Von Thunen’s Theories of Land Von Thunen’s Theories of Land Use and Agricultural Use and Agricultural OrganizationOrganization

•How is agricultural land organized?How is agricultural land organized?•How does this impact the cost of rent/purchasing land?How does this impact the cost of rent/purchasing land?

Land Use and AgricultureLand Use and AgricultureTermsTerms

Fallow – the practice of farming land, harvesting, Fallow – the practice of farming land, harvesting, tilling (but not planting), and repeating the cycletilling (but not planting), and repeating the cycle

CBD – central business district (town, city, hearth)CBD – central business district (town, city, hearth)

Bid rent – how much someone is willing to pay for a Bid rent – how much someone is willing to pay for a particular piece of landparticular piece of land

TermsTermsThree-Field Farming—One third of the field is Three-Field Farming—One third of the field is

fallowed, while the other two parts are fallowed, while the other two parts are harvested in Spring and Autumn. One third is harvested in Spring and Autumn. One third is usually a grain—winter wheat or rye, one third is usually a grain—winter wheat or rye, one third is crops like beans, peas or lentilscrops like beans, peas or lentils

Enclosed fields—you have crops in some fields Enclosed fields—you have crops in some fields and animals grazing in others. The fields are and animals grazing in others. The fields are enclosed—fenced—to keep the animals from enclosed—fenced—to keep the animals from wandering into the wrong areas. Then you wandering into the wrong areas. Then you rotate the pasture and crop landrotate the pasture and crop land

Johann Heinrich Von ThünenJohann Heinrich Von Thünen Developed an agricultural model to explain the locations and Developed an agricultural model to explain the locations and

costs of agriculture in and around a CBDcosts of agriculture in and around a CBD

He used mathematics to explain the cost of farming in He used mathematics to explain the cost of farming in multiple environmentsmultiple environments

RR = = YY((pp − − cc) − ) − YFmYFm

R = rentR = rent p = production costsp = production costs

Y = yieldY = yield c = market pricec = market price

F = transportation costsF = transportation costs

m = distance to marketm = distance to market

ApplicationsApplications

By analyzing the consumer costs, production, By analyzing the consumer costs, production, and geographic limitations, Von Thunen’s model and geographic limitations, Von Thunen’s model could help landowners and agriculturalists could help landowners and agriculturalists determine adequate rent for land and potential determine adequate rent for land and potential profitsprofits

This model can be been modified to take This model can be been modified to take physical features into account (for instance the physical features into account (for instance the “model modified by river” diagram in your books “model modified by river” diagram in your books on page 330)on page 330)

William AlonsoWilliam Alonso

William Alonso used von ThunenWilliam Alonso used von Thunen’’s model to evaluate the s model to evaluate the cost of land in an agricultural region (or industrial center)cost of land in an agricultural region (or industrial center)

The farther away from the CBD, the less money people The farther away from the CBD, the less money people were willing to pay due to the limited access to the CBDwere willing to pay due to the limited access to the CBD

How can this be applied today?How can this be applied today?

WeaknessesWeaknesses

Assumed that all land had similar site Assumed that all land had similar site characteristics and uniform qualitycharacteristics and uniform quality

Failed to consider that social customs and Failed to consider that social customs and government policies influence the attractiveness of government policies influence the attractiveness of plants and animals for a commercial farmerplants and animals for a commercial farmer

Isolated state, surrounded by wilderness, no roads, Isolated state, surrounded by wilderness, no roads, transport is by ox carttransport is by ox cart

More Weaknesses:More Weaknesses:

Didn’Didn’t take into considerationt take into consideration RoadsRoads RailroadsRailroads Refrigerated TrucksRefrigerated Trucks Other modern technologyOther modern technology

Relevant?Relevant?

Land costs are still more closer into citiesLand costs are still more closer into cities

Transportation costs continue to be relevantTransportation costs continue to be relevant Consider the “Buy Local” movementConsider the “Buy Local” movement

**It does have application today, but probably a bit of **It does have application today, but probably a bit of limited applicationlimited application

Art ProjectArt Project

Make one ring for each of Von Thunen’s ringsMake one ring for each of Von Thunen’s rings

Each ring needs to state WHAT is grown there and WHY it is in Each ring needs to state WHAT is grown there and WHY it is in that ringthat ring

Color each ring like the item that grows/pastures thereColor each ring like the item that grows/pastures there

On the back of your largest ring, write down the failings and On the back of your largest ring, write down the failings and assumptions made in Von Thunen’s model. Why might it not assumptions made in Von Thunen’s model. Why might it not work perfectly in every situation?work perfectly in every situation?

Art ProjectArt Project