119 



Moreover, the collectives and private farms have no option at 

 this time but to sell and ship their grain to the Government and 

 receive in exchange prices that are approximately one-fifth of the 

 world market price. Economic survival for the farmers at these dis- 

 astrous prices is not possible. 



How to save 30 million tons of grain and give the Russian farmer 

 a chance to survive? The answer, private storage at the farm level. 

 Without farm storage, the farmer must ship to the huge distant 

 state enterprise silos and get paid 20 percent of the world fair price 

 or do not ship, and waste 20 to 25 percent of their grain. 



Let me say this again, because this is the critical part of the Rus- 

 sian rural existence. If the Russian farm and farmer have an alter- 

 native method to store its and his grain, the waste is negated, the 

 prices received can increase dramatically and the private farm, 

 under private land ownership, will become the critical new impor- 

 tant feature of the total Russian economy. 



In all of our travels throughout Russia we have come to one con- 

 clusion. Without a new and economic farm grain storage, the Rus- 

 sian state farmer and farm will never get a fair price for their 

 product. With the new alternative choice for crop storage, the Rus- 

 sian farm and farmer can break the cycle in grain and oilseeds sold 

 by the central planners to the state enterprise processing plants 

 and silos. 



Mr. Chairman, I have about another 3, 4 minutes. May I con- 

 tinue? I see the red light is on. 



Mr. Penny. Why don't you conclude and then we will move to 

 questions. 



Mr. Joseph. All right, fine. 



We have within the acts of Congress, particularly the Freedom 

 Support Act, the means to address this issue. One of our sections 

 within this act directly refers to the storage of agricultural com- 

 modities as an activity for which the President, our President, is 

 authorized to provide assistance to the FSU under the act. The con- 

 ference report of this Congress speaks in specific detail to the type 

 of storage assistance that is appropriate. 



The goal, again, is a privatized farm so that the burden of rural 

 Russia to the center, Moscow, is reduced dramatically, and the cen- 

 ter has a chance to survive. Forty percent of Russia is rural. Pri- 

 vatization of rural farms is a must. 



I would conclude, Mr. Chairman, by saying the hearing of this 

 committee and the implementation of your policy positions by the 

 American Federal bureaucracy are the essential elements to grow 

 private rural agriculture, Russian rural agriculture, and literally 

 save the Russian center from the tortures and the pressures it is 

 currently suffering from. What we are suggesting is microhelp, 

 with small cost and most promising results. It should be done. 



[The prepared statement of Mr. Joseph appears at the conclusion 

 of the hearing.] 



Mr. Penny. Thank you. I appreciate your testimony this morn- 

 ing. 



Land O'Lakes is also interested in a monetization program. 

 Would you care to describe the outlines of that program and how 

 we benefit — and how they benefit fi"om that initiative? 



Ms. Cashman. Yes, I would. 



