A Danish action research approach to the development of strategic consultancy to farmm anagers is presented. The development principles adopted include separate investigations of the content and process of strategic consultancy resulting in the formulation of a development matrix and a procedure for knowledge transformations. The project activities were carried out by a self-organised team group with participants from both consultancy and research organisations. The produced knowledge and strategic tools have been tested in a number of farm cases by local consultants and the implemented evaluation programme indicates that the needs of farmers have been fulfilled and the local consultants have increased their strategic competences.