Von Thunen

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Von Thunens Model of Agricultural Land Use
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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.

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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

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Von Thunen Model

• The first location theory - 1826
• A concentric model same center with larger
  diameter circles

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Contains six assumptions

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

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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

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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 doesnt account for non-German
  diets or customs

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Major concepts

• Distance from the city
• 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

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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. 1826
  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.

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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.

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• 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
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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

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Contemporary Variables

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

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It doesnt always look the same
Modifications to the model to account for a
physical disruption or second market center
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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.
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Compare the national von Thunen model to the
Whittlesey agricultural regions
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How would this look for Europe?

• If London was the only market, what crops would
  be grown in which countries? see Whittleseys
  regions on the next slide

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