The Von Thunen Model
Worksheet 1
1. What is locational rent?
It is the difference between the revenue received by a farmer for a crop grown on a piece of
land and the total cost of producing and transporting that crop. It is therefore the profit from
a unit of land.
2. ‘Locational rent shows a distance-decay relationship.’ Explain the statement.
Something showing a distance-decay relationship means that it will decrease with increasing
distance from a point of reference. In von Thunen’s landscape, locational rent declines
with distance from the market.
3. Give examples of other things which also show distance-decay relationship.
population density with distance from a city centre
accessibility with distance from a city centre
radiation with distance from a source
II. Farming as an economic system in Von Thunen Landscape
Regarding the
Economy
Urban-rural setting
Physical environment
Farmer’s behaviour
Movement over space
Von Thunen’s Assumption
1. An ‘isolated state’ with one city at the centre; prefect
competition is assumed. An ‘isolated state’ is not linked with
the rest of the world.
2. There is one city at the centre of the isolated state. The
city is the sole market for the surplus production from the
agricultural area. The agricultural area is the sole supplier to
the city.
3. This agricultural area is a uniform plain over which soil
fertility, climate, and other physical factors do not vary.
4. All farmers act as economic men. They aim to maximize
their profits and have full knowledge of the needs of the
market.
5. There are no physical barriers to movement across the plain.
There is only one form of transport (in those days, horse and
cart). The cost of this transport is directly proportional to
distance.
Worksheet 2
1. Why did Von Thunen establish so many assumptions?
He tried to control all other factors that might affect LR, leaving distance the sole variable.
2. Describe the market situation in Von Thunen’s agricultural landscape.
Perfect competition was assumed. There are numerous buyers and sellers. Market price is
determined by supply and demand. Farmers are economic men who are well-informed and
aim at profit maximization.
3. Is Von Thunen’s uniform plain assumption the same as Christaller’s isotropic surface?
Their assumptions are similar.
Type of farming
Intensive
Extensive
Distance from market (km)
d
1
30
1
30
Yields (tonnes / ha)
Y
80
80
50
50
Production cost ($)
c
25
25
20
20
Total production Cost ($)
Yc
2,000
2,000
1,000
1,000
Transport cost ($)
Ytd
80
2,400
50
1,500
Total Revenue ($)
Yp
4,400
4,400
2,750
2,750
Locational rent / profit ($)
2,320
0
1,700
250
Locational rent ($)
(market price = $55/tonne;
transport cost = $1 / tonne / km)
3000
Intensive
2500
2000
Extensive
1500
1000
500
0
0
10
20
30
Distance from urban market (km)
The margin of transference from intensive to extensive farming is 21.6 km from urban
market
Farmers nearer to the market should adopt a more intensive way of production.
Worksheet 4
Type of farming
Distance from market (km)
Yields (tonnes / ha)
Production cost ($)
Market Price ($/tonne)
Total production Cost ($)
Transport cost ($)
Total Revenue ($)
Locational rent / profit ($)
d
Y
c
p
Yc
Ytd
Yp
Vegetable
0
30
30
30
20
20
70
70
600
600
0
900
2,100
2,100
1,500
600
Wheat
0
60
20
60
1,200
0
3,600
2,400
30
60
20
60
1,200
1,800
3,600
600
Potato
0
90
20
50
1,800
0
4,500
2,700
30
90
20
50
1,800
2,700
4,500
0
(transport cost = $1/ tonne / km)
Locational rent ($)
3000
2500
2000
1500
Vegetable
Wheat
Potato
1000
500
0
-500 0
10
20
30
40
-1000
-1500
Distance from urban market (km)
The margin of transference from potato to wheat is 10 km from urban market.
The margin of transference from wheat to vegetable is 30 km from urban market.
Farmers locating near to urban market should grow crop with higher yield / greater weight.
1.
2.
3.
more intensive farming can be found near to urban market
perishable farming products such as milk should be produced near urban market
there is a uniform plain
transport cost is directly proportional to distance and weight
man is economically rational
the improvement in transport technology and the rapid decrease in unit transport cost
the rise of international regional specialization and division of labour
4.
rapid urban development and strong anticipation of urban encroachment
the active role of government / institutional factors
perception of farmers / behavioural factors
The Sinclair’s Model
Classwork I
Underlying
force
Characteristics in Sinclair’s time
Improved and more efficient means of transport have displaced former methods.
Costs of all types of transport have declined greatly in relation to most other
Transport agricultural production costs. Moreover, transport costs are not necessarily directly
technology proportional to distance and bulk. Because of refrigeration and air-conditioning
techniques, perishable commodities can be carried long distance without spoiling. An
increasing amount of agricultural produce is processed before shipment. These new
development help to satisfy fully the changing tastes of the modern city dweller, who
demands a more varied and exotic diet than what local agriculture can provide.
Modern organization favours large scale production and mass transportation of
agricultural produce. As a result, physical or other advantages of distant, specialized
regions have become more important than in the past. For this same reason, there is
Human
organization rarely such a thing as a single local market, but rather a nationwide or worldwide
market.
In many advanced developed parts of the world, the basic forces determining
agricultural land use near urban areas are associated with urban expansion with
Living habits population growth and constantly expanding areas of urban land use. Although urban
expansion is uneven and in many ways chaotic, there is evidence that it creates an
agricultural pattern quite often is one of increasing intensity opposite to von Thunen’s
theory.
II. BASIC FEATURES OF THE MODEL
Classwork II
1. Describe the value of agriculture for crop X in regions O-P, P-Q and Q-R.
From O-P, agricultural value is 0. From P-Q, agricultural value increases as the distance
increases. From Q onward, agricultural value keeps constant.
2. Explain the change of value of agriculture with distance from city centre.
From O-P, urban expansion has resulted in the replacement of agricultural land by urban uses.
The locational rent of urban uses are much higher than farming use. Agriculture has been
outbid by urban land uses. Agricultural value thus is zero. At the margin of O-P,
replacement does not take place yet, but will sooner do. Existing farmland may lie idle waiting
for speculation.
From P-Q, immediate urban expansion does not occur in the meanwhile. But sooner or later,
the land will be replaced by urban uses. It is not justifiable for farmers to invest too much on
their farms. The land still can bring income if it is used for extensive grazing or growing of
field crops. The further away from the city, the weaker is the influence of urban expansion.
Thus value of agriculture increases slowly with distance from city.
Beyond Q, the influence of urban expansion ceases. The most economical way of using the
land is farming. It is also justifiable to invest much on the land. Agricultural value is high.
The flat curve indicates that farming potential is not so controlled by physical distance.
3. How does such pattern of agricultural value affect farming intensity?
From O-P, farming intensity is the lowest. Farmers have no incentive to invest in this region
because the land will finally be used for urban purposes.
Intensity increases with distance in region P-Q. Value of agriculture is increasing in this region.
Farmers are willing to increase their farming inputs per area.
Values of agriculture remains constant in region Q-R. Urban influence will not extend to this
region. Farmers can make long term plan on investment. Thus farming intensity is highest
among the three regions.
4. Complete the following table.
Region
Agricultural
value
Farming
intensity
O-P
zero / lowest
Lowest
Reasons
urban influence changes land use pattern;
agricultural land is outbid by urban uses
P-Q
increasing
Increasing
urban influence is not immediate;
urban influences decreases with distance
Q-R
remains
constant in high
level
Highest
urban influence is minimum;
long term planning in farming is possible
B. Locational rents and Land Use Pattern around a Metropolitan Area
Classwork II
1. What are the land use types marked (1) to (5)?
(1) ---
urban farming
(2) ---
vacant and grazing
(3) ---
field crop and grazing
(4) ---
dairying and field crop
(5) ---
specialized feed grain livestock
III..
Sinclair’s Model : Land Use Pattern
Ring
Land use
1 Urban farming
2
3
4
5
Reasons for selection of crops and/or livestock and production
At the urban edges, land is either changing to urban use, being subdivided,
or held by speculators. Here urban farming, a hodgepodge of small
producing units, is scattered. These are poultry-keeping, greenhouses, or
mushroom-raising which often take place in building or multi-storeyed
buildings.
Such activities do not correspond to the market-gardening or dairying as
suggested by Von Thunen. They are farm factories and are really industrial
forms of land use, though destined for early disappearance.
Vacant and
It is mainly a zone of vacant land or land of temporary grazing. Where
grazing
farmers leave much land empty to sell to speculators at the most lucrative
moment, and only allow grazing under short-term lease, i.e. any activities
are short-lived and extensive.
Field crop and
It is a field crop and grazing zone. It is an area of transitional agriculture,
grazing
where farming is carried on. Farmers do not wish to invest capital. Hired
labour is expensive. It is more profitable to find jobs in city than to work
on farms. Farming, therefore, tends to be extensive.
Dairying and
It is a broad zone of dairying and field crops. The zone is outside the price
field crop
mechanism of the city in terms of land use being influenced by anticipated
urbanization. It is within the city’s influence in a marketing sense because
it constitutes the major part of fresh milkshed of the metropolitan area.
Specialized feed It is a zone of specialized feed-grain livestock (e.g. the Corn Belt). The
grain livestock economy of the farms is not under the direct influence of the metropolitan
area. It continues to serve, and be influenced by a national market.
Evaluation on Sinclair’s Model
Sinclair’s model stress on the influence of the anticipation of urban encroachment, therefore, it is applicable to
areas under rapid urban expansion and near to urban centres.
Urban expansion is usually found to be chaotic and irregular, therefore, concentric rings in Sinclair’s model is
unlikely to be found.
Other than a competitor of land use, urban still act as a major market of agricultural products. Therefore,
intensive market gardening can still commonly be found near to urban fringe.
In continental scale, the friction of distance and distance decay are found to be more significant than
anticipation of urban encroachment because most area is far away from urban areas and out of the urban
influence. E.g. the agricultural land use pattern in Continental Europe.
Just like von Thunen’s model, Sinclair’s model also relies heavily on market forces and tend to ignore
institutional factors. For example, the state may reserve a large proportion of agricultural lands for grain
production for national security reasons. (The policy of China in 1960’s)
Also the designation of green belts in the urban-rural-fringe could discourage the speculative activities
referred by Sinclair and help preserve agricultural lands.(The green belt around Greater Tokyo)
Protective tariffs and import quotas also restrict the development of international regional specialisation and
world-wide market described by Sinclair. (Financial subsidies on farming in Western Europe)
Collective farming in Communist countries
The perception of farmers is an important factor which is neglected by Sinclair. In Hong Kong, intensive
market gardening and abandoned land can be found next to each other. The decision making of different
individual farmers then become a more important factor.
Von Thunen and Sinclair Models
Von Thunen Models
Assumption / conditions 
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isolated states
one market
uniform plain
economic man
perfect competition
backward transport
Sinclair Models
 world-wide market
 mass production and
transportation urbanization
and expansion of
metropolitian area
 uniform plain
 economic men
 advanced and improved
transport & technology
 change of dietary habit for
more fresh, expensive and
exotic food
 urban farming
 vacant and grazing
 field crop and grazing
 dairying and field crop
 specialized feed grain livestock
Cropping pattern






Production methods
 production intensity decreases  production intensity increase
with increasing distance from
with increasing from the
market
metropolitian area
Key concepts
 locational /economic rent
 distance decay relationship
Modifications
 small town as another market
 navigable river
 zones of fertile land
horticulture
wood
6-year rotation
7-year rotation
3-field system
stock farming
 competition of land for urban
uses
 value of agricultural landuse
 locational rent of urban and
agricultural uses
 distance increase relationship
 farmer's preference
 government etc.
Application
 Real world examples:
hill villages in the Mediterranean
lands of Europe
Uruguay
Intensity of agriculture in
Europe in 50's and 60's
 Real world examples:
metropolitian areas of US
Midwest
 Difficulties:
 oversimplification of
assumptions
 pattern of urban sprawl
 dynamic nature of agricultural
land use
 government policy
Difficulties:
oversimplified
outdated
fail to recognize the role of
government
 Applicability in Hong Kong
 fail to include behavior factors
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
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 Applicability in Hong Kong