Note 5 - Commitments and Contingencies

9 Months Ended

Sep. 30, 2012

Commitments and Contingencies Disclosure [Text Block]

Note 5.  Commitments and Contingencies.

Commitments

The Company has grain supply agreements to purchase its corn requirements for each of its Indiana Distillery and Atchison facility through a single elevator company.  These grain supply agreements expire December 31, 2014 and thereafter will automatically renew each year on March 31.  At September 30, 2012, the Company had commitments to purchase corn through September 30, 2013 totaling $48,256.

The Company has commitments to purchase natural gas needed in the production process at fixed prices at various dates through April 2013.  The commitment for these contracts at September 30, 2012 totaled approximately $3,545.

The Company has entered into a supply contract for flour for use in the production of protein and starch ingredients.  The initial term of the agreement, as amended, expires October 23, 2015.  At September 30, 2012, the Company had purchase commitments aggregating approximately $5,901 through December 31, 2012.

At September 30, 2012, the Company had $2,500 outstanding from letters of credit.

Contingencies

There are various legal proceedings involving the Company and its subsidiaries that are ordinary and routine in nature for an entity in the Company’s business.  Management considers that the aggregate liabilities, if any, arising from such actions would not have a material adverse effect on the consolidated financial position or overall results of operations of the Company.