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Presentation
Von Thunen’s Model of Agricultural
Land Use
PREPARED BY ZUBAIR KHAN
OUTLINES OF THE PRESENTATION
1. BASIC TERMS
2. INTRODUCTION
3. MODEL OF THEORY
4. ASSUMPTION OF THE THEORY
5. EXPLANATION
6. MAIN CONCEPT OF THEORY (bid rent curve/economic rent/land rent)
7. MODIFICATION AND CRITICISM OF THE THEORY
8. CONCLUSION
BASIC TERMS
•Agriculture: the science or practice of farming, including cultivation of the
soil for the growing of crops and the rearing of animals to provide food, wool,
and other products.
•Land use : the use of land for particular propose (agriculture, settlements,
forest )
•Intensive forming :Intensive farming or intensive agriculture is a kind of
agriculture where a lot of capital and labor are used to increase the yield that
can be obtained per area. The use of large amounts of pesticides for crops and
of medication for animal stocks is common.
•Extensive forming :Extensive farming or extensive agriculture (as opposed to
intensive farming) is an agricultural production system that uses small inputs of labor,
fertilizers, and capital, relative to the land area being farmed.
•Isotropic: Same
•Bid rent: how much someone is willing to pay for a particular piece of land
INTRODUCTION
The agriculture land use model developed by JOHANN
HEINRICH VON THEUNAN (1783-1850) IN EARLY 1800’S
(19TH CENTURY).but it wasn't translated into English until 1966.
He was a German skilled farmer having knowledge about economics.
His model is also know as ‘concentric rings theory of agriculture
land use’ .
The model have 4 rings which developed around the central city.
◦ Each ring shows a different type of agriculture land use.
◦ Von Thunen’s model was created before industrialization,
highways, railroads, factories, etc.
CON…
According to his model the relative cost of transport different
agriculture commodities to the center market determined the
agriculture land use around a city .
The most productive activities will closest to the center
market and the activities not productive enough will located
away from center city.
ASSUMPTION
 The land must be an isotropic. With no river , mountain etc.
The isolated state is surrounded by an unoccupied wilderness.
The soil quality and climate are consistent throughout the state.
The transport coast is proposional to distance.
All the farmer have equal access of transport.
All the farmers are economically rational .
All farmers have equal information regarding market demands,
coast of production and all attempt to maximize profits.
MODEL
EXPLANATION
1) There are four rings of agricultural activity surrounding the city.
Dairying and intensive farming occur in the ring closest to the city. The
related products (vegetables, fruit, milk and other dairy products) have
the highest profits, but also the highest transportation costs because
they are vulnerable and perishable.
2) Timber and firewood will be produced for fuel and building
materials in the second zone. Before industrialization (and coal
power), wood was a very important fuel for heating and cooking.
Wood is very heavy and therefore difficult and costly to transport.
CON…
3) The third zone consists of extensive field crops such as grain for
bread. Since grain lasts longer than dairy products and is much lighter
than wood transport costs are considered to be lower, allowing a
location further from the city.
4) Ranching is located in the final ring surrounding the central city.
Animals can be raised far from the city because they are self-
transporting and thus have low transport costs. Beyond the fourth ring
lies the unoccupied wilderness, which is too great a distance from the
central city for any type of agricultural product.
BUT IT ALWAYS DOESN,T LOOK SAME
BID RENT CURVE (economic rent)
 As distance from
city center
increases, cost of
land goes down
CON..
The model compares the relationships between production cost, the market
price and the transport cost of an agricultural commodity and is expressed as
follows: R = 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.
All agricultural land uses are maximizing their productivity (rent), which in this
case is dependent upon their location from the market (Central City). The role of
farmer is to maximize his profit which is simply the market price minus the
transport and production costs. The most productive activities (gardening or milk
production) or activities having high transport costs (firewood) locate nearby the
market.
CRITICISM ON MODEL
 differential transportation costs. Example: boats are the cheapest. mode
of transportation.
 variations in topography.
 soil fertility.
 changes in demand or price of the commodity.
The invention of refrigeration has largely diminished the importance of
the perishability factor.
Not only physical but social, political and cultural factor also effect
agriculture location.
CONCLUSION
Even though the Von Thunen model was created in a time
before factories, highways, and even railroads, it is still an
important model in geography. The Von Thunen model is an
excellent illustration of the balance between land cost and
transportation costs. As one gets closer to a city, the price of
land increases. The farmers of the Isolated State balance the
cost of transportation, land, and profit and produce the most
cost-effective product for market. Of course, in the real
world, things don't happen as they would in a model.
ANY QUESTION OR COMMENTS ?

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Von thunen’s model of agricultural land use

  • 2.
  • 3. Von Thunen’s Model of Agricultural Land Use PREPARED BY ZUBAIR KHAN
  • 4. OUTLINES OF THE PRESENTATION 1. BASIC TERMS 2. INTRODUCTION 3. MODEL OF THEORY 4. ASSUMPTION OF THE THEORY 5. EXPLANATION 6. MAIN CONCEPT OF THEORY (bid rent curve/economic rent/land rent) 7. MODIFICATION AND CRITICISM OF THE THEORY 8. CONCLUSION
  • 5. BASIC TERMS •Agriculture: the science or practice of farming, including cultivation of the soil for the growing of crops and the rearing of animals to provide food, wool, and other products. •Land use : the use of land for particular propose (agriculture, settlements, forest ) •Intensive forming :Intensive farming or intensive agriculture is a kind of agriculture where a lot of capital and labor are used to increase the yield that can be obtained per area. The use of large amounts of pesticides for crops and of medication for animal stocks is common. •Extensive forming :Extensive farming or extensive agriculture (as opposed to intensive farming) is an agricultural production system that uses small inputs of labor, fertilizers, and capital, relative to the land area being farmed. •Isotropic: Same •Bid rent: how much someone is willing to pay for a particular piece of land
  • 6. INTRODUCTION The agriculture land use model developed by JOHANN HEINRICH VON THEUNAN (1783-1850) IN EARLY 1800’S (19TH CENTURY).but it wasn't translated into English until 1966. He was a German skilled farmer having knowledge about economics. His model is also know as ‘concentric rings theory of agriculture land use’ . The model have 4 rings which developed around the central city. ◦ Each ring shows a different type of agriculture land use. ◦ Von Thunen’s model was created before industrialization, highways, railroads, factories, etc.
  • 7. CON… According to his model the relative cost of transport different agriculture commodities to the center market determined the agriculture land use around a city . The most productive activities will closest to the center market and the activities not productive enough will located away from center city.
  • 8. ASSUMPTION  The land must be an isotropic. With no river , mountain etc. The isolated state is surrounded by an unoccupied wilderness. The soil quality and climate are consistent throughout the state. The transport coast is proposional to distance. All the farmer have equal access of transport. All the farmers are economically rational . All farmers have equal information regarding market demands, coast of production and all attempt to maximize profits.
  • 10.
  • 11. EXPLANATION 1) There are four rings of agricultural activity surrounding the city. Dairying and intensive farming occur in the ring closest to the city. The related products (vegetables, fruit, milk and other dairy products) have the highest profits, but also the highest transportation costs because they are vulnerable and perishable. 2) Timber and firewood will be produced for fuel and building materials in the second zone. Before industrialization (and coal power), wood was a very important fuel for heating and cooking. Wood is very heavy and therefore difficult and costly to transport.
  • 12. CON… 3) The third zone consists of extensive field crops such as grain for bread. Since grain lasts longer than dairy products and is much lighter than wood transport costs are considered to be lower, allowing a location further from the city. 4) Ranching is located in the final ring surrounding the central city. Animals can be raised far from the city because they are self- transporting and thus have low transport costs. Beyond the fourth ring lies the unoccupied wilderness, which is too great a distance from the central city for any type of agricultural product.
  • 13. BUT IT ALWAYS DOESN,T LOOK SAME
  • 14. BID RENT CURVE (economic rent)  As distance from city center increases, cost of land goes down
  • 15. CON.. The model compares the relationships between production cost, the market price and the transport cost of an agricultural commodity and is expressed as follows: R = 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. All agricultural land uses are maximizing their productivity (rent), which in this case is dependent upon their location from the market (Central City). The role of farmer is to maximize his profit which is simply the market price minus the transport and production costs. The most productive activities (gardening or milk production) or activities having high transport costs (firewood) locate nearby the market.
  • 16. CRITICISM ON MODEL  differential transportation costs. Example: boats are the cheapest. mode of transportation.  variations in topography.  soil fertility.  changes in demand or price of the commodity. The invention of refrigeration has largely diminished the importance of the perishability factor. Not only physical but social, political and cultural factor also effect agriculture location.
  • 17. CONCLUSION Even though the Von Thunen model was created in a time before factories, highways, and even railroads, it is still an important model in geography. The Von Thunen model is an excellent illustration of the balance between land cost and transportation costs. As one gets closer to a city, the price of land increases. The farmers of the Isolated State balance the cost of transportation, land, and profit and produce the most cost-effective product for market. Of course, in the real world, things don't happen as they would in a model.
  • 18.
  • 19. ANY QUESTION OR COMMENTS ?