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EXHIBIT
99.4
 AGRIUM INC.
 ITEM
18 RECONCILIATION WITH UNITED STATES
GENERALLY ACCEPTED ACCOUNTING PRINCIPLES
FOR THE YEARS ENDED DECEMBER 31, 2007, 2006
AND 2005




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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM ON RECONCILIATION TO UNITED STATES
GENERALLY ACCEPTED ACCOUNTING PRINCIPLES
 To the Board of Directors of Agrium Inc.




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AGRIUM INC.
  For the year endedReconciliation of net earnings under Canadian GAAP to U.S. GAAP
    
    December 31,2007
    
    
    2006
    
    
    2005Net earnings, Canadian GAAP
    
    
    441
    
    
    
    33
    
    
    
    283Adjustments, net of taxStock-based compensation (a)
    
    
    (3
    )
    
    
    
    
    
    
    Stripping costs (b)
    
    
    (4
    )
    
    
    
    
    
    
    Derivative instruments and hedging activities (c)
    
    
    
    
    
    
    6
    
    
    
    (9
    )Other
    
    
    (8
    )
    
    
    3
    
    
    
    (4
    )Net earnings, U.S. GAAP
    
    
    426
    
    
    
    42
    
    
    
    270Earnings per common share, U.S. GAAPBasic
    
    
    3.17
    
    
    
    0.32
    
    
    
    2.04Diluted
    
    
    3.14
    
    
    
    0.32
    
    
    
    2.03
 For the year endedReconciliation of comprehensive income under Canadian GAAP to U.S. GAAP
    
    December 31,2007
    
    
    2006
    
    
    2005Net earnings, U.S. GAAP
    
    426
    
    
    42
    
    
    270AdjustmentsChange in unrealized gains (losses) on derivative instruments, net of tax (c)
    
    
    10
    
    
    
    (24
    )
    
    
    27Change in realized gains on derivative instruments, net of tax (c)
    
    
    9
    
    
    
    
    
    
    
    1Change in foreign currency translation adjustment (d)
    
    
    49
    
    
    
    (1
    )
    
    
    9Change in funded status of the defined benefit plans, net of tax (e)
    
    
    17
    
    
    
    
    
    
    
    Change in minimum pension liability adjustment, net of tax (e)
    
    
    
    
    
    
    
    
    
    
    (3
    )Comprehensive income, U.S. GAAP
    
    
    511
    
    
    
    17
    
    
    
    304
 Cumulative effect of adjustments from Canadian GAAP to U. S. GAAP on shareholders equity
    
    As at December 31,2007
    
    
    2006Shareholders equity, Canadian GAAP
    
    
    3,092
    
    
    
    1,233Adjustments, net of taxStock-based compensation (a)
    
    
    (3
    )
    
    
    Stripping costs (b)
    
    
    (4
    )
    
    
    Funded status of defined benefit plans (e)
    
    
    (33
    )
    
    
    (50
    )Cumulative translation adjustment  employee future benefits
    
    
    (6
    )
    
    
    Other
    
    
    (17
    )
    
    
    (9
    )Net unrealized gains on derivative instruments (c)
    
    
    
    
    
    
    6Shareholders equity, U.S. GAAP
    
    
    3,029
    
    
    
    1,180




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AGRIUM INC.
  a)
    
    U.S. GAAP requires measurement at fair value of stock-based compensation plans classified as
liabilities. Such liabilities under Canadian GAAP are measured at intrinsic value. The
Corporation estimates the fair value of liabilities for employee stock-based compensation plan
awards using a trinomial option pricing model for awards with a service condition, and a Monte
Carlo simulation model for awards with service and market conditions.b)
    
    U.S. GAAP requires stripping costs to be recognized in cost of sales in the same period as
related revenue. Under Canadian GAAP, the Corporation capitalizes and amortizes stripping
costs.c)
    
    The Corporation accounts for its derivative instruments as described in note 2 to the 2007
annual consolidated financial statements, which explains the recognition and measurement of
financial instruments and hedging relationships. As described in the notes, on January 1,
2007, differences between Canadian and U.S. GAAP were eliminated on adoption of new Canadian
standards.d)
    
    The Corporation adopted new Canadian standards dealing with financial instruments, hedging
activities and comprehensive income on January 1, 2007. Prior to adoption of the new
standards, under Canadian GAAP, gains and losses on translation of self-sustaining foreign
operations were included in a separate component of shareholders equity referred to as
cumulative translation adjustment. Under U.S. GAAP, the cumulative translation adjustment was
included in AOCI. Adoption of the new standards eliminated this difference.e)
    
    Effective December 31, 2006, the Corporation adopted recognition provisions of Financial
Accounting Standards Board (FASB) Statement No. 158. FAS 158 requires that the funded status
of pension and other post-retirement defined benefit plans be recognized on the consolidated
balance sheets, with changes in that funded status recorded as a component of other
comprehensive income (OCI) in the period they occur. Canadian GAAP does not require similar
treatment.f)
    
    Joint ventures  Under U.S. GAAP, interests in a joint venture where the venturer does not
own more than 50% of the common shares and has significant influence over the activities of
the joint venture are to be accounted for using the equity method. Under Canadian GAAP, such
joint ventures would be proportionately consolidated. As permitted by specific exemptions
provided by the SEC, adjustments to reflect the application of equity accounting have not been
made. Application of the equity method would not result in differences to shareholders equity
or net earnings.g)
    
    Reclassifications of certain items recorded under Canadian GAAP would be required under U.S.
GAAP. The presentation differences, outlined below, do not affect U.S. GAAP net earnings.
 i.
    
    Other expenses  During the year, the Corporation included within other expenses,
stock-based compensation expense of $118-million (2006  $30-million) and a pension
curtailment gain of $10-million (2006  nil). The table below reflects the allocation of
those expenses under U.S. GAAP.
 For the year endedDecember 31,2007
    
    
    2006Stock-based compensation expenseCost of product
    
    
    8
    
    
    
    1Selling
    
    
    4
    
    
    
    1General and administrative
    
    
    106
    
    
    
    28Total stock-based compensation expense
    
    
    118
    
    
    
    30Curtailment gainCost of product
    
    
    9
    
    
    
    -Selling
    
    
    1
    
    
    
    -Total curtailment gain
    
    
    10
    
    
    
    -
 ii.
    
    Deferred financing charges  The Corporation recorded
$20-million (2006  nil) in
deferred charges relating to financing costs as a reduction to long-term debt under
Canadian GAAP. Under U.S. GAAP, such charges are presented as long-term assets.




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AGRIUM INC.
 1.     ACCOUNTING PRONOUNCEMENTS
 Pronouncements adopted in the last three years
 Accounting for Uncertainty in Income Taxes
   Balance at January 1, 2007
    
    
    69Additions based on tax positions related to the current year
    
    
    5Additions for tax positions of prior years
    
    
    13Reductions for tax positions of prior years
    
    
    -Settlements
    
    
    -Lapse of statute of limitations
    
    
    (10
    )Balance at December 31, 2007
    
    
    77
  Inventory Costs  Inventory Costs
 Accounting for Certain Hybrid Financial Instruments  Accounting for Certain Hybrid Financial Instruments, an Amendment of FASB Statements No.
133 and 140
 Stripping Costs Incurred in the Production Phase of a Mining Operation  Accounting for Stripping Costs Incurred During
Production in the Mining Industry




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AGRIUM INC.
 Employers Accounting for Defined Benefit Pension and Other Post-retirement Plans  Employers Accounting for Defined Benefit Pension and Other Post-retirement Plans
 Stock-Based Compensation  Share-Based Payments
 Quantifying Misstatements in Financial Statements  Considering the Effects of Prior Year Misstatements when
Quantifying Misstatements in Current Year Financial Statements
 Pronouncements Issued and Not Yet Adopted
 Fair Value Measurements  Fair Value Measurements
 Fair Value Option for Financial Assets and Financial Liabilities  The Fair Value Option for Financial Assets and Financial Liabilities
 Noncontrolling Interests in Consolidated Financial Statements  Noncontrolling Interests in Consolidated Financial Statements




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AGRIUM INC.
 2.     PENSION AND OTHER POST-RETIREMENT BENEFIT PLANS
  2007Net actuarial gains
    
    
    12Reduction of actuarial losses on curtailment
    
    
    3Amortization of unrecognized net actuarial losses
    
    
    3Amortization of unrecognized net past service cost
    
    
    (1
    )Total of amounts recognized in OCI
    
    
    17
  2007
    
    
    2006Net actuarial loss
    
    
    (34
    )
    
    
    (52
    )Net prior service credit
    
    
    1
    
    
    
    2Total unrecognized amounts reported in AOCI
    
    
    (33
    )
    
    
    (50
    )
  3.     ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)
 Foreign currency
    
    
    
    
    
    Pension and othertranslation
    
    Fair value of
    
    post-retirementAccumulated other comprehensive
income  U.S. GAAP
    
    adjustment
    
    derivatives
    
    benefit plans
    
    TotalCTA, December 31, 2005 (Canadian GAAP)
    
    
    10
    
    
    
    -
    
    
    
    -
    
    
    
    10Unrealized gains on derivative instruments
    
    
    -
    
    
    
    29
    
    
    
    -
    
    
    
    29Realized gains on derivative instruments
included in inventory
    
    
    -
    
    
    
    1
    
    
    
    -
    
    
    
    1Employee future benefits
    
    
    -
    
    
    
    -
    
    
    
    (13
    )
    
    
    (13
    )AOCI, December 31, 2005, U.S. GAAP
    
    
    10
    
    
    
    30
    
    
    
    (13
    )
    
    
    27CTA, December 31, 2006 (Canadian GAAP)
    
    
    9
    
    
    
    -
    
    
    
    -
    
    
    
    9Adjustment to apply FAS 158
    
    
    -
    
    
    
    -
    
    
    
    (50
    )
    
    
    (50
    )Unrealized gains on derivative instruments
    
    
    -
    
    
    
    5
    
    
    
    -
    
    
    
    5Realized gains on derivative instruments
included in inventory
    
    
    -
    
    
    
    1
    
    
    
    -
    
    
    
    1AOCI, December 31, 2006, U.S. GAAP
    
    
    9
    
    
    
    6
    
    
    
    (50
    )
    
    
    (35
    )AOCI, December 31, 2007, Canadian GAAP
    
    
    64
    
    
    
    24
    
    
    
    -
    
    
    
    88Change in funded status, defined benefit plan
    
    
    (6
    )
    
    
    -
    
    
    
    (33
    )
    
    
    (39
    )AOCI, December 31, 2007, U.S. GAAP
    
    
    58
    
    
    
    24
    
    
    
    (33
    )
    
    
    49