Standing on the threshold of a new decade, Texas agriculture is faced with three major problems. The first of these problems is the imperative need for a sound soil and water conservation program. Texas has been struggling with this problem for fifty years and has made some progress toward its solution. During the war, however, it was an all-out production of food regardless of cost, either in terms of dollars or resources. As a result, the conservation problem is more acute today than ever before. The second problem is that farm production is out of balance. Lucrative prices for oil and grain crops, plus the increasing shortage of farm labor, turned thousands of farmers from the more stable diversified farm program which had been built up during the '30s. Now, they are again faced with quotas and acreage allotments. This calls for necessarily early and probably extensive readjustment of the entire agricultural production program. The third major change in the agricultural picture is the rapid industrialization of Texas during and since the war. This increase in urban population in this state means an increased market right at the farmer's door for more livestock, dairy, poultry, fruit, and vegetable production. Fortunately, the solution of these three problems is found in one answer. Pasture grass, forage crops, and legumes provide the best means of soil and water conservation and soil building. Inclusion of these crops in a diversified and balanced cropping program will solve the problem of marketing quotas and acreage allotments. Marketing through livestock will provide the abundance of these foods which is needed to meet the growing demands of Texas markets.