EXHIBIT 12



<PAGE>
<TABLE>
<CAPTION>


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


                                                      AGWAY INC. AND CONSOLIDATED SUBSIDIARIES
                                                             FOR THE YEARS ENDED JUNE 30,
                                                              (THOUSANDS OF DOLLARS)
                                            -----------------------------------------------------------------
                                                1999         1998          1997         1996         1995
                                            -----------   ----------   -----------   ----------   -----------
<S>                                         <C>           <C>          <C>           <C>          <C>
Earnings before income taxes and
member refunds...........................   $    5,968    $  24,266    $   16,583    $  21,070    $   (6,053)

Fixed charges - Interest.................       69,052       67,728        64,432       63,721        56,507
              - Rentals..................        5,578        4,651         3,772        3,004         2,789
                                            -----------   ----------   -----------   ----------   ----------
Total fixed charges......................       74,630       72,379        68,204       66,725        59,296
                                            -----------   ----------   -----------   ----------   ----------
Adjusted net earnings....................   $   80,598    $  96,645    $   84,787    $  87,795    $   53,243
                                            ===========   ==========   ===========   ==========   ==========

Ratio of adjusted net earnings to total
fixed charges............................          1.1          1.3           1.2          1.3        (a)
                                            ===========   ==========   ===========   ==========   ==========

Deficiency of adjusted net earnings to
total fixed charges......................        N/D         N/D           N/D           N/D      $    6,053
                                            ===========   ==========   ===========   ==========   ==========

Fixed charges and preferred dividends
combined:
Preferred dividend factor:
   Preferred dividend requirements.......   $    3,287    $   3,522    $    4,115    $   4,255    $    4,654
   Ratio of pre-tax earnings to
   after-tax earnings*...................        30.1%        50.2%         64.3%        52.9%         71.1%
   Preferred dividend factor on
   pre-tax basis.........................       10,920        7,016         6,400        8,043         6,546

Total fixed charges (above)..............       74,630       72,379        68,204       66,725        59,296
                                            -----------   ----------   -----------   ----------   ----------

Fixed charges and preferred dividends
combined.................................   $   85,550    $  79,395    $   74,604    $  74,768    $   65,842
                                            ===========   ==========   ===========   ==========   ==========

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

Deficiency of adjusted net earnings to
fixed charges and preferred dividends
combined.................................   $    4,952       N/D           N/D          N/D       $   12,599
                                            ===========   ==========   ===========   ==========   ==========
</TABLE>

*        Represents  pre-tax  adjusted net earnings from  continuing  operations
         divided by after-tax  earnings,  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>

<TABLE>
<CAPTION>
                    COMPUTATION OF RATIO OF MARGINS TO FIXED
                    CHARGES AND PREFERRED DIVIDENDS COMBINED


                                                                         AGWAY INC. (PARENT)
                                                                       FOR THE YEARS ENDED JUNE 30,
                                                                        (THOUSANDS OF DOLLARS)
                                            -----------------------------------------------------------------
                                                1999         1998          1997         1996         1995
                                            -----------   ----------   -----------   ----------   -----------
<S>                                         <C>           <C>          <C>           <C>          <C>
Earnings before income taxes and
member refunds...........................   $   (3,155)   $  14,326    $      816    $  22,861    $   (6,954)

Fixed charges - Interest.................       20,343       14,908        17,042       14,993        16,248
              - Rentals..................        3,637        3,162         2,504        1,790         2,235
                                            -----------   ----------   -----------   ----------   ----------
Total fixed charges......................       23,980       18,070        19,546       16,783        18,483
                                            -----------   ----------   -----------   ----------   ----------
Adjusted net earnings....................   $   20,825    $  32,396    $   20,362    $  39,644    $   11,529
                                            ===========   ==========   ===========   ==========   ==========

Ratio of adjusted net earnings to total
fixed charges............................      (a)              1.8           1.0          2.4       (a)
                                            ===========   ==========   ===========   ==========   ==========

Deficiency of adjusted net earnings to
total fixed charges......................       (3,155)      N/D           N/D          N/D           (6,954)
                                            ===========   ==========   ===========   ==========   ===========

Fixed charges and preferred dividends
combined:
Preferred dividend factor:
   Preferred dividend requirements.......   $    3,287    $   3,522    $    4,115    $   4,255    $    4,654
   Ratio of pre-tax earnings to
   after-tax earnings*...................     1,517.8%       149.4%        934.9%        91.0%        327.8%
   Preferred dividend factor on..........
   pre-tax basis.........................          217        2,358           440        4,677         1,419

Total fixed charges (above)..............       23,980       18,070        19,546        1,790        18,483
                                            -----------   ----------   -----------   ----------   ----------
Fixed charges and preferred dividends
combined.................................   $   24,197    $  20,428    $   19,986    $   6,467    $   19,902
                                            ===========   ==========   ===========   ==========   ==========

Ratio of adjusted net earnings to fixed
charges and preferred dividends
combined**...............................      (b)              1.6           1.0          1.8       (b)
                                            ===========   ==========   ===========   ==========   ==========

Deficiency of adjusted net earnings to
fixed charges and preferred dividends
combined.................................       (3,372)      N/D           N/D          N/D           (8,373)
                                            ===========   ==========   ===========   ==========   ===========
</TABLE>
*        Represents  pre-tax  adjusted net earnings from  continuing  operations
         divided by after-tax  earnings,  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.