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Exhibit 10.1

ARCHER-DANIELS-MIDLAND COMPANY

Management Compensation Arrangements

Base Salary and Cash Bonuses

During the fiscal year ended June 30, 2004, the executive officers of
Archer-Daniels-Midland Company (the “Company”) who were named in the Summary
Compensation Table included in the Company’s most recent proxy statement
received the base salaries included in that table. These officers and the
Company’s other officers are eligible for annual increases in their base
salaries which have typically not exceeded 5% in any given year. No officer of
the Company receives a cash bonus under the Company’s current compensation
policies.

Long-Term Incentive Compensation Program

Under the Company’s long-term incentive compensation program, officers and
certain other employees of the Company have the opportunity to receive annual
incentive compensation awards in the form of stock options and restricted stock
under the Company’s 2002 Incentive Compensation Plan. The stock option awards
are based upon each participant reaching annual individual performance
objectives as determined by the person’s supervisor(s) or, in the case of the
Chief Executive, by the Board of Directors. The restricted stock awards are
based on the Company achieving target levels of total business return, based on
change in equity value calculated as a multiple of EBITDA (earnings before
interest, taxes, depreciation and amortization) less debt, plus dividends,
measured on a three-year rolling average. The amount of these awards are based
on a combination of the participant’s position within the Company and base
salary.

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