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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 address of the plan, if different
from that of the issuer named below:
ADM SAVINGS AND INVESTMENT PLAN
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
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
Item 27a--Schedule of Assets Held for Investment
Purposes.......... 9
Item 27d--Schedule of Reportable
Transactions...................... 10
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Report Of Independent Auditors
Administrative Committee
ADM Savings and Investment Plan
Decatur, Illinois
We have audited the accompanying statements of net assets
available for benefits of ADM Savings and Investment Plan ("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
Statements Of Net Assets Available For Benefits
[CAPTION]
<TABLE>
December 31
1996 1995
___________________________
<S> <C> <C>
Assets
Cash/(cash overdraft) $ (39,444) $ 27
Investments (Note 1)
Cash equivalents 120,813 2,144
Archer Daniels Midland Company common
stock 262,745,956 205,004,592
Pfizer Incorporated common stock 2,825,735 2,950,794
Commingled fixed income funds 1,952,425 2,107,518
Equity mutual funds 3,759,827 2,938,280
Commingled capital contract fund 1,395,821 2,162,048
___________ ___________
272,800,577 215,165,376
Contributions receivable from employer 492,007 475,444
Contributions receivable from employees 714,360 689,500
___________ ___________
Net assets available for benefits $273,967,500$216,330,347
=========== ===========
</TABLE>
See accompanying notes.
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ADM Savings and Investment Plan
Statements 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 $6,344,619 $ 6,109,855
(Note 2)
Contributions from
participating employees 9,216,475 8,880,046
(Note 2)
Transfer of Assets From - 5,743,916
Qualified
Merged Plan - 9,234
Transfer of Assets - Other
Dividend and interest income 13,242,131 10,792,006
__________ __________
28,803,225 31,535,057
Deductions:
Benefit payments
Common stock 11,125,946 3,586,810
Cash 6,594,125 2,497,961
Other deductions (fees) - 8,759
__________ _________
17,720,071 6,093,530
__________ __________
11,083,154 25,441,527
Net realized and depreciation
(unrealized)appreciation in
fair value of investments 46,553,999 (34,507,623)
__________ ___________
Net increase (decrease) 57,637,153 (9,066,096)
Net assets available for
benefits at 216,330,347 225,396,443
beginning of year
___________ ____________
Net assets available for
benefits at end of year $273,967,500 $216,330,347
=========== ===========
</TABLE>
See accompanying notes.
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ADM Savings And Investment Plan
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 with the
1996 presentation.
2. Description of the Plan
The Plan is a defined contribution plan available to
substantially all salaried 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
Notes To Financial Statements (Continued)
The full value of an employee's account is payable following
termination of employment. Withdrawals by active employees are
permitted after completion of seven years of eligible service
under specific circumstances. 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 $ - $ 120,813
Archer Daniels Midland Company
common stock 46,088,526 262,745,956
Pfizer Incorporated common stock160,026 2,825,735
Commingled fixed income fund (29,959) 1,952,425
Equity mutual funds 224,556 3,759,827
Commingled capital contract fund110,850 1,395,821
__________ ___________
$46,553,999 $272,800,577
========== ===========
Year ended December 31, 1995
Cash equivalents $ - $ 2,144
Archer Daniels Midland Company
common stock (35,808,309) 205,004,592
Pfizer Incorporated common stock659,991 2,950,794
Commingled fixed income fund 148,884 2,107,518
Equity mutual funds 331,392 2,938,280
Commingled capital contract fund160,419 2,162,048
__________ ___________
$(34,507,623) $215,165,376
========== ===========
</TABLE>
At December 31, 1996 and 1995, the fair value of the Archer
Daniels Midland Company common stock represented 5% or more of
the Plan's net assets.
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ADM Savings and Investment Plan
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 804,159 850,844
Number of common shares purchased 118,568 103,745
Cost of common shares purchased $2,315,440 $1,564,832
Cash dividends received $2,311,965 $1,590,716
Shares received through stock dividends566,342 541,993
Number of common shares sold 278,048 164,272
Market value of common shares sold$5,465,520 $2,863,115
Cost of common shares sold $3,355,002 $1,827,772
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 10, 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 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
EIN: 41-012950
Plan: 020
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 Current
Similar Party Maturity Value Cost Value
National City Bank-Prime120,813 units $ 120,813 $ 120,813
Cash money market fund *
Archer Daniels Midland
Company * 11,942,998 shares
of common stock$70,978,047$262,745,9
56
Pfizer Incorporated 34,045 shares
of common stock1,180,438 2,825,735
Equity mutual funds
Frank Russell--Real Estate
Securities Fund 13,557 units 310,059 395,722
Frank Russell--Equity I20,854 units 552,772 632,705
Frank Russell--Equity II5,012 units 152,443 150,608
Frank Russell--Equity III34,104 units 938,437 1,012,203
Frank Russell--Equity Q19,390 units 546,876 638,717
Frank Russell--International24,870 units 858,973 929,872
__________ ___________
3,359,560 3,759,827
Frank Russell--Commingled capital contract
fund 83,788 shares
of common stock1,261,127 1,395,821
Commingled fixed income funds
Federated High Yield Trust10,570 units 91,170 98,196
Federated International Income
Fund 33,362 units 358,796 385,329
Frank Russell--Fixed Income
I Fund 9,634 units 95,042 97,976
Frank Russell--Fixed Income
III Fund 65,313 units 1,351,373 1,370,924
__________ ___________
1,896,381 1,952,425
__________ ___________
Total assets held for investment purposes$78,796,366$272,800,577
========== ===========
</TABLE>
* Indicates party-in-interest to the Plan.
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ADM Savings And Investment Plan
EIN: 41-012950
Plan: 020
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/Transaction Price Price Asset (Loss)
Category (iii)-Series of
Transactions
National City Bank Prime Cash Money Market Fund
Purchased 9,264,167 units
in 165 transactions $9,264,167 $9,264,167
Sold 9,145,498 units in
115 transactions $9,145,4989,145,498 $ -
Archer Daniels Midland Company Archer Daniels Midland Company
common stock
Received for 401(k) plan
contribution 804,159 shares
in 24 transactions 15,561,094 15,561,094
Sold 278,048 shares in 49
transactions 5,465,520 3,355,002 2,110,518
Purchased 118,568 shares in
6 transactions 2,315,440 2,315,440
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 of our
report dated April 25, 1997, with respect to the financial
statements and schedules of the ADM Savings and Investment Plan
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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</TABLE>
