SYS-CON MEDIA Authors: Doug Masi, Mat Mathews, PR.com Newswire, David Smith, Tim Crawford

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Agrium Announces Record Retail Second Quarter Results

CALGARY, ALBERTA -- (Marketwired) -- 08/06/14 --

ALL AMOUNTS ARE STATED IN U.S.$

Agrium Inc. (TSX:AGU) (NYSE:AGU) announced today consolidated net earnings ("net earnings") from continuing operations of $625-million ($4.34 diluted earnings per share) for the second quarter of 2014, compared with net earnings from continuing operations of $744-million in the second quarter of 2013 ($5.00 diluted earnings per share).

The 2014 second quarter results included non-cash charges for future environmental remediation activities of $22-million ($0.11 diluted earnings per share). These were partially offset by a $16-million ($0.08 diluted earnings per share) share-based payments recovery. Excluding these items, net earnings from continuing operations would have been $629-million ($4.37 diluted earnings per share) versus our 2014 second quarter earnings guidance of $3.85 to $4.35 diluted earnings per share.(1)

"Agrium Retail operations delivered record results this quarter, with EBITDA(2) up 28 percent year-over-year supported by strong results from our recently acquired Canadian and Australian operations. We continue to drive synergies and operational improvements across our global retail network. As a result, we made significant progress towards all our key Retail operational metrics and remain focused on our 2015 financial targets," commented Chuck Magro, Agrium's President and CEO.

"Agrium has a unique strategic position to meet widespread agricultural demand, with over half a million customers globally, significant advantages in our nitrogen and potash businesses and a complimentary portfolio of products and services. Agrium continues to focus on maximizing operational and financial efficiencies across our complimentary portfolio of assets, including optimization of working capital and operating costs. Combined with Agrium's current growth projects, we believe these initiatives will drive higher free cash flow and subsequent shareholder returns," added Mr. Magro.


(1) Second quarter effective tax rate of 28 percent used for adjusted       
    diluted earnings per share calculation.                                 
(2) EBITDA is defined as earnings from continuing operations before finance 
    costs, income taxes, depreciation and amortization. EBITDA is not a     
    recognized measure under IFRS. See "Additional IFRS and Non-IFRS        
    Financial Measures" in our 2014 second quarter Management's Discussion  
    and Analysis.                                                           

MANAGEMENT'S DISCUSSION AND ANALYSIS

August 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 second quarter of 2014 (three months ended June 30, 2014) are against results for the second quarter of 2013 (three months ended June 30, 2013). All dollar amounts refer to United States ("U.S.") dollars except where otherwise stated. The financial measures EBITDA, Adjusted EBITDA and Retail operating coverage ratio 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 August 6, 2014 and should be read in conjunction with the Consolidated Interim Financial Statements for the three and six months ended June 30, 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.

2014 Second Quarter Operating Results

CONSOLIDATED NET EARNINGS

Agrium's 2014 second quarter net earnings from continuing operations were $625-million, or $4.34 diluted earnings per share from continuing operations, compared to net earnings from continuing operations of $744-million, or $5.00 diluted earnings per share from continuing operations, for the same quarter of 2013.


Financial Overview                                                          
                                                                            
----------------------------------------------------------------------------
(millions of U.S.                                                           
 dollars, except    Three months ended June 30,  Six months ended June 30,  
 per share amounts                            %                           % 
 and where noted)     2014   2013 Change Change   2014   2013 Change Change 
----------------------------------------------------------------------------
Sales                7,338  6,908    430      6 10,417 10,064    353      4 
----------------------------------------------------------------------------
Gross profit         1,599  1,699   (100)    (6) 2,155  2,404   (249)   (10)
----------------------------------------------------------------------------
Expenses               704    635     69     11  1,207  1,101    106     10 
----------------------------------------------------------------------------
Earnings before                                                             
 finance costs and                                                          
 income taxes                                                               
 ("EBIT")              895  1,064   (169)   (16)   948  1,303   (355)   (27)
----------------------------------------------------------------------------
Net earnings from                                                           
 continuing                                                                 
 operations            625    744   (119)   (16)   637    890   (253)   (28)
----------------------------------------------------------------------------
Net earnings           616    747   (131)   (18)   619    888   (269)   (30)
----------------------------------------------------------------------------
Diluted earnings per                                                        
 share from                                                                 
 continuing                                                                 
 operations           4.34   5.00  (0.66)   (13)  4.42   5.97  (1.55)   (26)
----------------------------------------------------------------------------
Diluted earnings per                                                        
 share                4.28   5.02  (0.74)   (15)  4.29   5.96  (1.67)   (28)
----------------------------------------------------------------------------
Effective tax rate                                                          
 (%)                    28     27    N/A    N/A     28     27    N/A    N/A 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
Sales and Gross Profit                                                      
                                                                            
----------------------------------------------------------------------------
                                      Quarter to date                       
                                           change       Year to date change 
                                                  Gross               Gross 
(millions of U.S. dollars)              Sales    Profit     Sales    Profit 
----------------------------------------------------------------------------
Retail                                    834       207       927       218 
----------------------------------------------------------------------------
Wholesale                                (382)     (276)     (513)     (448)
----------------------------------------------------------------------------
Other                                     (22)      (31)      (61)      (19)
----------------------------------------------------------------------------
                                          430      (100)      353      (249)
----------------------------------------------------------------------------
----------------------------------------------------------------------------

Retail sales and gross profit for the second quarter and first half of 2014 increased compared to the prior year primarily due to the inclusion of results from Viterra Inc. ("Viterra") retail centers further supported by improvements in gross profit in Australia and Argentina (see section "Retail" for further discussion).

Wholesale sales and gross profit for the second quarter and the first half of 2014 decreased compared to the prior year primarily as a result of lower realized sales prices consistent with benchmark pricing (see section "Wholesale" for further discussion).

Expenses

Expenses increased by $69-million and $106-million for the second quarter and first half of 2014, respectively, compared to the same periods last year. The difference is largely a result of an increase in Retail selling expenses of $65-million in the second quarter and $112-million in the first half of 2014, primarily driven by increased costs from the inclusion of results from Viterra retail centers in Western Canada.

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


----------------------------------------------------------------------------
                                     Three months ended   Six months ended  
                                          June 30,            June 30,      
(millions of U.S. dollars)               2014      2013      2014      2013 
----------------------------------------------------------------------------
Realized and unrealized gain on                                             
 commodity derivatives not                                                  
 designated as hedges                       -        (1)      (32)       (9)
----------------------------------------------------------------------------
Realized and unrealized loss (gain)                                         
 on foreign exchange derivatives not                                        
 designated as hedges                      27         4        12        (9)
----------------------------------------------------------------------------
Interest income                           (19)      (16)      (30)      (31)
----------------------------------------------------------------------------
Foreign exchange (gain) loss              (29)        7       (17)       26 
----------------------------------------------------------------------------
Environmental remediation and asset                                         
 retirement obligations                    22         3        20         4 
----------------------------------------------------------------------------
Bad debt expense                           25        21        30        26 
----------------------------------------------------------------------------
Potash profit and capital tax               3         8         6        12 
----------------------------------------------------------------------------
Other                                      13        16        13        12 
----------------------------------------------------------------------------
                                           42        42         2        31 
----------------------------------------------------------------------------
----------------------------------------------------------------------------

Effective Tax Rate

The effective tax rate on continuing operations was 28 percent for the second quarter and 28 percent for first half of 2014 and is higher than the effective tax rate of 27 percent and 27 percent, respectively, for the same periods last year due to a decrease in income earned in low tax jurisdictions.

BUSINESS SEGMENT PERFORMANCE

Retail

Retail's 2014 second quarter sales were a record $6.4-billion, a 15 percent increase compared to sales of $5.6-billion for the same period last year. Total gross profit was $1.3-billion in the second quarter of 2014, compared to the $1.1-billion achieved in the second quarter of 2013. The record results in sales and gross profit were due to a combination of the contribution from the acquired Viterra agri-retail operations, an improvement in international operations and continued earnings growth for the our legacy North American business. While the spring season was delayed in North America this year, growers were able to complete a majority of seeding and application of major crop inputs in a timely manner. Retail reported record EBITDA of $791-million in the second quarter of 2014, compared to $619-million in the second quarter of last year. The acquired Viterra operations accounted for over half of the $172-million increase in EBITDA in the current quarter. International Retail operations contributed $50-million in EBITDA this quarter, compared to $21-million in the second quarter of 2013. The increase in international Retail results was due to lower costs and an improved livestock market in Australia and improved growing conditions and margins in both Australia and South America.

Crop nutrient sales were $2.7-billion this quarter, compared to $2.5-billion in the second quarter of 2013. The increase was due to additional volumes from the acquired Viterra operations and an approximate 4 percent increase in U.S. sales volumes, as the impact of lower corn acreage was offset by stronger application rates. The increase in volumes more than offset lower global crop nutrient prices compared to the same period last year. Gross profit for crop nutrients was $505-million this quarter, up 19 percent from the $424-million reported in the second quarter of 2013. Total crop nutrient margins as a percentage of sales were 18.6 percent in the second quarter of 2014, compared to 17.1 percent in the same period last year.

Crop protection sales were $2.2-billion in the second quarter of 2014, compared to the $1.8-billion in sales reported in the same period last year. Total crop protection gross profit this quarter was $457-million, compared to $406-million reported in the second quarter of 2013. The increase in sales and gross profit was due to a combination of the contribution from the acquired Viterra operations and a shift in some sales from the first quarter of 2014 into the second quarter of this year. Total crop protection margins as a percentage of sales declined to 20.8 percent this quarter, compared to 22.0 percent in the same period last year. The reduction in margins this quarter was largely due to averaging in the lower margin product mix from the Viterra operations and from pricing pressures and product mix in the U.S. crop protection market this spring.

Seed sales were $1.0-billion in the second quarter of 2014, an increase from the $809-million achieved in the second quarter last year. Gross profit was $196-million this quarter, up 40 percent from the $140-million earned in the second quarter of 2013. The increase in seed sales and gross profit is attributed to contributions from Viterra's seed business and higher sales of cotton and soybean seed units in the U.S. Corn seed volumes remained flat this quarter versus the same period last year despite a reduction in U.S. corn acreage. Total seed margins as a percentage of sales were 18.9 percent in the second quarter of 2014, an increase of 1.6 percent from the same period in 2013. The increase in margins compared to last year was due to contributions from Viterra's higher margin proprietary canola seed business.

Merchandise sales in the second quarter of 2014 were $218-million, compared to $142-million in the same period last year. Gross profit for this product group was $24-million this quarter, which is similar to the $23-million reported in the second quarter of 2013. The increase in sales and gross profit is due to the addition of the Viterra fuel and equipment business lines, which were partially offset by decreased offerings of lower margin general merchandise in Australia.

Services and other sales were $234-million this quarter, compared to the $279-million reported in the second quarter of 2013. The decrease in sales was a result of the closure of the wool export business in Australia. Gross profit was $167-million in the second quarter of 2014, compared to $149-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, the addition of the Viterra business and stronger margins for services at our legacy North America operations. Services and other sales margins as a percentage of sales were 71 percent this quarter versus 53 percent last year.

Retail selling expenses for the second quarter of 2014 were $603-million, an increase of $65-million compared to the $538-million reported in the second quarter of last year. The increase was due to the addition of the Viterra business and the associated payroll and depreciation expenses. Total selling expenses as a percentage of sales decreased to 9.4 percent in the second quarter of 2014, compared to 9.7 percent reported in the second quarter last year. The reduction in percentage selling expenses is due to improvements in international operations and the continued leveraging of size and scale of the North American operations. The operating coverage ratio (rolling four quarters as of June 30, 2014) is 69 percent compared to 72 percent as of June 30, 2013.

Wholesale

Wholesale's 2014 second quarter sales were $1.2-billion, down from the $1.6-billion reported in the same quarter last year. Gross profit was $227-million this quarter, compared to $503-million in the second quarter of 2013. Wholesale Adjusted EBITDA was $263-million in the second quarter of 2014 compared to $542-million reported in the same period last year. The reduction in earnings was primarily the result of lower global benchmark prices across all nutrients and a reduction in nitrogen sales volumes due to planned and unplanned plant outages this quarter.

Nitrogen gross profit in the second quarter of 2014 was $101-million compared to $294-million in the same quarter last year. Nitrogen sales volumes declined 18 percent to 906,000 tonnes. This was a result of an unplanned outage at the Carseland facility during the quarter accounting for 158,000 tonnes of lost production, and a planned turnaround at the Fort Saskatchewan facility. Realized sales prices for nitrogen were $464 per tonne this quarter compared to $582 per tonne in the second quarter of 2013 as a result of lower benchmark pricing. Nitrogen cost of product sold was $353 per tonne this quarter, an increase from the $315 per tonne reported in the second quarter of 2013, due to higher natural gas costs and higher costs resulting from planned and unplanned outages. Average nitrogen gross margins were $111 per tonne this quarter, compared to $267 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 $4.49/MMBtu this quarter ($4.51/MMBtu including the impact of realized losses on natural gas derivatives), compared to $3.67/MMBtu for the same period in 2013 ($3.73/MMBtu including the impact of realized losses on natural gas derivatives). Derivative gains or losses not designated as hedges 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 second quarter of 2014 was $4.56/MMBtu, compared to $4.09/MMBtu in the same quarter last year. The AECO (Alberta) basis differential was a $0.30/MMBtu discount to NYMEX in the second quarter of 2014, a decrease from the $0.56/MMBtu discount in the second quarter of 2013.

Potash gross profit for the second quarter of 2014 was $72-million, compared to $120-million reported in the same quarter last year. The decrease was driven by lower benchmark and realized sales prices. Sales volumes increased to 566,000 tonnes this quarter compared to 544,000 tonnes in the second quarter of 2013. Increased domestic demand resulted from a strong spring application season and an early fall fill program, which more than offset reduced international shipments due to a lower Canpotex allocation. Potash total cost of product sold was $182 per tonne this quarter, up from the $168 per tonne reported in the same quarter last year. The increase was due to the proportionately higher percentage of domestic sales, which unlike international sales include freight costs. The cost of production on a per tonne basis was slightly lower year over year, as both variable and fixed costs were reduced on a per tonne basis. Gross margin on a per tonne basis was $128 in the second quarter of 2014, compared to the $221 per tonne realized during the same quarter in 2013.

Phosphate gross profit was $6-million in the second quarter of 2014, compared to $27-million in the same quarter last year. The decrease was due to lower realized sales prices and sales volumes. Realized phosphate sales prices were $598 per tonne this quarter, a decrease from $667 per tonne in the same period last year as a result of lower benchmark prices. Phosphate sales volumes were 268,000 tonnes in the second quarter of 2014, down 49,000 tonnes compared to the same period last year. The primary causes of the lower sales volumes were production issues relating to imported rock quality at the Redwater facility and a planned turnaround at the Conda facility. Phosphate cost of product sold was $576 per tonne in the second quarter of 2014, slightly lower than the same period last year. Gross margin in the second quarter of 2014 was $22 per tonne compared to $83 per tonne in the same period last year.

Wholesale expenses in the second quarter of 2014 were $36-million compared to $38-million in the same period last year.

Other

EBITDA for our Other non-operating business unit for the second quarter of 2014 was a loss of $6-million, compared to income of $38-million for the second quarter of 2013. The $31-million unfavorable change in gross profit was due to more inter-segment inventory held in our Retail business unit not yet sold to external customers. Coupled with this was a $14-million lower share-based payments recovery resulting from less of a decrease of our share price during the second quarter of 2014 compared to the second quarter of 2013.

EBITDA for Other in the first half of 2014 was a loss of $74-million, compared to a loss of $24-million for the first half of 2013. The change was comprised of:


--  A $19-million unfavorable change in gross profit for the first half of
    2014 compared to the first half of 2013 which reflected more inter-
    segment inventory held in our Retail business unit not yet sold to
    external customers; and 
--  An increase in share-based payments expense of $29-million resulting
    from a $15-million expense in the first half of 2014 compared to the
    recovery of $14-million in the first half of 2013. 

FINANCIAL CONDITION

The following are changes to working capital on our Consolidated Balance Sheets in the six-month period ended June 30, 2014 compared to December 31, 2013.


----------------------------------------------------------------------------
(millions of                                                                
 U.S. dollars,                                                              
 except as       June 30,  December 31,      $      %   Explanation of the  
 noted)              2014          2013 Change Change   change in balance   
----------------------------------------------------------------------------
Current assets                                                              
 Cash and cash        759           801    (42)    (5%) See discussion under
  equivalents                                           the section         
                                                        "Liquidity and      
                                                        Capital Resources". 
----------------------------------------------------------------------------
 Accounts           3,542         2,105  1,437     68%  Increased sales     
  receivable                                            during the spring   
                                                        season resulted in  
                                                        higher Retail trade 
                                                        and vendor rebates  
                                                        receivable.         
----------------------------------------------------------------------------
 Income taxes           4            78    (74)   (95%) First half tax      
  receivable                                            provision exceeded  
                                                        tax installment     
                                                        payments made       
                                                        coupled with current
                                                        period tax receipts.
----------------------------------------------------------------------------
 Inventories        3,097         3,413   (316)    (9%) Inventory drawdown  
                                                        due to increased    
                                                        seasonal sales      
                                                        activity.           
----------------------------------------------------------------------------
 Prepaid              157           805   (648)   (80%) Drawdown of prepaid 
  expenses and                                          inventory due to    
  deposits                                              increased seasonal  
                                                        sales activity in   
                                                        the spring.         
----------------------------------------------------------------------------
 Other current        124           104     20     19%  Increase in the     
  assets                                                amount of           
                                                        investments.        
----------------------------------------------------------------------------
 Assets held for      210           202      8      4%  -                   
  sale                                                                      
----------------------------------------------------------------------------
Current                                                                     
 liabilities                                                                
 Short-term debt    1,202           764    438     57%  Issuance of         
                                                        commercial paper    
                                                        used for working    
                                                        capital and capital 
                                                        expenditures.       
----------------------------------------------------------------------------
 Accounts           4,263         3,985    278      7%  Increased Retail    
  payable                                               inventory purchases 
                                                        due to increased    
                                                        sales activity,     
                                                        partially offset by 
                                                        drawdown of customer
                                                        prepayments during  
                                                        the spring          
                                                        application season. 
----------------------------------------------------------------------------
 Income taxes         179             2    177  8,850%  First half provision
  payable                                               exceeded the first  
                                                        half installments.  
----------------------------------------------------------------------------
 Current portion       54            58     (4)    (7%) -                   
  of long-term                                                              
  debt                                                                      
----------------------------------------------------------------------------
 Current portion      116           112      4      4%  -                   
  of other                                                                  
  provisions                                                                
----------------------------------------------------------------------------
 Liabilities           55            44     11     25%  Increase in accounts
  held for sale                                         payable during the  
                                                        spring sales season.
----------------------------------------------------------------------------
Working capital     2,024         2,543   (519)   (20%)                     
----------------------------------------------------------------------------
----------------------------------------------------------------------------

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:


----------------------------------------------------------------------------
                                         Six months ended June 30,          
(millions of U.S. dollars)               2014           2013         Change 
----------------------------------------------------------------------------
Cash provided by operating                                                  
 activities                               798            295            503 
----------------------------------------------------------------------------
Cash (used in) provided by                                                  
 investing activities                  (1,036)           117         (1,153)
----------------------------------------------------------------------------
Cash provided by (used in)                                                  
 financing activities                     214           (548)           762 
----------------------------------------------------------------------------
Effect of exchange rate changes                                             
 on cash and cash equivalents             (19)           (33)            14 
----------------------------------------------------------------------------
Decrease in cash and cash                                                   
 equivalents from continuing                                                
 operations                               (43)          (169)           126 
----------------------------------------------------------------------------
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Cash and cash equivalents                                                   
 provided by discontinued                                                   
 operations                                 1              5             (4)
----------------------------------------------------------------------------
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Analysis of cash flows for the six months ended June 30, 2014

Cash flows from operating activities increased primarily due to lower working capital requirements. Our sales increased in 2014, however we achieved lower receivable balances due to a faster collection period while increased accounts payable reflected later purchasing from delayed sales during the season attributed to wet weather. This was coupled with lower taxes paid for the period resulting from reduced earnings in 2013. Current period net earnings were reduced due to lower commodity selling prices.

Cash used in investing activities during the six months consisted of $1,002-million in capital expenditures, primarily for our Vanscoy potash facility expansion.

Cash was provided by financing activities through the issuance of short-term debt, primarily under our commercial paper facility.


Capital Expenditures                                                        
                                                                            
----------------------------------------------------------------------------
                                                      Six months ended      
                                                          June 30,          
(millions of U.S. dollars)                               2014           2013
----------------------------------------------------------------------------
Sustaining capital                                        300            231
----------------------------------------------------------------------------
Investing capital                                         702            519
----------------------------------------------------------------------------
Total                                                   1,002            750
----------------------------------------------------------------------------
----------------------------------------------------------------------------

Our investing capital expenditures increased in the first half of 2014 compared to the first half of 2013 due to increased activity on the Vanscoy potash expansion project. Ongoing challenges with contractor productivity on the potash expansion project continues to place significant upward pressure on the total project cost. We anticipate second half 2014 total capital expenditures to be at, or above, the first half of 2014.

Short-term Debt

Our short-term debt of $1,202-million at June 30, 2014 is summarized in note 5 of our Consolidated Financial Statements.

OUTSTANDING SHARE DATA

Agrium had approximately 144 million outstanding shares at July 31, 2014. At that date, under our stock option plans, shares expected to be issued for options outstanding were negligible.


SELECTED QUARTERLY INFORMATION                                              
                                                                            
----------------------------------------------------------------------------
(millions of U.S.                                                           
 dollars, except per  2014   2014   2013   2013   2013   2013   2012   2012 
 share amounts)         Q2     Q1     Q4     Q3     Q2     Q1     Q4     Q3 
----------------------------------------------------------------------------
Sales                7,338  3,079  2,867  2,796  6,908  3,156  3,093  2,768 
----------------------------------------------------------------------------
Gross profit         1,599    556    740    629  1,699    705    974    730 
----------------------------------------------------------------------------
Net earnings from                                                           
 continuing                                                                 
 operations            625     12    110     80    744    146    358    140 
----------------------------------------------------------------------------
Net (loss) earnings                                                         
 from discontinued                                                          
 operations             (9)    (9)   (11)    (4)     3     (5)    (4)   (11)
----------------------------------------------------------------------------
Net earnings           616      3     99     76    747    141    354    129 
----------------------------------------------------------------------------
Earnings per share                                                          
 from continuing                                                            
 operations                                                                 
 attributable to                                                            
 equityholders of                                                           
 Agrium:                                                                    
----------------------------------------------------------------------------
  Basic               4.34   0.08   0.74   0.54   5.00   0.98   2.37   0.87 
----------------------------------------------------------------------------
  Diluted             4.34   0.08   0.74   0.54   5.00   0.98   2.36   0.87 
----------------------------------------------------------------------------
(Loss) earnings per                                                         
 share from                                                                 
 discontinued                                                               
 operations                                                                 
 attributable to                                                            
 equity holders of                                                          
 Agrium:                                                                    
----------------------------------------------------------------------------
  Basic              (0.06) (0.06) (0.08) (0.02)  0.02  (0.04) (0.03) (0.07)
----------------------------------------------------------------------------
  Diluted            (0.06) (0.06) (0.08) (0.02)  0.02  (0.04) (0.02) (0.07)
----------------------------------------------------------------------------
Earnings per share                                                          
 attributable to                                                            
 equity holders of                                                          
 Agrium:                                                                    
----------------------------------------------------------------------------
  Basic               4.28   0.02   0.66   0.52   5.02   0.94   2.34   0.80 
----------------------------------------------------------------------------
  Diluted             4.28   0.02   0.66   0.52   5.02   0.94   2.34   0.80 
----------------------------------------------------------------------------
----------------------------------------------------------------------------

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.

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. On July 2, 2014, Agrium announced the completion of the sale of the Turf and Ornamental business for approximately $94-million.

ADDITIONAL IFRS AND NON-IFRS FINANCIAL MEASURES

Certain financial measures in this press release and 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 financial statement 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 press release, 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           Definition                Management's assessment 
 financial measures                                                         
----------------------------------------------------------------------------
EBIT                      Earnings (loss) from      EBIT provides a         
                           continuing operations     supplemental measure   
                           before finance costs      used by management to: 
                           and income taxes.         (1) evaluate the       
                                                     effectiveness of our   
                                                     businesses; (2)        
                                                     evaluate our 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        Definition                Management's assessment 
 measures                                                                   
----------------------------------------------------------------------------
EBITDA                    Earnings (loss) from      Refer to EBIT. This     
                           continuing operations     measure is also used by
                           before finance costs,     investors and          
                           income taxes,             securities analysts as 
                           depreciation and          a valuation metric and 
                           amortization.             as an alternative to   
                                                     cash provided by       
                                                     operating activities.  
----------------------------------------------------------------------------
Adjusted EBITDA           EBITDA before finance     Refer to EBIT and       
                           costs, income taxes,      EBITDA. Management     
                           depreciation and          believes that this     
                           amortization of joint     metric provides useful 
                           ventures.                 comparative information
                                                     on our profitability by
                                                     adding back finance    
                                                     costs, income taxes,   
                                                     depreciation and       
                                                     amortization of joint  
                                                     ventures.              
----------------------------------------------------------------------------
Retail operating          Retail gross profit less  Metric used by          
 coverage ratio            earnings (loss) from      management to evaluate 
                           continuing operations     our Retail business. We
                           before finance costs      believe this metric is 
                           and income taxes,         also useful to         
                           divided by gross          investors and          
                           profit.                   securities analysts in 
                                                     evaluating operating   
                                                     performance of our     
                                                     Retail business.       
----------------------------------------------------------------------------
                                                                            
RECONCILIATIONS OF ADDITIONAL IFRS AND NON-IFRS FINANCIAL MEASURES          
                                                                            
Adjusted EBITDA and EBITDA to EBIT                                          
                                                                            
----------------------------------------------------------------------------
                                             Three months ended             
                                                June 30, 2014               
(millions of U.S. dollars)          Retail Wholesale     Other Consolidated 
----------------------------------------------------------------------------
Adjusted EBITDA                        791       263        (6)       1,048 
----------------------------------------------------------------------------
Equity accounted joint ventures:                                            
  Finance costs and income taxes         -         8         -            8 
----------------------------------------------------------------------------
  Depreciation and amortization          -         3         -            3 
----------------------------------------------------------------------------
EBITDA                                 791       252        (6)       1,037 
----------------------------------------------------------------------------
Depreciation and amortization           77        61         4          142 
----------------------------------------------------------------------------
EBIT                                   714       191       (10)         895 
----------------------------------------------------------------------------
----------------------------------------------------------------------------

                                                                            
----------------------------------------------------------------------------
                                             Three months ended             
                                                June 30, 2013               
(millions of U.S. dollars)          Retail Wholesale     Other Consolidated 
----------------------------------------------------------------------------
Adjusted EBITDA                        619       542        38        1,199 
----------------------------------------------------------------------------
Equity accounted joint ventures:                                            
  Finance costs and income taxes         -         7         -            7 
----------------------------------------------------------------------------
  Depreciation and amortization          -         1         -            1 
----------------------------------------------------------------------------
EBITDA                                 619       534        38        1,191 
----------------------------------------------------------------------------
Depreciation and amortization           57        69         1          127 
----------------------------------------------------------------------------
EBIT                                   562       465        37        1,064 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
----------------------------------------------------------------------------
                                              Six months ended              
                                                June 30, 2014               
(millions of U.S. dollars)          Retail Wholesale     Other Consolidated 
----------------------------------------------------------------------------
Adjusted EBITDA                        808       500       (74)       1,234 
----------------------------------------------------------------------------
Equity accounted joint ventures:                                            
  Finance costs and income taxes         -        12         -           12 
----------------------------------------------------------------------------
  Depreciation and amortization          -         5         -            5 
----------------------------------------------------------------------------
EBITDA                                 808       483       (74)       1,217 
----------------------------------------------------------------------------
Depreciation and amortization          149       114         6          269 
----------------------------------------------------------------------------
EBIT                                   659       369       (80)         948 
----------------------------------------------------------------------------
----------------------------------------------------------------------------

                                                                            
----------------------------------------------------------------------------
                                              Six months ended              
                                                June 30, 2013               
(millions of U.S. dollars)          Retail Wholesale     Other Consolidated 
----------------------------------------------------------------------------
Adjusted EBITDA                        644       935       (24)       1,555 
----------------------------------------------------------------------------
Equity accounted joint ventures:                                            
  Finance costs and income taxes         -        14         -           14 
----------------------------------------------------------------------------
  Depreciation and amortization          -         3         -            3 
----------------------------------------------------------------------------
EBITDA                                 644       918       (24)       1,538 
----------------------------------------------------------------------------
Depreciation and amortization          110       119         6          235 
----------------------------------------------------------------------------
EBIT                                   534       799       (30)       1,303 
----------------------------------------------------------------------------
----------------------------------------------------------------------------

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 Interim Financial Statements for the quarter ended March 31, 2014.

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 June 30, 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.

MARKET OUTLOOK

Favorable growing conditions in most major agriculture regions have boosted global crop production prospects in recent months. Growers in the U.S. Corn Belt have particularly benefitted from advantageous growing conditions. The United States Department of Agriculture ("USDA") recently reported the U.S. corn crop in the best condition since 1999 and the soybean crop in the best condition since 1994. In response to these robust growing conditions, prices of most major grains and oilseeds have declined and analysts are projecting that 2014/15 prices will be the lowest they have been since 2009/10. Grower margins are more sensitive to changes in crop prices than any other variable, so lower crop prices would result in lower per acre cash margins; however, strong crop yields will offset some of the crop price decline. While the financial benefit of applying crop inputs does not change significantly at current crop prices versus the prices earlier in the year, some precautionary applications of crop protection and plant health products may be impacted.

Wet conditions throughout many areas of North America delayed herbicide application early in the growing season. These conditions were conducive to disease development, which has supported fungicide demand; however, there have been some areas in the Northern U.S. and Western Canada that have continued to struggle to get equipment into wet fields. In general, we expect that growers will continue to promote optimal plant health through application of crop protection products and nutritionals in order to maintain yield potential.

Crop nutrient demand in the third quarter to date has been steady, despite lower crop prices. With 2013/14 logistical constraints fresh in the memories of buyers, the retail chain has sought to re-fill the empty North American supply chain following strong demand in the first half of 2014. The global nitrogen market has been relatively stable, as prices have been supported by Chinese urea costs and low availability out of the Ukraine. At current international urea prices, we expect that Chinese urea exports in the second half of 2014 will be below the same period in 2013. Buyer confidence in the potash market has supported firm demand for the second half of 2014 and Canpotex recently reported that it was sold out of potash for the third quarter. Firm demand has also supported the phosphate market, but the Indian market remains a source of uncertainty in the second half of 2014 as the Indian monsoon rains were historically low in June.

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; and other plans, strategies, objectives and expectations, including with respect to future operations of Agrium 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 yield and 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. There is risk regarding the size and timing of expected synergies related to our acquisition of certain Retail Agri-products assets of Viterra; and there is a risk of additional capital expenditure cost escalation on the potash expansion project; 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 Direct Solutions business 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.

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 2nd Quarter Conference Call will be available in a listen-only mode beginning Thursday, August 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     Six months ended   
                                       June 30,              June 30,       
----------------------------------------------------------------------------
                                      2014   2013 (1)       2014   2013 (1) 
----------------------------------------------------------------------------
                                                                            
----------------------------------------------------------------------------
Sales                                7,338      6,908     10,417     10,064 
----------------------------------------------------------------------------
Cost of product sold                 5,739      5,209      8,262      7,660 
----------------------------------------------------------------------------
Gross profit                         1,599      1,699      2,155      2,404 
----------------------------------------------------------------------------
Expenses                                                                    
----------------------------------------------------------------------------
 Selling                               609        546      1,053        942 
----------------------------------------------------------------------------
 General and administrative                                                 
  (note 3)                              66         62        166        156 
----------------------------------------------------------------------------
 Earnings from associates and                                               
  joint ventures                       (13)       (15)       (14)       (28)
----------------------------------------------------------------------------
 Other expenses (note 3)                42         42          2         31 
----------------------------------------------------------------------------
Earnings before finance costs                                               
 and income taxes                      895      1,064        948      1,303 
----------------------------------------------------------------------------
 Finance costs related to long-                                             
  term debt                              9         21         28         43 
----------------------------------------------------------------------------
 Other finance costs                    18         21         35         39 
----------------------------------------------------------------------------
Earnings before income taxes           868      1,022        885      1,221 
----------------------------------------------------------------------------
 Income taxes                          243        278        248        331 
----------------------------------------------------------------------------
Net earnings from continuing                                                
 operations                            625        744        637        890 
----------------------------------------------------------------------------
Net (loss) earnings from                                                    
 discontinued operations (note                                              
 2)                                     (9)         3        (18)        (2)
----------------------------------------------------------------------------
Net earnings                           616        747        619        888 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Attributable to:                                                            
----------------------------------------------------------------------------
 Equity holders of Agrium              615        749        617        890 
----------------------------------------------------------------------------
 Non-controlling interest                1         (2)         2         (2)
----------------------------------------------------------------------------
Net earnings                           616        747        619        888 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
Earnings per share attributable                                             
 to equity holders of Agrium                                                
 (note 4)                                                                   
----------------------------------------------------------------------------
 Basic and diluted earnings per                                             
  share from continuing                                                     
  operations                          4.34       5.00       4.42       5.97 
----------------------------------------------------------------------------
 Basic and diluted (loss)                                                   
  earnings per share from                                                   
  discontinued operations            (0.06)      0.02      (0.13)     (0.01)
----------------------------------------------------------------------------
 Basic and diluted earnings per                                             
  share                               4.28       5.02       4.29       5.96 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
(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 Six months ended 
                                             June 30,          June 30,     
----------------------------------------------------------------------------
                                            2014     2013     2014     2013 
----------------------------------------------------------------------------
                                                                            
----------------------------------------------------------------------------
Net earnings                                 616      747      619      888 
----------------------------------------------------------------------------
 Other comprehensive income (loss)                                          
----------------------------------------------------------------------------
  Items that are or may be reclassified                                     
   to earnings                                                              
----------------------------------------------------------------------------
   Cash flow hedges                                                         
----------------------------------------------------------------------------
    Effective portion of changes in fair                                    
     value                                    (4)       -       (4)       - 
----------------------------------------------------------------------------
    Deferred income taxes                      1        -        1        - 
----------------------------------------------------------------------------
   Share of comprehensive income of                                         
    associates and joint ventures              1        -        2        1 
----------------------------------------------------------------------------
   Available for sale financial                                             
    instruments                                                             
----------------------------------------------------------------------------
    Gains                                      -        1        -        1 
----------------------------------------------------------------------------
   Foreign currency translation                                             
    differences                                                             
----------------------------------------------------------------------------
    Gains (losses)                           102     (219)      (4)    (243)
----------------------------------------------------------------------------
                                             100     (218)      (5)    (241)
----------------------------------------------------------------------------
  Items that will never be reclassified                                     
   to earnings                                                              
----------------------------------------------------------------------------
   Post-employment benefits                                                 
----------------------------------------------------------------------------
    Actuarial losses                         (20)       -      (20)       - 
----------------------------------------------------------------------------
    Deferred income taxes                      6        -        6        - 
----------------------------------------------------------------------------
                                             (14)       -      (14)       - 
----------------------------------------------------------------------------
 Other comprehensive income (loss)            86     (218)     (19)    (241)
----------------------------------------------------------------------------
Comprehensive income                         702      529      600      647 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Attributable to:                                                            
----------------------------------------------------------------------------
 Equity holders of Agrium                    701      531      598      649 
----------------------------------------------------------------------------
 Non-controlling interest                      1       (2)       2       (2)
----------------------------------------------------------------------------
Comprehensive income                         702      529      600      647 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
See accompanying notes.                                                     
                                                                            
                                 AGRIUM INC.                                
                    Consolidated Statements of Cash Flows                   
                         (Millions of U.S. dollars)                         
                                 (Unaudited)                                
                                                                            
                                  Three months ended     Six months ended   
                                       June 30,              June 30,       
----------------------------------------------------------------------------
                                      2014   2013 (1)       2014   2013 (1) 
----------------------------------------------------------------------------
                                                                            
----------------------------------------------------------------------------
Operating                                                                   
----------------------------------------------------------------------------
 Net earnings from continuing                                               
  operations                           625        744        637        890 
----------------------------------------------------------------------------
 Adjustments for                                                            
----------------------------------------------------------------------------
  Depreciation and amortization        142        127        269        235 
----------------------------------------------------------------------------
  Earnings from associates and                                              
   joint ventures                      (13)       (15)       (14)       (28)
----------------------------------------------------------------------------
  Share-based payments                 (16)       (30)        15        (14)
----------------------------------------------------------------------------
  Unrealized loss (gain) on                                                 
   derivative financial                                                     
   instruments                           9          3         (5)        (4)
----------------------------------------------------------------------------
  Unrealized foreign exchange                                               
   (gain) loss                         (17)       (12)       (19)         4 
----------------------------------------------------------------------------
  Interest income                      (19)       (16)       (30)       (31)
----------------------------------------------------------------------------
  Finance costs                         27         42         63         82 
----------------------------------------------------------------------------
  Income taxes                         243        278        248        331 
----------------------------------------------------------------------------
  Other                                 15          9         27         14 
----------------------------------------------------------------------------
 Interest received                      19         16         31         31 
----------------------------------------------------------------------------
 Interest paid                         (21)       (18)       (53)       (74)
----------------------------------------------------------------------------
 Income taxes paid                     (32)      (200)       (68)      (455)
----------------------------------------------------------------------------
 Dividends from associates and                                              
  joint ventures                         6         14          7         15 
----------------------------------------------------------------------------
 Net changes in non-cash working                                            
  capital                             (931)    (1,007)      (310)      (701)
----------------------------------------------------------------------------
Cash provided by (used in)                                                  
 operating activities                   37        (65)       798        295 
----------------------------------------------------------------------------
Investing                                                                   
----------------------------------------------------------------------------
 Acquisitions, net of cash                                                  
  acquired                              (2)       (15)       (18)       (49)
----------------------------------------------------------------------------
 Repayment of advance on                                                    
  acquisition of Viterra Inc.            -        932          -        932 
----------------------------------------------------------------------------
 Capital expenditures                 (543)      (413)    (1,002)      (750)
----------------------------------------------------------------------------
 Capitalized borrowing costs           (30)       (13)       (53)       (22)
----------------------------------------------------------------------------
 Purchase of investments               (39)         -        (65)        (8)
----------------------------------------------------------------------------
 Proceeds from disposal of                                                  
  investments                           32          -         44          - 
----------------------------------------------------------------------------
 Other                                  19        (22)        (3)       (32)
----------------------------------------------------------------------------
 Net changes in non-cash working                                            
  capital                               10         32         61         46 
----------------------------------------------------------------------------
Cash (used in) provided by                                                  
 investing activities                 (553)       501     (1,036)       117 
----------------------------------------------------------------------------
Financing                                                                   
----------------------------------------------------------------------------
 Short-term debt                       793       (881)       444       (816)
----------------------------------------------------------------------------
 Long-term debt issued                   -      1,000          -      1,010 
----------------------------------------------------------------------------
 Transaction costs on long-term                                             
  debt                                   -        (14)         -        (14)
----------------------------------------------------------------------------
 Repayment of long-term debt            (5)      (478)       (15)      (519)
----------------------------------------------------------------------------
 Dividends paid                       (108)       (74)      (216)      (149)
----------------------------------------------------------------------------
 Shares issued                           1          -          1          2 
----------------------------------------------------------------------------
 Shares repurchased                      -        (62)         -        (62)
----------------------------------------------------------------------------
Cash provided by (used in)                                                  
 financing activities                  681       (509)       214       (548)
----------------------------------------------------------------------------
Effect of exchange rate changes                                             
 on cash and cash equivalents          (16)       (26)       (19)       (33)
----------------------------------------------------------------------------
Increase (decrease) in cash and                                             
 cash equivalents from                                                      
 continuing operations                 149        (99)       (43)      (169)
----------------------------------------------------------------------------
Cash and cash equivalents                                                   
 provided by discontinued                                                   
 operations (note 2)                    18          8          1          5 
----------------------------------------------------------------------------
Cash and cash equivalents -                                                 
 beginning of period                   592        585        801        658 
----------------------------------------------------------------------------
Cash and cash equivalents - end                                             
 of period                             759        494        759        494 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
(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)                                
                                                                            
                                                June 30,       December 31, 
------------------------------------------------------------- --------------
                                               2014     2013           2013 
------------------------------------------------------------- --------------
Assets                                                                      
------------------------------------------------------------- --------------
 Current assets                                                             
------------------------------------------------------------- --------------
  Cash and cash equivalents                     759      494            801 
------------------------------------------------------------- --------------
  Accounts receivable                         3,542    3,845          2,105 
------------------------------------------------------------- --------------
  Income taxes receivable                         4       11             78 
------------------------------------------------------------- --------------
  Inventories                                 3,097    2,913          3,413 
------------------------------------------------------------- --------------
  Advance on acquisition of Viterra Inc.          -      762              - 
------------------------------------------------------------- --------------
  Prepaid expenses and deposits                 157      114            805 
------------------------------------------------------------- --------------
  Other current assets                          124        -            104 
------------------------------------------------------------- --------------
  Assets held for sale (note 2)                 210        -            202 
------------------------------------------------------------- --------------
                                              7,893    8,139          7,508 
------------------------------------------------------------- --------------
 Property, plant and equipment (note 7)       5,788    3,940          4,960 
------------------------------------------------------------- --------------
 Intangibles                                    712      649            738 
------------------------------------------------------------- --------------
 Goodwill                                     1,970    2,250          1,958 
------------------------------------------------------------- --------------
 Investments in associates and joint                                        
  ventures                                      627      628            639 
------------------------------------------------------------- --------------
 Other assets                                    95      120             99 
------------------------------------------------------------- --------------
 Deferred income tax assets                      75       81             75 
------------------------------------------------------------- --------------
                                             17,160   15,807         15,977 
------------------------------------------------------------- --------------
------------------------------------------------------------- --------------
Liabilities and shareholders' equity                                        
------------------------------------------------------------- --------------
 Current liabilities                                                        
------------------------------------------------------------- --------------
  Short-term debt (note 5)                    1,202      459            764 
------------------------------------------------------------- --------------
  Accounts payable                            4,263    3,615          3,985 
------------------------------------------------------------- --------------
  Income taxes payable                          179       57              2 
------------------------------------------------------------- --------------
  Current portion of long-term debt              54        -             58 
------------------------------------------------------------- --------------
  Current portion of other provisions           116       71            112 
------------------------------------------------------------- --------------
  Liabilities held for sale (note 2)             55        -             44 
------------------------------------------------------------- --------------
                                              5,869    4,202          4,965 
------------------------------------------------------------- --------------
 Long-term debt                               3,060    3,066          3,066 
------------------------------------------------------------- --------------
 Post-employment benefits                       157      177            135 
------------------------------------------------------------- --------------
 Other provisions                               416      449            426 
------------------------------------------------------------- --------------
 Other liabilities                               37       67             59 
------------------------------------------------------------- --------------
 Deferred income tax liabilities                441      517            530 
------------------------------------------------------------- --------------
                                              9,980    8,478          9,181 
------------------------------------------------------------- --------------
 Shareholders' equity                                                       
------------------------------------------------------------- --------------
  Share capital                               1,821    1,880          1,820 
------------------------------------------------------------- --------------
  Retained earnings                           5,632    5,618          5,253 
------------------------------------------------------------- --------------
  Accumulated other comprehensive loss         (276)    (170)          (279)
------------------------------------------------------------- --------------
  Equity holders of Agrium                    7,177    7,328          6,794 
------------------------------------------------------------- --------------
  Non-controlling interest                        3        1              2 
------------------------------------------------------------- --------------
                                              7,180    7,329          6,796 
------------------------------------------------------------- --------------
                                             17,160   15,807         15,977 
------------------------------------------------------------- --------------
------------------------------------------------------------- --------------
See accompanying notes.                                                     
                                                                            
                                 AGRIUM INC.                                
               Consolidated Statements of Shareholders' Equity              
                (Millions of U.S. dollars, except share data)               
                                 (Unaudited)                                
                                                                            
                                                  Other comprehensive income
                                                  --------------------------
                                                              Comprehensive 
               Millions of                                          loss of 
                    common      Share    Retained Cash flow  associates and 
                    shares    capital    earnings    hedges  joint ventures 
----------------------------------------------------------------------------
December 31,                                                                
 2012                  149      1,890       4,955         -              (3)
----------------------------------------------------------------------------
 Net earnings                                                               
  (loss)                 -          -         890         -               - 
----------------------------------------------------------------------------
 Other                                                                      
  comprehensive                                                             
  income                                                                    
  (loss), net                                                               
  of tax                                                                    
----------------------------------------------------------------------------
  Other                  -          -           -         -               1 
----------------------------------------------------------------------------
 Comprehensive                                                              
  income                                                                    
  (loss), net                                                               
  of tax                 -          -         890         -               1 
----------------------------------------------------------------------------
 Dividends               -          -        (149)        -               - 
----------------------------------------------------------------------------
 Non-                                                                       
  controlling                                                               
  interest                                                                  
  transactions           -          -         (2)         -               - 
----------------------------------------------------------------------------
 Shares                                                                     
  repurchased           (1)       (12)        (76)        -               - 
----------------------------------------------------------------------------
 Share-based                                                                
  payment                                                                   
  transactions           -          2           -         -               - 
----------------------------------------------------------------------------
June 30, 2013          148      1,880       5,618         -              (2)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
----------------------------------------------------------------------------
December 31,                                                                
 2013                  144      1,820       5,253         -              (7)
----------------------------------------------------------------------------
 Net earnings            -          -         617         -               - 
----------------------------------------------------------------------------
 Other                                                                      
  comprehensive                                                             
  income                                                                    
  (loss), net                                                               
  of tax                                                                    
----------------------------------------------------------------------------
  Post-                                                                     
   employment                                                               
   benefits              -          -         (14)        -               - 
----------------------------------------------------------------------------
  Other                  -          -           -        (3)              2 
----------------------------------------------------------------------------
 Comprehensive                                                              
  income                                                                    
  (loss), net                                                               
  of tax                 -          -         603        (3)              2 
----------------------------------------------------------------------------
 Dividends               -          -        (216)        -               - 
----------------------------------------------------------------------------
 Non-                                                                       
  controlling                                                               
  interest                                                                  
  transactions           -          -           -         -               - 
----------------------------------------------------------------------------
 Share-based                                                                
  payment                                                                   
  transactions           -          1           -         -               - 
----------------------------------------------------------------------------
 Impact of                                                                  
  adopting IFRS                                                             
  9 at January                                                              
  1, 2014                -          -          (8)        -               - 
----------------------------------------------------------------------------
June 30, 2014          144      1,821       5,632        (3)             (5)
----------------------------------------------------------------------------
----------------------------------------------------------------------------

                  Other comprehensive income                                
               --------------------------------                             
                  Available                      Equity                     
                   for sale      Foreign        holders         Non-        
                  financial     currency             of  controlling  Total 
                instruments  translation  Total  Agrium     interest equity 
----------------------------------------------------------------------------
December 31,                                                                
 2012                     -           74     71   6,916            4  6,920 
----------------------------------------------------------------------------
 Net earnings                                                               
  (loss)                  -            -      -     890           (2)   888 
----------------------------------------------------------------------------
 Other                                                                      
  comprehensive                                                             
  income                                                                    
  (loss), net                                                               
  of tax                                                                    
----------------------------------------------------------------------------
  Other                   1         (243)  (241)   (241)           -   (241)
----------------------------------------------------------------------------
 Comprehensive                                                              
  income                                                                    
  (loss), net                                                               
  of tax                  1         (243)  (241)    649           (2)   647 
----------------------------------------------------------------------------
 Dividends                -            -      -    (149)           -   (149)
----------------------------------------------------------------------------
 Non-                                                                       
  controlling                                                               
  interest                                                                  
  transactions            -            -      -      (2)          (1)    (3)
----------------------------------------------------------------------------
 Shares                                                                     
  repurchased             -            -      -     (88)           -    (88)
----------------------------------------------------------------------------
 Share-based                                                                
  payment                                                                   
  transactions            -            -      -       2            -      2 
----------------------------------------------------------------------------
June 30, 2013             1         (169)  (170)  7,328            1  7,329 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
----------------------------------------------------------------------------
December 31,                                                                
 2013                    (8)        (264)  (279)  6,794            2  6,796 
----------------------------------------------------------------------------
 Net earnings             -            -      -     617            2    619 
----------------------------------------------------------------------------
 Other                                                                      
  comprehensive                                                             
  income                                                                    
  (loss), net                                                               
  of tax                                                                    
----------------------------------------------------------------------------
  Post-                                                                     
   employment                                                               
   benefits               -            -      -     (14)           -    (14)
----------------------------------------------------------------------------
  Other                   -           (4)    (5)     (5)           -     (5)
----------------------------------------------------------------------------
 Comprehensive                                                              
  income                                                                    
  (loss), net                                                               
  of tax                  -           (4)    (5)    598            2    600 
----------------------------------------------------------------------------
 Dividends                -            -      -    (216)           -   (216)
----------------------------------------------------------------------------
 Non-                                                                       
  controlling                                                               
  interest                                                                  
  transactions            -            -      -       -           (1)    (1)
----------------------------------------------------------------------------
 Share-based                                                                
  payment                                                                   
  transactions            -            -      -       1            -      1 
----------------------------------------------------------------------------
 Impact of                                                                  
  adopting IFRS                                                             
  9 at January                                                              
  1, 2014                 8            -      8       -            -      - 
----------------------------------------------------------------------------
June 30, 2014             -         (268)  (276)  7,177            3  7,180 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
See accompanying notes.                                                     
                                                                            
                                 AGRIUM INC.                                
          Summarized Notes to the Consolidated Financial Statements         
                   For the six months ended June 30, 2014                   
             (Millions of U.S. dollars, unless otherwise stated)            
                                 (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,      
   merchandise 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;              
   -  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, ESN and other: Producing blended crop nutrients,    
      ESN®, (Environmentally Smart Nitrogen) polymer-coated nitrogen crop 
      nutrients, and micronutrients.                                        

Additional information on our operating segments is included in note 8.

Basis of preparation and statement of compliance

These consolidated interim financial statements ("interim financial statements") were approved for issuance by the Audit Committee on August 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 to our consolidated interim financial statements for the three months ended March 31, 2014.

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

Assets and liabilities held for sale and related discontinued operations consist of components of our former Advanced Technologies business unit. In July 2014, we completed the sale of the Turf and Ornamental portion of the assets held for sale for approximately $94-million. The transaction is subject to customary closing conditions and final purchase price adjustments.


                                                 Three months   Six months  
                                                   ended         ended      
Condensed information of discontinued operations  June 30,      June 30,    
----------------------------------------------------------------------------
                                                  2014   2013   2014   2013 
----------------------------------------------------------------------------
Operating information                                                       
----------------------------------------------------------------------------
Discontinued operations of assets held for sale                             
----------------------------------------------------------------------------
 Sales                                             112    108    172    176 
----------------------------------------------------------------------------
 Expenses                                          124    105    195    180 
----------------------------------------------------------------------------
 (Loss) earnings before income taxes               (12)     3    (23)    (4)
----------------------------------------------------------------------------
 Income tax recovery                                (3)     -     (5)    (2)
----------------------------------------------------------------------------
Net (loss) earnings from discontinued operations    (9)     3    (18)    (2)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Cash provided by operating activities               18      8      1      5 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
                                                                June        
Balance sheet information                                        30,        
---------------------------------------------------------------------       
                                                                2014        
---------------------------------------------------------------------       
Accounts receivable                                               80        
---------------------------------------------------------------------       
Inventories                                                       77        
---------------------------------------------------------------------       
Property, plant and equipment                                     27        
---------------------------------------------------------------------       
Intangibles                                                       26        
---------------------------------------------------------------------       
Assets held for sale                                             210        
---------------------------------------------------------------------       
---------------------------------------------------------------------       
Accounts payable                                                  55        
---------------------------------------------------------------------       
Liabilities held for sale                                         55        
---------------------------------------------------------------------       
---------------------------------------------------------------------       

3. Expenses


                                     Three months ended   Six months ended  
General and administrative                June 30,            June 30,      
----------------------------------------------------------------------------
                                         2014      2013      2014      2013 
----------------------------------------------------------------------------
Share-based payments                      (16)      (30)       15       (14)
----------------------------------------------------------------------------
Depreciation and amortization               8        12        15        27 
----------------------------------------------------------------------------
Other general and administrative           74        80       136       143 
----------------------------------------------------------------------------
                                           66        62       166       156 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
                                     Three months ended   Six months ended  
Other expenses                            June 30,            June 30,      
----------------------------------------------------------------------------
                                         2014      2013      2014      2013 
----------------------------------------------------------------------------
Realized and unrealized gain on                                             
 commodity derivatives not                                                  
 designated as hedges                       -        (1)      (32)       (9)
----------------------------------------------------------------------------
Realized and unrealized loss (gain)                                         
 on foreign exchange derivatives not                                        
 designated as hedges                      27         4        12        (9)
----------------------------------------------------------------------------
Foreign exchange (gain) loss              (29)        7       (17)       26 
----------------------------------------------------------------------------
Interest income                           (19)      (16)      (30)      (31)
----------------------------------------------------------------------------
Environmental remediation and asset                                         
 retirement obligations                    22         3        20         4 
----------------------------------------------------------------------------
Bad debt expense                           25        21        30        26 
----------------------------------------------------------------------------
Potash profit and capital tax               3         8         6        12 
----------------------------------------------------------------------------
Other                                      13        16        13        12 
----------------------------------------------------------------------------
                                           42        42         2        31 
----------------------------------------------------------------------------
----------------------------------------------------------------------------

4. Earnings per Share


                                              Three months     Six months   
                                                 ended           ended      
Attributable to equity holders of Agrium        June 30,        June 30,    
----------------------------------------------------------------------------
                                               2014    2013    2014    2013 
----------------------------------------------------------------------------
Numerator                                                                   
----------------------------------------------------------------------------
 Net earnings from continuing operations        624     746     635     892 
----------------------------------------------------------------------------
 Net loss (earnings) from discontinued                                      
  operations                                     (9)      3     (18)     (2)
----------------------------------------------------------------------------
 Net earnings                                   615     749     617     890 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Denominator (millions)                                                      
----------------------------------------------------------------------------
 Weighted average number of shares                                          
  outstanding for basic and diluted earnings                                
  per share                                     144     149     144     149 
----------------------------------------------------------------------------
----------------------------------------------------------------------------

5. Debt


                                                     June 30,   December 31,
------------------------------------------------------------- --------------
                                                         2014           2013
------------------------------------------------------------- --------------
                                   Maturity    Rate                         
------------------------------------------------------------- --------------
Short-term debt                                                             
------------------------------------------------------------- --------------
 Commercial paper                      2014    0.35       973            503
------------------------------------------------------------- --------------
 Credit facilities                             2.02       229            261
------------------------------------------------------------- --------------
                                                        1,202            764
------------------------------------------------------------- --------------
------------------------------------------------------------- --------------

6. Financial Instruments


Natural gas derivatives outstanding                 June 30,                
--------------------------------------------------------------------------- 
                                                      2014                  
--------------------------------------------------------------------------- 
                                                              Fair value of 
                                                                     assets 
                                       Notional   Maturities  (liabilities) 
--------------------------------------------------------------------------- 
Not designated as hedges                                                    
--------------------------------------------------------------------------- 
 AECO Swaps (millions MMBtu)                  1         2014              - 
--------------------------------------------------------------------------- 
Designated as hedges                                                        
----------------------------------------------------------------------------
 AECO Swaps (millions MMBtu)                 51  2015 - 2018              8 
--------------------------------------------------------------------------- 
                                             52                           8 
--------------------------------------------------------------------------- 
--------------------------------------------------------------------------- 

Natural gas derivatives outstanding               December 31,             
---------------------------------------------------------------------------
                                                      2013                 
---------------------------------------------------------------------------
                                                              Fair value of
                                                                     assets
                                       Notional   Maturities  (liabilities)
---------------------------------------------------------------------------
Not designated as hedges                                                   
---------------------------------------------------------------------------
 AECO Swaps (millions MMBtu)                  8         2014              -
---------------------------------------------------------------------------
Designated as hedges                                                       
---------------------------------------------------------------------------
 AECO Swaps (millions MMBtu)                  -            -              -
---------------------------------------------------------------------------
                                              8                           -
---------------------------------------------------------------------------
---------------------------------------------------------------------------

We hold all derivative financial instruments for risk management purposes only. In addition to the natural gas derivatives listed above, we hold foreign exchange derivative contracts not designated as hedges. The fair value of foreign exchange derivatives at June 30, 2014 was a net liability of $7-million (December 31, 2013 - net liability of $1-million).


                                                        Fair value          
                                              ------------------------------
Maturities of natural gas derivative contracts  2015  2016  2017  2018  2019
----------------------------------------------------------------------------
Designated as hedges                               1     2     2     3     -
----------------------------------------------------------------------------
                                                   1     2     2     3     -
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
Natural gas derivatives                                                     
 outstanding                    June 30,                 December 31,       
------------------------------------------------- --------------------------
                                  2014                       2013           
------------------------------------------------- --------------------------
                                                                            
Balance sheet            Gross           Carrying   Gross           Carrying
 presentation           amount  Netting    amount  amount  Netting    amount
------------------------------------------------- --------------------------
 Not designated as                                                          
  hedges                                                                    
------------------------------------------------- --------------------------
  Accounts receivable        4       (4)        -      26      (26)        -
------------------------------------------------- --------------------------
  Accounts payable          (4)       4         -     (26)      26         -
------------------------------------------------- --------------------------
 Designated as hedges                                                       
------------------------------------------------- --------------------------
  Other assets             195     (187)        8       -        -         -
------------------------------------------------- --------------------------
  Other liabilities       (187)     187         -       -        -         -
------------------------------------------------- --------------------------
                             8        -         8       -        -         -
------------------------------------------------- --------------------------
------------------------------------------------- --------------------------
                                                                            
Impact of change in fair value of natural gas                               
 derivative financial instruments                  June 30,    December 31, 
------------------------------------------------------------ ---------------
                                                       2014            2013 
------------------------------------------------------------ ---------------
A $10-million increase in net earnings requires                             
 an increase in gas prices per MMBtu                   0.26            1.87 
------------------------------------------------------------ ---------------
A $10-million decrease in net earnings requires a                           
 decrease in gas prices per MMBtu                     (0.26)          (1.87)
------------------------------------------------------------ ---------------
------------------------------------------------------------ ---------------

Commodity price risk management and cash flow hedges

Natural gas is a significant component of our cost of product sold for nitrogen-based fertilizers. We use physical contracts and financial forward contracts to manage the risk of market fluctuations in natural gas prices and to reduce the variability of cash flows from our planned purchases of natural gas used in our fertilizer production facilities. Our Board of Directors has established limits on risk management activities, including the following:


Use of derivatives to hedge exposure to natural gas market prices risk      
----------------------------------------------------------------------------
Term (gas year - twelve months ending                                       
 October 31)                                2014   2015   2016   2017   2018
----------------------------------------------------------------------------
Maximum allowable (% of forecasted gas                                      
 requirements)                                75     75     75  25(1)  25(1)
----------------------------------------------------------------------------
Forecasted average monthly purchases                                        
 (millions MMBtu)                              -      -      9      9      9
----------------------------------------------------------------------------
Gas requirements hedged using derivatives                                   
 designated as hedges (%)                      -      -     17     17     17
----------------------------------------------------------------------------
----------------------------------------------------------------------------
(1) Maximum monthly hedged volume may not exceed 90 percent of planned      
    monthly requirements.                                                   

During the three months ended June 30, 2014, we designated natural gas forward contracts as hedges of highly probable purchases of natural gas. The contracts settle in the months hedged, using AECO futures price indexes, which we use to determine fair value. The contracts are denominated in Canadian dollars for purchases of gas in Canadian dollars. We forecast that the contracted purchases and related delivery of natural gas will occur beginning November 2015 until October 2018. At the inception of each designated forward contract, we prepare formal designation and documentation of the hedging relationship and our risk management objective and strategy for undertaking the hedge. Documentation includes identification of the hedging instrument, the hedged item, the nature of the risk being hedged and how we will assess whether the hedging relationship meets the hedge effectiveness requirements, including our analysis of the sources of hedge ineffectiveness and how we determine the hedge ratio. For derivatives designated as hedges, we record the effective portion of changes in fair value to other comprehensive income. We record any ineffective portion to earnings.

The underlying risk of the forward contracts is identical to the hedged risk, and accordingly we have established a ratio of 1:1 for all natural gas hedges. Due to a strong correlation between AECO future contract prices and our delivered cost, we did not experience any ineffectiveness on our hedges, and accordingly we have recorded the full change in the fair value of the natural gas forward contracts designated as hedges to other comprehensive income.

We use quoted market prices from AECO to determine the fair value of natural gas derivatives. If these market prices are adjusted by a forward yield curve, we classify the fair value of the financial instruments within Level 2.


                                                         June 30,           
                                              ------------------------------
                                                           2014             
                                              ------------------------------
                                                   Fair value               
                                              --------------------          
                                                                            
Classification of financial instruments                             Carrying
 measured at fair value                          Level 1   Level 2     value
----------------------------------------------------------------------------
Accounts receivable - derivatives                      1         -         1
----------------------------------------------------------------------------
Other current financial assets - marketable                                 
 securities                                           19        89       108
----------------------------------------------------------------------------
Other financial assets - derivatives                   8         -         8
----------------------------------------------------------------------------
Accounts payable - derivatives                         8         -         8
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Classification of fair value of long-term debt                              
----------------------------------------------------------------------------
 Debentures                                            -     3,355     2,990
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
                                                       December 31,         
                                              ------------------------------
                                                           2013             
                                              ------------------------------
                                                   Fair value       Carrying
                                              --------------------          
Classification of financial instruments                                     
 measured at fair value                          Level 1   Level 2     value
----------------------------------------------------------------------------
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 or six months ended June 30, 2014 or June 30, 2013. We do not measure any of our financial instruments using Level 3 inputs.

7. Additional Information

Property, plant and equipment

During the six months ended June 30, 2014, we added $652-million to assets under construction at our Vanscoy Potash facility.

Dividends


                                  June 30,                                  
----------------------------------------------------------------------------
                                    2014                                    
----------------------------------------------------------------------------
               Declared                                                     
-----------------------------------------------                             
                                                            Paid to         
Effective                    Per share    Total        Shareholders    Total
----------------------------------------------------------------------------
December 12, 2013                 0.75      108    January 16, 2014      108
----------------------------------------------------------------------------
February 21, 2014                 0.75      108      April 17, 2014      108
----------------------------------------------------------------------------
May 7, 2014                       0.75      108       July 17, 2014       NA
----------------------------------------------------------------------------
----------------------------------------------------------------------------

8. Operating Segments


                                     Three months ended   Six months ended  
                                          June 30,            June 30,      
----------------------------------------------------------------------------
Segment operations                       2014      2013      2014      2013 
----------------------------------------------------------------------------
Sales                                                                       
----------------------------------------------------------------------------
 Retail                                                                     
----------------------------------------------------------------------------
  North America                         5,513     4,660     7,234     6,250 
----------------------------------------------------------------------------
  International                           884       903     1,395     1,452 
----------------------------------------------------------------------------
 Total Retail                           6,397     5,563     8,629     7,702 
----------------------------------------------------------------------------
 Wholesale                                                                  
----------------------------------------------------------------------------
  Nitrogen                                421       641       757     1,023 
----------------------------------------------------------------------------
  Potash                                  175       212       303       364 
----------------------------------------------------------------------------
  Phosphate                               161       211       328       373 
----------------------------------------------------------------------------
  Product purchased for resale            285       329       579       681 
----------------------------------------------------------------------------
  Ammonium sulfate, ESN and other         170       201       306       345 
----------------------------------------------------------------------------
 Total Wholesale                        1,212     1,594     2,273     2,786 
----------------------------------------------------------------------------
 Other                                   (271)     (249)     (485)     (424)
----------------------------------------------------------------------------
                                        7,338     6,908    10,417    10,064 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Inter-segment sales                                                         
----------------------------------------------------------------------------
 Retail                                     5         7        10        11 
----------------------------------------------------------------------------
 Wholesale                                266       242       475       413 
----------------------------------------------------------------------------
                                          271       249       485       424 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Earnings before income taxes                                                
----------------------------------------------------------------------------
 Retail                                                                     
----------------------------------------------------------------------------
  North America                           673       550       591       527 
----------------------------------------------------------------------------
  International                            41        12        68         7 
----------------------------------------------------------------------------
 Total Retail                             714       562       659       534 
----------------------------------------------------------------------------
 Wholesale                                                                  
----------------------------------------------------------------------------
  Nitrogen                                101       294       191       467 
----------------------------------------------------------------------------
  Potash                                   72       120       118       204 
----------------------------------------------------------------------------
  Phosphate                                 6        27         8        64 
----------------------------------------------------------------------------
  Product purchased for resale             12         8        16        14 
----------------------------------------------------------------------------
  Ammonium sulfate, ESN and other          36        54        65        97 
----------------------------------------------------------------------------
                                          227       503       398       846 
----------------------------------------------------------------------------
  Unallocated expenses                     36        38        29        47 
----------------------------------------------------------------------------
 Total Wholesale                          191       465       369       799 
----------------------------------------------------------------------------
 Other                                    (10)       37       (80)      (30)
----------------------------------------------------------------------------
 Earnings before finance costs and                                          
  income taxes                            895     1,064       948     1,303 
----------------------------------------------------------------------------
 Finance costs related to long-term                                         
  debt                                      9        21        28        43 
----------------------------------------------------------------------------
 Other finance costs                       18        21        35        39 
----------------------------------------------------------------------------
Earnings before income taxes              868     1,022       885     1,221 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
                                     Three months ended   Six months ended  
                                          June 30,            June 30,      
----------------------------------------------------------------------------
                                         2014      2013      2014      2013 
----------------------------------------------------------------------------
Retail sales                                                                
----------------------------------------------------------------------------
 Crop nutrients                         2,708     2,485     3,604     3,287 
----------------------------------------------------------------------------
 Crop protection products               2,199     1,848     2,929     2,634 
----------------------------------------------------------------------------
 Seed                                   1,038       809     1,336     1,094 
----------------------------------------------------------------------------
 Merchandise                              218       142       404       262 
----------------------------------------------------------------------------
 Services and other                       234       279       356       425 
----------------------------------------------------------------------------
                                        6,397     5,563     8,629     7,702 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
                                 AGRIUM INC.                                
                         Supplemental Information 1a                        
                          Results by Business Unit                          
                         (Millions of U.S. dollars)                         
                                 (Unaudited)                                
                                                                            
                                            Three months ended June 30,     
----------------------------------------------------------------------------
                                                        2014                
----------------------------------------------------------------------------
                                         Retail   Wholesale   Other   Total 
----------------------------------------------------------------------------
Sales - external                          6,392         946       -   7,338 
      - inter-segment                         5         266    (271)      - 
----------------------------------------------------------------------------
Total sales                               6,397       1,212    (271)  7,338 
Cost of product sold                      5,048         985    (294)  5,739 
----------------------------------------------------------------------------
Gross profit                              1,349         227      23   1,599 
----------------------------------------------------------------------------
Gross profit (%)                             21          19              22 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Selling                                     603          10      (4)    609 
General and administrative                   35          13      18      66 
(Earnings) loss from associates and                                         
 joint ventures                              (4)        (10)      1     (13)
Other expenses                                1          23      18      42 
----------------------------------------------------------------------------
EBIT (1)                                    714         191     (10)    895 
EBITDA (2)                                  791         252      (6)  1,037 
Adjusted EBITDA (2)                         791         263      (6)  1,048 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
                                            Three months ended June 30,     
----------------------------------------------------------------------------
                                                        2013                
----------------------------------------------------------------------------
                                                  Wholesale   Other   Total 
                                         Retail         (3)     (4)     (4) 
----------------------------------------------------------------------------
Sales - external                          5,556       1,352       -   6,908 
      - inter-segment                         7         242    (249)      - 
----------------------------------------------------------------------------
Total sales                               5,563       1,594    (249)  6,908 
Cost of product sold                      4,421       1,091    (303)  5,209 
----------------------------------------------------------------------------
Gross profit                              1,142         503      54   1,699 
----------------------------------------------------------------------------
Gross profit (%)                             21          32              25 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Selling                                     538           9      (1)    546 
General and administrative                   31          26       5      62 
Earnings from associates and joint                                          
 ventures                                    (3)        (12)      -     (15)
Other expenses                               14          15      13      42 
----------------------------------------------------------------------------
EBIT (1)                                    562         465      37   1,064 
EBITDA (2)                                  619         534      38   1,191 
Adjusted EBITDA (2)                         619         542      38   1,199 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
(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 1b                        
                          Results by Business Unit                          
                         (Millions of U.S. dollars)                         
                                 (Unaudited)                                
                                                                            
                                             Six months ended June 30,      
----------------------------------------------------------------------------
                                                        2014                
----------------------------------------------------------------------------
                                         Retail   Wholesale   Other   Total 
----------------------------------------------------------------------------
Sales - external                          8,619       1,798       -  10,417 
      - inter-segment                        10         475    (485)      - 
----------------------------------------------------------------------------
Total sales                               8,629       2,273    (485) 10,417 
Cost of product sold                      6,893       1,875    (506)  8,262 
----------------------------------------------------------------------------
Gross profit                              1,736         398      21   2,155 
----------------------------------------------------------------------------
Gross profit (%)                             20          18              21 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Selling                                   1,039          21      (7)  1,053 
General and administrative                   63          23      80     166 
(Earnings) loss from associates and                                         
 joint ventures                              (5)        (10)      1     (14)
Other (income) expenses                     (20)         (5)     27       2 
----------------------------------------------------------------------------
EBIT (1)                                    659         369     (80)    948 
EBITDA (2)                                  808         483     (74)  1,217 
Adjusted EBITDA (2)                         808         500     (74)  1,234 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
                                             Six months ended June 30,      
----------------------------------------------------------------------------
                                                        2013                
----------------------------------------------------------------------------
                                                  Wholesale   Other   Total 
                                         Retail         (3)     (4)     (4) 
----------------------------------------------------------------------------
Sales - external                          7,691       2,373       -  10,064 
      - inter-segment                        11         413    (424)      - 
----------------------------------------------------------------------------
Total sales                               7,702       2,786    (424) 10,064 
Cost of product sold                      6,184       1,940    (464)  7,660 
----------------------------------------------------------------------------
Gross profit                              1,518         846      40   2,404 
----------------------------------------------------------------------------
Gross profit (%)                             20          30              24 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Selling                                     927          20      (5)    942 
General and administrative                   56          46      54     156 
(Earnings) loss from associates and                                         
 joint ventures                              (4)        (25)      1     (28)
Other expenses                                5           6      20      31 
----------------------------------------------------------------------------
EBIT (1)                                    534         799     (30)  1,303 
EBITDA (2)                                  644         918     (24)  1,538 
Adjusted EBITDA (2)                         644         935     (24)  1,555 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
(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 June 30,             
-------------------------------------------------------------------------- 
                                  2014                     2013            
------------------------------------------------ ------------------------- 
                                Cost of                   Cost of          
                                product   Gross           product   Gross  
                        Sales  sold (1)  profit   Sales  sold (1)  profit  
------------------------------------------------ ------------------------- 
                                                                           
Retail (2)                                                                 
 Crop nutrients         2,708     2,203     505   2,485     2,061     424  
 Crop protection                                                           
  products              2,199     1,742     457   1,848     1,442     406  
 Seed                   1,038       842     196     809       669     140  
 Merchandise              218       194      24     142       119      23  
 Services and other       234        67     167     279       130     149  
------------------------------------------------ ------------------------- 
                        6,397     5,048   1,349   5,563     4,421   1,142  
------------------------------------------------ ------------------------- 
Wholesale (3)                                                              
 Nitrogen                 421       320     101     641       347     294  
 Potash                   175       103      72     212        92     120  
 Phosphate                161       155       6     211       184      27  
 Product purchased for                                                     
  resale                  285       273      12     329       321       8  
 Ammonium sulfate, ESN                                                     
  and other               170       134      36     201       147      54  
------------------------------------------------ ------------------------- 
                        1,212       985     227   1,594     1,091     503  
------------------------------------------------ ------------------------- 
Other inter-segment                                                        
 eliminations (4)        (271)     (294)     23    (249)     (303)     54  
------------------------------------------------ ------------------------- 
Total (4)               7,338     5,739   1,599   6,908     5,209   1,699  
------------------------------------------------ ------------------------- 
------------------------------------------------ ------------------------- 
                                                                           
Wholesale equity                                                           
 accounted joint                                                           
 ventures:                                                                 
 Nitrogen                  49        35      14      50        36      14  
 Product purchased for                                                     
  resale                   17        16       1      32        30       2  
------------------------------------------------ ------------------------- 
                           66        51      15      82        66      16  
------------------------------------------------ ------------------------- 
Total Wholesale                                                            
 including equity                                                          
accounted joint                                                            
 ventures (3)           1,278     1,036     242   1,676     1,157     519  
------------------------------------------------ ------------------------- 
------------------------------------------------ ------------------------- 

                                 AGRIUM INC.                                
                         Supplemental Information 2                         
                                Product Lines                               
                         (Millions of U.S. dollars)                         
                                 (Unaudited)                                
                                                                            
                                     Six months ended June 30,              
----------------------------------------------------------------------------
                                  2014                       2013           
------------------------------------------------- --------------------------
                                 Cost of                    Cost of         
                                 product   Gross            product   Gross 
                         Sales  sold (1)  profit    Sales  sold (1)  profit 
------------------------------------------------- --------------------------
                                                                            
Retail (2)                                                                  
 Crop nutrients          3,604     2,971     633    3,287     2,742     545 
 Crop protection                                                            
  products               2,929     2,367     562    2,634     2,100     534 
 Seed                    1,336     1,094     242    1,094       910     184 
 Merchandise               404       356      48      262       217      45 
 Services and other        356       105     251      425       215     210 
------------------------------------------------- --------------------------
                         8,629     6,893   1,736    7,702     6,184   1,518 
------------------------------------------------- --------------------------
Wholesale (3)                                                               
 Nitrogen                  757       566     191    1,023       556     467 
 Potash                    303       185     118      364       160     204 
 Phosphate                 328       320       8      373       309      64 
 Product purchased for                                                      
  resale                   579       563      16      681       667      14 
 Ammonium sulfate, ESN                                                      
  and other                306       241      65      345       248      97 
------------------------------------------------- --------------------------
                         2,273     1,875     398    2,786     1,940     846 
------------------------------------------------- --------------------------
Other inter-segment                                                         
 eliminations (4)         (485)     (506)     21     (424)     (464)     40 
------------------------------------------------- --------------------------
Total (4)               10,417     8,262   2,155   10,064     7,660   2,404 
------------------------------------------------- --------------------------
------------------------------------------------- --------------------------
                                                                            
Wholesale equity                                                            
 accounted joint                                                            
 ventures:                                                                  
 Nitrogen                   76        53      23       89        60      29 
 Product purchased for                                                      
  resale                    38        36       2       63        60       3 
------------------------------------------------- --------------------------
                           114        89      25      152       120      32 
------------------------------------------------- --------------------------
Total Wholesale                                                             
 including equity                                                           
accounted joint                                                             
 ventures (3)            2,387     1,964     423    2,938     2,060     878 
------------------------------------------------- --------------------------
------------------------------------------------- --------------------------
(1) Includes depreciation and amortization.                                 
(2) International Retail sales were $884-million (2013 - $903-million) and  
    gross profit was $149-million (2013 - $131-million) for the three months
    ended June 30. International Retail sales were $1,395-million (2013 -   
    $1,452-million) and gross profit was $253-million (2013 - $228-million) 
    for the six months ended June 30.                                       
(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 3a                        
                      Selected Volumes and Sales Prices                     
                                 (Unaudited)                                
                                                                            
                                         Three months ended June 30,        
----------------------------------------------------------------------------
                                                    2014                    
--------------------------------------------------------------------------- 
                                                         Cost of            
                                     Sales    Selling    product            
                                    tonnes      price       sold     Margin 
                                   (000's)  ($/tonne)  ($/tonne)  ($/tonne) 
--------------------------------------------------------------------------- 
Retail                                                                      
 Crop nutrients                                                             
  North America                      4,161        558                       
  International                        758        512                       
--------------------------------------------------------------------------- 
 Total crop nutrients                4,919        551        448        103 
--------------------------------------------------------------------------- 
--------------------------------------------------------------------------- 
Wholesale (1)                                                               
 Nitrogen                                                                   
  North America                                                             
   Ammonia                             323        577                       
   Urea                                243        474                       
   Other                               340        351                       
--------------------------------------------------------------------------- 
 Total nitrogen                        906        464        353        111 
--------------------------------------------------------------------------- 
                                                                            
 Potash                                                                     
  North America                        372        358                       
  International                        194        218                       
--------------------------------------------------------------------------- 
 Total potash                          566        310        182        128 
--------------------------------------------------------------------------- 
                                                                            
 Phosphate                             268        598        576         22 
 Product purchased for resale          683        418        400         18 
 Ammonium sulfate                      106        360        169        191 
 ESN and Other                         251                                  
--------------------------------------------------------------------------- 
                                                                            
Total Wholesale                      2,780        436        354         82 
--------------------------------------------------------------------------- 
--------------------------------------------------------------------------- 
                                                                            
Wholesale equity accounted joint                                            
 ventures:                                                                  
 Nitrogen                              147        336        244         92 
 Product purchased for resale           90        188        171         17 
--------------------------------------------------------------------------- 
                                       237        280        216         64 
--------------------------------------------------------------------------- 
Total Wholesale including joint                                             
 ventures (1)                        3,017        424        344         80 
--------------------------------------------------------------------------- 
--------------------------------------------------------------------------- 

                                AGRIUM INC.                                
                        Supplemental Information 3a                        
                     Selected Volumes and Sales Prices                     
                                (Unaudited)                                
                                                                           
                                         Three months ended June 30,       
---------------------------------------------------------------------------
                                                    2013                   
---------------------------------------------------------------------------
                                                         Cost of           
                                     Sales    Selling    product           
                                    tonnes      price       sold     Margin
                                   (000's)  ($/tonne)  ($/tonne)  ($/tonne)
---------------------------------------------------------------------------
Retail                                                                     
 Crop nutrients                                                            
  North America                      3,407        616                      
  International                        684        566                      
---------------------------------------------------------------------------
 Total crop nutrients                4,091        607        504        103
---------------------------------------------------------------------------
---------------------------------------------------------------------------
Wholesale (1)                                                              
 Nitrogen                                                                  
  North America                                                            
   Ammonia                             419        743                      
   Urea                                377        547                      
   Other                               307        406                      
---------------------------------------------------------------------------
 Total nitrogen                      1,103        582        315        267
---------------------------------------------------------------------------
                                                                           
 Potash                                                                    
  North America                        243        470                      
  International                        301        324                      
---------------------------------------------------------------------------
 Total potash                          544        389        168        221
---------------------------------------------------------------------------
                                                                           
 Phosphate                             317        667        584         83
 Product purchased for resale          710        462        451         11
 Ammonium sulfate                       98        451        198        253
 ESN and Other                         242                                 
---------------------------------------------------------------------------
                                                                           
Total Wholesale                      3,014        529        362        167
---------------------------------------------------------------------------
---------------------------------------------------------------------------
                                                                           
Wholesale equity accounted joint                                           
 ventures:                                                                 
 Nitrogen                              110        455        328        127
 Product purchased for resale           84        381        357         24
---------------------------------------------------------------------------
                                       194        423        341         82
---------------------------------------------------------------------------
Total Wholesale including joint                                            
 ventures (1)                        3,208        522        360        162
---------------------------------------------------------------------------
---------------------------------------------------------------------------
(1) Restated for the results of ESN and Micronutrients businesses that have 
    transitioned to our Wholesale business unit.                            
                                                                            
                                 AGRIUM INC.                                
                         Supplemental Information 3b                        
                      Selected Volumes and Sales Prices                     
                                 (Unaudited)                                
                                                                            
                                          Six months ended June 30,         
----------------------------------------------------------------------------
                                                    2014                    
--------------------------------------------------------------------------- 
                                                         Cost of            
                                     Sales    Selling    product            
                                    tonnes      price       sold     Margin 
                                   (000's)  ($/tonne)  ($/tonne)  ($/tonne) 
--------------------------------------------------------------------------- 
Retail                                                                      
 Crop nutrients                                                             
  North America                      5,561        544                       
  International                      1,184        491                       
--------------------------------------------------------------------------- 
 Total crop nutrients                6,745        534        440         94 
--------------------------------------------------------------------------- 
--------------------------------------------------------------------------- 
Wholesale (1)                                                               
 Nitrogen                                                                   
  North America                                                             
   Ammonia                             502        549                       
   Urea                                625        454                       
   Other                               571        346                       
--------------------------------------------------------------------------- 
 Total nitrogen                      1,698        446        334        112 
--------------------------------------------------------------------------- 
                                                                            
 Potash                                                                     
  North America                        664        351                       
  International                        330        213                       
--------------------------------------------------------------------------- 
 Total potash                          994        305        186        119 
--------------------------------------------------------------------------- 
                                                                            
 Phosphate                             576        569        555         14 
 Product purchased for resale        1,488        389        378         11 
 Ammonium sulfate                      198        335        171        164 
 ESN and Other                         462                                  
--------------------------------------------------------------------------- 
                                                                            
Total Wholesale                      5,416        420        347         73 
--------------------------------------------------------------------------- 
--------------------------------------------------------------------------- 
                                                                            
Wholesale equity accounted joint                                            
 ventures:                                                                  
 Nitrogen                              209        365        256        109 
 Product purchased for resale          154        246        232         14 
--------------------------------------------------------------------------- 
                                       363        315        246         69 
--------------------------------------------------------------------------- 
Total Wholesale including joint                                             
 ventures (1)                        5,779        413        340         73 
--------------------------------------------------------------------------- 
--------------------------------------------------------------------------- 

                                AGRIUM INC.                                
                        Supplemental Information 3b                        
                     Selected Volumes and Sales Prices                     
                                (Unaudited)                                
                                                                           
                                          Six months ended June 30,        
---------------------------------------------------------------------------
                                                    2013                   
---------------------------------------------------------------------------
                                                         Cost of           
                                     Sales    Selling    product           
                                    tonnes      price       sold     Margin
                                   (000's)  ($/tonne)  ($/tonne)  ($/tonne)
---------------------------------------------------------------------------
Retail                                                                     
 Crop nutrients                                                            
  North America                      4,468        607                      
  International                      1,031        557                      
---------------------------------------------------------------------------
 Total crop nutrients                5,499        598        499         99
---------------------------------------------------------------------------
---------------------------------------------------------------------------
Wholesale (1)                                                              
 Nitrogen                                                                  
  North America                                                            
   Ammonia                             612        700                      
   Urea                                699        545                      
   Other                               538        397                      
---------------------------------------------------------------------------
 Total nitrogen                      1,849        553        301        252
---------------------------------------------------------------------------
                                                                           
 Potash                                                                    
  North America                        441        471                      
  International                        481        325                      
---------------------------------------------------------------------------
 Total potash                          922        395        174        221
---------------------------------------------------------------------------
                                                                           
 Phosphate                             549        680        564        116
 Product purchased for resale        1,473        462        453          9
 Ammonium sulfate                      170        444        193        251
 ESN and Other                         429                                 
---------------------------------------------------------------------------
                                                                           
Total Wholesale                      5,392        517        360        157
---------------------------------------------------------------------------
---------------------------------------------------------------------------
                                                                           
Wholesale equity accounted joint                                           
 ventures:                                                                 
 Nitrogen                              188        473        319        154
 Product purchased for resale          163        387        369         18
---------------------------------------------------------------------------
                                       351        433        342         91
---------------------------------------------------------------------------
Total Wholesale including joint                                            
 ventures (1)                        5,743        512        359        153
---------------------------------------------------------------------------
---------------------------------------------------------------------------
(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 June 30,       
----------------------------------------------------------------------------
                                                     2014                   
--------------------------------------------------------------------------- 
                                    Cost of                  General        
                                    product                      and        
                                       sold  Selling  administrative  Total 
--------------------------------------------------------------------------- 
                                                                            
Retail                                    2       72               3     77 
Wholesale (1)                                                               
 Nitrogen                                22                                 
 Potash                                  18                                 
 Phosphate                               13                                 
 Product purchased for resale             1                                 
 Ammonium sulfate, ESN and other          6                                 
--------------------------------------------------------------------------- 
                                         60        -               1     61 
Other                                     -        -               4      4 
--------------------------------------------------------------------------- 
Total (2)                                62       72               8    142 
--------------------------------------------------------------------------- 
--------------------------------------------------------------------------- 
                                                                            

                                                                           
                                         Three months ended June 30,       
---------------------------------------------------------------------------
                                                     2013                  
---------------------------------------------------------------------------
                                    Cost of                  General       
                                    product                      and       
                                       sold  Selling  administrative  Total
---------------------------------------------------------------------------
                                                                           
Retail                                    2       52               3     57
Wholesale (1)                                                              
 Nitrogen                                21                                
 Potash                                  17                                
 Phosphate                               17                                
 Product purchased for resale             -                                
 Ammonium sulfate, ESN and other          6                                
---------------------------------------------------------------------------
                                         61        -               8     69
Other                                     -        -               1      1
---------------------------------------------------------------------------
Total (2)                                63       52              12    127
---------------------------------------------------------------------------
---------------------------------------------------------------------------
                                                                           
                                           Six months ended June 30,        
----------------------------------------------------------------------------
                                                     2014                   
--------------------------------------------------------------------------- 
                                    Cost of                  General        
                                    product                      and        
                                       sold  Selling  administrative  Total 
--------------------------------------------------------------------------- 
                                                                            
Retail                                    3      140               6    149 
Wholesale (1)                                                               
 Nitrogen                                42                                 
 Potash                                  31                                 
 Phosphate                               26                                 
 Product purchased for resale             1                                 
 Ammonium sulfate, ESN and other         11                                 
--------------------------------------------------------------------------- 
                                        111        -               3    114 
Other                                     -        -               6      6 
--------------------------------------------------------------------------- 
Total (2)                               114      140              15    269 
--------------------------------------------------------------------------- 
--------------------------------------------------------------------------- 

                                          Six months ended June 30,        
---------------------------------------------------------------------------
                                                     2013                  
---------------------------------------------------------------------------
                                    Cost of                  General       
                                    product                      and       
                                       sold  Selling  administrative  Total
---------------------------------------------------------------------------
                                                                           
Retail                                    3      101               6    110
Wholesale (1)                                                              
 Nitrogen                                36                                
 Potash                                  28                                
 Phosphate                               31                                
 Product purchased for resale             -                                
 Ammonium sulfate, ESN and other          9                                
---------------------------------------------------------------------------
                                        104        -              15    119
Other                                     -        -               6      6
---------------------------------------------------------------------------
Total (2)                               107      101              27    235
---------------------------------------------------------------------------
---------------------------------------------------------------------------
(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)                                
                                                                            
Retail and consolidated                                                     
 Agrium measures                  Rolling four quarters ended June 30,      
----------------------------------------------------------------------------
                                     2014                     2013          
--------------------------------------------------- ------------------------
                                       Consolidated             Consolidated
                              Retail         Agrium    Retail     Agrium (2)
--------------------------------------------------- ------------------------
Return on operating capital                                                 
 employed (%) (3a)                19             11        15             21
Return on capital employed                                                  
 (%) (3b)                         11              9         8             15
Average non-cash working                                                    
 capital to sales (%)             17             14        20             17
Operating coverage ratio                                                    
 (%) (3c)                         69             64        72             50
EBITDA to sales (%) (3d)           9             11         8             16
                                                                            
                                                June 30,                    
----------------------------------------------------------------------------
                                     2014                     2013          
--------------------------------------------------- ------------------------
                                       Consolidated             Consolidated
                              Retail         Agrium    Retail         Agrium
--------------------------------------------------- ------------------------
Non-cash working capital       2,562          2,242     2,737          3,140
                                                                            
Retail comparable store                                                     
 measures                              Six months ended June 30,            
----------------------------------------------------------------------------
                                2014                     2013               
-------------------------------------               ----------              
                              Retail                   Retail               
-------------------------------------               ----------              
Comparable store sales (%)        (3)                      (3)              
Normalized comparable store                                                 
 sales (%)                         -                        1               
                                                                            
Retail North America                                                        
 measures                         Rolling four quarters ended June 30,      
----------------------------------------------------------------------------
                                2014                     2013               
-------------------------------------               ----------              
                              Retail                   Retail               
-------------------------------------               ----------              
Return on operating capital                                                 
 employed (%) (3a)                29                       21               
Return on capital employed                                                  
 (%) (3b)                         15                       10               
EBITDA to sales (%) (3d)          12                        9               
                                                                            
Wholesale production tonnes Three months ended June   Six months ended June 
 (000's)                              30,                      30,          
----------------------------------------------------------------------------
                                2014           2013      2014           2013
--------------------------------------------------- ------------------------
Ammonia (gross)                  525            592     1,134          1,259
Urea (gross)                     292            352       751            808
Monoammonium phosphate           146            150       299            317
Potash                           479            449       902            910
                                                                            
(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 19%, Retail - North America 21%, Consolidated Agrium 11%.    
    (b) Retail 10%, Retail - North America 11%, Consolidated Agrium 8%.     
    (c) Retail 70%, Consolidated Agrium 65%.                                
    (d) Retail 9%, Retail - North America 10%, Consolidated Agrium 11%.     
                                                                            
                                 AGRIUM INC.                                
                       Supplemental Information 6 (1)                       
               Accompanying Notes to Supplemental Information               
                                                                            
----------------------------------------------------------------------------
----------------------------------------------------------------------------
 IFRS Financial                                                             
     Measure                             Definition                         
----------------------------------------------------------------------------
Average non-    Rolling four quarter average non-cash working capital       
 cash working   divided by sales.                                           
 capital to                                                                 
 sales (2)                                                                  
Operating       Gross profit less earnings (loss) from continuing operations
 coverage ratio before finance costs and income taxes, divided by gross     
 (2)            profit.                                                     
Non-cash        Current assets less current liabilities, excluding cash and 
 working        cash equivalents, other current assets, short-term debt,    
 capital (2)    current portion of long-term debt and current assets and    
                liabilities held for sale.                                  
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                          Usefulness of     
                                                      Additional or Non-IFRS
                             Definition                 Financial Measure   
----------------------------------------------------------------------------
Additional IFRS Financial Measure (As defined in                            
 Canadian Securities Administrators' Staff Notice                           
 52-306 (Revised))                                                          
----------------------------------------------------------------------------
EBIT            Earnings (loss) from continuing      Used to measure        
                operations before finance costs and  operating performance  
                income taxes.                        exclusive of capital   
                                                     structure and income   
                                                     taxes.                 
Return on       Last 12 months' EBIT less income     Used to measure        
 operating      taxes at a tax rate of 27 percent    operating performance  
 capital        (2013 - 27 percent) divided by       and efficiency of our  
 employed (2)   rolling four quarter average         capital allocation     
                operating capital employed.          process.               
                Operating capital employed includes                         
                non-cash working capital, property,                         
                plant and equipment, investments in                         
                associates and joint ventures and                           
                other assets.                                               
Return on       Last 12 months' EBIT less income     Used to measure        
 capital        taxes at a tax rate of 27 percent    operating performance  
 employed (2)   (2013 - 27 percent) divided by       and efficiency of our  
                rolling four quarter average capital capital allocation     
                employed. Capital employed includes  process.               
                operating capital employed,                                 
                intangibles and goodwill.                                   
----------------------------------------------------------------------------
Non-IFRS Financial Measure                                                  
----------------------------------------------------------------------------
EBITDA          Earnings (loss) from continuing      Refer to EBIT. Also    
                operations before finance costs,     used as a valuation    
                income taxes, depreciation and       metric and as an       
                amortization.                        alternative to cash    
                                                     provided by operating  
                                                     activities.            
Adjusted EBITDA EBITDA before finance costs, income  Refer to EBIT and      
                taxes, depreciation and amortization EBITDA. Provides useful
                of joint ventures.                   information on our     
                                                     profitability by adding
                                                     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.       
Comparable      We include a location in the         Used to measure the    
 store sales    comparable store base once it is in  performance of our     
                operation or owned for over 12       existing stores by     
                months. If we close a store, we      measuring the change in
                retain the sales of the closed       sales for such stores  
                location in the comparable store     over the comparable    
                base if the closed location is in    period.                
                close geographical proximity to an                          
                existing location, unless we plan to                        
                exit the market area or are unable                          
                to economically or logistically                             
                serve it. We do not make adjustments                        
                for temporary closures, expansions                          
                or renovations of stores.                                   
Normalized      Comparable store sales normalized by Used to measure the    
 comparable     using published nitrogen, phosphate  performance of our     
 store sales    and potash ("NPK") benchmark prices  existing stores by     
                and adjusting current year prices to measuring the change in
                reflect pricing from the previous    sales for such stores  
                year based on our percent of NPK     over the comparable    
                utilization by product.              period.                
----------------------------------------------------------------------------
----------------------------------------------------------------------------
(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 June 30,           
----------------------------------------------------------------------------
                              2014                          2013            
---------------------------------------------- -----------------------------
                 Retail -                      Retail -                     
                    North         Consolidated    North         Consolidated
                  America Retail        Agrium  America Retail        Agrium
---------------------------------------------- -----------------------------
EBIT less income                                                            
 taxes                                                                      
 EBIT               1,003    873         1,275      659    678         2,045
 Income taxes         271    236           344      179    185           560
---------------------------------------------- -----------------------------
                      732    637           931      480    493         1,485
---------------------------------------------- -----------------------------
Average operating                                                           
 capital employed                                                           
 Average non-cash                                                           
  working capital   1,676  2,219         2,297    1,650  2,325         2,671
 Average                                                                    
  property, plant                                                           
  and equipment       841    963         5,078      645    770         3,568
 Average                                                                    
  investments in                                                            
  associates and                                                            
  joint ventures       32     78           629       32     87           635
 Average other                                                              
  assets                4     10           106        3     15            76
---------------------------------------------- -----------------------------
                    2,553  3,270         8,110    2,330  3,197         6,950
---------------------------------------------- -----------------------------
Return on                                                                   
 operating                                                                  
 capital employed                                                           
 (%)                   29     19            11       21     15            21
---------------------------------------------- -----------------------------
---------------------------------------------- -----------------------------
Average capital                                                             
 employed                                                                   
 Average                                                                    
  operating                                                                 
  capital                                                                   
  employed          2,553  3,270         8,110    2,330  3,197         6,950
 Average                                                                    
  intangibles         614    686           703      498    580           632
 Average goodwill   1,779  1,989         2,039    1,806  2,218         2,313
---------------------------------------------- -----------------------------
                    4,946  5,945        10,852    4,634  5,995         9,895
---------------------------------------------- -----------------------------
Return on capital                                                           
 employed (%)          15     11             9       10      8            15
---------------------------------------------- -----------------------------
---------------------------------------------- -----------------------------
                                                                            
                                                                            
Comparable store sales                                                      
 and normalized                                                             
 comparable store sales         Six months ended June 30,                   
----------------------------------------------------------------------------
                            2014                          2013              
---------------------------------                      --------             
Sales from                                                                  
 comparable base                                                            
 Current period            7,437                         7,460              
 Prior period              7,702                         7,670              
---------------------------------                      --------             
 Comparable store                                                           
  sales (%)                   (3)                           (3)             
---------------------------------                      --------             
 Current period                                                             
  normalized for                                                            
  benchmark                                                                 
  prices                   7,716                         7,769              
---------------------------------                      --------             
 Normalized                                                                 
  comparable                                                                
  store sales (%)              -                             1              
---------------------------------                      --------             
---------------------------------                      --------             

Contacts:
Investor/Media Relations:
Agrium Inc.
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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