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Ricardo states that rent is paid to the landlord for the ‘original and indestructible’ power of the soil. But this is not correct. Fertility of land is not original but the result of human effort, it is also destructible.

The fertility of piece of land is reduced by constant cultivation. Fertility can be increased by applying scientific and modern method of cultivation. Therefore, there is nothing called original and indestructible power of the soil.

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(2) The order of cultivation is wrong:

The order of cultivation, as mentioned by Ricardo, has been criticised by Carey, an American economist. Carey points out that it is wrong to suppose the cultivation of land goes on the descending order of fertility.

Situation is perhaps more important than fertility so far as order of cultivation is concerned. Experience shows in a new island people cultivate that grade of land first which is nearer the human habitation, with developed means of transport.

(3) Rent also enters price:

It follows from the Ricardian theory that rent does not enter into price. Price of wheat tends to be equal to the cost of production on the marginal land. Marginal land does not pay rent. Hence rent, not being a part of cost, does not determine price. Rent is price- determined and not-price determining.

This point of view has not been accepted by modern writers. The payment that an individual producer or farmer makes for the use of land is included in the cost of production. Thus rent enters into price, if we look at the matter from the angle of an individual producer.

(4) The ‘Scarcity rent’ is ignored by Ricardo:

Ricardo gives an explanation of differential rent but ignores the ‘Scarcity rent’. Scarcity rent results from scarcity of land. Even if all lands were equally fertile, rent would arise due to the inelasticity of supply of land.

(5) No rent land is difficult to find:

According to Ricardo the marginal land is no rent land. In actual life it is very difficult to find a no rent land. Every plot of land has rent. If a land will yield no rent it will not be cultivated at all.

(6) Rent is not paid for the use of land alone:

Rent paid to any factor whose supply is fixed in relation to demand. Any factor of production earns rent if its supply is less elastic in relation to its demand. So rent is not a monopoly of land. Modern economists defined it as transfer earning. Rent therefore, accrues to all the factors of production.

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