Using a recently re-discovered text by Alexander Chayanov, this article argues that while demographic differentiation may lead to stratification, this is, for a variety of reasons, mostly temporary and does not generally result in the formation of antagonistic rural classes. At the same time there is also the far more deep-rooted phenomenon of market-induced differentiation. This latter type stems from, and reflects, capital’s ability to create and bridge price differentials, mostly through long-distance trading and food engineering.