YOU SAID:

there once was a farmer who lived on a rock he said he was living in a house

INTO JAPANESE

彼は家に住んでいたと言った岩に住んでいた農民がいた

BACK INTO ENGLISH

There was a farmer who lived on a rock that said he lived at home

INTO JAPANESE

彼は家に住んでいたと言った岩の上に住んでいた農民がいました

BACK INTO ENGLISH

There was a farmer who lived on a rock that said he lived at home