A new era of farming is evolving in Kentucky. Resulting primarily from the loss of medium-sized operations, there has been a decline in the total number of farms. The real value of farmland dropped 16% in Kentucky between 1981 and 1985. More farmers are seeking off-farm employment in order to continue family operations. Similarly, more farmers have returned to a tenant status to continue to farm. These trends will continue along with a "back to basics" approach to farming emphasizing reduced inputs, lower costs, diversification, and new market development. County extension offices can help farmers examine their financial situation including itemizing assets, debt to asset ratios, cash flow, debt service, future projections, and long-range planning. Extension offices can help farmers reorganize their finances by prioritizing loans, establishing more realistic budgets, and discussing alternative methods of payment with creditors. State land grant universities provide farm management programs, options for alternative commodities, programs for farm families, and rural development efforts. Rural development strategies include encouraging farm-related enterprises, technical/managerial assistance for rural entrepreneurs, improving rural services, and natural resource management. Community organizations that can help farmers include schools, churches, farm organizations, chambers of commerce, human service organizations, job services, health agencies, and volunteer groups. (NEC)