Von Thünen’s

Model

Introduction1. The Von Thünen Model is used to

help explain the importance of proximity to market in the choice of crops on commercial farms.

2. The model explains and predicts agricultural land use patterns.

3. It was created by Johann Heinrich von Thünen, a 19th century (Pre-Industrial Revolution) German farmer and economist.

• Johann Heinrich von Thünen

• He lived from 1783-1850

• Wrote the model in 1826 in a treatise called The Isolated State.

Assumptions• His treatise, The Isolated State,

made several assumptions:1. The city is located centrally within

an "Isolated State" which is self sufficient and has no external influences.

2. The Isolated State is surrounded by an unoccupied wilderness.

3. The land of the State is completely flat and has no rivers or mountains to interrupt the terrain.

Assumptions4. The soil quality and climate are

consistent throughout the State. 5. Farmers in the Isolated State

transport their own goods to market via oxcart, across land, directly to the central city. Therefore, there are no roads.

6. Farmers act to maximize profits.

The Model1. The central marketplace is

surrounded by agricultural activity zones that are in concentric rings.

2. Each concentric ring represents a different type of agriculture.

3. The farming activities in the rings closer to the city are more intensive, while those further from the city are more extensive.

FormulaR = Y(p-c) - Yfm• R = Rent per unit of land.• Y = Yield per unit of land.• p = market price per unit of yield.• c = Average production costs per unit of

yield.• m = Distance from market (in kilometers

or miles).• f = Freight rate per unit of yield and unit of

distance.

The Rings1. 1st ring: Horticulture and dairying.

These products do not need extensive land, are expensive to transport, and spoil quickly. Therefore, this type of farming is profitable closer to the city.

2. 2nd ring: Forestry. Wood was a very important fuel for heating and cooking and is very heavy and difficult to transport, so it is located near the city.

The Rings3. 3rd ring: Various crops and pasture.

More land is needed for these activities and rent is cheaper. Also, products are much lighter, reducing transportation costs.

4. 4th ring: Ranching needs extensive land and transportation was relatively cheap because animals could walk themselves to the city for slaughter.

                                             

  

Thünen's model: the black dot represents a city; 1 (white) dairy and market gardening; 2 (green) forest for fuel; 3 (yellow) grains and field crops; 4 (red) ranching; the outer, dark green area represents wilderness where agriculture is not profitable

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

Criticisms1. Von Thünen did not take into

consideration the following:A. Site (the physical characteristics of a

place)B. Variations in topographyC. Quality of soilD. Different modes of transportationE. Changes in the demand or price of a

commodityF. Social customs and government

policies