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 September 30, 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 September 30, 2001  - 16,400,890


<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

Statement of Cash Flows                                           7

Selected Notes to Financial Statements                          8 - 10


Item 2.   MANAGEMENT'S DISCUSSION AND ANALYSIS
          OF FINANCIAL CONDITION AND RESULTS OF
          OPERATIONS                                           10 - 12

PART II   OTHER INFORMATION

Item 3.  Legal Proceedings                                        12

Item 4.  Other Information                                        12

Item 5.   Exhibits and Reports on Form 8-K                     12 - 14


<PAGE>
<TABLE>
<CAPTION>
                             HIGH PLAINS CORPORATION
                                 Balance Sheets
                                   (Unaudited)
                       September 30, 2001 and June 30, 2001



Assets                                September 30, 2001     June 30, 2001
                                          (Unaudited)              **
<S>                                       <C>                 <C>
Current Assets:
  Cash and cash equivalents               $  --               $  6,097,284
  Accounts receivable
   Trade (less allowance of $75,000)        12,834,269          11,936,169
   Production credits and incentives           242,496             278,462
Inventories                                  6,266,878           6,027,036
Notes Receivable                                    --              15,000
Prepaid expenses                             1,584,961             504,410
Refundable income tax                           16,900              16,900
    Total current assets                    20,945,504          24,875,261


Property, plant and equipment, at cost:
  Land and land improvements                   450,403             450,403
  Ethanol plants                           106,744,880          95,817,355
  Other equipment                              496,614             496,614
  Office equipment                             438,025             411,740
  Leasehold improvements                        48,002              48,002
  Construction in progress                   1,989,593           6,600,789
  Sub-total                                110,167,517         103,824,903
  Less accumulated depreciation            (35,885,088)        (34,847,298)
  Net property, plant and equipment         74,282,429          68,977,605

Other assets:
  Deferred loan costs (less accumulated        642,913             693,586
  amortization of $381,704 and $331,031,
  respectively)
  Other                                         47,306              40,069
  Total other assets                           690,219             733,655

                                         $  95,918,152       $  94,586,521


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

</TABLE>


<PAGE>
<TABLE>
<CAPTION>

                             HIGH PLAINS CORPORATION
                                  Balance Sheets
                                   (Unaudited)
                       September 30, 2001 and June 30, 2001


Liabilities and Stockholders Equity       September 30, 2001   June 30, 2001
                                              (Unaudited)            **
<S>                                           <C>               <C>
Current Liabilities:
  Current portion of long-term debt           $  2,250,000      $  3,928,148
  Current maturities of capital leases             618,781           607,206
  Due to Bank                                      375,349                --
  Accounts payable                              14,347,792        13,270,462
  Accrued interest                                 419,029           178,227
  Accrued payroll and property taxes               949,605         1,441,738
    Total current liabilities                   18,960,556        19,425,781


Long-term debt                                  11,080,360         9,964,712
Capital lease obligations, less
 current maturities                                182,328           341,433
Deferred income tax payable                      5,248,874         4,979,836
    Total non-current liabilities               16,511,562        15,285,981


Stockholders' Equity:
  Common stock, $.10 par value, authorized
   50,000,000 shares; issued 16,877,074 and
   16,778,574 shares at September 30, 2001 and
   June 30, 2001, respectively, of which 476,184
   and 276,847 were held as treasury stock at
   September 30, 2001 and June 30, 2001,
   respectively.                                 1,687,707         1,677,857
  Additional paid-in capital                    38,644,826        38,443,851
  Retained earnings                             21,090,693        21,029,645
  Accumulated other comprehensive
  income (loss):
   Cash flow hedge derivatives (net of
   $209,893 and ($20,164) income taxes)            328,295           (33,607)
                                                61,751,521        61,117,746


Less:
  Treasury stock-at cost                        (1,305,487)       (1,242,987)
  Total stockholders' equity                    60,446,034        59,874,759

                                             $  95,918,152     $  94,586,521

<FN>

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


</TABLE>


<PAGE>

<TABLE>
<CAPTION>
                             HIGH PLAINS CORPORATION
                             Statement of Operations
                                   (Unaudited)
                   Three Months Ended September 30, 2001 and 2000

                                          Three Months Ended
                                             September 30,
                                       2001                2000
<S>                               <C>                  <C>
Net sales and revenues            $  43,237,455        $  29,181,796
Cost of goods sold                   42,008,612           25,909,342
  Gross profit                        1,228,843            3,272,454

Selling, general and
administrative expenses                 834,377              804,813
  Operating income/(loss)               394,466            2,467,641

Other income/(expense):
  Interest expense                     (349,286)            (489,302)
  Interest and other income              55,189               97,816
  Gain (loss) on sale of assets            (340)                   0
                                       (294,437)            (391,486)
Net income before income taxes          100,029            2,076,155

Income tax expense                      (38,981)            (778,558)

Net earnings                          $  61,048         $  1,297,597

Basic and diluted earnings
 per share                            $     .00         $        .08


<FN>

                 See accompanying notes to financial statements.
</TABLE>

<PAGE>

<TABLE>
<CAPTION>
                             HIGH PLAINS CORPORATION
                        Statement of Stockholders' Equity
                                   (Unaudited)
                       Three Months Ended September 30, 2001

                     Common Stock
                       (Issued)
                                       Additional                           Accumulated
                  Number of              Paid-In  Comprehensive Retained Other Comprehensive   Treasury
                    Shares    Amount     Capital     Income     Earnings       Income           Stock       Total
<S>              <C>        <C>        <C>         <C>          <C>           <C>            <C>          <C>
Balance,
 June 30, 2001   16,778,574 $1,677,857 $38,443,851              $21,029,645   $ (33,607)     $(1,242,987) $59,874,759
 Exercise of
  stock options      98,500      9,850     200,975                                                            210,825
 Grain
  derivatives                                      $ 361,902                    361,902                       361,902

Acquisition of
 Treasury Stock                                                                                  (62,500)     (62,500)

Net earnings
 for quarter                                          61,048         61,048                                    61,048
Comprehensive
 income                                            $ 422,950
Balance,
 September 30,
 2001            16,877,074 $1,687,707 $38,644,826              $21,090,693   $ 328,295      $(1,305,487) $60,446,034

                   See accompanying notes to financial statements.

</TABLE>

<PAGE>

<TABLE>
<CAPTION>

                             HIGH PLAINS CORPORATION
                             Statement of Cash Flows
                                   (Unaudited)
                  Three Months Ended September 30, 2001 and 2000

                                                      2001            2000
<S>                                              <C>             <C>
Cash flows from operating activities:
  Net earnings                                   $    61,048     $  1,297,597
  Adjustments to reconcile net earnings to
   net cash provided by operating activities:
  Depreciation and amortization                    1,089,258          981,664
  Amortization of deferred compensation                    -            4,208
  Loss on sale of equipment                              340                -
  Gain on cash flow hedge derivatives                541,497                -
  Deferred income taxes                               38,981          778,558
Change in operating assets and liabilities:
  Accounts receivable                               (819,284)         982,198
  Notes receivable                                    15,000                -
  Inventories                                       (239,842)        (736,140)
  Prepaid expenses                                (1,080,551)        (233,499)
  Due to bank                                        375,349               --
  Accounts payable                                 1,077,330       (1,150,432)
  Accrued liabilities                               (251,331)         (13,602)

  Net cash provided by operating activities          807,795        1,910,552

Cash flows from investing activities:
  Acquisition of property, plant and equipment    (6,343,749)        (878,217)
  Decrease (increase) in other non-current assets        375                -

  Net cash used in investing activities           (6,343,374)        (878,217)

Cash flows from financing activities:
  Payments on long-term debt                        (562,500)        (500,001)
  Payments on capital lease obligations             (147,530)        (136,861)
  Proceeds from exercise of stock options            210,825           41,251
  Increase (decrease) in other
   non-current liabilities                                 -            4,314
  Acquisition of treasury stock                      (62,500)               -

  Net cash used by financing activities             (561,705)        (591,297)

  Increase (decrease) in cash and
   cash equivalents                               (6,097,284)         441,038

Cash and cash equivalents:
  Beginning of period                              6,097,284        4,886,011

End of period                                    $        --     $  5,327,049


<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, unless otherwise noted.  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 September 30, 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 an $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.  On February 23, 2001, the Company 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.  At September 30, 2001, the Company's $8 million line-of-credit
had $7 million of unreserved availability which was fully available and
undrawn.

3) Stock Options

On July 18, 2001, 37,500 options were granted at $4.13 per share, as
reloads under the original provisions of the option grants, to key
management personnel and directors.  On July 30, 2001, 25,000 options were
granted at $4.30 per share, as reloads under the original provisions of
the option grants, to the president.  The option grants were made at the
fair market value of the stock on the date of grant. An additional 36,000
options were exercised during the quarter by a former employee.

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.

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
September 30,                                   2001             2000
  Net earnings/(loss)
    <S>                                      <C>             <C>
    As reported                              $  61,048       $  1,297,597
    Pro forma                                 (427,944)         1,257,908

  Basic earnings/(loss) per share
    As reported                              $     .00       $        .08
    Pro forma                                     (.03)               .08

  Diluted earnings/(loss) per share
    As reported                              $     .00       $        .08
    Pro forma                                     (.02)               .08

</TABLE>


<PAGE>


5) Earnings Per Share

The Company, as required under FASB Statement No. 128 Earnings Per Share
(FAS 128) has replaced the presentation of primary earnings per share
(EPS) with Basic EPS and Diluted EPS.  Under FAS 128 both the basic and
diluted must be presented in the financial statements.  Also, under the
FAS 128 all prior period EPS data presented in the financial statements
must be restated for comparative purposes.

The diluted earnings per share for the three months ended September 30,
2001 and 2000 have been calculated based on 17,118,441 and 16,347,207
diluted shares outstanding, respectively.

6) Inventories

<TABLE>
<CAPTION>
                                          September 30, 2001  June 30, 2001
Inventories consisted of the
 following components:
  <S>                                        <C>              <C>
  Raw Materials                              $  1,432,916     $  1,200,473
  Work in progress                                564,230          500,583
  Finished goods                                2,453,393        2,642,186
  Spare parts                                   1,816,339        1,683,794

  Total                                      $  6,266,878     $  6,027,036

</TABLE>

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
 consisted of the following
 components:
  Grain derivatives                   $  487,725   $  190,212     $  297,513
  Unleaded gasoline derivatives           50,463       19,681         30,782

                                      $  538,188   $  209,893     $  328,295

                                         Grain     Unleaded Gasoline
                                      Derivatives     Derivatives     Total

Balance, beginning                   $  (146,993)  $  113,386     $  (33,607)

  Current period change                  444,506   $  (82,604)    $  361,902

Balance, ending                      $   297,513   $   30,782     $  328,295

</TABLE>

8) Derivatives and hedging activities

During the first quarter of fiscal 2001, the Company adopted the
provisions of FASB Statement No. 133, Accounting for Derivative
Instruments and Hedging Activities (SFAS 133).  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>


Under the Company's grain and fuel ethanol risk management programs, the
Company routinely holds financial derivative positions on the Chicago
Board of Trade (CBOT) and New York Mercantile Exchange (NYMEX) to mitigate
the market price volatility associated with the Company's grain inputs and
fuel grade ethanol outputs.  These positions (short-NYMEX unleaded
gasoline futures and long-CBOT corn futures) are designated as cash flow
hedges of forecasted transactions at the inception of the transaction and
as such are accounted for under the provisions of SFAS 133.

The Company also routinely enters into forward contracts to procure its
grain purchase requirements and sell its anticipated fuel grade ethanol
production.  Some of these forward contracts are unpriced, subject to
market fluctuations, and some of them are priced.  The Company's fixed
priced forward contracts are not considered derivatives and, accordingly,
changes in the market value of such contracts are not recognized; instead,
the fixed price is recognized in the financials at the time the related
commodity is consumed in the conversion process or delivered to the
customer.  The Company does not enter into forward contracts in excess of
its anticipated future grain needs or fuel grade ethanol production
volumes.

As of and during the quarter ended September 30, 2001, the Company held
derivative positions accounted for as cash flow hedges of its forecasted
purchases and sales, under SFAS 133.  The resulting net gain or loss from
such derivatives is reported in cost of goods sold when the forecasted
transaction occurs.  The derivative gains or losses reflected in other
comprehensive income at September 30, 2001, will be recognized in earnings
during the subsequent time period when the related forecasted transaction
occurs, generally during the subsequent quarter.  The Company does not
hedge all of its forecasted commodity transactions.

9)  Segment Information

Segment information has been prepared in accordance with FASB SFAS No. 131
(SFAS 131), "Disclosures about Segments of an Enterprise and Related
Information."  Segments were determined based on products and services
provided by each segment.  Accounting policies of the segments are the
same as those described in the summary of significant accounting policies.
Performance of the segments is evaluated on gross profit before allocated
selling, general and administrative expenses and income taxes, excluding
other income and expenses. The Company believes its gross profit approach
for evaluating each segment's performance is a better indicator of the
segment's incremental contribution to the Company's performance.  This
approach mitigates the impact of subjective allocations of selling,
general, and administrative expense, which may or may not be incremental
in relation to the increased activity related to the segment.
Intersegment sales were made at prices approximating current market value.

The Company has two reportable segments: (1) ethanol production and
(2) ethanol marketing.  The ethanol production segment produces and sells
ethanol and its by-products.  The ethanol marketing segment actively
markets fuel ethanol purchased by the Company, in bulk, from independent
producers unrelated to the Company.  The Company has also contracted to
provide process and operational consulting services to select ethanol
producers, but provided no consulting services in fiscal years 1999
through 2001.

<TABLE>
<CAPTION>
                                          Ethanol      Ethanol
                                        Production    Marketing     Total

                  For the three months ended September 30, 2001
<S>                                    <C>           <C>           <C>
Net sales to external customers        $27,431,716   $15,805,739   $43,237,455
Intersegment sales                       1,576,241            --     1,576,241
Depreciation and amortization            1,089,258            --     1,089,258
Segment gross profit                     1,081,563       147,280     1,228,843
Segment assets                          92,204,746     4,191,944    96,396,690
Additions to property,
 plant and equipment                     6,072,749            --     6,072,749


</TABLE>

<PAGE>

<TABLE>
<CAPTION>

                   For the three months ended September 30, 2000
<S>                                    <C>           <C>           <C>
Net sales to external customers        $25,228,962   $ 3,952,834   $29,181,796
Intersegment sales                         804,016            --       804,016
Depreciation and amortization              981,664            --       981,664
Segment gross profit                     3,209,178        63,276     3,272,454
Segment assets                          84,669,869     1,214,468    85,884,337
Additions to property,
 plant and equipment                       878,217            --       878,217

</TABLE>


10)  Subsequent Event

On November 1, 2001, the Company signed an agreement with Abengoa, S.A. and
its wholly-owned subsidiary, ASA Environment and Energy Holding, A.G. (ASA),
for ASA to acquire all of the outstanding shares of the Company pursuant to
a cash tender offer at a price which is expected to be approximately $5.63
per share.  The transaction is subject to certain conditions, including the
tender of the Company's shares giving ASA at least 75% of the outstanding
shares of the Company's common stock on a fully diluted basis.


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.


<PAGE>

<TABLE>
<CAPTION>

Comparison of the three months ended September 30, 2001 and September 30, 2000
           (amounts in millions except averages and per unit prices)

                                                       Increase (Decrease)
                                      2001     2000     $ / Qty   Percent
<S>                                  <C>      <C>       <C>        <C>
Net sales and revenues               $ 43.2   $ 29.2    $ 14.0       48%

Gallons of fuel grade ethanol sold
 Proprietary production                15.1     15.4       (.3)      -2%
 Marketing/trading                     10.4      2.7       7.7      281%
   Total                               25.5     18.1       7.4       41%

Average sales price                  $ 1.41   $ 1.25    $ 0.16       13%

Gallons of industrial grade
 ethanol sold
 Proprietary production                 1.2      1.0       0.2       20%
 Marketing/trading                      0.5      0.4       0.1       20%
   Total                                1.7      1.4       0.3       21%

 Average sales price                 $ 1.61   $ 1.47    $ 0.14       10%

Production incentives included
 in net sales and revenues
 Kansas producers incentive program  $  0.2   $  0.2    $  0.0        0%
 Average per gallon                  $ 0.05   $ 0.08    $(0.03)


Distiller's grains and other
 by-product sales                    $  4.6   $  4.4    $  0.2        5%

Cost of products sold
 Cost of products sold as a
 percent of sales and revenues         97.2%    88.8%
 Average grain cost per bushel       $ 2.05   $ 1.83    $ 0.22       12%

Selling, general and
 administrative expenses             $  0.8   $  0.8    $  0.0        0%

Earnings
 Gross profit margin                    2.8%    11.2%
 Net income                          $ 0.06   $ 1.30    $(1.24)

</TABLE>


Results of Operations

Net Sales and Operating Expenses.

Net sales and revenues for the three months ended September 30, 2001,
increased 48% compared to the same period ended September 30, 2000.  The
increase was driven by higher average sales prices and increased trading
sales volume.  Fuel grade ethanol trading sales volume increased 281%
compared to trading sales volume for the same period ended September 30,
2000.  The trading sales volume increase resulted from both the Company's
trading strategy and unanticipated downtime at the Company's York,
Nebraska facility.  The Company continued to focus on its strategy of
trading other producers' ethanol output to better utilize its marketing
resources and better sever its core customers.  Lost production from the
protracted downtime necessary to complete the York, Nebraska facility
expansion tie-in and the subsequent extended start-up phase created
contract shortages that were fulfilled with trading volume.  Fuel grade
ethanol prices remained strong during the first quarter of fiscal 2002 at
an average price of $1.41 per gallon, which was a 13% increases over the
average price per gallon for the same period ended September 30, 2000.
Fuel grade ethanol's price strength resulted from higher gasoline prices,
tighter ethanol supplies, and a greater percent of sales based on variable
priced contracts compared to the same period ended September 30, 2000.
Industrial ethanol sales prices benefited from the higher fuel ethanol
sales prices, as increases in fuel ethanol generally translate into
increases to industrial ethanol prices.  Industrial ethanol prices
increased 10% compared to the same period ended September 30, 2000.


<PAGE>


Cost of products sold as a percentage of net sales and revenues increased
8.4% to 97.2% for the quarter ended September 30, 2001 compared to 88.8%
for the same period ended September 30, 2000.  The increases resulted from
increased trading volume, lower proprietary production volume, higher
grain prices, and higher natural gas prices compared to the same period
ended September 30, 2000.  Margins on the Company's trading volume are
generally significantly lower than margins on proprietary production.
With trading volume making up a larger percentage of the sales mix in the
first quarter of fiscal 2002 compared to first quarter of fiscal 2001, the
higher trading volumes effectively skewed up the cost of goods percentage
compared to the same period ended September 30, 2000.  The lost
proprietary production at the Company's York, Nebraska facility
contributed to the increase in cost of goods percentage.  The production
process has a considerable amount of fixed costs associated with it, thus
much of the York, Nebraska's facility's costs were incurred in the first
quarter of fiscal 2002 even though the facility's output was significantly
lower than its output in the first quarter of fiscal 2001.  Grain costs
increased $.22 per bushel compared to the same period ended September 30,
2000.  The increase in grain costs resulted from both higher Chicago Board
of Trade (CBOT) futures prices and higher local basis differentials
compared to the same period ended September 30, 2000.   Natural gas costs
increased from an average price of $4.03 per million British Thermal Unit
(MMBTU) in the first quarter of fiscal 2001 to an average price of $5.54
per MMBTU in the first quarter of fiscal 2002.

Selling, general and administrative (SG&A) expenses remained flat for the
quarter ended September 30, 2001, compared to the same period ended
September 30, 2000.

Net Earnings.

Net earnings decreased 95% for the three months ended September 30, 2001,
compared to net earnings for the same period ended September 30, 2000.
The decrease is the result of 8.4% decrease in gross profit percentage
compared to the same period ended September 30, 2000.  The decline in the
Company's gross profit percentage was primarily driven by the increase in
trading volume compared to the same period ended September 30, 2000, as
the Company's higher grain and natural gas costs were mostly offset by
higher average sales prices for the first quarter of fiscal 2002.  The
foregone production associated with the York, Nebraska facility expansion
was the principal driver of the decrease in net earnings.  Diluted
earnings per share at September 30, 2001, were $.08 lower than diluted
earnings per share for the same period in 2000 due to the decreased
earnings.

<TABLE>
<CAPTION>

Liquidity and Capital Resources
                                   (in 000's)

                               September 30,       June 30,     September 30,
                                    2001             2001            2000
<S>                              <C>               <C>            <C>
Cash provided by
 operating activities            $    0.8          $    N/A       $    1.9

Cash and cash equivalents              --               6.1            5.3

Working capital                       2.0               5.5            8.9

Capital expenditures                  6.3               N/A            0.9

</TABLE>

The Company's primary source of funds during the quarter ended September
30, 2001 was cash flow from operating activities.  Working capital
decreased approximately $3.5 million compared to the period ended June 30,
2001.  The decrease in working capital was due to a $6.1 million decrease
in cash and cash equivalents, which was partially offset by increases in
accounts receivable and prepaid expenses.  The majority of the cash was
used to fund the York, Nebraska expansion and annual turn-arounds at both
the York, Nebraska and Portales, New Mexico facilities.

Capital expenditures for the first three months of fiscal 2002 amounted to
approximately $6.3 million, which was primarily for the 14 million-gallon
expansion of the York, Nebraska facility.


<PAGE>


The Company has an $8 million revolving line-of-credit, which was a
component of the credit facility obtained through Bank of America in
December 1999. In February 2001, the Company amended the original loan
agreement to allow for the $10 million York, Nebraska expansion.  The
agreement stipulated a non-recoverable $2.6 million prepayment on the
Company's estimated fiscal 2001 excess cash flow recapture and placed a
$5.0 million reserve on the Company's revolver.  The reserve is reduced by
suppressed borrowing capacity, as determined by the monthly borrow base
certificate calculation.  At September 30, 2001, the Company's $8 million
line-of-credit had $7 million of unreserved availability which was fully
available and undrawn.  As of the end of the first quarter, the Company
was in violation of two covenant provisions of the loan agreement.
Subsequently, the Company amended the loan agreement with Bank of America
and in doing so obtained waivers for the two covenant violations. 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.

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 quarter of fiscal 2002.  Due to the
continued strength of the unleaded gasoline market and tight fuel ethanol
supplies, fuel grade ethanol remained uncharacteristically high through
the first quarter of fiscal 2002.  Now with the Company entering into the
oxygenate season, the Company believes fuel ethanol pricing will remain at
the current levels throughout the oxygenate season.  Furthermore, the
Company has contracted approximately 70% of its fuel grade ethanol
production through the March 2002 (end of oxygenate season) 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 September 30, 2001, no such legislation had been enacted.

Although corn and milo feedstock prices have increased somewhat over the
last several months, market fundamentals (projected crop size, carryouts,
export and demand numbers) appear to indicate flat or slightly higher
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 10 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.

Prices for the Company's distillers grain by-products, as 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.  As grain prices firmed up in the first quarter of
fiscal 2002, DGS prices strengthened in the first quarter of fiscal 2002.
The Company has emphasized production of a wet distillers grain product at
its facilities in an effort to strengthen and stabilize its feed markets.
However, unanticipated declines in grain prices could also result in a
decline in prices for the Company's DGS products.


                                     PART II
                                OTHER INFORMATION

Item 1.  LEGAL PROCEEDINGS

No new legal proceedings were instigated during the quarter ended
September 30, 2000, which would be considered other than in the ordinary
course of the Company's business.

Item 2.  CHANGES IN SECURITIES

Not Applicable


<PAGE>


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:

       July 12, 2001     Company announced initial agreements with four
                         independent ethanol producers to
                         market approximately sixty (60) million gallons
                         of their ethanol production.

       August 15, 2001   Company announced Fiscal 2001 earnings and Fiscal
                         2001 fourth quarter results.

       September 6, 2001 Company provides update on York, Nebraska
                         facility expansion.

       October 15, 2001  Company provides update on York, Nebraska facility
                         expansion and reports Gary Smith's appointment as
                         Chairman of the RFA.

       November 1, 2001  Company announces cash tender offer by Abengoa,
                         S.A. to acquire all the Company's
                         outstanding shares at approximately $5.63 per
                         share, plus assume $15 million of debt.

       November 5, 2001  Company announced Fiscal 2002 first quarter earnings.