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Direct subsidies for farms, paid through 1992, are being replaced in 

 1993 with a system of indirect support via guaranteed prices, somewhat similar 

 to the U.S. price support system, 



Prices paid for grain for state procurement have been raised several 

 times. The starting price for 1993 crop wheat is 28,000 rubles per ton (about 

 $40 at current exchange rates) and this will be adjusted this summer to 

 account for input price increases. Compulsory sales of agricultural produce 

 to state reserves are to be abolished in 1993. 



The Supreme Soviet is considering a bill which will permit land and 

 real estate mortgages. 



Continued agricultural and food sector reform will depend on continued 

 support from a reform-minded government, and that government must be able to 

 deliver food to the major urban areas in the next few months. 



Mr. Chairman, no one knows what course Russian agriculture will take over 

 the next few years, or what the pace of reform will be. Let me outline for 

 you some of our thoughts. 



