Capital III, Chapter 39 - Part 11

Differential rent could only disappear if the differences in fertility between different pieces of land disappeared, for example, if the introduction of ever greater amounts of capital investment, and the application of science and technology were able to neutralise the differences in natural fertility.

“From the beginning to the middle of the 18th century, England's grain prices constantly fell in spite of the falling prices of gold and silver, while at the same time (viewing this entire period as a whole) there was an increase in rent, in the over-all amount of rent, in the area of cultivated land, in agricultural production, and in population. This corresponds to Table I taken in conjunction with Table II in an ascending line, but in such a way that the worst land A is either improved or eliminated from the grain-producing area; however, this does not mean that it was not used for other agricultural or industrial purposes.” (p 660)

Table 1

Type of Soil	Product		Capital Advanced £'s	Profit		Rent
	Kilos	£'s		Kilos	£'s	Kilos	£'s
A B C D	1.00 2.00 3.00 4.00	60.00 120.00 180.00 240.00	50.00 50.00 50.00 50.00	0.167 1.167 2.167 3.167	10.00 70.00 130.00 190.00	— 1.00 2.00 3.00	— 60.00 120.00 180.00
Total	10.00	600.00	200.00	6.667	400.00	6 .00	360.00

Table 2

Type of Soil	Product		Capital Invested £'s	Profit		Rent		Price of Production per Kilo £'s
	Kilos	£'s		Kilos	£'s	Kilos	£'s
A A' B B' B" C D	1.33 1.66 2.00 2.33 2.66 3.00 4.00	60.00 75.00 90.00 105.00 120.00 135.00 180.00	50.00 50.00 50.00 50.00 50.00 50.00 50.00	0.22 0.56 0.89 1.22 1.56 1.89 2.89	10.00 25.00 40.00 55.00 70.00 85.00 130.00	— 0.33 0.66 1.00 1.33 1.66 2.66	— 15.00 30.00 45.00 60.00 75.00 120.00	45.00 36.00 30.00 25.71 22.50 20.00 15.00
Total	17.00	765.00	350.00	9.23	480.00	7.66	345.00

But, at the beginning of the 19th century, until around 1815, rents increased steadily, the total amount of rent increased, the total area cultivated increased, in response to rising population and demand, causing a steady rise in prices. This is consistent with a move from the most fertile to the least fertile land.

The reason for falling prices in the 18th century, can be viewed from two angles. Firstly, agricultural production, under feudalism, had been geared to direct production, which only needed to meet the needs of the peasant family. They farmed where they lived, which was not necessarily the most fertile soil available. Its only the growth of capitalist farming that seeks out the most fertile soil, in order to reduce costs, and maximise profits, in producing for a growing market.

Secondly, this same growth of capitalist farming goes along with the agricultural revolution of the 18th century. It means productivity rises sharply, but also, enclosures of previously common land, bring new land into cultivation, and woodland is cleared that introduces more fertile soil than some of that previously used in production.

“In Petty's and D' Avenant's time, farmers and landowners complained about improvements and the bringing into cultivation of new land; the rent on better lands decreased, and the total amount of rent increased through the extension of the area of land yielding rent.” (p 660)

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