The Extension System in the United States is being challenged to adjust to changing social and economic conditions both domestically and globally. Extension farm management programs are directly impacted by these changes. The major changes include: (1) decreased public funding for extension, (2) more emphasis on the environment and the sustainability of agriculture, (3) decreased farm subsidies, (4) farm policy that focuses on a more market oriented agricultural economy, and (5) changes in farm structure. Smaller extension farm management staffs are forcing more emphasis on program priorities. These will include: (1) develop programs targeted to small, medium and large farms, (2) interdisciplinary systems approach that focuses on sustainability and risk management, (3) better trained extension agents with multi-county or area assignments, (4) increased linkages with the private sector, (5) private grant and/or contract funding, and (6) user fees.