Form 10-Q - Quarterly report [Sections 13 or 15(d)]

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2024

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

☒ COMMISSION FILE NO. 000-50253


SOUTH DAKOTA SOYBEAN PROCESSORS LLC
(Exact name of registrant as specified in its charter)


SD						46-0462968
(State or Other Jurisdiction of Incorporation or Organization)						(I.R.S. Employer Identification No.)

100 Caspian Ave; PO Box 500 Volga, SD						57071
(Address of Principal Executive Offices						(Zip Code)


(605) 627-9240
(Registrant's telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes x No ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes x No ¨

Indicate by check mark whether the registrant is a large accelerated filer, accelerated filer or a non-accelerated filer. See definition of “accelerated filer and large accelerated filer” in Rule 12b-2 of the Exchange Act. (Check one):

Large Accelerated Filer

Accelerated Filer

Non-Accelerated Filer

Smaller Reporting Company

Emerging Growth Company

(do not check if a smaller reporting company)

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for company with a new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act).

¨ Yes x No

APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY

PROCEEDINGS DURING THE PRECEDING FIVE YEARS

Check whether the registrant filed all documents and reports required to be filed by Section 12, 13 or 15(d) of the Exchange Act after the distribution of securities under a plan confirmed by a court. Yes ¨ No ¨

APPLICABLE ONLY TO CORPORATE ISSUERS

State the number of shares outstanding of each of the issuer’s classes of common equity, as of the latest practicable date: On May 15, 2024, the registrant had 30,411,500 capital units outstanding.

Table of Contents


			Page

Part I.	FINANCIAL INFORMATION		3

	Item I.	Consolidated Financial Statements (Unaudited)	3

	Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	19

	Item 3.	Quantitative and Qualitative Disclosures about Market Risk	23

	Item 4.	Controls and Procedures	23

Part II.	OTHER INFORMATION		23

	Item 1.	Legal Proceedings	23

	Item 1A.	Risk Factors	24

	Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	24

	Item 3.	Defaults among Senior Securities	24

	Item 4.	Mine Safety Disclosures	24

	Item 5.	Other Information	24

	Item 6.	Exhibits	24

Signatures			24

PART I – FINANCIAL INFORMATION

Item 1. Financial Statements

South Dakota Soybean Processors, LLC

Condensed Consolidated Financial Statements

March 31, 2024 and 2023

South Dakota Soybean Processors, LLC

Condensed Consolidated Balance Sheets


	March 31, 2024		December 31, 2023
	(Unaudited)
Assets
Current assets
Cash and cash equivalents	$	135,221,983	$	72,910,336
Trade accounts receivable	37,699,480		43,548,706
Inventories	81,944,047		72,045,951
Commodity derivative instruments	11,059,832		10,334,681
Margin deposits	5,119,332		1,342,978
Prepaid expenses	4,784,948		5,621,052
Total current assets	275,829,622		205,803,704

Property and equipment	269,130,477		246,347,535
Less accumulated depreciation	(72,886,791)		(71,419,705)
Total property and equipment, net	196,243,686		174,927,830

Other assets
Investments in related parties	15,073,570		13,637,150
Investments in cooperatives	1,797,563		1,737,862
Right-of-use lease asset, net	28,313,130		28,297,874
Other assets	656,000		336,500
Total other assets	45,840,263		44,009,386

Total assets	$	517,913,571	$	424,740,920

(continued on the following page)

South Dakota Soybean Processors, LLC

Condensed Consolidated Balance Sheets (continued)


	March 31, 2024		December 31, 2023
	(Unaudited)
Liabilities and Members' Equity
Current liabilities
Excess of outstanding checks over bank balance	$	4,976,072	$	15,728,259
Current maturities of long-term debt	5,700,000		—
Note payable - seasonal loan	54,255,183		—
Current operating lease liabilities	2,840,209		2,798,561
Accounts payable	7,557,127		7,462,996

Accrued commodity purchases	38,060,890		66,240,599
Commodity derivative instruments	5,493,307		5,939,687

Accrued expenses	3,377,865		6,700,564
Accrued interest	794,884		19,171
Deferred liabilities - current	1,549,884		737,503
Total current liabilities	124,605,421		105,627,340

Long-term liabilities
Long-term debt, net of current maturities	50,100,000		—
Long-term operating lease liabilities	22,860,420		22,827,885
Deferred liabilities	74,594		54,094
Total long-term liabilities	73,035,014		22,881,979

Commitments and contingencies (Notes 6, 7, 8, and 13)

Members' equity
Class A Units, no par value, 30,411,500 units issued and outstanding on March 31, 2024 and December 31, 2023	163,433,958		197,494,454
Non-controlling interests in consolidated entities	156,839,178		98,737,147
Total members' equity	320,273,136		296,231,601

Total liabilities and members' equity	$	517,913,571	$	424,740,920

The accompanying notes are an integral part of these condensed consolidated financial statements.

South Dakota Soybean Processors, LLC

Condensed Consolidated Statements of Operations (Unaudited)

For the Three-Month Periods Ended March 31, 2024 and 2023



	2024		2023

Net revenues	$	148,260,904	$	171,913,308

Cost of revenues:
Cost of product sold	120,122,939		124,238,702
Production	9,387,312		10,718,977
Freight and rail	11,231,938		12,122,778
Brokerage fees	182,666		189,280
Total cost of revenues	140,924,855		147,269,737

Gross profit	7,336,049		24,643,571

Operating expenses:
Administration	1,634,373		1,577,952

Operating income	5,701,676		23,065,619

Other income (expense):
Interest expense	(1,453,991)		(920,108)
Other non-operating income (expense)	1,401,412		(96,046)
Patronage dividend income	429,888		693,047
Total other income (expense)	377,309		(323,107)









Net income	6,078,985		22,742,512
Net income attributable to non-controlling interests in consolidating entities	604,531		—
Net income attributable to Company	$	5,474,454	$	22,742,512




Basic and diluted earnings per capital unit	$	0.18	$	0.75

Weighted average number of capital units outstanding for calculation of basic and diluted earnings per capital unit	30,411,500		30,411,500

The accompanying notes are an integral part of these condensed consolidated financial statements.

South Dakota Soybean Processors, LLC

Condensed Consolidated Statements of Changes in Members' Equity (Unaudited)

For the Three Months Ended March 31, 2024 and 2023


	Class A Units			Noncontrolling		Total
	Units	Amount		Interests		Equity

Balances, December 31, 2022	30,411,500	$	163,538,676	$	—	$	163,538,676
Net income	—	22,742,512		—		22,742,512
Distribution to members	—	(36,493,800)		—		(36,493,800)
Liquidation of members' equity	—	—		—		—
Balances, March 31, 2023	30,411,500	$	149,787,388	$	—	$	149,787,388

Balances, December 31, 2023	30,411,500	$	197,494,454	$	98,737,147	$	296,231,601
Net income	—	5,474,454		604,531		6,078,985
Distribution to members	—	(39,534,950)		—		(39,534,950)
Issuance of new capital units in consolidated entities	—	—		57,500,000		57,500,000
Liquidation of members' equity	—	—		(2,500)		(2,500)
Balances, March 31, 2024	30,411,500	$	163,433,958	$	156,839,178	$	320,273,136

The accompanying notes are an integral part of these condensed consolidated financial statements.

South Dakota Soybean Processors, LLC

Condensed Consolidated Statements of Cash Flows (Unaudited)

For the Three Months Ended March 31, 2024 and 2023


	2024		2023
Operating activities
Net income	$	6,078,985	$	22,742,512


Charges and credits to net income not affecting cash:
Depreciation and amortization	1,504,134		1,415,296
Net (gain) loss recognized on derivative activities	(1,496,432)		(14,483,613)
Loss (gain) on sale of property and equipment	—		(31,853)

Non-cash patronage dividends	(59,701)		(32,313)

Change in current assets and liabilities	(37,843,896)		(25,239,631)


Net cash provided by (used for) operating activities	(31,816,910)		(15,629,602)

Investing activities
Purchase of investments	—		(5,904,137)



Increase in other assets	(319,500)		—
Proceeds from sales of property and equipment	—		100,000
Purchase of property and equipment	(22,819,989)		(1,559,279)


Net cash used for investing activities	(23,139,489)		(7,363,416)

Financing activities
Change in excess of outstanding checks over bank balances	(10,752,187)		(4,100,716)
Net proceeds (payments) from seasonal borrowings	54,255,183		60,262,726
Proceeds from issuance of capital units	57,500,000		—
Distributions to members	(39,534,950)		(36,493,800)

Proceeds from long-term debt	56,400,000		6,581,850
Principal payments on long-term debt	(600,000)		(3,431,194)
Net cash provided by financing activities	117,268,046		22,818,866

Net change in cash and cash equivalents	62,311,647		(174,152)

Cash and cash equivalents, beginning of period	72,910,336		866,699

Cash and cash equivalents, end of period	$	135,221,983	$	692,547

Supplemental disclosures of cash flow information
Cash paid during the period for:
Interest	$	678,278	$	603,157

Income taxes	$	—	$	—

Noncash investing activities:
Soybean meal contributed as investment in related party	$	1,436,420	1,436,420

The accompanying notes are an integral part of these condensed consolidated financial statements.

South Dakota Soybean Processors, LLC

Notes to Condensed Consolidated Financial Statements

Note 1 - Principal Activity and Significant Accounting Policies

The unaudited condensed consolidated financial statements contained herein have been prepared pursuant to the rules and regulations of the Securities Exchange Commission. Certain information and note disclosures normally included in annual financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to those rules and regulations, although South Dakota Soybean Processors, LLC (the “Company”, “LLC”, “we”, “our”, or “us”) believes that the disclosures made are adequate to make the information not misleading.

In the opinion of management, all normal recurring adjustments considered necessary for a fair presentation have been included in the accompanying condensed consolidated financial statements. The results of operations and cash flows for interim periods are not necessarily indicative of results for a full year due in part to the seasonal nature of some of the Company’s businesses. The balance sheet data as of December 31, 2023 has been derived from audited financial statements but does not include all disclosures required by accounting principles generally accepted in the United States of America.

These statements should be read in conjunction with the financial statements and notes thereto for the year ended December 31, 2023, included in the Company’s annual report on Form 10-K filed with the Securities and Exchange Commission ("SEC") on March 22, 2024.

Principles of consolidation

The accompanying unaudited condensed consolidated financial statements include the accounts of the Company and its controlled subsidiaries, High Plains Partners, LLC, HPP SD Holdings, LLC, and High Plains Processing, LLC, after elimination of all material intercompany accounts, transactions, and profits.

Use of estimates

The preparation of consolidated 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 at the date of the financial statements and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Revenue

The Company accounts for all its revenues from contracts with customers under ASC 606, Revenue from Contracts with Customers.

The Company principally generates revenue from merchandising and transporting manufactured agricultural products used as ingredients in food, feed, energy, and industrial products. Revenue is measured based on the consideration specified in the contract with a customer and excludes any amounts collected on behalf of third parties (e.g. - taxes). The Company follows a policy of recognizing revenue at a single point in time when it satisfies its performance obligation by transferring control over a product to a customer. Control transfer typically occurs when goods are shipped from our facilities or at other predetermined control transfer points (for instance, destination terms). Shipping and handling costs related to contracts with customers for the sale of goods are accounted for as a fulfillment activity and are included in the cost of revenues. Accordingly, amounts billed to customers for such costs are included as a component of revenues.

Payments received in advance to the transfer of goods, or "contract liabilities", are included in "Deferred liabilities - current" on the Company's condensed consolidated balance sheets. These customer prepayments totaled $436,489 and $737,503 as of March 31, 2024 and December 31, 2023, respectively. Of the $737,503 balance as of December 31, 2023, the Company recognized $352,355 as revenues for the three months ended March 31, 2024. Of the $1,074,059 customer prepayments as of December 31, 2022, the Company recognized $723,453 of contract liabilities as revenues during the three months ended March 31, 2023.

South Dakota Soybean Processors, LLC

Notes to Condensed Consolidated Financial Statements

The following table presents a disaggregation of revenue from contracts with customers for the three-month periods ended March 31, 2024 and 2023, by product type:



	2024		2023

Soybean meal and hulls	$	83,398,043	$	97,123,852
Soybean oil and oil byproducts	64,862,861		74,789,456

Totals	$	148,260,904	$	171,913,308

Recent accounting pronouncements

Any recent accounting pronouncements are not expected to have a material impact on our condensed financial statements.

Note 2 - Accounts Receivable

Accounts receivable are considered past due when payments are not received on a timely basis in accordance with the Company’s credit terms, which are generally 30 days from invoice date. Accounts considered uncollectible are written off. The Company’s estimate of the allowance for credit losses is based on historical experience, its evaluation of the current status of receivables, and unusual circumstances, if any.

The following table presents the aging analysis of trade receivables as of March 31, 2024 and December 31, 2023:


	March 31, 2024		December 31, 2023
Past due:
Less than 30 days past due	$	10,242,048	$	11,438,298
30-60 days past due	368,848		1,425,727
60-90 days past due	64,005		114,387
Greater than 90 days past due	220,691		56,028
Total past due	10,895,592		13,034,440
Current	26,803,888		30,514,266

Totals	$	37,699,480	$	43,548,706

The following table provides information regarding the Company's allowance for credit losses as of March 31, 2024 and December 31, 2023:


	March 31, 2024		December 31, 2023

Balances, beginning of period	$	—	$	—
Amounts charged (credited) to costs and expenses	—		—
Additions (deductions)	—		—

Balances, end of period	$	—	$	—

In general, cash received is applied to the oldest outstanding invoice first, unless payment is for a specified invoice. The Company, on a case-by-case basis, may charge a late fee of 1.5% per month on past-due receivables.

South Dakota Soybean Processors, LLC

Notes to Condensed Consolidated Financial Statements

Note 3 - Inventories

The Company’s inventories consist of the following on March 31, 2024 and December 31, 2023:


	March 31, 2024		December 31, 2023
Finished goods	$	34,075,268	$	32,772,392
Raw materials	47,370,840		38,730,545
Supplies & miscellaneous	497,939		543,014

Totals	$	81,944,047	$	72,045,951

Finished goods and raw materials are valued at estimated market value, which approximates net realizable value. Supplies and other inventories are stated at the lower of cost or net realizable value.

Note 4 - Investments in Related Parties

The Company’s investments in related parties consist of the following on March 31, 2024 and December 31, 2023:


	March 31, 2024		December 31, 2023
Prairie AquaTech, LLC	1,553,727		1,553,727
Prairie AquaTech Investments, LLC	5,000,000		5,000,000
Prairie AquaTech Manufacturing, LLC	8,519,843		7,083,423

Totals	$	15,073,570	$	13,637,150

The Company measures its investments in Prairie AquaTech, LLC, Prairie AquaTech Investments, LLC, Prairie AquaTech Manufacturing, LLC and High Plains Partners, LLC at their cost less any impairment plus or minus any observable price changes in orderly transactions since these equity investments do not have readily determinable fair values.

The Company invested $1,436,420 and $1,436,420 of soybean meal in Prairie AquaTech Manufacturing, LLC for the three months ended March 31, 2024 and 2023, respectively, to be used in the entity's operations.

In February 2022, the Company announced its plans to construct a multi-seed processing plant near Mitchell, South Dakota. In September 2022, the Company entered into a capital contribution and commitment agreement with High Plains Partners, LLC. Per the agreement, the Company transferred to High Plains Partners, LLC all rights, title and interest to all of the tangible and intangible development rights, including engineering, permitting, studies, records, etc., totaling $5.0 million in value in exchange for 2,615 Class B units in High Plains Partners, LLC. The Company also committed to investing up to another $81.4 million for 19,454 Class B capital units in the entity. As of March 31, 2024, the Company had contributed $86.4 towards the project.

Effective September 30, 2023, the Company began consolidating the accounts of High Plains Processing, LLC, HPP SD Holdings, LLC, and High Plains Partners, LLC, formerly unconsolidated entities, into its financial statements . The Company and other regional investors committed to investing a total of $192.0 million into High Plains Partners. In September 2023, High Plains Partners created a joint venture with another partner to create High Plains Processing, LLC, to build a new multi-seed crush facility near Mitchell, South Dakota. Construction of the facility is estimated to be completed in late 2025. The consolidation is due to the Company's entering into a management agreement with the new processing facility along with its ability to appoint a majority of the board members of each entity. The financial data for previous periods has not been restated to reflect the consolidation of the three entities. The consolidation is not material to the financial position or results of operations for the periods presented and had no effect on previously reported net income. As of March 31, 2024, High Plains Partners, HPP SD Holdings, and High Plains Processing, LLC received a total of $155.6 million in proceeds from the issuance from capital units.

South Dakota Soybean Processors, LLC

Notes to Condensed Consolidated Financial Statements

Note 5 - Property and Equipment

The following is a summary of the Company's property and equipment at March 31, 2024 and December 31, 2023:


	2024						2023
	Cost		Accumulated Depreciation		Net		Net
Land	$	516,326	$	—	$	516,326	$	516,326
Land improvements	2,759,442		(1,272,569)		1,486,873		1,527,776
Buildings and improvements	29,615,350		(12,171,570)		17,443,780		17,629,613
Machinery and equipment	97,290,313		(57,602,917)		39,687,396		40,837,043
Railroad cars	10,411,185		(733,558)		9,677,627		9,729,683
Company vehicles	175,835		(110,778)		65,057		9,532
Furniture and fixtures	1,548,914		(995,399)		553,515		581,676
Construction in progress	126,813,112		—		126,813,112		104,096,181

Totals	$	269,130,477	$	(72,886,791)	$	196,243,686	$	174,927,830

Depreciation of property and equipment was $1,504,134 and $1,414,076 for the three months ended March 31, 2024 and 2023, respectively.

Note 6 - Note Payable – Seasonal Loan

The Company has entered into a revolving credit agreement with CoBank which expires on October 1, 2024. The purpose of the credit agreement is to finance the operating needs of the Company. Under this agreement, the Company could borrow up to $85 million, and advances on the revolving credit agreement are secured. Interest accrues at a variable rate (7.56% on March 31, 2024). The Company pays a 0.20% annual commitment fee on any funds not borrowed. There were advances outstanding of $54,255,183 and $0 on March 31, 2024 and December 31, 2023, respectively. The remaining available funds to borrow under the terms of the revolving credit agreement were $30.7 million as of March 31, 2024.

Note 7 - Long-Term Debt

The following is a summary of the Company's long-term debt on March 31, 2024 and December 31, 2023:


	March 31, 2024			December 31, 2023
Revolving term loan from CoBank, interest at variable rates (7.86% and 7.85% on March 31, 2024 and December 31, 2023, respectively), secured by substantially all property and equipment. The loan matures on March 20, 2026.	$	10,800,000		$	—
Note payable to CoBank, interest at variable rates (7.86% and 7.85% at March 31, 2024 and December 31, 2023, respectively), secured by substantially all property and equipment. Note matures March 20, 2028.	45,000,000			—
Total debt before debt issuance costs	55,800,000		55800000	—
Less current maturities	(5,700,000)			—


Total long-term debt	$	50,100,000		$	—

The Company entered into an agreement as of September 20, 2023, with CoBank to amend and restate its Credit Agreement, which includes the revolving term loan, note payable, and seasonal loan. Under the terms and conditions of the Credit Agreement, CoBank agreed to make advances to the Company for up to $12 million on the revolving term loan with a variable effective interest rate of 7.86%. The amount available for borrowing on the revolving term loan will decrease by $600,000 every six months until the loan's maturity date of March 20, 2028. The Company pays a 0.40% annual commitment fee on any funds not borrowed. The debt issuance costs of

South Dakota Soybean Processors, LLC

Notes to Condensed Consolidated Financial Statements

$24,000 paid by the Company were amortized over the term of the loan. The principal balance outstanding on the revolving term loan was $10.8 million and $0 as of March 31, 2024 and December 31, 2023, respectively. There were no remaining commitments available to borrow on the revolving term loan as of March 31, 2024.

On September 20, 2023, the Company entered into note payable to CoBank to borrow up to $90.0 million until August 1, 2024, the proceeds of which are to be used to finance the Company's investment in High Plains Partners, LLC. The Company will make semi-annual payments of $4.5 million beginning October 20, 2024 until the note's maturity on March 20, 2028. The principal balance outstanding on the note payable was $45.0 million and $0 as of March 31, 2024 and December 31, 2023, respectively. There was $45.0 million available to borrow on the note payable as of March 31, 2024.

Under this agreement, the Company is subject to compliance with standard financial covenants and the maintenance of certain financial ratios. The Company was in compliance with all covenants and conditions with CoBank as of March 31, 2024.

The following are minimum principal payments on long-term debt obligations for the twelve-month periods ending March 31:


2025	$	5,700,000
2026	10,200,000
2027	10,200,000
2028	29,700,000



Total	$	55,800,000

Note 8 - Operating Leases

The Company has several operating leases for railcars. These leases have terms ranging from 3-12 years and most do not have renewal terms provided. The leases require the Company to maintain the condition of the railcars, restrict the use of the railcars to specified products, such as soybean meal, hulls or oil, limit usage to the continental United States, Canada or Mexico, require approval to sublease to other entities and require the Company's submission of its financial statements. Lease expense for all railcars was $1,071,723 and $880,151 for the three months ended March 31, 2024 and 2023, respectively.

The following is a schedule of the Company's operating leases for railcars as of March 31, 2024:

Lessor

Quantity of
Railcars

Commencement
Date

Maturity
Date

Monthly
Payment

American Railcar Leasing

6/1/2021

5/31/2024

7,150

Andersons Railcar Leasing Co.

7/1/2019

6/30/2026

11,300

Andersons Railcar Leasing Co.

11/1/2021

10/31/2026

8,250

Farm Credit Leasing

9/1/2020

8/31/2032

34,929

Farm Credit Leasing

6/1/2021

5/31/2033

5,966

Farm Credit Leasing

10/1/2021

9/30/2033

4,624

Farm Credit Leasing

7/1/2022

6/30/2034

13,863

Farm Credit Leasing

8/1/2022

7/31/2034

30,422

Farm Credit Leasing

10/1/2022

9/30/2034

21,668

Farm Credit Leasing

100

4/1/2023

3/31/2035

81,466

Farm Credit Leasing

3/1/2024

2/29/2036

7,427

GATX Corporation

7/1/2020

6/30/2024

4,200

Trinity Capital

6/1/2021

5/31/2026

980

Wells Fargo Rail

109

3/1/2022

2/28/2027

51,775

South Dakota Soybean Processors, LLC

Notes to Condensed Consolidated Financial Statements

Lessor

Quantity of
Railcars

Commencement
Date

Maturity
Date

Monthly
Payment

Wells Fargo Rail

5/1/2022

4/30/2027

2,765

Wells Fargo Rail

5/1/2022

4/30/2027

5,925

Wells Fargo Rail

105

1/1/2023

12/31/2029

49,875

587

342,585

The Company also has a number of other operating leases for machinery and equipment. These leases have terms ranging from 3-7 years; however, most of these leases have automatic renewal terms. These leases require monthly payments of $5,029. Lease expense under these other operating leases was $11,272 and $11,219 for the three-month periods ended March 31, 2024 and 2023, respectively.

On March 19, 2020, the Company entered into an agreement with an entity in the western United States to provide storage and handling services for the Company's soybean meal. The Company paid the entity $3,300,000 after the entity's construction of additional storage and handling facilities. The agreement began on May 1, 2021 and will mature on April 30, 2027 but includes an additional seven-year renewal period at the sole discretion of the Company. Lease expense under this agreement was $58,929 and $58,929 for the three months ended March 31, 2024 and 2023, respectively.

Operating leases are included in right-to-use lease assets, current operating lease liabilities, and long-term lease liabilities on the Company's condensed consolidated balance sheets. These assets and liabilities are recognized at the commencement date based on the present value of remaining lease payments over the lease term using the Company's secured incremental borrowing rates or implicit rates, when readily determinable. Short-term operating leases, which have an initial term of 12 months or less, are not recorded on the condensed consolidated balance sheet.

Lease expense for these operating leases is recognized on a straight-line basis over the lease terms. The components of lease costs recognized within our condensed consolidated statements of operations for the three-month periods ended March 31, 2024 and 2023 were as follows:



	2024		2023

Cost of revenues - Freight and rail	$	1,071,723	$	880,151
Cost of revenues - Production	65,709		65,642
Administration expenses	4,492		4,506

Total operating lease costs	$	1,141,924	$	950,299

The following summarizes the supplemental cash flow information for the three-month periods ended March 31, 2024 and 2023:



	2024		2023

Cash paid for amounts included in the measurement of lease liabilities	$	1,024,371	$	875,288

Supplemental non-cash information:
Right-of-use assets obtained in exchange for lease liabilities	$	831,971	$	8,914,885

South Dakota Soybean Processors, LLC

Notes to Condensed Consolidated Financial Statements

The following summarizes the weighted-average remaining lease term and weighted-average discount rate as of March 31, 2024:


Weighted-average remaining lease-term - operating leases (in years)	9.2

Weighted-average discount rate - operating leases	4.3	%

The following is a maturity analysis of the undiscounted cash flows of the operating lease liabilities as of March 31, 2024:


	Railcars		Other		Total
Twelve-month periods ended March 31:
2025	$	4,001,717	$	54,569	$	4,056,286
2026	3,974,818		39,321		4,014,139
2027	3,770,292		34,787		3,805,079
2028	3,011,568		30,273		3,041,841
2029	3,002,877		17,820		3,020,697
Thereafter	13,161,412		3,616		13,165,028
Total lease payments	30,922,684		180,386		31,103,070
Less amount of lease payments representing interest	(5,380,719)		(21,722)		(5,402,441)

Total present value of lease payments	$	25,541,965	$	158,664	$	25,700,629

Note 9 - Member Distribution

On January 30, 2024, the Company’s Board of Managers approved a cash distribution of approximately $39.5 million, or $1.30 per capital unit. The distribution was paid in accordance with the Company’s operating agreement and distribution policy on February 1, 2024.

Note 10 - Derivative Instruments and Hedging Activities

In the ordinary course of business, the Company enters into contractual arrangements as a means of managing exposure to changes in commodity prices and, occasionally, foreign exchange and interest rates. The Company’s derivative instruments primarily consist of commodity futures, options and forward contracts, and interest rate swaps, caps and floors. Although these contracts may be effective economic hedges of specified risks, they are not designated as, nor accounted for, hedging instruments. These contracts are recorded on the Company’s condensed consolidated balance sheets at fair value as discussed in Note 11, Fair Value.

As of March 31, 2024 and December 31, 2023, the net value of the Company’s open futures, options and forward contracts was $5,566,525 and $4,394,994, respectively.


		As of March 31, 2024
	Balance Sheet Classification	Asset Derivatives		Liability Derivatives
Derivatives not designated as hedging instruments:
Commodity contracts	Current Assets/Liabilities	$	11,015,872	$	5,329,423
Foreign exchange contracts	Current Assets/Liabilities	43,960		129,329
Interest rate caps and floors	Current Assets/Liabilities	—		34,555

Totals		$	11,059,832	$	5,493,307

South Dakota Soybean Processors, LLC

Notes to Condensed Consolidated Financial Statements


		As of December 31, 2023
	Balance Sheet Classification	Asset Derivatives		Liability Derivatives
Derivatives not designated as hedging instruments:
Commodity contracts	Current Assets/Liabilities	$	10,178,089	$	5,584,506
Foreign exchange contracts	Current Assets/Liabilities	156,592		284,879
Interest rate caps and floors	Current Assets/Liabilities	—		70,302

Totals		$	10,334,681	$	5,939,687

During the three-month periods ended March 31, 2024 and 2023, net realized and unrealized gains (losses) on derivative transactions were recognized in the condensed consolidated statements of operations as follows:




	2024		2023
Derivatives not designated as hedging instruments:
Commodity contracts	$	1,414,819	$	13,826,366
Foreign exchange contracts	45,866		814,321
Interest rate swaps, caps and floors	35,747		(157,074)

Totals	$	1,496,432	$	14,483,613

The Company recorded gains (losses) in cost of goods sold related to its commodity derivative instruments of $1,496,432 and $14,483,613 for the three-month periods ended March 31, 2024 and 2023, respectively.

Note 11 - Fair Value

ASC 820, Fair Value Measurements and Disclosures, defines fair value, establishes a comprehensive framework for measuring fair value and expands disclosures that are required about fair value measurements. Specifically, this guidance establishes a hierarchy prioritizing the inputs to valuation techniques, giving the highest priority to quoted prices in active markets for identical assets and liabilities and the lowest priority to unobservable value inputs. The three levels of hierarchy and examples are as follows:

•Level 1 – Quoted prices are available in active markets for identical assets or liabilities as of the reported date. The types of assets and liabilities included in Level 1 are highly liquid and actively traded instruments with quoted prices, such as equities listed on the New York Stock Exchange and commodity derivative contracts listed on the Chicago Board of Trade (“CBOT”).

•Level 2 – Pricing inputs are other than quoted prices in active markets, but are either directly or indirectly observable as of the reported date. The types of assets and liabilities in Level 2 are typically either comparable to actively traded securities or contracts or priced with models using highly observable inputs, such as commodity prices using forward future prices.

•Level 3 – Significant inputs to pricing that are unobservable as of the reporting date. The types of assets and liabilities included in Level 3 are those with inputs requiring significant management judgment or estimation, such as complex and subjective models and forecasts used to determine the fair value of financial transmission rights.

The following tables set forth financial assets and liabilities measured at fair value in the condensed balance sheets and the respective levels to which fair value measurements are classified within the fair value hierarchy as of March 31, 2024 and December 31, 2023:

South Dakota Soybean Processors, LLC

Notes to Condensed Consolidated Financial Statements


	Fair Value as of March 31, 2024
	Level 1		Level 2		Level 3		Total
Financial assets:
Inventory	$	—	$	80,985,377	$	—	$	80,985,377
Commodity derivative instruments	$	5,566,525	$	—	$	—	$	5,566,525
Margin deposits (deficits)	$	5,119,332	$	—	$	—	$	5,119,332


	Fair Value as of December 31, 2023
	Level 1		Level 2		Level 3		Total
Financial assets:
Inventory	$	—	$	70,872,435	$	—	$	70,872,435
Commodity derivative instruments	$	4,394,994	$	—	$	—	$	4,394,994
Margin deposits	$	1,342,978	$	—	$	—	$	1,342,978

The Company enters into various commodity derivative instruments, including futures, options, swaps and other agreements. The fair value of the Company’s commodity derivatives is determined using unadjusted quoted prices for identical instruments on the CBOT. The Company estimates the fair market value of their finished goods and raw materials inventories using the market price quotations of similar forward futures contracts listed on the CBOT and adjusts for the local market adjustments derived from other grain terminals in our area.

The Company considers the carrying amount of significant classes of financial instruments on the condensed consolidated balance sheets, including cash, accounts receivable, and accounts payable, to be reasonable estimates of fair value due to their length or maturity. The fair value of the Company’s long-term debt approximates the carrying value. The interest rates on the long-term debt are similar to rates the Company would be able to obtain currently in the market.

The Company has patronage investments in other cooperatives and common and preferred stock holdings in privately held entities. There is no market for their patronage credits or the entity’s common and preferred holdings, and it is impracticable to estimate the fair value of the Company’s investments. These investments are carried on the balance sheet at the original cost plus the amount of patronage earnings allocated to the Company, less any cash distributions received.

Note 12 - Related Party Transactions

The Company has equity investments in Prairie AquaTech, LLC, Prairie AquaTech Manufacturing, LLC and Prairie AquaTech Investments, LLC. The Company sold soybean products to Prairie AquaTech, LLC and Prairie AquaTech Manufacturing, LLC totaling $4,021,936 and $2,947,866 during the three months ended March 31, 2024 and 2023, respectively. As of March 31, 2024 and December 31, 2023, Prairie AquaTech, LLC and Prairie AquaTech Manufacturing, LLC owed the Company $1,947,289 and $1,216,699, respectively.

Note 13 - Commitments and Contingencies

The Company maintains its cash in bank deposit accounts which, at times, may exceed federally insured limits. Accounts are guaranteed by the Federal Deposit Insurance Corporation (FDIC) up to certain limits. At March 31, 2024 and December 31, 2023, the Company had approximately $140.2 million and $34.1 million, respectively, in excess of FDIC insured limits. The Company has not experienced any losses in such accounts.

As of March 31, 2024, the Company had unpaid commitments of approximately $282.4 million for construction and acquisition of property and equipment, all of which are expected to be incurred by March 31, 2025.

From time to time in the ordinary course of our business, the Company may be named as a defendant in legal proceedings related to various issues, including without limitation, workers’ compensation claims, tort claims, or contractual disputes. The Company carries insurance that provides protection against general commercial liability claims, claims against our directors, officers and employees, business interruption, automobile liability, and workers'

South Dakota Soybean Processors, LLC

Notes to Condensed Consolidated Financial Statements

compensation. The Company is not currently involved in any material legal proceedings and is not aware of any potential claims.

Note 14 - Subsequent Event

The Company evaluated all of its activities and concluded that no subsequent events have occurred that would require recognition in its financial statements or disclosed in the notes to its financial statements.

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

Forward-Looking Statements

The information in this quarterly report on Form 10-Q for the three-month period ended March 31, 2024, (including reports filed with the Securities and Exchange Commission (the “SEC” or “Commission”), contains “forward-looking statements” that deal with future results, expectations, plans and performance, and should be read in conjunction with the financial statements and Annual Report on Form 10-K for the year ended December 31, 2023. Forward-looking statements may include statements which use words such as “believe,” “expect,” “anticipate,” “intend,” “plan,” “estimate,” “predict,” “hope,” “will,” “should,” “could,” “may,” “future,” “potential,” or the negatives of these words, and all similar expressions. Forward-looking statements involve numerous assumptions, risks and uncertainties. Actual results or actual business or other conditions may differ materially from those contemplated by any forward-looking statements. Factors that could cause actual results to differ materially from the forward-looking statements are identified in our Form 10-K for the year ended December 31, 2023.

We are not under any duty to update the forward-looking statements contained in this report, nor do we guarantee future results or performance or what future business conditions will be like. We caution you not to put undue reliance on any forward-looking statements, which speak only as of the date of this report.

Executive Overview and Summary

Our net income during the first quarter of 2024 was $5.5 million, compared to $22.7 million during the same period in 2023. In the first quarter of 2024, soybean processing margins decreased from above-average levels in 2023 due to several factors. Soybean oil demand from the energy sector declined sharply as refining margins for biodiesel and renewable diesel producers came under pressure due to overproduction and forced slowdowns at some production locations. In addition, imports of used cooking oil and other feedstocks flooded the market with lower-priced alternatives to soybean oil. Another contributing factor was the anticipated rebound in Argentine soybean production and processing. Last year’s drought in Argentina reduced available the soybean supply to Argentine processors, thus shifting meal demand to the U.S. and keeping our margins elevated in 2023. So far in 2024, however, ample soybean supply is expected in Argentina due to improved weather and Argentine processors are aggressively offering products into the global export markets.

Looking forward, we expect soy processing margins will be lower than last year, at least until the second quarter. For margins to increase, we will need a rebound in oil demand from the energy sector and robust U.S. exports of soybean meal to return. The addition of several new soybean processing plants in the U.S., which are expected to come online in 2024, could be another challenge, as new capacity will need to be assimilated into the market and could further weigh down processing margins for the rest of the year.

The construction of High Plains Processing, LLC's multi-seed plant near Mitchell, South Dakota, in which we have invested through our subsidiary, High Plains Partners, LLC, is progressing steadily. A mild winter has allowed us to stay on track with our construction schedule and kept winter-related expenses at a minimum. A large portion of the concrete is now in place, and steel and equipment shipments have been arriving over the past few months. If all goes according to plan, the plant's structures should start being built in the next few weeks, with anticipated start-up of the facility in the fall of 2025.

RESULTS OF OPERATIONS

Comparison of the Three Months Ended March 31, 2024 and 2023


	Three Months Ended March 31, 2024			Three Months Ended March 31, 2023
	$		% of Revenue	$		% of Revenue
Revenue	$	148,260,904	100.0	$	171,913,308	100.0
Cost of revenues	(140,924,855)		(95.1)	(147,269,737)		(85.7)
Gross profit	7,336,049		4.9	24,643,571		14.3
Operating expenses	(1,634,373)		(1.1)	(1,577,952)		(0.9)

Interest expense	(1,453,991)		(1.0)	(920,108)		(0.5)
Other non-operating income (expense)	1,831,300		1.2	597,001		0.3

Net income	6,078,985		4.1	22742512		13.2
Net income attributable to non-controlling interests in consolidated entities	604,531		0.4	—		—

Net income attributable to Company	$	5,474,454	3.7	$	22,742,512	13.2

Revenue – Revenue decreased by $23.7 million, or 13.8%, for the three-month period ended March 31, 2024, compared to the same period in 2023 due to a decrease in the average sales price of soybean products. The average price of soybean oil decreased 14.1% during the three months ended March 31, 2024, compared to the same period in 2023, due to a decrease in demand. Soybean oil demand from the energy sector dropped dramatically during the first quarter as refining margins for biodiesel and renewable diesel producers came under pressure from overproduction, thus causing slowdowns at some locations. In addition, imports of used cooking oil and other feedstocks flooded the market with lower-priced alternatives than soybean oil. Average soybean meal prices declined by 14.1% from 2023, being adversely affected by the return of Argentine processors to the global export market after a severe drought in 2023 shifted the export market to the U.S. from which we benefited.

Gross Profit/Loss – Gross profit decreased by $17.3 million, or 70.2%, for the three months ended March 31, 2024, compared to the same period in 2023. The decrease was mainly due to declining board crush margins, which were caused by a decrease in demand for soybean oil and an increase in global soybean meal supply which negatively affected U.S. export sales including ours.

Operating Expenses – Administrative expenses, including all selling, general and administrative expenses, increased approximately $56,000, or 3.6%, during the three-month period ended March 31, 2024, compared to the same period in 2023. The increase was primarily due to increased professional and related costs associated with the start-up of High Plains Processing's plant.

Interest Expense – Interest expense increased by $0.5 million, or 58.0%, during the three months ended March 31, 2024, compared to the same period in 2023. The increase in interest expense was due to a $13.7 million increase in borrowings from our lines of credit with our senior lender, CoBank. The average debt level was $74.0 million during the three months ended March 31, 2024, compared to $60.3 million during the same period in 2023. Debt levels increased mainly to fund our committed investment into High Plains Processing's plant through our subsidiary, High Plains Partners.

Other Non-Operating Income – Other non-operating income (expense), including patronage dividend income, increased $1.2 million during the three-month period ended March 31, 2024, compared to the same period in 2023. The increase in other non-operating income was due to a $1.2 million increase in interest income which we received from the deposit of investment proceeds received by a subsidiary in connection with its equity financing.

Net Income/Loss – During the three-month period ended March 31, 2024, we generated a net income of $5.5 million, compared to $22.7 million for the same period in 2023. The $17.3 million decrease was primarily attributable to decreased gross margins.

LIQUIDITY AND CAPITAL RESOURCES

Our primary sources of liquidity are cash provided by operations and borrowings under our two revolving lines of credit which are discussed below under “Indebtedness.” On March 31, 2024, we had working capital, defined as current assets less current liabilities, of approximately $151.2 million, compared to $53.6 million on March 31, 2023. Working capital increased between periods primarily due to investment proceeds raised by our consolidated subsidiaries, High Plains Partners, LLC and HPP SD Holdings, LLC, in connection with their equity financing, which were subsequently contributed to High Plains Processing, LLC for the construction and development of the new oilseed crush facility near Mitchell, South Dakota. We acquired a majority ownership in High Plains Partners in exchange for contributing to High Plain Partners cash, property, and various construction and development rights for the project. High Plains Partners, in turn, has contributed the cash, property, and rights to High Plains Partners' subsidiary, HPP SD Holdings, which owns the Mitchell plant through its wholly-owned subsidiary, High Plains Processing.

Comparison of the Three Months Ended March 31, 2024 and 2023


	2024		2023
Net cash provided by (used for) operating activities	$	(31,816,910)	$	(15,629,602)
Net cash provided by (used for) investing activities	(23,139,489)		(7,363,416)
Net cash provided by (used for) financing activities	117,268,046		22,818,866

Cash Flows Provided By (Used For) Operations

The $16.2 million increase in cash flows used for operating activities was largely due to a $17.3 million decrease in net income and a $16.5 million change in inventory. During the three-month period ended March 31, 2024, our inventories increased by $9.9 million, compared to a $6.6 million decrease during the same period in 2023. Partially offsetting changes in inventory and margin deposits, was a $9.7 million change in accrued commodity purchases. Accrued commodity purchases decreased by $28.2 million during the three months ended March 31, 2024, compared to $37.9 million in 2023.

Cash Flows Used For Investing Activities

The $15.8 million increase in cash flows used for investing activities during the three-month period ended March 31, 2024, compared to the same period in 2023, was due to a $15.3 million increase in expenditures for purchases of various property and equipment that were largely made for the construction and development of the Mitchell facility. During the three months ended March 31, 2024, we spent $22.8 million on purchases of property and equipment, compared to $7.5 million during the same period in 2023.

Cash Flows Provided By Financing Activities

The $94.4 million increase in cash flows provided by financing activities was principally due to a $57.5 million increase in investment proceeds received and a $46.7 million increase in net proceeds on borrowings. During the three months ended March 31, 2024, our subsidiaries, High Plains Partners and HPP SD Holdings, received $57.5 million in investment proceeds in connection with their equity financing, which were subsequently contributed to High Plains Processing for the construction and development of the new crush facility. Net proceeds on borrowings increased by $110.1 million during the three months ended March 31, 2024, compared to $63.4 million during the same period in 2023. Partially offsetting the increase is a $3.0 million increase in cash distributions to our members during the three-month period ended March 31, 2024, compared to the same period in 2022.

Indebtedness

We hold three lines of credit with CoBank, our primary lender, to meet the short and long-term needs of our operations. The first credit line is a revolving long-term loan. Under this loan, we may borrow funds, as needed, up to the credit line maximum, or $12.0 million, and then pay down the principal whenever excess cash is available. Repaid amounts may be borrowed up to the available credit line. The available credit line decreases by $0.6 million every six months until the credit line’s maturity on March 20, 2028, at which time a balloon payment for the remaining balance is due. We pay a 0.40% annual commitment fee on any funds not borrowed. The principal balance outstanding on the revolving term loan was $10.8 million and $0.0 million as of March 31, 2024 and

December 31, 2023, respectively. Under this loan, there were no additional funds available to borrow as of March 31, 2024.

The second credit line is a revolving working capital (seasonal) loan. The primary purpose of this loan is to finance our operating needs. We may borrow up to $85.0 million until the loan's maturity on October 1, 2024. We pay a 0.20% annual commitment fee on any funds not borrowed; however, we have the option to reduce the credit line during any given commitment period listed in the credit agreement to avoid the commitment fee. As of March 31, 2024 and December 31, 2023, the principal balance outstanding on this credit line was $54.3 million and $0.0 million, respectively, allowing us to borrow an additional $30.7 million as of March 31, 2024.

The third line of credit is a multiple advance note payable. The primary purpose of this note is to finance our investment and ownership in our subsidiary, High Plains Partners, LLC and other larger capital projects. High Plains Partners serves as our investment and ownership vehicle in HPP SD Holdings, LLC, which owns the Mitchell plant through its wholly-owned subsidiary, High Plains Processing, LLC. The maximum we may borrow under this note is $90.0 million. Under this loan, principal payments of $4.5 million are made every six months which begin on October 20, 2024 and end on the date of maturity, March 20, 2028, at which time a balloon payment is due for the remaining balance. The principal balance outstanding on this note was $45.0 million and $0 as of March 31, 2024 and December 31, 2023. Under this note, there were $45.0 million of funds available to borrow as of March 31, 2024.

The revolving, seasonal and multiple advance loans with CoBank are set up with a variable rate option. The variable rate is set daily by CoBank. We also have a fixed rate option on all three loans, allowing us to fix rates for any period between one day and the entire commitment period. The annual interest rate on the revolving term and multiple advance loans was 7.86% and 7.85% as of March 31, 2024 and December 31, 2023, respectively. As of March 31, 2024 and December 31, 2023, the interest rate on the seasonal loan was 7.56% and 7.55%, respectively. We were in compliance with all covenants and conditions under the loans as of March 31, 2024.

OFF BALANCE SHEET FINANCING ARRANGEMENTS

We do not utilize variable interest entities or other off-balance sheet financial arrangements.

Contractual Obligations

The following table shows our contractual obligations for the periods presented:


	Payment due by period
CONTRACTUAL OBLIGATIONS	Total		Less than 1 year		1-3 years		3-5 years		More than 5 years
Long-Term Debt Obligations (1)	$	66,618,000	$	9,804,000	$	26,298,000	$	30,516,000	$	—

Operating Lease Obligations	33,716,000		4,292,000		8,291,000		6,534,000		14,599,000

Totals	$	100,334,000	$	14,096,000	$	34,589,000	$	37,050,000	$	14,599,000

(1) Represents principal and interest payments on our notes payable, which are included on our Balance Sheet.

RECENT ACCOUNTING PRONOUNCEMENTS

See Note 1 of our Financial Statements under Part I, Item 1, for a discussion on the impact, if any, of the recently pronounced accounting standards.

CRITICAL ACCOUNTING POLICIES AND ESTIMATES

There have been no material changes to our critical accounting policies and estimates from those set forth in our Annual Report on Form 10-K for the year ended December 31, 2023.

Item 3. Quantitative and Qualitative Disclosures About Market Risk.

Commodities Risk & Risk Management. To reduce the price change risks associated with holding fixed-price commodity positions, we generally take opposite and offsetting positions by entering into commodity futures contracts (either a straight or options futures contract) on a regulated commodity futures exchange, the Chicago Board of Trade. While hedging activities reduce the risk of loss from changing market prices, such activities also limit the gain potential which otherwise could result from these significant fluctuations in market prices. Our policy is generally to maintain a hedged position within limits, but we can be long or short at any time. Our profitability is primarily derived from margins on soybeans processed, not from hedging transactions. Our management does not anticipate that hedging activities will have a significant impact on future operating results or liquidity. Hedging arrangements do not protect against the nonperformance of a cash contract.

At any one time, our inventory and purchase contracts for delivery to our facility may be substantial. We have risk management policies and procedures that include net position limits. They are defined by commodity and include both trader and management limits. This policy and procedure trigger a review by management when any trader is outside of position limits. The position limits are reviewed at least annually with the board of managers. We monitor current market conditions and may expand or reduce the limits in response to changes in those conditions.

An adverse change in market prices would not materially affect our profitability since we generally take opposite and offsetting positions by entering into commodity futures and forward contracts as economic hedges of price risk.

Foreign Currency Risk. We conduct essentially all of our business in U.S. dollars and have minimal direct risk regarding foreign currency fluctuations. Foreign currency fluctuations do, however, impact the ability of foreign buyers to purchase U.S. agricultural products and the competitiveness of and demand for U.S. agricultural products compared to the same products offered by foreign suppliers.

Interest Rate Risk. We manage exposure to interest rate changes by using variable-rate loan agreements with fixed-rate options. Long-term loan agreements can utilize the fixed option through maturity; however, the revolving ability to pay down and borrow back would be eliminated once the funds were fixed.

As of March 31, 2024, we had $0 in fixed-rate debt outstanding and $185.8 million of variable-rate lines of credit. Interest rate changes impact the amount of our interest payments and, therefore, our future earnings and cash flows. Assuming other variables remain constant, a 1.0% increase in interest rates on our variable-rate debt could have an estimated impact on profitability of approximately $1.9 million per year.

Item 4. Controls and Procedures.

Evaluation of Disclosure Controls and Procedures. Based on their evaluation as of the end of the period covered by this quarterly report on Form 10-Q, our principal executive officer and principal financial officer have concluded that our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) of the Securities Exchange Act of 1934) are effective to ensure that information required to be disclosed by us in reports that we file or submit under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the time periods specified in Securities and Exchange Commission rules and forms.

Changes in Internal Control Over Financial Reporting. There were no changes to our internal controls over financial reporting that materially affected, or are reasonably likely to materially affect, our internal controls over financial reporting during the quarter ended March 31, 2024.

PART II – OTHER INFORMATION

Item 1. Legal Proceedings.

From time to time in the ordinary course of our business, we may be named as a defendant in legal proceedings related to various issues, including without limitation, workers’ compensation claims, tort claims, or contractual disputes. We carry insurance that provides protection against general commercial liability claims, claims against our

directors, officer and employees, business interruption, automobile liability, and workers' compensation. We are not currently involved in any material legal proceedings and are not aware of any potential claims.

Item 1A. Risk Factors.

During the quarter ended March 31, 2024, there were no material changes to the Risk Factors disclosed in Item 1A (Part I) of our 2023 Annual Report on Form 10-K.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.

None.

Item 3. Defaults Upon Senior Securities.

None.

Item 4. Mine Safety Disclosures.

None.

Item 5. Other Information.

Insider Adoption or Termination of Trading Arrangements

During the three months ended March 31, 2024, none of our managers or officers adopted or terminated a “Rule 10b5-1 trading arrangement” or a “non-Rule 10b5-1 trading arrangement,” as those terms are defined in Item 408 of Regulation S-K..

Item 6. Exhibits.


Exhibit Number						Description
31.1						Rule 13a-14(a)/15d-14(a) Certification by Chief Executive Officer*
31.2						Rule 13a-14(a)/15d-14(a) Certification by Chief Financial Officer*
32.1						Section 1350 Certification by Chief Executive Officer*
32.2						Section 1350 Certification by Chief Financial Officer*

____________________________________________________________________________

* Filed herewith.

SIGNATURES

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


			SOUTH DAKOTA SOYBEAN PROCESSORS, LLC

Dated:	May 15, 2024	By	/s/ Thomas Kersting
			Thomas Kersting, Chief Executive Officer
			(Principal Executive Officer)

Dated:	May 15, 2024	By	/s/ Mark Hyde
			Mark Hyde, Chief Financial Officer
			(Principal Financial Officer)

Exhibit 31.1

Certification

I, Thomas Kersting, certify that:

1.I have reviewed the report on Form 10-Q of South Dakota Soybean Processors, LLC for the quarter ended March 31, 2024;

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

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

4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in the Exchange Act Rules 13a-15(f) and 15(d)-15(f)) for the registrant and have:

a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c.Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d.Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting;

5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial data; and

b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: May 15, 2024


/s/ Thomas Kersting
Thomas Kersting
Chief Executive Officer
(Principal Executive Officer)

Exhibit 31.2

Certification

I, Mark Hyde, certify that:

1.I have reviewed the report on Form 10-Q of South Dakota Soybean Processors, LLC for the quarter ended March 31, 2024;

b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: May 15, 2024


/s/ Mark Hyde
Mark Hyde
Chief Financial Officer
(Principal Financial and Accounting Officer)

Exhibit 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of South Dakota Soybean Processors, LLC (the “Company”) on Form 10-Q for the quarter ending March 31, 2024, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Thomas Kersting, the Chief Executive Officer (Principal Executive Officer) of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of Section 13(a) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company as of March 31, 2024 (the last date of the period covered by the Report).


Dated:	May 15, 2024	By	/s/ Thomas Kersting
			Thomas Kersting, Chief Executive Officer
			(Principal Executive Officer)

Exhibit 32.2

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of South Dakota Soybean Processors, LLC (the “Company”) on Form 10-Q for the quarter ending March 31, 2024, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Mark Hyde, the Chief Financial Officer (Principal Financial and Accounting Officer) of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of Section 13(a) of the Securities Exchange Act of 1934; and


Dated:	May 15, 2024	By	/s/ Mark Hyde
			Mark Hyde, Chief Financial Officer
			(Principal Financial and Accounting Officer)

Cover Page - shares	3 Months Ended
Cover Page - shares	Mar. 31, 2024	May 15, 2024
Cover [Abstract]
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2024
Document Transition Report	false
Entity File Number	000-50253
Entity Registrant Name	SOUTH DAKOTA SOYBEAN PROCESSORS LLC
Entity Incorporation, State or Country Code	SD
Entity Tax Identification Number	46-0462968
Entity Address, Address Line One	100 Caspian Ave
Entity Address, Address Line Two	PO Box 500
Entity Address, City or Town	Volga
Entity Address, State or Province	SD
Entity Address, Postal Zip Code	57071
City Area Code	605
Local Phone Number	627-9240
Entity Common Stock, Shares Outstanding		30,411,500
Entity Central Index Key	0001163609
Current Fiscal Year End Date	--12-31
Document Type	10-Q
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q1
Amendment Flag	false
Entity Filer Category	Non-accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes

Condensed Consolidated Balance Sheets - USD ($)	Mar. 31, 2024	Dec. 31, 2023
Assets
Cash and cash equivalents	$ 135,221,983	$ 72,910,336
Trade accounts receivable	37,699,480	43,548,706
Inventories	81,944,047	72,045,951
Commodity derivative instruments	11,059,832	10,334,681
Margin deposits	5,119,332	1,342,978
Prepaid expenses	4,784,948	5,621,052
Total current assets	275,829,622	205,803,704
Property and equipment	269,130,477	246,347,535
Less accumulated depreciation	(72,886,791)	(71,419,705)
Total property and equipment, net	196,243,686	174,927,830
Other assets
Investments in related parties	15,073,570	13,637,150
Investments in cooperatives	1,797,563	1,737,862
Right-of-use lease asset, net	28,313,130	28,297,874
Other Assets, Noncurrent	656,000	336,500
Total other assets	45,840,263	44,009,386
Total assets	517,913,571	424,740,920
Current liabilities
Excess of outstanding checks over bank balance	4,976,072	15,728,259
Current maturities of long-term debt	5,700,000	0
Note payable - seasonal loan	54,255,183	0
Current operating lease liabilities	2,840,209	2,798,561
Accounts payable	7,557,127	7,462,996
Accrued commodity purchases	38,060,890	66,240,599
Commodity derivative instruments	5,493,307	5,939,687
Accrued expenses	3,377,865	6,700,564
Accrued interest	794,884	19,171
Deferred liabilities - current	1,549,884	737,503
Total current liabilities	124,605,421	105,627,340
Long-term liabilities
Long-term debt, net of current maturities	50,100,000	0
Long-term operating lease liabilities	22,860,420	22,827,885
Deferred liabilities	74,594	54,094
Total long-term liabilities	73,035,014	22,881,979
Commitments and contingencies (Notes 6, 7, 8, and 13)
Members' equity
Class A Units, no par value, 30,411,500 units issued and outstanding on March 31, 2024 and December 31, 2023	163,433,958	197,494,454
Partners' Capital Attributable to Noncontrolling Interest	156,839,178	98,737,147
Total liabilities and members' equity	517,913,571	424,740,920
Partners' Capital, Including Portion Attributable to Noncontrolling Interest	320,273,136	$ 296,231,601
Capital Unit, Class A
Members' equity
Class A Units, no par value, 30,411,500 units issued and outstanding on March 31, 2024 and December 31, 2023	$ 163,433,958

Condensed Consolidated Balance Sheets [Parenthetical] - Capital Unit, Class A - shares	Mar. 31, 2024	Dec. 31, 2023
Common stock, shares issued	30,411,500	30,411,500
Common stock, shares outstanding	30,411,500	30,411,500

Condensed Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Net revenues	$ 148,260,904	$ 171,913,308
Cost of revenues:
Production	9,387,312	10,718,977
Brokerage fees	182,666	189,280
Total cost of revenues	140,924,855	147,269,737
Gross profit	7,336,049	24,643,571
Operating expenses:
Administration	1,634,373	1,577,952
Operating income	5,701,676	23,065,619
Other income (expense):
Interest expense	(1,453,991)	(920,108)
Other non-operating income (expense)	1,401,412	(96,046)
Patronage dividend income	429,888	693,047
Total other income (expense)	377,309	(323,107)
Net income	5,474,454	22,742,512
Net Income (Loss) Attributable to Noncontrolling Interest	$ 604,531	$ 0
Basic and Diluted Loss Per Capital Unit [Abstract]
Earnings Per Share, Basic	$ 0.18	$ 0.75
Weighted average number of capital units outstanding for calculation of diluted earnings per capital unit (in shares)	30,411,500	30,411,500
Weighted average number of capital units outstanding for calculation of basic earnings per capital unit (in shares)	30,411,500	30,411,500
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest	$ 6,078,985	$ 22,742,512
Product
Cost of revenues:
Cost of products and services	120,122,939	124,238,702
Freight and rail
Cost of revenues:
Cost of products and services	$ 11,231,938	$ 12,122,778

Condensed Statement of Changes in Members' Equity Statement - USD ($)	Total	Noncontrolling Interest	Capital Unit, Class A
Beginning Balances (in shares) at Dec. 31, 2022			30,411,500
Beginning Balances at Dec. 31, 2022			$ 163,538,676
Beginning Balances at Dec. 31, 2022	$ 163,538,676	$ 0
Net income	22,742,512		22,742,512
Distribution to members	$ (36,493,800)
Liquidation of members' equity (in shares)	0
Liquidation of members' equity	$ 0		$ 0
Ending Balances (in shares) at Mar. 31, 2023			30,411,500
Ending Balances at Mar. 31, 2023			$ 149,787,388
Ending Balances at Mar. 31, 2023	149,787,388	0
Beginning Balances (in shares) at Dec. 31, 2023			30,411,500
Beginning Balances at Dec. 31, 2023	197,494,454
Beginning Balances at Dec. 31, 2023	296,231,601	98,737,147
Net income	6,078,985	604,531	$ 5,474,454
Distribution to members	$ (39,534,950)		(39,534,950)
Liquidation of members' equity (in shares)	0
Liquidation of members' equity	$ (2,500)		$ 0
Issuance of new capital units in consolidated entities	57,500,000	57,500,000
Ending Balances (in shares) at Mar. 31, 2024			30,411,500
Ending Balances at Mar. 31, 2024	163,433,958		$ 163,433,958
Ending Balances at Mar. 31, 2024	$ 320,273,136	$ 156,839,178

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	3 Months Ended		18 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Mar. 31, 2024
Operating activities
Net income	$ 6,078,985	$ 22,742,512
Charges and credits to net income not affecting cash:
Depreciation and amortization	1,504,134	1,415,296
Net (gain) loss recognized on derivative activities	(1,496,432)	(14,483,613)
Loss (gain) on sale of property and equipment	0	(31,853)
Non-cash patronage dividends	(59,701)	(32,313)
Change in current assets and liabilities	(37,843,896)	(25,239,631)
Net cash provided by (used for) operating activities	(31,816,910)	(15,629,602)
Investing activities
Increase in other assets	(319,500)	0
Proceeds from sales of property and equipment	0	100,000
Purchase of property and equipment	(22,819,989)	(1,559,279)
Net cash used for investing activities	(23,139,489)	(7,363,416)
Financing activities
Change in excess of outstanding checks over bank balances	(10,752,187)	(4,100,716)
Net proceeds from seasonal borrowings	54,255,183	60,262,726
Proceeds from issuance of capital units	57,500,000	0	$ 155,600,000
Distributions to members	(39,534,950)	(36,493,800)
Proceeds from long-term debt	56,400,000	6,581,850
Principal payments on long-term debt	(600,000)	(3,431,194)
Net cash provided by financing activities	117,268,046	22,818,866
Net change in cash and cash equivalents	62,311,647	(174,152)
Cash and cash equivalents, beginning of period	72,910,336	866,699
Cash and cash equivalents, end of period	135,221,983	692,547	$ 135,221,983
Supplemental disclosures of cash flow information
Interest	678,278	603,157
Income taxes	0	0
Soybean meal contributed as investment in related party	1,436,420	1,436,420
Liquidation of members' equity	(2,500)	0
Purchase of investments	$ 0	$ (5,904,137)

Principal Activity and Significant Accounting Policies

3 Months Ended

Mar. 31, 2024

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Principal Activity and Significant Accounting Policies

Principles of consolidation

Use of estimates

Revenue

The Company accounts for all its revenues from contracts with customers under ASC 606, Revenue from Contracts with Customers.

The following table presents a disaggregation of revenue from contracts with customers for the three-month periods ended March 31, 2024 and 2023, by product type:



	2024		2023

Soybean meal and hulls	$	83,398,043	$	97,123,852
Soybean oil and oil byproducts	64,862,861		74,789,456

Totals	$	148,260,904	$	171,913,308

Recent accounting pronouncements

Any recent accounting pronouncements are not expected to have a material impact on our condensed financial statements.

Accounts Receivable

3 Months Ended

Mar. 31, 2024

Receivables [Abstract]

Accounts Receivable

The following table presents the aging analysis of trade receivables as of March 31, 2024 and December 31, 2023:


	March 31, 2024		December 31, 2023
Past due:
Less than 30 days past due	$	10,242,048	$	11,438,298
30-60 days past due	368,848		1,425,727
60-90 days past due	64,005		114,387
Greater than 90 days past due	220,691		56,028
Total past due	10,895,592		13,034,440
Current	26,803,888		30,514,266

Totals	$	37,699,480	$	43,548,706

The following table provides information regarding the Company's allowance for credit losses as of March 31, 2024 and December 31, 2023:


	March 31, 2024		December 31, 2023

Balances, beginning of period	$	—	$	—
Amounts charged (credited) to costs and expenses	—		—
Additions (deductions)	—		—

Balances, end of period	$	—	$	—

Inventories

3 Months Ended

Mar. 31, 2024

Inventory Disclosure [Abstract]

Inventories

The Company’s inventories consist of the following on March 31, 2024 and December 31, 2023:


	March 31, 2024		December 31, 2023
Finished goods	$	34,075,268	$	32,772,392
Raw materials	47,370,840		38,730,545
Supplies & miscellaneous	497,939		543,014

Totals	$	81,944,047	$	72,045,951

Finished goods and raw materials are valued at estimated market value, which approximates net realizable value. Supplies and other inventories are stated at the lower of cost or net realizable value.

Investments in Related Parties

3 Months Ended

Mar. 31, 2024

Investments, Debt and Equity Securities [Abstract]

Investments in Related Parties

The Company’s investments in related parties consist of the following on March 31, 2024 and December 31, 2023:


	March 31, 2024		December 31, 2023
Prairie AquaTech, LLC	1,553,727		1,553,727
Prairie AquaTech Investments, LLC	5,000,000		5,000,000
Prairie AquaTech Manufacturing, LLC	8,519,843		7,083,423

Totals	$	15,073,570	$	13,637,150

Property and Equipment

3 Months Ended

Mar. 31, 2024

Property, Plant and Equipment [Abstract]

Property and Equipment

The following is a summary of the Company's property and equipment at March 31, 2024 and December 31, 2023:


	2024						2023
	Cost		Accumulated Depreciation		Net		Net
Land	$	516,326	$	—	$	516,326	$	516,326
Land improvements	2,759,442		(1,272,569)		1,486,873		1,527,776
Buildings and improvements	29,615,350		(12,171,570)		17,443,780		17,629,613
Machinery and equipment	97,290,313		(57,602,917)		39,687,396		40,837,043
Railroad cars	10,411,185		(733,558)		9,677,627		9,729,683
Company vehicles	175,835		(110,778)		65,057		9,532
Furniture and fixtures	1,548,914		(995,399)		553,515		581,676
Construction in progress	126,813,112		—		126,813,112		104,096,181

Totals	$	269,130,477	$	(72,886,791)	$	196,243,686	$	174,927,830

Depreciation of property and equipment was $1,504,134 and $1,414,076 for the three months ended March 31, 2024 and 2023, respectively.

Note Payable - Seasonal Loan	3 Months Ended
Note Payable - Seasonal Loan	Mar. 31, 2024
Notes Payable Seasonal Loan [Abstract]
Note Payable - Seasonal Loan	Note Payable – Seasonal Loan The Company has entered into a revolving credit agreement with CoBank which expires on October 1, 2024. The purpose of the credit agreement is to finance the operating needs of the Company. Under this agreement, the Company could borrow up to $85 million, and advances on the revolving credit agreement are secured. Interest accrues at a variable rate (7.56% on March 31, 2024). The Company pays a 0.20% annual commitment fee on any funds not borrowed. There were advances outstanding of $54,255,183 and $0 on March 31, 2024 and December 31, 2023, respectively. The remaining available funds to borrow under the terms of the revolving credit agreement were $30.7 million as of March 31, 2024.

Long-Term Debt

3 Months Ended

Mar. 31, 2024

Debt Disclosure [Abstract]

Long-Term Debt

The following is a summary of the Company's long-term debt on March 31, 2024 and December 31, 2023:


	March 31, 2024			December 31, 2023
Revolving term loan from CoBank, interest at variable rates (7.86% and 7.85% on March 31, 2024 and December 31, 2023, respectively), secured by substantially all property and equipment. The loan matures on March 20, 2026.	$	10,800,000		$	—
Note payable to CoBank, interest at variable rates (7.86% and 7.85% at March 31, 2024 and December 31, 2023, respectively), secured by substantially all property and equipment. Note matures March 20, 2028.	45,000,000			—
Total debt before debt issuance costs	55,800,000		55800000	—
Less current maturities	(5,700,000)			—


Total long-term debt	$	50,100,000		$	—

The following are minimum principal payments on long-term debt obligations for the twelve-month periods ending March 31:


2025	$	5,700,000
2026	10,200,000
2027	10,200,000
2028	29,700,000



Total	$	55,800,000

Operating Leases (Notes)

3 Months Ended

Mar. 31, 2024

Leases [Abstract]

Operating Leases

The following is a schedule of the Company's operating leases for railcars as of March 31, 2024:

Lessor

Quantity of
Railcars

Commencement
Date

Maturity
Date

Monthly
Payment

American Railcar Leasing

6/1/2021

5/31/2024

7,150

Andersons Railcar Leasing Co.

7/1/2019

6/30/2026

11,300

Andersons Railcar Leasing Co.

11/1/2021

10/31/2026

8,250

Farm Credit Leasing

9/1/2020

8/31/2032

34,929

Farm Credit Leasing

6/1/2021

5/31/2033

5,966

Farm Credit Leasing

10/1/2021

9/30/2033

4,624

Farm Credit Leasing

7/1/2022

6/30/2034

13,863

Farm Credit Leasing

8/1/2022

7/31/2034

30,422

Farm Credit Leasing

10/1/2022

9/30/2034

21,668

Farm Credit Leasing

100

4/1/2023

3/31/2035

81,466

Farm Credit Leasing

3/1/2024

2/29/2036

7,427

GATX Corporation

7/1/2020

6/30/2024

4,200

Trinity Capital

6/1/2021

5/31/2026

980

Wells Fargo Rail

109

3/1/2022

2/28/2027

51,775

Lessor

Quantity of
Railcars

Commencement
Date

Maturity
Date

Monthly
Payment

Wells Fargo Rail

5/1/2022

4/30/2027

2,765

Wells Fargo Rail

5/1/2022

4/30/2027

5,925

Wells Fargo Rail

105

1/1/2023

12/31/2029

49,875

587

342,585



	2024		2023

Cost of revenues - Freight and rail	$	1,071,723	$	880,151
Cost of revenues - Production	65,709		65,642
Administration expenses	4,492		4,506

Total operating lease costs	$	1,141,924	$	950,299

The following summarizes the supplemental cash flow information for the three-month periods ended March 31, 2024 and 2023:



	2024		2023

Cash paid for amounts included in the measurement of lease liabilities	$	1,024,371	$	875,288

Supplemental non-cash information:
Right-of-use assets obtained in exchange for lease liabilities	$	831,971	$	8,914,885

The following summarizes the weighted-average remaining lease term and weighted-average discount rate as of March 31, 2024:


Weighted-average remaining lease-term - operating leases (in years)	9.2

Weighted-average discount rate - operating leases	4.3	%

The following is a maturity analysis of the undiscounted cash flows of the operating lease liabilities as of March 31, 2024:


	Railcars		Other		Total
Twelve-month periods ended March 31:
2025	$	4,001,717	$	54,569	$	4,056,286
2026	3,974,818		39,321		4,014,139
2027	3,770,292		34,787		3,805,079
2028	3,011,568		30,273		3,041,841
2029	3,002,877		17,820		3,020,697
Thereafter	13,161,412		3,616		13,165,028
Total lease payments	30,922,684		180,386		31,103,070
Less amount of lease payments representing interest	(5,380,719)		(21,722)		(5,402,441)

Total present value of lease payments	$	25,541,965	$	158,664	$	25,700,629

Member Distribution	3 Months Ended
Member Distribution	Mar. 31, 2024
Member Distribution [Abstract]
Member Distribution	Member Distribution On January 30, 2024, the Company’s Board of Managers approved a cash distribution of approximately $39.5 million, or $1.30 per capital unit. The distribution was paid in accordance with the Company’s operating agreement and distribution policy on February 1, 2024.

Derivative Instruments and Hedging Activities

3 Months Ended

Mar. 31, 2024

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instruments and Hedging Activities

As of March 31, 2024 and December 31, 2023, the net value of the Company’s open futures, options and forward contracts was $5,566,525 and $4,394,994, respectively.


		As of March 31, 2024
	Balance Sheet Classification	Asset Derivatives		Liability Derivatives
Derivatives not designated as hedging instruments:
Commodity contracts	Current Assets/Liabilities	$	11,015,872	$	5,329,423
Foreign exchange contracts	Current Assets/Liabilities	43,960		129,329
Interest rate caps and floors	Current Assets/Liabilities	—		34,555

Totals		$	11,059,832	$	5,493,307


		As of December 31, 2023
	Balance Sheet Classification	Asset Derivatives		Liability Derivatives
Derivatives not designated as hedging instruments:
Commodity contracts	Current Assets/Liabilities	$	10,178,089	$	5,584,506
Foreign exchange contracts	Current Assets/Liabilities	156,592		284,879
Interest rate caps and floors	Current Assets/Liabilities	—		70,302

Totals		$	10,334,681	$	5,939,687




	2024		2023
Derivatives not designated as hedging instruments:
Commodity contracts	$	1,414,819	$	13,826,366
Foreign exchange contracts	45,866		814,321
Interest rate swaps, caps and floors	35,747		(157,074)

Totals	$	1,496,432	$	14,483,613

Fair Value

3 Months Ended

Mar. 31, 2024

Fair Value Disclosures [Abstract]

Fair Value


	Fair Value as of March 31, 2024
	Level 1		Level 2		Level 3		Total
Financial assets:
Inventory	$	—	$	80,985,377	$	—	$	80,985,377
Commodity derivative instruments	$	5,566,525	$	—	$	—	$	5,566,525
Margin deposits (deficits)	$	5,119,332	$	—	$	—	$	5,119,332


	Fair Value as of December 31, 2023
	Level 1		Level 2		Level 3		Total
Financial assets:
Inventory	$	—	$	70,872,435	$	—	$	70,872,435
Commodity derivative instruments	$	4,394,994	$	—	$	—	$	4,394,994
Margin deposits	$	1,342,978	$	—	$	—	$	1,342,978

Related Party Transactions (Notes)	3 Months Ended
Related Party Transactions (Notes)	Mar. 31, 2024
Related Party Transactions [Abstract]
Related Party Transactions	Related Party Transactions The Company has equity investments in Prairie AquaTech, LLC, Prairie AquaTech Manufacturing, LLC and Prairie AquaTech Investments, LLC. The Company sold soybean products to Prairie AquaTech, LLC and Prairie AquaTech Manufacturing, LLC totaling $4,021,936 and $2,947,866 during the three months ended March 31, 2024 and 2023, respectively. As of March 31, 2024 and December 31, 2023, Prairie AquaTech, LLC and Prairie AquaTech Manufacturing, LLC owed the Company $1,947,289 and $1,216,699, respectively.

Commitments and Contingencies	3 Months Ended
Commitments and Contingencies	Mar. 31, 2024
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Contingencies The Company maintains its cash in bank deposit accounts which, at times, may exceed federally insured limits. Accounts are guaranteed by the Federal Deposit Insurance Corporation (FDIC) up to certain limits. At March 31, 2024 and December 31, 2023, the Company had approximately $140.2 million and $34.1 million, respectively, in excess of FDIC insured limits. The Company has not experienced any losses in such accounts. As of March 31, 2024, the Company had unpaid commitments of approximately $282.4 million for construction and acquisition of property and equipment, all of which are expected to be incurred by March 31, 2025. From time to time in the ordinary course of our business, the Company may be named as a defendant in legal proceedings related to various issues, including without limitation, workers’ compensation claims, tort claims, or contractual disputes. The Company carries insurance that provides protection against general commercial liability claims, claims against our directors, officers and employees, business interruption, automobile liability, and workers' compensation. The Company is not currently involved in any material legal proceedings and is not aware of any potential claims.

Subsequent Event	3 Months Ended
Subsequent Event	Mar. 31, 2024
Subsequent Events [Abstract]
Subsequent Event	Subsequent Event The Company evaluated all of its activities and concluded that no subsequent events have occurred that would require recognition in its financial statements or disclosed in the notes to its financial statements.

Pay vs Performance Disclosure - USD ($)	3 Months Ended
Pay vs Performance Disclosure - USD ($)	Mar. 31, 2024	Mar. 31, 2023
Pay vs Performance Disclosure
Net Income (Loss)	$ 5,474,454	$ 22,742,512

Insider Trading Arrangements	3 Months Ended
Insider Trading Arrangements	Mar. 31, 2024
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

Principal Activity and Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Use of Estimates, Policy	Use of estimates The preparation of consolidated 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 at the date of the financial statements and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
Revenue, Policy	Revenue The Company accounts for all its revenues from contracts with customers under ASC 606, Revenue from Contracts with Customers. The Company principally generates revenue from merchandising and transporting manufactured agricultural products used as ingredients in food, feed, energy, and industrial products. Revenue is measured based on the consideration specified in the contract with a customer and excludes any amounts collected on behalf of third parties (e.g. - taxes). The Company follows a policy of recognizing revenue at a single point in time when it satisfies its performance obligation by transferring control over a product to a customer. Control transfer typically occurs when goods are shipped from our facilities or at other predetermined control transfer points (for instance, destination terms). Shipping and handling costs related to contracts with customers for the sale of goods are accounted for as a fulfillment activity and are included in the cost of revenues. Accordingly, amounts billed to customers for such costs are included as a component of revenues. Payments received in advance to the transfer of goods, or "contract liabilities", are included in "Deferred liabilities - current" on the Company's condensed consolidated balance sheets. These customer prepayments totaled $436,489 and $737,503 as of March 31, 2024 and December 31, 2023, respectively. Of the $737,503 balance as of December 31, 2023, the Company recognized $352,355 as revenues for the three months ended March 31, 2024. Of the $1,074,059 customer prepayments as of December 31, 2022, the Company recognized $723,453 of contract liabilities as revenues during the three months ended March 31, 2023.
Recent Accounting Pronouncements	Recent accounting pronouncements Any recent accounting pronouncements are not expected to have a material impact on our condensed financial statements.
Consolidation, Policy		Principles of consolidation The accompanying unaudited condensed consolidated financial statements include the accounts of the Company and its controlled subsidiaries, High Plains Partners, LLC, HPP SD Holdings, LLC, and High Plains Processing, LLC, after elimination of all material intercompany accounts, transactions, and profits.

Principal Activity and Significant Accounting Policies (Tables)

3 Months Ended

Mar. 31, 2024

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Disaggregation of Revenue

The following table presents a disaggregation of revenue from contracts with customers for the three-month periods ended March 31, 2024 and 2023, by product type:



	2024		2023

Soybean meal and hulls	$	83,398,043	$	97,123,852
Soybean oil and oil byproducts	64,862,861		74,789,456

Totals	$	148,260,904	$	171,913,308

Accounts Receivable (Tables)

3 Months Ended

Mar. 31, 2024

Receivables [Abstract]

Past Due Financing Receivables

The following table presents the aging analysis of trade receivables as of March 31, 2024 and December 31, 2023:


	March 31, 2024		December 31, 2023
Past due:
Less than 30 days past due	$	10,242,048	$	11,438,298
30-60 days past due	368,848		1,425,727
60-90 days past due	64,005		114,387
Greater than 90 days past due	220,691		56,028
Total past due	10,895,592		13,034,440
Current	26,803,888		30,514,266

Totals	$	37,699,480	$	43,548,706

Schedule of Allowance for Doubtful Accounts Receivable

The following table provides information regarding the Company's allowance for credit losses as of March 31, 2024 and December 31, 2023:


	March 31, 2024		December 31, 2023

Balances, beginning of period	$	—	$	—
Amounts charged (credited) to costs and expenses	—		—
Additions (deductions)	—		—

Balances, end of period	$	—	$	—

Inventories (Tables)

3 Months Ended

Mar. 31, 2024

Inventory Disclosure [Abstract]

Schedule of Inventory, Current

The Company’s inventories consist of the following on March 31, 2024 and December 31, 2023:


	March 31, 2024		December 31, 2023
Finished goods	$	34,075,268	$	32,772,392
Raw materials	47,370,840		38,730,545
Supplies & miscellaneous	497,939		543,014

Totals	$	81,944,047	$	72,045,951

Investments in Related Parties (Tables)

3 Months Ended

Mar. 31, 2024

Investments, Debt and Equity Securities [Abstract]

Investments in Related Parties

The Company’s investments in related parties consist of the following on March 31, 2024 and December 31, 2023:


	March 31, 2024		December 31, 2023
Prairie AquaTech, LLC	1,553,727		1,553,727
Prairie AquaTech Investments, LLC	5,000,000		5,000,000
Prairie AquaTech Manufacturing, LLC	8,519,843		7,083,423

Totals	$	15,073,570	$	13,637,150

Property and Equipment (Tables)

3 Months Ended

Mar. 31, 2024

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment

The following is a summary of the Company's property and equipment at March 31, 2024 and December 31, 2023:


	2024						2023
	Cost		Accumulated Depreciation		Net		Net
Land	$	516,326	$	—	$	516,326	$	516,326
Land improvements	2,759,442		(1,272,569)		1,486,873		1,527,776
Buildings and improvements	29,615,350		(12,171,570)		17,443,780		17,629,613
Machinery and equipment	97,290,313		(57,602,917)		39,687,396		40,837,043
Railroad cars	10,411,185		(733,558)		9,677,627		9,729,683
Company vehicles	175,835		(110,778)		65,057		9,532
Furniture and fixtures	1,548,914		(995,399)		553,515		581,676
Construction in progress	126,813,112		—		126,813,112		104,096,181

Totals	$	269,130,477	$	(72,886,791)	$	196,243,686	$	174,927,830

Long-Term Debt (Tables)

3 Months Ended

Mar. 31, 2024

Debt Disclosure [Abstract]

Schedule of Debt

The following is a summary of the Company's long-term debt on March 31, 2024 and December 31, 2023:


	March 31, 2024			December 31, 2023
Revolving term loan from CoBank, interest at variable rates (7.86% and 7.85% on March 31, 2024 and December 31, 2023, respectively), secured by substantially all property and equipment. The loan matures on March 20, 2026.	$	10,800,000		$	—
Note payable to CoBank, interest at variable rates (7.86% and 7.85% at March 31, 2024 and December 31, 2023, respectively), secured by substantially all property and equipment. Note matures March 20, 2028.	45,000,000			—
Total debt before debt issuance costs	55,800,000		55800000	—
Less current maturities	(5,700,000)			—


Total long-term debt	$	50,100,000		$	—

Schedule of Maturities of Long-term Debt

The following are minimum principal payments on long-term debt obligations for the twelve-month periods ending March 31:


2025	$	5,700,000
2026	10,200,000
2027	10,200,000
2028	29,700,000



Total	$	55,800,000

Operating Leases (Tables)

3 Months Ended

Mar. 31, 2024

Leases [Abstract]

Operating Leases for Railcars

The following is a schedule of the Company's operating leases for railcars as of March 31, 2024:

Lessor

Quantity of
Railcars

Commencement
Date

Maturity
Date

Monthly
Payment

American Railcar Leasing

6/1/2021

5/31/2024

7,150

Andersons Railcar Leasing Co.

7/1/2019

6/30/2026

11,300

Andersons Railcar Leasing Co.

11/1/2021

10/31/2026

8,250

Farm Credit Leasing

9/1/2020

8/31/2032

34,929

Farm Credit Leasing

6/1/2021

5/31/2033

5,966

Farm Credit Leasing

10/1/2021

9/30/2033

4,624

Farm Credit Leasing

7/1/2022

6/30/2034

13,863

Farm Credit Leasing

8/1/2022

7/31/2034

30,422

Farm Credit Leasing

10/1/2022

9/30/2034

21,668

Farm Credit Leasing

100

4/1/2023

3/31/2035

81,466

Farm Credit Leasing

3/1/2024

2/29/2036

7,427

GATX Corporation

7/1/2020

6/30/2024

4,200

Trinity Capital

6/1/2021

5/31/2026

980

Wells Fargo Rail

109

3/1/2022

2/28/2027

51,775

Lessor

Quantity of
Railcars

Commencement
Date

Maturity
Date

Monthly
Payment

Wells Fargo Rail

5/1/2022

4/30/2027

2,765

Wells Fargo Rail

5/1/2022

4/30/2027

5,925

Wells Fargo Rail

105

1/1/2023

12/31/2029

49,875

587

342,585

Lease Cost, Supplemental Cash Flow Information and Weighted-average Lease Terms and Discount Rates

The components of lease costs recognized within our condensed consolidated statements of operations for the three-month periods ended March 31, 2024 and 2023 were as follows:



	2024		2023

Cost of revenues - Freight and rail	$	1,071,723	$	880,151
Cost of revenues - Production	65,709		65,642
Administration expenses	4,492		4,506

Total operating lease costs	$	1,141,924	$	950,299

The following summarizes the supplemental cash flow information for the three-month periods ended March 31, 2024 and 2023:



	2024		2023

Cash paid for amounts included in the measurement of lease liabilities	$	1,024,371	$	875,288

Supplemental non-cash information:
Right-of-use assets obtained in exchange for lease liabilities	$	831,971	$	8,914,885

The following summarizes the weighted-average remaining lease term and weighted-average discount rate as of March 31, 2024:


Weighted-average remaining lease-term - operating leases (in years)	9.2

Weighted-average discount rate - operating leases	4.3	%

Lessee, Operating Lease, Liability, Maturity

The following is a maturity analysis of the undiscounted cash flows of the operating lease liabilities as of March 31, 2024:


	Railcars		Other		Total
Twelve-month periods ended March 31:
2025	$	4,001,717	$	54,569	$	4,056,286
2026	3,974,818		39,321		4,014,139
2027	3,770,292		34,787		3,805,079
2028	3,011,568		30,273		3,041,841
2029	3,002,877		17,820		3,020,697
Thereafter	13,161,412		3,616		13,165,028
Total lease payments	30,922,684		180,386		31,103,070
Less amount of lease payments representing interest	(5,380,719)		(21,722)		(5,402,441)

Total present value of lease payments	$	25,541,965	$	158,664	$	25,700,629

Derivative Instruments and Hedging Activities (Tables)

3 Months Ended

Mar. 31, 2024

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule Of Derivatives Assets and Liabilities Not Designated As Hedging Instruments

As of March 31, 2024 and December 31, 2023, the net value of the Company’s open futures, options and forward contracts was $5,566,525 and $4,394,994, respectively.


		As of March 31, 2024
	Balance Sheet Classification	Asset Derivatives		Liability Derivatives
Derivatives not designated as hedging instruments:
Commodity contracts	Current Assets/Liabilities	$	11,015,872	$	5,329,423
Foreign exchange contracts	Current Assets/Liabilities	43,960		129,329
Interest rate caps and floors	Current Assets/Liabilities	—		34,555

Totals		$	11,059,832	$	5,493,307


		As of December 31, 2023
	Balance Sheet Classification	Asset Derivatives		Liability Derivatives
Derivatives not designated as hedging instruments:
Commodity contracts	Current Assets/Liabilities	$	10,178,089	$	5,584,506
Foreign exchange contracts	Current Assets/Liabilities	156,592		284,879
Interest rate caps and floors	Current Assets/Liabilities	—		70,302

Totals		$	10,334,681	$	5,939,687

Schedule Of Derivative Instruments, Net Realized and Unrealized Gain (Loss) On Derivatives Not Designated As Hedging Instruments




	2024		2023
Derivatives not designated as hedging instruments:
Commodity contracts	$	1,414,819	$	13,826,366
Foreign exchange contracts	45,866		814,321
Interest rate swaps, caps and floors	35,747		(157,074)

Totals	$	1,496,432	$	14,483,613

Fair Value of Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2024

Fair Value Disclosures [Abstract]

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


	Fair Value as of March 31, 2024
	Level 1		Level 2		Level 3		Total
Financial assets:
Inventory	$	—	$	80,985,377	$	—	$	80,985,377
Commodity derivative instruments	$	5,566,525	$	—	$	—	$	5,566,525
Margin deposits (deficits)	$	5,119,332	$	—	$	—	$	5,119,332


	Fair Value as of December 31, 2023
	Level 1		Level 2		Level 3		Total
Financial assets:
Inventory	$	—	$	70,872,435	$	—	$	70,872,435
Commodity derivative instruments	$	4,394,994	$	—	$	—	$	4,394,994
Margin deposits	$	1,342,978	$	—	$	—	$	1,342,978

Principal Activity and Significant Accounting Policies - Additional Information (Details) - USD ($)	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023	Dec. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Deferred revenue	$ 436,489		$ 737,503	$ 1,074,059
Contract with customer, revenue recognized	352,355	$ 723,453
Long-term liabilities	73,035,014		22,881,979
Present value of remaining lease payments	31,103,070
Right-of-use asset	$ 28,313,130		$ 28,297,874

Principal Activity and Significant Accounting Policies - Disaggregation of Revenue (Details) - USD ($)	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Disaggregation of Revenue [Line Items]
Revenue	$ 148,260,904	$ 171,913,308
Soybean meal and hulls
Disaggregation of Revenue [Line Items]
Revenue	83,398,043	97,123,852
Soybean oil and oil byproducts
Disaggregation of Revenue [Line Items]
Revenue	$ 64,862,861	$ 74,789,456

Accounts Receivable - Aging of Past Due Receivables (Details) - USD ($)	Mar. 31, 2024	Dec. 31, 2023
Financing Receivable, Past Due [Line Items]
Accounts receivable	$ 37,699,480	$ 43,548,706
Less than 30 days past due
Financing Receivable, Past Due [Line Items]
Accounts receivable	10,242,048	11,438,298
30-60 days past due
Financing Receivable, Past Due [Line Items]
Accounts receivable	368,848	1,425,727
60-90 days past due
Financing Receivable, Past Due [Line Items]
Accounts receivable	64,005	114,387
Greater than 90 days past due
Financing Receivable, Past Due [Line Items]
Accounts receivable	220,691	56,028
Total past due
Financing Receivable, Past Due [Line Items]
Accounts receivable	10,895,592	13,034,440
Current
Financing Receivable, Past Due [Line Items]
Accounts receivable	$ 26,803,888	$ 30,514,266

Accounts Receivable - Allowance for Doubtful Accounts Receivable (Details) - USD ($)	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Balances, beginning of period	$ 0	$ 0
Amounts charged (credited) to costs and expenses	0	0
Additions (deductions)	0	$ 0
Balances, end of period	$ 0

Accounts Receivable (Details Textual)	3 Months Ended
Accounts Receivable (Details Textual)	Mar. 31, 2024
Receivables [Abstract]
Percentage of late fee on past due receivables	1.50%

Inventories (Details) - USD ($)	Mar. 31, 2024	Dec. 31, 2023
Inventory Disclosure [Abstract]
Finished goods	$ 34,075,268	$ 32,772,392
Raw materials	47,370,840	38,730,545
Supplies & miscellaneous	497,939	543,014
Totals	$ 81,944,047	$ 72,045,951

Investments in Related Parties - Schedule of Investments (Details) - USD ($)	Mar. 31, 2024	Dec. 31, 2023
Equity Securities without Readily Determinable Fair Value [Line Items]
Totals	$ 15,073,570	$ 13,637,150
Prairie AquaTech, LLC
Equity Securities without Readily Determinable Fair Value [Line Items]
Totals	1,553,727	1,553,727
Prairie AquaTech Manufacturing, LLC
Equity Securities without Readily Determinable Fair Value [Line Items]
Totals	8,519,843	7,083,423
Prairie AquaTech Investments, LLC
Equity Securities without Readily Determinable Fair Value [Line Items]
Totals	$ 5,000,000	$ 5,000,000

Investments in Related Parties - Narrative (Details) - USD ($)		1 Months Ended	3 Months Ended		18 Months Ended
	Sep. 01, 2023	Sep. 30, 2022	Mar. 31, 2024	Mar. 31, 2023	Mar. 31, 2024
Equity Securities without Readily Determinable Fair Value [Line Items]
Soybean meal contributed as investment in related party			$ 1,436,420	$ 1,436,420
Investment company, committed capital	$ 192,000,000
Proceeds from issuance of capital units			57,500,000	$ 0	$ 155,600,000
High Plains Partners, LLC \| Collaborative Arrangement, Transaction with Party to Collaborative Arrangement
Equity Securities without Readily Determinable Fair Value [Line Items]
Contribution in exchange for Class B Units		$ 5,000,000
Additional contribution commitment		$ 81,400,000
Total project contributions			$ 86,400,000		$ 86,400,000
High Plains Partners, LLC \| Capital Unit, Class B \| Collaborative Arrangement, Transaction with Party to Collaborative Arrangement \| High Plains Partners, LLC
Equity Securities without Readily Determinable Fair Value [Line Items]
Units received in exchange for commitment (in units)		2,615
Additional units received in exchange for commitment (in units)		19,454

Property and Equipment (Details) - USD ($)	Mar. 31, 2024	Dec. 31, 2023
Property, Plant and Equipment [Line Items]
Cost	$ 269,130,477	$ 246,347,535
Accumulated Depreciation	(72,886,791)	(71,419,705)
Total property and equipment, net	196,243,686	174,927,830
Land
Property, Plant and Equipment [Line Items]
Cost	516,326
Accumulated Depreciation	0
Total property and equipment, net	516,326	516,326
Land improvements
Property, Plant and Equipment [Line Items]
Cost	2,759,442
Accumulated Depreciation	(1,272,569)
Total property and equipment, net	1,486,873	1,527,776
Buildings and improvements
Property, Plant and Equipment [Line Items]
Cost	29,615,350
Accumulated Depreciation	(12,171,570)
Total property and equipment, net	17,443,780	17,629,613
Machinery and equipment
Property, Plant and Equipment [Line Items]
Cost	97,290,313
Accumulated Depreciation	(57,602,917)
Total property and equipment, net	39,687,396	40,837,043
Railroad cars
Property, Plant and Equipment [Line Items]
Cost	10,411,185
Accumulated Depreciation	(733,558)
Total property and equipment, net	9,677,627	9,729,683
Company vehicles
Property, Plant and Equipment [Line Items]
Cost	175,835
Accumulated Depreciation	(110,778)
Total property and equipment, net	65,057	9,532
Furniture and fixtures
Property, Plant and Equipment [Line Items]
Cost	1,548,914
Accumulated Depreciation	(995,399)
Total property and equipment, net	553,515	581,676
Construction in progress
Property, Plant and Equipment [Line Items]
Cost	126,813,112
Accumulated Depreciation	0
Total property and equipment, net	$ 126,813,112	$ 104,096,181

Property and Equipment (Details Textual) - USD ($)	3 Months Ended
Property and Equipment (Details Textual) - USD ($)	Mar. 31, 2024	Mar. 31, 2023
Property, Plant and Equipment [Abstract]
Depreciation	$ 1,504,134	$ 1,414,076

Note Payable - Seasonal Loan (Details Textual) - USD ($)	3 Months Ended
	Mar. 31, 2024	Dec. 31, 2023
Line of Credit Facility [Line Items]
Line of credit facility, expiration date	Oct. 01, 2024
Advances outstanding	$ 10,800,000	$ 0
Seasonal Loan
Line of Credit Facility [Line Items]
Line of credit facility, maximum borrowing capacity	$ 85,000,000
Interest rate	7.56%
Commitment fee percentage	0.20%
Advances outstanding	$ 54,255,183	$ 0
Remaining available funds to borrow	$ 30,700,000

Long-Term Debt - Debt Schedule (Details) - USD ($)	Mar. 31, 2024	Dec. 31, 2023
Debt Instrument [Line Items]
Revolving term loan from CoBank, interest at variable rates (7.86% and 7.85% on March 31, 2024 and December 31, 2023, respectively), secured by substantially all property and equipment. The loan matures on March 20, 2026.	$ 10,800,000	$ 0
Total debt before debt issuance costs	55,800,000	0
Less current maturities	(5,700,000)	0
Total long-term debt	50,100,000	0
Revolving Term Loan \| Line of Credit
Debt Instrument [Line Items]
Revolving term loan from CoBank, interest at variable rates (7.86% and 7.85% on March 31, 2024 and December 31, 2023, respectively), secured by substantially all property and equipment. The loan matures on March 20, 2026.	$ 10,800,000	$ 0
Notes Payable \| Notes Payable to Banks
Debt Instrument [Line Items]
Interest variable rate	7.86%	7.85%
Note payable to CoBank, interest at variable rates (7.86% and 7.85% at March 31, 2024 and December 31, 2023, respectively), secured by substantially all property and equipment. Note matures March 20, 2028.	$ 45,000,000	$ 0
Revolving Term Loan
Debt Instrument [Line Items]
Revolving term loan from CoBank, interest at variable rates (7.86% and 7.85% on March 31, 2024 and December 31, 2023, respectively), secured by substantially all property and equipment. The loan matures on March 20, 2026.	$ 12,000,000
Revolving Term Loan \| Revolving Term Loan \| Line of Credit
Debt Instrument [Line Items]
Interest variable rate	7.86%	7.85%

Long-Term Debt - Narrative (Details) - USD ($)	3 Months Ended	41 Months Ended
Long-Term Debt - Narrative (Details) - USD ($)	Mar. 31, 2024	Mar. 20, 2028	Dec. 31, 2023
Line of Credit Facility [Line Items]
Advances outstanding	$ 10,800,000		$ 0
Periodic payment, principal	$ 600,000
Periodic payment period	6 months
Annual commitment fee percentage on unused capacity	0.40%
Forecast
Line of Credit Facility [Line Items]
Semi annual repayments of notes payable		$ 4,500,000
Notes Payable \| Notes Payable to Banks
Line of Credit Facility [Line Items]
Line of credit facility, maximum borrowing capacity	$ 90,000,000
Notes payable outstanding	45,000,000		$ 0
Line of credit facility, current borrowing capacity	45,000,000
Revolving Term Loan
Line of Credit Facility [Line Items]
Advances outstanding	$ 12,000,000
Variable effective interest rate	7.86%
Maturity date	Mar. 20, 2028
Debt issuance cost	$ 24,000
Remaining borrowing capacity	$ 0

Long-Term Debt - Maturities of Long Term Debt (Details)	Mar. 31, 2024 USD ($)
Debt Disclosure [Abstract]
2025	$ 5,700,000
2026	10,200,000
2027	10,200,000
2028	29,700,000
Long-term Debt	$ 55,800,000

Operating Leases - Additional Information (Details) - USD ($)	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023	Mar. 19, 2020
Lessee, Lease, Description [Line Items]
Operating lease expense	$ 1,071,723	$ 880,151
Operating lease, required monthly payments	5,029
Current operating lease liabilities	2,840,209		$ 2,798,561	$ 3,300,000
Operating lease renewal term				7 years
Entity in Western United States
Lessee, Lease, Description [Line Items]
Operating lease expense	$ 58,929	58,929
Railcars \| Minimum
Lessee, Lease, Description [Line Items]
Operating lease term	3 years
Railcars \| Maximum
Lessee, Lease, Description [Line Items]
Operating lease term	12 years
Machinery and equipment
Lessee, Lease, Description [Line Items]
Operating lease expense	$ 11,272	$ 11,219
Machinery and equipment \| Minimum
Lessee, Lease, Description [Line Items]
Operating lease term	3 days
Machinery and equipment \| Maximum
Lessee, Lease, Description [Line Items]
Operating lease term	7 days

Operating Leases - Schedule of Operating Leases (Details)	3 Months Ended
	Mar. 31, 2024 USD ($) railcar
Lessee, Lease, Description [Line Items]
Quantity of Railcars \| railcar	587
Monthly Payment \| $	$ 342,585
American Railcar Leasing, Maturity Date May 31, 2024
Lessee, Lease, Description [Line Items]
Quantity of Railcars \| railcar	13
Monthly Payment \| $	$ 7,150
Andersons Railcar Leasing Co. Maturity Date Jun 30, 2026
Lessee, Lease, Description [Line Items]
Quantity of Railcars \| railcar	20
Monthly Payment \| $	$ 11,300
Andersons Railcar Leasing Co. Maturity Date Oct 31, 2026
Lessee, Lease, Description [Line Items]
Quantity of Railcars \| railcar	15
Monthly Payment \| $	$ 8,250
Farm Credit Leasing, Maturity Date Aug 31, 2032
Lessee, Lease, Description [Line Items]
Quantity of Railcars \| railcar	87
Monthly Payment \| $	$ 34,929
Farm Credit Leasing, Maturity Date May 31, 2033
Lessee, Lease, Description [Line Items]
Quantity of Railcars \| railcar	8
Monthly Payment \| $	$ 5,966
Farm Credit Leasing, Maturity Date Sep 30, 2033
Lessee, Lease, Description [Line Items]
Quantity of Railcars \| railcar	9
Monthly Payment \| $	$ 4,624
Farm Credit Leasing, Maturity Date June 30, 2034
Lessee, Lease, Description [Line Items]
Quantity of Railcars \| railcar	23
Monthly Payment \| $	$ 13,863
Farm Credit Leasing, Maturity Date July 31, 2034
Lessee, Lease, Description [Line Items]
Quantity of Railcars \| railcar	30
Monthly Payment \| $	$ 30,422
Farm Credit Leasing, Maturity Date September 30, 2034
Lessee, Lease, Description [Line Items]
Quantity of Railcars \| railcar	20
Monthly Payment \| $	$ 21,668
Farm Credit Leasing, Maturity Date March 31, 2035
Lessee, Lease, Description [Line Items]
Quantity of Railcars \| railcar	100
Monthly Payment \| $	$ 81,466
Farm Credit Leasing, Maturity Date March 31, 2024
Lessee, Lease, Description [Line Items]
Quantity of Railcars \| railcar	10
Monthly Payment \| $	$ 7,427
GATX Corporation, Maturity Date Jun 30, 2024
Lessee, Lease, Description [Line Items]
Quantity of Railcars \| railcar	14
Monthly Payment \| $	$ 4,200
Trinity Capital, Maturity Date May 31, 2026 With Monthly Payment $10440
Lessee, Lease, Description [Line Items]
Quantity of Railcars \| railcar	2
Monthly Payment \| $	$ 980
Wells Fargo Rail, Maturity Date Feb 28, 2027
Lessee, Lease, Description [Line Items]
Quantity of Railcars \| railcar	109
Monthly Payment \| $	$ 51,775
Wells Fargo Rail, Maturity Date Apr 30, 2027 With Monthly Payment $2765
Lessee, Lease, Description [Line Items]
Quantity of Railcars \| railcar	7
Monthly Payment \| $	$ 2,765
Wells Fargo Rail, Maturity Date Apr 30, 2027 With Monthly Payment $5925
Lessee, Lease, Description [Line Items]
Quantity of Railcars \| railcar	15
Monthly Payment \| $	$ 5,925
Wells Fargo Rail, Maturity Date Dec 31, 2022
Lessee, Lease, Description [Line Items]
Quantity of Railcars \| railcar	105
Monthly Payment \| $	$ 49,875

Operating Leases - Components of Operating Lease Costs (Details) - USD ($)	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Lessee, Lease, Description [Line Items]
Operating lease costs	$ 1,141,924	$ 950,299
Cost of revenues - Freight and rail
Lessee, Lease, Description [Line Items]
Operating lease costs	1,071,723	880,151
Cost of revenues - Production
Lessee, Lease, Description [Line Items]
Operating lease costs	65,709	65,642
Administration expenses
Lessee, Lease, Description [Line Items]
Operating lease costs	$ 4,492	$ 4,506

Operating Leases - Supplemental Cash Flow Information (Details) - USD ($)	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Leases [Abstract]
Cash paid for amounts included in the measurement of lease liabilities	$ 1,024,371	$ 875,288
Right-of-use assets obtained in exchange for lease liabilities	$ 831,971	$ 8,914,885

Operating Leases - Additional Lease Information (Details)	Mar. 31, 2024
Leases [Abstract]
Weighted-average remaining lease-term - operating leases (in years)	9 years 2 months 12 days
Weighted-average discount rate - operating leases	4.30%

Operating Leases - Maturity Analysis of Undiscounted Cash Flows of Operating Lease Liabilities (Details)	Mar. 31, 2024 USD ($)
Lessee, Lease, Description [Line Items]
Twelve-month periods ended September 30, 2021	$ 4,056,286
Twelve-month periods ended September 30, 2022	4,014,139
Twelve-month periods ended September 30, 2023	3,805,079
Twelve-month periods ended September 30, 2024	3,041,841
Twelve-month periods ended September 30, 2025	3,020,697
Thereafter	13,165,028
Total lease payments	31,103,070
Less amount of lease payments representing interest	(5,402,441)
Total present value of lease payments	25,700,629
Railcars
Lessee, Lease, Description [Line Items]
Twelve-month periods ended September 30, 2021	4,001,717
Twelve-month periods ended September 30, 2022	3,974,818
Twelve-month periods ended September 30, 2023	3,770,292
Twelve-month periods ended September 30, 2024	3,011,568
Twelve-month periods ended September 30, 2025	3,002,877
Thereafter	13,161,412
Total lease payments	30,922,684
Less amount of lease payments representing interest	(5,380,719)
Total present value of lease payments	25,541,965
Other
Lessee, Lease, Description [Line Items]
Twelve-month periods ended September 30, 2021	54,569
Twelve-month periods ended September 30, 2022	39,321
Twelve-month periods ended September 30, 2023	34,787
Twelve-month periods ended September 30, 2024	30,273
Twelve-month periods ended September 30, 2025	17,820
Thereafter	3,616
Total lease payments	180,386
Less amount of lease payments representing interest	(21,722)
Total present value of lease payments	$ 158,664

Member Distribution (Details Textual) - USD ($) $ / shares in Units, $ in Millions		3 Months Ended
	Feb. 02, 2021	Mar. 31, 2024
Member Distribution [Abstract]
Declaration date		Jan. 30, 2024
Cash distributions paid	$ 39.5
Distributions paid, per unit (USD per share)	$ 1.30
Distribution date		Feb. 01, 2024

Derivative Instruments and Hedging Activities (Details Textual) - USD ($)	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative assets (liabilities), at fair value, net	$ 5,566,525		$ 4,394,994
Gains (losses) recorded in cost of goods sold related to commodity derivative instruments	$ 1,496,432	$ 14,483,613

Derivative Instruments and Hedging Activities (Details) - USD ($)	3 Months Ended	9 Months Ended
	Mar. 31, 2024	Sep. 30, 2023	Dec. 31, 2023
Derivatives not designated as hedging instruments:
Asset Derivatives	$ 11,059,832		$ 10,334,681
Liability Derivatives	$ 5,493,307		5,939,687
Commodity contracts
Derivatives not designated as hedging instruments:
Balance Sheet Classification	Current Assets/Liabilities	Current Assets/Liabilities
Asset Derivatives	$ 11,015,872		10,178,089
Liability Derivatives	$ 5,329,423		5,584,506
Foreign exchange contracts
Derivatives not designated as hedging instruments:
Balance Sheet Classification	Current Assets/Liabilities	Current Assets/Liabilities
Asset Derivatives	$ 43,960		156,592
Liability Derivatives	$ 129,329		284,879
Interest rate caps and floors
Derivatives not designated as hedging instruments:
Balance Sheet Classification	Current Assets/Liabilities	Current Assets/Liabilities
Asset Derivatives	$ 0		0
Liability Derivatives	$ 34,555		$ 70,302

Derivative Instruments and Hedging Activities (Details 1) - USD ($)	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Derivatives not designated as hedging instruments:
Net Gain (Loss) Recognized on Derivative Activities	$ 1,496,432	$ 14,483,613
Commodity contracts
Derivatives not designated as hedging instruments:
Net Gain (Loss) Recognized on Derivative Activities	1,414,819	13,826,366
Foreign exchange contracts
Derivatives not designated as hedging instruments:
Net Gain (Loss) Recognized on Derivative Activities	45,866	814,321
Interest rate caps and floors
Derivatives not designated as hedging instruments:
Net Gain (Loss) Recognized on Derivative Activities	$ 35,747	$ (157,074)

Fair Value of Financial Instruments (Details) - USD ($)	Mar. 31, 2024	Dec. 31, 2023
Financial assets:
Inventory	$ 80,985,377	$ 70,872,435
Margin deposits (deficits)	5,119,332
Margin deposits	5,119,332	1,342,978
Commodity contracts
Financial assets:
Commodity derivative instruments	5,566,525	4,394,994
Fair Value, Inputs, Level 1
Financial assets:
Inventory	0	0
Margin deposits (deficits)	5,119,332
Margin deposits		1,342,978
Fair Value, Inputs, Level 1 \| Commodity contracts
Financial assets:
Commodity derivative instruments	5,566,525	4,394,994
Fair Value, Inputs, Level 2
Financial assets:
Inventory	80,985,377	70,872,435
Margin deposits (deficits)	0
Margin deposits		0
Fair Value, Inputs, Level 2 \| Commodity contracts
Financial assets:
Commodity derivative instruments	0	0
Fair Value, Inputs, Level 3
Financial assets:
Inventory	0	0
Margin deposits (deficits)	0
Margin deposits		0
Fair Value, Inputs, Level 3 \| Commodity contracts
Financial assets:
Commodity derivative instruments	$ 0	$ 0

Related Party Transactions (Details) - Related Party - USD ($)	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
Related Party Transaction [Line Items]
Due to related parties	$ 4,021,936	$ 2,947,866
Due from related parties	$ 1,947,289		$ 1,216,699

Commitments and Contingencies (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Commitments and Contingencies Disclosure [Abstract]
Excess of FDIC insured limits	$ 140,200	$ 34,100
Unpaid commitments for construction and acquisition of property and equipment	$ 282,400