FORM 10-Q

                     SECURITIES AND EXCHANGE COMMISSION
                          Washington, D.C.  20549

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

For the quarterly period ended March 31, 1999 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                                (IRS Employer
incorporation or 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 PROCEEDINGS 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 a 
plan confirmed by a court.

                        YES_____              NO_____

                   Common Stock, Par Value $.10 per share,
                                Outstanding at
                        March 31, 1999 - 15,999,444


<PAGE>
<TABLE>

<S>                                                                <C>
PART I             FINANCIAL INFORMATION


Item 1.            FINANCIAL STATEMENTS

Balance Sheets                                                      3  -  4

Statements of Income                                                   5

Statements of Stockholders' Equity                                     6

Statements of Cash Flows                                               7

Selected Notes to Financial Statements                              8  -  9


Item 2.            MANAGEMENT'S DISCUSSIONS AND ANALYSIS
                   OF FINANCIAL CONDITION AND RESULTS
                   OF OPERATIONS                                   10  -  14


PART II            OTHER INFORMATION

Item 1.  Legal Proceedings                                             15

Item 4.  Submission of Matters to a Vote of Security Holders           15

Item 6.  Exhibits and Reports on Form 8-K                              16



</TABLE>

<PAGE>



                            HIGH PLAINS CORPORATION
                                Balance Sheets
                                 (Unaudited)
                       March 31, 1999 and June 30, 1998

<TABLE>
<CAPTION>

                                            March 31,           June 30,
                                              1999                1998
Assets                                     (Unaudited)             **
<S>                                     <C>                 <C>
Current Assets:
  Cash and cash equivalents             $   1,114,398       $     674,894
  Accounts receivable
    Trade (less allowance of $75,000
     in 1999 and 1998)                      5,612,555           4,500,579
    Production credits and incentives
     (less allowance of $124,222
     and $0 in 1999 and
     1998 respectively)                       945,220             829,849
  Inventories                               4,753,607           6,328,232
  Notes receivable                          1,000,000              31,307
  Prepaid expenses                            519,316              85,168
  Refundable income tax                           -0-              30,000  
       Total current assets                13,945,096          12,480,029

Property, plant and equipment, at cost:
  Land and land improvements                  450,403             433,496
  Ethanol plants                           94,625,920          92,906,633
  Other equipment                             565,552             473,345
  Office equipment                            304,913             279,278
  Leasehold improvements                       48,002              48,002
                                           95,994,790          94,140,754
  Less accumulated depreciation          ( 26,658,234)       ( 23,819,484)
       Net property, plant and equipment   69,336,556          70,321,270

Other assets:
  Equipment held for resale                   123,504             264,554
  Deferred loan costs (less accumulated
   amortization of $64,172 and $38,095,
   respectively)                              131,879             117,890
  Other                                        30,177              65,886
       Total other assets                     285,560             448,330

                                        $  83,567,212       $  83,249,629


<FN>
                See accompanying notes to financial statements.

                   **  From audited financial statements.

</TABLE>

<PAGE>



                           HIGH PLAINS CORPORATION
                          Balance Sheets Continued
                                 (Unaudited)
                       March 31, 1999 and June 30, 1998


<TABLE>
<CAPTION>
                                            March 31,           June 30,
                                              1999                1998
                                           (Unaudited)             **
Liabilities and Stockholders' Equity
<S>                                     <C>                 <C>
Current liabilities:
  Revolving lines-of-credit             $   8,850,000       $   9,000,000
  Current maturities of capital
   lease obligations                          520,280             500,852
  Accounts payable                          7,088,114           8,364,074
  Accrued interest                            168,899             223,722
  Accrued payroll and property taxes          977,164             822,971
  Deferred income taxes payable               161,000                 -0-
      Total current liabilities            17,765,457          18,911,619

Revolving line-of-credit                    8,550,000           9,700,000
Capital lease obligations, less
 current maturities                         1,611,026           2,002,623
Deferred income taxes payable                 982,041                 -0-
Other                                         431,506             364,240
                                           11,574,573          12,066,863


Stockholders' equity:
  Common stock, $.10 par value,
   authorized 50,000,000 shares; issued
   16,410,622 shares at March 31, 1999
   and June 30, 1998, of which 411,178
   shares were held as treasury stock
   at March 31, 1999 and June 30, 1998      1,641,062           1,641,062
  Additional paid-in capital               37,457,167          37,457,167
  Retained earnings                        16,118,868          14,170,697
                                           55,217,097          53,268,926


Less:
  Treasury stock - at cost                   (863,911)           (863,911)
  Deferred compensation                      (126,004)           (133,868)
      Total stockholders' equity           54,227,182          52,271,147

                                        $  83,567,212       $  83,249,629


<FN>
                 See accompanying notes to financial statements.

                      **  From audited financial statements.


</TABLE>

<PAGE>



                             HIGH PLAINS CORPORATION
                              Statements of Income
                                  (Unaudited)
                  Three Months Ended March 31, 1999 and 1998
                 and Nine Months Ended March 31, 1999 and 1998

<TABLE>
<CAPTION>

                              Three Months Ended          Nine Months Ended
                                   March 31,                   March 31,
                              1999          1998          1999         1998
<S>                       <C>           <C>           <C>          <C>
Net sales and revenues    $23,920,820   $19,123,056   $73,086,754  $63,354,876
Cost of products sold      21,869,382    18,685,219    68,629,971   59,681,110
  Gross profit              2,051,438       437,837     4,456,783    3,673,766

Selling, general and
 administrative expenses      541,818       366,580     1,514,785    1,281,920
  Operating income          1,509,620        71,257     2,941,998    2,391,846

Other income (expense):

Interest expense             (402,180)     (394,878)   (1,300,587)  (1,062,001)
Interest and other
 income                        15,541        31,348       283,658       93,168
Gain on sale of
 equipment                    933,000           -0-     1,166,143        1,050

                              546,361      (363,530)      149,214     (967,783)

Net earnings (loss) 
 before income taxes        2,055,981      (292,273)    3,091,212    1,424,063

Income tax (expense)
 benefit                     (760,713)      ( 7,152)   (1,143,041)      52,801

Net earnings (loss)       $ 1,295,268   $  (299,425)  $ 1,948,171  $ 1,476,864

Diluted earnings (loss) 
 per share                $       .08   $      (.02)  $       .12  $       .09



<FN>
                See accompanying notes to financial statements.
    

</TABLE>

<PAGE>



                           HIGH PLAINS CORPORATION
                     Statements of Stockholders' Equity
                                 (Unaudited)
                      Nine Months Ended March 31, 1999

<TABLE>
<CAPTION>

                                        
               Common
               Stock                                
                                      Additional
               Number      Amount      Paid-in      Retained    Treasury    Deferred   
             of  Shares                Capital      Earnings     Stock    Compensation     Total
                                        
<S>          <C>         <C>         <C>          <C>          <C>         <C>         <C>
Balance,
 June 30,
 1998        16,410,622  $1,641,062  $37,457,167  $14,170,697  $(863,911)  $(133,868)  $52,271,147

Employee
 Stock
 Purchase                                                                    (23,351)      (23,351)

Amortization
 of deferred
 compensation                                                                 11,166        11,166

Net earnings
 for the
 quarter                                              129,613                              129,613
                                        
Balance,
 September 30,
 1998        16,410,622  $1,641,062  $37,457,167  $14,300,310  $(863,911)  $(146,053)  $52,388,575
                                        
Amortization
 of deferred
 compensation                                                                  9,743         9,743

Net earnings
 for the
 quarter                                              523,290                              523,290
                                        
Balance,
 December 31,
 1998        16,410,622  $1,641,062  $37,457,167  $14,823,600  $(863,911)  $(136,310)  $52,921,608
                                        
Amortization
 of deferred
 compensation                                                                 10,306        10,306

Net earnings
 for the
 quarter                                            1,295,268                            1,295,268
                                        
Balance,
 March 31,
 1999        16,410,622  $1,641,062  $37,457,167  $16,118,868  $(863,911)  $(126,004)  $54,227,182
                                        


<FN>
                See accompanying notes to financial statements.


</TABLE>

<PAGE>



                           HIGH PLAINS CORPORATION
                           Statements of Cash Flows
                                 (Unaudited)
                 Nine Months Ended March 31, 1999 and 1998


<TABLE>
<CAPTION>

                                                  1999               1998
                              
<S>                                           <C>                <C>
Cash Flows from operating activities:
  Net earnings                                $ 1,948,171        $ 1,476,864
  Adjustments to reconcile net earnings to
   net cash provided by operating activities:
    Depreciation and amortization               2,866,127          2,593,785
    Amortization of deferred compensation          31,215             47,856
    Provision for bad debt                        124,222                -0-
    Gain on sale of equipment                  (1,166,143)            (1,050)
    Debt forgiveness                             (231,359)               -0-
    Deferred income taxes                       1,143,040                -0-
    Payments on notes receivable                   31,307             86,985
Changes in operating assets and liabilities:
  Accounts receivable                          (1,351,569)          (248,923)
  Inventories                                   1,574,625         (1,961,778)
  Refundable income tax                            30,000            145,328
  Prepaid expenses                               (434,148)          (280,886)
  Accounts payable                             (1,044,601)         1,598,559
  Accrued liabilities                              99,370            276,027
                              
      Net cash provided by operating
       activities                               3,620,257          3,732,767
                              
Cash flows from investing activities:
  Proceeds from sale of equipment                 436,545              8,590
  Acquisition of property, plant
   and equipment                               (1,984,688)        (7,372,287)
  Increase in other non-current assets             (4,357)           (25,582)
                              
      Net cash used in investing
       activities                              (1,552,500)        (7,389,279)
                              
Cash flows from financing activities:
  Proceeds from revolving lines-of-credit         900,000          7,700,000
  Payment on revolving lines-of-credit         (2,200,000)        (4,050,000)
  Payment on capital lease obligations           (372,169)          (393,647)
  Proceeds from exercise of options                   -0-             60,131
  Increase (decrease) in other non-current
   liabilities                                     43,916            (32,909)
                              
      Net cash provided by financing
       activities                              (1,628,253)         3,283,575
                              
        Increase (decrease) in cash and
         cash equivalents                         439,504           (372,937)

        Cash and cash equivalents
          Beginning of period                     674,894          2,389,758
          End of period                       $ 1,114,398        $ 2,016,821
                              

<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 recurring 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, 1999 are not necessarily indicative of the operating 
results for the entire year.


(2) Financial Arrangements

On March 31, 1999 the Company amended its existing loan agreement with its 
primary lender.  The amendment provides for the extension of the $6.5 million
revolving line-of-credit to September 30, 1999.  This line-of-credit has an 
outstanding balance of $6.5 million at March 31, 1999.  In addition, the 
amendment provides for the required decreases to the reducing revolving line-
of-credit of $3.4 million per fiscal year, be lowered to $2.7 million for 
fiscal year 1999 and 2000.

The existing financial agreement also contains various restrictions including
the maintenance of certain financial ratios and fulfilling certain financial 
tests.  At March 31, 1999 the amendment adjusted some of these covenant 
calculations and the lender waived the Company's compliance with certain 
other covenants for March 31, 1999.  In addition, the Company was in 
compliance with the covenants not waived at March 31, 1999.


(3) Notes Receivable

On March 30, 1999, the Company entered into several agreements with a carbon 
dioxide (CO2) processing company to (1) effect the sale of the Company's CO2 
equipment located at its Portales, New Mexico facility for $1 million; and 
(2) sell CO2 from the Colwich, Kansas plant to the processing company, who 
will relocate the CO2 equipment to the Colwich facility.  Production and sale
of CO2 by the Company is anticipated to begin in August 1, 1999.


(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 the pro forma amounts below:

<TABLE>
<CAPTION>

For the three months ending
  March 31,                                 1999                 1998 
  <S>                                    <C>                  <C>
  Net earnings
     As reported                         $1,295,268           $(299,425)
     Pro forma                            1,278,877            (299,425)

  Diluted earnings per share:
     As reported                                .08                 .12
     Pro forma                                  .08                 .12


For the nine months ending
  March 31, 

  Net earnings
     As reported                         $1,948,171           $1,476,864
     Pro forma                            1,801,473            1,199,646

  Diluted earnings per share:
     As reported                                .12                  .09
     Pro forma                                  .11                  .08

</TABLE>


<PAGE>


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 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. 

The diluted earnings per share for the three months ended March 31, 1999 and 
1998 have been calculated based on 16,014,717 and 16,009,802 diluted shares 
outstanding respectively.  The diluted earnings per share for the nine months 
ended March 31, 1999 and 1998 have been calculated based on 16,012,508 and 
16,018,715 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. 



<PAGE>




Part I        MANAGEMENTS 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, 1999 and 1998

Net Sales and Operating Expenses.

Net sales and revenues for the nine months ended March 31, 1999, were higher 
than net sales for the same period ended March 31, 1998.  During the nine 
months ended March 31, 1999, approximately 50.2 million gallons of fuel grade 
ethanol were sold at an average price of $1.07 per gallon compared to 35.7 
million gallons sold at an average price of $1.15 per gallon, for the same 
period ending March 31, 1998.  In addition, approximately 1.3 million gallons
of industrial grade ethanol were sold at an average price of $1.30 per gallon
during the nine months ended March 31, 1999 compared to approximately 2.2 
million gallons sold at an average price of $1.48 per gallon for the same 
period ending March 31, 1998.  Fuel grade gallons sold during the nine months 
ended March 31, 1999 increased approximately 40.6% compared to the same 
period in 1998 primarily as a result of increased production available for 
sale due to approximately 9.5 million gallons of production from the 
Portales, New Mexico facility compared to .3 million gallons for the same 
period last year.  This facility began producing in March 1998.

Cost of products sold as a percentage of net sales and revenues was 93.9% and 
94.2% for the nine month periods ended March 31, 1999 and 1998, respectively.  
The decrease in the cost of products sold as a percentage of net sales and 
revenues was primarily due to a decrease in average grain prices offset by 
the decrease in the average sale price for fuel grade ethanol.  The average 
cost of grain declined to $2.14 per bushel for the nine months ended March 
31, 1999, down from $2.44 per bushel for the same period in 1998.

Selling, general and administrative expenses increased 18.1% for the nine 
months ended March 31, 1999, compared to the same period ended March 31, 
1998.  This increase is the result of an increase in administrative salary 
and benefit expenses resulting from an increase in staff and changes in 
management and an increase in investor relations expenditures.


Net Earnings.

Net earnings increased 31.9% for the nine months ended March 31, 1999, 
compared to net earnings for the same period in 1998.  Net earnings as a 
percentage of net sales and revenues increased from 2.3% to 2.7%.  The 
increase is due to an increase in gain on sale of equipment offset by an 
increase in income tax expense primarily composed of deferred income taxes of 
approximately $1.1 million for the nine months ended March 31, 1999 compared 
to an income tax benefit of $52,801 for the comparable period in 1998.  
Diluted earnings per share at March 31, 1999, were 33% higher than the 
diluted earnings per share for the same period in 1998 due to the increase in 
net earnings.


<PAGE>



MATERIAL CHANGES IN RESULTS AND OPERATIONS

Three Months Ended March 31, 1999 and 1998

Net Sales and Operating Expenses and Results of Operations.

Net sales and revenues for the three months ended March 31, 1999 increased 
25% compared to the same period in 1998.  During the quarter ended March 31, 
1999, approximately 16.4 million gallons of fuel grade ethanol were sold at 
an average price of $1.07 per gallon compared to approximately 10.3 million 
gallons sold during the same period in 1998 at an average price of $1.10 per 
gallon.  Fuel grade gallons sold during the three months ended March 31, 1999 
increased approximately 59% compared to the same period in 1998 due to 
approximately 3.4 million gallons of product sold from the Portales, New 
Mexico facility compared to approximately .3 million gallons during the same 
period ending March 1998.  Additionally, as a result of then low ethanol 
prices, the Company experienced unusually high inventory levels at March 31, 
1998.  During the period ended March 31, 1998 approximately 1.0 million 
gallons of industrial grade ethanol were sold at an average price of $1.39 
per gallon in the same period.  Sales of industrial grade ethanol during the 
quarter ended March 31, 1999 were insignificant.

Cost of products sold as a percentage of net sales and revenues was 91.4% and
97.7% for the three month periods ended March 31, 1999 and 1998, 
respectively.  The decrease in cost of products sold as a percentage of net 
sales and revenues is primarily due to a decrease in the cost of grain offset 
by a decrease in the average sale price for fuel grade ethanol.  The average 
cost of grain decreased 13.7% to $2.14 per bushel for the three months ended 
March 31, 1999, down from $2.48 per bushel for the same period ended March 
31, 1998.

Selling, general and administrative expenses increased 47.8% for the three 
months ended March 31, 1999, compared to the period ended March 31, 1998.  
The increase was primarily due to an increase in expenditures for investor 
relations and an increase in administrative salary expenses and benefits 
resulting from an increase in staff and changes in management.


Net Earnings.

Net earnings increased from a loss of ($299,425) for the three months ended 
March 31, 1998 to net earnings of $1,295,268 for the three months ended
March 31, 1999.  The increase in net earnings was due to the increase in gross
margin in the 1999 period compared to 1998 offset by approximately $761,000 
in income tax expense, which primarily consists of deferred income taxes, for 
the three months ended March 31, 1999 compared to approximately $7,200 of 
income tax expense for the three months ended March 31, 1998.  Diluted 
earnings per share for the three months ended March 31, 1999 were higher 
compared to diluted earnings per share for the three months ending March 31, 
1998 due to an increase in net earnings.


Liquidity and Capital Resources

The Company's primary source of funds during the third quarter of fiscal 1999 
was cash flow from operations.  At March 31, 1999, the Company has negative 
working capital of ($3.8) million compared to a negative working capital of 
approximately ($6.4) million at June 30, 1998.  The decrease in negative 
working capital was primarily the net effect of an increase in notes 
receivable and cash, and a decrease in inventories offset by an increase in 
trade accounts receivable.

Capital expenditures in the first nine months of fiscal 1999 amounted to 
approximately $2.0 million for modifications at the Company's three plants 
compared with approximately $7.4 million for the same period in fiscal 1998.  
The fiscal 1998 expenditures included the $4 million acquisition of the 
Portales, New Mexico facility.

In the opinion of management, the current liquidity position of the Company 
is dependent upon its ability to negotiate alternative financing arrangements
through financial institutions including its primary lender.  Should the 
Company be unable to obtain new financial arrangements, the Company may seek 
additional funds through the sale of stock, or issue of debt and/or equity 
securities.



<PAGE>



Funds expected to be generated from future operations will be negatively 
affected after December 1999 due to the scheduled expiration of the Nebraska 
production tax credit.  The Company anticipates full utilization of this 
credit by the end of the third quarter of calendar 1999.  While there is 
currently a bill pending before the Nebraska legislature to extend the 
production tax credit for expansion of production capacity, the extension,
even if passed, would require a significant capital expenditure, and would
be in effect for a short period of time, and only at a substantially
reduced per gallon rate.

With the expiration of the incentive, the Company's future operations in 
Nebraska and its liquidity position could be substantially and negatively 
affected.  However, the Company continues to improve efficiencies, to 
implement cost reduction plans, and is working to expand into more profitable
industrial grade markets to assist in improving the Company's liquidity and 
earnings.


Seasonality

Fuel ethanol prices are historically stronger during the winter months due to 
the mandated markets of the Federal Oxygen Program.  Prices typically 
increase in the weeks before September, and decrease by March due to shipping 
schedules.  These seasonal price increases again occurred in the fall and 
winter of fiscal 1999, although climbing to a lower peak than in fiscal 1998.  
The seasonal summer decline also started earlier than usual and continued 
into March with price levels below those seen in the summer of 1998.  The 
Company believes this decline is mostly due to low prices for gasoline.  
Until a recent rebound, gasoline prices were at twenty-year record lows.  
Since fuel ethanol replaces gasoline, changes in gasoline prices have 
historically resulted in corresponding changes in the price paid for ethanol.  
The Company anticipates some increase in spot prices over the summer months 
from recent increases in prices for crude oil and gasoline, however most of 
the production from all three plants through August is already contracted for
sale.

The Company is currently exploring ways to reduce the impact of these 
seasonal price changes, and to that end has contracted almost 25% of its 
annual production capacity in 12 month, flat price sales agreements.  Other 
forward contracts also exist on variable pricing terms.  The Company is also 
emphasizing the marketing of its higher quality, industrial grade ethanol, 
with some recent success.  This market tends to be somewhat less seasonal in 
pricing than fuel ethanol, and typically provides higher margins.

Another factor, which could affect demand, and to some extent reduce seasonal 
price fluctuations in the industry, is the continuing effort to open the 
California market to ethanol.  In March of 1999, California Governor Gray 
Davis announced a decision to ban MTBE (the oxygenate which is ethanol's 
primary competitor) from California gasoline by December 31, 2001.  
California is the largest state gasoline market, but currently blends very 
little ethanol due to a state imposed oxygen cap.  At the same time, 
oxygenated fuel is required by Federal law in certain areas of air quality 
"non-attainment."  If the ethanol industry is successful in replacing a 
substantial portion of the California MTBE market, demand for ethanol would 
be significantly increased, and corresponding price increases would be 
expected.

Grain feedstock prices continue to be very favorable for the ethanol industry 
as compared to prior years.  Corn prices achieved ten-year record low levels 
in the early fall of 1998 but have experienced modest price fluctuations 
since that time.  Recent crop reports still project another large corn crop, 
as well as a large carryout for the next crop year, and the Company still 
anticipates some softening of the corn market into July of 1999.  As always, 
weather, exports, and competing feeds all have potentially major effects on 
the ultimate grain price, and any unexpected change in those factors could 
adversely affect the price which the Company pays for its feedstock.  
Pursuant to its risk management program, the Company has contracted grain 
deliveries for all three plants for a substantial portion of calendar 1999, 
and has priced most of its grain requirements through June 1999.  

Prices for the Company's distillers' grain by-products (DDGS), which 
historically fluctuate with the price of corn, are currently substantially 
lower than prices received during fiscal 1998.  While the Company has some 
forward contracts for its DDGS, most is sold seasonally, and it is expected 
that feed proteins will again show a traditional price decline into the 
summer season as cattle leave the feedyards for pasture.  Prices for DDGS 
traditionally increase again in the late fall and winter, and the Company 
anticipates that to occur again this year.  Fluctuations in the price of DDGS 
have historically provided some hedge for the Company against the possibility 
of an increase in grain prices, although the correlation between the two has 
not been as direct as in previous years.



<PAGE>



Year 2000 Issues

The Company continues to assess its exposure to year 2000 (Y2K) compliance 
issues.  In the manufacturing process, preliminary tests have demonstrated 
that the main computer process systems continue to operate without 
interruption and with no identifiable disruption to processing controls.  The
cost of purchasing Y2K upgrades for this software, which the Company may 
acquire as part of its routine upgrades and maintenance contracts is 
approximately $11,000.

In addition, diagnostic procedures are on going at the plant level to 
identify and test any imbedded technologies, which may also require some type 
of upgrade or replacement due to the Y2K issue.  This phase of the Company's 
Y2K compliance program is expected to be completed during the second quarter 
of calendar 1999.  Due to insufficient information, the Company is currently 
unable to estimate the impact on operations, if any, or estimate the cost for 
potential Year 2000 issues related to imbedded chips and similar 
technologies.

During fiscal 1998, the Company upgraded its existing financial reporting 
software to a Y2K compliant version, at a cost of approximately $5,000.  
Upgrades to other existing financial software packages and PC hardware for 
compliance with Year 2000 are estimated not to exceed approximately $10,000.


The Company has also begun the process of making inquiries and gathering 
information regarding Y2K compliance exposures faced by its vendors and 
customers.  Management has insufficient information at this time to assess 
the degree to which vendors and customers have addressed or are addressing 
Y2K compliance issues, and to fully evaluate the risk of disruption to 
operations that those businesses might face as a result of Year 2000 issues.

At March 31, 1999, the Company is in the process of developing contingency 
plans to handle the most reasonably likely "worst case" scenarios.  Due to 
the risk of loss of certain utilities and the currently unknown status of the 
ability of the utility companies to continue to supply needed services, the 
Company expects to finalize the development of a contingency plan by mid-
1999.  Except for the services previously noted, no major part or critical 
operation of any segment of the Company's business is reliant on a single 
source for raw materials, supplies, or services.  Nonetheless, there can be 
no assurance that the Company will be able to identify all Y2K compliance 
risks, or, that all contingency plans will assure uninterrupted business 
operations across the millennium.




<PAGE>



PART II           OTHER INFORMATION


Item 1.  LEGAL PROCEEDINGS

During the quarter ended March 31, 1999, no new legal proceedings were 
instigated against the Company which would be considered other than in the 
ordinary course of the Company's business.  However, on April 7, 1999 a 
lawsuit was filed by Craig J. Wedde against approximately 34 separate 
defendants, most of which are involved in the liquor industry, either as 
manufacturers or distributors.  The case is filed in the circuit court of 
Fond Du Lac County, Wisconsin, as Case No. 99-CV136, and is captioned Craig 
J. Wedde vs. Valley Warehousing, Inc., et al.  High Plains Corporation is 
named as one of the defendants in this case as an alcohol manufacturer, and 
the basic premise of the complaint appears to be that alcohol products have 
negatively impacted the health and welfare of the residents of the state of 
Wisconsin.  This lawsuit was filed by Mr. Wedde without the benefit of legal 
counsel, and requests $1 billion in monetary damages, together with 
additional civil penalties, declaratory and injunctive relief.  

High Plains has conferred with many of the other defendants named in this 
lawsuit, and a joint response to the complaint is being prepared.  Virtually 
all the defendants agree that the complaint is completely without merit, and 
will be vigorously contested on both procedural and substantive issues.  The 
Company believes that the ultimate resolution of this suit will not have a 
material adverse effect on the Company's financial condition.
 

Item 2.  CHANGES IN SECURITIES

Not applicable.


Item 3.  DEFAULTS UPON SENIOR SECURITIES

Not applicable.


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

None.
 

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 20, 1999    Company announced second quarter earnings and 
                        earnings per share.

    March 18, 1999      Company announced Department of Energy research 
                        grants.