10-K/A

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549
Form 10-K/A
Amendment No. 2
(Mark one)
ý	ANNUAL REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
		For the fiscal year ended September 30, 2017
o	TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
		For the transition period from _________ to __________
		Commission file number 000-53041
SOUTHWEST IOWA RENEWABLE ENERGY, LLC
(Exact name of registrant as specified in its charter)
Iowa			20-2735046
(State or other jurisdiction of incorporation or organization)			(I.R.S. Employer Identification No.)
10868 189 th Street, Council Bluffs, Iowa			51503
(Address of principal executive offices)			(Zip Code)
Registrant’s telephone number (712) 366-0392
Securities registered under Section 12(b) of the Exchange Act:			None.
Title of each class			Name of each exchange on which registered
Securities registered under Section 12(g) of the Exchange Act:
Series A Membership Units
(Title of class)
Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes o     No x
Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Exchange Act.  Yes o     No x
Indicate by check mark whether the issuer (1) filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the 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.  Yes o  No o
Indicate by check mark whether the registrant has submitted electronically 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). Yes x     No o
Indicate by check mark if disclosure of delinquent filers in response 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 o       Smaller reporting company x

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

As of March 31, 2017, the aggregate market value of the Membership Units held by non-affiliates (computed by reference to the last price at which the Membership Units were sold) was $46,763,600.

As of September 30, 2017, the Company had 8,993 Series A, 3,334 Series B and 1,000 Series C Membership Units outstanding.

DOCUMENTS INCORPORATED BY REFERENCE—None

EXPLANATORY NOTE		2
PART II		3
Item 8.	Financial Statements and Supplementary Data	3
PART IV		18
Item 15.	Exhibits and Financial Statement Schedules	18
SIGNATURES		20

EXPLANATORY NOTE

The undersigned registrant is filing this Amendment No. 2 to the Annual Report on Form 10-K/A (this “Amendment No. 2”) to amend its Annual Report on Form 10-K for the fiscal year ended September 30, 2017, as filed with the Securities and Exchange Commission (the “SEC”) on December 15, 2017 (the “Original Annual Report”) and as amended by Amendment No. 1 to the Original Annual Report filed with the SEC on December 22, 2017 (“Amendment No. 1”). The purpose of Amendment No. 1 was to correct a technological scrivener error relating to the date of the Auditors’ Opinion Letter and a corrected Auditor’s Opinion Letter was filed with Amendment No. 1. The purpose of this Amendment No. 2 is to amend and restate in its entirety Item 8 of Part II to include the financial statements of the registrant in addition to the corrected Auditors’ Opinion Letter.

In addition, as required by Rule 12b-15 under the Securities Exchange Act of 1934, new certifications by the registrant’s principal executive officer and principal financial officer are being filed/furnished as exhibits to this Amendment No. 2.

Except as expressly described above and as set forth herein, this Amendment No. 2 does not modify the Original Annual Report or Amendment No. 1 in any way, including, without limitation, to reflect events occurring after the date of, or update any of the disclosures included in, the Original Annual Report. Accordingly, this Amendment No. 2 should be read in conjunction with the Original Annual Report and Amendment No. 1 and with the registrant’s other filings with the SEC subsequent to the Original Annual Report.

PART II

Item 8.   Financial Statements and Supplementary Data. 

Report of Independent Registered Public Accounting Firm

To the Board of Directors and Members

Southwest Iowa Renewable Energy, LLC 

We have audited the accompanying balance sheets of Southwest Iowa Renewable Energy, LLC as of September 30, 2017 and 2016, and the related statements of operations, members’ equity, and cash flows for years then ended.  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 financing 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 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 Southwest Iowa Renewable Energy, LLC as of September 30, 2017 and 2016, and the results of its operations and its cash flows for the years then ended in conformity with U.S. generally accepted accounting principles.

/s/ RSM US LLP 

Des Moines, Iowa

December 15, 2017

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SOUTHWEST IOWA RENEWABLE ENERGY, LLC
Balance Sheets
(Dollars in thousands)
	September 30, 2017			September 30, 2016
ASSETS
Current Assets
Cash and cash equivalents	$	1,487		$	3,139
Accounts receivable	1,826			470
Accounts receivable, related party	11,469			13,137
Derivative financial instruments	23			88
Inventory	13,214			9,937
Prepaid expenses and other	441			470
Total current assets	28,460			27,241
Property, Plant and Equipment
Land	2,064			2,064
Plant, building and equipment	225,651			218,417
Office and other equipment	1,511			1,200
	229,226			221,681
Accumulated depreciation	(111,000		)	(99,109		)
Net property, plant and equipment	118,226			122,572
Other Assets	2,143			2,150
Total Assets	$	148,829		$	151,963
LIABILITIES AND MEMBERS' EQUITY
Current Liabilities
Accounts payable	$	3,387		$	3,295
Accounts payable, related parties	165			737
Derivative financial instruments	911			1,526
Accrued expenses	6,943			5,217
Accrued expenses, related parties	168			640
Current maturities of notes payable	6,538			6,517
Total current liabilities	18,112			17,932
Long Term Liabilities
Notes payable, less current maturities	13,026			24,754
Other long-term  liabilities	5,700			6,200
Total long term liabilities	18,726			30,954
Commitments (Notes 9 and 11)
Members' Equity
Members' capital
13,327 Units issued and outstanding	87,165			87,165
Retained earnings	24,826			15,912
Total members' equity	111,991			103,077
Total Liabilities and Members' Equity	$	148,829		$	151,963
See Notes to Financial Statements

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SOUTHWEST IOWA RENEWABLE ENERGY, LLC
Statements of Operations
(Dollars in thousands, except per unit data)
	Year Ended			Year Ended
	September 30, 2017			September 30, 2016
Revenues	$	219,768		$	223,326
Cost of Goods Sold
Cost of goods sold-non hedging	201,376			211,703
Realized & unrealized hedging (gains) losses	(390		)	460
	200,986			212,163
Gross Margin	18,782			11,163
General and administrative expenses	4,787			4,588
Operating Income	13,995			6,575
Other Expense
Interest expense and other income, net	950			1,022
Change in fair value of put option liability	(400		)	460
	550			1,482
Net Income	$	13,445		$	5,093
Weighted Average Units Outstanding -basic	13,327			13,327
Weighted Average Units Outstanding -diluted	14,394			13,327
Income per unit -basic	$	1,008.85		$	382.16
Income per unit -diluted	$	906.28		$	382.16
See Notes to Financial Statements

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SOUTHWEST IOWA RENEWABLE ENERGY, LLC
Statements of Members' Equity
(Dollars in thousands)
	Members' Capital		Retained Earnings			Total
Balance, September 30, 2015	$	87,165	$	14,151		$	101,316
Net Income	—		5,093			5,093
Distributions	—		(3,332		)	(3,332		)
Balance, September 30, 2016	$	87,165	$	15,912		$	103,077
Net Income	—		13,445			13,445
Distributions	—		(4,531		)	(4,531		)
Balance, September 30, 2017	$	87,165	$	24,826		$	111,991
See Notes to Financial Statements

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SOUTHWEST IOWA RENEWABLE ENERGY, LLC
Statements of Cash Flows
(Dollars in thousands)
	Year Ended			Year Ended
	September 30, 2017			September 30, 2016
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income	$	13,445		$	5,093
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation	12,058			11,785
Amortization	71			72
Other assets	7			18
Change in fair value of put option liability	(400		)	460
(Increase) decrease in current assets:
Accounts receivable	312			(9,843		)
Inventories	(3,277		)	4,361
Prepaid expenses and other	29			(143		)
Derivative financial instruments	65			731
Decrease in other long-term liabilities	(100		)	(100		)
Increase (decrease) in current liabilities:
Accounts payable	(480		)	(619		)
Derivative financial instruments	(615		)	867
Accrued expenses	1,254			(420		)
Net cash provided by operating activities	22,369			12,262
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property and equipment	(7,712		)	(4,937		)
Decrease in restricted cash	—			305
Net cash (used in) investing activities	(7,712		)	(4,632		)
CASH FLOWS FROM FINANCING ACTIVITIES
Distributions paid to members	(4,531		)	(3,332		)
Proceeds from notes payable	81,129			163,861
Payments on notes payable	(92,907		)	(168,050		)
Net cash (used in) financing activities	(16,309		)	(7,521		)
Net increase (decrease) in cash and cash equivalents	(1,652		)	109
CASH AND CASH EQUIVALENTS
Beginning	3,139			3,030
Ending	$	1,487		$	3,139
See Notes to Financial Statements
SUPPLEMENTAL CASH FLOW INFORMATION
Cash paid for interest	$	1,067		$	1,346
See Notes to Financial Statements

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SOUTHWEST IOWA RENEWABLE ENERGY, LLC

Notes to Financial Statements

September 30, 2017

Note 1:  Nature of Business

Southwest Iowa Renewable Energy, LLC (the “Company”), located in Council Bluffs, Iowa, was formed in March 2005, operates a 140 million gallon capacity ethanol plant and began producing ethanol in February 2009.  The Company sold 123.7 million gallons and 124.5 million gallons of ethanol in Fiscal 2017 and Fiscal 2016, respectively. The Company sells its ethanol distillers grains, corn syrup, and corn oil in the continental United States, Mexico and the Pacific Rim.

Note 2:  Summary of Significant Accounting Policies

Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period.  Actual results could differ from these estimates.

Cash and Cash Equivalents

The Company considers all highly liquid investments purchased with a maturity of three months or less when purchased to be cash equivalents.

Concentration of Credit Risk

The Company’s cash balances are maintained in bank deposit accounts which at times may exceed federally-insured limits.  The Company has not experienced any losses in such accounts.

Revenue Recognition

The Company sells ethanol and related products pursuant to marketing agreements.  Revenues are recognized when the marketing company has taken title to the product, prices are fixed or determinable and collectability is reasonably assured. 

The Company’s products are generally shipped FOB loading point, and recorded as a sale upon delivery of the applicable bill of lading.  The Company’s ethanol sales are handled through an ethanol purchase agreement (the “Ethanol Agreement”) with Bunge North America, Inc. (“Bunge”).  Syrup and distillers grains (co-products) are sold through a distillers grains agreement (the “DG Agreement”) with Bunge, based on market prices. The Company markets and distributes all of the corn oil it produces directly to end users at market prices.   Carbon dioxide is sold through a Carbon Dioxide Purchase and Sale Agreement (the “CO2 Agreement”) with Air Products and Chemicals, Inc., formerly known as EPCO Carbon Dioxide Products, Inc. ("Air Products”). Marketing fees, agency fees, and commissions due to the marketer are calculated separately from the settlement for the sale of the ethanol products and co-products and are included as a component of cost of goods sold.  Shipping and handling costs incurred by the Company for the sale of ethanol and co-products are included in cost of goods sold.

Accounts Receivable

Accounts receivable are recorded at original invoice amounts less an estimate made for doubtful receivables based on a review of all outstanding amounts on a monthly basis.  Management determines the allowance for doubtful accounts by regularly evaluating individual customer receivables and considering customers’ financial condition, credit history and current economic conditions.  As of September 30, 2017 and 2016, management had determined no allowance is necessary.  Receivables are written off when deemed uncollectable and recoveries of receivables written off are recorded when received.

Risks and Uncertainties

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

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

Investment in Commodities Contracts, Derivative Instruments and Hedging Activities

The Company’s operations and cash flows are subject to fluctuations due to changes in commodity prices.  The Company is subject to market risk with respect to the price and availability of corn, the principal raw material used to produce ethanol and ethanol by-products.  Exposure to commodity price risk results from its dependence on corn in the ethanol production process.  In general, rising corn prices result in lower profit margins and, therefore, represent unfavorable market conditions.  This is especially true when market conditions do not allow the Company to pass along increased corn costs to customers.  The availability and price of corn is subject to wide fluctuations due to unpredictable factors such as weather conditions, farmer planting decisions, governmental policies with respect to agriculture and international trade and global demand and supply.

To minimize the risk and the volatility of commodity prices, primarily related to corn and ethanol, the Company uses various derivative instruments, including forward corn, ethanol and distillers grains purchase and sales contracts, over-the-counter and exchange-trade futures and option contracts.  When the Company has sufficient working capital available, it enters into derivative contracts to hedge its exposure to price risk related to forecasted corn needs and forward corn purchase contracts.  

Management has evaluated the Company’s 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.   Gains and losses on contracts that are designated as normal purchases or normal sales contracts are not recognized until quantities are delivered or utilized in production.

The Company applies the normal sale exemption to forward contracts relating to ethanol, distillers grains, and corn oil and therefore these forward contracts are not marked to market. As of September 30, 2017, the Company was committed to sell 7.0 million gallons of ethanol, 84.7 thousand tons of dried distillers grains, 92.3 thousand tons of wet distillers grains and 3.7 million pounds of corn oil.

Corn purchase contracts are treated as derivative financial instruments.  Changes in fair value of forward corn contracts, which are marked to market each period, are included in costs of goods sold.  As of September 30, 2017, the Company was committed to purchasing 2.9 million bushels of corn on a forward contract basis resulting in a total commitment of $10.3 million.  In addition the Company was committed to purchasing 691.1 thousand bushels of corn using basis contracts.

In addition, the Company enters into short-term cash, options and futures contracts as a means of managing exposure to changes in commodity prices.  The Company enters into derivative contracts to hedge the exposure to volatile commodity price fluctuations.  The Company maintains a risk management strategy that uses derivative instruments to minimize significant, unanticipated earnings fluctuations caused by market volatility.  The Company’s specific goal is to protect itself from large moves in commodity costs.  All derivatives are designated as non-hedge derivatives and the contracts will be accounted for at fair value.  Although the contracts are considered effective economic hedges of specified risks, they are not designated as or accounted for as hedging instruments.

Derivatives not designated as hedging instruments along with cash due to brokers at September 30, 2017 and 2016 are as follows:

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	Balance Sheet Classification	September 30, 2017			September 30, 2016
		in 000's			in 000's
Futures and option contracts
In gain position		$	190		$	361
In loss position		(100		)	(20		)
Cash (due to) broker		(67		)	(253		)
	Current asset	23			88
Forward contracts, corn	Current liability	911			1,526
Net futures, options, and forward contracts		$	(888	)	$	(1,438	)

The net realized and unrealized gains and losses on the Company’s derivative contracts for the years ended September 30, 2017 and 2016 consist of the following:

	Statement of Operations Classification	September 30, 2017			September 30, 2016
Net realized and unrealized (gains) losses related to:		(in 000's)			(in 000's)
Forward purchase contracts (corn)	Cost of Goods Sold	$	1,590		$	6,468
Futures and option contracts (corn)	Cost of Goods Sold	(1,980		)	(6,008		)
Futures and option contracts (ethanol)	Revenue	—			429

Inventory

Inventory is stated at the lower of average cost or net realizable value. In the valuation of inventories and purchase commitments, net realizable value is defined as estimated selling price in the ordinary course of business less reasonable predictable costs of completion, disposal and transportation.

Property and Equipment

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

Buildings	40 Years
Process Equipment	10 - 20 Years
Office Equipment	3-7 Years

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 group may not be recoverable.   An impairment loss would be recognized when estimated undiscounted future cash flows from 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. Management has determined there were no events or changes in circumstances that required an impairment evaluation during Fiscal 2017 or Fiscal 2016.

Income Taxes

The Company has elected to be treated as a partnership for federal and state income tax purposes and generally does not incur income taxes.  Instead, the Company’s earnings and losses are included in the income tax returns of the members.  Therefore, no provision or liability for federal or state income taxes has been included in these financial statements.

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Management has evaluated the Company’s tax positions under the Financial Accounting Standards Board issued guidance on accounting for uncertainty in income taxes and concluded that the Company has taken no uncertain tax positions that require adjustment to the financial statements to comply with the provisions of this guidance.  

Fair value of financial instruments

The carrying amounts of cash and cash equivalents, derivative financial instruments, accounts receivable, accounts payable and accrued expenses approximate fair value due to the short term nature of these instruments.

The put option liability consists of an agreement between the Company and ICM that contains a conditional obligation to repurchase feature. In accordance with accounting for put options as a liability, the Company calculated the fair value of the put option under Level 3, using a valuation model called the Monte Carlo Simulation. Using this model, the estimated value at September 30, 2017 and 2016 was 5.7 million and $6.1 million, respectively.

The carrying amount of the notes payable approximates fair value, as the interest rate is a floating rate. The terms are consistent with those available in the market as of September 30, 2017 and 2016, using level 3 inputs.

Income Per Unit

Basic income per unit is calculated by dividing net income by the weighted average units outstanding for each period. Diluted income per unit is adjusted for convertible debt, using the treasury stock method and the put option using the reverse treasury stock method. In Fiscal 2016, the put option did not impact diluted income per unit as it was anti-dilutive. Basic earnings and diluted per unit data were computed as follows (in thousands except per unit data):

	Twelve Months Ended
	September 30, 2017			September 30, 2016
Numerator:
Net income for basic earnings per unit	$	13,445		$	5,093
Change in fair value of put option liability	$	(400	)	$	—
Net income for diluted earnings per unit	$	13,045		$	5,093
Denominator:
Weighted average units outstanding - basic	13,327			13,327
Weighted average units outstanding - diluted	14,394			13,327
Income per unit - basic	$	1,008.85		$	382.16
Income per unit - diluted	$	906.28		$	382.16

Recently Issued Accounting Pronouncements

Revenue Recognition

In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606), which supersedes all existing revenue recognition requirements, including most industry-specific guidance. The new standard requires a company to recognize revenue when it transfers goods or services to customers in an amount that reflects the consideration that the company expects to receive for those goods or services. The new standard will be effective for us on October 1, 2018. The Company expects to have enhanced disclosures, but does not expect the new standard to have a material impact on the Company's financial statements.

Leases

In February 2016, FASB issued ASU 2016-02 "Leases” ("ASU 2016-02"). ASU 2016-02 requires the recognition of lease assets and lease liabilities by lessees for all leases greater than one year in duration and classified as operating leases under previous GAAP. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, and for interim periods within that

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fiscal year. We will not implement ASU 2016-02 until October 2019, when Fiscal 2020 starts. The Company does not expect the new standard to have a material impact on the Company's financial statements.

Interest - Imputation of Interest

In April 2015, the Financial Accounting Standards Board issued ASU 2015-03 that simplifies the presentation of debt issuance costs and requires that debt issuance costs related to a recognized debt liability be presented in the statement of financial position as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. This was adopted for the presentation of 2017 financial documents, and we made reclassifications to the 2016 financial statements to conform with the 2017 presentation. There was no impact on financial position or results of operations.

Note 3:  Inventory

Inventory is comprised of the following at:

	September 30, 2017		September 30, 2016
	(in 000's)		(in 000's)
Raw Materials - corn	$	4,010	$	2,924
Supplies and Chemicals	4,149		3,293
Work in Process	1,486		1,271
Finished Goods	3,569		2,449
Total	$	13,214	$	9,937

Note 4:   Members’ Equity

At September 30, 2017 and 2016 outstanding member units were:

	September 30, 2017	September 30, 2016
A Units	8,993	8,993
B Units	3,334	3,334
C Units	1,000	1,000
	13,327	13,327

The Series A, B and C unit holders all vote on certain matters with equal rights.  The Series C unit holders as a group have the right to elect one Board member.  The Series B unit holders as a group have the right to elect the number of Board members which bears the same proportion to the total number of Directors in relation to Series B outstanding units to total outstanding units. Based on this calculation, the Series B unit holders have the right to elect two Board members.  Series A unit holders as a group have the right to elect the four remaining Directors not elected by the Series C and B unit holders.

Note 5:   Revolving Loan/Credit Agreements

FCSA/CoBank

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During Fiscal 2014, the Company entered into a credit agreement with Farm Credit Services of America, FLCA (“FCSA”) and CoBank, ACB, as cash management provider and agent (“CoBank”) which provides the Company with a term loan in the amount of $30,000,000 (the “Term Loan”) and a revolving term loan in the amount of up to $36,000,000 (the “Revolving Term Loan ", and together with the Term Loan, the “FCSA Credit Facility”). The FCSA Credit Facility is secured by a security interest on all of the Company’s assets.

The Term Loan provides for payments by the Company to FCSA of quarterly installments of $1,500,000, which began on December 20, 2014 with a maturity date of September 20, 2019. The Revolving Term Loan has a maturity date of June 1, 2023 and requires annual reductions in principal availability of $6,000,000 commencing on June 1, 2020. Under the FCSA Credit Facility, the Company has the right to select from the several LIBOR based interest rate options with respect to each of the Term Loan and the Revolving Term Loan.

As of September 30, 2017, there was $16.1 million outstanding under the FCSA Credit Facility, with $31.9 million available under the Revolving Term Loan.

Financing costs associated with the Credit Agreement Facility are recorded at cost and include expenditures directly related to securing debt financing.  The Company amortizes financing costs using the effective interest method over the term of the related debt. In 2017, we adopted ASU number 2015-03 to recognize the financing costs as a direct deduction from the carrying amount of the debt liability. The 2016 statements were revised to reflect this reclassification.

Note 6: Notes Payable

Notes payable consists of the following (in 000's):
	September 30, 2017		September 30, 2016
Term loan bearing interest at LIBOR plus 3.35% (4.59% at September 30, 2017)	$	12,000	$	18,000
Revolving term loan bearing interest at LIBOR plus 3.35% (4.59% at September 30 2017)	4,100		9,361
Other with interest rates from 3.50% to 4.15% and maturities through 2022	3,666		4,183
	19,766		31,544
Less Current Maturities	6,538		6,517
Less Financing Costs, net of amortization	202		273
Total Long Term Debt	13,026		24,754

Approximate aggregate maturities of notes payable as of September 30, 2017 are as follows (in 000's):

2018	$	6,538
2019	6,560
2020	579
2021	589
2022	1,400
2023 and Thereafter	4,100
Total	$	19,766

Note 7:  Fair Value Measurement

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Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.  In determining fair value, the Company used various methods including market, income and cost approaches.  Based on these approaches, the Company often utilized certain assumptions that market participants would use in pricing the asset or liability, including assumptions about risk and/or the risks inherent in the inputs to the valuation technique.  These inputs can be readily observable, market corroborated, or generally unobservable inputs.  The Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs.  Based on the observable inputs used in the valuation techniques, the Company is required to provide the following information according to the fair value hierarchy.

The fair value hierarchy ranks the quality and reliability of the information used to determine fair values.  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 classifications of such instruments pursuant to the valuation hierarchy, is set below.

Put Option liability. The put option liability consists of an agreement between the Company and ICM that contains a conditional obligation to repurchase feature. In accordance with accounting for put options as a liability, the Company calculated the fair value of the put option under Level 3, using a valuation model called the Monte Carlo Simulation.

Derivative financial statements.  Commodity futures and exchange traded options 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 Chicago Mercantile Exchange (“CME”) market.  Ethanol contracts are reported at fair value utilizing Level 2 inputs from third-party pricing services.  Forward purchase contracts are reported at fair value utilizing Level 2 inputs.   For these contracts, the Company obtains fair value measurements from local grain terminal values.  The fair value measurements consider observable data that may include live trading bids from local elevators and processing plants which are based off the CME market.

The following table summarizes financial instruments measured at fair value on a recurring basis as of September 30, 2017 and 2016, categorized by the level of the valuation inputs within the fair value hierarchy: (dollars in '000s)

15

	September 30, 2017
	Level 1		Level 2		Level 3
Assets:
Derivative financial instruments	$	190	$	—	$	—
Liabilities:
Derivative financial instruments	100		911		—
Put Option Liability	—		—		5,700
	September 30, 2016
	Level 1		Level 2		Level 3
Assets:
Derivative financial instruments	$	361	$	—	$	—
Liabilities:
Derivative financial instruments	20		1,526		—
Put Option Liability	—		—		6,100

The following table summarizes the assumptions used in computing the fair value of the put option subject to fair value:

	September 30, 2017			September 30, 2016
Expected dividend yield	—			—
Risk-free interest rate	1.34		%	0.63		%
Expected volatility	26		%	32		%
Expected life (years)	1.25			1.25
Exercise price	$	10,897		$	10,897
Company unit price	$	5,670		$	5,200

The following table reflects the activity for liabilities measured at fair value using Level 3 inputs as of September 30, 2017:

	September 30, 2017			September 30, 2016
Beginning Balance	$	6,100		$	5,640
Change in Value	(400		)	460
Ending Balance	$	5,700		$	6,100

Note 8:   Incentive Compensation

The Company has an equity incentive plan which provides that the Board of Directors may make awards of equity appreciation units (“EAU”) and equity participation units (“EPU”) to employees from time to time, subject to vesting provisions as determined for each award. There are no EAUs outstanding. The EPUs are valued in accordance with the agreement which is based on the book value per unit of the Company. The Company had 83.3 unvested EPUs outstanding under this plan as of September 30, 2017, which will vest three years from the dates of the awards.  

During the Fiscal 2017 and 2016, the Company recorded compensation expense related to this plan of approximately $342,000 and $191,000, respectively.  As of September 30, 2017 and 2016, the Company had a liability of approximately $844,000 and $502,000, respectively, recorded within accrued expenses on the balance sheet. The incentive compensation expense to be recognized in future periods at September 30, 2017 and 2016 was $252,000 and $215,000, respectively.

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Note 9:   Related Party Transactions and Major Customers

Related Party Transactions

Bunge

On December 5, 2014, the Company entered into an Amended and Restated Ethanol Purchase Agreement (the “Ethanol Agreement”) with Bunge. Under the Ethanol Agreement, the Company has agreed to sell Bunge all of the ethanol produced by the Company, and Bunge has agreed to purchase the same.  The Company will pay Bunge a percentage marketing fee for ethanol sold by Bunge, subject to a minimum and maximum annual fee.  The initial term of the Ethanol Agreement expires on December 31, 2019, however it will automatically renew for one five-year term unless Bunge provides the Company with notice of election to terminate. The Company has incurred ethanol marketing expenses of $1.5 million in each year for Fiscal 2017 and 2016, under the Ethanol Agreement.

On June 26, 2009, the Company executed a Railcar Agreement with Bunge for the lease of 325 ethanol cars and 300 hopper cars which are used for the delivery and marketing of ethanol and distillers grains. In November 2016, we reduced the number of leased ethanol cars to 323 and in both November 2013 and January 2015 we reduced the number of hopper cars by one for a total of 298 leased hopper cars).  Under the Railcar Agreement, the Company leases railcars for terms lasting 120 months and continuing on a month to month basis thereafter.  The Railcar Agreement will terminate upon the expiration of all railcar leases.  Expenses under this agreement were $4.0 million and $4.4 million for the Fiscal 2017 and 2016, net of subleases and accretion, respectively. In November 2016, the Company entered into a sublease for 96 hoppers with Bunge that is set to expire on March 24, 2019. The Company has subleased another 92 hopper cars to unrelated third parties, which expires March 25, 2019. The Company continues to work with Bunge to determine the need for ethanol and hopper cars in light of current market conditions, and the expected conditions in 2017 and beyond. The Company believes we will be able to fully utilize our fleet of hopper cars in the future, to allow us to cost-effectively ship distillers grains to distant markets, primarily the export markets.                    

On December 5, 2014, the Company and Bunge entered into an Amended and Restated Distiller’s Grain Purchase Agreement (the “ DG Purchase Agreement ”).  Under the DG Purchase Agreement, Bunge will purchase all distiller’s grains produced by the Company, and will receive a marketing fee based on the net sale price of distillers grains, subject to a minimum and maximum annual fee.  The initial term of the DG Purchase Agreement expires on December 31, 2019  and will automatically renew for one additional five year term unless Bunge provides notice of election to the Company to terminate. The Company has incurred distillers grains marketing expenses of $1.1 million and $1.3 million during Fiscal 2017 and 2016, respectively.

The Company and Bunge also entered into an Amended and Restated Grain Feedstock Agency Agreement on December 5, 2014 (the “ Agency Agreement ”).  The Agency Agreement provides that Bunge will procure corn for the Company, the Company will pay Bunge a per bushel fee, subject to a minimum and maximum annual fee.  The initial term of the Agency Agreement expires on December 31, 2019 and will automatically renew for one additional five year term unless Bunge provides notice of election to the Company to terminate. Expenses for corn procurement by Bunge were $0.7 million for each year of the fiscal years ended September 30, 2017 and 2016. The Company has outstanding corn contracts of 181 thousand bushels with a $620 thousand liability as of September 30, 2017, and 258 thousand bushels with a $900 thousand liability as of September 30, 2016 included in derivative financial instruments liability on the balance sheet.

Starting with the 2015 crop year, the Company is using corn containing Syngenta Seeds, Inc.’s proprietary Enogen® technology (“ Enogen Corn ”) for a portion of its ethanol production needs.  The Company contracts directly with growers to produce Enogen Corn for sale to the Company.  The Company has contracted for 28,900 acres of Enogen corn for Fiscal 2018. Concurrent with the Agency Agreement, the Company and Bunge entered into a Services Agreement regarding corn purchases (the “ Services Agreement ”).  Under this agreement, the Company originates all Enogen Corn contracts for its facility and Bunge assists the Company with certain administrative matters related to Enogen Corn, including facilitating delivery to the facility.  The Company pays Bunge a per bushel service fee.  The initial term of the Services Agreement expires on December 31, 2019 and will automatically renew for one additional five year term unless Bunge provides notice of election to the Company to terminate. Expenses under the Services Agreement are included as part of the Amended and Restated Grain Feedstock Agency Agreement discussed above.

ICM

In connection with the payoff of the ICM subordinated debt, the Company entered into the SIRE ICM Unit Agreement dated December 17, 2014 (the “ Unit Agreement ”).  Under the Unit Agreement, the Company granted ICM the right to sell to the

17

Company its 1,000 Series C and 18 Series A Membership Units (the “ ICM Units ”) commencing anytime during the earliest of  several alternative dates and events at the greater of $10,897 per unit or the fair market value (as defined in the agreement) on the date of exercise. The Company recorded a liability of $5.6 million (included in long-term liabilities) in 2015, and recorded an additional expense of $460 thousand in Fiscal 2016, and in Fiscal 2017 reduced expense by $400 thousand in conjunction with this put right under the Unit Agreement (the "Loss from debt extinguishment" and the "Change in fair value of put option liability" ). See Note 7 Fair Value Measurement, for the terms of this agreement.

Major Customers

The Company is party to the Ethanol Agreement and the Distillers Grain Purchase Agreement with Bunge for the exclusive marketing, selling, and distributing of all of the ethanol and distillers grains produced by the Company.  The Company has expensed $2.6 million and $2.8 million in marketing fees under these agreements for Fiscal 2017 and 2016, respectively. Revenues with this customer were $208.8 million and $214.5 million, respectively, for Fiscal 2017 and 2016.   Trade accounts receivable due from Bunge were $11.5 million and $13.1 million as of September 30, 2017 and 2016, respectively.

Note 10: Commitments

The Company has entered into a steam contract with an unrelated party under which the vendor agreed to provide the steam required by the Company, up to 475,000 pounds per hour. The Company agreed to pay a net energy rate for all steam provided under the contract as well as a monthly demand charge. The net energy rate is set for the first three years then adjusted each year beginning on the third anniversary date.  The steam contract was renewed effective January 1, 2013, and will remain in effect until November 30, 2024.  Expenses under this agreement for the years ended September 30, 2017 and 2016 were $5.1 million and $3.7 million, respectively.

The Company leases certain equipment, railcars, vehicles, and operating facilities under non-cancellable operating leases that expire on various dates through 2019.  The future minimum lease payments required under these leases (net of sublease income) are  $4.6 million in 2018, and $2.1 million in 2019.  Rent expense (net of sublease income) related to operating leases for the years ended September 30, 2017 and 2016 was $4.6 million and $4.7 million, respectively. Non Related party sublease totals were $0.7 million in each year for 2017 and 2016.  The majority of the future minimum lease payments are due to Bunge. Future sublease income is due from unrelated third parties.

PART IV

Item 15.  Exhibits and Financial Statement Schedules.

(a) Documents filed as part of this Report.

Balance Sheets

Statements of Operations

Statements of Members’ Equity

Statements of Cash Flows

Notes to Financial Statements

(b) The following exhibits are filed herewith or incorporated by reference as set forth below:

31.1	Rule 13a-14(a)/15d-14(a) Certification (pursuant to Section 302 of the Sarbanes-Oxley Act of 2002) executed by the Principal Executive Officer. (filed herewith)
31.2	Rule 13a-14(a)/15d-14(a) Certification (pursuant to Section 302 of the Sarbanes-Oxley Act of 2002) executed by the Principal Financial Officer. (filed herewith)

18

19

SIGNATURES

In accordance with the requirements of the Exchange Act, the Registrant has caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

		SOUTHWEST IOWA RENEWABLE ENERGY, LLC
Date:	April 3, 2018	/s/ Brian T. Cahill
		Brian T. Cahill, President and Chief Executive Officer
Date:	April 3, 2018	/s/ Brett L. Frevert
		Brett L. Frevert, CFO and Principal Financial Officer

20

EX-31.1

Exhibit 31.1

CERTIFICATION PURSUANT TO 17 CFR 240.13(A)-14(A)

(SECTION 302 CERTIFICATION)

I, Brian T. Cahill, certify that:

1. I have reviewed this annual report on Form 10-K/A Amendment No. 2 of Southwest Iowa Renewable Energy, LLC;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of  the registrant as of, and for, the periods presented in this report;

Date:	April 3, 2018	/s/ Brian T. Cahill
		Brian T. Cahill, President and Chief Executive Officer
		(Principal Executive Officer)

EX-31.2

Exhibit 31.2

CERTIFICATION PURSUANT TO 17 CFR 240.13(A)-14(A)

(SECTION 302 CERTIFICATION)

I, Brett L. Frevert, certify that:

1. I have reviewed this annual report on Form 10-K/A Amendment No. 2 of Southwest Iowa Renewable Energy, LLC;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant, as of, and for, the periods presented in this report;

Date:	April 3, 2018	/s/ Brett L. Frevert
		Brett L. Frevert, CFO
		(Principal Financial Officer)

XML

Document And Entity Information	12 Months Ended
	Sep. 30, 2017 USD ($) shares
Entity Registrant Name	Southwest Iowa Renewable Energy, LLC
Entity Central Index Key	0001424844
Current Fiscal Year End Date	--09-30
Entity Filer Category	Smaller Reporting Company
Document Type	10-K
Document Period End Date	Sep. 30, 2017
Document Fiscal Year Focus	2017
Document Fiscal Period Focus	FY
Amendment Flag	false
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Public Float | $	$ 52,134,000
Common Class A [Member]
Entity Common Stock, Shares Outstanding	8,810
Common Class B [Member]
Entity Common Stock, Shares Outstanding	3,334
Common Class C [Member]
Entity Common Stock, Shares Outstanding	1,000

XML

Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2017	Sep. 30, 2016
Current Assets
Cash and cash equivalents	$ 1,487	$ 3,139
Accounts receivable	1,826	470
Accounts receivable, related party	11,469	13,137
Derivative financial instruments	23	88
Inventory	13,214	9,937
Prepaid expenses and other	441	470
Total current assets	28,460	27,241
Property, Plant, and Equipment
Land	2,064	2,064
Plant, building and equipment	225,651	218,417
Office and other equipment	1,511	1,200
Total Cost	229,226	221,681
Accumulated depreciation	(111,000)	(99,109)
Net property and equipment	118,226	122,572
Other Assets
Other assets	2,143	2,150
Total Assets	148,829	151,963
Current Liabilities
Accounts payable	3,387	3,295
Accounts payable, related parties	165	737
Derivative financial instruments, related party	911	1,526
Accrued expenses	6,943	5,217
Accrued expenses, related parties	168	640
Long-term Debt, Current Maturities	6,538	6,517
Total current liabilities	18,112	17,932
Long-term Debt, Excluding Current Maturities	13,026	24,754
Long Term Liabilities
Other long-term liabilities	5,700	6,200
Total long term liabilities	18,726	30,954
Members' Equity
Members' capital, 13,139 Units issued and outstanding	87,165	87,165
Accumulated profit (deficit)	24,826	15,912
Total members' equity	111,991	103,077
Total Liabilities and Members' Equity	$ 148,829	$ 151,963

XML

Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2017	Sep. 30, 2016
Financing costs, amortization	$ 162	$ 90
Members' capital, units issued	13,327	13,327
Members' capital, units outstanding	13,327	13,327

XML

Statements Of Operations - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Earnings Per Share, Basic	$ 1,008.85	$ 382.16
Earnings Per Share, Diluted	$ 906.28	$ 382.16
Revenues	$ 219,768	$ 223,326
Cost of Goods Sold
Cost of goods sold-non hedging	201,376	211,703
Realized & unrealized hedging (gains)	(390)	460
Cost of Goods Sold	200,986	212,163
Gross Margin	18,782	11,163
General and administrative expenses	4,787	4,588
Operating Income	13,995	6,575
Other Income (Expense)
Interest Income (Expense), Net	950	1,022
Increase (Decrease) in Put Options	(400)	460
Other (Income) Expense	(550)	(1,482)
Net (Loss)	$ 13,445	$ 5,093
Weighted Average Number of Shares Outstanding, Basic	13,327	13,327
Weighted Average Number of Shares Outstanding, Diluted	14,394	13,327

XML

Statement Of Members' Equity - USD ($) $ in Thousands	Total	Member Contribution [Member]	Retained Earnings [Member]	Equity Component [Member]
Balance at Sep. 30, 2015		$ 87,165	$ 14,151	$ 101,316
Balance at Sep. 30, 2016		87,165	15,912	103,077
Net (loss)	$ 5,093	0	5,093	5,093
Distribution Made to Limited Liability Company (LLC) Member, Cash Distributions Paid	3,332	0	(3,332)	(3,332)
Retained Earnings (Accumulated Deficit)	15,912
Balance at Sep. 30, 2017		87,165	24,826	111,991
Net (loss)	13,445			13,445
Distribution Made to Limited Liability Company (LLC) Member, Cash Distributions Paid	4,531	$ 0	$ (4,531)	$ (4,531)
Retained Earnings (Accumulated Deficit)	$ 24,826

XML

Condensed Statements Of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Net Income (Loss) Available to Common Stockholders, Basic	$ 13,445	$ 5,093
Adjustments to reconcile net (loss) to net cash provided by operating activities:
Depreciation	12,058	11,785
Amortization	71	72
Other assets	7	18
Increase (Decrease) in Put Options	(400)	460
(Increase) decrease in current assets:
Accounts receivable	312	(9,843)
Inventories	(3,277)	4,361
Prepaid expenses and other	29	(143)
Increase decrease in accounts receivable held by brokerage	65	731
Increase (decrease) in current liabilities:
Decrease in other long-term liabilities	(100)	(100)
Accounts payable	(480)	(619)
Derivative financial instruments, related party	(615)	867
Accrued expenses	1,254	(420)
Net cash provided by operating activities	22,369	12,262
Cash Flows From Investing Activities
Purchase of property and equipment	(7,712)	(4,937)
Increase in restricted cash	0	305
Net cash (used in) investing activities	(7,712)	(4,632)
Cash Flows From Financing Activities
Distribution Made to Limited Liability Company (LLC) Member, Cash Distributions Paid	4,531	3,332
Proceeds from notes payable	81,129	163,861
Payments on borrowings	(92,907)	(168,050)
Net cash (used in) financing activities	(16,309)	(7,521)
Net increase (decrease) in cash and cash equivalents	(1,652)	109
Cash And Equivalents-Beginning	3,139	3,030
Cash And Equivalents-Ending	1,487	3,139
Supplemental Cash Flow Information [Abstract]
Cash paid for interest	$ 1,067	$ 1,346

XML

Nature Of Business

12 Months Ended

Sep. 30, 2017

Nature Of Business [Abstract]

Nature Of Business

Nature of Business

Southwest Iowa Renewable Energy, LLC (the “Company”), located in Council Bluffs, Iowa, was formed in March 2005, operates a 140 million gallon capacity ethanol plant and began producing ethanol in February 2009.  The Company sold 123.7 million gallons and 124.5 million gallons of ethanol in Fiscal 2017 and Fiscal 2016, respectively. The Company sells its ethanol distillers grains, corn syrup, and corn oil in the continental United States, Mexico and the Pacific Rim.

XML

Summary Of Significant Accounting Policies

12 Months Ended

Sep. 30, 2017

Accounting Policies [Abstract]

Significant Accounting Policies [Text Block]

Summary of Significant Accounting Policies

Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period.  Actual results could differ from these estimates.

Cash and Cash Equivalents

The Company considers all highly liquid investments purchased with a maturity of three months or less when purchased to be cash equivalents.

Concentration of Credit Risk

The Company’s cash balances are maintained in bank deposit accounts which at times may exceed federally-insured limits.  The Company has not experienced any losses in such accounts.

Revenue Recognition

The Company sells ethanol and related products pursuant to marketing agreements.  Revenues are recognized when the marketing company has taken title to the product, prices are fixed or determinable and collectability is reasonably assured. 

The Company’s products are generally shipped FOB loading point, and recorded as a sale upon delivery of the applicable bill of lading.  The Company’s ethanol sales are handled through an ethanol purchase agreement (the “Ethanol Agreement”) with Bunge North America, Inc. (“Bunge”).  Syrup and distillers grains (co-products) are sold through a distillers grains agreement (the “DG Agreement”) with Bunge, based on market prices. The Company markets and distributes all of the corn oil it produces directly to end users at market prices.   Carbon dioxide is sold through a Carbon Dioxide Purchase and Sale Agreement (the “CO2 Agreement”) with Air Products and Chemicals, Inc., formerly known as EPCO Carbon Dioxide Products, Inc. ("Air Products”). Marketing fees, agency fees, and commissions due to the marketer are calculated separately from the settlement for the sale of the ethanol products and co-products and are included as a component of cost of goods sold.  Shipping and handling costs incurred by the Company for the sale of ethanol and co-products are included in cost of goods sold.

Accounts Receivable

Accounts receivable are recorded at original invoice amounts less an estimate made for doubtful receivables based on a review of all outstanding amounts on a monthly basis.  Management determines the allowance for doubtful accounts by regularly evaluating individual customer receivables and considering customers’ financial condition, credit history and current economic conditions.  As of September 30, 2017 and 2016, management had determined no allowance is necessary.  Receivables are written off when deemed uncollectable and recoveries of receivables written off are recorded when received.

Risks and Uncertainties

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

Investment in Commodities Contracts, Derivative Instruments and Hedging Activities

The Company’s operations and cash flows are subject to fluctuations due to changes in commodity prices.  The Company is subject to market risk with respect to the price and availability of corn, the principal raw material used to produce ethanol and ethanol by-products.  Exposure to commodity price risk results from its dependence on corn in the ethanol production process.  In general, rising corn prices result in lower profit margins and, therefore, represent unfavorable market conditions.  This is especially true when market conditions do not allow the Company to pass along increased corn costs to customers.  The availability and price of corn is subject to wide fluctuations due to unpredictable factors such as weather conditions, farmer planting decisions, governmental policies with respect to agriculture and international trade and global demand and supply.

To minimize the risk and the volatility of commodity prices, primarily related to corn and ethanol, the Company uses various derivative instruments, including forward corn, ethanol and distillers grains purchase and sales contracts, over-the-counter and exchange-trade futures and option contracts.  When the Company has sufficient working capital available, it enters into derivative contracts to hedge its exposure to price risk related to forecasted corn needs and forward corn purchase contracts.  

Management has evaluated the Company’s 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.   Gains and losses on contracts that are designated as normal purchases or normal sales contracts are not recognized until quantities are delivered or utilized in production.

The Company applies the normal sale exemption to forward contracts relating to ethanol, distillers grains, and corn oil and therefore these forward contracts are not marked to market. As of September 30, 2017, the Company was committed to sell 7.0 million gallons of ethanol, 84.7 thousand tons of dried distillers grains, 92.3 thousand tons of wet distillers grains and 3.7 million pounds of corn oil.

Corn purchase contracts are treated as derivative financial instruments.  Changes in fair value of forward corn contracts, which are marked to market each period, are included in costs of goods sold.  As of September 30, 2017, the Company was committed to purchasing 2.9 million bushels of corn on a forward contract basis resulting in a total commitment of $10.3 million.  In addition the Company was committed to purchasing 691.1 thousand bushels of corn using basis contracts.

In addition, the Company enters into short-term cash, options and futures contracts as a means of managing exposure to changes in commodity prices.  The Company enters into derivative contracts to hedge the exposure to volatile commodity price fluctuations.  The Company maintains a risk management strategy that uses derivative instruments to minimize significant, unanticipated earnings fluctuations caused by market volatility.  The Company’s specific goal is to protect itself from large moves in commodity costs.  All derivatives are designated as non-hedge derivatives and the contracts will be accounted for at fair value.  Although the contracts are considered effective economic hedges of specified risks, they are not designated as or accounted for as hedging instruments.

Derivatives not designated as hedging instruments along with cash due to brokers at September 30, 2017 and 2016 are as follows:

	Balance Sheet Classification	September 30, 2017			September 30, 2016
		in 000's			in 000's
Futures and option contracts
In gain position		$	190		$	361
In loss position		(100		)	(20		)
Cash (due to) broker		(67		)	(253		)
	Current asset	23			88
Forward contracts, corn	Current liability	911			1,526
Net futures, options, and forward contracts		$	(888	)	$	(1,438	)

The net realized and unrealized gains and losses on the Company’s derivative contracts for the years ended September 30, 2017 and 2016 consist of the following:

	Statement of Operations Classification	September 30, 2017			September 30, 2016
Net realized and unrealized (gains) losses related to:		(in 000's)			(in 000's)
Forward purchase contracts (corn)	Cost of Goods Sold	$	1,590		$	6,468
Futures and option contracts (corn)	Cost of Goods Sold	(1,980		)	(6,008		)
Futures and option contracts (ethanol)	Revenue	—			429

Inventory

Inventory is stated at the lower of average cost or net realizable value. In the valuation of inventories and purchase commitments, net realizable value is defined as estimated selling price in the ordinary course of business less reasonable predictable costs of completion, disposal and transportation.

Property and Equipment

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

Buildings	40 Years
Process Equipment	10 - 20 Years
Office Equipment	3-7 Years

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 group may not be recoverable.   An impairment loss would be recognized when estimated undiscounted future cash flows from 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. Management has determined there were no events or changes in circumstances that required an impairment evaluation during Fiscal 2017 or Fiscal 2016.

Income Taxes

The Company has elected to be treated as a partnership for federal and state income tax purposes and generally does not incur income taxes.  Instead, the Company’s earnings and losses are included in the income tax returns of the members.  Therefore, no provision or liability for federal or state income taxes has been included in these financial statements.

Management has evaluated the Company’s tax positions under the Financial Accounting Standards Board issued guidance on accounting for uncertainty in income taxes and concluded that the Company has taken no uncertain tax positions that require adjustment to the financial statements to comply with the provisions of this guidance.  

Fair value of financial instruments

The carrying amounts of cash and cash equivalents, derivative financial instruments, accounts receivable, accounts payable and accrued expenses approximate fair value due to the short term nature of these instruments.

The put option liability consists of an agreement between the Company and ICM that contains a conditional obligation to repurchase feature. In accordance with accounting for put options as a liability, the Company calculated the fair value of the put option under Level 3, using a valuation model called the Monte Carlo Simulation. Using this model, the estimated value at September 30, 2017 and 2016 was 5.7 million and $6.1 million, respectively.

The carrying amount of the notes payable approximates fair value, as the interest rate is a floating rate. The terms are consistent with those available in the market as of September 30, 2017 and 2016, using level 3 inputs.

Income Per Unit

Basic income per unit is calculated by dividing net income by the weighted average units outstanding for each period. Diluted income per unit is adjusted for convertible debt, using the treasury stock method and the put option using the reverse treasury stock method. In Fiscal 2016, the put option did not impact diluted income per unit as it was anti-dilutive. Basic earnings and diluted per unit data were computed as follows (in thousands except per unit data):

	Twelve Months Ended
	September 30, 2017			September 30, 2016
Numerator:
Net income for basic earnings per unit	$	13,445		$	5,093
Change in fair value of put option liability	$	(400	)	$	—
Net income for diluted earnings per unit	$	13,045		$	5,093
Denominator:
Weighted average units outstanding - basic	13,327			13,327
Weighted average units outstanding - diluted	14,394			13,327
Income per unit - basic	$	1,008.85		$	382.16
Income per unit - diluted	$	906.28		$	382.16

Recently Issued Accounting Pronouncements

Revenue Recognition

In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606), which supersedes all existing revenue recognition requirements, including most industry-specific guidance. The new standard requires a company to recognize revenue when it transfers goods or services to customers in an amount that reflects the consideration that the company expects to receive for those goods or services. The new standard will be effective for us on October 1, 2018. The Company expects to have enhanced disclosures, but does not expect the new standard to have a material impact on the Company's financial statements.

Leases

In February 2016, FASB issued ASU 2016-02 "Leases” ("ASU 2016-02"). ASU 2016-02 requires the recognition of lease assets and lease liabilities by lessees for all leases greater than one year in duration and classified as operating leases under previous GAAP. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, and for interim periods within that fiscal year. We will not implement ASU 2016-02 until October 2019, when Fiscal 2020 starts. The Company does not expect the new standard to have a material impact on the Company's financial statements.

Interest - Imputation of Interest

In April 2015, the Financial Accounting Standards Board issued ASU 2015-03 that simplifies the presentation of debt issuance costs and requires that debt issuance costs related to a recognized debt liability be presented in the statement of financial position as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. This was adopted for the presentation of 2017 financial documents, and we made reclassifications to the 2016 financial statements to conform with the 2017 presentation. There was no impact on financial position or results of operations.

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Inventory

12 Months Ended

Sep. 30, 2017

Inventory Disclosure [Abstract]

Inventory

Inventory

Inventory is comprised of the following at:

	September 30, 2017		September 30, 2016
	(in 000's)		(in 000's)
Raw Materials - corn	$	4,010	$	2,924
Supplies and Chemicals	4,149		3,293
Work in Process	1,486		1,271
Finished Goods	3,569		2,449
Total	$	13,214	$	9,937

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Members' Equity

12 Months Ended

Sep. 30, 2017

Stockholders' Equity Note [Abstract]

Members' Equity

Members’ Equity

At September 30, 2017 and 2016 outstanding member units were:

	September 30, 2017	September 30, 2016
A Units	8,993	8,993
B Units	3,334	3,334
C Units	1,000	1,000
	13,327	13,327

The Series A, B and C unit holders all vote on certain matters with equal rights.  The Series C unit holders as a group have the right to elect one Board member.  The Series B unit holders as a group have the right to elect the number of Board members which bears the same proportion to the total number of Directors in relation to Series B outstanding units to total outstanding units. Based on this calculation, the Series B unit holders have the right to elect two Board members.  Series A unit holders as a group have the right to elect the four remaining Directors not elected by the Series C and B unit holders.

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Revolving Loan/Credit Agreements

12 Months Ended

Sep. 30, 2017

Debt Disclosure [Abstract]

Revolving Loan/Credit Agreements

Revolving Loan/Credit Agreements

FCSA/CoBank

During Fiscal 2014, the Company entered into a credit agreement with Farm Credit Services of America, FLCA (“FCSA”) and CoBank, ACB, as cash management provider and agent (“CoBank”) which provides the Company with a term loan in the amount of $30,000,000 (the “Term Loan”) and a revolving term loan in the amount of up to $36,000,000 (the “Revolving Term Loan ", and together with the Term Loan, the “FCSA Credit Facility”). The FCSA Credit Facility is secured by a security interest on all of the Company’s assets.

The Term Loan provides for payments by the Company to FCSA of quarterly installments of $1,500,000, which began on December 20, 2014 with a maturity date of September 20, 2019. The Revolving Term Loan has a maturity date of June 1, 2023 and requires annual reductions in principal availability of $6,000,000 commencing on June 1, 2020. Under the FCSA Credit Facility, the Company has the right to select from the several LIBOR based interest rate options with respect to each of the Term Loan and the Revolving Term Loan.

As of September 30, 2017, there was $16.1 million outstanding under the FCSA Credit Facility, with $31.9 million available under the Revolving Term Loan.

Financing costs associated with the Credit Agreement Facility are recorded at cost and include expenditures directly related to securing debt financing.  The Company amortizes financing costs using the effective interest method over the term of the related debt. In 2017, we adopted ASU number 2015-03 to recognize the financing costs as a direct deduction from the carrying amount of the debt liability. The 2016 statements were revised to reflect this reclassification.

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Notes Payable

12 Months Ended

Sep. 30, 2017

Debt Instrument [Line Items]

Notes Payable

Notes Payable

Notes payable consists of the following (in 000's):
	September 30, 2017		September 30, 2016
Term loan bearing interest at LIBOR plus 3.35% (4.59% at September 30, 2017)	$	12,000	$	18,000
Revolving term loan bearing interest at LIBOR plus 3.35% (4.59% at September 30 2017)	4,100		9,361
Other with interest rates from 3.50% to 4.15% and maturities through 2022	3,666		4,183
	19,766		31,544
Less Current Maturities	6,538		6,517
Less Financing Costs, net of amortization	202		273
Total Long Term Debt	13,026		24,754

Approximate aggregate maturities of notes payable as of September 30, 2017 are as follows (in 000's):

2018	$	6,538
2019	6,560
2020	579
2021	589
2022	1,400
2023 and Thereafter	4,100
Total	$	19,766

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Fair Value Measurement

12 Months Ended

Sep. 30, 2017

Fair Value Disclosures [Abstract]

Fair Value Measurement

Fair Value Measurement

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.  In determining fair value, the Company used various methods including market, income and cost approaches.  Based on these approaches, the Company often utilized certain assumptions that market participants would use in pricing the asset or liability, including assumptions about risk and/or the risks inherent in the inputs to the valuation technique.  These inputs can be readily observable, market corroborated, or generally unobservable inputs.  The Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs.  Based on the observable inputs used in the valuation techniques, the Company is required to provide the following information according to the fair value hierarchy.

The fair value hierarchy ranks the quality and reliability of the information used to determine fair values.  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 classifications of such instruments pursuant to the valuation hierarchy, is set below.

Put Option liability. The put option liability consists of an agreement between the Company and ICM that contains a conditional obligation to repurchase feature. In accordance with accounting for put options as a liability, the Company calculated the fair value of the put option under Level 3, using a valuation model called the Monte Carlo Simulation.

Derivative financial statements.  Commodity futures and exchange traded options 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 Chicago Mercantile Exchange (“CME”) market.  Ethanol contracts are reported at fair value utilizing Level 2 inputs from third-party pricing services.  Forward purchase contracts are reported at fair value utilizing Level 2 inputs.   For these contracts, the Company obtains fair value measurements from local grain terminal values.  The fair value measurements consider observable data that may include live trading bids from local elevators and processing plants which are based off the CME market.

The following table summarizes financial instruments measured at fair value on a recurring basis as of September 30, 2017 and 2016, categorized by the level of the valuation inputs within the fair value hierarchy: (dollars in '000s)

	September 30, 2017
	Level 1		Level 2		Level 3
Assets:
Derivative financial instruments	$	190	$	—	$	—
Liabilities:
Derivative financial instruments	100		911		—
Put Option Liability	—		—		5,700
	September 30, 2016
	Level 1		Level 2		Level 3
Assets:
Derivative financial instruments	$	361	$	—	$	—
Liabilities:
Derivative financial instruments	20		1,526		—
Put Option Liability	—		—		6,100

The following table summarizes the assumptions used in computing the fair value of the put option subject to fair value:

	September 30, 2017			September 30, 2016
Expected dividend yield	—			—
Risk-free interest rate	1.34		%	0.63		%
Expected volatility	26		%	32		%
Expected life (years)	1.25			1.25
Exercise price	$	10,897		$	10,897
Company unit price	$	5,670		$	5,200

The following table reflects the activity for liabilities measured at fair value using Level 3 inputs as of September 30, 2017:

	September 30, 2017			September 30, 2016
Beginning Balance	$	6,100		$	5,640
Change in Value	(400		)	460
Ending Balance	$	5,700		$	6,100

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Incentive Compensation

12 Months Ended

Sep. 30, 2017

Employee Benefits and Share-based Compensation, Noncash [Abstract]

Incentive Compensation

Incentive Compensation

The Company has an equity incentive plan which provides that the Board of Directors may make awards of equity appreciation units (“EAU”) and equity participation units (“EPU”) to employees from time to time, subject to vesting provisions as determined for each award. There are no EAUs outstanding. The EPUs are valued in accordance with the agreement which is based on the book value per unit of the Company. The Company had 83.3 unvested EPUs outstanding under this plan as of September 30, 2017, which will vest three years from the dates of the awards.  

During the Fiscal 2017 and 2016, the Company recorded compensation expense related to this plan of approximately $342,000 and $191,000, respectively.  As of September 30, 2017 and 2016, the Company had a liability of approximately $844,000 and $502,000, respectively, recorded within accrued expenses on the balance sheet. The incentive compensation expense to be recognized in future periods at September 30, 2017 and 2016 was $252,000 and $215,000, respectively.

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Related Party Transactions

12 Months Ended

Sep. 30, 2017

Related Party Transaction, Due from (to) Related Party [Abstract]

Related Party Transactions

Related Party Transactions and Major Customers

Related Party Transactions

Bunge

On December 5, 2014, the Company entered into an Amended and Restated Ethanol Purchase Agreement (the “Ethanol Agreement”) with Bunge. Under the Ethanol Agreement, the Company has agreed to sell Bunge all of the ethanol produced by the Company, and Bunge has agreed to purchase the same.  The Company will pay Bunge a percentage marketing fee for ethanol sold by Bunge, subject to a minimum and maximum annual fee.  The initial term of the Ethanol Agreement expires on December 31, 2019, however it will automatically renew for one five-year term unless Bunge provides the Company with notice of election to terminate. The Company has incurred ethanol marketing expenses of $1.5 million in each year for Fiscal 2017 and 2016, under the Ethanol Agreement.

On June 26, 2009, the Company executed a Railcar Agreement with Bunge for the lease of 325 ethanol cars and 300 hopper cars which are used for the delivery and marketing of ethanol and distillers grains. In November 2016, we reduced the number of leased ethanol cars to 323 and in both November 2013 and January 2015 we reduced the number of hopper cars by one for a total of 298 leased hopper cars).  Under the Railcar Agreement, the Company leases railcars for terms lasting 120 months and continuing on a month to month basis thereafter.  The Railcar Agreement will terminate upon the expiration of all railcar leases.  Expenses under this agreement were $4.0 million and $4.4 million for the Fiscal 2017 and 2016, net of subleases and accretion, respectively. In November 2016, the Company entered into a sublease for 96 hoppers with Bunge that is set to expire on March 24, 2019. The Company has subleased another 92 hopper cars to unrelated third parties, which expires March 25, 2019. The Company continues to work with Bunge to determine the need for ethanol and hopper cars in light of current market conditions, and the expected conditions in 2017 and beyond. The Company believes we will be able to fully utilize our fleet of hopper cars in the future, to allow us to cost-effectively ship distillers grains to distant markets, primarily the export markets.                    

On December 5, 2014, the Company and Bunge entered into an Amended and Restated Distiller’s Grain Purchase Agreement (the “ DG Purchase Agreement ”).  Under the DG Purchase Agreement, Bunge will purchase all distiller’s grains produced by the Company, and will receive a marketing fee based on the net sale price of distillers grains, subject to a minimum and maximum annual fee.  The initial term of the DG Purchase Agreement expires on December 31, 2019  and will automatically renew for one additional five year term unless Bunge provides notice of election to the Company to terminate. The Company has incurred distillers grains marketing expenses of $1.1 million and $1.3 million during Fiscal 2017 and 2016, respectively.

The Company and Bunge also entered into an Amended and Restated Grain Feedstock Agency Agreement on December 5, 2014 (the “ Agency Agreement ”).  The Agency Agreement provides that Bunge will procure corn for the Company, the Company will pay Bunge a per bushel fee, subject to a minimum and maximum annual fee.  The initial term of the Agency Agreement expires on December 31, 2019 and will automatically renew for one additional five year term unless Bunge provides notice of election to the Company to terminate. Expenses for corn procurement by Bunge were $0.7 million for each year of the fiscal years ended September 30, 2017 and 2016. The Company has outstanding corn contracts of 181 thousand bushels with a $620 thousand liability as of September 30, 2017, and 258 thousand bushels with a $900 thousand liability as of September 30, 2016 included in derivative financial instruments liability on the balance sheet.

Starting with the 2015 crop year, the Company is using corn containing Syngenta Seeds, Inc.’s proprietary Enogen® technology (“ Enogen Corn ”) for a portion of its ethanol production needs.  The Company contracts directly with growers to produce Enogen Corn for sale to the Company.  The Company has contracted for 28,900 acres of Enogen corn for Fiscal 2018. Concurrent with the Agency Agreement, the Company and Bunge entered into a Services Agreement regarding corn purchases (the “ Services Agreement ”).  Under this agreement, the Company originates all Enogen Corn contracts for its facility and Bunge assists the Company with certain administrative matters related to Enogen Corn, including facilitating delivery to the facility.  The Company pays Bunge a per bushel service fee.  The initial term of the Services Agreement expires on December 31, 2019 and will automatically renew for one additional five year term unless Bunge provides notice of election to the Company to terminate. Expenses under the Services Agreement are included as part of the Amended and Restated Grain Feedstock Agency Agreement discussed above.

ICM

In connection with the payoff of the ICM subordinated debt, the Company entered into the SIRE ICM Unit Agreement dated December 17, 2014 (the “ Unit Agreement ”).  Under the Unit Agreement, the Company granted ICM the right to sell to the Company its 1,000 Series C and 18 Series A Membership Units (the “ ICM Units ”) commencing anytime during the earliest of  several alternative dates and events at the greater of $10,897 per unit or the fair market value (as defined in the agreement) on the date of exercise. The Company recorded a liability of $5.6 million (included in long-term liabilities) in 2015, and recorded an additional expense of $460 thousand in Fiscal 2016, and in Fiscal 2017 reduced expense by $400 thousand in conjunction with this put right under the Unit Agreement (the "Loss from debt extinguishment" and the "Change in fair value of put option liability" ). See Note 7 Fair Value Measurement, for the terms of this agreement.

Major Customers

The Company is party to the Ethanol Agreement and the Distillers Grain Purchase Agreement with Bunge for the exclusive marketing, selling, and distributing of all of the ethanol and distillers grains produced by the Company.  The Company has expensed $2.6 million and $2.8 million in marketing fees under these agreements for Fiscal 2017 and 2016, respectively. Revenues with this customer were $208.8 million and $214.5 million, respectively, for Fiscal 2017 and 2016.   Trade accounts receivable due from Bunge were $11.5 million and $13.1 million as of September 30, 2017 and 2016, respectively.

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Commitments (Notes)

12 Months Ended

Sep. 30, 2017

Commitments Disclosure [Text Block]

Commitments

The Company has entered into a steam contract with an unrelated party under which the vendor agreed to provide the steam required by the Company, up to 475,000 pounds per hour. The Company agreed to pay a net energy rate for all steam provided under the contract as well as a monthly demand charge. The net energy rate is set for the first three years then adjusted each year beginning on the third anniversary date.  The steam contract was renewed effective January 1, 2013, and will remain in effect until November 30, 2024.  Expenses under this agreement for the years ended September 30, 2017 and 2016 were $5.1 million and $3.7 million, respectively.

The Company leases certain equipment, railcars, vehicles, and operating facilities under non-cancellable operating leases that expire on various dates through 2019.  The future minimum lease payments required under these leases (net of sublease income) are  $4.6 million in 2018, and $2.1 million in 2019.  Rent expense (net of sublease income) related to operating leases for the years ended September 30, 2017 and 2016 was $4.6 million and $4.7 million, respectively. Non Related party sublease totals were $0.7 million in each year for 2017 and 2016.  The majority of the future minimum lease payments are due to Bunge. Future sublease income is due from unrelated third parties.

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Summary Of Significant Accounting Policies (Policy)

12 Months Ended

Sep. 30, 2017

Accounting Policies [Abstract]

New Accounting Pronouncements, Policy [Policy Text Block]

Recently Issued Accounting Pronouncements

Revenue Recognition

In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606), which supersedes all existing revenue recognition requirements, including most industry-specific guidance. The new standard requires a company to recognize revenue when it transfers goods or services to customers in an amount that reflects the consideration that the company expects to receive for those goods or services. The new standard will be effective for us on October 1, 2018. The Company expects to have enhanced disclosures, but does not expect the new standard to have a material impact on the Company's financial statements.

Leases

In February 2016, FASB issued ASU 2016-02 "Leases” ("ASU 2016-02"). ASU 2016-02 requires the recognition of lease assets and lease liabilities by lessees for all leases greater than one year in duration and classified as operating leases under previous GAAP. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, and for interim periods within that fiscal year. We will not implement ASU 2016-02 until October 2019, when Fiscal 2020 starts. The Company does not expect the new standard to have a material impact on the Company's financial statements.

Interest - Imputation of Interest

In April 2015, the Financial Accounting Standards Board issued ASU 2015-03 that simplifies the presentation of debt issuance costs and requires that debt issuance costs related to a recognized debt liability be presented in the statement of financial position as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. This was adopted for the presentation of 2017 financial documents, and we made reclassifications to the 2016 financial statements to conform with the 2017 presentation. There was no impact on financial position or results of operations.

Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]

Basic earnings and diluted per unit data were computed as follows (in thousands except per unit data):

	Twelve Months Ended
	September 30, 2017			September 30, 2016
Numerator:
Net income for basic earnings per unit	$	13,445		$	5,093
Change in fair value of put option liability	$	(400	)	$	—
Net income for diluted earnings per unit	$	13,045		$	5,093
Denominator:
Weighted average units outstanding - basic	13,327			13,327
Weighted average units outstanding - diluted	14,394			13,327
Income per unit - basic	$	1,008.85		$	382.16
Income per unit - diluted	$	906.28		$	382.16

Use Of Estimates

Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period.  Actual results could differ from these estimates.

Cash & Cash Equivalents

Cash and Cash Equivalents

The Company considers all highly liquid investments purchased with a maturity of three months or less when purchased to be cash equivalents.

Concentration Of Credit Risk

Concentration of Credit Risk

The Company’s cash balances are maintained in bank deposit accounts which at times may exceed federally-insured limits.  The Company has not experienced any losses in such accounts.

Revenue Recognition

Revenue Recognition

The Company sells ethanol and related products pursuant to marketing agreements.  Revenues are recognized when the marketing company has taken title to the product, prices are fixed or determinable and collectability is reasonably assured. 

The Company’s products are generally shipped FOB loading point, and recorded as a sale upon delivery of the applicable bill of lading.  The Company’s ethanol sales are handled through an ethanol purchase agreement (the “Ethanol Agreement”) with Bunge North America, Inc. (“Bunge”).  Syrup and distillers grains (co-products) are sold through a distillers grains agreement (the “DG Agreement”) with Bunge, based on market prices. The Company markets and distributes all of the corn oil it produces directly to end users at market prices.   Carbon dioxide is sold through a Carbon Dioxide Purchase and Sale Agreement (the “CO2 Agreement”) with Air Products and Chemicals, Inc., formerly known as EPCO Carbon Dioxide Products, Inc. ("Air Products”). Marketing fees, agency fees, and commissions due to the marketer are calculated separately from the settlement for the sale of the ethanol products and co-products and are included as a component of cost of goods sold.  Shipping and handling costs incurred by the Company for the sale of ethanol and co-products are included in cost of goods sold.

Accounts Receivable

Accounts Receivable

Accounts receivable are recorded at original invoice amounts less an estimate made for doubtful receivables based on a review of all outstanding amounts on a monthly basis.  Management determines the allowance for doubtful accounts by regularly evaluating individual customer receivables and considering customers’ financial condition, credit history and current economic conditions.  As of September 30, 2017 and 2016, management had determined no allowance is necessary.  Receivables are written off when deemed uncollectable and recoveries of receivables written off are recorded when received.

Concentration Risk Disclosure [Text Block]

Risks and Uncertainties

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

Investment In Commodities Contracts, Derivative Instruments And Hedging Activities

Investment in Commodities Contracts, Derivative Instruments and Hedging Activities

The Company’s operations and cash flows are subject to fluctuations due to changes in commodity prices.  The Company is subject to market risk with respect to the price and availability of corn, the principal raw material used to produce ethanol and ethanol by-products.  Exposure to commodity price risk results from its dependence on corn in the ethanol production process.  In general, rising corn prices result in lower profit margins and, therefore, represent unfavorable market conditions.  This is especially true when market conditions do not allow the Company to pass along increased corn costs to customers.  The availability and price of corn is subject to wide fluctuations due to unpredictable factors such as weather conditions, farmer planting decisions, governmental policies with respect to agriculture and international trade and global demand and supply.

To minimize the risk and the volatility of commodity prices, primarily related to corn and ethanol, the Company uses various derivative instruments, including forward corn, ethanol and distillers grains purchase and sales contracts, over-the-counter and exchange-trade futures and option contracts.  When the Company has sufficient working capital available, it enters into derivative contracts to hedge its exposure to price risk related to forecasted corn needs and forward corn purchase contracts.  

Management has evaluated the Company’s 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.   Gains and losses on contracts that are designated as normal purchases or normal sales contracts are not recognized until quantities are delivered or utilized in production.

The Company applies the normal sale exemption to forward contracts relating to ethanol, distillers grains, and corn oil and therefore these forward contracts are not marked to market. As of September 30, 2017, the Company was committed to sell 7.0 million gallons of ethanol, 84.7 thousand tons of dried distillers grains, 92.3 thousand tons of wet distillers grains and 3.7 million pounds of corn oil.

Corn purchase contracts are treated as derivative financial instruments.  Changes in fair value of forward corn contracts, which are marked to market each period, are included in costs of goods sold.  As of September 30, 2017, the Company was committed to purchasing 2.9 million bushels of corn on a forward contract basis resulting in a total commitment of $10.3 million.  In addition the Company was committed to purchasing 691.1 thousand bushels of corn using basis contracts.

In addition, the Company enters into short-term cash, options and futures contracts as a means of managing exposure to changes in commodity prices.  The Company enters into derivative contracts to hedge the exposure to volatile commodity price fluctuations.  The Company maintains a risk management strategy that uses derivative instruments to minimize significant, unanticipated earnings fluctuations caused by market volatility.  The Company’s specific goal is to protect itself from large moves in commodity costs.  All derivatives are designated as non-hedge derivatives and the contracts will be accounted for at fair value.  Although the contracts are considered effective economic hedges of specified risks, they are not designated as or accounted for as hedging instruments.

Derivatives not designated as hedging instruments along with cash due to brokers at September 30, 2017 and 2016 are as follows:

	Balance Sheet Classification	September 30, 2017			September 30, 2016
		in 000's			in 000's
Futures and option contracts
In gain position		$	190		$	361
In loss position		(100		)	(20		)
Cash (due to) broker		(67		)	(253		)
	Current asset	23			88
Forward contracts, corn	Current liability	911			1,526
Net futures, options, and forward contracts		$	(888	)	$	(1,438	)

The net realized and unrealized gains and losses on the Company’s derivative contracts for the years ended September 30, 2017 and 2016 consist of the following:

	Statement of Operations Classification	September 30, 2017			September 30, 2016
Net realized and unrealized (gains) losses related to:		(in 000's)			(in 000's)
Forward purchase contracts (corn)	Cost of Goods Sold	$	1,590		$	6,468
Futures and option contracts (corn)	Cost of Goods Sold	(1,980		)	(6,008		)
Futures and option contracts (ethanol)	Revenue	—			429

Inventory

Inventory

Inventory is stated at the lower of average cost or net realizable value. In the valuation of inventories and purchase commitments, net realizable value is defined as estimated selling price in the ordinary course of business less reasonable predictable costs of completion, disposal and transportation.

Property And Equipment

Property and Equipment

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

Buildings	40 Years
Process Equipment	10 - 20 Years
Office Equipment	3-7 Years

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 group may not be recoverable.   An impairment loss would be recognized when estimated undiscounted future cash flows from 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. Management has determined there were no events or changes in circumstances that required an impairment evaluation during Fiscal 2017 or Fiscal 2016.

Income Taxes

Income Taxes

The Company has elected to be treated as a partnership for federal and state income tax purposes and generally does not incur income taxes.  Instead, the Company’s earnings and losses are included in the income tax returns of the members.  Therefore, no provision or liability for federal or state income taxes has been included in these financial statements.

Management has evaluated the Company’s tax positions under the Financial Accounting Standards Board issued guidance on accounting for uncertainty in income taxes and concluded that the Company has taken no uncertain tax positions that require adjustment to the financial statements to comply with the provisions of this guidance.  

Net (Loss) Per Unit

Income Per Unit

Basic income per unit is calculated by dividing net income by the weighted average units outstanding for each period. Diluted income per unit is adjusted for convertible debt, using the treasury stock method and the put option using the reverse treasury stock method. In Fiscal 2016, the put option did not impact diluted income per unit as it was anti-dilutive. Basic earnings and diluted per unit data were computed as follows (in thousands except per unit data):

	Twelve Months Ended
	September 30, 2017			September 30, 2016
Numerator:
Net income for basic earnings per unit	$	13,445		$	5,093
Change in fair value of put option liability	$	(400	)	$	—
Net income for diluted earnings per unit	$	13,045		$	5,093
Denominator:
Weighted average units outstanding - basic	13,327			13,327
Weighted average units outstanding - diluted	14,394			13,327
Income per unit - basic	$	1,008.85		$	382.16
Income per unit - diluted	$	906.28		$	382.16

Fair Value Of Financial Instruments

Fair value of financial instruments

The carrying amounts of cash and cash equivalents, derivative financial instruments, accounts receivable, accounts payable and accrued expenses approximate fair value due to the short term nature of these instruments.

The put option liability consists of an agreement between the Company and ICM that contains a conditional obligation to repurchase feature. In accordance with accounting for put options as a liability, the Company calculated the fair value of the put option under Level 3, using a valuation model called the Monte Carlo Simulation. Using this model, the estimated value at September 30, 2017 and 2016 was 5.7 million and $6.1 million, respectively.

The carrying amount of the notes payable approximates fair value, as the interest rate is a floating rate. The terms are consistent with those available in the market as of September 30, 2017 and 2016, using level 3 inputs.

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Summary Of Significant Accounting Policies (Tables)

12 Months Ended

Sep. 30, 2017

Schedule Of Derivatives Not Designated As Hedging Instruments

Derivatives not designated as hedging instruments along with cash due to brokers at September 30, 2017 and 2016 are as follows:

	Balance Sheet Classification	September 30, 2017			September 30, 2016
		in 000's			in 000's
Futures and option contracts
In gain position		$	190		$	361
In loss position		(100		)	(20		)
Cash (due to) broker		(67		)	(253		)
	Current asset	23			88
Forward contracts, corn	Current liability	911			1,526
Net futures, options, and forward contracts		$	(888	)	$	(1,438	)

Schedule Of Net Realized And Unrealized Gains And Losses On Derivative Contracts

The net realized and unrealized gains and losses on the Company’s derivative contracts for the years ended September 30, 2017 and 2016 consist of the following:

	Statement of Operations Classification	September 30, 2017			September 30, 2016
Net realized and unrealized (gains) losses related to:		(in 000's)			(in 000's)
Forward purchase contracts (corn)	Cost of Goods Sold	$	1,590		$	6,468
Futures and option contracts (corn)	Cost of Goods Sold	(1,980		)	(6,008		)
Futures and option contracts (ethanol)	Revenue	—			429

Schedule Of Property And Equipment

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

Buildings	40 Years
Process Equipment	10 - 20 Years
Office Equipment	3-7 Years

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Inventory (Tables)

12 Months Ended

Sep. 30, 2017

Inventory Disclosure [Abstract]

Components Of Inventory

	September 30, 2017		September 30, 2016
	(in 000's)		(in 000's)
Raw Materials - corn	$	4,010	$	2,924
Supplies and Chemicals	4,149		3,293
Work in Process	1,486		1,271
Finished Goods	3,569		2,449
Total	$	13,214	$	9,937

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Members' Equity Members" Equity (Tables)

12 Months Ended

Sep. 30, 2017

Equity [Abstract]

Schedule of Stockholders Equity [Table Text Block]

At September 30, 2017 and 2016 outstanding member units were:

	September 30, 2017	September 30, 2016
A Units	8,993	8,993
B Units	3,334	3,334
C Units	1,000	1,000
	13,327	13,327

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Notes Payable (Tables)

12 Months Ended

Sep. 30, 2017

Notes Payable [Abstract]

Components Of Notes Payable

Notes payable consists of the following (in 000's):
	September 30, 2017		September 30, 2016
Term loan bearing interest at LIBOR plus 3.35% (4.59% at September 30, 2017)	$	12,000	$	18,000
Revolving term loan bearing interest at LIBOR plus 3.35% (4.59% at September 30 2017)	4,100		9,361
Other with interest rates from 3.50% to 4.15% and maturities through 2022	3,666		4,183
	19,766		31,544
Less Current Maturities	6,538		6,517
Less Financing Costs, net of amortization	202		273
Total Long Term Debt	13,026		24,754

Aggregate Maturities Of Notes Payable

Approximate aggregate maturities of notes payable as of September 30, 2017 are as follows (in 000's):

2018	$	6,538
2019	6,560
2020	579
2021	589
2022	1,400
2023 and Thereafter	4,100
Total	$	19,766

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Fair Value Measurement (Tables)

12 Months Ended

Sep. 30, 2017

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Table Text Block]

The following table summarizes the assumptions used in computing the fair value of the put option subject to fair value:

	September 30, 2017			September 30, 2016
Expected dividend yield	—			—
Risk-free interest rate	1.34		%	0.63		%
Expected volatility	26		%	32		%
Expected life (years)	1.25			1.25
Exercise price	$	10,897		$	10,897
Company unit price	$	5,670		$	5,200

Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block]

The following table reflects the activity for liabilities measured at fair value using Level 3 inputs as of September 30, 2017:

	September 30, 2017			September 30, 2016
Beginning Balance	$	6,100		$	5,640
Change in Value	(400		)	460
Ending Balance	$	5,700		$	6,100

Financial Assets And Liabilities Measured At Fair Value On A Recurring Basis

The following table summarizes financial instruments measured at fair value on a recurring basis as of September 30, 2017 and 2016, categorized by the level of the valuation inputs within the fair value hierarchy: (dollars in '000s)

	September 30, 2017
	Level 1		Level 2		Level 3
Assets:
Derivative financial instruments	$	190	$	—	$	—
Liabilities:
Derivative financial instruments	100		911		—
Put Option Liability	—		—		5,700
	September 30, 2016
	Level 1		Level 2		Level 3
Assets:
Derivative financial instruments	$	361	$	—	$	—
Liabilities:
Derivative financial instruments	20		1,526		—
Put Option Liability	—		—		6,100

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Nature Of Business (Details) gal in Millions, $ in Millions	12 Months Ended
	Sep. 30, 2017 USD ($) gal	Sep. 30, 2016 gal
Nature Of Business [Abstract]
Production capacity, Number of Gallons | $	$ 140
Production, Number Of Gallons | gal	123.7	124.5

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Summary Of Significant Accounting Policies (Narrative) (Details) $ / shares in Units, lb in Millions, gal in Millions	12 Months Ended
	Sep. 30, 2017 USD ($) T lb $ / shares shares gal	Sep. 30, 2016 USD ($) $ / shares shares bu	Sep. 30, 2015 USD ($)
Schedule of Available-for-sale Securities [Line Items]
change in fair value of put option, anti-dilutive	$ (400,000)	$ 0
Net Income (Loss) Attributable to Parent	13,445,000	5,093,000
Net Income (Loss) Available to Common Stockholders, Basic	13,445,000	5,093,000
Net Income (Loss) Available to Common Stockholders, Diluted	$ 13,045,000	$ 5,093,000
Weighted Average Number of Shares Outstanding, Basic | shares	13,327	13,327
Weighted Average Number of Shares Outstanding, Diluted | shares	14,394	13,327
Earnings Per Share, Basic | $ / shares	$ 1,008.85	$ 382.16
Derivative Assets	$ 23,000	$ 88,000
Sale of ethanol (in gallons) | gal	7.0
Sale of dried distillers grains and solubles (in tons) | T	84,700
Sale of wet distillers grains and solubles (in tons) | T	92,300
Total Commitment to Sale of Corn Oil (pounds) | lb	3.7
Total purchase commitment of corn (in bushels) | bu		2,900,000
Total purchase commitment		$ 10,300,000
Gain (Loss) on Derivative Instruments Held for Trading Purposes, Net	$ (390,000)	$ 460,000
Total purchase commitment of corn basis contracts, bushels | bu		691,100
Earnings Per Share, Diluted | $ / shares	$ 906.28	$ 382.16
Allowance for Doubtful Accounts Receivable	$ 0	$ 0
Forward Contracts [Member]
Schedule of Available-for-sale Securities [Line Items]
Gain (Loss) on Derivative Instruments Held for Trading Purposes, Net	(1,590,000)	(6,468,000)
Fair Value, Inputs, Level 3 [Member]
Schedule of Available-for-sale Securities [Line Items]
Warrants and Rights Outstanding	5,700,000	6,100,000	$ 5,640,000
Derivative Liability	0	0
Derivative Assets	$ 0	$ 0

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Summary Of Significant Accounting Policies (Schedule Of Derivatives Not Designated As Hedging Instruments) (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Summary Of Significant Accounting Policies [Line Items]
Gain (Loss) on Derivative Instruments Held for Trading Purposes, Net	$ 390	$ (460)
Derivative Assets	23	88
Derivative, Fair Value, Net	(888)	(1,438)
Futures And Option Contracts In Gain Position [Member]
Summary Of Significant Accounting Policies [Line Items]
Derivative Assets		361
Futures And Option Contracts In Loss Position [Member]
Summary Of Significant Accounting Policies [Line Items]
Derivative Assets	(100)	(20)
Futures And Option Contracts Cash Held By Due To Broker [Member]
Summary Of Significant Accounting Policies [Line Items]
Derivative Assets	(67)	(253)
Forward Contracts [Member]
Summary Of Significant Accounting Policies [Line Items]
Gain (Loss) on Derivative Instruments Held for Trading Purposes, Net	1,590	6,468
ethanol [Member] | Future And Option Contracts [Member]
Summary Of Significant Accounting Policies [Line Items]
Gain (Loss) on Derivative Instruments Held for Trading Purposes, Net	0	429
corn [Member] | Future And Option Contracts [Member]
Summary Of Significant Accounting Policies [Line Items]
Gain (Loss) on Derivative Instruments Held for Trading Purposes, Net	(1,980)	(6,008)
Fair Value, Inputs, Level 2 [Member]
Summary Of Significant Accounting Policies [Line Items]
Derivative Assets	$ 0	$ 0

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Summary Of Significant Accounting Policies (Schedule Of Net Realized And Unrealized Gains And Losses On Derivative Contracts) (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Summary Of Significant Accounting Policies [Line Items]
Net realized and unrealized (gains) losses	$ 390	$ (460)
Forward Contracts [Member]
Summary Of Significant Accounting Policies [Line Items]
Net realized and unrealized (gains) losses	$ 1,590	$ 6,468

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Summary Of Significant Accounting Policies (Schedule Of Property And Equipment) (Details) - USD ($)	12 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Property, Plant and Equipment [Line Items]
Allowance for Doubtful Accounts Receivable	$ 0	$ 0
Office Equipment - Maximum [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Useful Life	7 years
Office Equipment - Minimum [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Useful Life	3 years
Process Equipment - Maximum [Member] [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Useful Life	20 years
Process Equipment - Minimum [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Useful Life	10 years
Building [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Useful Life	40 years

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Inventory (Components Of Inventory) (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Sep. 30, 2016
Inventory Disclosure [Abstract]
Raw Materials - corn	$ 4,010	$ 2,924
Supplies and Chemicals	4,149	3,293
Work in Process	1,486	1,271
Finished Goods	3,569	2,449
Total	$ 13,214	$ 9,937

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Members' Equity (Narrative) (Details) - shares	Sep. 30, 2017	Sep. 30, 2016
Capital Unit [Line Items]
Capital Units, Outstanding	13,327	13,327
Capital Unit, Class A [Member]
Capital Unit [Line Items]
Capital Units, Outstanding	8,993	8,993
Capital Unit, Class B [Member]
Capital Unit [Line Items]
Capital Units, Outstanding	3,334	3,334
Capital Unit Class C [Member]
Capital Unit [Line Items]
Capital Units, Outstanding	1,000	1,000

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Revolving Loan/Credit Agreements (AgStar and Bunge) (Narrative) (Details) - USD ($)	12 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Debt Instrument [Line Items]
Long-term Debt	$ 19,766,000	$ 31,544,000
CoBank [Member] | Term Loan [Member]
Debt Instrument [Line Items]
Variable interest rate	3.35%
Amount outstanding	$ 12,000,000	18,000,000
CoBank [Member] | Term Revolver [Member]
Debt Instrument [Line Items]
Variable interest rate	3.35%
Amount outstanding	$ 4,100,000	$ 9,361,000
CoBank [Member] | Term Loan [Member]
Debt Instrument [Line Items]
Quarterly installment	1,500,000
Amount outstanding	16,100,000
Long-term Debt	30,000,000
CoBank [Member] | Term Revolver [Member]
Debt Instrument [Line Items]
Debt Instrument, Periodic Principal Reduction	6,000,000
Long-term Debt	36,000,000
Revolving Working Capital facility 1, Face Amount	$ 31,900,000

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Notes Payable (Components Of Notes Payable) (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Notes Payable [Line Items]
Total	$ 19,766	$ 31,544
Less current maturities	(6,538)	(6,517)
Accumulated Amortization, Debt Issuance Costs, Noncurrent	202	273
Long-term Debt, Excluding Current Maturities	13,026	24,754
CoBank [Member] | Term Loan [Member]
Notes Payable [Line Items]
Line of Credit Facility, Amount Outstanding	$ 12,000	18,000
Bearing interest rate	3.35%
Debt Instrument, Interest Rate During Period	4.59%
Debt Instrument, Description of Variable Rate Basis	LIBOR plus 3.35%
CoBank [Member] | Term Revolver [Member]
Notes Payable [Line Items]
Line of Credit Facility, Amount Outstanding	$ 4,100	9,361
Bearing interest rate	3.35%
Debt Instrument, Interest Rate During Period	4.59%
Debt Instrument, Description of Variable Rate Basis	LIBOR plus 3.35%
Note Payable - IDED [Member]
Notes Payable [Line Items]
Line of Credit Facility, Amount Outstanding	$ 3,666	$ 4,183
Minimum [Member] | Other debt [Member]
Notes Payable [Line Items]
Debt Instrument, Interest Rate During Period	3.50%
Maximum [Member] | Other debt [Member]
Notes Payable [Line Items]
Debt Instrument, Interest Rate During Period	4.15%

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Notes Payable (Aggregate Maturities Of Notes Payable) (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Sep. 30, 2016
Debt Instrument [Line Items]
Long-term Debt, Current Maturities	$ 6,538	$ 6,517
Long-term Debt, Maturities, Repayments of Principal in Year Five	1,400
Long-term Debt, Maturities, Repayments of Principal after Year Five	4,100
2015	579
2014	6,560
2016	589
Total	$ 19,766	$ 31,544

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Fair Value Measurement (Financial Assets And Liabilities Measured At Fair Value On A Recurring Basis) (Details)	12 Months Ended
	Sep. 30, 2017 USD ($) $ / shares	Sep. 30, 2016 USD ($) $ / shares	Sep. 30, 2015 USD ($)
Derivative [Line Items]
Warrant Option, Expected Dividend Yield	0.00%	0.00%
Assets: Derivative financial instruments	$ 23,000	$ 88,000
Warrant Option, Risk-free interest	1.34%	0.63%
Warrant Option, Expected Volatility	26.00%	32.00%
Warrant Option, Expected Life	1.25	1.25
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ / shares	$ 10,897	$ 10,897
Share Price | $ / shares	$ 5,670	$ 5,200
Increase (Decrease) in Put Options	$ (400,000)	$ 460,000
Level 1 [Member]
Derivative [Line Items]
Assets: Derivative financial instruments	190,000
Liabilities: Derivative financial instruments	100,000	20,000
Warrants and Rights Outstanding	0	0
Level 2 [Member]
Derivative [Line Items]
Assets: Derivative financial instruments	0	0
Liabilities: Derivative financial instruments	911,008	1,526,380
Warrants and Rights Outstanding	0	0
Level 3 [Member]
Derivative [Line Items]
Assets: Derivative financial instruments	0	0
Liabilities: Derivative financial instruments	0	0
Warrants and Rights Outstanding	$ 5,700,000	6,100,000	$ 5,640,000
Futures And Option Contracts In Gain Position [Member]
Derivative [Line Items]
Assets: Derivative financial instruments		361,000
Futures And Option Contracts In Gain Position [Member] | Level 1 [Member]
Derivative [Line Items]
Assets: Derivative financial instruments		$ 361,000

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Incentive Compensation (Details) - USD ($)	12 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Employee Benefits and Share-based Compensation, Noncash [Abstract]
Shared-based compensation, future expenses	$ 252,000	$ 215,000
Unvested EPUs outstanding	83.3
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period	3 years
Compensation expense	$ 342,000	191,000
Deferred compensation	$ 844,000	$ 502,000

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Related Party Transactions (Bunge) (Narrative) (Details) bu in Thousands		3 Months Ended		12 Months Ended
	Jun. 26, 2009	Mar. 31, 2015	Dec. 31, 2013	Sep. 30, 2017 USD ($) a bu	Sep. 30, 2016 USD ($) bu
Related Party Transaction [Line Items]
Lease payment for grain elevator, per month				$ 4,600,000	$ 4,700,000
Revenues				219,768,000	223,326,000
Accounts Receivable, Related Parties, Current				11,469,000	13,137,000
Unrelated Party [Member]
Related Party Transaction [Line Items]
Lease payment for grain elevator, per month				700,000	700,000
Ethanol Agreement [Member] | Bunge [Member]
Related Party Transaction [Line Items]
Investment from related parties				$ 1,500,000	1,535,138
Renewal period				5 years
Railcar Agreement [Member] | Bunge [Member]
Related Party Transaction [Line Items]
Agreement period				120 months
Related Party Transaction, Expenses from Transactions with Related Party				$ 4,000,000	4,400,000
Railcar Agreement [Member] | Ethanol Cars [Member] | Bunge [Member]
Related Party Transaction [Line Items]
Number Of Railcars	325			323
Railcar Agreement [Member] | Hopper Cars [Member] | Bunge [Member]
Related Party Transaction [Line Items]
Sublease, hopper car, units				96
Number Of Railcars	300			298
Railcar lease reduction		1	1
Railcar Agreement [Member] | Hopper Cars [Member] | Unrelated Party [Member]
Related Party Transaction [Line Items]
Sublease, hopper car, units				92
Distillers Grain Purchase Agreement [Member] | Bunge [Member]
Related Party Transaction [Line Items]
Renewal period				5 years
Marketing Expense				$ 1,100,000	1,300,000
Grain Feedstock Agency Agreement [Member] | Bunge [Member]
Related Party Transaction [Line Items]
Investment from related parties				$ 700,000	$ 682,618
Derivative Contracts, Corn, Bushels | bu				181	258
Derivative Contracts, Corn, Dollars				$ 620,000	$ 900,000
Renewal period				5 years
Services Agreement [Member] | Bunge [Member]
Related Party Transaction [Line Items]
Contracted Acres, Enogen | a				28,900
Renewal period				5 years
Ethanol Agreement [Member]
Related Party Transaction [Line Items]
Marketing Expense				$ 2,600,000	2,800,000
Revenues				$ 208,800,000	$ 214,500,000

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Related Party Transactions (ICM) (Narrative) (Details) - ICM [Member] - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Unit Agreement [Member]
Related Party Transaction [Line Items]
Fair Value, Option, Credit Risk, Gains (Losses) on Liabilities	$ 5,600
Selling Rights, Greater of Minimum Unit Price or Fair Market Value	$ 10,897
Related Party Transaction, Expenses from Transactions with Related Party	$ 400	$ 460
Capital Unit Class C [Member]
Related Party Transaction [Line Items]
Selling Rights, Units	1,000
Capital Unit, Class A [Member]
Related Party Transaction [Line Items]
Selling Rights, Units	18

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Commitments (Details) $ in Millions	12 Months Ended
	Sep. 30, 2017 USD ($) lb / h	Sep. 30, 2016 USD ($)
Purchase Of Steam Under Steam Contract | lb / h	475,000
Expenses Related To Steam Contract	$ 5.1	$ 3.7
Operating Leases, Future Minimum Payments Due, Next Twelve Months	4.6
Operating Leases, Future Minimum Payments, Due in Two Years	2.1
Operating Leases, Rent Expense, Net	4.6	4.7
Unrelated Party [Member]
Operating Leases, Rent Expense, Net	$ 0.7	$ 0.7