This study deals with the aggregate investment expenditure on farm buildings. It includes an econometric analysis of investment demand for farm buildings and related underlying variables. Aggregate time-series data are used in the study.

Three levels of aggregation are used in estimating demand functions: national, regional and state. The demand functions estimated are for annual expenditures on new farm buildings and remodeling of old farm buildings-both housing and service buildings.

The important variables identified by the study and included in the national demand relationship are net farm income, gross farm income, the rate of interest on new farm mortgages, the ratio of long-term assets to long-term debts and a time-trend. The same variables were significant in regional analyses. However, net farm income was not included in the analysis' because of lack of data. All variables used in regional analyses were significant in the state models. An additional variable, farm size, was significant in demand functions for certain states.