Mr. Chris PolicinskiPresident & CEO

Land O’Lakes, Inc.

Theme of the Meeting

• Proud Past

• Strong Today

• Vibrant Tomorrow

Land O’Lakes • Proud Past

– Founded in 1921; cooperative owned by farmer-members; deep roots in the country

• Strong Today– Size … $10 billion agriculture and food company– Scope … farm to table– Focus … branded business– Reach … all fifty states, expanding global business, 30 years involvement in international development – Social Responsibility … As a food company, alleviating hunger is the centerpiece of our philanthropic efforts

• Vibrant Tomorrow– Focused on growth and innovation – Information, insights, expertise key to competitive advantage

Agriculture / Agribusiness• Proud Past

– Amazing productivity story

• Strong Today– Producing more, with fewer resources and

less impact on the environment– Delivering a safe, accessible affordable food

supply

• Vibrant Tomorrow– Capacity to capitalize on opportunity as population

grows and need for food increases – Challenges to be met

A Call to Action

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Proud Past - U.S. Ag Productivity Story

SOURCE: Productivity Growth in US Agriculture, USDA (2007); Economic Research Service, American Farm Bureau Federation

1 Total output is an aggregation of crop and livestock commodities and related services2 Total input is an aggregation of land, labor, capital and intermediate inputs like fertilizer, feed and seed3 Disposable income spent on all food-related purchases, in and out of the home. This number falls to <6%

when only home consumption is considered.

Changes in U.S. agricultural output / inputs, since 1948Index 1948 = 100

~250%Farming

practicesTechnology

▪ In 1930, % of income spent on food was 25%

▪ Today, % of income spent on food is 10%3

▪ In 1930, one farmer fed 10 people

▪ Today, one farmer feeds 155 people

▪ In 1930, agriculture employed 22% of the US workforce

▪ Today, it employs 2%

Total output 1 Total inputs2

• Corn yields– 1930 – 20 bushels/acre– 1960 – 55 bushels/acre– 2009 – 165 bushels/acre

• Wheat yields– 1930 – 14 bushels/acre– 1960 – 26 bushels/acre– 2009 – 44 bushels/acre

• Soybean yields– 1930 – 13 bushels/acre– 1960 – 24 bushels/acre– 2009 – 44 bushels/acre

U.S. Ag Productivity

U.S. Ag Productivity

Domestic

U.S. Pork Production Per Sow1960-2001

0

5,000

10,000

15,000

20,000

25,000

1960 2009

U.S. Milk Production Per Cow

Lbs. per cow

U.S. Ag Productivity Drivers

• Adoption of modern business and production management practices on the farm

• Development and use of safe, proven agricultural technologies

Strong Today – Productivity AND Sustainability

• Dairy - 2007 vs. 1944 … per gallon of milk used

– Used only 10% of the land; 35% of the water – Generated only 24% of the manure; 43% of the methane

• Crops - 2007 vs. 1996 …– Environmental impact of crop protection

products reduced by 17% on biotech crop acres

– In 2007, reduced on-farm fuel use provided carbon dioxide equivalent to taking 6 million cars off the roads

Strong Today – Food Accessibility and Affordability

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

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2,600

1930 1940 1950 1960 1970 1980 1990 2000 2010

Food expenditures as a share of disposable personal incomeBillion dollars

$1.6 trillion

If we were spending the sameshare of disposable personal income on food as in 1930, the U.S. families’ food bill would be $1.6 trillion higher

Food spendingas share of disposable income at1930’s level

Actual U.S. food expenditures

SOURCE: USDA Economic Research Service

Vibrant Tomorrow

• The global population is expected

to rise from 6.8 billion today to 9

billion by 2050 – and a 70%

increase in food production will be

required to meet growing need

Vibrant Tomorrow Well positioned, but plenty of work ahead.

• Challenges– Growth– Changing markets / consumer demands / perceptions– Finite resources … land and water

• “Business Pillar” response– Address business fundamentals– Tell agriculture’s story

Business Fundamentals

• Get the basics right– Technology; quality

• Set aggressive performance goals– Global perspective

• Balance short-term demands against long-term point of view

– Generate margin for today’s earnings and a strong balance sheet

Telling Agriculture’s Story – Irony of Efficiency

Production Ag

Less than 2% of the U.S. population is directly involved in production agriculture.

Vibrant Tomorrow – Telling Agriculture’s Story

A Call to ActionImprove the image and reputation of agriculture to counter:

• Decisions about agriculture being driven by misinformation, opinion, emotion or even nostalgia

• Misinformation and misconceptions about agriculture and the foods industry

• Those who believe there is only one right way to produce the food needed to feed the world

“The world has the technology, either available or well-advanced in the research pipeline, to feed a population of 10 billion people.

The more pertinent question is whether farmers and ranchers will be permitted to use this new technology.” Dr. Norman Borlaug

Not an “either / or” proposition

We don’t promote a single point-of-view

It’s about choice and co-existence

• Protecting producers’ right to choose to use – or not use – proven, safe, beneficial

technologies

• Protecting consumers’ right to choose from a variety of food products … those that reflect what they value

Food Economic PoliticalSecurity Security Stability

We Have To Get This Right!

Most Publicized Food Riots … 2007-2010

Agriculture’s Amazing Productivity Story

― Past

― Present

― Future