EXHIBIT 12



<PAGE>



 COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES AND PREFERRED DIVIDENDS
 COMBINED

<TABLE>
<CAPTION>
                                                             AGWAY INC. AND CONSOLIDATED SUBSIDIARIES
                                                                    FOR THE YEARS ENDED JUNE
                                                                     (THOUSANDS OF DOLLARS)
                                             ----------------------------------------------------------------
                                                2002         2001          2000         1999         1998
                                             ----------   ----------   -----------   ----------   -----------
<S>                                         <C>           <C>          <C>           <C>          <C>
Earnings before income
taxes and member refunds.................   $  (16,895)   $ (19,199)   $    9,226    $  10,986    $   12,290

Fixed charges   - Interest...............       24,464       24,908        20,013       17,097        17,231
                - Rentals................        4,151        4,137         4,414        4,012         2,015
                                            -----------   ----------   -----------   ----------   -----------
Total fixed charges......................       28,615       29,045        24,427       21,109        19,246
                                            -----------   ----------   -----------   ----------   -----------
Adjusted net earnings....................   $   11,720    $   9,846    $   33,653    $  32,095    $   31,536
                                            ===========   ==========   ===========   ==========   ===========

Ratio of adjusted net earnings
to total fixed charges...................       (a)           (a)             1.4          1.5           1.6
                                            -----------   ----------   ===========   ==========   ===========

Deficiency of adjusted net
earnings to total fixed charges..........   $  (16,895)   $ (19,199)         N/D         N/D          N/D
                                            ===========   ==========   ===========   ==========   ===========

Fixed charges and preferred dividends
  combined: Preferred dividend factor:
   Preferred dividend requirements.......   $    2,557    $   2,847    $    3,060    $   3,287    $    3,522
   Ratio of pre-tax earnings
   to after-tax earnings*................       103.9%        49.5%         54.7%        58.0%         47.8%
   Preferred dividend factor
   on pre-tax basis......................        2,461        5,752         5,590        5,664         7,363

Total fixed charges (above)..............       28,615       29,045        24,427       21,109        19,246
                                            -----------   ----------   -----------   ----------   -----------

Fixed charges and preferred
dividends combined.......................   $   31,076    $  34,797    $   30,017    $  26,773    $   26,609
                                            ===========   ==========   ===========   ==========   ===========

Ratio of adjusted net earnings
to fixed charges and preferred
dividends combined**.....................       (b)          (b)              1.1          1.2           1.2
                                            ===========   ==========   ===========   ==========   ===========

Deficiency of adjusted net earnings
to fixed charges and preferred
dividends combined.......................   $  (19,356)   $ (24,951)        N/D         N/D           N/D
                                            ===========   ==========   ===========   ==========   ===========
</TABLE>

*        Represents after-tax earnings (loss) from continuing operations divided
         by pre-tax  earnings (loss) from continuing  operations,  which adjusts
         dividends on preferred stock to a pre-tax basis.

**       Represents adjusted net earnings divided by fixed charges and preferred
         dividends combined.

N/D      No deficiency.

(a)      Adjusted net earnings are inadequate to cover total fixed charges.

(b)      Adjusted net earnings are inadequate to cover total fixed  charges and
         preferred dividends combined.





<PAGE>


 COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES AND PREFERRED DIVIDENDS
 COMBINED

<TABLE>
<CAPTION>
                                                                       AGWAY INC. (PARENT)
                                                                     FOR THE YEARS ENDED JUNE
                                                                      (THOUSANDS OF DOLLARS)
                                             ----------------------------------------------------------------
                                                2002         2001          2000         1999         1998
                                             ----------   ----------   -----------   ----------   -----------
<S>                                         <C>           <C>          <C>           <C>          <C>
Earnings before income taxes
and member refunds.......................   $  (28,621)   $ (31,214)   $   (6,667)   $     (40)   $    7,541

Fixed charges   - Interest...............       25,155       24,242        18,832       15,194        15,788
                - Rentals................        1,387        1,563         1,958        1,971         1,829
                                            -----------   ----------   -----------   ----------   -----------
Total fixed charges......................       26,542       25,805        20,790       17,165        17,617
                                            -----------   ----------   -----------   ----------   -----------
Adjusted net earnings....................   $   (2,079)   $  (5,409)   $   14,123    $  17,125    $   25,158
                                            ===========   ==========   ===========   ==========   ===========

Ratio of adjusted net earnings
to total fixed charges...................       (a)          (a)           (a)          (a)              1.4
                                            -----------   ----------   ===========   ===========  ===========

Deficiency of adjusted net
earnings to total fixed charges..........   $  (28,621)   $ (31,214)       (6,667)         (40)       N/D
                                            ===========   ==========   ===========   ==========   ===========

Fixed charges and preferred dividends
 combined: Preferred dividend factor:
   Preferred dividend requirements.......   $    2,557    $   2,847    $    3,050    $   3,274    $    3,522
   Ratio of pre-tax earnings
   to after-tax earnings*................        86.9%        47.1%          9.0%    (4,745.0%)         59.6%
   Preferred dividend factor
   on pre-tax basis......................        2,942        6,047        33,889          (69)        5,912

Total fixed charges (above)..............       26,542       25,805        20,790       17,165        17,617
                                            -----------   ----------   -----------   ----------   -----------

Fixed charges and preferred
dividends combined.......................   $   29,484    $  31,852    $   54,679    $  17,096    $   23,529
                                            ===========   ==========   ===========   ==========   ===========

Ratio of adjusted net earnings
to fixed charges and preferred
dividends combined**.....................       (b)          (b)          (b)              1.0           1.1
                                            -----------   ----------   -----------   ==========   ===========

Deficiency of adjusted net earnings
to fixed charges and preferred
dividends combined.......................   $  (31,563)   $ (37,261)   $ (40,556)        N/D          N/D
                                            ===========   ==========   ==========    ==========   ===========

</TABLE>
*        Represents after-tax earnings (loss) from continuing operations divided
         by pre-tax  earnings (loss) from continuing  operations,  which adjusts
         dividends on preferred stock to a pre-tax basis.

**       Represents adjusted net earnings divided by fixed charges and preferred
         dividends combined.

N/D      No deficiency.

(a)      Adjusted net earnings are inadequate to cover total fixed charges.

(b)      Adjusted net earnings  are  inadequate to cover total fixed charges and
         preferred dividends combined.