Meaning: This quote is from the renowned economist David Ricardo and it pertains to the concept of economic rent in relation to agricultural stock and land cultivation. Ricardo was a prominent figure in classical economics and made significant contributions to the understanding of economic principles, particularly in the area of rent theory.

In this quote, Ricardo is discussing the conditions under which economic rent exists in the context of agricultural production. Economic rent is a concept in economics that refers to the income earned from a resource that exceeds the cost needed to bring that resource into production. In the case of agricultural land, economic rent is the income earned by landowners that exceeds the cost of bringing the land into production.

Ricardo's quote suggests that when the profits of agricultural stock and the costs associated with land cultivation are equal to the value of the entire produce, there is no economic rent. This implies that economic rent arises when the income from agricultural production exceeds the total costs involved in the production process.

To further understand this concept, it is essential to delve into the components mentioned by Ricardo. The "usual and ordinary rate of profits of agricultural stock" refers to the standard level of return or profit that agricultural stockholders would expect to receive from their investments in agricultural activities. This includes the income generated from the sale of agricultural products and any other returns on investment in agricultural assets.

The "outgoings belonging to the cultivation of land" encompasses all the expenses and costs associated with the process of cultivating and maintaining agricultural land. This may include costs such as labor, seeds, fertilizers, machinery, and other inputs required for agricultural production.

The "value of the whole produce" refers to the total value of the agricultural output or the revenue generated from the sale of all the agricultural products produced on the land.

When the profits and outgoings are in equilibrium with the value of the produce, it indicates that there is no surplus income remaining after covering all the costs of production. In this situation, there is no economic rent because the entire value of the produce is absorbed by the costs and profits, leaving no excess income to be claimed as rent.

Ricardo's quote reflects the classical economic understanding of rent as a surplus earned by landowners due to the scarcity of land and the differential productivity of different plots of land. It also highlights the relationship between profits, costs, and the value of produce in determining the existence of economic rent in the context of agricultural land.

Overall, this quote serves as a succinct articulation of the conditions necessary for the emergence of economic rent in the agricultural sector, as outlined by David Ricardo, and it provides valuable insights into the principles of rent theory in classical economics.