Form 10-Q

                       Securities and Exchange Commission
                            Washington, D.C.  20549


[ X ]  Quarterly report pursuant to Section 13 of 15(d) of the Securities
Exchange Act of 1934.


For  the quarterly period ended March 31, 2001 or

[   ]  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 1-8680

                             High Plains Corporation

             (Exact name of registrant as specified in its charter)


Kansas                                                           #48-0901658
(State or other jurisdiction of incorporation or               (IRS Employer
organization)                                            Identification No.)


200 W Douglas                                                          67202
Suite #820                                                        (Zip Code)
Wichita, Kansas
(Address of principal executive offices)

                                (316) 269-4310
                         (Registrant's telephone number)

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

                                Yes  X     No

           APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY PROCEEDING
                         DURING THE PRECEDING FIVE YEARS:

Indicate by check mark whether the registrant has filed all documents and
reports required to be filed by Sections 12, 13 or 15(d) of the Securities
Exchange Act of 1934 subsequent to the distribution of securities under plan
confirmed by a court.

                                Yes        No

                    Common Stock, Par Value $.10 per share,
                  Outstanding at March 31, 2001  - 16,259,925


<PAGE>

PART I    FINANCIAL INFORMATION

Item 1.   FINANCIAL STATEMENTS

Balance Sheet                                                   3 - 4

Statements of Operations                                          5

Statements of Comprehensive Income/(Loss)                         5

Statement of Stockholders' Equity                               6 - 7

Statement of Cash Flows                                           8

Selected Notes to Financial Statements                          9 - 11


Item 2.   MANAGEMENT'S DISCUSSION AND ANALYSIS
          OF FINANCIAL CONDITION AND RESULTS OF
          OPERATIONS                                           12 - 15

PART II      OTHER INFORMATION

Item 3.  Legal Proceedings                                        16

Item 4.  Other Information                                        16

Item 5.   Exhibits and Reports on Form 8-K                     16 - 17


<PAGE>

<TABLE>
                              HIGH PLAINS CORPORATION
                                  Balance Sheets
                                   (Unaudited)
                         March 31, 2001 and June 30, 2000

<CAPTION>

Assets                                 March 31, 2001      June 30, 2000
                                         (Unaudited)             **
<S>                                     <C>                 <C>
Current Assets:
  Cash and cash equivalents             $  4,859,083        $  4,886,011
  Accounts receivable
  Trade (less allowance of $75,000)       10,723,376          10,026,422
  Production credits and incentives
  (less allowance of $ 0 and
   $124,222, respectively)                   273,358             329,829
Inventories                                5,881,654           4,283,561
Notes receivable                              15,000              50,000
Prepaid expenses                             532,876             487,428
Refundable income tax                              0              30,000
  Total current assets                    22,285,347          20,093,251


Property, plant and equipment, at cost:
  Land and land improvements                 450,403             450,403
  Ethanol plants                          95,453,073          93,366,635
  Other equipment                            577,880             573,911
  Office equipment                           411,739             389,446
  Leasehold improvements                      48,002              48,002
  Construction in progress                 1,775,864             914,586
  Sub-total                               98,716,961          95,742,983
  Less accumulated depreciation          (33,988,746)        (31,295,936)
  Net property, plant and equipment       64,728,215          64,447,047

Other assets:
  Deferred loan costs (less accumulated      742,174             849,244
  amortization of $282,442 and $125,372,
  respectively)
  Other                                        2,279              13,054
  Total other assets                         744,453             862,298
                                        $ 87,758,015        $ 85,402,596
<FN>

                   See accompanying notes to financial statements.
                        ** From audited financial statements.

</TABLE>

<PAGE>

<TABLE>
                             HIGH PLAINS CORPORATION
                                  Balance Sheets
                                   (Unaudited)
                         March 31, 2001 and June 30, 2000

<CAPTION>

Liabilities and Stockholders' Equity       March 31, 2001     June 30, 2000
      (Unaudited)  **
<S>                                         <C>                <C>
Current Liabilities:
  Current portion of long-term debt         $  2,250,000       $  2,507,138
  Current maturities of capital leases           595,849            561,518
  Accounts payable                             8,596,990          8,695,216
  Accrued interest                               121,342            295,772
  Accrued payroll and property taxes             848,363            779,199
    Total current liabilities                 12,412,544         12,838,843



Long-term debt                                12,205,360         16,492,860
Capital lease obligations, less
  current maturities                             497,561            940,376
Deferred income tax payable                    4,229,949          1,389,000
Other                                             25,769            273,253
  Total non-current liabilities               16,958,639         19,095,489


Stockholders' Equity:
  Common stock, $.10 par value, authorized
  50,000,000 shares; issued 16,721,574 and
  16,453,798 shares at March 31, 2001 and
  June 30, 2000, respectively, of which 461,649
  and 276,847 were held as treasury stock at
  March 31, 2001 and June 30, 2000,
  respectively.                                1,672,157          1,645,380
  Additional paid-in capital                  38,356,814         37,695,277
  Retained earnings                           19,754,220         14,865,932
  Accumulated other comprehensive income:
  Cash flow hedge derivatives                   (153,372)                 0
                                              59,629,819         54,206,589


Less:
  Treasury stock-at cost                      (1,242,987)          (710,849)
  Deferred compensation                                0            (27,476)
  Total stockholders' equity                  58,386,832         53,468,264
                                            $ 87,758,015       $ 85,402,596

<FN>
                 See accompanying notes to financial statements.
                       ** From audited financial statements.

</TABLE>

<PAGE>

<TABLE>
                             HIGH PLAINS CORPORATION
                             Statement of Operations
                                   (Unaudited)
                    Three Months Ended March 31, 2001 and 2000
                   and Nine Months Ended March 31, 2001 and 2000

<CAPTION>
                            Three Months Ended           Nine Months Ended
                                  March 31,                  March 31,
                             2001         2000          2001          2000

<S>                      <C>          <C>           <C>           <C>
Net sales and revenues   $ 40,178,889 $ 27,601,410  $105,439,248  $ 75,619,229
Cost of goods sold         36,954,562   24,607,512    93,877,120    69,939,162
  Gross profit              3,224,327    2,993,898    11,562,128     5,680,067

Selling, general and
administrative expenses       918,379      629,711     2,673,551     2,283,249
  Operating income          2,305,948    2,364,187     8,888,577     3,396,818
Other income/(expense):
  Interest expense           (415,371)    (514,388)   (1,381,570)   (1,314,486)
  Interest and other income   117,674       61,452       327,774        95,115
  (Loss)/gain on
    disposition of assets     (13,520)           0       (13,520)       20,388
                             (311,217)    (452,936)   (1,067,316)   (1,198,983)
Net income before
  income taxes              1,994,731    1,911,251     7,821,261     2,197,835

Income tax expense           (748,024)    (716,719)   (2,932,973)     (824,188)

Net earnings             $  1,246,707 $  1,194,532  $  4,888,288  $  1,373,647

Diluted earnings per
 share                   $        .08 $        .07  $        .30  $        .08

</TABLE>

<TABLE>


                     Statements of Comprehensive Income/(Loss)
                                    (Unaudited)
                     Three Months Ended March 31, 2001 and 2000
                    and Nine Months Ended March 31, 2001 and 2000

<CAPTION>
                              Three Months Ended        Nine Months Ended
                                   March 31,                  March 31,
                               2001         2000        2001         2000

<S>                      <C>          <C>           <C>           <C>
Net earnings             $  1,246,707 $  1,194,532  $  4,888,288  $  1,373,647

Other comprehensive income:
Cash flow hedge derivatives  (459,537)           0      (153,372)            0
Comprehensive income     $  787,170   $  1,194,532  $  4,734,916  $  1,373,647

<FN>
                   See accompanying notes to financial statements.

</TABLE>

<PAGE>

<TABLE>
                              HIGH PLAINS CORPORATION
                          Statement of Stockholders' Equity
                                     (Unaudited)
                           Nine Months Ended March 31, 2001

<CAPTION>
                     Common Stock
                       (Issued)
                                        Additional                Accumulated
                 Number of               Paid-In     Retained Other
Comprehensive Treasury    Deferred
                  Shares      Amount     Capital     Earnings       Income
Stock    Compensation  Total
<S>             <C>        <C>         <C>         <C>          <C>
<C>          <C>        <C>
Balance,
 June 30, 2000  16,453,798 $ 1,645,380 $37,695,277 $14,865,932  $           0
$ (710,849)  $ (27,476) $53,468,264

Exercise of
 options under
 espp                  393          39         722
761

Exercise of
 stock options      30,000       3,000      38,251
41,251

Amortization of
 deferred
 compensation
4,208        4,208

Cash flow
 hedge derivatives                                                    136,865
136,865

Net earnings
 for quarter                                         1,297,597
1,297,597

Balance,
 September 30,
 2000           16,484,191   1,648,419  37,734,250  16,163,529        136,865
(710,849)    (23,268)  54,948,946

Exercise of
 stock options      31,100       3,110      96,364
99,474

Amortization of
 deferred
 compensation
3,004        3,004

Cash flow hedge
 derivatives                                                          169,300
169,300

Acquisition of
 Treasury Stock
(247,113)                (247,113)

Net earnings
 for quarter                                         2,343,984
2,343,984

Balance,
 December 31,
 2000           16,515,291 $ 1,651,529 $37,830,614 $18,507,513  $     306,165
$ (957,962)  $ (20,264) $57,317,595

<FN>
                       See accompanying notes to financial statements.
</TABLE>

<PAGE>

<TABLE>
                              HIGH PLAINS CORPORATION
                          Statement of Stockholders' Equity
                                     (Unaudited)
                           Nine Months Ended March 31, 2001
<CAPTION>

              Common Stock
                (Issued)
                                  Additional               Accumulated
               Number of            Paid-In    Retained Other Comprehensive
Treasury    Deferred
                 Shares    Amount   Capital    Earnings      Income
Stock    Compensation       Total

<S>             <C>        <C>       <C>       <C>          <C>            <C>
<C>          <C>
Exercise of
 stock options  127,500    12,750    254,538
267,288

Exercise of
 options under
 espp            78,783     7,878    271,662
279,540

Amortization of
 deferred
 compensation
20,264         20,264

Acquisition of
 Treasury Stock
(285,025)                  (285,025)

Cash flow
 hedge derivatives                                              (459,537)
(459,537)

Net earnings
 for quarter                                     1,246,707
1,246,707

Balance,
 March 31,
 2001        16,721,574 $1,672,157 $38,356,814 $19,754,220  $   (153,372)
$(1,242,987) $       (0)  $ 58,386,832

<FN>
                          See accompanying notes to financial statements.

</TABLE>

<PAGE>

<TABLE>
                              HIGH PLAINS CORPORATION
                              Statement of Cash Flows
                                    (Unaudited)
                       Nine Months Ended March 31, 2001 and 2000

<CAPTION>
                                                    2001             2000

<S>                                            <C>               <C>
Cash flows from operating activities:
  Net earnings                                 $  4,888,288      $  1,373,647
  Adjustments to reconcile net earnings to
   net cash provided by operating activities:
  Depreciation and amortization                   2,896,760         3,004,093
  Amortization of deferred compensation              27,476            (5,230)
  Compensation expense on treasury stock grants           0           225,029
  Provision for bad debt                             49,910            27,473
  Unrealized loss/(gain) on financial
   derivatives mark to market                       130,225                 0
  Loss/(gain) on disposition of assets               13,520           (20,388)
  Deferred income taxes                           2,932,973           824,188
  Accrued interest expense                         (174,430)                0
  Change in operating assets and liabilities:
  Accounts receivable                              (627,031)       (3,630,029)
  Notes receivable                                   35,000         1,000,000
  Inventories                                    (1,335,766)        1,248,978
  Income tax payable/receivable                           0           (10,000)
  Prepaid expenses                                  (45,448)          (17,772)
  Accounts payable                                 (501,090)          172,639
  Accrued liabilities                                91,009           415,662

  Net cash provided by operating activities       8,381,396         4,608,290

Cash flows from investing activities:
  Proceeds from sale of equipment                         0            22,000
  Acquisition of property, plant and equipment   (3,336,862)         (956,869)
  Decrease (increase) in other non-current assets       625          (900,430)

  Net cash used in investing activities          (3,336,237)       (1,835,299)

Cash flows from financing activities:
  Proceeds from long-term debt                            0        20,000,000
  Payments on long-term debt                     (4,544,638)         (500,001)
  Proceeds from exercise of stock options           415,624            33,438
  Payments on revolving lines-of-credit                   0       (16,900,000)
  Payments on capital lease obligations            (418,328)         (387,890)
  Acquisition of Treasury Stock                    (532,139)                0
  Increase (decrease) in other
   non-current liabilities                            7,394            18,573

  Net cash (used) provided by
   financing activities                          (5,072,087)        2,264,120

  (Decrease)/increase in cash and
   cash equivalents                                 (26,928)        5,037,111

Cash and cash equivalents:
  Beginning of period                             4,886,011           330,672
  End of period                                $  4,859,083      $  5,367,783

<FN>
                  See accompanying notes to financial statements.

</TABLE>

<PAGE>


                              HIGH PLAINS CORPORATION
                       Selected Notes to Financial Statements

1) Basis of Presentation

The accompanying financial statements have been prepared by High Plains
Corporation ("Company") without audit.  In the opinion of management, all
adjustments (which include only normally occurring adjustments) necessary
to present fairly the financial position,  results of operations and
changes in financial position for the periods presented, have been made.

Certain information and footnote disclosures normally included in financial
statements prepared in accordance with generally accepted accounting
principals have been condensed or omitted.  The results of operations for
the period ended March 31, 2001 are not necessarily indicative of the
operating results for the entire year.

2) Financial Arrangements

On December 3, 1999, the Company was able to obtain a $28 million credit
facility through Bank of America.  The credit facility consisted of a $20
million term loan and a $8 million revolving line-of-credit.  The credit
facility is for a five-year period, which may be extended for a series of
one-year renewals.  The Company, on February 23, 2001, entered into its
second amendment to the original loan agreement with Bank of America, thus
enabling the company to proceed with the York, Nebraska facility's fuel
grade expansion project.  The second amendment included a provision that
established a $5 million reserve against the Company's revolving line-of-
credit.  However, the reserve is reduced by suppressed availability, if
any, determined by the borrowing base calculation used to determine the
credit availability under the revolving line-of-credit.  As of March 31,
2001, the revolving line-of-credit had a $10.4 million collateral base of
which $2.4 million was suppressed, thus yielding a net reserve of $2.6
million.  Therefore, the Company had $5.4 million of credit availability
on its revolving line-of-credit at March 31, 2001.

3) Stock Options

On February  22, 2001, 15,000 options were granted at $3.125 per share to
current directors under the reload provisions of the original option
grant.  On March 5, 2001, 2,500 options were granted at $3.00 per share to
executive management under the reload provisions of the original option
grant.  On March 26, 2001, 10,000 options were granted at $2.94 per share
to executive management under the reload provisions of the original option
grant.  All the aforementioned option grants were made at the fair market
value of the stock on the date of grant. During the quarter ended March 31,
2001, 206,283 options were exercised by current and former employees
and directors.

4) Stock-Based Compensation

The Company continues to account for stock-based compensation for
employees using the intrinsic value method prescribed in APB No. 25.
Accordingly, compensation cost for stock options is measured as the
excess, if any, of the quoted market price of the Company's stock at the
date of grant over the amount an employee must pay to acquire the stock.


<PAGE>


Had compensation cost for the stock-based compensation been determined
based on the fair value grant date, consistent with the provisions of FAS
123, the Company's net earnings and diluted earnings per share above would
have been reduced to pro forma amounts below:

<TABLE>
<CAPTION>
For the three months ending
March 31,                               2001            2000
  <S>                              <C>             <C>
  Net earnings
    As reported                    $  1,246,707    $  1,194,532
    Pro forma                         1,170,805       1,170,422

  Diluted earnings per share
    As reported                    $        .08    $        .07
    Pro forma                               .07             .07



For the nine months ending
March 31,                               2000            2001

  Net earnings
    As reported                    $  4,888,288    $  1,373,647
    Pro forma                         4,760,139       1,168,039

  Diluted earnings per share
    As reported                    $        .30    $        .08
    Pro forma                               .29             .07

</TABLE>

The Company's basic earnings per share for the pro forma information noted
above is the same as the Company's diluted earnings per share for all the
periods disclosed.


5) Earnings Per Share

The diluted earnings per share for the three months ended March 31, 2001
and 2000 have been calculated based on 16,542,146 and 16,316,561 diluted
shares outstanding, respectively.  The diluted earnings per share for the
nine months ended March 31, 2001 and 2000 have been calculated based on
16,369,495 and 16,169,130, respectively.  The Company's diluted earnings
per share in the financial statements above are the same as the basic
earnings per share for each of the periods disclosed.


6) Inventories

<TABLE>
<CAPTION>
                                        March 31, 2001      June 30, 2000
<S>                                      <C>                 <C>
Inventories consisted of the
  following components:
  Raw Materials                          $  1,288,939        $  1,276,938
  Hedged grain costs                          524,863                   0
  Work in progress                            501,642             493,064
  Finished goods                            1,924,307           1,469,053
  Spare parts                               1,641,903           1,044,506

Total                                    $  5,881,654        $  4,283,561

</TABLE>

<PAGE>


7) Other comprehensive income

Under FASB Statement No. 130, Reporting Comprehensive Income, the Company
is required to report the total of other comprehensive income as a
component of equity that is displayed separately from retained earnings
and additional paid-in capital whenever such items exist at the end of the
accounting period.  In addition, the Company must also present a Statement
of Comprehensive Income that presents other comprehensive income items as
adjustments to the Company's net income after tax results, net of tax.

<TABLE>
<CAPTION>
                                        Pre-tax      Tax Expense    Net-of-Tax
                                         Amount       (Benefit)       Amount
<S>                                   <C>           <C>           <C>
Other comprehensive income/(expense)
 consisted of the following components:
  Grain derivatives                   $  (222,925)  $  (83,597)   $  (139,328)
  Unleaded gasoline derivatives       $   (22,470)  $   (8,426)   $   (14,044)

                                          Grain        Unleaded      Gasoline
                                       Derivatives    Derivatives      Total

Balance, beginning                    $  306,165    $        0    $   306,165
Current period change                 $ (445,493)   $  (14,044)   $  (459,537)

Balance, ending                       $ (139,328)   $  (14,044)   $  (153,372)

</TABLE>


8) Commitments, derivatives and hedging activities

During the first quarter of fiscal 2000, the Company adopted the
provisions of FASB Statement No. 133, Accounting for Derivative
Instruments and Hedging Activities (SFAS 133).  The adoption of this
pronouncement did not have a material effect on the financial statements
at March 31, 2001.  SFAS 133 requires the Company to recognize all
derivatives on the balance sheet at fair value.  Derivatives that are not
hedges must be adjusted to fair value through income.  If the derivatives
qualify as hedges of recognized assets, liabilities or firm commitments
under SFAS 133, changes in the fair value of derivatives are offset
against the changes in fair value of assets, liabilities, or firm
commitments through earnings.  If the derivatives qualify as cash flow
hedges of forecasted transactions, then changes in the fair value of the
derivatives are recognized in other comprehensive income until the hedged
item is recognized in earnings.  The ineffective portion of the
derivative's change in fair value, if any , will be immediately recognized
in earnings.


<PAGE>


The Company routinely enters into forward contracts for grain purchase
requirements.  Some of these forward contracts are unpriced, subject to
market fluctuations, and some of them are priced.  The Company's fixed
priced forward contracts for purchases of normal grain requirements are
not considered derivatives and, accordingly, changes in the market value
of such contracts are not recognized; instead, the fixed price cost of the
grain is included in cost of goods sold at the time the grain is consumed
in the conversion process.

During the quarter ended March 31, 2001, the Company entered into a
six-month forward variable priced fuel ethanol sales contract for 2.4 million
gallons, that was indexed to the average daily price of unleaded gasoline, as
reported at Chicago Platt's pipeline.  The contract sets the price of
deliveries weekly based on the corresponding week's daily average unleaded
gasoline price plus a fixed spread. To protect against the risk of lower
unleaded gasoline prices, which would adversely affect the forward sales
contract pricing, and to establish a known net delivered contract price on
the associated fuel grade ethanol deliveries, the Company sold unleaded
gasoline futures to cover approximately one-fourth of the variable
priced contract.

As of and during the quarter ended March 31, 2001, the Company held
derivative positions accounted for as cash flow hedges of its forecasted
grain purchase requirements and forward ethanol sales commitments, under
SFAS 133.  The resulting net gain or loss from such derivatives is
reported in cost of goods sold when the related grain purchase or ethanol
sales transaction occurs.  The grain and unleaded gasoline derivative
gains or losses reflected in other comprehensive income at March 31, 2001,
will be recognized in earnings during the subsequent time period when the
related forecasted grain or ethanol sales transaction occurs, generally
during the subsequent quarter.  The Company does not hedge all of its
forecasted grain or forward variable priced ethanol sales transactions.
Currently, the maximum length of time over which the Company is hedging
forecasted grain purchase transactions with derivative positions is one
quarter.


9) Nonrecurring Items

Net sales and revenues reported for the nine month period ended March 31,
2001, included $1,814,628 of proceeds from the state of Nebraska's ethanol
producer incentives program.  These funds were received pursuant to the
Company's amended agreement with the state of Nebraska; no further
incentive payments are available under the Company's amended agreement.



<PAGE>


Part I           MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                 FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Item 2.

Forward-looking Statements

Forward-looking statements in this Form 10-Q, future filings including but
not limited to, the Company's annual 10K, Proxy Statement, and 8K filings
by the Company with the Securities and Exchange commission, the Company's
press releases and oral statements by authorized officers of the Company
are intended to be subject to the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995.  Investors are cautioned that
all forward-looking statements involve risks and uncertainty, including
without limitation,  the risk of a significant natural disaster, the
inability of the Company to ensure against certain risks, the adequacy of
its loss reserves, fluctuations in commodity prices, change in market
prices or demand for motor fuels and ethanol, legislative changes
regarding air quality, fuel specifications or incentive programs, as well
as general market conditions, competition and pricing.  The Company
believes that forward-looking statements made by it are based upon
reasonable expectations.  However, no assurances can be given that actual
results will not differ materially from those contained in such forward-
looking statements.  The words "estimate", "anticipate", "expect",
"predict", "believe" and similar expressions are intended to identify
forward-looking statements.


Nine Months Ended March 31, 2001 and 2000

Net Sales and Operating Expenses.

Net sales and revenues for the nine months ended March 31, 2001, were
39.4% higher than net sales for the same period ended March 31, 2000.
During the nine months ended March 31, 2001, approximately 58.0 million
gallons of fuel grade ethanol were sold at an average price of $1.32 per
gallon compared to 51.3 million gallons sold at an average price of $1.03
per gallon, for the same period ending March 31, 2000.  Fuel grade ethanol
sales included 11.0 million gallons of brokered fuel grade ethanol
(marketed on behalf of other producers) for the nine months ended March 31,
2001 compared to 2.4 million gallons of brokered fuel grade ethanol
for the same period ended March 31, 2000.  In addition, approximately 8.1
million gallons of industrial/beverage grade ethanol were sold at an
average price of $1.49 per gallon during the nine months ended March 31,
2001 compared to approximately 5.6 million gallons sold at $1.43 per
gallon for the same period ended March 31, 2000. Industrial/beverage grade
ethanol sales included 1.2 million gallons of brokered industrial/beverage
grade ethanol (marketed on behalf of other producers) for the nine months
ended March 31, 2001 compared to 1.4 million gallons of brokered
industrial/beverage grade ethanol for the same period ended March 31,
2000.  Fuel grade gallons sold during the nine months ended March 31, 2001
increased by approximately 13% compared to the same period ended March 31,
2000, while industrial/beverage grade gallons sold during the similar
period increased 45% compared to the same period ended March 31, 2000.
The increase in industrial/beverage grade gallons was primarily due to
increased marketing efforts in that segment of the Company's business.


<PAGE>


Whereas, the increase in fuel grade ethanol volume was the direct result
of the 358% increase in brokered fuel grade ethanol.  The increase in net
sales revenue resulted from increased volumes and a 28% increase in the
sales price of fuel grade ethanol, which stemmed from favorable blending
economics and mandated oxygenate market demand in the latter two-thirds of
the period. Included in the Company's net sales and revenues were
$2,559,226 and $2,471,779 of state producer incentive payments from Kansas
and Nebraska for the nine-month period ended March 31, 2001 and 2000,
respectively.  Current year incentives include a one-time $1,814,668
incentive from the state of Nebraska for increased production capacity,
which expired as of December 28, 2000.  The Company's Portales, New Mexico
facility contributed $17,485,006 and $13,864,373 of net sales and revenues
for the nine-month period ended March 31, 2001 and 2000, respectively.

Cost of products sold as a percentage of net sales and revenues was 89.0%
and 92.5% for the nine months ended March 31, 2001 and 2000, respectively.
The decrease in the cost of products sold as a percentage of net sales and
revenues was due to higher fuel grade and industrial beverage grade
ethanol net-backs (sales price less freight) together with decreased
average grain prices. Current fiscal year average net-backs increased
$0.32 and $0.11 per gallon on fuel grade and industrial/beverage grade
ethanol, respectively, compared to prior fiscal year.  Average per bushel
grain costs declined to $1.92 for the nine months ended March 31, 2001,
down from $1.95 for the same period ended March 31, 2000.  These gains
were offset by significantly higher natural gas costs compared to the same
period a year ago.  Natural gas prices averaged $4.81 per MMBTU (million
British Thermal Units) during the nine months ended March 31, 2001, up
from $2.40 per MMBTU for the same period ended March 31, 2000.  The
Company's Portales, New Mexico facility contributed $15,721,659 and
$14,024,724 of cost of products sold for the nine-month period ended March
31, 2001 and 2000, respectively.

Selling, general and administrative (SG&A) expenses increased 17.1% for
the nine months ended March 31, 2001, compared to the same period ended
March 31, 2000.   This increase is the result of an increase in
administrative salary and benefit expenses resulting from an increase in
staff, increased travel related expenses, increased licenses, permits,
dues, and subscriptions, and increased professional fees resulting from
glycerol side-stream research.

Net Earnings.

Net earnings increased $3.5 million for the nine months ended March 31,
2001, compared to net earnings for the same period in 2000.  Net earnings
as a percentage of net sales and revenues increased from 1.8% to 4.6%.
The increase is due to an increase in the Company's gross profit, from
higher net-backs and lower grain costs, net of higher deferred tax
expenses for the period ended March 31, 2001 compared to the same period
ended March 31, 2000.  Diluted earnings per share at March 31, 2001, were
$0.22 per share higher than diluted earnings per share for the same period
in 2000 due to the increased earnings. The Company's Portales, New Mexico
facility contributed $1,763,347 and ($160,351) of plant operating margin
before taxes, allocated overhead and interest expense for the six-month
period ended March 31, 2001 and 2000, respectively.


<PAGE>


Three Months Ended March 31, 2001 and 2000

Net Sales and Operating Expenses.

Net sales and revenues for the three months ended March 31, 2001,
increased 45.6% compared to the same period ended March 31, 2000.  During
the quarter ended March 31, 2001, approximately 21.4 million gallons of
fuel grade ethanol were sold at an average price of $1.37 per gallon
compared to approximately 17.1 million gallons sold at an average price of
$1.11 per gallon, for the same period ending March 31, 2000.  Fuel grade
ethanol sales included 4.6 million gallons of brokered fuel grade ethanol
(marketed on behalf of other producers) for the quarter ended March 31,
2001 compared to .8 million gallons of brokered fuel grade ethanol for the
same period ending March 31, 2000.  In addition, approximately 3.6 million
gallons of industrial/beverage grade ethanol were sold at an average price
of $1.53 per gallon during the quarter ended March 31, 2001 compared to
approximately 2.8 million gallons sold at $1.38 per gallon for the same
period ending March 31, 2000. Industrial/beverage grade ethanol sales
included .3 million gallons of brokered industrial/beverage grade ethanol
for the quarter ended March 31, 2001 compared to .6 million gallons of
brokered industrial/beverage grade ethanol for the same period ending
March 31, 2000.  Fuel grade gallons sold during the quarter ended March 31,
2001 increased approximately 24.8% compared to the same period in
2000.  Industrial/beverage grade gallons sold during the quarter ended
March 31, 2001 increased approximately 28.6% compared to the same period
in 2000. The fuel grade ethanol market demand was very strong for the
quarter ended March 31, 2001, due to favorable blending economics and
mandated oxygenate market demand.  The Company's fuel grade ethanol sales
volume increases were primarily driven by the increased brokered volume
for the comparable periods.  Industrial/beverage grade gallons increased
primarily in response to increased marketing efforts in that segment of
the Company's business.  The higher net sales were the result of increased
volumes in both grades of ethanol and a 23.4% increase in the average
delivered price of fuel grade ethanol. Included in the Company's net sales
and revenues were $314,785 and $337,663 of state producer incentive
payments from Kansas for the quarter ended March 31, 2001 and 2000,
respectively.  The Company's Portales, New Mexico facility contributed
$6,610,359 and $5,491,776 of net sales and revenues for the periods ended
March 31, 2001 and 2000, respectively.

Cost of products sold as a percentage of net sales and revenues was 92.0%
and 89.2% for the three months ended March 31, 2001 and 2000,
respectively.  The cost of products sold as a percentage of net sales and
revenues for the quarter ended March 31, 2001 increased compared to the
same period in 2000.  The increase was due to higher average grain prices
and increased natural gas costs for the comparable periods. Natural gas
prices averaged $5.14 per MMBTU (million British Thermal Units) during the
three months ended March 31, 2001, up from $2.38 per MMBTU for the same
period ended March 31, 2000. The average cost of grain increased to $2.06
per bushel for the quarter ended March 31, 2001, compared to $1.96 per
bushel for the same quarter in 2000.  The unfavorable price moves, in
natural gas and grain, were partially offset by higher average net-backs
for both fuel and industrial/beverage grade ethanol. Current quarter
average net-backs increased $0.16 per gallon on both fuel grade and
industrial/beverage grade ethanol for comparable periods. The Company's
Portales, New Mexico facility contributed $6,126,101 and $5,075,356 of
cost of goods sold for the periods ended March 31, 2001 and 2000,
respectively.


<PAGE>


Selling, general and administrative (SG&A) expenses increased 45.8% for
the quarter ended March 31, 2001, compared to the same period ended March
31, 2000.  This increase is the result of an increase in administrative
salary and benefit expenses resulting from an increase in staff, increased
licenses, permits, dues, and subscriptions,  increased bad debt reserve,
and increased research and development expenses resulting from the
glycerol side-stream research.

Net Earnings.

Net earnings increased slightly for the three months ended March 31, 2001,
compared to net earnings for the same period ended March 31, 2000.  Net
earnings as a percentage of net sales and revenues decreased from 4.3% to
3.1% for the comparable periods. The decrease is due to an decrease in the
Company's gross profit, from higher average grain prices and increased
natural gas costs for the period ended March 31, 2001 compared to the same
period ended March 31, 2000.  Diluted earnings per share at December 31,
2000, were $0.08 per share, or $.01 per share higher than diluted earnings
per share for the same period in 2000 due to the increased earnings.  The
Company's Portales, New Mexico facility contributed $484,258 and $416,420
of operating margin before taxes, allocated overhead and interest for the
periods ended March 31, 2001 and 2000, respectively.


Liquidity and Capital Resources

The Company's primary source of funds during the quarter ended March 31,
2000 was cash flow from operating activities.  At March 31, 2001, the
Company had working capital of approximately $9.9 million compared to
working capital of approximately $7.3 million for the period ended June 30,
2000.  The increase in working capital was primarily due to increases
in trade receivables and inventories.  The Company's inventory increase is
due to increases in deferred hedging costs and spare parts inventory.

Capital expenditures through March 31, 2001 amounted to approximately $3.3
million for modifications to the Company's three plants compared to
approximately $1.0 million for the same period in fiscal 2000.  The
majority of the current fiscal year's expenditures relate to modifications
to the Company's Colwich, Kansas facility, which acquired new dryers for
increased output and more reliable operations, and York, Nebraska
facility, which is under going a twelve million gallon expansion.


<PAGE>


On December 3, 1999, the Company was able to obtain a $28 million credit
facility through Bank of America.  The credit facility consisted of a $20
million term loan and a $8 million revolving line-of-credit.  The credit
facility is for a five-year period, which may be extended for a series of
one-year renewals.  The company, on February 23, 2001, entered into its
second amendment to the original loan agreement with Bank of America, thus
enabling the company to proceed with the York, Nebraska facility's fuel
grade expansion project.  The second amendment included a provision that
established a $5 million reserve against the Company's revolving line-of-
credit.  However, the reserve is reduced by suppressed availability, if
any, determined by the borrowing base calculation used to determine the
credit availability under the revolving line-of-credit.  As of March 31,
2001, the revolving line-of-credit had a $10.4 million collateral base of
which $2.4 million was suppressed, thus yielding a net reserve of $2.6
million.  Therefore, the Company had $5.4 million of credit availability
on its revolving line-of-credit at March 31, 2001.The Company believes it
has adequate short-term working capital and borrowing availability under
its financing arrangement to meet its operating cash needs.  However, in
the event the Company encounters unforeseen changes in market conditions
that adversely affect its ability to generate cash flow from operations,
the Company could seek to raise additional funds through the sale of
stock, or issuance of debt and/or equity securities.

The Company received its last production incentive payment under its
amended agreement with the state of Nebraska in the second quarter of
fiscal 2001.  The Company received $1,814,628 under the amended agreement.
The impact of the loss of the Nebraska incentive on the Company's
liquidity was mitigated by increased profitability and continued emphasis
on diversifying the Company's York, Nebraska facility's products.
However, in the future the lack of the incentive could substantially and
negatively impact the Company's liquidity position.  The Company continues
to improve efficiencies, to implement cost controls, and focus efforts on
expanding its presence in the higher margin industrial/beverage grade
markets to assist in improving the Company's liquidity and earnings.



Seasonality

Fuel grade ethanol prices are historically soft during the non-oxygenate
period, which coincides with the Company's first and fourth fiscal
quarters.  Typically fuel grade ethanol prices firm up during the winter
months, which coincide with the Company's second and third fiscal
quarters, due to the mandated markets of the Federal Oxygen Program.
Prices generally increase in the weeks before September, and decrease by
March due to shipping schedules.  Additionally, fuel grade ethanol prices
historically have been influenced by the price of unleaded gasoline, which
remained strong during the first three-quarters of fiscal 2001.  Due to
the continued strength of the unleaded gasoline market and demand from
oxygenated fuel program, fuel grade ethanol pricing remained strong
throughout the third quarter of fiscal 2001.  With the summer blending
season commencing, ethanol prices tend to soften but with many analysts
projecting continued strength in the oil markets, management believes fuel
ethanol pricing will remain at the current levels or move up slightly
throughout the Company's fiscal fourth quarter.  Furthermore, the Company
has contracted approximately seventy five percent of its fuel grade
ethanol production through September 2001 at fixed prices, thus minimizing
the Company's exposure in the event of an unforeseen downturn in the
market, but conversely limiting the Company's ability to gain from
additional market increases.  Currently, there is legislation pending
which could significantly affect the demand for fuel grade ethanol either
positively or negatively.  Current legislation is attempting to deal with
the perceived problems surrounding the MTBE environmental contamination
issues by phasing out MTBE over the next several years, eliminating the
oxygenate requirement, and implementing a minimum renewable fuels content
for all fuel consumed, excluding diesel.  As of March 31, 2001, no such
legislation had been enacted.


<PAGE>


Grain prices also continue to be favorable for the ethanol industry.
Although corn and milo feedstock prices have increased somewhat from
harvest lows, market fundamentals (projected crop size, carryouts, export
and demand numbers) appear to favor continued low grain prices through the
next crop year.  As always, grain prices are subject to significant
changes due to weather patterns, or in the event of changes in the
fundamental market factors described above.  The Company has currently
contracted approximately 9.6 million bushels under either fixed priced
forward contracts, or unpriced basis differential forward contracts which
will be priced at a later date. The Company continues to utilize grain
futures contracts to hedge against price fluctuations related to its grain
feedstock requirements.  Current market conditions and carry from
previously contracted grain indicates the Company may have slightly higher
grain cost during the fourth quarter of fiscal 2001 compared to the prior
quarters in fiscal 2001.

Natural gas spot market prices have tripled from year ago levels.
Industry analysts believe this is a complicated situation that has been in
progress for several years.  Currently, demand for natural gas is
outpacing the supply and current inventories are near all time lows, and
there appears to be no short-term solutions to the supply imbalance.  The
problem stems from demand incentives that were built into the market, to
encourage use of the clean burning fuel, without any true supply
incentives to induce additional exploration for new supply.  Now, existing
domestic wells are thought to be producing at approximately fifty percent
of their original capacity and the U.S. is now importing natural gas from
Canada to meet its growing needs.  The natural gas pipeline network does
not currently have adequate capacity, or in some cases conduits, necessary
to move natural gas from areas with abundant supply to areas with
deficits, thus further exasperating the supply problems.  Some analyst
believe these current conditions could persist for the next several years
until new production comes on-line and additional distribution
infrastructure is constructed.  It is the Company's belief that natural
gas will trade in the $4.00 per MMBTU to $6.00 per MMBTU range for the
next several years, and as in the past three quarters prices could spike
to in excess of $10 per MMBTU from time to time in periods of high demand.
The Company believes that through forward contracting its natural gas
needs it can mitigate the price risk associated with the volatile spot
market price moves caused by demand surges from inclimate weather, co-
generation or supply disruptions that have affected the spot market prices
so dramatically in the first three quarters of fiscal 2001.

Prices for the Company's distillers grain by-products, also known as
distillers grain solubles (DGS), historically fluctuate with the price of
corn, and provide the Company with some hedge against the possibility of
higher grain prices.  With grain prices increasing from prior periods,
protracted winter, and feed supply shortages, DGS prices firmed up in the
third quarter of fiscal 2001.  The Company has emphasized production of a
wet distillers grain product (WDGS) at its facilities in an effort to
strengthen and stabilize its feed markets.  The Company believes the feed
markets are starting to recognize the true value in the Company's feed co-
products, thus it believes there is an opportunity to sustain the firmer
pricing in the near term future.  However, softening in the prices of feed
alternatives, such as corn, could result in some decline in prices for the
Company's DGS products.


<PAGE>


PART II                     OTHER INFORMATION

Item 1.  LEGAL PROCEEDINGS

No new legal proceedings were instigated during the quarter ended March 31,
2001, which would have a materially negative impact on the Company's
financial condition or which would be considered other than in the
ordinary course of the Company's business.

Item 2.  CHANGES IN SECURITIES

Not Applicable

Item 3.  DEFAULTS UPON SENIOR SECURITES

Not Applicable

Item 4.  SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

Not Applicable

Item 6.  EXHIBITS AND REPORTS ON FORM 8-K

  a).  Exhibit 27-1     Financial Data Schedule
  b).  Reports on Form 8-K.  During the quarter for which this report
       is filed, the company filed the following Form 8-K's:

  January 18, 2001  Company announced second quarter earnings and earnings
  per share for the period ending December 31, 2001.

  January 25, 2001  Company projects fiscal 2001 third quarter earnings
  per share range of $.08 to $.10 per share.

  March 13, 2001  Company provides update on pending legislation that
  might affect ethanol industry.

  April 9, 2001    Company provides update on York, Nebraska facility
  expansion and status of stock repurchase program.

  April 16, 2001  Company announced third quarter earnings and earnings
  per share for the period ending March 31, 2001.