25 



makes progress toward building free market economies and demo- 

 cratic institutions, we're going to be able to implement a range of 

 assistance activities, including programs in the agricultural sector. 



Clearly, the agricultural sector is one of the keys to the restruc- 

 turing of these economies. So far this year we've signed agreements 

 with eight of the newly independent states, for a total of $337 mil- 

 lion in grant food assistance and commercial and concessional sales 

 of U.S. agricultural commodities. 



We've also been active in the technical assistance area to address 

 four bottlenecks to development of market-oriented agriculture: 

 Public policy, agricultural credit, infrastructure, and inputs. We've 

 already committed over $100 million in technical assistance to the 

 agricultural sector in these states over the next 3 years. 



Our programs fall into four categories: Policy advice, agricultural 

 exchanges, agribusiness development, and agricultural demonstra- 

 tion and training projects. In the policy advice area, we need to 

 help develop the necessary policy framework for the development 

 of a market-oriented agricultural system. Our agricultural ex- 

 changes try to develop the farmer-to-farmer concept as well as fel- 

 lowship programs that bring people from Russia and the other 

 states to the United States to get involved with United States agri- 

 business. In the area of agribusiness development, we're providing 

 incentives for investment in trade by U.S. businesses in the agri- 

 business sector, particularly activities that will increase the effi- 

 ciency of the NIS food system. Finally, in the demonstration and 

 training area, we're trying to set up projects that will help in the 

 development of wholesale markets, model farms, agribusiness 

 training, and low-cost storage programs to reduce post-harvest 

 losses. 



Many of our technical assistance projects are just now beginning 

 to be implemented, and we look forward to tracking the progress 

 of these programs and assessing their impact on the development 

 of private agriculture in the newly independent states. 



The contribution that our agricultural policy advisors — one of 

 whom will here be tomorrow — have made has been enormous. 

 You've already heard dramatic first-hand testimony of Russian 

 farmers about their needs in this area and the importance of farm- 

 er-to-farmer volunteers. 



It's important to recognize the full range of these programs that 

 will be implemented in those districts, regions, and countries where 

 enterprising and courageous leaders are implementing reforms. 

 We're confident that we'll see regions where private agricultural 

 production, processing, marketing, and distribution systems have 

 taken root that will allow both farmers and consumers to taste the 

 fruits of economic reform. 



Thank you, Mr. Chairman. 



[The prepared statement of Mr. Kauzlarich appears at the con- 

 clusion of the hearing.] 



Mr. Penny. Thank you, Mr. Kauzlarich. Given the fact that Rep- 

 resentative Glickman preceded you at the table this morning, I 

 think before I ask questions that are specific to your testimony, I'd 

 like your reaction to his linkage of debt forgiveness with other con- 

 ditions and how that tracks with the thinking of the State Depart- 

 ment at this point. 



