Von Thünen's Model of Land Use

Lan d Use P l an n in g & Deve lo pm en t (TP 2415 )

Depa r tm en t o f To wn & Co un t r y P l a nn i n g

Un i ve r s i t y o f Mo r a tuwa

1 5 . 0 1 . 2 0 1 0

Johann Heinrich Von Thünen (1783-1850) developed a Model

of Land Use in 1826.

He explained how market base forces influence the location of

agricultural land uses.

Von Thünen's model was based on agricultural land use but it is

not limited to that land use.

Von Thünen's Model of Land Use

The city is located centrally within an "Isolated State" which is self sufficient

and has no external influences.

The Isolated State is surrounded by an unoccupied wilderness.

The land of the State is completely flat and has no rivers or mountains to

interrupt the terrain.

The soil quality and climate are consistent throughout the State.

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.

Farmers act to maximize profits.

Main Assumptions:

1. Dairying and intensive farming occur in the ring closest to the city.

Since vegetables, fruit, milk and other dairy products must get to market quickly,

they would be produced close to the city.

2. Timber and firewood would be produced for fuel and building

materials in the second zone.

Before industrialization, wood was a very important fuel for heating and cooking.

Wood is very heavy and difficult to transport so it is located as close to the city as

possible.

3. The third zone consists of extensive fields crops such as grains for

bread.

Since grains last longer than dairy products and are much lighter than fuel, reducing

transport costs, they can be located further from the city.

There are four rings of agricultural activity surrounding 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. Animals

can walk to the central city for sale or for butchering.

5. Beyond the fourth ring lies the unoccupied wilderness,

which is too great a distance from the central city for any type of agricultural

product.

CENTRAL CITY

INTENSIVE FARMING/ DAIRYING

FOREST

EXTENSIVE FIELDS CROPS

RANCHING/ ANIMAL PRODUCTS

VON THUNEN'S MODEL

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.

The above figure provides an overview of Von Thunen’s agricultural

land use model with the basic assumptions being applied (isolation,

ubiquity, transportation).

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 = Land rent

Y = Yield per unit of land

c = Production expenses per unit of commodity

p = Market price per unit of commodity

F = Freight rate

m = Distance to market.

1. Distance to the market

2. Selling price of the product at the market

3. Land rent

According to the Von Thunen Model, the particular type of production

depends on three items,

Von Thunen Model generally concludes the following on location of

agricultural uses,

Land uses determine land values and not vice versa.

Because of increasing transport costs, producers of goods having

high transport costs relative to their value will be able to outbid

others for land at the center.

With homogeneous land, the land use pattern is one of the

concentric zones around the central market, nearness to the center

depending on transport costs relative to value.

Even though the Von Thunen model was created in a time before

factories, highways, and even railroads, it is still an important model.

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, profit and

produce the most cost-effective product for market.

The model was developed in an isolated state and did not take into

consideration differences in sites (local physical conditions).

It can be modified by relaxing some of the conditions set forth by Von

Thunen:

1. Differential transportation costs.

2. Variations in topography

3. Soil fertility

4. Changes in demand or price of the commodity

5. Government policies

WEAKNESSES & CRITICISM

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