The Application of Von Thunen Model

Von Thunen did not consider site and human factors. Although this model can be accurate today
in some area, Von Thunen assumed a lot of factors and did not consider site or human
factors making his model weak in many ways and attracts a lot of criticism.

Limitations
1. Oversimplification
- The model was over because there are very few places with flat, featureless plains
- There may be several markets instead of one.
- Large areas will have variations in climate. Homogeneous climate and soils rarely
exist.
- Some areas will be more favourable than others.
- An isolated state is rarely found in the modern world

2. Outdatedness
– The model was produced about 2 centuries ago 170 years.
– Has limited value in modern farming economics
- There has been significant advances in technology, changing use of resources,
pressures created by population growth, emergence of different economic policies
- Changes and improvements in transportation. The intervention of motor vehicles,
trains aeroplanes has revolutionized transport, increasing accessibility and making the
movement of goods faster and cheaper.
- Milk tankers and refrigerated lorries allow perishable goods to be produced further
from the market. And stored for longer periods of time.
- The use of wood as a source of fuel in developed countries has been replaced by gas
and electricity so there may be no need for trees near the market. On the other hand in
developing countries supplies of timber is consumed rapidly and not being replaced.
- Improved farming techniques using fertilizers, genetic engineering and irrigation have
improved yields and extend the margins of cultivation, thereby expanding the scale of
possible economic organization. Environmental variables, as pointed out in
connection with the physical limits model, are only a general locational constraint and
play a passive role in shaping the distribution of modern commercial agriculture. In
the human-technological context, the employment of artificial irrigation, chemical
fertilisers, and the like, allows farmers to overcome most environmental barriers.
- Farmlands have been taken over by urban growth or by those competitors who obtain
higher economic rents.
 3. Failure to recognize the role of government.

- Government can alter land use by providing subsidies/removing, imposing quotas, etc
Government policies and changes in demand or price of the commodity
- Government may have direct involvement in production (China and Cuba) rather than
allowing the market system to operate.

Failure to include behavioural factors

- Assume that farmers are economic men.
- Farmers do not always possess full knowledge and they may not always make
rational decisions.
- They may prefer to enjoy increased leisure time rather than seeking to maximize
profits and may be reluctant to adopt new methods.
- Farmers may have different levels of ability, ambition, capital and experiences and
none can predict changes in the weather, government policies or demand for their
products.

The Von Thunen model is also static and deterministic. Today, economic growth and changes in
demand alter the spatial patterns of agricultural systems and land use. Von Thunen model despite
possible manipulations, is really static, because it represents a land use system at one point in
time. Von Thunen was not concerned with transitional changes, however, most of the extenders
of his model assumed that any change in technology, demand, or transport cost would
automatically be accompanied by an adjustment in the land use system.

Usefulness of Von Thunen’s Model

Relevance of the model

The model has some applicability both at the local and national levels.

At the local level- a relatively remote, present-day hill village in the Mediterranean (Europe). Many
villages in southern Italy, Spain and Greece have hilltop sites (in contrast to von Thunen’s featureless
plain, where, usually, transport links are poor, affluence is limited and the village provides the main –
perhaps the only market. As the distance from the village increases, the amount of farmland used, and
the yield from it decrease. Two critical local factors are the distance which farmers are prepared to
travel to their fields and the amount of time, or intensity of attention, needed to cultivate each crop.

At the national level the von Thunen-type pattern was observed by Horvath in Ethiopia: an area of
eucalyptus forest around the city of Addis Ababa (used for fuel and building materials); vegetable
cultivation within the forest; and a zone of mixed farming beyond the forest zone.
 In Uraguay farming intensity decreases with distance from the city. The first zone was assigned to
horticulture and truck farming, followed by a zone of dairying and acereal zone.

826, Von Thunen published his work on agricultural land-use. He set out to explain how and why rural land-
use varies. Despite being over 150 years old his work still has relevance today.

To simplify the real world he made several assumptions:

1. Economic man: man will be motivated by maximising profit

2. Isolated state: the state is cut off from the rest of the world
3. One urban area: which provides a uniform price
4. Isotropic plain: the land is broad and flat with no features. Soil and climate are the same across this plain.
5. Transport: only one type and cost increases with distance

He based his work on the concept of locational rent.

Locational rent is the money a farmer gains for growing his crops on any particular piece of land. Today we
would call it profit.

You can calculate locational rent thus:

Locational rent = Revenue from selling crop - (Costs of production + costs of transport)

From this we can work out the profits for each piece of land.

For example:

If we assume that Wheat is selling at £100 per tonne.

It costs £20 per tonne to grow it (labour and fertiliser).

It costs £2 per mile per tonne to transport.

Farm A is 0 miles from the market

L.R. per tonne = 100-(20+0)

L.R.= £80.

Farm B is 15 miles from the market

L.R. per tonne = 100-(20+30)

L.R. = £20.

Farm C is 30 miles from the market

LR per tonne = 100-(20+60)

L.R. = £20

If we now plot these figures on a graph:

We can see that locational rent decreases with distance from the market place. This is because transport
costs increase.

Different crops would have different market prices, costs of production and costs of transportation.

So, if we look at potatoes that have a higher market price but also higher costs of transportation:

Market price - £120 per tonne

Costs of production - £25 per tonne

Costs of transportation £3 per tonne per mile

Then we would get a different locational rent graph...

Farm: Locational rent:

A - 0 miles from market 125- (25 + 0)= £100

B - 15 miles from market 125- (25 + 45)= £55

C - 30 miles from market 125- (25+ 90)= £10

This would produce the following graph:

If we then put these two graphs together then we get this...

From this it can be identified how and why land-use will vary as one move out of the urban area. Farm A and
B would grow potatoes as these command the highest locational rent (profit).

Farm C however would grow wheat because the cost of transporting the produce to the market place means
potatoes would no longer make the most money.

If in this imaginary land one walked from the market place out into the countryside one would first only
potatoes then only wheat. Obviously the real world is far more complex. Von Thunen developed these basic
principles to come up with a pattern of land-use.

Evaluation of Von Thunen's work

 Von Thunen over simplifies the real world and his model is often criticised for having little modern day
relevance. The main weaknesses of his model relate to the basic assumptions. Each of these can be
dismissed:

1. Economic man: man is actually motivated by a wide range of factors. For example many would reach a
certain income level and then enjoy increased leisure time. Some will work harder or more efficiently then
others.
2. Isolated state: the state is not cut off from the world.
3. One urban area: maybe true in cases of urban primacy but this is the exception not the rule.
4. Isotropic plain: the physical landscape is not feature less. Physical features in fact have a great influence on
farming as we have already seen.
5. Transport: today the transport revolution means food can be transported further than ever before. Refrigerated
milk lorries for example mean milk no longer needs to be produced next to the market place. The EU food-
mountains show that perishable produce can be stored for a long time!

In addition Von Thunen failed to take into account innovation, new technology or government action. The
influence of which has already been discussed.

Von Thunen does however have some relevance to land-use distribution in certain areas.

In the hill farms of southern Italy for example crop intensification does decrease with distance from the market
place. This is because the transport routes are poorly developed and the villages almost act as isolated states.

Alternatively in Uruguay farming intensity decreases as you move away from the primate city.

Von Thunen provides us with an explanation of land-use. His work is now over 150 years old so has inevitable
faults but if this is appreciated he still provides us with a land-use pattern for comparisons and a starting point
for explanations.

The Von Thunen model of agricultural land use was created by farmer and amateur
economist J.H. Von Thunen (1783-1850) in 1826 (but it wasn't translated into English
until 1966). Von Thunen's model was created before industrialization and is based on
the following limiting assumptions:

 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.
In an Isolated State with the foregoing statements being true, Von Thunen
hypothesized that a pattern of rings around the city would develop.

There are four rings of agricultural activity surrounding the city. 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 (remember, we didn't have refrigerated oxcarts!)

Timber and firewood would 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 difficult to transport so it is located as
close to the city as possible.

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.

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.

Beyond the fourth ring lies the unoccupied wilderness, which is too great a distance
from the central city for any type of agricultural product.

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.