SYS-CON MEDIA Authors: Trevor Parsons, Sean Houghton, Glenn Rossman, Ignacio M. Llorente, Xenia von Wedel

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Agrium Announces First Quarter Results

CALGARY, ALBERTA -- (Marketwired) -- 05/06/14 -- ALL AMOUNTS ARE STATED IN U.S.$

Agrium Inc. (TSX: AGU) (NYSE: AGU) announced today consolidated net earnings ("net earnings") from continuing operations of $12-million ($0.08 diluted earnings per share) for the first quarter of 2014, compared with net earnings from continuing operations of $146-million in the first quarter of 2013 ($0.98 diluted earnings per share).

The 2014 first quarter results included a $31-million ($0.15 diluted earnings per share) share-based payments expense offset by net hedging gains of $32-million ($0.16 diluted earnings per share) on natural gas hedge positions. Excluding these items, net earnings from continuing operations would have been at $11-million ($0.07 diluted earnings per share).(1)

"Agrium's first quarter is traditionally our seasonally lowest earnings quarter and this was exacerbated this year by the record cold winter across North America. However, farmer sentiment is positive this spring and we are now seeing good demand for crop input products and services. Agrium achieved a record $788-million in operating cash flow this quarter, despite the lower net earnings, as we continue to focus on reducing working capital needs," commented Chuck Magro, Agrium's President and CEO.

Agrium is providing guidance for the second quarter of 2014 of $3.85 to $4.35 diluted earnings per share from continuing operations. This excludes derivative gains or losses and share-based payments expense in our estimated second quarter results.(2) The outage at our Carseland nitrogen plant is expected to impact second quarter earnings due to lost production and higher costs. The expected financial impact from the Carseland outage is estimated at $0.35 diluted earnings per share in the second quarter.(2)

(1) First quarter effective tax rate of 29 percent used for adjusted diluted earnings per share calculation.

(2) See disclosure in the section "Outlook, Key Risks and Uncertainties" in our 2014 first quarter Management's Discussion and Analysis and additional assumptions outlined on the following page.

MANAGEMENT'S DISCUSSION AND ANALYSIS

May 6, 2014

Unless otherwise noted, all financial information in this Management's Discussion and Analysis ("MD&A") is prepared using accounting policies in accordance with International Financial Reporting Standards ("IFRS") and is presented in accordance with International Accounting Standard 34 - Interim Financial Reporting. All comparisons of results for the first quarter of 2014 (three months ended March 31, 2014) are against results for the first quarter of 2013 (three months ended March 31, 2013). All dollar amounts refer to United States ("U.S.") dollars except where otherwise stated. The financial measures EBITDA and Adjusted EBITDA used in this MD&A are not prescribed by IFRS, or in the case of EBIT is an Additional IFRS financial measure. Such measures are defined in the "Additional IFRS and Non-IFRS Financial Measures" section of this MD&A.

The following interim MD&A is as of May 6, 2014 and should be read in conjunction with the Consolidated Interim Financial Statements for the three months ended March 31, 2014 (the "Consolidated Financial Statements"), and the annual MD&A and financial statements for the year ended December 31, 2013 included in our 2013 Annual Report to Shareholders to which readers are referred. The Board of Directors carries out its responsibility for review of this disclosure principally through its Audit Committee, comprised exclusively of independent directors. The Audit Committee reviews, and prior to publication, approves this disclosure, pursuant to the authority delegated to it by the Board of Directors. No update is provided to the disclosure in our annual MD&A where an item is not material or there has been no material change from the discussion in our annual MD&A. In respect of Forward-Looking Statements, please refer to the section entitled "Forward-Looking Statements" after the "Outlook, Key Risks and Uncertainties" section of this MD&A.

The major assumptions made in preparing our second quarter guidance are outlined below and include but are not limited to:


--  North American weather patterns will support condensed spring
    applications;
--  North America Wholesale fertilizer realized selling prices across all
    nutrients will be substantially lower than realized in the second
    quarter of 2013;
--  North America Wholesale produced nitrogen sales volumes will be
    approximately 15 percent lower than the sales volumes in the same
    quarter of 2013, largely due to the outage at the Carseland nitrogen
    facility that is expected to lower second quarter product availability
    by approximately 130,000 tonnes of urea and 30,000 tonnes of ammonia;
--  The average NYMEX gas price will not deviate significantly from
    approximately $4.50 per MMBtu;
--  North America Wholesale produced potash sales volumes will approximate
    the sales volumes realized in the second quarter of 2013 while phosphate
    sales volumes will be 10 to 15 percent lower than the sales volumes
    realized in the second quarter of 2013;
--  Retail North America crop nutrients margin percentages will be higher
    than the 19 percent realized in the second quarter of 2013;
--  Retail North America crop nutrients sales volumes will be approximately
    25 percent higher than in the second quarter of 2013 due mainly to the
    Viterra acquisition;
--  Retail North America crop protection products margin percentages will
    approximate the 22 percent realized in the second quarter of 2013; and
--  Guidance is issued excluding the second quarter effects of:
    --  Share-based payments;
    --  Gains or losses on foreign exchange and derivative hedge positions;
        and
    --  Earnings or losses related to discontinued operations.

2014 First Quarter Operating Results

CONSOLIDATED NET EARNINGS

Agrium's 2014 first quarter net earnings from continuing operations were $12-million, or $0.08 diluted earnings per share from continuing operations, compared to net earnings from continuing operations of $146-million, or $0.98 diluted earnings per share from continuing operations, for the same quarter of 2013.


Financial Overview

----------------------------------------------------------------------------
                                          Three months ended March 31,
(millions of U.S. dollars, except
 per share amounts and where noted)      2014      2013    Change  % Change
----------------------------------------------------------------------------
Sales                                   3,079     3,156       (77)       (2)
----------------------------------------------------------------------------
Gross profit                              556       705      (149)      (21)
----------------------------------------------------------------------------
Expenses                                  503       466        37         8
----------------------------------------------------------------------------
Earnings from continuing operations
 before finance costs and income
 taxes ("EBIT")                            53       239      (186)      (78)
----------------------------------------------------------------------------
Net earnings from continuing
 operations                                12       146      (134)      (92)
----------------------------------------------------------------------------
Net loss from discontinued
 operations                                (9)       (5)       (4)       80
----------------------------------------------------------------------------
Net earnings                                3       141      (138)      (98)
----------------------------------------------------------------------------
Diluted earnings per share from
 continuing operations                   0.08      0.98     (0.90)      (92)
----------------------------------------------------------------------------
Diluted loss per share from
 discontinued operations                (0.06)    (0.04)    (0.02)       50
----------------------------------------------------------------------------
Diluted earnings per share               0.02      0.94     (0.92)      (98)
----------------------------------------------------------------------------
Effective tax rate (%)                     29        27       N/A       N/A
----------------------------------------------------------------------------
----------------------------------------------------------------------------

Sales

Sales decreased by $77-million to $3.1-billion for the first quarter of 2014. Factors that affected our performance during the first quarter of 2014 compared to the first quarter of 2013 include the following:


--  Wholesale sales decreased by 11 percent to $1.1-billion due to lower
    prices across all product lines consistent with benchmark pricing,
    partially offset by higher sales volumes for urea, phosphate and potash;
    and
--  Retail sales increased by 4 percent to $2.2-billion largely due to the
    inclusion of results from Viterra Inc. ("Viterra") retail centers, which
    accounted for $266-million in sales during the current quarter, and an
    increase in crop nutrients sales volumes in Canada in the first quarter
    of 2014 following a shorter fall application season. This was partially
    offset by a decrease in crop protection sales primarily driven by
    unfavorable weather conditions throughout North America in the first
    quarter of 2014.

Gross Profit

Our gross profit for the first quarter of 2014 was $556-million, a decrease of $149-million compared to the first quarter of 2013. The main drivers of this variance consisted of the following:


--  Wholesale's gross profit decreased by $172-million for the first quarter
    of 2014, compared to the first quarter of 2013 primarily as a result of
    lower realized sales prices across all product lines consistent with
    benchmark pricing, which was partially offset by higher sales volumes
    from the carry forward of sales committed in the fourth quarter of 2013;
    and
--  Retail's gross profit increased by $11-million to $387-million for the
    first quarter of 2014, compared to the first quarter of 2013 due to the
    inclusion of results from Viterra, coupled with higher sales of
    livestock in Australia and the catch-up of crop nutrient sales volume in
    Canada in the first quarter of 2014 following a shorter fall application
    season. These were partially offset by lower crop protection sales due
    to unfavorable weather conditions throughout North America.

Expenses

Expenses increased by $37-million for the first quarter of 2014 compared to the first quarter of 2013. This difference is primarily a result of the following items:


--  An increase in Retail selling expenses primarily driven by increased
    costs of $50-million from the inclusion of Viterra results; and
--  An increase in general and administrative expenses due to a $15-million
    increase in share-based payments expense driven by an appreciation in
    share price in the first quarter of 2014.

The above increases in expenses were partially offset by a $24-million favorable change in commodity derivative gains. For further details, refer to the heading Wholesale in the section "Business Segment Performance".

Excluding Viterra, our Retail selling expenses would have been down $3-million, and our total expenses would have been $16-million lower.

The following table is a summary of our other expenses (income) for the first quarters of 2014 and 2013, respectively.


----------------------------------------------------------------------------
                                                         Three months ended
                                                             March 31,
(millions of U.S. dollars)                                   2014      2013
----------------------------------------------------------------------------

----------------------------------------------------------------------------
Realized and unrealized gain on commodity derivative
 financial instruments                                        (32)       (8)
----------------------------------------------------------------------------
Realized and unrealized gain on foreign exchange
 derivative financial instruments                             (15)      (13)
----------------------------------------------------------------------------
Foreign exchange loss                                          12        19
----------------------------------------------------------------------------
Interest income                                               (11)      (15)
----------------------------------------------------------------------------
Environmental remediation and asset retirement
 obligations                                                   (2)        1
----------------------------------------------------------------------------
Bad debt expense                                                5         5
----------------------------------------------------------------------------
Potash profit and capital tax                                   3         4
----------------------------------------------------------------------------
Other                                                           -        (4)
----------------------------------------------------------------------------
                                                              (40)      (11)
----------------------------------------------------------------------------
----------------------------------------------------------------------------

Effective Tax Rate

The effective tax rate on continuing operations was 29 percent for the first quarter compared to 27 percent for the same period last year due to a decrease in income earned in low tax jurisdictions.

BUSINESS SEGMENT PERFORMANCE

Retail

Retail's 2014 first quarter sales were $2.2-billion ($1.7-billion from North America), which is an increase of 4 percent compared to sales of $2.1-billion ($1.6-billion from North America) for the same period last year. Total gross profit was $387-million in the first quarter of 2014, compared to the $376-million achieved in the same period last year. The increase in sales and gross profit was primarily due to the contribution from the Viterra acquisition and improved results in Australia. Retail reported EBITDA of $17-million in the first quarter of 2014, compared to $25-million in the first quarter of last year. The decline was due to the increase in operating costs associated with the acquired Viterra operations and the delayed spring season impacting U.S. retail results this quarter. It is important to note that the first quarter is normally a negative earnings period for Canadian agri-retail business, with the majority of the earnings from this business achieved in the second and third quarters. International Retail was the major contributor to EBITDA this quarter, with $36-million reported in the first quarter of 2014, compared to $4-million in the same period last year.

Total crop nutrient sales were $896-million this quarter, compared to $802-million in the first quarter of 2013. The increase was due to additional sales from the acquired Viterra operations and stronger sales in the Australian market. This was partially offset by lower crop nutrient prices in North America compared to the same period last year. Gross profit for crop nutrients was $128-million this quarter, up slightly from the $121-million reported in the first quarter of 2013. Total crop nutrient margins as a percentage of sales were 14.3 percent in the first quarter of 2014, compared to 15.1 percent in the same period last year. The decrease is primarily due to a lower proportion of sales coming from the U.S., which typically has higher margins.

Crop protection sales were $730-million in the first quarter of 2014, compared to the $786-million in sales reported in the same period last year. The decrease in sales was due to unfavorable weather conditions in North America which delayed the start of the spring season. Total crop protection gross profit this quarter was $105-million, compared to $128-million reported in the first quarter of 2013. The decrease in gross profit was due to lower overall sales volumes and a change in geographic, product and customer mix due to the late season. As a result, total crop protection margins as a percentage of sales declined to 14.4 percent this quarter, compared to 16.3 percent in the same period last year.

Seed sales were $298-million in the first quarter of 2014, an increase from the $285-million earned in the first quarter last year. Gross profit was $46-million this quarter, up from $44-million earned in the first quarter of 2013. The increased sales and gross profit from seed can be primarily attributed to contributions from Viterra's canola seed business, while the delayed spring season in the U.S. pushed some higher margin seed sales into the second quarter. Total seed margins as a percentage of sales were 15.4 percent in the first quarter of 2014, in line with the same quarter last year.

Sales of merchandise in the first quarter of 2014 were $186-million, compared to $120-million in the same period last year. The large increase was due to the addition of the Viterra fuel and equipment business lines. Gross profit for this product group was $24-million this quarter, an increase from the $22-million reported in the first quarter of 2013.

Services and other sales were $122-million this quarter, compared to the $146-million reported in the first quarter of 2013. The decrease in sales was due to lower sales within Australia, specifically the export of wool, which has been discontinued due to low returns on investment. Gross profit was $84-million in the first quarter of 2014, compared to $61-million for the same period last year. The higher gross profit is attributed to improved margins from the livestock markets and other services in Australia and stronger sales and margins for services and other sales in North America, despite the late start to the spring season.

Retail selling expenses for the first quarter of 2014 were $436-million, an increase of $47-million compared to the $389-million reported in the first quarter of last year. The increase was due to higher payroll and depreciation costs associated with the Viterra operations. International retail selling expenses declined approximately 8 percent in the first quarter of 2014 compared to the same period last year. Total selling expenses as a percentage of sales were 19.5 percent in the first quarter of 2014, compared to 18.2 percent reported in the first quarter last year. The increase is due to the seasonal earnings profile of the Viterra business, which has costs throughout the year, but generates the majority of its earnings in the second and third quarters. Selling expenses as a percentage of sales in the second quarter of 2014 is expected to be similar to or lower than the second quarter of 2013.

Wholesale

Wholesale's 2014 first quarter sales were $1.1-billion, down slightly from the $1.2-billion reported in the same quarter last year. Gross profit was $171-million this quarter, compared to $343-million in the first quarter of 2013. Wholesale Adjusted EBITDA was $237-million in the first quarter of 2014 compared to $393-million reported in the same period last year, with the reduction primarily due to lower sales prices for all major crop nutrients.

Nitrogen gross profit in the first quarter of 2014 was $100-million compared to $186-million in the same quarter last year. Nitrogen sales volumes were 876,000 tonnes in the first quarter of 2014, up 6 percent from the same period last year, primarily due to the carry forward of strong urea demand from the fourth quarter of 2013. This was partially offset by lower ammonia sales volumes compared to the prior year. Realized sales prices for nitrogen declined to $438 per tonne compared to $524 per tonne in the first quarter of 2013 as a result of reduced benchmark nitrogen prices in the fourth quarter of 2013 and the normal two to three month lag in our realized prices relative to these benchmark prices. Nitrogen cost of product sold was $324 per tonne this quarter, an increase from the $300 per tonne reported in the first quarter of 2013 due to higher natural gas costs. Our average nitrogen gross margins were $114 per tonne this quarter, compared to $224 per tonne in the same period last year.

Agrium's average natural gas cost included in cost of product sold (which includes transportation and administration costs) was $5.02/MMBtu this quarter ($4.29/MMBtu including the impact of realized gains on natural gas derivatives), compared to $3.33/MMBtu for the same period in 2013 ($3.54/MMBtu including the impact of realized losses on natural gas derivatives). Hedging gains or losses are included in other expenses and not in cost of product sold, thus are not part of the calculation of gross profit. The average U.S. benchmark (NYMEX) natural gas price for the first quarter of 2014 was $4.90/MMBtu, compared to $3.35/MMBtu in the same quarter last year. The AECO (Alberta) basis differential was a $0.56/MMBtu discount to NYMEX in the first quarter of 2014, an increase from the $0.28/MMBtu discount in the first quarter of 2013.

Agrium has forward hedged gas for approximately 15 to 20 percent of our expected natural gas requirements for the 2016 to 2018 time period at a price of approximately $3.50/MMBtu. Combined with our historical levels of industrial contracts, which have an inherent margin hedge correlated to indexed natural gas prices, this raises our total gas hedge position for this three-year period to approximately one-third of our total gas needs. While we believe North American gas prices will remain highly attractive in future years relative to other parts of the world, the forward strip on North American gas prices have declined to a point where we believe this will lock in highly competitive margins and reduce the longer-term risk profile.

Potash gross profit for the first quarter of 2014 was $46-million, compared to $84-million reported in the same quarter last year. The decrease was driven by lower benchmark and realized sales prices, as well as lower international sales volumes compared to the same period last year, which was partially offset by increased domestic sales volumes. Domestic sales volumes increased to 292,000 tonnes this quarter, compared to 198,000 tonnes in the first quarter of 2013, due to pent up demand in the market at the end of the fourth quarter of 2013. International sales volumes decreased to 136,000 tonnes, compared to 180,000 tonnes in the same period last year, primarily due to logistical challenges in getting product to Vancouver ports. The shortfall in our current quarter's international sales commitments were met through purchased potash. Potash cost of product sold was $191 per tonne this quarter, slightly higher than the $183 per tonne reported in the first quarter of 2013 due to a higher percentage of domestic sales which include freight. Gross margin on a per tonne basis was $107 in the first quarter of 2014, compared to the $221 per tonne realized during the same quarter in 2013.

Phosphate gross profit was $2-million in the first quarter of 2014, compared to $37-million in the same quarter last year. The decrease was due to lower realized sales prices, partially offset by higher sales volumes. Realized phosphate sales prices were $544 per tonne this quarter, a decrease from $698 per tonne in the same period last year. Lower prices were reflective of weak global market conditions experienced in the fourth quarter of 2013 and early in the first quarter of 2014. Phosphate cost of product sold was $536 per tonne in the first quarter of 2013, consistent with the same period last year but down from the fourth quarter of 2013. Phosphate sales volumes were 308,000 tonnes in the first quarter of 2014, up 76,000 tonnes compared to the same period last year. Gross margin in the first quarter of 2014 was $8 per tonne compared to $161 per tonne in the same period last year.

Gross profit from ammonium sulfate and other products was $19-million this quarter compared to $30-million in the same period last year. The decrease was due to lower realized sales prices resulting from competitive pressures. Product purchased for resale gross profit was $4-million in the first quarter of 2014, a $2-million reduction from the same period last year as a result of decreases in all major global nutrient prices, partially offset by higher domestic and international sales volumes.

Wholesale expenses in the first quarter of 2014 were $16-million lower than the same period last year. The decrease was primarily driven by a $24-million increase in gains on natural gas derivatives, resulting from the increase in benchmark natural gas prices. Partially offsetting the gains was lower earnings from associates and joint ventures in the first quarter due to lower prices and sales volumes at both our Egypt and Argentina nitrogen facilities.

Other

EBITDA for our Other non-operating business unit for the first quarter of 2014 was a loss of $68-million, compared to a loss of $62-million for the first quarter of 2013. The unfavorable change was primarily driven by a $15-million increase in share-based payments expense driven by an appreciation of our share price during the first quarter of 2014 and improved share performance relative to our peer group which resulted in an increase in fair value of all of our share-based incentive compensation plans. This unfavorable change was partially offset by a $12-million favorable change in gross profit for the first quarter of 2014 compared to the first quarter of 2013 which reflected more inventory held in our Retail business unit not yet sold to external customers that is at a lower margin than the prior year.

FINANCIAL CONDITION

The following are changes to working capital on our Consolidated Balance Sheets in the three-month period ended March 31, 2014 compared to December 31, 2013.


----------------------------------------------------------------------------

(millions of
 U.S. dollars,
 except as       March 31, December 31,      $      % Explanation of the
 noted)               2014         2013 Change Change change in balance
----------------------------------------------------------------------------
Current assets
  Cash and cash        592          801  (209)  (26%) See discussion under
   equivalents                                        the section "Liquidity
                                                      and Capital
                                                      Resources".
----------------------------------------------------------------------------
  Accounts           2,143        2,105     38     2% Increased Wholesale
   receivable                                         trade receivables
                                                      consistent with the
                                                      start of the sales
                                                      season. This was
                                                      partially offset by
                                                      decreased Retail North
                                                      American trade
                                                      receivables and higher
                                                      collection of vendor
                                                      rebates in the first
                                                      quarter of 2014.
----------------------------------------------------------------------------
  Income taxes         106           78     28    36% First quarter tax
   receivable                                         installments paid
                                                      exceeded the first
                                                      quarter tax provision.
----------------------------------------------------------------------------
  Inventories        4,789        3,413  1,376    40% Seasonal Retail
                                                      inventory build-up in
                                                      preparation for the
                                                      spring season.
----------------------------------------------------------------------------
  Prepaid              379          805  (426)  (53%) Drawdown of prepaid
   expenses and                                       inventory as Retail
   deposits                                           took delivery of
                                                      product in
                                                      anticipation of the
                                                      spring season.
----------------------------------------------------------------------------
  Other current        124          104     20    19% Increase in the amount
   assets                                             of investments.
----------------------------------------------------------------------------
  Assets held          230          202     28    14% Increased accounts
   for sale                                           receivable and
                                                      inventory consistent
                                                      with the start of the
                                                      sales season.
----------------------------------------------------------------------------
Current
 liabilities
  Short-term           397          764  (367)  (48%) Repayments of
   debt                                               commercial paper as
                                                      customer collections
                                                      were made in the first
                                                      quarter.
----------------------------------------------------------------------------
  Accounts           5,721        3,985  1,736    44% Retail inventory
   payable                                            purchases and customer
                                                      prepayments made in
                                                      anticipation of the
                                                      spring season.
----------------------------------------------------------------------------
  Income taxes           2            2      -     0% -
   payable
----------------------------------------------------------------------------
  Current               54           58    (4)   (7%) -
   portion of
   long-term
   debt
----------------------------------------------------------------------------
  Current              115          112      3     3% -
   portion of
   other
   provisions
----------------------------------------------------------------------------
  Liabilities           59           44     15    34% Increase in accounts
   held for                                           payable consistent
   sale                                               with the start of the
                                                      sales season.
----------------------------------------------------------------------------
Working capital      2,015        2,543  (528)  (21%)
----------------------------------------------------------------------------
----------------------------------------------------------------------------

LIQUIDITY AND CAPITAL RESOURCES

Summary of Consolidated Statements of Cash Flows

Below is a summary of our cash provided by or used in operating, investing, and financing activities as reflected in the Consolidated Statements of Cash Flows:


----------------------------------------------------------------------------
                                               Three months ended March 31,
(millions of U.S. dollars)                          2014      2013    Change
----------------------------------------------------------------------------
Cash provided by operating activities                788       360       428
----------------------------------------------------------------------------
Cash used in investing activities                  (510)     (384)     (126)
----------------------------------------------------------------------------
Cash used in financing activities                  (467)      (39)     (428)
----------------------------------------------------------------------------
Effect of exchange rate changes on cash and
 cash equivalents                                    (3)       (7)         4
----------------------------------------------------------------------------
Decrease in cash and cash equivalents from
 continuing operations                             (192)      (70)     (122)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Cash and cash equivalents used in discontinued
 operations                                         (17)       (3)      (14)
----------------------------------------------------------------------------
----------------------------------------------------------------------------

The sources and uses of cash for the three months ended March 31, 2014 compared to the three months ended March 31, 2013 are summarized as follows:


----------------------------------------------------------------------------
----------------------------------------------------------------------------
Cash provided by operating activities - Drivers behind the $428-million
 source of cash increase
----------------------------------------------------------------------------
Source of cash    $219-million decrease in income taxes paid resulting
                  primarily from reduced earnings in 2013 and lower taxes
                  paid in the first quarter of 2014 compared to tax payments
                  made in the first quarter of 2013 on 2012 earnings.
                  $342-million increase in cash inflows from non-cash
                  working capital. This was primarily driven by less pre-
                  bought inventory in Retail as a result of lower purchase
                  prices which reduced the incentive to lock in inventory
                  coupled with a decrease in accounts receivable as a result
                  of lower Wholesale selling prices.
----------------------------------------------------------------------------
Cash used in investing activities - Drivers behind the $126-million use of
 cash increase
----------------------------------------------------------------------------
Use of cash       $122-million increase in capital expenditures primarily
                  related to the Vanscoy potash expansion project.
----------------------------------------------------------------------------
Cash used in financing activities - Drivers behind the $428-million use of
 cash increase
----------------------------------------------------------------------------
Use of cash       $414-million due to the repayment of $349-million short-
                  term debt as a result of customer collections early in the
                  first three months of 2014 compared to an issuance of $65-
                  million of short-term debt in the first three months of
                  2013.
----------------------------------------------------------------------------
----------------------------------------------------------------------------

Capital Expenditures

----------------------------------------------------------------------------
                                                         Three months ended
                                                              March 31,
(millions of U.S. dollars)                                    2014      2013
----------------------------------------------------------------------------
Sustaining capital                                             114        96
----------------------------------------------------------------------------
Investing capital                                              345       241
----------------------------------------------------------------------------
Total                                                          459       337
----------------------------------------------------------------------------
----------------------------------------------------------------------------

Our investing capital expenditures increased in the first three months of 2014 compared to the first three months of 2013 due to increased activity on the Vanscoy potash expansion project.

Short-term Debt

Our short-term debt of $397-million at March 31, 2014 is summarized in note 6 of our Consolidated Financial Statements.

OUTSTANDING SHARE DATA

The number of Agrium's outstanding shares at April 30, 2014 was approximately 144 million. At April 30, 2014, the number of shares issuable pursuant to stock options outstanding (issuable assuming full exercise, where each option granted can be exercised for one common share) was approximately nil.


SELECTED QUARTERLY INFORMATION

----------------------------------------------------------------------------
(millions of U.S.
 dollars,             2014   2013   2013    2013  2013   2012   2012    2012
except per share
 amounts)               Q1     Q4     Q3      Q2    Q1     Q4     Q3      Q2
----------------------------------------------------------------------------
Sales                3,079  2,867  2,796   6,908 3,156  3,093  2,768   6,669
----------------------------------------------------------------------------
Gross profit           556    740    629   1,699   705    974    730   1,831
----------------------------------------------------------------------------
Net earnings from
 continuing
 operations             12    110     80     744   146    358    140     859
----------------------------------------------------------------------------
Net (loss) earnings
 from discontinued
 operations             (9)   (11)    (4)      3    (5)    (4)   (11)      1
----------------------------------------------------------------------------
Net earnings             3     99     76     747   141    354    129     860
----------------------------------------------------------------------------
Earnings per share
 from continuing
 operations
 attributable to
 equity holders of
 Agrium:
----------------------------------------------------------------------------
 Basic                0.08   0.74   0.54    5.00  0.98   2.37   0.87    5.44
----------------------------------------------------------------------------
 Diluted              0.08   0.74   0.54    5.00  0.98   2.36   0.87    5.43
----------------------------------------------------------------------------
(Loss) earnings per
 share from
 discontinued
 operations
 attributable to
 equity holders of
 Agrium:
----------------------------------------------------------------------------
 Basic               (0.06) (0.08) (0.02)   0.02 (0.04) (0.03) (0.07)      -
----------------------------------------------------------------------------
 Diluted             (0.06) (0.08) (0.02)   0.02 (0.04) (0.02) (0.07)   0.01
----------------------------------------------------------------------------
Earnings per share
 attributable to
 equity holders of
 Agrium:
----------------------------------------------------------------------------
 Basic                0.02   0.66   0.52    5.02  0.94   2.34   0.80    5.44
----------------------------------------------------------------------------
 Diluted              0.02   0.66   0.52    5.02  0.94   2.34   0.80    5.44
----------------------------------------------------------------------------
----------------------------------------------------------------------------

The agricultural products business is seasonal in nature. Consequently, comparisons made on a year-over-year basis are more appropriate than quarter-over-quarter comparisons. Crop input sales are primarily concentrated in the spring and fall crop input application seasons, which are in the second quarter and fourth quarter. Crop nutrient inventories are normally accumulated leading up to each application season. Our cash collections generally occur after the application season is complete.

BUSINESS ACQUISITION

We completed the acquisition of certain Canadian and Australian agri-products assets of Viterra on October 1, 2013. During March 2014, we finalized our purchase price allocation without change to the fair values disclosed in our 2013 Annual Report. For further information, refer to note 3 of our Consolidated Financial Statements.

DISCONTINUED OPERATIONS

In December 2013, Agrium commenced with a divestment process for the AAT Direct Solutions and Turf and Ornamental businesses that were not transitioned to our Wholesale business unit. For further information, refer to note 2 of our Consolidated Financial Statements.

NORMAL COURSE ISSUER BID

On May 14, 2013, the Toronto Stock Exchange ("TSX") accepted Agrium's notice of intention to make a normal course issuer bid ("NCIB") whereby Agrium may purchase up to 7,472,587 common shares on the TSX and New York Stock Exchange during the period from May 21, 2013 to May 20, 2014 with a daily purchase limit of 133,301 common shares on the TSX. During the period from May 21, 2013 to December 31, 2013, we purchased approximately 5.8 million shares at an average share price of $86 for total consideration of approximately $498-million under our NCIB. There were no share repurchases during the three months ended March 31, 2014. Shareholders can obtain a copy of the NCIB notice submitted to the TSX without charge upon request.

ADDITIONAL IFRS AND NON-IFRS FINANCIAL MEASURES

Certain financial measures in this MD&A are not prescribed by IFRS. We consider these financial measures discussed herein to provide useful information to both management and investors in measuring our financial performance and financial condition.

In general, an additional IFRS financial measure is a measure relevant to understanding a company's financial performance that is not a minimum measure mandated by IFRS. A non-IFRS financial measure generally either excludes or includes amounts that are not excluded or included in the most directly comparable measure calculated and presented in accordance with IFRS. Refer to the following tables for further discussion of how they are calculated and their usefulness to users including management. Non-IFRS financial measures are not recognized measures under IFRS and our method of calculation may not be directly comparable to that of other companies. These non-IFRS measures should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with IFRS.

The following table outlines our additional IFRS financial measures, their definitions and how management assesses each measure. As the measures set out below are presented in our Consolidated Financial Statements included in this MD&A, they are classified as additional IFRS financial measures where they reflect consolidated Agrium, and are classified as non-IFRS financial measures where they do not reflect consolidated Agrium, including references to EBITDA when presented on an operating segment basis.


----------------------------------------------------------------------------
Additional IFRS
 financial measures Definition           Management's assessment
----------------------------------------------------------------------------
EBIT                Earnings (loss) from EBIT provides a supplemental
                    continuing           measure used by management to: (1)
                    operations before    evaluate the effectiveness of our
                    finance costs and    businesses; (2) evaluate our
                    income taxes.        ability to service debt; and (3)
                                         determine resource allocations. We
                                         believe EBIT is useful to
                                         investors, securities analysts and
                                         management, as the measure allows
                                         for an evaluation of segment
                                         performance exclusive of capital
                                         structure and income taxes, both of
                                         which are not a direct result of
                                         the efficiency of each business and
                                         are generally accounted for and
                                         evaluated on a consolidated basis.
----------------------------------------------------------------------------

The following table outlines our non-IFRS financial measures, their definitions and usefulness, and how management assesses each measure.


----------------------------------------------------------------------------
Non-IFRS financial
measures            Definition           Management's assessment
----------------------------------------------------------------------------
EBITDA              Earnings (loss) from Refer to EBIT. This measure is also
                    continuing           used by investors and securities
                    operations before    analysts as a valuation metric and
                    finance costs,       as an alternative to cash provided
                    income taxes,        by operating activities.
                    depreciation and
                    amortization.
----------------------------------------------------------------------------
Adjusted EBITDA     EBITDA before        Refer to EBIT and EBITDA.
                    finance costs,       Management believes that this
                    income taxes,        metric provides useful comparative
                    depreciation and     information on our profitability by
                    amortization of      adding back finance costs, income
                    joint ventures.      taxes, depreciation and
                                         amortization of joint ventures.
----------------------------------------------------------------------------

RECONCILIATIONS OF ADDITIONAL IFRS AND NON-IFRS FINANCIAL MEASURES


Adjusted EBITDA and EBITDA to EBIT

----------------------------------------------------------------------------
                                                          Three months ended
                                                              March 31, 2014
(millions of U.S. dollars)          Retail  Wholesale    Other  Consolidated
----------------------------------------------------------------------------
Adjusted EBITDA                         17        237      (68)          186
----------------------------------------------------------------------------
Equity accounted
joint ventures:
Finance costs and income taxes           -          4        -             4
----------------------------------------------------------------------------
Depreciation and amortization            -          2        -             2
----------------------------------------------------------------------------
EBITDA                                  17        231      (68)          180
----------------------------------------------------------------------------
Depreciation and amortization           72         53        2           127
----------------------------------------------------------------------------
EBIT                                   (55)       178      (70)           53
----------------------------------------------------------------------------
----------------------------------------------------------------------------


Adjusted EBITDA and EBITDA to
 EBIT

----------------------------------------------------------------------------
                                                          Three months ended
                                                              March 31, 2013
(millions of U.S. dollars)          Retail  Wholesale    Other  Consolidated
----------------------------------------------------------------------------
Adjusted EBITDA                         25        393      (62)          356
----------------------------------------------------------------------------
Equity accounted
joint ventures:
Finance costs and income taxes           -          7        -             7
----------------------------------------------------------------------------
Depreciation and amortization            -          2        -             2
----------------------------------------------------------------------------
EBITDA                                  25        384      (62)          347
----------------------------------------------------------------------------
Depreciation and amortization           53         50        5           108
----------------------------------------------------------------------------
EBIT                                   (28)       334      (67)          239
----------------------------------------------------------------------------
----------------------------------------------------------------------------

CRITICAL ACCOUNTING JUDGMENTS AND ESTIMATES

We prepare our financial statements in accordance with IFRS, which requires us to make assumptions and estimates about future events and apply significant judgments. We base our assumptions, estimates and judgments on our historical experience, current trends and all available information that we believe is relevant at the time we prepare the financial statements. However, future events and their effects cannot be determined with certainty. Accordingly, as confirming events occur, actual results could ultimately differ from our assumptions and estimates. Such differences could be material. For further information on the Company's critical accounting judgments and estimates, refer to the section "Critical Accounting Judgments and Estimates" of our 2013 annual Management's Discussion and Analysis, which is contained in our 2013 Annual Report. Since the date of our 2013 annual Management's Discussion and Analysis, there have not been any significant changes to our critical accounting judgments and estimates.

CHANGES IN ACCOUNTING POLICIES

The accounting policies applied in our Consolidated Financial Statements are the same as those applied in our audited annual financial statements in our 2013 Annual Report, with the exception of the adoption of IFRS 9 Financial Instruments and other accounting changes described in note 10 of our Consolidated Financial Statements.

For information regarding changes in accounting policies, refer to the section "Accounting Standards and Policy Changes Not Yet Implemented" of our 2013 annual Management's Discussion and Analysis, which is contained in our 2013 Annual Report.

BUSINESS RISKS

The information presented on Enterprise Risk Management and Key Business Risks on pages 74 - 77 in our 2013 Annual Report and under the heading "Risk Factors" on pages 29 - 40 in our 2013 Annual Information Form has not changed materially since December 31, 2013.

CONTROLS AND PROCEDURES

There have been no changes in our internal control over financial reporting during the quarter ended March 31, 2014 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

PUBLIC SECURITIES FILINGS

Additional information about our company, including our 2013 Annual Information Form is filed with the Canadian securities regulatory authorities through SEDAR at www.sedar.com and with the U.S. securities regulatory authorities through EDGAR at www.sec.gov.

OUTLOOK, KEY RISKS AND UNCERTAINTIES

Major crop prices have strengthened from levels at the beginning of 2014, driven by strong demand and increased uncertainty over supply. The improvement in crop prices has led to a rebound in grower sentiment and has been supportive of crop input demand. Combined North American acreage of corn, soybean, cotton and canola is expected to be close to record highs in 2014, which is expected to be supportive of seed demand and for other crop inputs and agronomic services. Crop protection product demand, and associated service component, is expected to continue to be supported by growers' efforts to combat glyphosate resistant weeds with alternative chemistries. Glyphosate prices have been relatively steady so far in 2014 and are generally expected to remain firm.

The start of the spring planting season in North America is behind normal pace as a result of the coldest winter in 30 years throughout many areas of North America and prolonged cold and wet weather in early spring. The large North American crop in 2013, particularly in Canada, combined with the cold winter, have challenged rail and port transportation logistics so far in 2014. In some cases, the delayed start has allowed the crop nutrient supply chain more time for product to move to market. However, constrained logistical capacity is still expected to contribute to tight supply and demand balances within regional markets this season.

Following a strong start to 2014, global urea prices have declined since early February, driven by a seasonal slow-down in import demand and larger than usual supplies available from China. In North America, urea prices have declined from peak levels, but remain at a premium relative to import parity due to a tight supply and demand balance. U.S. offshore urea imports began the 2013/14 fertilizer year at a slow pace, but picked up as the spring season approached. Chinese urea exports will be a key driver of the nitrogen market in 2014. China exported the same volume of urea in the first two months of 2014 as it did in the first half of 2013. Another uncertainty in the nitrogen global market is the unrest between Russia and Ukraine, which could impact urea export availability from this region.

Pent up demand has provided support to global and North American potash markets so far in 2014. Data from the International Plant Nutrition Institute shows producer shipments in North America were up almost 50 percent in the first quarter of 2014 compared to 2013 levels. However, tight Canadian rail capacity, has constrained both domestic North American and export shipments. This has led to some regional tightness within North America and firm pricing. Globally, spot market prices have increased from early 2014 levels, driven by tighter potash export supply availability. Brazilian demand has been an important driver as Brazilian potash imports have begun 2014 at a similar pace to record 2013 levels. Furthermore, both China and India have signed supply agreements for 2014 which has provided the global marketplace with increased visibility.

Similar to the urea market, export phosphate prices have declined following a strong rally to begin 2014. Phosphate prices were supported by the combination of pent up demand and supply disruptions. Shipments of phosphate from Morocco were restricted in the first quarter of 2014 by adverse weather. Analysts expect Indian import demand to increase by approximately one million tonnes in 2014/15 as domestic Indian inventories of DAP are significantly below last year's levels. Global phosphate prices and the value of the Indian rupee will be important drivers of Indian DAP imports in the coming months. For most phosphate producers, sulfur and ammonia costs have increased to levels similar to where they were at this time a year ago which may lend some support to phosphate prices.

Forward-Looking Statements

Certain statements and other information included in this MD&A constitute "forward-looking information" within the meaning of applicable Canadian securities legislation or constitute "forward-looking statements" within the meaning of applicable U.S. securities legislation (collectively, the "forward-looking statements"). All statements in this MD&A other than those relating to historical information or current conditions, are forward-looking statements, including, but not limited to, statements as to management's expectations with respect to: future crop and crop input volumes, demand, margins, prices and sales; business and financial prospects; dividends and other plans, strategies, objectives and expectations, including with respect to future operations of Agrium and proposed acquisitions and divestitures and the growth and stability of our earnings. These forward-looking statements are subject to a number of risks and uncertainties, many of which are beyond our control, which could cause actual results to differ materially from such forward-looking statements.

All of the forward-looking statements are qualified by the assumptions that are stated or inherent in such forward-looking statements, including the assumptions referred to below in this MD&A. Although Agrium believes that these assumptions are reasonable, this list is not exhaustive of the factors that may affect any of the forward-looking statements and the reader should not place an undue reliance on these assumptions and such forward-looking statements. The key assumptions that have been made in connection with the forward-looking statements include Agrium's ability to successfully integrate and realize the anticipated benefits of its already completed and future acquisitions.

Events or circumstances that could cause actual results to differ materially from those in the forward-looking statements include, but are not limited to: general economic, market and business conditions, weather conditions including impacts from regional flooding and/or drought conditions; crop prices; the supply and demand and price levels for our major products; governmental and regulatory requirements and actions by governmental authorities, including changes in government policy, government ownership requirements, changes in environmental, tax and other laws or regulations and the interpretation thereof, and political risks, including civil unrest, actions by armed groups or conflict, as well as counterparty and sovereign risk; and other risk factors detailed from time to time in Agrium reports filed with the Canadian securities regulators and the Securities and Exchange Commission in the United States. There is a risk that the Egyptian Misr Fertilizer Production Company nitrogen facility in Egypt may not be allowed to proceed with the completion of the two new facilities. Additionally, there are risks associated with Agrium's acquisition of AWB, including litigation risk resulting from AWB having been named in litigation commenced by the Iraqi Government relating to the United Nations Oil-For-Food Programme. There are risks associated with our acquisition of certain Retail Agri-products assets of Viterra, including: timing and costs of the associated integration of the retained Viterra Retail Agri-products assets; the size and timing of expected synergies could be less favorable than anticipated; and other risk factors detailed from time to time in Agrium reports filed with the Canadian securities regulators and the Securities and Exchange Commission in the United States. Furthermore, the potential divestiture of the Turf and Ornamental and Direct Solutions businesses and any potential financial gains or losses resulting from the completion of the strategic review process may differ materially from those in the forward-looking statements.

The purpose of our guidance for the second quarter of 2014 included herein is to assist readers in understanding our expected and targeted financial results and this information may not be appropriate for other purposes.

Agrium disclaims any intention or obligation to update or revise any forward-looking statements in this MD&A as a result of new information or future events, except as may be required under applicable U.S. federal securities laws or applicable Canadian securities legislation.

OTHER

Agrium Inc. is a major Retail supplier of agricultural products and services in North America, South America and Australia and a leading global Wholesale producer and marketer of all three major agricultural nutrients and the premier supplier of specialty fertilizers in North America. Agrium's strategy is to provide the crop inputs and services needed to feed a growing world. We focus on maximizing shareholder returns by driving continuous improvements to our base businesses, pursuing value-added growth opportunities across the crop input value chain and returning capital to shareholders.

A WEBSITE SIMULCAST of the 2014 1st Quarter Conference Call will be available in a listen-only mode beginning Wednesday, May 7th, 2014 at 7:30 a.m. MST (9:30 a.m. EST). Please visit the following website: www.agrium.com.


                                AGRIUM INC.
                   Consolidated Statements of Operations
           (Millions of U.S. dollars, except per share amounts)
                                (Unaudited)

                                                   Three months ended
                                                        March 31,
-------------------------------------------------------------------------
                                                       2014       2013(1)
-------------------------------------------------------------------------

-------------------------------------------------------------------------
Sales                                                 3,079         3,156
-------------------------------------------------------------------------
Cost of product sold                                  2,523         2,451
-------------------------------------------------------------------------
Gross profit                                            556           705
-------------------------------------------------------------------------
Expenses
-------------------------------------------------------------------------
 Selling                                                444           396
-------------------------------------------------------------------------
 General and administrative                             100            94
-------------------------------------------------------------------------
 Earnings from associates and joint ventures             (1)          (13)
-------------------------------------------------------------------------
 Other income (note 4)                                  (40)          (11)
-------------------------------------------------------------------------
Earnings before finance costs and income taxes           53           239
-------------------------------------------------------------------------
 Finance costs related to long-term debt                 19            22
-------------------------------------------------------------------------
 Other finance costs                                     17            18
-------------------------------------------------------------------------
Earnings before income taxes                             17           199
-------------------------------------------------------------------------
 Income taxes                                             5            53
-------------------------------------------------------------------------
Net earnings from continuing operations                  12           146
-------------------------------------------------------------------------
Net loss from discontinued operations (note 2)           (9)           (5)
-------------------------------------------------------------------------
Net earnings                                              3           141
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Attributable to:
-------------------------------------------------------------------------
 Equity holders of Agrium                                 2           141
-------------------------------------------------------------------------
 Non-controlling interest                                 1             -
-------------------------------------------------------------------------
Net earnings                                              3           141
-------------------------------------------------------------------------
-------------------------------------------------------------------------

Earnings per share attributable to equity
 holders of Agrium (note 5)
-------------------------------------------------------------------------
 Basic and diluted earnings per share from
  continuing operations                                0.08          0.98
-------------------------------------------------------------------------
 Basic and diluted loss per share from
  discontinued operations                             (0.06)        (0.04)
-------------------------------------------------------------------------
 Basic and diluted earnings per share                  0.02          0.94
-------------------------------------------------------------------------
-------------------------------------------------------------------------
(1) Certain amounts have been reclassified as a result of discontinued
 operations. See note 2, Discontinued Operations, Assets and Liabilities
Held for Sale.

See accompanying notes.

                                AGRIUM INC.
              Consolidated Statements of Comprehensive Income
                        (Millions of U.S. dollars)
                                (Unaudited)

                                                      Three months ended
                                                           March 31,
-------------------------------------------------------------------------
                                                          2014       2013
-------------------------------------------------------------------------

----------------------------------------------------------------
Net earnings                                                 3        141
-------------------------------------------------------------------------
 Other comprehensive loss
-------------------------------------------------------------------------
  Items that are or may be reclassified to earnings
-------------------------------------------------------------------------
   Share of comprehensive income of associates and
    joint ventures                                           1          1
-------------------------------------------------------------------------
   Foreign currency translation differences
-------------------------------------------------------------------------
    Losses                                                (106)       (24)
-------------------------------------------------------------------------
 Other comprehensive loss                                 (105)       (23)
-------------------------------------------------------------------------
Comprehensive (loss) income                               (102)       118
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Attributable to:
-------------------------------------------------------------------------
 Equity holders of Agrium                                 (103)       118
-------------------------------------------------------------------------
 Non-controlling interest                                    1          -
                                                     --------------------
Comprehensive (loss) income                               (102)       118
-------------------------------------------------------------------------
-------------------------------------------------------------------------
See accompanying notes.

                                AGRIUM INC.
                   Consolidated Statements of Cash Flows
                        (Millions of U.S. dollars)
                                (Unaudited)

                                                   Three months ended
                                                        March 31,
-------------------------------------------------------------------------
                                                       2014       2013(1)
-------------------------------------------------------------------------

-------------------------------------------------------------------------
Operating
-------------------------------------------------------------------------
 Net earnings from continuing operations                 12           146
-------------------------------------------------------------------------
 Adjustments for
-------------------------------------------------------------------------
  Depreciation and amortization                         127           108
-------------------------------------------------------------------------
  Earnings from associates and joint ventures            (1)          (13)
-------------------------------------------------------------------------
  Share-based payments                                   31            16
-------------------------------------------------------------------------
  Unrealized gain on derivative financial
   instruments                                          (14)           (7)
-------------------------------------------------------------------------
  Unrealized foreign exchange (gain) loss                (2)           16
-------------------------------------------------------------------------
  Interest income                                       (11)          (15)
-------------------------------------------------------------------------
  Finance costs                                          36            40
-------------------------------------------------------------------------
  Income taxes                                            5            53
-------------------------------------------------------------------------
  Other                                                  12             5
-------------------------------------------------------------------------
 Interest received                                       12            15
-------------------------------------------------------------------------
 Interest paid                                          (32)          (56)
-------------------------------------------------------------------------
 Income taxes paid                                      (36)         (255)
-------------------------------------------------------------------------
 Dividends from associates and joint ventures             1             1
-------------------------------------------------------------------------
 Net changes in non-cash working capital                648           306
-------------------------------------------------------------------------
Cash provided by operating activities                   788           360
-------------------------------------------------------------------------
Investing
-------------------------------------------------------------------------
 Acquisitions, net of cash acquired                     (16)          (34)
-------------------------------------------------------------------------
 Capital expenditures                                  (459)         (337)
-------------------------------------------------------------------------
 Capitalized borrowing costs                            (23)           (9)
-------------------------------------------------------------------------
 Purchase of investments                                (26)           (8)
-------------------------------------------------------------------------
 Proceeds from disposal of investments                   12             -
-------------------------------------------------------------------------
 Other                                                  (22)          (10)
-------------------------------------------------------------------------
 Net changes in non-cash working capital                 24            14
-------------------------------------------------------------------------
Cash used in investing activities                      (510)         (384)
-------------------------------------------------------------------------
Financing
-------------------------------------------------------------------------
 Short-term debt                                       (349)           65
-------------------------------------------------------------------------
 Long-term debt issued                                    -            10
-------------------------------------------------------------------------
 Repayment of long-term debt                            (10)          (41)
-------------------------------------------------------------------------
 Dividends paid                                        (108)          (75)
-------------------------------------------------------------------------
 Shares issued                                            -             2
-------------------------------------------------------------------------
Cash used in financing activities                      (467)          (39)
-------------------------------------------------------------------------
Effect of exchange rate changes on cash and
 cash equivalents                                        (3)           (7)
-------------------------------------------------------------------------
Decrease in cash and cash equivalents from
 continuing operations                                 (192)          (70)
-------------------------------------------------------------------------
Cash and cash equivalents used in discontinued
 operations (note 2)                                    (17)           (3)
-------------------------------------------------------------------------
Cash and cash equivalents - beginning of period         801           658
-------------------------------------------------------------------------
Cash and cash equivalents - end of period               592           585
-------------------------------------------------------------------------
-------------------------------------------------------------------------
(1) Certain amounts have been reclassified as a result of discontinued
 operations. See note 2, Discontinued Operations, Assets and Liabilities
 Held for Sale.

See accompanying notes.

                                AGRIUM INC.
                        Consolidated Balance Sheets
                         (Millions of U.S. dollars)
                                (Unaudited)

                                                                  December
                                             March 31,                 31,
-------------------------------------------------------------- ------------
                                            2014         2013         2013
-------------------------------------------------------------- -----------
Assets
-------------------------------------------------------------- -----------
 Current assets
-------------------------------------------------------------- -----------
  Cash and cash equivalents                  592          585          801
-------------------------------------------------------------- -----------
  Accounts receivable                      2,143        2,395        2,105
-------------------------------------------------------------- -----------
  Income taxes receivable                    106          103           78
-------------------------------------------------------------- -----------
  Inventories                              4,789        4,604        3,413
-------------------------------------------------------------- -----------
  Advance on acquisition of Viterra
   Inc. (note 3)                               -        1,774            -
-------------------------------------------------------------- -----------
  Prepaid expenses and deposits              379          544          805
-------------------------------------------------------------- -----------
  Other current assets                       124            -          104
-------------------------------------------------------------- -----------
  Assets held for sale (note 2)              230            -          202
-------------------------------------------------------------- -----------
                                           8,363       10,005        7,508
-------------------------------------------------------------- -----------
 Property, plant and equipment (note
  8)                                       5,193        3,705        4,960
-------------------------------------------------------------- -----------
 Intangibles                                 724          616          738
-------------------------------------------------------------- -----------
 Goodwill                                  1,970        2,356        1,958
-------------------------------------------------------------- -----------
 Investments in associates and joint
  ventures                                   639          645          639
-------------------------------------------------------------- -----------
 Other assets                                114          113           99
-------------------------------------------------------------- -----------
 Deferred income tax assets                   78           89           75
-------------------------------------------------------------- -----------
                                          17,081       17,529       15,977
-------------------------------------------------------------- -----------
-------------------------------------------------------------- -----------
Liabilities and shareholders' equity
-------------------------------------------------------------- -----------
 Current liabilities
-------------------------------------------------------------- -----------
  Short-term debt (note 6)                   397        1,370          764
-------------------------------------------------------------- -----------
  Accounts payable                         5,721        5,259        3,985
-------------------------------------------------------------- -----------
  Income taxes payable                         2            -            2
-------------------------------------------------------------- -----------
  Current portion of long-term debt           54          478           58
-------------------------------------------------------------- -----------
  Current portion of other provisions        115          103          112
-------------------------------------------------------------- -----------
  Liabilities held for sale (note 2)          59            -           44
-------------------------------------------------------------- -----------
                                           6,348        7,210        4,965
-------------------------------------------------------------- -----------
 Long-term debt                            3,058        2,078        3,066
-------------------------------------------------------------- -----------
 Post-employment benefits                    131          185          135
-------------------------------------------------------------- -----------
 Other provisions                            410          422          426
-------------------------------------------------------------- -----------
 Other liabilities                            35           78           59
-------------------------------------------------------------- -----------
 Deferred income tax liabilities             514          594          530
-------------------------------------------------------------- -----------
                                          10,496       10,567        9,181
-------------------------------------------------------------- -----------
 Shareholders' equity
-------------------------------------------------------------- -----------
  Share capital                            1,820        1,892        1,820
-------------------------------------------------------------- -----------
  Retained earnings                        5,139        5,019        5,253
-------------------------------------------------------------- -----------
  Accumulated other comprehensive
   (loss) income                            (376)          48         (279)
-------------------------------------------------------------- -----------
  Equity holders of Agrium                 6,583        6,959        6,794
-------------------------------------------------------------- -----------
  Non-controlling interest                     2            3            2
-------------------------------------------------------------- -----------
                                           6,585        6,962        6,796
-------------------------------------------------------------- -----------
                                          17,081       17,529       15,977
-------------------------------------------------------------- -----------
-------------------------------------------------------------- -----------
See accompanying notes.

                                AGRIUM INC.
              Consolidated Statements of Shareholders' Equity
               (Millions of U.S. dollars, except share data)
                                (Unaudited)



                                  Millions
                                        of
                                    common           Share         Retained
                                    shares         capital         earnings
---------------------------------------------------------------------------
December 31, 2012                      149           1,890           4,955
---------------------------------------------------------------------------
 Net earnings                            -               -             141
---------------------------------------------------------------------------
 Other comprehensive
  income (loss), net of
  tax
---------------------------------------------------------------------------
  Other                                  -               -               -
---------------------------------------------------------------------------
 Comprehensive income
  (loss), net of tax                     -               -             141
---------------------------------------------------------------------------
 Dividends                               -               -             (75)
---------------------------------------------------------------------------
 Non-controlling interest
  transactions                           -               -              (2)
---------------------------------------------------------------------------
 Share-based payment
  transactions                           -               2               -
---------------------------------------------------------------------------
March 31, 2013                         149           1,892           5,019
---------------------------------------------------------------------------
---------------------------------------------------------------------------

---------------------------------------------------------------------------
December 31, 2013                      144           1,820           5,253
---------------------------------------------------------------------------
 Net earnings                            -               -               2
---------------------------------------------------------------------------
 Other comprehensive
  income (loss), net of
  tax
---------------------------------------------------------------------------
  Other                                  -               -               -
---------------------------------------------------------------------------
 Comprehensive income
  (loss), net of tax                     -               -               2
---------------------------------------------------------------------------
 Dividends                               -               -            (108)
---------------------------------------------------------------------------
 Non-controlling interest
  transactions                           -               -               -
---------------------------------------------------------------------------
 Impact of adopting IFRS 9
  at January 1, 2014                     -               -              (8)
---------------------------------------------------------------------------
March 31, 2014                         144           1,820           5,139
---------------------------------------------------------------------------
---------------------------------------------------------------------------
See accompanying notes.

                                AGRIUM INC.
              Consolidated Statements of Shareholders' Equity
               (Millions of U.S. dollars, except share data)
                                (Unaudited)

                                      Other comprehensive income
                          -------------------------------------------------
                                                    Comprehensive
                             Available                    loss of
                                   for                 associates
                                  sale     Foreign            and
                             financial    currency          joint
                           instruments translation       ventures     Total
---------------------------------------------------------------------------
December 31, 2012                  -          74             (3)        71
---------------------------------------------------------------------------
 Net earnings                      -           -              -          -
---------------------------------------------------------------------------
 Other comprehensive
  income (loss), net of
  tax
---------------------------------------------------------------------------
  Other                            -         (24)             1        (23)
---------------------------------------------------------------------------
 Comprehensive income
  (loss), net of tax               -         (24)             1        (23)
---------------------------------------------------------------------------
 Dividends                         -           -              -          -
---------------------------------------------------------------------------
 Non-controlling interest
  transactions                     -           -              -          -
---------------------------------------------------------------------------
 Share-based payment
  transactions                     -           -              -          -
---------------------------------------------------------------------------
March 31, 2013                     -          50             (2)        48
---------------------------------------------------------------------------
---------------------------------------------------------------------------

---------------------------------------------------------------------------
December 31, 2013                 (8)       (264)            (7)      (279)
---------------------------------------------------------------------------
 Net earnings                      -           -              -          -
---------------------------------------------------------------------------
 Other comprehensive
  income (loss), net of
  tax
---------------------------------------------------------------------------
  Other                            -        (106)             1       (105)
---------------------------------------------------------------------------
 Comprehensive income
  (loss), net of tax               -        (106)             1       (105)
---------------------------------------------------------------------------
 Dividends                         -           -              -          -
---------------------------------------------------------------------------
 Non-controlling interest
  transactions                     -           -              -          -
---------------------------------------------------------------------------
 Impact of adopting IFRS 9
  at January 1, 2014               8           -              -          8
---------------------------------------------------------------------------
March 31, 2014                     -        (370)            (6)      (376)
---------------------------------------------------------------------------
---------------------------------------------------------------------------
See accompanying notes.

                                AGRIUM INC.
              Consolidated Statements of Shareholders' Equity
               (Millions of U.S. dollars, except share data)
                                (Unaudited)




                                     Equity
                                    holders             Non-
                                         of      controlling          Total
                                     Agrium         interest         equity
---------------------------------------------------------------------------
December 31, 2012                   6,916                4           6,920
---------------------------------------------------------------------------
 Net earnings                         141                -             141
---------------------------------------------------------------------------
 Other comprehensive
  income (loss), net of
  tax
---------------------------------------------------------------------------
  Other                               (23)               -             (23)
---------------------------------------------------------------------------
 Comprehensive income
  (loss), net of tax                  118                -             118
---------------------------------------------------------------------------
 Dividends                            (75)               -             (75)
---------------------------------------------------------------------------
 Non-controlling interest
  transactions                         (2)              (1)             (3)
---------------------------------------------------------------------------
 Share-based payment
  transactions                          2                -               2
---------------------------------------------------------------------------
March 31, 2013                      6,959                3           6,962
---------------------------------------------------------------------------
---------------------------------------------------------------------------

---------------------------------------------------------------------------
December 31, 2013                   6,794                2           6,796
---------------------------------------------------------------------------
 Net earnings                           2                1               3
---------------------------------------------------------------------------
 Other comprehensive
  income (loss), net of
  tax
---------------------------------------------------------------------------
  Other                              (105)               -            (105)
---------------------------------------------------------------------------
 Comprehensive income
  (loss), net of tax                 (103)               1            (102)
---------------------------------------------------------------------------
 Dividends                           (108)               -            (108)
---------------------------------------------------------------------------
 Non-controlling interest
  transactions                          -               (1)             (1)
---------------------------------------------------------------------------
 Impact of adopting IFRS 9
  at January 1, 2014                    -                -               -
---------------------------------------------------------------------------
March 31, 2014                      6,583                2           6,585
---------------------------------------------------------------------------
---------------------------------------------------------------------------
See accompanying notes.

AGRIUM INC.
Summarized Notes to the Consolidated Financial Statements
For the three months ended March 31, 2014
(Millions of U.S. dollars, except per share amounts)
(Unaudited)

1. Corporate Information

Corporate information

Agrium Inc. ("Agrium") is incorporated under the laws of Canada with common shares listed under the symbol "AGU" on the New York Stock Exchange (NYSE) and the Toronto Stock Exchange (TSX). Our Corporate head office is located at 13131 Lake Fraser Drive S.E., Calgary, Canada. We conduct our operations globally from our Wholesale head office in Calgary and our Retail head office in Loveland, Colorado, United States. In these financial statements, "we", "us", "our" and "Agrium" mean Agrium Inc., its subsidiaries and joint arrangements.

Agrium operates two core strategic business units:


--  Retail: Distributes crop nutrients, crop protection products, seed and
    services directly to growers through a network of farm centers in two
    geographical segments:
    --  North America, including the United States and Canada; and
    --  International, including Australia and South America.
--  Wholesale: Operates in North and South America and Europe, and produces,
    markets and distributes crop nutrients and industrial products through
    the following businesses:
    --  Nitrogen: Manufacturing in Alberta, Texas and Argentina, and
        production of ESNr, (Environmentally Smart Nitrogen) polymer-coated
        nitrogen crop nutrients;
    --  Potash: Mining and processing in Saskatchewan;
    --  Phosphate: Owning and operating mines and production facilities in
        Alberta and Idaho;
    --  Product purchased for resale: Marketing nutrient products from other
        suppliers in North and South America and Europe; and
    --  Ammonium sulfate and other: Producing blended crop nutrients and
        micronutrients.

Additional information on our operating segments is included in note 9.

Basis of preparation and statement of compliance

These consolidated interim financial statements ("interim financial statements") were approved for issuance by the Audit Committee on May 6, 2014. We prepared these interim financial statements in accordance with International Accounting Standard 34 Interim Financial Reporting. These statements do not include all information and disclosures normally provided in annual financial statements and should be read in conjunction with our audited annual financial statements and related notes contained in our 2013 Annual Report, available at www.agrium.com.

The accounting policies applied in these interim financial statements are the same as those applied in our audited annual financial statements in our 2013 Annual Report, with the exception of the adoption of IFRS 9 Financial Instruments and other accounting changes described in note 10.

Seasonality in our business results from increased demand for our products during planting seasons. Sales are generally higher in spring and fall.

2. Discontinued Operations, Assets and Liabilities Held for Sale


                                                    Three months ended
Condensed information of discontinued operations         March 31,
--------------------------------------------------------------------------
                                                        2014          2013
--------------------------------------------------------------------------
Operating information
--------------------------------------------------------------------------
Discontinued operations of assets held for sale
--------------------------------------------------------------------------
 Sales                                                    60            68
--------------------------------------------------------------------------
 Expenses                                                 71            75
--------------------------------------------------------------------------
 Loss before income taxes                                (11)           (7)
--------------------------------------------------------------------------
 Income tax recovery                                      (2)           (2)
--------------------------------------------------------------------------
Net loss from discontinued operations                     (9)           (5)
--------------------------------------------------------------------------
--------------------------------------------------------------------------
Cash used in operating activities                        (17)           (3)
--------------------------------------------------------------------------
--------------------------------------------------------------------------

Balance sheet information                          March 31,
------------------------------------------------------------
                                                        2014
------------------------------------------------------------
Accounts receivable                                       81
------------------------------------------------------------
Inventories                                               94
------------------------------------------------------------
Property, plant and equipment                             26
------------------------------------------------------------
Intangibles                                               27
------------------------------------------------------------
Deferred income tax assets                                 2
------------------------------------------------------------
Assets held for sale                                     230
------------------------------------------------------------
------------------------------------------------------------
Accounts payable                                          58
------------------------------------------------------------
Income taxes payable                                       1
------------------------------------------------------------
Liabilities held for sale                                 59
------------------------------------------------------------
------------------------------------------------------------

3. Business Acquisition

Viterra Inc.

We completed the acquisition of 100 percent of certain Canadian and Australian agri-products assets of Viterra Inc. on October 1, 2013. We engaged independent valuation experts to assist us in determining the fair value of the assets acquired and liabilities assumed. During March 2014, we finalized our purchase price allocation without change to the fair values disclosed in our 2013 Annual Report.

4. Other Expenses


                                                    Three months ended
Other expenses                                           March 31,
--------------------------------------------------------------------------
                                                        2014          2013
--------------------------------------------------------------------------
Realized gain on derivative financial
 instruments                                             (33)          (14)
--------------------------------------------------------------------------
Unrealized gain on derivative financial
 instruments                                             (14)           (7)
--------------------------------------------------------------------------
Foreign exchange loss                                     12            19
--------------------------------------------------------------------------
Interest income                                          (11)          (15)
--------------------------------------------------------------------------
Environmental remediation and asset retirement
 obligations                                              (2)            1
--------------------------------------------------------------------------
Bad debt expense                                           5             5
--------------------------------------------------------------------------
Potash profit and capital tax                              3             4
--------------------------------------------------------------------------
Other                                                      -            (4)
--------------------------------------------------------------------------
                                                         (40)          (11)
--------------------------------------------------------------------------
--------------------------------------------------------------------------

5. Earnings per Share


                                                    Three months ended
Attributable to equity holders of Agrium                 March 31,
--------------------------------------------------------------------------
                                                        2014          2013
--------------------------------------------------------------------------
Numerator
--------------------------------------------------------------------------
 Net earnings from continuing operations                  11           146
--------------------------------------------------------------------------
 Net loss from discontinued operations                    (9)           (5)
--------------------------------------------------------------------------
 Net earnings                                              2           141
--------------------------------------------------------------------------
--------------------------------------------------------------------------
Denominator (millions)
--------------------------------------------------------------------------
 Weighted average number of shares outstanding
  for basic and diluted earnings per share               144           149
--------------------------------------------------------------------------
--------------------------------------------------------------------------

6. Debt


                                                     March 31, December 31,
-------------------------------------------------------------- ------------
                                                          2014         2013
-------------------------------------------------------------- ------------
                                      Maturity    Rate
-------------------------------------------------------------- ------------
Short-term debt
-------------------------------------------------------------- ------------
  Commercial paper                        2014    0.29     150          503
-------------------------------------------------------------- ------------
  Credit facilities                               2.02     247          261
-------------------------------------------------------------- ------------
                                                           397          764
-------------------------------------------------------------- ------------
-------------------------------------------------------------- ------------

In April 2014, we filed a Base Shelf Prospectus permitting the issuance of up to $2.5-billion of common shares, debt and other securities until May 2016. Issuance of securities requires us to file a prospectus supplement and is subject to availability of funding in capital markets.

7. Financial Instruments


Natural gas derivatives outstanding                March 31,
--------------------------------------------------------------------------
                                                     2014
--------------------------------------------------------------------------
                                                                Fair value
                                                                 of assets
                                        Notional  Maturities (liabilities)
---------------------------------------------------------------------------
  AECO Swaps (BCF)                          60   2014-2018              15
---------------------------------------------------------------------------
                                                                        15
---------------------------------------------------------------------------
---------------------------------------------------------------------------

                                         Gross                    Carrying
Balance sheet presentation              amount     Netting          amount
---------------------------------------------------------------------------
 Accounts receivable                        36         (33)              3
---------------------------------------------------------------------------
 Other assets                              189        (177)             12
---------------------------------------------------------------------------
 Accounts payable                          (33)         33               -
---------------------------------------------------------------------------
 Other liabilities                        (177)        177               -
---------------------------------------------------------------------------
                                            15           -              15
---------------------------------------------------------------------------
---------------------------------------------------------------------------

Natural gas derivatives outstanding               December 31,
---------------------------------------------------------------------------
                                                      2013
---------------------------------------------------------------------------
                                                                 Fair value
                                                                  of assets
                                         Notional  Maturities (liabilities)
---------------------------------------------------------------------------
  AECO Swaps (BCF)                            8        2014               -
---------------------------------------------------------------------------
                                                                          -
---------------------------------------------------------------------------
---------------------------------------------------------------------------

                                          Gross                    Carrying
Balance sheet presentation               amount     Netting          amount
---------------------------------------------------------------------------
 Accounts receivable                         26         (26)              -
---------------------------------------------------------------------------
 Other assets                                 -           -               -
---------------------------------------------------------------------------
 Accounts payable                           (26)         26               -
---------------------------------------------------------------------------
 Other liabilities                            -           -               -
---------------------------------------------------------------------------
                                              -           -               -
---------------------------------------------------------------------------
---------------------------------------------------------------------------

                                                         March 31,
                                                ---------------------------
                                                            2014
                                                ---------------------------
Classification of financial instruments                            Carrying
measured at fair value                              Fair value        value
                                                ------------------
                                                  Level 1  Level 2
---------------------------------------------------------------------------
Accounts receivable - derivatives                       6        -        6
---------------------------------------------------------------------------
Other current financial assets - marketable
 securities                                            21       86      107
---------------------------------------------------------------------------
Other financial assets - derivatives                   12        -       12
---------------------------------------------------------------------------
Accounts payable - derivatives                          5        -        5
---------------------------------------------------------------------------
Classification of fair value of long-term debt
---------------------------------------------------------------------------
  Debentures                                            -    3,269    2,990
---------------------------------------------------------------------------
---------------------------------------------------------------------------

                                                        December 31,
                                                ---------------------------
                                                            2013
                                                ---------------------------
Classification of financial instruments                            Carrying
measured at fair value                              Fair value        value
                                                ------------------
                                                  Level 1  Level 2
---------------------------------------------------------------------------
Cash and cash equivalents                               -      801      801
---------------------------------------------------------------------------
Accounts receivable - derivatives                       1        -        1
---------------------------------------------------------------------------
Other current financial assets
---------------------------------------------------------------------------
  Available for sale - equities                        14        -       14
---------------------------------------------------------------------------
  Available for sale - fixed income                     -       90       90
---------------------------------------------------------------------------
Other financial assets
---------------------------------------------------------------------------
  Available for sale                                   12        -       12
---------------------------------------------------------------------------
Accounts payable - derivatives                          -        2        2
---------------------------------------------------------------------------
---------------------------------------------------------------------------
Classification of fair value of long-term debt
---------------------------------------------------------------------------
  Debentures                                            -    3,124    2,989
---------------------------------------------------------------------------
---------------------------------------------------------------------------

There have been no transfers between Level 1 and Level 2 fair value measurements in the three months ended March 31, 2014 or March 31, 2013. We do not measure any of our financial instruments using Level 3 inputs.

8. Additional Information

Property, plant and equipment

During the three months ended March 31, 2014, we added $290-million to assets under construction at our Vanscoy Potash facility.


Dividends
                                 March 31,
---------------------------------------------------------------------------
                                    2014
                                                          Paid to
               Declared                              Shareholders     Total
-----------------------------------------------
Effective                   Per share     Total
---------------------------------------------------------------------------
December 12, 2013                0.75       108  January 16, 2014       108
---------------------------------------------------------------------------
February 21, 2014                0.75       108    April 17, 2014        NA
---------------------------------------------------------------------------
---------------------------------------------------------------------------

Share capital

During the three months ended March 31, 2014, we granted share-based compensation awards to officers and employees consisting of 418,482 Tandem Stock Appreciation Rights with a grant price of $90.53 and 215,073 Performance Share Units.

Our authorized share capital consists of unlimited common shares without par value and unlimited preferred shares.

9. Operating Segments


                                                    Three months ended
                                                         March 31,
--------------------------------------------------------------------------
Segment operations                                      2014          2013
--------------------------------------------------------------------------
Sales
--------------------------------------------------------------------------
 Retail
--------------------------------------------------------------------------
  North America                                        1,721         1,590
--------------------------------------------------------------------------
  International                                          511           549
--------------------------------------------------------------------------
 Total Retail                                          2,232         2,139
--------------------------------------------------------------------------
 Wholesale
--------------------------------------------------------------------------
  Nitrogen                                               383           434
--------------------------------------------------------------------------
  Potash                                                 128           152
--------------------------------------------------------------------------
  Phosphate                                              167           162
--------------------------------------------------------------------------
  Product purchased for resale                           294           352
--------------------------------------------------------------------------
  Ammonium sulfate and other                              89            92
--------------------------------------------------------------------------
 Total Wholesale                                       1,061         1,192
--------------------------------------------------------------------------
 Other                                                  (214)         (175)
--------------------------------------------------------------------------
                                                       3,079         3,156
--------------------------------------------------------------------------
--------------------------------------------------------------------------
Inter-segment sales
--------------------------------------------------------------------------
 Retail                                                    5             4
--------------------------------------------------------------------------
 Wholesale                                               209           171
--------------------------------------------------------------------------
                                                         214           175
--------------------------------------------------------------------------
--------------------------------------------------------------------------
Earnings before income taxes
--------------------------------------------------------------------------
 Retail
--------------------------------------------------------------------------
  North America                                          (82)          (23)
--------------------------------------------------------------------------
  International                                           27            (5)
--------------------------------------------------------------------------
 Total Retail                                            (55)          (28)
--------------------------------------------------------------------------
 Wholesale
--------------------------------------------------------------------------
  Nitrogen                                               100           186
--------------------------------------------------------------------------
  Potash                                                  46            84
--------------------------------------------------------------------------
  Phosphate                                                2            37
--------------------------------------------------------------------------
  Product purchased for resale                             4             6
--------------------------------------------------------------------------
  Ammonium sulfate and other                              19            30
--------------------------------------------------------------------------
                                                         171           343
--------------------------------------------------------------------------
  Unallocated expenses                                    (7)            9
--------------------------------------------------------------------------
 Total Wholesale                                         178           334
--------------------------------------------------------------------------
 Other                                                   (70)          (67)
--------------------------------------------------------------------------
 Earnings before finance costs and income taxes           53           239
--------------------------------------------------------------------------
 Finance costs related to long-term debt                  19            22
--------------------------------------------------------------------------
 Other finance costs                                      17            18
--------------------------------------------------------------------------
Earnings before income taxes                              17           199
--------------------------------------------------------------------------
--------------------------------------------------------------------------


                                                     Three months ended
                                                          March 31,
---------------------------------------------------------------------------
                                                          2014         2013
---------------------------------------------------------------------------
Retail sales
---------------------------------------------------------------------------
 Crop nutrients                                            896          802
---------------------------------------------------------------------------
 Crop protection products                                  730          786
---------------------------------------------------------------------------
 Seed                                                      298          285
---------------------------------------------------------------------------
 Merchandise                                               186          120
---------------------------------------------------------------------------
 Services and other                                        122          146
---------------------------------------------------------------------------
                                                         2,232        2,139
---------------------------------------------------------------------------
---------------------------------------------------------------------------

During the three months ended March 31, 2014, reports reviewed on a regular basis by our senior leadership team ceased to include the separate results of ESN and Micronutrients, which we have reported in the preceding tables with the results of our Nitrogen and Ammonium Sulfate and Other segments. We have revised comparative figures to reflect the new classification.

10. Significant Accounting Policies

Except as described below, the accounting policies applied in these interim financial statements are the same as those applied by Agrium in our 2013 Annual Report.


                       Description         Agrium's date and   Impact
New or   Standard/                         method of adoption
amended  interpretati
         on
---------------------------------------------------------------------------
New      IFRS 9        Financial           Adopted all of the  As described
                       Instruments (as     requirements of     below
                       amended in          IFRS 9 on January
                       November 2013)      1, 2014,
                       replaces previous   retrospectively
                       guidance on the     without
                       classification and  restatement of
                       measurement of      prior periods
                       non-derivative
                       financial assets.
                       IFRS 9 also adds
                       guidance replacing
                       previous hedge
                       accounting
                       requirements to
                       more closely align
                       the accounting
                       with risk
                       management
                       activities.
---------------------------------------------------------------------------
Amended  IAS 32        Offsetting          Adopted January 1,  No material
                       Financial Assets    2014,               impact
                       and Liabilities     retrospectively
                       clarifies
                       requirements for
                       the rights of set-
                       off and provisions
                       on net settlement.
---------------------------------------------------------------------------
New      IFRIC 21      Levies establishes  Adopted January 1,  No material
                       guidance on         2014,               impact
                       accounting for      retrospectively
                       levies imposed by
                       governments.
---------------------------------------------------------------------------
---------------------------------------------------------------------------

Impact of Adoption of IFRS 9 (2013)

On adoption of IFRS 9, in accordance with its transitional provisions, we have not restated prior periods but have classified the financial assets that we held at January 1, 2014 retrospectively based on the new classification requirements and the characteristics of each financial instrument at the transition date. Adoption of IFRS 9 resulted in balance sheet reclassifications without impact to earnings.

Accounting policy changes adopted under IFRS 9 Financial Instruments

We recognize a financial asset or a financial liability when we become a party to the contractual provisions of the instrument. We classify and measure financial assets on initial recognition as described below.


Classification of financial instruments
---------------------------------------------------------------------------
Characteristics of financial assets                  Category on initial
                                                     recognition
---------------------------------------------------------------------------
If the objective of our business model for a debt    Amortized cost
 investment is to:
  - Hold the asset to collect the contractual cash
   flows; and
  - The contractual terms give rise on specified
   dates to cash flows that are solely payments of
   principal and interest.
---------------------------------------------------------------------------
All financial instruments not at amortized cost      Fair value
---------------------------------------------------------------------------
---------------------------------------------------------------------------

Recognition and measurement of financial instruments
---------------------------------------------------------------------------
                 Fair value through  Fair value through  Financial assets
                 profit or loss      other               and liabilities at
                 ("FVTPL")           comprehensive       amortized cost
                                     income ("FVTOCI")   ("AC")
---------------------------------------------------------------------------
Instrument type  Debt, equity or     Equity              Debt
                 derivative
---------------------------------------------------------------------------
Measurement      Fair value          Fair value          Amortized cost
---------------------------------------------------------------------------
Fair value       Profit or loss      Other               -
 gains (losses)                      comprehensive
                                     income (1)(2)
---------------------------------------------------------------------------
Interest and     Profit or loss      Profit or loss      Profit or loss:
 dividends                                               effective interest
                                                         rate
---------------------------------------------------------------------------
Impairment       Profit or loss      Other               Profit or loss
                 (assets)            comprehensive       (assets)
                                     income (2)
---------------------------------------------------------------------------
Foreign          Profit or loss      Other               Profit or loss
 exchange                            comprehensive
                                     income (2)
---------------------------------------------------------------------------
Transaction      Profit or loss      Included in cost    Included in cost
 costs                               of instrument       of instrument
---------------------------------------------------------------------------
---------------------------------------------------------------------------
(1) For equity investments not held for trading, we may make an irrevocable
    election at initial recognition to recognize changes in fair value
    through other comprehensive income rather than profit or loss. We did
    not make any such elections.
(2) If we elect to present unrealized and realized fair value gains and
    losses on equity investments in other comprehensive income, there is no
    subsequent recycling of fair value gains and losses to profit or loss.
    We would recognize dividends from such investments in profit or loss as
    long as they represent a return on investment.
(3) We may make an election under certain circumstances to irrevocably
    designate a financial asset or financial liability as measured at fair
    value. We did not make any such elections.

For financial liabilities, IFRS 9 retains most of the IAS 39 requirements. Because we do not have any financial liabilities designated at fair value through profit or loss or embedded derivatives, the adoption of IFRS 9 did not impact our accounting policies for financial liabilities or derivative financial instruments. We do not currently carry any derivative investments that we have designated as hedging instruments.

We recognize purchases and sales of financial assets on the trade date, which is the date on which we commit to purchase or sell the asset. We derecognize financial assets when the rights to receive cash flows from the investments have expired or we have transferred them, and we have transferred substantially all risks and rewards of ownership. We recognize derivative contracts with physical delivery that meet certain conditions on the settlement date.


Classification of financial
 instruments

Financial instrument                 Category under IAS  Category under
                                     39                  IFRS 9
---------------------------------------------------------------------------
Financial assets
---------------------------------------------------------------------------
Cash and cash equivalents (1)        FVTPL               AC
---------------------------------------------------------------------------
Accounts receivable - trade (1)      L&R                 AC
---------------------------------------------------------------------------
Accounts receivable - derivatives    FVTPL               FVTPL
---------------------------------------------------------------------------
Advance on acquisition of Viterra    L&R                 -
 Inc. (1)
---------------------------------------------------------------------------
Other financial assets - marketable  AFS                 FVTPL
 securities (2)
---------------------------------------------------------------------------
Other financial assets -             L&R                 AC
 receivables
---------------------------------------------------------------------------
Other financial assets -             AFS                 AC
 investments (3)
---------------------------------------------------------------------------
Other financial assets -             FVTPL               FVTPL
 derivatives
---------------------------------------------------------------------------
Financial liabilities
---------------------------------------------------------------------------
Short-term debt (1)                  AC                  AC
---------------------------------------------------------------------------
Accounts payable - trade (1)         AC                  AC
---------------------------------------------------------------------------
Accounts payable - derivatives       FVTPL               FVTPL
---------------------------------------------------------------------------
Long-term debt                       AC                  AC
---------------------------------------------------------------------------
Other financial liabilities          AC                  AC
---------------------------------------------------------------------------
Other financial liabilities -        FVTPL               FVTPL
 derivatives
---------------------------------------------------------------------------
---------------------------------------------------------------------------
(1) Carrying value approximates fair value due to the short-term nature of
    the instruments.
(2) We reclassified marketable securities of $104-million classified as
    current assets available for sale at January 1, 2014 to fair value
    through profit or loss ($95-million) and amortized cost ($9-million)
    without any fair value gain or loss on reclassification. We transferred
    net accumulated fair value losses of $8-million on these securities
    classified as available for sale at January 1, 2014 to retained
    earnings.
(3) We reclassified investments of $12-million classified as non-current
    assets available for sale at January 1, 2014 to amortized cost without
    any gain or loss on reclassification.

                                AGRIUM INC.
                         Supplemental Information 1
                          Results by Business Unit
                         (Millions of U.S. dollars)
                                (Unaudited)

                                   Three months ended March 31,
--------------------------------------------------------------------------
                                               2014
--------------------------------------------------------------------------
                               Retail    Wholesale        Other      Total
--------------------------------------------------------------------------
Sales - external              2,227          852            -        3,079
      - inter-segment             5          209         (214)           -
--------------------------------------------------------------------------
Total sales                   2,232        1,061         (214)       3,079
Cost of product sold          1,845          890         (212)       2,523
--------------------------------------------------------------------------
Gross profit                    387          171           (2)         556
--------------------------------------------------------------------------
Gross profit (%)                 17           16                        18
--------------------------------------------------------------------------
--------------------------------------------------------------------------
Selling                         436           11           (3)         444
General and
 administrative                  28           10           62          100
Earnings from associates
 and joint ventures              (1)           -            -           (1)
Other (income) expenses         (21)         (28)           9          (40)
--------------------------------------------------------------------------
EBIT (1)                        (55)         178          (70)          53
EBITDA (2)                       17          231          (68)         180
Adjusted EBITDA (2)              17          237          (68)         186
--------------------------------------------------------------------------
--------------------------------------------------------------------------

                                   Three months ended March 31,
--------------------------------------------------------------------------
                                               2013
--------------------------------------------------------------------------
                                       Wholesale
                             Retail           (3)    Other (4)    Total (4)
--------------------------------------------------------------------------
Sales - external              2,135        1,021            -        3,156
      - inter-segment             4          171         (175)           -
--------------------------------------------------------------------------
Total sales                   2,139        1,192         (175)       3,156
Cost of product sold          1,763          849         (161)       2,451
--------------------------------------------------------------------------
Gross profit                    376          343          (14)         705
--------------------------------------------------------------------------
Gross profit (%)                 18           29                        22
--------------------------------------------------------------------------
--------------------------------------------------------------------------
Selling                         389           11           (4)         396
General and
 administrative                  25           20           49           94
(Earnings) loss from
 associates and joint
 ventures                        (1)         (13)           1          (13)
Other (income) expenses          (9)          (9)           7          (11)
--------------------------------------------------------------------------
EBIT (1)                        (28)         334          (67)         239
EBITDA (2)                       25          384          (62)         347
Adjusted EBITDA (2)              25          393          (62)         356
--------------------------------------------------------------------------
--------------------------------------------------------------------------
(1) Earnings (loss) from continuing operations before finance costs and
income taxes.
(2) Certain measures presented in this table are not recognized measures
under IFRS. Refer to Supplemental Information 6.
(3) Restated for the results of ESN and Micronutrients businesses that have
transitioned to our Wholesale business unit.
(4) Restated for reclassifications resulting from discontinued operations.



                                AGRIUM INC.
                        Supplemental Information 2
                               Product Lines
                        (Millions of U.S. dollars)
                                (Unaudited)

                                            Three months ended March 31,
--------------------------------------------------------------------------
                                                        2014
-------------------------------------------------------------------------
                                                         Cost of
                                                         product    Gross
                                                Sales   sold (1)   profit
-------------------------------------------------------------------------

Retail (2)
 Crop nutrients                                 896        768       128
 Crop protection products                       730        625       105
 Seed                                           298        252        46
 Merchandise                                    186        162        24
 Services and other                             122         38        84
-------------------------------------------------------------------------
                                              2,232      1,845       387
-------------------------------------------------------------------------
Wholesale (3)
 Nitrogen                                       383        283       100
 Potash                                         128         82        46
 Phosphate                                      167        165         2
 Product purchased for resale                   294        290         4
 Ammonium sulfate and other                      89         70        19
-------------------------------------------------------------------------
                                              1,061        890       171
-------------------------------------------------------------------------
Other inter-segment eliminations (4)           (214)      (212)       (2)
-------------------------------------------------------------------------
Total (4)                                     3,079      2,523       556
-------------------------------------------------------------------------
-------------------------------------------------------------------------

Wholesale equity accounted joint venture
 results:
 Nitrogen - international                        27         18         9
 Product purchased for resale                    21         20         1
-------------------------------------------------------------------------
                                                 48         38        10
-------------------------------------------------------------------------
Total Wholesale including equity accounted
 joint ventures (3)                           1,109        928       181
-------------------------------------------------------------------------
-------------------------------------------------------------------------


                                AGRIUM INC.
                        Supplemental Information 2
                               Product Lines
                        (Millions of U.S. dollars)
                                (Unaudited)

                                            Three months ended March 31,
-------------------------------------------------------------------------
                                             2013
-------------------------------------------------------------------------
                                                         Cost of
                                                         product    Gross
                                                Sales   sold (1)   profit
-------------------------------------------------------------------------

Retail (2)
 Crop nutrients                                 802        681        121
 Crop protection products                       786        658        128
 Seed                                           285        241         44
 Merchandise                                    120         98         22
 Services and other                             146         85         61
-------------------------------------------------------------------------
                                              2,139      1,763        376
-------------------------------------------------------------------------
Wholesale (3)
 Nitrogen                                       434        248        186
 Potash                                         152         68         84
 Phosphate                                      162        125         37
 Product purchased for resale                   352        346          6
 Ammonium sulfate and other                      92         62         30
-------------------------------------------------------------------------
                                              1,192        849        343
-------------------------------------------------------------------------
Other inter-segment eliminations (4)           (175)      (161)       (14)
-------------------------------------------------------------------------
Total (4)                                     3,156      2,451        705
-------------------------------------------------------------------------
-------------------------------------------------------------------------

Wholesale equity accounted joint venture
 results:
 Nitrogen - international                        39         24         15
 Product purchased for resale                    31         30          1
-------------------------------------------------------------------------
                                                 70         54         16
-------------------------------------------------------------------------
Total Wholesale including equity accounted
 joint ventures (3)                           1,262        903        359
-------------------------------------------------------------------------
-------------------------------------------------------------------------
(1) Includes depreciation and amortization.
(2) International Retail sales were $511-million (2013 - $549-million) and
gross profit was $104-million (2013 - $97-million) for the three months
ended March 31.
(3) Restated for the results of ESN and Micronutrients businesses that have
transitioned to our Wholesale business unit.
(4) Restated for reclassifications resulting from discontinued operations.

                                AGRIUM INC.
                         Supplemental Information 3
                     Selected Volumes and Sales Prices
                                (Unaudited)

                                       Three months ended March 31,
---------------------------------------------------------------------------
                                                       2014
--------------------------------------------------------------------------
                                                          Cost of
                                          Sales  Selling  product
                                         tonnes    price     sold   Margin
                                        (000's)($/tonne)($/tonne)($/tonne)
--------------------------------------------------------------------------
Retail
 Crop nutrients
  North America                           1,400      502
  International                             426      453
                                       -----------------------------------
Total crop nutrients                      1,826      491      421       70
--------------------------------------------------------------------------
--------------------------------------------------------------------------
Wholesale (1)
 Nitrogen
  North America
   Ammonia                                  179      498
   Urea                                     382      441
   ESN                                       84      569
   Other                                    231      339
--------------------------------------------------------------------------
Total nitrogen                              876      438      324      114
--------------------------------------------------------------------------

 Potash
  North America                             292      342
  International                             136      204
--------------------------------------------------------------------------
Total potash                                428      298      191      107
--------------------------------------------------------------------------

 Phosphate                                  308      544      536        8
 Product purchased for resale               805      365      360        5
 Ammonium sulfate                            92      306      172      134
 Other                                      127
--------------------------------------------------------------------------

Total Wholesale                           2,636      403      338       65
--------------------------------------------------------------------------
--------------------------------------------------------------------------

Wholesale equity accounted joint
 ventures:
 Nitrogen - international                    62      433      282      151
 Product purchased for resale                64      328      320        8
--------------------------------------------------------------------------
                                            126      380      302       78
--------------------------------------------------------------------------
Total Wholesale including joint
 ventures(1)                              2,762      401      336       65
--------------------------------------------------------------------------
--------------------------------------------------------------------------


                                AGRIUM INC.
                        Supplemental Information 3
                     Selected Volumes and Sales Prices
                                (Unaudited)

                                       Three months ended March 31,
--------------------------------------------------------------------------
                                                       2013
--------------------------------------------------------------------------
                                                          Cost of
                                          Sales  Selling  product
                                         tonnes    price     sold   Margin
                                        (000's)($/tonne)($/tonne)($/tonne)
--------------------------------------------------------------------------
Retail
 Crop nutrients
  North America                           1,061      580
  International                             347      539
                                       -----------------------------------
Total crop nutrients                      1,408      570      484       86
--------------------------------------------------------------------------
--------------------------------------------------------------------------
Wholesale (1)
 Nitrogen
  North America
   Ammonia                                  193      606
   Urea                                     322      543
   ESN                                       81      642
   Other                                    231      386
--------------------------------------------------------------------------
Total nitrogen                              827      524      300      224
--------------------------------------------------------------------------

 Potash
  North America                             198      473
  International                             180      327
--------------------------------------------------------------------------
Total potash                                378      404      183      221
--------------------------------------------------------------------------

 Phosphate                                  232      698      537      161
 Product purchased for resale               763      462      454        8
 Ammonium sulfate                            72      434      186      248
 Other                                      106
--------------------------------------------------------------------------

Total Wholesale                           2,378      501      357      144
--------------------------------------------------------------------------
--------------------------------------------------------------------------

Wholesale equity accounted joint
 ventures:
 Nitrogen - international                    78      496      299      197
 Product purchased for resale                79      389      381        8
--------------------------------------------------------------------------
                                            157      442      340      102
--------------------------------------------------------------------------
Total Wholesale including joint
 ventures(1)                              2,535      498      356      142
--------------------------------------------------------------------------
--------------------------------------------------------------------------
(1) Restated for the results of ESN and Micronutrients businesses that have
transitioned to our Wholesale business unit.

                                AGRIUM INC.
                         Supplemental Information 4
                       Depreciation and Amortization
                         (Millions of U.S. dollars)
                                (Unaudited)

                                         Three months ended March 31,
---------------------------------------------------------------------------
                                                     2014
--------------------------------------------------------------------------
                                    Cost of                General
                                    product                    and
                                       sold Selling administrative   Total
--------------------------------------------------------------------------

Retail                                    1      68              3      72
Wholesale (1)
  Nitrogen                               22
  Potash                                 13
  Phosphate                              13
  Ammonium sulfate and other              3
--------------------------------------------------------------------------
                                         51       -              2      53
Other                                     -       -              2       2
--------------------------------------------------------------------------
Total (2)                                52      68              7     127
--------------------------------------------------------------------------
--------------------------------------------------------------------------


                                AGRIUM INC.
                        Supplemental Information 4
                       Depreciation and Amortization
                        (Millions of U.S. dollars)
                                (Unaudited)

                                         Three months ended March 31,
--------------------------------------------------------------------------
                                                     2013
--------------------------------------------------------------------------
                                    Cost of                General
                                    product                    and
                                       sold Selling administrative   Total
--------------------------------------------------------------------------

Retail                                    1      49              3      53
Wholesale (1)
  Nitrogen                               17
  Potash                                 11
  Phosphate                              14
  Ammonium sulfate and other              1
--------------------------------------------------------------------------
                                         43       -              7      50
Other                                     -       -              5       5
--------------------------------------------------------------------------
Total (2)                                44      49             15     108
--------------------------------------------------------------------------
--------------------------------------------------------------------------
(1) Restated for the results of ESN and Micronutrients businesses that have
transitioned to our Wholesale business unit.
(2) Restated for reclassifications resulting from discontinued operations.

                                AGRIUM INC.
                      Supplemental Information 5 (1)
                        Selected Financial Measures
            (Millions of U.S. dollars, unless stated otherwise)
                                (Unaudited)

                                 Rolling four quarters ended March 31,
--------------------------------------------------------------------------
                                      2014                   2013
--------------------------------------------------- ----------------------
                                       Consolidated           Consolidated
                                Retail       Agrium    Retail   Agrium (2)
--------------------------------------------------- ----------------------
Return on operating capital
 employed (%) (3a)                  16           13        15           24
Return on capital employed
 (%) (3b)                            9           10         8           17
Average non-cash working
 capital to sales (%)               19           16        20           16
Operating coverage ratio (%)
 (3c)                               73           60        72           48
EBITDA to sales (%) (3d)             8           12         8           17


                                               March 31,
--------------------------------------------------------------------------
                                      2014                   2013
--------------------------------------------------- ----------------------
                                       Consolidated           Consolidated
                                Retail       Agrium    Retail       Agrium
--------------------------------------------------- ----------------------
Non-cash working capital         1,512        1,579     1,810        2,285


North America measures               Rolling four quarters ended March 31,
--------------------------------------------------------------------------
                                  2014                   2013
--------------------------------------              ---------
                                Retail                 Retail
--------------------------------------              ---------
Return on operating capital
 employed (%) (3a)                  26                     21
Return on capital employed
 (%) (3b)                           13                     10
EBITDA to sales (%) (3d)            12                      9
(1) Certain measures presented in this table are not recognized measures
under IFRS. Refer to Supplemental Information 6.
(2) Restated for reclassifications resulting from discontinued operations.
(3) Adjusted 2014 amounts removing the impact of the purchase gain and
goodwill impairment.
   (a) Retail 15%, Retail - North America 18%, Consolidated Agrium 13%.
   (b) Retail 8%, Retail - North America 9%, Consolidated Agrium 10%.
   (c) Retail 74%, Consolidated Agrium 61%.
   (d) Retail 8%, Retail - North America 9%, Consolidated Agrium 12%.

                                AGRIUM INC.
                       Supplemental Information 6 (1)
               Accompanying Notes to Supplemental Information

---------------------------------------------------------------------------
---------------------------------------------------------------------------
IFRS Financial Measure                       Definition
---------------------------------------------------------------------------
Average non-cash         Rolling four quarter average non-cash working
 working capital to      capital divided by sales.
 sales (2)
Operating coverage       Gross profit less earnings (loss) from continuing
 ratio (2)               operations before finance costs and income taxes,
                         divided by gross profit.
Non-cash working         Current assets less current liabilities, excluding
 capital (2)             cash and cash equivalents, other current assets,
                         short-term debt, current portion of long-term debt
                         and current assets and liabilities held for sale.
---------------------------------------------------------------------------
---------------------------------------------------------------------------
                                                   Usefulness of Additional
                                                     or Non-IFRS Financial
                                Definition                  Measure
---------------------------------------------------------------------------
Additional IFRS Financial Measure (As defined in
 Canadian Securities Administrators' Staff Notice
 52-306 (Revised))
---------------------------------------------------------------------------
EBIT                     Earnings (loss) from      Used to measure
                         continuing operations     operating performance
                         before finance costs and  exclusive of capital
                         income taxes.             structure and income
                                                   taxes.
Return on operating      Last 12 months' EBIT      Used to measure
 capital employed (2)    less income taxes at a    operating performance
                         tax rate of 27 percent    and efficiency of our
                         (2013 - 27 percent)       capital allocation
                         divided by rolling four   process.
                         quarter average
                         operating capital
                         employed. Operating
                         capital employed
                         includes non-cash
                         working capital,
                         property, plant and
                         equipment, investments
                         in associates and joint
                         ventures and other
                         assets.
Return on capital        Last 12 months' EBIT      Used to measure
 employed (2)            less income taxes at a    operating performance
                         tax rate of 27 percent    and efficiency of our
                         (2013 - 27 percent)       capital allocation
                         divided by rolling four   process.
                         quarter average capital
                         employed. Capital
                         employed includes
                         operating capital
                         employed, intangibles
                         and goodwill.
---------------------------------------------------------------------------
Non-IFRS Financial Measure
---------------------------------------------------------------------------
EBITDA                   Earnings (loss) from      Refer to EBIT. Also used
                         continuing operations     as a valuation metric
                         before finance costs,     and as an alternative to
                         income taxes,             cash provided by
                         depreciation and          operating activities.
                         amortization.
Adjusted EBITDA          EBITDA before finance     Refer to EBIT and
                         costs, income taxes,      EBITDA. Provides useful
                         depreciation and          information on our
                         amortization of joint     profitability by adding
                         ventures.                 back finance costs,
                                                   income taxes,
                                                   depreciation and
                                                   amortization of joint
                                                   ventures.
EBITDA to sales          EBITDA divided by sales.  Used to measure
                                                   operating performance
                                                   earnings and cash flow
                                                   we generate from each
                                                   dollar of sales.
Capital expenditures     Capital expenditures -    Used to evaluate capital
                         sustaining: Cost of       spending on improving
                         replacements and          existing operations and
                         betterments to our        capacity, or on business
                         facilities.               expansion and
                                                   development.

                         Capital expenditures -
                         investing: Cost of
                         significant expansion of
                         our existing operations.
---------------------------------------------------------------------------
---------------------------------------------------------------------------
(1) Our definitions and our method of calculation for these measures may not
be directly comparable to similar measures presented by other companies.
(2) These measures are IFRS measures or additional IFRS measures when
calculated using information included in our consolidated financial
statements. They are classified as non-IFRS measures when calculated using
information from our Retail or Wholesale segments because the specific
components are not included in our financial statements or notes.

                                AGRIUM INC.
                         Supplemental Information 7
   Reconciliation of Selected Additional and Non-IFRS Financial Measures
            (Millions of U.S. dollars, unless stated otherwise)
                                (Unaudited)

                                      Rolling four quarters ended March 31,
---------------------------------------------------------------------------
                                                      2014
--------------------------------------------------------------------------
                                         Retail -
                                            North             Consolidated
                                          America      Retail       Agrium
--------------------------------------------------------------------------
EBIT less income taxes
 EBIT                                         882         722        1,444
 Income taxes                                 238         195          390
--------------------------------------------------------------------------
                                              644         527        1,054
--------------------------------------------------------------------------
Average operating capital employed
 Average non-cash working capital           1,695       2,263        2,521
 Average property, plant and
  equipment                                   783         905        4,615
 Average investments in associates
  and joint ventures                           32          78          630
 Average other assets                           6          14          110
--------------------------------------------------------------------------
                                            2,516       3,260        7,876
                                     -------------------------------------
Return on operating capital employed
 (%)                                           26          16           13
--------------------------------------------------------------------------
--------------------------------------------------------------------------
Average capital employed
 Average operating capital employed         2,516       3,260        7,876
 Average intangibles                          588         660          687
 Average goodwill                           1,777       2,043        2,109
--------------------------------------------------------------------------
                                            4,881       5,963       10,672
--------------------------------------------------------------------------
Return on capital employed (%)                 13           9           10
--------------------------------------------------------------------------
--------------------------------------------------------------------------


                                AGRIUM INC.
                         Supplemental Information 7
   Reconciliation of Selected Additional and Non-IFRS Financial Measures
            (Millions of U.S. dollars, unless stated otherwise)
                                (Unaudited)

                                      Rolling four quarters ended March 31,
---------------------------------------------------------------------------
                                                      2013
---------------------------------------------------------------------------
                                          Retail -
                                             North             Consolidated
                                           America      Retail       Agrium
---------------------------------------------------------------------------
EBIT less income taxes
 EBIT                                          646         671        2,199
 Income taxes                                  181         188          613
---------------------------------------------------------------------------
                                               465         483        1,586
---------------------------------------------------------------------------
Average operating capital employed
 Average non-cash working capital            1,596       2,272        2,540
 Average property, plant and
  equipment                                    621         741        3,284
 Average investments in associates
  and joint ventures                            24          85          621
 Average other assets                            5          19           58
---------------------------------------------------------------------------
                                             2,246       3,117        6,503
                                     --------------------------------------
Return on operating capital employed
 (%)                                            21          15           24
---------------------------------------------------------------------------
---------------------------------------------------------------------------
Average capital employed
 Average operating capital employed          2,246       3,117        6,503
 Average intangibles                           492         576          631
 Average goodwill                            1,805       2,228        2,323
---------------------------------------------------------------------------
                                             4,543       5,921        9,457
---------------------------------------------------------------------------
Return on capital employed (%)                  10           8           17
---------------------------------------------------------------------------
---------------------------------------------------------------------------

Contacts:
Agrium Inc.
Investor/Media Relations:
Richard Downey
Vice President, Investor & Corporate Relations
(403) 225-7357

Agrium Inc.
Todd Coakwell
Director, Investor Relations
(403) 225-7437

Agrium Inc.
Louis Brown
Analyst, Investor Relations
(403) 225-7761
www.agrium.com

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