This paper briefly traces the main features of the transition process in the agricultural sectors of central and eastern European countries and the Russian Federation, and relates them to the challenges ahead. An overview of trends in agricultural production and consumption, trade and farm structurcs is followed by a discussion of prod ucer suppon measures (producer subsidy equivalents, PSEs) for certain transition countries. Finally, future agricultural policy challenges are examined, in particular that of creating and maintaining competitive conditions for agriculture and in the economy as a whole. Many transition countries seek accession to the European Union, and are giving priority to policies in line with that goal. In general, the challenges ahead are converging with those of OECD countries.
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