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Von Thunen presented a theory to account for forces behind locational pattern of agricultural activities. Von Thunen’s model is set in the economic conditions of early nineteenth century Europe. It is centred around an ‘isolated city’ with its agricultural hinterland. In this model, the transportation costs between the city market and hinterland increase directly with distance.
Farmers’ desire for maximum profits, according to Von Thunon, leads to the following conclusions:
1. The number of profitable options decrease with the distance from the city market.
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2. The nature of activity in the outer distances depends on declining profits based on transportation costs.
3. The nature of activity in inner distances depends on the desire for more lucrative alternatives.
The agricultural land use, thus, follows a concentric pattern and shows practical adaptation to modifications, such as introduction of a navigable river and another smaller city market (Fig.10.20).
Relevance of Von Thunen’s Model to Present Conditions:
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Though basic forces still persist in present circumstances when compared with those in the Europe of the last century, certain changes can be identified.
1. New and quicker models of transportation are available;
2. Transportation costs do not always vary similarly in all directions;
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3. Refrigeration has prolonged the life of perishable commodities like milk and vegetables;
4. Firewood is no more the major fuel.
Thus, Von Thunon’s model only provides a method or approach, which may be applied generally, without claiming universality.
The model is limited by the following assumptions:
1. All operators have complete knowledge about yield and prices;
2. The operators always make rational decisions about land use and cropping pattern.
Relevance of Von Thunen’s Model to Indian Conditions:
In the great plains of India, highly fertile lands surrounding the village settlements are devoted to perishable, fertiliser intensive crops; for example, vegetables, potatoes, oats, orchards, crops like rice, wheat, barley, pulses, sugarcane, gram, maize etc. are cultivated subject to the texture, drainage and other qualities of soil.
In the outer rings, fodder crops and inferior cereals are grown. After the initiation of tube well irrigation in the North Indian Plains, this pattern has been largely modified as the farmers with more intensive inputs can produce crops in distant fields.
The land consolidation has also modified the crop intensity rings. Studies in village Banhera Tauda in Hardwar, Uttar Pradesh, found the crop intensity decreasing with increasing distance from the settlement.
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The application of HYV seeds in India has disturbed the application of Von Thunen’s model. Developed modes of transport have made it possible to carry perishable goods to greater distances. So, the Von Thunen model is no longer operative in its original form.
Game Theory in Agriculture:
In this theory, to achieve a better understanding of the decision-making process, a game is assumed to have been set up between environment and the farmer. The environment makes its moves, such as drought Or excess precipitation, and the farmer chooses his options accordingly on the basis of the principle of ‘Test suited in worst situation”.
Less risk would give sub-optimal results. But results can be computed using a pay-off matrix. This theory is best suited for conditions of subsistence farming which is more vulnerable to severities of environmental conditions.