1. Mr. Chris Policinski
President & CEO
Land O’Lakes, Inc.

2. Theme of the Meeting
• Proud Past
• Strong Today
• Vibrant Tomorrow

3. Land O’Lakes
• Proud Past
– Founded in 1921; cooperative owned by
farmer-members; deep roots in the country
• Strong Today
– Size … $10 billion agriculture and food company
– Scope … farm to table
– Focus … branded business
– Reach … all fifty states, expanding global business,
30 years involvement in international development
– Social Responsibility … As a food company,
alleviating hunger is the centerpiece of our
philanthropic efforts
• Vibrant Tomorrow
– Focused on growth and innovation
– Information, insights, expertise key to competitive
advantage

4. Agriculture / Agribusiness
• Proud Past
– Amazing productivity story
• Strong Today
– Producing more, with fewer resources and
less impact on the environment
– Delivering a safe, accessible affordable food
supply
• Vibrant Tomorrow
– Capacity to capitalize on opportunity as population
grows and need for food increases
– Challenges to be met
A Call to Action

5. 50
100
150
200
250
300
2006968472601948
Proud Past - U.S. Ag Productivity Story
SOURCE: Productivity Growth in US Agriculture, USDA (2007); Economic Research Service,
American Farm Bureau Federation
1 Total output is an aggregation of crop and livestock commodities and related services
2 Total input is an aggregation of land, labor, capital and intermediate inputs like fertilizer, feed and seed
3 Disposable income spent on all food-related purchases, in and out of the home. This number falls to <6%
when only home consumption is considered.
Changes in U.S. agricultural output / inputs, since 1948
Index 1948 = 100
~250%
Farming
practices
Technology
▪ In 1930, % of income
spent on food was 25%
▪ Today, % of income
spent on food is 10%3
▪ In 1930, one farmer fed
10 people
▪ Today, one farmer feeds
155 people
▪ In 1930, agriculture
employed 22% of the
US workforce
▪ Today, it employs 2%
Total output 1
Total inputs
2

6. • Corn yields
– 1930 – 20 bushels/acre
– 1960 – 55 bushels/acre
– 2009 – 165 bushels/acre
• Wheat yields
– 1930 – 14 bushels/acre
– 1960 – 26 bushels/acre
– 2009 – 44 bushels/acre
• Soybean yields
– 1930 – 13 bushels/acre
– 1960 – 24 bushels/acre
– 2009 – 44 bushels/acre
U.S. Ag Productivity

7. U.S. Ag Productivity
Domestic
U.S. Pork Production Per Sow
1960-2001
0
5,000
10,000
15,000
20,000
25,000
1960 2009
U.S. Milk Production Per Cow
Lbs. per cow

8. U.S. Ag Productivity Drivers
• Adoption of modern business and
production management practices on the
farm
• Development and use of safe, proven
agricultural technologies

9. Strong Today –
Productivity AND Sustainability
• Dairy - 2007 vs. 1944 … per gallon of
milk used
– Used only 10% of the land; 35% of the water
– Generated only 24% of the manure; 43% of
the methane
• Crops - 2007 vs. 1996 …
– Environmental impact of crop protection
products reduced by 17% on biotech crop
acres
– In 2007, reduced on-farm fuel use provided
carbon dioxide equivalent to taking 6 million
cars off the roads

10. Strong Today – Food Accessibility
and Affordability
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
2,200
2,400
2,600
1930 1940 1950 1960 1970 1980 1990 2000 2010
Food expenditures as a share of disposable personal income
Billion dollars
$1.6 trillion
If we were spending the same
share of disposable personal
income on food as in 1930, the
U.S. families’ food bill would be
$1.6 trillion higher
Food spending
as share of
disposable
income at
1930’s level
Actual U.S. food
expenditures
SOURCE: USDA Economic Research Service

11. Vibrant Tomorrow
• The global population is expected
to rise from 6.8 billion today to 9
billion by 2050 – and a 70%
increase in food production will be
required to meet growing need

12. Vibrant Tomorrow
Well positioned, but plenty of work ahead.
• Challenges
– Growth
– Changing markets / consumer demands /
perceptions
– Finite resources … land and water
• “Business Pillar” response
– Address business fundamentals
– Tell agriculture’s story

13. Business Fundamentals
• Get the basics right
– Technology; quality
• Set aggressive performance goals
– Global perspective
• Balance short-term demands against
long-term point of view
– Generate margin for today’s earnings and a
strong balance sheet

14. Telling Agriculture’s Story –
Irony of Efficiency
Production Ag
Less than 2% of the U.S. population is
directly involved in production agriculture.

15. Vibrant Tomorrow –
Telling Agriculture’s Story
A Call to Action
Improve the image and reputation of agriculture
to counter:
• Decisions about agriculture being driven by
misinformation, opinion, emotion or even nostalgia
• Misinformation and misconceptions about agriculture
and the foods industry
• Those who believe there is only one right way to produce
the food needed to feed the world

16. “The world has the technology,
either available or well-advanced
in the research pipeline, to feed
a population of 10 billion people.
The more pertinent question is
whether farmers and ranchers
will be permitted to use this new
technology.”
Dr. Norman Borlaug

17. Not an “either / or” proposition
We don’t promote a single point-of-view
It’s about choice and co-existence
• Protecting producers’ right to choose to
use – or not use – proven, safe, beneficial
technologies
• Protecting consumers’ right to choose
from a variety of food products … those
that reflect what they value

18. Food Economic Political
Security Security Stability
We Have To Get This Right!
Most Publicized Food Riots … 2007-2010

19. Agriculture’s Amazing
Productivity Story
― Past
― Present
― Future