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)
                                             ----------------------------------------------------------------
                                                2001         2000          1999         1998         1997
                                             ----------   ----------   -----------   ----------   -----------
<S>                                         <C>           <C>          <C>           <C>          <C>
Earnings(Loss) before income
taxes and member refunds.................   $  (13,676)   $  13,016    $   23,200    $  30,184    $   13,226

Fixed charges   - Interest...............       82,759       71,580        62,369       61,395        58,016
                - Rentals................        5,103        5,272         4,768        4,131         3,434
                                            -----------   ----------   -----------   ----------   -----------
Total fixed charges......................       87,862       76,852        67,137       65,526        61,450
                                            -----------   ----------   -----------   ----------   -----------
Adjusted net earnings....................   $   74,186    $  89,868    $   90,337    $  95,710    $   74,676
                                            ===========   ==========   ===========   ==========   ===========

Ratio of adjusted net earnings
to total fixed charges...................       (a)             1.2           1.3          1.5           1.2
                                            -----------   ==========   ===========   ==========   ===========

Deficiency of adjusted net
earnings to total fixed charges..........   $  (13,677)        N/D          N/D         N/D           N/D
                                            ===========   ==========   ===========   ==========   ===========

Fixed charges and preferred dividends
   combined: Preferred dividend factor:
   Preferred dividend requirements.......   $    2,847    $   3,060    $    3,287    $   3,522    $    4,115
   Ratio of pre-tax earnings
   to after-tax earnings*................        57.5%        47.3%         55.8%        53.0%         64.3%
   Preferred dividend factor
   on pre-tax basis......................        4,951        6,469         5,891        6,645         6,400

Total fixed charges (above)..............       87,862       76,852        67,137       65,526        61,450
                                            -----------   ----------   -----------   ----------   -----------

Fixed charges and preferred
dividends combined.......................   $   92,813    $  83,321    $   73,028    $  72,171    $   67,850
                                            ===========   ==========   ===========   ==========   ===========

Ratio of adjusted net earnings
to fixed charges and preferred
dividends combined**.....................       (b)             1.1           1.2          1.3           1.1
                                            -----------   ==========   ===========   ==========   ===========

Deficiency of adjusted net earnings
to fixed charges and preferred
dividends combined.......................   $  (18,628)       N/D          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)
                                             ----------------------------------------------------------------
                                                2001         2000          1999         1998         1997
                                             ----------   ----------   -----------   ----------   -----------
<S>                                         <C>           <C>          <C>           <C>          <C>
Earnings(Loss) before income taxes
and member refunds                          $  (10,895)   $   2,627    $   14,081    $  20,265    $   (2,731)

Fixed charges - Interest.................        23,621      18,085        13,660        8,575        10,626
              - Rentals..................         2,479       3,193         3,017        2,604         2,135
                                            -----------   ----------   -----------   ----------   -----------
Total fixed charges......................        26,100      21,278        16,677       11,179        12,761
                                            -----------   ----------   -----------   ----------   -----------
Adjusted net earnings....................   $    15,205   $  23,905    $   30,758    $  31,444    $   10,030
                                            ===========   ==========   ===========   ==========   ===========

Ratio of adjusted net earnings
to total fixed charges...................       (a)             1.1           1.8          2.8        (a)
                                            -----------   ==========   ===========   ==========   ===========

Deficiency of adjusted net
earnings to total fixed charges..........   $  (10,895)       N/D          N/D          N/D        $  (2,731)
                                            ===========   ==========   ===========   ==========   ===========

Fixed charges and preferred dividends
 combined: Preferred dividend factor:
   Preferred dividend requirements.......   $    2,847    $   3,060    $    3,287    $   3,522     $   4,115
   Ratio of pre-tax earnings
   to after-tax earnings*................        43.7%        15.1%        279.4%       124.6%       (193.2%)
   Preferred dividend factor
   on pre-tax basis......................        6,515       20,265         1,176        2,827        (2,131)

Total fixed charges (above)..............       26,100       21,278        16,677       11,179        12,761
                                            -----------   ----------   -----------   ----------   -----------

Fixed charges and preferred
dividends combined.......................   $   32,615    $  41,543    $   17,853    $  14,006    $   10,630
                                            ===========   ==========   ===========   ==========   ===========

Ratio of adjusted net earnings
to fixed charges and preferred
dividends combined**.....................       (b)           (b)             1.7          2.2        (b)
                                            -----------   ----------   ===========   ==========   ===========

Deficiency of adjusted net earnings
to fixed charges and preferred
dividends combined.......................   $  (17,410)   $ (17,638)        N/D         N/D       $    (600)
                                            -----------   ==========   ===========   ==========   ===========
</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.