1. Von Thunen’s Model of Agricultural Land Use

2. 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.

3. Bid-Rent Theory Hard concept!!
The further you are from the “best location” the more the rent is
So, beach front hotels cost more than hotels 2 blocks from the beach
Retail locations close to Hanes Mall are more expensive
Distribution centers close to the airport have higher rent

4. Von Thunen Model: The first location theory - 1826
A concentric model – same center with larger diameter circles

5. 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.

6. Contains six assumptions
By definition – models are simplified to illustrate a concept. Most models make assume certain factors to be uniform.
There is only one market available – which is the city (defined as center of trade)
All farmers are market oriented – selling their goods in the one market
The physical environment is uniform – no rivers or mountains to disrupt trade. Later is a drawing showing the effect of rivers and a 2nd market

7. Contains six assumptions
By definition – models are simplified to illustrate a concept. Most models make assume certain factors to be uniform.
4. All points at equal distances to make condition equal for everyone
5. All farmers act to maximize profits. – no morals or values difference
6. The dietary preferences of the population are those of Germanic Europeans. – von Thunen was German. The model doesn’t account for non-German diets or customs

8. Major concepts: Distance from the city Preservation of food
Think Bid-rent and transportation cost
Preservation of food
Can the crop be transported with spoiling
Amount of space
Bid-rent – closer is more expensive

9. 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 – wood is needed constantly for warmth and cooking
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.

10. 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.

11. How does relative location affect land-use patterns
Von Thunen
Effect
Explanation
Intensive land – use near market
High Profit needed to pay rent
Wood and perishable / fragile products near market
High (Frequent) transportation to nearby market
Extensive agriculture (grain / grazing land) at the periphery
Low land rent or low transportation costs

12. Reasons Profitable options decrease with distance from the market
Rent differences reflects different values of distance
Production Costs + Transportation Costs = economic margin for a crop
Greater the transport cost the less rent a farmer can afford

13. Contemporary Variables
More efficient transportation
Transportation cost no longer proportional to costs
Firewood not a factor for heating
Technology has reduced perish-ability refrigeration

14. It doesn’t always look the same:
Modifications to the model to account for a physical disruption or second market center

15. Assume: NY is the only market – The above is 2 examples of how the US would satisfy the von Thunen model on the national scale.

16. Compare the national von Thunen model to the Whittlesey agricultural regions

17. How would this look for Europe?
If London was the only market, what crops would be grown in which countries? – see Whittlesey’s regions on the next slide