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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 11-K
[X]Annual Report Pursuant to Section 15(d) of the Securities
Exchange Act of 1934
For the fiscal year ended December 31, 1996
or
[ ]Transition Report Pursuant to Section 15(d) of the
Securities Exchange Act of 1934
For the transition period from ___________________ to
_________________
Commission file number 1-44
A.Full title of the plan and the address of the plan, if
different from that of the issuer named below:
ADM SAVINGS AND INVESTMENT PLAN FOR HOURLY EMPLOYEES
B.Name of the issuer of the securities held pursuant to the
Plan and the address of its principal executive office:
ARCHER DANIELS MIDLAND COMPANY
BOX 1470
DECATUR, IL 62525
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ADM Savings And Investment Plan For Hourly Employees
Audited Financial Statements and Schedules
December 31, 1996 and 1995
Report of Independent
Auditors....................................... 3
Audited Financial Statements and Schedules
Statements of Net Assets Available for
Benefits...................... 4
Statements of Changes in Net Assets Available for
Benefits........... 5
Notes to Financial
Statements........................................ 6
Schedule Item 27a--Schedule of Assets Held for Investment
Purposes... 9
Schedule Item 27d--Schedule of Reportable
Transactions................ 10
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Report of Independent Auditors
Administrative Committee
ADM Savings and Investment Plan for Hourly Employees
Decatur, Illinois
We have audited the accompanying statements of net assets
available for benefits of the ADM Savings and Investment Plan
for Hourly Employees (the "Plan") as of December 31, 1996 and
1995, and the related statements of changes in net assets
available for benefits for the years then ended. These
financial statements are the responsibility of the Plan's
management. Our responsibility is to express an opinion on
these financial statements based on our audits.
We conducted our audits in accordance with generally accepted
auditing standards. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether
the financial statements are free of material misstatement. An
audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An
audit also includes assessing the accounting principles used
and significant estimates made by management, as well as
evaluating the overall financial statement presentation. We
believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements referred to above
present fairly, in all material respects, the net assets
available for benefits of the Plan at December 31, 1996 and
1995, and the changes in its net assets available for benefits
for the years then ended, in conformity with generally accepted
accounting principles.
Our audits were made for the purpose of forming an opinion on
the financial statements taken as a whole. The accompanying
supplemental schedules of assets held for investment purposes as
of December 31, 1996 and reportable transactions for the year
ended December 31, 1996 are presented for purposes of complying
with the Department of Labor's Rules and Regulations for
Reporting and Disclosure under the Employee Retirement Income
Security Act of 1974, and are not a required part of the
financial statements. The supplemental schedules have been
subjected to the auditing procedures applied in our audit of the
financial statements and, in our opinion, are fairly stated in
all material respects in relation to the financial statements
taken as a whole.
/s/ ERNST & YOUNG LLP
ERNST & YOUNG LLP
Minneapolis, Minnesota
April 25, 1997
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ADM Savings and Investment Plan for Hourly Employees
Statements Of Net Assets Available For Benefits
[CAPTION]
<TABLE>
December 31
1996 1995
___________________________
<S> <C> <C>
Assets
Cash/(cash overdraft) $ (13,414)$ (35)
Investments (Note 1)
Cash equivalents 46,579 6,847
Archer Daniels Midland Company
common stock 34,659,240 21,689,820
Pfizer Incorporated common stock 3,807,293 2,900,016
Commingled fixed income funds 335,087 462,335
Equity mutual funds 308,238 261,029
Commingled capital contract fund 171,358 231,942
__________ __________
39,327,795 25,551,989
Contributions receivable from employer 244,851 279,427
Contributions receivable from employees 367,079 418,965
__________ __________
Net assets available for benefits $39,926,311$26,250,346
========== ==========
</TABLE>
See accompanying notes.
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ADM Savings and Investment Plan for Hourly Employees
Statement of Changes in Net Assets Available for Benefits
[CAPTION]
<TABLE>
Year ended December 31
1996 1995
________________________________
<S> <C> <C>
Additions:
Contributions from Archer Daniels
Midland Company (Note 2) $ 3,012,891 $
2,802,731
Contributions from participating
employees (Note 2) 4,548,248 4,184,757
Transfer of Assets From Qualified
Merged Plan - 637,179
Dividend and interest income 1,694,123 1,081,291
_________ _________
9,255,262 8,705,958
Deductions:
Benefit payments
Common stock 464,947 929,307
Cash 1,824,569 298,829
_________ _________
2,289,516 1,228,136
_________ _________
6,965,746 7,477,822
Net realized and depreciation
(unrealized) appreciation
in fair value of investment 6,710,219
(1,022,145)
_________ _________
Net increase 13,675,965 6,455,677
Net assets available for benefits
at beginning of year 26,250,346 19,794,669
__________ __________
Net assets available for benefits
at end of year $39,926,311 $26,250,34
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========== ==========
</TABLE>
See accompanying notes.
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ADM Savings And Investment Plan For Hourly Employees
Notes To Financial Statements
December 31, 1996
1. Significant Accounting Policies
Basis of Accounting
The accounting records of the Plan are maintained on the accrual
basis.
Investments
Investments are carried at fair value. Common stocks are valued
at the quoted market price on the last business day of the Plan
year. Investments in commingled and mutual funds are stated at
the reported net asset value on the last day of the Plan year.
Unallocated funds are invested in a short-term money market
account as deemed appropriate by the trustee.
Plan Expenses
Brokerage commissions, transfer taxes and other charges and
expenses in connection with the purchase or sale of securities
are charged against the trust fund and added to the cost of such
securities, or deducted from the sale proceeds, as the case may
be. Any remaining costs of administering the plan are currently
paid by ADM and its affiliates. While it is anticipated that
ADM and its affiliates will continue to pay these costs, the
Plan does permit the reasonable expenses of administering the
Plan to be paid from the trust fund. There are no charges or
deductions, other than taxes, that may be made against the trust
fund other than those described in this summary.
Plan Year
The Plan year is the twelve month period ending December 31,
corresponding to the tax year of the Company.
Use of Estimates
The preparation of financial statements in conformity with
generally accepted accounting principles requires management to
make estimates and assumptions that affect the amounts reported
in the financial statements and accompanying notes. Actual
results could differ from those estimates.
Reclassifications
Certain 1995 amounts have been reclassified to conform to the
1996 presentation.
2. Description of the Plan
The Plan is a defined contribution plan available to
substantially all hourly employees of the Company who have
completed one year of service. Under the terms of the Plan,
employees electing to participate can contribute from 1% to 6%
of their current gross cash compensation to the Plan, within
ERISA limitations. In addition, the Company will match 100% of
the first 2% employee contribution and 50% of the remaining 4%
employee contribution. All contributions are received from the
Company in the form of Archer Daniels Midland Company common
stock and are fully vested to the participant.
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ADM Savings And Investment Plan For Hourly Employees
Notes To Financial Statements (continued)
The full value of an employee's account is payable following
termination of employment. Withdrawal of shares acquired under
401(k) provisions is subject to hardship restrictions.
All plan assets are held and managed by National City Bank of
Minneapolis (trustee of the Plan). The trust will continue for
an indefinite period of time as provided by the Plan.
3. Investments
The Plan's investments are held by a bank administered trust
fund. During 1996 and 1995, the Plan's investments (including
investments bought, sold, as well as held during the year)
appreciated (depreciated) in fair value as follows:
[CAPTION]
<TABLE>
<S> <C> <C>
Net
Appreciation
(Depreciation)
in Fair Value Fair Value at
During Year End of Year
______________________________________
Year ended December 31, 1996
Cash equivalents $ - $ 46,579
Archer Daniels Midland Company
common stock $5,823,092 34,659,240
Pfizer Incorporated common stock862,691 3,807,293
Commingled fixed income fund (8,264) 335,087
Equity mutual funds 20,605 308,238
Commingled Capital Contract Fund 12,095 171,358
_________ _________
$6,710,219 $39,327,795
========= ==========
Year ended December 31, 1995
Cash equivalents $ - $ 6,847
Archer Daniels Midland Company
common stock (2,212,850) 21,689,820
Pfizer Incorporated common stock1,103,596 2,900,016
Commingled fixed income fund 39,504 462,335
Equity mutual funds 33,452 261,029
Commingled Capital Contract Fund 14,153 231,942
_______ __________
($1,022,145) $25,551,989
========== ==========
</TABLE>
At December 31, 1996 and 1995, the fair value of the Archer
Daniels Midland Company common stock and the Pfizer Incorporated
common stock each represented 5% or more of the Plan's net
assets.
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ADM Savings And Investment Plan For Hourly Employees
Notes To Financial Statements (continued)
4. Transactions with Parties-in-Interest
During the two years ended December 31, 1996, the Plan had the
following transactions related to Archer Daniels Midland
Company common stock:
1996 1995
_______________________
Number of common shares contributed 388,674 397,337
Number of common shares purchased 17,309 8,581
Cost of common shares purchased $ 336,076 $149,418
Cash dividends received $ 281,073 $205,707
Shares received through stock dividends71,004 51,197
Number of common shares sold 84,332 45,165
Market value of common shares sold $1,675,050 $795,972
Cost of common shares sold $1,201,657 $633,830
5. Plan Terminations
Although it has not expressed any intent to do so, the Company
has the right to terminate the Plan at any time. Upon
termination, all amounts in participants' accounts are 100%
vested.
6. Income Tax Status
The Plan has received a determination letter from the Internal
Revenue Service, dated April 5, 1996 stating that the Plan is
qualified under Section 401(a) of the Internal Revenue Code of
1986 (the "Code").
Once qualified, the Plan is required to operate in conformity
with the Code and ERISA to maintain its tax exempt status. The
administrator is not aware of any course of action or series of
events that have occurred that might adversely affect the Plan's
qualified status.
Distributions of benefits to participants, their estates or
beneficiaries, generally are subject to federal income tax as
either ordinary income or capital gain depending on the event
giving rise to the distribution and the method used.
7. Merger of Premiere Thrift Savings Plan
The Premiere Thrift Savings Plan, a qualified plan maintained by
Premiere Technologies, Inc., a subsidiary of the Company, was
merged into this plan and assets transferred in January 1995.
The participants allocated their transferred funds in the Plan's
investment options, except the ADM Stock Fund. All future
contributions will be invested in the ADM Stock Fund. However,
the merged Premiere participants have the option to re-allocate
the transferred funds within the other investment options while
they are active participants in the Plan.
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ADM Savings And Investment Plan For Hourly Employees
EIN: 41-012950
Plan: 027
Item 27a-Schedule of Assets Held For Investment Purposes
December 31, 1996
[CAPTION]
<TABLE>
<S> <C> <C>
<C>
Description of
Investment Including
Identity of Issue, Maturity Date, Rate of
Borrower, Lessor or Interest, Par or
Similar Party Maturity Value Cost Current Value
National City Bank-Prime
Cash money market fund * 46,579 units $ 46,579 $46,579
Archer Daniels Midland
Company * 1,575,420 shares
of common stock24,591,67634,659,240
Pfizer Incorporated 45,871 shares
of common stock 715,219 3,807,293
Equity mutual funds
Frank Russell--Real Estate
Securities Fund 1,112 units26,180 32,451
Frank Russell--Equity I Fund 1,709 units46,657 51,863
Frank Russell--Equity II Fund 407 units 11,400
12,225
Frank Russell--Equity III Fund 2,796 units78,011 82,984
Frank Russell--Equity Q Fund 1,582 units45,994 52,100
Frank Russell--International Fund 2,049 units72,557 76,615
__________ __________
280,799 308,238
Frank Russell--Commingled capital 10,286 units154,830 171,358
contract fund
Commingled fixed income funds
Federated High Yield Trust1,814 units 15,281 16,854
Federated International Income
Fund 5,726 units 60,197 66,132
Frank Russell--Fixed Income
I Fund 1,654 units 16,137 16,818
Frank Russell--Fixed Income
III Fund 11,209 units 229,672 235,283
__________ __________
321,287 335,087
__________ __________
Total assets held for investment purposes$26,110,390$39,327,795
========== ==========
</TABLE>
* Indicates party-in-interest to the Plan.
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ADM Savings And Investment Plan For Hourly Employees
EIN: 41-012950
Plan: 027
Item 27d--Schedule of Reportable Transactions
Year ended December 31, 1996
[CAPTION]
<TABLE>
<S> <C> <C>
<C> <C> <C>
Net
Purchase Selling Cost of Gain
Identity of Party Involved Description of Asset/TransactionPrice Price Asset
(Loss)
Category (iii)-Series of
Transactions
National City Bank Prime Cash Money Market Fund:
Purchased 1,982,418 units
in 105 transactions $1,982,418 $1,982,418
Sold 1,942,686 units in
76 transactions $1,942,6861,942,686 $ -
Archer Daniels Midland Company Archer Daniels
Midland Company
common stock
Received for 401(k) plan
contribution 388,674
shares in 24 transactions7,561,139 7,561,139
Sold 84,332 shares in 44
transactions 1,675,050 1,201,657 473,393
Purchased 17,309 shares in
9 transactions 336,076 336,076
</TABLE>
There were no category (i), (ii) or (iv) transactions during the year.
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Signature
Pursuant to the requirements of the Securities Exchange Act of
1934, the Plan Administrator has duly caused this annual report
to be signed by the undersigned thereunto duly authorized.
ARCHER DANIELS MIDLAND COMPANY
/s/ DOUGLAS J. SCHMALZ
Douglas J. Schmalz
Vice President and Chief Financial
Officer
Dated: June 26, 1997
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Exhibit 23
CONSENT OF INDEPENDENT ACCOUNTANTS
We consent to the incorporation by reference in the Registration
Statement (Form S-8 No. 33-58387 dated April 3, 1995) pertaining
to the ADM Savings and Investment Plan for Hourly Employees of
our report dated April 25, 1997 with respect to the financial
statements and schedules of the ADM Savings and Investment Plan
for Hourly Employees included in this Annual Report (Form 11-K)
for the year ended December 31, 1996.
/s/ ERNST & YOUNG, LLP
ERNST & YOUNG LLP
Minneapolis, Minnesota
June 26, 1997
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