EXHIBIT 10.(iii)A

                  FY 2000 STANDARD VARIABLE COMPENSATION PLAN
                     (SEPTEMBER 1, 1999 - AUGUST 31, 2000)

OBJECTIVE
               To pay additional cash beyond base salary to eligible employees
               of Farmland Industries, Inc. or one of its units, contingent
               upon the company's financial performance.  Farmland Industries,
               Inc. ("Corporate") must achieve a threshold or minimum return on
               equity before extraordinary items, or no payout occurs,
               regardless of individual business/service unit results.

               This plan includes four important exhibits which are an integral
               part of the plan structure.  Please be aware of and consult
               them.  They include the following:

               Exhibit A -    Corporate financial performance criteria
                                   and levels

               Exhibit B -    A summary schedule of payout opportunities by
                              earnings level

               Exhibit C -    Additional detail on determination of payout

               Exhibit D -    Descriptions and definitions of accounting terms
                              and methodologies relevant to this plan

PLAN STRUCTURE
               The plan provides a one-time cash payment following the
               conclusion of FY 2000 to eligible employees for the attainment
               of corporate objectives. The corporate standard measure is
               Return On Equity (ROE).  With Senior Management approval,
               including the Chief Executive Officer, a business unit may be
               based completely on corporate ROE.  Alternatively, a business
               unit may be based partially or completely on unit measures, with
               full Senior Management approval, and would thus not participate
               in this standard plan.  Farmland would have to achieve at least
               the threshold ROE level before any payout would occur under a
               customized unit plan.

               For appointed corporate officers, 50% of payout is based on ROE
               performance; 50% is based on cost savings realized from major
               corporate initiatives, including strategic sourcing, Reliant
               Energy, SAP and corporate administrative expense control.

               A further requirement for payout to Farmland Industries, Inc.
               appointed corporate officers is that cash patronage payments to
               members must occur; if not, this group will receive no payout
               under the terms of this plan.

ELIGIBILITY
               The following types of employees are ineligible for payout
               under the Standard Variable Compensation Plan:

               o Employees whose terms and conditions of employment are
                 subject to collective bargaining
               o Employees hired after 6/1/2000 (Waived if the employee is a
                 former regular full time employee during FY 2000.  Payout is
                 prorated)
               o Regular part time employees with less than 500 hours of
                 service during FY 2000
               o Temporary employees with less than 1000 hours of service
                 during FY 99
               o Employees terminated for cause prior to 8/31/2000
               o Employees who terminate voluntarily prior to 8/31/2000
                 (Employees who terminate to accept a position with a member
                 cooperative may be eligible for a prorated payout.)
               o Employees included in variable compensation plans other than
                 the standard variable compensation plan.  Exceptions must be
                 approved by Senior Management of the affected area and by the
                 VP, Human Resources.

               Certain classes of employees who terminate prior to the end of
               the fiscal year will receive payout based on their eligible
               earnings during the year:

                    Death/Disability
                    Retirement
                    Reduction in Force
                    Focus Team member obtaining outside employment
                    Layoff
                    Leave of Absence
                    Hired after 9/1/99 but on or before 6/1/2000

               Involuntary separations, other than for reasons included in the
               list above, which are not for performance or for cause, may
               result in prorated payout.

               Employees who voluntarily terminate prior to 08/31/2000 for the
               purpose of assuming a position with a system member cooperative
               may be eligible to receive a payout.  To secure eligibility, the
               employee must notify Corporate Human Resources, in writing, at
               the time of separation and ensure that the  system member
               cooperative notifies Farmland's Corporate Human Resources
               Department, in writing, to verify employment from the point of
               separation through the conclusion of the plan year.

               Employees on formal disciplinary or performance probation are
               ineligible for that portion of the fiscal year.

DETERMINATION
OF PAYOUT
               Payout is determined as a percentage of eligible gross wages or
               salary paid during the fiscal year, as shown in Exhibits B and
               C.  Corporate performance measurements are labeled "threshold",
               "target", and "maximum".

               Threshold - The minimal performance level required for the plan
               to pay out. No payout occurs for achievement below threshold.

               Target    - Identifies the actual performance objective.


               Maximum - A performance level exceeding target at which the
               payout as a percentage of eligible gross wages or salary is
               frozen.  No payout occurs beyond these percentages regardless of
               performance.

               Payout for performance between threshold and target or target
               and maximum is prorated.

               In the event of a merger, change of control, or other major
               organizational structure change during the course of the plan
               year, the rate of earnings for the year, up to the effective
               date of the change, would be projected to the end of the year in
               order to derive an ROE performance estimate.  If, at the date of
               the consummation of the merger, change of control, or other
               major organizational structure change,  the projected
               performance were at the threshold level or above compared to the
               most recent 6-year history for the first six months of a fiscal
               year, then a payout pro-rated for the portion of the year
               completed prior to the major organizational change would occur.
               A similar projection to year end would occur in order to
               determine performance level and a pro-rated payout for the major
               savings initiative portion applicable to appointed corporate
               officers.  In no event, however, will payout occur if Farmland
               experiences negative year-to-date earnings up to the point of
               merger, change of control, or other major organizational
               structure change.


     APPROVED:

               ________________________________________
                    H.D. Cleberg
                    President and CEO


                                   EXHIBIT A


                       FY 2000 PERFORMANCE CRITERIA AND GOALS



     Corporate Return on Equity:



     Threshold      8%
     Target        11%


     Maximum       16%

     Savings From Major Initiatives *(Appointed Corporate Officers):


     Threshold      $30,000,000

     Target         $42,000,000

     Maximum        $55,000,000


     *Includes strategic sourcing project, Reliant Energy, SAP and corporate
     expenses.
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                                                                EXHIBIT B
                                               FY 2000 STANDARD VARIABLE COMPENSATION PLAN

      Threshold - Target - Maximum                         Earnings                             V Comp Calculation Point*

<S>                                     <C>                                            <C>

               3 - 5 - 8                              All Non - Exempt**                              Any Earnings

               3 - 5 - 8                             Below $36,050 Exempt                            Actual Earnings

               3 - 6 - 10                              $36,050 - $39,654                                 $37,855

               4 - 7 - 12                              $39,655 - $43,619                                 $41,640

               5 - 8 - 15                              $43,620 - $50,164                                 $46,895

              5 - 10 - 18***                           $50,165 - $57,689                                 $53,930

              6 - 12 - 22                              $57,690 - $66,344                                 $62,020

              7 - 15 - 27                              $66,345 - $76,299                                 $71,325

              8 - 18 - 33                              $76,300 - $87,744                                 $82,025

              10 - 22 - 40                            $87,745 - $100,909                                 $94,330

              12 - 25 - 46                            $100,910 - $116,049                               $108,480

              12 - 25 - 46                            $116,050 - $133,459                               $124,755

              12 - 25 - 46                            $133,460 - $153,479                               $143,470

              14 - 28 - 52                                $153,480 +                                 Actual Earnings
                                                                                                 (Non - FII Executives)

</TABLE>

*    I.E., for any exempt employee whose earnings fall within a particular
     range, the payout is calculated on this middle value.
**   Includes Truck Drivers
***  Employees legitimately considered Production Supervisors will receive AT
     LEAST this percentage payout opportunity level, regardless of actual
     pay.  Calculation point against which percentage is applied is based on
     actual pay.


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                                                           EXECUTIVES

      Threshold - Target - Maximum                      Earnings                             V Comp Calculation Point

<S>                                     <C>                                     <C>

              18 - 36 - 67                                                                  Designated FII Executives

              22 - 45 - 83                                                                  Designated FII Executives

          Determined by Board                                                                   President and CEO

                                                   $92,700 - $111,239                                $101,970

                                                  $111,240 - $133,489                                $122,365

                                                  $133,490 - $160,189                                $146,840

                                                  $160,190 - $192,229                                $176,210

                                                  $192,230 - $230,674                                $211,455

                                                  $230,675 - $276,809                                $253,745

                                                  $276,810 - $332,169                                $304,490

                                                  $332,170 - $398,604                                $365,390

                                                  $398,605 - $478,324                                $438,465

                                                  $478,325 - $573,989                                $526,160

                                                  $573,990 - $688,789                                $631,390

                                                  $688,790 - $826,549                                $757,170

                                                       $826,550 +                                Actual Earnings

</TABLE>


Note:  These scales are different from those used in Fiscal Year 1999.
                                     EXHIBIT C

                         DETAIL ON DETERMINATION OF PAYOUT

     NON-EXEMPT EMPLOYEES:
          Payout is determined as a percentage of eligible gross earnings paid
          from 9/1/99 to 8/31/2000.

          Note:     Eligible gross wages may exclude some lump sums.

     EXEMPT/MANAGEMENT EMPLOYEES:
          Payout is determined as a percentage of the Variable Comp Calculation
          Point based on eligible gross wages from 9/1/99 to 8/31/2000.
          Exhibit B grid lists the percentage opportunities assigned to each
          Variable Comp Calculation Point.**

          NOTE:     Lump Sum amounts given during the fiscal year will not be
                    included in Eligible gross wages unless they were given in
                    lieu of merit increase.

          **Variable Comp Calculation Point and designated percentage will be
          used unless comparison to FY 96 salary range midpoint and grade
          determined percentage results in a higher payout amount; but once a
          person has transitioned to the current variable pay computation
          method, that person cannot return to receiving a payout based on the
          FY 96 salary range midpoint.  Individuals hired, promoted or demoted
          after 9/1/96 are ineligible for this comparison.

     ELIGIBLE EARNINGS:
          Base earnings, merit increase pay, lump sum in lieu of a merit
          increase, shift differential, bridge differential, and geographic
          differential.  Production supervisors flat rate overtime payments.
          Non-exempts overtime payments.

     NON-ELIGIBLE EARNINGS:
          The following is list of the most common items not included as

          earnings:
               Vacation and personal holiday balance lump sum payments
               Previous FY variable compensation payment
               Sales Commission, SPIFFs payment, bonus, etc.
               Severance pay
               Relocation reimbursements

          Exceptions to normal eligibility or ineligibility of earnings must be
          approved in advance by the appropriate FII Vice President and the
          Director, Human Resource Information Team.


                                     EXHIBIT D

                          ACCOUNTING TERMS AND METHODOLOGY
                                    DEFINITIONS


INCOME is defined as income before taxes and extraordinary items as reported

for Key Results purposes.

EQUITY is the prior year's ending equity.  Equity includes all capital shares

and equities (preferred, common and associate member shares, patronage refunds
for reinvestment, and earned surplus).  It does not include minority owners
equity in subsidiaries.

RETURN ON EQUITY (ROE) is the ratio determined by dividing Income by Equity.


                TREATMENT OF THE VARIABLE COMPENSATION EXPENSE


The ROE targets have been expressed after the recognition of the variable
compensation expense.  In calculating the level at which variable compensation
will be paid, the variable compensation expense is added back to Income.  For
example, assume Equity is $923,000,000 and the ROE for threshold is expressed
as 8%.  This would correspond to Income of $73,840,000 (.08 times
$923,000,000).  However, the $73,840,000 includes variable compensation expense
(variable compensation expense is budgeted at target and an accrual is made
each month).


                            EXAMPLE OF REQUIRED INCOME*
            (ASSUMING PRIOR YEAR ENDING EQUITY OF $923,000,000 MILLION)

ROE                                                    Required Income

Threshold   8.0%                                       $  73,840,000
Target     11.0%                                       $  101,530,000
Maximum    16.0%                                       $  147,680,000

     *Actual FY 99 ending ROE has yet to be determined.  When it is, the income
     figures will be modified accordingly.

                        DETERMINATION OF EXTRAORDINARY ITEM


If Farmland achieves its performance goals, but experiences a loss year due to
extraordinary items, the Board of Directors of Farmland Industries, Inc.
maintains the discretion to authorize, adjust, or deny payout of the management
portion of the Variable Compensation Plan (See the definition of management
employees in the main plan document and in Exhibit "A").  This also applies to
management level employees who participate in customized plans.  Employees on
sales incentive plans, with base pay administered at a lower level, are NOT

affected by this provision unless specific portions of their plans are tied to
corporate performance.

                     GUIDELINES FOR "EXTRAORDINARY" DESIGNATION

The Chief Financial Officer and the Chief Executive Officer must approve the
classification of any item as "extraordinary." Transactions deemed as
"extraordinary" and therefore excluded in the determination of Income for
variable compensation include:

o The punitive portion of litigation results in favor of or against Farmland,
  excluding redemptive payments on normal business matter where the intent is
  to substantially restore net income to where it would have been had the
  incident not occurred.

o Non-recurring (one-time) adjustments to income or expense such as the gain
  from settlement of the retirement plan.  Any such items would generally be
  reported as extraordinary items on Farmland financial statements under
  generally accepted accounting principles.

o The gain or loss on the disposal of a major asset, group of assets, or
  investments.

o The gain or loss from any new business activity or business unit added

  subsequent to the approval of the Business Plan, provided that the
  acquisition was such that it required specific Board of Director approval
  outside of the business plan.

o The impact of adjustments resulting from LIFO inventory computations or
  reserves.

o Other items as approved.

     Specific requests by an operating unit for treatment of an item as
     "extraordinary" must be approved by the Senior Management representative
     before review by the Chief Financial Officer and the Chief Executive
     Officer.