Land O'Lakes, Cenex, Farmland in Joint Venture

December 27, 1999

Land O'Lakes, Cenex Harvest States Cooperatives and Farmland Industries plan to establish an agronomy marketing joint venture company and a closely associated seed marketing structure. The deal is to become effective early in 2000.

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

It 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.

Partners will 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. Company officials said the arrangement will have not significant impact on production levels and offers opportunities to enhance operating practices.