EXHIBIT G

Performance criteria for FY 1999 - FY 2001 cycle include the
following: Aggregate Income, defined as the targeted income, before
taxes and extraordinary items1, for the entire three-year period, as
shown in the table below.
Performance goals and amounts funding the payout pool include the
following:



                                                                       

         Performance Level                    Aggregate Income               % of Net Earnings to Pool
            Below Target                          Below $                         0%
               Target                                $                            .83% of earnings
            Above Target                           Above$                         .83% of earnings






During the FY 1999 - FY 2001 cycle, Farmland Industries, Inc. must return to its
members at least $    in cash(2), or no payout will occur under this plan.

     (1)The Chief Financial Officer and the Chief Executive Officer must approve
     the classification of any item as "extraordinary".
     Transactions deemed as "extraordinary" and therefore excluded
     in the determination of income for variable compensation
     include:
     
     . The punitive portion of litigation results in favor of or
       against Farmland, excluding redemptive payments on normal business
       matter where the intent is to substantially restore net
       income to where it would have been had the incident not
       occurred.
     . Non-recurring (one-time) adjustment to income or expense
       such as the gain from settlement of the retirement plan or a 
       write-down of a major fixed asset.
     . The gain or loss on the disposal of a major asset or a group
       of assets.
     . The impact of adjustments resulting from LIFO inventory
       computations or reserves.
     . Other items as approved.
     Specific requests by an operating unit for treatment of an
     item as "extraordinary" must be approved by the Senior
     Management representative before review by the Chief Financial
     Officer and the Chief Executive Officer.
     <F2>
     Cash Returned to Members includes cash patronage, equity
     redemptions, additional equity redemptions due to tax savings
     on net operating loses (NOL), ownership retirements, capital
     credits, preferred stock dividends and preferred stock
     redemption and Cooperative Finance Company cash patronage
     refund.
     
     The attached Management Long Term Incentive Plan was approved
     by the Board of Directors at its meeting on August 26, 1993.
     
      Any Subsequent changes to the plan or to the individual
      participation within the plan will occur as outlined within 
      the document.





                      H.D. Cleberg, President and Chief Executive Officer