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Abstract
Since the beginning of human civilization, the land has been creating certain utilities which satisfy human
needs. When the dangerous side effects of industrial agriculture have occurred intrinsic land utilities are
being discovered anew. They have a nature of public goods and constitute a hard core of the new agriculture
paradigm. Despite irreversible accumulation of capital in the anthropogenic environment many new utilities
of the land come into existence without additional capital and labour outlay. Since they are public goods,
they are paid from taxes in great measure and then by the subsidies for agriculture of CAP. This way an
intrinsic land utility takes a form of a financial product and can be called “intrinsic productivity” of land.
According to the “induced innovation model of agricultural development” there exist mechanisms for this
sector’s participation in contributing to economic development as well as in sharing its benefits. Nonetheless,
inefficiencies of the market that distort market signals, constitute a barrier of the latter process. Therefore,
so-called “surplus drainage” from agriculture takes place. Author claims that it is possible to objectively
measure a “surplus drainage” from agriculture as a result of a market failure, i.e. information asymmetry.
For that reason the drainage has to be compensated to correct this failure. The mentioned premises imply
that the CAP’s subsidies should not be perceived as the political rents according to its classical definition.
Only a part of subsidies left after subtracting a value of “surplus drainage” and a compensation of public
goods has a hallmark of the rent. A valuation of these values is an important scientific challenge.