EXHIBIT 12
<PAGE>
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES AND PREFERRED DIVIDENDS
COMBINED
<TABLE>
<CAPTION>
AGWAY INC. AND CONSOLIDATED SUBSIDIARIES
FOR THE YEARS ENDED JUNE
(THOUSANDS OF DOLLARS)
---------------------------------------------------------------------------
2000 1999 1998 1997 1996
------------ ------------ ------------ ------------- ------------
<S> <C> <C> <C> <C> <C>
Earnings before income taxes and
member refunds.................................... $ 13,015 $ 23,200 $ 30,184 $ 13,226 $ 17,531
Fixed charges - Interest.......................... 70,536 62,369 61,395 58,016 58,450
- Rentals........................... 5,272 4,768 4,131 3,434 2,828
------------ ------------ ------------ ------------- -----------
Total fixed charges............................... 75,808 67,137 65,526 61,450 61,278
------------ ------------ ------------ ------------- -----------
Adjusted net earnings............................. $ 88,823 $ 90,337 $ 95,710 $ 74,676 $ 78,809
============ ============ ============ ============= ===========
Ratio of adjusted net earnings to total
fixed charges..................................... 1.2 1.3 1.5 1.2 1.3
============ ============ ============ ============= ===========
Deficiency of adjusted net earnings to
total fixed charges............................... N/D N/D N/D N/D N/D
============ ============ ============ ============= ===========
Fixed charges and preferred dividends combined:
Preferred dividend factor:
Preferred dividend requirements................ $ 3,060 $ 3,287 $ 3,522 $ 4,115 $ 4,255
Ratio of pre-tax earnings to
after-tax earnings*............................ 47.3% 55.8% 53.0% 64.3% 50.5%
Preferred dividend factor on
pre-tax basis.................................. 6,469 5,891 6,645 6,400 8,426
Total fixed charges (above)....................... 75,808 67,137 65,526 61,450 61,278
------------ ------------ ------------ ------------- -----------
Fixed charges and preferred dividends
combined.......................................... $ 82,277 $ 73,028 $ 72,171 $ 67,850 $ 69,704
============ ============ ============ ============= ===========
Ratio of adjusted net earnings to fixed
charges and preferred dividends
combined**........................................ 1.1 1.2 1.3 1.1 1.1
============ ============ ============ ============= ===========
Deficiency of adjusted net earnings to
fixed charges and preferred dividends
combined.......................................... N/D N/D N/D N/D N/D
============ ============ ============ ============= ===========
</TABLE>
* Represents pre-tax adjusted net earnings from continuing operations
divided by after-tax earnings, which adjusts dividends on preferred
stock to a pre-tax basis.
** Represents adjusted net earnings divided by fixed charges and preferred
dividends combined.
N/D No deficiency.
<PAGE>
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES AND PREFERRED DIVIDENDS
COMBINED
<TABLE>
<CAPTION>
AGWAY INC. (PARENT)
FOR THE YEARS ENDED JUNE
(THOUSANDS OF DOLLARS)
---------------------------------------------------------------------------
2000 1999 1998 1997 1996
------------ ------------ ------------ ------------- ------------
<S> <C> <C> <C> <C> <C>
Earnings before income taxes and
member refunds.................................... $ 1,993 $ 14,077 $ 20,243 $ (2,541) $ 19,323
Fixed charges - Interest.......................... 18,085 13,660 8,575 10,626 9,723
- Rentals........................... 3,193 3,017 2,604 2,135 1,614
------------ ------------ ------------ ------------- -----------
Total fixed charges............................... 21,278 16,677 11,179 12,761 11,337
------------ ------------ ------------ ------------- -----------
Adjusted net earnings............................. $ 23,271 $ 30,754 $ 31,422 $ 10,220 $ 30,660
============ ============ ============ ============= ===========
Ratio of adjusted net earnings to total
fixed charges..................................... 1.1 1.8 2.8 (a) 2.7
============ ============ ============ ============= ===========
Deficiency of adjusted net earnings to
total fixed charges............................... N/D N/D N/D (2,541) N/D
============ ============ ============ ============= ===========
Fixed charges and preferred dividends combined:
Preferred dividend factor:
Preferred dividend requirements................ $ 3,060 $ 3,287 $ 3,522 $ 4,115 $ 4,255
Ratio of pre-tax earnings to
after-tax earnings*............................ (12.0%) (279.6%) 124.6% (215.2%) 95.8%
Preferred dividend factor on...................
pre-tax basis.................................. (25,550) (1,176) 2,826 (1,913) 4,441
Total fixed charges (above)....................... 21,278 16,677 11,179 12,761 11,337
------------ ------------ ------------ ------------- -----------
Fixed charges and preferred dividends
combined.......................................... $ (4,222) $ 15,501 $ 14,005 $ 10,848 $ 15,778
============ ============ ============ ============= ===========
Ratio of adjusted net earnings to fixed
charges and preferred dividends
combined**........................................ 5.5 2.0 2.2 (b) 1.9
============ ============ ============ ============= ===========
Deficiency of adjusted net earnings to
fixed charges and preferred dividends
combined.......................................... N/D N/D N/D (628) N/D
=========== ============ ============ ============= ===========
</TABLE>
* Represents pre-tax adjusted net earnings from continuing operations
divided by after-tax earnings, which adjusts dividends on preferred
stock to a pre-tax basis.
** Represents adjusted net earnings divided by fixed charges and preferred
dividends combined.
N/D No deficiency.
(a) Adjusted net earnings are inadequate to cover total fixed charges.
(b) Adjusted net earnings are inadequate to cover total fixed charges and
preferred dividends combined.
