# rent of land

**Definition**  
Rent of land is the portion of a commodity’s price that compensates the landowner for the use of the land’s natural produce. It represents a payment for the exclusive right to exploit the land’s resources, such as timber, grass, or other natural fruits, which would otherwise be freely gathered.

**Source Chapter**  
*The Wealth of Nations*, Book 1, Chapter 6.

**Context**  
Smith introduces rent of land after describing the transition to private property, noting that landlords “demand a rent even for its natural produce.” He explains that this rent becomes a component of the price of commodities like corn.

**Economic Domain**  
Distribution

**Smith’s Original Wording**  
> “When the land of any country has all become private property, the landlords… demand a rent even for its natural produce.”

**Modern Interpretation**  
Rent of land corresponds to economic rent in contemporary theory—the surplus payment to a factor of production (land) that exceeds its opportunity cost. It is a key element in the factor‑income distribution of national accounts.
