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 December 31, 2000 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


<PAGE>

                             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 December 31, 2000  - 16,149,044


<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 - 14

PART II                        OTHER INFORMATION

Item 3.  Legal Proceedings                                          14

Item 4.  Other Information                                       14 - 15

Item 5.  Exhibits and Reports on Form 8-K                        15 - 16


<PAGE>


                            HIGH PLAINS CORPORATION
                                 Balance Sheets
                                  (Unaudited)
                       December 31, 2000 and June 30, 2000

<TABLE>
<CAPTION>

Assets                                 December 31, 2000      June 30, 2000
                                          (Unaudited)               **
<S>                                      <C>                   <C>
Current Assets:
  Cash and cash equivalents              $  5,560,607          $  4,886,011
  Accounts receivable
    Trade (less allowance of $75,000)      11,297,530            10,026,422
    Production credits and incentives
    (less allowance of $124,222)            2,027,420               329,829
Inventories                                 4,979,657             4,283,561
Notes receivable                               11,349                50,000
Prepaid expenses                              847,756               487,428
Refundable income tax                               0                30,000
    Total current assets                   24,724,319            20,093,251


Property, plant and equipment, at cost:
  Land and land improvements                  450,403               450,403
  Ethanol plants                           93,479,169            93,366,635
  Other equipment                             573,911               573,911
  Office equipment                            410,064               389,446
  Leasehold improvements                       48,002                48,002
  Construction in progress                  2,633,245               914,586
    Sub-total                              97,594,794            95,742,983
  Less accumulated depreciation           (33,106,712)          (31,295,936)
    Net property, plant and equipment      64,488,082            64,447,047

Other assets:
  Deferred loan costs (less accumulated       741,783               849,244
  amortization of $232,833 and $125,372,
  respectively)
  Other                                         2,904                13,054
    Total other assets                        744,687               862,298
                                         $ 89,957,088          $ 85,402,596

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

</TABLE>

<PAGE>


                               HIGH PLAINS CORPORATION
                                   Balance Sheets
                                     (Unaudited)
                          December 31, 2000 and June 30, 2000

<TABLE>
<CAPTION>


Liabilities and Stockholders Equity        December 31, 2000   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            584,703            561,518
  Accounts payable                              8,656,838          8,695,216
  Accrued interest                                295,094            295,772
  Accrued payroll and property taxes              796,696            779,199
    Total current liabilities                  12,583,331         12,838,843


Long-term debt                                 15,367,860         16,492,860
Capital lease obligations, less
  current maturities                              650,768            940,376
Deferred income tax payable                     3,757,647          1,389,000
Other                                             279,887            273,253
    Total non-current liabilities              20,056,162         19,095,489


Stockholders' Equity:
  Common stock, $.10 par value, authorized
    50,000,000 shares; issued 16,515,291 and
    16,453,798 shares at December 31, 2000 and
    June 30, 2000, respectively, of which 366,247
    and 276,847 were held as treasury stock at
    December 31, 2000 and June 30, 2000,
    respectively.                               1,651,529          1,645,380
  Additional paid-in capital                   37,830,614         37,695,277
  Retained earnings                            18,507,513         14,865,932
  Accumulated other comprehensive income:
    Grain derivatives                             306,165                  0
                                               58,295,821         54,206,589


Less:
  Treasury stock-at cost                         (957,962)          (710,849)
  Deferred compensation                           (20,264)           (27,476)
    Total stockholders' equity                 57,317,595         53,468,264
                                             $ 89,957,088       $ 85,402,596

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

</TABLE>

<PAGE>


                             HIGH PLAINS CORPORATION
                             Statement of Operations
                                   (Unaudited)
                  Three Months Ended December 31, 2000 and 1999
                 and Six  Months Ended December 31, 2000 and 1999

<TABLE>
<CAPTION>
                                Three Months Ended        Six Months Ended
                                    December 31,             December 31,
                                2000         1999         2000         1999

<S>                         <C>          <C>          <C>          <C>
Net sales and revenues      $36,078,563  $25,314,167  $65,260,359  $48,017,818
Cost of goods sold           31,013,216   23,280,182   56,922,558   45,331,650
  Gross profit                5,065,347    2,033,985    8,337,801    2,686,168

Selling, general and
administrative expenses         950,359      750,750    1,755,172    1,653,538
  Operating income            4,114,988    1,283,235    6,582,629    1,032,630
Other income/(expense):
  Interest expense             (476,897)    (410,453)    (966,199)    (800,098)
  Interest and other income     112,284       19,034      210,100       33,664
  Gain on sale of assets              0       (1,612)           0       20,388
                               (364,613)    (393,031)    (756,099)    (746,046)
Net income before
  income taxes                3,750,375      890,204    5,826,530      286,584

Income tax expense           (1,406,391)     (97,469)  (2,184,949)    (107,469)

Net earnings                $ 2,343,984  $   792,735  $ 3,641,581  $   179,115

Diluted earnings per
  share                     $       .14  $       .05  $       .22  $       .01

</TABLE>

                    Statements of Comprehensive Income/(Loss)
                                   (Unaudited)
                  Three Months Ended December 31, 2000 and 1999
                 and Six  Months Ended December 31, 2000 and 1999

<TABLE>
<CAPTION>
                                Three Months Ended        Six Months Ended
                                    December 31,             December 31,
                                2000         1999         2000         1999

<S>                         <C>          <C>          <C>          <C>
Net earnings                $ 2,343,984  $  792,735   $ 3,641,581  $  179,115

Other comprehensive income:
Grain derivatives               169,300           0       306,165           0
Comprehensive income        $ 2,513,284  $  792,735   $ 3,947,746  $  179,115

<FN>
                  See accompanying notes to financial statements.

</TABLE>

<PAGE>



                             HIGH PLAINS CORPORATION
                        Statement of Stockholders' Equity
                                   (Unaudited)
                        Six Months Ended December 31, 2000

<TABLE>
<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

Grain 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

Grain 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>


                            HIGH PLAINS CORPORATION
                            Statement of Cash Flows
                                 (Unaudited)
                  Six Months Ended December 31, 2000 and 1999

<TABLE>
<CAPTION>

                                                        2000            1999

<S>                                                <C>              <C>
Cash flows from operating activities:
  Net earnings                                     $  3,641,581     $  179,115
  Adjustments to reconcile net earnings to
    net cash provided by operating activities:
    Depreciation and amortization                     1,953,351      2,009,511
    Amortization of deferred compensation                 7,212         26,735
    Compensation expense on treasury stock grants             0        225,029
    Unrealized grain futures market value changes       (38,750)             0
    Gain on sale of equipment                                 0        (20,388)
    Deferred income taxes                             2,184,949        107,469
Change in operating assets and liabilities:
  Accounts receivable                                (2,429,938)    (2,641,588)
  Notes receivable                                       46,940      1,000,000
  Inventories                                          (696,096)       307,911
  Income tax payable/receivable                          30,000        (10,000)
  Prepaid expenses                                     (360,328)      (280,861)
  Accounts payable                                      136,141        953,288
  Accrued liabilities                                  (157,861)        57,611

    Net cash provided by operating activities         4,317,201      1,913,832

Cash flows from investing activities:
  Proceeds from sale of equipment                             0         22,000
  Acquisition of property, plant and equipment       (1,877,081)      (716,037)
  Decrease (increase) in other non-current assets             0       (900,430)

    Net cash used in investing activities            (1,877,081)    (1,594,467)

Cash flows from financing activities:
  Proceeds from long-term debt                                0     20,000,000
  Payments on long-term debt                         (1,382,138)             0
  Payments on revolving lines-of-credit                       0    (16,900,000)
  Payments on capital lease obligations                (276,265)      (256,119)
  Acquisition of Treasury Stock                        (247,114)             0
  Proceeds from exercise of stock options               132,599              0
  Increase (decrease) in other non-current
    liabilities                                           7,394         14,251

    Net cash (used) provided by financing
    activities                                       (1,765,524)     2,858,132

    Increase in cash and cash equivalents               674,596      3,177,497

Cash and cash equivalents:
    Beginning of period                               4,886,011        330,672
    End of period                                  $  5,560,607     $3,508,169


<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 December 31, 2000 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.  As of December 31, 2000, the revolving line-of-credit
had $8 million of credit available and undrawn.

3) Stock Options

On November 28, 2000, shareholders approved the granting of 1,200,000
options to the Directors and president.  The options were priced at the
September 7, 2000 closing price of $2.75 per share, per the approved
amendment.  On November 28, 2000, 150,000 options were granted at $2.75
per share to the newly elected director and priced at the closing market
price on such date. On October 18, 2000, 5,000 options were granted at
$2.84 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, with the
exception on the 1,200,000 options that were priced per the approved
amendment. During the quarter ended December 31, 2000, 31,100 options were
exercised by 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.

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
  December 31,                                2000              1999
    <S>                                  <C>                <C>
    Net earnings
      As reported                        $  2,343,984       $  792,735
      Pro forma                             2,331,425          738,598

    Diluted earnings per share
      As reported                        $        .14       $      .05
      Pro forma                                   .14              .05

For the six months ending
  December 31,

    Net earnings
      As reported                        $  3,641,581       $  179,115
      Pro forma                             3,589,333           (3,641)

    Diluted earnings per share
      As reported                        $        .22       $      .01
      Pro forma                                   .22             (.00)

</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.


<PAGE>


5) Earnings Per Share

The diluted earnings per share for the three months ended December 31,
2000 and 1999 have been calculated based on 16,423,821 and 16,149,681
diluted shares outstanding, respectively.  The diluted earnings per share
for the six months ended December 31, 2000 and 1999 have been calculated
based on 16,375,484 and 16,125,326,  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>
                                       December 31, 2000    June 30, 2000
<S>                                       <C>                <C>
Inventories consisted of the
  following components:
    Raw Materials                         $  675,672         $ 1,276,938
    Work in progress                         488,746             493,064
    Finished goods                         2,622,300           1,469,053
    Spare parts                            1,192,939           1,044,506

Total                                     $4,979,657         $ 4,283,561

</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                $  489,863   $  183,698    $  306,165

    Grain derivatives

Balance, beginning                   $  136,865

    Current period change               169,300

Balance, ending                      $  306,165

</TABLE>

<PAGE>


8) 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 December 31, 2000.  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.

The Company also 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.

As of and during the quarter ended December 31, 2000, the Company held
derivative positions accounted for as cash flow hedges of its forecasted
grain purchase requirements, under SFAS 133.  The resulting net gain or
loss from such derivatives is reported in cost of goods sold when the
related grain purchase transaction occurs.  The grain derivative gains or
losses reflected in other comprehensive income at December 31, 2000, will
be recognized in earnings during the subsequent time period when the
related forecasted grain transaction occurs, generally during the
subsequent quarter.  The Company does not hedge all of its forecasted
grain 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 quarter ended December 31, 2000,
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.


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>


Six Months Ended December 31, 2000 and 1999

Net Sales and Operating Expenses.

Net sales and revenues for the six months ended December 31, 2000, were
35.9% higher than net sales for the same period ended December 31, 1999.
During the six months ended December 31, 2000, approximately 36.6 million
gallons of fuel grade ethanol were sold at an average price of $1.29 per
gallon compared to 34.1 million gallons sold at an average price of $0.99
per gallon, for the same period ending December 31, 1999.  Fuel grade
ethanol sales included 6.5 million gallons of brokered fuel grade ethanol
(marketed on behalf of other producers) for the six months ended December
31, 2000 compared to 1.6 million gallons of brokered fuel grade ethanol
for the same period ended December 31, 1999.  In addition, approximately
4.6 million gallons of industrial/beverage grade ethanol were sold at an
average price of $1.48 per gallon during the six months ended December 31,
2000 compared to approximately 2.7 million gallons sold at $1.40 per
gallon for the same period ended December 31, 1999. Industrial/beverage
grade ethanol sales included .8 million gallons of brokered
industrial/beverage grade ethanol (marketed on behalf of other producers)
for the six months ended December 31, 2000 compared to .8 million gallons
of brokered industrial/beverage grade ethanol for the same period ended
December 31, 1999.  Fuel grade gallons sold during the six months ended
December 31, 2000 increased by approximately 7% compared to the same
period ended December 31, 1999, while industrial/beverage grade gallons
sold during the similar period increased 70% compared to the same period
ended December 31, 1999.  The increase in industrial/beverage grade
gallons was primarily due to increased marketing efforts in that segment
of the Company's business.  Whereas, the increase in fuel grade ethanol
volume was the direct result of the 306% increase in brokered fuel grade
ethanol.  The increase in net sales revenue primarily resulted from a 30%
increase in the sales price of fuel grade ethanol, which stemmed from
favorable blending economics and mandated oxygenate market demand in the
second half of the period. Included in the Company's net sales and
revenues were $2,244,441 and $2,134,116 of state producer incentive
payments from Kansas and Nebraska for the six-month period ended December
31, 2000 and 1999, 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 $10,906,586 and $8,372,598 of
net sales and revenues for the six-month period ended December 31, 2000
and 1999, respectively.

Cost of products sold as a percentage of net sales and revenues was 87.2%
and 94.4% for the six months ended December 31, 2000 and 1999,
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 $0.27 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 $1.84 for the six months ended December 31,
2000, down from $1.94 for the same period ended December 31, 1999.  These
gains were offset by significantly higher natural gas costs compared to
the same period a year ago.  Natural gas prices averaged $4.65 per MMBTU
(million British Thermal Units) during the six months ended December 31,
2000, up from $2.41 per MMBTU for the same period ended December 31, 1999.
The Company's Portales, New Mexico facility contributed $9,595,558 and
$8,949,369 of cost of products sold for the six-month period ended
December 31, 2000 and 1999, respectively.

Selling, general and administrative (SG&A) expenses increased 6.1% for the
six months ended December 31, 2000, compared to the same period ended
December 31, 1999.   This increase is the result of an increase in
administrative salary and benefit expenses resulting from an increase in
staff and increased professional fees resulting from glycerol side-stream
research.

Net Earnings.

Net earnings increased $3.5 million for the six months ended December 31,
2000, compared to net earnings for the same period in 1999.  Net earnings
as a percentage of net sales and revenues increased from .4% to 5.6%.  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 December 31, 2000 compared to the same period ended
December 31, 1999.  Diluted earnings per share at December 31, 2000, were
$0.21 per share higher than diluted earnings per share for the same period
in 1999 due to the increased earnings. The Company's Portales, New Mexico
facility contributed $1,311,028 and ($576,771) of plant operating margin
before taxes, allocated overhead and interest expense for the six-month
period ended December 31, 2000 and 1999, respectively.


<PAGE>


Three Months Ended December 31, 2000 and 1999

Net Sales and Operating Expenses.

Net sales and revenues for the three months ended December 31, 2000,
increased 42.5% compared to the same period ended December 31, 1999.
During the quarter ended December 31, 2000, approximately 18.5 million
gallons of fuel grade ethanol were sold at an average price of $1.32 per
gallon compared to approximately 17.8 million gallons sold at an average
price of $1.00 per gallon, for the same period ending December 31, 1999.
Fuel grade ethanol sales included 3.8 million gallons of brokered fuel
grade ethanol (marketed on behalf of other producers) for the quarter
ended December 31, 2000 compared to 1.0 million gallons of brokered fuel
grade ethanol for the same period ending December 31, 1999.  In addition,
approximately 3.2 million gallons of industrial/beverage grade ethanol
were sold at an average price of $1.48 per gallon during the quarter ended
December 31, 2000 compared to approximately 2.1 million gallons sold at
$1.38 per gallon for the same period ending December 31, 1999.
Industrial/beverage grade ethanol sales included .4 million gallons of
brokered industrial/beverage grade ethanol for the quarter ended December
31, 2000 compared to .5 million gallons of brokered fuel grade ethanol for
the same period ending December 31, 1999.  Fuel grade gallons sold during
the quarter ended December 31, 2000 increased approximately 3% compared to
the same period in 1999.  Industrial/beverage grade gallons sold during
the quarter ended December 31, 2000 increased approximately 52% compared
to the same period in 1999. The fuel grade ethanol market demand was very
strong for the quarter ended December 31, 2000, 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 32% increased
in the average delivered price of fuel grade ethanol. Included in the
Company's net sales and revenues were $2,082,787 and $378,097 of state
producer incentive payments from Kansas and Nebraska for the quarter ended
December 31, 2000 and 1999, respectively.  Current quarter 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 $5,680,391 and
$4,639,139 of net sales and revenues for the periods ended December 31,
2000 and 1999, respectively.

Cost of products sold as a percentage of net sales and revenues was 86%
and 92% for the three months ended December 31, 2000 and 1999,
respectively.  The cost of products sold as a percentage of net sales and
revenues for the quarter ended December 31, 2000 decreased dramatically
compared to the same period in 1999.  The decrease was due to higher fuel
grade and industrial beverage grade ethanol net-backs (sales price less
freight) together with the one-time $1,814,668 Nebraska state producer
incentive payment. Current quarter average net-backs increased $0.31 and
$0.12 per gallon on fuel grade and industrial/beverage grade ethanol,
respectively, compared to prior fiscal year. The favorable net-backs were
offset by much higher natural gas costs for the comparable periods.
Natural gas prices averaged $5.17 per MMBTU (million British Thermal
Units) during the three months ended December 31, 2000, up from $2.42 per
MMBTU for the same period ended December 31, 1999.  The average cost of
grain remained flat at $1.85 per bushel for the quarter ended December 31,
2000, compared to $1.86 per bushel for the same quarter in 1999. The
Company's Portales, New Mexico facility contributed $5,014,065 and
$4,530,817of cost of goods sold for the periods ended December 31, 2000
and 1999, respectively.

Selling, general and administrative (SG&A) expenses increased 26.6% for
the quarter ended December 31, 2000, compared to the same period ended
December 31, 1999.  This increase is the result of an increase in
administrative salary and benefit expenses resulting from an increase in
staff, increased travel expenses, and increased research and development
expenses resulting from the glycerol side-stream research.

Net Earnings.

Net earnings increased $1.6 million for the three months ended December
31, 2000, compared to net earnings for the same period ended December 31,
1999.  Net earnings as a percentage of net sales and revenues increased
from 3.1% to 6.5% for the comparable periods. The increase is due to an
increase in the Company's gross profit, from higher net-backs and a one-
time $1,814,668 producer incentive from the state of Nebraska, net of
higher deferred tax expenses for the period ended December 31, 2000
compared to the same period ended December 31, 1999.  Diluted earnings per
share at December 31, 2000, were $0.09 per share higher than diluted
earnings per share for the same period in 1999 due to the increased
earnings.  The Company's Portales, New Mexico facility contributed
$666,326 and $108,322 of operating margin before taxes, allocated overhead
and interest for the periods ended December 31, 2000 and 1999,
respectively.


<PAGE>


Liquidity and Capital Resources

The Company's primary source of funds during the quarter ended December
31, 2000 was cash flow from operating activities.  At December 31, 2000,
the Company had working capital of approximately $12.1 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 cash and cash equivalents, trade and production credit receivables and
inventories.  The Company's inventory increase is due to reduced shipments
caused by severe winter storm conditions at its York, Nebraska and
Portales, New Mexico facilities.

Capital expenditures through December 31, 2001 amounted to approximately
$1.9 million for modifications to the Company's three plants compared to
approximately $.7 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 is in the process of
receiving modification to its dryers for increased output and more
reliable operations.

The Company was able to refinance its revolving-lines-of credit into term
debt December 3, 1999.  The Company obtained a $28 million credit
facility, which consisted of $20 million term loan and $ 8 million
revolving line-of-credit.  The $8 million revolving line-of-credit was
available and undrawn, as of December 31, 2000. The Company believes it
has adequate short-term working capital and borrowing availability under
its new 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 half of fiscal 2001.  Due to the
continued strength of the unleaded gasoline market, fuel grade ethanol
pricing remained strong throughout the first half of fiscal 2001.  Now
with the Company in the oxygenate season and with many analysts projecting
continued strength in the oil markets, management believes fuel ethanol
pricing will remain at the current levels throughout the Company's third
fiscal quarter.  Furthermore, the Company has contracted approximately
three quarters 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 December 31, 2000, no such legislation had been enacted.

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 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.  Current market conditions and carry from
previously contracted grain indicates the Company may have slightly higher
grain cost during the third quarter of fiscal 2001 compared to the same
period in fiscal 2000.


<PAGE>


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.  Some analyst believe these current
conditions could persist for the next several years until new production
comes on-line.  It is the Company's belief that natural gas will trade in
the $4.50 per MMBTU to $5.50 per MMBTU range for the next several years.
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 or
supply disruptions that have affected the spot market prices so
dramatically in the first half of fiscal 2001.

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.  With grain prices remaining low, DGS prices (also at
historically low levels overall) softened in the second quarter of fiscal
2001.  The Company has emphasized production of a wet distillers grain
product at its Nebraska and New Mexico facilities in an effort to
strengthen and stabilize its feed markets.  However, anticipated softness
in grain prices should also result in some 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 December
31, 2000 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

The Company held its Annual Meeting of Stockholders on November 28, 2000.
The meeting involved the election of two directors, H.T. Ritchie and
Gilbert B. Eckhoff.

<TABLE>
<CAPTION>

Voting results:
                                                                  BROKER
                        FOR        AGAINST      ABSTENTIONS      NONVOTERS
<S>                 <C>           <C>               <C>             <C>
H.T. Ritchie        13,646,132    1,504,453         -0-             -0-

Gilbert B. Eckhoff  13,646,508    1,504,077         -0-             -0-

</TABLE>

The following details the issues which were presented to stockholders for
vote and the results of that vote:

(1) Ratify the appointment of Allen, Gibbs, & Houlik, LC as the Company's
    independent public accountants.
(2) Ratify modification of the Company's 1992 stock option plan and grant
    options to the Company's directors and non-executive director group, as
    outlined in the Company's Proxy Statement for the November 28, 2000
    annual meeting of shareholders.


<PAGE>

<TABLE>
<CAPTION>

                                                                  BROKER
   RESULTS         FOR        AGAINST       ABSTENTIONS          NONVOTERS
     <S>       <C>           <C>              <C>                   <C>
     (1)       14,966,212       75,885        108,488               -0-

     (2)        5,831,971    3,133,547        181,402               -0-

</TABLE>

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:

       October 17, 2000   Company announced first quarter earnings and
                          earnings per share for the period ending
                          September 30, 2000.

       November 14, 2000  Company announced it had been named one of the
                          fifty fastest growing technology companies
                          by Deloitte and Touche.

       November 28, 2000  Company announced continued operation of the
                          Portales facility through March 2001 and
                          glycerol project update.

       December 8, 2000   Company announced board approval of $1 million
                          stock repurchase program.

       December 29, 2000  Company announced proposed expansion of its York,
                          Nebraska facility.

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