The renormalized projection operator technique for nonlinear stochastic equations. III A technique is described for deriving the moment equations of a nonlinear stochastic system with a random forcing term. The nonlinear term is then linearized by means of minimizing the mean-square error between nonlinear and linear terms. The traditional derivation of the Fokker-Planck equation for the conditional probability density, and hence the moment equations, is bypassed.