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Flexible Input Purchasing Options

We strive to keep a competitive pricing structure on all of our market segments. Some of the strengths our pricing startegies provide us are:

1. Flexibility to work with all sizes of operations.
2. Working alliances with our customers thorugh out the year

Some of the pricing strategies we use are listed below, along with brief explanations of each:

• Fall Application
  This program starts in Mid-August and rund through the end of November, generally. Products applied are carried until April 24th. If the producer needs an additional tax write-off and wishes to pay this bill early we will discount the invoice 4% for December payment and 3% for January payment. This program allows Agland and the producer to spread out the spring workload and still be advantageous to both from a cost standpoint.
  
• Prepay:
  This program is used in December/January and allows producers to prepay products with us for future delivery. This is primarily done for producer tax purposes.
  
• Preseason Contracting:
  This program takes place from January thorugh February. Under this program we work with the producer in anticipating his needs for the upcoming season. The advantage for him is we can lock products in at a price that provides a ceiling for his production costs and eases the process of providing budgets and cash flow projections for his financing needs. This allows us to bring in early season stocking inventories and control the inventories effectively.
  
• In Season:
  This is generally the highest price of the year and may also be viewed as a penalty for the account that does not choose to work with us on a close basis during the off-season. We still maintain a competitive price at this time.
  
• Truckload Pricing:
  This is a program that allows us to remain extremely competitive with the large producers. We ship 25-ton truckload lots directly to the producer at a reduced price. We do not run it through our plant locations or make several deliveries with our small tender trucks, thereby passing on cost savings.
• Chemical Terms:
  This allows us to compete with Western Sugar's harvest dating program. This covers chemicals and application delivered from March 1st through August 31st. Final billing on this account is November 25th and is due on or before December 25th.
• Summer Application:
  This program covers product delivered during the side-dress or sprinkler run season. Fertilizer products and application purchases from May 15th through July 25th may be applied to this program. Final billing is processed July 25th with payment due on or before December 25th.
• Private or Outside Financing Programs
  Farm Plan - Financing
  Pioneer/DuPont TruChoice - Financing
  DeKalb/Monsanto Farmflex - Financing
  

For more information about our financing options or an Agland 30-day convenience account, contact the Agronomy Division or our Corporate Offices directly.