Profertil and Argentine Government reach agreement on support for Argentine growers

Release Date: 6/17/2006

CALGARY, Alberta -- Agrium Inc. (TSX and NYSE: AGU) announced today that Profertil S.A. and the Argentine Government have reached an agreement on short-term support measures for Argentine growers.  These measures include establishing a ceiling for the urea price to growers of $300 per tonne for the second half of 2006, to provide improved input cost predictability for growers.  This decision is not expected to have a material impact on Agrium’s 2006 financial results. 
 
The agreement is expected to support increased fertilizer use and grain production during the upcoming planting season and is part of the Argentine Government’s broader cost control economic program.    

Profertil S.A. is 50 percent owned by Agrium Inc. and is an Argentine based manufacturer and wholsesale distributor of nitrogen products.

About Agrium
Agrium Inc. is a leading global producer and marketer of agricultural nutrients and industrial products and a major retail supplier of agricultural products and services in both North and South America.  Agrium produces and markets three primary groups of nutrients: nitrogen, phosphate and potash as well as controlled release fertilizers and micronutrients. Agrium’s strategy is to grow through incremental expansion of its existing operations and acquisitions as well as the development, commercialization and marketing of new products and international opportunities.

Certain statements in this press release constitute forward-looking statements.  Such forward-looking statements involve known and unknown risks and uncertainties as well as various assumptions and business sensitivities, including those referred to in the management discussion and analysis section of the Corporation’s most recent Annual Report to shareholders as well as those risk factors described in the Corporation’s most recent Annual Information Form, which may cause the actual results, performance or achievements of the Corporation to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements.  Other factors that could cause actual results to differ materially from those in the forward-looking statements include, but are not limited to, weather conditions, future global and South American demand, supply and price conditions for nitrogen fertilizer, potential future changes to government policies, future fertilizer inventory levels. Agrium disclaims any intention or obligation to update or revise any forward-looking information as a result of new information or future events.

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