Johann Von Thunen was a farm owner in Germany, and in 1826 he created an economic model that suggested a pattern for the types of products that farmers would produce. The model was in different positions relative to the market where they sold their goods. Von Thunen believed that the farmers decisions were based on the transportation costs, and that the cost were proportional to the distance from the market. HIs model showed similar patterns between distance and the intensity of land from the market.
Von Thunen’s model consist a city or market and four zones. The inner rings are cost inputs for high market value or high yield. The outer rings are large wheat fields and livestock ranching that are at a cheaper cost for the land. In von Thunen’s model there’s a central city, intensive farming, managed forest, extensive field crop, and ranching/grazing, As one gets closer to the city, the price of the land increases. The world has changed in many ways throughout the years, which impacts the model. For instance, because of the newer technology, farmers are able to move and plant faster. Now we have refrigeration and can have food last longer.
Farmers also have newer farm machines that help them farm and move crops. Farmer have replaced forest with fields. Because of this fields every year are constantly replace nutrients with chemical fertilizers that can pollute rivers and lakes.In 1960 Willian Alonso completed his theory which extended the Von Thunen Model to urban land uses. Von Thunen’s Model has been valuable in many ways. His model has helped farmers make decisions about using resources, which was the first economic location model. Thanks to Von Thunen, Alfred Weber and others created the Bid-rent Curve theory.
Nearly two centuries ago the model is still being used today, but has adapted to the changes of technology.The model has a set of basic assumptions which reflects agricultural conditions around a city. Von Thunen’s Model conclude that the cultivation of a crop is only worthwhile within certain distances from the city. Assumptions about the Von Thünen model are as follows, soil quality and climate are consistent, agricultural activities and their surroundings are isolated, and farmers behave rationally to maximize profits.