Assumptions One city – only one market Isolated state surrounded by wilderness Flat, featureless plain Land is equally farmable/productive No roads, only wagons Transport cost is proportional to distance (farther is more expensive) • Farmers seek to maximize profit • • •
Similar to a science experiment • He is eliminating variables to focus on the economic experiment
1826
Factors influencing location of agriculture • Climate and natural environment Urban market • Culture • Economic factors High transportation cost items (vegetables, eggs, dairy, flowers) Intensive land use – high land rent Medium transportation cost items (corn, soybeans, mixed farming) More extensive land use – medium rent Lowest transportation cost items (forestry, wheat, livestock ranching) Most extensive land use – lowest land rent Simplified von Thünen model of agricultural land use (1826)
Bid Rent Theory Land closer to the city center costs more. Land farther away costs less.
Criticisms • Brainstorm problems with his theory
Criticisms • Different transportation costs – e. g. boats cheapest • Variations in topography • Soil fertility • Changes in demand/price of crops • Invention of refrigeration diminished perishability factor • Social, political, cultural factors also affect farm location
Apply Von Thunen to the US • US map • Apply the modern version • New York is the one city