Theories of Surplus Value, Part III, Chapter 21 - Part 21

Explaining why accumulation is not just an accumulation of variable-capital, Marx writes, 

“Let us suppose for example that a part of the surplus product of the farmer is exchanged for a part of the surplus product of the machine manufacturer. It is then possible that the latter will convert the corn into variable capital and employ more workers, directly or indirectly. On the other hand, the farmer has converted a part of his surplus product into constant capital, and it is possible that, as a result of this conversion, he will discharge some of his old workers instead of taking on new ones. The farmer may cultivate more land. In this case, a part of his corn will be converted not into wages, but into constant capital, etc.” (p 250) 

So, if the machine manufacturer produces 12 machines, they may require the value of 8 of these machines to be able to replace the wood, steel and so on used in the production of those 12 machines. They may require the value of 2 machines to be able to employ workers again, in the following year. A further machine's value may be required to provide them with the revenue required to cover their own personal consumption, in the year ahead. That leaves them with one further machine, and the value from that can enable them to buy additional materials, and employ additional labour-power, so as to build an increased quantity of machines. But, to do that, they must be able to first sell the twelfth machine. If the farmer is looking to expand their own production, then, just as the machine maker had this 12th machine available, so the farmer may have a 100 kilos surplus of grain, after they have sold all the grain required to cover the value of their own means of production, wages and personal consumption. 

The farmer might then exchange this surplus 100 kilos of grain for a machine. The machine maker now has an additional 100 kilos of grain, which they can use to employ additional workers, and to trade for additional materials, so that, next year, they may be able to produce 13 rather than 12 machines. But, as Marx sets out, the farmer, who now puts this machine to work, may require fewer workers, expend less capital as variable-capital, if the level of production remains the same. They will employ capital as fixed capital rather than variable-capital. On the other hand, the farmer might continue to employ the same amount of labour, and so the same amount of variable-capital, and same number of workers will cultivate a larger area of land. They will then need to plant additional seeds, use additional fertiliser and so on, so that rather than an accumulation of variable-capital, there is an accumulation of circulating constant capital. 

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