Von Thunens Model of Agricultural Land Use Land

Von Thunen’s Model of Agricultural Land Use

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.

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

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

Contains six assumptions 1. There is only one market available, selfsufficient 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.

Contains six assumptions By definition – models are simplified to illustrate a concept. Most models make assume certain factors to be uniform. 1. There is only one market available – which is the city (defined as center of trade) 2. All farmers are market oriented – selling their goods in the one market 3. The physical environment is uniform – no rivers or mountains to disrupt trade. Later is a drawing showing the effect of rivers and a 2 nd market

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

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

So………. 1. Dairying and gardening of fruits and vegetables would be closer to the urban market while… 2. Timber and firewood for fuel and building materials would be in the second zone. 1826 – wood is needed constantly for warmth and cooking 3. Mixed farming, commercial grain and orchards and 4. Extensive cattle ranching would be located farther away. Transportation is cheap: the animals can walk to the city for butchering.

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.

§ 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

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

Contemporary Variables § More efficient transportation § Transportation cost no longer proportional to costs § Firewood not a factor for heating § Technology has reduced perishability refrigeration

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

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.

Compare the national von Thunen model to the Whittlesey agricultural regions

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