United States with capacity to produce approximately 14.9 billion gallons of ethanol per year. According to RFA estimates, approximately 7% of the ethanol production capacity in the United States was not operating as of February 10, 2014. The largest ethanol producers include Archer Daniels Midland, Flint Hills Resources, Green Plains Renewable Energy, POET, and Valero Renewable Fuels, each of which are capable of producing significantly more ethanol than we produce.

The following table identifies the largest ethanol producers in the United States along with their production capacities.

U.S. FUEL ETHANOL PRODUCTION CAPACITY

BY TOP PRODUCERS

Producers of Approximately 600

million gallons per year (MMgy) or more

Company	Current Capacity (MMgy)	Under Construction/Expansions (MMgy)	Percent of Market
Archer Daniels Midland	1,720	—	12	%
POET Biorefining	1,629	—	11	%
Valero Renewable Fuels	1,130	—	8	%
Green Plains Renewable Energy	1,004	—	7	%
Flint Hills Resources	660	—	4	%

Updated: February 10, 2014

The products that we produce are commodities. Since our products are commodities, there are typically no significant differences between the products we produce and the products of our competitors that would allow us to distinguish our products in the market. As a result, competition in the ethanol industry is primarily based on price and consistent quality.

We have experienced increased competition from oil companies which have started purchasing ethanol production facilities. These oil companies are required to blend a certain amount of ethanol each year. Therefore, the oil companies may be able to operate their ethanol production facilities at times when it is unprofitable for us to operate our ethanol plant. Further, some ethanol producers own multiple ethanol plants which may allow them to compete more effectively by providing them flexibility to run certain production facilities while they have other facilities shut down. Finally some ethanol producers who own ethanol plants in geographically diverse areas of the United States may spread the risk they encounter related to feedstock prices due to localized corn shortages or poor growing conditions.

The ethanol industry in the United States experienced increased competition from ethanol produced outside of the United States during 2012. These increased ethanol imports were likely the result of the expiration of the tariff on imported ethanol on December 31, 2011, along with higher ethanol prices during 2012. While the United States imported significantly less ethanol during 2013, it is possible that market conditions may result in increased ethanol imports in the future which could impact demand for domestically produced ethanol.

We anticipate increased competition from renewable fuels that do not use corn as the feedstock. Many of the current ethanol production incentives are designed to encourage the production of renewable fuels using raw materials other than corn. One type of ethanol production feedstock that is being explored is cellulose. Cellulose is the main component of plant cell walls and is the most common organic compound on earth. Cellulose is found in wood chips, corn stalks, rice straw, amongst other common plants. Cellulosic ethanol is ethanol produced from cellulose. There are several commercial scale cellulosic ethanol production facilities in the construction phase which may be completed during 2014. If this technology can be profitably employed on a commercial scale, it could potentially lead to ethanol that is less expensive to produce than corn based ethanol, especially when corn prices are high. Cellulosic ethanol may also capture more government subsidies and assistance than corn based ethanol. This could decrease demand for our product or result in competitive disadvantages for our ethanol production process.

A number of automotive, industrial and power generation manufacturers are developing alternative clean power systems using fuel cells, plug-in hybrids, electric cars or clean burning gaseous fuels. Electric car technology has recently grown in popularity, especially in urban areas. While there are currently a limited number of vehicle recharging stations, making electric cars not feasible for all consumers, there has been increased focus on developing these recharging stations to make electric car technology more widely available in the future. Additional competition from these other sources of alternative energy, particularly in the automobile market, could reduce the demand for ethanol, which would negatively impact our profitability.

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Distiller Grains Competition

Our ethanol plant competes with other ethanol producers in the production and sales of distiller grains. Distiller grains are primarily used as an animal feed which replaces corn and soybean meal. As a result, we believe that distiller grains prices are positively impacted by increases in corn and soybean prices. In addition, in recent years the United States ethanol industry has increased exports of distiller grains which management believes has positively impacted demand and prices for distiller grains in the United States. In the event these distiller grains exports decrease, it could lead to an oversupply of distiller grains in the United States which could result in increased competition among ethanol producers for sales of distiller grains and could negatively impact distiller grains prices in the United States.

Sources and Availability of Raw Materials

Corn Supply

The major raw material required to produce ethanol, distiller grains and corn oil at our plant is corn. The ethanol plant is currently operating at a rate in excess of its nameplate capacity. We anticipate that we will require approximately 46 million bushels of corn per year to produce approximately 133 million gallons of ethanol per year. We buy as much corn as possible from local grain elevators and farmers. Our commodities manager is responsible for purchasing corn for our operations, scheduling corn deliveries and establishing hedging positions to protect the price we pay for corn.

During 2013, the United States harvested a record number of bushels of corn. This large corn crop resulted in a significant decrease in corn prices during our fourth fiscal quarter of 2013 and management anticipates that corn prices will remain lower during our 2014 fiscal year. However, the area surrounding our plant experienced unfavorable weather conditions during the planting season in 2013 which resulted in a significant number of acres of corn which were not planted. As a result of these localized poor weather conditions, we may be required to secure corn from outside of our usual corn supply area which may increase the price we pay for corn during our 2014 fiscal year. Management believes that we will be able to secure the corn we require but we may be required to pay higher basis prices in order to attract the corn we need.

Commodities Account

In an attempt to minimize the effects of the volatility of corn costs on our profitability, we have two commodities trading accounts with ADM Investor Services, Inc. ("ADMIS"). In addition, we have a commodities manager who manages our corn procurement activities. ADMIS serves as our broker for the purchase and sale of commodity futures contracts for corn, and enters into transactions and exercises commodity options for our account in accordance with our instructions. We are required to maintain adequate margins in our accounts, and if we do not maintain adequate margins, ADMIS may close out any of our positions or transfer funds from our other accounts to cover the margin.

The effectiveness of our risk management strategy is dependent on the cost of corn and our ability to sell sufficient ethanol to use all of the corn for which we have futures contracts. Our risk management activities may not be successful in reducing the risk caused by price fluctuation, which may leave us vulnerable to high corn prices.

Utilities

We entered into an agreement with Northern Natural Gas in April 2008 for connection to its interstate pipeline and for transportation services for our natural gas supply. To access sufficient supplies of natural gas to operate the plant, a dedicated lateral pipeline from Northern Natural Gas's interstate pipeline has been constructed to service our plant. Construction of the natural gas lateral pipeline was completed prior to the commencement of our operations at the ethanol plant. We purchase our natural gas through various suppliers.

We entered into an Energy Management Services Agreement with U.S. Energy dated July 10, 2009. Pursuant to the agreement, U.S. Energy assists us with electric energy and natural gas management and procurement. U.S. Energy's responsibilities include administration of our gas supply contracts, nomination, scheduling and other logistical issues such as storage and transportation, negotiation and delivery. We work with U.S. Energy to provide estimated usage volumes on a monthly basis. In exchange for these management services, we pay a monthly service fee, as well as pre-approved expenses in connection with the services. The agreement for these services continues on a month to month basis.

On March 6, 2009, we entered into an Electrical Services Agreement with Hawkeye Tri-County Electric Cooperative (Hawkeye), to supply all of the electricity necessary to operate the ethanol plant. Pursuant to the agreement, Hawkeye has installed

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the electrical facilities necessary to deliver all of the electric power and energy required to operate our ethanol plant. The agreement with Hawkeye will remain in effect for ten years from the date we began processing ethanol at the plant (April 2009), and will terminate on the tenth anniversary of that date (April 2019). We may continue to receive the service following expiration of the ten-year term for a minimum of two years. Either party will then have the right to terminate the agreement upon six months' written notice.

Seasonality of Sales

We experience some seasonality of demand for our ethanol, distiller grains and corn oil. Since ethanol is predominantly blended with gasoline for use in automobiles, ethanol demand tends to shift in relation to gasoline demand. As a result, we experience some seasonality of demand for ethanol in the summer months related to increased driving and, as a result, increased gasoline demand. In addition, we experience some increased ethanol demand during holiday seasons related to increased gasoline demand. We also experience decreased distiller grains demand during the summer months due to natural depletion in the size of herds at cattle feed lots and when the animals are turned out to pasture or are slaughtered. Further, we expect some seasonality of demand for our corn oil since a major corn oil user is the biodiesel industry which typically reduces production during the winter months.

Working Capital

We primarily use our working capital for purchases of raw materials necessary to operate the ethanol plant, for payments on our credit facilities, for distributions to our members and for capital expenditures to maintain and upgrade the ethanol plant. Our primary sources of working capital are income from our operations as well as our revolving line of credit with our primary lender, Home Federal. For our 2014 fiscal year, we do not have any major scheduled capital projects other than maintenance and repair activities at the ethanol plant. Management believes that our current sources of working capital are sufficient to sustain our operations for our 2014 fiscal year and beyond.

Dependence on One or a Few Major Customers

As discussed previously, we have exclusive marketing agreements with RPMG for sales of our ethanol and corn oil and with CHS for sales of our distiller grains. As a result, we rely on RPMG and CHS for the sale and distribution of all of our products. Any loss of RPMG or CHS as the marketing agent for our products could have a significant negative impact on our revenues. While we anticipate that we could secure other ethanol, distiller grains and corn oil marketers if necessary, any loss of our marketers could significantly impact our ability to operate the ethanol plant profitably.

Patents, Trademarks, Licenses, Franchises and Concessions

We do not currently hold any patents, trademarks, franchises or concessions. We were granted a perpetual and royalty free license by ICM to use certain ethanol production technology necessary to operate our ethanol plant. The cost of the license granted by ICM was included in the amount we paid to Fagen to design and build our ethanol plant.

Governmental Regulation and Federal Ethanol Supports

Federal Ethanol Supports

The ethanol industry is dependent on several incentives to produce ethanol, the most significant of which is the Federal Renewable Fuels Standard (the "RFS"). The RFS requires that in each year, a certain amount of renewable fuels must be used in the United States. The RFS is a national program that does not require that any renewable fuels be used in any particular area or state, allowing refiners to use renewable fuel blends in those areas where it is most cost-effective. Subject to the EPA's ability to reduce the RFS limits, which authority it appears the EPA will use this year as discussed below, the RFS requirement increases incrementally each year until the United States is required to use 36 billion gallons of renewable fuels by 2022. Starting in 2009, the RFS required that a portion of the RFS must be met by certain "advanced" renewable fuels. These advanced renewable fuels include ethanol that is not made from corn, such as cellulosic ethanol and biomass based biodiesel. The use of these advanced renewable fuels increases each year as a percentage of the total renewable fuels required to be used in the United States.

If the RFS were to be repealed or modified, ethanol demand may be significantly impacted. The RFS for 2013 was approximately 16.55 billion gallons, of which corn based ethanol could be used to satisfy approximately 13.8 billion gallons. The statutory volume requirement of the RFS for 2014 is approximately 18.15 billion gallons, of which corn based ethanol can be used to satisfy approximately 14.4 billion gallons. Recently, there have been proposals in Congress to reduce or eliminate the RFS. In addition, on November 15, 2013, the EPA announced a proposal to significantly reduce the RFS levels for 2014 from the statutory volume requirement of 18.15 billion gallons to 15.21 billion gallons and reduce the renewable volume obligations that can be

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satisfied by corn based ethanol from 14.4 billion gallons to 13 billion gallons. This proposal would also result in a lowering of the 2014 numbers below the 2013 level of 13.8 billion gallons. The EPA proposal was subject to a 60-day public comment period which expired on January 28, 2014. According to the RFS, the EPA only has authority to waive the requirements of the RFS, in whole or in part, provided one of two conditions are met. The conditions are: (1) there is inadequate domestic renewable fuel supply; or (2) implementation of the requirement would severely harm the economy or environment of a state, region or the United States. Many in the ethanol industry believe that neither of these two conditions have been met and therefore any complete or partial waiver of the RFS would be illegal. The EPA is also seeking comment on several petitions it has received for partial waiver of the statutory volumes for 2014. If the EPA's proposal becomes a final rule significantly reducing the RFS or if the RFS were to be otherwise reduced or eliminated by the exercise of the EPA waiver authority or by Congress, the market price and demand for ethanol will likely decrease which will negatively impact our financial performance. Current ethanol production capacity exceeds the EPA's proposed 2014 renewable volume obligation which can be satisfied by corn based ethanol by approximately 1.8 billion gallons.

In February 2010, the EPA issued new regulations governing the RFS. These new regulations have been called RFS2. The most controversial part of RFS2 involves what is commonly referred to as the lifecycle analysis of greenhouse gas emissions. Specifically, the EPA adopted rules to determine which renewable fuels provided sufficient reductions in greenhouse gases, compared to conventional gasoline, to qualify under the RFS program. RFS2 establishes a tiered approach, where regular renewable fuels are required to accomplish a 20% greenhouse gas reduction compared to gasoline, advanced biofuels and biomass-based biodiesel must accomplish a 50% reduction in greenhouse gases, and cellulosic biofuels must accomplish a 60% reduction in greenhouse gases. Any fuels that fail to meet this standard cannot be used by fuel blenders to satisfy their obligations under the RFS program. The scientific method of calculating these greenhouse gas reductions has been a contentious issue. Many in the ethanol industry were concerned that corn based ethanol would not meet the 20% greenhouse gas reduction requirement based on certain parts of the environmental impact model that many in the ethanol industry believe is scientifically suspect. However, RFS2 as adopted by the EPA provides that corn-based ethanol from modern ethanol production processes does meet the definition of a renewable fuel under the RFS program. Our ethanol plant was grandfathered into the RFS due to the fact that it was constructed prior to the effective date of the lifecycle greenhouse gas requirement and is not required to prove compliance with the lifecycle greenhouse gas reductions. Many in the ethanol industry are concerned that certain provisions of RFS2 as adopted may disproportionately benefit ethanol produced from sugarcane which could make sugarcane based ethanol, which is primarily produced in Brazil, more competitive in the United States ethanol market. If this were to occur, it could reduce demand for the ethanol that we produce.

Most ethanol that is used in the United States is sold in a blend called E10. E10 is a blend of 10% ethanol and 90% gasoline. E10 is approved for use in all standard vehicles. Estimates indicate that gasoline demand in the United States is approximately 134 billion gallons per year. Assuming that all gasoline in the United States is blended at a rate of 10% ethanol and 90% gasoline, the maximum demand for ethanol is 13.4 billion gallons per year. This is commonly referred to as the "blending wall," which represents a theoretical limit where more ethanol cannot be blended into the national gasoline pool. This is a theoretical limit because it is believed that it would not be possible to blend ethanol into every gallon of gasoline that is being used in the United States and it discounts the possibility of additional ethanol used in higher percentage blends such as E15 and E85 used in flex fuel vehicles.

Many in the ethanol industry believe that it will be impossible to meet the RFS requirement in future years without an increase in the percentage of ethanol that can be blended with gasoline for use in standard (non-flex fuel) vehicles. The United States Environmental Protection Agency (the "EPA") has approved the use of E15, gasoline which is blended at a rate of 15% ethanol and 85% gasoline, in vehicles manufactured in the model year 2001 and later. However, there were still significant federal and state regulatory hurdles that needed to be addressed before E15 would be widely available in the marketplace. The EPA has made gains towards clearing those federal regulatory hurdles. In February 2012, the EPA approved health effects and emissions testing on E15 which was required by the Clean Air Act before E15 can be sold into the market. In March 2012, the EPA approved a model Misfueling Mitigation Plan and fuel survey which must be submitted by applicants before E15 registrations can be approved. In April 2012, the EPA approved the first E15 registrations approving twenty producers who have successfully registered their product to be used as E15. Finally, in June 2012, the EPA gave the final approval to allow the sale of E15. Although management believes that these developments are significant steps towards introduction of E15 in the marketplace, there are still obstacles to meaningful market penetration by E15. Many states still have regulatory issues that prevent the sale of E15. Sales of E15 may be limited because it is not approved for use in all vehicles, the EPA requires a label that management believes may discourage consumers from using E15, and retailers may choose not to sell E15 due to concerns regarding liability. In addition, different gasoline blendstocks may be required at certain times of the year in order to use E15 due to federal regulations related to fuel evaporative emissions which may prevent E15 from being used during certain times of the year in various states. As a result, E15 has not had an immediate impact on ethanol demand in the United States and E15 may not significantly increase ethanol demand in the future.

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State Ethanol Supports

In 2006, Iowa passed legislation promoting the use of renewable fuels in Iowa. One of the most significant provisions of the Iowa renewable fuels legislation is a renewable fuels standard encouraging 10% of the gasoline sold in Iowa to be renewable fuels by 2009 and increasing incrementally to 25% renewable fuels by 2019. This is expected to be achieved through the use of tax credits that are designed to encourage the further utilization of renewable fuels in Iowa. This legislation could increase local demand for ethanol and may increase the local price for ethanol. In 2011, the Iowa legislature increased the E85 tax credit to 18 cents per gallon, created an E15 tax credit of 3 cents per gallon from 2011 until 2014, decreasing to 2.5 cents per gallon from 2015 until 2017 and waived the misfueling liability for retailers. These changes were intended to encourage the use of higher level blends of ethanol in Iowa.

Effect of Governmental Regulation

The government's regulation of the environment changes constantly. We are subject to extensive air, water and other environmental regulations and we have been required to obtain a number of environmental permits to construct and operate the ethanol plant. It is possible that more stringent federal or state environmental rules or regulations could be adopted, which could increase our operating costs and expenses. It also is possible that federal or state environmental rules or regulations could be adopted that could have an adverse effect on the use of ethanol. Plant operations are governed by the Occupational Safety and Health Administration ("OSHA"). OSHA regulations may change such that the costs of operating the ethanol plant may increase. Any of these regulatory factors may result in higher costs or other adverse conditions effecting our operations, cash flows and financial performance.

In late 2009, California passed a Low Carbon Fuels Standard ("LCFS"). The California LCFS requires that renewable fuels used in California must accomplish certain reductions in greenhouse gases which is measured using a lifecycle analysis, similar to the RFS. On December 29, 2011, a federal district court in California ruled that the California LCFS was unconstitutional which halted implementation of the California LCFS. However, the California Air Resources Board ("CARB") appealed this court ruling and on September 18, 2013, the federal appellate court reversed the federal district court, finding the LCFS constitutional and remanding the case back to federal district court to determine whether the LCFS imposes a burden on interstate commerce that is excessive in light of the local benefits. Recently, the federal appeals court refused to allow for a second hearing on this issue. In addition, a state court in California recently required that CARB take certain corrective actions regarding the approval of the LCFS regulations while allowing the LCFS regulations to remain in effect during this process. If federal and state challenges to the LCFS are ultimately unsuccessful, the LCFS could have a negative impact on demand for corn-based ethanol in California and result in decreased ethanol prices.

In 2012, the European Union concluded an anti-dumping investigation related to ethanol produced in the United States and exported to Europe. As a result of this investigation, the European Union has imposed a tariff on ethanol which is produced in the United States and exported to Europe. This tariff has resulted in significantly decreased exports of ethanol to Europe which has negatively impacted ethanol demand in the United States.

Costs and Effects of Compliance with Environmental Laws

We are subject to extensive air, water and other environmental regulations and we require a number of environmental permits to operate the plant. We have obtained all permits that are currently required for operation of the plant. In the fiscal year ended December 31, 2013, we incurred costs and expenses of approximately $125,000 complying with environmental laws, including the cost of obtaining permits. Although we have been successful in obtaining all of the permits currently required, any retroactive change in environmental regulations, either at the federal or state level, could require us to obtain additional or new permits or spend considerable resources in complying with such regulations. We anticipate incurring costs and expenses of approximately $100,000 for compliance with environmental laws for our fiscal year ended December 31, 2014.

Research and Development

We are continually working to develop new methods of operating the ethanol plant more efficiently. We continue to conduct research and development activities in order to realize these efficiency improvements.

Employees

As of December 31, 2013, we had 42 full-time employees. We do not anticipate a significant change in the number of full-time employees we have in the next 12 months.

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Financial Information about Geographic Areas

All of our operations are domiciled in the United States. All of the products we sold to our customers for our fiscal years 2013, 2012, and 2011 were produced in the United States and all of our long-lived assets are domiciled in the United States. We have engaged third-party professional marketers who decide where our products are marketed and we have limited control over the marketing decisions made by our marketers. Our marketers may decide to sell our products in countries other than the United States. Currently, a significant amount of distiller grains are exported to Mexico, Canada and China and the United States ethanol industry exported significant amounts of ethanol to Canada, Philippines, Mexico and Brazil. However, we anticipate that our products will still primarily be marketed and sold in the United States.

ITEM 1A. RISK FACTORS.

You should carefully read and consider the risks and uncertainties below and the other information contained in this report. The risks and uncertainties described below are not the only ones we may face. The following risks, together with additional risks and uncertainties not currently known to us or that we currently deem immaterial could impair our financial condition and results of operation.

Risks Relating to Our Business

The spread between ethanol and corn prices can vary significantly which can negatively impact our financial condition. Our only source of revenue comes from sales of our ethanol, distillers grains and corn oil. The primary raw materials we use to produce our ethanol, distillers grains and corn oil are corn and natural gas. In order to operate the ethanol plant profitably, we must maintain a positive spread between the revenue we receive from sales of our products and our corn and natural gas costs. This spread between the market price of our products and our raw material costs has been volatile in the past, and management anticipates that this spread will likely continue to be volatile in the future. Due to a potential change in the ethanol use requirement in the RFS, demand for ethanol may be lower during our 2014 fiscal year which could result in tighter operating margins. If we were to experience a period of time where this spread is negative, and the negative margins continue for an extended period of time, it may prevent us from profitably operating the ethanol plant which could decrease the value of our units.

We may be forced to reduce production or cease production altogether if we are unable to secure the corn we require to operate the ethanol plant. Our ability to operate the ethanol plant requires us to purchase a sufficient amount of corn throughout the year in order to continuously operate the ethanol plant. If we are unable to secure the corn we require, either now or in the future, it could negatively impact our operations. We do not expect to encounter difficulty purchasing the corn we require due to the fact that the corn crop harvested in the fall of 2013 was the largest on record, however, shortages of corn could develop during the year or in future years. If we are unable to secure the corn we require to continue to operate the ethanol plant, we may have to reduce production or cease operating altogether which may negatively impact the value of our units.

Our profitability is dependent on a positive spread between the price we receive for our products and the raw material costs required to produce our products. Practically all of our revenue is derived from the sale of our ethanol, distiller grains and corn oil. Our primary raw material costs are related to corn costs and natural gas costs. Our profitability depends on a positive spread between the market price of the ethanol, distiller grains and corn oil we produce and the raw material costs related to these products. While ethanol, distiller grains and corn oil prices typically change in relation to corn prices, this correlation may not always exist. In the event the prices of our products decrease at a time when our raw material costs are increasing, we may not be able to profitably operate the ethanol plant. In the event the spread between the price we receive for our products and the raw material costs associated with producing those products is negative for an extended period of time, we may fail, which could negatively impact the value of our units.

We may violate the terms of our credit agreements and financial covenants which could result in our lender demanding immediate repayment of our loans. Our credit agreements with Home Federal require that we comply with various financial loan covenants. We are currently in compliance with all of our financial loan covenants. Current management projections indicate that we will be in compliance with our loan covenants for at least the next 12 months. However, unforeseen circumstances may develop which could result in us violating our loan covenants. If we violate the terms of our credit agreements, including our financial loan covenants, Home Federal could deem us to be in default of our loans and require us to immediately repay the entire outstanding balance of our loans. If we do not have the funds available to repay the loans or we cannot find another source of financing, we may fail which could decrease or eliminate the value of our units.

Our inability to secure credit facilities we may require in the future could negatively impact our liquidity. Due to current conditions in the credit markets, it has been difficult for businesses to secure financing. While we do not currently require more financing than we have, and we do not anticipate requiring additional financing for the next 12 months, in the future we may

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need additional financing. If we require additional financing in the future and we are unable to secure such financing, or we are unable to secure the financing we require on reasonable terms, it may have a negative impact on our liquidity. This could negatively impact the value of our units.

Our marketers may fail to sell all of the ethanol, distiller grains and corn oil we produce which could negatively impact our profitability. We rely on our ethanol, distiller grains and corn oil marketers to sell all of our products. Currently we have an agreement with RPMG which markets all of our ethanol and corn oil and we have an agreement with CHS to market all of our distiller grains. Our only source of revenue is from the sale of our ethanol, distiller grains and corn oil. If our marketers are unable to sell all of the ethanol, distiller grains or corn oil we produce, or if they are unable to sell them at prices that allow us to operate profitability, the value of our units may be negatively impacted. Further, RPMG or CHS may fail. While we anticipate that we will be able to secure alternative marketers should RPMG or CHS cease marketing our products for any reason, we may not be able to do so without incurring additional costs or without a reduction in our revenue. Any loss of our ethanol, distiller grains or corn oil marketers may negatively impact our profitability and could decrease the value of our units.

We engage in hedging transactions which involve risks that can harm our business. We are exposed to market risk from changes in commodity prices. Exposure to commodity price risk results from our dependence on corn and natural gas in the ethanol production process. We seek to minimize the risks from fluctuations in the prices of corn and natural gas through the use of hedging instruments. These hedging instruments can be risky and can negatively impact our liquidity. In times when commodity prices are volatile, we may be required to use significant amounts of cash to make margin calls as a result of our hedging positions. The effectiveness of our hedging strategies is dependent on the cost of corn and natural gas and our ability to sell sufficient products to use all of the corn and natural gas for which we have futures contracts. Our hedging activities may not successfully reduce the risk caused by price fluctuations which may leave us vulnerable to high corn and natural gas prices. Alternatively, we may choose not to engage in hedging transactions in the future. As a result, our future results of operations and financial condition may also be adversely affected during periods in which corn and/or natural gas prices increase. These hedging transactions could impact our ability to profitably operate the ethanol plant and negatively impact our liquidity.

Our business is not diversified.  Our success depends largely on our ability to profitably operate our ethanol plant. We do not have any other lines of business or other sources of revenue if we are unable to operate our ethanol plant and manufacture ethanol, distiller grains and corn oil.  If economic or political factors adversely affect the market for ethanol, distiller grains and corn oil, we have no other line of business to fall back on. Our business would also be significantly harmed if the ethanol plant could not operate at full capacity for any extended period of time which could reduce the value of our units.

We depend on our management and key employees, and the loss of these relationships could negatively impact our ability to operate profitably. We are highly dependent on our management team to operate our ethanol plant. Our Chief Executive Officer is provided by Golden Grain Energy pursuant to the Management Services Agreement. The Management Services Agreement can be terminated on thirty days notice in certain circumstances. Further, our employees may decide to end their employment with us. If the Management Services Agreement is terminated or one or more of our management employees terminate their employment, either with us or Golden Grain Energy, we may not be able to replace these individuals. While we seek to compensate our management and key employees in a manner that will encourage them to continue their employment with us, they may choose to seek other employment. Any loss of these managers or key employees may prevent us from operating the ethanol plant profitably and could decrease the value of our units.

We may incur casualty losses that are not covered by insurance which could negatively impact the value of our units. We have purchased insurance which we believe adequately covers our losses from foreseeable risks. However, there are risks that we may encounter for which there is no insurance or for which insurance is not available on terms that are acceptable to us. If we experience a loss which materially impairs our ability to operate the ethanol plant which is not covered by insurance, the value of our units could be reduced or eliminated.

Our operations may be negatively impacted by natural disasters, severe weather conditions, and other unforeseen plant shutdowns which can negatively impact our operations. Our operations may be negatively impacted by events outside of our control such as natural disasters, severe weather, strikes, train derailments and other unforeseen events which may negatively impact our operations. If we experience any of these unforeseen circumstances which negatively impact our operations, it may affect our cash flow and negatively impact the value of our business.

Changes and advances in ethanol production technology could require us to incurcosts to update our plant or could otherwise hinder our ability tocompete in the ethanol industry or operate profitably.  Advances and changes in the technology of ethanol production are expected to occur.  Such advances and changes may make the ethanol production technology installed in our plant less desirable or obsolete.  These advances could also allow our competitors to produce ethanol at a lower cost than us.  If we are unable to adopt or incorporate technological advances, our ethanol production methods and processes could be less

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efficient than our competitors, which could cause our plant to become uncompetitive or completely obsolete.  If our competitors develop, obtain or license technology that is superior to ours or that makes our technology obsolete, we may be required to incur significant costs to enhance or acquire new technology so that our ethanol production remains competitive.  Alternatively, we may be required to seek third-party licenses, which could also result in significant expenditures.  These third-party licenses may not be available or, once obtained, they may not continue to be available on commercially reasonable terms.  These costs could negatively impact our financial performance by increasing our operating costs and reducing our net income.

Growth in the ethanol industry is dependent on growth in the fuel blending infrastructure to accommodate ethanol, which may be slow and could result in decreased ethanol demand. The ethanol industry depends on the fuel blending industry to blend the ethanol that is produced with gasoline so it may be sold to the end consumer. Substantial investments are required to expand this blending infrastructure and the fuel blending industry may choose not to expand the blending infrastructure to accommodate ethanol. Should the ability to blend ethanol not expand at the same rate as increases in ethanol supply, it may decrease the demand for ethanol which may lead to a decrease in the selling price of ethanol, which could impact our ability to operate profitably.

We are subject to litigation involving our corn oil extraction technology which could be costly and could require us to cease operating our corn oil extraction equipment. In August 2013, we were sued by GS CleanTech Corporation asserting its intellectual property rights to certain corn oil extraction processes we obtained from Solution Recovery Services, LLC. This lawsuit was joined with another pending lawsuit by GS CleanTech Corporation which was filed in 2008. The lawsuit seeks to enforce GS CleanTech's patent rights against us. If GS CleanTech is successful in its infringement action against us, we may be forced to pay damages to GS CleanTech as a result of our use of such technology and cease our production of corn oil which could negatively impact our financial condition and the value of our units.

Risks Related to Ethanol Industry

Demand for ethanol may not increase past current levels unless higher percentage blends of ethanol are more widely used. Since ethanol is typically blended with gasoline, changes in gasoline demand affects demand for ethanol. In recent years, gasoline demand has been decreasing which has similarly impacted ethanol demand. While ethanol use has increased as more gallons of gasoline in the United States are blended with ethanol, this trend may not continue as ethanol is blended at a 10% rate in nearly all of the gasoline sold in the United States. In order to increase demand for ethanol past current levels, or to maintain current demand for ethanol if gasoline demand continues to decrease, the percentage of ethanol that is blended into gasoline must increase. While the EPA has approved the use of gasoline blends containing 15% ethanol (called E15) for use in vehicles produced in the model year 2001 and after, E15 has not become readily available in the marketplace. Demand for ethanol has been positively impacted by sales of E85 for use in flexible fuel vehicles, however, many in the ethanol industry believe that the best way to increase ethanol demand is through higher percentage blends of ethanol in standard vehicles. Opponents of ethanol, particularly the petroleum industry, have opposed the use of higher blends of ethanol in gasoline and are seeking to limit the use of ethanol. If ethanol demand decreases, particularly due to decreasing gasoline demand, it could negatively impact the price we receive for our ethanol which could negatively impact our ability to profitably operate the ethanol plant. Further, if domestic ethanol supplies increase, including through increased ethanol imports from Brazil, it could negatively impact demand for the ethanol we produce which could negatively impact our ability to profitably operate the ethanol plant.

Technology advances in the commercialization of cellulosic ethanol may decrease demand for corn-based ethanol which may negatively affect our profitability. The current trend in ethanol production research is to develop an efficient method of producing ethanol from cellulose-based biomass, such as agricultural waste, forest residue, municipal solid waste, and energy crops. This trend is driven by the fact that cellulose-based biomass is generally cheaper than corn, and producing ethanol from cellulose-based biomass would create opportunities to produce ethanol in areas of the country which are unable to grow corn. The Energy Independence and Security Act of 2007 and the 2008 Farm Bill offer strong incentives to develop commercial scale cellulosic ethanol. The RFS requires that 16 billion gallons per year of advanced bio-fuels, such as cellulosic ethanol, must be consumed in the United States by 2022. Additionally, state and federal grants have been awarded to several companies which are seeking to develop commercial scale cellulosic ethanol plants. This has encouraged innovation and has led to several companies which are in the process of building commercial scale cellulosic ethanol plants. If an efficient method of producing ethanol from cellulose-based biomass is developed, we may not be able to compete effectively. If we are unable to produce ethanol as cost-effectively as cellulose-based producers, our ability to generate revenue and our financial condition will be negatively impacted.

Changes and advances in ethanol production technology could require us to incur costs to update our plant or could otherwise hinder our ability to compete in the ethanol industry or operate profitably.  Advances and changes in the technology of ethanol production are expected to occur.  Such advances and changes may make the ethanol production technology installed in our plant less desirable or obsolete.  These advances could also allow our competitors to produce ethanol at a lower cost than we are able.  If we are unable to adopt or incorporate technological advances, our ethanol production methods and processes could

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be less efficient than our competitors, which could cause our plant to become uncompetitive or completely obsolete.  If our competitors develop, obtain or license technology that is superior to ours or that makes our technology obsolete, we may be required to incur significant costs to enhance or acquire new technology so that our ethanol production remains competitive.  Alternatively, we may be required to seek third-party licenses, which could also result in significant expenditures.  These third-party licenses may not be available or, once obtained, they may not continue to be available on commercially reasonable terms.  These costs could negatively impact our financial performance by increasing our operating costs and reducing our net income.

New plants under construction or decreases in ethanol demand may result in excess production capacity in our industry. The supply of domestically produced ethanol is at an all-time high. According to the Renewable Fuels Association, as of February 10, 2014, there are 211 ethanol plants in the United States with capacity to produce approximately 14.9 billion gallons of ethanol per year. In addition, there are 6 new ethanol plants under construction or expanding which together are estimated to increase ethanol production capacity by 165 million gallons per year. Excess ethanol production capacity may have an adverse impact on our results of operations, cash flows and general financial condition. According to the Renewable Fuels Association, approximately 7% of the ethanol production capacity in the United States was idled as of February 10, 2014. Further, ethanol demand may not increase past approximately 13.4 billion gallons of ethanol due to the blend wall unless higher percentage blends of ethanol are approved by the EPA for use in all standard (non-flex fuel) vehicles. While the United States is currently exporting some ethanol which has resulted in increased ethanol demand, these ethanol exports may not continue. If ethanol demand does not grow at the same pace as increases in supply, we expect the selling price of ethanol to decline. If excess capacity in the ethanol industry continues to occur, the market price of ethanol may decline to a level that is inadequate to generate sufficient cash flow to cover our costs, which could negatively affect our profitability.

We operate in an intensely competitive industry and compete with larger, better financed companies which could impact our ability to operate profitably.  There is significant competition among ethanol producers. There are numerous producer-owned and privately-owned ethanol plants planned and operating throughout the Midwest and elsewhere in the United States.  We also face competition from ethanol producers located outside of the United States. The largest ethanol producers include Archer Daniels Midland, Flint Hills Resources, Green Plains Renewable Energy, POET, and Valero Renewable Fuels, each which is capable of producing significantly more ethanol than we produce. Further, many believe that there will be consolidation occurring in the ethanol industry which will likely lead to a few companies which control a significant portion of the United States ethanol production market. We may not be able to compete with these larger producers. These larger ethanol producers may be able to affect the ethanol market in ways that are not beneficial to us which could negatively impact our financial performance and the value of our units.  

Competition from the advancement of alternative fuels may lessen demand for ethanol. Alternative fuels, gasoline oxygenates and ethanol production methods are continually under development. A number of automotive, industrial and power generation manufacturers are developing alternative clean power systems using fuel cells, plug-in hybrids, and electric cars or clean burning gaseous fuels. Like ethanol, these emerging technologies offer an option to address worldwide energy costs, the long-term availability of petroleum reserves and environmental concerns. If these alternative technologies continue to expand and gain broad acceptance and become readily available to consumers for motor vehicle use, we may not be able to compete effectively. This additional competition could reduce the demand for ethanol, resulting in lower ethanol prices that might adversely affect our results of operations and financial condition.

Consumer resistance to the use of ethanol based on the belief that ethanol is expensive, adds to air pollution, harms engines and/or takes more energy to produce than it contributes or based on perceived issues related to the use of corn as the feedstock to produce ethanol may affect demand for ethanol.  Certain individuals believe that the use of ethanol will have a negative impact on gasoline prices at the pump. Some also believe that ethanol adds to air pollution and harms car and truck engines. Still other consumers believe that the process of producing ethanol actually uses more fossil energy, such as oil and natural gas, than the amount of energy that is produced. Further, some consumers object to the fact that ethanol is produced using corn as the feedstock which these consumers perceive as negatively impacting food prices. These consumer beliefs could potentially be wide-spread and may be increasing as a result of recent efforts to increase the allowable percentage of ethanol that may be blended for use in vehicles. If consumers choose not to buy ethanol based on these beliefs, it would affect the demand for the ethanol we produce which could negatively affect our profitability and financial condition.

Risks Related to Regulation and Governmental Action

Government incentives for ethanol production may be reduced or eliminated in the future, which could hinder our ability to operate at a profit. The ethanol industry is assisted by various federal incentives, most importantly the RFS set forth in the Energy Policy Act of 2005. The RFS helps support a market for ethanol that might disappear without this incentive. Recently, there have been proposals in Congress to reduce or eliminate the RFS. In addition, on November 15, 2013, the EPA announced a proposal to significantly reduce the RFS levels for 2014 from the statutory volume requirement of 18.15 billion gallons to 15.21

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billion gallons and reduce the renewable volume obligations that can be satisfied by corn based ethanol from 14.4 billion gallons to 13 billion gallons. This proposal would also result in a lowering of the 2014 numbers below the 2013 level of 13.8 billion gallons. The EPA is also seeking comments on several petitions it has received for partial waiver of the statutory volumes for 2014. According to the RFS, the EPA only has authority to waive the requirements of the RFS, in whole or in part, provided one of two conditions are met. The conditions are: (1) there is inadequate domestic renewable fuel supply; or (2) implementation of the requirement would severely harm the economy or environment of a state, region or the United States. Many in the ethanol industry believe that neither of these two conditions have been met. Any challenge to a reduction in the RFS may take time to work through the courts and the waiver may be implemented despite the legal challenges. If the EPA's proposal becomes a final rule which significantly reduces the RFS or if the RFS were to be otherwise reduced or eliminated, it may lead to a significant decrease in ethanol demand which could negatively impact our results of operations.

The Secondary Tariff on Imported Ethanol expired on December 31, 2011, and its absence could negatively impact our profitability. The secondary tariff on imported ethanol was allowed to expire on December 31, 2011. This secondary tariff on imported ethanol was a 54 cent per gallon tariff on ethanol produced in certain foreign countries. This made the United States a favorable market for foreign ethanol producers to export ethanol, especially in areas of the United States which are served by international shipping ports. Management believes that any increase in ethanol imports may negatively impact the demand for and price of ethanol produced in the United States which could negatively impact our financial condition and may reduce the value of our units.

The California Low Carbon Fuel Standard may decrease demand for corn based ethanol which could negatively impact our profitability. California passed a Low Carbon Fuels Standard ("LCFS") which requires that renewable fuels used in California must accomplish certain reductions in greenhouse gases, which reductions are measured using a lifecycle analysis. Management believes that these regulations could preclude corn based ethanol produced in the Midwest from being used in California. California represents a significant ethanol demand market. If the ethanol industry is unable to supply corn based ethanol to California, it could significantly reduce demand for the ethanol we produce. Recently, a federal appellate court found the LCFS constitutional and remanded the case back to federal district court to determine whether the LCFS imposes a burden on interstate commerce that is excessive in light of the local benefits. If challenges to the LCFS are ultimately unsuccessful, the LCFS could have a negative impact on demand for corn-based ethanol which could negatively impact the price we receive for our ethanol. This could result in a reduction of our revenues and negatively impact our ability to profitably operate the ethanol plant.

Changes in environmental regulations or violations of these regulations could be expensive and reduce our profitability.  We are subject to extensive air, water and other environmental laws and regulations.  In addition, some of these laws require our plant to operate under a number of environmental permits. These laws, regulations and permits can often require expensive pollution control equipment or operational changes to limit actual or potential impacts to the environment.  A violation of these laws and regulations or permit conditions can result in substantial fines, damages, criminal sanctions, permit revocations and/or plant shutdowns.  In the future, we may be subject to legal actions brought by environmental advocacy groups and other parties for actual or alleged violations of environmental laws or our permits.  Additionally, any changes in environmental laws and regulations, both at the federal and state level, could require us to spend considerable resources in order to comply with future environmental regulations. The expense of compliance could be significant enough to reduce our profitability and negatively affect our financial condition.

Carbon dioxide may be regulated in the future by the EPA as an air pollutant requiring us to obtain additional permits and install additional environmental mitigation equipment, which could adversely affect our financial performance. In 2007, the Supreme Court decided a case in which it ruled that carbon dioxide is an air pollutant under the Clean Air Act for motor vehicle emissions. In 2011, the EPA issued a tailoring rule that deferred greenhouse gas regulations for ethanol plants until July of 2014. However, in July of 2013, the D.C. Circuit issued an opinion vacating the EPA's deferral of those regulations for biogenic sources, including ethanol plants. Our plant produces a significant amount of carbon dioxide. While there are currently no regulations restricting carbon dioxide emissions, if the EPA or the State of Iowa were to regulate carbon dioxide emissions by plants such as ours, we may have to apply for additional permits or we may be required to install carbon dioxide mitigation equipment or take other as yet unknown steps to comply with these potential regulations. Compliance with any future regulation of carbon dioxide, if it occurs, could be costly and may prevent us from operating the ethanol plant profitably which could decrease or eliminate the value of our units.

ITEM 2. PROPERTIES.

Our plant is located on an approximately 350 acre site in Chickasaw County, Iowa. The plant's address is 2779 Highway 24, Lawler, Iowa 52154. Construction of our plant was completed in April 2009. All of our operations are located at this site.

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We selected our plant site because of its close proximity to rail service and access to natural gas supplies capable of meeting plant consumption needs. The plant is located on Iowa Highway 24, which runs east/west, and is about 10 miles east of Iowa Highway 63, which runs north/south, and about 40 miles north of Iowa Highway 20, which runs east/west. Our proximity to these highways provides us with easy access to Interstate 35 and Interstate 80. In addition, the plant is located on the Canadian Pacific railroad line which provides us access to many markets for our products.

All of our tangible and intangible property, real and personal, serves as the collateral for our debt financing with Home Federal Savings Bank, which is described below under "Item 7 - Management's Discussion and Analysis of Financial Condition and Results of Operations - Short-Term and Long-Term Debt Sources."

ITEM 3. LEGAL PROCEEDINGS.

Retterath Florida Lawsuit

On August 1, 2013, Steve Retterath, the Company's largest investor and a former member of the Company's board of directors filed a lawsuit in the Florida Circuit Court located in Palm Beach County, Florida. The lawsuit was subsequently removed to federal court in Florida. The Docket Number is 13-CIV-80942-MARRA. In the lawsuit, Mr. Retterath sued Homeland Energy Solutions, LLC, Pat Boyle, Maurice Hyde, Christine Marchand, Mathew Driscoll, Leslie Hansen, and Chad Kuhlers, each members of the Company's board of directors, Walter Wendland, the Company's Chief Executive Officer, David Finke, the Company's Chief Financial Officer and Kevin Howes, the Company's Plant Manager. Mr. Retterath also sued James Boeding, a former director and the Company's outside legal counsel, Joseph Leo and the BrownWinick Law Firm. Mr. Retterath's factual basis for his claims is unclear from the complaint and amended complaints Mr. Retterath has filed, however, it appears that Mr. Retterath is claiming that certain actions taken by the Company violated fiduciary duties owed to him as a member or fraudulently induced him to take certain actions. Mr. Retterath is also claiming violations of state and federal securities laws and violations of Florida's deceptive and unfair trade practices statutes. Mr. Retterath claims an unspecified damage in excess of $30 million in monetary damages. The Florida court recently ruled in favor of the Company's motion to transfer the case to Iowa.

Retterath Iowa Lawsuit

On August 14, 2013, Homeland Energy Solutions, LLC filed a lawsuit against Steve Retterath in the Iowa state court located in Polk County, Iowa. The Docket Number is EQCE 074886. The purpose of the lawsuit is to enforce the terms of the repurchase agreement we executed with Mr. Retterath on June 13, 2013. We are asking the Iowa state court to require Mr. Retterath to perform his obligations under the Retterath Repurchase Agreement pursuant to its terms. Mr. Retterath removed the case to federal court in the Federal District Court for the Southern District of Iowa in December 2013. We believe that this removal was improper and as a result we are moving to remand the case back to the Iowa state court in Polk County. This motion is currently pending before the Federal District Court for the Southern District of Iowa.

GS Cleantech Patent Litigation

On August 9, 2013, GS Cleantech Corporation ("GS Cleantech"), a subsidiary of Greenshift Corporation, filed a complaint in the United States District for the Northern District of Iowa against the Company. The complaint alleges that the Company's operation of a corn oil extraction process licensed by the Company infringes patent rights claimed by GS Cleantech. GS Cleantech seeks royalties, damages and potentially triple damages associated with the alleged infringement, as well as attorney's fees from the Company. The complaint has been transferred to the United States District Court for the Southern District of Indiana due to finding that the action involves questions of fact common to several other lawsuits which were joined in a multi-district litigation ("MDL") and which is currently pending in that district. The Company has filed an answer and counterclaims claiming invalidity of the patents, noninfringement, and inequitable conduct. The Company moved for a remand back to the Northern District of Iowa on the grounds that the MDL will not allow the Company to conduct sufficient discovery and mount a proper defense due to the advanced stage of the proceedings in the MDL which has been pending for approximately three years which was denied.

The Company intends to vigorously defend itself in this matter. However, the Company is not currently able to predict the outcome of the litigation with any degree of certainty. Should damages be awarded, the Company estimates that damages would be based on a reasonable royalty to, or lost profits of, GS Cleantech. If the court deems the case exceptional, attorney's fees may be awarded and are likely to be $1,000,000 or more. In addition, the Company may cease use of its current oil extraction process and seek out a replacement or cease oil production altogether.

ITEM 4. MINE SAFETY DISCLOSURES

None.

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PART II

ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES.

Outstanding Equity

As of February 27, 2014, we had 90,445 units outstanding and approximately 1,275 total members. On June 13, 2013, the Company entered into an agreement with Steve Retterath, the Company's largest equity holder, to repurchase and retire all of the units owned by Mr. Retterath. The Company agreed to repurchase and retire 25,860 membership units owned by Mr. Retterath in exchange for $30 million. The Company believes that it has a binding agreement with Mr. Retterath. Mr. Retterath contends he is not bound by the agreement.  The Company's position is as of the closing date, Mr. Retterath is no longer the equitable owner of any membership units in the Company. As a result, the Company has recorded a $30 million short-term liability related to the amount the Company agreed to pay Mr. Retterath to repurchase his membership units and has correspondingly reduced members' equity on our balance sheet. The 90,445 membership units outstanding include the contested membership units the Company agreed to repurchase from Mr. Retterath.

Unit Trading

There is no established public trading market for our units. However, on February 5, 2008, we established the Unit Trading Bulletin Board, which is a private online matching service, in order to facilitate trading among our members. The Unit Trading Bulletin Board consists of an electronic bulletin board on our website that provides a list of interested buyers and a list of interested sellers, along with their non-firm price quotes. The Unit Trading Bulletin Board does not automatically effect matches between potential sellers and buyers and it is the sole responsibility of sellers and buyers to contact each other to negotiate an agreement to transfer units. We do not become involved in any purchase or sale negotiations arising from our Unit Trading Bulletin Board and have no role in effecting transactions beyond approval, as required under our operating agreement, and the issuance of new certificates. We do not give advice regarding the merits or shortcomings of any particular transaction. We do not receive, transfer or hold funds or securities as an incident of operating the Unit Trading Bulletin Board. We do not receive any compensation for creating or maintaining the Unit Trading Bulletin Board. In advertising our Unit Trading Bulletin Board, we do not characterize Homeland Energy Solutions as being a broker or dealer or an exchange. We do not use the Unit Trading Bulletin Board to offer to buy or sell securities other than in compliance with the securities laws, including any applicable registration requirements.

There are detailed time lines that must be followed under the Unit Trading Bulletin Board rules and procedures with respect to offers and sales of membership units, with which all transactions must comply. In addition, all transactions must comply with our operating agreement, and are subject to approval by our board of directors.

The following table contains historical information by quarter for the past two years regarding the actual unit transactions that were completed by our unit-holders during the periods specified. Some of these transfers were made without consideration and as such no price information is included. We believe this most accurately represents the current trading value of our units. The information was compiled by reviewing the completed unit transfers that occurred on the Unit Trading Bulletin Board or through private transfers during the quarters indicated.

Quarter	Low Price		High Price		Average Price		Number of Units Traded
First Quarter 2012	$	938	$	1,200	$	1,069	235
Second Quarter 2012	$	1,100	$	1,150	$	1,125	125
Third Quarter 2012	$	1,000	$	1,200	$	1,100	300
Fourth Quarter 2012	$	1,000	$	1,025	$	1,013	56
First Quarter 2013	$	950	$	1,025	$	997	80
Second Quarter 2013	$	925	$	1,050	$	970	220
Third Quarter 2013	$	995	$	1,160	$	1,025	220
Fourth Quarter 2013	$	980	$	1,000	$	991	67

The following tables contain the bid and asked prices that were posted on the Unit Trading Bulletin Board and includes some transactions that were not completed. We believe the table above more accurately describes the trading value of our units

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as the bid and asked prices below include some offers that never resulted in completed transactions. The information was compiled by reviewing postings that were made on the Unit Trading Bulletin Board.

Sellers' Quarter	Low Price		High Price		Average Price		Number of Units Listed
First Quarter 2012	$	1,150	$	1,150	$	1,150	75
Second Quarter 2012	$	1,400	$	1,400	$	1,400	25
Third Quarter 2012	$	1,000	$	1,250	$	1,125	296
Fourth Quarter 2012	$	995	$	995	$	995	70
First Quarter 2013	$	950	$	1,200	$	1,075	205
Second Quarter 2013	$	995	$	1,500	$	1,248	175
Third Quarter 2013	$	1,100	$	1,100	$	1,100	25
Fourth Quarter 2013	$	—	$	—	$	—	—

Buyers' Quarter	Low Price		High Price		Average Price		Number of Units Listed
First Quarter 2012	$	1,000	$	1,100	$	1,050	95
Second Quarter 2012	$	1,050	$	1,100	$	1,075	45
Third Quarter 2012	$	—	$	—	$	—	—
Fourth Quarter 2012	$	—	$	—	$	—	—
First Quarter 2013	$	900	$	900	$	900	10
Second Quarter 2013	$	—	$	—	$	—	—
Third Quarter 2013	$	1,000	$	1,100	$	1,050	10
Fourth Quarter 2013	$	1,100	$	1,100	$	1,100	20

As a limited liability company, we are required to restrict the transfers of our membership units in order to preserve our partnership tax status. Our membership units may not be traded on any established securities market or readily traded on a secondary market (or the substantial equivalent thereof). All transfers are subject to a determination that the transfer will not cause Homeland Energy Solutions to be deemed a publicly traded partnership.

Distributions

We paid distributions to our members in each of our last two fiscal years. Our board of directors paid a distribution of $133 per membership unit in April 2012. Our board of directors paid a distribution of $131 per membership unit in December 2013. Our board of directors has discretion over the timing and amount of distributions to our unit holders subject to certain financial covenants required by our senior credit facility and restrictions under Iowa law. Our operating agreement requires the board of directors to endeavor to make cash distributions at such times and in such amounts as will permit our unit holders to satisfy their income tax liability in a timely fashion. Our expectations with respect to our ability to make future distributions are discussed in greater detail in "Item 7 - Management's Discussion And Analysis Of Financial Condition And Results Of Operations."

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ITEM 6. SELECTED FINANCIAL DATA

The following table presents selected financial and operating data as of the dates and for the periods indicated. The selected balance sheet financial data as of December 31, 2011, 2010 and 2009 and the selected income statement data and other financial data for the years ended December 31, 2010 and 2009 have been derived from our audited financial statements that are not included in this Form 10-K. The selected balance sheet financial data as of December 31, 2013 and 2012 and the selected income statement data and other financial data for each of the years in the three year period ended December 31, 2013 have been derived from the audited Financial Statements included elsewhere in this Form 10-K. You should read the following table in conjunction with "Item 7. Management Discussion and Analysis of Financial Condition and Results of Operations" and the financial statements and the accompanying notes included elsewhere in this Form 10-K. Among other things, those financial statements include more detailed information regarding the basis of presentation for the following financial data.

	2013		2012		2011		2010		2009
Total Revenue	$	400,211,785	$	359,242,777	$	419,312,560	$	254,480,111	$	161,855,910
Net Income	28,233,908		494,765		36,353,768		11,030,809		15,640,375
Net Income Per Unit	359.48		5.47		401.94		120.63		171.04
Distributions Declared Per Unit	131.00		133.00		79.00		68.00		—
Total Assets	174,078,126		141,847,168		157,089,094		172,675,061		182,519,688
Long-term Liabilities	15,303,526		1,268,793		246,488		33,101,406		62,263,911
Members' Equity	119,146,890		129,373,617		140,692,427		112,483,814		107,603,266

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ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Results of Operations

Comparison of Fiscal Years Ended December 31, 2013 and 2012

	2013			2012
Income Statement Data	Amount		%	Amount		%
Revenue	$	400,211,785	100.0	$	359,242,777	100.0
Cost of goods sold	368,758,166		92.1	356,064,736		99.1
Gross profit	31,453,619		7.9	3,178,041		0.9
Selling, general and administrative expenses	3,380,466		0.8	2,758,898		0.8
Operating income	28,073,153		7.0	419,143		0.1
Total other income (expense)	160,755		—	75,622		—
Net income	$	28,233,908	7.1	$	494,765	0.1

Revenue

Our total revenue for our 2013 fiscal year was approximately 11% greater than our total revenue for our 2012 fiscal year. Management attributes this increase in revenue with increased production and prices for our ethanol and distiller grains compared to the 2012 period. Our revenue is presented in our financial statements net of the shipping costs that are incurred in transporting our products to the end customer. These shipping charges are deducted by our marketers from the amounts realized on the sale of our ethanol, distiller grains and corn oil.

For our 2013 fiscal year, our total ethanol revenue increased by approximately 11% compared to our 2012 fiscal year due to higher ethanol prices and increased ethanol production. This increase in commodity price and production was offset slightly by approximately $343,000 in realized and unrealized losses on ethanol hedging activities. The average price we received for our ethanol during our 2013 fiscal year was approximately 3% greater than during our 2012 fiscal year. Management attributes this increase in ethanol prices with increased ethanol demand and lower ethanol imports during our 2013 fiscal year compared to our 2012 fiscal year. The higher ethanol prices we experienced early in our 2013 fiscal year declined toward the end of our 2013 fiscal year due to lower corn and gasoline prices. This trend has continued into our 2014 fiscal year.

Management anticipates that ethanol prices will be lower during our 2014 fiscal year compared to our 2013 fiscal year due to anticipated lower corn prices along with uncertainty regarding the amount of domestic ethanol demand during our 2014 fiscal year. Uncertainty exists related to the amount of ethanol demand as a result of the EPA's proposed reduction in the renewable volume obligation (RVO) pursuant to the RFS for corn-based ethanol. In November 2013, the EPA proposed a RVO for corn-based ethanol which was lower than the RVO for 2013. While this proposed 2014 RVO is not yet final, the prospect of reducing the corn-based ethanol RVO has led to uncertainty regarding ethanol demand which has negatively impacted prices. Even though management anticipates continued positive operating margins due to the significant reduction in corn prices following the fall harvest in 2013, these margins may not be maintained if ethanol prices continue to decline. Management believes that ethanol prices will be supported by recent increases in ethanol exports, however, if these exports do not continue, the market price of ethanol may decline.

In addition to higher ethanol prices, we sold approximately 8% more gallons of ethanol during our 2013 fiscal year compared to the same period of 2012. Management attributes this increase in total production of ethanol with improved efficiency operating the ethanol plant during our 2013 fiscal year compared to the same period of 2012. Management anticipates that ethanol production during our 2014 fiscal year will be comparable to our 2013 fiscal year, provided that we can maintain favorable operating margins.

Our total distiller grains revenue was significantly higher during our 2013 fiscal year and the same period of 2012. Our total distiller grains revenue was approximately 16% greater during our 2013 fiscal year compared to the same period of 2012.

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We sold approximately 9% more tons of distiller grains during our 2013 fiscal year compared to the same period of 2012 due to our increased production during the 2013 period, partially offset by increased corn oil production during the 2013 period. When we increase the amount of corn oil we separate from our distillers grains, the total tons of distiller grains that we have to sell decreases by the volume of corn oil which is removed. The average prices we received for our distiller grains were higher during our 2013 fiscal year compared to the same period of 2012. The average price we received per ton of modified/wet distiller grains sold increased by approximately 1% during our 2013 fiscal year compared to the same period of 2012. The average price we received per ton of dried distiller grains sold increased by approximately 4% during our 2013 fiscal year compared to the same period of 2012. Management attributes these higher distiller grains prices to higher corn prices and decreased corn supplies during our first two quarters of 2013. However, distillers grains prices were decreasing during our fourth fiscal quarter of 2013 and have continued lower after the end of our 2013 fiscal year. Management attributes these decreases in our distiller grains prices with lower corn prices. Since distiller grains are typically used as an animal feed substitute for corn, when corn prices decrease, it results in lower distiller grains prices. Management anticipates continued lower distiller grains prices due to anticipated lower corn prices during our 2014 fiscal year.

We had more revenue from corn oil sales during our 2013 fiscal year compared to the same period of 2012, due to the net effect of increased corn oil production offset by slightly lower corn oil prices. The average price we received for our corn oil during our 2013 fiscal year was approximately 7% less than the average price we received during the same period of 2012. Management attributes this decrease in corn oil prices with a combination of increased corn oil production along with relatively stable corn oil demand, management also believes lower corn prices negatively impacted corn oil prices during our 2013 fiscal year. We produced approximately 16% more pounds of corn oil during our 2013 fiscal year compared to the same period of 2012. Management attributes this increase in corn oil production with increased production by the ethanol plant generally along with improved efficiency in operating the corn oil extraction equipment which increased the amount of corn oil we can separate from each pound of distiller grains. Management anticipates that corn oil prices will remain lower during our 2014 fiscal year due to uncertainty regarding biodiesel production since the tax credit which supported biodiesel production in the past was allowed to expire at the end of 2013 and may not be renewed. Biodiesel production is a major source of corn oil demand and without strong demand from the biodiesel industry, corn oil prices may continue lower during our 2014 fiscal year.

Cost of Goods Sold

Our two primary costs of producing ethanol, distiller grains and corn oil are corn costs and natural gas costs. Our total cost of goods sold was approximately 4% greater during our 2013 fiscal year compared to the same period of 2012 due to increased corn and natural gas consumption and higher natural gas prices.

The average price we paid per bushel of corn, without taking into account derivative instruments, was approximately 3% lower during our 2013 fiscal year compared to our 2012 fiscal year. Management attributes this decrease in the average price we paid per bushel of corn with lower market corn prices during our third and fourth quarters of our 2013 fiscal year. Corn prices were higher during the beginning of our 2013 fiscal year due to lower corn supplies and unfavorable weather conditions during the local spring planting season. However, weather conditions improved during the summer of 2013 and the national corn crop harvested in the fall of 2013 was the largest corn crop on record. Corn prices continued lower through the end of our 2013 fiscal year and into our 2014 fiscal year. Management anticipates that corn prices will remain lower due to the large corn supply and uncertainty regarding corn demand. Due to the fact that the EPA has proposed reducing the RVO for corn-based ethanol in 2014, corn prices have fallen due to anticipated lower corn demand for ethanol production. In addition to the lower corn prices, our cost of goods sold was lower during our 2013 fiscal year due to $5.5 million in combined realized and unrealized gains on our risk management positions which reduced our cost of goods sold. By comparison, we had a combined realized and unrealized loss on our risk management positions which increased our cost of goods sold by approximately $4.2 million during our 2012 fiscal year. Losses, both realized and unrealized, that we experience on our corn derivative instruments increase our cost of goods sold.

We purchased approximately 10% more bushels of corn during our 2013 fiscal year compared to our 2012 fiscal year. Management attributes this increase in corn consumption with increased production during the 2013 period. Management anticipates that our corn consumption will be comparable during our 2014 fiscal year to our 2013 fiscal year.

During our 2013 fiscal year, the average price we paid per MMBtu of natural gas was approximately 24% greater compared to our 2012 fiscal year. Management attributes this increase in natural gas prices to a longer and colder winter early in our 2013 fiscal year and a colder than usual November and December at the end of our 2013 fiscal year which resulted in increased natural gas demand and prices. Natural gas prices have continued higher after the end of our 2013 fiscal year due to continuing cold temperatures. Management anticipates continued high natural gas prices during the winter months of our 2014 fiscal year, especially if the cold weather continues. We expect higher natural gas prices during winter months due to annual increases in natural gas transportation costs. In addition to the increase in natural gas prices was an increase in our total natural gas consumption of

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approximately 8% during our 2013 fiscal year compared to the same period of 2012. This increase in natural gas consumption was due to increased production at the ethanol plant.

In an attempt to minimize the effects of the volatility of corn costs on operating profits, we opened commodities trading accounts. In addition, we have a commodities manager who manages our corn procurement activities. Our risk management activities are intended to fix the purchase price of the corn we require to produce ethanol, distiller grains and corn oil. During our 2013 fiscal year, we had a realized gain of approximately $5,915,000 and an unrealized loss of approximately $437,000 related to our corn derivative instruments. During our 2012 fiscal year, we had a realized loss of approximately $5,152,000 and an unrealized gain of approximately $999,000 related to our corn derivative instruments. We recognize the gains or losses that result from changes in the value of our corn derivative instruments in cost of goods sold as the changes occur.

Selling, General and Administrative Expenses

Our selling, general and administrative expenses were higher during our 2013 fiscal year compared to our 2012 fiscal year due primarily to legal expenses we have incurred related to the various lawsuits in which we are involved.

Other Income (Expense)

We had more other income during our 2013 fiscal year compared to the same period of 2012 due to having significantly less interest expense during the 2013 period because of our reduced debt load. We had less revenue from our investment in RPMG and our patronage dividend from CHS during our 2013 fiscal year compared to the same period of 2012. We had more interest income during our 2013 fiscal year compared to the same period of 2012 due to having more cash on hand during 2013.

Comparison of Fiscal Years Ended December 31, 2012 and 2011

	2012			2011
Income Statement Data	Amount		%	Amount			%
Revenue	$	359,242,777	100.0	$	419,312,560		100.0
Cost of goods sold	356,064,736		99.1	379,166,073			90.4
Gross profit	3,178,041		0.9	40,146,487			9.6
Selling, general and administrative expenses	2,758,898		0.8	2,764,369			0.7
Operating income	419,143		0.1	37,382,118			8.9
Total other income (expense)	75,622		—	(1,028,350		)	(0.2	)
Net income	$	494,765	0.1	$	36,353,768		8.7

Revenue

Our total revenue for our 2012 fiscal year was approximately 14% less than our total revenue for our 2011 fiscal year. Management attributes this decrease in revenue with decreased ethanol revenue due to lower ethanol prices and lower ethanol production during the 2012 period, offset by an increase in corn oil revenue during our 2012 fiscal year compared to our 2011 fiscal year.

For our 2012 fiscal year, our total ethanol revenue decreased by approximately 20% compared to our 2011 fiscal year due to lower ethanol prices and decreased ethanol production. The average price we received for our ethanol during our 2012 fiscal year was approximately 14% less than during our 2011 fiscal year. Management attributes this decrease in ethanol prices with lower ethanol demand along with comparably higher ethanol supply and imports. In addition, gasoline demand was lower during our 2012 fiscal year compared to our 2011 fiscal year due to higher prices. Since ethanol is primarily blended with gasoline at a rate of 10% ethanol and 90% gasoline, when gasoline demand decreases, ethanol demand decreases comparably. In addition, management believes that a significant amount of excess ethanol was produced during the fourth quarter of 2011 which allowed fuel blenders to take advantage of the expiring VEETC blenders' tax credit. This additional production resulted in decreased ethanol demand during our 2012 fiscal year.

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In addition to lower ethanol prices, we sold approximately 6% less gallons of ethanol during our 2012 fiscal year compared to the same period of 2011. Due to the poor weather conditions during the 2012 growing season, securing corn at prices that would allow us to operate profitably was difficult. As a result, during our 2012 fiscal year we reduced production at our ethanol plant and focused on operating as efficiently as possible in order to maximize the amount of ethanol that we could produce per bushel of corn. In addition, we had a longer scheduled maintenance shutdown during our third quarter of 2012 compared to the same period of 2011 which further reduced our ethanol production.

Our total distiller grains revenue was comparable during our 2012 fiscal year and the same period of 2011. We sold approximately 14% less tons of distiller grains during our 2012 fiscal year compared to the same period of 2011 due to the fact that we were separating the corn oil from our distiller grains during the 2012 period which results in decreased tons of distiller grains produced. We also produced less ethanol during our 2012 fiscal year compared to the same period of 2011 which resulted in decreased distiller grains production. Offsetting the decreased distiller grains production was an increase in the average prices we received for our distiller grains during our 2012 fiscal year compared to the same period of 2011. The average price we received per ton of modified/wet distiller grains sold increased by approximately 29% during our 2012 fiscal year compared to the same period of 2011. The average price we received per ton of dried distiller grains sold increased by approximately 17% during our 2012 fiscal year compared to the same period of 2011. Management attributes these higher distiller grains prices to higher corn prices and decreased corn supplies.

We had significantly more revenue from corn oil sales during our 2012 fiscal year compared to the same period of 2011, primarily due to the fact that we had a full year of corn oil production during 2012 and only one quarter of production during 2011.

Cost of Goods Sold

Our total cost of goods sold was approximately 6% less during our 2012 fiscal year compared to the same period of 2011 due to decreased corn consumption and lower natural gas costs. The average price we paid per bushel of corn, without taking into account derivative instruments, was approximately 3% higher during our 2012 fiscal year compared to our 2011 fiscal year. We also had a larger realized and unrealized loss on our derivative instruments during our 2012 fiscal year compared to the same period of 2011. Management attributes this increase in our realized/unrealized loss on our derivative instruments to the significant volatility in the corn market that we experienced during our 2012 fiscal year. Management believes that due to tight corn supplies and unfavorable weather during the 2012 growing season, the corn market was extremely volatile as it tried to ration the corn supply until the 2012 harvest. Further, due to the poor condition of the 2012 corn crop in certain parts of the country, some producers held on to corn that was harvested in the fall of 2011 in order to meet delivery obligations related to the 2012 harvest.

We purchased approximately 8% less bushels of corn during our 2012 fiscal year compared to our 2011 fiscal year. Management attributes this decrease in corn consumption with decreased production during the 2012 period along with the fact that we are operating the ethanol plant in a manner than maximizes the amount of ethanol that we can produce from each bushel of corn used.

During our 2012 fiscal year, the average price we paid per MMBtu of natural gas was approximately 25% lower compared to our 2011 fiscal year. Management attributes this decrease in natural gas prices to large natural gas supplies and increases in natural gas production during 2012. In addition to the decrease in natural gas prices was a decrease in our total natural gas consumption of approximately 9% during our 2012 fiscal year compared to the same period of 2011. This decrease in natural gas consumption was due to greater plant efficiencies and less tons of distiller grains produced.

During our 2012 fiscal year, we had a realized loss of approximately $5,152,000 and an unrealized gain of approximately $999,000 related to our corn derivative instruments. During our 2011 fiscal year, we had a realized loss of approximately $562,000 and an unrealized loss of approximately $311,000 related to our corn derivative instruments.

Selling, General and Administrative Expenses

Our selling, general and administrative expenses were slightly lower during our 2012 fiscal year compared to our 2011 fiscal year due to a decrease in computer and software expenses, the upkeep of our buildings and grounds, office expenses, and the amount of our bonus accrual for management.

Other Income (Expense)

Our other expense was significantly lower during our 2012 fiscal year compared to the same period of 2011 due to having less interest expense during the 2012 period because of our reduced debt load. We also had more revenue due to a patronage

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dividend we received from CHS during the 2012 period. We had less interest income during our 2012 fiscal year compared to the same period of 2011 due to having less cash on hand during 2012.

Changes in Financial Condition for the Fiscal Year Ended December 31, 2013.

Balance Sheet Data	December 31, 2013		December 31, 2012
Total current assets	$	56,456,056	$	17,402,396
Total property and equipment	113,502,166		121,150,465
Total other assets	4,119,904		3,294,307
Total Assets	$	174,078,126	$	141,847,168
Total current liabilities	$	39,627,710	$	11,204,758
Total long-term liabilities	15,303,526		1,268,793
Total members' equity	119,146,890		129,373,617
Total Liabilities and Members' Equity	$	174,078,126	$	141,847,168

We had significantly more cash on hand at December 31, 2013 compared to December 31, 2012 due improved operating margins during our 2013 fiscal year along with the fact that we borrowed funds on our line of credit in order to offset the liability we have related to the membership unit repurchase agreement. The value of our accounts receivable was higher at December 31, 2013 compared to December 31, 2012 due to the timing of a shipment of ethanol that occurred near the end of our 2013 fiscal year end. This ethanol shipment also resulted in a decrease in our finished goods inventory at December 31, 2013 compared to December 31, 2012.

Our plant equipment was higher at December 31, 2013 compared to December 31, 2012 primarily due to our construction of a new grain bin which was placed into service during our 2013 fiscal year. Our net property and equipment was lower at December 31, 2013 compared to December 31, 2012 due to depreciation. We had approximately $109,000 in construction in progress at December 31, 2013 related to various smaller capital projects which were in progress at the end of our 2013 fiscal year.

Our other assets were higher at December 31, 2013 compared to December 31, 2012 due to the investment we made in RPMG, LLC, an affiliate of our ethanol and corn oil marketer. We continue to amortize our loan fees related to our Home Federal loan as well as certain utility rights associated with construction of the ethanol plant which reduced the value of our other assets.

Our accounts payable was lower at December 31, 2013 compared to December 31, 2012 primarily due to lower market corn prices which reduced the total amount of deferred corn payments we had at the end of our 2013 fiscal year compared to the end of our 2012 fiscal year. Our corn suppliers frequently request that we defer payments for corn until after the end of the year for tax purposes. These deferred corn payments are typically made shortly after the end of our fiscal years. We had a $30 million liability as of December 31, 2013 related to the membership unit repurchase agreement. Our payroll payable was lower at the end of our 2012 fiscal year compared to the end of our 2013 fiscal year due to the timing of our normal payroll cycle and a decrease in employee bonuses during the 2012 period. We had no current maturities of long-term debt as of December 31, 2013 or December 31, 2012 because the maturity date of our long-term revolving loan does not expire during our 2014 fiscal year.

We had higher long-term liabilities at December 31, 2013 compared to December 31, 2012 due to an outstanding balance on our term revolving line of credit at December 31, 2013 which we borrowed to hold cash to offset the current liability related to the membership unit repurchase agreement.

Liquidity and Capital Resources

Our primary sources of liquidity are cash from our operations and our $20 million long-term revolving loan. Our credit facilities are described in greater detail below under "Short-Term and Long-Term Debt Sources." As of December 31, 2013, we had $5 million available pursuant to our revolving loans and approximately $38.5 million in cash. Based on financial forecasts performed by our management, we anticipate that we will have sufficient cash from our revolving loans and cash from our operations to continue to operate the ethanol plant at capacity for the next 12 months and beyond. We do not anticipate seeking additional equity or debt financing in the next 12 months. However, should we experience unfavorable operating conditions in the future, we may have to secure additional debt or equity financing for working capital or other purposes.

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The following table shows cash flows for the fiscal years ended December 31, 2013 and 2012:

	2013			2012
Net cash provided by operating activities	$	34,278,994		$	16,596,775
Net cash (used in) investing activities	(3,409,186		)	(1,856,031		)
Net cash provided by (used in) financing activities	5,539,365			(17,812,518		)
Cash at beginning of period	2,081,779			5,153,553
Cash at end of period	$	38,490,952		$	2,081,779

Cash Flow From Operations

Our operations generated significantly more cash during our 2013 fiscal year compared to the same period of 2012, primarily due to having significantly more net income during the 2013 fiscal year.

Cash Flow From Investing Activities

We used more cash for equipment and construction purchases during our 2013 fiscal year compared to our 2012 fiscal year due primarily to the grain bin construction project we completed during our 2013 fiscal year. We primarily used cash for the final payment we made on our corn oil system and installation of second generation relief valves on our fermentation tanks during our 2012 fiscal year.

Cash Flow From Financing Activities

Financing activities provided more cash during our 2013 fiscal year compared to the same period of 2012 primarily due to drawing additional funds from our revolving line of credit. We also used less cash for distributions during the 2013 period compared to the 2012 period.

The following table shows cash flows for the fiscal years ended December 31, 2012 and 2011:

	2012			2011
Net cash provided by operating activities	$	16,596,775		$	59,724,423
Net cash (used in) investing activities	(1,856,031		)	(4,970,163		)
Net cash (used in) financing activities	(17,812,518		)	(49,600,707		)
Cash at beginning of period	5,153,553			—
Cash at end of period	$	2,081,779		$	5,153,553

Cash Flow From Operations

Our operations generated less cash during our 2012 fiscal year compared to the same period of 2011, primarily due to having significantly less net income during the 2012 period.

Cash Flow From Investing Activities

We primarily used cash for equipment and construction purchases during our 2012 fiscal year for the final payment we made on our corn oil system and installation of second generation relief valves on our fermentation tanks. We used cash in our 2011 fiscal year primarily to install our corn oil extraction equipment.

Cash Flow From Financing Activities

We used less cash for financing activities during our 2012 fiscal year compared to the same period of 2011. We used less cash for distributions during the 2012 period because we paid both our 2010 and 2011 distributions during the 2011 period. Cash we used for distributions during the 2012 period was offset by proceeds we received from our long-term debt. We also made fewer payments on our long-term debt during the 2012 period compared to the same period of 2011. We used cash to redeem units from a member during our 2011 fiscal year and reduced the amount of checks we had issued in excess of our bank balances.

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Short-Term and Long-Term Debt Sources

Master Loan Agreement with Home Federal Savings Bank

On November 30, 2007, we entered into a Master Loan Agreement with Home Federal Savings Bank ("Home Federal") establishing a senior credit facility with Home Federal. In return, we executed a mortgage and a security agreement in favor of Home Federal creating a senior lien on substantially all of our assets. The Company currently has a term revolving loan with Home Federal.

On November 29, 2013, we executed amended loan agreements with Home Federal. The primary purpose of these amendments was to extend the maturity date of our $20 million term revolving loan. The term revolving loan was scheduled to mature on July 1, 2014. The new maturity date of our term revolving loan is August 1, 2018. Along with the extension of the maturity date of our term revolving loan, we received a formal waiver of any covenant violations associated with the Retterath Repurchase Agreement. We also agreed to revised financial loan covenants and an increase in the interest rate for our term revolving loan. The interest rate on our term revolving loan increased from LIBOR plus 275 basis points to LIBOR plus 310 basis points.

Subsequent to the end of our 2013 fiscal year, we executed amended loan agreements with our primary lender, Home Federal Savings Bank ("Home Federal"), pursuant to which Home Federal loaned us $15 million. The $15 million loan is structured as a term loan with a maturity date of March 1, 2019. The purpose of this term loan is to offset our liability associated with the Retterath Repurchase Agreement. The proceeds of this loan will be placed in a separate account which will be used to finance the first payment due to Mr. Retterath pursuant to the Retterath Repurchase Agreement. Interest accrues on the term loan at an annual rate of 310 basis points in excess of the one month London Interbank Offered Rate (LIBOR), adjusted monthly. We agreed to make monthly payments pursuant to the term loan of approximately $250,000 plus interest.

Term Revolving Loan

We have a $20 million term revolving loan which has a maturity date of August 1, 2018. Interest on the term revolving loan accrues at a rate equal to the one month LIBOR plus 310 basis points. We are required to make monthly payments of interest until the maturity date of the term revolving loan, on which date the unpaid principal balance of the term revolving loan becomes due. As of December 31, 2013, we had $15,000,000 outstanding on our term revolving loan and $5,000,000 available to be drawn. Interest accrued on our term revolving loan as of December 31, 2013 at a rate of 3.268% per year.

If we fail to make a payment of principal or interest on any loan within 10 days of the due date, there will be a late charge equal to 5% of the amount of the payment.

Covenants

In connection with the Master Loan Agreement, we are required to comply with certain debt covenants and financial ratios. As of December 31, 2013, we were in compliance with all of our debt covenants and financial ratios. We are required to maintain tangible net worth of 60%. Tangible net worth is calculated as the excess of our total assets (with certain exclusions, such as intangible assets) over total liabilities (except subordinated debt if applicable).

We are also required to maintain a fixed charge coverage ratio of 1.25:1.00 which is a covenant intended to measure our ability to pay amounts due on our long-term debt. We were required to have working capital of at least $12 million by May 1, 2010 and annually thereafter. As of December 31, 2013, we had working capital of approximately $25 million. Management anticipates that we will be in compliance with all of our debt covenants and financial ratios for at least the next 12 months.

Failure to comply with the loan covenants or to maintain the required financial ratios may cause acceleration of the outstanding principal balances on the loans and/or the imposition of fees, charges or penalties. Any acceleration of the debt financing or imposition of the fees, charges or penalties may restrict or limit our access to the capital resources necessary to continue plant operations.

Should we default on any of our obligations pursuant to the Home Federal loans, Home Federal may terminate its commitment to provide us funds and declare the entire unpaid principal balance of the loans, plus accrued interest, immediately due and payable. Events of default include the failure to make payments when due, our insolvency, any material adverse change in our financial condition or the breach of any of the covenants, representations or warranties we have made in the loan agreements.

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Contractual Cash Obligations

In addition to our long-term debt obligations, we have certain other contractual cash obligations and commitments. The following table provides information regarding our consolidated contractual obligations and approximate commitments as of December 31, 2013:

	Payment Due By Period
Contractual Cash Obligations	Total		Less than One Year		One to Three Years		Three to Five Years		After Five Years
Long-Term Debt Obligations	$	15,304,000	$	106,000	$	198,000	$	15,000,000	$	—
Operating Lease Obligations	6,006,000		1,663,000		4,187,000		156,000		—
Purchase Obligations	19,923,000		3,828,000		11,361,000		4,734,000		—
Total Contractual Cash Obligations	$	41,233,000	$	5,597,000	$	15,746,000	$	19,890,000	$	—

Application of Critical Accounting Estimates

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

Revenue recognition

Revenue from the sale of 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. 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 is recorded based on the net selling price reported to the Company from the marketer.

Inventory Valuation

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

Derivative Instruments

The Company evaluates its contracts to determine whether the contracts are derivative instruments. Certain contracts that literally meet the definition of a derivative may be exempted from derivative accounting as normal purchases or normal sales. 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. Contracts that meet the requirements of normal purchases or sales are documented as normal and exempted from the accounting and reporting requirements of derivative accounting.

The Company enters into short-term cash, option and futures contracts as a means of securing purchases of corn, natural gas and sales of ethanol for the plant and managing exposure to changes in commodity and energy prices. All of the Company's derivatives are designated as non-hedge derivatives for accounting purposes, with changes in fair value recognized in net income. Although the contracts are economic hedges of specified risks, they are not designated as and accounted for as hedging instruments.

As part of its trading activity, the Company uses futures and option contracts through regulated commodity exchanges to manage its risk related to pricing of inventories. To reduce that risk, the Company generally takes positions using cash and futures contracts and options.

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

28

accompanying financial statements. The fair values of contracts entered through commodity exchanges are presented on the accompanying balance sheet as derivative instruments.

Property and Equipment

Property and equipment is stated at cost. Depreciation is computed using the straight-line method over the following estimated useful lives:

	Estimated Useful Life in Years
Land Improvements	20-40
Buildings	10-40
Equipment	7-40

Maintenance and repairs are charged to expense as incurred; major improvements are capitalized.

Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. An impairment loss would be recognized when estimated undiscounted future cash flows form operations are less than the carrying value of the asset group. An impairment loss would be measured by the amount by which the carrying value of the asset exceeds the fair value of the asset. In accordance with our policies, management has evaluated the plant for possible impairment based on projected future cash flows from operations. Management has determined that its projected cash flows from operations exceed the carrying value of the plant and that no impairment existed at December 31, 2013.

Off-Balance Sheet Arrangements

We do not have any off-balance sheet arrangements.

ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

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

Interest Rate Risk

We are exposed to market risk from changes in interest rates. Exposure to interest rate risk results primarily from holding a revolving line of credit which bears a variable interest rate. As of December 31, 2013, we had $15,000,000 outstanding on our variable interest rate loans and interest accrued at a rate of 3.268%. Our variable interest rates are calculated by adding a set basis to LIBOR. If we were to experience a 10% adverse change in LIBOR, the annual effect such change would have on our income statement, based on the amount we had outstanding on our variable interest rate loans as of December 31, 2013, would be approximately $3,000.

Commodity Price Risk

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

As of December 31, 2013, we had price protection in place for approximately 9% of our anticipated corn needs, 0% of our natural gas needs and approximately 4% of our ethanol sales for the next 12 months. A sensitivity analysis has been prepared

29

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 December 31, 2013, net of the forward and future contracts used to hedge our market risk for corn and natural gas usage requirements. The volumes are based on our expected use and sale of these commodities for a one year period from December 31, 2013. The results of this analysis, which may differ from actual results, are as follows:

	Estimated Volume Requirements for the next 12 months (net of forward and futures contracts)	Unit of Measure	Hypothetical Adverse Change in Price	Approximate Adverse Change to income
Natural Gas	3,500,000	MMBTU	10%	$	(1,893,500	)
Ethanol	132,860,000	Gallons	10%	(23,914,800		)
Corn	44,000,000	Bushels	10%	(18,568,000		)

For comparison purposes, our sensitivity analysis for our 2012 fiscal year is set forth below.

	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	3,500,000	MMBTU	10%	$	(1,435,000	)
Ethanol	115,200,000	Gallons	10%	(23,846,400		)
Corn	43,680,000	Bushels	10%	(30,925,440		)

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PART 8.        FINANCIAL STATEMENTS

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Directors and Members

Homeland Energy Solutions, LLC

We have audited the accompanying balance sheets of Homeland Energy Solutions, LLC as of December 31, 2013 and 2012, and the related statements of operations, changes in members' equity and cash flows for each of the three years in the period ended December 31, 2013. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Homeland Energy Solutions, LLC as of December 31, 2013 and 2012, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2013 in conformity with U.S. generally accepted accounting principles.

Des Moines, Iowa

February 27, 2014

31

Homeland Energy Solutions, LLC

Balance Sheets

	December 31, 2013		December 31, 2012
ASSETS
CURRENT ASSETS
Cash and cash equivalents	$	38,490,952	$	2,081,779
Accounts receivable	7,484,886		2,385,638
Derivative instruments	1,180,775		1,341,281
Inventory	7,397,733		9,655,732
Prepaid and other	1,901,710		1,937,966
Total current assets	56,456,056		17,402,396
PROPERTY AND EQUIPMENT
Land and improvements	22,533,935		22,474,880
Buildings	5,366,168		5,366,168
Equipment	139,453,228		136,867,806
Construction in progress	108,577		139,736
	167,461,908		164,848,590
Less accumulated depreciation	53,959,742		43,698,125
Total property and equipment	113,502,166		121,150,465
OTHER ASSETS
Loan fees, net of amortization of $1,145,047 and $1,097,175	27,925		75,797
Utility rights, net of amortization of $910,053 and $773,665	1,397,976		1,534,364
Other assets	2,694,003		1,684,146
Total other assets	4,119,904		3,294,307
TOTAL ASSETS	$	174,078,126	$	141,847,168

See Notes to Financial Statements.

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Homeland Energy Solutions, LLC

Balance Sheets (continued)

	December 31, 2013		December 31, 2012
LIABILITIES AND MEMBERS' EQUITY
CURRENT LIABILITIES
Accounts payable	$	8,654,638	$	10,547,541
Due to former member	30,000,000		—
Interest payable	1,361		2,512
Property tax payable	464,524		441,114
Payroll payable	507,187		213,591
Total current liabilities	39,627,710		11,204,758
COMMITMENTS AND CONTINGENCIES
LONG-TERM LIABILITIES
Term revolving loan	15,000,000		1,000,000
Other liabilities	303,526		268,793
Total long-term liabilities	15,303,526		1,268,793
MEMBERS' EQUITY (64,585 and 90,445 units issued and outstanding as of December 31, 2013 and 2012, respectively)	119,146,890		129,373,617
TOTAL LIABILITIES AND MEMBERS' EQUITY	$	174,078,126	$	141,847,168

See Notes to Financial Statements.

33

Homeland Energy Solutions, LLC

Statements of Operations

For the Years Ended December 31, 2013, 2012, and 2011

	December 31, 2013			December 31, 2012			December 31, 2011
Revenue	$	400,211,785		$	359,242,777		$	419,312,560
Costs of goods sold	368,758,166			356,064,736			379,166,073
Gross profit	31,453,619			3,178,041			40,146,487
Selling, general and administrative expenses	3,380,466			2,758,898			2,764,369
Operating income	28,073,153			419,143			37,382,118
Other income (expense)
Interest expense	(60,230		)	(246,272		)	(1,333,840		)
Interest income	11,506			820			32,025
Other income	209,479			321,074			273,465
Total other income (expense)	160,755			75,622			(1,028,350		)
Net Income	$	28,233,908		$	494,765		$	36,353,768
Basic & diluted net income per capital unit	$	359.48		$	5.47		$	401.94
Distribution per capital unit	$	131.00		$	133.00		$	79.00
Weighted average number of units outstanding for the calculation of basic & diluted net income per capital unit	78,542			90,445			90,445

See Notes to Financial Statements.

34

Homeland Energy Solutions, LLC

Statements of Cash Flows

For the Years Ended December 31, 2013, 2012, and 2011

	Fiscal Year Ended			Fiscal Year Ended			Fiscal Year Ended
	December 31, 2013			December 31, 2012			December 31, 2011
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$	28,233,908		$	494,765		$	36,353,768
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	10,445,877			11,817,100			12,476,253
Unrealized loss (gain) on risk management activities	160,506			259,437			(65,404		)
Change in working capital components:
Accounts receivable	(5,099,248		)	1,010,396			9,646,266
Inventory	2,257,999			845,702			(540,883		)
Prepaid expenses and other	36,256			309,158			(274,102		)
Accounts payable and other accrued expenses	(1,756,304		)	1,860,217			2,128,525
Net cash provided by operating activities	34,278,994			16,596,775			59,724,423
CASH FLOWS FROM INVESTING ACTIVITIES
Payments for equipment and construction in progress	(2,399,329		)	(1,437,370		)	(4,275,040		)
Increase in other assets	(1,009,857		)	(593,348		)	(875,188		)
Decrease in restricted cash	—			174,687			180,065
Net cash (used in) investing activities	(3,409,186		)	(1,856,031		)	(4,970,163		)
CASH FLOWS FROM FINANCING ACTIVITIES
Increase (decrease) in checks issued in excess of bank balance	—			—			(1,574,710		)
Distribution to members	(8,460,635		)	(12,029,185		)	(13,295,415		)
Proceeds from long-term borrowings	130,350,000			24,750,000			—
Redemption of member units	—			—			(1,000,000		)
Payments on long-term borrowings	(116,350,000		)	(30,533,333		)	(33,730,582		)
Net cash provided by (used in) financing activities	5,539,365			(17,812,518		)	(49,600,707		)
Net increase (decrease) in cash	36,409,173			(3,071,774		)	5,153,553
Cash and Cash Equivalents - Beginning	2,081,779			5,153,553			—
Cash and Cash Equivalents - Ending	$	38,490,952		$	2,081,779		$	5,153,553
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
Cash paid for interest, net of capitalized interest of none, none, and $59,654, respectively	$	61,381		$	256,727		$	1,019,499
SUPPLEMENTAL SCHEDULE OF NONCASH INVESTING AND FINANCING ACTIVITIES
Equity adjustment in investee	$	—		$	215,610		$	—
Accounts payable related to property and equipment	$	213,989		$	—		$	—
Commitment to redeem membership units	$	30,000,000		$	—		$	—

See Notes to Financial Statements.

35

Homeland Energy Solutions, LLC

Statement of Members' Equity

For the Years ended December 31, 2013, 2012, and 2011

	Members
	Equity
Balance, December 31, 2010	$	112,483,814
Redemption of 1,000 membership units	(1,000,000		)
Distributions	(7,145,155		)
Net Income	36,353,768
Balance, December 31, 2011	140,692,427
Equity adjustment in investee	215,610
Distributions	(12,029,185		)
Net Income	494,765
Balance, December 31, 2012	129,373,617
Committed 25,860 membership units to be redeemed	(30,000,000		)
Distributions	(8,460,635		)
Net Income	28,233,908
Balance, December 31, 2013	$	119,146,890

See Notes to Financial Statements.

36

Homeland Energy Solutions, LLC

Notes to Financial Statements

1. Nature of Business and Significant Accounting Policies

Nature of Business: Homeland Energy Solutions, LLC (an Iowa Limited Liability Company) is located near Lawler, Iowa and was organized to pool investors for a 100 million gallon ethanol plant with distribution throughout the United States. The Company has capacity to produce in excess of 133 million gallons annually and sells distillers dried grains and corn oil as byproducts of ethanol production.

Organization: Homeland Energy Solutions, LLC is organized as an Iowa limited liability company. The members' liability is limited as specified in Homeland Energy Solutions' operating agreement and pursuant to the Iowa Revised Uniform Limited Liability Company Act.

Significant Accounting Policies:

Accounting Estimates: Management uses estimates and assumptions in preparing these financial statements in accordance with United States 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 Cash Equivalents: The Company maintains its accounts primarily at one financial institution. At various times, the Company's cash balances may exceed amounts insured by the Federal Deposit Insurance Corporation. The Company has not experienced losses in such accounts.

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

Investments: The Company has a less than 20% investment interest in Renewable Products Marketing Group, LLC. This investment is being accounted for under 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. The investment balance is included in other assets and the income recognized as other income. The investment is 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.

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

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

	Estimated Useful Life in Years
	Minimum	Maximum
Land Improvements	20	40
Buildings	10	40
Equipment	7	40

Land improvements relate to two general categories: road infrastructure and general sitework. Road infrastructure relates to the excavating and paving of surface roads and the sitework includes such things as the well system and earthmoving. Buildings relate to three general categories: grain handling, process and administrative buildings. Equipment relates to three general categories: mechanical equipment, rail handling equipments and administrative and maintenance equipment. Mechanical equipment generally relates to equipment for handling inventories and the production of ethanol and related products, including such things as boilers, cooling towers, grain bins, centrifuges, conveyors, fermentation tanks, pumps and drying equipment. Rail handling equipments relates to railroad track. Administrative and maintenance equipment includes vehicles, computer systems, security equipments, testing devices and shop equipment.

37

Homeland Energy Solutions, LLC

Notes to Financial Statements

The Company reviewed its usage, continued maintenance and productivity of its processing and production equipment, based on this review the Company reevaluated the useful lives of such equipment. As such, effective October 1, 2012 the Company increased the estimated useful lives on a significant portion of its processing and production equipment from 10 to 15 years. This change in estimate is accounted for on a prospective basis. This change resulted in a decrease in depreciation expense, an increase to operating income and an increase in net income of approximately $750,000, and an increase in income per unit of $8.29 for the Fourth Quarter 2012.

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 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 in 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. The Company has concluded that no impairment is necessary.

Derivative Instruments: The Company evaluates its contracts to determine whether the contracts are derivative instruments. Certain contracts that literally meet the definition of a derivative may be exempted from derivative accounting as normal purchases or normal sales. 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. Contracts that meet the requirements of normal purchases or sales are documented as normal and exempted from the accounting and reporting requirements of derivative accounting.

The Company enters into short-term cash, option and futures contracts as a means of securing purchases of corn, natural gas and sales of ethanol for the plant and managing exposure to changes in commodity and energy prices. All of the Company's derivatives are designated as non-hedge derivatives for accounting purposes, with changes in fair value recognized in net income. Although the contracts are economic hedges of specified risks, they are not designated as and accounted for as hedging instruments.

As part of its trading activity, the Company uses futures and option contracts through regulated commodity exchanges to manage its risk related to pricing of inventories. To reduce that risk, the Company generally takes positions using cash and futures contracts and options.

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 entered through commodity exchanges are presented on the accompanying balance sheet as derivative instruments.

Loan Fees and Utility Rights: Utility rights consist of payments to electric and natural gas companies for construction in aid of electric and gas lines to the facility but the Company retains no ownership rights to the assets. The loan fees are amortized over the term of the loan and utility rights are amortized over 15 years or the anticipated useful life utilizing a method that materially approximates the straight-line method. The useful life was determined in part by the length of service agreements the Company has with the utility companies as well as normal usage of such infrastructure.

At December 31, 2013, the Company anticipates the following amortization of Loan Fees and Utility Rights for the twelve month periods ended December 31:

38

Homeland Energy Solutions, LLC

Notes to Financial Statements

2014	$	164,000
2015	136,000
2016	136,000
2017	136,000
2018	136,000
Thereafter	718,000
Total amortization	$	1,426,000

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. The generally occurs upon shipment, loading of the goods or when the customer picks up the goods. Interest income is recognized as earned. Shipping costs incurred by the Company in the sale of ethanol and distiller grains are not specifically identifiable and as a result, revenue from the sale of ethanol and distiller grains is recorded based on the net selling price reported to the Company from the marketer. Rail car lease costs incurred by the Company in the sale and shipment of distiller grain products are included in the cost of goods sold.

Income Taxes: The Company was formed under sections of the federal and state income tax laws which provide that, in lieu of corporate income taxes, the members separately account for their share of the Company's items of income, deductions, losses and credits. As a result of this election, no income taxes have been recognized in the accompanying financial statements.

Committed Shares to be Redeemed: On June 13, 2013, the Company entered into an agreement with Steve Retterath, the Company's largest member, to repurchase and retire all of the membership units owned by Mr. Retterath. The Company agreed to close on this repurchase on or before August 1, 2013. The Company agreed to repurchase and retire 25,860 membership units owned by Mr. Retterath in exchange for $30 million, to be paid in two equal installments payable at closing and on July 1, 2014. The transaction failed to close by the scheduled date due to objections by Mr. Retterath. Due to all conditions of the agreement being met prior to, or on, August 1, 2013, the Company believes that it has a binding agreement with Mr. Retterath; as such the commitment to repurchase and retire the membership units is reflected in the financial statements as if the transaction had closed on August 1, 2013.

Net Income per Unit: Basic and diluted net income per unit is computed by dividing net income by the weighted average number of members' units and members' unit equivalents outstanding during the period. There were no member unit equivalents outstanding during the periods presented; accordingly, the Company's basic and diluted net income per unit are the same.

Prior to, or on, August 1, 2013, the Company believes it has a binding agreement with Steve Retterath to repurchase and retire all 25,860 membership units owned by Mr. Retterath. These membership units have thus been excluded in the determination of net income per unit as presented in the Statement of Operations. The Company is currently involved in litigation with Mr. Retterath. There is potential that Mr. Retterath will continue as a unit holder upon conclusion of the litigation and said membership units would not be redeemed under the repurchase agreement date. If the units are not redeemed, basic and diluted net income per unit, including the 25,860 shares, for the three and twelve months ended December 31, 2013 would be $139.92 and $312.17, respectively.

Environmental Liabilities: The Company's operations are subject to environmental laws and regulations adopted by various governmental authorities in the jurisdiction in which it operates. These laws require the Company to investigate and remediate the effects of the release or disposal of materials at its locations. Accordingly, the Company has adopted policies, practices and procedures in the areas of pollution control, occupational health and the production, handling, storage and use of hazardous materials to prevent material environmental or other damage, and to limit the financial liability which could result from such events. Environmental liabilities are recorded when the Company's liability is probable and the costs can be reasonably estimated. No expense or liability, including asset retirement obligations, for environmental liabilities has been recorded for the years ended December 31, 2013, 2012, or 2011.

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

39

Homeland Energy Solutions, LLC

Notes to Financial Statements

to the plant primarily from local agricultural producers and from purchases on the open market. For the twelve months ended December 31, 2013, ethanol sales averaged approximately 76% of total revenues, while approximately 21% of revenues were generated from the sale of distiller grains and 3% of revenues were generated from the sale of corn oil. For the twelve months ended December 31, 2013, corn costs averaged approximately 86% of cost of goods sold.

The Company's operating and financial performance is largely driven by the prices at which it sells ethanol and the net expense of corn. The price of ethanol is influenced by factors such as supply and demand, weather, government policies and programs, and unleaded gasoline and the petroleum markets, although since 2005 the prices of ethanol and gasoline began a divergence 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, and 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 December 31, 2013 and 2012.

	December 31, 2013		December 31, 2012
Raw Materials	$	4,617,404	$	4,634,704
Work in Process	1,600,041		2,350,304
Finished Goods	1,180,288		2,670,724
Totals	$	7,397,733	$	9,655,732

3.    DEBT

Master Loan Agreement with Home Federal Savings Bank

On November 30, 2007, the Company entered into a Master Loan Agreement with Home Federal Savings Bank ("Home Federal") establishing a senior credit facility with Home Federal for the construction of a 100 million gallon per year natural gas powered dry mill ethanol plant. In return, the Company executed a mortgage in favor of Home Federal creating a senior lien on the real estate and plant and a security interest in all personal property located on Company property. The Company currently has a term revolving loan with Home Federal.

Term Revolving Loan

Under the terms of the Seventh Amendment to the Master Loan Agreement, the company has a $20 million term revolving loan which has a maturity date of August 1, 2018. Interest on the term revolving loan accrues at a rate equal to the one month LIBOR plus 310 basis points, 3.27% on December 31, 2013. The Company is required to make monthly payments of interest until the maturity date of the term revolving loan on August 1, 2018, on which date the unpaid principal balance of the term revolving loan becomes due. The balance outstanding on the term revolving loan as of December 31, 2013 and December 31, 2012 was $15,000,000 and $1,000,000 respectively.

Covenants

In addition, during the term of the Loans, the Company is subject to certain financial covenants at various times calculated monthly, quarterly or annually, including restriction of the payment of dividends and capital expenditures and maintenance of certain financial ratios including the minimum working capital, tangible net worth, and a fixed charge ratio as defined by the Master Loan Agreement. 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 the imposition of fees, charges or penalties.

40

Homeland Energy Solutions, LLC

Notes to Financial Statements

4.    RELATED PARTY TRANSACTIONS

Due to Former Member

On June 13, 2013, the Company entered into an agreement with Steve Retterath, the Company's largest member, to repurchase and retire all of the units owned by Mr. Retterath. The Company agreed to close on this repurchase on or before August 1, 2013. The Company agreed to repurchase and retire 25,860 memberships units owned by Mr. Retterath in exchange for $30 million, to be paid in two equal installments payable at closing and on July 1, 2014. The transaction failed to close by the scheduled date due to objections by Mr. Retterath. The Company believes that it has a binding agreement with Mr. Retterath. On August 14, 2013, the Company filed a lawsuit against Mr. Retterath in Iowa state court to enforce the terms of the repurchase agreements. The Company is asking the Iowa court to require Mr. Retterath to complete the repurchase agreement pursuant to its terms.

Mr. Retterath contends that he is not bound by the agreement. The Company's position is as of the closing date, Mr. Retterath is no longer the equitable owner of any membership units in the Company. As a result, the Company has recorded a $30 million short-term liability related to the amount the Company agreed to pay Mr. Retterath to repurchase his membership units and has correspondingly reduced members' equity on its balance sheet. If the Company is ultimately unsuccessful in its lawsuit against Mr. Retterath, the Company will reevaluate the accounting considerations made during the period of time that the lawsuit is pending.

Other Matters

The Company purchases corn and materials from members of its Board of Directors who own or manage elevators or are local producers of corn. Purchases during the years ended December 31, 2013, 2012 and 2011 from these companies and individuals totaled approximately $4,347,000, $0 and $16,927,000, respectively. Amounts due to those members was $0 as of December 31, 2013 and 2012.

The Company has an agreement with Golden Grain Energy, LLC (Golden Grain), a member of the Company, for management services. Pursuant to the agreement, Homeland Energy and Golden Grain have agreed to share management services in an effort to reduce the costs of administrative overhead. Homeland Energy and Golden Grain have agreed to split the compensation costs associated with each of the employees covered by the agreement. For the years ended December 31, 2013, 2012, and 2011 the Company incurred net costs of approximately $139,000, $119,000 and $244,000, respectively related to this agreement.

5.    COMMITMENTS, CONTINGENCIES AND AGREEMENTS

Ethanol, corn oil, and distiller grains marketing agreements and major customers

Prior to May 1, 2011, the Company had entered into a marketing agreement to sell all ethanol produced at the plant to an unrelated entity at a mutually agreed on price, less commission and transportation charges. This agreement was terminated effective April 30, 2011.

Effective May 1, 2011, the Company entered into a marketing agreement with RPMG, a related party, to sell all ethanol produced at the plant to an entity in which the Company invests in at a mutually agreed on price, less commission and transportation charges. As of December 31, 2013, the Company had commitments to sell approximately 13,800,000 gallons at various fixed prices and 20,700,000 gallons at basis price levels indexed against exchanges for delivery through March 31, 2014.

Effective July 28, 2011, the Company entered into a marketing agreement with RPMG to sell all corn oil produced at the plant at a mutually agreed on price, less marketing fees and transportation charges. As of December 31, 2013, the Company had commitments to sell approximately 2,000,000 pounds at various fixed and basis price levels indexed against exchanges for delivery through January 31, 2014.

The Company also has an investment in RPMG, LLC, included in other assets, totaling approximately $2,305,000 and $1,293,000 as of December 31, 2013 and 2012.

The Company has entered into a marketing agreement to sell all distiller grains produced at the plant to CHS, an unrelated party, at a mutually agreed on price, less commission and transportation charges. The agreement was renewed for another one year term on April 1, 2013. The agreement calls for automatic renewal for successive one-year terms unless 120-day prior written notice is

41

Homeland Energy Solutions, LLC

Notes to Financial Statements

given before the current term expires. As of December 31, 2013, the Company had approximately 69,000 tons of distiller grains commitments for delivery through September 2014 at various fixed prices.

Sales and marketing fees related to the agreements in place for the years ended December 31, 2013, 2012 and 2011 were as follows:

	2013		2012		2011
Sales ethanol - unrelated parties	$	—	$	—	$	103,973,000
Sales ethanol - RPMG	305,444,000		276,321,000		241,229,000
Sales distiller grains	82,552,000		71,272,000		71,647,000
Sales corn oil - RPMG	12,558,000		11,649,000		2,424,000
Marketing fees ethanol - unrelated parties	—		—		558,000
Marketing fees ethanol - RPMG	225,000		392,000		380,000
Marketing fees distiller grains	744,000		723,000		910,000
Marketing fees corn oil - RPMG	67,000		67,000		17,000
	2013		2012		2011
Amount due from RPMG	5,245,000		199,000		1,113,000
Amount due from CHS	2,147,000		2,077,000		2,255,000

At December 31, 2013, the Company had approximately $16,163,000 in outstanding corn purchase commitments for bushels at various prices and approximately 2,500,000 bushels of unpriced corn through December 2014 accounted for under the normal purchase exclusion.

The Company has commitments for minimum purchases of various utilities such as natural gas and electricity over the next 6 years, accounted for under the normal purchase exclusion, which are anticipated to approximate the following for the twelve month periods ending December 31:

2014	$	3,828,000
2015	3,787,000
2016	3,787,000
2017	3,787,000
2018	3,787,000
Thereafter	947,000
Total anticipated commitments	$	19,923,000

6.    LEASE OBLIGATIONS

The Company leases rail cars and rail moving equipment with original terms up to 5 years. The Company is obligated to pay costs of insurance, taxes, repairs and maintenance pursuant to terms of the leases. Rent expense incurred for the operating leases during the years ended December 31, 2013, 2012 and 2011 was approximately $1,665,000, $1,334,000 and $2,365,000.

At December 31, 2013, the Company had the following approximate minimum rental commitments under non-cancelable operating leases for the twelve month periods ended December 31:

42

Homeland Energy Solutions, LLC

Notes to Financial Statements

2014	$	1,663,000
2015	1,663,000
2016	1,663,000
2017	861,000
2018	156,000
Thereafter	—
Total lease commitments	$	6,006,000

7.    EMPLOYEE BENEFIT PLANS

The Company has adopted a Simple IRA Adoption Agreement which provides retirement savings options for all eligible employees. Employees meeting certain eligibility requirements can participate in the plan. The Company makes a matching contribution based on the participants' eligible wages. For the years ended December 31, 2013, 2012 and 2011 the Company made matching contributions of approximately $64,000, $69,000 and $58,000, respectively.

8.    DERIVATIVE INSTRUMENTS

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 and options contracts to reduce its net position of merchandisable agricultural commodity inventories and forward cash purchase and sales contracts and uses exchange traded futures and options contracts to reduce price risk. Exchange-traded futures contracts are valued at market price. Changes in market price of exchange traded futures and options contracts related to corn and natural gas are recorded in costs of goods sold and changes in market prices of contracts related to the sale of ethanol, if applicable, are recorded in revenues.

The Company uses futures or options contracts to fix the purchase price of anticipated volumes of corn to be purchased and processed in a future month.    The Company's plant will grind approximately 46 million bushels of corn per year.  During the previous period and over the next 12 months, the Company has hedged and anticipates hedging between 5% and 60% of its anticipated monthly grind.  At December 31, 2013, the Company has hedged portions of its anticipated monthly purchases for corn averaging approximately 7% of its anticipated monthly grind over the next twelve months.

Unrealized gains and losses on non-exchange traded forward contracts are deemed "normal purchases or sales" under authoritative accounting guidance, as amended 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 periods ended December 31, 2013, 2012, and 2011 and the fair value of derivatives as of December 31, 2013 and 2012:

43

Homeland Energy Solutions, LLC

Notes to Financial Statements

	Income Statement Classification	Realized Gain (Loss)			Change In Unrealized Gain (Loss)			Total Gain (Loss)
Derivatives not designated as hedging instruments: Commodity contracts for the year ended December 31, 2013.
	Cost of Goods Sold	$	5,914,962		$	(436,513	)	$	5,478,449
	Revenue	(60,060		)	(282,660		)	(342,720		)
	Total	$	5,854,902		$	(719,173	)	$	5,135,729
Derivatives not designated as hedging instruments: Commodity contracts for the year ended December 31, 2012.
	Cost of Goods Sold	$	(5,152,176	)	$	998,738		$	(4,153,438	)
Derivatives not designated as hedging instruments: Commodity contracts for the year ended December 31, 2011.
	Cost of Good Sold	$	(562,081	)	$	(311,413	)	$	(873,494	)
	Revenue	(4,830		)	—			(4,830		)
	Total	$	(566,911	)	$	(311,413	)	$	(878,324	)

	Balance Sheet Classification	December 31, 2013			December 31, 2012
Futures and option contracts through December 2014
In gain position		$	250,813		$	893,800
In loss position		(282,660		)	(206,475		)
Cash held by broker		1,212,622			653,956
	Current Asset	$	1,180,775		$	1,341,281

9.    FAIR VALUE MEASUREMENTS

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

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

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

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

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

Derivative financial instruments: Commodity futures and exchange-traded commodity options contracts are reported at fair value utilizing Level 1 inputs. For these contracts, the Company obtains fair value measurements from an independent pricing service. The fair value measurements consider observable data that may include dealer quotes and live trading levels from the CBOT and NYMEX markets. 

44

Homeland Energy Solutions, LLC

Notes to Financial Statements

The following table summarizes financial assets and financial liabilities measured at fair value on a recurring basis as of December 31, 2013 and December 31, 2012, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value:

	Total			Level 1			Level 2		Level 3
Derivative financial instruments
December 31, 2013
Assets	$	250,813		$	250,813		$	—	$	—
Liabilities	(282,660		)	(282,660		)	—		—
December 31, 2012
Assets	$	893,800		$	893,800		$	—	$	—
Liabilities	(206,475		)	(206,475		)	—		—

10.    LITIGATION MATTERS

Retterath

In relation to the repurchase agreement discussed in Note 4, on August 1, 2013 Mr. Retterath filed a lawsuit against the Company along with several directors, the Company's CEO, CFO, Plant Manager, a former director and the Company's outside legal counsel in Florida state court. Mr. Retterath's factual basis for his claims is unclear from the complaint and amended complaints Mr. Retterath has filed, however, it appears that Mr. Retterath is claiming that certain actions taken by the Company violated fiduciary duties owed to him as a member or fraudulently induced him to take certain actions. Mr. Retterath is also claiming violations of state and federal securities laws and violations of Florida's deceptive and unfair trade practices statutes. On August 14, 2013, the Company filed a lawsuit in Iowa state court to enforce the repurchase agreement the Company entered into with Mr. Retterath.

GS Cleantech Corporation

On August 9, 2013, GL Cleantech Corporation (GS Cleantech), a subsidiary of Greenshift Corporation, filed a complaint against the Company alleging the the Company's operation of a corn oil extraction process licensed by the Company infringes patent rights claimed by GL Cleantech. GS Cleantech seeks royalties, damages and potentially triple damages associated with the alleged infringement, as well as attorney's fees from the Company. The Company has filed an answer and counterclaims claiming invalidity of the patents, noninfringement, and inequitable conduct. The Company is not currently able to predict the outcome of the litigation with any degree of certainty.

45

Homeland Energy Solutions, LLC

Notes to Financial Statements

11.    QUARTERLY FINANCIAL DATA (UNAUDITED)

Summary quarterly results for the years ended December 31, 2013, 2012 and 2011 are as follows:

2013	First Quarter		Second Quarter		Third Quarter			Fourth Quarter
Total Revenues	$	97,975,795	$	112,243,015	$	98,342,436		$	91,650,539
Gross Profit	3,157,969		8,613,215		5,614,185			14,068,250
Operating Income	2,440,555		7,944,088		4,939,290			12,749,220
Net Income	2,478,297		8,038,058		5,062,318			12,655,235
Basic & diluted earnings per unit	$	27.40	$	88.87	$	73.28		$	195.95
2012	First Quarter		Second Quarter		Third Quarter			Fourth Quarter
Total Revenues	$	92,011,614	$	93,780,274	$	84,499,206		$	88,951,683
Gross Profit (Loss)	2,367,009		1,896,219		(1,769,920		)	684,733
Operating Income (Loss)	1,594,601		1,240,174		(2,416,309		)	677
Net Income (Loss)	1,645,659		1,221,495		(2,467,293		)	94,904
Basic & diluted earnings (loss) per unit	$	18.20	$	13.51	$	(27.28	)	$	1.05
2011	First Quarter		Second Quarter		Third Quarter			Fourth Quarter
Total Revenues	$	94,498,066	$	106,548,491	$	109,993,347		$	108,272,656
Gross Profit	4,993,173		11,130,673		10,139,712			13,882,929
Operating Income	4,287,983		10,485,166		9,417,420			13,191,549
Net Income	4,277,512		10,216,858		9,133,070			12,726,328
Basic & diluted earnings per unit	$	47.26	$	112.96	$	100.98		$	140.71

12.    SUBSEQUENT EVENTS

On February 14, 2014, the Company executed amended loan agreements with Home Federal, pursuant to which Home Federal loaned the Company $15 million. The loan requires monthly principal payments of $250,000 plus interest at a rate of LIBOR plus 310 basis points and will mature March 1, 2019. The purpose of this loan is to provide funds to offset the liability associated with the Retterath repurchase agreement discussed in Note 4. The proceeds will be placed in a separate account which will be used to finance the first payment due to Mr. Retterath pursuant to the repurchase agreement.

No other events requiring recognition or disclosure in the financial statements have occurred through February 27, 2014.

ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE.

None.

ITEM 9A. CONTROLS AND PROCEDURES.

Disclosure Controls and Procedures

Management of Homeland Energy is responsible for maintaining disclosure controls and procedures that are designed to ensure that information required to be disclosed in the reports that we file or submit under the Securities Exchange Act of 1934 (the "Exchange Act") are recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission's rules and forms. In addition, the disclosure controls and procedures must ensure that such information is accumulated and communicated to the Company's management, including its Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required financial and other required disclosures.

As of the end of the period covered by this report, an evaluation of the effectiveness of our disclosure controls and procedures (as defined in Rules 13(a)-15(e) and 15(d)-15(e) of the Exchange Act) was carried out under the supervision and with the participation of our Chief Executive Officer (the principal executive officer), Walter W. Wendland, and our Chief Financial Officer (the principal financial and accounting officer), David A. Finke. Based on their evaluation of our disclosure controls and procedures, they have concluded that such disclosure controls and procedures were effective as of December 31, 2013 to ensure that information required to be disclosed in the reports that we file or submit under the Exchange Act are 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.

Internal Control Over Financial Reporting

Inherent Limitations Over Internal Controls

Our internal control over financial reporting is designed 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. Our internal control over financial reporting includes those policies and procedures that:

    (i)    pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of our assets;

    (ii)    provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that our receipts and expenditures are being made only in accordance with authorizations of our management and directors; and

    (iii)    provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of our assets that could have a material effect on the financial statements.

Management, including our Chief Executive Officer and Chief Financial Officer, does not expect that our internal controls will prevent or detect all errors and all fraud. A control system, no matter how well designed and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met. Further, the design of a control system must reflect the fact that there are resource constraints, and the benefits of controls must be considered relative to their costs. Because of the inherent limitations in all control systems, no evaluation of internal controls can provide absolute assurance that all control issues and instances of fraud, if any, have been detected. Also, any evaluation of the effectiveness of controls in future periods is subject to the risk that those internal controls may become inadequate because of changes in business conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Management's Annual Report on Internal Control over Financial Reporting

Our management is responsible for establishing and maintaining adequate internal control over financial reporting (as defined in Rule 13a-15(f) under the Securities Exchange Act of 1934, as amended). Management conducted an evaluation of the effectiveness of our internal control over financial reporting based on the criteria set forth in the 1992 Internal Control-Integrated

46

Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission ("COSO"). Based on this evaluation, management has concluded that our internal control over financial reporting was effective as of December 31, 2013.

This annual report does not include an attestation report of our registered public accounting firm regarding internal control over financial reporting. As we are a non-accelerated filer, management's report is not subject to attestation by our registered public accounting firm.

This report shall not be deemed to be filed for purposes of Section 18 of the Securities Exchange Act of 1934, or otherwise subject to the liabilities of that section , and is not incorporated by reference into any filing of the Company, whether made before or after the date hereof, regardless of any general incorporation language in such filing.

Changes in Internal Controls

There were no changes in our internal control over financial reporting during the fourth quarter of our 2013 fiscal year, which were identified in connection with management's evaluation required by paragraph (d) of rules 13a-15 and 15d-15 under the Exchange Act, that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

ITEM 9B. OTHER INFORMATION.

None.

PART III

ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE

The information required by this Item is incorporated by reference in the definitive proxy statement from our 2014 annual meeting of members to be filed with the Securities and Exchange Commission within 120 days after our 2013 fiscal year end on December 31, 2013. This proxy statement is referred to in this report as the 2014 Proxy Statement.

ITEM 11. EXECUTIVE COMPENSATION.

The information required by this Item is incorporated by reference to the 2014 Proxy Statement.

ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS.

The information required by this Item is incorporated by reference to the 2014 Proxy Statement.

ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE.

The information required by this Item is incorporated by reference to the 2014 Proxy Statement.

ITEM 14. PRINCIPAL ACCOUNTING FEES AND SERVICES.

The information required by this Item is incorporated by reference to the 2014 Proxy Statement.

PART IV

47

ITEM 15. EXHIBITS, FINANCIAL STATEMENT SCHEDULES.

Exhibits Filed as Part of this Report and Exhibits Incorporated by Reference.

The following exhibits and financial statements are filed as part of, or are incorporated by reference into, this report:

(1) Financial Statements

The financial statements appear beginning at page 31 of this report.

(2) Financial Statement Schedules

All supplemental schedules are omitted as the required information is inapplicable or the information is presented in the financial statements or related notes.

(3) Exhibits

Exhibit No.	Exhibit	Filed Herewith	Incorporated by Reference
3.1	Articles of Organization of the registrant.		Exhibit 3.1 to the registrant's registration statement on Form SB-2 (Commission File 333-135967).
3.2	Certificate of Name Change and Corresponding Amendment to Articles of Organization.		Exhibit 3.2 to the registrant's registration statement on Form SB-2 (Commission File 333-135967).
3.3	Operating Agreement of the registrant.		Exhibit 3.3 to the registrant's registration statement on Form SB-2 (Commission File 333-135967).
3.4	First Amendment to Operating Agreement of the registrant dated November 14, 2006.		Exhibit 3.4 to Pre-Effective Amendment No. 3 to the registrant's registration statement on Form SB-2 (Commission File 333-135967).
3.5	Amended and Restated Operating Agreement dated April 4, 2013.		Exhibit 3.1 to the registrant's Form 10-Q filed with the Commission on May 15, 2013.
3.6	First Amendment to Amended and Restated Operating Agreement dated December 19, 2013.	X
4.1	Form of Membership Unit Certificate.		Exhibit 4.2 to the registrant's registration statement on Form SB-2 (Commission File 333-135967).
10.1	License Agreement dated August 1, 2007 between Homeland Energy Solutions and ICM, Inc.		Exhibit 10.26 to the registrant's Form 10-QSB filed with the Commission on August 14, 2007.
10.2	Master Loan Agreement dated November 30, 2007 between Homeland Energy Solutions, LLC and Home Federal Savings Bank.		Exhibit 10.30 to the registrant's Form 10-KSB filed with the Commission on February 22, 2008.
10.3	First Supplement to the Master Loan Agreement dated November 30, 2007 between Homeland Energy Solutions, LLC and Home Federal Savings Bank.		Exhibit 10.31 to the registrant's Form 10-KSB filed with the Commission on February 22, 2008.
10.4	Second Supplement to the Master Loan Agreement dated November 30, 2007 between Homeland Energy Solutions, LLC and Home Federal Savings Bank.		Exhibit 10.32 to the registrant's Form 10-KSB filed with the Commission on February 22, 2008.
10.5	Third Supplement to the Master Loan Agreement dated November 30, 2007 between Homeland Energy Solutions, LLC and Home Federal Savings Bank.		Exhibit 10.33 to the registrant's Form 10-KSB filed with the Commission on February 22, 2008.

48

10.6	Construction Note dated November 30, 2007 between Homeland Energy Solutions, LLC and Home Federal Savings Bank.	Exhibit 10.34 to the registrant's Form 10-KSB filed with the Commission on February 22, 2008.
10.7	Term Revolving Note dated November 30, 2007 between Homeland Energy Solutions, LLC and Home Federal Savings Bank.	Exhibit 10.35 to the registrant's Form 10-KSB filed with the Commission on February 22, 2008.
10.8	Revolving Line of Credit Note dated November 30, 2007 between Homeland Energy Solutions, LLC and Home Federal Savings Bank.	Exhibit 10.36 to the registrant's Form 10-KSB filed with the Commission on February 22, 2008.
10.9	Mortgage dated November 30, 2007 between Homeland Energy Solutions, LLC and Home Federal Savings Bank.	Exhibit 10.37 to the registrant's Form 10-KSB filed with the Commission on February 22, 2008.
10.10	Security Agreement dated November 30, 2007 between Homeland Energy Solutions, LLC and Home Federal Savings Bank.	Exhibit 10.38 to the registrant's Form 10-KSB filed with the Commission on February 22, 2008.
10.11	Disbursing Agreement dated November 30, 2007 between Homeland Energy Solutions, LLC and Home Federal Savings Bank.	Exhibit 10.39 to the registrant's Form 10-KSB filed with the Commission on February 22, 2008.
10.12	Second Amendment to the Lump Sum Design-Build Agreement dated July 6, 2007 between Homeland Energy Solutions and Fagen, Inc.	Exhibit 10.40 to the registrant's Form 10-KSB filed with the Commission on February 22, 2008.
10.13	Agreement for Private Development between Homeland Energy Solutions, LLC and Chickasaw County, Iowa dated December 18, 2007.	Exhibit 10.42 to the registrant's Form 10-KSB/A filed with the Commission on May 15, 2008.
10.14	Iowa Department of Transportation Application Form for RISE: Immediate Opportunity Project Funding for Homeland Energy Solutions, LLC dated August 20, 2007.	Exhibit 10.44 to the registrant's Form 10-KSB/A filed with the Commission on May 15, 2008.
10.15	Engineering, Procurement, and Construction Agreement between Homeland Energy Solutions, LLC and Cornerstone Energy, LLC d/b/a Constellation New Energy - CEI, LLC dated December 4, 2007. +	Exhibit 10.45 to the registrant's Form 10-KSB/A filed with the Commission on May 15, 2008.
10.16	Master Natural Gas Agreement and Base Agreement between Homeland Energy Solutions, LLC and Cornerstone Energy, LLC d/b/a Constellation NewEnergy - Gas Division CEI, LLC dated December 4, 2007. +	Exhibit 10.46 to the registrant's Form 10-KSB/A filed with the Commission on May 15, 2008.
10.17	Distillers Grain Marketing Agreement with CHS, Inc. dated August 8, 2008.	Exhibit 10.2 to the registrant's Form 10-Q filed with the Commission on August 14, 2008.
10.18	Rail Facilities Agreement with R & R Contracting dated July 24, 2008.	Exhibit 10.3 to the registrant's Form 10-Q filed with the Commission on August 14, 2008.
10.19	Customer Agreement with ADM Investor Services, Inc. dated July 29, 2008.	Exhibit 10.4 to the registrant's Form 10-Q filed with the Commission on August 14, 2008.
10.20	Management Services Agreement dated December 15, 2008 with Golden Grain Energy, LLC.	Exhibit 10.1 to the registrant's Form 10-K filed with the Commission on February 26, 2009.
10.21	Electrical Services Agreement dated March 6, 2009 with Hawkeye REC. +	Exhibit 10.1 to the registrant's Form 10-Q filed with the Commission on May 15, 2009.
10.22	U.S. Energy Agreement dated July 10, 2009.	Exhibit 10.1 to the registrant's Form 10-Q filed with the Commission on August 14, 2009.

49

10.23	Third Amendment to the Master Loan Agreement between Homeland Energy Solutions, LLC and Home Federal Savings Bank dated September 10, 2010.		Exhibit 10.1 to the registrant's Form 10-Q filed with the Commission on November 12, 2010.
10.24	Member Ethanol Fuel Marketing Agreement dated March 1, 2011 between Homeland Energy Solutions, LLC and RPMG, Inc. +		Exhibit 10.1 to the registrant's Form 10-Q filed with the Commission on May 16, 2011.
10.25	Corn Oil Marketing Agreement between RPMG, Inc. and Homeland Energy Solutions, LLC dated July 28, 2011. +		Exhibit 10.1 to the registrant's Form 10-Q filed with the Commission on August 12, 2011.
10.26	Third Amended Management Services Agreement between Homeland Energy Solutions, LLC and Golden Grain Energy, LLC dated December 15, 2011.		Exhibit 10.26 to the registrant's Form 10-K filed with the Commission on February 21, 2012.
10.27	Member Amended and Restated Marketing Agreement between RPMG, Inc. and Homeland Energy Solutions, LLC dated August 27, 2012. *+		Exhibit 10.1 to the registrant's Form 10-Q filed with the Commission on November 9, 2012.
10.28	Change in Control Agreement between David Finke and Homeland Energy Solutions, LLC dated January 1, 2013.		Exhibit 10.1 to the registrant's Form 10-Q filed with the Commission on May 15, 2013.
10.29	Change in Control Agreement between Stan Wubbena and Homeland Energy Solutions, LLC dated January 1, 2013.		Exhibit 10.2 to the registrant's Form 10-Q filed with the Commission on May 15, 2013.
10.30	Change in Control Agreement between Kevin Howes and Homeland Energy Solutions, LLC dated January 1, 2013.		Exhibit 10.3 to the registrant's Form 10-Q filed with the Commission on May 15, 2013.
10.31	Membership Unit Repurchase Agreement between Homeland Energy Solutions, LLC and Steven Retterath dated June 13, 2013.		Exhibit 10.1 to the registrant's Form 10-Q filed with the Commission on August 14, 2013.
10.32	Seventh Amendment to the Master Loan Agreement between Homeland Energy Solutions, LLC and Home Federal Savings Bank dated November 29, 2013.	X
10.33	First Amendment to Second Supplement to Master Loan Agreement between Homeland Energy Solutions, LLC and Home Federal Savings Bank dated November 29, 2013.	X
10.34	Eighth Amendment to the Master Loan Agreement between Homeland Energy Solutions, LLC and Home Federal Savings Bank dated February 24, 2014.	X
10.35	Fourth Supplement to Master Loan Agreement between Homeland Energy Solutions, LLC and Home Federal Savings Bank dated February 24, 2014.	X
10.36	$15 Million Term Note between Homeland Energy Solutions, LLC and Home Federal Savings Bank dated February 24, 2014.	X
14.1	Code of Ethics.		Exhibit 14.1 to the registrant's Form 10-K filed with the Commission on February 26, 2009.
31.1	Certificate Pursuant to 17 CFR 240.13a-14(a)	X
31.2	Certificate Pursuant to 17 CFR 240.13a-14(a)	X
32.1	Certificate Pursuant to 18 U.S.C. Section 1350	X
32.2	Certificate Pursuant to 18 U.S.C. Section 1350	X

50

101 The following financial information from Homeland Energy Solutions, LLC's Annual Report on Form 10-K for the fiscal year ended December 31, 2013, formatted in XBRL (eXtensible Business Reporting Language): (i) Balance Sheets as of December 31, 2013 and 2012, (ii) Statements of Operations for the fiscal years ended December 31, 2013, 2012 and 2011, (iii) Statements of Cash Flows for the fiscal years ended December 31, 2013, 2012 and 2011, (iv) Statement of Changes in Members' Equity, and (v) the Notes to Financial Statements.**

________________________________

(+) Confidential Treatment Requested.

(**) 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.

		HOMELAND ENERGY SOLUTIONS, LLC
Date:	February 27, 2014	/s/ Walter Wendland
		Walter Wendland
		President and Chief Executive Officer (Principal Executive Officer)
Date:	February 27, 2014	/s/ David A. Finke
		David A. Finke
		Treasurer/Chief Financial Officer (Principal Financial Officer)

51

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

Date:	February 27, 2014	/s/ Patrick Boyle
		Patrick Boyle, Chairman and Director
Date:	February 27, 2014	/s/ Mathew Driscoll
		Mathew Driscoll, Director
Date:	February 27, 2014	/s/ Keith Eastman
		Keith Eastman, Director
Date:	February 27, 2014	/s/ Stephen Eastman
		Stephen Eastman, Director
Date:	February 27, 2014	/s/ Leslie Hansen
		Leslie Hansen, Director
Date:	February 27, 2014	/s/ Edward Hatten
		Edward Hatten, Director
Date:	February 27, 2014	/s/ Maurice Hyde
		Maurice Hyde, Vice Chairman and Director
Date:	February 27, 2014	/s/ Chad Kuhlers
		Chad Kuhlers, Director
Date:	February 27, 2014	/s/ Christine Marchand
		Christine Marchand, Secretary and Director
Date:	February 27, 2014	/s/ Barney Retterath
		Barney Retterath, Director
Date:	February 27, 2014	/s/ Robert Sieracki
		Robert Sieracki, Director

52

EX-3.6

FIRST AMENDMENT TO AMENDED AND RESTATED OPERATING AGREEMENT OF

HOMELAND ENERGY SOLUTIONS, LLC

THIS FIRST AMENDMENT TO THE AMENDED AND RESTATED OPERATING AGREEMENT OF HOMELAND ENERGY SOLUTIONS, LLC dated April 4, 2013 (the “Operating Agreement”) is adopted and approved effective as of the 19th day of December, 2013, by the affirmative vote of a majority of the Membership Voting Interests represented at a Member meeting of Homeland Energy Solutions, LLC (the “Company”) at which a quorum was present, pursuant to Section 8.1 of the Operating Agreement.

The Operating Agreement is amended as follows:

1.Section 1.10 of the Operating Agreement is amended by adding the subsection (ww) as set forth below:

(ww)“Appointing Member Affiliate” of, or an Appointing Member Affiliate “Affiliated” with, an Appointing Member, is a Person that directly, or indirectly through one or more intermediaries, controls or is controlled by, or is under common control with, the Appointing Member. For purposes of this definition, the term “control” (including the terms “controlling,” “controlled by” and “under common control with”) means the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of a Person, whether through the ownership of voting securities, by contract, or otherwise.

2.Section 5.2 of the Operating Agreement is removed in its entirety and is replaced by the following:

5.2Number of Directors. The total number of initial Directors of the Company shall be a minimum of seven (7) and a maximum of fifteen (15). Prior to the expiration of the initial terms of the Directors, the initial Directors, by resolution approved by the majority vote of the initial Directors, shall fix the total number of Directors, which shall be a minimum of seven (7) and a maximum of fifteen (15), that will serve following the first special or annual meeting of the Members following the date on which substantial operations of the Facilities commence. The number of Directors shall be increased by the appointment of additional Directors, if any, pursuant to section 5.3(f) below. At any annual or special meeting, the Members may increase or decrease this fixed number of Directors last approved and may change from a fixed number to a variable range or vice versa by majority vote of the total Membership Voting Interests entitled to vote generally in the election of Directors pursuant to this Agreement. However, the relative ratio of the number of Directors elected pursuant to section 5.3(a) below to Directors appointed pursuant to section 5.3(f) below shall always result in a majority of elected Directors. An Appointing Member and such Appointing Member’s Appointing Member Affiliates shall not be entitled to vote on any Member action to increase or decrease the number of Directors or change from a fixed number to a variable number or vice versa.

3.Section 5.3(a) of the Operating Agreement is removed in its entirety and is replaced by the following:

(a)Election; Terms. The initial Directors shall be appointed by the initial Members and shall, subject to Section 5.2 of this Agreement, serve until the first annual meeting of the Members following the date on which substantial operations of the Facilities commence, and in all cases until a successor is elected and qualified, or until the earlier death, resignation, removal or disqualification of any such Director. After the expiration of the initial terms of the Directors, at each annual meeting of the Members, except as provided in Section 5.3(c), Directors shall be elected by the Members for staggered terms of three (3) years (except as hereafter provided with respect to the initial terms of Group I and Group II Directors) and until a successor is elected and qualified, or until the earlier death, resignation, removal or disqualification of any such Director. An Appointing Member and such Appointing Member’s Appointing Member Affiliates shall not be entitled to vote for the election (or removal) of Directors by the Members, as their right to representation exists in their right of appointment. The initial Directors shall, by written resolution prior to the first annual or special meeting following the date on which substantial operations of the Facilities commence, to separately identify the Director positions to be elected at the first annual meeting or special meeting following the date on which substantial operations of the Facilities commence, and shall so classify each such Director position as Group I, Group II or Group III, with such classification to serve as the basis for the staggering of terms among the elected Directors. The term of Group I Directors shall expire first (initial term of one (1) year with successors elected to three (3) year terms thereafter), followed by those of Group II Directors (initial term of two (2) years with successors elected to three (3) year terms thereafter), and then Group III Directors (initial and subsequent terms of three (3) years). If at any time the number of Directors is changed as provided in Section 5.2 above, the number of Group I, Group II and Group III Directors shall be adjusted, as necessary, so that approximately one-third (1/3) of the Directors are elected at each annual meeting of the Members.

4.Section 5.3(b) of the Operating Agreement is removed in its entirety and is replaced by the following:

(b)Director Nominations. One or more nominees for Director positions up for election shall be named by the then current Directors or by a nominating committee established by the Directors. Nominations for the election of Directors may also be made by any Unit Holder entitled to vote generally in the election of Directors, in accordance with the nomination procedures set forth in this Section 5.3(b). For the sake of clarity, an Appointing Member and such Appointing Member’s Appointing Member Affiliates shall not be entitled to make nominations for the election of Directors.

i. Timing of Nominations. An eligibleUnit Holder who desires to nominate a director candidate must provide the Company with written notice of such Unit Holder’s intent to make such nomination or nominations, either by personal delivery or by United States mail, postage prepaid, to the Secretary of the Company not less than 120 calendar days before the date of the Company’s proxy statement released to Unit Holders in connection with the previous year’s annual meeting. Notwithstanding the foregoing, in the event Rule 14a-8(e)(2) of Regulation 14A of the Securities Exchange Act of 1934, as amended, relating to the submission of member proposals for inclusion in a company’s proxy statement is amended, the deadline for nominations for director candidates under this section shall automatically adjust to remain the same as the timeframe provided in Rule 14a-8(e) for member proposals. However, if the Company did not hold an annual meeting the previous year or the date of the current year’s annual meeting is changed by more than 30 days from the date of the previous year’s meeting, then the deadline is a reasonable time, as determined by the Board of Directors, before the Company begins to print and mail its proxy materials for the annual meeting of the Company. Notwithstanding any provision to the contrary, the Board of Directors, in its sole discretion, may accept written notice that is submitted after the above described deadline has passed.

ii. Content of Notice to Company of Nominations. Each such notice to the Secretary shall set forth: (a) the name and address of record of theeligible Unit Holder who intends to make the nomination; (b) a representation that the Unit Holder is a holder of record of Units of the Company entitled to vote at such meeting, is not an Appointing Member Affiliate of an Appointing Member, and intends to appear in person or by proxy at the meeting to nominate the person or persons specified in the notice; (c) the name, age, business and residence addresses, and principal occupation or employment of each nominee; (d) a description of all arrangements or understandings between the Unit Holder and each nominee and any other person or persons (naming such person or persons) pursuant to which the nomination or nominations are to be made by the Unit Holder; (e) such other information regarding each nominee proposed by such Unit Holder as would be required to be included in a proxy statement filed pursuant to the proxy rules of the Securities and Exchange Commission; (f) the consent of each nominee to serve as a Director of the Company if so elected; and (g) a nominating petition signed and dated by the holders of at least five percent (5%) of the then outstanding Units and clearly setting forth the proposed nominee as a candidate of the Director’s seat to be filled at the next election of Directors, provided that an Appointing Member and such Appointing Member’s Appointing Member Affiliates shall not be eligible to sign such nomination petition (and its or their Units shall not count towards the signatures from holders of 5% or more of outstanding Units requirement for a valid nominating petition). The Company may require any proposed nominee to furnish such other information as may reasonably be required by the Company to determine the eligibility of such proposed nominee to serve as a Director of the Company. The presiding Officer of the meeting may, if the facts warrant, determine that a nomination was not made in accordance with the foregoing procedure, and if he should so determine, he shall so declare to the meeting and the defective nomination shall be disregarded.

5.Section 5.3(c) of the Operating Agreement is removed in its entirety and is replaced by the following:

(c)Voting Requirement for Electing Directors. Nominees for open Director positions shall be elected by a plurality vote of the Members present at a meeting at which a quorum is present so that the nominees receiving the greatest number of votes relative to the votes cast for their competitors shall be elected Directors. An Appointing Member and such Appointing Member’s Appointing Member Affiliates shall not be entitled to vote for the election (or removal) of Directors by the Members, as their right to representation exists in their right of appointment.

6.Section 5.3(f) of the Operating Agreement is removed in its entirety and is replaced by the following:

(f)Special Right of Appointment of Directors for Certain Members. Commencing on a date within thirty (30) days following the Financing Closing, each Member who holds five thousand (5,000) or more Units, all of which were purchased by such Member from the Company during its initial public offering of equity securities filed with the Securities and Exchange Commission, shall be deemed an “Appointing Member” and shall be entitled to appoint one (1) Director for each block of 5,000 Units; provided, however, that no Appointing Member shall be entitled to appoint more than two (2) Directors regardless of the total number of Units owned and purchased in the initial public offering. So long as the

Appointing Member is the holder of five thousand (5,000) Units the Member shall retain its right to appoint a Director. Units held by an Affiliate or Related Party of a Member shall be included in the determination of whether the Member holds the requisite number of Units for purposes of this section and shall, together, be limited to the appointment of one (1) Director for each block of 5,000 Units subject to the maximum appointment of two (2) Directors regardless of the number of Units held by that Member, Affiliate or Related Party. Only Members who hold the requisite five thousand (5,000) or more Units are granted appointment rights hereunder. Accordingly, any Member who purchases Units that equal or exceed five thousand (5,000) Units other than those offered by the Company during the Company’s initial public offering of equity securities filed with the Securities and Exchange Commission, shall not be entitled to appoint any Directors, regardless of the amount of Units purchased by such Member. A Director appointed by a Member under this section shall serve indefinitely at the pleasure of the Member appointing him or her until a successor is appointed, or until the earlier death, resignation, or removal of the Director. Any Director appointed under this section may be removed for any reason by the Member appointing him or her, upon written notice to the Board of Directors, which notice may designate and appoint a successor Director to fill the vacancy, and which notice may be given at a meeting of the Board of Directors attended by the person appointed to fill the vacancy. Any such vacancy shall be filled within thirty (30) days of its occurrence by the Member having the right of appointment. In the event that the number of Units held by an Appointing Member falls below the threshold of five thousand (5,000) Units, the term of any Director appointed by such Member shall terminate and the Board of Directors shall have the right to appoint a successor and the Appointing Member’s whose right of appointment has terminated shall then elect Directors collectively with the other Members in accordance with Sections 5.3(a) and (c). A Director appointed by the Board of Directors under this Section shall serve indefinitely at the pleasure of the Board of Directors until the Board of Directors appoints a successor due to the death, resignation, or removal of the appointed Director. In the event that an Appointing Member transfers such Units, the appointment rights shall not transfer with the Units, but shall expire upon the date of transfer unless said transfer is to an Affiliate or Related Party of the Appointing Member (in which case the appointment rights shall survive said transfer). An Appointing Member and such Appointing Member’s Appointing Member Affiliates shall not be entitled to vote for the election (or removal) of Directors by the Members, as their right to representation exists in their right of appointment.

7.Section 5.13 of the Operating Agreement is removed in its entirety and is replaced by the following:

5.13Removal of Directors. The Members may remove a Director, with or without cause, at a meeting called for that purpose, if notice has been given that a purpose of the meeting is such removal, provided that an Appointing Member and such Appointing Member’s Appointing Member Affiliates shall not be entitled to vote on the removal of Directors by the Members, as their right to representation exists in their right of appointment.Notwithstanding the foregoing, the Board of Directors shall have the discretion to remove any Director who attends less than 75% of the Board’s meetings during any 12 month period as measured on a rotating basis.

I, Christine Marchand, do hereby certify that I am the duly elected, qualified, and acting Secretary of the Company, and further certify that the above amendment was duly adopted by a majority of the members of the Company at a meeting of the members held on December 19, 2013, in accordance with the provisions of the Company’s Operating Agreement.

	/s/ Christine Marchand
	Christine Marchand, Secretary
Approved:
/s/ Patrick Boyle
Patrick Boyle, Chairman of the Board

EX-10.32

SEVENTH AMENDMENT

TO MASTER LOAN AGREEMENT

This SEVENTH AMENDMENT TO MASTER LOAN AGREEMENT (this “Amendment”) is entered into as of November 29, 2013, by and between HOMELAND ENERGY SOLUTIONS, LLC, an Iowa limited liability company (“Borrower”), and HOME FEDERAL SAVINGS BANK, a federally chartered stock savings bank organized under the laws of the United States (“Lender”).

RECITALS

A. Borrower and Lender have entered into a Master Loan Agreement dated November 30, 2007, which was amended by the First Amendment to Master Loan Agreement dated August 29, 2008, the Second Amendment to Master Loan Agreement dated September 28, 2009, the Third Amendment to Master Loan Agreement dated September 10, 2010, the Fourth Amendment to Master Loan Agreement dated July 29, 2011, the Fifth Amendment to Master Loan Agreement dated September 9, 2011, and the Sixth Amendment to Master Loan Agreement dated April 30, 2013 (collectively, with all supplements, modifications and other amendments thereto, the “Loan Agreement”) under which Lender agreed to extend certain financial accommodations to Borrower.

B. Borrower has requested certain modifications to the Loan Agreement, which Lender is willing to do upon the terms and subject to the conditions set forth herein.

AGREEMENT

NOW THEREFORE, in consideration of the facts set forth in the foregoing Recitals, which the parties agree are true and correct, and in consideration for entering into this Amendment and the related documents to be executed concurrently herewith or pursuant hereto, if any, the parties agree as follows:

1.Amendments to Loan Agreement.

a.The following defined term as used in the Loan Agreement and the Loan Documents shall be amended, restated and replaced by the following:

“Maturity Date” means August 1, 2018.

b.Section 2.17 of the Loan Agreement is hereby amended, restated and replaced in its entirety by the following:

Section 2.17Reserved.

c.Section 5.01(e) of the Loan Agreement is hereby amended, restated and replaced in its entirety by the following:

(e)Tangible Net Worth. During the term of this Agreement, Borrower shall achieve and maintain Tangible Net Worth of not less than sixty percent (60%) measured at the end of each fiscal year of Borrower.

e.Section 5.01(f) of the Loan Agreement is hereby amended, restated and replaced in its entirety by the following:

(f)Reserved.

f.Section 5.01(g) of the Loan Agreement is hereby amended, restated and replaced in its entirety by the following:

(g)Fixed Charge Coverage Ratio. Maintain a Fixed Charge Coverage Ratio of not less than 1.25 to 1.00. Borrower’s compliance with this covenant will be tested annually using Borrower’s financial statements provided pursuant to Section 5.01(c).  Principal payments due and payable on the Term Revolving Loan in the final year of the term of such Loan shall be excluded from the definition of Current Portion of Long Term Debt and thereby shall not affect the calculation of Fixed Charge Coverage Ratio during that period.  Distributions made in compliance with the terms of this Agreement or otherwise approved by the Lender, and paid during a current period which were reflected as current liability on Borrower’s Financial Statements provided pursuant to Section 5.01(c) for a prior period(s) shall also be excluded from the definition of Distributions and shall not affect the calculation of Fixed Charge Coverage Ratio during that current period.

g.Section 5.01(s) of the Loan Agreement is hereby amended, restated and replaced in its entirety by the following:

(s) Reserved.

h.Section 5.02(b) of the Loan Agreement is hereby amended, restated and replaced in its entirety by the following:

(b) Distributions, etc. Declare or pay any dividends, purchase or otherwise acquire for value any of its membership interests (units) now or hereafter outstanding, or make any distribution of assets to its stockholders, members or general partners as such, or permit any of its subsidiaries to purchase or otherwise acquire for value any stock, membership interest or partnership interest of Borrower, provided, however, Borrower may: (i) declare and pay dividends or distributions payable in membership interests (units); (ii) purchase or otherwise acquire shares of the membership interests (units) of Borrower with the proceeds received from the issuance of new membership interests (units); (iii) (A) in each of Borrower’s 2013 and 2014 fiscal years (but not later than July 1 of the 2013 and 2014 calendar year) redeem certain outstanding shares of the membership interests (units) of Borrower with the proceeds of the Term Revolving Loan for an amount not to exceed $30,000,000 in the aggregate, and (B) declare and pay distributions in the aggregate, 40% of Borrower’s immediately preceding fiscal year’s Net Income (including Incentive Payments) (subsections (A) and (B) in this above are hereinafter, the “Allowed Distributions”); (iv) pay dividends or distributions which are immediately reinvested in Borrower (“Reinvestment Distributions”); (v) complete the transactions reflected on Schedule 4.01(a); and (vi) pay additional distributions in an amount reasonably acceptable to Lender (“Excess Distributions”), provided, however, that immediately prior to the proposed payment of any dividends or distributions permitted by this Section 5.02(b), or after giving effect thereto, no Default or Event of Default shall exist and provided that aggregate Distributions will not exceed 65% of Borrower’s

immediately preceding fiscal year’s Net Income (including Incentive Payments);

2.Limited Waiver. Lender waives any and all covenant violations or Events of Default that have occurred or could be deemed to have occurred under the Loan Agreement, (including under Sections 5.02(b), (i) or (k) of the Loan Agreement) as a result of Borrower entering into the transactions set forth in that certain Membership Unit Repurchase Agreement dated as of June 13, 2013 between Borrower and Steven J. Retterath.

3.Effect on Loan Agreement.Except as expressly amended by this Amendment, all of the terms of the Loan Agreement and other Loan Documents shall be unaffected by this Amendment and shall remain in full force and effect. Except as expressly stated herein, nothing contained in this Amendment shall be deemed to constitute a waiver of any rights of the Lender or to affect, modify, or impair any of the rights of the Lender under the Loan Agreement.

4.Conditions Precedent to Effectiveness of this Amendment. The obligations of the Lender hereunder are subject to the conditions precedent that Lender shall have received the following, in form and substance satisfactory to Lender:

a.this Amendment duly executed by Borrower;

b.all other documents, instruments, or agreements required to be delivered to Lender under the Loan Agreement and not previously delivered to Lender.

5. Representations and Warranties of Borrower. Borrower hereby agrees with, reaffirms, and acknowledges as follows:

a.The execution, delivery and performance by Borrower of this Amendment is within Borrower’s power, has been duly authorized by all necessary action, and does not contravene: (i) its articles of organization or operating agreement; or (ii) any law or any contractual restriction binding on or affecting Borrower; and does not result in or require the creation of any lien, security interest or other charge or encumbrance upon or with respect to any of its properties, except as otherwise permitted under the Loan Agreement; and

b.This Amendment is, and each other Loan Document to which Borrower is a party, when delivered, will be, legal, valid and binding obligations of Borrower enforceable against Borrower in accordance with their respective terms, except as may be limited by applicable bankruptcy, insolvency, reorganization, moratorium, or similar laws affecting the enforcement of creditor’s rights generally and by general principles of equity; and

c.All other representations, warranties and covenants contained in the Loan Agreement and the other Loan Documents are true and correct and in full force and effect as of the date of this Amendment.

6. Counterparts. It is understood and agreed that this Amendment may be executed in several counterparts each of which shall, for all purposes, be deemed an original and all of which, taken together, shall constitute one and the same agreement even though all of the parties hereto may not have executed the same counterpart of this Amendment. Electronic delivery of an executed counterpart of a signature page to this Amendment shall be effective as delivery of an original executed counterpart to this Amendment.

[SIGNATURE PAGE IMMEDIATELY FOLLOWS]

SIGNATURE PAGE TO

SEVENTH AMENDMENT TO MASTER LOAN AGREEMENT

BY AND BETWEEN

HOMELAND ENERGY SOLUTIONS, LLC

AND

HOME FEDERAL SAVINGS BANK

DATED: November 29, 2013

IN WITNESS WHEREOF, the parties hereto have caused this Seventh Amendment to Master Loan Agreement to be executed as of the date first above written.

BORROWER:

HOMELAND ENERGY SOLUTIONS, LLC,

an Iowa limited liability company

/s/ Walter Wendland

By: Walter Wendland

Its: President/CEO

STATE OF IOWA )

) ss.

COUNTY OF Cerro Gordo )

On this 29 day of November, 2013, before me a Notary Public within and for said County, personally appeared Walter Wendland, to me known, who being by me duly sworn, did say that he is the President/CEO of Homeland Energy Solutions, LLC, the limited liability company named in the foregoing instrument, and that said instrument was signed on behalf of said company by authority of its board and as the free act and deed of said company.

SEAL WHITNEY WILSON Commission Number 780939 MY COMM. EXP. 10/28/16	/s/ Whitney Wilson
	Notary Public

LENDER:

HOME FEDERAL SAVINGS BANK, a

federally chartered stock savings bank organized

under the laws of the United States

/s/ Eric Oftedahl

By: Eric Oftedahl

Its: Vice President

EX-10.33

FIRST AMENDMENT TO

SECOND SUPPLEMENT

TO MASTER LAOAN AGREEMENT

This FIRST AMENDMENT TO SECOND SUPPLEMENT TO MASTER LAOAN AGREEMENT (this “Amendment”) is entered into as of November 29, 2013, by and between HOMELAND ENERGY SOLUTIONS, LLC, an Iowa limited liability company (“Borrower”), and HOME FEDERAL SAVINGS BANK, a federally chartered stock savings bank organized under the laws of the United States (“Lender”).

RECITALS

A.Borrower and Lender have entered into a Master Loan Agreement dated November 30, 2007, which was amended by the First Amendment to Master Loan Agreement dated August 29, 2008, the Second Amendment to Master Loan Agreement dated September 28, 2009, the Third Amendment to Master Loan Agreement dated September 10, 2010, the Fourth Amendment to Master Loan Agreement dated July 29, 2011, the Fifth Amendment to Master Loan Agreement dated September 9, 2011, the Sixth Amendment to Master Loan Agreement dated April 30, 2013, and the Seventh Amendment to Master Loan Agreement of even date herewith (collectively, with all supplements, modifications and amendments thereto, the “MLA”) under which Lender agreed to extend certain financial accommodations to Borrower.

B.Borrower and Lender have also entered into a Second Supplement to Master Loan Agreement dated November 30, 2007 (the “Second Supplement”).

C.Borrower has requested that Lender make certain modifications to the Second Supplement, which Lender is willing to do upon the terms and subject to the conditions set forth herein.

AGREEMENT

NOW THEREFORE, in consideration of the facts set forth in the foregoing Recitals, which the parties agree are true and correct, and in consideration for entering into this Amendment and the related documents to be executed concurrently herewith or pursuant hereto, if any, the parties agree as follows:

1.Amendments to Second Supplement.

a.Section 3 of the Second Supplement is hereby amended, restated and replaced in its entirety by the following:

3. Term Revolving Loan Commitment. Lender agrees, on the terms and conditions set forth in the MLA, the Term Revolving Note, and this Second Supplement to make one or more advances to Borrower, during the period beginning on August [___], 2013 and ending on the Business Day immediately preceding the Maturity Date (the “Term Revolving Loan Termination Date”), in an aggregate principal amount outstanding at any one time not to exceed $20,000,000.00 (the “Term Revolving Loan Commitment”). The Term Revolving Loan Commitment shall expire at 12:00 noon Central time on August 1, 2018 (the “Maturity Date”). Under the Term Revolving Loan Commitment, amounts borrowed and repaid or prepaid may be reborrowed at any time prior to and including the Term Revolving Loan Termination Date provided, however, that at no time shall the sum of the Outstanding Revolving Advances exceed $20,000,000.00.

b.Section 4 of the Second Supplement is hereby amended, restated and replaced in its entirety by the following:

4. Purpose. Advances under the Term Revolving Loan may be used for Borrower’s cash and inventory management purposes, including closing costs and fees associated with the Term

Revolving Loan, and redemptions of membership interests (units) of the Borrower permitted under Section 5.02(b) of the MLA. The Borrower agrees that the proceeds of the Term Revolving Loan are to be used only for the purposes set forth in this Section 4.

c.Section 8 of the Second Supplement is hereby amended, restated and replaced in its entirety by the following:

8. Interest Rate. Subject to the provisions of Sections 2.07 and 2.08 of the MLA and Sections 9 and 12 of this Second Supplement, the Term Revolving Loan shall bear interest at a rate equal to the LIBOR Rate plus 310 basis points. The computation of interest, amortization, maturity and other terms and conditions of the Term Revolving Loan shall be as provided in the Term Revolving Note, provided, however, in no event shall the applicable rate exceed the Maximum Rate.

d.The following his hereby added as Section 14 of the Second Supplement:

14. Annual Facility Fee. In addition to all other fees, costs and expenses due to the Lender under this Supplement, the Term Revolving Note, the MLA and the other Loan Documents, Borrower shall annually remit to the Lender on or before August 1 of each year, an annual loan facility fee on the Term Revolving Loan in the amount of $35,000.00.

2.Effect on Second Supplement.Except as expressly amended by this Amendment, all of the terms of the Second Supplement, the MLA, and the other Loan Documents (as defined in the MLA) shall be unaffected by this Amendment and shall remain in full force and effect. Nothing contained in this Amendment shall be deemed to constitute a waiver of any rights of the Lender or to affect, modify, or impair any of the rights of the Lender under the Second Supplement, the MLA, or any other Loan Document.

3.Conditions Precedent to Effectiveness of this Amendment. The obligations of the Lender hereunder are subject to the conditions precedent that Lender shall have received the following, in form and substance satisfactory to Lender:

a.this Amendment duly executed by Borrower;

b.the Allonge to the Term Revolving Note duly executed by Borrower; and

c.all other documents, instruments, or agreements required to be delivered to Lender under the MLA and not previously delivered to Lender.

4. Representations and Warranties of Borrower. Borrower hereby agrees with, reaffirms, and acknowledges as follows:

a.The execution, delivery and performance by Borrower of this Amendment is within Borrower’s power, has been duly authorized by all necessary action, and does not contravene: (i) its articles of organization or operating agreement; or (ii) any law or any contractual restriction binding on or affecting Borrower; and does not result in or require the creation of any lien, security interest or other charge or encumbrance upon or with respect to any of its properties, except as otherwise permitted under the MLA; and

b.This Amendment is, and each other Loan Document to which Borrower is a party, when delivered, will be, legal, valid and binding obligations of Borrower enforceable against Borrower in accordance with their respective terms, except as may be limited by applicable bankruptcy, insolvency, reorganization, moratorium, or similar laws affecting the enforcement of creditor’s rights generally and by general principles of equity; and

c.All other representations, warranties and covenants contained in the MLA and Second Supplement and the other Loan Documents are true and correct and in full force and effect as of the date of this Amendment.

5. Counterparts. It is understood and agreed that this Amendment may be executed in several counterparts each of which shall, for all purposes, be deemed an original and all of which, taken together, shall constitute one and the same agreement even though all of the parties hereto may not have executed the same counterpart of this Amendment. Electronic delivery of an executed counterpart of a signature page to this Amendment shall be effective as delivery of an original executed counterpart to this Amendment.

[Remainder of Page Intentionally Blank. Signature Page Immediately Follows.]

SIGNATURE PAGE TO

FIRST AMENDMENT

TO SECOND SUPPLEMENT

TO MASTER LOAN AGREEMENT

BY AND BETWEEN

HOMELAND ENERGY SOLUTIONS, LLC

AND

HOME FEDERAL SAVINGS BANK

DATED: November 29, 2013

IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed as of the date first above written.

BORROWER:

HOMELAND ENERGY SOLUTIONS, LLC,

an Iowa limited liability company

/s/ Walter Wendland

By: Walter Wendland

Its: President/CEO

STATE OF IOWA )

) ss.

COUNTY OF Cerro Gordo )

On this 29 day of November, 2013, before me a Notary Public within and for said County, personally appeared Walter Wendland, to me known, who being by me duly sworn, did say that he is the President/CEO of Homeland Energy Solutions, LLC, the limited liability company named in the foregoing instrument, and that said instrument was signed on behalf of said company by authority of its board and as the free act and deed of said company.

SEAL WHITNEY WILSON Commission Number 780939 MY COMM. EXP. 10/28/16	/s/ Whitney Wilson
	Notary Public

LENDER:

HOME FEDERAL SAVINGS BANK, a

federally chartered stock savings bank organized

under the laws of the United States

/s/ Eric Oftedahl

By: Eric Oftedahl

Its: Vice President

EX-10.34

EIGHTH AMENDMENT

TO MASTER LOAN AGREEMENT

This EIGHTH AMENDMENT TO MASTER LOAN AGREEMENT (this “Amendment”) is entered into as of February 28, 2014, by and between HOMELAND ENERGY SOLUTIONS, LLC, an Iowa limited liability company (“Borrower”), and HOME FEDERAL SAVINGS BANK, a federally chartered stock savings bank organized under the laws of the United States (“Lender”).

RECITALS

A. Borrower and Lender have entered into a Master Loan Agreement dated November 30, 2007, which was amended by the First Amendment to Master Loan Agreement dated August 29, 2008, the Second Amendment to Master Loan Agreement dated September 28, 2009, the Third Amendment to Master Loan Agreement dated September 10, 2010, the Fourth Amendment to Master Loan Agreement dated July 29, 2011, the Fifth Amendment to Master Loan Agreement dated September 9, 2011, the Sixth Amendment to Master Loan Agreement dated April 30, 2013, and the Seventh Amendment to Master Loan Agreement dated November 29, 2013 (collectively, with all supplements, modifications and other amendments thereto, the “Loan Agreement”) under which Lender agreed to extend certain financial accommodations to Borrower.

B. Borrower has requested certain modifications to the Loan Agreement, which Lender is willing to do upon the terms and subject to the conditions set forth herein.

AGREEMENT

NOW THEREFORE, in consideration of the facts set forth in the foregoing Recitals, which the parties agree are true and correct, and in consideration for entering into this Amendment and the related documents to be executed concurrently herewith or pursuant hereto, if any, the parties agree as follows:

1.Amendments to Loan Agreement.

a.The following defined term as used in the Loan Agreement and the Loan Documents shall be amended, restated and replaced by the following:

“2014 Term Loan” means that certain Term Loan from Lender to Borrower in the amount of $15,000,000.00 pursuant to the terms and conditions provided for in this Agreement, the 2014 Term Loan Note, and the Fourth Supplement.

“2014 Term Loan Note” means that certain promissory note to be executed and delivered to Lender by Borrower pursuant to the terms and conditions provided for in this Agreement and the Fourth Supplement.

“Loan/Loans” means and includes the Term Loan, the 2014 Term Loan, the Term Revolving Loan, and any other financial accommodations extended to Borrower by Lender pursuant to the terms of this Agreement and any Supplement.

“2014 Term Loan Maturity Date” means March 1, 2019.

“Note/Notes” means and includes the Construction Note, the 2014 Term Note, the Term Revolving Note and all other promissory notes executed and delivered to Lender by Borrower pursuant to the terms of this Agreement and any Supplement as the same may be amended, modified, supplemented, extended or restated from time to time.

“Term Loan” means any amortizing loan with a maturity of greater than one year provided by Lender to Borrower pursuant to the terms and conditions of this Agreement and Supplements, including without limitation the Loans extended to the Borrower under the First Supplement (sometimes herein as the context requires the “Term Loan”), and under the Fourth Supplement (sometimes herein as the context requires the “2014 Term Loan”).

b.Section 2.04 of the Loan Agreement is hereby amended, restated and replaced in its entirety by the following:

Section 2.04.2014 Term Loan. Subject to the terms and conditions of this Agreement, the Fourth Supplement, and the 2014 Term Loan Note, and in reliance upon the representations and warranties set forth in this Agreement, Lender has agreed to lend to Borrower and Borrower has agreed to borrow from Lender as of February 28, 2014, an amount not to exceed $15,000,000.00. Such amount shall be made available by Lender pursuant to the terms and conditions set forth in this Agreement, the 2014 Term Loan Note, and the Fourth Supplement.

c.Section 5.02(b) of the Loan Agreement is hereby amended, restated and replaced in its entirety by the following:

(b) Distributions, etc. Declare or pay any dividends, purchase or otherwise acquire for value any of its membership interests (units) now or hereafter outstanding, or make any distribution of assets to its stockholders, members or general partners as such, or permit any of its subsidiaries to purchase or otherwise acquire for value any stock, membership interest or partnership interest of Borrower, provided, however, Borrower may: (i) declare and pay dividends or distributions payable in membership interests (units); (ii) purchase or otherwise acquire shares of the membership interests (units) of Borrower with the proceeds received from the issuance of new membership interests (units); (iii) (A) in each of Borrower’s 2014 and 2015 fiscal years (but not later than July 1 of the 2014 and 2015 calendar year) redeem certain outstanding shares of the membership interests (units) of Borrower with the proceeds of the 2014 Term Loan or the Term Revolving Loan for an amount not to exceed $30,000,000 in the aggregate, and (B) declare and pay distributions in the aggregate, 40% of Borrower’s immediately preceding fiscal year’s Net Income (including Incentive Payments) (subsections (A) and (B) in this above are hereinafter, the “Allowed Distributions”); (iv) pay dividends or distributions which are immediately reinvested in Borrower (“Reinvestment Distributions”); (v) complete the transactions reflected on Schedule 4.01(a); and (vi) after payment of the Excess Cash Flow Payment required by Section 2.17, if any, pay additional distributions in an amount reasonably acceptable to Lender (“Excess Distributions”), provided, however, that immediately prior to the proposed payment of any dividends or distributions permitted by this Section 5.02(b), or after giving effect thereto, no Default or Event of Default shall exist and provided that aggregate Distributions will not exceed 65% of Borrower’s immediately preceding fiscal year’s Net Income (including Incentive Payments);

2.Effect on Loan Agreement. Except as expressly amended by this Amendment, all of the terms of the Loan Agreement and other Loan Documents shall be unaffected by this Amendment and shall remain in full force and effect. Except as expressly stated herein, nothing contained in this Amendment shall be deemed to constitute a waiver of any rights of the Lender or to affect, modify, or impair any of the rights of the Lender under the Loan Agreement.

3.Conditions Precedent to Effectiveness of this Amendment. The obligations of the Lender hereunder are subject to the conditions precedent that Lender shall have received the following, in form and substance satisfactory to Lender:

a.this Amendment duly executed by Borrower;

b.the Fourth Supplement to Master Loan Agreement of even date herewith, duly executed by Borrower (the “Fourth Supplement”);

c.the 2014 Term Loan Note duly executed by Borrower;

d.the Second Amended and Restated Mortgage duly executed by Borrower; and

e.all other documents, instruments, or agreements required to be delivered to Lender under the Loan Agreement and not previously delivered to Lender.

4. Representations and Warranties of Borrower. Borrower hereby agrees with, reaffirms, and acknowledges as follows:

a.The execution, delivery and performance by Borrower of this Amendment is within Borrower’s power, has been duly authorized by all necessary action, and does not contravene: (i) its articles of organization or operating agreement; or (ii) any law or any contractual restriction binding on or affecting Borrower; and does not result in or require the creation of any lien, security interest or other charge or encumbrance upon or with respect to any of its properties, except as otherwise permitted under the Loan Agreement; and

b.This Amendment is, and each other Loan Document to which Borrower is a party, when delivered, will be, legal, valid and binding obligations of Borrower enforceable against Borrower in accordance with their respective terms, except as may be limited by applicable bankruptcy, insolvency, reorganization, moratorium, or similar laws affecting the enforcement of creditor’s rights generally and by general principles of equity; and

c.All other representations, warranties and covenants contained in the Loan Agreement and the other Loan Documents are true and correct and in full force and effect as of the date of this Amendment.

5. Counterparts. It is understood and agreed that this Amendment may be executed in several counterparts each of which shall, for all purposes, be deemed an original and all of which, taken together, shall constitute one and the same agreement even though all of the parties hereto may not have executed the same counterpart of this Amendment. Electronic delivery of an executed counterpart of a signature page to this Amendment shall be effective as delivery of an original executed counterpart to this Amendment.

[SIGNATURE PAGE IMMEDIATELY FOLLOWS]

SIGNATURE PAGE TO

EIGHTH AMENDMENT TO MASTER LOAN AGREEMENT

BY AND BETWEEN

HOMELAND ENERGY SOLUTIONS, LLC

AND

HOME FEDERAL SAVINGS BANK

DATED: February 28, 2014

IN WITNESS WHEREOF, the parties hereto have caused this Eighth Amendment to Master Loan Agreement to be executed as of the date first above written.

BORROWER:

HOMELAND ENERGY SOLUTIONS, LLC,

an Iowa limited liability company

/s/ Walter Wendland

By: Walter Wendland

Its: President/CEO

STATE OF IOWA )

) ss.

COUNTY OF CERRO GORDO )

On this 24 day of February, 2014, before me a Notary Public within and for said County, personally appeared Walter Wendland, to me known, who being by me duly sworn, did say that he is the President/CEO of Homeland Energy Solutions, LLC, the limited liability company named in the foregoing instrument, and that said instrument was signed on behalf of said company by authority of its board and as the free act and deed of said company.

SEAL CHRISTY MARCHAND Commission Number 709988 MY COMM. EXP. 5-15-16	/s/ Christy Marchand
	Notary Public

LENDER:

HOME FEDERAL SAVINGS BANK, a

federally chartered stock savings bank organized

under the laws of the United States

/s/ Eric Oftedahl

By: Eric Oftedahl

Its: Vice President

EX-10.35

FOURTH SUPPLEMENT

TO MASTER LOAN AGREEMENT

(2014 TERM LOAN)

THIS FOURTH SUPPLEMENT TO MASTER LOAN AGREEMENT (this “Supplement”) dated as of February 28, 2014, is between HOME FEDERAL SAVINGS BANK (the “Lender”) and HOMELAND ENERGY SOLUTIONS, LLC, an Iowa limited liability company (the “Borrower”) and supplements and incorporates all of the provisions of the MLA and the 2014 Term Loan Note (each as defined below).

RECITALS

A. Borrower and Lender have entered into a Master Loan Agreement dated November 30, 2007, which was amended by the First Amendment to Master Loan Agreement dated August 29, 2008, the Second Amendment to Master Loan Agreement dated September 28, 2009, the Third Amendment to Master Loan Agreement dated September 10, 2010, the Fourth Amendment to Master Loan Agreement dated July 29, 2011, the Fifth Amendment to Master Loan Agreement dated September 9, 2011, the Sixth Amendment to Master Loan Agreement dated April 30, 2013, the Seventh Amendment to Master Loan Agreement dated November 29, 2013, and the Eighth Amendment to Master Loan Agreement of even date herewith (collectively, with all supplements, modifications and other amendments thereto, the “MLA”) under which Lender agreed to extend certain financial accommodations to Borrower.

B.Borrower has requested Lender extend to it an additional term loan under the MLA, which Lender has consented to do under the terms and conditions set forth in this Supplement, the 2014 Term Loan Note, and the MLA.

NOW, THEREFORE, FOR VALUE RECEIVED,

1.Definitions. Capitalized terms used and not otherwise defined in this Supplement shall have the meanings attributed to such terms in the MLA. As used in this Supplement, the following terms shall have the following meanings:

“2014 Term Loan” means the term loan extended to the Borrower by the Lender under the 2014 Term Loan Note, this Supplement, and the MLA, as the same have been or may be amended, restated, extended, replaced or otherwise modified from time to time.

“2014 Term Loan Commitment” means an amount not to exceed $15,000,000.00.

“2014 Term Loan Maturity Date” means March 1, 2019.

“2014 Term Loan Note” means that certain Term Note of even date herewith in the original principal amount of $15,000,000.00 evidencing the 2014 Term Loan, as the same may be amended, restated, extended, replace or otherwise modified from time to time.

2.2014 Term Loan. On the terms and conditions set forth in the MLA, this Supplement, and the 2014 Term Loan Note, Lender agrees on the date of this Supplement to make a term loan to the Borrower in an amount not to exceed $15,000,000.00.

a. Term. The term of the 2014 Term Loan shall run for a period beginning on the date of this Supplement and end on the 2014 Term Loan Maturity Date. On the 2014 Term Loan Maturity Date, the unpaid principal balance of the 2014 Term Loan, all accrued and unpaid interest

thereon, and any and all other amounts due and owing hereunder or under any other Loan Document relating to the 2014 Term Loan shall be due and payable in full.

b. Purpose. The proceeds of the 2014 Term Loan may be used by Borrower for the redemption by the Borrower of all of the issued and outstanding limited liability company interests of the Borrower owned by Steve J. Retterath. The Borrower agrees that the proceeds of the 2014 Term Loan are to be used only for the purposes set forth in this Section 2(b).

c. Interest Rate. Subject to the terms and conditions contained in the MLA, the 2014 Term Loan Note, and this Supplement, the 2014 Term Loan shall bear interest at a variable rate per annum equal to the LIBOR Rate plus 310 basis points. The computation of interest, amortization, maturity and other terms and conditions of the 2014 Term Loan shall be as provided in the MLA and the 2014 Term Loan Note, provided, however, that in no event shall the applicable rate of interest on the 2014 Term Loan exceed the Maximum Rate.

d. Payments. Beginning on April 1, 2014, and continuing on the first (1st) day of each month thereafter (each a “Monthly Payment Date”), Borrower shall make equal monthly payments of principal and accrued interest on the 2014 Term Loan in an amount equal to $271,614.28 per month, or such greater or lesser amount determined by the Lender to fully amortize the outstanding principal balance of the 2014 Term Loan over the period of five (5) years from the date of the 2014 Term Loan Note. The outstanding principal balance of the 2014 Term Loan, together with all accrued and unpaid interest, if not paid sooner, shall be due and payable in full on the 2014 Term Loan Maturity Date. All payments and prepayments, if any, shall at the option of the Lender be applied first to any unpaid collection costs, then to late charges, then to accrued and unpaid interest, and then to the outstanding principal balance of the 2014 Term Loan.

e. Prepayment. The 2014 Term Loan may be prepaid in whole or in part at any time at the option of the Borrower without penalty or premium, except as otherwise provided in the MLA.

f. Fees. In addition to all other fees, costs and expenses due to the Lender under this Supplement, the 2014 Term Loan Note, the MLA and the other Loan Documents, Borrower shall remit to the Lender on the closing of the 2014 Term Loan a loan facility fee in the amount of $60,000.00.

3.Default Interest. In addition to the rights and remedies set forth in the MLA: (i) if the Borrower fails to make any payment to Lender when due, then at Lender’s option in each instance, such obligation or payment shall bear interest from the date due to the date paid at 2% per annum in excess of the rate of interest that would otherwise be applicable to such obligation or payment; (ii) upon the occurrence and during the continuance of an Event of Default beyond any applicable cure period, if any, at Lender’s option in each instance, the unpaid balances of the Loan shall bear interest from the date of the Event of Default or such later date as Lender shall elect at 2% per annum in excess of the rate of interest that would otherwise be in effect on the Loan under the terms of the 2014 Term Loan Note; (iii) after the maturity of the Loan, whether by reason of acceleration or otherwise, the unpaid principal balance of the 2014 Term Loan (including without limitation, principal, interest, fees and expenses) shall automatically bear interest at 2% per annum in excess of the rate of interest that would otherwise be in effect on the Loan under the terms of the 2014 Term Loan Note. Interest payable at the Default Rate shall be payable from time to time on demand or, if not sooner demanded, on the last day of each calendar month.

4.Late Charge. If any payment of principal or interest due under this Supplement or the 2014 Term Loan Note is not paid within ten (10) days of the due date thereof, the Borrower shall pay, in addition to such amount, a late charge equal to five percent (5%) of the amount of such payment.

5. Changes in Law Rendering Certain LIBOR Rate Loans Unlawful. In the event that any change in any applicable law (including the adoption of any new applicable law) or any change in the interpretation of any applicable law by any judicial, governmental or other regulatory body charged with the interpretation, implementation or administration thereof, should make it (or in the good-faith judgment of Lender should raise a substantial question as to whether it is) unlawful for Lender to make, maintain or fund LIBOR Rate loans, then: (a) Lender shall promptly notify each of the other parties hereto; and (b) the obligation of Lender to make LIBOR Rate loans of such type shall, upon the effectiveness of such event, be suspended for the duration of such unlawfulness. During the period of any suspension, Lender shall make loans to Borrower that are deemed lawful and that as closely as possible reflect the terms of the MLA.

6.Maximum Amount Limitation. Anything in the MLA, this Supplement, or the other Loan Documents to the contrary notwithstanding, Borrower shall not be required to pay unearned interest on the 2014 Term Loan Note or any of the Loan Obligations, or ever be required to pay interest on the 2014 Term Loan Note or any of the Loan Obligations at a rate in excess of the Maximum Rate. If the effective rate of interest which would otherwise be payable under the MLA, this Supplement, the 2014 Term Loan Note, or any of the other Loan Documents would exceed the Maximum Rate, if any, then the rate of interest which would otherwise be contracted for, charged, or received under the MLA, this Supplement, the 2014 Term Loan Note, or any of the other Loan Documents shall be reduced to the Maximum Rate. If any unearned interest or discount or property that is deemed to constitute interest (including, without limitation, to the extent that any of the fees payable by Borrower for the Loan Obligations to Lender under the MLA, this Supplement, the 2014 Term Loan Note, or any of the other Loan Documents are deemed to constitute interest) is contracted for, charged, or received in excess of the Maximum Rate, then such interest in excess of the Maximum Rate shall be deemed a mistake and canceled, shall not be collected or collectible, and if paid nonetheless, shall, at the option of the holder of the 2014 Term Loan Note, be either refunded to Borrower or credited on the principal of the 2014 Term Loan Note. It is further agreed that, without limitation of the foregoing and to the extent permitted by applicable law, all calculations of the rate of interest or discount contracted for, charged or received by Lender under the 2014 Term Loan Note, or under any of the Loan Documents, that are made for the purpose of determining whether such rate exceeds the Maximum Rate applicable to Lender, if any, shall be made, to the extent permitted by applicable laws (now or hereafter enacted), by amortizing, prorating and spreading during the period of the full term of the Advances evidenced by the 2014 Term Loan Note, and any renewals thereof all interest at any time contracted for, charged or received by Lender in connection therewith.

7.Security. The Borrower’s obligations hereunder and, to the extent related thereto, the MLA, shall be secured as provided in the MLA and the other Loan Documents.

8.Events of Default. The occurrence and continuance of an Event of Default under the MLA or under any other Loan Document is an “Event of Default” under this Supplement and the 2014 Term Loan Note.

9.Remedies. In addition to the remedies and relief set forth herein, upon the occurrence of an Event of Default or at any time thereafter, Lender may, at its option, exercise any or all of the rights and remedies set forth in the MLA, the Security Agreement, the Mortgage, and the other Loan Documents. The Lender may also take any action or commence any proceeding at law or in equity which it deems advisable for the protection of its interests to collect and enforce repayment of the 2014 Term Loan.

10.Governing Law. This Supplement shall be governed by, construed and enforced in accordance with the internal laws of the State of Minnesota without regard to its conflicts of laws principles.

11. Execution of Counterparts. This Supplement may be executed in any number of counterparts and on telecopy counterparts, each of which when so executed shall be deemed to be an original and all of which when taken together shall constitute but one and the same agreement.

[SIGNATURE PAGE ON FOLLOWING PAGE]

SIGNATURE PAGE FOR

FOURTH SUPPLEMENT

TO MASTER LOAN AGREEMENT

(2014 TERM LOAN)

BY AND BETWEEN

HOMELAND ENERGY SOLUTIONS, LLC

AND

HOME FEDERAL SAVINGS BANK

DATED: February 28, 2014

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

HOMELAND ENERGY SOLUTIONS, LLC, an Iowa limited liability company	HOME FEDERAL SAVINGS BANK, a federally chartered stock savings bank organized under the laws of the United States
By: /s/ Walter W. Wendland	By: /s/ Eric Oftedahl
Walter Wendland	Eric Oftedahl
Title: President/CEO	Its: Vice President

STATE OF IOWA )

) ss.

COUNTY OF CERRO GORDO)

On this 24 day of February, 2014, before me a Notary Public within and for said County, personally appeared Walter Wendland, to me known, who being by me duly sworn, did say that he is the President of Homeland Energy Solutions, LLC, the limited liability company named in the foregoing instrument, and that said instrument was signed on behalf of said company by authority of its board and as the free act and deed of said company.

SEAL CHRISTY MARCHAND Commission Number 709988 MY COMM. EXP. 5-15-16	/s/ Christy Marchand
	Notary Public

EX-10.36

TERM NOTE

$15,000,000.00February 28, 2014

1.FOR VALUE RECEIVED, HOMELAND ENERGY SOLUTIONS, LLC, an Iowa limited liability company (“Borrower”), hereby promises to pay to the order of HOME FEDERAL SAVINGS BANK, a federally chartered stock savings bank organized under the laws of the United States (“Lender”), the principal sum of Fifteen Million and No/100ths ($15,000,000.00) Dollars with interest thereon as set forth herein from the date of this Term Note (this “Note”) until fully paid in lawful money of the United States and immediately available funds. This Note is issued pursuant to the terms and provisions of that certain Master Loan Agreement dated November 30, 2007 (as amended, modified, supplemented, extended or restated from time to time, the “MLA”), and pursuant to that certain Fourth Supplement to the MLA, of even date herewith, each by and between Lender and Borrower (as amended, modified, supplemented, extended or restated from time to time, the “Fourth Supplement”). All capitalized terms used and not defined herein shall have the meanings assigned to them in the MLA or the Fourth Supplement.

2.The outstanding principal balance of this Note shall bear interest at a variable rate per annum equal to the LIBOR Rate plus 310 basis points.

3.“LIBOR Rate” (London Interbank Offered Rate) means the rate (rounded upward to the nearest sixteenth and adjusted for reserves required on Eurocurrency Liabilities (as hereinafter defined) for banks subject to FRB Regulation D (as hereinafter defined) or required by any other federal law or regulation), quoted by the British Bankers Association (the “BBA”) at 11:00 a.m. London time two Banking Days (as hereinafter defined) before the commencement of the Interest Period for the offering of U.S. Dollar deposits in the London interbank market for an Interest Period of one month, as published by Bloomberg or another major information vendor listed on BBA’s official website. “Banking Day” shall mean a day on which Lender is open for business, dealings in U.S. dollar deposits are being carried out in the London interbank market, and banks are open for business in New York City and London, England. “Eurocurrency Liabilities” has the meaning as set forth in FRB Regulation D. “FRB Regulation D” means Regulation D as promulgated by the Board of Governors of the Federal Reserve System, 12 CFR Part 204, as amended from time to time.

4.The rate of interest due hereunder shall initially be determined as of the date hereof and shall thereafter be adjusted, as and when, the LIBOR Rate changes. All such adjustments to the rate of interest shall be made and become effective as of the first day of the month following the date of any change in the LIBOR Rate and shall remain in effect until and including the day immediately preceding the next such adjustment (each such day hereinafter being referred to as an “Adjustment Date”). All such adjustments to said rate shall be made and become effective as of the Adjustment Date, and said rate as adjusted shall remain in effect until and including the day immediately preceding the next Adjustment Date. Interest hereunder shall be computed on the basis of a year of three hundred sixty (360) days, but charged for actual days principal is outstanding.

5.Beginning on April 1, 2014, and continuing on the first (1st) day of each month thereafter (each a “Monthly Payment Date”), Borrower shall make equal monthly payments of principal and accrued interest in an amount equal to $271,617.28 per month, or such greater or lesser amount determined by the Lender to fully amortize the outstanding principal balance of this Note over the period of five (5) years from the date of this Note. The outstanding principal balance of this Note, together with all accrued interest, if not paid sooner, shall be due and payable in full on the Maturity Date.

6.The outstanding principal balance hereof, together with all accrued interest, if not paid sooner,

shall be due and payable in full on March 1, 2019 (the “Maturity Date”).

7.Borrower may, at anytime and from time to time, upon thirty (30) days advance written notice to Lender, prepay the outstanding principal amount of this Note in whole or in part with accrued interest to the date of such prepayment on the amount prepaid, without penalty or premium. This Note is subject to mandatory prepayment, at the option of Lender, as provided in the MLA. All payments and prepayments shall, at the option of Lender, be applied first to any costs of collection, second to any late charges, third to accrued interest and the remainder thereof to principal.

8.In addition to the rights and remedies set forth in the MLA and the Fourth Supplement: (i) if Borrower fails to make any payment to Lender when due under this Note, then at Lender’s option in each instance, such obligation or payment shall bear interest from the date due to the date paid at 2% per annum in excess of the rate of interest that would otherwise be applicable to such obligation or payment under this Note; (ii) upon the occurrence and during the continuance of an Event of Default beyond any applicable cure period, if any, at Lender’s option in each instance, the unpaid balances under this Note shall bear interest from the date of the Event of Default or such later date as Lender shall elect at 2% per annum in excess of the rate(s) of interest that would otherwise be in effect under the terms of this Note; (iii) after the Maturity Date, whether by reason of acceleration or otherwise, the unpaid principal balance of this Note (including without limitation, principal, interest, fees and expenses) shall automatically bear interest at 2% per annum in excess of the rate of interest that would otherwise be in effect under this Note. Interest payable at the Default Rate shall be payable from time to time on demand or, if not sooner demanded, on the last day of each calendar month.

9.If Borrower fails to make any payment to Lender within ten (10) days of the due date thereof, Borrower shall, in addition to such amount, pay a late charge equal to five percent (5%) of the amount of such payment.

10.This Note is secured by, among other instruments, a Mortgage, Security Agreement and Financing Statement covering various parcels of real property, fixtures, and personal property located in Chickasaw County, Iowa (as amended, modified, supplemented, extended or restated from time to time, the “Mortgage”). In the event any such security is found to be invalid for whatever reason, such invalidity shall constitute an event of default hereunder. All of the agreements, conditions, covenants, provisions, and stipulations contained in the Mortgage, or any instrument securing this Note are hereby made a part of this Note to the same extent and with the same force and effect as if they were fully set forth herein. It is agreed that time is of the essence of this Note.

11.Upon the occurrence at any time of an Event of Default or at any time thereafter, the outstanding principal balance hereof plus accrued interest hereon plus all other amounts due hereunder shall, at the option of Lender, be immediately due and payable, without notice or demand and Lender shall be entitled to exercise all remedies provided in this Note, the MLA, the Fourth Supplement or under any other Loan Document.

12.Upon the occurrence at any time of an Event of Default or at any time thereafter, Lender shall have the right to set off any and all amounts due hereunder by Borrower to Lender against any indebtedness or obligation of Lender to Borrower.

13.Borrower promises to pay all reasonable costs of collection of this Note, including, but not limited to, reasonable attorneys’ fees paid or incurred by Lender on account of such collection, whether or not suit is filed with respect thereto and whether or not such costs are paid or incurred, or to be paid or incurred, prior to or after the entry of judgment.

14.Demand, presentment, protest and notice of nonpayment and dishonor of this Note are hereby waived.

15.This Note shall be governed by and construed in accordance with the laws of the State of Minnesota.

16.Borrower hereby irrevocably submits to the jurisdiction of any Minnesota state court or federal court over any action or proceeding arising out of or relating to this Note, the MLA and any instrument, agreement or document related hereto or thereto, and Borrower hereby irrevocably agrees that all claims in respect of such action or proceeding may be heard and determined in such Minnesota state or federal court. Borrower hereby irrevocably waives, to the fullest extent it may effectively do so, the defense of an inconvenient forum to the maintenance of such action or proceeding. Nothing in this Note shall affect the right of Lender to bring any action or proceeding against Borrower or its property in the courts of any other jurisdiction to the extent permitted by law.

HOMELAND ENERGY SOLUTIONS, LLC,

an Iowa limited liability company

/s/ Walter Wendland            

By: Walter Wendland

Its: President/CEO

STATE OF IOWA )

) ss.

COUNTY OF CERRO GORDO )

On this 24 day of February, 2014, before me a Notary Public within and for said County, personally appeared Walter Wendland, to me known, who being by me duly sworn, did say that he is the President/CEO of Homeland Energy Solutions, LLC, the limited liability company named in the foregoing instrument, and that said instrument was signed on behalf of said company by authority of its board and as the free act and deed of said company.

SEAL CHRISTY MARCHAND Commission Number 709988 MY COMM. EXP. 5-15-16	/s/ Christy Marchand
	Notary Public

EX-31.1

CERTIFICATIONS

I, Walter W. Wendland, certify that:

1.    I have reviewed this annual report on Form 10-K of Homeland Energy Solutions, 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:	February 27, 2014	/s/ Walter W. Wendland
		Walter W. Wendland, Chief Executive Officer

EX-31.2

CERTIFICATIONS

I, David A. Finke, certify that:

1.    I have reviewed this annual report on Form 10-K of Homeland Energy Solutions, 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:	February 27, 2014	/s/ David A. Finke
		David A. Finke, Chief 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 this annual report on Form 10-K of Homeland Energy Solutions, LLC (the “Company”) for the fiscal year ended December 31, 2013, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Walter W. Wendland, Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

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

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

Dated:	February 27, 2014	/s/ Walter W. Wendland
		Walter W. Wendland,
		Chief Executive Officer

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 this annual report on Form 10-K of Homeland Energy Solutions, LLC (the “Company”) for the fiscal year ended December 31, 2013, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, David A. Finke, 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.

Dated:	February 27, 2014	/s/ David A. Finke
		David A. Finke,
		Chief Financial Officer

XML

Supply Commitments (Details) (Supply Commitment [Member])	12 Months Ended
	Dec. 31, 2013 gal
Ethanol [Member]
Supply Commitment [Line Items]
Supply Commitment, Minimum Amount at Varying Fixed Price, Mass	13,800,000
Supply Commitment, Minimum Amount at Basis Price Levels, Mass	20,700,000
Corn Oil [Member]
Supply Commitment [Line Items]
Supply Commitment, Remaining Minimum Amount Committed, Weight	2,000,000
Distillers Grains [Member]
Supply Commitment [Line Items]
Supply Commitment, Remaining Minimum Amount Committed, Weight	69,000

XML

Quarterly Financial Data (Unaudited) (Details) (USD $)	3 Months Ended												12 Months Ended
	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2012	Sep. 30, 2012	Jun. 30, 2012	Mar. 31, 2012	Dec. 31, 2011	Sep. 30, 2011	Jun. 30, 2011	Mar. 31, 2011	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Quarterly Financial Data (Unaudited) [Abstract]
Revenue	$ 91,650,539	$ 98,342,436	$ 112,243,015	$ 97,975,795	$ 88,951,683	$ 84,499,206	$ 93,780,274	$ 92,011,614	$ 108,272,656	$ 109,993,347	$ 106,548,491	$ 94,498,066	$ 400,211,785	$ 359,242,777	$ 419,312,560
Gross Profit	14,068,250	5,614,185	8,613,215	3,157,969	684,733	(1,769,920)	1,896,219	2,367,009	13,882,929	10,139,712	11,130,673	4,993,173	31,453,619	3,178,041	40,146,487
Operating Income (Loss)	12,749,220	4,939,290	7,944,088	2,440,555	677	(2,416,309)	1,240,174	1,594,601	13,191,549	9,417,420	10,485,166	4,287,983	28,073,153	419,143	37,382,118
Net Income	$ 12,655,235	$ 5,062,318	$ 8,038,058	$ 2,478,297	$ 94,904	$ (2,467,293)	$ 1,221,495	$ 1,645,659	$ 12,726,328	$ 9,133,070	$ 10,216,858	$ 4,277,512	$ 28,233,908	$ 494,765	$ 36,353,768
Basic & diluted net income per capital unit	$ 195.95	$ 73.28	$ 88.87	$ 27.40	$ 1.05	$ (27.28)	$ 13.51	$ 18.20	$ 140.71	$ 100.98	$ 112.96	$ 47.26	$ 359.48	$ 5.47	$ 401.94

XML

Derivative Instruments - Income Statement (Details) (Not Designated as Hedging Instrument [Member], USD $)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Derivative Instruments, Gain (Loss) [Line Items]
Derivative Instruments, Realized Gain (Loss) Recognized in Income	$ 5,854,902		$ (566,911)
Derivative Instruments, Unrealized Gain (Loss) Recognized in Income	(719,173)		(311,413)
Derivative Instruments, Gain (Loss) Recognized in Income	5,135,729		(878,324)
Commodities [Member] | Cost of Sales [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Derivative Instruments, Realized Gain (Loss) Recognized in Income	5,914,962	(5,152,176)	(562,081)
Derivative Instruments, Unrealized Gain (Loss) Recognized in Income	(436,513)	998,738	(311,413)
Derivative Instruments, Gain (Loss) Recognized in Income	5,478,449	(4,153,438)	(873,494)
Commodities [Member] | Sales [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Derivative Instruments, Realized Gain (Loss) Recognized in Income	(60,060)		(4,830)
Derivative Instruments, Unrealized Gain (Loss) Recognized in Income	(282,660)		0
Derivative Instruments, Gain (Loss) Recognized in Income	$ (342,720)		$ (4,830)

XML

Committed Shares to be Redeemed (Details) (USD $)	3 Months Ended	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Nature of Business and Significant Accounting Policies [Abstract]
Stock Repurchased and Retired During Period, Shares		25,860		1,000
Commitment to redeem membership units		$ 30,000,000	$ 0	$ 0
Earnings Per Share, Basic and Diluted, Including Redeemed Shares	$ 139.92	$ 312.17

XML

Lease Obligations (Tables)

12 Months Ended

Dec. 31, 2013

Lease Obligations [Abstract]

Operating Leases Minimum Rental Commitments

2014	$	1,663,000
2015	1,663,000
2016	1,663,000
2017	861,000
2018	156,000
Thereafter	—
Total lease commitments	$	6,006,000

XML

Purchase Commitments Other (Details) (Public Utilities, Inventory, Fuel [Member], USD $)	Dec. 31, 2013
Public Utilities, Inventory, Fuel [Member]
Long-term Purchase Commitment [Line Items]
Purchase Obligation, Due in 2014	$ 3,828,000
Purchase Obligation, Due in 2015	3,787,000
Purchase Obligation, Due in 2016	3,787,000
Purchase Obligation, Due in 2017	3,787,000
Purchase Obligation, Due in 2018	3,787,000
Purchase Obligation, Due Thereafter	947,000
Purchase Obligation	$ 19,923,000

XML

Debt (Details) (Line of Credit [Member], Home Federal Savings Bank [Member], Term Revolving Loan [Member], USD $)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Line of Credit [Member] | Home Federal Savings Bank [Member] | Term Revolving Loan [Member]
Debt Instrument [Line Items]
Debt Instrument, Basis Spread on Variable Rate	3.10%
Line of Credit Facility, Maximum Borrowing Capacity	$ 20,000,000
Line of Credit Facility, Interest Rate at Period End	3.27%
Line of Credit Facility, Amount Outstanding	$ 15,000,000	$ 1,000,000

XML

Fair Value Measurements (Details) (Fair Value, Measurements, Recurring [Member], USD $)	Dec. 31, 2013	Dec. 31, 2012
Estimate of Fair Value, Fair Value Disclosure [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Assets	$ 250,813	$ 893,800
Derivative Liabilities	(282,660)	(206,475)
Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Assets	250,813	893,800
Derivative Liabilities	(282,660)	(206,475)
Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Assets	0	0
Derivative Liabilities	0	0
Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Assets	0	0
Derivative Liabilities	$ 0	$ 0

XML

Nature of Business and Significant Accounting Policies

12 Months Ended

Dec. 31, 2013

Nature of Business and Significant Accounting Policies [Abstract]

Nature of Business and Significant Accounting Policies

Nature of Business and Significant Accounting Policies

Nature of Business: Homeland Energy Solutions, LLC (an Iowa Limited Liability Company) is located near Lawler, Iowa and was organized to pool investors for a 100 million gallon ethanol plant with distribution throughout the United States. The Company has capacity to produce in excess of 133 million gallons annually and sells distillers dried grains and corn oil as byproducts of ethanol production.

Organization: Homeland Energy Solutions, LLC is organized as an Iowa limited liability company. The members' liability is limited as specified in Homeland Energy Solutions' operating agreement and pursuant to the Iowa Revised Uniform Limited Liability Company Act.

Significant Accounting Policies:

Accounting Estimates: Management uses estimates and assumptions in preparing these financial statements in accordance with United States 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 Cash Equivalents: The Company maintains its accounts primarily at one financial institution. At various times, the Company's cash balances may exceed amounts insured by the Federal Deposit Insurance Corporation. The Company has not experienced losses in such accounts.

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

Investments: The Company has a less than 20% investment interest in Renewable Products Marketing Group, LLC. This investment is being accounted for under 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. The investment balance is included in other assets and the income recognized as other income. The investment is 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.

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

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

	Estimated Useful Life in Years
	Minimum	Maximum
Land Improvements	20	40
Buildings	10	40
Equipment	7	40

Land improvements relate to two general categories: road infrastructure and general sitework. Road infrastructure relates to the excavating and paving of surface roads and the sitework includes such things as the well system and earthmoving. Buildings relate to three general categories: grain handling, process and administrative buildings. Equipment relates to three general categories: mechanical equipment, rail handling equipments and administrative and maintenance equipment. Mechanical equipment generally relates to equipment for handling inventories and the production of ethanol and related products, including such things as boilers, cooling towers, grain bins, centrifuges, conveyors, fermentation tanks, pumps and drying equipment. Rail handling equipments relates to railroad track. Administrative and maintenance equipment includes vehicles, computer systems, security equipments, testing devices and shop equipment.

The Company reviewed its usage, continued maintenance and productivity of its processing and production equipment, based on this review the Company reevaluated the useful lives of such equipment. As such, effective October 1, 2012 the Company increased the estimated useful lives on a significant portion of its processing and production equipment from 10 to 15 years. This change in estimate is accounted for on a prospective basis. This change resulted in a decrease in depreciation expense, an increase to operating income and an increase in net income of approximately $750,000, and an increase in income per unit of $8.29 for the Fourth Quarter 2012.

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 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 in 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. The Company has concluded that no impairment is necessary.

Derivative Instruments: The Company evaluates its contracts to determine whether the contracts are derivative instruments. Certain contracts that literally meet the definition of a derivative may be exempted from derivative accounting as normal purchases or normal sales. 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. Contracts that meet the requirements of normal purchases or sales are documented as normal and exempted from the accounting and reporting requirements of derivative accounting.

The Company enters into short-term cash, option and futures contracts as a means of securing purchases of corn, natural gas and sales of ethanol for the plant and managing exposure to changes in commodity and energy prices. All of the Company's derivatives are designated as non-hedge derivatives for accounting purposes, with changes in fair value recognized in net income. Although the contracts are economic hedges of specified risks, they are not designated as and accounted for as hedging instruments.

As part of its trading activity, the Company uses futures and option contracts through regulated commodity exchanges to manage its risk related to pricing of inventories. To reduce that risk, the Company generally takes positions using cash and futures contracts and options.

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 entered through commodity exchanges are presented on the accompanying balance sheet as derivative instruments.

Loan Fees and Utility Rights: Utility rights consist of payments to electric and natural gas companies for construction in aid of electric and gas lines to the facility but the Company retains no ownership rights to the assets. The loan fees are amortized over the term of the loan and utility rights are amortized over 15 years or the anticipated useful life utilizing a method that materially approximates the straight-line method. The useful life was determined in part by the length of service agreements the Company has with the utility companies as well as normal usage of such infrastructure.

At December 31, 2013, the Company anticipates the following amortization of Loan Fees and Utility Rights for the twelve month periods ended December 31:

2014	$	164,000
2015	136,000
2016	136,000
2017	136,000
2018	136,000
Thereafter	718,000
Total amortization	$	1,426,000

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. The generally occurs upon shipment, loading of the goods or when the customer picks up the goods. Interest income is recognized as earned. Shipping costs incurred by the Company in the sale of ethanol and distiller grains are not specifically identifiable and as a result, revenue from the sale of ethanol and distiller grains is recorded based on the net selling price reported to the Company from the marketer. Rail car lease costs incurred by the Company in the sale and shipment of distiller grain products are included in the cost of goods sold.

Income Taxes: The Company was formed under sections of the federal and state income tax laws which provide that, in lieu of corporate income taxes, the members separately account for their share of the Company's items of income, deductions, losses and credits. As a result of this election, no income taxes have been recognized in the accompanying financial statements.

Committed Shares to be Redeemed: On June 13, 2013, the Company entered into an agreement with Steve Retterath, the Company's largest member, to repurchase and retire all of the membership units owned by Mr. Retterath. The Company agreed to close on this repurchase on or before August 1, 2013. The Company agreed to repurchase and retire 25,860 membership units owned by Mr. Retterath in exchange for $30 million, to be paid in two equal installments payable at closing and on July 1, 2014. The transaction failed to close by the scheduled date due to objections by Mr. Retterath. Due to all conditions of the agreement being met prior to, or on, August 1, 2013, the Company believes that it has a binding agreement with Mr. Retterath; as such the commitment to repurchase and retire the membership units is reflected in the financial statements as if the transaction had closed on August 1, 2013.

Net Income per Unit: Basic and diluted net income per unit is computed by dividing net income by the weighted average number of members' units and members' unit equivalents outstanding during the period. There were no member unit equivalents outstanding during the periods presented; accordingly, the Company's basic and diluted net income per unit are the same.

Prior to, or on, August 1, 2013, the Company believes it has a binding agreement with Steve Retterath to repurchase and retire all 25,860 membership units owned by Mr. Retterath. These membership units have thus been excluded in the determination of net income per unit as presented in the Statement of Operations. The Company is currently involved in litigation with Mr. Retterath. There is potential that Mr. Retterath will continue as a unit holder upon conclusion of the litigation and said membership units would not be redeemed under the repurchase agreement date. If the units are not redeemed, basic and diluted net income per unit, including the 25,860 shares, for the three and twelve months ended December 31, 2013 would be $139.92 and $312.17, respectively.

Environmental Liabilities: The Company's operations are subject to environmental laws and regulations adopted by various governmental authorities in the jurisdiction in which it operates. These laws require the Company to investigate and remediate the effects of the release or disposal of materials at its locations. Accordingly, the Company has adopted policies, practices and procedures in the areas of pollution control, occupational health and the production, handling, storage and use of hazardous materials to prevent material environmental or other damage, and to limit the financial liability which could result from such events. Environmental liabilities are recorded when the Company's liability is probable and the costs can be reasonably estimated. No expense or liability, including asset retirement obligations, for environmental liabilities has been recorded for the years ended December 31, 2013, 2012, or 2011.

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 twelve months ended December 31, 2013, ethanol sales averaged approximately 76% of total revenues, while approximately 21% of revenues were generated from the sale of distiller grains and 3% of revenues were generated from the sale of corn oil. For the twelve months ended December 31, 2013, corn costs averaged approximately 86% of cost of goods sold.

The Company's operating and financial performance is largely driven by the prices at which it sells ethanol and the net expense of corn. The price of ethanol is influenced by factors such as supply and demand, weather, government policies and programs, and unleaded gasoline and the petroleum markets, although since 2005 the prices of ethanol and gasoline began a divergence 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, and 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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Lease Obligations (Details) (Railroad Transportation Equipment [Member], USD $)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Railroad Transportation Equipment [Member]
Operating Leased Assets [Line Items]
Operating Leases, Rent Expense	$ 1,665,000	$ 1,334,000	$ 2,365,000
Operating Lease Payments Due 2014	1,663,000
Operating Lease Payments Due 2015	1,663,000
Operating Lease Payments Due 2016	1,663,000
Operating Lease Payments Due 2017	861,000
Operating Lease Payments Due 2018	156,000
Operating Lease Payments Due Thereafter	0
Total Operating Lease Payments Due	$ 6,006,000

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Nature of Business and Significant Accounting Policies (Details) (Ethanol [Member])	12 Months Ended
	Dec. 31, 2013 gal
Ethanol [Member]
Product Information [Line Items]
Annual Production Capacity, Minimum	100,000,000
Annual Production Capacity, Current	133,000,000

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Quarterly Financial Data (Unaudited) (Tables)

12 Months Ended

Dec. 31, 2013

Quarterly Financial Data (Unaudited) [Abstract]

Schedule of Quarterly Financial Information

2013	First Quarter		Second Quarter		Third Quarter			Fourth Quarter
Total Revenues	$	97,975,795	$	112,243,015	$	98,342,436		$	91,650,539
Gross Profit	3,157,969		8,613,215		5,614,185			14,068,250
Operating Income	2,440,555		7,944,088		4,939,290			12,749,220
Net Income	2,478,297		8,038,058		5,062,318			12,655,235
Basic & diluted earnings per unit	$	27.40	$	88.87	$	73.28		$	195.95
2012	First Quarter		Second Quarter		Third Quarter			Fourth Quarter
Total Revenues	$	92,011,614	$	93,780,274	$	84,499,206		$	88,951,683
Gross Profit (Loss)	2,367,009		1,896,219		(1,769,920		)	684,733
Operating Income (Loss)	1,594,601		1,240,174		(2,416,309		)	677
Net Income (Loss)	1,645,659		1,221,495		(2,467,293		)	94,904
Basic & diluted earnings (loss) per unit	$	18.20	$	13.51	$	(27.28	)	$	1.05
2011	First Quarter		Second Quarter		Third Quarter			Fourth Quarter
Total Revenues	$	94,498,066	$	106,548,491	$	109,993,347		$	108,272,656
Gross Profit	4,993,173		11,130,673		10,139,712			13,882,929
Operating Income	4,287,983		10,485,166		9,417,420			13,191,549
Net Income	4,277,512		10,216,858		9,133,070			12,726,328
Basic & diluted earnings per unit	$	47.26	$	112.96	$	100.98		$	140.71

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Employee Benefit Plans (Details) (USD $)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Employee Benefit Plans [Abstract]
Defined Benefit Plan, Contributions by Employer	$ 64,000	$ 69,000	$ 58,000

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Investment (Details)	Dec. 31, 2013
Nature of Business and Significant Accounting Policies [Abstract]
Equity Method Investment, Ownership Percentage	20.00%

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Property, Plant and Equipment (Details) (USD $)	12 Months Ended
	Dec. 31, 2013
Property, Plant and Equipment [Line Items]
Increase in Net Income During Period	$ 750,000
Income (Loss) from Continuing Operations, Per Basic Share	$ 8.29
Other Machinery and Equipment [Member] | Minimum [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Estimated Useful Lives	10
Other Machinery and Equipment [Member] | Maximum [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Estimated Useful Lives	15
Land Improvements [Member] | Minimum [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Estimated Useful Lives	20
Land Improvements [Member] | Maximum [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Estimated Useful Lives	40
Building [Member] | Minimum [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Estimated Useful Lives	10
Building [Member] | Maximum [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Estimated Useful Lives	40
Equipment [Member] | Minimum [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Estimated Useful Lives	7
Equipment [Member] | Maximum [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Estimated Useful Lives	40

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Statement of Members' Equity Parenthetical	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2011
Stock Repurchased and Retired During Period, Shares	25,860	1,000

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Amortization of Loan Fees and Utility Rights (Details) (USD $)	12 Months Ended
	Dec. 31, 2013
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Amoritzation of financing costs and utility rights, future minimum payments, due in next twelve months	$ 164,000
Amoritzation of financing costs and utility rights, future minimum payments, due in two years	136,000
Amoritzation of financing costs and utility rights, future minimum payments, due in three years	136,000
Amoritzation of financing costs and utility rights, future minimum payments, due in four years	136,000
Amoritzation of financing costs and utility rights, future minimum payments, due in five years	136,000
Amoritzation of financing costs and utility rights, future minimum payments, due thereafter	718,000
Amortization of Financing Costs	$ 1,426,000

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Related Party (Details) (USD $)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Investor [Member]
Related Party Transaction [Line Items]
Equity Method Investments	$ 2,305,000	$ 1,293,000
Ethanol [Member] | Investor [Member]
Related Party Transaction [Line Items]
Sales	305,444,000	276,321,000	241,229,000
Marketing Fees	225,000	392,000	380,000
Ethanol [Member] | Unrelated Party [Member]
Related Party Transaction [Line Items]
Sales	0	0	103,973,000
Marketing Fees	0	0	558,000
Ethanol [Member] | RPMG [Member]
Related Party Transaction [Line Items]
Accounts Receivable	5,245,000	199,000	1,113,000
Distillers Grains [Member] | Unrelated Party [Member]
Related Party Transaction [Line Items]
Sales	82,552,000	71,272,000	71,647,000
Marketing Fees	744,000	723,000	910,000
Distillers Grains [Member] | CHS [Member]
Related Party Transaction [Line Items]
Accounts Receivable	2,147,000	2,077,000	2,255,000
Corn Oil [Member] | Investor [Member]
Related Party Transaction [Line Items]
Sales	12,558,000	11,649,000	2,424,000
Marketing Fees	$ 67,000	$ 67,000	$ 17,000

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Balance Sheets (USD $)	Dec. 31, 2013	Dec. 31, 2012
CURRENT ASSETS
Cash and cash equivalents	$ 38,490,952	$ 2,081,779
Accounts receivable	7,484,886	2,385,638
Derivative instruments	1,180,775	1,341,281
Inventory	7,397,733	9,655,732
Prepaid and other	1,901,710	1,937,966
Total current assets	56,456,056	17,402,396
PROPERTY AND EQUIPMENT
Land and improvements	22,533,935	22,474,880
Buildings	5,366,168	5,366,168
Equipment	139,453,228	136,867,806
Construction in progress	108,577	139,736
Gross Property and Equipment	167,461,908	164,848,590
Less accumulated depreciation	53,959,742	43,698,125
Total property and equipment	113,502,166	121,150,465
OTHER ASSETS
Loan fees, net of amortization of $1,145,047 and $1,097,175	27,925	75,797
Utility rights, net of amortization of $910,053 and $773,665	1,397,976	1,534,364
Other assets	2,694,003	1,684,146
Total Other Assets	4,119,904	3,294,307
TOTAL ASSETS	174,078,126	141,847,168
CURRENT LIABILITIES
Accounts payable	8,654,638	10,547,541
Due to former member	30,000,000	0
Interest payable	1,361	2,512
Property tax payable	464,524	441,114
Payroll payable	507,187	213,591
Total current liabilities	39,627,710	11,204,758
COMMITMENTS AND CONTINGENCIES
LONG-TERM LIABILITIES
Term revolving loan	15,000,000	1,000,000
Other Liabilities	303,526	268,793
Total long-term liabilities	15,303,526	1,268,793
MEMBERS' EQUITY, (64,585 and 90,445 units issued and outstanding as of December 31, 2013 and 2012, respectively	119,146,890	129,373,617
TOTAL LIABILITIES AND MEMBERS' EQUITY	$ 174,078,126	$ 141,847,168

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Derivative Instruments - Balance Sheet (Details) (USD $)				12 Months Ended						12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2013 Corn [Member] Designated as Hedging Instrument [Member]	Dec. 31, 2013 Minimum [Member] Corn [Member] Designated as Hedging Instrument [Member]	Dec. 31, 2013 Maximum [Member] Corn [Member] Designated as Hedging Instrument [Member]	Dec. 31, 2013 Other Current Assets [Member]	Dec. 31, 2012 Other Current Assets [Member]	Dec. 31, 2013 Other Current Assets [Member] Commodity Contract [Member]	Dec. 31, 2012 Other Current Assets [Member] Commodity Contract [Member]	Dec. 31, 2013 Corn [Member] bu
Derivatives, Fair Value [Line Items]
Concentration Risk, Amount of Material										46,000,000
Derivative, Nonmonetary Notional Amount, Percent of Required Need, Yearly Average				5.00%	60.00%
Derivative, Nonmonetary Notional Amount, Percent of Required Need, Coverage			7.00%
Derivative Asset, Fair Value, Gross Asset								$ 250,813	$ 893,800
Derivative Asset, Fair Value, Gross Liability								(282,660)	(206,475)
Other Receivables from Broker-Dealers and Clearing Organizations						1,212,622	653,956
Derivative instruments	$ 1,180,775	$ 1,341,281				$ 1,180,775	$ 1,341,281

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Statements of Cash Flows Parenthetical (USD $)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Cash paid for interest, net of capitalized interest of none, $59,654 and none, respectively	$ 0	$ 0	$ 59,654

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Inventory (Details) (USD $)	Dec. 31, 2013	Dec. 31, 2012
Inventory [Abstract]
Raw Materials	$ 4,617,404	$ 4,634,704
Work in Process	1,600,041	2,350,304
Finished Goods	1,180,288	2,670,724
Inventory	$ 7,397,733	$ 9,655,732

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Nature of Business and Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2013

Nature of Business and Significant Accounting Policies [Abstract]

Property, Plant and Equipment

	Estimated Useful Life in Years
	Minimum	Maximum
Land Improvements	20	40
Buildings	10	40
Equipment	7	40

Amortization of Loan Fees and Utility Rights

2014	$	164,000
2015	136,000
2016	136,000
2017	136,000
2018	136,000
Thereafter	718,000
Total amortization	$	1,426,000

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Debt Nature of Business (Details) (Ethanol [Member])	12 Months Ended
	Dec. 31, 2013 gal
Ethanol [Member]
Product Information [Line Items]
Annual Production Capacity, Minimum	100,000,000

XML

Commitments, Contingencies and Agreements (Tables)

12 Months Ended

Dec. 31, 2013

Commitments, Contingencies and Agreements [Abstract]

Schedule of Related Party Transactions

	2013		2012		2011
Sales ethanol - unrelated parties	$	—	$	—	$	103,973,000
Sales ethanol - RPMG	305,444,000		276,321,000		241,229,000
Sales distiller grains	82,552,000		71,272,000		71,647,000
Sales corn oil - RPMG	12,558,000		11,649,000		2,424,000
Marketing fees ethanol - unrelated parties	—		—		558,000
Marketing fees ethanol - RPMG	225,000		392,000		380,000
Marketing fees distiller grains	744,000		723,000		910,000
Marketing fees corn oil - RPMG	67,000		67,000		17,000
	2013		2012		2011
Amount due from RPMG	5,245,000		199,000		1,113,000
Amount due from CHS	2,147,000		2,077,000		2,255,000

Contractual Obligation, Fiscal Year Maturity Schedule

2014	$	3,828,000
2015	3,787,000
2016	3,787,000
2017	3,787,000
2018	3,787,000
Thereafter	947,000
Total anticipated commitments	$	19,923,000

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Statement of Members' Equity (USD $)	Total	Stockholders' Equity, Total [Member]
Members' Equity at Dec. 31, 2010		$ 112,483,814
Stock Repurchased and Retired During Period, Value	(1,000,000)	(1,000,000)
Distribution to members	13,295,415	(7,145,155)
Net Income	36,353,768	36,353,768
Equity adjustment in investee	0
Commitment to redeem membership units	0
Members' Equity at Dec. 31, 2011		140,692,427
Stock Repurchased and Retired During Period, Value	0
Distribution to members	12,029,185	(12,029,185)
Net Income	494,765	494,765
Equity adjustment in investee	215,610	215,610
Commitment to redeem membership units	0
Members' Equity at Dec. 31, 2012	129,373,617	129,373,617
Stock Repurchased and Retired During Period, Value	0
Distribution to members	8,460,635	(8,460,635)
Net Income	28,233,908	28,233,908
Equity adjustment in investee	0
Commitment to redeem membership units	30,000,000	(30,000,000)
Members' Equity at Dec. 31, 2013	$ 119,146,890	$ 119,146,890

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Balance Sheets Parenthetical (USD $)	Dec. 31, 2013	Dec. 31, 2012
Other Assets:
Loan fees, net of amortization	$ 1,145,047	$ 1,097,175
Utility rights, net of amortization	$ 910,053	$ 773,665
MEMBERS’ EQUITY
Members Capital units issued and outstanding	64,585	90,445

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Fair Value Measurements

12 Months Ended

Dec. 31, 2013

Fair Value Measurements [Abstract]

Fair Value Measurements

FAIR VALUE MEASUREMENTS

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

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

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

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

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

Derivative financial instruments: Commodity futures and exchange-traded commodity options contracts are reported at fair value utilizing Level 1 inputs. For these contracts, the Company obtains fair value measurements from an independent pricing service. The fair value measurements consider observable data that may include dealer quotes and live trading levels from the CBOT and NYMEX markets. 

The following table summarizes financial assets and financial liabilities measured at fair value on a recurring basis as of December 31, 2013 and December 31, 2012, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value:

	Total			Level 1			Level 2		Level 3
Derivative financial instruments
December 31, 2013
Assets	$	250,813		$	250,813		$	—	$	—
Liabilities	(282,660		)	(282,660		)	—		—
December 31, 2012
Assets	$	893,800		$	893,800		$	—	$	—
Liabilities	(206,475		)	(206,475		)	—		—

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Dcoument and Entity Information Document (USD $)	12 Months Ended
	Dec. 31, 2013	Feb. 27, 2014	Jun. 30, 2013
Document Information [Line Items]
Entity Registrant Name	HOMELAND ENERGY SOLUTIONS LLC
Entity Central Index Key	0001366744
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Document Type	10-K
Document Period End Date	Dec. 31, 2013
Document Fiscal Year Focus	2013
Document Fiscal Period Focus	Q4
Amendment Flag	false
Entity Common Stock, Shares Outstanding		90,445
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Public Float			$ 0

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Unit Redemption & Related Litigation (Notes)

12 Months Ended

Dec. 31, 2013

Unit Redemption & Related Litigation [Abstract]

Unit Redemption and Related Litigation

LITIGATION MATTERS

Retterath

In relation to the repurchase agreement discussed in Note 4, on August 1, 2013 Mr. Retterath filed a lawsuit against the Company along with several directors, the Company's CEO, CFO, Plant Manager, a former director and the Company's outside legal counsel in Florida state court. Mr. Retterath's factual basis for his claims is unclear from the complaint and amended complaints Mr. Retterath has filed, however, it appears that Mr. Retterath is claiming that certain actions taken by the Company violated fiduciary duties owed to him as a member or fraudulently induced him to take certain actions. Mr. Retterath is also claiming violations of state and federal securities laws and violations of Florida's deceptive and unfair trade practices statutes. On August 14, 2013, the Company filed a lawsuit in Iowa state court to enforce the repurchase agreement the Company entered into with Mr. Retterath.

GS Cleantech Corporation

On August 9, 2013, GL Cleantech Corporation (GS Cleantech), a subsidiary of Greenshift Corporation, filed a complaint against the Company alleging the the Company's operation of a corn oil extraction process licensed by the Company infringes patent rights claimed by GL Cleantech. GS Cleantech seeks royalties, damages and potentially triple damages associated with the alleged infringement, as well as attorney's fees from the Company. The Company has filed an answer and counterclaims claiming invalidity of the patents, noninfringement, and inequitable conduct. The Company is not currently able to predict the outcome of the litigation with any degree of certainty.

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Statements of Operations (USD $)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Revenue	$ 400,211,785	$ 359,242,777	$ 419,312,560
Costs of Goods Sold	368,758,166	356,064,736	379,166,073
Gross Profit	31,453,619	3,178,041	40,146,487
Selling, general and administrative expenses	3,380,466	2,758,898	2,764,369
Operating Income	28,073,153	419,143	37,382,118
OTHER INCOME (EXPENSE)
Interest expense	(60,230)	(246,272)	(1,333,840)
Interest income	11,506	820	32,025
Other Income	209,479	321,074	273,465
Total Other Income (Expense)	160,755	75,622	(1,028,350)
Net Income	$ 28,233,908	$ 494,765	$ 36,353,768
Basic & diluted net income per capital unit	$ 359.48	$ 5.47	$ 401.94
Distribution per capital unit	$ 131.00	$ 133.00	$ 79.00
Weighted average number of units outstanding for the calculation of basic & diluted net income per capital unit	78,542	90,445	90,445

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Related Party Transactions

12 Months Ended

Dec. 31, 2013

Related Party Transactions [Abstract]

Related Party Transactions

RELATED PARTY TRANSACTIONS

Due to Former Member

On June 13, 2013, the Company entered into an agreement with Steve Retterath, the Company's largest member, to repurchase and retire all of the units owned by Mr. Retterath. The Company agreed to close on this repurchase on or before August 1, 2013. The Company agreed to repurchase and retire 25,860 memberships units owned by Mr. Retterath in exchange for $30 million, to be paid in two equal installments payable at closing and on July 1, 2014. The transaction failed to close by the scheduled date due to objections by Mr. Retterath. The Company believes that it has a binding agreement with Mr. Retterath. On August 14, 2013, the Company filed a lawsuit against Mr. Retterath in Iowa state court to enforce the terms of the repurchase agreements. The Company is asking the Iowa court to require Mr. Retterath to complete the repurchase agreement pursuant to its terms.

Mr. Retterath contends that he is not bound by the agreement. The Company's position is as of the closing date, Mr. Retterath is no longer the equitable owner of any membership units in the Company. As a result, the Company has recorded a $30 million short-term liability related to the amount the Company agreed to pay Mr. Retterath to repurchase his membership units and has correspondingly reduced members' equity on its balance sheet. If the Company is ultimately unsuccessful in its lawsuit against Mr. Retterath, the Company will reevaluate the accounting considerations made during the period of time that the lawsuit is pending.

Other Matters

The Company purchases corn and materials from members of its Board of Directors who own or manage elevators or are local producers of corn. Purchases during the years ended December 31, 2013, 2012 and 2011 from these companies and individuals totaled approximately $4,347,000, $0 and $16,927,000, respectively. Amounts due to those members was $0 as of December 31, 2013 and 2012.

The Company has an agreement with Golden Grain Energy, LLC (Golden Grain), a member of the Company, for management services. Pursuant to the agreement, Homeland Energy and Golden Grain have agreed to share management services in an effort to reduce the costs of administrative overhead. Homeland Energy and Golden Grain have agreed to split the compensation costs associated with each of the employees covered by the agreement. For the years ended December 31, 2013, 2012, and 2011 the Company incurred net costs of approximately $139,000, $119,000 and $244,000, respectively related to this agreement.

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Debt

12 Months Ended

Dec. 31, 2013

Debt [Abstract]

Debt

DEBT

Master Loan Agreement with Home Federal Savings Bank

On November 30, 2007, the Company entered into a Master Loan Agreement with Home Federal Savings Bank ("Home Federal") establishing a senior credit facility with Home Federal for the construction of a 100 million gallon per year natural gas powered dry mill ethanol plant. In return, the Company executed a mortgage in favor of Home Federal creating a senior lien on the real estate and plant and a security interest in all personal property located on Company property. The Company currently has a term revolving loan with Home Federal.

Term Revolving Loan

Under the terms of the Seventh Amendment to the Master Loan Agreement, the company has a $20 million term revolving loan which has a maturity date of August 1, 2018. Interest on the term revolving loan accrues at a rate equal to the one month LIBOR plus 310 basis points, 3.27% on December 31, 2013. The Company is required to make monthly payments of interest until the maturity date of the term revolving loan on August 1, 2018, on which date the unpaid principal balance of the term revolving loan becomes due. The balance outstanding on the term revolving loan as of December 31, 2013 and December 31, 2012 was $15,000,000 and $1,000,000 respectively.

Covenants

In addition, during the term of the Loans, the Company is subject to certain financial covenants at various times calculated monthly, quarterly or annually, including restriction of the payment of dividends and capital expenditures and maintenance of certain financial ratios including the minimum working capital, tangible net worth, and a fixed charge ratio as defined by the Master Loan Agreement. 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 the imposition of fees, charges or penalties.

XML

Inventory (Tables)

12 Months Ended

Dec. 31, 2013

Inventory [Abstract]

Schedule of Inventory

Inventory consisted of the following as of December 31, 2013 and 2012.

	December 31, 2013		December 31, 2012
Raw Materials	$	4,617,404	$	4,634,704
Work in Process	1,600,041		2,350,304
Finished Goods	1,180,288		2,670,724
Totals	$	7,397,733	$	9,655,732

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Quarterly Financial Data (Unaudited)

12 Months Ended

Dec. 31, 2013

Quarterly Financial Data (Unaudited) [Abstract]

Quarterly Financial Data (Unaudited)

QUARTERLY FINANCIAL DATA (UNAUDITED)

Summary quarterly results for the years ended December 31, 2013, 2012 and 2011 are as follows:

2013	First Quarter		Second Quarter		Third Quarter			Fourth Quarter
Total Revenues	$	97,975,795	$	112,243,015	$	98,342,436		$	91,650,539
Gross Profit	3,157,969		8,613,215		5,614,185			14,068,250
Operating Income	2,440,555		7,944,088		4,939,290			12,749,220
Net Income	2,478,297		8,038,058		5,062,318			12,655,235
Basic & diluted earnings per unit	$	27.40	$	88.87	$	73.28		$	195.95
2012	First Quarter		Second Quarter		Third Quarter			Fourth Quarter
Total Revenues	$	92,011,614	$	93,780,274	$	84,499,206		$	88,951,683
Gross Profit (Loss)	2,367,009		1,896,219		(1,769,920		)	684,733
Operating Income (Loss)	1,594,601		1,240,174		(2,416,309		)	677
Net Income (Loss)	1,645,659		1,221,495		(2,467,293		)	94,904
Basic & diluted earnings (loss) per unit	$	18.20	$	13.51	$	(27.28	)	$	1.05
2011	First Quarter		Second Quarter		Third Quarter			Fourth Quarter
Total Revenues	$	94,498,066	$	106,548,491	$	109,993,347		$	108,272,656
Gross Profit	4,993,173		11,130,673		10,139,712			13,882,929
Operating Income	4,287,983		10,485,166		9,417,420			13,191,549
Net Income	4,277,512		10,216,858		9,133,070			12,726,328
Basic & diluted earnings per unit	$	47.26	$	112.96	$	100.98		$	140.71

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Employee Benefit Plans

12 Months Ended

Dec. 31, 2013

Employee Benefit Plans [Abstract]

Employee Benefit Plans

EMPLOYEE BENEFIT PLANS

The Company has adopted a Simple IRA Adoption Agreement which provides retirement savings options for all eligible employees. Employees meeting certain eligibility requirements can participate in the plan. The Company makes a matching contribution based on the participants' eligible wages. For the years ended December 31, 2013, 2012 and 2011 the Company made matching contributions of approximately $64,000, $69,000 and $58,000, respectively.

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Commitments, Contingencies and Agreements

12 Months Ended

Dec. 31, 2013

Commitments, Contingencies and Agreements [Abstract]

Commitments and Contingencies and Agreements

COMMITMENTS, CONTINGENCIES AND AGREEMENTS

Ethanol, corn oil, and distiller grains marketing agreements and major customers

Prior to May 1, 2011, the Company had entered into a marketing agreement to sell all ethanol produced at the plant to an unrelated entity at a mutually agreed on price, less commission and transportation charges. This agreement was terminated effective April 30, 2011.

Effective May 1, 2011, the Company entered into a marketing agreement with RPMG, a related party, to sell all ethanol produced at the plant to an entity in which the Company invests in at a mutually agreed on price, less commission and transportation charges. As of December 31, 2013, the Company had commitments to sell approximately 13,800,000 gallons at various fixed prices and 20,700,000 gallons at basis price levels indexed against exchanges for delivery through March 31, 2014.

Effective July 28, 2011, the Company entered into a marketing agreement with RPMG to sell all corn oil produced at the plant at a mutually agreed on price, less marketing fees and transportation charges. As of December 31, 2013, the Company had commitments to sell approximately 2,000,000 pounds at various fixed and basis price levels indexed against exchanges for delivery through January 31, 2014.

The Company also has an investment in RPMG, LLC, included in other assets, totaling approximately $2,305,000 and $1,293,000 as of December 31, 2013 and 2012.

The Company has entered into a marketing agreement to sell all distiller grains produced at the plant to CHS, an unrelated party, at a mutually agreed on price, less commission and transportation charges. The agreement was renewed for another one year term on April 1, 2013. The agreement calls for automatic renewal for successive one-year terms unless 120-day prior written notice is given before the current term expires. As of December 31, 2013, the Company had approximately 69,000 tons of distiller grains commitments for delivery through September 2014 at various fixed prices.

Sales and marketing fees related to the agreements in place for the years ended December 31, 2013, 2012 and 2011 were as follows:

	2013		2012		2011
Sales ethanol - unrelated parties	$	—	$	—	$	103,973,000
Sales ethanol - RPMG	305,444,000		276,321,000		241,229,000
Sales distiller grains	82,552,000		71,272,000		71,647,000
Sales corn oil - RPMG	12,558,000		11,649,000		2,424,000
Marketing fees ethanol - unrelated parties	—		—		558,000
Marketing fees ethanol - RPMG	225,000		392,000		380,000
Marketing fees distiller grains	744,000		723,000		910,000
Marketing fees corn oil - RPMG	67,000		67,000		17,000
	2013		2012		2011
Amount due from RPMG	5,245,000		199,000		1,113,000
Amount due from CHS	2,147,000		2,077,000		2,255,000

At December 31, 2013, the Company had approximately $16,163,000 in outstanding corn purchase commitments for bushels at various prices and approximately 2,500,000 bushels of unpriced corn through December 2014 accounted for under the normal purchase exclusion.

The Company has commitments for minimum purchases of various utilities such as natural gas and electricity over the next 6 years, accounted for under the normal purchase exclusion, which are anticipated to approximate the following for the twelve month periods ending December 31:

2014	$	3,828,000
2015	3,787,000
2016	3,787,000
2017	3,787,000
2018	3,787,000
Thereafter	947,000
Total anticipated commitments	$	19,923,000

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Lease Obligations

12 Months Ended

Dec. 31, 2013

Lease Obligations [Abstract]

Lease Obligations

LEASE OBLIGATIONS

The Company leases rail cars and rail moving equipment with original terms up to 5 years. The Company is obligated to pay costs of insurance, taxes, repairs and maintenance pursuant to terms of the leases. Rent expense incurred for the operating leases during the years ended December 31, 2013, 2012 and 2011 was approximately $1,665,000, $1,334,000 and $2,365,000.

At December 31, 2013, the Company had the following approximate minimum rental commitments under non-cancelable operating leases for the twelve month periods ended December 31:

2014	$	1,663,000
2015	1,663,000
2016	1,663,000
2017	861,000
2018	156,000
Thereafter	—
Total lease commitments	$	6,006,000

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Derivative Instruments

12 Months Ended

Dec. 31, 2013

Derivative Instruments [Abstract]

Derivative Instruments

    DERIVATIVE INSTRUMENTS

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 and options contracts to reduce its net position of merchandisable agricultural commodity inventories and forward cash purchase and sales contracts and uses exchange traded futures and options contracts to reduce price risk. Exchange-traded futures contracts are valued at market price. Changes in market price of exchange traded futures and options contracts related to corn and natural gas are recorded in costs of goods sold and changes in market prices of contracts related to the sale of ethanol, if applicable, are recorded in revenues.

The Company uses futures or options contracts to fix the purchase price of anticipated volumes of corn to be purchased and processed in a future month.    The Company's plant will grind approximately 46 million bushels of corn per year.  During the previous period and over the next 12 months, the Company has hedged and anticipates hedging between 5% and 60% of its anticipated monthly grind.  At December 31, 2013, the Company has hedged portions of its anticipated monthly purchases for corn averaging approximately 7% of its anticipated monthly grind over the next twelve months.

Unrealized gains and losses on non-exchange traded forward contracts are deemed "normal purchases or sales" under authoritative accounting guidance, as amended 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 periods ended December 31, 2013, 2012, and 2011 and the fair value of derivatives as of December 31, 2013 and 2012:

	Income Statement Classification	Realized Gain (Loss)			Change In Unrealized Gain (Loss)			Total Gain (Loss)
Derivatives not designated as hedging instruments: Commodity contracts for the year ended December 31, 2013.
	Cost of Goods Sold	$	5,914,962		$	(436,513	)	$	5,478,449
	Revenue	(60,060		)	(282,660		)	(342,720		)
	Total	$	5,854,902		$	(719,173	)	$	5,135,729
Derivatives not designated as hedging instruments: Commodity contracts for the year ended December 31, 2012.
	Cost of Goods Sold	$	(5,152,176	)	$	998,738		$	(4,153,438	)
Derivatives not designated as hedging instruments: Commodity contracts for the year ended December 31, 2011.
	Cost of Good Sold	$	(562,081	)	$	(311,413	)	$	(873,494	)
	Revenue	(4,830		)	—			(4,830		)
	Total	$	(566,911	)	$	(311,413	)	$	(878,324	)

	Balance Sheet Classification	December 31, 2013			December 31, 2012
Futures and option contracts through December 2014
In gain position		$	250,813		$	893,800
In loss position		(282,660		)	(206,475		)
Cash held by broker		1,212,622			653,956
	Current Asset	$	1,180,775		$	1,341,281

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Risk and Uncertainties (Details)	12 Months Ended
	Dec. 31, 2013
Sales Revenue, Segment [Member] | Ethanol [Member]
Concentration Risk [Line Items]
Concentration Risk, Percentage	76.00%
Sales Revenue, Segment [Member] | Distillers Grains [Member]
Concentration Risk [Line Items]
Concentration Risk, Percentage	21.00%
Sales Revenue, Segment [Member] | Corn Oil [Member]
Concentration Risk [Line Items]
Concentration Risk, Percentage	3.00%
Cost of Goods, Segment [Member] | Corn [Member]
Concentration Risk [Line Items]
Concentration Risk, Percentage	86.00%

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Accounting Policies

12 Months Ended

Dec. 31, 2013

Nature of Business and Significant Accounting Policies [Abstract]

Accounting Estimates

Accounting Estimates: Management uses estimates and assumptions in preparing these financial statements in accordance with United States 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 Cash Equivalents

Cash and Cash Equivalents: The Company maintains its accounts primarily at one financial institution. At various times, the Company's cash balances may exceed amounts insured by the Federal Deposit Insurance Corporation. The Company has not experienced losses in such accounts.

Receivables

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

Investments

Investments: The Company has a less than 20% investment interest in Renewable Products Marketing Group, LLC. This investment is being accounted for under 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. The investment balance is included in other assets and the income recognized as other income. The investment is 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.

Inventories

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

Property and Equipment

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

	Estimated Useful Life in Years
	Minimum	Maximum
Land Improvements	20	40
Buildings	10	40
Equipment	7	40

Land improvements relate to two general categories: road infrastructure and general sitework. Road infrastructure relates to the excavating and paving of surface roads and the sitework includes such things as the well system and earthmoving. Buildings relate to three general categories: grain handling, process and administrative buildings. Equipment relates to three general categories: mechanical equipment, rail handling equipments and administrative and maintenance equipment. Mechanical equipment generally relates to equipment for handling inventories and the production of ethanol and related products, including such things as boilers, cooling towers, grain bins, centrifuges, conveyors, fermentation tanks, pumps and drying equipment. Rail handling equipments relates to railroad track. Administrative and maintenance equipment includes vehicles, computer systems, security equipments, testing devices and shop equipment.

The Company reviewed its usage, continued maintenance and productivity of its processing and production equipment, based on this review the Company reevaluated the useful lives of such equipment. As such, effective October 1, 2012 the Company increased the estimated useful lives on a significant portion of its processing and production equipment from 10 to 15 years. This change in estimate is accounted for on a prospective basis. This change resulted in a decrease in depreciation expense, an increase to operating income and an increase in net income of approximately $750,000, and an increase in income per unit of $8.29 for the Fourth Quarter 2012.

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 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 in 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. The Company has concluded that no impairment is necessary.

Derivative Instruments

Derivative Instruments: The Company evaluates its contracts to determine whether the contracts are derivative instruments. Certain contracts that literally meet the definition of a derivative may be exempted from derivative accounting as normal purchases or normal sales. 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. Contracts that meet the requirements of normal purchases or sales are documented as normal and exempted from the accounting and reporting requirements of derivative accounting.

The Company enters into short-term cash, option and futures contracts as a means of securing purchases of corn, natural gas and sales of ethanol for the plant and managing exposure to changes in commodity and energy prices. All of the Company's derivatives are designated as non-hedge derivatives for accounting purposes, with changes in fair value recognized in net income. Although the contracts are economic hedges of specified risks, they are not designated as and accounted for as hedging instruments.

As part of its trading activity, the Company uses futures and option contracts through regulated commodity exchanges to manage its risk related to pricing of inventories. To reduce that risk, the Company generally takes positions using cash and futures contracts and options.

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 entered through commodity exchanges are presented on the accompanying balance sheet as derivative instruments.

Loan Fees and Utility Rights

Loan Fees and Utility Rights: Utility rights consist of payments to electric and natural gas companies for construction in aid of electric and gas lines to the facility but the Company retains no ownership rights to the assets. The loan fees are amortized over the term of the loan and utility rights are amortized over 15 years or the anticipated useful life utilizing a method that materially approximates the straight-line method. The useful life was determined in part by the length of service agreements the Company has with the utility companies as well as normal usage of such infrastructure.

At December 31, 2013, the Company anticipates the following amortization of Loan Fees and Utility Rights for the twelve month periods ended December 31:

2014	$	164,000
2015	136,000
2016	136,000
2017	136,000
2018	136,000
Thereafter	718,000
Total amortization	$	1,426,000

Revenue 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. The generally occurs upon shipment, loading of the goods or when the customer picks up the goods. Interest income is recognized as earned. Shipping costs incurred by the Company in the sale of ethanol and distiller grains are not specifically identifiable and as a result, revenue from the sale of ethanol and distiller grains is recorded based on the net selling price reported to the Company from the marketer. Rail car lease costs incurred by the Company in the sale and shipment of distiller grain products are included in the cost of goods sold.

Income Taxes

Income Taxes: The Company was formed under sections of the federal and state income tax laws which provide that, in lieu of corporate income taxes, the members separately account for their share of the Company's items of income, deductions, losses and credits. As a result of this election, no income taxes have been recognized in the accompanying financial statements.

Committed Shares to be Redeemed

Committed Shares to be Redeemed: On June 13, 2013, the Company entered into an agreement with Steve Retterath, the Company's largest member, to repurchase and retire all of the membership units owned by Mr. Retterath. The Company agreed to close on this repurchase on or before August 1, 2013. The Company agreed to repurchase and retire 25,860 membership units owned by Mr. Retterath in exchange for $30 million, to be paid in two equal installments payable at closing and on July 1, 2014. The transaction failed to close by the scheduled date due to objections by Mr. Retterath. Due to all conditions of the agreement being met prior to, or on, August 1, 2013, the Company believes that it has a binding agreement with Mr. Retterath; as such the commitment to repurchase and retire the membership units is reflected in the financial statements as if the transaction had closed on August 1, 2013.

Net Income per Unit

Net Income per Unit: Basic and diluted net income per unit is computed by dividing net income by the weighted average number of members' units and members' unit equivalents outstanding during the period. There were no member unit equivalents outstanding during the periods presented; accordingly, the Company's basic and diluted net income per unit are the same.

Prior to, or on, August 1, 2013, the Company believes it has a binding agreement with Steve Retterath to repurchase and retire all 25,860 membership units owned by Mr. Retterath. These membership units have thus been excluded in the determination of net income per unit as presented in the Statement of Operations. The Company is currently involved in litigation with Mr. Retterath. There is potential that Mr. Retterath will continue as a unit holder upon conclusion of the litigation and said membership units would not be redeemed under the repurchase agreement date. If the units are not redeemed, basic and diluted net income per unit, including the 25,860 shares, for the three and twelve months ended December 31, 2013 would be $139.92 and $312.17, respectively.

Environmental Liabilities

Environmental Liabilities: The Company's operations are subject to environmental laws and regulations adopted by various governmental authorities in the jurisdiction in which it operates. These laws require the Company to investigate and remediate the effects of the release or disposal of materials at its locations. Accordingly, the Company has adopted policies, practices and procedures in the areas of pollution control, occupational health and the production, handling, storage and use of hazardous materials to prevent material environmental or other damage, and to limit the financial liability which could result from such events. Environmental liabilities are recorded when the Company's liability is probable and the costs can be reasonably estimated. No expense or liability, including asset retirement obligations, for environmental liabilities has been recorded for the years ended December 31, 2013, 2012, or 2011.

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 twelve months ended December 31, 2013, ethanol sales averaged approximately 76% of total revenues, while approximately 21% of revenues were generated from the sale of distiller grains and 3% of revenues were generated from the sale of corn oil. For the twelve months ended December 31, 2013, corn costs averaged approximately 86% of cost of goods sold.

The Company's operating and financial performance is largely driven by the prices at which it sells ethanol and the net expense of corn. The price of ethanol is influenced by factors such as supply and demand, weather, government policies and programs, and unleaded gasoline and the petroleum markets, although since 2005 the prices of ethanol and gasoline began a divergence 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, and 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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Derivative Instruments (Tables)

12 Months Ended

Dec. 31, 2013

Derivative Instruments [Abstract]

Schedule of Other Derivatives Not Designated as Hedging Instruments, Income Statement Classification

	Income Statement Classification	Realized Gain (Loss)			Change In Unrealized Gain (Loss)			Total Gain (Loss)
Derivatives not designated as hedging instruments: Commodity contracts for the year ended December 31, 2013.
	Cost of Goods Sold	$	5,914,962		$	(436,513	)	$	5,478,449
	Revenue	(60,060		)	(282,660		)	(342,720		)
	Total	$	5,854,902		$	(719,173	)	$	5,135,729
Derivatives not designated as hedging instruments: Commodity contracts for the year ended December 31, 2012.
	Cost of Goods Sold	$	(5,152,176	)	$	998,738		$	(4,153,438	)
Derivatives not designated as hedging instruments: Commodity contracts for the year ended December 31, 2011.
	Cost of Good Sold	$	(562,081	)	$	(311,413	)	$	(873,494	)
	Revenue	(4,830		)	—			(4,830		)
	Total	$	(566,911	)	$	(311,413	)	$	(878,324	)

Schedule of Fair Value of Derivatives Instruments, Balance Sheet

	Balance Sheet Classification	December 31, 2013			December 31, 2012
Futures and option contracts through December 2014
In gain position		$	250,813		$	893,800
In loss position		(282,660		)	(206,475		)
Cash held by broker		1,212,622			653,956
	Current Asset	$	1,180,775		$	1,341,281

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Subsequent Events (Details) (Home Federal Savings Bank [Member], Loans Payable [Member], USD $)	3 Months Ended
	Mar. 31, 2014
Home Federal Savings Bank [Member] | Loans Payable [Member]
Subsequent Event [Line Items]
Debt Instrument, Basis Spread on Variable Rate	3.10%
Debt Instrument, Face Amount	$ 15,000,000
Debt Instrument, Frequency of Periodic Payment	monthly
Debt Instrument, Periodic Payment, Principal	$ 250,000

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Purchase Commitments (Details) (Corn [Member], USD $)	12 Months Ended
	Dec. 31, 2013 bu
Corn [Member]
Long-term Purchase Commitment [Line Items]
Long-term Purchase Commitment, Amount	$ 16,163,000
Long-term Purchase Commitment, Minimum Mass Required	2,500,000

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Statements of Cash Flows (USD $)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income	$ 28,233,908	$ 494,765	$ 36,353,768
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	10,445,877	11,817,100	12,476,253
Unrealized loss (gain) on risk management activities	160,506	259,437	(65,404)
Change in working capital components:
Accounts receivable	(5,099,248)	1,010,396	9,646,266
Inventory	2,257,999	845,702	(540,883)
Prepaid expenses and other	36,256	309,158	(274,102)
Accounts payable and other accrued expenses	(1,756,304)	1,860,217	2,128,525
Net cash provided by operating activities	34,278,994	16,596,775	59,724,423
CASH FLOWS FROM INVESTING ACTIVITIES
Payments for equipment and construction in progress	(2,399,329)	(1,437,370)	(4,275,040)
Increase in other assets	(1,009,857)	(593,348)	(875,188)
Decrease in restricted cash	0	174,687	180,065
Net cash (used in) investing activities	(3,409,186)	(1,856,031)	(4,970,163)
CASH FLOWS FROM FINANCING ACTIVITIES
Increase (decrease) in checks issued in excess of bank balance	0	0	(1,574,710)
Distribution to members	(8,460,635)	(12,029,185)	(13,295,415)
Proceeds from long-term borrowings	130,350,000	24,750,000	0
Redemption of member units	0	0	(1,000,000)
Payments on long-term borrowings	(116,350,000)	(30,533,333)	(33,730,582)
Net cash provided by (used in) financing activities	5,539,365	(17,812,518)	(49,600,707)
Net increase (decrease) in cash	36,409,173	(3,071,774)	5,153,553
Cash and Cash Equivalents - Beginning	2,081,779	5,153,553	0
Cash and Cash Equivalents - Ending	38,490,952	2,081,779	5,153,553
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
Cash paid for interest, net of capitalized interest of none, none, and $59,654, respectively	61,381	256,727	1,019,499
SUPPLEMENTAL SCHEDULE OF NONCASH INVESTING AND FINANCING ACTIVITIES
Equity adjustment in investee	0	215,610	0
Accounts payable related to property and equipment	213,989	0	0
Commitment to redeem membership units	$ 30,000,000	$ 0	$ 0

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Inventory

12 Months Ended

Dec. 31, 2013

Inventory [Abstract]

Inventory

INVENTORY

Inventory consisted of the following as of December 31, 2013 and 2012.

	December 31, 2013		December 31, 2012
Raw Materials	$	4,617,404	$	4,634,704
Work in Process	1,600,041		2,350,304
Finished Goods	1,180,288		2,670,724
Totals	$	7,397,733	$	9,655,732

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Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2013

Fair Value Measurements [Abstract]

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

	Total			Level 1			Level 2		Level 3
Derivative financial instruments
December 31, 2013
Assets	$	250,813		$	250,813		$	—	$	—
Liabilities	(282,660		)	(282,660		)	—		—
December 31, 2012
Assets	$	893,800		$	893,800		$	—	$	—
Liabilities	(206,475		)	(206,475		)	—		—

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Related Party Transactions (Details) (USD $)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Related Party Transaction [Line Items]
Stock Repurchased and Retired During Period, Shares	25,860		1,000
Commitment to redeem membership units	$ 30,000,000	$ 0	$ 0
Stock Repurchased and Retired During Period, Value	0	0	(1,000,000)
Due to Related Parties	30,000,000	0
Director [Member]
Related Party Transaction [Line Items]
Purchases from Related Party	4,347,000	0	16,927,000
Due to Related Parties	0
Investor [Member]
Related Party Transaction [Line Items]
Management Services Agreement Fees with Related Party	$ 139,000	$ 119,000	$ 244,000

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Subsequent Events (Notes)

12 Months Ended

Dec. 31, 2013

Subsequent Events [Abstract]

Subsequent Events

SUBSEQUENT EVENTS

On February 14, 2014, the Company executed amended loan agreements with Home Federal, pursuant to which Home Federal loaned the Company $15 million. The loan requires monthly principal payments of $250,000 plus interest at a rate of LIBOR plus 310 basis points and will mature March 1, 2019. The purpose of this loan is to provide funds to offset the liability associated with the Retterath repurchase agreement discussed in Note 4. The proceeds will be placed in a separate account which will be used to finance the first payment due to Mr. Retterath pursuant to the repurchase agreement.

No other events requiring recognition or disclosure in the financial statements have occurred through February 27, 2014.