AbstractRecently a variety of ways to finance extension has emerged mainly as a result of the tendency to privatize government services and the increasing role, commercial companies play in agricultural research and extension. In many countries the extension service is either provided or funded by the Ministry of Agriculture. The government-funded extension is likely to focus its activities on public good activities which the market place is unlikely to provide. Decisions on the privatization of agricultural extension are often based on very limited knowledge about the consequences of such a change. There is more experience of privatization in industrial countries than in developing countries. But of course, Extension administrators may have to consider whether the recommendations of a consultant from an industrial country are really valid in their situation.