By accepting the idea that land is acceptably defined as one type of capital good, Kelso played into the hands of the very economists who spent a good deal of their careers using the two-factor model of economies to defend the status quo and the idea that resources are scarce. I have long been surprised that Mortimer Adler did not recognize this inconsistency when the two combined energy to write on the subject. Nature is not produced by labor nor by the application of the capital goods produced by labor.
Nature has, then, a zero cost of production in terms of labor and capital.
Take the housing market for example. It is composed of numerous markets functioning simultaneously. Interest rates are normally equal. Labor costs are normally equal. Materials costs and transport costs are normally equal.