In agricultural experiments, neighbour effects from the adjacent units pays a significant role in the precise comparison among treatment effects. In this paper, the analytical procedure in agricultural experiments under block design setup when neighbour effects also affects the response of a particular plot of a block has been explained. Here, neighbour effects up to distance 2 (second order) have been considered. The method of analysis has been illustrated using hypothetical data for 11 genotypes. The result shows the significance of incorporating all the neighbour effects up to distance 2 in the analysis. Further, multiple range comparison among genotype effects in the presence of all other effects using Tukey-Kramer test was performed using SAS 9.3