von thunen

Rootin’ Tootin’Rootin’ Tootin’Von ThunenVon Thunen

What factors matter What factors matter when you choose to when you choose to farm? Where farm? farm? Where farm?

Why?Why?Physical Factors:

Soil quality

Topography: Sloped or flat lands- easy to irrigate

Climate: (most important)

LET’S LOOK AT GREECE

What do you know What do you know about Greece (P/C)?about Greece (P/C)?

Islands

Hills/Mts.

Mediterranean

What are the other What are the other factors besides factors besides

Physical/climate?Physical/climate?

Cultural FactorsCultural Factors

Culture

Horse meat: nutritious (taboo in U.S.)

Pig/Cow

Algerians and wine

AlgeriaAlgeriaWhere is it? Physical/Climate?

Political FactorsPolitical Factors

Colonization and plantations

Gov finance of types of ag: new tech, certain product

Government and culture (French and wine!)

EU/US and farm subsidies

An agricultural subsidy is money paid to farmers and agribusinesses to supplement their income, manage the supply of agricultural commodities, and influence the cost and supply of such commodities.

Economic factorsEconomic factors

Cost of land/taxes

Cost of machines

Cost of fertilizer/etc

Distance from market (shipping costs)

Johann Heinrich von Johann Heinrich von ThunenThunen

German alive during 2nd Agricultural Rev.

Saw geographic pattern that seemed to emerge from market outward

creates model that explains and predicts agriculture land use patterns

Von Thunen’s ModelVon Thunen’s Model

The Isolated State (1826)

Isolate certain variables:

All soil, terrain and climate is the same (Isotropic)

Only one market/city

State (country is isolated- no trade)

What mattered then to farmers?

$$$$: Profit$$$$: Profit

Factors that matter to Factors that matter to VT...VT...

Land CostLand CostTransportation CostTransportation Cost

What was his theory?What was his theory?

Concentric Rings of ag. activity surround a city

Each ring is different type of ag.

Pattern is intensive to extensive

Ring 1: Market Ring 1: Market gardening and Dairygardening and DairyWhy near city?

Perishable

Profitable/demand high $

Can afford high rent

Ring 2: Forest Ring 2: Forest (run Forest run)(run Forest run)

Why?

Need for Construction

Need for fuel

Heavy/hard/costly to transport

Ring 3: Various Crops Ring 3: Various Crops and Grainsand Grains

What crops grown closest to Market (within 3)? furthest?

Crops with the highest market price and the highest transportation costs closest (perishable also)

Ring 4: Livestock Ring 4: Livestock RanchingRanching

Why?

Extensive...need lots of land...land is cheaper in Ring 4

After Ring 4: “4’get’aboutit...”

Notice the sharp or flat curves

Let’s mess with Von Let’s mess with Von ThunenThunen

What if a River moved thru the middle of his model? What does a river do?

Cool!Cool!

A Railroad from the SEA Railroad from the SECool Thunen!

Major IntersectionMajor IntersectionWhoa Thunen!

Another Small MarketAnother Small MarketSuburban Thunen!

Von Thunen today: no Von Thunen today: no more forest, But...more forest, But...

VT TodayVT Today

-more intensive; closer to market

-near market: minimal transport costs, but land costs and taxes high

-near market: perishable...milk, fruits

VT TodayVT Today

Von Thunen in RealityVon Thunen in Reality

VT TodayVT Today1) Market gardening (truck farming): specialize in non-tropical fruits, veg. and vines

2) Dairy: we know

3) Livestock fattening/grain: grain for livestock...cattle/pigs

-3/4 of cropland in W. Europe devoted to animals

-90% in Denmark

Although livestock-grain farms work land intensively, the value per unit is less than a truck farm...hence further from city

4) grain: Wheat

-Capital needed: planting and harvesting machinery

5) Livestock ranching

-differs from fattening

-raise young cattle/sheep

-in U.S. gain weight to be shipped to fattening

UruguayUruguay

One City

Here’s how VT would predict

Reality?

Pretty darn close!Pretty darn close!

Chi-ThunenChi-Thunen

megalopolis

Avg sized farm in ND is 1300 acres.

intensive commercial ag. close to the market...

farms may average 40 acres or less.

VT in USAVT in USA# Figure A represents what the agricultural land use would be if the most basic assumptions were applied, namely the market located at New York (or Bosnywash), crops being ranked by comparative rent paying abilities and considering ubiquitous geographical characteristics. Although this representation has some level of concordance with reality, it inaccurately portrays agricultural land use in the United States.

VT in USAVT in USA# Figure B includes one supplementary assumption that considers climate variations, where the north is colder than the south. This constraint has a significant impact on agricultural land use as even if for a location a crop would have a higher rent paying ability, another crop would be grown because climatic conditions forbids it. The resulting agricultural land use has a much higher level of correspondence with reality