7. DEBT OBLIGATIONS

The Company had notes and short-term obligations at December 31, 2001 and 2000 of $34.0 million and $87.8 million, respectively. The Company also has a $250.0 million 5-year revolving credit facility with a variable interest rate based on LIBOR. There were no borrowings on this facility as of December 31, 2001.

A summary of long-term debt at December 31 is as follows:

		2001		2000
Term A loan - quarterly installments through 2006;
(variable rate based on LIBOR)	$	325,000	$	-
Term B loan - quarterly installments through 2008;
(variable rate based on LIBOR)	250,000		-
Senior unsecured notes - due 2011; (8.75%)	350,000		-
Syndicated Loan Agreement - due 2001 through 2004;
retired 2001; (7.47%)	-		175,000
CoBank fixed interest loans - quarterly installments through 2008;
retired 2001; (5.41% to 7.85%)	-		186,000
The Prudential Insurance Co. of America - due 2002 through 2009;
retired 2001; (6.18% to 6.58%)	-		135,000
Industrial development revenue bond and other secured notes
payable - due 2002 through 2016; (.95% to 6.00%)	26,329		13,572
Capital Securities of Trust Subsidiary - due 2028; (7.45%)	190,700		190,700
Other debt	24,982		31,406
		1,167,011	731,678
Less current portion	19,546		68,936
Total long-term debt	$	1,147,465	$	662,742

During 2001, the Company obtained a Term A loan for $325.0 million and a Term B loan for $250.0 million. In addition, a long-term bond offering for $350.0 million, due 2011, was completed in November 2001. Debt covenants include certain minimum financial ratios that were all satisfied.

The early extinguishment of previous credit facilities in 2001 resulted in an extraordinary loss, net of income taxes, of $14.5 million.

The Company has loans to producers facilitated through the LOL Finance Co., a wholly-owned, consolidated subsidiary of Land O'Lakes. At December 31, 2001 and 2000, $42.6 million and $41.8 million, respectively, of long-term debt financed these loans.

Land O'Lakes Capital Trust I (the "Trust") was created for the sole purpose of issuing $200.0 million of Capital Securities and investing the proceeds thereof in an equivalent amount of debentures of the Company. The sole assets of the Trust, $206.2 million principal amount Junior Subordinated Deferrable Interest Debentures (the "Debentures") of the Company, bearing interest at 7.45% and maturing on March 15, 2028, are eliminated upon consolidation. The Capital Securities are guaranteed to the extent set forth in the Offering Memorandum of the Capital Securities by the Company and bear the same interest rate and maturity date as the Debentures.

During 2000, the Company purchased $9.3 million of Capital Securities, which resulted in an extraordinary gain, net of income taxes, of $3.6 million. The Company did not purchase any Capital Securities in 2001 and $190.7 million remained outstanding at December 31, 2001.

Interest paid, including interest paid on capital securities and net of amounts capitalized ($0.1 million, $1.5 million and $1.7 million in 2001, 2000 and 1999, respectively), was $55.7 million, $59.8 million and $49.9 million in 2001, 2000 and 1999, respectively.

The maturity of long-term debt for the next five years and thereafter is as follows:

Year		Amount
2002	$	19,546
2003	82,588
2004	77,519
2005	102,385
2006	77,336
2007 and thereafter	807,637

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