After parliamentary elections and the formation of a new government, Lithuania declared the restoration of its independence from the USSR on March 11, 1990. Although Lithuania was not recognized as a separate state by the USSR and the world community until after the failed Moscow putsch of August 1991, the process of economic and political transformation began in 1990. The goal of the reforms is a democratic political system and a market-oriented economy. The agricultural and food industry has been emphasized in these reforms because of its historical significance and its current importance in the national economy. This report provides and overview of this industry leading up to and including 1989 so the context for the reforms and the potential consequences can be better understood. Emphasis is given to the structure of farming, agricultural production and productivity, food production and consumption, farm prices and profitability, and trade. Information presented on price reform decisions up to May 1991 is indicative of the type of change that is underway, but this process is continuing.