Principles of Political Economy: Abridged with Critical, Bibliographical, and Explanatory Notes, and a Sketch of the History of Political Economy
John Stuart Mill · en
Let us, however, suppose that there were a validity in this objection,
which can by no means be conceded to it; that, when the demand of the
community had forced up food to such a price as would remunerate the
expense of producing it from a certain quality of soil, it happened
nevertheless that all the soil of that quality was withheld from
cultivation, the increase of produce, which the wants of society required,
would for the time be obtained wholly (as it always is partially), not by
an extension of cultivation, but by an increased application of labor and
capital to land already cultivated.
Now we have already seen that this increased application of capital, other
things being unaltered, is always attended with a smaller proportional
return. The rise of price enables measures to be taken for increasing the
produce, which could not have been taken with profit at the previous
price. The farmer uses more expensive manures, or manures land which he
formerly left to nature; or procures lime or marl from a distance, as a
dressing for the soil; or pulverizes or weeds it more thoroughly; or
drains, irrigates, or subsoils portions of it, which at former prices
would not have paid the cost of the operation; and so forth. The farmer or
improver will only consider whether the outlay he makes for the purpose
will be returned to him with the ordinary profit, and not whether any
surplus will remain for rent. Even, therefore, if it were the fact that
there is never any _land_ taken into cultivation, for which rent, and that
too of an amount worth taking into consideration, was not paid, it would
be true, nevertheless, that there is always some _agricultural capital_
which pays no rent, because it returns nothing beyond the ordinary rate of
profit: this capital being the portion of capital last applied—that to
which the last addition to the produce was due; or (to express the
essentials of the case in one phrase) that which is applied in the least
favorable circumstances. But the same amount of demand and the same price,
which enable this least productive portion of capital barely to replace
itself with the ordinary profit, enable every other portion to yield a
surplus proportioned to the advantage it possesses. And this surplus it is
which competition enables the landlord to appropriate.