688 B
688 B
Agricultural Surplus
Definition
The excess produce from agricultural land beyond what is required to maintain the farmers, laborers, and livestock necessary for cultivation. This surplus forms the basis for rent payments to landlords and supports non-agricultural economic activities.
Source Chapter
Book I, Chapter 11
Context
Smith argues that rent is fundamentally based on agricultural surplus, as it represents the portion of production that remains after all necessary costs of cultivation have been met.
Economic Domain
Production