##### Table of Contents



UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
 Washington, D.C. 20549
 FORM 10-K
 þ
    
    Annual report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934.
 For the fiscal year ended December 31, 2010.
 OR
 o
    
    Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934.
 For the transition period from  to .
 COMMISSION FILE NUMBER 00051965
 WESTERN IOWA ENERGY, LLC
  Iowa
    
    41-2143913(State or other jurisdiction of
    
    (I.R.S. Employer Identification No.)incorporation or organization)1220 S. Center Street, P.O. Box 399Wall Lake, Iowa
    
    51466(Address of principal executive offices)
    
    (Zip Code)
 (712) 664-2173
  None
 Limited Liability Company Membership Units
 o Yes þ No
 o þ
 Note
 þ o
 o o
 o
  Large Accelerated Filer o
    
    Accelerated Filer o
    
    Non-Accelerated Filer þ
    
    Smaller Reporting Company o
 o þ




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##### 



INDEX
 PART I
    
    
    4Item 1. Business
    
    
    4Item 1A. Risk Factors
    
    
    18Item 1B. Unresolved Staff Comments
    
    
    27Item 2. Properties
    
    
    27Item 3. Legal Proceedings
    
    
    27Item 4. (Removed and Reserved)
    
    
    28PART II
    
    
    28Item 5. Market for Registrants Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities
    
    
    28Item 6. Selected Financial Data
    
    
    31Item 7. Managements Discussion and Analysis of Financial Condition and Results of Operations
    
    
    31Item 7A. Quantitative and Qualitative Disclosures About Market Risk
    
    
    41Item 8. Financial Statements and Supplementary Data
    
    
    43Item 9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosure
    
    
    59Item 9A. Controls and Procedures
    
    
    59Item 9B. Other Information
    
    
    60PART III
    
    
    60Item 10. Directors, Executive Officers and Corporate Governance
    
    
    60Item 11. Executive Compensation
    
    
    60Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters
    
    
    60Item 13. Certain Relationships and Related Transactions, and Director Independence
    
    
    60Item 14. Principal Accounting Fees and Services
    
    
    60PART IV
    
    
    60Item 15. Exhibits, Financial Statement Schedules
    
    
    60Exhibit 31.1Exhibit 31.2Exhibit 32.1Exhibit 32.2
   2




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##### Table of Contents



CAUTIONARY STATEMENTS REGARDING FORWARD LOOKING STATEMENTS
  
    
    Changes in federal, state, or local incentives for biodiesel production, including
without limitation the federal biodiesel blenders tax credit;
 
    
    The availability and adequacy of our cash flow to meet our requirements;
 
    
    Changes to the rules related to the Renewable Fuels Standard and the value of
renewable identification numbers (RINs);
 
    
    Competition with other manufacturers in the biodiesel industry;
 
    
    Results of our hedging strategies;
 
    
    Changes in interest rates and the availability of credit to support capital
improvements, development, expansion, and operations;
 
    
    Changes in the amounts available under our credit facilities with Farm Credit;
 
    
    Our ability to keep up with the latest technology for the production of biodiesel;
 
    
    Decrease in the demand for biodiesel;
 
    
    Changes in plant production capacity or technical difficulties in operating the
plant;
 
    
    Actual biodiesel and co-product production varying from expectations;
 
    
    Availability and cost of products and raw materials, particularly soybean oil and
animal fats;
 
    
    Changes in the price and market for biodiesel and its co-products;
 
    
    Our ability to market and our reliance on ADM to market our products;
 
    
    Fluctuations in petroleum prices;
 
    
    Our ability to procure and our reliance on ADM to procure feedstock for our plant;
 
    
    Competition from alternative fuels and alternative fuel additives;
 
    
    Changes in our business strategy, capital improvement, or development plans;
 
    
    Consequences of the domestic and global economic downturn and ongoing financial
crisis;
 
    
    Our ability to generate free cash flow to invest in our business and service our
debt;
 
    
    Changes in general economic conditions or the occurrence of certain events causing
an economic impact in the agriculture, oil, or transportation industries;
 
    
    Changes in the environmental regulations or in our ability to comply with the
environmental regulations that apply to our plant operations;
 
    
    Changes and advances in biodiesel production technology;
 
    
    Our ability to export our biodiesel;
 
    
    Overcapacity within the biodiesel industry resulting in increased competition and
costs for feedstock and/or decreased prices for our biodiesel and co-products;
 
    
    Our ability to successfully operate our plant following the period during which the
plant was warm-idled;
 
    
    The imposition of tariffs or other duties on biodiesel imported into Europe;
 
    
    Our ability to comply with the financial covenants in our loan agreements;
 
    
    Changes to our operations related to the engagement of ADM as our biodiesel and
co-product marketer and feedstock procurer;
 
    
    Our ability to hire and retain qualified personnel to operate the plant; and
 
    
    Other factors described elsewhere in this report.
  3




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AVAILABLE INFORMATION
  
 PART I.
 
 Item 1.
    
    Business
 General Development of Business
       4




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5




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Financial Information About Segments
  Principal Products
  Biodiesel
   Primary Co-Product  Crude Glycerin
   Primary Co- Product  Fatty Acid
  Principal Products Markets
 Distribution Methods
   6




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Distribution Methods
   Seasonal Demand for Biodiesel
  General Demand for Biodiesel
   7




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Financial Information about Geographic Areas
  Sources and Availability of Raw Materials
 Feedstock Procurement
  Feedstock Cost and Supply
   Animal Fats and Other Alternative Feedstocks
    8




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Lard and Edible Tallow Prices for the Past
10 Years
 Lard Price
    
    
    Edible TallowMarketing Year
    
    (cents/lb.)
    
    
    Price (cents/lb.)2001/2002
    
    
    13.55
    
    
    
    13.872002/2003
    
    
    18.13
    
    
    
    17.802003/2004
    
    
    26.13
    
    
    
    22.372004/2005
    
    
    21.80
    
    
    
    18.482005/2006
    
    
    21.74
    
    
    
    18.162006/2007
    
    
    28.43
    
    
    
    27.322007/2008
    
    
    40.85
    
    
    
    41.682008/2009
    
    
    26.72
    
    
    
    25.472009/2010
    
    
    31.99
    
    
    
    32.262010/2011
    
    
    44.5-48.5
    (1)
    
    
    45.0-49.0
    (1)
 Lard and Edible Tallow Prices
for Preceding Twelve-Month
Period
 Lard Price
    
    
    Edible TallowMonth
    
    (cents/lb.)
    
    
    Price (cents/lb.)February 2010
    
    
    28.25
    
    
    
    29.42March 2010
    
    
    32.95
    
    
    
    33.73April 2010
    
    
    33.95
    
    
    
    35.14May 2010
    
    
    34.24
    
    
    
    35.33June 2010
    
    
    32.98
    
    
    
    35.72July 2010
    
    
    31.42
    
    
    
    32.50August 2010
    
    
    33.33
    
    
    
    33.54September 2010
    
    
    43.59
    
    
    
    35.02October 2010
    
    
    46.64
    
    
    
    37.00November 2010
    
    
    37.32
    
    
    
    41.75December 2010
    
    
    38.30
    
    
    
    45.00January 2011
    
    
    48.50
    (1)
    
    
    50.10
    (1)
 (1)
    
    Preliminary PriceSource: USDA, Oil Crops Outlook Report, February 10, 2011
 Soybean Oil
   9




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U.S. Soybean Oil Prices for the Past
10 Years
 PriceMarketing Year
    
    (cents/lb.)2001/2002
    
    
    16.462002/2003
    
    
    22.042003/2004
    
    
    29.972004/2005
    
    
    23.012005/2006
    
    
    23.412006/2007
    
    
    31.022007/2008
    
    
    52.032008/2009
    
    
    32.162009/2010
    
    
    35.952010/2011
    
    
    51.0-55.0
    (1)
 U.S. Soybean Oil Prices
for Preceding Twelve-Month
Period
 PriceMonth
    
    (cents/lb.)February 2010
    
    
    34.69March 2010
    
    
    36.39April 2010
    
    
    37.11May 2010
    
    
    35.41June 2010
    
    
    34.47July 2010
    
    
    35.07August 2010
    
    
    37.57September 2010
    
    
    39.21October 2010
    
    
    44.02November 2010
    
    
    47.62December 2010
    
    
    51.51January 2011
    
    
    53.84
    (1)
 (1)
    
    Preliminary PriceSource: USDA, Oil Crops Outlook Report, February 10, 2011
    10




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Feedstock Cold Flow Properties
  Type of Fuel
    
    Cloud Point
    
    
    Pour PointSoy-based Biodiesel (B100)
    
    
    32oF
    
    
    
    25oFChoice white grease-based Biodiesel (B100)
    
    
    48oF
    
    
    
    42oFBeef tallow-based Biodiesel (B100)
    
    
    61oF
    
    
    
    59oFNo. 2 Ultra Low Sulfur Petroleum Diesel
    
    
    6oF
    
    
    
    -30oFB2 Soy Blend with No. 2 Diesel
    
    
    7oF
    
    
    
    -25oF
  Hedging
  Pretreatment Costs
    11




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Utilities, Energy & Infrastructure
  Electricity .
 Water
 Natural Gas
 Patent, Trademarks and Licenses.
  Working Capital
    12




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Government Regulation and Federal Biodiesel Supports
  Renewable Fuels Standard
     13




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Other Federal Biodiesel Supports and Programs
     14




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State Legislation
    Effect of Government Incentives and Regulation
   Competition with Other Biodiesel Producers
    15




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16




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Competition from Other Fuel Sources and Additives
    Research and Development
  Dependence on One or a Few Major Customers
   17




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Costs and Effects of Compliance with Environmental Laws
     Employees
  
 Item 1A.
    
    Risk Factors.
 You should carefully read and consider the risks and uncertainties below and the other information
contained in this report. The risks and uncertainties described below are not the only ones we may
face. The following risks, together with additional risks and uncertainties not currently known to
us or that we currently deem immaterial could impair our financial condition and results of
operations.
 Risks Related to Our Business
 Declines in the prices of biodiesel and glycerin will have a significant negative impact on
our financial performance.
   18




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Our business is sensitive to feedstock costs. Changes in the prices and availability of our
feedstock may hinder our ability to generate revenue.
   Increases in the price of natural gas could reduce our profitability.
  We are in competition with ADM, our current product marketer and feedstock procurer, which
could place us at a competitive disadvantage and cause a conflict of interest for ADM.
  19




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Our exclusive reliance on ADM to procure our inputs and market our products could damage our
profitability if ADM fails to perform its obligations under our agreements with ADM.
   Reductions in the amounts available under our credit facilities with Farm Credit may cause us
to be unable to meet our capital needs.
 Liquidity constraints could impact our operations.
  20




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Our loan agreement contains restrictive covenants that we may be unable to satisfy.
 We have limited experience in the biodiesel industry, which increases the risk of our
inability to operate the biodiesel plant.
  We engage in hedging transactions which involve risks that can harm our business.
  We compete with other biofuels plants for key management and other personnel who are critical
to our success.
  21




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Our business is not diversified.
 If it is necessary to temporarily cease operating our biodiesel plant for sustained periods of
time for any reason, we might not be able to meet our current liabilities and may experience
losses.
 We are at a disadvantage in marketing our glycerin because our plant does not produce
pharmaceutical grade glycerin, thereby decreasing the market for the glycerin we produce.
 Concerns about fuel quality may impact our ability to successfully market our biodiesel.
 Cold weather may cause biodiesel to gel, which could have an adverse impact on our ability to
successfully market our biodiesel.
   22




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We may be unable to generate positive cash flow, and if we are unable to continue our
business, our units may have little or no value.
 Technological advances could significantly decrease the cost of producing biodiesel or result
in the production of higher-quality biodiesel, and if we are unable to adopt or incorporate
technological advances into our operations, our plant could become uncompetitive or obsolete.
 Risks Related to the Biodiesel Industry
 The economic recession and tightening of credit markets has caused demand for biodiesel to
decline, which may adversely affect our ability to generate revenues.
 A decline in crude oil and diesel prices may affect our ability to sell biodiesel at
profitable prices.
 The downturn in the U.S. economy may limit our customers ability to pay for our biodiesel and
co-products, which may adversely affect our ability to generate revenues
  23




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The European Commission has imposed definitive anti-dumping and countervailing duties on
biodiesel imported into Europe, which may negatively impact biodiesel demand and our revenues.
 If demand for biodiesel fails to grow at the same rate as planned supply, the excess
production capacity will adversely impact our financial condition.
  Excess production of glycerin, a co-product of the biodiesel production process, may cause the
price of glycerin to decline, thereby adversely affecting our ability to generate revenue from the
sale of glycerin.
 The biodiesel manufacturing industry is a feedstock limited industry. As more plants go into
production there may not be an adequate supply of feedstock to supply the demands of the industry,
which could threaten the viability of our plant.
  24




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The biodiesel industry is becoming increasingly competitive and we compete with some larger,
better financed entities which could impact our ability to operate profitably.
 Competition from other sources of fuel may decrease the demand for our biodiesel.
 Automobile manufacturers and other industry groups have expressed reservations regarding the
use of biodiesel, which could negatively impact our ability to market our biodiesel.
  Competition from other diesel fuel lubricity additives for ultra low sulfur diesel may be a
less expensive alternative to our biodiesel, which would cause us to lose market share and
adversely affect our ability to generate revenues.
 Several biofuels companies throughout the country have filed for bankruptcy due to industry
and economic conditions.
  25




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Risks Related to Regulation and Governmental Action
 Loss of or ineligibility for favorable tax benefits for biodiesel production could hinder our
ability to operate at a profit and reduce the value of our units.
 A change in environmental regulations or violations thereof could be expensive and increase
our costs.
 Risks Related to Conflicts of
Interest
 Our directors
may have relationships with individuals, companies or organizations which may
result in conflicts of interest.
 Risks Related to Tax Issues in a Limited Liability Company
 We expect to continue to be taxed as a partnership; however, if we are taxed as a corporation
we would be subject to corporate level taxes which would decrease our net income and decrease the
amount of cash available to distribute to our members.
 We may be unable to make any distributions to our members to satisfy tax obligations unless we
obtain the approval of our lender.
 Members may be allocated a share of our taxable income that exceeds any cash distributions
received, therefore members may have to pay this tax liability using their personal funds.
  26




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If we are audited by the IRS resulting in adjustments to our tax returns, this could cause the
IRS to audit members tax returns, which could lead to additional tax liability for our members.
 
 Item 1B.
    
    Unresolved Staff Comments.
  
 Item 2.
    
    Properties.
   
    
    Principal office building
 
    
    Processing building
 
    
    Pretreatment building
 
    
    Loading/receiving building
 
    
    Storage warehouse
 
    
    Storage tank farm
 
    
    Iron treatment facility
 MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 
Liquidity and Capital Resources.
 
 Item 3.
    
    Legal Proceedings.
    27




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Item 4.
    
    (Removed and Reserved).
 
 PART II
 
 Item 5.
    
    Market for Registrants Common Equity, Related Stockholder Matters and Issuer Purchases of
Equity Securities.
 Market Information
    Low
    
    
    High
    
    
    Average
    
    
    # of UnitsQuarter
    
    Price
    
    
    Price
    
    
    Price
    
    
    Traded2009 1st
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    02009 2nd
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    02009 3rd
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    02009 4th
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    02010 1st
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    02010 2nd
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    02010 3rd
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    02010 4th
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    0
   28




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Low
    
    
    High
    
    
    Average
    
    
    # of UnitsSellers Quarter
    
    Price
    
    
    Price
    
    
    Price
    
    
    Listed2009 1st
    
    $
    750
    
    
    $
    750
    
    
    $
    750
    
    
    
    202009 2nd
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    02009 3rd
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    02009 4th
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    02010 1st
    
    $
    1,650
    
    
    $
    1,900
    
    
    $
    1,775
    
    
    
    302010 2nd
    
    $
    800
    
    
    $
    800
    
    
    $
    800
    
    
    
    52010 3rd
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    2010 4th
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
 Low
    
    
    High
    
    
    Average
    
    
    # of UnitsBuyers Quarter
    
    Price
    
    
    Price
    
    
    Price
    
    
    Listed2009 1st
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    02009 2nd
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    02009 3rd
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    02009 4th
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    02010 1st
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    2010 2nd
    
    $
    200.00
    
    
    $
    200.00
    
    
    $
    200.00
    
    
    
    202010 3rd
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    2010 4th
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
  Unit Holders
  Distributions
  Item 7Managements Discussion and Analysis of Financial Condition and Results of
OperationsIndebtedness.
  29




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Performance Graph
  COMPARISON OF CUMULATIVE TOTAL RETURN
 
  Equity Compensation Plans
  Sale of Unregistered Securities
   30




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##### Table of Contents



Repurchases of Equity Securities
  
 Item 6.
    
    Selected Financial Data.
  Statement of Operations Data:
    
    2010
    
    
    2009
    
    
    2008
    
    
    2007
    
    
    2006Revenues
    
    $
    11,601,444
    
    
    $
    50,109,924
    
    
    $
    79,782,833
    
    
    $
    78,676,998
    
    
    $
    31,991,876Cost of Goods Sold
    
    $
    12,338,018
    
    
    $
    46,475,116
    
    
    $
    75,431,492
    
    
    $
    78,253,820
    
    
    $
    23,715,252Gross Profit (Loss)
    
    $
    (736,574
    )
    
    $
    3,634,808
    
    
    $
    4,351,341
    
    
    $
    423,178
    
    
    $
    8,276,624Operating Expenses
    
    $
    1,429,827
    
    
    $
    2,052,040
    
    
    $
    1,915,675
    
    
    $
    1,750,886
    
    
    $
    1,606,516Other Income (Expense)
    
    $
    (29,012
    )
    
    $
    39,307
    
    
    $
    (592,957
    )
    
    $
    (1,278,545
    )
    
    $
    (337,583
    )Net Income (Loss)
    
    $
    (2,195,413
    )
    
    $
    1,622,075
    
    
    $
    1,842,709
    
    
    $
    (2,606,253
    )
    
    $
    6,332,525Weighted Average Units Outstanding
    
    
    26,447
    
    
    
    26,447
    
    
    
    26,447
    
    
    
    26,447
    
    
    
    25,674Net Income (Loss) Per Unit
    
    $
    (83.01
    )
    
    $
    61.33
    
    
    $
    69.68
    
    
    $
    (98.55
    )
    
    $
    246.65Cash Distributions per Unit
    
    $
    
    
    
    $
    
    
    
    $
    
    
    
    $
    80.21
    
    
    $
    
 Balance Sheet Data:
    
    2010
    
    
    2009
    
    
    2008
    
    
    2007
    
    
    2006Total Assets
    
    $
    30,129,718
    
    
    $
    35,804,989
    
    
    $
    37,478,401
    
    
    $
    49,080,864
    
    
    $
    48,831,373Long-Term Debt, less current
maturities
    
    $
    2,195,000
    
    
    $
    3,262,222
    
    
    $
    6,725,056
    
    
    $
    12,366,667
    
    
    $
    12,851,239Members Equity
    
    $
    26,355,372
    
    
    $
    28,550,785
    
    
    $
    26,928,710
    
    
    $
    25,086,001
    
    
    $
    29,813,568Units Outstanding at End of Year
    
    
    26,447
    
    
    
    26,447
    
    
    
    26,447
    
    
    
    26,447
    
    
    
    25,674Book Value Per Capital Unit
    
    $
    996.54
    
    
    $
    1,079.55
    
    
    $
    1,018.21
    
    
    $
    948.54
    
    
    $
    1,161.24
 
 Item 7.
    
    Managements Discussion and Analysis of Financial Condition and Results of Operations.
 Item 1ARisk Factors Item 1Business.
   31




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Results of Operations
 Comparison of Fiscal Years Ended December 31, 2010 and December 31, 2009
  Fiscal Year Ended
    
    
    Fiscal Year EndedDecember 31, 2010
    
    
    December 31, 2009Statement of Operations Data
    
    Amount
    
    
    Percent
    
    
    Amount
    
    
    PercentRevenues
    
    $
    11,601,444
    
    
    
    100.00
    %
    
    $
    50,109,924
    
    
    
    100.00
    %Cost of Sales
    
    $
    12,338,018
    
    
    
    106.35
    %
    
    $
    46,475,116
    
    
    
    92.75
    %Gross Profit (Loss)
    
    $
    (736,574
    )
    
    
    (6.35
    %)
    
    $
    3,634,808
    
    
    
    7.25
    %Operating Expenses
    
    $
    1,429,827
    
    
    
    12.32
    %
    
    $
    2,052,040
    
    
    
    4.10
    %Operating Income
    
    $
    (2,166,401
    )
    
    
    (18.67
    %)
    
    $
    1,582,768
    
    
    
    3.16
    %Other Income (Expense)
    
    $
    (29,012
    )
    
    
    (0.25
    %)
    
    $
    39,307
    
    
    
    0.08
    %Net Income (Loss)
    
    $
    (2,195,413
    )
    
    
    (18.92
    %)
    
    $
    1,622,075
    
    
    
    3.24
    %
 Revenues
  Fiscal Year Ended
    
    
    Fiscal Year EndedDecember 31, 2010
    
    
    December 31, 2009Revenue Source
    
    Amount
    
    
    % of Revenues
    
    
    Amount
    
    
    % of RevenuesBiodiesel Sales
    
    $
    10,423,823
    
    
    
    89.8
    %
    
    $
    48,396,111
    
    
    
    96.6
    %Glycerin Sales
    
    $
    298,037
    
    
    
    2.6
    %
    
    $
    703,169
    
    
    
    1.4
    %Fatty Acid and Soapstock Sales
    
    $
    671,355
    
    
    
    5.8
    %
    
    $
    939,542
    
    
    
    1.9
    %Custom Processing and Storage
    
    $
    208,229
    
    
    
    1.8
    %
    
    $
    71,102
    
    
    
    0.1
    %Total Revenues
    
    $
    11,601,444
    
    
    
    100.00
    %
    
    $
    50,109,924
    
    
    
    100.0
    %
    32




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##### Table of Contents



Cost of Sales
   Operating Expenses
   33




---



##### Table of Contents



Other Income (Expenses)
  Comparison of Fiscal Years Ended December 31, 2009 and 2008.
  Fiscal Year Ended
    
    
    Fiscal Year EndedDecember 31, 2009
    
    
    December 31, 2008Income Statement Data
    
    Amount
    
    
    Percent
    
    
    Amount
    
    
    PercentRevenues
    
    $
    50,109,924
    
    
    
    100.00
    %
    
    $
    79,782,833
    
    
    
    100.00
    %Cost of Sales
    
    $
    46,475,116
    
    
    
    92.75
    %
    
    $
    75,431,492
    
    
    
    94.55
    %Gross Profit
    
    $
    3,634,808
    
    
    
    7.25
    %
    
    $
    4,351,341
    
    
    
    5.45
    %Operating Expenses
    
    $
    2,052,040
    
    
    
    4.10
    %
    
    $
    1,915,675
    
    
    
    2.40
    %Operating Income
    
    $
    1,582,768
    
    
    
    3.16
    %
    
    $
    2,435,666
    
    
    
    3.05
    %Other Income (Expense)
    
    $
    39,307
    
    
    
    0.08
    %
    
    $
    (592,957
    )
    
    
    (0.74
    )%Net Income (Loss)
    
    $
    1,622,075
    
    
    
    3.24
    %
    
    $
    1,842,709
    
    
    
    2.31
    %
 Revenues
  Fiscal Year Ended
    
    
    Fiscal Year EndedDecember 31, 2009
    
    
    December 31, 2008Revenue Source
    
    Amount
    
    
    % of Revenues
    
    
    Amount
    
    
    % of RevenuesBiodiesel Sales
    
    $
    48,396,111
    
    
    
    96.6
    %
    
    $
    76,970,163
    
    
    
    96.5
    %Glycerin Sales
    
    $
    703,169
    
    
    
    1.4
    %
    
    $
    1,766,579
    
    
    
    2.2
    %Fatty Acid and Soapstock Sales
    
    $
    939,542
    
    
    
    1.9
    %
    
    $
    1,046,091
    
    
    
    1.3
    %Custom Processing and Storage
    
    $
    71,102
    
    
    
    0.1
    %
    
    $
    
    
    
    
    
    %Total Revenues
    
    $
    50,109,924
    
    
    
    100.00
    %
    
    $
    79,782,833
    
    
    
    100.0
    %
  34




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##### Table of Contents



Cost of Sales
  Operating Expenses
  Other Income (Expenses)
  Changes in Financial Condition for Fiscal Years Ended December 31, 2010 and 2009
  December 31, 2010
    
    
    December 31, 2009Current Assets
    
    $
    3,821,367
    
    
    $
    7,424,221Current Liabilities
    
    $
    1,579,346
    
    
    $
    3,991,982Long-Term Debt
    
    $
    2,195,000
    
    
    $
    3,262,222Members Equity
    
    $
    26,355,372
    
    
    $
    28,550,785
  35




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##### Table of Contents



Current Assets
  Current Liabilities
  Long-Term Debt
  Members Equity
  Liquidity and Capital Resources
 Comparison of Cash Flows for Fiscal Years Ended December 31, 2010 and December 31, 2009
 2010
    
    
    2009Net cash provided by operating activities
    
    $
    3,822,100
    
    
    $
    3,394,861Net cash used in investing activities
    
    $
    (161,092
    )
    
    $
    (161,747
    )Net cash used in financing activities
    
    $
    (3,600,230
    )
    
    $
    (3,299,214
    )Net increase (decrease) in cash and equivalents
    
    $
    60,778
    
    
    $
    (66,100
    )
 Operating Cash Flows
  Liquidity and
Capital Resources  Indebtedness .
  36




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##### Table of Contents



Investing Cash Flows
  Financing Cash Flows
  Comparison of Cash Flows for Fiscal Years Ended December 31, 2009 and December 31, 2008
 2009
    
    
    2008Net cash provided by (used in) operating activities
    
    $
    3,394,861
    
    
    $
    9,050,603Net cash used in investing activities
    
    $
    (161,747
    )
    
    $
    (394,028
    )Net cash used in financing activities
    
    $
    (3,299,214
    )
    
    $
    (8,622,223
    )Net increase (decrease) in cash and equivalents
    
    $
    (66,100
    )
    
    $
    34,352
 Operating Cash Flows
  Investing Cash Flows
  Financing Cash Flows
  Indebtedness
 Short-Term Debt Sources
   37




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##### Table of Contents



Long-Term Debt Sources
       38




---



##### Table of Contents



Short-Term Debt Sources.
  Contractual Obligations
  Payments Due by PeriodTotal
    
    
    2011
    
    
    2012-2013
    
    
    2014-2015
    
    
    After 2015Long-Term Debt Obligations
    
    $
    2,454,722
    
    
    $
    259,722
    
    
    $
    1,389,444
    
    
    $
    764,444
    
    
    $
    41,112Operating Lease Obligations
    
    $
    17,814
    
    
    $
    17,814
    
    
    
    
    
    
    
    
    
    
    
    Total
    
    $
    2,472,536
    
    
    $
    277,536
    
    
    $
    1,389,444
    
    
    $
    764,444
    
    
    $
    41,112
  39




---



##### Table of Contents



Subsequent Events
   Application of Critical Accounting Estimates
  Inventories .
 Long-Lived Assets .
  Recently Adopted Accounting Standards . Fair Value Measurements and Disclosures
 Off-Balance Sheet Arrangements
   40




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##### Table of Contents



Item 7A.
    
    Quantitative and Qualitative Disclosures About Market Risk.
 Derivatives and Hedging
  Interest Rate Risk
 Item 7  MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS  Liquidity and Capital Resources, Indebtedness.
  Outstanding Variable Rate
    
    
    
    
    
    
    
    
    
    Adverse 10% Change in
    
    
    Annual Adverse Change toDebt at 12/31/10
    
    
    
    
    
    Interest Rate at 12/31/10
    
    
    Interest Rates
    
    
    Income$1,825,000
    
    
    
    
    
    
    3.25
    %
    
    
    3.58
    %
    
    $
    5,931
 Commodity Price Risk
    41




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##### Table of Contents



Effect of HypotheticalAdverse Change Fair Value
    
    
    Market RiskDecember 31, 2010
    
    $
    0
    
    
    $
    0December 31, 2009
    
    $
    533,131
    
    
    $
    53,313
  42




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##### Table of Contents



Item 8.
    
    Financial Statements and Supplementary Data.
 INDEX TO FINANCIAL STATEMENTS
 PAGEACCOUNTANTS COMPILATION REPORT
    
    
    44FINANCIAL STATEMENTSBalance Sheets
    
    
    45Statements of Operations
    
    
    46Statements of Changes in Members Equity
    
    
    47Statements of Cash Flows
    
    
    48Notes to Financial Statements
    
    
    49
  43




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##### Table of Contents



Report of Independent Registered Public Accounting Firm
 Western Iowa Energy, LLC
 Western Iowa Energy, LLC
     
  44




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##### Table of Contents



WESTERN IOWA ENERGY, LLC
 
 BALANCE SHEETS
 December 31, 2010 and 2009
 2010
    
    
    2009ASSETSCURRENT ASSETSCash and cash equivalents
    
    $
    61,078
    
    
    $
    300Margin deposits
    
    
    
    
    
    
    58,445Accounts receivable:Trade
    
    
    248,928
    
    
    
    Related parties
    
    
    
    
    
    
    3,106,676Other receivables
    
    
    295,650
    
    
    
    387,883Incentive receivables
    
    
    231,949
    
    
    
    2,946,499Inventory
    
    
    2,612,016
    
    
    
    383,528Prepaid expenses and other assets
    
    
    371,746
    
    
    
    540,890Total current assets
    
    
    3,821,367
    
    
    
    7,424,221PROPERTY, PLANT AND EQUIPMENTLand and land improvements
    
    
    1,435,928
    
    
    
    1,364,842Office building and equipment
    
    
    659,840
    
    
    
    645,542Plant and process equipment
    
    
    33,938,749
    
    
    
    33,854,309Construction in progress
    
    
    
    
    
    
    8,136Total, at cost
    
    
    36,034,517
    
    
    
    35,872,829Less accumulated depreciation
    
    
    9,901,503
    
    
    
    7,669,210Total property, plant and equipment
    
    
    26,133,014
    
    
    
    28,203,619OTHER ASSETSLand options
    
    
    
    
    
    
    596Other investments
    
    
    124,078
    
    
    
    107,198Loan origination fees, net of amortization
    
    
    51,259
    
    
    
    69,355Total other assets
    
    
    175,337
    
    
    
    177,149TOTAL ASSETS
    
    $
    30,129,718
    
    
    $
    35,804,989LIABILITIES AND MEMBERS EQUITYCURRENT LIABILITIESChecks issued in excess of bank balance
    
    $
    
    
    
    $
    333,008Accounts payable:Trade
    
    
    1,209,965
    
    
    
    824,979Related party
    
    
    13,838
    
    
    
    88,277Current portion of long-term debt
    
    
    259,722
    
    
    
    2,459,722Derivative instruments
    
    
    
    
    
    
    2,587Accrued interest
    
    
    6,079
    
    
    
    22,226Accrued wages and benefits
    
    
    61,651
    
    
    
    107,664Accrued payroll taxes
    
    
    2,657
    
    
    
    3,678Accrued expenses  related party
    
    
    
    
    
    
    103,537Other current liabilities
    
    
    25,434
    
    
    
    46,304Total current liabilities
    
    
    1,579,346
    
    
    
    3,991,982LONG-TERM LIABILITIESLong-term debt, less current portion above
    
    
    2,195,000
    
    
    
    3,262,222Total liabilities
    
    
    3,774,346
    
    
    
    7,254,204COMMITMENTS AND CONTINGENCIES (Note 9 & Note 15)MEMBERS EQUITYContributed capital
    
    
    23,516,376
    
    
    
    23,516,376Retained earnings
    
    
    2,838,996
    
    
    
    5,034,409Total members equity
    
    
    26,355,372
    
    
    
    28,550,785TOTAL LIABILITIES AND MEMBERS EQUITY
    
    $
    30,129,718
    
    
    $
    35,804,989
   45




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##### Table of Contents



WESTERN IOWA ENERGY, LLC
 
 STATEMENTS OF OPERATIONS
 Years Ended December 31, 2010, 2009 and 2008
 2010
    
    
    2009
    
    
    2008REVENUESRelated parties
    
    $
    8,452,526
    
    
    $
    43,123,269
    
    
    $
    69,714,221Unrelated parties
    
    
    2,706,459
    
    
    
    
    
    
    
    Incentive funds
    
    
    442,459
    
    
    
    6,986,655
    
    
    
    10,068,612Total revenues
    
    
    11,601,444
    
    
    
    50,109,924
    
    
    
    79,782,833COST OF SALES
    
    
    12,338,018
    
    
    
    46,475,116
    
    
    
    75,431,492Gross profit (loss)
    
    
    (736,574
    )
    
    
    3,634,808
    
    
    
    4,351,341OPERATING EXPENSESConsulting and professional fees
    
    
    446,302
    
    
    
    622,584
    
    
    
    289,544Office and administrative expenses
    
    
    983,525
    
    
    
    1,429,456
    
    
    
    1,626,131Total operating expenses
    
    
    1,429,827
    
    
    
    2,052,040
    
    
    
    1,915,675OTHER INCOME (EXPENSE)Interest income
    
    
    3,733
    
    
    
    13,746
    
    
    
    9,882Interest expense
    
    
    (98,997
    )
    
    
    (322,698
    )
    
    
    (759,243
    )Grant income
    
    
    
    
    
    
    231,525
    
    
    
    Patronage dividends
    
    
    66,252
    
    
    
    116,734
    
    
    
    156,404Total other income (expense)
    
    
    (29,012
    )
    
    
    39,307
    
    
    
    (592,957
    )NET INCOME (LOSS)
    
    $
    (2,195,413
    )
    
    $
    1,622,075
    
    
    $
    1,842,709BASIC AND DILUTED EARNINGS
(LOSS) PER UNIT
    
    $
    (83.01
    )
    
    $
    61.33
    
    
    $
    69.68WEIGHTED AVERAGE UNITS OUTSTANDING,
BASIC AND DILUTED
    
    
    26,447
    
    
    
    26,447
    
    
    
    26,447
   46




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##### Table of Contents



WESTERN IOWA ENERGY, LLC
 
 STATEMENTS OF CHANGES IN MEMBERS EQUITY
 Years Ended December 31, 2010, 2009 and 2008
 Contributed
    
    
    RetainedUnits
    
    
    Capital
    
    
    Earnings
    
    
    TotalBALANCE, DECEMBER 31, 2007
    
    
    26,447
    
    
    $
    23,516,376
    
    
    $
    1,569,625
    
    
    $
    25,086,001Net income for the year ended December 31, 2008
    
    
    
    
    
    
    
    
    
    
    1,842,709
    
    
    
    1,842,709BALANCE, DECEMBER 31, 2008
    
    
    26,447
    
    
    
    23,516,376
    
    
    
    3,412,334
    
    
    
    26,928,710Net income for the year ended December 31, 2009
    
    
    
    
    
    
    
    
    
    
    1,622,075
    
    
    
    1,622,075BALANCE, DECEMBER 31, 2009
    
    
    26,447
    
    
    
    23,516,376
    
    
    
    5,034,409
    
    
    
    28,550,785Net loss for the year ended December 31, 2010
    
    
    
    
    
    
    
    
    
    
    (2,195,413
    )
    
    
    (2,195,413
    )BALANCE, DECEMBER 31, 2010
    
    
    26,447
    
    
    $
    23,516,376
    
    
    $
    2,838,996
    
    
    $
    26,355,372
   47




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##### Table of Contents



WESTERN IOWA ENERGY, LLC
 
 STATEMENTS OF CASH FLOWS
 Years Ended December 31, 2010, 2009 and 2008
 2010
    
    
    2009
    
    
    2008CASH FLOWS FROM OPERATING ACTIVITIESNet income (loss)
    
    $
    (2,195,413
    )
    
    $
    1,622,075
    
    
    $
    1,842,709Adjustments to reconcile net income (loss) to net cash provided by operating activities:Depreciation and amortization
    
    
    2,250,389
    
    
    
    2,235,685
    
    
    
    2,208,288Non cash portion of patronage dividends
    
    
    (16,880
    )
    
    
    (26,303
    )
    
    
    (47,085
    )Non cash forgiveness of debt
    
    
    
    
    
    
    (100,000
    )
    
    
    Effects of changes in operating assets and liabilities:Margin deposits
    
    
    58,445
    
    
    
    226,850
    
    
    
    1,141,923Accounts receivable
    
    
    2,857,748
    
    
    
    (1,678,155
    )
    
    
    4,387,564Other receivables
    
    
    92,233
    
    
    
    (224,413
    )
    
    
    (157,473
    )Incentive receivables
    
    
    2,714,550
    
    
    
    (2,634,480
    )
    
    
    5,206Inventory
    
    
    (2,228,488
    )
    
    
    4,126,929
    
    
    
    4,587,894Derivative instruments
    
    
    (2,587
    )
    
    
    63,947
    
    
    
    (1,997,735
    )Prepaid expenses and other assets
    
    
    169,144
    
    
    
    (318,414
    )
    
    
    (34,114
    )Accounts payable
    
    
    310,547
    
    
    
    90,431
    
    
    
    (2,985,924
    )Accrued interest
    
    
    (16,147
    )
    
    
    (11,146
    )
    
    
    (67,170
    )Accrued wages and benefits
    
    
    (46,013
    )
    
    
    36,094
    
    
    
    14,881Accrued payroll taxes
    
    
    (1,021
    )
    
    
    (381
    )
    
    
    804Accrued expenses  related party
    
    
    (103,537
    )
    
    
    (14,083
    )
    
    
    117,620Other current liabilities
    
    
    (20,870
    )
    
    
    225
    
    
    
    33,215Net cash provided by operating activities
    
    
    3,822,100
    
    
    
    3,394,861
    
    
    
    9,050,603CASH FLOWS FROM INVESTING ACTIVITIESPurchase of property, plant and equipment, including
construction in progress
    
    
    (161,092
    )
    
    
    (161,747
    )
    
    
    (394,028
    )Net cash used in investing activities
    
    
    (161,092
    )
    
    
    (161,747
    )
    
    
    (394,028
    )CASH FLOWS FROM FINANCING ACTIVITIESNet increase (decrease) in checks issued
in excess of bank balance
    
    
    (333,008
    )
    
    
    333,008
    
    
    
    Net payments on revolving line of credit
    
    
    
    
    
    
    
    
    
    
    (3,800,000
    )Proceeds from long-term debt
    
    
    5,175,000
    
    
    
    12,627,000
    
    
    
    8,082,566Payments on long-term debt
    
    
    (8,442,222
    )
    
    
    (16,259,222
    )
    
    
    (12,904,789
    )Net cash used in financing activities
    
    
    (3,600,230
    )
    
    
    (3,299,214
    )
    
    
    (8,622,223
    )NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
    
    
    60,778
    
    
    
    (66,100
    )
    
    
    34,352CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD
    
    
    300
    
    
    
    66,400
    
    
    
    32,048CASH AND CASH EQUIVALENTS, END OF PERIOD
    
    $
    61,078
    
    
    $
    300
    
    
    $
    66,400
   48




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##### Table of Contents



WESTERN IOWA ENERGY, LLC
 
 NOTES TO FINANCIAL STATEMENTS
 December 31, 2010 and 2009
 NOTE 1  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
  Use of Estimates in Preparing Financial Statements
  Basis of Accounting
  Revenue Recognition
   Cash and Cash Equivalents
   Accounts Receivable
    49




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##### Table of Contents



Derivative Instruments and Hedging Activities
 Derivatives and Hedging,
 Inventories
  Property, Plant, and Equipment
   YearsLand improvements
    
    
    20-40Office building
    
    
    5-40Office equipment
    
    
    5-20Plant and process equipment
    
    
    10-40
   Loan Origination Fees
  Other Investments
  Grant Income
   50




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##### Table of Contents



Income Taxes
  Earnings (Loss) Per Unit
  Cost of Sales
   Shipping and Handling Costs
  Environmental Liabilities
  Fair Value of Financial Instruments
  Current assets and current liabilities
 Long-term debt
  51




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##### Table of Contents



New Accounting Standards
 Fair Value Measurements and Disclosures
 NOTE 2  INCENTIVE PAYMENTS AND RECEIVABLE
   NOTE 3  INVENTORY
  2010
    
    
    2009Raw material
    
    $
    1,976,460
    
    
    $
    273,791Work in process
    
    
    31,278
    
    
    
    49,398Finished goods
    
    
    604,278
    
    
    
    60,339Total
    
    $
    2,612,016
    
    
    $
    383,528
 NOTE 4  DEBT AND FINANCING
 Long-Term Debt
  2010
    
    
    2009Note payable to Farm Credit Services of America and
CoBank under term note agreement  see details
below
    
    $
    
    
    
    $
    2,350,000Note payable to Farm Credit Services of America and
CoBank under reducing revolving credit note  see
details below
    
    
    1,825,000
    
    
    
    2,630,000Note payable to the Iowa Department of Economic Development  see details below
    
    
    177,500
    
    
    
    207,500Note payable to Glidden Rural Electric Cooperative  see details below
    
    
    452,222
    
    
    
    534,444Total
    
    
    2,454,722
    
    
    
    5,721,944Less current portion
    
    
    259,722
    
    
    
    2,459,722Long-term portion
    
    $
    2,195,000
    
    
    $
    3,262,222
  52




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##### Table of Contents



2011
    
    $
    259,7222012
    
    
    82,2222013
    
    
    1,307,2222014
    
    
    682,2222015
    
    
    82,222Thereafter
    
    
    41,112Total
    
    $
    2,454,722
      53




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##### Table of Contents



NOTE 5  MEMBERS EQUITY
  NOTE 6  INCOME TAXES
   NOTE 7  CASH FLOW DISCLOSURES
  2010
    
    
    2009
    
    
    2008Cash paid for interest
    
    $
    115,118
    
    
    $
    333,845
    
    
    $
    826,413
 NOTE 8  RELATED PARTY TRANSACTIONS
    NOTE 9  MAJOR CUSTOMER AND COMMITMENTS
   54




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##### Table of Contents



NOTE 10  LEASE COMMITMENTS
  2011
    
    $
    17,814
  NOTE 11  RETIREMENT AND SAVINGS PLAN
  NOTE 12  FAIR VALUE OF FINANCIAL INSTRUMENTS
  
    
    Level 1Unadjusted quoted prices for identical assets and liabilities in active
markets;
    
    Level 2Quoted prices for similar assets and liabilities in active markets (other
than those included in Level 1) which are observable for the asset or liability, either
directly or indirectly; and
    
    Level 3Valuations derived from valuation techniques in which one or more
significant inputs or significant value drivers are unobservable.
  SignificantQuoted Prices in
    
    
    Other
    
    
    SignificantCarrying Amount
    
    
    Active Markets for
    
    
    Observable
    
    
    Unobservableon
    
    
    Identical Assets
    
    
    Inputs
    
    
    InputsBalance Sheet
    
    
    (Level 1)
    
    
    (Level 2)
    
    
    (Level 3)Financial liabilities:Commodity derivatives
    
    $
    (2,587
    )
    
    $
    (2,587
    )
    
    $
    
    
    
    $
    
   55




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##### Table of Contents



NOTE 13  DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES
 Derivatives and Hedging,
 Objectives and Strategies for Holding Derivative Instruments
  Commodity Risk Management
  Accounting for Derivative Instruments and Hedging Activities
   Liability DerivativesBalance SheetLocation
    
    
    Fair ValueCommodity contracts 
Heat oil swaps
    
    Current liabilities
    
    $
    (2,587
    )
  Derivative (Gain) Loss
    
    
    Derivative (Gain) LossYear Ended
    
    
    Year EndedDecember 31, 2010
    
    
    December 31, 2009Statement of
    
    
    
    
    
    
    Statement ofOperations Location
    
    
    (Gain) Loss
    
    
    Operations Location
    
    
    (Gain) LossCommodity contracts 
Heat oil swaps
    
    Cost of sales
    
    $
    (95,704
    )
    
    Cost of sales
    
    $
    1,054,297
  56




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##### Table of Contents



NOTE 14  UNCERTAINTIES
    NOTE 15  GAIN CONTINGENCIES
  NOTE 16  SUBSEQUENT EVENTS
   NOTE 17  QUARTERLY FINANCIAL DATA
   First
    
    
    Second
    
    
    Third
    
    
    FourthQuarter
    
    
    Quarter
    
    
    Quarter
    
    
    QuarterRevenues
    
    $
    3,539,041
    
    
    $
    2,995,789
    
    
    $
    2,898,239
    
    
    $
    2,168,375Gross profit (loss)
    
    
    (457,172
    )
    
    
    18,776
    
    
    
    (456,099
    )
    
    
    157,921Operating income (loss)
    
    
    (967,250
    )
    
    
    (366,305
    )
    
    
    (733,000
    )
    
    
    (99,846
    )Net income (loss)
    
    
    (930,802
    )
    
    
    (392,955
    )
    
    
    (755,132
    )
    
    
    (116,524
    )Basic and diluted
earnings (loss) per unit
    
    
    (35.19
    )
    
    
    (14.86
    )
    
    
    (28.55
    )
    
    
    (4.41
    )
  57




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##### Table of Contents



First
    
    
    Second
    
    
    Third
    
    
    FourthQuarter
    
    
    Quarter
    
    
    Quarter
    
    
    QuarterRevenues
    
    $
    3,966,137
    
    
    $
    10,899,985
    
    
    $
    17,037,884
    
    
    $
    18,134,816Gross profit (loss)
    
    
    (294,631
    )
    
    
    369,129
    
    
    
    1,606,965
    
    
    
    1,882,243Operating income (loss)
    
    
    (754,741
    )
    
    
    (175,824
    )
    
    
    1,065,530
    
    
    
    1,379,701Net income (loss)
    
    
    (629,492
    )
    
    
    (259,934
    )
    
    
    1,119,037
    
    
    
    1,392,464Basic and diluted
earnings (loss) per unit
    
    
    (23.80
    )
    
    
    (9.83
    )
    
    
    42.31
    
    
    
    52.65
  First
    
    
    Second
    
    
    Third
    
    
    FourthQuarter
    
    
    Quarter
    
    
    Quarter
    
    
    QuarterRevenues
    
    $
    18,029,542
    
    
    $
    27,601,282
    
    
    $
    26,238,615
    
    
    $
    7,913,394Gross profit (loss)
    
    
    1,784,314
    
    
    
    2,467,747
    
    
    
    2,093,569
    
    
    
    (1,993,289
    )Operating income (loss)
    
    
    1,246,255
    
    
    
    1,896,946
    
    
    
    1,515,203
    
    
    
    (2,222,738
    )Net income (loss)
    
    
    1,127,993
    
    
    
    1,675,218
    
    
    
    1,377,779
    
    
    
    (2,338,281
    )Basic and diluted
earnings (loss) per unit
    
    
    42.65
    
    
    
    63.34
    
    
    
    52.10
    
    
    
    (88.41
    )
   58




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##### Table of Contents



Item 9.
    
    Changes in and Disagreements With Accountants on Accounting and Financial Disclosure.
  
 Item 9A.
    
    Controls and Procedures.
 Disclosure Controls and Procedures
  Managements Report on Internal Control over Financial Reporting
  
    
    Pertain to the maintenance of records that in reasonable detail accurately and fairly
reflect the transactions and dispositions of the assets of the Company;
 
    
    Provide reasonable assurance that transactions are recorded as necessary to permit
preparation of financial statements in accordance with Generally Accepted Accounting
Principles, and that receipts and expenditures of the Company are being made only in
accordance with authorizations of management and directors of the Company; and
 
    
    Provide reasonable assurance regarding prevention or timely detection of unauthorized
acquisition, use or disposition of the Companys assets that could have a material effect
on the financial statements.
  Changes in Internal Control Over Financial Reporting
   59




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##### Table of Contents



Item 9B.
    
    Other Information.
  
 PART III
 
 Item 10.
    
    Directors, Executive Officers and Corporate Governance.
  
 Item 11.
    
    Executive Compensation.
  
 Item 12.
    
    Security Ownership of Certain Beneficial Owners and Management and Related Stockholder
Matters.
  
 Item 13.
    
    Certain Relationships and Related Transactions, and Director Independence.
  
 Item 14.
    
    Principal Accounting Fees and Services.
  
 PART IV
 
 Item 15.
    
    Exhibits, Financial Statement Schedules.
  (1)
    
    Financial Statements
 The financial statements appear beginning at page 44 of this report.
 (2)
    
    Financial Statement Schedules
 All supplemental schedules are omitted as the required information is inapplicable or
the information is presented in the financial statements or related notes.
  60




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##### Table of Contents



(3)
    
    Exhibits
 Exhibit No.

    
    Exhibit
    
    Method of Filing3.1
    
    
    Articles of Organization of Western Iowa Energy, LLC.
    
    
    13.2
    
    
    Amended and Restated Operating Agreement of Western Iowa Energy, LLC
    
    
    13.3
    
    
    First Amendment to Amended and Restated Operating Agreement of
Western Iowa Energy, LLC.
    
    
    610.1
    
    
    Water Supply and Storage Agreement between the Incorporated City of
Wall Lake, Iowa and Western Iowa Energy, LLC, undated.
    
    
    110.2
    
    
    Master Loan Agreement between Farm Credit Services of America, FLCA
and Western Iowa Energy, LLC, dated June 6, 2005.
    
    
    110.3
    
    
    Construction and Revolving Term Loan Supplement between Farm Credit
Services of America, FLCA and Western Iowa Energy, LLC, dated June
6, 2005.
    
    
    110.4
    
    
    Administrative Agency Agreement between Farm Credit Services of
America, FLCA, CoBank, ACB and Western Iowa Energy, LLC, dated June
6, 2005.
    
    
    110.5
    
    
    Iowa Department of Economic Development VAAPFAP Loan/Forgivable
Loan Agreement and Promissory Note, dated December 16, 2004.
    
    
    110.6
    
    
    Industry Track Agreement between Chicago Central and Pacific
Railroad Company and Western Iowa Energy, LLC, dated June 5, 2006.
    
    
    210.7
    
    
    Assignment and Pledge Agreement by Western Iowa Energy, LLC in
favor of Farm Credit Services of America, FLCA, dated June 15,
2006.
    
    
    210.8
    
    
    Rural Development Loan Agreement between Glidden Rural Electric
Cooperative and Western Iowa Energy, LLC, dated July 13, 2006.
    
    
    310.9
    
    
    Amendment to Master Loan Agreement between Farm Credit Services of
America, FLCA and Western Iowa Energy, LLC, dated June 21, 2007.
    
    
    510.10
    
    
    Amendment to Master Loan Agreement between Farm Credit Services of
America, FLCA and Western Iowa Energy, LLC, dated June 5, 2008.
    
    
    710.11
    
    
    Letter Agreement regarding Term Revolver between Farm Credit
Services of America, FLCA and Western Iowa Energy, LLC, dated May
14, 2010.
    
    
    810.12
    
    
    Letter Agreement regarding Employment between Jeffrey J.
Johannesmeyer and Western Iowa Energy, LLC, dated August 31, 2010.
    
    
    910.13
    
    
    Product Marketing Agreement between Archer-Daniels-Midland Company
and Western Iowa Energy, LLC, dated September 21, 2010. +
    
    
    1010.14
    
    
    Feedstock Agreement between Archer-Daniels-Midland Company and
Western Iowa Energy, LLC, dated September 21, 2010. +
    
    
    1010.15
    
    
    Services Agreement between Archer-Daniels-Midland Company and
Western Iowa Energy, LLC, dated September 21, 2010. +
    
    
    10
  61




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##### Table of Contents



Exhibit No.

    
    Exhibit
    
    Method of Filing10.16
    
    
    Letter Agreement regarding Term Revolver between Farm Credit
Services of America, FLCA and Western Iowa Energy, LLC, dated
February 25, 2011.
    
    
    1114.1
    
    
    Code of Ethics.
    
    
    431.1
    
    
    Certificate Pursuant to 17 CFR 240.15d-14(a).
    
    
    *31.2
    
    
    Certificate Pursuant to 17 CFR 240.15d-14(a).
    
    
    *32.1
    
    
    Certificate Pursuant to 18 U.S.C. § 1350.
    
    
    *32.2
    
    
    Certificate Pursuant to 18 U.S.C. § 1350.
    
    
    *
 (+)
    
    Confidential Treatment Requested.(1)
    
    Incorporated by reference as filed on our Registration Statement on Form 10-SB, No.
000-51965, originally filed on May 2, 2006.(2)
    
    Incorporated by reference as filed on our Quarterly Report on Form 10-QSB filed on
August 18, 2006.(3)
    
    Incorporated by reference as filed on our Quarterly Report on Form 10-QSB filed on
November 14, 2006.(4)
    
    Incorporated by reference as filed on our Annual Report on Form 10-KSB filed on March
9, 2007.(5)
    
    Incorporated by reference as filed on our Quarterly Report on Form 10-QSB filed on
August 14, 2007.(6)
    
    Incorporated by reference as filed on our Quarterly Report on Form 10-Q filed on May
15, 2008.(7)
    
    Incorporated by reference as filed on our Form 8-K filed on February 12, 2009.(8)
    
    Incorporated by reference as filed on our Form 8-K filed on May 19, 2010.(9)
    
    Incorporated by reference as filed on our Form 8-K filed on September 8, 2010.(10)
    
    Incorporated by reference as filed on our Quarterly Report on Form 10-Q filed on
November 15, 2010.(11)
    
    Incorporated by reference as filed on our Form 8-K filed on March 18, 2011.(*)
    
    Filed herewith.  62




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##### Table of Contents



SIGNATURES
  WESTERN IOWA ENERGY, LLCDate: March 29, 2011
    /s/ William J. HoranWilliam J. HoranChairman, President and Director

(Principal Executive Officer)Date: March 29, 2011
    /s/ Joe NepplJoe NepplChief Financial Officer

(Principal Financial and Accounting Officer)  Date: March 29, 2011
    
    /s/ William J. Horan

William J. Horan, Chairman, President and DirectorDate: March 29, 2011
    
    /s/ John Geake

John Geake, Vice-Chairman and DirectorDate: March 29, 2011
    
    /s/ Kevin J. Ross

Kevin J. Ross, Secretary and DirectorDate: March 29, 2011
    
    /s/ Dennis Mauser

Dennis Mauser, Treasurer and DirectorDate: March 29, 2011
    
    /s/ Warren L. Bush

Warren L. Bush, DirectorDate: March 29, 2011
    
    /s/ Brent Halling

Brent Halling, DirectorDate: March 29, 2011
    
    /s/ Virgil Harrison

Virgil Harrison, Director
  63