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# Capital of the Farmer

## Definition

The financial resources employed by agricultural producers for cultivation,
including funds for seeds, equipment, livestock, and labor necessary for
crop production.

## Source Chapter

Book IV, Chapter 5

## Context

Smith emphasizes that the true cost of bounties includes not just the
government payments but also the capital invested by farmers, which must be
adequately compensated for the trade to be genuinely beneficial.

## Economic Domain

Production

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