Agricultural Location Theory 1: Basic Models

Agricultural location theory deals with both the location — allocation process of land uses by farmers, and the spatial organization of agricultural land uses. The major term in its classical versions is economic rent relating to some form of surplus. Ricardo's theory emphasized the physical qualities of land and urban demand as major determinants in rent production. Von Thünen's theory emphasized distance from farm to market as well as transport costs, yield, market prices, and production costs as rent determinants. Modern versions of the theory provided simple models which relate explicitly to transportation costs. The theory has been criticized mainly for its many limiting assumptions.