Bankrupt co-op seeks to scale back benefits

KANSAS CITY, Mo. -- Former executives of Farmland Industries Inc. could lose millions of dollars in retirement benefits if the bankrupt company's request to cancel them is approved.

The company wants to reclassify almost $17 million in deferred compensation and retirement adjustments owed to 138 current and former professional level employees, and to cancel life insurance policies for about 2,200 retirees of various levels.

Farmland also wants to renege on about $2 million in "separation" payments it had planned to pay four former top executives for leaving the company.

Kansas City-based Farmland, North America's largest farmer-owned cooperative, has been reorganizing its operations and cutting costs since filing for Chapter 11 bankruptcy protection last May 31. A judge is to hear the benefits-related motions and objections Jan. 28.