##### Table of Contents



UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
 Washington, D.C. 20549
 FORM 10-Q
 þ
    
    Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934.
 For the quarterly period ended March 31, 2010.
 OR
 o
    
    Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934.
 For the transition period from  to .
 COMMISSION FILE NUMBER 00051965
 WESTERN IOWA ENERGY, LLC
  Iowa
(State or other jurisdiction of 
incorporation or organization)
    
    41-2143913
(I.R.S. Employer Identification No.)1220 S. Center Street, P.O. Box 399
Wall Lake, Iowa
(Address of principal executive offices)
    
    51466
(Zip Code)
 (712) 664-2173
 (Former name, former address and former fiscal year, if changed since last report)
 þ o
 o Yes o No
  Large Accelerated Filer o
    
    Accelerated Filer o
    
    Non-Accelerated Filer þ
    
    Smaller Reporting Company o
 o þ




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##### 



INDEX
 PART I.  FINANCIAL INFORMATION
    
    
    3Item 1. Financial Statements
    
    
    3Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations
    
    
    19Item 3. Quantitative and Qualitative Disclosures About Market Risk
    
    
    26Item 4. Controls and Procedures
    
    
    28PART II  OTHER INFORMATION
    
    
    28Item 1. Legal Proceedings
    
    
    28Item 1A. Risk Factors
    
    
    29Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
    
    
    29Item 3. Defaults Upon Senior Securities
    
    
    29Item 4. (Removed and Reserved)
    
    
    30Item 5. Other Information
    
    
    30Item 6. Exhibits
    
    
    30Exhibit 10.1Exhibit 31.1Exhibit 31.2Exhibit 32.1Exhibit 32.2
   2




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##### Table of Contents



PART I.  FINANCIAL INFORMATION
 
 Item 1.
    
    Financial Statements
 WESTERN IOWA ENERGY, LLC
 BALANCE SHEETS
 March 31,
    
    
    December 31,2010
    
    
    2009(UNAUDITED)ASSETSCURRENT ASSETSCash and cash equivalents
    
    $
    36,579
    
    
    $
    300Margin deposits
    
    
    251,735
    
    
    
    58,445Trade accounts receivable  related party
    
    
    27,667
    
    
    
    3,106,676Other receivables
    
    
    69,734
    
    
    
    387,883Incentive receivables
    
    
    
    
    
    
    2,946,499Inventory
    
    
    3,129,444
    
    
    
    383,528Prepaid expenses
    
    
    203,177
    
    
    
    540,890Total current assets
    
    
    3,718,336
    
    
    
    7,424,221PROPERTY, PLANT AND EQUIPMENTLand and land improvements
    
    
    1,435,928
    
    
    
    1,364,842Office building and equipment
    
    
    645,542
    
    
    
    645,542Plant and process equipment
    
    
    33,877,568
    
    
    
    33,854,309Construction in progress
    
    
    20,252
    
    
    
    8,136Total, at cost
    
    
    35,979,290
    
    
    
    35,872,829Less accumulated depreciation
    
    
    8,231,418
    
    
    
    7,669,210Total property, plant and equipment
    
    
    27,747,872
    
    
    
    28,203,619OTHER ASSETSLand options
    
    
    
    
    
    
    596Other investments
    
    
    124,078
    
    
    
    107,198Loan origination fees, net of amortization
    
    
    64,830
    
    
    
    69,355Total other assets
    
    
    188,908
    
    
    
    177,149TOTAL ASSETS
    
    $
    31,655,116
    
    
    $
    35,804,989LIABILITIES AND MEMBERS EQUITYCURRENT LIABILITIESChecks issued in excess of bank balance
    
    $
    
    
    
    $
    333,008Accounts payable:Trade
    
    
    651,160
    
    
    
    824,979Related party
    
    
    22,007
    
    
    
    88,277Current portion of long-term debt
    
    
    2,009,722
    
    
    
    2,459,722Derivative instruments
    
    
    167,903
    
    
    
    2,587Accrued interest
    
    
    9,005
    
    
    
    22,226Accrued wages and benefits
    
    
    100,398
    
    
    
    107,664Accrued payroll taxes
    
    
    5,480
    
    
    
    3,678Accrued expenses  related party
    
    
    85,802
    
    
    
    103,537Other current liabilities
    
    
    29,490
    
    
    
    46,304Total current liabilities
    
    
    3,080,967
    
    
    
    3,991,982LONG-TERM LIABILITIESLong-term debt, less current portion above
    
    
    954,166
    
    
    
    3,262,222Total liabilities
    
    
    4,035,133
    
    
    
    7,254,204MEMBERS EQUITYContributed capital
    
    
    23,516,376
    
    
    
    23,516,376Retained earnings
    
    
    4,103,607
    
    
    
    5,034,409Total members equity
    
    
    27,619,983
    
    
    
    28,550,785TOTAL LIABILITIES AND MEMBERS EQUITY
    
    $
    31,655,116
    
    
    $
    35,804,989
   3




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WESTERN IOWA ENERGY, LLC
 STATEMENTS OF OPERATIONS
 Three Months Ended
    
    
    Three Months EndedMarch 31, 2010
    
    
    March 31, 2009REVENUESRelated parties
    
    $
    3,539,041
    
    
    $
    3,070,068Incentive funds
    
    
    
    
    
    
    896,069Total revenues
    
    
    3,539,041
    
    
    
    3,966,137COST OF SALES
    
    
    3,996,213
    
    
    
    4,260,768Gross loss
    
    
    (457,172
    )
    
    
    (294,631
    )OPERATING EXPENSESConsulting and professional fees
    
    
    183,377
    
    
    
    126,379Office and administrative expenses
    
    
    326,701
    
    
    
    333,731Total operating expenses
    
    
    510,078
    
    
    
    460,110OTHER INCOME (EXPENSE)Interest income
    
    
    1,836
    
    
    
    408Interest expense
    
    
    (31,640
    )
    
    
    (91,893
    )Grant income
    
    
    
    
    
    
    100,000Patronage dividends
    
    
    66,252
    
    
    
    116,734Total other income
    
    
    36,448
    
    
    
    125,249NET LOSS
    
    $
    (930,802
    )
    
    $
    (629,492
    )BASIC AND DILUTED LOSS PER UNIT
    
    $
    (35.19
    )
    
    $
    (23.80
    )WEIGHTED AVERAGE UNITS OUTSTANDING,
BASIC AND DILUTED
    
    
    26,447
    
    
    
    26,447
   4




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WESTERN IOWA ENERGY, LLC
 STATEMENTS OF CASH FLOWS
 Three Months Ended
    
    
    Three Months EndedMarch 31, 2010
    
    
    March 31, 2009CASH FLOWS FROM OPERATING ACTIVITIESNet loss
    
    $
    (930,802
    )
    
    $
    (629,492
    )Adjustments to reconcile net loss to net cash
provided by operating activitiesDepreciation and amortization
    
    
    566,733
    
    
    
    557,934Non cash portion of patronage dividends
    
    
    (16,880
    )
    
    
    (26,303
    )Non cash forgiveness of debt
    
    
    
    
    
    
    (100,000
    )Effects of changes in operating assets and liabilitiesMargin deposits
    
    
    (193,290
    )
    
    
    (34,089
    )Trade accounts receivable  related party
    
    
    3,079,009
    
    
    
    865,112Other receivables
    
    
    318,149
    
    
    
    (77,918
    )Incentive receivables
    
    
    2,946,499
    
    
    
    2,137Inventory
    
    
    (2,745,916
    )
    
    
    1,039,625Derivative instruments
    
    
    165,316
    
    
    
    60,812Prepaid expenses and other assets
    
    
    337,713
    
    
    
    48,675Accounts payable
    
    
    (240,089
    )
    
    
    (52,191
    )Accrued interest
    
    
    (13,221
    )
    
    
    (3,342
    )Accrued wages and benefits
    
    
    (7,266
    )
    
    
    45,984Accrued payroll taxes
    
    
    1,802
    
    
    
    1,452Accrued expenses  related party
    
    
    (17,735
    )
    
    
    Other current liabilities
    
    
    (16,814
    )
    
    
    (16,774
    )Net cash provided by operating activities
    
    
    3,233,208
    
    
    
    1,681,622CASH FLOWS FROM INVESTING ACTIVITIESPurchase of property, plant and equipment, including
construction in progress
    
    
    (105,865
    )
    
    
    (4,669
    )CASH FLOWS FROM FINANCING ACTIVITIESNet decrease in checks issued in excess of bank balance
    
    
    (333,008
    )
    
    
    Proceeds from long-term debt
    
    
    1,150,000
    
    
    
    1,700,000Payments on long-term debt
    
    
    (3,908,056
    )
    
    
    (3,328,055
    )Net cash used in financing activities
    
    
    (3,091,064
    )
    
    
    (1,628,055
    )NET INCREASE IN CASH AND CASH EQUIVALENTS
    
    
    36,279
    
    
    
    48,898CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD
    
    
    300
    
    
    
    66,400CASH AND CASH EQUIVALENTS, END OF PERIOD
    
    $
    36,579
    
    
    $
    115,298
   5




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WESTERN IOWA ENERGY, LLC
 NOTES TO FINANCIAL STATEMENTS
 March 31, 2010
 NOTE 1  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
  Use of Estimates in Preparing Financial Statements
  Basis of Accounting
    Revenue Recognition
   Cash and Cash Equivalents
   Accounts Receivable
   6




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WESTERN IOWA ENERGY, LLC
NOTES TO FINANCIAL STATEMENTS
March 31, 2010
 NOTE 1  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
 Accounts Receivable
  Derivative Instruments and Hedging Activities
 Derivatives and Hedging,
 Inventories
  Property, Plant, and Equipment
   YearsLand improvements
    
    
    2040Office building
    
    
    540Office equipment
    
    
    520Plant and process equipment
    
    
    1040
   7




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WESTERN IOWA ENERGY, LLC
NOTES TO FINANCIAL STATEMENTS
March 31, 2010
 NOTE 1  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
 Property, Plant, and Equipment
  Loan Origination Fees
  Other Investments
  Grant Income
  Income Taxes
  Loss Per Unit
   8




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WESTERN IOWA ENERGY, LLC
NOTES TO FINANCIAL STATEMENTS
March 31, 2010
 NOTE 1  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
 Cost of Sales
  Shipping and Handling Costs
  Environmental Liabilities
  Fair Value of Financial Instruments
  Current assets and current liabilities
 Long-term debt
 New Accounting Standards
 Subsequent Events
  9




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WESTERN IOWA ENERGY, LLC
NOTES TO FINANCIAL STATEMENTS
March 31, 2010
 NOTE 1  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
 New Accounting Standards
 Fair Value Measurements and Disclosures
 Subsequent Events
 NOTE 2  INCENTIVE PAYMENTS AND RECEIVABLE
   NOTE 3  INVENTORY
  March 31,
    
    
    December 31,2010
    
    
    2009Raw material
    
    $
    414,986
    
    
    $
    273,791Work in process
    
    
    725,649
    
    
    
    49,398Finished goods
    
    
    1,988,809
    
    
    
    60,339Total
    
    $
    3,129,444
    
    
    $
    383,528
  10




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WESTERN IOWA ENERGY, LLC
NOTES TO FINANCIAL STATEMENTS
March 31, 2010
 NOTE 4  DEBT AND FINANCING
 Long-Term Debt
  March 31,
    
    
    December 31,2010
    
    
    2009Note payable to Farm Credit Services of America and
CoBank under term note agreement  see details
below
    
    $
    1,900,000
    
    
    $
    2,350,000Note payable to Farm Credit Services of America and
CoBank under reducing revolving credit note  see
details below
    
    
    350,000
    
    
    
    2,630,000Note payable to the Iowa Department of Economic Development  see details below
    
    
    200,000
    
    
    
    207,500Note payable to Glidden Rural Electric Cooperative  see details below
    
    
    513,888
    
    
    
    534,444Total
    
    
    2,963,888
    
    
    
    5,721,944Less current portion
    
    
    2,009,722
    
    
    
    2,459,722Long-term portion
    
    $
    954,166
    
    
    $
    3,262,222
  2011
    
    $
    2,009,7222012
    
    
    112,2222013
    
    
    224,7222014
    
    
    82,2222015
    
    
    202,222Thereafter
    
    
    332,778Total
    
    $
    2,963,888
  11




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WESTERN IOWA ENERGY, LLC
NOTES TO FINANCIAL STATEMENTS
March 31, 2010
 NOTE 4  DEBT AND FINANCING
     12




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WESTERN IOWA ENERGY, LLC
NOTES TO FINANCIAL STATEMENTS
March 31, 2010
 NOTE 4  DEBT AND FINANCING
  NOTE 5  MEMBERS EQUITY
  NOTE 6  CASH FLOW DISCLOSURES
  Three Months
    
    
    Three MonthsEnded
    
    
    EndedMarch 31, 2010
    
    
    March 31, 2009Cash paid for interest
    
    $
    44,861
    
    
    $
    95,235
 NOTE 7  RELATED PARTY TRANSACTIONS
    13




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WESTERN IOWA ENERGY, LLC
NOTES TO FINANCIAL STATEMENTS
March 31, 2010
 NOTE 7  RELATED PARTY TRANSACTIONS
  NOTE 8  LEASE COMMITMENTS
  2011
    
    $
    35,6272012
    
    
    8,907Total
    
    $
    44,534
  NOTE 9  RETIREMENT AND SAVINGS PLAN
  NOTE 10  FAIR VALUE OF FINANCIAL INSTRUMENTS
  
    
    Level 1Unadjusted quoted prices for identical assets and liabilities in active
markets;
    
    Level 2Quoted prices for similar assets and liabilities in active markets (other
than those included in Level 1) which are observable for the asset or liability, either
directly or indirectly; and
    
    Level 3Valuations derived from valuation techniques in which one or more significant
inputs or significant value drivers are unobservable.
  14




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WESTERN IOWA ENERGY, LLC
NOTES TO FINANCIAL STATEMENTS
March 31, 2010
 NOTE 10  FAIR VALUE OF FINANCIAL INSTRUMENTS
  March 31, 2010SignificantQuoted Prices in
    
    
    Other
    
    
    SignificantCarrying
    
    
    Active Markets for
    
    
    Observable
    
    
    UnobservableAmount on
    
    
    Identical Assets
    
    
    Inputs
    
    
    InputsBalance Sheet
    
    
    (Level 1)
    
    
    (Level 2)
    
    
    (Level 3)Financial liabilities:Commodity derivatives
    
    $
    (167,903
    )
    
    $
    (167,903
    )
    
    $
    
    
    
    $
    
 December 31, 2009SignificantQuoted Prices in
    
    
    Other
    
    
    SignificantCarrying
    
    
    Active Markets for
    
    
    Observable
    
    
    UnobservableAmount on
    
    
    Identical Assets
    
    
    Inputs
    
    
    InputsBalance Sheet
    
    
    (Level 1)
    
    
    (Level 2)
    
    
    (Level 3)Financial liabilities:Commodity derivatives
    
    $
    (2,587
    )
    
    $
    (2,587
    )
    
    $
    
    
    
    $
    
  NOTE 11  DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES
 Derivatives and Hedging,
  15




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WESTERN IOWA ENERGY, LLC
NOTES TO FINANCIAL STATEMENTS
March 31, 2010
 NOTE 11  DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES
 Objectives and Strategies for Holding Derivative Instruments
  Commodity Risk Management
  Accounting for Derivative Instruments and Hedging Activities
   Liability Derivatives
    
    
    Liability DerivativesMarch 31, 2010
    
    
    December 31, 2009Balance Sheet
    
    
    
    
    
    Balance SheetLocation
    
    Fair Value
    
    
    Location
    
    Fair ValueCommodity contracts Heat oil swaps
    
    Current liabilities
    
    $
    (167,903
    )
    
    Current liabilities
    
    $
    (2,587
    )
  Derivative (Gain) Loss
    
    
    Derivative (Gain) LossThree Months Ended
    
    
    Three Months EndedMarch 31, 2010
    
    
    March 31, 2009Statement of
    
    
    
    
    
    Statement ofOperations
    
    
    
    
    
    OperationsLocation
    
    (Gain) Loss
    
    
    Location
    
    (Gain) LossCommodity contracts Heat oil swaps
    
    Cost of sales
    
    $
    20,027
    
    
    Cost of sales
    
    $
    (124,278
    )
  16




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WESTERN IOWA ENERGY, LLC
NOTES TO FINANCIAL STATEMENTS
March 31, 2010
 NOTE 12  UNCERTAINTIES
     NOTE 13  GAIN CONTINGENCIES
   17




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WESTERN IOWA ENERGY, LLC
NOTES TO FINANCIAL STATEMENTS
March 31, 2010
 NOTE 14  ASSET PURCHASE AGREEMENT
   NOTE 15  SUBSEQUENT EVENTS
   18




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Item 2.
    
    Managements Discussion and Analysis of Financial Condition and Results of Operations.
  Cautionary Statements Regarding Forward Looking Statements
  
    
    Overcapacity within the biodiesel industry resulting in increased competition
and costs for feedstock and/or decreased prices for our biodiesel and glycerin;
 
    
    Competition with other manufacturers in the biodiesel industry;
 
    
    The availability and adequacy of our cash flow to meet our requirements;
 
    
    Results of our hedging strategies;
 
    
    Changes in interest rates and the availability of credit to support capital
improvements, development, expansion, and operations;
 
    
    Changes in the amounts available under our credit facilities with Farm Credit;
 
    
    Our ability to keep up with the latest technology for the production of biodiesel;
 
    
    Decrease in the demand for biodiesel;
 
    
    Changes in plant production capacity or technical difficulties in operating the
plant;
 
    
    Actual biodiesel and glycerin production varying from expectations;
 
    
    Availability and cost of products and raw materials, particularly soybean oil and
animal fats;
 
    
    Changes in the price and market for biodiesel and its co-products;
 
    
    Our ability to market and our reliance on third parties to market our products;
 
    
    Fluctuations in petroleum prices;
 
    
    Our ability to identify and enter into contractual arrangements with third parties
to procure feedstock for our plant and to market our products;
 
    
    Competition from alternative fuels and alternative fuel additives;
 
    
    Changes in our business strategy, capital improvement, or development plans;
 
    
    Consequences of the domestic and global economic downturn and recent financial
crisis;
 
    
    Our ability to generate free cash flow to invest in our business and service our
debt;
 
    
    Changes in general economic conditions or the occurrence of certain events causing
an economic impact in the agriculture, oil, or transportation industries;
 
    
    Changes in the environmental regulations or in our ability to comply with the
environmental regulations that apply to our plant operations;
 
    
    Changes and advances in biodiesel production technology;
 
    
    Our ability to continue to export our biodiesel;
 
    
    Changes in federal, state, or local incentives for biodiesel production, including
without limitation the federal biodiesel blenders tax credit;
 
    
    Changes to the rules related to the Renewable Fuels Standard;
 
    
    Our ability to successfully re-start operations following the idling of our plant;
  19




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
    
    The imposition of tariffs or other duties on biodiesel imported into Europe;
 
    
    Our ability to comply with the financial covenants in our loan agreements;
 
    
    Changes to our operations related to the rejection of the proposed consolidation
with REG, including without limitation our ability to retain and/or train a general
manager for the plant, our ability to procure feedstock for our plant, and our ability
to market and sell our finished products; and
 
    
    Other factors described elsewhere in this report.
  Overview
  Liquidity and Capital Resources  Indebtedness.
    20




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Liquidity and Capital Resources  Amended and Restated
Asset Purchase Agreement with Renewable Energy Group, Inc .
 Results of Operations for the Three Months Ended March 31, 2010 and 2009
  Three Months Ended
    
    
    Three Months EndedMarch 31, 2010
    
    
    March 31, 2009(Unaudited)
    
    
    (Unaudited)Statement of Operations Data
    
    Amount
    
    
    %
    
    
    Amount
    
    
    %Revenues
    
    $
    3,539,041
    
    
    
    100.00
    %
    
    $
    3,966,137
    
    
    
    100.00
    %Cost of Sales
    
    $
    3,996,213
    
    
    
    112.92
    %
    
    $
    4,260,768
    
    
    
    107.43
    %Gross Profit (Loss)
    
    $
    (457,172
    )
    
    
    (12.92
    %)
    
    $
    (294,631
    )
    
    
    (7.43
    %)Operating Expenses
    
    $
    510,078
    
    
    
    14.41
    %
    
    $
    460,110
    
    
    
    11.60
    %Other Income (Expense)
    
    $
    36,448
    
    
    
    1.03
    %
    
    $
    125,249
    
    
    
    3.16
    %Net Income (Loss)
    
    $
    (930,802
    )
    
    
    (26.30
    %)
    
    $
    (629,492
    )
    
    
    (15.87
    %)
 Revenues
  Three Months Ended
    
    
    Three Months EndedMarch 31, 2010
    
    
    March 31, 2009% of
    
    
    
    
    
    
    % ofRevenue Sources
    
    Amount
    
    
    Revenues
    
    
    Amount
    
    
    RevenuesBiodiesel Sales
    
    $
    3,040,322
    
    
    
    85.91
    %
    
    $
    3,809,079
    
    
    
    96.04
    %Glycerin Sales
    
    $
    135,338
    
    
    
    3.83
    %
    
    $
    88,003
    
    
    
    2.22
    %Fatty Acid Sales
and Soapstock Sales
    
    $
    227,450
    
    
    
    6.43
    %
    
    $
    69,055
    
    
    
    1.74
    %Custom Processing
and Storage
    
    $
    135,931
    
    
    
    3.83
    %
    
    $
    
    
    
    
    
    %Total Revenues
    
    $
    3,539,041
    
    
    
    100.00
    %
    
    $
    3,966,137
    
    
    
    100.00
    %
  21




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Cost of Sales
    22




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Operating Expense
  Other Income (Expenses)
  Changes in Financial Condition for the Three Months Ended March 31, 2010
  March 31, 2010
    
    
    December 31, 2009Current Assets
    
    $
    3,718,336
    
    
    $
    7,424,221Current Liabilities
    
    $
    3,080,967
    
    
    $
    3,991,982Long-Term Debt
    
    $
    954,166
    
    
    $
    3,262,222Members Equity
    
    $
    27,619,983
    
    
    $
    28,550,785
 Current Assets
 Current Liabilities
 Long-Term Debt
 Members Equity
  23




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Liquidity and Capital Resources
 Cash Flows
  2010
    
    
    2009Net cash provided by operating activities
    
    $
    3,233,208
    
    
    $
    1,681,622Net cash used in investing activities
    
    $
    (105,865
    )
    
    $
    (4,669)
    )Net cash used in financing activities
    
    $
    (3,091,064
    )
    
    $
    (1,628,055
    )Net increase in cash and equivalents
    
    $
    36,279
    
    
    $
    48,898
 Operating Cash Flows
  Liquidity and Capital Resources  Indebtedness .
 Investing Cash Flows
  Financing Cash Flows
  Indebtedness
 Short-Term Debt Sources
  Long-Term Debt Sources
   24




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##### Table of Contents



Amended and Restated Asset Purchase Agreement with Renewable Energy Group, Inc.
   25




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##### Table of Contents



Subsequent Events
    Critical Accounting Estimates
  Inventories.
 Long-Lived Assets.
  Off-Balance Sheet Arrangements
  
 Item 3.
    
    Quantitative and Qualitative Disclosures About Market Risk.
 Derivatives and Hedging
   26




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##### Table of Contents



Interest Rate Risk
 Item 2  MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS  Liquidity and Capital Resources, Indebtedness.
  Outstanding Variable
    
    
    
    
    Interest Rate at
    
    
    Interest Rate Following
    
    
    Annual Adverse ChangeRate Debt at 3/31/10
    
    
    
    
    March 31, 2010
    
    
    10% Adverse Change
    
    
    to Income$
    1,900,000
    
    
    
    
    
    3.5
    %
    
    
    3.85
    %
    
    $
    6,650$
    350,000
    
    
    
    
    
    3.5
    %
    
    
    3.85
    %
    
    $
    1,225
 Commodity Price Risk
      27




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##### Table of Contents



Effect ofHypotheticalAdverse Change -Fair Value
    
    
    Market RiskMarch 31, 2010
    
    $
    2,490,936
    
    
    $
    249,094March 31, 2009
    
    $
    1,469,225
    
    
    $
    146,923
 
 Item 4.
    
    Controls and Procedures.
 Disclosure Controls and Procedures
  Changes in Internal Controls
  
 PART II  OTHER INFORMATION
 
 Item 1.
    
    Legal Proceedings.
    28




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##### Table of Contents



Item 1A.
    
    Risk Factors
 MANAGEMENTS DISCUSSION AND ANALYSIS
 The expiration of the biodiesel blenders federal tax credit could hinder our ability to
operate at a profit and reduce the value of our units.
 If our biodiesel plant is idled for a sustained period of time, we might not be able to meet
our current liabilities and may experience losses.
 If our biodiesel plant resumes production, we may have difficulty in finding customers to
purchase our biodiesel.
 Further
reductions in the amounts available under our credit facilities with Farm Credit may cause us to
be unable to meet our capital needs.
 
 Item 2.
    
    Unregistered Sales of Equity Securities and Use of Proceeds.
  
 Item 3.
    
    Defaults Upon Senior Securities.
   29




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##### Table of Contents



Item 4.
    
    (Removed and Reserved).
  
 Item 5.
    
    Other Information.
  
 Item 6.
    
    Exhibits. The following exhibits are included herein:
 Exhibit No.
    
    Exhibit10.1
    
    
    Second Extension to Management and
Operational Services Agreement between Western
Iowa Energy, LLC and Renewable Energy Group,
Inc., REG Services Group, LLC and REG Marketing &
Logistics Group, LLC, dated May 2, 2010.31.1
    
    
    Certificate Pursuant to 17 CFR 240.15d-14(a).31.2
    
    
    Certificate Pursuant to 17 CFR 240.15d-14(a).32.1
    
    
    Certificate Pursuant to 18 U.S.C. § 1350.32.2
    
    
    Certificate Pursuant to 18 U.S.C. § 1350.
 
 SIGNATURES
  WESTERN IOWA ENERGY, LLCDate: May 14, 2010
    /s/ William J. HoranWilliam J. HoranChairman, President and Director
(Principal Executive Officer)Date: May 14, 2010
    /s/ Joe NepplJoe NepplChief Financial Officer(Principal Financial and Accounting Officer)  30