Exhibit 99

CAUTIONARY STATEMENT

         Harvest States Cooperatives (the "Company"), or persons acting on
behalf of the Company, or outside reviewers retained by the Company making
statements on behalf of the Company, or underwriters, from time to time, may
make, in writing or orally, "forward-looking statements" as defined under the
Private Securities Litigation Reform Act of 1995 (the "Act"). This Cautionary
Statement is for the purpose of qualifying for the "safe harbor" provisions of
the Act and is intended to be a readily available written document that contains
factors which could cause results to differ materially from those projected in
such forward-looking statements. These factors are in addition to any other
cautionary statements, written or oral, which may be made or referred to in
connection with any such forward-looking statement.

         The following matters, among others, may have a material adverse effect
on the business, financial condition, liquidity, results of operations or
prospects, financial or otherwise, of the Company. Reference to this Cautionary
Statement in the context of a forward-looking statement shall be deemed to be a
statement that any one or more of the following factors may cause actual results
to differ materially from those which might be projected, forecast, estimated or
budgeted by the Company in such forward-looking statement or statements:

         COMPANY SUBJECT TO SUPPLY AND DEMAND FORCES. The Company may be
adversely affected by supply and demand relationships, both domestic and
international. Supply is affected by weather conditions, disease, insect damage,
acreage planted, government regulation and policies and commodity price levels.
The business is also affected by transportation conditions, including rail,
vessel, barge and truck. Demand may be affected by foreign governments and their
programs, relationships of foreign countries with the United States, the
affluence of foreign countries, acts of war, currency exchange fluctuations and
substitution of commodities. Demand may also be affected by changes in eating
habits, by population growth and increased or decreased per capita consumption
of some products.

         The Freedom to Farm Act of 1996, enacted in April 1996, may affect crop
production in several ways. The Act more narrowly defines what will qualify as
environmentally sensitive acreage for purposes of the conservation reduction
program, with the result that 3 to 4 million acres may be put back into
agricultural production in the future from a present enrollment of 36.4 million
acres. The Act also removes restrictions on the type of crops planted (other
than fruit and vegetables), allowing farmers to plant crops having favorable
prices and thereby increasing the production of those crops. Increased
production may lower prices of certain crops but increase the amount available
for export. However, the Act also reduces Export Enhancement Program subsidies,
which may adversely affect the ability of U.S. exports to compete with those of
other countries.

         COMPANY SUBJECT TO PRICE RISKS. Upon purchase, the Company has risks of
carrying grain, including price changes and performance risks (including
delivery, quality, quantity and shipment period), depending upon the type of
purchase contract entered into. The Company is exposed to risk of loss in the
market value of positions held, consisting of grain inventory and purchase
contracts at a fixed or partially fixed price, in the event market prices
decrease. The Company is also exposed to risk of loss on its fixed price or
partially fixed price sales contracts in the event market prices increase.

         To reduce the price change risks associated with holding fixed price
positions, the

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Company generally takes opposite and offsetting positions by entering into grain
commodity futures contracts (either a straight futures contract or an options
futures contract) on regulated commodity futures exchanges. While hedging
activities reduce the risk of loss from changing market values of grain, such
activities also limit the gain potential which otherwise could result from
changes in market prices of grain. Hedging arrangements do not protect against
nonperformance of a contract. The Company's policy is to generally maintain
hedged positions in grain which is hedgeable, but the Company can be long or
short at any time. The Company's profitability is primarily derived from margins
on grain merchandised and processed, not from hedging transactions. 

         At any one time the Company's inventory and purchase contract for
delivery to the Company may be substantial.

         OILSEED PROCESSING AND REFINING BUSINESS COMPETITION. Competition in
the soybean processing and refining business is driven by price, transportation
costs, service and product quality. The industry is highly competitive.
Competitors are adding new plants and expanding capacity of existing plants.
Media newsletters and other publications indicate that new crush plants and
refinery operations are being constructed or under strong consideration. Should
those facilities be constructed, the Company estimates that domestic crush
capacity would increase from 10 to 15% and domestic refining capacity would
increase from 20 to 30%. Unless exports increase or existing refineries are
closed, this extra capacity is likely to put additional pressure on prices and
erode margins, adversely affecting the profitability of the Oilseed Processing
and Refining Defined Business Unit. Several competitors operate over various
market segments and may be suppliers to or customers of other competitors.

         MILLING BUSINESS COMPETITIVE TRENDS. Certain major competitors of the
Wheat Milling Defined Business Unit have developed long-term relationships with
customers by locating plants adjacent to pasta manufacturing plants. This trend
could potentially decrease the future demand for semolina from nonintegrated
millers.

         TAXATION OF COOPERATIVES COULD CHANGE. Although under Subchapter T of
the Internal Revenue Code patronage refunds are excluded in determining taxable
income of a cooperative and patronage refunds are taxable to the recipient,
current income tax laws, regulations and interpretations pertaining to the
receipt of patronage refunds could be changed.

         DEPENDENCE ON CERTAIN CUSTOMERS. Each of the Wheat Milling Defined
Business Unit and the Oilseed Processing and Refining Defined Business Unit has
certain major customers. Loss of or a decline in the business done with one or
more of these customers could have a material adverse effect on the operations
of the affected Defined Business Unit. In addition, the Wheat Milling Defined
Business Unit would be adversely affected by a decline in pasta production in
the United States.

         The foregoing review of factors pursuant to the Act should not be
construed as exhaustive or as any admission regarding the adequacy of
disclosures made by the Company prior to the effective date of the Act.