The agricultural location theory is a normative economic model which was first presented in 1826 in a book called Der Isolierate Stat. This theory is based on the concept of Economic Rent which is prevalent in farm market distance relationship. The agricultural location theory is one of the earliest attempts to explain the pattern of land use in economic terms which was proposed by Von Thunen.
Von Thünen's Theory of Agricultural Location is predominantly concerned with the relationship between the location of agricultural activities and the distance from the urban market. He devised this theory by analyzing data from the Mecklenburg region in northern Germany. The main aim of Von Thünen’s model was to demonstrate how agricultural land use varies with the distance from a central market.
Based on factors like the value of production, yield, transportation costs, and market prices, he identified several concentric zones (typically four, not six) where different types of agricultural activities are conducted.
HERE are Postulates of Von Thünen’s Model
1. Isolated State: At the center of the agricultural region, there is an isolated state with no interaction with the outside world.
2. City at the Core: The model assumes a central city surrounded by an agricultural hinterland where farmers supply the urban market.
3. Homogeneous Land: The agricultural region is homogeneous in terms of relief, soil, and climate, meaning all land is equally fertile and suited for agriculture.
4. Transportation Costs: The cost of transporting goods is directly proportional to the distance from the market.
5. Market Dependency: All surplus crops are sold exclusively in the central market.
6. Single Mode of Transportation: Only one form of land transportation is available, typically represented by horse-drawn carts in the original model.
7. Rational Farmers: Farmers are assumed to act rationally and economically, optimizing their production to maximize profits.
8. Perfect Knowledge: It is assumed that farmers have complete knowledge of agricultural techniques and market conditions, enabling them to make informed decisions to maximize their returns.
GEOGRAPHY MASTERCLASS