Earlier studies have shown that although large quantities of agricultural residues are generated on small farms, it was difficult to economically justify use of conventional anaerobic digestion technology, such as used for sewage sludge digestion. A simple, unmixed, earthen-supported structure appeared to be capable of producing significant quantities of biogas at a cost that would make it competitive with many existing fuels. The goal of this study was to define and demonstrate a methane fermentation technology that could be practical and economically feasible on small farms. This study provides the first long term, large scale (reactor volumes of 34 m3) parallel testing of the major theory, design, construction, and operation of a low cost approach to animal manure fermentation as compared to the more costly and complex designs. The main objectives were to define the lower limits for successful fermentor operation in terms of mixing, insulation, temperature, feed rate, and management requirements in a cold climate with both pilot scale and full scale fermentors. Over a period of four years, innovative fermentation processes for animal manures were developed from theoretical concept to successful full scale demonstration. Reactors were sized for 50 to 65 dairy animals, or for the one-family dairy size. The results show that a small farm biogas generation system that should be widely applicable and economically feasible was operated successfully for nearly two years. Although this low cost system out-performed the completely mixed unit throughout the study, perhaps the greatest advantage of this approach is its ease of modification, operation, and maintenance.