Abstract: In the later 1990”s, paid extension service of paddy breeding in dry soil and with wide spacing was undertaken under the participation of farmers in the irrigated area of Yinchuan. The malpractice of conventional extension model was the driving factor for the application of paid extension model. Farmers’ participation in the process of the extension of the technique enable them to have a sound understanding and command of the techniques, and have an improvement of comprehensive competencies, which in turn helps the change of attitude and practice, simulate the communication between farmers and extension workers, and build up the trust of farmers on extension workers. Economic benefits has been greatly enhanced with unit yield 100 kg over that from the traditional paddy breeding approach, that is RMB150 yuan more income increase.. Extension workers can have RMB 20 yuan as reward from farmers serviced.