2Introduction Von Thunen Model Explain the agricultural landuse at a given locationPut the emphasis on economic factors rather than treat physical factors as the main forces Distance from market
3Aim of Von Thunen ModelShowing how and why agricultural landuse varies with the distance from the marketEconomic rent net return from a unit of land
4A. Assumptions of the model A. Explicit assumptionsB. Implicit assumptions
5A. Explicit assumptions 1. An isolated state2. Centrally located market the sole urban market3. Isotropic plain production and transport costs were the same everywhere4. Uniform transportation and transport costs Only one form of transport (Wagon) Increase distance, increase transport cost5. Farmers are economic men and aim at maximizing profits6. Same market price
6B. Implicit assumptions 1. Land use competition under a capitalisticeconomy2. Economic rent is the determining factor3. Productivity could be raised4. Steepness of an economic rent curves are governed by the degree of perishability of farm produce and the relative ease of transporting\
7B. Implicit assumptions 5. Growing of temperate area crops6. No catastrophic event7. No chance factor8. All parties are price-takers under perfect competition
8Why did Von Thunen establish so many assumptions? Simplify the complex reality
9B. Concepts of the models Economic RentDistance decay mechanism
10A. Economic rent Net return Highest bid rent ability Displace all othersExercise
11A. Economic rent Net return = 1. Market price – 2. Production cost – 3. Transport cost1. Farmers got the same price (revenue) for their crops2. Production cost = constant3. Transport cost increase with distance= Net return decreases with increasing distance from the market
13Economic rent --- Conclusion Different crops have different location rent distribution patterns (bit rent curves) Different crops compete with each other’s farmland Concentric land use pattern was formed
15B. Distance decay mechanism Locational rent decreasing with increasing distance from market
16Net return decreases with increasing distance from market Describe how the net profit from wheat growing varies with distance from the urban market.Net return decreases with increasing distance from market At the market, transport cost contributes nothing to total cost. As there is no transport cost incurred, net return at market= market price – production cost= $40 - $10= $30
17At point 180km from the market, net return = $0, farmers would not produce because there is no incentive.Beyond point 180km from market, a loss will be incurred in producing any crops. Thus, farmers would not produce any crops.
18Economic Rent + Distance Decay Mechanism Examination Practice
25Theory of the model A. Intensity Theory Land use intensity declines with distance from the market.More intensive farming activities tend to locate near the market. Less intensive farming activities tend to locate far away from the market.
26B. Crop TheoryCrops with the highest economic rent will be grown. This concept applies to any location.
281. Free cash cropping (Market Gardening) Horticulture (vegetables and fruit) and dairyingPerishable as close as possible to marketLow speed of transportNo refrigerationRequire milk and vegetable in city + price are high higher economic rentIntensive labour input, multi-cropping, heavy fertilizingHorse provide motive power
292. Forestry (firewood) Great demand of wood Bulky (heavy and big) High transport cost = economic rent decrease fast with increase of distance
303. Crop Alternation System (Six-year crop rotation) Crop without fallowing6-year crop rotation2 years of rye (黑麥)+ 1 year potato + 1 year barley (大麥)+ 1 year clover (三葉草)+ 1 year vetch (巢菜)Soil conserved by rotation
314. Improved System (Seven-year crop rotation) Zone of farming, fallow and pastureLess intensive7-year crop rotationRye = 1/7Barley = 1/7Oats = 1/7Pasture = 3/7Fallow = 1/7Prodcut: rye, butter, cheese live animals
325. Three-field system1/3 pasture1/3 field crop1/3 fallowRotation
34D. The modified patterns of the Von Thunen Model
35In 1826, Von Thunen noted the followings: 1. Production costs are nothing simple2. There is no large town that does not lie on a navigable river or canal3. Competing markets4. Different places possess different physical factors5. Farmers do not maximize profits
36The modified patterns 1. Additional of a navigable river Navigable river with lower transport cost
372. A new railway connecting the city and its fringe area 2 or more kinds of transportsThe actual cost = distance traveled by each methodNot physical distance, but economic distance
383. Presence of a subsidiary town as a second market
394. Localized fertile soil or localized infertile soil/ hilly terrain
405. Variation in farmers’ amount of information and their abilities to use the information
45Market cost and Production cost 1. Increase in market price and decrease in production cost lead to an increase in profits expansion of extensive margin2. Decrease in market cost and increase in production cost lead to an decrease in profits contraction of extensive margin
47Transport cost3. Transport cost has little effect on farms located near the market4. Increase in transport cost contraction of the concentric ring because farms near the extensive margin become unprofitable5. Decrease in transport cost extensive margin expand
48Summary table of the effects of change in market price, production cost and transport cost increasedecreaseProduction costsTransport costsResults:Profit levels increaseExtensive margin expandsProfit levels decreaseExtensive margin contracts
50Merits A. show the importance of economic factors B. show how does distance affect intensityC. showed the change of agricultural land use pattern (by transport cost)D. first theory to show the spatial distribution of agricultural activities
51DemeritsA. The assumption that there is the existence of an isolated state or a closed economy is unrealistic in general.B. Ignoring changeover timeC. Emergence of specialized regions characterized by a particular type of agricultural land use
52DemeritsD. In the real world farmers are satisfiers instead of economic menE. Cooperative production could be foundF. Neglecting the government policy
53DemeritsG. Freight rate in reality is not directly proportional to distance but is step-shaped or being divided into different freight rate zones.
54ConclusionMerits succeed in pointing out the transport cost and distance from the market constitute effect on the location of farming activitiesDemerits neglected the impact of urbanization on intensity of farming
56Sinclair Theory - Introduction Von Thunen’s theorySinclair TheoryPrimary force determining the pattern :transport costsUrbanization/Urban expansionintensity decrease with distanceIntensity increase with distanceStatic city with set boundariesCity expand quickly
57Sinclair Theory - Introduction In LDCTransport cost zoningIntensity decrease with distanceIn MDCtechnologyhuman organizationliving habits
58Sinclair Theory - Introduction Transport costs are not directly proportional to distance and bulkrefrigerationair-conditioning techniquesperishable commoditiesModern organizationlarge scale productionmass transportationlook for markets that are far awaynot single market, but national marketCompetition from other land use
59Sinclair Theory - Introduction Industrialized nations urban expansion, population growthUrban expansion farming land useIntensity increase with distanceSinclair's theory explains the agricultural pattern near modern urban areas
61Explicit Assumptions 1. A uniform plain 2. Farmers are economic men 3. Around and expanding cityi.e. Dynamic force4. Land use pattern is influenced by city’s price mechanismi.e. Urban land value>agricultural land value
62Implicit Assumptions1. The value of agriculture is affected by urban expansion and suburbanizationi.e. Population growth →Demand increase →Market price of crops increase2. Urban and rural land price difference is the main factor affecting rural land usei.e. Urban land is much more valuable than rural land, it can provide the highest economic rent to the farmers.
63Implicit Assumptions3. When the rural land locate near a modern urbanized area, it is anticipated that future land price will increase due to urbanization4. Land use competition exists between rural and urban areasThe types of crops that possess the highest return will displace other land uses.
66(1) How does the agricultural value change in these two models? In figure A the agricultural value decrease with increasing distance from the urban centerIn figure B The agricultural value increases with increasing distance form the market and it becomes stabilized afterwards
67(2) What are the reasons for such changes? In figure A, the Von thunen model applies. agricultural land use pattern depends upon the competition among various types of landuse of a particular piece of land. Economic rent is the controlling factor which is the difference between the total income received by a farmer for a crop grown on a piece of land and the total cost of production plus transport cost of that crop. Economic rent from any one landuse can be expressed as a function of distance from the market. The intensity of production of a particular crop will decline with the distance from the market.
68In figure B, the Sinclair model can be applied which shows the intensity of production increases with increasing distance from the city center.Urban expansion with population growth affects the value of agriculture. Urban land is more valuable than rural land and is able to give the higher bid. Therefore, the agricultural land near the market displaced for urban landuse.Land further away from the market/ C.B.D. is lower in value and is used for farm production.
69Highest in regions N onward and lowest at city center (3) According to Sinclair’s idea, describe the agricultural value of regions O-M, M-N, and N onward.Highest in regions N onward and lowest at city centerUrban land use which is more valuable tends to occupy the market area.
70(4) How would such changes in agricultural value (in both models) affect agricultural land uses? Ring like pattern is resulted in both figure, however,In figure A, farming intensity decrease with increasing distanceIn figure B, farming intensity increases with increasing distance
71A. Different urban and rural land prices Urban land is much more valuable than agricultural land Competition between urban land use and rural land use Urban land use displace rural land useAnticipating urbanization it is expected that developers and speculators will purchase the land with high price in future farmers hold the land in rather than having any farming activities
72B. Anticipation of urban encroachment is the main determinant in agricultural land use pattern For the area that is going to be urbanized, farmers are unwilling to put long-term investment on the farmland zone of temporary vacant & grazing is resultedAround an expanding city center, agricultural value increases with increasing distance up to a certain distance where the anticipation of urbanization ceases.It remains static afterwards.
73C. Intensity of agricultural land use and distance is positively correlated Anticipation of urbanization increases absolute value of the land increases relative value for agricultural utilization decreasesAs a result, intensity of agricultural land use decreases towards the city
78Sinclair Theory – The model Zone 1 (Urban Farming)Landchanging to urban useSubdividedHeld by speculatorsSmall production and scatteredUsing of greenhouseFarm factories Take place in building / multi-storey buildings
79Sinclair Theory – The model Zone 2 (Vacant & Grazing – Temporary)vacant land and land of temporary grazingland sell to speculatorsShort -term grazingShort-lived and extensive
80Sinclair Theory – The model Zone 3 (Field Crop & Grazing – Transitory)field crop and grazing zonetransitional agriculturewith urban anticipation in futuredo not wish to investExpensive labourLabour have better pay in cityextensive farming
81Sinclair Theory – The model Zone 4 (Dairying & Field Crop)dairying and field cropsoutside the price mechanism of the city in terms of landusei.e. not affected by the citymajor part of fresh milkshed of the metropolitan area
82Sinclair Theory – The model Zone 5 (Specialized Feed-grain Livestock)specialized fee-grain livestockE.g. the Corn Beltnot under the direct influence of the metropolitanServe and be affected by national market
84Modification of the model 1. Urban sprawl/Urban development is chaotic e.g. Urban sprawl develops along transport network Two cities may joint together with the above developmentAffect the ring patternInner zone VS outer zone Elimination of zones within the pattern (particularly the outer zones)2. Government policy land use patternE.g. new towns development in HK
85Role of government affecting agricultural pattern 1. Secure a home-grown supply of food in time of war e.g. Closed door policy in China during the period of Korean War2. Provide land to the landless farmers e.g. land reform, reclamation of marginal lands, waste lands and desert lands3. Builds transport networks to link up farmlands and markets4. Improve technology to reduce limitation of the physical environment on farming to increase production e.g. irrigation project in California, introduction of miracle rice in China
901. Describe the changes in the agricultural zones between 1970 and 1980. Expansion of marketArea of abandoned land increasedArea of fish ponds increasedExpansion of market garden cropContraction of fresh water paddyDisappearance of brackish paddy
912. How did quick urbanization after 1970 affect such changes? Expansion of market Anticipation of urbanization Urban land use has a higher land value Agricultural value decreases Area of abandoned land increased around market Contraction of fresh water paddy (subsistence farming)
923. Is the Sinclair’s model applicable here? 1. Abandoned land around the market Anticipation of urbanization2. Urbanization has induced the conversion of most paddy fields in subsistence farms into commercial garden farms Higher intensity near the market
93ConclusionGenerally speaking, the pattern conforms in a broad sense to the prediction of Von Thunen’s model but modifications by Sinclair is also applicable to the case of Hong Kong. Government policy Physical factors i.e. relief, availability of wateralso play important role in affecting agricultural pattern in HK
94Comparison of the Von Thunen Model and the Sinclair Model
95Von Thunen Model(a static model)Sinclair Model(a dynamic model)(A) Main PrincipleTransport cost proportional to distance from marketBase on economic rentIntensity decrease with increasing distance from marketAnticipation of urban encroachmentBase on agriculture valueIntensity increase with increasing distance from metropolitan area(B)Assumptions/condition-One market-Uniform pattern-Economic man-Perfect competition-Backward transport-Isolated state-World-wide market-Uniform plain-Advanced and improved transport and technology-Change of dietary habit for more fresh, expensive and exotic food-Mass production and transportation-Urbanization and expansion of metropolitan area
96Von Thunen Model(a static model)Sinclair Model(a dynamic model)(C) Cropping patternzone 1: Horticulturezone 2: Woodzone 3: 6-year rotationzone 4: 7-year rotationzone 5: 3-field systemzone 6: stock farmingUrban farmingVacant and grazingField crop and grazingDairying and field cropSpecialized feed grainlivestock(D) Production MethodsProduction intensity decreases with increasing distance from marketProduction intensity increases with increasing distance from the metropolitan area uo to a certain point
97Von Thunen Model(a static model)Sinclair Model(a dynamic model)(E) Key ConceptsLocational/ economic rentDistance decay relationshipCompetition of land for urban usesValue of agricultural landuseLocational rent for urban and agricultural usesDistance increase relationship(F) ModificationsSmall town as another marketNavigable riverZones of fertile landFarmer’s preferenceGovernment etcChaotic urban sprawl/ may eliminate the utter zone of agricultural activitiesGovernment
98Von Thunen Model(a static model)Sinclair Model(a dynamic model)(G) ApplicationReal world examples:Intensity of agriculture in Western Europestill applies in underdeveloped parts of the worldDifficulties:OversimplifiedOutdatedFail to recognise the role of governmentFail to include behavior factorsApplicability in Hong KongMetropolitan areas of US midwestapplies to industralized societyOversimplication of assumptionsPattern of urban sprawlDynamic nature of agricultural landuseGovernment policy
99Impacts of urbanization and industrialization on the farming pattern
100Industralization Process by which manufacturing industries develop from within a predominantly agrarian society Application of scientific methods to solving problems Accompanied by social and economic changes such as increase in birth rate, rise in per capita GNP
101Urbanization Migration of rural population into towns and cities An increasing proportion of the world’s population resides in towns Indicates a change of employment structure from agriculture to mass production and service industriesIndustralization Leads to Urbanization!!!
102(A) Alteration of farming Production Traditional farming methods (subsistence) modern farming methods (commercial)Positive impacts: increase output, solve food problemNegative impacts: disrupt ecosystem, pollutionIncrease in total crop yield and variety/ Low production costPositive impacts: increase total yield, diversification of crops, stable income, improve living standardNegative impacts: health impact
103(B) Alteration in rural land uses Change in general land use patternFarmlands change to urban uses e.g. commercial, industrial, residential, transportation etc.Positive impacts: economic developmentNegative impacts: lost of potential farmland
104Change in agricultural land use pattern Area of market gardening, fish ponds increasePositive impacts: diversification of crops, stable incomeNegative impacts: decrease production in traditional crops e.g. paddy riceIncrease abandoned landFarmlands are being held for speculative purpose due to the anticipation of urbanizationPositive impacts: NoneNegative impacts: lands cannot be fully utilized, waste of resources
105(C) Alteration in the structure of rural population Rural-urban migrationPeople move from rural to urban due to the higher living standard and more job opportunities found in the urban areaPositive impacts: NoneNegative impacts: Increase the number of economic inactive groups in the rural area, unbalanced sexual ratio
106Urban-rural migration People move from urban to rural due to the availability of flatland and pollution-free environmentsPositive impacts: problem of urban congestion could be solvedNegative impacts: increase rural population, increase landuse competition
107Case study: Hong Kong Alteration of rural landuses RESULTS: Mainland China was liberated in 1949 Influx of refugeesAccelerates Hong Kong’s population growthNew towns established E.g. Tsuen Wan, Shatin, Tuen MunRESULTS:Construction of towns and roads leads to a great loss of arable landFarm abandonmentRural decayE.g. rural labour force in Sai Kung North is shrinking
108Alteration in the structure of rural population Farmers lay the land in fallow on purpose of hoping to gain better returnBetter job opportunities attracts young rural populationRural-Urban migrationRESULTS:Labour shortage in the rural areaAging of rural populationIncrease the dependency ratio
109Alteration in farming production Increase in urban populationIncrease demand of certain kinds of farm products e.g. fish, fresh vegetables and flowersRESULTS:From rice field and pig raising to market gardening and fish ponds
110Newspaper Article---SAR Pig farms in mainland sought to stabilize supply (standard) 07/07 sat A lawmaker and some pig farmers have urged the government to help Hong Kong farmers establish farms in the mainland to ensure the city gets a steady supply pork at stable prices.Proposal: designating a special area in the mainland for Hong Kong pig farmers operations90% of farmers have surrendered their licenses, and 249 of the 265 registered local pig farms have been closed.
111Another example: HKAL 2003, Paper 2, #6 With reference to one of the farming regions in China, discuss the effect of market forces on agriculture in the last two decades. As a result of the Go West Policy, what would the impact of rural industrialization be on agriculture in western China?
112Positive impacts: Negative impacts: With Go West Policy, more resources are used for developing interior provinces of China such as Gansu ProvincePositive impacts:Farm labours shift to rural industries. Solve the problem of low productionDevelopment of industries such as food processing industries create demand for farm productsIncome from rural industries may be invested in farms and promote farm modernizationNegative impacts:Labour shortageLoss of arable land due to dramatic development of industriesPollutions affect water for irrigation; soil degradation from water and land pollution reduces farm productivity
114Discussion Positive impacts Negative impacts Possible remedies Effectiveness
115Positive impacts 1. Allow trading among countries 2. Countries could practice specialized farming according to their comparative advantage3. Improving farm efficiency by advanced technology
116Negative impacts 1. Promotion of farm commercialization Rely heavily on biotechnology2. Elimination of small-scale farms in LDCs by farm specialization in MDCs Trading of farm products among countries is needed3. Impact on natural ecosystem4. Affect the local people’s livelihood Small scale farms would be exploited by transnationals Lower farm wages in LDCs because Local agricultural products are less competitive
117Possible remedies 1. Provide subsidies 2. Improve infrastructure 3. Reduce taxes4. Develop collective farms5. Provide technological assistance6. Provide assistance
118Effectiveness Measures not effective in LDCs poor government farmers are having low educational level Lack of market awareness badly-skilled Reluctant to make changes Lack of capital
120Green RevolutionImprovement in farming methods due to technological improvement
121Farm technology 1. Mechanization 2. Application of agro-chemicals 3. Irrigation4. Drainage5. Greenhouse farming6. GM crops7. Global positioning system (GPS)8. Geographic information system (GIS)9. Satellite/Aerial photo
123Farm mechanizationProcesses that can be mechanized due to advancement of farming technologysubstitution for man powerincreasing agricultural productivityextending agriculture to marginal land
124Machines for cultivation, harvesting and processing of crops Examples ONLY! (DO NOT COPY!!!)Ploughing machines and tractorsSowing machinesTransplanting machinesElectricity operated pumps to draw water from nearby rivers e.g. plain of East China SprinklerHelicopters broadcasting seeds systems/ watering cropsSpraying machines Fertilization of soilsCombine harvesters Harvesting cropsConveyer belts Selection of fruits for saleTrains and trunks Transport crops
125Machines for rearing animals and harvesting animal products Examples ONLY! (DO NOT COPY!!!)Air conditioning lower the temperature in summersHeaters raise the temperature in wintersPipes, tapes and electric pumps provides drinking water for animalsElectric shearers wool cuttingMilking machines and refrigerated tankers keeping the milk freshLorries with refrigeration facilities transporting highly perishable products to nearby urban markets e.g. milk tankers
126Effects of farming mechanization Farm size enlarged and made less fragmentedFarmland opening of some marginal lands for cultivationHigher efficiency of each worker quicken farming operation, more cropping in a year and farm yield and profits also increasesRural-urban migration rapid rural-urban migration/ depopulation in rural areSupply of workers solve the problem of labour shortage in MDCsHigher productivity and quality of productsLower cost of production cheaper in long term
127Problems of farm mechanization UnemploymentMachine management Deterioration of machines due to lack of maintenance Inappropriate use of machineUneven mechanizationHigh initial cost of farm machines Poor farmers in LDCs
129What is agro-chemicals? FertilizersPesticidesInsecticidesHerbicides
130Why use agro-chemicals? 1. Control insects which eat food crops2. Suppress weeds which complete with crops3. Increase both quantity and quality of food crops Improve quality: improve human health Improve quantity: solve the world food problem
131Use of pesticides = “Intensification” of farmland Enable greater food production without the expansion of agricultural land Increase farm inputs on a given area of farmland
132Problems with pesticides Destroy natural and semi-natural habitats Pesticides are toxic Harmful to human health and wildlife Effects on target pests and non-target species e.g. Affect beneficial organisms like honey bees Contamination of water source Contamination of food chains Affecting drinking water supply
133Strategies for tackling the problems Develop target-specific pesticides Control losses to water Enforce adequate handling and application procedures Organic farming
1357. Global positioning system (GPS) 8 7. Global positioning system (GPS) 8. Geographic information system (GIS)
136Why use GIS and GPS? Allow better farm management Collect, store view and analyze vast amount of dataAllow better farm managementImproving soil conservation practiceImproving efficiency e.g. precise application of chemicals and fertilizers e.g. precise application of irrigation water Over-application and Over irrigation could be avoided
137Bio-fuels Discussion Alternative energy resource Ethanol extracted from corn and sugarcaneDiscussion1. Advantages?2. Disadvantages?3. What are thereasons for theincreasing price foragricultural products?
138Bio-fuels Advantages: alleviating Global warming Clean Renewable Environmentally friendly Clean/ Non-toxic Less carbon dioxide and sulphur emission Easy to handle
139Disadvantages: bid up the price for food such as corn, sugarcane as demand increase the poor cannot afford leading to the occurrence of famine in less developed countries unpredictable environmental consequence Still release a certain amount of greenhouse gases
140Reasons for the increasing price for agricultural products 1. Increase in demand population growth2. Agricultural land use decrease urbanization in producing bio-fuels, land is specially designed for growing crops
141Further information…… 7 April 2008Time MagazineCover story
142In recent years, there have been significant changes in oil price In recent years, there have been significant changes in oil price. As a result, more farmers are involved in the development of alternative energy resources such as biofuels.How may the changing oil price in recent years affect the global crop production? To what extent is the increasing oil price a factor leading to the occurrence of famine in less developed countries? Suggest measures that can be carried out by governments to regulate the production of biofuels. Illustrated your answer with appropriate examples.
143Preconditions and difficulties in adopting advanced technology
144Difficulties concerned with the application of technology in farming Poor subsistence farmers cannot afford very costly inputsLow educational level Resistance to innovationSmall and fragmented farms Hinder the adoption of machinesLack of communication with the outside world
145Essay question 2006#7Advanced farming technology such as remote sensing, soil sampling and information management can help optimize agricultural production. Farmers will therefore be able to recognize differences in the field and to apply correct quantities of inputs in the right place at the right time.What are the ecological and economic advantages of using this advanced farming technology? Explain the conditions needed for the adoption of this technology. To what extent is such technology applicable in China?
146Section A – Natural Landscape A1– Climatic System Energy budgetAtmospheric moistureAtmospheric circulationClimatic variationA2 – Landform SystemPlate tectonicsDrainage systemA3 – Biotic SystemEcosystemSoilsVegetationA4 – Man-environment relationshipTropical rainforest environmentTropical desert environmentB. Agricultural LandscapeB1 – Farming systemsFarming as an ecological systemFarming as an economic systemB2 – Spatial patternsVon Thunen model/conceptsSinclair model/conceptsB3 – Impacts of urbanization and industrialization on farming