Document:

<PAGE>

                                                                     Exhibit 4.7

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                              GUARANTEE AGREEMENT

                                    between

                   SOUTHERN STATES COOPERATIVE, INCORPORATED
                                 as Guarantor

                                      and

                          FIRST UNION NATIONAL BANK,
                             as Guarantee Trustee

                                  relating to

                       Southern States Capital Trust II

                               _________________

                          Dated as of _________, 2000

                               _________________

================================================================================
<PAGE>

                               TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                            Page
<S>                                                                         <C>
                                   ARTICLE I
                                  Definitions

Section 1.1.  Definitions..................................................   1

                                   ARTICLE II
                              Trust Indenture Act

Section 2.1.  Trust Indenture Act; Application.............................   5
Section 2.2.  List of Holders..............................................   5
Section 2.3.  Reports by the Guarantee Trustee.............................   6
Section 2.4.  Periodic Reports to the Guarantee Trustee....................   6
Section 2.5.  Evidence of Compliance with Conditions Precedent.............   6
Section 2.6.  Events of Default; Waiver....................................   6
Section 2.7.  Event of Default; Notice.....................................   7
Section 2.8.  Conflicting Interests........................................   7

                                  ARTICLE III
              Powers, Duties and Rights of the Guarantee Trustee

Section 3.1.  Powers and Duties of the Guarantee Trustee...................   7
Section 3.2.  Certain Rights of Guarantee Trustee..........................   9
Section 3.3.  Compensation; Indemnity; Fees................................  10

                                   ARTICLE IV
                               Guarantee Trustee

Section 4.1.  Guarantee Trustee; Eligibility...............................  11
Section 4.2.  Appointment, Removal and Resignation of the Guarantee
              Trustee......................................................  12

                                   ARTICLE V
                                   Guarantee

Section 5.1.  Guarantee....................................................  13
Section 5.2.  Waiver of Notice and Demand..................................  13
Section 5.3.  Obligations Not Affected.....................................  13
</TABLE>
<PAGE>

<TABLE>
<S>                                                                          <C>
Section 5.4.  Rights of Holders............................................  14
Section 5.5.  Guarantee of Payment.........................................  14
Section 5.6.  Subrogation..................................................  15
Section 5.7.  Independent Obligations......................................  15

                                   ARTICLE VI
                          Covenants and Subordination

Section 6.1.  Subordination................................................  15
Section 6.2.  Pari Passu Guarantees........................................  15

                                  ARTICLE VII
                                  Termination

Section 7.1.  Termination..................................................  16

                                  ARTICLE VIII
                                 Miscellaneous

Section 8.1.  Successors and Assigns.......................................  16
Section 8.2.  Amendments...................................................  17
Section 8.3.  Notices......................................................  17
Section 8.4.  Benefit......................................................  18
Section 8.5.  Governing Law................................................  18
Section 8.6.  Counterparts.................................................  18
</TABLE>
<PAGE>

                            CROSS REFERENCE TABLE/*/

<TABLE>
<CAPTION>
Section of
Trust Indenture Act                                    Section of
of 1939, as amended                                Guarantee Agreement
-------------------                                -------------------
<S>                                                <C>
310 (a)...........................................        4.1(a)
310 (b)...........................................   4.1(c), 2.8
310 (c)...........................................  Inapplicable
311 (a)...........................................         2.2(b)
311 (b)...........................................         2.2(b)
311 (c)...........................................   Inapplicable
312 (a)...........................................         2.2(a)
312 (b)...........................................         2.2(b)
313...............................................            2.3
314 (a)...........................................            2.4
314 (b)...........................................   Inapplicable
314 (c)...........................................            2.5
314 (d)...........................................   Inapplicable
314 (e)...........................................  1.1, 2.5, 3.2
314 (f)...........................................       2.1, 3.2
315 (a)...........................................         3.1(d)
315 (b)...........................................            2.7
315 (c)...........................................            3.1
315 (d)...........................................         3.1(d)
316 (a)...........................................  1.1, 2.6, 5.4
316 (b)...........................................            5.3
316 (c)...........................................            8.2
317 (a)...........................................   Inapplicable
317(b)............................................   Inapplicable
318(a)............................................            2.1
318(b)............................................            2.1
318(b)............................................            2.1
</TABLE>

______________________
/*/  This Cross Reference Table does not constitute part of the Guarantee
     Agreement and shall not affect the interpretation of any of its terms or
     provisions.
<PAGE>

          GUARANTEE AGREEMENT, dated as of __________, 2000, between SOUTHERN
STATES COOPERATIVE, INCORPORATED, an agricultural cooperative corporation
organized under the laws of Virginia (the "Guarantor"), having its principal
office at 6606 West Broad Street, Richmond, Virginia 23260 and FIRST UNION
NATIONAL BANK, a national banking association,  as trustee (the "Guarantee
Trustee"), for the benefit of the Holders (as defined herein) from time to time
of the Capital Securities (as defined herein) of Southern States Capital Trust
II, a Delaware statutory business trust (the "Issuer Trust").

                          Recitals of the Corporation

     Whereas, pursuant to an Amended and Restated Trust Agreement, dated as of
________, 2000, among Southern States Cooperative, Incorporated, as Depositor,
First Union National Bank, as Property Trustee, First Union Trust Company,
National Association, as Delaware Trustee, and the Administrative Trustees named
therein, the Issuer Trust is issuing up to $86,250,000 aggregate Liquidation
Amount (as defined in the Trust Agreement) of its _____% Capital Securities,
Series A (liquidation amount $25 per capital security) (the "Capital
Securities"), representing preferred undivided beneficial interests in the
assets of the Issuer Trust and having the terms set forth in the Trust
Agreement; and

     Whereas, the Capital Securities will be issued by the Issuer Trust and the
proceeds thereof, together with the proceeds from the issuance of the Issuer
Trust's Common Securities (as defined herein), will be used to purchase the
Debentures (as defined in the Trust Agreement) of the Guarantor, which
Debentures will be deposited with First Union  National Bank, as Property
Trustee under the Trust Agreement, as trust assets; and

     Whereas, as an incentive for the Holders to purchase Capital Securities,
the Guarantor desires irrevocably and unconditionally to agree, to the extent
set forth herein, to pay to the Holders of the Capital Securities the Guarantee
Payments (as defined herein) on the terms and conditions set forth herein.

     Now, Therefore, in consideration of the purchase of Capital Securities by
each Holder, which purchase the Guarantor hereby acknowledges will benefit the
Guarantor, the Guarantor executes and delivers this Guarantee Agreement for the
benefit of the Holders from time to time.
<PAGE>

                                   ARTICLE I

                                  Definitions

     Section 1.1. Definitions.

     For all purposes of this Guarantee Agreement, except as otherwise expressly
provided or unless the context otherwise requires:

     (a) The terms defined in this Article have the meanings assigned to them in
this Article, and include the plural as well as the singular;

     (b) All other terms used herein that are defined in the Trust Indenture
Act, either directly or by reference therein, have the meanings assigned to them
therein;

     (c) The words "include", "includes" and "including" shall be deemed to be
followed by the phrase "without limitation";

     (d) All accounting terms used but not defined herein have the meanings
assigned to them in accordance with United States generally accepted accounting
principles;

     (e) Unless the context otherwise requires, any reference to an "Article" or
a "Section" refers to an Article or a Section, as the case may be, of this
Guarantee Agreement; and

     (f) The words "hereby", "herein", "hereof" and "hereunder" and other words
of similar import refer to this Guarantee Agreement as a whole and not to any
particular Article, Section or other subdivision.

     "Affiliate" of any specified Person means any other Person directly or
indirectly controlling or controlled by or under direct or indirect common
control with such specified Person. For the purposes of this definition,
"control", when used with respect to any specified Person, means the power to
direct the management and policies of such Person, directly or indirectly,
whether through the ownership of voting securities, by contract or otherwise;
and the terms "controlling" and "controlled" have meanings correlative to the
foregoing.

     "Board of Directors" means the board of directors of the Guarantor or the
Executive Committee of the board of directors of the Guarantor (or any other
committee of the board of directors of the Guarantor performing similar
functions) or a committee designated by the board of directors of the Guarantor
(or such committee), comprised of two or more members of the board of directors
of the Guarantor or officers of the Guarantor, or both.

     "Capital Securities" has the meaning specified in the recitals to this
Guarantee Agreement.
<PAGE>

     "Common Securities" means the securities representing common undivided
beneficial interests in the assets of the Issuer Trust.

     "Event of Default" means (i) a default by the Guarantor in any of its
payment obligations under this Guarantee Agreement or (ii) a default by the
Guarantor in any other obligation hereunder that remains unremedied for 30 days.

     "Guarantee Agreement" means this Guarantee Agreement, as modified, amended
or supplemented from time to time.

     "Guarantee Payments" means the following payments or distributions, without
duplication, with respect to the Capital Securities, to the extent not paid or
made by or on behalf of the Issuer Trust: (i) any accumulated and unpaid
Distributions (as defined in the Trust Agreement) required to be paid on the
Capital Securities, to the extent the Issuer Trust shall have funds on hand
available therefor at such time; (ii) the Redemption Price (as defined in the
Trust Agreement) with respect to any Capital Securities called for redemption by
the Issuer Trust, to the extent the Issuer Trust shall have funds on hand
available therefor at such time; and (iii) upon a voluntary or involuntary
dissolution, winding-up or liquidation of the Issuer Trust, unless Debentures
are distributed to the Holders, the lesser of (a) the Liquidation Distribution
(as defined in the Trust Agreement) with respect to the Capital Securities, and
(b) the amount of assets of the Issuer Trust remaining available for
distribution to Holders on liquidation of the Issuer after satisfaction of
liabilities to creditors of the Issuer Trust as required by applicable law.

     "Guarantee Trustee" means First Union National Bank, solely in its capacity
as Guarantee Trustee and not in its individual capacity, until a Successor
Guarantee Trustee has been appointed and has accepted such appointment pursuant
to the terms of this Guarantee Agreement, and thereafter means each such
Successor Guarantee Trustee.

     "Guarantor" has the meaning specified in the first paragraph of this
Guarantee Agreement.

     "Holder" means any Holder (as defined in the Trust Agreement) of any
Capital Securities; provided, however, that in determining whether the holders
of the requisite percentage of Capital Securities have given any request,
notice, consent or waiver hereunder, "Holder" shall not include the Guarantor,
the Guarantee Trustee, or any Affiliate of the Guarantor or the Guarantee
Trustee.

     "Indenture" means the Junior Subordinated Indenture, dated as of
__________, 2000, between Southern States Cooperative, Incorporated and First
Union National Bank, as trustee, as the same may be modified, amended or
supplemented from time to time.

     "Issuer Trust" has the meaning specified in the first paragraph of this
Guarantee Agreement.

     "List of Holders" has the meaning specified in Section 2.2(a).

                                      -3-
<PAGE>

     "Majority in Liquidation Amount of the Capital Securities" means, except as
provided by the Trust Indenture Act, Capital Securities representing more than
50% of the aggregate Liquidation Amount (as defined in the Trust Agreement) of
all Capital Securities then Outstanding (as defined in the Trust Agreement).

     "Officers' Certificate" means a certificate signed by the Chairman or a
Vice Chairman of the Board of Directors of the Guarantor or the President or a
Vice President of the Guarantor, and by the Treasurer, an Assistant Treasurer,
the Secretary or an Assistant Secretary of the Guarantor, and delivered to the
Guarantee Trustee. Any Officers' Certificate delivered with respect to
compliance with a condition or covenant provided for in this Guarantee Agreement
shall include:

          (a) a statement by each officer signing the Officers' Certificate that
     such officer has read the covenant or condition and the definitions
     relating thereto;

          (b) a brief statement of the nature and scope of the examination or
     investigation undertaken by such officer in rendering the Officers'
     Certificate;

          (c) a statement that such officer has made such examination or
     investigation as, in such officer's opinion, is necessary to enable such
     officer to express an informed opinion as to whether or not such covenant
     or condition has been complied with; and

          (d) a statement as to whether, in the opinion of such officer, such
     condition or covenant has been complied with.

     "Person" means a legal person, including any individual, corporation,
estate, partnership, joint venture, association, joint-stock company, company,
limited liability company, trust, business trust, unincorporated association, or
government or any agency or political subdivision thereof, or any other entity
of whatever nature.

     "Responsible Officer" means, with respect to the Guarantee Trustee, any
Senior Vice President, any Vice President, any Assistant Vice President, the
Secretary, any Assistant Secretary, the Treasurer, any Assistant Treasurer, any
Trust Officer or Assistant Trust Officer or any other officer of the Corporate
Trust Department of the Guarantee Trustee and also means, with respect to a
particular matter, any other officer to whom such matter is referred because of
that officer's knowledge of and familiarity with the particular subject.

     "Successor Guarantee Trustee" means a successor Guarantee Trustee
possessing the qualifications to act as Guarantee Trustee under Section 4.1.

     "Trust Agreement" means the Amended and Restated Trust Agreement of the
Issuer Trust referred to in the recitals to this Guarantee Agreement, as
modified, amended or supplemented from time to time.

                                      -4-
<PAGE>

     "Trust Indenture Act" means the Trust Indenture Act of 1939 as in force at
the date as of which this Guarantee Agreement was executed; provided, however,
that if the Trust Indenture Act of 1939 is amended after such date, "Trust
Indenture Act" means, to the extent required by any such amendment, the Trust
Indenture Act of 1939 as so amended.

                                  ARTICLE II

                              Trust Indenture Act

     Section 2.1. Trust Indenture Act; Application.

     (a) This Guarantee Agreement is subject to the provisions of the Trust
Indenture Act that are required to be part of this Guarantee Agreement and
shall, to the extent applicable, be governed by such provisions.

     (b) If and to the extent that any provisions of this Guarantee Agreement
limits, qualifies or conflicts with the duties imposed by Sections 310 to 317,
inclusive, of the Trust Indenture Act through operation of Section 318(c)
thereof, such imposed duties shall control.  If any provision of this Guarantee
Agreement modifies or excludes any provision of the Trust Indenture Act which
may be so modified or excluded, the latter provision shall be deemed to apply to
this Guarantee Agreement as so modified or to be excluded, as the case may be.

     Section 2.2. List of Holders.

     (a) The Guarantor shall furnish or cause to be furnished to the Guarantee
Trustee (a) semiannually, on or before June 30 and December 31 of each year, a
list, in such form as the Guarantee Trustee may reasonably require, of the names
and addresses of the Holders (a "List of Holders") as of a date not more than 15
days prior to the delivery thereof, and (b) at such other times as the Guarantee
Trustee may request in writing, within 30 days after the receipt by the
Guarantor of any such request, a List of Holders as of a date not more than 15
days prior to the time such list is furnished, in each case to the extent such
information is in the possession or control of the Guarantor and has not
otherwise been received by the Guarantee Trustee in its capacity as such. The
Guarantee Trustee may destroy any List of Holders previously given to it on
receipt of a new List of Holders.

     (b) The Guarantee Trustee shall comply with the requirements of Section
311(a), Section 311(b) and Section 312(b) of the Trust Indenture Act.

                                      -5-
<PAGE>

     Section 2.3. Reports by the Guarantee Trustee.

     Not later than 60 days following December 31 of each year, commencing
December 31, 1999, the Guarantee Trustee shall provide to the Holders such
reports as are required by Section 313 of the Trust Indenture Act, if any, in
the form and in the manner provided by Section 313 of the Trust Indenture Act.
The Guarantee Trustee shall also comply with the requirements of Section 313(d)
of the Trust Indenture Act.

     Section 2.4. Periodic Reports to the Guarantee Trustee.

     The Guarantor shall provide to the Guarantee Trustee and the Holders such
documents, reports and information, if any, as required by Section 314 of the
Trust Indenture Act and the compliance certificate required by Section 314 of
the Trust Indenture Act, in the form, in the manner and at the times required by
Section 314 of the Trust Indenture Act, provided that such documents, reports
and information shall not be required to be provided to the Securities and
Exchange Commission unless this Guarantee Agreement shall have been qualified
under the Trust Indenture Act.

     Section 2.5. Evidence of Compliance with Conditions Precedent.

     The Guarantor shall provide to the Guarantee Trustee such evidence of
compliance with such conditions precedent, if any, provided for in this
Guarantee Agreement that relate to any of the matters set forth in Section
314(c) of the Trust Indenture Act. Any certificate or opinion required to be
given by an officer of the Guarantor pursuant to Section 314(c)(1) may be given
in the form of an Officers' Certificate.

     Section 2.6. Events of Default; Waiver.

     The Holders of at least a Majority in Liquidation Amount of the Capital
Securities may, by vote, on behalf of the Holders of all the Capital Securities,
waive any past default or Event of Default and its consequences. Upon such
waiver, any such default or Event of Default shall cease to exist, and any
default or Event of Default arising therefrom shall be deemed to have been
cured, for every purpose of this Guarantee Agreement, but no such waiver shall
extend to any subsequent or other default or Event of Default or impair any
right consequent thereon.

                                      -6-
<PAGE>

     Section 2.7. Event of Default; Notice.

     (a) The Guarantee Trustee shall, within 90 days after the occurrence of an
Event of Default known to it, transmit by mail, first class postage prepaid, to
the Holders, notice of any such Event of Default, unless such Event of Default
has been cured before the giving of such notice, provided that, except in the
case of a default in the payment of a Guarantee Payment, the Guarantee Trustee
shall be protected in withholding such notice if and so long as the board of
directors, the executive committee or a trust committee of directors and/or
Responsible Officers of the Guarantee Trustee in good faith determines that the
withholding of such notice is in the interests of the Holders.

     (b) The Guarantee Trustee shall not be deemed to have knowledge of any
Event of Default unless the Guarantee Trustee shall have received written
notice, or a Responsible Officer charged with the administration of this
Guarantee Agreement shall have obtained actual knowledge, of such Event of
Default.

     Section 2.8. Conflicting Interests.

     The Trust Agreement and the Indenture shall be deemed to be specifically
described in this Guarantee Agreement for the purposes of clause (i) of the
first proviso contained in Section 310(b) of the Trust Indenture Act.

                                  ARTICLE III

              Powers, Duties and Rights of the Guarantee Trustee

     Section 3.1. Powers and Duties of the Guarantee Trustee.

     (a) This Guarantee Agreement shall be held by the Guarantee Trustee for the
benefit of the Holders, and the Guarantee Trustee shall not transfer this
Guarantee Agreement to any Person except to a Successor Guarantee Trustee on
acceptance by such Successor Guarantee Trustee of its appointment to act as
Guarantee Trustee hereunder. The right, title and interest of the Guarantee
Trustee, as such, hereunder shall automatically vest in any Successor Guarantee
Trustee, upon acceptance by such Successor Guarantee Trustee of its appointment
hereunder, and such vesting and cessation of title shall be effective whether or
not conveyancing documents have been executed and delivered pursuant to the
appointment of such Successor Guarantee Trustee.

     (b) If an Event of Default has occurred and is continuing, the Guarantee
Trustee shall enforce this Guarantee Agreement for the benefit of the Holders.

     (c) The Guarantee Trustee, before the occurrence of any Event of Default
and after the curing of all Events of Default that may have occurred, shall
undertake to perform only such duties as are specifically set forth in this
Guarantee Agreement (including pursuant to Section 2.1), and no implied

                                      -7-
<PAGE>

covenants shall be read into this Guarantee Agreement against the Guarantee
Trustee. If an Event of Default has occurred (that has not been cured or waived
pursuant to Section 2.6), the Guarantee Trustee shall exercise such of the
rights and powers vested in it by this Guarantee Agreement, and use the same
degree of care and skill in its exercise thereof, as a prudent person would
exercise or use under the circumstances in the conduct of his or her own
affairs.

     (d) No provision of this Guarantee Agreement shall be construed to relieve
the Guarantee Trustee from liability for its own negligent action, its own
negligent failure to act or its own wilful misconduct, except that:

          (i)   Prior to the occurrence of any Event of Default and after the
     curing or waiving of all such Events of Default that may have occurred:

               (A) the duties and obligations of the Guarantee Trustee shall be
          determined solely by the express provisions of this Guarantee
          Agreement (including pursuant to Section 2.1), and the Guarantee
          Trustee shall not be liable except for the performance of such duties
          and obligations as are specifically set forth in this Guarantee
          Agreement (including pursuant to Section 2.1); and

               (B) in the absence of bad faith on the part of the Guarantee
          Trustee, the Guarantee Trustee may conclusively rely, as to the truth
          of the statements and the correctness of the opinions expressed
          therein, upon any certificates or opinions furnished to the Guarantee
          Trustee and conforming to the requirements of this Guarantee
          Agreement; but in the case of any such certificates or opinions that
          by any provision hereof or of the Trust Indenture Act are specifically
          required to be furnished to the Guarantee Trustee, the Guarantee
          Trustee shall be under a duty to examine the same to determine whether
          or not they conform to the requirements of this Guarantee Agreement.

          (ii)  The Guarantee Trustee shall not be liable for any error of
     judgment made in good faith by a Responsible Officer of the Guarantee
     Trustee, unless it shall be proved that the Guarantee Trustee was negligent
     in ascertaining the pertinent facts upon which such judgment was made.

          (iii) The Guarantee Trustee shall not be liable with respect to any
     action taken or omitted to be taken by it in good faith in accordance with
     the direction of the Holders of not less than a Majority in Liquidation
     Amount of the Capital Securities relating to the time, method and place of
     conducting any proceeding for any remedy available to the Guarantee
     Trustee, or exercising any trust or power conferred upon the Guarantee
     Trustee, under this Guarantee Agreement.

          (iv)  Subject to Section 3.1(b), no provision of this Guarantee
     Agreement shall require the Guarantee Trustee to expend or risk its own
     funds or otherwise incur personal financial

                                      -8-
<PAGE>

     liability in the performance of any of its duties or in the exercise of any
     of its rights or powers, if the Guarantee Trustee shall believe in good
     faith that the repayment of such funds or liability is not reasonably
     assured to it under the terms of this Guarantee Agreement or adequate
     indemnity against such risk or liability is not reasonably assured to it.

     Section 3.2. Certain Rights of Guarantee Trustee.

     (a) Subject to the provisions of Section 3.1:

          (i)   The Guarantee Trustee may rely and shall be fully protected in
     acting or refraining from acting upon any resolution, certificate,
     statement, instrument, opinion, report, notice, request, direction,
     consent, order, bond, debenture, note, other evidence of indebtedness or
     other paper or document reasonably believed by it to be genuine and to have
     been signed, sent or presented by the proper party or parties.

          (ii)  Any direction or act of the Guarantor contemplated by this
     Guarantee Agreement shall be sufficiently evidenced by an Officers'
     Certificate unless otherwise prescribed herein.

          (iii) Whenever, in the administration of this Guarantee Agreement,
     the Guarantee Trustee shall deem it desirable that a matter be proved or
     established before taking, suffering or omitting to take any action
     hereunder, the Guarantee Trustee (unless other evidence is herein
     specifically prescribed) may, in the absence of bad faith on its part,
     request and rely upon an Officers' Certificate which, upon receipt of such
     request from the Guarantee Trustee, shall be promptly delivered by the
     Guarantor.

          (iv)  The Guarantee Trustee may consult with legal counsel, and the
     written advice or opinion of such legal counsel with respect to legal
     matters shall be full and complete authorization and protection in respect
     of any action taken, suffered or omitted to be taken by it hereunder in
     good faith and in accordance with such advice or opinion. Such legal
     counsel may be legal counsel to the Guarantor or any of its Affiliates and
     may be one of its or their employees. The Guarantee Trustee shall have the
     right at any time to seek instructions concerning the administration of
     this Guarantee Agreement from any court of competent jurisdiction.

          (v)   The Guarantee Trustee shall be under no obligation to exercise
     any of the rights or powers vested in it by this Guarantee Agreement at the
     request or direction of any Holder unless such Holder shall have provided
     to the Guarantee Trustee such adequate security and indemnity as would
     satisfy a reasonable person in the position of the Guarantee Trustee
     against the costs, expenses (including attorneys' fees and expenses) and
     liabilities that might be incurred by it in complying with such request or
     direction, including such reasonable advances as may be requested by the
     Guarantee Trustee; provided that nothing contained in this Section
     3.2(a)(v) shall be taken to relieve the Guarantee Trustee, upon the
     occurrence

                                      -9-
<PAGE>

     of an Event of Default, of its obligation to exercise the rights and powers
     vested in it by this Guarantee Agreement.

          (vi)   The Guarantee Trustee shall not be bound to make any
     investigation into the facts or matters stated in any resolution,
     certificate, statement, instrument, opinion, report, notice, request,
     direction, consent, order, bond, debenture, note, other evidence of
     indebtedness or other paper or document, but the Guarantee Trustee, in its
     discretion, may make such further inquiry or investigation into such facts
     or matters as it may see fit.

          (vii)  The Guarantee Trustee may execute any of the trusts or powers
     hereunder or perform any duties hereunder either directly or by or through
     its agents or attorneys, and the Guarantee Trustee shall not be responsible
     for any misconduct or negligence on the part of any such agent or attorney
     appointed by it with due care hereunder.

          (viii) Whenever in the administration of this Guarantee Agreement the
     Guarantee Trustee shall deem it desirable to receive instructions with
     respect to enforcing any remedy or right or taking any other action
     hereunder, the Guarantee Trustee (A) may request instructions from the
     Holders, (B) may refrain from enforcing such remedy or right or taking such
     other action until such instructions are received, and (C) shall be
     protected in acting in accordance with such instructions.

     (b) No provision of this Guarantee Agreement shall be deemed to impose any
duty or obligation on the Guarantee Trustee to perform any act or acts or
exercise any right, power, duty or obligation conferred or imposed on it in any
jurisdiction in which it shall be illegal, or in which the Guarantee Trustee
shall be unqualified or incompetent in accordance with applicable law, to
perform any such act or acts or to exercise any such right, power, duty or
obligation. No permissive power or authority available to the Guarantee Trustee
shall be construed to be a duty to act in accordance with such power and
authority.

     Section 3.3 Compensation; Indemnity; Fees.

     The Guarantor agrees:

          (a) to pay to the Guarantee Trustee from time to time such reasonable
     compensation for all services rendered by it hereunder as may be agreed by
     the Guarantor and the Guarantee Trustee from time to time (which
     compensation shall not be limited by any provision of law in regard to the
     compensation of a trustee of an express trust);

          (b) except as otherwise expressly provided herein, to reimburse the
     Guarantee Trustee upon request for all reasonable expenses, disbursements
     and advances incurred or made by the Guarantee Trustee in accordance with
     any provision of this Guarantee Agreement (including the reasonable
     compensation and the expenses and disbursements of its agents and

                                     -10-
<PAGE>

     counsel), except any such expense, disbursement or advance as may be
     attributable to its negligence or bad faith; and

          (c) to indemnify the Guarantee Trustee for, and to hold it harmless
     against, any loss, liability or expense incurred without negligence, wilful
     misconduct or bad faith on the part of the Guarantee Trustee, arising out
     of or in connection with the acceptance or administration of this Guarantee
     Agreement, including the costs and expenses of defending itself against any
     claim or liability in connection with the exercise or performance of any of
     its powers or duties hereunder.

     The Guarantee Trustee will not claim or exact any lien or charge on any
Guarantee Payments as a result of any amount due to it under this Guarantee
Agreement.

     The provisions of this Section 3.3 shall survive the termination of this
Guarantee Agreement or the resignation or removal of the Guarantee Trustee.

                                  ARTICLE IV

                               Guarantee Trustee

     Section 4.1. Guarantee Trustee; Eligibility.

     (a) There shall at all times be a Guarantee Trustee which shall:

          (i)   not be an Affiliate of the Guarantor; and

          (ii)  be a Person that is a national or state chartered bank and
     eligible pursuant to the Trust Indenture Act to act as such, and that has
     at the time of such appointment securities rated in one of the three
     highest rating categories by a nationally recognized statistical rating
     organization and a combined capital and surplus of at least $50,000,000,
     and shall be a corporation meeting the requirements of Section 310(a) of
     the Trust Indenture Act.  If such corporation publishes reports of
     condition at least annually, pursuant to law or to the requirements of its
     supervising or examining authority, then, for the purposes of this Section
     4.1 and to the extent permitted by the Trust Indenture Act, the combined
     capital and surplus of such corporation shall be deemed to be its combined
     capital and surplus as set forth in its most recent report of condition so
     published.

     (b) If at any time the Guarantee Trustee shall cease to be eligible to so
act under Section 4.1(a), the Guarantee Trustee shall immediately resign in the
manner and with the effect set out in Section 4.2.

                                     -11-
<PAGE>

     (c) If the Guarantee Trustee has or shall acquire any "conflicting
interest" within the meaning of Section 310(b) of the Trust Indenture Act, the
Guarantee Trustee and Guarantor shall in all respects comply with the provisions
of Section 310(b) of the Trust Indenture Act.

     Section 4.2. Appointment, Removal and Resignation of the Guarantee Trustee.

     (a) Subject to Section 4.2(c), the Guarantee Trustee may be appointed or
removed at any time by the Guarantor.

     (b) Subject to Section 4.2(c), the Guarantee Trustee may resign from office
(without need for prior or subsequent accounting) by giving written notice
thereof to the Holders and the Guarantor and by appointing a successor Guarantee
Trustee.

     (c) The Guarantee Trustee appointed hereunder shall hold office until a
Successor Guarantee Trustee shall have been appointed and shall have accepted
such appointment. No removal or resignation of a Guarantee Trustee shall be
effective until a Successor Guarantee Trustee has been appointed and has
accepted such appointment by written instrument executed by such Successor
Guarantee Trustee and delivered to the Guarantor and, in the case of any
resignation, the resigning Guarantee Trustee.

     (d) If the Guarantee Trustee shall resign, be removed or become incapable
of acting as Guarantee Trustee and a replacement shall not be appointed prior to
such resignation or removal, or if a vacancy shall occur in the office of
Guarantee Trustee for any reason, and no Successor Guarantee Trustee shall have
been appointed and accepted appointment as provided in this Section 4.2 within
60 days after delivery to the Holders and the Guarantor of a notice of
resignation, the resigning Guarantee Trustee may petition, at the expense of the
Guarantor, any court of competent jurisdiction for appointment of a Successor
Guarantee Trustee. Such court may thereupon, after prescribing such notice, if
any, as it may deem proper, appoint a Successor Guarantee Trustee.

                                   ARTICLE V

                                   Guarantee

     Section 5.1. Guarantee.

     The Guarantor irrevocably and unconditionally agrees to pay in full to the
Holders the Guarantee Payments (without duplication of amounts theretofore paid
by or on behalf of the Issuer Trust), as and when due, regardless of any
defense, right of set-off or counterclaim that the Issuer Trust may have or
assert, except the defense of payment. The Guarantor's obligation to make a
Guarantee Payment may be satisfied by direct payment of the required amounts by
the Guarantor to the Holders or by causing the Issuer Trust to pay such amounts
to the Holders.

                                     -12-
<PAGE>

     Section 5.2. Waiver of Notice and Demand.

     The Guarantor hereby waives notice of acceptance of this Guarantee
Agreement and of any liability to which it applies or may apply, presentment,
demand for payment, any right to require a proceeding first against the
Guarantee Trustee, the Issuer Trust or any other Person before proceeding
against the Guarantor, protest, notice of nonpayment, notice of dishonor, notice
of redemption and all other notices and demands.

     Section 5.3. Obligations Not Affected.

     The obligations, covenants, agreements and duties of the Guarantor under
this Guarantee Agreement shall in no way be affected or impaired by reason of
the happening from time to time of any of the following:

          (a)  the release or waiver, by operation of law or otherwise (other
     than by Act (as defined in the Trust Agreement) of the Holders), of the
     performance or observance by the Issuer Trust of any express or implied
     agreement, covenant, term or condition relating to the Capital Securities
     to be performed or observed by the Issuer Trust;

          (b)  the extension of time for the payment by the Issuer Trust of all
     or any portion of the Distributions (other than an extension of time for
     payment of Distributions that results from the extension of any interest
     payment period on the Debentures as provided in the Indenture), Redemption
     Price, Liquidation Distribution or any other sums payable under the terms
     of the Capital Securities or the extension of time for the performance of
     any other obligation under, arising out of, or in connection with, the
     Capital Securities;

          (c)  any failure, omission, delay or lack of diligence on the part of
     the Holders to enforce, assert or exercise any right, privilege, power or
     remedy conferred on the Holders pursuant to the terms of the Capital
     Securities, or any action on the part of the Issuer Trust granting
     indulgence or extension of any kind;

          (d)  the voluntary or involuntary liquidation, dissolution,
     receivership, insolvency, bankruptcy, assignment for the benefit of
     creditors, reorganization, arrangement, composition or readjustment of debt
     of, or other similar proceedings affecting, the Issuer Trust or any of the
     assets of the Issuer Trust;

          (e)  any invalidity of, or defect or deficiency in, the Capital
     Securities;

          (f)  the settlement or compromise of any obligation guaranteed hereby
     or hereby incurred; or

          (g)  any other circumstance whatsoever that might otherwise constitute
     a legal or equitable discharge or defense of a guarantor (other than
     payment of the underlying

                                     -13-
<PAGE>

     obligation), it being the intent of this Section 5.3 that the obligations
     of the Guarantor hereunder shall be absolute and unconditional under any
     and all circumstances.

There shall be no obligation of the Holders to give notice to, or obtain the
consent of, the Guarantor with respect to the happening of any of the foregoing.

     Section 5.4. Rights of Holders.

     The Guarantor expressly acknowledges that: (i) this Guarantee Agreement
will be deposited with the Guarantee Trustee to be held for the benefit of the
Holders; (ii) the Guarantee Trustee has the right to enforce this Guarantee
Agreement on behalf of the Holders; (iii) the Holders of a Majority in
Liquidation Amount of the Capital Securities have the right to direct the time,
method and place of conducting any proceeding for any remedy available to the
Guarantee Trustee in respect of this Guarantee Agreement or exercising any trust
or power conferred upon the Guarantee Trustee under this Guarantee Agreement;
and (iv) any Holder may institute a legal proceeding directly against the
Guarantor to enforce its rights under this Guarantee Agreement without first
instituting a legal proceeding against the Guarantee Trustee, the Issuer Trust
or any other Person.

     Section 5.5. Guarantee of Payment.

     This Guarantee Agreement creates a guarantee of payment and not of
collection. This Guarantee Agreement will not be discharged except by payment of
the Guarantee Payments in full (without duplication of amounts theretofore paid
by the Issuer Trust) or upon the distribution of Debentures to Holders as
provided in the Trust Agreement.

     Section 5.6. Subrogation.

     The Guarantor shall be subrogated to all rights (if any) of the Holders
against the Issuer Trust in respect of any amounts paid to the Holders by the
Guarantor under this Guarantee Agreement; provided, however, that the Guarantor
shall not (except to the extent required by mandatory provisions of law) be
entitled to enforce or exercise any rights which it may acquire by way of
subrogation or any indemnity, reimbursement or other agreement, in all cases as
a result of payment under this Guarantee Agreement, if, at the time of any such
payment, any amounts are due and unpaid under this Guarantee Agreement. If any
amount shall be paid to the Guarantor in violation of the preceding sentence,
the Guarantor agrees to hold such amount in trust for the Holders and to pay
over such amount to the Holders.

     Section 5.7. Independent Obligations.

     The Guarantor acknowledges that its obligations hereunder are independent
of the obligations of the Issuer Trust with respect to the Capital Securities
and that the Guarantor shall be liable as principal and as debtor hereunder to
make Guarantee Payments pursuant to the terms of this

                                     -14-
<PAGE>

Guarantee Agreement notwithstanding the occurrence of any event referred to in
subsections (a) through (g), inclusive, of Section 5.3 hereof.

                                  ARTICLE VI

                          Covenants and Subordination

     Section 6.1. Subordination.

     The obligations of the Guarantor under this Guarantee Agreement will
constitute unsecured obligations of the Guarantor and will rank subordinate and
junior in right of payment to all Senior Indebtedness (as defined in the
Indenture) of the Guarantor to the extent and in the manner set forth in the
Indenture with respect to the Debentures, and the provisions of Article XIII of
the Indenture will apply, mutatis mutandis, to the obligations of the Guarantor
hereunder. The obligations of the Guarantor hereunder do not constitute Senior
Indebtedness (as defined in the Indenture) of the Guarantor.

     Section 6.2. Pari Passu Guarantees.

     The obligations of the Guarantor under this Guarantee Agreement shall rank
pari passu with the obligations of the Guarantor under (i) any similar guarantee
agreements issued by the Guarantor on behalf of the holders of preferred or
capital securities issued by any Issuer Trust (as defined in the Indenture);
(ii) the Indenture and the Securities (as defined therein) issued thereunder;
(iii) the Expense Agreement (as defined in the Trust Agreement) and any similar
expense agreements entered into by the Guarantor in connection with the offering
of Capital Securities (as defined in the Indenture) by any Issuer Trust (as
defined in the Indenture); and (iv) any other security, guarantee or other
agreement or obligation that is expressly stated to rank pari passu with the
obligations of the Guarantor under this Guarantee Agreement or with any
obligation that ranks pari passu with the obligations of the Guarantor under
this Guarantee Agreement.

                                     -15-
<PAGE>

                                  ARTICLE VII

                                  Termination

     Section 7.1. Termination.

     This Guarantee Agreement shall terminate and be of no further force and
effect upon (i) full payment of the Redemption Price (as defined in the Trust
Agreement) of all Capital Securities, (ii) the distribution of Debentures to the
Holders in exchange for all of the Capital Securities, or (iii) full payment of
the amounts payable in accordance with Article IX of the Trust Agreement upon
liquidation of the Issuer Trust. Notwithstanding the foregoing, this Guarantee
Agreement will continue to be effective or will be reinstated, as the case may
be, if at any time any Holder is required to repay any sums paid with respect to
Capital Securities or this Guarantee Agreement.

                                 ARTICLE VIII

                                 Miscellaneous

     Section 8.1. Successors and Assigns.

     All guarantees and agreements contained in this Guarantee Agreement shall
bind the successors, assigns, receivers, trustees and representatives of the
Guarantor and shall inure to the benefit of the Holders of the Capital
Securities then outstanding. Except in connection with a consolidation, merger
or sale involving the Guarantor that is permitted under Article VIII of the
Indenture and pursuant to which the successor or assignee agrees in writing to
perform the Guarantor's obligations hereunder, the Guarantor shall not assign
its obligations hereunder, and any purported assignment other than in accordance
with this provision shall be void.

     Section 8.2. Amendments.

     Except with respect to any changes that do not adversely affect the rights
of the Holders in any material respect (in which case no consent of the Holders
will be required), this Guarantee Agreement may only be amended with the prior
approval of the Holders of not less than a Majority in Liquidation Amount of the
Capital Securities. The provisions of Article VI of the Trust Agreement
concerning meetings of the Holders shall apply to the giving of such approval.

     Section 8.3. Notices.

     (a) Any notice, request or other communication required or permitted to be
given hereunder shall be in writing, duly signed by the party giving such
notice, and delivered, by facsimile or first class mail as follows:

                                     -16-
<PAGE>

          (i)   if given to the Guarantor, to the address or facsimile number
     set forth below or such other address or facsimile number as the Guarantor
     may give notice to the Guarantee Trustee and the Holders:

          Southern States Cooperative, Incorporated
          6606 West Broad Street
          Richmond, Virginia  23260
          Attention:  ______________
          Facsimile: _______________

          (ii)  if given to the Guarantee Trustee, at the address or facsimile
     number set forth below or such other address or facsimile number as the
     Guarantee Trustee may give notice to the Guarantor and the Holders:

          First Union National Bank
          800 East Main Street, Lower Mezzanine
          Richmond, Virginia 23219
          Attention:  Corporate Trust Group
          Facsimile:  (804) 343-6699

          (iii) if given to any Holder, in the manner set forth in Section 10.8
     of the Trust Agreement.

     (b)  All notices hereunder shall be deemed to have been given when received
in person, by facsimile with receipt confirmed, or mailed by first class mail,
postage prepaid, except that if a notice or other document is refused delivery
or cannot be delivered because of a changed address of which no notice was
given, such notice or other document shall be deemed to have been delivered on
the date of such refusal or inability to deliver, provided that any notice given
as provided in Section 8.3(a)(iii) shall be deemed to have been given at the
time specified in Section 10.8 of the Trust Agreement.

     Section 8.4. Benefit.

     This Guarantee Agreement is solely for the benefit of the Holders and is
not separately transferable from the Capital Securities.

     Section 8.5. Governing Law.

     This Guarantee Agreement shall be governed by and construed in accordance
with the laws of the State of New York.

                                     -17-
<PAGE>

     Section 8.6. Counterparts.

     This Guarantee Agreement may be executed in any number of counterparts,
each of which so executed shall be deemed to be an original, but all such
counterparts shall together constitute but one and the same instrument.

                                     -18-
<PAGE>

     IN WITNESS WHEREOF, the parties hereto have caused this Guarantee Agreement
to be duly executed, and their respective corporate seals to be hereunto
affixed, all as of the day and year first above written.

                                        SOUTHERN STATES COOPERATIVE,
                                        INCORPORATED

[SEAL]
                                        By: ________________________________
                                            Name:
                                            Title:

Attest:  __________________________
         Name:
         Title:

                                        FIRST UNION NATIONAL BANK,
                                        as Guarantee Trustee

[SEAL]
                                        By: ________________________________
                                            Name:
                                            Title:

Attest:  __________________________
         Name:
         Title:<PAGE>

                                                              EXHIBIT 10.1(b)(i)

                                 AMENDMENT TO
                           ASSET PURCHASE AGREEMENT

     This Agreement made as of the 7 day of September, 1999, by and between Gold
Kist Inc., a Georgia cooperative marketing association ("GK"), and Southern
States Cooperative, Inc., a Virginia agricultural cooperative, a corporation
("Southern States").

                                  WITNESSETH:

     WHEREAS, GK and Southern States desire to amend the terms of the Asset
Purchase Agreement dated as of July 23, 1998 (the "Agreement") to change the
minimum amount of certain indemnifiable losses for which Gold Kist shall be
liable pursuant to the Asset Purchase Agreement;

     NOW, THEREFORE, in consideration of the foregoing and the mutual covenants
and obligations contained herein, it is mutually agreed as follows:

     1.   The Agreement is incorporated herein by reference and is specifically
          made a part hereof. All provisions, terms, covenants and conditions
          set forth therein shall remain in full force and effect and shall
          apply to this Agreement, except as specifically and expressly modified
          herein.

     2.   GK and Southern States hereby agree that Section 15.3(b) of the
          Agreement shall be amended to read as follows:

           (b)  Notwithstanding the provisions of Section 15.2, Gold Kist shall
                have no liability to indemnify Southern States Indemnified
                Persons hereunder with respect to the matters referenced in
                clause (iii) of Section 15.3(a) above with respect to any
                individual claim until the aggregate amount of Southern States
                Indemnified Persons' indemnifiable losses exceed $25,000 for
                such claims; provided, however, that if the aggregate amount of
                any such losses with respect to a claim exceeds $25,000, Gold
<PAGE>

               Kist shall indemnify Southern States for the entire amount of
               such claim, including the initial $25,000 amount.

     3.   This amendment to the Agreement shall be deemed to be effective as of
          October 13, 1998.

          IN WITNESS WHEREOF, the parties have duly executed this amendment to
the Agreement as of the date first above written.

                                              GOLD KIST INC.

                                              By:  /s/  M. A. Stimpert
                                                 -------------------------------
                                              Title: Senior Vice President
                                                     ---------------------------

                                              SOUTHERN STATES COOPERATIVE, INC.

                                              By:_______________________________
                                              Title:____________________________

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