EXHIBIT 5



Farmland Industries, Inc.
3315 North Oak Trafficway
Kansas City, Missouri 64116

Gentlemen:

      I am acting as the General Counsel for Farmland Industries, Inc., a Kansas
corporation (the "Company"), in connection with the Registration Statement on
Form S-1 (the "Registration Statement") under the Securities Act of 1933, as
amended (the "Securities Act"), with respect to the contemplated issuance by the
Company from time to time of Demand Loan Certificates and Subordinated Debenture
Bonds of the Company, which with respect to Demand Loan Certificates may be
issued pursuant to an Indenture entered into between the Company and UMB Bank,
National Association, and with respect to Subordinated Debenture Bonds may be
issued under an indenture entered into between the Company and Commerce Bank,
National Association, as trustee.  Said Demand Loan Certificates and
Subordinated Debenture Bonds, when issued and sold in accordance with this
Registration Statement presently to be filed with the Securities and Exchange
Commission, Washington, D.C., and registered in accordance with the laws of the
States in which the Demand Loan Certificates and Subordinated Debenture Bonds
are and will be sold, will constitute valid and binding obligations according to
their tenor and effect.  Capitalized terms used herein have the meanings set
forth in the Registration Statement, unless otherwise defined herein.

      I have examined the originals, or certified, conformed or reproduction
copies of all records, agreements, instruments and documents as I have deemed
relevant or necessary as the basis for the opinions hereinafter expressed.  In
all such examinations, I have assumed the genuineness of all signatures on
original or certified copies and the conformity to original or certified copies
of all copies submitted to me as conformed or reproduction copies.  As to
various questions of fact relevant to such opinions, I have relied upon, and
assumed the accuracy of, certificates and statements and other information of
public officials, officers or representatives of the Company and others.

      Based upon the foregoing, and subject to the limitations set forth herein,
I hereby confirm the opinions attributed to me in the Registration Statement.

      I hereby consent to the filing of this opinion as an exhibit to the
Registration Statement (including any Amendment thereto) and to the references
to me under the captions "Legal Matters" in the Prospectus and "Legal Matters"
in any Prospectus Supplement forming a part of the Registration Statement.  In
giving these consents, I do not hereby admit that I am in the category of
persons whose consent is required under Section 7 of the Securities Act.


                                        Very truly yours,




                                        Robert B. Terry
December 9, 1997