Von Thunen’s Model of Agricultural Land Use

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The Von Thünen Model The Von Thünen model of agricultural land use was created by German farmer and amateur economist J.H. Von Thünen. His model was created before industrialization

Ø As one gets closer to a city, the price of land increases. Ø   The farmers of the Isolated State balance the cost of transportation, land, and profit and produce the most cost- effective product for market. Ø      In the real world, things don't happen as they would in a model. The Von Thünen model is an excellent illustration of the balance between land cost and transportation costs. Ø      As one gets closer to a city, the price of land increases.

Ø Four rings of agricultural activity surrounding the city. In this ‘Isolated State’ Von Thünen hypothesized that the following pattern would develop: Ø      Four rings of agricultural activity surrounding the city. o       1. Dairying and intensive farming occur in the ring closest to the city. Since vegetables, fruit, milk and other dairy products must get to market quickly, they would be produced close to the city in the ‘milkshed’ area (remember, we don't have refrigerated oxcarts!)

Ø      2. Timber and firewood would be produced for fuel and building materials in the second zone. o       Before industrialization (and coal power), wood was a very important fuel for heating and cooking. Wood is very heavy and difficult to transport so it is located as close to the city as possible.

Ø      3. The third zone consists of extensive fields crops such as grains for bread. o       Since grains last longer than dairy products and are much lighter than fuel, reducing transport costs, they can be located further from the city.

Ø      4. Ranching is located in the final ring surrounding the central city. o       Animals can be raised far from the city because they are self-transporting. Animals can walk to the central city for sale or for butchering.

Ø      5. Beyond the fourth ring lies the unoccupied wilderness, (hinterland) which is too great a distance from the central city for any type of agricultural product.

Factors influencing location of Agriculture • Climate and natural environment • Culture • Economic factors Urban market High transportation cost items (vegetables, eggs, dairy, flowers) Intensive land use – high land rent Medium transportation cost items (corn, soybeans, mixed farming, logging) More extensive land use – medium rent DISCUSSION: * Von Thünen developed his model in 1826. Is it still relevant today? * Are transportation costs still an important factor in where certain products are raised today? Lowest transportation cost items (wheat, livestock ranching) Most extensive land use – lowest land rent Simplified von Thünen model of agricultural land use (1826)

Contains six assumptions There is only one market available, self-sufficient with no outside influence. All farmers are market oriented, producing goods for sale. (Not subsistence.) The physical environment is uniform; there are no rivers or mountains. All points at equal distances from the market have equal access to the market. All farmers act to maximize profits. The dietary preferences of the population are those of Germanic Europeans.

Land rent The main concept is land rent or land value, which will decrease as one gets farther away from central markets. Rent is highest in the closest proximity to urban markets. (Bid-Rent Theory) Thus, agricultural products that have intensive land use, have high transportation costs and were in great demand would be located close to urban markets.

Major concepts: Distance from the city Preservation of food Amount of space

So………. Dairying and gardening of fruits and vegetables would be closer to the urban market while… Timber and firewood for fuel and building materials would be in the second zone. Mixed farming, commercial grain and orchards and Extensive cattle ranching would be located farther away. Transportation is cheap: the animals can walk to the city for butchering.

Why? Some products spoiled more quickly, needed more sensitive transportation, or generate higher prices at market These products mean the farmer can afford higher land rent.

It does not always look the same:

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