ABSTRACT Farmers have conducted their own research from before plants and animals were domesticated. However, with the advent of scientifically based agriculture their influence on technology development waned. Farming systems research-extension (FSRE) methodology was a response to a concern that Green Revolution technology was bypassing many small, resource-poor farmers in the Third World. Based on the FSRE-generated concepts of domains (research, recommendation and diffusion), the unique nature of on-farm research, and its demands on statistical analysis are examined. On-farm trials differ from on-station trials in two important ways: 1) the objectives are usually different, and 2) the variablity of on-farm data is more complex and must be addressed with greater sophistication. Four analysis of variance (ANOVA) models for on-farm research data are examined and the relationship of ANOVA to modified stability analysis (MSA) is discussed. Means of incorporating larger farms (both developed and developing countries) into, an organized research and extension effort are examined. Finally, the integration of large and small farms into a combined research and extension effort is discussed.