Vertical Farming Brings Tremendous Efficiency

20 February 2021

Mike Zelkind is CEO and co-founder of a vertical farming company, 80 Acres Farms, based in the United States. The company started five years ago and has made considerable strides in growing vegetables in an eco-friendly and automated indoor environment. Today 80 Acres Farms, along with technical sister company Infinite Acres, proves vertical farming is more than just a vision of the future. "It's all about controlling the micro-climate, and we can do that better than anyone else because of the patented climate technology developed by Infinite Acres." 

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Mike Zelkind had been active in the food industry for decades with deep experience working with traditional farms and supply chains before founding 80 Acres Farms with Tisha Livingston. "The current food supply chains are very good, food is available everywhere, but the quality is not always as it should be. Food travels way too many miles, and it's not always sustainably grown." When Zelkind and Livingston sought to change how people eat, they wanted to bring high-tech greenhouses to North America. They went on a quest around the world, starting with the Netherlands, studying greenhouses.

The "lightbulb" went on while visiting a greenhouse on the sunniest day in the middle of June. The white-washed greenhouse, blocking out the heat of the sunlight but still supplementing sunlight with artificial lights. "That's when we realized; greenhouses still have to add supplemental lighting, which requires capital and energy to run them, but heating and cooling those greenhouses isn't free, and you don't control the environment that well. You have no control over the microclimate, which means you can't control the plants' stress response and drive nutrition. We thought there has to be a better way."

In 2016, the vertical farming industry was starting to develop. 80 Acres built their first commercial farm and quickly realized that to scale the business into something meaningful, egoless collaboration was essential. They collaborated with companies such as Priva. "This resulted in an excellent relationship, which eventually led to the creation of Infinite Acres," says Zelkind. Priva, 80 Acres, and Ocado formed Infinite Acres in 2019 to scale vertical farming globally."

Next level of controlled environment

Zelkind would like to emphasize that he values all forms of agriculture and horticulture. "Let's be clear: I am very pro-farmer, in every way- the demand for fresh food for a rising population is crucial. Vertical Farms are expensive to build, but with much higher yields and drastically improved control to maximize nutrition, we can take farming to a whole new level. Farming is a tough job, and there are not that many top growers available worldwide. We thought we could do it differently and find a way to make it easier to get those good results consistently."

Six years ago, Zelkind knew the technology did not exist to scale vertical farming. "But the trends were moving in the right direction. Data science has become more prevalent and LED lights cheaper, automation was improving, sensors were improving, and crop science was advancing rapidly. With the right collaborative partners, 80 Acres Farms has built eight vertical farms since 2016. Their latest fully-automated farm is a culmination of their years of learning. "We wanted to grow significant commercial volumes with a broad range of produce– not just lettuce, but also tomatoes, cucumbers, strawberries, etc. We knew that once we could start growing these products in commercial volumes, it would become interesting for retailers. We want to offer a high-quality product at a reasonable price, not cheap, but at the right price. It is all about value." Zelkind concluded, "Serving the consumer is the core of 80 Acres Farms. Customers have spoken! They want; flavorful, clean, fresh, sustainably grown produce, with transparency– at a fair price."

Failure turned into success

It all sounds straightforward, but it isn't, says Zelkind. "To get where we are today, we had to keep going forward. At first, we designed and built all the technical installations, and we failed– but we kept testing and sharing knowledge with our partners. We were fortunate to have started with relatively small farms, making it possible to learn quickly. And over the years, failure turned into success." Zelkind continued, "We still have a long road ahead of us. If you compare this to a soccer match, we have only passed 15 minutes in the first half. On the other hand, two years ago, we weren't even on the field."

The food-growing process that takes place at 80 Acres Farms is not that different from traditional greenhouses, Zelkind says. "With vertical farming, it's all about controlling the micro-climate, and we can do that better than anyone else because of the patented climate technology developed by Infinite Acres." The consistent temperature, humidity, and airspeed customized for each crop. Advanced lighting controls allow 80 Acres Farms to deliver the exact spectrum and intensity of light for each crop and growing phase. 80 Acres Farms uses a proprietary interlaced network of vision and sensor technology to monitor all aspects of the growing environment to assure high quality and high yield growth. Intelligent fertigation systems infuse the right amount and type of nutrients at precisely the right time and free of harmful contaminants. "Through our Infinite Acres Collaboration, we are willing to sell those technologies and license those techniques because we want to bring that to the world. We can't scale up fast enough ourselves, so there is no reason to keep this knowledge from others."

Push the crops on command

After all, it's still crop science, Zelkind continues. "It's not just pure technology, but also about knowing how a plant grows, breathes, trans-evaporates, and uptakes nutrients. We believe that's where machine learning and data science come into play. With good technology, we can optimize CO2, root zone temperature, airflow, and all of these things to come up with the right recipe for every crop and grow at a very high level of efficiency. We can push those crops and stress those crops on command instead of randomly because of weather influences. We control the crops¬– so our plants grow differently. We can gain tremendous efficiency in our cultivation. We can use different techniques and recipes to make lettuce redder or to get more tomatoes on a tranche."

In a certain way, you could say 80 Acres Farms is reinventing horticulture. "We are getting the most out of the original genetics of the crops. Dutch greenhouses are the most efficient because the Netherlands has the right climate, and the temperature drops naturally. Dutch growers have learned how to grow the best crops possible within those natural environmental conditions. But the recipes are not necessarily the best for the plant's genetics; they are the best for optimizing those crops for those conditions.

80 Acres Farms doesn't have variable conditions. We can control how much the temperature has to drop. It's all about giving the crop what it needs. Can 80 Acres Farms' tomato taste completely different and sweeter? Absolutely! We can achieve that more easily and in a cheaper way. Once you have built the infrastructure, it doesn't cost anything to control that. Zelkind continues, "If you keep doing things the same way as you are doing today, vertical farming is way too expensive, but who says you have to do everything in the same way? We are doing it differently, and we are successful with that. For us, this is the future of horticulture."

Is AppHarvest the Future of Farming?

Special purpose acquisition companies, or SPACs, are red-hot right now, with investors clamoring to get into promising young companies.

In this video from Motley Fool Live, recorded on Jan. 28, Industry Focus host Nick Sciple and Motley Fool contributor Lou Whiteman discuss AppHarvest, one such SPAC that is looking to disrupt the agriculture industry. Here are the details on what AppHarvest wants to do, and a look at whether the company represents the future of farming.

Nick Sciple: One last company I wanted to talk about, Lou, and this is one I think it's -- you pay attention to, but not one I'm super excited to run in and buy. It was a company called AppHarvest. It's coming public via a [SPAC] this year. This vertical farming space. We talked about Gladstone Land buying traditional farmland. AppHarvest is taking a very different approach, trying to lean into some of the ESG-type movements.

Lou Whiteman: Yeah. Let's look at this. It probably wouldn't surprise you that the U.S. is the biggest global farm exporter as we said, but it might surprise you that the Netherlands, the tiny little country, is No. 2. The way they do that is tech: Greenhouse farm structure. AppHarvest has taken that model and brought it to the U.S. They have, I believe, three farms in Appalachia. The pitches can produce 30x the yields using 90% less water. Right now, it's mostly tomatoes and it is early-stage. I don't own this stock either. I love this idea. There's some reasons that I'm not buying in right now that we can get into. But this is fascinating to me. We talked about making the world a better place. This is the company that we need to be successful to make the world a better place. The warning on it is that it is a SPAC. So it's not public yet. Right now, I believe N-O-V-S. That deal should close soon. [Editor's note: The deal has since closed.] I'm not the only one excited about it. I tend not to like to buy IPOs and new companies anyway. I think the caution around buying into the excitement applies here. There is a Martha Stewart video on their website talking up the company, which I love Martha Stewart, but that's a hype level that makes me want to just watch and see what they produce. This is just three little farms in Appalachia right now and a great idea. This was all over my watchlist. I would imagine I would love to hold it at some point, but just be careful because this is, as we saw SPACs last year in other areas, people are very excited about this.

Sciple: Yeah. I think, like we've said, for a lot of these companies, the prospects are great. I think when you look at the reduced water usage, better, environmentally friendly, all those sorts of things. I like that they are in Appalachia. As someone who is from the South, I like it when more rural areas get some people actually investing money there. But again, there's a lot of execution between now and really getting to a place where this is the future of farming and they're going to reach scale and all those sorts of things. But this is a company I'm definitely going to have my radar on and pay attention to as they continue to report earnings. Because you can tell yourself a story about how this type of vertical farming, indoor farming disrupts this traditional model, can be more efficient, cleaner, etc. Something to continue paying attention to as we have more information, because this company, like you said, Lou, isn't all the way public yet. We still got to have this SPAC deal finalized and then we get all our fun SEC filings and quarterly calls and all those sorts of things. Once we have that, I will be very much looking forward to seeing what the company has to say.

Whiteman: Right. Just to finish up along too, the interesting thing here is that it is a proven concept because it has worked elsewhere. The downside of that is that it needed to work there. Netherlands just doesn't have -- and this is an expensive proposition to get started, to get going. There's potential there, but in a country blessed with almost seemingly unlimited farmland for now, for long term it makes sense. But in the short term, it could be a hard thing to really get up and running. I think you're right, just one to watch.

Bees Are Dropping Dead In Brazil And Sending A Message To Humans

Pesticide Use In Brazil Sparks Concern Among Environmentalists

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By Bruce Douglas and Tatiana Freitas

August 19, 2019

Death came swiftly for Aldo Machado’s honey bees. Less than 48 hours after the first apis mellifera showed signs of sickness, tens of thousands lay dead, their bodies piled in mounds.

“As soon as the healthy bees began clearing the dying bees out of the hives, they became contaminated,” said Machado, vice president of Brazil’s Rio Grande do Sul beekeeping association. “They started dying en masse.”

Around half a billion bees died in four of Brazil’s southern states in the year’s first months. The die-off highlighted questions about the ocean of pesticides used in the country’s agriculture and whether chemicals are washing through the human food supply — even as the government considers permitting more. Most dead bees showed traces of Fipronil, a insecticide proscribed in the European Union and classified as a possible human carcinogen by the U.S. Environmental Protection Agency.

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European honey bees sit on hives in Sao Roque | Photographer: Patricia Monteiro/Bloomberg

Since President Jair Bolsonaro took office in January, Brazil has permitted sales of a record 290 pesticides, up 27% over the same period last year, and a bill in Congress would relax standards even further.

Manufacturers of newly permitted substances include Brazilian companies such as Cropchem and Ouro Fino, as well as global players including Arysta Lifescience Ltd., Nufarm Ltd. and Adama Agricultural Solutions Ltd. Giants such as Syngenta, Monsanto, BASF and Sumitomo also won new registrations.

The fertile nation is awash in chemicals. Brazil’s pesticide use increased 770% from 1990 to 2016, according to the Food and Agriculture Organization of the United Nations. The Agriculture Ministry says that Brazil ranks 44th in the world in the use of pesticides per hectare and that, as a tropical country, it is “incorrect” to compare its practices with those of temperate regions.

Still, in its latest food-safety report, Brazil’s health watchdog Anvisa found that 20% of samples contained pesticide residues above permitted levels or contained unauthorized pesticides. It didn’t even test for glyphosate, Brazil’s best-selling pesticide, which is banned in most countries.

The silent hives, critics say, are a warning.

“The death of all these bees is a sign that we’re being poisoned,” said Carlos Alberto Bastos, president of the Apiculturist Association of Brazil’s Federal District.

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A beekeeper handles a swarm of European bees | Photographer: Patricia Monteiro/Bloomberg

Agriculture is the biggest contributor to Brazil’s growth, composing around 18% of the economy. Its power — from pop culture to politics — is unmatched. Major producers sponsor samba groups, as well as a nationwide “little Ag” school program and arguably, the most influential grouping in congress.

Like U.S. President Donald Trump, Bolsonaro was elected with strong support from agribusiness and has expressed disdain for environmental concerns. “This is your government,” Bolsonaro promised lawmakers from the agriculture caucus, and his administration has allowed the industry wide leeway to use whatever chemicals it likes.

About 40% of Brazil’s pesticides are “highly or extremely toxic,” according to Greenpeace, and 32% aren’t allowed in the European Union. Meanwhile, approvals are being expedited without the government hiring enough people to evaluate them, said Marina Lacorte, a coordinator at Greenpeace Brazil.

Brazil Pesticides

Government approved a record number of products this year

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“There isn’t another explanation for it, other than politics.” she said.

Easing pesticide approvals was a campaign commitment for Bolsonaro. The agriculture sector has complained for years about slowness.

“Registrations are the biggest barrier,” said Flavio Hirata, an agrochemical specialist at Allier Brasil consultancy. “The world’s largest pesticide market can’t be limited to a few companies.”

Roughly half of the approvals are ingredients, not final products, said Andreza Martinez, manager for regulation at Sindiveg, a group representing pesticide producers. Varying chemicals is important as pests develop resistance to formulas, she said.

“It brings more tools to farmers, but that doesn’t mean an increase in the use of products in the field,” she said.

The variety, however, alarms toxicologists. “The higher the number of products, the lower our chances of safety, because you can’t control them all,” said Silvia Cazenave, a professor of toxicology at the Catholic Pontifical University of Campinas.

Brazil’s health ministry reported 15,018 cases of agricultural pesticide poisoning in 2018, but acknowledged that this is likely an underestimate.

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A vehicle sprays a soybean field near Campo Verde, Mato Grosso state, Brazil | . Photographer: Yasuyoshi Chiba/AFP via Getty Images

One victim was Andresa Batista, a 30-year-old mother of three. In March 2018, she went to work picking soybeans on one of the plantations on the plains surrounding the capital, Brasilia. Soon, she started feeling dizzy and nauseated — and then she passed out.

More than 40 farmhands fell ill that day, according to Batista, so many that they were divided into three groups and taken to different hospitals. The first medical team to attend Batista also became unwell, prompting the hospital to destroy her clothes, including her underwear. Still, Batista and most of the others were cleared to work again two days later. Almost as soon as they started, they collapsed.

Over a year later, Batista still can’t work. She has difficulty eating without vomiting, can’t go to the toilet without medicine, can’t go in the sun without her skin swelling and she’s lost around 30% of her vision. Doctors can’t give her a prognosis due to uncertainty about the type of pesticide that poisoned her.

“That day, our lives ended,” she said. “We’re not the same people we were before.”

Court documents show that Dupont do Brasil S.A., the company that managed the field, agreed to pay damages of 50,000 reais ($13,000) to one of Batista’s coworkers that day. Batista said the company paid her 40,000 reais in an out-of-court settlement. Dupont’s press office said it could not comment on the case due to legal restrictions.

The government said all cases of poisoning must be investigated, and it would introduce a decree to strengthen the oversight and training process for pesticide handling.

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A pesticide vehicle on a soybean farm in Mato Grosso state | Photographer: Paulo Fridman/Corbis via Getty Images

Despite stories such as Batista’s, Congress may accelerate approvals yet further, rebranding pesticides as “agricultural defenses” and substituting the requirement to identify potential harm with a simple risk analysis.

Brazil’s National Cancer Institute argued the measure would allow pesticides with “carcinogenic characteristics, endangering the population.” But Alceu Moreira, head of the lower house’s agriculture caucus, is certain it will become law.

“There’s this need to create this international narrative that harms the image of Brazilian agriculture, as if we were using excessive levels of pesticides,” he said. “We’re not.”

Brazilians may disagree. Carrefour Brasil, a supermarket chain, plans to increase its offering of organic products by 85% in 2019. Tatiana Carvalho, a 31-year old who runs a small organic delivery service in Brasilia, says sales have increased constantly since she started four years ago, despite the country’s sharp recession.

She attributes her success to two things: greater consumer awareness and the government’s decision to authorize ever more pesticides.

— With assistance by Simone Preissler Iglesias, and Rachel Gamarski

Lead Photo: A beekeeper inspects his newborn European bees in Sao Roque, Sao Paulo state, Brazil.

Photographer: Patricia Monteiro/Bloomberg