1274762--5/25/2006--UNITED_AGRI_PRODUCTS_INC

related topics
{condition, economic, financial}
{debt, indebtedness, cash}
{competitive, industry, competition}
{customer, product, revenue}
{cost, regulation, environmental}
{stock, price, operating}
{personnel, key, retain}
{regulation, government, change}
Our and our customers businesses are subject to seasonality and this may affect our revenues, carrying costs, and collection of receivables. Weather conditions may materially impact the demand for our products and services. Our industry is very competitive and increased competition could reduce our sales and profit margins. Government regulation and agricultural policy may affect the demand for our products and therefore our financial viability. Our industry is dependent on farm expenditures for crop inputs. Factors that affect the levels of crop input spending could adversely impact our business. Our growth within the agricultural inputs distribution industry is partially dependent upon acquisitions, which could adversely affect our future performance. We are subject to expenses, claims, and liabilities under environmental, health and safety laws and regulations. Our substantial indebtedness could adversely affect our financial condition and impair our ability to operate our business or pay dividends on our common stock. Restrictive covenants in the agreements governing our indebtedness may restrict our ability to pursue our business strategies or pay dividends on our common stock. Our profitability depends significantly on rebates from our suppliers. If we are unsuccessful in earning, negotiating, or collecting rebates, it could have an adverse impact on our business. Our success depends on a limited number of key employees and we may not be able to adequately replace them if they leave. UAP Holding Corp. s largest stockholder influences us and its interests may conflict with or differ from our and/or your interests in the future.

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