1. Von Thünen’s Model

2. Introduction
The Von Thünen Model is used to help explain the importance of proximity to market in the choice of crops on commercial farms.
The model explains and predicts agricultural land use patterns.
It was created by Johann Heinrich von Thünen, a 19th century (Pre-Industrial Revolution) German farmer and economist.

3. Johann Heinrich von Thünen
He lived from
Wrote the model in 1826 in a treatise called The Isolated State.

4. Assumptions
His treatise, The Isolated State, made several assumptions:
The city is located centrally within an "Isolated State" which is self sufficient and has no external influences.
The Isolated State is surrounded by an unoccupied wilderness.
The land of the State is completely flat and has no rivers or mountains to interrupt the terrain.

5. Assumptions
The soil quality and climate are consistent throughout the State.
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.
Farmers act to maximize profits.

6. The Model
The central marketplace is surrounded by agricultural activity zones that are in concentric rings.
Each concentric ring represents a different type of agriculture.
The farming activities in the rings closer to the city are more intensive, while those further from the city are more extensive.

7. Formula R = Y(p-c) - Yfm R = Rent per unit of land.
Y = Yield per unit of land.
p = market price per unit of yield.
c = Average production costs per unit of yield.
m = Distance from market (in kilometers or miles).
f = Freight rate per unit of yield and unit of distance.

8. The Rings
1st ring: Horticulture and dairying. These products do not need extensive land, are expensive to transport, and spoil quickly. Therefore, this type of farming is profitable closer to the city.
2nd ring: Forestry. Wood was a very important fuel for heating and cooking and is very heavy and difficult to transport, so it is located near the city.

9. The Rings
3rd ring: Various crops and pasture. More land is needed for these activities and rent is cheaper. Also, products are much lighter, reducing transportation costs.
4th ring: Ranching needs extensive land and transportation was relatively cheap because animals could walk themselves to the city for slaughter.

10.                                                 
Thünen's model: the black dot represents a city; 1 (white) dairy and market gardening; 2 (green) forest for fuel; 3 (yellow) grains and field crops; 4 (red) ranching; the outer, dark green area represents wilderness where agriculture is not profitable

14. Criticisms Von Thünen did not take into consideration the following:
Site (the physical characteristics of a place)
Variations in topography
Quality of soil
Different modes of transportation
Changes in the demand or price of a commodity
Social customs and government policies