An economic study dealing with that portion of Soviet grain output delivered to the government up to one-half of annual output is presented. Estimates are made of the allocation of government grain resources among current domestic uses, exports, and stockpiling, in 1940 and all postwar years. The estimates are derived from the open literature available at the beginning of October 1964, and consider data on output of grain products, grain storage capacity, rail shipments of grain, and human consumption of grain and the foods likely to be substituted for it in periods of austerity or abundance potatoes and livestock products. Government policy with respect to the volume and allocation of procured grain has an immense impact upon the health of the agricultural economy and the living standards of both the farm and nonfarm population. A key element in policy is the attitude toward reserves--the extent to which other objectives are sacrificed to accumulate them, or are served in the short term by running them down. Another element of growing importance is the extent to which the government assumes the responsibility for redistributing grain supply within the agricultural sector. This report attempts to shed light on both of these questions.