Von Thunen’s Theories of Land Use and Agricultural Organization How is agricultural land organized? How does this impact the cost of rent/purchasing land?
Land Use and Agriculture • Fallow – the practice of farming land, harvesting, tilling (but not planting), and repeating the cycle • Half the field is fallowed, the other half is planted • CBD – central business district (town, city, hearth) • Three-Field Farming • Only one third of the field is fallowed, while the other two parts are harvested in Spring and Autumn • Bid rent – how much someone is willing to pay for a particular piece of land
Johann Heinrich Von Thünen • Developed an agricultural model to explain the locations and costs of agriculture in and around a CBD • He used mathematics to explain the cost of farming in multiple environments • R = Y(p − c) − YFm • R = rent p = production costs • Y = yield c = market price • F = transportation costs • m = distance to market
Applications • By analyzing the consumer costs, production, and geographic limitations, Von Thunen’s model could help landowners and agriculturalists determine adequate rent for land and potential profits • This model is outdated and was created assuming all land was similar, climate was fixed, no roads existed, and technology would not improve • This model has been modified to take physical features into account
William Alonso • William Alonso used von Thunen’s model to evaluate the cost of land in an agricultural region (or industrial center) • The farther away from the CBD, the less money people were willing to pay due to the limited access to the CBD • How can this be applied today?
Modernization • How can the principals of von Thünen and Alonso be used to explain land costs for agriculture today? • What changes over time have shifted this model? • Can this model be used in future agriculture? • Where can this model still be seen?
Grocery Ad • How can the grocery ad illustrate von Thunen’s model in action? • Why are the prices different for each product? • What factors are used to determine the market cost of foods?