991127 Farmland Reports Net Earnings of $13.9 MillionNovember 6, 1999Kansas City, MO - Farmland Industries reported fiscal 1999 earnings of $13.9 million on sales of $10.7 billion. The Farmland Industries Board of Directors approved fiscal 1999 patronage refunds of $30.3 million to its member-owners, in the form of cash and additional equity. In its 70-year history, including 1999, Farmland has returned more than $986 million in cash to its owners. Farmland President and CEO H.D. “Harry” Cleberg said, “While fiscal 1999 was a tough one for Farmland, it was also tough on our member cooperatives and producers. I am pleased with our Board's decision on patronage distribution and their commitment to our long-term 'farm-to-table' strategy.” Despite the challenges of the current agribusiness environment, Farmland's unit sales grew in fiscal 1999 in major business lines, including Grain, Foods, Animal Feed and Crop Production. Sales increased from $8.8 billion in fiscal 1998 to $10.7 billion, primarily due to a change in reporting of international grain trading sales, offset by lower commodity prices experienced all year. Cleberg said, “This was a difficult year for our Crop Production group, but our Feed, Foods and Grain businesses performed well. Farmland's diversification strategy and investment in those businesses has proven to be a prudent decision during these volatile times in agriculture.” Net income was higher than the previous year in the Foods, Feed and Grain businesses. The Petroleum business also experienced increased earnings in fiscal 1999, primarily due to a recovery of fiscal 1998's inventory price adjustment. Crop Production net earnings declined 55% compared to fiscal 1998, primarily due to lower margins caused by additional global fertilizer production capacity combined with reduced domestic demand. Farmland Industries, Inc., Kansas City, Mo., ( www.farmland.com ) 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. Farmland Industries' members will vote on a proposed consolidation with Cenex Harvest States Cooperatives on November 23, 1999.
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