The concept explains agricultural land use patterns based on transportation costs and market prices. It posits that agricultural activities are arranged concentrically around a central marketplace, with land use intensity decreasing as distance from the market increases. The model assumes a single market, uniform landscape, and farmers seeking to maximize profit. For example, activities like dairy farming and market gardening, which involve perishable goods and high transportation costs, are located closer to the market. Extensive farming practices, such as grain cultivation, are situated further away due to lower transportation costs relative to their value.
Its significance lies in providing a foundational understanding of spatial economic relationships and factors influencing agricultural land distribution. It highlights the role of transportation costs in shaping economic landscapes and offers a framework for analyzing regional variations in agricultural production. Historically, it has been a cornerstone in agricultural economics and geography, influencing subsequent models and theories related to location decisions and land use planning. Its benefit is to have a method of understanding the distribution of products.
