Document:

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                                                                  EXHIBIT 4.3(b)

                       FIRST AMENDMENT TO CREDIT AGREEMENT
                      BETWEEN U.S. BANCORP AG CREDIT, INC.
                          (F/K/A/FBS AG CREDIT, INC.),
                  AS AGENT FOR ITSELF AND CERTAIN OTHER LENDERS
                                       AND
                          PREMIUM STANDARD FARMS, INC.
                              DATED AUGUST 27, 1997

         This First Amendment to Credit Agreement (this "AMENDMENT") is made
this 13th day of May, 1998 among PREMIUM STANDARD FARMS, INC., a Delaware
corporation ("PREMIUM"), CGC ASSET ACQUISITION CORP., a Delaware corporation
("ASSET SUB"), the financial institutions listed on the signature pages hereof
(collectively the "LENDERS" and individually a "LENDER") and U.S. BANCORP AG
CREDIT, INC. (f/k/a FBS Ag Credit, Inc.), a Colorado corporation (the "AGENT"),
in its capacity as Agent for the Lenders under the Credit Agreement (hereinafter
defined).

                                    RECITALS

         A.       Premium, PSF Holdings, L.L.C. ("PSF") and Continental Grain
Company, a Delaware corporation ("CGC") have entered into a Stock Purchase
Agreement dated December 23, 1997 (the "STOCK PURCHASE AGREEMENT"), pursuant to
which CGC has agreed to purchase and PSF has agreed to sell 51 % of the issued
and outstanding common stock of Premium.

         B.       In connection with the Stock Purchase Agreement, Premium has
formed Asset Sub, a wholly-owned subsidiary. Asset Sub, Premium and CGC have
entered into an Asset Purchase Agreement dated as of December 23, 1997 (the
"ASSET PURCHASE AGREEMENT"), pursuant to which Asset Sub has agreed to purchase
certain assets from CGC.

         C.       In connection with the closing of the transactions
contemplated by the Stock Purchase Agreement and the Asset Purchase Agreement,
CGC and Asset Sub will be entering into a Market Hog Contract Grower Agreement
(the "GROWER AGREEMENT") pursuant to which, among other things, CGC will provide
certain services to Asset Sub in connection with the breeding, growing and
caring for hogs owned by Asset Sub.

         D.       In connection with the Stock Purchase Agreement and the Asset
Purchase Agreement, CGC and PSF have entered into a Contribution Agreement dated
as of December 23, 1997 (the "CONTRIBUTION AGREEMENT"), pursuant to which CGC
will be forming PSF Group Holdings, Inc., a Delaware corporation ("NEWCO"), and
pursuant to which each of CGC and PSF will make a capital contribution to Newco
(directly or by way of merger) consisting of the stock each owns in Premium.

         E.       In connection with the closing of the transactions
contemplated by the Contribution Agreement, PSF and Newco will be entering into
an Agreement and Plan of Merger (the "MERGER AGREEMENT"), pursuant to which PSF
and Newco will merge, with Newco being the surviving corporation.
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         F.       The Credit Agreement dated as of August 27, 1997 among
Premium, the Agent and the Lenders (as the same may be amended, replaced,
restated and/or supplemented from time to time, the "CREDIT AGREEMENT")
currently prohibits Premium from consummating the transactions described in
paragraphs A through E above and certain other related transactions
(collectively the "CGC TRANSACTIONS"). In addition, Premium has requested that
the Agent and the Lenders agree to increase their Revolving Loan Commitments
from $60,000,000 in the aggregate to $90,000,000 in the aggregate. In connection
with the Asset Purchase Agreement and the Grower Agreement, Asset Sub will
require working capital financing. Accordingly, Premium and Asset Sub have
requested that the Agent and the, Lenders permit Asset Sub to become a borrower
under the Credit Agreement. Premium and Asset Sub have further requested certain
other changes in the terms of the Credit Agreement.

         G.       The Agent and the Lenders are willing to consent to the CGC
Transactions, to increase the Revolving Loan Commitments to $90,000,000, to
permit Asset Sub to become a borrower under the Credit Agreement, and to agree
to the other changes in the terms of the Credit Agreement, but only on the terms
and conditions herein contained.

         NOW THEREFORE, in consideration of the foregoing and of the terms and
conditions contained in the Credit Agreement and this Amendment, and of any
loans or extensions of credit or other financial accommodations heretofore, now
or hereafter made to or for the benefit of Premium or Asset Sub by the Agent and
the Lenders, Premium, Asset Sub, the Agent and the Leaders agree as follows:

         1.       Representation and Warranty as to CGC Transactions and Consent
to CGC Transactions. The Borrower represents and warrants to the Agent and the
Lenders that the factual information taken as a whole in the materials furnished
by or on behalf of the Borrower to the Agent or any Lender for purposes of or in
connection with the CGC Transactions, does not contain any untrue statement of a
material fact or omit to state any material fact necessary to keep the
statements contained therein from being misleading as of the date of this
Agreement. The Borrower further represents and warrants to the Agent and the
Lenders that the financial projections and other financial information furnished
to the Agent or any Lender by the Borrower in connection with the CGC
Transactions were prepared in good faith on the basis of information and
assumptions that the Borrower believed to be reasonable as of the date of such
information, provided however that the Agent and the Lenders acknowledge that
financial projections are not a guaranty of future results. In reliance on the
foregoing representation and warranties, the Agent and the Lenders consent to
the CGC Transactions notwithstanding anything contained in the Credit Agreement
prohibiting the CGC Transactions. Without limiting the generality of the
foregoing, the Agent and the Lenders acknowledge that Premium and Asset Sub
intend to use up to $53,000,000 of Revolving Loans in connection with the
consummation of the CGC Transactions, and the, Agent and the Lenders consent to
the same.

         2.       Definitions. Capitalized terms used and not defined in this
Amendment shall have the meanings given to such terms in the Credit Agreement.

         3.       New Defined Terms. Section 1.1 of the Credit Agreement,
Defined Terms, is amended to add the following new definitions which shall read
in full as follows:

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                  "A REVOLVING LOAN" shall mean any Revolving Loan made pursuant
         to Section 2.1(a)(i).

                  "A REVOLVING LOAN COMMITMENT" shall mean as to any Lender,
         such Lender's Pro Rata Percentage of $60,000,000 as set forth opposite
         such Lender's name under the heading "A Revolving Loan Commitments" on
         Exhibit 1F, as such amount may be reduced or terminated from time to
         time pursuant to Section 4.4 or 11.1, and "A REVOLVING LOAN
         COMMITMENTS" shall mean collectively, the A Revolving Loan Commitments
         for all the Lenders.

                  "A REVOLVING NOTE" shall mean any Revolving Note executed
         pursuant to Section 2.1(h)(i).

                  "AMENDMENT #1 CLOSING DATE" shall mean May ___, 1998.

                  "ASSET SUB" shall mean CGC Asset Acquisition Corp., a Delaware
         corporation.

                  "B REVOLVING LOAN" shall mean any Revolving Loan made pursuant
         to Section 2.1(a)(ii).

                  "B REVOLVING LOAN COMMITMENT" shall means as to any Lender,
         such Lender's Pro Rata Percentage of $30,000,000 as set forth opposite
         such Lender's name under the heading "B Revolving Loan Commitments" on
         Exhibit 1F, as such amount may be reduced or terminated from time to
         time pursuant to Section 4.4 or 11.1, and "B REVOLVING LOAN
         COMMITMENTS" shall mean collectively, the B Revolving Loan Commitments
         for all Lenders.

                  "B REVOLVING NOTE" shall mean any Revolving Note executed
         pursuant to Section 2.1(h)(ii).

                  "BORROWER" shall mean Premium Standard Farms, Inc., a Delaware
         corporation and CGC Asset Acquisition Corp., a Delaware corporation, or
         if the context so requires, either of them.

                  "CAPITAL SPENDING AMOUNT" shall mean for any period: (a) the
         consolidated net fixed assets of the Borrower at the end of such
         period, minus (b) the consolidated net fixed assets of the Borrower at
         the beginning of such period, plus (c) consolidated depreciation during
         such period.

                  "CGC" shall mean Continental Grain Company, a Delaware
         corporation.

                  "CONSOLIDATED" and "CONSOLIDATING" when used with respect to
         the Borrower's financial statements, shall mean that such financial
         statements

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         shall include the financial information of Premium and all of its
         subsidiaries, including without limitation, Asset Sub.

                  "NEWCO" shall mean PSF Group Holdings, Inc., a Delaware
         corporation.

                  "REVOLVING LOANS" shall mean the A Revolving Loans and/or the
         B Revolving Loans.

                  "REVOLVING NOTES" shall mean the A Revolving Notes and/or the
         B Revolving Notes.

         4.       Replaced Defined Terms. Section 1.1 of the Credit Agreement,
Defined Terms, is also amended by eliminating the definitions of "Agent's
Letter", "EBITDA", "First Bank", "Fiscal Year", "Guarantor", "Guaranty",
"Property", "Revolving Loan Commitment", "Unallocated Cash Flow", "Unit" and
"Working Capital", and replacing them in full with the following definitions.

                  "AGENT'S LETTER" shall mean the letter agreements entered into
         from time to time between the Agent and the Borrower and governing the
         Agents fees.

                  "EBITDA" shall mean: (a) the net combined income of the
         Borrower before provision for income taxes, interest expense (including
         without limitation, implicit interest expense on capitalized leases),
         depreciation (other than depreciation attributable to breeding stock,
         amortization and other noncash expenses or charges, excluding (to the
         extent included): (i) nonoperating gains (including without limitation,
         extraordinary or nonrecurring pins, gains from discontinuance of
         operations and gains arising from the sale of assets other than
         Inventory) during the applicable period; and (ii) similar nonoperating
         losses during such period, plus (b) up to $22,000,000 in nonrecurring
         expenses incurred or accrued on or before the closing of the CGC
         transaction consisting of brokerage fees and management options payable
         in connection with the CGC Transactions.

                  "FIRST BANK" shall mean U.S. Bank National Association, a
         national banking association with its principal place of business in
         Minneapolis, Minnesota and an Affiliate of the Agent, and its
         successors and assigns.

                  "FISCAL YEAR" means the fiscal year of the Borrower, which
         shall be the twelve month period ending on or about March 31 each year.

                  "GUARANTOR" shall mean Newco, in its capacity as guarantor of
         the Liabilities, and any other Person who may hereafter execute and
         deliver in favor of the Agent and the Lenders, a guarantee of the
         Liabilities.

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                  "GUARANTY" shall mean that certain Guaranty by Newco dated as
         of the Amendment #1 Closing Date, guaranteeing the payment and
         performance of the Liabilities.

                  "PROPERTY" shall mean: (a) the land, the improvements, the
         fixtures and the Equipment of Premium located in Mercer, Putnam and
         Sullivan Counties, Missouri and in Dallam and Hartley Counties, Texas
         as legally described on Exhibit 1E to the Credit Agreement provided
         however, that the Property specifically includes Premium's processing
         facility located in Milan, Missouri; and (b) the improvements, the
         fixtures and the Equipment of Asset Sub located in Gentry, Grundy,
         Harrison and Worth Counties, Missouri and acquired from CGC pursuant to
         the Asset Purchase Agreement, including without limitation, Asset Sub's
         feed mill and office located in Davies County.

                  "REVOLVING LOAN COMMITMENT" shall mean, as to any Lender, such
         Lender's A Revolving Loan Commitment and/or such Lender's B Revolving
         Loan Commitment, and "REVOLVING LOAN COMMITMENT" shall mean
         collectively, the Revolving Loan Commitments for all the Lenders.

                  "UNALLOCATED CASH FLOW" shall mean for any period of
         determination (a) EBITDA during such period, minus (b) the amount of
         cash taxes paid during such period, minus (c) the amount of cash
         dividends paid during such period, minus (d) the amount of cash
         interest paid during such period, minus (e) the Capital Spending Amount
         during such period (provided however, that Asset Sub's purchase of
         assets from CGC for $75,000,000 during the Borrower's 1998 Fiscal Year,
         shall not be included in determining the Capital Spending Amount for
         any period in which such purchase occurs, and provided further, that
         capital expenditures consisting of the purchase of breeding stock shall
         not be included in determining the Capital Spending Amount for any
         period in which such purchase occurs), minus (f) the cash portion of
         the purchase price paid during such period for any acquisition
         permitted under Section 10.2.

                  "UNIT" shall mean a combination of hog production facilities
         consisting of breeding, gestation and farrowing buildings sufficient to
         house 9,900 to 10,800 gilts and/or sows, together with such nursery and
         finishing buildings as are necessary to support the offspring of said
         9,900 to 10,800 gilts and/or sows.

                  "WORKING CAPITAL" shall mean as of any particular date, the
         amount of the Borrower's combined current assets (including the net
         book value of breeding stock), adjusted by deducting prepaid expenses
         (excluding deferred income taxes), less the Borrower's combined current
         liabilities (including without limitation, the aggregate amount of
         Revolving Loans outstanding), treating all amounts currently owing to

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         Affiliates (except amounts owing to Affiliates eliminated by
         combination) as current liabilities and giving no value as assets to
         any amounts currently owing from Affiliates.

         5.       Deleted Defined Terms. Section 1.1 of the Credit Agreement,
Defined Terms, is amended to delete the defined term "Fixed Charge Deficiency
Amount" and its definition.

         6.       Section 1.2 of the Credit Agreement, is amended to add the
following capitalized terms which are defined in the Preambles to this
Amendment: "Asset Purchase Agreement", "Contribution Agreement", "CGC
Transactions", "Grower Agreement", "Merger Agreement" and "Stock Purchase
Agreement".

         7.       Revolving Loans. Section 2.1(a) of the Credit Agreement is
amended to read in full as follows:

                  (a)(i) Subject to the terms and conditions and relying upon
         the representations and warranties herein set forth, each Lender
         severally agrees to make revolving credit loans (each an "A REVOLVING
         LOAN" and more than one A Revolving Loan, the "A REVOLVING LOANS") to
         the Borrower on any one or more Business Days prior to the Revolving
         Maturity Date, up to an aggregate principal amount of A Revolving Loans
         not exceeding for each Lender, the lesser of such Lender's Pro Rata
         Percentage of the Available Amount on such Business Day or the amount
         of such Lender's A Revolving Loan Commitment. Within such limits and
         during such period and subject to the terms and conditions of this
         Agreement, the Borrower may borrow, repay and reborrow A Revolving
         Loans.

                  (ii) If the amount of A Revolving Loans outstanding equals the
         aggregate amount of the A Revolving Loan Commitments at any time,
         subject to the terms and conditions and relying upon the
         representations and warranties herein set forth, each Lender severally
         agrees to make revolving credit loans (each a "B REVOLVING LOAN" and
         more than one B Revolving Loan, the "B REVOLVING LOANS") to the
         Borrower on any one or more Business Days prior to the Revolving
         Maturity Date, up to an aggregate principal amount of B Revolving Loans
         not exceeding for each Lender, the lesser of such Lender's Pro Rata
         Percentage of the Available Amount on such Business Day or the amount
         of such Lender's B Revolving Loan Commitment. Within such limits and
         during such period and subject to the terms and conditions of this
         Agreement, the Borrower may borrow, repay and reborrow B Revolving
         Loans.

         8.       Restated Revolving Notes. Section 2.1(h) of the Credit
Agreement is amended to read in full as follows:

                  (h)(i) The Borrower shall execute and deliver to the Agent for
         each Lender to evidence the A Revolving Loans made by each Lender

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         under such Lender's A Revolving Loan Commitment, a restated revolving
         credit note (each such note, an "A REVOLVING NOTE" and collectively the
         "A REVOLVING NOTES"), which shall be (i) dated the date of the
         Amendment #1 Closing Date; (ii) in the principal amount of such
         Lender's maximum A Revolving Loan Commitment; and (iii) in
         substantially the form attached as Exhibit 2C, appropriately completed.
         Each Lender shall post (iv) the date and principal amount of each A
         Revolving Loan made under such A Revolving Note; (v) the rate of
         interest each such A Revolving Loan will bear; and (vi) each payment of
         principal thereon; provided however, that any failure of such Lender to
         so post shall not affect the Borrower's obligations thereunder.

                  (ii) The Borrower shall execute and deliver to the Agent for
         each Lender to evidence the B Revolving Loans made by each Lender under
         such Lender's B Revolving Loan Commitment, a revolving credit note
         (each such note, a "B REVOLVING NOTE" and collectively the "B REVOLVING
         NOTES"), which shall be (i) dated the date of the Amendment #1 Closing
         Date; (ii) in the principal amount of such Lender's maximum B Revolving
         Loan Commitment; and (iii) in substantially the form attached as
         Exhibit 2D, appropriately completed. Each Lender shall post (iv) the
         date and principal amount of each B Revolving Loan made under such B
         Revolving Note; (v) the rate of interest each such B Revolving Loan
         will bear; and (vi) each payment of principal thereon; provided
         however, that any failure of such Lender to so post shall not affect
         the Borrower's obligations thereunder.

         9.       Conditional Release of Certain Collateral. Section 4.5 of the
Credit Agreement is deleted in its entirety.

         10.      Commitment Fee with Respect to Revolving Loan Commitments.
Section 6.1 of the Agreement is amended to read in full as follows:

                  Premium and Asset Sub jointly and severally agree to pay to
         the Agent for distribution to the Lenders (based on their respective
         Revolving Loan Commitments) an annual commitment fee from the Closing
         Date to the first Anniversary Date, in the annual amount of Seventy
         Five Thousand Dollars ($75,000), which amount is the total fee for
         Premium and Asset Sub together and not for Premium and Asset Sub
         individually. Premium and Asset Sub further jointly and severally agree
         to pay to the Agent for distribution to the Lenders (based on their
         respective Revolving Loan Commitments) an additional commitment fee
         from the Amendment #1 Closing Date to the first Anniversary Date, in
         the amount of Thirty Seven Thousand Five Hundred Dollars ($37,500),
         which amount is the total fee for Premium and Asset Sub together and
         not for Premium and Asset Sub individually. Beginning with the first
         Anniversary Date, the annual commitment fee shall be increased to One
         Hundred Twelve Thousand Five Hundred Dollars ($112,500), which amount
         is the total fee

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         for Premium and Asset Sub together and not for Premium and Asset Sub
         individually. The initial annual commitment fee for the Revolving Loan
         Commitments shall be due and payable in advance on the date of this
         Agreement, in the amount of Seventy Five Thousand Dollars ($75,000).
         The additional commitment fee for the Revolving Loan Commitments shall
         be due and payable in advance on the Amendment #1 Closing Date, in the
         amount of Thirty Seven Thousand Five Hundred Dollars ($37,500).
         Thereafter annual commitment fees for the Revolving Loan Commitments
         shall be due and payable in advance on each Anniversary Date prior to
         the Revolving Maturity Date in the amount of One Hundred Twelve
         Thousand Five Hundred Dollars ($112,500), and on the Revolving Maturity
         Date, unless the Borrower has fully terminated the Commitments in
         accordance with Section 4.4 and has fully paid and satisfied all of the
         Liabilities relating to the Revolving Loans (including without
         limitation, all of the LC Obligations), provided however, that the
         annual commitment fee for the period beginning on the Anniversary Date
         next preceding the Revolving Maturity Date shall be pro-rated if
         applicable. Each commitment fee shall be fully earned on the date it
         becomes payable and, at the option of the Agent, shall be paid by
         direct debit against the Borrower's checking account.

         11.      Other Names. Section 7.7 of the Agreement is amended to read
in full as follows:

                  Premium has not, during the preceding five years, been known
         by or used any other name, except as disclosed on Part 7 of Exhibit 7
         to the Credit Agreement. Asset Sub has not, during the preceding five
         years, been known by or used any other name.

         12.      Affiliates. Section 7.8 of the Agreement is amended to read in
full as follows:

                  The Borrower has no Affiliates, other than those Persons
         disclosed on Exhibit 7A, and the legal relationships of the Borrower to
         each such Affiliate are accurately and completely described thereon.

         13.      Financial Covenants and Ratios. Section 9.6 of the Agreement
is amended to read in full as follows:

                  The Borrower shall maintain:

                  (a)      a consolidated Tangible Net Worth of not less than
         $125,000,000 at all times;

                  (b)      a consolidated ratio of total liabilities to Tangible
         Net Worth of not more than 1.75 to 1.0 at all times;

                  (c)      consolidated Working Capital of not less than
         $30,000,000 at all times; and

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                  (d)      a consolidated Fixed Charge Coverage Ratio
         (calculated on a rolling twelve month basis) as of the end of each
         fiscal month of the Borrower of not less 1.0 to 1.0 (the "required
         level") at all times, provided however, that the Borrower shall be
         permitted to have a Fixed Charge Coverage Ratio (so calculated) at the
         end of any fiscal month between 0.80 to 1.0 and the required level as
         long as the Fixed Charge Coverage Ratio (so calculated) returns to not
         less than the required level by the end of the twelfth fiscal month
         following the fiscal month end on which the Fixed Charge Coverage Ratio
         (so calculated) first went below the required level, and as long as the
         Fixed Charge Coverage Ratio (so calculated) does not fall below the
         required level after the expiration of twelve months following the
         fiscal month end on which the Fixed Charge Coverage Ratio (so
         calculated) first went below the required level.

         14.      Article 9 of the Agreement is amended to add a new Section
9.17, which reads in full as follows:

         9.17     Ownership of Asset Sub.

                  Asset Sub shall at all times be a wholly owned subsidiary of
         Premium except as allowed in Section 10.2(c).

         15.      Consolidations, Mergers or Acquisitions. Section 10.2 of the
Agreement is amended to read in full as follows:

                  Neither Premium nor Asset Sub shall recapitalize or
         consolidate with, merge with, or otherwise acquire all or substantially
         all of the assets or properties of any other Person, except that: (a)
         Premium may enter into any transaction to raise equity capital which
         transaction does not result in a change of control of Premium, as the
         word "control" is used in the definition of Affiliate, (b) Premium may
         merge with any Affiliate which is a wholly-owned subsidiary of Premium,
         (c) Premium and Asset Sub may merge with one another and Asset Sub may
         be dissolved in connection with any such merger, and (d) Premium or
         Asset Sub may enter into acquisition transactions not exceeding
         $10,000,000 in aggregate purchase price, provided however, that all of
         such purchase price is paid in cash or debt permitted under Section
         10.4, and provided further, that Premium demonstrates to the reasonable
         satisfaction of the Agent that each such acquisition transaction will
         not result in a violation of Section 9.6(d).

         16.      Guaranties. Section 10.5 of the Agreement is amended to permit
Premium to guarantee Asset Sub's liabilities and obligations to CGC under or
pursuant to the Grower Agreement.

         17.      Capital Investment Limitations. Section 10.7 of the Agreement
is amended to read in full as follows:

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                  The Borrower shall not purchase, invest in or otherwise
         acquire additional real estate, equipment or other fixed assets (other
         than the replacement of breeding animals in the ordinary course of
         business, Asset Sub's purchase of assets from CGC for $75,000,000
         during the Borrower's 1999 Fiscal Year and the replacement of obsolete
         and worn out Equipment in the ordinary course of business) which would
         cause its Capital Spending Amount in any one Fiscal Year to exceed the
         lesser of: (a) the maximum amount that would maintain the Borrower's
         consolidated Fixed Charge Coverage Ratio for such Fiscal Year at the
         level required in Section 9.6(d), (b) $43,000,000, or (c) the following
         specific limits: (i) $31,000,000 during the Borrower's 1997 Fiscal
         Year, (ii) $30,000,000 during the Borrower's 1999 Fiscal Year, plus the
         amount (if any) by which the Borrower's capital expenditures during its
         1997 Fiscal Year were less than the specific limit for that Fiscal
         Year, (iii) $35,000,000 during the Borrower's 2000 Fiscal Year, plus
         the amounts (if any) by which the Borrower's capital expenditures
         during its 1997 and 1999 Fiscal Years were less than the specific
         limits for those Fiscal Years, (iv) $33,000,000 during the Borrower's
         2001 Fiscal Year, plus the amounts (if any) by which the Borrower's
         capital expenditures during its 1997, 1999 and 2000 Fiscal Years were
         less than the specific limits for those Fiscal Years, and (v)
         $29,000,000 during the Borrower's 2002 Fiscal Year, plus the amounts
         (if any) by which the Borrower's capital expenditures during its 1997,
         1999, 2000 and 2001 Fiscal Years were less than the specific limits for
         those Fiscal Years. Notwithstanding the foregoing specific limits, the
         Borrower may expend up to an additional $3,000,000 per Fiscal Year in
         capital expenditures, as long as such additional capital expenditures
         do not result in the Borrower's consolidated Fixed Charge Coverage
         Ratio for such Fiscal Year being less than the level required in
         Section 9.6(d), and as long as the capital expenditures in any one
         Fiscal Year do not exceed $43,000,000.

         18.      Loans to Affiliates. Section 10.9 of the Agreement is amended
to add the following sentence at the end thereof:

         Nothing in this Section 10.9 shall limit the amount of loans from
         Premium to Asset Sub, or from Asset Sub to Premium, which may be
         outstanding at any one time.

         19.      Distributions, Prepayments of Debt. Section 10.10 of the
Agreement is amended to read in full as follows:

                  Premium shall not directly or indirectly: (a) redeem any of
         Premium's shares of capital stock; or (b) declare any dividends or
         distributions in respect of equity in any year, provided however, that
         Premium may make dividends in any one Fiscal Year of not more than
         $500,000 in the aggregate.

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         20.      Issuance of Equity; Amendment of Organization Documents.
Section 10.11 of the Agreement is amended to read in full as follows:

                  Premium shall not issue or distribute any of Premium's capital
         stock or membership interests for consideration or otherwise, except
         that Premium may enter into any transaction to raise equity capital as
         long as such transaction does not result in a change in control of
         Premium, as the word "control" is used in the definition of Affiliate.
         Asset Sub shall not issue or distribute any of Asset Sub's capital
         stock or membership interests for consideration or otherwise. Neither
         Premium nor Asset Sub shall amend its articles or certificate of
         incorporation or organization or bylaws, except upon prior written
         notice to the Agent, provided however, that any such amendment shall
         not result in a change of control of Premium or Asset Sub, as the case
         may be, as the word "control" is used in the definition of Affiliate.
         The foregoing prohibitions shall not apply to any of the foregoing
         actions which is necessary to accomplish any transaction that is
         otherwise permitted under Section 10.2 as long as such transaction does
         not result in a change in control of Premium, as the word "control" is
         used in the definition of Affiliate.

         21.      Payment of Subordinated Debt. Section 10.14 of the Agreement
is amended to read in full as follows:

                  The Borrower shall not directly or indirectly, pay, prepay,
         redeem or purchase, or deposit funds or property for the payment,
         prepayment, redemption or purchase of the indebtedness of Premium, of
         Asset Sub or of both, which is subordinated to the payment of any
         portion of the Liabilities, except that the Borrower may prepay
         subordinated debt in whole or in part at any time, as long as: (a)
         there is no Default or Matured Default at the time of such prepayment,
         (b) no Default or Matured Default would occur as a result of such
         prepayment, and (c) the Borrower has delivered to the Agent and the
         Lenders not less than five (5) Business Days before the date of any
         such proposed prepayment, pro forma financial statements demonstrating
         to the satisfaction of the Required Lenders, that the Borrower will be
         in compliance with the requirements of Section 9.6 immediately
         following any such prepayment and at the end of the then current fiscal
         quarter.

         22.      Section 13.18(a) of the Credit Agreement is amended to read in
full as follows:

                  (a)      All notices and other communications provided for
         herein shall be in writing (including telex, facsimile, or cable
         communication) and shall be mailed, telexed, cabled or delivered
         addressed as follows:

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                  (i)      If to the Agent at:

                           U.S. Bancorp Ag Credit, Inc.
                           950 Seventeenth Street, Suite 350
                           Denver, Colorado 80202
                           Attn:  James A. Bosco, President
                           Facsimile:  (303) 585-4732

                           with a copy to:

                           Ellen Beverley McNamara
                           Dorsey & Whitney
                           370 Seventeenth Street, Suite 4400
                           Denver, Colorado 80202

                  (ii)     If to the Borrower at:

                           Premium Standard Farms, Inc.
                           CGC Asset Acquisition, Inc.
                           423 West 8th Street, Suite 200
                           Kansas City, Missouri 64105
                           Attn:  Chief Financial Officer

                           with a copy to:

                           Sonnenschein Nath & Rosenthal
                           4520 Main Street, Suite 1100
                           Kansas City, Missouri 64111
                           Attn:  James A. Heeter, Esq.

                  (iii)    If to any of the Lenders other than the Agent, at the
                           address for such Lender set forth on the applicable
                           signature page of this Agreement;

         and, as to each party hereto, at such other address as shall be
         designated by such party in a written notice to the other parties
         hereto. All such notices and communications shall, when mailed,
         telecopied, telexed, transmitted, or cabled, become effective when
         deposited in the mail, confirmed by telex answerback, transmitted by
         telecopier, or delivered to the cable company, respectively except that
         notices and communications to the Agent shall not be effective until
         actually received by the Agent.

         23.      Exhibit 1D to the Credit Agreement, the Lenders' Commitments,
is replaced with Exhibit 1F to this Amendment.

         24.      Exhibit 2A to the Credit Agreement, the Form of Revolving
Notes, is replaced with Exhibit 2C to this Agreement.

                                       12
<PAGE>   13
         25.      Exhibit 2B to the Credit Agreement, the Form of Term Notes, is
replaced with Exhibit 2E to this Amendment.

         26.      Part 8 of Exhibit 7 to the Credit Agreement, Borrower's
Affiliates, is replaced with Exhibit 7A to this Amendment.

         27.      Part 9 of Exhibit 7 to the Credit Agreement, Environmental
Matters, is replaced with Exhibit 7B to this Amendment.

         28.      Exhibit 9A to the Credit Agreement, the Form of Compliance
Certificate, is replaced with Exhibit 9B to this Amendment.

         29.      Assumption of Indebtedness by Asset Sub, Obligations and
Covenants. Asset Sub hereby assumes all indebtedness of Premium to the Agent and
the Lenders pursuant to, and as a co-borrower joins in the Credit Agreement.
Asset Sub also agrees to pay all indebtedness to the Agent and the Lenders under
all promissory notes issued pursuant to the Credit Agreement, and agrees that
its liability to the Agent and the Lenders with respect to all indebtedness
thereunder shall be primary as well as joint and several with Premium, all as if
Asset Sub was an original obligor thereof. Asset Sub also agrees to abide by and
observe all of the covenants, terms and conditions to be observed and performed
by Borrower as contained in the Credit Agreement, and the agreements,
instruments and/or documents related thereto. Asset Sub shall be added as a
party to the Credit Agreement, and as a party to all of the agreements,
instruments and/or documents related thereto, and any and all references to
Borrower set forth in the Credit Agreement, or in any agreement, instrument or
document related thereto, including without limitation this Amendment, shall
hereafter include and pertain in all respects to Asset Sub. Premium acknowledges
and consents to the foregoing, and agrees that its liability to the Agent and
the Lenders with respect to all indebtedness under the Credit Agreement shall be
primary as well as joint and several with Asset Sub.

         30.      Representations and Warranties. To induce the Agent and the
Lenders to enter into this Amendment, the Borrower represents and warrants to
the Agent and the Lenders that except as described in this Amendment, each and
every representation and warranty set forth in the Credit Agreement is true and
correct as of the date hereof, and shall be deemed remade by the Borrower as of
the date hereof.

         31.      Conditions to Advances; Documentation. The effectiveness of
this Amendment shall be conditioned upon the execution and/or delivery of the
agreements, instruments and/or documents listed on Exhibit 8C attached hereto.

         32.      Incorporation of Credit Agreement. The parties agree that this
Amendment shall be an integral part of the Credit Agreement, that all of the
terms set forth therein are incorporated in this Amendment by reference, and
that all terms of this Amendment are incorporated therein as of the date of this
Amendment. All of the terms and conditions of the Credit Agreement which are not
modified in this Amendment shall remain in full force and effect. To the extent
the terms of this Amendment conflict with the terms of the Credit Agreement, the
terms of this Amendment shall control.

                                       13
<PAGE>   14
         33.      Return of Notes. After the restated Notes required to be
delivered pursuant to this Amendment have been delivered to the Agent and the
Lenders, each Lender shall return to the Borrower, the Notes replaced by the
restated Notes required to be delivered pursuant to this Agreement. Each Lender
(including the Agent in its capacity as a Lender) agrees to return such replaced
Notes to the Borrower as promptly as practicable after receiving the Notes
required to be delivered pursuant to this Amendment.

         IN WITNESS WHEREOF, the parties hereto have executed this Amendment as
of the day and year first above written.

                                   PREMIUM STANDARD FARMS, INC.,
                                   A DELAWARE CORPORATION

                                   BY:  /S/ WILLIAM PATTERSON
                                        ---------------------------------------
                                   ITS:
                                        ---------------------------------------

                                   CGC ASSET ACQUISITION CORP.
                                   A DELAWARE CORPORATION

                                   BY:  /S/ WILLIAM PATTERSON
                                        ---------------------------------------
                                   ITS:
                                        ---------------------------------------

                                       14
<PAGE>   15
                                   U.S. BANCORP AG CREDIT, INC. (F/K/A FBS
                                   AG CREDIT, INC.), AS AGENT AND AS A LENDER
                                   950 17TH STREET, SUITE 350
                                   DENVER, COLORADO  80202

                                   BY:  /S/ RONAL E. VAN STEYN
                                        ---------------------------------------
                                   ITS: V.P.
                                        ---------------------------------------

                                   FARM CREDIT SERVICES OF WESTERN MISSOURI,
                                   PCA

                                   BY:  /S/ TERRY EIDSON
                                        ---------------------------------------
                                   ITS: SENIOR VICE PRESIDENT
                                        ---------------------------------------

                                   MERCANTILE BANK NATIONAL ASSOCIATION

                                   BY:  /S/ WAYNE C. LEWIS
                                        ---------------------------------------
                                   ITS: VICE PRESIDENT
                                        ---------------------------------------

                                   HARRIS TRUST AND SAVINGS BANK

                                   BY:  /S/ BRIAN J. MOELLER
                                        ---------------------------------------
                                   ITS:
                                        ---------------------------------------

                                   CREDIT AGRICOLE INDOSUEZ

                                   BY:  /S/ W. LEROY STARZ AND DAVID BOUHL
                                        ---------------------------------------
                                   ITS: FIRST VICE PRESIDENT  AND HEAD OF CORP.
                                        ---------------------------------------
                                        BANKING, CHICAGO
                                        ---------------------------------------

                                   HELLER FINANCIAL, INC.

                                   BY:  /S/
                                        ---------------------------------------
                                   ITS:
                                        ---------------------------------------

                                       15<PAGE>   1
                                                                  Exhibit 4.3(c)

                      SECOND AMENDMENT TO CREDIT AGREEMENT
                      BETWEEN U.S. BANCORP AG CREDIT, INC.
                 AS AGENT FOR ITSELF AND CERTAIN OTHER LENDERS
                                      AND
                          PREMIUM STANDARD FARMS, INC.
                             DATED AUGUST 27, 1997

     This Second Amendment to Credit Agreement (this "AMENDMENT") is made this
26th day of February, 1999 among PREMIUM STANDARD FARMS, INC., a Delaware
corporation ("PREMIUM"), CGC ASSET ACQUISITION CORP., a Delaware corporation
("ASSET SUB" and collectively with Premium, the "BORROWER"), the financial
institutions listed on the signature pages hereof (collectively the "LENDERS"
and individually a "LENDER") and U.S. BANCORP AG CREDIT, INC., a Colorado
corporation (the "AGENT"), in its capacity as Agent for the Lenders under the
Credit Agreement (hereinafter defined).

                                    RECITALS

     A. The Borrower, the Agent and the Lenders have each acknowledged the
existence of breaches or violations of certain of the provisions of the Credit
Agreement dated as of August 27, 1997 among the Borrower, the Agent and the
Lenders (as amended, extended, replaced, restated and/or supplemented from time
to time, the "CREDIT AGREEMENT"). The Agent and the Lenders have agreed to waive
these particular breaches or violations and continue to make revolving credit
advances under the Credit Agreement on the terms and conditions herein
contained.

     B. The Borrower desires to enter into the following transactions (the
"TRANSACTIONS"):

          (i) The Borrower proposes to convey to the City of Gallatin, Missouri,
     Daviess County Missouri and/or the State of Missouri, the Borrower's office
     building complex in exchange for a release by the City of Gallatin and
     Daviess County and/or the Missouri Department of Economic Development of
     the Borrower's commitments to complete the infrastructure of the business
     park surrounding the office building (the "OFFICE BUILDING TRANSACTION");
     and

          (ii) The Borrower proposes to sell approximately 915 acres of real
     property known as the Green Hills property to Dave Perkins for $300 per
     acre (this transaction is hereinafter referred to as the "PERKINS
     TRANSACTION" and shall be referred to collectively with the Office Building
     Transaction as the "TRANSACTIONS").

     C. The Credit Agreement currently prohibits the Borrower from entering into
the Transactions. The Borrower has requested that the Agent and the Lenders
consent to the Borrower entering into the Transactions, and the Agent and the
Lenders are willing to do so on the terms and conditions herein contained.

<PAGE>   2

     NOW, THEREFORE, in consideration of the foregoing and of the terms and
conditions contained in the Credit Agreement and this Amendment, and of any
loans or extensions of credit or other financial accommodations at any time made
to or for the benefit of the Borrower by Agent and the Lenders, the Borrower,
the Agent and the Lenders agree as follows:

     1. Definitions. Capitalized terms used and not defined in this Amendment
shall have the meanings given to such terms in the Credit Agreement.

     2. Representation and Warranty as to Transactions, and Consent to
Transactions. The Borrower represents and warrants to the Agent and the Lenders
that the factual information taken as a whole in the materials furnished by or
on behalf of the Borrower to the Agent or any Lender for purposes of or in
connection with the Transactions, does not contain any untrue statement of
material fact or omit to state any material fact necessary to keep the
statements contained therein from being misleading as of the date of this
Agreement. In reliance on the foregoing representation and warranties, the Agent
and the Lenders consent to the Transactions notwithstanding anything contained
in the Credit Agreement prohibiting the Transactions.

     3. Acknowledgment of Specific Defaults. The Borrower, the Agent and each of
the Lenders acknowledge the existence of the following Defaults and Matured
Defaults: (a) the Borrower's monthly financial statements and Borrowing Base
Certificate for the month ending September 26, 1998 were not delivered to the
Agent and the Lenders in a timely manner as required by Section 9.1 of the
Credit Agreement; (b) as of October 31, November 28 and December 26, 1998 and as
of January 30, 1999, the aggregate principal amount of all Revolving Loans, plus
the aggregate face amount of all outstanding LC's, exceeded the Borrowing Base,
and the Borrower failed to cure or otherwise eliminate such excess in the manner
required by Section 4.3 of the Credit Agreement; and (c) as of October 31,
November 28 and December 26, 1998 and as of January 30, 1999, the Borrower had a
Fixed Charge Coverage Ratio (calculated on a rolling twelve month basis) of less
than 0.80 to 1.0, the level required by Section 9.6 of the Credit Agreement.

     4. Acknowledgment of Anticipated Defaults. The Borrower, the Agent and each
of the Lenders acknowledge the likelihood of additional Defaults and Matured
Defaults occurring because, when the Borrower's February 27, March 27, April 24
and May 29, 1999 Borrowing Base Certificates are delivered to the Agent and the
Lenders, each such Borrowing Base Certificate is expected to show that the
aggregate principal amount of all Revolving Loans, plus the aggregate face
amount of all outstanding LC's, will then exceed the Borrowing Base. The
Borrower, the Agent and each of the Lenders further acknowledge, however, that
the amount by which the aggregate principal amount of all Revolving Loans, plus
the aggregate face amount of all outstanding LC's, exceeds the Borrowing Base
(an "EXCESS") shall not exceed: (a) $13,000,000 during February, 1999, (b)
$10,000,000 during March, 1999, (c) $7,000,000 during April, 1999, or (d)
$3,000,000 during May, 1999.

     5. Waiver of Specific Defaults. The Agent and the Lenders waive the
specific Defaults and Matured Defaults acknowledged in Section 3 of this
Amendment, and the anticipated Defaults or Matured Defaults described in Section
4 of this Amendment. The foregoing waivers shall be automatically withdrawn and
rescinded without notice of any kind: (a) if any Borrowing Base Certificate is
not delivered to the Agent and the Lenders when the

                                       2
<PAGE>   3

same is due; (b) if the Borrower's June 26, 1999 Borrowing Base Certificate,
when delivered to the Agent and the Lenders, shows the existence of an Excess;
or (c) if the Excess shown on any Borrowing Base Certificate delivered to the
Agent and the Lenders, exceeds the expected amount of such Excess as set forth
in Section 4. Except as expressly set forth in this Section 5, the Agent's or
the Lenders' failure, at any time or times hereafter, to require strict
performance by Borrower of any provision of the Credit Agreement, including
without limitation, Sections 9.1, 4.3 and 9.6, shall not waive, affect or
diminish any right of the Agent and/or the Lenders thereafter to demand strict
compliance therewith and performance thereof, and shall not suspend, waive or
affect any other Default or Matured Default, whether the same is prior or
subsequent thereto and whether of the same or a different kind or character.

     6. New Defined Terms. Section 1.1 of the Credit Agreement, Defined Terms,
is amended to add the following new definitions which shall read in full as
follows:

          "AMENDMENT #2 CLOSING DATE" shall mean February 26, 1999.

          "TEMPORARY ADDITIONAL MARGIN" shall mean additional interest at the
     rate of one eighth of one percent (0.125%), which additional interest rate
     shall be in effect from February 1, 1999 until the first day of the fiscal
     quarter following any fiscal quarter at the end of which the Borrower both
     has a Fixed Charge Coverage Ratio of 1.0 to 1.0 or greater and is otherwise
     in full compliance with all terms, provisions and covenants of this
     Agreement.

     7. Interest. Paragraphs (a) and (b) of Section 3.1 of the Credit Agreement,
Interest, are amended to read in full as follows:

          (a) So long as no Matured Default has occurred or is continuing,
     during such periods as such Loan is a Reference Rate Loan, a rate per annum
     equal to the lesser of (i) the sum of the Reference Rate in effect from
     time to time plus the Applicable Margin plus (if then in effect) the
     Temporary Additional Margin, and (ii) the Highest Lawful Rate, payable
     monthly in arrears on the first day of each month commencing September 1,
     1997, and if such Loan is a Revolving Loan, on the Revolving Maturity Date,
     and if such Loan is a Term Loan, on the Term Maturity Date. With respect to
     each Reference Rate Loan, the rate of interest accruing shall change
     concurrently with each change in the Reference Rate as announced by U.S.
     Bank.

          (b) So long as no Matured Default has occurred or is continuing,
     during such periods as such Loan is a Eurodollar Rate Loan, a rate per
     annum during each Interest Period for such Loan, equal to the lesser of (i)
     the sum of the Eurodollar Rate for, such Interest Period for such Loan plus
     the Applicable Margin plus (if then in effect) the Temporary Additional
     Margin and (ii) the Highest Lawful Rate, payable in arrears on the first
     day of each month during the applicable Interest Period, on the ninetieth
     day of such Interest Period if such Interest Period

                                       3
<PAGE>   4

     exceeds three months, and on the last day of such Interest Period, and if
     such Loan is a Revolving Loan, also on the Revolving Maturity Date, and if
     such Loan is a Term Loan, also on the Term Maturity Date.

     8. Financial Statements and Other Information. Clauses (b) and (c) of
Section 9.1 of the Credit Agreement are amended to read in full as follows:

          (b) as soon as practicable and in any event within thirty (30) days
     after the end of each monthly accounting period in each Fiscal Year of the
     Borrower: (i) consolidated statements of income and retained earnings of
     the Borrower for such monthly period and for the period from the beginning
     of the then current Fiscal Year to the end of such monthly period, and a
     consolidated balance sheet of the Borrower as of the end of such monthly
     period, setting forth in each case, in comparative form, figures for the
     corresponding periods in the preceding Fiscal Year, all in reasonable
     detail and certified as accurate by the chief financial officer or
     controller of the Borrower, subject to changes resulting from normal
     year-end adjustments, and (ii) statements of cash flow for such monthly
     period; and as soon as practicable and in any event within thirty (30) days
     after the end of each quarterly accounting period in each Fiscal Year of
     the Borrower (other than the end of the quarterly accounting period which
     is also the end of the Borrower's Fiscal Year): a compliance certificate of
     the chief financial officer or controller of the Borrower in the form
     attached as Exhibit 9C;

          (c) as soon as practicable and in any event within fifteen (15) days
     after the end of each month, a Borrowing Base Certificate for the Borrower
     computed as of the last day of such month, and as soon as practicable and
     in any event within two (2) days after a request therefor by the Required
     Lenders, a Borrowing Base Certificate for the Borrower computed as of the
     date specified by the Required Lenders, in all cases signed by the chief
     financial officer of the Borrower, together with, to the Agent only: (i)
     all Accounts owing by an Account Debtor that is a meat packer for the sale
     of "livestock" (as defined in PASA) if any Account owing by such Account
     Debtor is at that time unpaid for a period exceeding seven (7) days after
     the delivery date related thereto; (b) all Accounts owing by an Account
     Debtor that is not a meat packer or by an Account Debtor that is a meat
     packer for the sale of inventory other than "livestock" (as defined in
     PASA) if any Account owing by such Account Debtor is at that time unpaid
     for a period exceeding twenty-one (21) days after the original invoice date
     of the original invoice related thereto, (ii) a listing of the Borrower's
     accounts payable indicating which accounts payable are more than thirty
     (30) days past due, and (iii) a detailed listing of Inventory and other
     goods;

     9. Financial Covenants and Ratios. Section 9.6 of the Agreement is amended
to read in full as follows:

                                       4
<PAGE>   5

          The Borrower shall maintain:

          (a) a consolidated Tangible Net Worth of not less than $220,000,000 at
     all times;

          (b) a consolidated ratio of total liabilities to Tangible Net Worth of
     not more than 1.75 to 1.0 at all times;

          (c) consolidated Working Capital of not less $20,000,000 at all times
     through March 31, 2000 and not less than $30,000,000 thereafter,

          (d) a Fixed Charge Coverage Ratio (calculated on a rolling twelve
     month basis) as of the end of each fiscal quarter of the Borrower,
     beginning as of June 24, 2000, of not less 1.0 to 1.0 at all times; and

          (e) a consolidated EBITDA (calculated on a rolling four quarter basis)
     of not less than: (i) $2,500,000 through December 26, 1998, (ii)
     ($12,300,000) through March 27, 1999, (iii) ($15,200,000) through June 26,
     1999, (iv) ($2,200,000) through September 25, 1999, (v) $10,500,000 through
     December 25, 1999, and (vi) $34,500,000 through March 25, 2000.

     10. Capital Investment Limitations. Section 10.7 of the Agreement is
amended to read in full as follows:

          Without the prior written consent of the Required Lenders, during the
     period from January 1, 1999 through March 25, 2000, the Borrower shall not
     purchase, invest in or otherwise acquire additional real estate, equipment
     or other fixed assets in excess of $17,000,000 for maintenance (other than
     the replacement of breeding animals in the ordinary course of business not
     exceeding $10,000,000 during such period), and the Borrower shall not
     purchase, invest in or otherwise acquire additional real estate, equipment
     or other fixed assets for purposes other than maintenance. Beginning with
     the Borrower's fiscal quarter ending in June 2000, the Borrower shall not
     purchase, invest in or otherwise acquire additional real estate, equipment
     or other fixed assets (other than the replacement of breeding animals in
     the ordinary course of business and the replacement of obsolete and worn
     out Equipment in the ordinary course of business) which would cause its
     Capital Spending Amount in any one Fiscal Year to exceed the lesser of: (a)
     the maximum amount that would maintain the Borrower's consolidated Fixed
     Charge Coverage Ratio for such Fiscal Year at the level required in Section
     9.6(d), (b) $43,000,000, or (c) the following specific limits: (i)
     $36,000,000 during the Borrower's 2001 Fiscal Year, and (ii) $32,000,000
     during the Borrower's 2002 Fiscal Year plus the amount (if any) by which
     the Borrower's capital expenditures during its 2001 Fiscal Year were less
     than the specific limit for that Fiscal Year.

                                       5
<PAGE>   6

     11. Payment of Subordinated Debt. Section 10.14 of the Agreement is amended
to read in full as follows:

          The Borrower shall not directly or indirectly, pay, prepay, redeem or
     purchase, or deposit funds or property for the payment, prepayment,
     redemption or purchase of the indebtedness of Premium, of Asset Sub or of
     both, which is subordinated to the payment of any portion of the
     Liabilities. Without limiting the generality of the foregoing: (a) through
     the end of the Borrower's 2000 Fiscal Year, the Borrower shall not pay any
     principal of or interest on the PIK Notes other than the payment of
     interest through the issuance of additional PIK Notes unless otherwise
     approved in writing by the Required Lenders, and (b) after the end of the
     Borrower's 2000 Fiscal Year, the Borrower shall not pay any principal of or
     interest on the PIK Notes unless no Default or Matured Default exists at
     the time of such payment or would be created by such payment.

     12. Construction of Hog Production Facilities. Section 10.16 of the Credit
Agreement, Construction of Hog Facilities, is amended to read in full as
follows:

          The Borrower shall not construct any hog production facilities
     (whether as part of its Texas expansion program or otherwise) without the
     prior written consent of the Required Lenders.

     13. Effective Date Adjustment Fee. In the event the Amendment #2 Closing
Date occurs on a date other than February 1, 1999, the changes made in the
definition of Applicable Margin shall be effective on February 1, 1999. In
addition, regardless of the date of the Amendment #2 Closing Date, the Borrower
agrees to pay to the Agent for the ratable benefit of the Lenders, an effective
date adjustment fee in the amount of Twenty Three Thousand Three Hundred Seventy
Five Dollars ($23,375.00). The effective date adjustment fee shall be due and
payable on the date of this Amendment, shall be fully earned on the date it
becomes payable, and at the option of the Agent shall be paid by Agent initiated
Revolving Loans.

     14. Amendment Fee. In consideration of the other changes in terms made
pursuant to this Amendment, the Borrower agrees to pay to the Agent for the
ratable benefit of the Lenders, an amendment fee in the amount of One Hundred
Thirteen Thousand Five Hundred Fifty and No/100ths Dollars ($113,550.00). The
amendment fee shall be due and payable on the date of this Amendment, shall be
fully earned on the date it becomes payable, and at the option of the Agent
shall be paid by Agent initiated Revolving Loans.

     15. Amendment of Exhibits. Exhibit 9B to the Credit Agreement, the Form of
Compliance Certificate, is replaced with Exhibit 9C to this Amendment.

     16. Representations and Warranties. To induce the Agent and the Lenders to
enter into this Amendment, the Borrower represents and warrants to the Agent and
the Lenders that except described in this Amendment, each and every
representation and warranty set forth in the Credit Agreement is true and
correct as of the date hereof, and shall be deemed remade by the Borrower as of
the date hereof.

                                       6
<PAGE>   7

     17. Conditions to Advances; Documentation. The effectiveness of this
Amendment shall be conditioned upon the execution and/or delivery of the
agreements, instruments and/or documents listed on Exhibit 8D attached hereto.

     18. Incorporation of Credit Agreement. The parties agree that this
Amendment shall be an integral part of the Credit Agreement, that all of the
terms set forth therein are incorporated in this Amendment by reference, and
that all terms of this Amendment are incorporated therein as of the date of this
Amendment. All of the terms and conditions of the Credit Agreement which are not
modified in this Amendment shall remain in full force and effect. To the extent
the terms of this Amendment conflict with the terms of the Credit Agreement, the
terms of this Amendment shall control.

     IN WITNESS WHEREOF, the parties hereto have executed this Amendment as of
the day and year first above written.

                                    PREMIUM STANDARD FARMS, INC.,
                                    A DELAWARE CORPORATION

                                    BY: /s/ Stephen Lightstone
                                        -------------------------------------
                                    ITS: Executive Vice President
                                        -------------------------------------

                                    CGC ASSET ACQUISITION CORP.
                                    A DELAWARE CORPORATION

                                    BY: /s/ John Meyer
                                        -------------------------------------
                                    ITS: Vice President
                                        -------------------------------------

                                       7
<PAGE>   8

                               U.S. BANCORP AG CREDIT, INC., AS AGENT AND AS A
                               LENDER
                               950 17TH STREET, SUITE 350
                               DENVER, COLORADO  80202

                               BY: /s/
                                   -------------------------------------
                               ITS: Vice President
                                   -------------------------------------

                               FARM CREDIT SERVICES OF WESTERN MISSOURI, PCA

                               BY: /s/
                                   -------------------------------------
                               ITS: Senior Vice President
                                   -------------------------------------

                               MERCANTILE BANK NATIONAL ASSOCIATION

                               BY: /s/ Wayne C. Lewis
                                   -------------------------------------
                               ITS: Vice President
                                   -------------------------------------

                               HARRIS TRUST AND SAVINGS BANK

                               BY: /s/
                                   -------------------------------------
                               ITS: Vice President
                                   -------------------------------------

                               CREDIT AGRICOLE INDOSUEZ

                               By: /s/ Katherine L. Abbott
                                   -------------------------------------
                               ITS: First Vice Presisdent
                                   -------------------------------------

                               By: /s/ W. Leroy Startz
                                   -------------------------------------
                               ITS: First Vice President
                                   -------------------------------------

                               HELLER FINANCIAL, INC.

                               BY: /s/
                                   -------------------------------------
                               ITS: Senior Vice President
                                   -------------------------------------

                                       8

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