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Commitments, Contingencies and Concentrations
 12 Months Ended
Oct. 31, 2021
Commitments and Contingencies Disclosure [Abstract]  
Commitments, Contingencies and Concentrations COMMITMENTS, CONTINGENCIES AND CONCENTRATIONS
Marketing Agreements

The Company has an ethanol marketing agreement with a marketer (RPMG) to purchase, market, and distribute the ethanol produced by the Company. The Company also entered into a member control agreement with the marketer whereby the Company made capital contributions and became a minority owner of the marketer. The member control agreement became effective on February 1, 2011 and provides the Company a membership interest with voting rights. The marketing agreement will terminate if the Company ceases to be a member. The Company will assume certain of the member’s rail car leases if the agreement is terminated. The Company can sell its ethanol either through an index arrangement or at an agreed upon fixed price. The marketing agreement is perpetual until terminated according to the agreement.  The Company may be obligated to continue to market its ethanol through the marketer for a period of time. The amended agreement requires minimum capital amounts invested as required under the agreement. Revenue recognized under this agreement for the years ended October 31, 2021, 2020 and 2019 was $123,344,552, $69,682,187, $75,781,721 respectively. Accounts receivable under the agreement as of October 31, 2021 and 2020 were $6,353,103 and $2,677,213 respectively.

The Company has a distillers grains marketing agreement with a marketer to market all the dried distillers grains produced at the plant. Under the agreement the marketer charges a maximum of $2.00 per ton and a minimum of $1.50 per ton price using 2% of the FOB plant price actually received by them for all dried distillers grains removed. The agreement will remain in effect unless otherwise terminated by either party with 120 days notice. Under the agreement, the marketer is responsible for all transportation arrangements for the distribution of the dried distillers grains. The Company markets and sells its modified distillers grains. Revenue recognized under this agreement for the years ended October 31, 2021, 2020 and 2019 was $21,108,135 and $14,123,366, $14,700,718 respectively. Accounts receivable under the agreement as of October 31, 2021 and 2019 were $520,821 and $474,991 respectively.

The Company has a crude corn oil marketing agreement with a marketer (RPMG) to market all corn oil to be produced at the plant for an initial term. Under the agreement, the Company must provide estimates of production and inventory of corn oil. The marketer may execute sales contracts with buyers for future delivery of corn oil. The Company receives a percentage of the F.O.B. sale price less a marketing fee, actual freight and transportation costs and certain taxes and other charges related to the purchase, delivery or sale. The Company is required to provide corn oil meeting certain specifications as provided in the agreement and the agreement provides for a process for rejection of nonconforming corn oil. The agreement automatically renews for successive terms unless terminated in accordance with the agreement. Revenue recognized under this agreement for the years ended October 31, 2021 and 2020 was $9,867,789 and $3,836,751 respectively. Accounts receivable under the agreement as of October 31, 2021 and 2020 were $317,966 and $112,028 respectively.

Regulatory Agencies

The Company is subject to oversight from regulatory agencies regarding environmental concerns which arise in the ordinary course of its business.

Forward Contracts

In the ordinary course of business, we enter into forward contracts for our commodity purchases and sales. Forward contracts are as follows at October 31, 2021:

QuantityAverage PriceDelivery Date
Purchase of corn (in bushels):
    Basis Contracts1,824,000 by 12/31/22
    Priced Contracts1,188,000 $5.13 by 1/31/23
        Total3,012,000 
Purchase of natural gas (in dekatherms):
    Priced contracts3,349,000 $2.88 by 10/31/24
        Total3,349,000 
Purchase of denaturant (in gallons):
    Priced contracts110,000 $2.07 by 11/30/21
        Total110,000 
Sales of dry distillers grains (in tons):
    Priced contracts8,500 $201.00 by 12/31/21
        Total8,500 
Sales of modified distillers grains (in tons)
    Priced contracts22,400 $98.00 by 8/31/22
        Total22,400 
Sales of corn oil (in pounds)
    Priced contracts1,789,000 $0.59 by 3/31/22
        Total1,789,000