European countries fell in between, with land in the United Kingdom about twice as abundant as on the continent. These differences in endowments were reflected in massive differences in factor prices. In Japan, a worker had to work nearly 2,000 days to buy a hectare of land, while his counterpart in the United States needed to work only one-tenth of that time.
First, they reduce the profitability of all forms of agricultural investment, including land improvements, irrigation, animals, and buildings. Second, they may cause farmers to allocate whatever investment funds are available away from mechanical inputs. This trend will be stronger the more expensive and long-lived the mechanical inputs are and the easier it is to produce other forms of capital (such as land improvements) by hand.

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European countries fell in between, with land in the United Kingdom about twice as abundant as on the continent. These differences in endowments were reflected in massive differences in factor prices. In Japan, a worker had to work nearly 2,000 days to buy a hectare of land, while his counterpart in the United States needed to work only one-tenth of that time.
First, they reduce the profitability of all forms of agricultural investment, including land improvements, irrigation, animals, and buildings. Second, they may cause farmers to allocate whatever investment funds are available away from mechanical inputs. This trend will be stronger the more expensive and long-lived the mechanical inputs are and the easier it is to produce other forms of capital (such as land improvements) by hand.

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