`UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                    Form 10-Q
(Mark one)

|X| QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
    1934

                  For the quarterly period ended June 30, 2008

[ ] TRANSITION  REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES  EXCHANGE ACT
    OF 1934

             For the transition period from _________ to __________

                        Commission file number 000-53041

                      SOUTHWEST IOWA RENEWABLE ENERGY, LLC
             (Exact name of registrant as specified in its charter)

         Iowa                                           20-2735046
         ----                                           ----------
(State or other jurisdiction                (I.R.S. Employer Identification No.)
of incorporation or organization)

                2101 42nd Avenue, Council Bluffs, Iowa 51501-8409
                -------------------------------------------------
                    (Address of principal executive offices)

                                 (712) 366-0392
                                 --------------
              (Registrant's telephone number, including area code)

       ------------------------------------------------------------------
(Former name, former address and former fiscal year, if changed since last report)

Indicate by check mark whether the registrant has (1) 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 [ ] No |X|

Indicate by check mark whether the registrant is a large  accelerated  filer, an
accelerated filer, a non-accelerated  filer, or a smaller reporting company. See
the definitions of "large accelerated  filer,"  "accelerated filer" and "smaller
reporting company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer [ ] Accelerated filer [ ] Non-accelerated filer [ ]

                         Smaller reporting company |X|

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

As of June 30, 2008, the issuer had 13,139 Units issued and outstanding.`

---

`TABLE OF CONTENTS

                          PART I--FINANCIAL INFORMATION

Item Number          Item Matter                                                                      Page Number

Item 1.              Unaudited Financial  Statements . . . . . . . . . . . . . . . . . . . . . . .         1

Item 2.              Management's Discussion and Analysis of Financial Condition and Results of
                     Operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .          13

Item 4T.             Controls  and  Procedures . . . . . . . . . . . . . . . . . . . . . . . . . .         20

                           PART II--OTHER INFORMATION

Item 1.              Legal Proceedings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .         20

Item 1A.             Risk Factors. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .         20

Item 2.              Unregistered Sales of Equity Securities and Use of Proceeds. . . . . . . . .          20

Item 3.              Defaults Upon Senior Securities . . . . . . . . . . . . . . . . . . . . . . .         20

Item 4.              Submission of Matters to a Vote of Security Holders . . . . . . . . . . . . .         20

Item 5.              Other Information  . . . . . . . . . . . . . . . . . . . . . . . . . . . . .          20

Item 6.              Exhibits. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .         20

Signatures  .  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .         22




                                       i`

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`PART I--FINANCIAL INFORMATION

Item 1.           Financial Statements.

                      Southwest Iowa Renewable Energy, LLC
                          (A Development Stage Company)

                                 Balance Sheets
                      June 30, 2008 and September 30, 2007

                                                                        June 30,                 September 30,
                                                                          2008                       2007
                                                                       (unaudited)
----------------------------------------------------------------------------------------------------------------

ASSETS (Notes 3 and 4)

CURRENT ASSETS

     Cash and cash equivalents                                     $      4,141,214          $        1,742,940
     Prepaid expenses and other                                              72,909                     124,952
                                                                   ---------------------------------------------
         Total current assets                                             4,214,123                   1,867,892

PROPERTY AND EQUIPMENT

     Land                                                                 2,064,090                   2,064,090
     Construction in progress                                           145,422,606                  59,504,547
     Office and other equipment                                             100,751                      79,090
                                                                   ---------------------------------------------
                                                                        147,587,447                  61,647,727
     Accumulated depreciation                                              (20,161)                     (7,233)
                                                                   ---------------------------------------------
                                                                        147,567,286                  61,640,494
OTHER ASSETS

     Cash held for plant construction                                            --                  15,638,542
     Deferred financing costs, net                                        3,355,111                   2,800,846
                                                                   ---------------------------------------------
                                                                          3,355,111                  18,439,388


                                                                   $    155,136,520          $       81,947,774
                                                                   =============================================



See Notes to Unaudited Financial Statements.



                                       1`

---

`Southwest Iowa Renewable Energy, LLC
                          (A Development Stage Company)

                           Balance Sheets (continued)
                      June 30, 2008 and September 30, 2007


                                                                             June 30,            September 30,
                                                                               2008                  2007
                                                                           (unaudited)
----------------------------------------------------------------------------------------------------------------

LIABILITIES AND MEMBERS' EQUITY

CURRENT LIABILITIES

     Accounts and retainage payable                                  $           6,673,611   $        3,657,500
     Accrued expenses                                                              863,473               43,730
     Current maturities of long-term debt (Note 4)                              34,486,509            1,303,250
                                                                   ---------------------------------------------
         Total current liabilities                                              42,023,593            5,004,480

LONG-TERM DEBT, less current maturities (Note 4)                                38,779,650              168,333

COMMITMENTS (Notes 5, 6 and 7)

MEMBERS' EQUITY (Note 2)

     Members' capital                                                           76,474,111           76,474,111
     Earnings (deficit) accumulated during the development stage               (2,140,834)              300,850
                                                                   ---------------------------------------------
                                                                                74,333,277           76,774,961

                                                                     $         155,136,520   $       81,947,774
                                                                     ===========================================


See Notes to Unaudited Financial Statements.


                                       2`

---

`Southwest Iowa Renewable Energy, LLC
                          (A Development Stage Company)

                       Unaudited Statements of Operations

                                             Three Months                                         Nine Months      March 28, 2005
                                                 Ended        Three Months       Nine Months         Ended            (Date of
                                                June 30,       Ended June           Ended           June 30,        Inception) to
                                                 2008           30, 2007        June 30, 2008         2007          June 30, 2008
-----------------------------------------------------------------------------------------------------------------------------------


Revenues                                  $            ---    $         ---     $         ---  $           ---  $              ---                                                               $
                                             --------------   --------------    --------------    -------------    ----------------

General and administrative expenses
    (Note 6)                                     1,412,924        1,460,264         2,717,137        2,170,334           5,860,247
                                             --------------   --------------    --------------    -------------    ----------------
    (Loss) before other income                 (1,412,924)      (1,460,264)       (2,717,137)      (2,170,334)         (5,860,247)
                                             --------------   --------------    --------------    -------------    ----------------

Other income and (expense):
    Grant
                                                    95,937          114,235           136,513          114,235             305,994
    Interest income                                 19,189          669,273           124,415        2,685,373           3,372,457
    Miscellaneous income                             2,800            1,800            14,525           34,308              75,046
    Loss on disposal of property
                                                       ---              ---               ---              ---            (34,084)
                                             --------------   --------------    --------------    -------------    ----------------
                                                   117,926          785,308           275,453        2,833,916           3,719,413
                                             --------------   --------------    --------------    -------------    ----------------

      Net income (loss)                   $    (1,294,998)    $   (674,956)  $    (2,441,684)  $       663,582  $       (2,140,834)
                                             ==============   ==============    ==============    =============    ================

Weighted average units outstanding                  13,139           13,086            13,139           11,701               6,878
                                             ==============   ==============    ==============    =============    ================

    Net income (loss) per unit - basic
    and diluted                                   ($98.56)         ($51.58)         ($185.83)           $56.71           ($311.26)
                                             ==============   ==============    ==============    =============    ================


See Notes to Unaudited Financial Statements


                                       3`

---

`Southwest Iowa Renewable Energy, LLC
                          (A Development Stage Company)

                     Unaudited Statements of Members' Equity

                                                                                       Earnings
                                                                                       (Deficit)
                                                                                      Accumulated
                                                                                      During the
                                                                Members' Capital   Development Stage       Total
----------------------------------------------------------------------------------------------------------------------

Balance, March 28, 2005 (date of inception)                     $             ---  $             ---  $           ---
     Issuance of 285 Series A membership units (Note 2)                   570,000                ---          570,000
     Subscription receivable for 257 Series A membership
     units (Note 2)                                                     (514,000)                ---        (514,000)
     Net (loss)                                                               ---           (29,634)         (29,634)
                                                               -------------------------------------------------------
Balance, September 30, 2005                                                56,000           (29,634)           26,366
     Receipt of membership units subscribed                               514,000                ---          514,000
     Issuance of 1,047 Series A membership units (Note 2)               5,202,000                ---        5,202,000
     Issuance of 1 Series B membership unit (Note 2)                        6,000                ---            6,000
     Net (loss)                                                               ---          (752,231)        (752,231)
                                                               -------------------------------------------------------
Balance, September 30, 2006                                             5,778,000          (781,865)        4,996,135
     Issuance of 7,473 Series A membership units (Note 2)              44,838,000                ---       44,838,000
     Issuance of 3,333 Series B membership units (Note 2)              19,998,000                ---       19,998,000
     Issuance of 1,000 Series C membership units (Note 2)               6,000,000                ---        6,000,000
     Offering costs                                                     (139,889)                ---        (139,889)
     Net income                                                               ---          1,082,715        1,082,715
                                                               -------------------------------------------------------
Balance, September 30, 2007                                            76,474,111            300,850       76,774,961
        Net (loss)                                                            ---        (2,441,684)      (2,441,684)
                                                               =======================================================
Balance, June 30, 2008                                          $      76,474,111  $     (2,140,834)  $    74,333,277
                                                               =======================================================


See Notes to Unaudited Financial Statements.


                                       4`

---

`Southwest Iowa Renewable Energy, LLC
                          (A Development Stage Company)

                       Unaudited Statements of Cash Flows
                                                                                                                     March 28, 2005
                                                                               Nine Months        Nine Months           (Date of
                                                                                  Ended              Ended            Inception) to
                                                                              June 30, 2008       June 30,2007        June 30, 2008
-------------------------------------------------------------------------------------------------------------------------------------

CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss)                                                         $      (2,441,684)  $        663,582    $      (2,140,834)
Adjustments to reconcile net income (loss) to net cash (used in)
operating activities:
     Depreciation                                                                     12,928             3,179                20,161
     Loss on disposal of property                                                        ---               ---                34,084
     Changes in working capital components
         (Increase) decrease in prepaid
         expenses and other                                                           52,043          (50,741)              (72,909)
         Increase (decrease) in accounts payable                                     504,369          (50,772)               560,942
         Increase (decrease) in accrued expenses                                      11,686         (101,074)                55,416
                                                                          -----------------------------------------------------------
              Net cash (used in) operating activities                            (1,860,658)           464,224           (1,543,140)
                                                                          -----------------------------------------------------------
CASH FLOWS FROM INVESTING ACTIVITIES
     Purchase of property and equipment                                         (82,015,361)      (30,007,929)         (141,511,786)
     (Increase) decrease in cash for plant construction                           15,638,542      (37,815,286)                   ---
     Proceeds from sale of property and equipment
                                                                                         ---               ---             1,415,541
                                                                          -----------------------------------------------------------
         Net cash (used in) investing activities                                (66,376,819)      (67,823,215)         (140,096,245)
                                                                          -----------------------------------------------------------
CASH FLOWS FROM FINANCING ACTIVITIES
     Proceeds from issuance of membership units                           $              ---  $       69,876,000  $       75,654,000
     Payments of financing costs                                                   (785,648)         (1,169,441)         (2,626,494)
     Payments for offering costs                                                         ---                 ---           (139,889)
     Proceeds from long-term borrowings                                           72,721,316             200,000          74,204,566
     Payments of long-term borrowings                                            (1,299,917)             (6,667)         (1,311,584)
                                                                          -----------------------------------------------------------
         Net cash provided by financing activities                                70,635,751          68,899,892         145,780,599
                                                                          -----------------------------------------------------------

         Net increase (decrease) in cash and cash equivalents                      (879,240)           1,540,901           4,141,214

CASH AND CASH EQUIVALENTS
     Beginning                                                                     1,742,940             820,743                 ---
                                                                          -----------------------------------------------------------
     Ending                                                               $        4,141,214  $        2,361,644  $        4,141,214
                                                                          ===========================================================

SUPPLEMENTAL DISCLOSURES OF NONCASH INVESTING, OPERATING AND FINANCING
ACTIVITIES
     Construction in progress included in accounts payable                $        6,112,669  $        1,039,144  $        6,112,669
     Membership units issued for deferred financing costs                                ---                 ---             960,000
     Interest capitalized and included in long-term debt and accruals              1,412,617                 ---           1,412,617

See Notes to Unaudited Financial Statements.



                                       5`

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`Southwest Iowa Renewable Energy, LLC
(A Development Stage Company)

Notes to Financial Statements
--------------------------------------------------------------------------------

Note 1. Nature of Business and Significant Accounting Policies

Principal business activity: Southwest Iowa Renewable Energy, LLC (the Company),
located in Council Bluffs, Iowa, was formed in March 2005 to build a 110 million
gallon annual production dry mill corn-based ethanol plant. As of June 30, 2008,
the  Company is in the  development  stage with its  efforts  being  principally
devoted to  organizational,  equity-raising  activities and  construction of the
ethanol plant.

The accompanying  financial statements as of June 30, 2008 and for the three and
nine months ended June 30, 2008 and 2007 and the period from inception March 28,
2005 to June 30, 2008 are unaudited and reflect all adjustments (consisting only
of normal  recurring  adjustments)  which are,  in the  opinion  of  management,
necessary  for a fair  presentation  of the  financial  position  and  operating
results for the interim periods.  These unaudited financial statements and notes
should be read in conjunction  with the audited  financial  statements and notes
thereto, for the period from inception March 28, 2005 to September 30, 2007. The
results of operations for the three and nine months ended June 30, 2008 and 2007
and  the  period  from  inception  March  28,  2005  to June  30,  2008  are not
necessarily indicative of the results for the entire year.

A summary of significant accounting policies follows:

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

     Concentrations  of credit risk:  The Company's cash balances are maintained
     in bank  deposit  accounts  which at times  may  exceed  federally  insured
     limits.

     Cash and cash  equivalents:  The Company  considers  all highly liquid debt
     instruments  purchased  with a maturity of three  months or less to be cash
     equivalents.

     Cash  held  for  plant  construction:  The cash  that  will be used for the
     construction of the plant has been classified as long-term according to its
     estimated use.

     Deferred  financing  costs:  Deferred  financing costs  associated with the
     construction,  revolving  and  bridge  loans and are  recorded  at cost and
     include  expenditures  directly  related to securing debt financing.  These
     costs are  amortized  using the effective  interest  method over the 5-year
     term of the Construction  and Revolving Loan Credit Facility  agreement and
     over the 12 month term of the Bridge Loan.

     Deferred offering costs: The Company  classifies all costs directly related
     to raising capital as deferred  offering costs until the capital is raised,
     at which  point  the  costs  were  reclassified  as an  offset to equity as
     issuance costs.


                                       6`

---

`Southwest Iowa Renewable Energy, LLC
(A Development Stage Company)

Notes to Financial Statements
--------------------------------------------------------------------------------

Note 1. Nature of Business and Significant Accounting Policies (Continued)

     Property  and  equipment:   Property  and  equipment  is  stated  at  cost.
     Construction in progress is comprised of costs related to the  construction
     of the ethanol plant,  depreciation  of such amounts will commence when the
     plant begins  operations  over estimated  useful lives ranging from 5 to 40
     years. As of June 30, 2008,  approximately  $2,304,800 of interest has been
     capitalized.  Depreciation is computed using the straight-line  method over
     the following estimated useful lives:

                                                               Years
                                                         ------------------
       Office and other equipment                              5 - 7

     Maintenance and repairs are expenses as incurred;  major  improvements  and
     betterments are capitalized.

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

     Net income  (loss) per unit:  Earnings  per unit have been  computed on the
     basis of the  weighted  average  number of units  outstanding  during  each
     period presented.

     Grant  income:  The Company  recognizes  grant  income as other  income for
     reimbursement  of expenses  incurred upon  complying with the conditions of
     the grant.

     Organizational   costs  and  startup  costs:   The  Company   expenses  all
     organizational and startup costs as incurred.

     Fair value of financial instruments:  The carrying amounts of cash and cash
     equivalents,  accounts payable and accrued expenses approximate fair value.
     The fair value of long-term debt is estimated based on anticipated interest
     rates which management believes would currently be available to the Company
     for similar issues of debt, taking into account the current credit risk and
     other market factors.

Note 2. Members' Equity

Effective  March 7, 2008,  the  Company  entered  into a Series C Unit  Issuance
Agreement (the "Series C Agreement")  with ICM, Inc. ("ICM") and a Series E Unit
Issuance  Agreement  (the  "Series  E  Agreement",  together  with the  Series C
Agreement,  the "Unit  Issuance  Agreements")  with Bunge  North  America,  Inc.
("Bunge")  in  connection  with the LCs (see Note 3).  Under  the Unit  Issuance
Agreements,  the  Company  has  agreed  to pay  Bunge and ICM each a fee for the
issuances  of their  respective  LCs equal to 6% per annum of the  undrawn  face
amount of their  respective LCs. The Unit Issuance  Agreements  provide that the
Company  will use its best efforts to raise funds  through a subsequent  private
placement  offering of Units (the  "Private  Placement"),  or such other form of
equity or debt financing as the Company's Board of Directors may deem necessary,
in an amount sufficient to pay off the Bridge Loan (see Note 3) in full prior to
maturity.  Although the Company anticipates that funds obtained from the Private
Placement or such other equity or debt  financing  will enable it to pay off the
Bridge Loan in full prior to maturity,  in the event that the LCs are drawn upon
as discussed  below or if Bunge or ICM make any payment to Commerce  Bank,  N.A.
(the Bridge  Lender) that reduces  amounts owed by the Company  under the Bridge
Loan (each, a "Bridge Loan Payment"),  the Unit Issuance Agreements provide that
the Company will immediately reimburse Bunge and/or ICM, as applicable,  for the
amount of such Bridge Loan Payment by issuing Units to Bunge and ICM, as further
described below.


                                       7`

---

`Southwest Iowa Renewable Energy, LLC
(A Development Stage Company)

Notes to Financial Statements
--------------------------------------------------------------------------------

Note 2. Members' Equity (Continued)

Under the Series C Agreement,  if ICM makes a Bridge Loan  Payment,  the Company
will immediately issue Series C Units to ICM based on a Unit price that is equal
to the lesser of $3,000 or one half (1/2) of the lowest  purchase  price paid by
any  party  for a Unit who  acquired  (or who has  entered  into any  agreement,
instrument  or document to acquire)  such Unit as part of the Private  Placement
after the date of the  Series C  Agreement  but prior to the date of any  Bridge
Loan Payment made by ICM. The Series C Agreement  further provides that ICM will
have the right to purchase its pro rata share of any Units issued by the Company
at any time after the date of the Series C Agreement.

Under the Series E Agreement,  if Bunge makes a Bridge Loan Payment, the Company
will  immediately  issue  Series E Units to Bunge  based on a Unit price that is
equal to the  lesser of $3,000 or one half (1/2) of the  lowest  purchase  price
paid  by any  party  for a Unit  who  acquired  (or  who has  entered  into  any
agreement,  instrument  or document to acquire) such Unit as part of the Private
Placement  after the date of the Series E Agreement but prior to the date of any
Bridge Loan Payment made by Bunge. The Series E Agreement  further provides that
Bunge will have the right to purchase  its pro rata share of any Units issued by
the Company at any time after the date of the Series E Agreement.

Note 3. Construction and Revolving Loan/Credit Agreements

In May 2007, the Company entered into a $126,000,000  senior secured debt credit
facility  with  AgStar  Financial  Services,  PCA  ("Agent"),  consisting  of an
$111,000,000  construction loan and a $15,000,000 revolving line of credit under
the terms of a Credit  Agreement  (the  "Credit  Agreement").  Letters of credit
pertaining  to the  construction  may be drawn on the  construction  loan not to
exceed $3,000,000 in aggregate. Borrowings under the construction loan include a
variable  interest  rate based on LIBOR plus  3.65% for each  advance  under the
Credit Agreement. Upon completion of construction,  the construction loan may be
segmented into two credit facilities, an amortized term facility of $101,000,000
and a revolving term facility of $10,000,000.  Upon conversion,  the Company has
the  option of  converting  50% of the term note into  fixed  rate  loans at the
lender's  bonds rate plus 3.25%.  The portion of the term loan not fixed and the
term  revolving  line of credit will accrue  interest equal to LIBOR plus 3.45%.
LIBOR at June 30, 2008 was 2.46%. The Credit Agreement  requires the maintenance
of certain  financial and non-financial  covenants.  Borrowings under the Credit
Agreement are  collateralized by substantially all of the Company's assets.  The
construction/revolving  term credit facility require monthly principal  payments
starting the seventh month following  conversion of the  construction  loan to a
term  loan.  The  conversion  will  occur  60  days  after   completion  of  the
construction.  The loan will be  amortized  over 114 months and will mature five
years after the conversion date. The revolving term credit agreement  expires in
five  years  after  the  conversion  of the  loan at which  time  the  principal
outstanding is due.  Borrowings are subject to borrowing  base  restrictions  as
defined in the Credit  Agreement.  The Credit  Agreement  also includes  certain
prepayment  penalties.  As of June 30, 2008 the  outstanding  balance  under the
Credit Agreement was approximately $38,621,000.

On March 7, 2008, the Company amended the terms of the Credit Agreement and made
the following arrangements:

The  Company  obtained  a Bridge  Loan from the  Bridge  Lender  in the  maximum
principal  amount of $36,000,000  (the "Bridge  Loan").  The Bridge Loan debt is
secured by two letters of credit, described below.


                                       8`

---

`Southwest Iowa Renewable Energy, LLC
(A Development Stage Company)

Notes to Financial Statements
--------------------------------------------------------------------------------

Note 3. Construction and Revolving Loan/Credit Agreements (Continued)

Bunge  caused its bank to issue a letter of credit in the amount equal to 76% of
the maximum  principal  amount of the Bridge Loan in favor of the Bridge  Lender
(the  "Bunge  LC"),  and ICM caused its  lender to  similarly  issue a letter of
credit in the amount equal to 24% of the maximum  principal amount of the Bridge
Loan in favor of the Bridge  Lender (the "ICM LC" and,  together  with the Bunge
LC, the "LCs").  Both LCs expire on March 16, 2009,  and the Bridge  Lender will
only draw  against  the LCs to the extent that the  Company  defaults  under the
Bridge Loan or if the Company has not repaid the Bridge Loan in full by March 1,
2009.  In the event the Bridge  Lender draws  against the LCs, the amounts drawn
will be in proportion to Bunge's and ICM's respective ownership of the Company's
Units which are not Series A--76% and 24%,  respectively.  As the Company repays
the principal of the Bridge Loan, the LCs' stated amounts will  automatically be
reduced in the same  proportion.  As of June 30, 2008,  there was an outstanding
principal and interest  balance of  approximately  $34,473,000  under the Bridge
Loan.

The Company entered into the Unit Issuance  Agreements with Bunge and ICM, which
govern the  Company's  repayment of Bunge and/or ICM, as the case may be, in the
event the LCs are drawn upon (see Note 2).

Note 4. Long-Term Debt

Long-term debt consists of the following as of June 30, 2008:

                                                                                   June 30, 2008
                                                                                   --------------
$200,000 Note payable to Iowa Department Economic Development ("IDED")        $          171,666
non-interest bearing monthly payments of $1,667 due through maturity date
of March 2012 on non-forgivable portion (A)

Bridge Loan payable to Commerce Bank, N.A.                                            34,473,176

Construction loan payable to Agstar Financial Services (PCA) bearing
interest at LIBOR plus 3.65% (6.11% at June 30, 2008).  See maturity
discussed in Note 3.                                                                  38,621,317
                                                                              -------------------
                                                                                      73,266,159
Less current maturities
                                                                                    (34,486,509)
                                                                              -------------------
                                                                              $       38,779,650
                                                                              ===================

     (A) This debt is comprised of two components under the Master Contract (the
     "Master Contract") dated November 21, 2006 and amended June 5, 2008 between
     the Company and the IDED. A $100,000 loan is non  interest-bearing  and due
     in monthly payments of $1,667 beginning April 2007, with a final payment of
     $1,667 due March 2012; and a $100,000 forgivable loan. Both notes under the
     Master Contract are  collateralized  by substantially  all of the Company's
     assets and subordinate to the above $126,000,000 financial institution debt
     and construction and revolving  loan/credit  agreements included in Note 3.
     The $100,000  forgivable  loan may be forgiven upon IDED's  confirmation of
     the creation and retention of qualifying  jobs as per the Master  Contract.
     If the Company does not meet the requirements of the Master  Contract,  the
     note is due on an agreed upon payment schedule.



                                       9`

---

`Southwest Iowa Renewable Energy, LLC
(A Development Stage Company)

Notes to Financial Statements
--------------------------------------------------------------------------------

Note 5. Related-Party Transactions

In September,  2005, the Company entered into an agreement that expired May 2007
(and was not  renewed)  with a  management  company  that  included a member and
director on the board of  directors,  for  project  development  services  for a
monthly  fee of  $10,000  per  month,  plus  actual  travel  and other  approved
expenses.  The  agreement  also  included  a fee of up to  $1,600,000  for a 100
million  gallon  per year  plant  that was due upon  financial  closing  for the
project.  No  expenses  were  incurred  in 2008 as the  agreement  had  expired.
Expenses  under this agreement  totaled  $1,610,719 and $1,642,370 for the three
and nine months ended June 30, 2007, respectively. Expenses under this agreement
for the period  from March 28,  2005 (date of  Inception)  to June 30, 2008 were
$1,842,492.

In September  2006,  the Company  entered into a  design-build  agreement with a
related  party,  ICM, for a lump-sum  contract price of  $118,000,000  (the "ICM
Contract").  Under the ICM  Contract,  the Company  was  required to make a down
payment of 10% of the original  contract price which  $2,000,000 was paid at the
delivery of the letter of intent, an additional  $2,000,000 was paid in November
2006 when the Company broke escrow and the  remaining  $7,800,000 of the 10% was
paid in January 2007.

Under the ICM Contract, monthly applications are submitted for work performed in
the previous period,  subject to retainage.  In April 2008, six change orders in
the amount of $29,247,000 were issued. As of June 30, 2008, the Company incurred
approximately   $118,052,000   of   construction   in  progress.   Approximately
$29,195,000  future commitment remains as of June 30, 2008, which is expected to
be paid in 2008.  There are  approximately  $5,589,717 in accounts payable under
the ICM Contract as of June 30, 2008.

The Company  entered into an  agreement  in October  2006 with a related  party,
Bunge, to purchase all of the distiller's  grains with soluble (DGS) produced by
the Company's ethanol plant (the "DGS  Agreement").  The Company agreed to pay a
purchase  price  subject to the sales price,  transportation  costs,  rail lease
charge and a fixed rate  marketing fee for the DGS  produced.  The DGS Agreement
commences when the Company begins producing DGS and continues for ten years when
it will  automatically  renew for successive  three-year  terms unless a 180-day
written  notice is given of either  party's  election  not to renew  before  the
expiration of the initial term or the then current  renewal term. The Company is
required  to pay a  minimum  annual  marketing  fee of  $150,000  under  the DGS
Agreement.  Beginning on the third  anniversary of the effective date of the DGS
Agreement and  thereafter,  the annual minimum amount and the purchase price may
be adjusted  based on terms within the contract.  Either party may terminate the
DGS Agreement based its specific provisions.

In October 2006,  the Company  entered into an agreement with a company in which
Bunge  holds a  membership  interest,  AGRI-Bunge,  LLC,  to  procure  all grain
required for the Company's  ethanol  plant.  The Company agreed to pay an agency
fee mutually agreed to by both parties for corn delivered by truck or rail, with
a minimum annual fee of $225,000. The agreement commences when the Company first
needs corn for  production.  It is  currently  anticipated  that this will occur
December 2008 and will continue for ten years when it will  automatically  renew
for  successive  three-year  terms unless a 180-day  written  notice is given of
either  party's  election not to renew before the expiration of the initial term
or the then current renewal term. Either party may terminate the agreement based
on specific guidelines in the agreement.


                                       10`

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`Southwest Iowa Renewable Energy, LLC
(A Development Stage Company)

Notes to Financial Statements
--------------------------------------------------------------------------------

Note 5. Related-Party Transactions (Continued)

On January  30,  2008,  the Company and Bunge  entered  into a Support  Services
Agreement  (the  "Services  Agreement"),  under  which  Bunge  agreed to provide
engineering  support on the  project,  provide  reports to Lender and assist the
Company with requests by the Agent. The Company will pay, in addition to Bunge's
out of pocket  expenses,  an hourly fee of $95 for such  services.  The Services
Agreement  terminates  upon the earlier of  completion  of the ethanol  plant or
December 31, 2008.  Bunge may terminate the Services  Agreement at any time, and
the Company may terminate  under  specified  circumstances.  Expenses of $83,400
have been paid under this agreement for the three and nine months ended June 30,
2008 and $83,400 for the period from March 28, 2005 (date of  inception) to June
30, 2008.

Note 6. Commitments

The total cost of the project,  including the  construction of the ethanol plant
and start-up expenses, is expected to be approximately $225,000,000. The Company
is funding the development of the ethanol plant by using the total equity raised
of  $75,654,000,  long term financing of  approximately  $126,000,000  under the
Credit  Agreement and bridge financing of  approximately  $36,000,000  under the
Bridge Loan. The Company intends to issue equity to pay off the Bridge Loan.

The Company also entered into various other contracts during 2006, 2007 and 2008
for the  construction  of the ethanol  plant,  office  building,  rail track and
acquisition  of  equipment  totaling  approximately  $35,712,000,  with a future
commitment of  approximately  $28,470,000 as of June 30, 2008, which is expected
to be paid in  2008.  Of this  total,  approximately  $522,952  is  included  in
accounts payable as of June 30, 2008.

In November 2006, the Company entered into an agreement with an unrelated entity
for  marketing,  selling and  distributing  all of the  ethanol  produced by the
Company.  The Company will pay a fee mutually agreed to by both parties for each
gallon of ethanol sold.  This agreement is effective  through  December 31, 2010
and will renew annually until terminated by 90 days' written notice.  As of June
30, 2008, the ethanol plant is not operational and no amounts are due under this
agreement.

The Company has entered  into a steam  contract  with an  unrelated  party dated
January 22, 2007, under which the vendor agreed to provide the steam required by
the  Company,  up to 475,000  pounds per hour.  The Company  agreed to pay a net
energy  rate for all steam  service  provided  under the  steam  contract  and a
monthly  demand charge for  condensate  not returned  (steam  delivered less the
condensation  returned).  The net energy  rate is set for first three years then
adjusted each year beginning on the third  anniversary  date. The steam contract
will  remain in effect  for ten years from the  earlier of the date the  Company
commences a continuous grind of corn for ethanol production, or January 1, 2009.

In October,  2007 the  Company  entered  into an  agreement  with an  investment
banking  firm, an unrelated  party,  to assist in obtaining  additional  equity.
While the Bridge Loan is not due until March 1, 2009,  the Company's  goal is to
raise  sufficient  equity  to  replace  the  Bridge  Loan as  soon as  possible.
Initially, the Company is seeking one or more institutional investors to provide
the  additional  equity.  The Company  will pay a monthly fee of $10,000 for the
services of the  investment  banking firm until the  agreement is  terminated by
both parties or the equity is secured.

In April, 2008 the Company entered into a Firm Throughput Service Agreement with
a natural gas  supplier,  an unrelated  party,  under which the vendor agreed to
provide the gas  required  by the  Company,  up to 900 Dth per day.  The Company
agreed to pay the maximum  reservation and commodity rates as provided under the
vendor's  FERC  Gas  Tariff  as  revised  from  time to  time,  as well as other
additional  charges.  The agreement  specifies an in-service  date of October 1,
2008, and the term of the agreement is seven years.



                                       11`

---

`Southwest Iowa Renewable Energy, LLC
(A Development Stage Company)

Notes to Financial Statements
--------------------------------------------------------------------------------

Note 6. Commitments (Continued)


In March, 2008, the Company entered into the Unit Issuance Agreements,  pursuant
to  which  the  Company  has  agreed  to pay  Bunge  and ICM  each a fee for the
issuances  of their  respective  LCs equal to 6% per annum of the  undrawn  face
amount  of their  respective  LCs for a total  annual  amount  of  approximately
$2,160,000.  For the three and nine  months  ended June 30,  2008,  the  Company
capitalized  $546,000  and  $690,000  of interest  related to the Unit  Issuance
Agreements. No payments have been made as of June 30, 2008.

In January,  2007, the Company  entered into an agreement  with Iowa  Interstate
Railroad,  LTD to provide the  transportation of the Company's  commodities from
Council  Bluffs,  Iowa  to an  agreed  upon  customer  location.  The  agreement
commences   on  the  date  that  the   contract   is  approved  by  the  Surface
Transportation  Board,  then it continues for five years and will  automatically
renew for additional one year periods unless cancelled by either party by giving
a minimum of 90 days written  notice prior to the  expiration  date. The Company
agreed to pay a mutually agreed upon rate per car.


                                       12`

---

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

Forward Looking Statements

     This  report on Form 10-Q by  Southwest  Iowa  Renewable  Energy,  LLC (the
"Company," "we" or "us") contains forward-looking statements that involve future
events,  our future  performance and our expected future operations and actions.
In some cases you can identify  forward-looking  statements  by the use of words
such as "may," "should,"  "anticipate,"  "believe,"  "expect," "plan," "future,"
"intend," "could," "estimate,"  "predict," "hope,"  "potential,"  "continue," or
the negative of these terms or other similar expressions.  These forward-looking
statements are only our predictions and involve numerous assumptions,  risks and
uncertainties.  Our actual results or actions may differ  materially  from these
forward-looking statements for many reasons, including the following factors:

         Overcapacity in the ethanol industry;
         Our ability to obtain any  additional  equity  financing  which may be
          required to complete plant  construction and commence  operations,  or
          our inability to fulfill our debt financing covenants;
         Changes in our business strategy,  capital improvements or development
          plans;
         Construction  delays and technical  difficulties in  constructing  the
          plant;
         Changes in the environmental  regulations that apply to our plant site
          and operations;
         Our ability to hire and retain key  employees for the operation of the
          plant;
         Changes in general  economic  conditions or the  occurrence of certain
          events  causing  an  economic  impact  in  the  agricultural,  oil  or
          automobile industries;
         Changes  in the  availability  and  price of  electricity,  steam  and
          natural gas;
         Changes in federal and/or state laws (including the elimination of any
          federal and/or state ethanol tax incentives);
         Changes and advances in ethanol production technology; and competition
          from alternative fuel additives.

     Our actual results or actions could and likely will differ  materially from
those anticipated in the forward-looking  statements for many reasons, including
the reasons  described in this  report.  We are not under any duty to update the
forward-looking  statements contained in this report. We cannot guarantee future
results, levels of activity,  performance or achievements. We caution you not to
put undue reliance on any forward-looking statements, which speak only as of the
date of this  report.  You  should  read  this  report  completely  and with the
understanding  that our actual future  results may be materially  different from
what we currently  expect. We qualify all of our  forward-looking  statements by
these cautionary statements.

Overview, Status and Recent Developments

     We are a development  stage Iowa limited liability company which was formed
on March 28, 2005 to develop,  construct,  own and operate a 110 million  gallon
dry mill corn-based  ethanol plant near Council Bluffs,  Iowa (the  "Facility").
Based upon  engineering  specifications  from ICM, our primary  constructor,  we
expect the Facility to process  approximately  39.3 million  bushels of corn per
year into 110 million  gallons of denatured fuel grade ethanol,  300,000 tons of
distillers' dry grains with solubles ("DDGS") and 50,000 tons of wet distillers'
grains with solubles ("WDGS," together with DDGS, "Distillers Grains"). The fuel
grade  ethanol  will  be  sold in  markets  throughout  the  United  States  and
Distillers   Grains   sold  in  markets   throughout   the  United   States  and
internationally.  To execute our business  plan, we raised  capital  through two
offerings--an  initial seed round in the fourth  quarter of 2005 and a secondary
round  in the  first  quarter  of  2006.  With the  proceeds  of our two  equity
offerings,  we began  construction  of our  Facility in  February  of 2007.  The
current status of the various components of the Facility was as follows:

         Grain handling: the MCC building is substantially complete;
         Storage tank progress: the piping and pumps are being installed;
         Process building: structural steel progress is 95% complete, piping is
          being installed, installation of heat exchangers, pumps and electrical
          cable tray work continue, and sheeting is being installed;
         North and South Rail Line:  the loop  tracts  are 70%  complete,  rail
          across  Pony Creek  Bridge is  completed,  and we  continue to install
          switches on the loop;


                                       13`

---

`    Wells:  wet weather  conditions  caused delay in this  process  during
          June, and step testing of the wells is nearly complete;
         Steam  Pipeline:  two  additional  foundations  will be  added to span
          easement of 42" force main and the pipe installers are on site welding
          the steam line;
         Energy center: the structural steel work is complete and conveyor work
          has begun;  ICM's dryer group is  mobilized on site;  centrifuges  and
          other equipment are being installed and sheeting will begin in August;
         Wet cake pads: the conveyor group is mobilized and the equipment is on
          site, completion is expected later this summer;
         Cooling  tower:  additional  progress in this area will  commence when
          connections to the process building are completed;
         Natural gas pipeline:  4" piping is on-site and  completion of the gas
          system is expected by October 1st, 2008;
         Scales:  construction of the scales is completed;  the scale house and
          probe building foundations are expected to be done in August;
         Administration  building:  the drywall work has been started,  and the
          roof completed;  windows were installed,  and we estimate occupancy in
          September, 2008;
         Site paving contract issued this month and paving began in July.

     On May 2, 2007, we entered into a $126,000,000 credit facility (as amended,
the "Credit Agreement") with AgStar Financial Services, PCA ("AgStar"), as agent
for a syndicate  group of lenders (the  "Lenders").  Effective March 7, 2008, we
amended the terms of our primary lending  agreements,  obtained a bridge loan in
the maximum  principal  amount of $36,000,000  (the "Bridge Loan") from Commerce
Bank, N.A. (the "Bridge Lender") and entered into  arrangements  with the Bridge
Lender and our key equity holders and operational partners,  ICM and Bunge North
America,  Inc. (a wholly owned subsidiary of Bunge Limited,  a  publicly-traded,
global agribusiness company) ("Bunge").  On March 7, 2008, we made the following
arrangements:

         We  obtained  the  Bridge  Loan in the  maximum  principal  amount  of
          $36,000,000,  which is secured by two letters of credit,  as described
          below. As of June 30, 2008, we have drawn $34,473,000 under the Bridge
          Loan for payment of construction in progress.

         Bunge  caused its bank to issue a letter of credit in the amount equal
          to 76% of the maximum  principal amount of the Bridge Loan in favor of
          the  Bridge  Lender  (the  "Bunge  LC"),  and ICM caused its lender to
          similarly  issue a letter of credit in the amount  equal to 24% of the
          maximum  principal  amount of the  Bridge  Loan in favor of the Bridge
          Lender (the "ICM LC" and, together with the Bunge LC, the "LCs"). Both
          LCs expire on March 16,  2009,  and the Bridge  Lender  will only draw
          against the LCs to the extent that we default under the Bridge Loan or
          if we have not repaid the Bridge Loan in full by March 1, 2009. In the
          event the Bridge  Lender draws against the LCs, the amounts drawn will
          be in  proportion  to Bunge's and ICM's  respective  ownership  of the
          Company's Units which are not Series A--76% and 24%, respectively.  As
          we repay the  principal  of the Bridge Loan,  the LCs' stated  amounts
          will automatically be reduced in the same proportion.

         We  entered  into a Series  C Unit  Issuance  Agreement  with ICM (the
          "Series C  Agreement")  and a Series E Unit  Issuance  Agreement  with
          Bunge (the "Series E Agreement", together with the Series C Agreement,
          the "Unit Issuance  Agreements") in connection  with their  respective
          issuances of the LCs. Under the Unit Issuance Agreements, we agreed to
          pay Bunge and ICM each a fee for the issuances of their respective LCs
          equal to 6% per annum of the undrawn  face amount of their  respective
          LCs. The Unit  Issuance  Agreements  provide that we will use our best
          efforts to raise funds through a subsequent private placement offering
          of Units (the  "Private  Placement"),  or such other form of equity or
          debt  financing as our Board of Directors  may deem  necessary,  in an
          amount  sufficient  to pay  off the  Bridge  Loan  in  full  prior  to
          maturity.  Although we anticipate that funds obtained from the Private
          Placement or such other equity or debt financing will enable us to pay
          off the Bridge Loan in full prior to  maturity,  in the event that the
          LCs are  drawn  upon as  discussed  above  or if Bunge or ICM make any
          payment to the Bridge Lender that reduces amounts owed by us under the
          Bridge  Loan  (each,  a  "Bridge  Loan  Payment"),  the Unit  Issuance
          Agreements  provide that we will  immediately  reimburse  Bunge and/or
          ICM, as  applicable,  for the amount of such  Bridge  Loan  Payment by
          issuing Units to Bunge and ICM, as further described below.


                                       14`

---

`    Under the Series C Agreement,  if ICM makes a Bridge Loan Payment,  we
          will  immediately  issue  Series C Units to ICM based on a Unit  price
          that is equal to the  lesser of $3,000 or one half (1/2) of the lowest
          purchase  price paid by any party for a Unit who  acquired (or who has
          entered into any  agreement,  instrument  or document to acquire) such
          Unit as part of the Private  Placement  after the date of the Series C
          Agreement  but prior to the date of any Bridge  Loan  Payment  made by
          ICM. The Series C Agreement  further  provides  that ICM will have the
          right to purchase  its pro rata share of any Units issued by us at any
          time after the date of the Series C Agreement.

         Under the Series E Agreement, if Bunge makes a Bridge Loan Payment, we
          will  immediately  issue Series E Units to Bunge based on a Unit price
          that is equal to the  lesser of $3,000 or one half (1/2) of the lowest
          purchase  price paid by any party for a Unit who  acquired (or who has
          entered into any  agreement,  instrument  or document to acquire) such
          Unit as part of the Private  Placement  after the date of the Series E
          Agreement  but prior to the date of any Bridge  Loan  Payment  made by
          Bunge.  The Series E Agreement  further  provides that Bunge will have
          the right to purchase  its pro rata share of any Units issued by us at
          any time after the date of the Series E Agreement.

     We have retained an  investment  banking firm to assist us in obtaining the
additional  equity to replace the Bridge Loan.  While the Bridge Loan is not due
until  March 1, 2009,  our goal is to raise  sufficient  equity to  replace  the
Bridge  Loan  as  soon  as  possible.  Initially,  we are  seeking  one or  more
institutional  investors to provide the  additional  equity.  The Board may also
determine  to make an  offering  to  existing  Members  and other  investors  to
compliment the additional institutional equity.

Results of Operations

     For the three and nine-month  period ended June 30, 2008, we incurred a net
loss of approximately ($1,295,000) and ($2,442,000), respectively. For the three
and  nine-month  period ended June 30, 2007, we had a net loss of  approximately
($675,000)  and net  income  of  $664,000,  respectively.  We have  incurred  an
accumulated net loss of approximately ($2,141,000) for the period March 28, 2005
(date of  inception)  through  June 30,  2008.  These  losses were  incurred for
general and administrative  expenses relating to organization and development as
we continue to construct our plant.  Net income resulted from interest income on
the equity financing before full construction of the plant was underway.

Liquidity and Capital Resources

     We  intend  to  rely  on our  current  equity  and  available  debt to fund
completion of the project,  cover start-up costs and purchase inventory prior to
our  operational  date. We will seek to issue equity to replace the Bridge Loan,
as described above. Under the terms of the amended Credit Agreement, our Lenders
have agreed to fund the  facility  and we have drawn on the  Construction  Loan.
Once operational,  we anticipate that cash flow from operations will allow us to
operate at a profit and will provide the  necessary  cash to make our  principal
debt and  interest  payments.  However,  to the extent we are not able to access
additional working capital, our ability to adequately hedge against market risks
will be  restricted.  Market trends and  governmental  regulations  could have a
significant  impact on our ability to remain  profitable and provide enough cash
flow to make our debt and interest  payments.  As of June 30, 2008 we have drawn
approximately   $38,621,000   under  the  Credit  Agreement  and   approximately
$34,473,000 of principal and interest under the Bridge Loan.

     The  current  tightening  of the  credit  markets  and the  current  market
conditions  for both corn and  ethanol  could  materially  impede our ability to
obtain  additional  funding  if we need to raise  additional  equity  or  borrow
additional funds to make improvements to the Facility.

     We expect our future  cost of goods sold will  consist  primarily  of costs
relating to the corn supply  necessary to produce ethanol and Distillers  Grains
for sale.  Corn prices have  increased  sharply  since August 2006 and we expect
corn prices to remain at historical  high price levels well into 2008.  Although
we do not expect to begin  operations  until December,  2008, we expect that the
demand  for corn will  continue  to not only  increase  prices,  but also  cause
continuing  volatility on those prices,  which may significantly impact our cost
of goods sold.


                                       15`

---

`Once  operational,  we will be  dependent  on our supply of corn to produce
ethanol  and its  co-products  at our  Facility.  We expect the price of corn to
remain  above  historical  price  levels and we will have to compete  with other
ethanol  plants for our corn  origination.  Generally,  higher  corn prices will
produce  lower profit  margins.  Grain prices are  primarily  dependent on world
feedstuffs supply and demand and on U.S. and global corn crop production,  which
can be volatile as a result of a number of factors,  the most important of which
are  weather,  current  and  anticipated  stocks and prices,  export  prices and
supports and the government's current and anticipated agricultural policy.

     The price at which we will purchase  corn will depend on prevailing  market
prices.  A shortage may develop,  particularly if there are other ethanol plants
competing for corn, an extended drought or other production problems. Historical
grain  pricing  information  indicates  that the price of grain  has  fluctuated
significantly in the past and may fluctuate significantly in the future. Because
the market price of ethanol is not related to grain  prices,  ethanol  producers
are  generally  not  able to  compensate  for  increases  in the  cost of  grain
feedstock  through  adjustments  in  prices  charged  for  their  ethanol.   We,
therefore, anticipate that our plant's profitability will be negatively impacted
during periods of high corn prices.

     There has been an  increase  in the  number of  claims  against  the use of
ethanol as an alternative  energy source.  Many of such claims have drawn a link
between  recently  increasing  global food prices and the use of corn to produce
ethanol.  Others claim that the production of ethanol  requires too much energy.
Such  claims  have  led  some,  including  members  of  Congress,  to  urge  the
modification of current government policies which affect the production and sale
of ethanol in the  United  States,  such as the  Volumetric  Ethanol  Excise Tax
Credit,  the Renewable Fuels Standard  ("RFS") and the Energy  Independence  and
Security Act of 2007. Similarly,  several states which currently have laws which
affect the  production  and sale of ethanol,  such as mandated usage of ethanol,
have proposed to modify or eliminate such mandates. The governor of the state of
Texas  recently  submitted  a  petition  to  the  United  States   Environmental
Protection  Agency  ("EPA")  requesting a waiver of 50 percent of the nationwide
RFS mandate for the  production of ethanol  derived from grain,  citing  adverse
economic impact due to higher corn prices in Texas. The administrator of the EPA
can waive the RFS if the RFS would severely harm the economy or environment of a
state,  region  or the  United  States  or if there is an  inadequate  supply of
renewable fuel.  While the EPA has denied Texas'  request,  i the EPA grants any
other  waiver of the RFS with respect to ethanol  derived  from grain,  it could
have a material adverse effect on our financial performance once operational. To
the extent that state or federal laws are  modified,  the demand for ethanol may
be reduced,  which could negatively and materially affect our ability to operate
profitably once we commence operations.

     Cash (used in) / provided by  operations  for the  nine-month  period ended
June 30, 2008 and June 30,  2007,  and from March 28,  2005 (date of  inception)
through   June  30,  2008,   was   ($1,860,658),   $464,224  and   ($1,543,140),
respectively.   Cash  has  been   used   primarily   for   pre-operational   and
administrative  expenses. For the nine month period ended June 30, 2008 and June
30, 2007, and from March 28, 2005 (date of inception) through June 30, 2008, net
cash  used  in  investing   activities  was  ($69,654,333),   ($67,823,215)  and
($143,373,759) respectively, primarily related to the construction of our plant.

     For the nine month period  ended June 30, 2008 and June 30, 2007,  and from
March 28, 2005 (date of  inception)  through June 30, 2008,  cash  provided from
financing   activities   was   $70,635,751,    $68,899,892   and   $145,780,599,
respectively.   This  cash  was  generated   through  our  equity  financing  of
$75,654,000,   the  Bridge  Loan  of  $34,100,000  and   $38,621,000   from  our
construction loan.

     Sources of Funds

     The total project cost to construct our Facility and commence operations is
currently  estimated  to be  approximately  $225,000,000,  assuming  no  unknown
material  changes  are  required.  To  date,  we have  planned  to  finance  the
construction  of the Facility with a combination of equity and debt capital.  We
initially  raised  equity  from our  seed  capital  investors  and  completed  a
secondary  private  offering  in  March  2006.  We  intend  to draw on our  debt
financing under the terms of the Credit  Agreement,  as amended,  and the Bridge
Loan.  We have also received  grant income from the United States  Department of
Agriculture ("USDA") and a loan from the IDED. The following schedule sets forth
the sources of funds from our equity  offering  proceeds and our debt  financing
proceeds and grants:


                                       16`

---

`Source of Funds                                              Amount            Percent of Total
     Equity:
         Member Equity (Seed Capital Offerings)          $      1,650,000            0.74%
         Member Equity (Secondary Offering)              $     74,004,000           32.94%
     Other:
         Interest, Grant and Other Income                $      3,881,389            1.72%
     Total Equity and Other                              $     79,535,389           35.40%
     Debt:
         Term Debt                                       $    111,000,000           49.40%
         Bridge Loan                                     $     34,100,000           15.20%
     Total Debt                                          $    145,100,000           64.60%
-------------------------------------------------------------------------------------------------
Total                                                    $    224,635,389             100%

     Other Income

     In addition to our equity  financing,  the Credit  Agreement and the Bridge
Loan, we have earned approximately $3,372,000 of interest income, and rental and
grant income of approximately $381,000, through June 30, 2008.

     Debt Financing

     In May 2007, we closed on our debt  financing  with AgStar as agent for the
Lenders. Our debt financing is principally governed by the Credit Agreement with
the Lenders,  along with other  agreements,  which were amended March 7, 2008 in
connection  with  the  Bridge  Loan.  The  Credit   Agreement   provides  for  a
$111,000,000  construction  loan  which is  convertible  into a term  loan  (the
"Construction Loan"), at a variable interest rate of LIBOR (the London Interbank
Offered  Rate) plus 3.65%.  The Credit  Agreement  requires that we make monthly
principal  payments  commencing seven months following the date the Construction
Loan converts to a term loan (60 days after  completion of  construction  of the
Facility) (the "Conversion  Date"). On the Conversion Date, the Credit Agreement
provides that the Construction  Loan will be converted into a term loan of up to
$101,000,000  (the "Term Loan") and a term  revolving  loan of up to $10,000,000
(the "Term Revolver"); and up to 50% of the outstanding Construction Loan can be
converted to a fixed rate term loan ("Fixed Rate Loan"). In addition, the Credit
Agreement  provides for a revolving line of credit of approximately  $15,000,000
(the "Revolving Line of Credit").  The Revolver provides for a variable interest
rate of LIBOR plus 3.45%. Finally, the Credit Facility provides for a loan up to
$1,000,000 on a revolving  basis (the  "Swingline  Revolver").  Under the Credit
Agreement, we are to provide no less than 40% of the cost of construction.

     In addition to all other payments due under the Credit  Agreement,  we also
agreed  to pay,  beginning  at the end of the  third  fiscal  quarter  after the
Conversion  Date, the amount equal to 65% of our Excess Cash Flow (as defined in
the Credit  Agreement),  up to a total of $4,000,000 per year,  and  $16,000,000
over the term of the  Credit  Agreement.  Such  payment  will be  applied to the
outstanding principal of the Term Loan (once funded), and will not be subject to
the prepayment fee. The prepayment fee is due if the  Construction  Loan or Term
Loan is paid in full within 24 months after the Conversion  Date. We also agreed
to pay to each  Lender,  annually,  a letter  of  credit  fee equal to 150 basis
points of each  Lender's  maximum  amount  available  to us under its  letter of
credit.  We will pay a commitment  fee of 35 basis points per year of the unused
portion  of  each  Lender's  Revolving  Commitment,  as  defined  in the  Credit
Agreement,  and payable in arrears in quarterly  installments.  The repayment of
any  loan  will  be  made  to the  Lenders  pro  rata  based  on  each  Lender's
contribution to the total outstanding principal of that loan.

     Governmental Programs

      IDED: We entered into a Master  Contract (the "IDED  Contract")  with the
IDED,  effective  November 21, 2006 and amended June 5, 2008, which provides for
financial  assistance  from IDED. The awards granted under the IDED Contract can
be reduced or terminated if there is a change in the IDED revenues  appropriated
to us under the Master  Contract or for any other reason beyond IDED's  control.
All amounts of financing received from IDED will be spent on the construction of
our  Facility.  As part of the  Master  Contract,  we  granted  to IDED a second
position


                                       17`

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`security  interest in all of our assets,  and a first position security interest
in our  rolling  stock  valued at  $200,000.  We covenant  to (i)  maintain  our
business and Facility in Iowa, (ii) create certain numbers of jobs, based on the
job category (the "Job  Requirement"),  (iii)  provide  certain  benefits,  (iv)
complete the Facility and comply with  performance  requirements  regarding  its
completion,  (v) maintain our properties in a condition of good repair, (vi) pay
all  taxes,  assessments  and fees,  and (vii)  insure  our risks as any  person
similarly  situated  would.  We agree to provide  reports  including  a mid-year
status report, an end-of-year  status report,  an end of project report,  and an
end of job maintenance period report. Additionally,  we agreed to not be a party
to any merger or  consolidation,  we agree to not sell,  transfer,  or lease any
property  covered by a security  interest,  and we agreed to not form or acquire
any  subsidiaries  or transfer any assets pledged as security to any subsidiary.
The  Master  Contract  contains  standard  events of  default,  and in  addition
declares an event of default  when we are  subject to any  judgment in excess of
$100,000, in the aggregate.

     The IDED  Contract  contains  a  VAAPFAP  Funding  Agreement  ("VA  Funding
Agreement"),  which provides us with an interest-free loan of $100,000,  payable
over 60 months,  and a $100,000  forgivable  loan,  payable over 36 months.  The
forgivable loan is only due if IDED determines that we failed to comply with the
terms of the VA Funding  Agreement  and the IDED  Contract.  In  addition to the
requirements for funding under the IDED Contract,  we must also provide evidence
that we have access to steam energy from  MidAmerica  Energy's  plant to replace
natural gas before we will receive funds under the VA Funding Agreement.  In the
event  we  fail to meet  our Job  Requirement,  IDED  can  either  require  full
repayment of the loan or  repayment on a pro rata basis.  If we fail to meet our
Job Requirement,  the forgivable loan will be forgiven on a pro rata basis, with
the remaining  balance being  amortized over a two year period and carrying a 6%
interest rate, due from the first day of disbursement  of the shortfall  amount.
We have signed two  promissory  notes,  each for  $100,000,  covering  the loans
provided for under the VA Funding Agreement. The VA Funding Agreement terminates
upon (i) IDED  determining we have fully met all of the  requirements  of the VA
Funding Agreement,  including repayment, (ii) an event of default, (iii) lack of
any  distribution  under the VA Funding  Agreement within 24 months of the award
date, or (iv) mutual agreement.

     The IDED Contract also contains a High Quality Job Creation Program Funding
Agreement ("HQJCP Funding Agreement"). Under the HQJCP Funding Agreement, we are
allowed to claim an  investment  tax credit  ("Tax  Credit") of up to 5% (with a
maximum of $6,922,308) of our qualifying  expenses  directly related to new jobs
created by the start-up, location,  expansion, or modernization of our Facility,
we are  eligible  for a  refund  of  sales,  service,  and use  taxes  we pay to
contractors  or  subcontractors,  and  we are  eligible  for a  value-added  tax
exemption. Under the HQJCP Funding Agreement, we must create 45 new high quality
jobs.  These new jobs must be created  within five years of Facility  completion
and must be maintained for at least two years thereafter.  We also agree to make
a qualifying  investment of $141,331,160 toward the purchase and construction of
our  Facility.  Additionally,  we must (i) offer our new  employees a pension or
profit  sharing  plan,  (ii)  create  a high  value-added  good  or  service  in
"Value-Added  Agriculture"  (one of Iowa's  target  industries),  (iii)  provide
employees 90% of the cost of medical and dental insurance,  and (iv) have active
productivity  and safety  programs.  If we fail to create the number of required
jobs,  then we will be  required  to repay  these tax  benefits  pro rata to the
percent of jobs we failed to create  over the number of jobs we are  required to
create. If we fail to meet the four  requirements  above for two years in a row,
then we forfeit all tax benefits we receive under the HQJCP  Funding  Agreement.
If we sell or dispose of any building,  land, or structure that has received tax
incentives  under this  program,  then our tax  liability  will be  increased as
outlined in the HQJCP  Funding  Agreement.  In the event we layoff  employees or
close our Facility  prior to  receiving  any tax  benefits,  the benefits may be
reduced or terminated by IDED. The HQJCP Funding  Agreement  terminates upon (i)
IDED  determining we have fully met all of the requirements of the HQJCP Funding
Agreement,  including  repayment,  (ii) an event of  default,  (iii) lack of any
distribution  under the HQJCP  Funding  Agreement  within 24 months of the award
date, or (iv) mutual agreement.

      USDA:  We have entered into a  Value-Added  Agricultural  Product  Market
Development (VAPG) Grant Agreement ("Grant Agreement") with the United States of
America,  dated  November  3,  2006,  under  which we  receive  a grant of up to
$300,000 for payment of (i)  administrative  staff salaries during  construction
and start-up,  (ii) the rental of temporary  office space,  and (iii)  permanent
staff  salaries for three  months.  As a condition to  receiving  the grant,  we
agreed to contribute at least  $300,000 of our own money to be spent at an equal
or greater  rate than the Grant  Agreement  funds.  We also agree to  maintain a
financial  management  system and receive  payment in  accordance  with  federal
regulations.  Additionally,  we agreed to comply with certain bonding  coverage,
audit and  reporting  obligations.  Finally,  we agreed to comply  with  federal
regulations concerning property, procurement and records access.


                                       18`

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`Uses of Funds

The  following  table  describes  the  estimated  use of our  offering  and debt
financing  proceeds.  The figures  are  estimates  only,  and the actual uses of
proceeds may vary significantly from the descriptions given below.

Estimated Uses of Funds                                             Amount            Percent of Total
Plant Construction                                              $    118,000,000              52.5  %
Other Construction                                              $     66,900,394              29.8  %
Land and Site Development                                       $     10,778,614               4.8  %
Site Utilities, Fire Protection and Water Supply                $      3,893,788               1.7  %
Rolling Stock                                                   $      2,000,000               0.9  %
Administration Building, Computer Systems and Furnishings       $      1,040,000               0.5  %
Rail line                                                       $     12,984,509               5.8  %
Construction Insurance                                          $        400,000               0.2  %
Equity and Debt Financing Expenses+                             $      1,414,000               0.6  %
Organizational                                                  $      5,424,414               2.4  %
Start-Up                                                        $      1,799,670               0.8  %
--------------------------------------------------------------------------------------------------------
Total                                                           $    224,635,389               100 %

+ Does not include  additional  expenses we may incur to raise additional equity
as discussed elsewhere in this report.

     The ICM  Contract  provides  for a fixed fee of  $118,000,000  to build the
primary  portions of our Facility.  In April 2008, we executed six change orders
under the ICM Contract in the amount of $29,247,000.  These change orders change
were for items outside of the scope of the ICM Contract and therefore  were time
and material based items instead of fixed price.  Through June 30, 2008, we have
paid ICM $107,384,000 for construction services under the ICM Contract,  leaving
$39,863,000 of future  commitment,  which we expect to pay in 2008. The Standard
Form  of  Design-Build  Agreement  and  General  Conditions  Between  Owner  and
Contractor  dated as of December  18, 2006  between us and Todd & Sargent,  Inc.
(the "TS Contract") provides for a fee, subject to change orders, of $9,661,000
to design and construct a 1,000,000  bushel grain receiving and storage facility
and Distillers  Grain storage  facility.  As of June 30, 2008, the work provided
for under the TS Contract  has been  substantially  completed.  Through June 30,
2008,  we have  paid TS  $9,561,000,  leaving a balance  of  $100,000  in future
commitments.  Additionally,  we have  agreed to pay  $6,082,000  for  excavation
services.  Through June 30, 2008, we have paid  $6,045,000  under the excavation
contract, leaving $37,000 of future commitment.

Application of Critical Accounting Estimates

     Management  uses  estimates  and  assumptions  in preparing  our  financial
statements in accordance with accounting  principles  generally  accepted in the
United States.  These estimates and assumptions  affect the reported  amounts of
assets and liabilities, the disclosure of contingent assets and liabilities, and
the  reported  revenues  and  expenses.  We do  not  believe  that  any  of  the
significant  accounting  policies  described  in  the  notes  to  the  financial
statements is critical at this time; however we expect to continue to review our
accounting  policies as we commence  operation of our ethanol  plant in order to
determine if any of these accounting policies are critical.

Off-Balance Sheet Arrangements

     We do  not  have  any  off-balance  sheet  arrangements  that  have  or are
reasonably   likely  to  have  a  current  or  future  material  effect  on  our
consolidated financial condition, results of operations or liquidity.

Recent Accounting Pronouncements

     In March 2008,  the Financial  Accounting  Standards  Board issued SFAS No.
161, "Disclosures about Derivative  Instruments and Hedging Activities." The new
standard is intended to improve financial reporting about derivative


                                       19`

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`instruments and hedging activities by requiring  enhanced  disclosures to enable
investors to better understand their effects on an entity's financial  position,
financial performance,  and cash flows. SFAS No. 161 achieves these improvements
by requiring  disclosure of the fair values of derivative  instruments and their
gains and losses in a tabular format. It also provides more information about an
entity's  liquidity by requiring  disclosure  of  derivative  features  that are
credit risk related. Finally, it requires  cross-referencing within footnotes to
enable  financial   statement  users  to  locate  important   information  about
derivative  instruments.  SFAS No. 161 is  effective  for  financial  statements
issued for fiscal years and interim  periods  beginning after November 15, 2008,
with early application  encouraged.  We are currently evaluating the impact that
this statement will have on our financial statements.

Item 4T. Controls and Procedures.

     Our management,  including our President and Chief  Executive  Officer (our
principal executive officer), Mark Drake, along with our Chief Financial Officer
(our principal financial officer), Cindy Patterson,  have reviewed and evaluated
the effectiveness of our disclosure  controls and procedures (as defined in Rule
13a-15 under the under the Securities  Exchange Act of 1934, as amended),  as of
June 30, 2008.  Based upon this review and  evaluation,  these officers  believe
that our disclosure  controls and procedures are presently effective in ensuring
that material information related to us is recorded,  processed,  summarized and
reported  within  the  time  periods  required  by the  forms  and  rules of the
Securities and Exchange Commission.

Our  management,  including  our principal  executive  officer and our principal
financial  officer,  have  reviewed  and  evaluated  any changes in our internal
control over financial reporting that occurred as of June 30, 2008 and there has
been  no  change  that  has  materially  affected  or is  reasonably  likely  to
materially affect our internal control over financial reporting.

                                     PART II

Item 1.  Legal Proceedings.

     None.

Item 1A.  Risk Factors.

     Not Applicable.

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

     None.

Item 3.  Defaults Upon Senior Securities.

     None.

Item 4.  Submission of Matters to a Vote of Security Holders.

     We held our annual Members' meeting on April 3, 2008, at which director Ted
Bauer was re-elected.  The terms of directors Hubert Houser, Karol King, Michael
Guttau,  Bailey  Ragan,  Michael  Scharf and Greg  Krissek  continued  after the
meeting.  At the meeting,  Mr. Bauer received 2,825 votes for  re-election,  166
votes against/withheld, and there were no abstentions.

Item 5.  Other Information.

     None.

Item 6.  Exhibits.


                                       20`

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`3(i) Articles of Organization, as filed with the Iowa Secretary of State on
          March  28,  2005   (incorporated  by  reference  to  Exhibit  3(i)  of
          Registration  Statement on Form 10 filed by  Registrant on January 28,
          2008).
     3(ii) Second Amended and Restated  Operating  Agreement dated March 7, 2008
          (incorporated  by  reference  to Exhibit  4(i) of  Amendment  No. 1 to
          Registration  Statement  on Form 10 filed by  Registrant  on March 21,
          2008).
     31.1 Rule 13a-14(a)/15d-14(a) Certification (pursuant to Section 302 of the
          Sarbanes-Oxley  Act  of  2002)  executed  by the  Principal  Executive
          Officer.
     31.2 Rule  15d-14(a)   Certification   (pursuant  to  Section  302  of  the
          Sarbanes-Oxley  Act  of  2002)  executed  by the  Principal  Financial
          Officer.
     32.1 Rule  15d-14(b)   Certifications  (pursuant  to  Section  906  of  the
          Sarbanes-Oxley  Act  of  2002)  executed  by the  Principal  Executive
          Officer.
     32.2 Rule  15d-14(b)   Certifications  (pursuant  to  Section  906  of  the
          Sarbanes-Oxley  Act  of  2002)  executed  by the  Principal  Financial
          Officer.


                                       21`

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`SIGNATURES

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

                                         SOUTHWEST IOWA RENEWABLE ENERGY, LLC



Date: August 14, 2008                    /s/ Mark Drake
                                         ---------------------------------------
                                         Mark Drake, President and
                                         Chief Executive Officer


Date: August 14, 2008                    /s/ Cindy Patterson
                                         ---------------------------------------
                                         Chief Financial Officer


                                       22`