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 How does this impact the cost of rent/purchasing land?rent/purchasing land?

Land Use and AgricultureLand 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 ThünenJohann 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

ApplicationsApplications

• 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• This model is outdated and was created assuming all land was similar, climate was fixed, no roads existed, and technology would not improve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 AlonsoWilliam 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?

ModernizationModernization

• 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 AdGrocery 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?