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Per Y = 1, m = 1-5

Peppers

  • p = $20
  • c = $10
  • F = $2

Wheat

  • p = $16
  • c = $8
  • F = $1

R=Y(p-c) - Yfm

R= rent/unit of land

Y= yield/unit of land

p= market price/unit of yield

c= avg. production costs/unit of yield

m= distance from market

f= freight rate/unit of yield and unit of distance

Von Thünen's Assumptions

one market with no trade with the outside

NO state is cut off from the world

land around the market is entirely flat and soil fertility is uniform

Physical landscape is far from featureless. It has a huge impact on farming choices!

Isolation

Isotropic Plain

Transportation

Economic Man

no transport infrastructure

  • no roads or rivers
  • horses and carts
  • cost dependent

Roads, rivers, trains, planes, trucks...you name it, we've got it!

farmers want money!

Farmers don't just want money!

Von Thünen's Model

Ring 4: Livestock & Ranching

  • Lowest Transportation Cost Items
  • Wheat
  • Livestock Ranching
  • Lowest rent
  • Most extensive land use

Ring 3: Less Perishable Foods

  • Medium Transportation Cost Items
  • Corn
  • Soybeans
  • Mixed Farming
  • Medium Rent
  • More extensive land use

Ring 2: Forest

  • Timber and firewood for fuel and building materials
  • Heavy - transport difficult

Doesn't exist today!

Ring 1: Modern Dairying

  • Milk, Butter, Cheese
  • Displacement caused by urbanization

  • Fewer farms=more production

Johann Heinrich Von Thünen

1783-1850

German farmer and economist

1826 - The Isolated State

-First discussion of spatial economics and Economic geography

Significance

Changes to the Model

  • First economic model of spatial organization
  • Shows balance between land cost and transportation costs
  • Helps explain why farmers choose the crops they do
  • Useful in discussions of land use and contemporary agricultural patterns
  • Refrigeration & Food Preservation (Pasteurization)
  • Better Transportation
  • Some products not used for food
  • Forests no longer occupy market-oriented zone
  • Firewood not a factor
  • Global Markets
  • High taxes near market
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