Expressing his appreciation for progress achieved by the IFC/KHF program, Minister of Agriculture Khlyustun has forwarded a letter to senior management at the British Know How Fund and IFC indicating a desire to form a closer relationship in order to address areas of mutual interest. The Minister also pledged his assistance in coordinating government departments to help achieve objectives of the upcoming reorganization season, specifically in organizing a Fund for rural sector reforms that in the future could take over the major functions of the current IFC/KHF project.

Analyses of the farm surveys conducted over the summer in Rostov, Oryol, Nizhny Novgorod and Ryazan have been completed. It has helped define the expected results of - the process can be expected to provide ownership incentives that lead to new attitudes toward work, improved work behavior, increased productivity and profitability, and recurring reorganization of farm assets measurable by land liquidity.

The IFC/KHF training seminars have now been accepted at the national level for use in both of the MOA's educational institutions-the Russian Academy of Management and Agribusiness (for professional retraining) and the Timiryazev Academy (for undergraduate education). In October, Timiryazev Academy agreed to offer training in the model program to its graduating seniors beginning in spring 1997. To help instill the training of RAMA and Timiryazev trainers with hands-on experience in farm reorganization, discussions are under way with several farms in Moscow Oblast interested in reorganizing.

More than 400 officials and farm members were trained in project-sponsored training seminars during September. The project's web site (http://soil.msu.ru/~land) continues to publicize training materials available. A press release on the web site in October included instructions on the computer hardware and software requirements, how to access the site and how to organize email conferencing.

Transfer of the reorganization work is proceeding on several fronts in Nizhny Novgorod. The oblast DOA together with the project reorganization team reviewed and selected farms to reorganize during the new season. The oblast DOA shares activity in institutionalizing communication work at the raion level, requiring monthly updates and workplans from the RWCs. RWC information workers organized and conducted four training seminars for information workers on intra-farm commissions in October.

In Rostov, the project team has seen reduced input and commitment to the program since Governor Chub was re-elected in September. The administration is now indicating that they are more interested in pursuing investments than technical assistance projects. A Deputy Governor told a visiting delegation from the British Know How Fund that the administration sees the federally approved model as an "experiment" and that they do not have plans to institutionalize the program within the structure of the oblast administration. Despite the lack of support from oblast officials, there is significant support for and interest in the program from the local level and from other organizations. By the end of October, 10 new farms and 3 additional raions have applied for project assistance with farm reorganization. Project-trained staff from Fondovyi Dom [Fund House] will begin gaining hands-on experience in early November by working with a reorganization farm in Myasnikovsky raion. Fondovyi Dom, an off-shoot of the Regional Property Fund, is a potential candidate for institutionalization of the farm reorganization model in Rostov.

In October the Oryol administration provided a proposal that outlines the creation of a company (Region Tsentr) founded by the administration, DOA and Chernozem Association that would carry out farm reorganization work over the long term. It is envisioned that eventually Region Tsentr would become a semi-private agricultural consulting company. The IFC/KHF program was invited to review the administration's proposal and provide input.

Four new oblasts (Krasnodar, Voronezh, Tula, and Samara) have signed agreements with the IFC/KHF program to undertake farm reorganization with guidance from a Mobile Team. Two new Mobile Teams, based in Rostov and Oryol, have been formed entirely from the existing staff roster, testifying to the maturity and depth of the project's Russian specialists in all phases of the farm reorganization work. A training seminar, conducted in Moscow for 57 representatives from all four new oblasts, included computer training and management of the farm reorganization process as well as a roundtable with oblast, raion and farm officials that had previously gone through the farm reorganization process. Twenty-eight oblast, raion, and farm representatives from Tula and Voronezh traveled to Oryol in early October to observe the achievements of farm reorganization. Similar trips are planned over the next few weeks for Krasnodar and Samara.

In Volgograd 51 farms that have expressed an interest in reorganization under the federally approved model this season. Each raion working commission has been further requested by the oblast DOA to reorganize at least one farm before the beginning of the spring planting. A press conference, fully organized and run by the OWG communications team, took place on 21 October with over 40 journalists from the national and oblast press in attendance. The head of the oblast DOA and the project's senior agrarian theorist were keynote speakers at the event.

The results of the gubernatorial elections in Kirov may complicate the issue of transferring OWG costs onto the oblast budget. More than 20 farms have expressed interest in reorganizing under the federally approved model this season.

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