In spite of a challenging and volatile business environment, AGRILAND FS, Inc. is pleased to report to shareholders that we achieved a very successful fiscal year.  While we were not immune from inventory devaluation in fertilizer and other commodities that made up our customer supply plans, we achieved our second best year in the 78 year history of our cooperative.  The financial results of your cooperative are included below.  The company will issue patronage checks to qualifying members in the month of March 2010.  Patronage will be paid 50% cash and 50% stock.

Over the past 16 months, we have invested almost $15 million in rolling stock, application equipment, facilities, and technology to serve our customers' changing needs.  Plus, we redeemed $735,000 of previously issued stock over this same period.  Financial success and the ability to service current/future customer needs are strongly correlated.  Our balance sheet as of August 31, 2009 reflects the strength of AGRILAND FS.  The management team and board of directors are committed to financing our future growth by building the retained earning of your cooperative. 

Individual customers tell us in positive testimonials everyday on "why they do business with AGRILAND FS"...Commitment, Service, Technology, Efficiency, Solutions, Risk Management, Professional Employees, Quality Products, and Supply When It's Needed.  We like to call that the "AGRILAND Way" of doing business!  We appreciate the trust and investment you have made in your cooperative and we understand the responsibility we have to you.

	AGRILAND FS, Inc. Fiscal Year-End  August 31, 2009
INCOME STATEMENT
Sales $	$237,288,802
Operating Revenue	$37,083,916
Operating Expense	$34,147,042
Operating Income	$2,936,874
Other Income - Net	$9,991,909
Income Before Tax	$12,928,783
Income Tax	$5,127,381
Net Income	$7,801,402
BALANCE SHEET
Current Assets	$59,975,765
Long Term Assets	39,056,708
Total Assets	$99,032,473
Current Liabilities	$28,539,928
Long Term Liabilities	27,214,712
Total Liabilities	$55,754,640
Members’ Equity:
Capital Stock Issued	$10,265,089
Accumulated Other Comprehensive Loss	($4,729,314)
Retained Earnings	37,742,058
Total Member Equity	$43,277,833
Total Liabilities & Member Equity	$99,032,473

We thank you for your continued support of AGRILAND FS...your strong, locally owned and locally controlled cooperative!  If you have any questions or comments, feel free to give me a call directly at (515) 462-5348.

John Knobloch

General Manager | AGRILAND FS, Inc.