Item 8.01 Other Events
Highwater Ethanol, LLC (the "Company") has decided to reduce its ethanol
production rate at the plant by approximately 20% for the foreseeable future.
The Company was operating at an average ethanol production rate of approximately
67 million gallons annually prior to making the decision to curtail production.
The Company believes that this reduction is warranted due to current negative
margins in the ethanol industry resulting in part from a slowdown in global and
regional economic activity and decreased ethanol demand due to the COVID-19
pandemic. Limiting ethanol production is expected to result in a corresponding
decrease in distillers grains and corn oil production. The Company will continue
to monitor COVID-19 developments and the effect on fuel demand and terminal
capacity in order to determine whether further adjustments to production will be
© Edgar Online, source Glimpses