Changing Incentives for Agricultural Extension – a Review of Privatised Extension in Practice

The Agricultural Research and Extension Network is sponsored by the UK Department for International Development (DFID) The opinions expressed in this paper do not necessarily reflect those of DFID. We are happy for this material to be reproduced on a not-for-profit basis. The Network Coordinator would appreciate receiving details of any use of this material in training, research or programme design, implementation or evaluation. Abstract This paper summarises a recent AgREN email discussion on privatised extension. The discussion highlighted the fact that private extension delivery is subject to a range of interpretations. A number of experiences in both industrialised and developing countries provide opportunities for examining the advantages and limitations of a privatisation strategy for extension. The examples include instances of purely market-based extension service, extension service linked to the private provision of inputs or purchase of outputs, cost-recovery schemes for public services, and public programmes that provide a partial subsidy for private extension providers. No single model is adequate to describe private extension, and the empirical evidence illustrates a range of experience regarding the adequacy of private providers, the ability of farmers to take advantage of a privatised system, and the capacity of governments to manage the transition. Research findings • Private extension is not a single entity, but includes a wide range of modalities, from the spontaneous emergence of private markets for certain types of advice and service to carefully guided public support for the development of private extension provision. • A key to understanding private extension is the fact that it is possible to separate the provision of funding from the provision of service. • Although a 'privatised' extension service may require significant public support, the most significant change is the development of a new incentive system, in which the quality and content of extension provision is more responsive to farmers' priorities. • If privatised extension is to make a contribution, it will not embody the replacement of a monolithic public extension system by a similarly undifferentiated private system; instead, it will allow the development of a range of extension modalities and funding strategies. Policy implications • The transition to privatised extension modalities, with improved incentives, takes a significant amount of time and investment, and policymakers should prepare appropriate long-term plans. • Private extension provision will only be effective if there are well-trained personnel who are willing and able to respond to farmers' requirements; considerable public sector …