This article examines the roles of the public and private sectors in a
gricultural extension. Extension services are classified according to
their economic characteristics to identify areas where opportunities f
or private (for-profit and nonprofit) participation will arise. The au
thor finds that commercialization of farm operations gives rise to dem
and for specialized client-and location-specific extension services th
at can be provided by private for-profit firms, although the main buye
rs will likely ne market-oriented medium and large farmers. Because of
market failures, some types of extension services will require public
funding-although nor necessarily public delivery. A critical governme
nt role in a pluralistic extension system would be to provide the appr
opriate regulatory framework to ensure fair competition and maintain q
uality standards.