1. Commercial Agriculture and Market Forces: The Von Thünen Model
Chapter 10 section 10

2. Terms/Concepts
Agribusiness
Von Thunen Model
Government subsidies

3. Commercial Agriculture and Market Forces
Agribusiness
The system of commercial farming found in the developed countries

4. Von ThÜnen Von ThÜnen model
explains importance of proximity to market in the choice of crops on commercial farms.
Johan Heinrich Von-Thünen

5. According to the model, later modified by geographers, a commercial
farmer initially considers which crops to cultivate and which animals to
raise based on market location.

7. Productivity challenges
The experience of dairy farming in the United States demonstrates the growth in productivity.
Increased yield per cow (dairy farming) has tripled.
Commercial farmers suffer from low incomes because they are capable of producing much more food then is demanded by consumers in developed countries.
Surplus leads to low incomes.

8. Productivity challenges
Surplus (greater yield per area of land) is produced because of efficient agricultural practices
new seeds
Fertilizers
Pesticides
Mechanical equipment
Management practices

9. Government subsidies Subsidy = a grant or contribution of money
U.S. government has 3 policies to address the problem of excess productivity
Farmers are encouraged to avoid producing crops that are in excess supply.
Government pays farmers when certain commodity prices are low.
Government buys surplus production.
Sells or donates it to foreign governments
Developed countries: encouraged to grow less food
Developing countries: struggle to increase food production

10. Terms/Concepts
Agribusiness
Von Thunen Model
Government subsidies