191 



the pricing cycl* of grain and ollsaads sold by Cantral Planner* to atata 

 antarpriaa processing plants and silos. 



Recognizing the desperate need for improvement in Russia's grain storage 

 cap{J»ilities, Congress Included language in the Freedom Support Act to 

 address this issue. Section 201 directly refers to the "storage" of 

 agricultural commodities as an activity for which the Preeident is 

 authorized to provide assisteince to the F.6.U. under the Act. 

 Furthermore, the conference Report speaks in specific detail to the type 

 of storage assistance that is appropriate. It states that, since the 

 development of permanent infrastructure will take many years and involve 

 significant cost, our government can provide portable storage facilities 

 until such time as the F.S.U. improves and rationalizes its storage 

 capabilities. 



The goal is to privatize farms so that the burden of rural Russia to the 

 center is reduced dramatically and the center has a chance to survive. 40% 

 of Russia is rural. Privatization of rural Russia is a must. As of 

 December, 1992, only 2% of total farmland has been privatized. Only 6.5 

 million hectares - 160,000 farms - out of a grand total of 325 million 

 ■Jiec tares have been privatized. 



The average farm size today in Russia is 19,000 acres and employs 350 

 workers. These are average farms. 



Private, joint venture storage relationships in rural Russia can be formed 

 with the help of this American government. We know that American private 

 enterprise is prepared to combine with Russian rural private enterprise 

 to kick-start Russian private rural agriculture. 



We should not assume that our commitment to provide assistance to the 

 F.S.U. requires us to supply the latest and most expensive agricultural 

 technology. The F.S.U. needs simple solutions that allow it to deal 

 quickly and appropriately with Its most critical problems. In the 

 agricultural sector, one of the most pressing needs is low cost, versatile 

 grain storage capacity. If we ignore this simple need by providing or 

 financing the purchase of rigid, expensive conventional grain silos, we 

 will be wasting scarce foreign aid during a time when the American people 

 are especially concerned regarding our traditional aid programs. 



The hearing of this Committee and the implementation of your policy 

 positions by the American federal bureaucracy are the essential elements 

 to grow private Russia rural agriculture and literally save the Russian 

 center from the tortures and pressures it is currently suffering from. 



This is micro-help with small costs and most promising results. It should 

 be done. 



(Attachment follows:) 



