During my period as a Scholar-in-Residence at the Progress & Poverty Institute, my research will focus on a collaborative project with Paul Forrester, on the economic theory of the factors of production. Economic theorists disagree regarding how to understand the factors of production. While classical political economists identified the three factors of land, labor, and capital, neo-classical economists reduced them to two by treating land as a subset of capital. We argue that this was a mistake and develop our own account of the three-factor model through a ‘hylomorphic’ account of capital goods, and by integrating the Austrian analysis of interest as arising from time preference. The revised three-factor model provides a more realistic picture of the production process and tracks important economic patterns like laws of return, elasticity, locationality, and substitutability.