The following report contains a description of version two of an econometric model of the New Zealand pastoral livestock sector of the New Zealand economy. This description should be viewed as a further development of the 'preliminary' model (or version one) by Laing and Zwart (1981), published as AERU Discussion Paper No. 54. The current report builds on the earlier paper by refining data and specification aspects as well as extending the scope of the model to include farm income and investment.