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# Agricultural Capital

## Definition

Capital employed in the improvement, cultivation, and management of land, mines, and fisheries. Agricultural capital encompasses both fixed capital (instruments of husbandry, land improvements) and circulating capital (seeds, labour, livestock) used in primary production activities.

## Source Chapter

Book II, Chapter 5

## Context

Smith identifies agricultural capital as the most productive form of capital employment, arguing that it puts into motion the greatest quantity of productive labour and adds the most value to annual produce. He emphasizes agriculture's unique characteristic of working with nature to produce value.

## Economic Domain

Production

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