You're probably right, there. I'd just tell you that land is simply a type of fixed capital, you would say that's just the buildings and other improvements on the land, I'd say those improvements wouldn't be very much without the land they're on, you'd say that the land is still separate from the actual fixed capital, I would point to all the other types of capital that include land in their definition, such as "natural capital," and eventually we would just throw up our hands and call the other one an idiot.

So let's skip all of that. If you define capital as "the material property needed to produce something," then land is included. If you define capital as "the already-produced durable goods that are used in production of goods or services." then yes, land is excluded. Obviously I prefer the broader first definition, you the more narrow second one.

But even using your definition, the three factors of trade, "land, labor and capital" must all be privately owned for free trade to occur.