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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
 Washington, D.C. 20549
 FORM 10-QSB
 þ
    
    Quarterly report under Section 13 or 15(d) of the Securities
Exchange Act of 1934.
 For the fiscal quarter ended June 30, 2007.
 OR
 o
    
    Transition report under Section 13 or 15(d) of the Exchange Act.
 For the transition period from  to  .
 COMMISSION FILE NUMBER 00051277
 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 51466
 (712) 664-2173
 þ o
 o þ
  o þ




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##### 



INDEX
 PART I  FINANCIAL INFORMATION
    
    
    3Item 1. Financial Statements
    
    
    3Item 2. Managements Discussion and Analysis or Plan of Operation
    
    
    15Item 3. and Item 3A(T). Controls and Procedures
    
    
    26PART II  OTHER INFORMATION
    
    
    27Item 1. Legal Proceedings
    
    
    27Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
    
    
    27Item 3. Defaults Upon Senior Securities
    
    
    27Item 4. Submission of Matters to a Vote of Security Holders
    
    
    27Item 5. Other Information
    
    
    27Item 6. Exhibits
    
    
    29Exhibit 10.1Exhibit 10.2Exhibit 10.3Exhibit 31.1Exhibit 31.2Exhibit 32.1Exhibit 32.2
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PART I  FINANCIAL INFORMATION
 
 Item 1. Financial Statements.
 WESTERN IOWA ENERGY, LLC
BALANCE SHEET
June 30, 2007
 ASSETSCURRENT ASSETSCash
    
    $
    19,934Margin deposits
    
    
    1,071,232Trade accounts receivable  related party, net of allowance for doubtful accounts
    
    
    10,585,016Other receivables
    
    
    4,225Incentive receivable
    
    
    542,298Inventory
    
    
    5,050,253Prepaid expenses and other assets
    
    
    49,945Total current assets
    
    
    17,322,903PROPERTY, PLANT AND EQUIPMENTLand and land improvements
    
    
    1,312,540Office building and equipment
    
    
    638,589Plant and process equipment
    
    
    33,151,276Construction in progress
    
    
    5,921Total, at cost
    
    
    35,108,326Less accumulated depreciation
    
    
    2,176,327Total property, plant and equipment
    
    
    32,931,999OTHER ASSETSLand options
    
    
    596Other investments
    
    
    33,810Loan origination fees, net of amortization
    
    
    114,595Total other assets
    
    
    149,001TOTAL ASSETS
    
    $
    50,403,903LIABILITIES AND MEMBERS EQUITYCURRENT LIABILITIESAccounts payable:Trade
    
    $
    3,390,235Related party
    
    
    196,441Current portion of long-term debt
    
    
    4,241,648Derivative instruments
    
    
    534,380Accrued interest
    
    
    118,501Accrued wages and benefits
    
    
    50,704Accrued payroll taxes
    
    
    6,997Accrued expenses  related party
    
    
    94,913Total current liabilities
    
    
    8,633,819LONG-TERM LIABILITIESLong-term debt, less current portion above
    
    
    12,590,852Total liabilities
    
    
    21,224,671MEMBERS EQUITYContributed capital
    
    
    23,516,376Retained earnings
    
    
    5,662,856Total members equity
    
    
    29,179,232TOTAL LIABILITIES AND MEMBERS EQUITY
    
    $
    50,403,903
 
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WESTERN IOWA ENERGY, LLC
STATEMENTS OF OPERATIONS
 Three Months
    
    
    Six Months
    
    
    Three Months
    
    
    Six MonthsEnded
    
    
    Ended
    
    
    Ended
    
    
    EndedJune 30, 2007
    
    
    June 30, 2007
    
    
    June 30, 2006
    
    
    June 30, 2006REVENUESRelated parties
    
    $
    20,467,166
    
    
    $
    34,084,878
    
    
    $
    489,107
    
    
    $
    489,107Incentive funds
    
    
    4,333,044
    
    
    
    4,970,312
    
    
    
    144,478
    
    
    
    144,47824,800,210
    
    
    
    39,055,190
    
    
    
    633,585
    
    
    
    633,585COST OF SALES
    
    
    22,234,384
    
    
    
    35,923,065
    
    
    
    491,581
    
    
    
    491,581Gross profit
    
    
    2,565,826
    
    
    
    3,132,125
    
    
    
    142,004
    
    
    
    142,004OPERATING EXPENSESConsulting and professional fees
    
    
    125,264
    
    
    
    207,472
    
    
    
    48,005
    
    
    
    89,703Office and administrative expenses
    
    
    450,290
    
    
    
    806,077
    
    
    
    127,462
    
    
    
    240,805Total operating expenses
    
    
    575,554
    
    
    
    1,013,549
    
    
    
    175,467
    
    
    
    330,508OTHER INCOME (EXPENSE)Interest income
    
    
    2,936
    
    
    
    12,085
    
    
    
    3,853
    
    
    
    39,499Interest expense
    
    
    (395,481
    )
    
    
    (749,549
    )
    
    
    (48
    )
    
    
    (186
    )Patronage dividends
    
    
    31,810
    
    
    
    105,866
    
    
    
    
    
    
    
    Gain on sale of asset
    
    
    
    
    
    
    
    
    
    
    2,800
    
    
    
    2,800Other income
    
    
    
    
    
    
    
    
    
    
    5,000
    
    
    
    15,300Total other income (expense)
    
    
    (360,735
    )
    
    
    (631,598
    )
    
    
    11,605
    
    
    
    57,413NET INCOME (LOSS)
    
    $
    1,629,537
    
    
    $
    1,486,978
    
    
    $
    (21,858
    )
    
    $
    (131,091
    )BASIC AND DILUTED
EARNINGS (LOSS) PER UNIT
    
    $
    61.62
    
    
    $
    56.22
    
    
    $
    (0.86
    )
    
    $
    (5.15
    )WEIGHTED AVERAGE UNITS
OUTSTANDING, BASIC
AND DILUTED
    
    
    26,447
    
    
    
    26,447
    
    
    
    25,447
    
    
    
    25,447
 
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WESTERN IOWA ENERGY, LLC
STATEMENTS OF CASH FLOWS
 Six Months
    
    
    Six MonthsEnded
    
    
    EndedJune 30, 2007
    
    
    June 30, 2006CASH FLOWS FROM OPERATING ACTIVITIESNet income (loss)
    
    $
    1,486,978
    
    
    $
    (131,091
    )Adjustments to reconcile net income (loss) to net cash
provided by (used in) operating activitiesDepreciation and amortization
    
    
    1,089,837
    
    
    
    297,272Provision for bad debts
    
    
    6,664
    
    
    
    Gain on sale of asset
    
    
    
    
    
    
    (2,800
    )Non cash portion of patronage dividends
    
    
    (31,810
    )
    
    
    Effects of changes in operating assets and liabilitiesMargin deposits
    
    
    (803,972
    )
    
    
    Trade accounts receivable  related party
    
    
    (6,260,331
    )
    
    
    (489,107
    )Other receivables
    
    
    (4,225
    )
    
    
    (144,478
    )Incentive receivables
    
    
    55,580
    
    
    
    (90,000
    )Inventory
    
    
    2,745,930
    
    
    
    (3,987,796
    )Derivative instruments
    
    
    1,802,129
    
    
    
    Prepaid expenses and other assets
    
    
    (16,738
    )
    
    
    (18,500
    )Accounts payable
    
    
    2,244,020
    
    
    
    1,044,436Accrued interest
    
    
    2,537
    
    
    
    91,156Accrued wages and benefits
    
    
    4,143
    
    
    
    14,039Accrued payroll taxes
    
    
    (26,522
    )
    
    
    21,445Accrued expenses  related party
    
    
    (297,738
    )
    
    
    Net cash provided by (used in) operating activities
    
    
    1,996,482
    
    
    
    (3,395,424
    )CASH FLOWS FROM INVESTING ACTIVITIESPurchase of property, plant and equipment, including
construction in progress
    
    
    (921,563
    )
    
    
    (15,351,816
    )Sales tax refund received on plant construction costs
    
    
    443,535
    
    
    
    Proceeds from sale of asset
    
    
    
    
    
    
    33,600Net cash used in investing activities
    
    
    (478,028
    )
    
    
    (15,318,216
    )CASH FLOWS FROM FINANCING ACTIVITIESLoan origination fees
    
    
    
    
    
    
    (2,307
    )Proceeds from long-term debt
    
    
    4,809,472
    
    
    
    13,858,674Payments on long-term debt
    
    
    (4,215,000
    )
    
    
    (19,775
    )Distributions to members
    
    
    (2,121,314
    )
    
    
    Net cash provided by (used in) financing activities
    
    
    (1,526,842
    )
    
    
    13,836,592NET DECREASE IN CASH AND CASH EQUIVALENTS
    
    
    (8,388
    )
    
    
    (4,877,048
    )CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD
    
    
    28,322
    
    
    
    4,935,695CASH AND CASH EQUIVALENTS, END OF PERIOD
    
    $
    19,934
    
    
    $
    58,647
 
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WESTERN IOWA ENERGY, LLC
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
June 30, 2007
  USE OF ESTIMATES IN PREPARING FINANCIAL STATEMENTS
  BASIS OF ACCOUNTING
    REVENUE RECOGNITION
  CASH AND CASH EQUIVALENTS
  ACCOUNTS RECEIVABLE
   DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES
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WESTERN IOWA ENERGY, LLC
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
June 30, 2007
 DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES
    INVENTORIES
  PROPERTY, PLANT, AND EQUIPMENT
   YearsLand improvements
    
    
    20-40Office building
    
    
    5-40Office equipment
    
    
    5-20Plant and process equipment
    
    
    10-40
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WESTERN IOWA ENERGY, LLC
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
June 30, 2007
 PROPERTY, PLANT, AND EQUIPMENT
  LOAN ORIGINATION FEES
  OTHER INVESTMENTS
  OTHER INCOME
  INCOME TAXES
  EARNINGS PER UNIT
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WESTERN IOWA ENERGY, LLC
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
June 30, 2007
 COST OF SALES
  SHIPPING AND HANDLING COSTS
  ENVIRONMENTAL LIABILITIES
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WESTERN IOWA ENERGY, LLC
NOTES TO FINANCIAL STATEMENTS
June 30, 2007
 NOTE 1  INCENTIVE PAYMENTS AND RECEIVABLE
  NOTE 2  INVENTORY
 Inventory consists of the following at June 30, 2007:Raw material
    
    $
    1,852,561Work in progress
    
    
    2,296,130Finished goods
    
    
    901,562Total
    
    $
    5,050,253
 NOTE 3  LAND OPTION
  NOTE 4  DEBT AND FINANCING
 Revolving line of credit
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WESTERN IOWA ENERGY, LLC
NOTES TO FINANCIAL STATEMENTS
June 30, 2007
 NOTE 4  DEBT AND FINANCING
 Long-term debt
  Note payable to Farm Credit Services of America and
CoBank under term note agreement  see details
below.
    
    $
    8,650,000Note payable to Farm Credit Services of America and
CoBank under reducing revolving credit note  see
details below.
    
    
    7,060,000Note
payable to the Iowa Department of Economic Development  see details below.
    
    
    382,500Note payable
to Glidden Rural Electric Cooperative  see details below.
    
    
    740,000Total
    
    
    16,832,500Less current portion
    
    
    4,241,648Long-term portion
    
    $
    12,590,852
  2008
    
    $
    4,241,6482009
    
    
    1,918,2962010
    
    
    1,929,3482011
    
    
    1,007,8252012
    
    
    992,509Thereafter
    
    
    6,742,874Total
    
    $
    16,832,500
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WESTERN IOWA ENERGY, LLC
NOTES TO FINANCIAL STATEMENTS
June 30, 2007
 NOTE 4  DEBT AND FINANCING
   NOTE 5  MEMBERS EQUITY
   NOTE 6  CONCENTRATION OF CREDIT RISK
  NOTE 7  CASH FLOW DISCLOSURES
  Six Months Ended
    
    
    Six Months EndedJune 30, 2007
    
    
    June 30, 2006Cash paid for interest
    
    $
    747,012
    
    
    $
    186
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WESTERN IOWA ENERGY, LLC
NOTES TO FINANCIAL STATEMENTS
June 30, 2007
 NOTE 7  CASH FLOW DISCLOSURES
  Six Months Ended
    
    
    Six Months EndedJune 30, 2007
    
    
    June 30, 2006Construction in progress in accounts payable
    
    $
    
    
    
    $
    1,981,728
 NOTE 8  RELATED PARTY TRANSACTIONS
    NOTE 9  LEASE COMMITMENTS
  2008
    
    $
    35,6272009
    
    
    35,6272010
    
    
    35,6272011
    
    
    35,627Total
    
    $
    142,508
  NOTE 10  RETIREMENT AND SAVINGS PLAN
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WESTERN IOWA ENERGY, LLC
NOTES TO FINANCIAL STATEMENTS
June 30, 2007
 NOTE 11  FAIR VALUE OF FINANCIAL INSTRUMENTS
   14




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Item 2. Managements Discussion and Analysis or Plan of Operation.
 Cautionary Statements Regarding Forward Looking Statements
  
    
    Competition with other manufacturers in the biodiesel industry;
    
    Overcapacity within the biodiesel industry;
    
    Decrease in the demand for biodiesel;
    
    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;
    
    Changes in our business strategy, capital improvement or development plans;
    
    Changes in general economic conditions or the occurrence of certain events causing
an economic impact in the agriculture, oil or automobile industry;
    
    Changes in plant production capacity or technical difficulties in operating the
plant;
    
    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; and
    
    Other factors described elsewhere in this report.
  Overview
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Results of Operations for the Three Months Ended June 30, 2007 and 2006
  Three Months Ended
    
    Three Months EndedJune 30, 2007
    
    June 30, 2006(Unaudited)
    
    (Unaudited)Statement of Operations Data
    
    Amount
    
    
    %
    
    Amount
    
    
    %Revenues
    
    $
    24,800,210
    
    
    
    100
    %
    
    $
    633,585
    
    
    
    100
    %Cost of Sales
    
    $
    22,234,384
    
    
    
    89.65
    %
    
    $
    491,581
    
    
    
    77.58
    %Gross Profit
    
    $
    2,565,836
    
    
    
    10.34
    %
    
    $
    142,004
    
    
    
    22.41
    %Operating Expenses
    
    $
    575,554
    
    
    
    2.32
    %
    
    $
    175,467
    
    
    
    27.69
    %Other Income (Expense)
    
    $
    (360,735
    )
    
    
    1.45
    %
    
    $
    11,605
    
    
    
    1.83
    %Net Income (Loss)
    
    $
    1,629,537
    
    
    
    6.57
    %
    
    $
    (21,858
    )
    
    
    3.44
    %
 Revenues
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Cost of Sales
       17




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Operating Expense
   Other Income (Expense)
  Results of Operations for the Six Months Ended June 30, 2007 and 2006
  Six Months Ended
    
    Six Months EndedJune 30, 2007
    
    June 30, 2006(Unaudited)
    
    (Unaudited)Income Statement Data
    
    Amount
    
    
    %
    
    Amount
    
    
    %Revenues
    
    $
    39,055,190
    
    
    
    100
    %
    
    $
    633,585
    
    
    
    100
    %Cost of Sales
    
    $
    35,923,065
    
    
    
    91.98
    %
    
    $
    491,581
    
    
    
    77.58
    %Gross Profit
    
    $
    3,132,125
    
    
    
    8.01
    %
    
    $
    142,004
    
    
    
    22.41
    %Operating Expenses
    
    $
    1,013,549
    
    
    
    2.59
    %
    
    $
    330,508
    
    
    
    52.16
    %Other Income (Expense)
    
    $
    (631,598
    )
    
    
    1.61
    %
    
    $
    57,413
    
    
    
    9.06
    %Net Income (Loss)
    
    $
    1,486,978
    
    
    
    3.81
    %
    
    $
    (131,091
    )
    
    
    20.69
    %
  18




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Revenues .
  Cost of Sales
   Operating Expenses
  Other Income (Expense) .
  Changes in Financial Condition for the Six Months Ended June 30, 2007
  June 30,
    
    
    December 31,2007
    
    
    2006Current Assets
    
    $
    17,322,903
    
    
    $
    14,321,948Current Liabilities
    
    $
    8,633,819
    
    
    $
    6,166,566Long-Term Debt
    
    $
    12,590,852
    
    
    $
    12,851,239Members Equity
    
    $
    29,179,232
    
    
    $
    29,813,568,
 Current Assets
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Current Liabilities
 Long-Term Debt
 Members Equity
 Trends and Uncertainties Impacting the Biodiesel Industry and Our Future Revenues
 Growth and Increased Competition in the Biodiesel Industry
 If biodiesel production
capacity continues to expand at its current pace, and demand does not grow to meet the available
supply, excess production capacity will result.
   
    
    there were 148 active plants with an annual production capacity of 1.39 billion
gallons annually;
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
    
    another 96 plants are currently under construction and an additional 5 plants
are expanding their existing operations;
    
    the additional combined capacity of these plants under construction is
estimated at 1.89 billion gallons per year;
    
    biodiesel plants are operating or have been proposed in at least 46 states; and
    
    currently, there are 12 operating biodiesel plants in Iowa.
    Increased Prices and Decreased Production of Feedstock
  Plan of Operations for the Next 12 Months
   21




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Plant Operations
    Completion of Construction
   Operating Budget and Financing of Plant Operations
   22




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Commodity Price Risk Protection
     Permitting and Regulatory Activities
  Employees
  Critical Accounting Estimates
   23




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Liquidity and Capital Resources
  Sources of Funds
  Short-Term and Long-Term Debt Sources
   
    
    During the fiscal year ending 2007, the Company cannot expend in the aggregate, more
than $2,600,000, and each year thereafter, in the aggregate, more than $500,000, for
the acquisition of fixed or capital assets;
    
    The Company cannot declare or pay any dividends or make any distribution of assets
to the members/owners, or purchase, redeem retire or otherwise acquire for value any of
its membership units, or allocate or otherwise set apart any sum for any of the
foregoing, except that in any fiscal year of the Company, a distribution may be made to
the Companys members/owners of up to 40% of the net profit for each fiscal year after
receipt of the audited financial statements for the pertinent fiscal year;
    
    Unless otherwise agreed in writing, the Company will not create, incur, assume or
permit to exist any obligation as lessee under operating leases or leases which should
be capitalized in accordance with GAAP for the rental or hire of any real personal
property, except leases which do not in the aggregate require the Company to make
scheduled payments to the lessors in any fiscal year of the Company in excess of
$100,000;
    
    Unless otherwise agreed in writing, the Company will have at the end of each period
for which financial statements are required to be furnished an excess of current assets
over current liabilities of not less than $6,000,000, except that in determining assets,
any amount available under the Construction and Revolving Term Loan Supplement hereto may be
included; and
  24




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
    
    The Company will have at the end of each period for which financial statements are
required to be furnished an excess of total assets over total liabilities of not less
than $26,000,000.
  
    
    The Company promises to repay the loans as follows: (i) in 20 equal, consecutive,
quarterly installments of $450,000 with the first installment due on December 20, 2006
and the last such installment due on September 20, 2011; and (ii) followed by a final
installment in an amount equal to the remaining unpaid principal balance of loans on
December 20, 2011.
    
    For each fiscal year end, beginning with the fiscal year ending in 2006, and ending
with the fiscal year ending in 2012, the Company shall also, within 120 days after the
end of each fiscal year, make a special payment of an amount equal to 50% of the Free
Cash Flow of the Company; provided, however, that: (i) if such payment would result in
a covenant default under the Construction and Term Loan Supplement or Master Loan
Agreement, the amount of the payment shall be reduced to an amount which would not
result in a covenant default; (ii) if such payment would result in a breakage of a
fixed interest rate, the applicable broken funding surcharges would still apply; and
(iii) the aggregate of such payments shall not exceed $6,000,000.
    
    In the event that all outstanding principal balances under the Construction and Term
Loan Supplement are paid in full prior to the end of fiscal year 2012, Free Cash Flow
payments shall nevertheless continue, and the amount thereof (including any remaining
portion in the event that part of such payment is applied to the remaining balance
under the Construction and Term Loan Supplement) shall be applied to the Construction
and Revolving Term Loan Supplement dated June 6, 2005.
   Grants and Government Programs
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
    
    Authority to receive a property tax abatement from the City of Wall Lake at
85% of the tax on the property without the abatement for 10 years followed by
an abatement at 75% of the tax on the property with the abatement for 5 years.
    
    An investment tax credit equal to $2,990,400 (this Iowa tax credit may be
passed through to unit holders and carried forward for up to 7 years by them
until depleted);
    
    Funding for training new employees through a supplemental new jobs
withholding credit equal to one and one-half percent (1.5%) of the gross wages
of the new jobs created by the project; and
    
    A refund of one hundred percent (100%) of the sales, service and use taxes
paid to contractors and subcontractors during the construction phase of the
project (excluding local option sales taxes on intangible property, furniture
and furnishings). In April 2007, we received a sales tax refund of
$443,535.49.
   Off-Balance Sheet Arrangements
  
 Item 3. Controls and Procedures.
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PART II  OTHER INFORMATION
 
 Item 1. Legal Proceedings.
  Item 1A. Risk Factors
 The decreasing availability and increasing price of soybean oil may hinder our ability to
profitably produce biodiesel and may result in plant shut downs and decreased revenues.
  
 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.
  
 Item 3. Defaults Upon Senior Securities.
  
 Item 4. Submission of Matters to a Vote of Security Holders.
  
 Item 5. Other Information.
   27




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
    
    During the fiscal year ending 2007, the Company cannot expend in the aggregate, more
than $2,600,000, and each year thereafter, in the aggregate, more than $500,000, for
the acquisition of fixed or capital assets;
    
    The Company cannot declare or pay any dividends or make any distribution of assets
to the members/owners, or purchase, redeem retire or otherwise acquire for value any of
its membership units, or allocate or otherwise set apart any sum for any of the
foregoing, except that in any fiscal year of the Company, a distribution may be made to
the Companys members/owners of up to 40% of the net profit for each fiscal year after
receipt of the audited financial statements for the pertinent fiscal year;
    
    Unless otherwise agreed in writing, the Company will not create, incur, assume or
permit to exist any obligation as lessee under operating leases or leases which should
be capitalized in accordance with GAAP for the rental or hire of any real personal
property, except leases which do not in the aggregate require the Company to make
scheduled payments to the lessors in any fiscal year of the Company in excess of
$100,000;
    
    Unless otherwise agreed in writing, the Company will have at the end of each period
for which financial statements are required to be furnished an excess of current assets
over current liabilities of not less than $6,000,000, except that in determining
assets, any amount available under the Construction and Revolving Term Loan Supplement
hereto may be included; and
    
    The Company will have at the end of each period for which financial statements are
required to be furnished an excess of total assets over total liabilities of not less
than $26,000,000.
  
    
    The Company promises to repay the loans as follows: (i) in 20 equal, consecutive,
quarterly installments of $450,000 with the first installment due on December 20, 2006
and the last such installment due on September 20, 2011; and (ii) followed by a final
installment in an amount equal to the remaining unpaid principal balance of loans on
December 20, 2011.
    
    For each fiscal year end, beginning with the fiscal year ending in 2006, and ending
with the fiscal year ending in 2012, the Company shall also, within 120 days after the
end of each fiscal year, make a special payment of an amount equal to 50% of the Free
Cash Flow of the Company; provided, however, that: (i) if such payment would result in
a covenant default under the Construction and Term Loan Supplement or Master Loan
Agreement, the amount of the payment shall be reduced to an amount which would not
result in a covenant default; (ii) if such payment would result in a breakage of a
fixed interest rate, the applicable broken funding surcharges would still apply; and
(iii) the aggregate of such payments shall not exceed $6,000,000.
    
    In the event that all outstanding principal balances under the Construction and Term
Loan Supplement are paid in full prior to the end of fiscal year 2012, Free Cash Flow
payments shall nevertheless continue, and the amount thereof (including any remaining
portion in the event that part of such payment is applied to the remaining balance
under the Construction and Term Loan Supplement) shall be applied to the Construction
and Revolving Term Loan Supplement dated June 6, 2005.
   28




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Item 6. Exhibits.
 Exhibit No.
    
    Exhibit10.1
    
    Amendment to Master Loan Agreement between Farm
Credit Services of America, FLCA and Western Iowa
Energy, LLC, dated June 21, 2007.10.2
    
    Amendment to Construction and Term Loan
Supplement between Farm Credit Services of
America, FLCA and Western Iowa Energy, LLC, dated
June 21, 2007.10.3
    
    Statused Revolving Credit Supplement between Farm
Credit Services of America, FLCA and Western Iowa
Energy, LLC, dated June 21, 2007.31.1
    
    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.
  29




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##### Table of Contents



SIGNATURES
  WESTERN IOWA ENERGY, LLC/s/ William J. HoranAugust 13, 2007
    William J. HoranChairman, President and Director
(Principal Executive Officer)/s/ Denny MauserAugust 13, 2007
    Denny MauserTreasurer and Director
(Principal Financial and Accounting Officer)  30




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##### Table of Contents



EXHIBIT INDEX
 Exhibit No.
    
    Exhibit10.1
    
    Amendment to Master Loan Agreement between Farm
Credit Services of America, FLCA and Western Iowa
Energy, LLC, dated June 21, 2007.10.2
    
    Amendment to Construction and Term Loan
Supplement between Farm Credit Services of
America, FLCA and Western Iowa Energy, LLC, dated
June 21, 2007.10.3
    
    Statused Revolving Credit Supplement between Farm
Credit Services of America, FLCA and Western Iowa
Energy, LLC, dated June 21, 2007.31.1
    
    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.
  31