Von Thunen’s Model of Von Thunen’s Model of Agricultural Agricultural

Land Use Land Use

The first location The first location theory theory

A concentric A concentric

modelmodel

Contains six assumptionsContains six assumptions 1.1. There is There is only one market availableonly one market available, self-, self-

sufficient with no outside influence. sufficient with no outside influence.

2.2. All All farmers are market orientedfarmers are market oriented, producing , producing goods for sale. (Not subsistence.)goods for sale. (Not subsistence.)

3.3. The The physical environment is uniformphysical environment is uniform; there are ; there are no rivers or mountains. no rivers or mountains.

4.4. All points at equal distancesAll points at equal distances from the market from the market have equal access to the market. have equal access to the market.

5.5. All farmers act to All farmers act to maximize profitsmaximize profits..

6.6. The The dietary preferencesdietary preferences of the population are of the population are those of those of Germanic EuropeansGermanic Europeans. .

Land rent Land rent The main concept is land rent or land value, The main concept is land rent or land value,

which will which will decreasedecrease as one gets farther away as one gets farther away from central markets. from central markets.

Rent is highest in the closest proximity to Rent is highest in the closest proximity to urban markets. (urban markets. (Bid-Rent TheoryBid-Rent Theory)) Thus, agricultural products that have intensive Thus, agricultural products that have intensive

land use, have high transportation costs and were land use, have high transportation costs and were in great demand would be located close to urban in great demand would be located close to urban markets. markets.

Major concepts: Major concepts:

Distance from the cityDistance from the city Preservation of foodPreservation of food Amount of space Amount of space

Why?Why?

Some products spoiled more quickly, Some products spoiled more quickly, needed more sensitive transportation, or needed more sensitive transportation, or generate higher prices at marketgenerate higher prices at market

These products mean the farmer can These products mean the farmer can afford higher land rent. afford higher land rent.

It doesn’t always look the It doesn’t always look the same: same:

Inference of Von Thunen’s Model to Continental United States

Vegetables

Dairy

Cotton andTobacco

Corn andSoybeansWheat

Beef Cattleand Sheep

Forest

Corn andSoybeans

Wheat

Beef Cattleand Sheep

Cotton andTobacco

Forest

SpecialtyCrops

SpecialtyCrops

Dairy

Vegetables

Assumptions1. New York City the only market2. Crops ranked by rent paying ability3. No terrain or climatic variation

Assumptions1. New York City the only market2. Crops ranked by rent paying ability3. No terrain variation 4. Climatic variation consideredA B