A method of making a liquid fuel from agricultural waste which may be animal manure, includes admixing agricultural waste with at least one material selected from the group consisting of hydrogen gas and water, at elevated pressure heating a mixture to about 300.degree. C. to 400.degree. C. for a predetermined time, subsequently cooling the mixture, and subsequently separating gas from liquid. The process produces a liquid fuel having a high heating BTU value per pound of fuel. The water preferably functions as both a solvent and the hydrogen donor for said agricultural waste. Corresponding apparatus is provided.