APPENDIX I 



RENT 



IT may be useful here briefly to describe the nature of 

 rent in agriculture. Some land pays higher rent than 

 other. Such rent marks a superiority and greater pro- 

 ductiveness. 



Rent of land in agricultural cases is simply the price paid 

 for the service and hire of land, and it measures some advan- 

 tage over other land with which it is contrasted as regards 

 utility. The amount varies on different plots for several 

 reasons, mainly (i) superior quality or productiveness, (2) 

 accessibility and convenience or some other economic advan- 

 tage which renders it relatively more profitable. 



In the simplest case the rent will be the lowest rate as 

 determined by supply and demand. 



Superior fertility (productiveness) will command a higher 

 rate of rental in proportion to its higher yield. This superiority 

 of soil may be natural or it may be the result of outlay upon the 

 soil as in fertilizing, draining, etc. In the first case a higher 

 rent will arise from natural advantages, and in other cases it 

 may be due to expenditure upon the soil in order to render 

 it more productive : the higher rent is then regarded as 

 interest on capital sunk in the soil, and it is properly a return 

 on outlay of capital. 



Thus we have land which is more productive by nature's 

 gift of high fertility, and also from advantage of site or access, 

 water supply and other incidental advantages ; sometimes 

 from mineral wealth. These cases yield extra rent, but this 



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