1. The von Thünen Model Explains importance of proximity to market in the choice of crops on commercial farms Model was created before industrialization

2. von Thünen’s Assumptions ① The city is located centrally within an “Isolated State” which is self-sufficient and has no external influences. ② The Isolated State is surrounded by an unoccupied wilderness. ③ The land of the State is completely flat and has no rivers or mountains to interrupt the terrain.

3. von Thünen’s Assumptions ④ The soil quality and climate are consistent throughout the State. ⑤ Farmers in the Isolated State transport their own goods to market via oxcart, across land, directly to the central city. Therefore, there are no roads. ⑥ Farmers act to maximize profits.

4. Place each type of commercial agriculture where you think it belongs. Be able to defend your choice! -Livestock ranching -Dairy -City -Forest resources -Grain farming

6. Dairy and Intensive Farming Ring closest to city Vegetables, fruit, milk, and other dairy products must get to market quickly. There are no refrigerated oxcarts in 1826.

7. Forest Resources Timber and firewood Used for fuel and building materials Heavy and difficult to transport, so it is located as close to the city as possible.

8. Extensive Field Crops Grains for bread Lasts longer than dairy products Lighter than fuel, which reduces transportation costs – which means crops are located farther from the city.

9. Livestock Ranching Animals Self-transporting, so no cost! They can walk to the central city for sale or for butchering.

10. Wilderness Beyond the 4 th ring Too far from the central city for any type of agricultural product.

13. Bid-Rent Curve As distance from city center increases, cost of land goes down.

14. SIGNIFICANCE! As one gets closer to a city, the price of land increases. The farmers of the Isolated State balance the costs of transportation, land, and profit to produce the most cost-effective product for market.