Document:

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                                                                    EXHIBIT 10.7

                              AMENDMENT NUMBER TWO
                                     TO THE
                              SANDERSON FARMS, INC.
                                       AND
                                   AFFILIATES
                          EMPLOYEE STOCK OWNERSHIP PLAN

            THIS AGREEMENT, made and entered into this 2nd day of December 2003,
by Sanderson Farms, Inc., a Mississippi corporation herein called the "Company";

            WHEREAS, the Company maintains Sanderson Farms, Inc. and Affiliates
Employee Stock Ownership Plan, as heretofore amended (the "Plan"); and

            WHEREAS, the Company desires to amend the Plan as hereinafter
provided.

            NOW, THEREFORE, pursuant to Section 17.1 of the Plan, the Plan is
hereby amended as follows:

            FIRST: Section 2.3 of the Plan is amended to read as follows:

      Section 2.3 "Annual Additions" means the sum of the following amounts
      credited to a Participant's Accounts and to any accounts of the
      Participant under a Related Plan for any Limitation Year:

            (a)   Employer contributions;

            (b)   Employee contributions;

            (c)   Forfeitures; and

            (d)   Amounts described at Sections 415(1)(1) and 419(A)(d)(2) of
                  the Code.

            Allocations to Participants' accounts of assets withdrawn from the
      unallocated stock account when securities are released from encumbrance
      pertaining to exempt loan transactions shall be included in the
      limitations prescribed in the preceding paragraph of this subsection. For
      purposes of

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      applying the limitations of IRC Section 415, to such allocations,
      contributions used by the Plan to pay the exempt loan are treated as
      Annual Additions to Participants' accounts.

            SECOND: The reference in the first sentence of Section 2.8 to
"Subparagraph 5.4(i)(6)" is changed to "Section 2.25."

            THIRD: The second and third paragraphs of Section 9.4 of the Plan is
hereby amended to read as follows:

                  A Participant whose employment with the Employers is
      terminated for a reason other than death, retirement, or Total and
      Permanent Disability, when he is fully vested in his account pursuant to
      Section 8.1 of the Plan shall be entitled to 100% of the balance in his
      account at the date of his termination of employment in cash and/or
      Qualifying Employers' Securities.

                  If such Participant whose employment is terminated for a
      reason other than death, retirement, or Total and Permanent Disability is
      not fully vested in his account pursuant to Section 8.1 of the Plan at the
      date of his termination, then he shall forfeit the portion of his rights
      and interest under the Plan and the Trust Agreement that is not vested as
      set forth in Section 8.1. The nonvested balance in the Participant's
      account shall be moved into a suspense account as of the date of the
      Participant's termination of employment and shall be forfeited as of the
      end of the Plan Year in which the Participant's fifth Break-in-Service for
      forfeiture purposes occurs. For the purposes of this paragraph, a
      Break-in-Service for forfeiture purposes shall be a Plan Year in which the
      Employee fails to complete more than 500 Hours of Service with the
      Employers. All amounts which become forfeitures as of the end of a Plan
      Year shall be removed from the suspense account and allocated along with
      the Employers' contribution for that Plan Year in accordance with Section
      6.3 of the Plan.

            FOURTH: Section 9.5(a)(l) of the Plan is hereby amended to read as
follows:

                  (a) (1) Except as provide in Section 9.4, unless a Participant
      otherwise elects, distributions will be made not later than the 60th day
      after the latest of the close of the Plan Year in which occurs:

                  (i) the date on which he attains age 65,

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                  (ii) the 10th anniversary of the date on which he became a
      Participant, or

                  (iii) his termination of employment with the Employer or a
      Related Employer.

            FIFTH: The first paragraph of Section 9.5(c) of the Plan is hereby
amended by adding thereto, at the end thereof the following new sentence:

      Notwithstanding the above, any Participant (other than a five-percent
      owner) who attains age 70-1/2 before 1999 may elect to commence
      distributions by April 1 of the calendar year following the calendar year
      in which he attains age 70-1/2, or elect to defer payment until April 1 of
      the calendar year following the calendar year in which the Participant
      retires.

            SIXTH: Section 9.6(b)(l) of the Plan is hereby amended by adding
thereto, at the end thereof, the following new sentence:

      Notwithstanding the above, effective for distributions on or after January
      1,1999, any amount that is distributed as a "hardship distribution" as
      that term is described in Section 401(k)(2)(B)(i)(IV) of the Code shall
      not be an Eligible Rollover Distribution and the Distributee may not elect
      to have any portion of such hardship distribution paid directly to an
      Eligible Retirement Plan.

            SEVENTH: Section 9.7 of the Plan is hereby amended to read as
follows:

      Section 9.7 Effect of Rehiring.

                  A Former Participant will become a Participant immediately
      upon returning to the employ of the Employers if such Former Participant
      has a nonforfeitable right to all or a portion of the account balance
      derived from Employer contributions at the time of termination from
      service. A Former Participant who did not have a nonforfeitable right to
      any portion of the account balance derived from Employer contributions at
      the time of termination from service will receive credit for participation
      purposes for Years of Service prior to a Break-in-Service if the number of
      consecutive one (1) year Breaks-In-Service is less than the greater of
      five (5) or the aggregate number of Years of Service before such break. If
      such Former Participant's number of consecutive one year Breaks-In-Service
      is less than the greater of five (5) or the aggregate number of Years of
      Service before such break, then such Participant shall participate

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      immediately. A Former Participant who had a nonforfeitable right to all or
      a portion of the account balance derived from Employer contributions at
      the time of the Participant's termination will receive credit for purposes
      of vesting for all Years of Service prior to a Break-in-Service if the
      Participant completes a Year of Service after returning to the employ of
      the Employer. A Former Participant who did not have a nonforfeitable right
      to any portion of the account balance derived from Employer contributions
      at the time of the Participant's termination will receive credit for
      vesting purposes for Years of Service prior to a Break-in-Service if (1)
      the Participant completes a Year of Service after returning to the employ
      of the Employer, and (2) the number of consecutive one (1) year
      Breaks-In-Service is less than the greater of five (5) or the aggregate
      number of Years of Service before such Breaks-In-Service.

                  A Former Participant who is rehired and again becomes a
      Participant pursuant to the preceding paragraph and prior to incurring
      five consecutive Breaks-in-Service will have any nonvested balance
      previously removed from the Participant's account maintained for the
      Participant prior to the Participant's earlier termination and moved into
      a suspense account as of the date of the Participant's earlier termination
      of employment pursuant to Section 9.4 above reinstated to the
      Participant's account with vesting of that account computed pursuant to
      the first paragraph of this section and Section 8.1 of the Plan.

                  For purposes of this section, a Break-in-Service shall mean a
      vesting computation period during which the Participant does not complete
      more than 500 Hours of Service.

            EIGHTH: Section 9.8 of the Plan is amended to read as follows:

      Section 9.8 Hardship Distributions

                  A Participant who is fully vested in his account in the Plan
      may make written application to the Administrative Committee to withdraw
      all or part of the Participant's account balance, less prior withdrawals.
      Such an application shall be approved by the Administrative Committee only
      if the Administrative Committee shall determine that the withdrawal is
      necessary to satisfy an immediate and heavy financial need of the
      Participant. For purposes of this Section 9.8, the following will be
      deemed to constitute immediate and heavy financial needs of a Participant:
      Distribution of such withdrawal shall be made to such Participant in a
      lump sum as soon as practicable after such withdrawal is approved by the
      Administrative Committee and shall be charged, as of the date of
      distribution, to such Participant's account.

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                  Withdrawal from a Participant's account pursuant to the
      provisions of this Section 9.8 shall not exceed the smaller of

            (1) the Participant's account balance; or

            (2) such amount as the Administrative Committee shall deem to be
      necessary or appropriate in light of the special immediate and heavy
      financial need established by the Participant to relieve such immediate
      and heavy financial, including any amounts necessary to pay any federal,
      state, or local income taxes or penalties reasonably anticipated to result
      from such withdrawal.

                  The Administrative Committee shall promulgate (and may from
      time to time amend) rules and regulations prescribing the procedures to be
      followed in requesting such a withdrawal and the circumstances which will
      be deemed to warrant a withdrawal to meet an immediate and heavy financial
      need. For purposes of this Section 9.8, a withdrawal shall be deemed
      warranted to satisfy an immediate and heavy financial need only if the
      Administrative Committee shall determine that the withdrawal is necessary
      to satisfy such immediate and heavy financial need. Determinations of the
      existence of an immediate and heavy financial need and of the amount
      necessary to meet the need shall be made by the Administrative Committee
      on the basis of all relevant facts and circumstances. Without limiting the
      circumstances which will be deemed to constitute immediate and heavy
      financial needs, a withdrawal will be deemed to be made on account of an
      immediate and heavy financial need of a Participant if the withdrawal is
      on account of the following:

            (a) medical expenses described in Section 213(d) of the Code
      incurred by the Participant, the Participant's spouse, or any dependents
      of the Participant (as defined in Section 152 of the Code) or necessary
      for these persons to obtain medical care described in Section 213(d) of
      the Code;

            (b) purchase (excluding mortgage payments) of a principal residence
      of the Participant;

            (c) payment of tuition for the next semester or quarter of post
      secondary education for the Participant, his or her spouse, children, or
      dependents;

            (d) the need to prevent the eviction of the Participant from his
      principal residence or foreclosure on the mortgage of the Participant's
      principal residence; or

            (e) such other circumstances as the Commissioner of Internal Revenue
      may, through the publication of revenue rulings, notices, and

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      other documents of general applicability, determine constitute immediate
      and heavy financial needs.

                  A distribution will not be treated as necessary to satisfy an
      immediate and heavy financial need of a Participant to the extent that the
      amount of the distribution exceeds the amount required to relieve the
      financial need or to the extent such need may be satisfied from other
      resources that are reasonably available to the Participant. The
      determination of whether a distribution is necessary to satisfy a
      financial need shall be made on the basis of all relevant facts and
      circumstances by the Administrative Committee. In making such
      determination with respect to any hardship distribution to be made, the
      Administrative Committee may rely upon a Participant's representation that
      the need can not be relieved by the following:

            (f) reimbursement or compensation by insurance or otherwise;

            (g) reasonable liquidation of the Participant's assets, to the
      extent that such liquidation would not itself cause an immediate and heavy
      financial need;

            (h) other distributions or nontaxable (at the time of the loan)
      loans from plans maintained by an Employer or any other employer;

            (i) all plans maintained by the Employer provide that the
      Participant may not make elective contributions for the Participant's
      taxable year immediately following the taxable year of the withdrawal in
      excess of the applicable limit under Section 402(g) of the Code for such
      next taxable year less the amount of such Participant's elective
      contributions for the taxable year of withdrawal; or

            (j) borrowing from commercial sources on reasonable commercial
      terms.

            NINTH: The second and third paragraphs of Section 10.1 are hereby
deleted and the following new paragraph is inserted in lieu thereof:

                  Where Qualifying Employers' Securities are not readily
      tradable on an established securities market, all valuations of Qualifying
      Employers' Securities shall be made by an independent appraiser who meets
      requirements similar to the requirements of the regulations prescribed
      under IRC Section 170(a)(1).

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            TENTH: The last sentence in Section 16.4 of the Plan is hereby
amended to read as follows:

                  If this Plan is not deemed to be a Top Heavy Plan after
      previously being so categorized, then the vesting schedule contained in
      Section 8.1 shall again be effective except that the vested percentage
      attained by Participants shall not be reduced thereby and Participants
      with three (3) or more Years of Service for vesting shall have the right
      to select the vesting schedule under which their vested accrued benefit
      will be determined.

            ELEVENTH: The second paragraph of Section 16.5 of the Plan is hereby
amended to read as follows:

                  For the purposes of the first sentence of this Section 16.5,
      the minimum Employer contribution provided to each non-Key Employee with a
      Year of Service for accrual of benefits shall be equal to three percent
      (3%) of such non-Key Employee's Annual Compensation. If, however, the
      Employer contribution under this and any other defined contribution plan
      required to be included in the Top Heavy Group and maintained by the
      Employers for any Key Employee for such Plan Year is less than three
      percent (3%) of such Key Employee's total Annual Compensation, then the
      Employer contribution for each Participant with a Year of Service for
      accrual of benefits shall equal the amount which results from multiplying
      such Participant's Annual Compensation times the highest contribution rate
      for the purpose of the preceding sentence. For purposes of this Section
      16.5, a non-Key Employee who is a Participant and is employed on the last
      day of the Plan Year shall be deemed to have a Year of Service for
      purposes of accrual of benefits for that Plan Year.

            TWELFTH: The amendments made hereby shall be effective as of
November 1, 1997, unless another effective date is specified herein.

            THIRTEENTH: The Plan, as hereinabove amended, shall remain in full
force and effect.

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            IN WITNESS WHEREOF, the Company has caused this instrument to be
executed and its seal to be hereunto affixed and attested, all by its officers
thereunto duly authorized, as of the 2nd day of December, 2003.

                                                  SANDERSON FARMS, INC.

                                          By /s/ ?????
                                             ---------------------------

                                          Its Trustee of Record

ATTEST:

By /s/ ?????
--------------------

Its TREASURER & CFO

                                       8<PAGE>

                                                                    EXHIBIT 10.8

                             AMENDMENT NUMBER THREE
                                     TO THE
                              SANDERSON FARMS, INC.
                                      AND .
                                   AFFILIATES
                          EMPLOYEE STOCK OWNERSHIP PLAN

            THIS AGREEMENT, made and entered into this 11th day of February,
2004, by Sanderson Farms, Inc., a Mississippi corporation herein called the
"Company";

            WHEREAS, the Company maintains Sanderson Farms, Inc. and Affiliates
Employee Stock Ownership Plan, as heretofore amended (the "Plan"); and

            WHEREAS, the Company desires to amend the Plan as hereinafter
provided.

            NOW, THEREFORE, pursuant to Section 17.1 of the Plan, the Plan is
hereby amended as follows:

            FIRST: Section 2.2 of the Plan is hereby deleted.

            SECOND: Article 2 of the Plan is amended by adding thereto the
following new Section 2.30:

      Section 2.30 "Valuation Date" means the last day of each Plan Year and any
      other date on which a special valuation is made, as designated by the
      Administrative Committee.

            THIRD: The first paragraph of Section 4.1 of the Plan is hereby
amended to read as follows:

                  Any Eligible Employee who has completed one (1) Year of
      Service with the Employers as an Eligible Employee and who has attained
      twenty-one (21) years of age shall be eligible to participate in the Plan
      as of the

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      Employers' Securities acquired by the Trustees may initially be credited
      to the Unallocated Stock Account, if both general accounts are maintained.
      As of each Valuation Date, Employers' contributions and forfeitures for
      the year, cash dividends received on Qualifying Employers' Securities, if
      any, the interest paid or payable during the year if any part of a loan is
      outstanding, and the shares of Qualifying Employers' Securities released
      from the Unallocated Stock Account, if maintained, shall be allocated
      among Participants' accounts in the following manner:

                  (a) Dividends on shares of Qualifying Employers' Securities
      allocated to Participants' stock accounts at the beginning of the year
      shall be credited to each Participant's account.

                  (b) any forfeitures of Qualifying Employers' Securities and
      any cash forfeitures which have matured during the year shall be allocated
      to Participant' accounts in the manner set forth in Section 6.3.

                  (c) Dividends on Qualifying Employers' Securities held in the
      Unallocated Stock Account, any interest received and any other items of
      income shall be allocated to Participants' accounts in the same ratio that
      the balances in each Participant's separate account or accounts bear to
      the aggregate accounts of all Participants at the beginning of such fiscal
      year, less distributions, if any, made in such year.

                  (d) Each Participant's share of the Employers' contributions
      (in whatever form) shall be credited to Participants' accounts in the
      manner set forth in Section 6.3.

                  (e) Shares of Qualifying Employers' Securities released from
      the Unallocated Stock Account, if maintained, equaling the balance of
      Participants' cash accounts divided by the share price shall be allocated
      to Participants' stock accounts. Additions to the Investment Account, if
      maintained, and Investment Account Income, if any, shall be computed on
      each Valuation Date and each Participant's account shall be credited with
      his share of additions to the Investment Account or Investment Account
      Income in the same ratio that the balances in each Participant's separate
      account or accounts bear to the aggregate accounts of all Participants
      immediately following the preceding Valuation Date, less distributions, if
      any, made since such Valuation Date. Investment Account Income is the net
      increase or decrease during the year attributable to its income and
      expenses, gains and losses whether or not realized in the Investment
      Account.

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            TENTH: Section 6,8 of the Plan is hereby amended to read as follows:

      Section 6.8 Annual Statements.

                  On or before the expiration of four (4)' calendar months after
      each Valuation Date which is as of the end of a Plan Year, or as soon as
      administratively feasible thereafter, the Administrative Committee shall
      upon information furnished by the Trustees, or the Trustees shall upon
      direction of the Administrative Committee, make reports to each
      Participant as of the Valuation Date, and the Valuation Date immediately
      preceding showing the balances in all of each Participant's account or
      accounts.

            ELEVENTH: Section 7.2 and Section 9,4 of the Plan are hereby amended
by deleting therefrom the term "Accounting Date" and substituting in lieu
thereof the term "Valuation Date."

            TWELFTH: The first paragraph of Section 8.3 of the Plan is hereby
amended to read as follows;

                  In the event of termination of a Participant's employment by
      reason of resignation or by any reason other than retirement at or after
      his normal retirement date, death or Total and Permanent Disability, the
      nonvested portion of the amount credited to his account shall be forfeited
      as provided in Section 9.4. As of the Valuation Date which is as of the
      end of a Plan Year, the Trustee in charge of the records shall allocate
      among the Participants' accounts any account balances forfeited under this
      Section 8.3 which have become available for forfeiture during the Plan
      Year then ending, This allocation shall be made in the same ratio as
      Employer contributions are allocated pursuant to Section 6.3.

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            THIRTEENTH: The amendments made hereby shall be effective as of
November 1, 1997, unless another effective date is specified herein.

            FOURTEENTH: The Plan, as hereinabove amended, shall remain in full
force and effect.

            IN WITNESS WHEREOF, the Company has caused this instrument to be
executed and its seal to be hereunto affixed and attested, all by its officers
thereunto duly authorized, as of the 11th day of February, 2004.

                                                  SANDERSON FARMS, INC.

                                          By /s/ ?????
                                             --------------------------

                                          Its Treasurer & CFO
ATTEST:

By /s/ ?????
   ---------------------

Its Director of Org. Dev.

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