Land O'Lakes, Cenex Harvest States Cooperatives and Farmland Industries today announced plans to proceed with the establishment of an agronomy marketing joint venture company and a closely associated seed marketing structure to become effective early in the new year.

These ventures were originally proposed in anticipation of a planned unification between Cenex
Harvest States and Farmland which did not receive the necessary member approval. The agronomy and seed alliances will not be contingent on a Farmland and Cenex Harvest States unification.

"We're pleased that we are able to move ahead on our members' behalf,'' said John Johnson,
president and chief operating officer of Cenex Harvest States. "Our members have voiced strong
support for working relationships in agronomy and seed.''

"Farmland's membership believes in the value of working together as a cooperative system for the
benefit of the independent producer. Proceeding on these joint ventures in the agronomy and seed
businesses will allow us to begin doing so,'' said Bob Honse, Farmland chief operating officer.

"We are firmly convinced these ventures are critical to achieving the economies of scale and critical mass that we need, as a farmer-owned system, to deliver optimum value to customers and members in the 21st Century,'' said Duane Halverson, Land O'Lakes Ag Services chief operating officer.

The agronomy venture will be equally owned and governed by Land O'Lakes (50%) and by a
Cenex Harvest States / Farmland LLC (50%). Leadership of the Agronomy business, as originally
proposed, will include co-presidents Stan Riemann, Farmland executive vice president and
president of Farmland's Crop Production division and Al Giese, president of the Cenex/Land
O'Lakes Agronomy Company.

The partners in the joint venture would continue to hold separate ownership in fertilizer
manufacturing facilities. Issues involving fertilizer manufacturing will be addressed through supply
arrangements involving the CF Industries system and Farmland's production facilities. This
arrangement will have no significant impact on production levels and offers opportunities to enhance operating practices, company officials said.

The seed venture, will combine the seed businesses of Land O'Lakes and WILFARM LLC (a
Farmland/Wilbur Ellis joint venture). This venture will be closely tied to the agronomy venture
through a formal marketing relationship.

Officials of the three companies said the agronomy and seed ventures were identical in size, scale and scope to what had been proposed in anticipation of the planned Cenex Harvest States and Farmland unification.

Cooperative officials also said discussions were proceeding on a working relationship among the
three cooperative's feed businesses. No timetable has been established for completion of the feed
discussions.

Cenex Harvest States is a producer-to-consumer cooperative system owned by farmers, ranchers and their local co-ops from the Great Lakes to the Pacific Northwest and from the Canadian border to Texas. This fully integrated agricultural foods cooperative operates petroleum refineries/pipelines and provides a wide variety of products and services ranging from grain marketing to food processing. Through a broad range of working partnerships, Cenex Harvest States also markets and distributes energy products, agronomic inputs and feed to rural America, as well as grain and processed food products to customers around the world.

Land O'Lakes, Inc. is a national farmer-owned food and agricultural cooperative with sales in all 50 states and more than 50 countries. It is a leading marketer of a full line of dairy-based products across the United States; serves international customers with a variety of food products and animal feed ingredients; and provides family farmers and member cooperatives with an extensive line of feed, seed, plant food and crop protection products.

Farmland Industries, Inc., Kansas City, Missouri, is a farmer-owned cooperative with sales in all 50 states and nearly 90 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.

Company news release
N2340