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EXHIBIT  10.40
 
  CONFIRMATION
 To:
    
    Red Trail Energy, LLCP.O. Box 11Richardton, ND 58652Attn:
    
    Mark Klimpel/DeEll HoffFax:
    
    701-974-3309From:
    
    First National Bank of OmahaDate:
    
    11th December, 2007Our Ref:
    
    22173




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Red Trail Energy, LLCOur ref: 22173
    
    (LOGO)
 Notional Amount:
    
    For each Calculation Period, the amount listed under the heading Notional Amount (USD) in Schedule A, attached.Trade Date:
    
    11th December, 2007Effective Date:
    
    13th December, 2007Termination Date:
    
    16th April, 2012Fixed
Amounts:Fixed Rate Payer:
    
    Red Trail Energy, LLCFixed Rate Payer Payment Dates:
    
    Commencing the 16th day of January,
2008 and quarterly thereafter on the 16th
calendar day of April, July, October,
and January up to and including the
Temination Date, subject to adjustment in
accordance with Following Business Day
Convention.Period End Dates:
    
    The 16th calendar day of April, July,
October, and January commencing January,
2008 and ending on the Termination Date.
No Adjustment.Fixed Rate:
    
    7.69500%Fixed Rate Day Count Fraction:
    
    Act/360Floating
Amounts:Floating Rate Payer:
    
    First National Bank of OmahaFloating Rate Payer Payment
Dates:
    
    Commencing the 16th day of January, 2008
and quarterly thereafter on the 16th
calendar day of April, July, October,
and January up to and including the
Temination Date, subject to adjustment
in accordance with Following Business
Day Convention.Period End Dates:
    
    The 16th calendar day of April, July,
October, and January commencing January,
2008 and ending on the Termination Date.
No Adjustment.Floating Rate for Initial 
Calculation Period:
    
    8.51125% inclusive of SpreadFloating Rate Option:
    
    USD-LIBOR-BBA




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Red Trail Energy, LLCOur ref: 22173
    
    (LOGO)
 Designated Maturity:
    
    3 monthsSpread:
    
    3,40000%Floating Rate Day: Count
Fraction:
    
    Act/360Reset Dates:
    
    The first day of each Floating Rate
Payer Calculation Period.Calculation Agent:
    
    First National Bank of OmahaBusiness Days:
    
    New York, LondonOther Terms and Conditions:
    
    NonePayment Method:
    
    ACCT#110193357
  Regards,First National Bank of OmahaBy:Name:
 Accepted and confirmed as
of the Trade DateRed Trail Energy, LLC/s/
Mark E. Klimpel, CFO 12-12-07Name: Mark E. Klimpel/s/
Mike Appert, Chairman 12-12-07Name: Mike Appert




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Red Trail Energy, LLCOur ref: 22173
    
    (LOGO)
 Designated Maturity:
    
    3 monthsSpread:
    
    3.40000%Floating Rate Day:
Count Fraction:
    
    Act/360Reset Dates:
    
    The first day of each Floating Rate Payer Calculation Period.Calculation Agent:
    
    First National Bank of OmahaBusiness Days:
    
    New York, LondonOther Terms
and Conditions:
    
    NonePayment Method:
    
    ACCT#I10193357
  Regards,First National Bank of OmahaBy:
    
    /s/ MARK A. POTTSName:
    
    MARK A. POTTS
 Accepted and confirmed
as of the Trade DateRed Trail Energy, LLCName:Name:




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Red Trail Energy, LLCOur ref: 22173
    
    (LOGO)
 Schedule A
 Period Start
    
    Period End
    
    Notional Amount (USD)
    
    Notional Amortization13-Dec-07
    
    16-Jan-08
    
    10,000,000.00
    
    285,183.8316-Jan-08
    
    16-Apr-08
    
    9,714,816.17
    
    182,995.8616-Apr-08
    
    16-Jul-08
    
    9,531,820.31
    
    186,511.4116-Jul-08
    
    16-Oct-08
    
    9,345,308.90
    
    188,121.6016-Oct-08
    
    16-Jan-09
    
    9,157,187.30
    
    191,775.34l6-Jan-09
    
    16-Apr-09
    
    8,965,411.96
    
    199,285.4416-Apr-09
    
    16-Jul-09
    
    8,766,126.52
    
    201,221.2416-Jul-09
    
    16-Oct-09
    
    8,564,905.28
    
    203,278.7816-Oct-09
    
    16-Jan-10
    
    8,361,626.50
    
    207,226.9016-Jan-10
    
    16-Apr-10
    
    8,154,399.60
    
    214,694.6816-Apr-10
    
    16-Jul-10
    
    7,939,704.92
    
    2! 7,097.7216-Jul-10
    
    16-Oct-10
    
    7,722,607.20
    
    219,638.0816-Oct-10
    
    16-Jan-11
    
    7,502,969.12
    
    223,903.9416-Jan- 11
    
    16-Apr- 11
    
    7,279,065.18
    
    231,326.0316-Apr-11
    
    16-Jul-11
    
    7,047,739.15
    
    234,233.3716-Jul-11
    
    16-Oct-11
    
    6,813,505.78
    
    237,294.8516-Oct-l1
    
    16-Jan-12
    
    6,576,210.93
    
    241,903.6416-Jan-12
    
    16-Apr-12
    
    6,334,307.29
    
    6,334,307.29