The institutions and practices of agricultural extension in Australia are changing to meet the changing needs of rural people and communities. Issues and challenges facing rural people include the declining relative economic importance of agriculture; the declining agricultural workforce; and the shift in agriculture from a purely production orientation to a more holistic view that considers broad trade issues, sustainability, marketing requirements, and the dependence of agriculture on other parts of the economy. With trends toward smaller government and client payment for services, rural people are becoming consultants and participants in delivery of extension services. The role of extension professionals is also changing to incorporate new features: focus on measurable outcomes and accountability, facilitation of group processes, systems orientation, working within a program on limited projects, working with collaborators from other technical disciplines and organizations, and moving between roles in the public and private sectors. The Rural Extension Centre (REC), established in 1993 as a joint initiative of the Queensland Department of Primary Industries and the University of Queensland, provides professional training and facilitates research in support of rural extension. A case study focuses on REC in relation to key future strategies for rural people and extension workers: (1) willingness to adapt to rapid change; (2) self-reliance and self-direction as a learner; (3) action orientation concerned with goals and outcomes; (4) collaboration; (5) monitoring and evaluation; and (6) modeling constructive behaviors. Contains 12 references. (SV)