ABSTRACTAfter tracing the origins of the concept of “extension”, this paper reviews the main relevant economic concepts (public and private goods; rival/non-rival products; excludability; free riding; externalities; moral hazard) and their implications for the opportunities and constraints faced by private extension, whether profitoriented or non-profit. Appendix 1 presents detailed case studies from countriesin which major change in extension practice has recently occurred (Ecuador, Guatemala, Thailand, Jamaica and the Netherlands). Drawing on these, its main conclusions are: that extension by commercial companies has commonly been associated with input supply and with their ability to capture part of the benefits of extension through input or output markets. Whilst there are notable examples in which private companies (usually processors/marketers of single commodities) have worked extensively with smallholders, economic factors clearly orient themtowards medium/large-scale farmers in areas of good infrastructure. that, whilst farmers’ associations (FAs) have been widely promoted in the North, their strengths in developing countries are usually associated with marketed commodities, though in some cases they service a range of crops on an area basis. Cases are noted in which FAs have acted as a “watch dog” on relations between commercial companies and farmers. Key issues are how FAs and government relate to each other; how far associations of large-scalefarmers can also cater for smallholders, and how the emergence of FAs canbe promoted.

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