The lower saving due to smaller size of holding has resulted in lower investment on farm assets causing the lower capital formation on sample farms in Haryana. The farm investment through borrowed fund was found to be highest on medium farms followed by large and small farms. The higher cost of living, expenditure on education of the children and other family social obligations has also adversely affected the long term investment on the farms. The investment on productive farm assets was having positive relationship with income earnings and size of operational holdings. This calls for higher public investment on agricultural infrastructure development in Haryana.