Privatization of
Agricultural
Extension

Privatization of Agricultural Extension
Privatization of Agricultural Extension
Privatization of Agricultural Extension may be
defined as the services rendered in the area of
agriculture and allied sectors by extension personnel
working in private agencies or organizations for
which farmers are expected to pay a fee (or free)
and it can be viewed as supplementary and
complimentary to public extension services.
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Privatization of Agricultural Extension
Need for Privatization of Agricultural Extension
• Declining trend in government expenditure in public
extension due to heavy financial burden
• Perception of public extension service as less effective in
meeting the current needs of the farmers
• A shift in agriculture from subsistence level to
commercialized agribusiness
• To meet the challenges of globalization and liberalization
of farm sector
• Demand of the farmers for specialized knowledge,
information and assistance
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Privatization of Agricultural Extension
Characteristics of Private Extension System
Objectives
• Private extension mainly concern with maximum possible
profit through advisory services
Target group
• Private extension mostly concentrates on big commercial
farmers
Clients
• Clients are more committed and careful about extension
services

Privatization of Agricultural Extension
Characteristics of Private Extension System
Offerings
• Profit oriented services include not only technology
transfer but also supply of critical inputs
• Offerings are based on seasonal needs and convenience
of farmers
Technologies
• Transfers location specific and demand driven
technologies
• Technologies are specialized and costly but profitable
Organizations
• Private extension personnel are more accountable to
clients and highly motivated
• They are professionally sound , upgrades their knowledge
and technical know-how

Privatization of Agricultural Extension
Characteristics of Private Extension System
Funding
• Gets funds from farmers’ contribution and developmental
agencies
Extension service
• Advisory nature of service
Methods
• Mostly adopts personal contact methods
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Privatization of Agricultural Extension
Strategies for Privatizing Extension
• Commercialization of extension services
• Introducing contract extension system
• Introducing share cropping system
• Giving partnership rights and more responsibility to
private sector and NGOs
• Gradual withdrawal of public extension system
• Creating and strengthening farmers groups and
cooperatives
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Privatization of Agricultural Extension
How Farmers Can Contribute
• Farmers can pay a fee for each visit of extension agent or
for each other service provided
• A levy can be charged on certain agricultural products
from which agricultural research and extension are
financed
• Costs can be met from membership fees paid to a
farmers’ association
• The extension service can receive a specified portion of
extra income farmer earns as a result of advice given by
extension agent
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Privatization of Agricultural Extension
Private Extension System : Advantages
• Advice from a privatized system may be more effective
because the farmer can select an adviser who is best
able to help
• The farmer is likely to prepare questions more carefully in
order to make best use of adviser’s time
• Farmer may be more inclined to follow advice which he
or she has paid for
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Privatization of Agricultural Extension
Private Extension System : Disadvantages
• Privatization of extension services may hamper the free flow
of information
• Commercial interests of private agencies are likely to
jeopardize the efforts by public research and extension
systems towards eco-friendly and sustainable agriculture
• Human resource development role of organizing, motivating
and guiding farmers for empowerment may be sidelined
• Contact between farmers and extension agents may decline
• May increase the regional imbalance
• Small and medium farmers may be eventually displaced from
commercial production
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