<PAGE>
                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                   FORM 10-Q/A

                          Amendment No. 1 to Form 10-Q

(Mark One)

[X]      Quarterly report pursuant to Section 13 or 15(d) of the Securities
         Exchange Act of 1934

         For the quarterly period ended June 30, 2003*
                                       or

[ ]      Transition report pursuant to Section 13 or 15(d) of the Securities
         Exchange Act of 1934

         For the transition period from _______________ to ________________.

                        Commission file number 333-84486

                               LAND O'LAKES, INC.
--------------------------------------------------------------------------------
             (Exact Name of Registrant as Specified in Its Charter)

                Minnesota                                 41-0365145
--------------------------------------------------------------------------------
     (State or Other Jurisdiction of                    (I.R.S. Employer
     Incorporation or Organization)                   Identification No.)

       4001 Lexington Avenue North
         Arden Hills, Minnesota                              55112
--------------------------------------------------------------------------------
(Address of Principal Executive Offices)                   (Zip Code)

                                 (651) 481-2222
--------------------------------------------------------------------------------
              (Registrant's Telephone Number, Including Area Code)

         Indicate by check mark whether the registrant: (1) has filed all
reports required to be filed by Section 13 or 15(d) of the Securities Exchange
Act of 1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days. Yes [ ] No [X]

         Indicate by check mark whether the registrant is an accelerated filer
(as defined in rule 12-b-2 of the Act). Yes [ ] No [X]

         The number of shares of the registrant's common stock outstanding as of
July 31, 2003: 1,104 shares of Class A common stock, 4,950 shares of Class B
common stock, 192 shares of Class C common stock, and 1,140 shares of Class D
common stock.

         Land O'Lakes, Inc. is a cooperative. Our voting and non-voting common
equity can only be held by our members. No public market for voting and
non-voting common equity of Land O'Lakes, Inc. is established and it is
unlikely, in the foreseeable future, that a public market for our voting and
non-voting common equity will develop.

         We maintain a website on the Internet through which additional
information about Land O'Lakes, Inc. is available. Our website address is
www.landolakesinc.com. Our annual reports on Form 10-K, quarterly reports on
Form 10-Q, current reports on Form 8-K, press releases and earnings releases are
available, free of charge, on our website when they are released publicly or
filed with the SEC.

         *Although Land O'Lakes, Inc. is not currently required to file this
Quarterly Report on Form 10-Q pursuant to Section 13 or 15(d), we are filing
voluntarily.




<PAGE>

                                      INDEX


<Table>
<Caption>
                                                                                                             PAGE
                                                                                                             ----
<S>                                                                                                          <C>
PART I.  FINANCIAL INFORMATION .......................................................................         4

Item I. Financial Statements .........................................................................         4

LAND O'LAKES, INC
Consolidated Balance Sheets as of June 30, 2003 (unaudited) and December 31, 2002 ....................         4
Consolidated Statements of Operations for the three and six months ended June 30, 2003 and 2002
(unaudited) ..........................................................................................         5
Consolidated Statements of Cash Flows for the six months ended June 30, 2003 and 2002 (unaudited) ....         6
Notes to Consolidated Financial Statements (unaudited) ...............................................         7

LAND O'LAKES FARMLAND FEED LLC
Consolidated Balance Sheets as of June 30, 2003 (unaudited) and  December 31, 2002 ...................        22
Consolidated Statements of Operations for the three and six months ended June 30, 2003 and 2002
(unaudited)...........................................................................................        23

Consolidated Statements of Cash Flows for the six months ended June 30, 2003 and 2002 (unaudited) ....        24
Notes to Consolidated Financial Statements (unaudited) ...............................................        25

PURINA MILLS, LLC
Consolidated Balance Sheets as of June 30, 2003 (unaudited) and December 31, 2002 ....................        37
Consolidated Statements of Operations for the three months and six months ended June 30, 2003 and 2002
  (unaudited) ........................................................................................        38
Consolidated Statements of Cash Flows for the six months ended June 30, 2003 and 2002 (unaudited) ....        39
Notes to Consolidated Financial Statements (unaudited) ...............................................        40

PART II.  OTHER INFORMATION ..........................................................................        44

Item 6.  Exhibits and Reports on Form 8-K ............................................................        44

SIGNATURES ...........................................................................................        45
</Table>



                                       2
<PAGE>

                               LAND O'LAKES, INC.

                                EXPLANATORY NOTE

The purpose of this Amendment No. 1 on Form 10-Q/A to the Quarterly Report on
Form 10-Q of Land O'Lakes, Inc. (the "Company") for the quarter ended June 30,
2003 is to file (1) the supplemental consolidating schedules of Land O'Lakes
Farmland LLC ("Farmland Feed") which separately present the financial data of
Purina Mills, LLC, a wholly owned subsidiary of Farmland Feed ("Purina Mills"),
and (2) the financials statements of Purina Mills.

The Company's Chief Executive Officer and Chief Financial Officer have also
reissued their certifications required by Section 302 and Section 906 of the
Sarbanes-Oxley Act of 2002 in connection with this amendment and the Company has
included an amended exhibit list to list the certifications filed with this
amendment. Except as provided herein, all other information contained in the
original Form 10-Q remains unchanged.



                                       3
<PAGE>

PART I. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

                               LAND O'LAKES, INC.

                           CONSOLIDATED BALANCE SHEETS

<Table>
<Caption>
                                                                         JUNE 30,       DECEMBER 31,
                                                                           2003             2002
                                                                       ------------     ------------
                                                                             ($ IN THOUSANDS)
                                                                       (UNAUDITED)
<S>                                                                    <C>              <C>
ASSETS

Current assets:
  Cash and short-term investments ................................     $     85,480     $     64,327
  Restricted cash ................................................           20,000               --
  Receivables, net ...............................................          392,856          567,584
  Receivable from legal settlement ...............................               --           96,707
  Inventories ....................................................          485,098          446,386
  Prepaid expenses ...............................................           42,868          189,246
  Other current assets ...........................................           43,745           13,878
                                                                       ------------     ------------
          Total current assets ...................................        1,070,047        1,378,128

Investments ......................................................          598,461          545,592
Property, plant and equipment, net ...............................          563,085          579,860
Property under capital lease .....................................          101,388          105,736
Goodwill, net ....................................................          315,545          323,413
Other intangibles ................................................          103,020          101,770
Other assets .....................................................          204,057          211,823
                                                                       ------------     ------------
          Total assets ...........................................     $  2,955,603     $  3,246,322
                                                                       ============     ============

LIABILITIES AND EQUITIES

Current liabilities:
  Notes and short-term obligations ...............................     $     52,138     $     37,829
  Current portion of long-term debt ..............................           65,814          104,563
  Current portion of obligation under capital lease ..............            8,867          108,279
  Accounts payable ...............................................          402,731          701,786
  Accrued expenses ...............................................          221,422          204,629
  Patronage refunds payable and other member equities payable ....           10,770           12,388
                                                                       ------------     ------------
          Total current liabilities ..............................          761,742        1,169,474

Long-term debt ...................................................          972,980        1,007,308
Obligation under capital lease ...................................           94,808               --
Employee benefits and other liabilities ..........................          104,210          104,340
Deferred tax liabilities .........................................           27,907               --
Minority interests ...............................................           60,060           53,687

Equities:
  Capital stock ..................................................            2,147            2,190
  Member equities ................................................          872,972          873,659
  Retained earnings ..............................................           58,777           35,664
                                                                       ------------     ------------
          Total equities .........................................          933,896          911,513
                                                                       ------------     ------------
Commitments and contingencies

          Total liabilities and equities .........................     $  2,955,603     $  3,246,322
                                                                       ============     ============
</Table>

          See accompanying notes to consolidated financial statements.


                                       4
<PAGE>

                               LAND O'LAKES, INC.

                      CONSOLIDATED STATEMENTS OF OPERATIONS

<Table>
<Caption>
                                                       FOR THE THREE MONTHS ENDED           FOR THE SIX MONTHS ENDED
                                                                JUNE 30,                            JUNE 30,
                                                         2003              2002              2003              2002
                                                     ------------      ------------      ------------      ------------
                                                                             ($ IN THOUSANDS)
                                                                                (UNAUDITED)
<S>                                                  <C>               <C>               <C>               <C>

Net sales ......................................     $  1,396,043      $  1,419,769      $  2,850,495      $  2,952,002
Cost of sales ..................................        1,271,120         1,295,866         2,600,023         2,680,124
                                                     ------------      ------------      ------------      ------------
Gross profit ...................................          124,923           123,903           250,472           271,878

Selling, general and administration ............          110,260           124,193           230,229           251,714
Restructuring and impairment charges ...........            1,775             3,841             2,867             7,276
                                                     ------------      ------------      ------------      ------------
Earnings (loss) from operations ................           12,888            (4,131)           17,376            12,888

Interest expense, net ..........................           16,891            17,401            34,276            34,948
Gain on legal settlements ......................          (10,288)          (32,699)          (19,177)          (32,699)
Gain on sale of intangibles ....................             (550)               --              (550)           (4,184)
Loss (gain) on divestiture of businesses .......              700            (1,205)              700            (1,205)
Gain on sale of investment .....................             (346)               --              (846)               --
Equity in earnings of affiliated companies .....          (51,414)          (44,227)          (50,431)          (34,366)
Minority interest in earnings (loss) of
  subsidiaries .................................            1,427            (1,024)            2,916               (90)
                                                     ------------      ------------      ------------      ------------
Earnings before income taxes ...................           56,468            57,623            50,488            50,484
Income tax expense .............................           11,787             9,327             6,178             3,164
                                                     ------------      ------------      ------------      ------------
Net earnings ...................................     $     44,681      $     48,296      $     44,310      $     47,320
                                                     ============      ============      ============      ============

Applied to:
  Member equities
     Allocated patronage refunds ...............     $     26,070      $     42,222      $     35,864      $     53,796
     Deferred equities .........................             (638)            1,493           (14,531)          (10,593)
                                                     ------------      ------------      ------------      ------------
                                                           25,432            43,715            21,333            43,203
  Retained earnings ............................           19,249             4,581            22,977             4,117
                                                     ------------      ------------      ------------      ------------
                                                     $     44,681      $     48,296      $     44,310      $     47,320
                                                     ============      ============      ============      ============
</Table>

          See accompanying notes to consolidated financial statements.



                                       5
<PAGE>

                               LAND O'LAKES, INC.

                      CONSOLIDATED STATEMENTS OF CASH FLOWS

<Table>
<Caption>
                                                                    FOR THE SIX MONTHS ENDED
                                                                            JUNE 30,
                                                                     2003              2002
                                                                 ------------      ------------
                                                                        ($ IN THOUSANDS)
                                                                           (UNAUDITED)
<S>                                                              <C>               <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
  Net earnings .............................................     $     44,310      $     47,320
  Adjustments to reconcile net earnings to net cash
   provided by operating activities:
     Depreciation and amortization .........................           54,004            52,447
     Amortization of deferred financing charges ............            1,846             1,587
     Bad debt expense ......................................            1,760             2,636
     Proceeds from patronage revolvement received ..........            1,316               261
     Non-cash patronage income .............................           (1,222)             (203)
     Receivable from legal settlement ......................           96,707                --
     Decrease (increase) in other assets ...................            8,302           (23,336)
     (Decrease) increase in other liabilities ..............             (130)           25,863
     Restructuring and impairment charges ..................            2,867             7,276
     Loss (gain) on divestiture of businesses ..............              700            (1,205)
     Equity in earnings of affiliated companies ............          (50,431)          (34,366)
     Minority interests ....................................            2,916               (90)
     Other .................................................           (4,191)           (2,141)
  Changes in current assets and liabilities, net of
   acquisitions and divestitures:
     Receivables ...........................................          168,241           107,416
     Inventories ...........................................          (37,581)          (57,268)
     Other current assets ..................................          150,298            90,719
     Accounts payable ......................................         (300,513)         (196,464)
     Accrued expenses ......................................           14,155             9,700
                                                                 ------------      ------------
  Net cash provided by operating activities ................          153,354            30,152

CASH FLOWS FROM INVESTING ACTIVITIES:
  Additions to property, plant and equipment ...............          (34,954)          (34,841)
  Payments for investments .................................           (9,675)           (4,669)
  Proceeds from divestiture of businesses ..................              465             1,710
  Proceeds from sale of investments ........................            3,000            21,059
  Proceeds from sale of property, plant and equipment ......            8,015             9,828
  Dividends from investments in affiliated companies .......            2,798             4,929
  Increase in restricted cash ..............................          (20,000)               --
  Other ....................................................            2,980             2,778
                                                                 ------------      ------------
  Net cash (used) provided by investing activities .........          (47,371)              794

CASH FLOWS FROM FINANCING ACTIVITIES:
  Increase in short-term debt ..............................           14,309            10,320
  Proceeds from issuance of long-term debt .................            1,202             2,622
  Payments on principal of long-term debt ..................          (73,052)          (60,147)
  Payments on principal of capital lease obligation ........           (4,435)               --
  Payments for redemption of member equities ...............          (23,662)          (36,472)
  Other ....................................................              808             2,008
                                                                 ------------      ------------
  Net cash used by financing activities ....................          (84,830)          (81,669)
                                                                 ------------      ------------
  Net increase (decrease) in cash and short-term
    investments ............................................           21,153           (50,723)
Cash and short-term investments at beginning of period .....           64,327           130,169
                                                                 ------------      ------------
Cash and short-term investments at end of period ...........     $     85,480      $     79,446
                                                                 ============      ============

SUPPLEMENTARY DISCLOSURE OF CASH FLOW INFORMATION
 Cash paid during periods for:
  Interest, net of interest capitalized ....................     $     35,585      $     35,784
  Income taxes recovered ...................................     $     (3,743)     $    (27,616)
</Table>

          See accompanying notes to consolidated financial statements.



                                       6
<PAGE>

                               LAND O'LAKES, INC.

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                           ($ IN THOUSANDS IN TABLES)
                                   (UNAUDITED)


1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

         The unaudited consolidated financial statements reflect, in the opinion
of the management of Land O'Lakes, Inc. (the "Company"), all normal, recurring
adjustments necessary for a fair statement of the financial position and results
of operations and cash flows for the interim periods. The statements are
condensed and therefore do not include all of the information and footnotes
required by accounting principles generally accepted in the United States of
America for complete financial statements. For further information, refer to the
audited consolidated financial statements and footnotes for the year ended
December 31, 2002 included in our Annual Report on Form 10-K. The results of
operations and cash flows for interim periods are not necessarily indicative of
results for a full year.

RECENT ACCOUNTING PRONOUNCEMENTS

         On January 1, 2003, the Company adopted Statement of Financial
Accounting Standards 146, "Accounting for Costs Associated with Exit or Disposal
Activities." The standard requires that a liability for a cost associated with
an exit or disposal activity be recognized and measured initially at fair value
when the liability is incurred. Under prior accounting literature, certain costs
for exit activities were recognized at the date a company committed to an exit
plan. The provisions of the standard are effective for exit or disposal
activities initiated after December 31, 2002.

         On January 17, 2003, the FASB issued Interpretation No. 46,
"Consolidation of Variable Interest Entities, an Interpretation of ARB 51," (FIN
46). The primary objectives of FIN 46 are to provide guidance on the
identification and consolidation of variable interest entities, or VIEs, which
are entities for which control is achieved through means other than through
voting rights. FIN 46 is effective immediately for all new variable interest
entities created or acquired after January 31, 2003 and no later than July 1,
2003 for variable interest entities created or acquired prior to February 1,
2003. Accordingly, the Company adopted FIN 46 on July 1, 2003 and expects to
begin consolidating its joint venture in MoArk, LLC, an egg production and
marketing company, in the third quarter of 2003. The adoption of FIN 46 did not
have a material impact on the Company's results of operations and financial
condition.

         In May, 2003, The FASB issued Statement of Financial Accounting
Standards 150, "Accounting for Certain Financial Instruments with
Characteristics of both Liabilities and Equity" The standard establishes
standards for how an issuer classifies and measures certain financial
instruments with characteristics of both liabilities and equity. It requires
that an issuer classify a financial instrument that is within its scope as a
liability (or an asset in some circumstances). The standard is effective for the
Company January 1, 2004, and the Company does not currently expect this standard
to have a material impact on its results of operations or financial position.
The Company already classifies its Capital Securities as long-term debt and the
related financing costs as interest expense.

2. RESTRICTED CASH

    On March 28, 2003, Cheese & Protein International ("CPI"), a consolidated
joint venture, amended its lease for property and equipment relating to its
cheese manufacturing and whey processing plant in Tulare, California. The
amendment postponed the measurement of the fixed charge coverage ratio
requirement until March 2005. The amendment requires Land O'Lakes to maintain a
$20 million cash account (which may be replaced by a letter of credit at the
Company's option) to support the lease. The cash account or letter of credit
would only be drawn upon in the event of a CPI default, and would reduce amounts
otherwise due under the lease. The requirement would be lifted pending the
achievement of certain financial targets by CPI.



                                       7
<PAGE>

3. RECEIVABLES

    A summary of receivables is as follows:

<Table>
<Caption>
                                                                        JUNE 30,       DECEMBER 31,
                                                                          2003             2002
                                                                      ------------     ------------
<S>                                                                   <C>              <C>
     Trade accounts .............................................     $    234,745     $    237,106
     Notes and contracts ........................................           58,737           44,565
     Notes from sale of trade receivables (see Note 4) ..........           75,111          225,144
     Other ......................................................           44,380           79,024
                                                                      ------------     ------------
                                                                           412,973          585,839
     Less allowance for doubtful accounts .......................           20,117           18,255
                                                                      ------------     ------------
     Total receivables, net .....................................     $    392,856     $    567,584
                                                                      ============     ============
</Table>

    A substantial portion of Land O'Lakes receivables is concentrated in the
agricultural industry. Collections of these receivables may be dependent upon
economic returns from farm crop and livestock production. The Company's credit
risks are continually reviewed, and management believes that adequate provisions
have been made for doubtful accounts.

4. RECEIVABLES PURCHASE FACILITY

    In December 2001, the Company established a $100.0 million receivables
purchase facility with CoBank, ACB ("CoBank"). A wholly-owned, unconsolidated
qualifying special purpose entity ("QSPE") was established to purchase certain
receivables from the Company. CoBank has been granted an interest in the pool of
receivables owned by the QSPE. The transfers of the receivables from the Company
to the QSPE are structured as sales and, accordingly, the receivables
transferred to the QSPE are not reflected in the consolidated balance sheet.
However, the Company retains credit risk related to the repayment of the notes
receivable with the QSPE, which, in turn, is dependent upon the credit risk of
the QSPE's receivables pool. Accordingly, the Company has retained reserves for
estimated losses. The Company expects no significant gains or losses from the
facility. At June 30, 2003, $80.0 million was outstanding under this facility.
The total accounts receivable sold during the three months ended June 30, 2003
and 2002 were $571.9 million and $610.7 million, respectively. The total
accounts receivable sold during the six months ended June 30, 2003 and 2002 were
$1,244.7 million and $1,264.8 million, respectively.

5. INVENTORIES

    A summary of inventories is as follows:

<Table>
<Caption>
                                                                        JUNE 30,       DECEMBER 31,
                                                                          2003             2002
                                                                      ------------     ------------
<S>                                                                   <C>              <C>
     Raw materials ..............................................     $    142,086     $    141,849
     Work in process ............................................           34,288           33,707
     Finished goods .............................................          308,724          270,830
                                                                      ------------     ------------
     Total inventories ..........................................     $    485,098     $    446,386
                                                                      ============     ============
</Table>

6. INVESTMENTS

    A summary of investments is as follows:

<Table>
<Caption>
                                                                        JUNE 30,       DECEMBER 31,
                                                                          2003             2002
                                                                      ------------     ------------
<S>                                                                   <C>              <C>
     CF Industries, Inc. ........................................     $    249,502     $    249,502
     Agriliance LLC .............................................          135,611           91,629
     MoArk LLC ..................................................           56,731           44,678
     Ag Processing Inc. .........................................           38,304           37,854
     Advanced Food Products LLC .................................           27,943           27,418
     CoBank, ACB ................................................           20,921           22,061
     Universal Cooperatives .....................................            6,473            6,473
     Melrose Dairy Proteins, LLC ................................            5,628            6,579
     Prairie Farms Dairy, Inc. ..................................            5,440            5,092
     Other -- principally cooperatives and joint ventures .......           51,908           54,306
                                                                      ------------     ------------
     Total investments ..........................................     $    598,461     $    545,592
                                                                      ============     ============
</Table>



                                       8
<PAGE>

7. GOODWILL AND OTHER INTANGIBLE ASSETS

GOODWILL

The carrying amount of goodwill is as follows:

<Table>
<Caption>
                                                                        JUNE 30,       DECEMBER 31,
                                                                          2003             2002
                                                                      ------------     ------------
<S>                                                                   <C>              <C>
     Dairy Foods ................................................     $     66,260     $     66,718
     Feed .......................................................          156,463          156,839
     Seed .......................................................           13,423           16,948
     Swine ......................................................              620              647
     Agronomy ...................................................           66,778           69,823
     Other ......................................................           12,001           12,438
                                                                      ------------     ------------
     Total goodwill .............................................     $    315,545     $    323,413
                                                                      ============     ============
</Table>

    Goodwill decreases in Dairy Foods, Feed, Swine, Agronomy and Other were due
to amortization on joint ventures and cooperatives. The goodwill decrease of
$3.5 million in the Seed segment was related to amortization and
reclassifications.

OTHER INTANGIBLE ASSETS

<Table>
<Caption>
                                                                        JUNE 30,       DECEMBER 31,
                                                                          2003             2002
                                                                      ------------     ------------
<S>                                                                   <C>              <C>
     Amortized other intangible assets:
       Trademarks, less accumulated amortization
          of $1,498 and $1,615, respectively ....................     $      2,471     $      2,725
       Patents, less accumulated amortization of
          $1,997 and $1,394, respectively .......................           14,376           14,979
       Agreements not to compete, less accumulated
          amortization of $2,630 and $2,324, respectively .......            1,570            1,976
       Other intangible assets, less accumulated
          amortization of $7,004 and $7,343, respectively .......            7,640            5,127
                                                                      ------------     ------------
     Total amortized other intangible assets ....................           26,057           24,807
     Total non-amortized other intangible assets - trademarks ...           76,963           76,963
                                                                      ------------     ------------

     Total other intangible assets ..............................     $    103,020     $    101,770
                                                                      ============     ============
</Table>

    Amortization expense for the three months ended June 30, 2003 and 2002 was
$1.2 million and $1.2 million, respectively. Amortization expense for the six
months ended June 30, 2003 and 2002 was $2.3 million and $2.5 million,
respectively. The estimated amortization expense related to other intangible
assets subject to amortization for the next five years will approximate $3.0
million annually. The weighted-average life of the intangible assets subject to
amortization is approximately 12 years.

8. RESTRUCTURING AND IMPAIRMENT CHARGES

RESTRUCTURING CHARGES

    For the three months ended June 30, 2003, the Company recorded restructuring
charges of $1.5 million. Of this amount, Dairy Foods recorded a restructuring
charge of $0.6 million which represented severance costs as a result of the
planned closing of a facility in the Upper Midwest. Feed recorded a
restructuring charge of $0.6 million which represented severance costs related
to closing feed plants, and Seed recorded a restructuring charge of $0.3 million
for severance costs related to closing a facility.

    For the six months ended June 30, 2003, the Company recorded restructuring
charges of $2.5 million. Of this amount, Dairy Foods recorded a restructuring
charge of $1.0 million which represented severance costs for 44 employees as a
result of closing a facility in the Upper Midwest and recorded $0.6 million for
the planned closure of another facility. Feed recorded a restructuring charge of
$0.6 million which represented severance costs related to closing feed plants,
and Seed recorded a restructuring charge of $0.3 million for severance costs
related to closing a facility.

    For the three months ended June 30, 2002, the Company recorded restructuring
charges of $1.7 million. Of this amount, Dairy Foods recorded a restructuring
charge of $1.6 million which represented severance and outplacement



                                       9
<PAGE>

costs for 82 employees for the Faribault, MN plant closure. Feed recorded a
restructuring charge of $0.1 million which represented severance costs related
to closing feed plants.

    For the six months ended June 30, 2002, the Company recorded restructuring
charges of $4.4 million. Of this amount, Feed recorded a restructuring charge of
$2.8 million which represented severance and outplacement costs for 136
employees at the Ft. Dodge, IA office facility and other feed plant facilities
and Dairy Foods recorded a restructuring charge of $1.6 million which
represented severance and outplacement costs for 82 employees for the Faribault,
MN plant closure.

    A summary of restructuring activities and resulting reserve for the six
months ended June 30, 2003 is as follows:

<Table>
<Caption>
                                          BALANCE                                             BALANCE
                                        DECEMBER 31,       CHARGE TO         UTILIZED         JUNE 30,
                                            2002            EXPENSE          IN 2003            2003
                                        ------------     ------------     ------------      ------------
<S>                                     <C>              <C>              <C>               <C>

     Termination benefits .........     $      8,871     $      2,525     $     (8,071)     $      3,325
     Other ........................            1,604               --             (492)            1,112
                                        ------------     ------------     ------------      ------------
     Total ........................     $     10,475     $      2,525     $     (8,563)     $      4,437
                                        ============     ============     ============      ============
</Table>

IMPAIRMENT CHARGES

    For the three months ended June 30, 2003 the Company recorded impairment
charges of $0.3 million in the Seed segment for the impairment of certain
assets. For the six months ended June 30, 2003 the Company recorded impairment
charges of $0.3 million in the Seed segment and $0.1 million in the Feed segment
for write downs of certain plant assets to their estimated fair value.

    For the three months ended June 30, 2002 the Company recorded an impairment
charge of $2.2 million which was made up of a $1.3 million write-down of the
Faribault, MN plant and $0.9 million represented a write-down of certain feed
plant assets to their estimated fair value. For the six months ended June 30,
2002 the Company recorded an impairment charge of $2.9 million which was made up
of a $1.3 million write-down of the Faribault, MN plant and $1.6 million
represented a write-down of certain feed plant assets to their estimated fair
value.

9. GAIN ON LEGAL SETTLEMENTS

    During the six months ended June 30, 2003 and 2002, the Company recognized
gains on legal settlements of $19.2 million and $32.7 million, respectively, of
which $10.3 million was recognized in the three months ended June 30, 2003, and
$32.7 million was recognized in the three months ended June 30, 2002. The gains
represent cash received from product suppliers against whom the Company alleged
certain price-fixing claims.

10. GAIN ON SALE OF INTANGIBLES

    In the six months ended June 30, 2003, the Company recorded a $0.6 million
gain on the sale of a customer list relating to the divestiture of a joint
venture in Taiwan. In the six months ended June 30, 2002, the Company recorded a
$4.2 million gain on the sale of a customer list pertaining to the feed
phosphate distribution business.

11. LOSS (GAIN) ON DIVESTITURE OF BUSINESSES

    For the six months ended June 30, 2003, the Company recorded a loss of $0.7
million on the divestiture of a Feed business in Taiwan. For the six months
ended June 30, 2002, the Company recorded a gain of $1.2 million primarily on
the divestiture of a Dairy Foods Poland business.

12. GAIN ON SALE OF INVESTMENT

    For the three and six months ended June 30, 2003, the Company recorded gains
of $0.3 million and $0.8 million, respectively, on the sale of a Feed investment
in a swine joint venture.



                                       10
<PAGE>

13. DEBT OBLIGATIONS

    In the six months ended June 30, 2003, the Company made payments on Term A
loan of $45.1 million and Term B loan of $26.5 million, of which $50.0 million
was a voluntary prepayment. The weighted average interest rates on short-term
borrowings and notes outstanding at June 30, 2003 and December 31, 2002 were
3.44% and 3.51%, respectively.

14. SEGMENT INFORMATION

    The Company operates in five segments: Dairy Foods, Animal Feed, Crop Seed,
Swine and Agronomy.

    The Dairy Foods segment produces, markets and sells products such as butter,
spreads, cheese, and other dairy related products. Products are sold under
well-recognized national brand names including LAND O LAKES, the Indian Maiden
logo and Alpine Lace, as well as under regional brand names such as New Yorker.

    The Animal Feed segment is made up of a 92% ownership position in Land
O'Lakes Farmland Feed LLC ("Land O'Lakes Farmland Feed"). Land O'Lakes Farmland
Feed develops, produces, markets and distributes animal feeds such as ingredient
feed, formula feed, milk replacers, vitamins and additives.

    The Crop Seed segment is a supplier and distributor of crop seed products in
the United States. A variety of crop seed is sold, including alfalfa, soybeans,
corn, forage and turf grasses.

    The Swine segment has three programs: farrow-to-finish, swine aligned and
cost-plus. The farrow-to-finish program produces and sells market hogs. The
swine aligned program raises feeder pigs which are sold to local member
cooperatives. The cost-plus program provides minimum hog price guarantees to
producers in exchange for swine feed sales and profit participation.

    The Agronomy segment consists primarily of the Company's 50% ownership in
Agriliance LLC ("Agriliance"), which is accounted for under the equity method.
Agriliance markets and sells two primary product lines: crop protection
(including herbicides and pesticides) and crop nutrients (including fertilizers
and micronutrients).

    The Company allocates corporate administration expense to all of its
business segments, both directly and indirectly. Corporate staff functions that
are able to determine actual services provided to each segment allocate expense
on a direct and predetermined basis. All other corporate staff functions
allocate expense indirectly based on each segment's percent of total invested
capital. A majority of corporate administration expense is allocated directly.


                                       11
<PAGE>

<Table>
<Caption>
                                    DAIRY FOODS      FEED          SEED          SWINE       AGRONOMY        OTHER      CONSOLIDATED
                                    -----------   -----------   -----------   -----------   -----------   -----------   ------------
<S>                                 <C>           <C>           <C>           <C>           <C>           <C>           <C>
FOR THE THREE MONTHS ENDED
JUNE 30, 2003
  Net sales ......................  $   665,294   $   593,687   $   111,097   $    22,501   $        --   $     3,464   $ 1,396,043
  Cost of sales ..................      626,143       526,641        95,441        21,045            --         1,850     1,271,120
  Selling, general and
    administration ...............       33,121        59,931         9,746         1,327         3,357         2,778       110,260
  Restructuring and impairment
    charges ......................          600           615           560            --            --            --         1,775
  Interest expense, net ..........        7,727         4,176           331         1,351         2,410           896        16,891
  Gain on legal settlements ......          (38)      (10,250)           --            --            --            --       (10,288)
  Gain on sale of intangible .....           --          (550)           --            --            --            --          (550)
  Loss on divestiture of business            --           700            --            --            --            --           700
  Gain on sale of investment .....           --          (346)           --            --            --            --          (346)
  Equity in earnings of affiliated
    companies ....................       (1,760)         (176)           --           (75)      (47,784)       (1,619)      (51,414)
  Minority interest in earnings
    of subsidiaries ..............           --         1,427            --            --            --            --         1,427
                                    -----------   -----------   -----------   -----------   -----------   -----------   -----------
  (Loss) earnings before income
    taxes ........................  $      (499)  $    11,519   $     5,019   $    (1,147)  $    42,017   $      (441)  $    56,468
                                    ===========   ===========   ===========   ===========   ===========   ===========   ===========

FOR THE THREE MONTHS ENDED
JUNE 30, 2002
  Net sales ......................  $   710,302   $   587,160   $    97,189   $    21,814   $        --   $     3,304   $ 1,419,769
  Cost of sales ..................      671,966       516,918        83,087        22,111            --         1,784     1,295,866
  Selling, general and
    administration ...............       40,135        63,733        10,180         1,568         5,941         2,636       124,193
  Restructuring and impairment
    charges ......................        2,800         1,041            --            --            --            --         3,841
  Interest expense, net ..........        5,437         7,071           743         1,252         2,211           687        17,401
  Gain on legal settlements ......         (828)      (31,871)           --            --            --            --       (32,699)
  (Gain) loss on divestiture of
    businesses ...................       (1,281)           --            --            --            --            76        (1,205)
  Equity in (earnings) loss of
    affiliated companies .........         (467)         (110)         (201)          365       (49,172)        5,358       (44,227)
  Minority interest in (loss)
    earnings of subsidiaries .....       (2,032)          971            --            --            --            37        (1,024)
                                    -----------   -----------   -----------   -----------   -----------   -----------   -----------
  (Loss) earnings before income
    taxes ........................  $    (5,428)  $    29,407   $     3,380   $    (3,482)  $    41,020   $    (7,274)  $    57,623
                                    ===========   ===========   ===========   ===========   ===========   ===========   ===========
</Table>

<Table>
<Caption>
                                    DAIRY FOODS      FEED          SEED          SWINE       AGRONOMY        OTHER      CONSOLIDATED
                                    -----------   -----------   -----------   -----------   -----------   -----------   ------------
<S>                                 <C>           <C>           <C>           <C>           <C>           <C>           <C>
FOR THE SIX MONTHS ENDED
JUNE 30, 2003
  Net sales ......................  $ 1,301,238   $ 1,196,153   $   302,992   $    43,666   $        --   $     6,446   $ 2,850,495
  Cost of sales ..................    1,234,249     1,056,570       262,275        43,281            --         3,648     2,600,023
  Selling, general and
    administration ...............       72,583       119,900        23,139         2,689         6,683         5,235       230,229
  Restructuring and impairment
    charges ......................        1,600           707           560            --            --            --         2,867
  Interest expense, net ..........       14,049         9,965         1,377         2,624         4,742         1,519        34,276
  Gain on legal settlements ......          (38)      (19,139)           --            --            --            --       (19,177)
  Gain on sale of intangible .....           --          (550)           --            --            --            --          (550)
  Loss on divestiture of business            --           700            --            --            --            --           700
  Gain on sale of investment .....           --          (846)           --            --            --            --          (846)
  Equity in (earnings) loss of
    affiliated companies .........       (1,130)         (732)           --           290       (44,637)       (4,222)      (50,431)
  Minority interest in earnings
    of subsidiaries ..............           --         2,916            --            --            --            --         2,916
                                    -----------   -----------   -----------   -----------   -----------   -----------   -----------
  (Loss) earnings before income
    taxes ........................  $   (20,075)  $    26,662   $    15,641   $    (5,218)  $    33,212   $       266   $    50,488
                                    ===========   ===========   ===========   ===========   ===========   ===========   ===========

FOR THE SIX MONTHS ENDED
JUNE 30, 2002
  Net sales ......................  $ 1,441,430   $ 1,205,723   $   252,892   $    45,694   $        --   $     6,263   $ 2,952,002
  Cost of sales ..................    1,358,029     1,061,414       213,655        43,628            --         3,398     2,680,124
  Selling, general and
    administration ...............       84,676       126,050        23,157         3,229         9,488         5,114       251,714
  Restructuring and impairment
    charges ......................        2,800         4,476            --            --            --            --         7,276
  Interest expense, net ..........        9,795        15,100         1,716         2,637         4,298         1,402        34,948
  Gain on legal settlements ......         (828)      (31,871)           --            --            --            --       (32,699)
  Gain on sale of intangible .....           --        (4,184)           --            --            --            --        (4,184)
  (Gain) loss on divestiture of
    businesses ...................       (1,281)           --            --            --            --            76        (1,205)
  Equity in loss (earnings) of
    affiliated companies .........           63          (568)         (105)          204       (39,366)        5,406       (34,366)
  Minority interest in (loss)
    earnings of subsidiaries .....       (2,569)        2,370            --            --            --           109           (90)
                                    -----------   -----------   -----------   -----------   -----------   -----------   -----------
  (Loss) earnings before income
    taxes ........................  $    (9,255)  $    32,936   $    14,469   $    (4,004)  $    25,580   $    (9,242)  $    50,484
                                    ===========   ===========   ===========   ===========   ===========   ===========   ===========
</Table>



                                       12
<PAGE>

15. CONSOLIDATING FINANCIAL INFORMATION

    The Company has entered into financing arrangements which are guaranteed by
the Company and certain of its wholly-owned and majority-owned subsidiaries and
limited liability companies (the "Guarantor Subsidiaries"). Such guarantees are
full, unconditional and joint and several.

    The following supplemental financial information sets forth, on an
unconsolidated basis, balance sheet, statement of operations and cash flow
information for the Company, Guarantor Subsidiaries and the Company's other
subsidiaries (the "Non-Guarantor Subsidiaries"). The supplemental financial
information reflects the investments of the Company in the Guarantor and
Non-Guarantor Subsidiaries using the equity method of accounting.




                                       13
<PAGE>

                               LAND O'LAKES, INC.

                    SUPPLEMENTAL CONSOLIDATING BALANCE SHEET
                                  JUNE 30, 2003

<Table>
<Caption>
                                         LAND
                                        O'LAKES,     WHOLLY-      MAJORITY-
                                          INC.        OWNED         OWNED
                                         PARENT    CONSOLIDATED  CONSOLIDATED   NON-GUARANTOR
                                        COMPANY     GUARANTORS    GUARANTORS    SUBSIDIARIES    ELIMINATIONS   CONSOLIDATED
                                      ----------- -------------  ------------   -------------   ------------   ------------
<S>                                   <C>         <C>            <C>            <C>             <C>            <C>
                                                         (UNAUDITED)

                                                           ASSETS
Current assets:
  Cash and short-term investments .   $    79,315   $     2,824   $      (620)   $     3,961    $        --    $    85,480
  Restricted cash .................        20,000            --            --             --             --         20,000
  Receivables, net ................       370,024        17,484       144,153         48,959       (187,764)       392,856
  Inventories .....................       307,592        55,345       111,941         10,220             --        485,098
  Prepaid expenses ................        30,543         3,262         8,263            800             --         42,868
  Other current assets ............        41,881         1,191            --            673             --         43,745
                                      -----------   -----------   -----------    -----------    -----------    -----------
       Total current assets .......       849,355        80,106       263,737         64,613       (187,764)     1,070,047

Investments .......................     1,256,891           223        19,236          2,063       (679,952)       598,461
Property, plant and equipment,
  net .............................       255,009        21,059       236,319         50,698             --        563,085
Property under capital lease ......            --            --            --        101,388             --        101,388
Goodwill, net .....................       190,067         3,224       122,038            216             --        315,545
Other intangibles .................         4,979           670        96,277          1,094             --        103,020
Other assets ......................       147,498         1,225        26,967         47,467        (19,100)       204,057
                                      -----------   -----------   -----------    -----------    -----------    -----------
       Total assets ...............   $ 2,703,799   $   106,507   $   764,574    $   267,539    $  (886,816)   $ 2,955,603
                                      ===========   ===========   ===========    ===========    ===========    ===========

                                                  LIABILITIES AND EQUITIES
Current liabilities:
  Notes and short-term
     obligations ..................   $       721   $     2,872   $       725    $    77,709    $   (29,889)   $    52,138
  Current portion of long-term
     debt .........................        65,797        61,335            --             --        (61,318)        65,814
  Current portion of obligation
     under capital lease ..........            --            --            --          8,867             --          8,867
  Accounts payable ................       389,095        16,620        80,246         13,515        (96,745)       402,731
  Accrued expenses ................       191,722         2,580        33,341          3,071         (9,292)       221,422
  Patronage refunds and other
    member equities payable .......        10,770            --            --             --             --         10,770
                                      -----------   -----------   -----------    -----------    -----------    -----------
       Total current liabilities ..       658,105        83,407       114,312        103,162       (197,244)       761,742

Long-term debt ....................       957,075        10,160            --         15,365         (9,620)       972,980
Obligation under capital lease ....            --            --            --         94,808             --         94,808
Employee benefits and other
  liabilities .....................        76,503            59        26,586          1,062             --        104,210
Deferred tax liability ............        26,641         1,263            --              3             --         27,907
Minority interests ................        51,579            --         2,938          5,543             --         60,060
Equities:
  Capital stock ...................         2,147           966       508,035         73,847       (582,848)         2,147
  Member equities .................       872,972            --            --             --             --        872,972
  Retained earnings ...............        58,777        10,652       112,703        (26,251)       (97,104)        58,777
                                      -----------   -----------   -----------    -----------    -----------    -----------
       Total equities .............       933,896        11,618       620,738         47,596       (679,952)       933,896
                                      -----------   -----------   -----------    -----------    -----------    -----------
Commitments and contingencies

Total liabilities and
  equities ........................   $ 2,703,799   $   106,507   $   764,574    $   267,539    $  (886,816)   $ 2,955,603
                                      ===========   ===========   ===========    ===========    ===========    ===========
</Table>



                                       14
<PAGE>

                               LAND O'LAKES, INC.

               SUPPLEMENTAL CONSOLIDATING STATEMENT OF OPERATIONS
                    FOR THE THREE MONTHS ENDED JUNE 30, 2003

<Table>
<Caption>
                                             LAND
                                            O'LAKES,       WHOLLY-        MAJORITY-
                                              INC.          OWNED          OWNED
                                             PARENT      CONSOLIDATED   CONSOLIDATED   NON-GUARANTOR
                                             COMPANY      GUARANTORS     GUARANTORS    SUBSIDIARIES    ELIMINATIONS   CONSOLIDATED
                                           -----------   ------------   ------------   -------------   ------------   ------------
                                                                (UNAUDITED)
<S>                                        <C>           <C>            <C>            <C>            <C>            <C>

Net sales ..............................   $   736,672    $    43,764    $   579,566    $    36,041    $        --    $ 1,396,043
Cost of sales ..........................       671,221         42,484        515,107         42,308             --      1,271,120
                                           -----------    -----------    -----------    -----------    -----------    -----------
Gross profit ...........................        65,451          1,280         64,459         (6,267)            --        124,923

Selling, general and administration ....        50,807          3,288         57,805         (1,640)            --        110,260
Restructuring and impairment charges ...           600            560            615             --             --          1,775
                                           -----------    -----------    -----------    -----------    -----------    -----------

Earnings (loss) from operations ........        14,044         (2,568)         6,039         (4,627)            --         12,888

Interest expense (income), net .........        17,399            674         (2,153)           971             --         16,891
Gain on legal settlements ..............        (8,154)            --         (2,134)            --             --        (10,288)
Gain on sale of intangible .............            --             --             --           (550)            --           (550)
Loss on divestiture of business ........           700             --             --             --             --            700
Gain on sale of investment .............            --             --           (346)            --             --           (346)
Equity in (earnings) loss of
  affiliated companies .................       (55,702)            --             (9)            --          4,297        (51,414)
Minority interest in earnings of
  of subsidiaries ......................           868             --            375            184             --          1,427
                                           -----------    -----------    -----------    -----------    -----------    -----------
Earnings (loss) before income taxes ....        58,933         (3,242)        10,306         (5,232)        (4,297)        56,468
Income tax  expense (benefit) ..........        14,252           (203)          (162)        (2,100)            --         11,787
                                           -----------    -----------    -----------    -----------    -----------    -----------
Net earnings (loss) ....................   $    44,681    $    (3,039)   $    10,468    $    (3,132)   $    (4,297)   $    44,681
                                           ===========    ===========    ===========    ===========    ===========    ===========
</Table>


                                       15
<PAGE>

                               LAND O'LAKES, INC.

               SUPPLEMENTAL CONSOLIDATING STATEMENT OF OPERATIONS
                     FOR THE SIX MONTHS ENDED JUNE 30, 2003

<Table>
<Caption>
                                              LAND
                                             O'LAKES,       WHOLLY-       MAJORITY-
                                               INC.          OWNED          OWNED
                                              PARENT      CONSOLIDATED   CONSOLIDATED  NON-GUARANTOR
                                             COMPANY       GUARANTORS     GUARANTORS    SUBSIDIARIES   ELIMINATIONS   CONSOLIDATED
                                           -----------    ------------   ------------  -------------   ------------   ------------
                                                                  (UNAUDITED)
<S>                                        <C>            <C>            <C>           <C>             <C>            <C>

Net sales ..............................   $ 1,514,072    $    98,702    $ 1,169,051    $    68,670    $        --    $ 2,850,495
Cost of sales ..........................     1,396,792         93,326      1,033,781         76,124             --      2,600,023
                                           -----------    -----------    -----------    -----------    -----------    -----------
Gross profit ...........................       117,280          5,376        135,270         (7,454)            --        250,472

Selling, general and administration ....       105,254          6,449        115,550          2,976             --        230,229
Restructuring and impairment charges ...         1,600            560            707             --             --          2,867
                                           -----------    -----------    -----------    -----------    -----------    -----------

Earnings (loss) from operations ........        10,426         (1,633)        19,013        (10,430)            --         17,376

Interest expense (income), net .........        35,570          1,341         (3,280)           645             --         34,276
Gain on legal settlements ..............       (16,175)            --         (3,002)            --             --        (19,177)
Gain on sale of intangible .............            --             --             --           (550)            --           (550)
Loss on divestiture of business ........           700             --             --             --             --            700
Gain on sale of investment .............            --             --           (846)            --             --           (846)
Equity in (earnings) loss of
  affiliated companies .................       (66,650)            --           (556)            --         16,775        (50,431)
Minority interest in earnings of
  subsidiaries .........................         2,177             --            371            368             --          2,916
                                           -----------    -----------    -----------    -----------    -----------    -----------
Earnings (loss) before income taxes ....        54,804         (2,974)        26,326        (10,893)       (16,775)        50,488
Income tax expense (benefit) ...........        10,494             79             --         (4,395)            --          6,178
                                           -----------    -----------    -----------    -----------    -----------    -----------
Net earnings (loss) ....................   $    44,310    $    (3,053)   $    26,326    $    (6,498)   $   (16,775)   $    44,310
                                           ===========    ===========    ===========    ===========    ===========    ===========
</Table>



                                       16
<PAGE>

                               LAND O'LAKES, INC.

               SUPPLEMENTAL CONSOLIDATING STATEMENT OF CASH FLOWS
                     FOR THE SIX MONTHS ENDED JUNE 30, 2003

<Table>
<Caption>
                                                   LAND
                                                  O'LAKES,     WHOLLY-       MAJORITY-
                                                    INC.        OWNED          OWNED
                                                   PARENT    CONSOLIDATED   CONSOLIDATED  NON-GUARANTOR
                                                  COMPANY     GUARANTORS     GUARANTORS    SUBSIDIARIES ELIMINATIONS   CONSOLIDATED
                                                -----------  ------------   ------------  ------------- ------------   ------------
                                                                   (UNAUDITED)
<S>                                             <C>          <C>            <C>           <C>           <C>            <C>

CASH FLOWS FROM OPERATING
  ACTIVITIES:
  Net earnings (loss) ........................  $    44,310  $    (3,053)   $    26,326    $    (6,498) $   (16,775)   $    44,310
  Adjustments to reconcile net earnings
    (loss) to net cash provided (used)
    by operating activities:
      Depreciation and amortization ..........       28,749        1,502         19,881          3,872           --         54,004
      Amortization of deferred financing
        charges ..............................        1,846           --             --             --           --          1,846
      Bad debt expense .......................          621           --          1,139             --           --          1,760
      Proceeds from patronage revolvement
        received .............................        1,316           --             --             --           --          1,316
      Non-cash patronage income ..............       (1,222)          --             --             --           --         (1,222)
      Receivable from legal settlement .......       90,707           --          6,000             --           --         96,707
      Decrease (increase) in other assets ....       33,665       11,514           (520)        (2,566)     (33,791)         8,302
      Increase (decrease) in other
        liabilities ..........................        1,974          (11)        (1,810)          (283)          --           (130)
      Restructuring and impairment
        charges ..............................        1,600          560            707             --           --          2,867
      Loss on divestiture of business ........          700           --             --             --           --            700
      Equity in (earnings) loss of
        affiliated companies .................      (66,650)          --           (556)            --       16,775        (50,431)
      Minority interest ......................        2,177           --            371            368           --          2,916
      Other ..................................       (4,789)         879         (1,606)         1,325           --         (4,191)
  Changes in current assets and
    liabilities, net of acquisitions
    and divestitures:
      Receivables ............................       35,177       12,573         66,772         (3,583)      57,302        168,241
      Inventories ............................      (53,734)      19,052         (1,658)        (1,241)          --        (37,581)
      Other current assets ...................      148,871          724          1,263           (560)          --        150,298
      Accounts payable .......................     (114,289)     (51,709)       (39,242)        (5,038)     (90,235)      (300,513)
      Accrued expenses .......................       34,774          936        (16,033)        (1,455)      (4,067)        14,155
                                                -----------  -----------    -----------    -----------  -----------    -----------
  Net cash provided (used) by operating
    activities ...............................      185,803       (7,033)        61,034        (15,659)     (70,791)       153,354

CASH FLOWS FROM INVESTING
  ACTIVITIES:
  Additions to property, plant and
    equipment ................................      (23,517)        (499)        (9,257)        (1,681)          --        (34,954)
  Payments for investments ...................       (9,675)          --             --             --           --         (9,675)
  Proceeds from divestiture of business ......          465           --             --             --           --            465
  Proceeds from sale of investments ..........           --           --          3,000             --           --          3,000
  Proceeds from sale of property, plant
    and equipment ............................        3,081        1,069          2,157          1,708           --          8,015
  Dividends from investments in
    affiliated companies .....................        2,798           --             --             --           --          2,798
  Increase in restricted cash ................      (20,000)          --             --             --           --        (20,000)
  Other ......................................          440           --          2,540             --           --          2,980
                                                -----------  -----------    -----------    -----------  -----------    -----------
  Net cash (used) provided by investing
    activities ...............................      (46,408)         570         (1,560)            27           --        (47,371)

CASH FLOWS FROM FINANCING
  ACTIVITIES:
  (Decrease) increase in short-term
    debt .....................................      (26,417)      (3,574)           963         11,488       31,849         14,309
  Proceeds from issuance of long-term
    debt .....................................        1,202           --             --             --           --          1,202
  Payments on principal of long-term
    debt .....................................      (70,345)         (37)       (59,588)        (2,658)      59,576        (73,052)
  Payments on principal of capital
    lease obligation .........................           --           --             --         (4,435)          --         (4,435)
  Payments for redemption of member
    equities .................................      (23,662)          --             --             --           --        (23,662)
  Other ......................................          808       10,314             (8)        10,328      (20,634)           808
                                                -----------  -----------    -----------    -----------  -----------    -----------
  Net cash (used) provided by financing
    activities ...............................     (118,414)       6,703        (58,633)        14,723       70,791        (84,830)
                                                -----------  -----------    -----------    -----------  -----------    -----------
  Net increase (decrease) in cash and
    short-term investment ....................       20,981          240            841           (909)          --         21,153
Cash and short-term investments at
    beginning of period ......................       58,334        2,584         (1,461)         4,870           --         64,327
                                                -----------  -----------    -----------    -----------  -----------    -----------
Cash and short-term investments at end
    of period ................................  $    79,315  $     2,824    $      (620)   $     3,961  $        --    $    85,480
                                                ===========  ===========    ===========    ===========  ===========    ===========

</Table>



                                       17
<PAGE>

                               LAND O'LAKES, INC.

                    SUPPLEMENTAL CONSOLIDATING BALANCE SHEET
                                DECEMBER 31, 2002

<Table>
<Caption>
                                              LAND
                                             O'LAKES,       WHOLLY-       MAJORITY-
                                               INC.          OWNED          OWNED
                                              PARENT      CONSOLIDATED   CONSOLIDATED  NON-GUARANTOR
                                             COMPANY       GUARANTORS     GUARANTORS    SUBSIDIARIES   ELIMINATIONS   CONSOLIDATED
                                           -----------    ------------   ------------  -------------   ------------   ------------
                                                                  (UNAUDITED)
<S>                                        <C>            <C>            <C>           <C>             <C>            <C>

                                                                    ASSETS
Current assets:
  Cash and short-term investments ......   $    58,334   $     2,584   $    (1,461)   $     4,870    $        --    $    64,327
  Receivables, net .....................       472,165        30,057       150,447         45,377       (130,462)       567,584
  Receivable from legal settlement .....        90,707            --         6,000             --             --         96,707
  Inventories ..........................       254,517        74,397       108,493          8,979             --        446,386
  Prepaid expenses .....................       176,541         4,840         7,625            240             --        189,246
  Other current assets .................        12,868           337            --            673             --         13,878
                                           -----------   -----------   -----------    -----------    -----------    -----------
       Total current assets ............     1,065,132       112,215       271,104         60,139       (130,462)     1,378,128

Investments ............................     1,163,031         1,102        20,777          2,496       (641,814)       545,592
Property, plant and equipment, net .....       260,078        23,131       246,402         50,249             --        579,860
Property under capital lease ...........            --            --            --        105,736             --        105,736
Goodwill, net ..........................       187,755        13,172       121,673            813             --        323,413
Other intangibles ......................         4,243           723        96,455            349             --        101,770
Other assets ...........................       150,909         2,738        27,064         45,049        (13,937)       211,823
                                           -----------   -----------   -----------    -----------    -----------    -----------
       Total assets ....................   $ 2,831,148   $   153,081   $   783,475    $   264,831    $  (786,213)   $ 3,246,322
                                           ===========   ===========   ===========    ===========    ===========    ===========

                                                               LIABILITIES AND EQUITIES
Current liabilities:
  Notes and short-term obligations .....   $    27,040   $     2,818   $        59    $    66,174    $   (58,262)   $    37,829
  Current portion of long-term debt ....       104,347        64,963            --             47        (64,794)       104,563
  Obligation under capital lease .......            --            --            --        108,279             --        108,279
  Accounts payable .....................       503,851        68,329       117,563         18,553         (6,510)       701,786
  Accrued expenses .....................       158,323         1,644        45,361          4,526         (5,225)       204,629
  Patronage refunds and other
    member equities payable ............        12,388            --            --             --             --         12,388
                                           -----------   -----------   -----------    -----------    -----------    -----------
       Total current liabilities .......       805,949       137,754       162,983        197,579       (134,791)     1,169,474

Long-term debt .........................       988,696        10,197            --         18,023         (9,608)     1,007,308
Employee benefits and other
  liabilities ..........................        75,588         1,333        26,071          1,348             --        104,340
Minority interests .....................        49,402            --            --          4,285             --         53,687
Equities:
  Capital stock ........................         2,190         1,084       507,956         61,123       (570,163)         2,190
  Member equities ......................       873,659            --            --             --             --        873,659
  Retained earnings ....................        35,664         2,713        86,465        (17,527)       (71,651)        35,664
                                           -----------   -----------   -----------    -----------    -----------    -----------
       Total equities ..................       911,513         3,797       594,421         43,596       (641,814)       911,513
                                           -----------   -----------   -----------    -----------    -----------    -----------
Commitments and contingencies

Total liabilities and equities .........   $ 2,831,148   $   153,081   $   783,475    $   264,831    $  (786,213)   $ 3,246,322
                                           ===========   ===========   ===========    ===========    ===========    ===========
</Table>



                                       18
<PAGE>

                               LAND O'LAKES, INC.

               SUPPLEMENTAL CONSOLIDATING STATEMENT OF OPERATIONS
                    FOR THE THREE MONTHS ENDED JUNE 30, 2002

<Table>
<Caption>
                                              LAND
                                             O'LAKES,       WHOLLY-       MAJORITY-
                                               INC.          OWNED          OWNED
                                              PARENT      CONSOLIDATED   CONSOLIDATED  NON-GUARANTOR
                                             COMPANY       GUARANTORS     GUARANTORS    SUBSIDIARIES   ELIMINATIONS   CONSOLIDATED
                                           -----------    ------------   ------------  -------------   ------------   ------------
                                                                  (UNAUDITED)
<S>                                        <C>            <C>            <C>           <C>             <C>            <C>

Net sales ..............................   $   780,706    $    53,935    $   562,755    $    22,373    $        --    $ 1,419,769
Cost of sales ..........................       738,367         36,210        494,064         27,225             --      1,295,866
                                           -----------    -----------    -----------    -----------    -----------    -----------
Gross profit ...........................        42,339         17,725         68,691         (4,852)            --        123,903

Selling, general and administration ....        48,102         16,661         60,055           (625)            --        124,193
Restructuring and impairment charges ...         2,800             --          1,041             --             --          3,841
                                           -----------    -----------    -----------    -----------    -----------    -----------
(Loss) earnings from operations ........        (8,563)         1,064          7,595         (4,227)            --         (4,131)

Interest expense (income), net .........        17,162          1,039           (646)          (154)            --         17,401
Gain on legal settlements ..............       (32,699)            --             --             --             --        (32,699)
Loss (gain) on divestiture of
  businesses............................           364             --             --         (1,569)            --         (1,205)
Equity in (earnings) loss of
  affiliated companies .................       (48,890)            --            (33)            --          4,696        (44,227)
Minority interest in (loss)
  earnings of subsidiaries .............        (1,886)            --            122            740             --         (1,024)
                                           -----------    -----------    -----------    -----------    -----------    -----------
Earnings (loss) before income taxes ....        57,386             25          8,152         (3,244)        (4,696)        57,623
Income tax expense (benefit) ...........         9,090            181            (94)           150             --          9,327
                                           -----------    -----------    -----------    -----------    -----------    -----------
Net earnings (loss) ....................   $    48,296    $      (156)   $     8,246    $    (3,394)   $    (4,696)   $    48,296
                                           ===========    ===========    ===========    ===========    ===========    ===========
</Table>



                                       19
<PAGE>

                               LAND O'LAKES, INC.

               SUPPLEMENTAL CONSOLIDATING STATEMENT OF OPERATIONS
                     FOR THE SIX MONTHS ENDED JUNE 30, 2002

<Table>
<Caption>
                                              LAND
                                             O'LAKES,       WHOLLY-       MAJORITY-
                                               INC.          OWNED          OWNED
                                              PARENT      CONSOLIDATED   CONSOLIDATED  NON-GUARANTOR
                                             COMPANY       GUARANTORS     GUARANTORS    SUBSIDIARIES   ELIMINATIONS   CONSOLIDATED
                                           -----------    ------------   ------------  -------------   ------------   ------------
                                                                  (UNAUDITED)
<S>                                        <C>            <C>            <C>           <C>             <C>            <C>

Net sales ..............................   $ 1,645,505    $   103,901    $ 1,152,708    $    49,888    $        --    $ 2,952,002
Cost of sales ..........................     1,535,444         80,053      1,012,202         52,425             --      2,680,124
                                           -----------    -----------    -----------    -----------    -----------    -----------
Gross profit ...........................       110,061         23,848        140,506         (2,537)            --        271,878

Selling, general and administration ....       106,434         22,783        118,887          3,610             --        251,714
Restructuring and impairment
  charges ..............................         2,800             --          4,476             --             --          7,276
                                           -----------    -----------    -----------    -----------    -----------    -----------
Earnings (loss) from operations ........           827          1,065         17,143         (6,147)            --         12,888

Interest expense (income), net .........        34,573          2,032         (1,439)          (218)            --         34,948
Gain on legal settlements ..............       (32,699)            --             --             --             --        (32,699)
Gain on sale of intangible .............            --             --         (4,184)            --             --         (4,184)
Loss (gain) on divestiture of
  businesses ...........................           364             --             --         (1,569)            --         (1,205)
Equity in (earnings) loss of
  affiliated companies .................       (50,652)            --           (236)            --         16,522        (34,366)
Minority interest in (loss)
  earnings of subsidiaries .............          (716)            --            308            318             --            (90)
                                           -----------    -----------    -----------    -----------    -----------    -----------
Earnings (loss) before income taxes ....        49,957           (967)        22,694         (4,678)       (16,522)        50,484
Income tax expense (benefit) ...........         2,637            413           (496)           610             --          3,164
                                           -----------    -----------    -----------    -----------    -----------    -----------
Net earnings (loss) ....................   $    47,320    $    (1,380)   $    23,190    $    (5,288)   $   (16,522)   $    47,320
                                           ===========    ===========    ===========    ===========    ===========    ===========
</Table>



                                       20
<PAGE>

                               LAND O'LAKES, INC.

               SUPPLEMENTAL CONSOLIDATING STATEMENT OF CASH FLOWS
                     FOR THE SIX MONTHS ENDED JUNE 30, 2002

<Table>
<Caption>
                                                LAND
                                               O'LAKES,       WHOLLY-       MAJORITY-
                                                 INC.          OWNED          OWNED
                                                PARENT      CONSOLIDATED   CONSOLIDATED  NON-GUARANTOR
                                               COMPANY       GUARANTORS     GUARANTORS    SUBSIDIARIES   ELIMINATIONS   CONSOLIDATED
                                             -----------    ------------   ------------  -------------   ------------   ------------
                                                                    (UNAUDITED)
<S>                                          <C>            <C>            <C>           <C>             <C>            <C>

CASH FLOWS FROM OPERATING ACTIVITIES:
  Net earnings (loss) ....................   $    47,320    $    (1,380)   $    23,190    $    (5,288)   $   (16,522)   $    47,320
  Adjustments to reconcile net earnings
    (loss) to net cash provided (used)
    by operating activities:
      Depreciation and amortization ......        25,231          1,920         23,728          1,568             --         52,447
      Amortization of deferred financing
        charges ..........................         1,587             --             --             --             --          1,587
      Bad debt expense ...................           786             --          1,850             --             --          2,636
      Proceeds from patronage revolvement
        received .........................           261             --             --             --             --            261
      Non-cash patronage income ..........          (203)            --             --             --             --           (203)
      (Increase) decrease in other assets        (20,620)         1,251         (5,115)         6,952         (5,804)       (23,336)
      Increase (decrease) in other
        liabilities ......................        28,465           (153)        (2,448)            (1)            --         25,863
      Restructuring and impairment
        charges ..........................         2,800             --          4,476             --             --          7,276
      Loss (gain) on divestiture of
        businesses .......................           364             --             --         (1,569)            --         (1,205)
      Equity in (earnings) loss of
        affiliated companies .............       (50,652)            --           (236)            --         16,522        (34,366)
      Minority interest ..................          (716)            --            308            318             --            (90)
      Other ..............................          (842)            --             66         (1,365)            --         (2,141)
  Changes in current assets and
    liabilities, net of acquisitions
    and divestitures:
      Receivables ........................       110,673         (1,733)        21,783         (7,422)       (15,885)       107,416
      Inventories ........................       (52,411)        (7,454)         1,198          1,399             --        (57,268)
      Other current assets ...............        84,003          5,799            969            (52)            --         90,719
      Accounts payable ...................      (166,303)         2,621        (23,323)         1,463        (10,922)      (196,464)
      Accrued expenses ...................        20,794         (4,891)        (6,199)            (4)            --          9,700
                                             -----------    -----------    -----------    -----------    -----------    -----------
  Net cash provided (used) by
    operating activities .................        30,537         (4,020)        40,247         (4,001)       (32,611)        30,152

CASH FLOWS FROM INVESTING ACTIVITIES:
  Additions to property, plant and
    equipment ............................       (22,756)          (995)        (8,464)        (2,626)            --        (34,841)
  Payments for investments ...............        (4,665)            (4)            --             --             --         (4,669)
  Proceeds from divestiture of
    businesses ...........................         1,710             --             --             --             --          1,710
  Proceeds from sale of investment .......        20,003             --          1,056             --             --         21,059
  Proceeds from sale of property, plant
    and equipment ........................         4,243             --          4,397          1,188             --          9,828
  Dividends from investments in
    affiliated companies .................         4,929             --             --             --             --          4,929
  Other ..................................         2,778             --             --             --             --          2,778
                                             -----------    -----------    -----------    -----------    -----------    -----------
  Net cash provided (used) by investing
    activities ...........................         6,242           (999)        (3,011)        (1,438)            --            794

CASH FLOWS FROM FINANCING ACTIVITIES:
  (Decrease) increase in short-term
    debt .................................       (19,572)         2,919         (2,923)         2,783         27,113         10,320
  Proceeds from issuance of long-term
    debt .................................         2,622             --             --             --             --          2,622
  Payments on principal of long-term
    debt .................................       (23,344)            --        (34,993)        (1,810)            --        (60,147)
  Payments for redemption of member
    equities .............................       (36,472)            --             --             --             --        (36,472)
  Other ..................................        (9,332)         4,220            301          1,321          5,498          2,008
                                             -----------    -----------    -----------    -----------    -----------    -----------
  Net cash (used) provided by financing
    activities ...........................       (86,098)         7,139        (37,615)         2,294         32,611        (81,669)
                                             -----------    -----------    -----------    -----------    -----------    -----------
  Net (decrease) increase in cash and
    short-term investments ...............       (49,319)         2,120           (379)        (3,145)            --        (50,723)
Cash and short-term investments at
  beginning of period ....................       111,054          9,090         (1,027)        11,052             --        130,169
                                             -----------    -----------    -----------    -----------    -----------    -----------
Cash and short-term investments at end
  of period ..............................   $    61,735    $    11,210    $    (1,406)   $     7,907    $        --    $    79,446
                                             ===========    ===========    ===========    ===========    ===========    ===========
</Table>



                                       21
<PAGE>

                         LAND O'LAKES FARMLAND FEED LLC

                           CONSOLIDATED BALANCE SHEETS


<Table>
<Caption>
                                                         JUNE 30,       DECEMBER 31,
                                                           2003             2002
                                                       ------------     ------------
                                                            ($ IN THOUSANDS)
                                                       (UNAUDITED)
<S>                                                    <C>              <C>
ASSETS

Current assets:
  Cash and short-term investments ................     $         --     $        356
  Receivables, net ...............................           59,570          127,382
  Receivable from legal settlement ...............               --            6,000
  Inventories ....................................          116,278          113,078
  Prepaid expenses and other current assets ......            8,502            7,835
  Note receivable - Land O'Lakes, Inc. ...........           91,109           29,493
                                                       ------------     ------------
          Total current assets ...................          275,459          284,144

Investments ......................................           20,539           22,973
Property, plant and equipment, net ...............          241,721          251,739
Goodwill, net ....................................          122,254          122,486
Other intangibles ................................           96,606           96,804
Other assets .....................................           28,573           28,762
                                                       ------------     ------------
          Total assets ...........................     $    785,152     $    806,908
                                                       ============     ============

LIABILITIES AND EQUITIES

Current liabilities:
  Notes and short-term obligations ...............     $        725     $      2,400
  Accounts payable ...............................           86,072          121,219
  Accrued expenses ...............................           34,932           48,134
                                                       ------------     ------------
          Total current liabilities ..............          121,729          171,753

Employee benefits and other liabilities ..........           27,648           29,447
Minority interests ...............................            6,131            2,960

Equities:
  Contributed capital ............................          515,376          515,376
  Retained earnings ..............................          114,268           87,372
                                                       ------------     ------------
          Total equities .........................          629,644          602,748
                                                       ------------     ------------
Commitments and contingencies

Total liabilities and equities ...................     $    785,152     $    806,908
                                                       ============     ============
</Table>

          See accompanying notes to consolidated financial statements.



                                       22
<PAGE>

                         LAND O'LAKES FARMLAND FEED LLC

                      CONSOLIDATED STATEMENTS OF OPERATIONS

<Table>
<Caption>
                                                       FOR THE THREE MONTHS ENDED         FOR THE SIX MONTHS ENDED
                                                                JUNE 30,                          JUNE 30,
                                                          2003             2002             2003             2002
                                                      ------------     ------------     ------------     ------------
                                                                             ($ IN THOUSANDS)
                                                                                (UNAUDITED)
<S>                                                   <C>              <C>              <C>              <C>

Net sales ........................................    $    592,655     $    584,292     $  1,193,755     $  1,195,752
Cost of sales ....................................         526,464          513,956        1,055,310        1,052,588
                                                      ------------     ------------     ------------     ------------
Gross profit .....................................          66,191           70,336          138,445          143,164

Selling, general and administration ..............          58,794           61,155          117,438          120,830
Restructuring and impairment charges .............             615            1,041              707            4,476
                                                      ------------     ------------     ------------     ------------
Earnings from operations .........................           6,782            8,140           20,300           17,858

Interest income, net .............................          (2,142)            (618)          (3,249)          (1,344)
Gain on legal settlements ........................          (2,134)              --           (3,002)              --
Gain on sale of intangible .......................              --               --               --           (4,184)
Gain on sale of investment .......................            (346)              --             (846)              --
Equity in earnings of affiliated companies .......              (9)             (60)            (556)            (263)
Minority interest in earnings of subsidiaries ....             559              276              739              486
                                                      ------------     ------------     ------------     ------------
Earnings before income taxes .....................          10,854            8,542           27,214           23,163
Income tax expense ...............................             156              177              318              306
                                                      ------------     ------------     ------------     ------------
Net earnings .....................................    $     10,698     $      8,365     $     26,896     $     22,857
                                                      ============     ============     ============     ============
</Table>

          See accompanying notes to consolidated financial statements.



                                       23
<PAGE>

                         LAND O'LAKES FARMLAND FEED LLC

                      CONSOLIDATED STATEMENTS OF CASH FLOWS

<Table>
<Caption>
                                                                  FOR THE SIX MONTHS ENDED
                                                                           JUNE 30,
                                                                    2003             2002
                                                                ------------     ------------
                                                                       ($ IN THOUSANDS)
                                                                          (UNAUDITED)
<S>                                                             <C>              <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
  Net earnings .............................................    $     26,896     $     22,857
  Adjustments to reconcile net earnings to net cash
     provided by operating activities:
        Depreciation and amortization ......................          20,151           24,077
        Bad debt expense ...................................           1,139            1,850
        Receivable from legal settlement ...................           6,000               --
        Decrease (increase) in other assets ................             189           (5,747)
        Decrease in other liabilities ......................          (2,096)          (2,445)
        Restructuring and impairment charges ...............             707            4,476
        Equity in earnings of affiliated companies .........            (556)            (263)
        Minority interest ..................................             739              486
        Gain on sale of investments ........................            (846)              --
  Changes in current assets and liabilities, net of
     acquisitions and divestitures:
        Receivables ........................................          66,684           19,444
        Inventories ........................................          (1,421)           3,667
        Other current assets ...............................           2,163              994
        Accounts payable ...................................         (37,072)         (26,224)
        Accrued expenses ...................................         (17,215)          (6,156)
                                                                ------------     ------------
  Net cash provided by operating activities ................          65,462           37,016

CASH FLOWS FROM INVESTING ACTIVITIES:
  Additions to property, plant and equipment ...............          (9,691)          (8,522)
  Proceeds from sale of investments ........................           3,000            1,056
  Proceeds from sale of property, plant and equipment ......           1,327            5,585
  Other ....................................................           2,540               --
                                                                ------------     ------------
  Net cash used by investing activities ....................          (2,824)          (1,881)

CASH FLOWS FROM FINANCING ACTIVITIES:
  Decrease in short-term debt ..............................          (1,378)          (1,500)
  Proceeds from note receivable from Land O'Lakes, Inc. ....         239,934          228,196
  Payments on note payable to Land O'Lakes, Inc. ...........        (301,550)        (264,850)
                                                                ------------     ------------
  Net cash used by financing activities ....................         (62,994)         (38,154)
                                                                ------------     ------------
  Net decrease in cash and short-term investments ..........            (356)          (3,019)

Cash and short-term investments at beginning of period .....             356            3,019
                                                                ------------     ------------
Cash and short-term investments at end of period ...........    $         --     $         --
                                                                ============     ============
</Table>

          See accompanying notes to consolidated financial statements.



                                       24
<PAGE>

                         LAND O'LAKES FARMLAND FEED LLC

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                           ($ IN THOUSANDS IN TABLES)
                                   (UNAUDITED)


1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

    The unaudited consolidated financial statements reflect, in the opinion of
the management of Land O'Lakes Farmland Feed LLC (the "Company"), all normal
recurring adjustments necessary for a fair statement of the financial position
and results of operations and cash flows for the interim periods. The statements
are condensed, therefore do not include all of the information and footnotes
required by accounting principles generally accepted in the United States of
America for complete financial statements. For further information, refer to the
audited consolidated financial statements and footnotes for the year ended
December 31, 2002 included in our Annual Report on Form 10-K. The results of
operations and cash flows for interim periods are not necessarily indicative of
results for a full year.

RECENT ACCOUNTING PRONOUNCEMENTS

    On January 1, 2003, the Company adopted Statement of Financial Accounting
Standards 146, "Accounting for Costs Associated with Exit or Disposal
Activities." The standard requires that a liability for a cost associated with
an exit or disposal activity be recognized and measured initially at fair value
when the liability is incurred. Under prior accounting literature, certain costs
for exit activities were recognized at the date a company committed to an exit
plan. The provisions of the standard are effective for exit or disposal
activities initiated after December 31, 2002.

2. RECEIVABLES

    A summary of receivables is as follows:

<Table>
<Caption>
                                                          JUNE 30,    DECEMBER 31,
                                                            2003          2002
                                                          --------    ------------
<S>                                                       <C>         <C>
Trade accounts .....................................      $ 24,091      $ 22,458
Notes and contracts ................................         3,548        23,494
Notes from sale of trade receivables (see Note 3)...        29,173        83,158
Other ..............................................        14,662         8,871
                                                          --------      --------
                                                            71,474       137,981
Less allowance for doubtful accounts ...............        11,904        10,599
                                                          --------      --------
Total receivables, net .............................      $ 59,570      $127,382
                                                          ========      ========
</Table>


3.  RECEIVABLES PURCHASE FACILITY

    In December 2001, the Company along with Land O'Lakes, Inc. ("Land O'Lakes")
established a $100.0 million receivables purchase facility with CoBank, ACB
("CoBank"). A wholly-owned unconsolidated qualifying special purpose entity,
Land O'Lakes Farmland Feed SPV, LLC, ("QSPE"), was established to purchase
certain receivables from the Company along with Land O'Lakes. CoBank has been
granted an interest in the receivables owned by the QSPE. The transfers of the
receivables from the Company to the QSPE are structured as sales and,
accordingly, the receivables transferred to the QSPE are not reflected in the
Company's consolidated balance sheet. However, the Company retains the credit
risk related to the repayment of the notes receivable with the QSPE, which in
turn is dependent upon the credit risk of the QSPE's receivables. Accordingly,
the Company has retained reserves for estimated losses. The Company expects no
significant gains or losses from the sale of the receivables. At June 30, 2003,
$80.0 million was outstanding under this facility. The total accounts receivable
sold during the three months ended June 30, 2003 and 2002 were $519.0 million
and $545.5 million, respectively. The total accounts receivable sold during the
six months ended June 30, 2003 and 2002 were $1,071.1 million and $1,125.2
million, respectively.


                                       25



<PAGE>




4.  INVENTORIES

    A summary of inventories is as follows:

<Table>
<Caption>
                                                          JUNE 30,    DECEMBER 31,
                                                            2003          2002
                                                          --------    ------------
<S>                                                       <C>         <C>
Raw materials ......................................      $ 84,010      $ 83,187
Finished goods .....................................        32,268        29,891
                                                          --------      --------
Total inventories ..................................      $116,278      $113,078
                                                          ========      ========
</Table>

5.  INVESTMENTS

    The Company's investments are as follows:

<Table>
<Caption>
                                                            JUNE 30,  DECEMBER 31,
                                                              2003         2002
                                                            -------   ------------
<S>                                                         <C>       <C>
New Feeds, LLC .......................................      $ 3,177      $ 3,033
Agland Farmland Feed, LLC ............................        2,462        2,585
Pro-Pet, LLC .........................................        2,561        2,326
Northern Country Feeds, LLC ..........................        1,736        1,704
LOLFF SPV, LLC .......................................        1,000        1,000
CalvaAlto Liquid, LLC ................................        1,302        1,302
Strauss Feeds, LLC ...................................        1,242        1,041
Nutrikowi, LLC .......................................          876          876
Dakotaland Feeds, LLC ................................          842          744
Harmony Farms, LLC ...................................           --        2,435
Other ................................................        5,341        5,927
                                                            -------      -------
Total investments ....................................      $20,539      $22,973
                                                            =======      =======
</Table>


6.  GOODWILL AND OTHER INTANGIBLE ASSETS

GOODWILL

The change in the carrying amount of goodwill for the six months ended June 30,
2003, is as follows.

<Table>
<S>                                                                   <C>
Balance as of January 1, 2003 ..................................      $ 122,486
  Amortization expense .........................................           (232)
                                                                      ---------
Balance as of June 30, 2003 ....................................      $ 122,254
                                                                      =========
</Table>

OTHER INTANGIBLE ASSETS

<Table>
<Caption>
                                                                                        JUNE 30,   DECEMBER 31,
                                                                                          2003         2002
                                                                                        -------    ------------
<S>                                                                                     <C>        <C>
Amortized other intangible assets
  Trademarks, less accumulated amortization of $306 and $262, respectively .......      $   576      $   621
  Patents, less accumulated amortization of $1,998 and $1,395, respectively ......       14,375       14,978
  Agreements not to compete, less accumulated amortization of $727 and $626,
    respectively .................................................................          674          775
  Other intangible assets, less accumulated amortization of $5,912 and $6,463,
    respectively .................................................................        4,018        3,467
                                                                                        -------      -------
Total amortized other intangible assets ..........................................       19,643       19,841
Total non-amortized other intangible assets-trademarks ...........................       76,963       76,963
                                                                                        -------      -------
Total other intangible assets ....................................................      $96,606      $96,804
                                                                                        =======      =======
</Table>

    Amortization expense for the three months ended June 30, 2003 and 2002 was
$0.7 million and $1.2 million, respectively. Amortization expense for the six
months ended June 30, 2003 and 2002 was $1.3 million and $1.8 million,
respectively. The estimated amortization expense related to other intangible
assets subject to amortization for the next five years will approximate $2.2
million annually. The weighted-average life of the intangible assets subject to
amortization is approximately 13 years.



                                       26



<PAGE>




7.  RESTRUCTURING AND IMPAIRMENT CHARGES

RESTRUCTURING CHARGES

    For the three and six months ended June 30, 2003, the Company recorded a
restructuring charge of $0.6 million which represented severance costs related
to closing feed plants.

    For the six months ended June 30, 2002, the Company recorded restructuring
charges of $2.8 million representing severance and outplacement costs for 136
employees at the Ft. Dodge office and other plant facilities.

    A summary of the restructuring reserve for the six months ended June 30,
2003 is as follows:


<Table>
<Caption>
                                BALANCE                                 BALANCE
                              DECEMBER 31,  CHARGE TO    UTILIZED       JUNE 30,
                                 2002        EXPENSE      IN 2003         2003
                              ------------  ---------    --------       --------
<S>                           <C>           <C>          <C>            <C>
  Termination benefits ...      $ 6,396      $   615      $(4,768)      $ 2,243
                                =======      =======      =======       =======
</Table>

IMPAIRMENT CHARGES

    For the six months ended June 30, 2003, the Company recorded impairment
charges of $0.1 million for write downs of certain plant assets to their
estimated fair value. For the three and six months ended June 30, 2002, the
Company recorded impairment charges of $1.0 million and $1.7 million,
respectively, for write downs of certain plant assets to their estimated fair
value.

8.  GAIN ON LEGAL SETTLEMENTS

    During the six months ended June 30, 2003, the Company recognized a gain on
legal settlements of $3.0 million, of which $2.1 was recognized in the three
months ended June 30, 2003. The gain represents cash received from product
suppliers against whom the Company alleged certain price-fixing claims.

9.  GAIN ON SALE OF INTANGIBLE

    In the six months ended June 30, 2002, the Company recorded a $4.2 million
gain on the sale of a customer list pertaining to the feed phosphate
distribution business.

10.  GAIN ON SALE OF INVESTMENT

    For the three and six months ended June 30, 2003, the Company recorded gains
of $0.3 million and $0.8 million, respectively, on the sale of a Feed investment
in a swine joint venture.

11.  COMMITMENTS AND CONTINGENCIES

GUARANTEES OF PARENT DEBT

    In November 2001, Land O'Lakes, which owns 92% of the Company, issued $350
million of senior notes, due 2011. These notes are guaranteed by certain
domestic, wholly-owned subsidiaries of Land O'Lakes, including the Company, and
by each domestic wholly-owned subsidiary of the Company.

    This guarantee is a general unsecured obligation, ranks equally in right of
payment with all existing and future senior indebtedness of Land O'Lakes, is
senior in right of payment to all existing and future subordinated obligations
of Land O'Lakes, and is effectively subordinated to any secured indebtedness of
Land O'Lakes and its subsidiaries, including the Company, to the extent of the
value of the assets securing such indebtedness. The maximum potential amount of
future payments that the Company would be required to make is $350 million as of
June 30, 2003. Currently, the Company does not record a liability regarding the
guarantee. The Company has no recourse provision that would enable it to recover
amounts paid under the guarantee from Land O'Lakes or any other parties.


                                       27



<PAGE>



    The notes are not guaranteed by certain majority-owned subsidiaries of the
Company (the "Non-Guarantors"). Summarized financial information of the
Non-Guarantors, which is consolidated in the financial statements of the
Company, as of and for the periods indicated, are as follows:

<Table>
<Caption>
                                       SIX
                                      MONTHS
                                      ENDED      YEAR ENDED
                                     JUNE 30,    DECEMBER 31,
                                       2003         2002
                                     --------    ------------
<S>                                  <C>         <C>
Total assets (end of period) ...      $20,578      $23,433
Net sales ......................       24,704       53,669
Net earnings ...................          570          626
</Table>

    In November 2001, Land O'Lakes entered into new term facilities consisting
of a $325 million five-year Term Loan A facility and a $250 million seven-year
Term Loan B facility. These facilities are unconditionally guaranteed by certain
domestic, wholly-owned subsidiaries of Land O'Lakes, including the Company, and
by each domestic wholly-owned subsidiary of the Company. The maximum potential
payment related to this guarantee is $448 million as of June 30, 2003. The
Company does not currently record a liability related to the guarantee of the
Term Loans, and the Company has no recourse provisions that would enable it to
recover from Land O'Lakes or any other parties.

GUARANTEES OF PRODUCER LOANS

    The Company guarantees certain loans to large producers financed by LOL
Finance Co. The loans totaled $13.2 million and $15.2 million at June 30, 2003
and December 31, 2002, respectively. Reserves for these guarantees of $0.7
million at both June 30, 2003 and December 31, 2002, are included in the
allowance for doubtful accounts. The maximum amount guaranteed by the Company is
$7.0 million with the remaining balance guaranteed by Land O'Lakes. There were
no write-offs related to producer loans for the six months ended June 30, 2003.
The Company would have recourse against the producer to partially off-set the
liability.

    The Company also guarantees certain loans to producers and dealers financed
by third party lenders. The loans totaled $2.3 million and $2.4 million at June
30, 2003 and December 31, 2002, respectively. Reserves for these guarantees of
$0.5 million and $0.5 million at June 30, 2003 and December 31, 2002,
respectively, are included in the consolidated balance sheet. There were no
write-offs related to these loans in the six months ended June 30, 2003. The
maximum potential payment related to these guarantees is $1.0 million. The
Company has no recourse against the producer or dealer to partially off-set the
potential liability.

12.  CONSOLIDATING FINANCIAL INFORMATION

    Land O'Lakes has issued $350 million in senior notes which are guaranteed by
certain domestic wholly-owned and majority-owned subsidiaries of Land O'Lakes,
including the Company and the Company's domestic wholly-owned subsidiaries (the
"Guarantor Subsidiaries"). Such guarantees are full, unconditional and joint and
several. The Company's majority-owned subsidiaries are excluded from the
guarantee ("Non-Guarantor Subsidiaries").

    The following supplemental financial information sets forth, on an
unconsolidated basis, balance sheet, statement of operations and cash flow
information for the Company, Guarantor Subsidiaries and the Company's
Non-Guarantor Subsidiaries. The supplemental financial information reflects the
investments of the Company in the Guarantor and Non-Guarantor Subsidiaries using
the equity method of accounting.


                                       28



<PAGE>
                         LAND O'LAKES FARMLAND FEED LLC

                 SUPPLEMENTAL CONSOLIDATING FINANCIAL STATEMENTS
                                  JUNE 30, 2003

<TABLE>
<CAPTION>
                                         LAND         WHOLLY                   WHOLLY OWNED
                                       O'LAKES        OWNED                    SUBSIDIARIES
                                       FARMLAND    SUBSIDIARIES  WHOLLY OWNED   OF PURINA       NON-
                                       FEED LLC         OF       PURINA MILLS,    MILLS,      GUARANTOR
                                        PARENT      LOLFF LLC     LLC PARENT       LLC      SUBSIDIARIES ELIMINATIONS  CONSOLIDATED
                                       ---------   ------------  ------------  ------------ ------------ ------------  ------------
                                                                         ($ IN THOUSANDS)
<S>                                    <C>         <C>           <C>           <C>          <C>          <C>           <C>
                                                                              ASSETS
Current assets:
  Cash and short-term investments .    $      --    $      --     $      --    $      --     $      --    $      --     $      --
  Receivables, net ................       41,374       38,162            --          702         6,515      (27,183)       59,570
  Inventories .....................       95,493       15,419            --        1,018         4,348           --       116,278
  Prepaid expenses and other
    current assets ................        4,782          316         3,154           11           239           --         8,502
  Note receivable - Land
    O'Lakes, Inc. .................       91,109           --            --           --            --           --        91,109
                                       ---------    ---------     ---------    ---------     ---------    ---------     ---------
          Total current assets ....      232,758       53,897         3,154        1,731        11,102      (27,183)      275,459

Investments .......................      203,237          756            --        2,039         1,303     (186,796)       20,539
Property, plant and equipment,
   net ............................       96,015        7,156       132,077        1,071         5,402           --       241,721
Goodwill ..........................      118,383        3,655            --           --           216           --       122,254
Other intangibles .................       95,335          942            --           --           329           --        96,606
Other assets ......................       27,240        1,427            --           --         1,606       (1,700)       28,573
                                       ---------    ---------     ---------    ---------     ---------    ---------     ---------
          Total assets ............    $ 772,968    $  67,833     $ 135,231    $   4,841     $  19,958    $(215,679)    $ 785,152
                                       =========    =========     =========    =========     =========    =========     =========

                                                                    LIABILITIES AND EQUITIES
Current liabilities:
  Notes and short-term obligations.    $     725    $      --     $      --    $      --     $      --    $      --     $     725
  Accounts payable ................       79,252       28,797            --           --         5,206      (27,183)       86,072
  Accrued expenses ................       31,938        1,155            --          248         1,591           --        34,932
                                       ---------    ---------     ---------    ---------     ---------    ---------     ---------
          Total current liabilities      111,915       29,952            --          248         6,797      (27,183)      121,729

Employee benefits and other
  liabilities .....................       28,471         (392)           --          207         1,062       (1,700)       27,648
Minority interests ................        2,938           --            --           --         3,193           --         6,131
Equities:
  Contributed capital .............      515,376       17,096        87,057        9,645         7,341     (121,139)      515,376
  Retained earnings ...............      114,268       21,177        48,174       (5,259)        1,565      (65,657)      114,268
                                       ---------    ---------     ---------    ---------     ---------    ---------     ---------
          Total equities ..........      629,644       38,273       135,231        4,386         8,906     (189,796)      629,644
                                       ---------    ---------     ---------    ---------     ---------    ---------     ---------
Commitments and contingencies
Total liabilities and equities ....    $ 772,968    $  67,833     $ 135,231    $   4,841     $  19,958    $(215,679)    $ 785,152
                                       =========    =========     =========    =========     =========    =========     =========
</TABLE>




                                       29
<PAGE>

                         LAND O'LAKES FARMLAND FEED LLC

               SUPPLEMENTAL CONSOLIDATING STATEMENT OF OPERATIONS
                    FOR THE THREE MONTHS ENDED JUNE 30, 2003

<TABLE>
<CAPTION>
                                         LAND         WHOLLY                   WHOLLY OWNED
                                       O'LAKES        OWNED                    SUBSIDIARIES
                                       FARMLAND    SUBSIDIARIES  WHOLLY OWNED   OF PURINA       NON-
                                       FEED LLC         OF       PURINA MILLS,    MILLS,      GUARANTOR
                                        PARENT      LOLFF LLC     LLC PARENT       LLC      SUBSIDIARIES ELIMINATIONS  CONSOLIDATED
                                       ---------   ------------  ------------  ------------ ------------ ------------  ------------
                                                                         ($ IN THOUSANDS)
<S>                                    <C>         <C>           <C>           <C>          <C>          <C>           <C>
Net sales .........................    $ 509,056    $  56,430     $      --    $  14,080     $  13,089    $      --     $ 592,655
Cost of sales .....................      448,816       47,795         6,050       12,446        11,357           --       526,464
                                       ---------    ---------     ---------    ---------     ---------    ---------     ---------
Gross profit ......................       60,240        8,635        (6,050)       1,634         1,732           --        66,191

Selling, general and
administrative ....................       50,508        5,736         1,425          136           989           --        58,794
Restructuring and impairment
  charges .........................          615           --            --           --            --           --           615
                                       ---------    ---------     ---------    ---------     ---------    ---------     ---------
Earnings (loss) from
  operations ......................        9,117        2,899        (7,475)       1,498           743           --         6,782

Interest (income) expense, net ....       (2,017)        (136)           --           --            11           --        (2,142)
Gain on legal settlements .........           --           --        (2,134)          --            --           --        (2,134)
Gain on sale of investment ........           --           --            --         (346)           --           --          (346)
Equity in loss (earnings)
  of affiliated companies .........           62           --            --          199            --         (270)           (9)
Minority interest in earnings
  of subsidiaries .................          374           --            --           --           185           --           559
                                       ---------    ---------     ---------    ---------     ---------    ---------     ---------
Earnings (loss) before income
  taxes ...........................       10,698        3,035        (5,341)       1,645           547          270        10,854
Income tax expense ................           --           --            --           --           156           --           156
                                       ---------    ---------     ---------    ---------     ---------    ---------     ---------
Net earnings (loss) ...............    $  10,698    $   3,035     $  (5,341)   $   1,645     $     391    $     270     $  10,698
                                       =========    =========     =========    =========     =========    =========     =========
</TABLE>




                                       30
<PAGE>


                         LAND O'LAKES FARMLAND FEED LLC

               SUPPLEMENTAL CONSOLIDATING STATEMENT OF OPERATIONS
                     FOR THE SIX MONTHS ENDED JUNE 30, 2003

<TABLE>
<CAPTION>
                                          LAND        WHOLLY                   WHOLLY OWNED
                                        O'LAKES       OWNED                    SUBSIDIARIES
                                        FARMLAND   SUBSIDIARIES  WHOLLY OWNED   OF PURINA       NON-
                                        FEED LLC        OF       PURINA MILLS,    MILLS,      GUARANTOR
                                         PARENT     LOLFF LLC     LLC PARENT       LLC      SUBSIDIARIES ELIMINATIONS  CONSOLIDATED
                                        ---------  ------------  ------------  ------------ ------------ ------------  ------------
                                                                         ($ IN THOUSANDS)
<S>                                    <C>         <C>           <C>           <C>          <C>          <C>           <C>
Net sales .........................    $ 1,052,239     $ 90,617    $      --     $  26,195     $ 24,704    $     --     $ 1,193,755
Cost of sales .....................        919,975       79,122       12,115        22,569       21,529          --       1,055,310
                                       -----------     --------    ---------     ---------     --------    --------     -----------
Gross profit ......................        132,264       11,495      (12,115)        3,626        3,175          --         138,445

Selling, general and
administrative ....................        106,422        7,376        1,576           176        1,888          --         117,438
Restructuring and impairment
  charges .........................            707           --           --            --           --          --             707
                                       -----------     --------    ---------     ---------     --------    --------     -----------
Earnings (loss) from
operations ........................         25,135        4,119      (13,691)        3,450        1,287          --          20,300

Interest (income) expense, net ....         (3,280)          --           --            --           31          --          (3,249)
Gain on legal settlements .........             --           --       (3,002)           --           --          --          (3,002)
Gain on sale of investment ........             --           --           --          (846)          --          --            (846)
Equity in loss (earnings)
  of affiliated companies .........          1,148           --           --           269           --      (1,973)           (556)
Minority interest in earnings
  of subsidiaries .................            371           --           --            --          368          --             739
                                       -----------     --------    ---------     ---------     --------    --------     -----------
Earnings (loss) before income
  taxes ...........................         26,896        4,119      (10,689)        4,027          888       1,973          27,214
Income tax expense ................             --           --           --            --          318          --             318
                                       -----------     --------    ---------     ---------     --------    --------     -----------
Net earnings (loss) ...............    $    26,896     $  4,119    $ (10,689)    $   4,027     $    570    $  1,973     $    26,896
                                       ===========     ========    =========     =========     ========    ========     ===========
</TABLE>



                                       31
<PAGE>


                         LAND O'LAKES FARMLAND FEED LLC

               SUPPLEMENTAL CONSOLIDATING STATEMENT OF CASH FLOWS
                     FOR THE SIX MONTHS ENDED JUNE 30, 2003

<TABLE>
<CAPTION>
                                            LAND        WHOLLY                   WHOLLY OWNED
                                          O'LAKES       OWNED                    SUBSIDIARIES
                                          FARMLAND   SUBSIDIARIES  WHOLLY OWNED   OF PURINA       NON-
                                          FEED LLC        OF       PURINA MILLS,    MILLS,      GUARANTOR
                                           PARENT     LOLFF LLC     LLC PARENT       LLC      SUBSIDIARIES ELIMINATIONS CONSOLIDATED
                                          ---------  ------------  ------------  ------------ ------------ ------------ ------------
                                                                         ($ IN THOUSANDS)
<S>                                       <C>        <C>           <C>           <C>          <C>          <C>          <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
  Net earnings (loss) ................    $  26,896     $   4,119     $ (10,689)    $ 4,027     $   570     $   1,973     $  26,896
  Adjustments to reconcile net
    earnings (loss) to net cash
    provided (used) by operating
    activities:
    Depreciation and amortization ....        6,970           778        12,115          18         270            --        20,151
    Bad debt expense .................        1,139            --            --          --          --            --         1,139
    Receivable from legal settlement .        6,000            --            --          --          --            --         6,000
    Decrease (increase) in other
     assets ..........................          474             6            --          --         709        (1,000)          189
    (Decrease) increase in other
     liabilities .....................       (6,836)         (185)           --          --         474         4,451        (2,096)
    Restructuring and impairment
     charges .........................          707            --            --          --          --            --           707
    Equity in loss (earnings) of
     affiliated companies ............        1,148            --            --         269          --        (1,973)         (556)
    Minority interest ................          371            --            --          --         368            --           739
    Gain on sale of investment .......           --            --            --        (846)         --            --          (846)
  Changes in current assets and
    liabilities, net of acquisitions
    and divestitures:
    Receivables ......................      208,947       (15,778)           --         665         (80)     (127,070)       66,684
    Inventories ......................       (2,912)          338            --         916         237            --        (1,421)
    Other current assets .............        2,197             6            --         (11)        (29)           --         2,163
    Accounts payable .................     (149,866)        5,352            --        (633)      1,550       106,525       (37,072)
    Accrued expenses .................      (13,785)       (1,800)           --        (448)     (1,182)           --       (17,215)
                                          ---------     ---------     ---------     -------     -------     ---------     ---------
  Net cash provided (used) by
    operating activities .............       81,450        (7,164)        1,426       3,957       2,887       (17,094)       65,462

CASH FLOWS FROM INVESTING ACTIVITIES:
  Additions to property, plant and
   equipment .........................       (9,143)         (114)           --          --        (434)           --        (9,691)
  Proceeds from sale of investments ..        3,000            --            --          --          --            --         3,000
  Proceeds from sale of property,
    plant and equipment ..............           87            --         1,141          --          99            --         1,327
  Other ..............................          965            --         1,575          --          --            --         2,540
                                          ---------     ---------     ---------     -------     -------     ---------     ---------
  Net cash (used) provided by
    investing activities .............       (5,091)         (114)        2,716          --        (335)           --        (2,824)

CASH FLOWS FROM FINANCING ACTIVITIES:
  (Decrease) increase in
    short-term debt ..................       (1,378)           --            --          --      (2,341)        2,341        (1,378)
  Proceeds from note receivable from
    Land O'Lakes, Inc. ...............      239,934            --            --          --          --            --       239,934
  Payments on note payable to Land
    O'Lakes, Inc. ....................     (299,522)           --            --          --      (2,028)           --      (301,550)
  Distributions from Purina
    Mills, LLC .......................           --            --       (10,726)     (4,027)         --        14,753            --
                                          ---------     ---------     ---------     -------     -------     ---------     ---------
  Net cash (used) provided by
    financing activities .............      (60,966)           --            --          --      (4,369)       17,094       (62,994)
                                          ---------     ---------     ---------     -------     -------     ---------     ---------
  Net increase (decrease) in cash and
    short-term investments ...........       15,393        (7,278)       (6,584)        (70)     (1,817)           --          (356)

Cash and short-term investments at
    beginning of period ..............      (15,393)        7,278         6,584          70       1,817            --           356
                                          ---------     ---------     ---------     -------     -------     ---------     ---------
Cash and short-term investments at
    end of period ....................    $      --     $      --     $      --     $    --     $    --     $      --     $      --
                                          =========     =========     =========     =======     =======     =========     =========
</TABLE>


                                       32
<PAGE>


                         LAND O'LAKES FARMLAND FEED LLC

                    SUPPLEMENTAL CONSOLIDATING BALANCE SHEET
                                DECEMBER 31, 2002

<TABLE>
<CAPTION>
                                         LAND         WHOLLY                   WHOLLY OWNED
                                       O'LAKES        OWNED                    SUBSIDIARIES
                                       FARMLAND    SUBSIDIARIES  WHOLLY OWNED   OF PURINA       NON-
                                       FEED LLC         OF       PURINA MILLS,    MILLS,      GUARANTOR
                                        PARENT      LOLFF LLC     LLC PARENT       LLC      SUBSIDIARIES ELIMINATIONS  CONSOLIDATED
                                       ---------   ------------  ------------  ------------ ------------ ------------  ------------
                                                                         ($ IN THOUSANDS)
<S>                                    <C>         <C>           <C>           <C>          <C>          <C>           <C>
                                                                             ASSETS
Current assets:
  Cash and short-term
   investments ....................    $ (15,393)   $   7,278     $   6,550    $      70     $   1,817    $      --     $     356
  Receivables, net ................      173,416       20,156        22,509        1,367         6,428      (96,494)      127,382
  Receivable from legal
   settlement .....................           --           --         6,000           --            --           --         6,000
  Inventories .....................       45,693       15,757        45,109        1,934         4,585           --       113,078
  Prepaid expenses and other
   current assets .................        3,224          322         4,079           --           210           --         7,835
  Note receivable -- Land
   O'Lakes, Inc. ..................       29,493           --        57,759           --            --      (57,759)       29,493
                                       ---------    ---------     ---------    ---------     ---------    ---------     ---------
    Total current assets ..........      236,467       43,513       142,006        3,371        13,040     (154,253)      284,144
Investments .......................      473,350          258            --        5,491         2,196     (458,322)       22,973
Property, plant and
 equipment, net ...................       83,735        7,530       154,023        1,114         5,337           --       251,739
Goodwill ..........................       12,815        3,656       105,202           --           813           --       122,486
Other intangibles .................           84        2,639        93,984           --            97           --        96,804
Other assets ......................        7,959           --        21,553           --         1,950       (2,700)       28,762
                                       ---------    ---------     ---------    ---------     ---------    ---------     ---------
    Total assets ..................    $ 814,410    $  57,596     $ 516,768    $   9,976     $  23,433    $(615,275)    $ 806,908
                                       =========    =========     =========    =========     =========    =========     =========

                                                                     LIABILITIES AND EQUITIES
Current liabilities:
  Notes and short-term
   obligations ....................    $   2,000    $      --     $      --    $      --     $   2,341    $  (2,341)    $   2,000
  Accounts payable ................      190,263       22,803        47,656        5,302         3,656     (148,461)      121,219
  Accrued expenses ................       17,888        2,955        23,822          696         2,773           --        48,134
                                       ---------    ---------     ---------    ---------     ---------    ---------     ---------
    Total current liabilities .....      210,151       25,758        71,478        5,998         8,770     (150,802)      171,353
Notes payable-- Land
 O'Lakes, Inc.-- noncurrent .......           --        2,700            --           --            --       (2,700)           --
Employee benefits and other
 liabilities ......................        1,482           --        28,411           --         3,405       (3,451)       29,847
Minority interests ................           --           --            29           --         2,931           --         2,960
Equities:
  Contributed capital .............      515,376       16,272       358,017        8,882         7,420     (390,980)      515,376
  Retained earnings
   (accumulated deficit) ..........       87,372       12,866        58,862       (4,904)          907      (67,731)       87,372
                                       ---------    ---------     ---------    ---------     ---------    ---------     ---------
    Total equities ................      602,748       29,138       416,879        3,978         8,327     (458,322)      602,748
                                       ---------    ---------     ---------    ---------     ---------    ---------     ---------
Commitments and contingencies
Total liabilities and equities ....    $ 814,410    $  57,596     $ 516,768    $   9,976     $  23,433    $(615,275)    $ 806,908
                                       =========    =========     =========    =========     =========    =========     =========
</TABLE>



                                       33
<PAGE>

                         LAND O'LAKES FARMLAND FEED LLC

               SUPPLEMENTAL CONSOLIDATING STATEMENT OF OPERATIONS
                    FOR THE THREE MONTHS ENDED JUNE 30, 2002

<TABLE>
<CAPTION>
                                         LAND         WHOLLY                   WHOLLY OWNED
                                       O'LAKES        OWNED                    SUBSIDIARIES
                                       FARMLAND    SUBSIDIARIES  WHOLLY OWNED   OF PURINA       NON-
                                       FEED LLC         OF       PURINA MILLS,    MILLS,      GUARANTOR
                                        PARENT      LOLFF LLC     LLC PARENT       LLC      SUBSIDIARIES ELIMINATIONS  CONSOLIDATED
                                       ---------   ------------  ------------  ------------ ------------ ------------  ------------
                                                                         ($ IN THOUSANDS)
<S>                                    <C>         <C>           <C>           <C>          <C>          <C>           <C>
Net sales .........................    $ 321,348    $  49,583     $ 192,723    $   6,813     $  13,825    $      --     $ 584,292
Cost of sales .....................      293,063       44,855       158,819        5,039        12,180           --       513,956
                                       ---------    ---------     ---------    ---------     ---------    ---------     ---------
Gross profit ......................       28,285        4,728        33,904        1,774         1,645           --        70,336
Selling, general and
 administrative ...................       27,470        3,084        26,341        3,168         1,092           --        61,155
Restructuring and impairment
 charges ..........................        1,041           --            --           --            --           --         1,041
                                       ---------    ---------     ---------    ---------     ---------    ---------     ---------
(Loss) earnings from operations ...         (226)       1,644         7,563       (1,394)          553           --         8,140
Interest (income) expense, net ....         (496)         129          (274)          (5)           28           --          (618)
Equity in (earnings) loss of
 affiliated companies .............       (7,962)        (106)           22          394            --        7,592           (60)
Minority interest in (loss)
 earnings of subsidiaries .........         (133)         206            49           --           154           --           276
                                       ---------    ---------     ---------    ---------     ---------    ---------     ---------
Earnings (loss) before income
 taxes ............................        8,365        1,415         7,766       (1,783)          371       (7,592)        8,542
Income tax expense ................           --           --            --           --           177           --           177
                                       ---------    ---------     ---------    ---------     ---------    ---------     ---------
Net earnings (loss) ...............    $   8,365    $   1,415     $   7,766    $  (1,783)    $     194    $  (7,592)    $   8,365
                                       =========    =========     =========    =========     =========    =========     =========
</TABLE>



                                       34
<PAGE>

                         LAND O'LAKES FARMLAND FEED LLC

               SUPPLEMENTAL CONSOLIDATING STATEMENT OF OPERATIONS
                     FOR THE SIX MONTHS ENDED JUNE 30, 2002

<TABLE>
<CAPTION>
                                         LAND         WHOLLY                   WHOLLY OWNED
                                       O'LAKES        OWNED                    SUBSIDIARIES
                                       FARMLAND    SUBSIDIARIES  WHOLLY OWNED   OF PURINA       NON-
                                       FEED LLC         OF       PURINA MILLS,    MILLS,      GUARANTOR
                                        PARENT      LOLFF LLC     LLC PARENT       LLC      SUBSIDIARIES ELIMINATIONS  CONSOLIDATED
                                       ---------   ------------  ------------  ------------ ------------ ------------  ------------
                                                                         ($ IN THOUSANDS)
<S>                                    <C>         <C>           <C>           <C>          <C>          <C>           <C>
Net sales .........................    $ 666,356    $  88,328     $ 399,831    $  13,942     $  27,295    $      --    $1,195,752
Cost of sales .....................      606,899       79,732       330,952       10,368        24,637           --     1,052,588
                                       ---------    ---------     ---------    ---------     ---------    ---------     ---------
Gross profit ......................       59,457        8,596        68,879        3,574         2,658           --       143,164
Selling, general and
 administrative ...................       55,846        5,504        52,060        5,083         2,337           --       120,830
Restructuring and impairment
 charges ..........................        4,476           --            --           --            --           --         4,476
                                       ---------    ---------     ---------    ---------     ---------    ---------     ---------
(Loss) earnings from operations ...         (865)       3,092        16,819       (1,509)          321           --        17,858
Interest (income) expense, net ....       (1,100)         241          (575)          (5)           95           --        (1,344)
Gain on sale of intangible ........       (4,184)          --            --           --            --           --        (4,184)
Equity in (earnings) loss
 of affiliated companies ..........      (18,438)          --           (57)         634            --       17,598          (263)
Minority interest in earnings
 of subsidiaries ..................           --          206           102           --           178           --           486
                                       ---------    ---------     ---------    ---------     ---------    ---------     ---------
Earnings (loss) before income
 taxes ............................       22,857        2,645        17,349       (2,138)           48      (17,598)       23,163
Income tax expense ................           --           --            --           --           306           --           306
                                       ---------    ---------     ---------    ---------     ---------    ---------     ---------
Net earnings (loss) ...............    $  22,857    $   2,645     $  17,349    $  (2,138)    $    (258)   $ (17,598)    $  22,857
                                       =========    =========     =========    =========     =========    =========     =========
</TABLE>



                                       35
<PAGE>

                         LAND O'LAKES FARMLAND FEED LLC

               SUPPLEMENTAL CONSOLIDATING STATEMENT OF CASH FLOWS
                     FOR THE SIX MONTHS ENDED JUNE 30, 2002

<TABLE>
<CAPTION>
                                         LAND         WHOLLY                   WHOLLY OWNED
                                       O'LAKES        OWNED                    SUBSIDIARIES
                                       FARMLAND    SUBSIDIARIES  WHOLLY OWNED   OF PURINA       NON-
                                       FEED LLC         OF       PURINA MILLS,    MILLS,      GUARANTOR
                                        PARENT      LOLFF LLC     LLC PARENT       LLC      SUBSIDIARIES ELIMINATIONS  CONSOLIDATED
                                       ---------   ------------  ------------  ------------ ------------ ------------  ------------
                                                                         ($ IN THOUSANDS)
<S>                                    <C>         <C>           <C>           <C>          <C>          <C>           <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
  Net earnings (loss) .............    $  22,857    $   2,645     $  17,349    $  (2,138)    $    (258)   $ (17,598)    $  22,857
  Adjustments to reconcile net
   earnings (loss) to net cash
   provided (used) by operating
   activities:
    Depreciation and amortization .        7,331          430        15,756          174           386           --        24,077
    Bad debt expense ..............        1,850           --            --           --            --           --         1,850
    Decrease (increase) in other
     assets .......................       25,218        2,787        (3,849)         583           437      (30,923)       (5,747)
    (Decrease) increase in other
     liabilities ..................         (213)      (3,344)          970           --           142           --        (2,445)
    Restructuring and impairment
     charges ......................        4,476           --            --           --            --           --         4,476
    Equity in (earnings) loss of
     affiliated companies .........      (18,438)          --           (57)         634            --       17,598          (263)
    Minority interests ............           --          206           102           --           178           --           486
  Changes in current assets and
   liabilities, net of acquisitions
   and divestitures:
    Receivables ...................       (8,535)      (6,032)        7,587          202        (2,308)      28,530        19,444
    Inventories ...................       (2,315)       1,867         1,980          328         1,807           --         3,667
    Other current assets ..........           (2)        (183)        1,167           (4)           16           --           994
    Accounts payable ..............       22,773       (2,077)       (8,046)         (83)       (2,708)     (36,083)      (26,224)
    Accrued expenses ..............       (4,772)         199        (1,911)         230            98           --        (6,156)
                                       ---------    ---------     ---------    ---------     ---------    ---------     ---------
  Net cash provided (used) by
   operating activities ...........       50,230       (3,502)       31,048          (74)       (2,210)     (38,476)       37,016

CASH FLOWS FROM INVESTING ACTIVITIES:
  Additions to property, plant and
   equipment ......................       (3,369)        (331)       (4,592)        (143)          (87)          --        (8,522)
  Proceeds from sale of investments          681           --           375           --            --           --         1,056
  Proceeds from sale of property,
   plant and equipment ............        5,585           --            --           --            --           --         5,585
                                       ---------    ---------     ---------    ---------     ---------    ---------     ---------
  Net cash provided (used) by
   investing activities ...........        2,897         (331)       (4,217)        (143)          (87)          --        (1,881)

CASH FLOWS FROM FINANCING ACTIVITIES:
  (Decrease) increase in short-term
    debt ..........................       (8,962)       6,031            --           --         1,431           --        (1,500)
  Proceeds from note receivable from
   Land O'Lakes, Inc. .............      189,270           --            --           --            --       38,476       228,196
  Payments on note payable to Land
   O'Lakes, Inc. ..................     (226,374)      (1,610)      (35,111)          --        (1,755)          --      (264,850)
                                       ---------    ---------     ---------    ---------     ---------    ---------     ---------
  Net cash (used) provided by
   financing activities ...........      (45,616)       4,421       (35,111)          --          (324)      38,476       (38,154)
                                       ---------    ---------     ---------    ---------     ---------    ---------     ---------
  Net increase (decrease) in cash .        7,511          588        (8,280)        (217)       (2,621)          --        (3,019)

Cash and short-term investments at
 beginning of period ..............      (19,774)       4,377        14,156          214         4,046           --         3,019
                                       ---------    ---------     ---------    ---------     ---------    ---------     ---------
Cash and short-term investments at
 end of period ....................    $ (12,263)   $   4,965     $   5,876    $      (3)    $   1,425    $      --     $      --
                                       =========    =========     =========    =========     =========    =========     =========
</TABLE>



                                       36
<PAGE>


                                PURINA MILLS, LLC

                           CONSOLIDATED BALANCE SHEETS

<TABLE>
<CAPTION>
                                                                    JUNE 30,      DECEMBER 31,
                                                                      2003            2002
                                                                    --------      ------------
                                                                        ($ IN THOUSANDS)
                                                                   (UNAUDITED)
<S>                                                                <C>            <C>
ASSETS

Current assets:
  Cash and short-term investments ..........................        $    205        $  6,654
  Receivables, net .........................................             828          23,990
  Receivable from legal settlement .........................              --           6,000
  Inventories ..............................................           1,418          47,620
  Prepaid expenses and other current assets ................           3,188           4,079
  Note receivable from Land O'Lakes Farmland Feed LLC ......              --          57,759
                                                                    --------        --------
          Total current assets .............................           5,639         146,102

Investments ................................................           2,040           5,491
Property, plant and equipment, net .........................         134,398         156,291
Goodwill ...................................................              60         105,202
Other intangibles ..........................................              --          94,044
Other assets ...............................................              --          21,547
                                                                    --------        --------
          Total assets .....................................        $142,137        $528,677
                                                                    ========        ========

LIABILITIES AND EQUITIES

Current liabilities:
  Accounts payable .........................................              17          53,308
  Accrued expenses .........................................             942          24,995
                                                                    --------        --------
          Total current liabilities ........................             959          78,303

Employee benefits and other liabilities ....................           1,187          29,493
Minority interests .........................................              21              29

Equities:
  Contributed capital ......................................          93,045         367,288
  Retained earnings ........................................          46,925          53,564
                                                                    --------        --------
          Total equities ...................................         139,970         420,852
                                                                    --------        --------
Commitments and contingencies
Total liabilities and equities .............................        $142,137        $528,677
                                                                    ========        ========
</TABLE>


          See accompanying notes to consolidated financial statements.



                                       37
<PAGE>

                                PURINA MILLS, LLC

                      CONSOLIDATED STATEMENTS OF OPERATIONS

<TABLE>
<CAPTION>
                                                     FOR THE THREE MONTHS ENDED          FOR THE SIX MONTHS ENDED
                                                              JUNE 30,                            JUNE 30,
                                                       2003             2002              2003             2002
                                                     --------         ---------         --------         ---------
                                                                          ($ IN THOUSANDS)
                                                                             (UNAUDITED)
<S>                                                  <C>              <C>               <C>              <C>
Net sales ...................................        $ 15,685         $ 199,919         $ 28,313         $ 414,782
Cost of sales ...............................          19,965           164,079           36,615           342,073
                                                     --------         ---------         --------         ---------
Gross profit (loss) .........................          (4,280)           35,840           (8,302)           72,709

Selling, general and administrative .........           1,692            29,741            1,908            57,554
                                                     --------         ---------         --------         ---------
(Loss) earnings from operations .............          (5,972)            6,099          (10,210)           15,155

Interest (income) expense, net ..............              --              (276)               3              (564)
Gain on legal settlements ...................          (2,134)               --           (3,002)               --
Gain on sale of investment ..................            (346)               --             (846)               --
Equity in loss of affiliated companies ......             279               416              282               577
Minority interest in earnings (loss) of
  subsidiaries ..............................              --                 2               (8)               69
                                                     --------         ---------         --------         ---------
Net (loss) earnings .........................        $ (3,771)        $   5,957         $ (6,639)        $  15,073
                                                     ========         =========         ========         =========
</TABLE>


          See accompanying notes to consolidated financial statements.


                                       38
<PAGE>

                                PURINA MILLS, LLC

                      CONSOLIDATED STATEMENTS OF CASH FLOWS

<TABLE>
<CAPTION>
                                                                          FOR THE SIX MONTHS ENDED
                                                                                  JUNE 30,
                                                                           2003             2002
                                                                         --------         --------
                                                                             ($ IN THOUSANDS)
                                                                                (UNAUDITED)
<S>                                                                      <C>              <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
  Net (loss) earnings ...........................................        $ (6,639)        $ 15,073
  Adjustments to reconcile net (loss) earnings to net cash
     provided by operating activities:
     Depreciation and amortization ..............................          12,133           15,930
     Increase in other assets ...................................              --           (3,266)
     (Decrease) increase in other liabilities ...................            (463)             970
     Equity in loss of affiliated companies .....................             282              577
     Minority interest ..........................................              (8)              69
     Gain on sale of investment .................................            (846)              --
     Loss on sale of property, plant and equipment ..............           1,391               --
     Other ......................................................             334               --
  Changes in current assets and liabilities, net of
     acquisitions and divestitures:
     Receivables ................................................             521            7,904
     Inventories ................................................           1,086            2,308
     Other current assets .......................................             929            1,163
     Accounts payable ...........................................            (618)          (8,129)
     Accrued expenses ...........................................            (930)          (1,681)
                                                                         --------         --------
  Net cash provided by operating activities .....................           7,172           30,918

CASH FLOWS FROM INVESTING ACTIVITIES:
  Additions to property, plant and equipment ....................              --           (4,735)
  Payments for investments ......................................              --              (22)
  Dividends from affiliated companies ...........................             375               --
  Proceeds from sale of investments .............................           3,000              397
  Proceeds from sale of property, plant and equipment ...........           1,141               --
                                                                         --------         --------
    Net cash provided (used) by investing activities ............           4,516           (4,360)

CASH FLOWS FROM FINANCING ACTIVITIES:
  Payments on note payable to Land O'Lakes
     Farmland Feed LLC ..........................................              --          (35,111)
  Cash distribution to parent ...................................         (18,137)              --
  Other .........................................................              --               56
                                                                         --------         --------
  Net cash used by financing activities .........................         (18,137)         (35,055)
                                                                         --------         --------
  Net decrease in cash and short-term investments ...............          (6,449)          (8,497)

Cash and short-term investments at beginning of period ..........           6,654           14,370
                                                                         --------         --------
Cash and short-term investments at end of period ................        $    205         $  5,873
                                                                         ========         ========
</TABLE>

          See accompanying notes to consolidated financial statements.



                                       39
<PAGE>

                                PURINA MILLS, LLC

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                           ($ IN THOUSANDS IN TABLES)
                                   (UNAUDITED)

1.       ORGANIZATION

         Purina Mills, LLC ("the Company") was established in October, 2001
through the merger of Purina Mills, Inc. with a wholly-owned subsidiary of Land
O'Lakes, Inc. As a result of the merger, Purina Mills, Inc. was reorganized as a
limited liability company, renamed Purina Mills, LLC, and was contributed to
Land O'Lakes Farmland Feed LLC ("Land O'Lakes Farmland Feed") on October 11,
2001.

         Since October 2001, Land O'Lakes Farmland Feed has been integrating the
Company's operations into its own to decrease operating costs and to generate
other integration-related synergies. In January 2003, Nestle Purina PetCare
Company ("NPPC") consented to the transfer of the Purina license from the
Company to Land O'Lakes Farmland Feed. This transfer granted Land O'Lakes
Farmland Feed the exclusive right to use the Purina, Chow and the "Checkerboard"
Nine Square logo on a perpetual, royalty-free basis. In connection with the
transfer of the Purina license beginning January 1, 2003, the Company also
transferred most of its operations and distributed most of its net assets to its
parent, Land O'Lakes Farmland Feed. At June 30, 2003, the Company still owns a
significant amount of property, plant, and equipment assets which generated no
revenue for the Company, as these assets are operated and controlled by Land
O'Lakes Farmland Feed.

2.       STATEMENT PRESENTATION

         The consolidated financial statements include the accounts of the
Company and wholly-owned and majority-owned subsidiaries and limited liability
companies. Intercompany balances and transactions have been eliminated. The
Company's parent company, Land O'Lakes Farmland Feed, conducts its operations
using property, plant, and equipment assets of the Company. Accordingly, the
consolidated financial statements reflect depreciation expense associated with
these assets for which no reimbursement is received from the parent company.

3.       SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

         The unaudited consolidated financial statements reflect, in the opinion
of the management of Purina Mills, LLC, all normal recurring adjustments
necessary for a fair statement of the financial position and results of
operations and cash flows for the interim periods. The statements are condensed,
and therefore do not include all of the information and footnotes required by
accounting principles generally accepted in the United States of America for
complete financial statements. For further information, refer to the audited
consolidated financial statements and footnotes for the year ended December 31,
2002 included in our Annual Report on Form 10-K. The results of operations and
cash flows for interim periods are not necessarily indicative of results for a
full year.

4.       SUPPLEMENTAL CASH FLOW INFORMATION

         On January 1, 2003, in connection with the transfer of the Purina
license, the Company distributed net assets to Land O'Lakes Farmland Feed
through a non-cash transaction. These net assets totaled $256.1 million and are
summarized as follows:

<TABLE>
<CAPTION>
                                                                      AT
                                                                   JANUARY 1,
                                                                     2003
                                                                   ---------
              <S>                                                  <C>
              Current assets ..............................        $ 131,911
              Investments..................................            1,142
              Property, plant, and equipment, net .........            6,015
              Goodwill and other intangibles, net .........          199,186
              Other assets ................................           21,491
              Current liabilities .........................          (75,796)
              Other noncurrent liabilities ................          (27,843)
                                                                   ---------
              Total  net assets distributed ...............        $ 256,106
                                                                   =========
</TABLE>



                                       40
<PAGE>
5.       RECEIVABLES

         A summary of receivables is as follows:

<TABLE>
<CAPTION>

                                                                       JUNE 30,     DECEMBER 31,
                                                                         2003           2002
                                                                       -------      -----------
               <S>                                                     <C>          <C>
               Trade receivables ..............................        $   192        $   345
               Notes from sale of trade receivables (see
                 Note 6).......................................             --         26,717
               Other ..........................................            661          3,002
                                                                       -------        -------
                                                                           853         30,064
               Less allowance for doubtful accounts ...........             25          6,074
                                                                       -------        -------
               Total receivables, net .........................        $   828        $23,990
                                                                       =======        =======
</TABLE>


6.       RECEIVABLES PURCHASE FACILITY

         In December 2001, the Company along with Land O'Lakes, Inc. and Land
O'Lakes Farmland Feed, established a $100.0 million receivables purchase
facility with CoBank, ACB ("CoBank"). A wholly-owned, unconsolidated special
purpose entity ("SPE") was established to purchase certain receivables from the
Company, Land O'Lakes and Land O'Lakes Farmland Feed. CoBank had been granted an
interest in the pool of receivables owned by the SPE. Transfers of receivables
from the Company to the SPE were structured as sales and, accordingly, the
receivables transferred to the SPE were not reflected in the consolidated
balance sheet. In 2003, the Company's receivables, except for receivables of its
wholly-owned and majority-owned subsidiaries and limited liability companies,
were distributed to the parent company, Land O'Lakes Farmland Feed. The total
accounts receivable sold by the Company during the six months ended June 30,
2003 and 2002 were $0.0 million and $458.4 million, respectively.

7.       INVENTORIES

         A summary of inventories is as follows:

<TABLE>
<CAPTION>
                                                                      JUNE 30,     DECEMBER 31,
                                                                        2003          2002
                                                                      --------     ------------
               <S>                                                    <C>          <C>
               Raw materials ..................................        $   674         $33,207
               Finished goods .................................            744          14,413
                                                                       -------         -------
               Total inventories ..............................        $ 1,418         $47,620
                                                                       =======         =======
</TABLE>


8.       INVESTMENTS

         The Company's investments are as follows:
<TABLE>
<CAPTION>
                                                                      JUNE 30,     DECEMBER 31,
                                                                        2003          2002
                                                                      --------      ---------
               <S>                                                    <C>           <C>
               Y-Not, LLC .....................................        $   655        $   579
               Eastern Block, Inc. ............................            516            524
               Eastgate Feed and Grain, LLC ...................            333            296
               Harmony Farms, LLC .............................             --          2,435
               ESSV, LLC ......................................             --            893
               Other ..........................................            536            764
                                                                       -------        -------
               Total investments ..............................        $ 2,040        $ 5,491
                                                                       =======        =======
</TABLE>


During the six months ended June 30, 2003, the Company sold its interest in
Harmony Farms, LLC and ESSV, LLC for $3.0 million in cash and recorded a $0.8
million gain on the sale. On January 1, 2003 certain other investments were
distributed to the Company's parent, Land O'Lakes Farmland Feed.

9.       GOODWILL AND OTHER INTANGIBLE ASSETS

GOODWILL The changes in the carrying amount of goodwill for the six months ended
June 30, 2003, are as follows:

<TABLE>
         <S>                                                 <C>
         Balance as of January 1, 2003..........             $   105,202
         Distribution to parent company.........                (105,142)
                                                             -----------
         Balance as of June 30, 2003............             $        60
                                                             ===========
</TABLE>



                                       41
<PAGE>


         On January 1, 2003, goodwill for the Company was distributed to the
parent company, Land O'Lakes Farmland Feed.

OTHER INTANGIBLE ASSETS A summary of other intangible assets is as follows:

<TABLE>
<CAPTION>

                                                                                                       JUNE 30,     DECEMBER 31,
                                                                                                         2003          2002
                                                                                                       -------      -----------
     <S>                                                                                               <C>          <C>
     Amortized other intangible assets:
       Patents, less accumulated amortization of $0 and $1,395, respectively ..................        $    --        $14,978
       Other intangible assets, less accumulated amortization of $0 and $670, respectively ....             --          2,103
                                                                                                       -------        -------
     Total amortized other intangible assets ..................................................             --         17,081
     Total non-amortized other intangible assets-trademarks ...................................             --         76,963
                                                                                                       -------        -------
     Total other intangible assets ............................................................        $    --        $94,044
                                                                                                       =======        =======
</TABLE>

         Amortization expense for the six months ended June 30, 2003 and 2002
was $0.0 million and $1.0 million, respectively. On January 1, 2003, other
intangible assets of the Company were distributed to the parent company, Land
O'Lakes Farmland Feed.

10.      GAIN ON LEGAL SETTLEMENTS

         The Company recognized a gain on legal settlements of $3.0 million and
$0.0 million for the six months ended June 30, 2003 and 2002, respectively,
related to the litigation with vitamin product suppliers against whom the
Company alleged certain price-fixing claims.

11.      COMMITMENTS AND CONTINGENCIES

GUARANTEE OF PARENT DEBT

         In November 2001, Land O'Lakes, Inc. issued $350 million of senior
unsecured notes, due 2011. The notes are guaranteed by the Company and by
certain of its domestic wholly-owned subsidiaries.

         This guarantee is a general unsecured obligation, ranks equally in
right of payment with all existing and future senior indebtedness of Land
O'Lakes, is senior in right of payment to all existing and future subordinated
obligations of Land O'Lakes, and is effectively subordinated to any secured
indebtedness of Land O'Lakes and its subsidiaries, including the Company, to the
extent of the value of the assets securing such indebtedness. The maximum
potential amount of future payments that the Company would be required to make
is $350 million as of June 30, 2003. Currently, the Company does not record a
liability regarding the guarantee. The Company has no recourse provision that
would enable it to recover amounts paid under the guarantee from Land O'Lakes,
Inc. or any other parties.

         The notes are not guaranteed by certain majority-owned subsidiaries of
the Company (the "Non-Guarantors"). Summarized financial information of the
Non-Guarantors, which is consolidated in the financial statements of the
Company, as of and for the periods indicated, are as follows:

<TABLE>
<CAPTION>
                                                                         SIX
                                                                     MONTHS ENDED    YEAR ENDED
                                                                       JUNE 30,     DECEMBER 31,
                                                                         2003           2002
                                                                     ------------   ------------
               <S>                                                   <C>            <C>
               Total assets ...................................        $ 1,929        $ 1,933
               Net sales ......................................          2,118          1,859
               Net loss .......................................            (20)          (625)
</TABLE>


         In November 2001, Land O'Lakes, Inc. entered into term facilities
consisting of a $325 million five-year Term Loan A facility and a $250 million
seven-year Term Loan B facility. These facilities are unconditionally guaranteed
by the Company and certain of its wholly-owned subsidiaries. The maximum
potential payment related to this guarantee is $448 million as of June 30, 2003.
The Company does not currently record a liability related to the


                                       42
<PAGE>

guarantee of the Term Loans, and the Company has no recourse provisions that
would enable it to recover from Land O'Lakes, Inc. or any other parties.

12.      RELATED PARTY TRANSACTIONS

         The Company records depreciation expense for property, plant, and
equipment assets which are used by the parent company, Land O'Lakes Farmland
Feed, to conduct its business. The Company receives no reimbursement for this
expense, which was $12.1 million for the six months ended June 30, 2003.

         For the six months ended June 30, 2003, the Company did not pay for
certain selling, general and administrative expenses. These costs include sales
and marketing support, corporate and other administrative and management costs
which were paid for and expensed by Land O'Lakes Farmland Feed.



                                       43
<PAGE>


 PART II. OTHER INFORMATION

ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K

(A)      EXHIBITS

<TABLE>
<CAPTION>
         EXHIBIT            DESCRIPTION
         <S>                <C>
          31.1              Certification Pursuant to 15 U.S.C. Section 7241, as adopted
                            pursuant to Section 302 of the Sarbanes-Oxley Act of 2002*
          31.2              Certification Pursuant to 15 U.S.C. Section 7241, as adopted
                            pursuant to Section 302 of the Sarbanes-Oxley Act of 2002*
          32.1              Certification Pursuant to 18 U.S.C. Section 1350, As Adopted
                            Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002*
          32.2              Certification Pursuant to 18 U.S.C. Section 1350, As Adopted
                            Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002*
</TABLE>



*  Filed electronically herewith


                                       44
<PAGE>


                                   SIGNATURES


         Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized on the 26th day of April, 2004.

                           LAND O'LAKES, INC.


                           By  /s/ Daniel Knutson
                              --------------------------------------------------
                               Daniel Knutson
                               Senior Vice President and Chief Financial Officer
                               (Principal Financial and Accounting Officer)



                                       45