I thank the gentleman for yielding. Mr. Chairman, I rise today to support this bill and provisions therein which underscore that a free, independent, and democratic Ukraine is in the interests of…
I thank the gentleman for yielding.
Mr. Chairman, I rise today to support this bill and provisions therein which underscore that a free, independent, and democratic Ukraine is in the interests of liberty everywhere, most especially the European continent, which largely shares America's constitutional values and respect for the rule of law.
The road ahead will not be easy. Ukraine faces enormous challenges in transitioning to a democratic society as Russia eats away at her eastern provinces and now begins to sabotage her internal assets. The incomes of ordinary people in Ukraine have dropped significantly. Consumer inflation for the year is up 16 percent at the same time the Hryvnia has depreciated sharply, forcing private consumption to drop precipitously and further pushing GDP to decline. Life for ordinary citizens has become increasingly unsympathetic. Liberty hangs in the balance. With winter's approach, economic pressures will further mount as Russia restricts gas supplies to Ukraine.
This is a time for attention to Ukraine, which holds enormous potential to be the world's breadbasket in this 21st century, if only political conditions are stabilized to allow a better future to be built for all.
One powerful dimension of Ukrainian society most often ignored by Ukraine's former leaders and by the world community is Ukraine's village women. Despite all obstacles, they continue to produce nearly half the food
that that nation's citizens eat. In village after village, on plots that are small and open pastures, these stalwart women--many of them grandmothers--toil, using simple hand tools, worn out handcarts, wearing old boots, and planting seed and plants whose germ-plasma is nearly worn out. Their timeworn, horse-drawn wagons need tires to navigate the rough back roads. Their dwellings often lack water and indoor plumbing. Life is survival, and it is hard.
Empowering Ukraine's women to lighten their load and make their task a bit easier would be one important step our country and world leaders could take to allow Ukraine to transition through these delicate years to a better future.
For these reasons, the Appropriations Committee included language in the Defense bill directing the Secretary of Defense to submit a report to the congressional defense committees not later than 60 days after the enactment of this act describing additional assistance that the Department may provide to Ukraine, including out of its surplus warehouses.
The goal of our humanitarian efforts is to empower the women of Ukraine, who, despite enormous obstacles, literally hold their families and that nation together. It is to use humanitarian shipments from our country, from government surplus--anywhere in the world we can acquire it--to simply provide items to help them with their food production and preservation. Give to these village women: good seed, buckets, wheelbarrows, gloves, boots, shovels, scythes, hoes, rakes, plastic on rolls, fencing, carts, used tires that will fit their horse-drawn wagons, simple canning equipment for putting up fruits and vegetables, drying equipment, scissors, hand shovels, grass clippers, pruners, loppers, saws, hammers, small hoop houses, hose, rope, and string. And while we are at it, how about some shortwave radios so they can connect to the world beyond their meager circumstances?
We anticipate with other provisions in this legislation States with lift capacity, such as Ohio, can arrange Department of Defense humanitarian shipments through their National Guard Partnership for Peace programs to transport the above-mentioned agricultural tools and supplies to the Ukrainian women in their villages through charitable networks in that country.
Mr. Chairman, I rise today to recognize this important inclusion in this bill. I thank the chairman of our committee, Mr. Frelinghuysen, the ranking member, Mr. Visclosky, and all freedom-loving people everywhere for understanding the vital consequence of these provisions at this moment of history. I would like to include for the Record an article entitled ``Ukraine Faces Hurdles in Restoring Its Farming Legacy.''
[From the New York Times, May 27, 2014]
Ukraine Faces Hurdles in Restoring Its Farming Legacy
(By Danny Hakim)
Zibolky, Ukraine.--Like many of her neighbors in this old
Soviet collective farm, Maria Onysko prefers to be paid in
grain instead of cash for the modest plot of land she rents
out.
``I have two cows and four pigs, many chickens,'' said Ms.
Onysko, 62. ``So we use it for them.''
After the breakup of the Soviet Union, farmland in newly
independent Ukraine was divided among villagers, acre by
acre, creating a patchwork of agricultural endeavors that are
often inefficient or unprofitable. Some land is rented to
fruit growers, grain operators or large-scale farming
businesses. Some locals work small plots on their own. Some
acreage sits fallow, stuck in legal limbo after the owner has
died.
Ukraine was once the breadbasket of the Soviet Union, known
for its rich soil where grain, sunflowers and livestock
flourished. But farming production dropped sharply in the
chaotic decade after the collapse of communism, and recovery
has come in fits and starts. Production is only now returning
to peak levels of the 1990s, stymied by the corruption, red
tape and inefficiencies that have plagued the broader
Ukrainian economy for years and left the villagers living
humble existences.
Restoring Ukraine's farming legacy will be crucial to the
success of the country's newly elected president, the
billionaire businessman Petro O. Poroshenko. Such efforts
would go a long way toward fixing Ukraine's economy and
reducing its dependence on Russia. Agriculture once accounted
for nearly 20 percent of the gross domestic product; it is
now roughly 10 percent.
The potential became clear last year when a strong harvest
helped Ukraine avoid a drop in output. ``It was just because
of agriculture,'' said Pavlo Sheremeta, Ukraine's minister of
economic development. ``Otherwise, it would have been a
decline.''
Against the backdrop of the crisis with Russia, Western
interests are pressing for change. The European Union is
moving forward with a plan to bolster trade by lifting custom
duties on Ukrainian agriculture. As part of a deal with the
International Monetary Fund for up to $18 billion in loans,
the country's government must push through business reforms
that would help alleviate the problems with farming and other
businesses.
The hope is that such initiatives will also bolster the
confidence of foreign investors as the crisis abates. Big
multinationals have expressed tentative interest in Ukrainian
agriculture, but they have largely remained on the sidelines,
unwilling to invest in an industry hampered by structural
deficiencies and, more recently, the uncertainty with its
eastern neighbor.
``If cheap capital comes in along with foreign investment,
and you have a good government without roadblocks, Ukraine
can close to double its production in the future,'' said
Roman Fedorowycz, a Ukrainian-American who returned here
years ago and now runs a farming company that grows mainly
corn, sunflowers and soybeans.
Even small improvements would make a big difference in a
highly inefficient industry starved for money. While roughly
70 percent of Ukraine's land is considered suitable for
agriculture, it has not been fully cultivated. The country's
yield per hectare of grain is about half that of the United
States, according to the World Bank.
Change won't come easy, given the challenges. Previous
governments have tried to restrict what crops farmers grow
and when they rotate crops, as well as limiting exports. Some
state inspectors lack cars to conduct on-site inspections, so
farmers must bring grain to them before shipping.
Selling farmland is also forbidden in Ukraine, a legacy of
its communist past. So fields remain cut up ``like
chessboards,'' said Georgiy Vaydanych, land manager for
Agrokultura, a Stockholm-based agricultural company that
rents 173,000 acres in many such villages. ``For the moment
we have 40,000 active landlords,'' Mr. Vaydanych said.
``Forty thousand!''
Making matters worse, paperwork is costly and many
villagers never officially inherit the farmland after their
parents die. ``There is uncertainty on how to farm this land,
because we have the dead souls in the middle of our fields,''
Mr. Vaydanych said, in a reference to Nikolai Gogol, whose
19th-century classic, ``Dead Souls,'' is required school
reading here.
Even as the crisis in the east intensifies, life in the
agricultural west remains much the same.
A dirt road straddling tilled fields leads into this
village, with potholes so deep that drivers zigzag past each
other. There are horse-drawn carts, roosters crowing, elderly
women in kerchiefs and a church painted pale green topped by
bulbous spires.
Few in this pro-European area of Ukraine are nostalgic for
Moscow. Still, Oleg Gusak, head of the village council, said
life had not improved.
``When it was a collective, the level of life was better,''
he said, explaining that it was once a larger operation that
harvested crops, had livestock and made clothing, furniture
and jams.
``People even came from other regions, because we had so
much work,'' he said, adding, ``Now, it's not the same.''
Trouble raising capital at reasonable prices makes it
difficult to start or expand farms.
``I have to pay up to 12 percent if I borrow in euros,''
said Taras Barshchovsky, an entrepreneur who founded T.B.
Fruit, which makes fruit juices and whose rented orchards
cover thousands of acres. He has expanded into Poland, where
he said he could borrow for less than 3 percent.
``Those who work with Ukrainian banks in hryvnias,'' the
national currency, ``they pay up to 20 percent or more. I
don't believe you can profit and return money on that
percentage,'' he added.
And while other former Soviet bloc neighbors like Hungary,
Romania and Poland began easing their land sale restrictions
after joining the European Union, Ukraine has repeatedly
delayed lifting its moratorium, considering the move
politically risky in its agrarian society. In 2013, the
government of Viktor Yanukovych, the deposed Ukrainian
leader, extended the moratorium until 2016, after he expected
to stand for re-election.
``I'm afraid if I sell my land in the future my children
will say their old grandfather drank away all their money,''
Hrynchyshyn Myroslaw, 62, said as he cleared a willow field
near another village.
With a laugh, he added: ``It depends how much you will pay
me. If there are enough zeros, you can pay me.''
Volodymyr Baran, 43, a tractor mechanic, said he would
never sell his six acres: ``The land is our bread.''
Such dynamics deter foreign investment, which has been
tepid for years. Despite some interest from China and
multinationals, large agricultural enterprises tend to be
Ukrainian owned, and recent prominent deals have been less
than they seemed. For example, Cargill paid a reported $200
million
for a stake in UkrLandFarming, an agricultural holding
company. But a Cargill spokeswoman emphasized that the shares
were collateral for a loan rather than a long-term
investment.
The rules make ``it so much more difficult to understand,
and to bring in investment,'' said David Sedik, a senior
official at the Food and Agriculture Organization of the
United Nations. ``It's not that a foreigner or a company has
to buy the land, but it breeds opaqueness in the sector. You
need transparent land laws.''
At his office, Mr. Vaydanych pulled out a village map and
showed how its 2,500 acres were divvied up among 507
villagers.
``Every field is split, by little, little plots,'' he
explained.
Being a land manager requires a political touch. Mr.
Vaydanych goes from village to village handing out favors,
fending off competitors trying to outbid his rental
contracts.
A village chief, he said, ``may call us and tell us, it's
the wintertime, we have a lot of snowfall, so give us a
forklift to clean the road. O.K., well, we do that.''
``He may say this electricity substation is broken so we
need urgently to repair it, or he's calling because the water
pump at school broke, so we replace it,'' he said. ``That's
the commitment that comes with the land.''
``I wouldn't be surprised by any request,'' Mr. Vaydanych
said. ``It is about keeping everyone happy. That's my work.''
Thank you so very much for your openness to this, Mr. Chairman. And Mr. Ranking Member, thank you for allotting me the time.