Farm management advisors are frequently motivated to improve their clients' farm performance by new technical knowledge and changed economic circumstances. Successful advice demands sound knowledge of all factors which influence the decision process. Judgements that rational farm management decisions can be made, based solely on new technology ignore farmers' personal objectives, resources and capabilities. Brazil's Government extension service was established post-war. University training was technically oriented with little emphasis on financial or farm management system implications, or the attitudes and objectives of farm families. By the 1980's the service was failing and in 1988 Federal funding to the States was abandoned. Results of this study indicate that many Brazilian extensionists were mistaken in their belief of the usefulness of the new technology for farmer needs. Public funding used for technology transfer and research was misdirected, suggesting graduate training may have been inappropriate. There are lessons for agricultural research, farm management teaching, extension and development in all countries.