Because food is always in demand and land almost everywhere yields more food than is needed to maintain the labour and replace the stock (with ordinary profit) required to bring that food to market, all food‑producing land, even poor pasture, normally affords some rent, which rises with both the fertility of the land and the reduction of labour needed to tend it.
By Adam Smith, from La Richesse des nations
Key Arguments
- Human beings, 'like all other animals, naturally multiply in proportion to the means of their subsistence,' so 'food is always more or less in demand' and can always 'purchase or command a greater or smaller quantity of labour.'
- Land 'in almost any situation, produces a greater quantity of food than what is sufficient to maintain all the labour necessary for bringing it to market, in the most liberal way in which that labour is ever maintained.'
- The surplus of food is 'always more than sufficient to replace the stock which employed that labour, together with its profits. Something, therefore, always remains for a rent to the landlord.'
- Even 'The most desert moors in Norway and Scotland produce some sort of pasture for cattle,' and the milk and increase of those cattle are 'more than sufficient, not only to maintain all the labour necessary for tending them, and to pay the ordinary profit to the farmer or the owner of the herd or flock, but to afford some small rent to the landlord.'
- As pasture improves, 'The rent increases in proportion to the goodness of the pasture. The same extent of ground not only maintains a greater number of cattle, but as they are brought within a smaller compass, less labour becomes requisite to tend them, and to collect their produce.'
- In such improved pasture, 'The landlord gains both ways; by the increase of the produce, and by the diminution of the labour which must be maintained out of it.'
Source Quotes
PART I.—Of the Produce of Land which always affords Rent. As men, like all other animals, naturally multiply in proportion to the means of their subsistence, food is always more or less in demand. It can always purchase or command a greater or smaller quantity of labour, and somebody can always be found who is willing to do something in order to obtain it.
As men, like all other animals, naturally multiply in proportion to the means of their subsistence, food is always more or less in demand. It can always purchase or command a greater or smaller quantity of labour, and somebody can always be found who is willing to do something in order to obtain it. The quantity of labour, indeed, which it can purchase, is not always equal to what it could maintain, if managed in the most economical manner, on account of the high wages which are sometimes given to labour; but it can always purchase such a quantity of labour as it can maintain, according to the rate at which that sort of labour is commonly maintained in the neighbourhood.
The quantity of labour, indeed, which it can purchase, is not always equal to what it could maintain, if managed in the most economical manner, on account of the high wages which are sometimes given to labour; but it can always purchase such a quantity of labour as it can maintain, according to the rate at which that sort of labour is commonly maintained in the neighbourhood. But land, in almost any situation, produces a greater quantity of food than what is sufficient to maintain all the labour necessary for bringing it to market, in the most liberal way in which that labour is ever maintained. The surplus, too, is always more than sufficient to replace the stock which employed that labour, together with its profits.
But land, in almost any situation, produces a greater quantity of food than what is sufficient to maintain all the labour necessary for bringing it to market, in the most liberal way in which that labour is ever maintained. The surplus, too, is always more than sufficient to replace the stock which employed that labour, together with its profits. Something, therefore, always remains for a rent to the landlord. The most desert moors in Norway and Scotland produce some sort of pasture for cattle, of which the milk and the increase are always more than sufficient, not only to maintain all the labour necessary for tending them, and to pay the ordinary profit to the farmer or the owner of the herd or flock, but to afford some small rent to the landlord.
Something, therefore, always remains for a rent to the landlord. The most desert moors in Norway and Scotland produce some sort of pasture for cattle, of which the milk and the increase are always more than sufficient, not only to maintain all the labour necessary for tending them, and to pay the ordinary profit to the farmer or the owner of the herd or flock, but to afford some small rent to the landlord. The rent increases in proportion to the goodness of the pasture.
The most desert moors in Norway and Scotland produce some sort of pasture for cattle, of which the milk and the increase are always more than sufficient, not only to maintain all the labour necessary for tending them, and to pay the ordinary profit to the farmer or the owner of the herd or flock, but to afford some small rent to the landlord. The rent increases in proportion to the goodness of the pasture. The same extent of ground not only maintains a greater number of cattle, but as they are brought within a smaller compass, less labour becomes requisite to tend them, and to collect their produce.
The same extent of ground not only maintains a greater number of cattle, but as they are brought within a smaller compass, less labour becomes requisite to tend them, and to collect their produce. The landlord gains both ways; by the increase of the produce, and by the diminution of the labour which must be maintained out of it. The rent of land not only varies with its fertility, whatever be its produce, but with its situation, whatever be its fertility.
Key Concepts
- As men, like all other animals, naturally multiply in proportion to the means of their subsistence, food is always more or less in demand.
- it can always purchase or command a greater or smaller quantity of labour, and somebody can always be found who is willing to do something in order to obtain it.
- land, in almost any situation, produces a greater quantity of food than what is sufficient to maintain all the labour necessary for bringing it to market, in the most liberal way in which that labour is ever maintained.
- The surplus, too, is always more than sufficient to replace the stock which employed that labour, together with its profits. Something, therefore, always remains for a rent to the landlord.
- The most desert moors in Norway and Scotland produce some sort of pasture for cattle
- The rent increases in proportion to the goodness of the pasture.
- The landlord gains both ways; by the increase of the produce, and by the diminution of the labour which must be maintained out of it.
Context
Beginning of Part I on the produce of land which always affords rent, where Smith explains why food‑producing land yields a surplus over wages and profit that necessarily becomes rent, using desert moors and better pasture as examples.