Farmland and ADM Announce Grain Agreement

Apr 27, 2001, 01:00 ET from Archer Daniels Midland Co.

    KANSAS CITY, Mo., April 27 /PRNewswire/ -- Farmland Industries and Archer
 Daniels Midland Co. (NYSE:   ADM) announce they have reached an agreement in
 principle to enter into a grain marketing relationship.  Under the agreement a
 new company, ADM/Farmland Inc., will lease and operate Farmland's grain assets
 throughout the United States.  Farmland and ADM will share profits equally.
     Farmland President and CEO Bob Honse said, "The grain business is
 inherently a capital intensive, low-margin business that under current
 economic conditions Farmland cannot continue to operate independently.  We
 have joined with a strong partner in ADM, a company that understands and
 appreciates the value of the local and regional cooperative system."
     According to ADM Chairman and Chief Executive G. Allen Andreas, the
 agreement provides ADM with the opportunity to add important assets to its
 network of grain elevators.
     "The ADM/Farmland agreement allows us to expand our system into key areas
 where we have not had a significant presence," said Andreas.  "In particular,
 we will increase our participation in wheat marketing in the Great Plains
 region."
     "This agreement enables Farmland to make great strides toward reducing our
 debt," said Honse.  "At the same time, ADM/Farmland Inc. brings added
 efficiencies, which we anticipate will result in enhanced patronage-based
 earnings for the grain business."
     Farmland Industries, Inc., Kansas City, Mo., ( www.farmland.com ) is a
 farmer-owned cooperative with sales in all 50 states and more than 60
 countries.  Focused on meeting the needs of its 600,000 farmer-owners in the
 United States, Canada and Mexico, Farmland is a highly diversified company
 with major business lines in crop production and crop protection products,
 livestock feeds, petroleum, grain processing and marketing, and the processing
 and marketing of pork, beef and catfish products.
     ADM is a world leader in agricultural processing.  The Company is the
 world's largest processor of soybeans, corn, wheat and cocoa.  ADM is also a
 leader in soy meal and oil, ethanol, high fructose corn syrup (HFCS), and
 flour.  In addition, ADM is building a position in such value-added products
 as food additives, and nutraceuticals (such as Vitamin E and sterols).
 Headquartered in Decatur, Illinois, ADM has over 23,000 employees, 368
 processing plants, and net sales for the fiscal year ending June 30, 2000, of
 $18.6 billion.  Additional information can be found on ADM's web site at
 www.admworld.com .
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X77511663
 
 

SOURCE Archer Daniels Midland Co.
    KANSAS CITY, Mo., April 27 /PRNewswire/ -- Farmland Industries and Archer
 Daniels Midland Co. (NYSE:   ADM) announce they have reached an agreement in
 principle to enter into a grain marketing relationship.  Under the agreement a
 new company, ADM/Farmland Inc., will lease and operate Farmland's grain assets
 throughout the United States.  Farmland and ADM will share profits equally.
     Farmland President and CEO Bob Honse said, "The grain business is
 inherently a capital intensive, low-margin business that under current
 economic conditions Farmland cannot continue to operate independently.  We
 have joined with a strong partner in ADM, a company that understands and
 appreciates the value of the local and regional cooperative system."
     According to ADM Chairman and Chief Executive G. Allen Andreas, the
 agreement provides ADM with the opportunity to add important assets to its
 network of grain elevators.
     "The ADM/Farmland agreement allows us to expand our system into key areas
 where we have not had a significant presence," said Andreas.  "In particular,
 we will increase our participation in wheat marketing in the Great Plains
 region."
     "This agreement enables Farmland to make great strides toward reducing our
 debt," said Honse.  "At the same time, ADM/Farmland Inc. brings added
 efficiencies, which we anticipate will result in enhanced patronage-based
 earnings for the grain business."
     Farmland Industries, Inc., Kansas City, Mo., ( www.farmland.com ) is a
 farmer-owned cooperative with sales in all 50 states and more than 60
 countries.  Focused on meeting the needs of its 600,000 farmer-owners in the
 United States, Canada and Mexico, Farmland is a highly diversified company
 with major business lines in crop production and crop protection products,
 livestock feeds, petroleum, grain processing and marketing, and the processing
 and marketing of pork, beef and catfish products.
     ADM is a world leader in agricultural processing.  The Company is the
 world's largest processor of soybeans, corn, wheat and cocoa.  ADM is also a
 leader in soy meal and oil, ethanol, high fructose corn syrup (HFCS), and
 flour.  In addition, ADM is building a position in such value-added products
 as food additives, and nutraceuticals (such as Vitamin E and sterols).
 Headquartered in Decatur, Illinois, ADM has over 23,000 employees, 368
 processing plants, and net sales for the fiscal year ending June 30, 2000, of
 $18.6 billion.  Additional information can be found on ADM's web site at
 www.admworld.com .
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X77511663
 
 SOURCE  Archer Daniels Midland Co.