Dear Prairie Customers:
Saskatchewan Wheat Pool has earned great respect at home and around the world. We’re known for our longstanding values of honesty and integrity and our commitment to new solutions and innovative thinking. Today’s farmers are important to us; as are the farmers of the future. Our relationships with industry participants such as suppliers and end-use customers are also vital.

The steps we are taking are for a better future for Western Canadian agriculture – for farmers and destination markets around the world, and for those who invest in our business.

Revitalized, with a strong and flexible financial foundation, we are a Company that is now ready to grow. We have overcome challenges, and executed on plans that have led us to success. We are now positioned with one of the healthiest balance sheets in the industry. With three straight years of bottom line profits and momentum building, we are confident the time is right to create a Canadian champion.

On November 7, 2006, the Pool acted as a catalyst for change, announcing our intent to make a formal offer for Agricore United’s public securities. Our proposal to create a stronger, more diversified presence that will better serve producers and their communities as well as other industry participants is the result of compelling analysis.

Our CEO spoke with Agricore’s CEO Mr. Brian Hayward on October 25, 2006, when we first presented the proposal to his company. Throughout, we have encouraged open dialogue with AU. We believe the advantages of a merger are too important to ignore. This is why we have also presented our offer directly to Agricore United’s shareholders for their consideration.

Our merger proposal if accepted would give us a new Canadian based company with the scale and scope to compete in the global marketplace, currently dominated by multi-nationals. It would better represent the interests of western Canadian farmers in the national and international arena, providing:

· Greater access to premium grain markets domestically and internationally
· Improved product/program choice; and
· Enhanced transportation, logistical services and marketing.

Our employees are committed to providing the best services and solutions to our customers, and that will not change. There will still be significant competition for your grain and agri-products business, with six major grain handling and marketing companies in Western Canada, many independent producers’ terminals, producer car loading sites as well as a number of grain brokers and dealers competing for grain. Producers have a large selection of Agri-products retailers, with over 250 competitors at 900 locations Prairie-wide. As well, with the expansion of ethanol and bio-diesel, we expect significant new demands for farmers’ grains and oilseeds, providing another marketing choice.

Part of our plan is to ensure a strong governance role for producers based on the success of our Western Farm Leadership Cooperative (“FLC”) model adopted by the Pool in 2005. Under a combination, current Agricore United members would be invited to join the FLC, creating the largest voice for farmers in western Canadian agriculture. The composition of the Pool’s Board would also present opportunities for farmers, who have been active contributors to the governance structures of both the Pool and Agricore United in the past.

We believe the combination of our two companies will benefit the industry in which we operate, and will enhance our relationship with farmers. We must embrace new solutions that create a positive and enduring economic climate for all agriculture participants. We must secure and improve the future of Western Canadian agriculture.

We will continue to share our progress as events occur. You may also find information on our proposed merger at www.swp.com.

Terry Baker,
Chairman of the Board