Part of the gross capital employed in the distinctive activity of a factory farm.
All the elements immobile by nature, such as land and improvements are assigned to the land value.
Land is a differential capital characterized by the fact of being a production factor not susceptible to damage.
The improvements of the land are the investments that the entrepreneur has done in order to make the land productive, such as streets, repair of the ground (levelling, construction of dykes, draining), buildings (houses, livestock and machinery shelters, warehouses), tree plantations (orchards, vineyards, land containment systems) and fixed installations in general (derivation plants for irrigation water, greenhouses, etc…).
The improvements of the land are differentiated components of the capital and are susceptible to partial damage; they can indeed be used only for a limited number of years.
In businesses in which the owner has to pay a rent, land value is not entirely the property of the entrepreneur: in order for him to use it, he has to pay an annual fee.
Editor: Barbara PANCINO

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