RELATED PARTY TRANSACTIONS
The Company purchased corn and materials from members of its Board of Directors or Risk Management Committee that own or manage elevators. Purchases during the three and six months ended April 30, 2012 totaled approximately $29,447,000 and $62,287,000, respectively. Purchases during the same periods of 2011 totaled approximately $23,343,000 and $46,691,000, respectively.
The Company entered into an agreement with Homeland Energy Solutions, LLC in December 2008. Pursuant to the agreement, the companies have agreed to share the compensation costs associated with each position covered by the agreement partially in an effort to reduce the costs of administrative overhead. The Company recorded a reduction of approximately $63,000 and $114,000 to operating expenses during the three and six months ended April 30, 2012 and $78,000 and 161,000 for the same periods of 2011, respectively.