An excerpt from the President & CEO's Letter to Shareholders

This was an extraordinary year not only for Agrium and the agriculture sector, but also for the global economy. It was a year filled with dramatic swings in commodity and share prices, and it ended with the world facing what many believe will be the largest downturn in the world economy since the 1930s. I firmly believe that Agrium will continue to achieve solid results during this period of great uncertainty. Your Company is financially well-positioned, and more importantly, we are an integral link in providing food to a growing world. Food is the one product that takes priority over all other commodities. Consumers can postpone buying a new television, automobile or appliance, but food is fundamental in that it sustains life and is an important component of economies in wealthy and developing countries alike. Those in developing economies have recently incorporated higher quality food into their everyday diets, and they will do everything they can to maintain these diets.

Additionally, amid the recent market turmoil, and its impact on Agrium’s share price, one could easily overlook two simple yet important facts:

• In 2008, Agrium shattered previous records for net sales, profits and earnings and we start 2009 in an excellent financial position.
• We believe that the outlook for 2009 and beyond remains solid due to the agriculture industry’s underlying strong fundamentals, our competitive advantages and the successful implementation of our growth strategy over the past four years.