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# Farmer's Profit

## Definition

The return to the agricultural entrepreneur for the use of capital and management in farming operations. This profit must be sufficient to compensate for the risk and effort involved in cultivation and to provide a return comparable to other forms of investment.

## Source Chapter

Book I, Chapter 11

## Context

Smith analyzes how farmers' profits are determined by the productivity of the land and the efficiency of cultivation, and how these profits must be sufficient to maintain and improve the stock employed in agriculture.

## Economic Domain

Distribution

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