Theories of Surplus Value, Part II, Chapter 8 - Part 54

Marx then sets out two situations where this worst land would yield rent. Marx here begins an analysis of absolute and differential rent, and their interaction. His initial calculations are based on a proportional relation of rent to fertility, which he modifies in subsequent examples.

Marx does not make clear the payment of absolute rent as opposed to differential rent in this passage. The basis of absolute rent is the lower organic composition of capital in agriculture relative to manufacturing industry, which means, in aggregate, agricultural exchange-values exceed prices of production. That determines the level of absolute rent with differential rent being levied on top of it.

The value of wheat produced on the previous worst land, was £1200 for 3600 kilos = £0.333 per kilo. It previously produced no differential rent, but only absolute rent. If with the new production, the value of a kilo of wheat is higher than £0.333 per kilo, which is the price of production for wheat on the new worst land, that would require that all the other land was proportionally less fertile.

Its not the low fertility of the new worst land which explains why it pays rent, but the relatively higher fertility of the other lands. In other words, its not absolute fertility that determines rent, but relative fertility.

The previous worst land paid absolute rent, not differential rent, and that it didn't pay more rent, was due to the fact that other land was relatively more fertile compared to it.

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