Von thunen theory of agricultural location upsc
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Johann Heinrich von Thünen, a Prussian landowner, introduced an early theory of agricultural location in Der isolierte Staat (1826) (The Isolated State). The Thünen model suggests that accessibility to the market (town) can create a complete system ofagricultural land use.
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Farmer like any other businessman wants to maximize profit. But his profit depends on three variables:P=V-(E+T)Profit P=Value of his produce (V) MINUS [production expenses (E) + transport cost(T)]without going into all details, when you plot a graph of distance vs profit for various crops/agro-activities…the ultimate wisdom is:
As the farmer moves away from the city, number of profitable options decreases. Since Transport cost gets higher, he has to pick an activity with lower production cost (e.g. sheep grazing.) to make any profit.
if you apply Van Thunen
As the farmer moves away from the city, number of profitable options decreases. Since Transport cost gets higher, he has to pick an activity with lower production cost (e.g. sheep grazing.) to make any profit.
if you apply Van Thunen
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