Participatory programs are increasingly recognised as effective in assisting rural communities identify issues of concern, determine their needs, and draw in resources to enact social and environmental change. A fundamental assumption of these programs is that farmer knowledge is used and valued in the process of group interaction and social learning. The role of farmer knowledge in group learning in Australia is explored in this paper using case studies of Landcare and Prograze. In both case studies, group activity focused upon building landholder knowledge and skills for sustainable pasture management. Research findings suggest farmer knowledge can remain dormant unless critical factors in group learning and development are addressed. These include experiential learning, integrating information, effective facilitation, group autonomy and building ongoing relationships and learning opportunities.