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Differential Rent under Socialism
 

Differential Rent under Socialism, a form of additional net income of agricultural cooperatives (collective farms), an income that results from the higher productivity, with the same labour investment on more fertile and better situated land plots, or from differences in the productivities of successive amounts of labour input in the same area. The existence of commoditymoney relations, state socialist property (belonging to all the people) and the specifics of collective farm-and-cooperative property results in transformation of the additional net income of cooperatives into rent. The differential rent under socialism differs radically from capitalist rent. In socialist society there is no room for the social and class antagonisms in rent relations which exist under capitalism between land- and capital owners, on the one hand, and hired workers, on the other. The differential rent expresses the relations between society and cooperative enterprises concerning the additional net income, and relations of comradely cooperation and mutual assistance between the working class and collective farmers. The differential rent exists in two forms. Differential rent I is the additional net income obtained from differences in the productivity of identical labour inputs in equal land plots of different fertility and location. Most of this income is appropriated by the state and used for the benefit of society as a whole, above all for the planned development of agriculture. Differential rent I is collected by the state through purchasing prices, differentiation of amounts purchased, and through income tax. Differential rent II is the additional net income resulting from different productivities of successive labour inputs on the same plot of land. The increasing 87 productivity of labour in the context of scientific and technical progress results in a steady increase of the amount and rate of differential rent II. Most of it remains at the cooperative and is used to expand production and raise the incomes of the cooperative members.

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