Legal restraints on new vineyards in France, justified by a supposed scarcity of corn and excess of wine, indicate that viticulture there is currently more profitable than other cultivation only because law artificially restricts supply; without such restraints, the natural proportion of profits between wine and corn would be restored, and in fact vineyards tend to encourage, not hinder, careful corn cultivation in wine provinces.
By Adam Smith, from La Richesse des nations
Key Arguments
- Smith notes that the anxiety of proprietors of old vineyards in France 'to prevent the planting of any new ones' suggests, from the perspective of experienced cultivators, that viticulture 'is at present in that country more profitable than any other.'
- At the same time, their efforts to obtain legal restraints show that they believe 'this superior profit can last no longer than the laws which at present restrain the free cultivation of the vine,' recognizing that free entry would drive profits down toward the natural proportion relative to corn and pasture.
- He recounts that in 1731 French vineyard proprietors secured 'an order of council, prohibiting both the planting of new vineyards, and the renewal of these old ones, of which the cultivation had been interrupted for two years, without a particular permission from the king,' which would be granted only after an official certified 'that it was incapable of any other culture.'
- The stated rationale—'the scarcity of corn and pasture, and the superabundance of wine'—is rejected by Smith: had the superabundance been real, it would naturally have reduced profits and 'without any order of council, have effectually prevented the plantation of new vineyards.'
- Against the claim that vineyards cause scarcity of corn, Smith observes that 'corn is nowhere in France more carefully cultivated than in the wine provinces, where the land is fit for producing it,' listing Burgundy, Guienne, and Upper Languedoc as examples.
- The numerous hands employed in viticulture actually 'necessarily encourage' corn cultivation 'by affording a ready market for its produce,' so reducing the number of wine cultivators 'is surely a most unpromising expedient for encouraging the cultivation of corn.'
- He likens the policy to 'the policy which would promote agriculture, by discouraging manufactures,' underscoring his view that such restrictions are economically perverse and serve only to protect existing vineyard rents from competition.
Source Quotes
Their writers on agriculture, indeed, the lovers and promoters of high cultivation, seem generally disposed to decide with Columella in favour of the vineyard. In France, the anxiety of the proprietors of the old vineyards to prevent the planting of any new ones, seems to favour their opinion, and to indicate a consciousness in those who must have the experience, that this species of cultivation is at present in that country more profitable than any other. It seems, at the same time, however, to indicate another opinion, that this superior profit can last no longer than the laws which at present restrain the free cultivation of the vine.
In France, the anxiety of the proprietors of the old vineyards to prevent the planting of any new ones, seems to favour their opinion, and to indicate a consciousness in those who must have the experience, that this species of cultivation is at present in that country more profitable than any other. It seems, at the same time, however, to indicate another opinion, that this superior profit can last no longer than the laws which at present restrain the free cultivation of the vine. In 1731, they obtained an order of council, prohibiting both the planting of new vineyards, and the renewal of these old ones, of which the cultivation had been interrupted for two years, without a particular permission from the king, to be granted only in consequence of an information from the intendant of the province, certifying that he had examined the land, and that it was incapable of any other culture.
It seems, at the same time, however, to indicate another opinion, that this superior profit can last no longer than the laws which at present restrain the free cultivation of the vine. In 1731, they obtained an order of council, prohibiting both the planting of new vineyards, and the renewal of these old ones, of which the cultivation had been interrupted for two years, without a particular permission from the king, to be granted only in consequence of an information from the intendant of the province, certifying that he had examined the land, and that it was incapable of any other culture. The pretence of this order was the scarcity of corn and pasture, and the superabundance of wine.
In 1731, they obtained an order of council, prohibiting both the planting of new vineyards, and the renewal of these old ones, of which the cultivation had been interrupted for two years, without a particular permission from the king, to be granted only in consequence of an information from the intendant of the province, certifying that he had examined the land, and that it was incapable of any other culture. The pretence of this order was the scarcity of corn and pasture, and the superabundance of wine. But had this superabundance been real, it would, without any order of council, have effectually prevented the plantation of new vineyards, by reducing the profits of this species of cultivation below their natural proportion to those of corn and pasture. With regard to the supposed scarcity of corn occasioned by the multiplication of vineyards, corn is nowhere in France more carefully cultivated than in the wine provinces, where the land is fit for producing it: as in Burgundy, Guienne, and the Upper Languedoc.
But had this superabundance been real, it would, without any order of council, have effectually prevented the plantation of new vineyards, by reducing the profits of this species of cultivation below their natural proportion to those of corn and pasture. With regard to the supposed scarcity of corn occasioned by the multiplication of vineyards, corn is nowhere in France more carefully cultivated than in the wine provinces, where the land is fit for producing it: as in Burgundy, Guienne, and the Upper Languedoc. The numerous hands employed in the one species of cultivation necessarily encourage the other, by affording a ready market for its produce.
With regard to the supposed scarcity of corn occasioned by the multiplication of vineyards, corn is nowhere in France more carefully cultivated than in the wine provinces, where the land is fit for producing it: as in Burgundy, Guienne, and the Upper Languedoc. The numerous hands employed in the one species of cultivation necessarily encourage the other, by affording a ready market for its produce. To diminish the number of those who are capable of paying it, is surely a most unpromising expedient for encouraging the cultivation of corn.
The numerous hands employed in the one species of cultivation necessarily encourage the other, by affording a ready market for its produce. To diminish the number of those who are capable of paying it, is surely a most unpromising expedient for encouraging the cultivation of corn. It is like the policy which would promote agriculture, by discouraging manufactures. The rent and profit of those productions, therefore, which require either a greater original expense of improvement in order to fit the land for them, or a greater annual expense of cultivation, though often much superior to those of corn and pasture, yet when they do no more than compensate such extraordinary expense, are in reality regulated by the rent and profit of those common crops.
Key Concepts
- In France, the anxiety of the proprietors of the old vineyards to prevent the planting of any new ones, seems to favour their opinion, and to indicate a consciousness in those who must have the experience, that this species of cultivation is at present in that country more profitable than any other.
- It seems, at the same time, however, to indicate another opinion, that this superior profit can last no longer than the laws which at present restrain the free cultivation of the vine.
- In 1731, they obtained an order of council, prohibiting both the planting of new vineyards, and the renewal of these old ones, of which the cultivation had been interrupted for two years, without a particular permission from the king, to be granted only in consequence of an information from the intendant of the province, certifying that he had examined the land, and that it was incapable of any other culture.
- The pretence of this order was the scarcity of corn and pasture, and the superabundance of wine. But had this superabundance been real, it would, without any order of council, have effectually prevented the plantation of new vineyards, by reducing the profits of this species of cultivation below their natural proportion to those of corn and pasture.
- corn is nowhere in France more carefully cultivated than in the wine provinces, where the land is fit for producing it: as in Burgundy, Guienne, and the Upper Languedoc.
- The numerous hands employed in the one species of cultivation necessarily encourage the other, by affording a ready market for its produce.
- To diminish the number of those who are capable of paying it, is surely a most unpromising expedient for encouraging the cultivation of corn. It is like the policy which would promote agriculture, by discouraging manufactures.
Context
Within his discussion of vineyards and exceptional rents, Smith examines French policies restricting vine cultivation, using them to illustrate how legal barriers create temporary excessive profits and how such mercantilist‑style interventions misunderstand the complementary relationship between different types of agriculture.