Grainnet

Farmers Commission Co. to Consolidate Holdings With Champaign Landmark Inc.

Our agricultural industry, in the past year, has gone through some of the most changes we have ever experienced.

Everything from grain prices to input costs and the related capital requirements has escalated at a pace few could have predicted.

Try to predict where these will go in the future is difficult at this point.

We have been working with the Board of Directors from Champaign Landmark, Inc. in Urbana, Ohio, to determine whether we can better serve the interests of our shareholders by addressing these changes together.

After months of analyzing all of our options, we have decided the best alternative is to plan for the future together.

At the Board Meeting on May 16, 2008, we unanimously adopted a “Plan of Consolidation” to present to you for approval later this summer.

The Board of Directors of Champaign Landmark, Inc. adopted this same plan at their Board Meeting on May 21, 2008.

The Farmers Commission Company and Champaign Landmark, Inc. recognize that we are competing in a global marketplace created by the worldwide demand for grain and the inputs needed to produce grain.

We must do whatever it takes to survive and prosper for the benefit of our shareholders in this rapidly changing environment.

We are now competing against other countries for the fertilizer we need to produce our crops.

The fertilizer manufacturers want to ship products by the most efficient way possible.

Today that means shipping in unit train quantities (65-90 cars) on the mainline rail where the cars can quickly be unloaded and returned to the manufacturer.

Without this access, our ability to supply the products needed at the most cost effective price is jeopardized.

Our plan is to construct a fertilizer facility at Kenton, Ohio. Fertilizer will need to be purchased as much as a year or more in advance to insure we have the supply when our customers need it.

The new fertilizer facility will give us the ability to store more tons for a longer period of time.

As fertilizer becomes more of a worldwide commodity, we must be flexible enough to access products from the best markets available.

With the addition at Kenton, we could rail products from the Gulf of Mexico and Atlantic seaboard or barge up the Mississippi River.

The consolidated company will have a more direct access to the end users of our grain by becoming a supplier with the volume to deliver a significant portion of their needs.

With our widespread production area, we become a more dependable supplier who can adjust to the impact weather has on local growing areas.

We will be able to supply large volumes of grain faster by shipping more unit trains on the mainline rail and larger units on the shortline rail.

The Farmers Commission Company and Champaign Landmark, Inc. are well-established cooperatives with histories of success and performance.

We share similar business philosophies, organizational culture and a strong desire to fulfill the needs of our members.

We are committed to doing whatever it takes to “continue to provide you with the value and service you have come to expect.”

The future belongs to those that anticipate, recognize and manage challenges and opportunities with a well-developed strategic plan.

We feel the adopted “Plan of Consolidation” is the best option to insure our combined efforts continues at this level of performance.