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        <Identifier>DESCRIPTION OF UNCERTAIN TAX POSITIONS UNDER FIN 48:</Identifier>
        <ReturnReference>PART X:</ReturnReference>
        <Explanation>THE FEDERATION'S APPLICATION OF GAAPUSA REGARDING UNCERTAIN TAX POSITIONS HAD NO EFFECT ON ITS FINANCIAL POSITION AS MANAGEMENT BELIEVES THE FEDERATION HAS NO MATERIAL UNRECOGNIZED INCOME TAX BENEFITS. THE FEDERATION WOULD ACCOUNT FOR ANY POTENTIAL INTEREST OR PENALTIES RELATED TO POSSIBLE FUTURE LIABILITIES FOR UNRECOGNIZED INCOME TAX BENEFITS AS INCOME TAX EXPENSE. THE FEDERATION IS NO LONGER SUBJECT TO EXAMINATION BY TAX AUTHORITIES FOR FEDERAL, STATE OR LOCAL INCOME TAXES FOR PERIODS BEFORE 2009.</Explanation>
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        <Explanation>EQUITY IN NET INCOME (LOSS) OF SUBSIDIARIES 96,030. PENSION RELATED CHARGES OTHER THAN NET PERIODIC PENSION COST 105,100. TOTAL TO SCHEDULE D, PART XI, LINE 8: 201,130.</Explanation>
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        <Explanation>INVESTMENT INCOME FROM AFBF LEGAL ADVOCACY - SINGLE MEMBER LLC 6,071. GAIN (LOSS) ON SALE OF PROPERTY AND EQUIPMENT -1,785. CONTRIBUTIONS FROM AFBF LEGAL ADVOCACY - SINGLE MEMBER LLC 308,421. SALE OF INVENTORY - NETTED AGAINST EXPENSES 15,239. SPONSORSHIP REVENUE NETTED AGAINST EXPENES 411,300.</Explanation>
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      <Form990ScheduleDPartXIV>
        <Identifier>PART XIII, LINE 2D - OTHER ADJUSTMENTS:</Identifier>
        <Explanation>GAIN (LOSS) ON SALE OF PROPERTY AND EQUIPMENT 1,785.</Explanation>
      </Form990ScheduleDPartXIV>
      <Form990ScheduleDPartXIV>
        <Identifier>PART XIII, LINE 4B - OTHER ADJUSTMENTS:</Identifier>
        <Explanation>EXPENSES OF AFBF LEGAL ADVOCACY - SINGLE MEMBER LLC 977,653. SALE OF INVENTORY - NETTED AGAINST EXPENSES 15,239. SPONSORSHIP REVENUE NETTED AGAINST EXPENES 411,300.</Explanation>
      </Form990ScheduleDPartXIV>
    </IRS990ScheduleD>
    <IRS990ScheduleI documentId="RetDoc1041900001">
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        <PurposeOfGrant>GENERAL SUPPORT OF AGRICULTURAL PROGRAMS</PurposeOfGrant>
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          <City>ARLINGTON</City>
          <State>VA</State>
          <ZIPCode>22201</ZIPCode>
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      <Form990ScheduleJPartII>
        <NamePerson>RICHARD NEWPHER</NamePerson>
        <BaseCompensationFilingOrg>585547</BaseCompensationFilingOrg>
        <CompBasedOnRelatedOrgs>0</CompBasedOnRelatedOrgs>
        <BonusFilingOrg>0</BonusFilingOrg>
        <BonusRelatedOrgs>0</BonusRelatedOrgs>
        <OtherCompensationFilingOrg>0</OtherCompensationFilingOrg>
        <OtherCompensationRelatedOrgs>0</OtherCompensationRelatedOrgs>
        <DeferredCompFilingOrg>106178</DeferredCompFilingOrg>
        <DeferredCompRelatedOrgs>0</DeferredCompRelatedOrgs>
        <NontaxableBenefitsFilingOrg>10582</NontaxableBenefitsFilingOrg>
        <NontaxableBenefitsRelatedOrgs>0</NontaxableBenefitsRelatedOrgs>
        <TotalCompensationFilingOrg>702307</TotalCompensationFilingOrg>
        <TotalCompensationRelatedOrgs>0</TotalCompensationRelatedOrgs>
        <CompReportPrior990FilingOrg>0</CompReportPrior990FilingOrg>
        <CompReportPrior990RelatedOrgs>0</CompReportPrior990RelatedOrgs>
      </Form990ScheduleJPartII>
      <Form990ScheduleJPartIII>
        <ReturnReference>PART I, LINE 1A</ReturnReference>
        <Explanation>STACY BRYAN (SPOUSE OF BOB STALLMAN, PRESIDENT) AND NANCY NEWPHER (SPOUSE OF DICK NEWPHER, EXT VICE PRESIDENT) TRAVEL TO AFBF MEETINGS WHERE THERE ARE SCHEDULED BUSINESS ACTIVITIES. THE AFBF BOARD OF DIRECTORS JUNE BOARD MEETING INCLUDED TRAVEL EXPENSES FOR SPOUSES/COMPANIONS FOR SCHEDULED BUSINESS ACTIVITIES. THE SCHEDULED ACTIVITIES AT THE MEETINGS MAY INCLUDE: OFFICIAL MEETING OF SPOUSES OR COMPANIONS TO INFORM EACH OF THEM ON THE VARIOUS ISSUES FACING AFBF, EDUCATIONAL PRESENTATIONS REGARDING THE INDIVIDUAL STATE FARM BUREAU ACTIVITY AND THE AGRICULTURE OF THE HOST STATE, VISITS TO AGRICULTURAL PRODUCTION FACILITIES, PROGRAMS AND TOURS OF STATE AND COUNTY FARM BUREAU OFFICES, VARIOUS AGRICULTURAL ACTIVITIES PROVIDED BY HOSTING STATE FARM BUREAU, OR VISITS TO AGRICULTURAL PROCESSING AND MARKETING FACILITIES.</Explanation>
      </Form990ScheduleJPartIII>
      <Form990ScheduleJPartIII>
        <ReturnReference>PART I, LINE 4B</ReturnReference>
        <Explanation>EFFECTIVE JANUARY 1, 2011, THE FEDERATION ADOPTED A 457(F) DEFERRED COMPENSATION PLAN (THE 457(F) PLAN) FOR ITS CURRENT PRESIDENT AND FORMER EXECUTIVE VICE PRESIDENT. THE CURRENT PRESIDENT AND FORMER EXECUTIVE VICE PRESIDENT SHALL HAVE A FULLY VESTED, NONFORFEITABLE INTEREST IN HIS DEFERRED COMPENSATION IF THE FEDERATION DISSOLVES OR IF EACH INDIVIDUAL (1) DIES; (2) BECOMES DISABLED; OR (3) INVOLUNTARILY SEPARATES FROM SERVICE WITHOUT CAUSE. FOR 2011 THE PRESIDENT ACCRUED DEFERRED COMPENSATION BENEFITS OF $210,000 AND THE FORMER EXECUTIVE VICE PRESIDENT ACCRUED DEFERRED COMPENSATION BENEFITS OF $102,358.</Explanation>
      </Form990ScheduleJPartIII>
    </IRS990ScheduleJ>
    <IRS990ScheduleO documentId="RetDoc1044400001">
      <GeneralExplanation>
        <ReturnReference>FORM 990, PART VI, SECTION A, LINE 6</ReturnReference>
        <Explanation>AFBF MEMBERS ARE THE STATE FARM BUREAU'S AND PRESIDENTS OF THOSE STATE FARM BUREAU'S SIT ON AFBF BOARD OF DIRECTORS. THIRTY-ONE OF THE BOARD MEMBERS OF AFBF ARE STATE FARM BUREAU PRESIDENTS. THE BOARD POSITIONS ARE DETERMINED BASED ON THE FOLLOWING INTERPRETATION OF SECTION 4, ARTICLE VIII OF THE AFBF BYLAWS: TOTAL MEMBERSHIP - BOARD POSITIONS UNDER 200,001 - 4 200,001 - 600,000 - 5 600,001 - 1,000,000 - 6 1,000,001 - 1,400,000 - 7 1,400,001 - 1,800,000 - 8 1,800,001 - 2,200,000 - 9 2,200,001 - 2,600,000 - 10 2,600,001 - 3,000,000 - 11 3,000,001 - 3,400,000 - 12 3,400,001 - 3,800,000 - 13 3,800,001 - 4,200,000 - 14 THE BOARD POSITIONS ARE DETERMINED BY THE 4 REGIONS: NORTHEAST MIDWEST WEST SOUTH IN ADDITION TO THE 4 REGIONS AND MEMBERSHIP DETERMINING THE NUMBER OF BOARD POSITIONS FOR EACH OF THE REGIONS - THE AFBF WOMEN'S COMMITTEE CHAIRMAN AND AFBF YF&amp;R'S COMMITTEE CHAIRMAN ALSO HAVE A SEAT ON THE AFBF'S BOARD OF DIRECTORS.</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <ReturnReference>FORM 990, PART VI, SECTION A, LINE 7A</ReturnReference>
        <Explanation>SEE RESPONSE TO PART VI, SECTION A, QUESTION 6</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <ReturnReference>FORM 990, PART VI, SECTION B, LINE 11</ReturnReference>
        <Explanation>GOVERNING BODY REVIEW OF THE FORM 990 - THE BOARD RETAINS THE SERVICES OF AN INDEPENDENT CPA FIRM TO PREPARE AND REVIEW THE ORGANIZATION'S FORM 990. MANAGEMENT REVIEWS THE COMPLETED FORM 990 AND PROVIDES A FULL COPY TO THE EXECUTIVE COMMITTEE OF THE ORGANIZATION. THE EXECUTIVE COMMITTEE MEETS WITH MANAGEMENT TO REVIEW THE FORM 990. THE AFBF BOARD OF DIRECTORS REVIEWS THE FORM 990 AT THE OCTOBER BOARD MEETING PRIOR TO FILING THE FORM 990.</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <ReturnReference>FORM 990, PART VI, SECTION B, LINE 12C</ReturnReference>
        <Explanation>OFFICERS, DIRECTORS AND EMPLOYEES ARE ANNUALLY REQUIRED TO COMPLETE A CONFLICT OF INTEREST DISCLOSURE STATEMENT AS A PRESCURSOR TO THEIR SERVICE TO THE ORGANIZATION. POTENTIAL CONFLICTS ARE LOGGED WITH AND MONITORED BY THE SECRETARY OF THE BOARD.</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <ReturnReference>FORM 990, PART VI, SECTION B, LINE 15</ReturnReference>
        <Explanation>AMERICAN FARM BUREAU FEDERATION (AFBF) MAINTAINS A GRADE STRUCTURE AND PAY FOR PERFORMANCE SYSTEM TO ADMINISTER COMPENSATION DECISIONS AND ENSURE THAT EMPLOYEES ARE PAID ACCORDING TO FAIR, EQUITABLE AND UNIFORM PRINCIPLES. THIS PROGRAM HAS BEEN ADOPTED BY THE ORGANIZATION'S BOARD OF DIRECTORS. EACH YEAR, AFBF REVIEWS ITS GRADE STRUCTURE TO DETERMINE IF THE RANGES NEED TO BE ADJUSTED BASED ON FACTORS SUCH AS COST OF LIVING AND CHANGES IN THE INDUSTRY. AFBF WILL OFTEN CONSULT WITH A THIRD PARTY TO REVIEW THE GRADE STRUCTURE AND CONDUCT A REVIEW OF MARKET DATA. THE GRADE RANGES MAY BE SHIFTED IN ACCORDANCE WITH MARKET OR SURVEY DATA. AFBF CONDUCTS PERFORMANCE REVIEWS ANNUALLY THROUGH AN ONLINE SYSTEM UTILIZING A STANDARD TEMPLATE APPROVED BY THE AFBF MANAGEMENT TEAM AND EXECUTIVE VICE PRESIDENT. THE TEMPLATE HAS PERFORMANCE CATEGORIES WITH SEVERAL COMPETENCIES UTILIZED TO ASSESS PERFORMANCE IN EACH AREA. SUPERVISORS COMPLETE THE REVIEWS, AND THE OVERALL PERFORMANCE RATING FOR EACH EMPLOYEE DETERMINES THEIR ANNUAL SALARY INCREASE. HUMAN RESOURCES REVIEWS EACH COMPLETED PERFORMANCE REVIEW DOCUMENT. THE PERCENTAGE SALARY INCREASE FOR VARIOUS PERFORMANCE RATING AVERAGES IS SUBJECT TO THE APPROVAL OF THE EXECUTIVE VICE PRESIDENT AND THE OVERALL BUDGET APPROVED BY THE AFBF BOARD OF DIRECTORS. EMPLOYEES ARE NOTIFIED OF ANY INCREASE IN PAY AFTER THE OCTOBER BOARD MEETING. THE PRESIDENT'S COMPENSATION IS DETERMINED BY THE EXECUTIVE COMMITTEE OF THE ORGANIZATION AND IS REPORTED TO THE BOARD OF DIRECTORS DURING THE BUDGET PROCESS.</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <ReturnReference>FORM 990, PART VI, SECTION C, LINE 19</ReturnReference>
        <Explanation>GOVERNING DOCUMENTS - FINANCIAL STATEMENTS AND THE CONFLICT OF INTEREST POLICY ARE AVAILABLE UPON REQUEST.</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <Identifier>CHANGES IN NET ASSETS OR FUND BALANCES:</Identifier>
        <ReturnReference>FORM 990, PART XI, LINE 5:</ReturnReference>
        <Explanation>NET UNREALIZED GAINS ON INVESTMENTS: 838,678. EQUITY IN NET INCOME (LOSS) OF SUBSIDIARIES 96,030. PENSION RELATED CHARGES OTHER THAN NET PERIODIC PENSION COST 105,100. TOTAL TO FORM 990, PART XI, LINE 5: 1,039,808.</Explanation>
      </GeneralExplanation>
    </IRS990ScheduleO>
    <IRS990ScheduleR documentId="RetDoc1043400001">
      <Form990ScheduleRPartI>
        <NameOfDisregardedEntity>
          <BusinessNameLine1>AFBF LEGAL ADVOCACY PROGRAM LLC</BusinessNameLine1>
        </NameOfDisregardedEntity>
        <AddressUS>
          <AddressLine1>600 MARYLAND AVE SW SUITE 1000</AddressLine1>
          <City>WASHINGTON</City>
          <State>DC</State>
          <ZIPCode>20024</ZIPCode>
        </AddressUS>
        <EIN>651294705</EIN>
        <PrimaryActivities>AFBF LEGAL ADVOCACY PROGRAM, LLC A SINGLE MEMBER LLC</PrimaryActivities>
        <LegalDomicileState>DE</LegalDomicileState>
        <TotalIncome>314492</TotalIncome>
        <EOYAssets>3658167</EOYAssets>
        <DirectControllingEntityName>
          <BusinessNameLine1>AMERICAN FARM BUREAU FEDERATION</BusinessNameLine1>
        </DirectControllingEntityName>
      </Form990ScheduleRPartI>
      <Form990ScheduleRPartII>
        <NameOfDisregardedEntity>
          <BusinessNameLine1>AMERICAN FARM BUREAU FOUNDATION FOR AGRICULTURE</BusinessNameLine1>
        </NameOfDisregardedEntity>
        <AddressUS>
          <AddressLine1>600 MARYLAND AVE SW STE 1000</AddressLine1>
          <City>WASHINGTON</City>
          <State>DC</State>
          <ZIPCode>20024</ZIPCode>
        </AddressUS>
        <EIN>366169577</EIN>
        <PrimaryActivities>ACCUMULATES &amp; DISTRIB. FUNDS FOR MATERIALS,PROGRAM DEV. GRANTS AND EDUCATION</PrimaryActivities>
        <LegalDomicileState>IL</LegalDomicileState>
        <ExemptCodeSection>501(C)(3)</ExemptCodeSection>
        <PublicCharityStatus>LINE 11A, I</PublicCharityStatus>
        <DirectControllingEntityName>
          <BusinessNameLine1>AMERICAN FARM BUREAU FEDERATION</BusinessNameLine1>
        </DirectControllingEntityName>
        <ControlledOrg>1</ControlledOrg>
      </Form990ScheduleRPartII>
      <Form990ScheduleRPartIV>
        <NameOfRelatedOrg>
          <BusinessNameLine1>AMERICAN FARM BUREAU INC (AFBI)</BusinessNameLine1>
        </NameOfRelatedOrg>
        <AddressUS>
          <AddressLine1>600 MARYLAND AVE SW SUITE 1000W</AddressLine1>
          <City>WASHINGTON</City>
          <State>DC</State>
          <ZIPCode>20024</ZIPCode>
        </AddressUS>
        <EIN>363250406</EIN>
        <PrimaryActivity>BUSINESS MANAGEMENT</PrimaryActivity>
        <LegalDomicileState>DC</LegalDomicileState>
        <DirectControllingEntityName>
          <BusinessNameLine1>AMERICAN FARM BUREAU FEDERATION</BusinessNameLine1>
        </DirectControllingEntityName>
        <TypeOfEntity>C</TypeOfEntity>
        <ShareOfTotalIncome>1304894</ShareOfTotalIncome>
        <ShareOfEOYAssets>2675864</ShareOfEOYAssets>
        <PercentageOwnership>1.00000</PercentageOwnership>
      </Form990ScheduleRPartIV>
      <ReceiptOfIntAnnRentsRoyalties>0</ReceiptOfIntAnnRentsRoyalties>
      <GiftGrantOrCapContrToOtherOrg>1</GiftGrantOrCapContrToOtherOrg>
      <GiftGrantOrCapContrFrOtherOrg>0</GiftGrantOrCapContrFrOtherOrg>
      <LoansOrGuaranteesToOtherOrg>0</LoansOrGuaranteesToOtherOrg>
      <LoansOrGuaranteesFromOtherOrg>0</LoansOrGuaranteesFromOtherOrg>
      <SaleOfAssetsToOtherOrg>0</SaleOfAssetsToOtherOrg>
      <PurchaseOfAssetsFromOtherOrg>0</PurchaseOfAssetsFromOtherOrg>
      <ExchangeOfAssets>0</ExchangeOfAssets>
      <RentalOfFacilitiesToOtherOrgs>0</RentalOfFacilitiesToOtherOrgs>
      <RentalOfFacilitiesFrOtherOrgs>0</RentalOfFacilitiesFrOtherOrgs>
      <PerformOfServicesForOtherOrgs>0</PerformOfServicesForOtherOrgs>
      <PerformOfServicesByOtherOrgs>0</PerformOfServicesByOtherOrgs>
      <SharingOfFacilities>1</SharingOfFacilities>
      <SharingOfPaidEmployees>1</SharingOfPaidEmployees>
      <ReimbursementPaidToOtherOrg>0</ReimbursementPaidToOtherOrg>
      <ReimbursementPaidByOtherOrg>1</ReimbursementPaidByOtherOrg>
      <OtherTransferToOtherOrg>0</OtherTransferToOtherOrg>
      <OtherTransferFromOtherOrg>0</OtherTransferFromOtherOrg>
      <TransactionsRelatedOrgsTable>
        <NameOfOtherOrganization>
          <BusinessNameLine1>AMERICAN FARM BUREAU FOUNDATION FOR AGRICULTURE</BusinessNameLine1>
        </NameOfOtherOrganization>
        <TransactionType>B</TransactionType>
        <AmountInvolved>115000</AmountInvolved>
        <MethodOfAmtDetermination>MAINTAINED RECORDS AT FMV</MethodOfAmtDetermination>
      </TransactionsRelatedOrgsTable>
      <TransactionsRelatedOrgsTable>
        <NameOfOtherOrganization>
          <BusinessNameLine1>AMERICAN FARM BUREAU FOUNDATION FOR AGRICULTURE</BusinessNameLine1>
        </NameOfOtherOrganization>
        <TransactionType>P</TransactionType>
        <AmountInvolved>529377</AmountInvolved>
        <MethodOfAmtDetermination>MAINTAINED RECORDS AT FMV</MethodOfAmtDetermination>
      </TransactionsRelatedOrgsTable>
      <TransactionsRelatedOrgsTable>
        <NameOfOtherOrganization>
          <BusinessNameLine1>AMERICAN FARM BUREAU INC</BusinessNameLine1>
        </NameOfOtherOrganization>
        <TransactionType>P</TransactionType>
        <AmountInvolved>645566</AmountInvolved>
        <MethodOfAmtDetermination>MAINTAINED RECORDS AT FMV</MethodOfAmtDetermination>
      </TransactionsRelatedOrgsTable>
    </IRS990ScheduleR>
  </ReturnData>
</Return>