Cutler Concept of Ground Rent 1975

download Cutler Concept of Ground Rent 1975

of 19

Transcript of Cutler Concept of Ground Rent 1975

  • 7/27/2019 Cutler Concept of Ground Rent 1975

    1/19

    http://coa.sagepub.com/Critique of Anthropology

    http://coa.sagepub.com/content/2/4-5/72.citation

    The online version of this article can be found at:

    DOI: 10.1177/0308275X75001004031975 2: 72Critique of Anthropology

    Antony CutlerThe Concept of Cround-Rent and Capitalism in Agriculture

    Published by:

    http://www.sagepublications.com

    can be found at:Critique of AnthropologyAdditional services and information for

    http://coa.sagepub.com/cgi/alertsEmail Alerts:

    http://coa.sagepub.com/subscriptionsSubscriptions:

    http://www.sagepub.com/journalsReprints.navReprints:

    http://www.sagepub.com/journalsPermissions.navPermissions:

    What is This?

    - Jan 1, 1975Version of Record>>

    November 20, 2011at The John Rylands University Library, The University of Manchester oncoa.sagepub.comDownloaded from

    http://coa.sagepub.com/http://coa.sagepub.com/http://coa.sagepub.com/http://coa.sagepub.com/content/2/4-5/72.citationhttp://coa.sagepub.com/content/2/4-5/72.citationhttp://coa.sagepub.com/content/2/4-5/72.citationhttp://www.sagepublications.com/http://coa.sagepub.com/cgi/alertshttp://coa.sagepub.com/cgi/alertshttp://coa.sagepub.com/subscriptionshttp://coa.sagepub.com/subscriptionshttp://www.sagepub.com/journalsReprints.navhttp://www.sagepub.com/journalsReprints.navhttp://www.sagepub.com/journalsPermissions.navhttp://online.sagepub.com/site/sphelp/vorhelp.xhtmlhttp://online.sagepub.com/site/sphelp/vorhelp.xhtmlhttp://online.sagepub.com/site/sphelp/vorhelp.xhtmlhttp://coa.sagepub.com/content/2/4-5/72.full.pdfhttp://coa.sagepub.com/http://coa.sagepub.com/http://coa.sagepub.com/http://coa.sagepub.com/http://online.sagepub.com/site/sphelp/vorhelp.xhtmlhttp://coa.sagepub.com/content/2/4-5/72.full.pdfhttp://www.sagepub.com/journalsPermissions.navhttp://www.sagepub.com/journalsReprints.navhttp://coa.sagepub.com/subscriptionshttp://coa.sagepub.com/cgi/alertshttp://www.sagepublications.com/http://coa.sagepub.com/content/2/4-5/72.citationhttp://coa.sagepub.com/
  • 7/27/2019 Cutler Concept of Ground Rent 1975

    2/19

    72

    THE CONCEPT OF CROUND-RENTAND CAPITALISM INAGRICULTURE

    byAntony Cutler

    In the advanced capitalist countries the period of capitalist

    industrialisation has been,whatever the specific variants that

    this process has taken, one where the position of landovmers as

    a specific social class has consistently declined. On the other

    hand, in those nation-states subject to the domination of the

    advanced capitalist countries landowners flourish, land ownership

    is highly concentrated, rack-renting is the order of the day.

    Can the concept of gound-rent as it is elaborated in Capital

    elaborate the basis for the explanation of this contrast? To

    answer thic question it is necessary to approach the andmalies

    and ambiguities which haunt 1!,,-trxs own analysis.

    The ConceDt of Ground-Rent in CaDitall

    The concept of ground-rent is used in relation to two modes

    of production in Capital, thc feudal and the capitalist. In

    relation to the feudal mode of production ~round-rnt is a relation

    of production, i.e., it defines the mode in which the surplus-

    product is extracted by the ruling clans and more generally sets

    limits to the character of the labour process under the feudal

    mode. In contrast, in the capitalist mode pf production the mode

    of extraction of surplus-product is surplus-value and rent is a

    form of surplus-value.

    In the feudal mode of production ground-rent is a relation

    between the hicrarchised ruling class, the feudal nobility and the

    peasantry whereby the latter owe a portion of their surplus-product

    November 20, 2011at The John Rylands University Library, The University of Manchester oncoa.sagepub.comDownloaded from

    http://coa.sagepub.com/http://coa.sagepub.com/http://coa.sagepub.com/http://coa.sagepub.com/
  • 7/27/2019 Cutler Concept of Ground Rent 1975

    3/19

    73

    to the former. This relation is crucially characterised by

    an absence of any separation between the direct producers and the

    means of production. This is the case whatever form of rent is

    in operation for in the cases of rent in kind or in money the

    peasant remains the controller and supervisor of production, while

    in the case of labour rent the peasant uses his own means of

    production on the lords land. An important correlate of this

    relation is that rent under feudalism cannot by definition bo

    governed by any general mechanism of determination, there is no

    reason, for example, why the levels of rent in terms of surplus-

    product need be comparable in different areas. Furthermore, rent

    cannot be referred to any direct economic mechanism since while

    the reproduction of the peasantry would put an abstract limit on

    the levels of surplus-product extracted in the form of rent no

    economic mechanism could define the precise extent of rent.

    The conception of rent in the case of the capitalist mode of

    production is necessarily quite distinct. l1arx discusoes two forms

    of rent under the capitalist mode of production; form I, the only

    form of rent

    recognised byclassical

    economics,he follows the

    classical writers in calling differential rent, the second form

    which is specific to Marxs own argument he calls absolute ground-

    rent. Differential rent arises in any situation where there is

    an unequal product from two equal applications of capital where

    the organic composition io constant. Hero Marx explicitly echoes

    Ricardos formulation: Ricardo is right in the following observation:

    Rent is always the difference between the produce obtained by the

    November 20, 2011at The John Rylands University Library, The University of Manchester oncoa.sagepub.comDownloaded from

    http://coa.sagepub.com/http://coa.sagepub.com/http://coa.sagepub.com/http://coa.sagepub.com/
  • 7/27/2019 Cutler Concept of Ground Rent 1975

    4/19

    74

    employment of two equal quantities of capital and labour ..... (I~

    Differential rent then io not limited to any particular sphere

    of operationbeing applicable

    for

    exampleto raw

    materials,sources

    of energy and urban locations as well ag to agriculture. Equally,

    differential rent can take a plurality of distinct forms; it can

    go directly to a landlord, here the whole of the surplus-profit

    derived from conditions which allow for above average* productivity

    accrues to the landlord end the tenant is left with the average

    profit determined by capitalict competition; it can be directly

    appropriated by the owner of land insofar as the owner undertakes

    capitalist production, in this case the rent only appears as

    separate from profit in the formation of the purchase price of the

    land (2); finally the state can appropriate differential rent

    through exertinga

    monopolyoi

    landoi-nier~;hip (3).Under

    competitiveconditions only state or private lando~l!1ership have the effect of

    eqtialising profit rates and it is the case of private landovrnership

    which is assumed in Capital. What is thus clear concerning

    differential rent is that it is diametrically opposed to feudal

    ground-rent. Differential rent does imply a relation to an average

    rate of profit which will allow a consistent rate of rent in

    agriculture governed by the differential fertility of the soil and

    equally that this differential fertility will fom the basis for

    the capitalisation of rent as a form of revenue. In this :ense,

    differential ground-rent and the price of land do not fundamentally

    differ from the

    holdingof

    equities (4).Differential rent is for

    this reason not a relation of production but depends upon the

    formation of capitalist relations of production.

    November 20, 2011at The John Rylands University Library, The University of Manchester oncoa.sagepub.comDownloaded from

    http://coa.sagepub.com/http://coa.sagepub.com/http://coa.sagepub.com/http://coa.sagepub.com/
  • 7/27/2019 Cutler Concept of Ground Rent 1975

    5/19

    75

    The Classical economists had limited the concept of rent to

    differential rent but Marx introduces the concept of absolute

    ground-rent. Absolute ground rent is seen to derive from two

    heterogeneous sources, private land ol!1ers!p establishes a

    monopoly which enables an additional rent to be charged over and

    above differential rent which represents a monopoly price for

    agricultural commodities. The monopoly price, however, iR not subject

    simply to an extra-economic determination since it is equally

    based on the conditions of production in agriculture. Here Marx

    argues that the organic composition of capital is lower in

    agriculture than in the average of the other capitalist sectors

    of production. This means that the value of agricultural commodities

    exceeds their price of production. Under conditions of capitalist

    competition the above average profit generated in agriculture bythis low organic composition should be wiped out but as there is a

    monopoly in l:u1o !1ership the lanc~ov:~ner if able to retain this

    surplus-profit. The difference. between the value of agricultural

    commodities and their price of production is thus absolute ground-

    rent.

    In this analysis Marx seeks to outline a theory of monopoly

    pricing in the sphere of,a~riculture. However, the precise mode

    of application of this concept must be regarded as fallacious. The

    central problem in LSarxs argument concerns the determination of the

    limits of the monopoly price, i.e. why it should be set at the

    value of agricultural commodities. By being a monopoly in the sense

    in which Marx implies the term agriculture is not subject to constraints

    November 20, 2011at The John Rylands University Library, The University of Manchester oncoa.sagepub.comDownloaded from

    http://coa.sagepub.com/http://coa.sagepub.com/http://coa.sagepub.com/http://coa.sagepub.com/
  • 7/27/2019 Cutler Concept of Ground Rent 1975

    6/19

    76

    of economic competition. For this reason it is difficult to see

    why for example, agricultural commodities cannot be sold above

    their value. 14arx argues that the limit to absolute ground-rent

    must be found in the constraint exerted by foreign co.^~petition:

    But it may be asked: If landed property gives the poi:er to nell

    the product above its cost price, at its value, why does it not

    equally well xive the power to sell the product above its value,

    at an ::~bitrary monopoly price? On a small island, ,....hr~re there

    is no foreign trade in corn, the corn, food like every other

    product,could unquestionably be sold at a monopoly price, that is,

    at a price only limited by the state of demand, i.e., of demand,

    bac!~re~ by ability to pr,v, and according to the price level of the

    product supplied the magnitude and extent of this effective demand

    can very creatly.1 (5). The recourse to foreii7n competition, .

    hoi:ever, solves nothing; if there is to be free import of foreign

    agricultural commodities the result of competition will always be

    to set tht, market price of agricultural commodities at their value.

    Paradoxically the only way in which this argument could follow would

    be if import of foreiy agricultural commodities were limited to

    set the market price at the value of agricultural commodities in the

    home country. This, however, would push the determinant from the

    economic to the exercise bf state-power. (6)

    Croz.^.::-^e-a ar.~1 the Ca-~ital is To~_e of Production..

    The crucial distinction between nround-rent under the f eudal

    and capitalist modes of producticn is, therefore, that ground-rent

    is displaced from a relation of production to a form of surplus-

    value. The implications of this are that as ground-rent is a

    November 20, 2011at The John Rylands University Library, The University of Manchester oncoa.sagepub.comDownloaded from

    http://coa.sagepub.com/http://coa.sagepub.com/http://coa.sagepub.com/http://coa.sagepub.com/
  • 7/27/2019 Cutler Concept of Ground Rent 1975

    7/19

    77

    revenue it is necessarily subject to the regulation of state power.

    This situation, however, must be qualified with reference to the

    conditions of agricultural production prevailing within the advanced

    capitalist countries.

    The formation of a world market for agricultural commodities

    is a progressive effect of the penetration of capitalism in

    agriculture. National markets are protected by an element of

    differential rent applying on a worldscale,

    the location of land.

    Transport costs, therefore, clearly enter into the retarding effects

    on the formation of a world market. However, the development of

    a world market has the effect of increasing competition and lowering

    the price of agricultural commodities. This means that he retention

    of a monopoly price for agricultural commodities can only be effected

    by artificially maintaining a price above the world market price

    foragricultural commodities. Clearly, this does have various

    deleterious effects on the development of the capitalist mode of

    production in nation states.cadoPtin~ policies favouring landowners.

    The major effect will be that if agricultural commodities are sold

    at a price in excess of the competitive price the effect will be a

    rise in wages. As labourpower is reproduced with referenco to a

    set of commodities of which certain agricultural commodities are a

    key component (7) any increased price must be treated as a deduction

    from profits. Equally, the protection of the agricultural sphere

    involves the retention of a higher proportion of the work-force

    in agriculture which equally has the effect of tending to raise wages.

    November 20, 2011at The John Rylands University Library, The University of Manchester oncoa.sagepub.comDownloaded from

    http://coa.sagepub.com/http://coa.sagepub.com/http://coa.sagepub.com/http://coa.sagepub.com/
  • 7/27/2019 Cutler Concept of Ground Rent 1975

    8/19

    78

    It is clear, of course, that advanced capitalist countries have

    protected home agricultural production but this has not been accomp-

    anied by the protection of landowners. It has derived from attempts

    by the ruling class to cement anti-proletarian class alliances. (8).

    The dominance of industrial and latterly finance capital have

    thus made it impossible to retain the position of lando~~er3hip

    which characterised earlier phases of capitalist development.

    The L.oour-Froc^s^ in Capitalist A~-riculture

    A key aspect of the argument advanced by ~~arx on the question

    of absolute ground-rent concerns the consistent technical backward-

    ness w!1ch characterizes agricultural production,. However, if any

    meaningful ccntrast between the conditions of agriculture in the

    advanced capitalist countries and there dominated by imperialism

    is to be effected it i3 necessary to demonstrate the mode in which

    the development of capitalism in agriculture has led to certain

    crucial transformations in the labour process.

    The ccncepts analysing the labour process are developed by

    Varx in Part IV of Volume I of Capital. Here Marx counterposes

    in the sphere of industrial production the artisan labour process

    to that of capitalist industry. The labour processes differ crucially

    in that in the artisan labour process the constant position of the

    artisan results in the fact that transformations in the means of

    production are limited to those which reproduce the position of

    the artisan. For example, improvements in tools are compatible

    with the artisan labour process, the displacement of artisan labour

    by machinery combined with unskilled labour is not (9). The break

    November 20, 2011at The John Rylands University Library, The University of Manchester oncoa.sagepub.comDownloaded from

    http://coa.sagepub.com/http://coa.sagepub.com/http://coa.sagepub.com/http://coa.sagepub.com/
  • 7/27/2019 Cutler Concept of Ground Rent 1975

    9/19

    79

    with the artisan labour process has two crucial effects, the possibility

    is established of continuous entry of the fruits of scientific and

    technical research into production and equally the mechanisation of

    the labour process enables the labour to become continuous.

    This transformation is led by the induRtrial rphere since

    agriculture presents much greater intrinsic problems for the develop-

    ment of a capitalist labour process. The major problem is that

    certain key aspects of agricultural production remain given. For

    example, the character of the soil and weather conditions are

    obvious inescapable constraints. However, capitalist production in

    agriculture continuously tends to minimise this givenness, the

    giveneBB of the soil and weather being attacked by fertilizers, crop

    sprays and irrigation, tendencies towards the establishment of a

    continuous process being represented by the development of factory

    farming.

    From this point of view the artisan labour process remains totally

    dominant inthe Third World countries with the effect that agricultural

    yields remain far behind those prevalent in the advanced capitalist

    countries, the major contribution to greater yields being preciselyby those elements which transform the giveneso of the soil, irrigation

    and chcnical fertilizers. (10)

    The Peasantry within a Capitalist Mode of Production.

    If artisan production remains dominant within the agricultural

    sector of Third 3.!orld cou.!1tries they are equally characterized byan absence of complete separation between the direct producers

    November 20, 2011at The John Rylands University Library, The University of Manchester oncoa.sagepub.comDownloaded from

    http://coa.sagepub.com/http://coa.sagepub.com/http://coa.sagepub.com/http://coa.sagepub.com/
  • 7/27/2019 Cutler Concept of Ground Rent 1975

    10/19

    80

    and the means of production, in a broad sense the peasantry remains

    a crucial social class. The absence of this separation has the

    effect of limiting thesource

    of labouron

    the peasant farms to

    members of the family. Certain key effects follow from this

    situation.

    As the family is the source of labour, production is based not

    on the reproduction of labour-povser but on the reproduction of the

    labour of the unit of production.This,

    in

    particular,has a

    crucial effect on the level of ground-rent. In the case of capitalist

    agriculture wage-labour has to be remunerated at the current rate of

    reproduction of labour-potier, therefore if it is employed for any

    period beyond the normal working day the expenditure of capital

    must necessarily augment itself incrementally. Peasant production,

    on the other hand, because it utilises family labour and because

    its object is the reproduction of the labour of this unit makes

    no separation between necessary and surplus-labour. For this reason

    it is generally the case that the effective rate of remuneration

    of peasant labour is substantially beloa that of labour-power

    under comparable conditions. The family labour basis, therefore,

    is technically regressive since if the rate of remuneration is

    based on the fact that family labour costs nothing then the

    peasant producer must necessarily fall behind the capitalist farmer

    for whom rises in the rate of remuneration of labour-power constitute

    an incentive to displace labour-power with means of production.

    However, it is important to stress that peasant farming does

    not constitute a mode of production nor that it is intrinsically

    inimical to capitalism. In this respect, for example, authors

    following Chavanovs theory of pe:>..Ga.nt economv ~_1) have tended to

    November 20, 2011at The John Rylands University Library, The University of Manchester oncoa.sagepub.comDownloaded from

    http://coa.sagepub.com/http://coa.sagepub.com/http://coa.sagepub.com/http://coa.sagepub.com/
  • 7/27/2019 Cutler Concept of Ground Rent 1975

    11/19

    81

    see peasant farming as characterised by a cyclical differentiation

    rather than the differentiation between capitalist farmer and

    proletarian. (12) This is because following Chayanovs argument,

    the subsistence level and the amount of land cultivated is seen to

    depend on the ratio of working adults and children to dependent

    adults and children within the family. The position of a peasant

    unit of production would thus-depend upon a demographic cycle which

    would peak at the maximum ratio of dependents to non-dependents.

    However, in itself this arguments cannot be sufficient for an analysis

    of the peascntry. Chayanov correctly argues that the means of

    calculation are distinct in the case of the peasant unit so that

    for example, given that the labour of workers on the unit is the

    primary free resource, crops will be selected on the basis pf

    labour-intensity and particularly from the point of view of spreading

    labour over the whole year. (13) ChaSanovs object, however, is

    the analysis of the labour process in peasant agriculture. The

    retention of non-capitalist calculation precisely depends upon whether

    the object of reproduction of subsistence can be achieved without

    reference i,o the domination of the capitalist sector. The increasing

    entrance into the capitalist market has the effect that the peasants

    beoome dependent not on peasant calculation and the conditions of

    production on the peasant unit but rather on the relative prices

    of subsistence to cash crops. If it is impossible for the peasants

    to meet their own subsidence by labour devoted to tho production

    of subsistence crops then cultivation of cash crops is the necessary

    alternative, the higher the relative price of the subsistence crop

    the greater proportion of peasant labour has to be expended on the

    cash crop. In this context the demographic cycle can work to

    November 20, 2011at The John Rylands University Library, The University of Manchester oncoa.sagepub.comDownloaded from

    http://coa.sagepub.com/http://coa.sagepub.com/http://coa.sagepub.com/http://coa.sagepub.com/
  • 7/27/2019 Cutler Concept of Ground Rent 1975

    12/19

    82

    facilitato internal means of differentiation within tho peasantry

    since the development of capitalist competition with the peasant units

    will tend to provide conditions for the peasant unit at the pe!~kof the demo,,-raphic cycle to acquire more land and equally to exhaust

    the possibilities of peasant production thus combining peasant

    production with the hiring of ;.:ape-labour as a tr:msitional

    capitalist form. For this reason the internal analysis of the

    peasant labcur process is insufficient to draw any conclusion on the

    speed and character of differentiation of the peasantry.

    However, where peas;nt production survives the effect of the

    ~-plu8-1abcl~tiDe expended above that appropriate to capitalist

    conditions i7 to push up levels of rent. Of course, as Chayanov

    points out this statement must be qualified with reference to the

    relative scarcity of land; In areas where there is a vast amount

    of land, where net labour payment on peasant farms is no lower than

    i.tp.!,-r-s and where farms operate at optimal intensity, the peasant farm

    will, if it has to pay rent~ pay no more than capitalist farms, and

    more probably will take land only at lower amounts. In overpopulated

    arc:.s, however,in order to establish its internal equilibrium the

    peasant farm is obliged to force up intensification far above the

    opt i.rmlr.1, where payment in the peasant farms usual sectors is lower

    than the capitalist farms wages, the peasant farm will consider it

    worth,ihile to pay a much higher rent than the capitalist rent .....

    ~1C~ The excess rent derives from the capitalisation of the surplus-

    labour of the peasant over and above average capitalist conditions.

    November 20, 2011at The John Rylands University Library, The University of Manchester oncoa.sagepub.comDownloaded from

    http://coa.sagepub.com/http://coa.sagepub.com/http://coa.sagepub.com/http://coa.sagepub.com/
  • 7/27/2019 Cutler Concept of Ground Rent 1975

    13/19

    83

    It is clear that in the majority of Third World countries

    conditions of excess labour and of over-population do prevail,

    the

    problemremains as to

    whythe road taken

    bythe advance

    capitalist countries has not been taken. One crucial area here

    is the formation of the world market in industrial commodities.

    This has led to the transfer of the organic composition of capital

    prevailing in the advanced capitalist countries to the countries

    of the Third rlorld and consequently a tendency to raise the minimum

    levels of capital required to carry on capitalist production in

    various key industrial sectors. This statement must, horrever, be

    qualified in the sense that the industrial sector is not based upon

    a neo-classical search for optimal alternatives but is carried on

    on the basio of an advantage to individual units of the hieh rates

    of urban and rural an and

    ~1de:--e~pl(lYL1ent. (Capitalistindustrial-

    isation ic necessarily carried on by enterprises, therefore, there

    is no guarantee that the conditions of reproduction of the enter-

    prise will in any sense be equivalent to the conditions of expanded

    reproduction of industrial capital at the level of the total social

    capital where the limitation on the home market io clearly an

    obstacle.) (15) For this reason the conditions of relative over-

    populaion are sustained in the rural areas and these are precisely

    the conditions which tend to force sp rents.

    FO&dquo;l!!3 of Tc:~:we .

    The dominant forms of tenure emphasise the limitations on

    the separation between the direct producers and the means of

    production. On one hand, the existence of large estates is combined

    with the retention of peasant plots in particular used as a

    November 20, 2011at The John Rylands University Library, The University of Manchester oncoa.sagepub.comDownloaded from

    http://coa.sagepub.com/http://coa.sagepub.com/http://coa.sagepub.com/http://coa.sagepub.com/
  • 7/27/2019 Cutler Concept of Ground Rent 1975

    14/19

    84

    mechanism to keep sources of labour on the soil. Again the effect

    of peasant agriculture is to depress wages below the level of that

    necessary for the reproduction of labour-power andequally

    as

    peasant production is based on the reproduction of labour, engenders

    mnano of payment in kind which both increase levels of exploitation

    and limit the development of the home market.

    Share cropping, or what Marx calls metayage, exhibits another

    form of partial separation which 11?x:< treats as a transitional form

    of capitalist agriculture. ns a transitory form from the original

    form of rent to capitalist rent we may consider the metayer system,

    or share―cropping, uneer which the manager (farmer) furnishes

    labour (his ov;n or anot?1er! s), and also a portion of working capital

    and the landlord furnishes, aside from land, another portion of

    working capital (e.g. cattle), and the product is divided between

    tenant and landlord in definite proportions which vary from country

    to country. On the one hand, the share here appropriated by the

    landlord does not bear the pure form of rent. It may actually

    include interest on the capital advanced by him and an excess rent.

    It may also absorb practically the entire eurplus-labour of the

    farmer, or leave him a greater or smaller portion of this surplus-

    labour. But, essentially, rent no longer appears here as the normal

    form of surplus-value in general. On the one hand, the sharecropper

    whether he employs his oim or anothers labour 13 to lay a claim

    to a portion of the product not in his capacity as labourer, but

    as possessor of part of the instruments of labour, as hisown

    capitalist. On the other hand, the landlord claims his share not

    exclusively on the basis of his landownership, but also as lender

    November 20, 2011at The John Rylands University Library, The University of Manchester oncoa.sagepub.comDownloaded from

    http://coa.sagepub.com/http://coa.sagepub.com/http://coa.sagepub.com/http://coa.sagepub.com/
  • 7/27/2019 Cutler Concept of Ground Rent 1975

    15/19

    85

    of capital. (16) ,

    Althouch !(arx treats metayace as a transitional form this is

    in part because of his assumption that the tenant isa

    proto-

    capitalist tenant on the English lines. However, where metaya~e is

    the form of tenure and peasant production and calculation survives

    the result is an increase in the levels of rent for the reasons

    stated above and equally a form of tenure which encourages maximum

    exploitation. Under these conditions of metayage the landlord is

    able both to extract a surplus-product which could not be obtained

    under capitalict conditions of production with equal employment

    of capital and is equally able to extract the maximum price for

    subsistence products under conditions of surplus-population.

    Under these conditions then, metayage would tend to repraduce

    itsclf.

    Conclusion

    It is now possible to return to the question por-ed at the

    beyi;=in3 and. surest a tentative solution. The concept of absolute

    ground-rent was deployed in capital to analyse the conditions

    under which agricultural commodities could be exoluded from the

    formation of an average rate of profit under conditions of comp-

    etitive capitalism and how this surplus was appropriated by the

    landlords,. It iias demonstrated that the economic argument

    adduced by Marx were untenable for the General reason that the result

    of competitive conditions on a world scale would have to produce

    the same result continuously: viz~the sale of agricultural commodities

    at their value which was equally assumed to be consistently in

    excess of the price of production. The development of agriculture

    in the advanced capitalist countries is accompanied by a progressive

    November 20, 2011at The John Rylands University Library, The University of Manchester oncoa.sagepub.comDownloaded from

    http://coa.sagepub.com/http://coa.sagepub.com/http://coa.sagepub.com/http://coa.sagepub.com/
  • 7/27/2019 Cutler Concept of Ground Rent 1975

    16/19

    86

    weakening of the position of landlords (at least in the sphere of

    agriculture),and continuous increases of productivity of labour

    in agriculture.

    In advanced capitalist countries although tho pace and extent

    differed from one natiorr-Gtate to another the eradication of the

    peasantry was effected. In contrast the Third World* countries

    exhioit a quite distinct picture. Although separation from the

    meanr; of production remains incomplete, feudalism is also essentially

    eradicated. In respect of the nroblem of cround―rent, therefore,

    we C&dquo;L1!10~ be said to be dealing with feudal rent, for the conditions

    of tenure in general preclude a rir;ht to surplus-product of a

    1~~~1 kind other than that defined by capitalist contractual relations.

    On the other hand, it ic clear that peasant production is distinct

    from capitalist conditions of production both in term,; of the

    labour-process and the conditions of calculation. It is this

    distinction which forms the basis for an ecuivalent to Tiarxs

    absolute ground-rent thc landlord who rents land to a peasant is

    able to appropriate the sur;lus-labour-time that a peasant is willing

    to work for the same remuneration in use-values as a wa~e―labourer.

    This rurplus can be capitaliseci in the case of iiagc labour and

    expressed as a differential rent in the classical sense. For example,

    if the landlord under a metayage system provides capital to a peasant,

    the capitalisable surplus-labour could be compared vrith the return

    he could get from employinc labour-power using the sane capital:

    the la.1dlor. share of the crop would purchase a certain amount of

    labour-power. If, as we have argued, the product of this labour is

    below the price of the surplus product it constitutes a rent

    provided by the combination of the private ownership of land

    November 20, 2011at The John Rylands University Library, The University of Manchester oncoa.sagepub.comDownloaded from

    http://coa.sagepub.com/http://coa.sagepub.com/http://coa.sagepub.com/http://coa.sagepub.com/
  • 7/27/2019 Cutler Concept of Ground Rent 1975

    17/19

    87

    and partial separation of the direct producers from the means

    of production. The source of a rent distinct from that deriving

    from the differential fertility of the soil derives from the

    combination of capitalist relations of production dominating the

    reproduction of the mode of production with the limitation of the

    separation of the direct producers from the means of production.

    This tabsolutel rent thus derives from the comparison of the two .

    note of conditions.

    The domination of capitalist relations of production derive

    from the conditions imposed on the Third World* nations by the

    development of a capitalist world market in industrial and

    c.^ical tL~xal co^.r.~od_ tics, The conditions of surplus population

    created by this structure continually force up the prices of.

    arJricultural commodities and ecrually push up the surplus rent we

    have discussed, for the more the peasants enter into exchange with

    the landlords the more the surplus-labour time conditioned by the

    peasant node of organisation of the labour process can be appropriated.

    This obstacle to the development of a capitalist labour process is

    not in this sense distinct from the conditions under which peasant

    agriculture foujht a rearward action in the advanced capitalist

    countries,. The distinction lies in the fact that the conditions

    of capitalist production on a ,,;orld scale have accelerated the

    uneven development between the advanced capitalist nation-states

    and the subordinate bourgeois remimes of the Third ilorld. It

    is this uneven development which paradoxically counterposes the

    organic composition of capital of the advanced capitalist countries

    to pre-capitalist labour processes as means of extracting the bounty

    of peasant surplus-labour.

    November 20, 2011at The John Rylands University Library, The University of Manchester oncoa.sagepub.comDownloaded from

    http://coa.sagepub.com/http://coa.sagepub.com/http://coa.sagepub.com/http://coa.sagepub.com/
  • 7/27/2019 Cutler Concept of Ground Rent 1975

    18/19

    88

    Notes

    1. Karl Marx; Capital

    ,

    Vol. III ( Foreign Languages Publishing

    Houre: Moscow 1962) P. 634.

    2. In this case profits are not equalised, an example of this is

    the operation of land grants in 19th centuryAmerica.

    3. On this point see V.I Lenin TheAgrarian Programme of Social

    Democracy in the First Russian Revolution

    1905-1907.Collected Works Vol. 13 and B. Hindess Lenin and theAgrarian

    Question in the First Russian Revolution Theoretical Practice

    No. 6 May 1972.

    4. The price of land will be equal to theAnnual Rent 100 Rate ofInterest

    5. Karl Marx: Tneories of Surplus-Value Part Two (Lawrence andWishart: London 1969) P. 332.

    6. See on these points the critique of absolute rent presented

    byA. Emmanuel in Unequal Exchange (New Left Books London 1972)

    Ps218-9.

    7. Clearly only those commodities which figure in the reproduction

    of labour-power are relevant here, i.e. luxury commodities

    are excluded.

    8. The clearest examples are France and Japan.

    9. It is for this reason that distinctions between skilled and

    unskilled labour are necessarily ideological under the

    capitalist mode of production.

    10. Yields inAmerican agriculture for food grain crops (wheat and

    rice) are approximately six times the level attained in India,

    November 20, 2011at The John Rylands University Library, The University of Manchester oncoa.sagepub.comDownloaded from

    http://coa.sagepub.com/http://coa.sagepub.com/http://coa.sagepub.com/http://coa.sagepub.com/
  • 7/27/2019 Cutler Concept of Ground Rent 1975

    19/19

    89

    Notes

    see R. Revelle Food and Population ScientificAmerican Sept 1974,

    the authors estimate of the contribution to yield of differing

    elements appears on P. 165 of the article, irrigation gives

    the greatest contribution and chemical fertilisers come second.

    11. A.V. Chayanov: On the Theory of Peasant Economy (Edited by

    D. Thorner, B. Kerblay and R.E.F. Smith, R.D. Irwin Homewood

    Illinois 1966)

    12. For an attempt to apply Chayanovs theory in a Narodnik fashion

    see T. Shanin TheAwkward Class (Oxford University Press, 1972),

    13. Chayanov P. 40

    14. Ibid P. 235

    15. On this point see G. Kay Development and Underdevelopment

    (Maemillan London 1975) P. 130.

    16. Capital,

    Vol. III, P. 783.