Climate Change Data

Environmental Metrics

Climate Goals & Targets

Environmental Challenges

• Industry-wide record low ethanol prices throughout most of 2018 and 2019 due to reduced demand and high industry inventory levels, compounded by the COVID-19 crisis.
• Slowdown in global and regional economic activity and disruption in transportation fuel demand resulting from the COVID-19 pandemic.
• Small refinery exemptions from the RFS which have reduced ethanol demand.
• Spread between ethanol and corn prices can vary significantly.
• Decreasing gasoline prices may lower ethanol prices.
• Potential corn shortages due to poor weather conditions.
• Volatile ethanol, distillers grains, and corn oil prices.
• Excess ethanol supply in the market.
• Demand for ethanol may not increase past current levels unless higher percentage blends are more widely used.
• Changes and advances in ethanol production technology.
• Decreases in ethanol demand may result in excess production capacity.
• Intense competition with larger, better-financed companies.
• Competition from alternative fuels and other technologies.
• Consumer resistance to ethanol.
• Reduced ethanol exports due to tariffs.
• Distillers grains demand and prices negatively impacted by Chinese tariffs.
• Reduced ethanol exports to Brazil due to tariffs.
• Overcapacity within the ethanol industry.
• Potential failure of investments in Guardian Hankinson, LLC and Ring-neck Energy & Feed, LLC.
• Failures of information technology infrastructure.
• Cyber attacks or information security breaches.
• Government incentives for ethanol production may be reduced or eliminated.
• California Low Carbon Fuel Standard may decrease demand for corn-based ethanol.
• Changes in environmental regulations or violations of these regulations.
• Carbon dioxide may be regulated in the future.
• Government policies and regulations affecting the agricultural sector.
• Negative impacts of higher ethanol tariffs and other disruptions to international agricultural trade.

Mitigation Strategies

• Reduced ethanol production rate early in 2020.
• Entered into a loan agreement with the Small Business Association through First State Bank for $760,400 as part of the Paycheck Protection Program.
• Entered into a Third Amendment to its credit agreement with Farm Credit Services of America, PCA and Farm Credit Services of America, FLCA.
• Completed a plant expansion project which expanded production capacity.
• Engaged in hedging transactions to minimize risks from fluctuations in the prices of corn, natural gas, and ethanol.
• Purchased insurance to cover potential losses.
• Marketing agreements with RPMG to market ethanol, distillers grains, and corn oil.
• Marketing a portion of distillers grains internally to local consumers.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

Climate Goals & Targets

Environmental Challenges

• Slowdown in global and regional economic activity, demand for our products and the potential for labor shortages and shipping disruptions resulting from pandemics including COVID-19
• Reductions in the corn-based ethanol use requirement in the Federal Renewable Fuels Standard
• The impact of small refinery exemptions from the RFS which have reduced ethanol demand
• Oversupply in the ethanol industry resulting in lower market ethanol prices
• Negative operating margins which result from lower ethanol prices
• Lower ethanol prices due to the Chinese and Brazilian ethanol tariffs
• Lower distillers grains prices due to the Chinese anti-dumping and countervailing duty tariffs
• Lower gasoline prices may negatively impact ethanol prices which could hurt our profitability
• Availability and costs of raw materials, particularly corn and natural gas
• Changes in the price and market for ethanol, distillers grains and corn oil
• Our ability to maintain liquidity and maintain our risk management positions
• Changes in the availability and cost of credit
• Changes and advances in ethanol production technology
• The effectiveness of our risk management strategy to offset increases in the price of our raw materials and decreases in the prices of our products
• Overcapacity within the ethanol industry causing supply to exceed demand
• Our ability to market and our reliance on third parties to market our products
• The decrease or elimination of governmental incentives which support the ethanol industry
• Changes in the weather or general economic conditions impacting the availability and price of corn
• Our ability to generate free cash flow to invest in our business and service our debt
• Changes in plant production capacity or technical difficulties in operating the plant
• Changes in our business strategy, capital improvements or development plans
• Our ability to retain key employees and maintain labor relations
• Our liability resulting from potential litigation
• Competition from alternative fuels and alternative fuel additives

Mitigation Strategies

• Reduced ethanol production rate early in 2020
• Operated at full production capacity for 2021 fiscal year
• Entered into a loan agreement with the Small Business Association through First State Bank, Gothenburg, NE on April 4, 2020 for $760,400 as part of the Paycheck Protection Program under Division A, Title I of the Coronavirus Aid, Relief and Economic Security Act (CARES Act)
• Entered into a Fourth Amendment to our credit agreement with Farm Credit Services of America, PCA and Farm Credit Services of America, FLCA (“Farm Credit”) (the “Fourth Amendment”) to increase working capital and net worth covenants
• Completed a plant expansion project which expanded our production capacity to approximately 90 million gallons of ethanol per year

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Not disclosed

Environmental Achievements

• Not disclosed

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Not disclosed

Mitigation Strategies

• Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed