"New York Is Ideally Suited For Greenhouse Production"

August 10, 2021

Intergrow Greenhouses is excited to announce the opening of its newest expansion in Upstate, NY. The 10-acre project will produce over 3 million pounds of fresh produce a year, feeding millions across the Northeast and Mid-Atlantic all of the way down to the Southeast. 

“We’ve been operating in the US since 1998, and always in New York State.” says Dirk Biemans, president of Intergrow Greenhouses. “Our European partners saw the opportunity for greenhouse-grown produce here in the US back in the 90s and we quickly set up shop. The climate here in New York is ideally suited for our greenhouse production, resulting in the best flavor, quality, and consistency for our retail partners all year. We are primed for successful growth here in NY. With nearly 60% of the US population only 24 hours from us, and growing consumer demand for local and domestically grown produce, we’ve got to be ready."

And a local company they truly are. Biemans reports over 70% of the 350 employees at Intergrow are permeant residents of New York State and that number is growing. “Labor is an extremely important part of our business model, if we can recruit, train, and retain local labor it can yield huge advantages for us.”

The new facility will be outfitted with HPS grow lights, adding to Intergrow’s ever-increasing winter offerings. It also boasts diffused glass for better light distribution and heating and fertigation systems. However, Biemans reports there were several challenges and delays that threatened the project finishing on time.

“Ocean freight is crazy right now, not only have prices increased but there’s been a huge problem with on-time arrivals and customs issues. The majority of this project came in prefabricated from Europe, which offers a lot of benefits but our team and chosen suppliers were not quite ready for the logistical challenges in 2021. However, we were able to pull through, overcoming those challenges, and working with the cards we were dealt. This project was successfully completed on time putting us at a total of 105 acres under glass.”

For more information:
Intergrow Greenhouses
www.intergrowgreenhouses.com 

Lead Photo: Propagated tomato plants await their final placement in Intergrow’s Newest 10-acre greenhouse.

NL: Celebrating 15 Years of Horticultural Development At The Horti Science Park

August 9, 2021

Wageningen University & Research (WUR), the Delphy Improvement Centre, and the Municipality of Lansingerland are celebrating fifteen years of scientific development in the field of greenhouse horticulture. Save the date: various activities will be organized during the ’Horti Science Park Event Weeks’, held this year from 20 September to 8 October. From looking back, we are now looking forward to the role that the Horti Science Park will be playing in the future.

The autumn of 2006 saw the launch of a number of cultivation trials at the Delphy Improvement Centre and Wageningen University & Research (Greenhouse Horticulture Business Unit) sites, both located at Violierenweg in Bleiswijk (Municipality of Lansingerland). Pioneering research was conducted in support of both the Dutch and international greenhouse horticulture sector at this Horti Science Park in the past decade and a half.

In addition to devising and developing the Next Generation Greenhouse Cultivation project, a great deal of research was carried out on the application of LED lighting with a view to creating sustainable cultivation systems. The development towards digital cultivation in autonomously controlled greenhouses with the application of newly developed plant sensors is in full swing and will result in far-reaching changes regarding the management of greenhouse horticulture. The development of production systems has always been a part of this, just as several greenhouse prototypes are now being tested and scientific knowledge in the area of cultivation is being developed in support of Vertical Farming practices.

The Municipality of Lansingerland is pleased with the presence of these two leading research institutions in greenhouse horticulture and therefore wishes to further develop its position as a knowledge-intensive municipality focusing on greenhouse horticulture. It is currently collaborating with entrepreneurs and residents on a ‘Horti Science Vision’, which should comprise the basis for guiding greenhouse horticulture research and future plans on themes such as education, employment, and space.

The opening of the ‘Vertical Farming Fieldlab’ by Wageningen University & Research (WUR) and Delphy is scheduled to take place during the ‘Horti Science Park Event Weeks’, which will be held from 20 September to 8 October. In addition to the above, the Municipality of Lansingerland, WUR and Delphy, in conjunction with organizations such as Glastuinbouw Nederland and Greenport West-Holland, will be organizing at least ten other events. Examples are the Knowledge Day for entrepreneurs in horticulture, the WaterEvent and an afternoon symposium on taste research. Meet-ups on the 'Horti Science Vision' will also be planned with young people who are interested in the horticultural sector and residents of the municipality. All events will be looking towards the future based on the knowledge we have today.

For more information:
Wageningen University & Research
www.wur.nl 

Agriculture Is Blooming In The Desert

August 9, 2021

Mainly produce and fruit, the UAE must import food because the arid environment is not conducive to growing a variety of leafy plants. While importing food ensures the population does not go hungry, it often results in more expensive, less fresh food, with a lower nutrient density. And, as we saw with covid-19 last year, food supply chains are fragile. Relying on other countries to grow your food is no longer always reliable.

Controlled environment agriculture, like greenhouses and vertical farming, offers a hyper-local alternative to importing food by making agriculture accessible in harsh environments. With the use of new technologies, companies can capitalize on the sprawling desert and sunshine. The UAE's three deserts offer a massive amount of real estate for building warehouses for vertical farms and an almost unlimited solar power supply. Although water is scarce, vertical farming uses over 90% less water than traditional farming.

Photo: an indoor vertical farm growing greens

Both the government and the private sector are funding an agricultural revolution

In 2018, the UAE government announced plans to be the top country in food security (measured by the Global Security Index) globally by 2051 and in the top ten by 2021--as of last year; it ranked 42. Like Singapore’s “30 by 30” plan, the government has since aggressively funded food startups and partnered with larger companies, including those from other agtech centers of excellence like the Netherlands and Korea.

In 2020, the Abu Dhabi Investment Office invested $100 million in agtech firms, including local vertical farm Madar Farms, US-based vertical farm AeroFarms, an irrigation company RDI, and a local fertilizer company called RNZ. The Ministry of Climate Change and Environment (MOCCAE) teamed up with Shalimar Biotech Industries to build twelve vertical farms. The MOCCAE and partnered with the Majid Al Futtaim group to build vertical farms in their malls. And it’s not all controlled environment agriculture. The Abu Dhabi Agriculture and Food Safety Authority (ADAFSA) approved five investment projects, worth $142 million, to establish fish, vegetable, fruit, cattle, and poultry farms on a total land and sea area of approximately 43 million square feet.

Just this month, His Royal Highness Sheikh Abdulaziz bin Ali Al Nuaimi, aka the “Green Sheikh,” flew to the US to visit Gotham Greens and the Green Bronx Machine--a Bronx-based organization that brings urban agriculture into school. In the past, he partnered with Stephen Ritz, founder of the Green Bronx Machine, to bring agricultural education and plant science initiatives to Dubai. Longtime friends with shared values on education and wellness, the two will partner on building farms in the UAE and developing culturally specific educational materials for children.

The 'Green Sheikh' collaborates with the founder of the Green Bronx Machine to educate kids in Dubai about farming in the desert.

In the private sector, Dubai is home to many different agtech companies. Badia farms produces lettuce, herbs, and microgreens for chefs, caterers, and restaurants. Madar farms is experimenting with other agtech solutions like container farms and indoor “kitchen gardens” for chefs. Crop one is planning to build the largest vertical farm in the world and partner with Emirates airlines. Green Factory Emirates partnered with veteran indoor growing experts from the Netherlands, GrowGroup IFS, to develop the world’s largest indoor farm (including vertical farming and traditional farming techniques) that will yield 10,000 tons of food annually. & Ever is not building a farm in Dubai yet, but their headquarters is based there. In Abu Dhabi, Pure Harvest opened a ‘smart’ hydroponic tomato farm that utilizes bees in its greenhouses. Another excellent use of indoor growing, Al Aliyo Hydrofarms is a hydroponic farm growing organic fodder for livestock.

Aquaculture is also present. Fish Farm boasts the largest fish farm in the UAE, with three fish hatcheries providing a local, sustainable source of shrimp, hammour, sea bass, and sea bream.

The future is bright and green

Given its large swaths of desert and government commitment to food security, it is no surprise that agtech is becoming a booming sector in the United Arab Emirates. Vertical farming and other local food initiatives have the potential to bring fresher, more nutrient-rich food to the region, provide jobs, educate the youth and continue to show the world that the UAE is always on the cutting edge of new technologies.

Why Lettuce Greenhouse Sector's Growth Is Focused In The U.S.

By Peter Tasgal

August 10, 2021

Greenhouses for lettuce and leafy greens are being built at a rapid pace across the U.S. In contrast, in neighboring Mexico there is no similar greenhouse production and in Canada there is very little — the primary exception being 11-acre Whole Leaf Farms located in Coaldale, Alberta. 

Based on my research, the primary driver for this U.S. phenomenon is investor comfort in making U.S.-based investments in leafy greens greenhouses, which are more expensive to build compared to tomato, cucumber and pepper greenhouses. 

For example, AppHarvest’s latest tomato greenhouse is expected to be 63 acres and valued at $139 million — just over $50 per square foot. In contrast, Bright Farms’ 280,000-square-foot leafy greens greenhouse in North Carolina cost $21 million, or $75 per square foot. Gotham Greens built a 100,000-square-foot leafy greens greenhouse in Providence, Rhode Island, that cost $12.2 million, or $122 per square foot. 

In addition to investor interest in the U.S. market, other potential factors affecting this phenomenon include:

• Temperature variance;

• Pricing certainty;

• Equilibrium capital leading the charge; and

• Generational knowledge in Canada.

Temperature variance

Lettuce and leafy greens perform best at cooler temperatures, up to 70 degrees Fahrenheit. Tomatoes, cucumbers and peppers, in comparison, grow best at temperatures in excess of 70 degrees Fahrenheit. 

As the U.S. has a more moderate climate than either Canada or Mexico, a band of greenhouses across the U.S. takes advantage of the more temperate climate. Historically, leafy greens greenhouses have been built in the middle and upper sections of the U.S. However, boundaries have moved. Revol Greens, for example, has a 10-acre greenhouse in Minnesota and is expected to build a 20-acre greenhouse in Austin, Texas, to be completed in 2022. 
 
Historically it has been more costly to keep a greenhouse cool rather than to heat it. However, alternative sources of energy and energy pricing incentives in parts of the southern U.S. have made it increasingly cost competitive to build greenhouses in this area. 

Pricing certainty

The cost to build a leafy greens greenhouse is more than a tomato, pepper or cucumber greenhouse on a per square foot basis and on a per pound basis. As a reference, the cost of AppHarvest’s tomato greenhouse is approximately $3 per one year’s production of pounds of tomatoes. In comparison, Bright Farms’ recent leafy greens greenhouse is over $10 per one year’s production of pounds of lettuce and leafy greens. 

This large cost structure variance requires greenhouse-grown lettuce to be priced at a premium. In contrast, greenhouse-grown tomatoes can and are priced directly with field-grown tomatoes. In the U.S. today, greenhouse-grown tomatoes make up the majority of fresh tomato sales. 

The risk for an investor in a premium product is demand fluctuation. Economic and other market conditions will have a greater effect on premium product demand compared to product with more commodity-like traits.

Equilibrium Capital leading the charge

Equilibrium Capital is a leading investor in the North American controlled environment agriculture sector. It closed its second fund (CEFF II) this past month, with a capacity of $1.022 billion. Its first fund, CEFF I, had a capacity of $336 million. Recent investments made by Equilibrium include:

• AppHarvest: $91 million non-dilutive investment to support the building of its second tomato greenhouse in Kentucky.

• FINKA: Expansion capital for the Mexican greenhouse company, which operates tomato, pepper and cucumber greenhouses, the product of which is primarily sold into the U.S. and Canada. This was Equilibrium’s first investment outside of the U.S.

• Little Leaf Farms: $90 million of debt and equity financing for the company, which is currently building a lettuce and leafy greens facility in Pennsylvania and is expected to follow with a facility in North Carolina.

• Revol Greens: $110 million of debt and equity capital to support its building of a large lettuce and leafy greens greenhouse in Texas.

FINKA is Equilibrium’s only investment outside of the U.S. to-date. 

Generational knowledge in Canada

According to the Ontario Greenhouse Vegetable Growers’ website, the organization formed in 1967 has “220 members who grow greenhouse tomatoes, cucumbers and peppers on over 3,000 acres.” 

Two of the largest growers in Canada, Mastronardi Produce and Mucci Farms, have invested primarily in building their current greenhouses. To the extent each has branched out, it has been primarily to berries and eggplants. Mastronardi and Mucci have little to no owned lettuce and leafy greens production across North America. 

Of note, in 2019 AppHarvest entered into a Purchase and Marketing Agreement with Mastronardi, under which “Mastronardi will be the sole and exclusive marketer and distributor of all tomatoes, cucumbers, peppers, berries and leafy greens” at its Morehead, Ky., facility (currently producing only tomatoes). 

Per the 10-year agreement, Mastronardi has a right of first refusal for any additional facilities established in Kentucky or West Virginia. The take-away is Mastronardi is willing to distribute and market greenhouse-grown leafy greens, venturing a reputational risk, but has not yet chosen the investment risk of operating its own greenhouses.

Speaking to the OGVG, most greenhouse operators in Ontario have chosen to put their resources into products they already know. When asked specifically about lettuce and leafy greens, OGVG said the cost to build this type of greenhouse is very expensive per unit of output.  

Recap

Some of the most seasoned greenhouse operators in North America are growing a range of produce types in the Ontario, Canada, area largely focused on tomatoes, cucumbers and peppers.

Each of these products grows best at higher temperatures than lettuce and leafy greens. Canadian operators who have been in the business for generations are potentially willing to distribute and market leafy greens, yet they have not been willing to make significant investments in the area. 

While leafy greens were once only grown in the Northern parts of the U.S., Revol Greens, backed by Equilibrium Capital, is building one of the largest greenhouses in Texas. Equilibrium Capital, the “smart money,” has only invested in U.S. CEA companies to-date. The exception is FINKA, which operates in Mexico but sells exclusively to the U.S. and Canada. 

Based on my research, until lettuce and leafy greens greenhouse production can be priced competitively with field-grown product, it will continue to be a U.S. phenomenon. At least until that time, Canadian and Mexican operators will leave greenhouse lettuce and leafy greens production to U.S. operators. 

Peter Tasgal is a Boston-area food agriculture consultant focused on controlled environment agriculture. 

Welcome To Our Farm Within A Farm

August 5, 2021

What is CEA?

Over the past year or so you may have heard us at Vertical Harvest referring to our “conversion” project – the construction of which has been the cause of some product delays and shortages. But now all of the hard work and waiting has come to fruition as we are now ready to welcome you into our new Micro Farm: A Farm Within a Farm. 

The idea emerged when we noticed an increase in demand from our local chefs and grocery stores to supply more microgreens and petite greens. This happened to align with an internal ambition we have been fostering to implement a fully Controlled Environment Agriculture (CEA) system within our greenhouse. The new compartment has 4,000 sq feet of rack systems growing micro and petite greens fully independent of the whims of nature. 

This farm is our next iteration for creating efficient and scalable growing systems. As we are seeing greater fluctuations in our local and national climates it has become increasingly important to us to delve into the capabilities of a growing system that is fully self-contained and not dependent on external changes in light and temperature. Instead, the greens will be nurtured in light and temperature conditions that are ideal to their growth cycles. This space has also increased our greenhouse production by 200%, meaning we can get our community more of the greens it loves both at home and when dining out. 

Though our Maine greenhouse will incorporate some different technology, it will have a tray system that is very similar to this new compartment; so we have also reserved a portion of this new space to trial products and improve growing methods to ensure that our Westbrook greenhouse will have all the resources and information needed to hit the ground running when it plants its first seeds. We are already growing in the new space, training our employees on the new system, and getting our greens to customers. Vertical Harvest has always integrated different techniques and changed to growing demands, this project has been challenging and rewarding and will go on to influence all of our future greenhouses. 

Nature Fresh Farms Featured in an Episode of YTV’s Kid Food Nation: The Show

July 20, 2021

Nature Fresh Farms joins YTV’s Kid Food Nation: The Show to educate children on greenhouse growing and fresh vegetable production.

Nature Fresh Farms will be featured in an episode during the second season of Kid Food Nation: The Show, giving the cast and the viewers at home a peek inside greenhouse and packaging facilities while exploring the many processes it takes to grow, package, and ship fresh food. Hosts Spencer and Tyra interview members of the Nature Fresh Farms team as they answer questions and share their knowledge about all things inside the greenhouse.

Kid Food Nation: The Show is in partnership with Kid Food Nation and President’s Choice Children’s Charity. The series follows Spencer, Tyra, and kid food nation heroes as they embark on culinary missions and answer questions like, "Should I eat crickets?" or "Are dandelions edible?" The jam-packed 8 episode run for Season 2 will be fun, informative, and inspirational to chefs both young and old. Like the show, the Kid Food Nation project aims to encourage Canadian kids to explore food through online recipes, activities, and videos. Founded by President’s Choice Children’s Charity, BGC Canada and Corus Entertainment, and now in its fifth year, the initiative celebrates a selection of junior chefs from every corner of Canada, featuring their family recipes in an annual contest and cookbook.

“Kid Food Nation is an amazing initiative that aligns completely with our vision of inspiring children and their families to learn about where their fresh fruits and vegetables come from while encouraging nutritional eating,” said Marketing Director, Stephanie Swatkow. “This was a great opportunity to share how we deliver fresh produce from seed to table in a fun interactive way that the program offers.”

Committed to educating consumers and helping to build healthier communities, Nature Fresh Farms believes in cultivating healthy, life-long eating habits through education and teaching important food skills so families can continually develop a healthier relationship with food.

The second season of Kid Food Nation: The Show will premiere on YTV this summer on July 28th at 6:30 pm EST. Each episode will also be uploaded on the Kid Food Nation YouTube channel at https://www.youtube.com/hashtag/kidfoodnation.

About Nature Fresh Farms

Continuously expanding, Nature Fresh Farms has become one of the largest independent, vertically integrated greenhouse vegetable farms in North America. As a year-round grower with farms in Leamington, ON, Delta, OH, and Mexico, Nature Fresh Farms prides itself on consistently delivering exceptional flavor and quality to key retailers throughout North America, while continuing to innovate and introduce more viable and sustainable growing and packaging solutions.

About Kid Food Nation

Kid Food Nation is a five-year project to excite the inner foodie in every Canadian kid. Created in partnership with President’s Choice Children’s Charity, BGC Canada, and Corus Entertainment, with the support of the Government of Canada, the Kid Food Nation online hub on YTV.com features cooking videos with kids, celebrity chefs, and local talent, tips for nutritious foods, as well as games and quizzes. In addition, topics related to the Kid Food Nation curriculum will also be available on the online hub.

The annual Kid Food Nation recipe contest encourages kids between the ages of seven and 13 from across the country to share their love of good food by submitting original, healthy recipes that highlight their culture or their Canadian pride. Each year, 26 young winners are chosen, representing every province and territory in Canada, to have their recipes and chef profiles published in the Kid Food Nation cookbook.

About Corus Entertainment

Corus Entertainment Inc. (TSX: CJR.B) is a leading media and content company that develops and delivers high-quality brands and content across platforms for audiences around the world. Engaging audiences since 1999, the company’s portfolio of multimedia offerings encompass 33 specialty television services, 39 radio stations, 15 conventional television stations, a suite of digital assets, animation software, technology, and media services. Corus is an established creator of globally distributed content through Nelvana animation studio, Corus Studios, and children’s book publishing house Kids Can Press. The company also owns an innovative full-service social digital agency so.da, and lifestyle entertainment company Kin Canada. Corus’ roster of premium brands includes Global Television, W Network, HGTV Canada, Food Network Canada, HISTORY®, Showcase, Adult Swim, NationalGeographic, Disney Channel Canada, YTV, Global News, Globalnews.ca, Q107, Country 105, and CFOX. Visit Corus at www.corusent.com.

SOURCE: Nature Fresh Farms | info@naturefresh.ca

T: 519 326 1111 | www.naturefresh.ca

Philips LEDs Contribute To A Higher Winter Production of Excellent Quality Cucumbers

July 21, 2021

LED systems clearly add value to year-round growth concepts for cucumbers. Jan Biemans of Tielemans Groentekwekerij from Boekel, the Netherlands and Eric van den Eynde from Kontich, Belgium have determined this after their first growth under a hybrid grow light solution. In 2020, they both upgraded their existing HPS installations with Philips LED toplighting systems from Signify. Despite the differences in their greenhouses, installations, and goals, their conclusions were unanimous: LED contributes to an efficient, high winter production of excellent quality.

Uniform distribution

Eric and Lander van den Eynde’s company close to Antwerp consists of 2 ha of unlit tomatoes and 2,1 ha of lit, high-wire cucumbers. “We have been growing under HPS lights for two years already, which complemented the natural light with 180 µmol/m²/s”, says Eric. “However, in winter the fruits did not reach the desired weight of 350 to 400 grams. Therefore, light had to be added and LED is the most efficient solution for that. Our question to Signify was how we could fulfill that in the smartest way.” Multiple light plans were calculated in consultation with their installer and the plant specialists from Signify. Because of the limited height of the greenhouse (gutter height 5 meters), the Philips GreenPower LED toplighting linear was chosen, because that gives the most uniform light distribution.  

Half of the HPS lamps were removed, and for each removed lamp 2,9 linear LED modules were installed. This brought the total light intensity to 223 µmol/m²/s, divided between 87µmol/m²/s HPS and 136 µmol/m²/s LED in red, blue and a bit of white working light. The total installation gives 24% more PAR-light, while the energy usage (at equal lighting hours) is about 7% less.

 “The light division is nice and equal, even when only the LED lights are on”, the grower continues. “The latter is the case every now and then in the Spring and Autumn especially, when the heat radiation from the HPS lights is not always wanted.”

More and heavier fruit

The new installation was ready in September of 2020. To take maximum advantage of the higher light level, a planting distance was chosen of 50 cm (2,5 plant/m2). Lighting was begun directly after planting on October 2nd. Van den Eynde: “The plants reacted well. Our goal is to have a growth speed of six new leaves per week, and we could keep up with that pace effortlessly. The higher density of the stalks did ask for an altered pruning policy, but that did not have any effect on our labor planning. The most important goal was a higher average fruit weight. That was realized right away. Furthermore, we cut more cucumbers and they were of a good color. Our customer is very satisfied, and therefore so are my son and I.”  

Winter production

Tielemans Groentekwekerij consists of 12 ha of greenhouses at two locations in Boekel. Cucumber is the most important crop. The company realizes two high-wire growths per year, from the beginning of January till the end of November, which formerly received 95 µmol/m²/s extra PAR-light from HPS lamps during the lighting season.

“In 2020 we received the request from our producers’ association to adapt 3,0 ha for winter production”, says growth manager Jan Biemans. “In order to realize sufficient production, weight, and quality in the darkest period, quite some additional light had to be installed. We looked at different options and made calculations. The choice was made for Signify’s Philips GreenPower LED toplighting compact, in combination with the GrowWise control system. With that we can dim the LED installation and tune the light level even better to the crop’s needs.”

Longer light in the evening

According to the light plan, the toplighting compact grow lights (providing 2.600 µmol in red and blue for optimal efficiency) were attached to the trellis in between the rows of HPS lights, raising the light level with 144 µmol/m²/s to 240 µmol/m²/s. The stalk density was chosen at 2,25 stalks per m2. Biemans: “We are content with the achieved winter production, and I am happy with this hybrid solution’s flexibility. The LED installation enables us to continue lighting longer in the evening without the additional heat. The plants did fine and got through the winter well.”

The growth manager thinks he can get even more out of it by decreasing the width of the row distance. “In the future I think we can benefit even more by adding far-red light”, he adds. “One variety showed some contracted leaves in darker periods, but the other variety did not do this at all. Overall, we are happy with the results.” Erik Stappers, plant specialist at Signify adds: “Full LED with far-red has proven itself by now. The role of far-red light in a hybrid installation with more LED than HPS is being investigated at the moment. Indeed, we do see differences between the varieties there.”

Let me know in case you have any questions.

UAE’s “Green Sheikh” Visits Green Bronx Machine, Gotham Greens And CS55

View fullsize

22-July-2021

by Green Bronx Machine

Green Bronx Machine founder Stephen Ritz welcomes the "Green Sheikh," His Royal Highness Sheikh Abdulaziz bin Ali Al Nuaimi to GBM's National Health, Wellness and Learning Center at CS 55 in the South Bronx.

1. Green Bronx Machine founder Stephen Ritz welcomes the "Green Sheikh," His Royal Highness Sheikh Abdulaziz bin Ali Al Nuaimi to GBM's National Health, Wellness and Learning Center at CS 55 in the South Bronx.

2. Green Bronx Machine

   The "Green Sheikh," His Royal Highness Sheikh Abdulaziz bin Ali Al Nuaimi tours Green Bronx Machine's National Health, Wellness and Learning Center at CS 55 in the South Bronx.

3. Gotham Green Co-Founder and CEO Viraj Puri (r) hosts the "Green Sheikh," His Royal Highness SheikhAbdulaziz bin Ali Al Nuaimi, along with Green Bronx Machine Founder Stephen Ritz and former GBM student and current Gotham Greens employee Corey Gamble at their Brooklyn-based greenhouse.

4. Senior officials from NYC Department of Education, the Office of the Brooklyn Borough President, NYS Senator Gustavo Rivera, and other staff and community from CS 55 greet His Royal Highness Sheikh Abdulaziz bin Ali Al Nuaimi at Green Bronx Machine's National Health, Wellness and Learning Center.

Newswise — BRONX, NY, July 22, 2021 – Green Bronx Machine founder Stephen Ritz and his students welcomed yesterday His Royal Highness Sheikh Abdulaziz bin Ali Al Nuaimi, to their classroom at the National Health and Wellness Learning Center (NHWLC) at CS 55 in the Bronx.

A member of the ruling family of Ajman of the United Arab Emirates and an environmental adviser to the Ajman Government, HRH is a globally acclaimed humanitarian and philanthropist whose work focuses on mindfulness, well-being, spirituality, sustainability, and nutrition, particularly in children and those living in marginalized communities. 

During the visit, HRH, known as the “Green Sheikh,” and Ritz, often called “America’s Favorite Teacher,” had a chance to catch up on all things ag education-related and see what GBM students are growing and learning during the Summer Rising school program that is currently in session.  In fact, GBM’s students hosted a luncheon for HRH, preparing and serving him a vegan meal made from vegetables grown by them right in their NHWLC classroom.  Prior to arriving at CS 55, Ritz accompanied HRH on a tour of Brooklyn-based Gotham Greens, a longtime GBM supporter, and partner. Gotham Greens, a pioneer in sustainable indoor farming with the largest network for hydroponic greenhouses in North America, brings a fresh perspective to how businesses can operate with a triple bottom line.

"The power of friendship between the UAE and USA started many years ago via multiple platforms.  Events like these help that friendship to continue to blossom and grow. Today, we all come together for sustainability, stewardship, and the best interests of all children. Today, we celebrate education and possibilities,” said His Royal Highness Sheikh Abdulaziz bin Ali Al Nuaimi.  “After many years of working together overseas, to be able to visit my dear friend, Stephen Ritz, and see the work of Green Bronx Machine personally, in his home country and home community is beyond exciting. To see this classroom and to visit Gotham Greens is to truly understand what is possible when people work together with innovation and dedication to change lives. This is what community looks like. This visit helps to share our work, our commitment, and our shared vision for the future and the planet for everyone to see - all around the world. I want to thank the NYC Department of Education, the residents of the Bronx, Stephen's family, colleagues, and the community at Community School 55 and the staff at Gotham Greens for their gracious hospitality. I look forward to continuing our sharing, our learning, and our working together." 

Longtime sustainability allies, the two green leaders met years ago in UAE via government officials with The Knowledge and Human Development Authority (KHDA) of Dubai.  KHDA is responsible for the growth and quality of private education in Dubai.  The two quickly became friends, sharing their passion for impact work, philanthropy, sustainability, education, and wellness initiatives. 

Stephen continues to work in UAE with ESOL Education.  Based on the model of Green Bronx Machine's National Health, Wellness, and Learning Center, ESOL launched the International Health, Wellness and Learning Center at Fairgreen International School located in the heart of Dubai’s The Sustainable City – the first net-positive city in the world.  Fairgreen International School is considered a Top Twenty School in the UAE and is known for innovation globally. 

“It has been an honor hosting His Royal Highness Sheikh Abdulaziz bin Ali Al Nuaimi, our dear friend, colleague, and fellow believer in the power of the plant to grow successful people, communities and economies,” said Ritz.  “We look forward to our continued work with HRH.  We are always ready to bring the Bronx to the world and make epic happen for millions more across the globe.” 

Over the coming months, HRH and Ritz will embark on a series of joint projects including a series of books for young people about bringing the farm to the desert, as well as building farms throughout the UAE to address food insecurity, agricultural innovation, workforce development, and overall health and wellness. 

“We built our first greenhouse in New York City in 2011 with the mission to reimagine how and where fresh food is grown,” said Viraj Puri, Co-Founder, and CEO of Gotham Greens. “His Highness, Green Bronx Machine, and Gotham Greens all share a passion for environmental advocacy and building a more sustainable future for our planet and for people around the world. We believe business can be a force for good, so we plant roots in the neighborhoods surrounding our greenhouses through long-standing partnerships with community groups and non-profit organizations like Green Bronx Machine, bringing nutritious, local food and STEM education to cities across America. We know that the impact from these programs extends beyond the borders of our neighborhoods and are proud to share learnings from our experience over the past decade.”

About Green Bronx Machine

Founded in 2011 by Global Teaching Prize finalist and life-long educator Stephen Ritz, Green Bronx Machine (GBM) is an impact-driven, for-purpose organization with 501(c)(3) status.  GBM builds healthy, equitable, and resilient communities through inspired education, local food systems, and 21st Century workforce development. Dedicated to cultivating minds and harvesting hope, its school-based model and propriety curriculum uses urban agriculture aligned to key school performance indicators, to grow healthy students and healthy schools.  Simultaneously, GBM also transforms once fragmented and marginalized communities into neighborhoods that are inclusive and thriving.  For more information, visit www.greenbronxmachine.org.

Follow us on social media:

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The Farm is Merging With Food Retail Spaces

By: Sylvain Charlebois

July 13, 2021

Canadians have started to notice that grocers have begun to sell plants in miniature greenhouses.

We’ve seen gardens on rooftops, vertical farms close to stores and even some selling gardening equipment to gardeners who are shopping for food. The farm is essentially merging with the food retail spaces we roam as consumers. It’s quite interesting.

We’re slowly witnessing the rise of the ‘grow-cer.’

For years, customers accepted the myth that food just magically shows up at the grocery store. But COVID-19 got many of us to think differently about supply chains – how food is grown, produced, transported, packaged and retailed.

With the addition of new farmgate features for city dwellers, grocery stores are slowly becoming the gateway to an entire world most of us rarely see: farming.

Sobeys has provided one recent example of what’s going on. The second-largest grocer in Canada recently signed a partnership agreement with German-based Infarm to get greenhouses into many outlets across the country. Infarm units were installed last year in British Columbia and can now be found in many other locations across the country.

Infarm units enable Sobeys to offer fresh herbs and produce grown hydroponically, which requires 95 percent less water, 90 percent less transportation, and 75 percent less fertilizer than industrial agriculture. And no pesticides are used.

Available produce grown inside the store includes leafy greens, lettuce, kale, and herbs such as basil, cilantro, mint and parsley. Expansion plans include chili peppers, mushrooms, and tomatoes. The growing cycle for most of these averages five weeks.

While Sobeys doesn’t have to worry about infrastructure and extra capital to change a store’s allure, it can get rid of these miniature vertical farms if proven unpopular or unnecessary. That works well for Sobeys and the consumer.

But it’s not just Sobeys. Other grocers now have decent-sized vertical farms inside the store or close to them.

The gardening rate in Canada has gone up by more than 20 per cent since the start of the pandemic last year. For consumers, growing their own food was about pride and taking control of their supply chain in some way.

For many others, though, gardening remains a luxury due to the lack of space or time. Since a trip to the grocery store is inevitable for most of us, grocers are bringing the farm to the store so consumers can have both the farming and the retail experience at once.

Before COVID, farmers desperately tried to get closer to city dwellers so their work could be appreciated. Campaigns over the years brought mixed results. Farming is still largely misunderstood.

Debates on genetically modified organisms (GMOs) and the use of chemicals have also divided urban and rural communities. City dwellers have always respected farmers and the hard work they do. But many consumers who are/were looking for natural and organically-produced goods have grown leery of farming in general.

This has attracted the attention of environmental groups opposed to many farming practices.

Grocers are starting to realize that bridging two worlds under one roof can help elevate their roles as ambassadors to an entire supply chain. Farmers can’t be replaced, of course, and they can’t be in stores.

For years, we saw pictures of farmers on packages and posters. It was nice, but it wasn’t real. The hard work, and everything else that comes with farming, can only be properly conveyed when visiting a farm or working on one for a while.

The pictures likely won’t disappear from grocery stores but they don’t really tell the whole story.

The new grow-cer brings the imagery of farming in retail to a new level. Grabbing a living plant or produce off a living plant is certainly real and increasingly valuable for Canadians longing for local and freshness. It just can’t get more local than growing it in the grocery store.

COVID-19 eliminated many rules for grocers. Every business played a part. Grocers sold food, processors manufactured it, and restaurants provided ready-to-eat solutions. Lines between sectors were already becoming blurred before COVID, given the crossing of concepts and elimination of lines between sectors.

For example, some of us have heard of the ‘grocerant’ concept, which has embedded food service into grocery stores. Consumers can relax, enjoy food before, during or after their grocery shopping.

But COVID blew up the blurred lines.

Grocers are becoming brokers, connecting various functions of the supply chain. Farming connects with retail by way of new initiatives that we’re now seeing everywhere.

For example, restaurants are selling meal kits through grocers’ apps. Few saw that coming.

Food brokering for grocers is no doubt the next frontier of growth.

Whether it will last is unknown. But grocers are embracing the fact they have the privilege of interacting with consumers every day. That privilege, more than ever, comes with a responsibility to show consumers the true value of food by being knowledge brokers.

If that means growing more food in stores, so be it.

Dr. Sylvain Charlebois is senior director of the agri-food analytics lab and a professor in food distribution and policy at Dalhousie University.

AppHarvest: Firing On All Cylinders

Written by Jamie Louko

July 12, 2021

AppHarvest, Inc. (APPH)

Summary

• AppHarvest is trying to reimagine how consumers see produce.

• With sustainability as one of their key focuses, AppHarvest separates itself from the pack of traditional farmers, and its size, scalability, and offering selection separate itself from other agtech players.

• In this article, I am going to examine some of the most recent news AppHarvest has shared with investors, as well as looking back at AppHarvest compared with other agtech players.

AnnaStills/iStock via Getty Images

Investment Thesis

The agtech and sustainable farming industry has proved to be more efficient and sustainable compared to traditional farming. However, the difference and competitive edge lie between each sustainable farming business. These agtech businesses achieve similar sustainability and efficiency goals, so the competitive advantage comes in other forms. AppHarvest's (APPH) competitive advantage comes in the form of the size and scale potential of their farms, as well as their broad expansion of product offerings. Because of this, AppHarvest is one of the stronger players in the agtech space, and investors who want to play in this industry should be considering AppHarvest before other competitors.

Where We Last Left Off, and What's New

In my last article about AppHarvest, a large-scale indoor farming business operating in central Appalachia, I focused on the competitive advantages over traditional farming operations. Since then, other indoor farming businesses similar to AppHarvest have come out of the woodwork and announced plans to trade as public companies. Some of these businesses include AeroFarms (SV, will become ARFM), a sustainable farmer focused on vertical farming, Local Bounti (LIII, will become LOCL), an indoor farming business located in the pacific northwest, and Infarm, a German-based distributor who has become the world-leader in indoor farming. Infarm has rumored to becoming public via SPAC with Kernel Group Holdings Inc. (KRNL), but nothing definitive has been reached.

As these businesses show their superiority, they all claim similar sustainability and efficiency metrics. Most businesses claim that their use of water is extremely efficient, as is their optimization for crop growth, and their LEDs allow for optimal sunlight. Simply, all of these businesses have very similar technology that makes them superior to traditional farming, but this does not mean success for any individual business within the agtech industry. They all show that the agtech industry is superior, but rather they should focus on what makes their business superior to other agtech players.

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Source: Investor Presentation

In my opinion, traditional farming is a dying industry, and it is sensible that sustainable farming and greenhouses will be the future of farming. Therefore, it is sensible that the agtech business should be demonstrating its competitive advantages over other agtech competitors, rather than traditional farming.

AppHarvest, even in this sense, does stand out from the competition. They are slowly becoming a bigger player in this space, and one that is starting to run ahead of the pack. While other agtech businesses are busy constructing their first farm, AppHarvest has jumped ahead with the production of its next 4 farms. While its competitors are starting small with only 1-2-acre farms, AppHarvest has positioned itself well with 15-60-acre farms. AppHarvest's competitors are currently focusing on one product category, yet AppHarvest is rapidly expanding its product offerings.

In an industry that is growing rapidly, AppHarvest is executing everywhere it needs to, and it is allowing for AppHarvest to set itself apart from the competition.

Competitive Advantages Over Agtech Businesses

AppHarvest has three quality characteristics that show it is stronger than most of its agtech competitors. Due to the size and scalability of its farms, expansion in offerings, and consistent execution, AppHarvest is proving to investors that they are one of the stronger players in this industry.

Size and Scale of Farms

One of AppHarvest's strongest competitive advantages within the agtech space is the size of its facilities. These facilities are absolutely massive, with their first facility 60 acres in size. This allows for mass production of sustainable-grown produce at a scale that no other agtech business has. These facilities can often take longer to construct, but once constructed, there is a long runway for growth and full-scale operations for it. It would take substantially less time to fully scale a farm this size compared to building and scaling 60 1-acre greenhouses.

The second option is what Local Bounti is doing, for their facilities are only 1-2-acre facilities. They plan on constructing 9 facilities by 2025, 8 of which will be roughly 5 acres, which would only lead to a maximum growing capacity of 42 acres. This goal of 42 acres would be less than AppHarvest's currently operating growing capacity.

Clearly, the size of AppHarvest's farms is a massive advantage for them. The scalability of these farms gives them an even greater lead. AppHarvest expects production of their first facility in Morehead, Kentucky to be fully scaled by the end of 2021, whereas Local Bounti's 42 acres would not be fully operational and scaled until at least 2025. AppHarvest would then have 4 years of fully-scaled operations to build a brand, strengthen the balance sheet, and fuel more growth for AppHarvest.

The scalability shows itself through guidance estimates for FY 2021 as well. By the year's end, at full-production, AppHarvest expects to make $21 million in revenue, whereas Local Bounti only expects to make $13 million by the end of 2022. The size and scalability of AppHarvest's farms are simply unmatched by its competitors, and as they build more farms (I will dive into that shortly), these size and scale advantages will only become more prevalent.

Offering Expansion

Compared to its competitors, AppHarvest is planning to expand its product offerings at a faster rate. One of the keys to success for these agtech businesses is having a successful brand, and one way to grow a brand is to put it in the eyes of more customers. One way to do this is by expanding the products offered. That way, both salad enthusiasts can eat the leafy greens and tomatoes produced, while berry lovers (like myself) can also recognize the brand. If a business were to only focus on leafy greens, then they would not achieve brand recognition from people like me as much.

AppHarvest's offering expansion is happening fast, and it will only be a matter of time before AppHarvest can offer products in various categories, rather than simply tomatoes. Their primary facility in Morehead, KY, solely produces tomatoes, but they have 4 facilities under operation that will be producing a wide variety of offerings. Here are the 4 facilities being constructed, along with what they will be producing:

Facility LocationProduction CategoryAcreageExpected Construction Completion DateBerea KYLeafy Greens15Q3 2022Richmond KYVine Crops60Q4 2022Somerset KYBerries30Q4 2022Morehead KYLeafy Greens15Q4 2022

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Source: Press Release

Considering that AppHarvest currently focuses solely on tomatoes, expansion into 3 other product categories is a wonderful step in growing its brand recognition. This is something that few of its competitors are doing. Local Bounti does not have any structural plans on expansion out of leafy greens, and AeroFarms has plans to expand into berries for its primary leafy greens production.

As previously mentioned, I believe that offering expansion is important to the brand growth for these agtech businesses. As they expand their offerings, they will be able to get their products and their name in front of more consumers. AppHarvest has started showing signs of doing this well, where its competitors have failed to do the same.

Signs of Execution

One of the risks I mentioned in my last article was about the ability of management to meet or exceed guidance they put out for themselves. This included construction guidance. In their investor presentation, they expected to have 4 facilities up and running by the end of 2022, including their main facility in Morehead. Recently, they announced plans to construct two additional facilities, meaning that they are now expecting to have 5 facilities up and running by the end of 2022.

This seems small on the surface, but this is the exact type of execution proof that I look for in small businesses like AppHarvest. The fact that management was able to start construction on more farms than expected and thus increase their timeline shows that they are executing and exceeding the guidance they set out for themselves.

For investors, this should demonstrate that AppHarvest management can be trusted, for their guidance was beaten. Management was able to beat their own guidance, and that should show investors that AppHarvest is not just a pipe dream, but it actually has something tangible to run with and build.

A Look at My Risks: What Risks are Still Present, and What Risks Have Grown

In my last article, I noted many risks that are potential with the business:

• AppHarvest is unable to grow its factories at or faster than projections.

• Their Mastronardi partnership goes awry.

• They are unable to educate the broader public on what makes them special.

• AppHarvest is unable to lower prices.

• Management leaves the company.

For the most part, all of these risks are still prevalent today, if not even more important. Although they have begun to prove they can beat their own guidance, they will still need to continue to prove this, both in quarterly and yearly financial estimates, but also through construction estimates.

Their Mastronardi partnership is still fragile, and if anything were to happen with that partnership AppHarvest would have no way of distributing its product to local grocers, which could potentially decimate this business.

Although the offering expansion will make it easier to gain brand recognition and thus educate the broader public about their business, this will likely always remain a risk as long as traditional farming produce dominates grocery store shelves. Gaining brand recognition will also go a long way in being able to lower prices. So, while their offering expansion has the potential to increase brand recognition for AppHarvest, risks still remain and likely will remain for a long time.

Even though management seems very happy at AppHarvest, and loss of a major figure, Jonathan Webb specifically, would greatly damage their business. Management is the face of the business until they are able to bring products to shelves at a very large scale, so management impressing investors is largely how they will gain capital to subsidize the financing of their farm construction. If the face of AppHarvest were to leave, it could hurt their ability to receive financing and thus their ability to develop their facilities.

After seeing many agtech businesses come to the market via SPAC, there has been more concern about competition in this space. Because of this, I would likely add competition as a risk to AppHarvest. While many of its competitors are pre-revenue and are not far along on facility construction, they do have a competitor that is much larger than AppHarvest. Infarm is a German-based sustainable food producer that sells its product internationally, with the U.S. being its most recent expansion area. They have expanded broadly in Europe, and they seem to have their eyes set on the United States. This could pose a tremendous risk for AppHarvest, for there is no agtech player that comes close to the size of Infarm. They have $19 million in sales across the world compared to AppHarvest's $2 million last quarter.

AppHarvest's competition is fierce, and there is no doubt that the competitive threats will slow as time goes on. Therefore, I am confident to say that AppHarvest will have to fight against fierce competition in order to gain market share in the U.S., but their competitive advantages listed above will be able to help them do so.

Recent Stock Decline: Buying Opportunity?

AppHarvest's stock price has plunged in recent months, falling roughly 58% since February 2021.

Data by YCharts

This has put AppHarvest's market cap roughly around $1.5 billion and dropped their valuation down from extremely high multiples to still high, but comparatively lower multiples. Currently, it is trading over 600x sales, but it is trading at 73x forward sales if investors are looking at FY 2021 revenue estimates.

A business that just got its first revenue in Q1 of 2020 is obviously going to have extremely high valuation multiples, but revenue is growing extremely fast, and it is expected to continue to do so. Considering that the stock price has had a tremendous fall from grace, and revenue is expected to grow rapidly, today could potentially be a wonderful time to invest in this business at a very low price.

Conclusion

As I have said before, an investment in AppHarvest is not for the faint of heart. It is valued at very high multiples, and the number of risks for this business is high. AppHarvest will need to continuously execute at a strong level, for there is little room for slip-ups. With plenty of competition in the agtech market, AppHarvest will need to hold onto its competitive advantages tight if it wants to be a market leader in this industry.

Despite all of this, AppHarvest is one of the better investments for investors who want to get in on the agtech industry. They are one of the few companies with strong competitive advantages, and there are very few companies that could construct what AppHarvest is constructing. Their valuation is high now, but as they grow revenue it is likely that it will rapidly decrease, and it will be much more reasonable in the future. The risks associated with this business are plenty, but management has begun to prove they can efficiently execute.

For risk-tolerant and volatility-tolerant investors who wish to capitalize on the sustainable produce transformation, AppHarvest is one of the best bets to make. Their competitive advantages are strong, and they are one of the only businesses that have proved they have the ability to accomplish what they say they can. Because of this, I am recommending that risk-tolerant and volatility-tolerant investors who wish to invest in agtech should consider AppHarvest before any other competitors.

Lead photo: Source: Investor Presentation

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This article was written by

Jamie Louko

I am a college student who has found a deep thirst for learning and investing. Being very young, I have leaned toward very long-term investments and growth stocks, primarily in tech. I do, however, love consumer goods companies as well. Currently, I am studying International Business and Economics.

Long Only, Growth, Long-Term Horizon, Tech

Contributor Since 2021

Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

VB Ready To Double Capacity For Little Leaf Farms Again

July 5, 2021

Devens, Massachusetts-based Little Leaf Farms' mission is to provide fresh, locally grown lettuce grown sustainably all year round to their New England consumers. To be able to achieve this goal, it is extremely important to grow and supply products in a sustainable way all year round.

This is why Little Leaf Farms asked VB again to build the most modern and innovative greenhouse to date to grow leafy greens. A system that provides the smallest possible chance of disease, an optimal growing climate, and no need for human hands to be involved in the cultivation process. After three consecutive phases for LLF realizing an ultramodern greenhouse is a challenge that VB knows how to handle. 

Inside the Little Leaf greenhouse

The climate on the US East Coast is a challenge: winters during which -25 C is no exception, and summers during which the mercury rises to +38 C. A considerable amount of energy is required to be able to cope with these extremes. The solution had to be more sustainable than transporting the lettuce by truck from the West Coast to the New England area.

With an advanced automatic cultivation system that systematically moves through the greenhouse, the sustainability challenge has been overcome. In collaboration with a team of specialists, as well as the customer, VB was able to take an in-depth look during the design process at what was needed to create an optimal growing climate inside the greenhouse.

The Little Leaf Farms greenhouse in Devens

Active cooling system
VB has integrated a unique active cooling system, with which the inside of the greenhouse can not only be kept cool during the winter through the use of outside air, but also stays cool during the hot summers. LED lighting helps compensate for the shortage of natural light during the winter. With the use of sun protection screens, excess sunlight is blocked during the summer.

The result? The climate conditions can be optimized for the cultivation process, the growth process is accelerated, there is more control over the nutrition the plants receive, available cultivation space is used in the most efficient manner, and virtually nobody needs to enter the greenhouse.

Edward Verbakel (VB) & Paul Sellew (Little Leaf Farms)

Doubling and doubling again
The first greenhouse in Devens MA was completed in 2016 and shortly after two additional phases were built by VB for Little Leaf Farms to reach 10 acres of modern growing space.

In the course of 2021 LLF and VB were able to agree again on the construction of the new Little Leaf Farms greenhouse facility in McAdoo Pennsylvania. With this expansion Little Leaf is doubling its capacity to 20 acres. Construction will start this summer and completion is expected for early Spring 2022.

 McAdoo facility, Pennsylvania

For more information:
Edward Verbakel
VB Group
info@vb.nl
www.vb.nl

No Soil. No Growing Seasons. Just Add Water And Technology

A New Breed of Hydroponic Farm, Huge And High-tech, is Popping Up in Indoor Spaces All Over America, Drawing Celebrity Investors And Critics.

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By Kim Severson

July 6, 2021

MOREHEAD, Ky. — In this pretty town on the edge of coal country, a high-tech greenhouse so large it could cover 50 football fields glows with the pinks and yellows of 30,600 LED and high-pressure sodium lights.

Inside, without a teaspoon of soil, nearly 3 million pounds of beefsteak tomatoes grow on 45-feet-high vines whose roots are bathed in nutrient-enhanced rainwater. Other vines hold thousands of small, juicy snacking tomatoes with enough tang to impress Martha Stewart, who is on the board of AppHarvest, a start-up that harvested its first crop here in January and plans to open 11 more indoor farms in Appalachia by 2025.

In a much more industrial setting near the Hackensack River in Kearny, N.J., trays filled with sweet baby butterhead lettuce and sorrel that tastes of lemon and green apple are stacked high in a windowless warehouse — what is known as a vertical farm. Bowery, the largest vertical-farming company in the United States, manipulates light, humidity, temperature, and other conditions to grow produce, bankrolled by investors like Justin Timberlake, Natalie Portman, and the chefs José Andrés and Tom Colicchio.

“Once I tasted the arugula, I was sold,” said Mr. Colicchio, who for years rolled his eyes at people who claimed to grow delicious hydroponic produce. “It was so spicy and so vibrant, it just blew me away.”

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The tomatoes at AppHarvest were delicious enough to attract an investment from Martha Stewart.Credit...Luke Sharrett for The New York Times

The two operations are part of a new generation of hydroponic farms that create precise growing conditions using technological advances like machine-learning algorithms, data analytics and proprietary software systems to coax customized flavors and textures from fruits and vegetables. And they can do it almost anywhere.

These farms arrive at a pivotal moment, as swaths of the country wither in the heat and drought of climate change, abetted in part by certain forms of agriculture. The demand for locally grown food has never been stronger, and the pandemic has shown many people that the food supply chain isn’t as resilient as they thought.

But not everyone is on board. These huge farms grow produce in nutrient-rich water, not the healthy soil that many people believe is at the heart of both deliciousness and nutrition. They can consume vast amounts of electricity. Their most ardent opponents say the claims being made for hydroponics are misleading and even dangerous.

“At the moment, I would say the bad guys are winning,” said Dave Chapman, a Vermont farmer and the executive director of the Real Organic Project. “Hydroponic production is not growing because it produces healthier food. It’s growing because of the money. Anyone who frames this as food for the people or the environment is just lying.”

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The sprawling Kentucky farm is one of a dozen that AppHarvest hopes to open across Appalachia.Credit...Luke Sharrett for The New York Times

The technical term for hydroponic farming is controlled environmental agriculture, but people in the business refer to it as indoor farming. What used to be simply called farms are now referred to as land-based farms or open-field agriculture.

“We’ve perfected mother nature indoors through that perfect combination of science and technology married with farming,” said Daniel Malechuk, the chief executive of Kalera, a company that sells whole lettuces, with the roots intact, in plastic clamshells for about the same price as other prewashed lettuce.

In March, the company opened a 77,000-square-foot facility south of Atlanta that can produce more than 10 million heads of lettuce a year. Similar indoor farms are coming to Houston, Denver, Seattle, Honolulu, and St. Paul, Minn.

The beauty of the process, Mr. Malechuk, and other executives say, is that it isn’t limited by seasons. The cost and growing period for a crop can be predicted precisely and farms can be built wherever people need fresh produce.

“We can grow in the Antarctic,” he said. “We can be on an island. We can be on the moon or in the space station.”

That’s easy to picture: The farms are staffed by a new breed of young farmers who wear lab coats instead of overalls and prefer computers to tractors.

Today, the more than 2,300 farms growing hydroponic crops in the United States make up only a sliver of the country’s $5.2 billion fruit and vegetable market. But investors enamored of smart agriculture are betting heavily on them.

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Lettuces at a Kalera vertical farm destined for nutrient-filled water begin in small plugs of growing medium.

Credit...Courtesy of Kalera

In 2020, $929 million poured into U.S. indoor-farming ventures, more than double the investments in 2019, according to PitchBook data. Grocery chains and California’s biggest berry growers are partnering with vertical farms, too.

“There is no question we are reinventing farming, but what we are doing is reinventing the fresh-food supply chain,” said Irving Fain, the founder, and chief executive of Bowery, which is based in Manhattan and has the indoor farm in New Jersey and one in Maryland, another under construction in Pennsylvania, and two research farms in New Jersey.

Mr. Fain said his farms are 100 times as productive as traditional ones and use 95 percent less water. Other companies claim they can grow as much food on a single acre as a traditional farm can grow on 390.

Vertical farms can be built next to urban centers, so lettuce, for example, doesn’t have to sit inside a truck for days as it makes its way from California to the East Coast, losing both quality and nutritional value. Vegetables can be bred for flavor rather than storage and yield.

The new systems are designed to produce a sanitary crop, grown without pesticides in hygienic buildings monitored by computers, so there is little risk of contamination from bacteria like E. coli, which forced large recalls of romaine lettuce in 2019 and 2020.

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Bowery, the largest vertical-farm company in the United States, is growing hydroponic vegetables that have attracted the attention of chefs. Credit...Brian Fraser for The New York Times

Still, many farmers and scientists remain unpersuaded. Mr. Chapman, of the Real Organic Project, served on a U.S. Department of Agriculture hydroponics task force five years ago, and is leading an effort to get the agency to stop allowing hydroponic farmers to certify their produce as organic. The very definition of organic farming, he and others say, rests on building healthy soil. In May, the Center for Food Safety, an environmental advocacy group, led an appeal of a federal court ruling that upheld the agency’s policy.

Although the nutritional profile of hydroponic produce continues to improve, no one yet knows what kind of long-term health impact fruits and vegetables grown without soil will have. No matter how many nutrients indoor farmers put into the water, critics insist that indoor farms can never match the taste and nutritional value, or provide the environmental advantages, that come from the marriage of sun, a healthy soil microbiome, and plant biology found on well-run organic farms.

“What will the health outcomes be in two generations?” Mr. Chapman asked. “It’s a huge live experiment, and we are the rats.”

The divide between soil loyalists and ag-tech futurists is playing out on a much more intimate scale between two influential brothers: Dan and David Barber, who founded and own the organic farm Blue Hill and its restaurants in Greenwich Village and at Stone Barns in Pocantico Hills, N.Y.

In 2018, David Barber created an investment fund to support new food tech companies, including Bowery. But Dan Barber, a chef whose 2014 book “The Third Plate: Field Notes on the Future of Food” devotes an entire section to soil, believes that truly delicious food can come only from the earth.

“I am not buying any of it,” Dan Barber said of the hydroponic fever.

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The chef Dan Barber, a soil loyalist, is skeptical of the claims made for hydroponic farms.

Credit...James Estrin/The New York Times

Trying to enhance water with nutrients to mimic what soil does is virtually impossible, he said, in part because no one really knows how the soil microbiome works.

“We know more about the stars and the sky than we do about soil,” he said. “We don’t know a lot about nutrition, actually.”

There is a cultural cost, too. For centuries, cuisines have been developed based on what the land and the plants demanded, he said. Regional Mexican diets built on corn and beans came about because farmers realized that beans fixed nitrogen in soil, and corn used it to grow strong.

“The tech-farming revolution is turning this equation on its head,” Mr. Barber said. It aids efficiency in the name of feeding more people but divorces food from nature.

His brother, David, had long been skeptical of hydroponics, too. “Most of my career was about good soil leads to good agriculture and good systems and ultimately good flavor,” David Barber said.

But the environmental advantages of next-generation hydroponic food production can’t be ignored, he said. Nor can the improvements in taste over earlier hydroponic produce. “They are combining outdoor and indoor thinking, and science and history, to create something special,” he said. “There are not going to be many winners in this space, but it is going to be a part of our food system.”

At Bowery, “there is no question we are reinventing farming, but what we are doing is reinventing the fresh-food supply chain,” said Irving Fain, its founder, and chief executive. Credit...Brian Fraser for The New York Times

Indoor farm companies view their competition as the large, industrial growers that produce fruits and vegetables bred to withstand processing and shipping — not smaller farmers using more natural growing techniques. The battle, they say, is against monoculture, not farmers who maintain healthy soil and feed their communities. Hydroponic farms can help develop new and more diverse plants, and reduce overall pesticide use.

“The only thing we are trying to do is get as good as farmers were 100 years ago,” said Mr. Malechuk, the hydroponic lettuce grower.

Indoor farming is a bet on the nation's agriculture, said Jonathan Webb, the Kentucky-born founder and chief executive of AppHarvest.

“The American farmer is already obsolete,” he said, pointing out that the United States imports four billion pounds of tomatoes from Mexico every year. “Our hope is we can get farmers back on U.S. shelves.”

Even Mr. Colicchio, who led a campaign against genetically modified food and has long been a champion of small farmers, said the two styles of farming can coexist. “We’re going to need a lot of tools in the toolbox,” he said.

Ouita Michel, a chef in Kentucky, likes AppHarvest because the company is creating jobs and growing tomatoes she is happy to use in her restaurants.

But technology, she said, will never trump the magic of soil. “Nothing will ever replace my summer Kentucky tomatoes.”

Lead photo: AppHarvest, the nation’s largest hydroponic greenhouse, opened in January in Morehead, Ky. — one in a new breed of huge indoor produce farms that use technology to fine-tune flavor, texture, and other attributes. Credit...Luke Sharrett for The New York Times

Q&A, Expert Source: Viraj Puri, Co-Founder And CEO of Gotham Greens, An Indoor Farming Company With Hydroponic Greenhouses Located In Cities Across America

Exclusives From Urban Ag News

June 2, 2021

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A Q&A with Viraj Puri, Co-Founder, and CEO of Gotham Greens

For those that do not know Gotham Greens, please tell us a little bit about the company and when the company was formed?

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Viraj Puri, Co-Founder, and CEO of Gotham Greens

Viraj: We are on a mission to transform how and where fresh food is grown. Gotham Greens is a pioneer in indoor greenhouse agriculture and a leading producer of fresh and sustainably- grown salad greens, herbs, dressings, dips, and cooking sauces. By using hydroponic systems in 100% renewable energy-powered greenhouses, our farms use 95% less water and 97% less land than conventional farming. Since our launch in 2011, Gotham Greens has grown from a single urban rooftop greenhouse in Brooklyn, N.Y., to a multi-state greenhouse operator and one of the largest hydroponic leafy green producers in North America.

How many farms do you operate?  And where are those farms located? What do you grow?

Viraj: Gotham Greens currently operates 500,000 square feet of greenhouses across five U.S. states (and growing), including locations in New York City, Chicago, Providence, R.I., Baltimore, and Denver. Through our national network of high-tech, hydroponic greenhouses, Gotham Greens produces fresh, long-lasting, and tasty leafy greens and herbs along with a line of plant-based salad dressings, dips, and sauces, available in more than 2,000 retailers in 40 states, restaurants in select cities, and foodservice customers all year-round.

Why did you choose a greenhouse over a vertical farm?

Viraj: Gotham Greens is focused on building a more sustainable food system and we are drawn to adaptive reuse projects in cities across America. Gotham Greens has a track record of established, robust and proven operations and technology compared to vertical farming, which is still a relatively young industry. Our hydroponic greenhouse technology uses less energy than vertical farming. While vertical farming is an innovative extension of modern greenhouse farming with overlapping principles that has garnered quite a bit of interest, there are still questions surrounding the technology and financial viability of this farming method. In theory, fully indoor environments that rely on artificial light and HVAC systems can offer very high yields and levels of climate control, pest management, and food safety, but these benefits can be outweighed by significantly higher capital and operating costs than our hydroponic greenhouses. 

What are your predictions for the future of controlled environment agriculture?

Viraj: For many parts of the country, it’s difficult to get fresh, locally-grown produce all year round. Since more than 95% of lettuce grown in the United States comes from California and Arizona, by the time it reaches other markets, it loses its quality, taste, and nutritional value – and has a much shorter shelf life. Gotham Greens, and controlled environment agriculture at large, provide an opportunity to transform our food system for the better by growing more fresh foods closer to where consumers live — all while using fewer natural resources. 

Consumers, retailers and foodservice operators are increasingly recognizing the reliability, consistency and high quality of greenhouse-grown produce that’s grown in close proximity to large portions of the population and we only expect this model to continue to grow as consumers pay greater attention to the food they eat and its impact on the planet. While indoor farming may not represent the future of all fresh produce production, for certain types of crops, it will become much more prevalent in the coming years.

You can hear Viraj Puri speak at the virtual Indoor AgTech Innovation Summit June 24-25, 2021. 

Register Now!

Learn more: @gothamgreens or gothamgreens.com

Pure Harvest Smart Farms Adopts Honeywell’s Sustainable Technology

Al Ain farm uses the Solstice zd for climate-controlled system – an ultra-low-global-warming-potential solution – for growth of its produce

• By ITP.net Staff Writer

• 28 Jun 2021

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The Al Ain-based Pure Harvest Smart Farms is using Honeywell’s Solstice zd (R-1233zd) ultra-low-global-warming-potential (LGWP) refrigerant to cool its new indoor farm, while reducing energy consumption and CO2 emissions.

The UAE-based company has implemented several high-tech, controlled-environment hybrid growing systems across the Middle East to meet the regional need for fresh fruits and vegetables. However, the Al Ain farm will be the first sustainable initiative to use Honeywell’s solution, which effectively increases energy efficiency when used in chillers, and will assist the farm in reducing its carbon footprint. 

Based on hydrofluoro-olefin technology, Solstice zd is non-flammable with a GWP of 1, and offers better capacity and similar efficiency to HCFC R-123 in low-pressure centrifugal chillers to cool large buildings and infrastructure. 

“We’ve developed a successful controlled agriculture business that converts natural sunlight to grow fresh produce in abundance, helping us to address regional challenges such as food insecurity and water scarcity, and offer consumers fresher and more sustainable choices,” said Sky Kurtz, CEO and co-founder of Pure Harvest Smart Farms.

“Solstice zd is integral to the continued growth of our sustainable operations and is a practical and economical solution that enables us to meet our long-term goals, and comply with existing and proposed regulations for lower-GWP solutions.”

Amir Naqvi, regional business leader, Middle East, Turkey, and Africa for Honeywell Fluorine Products, added: “Solstice zd is a long-term, environmentally preferable solution for farming in the region, which typically has high energy demands as a result of the hot climate.

“Converting to Solstice zd will not only help Pure Harvest Smart Farms with sustainable practices, but will also help to accelerate the industry’s conversion to alternatives that reduce greenhouse gas emissions.”

Founded in Abu Dhabi, Pure Harvest Smart Farms is a technology-enabled agribusiness focused on year-round, sustainable production of premium quality fresh fruits and vegetables. As makers of the Middle East’s first commercial-scale, semi-automated high-tech hybrid greenhouse food production system, Pure Harvest leverages innovative growing technologies and horticultural best practices to enable local-for-local production of affordable, sustainably-grown, cleaner than organic and protected by nature, fresh produce anywhere.

Pioneering controlled environment agriculture (CEA) in the Middle East, Pure Harvest’s mission is to tackle some of the region’s biggest problems using technology to provide agriculture solutions that address food security, water conservation, economic diversification, and sustainability needs.

The company’s products are found in some of the most respected and far-reaching retailers in the Middle East, such as Spinneys, Waitrose, and Carrefour, as well as numerous reputable hotels and restaurants in the UAE. The company currently grows 26 commercial varieties of tomatoes, including six that have never before been seen, and six varieties of strawberries.

By early next year, upon completion of the company’s Kuwaiti facility and its expansion into KSA, the product portfolio will broaden even further, to include raspberries, blackberries, additional vine crops and lettuces.

Solstice zd has been adopted by Trane, a leading air-conditioner manufacturer, in its new Series E CenTraVac large capacity centrifugal chillers in the Middle East as well as in Europe’s Channel Tunnel, which has demonstrated annual energy savings of 33% (4.8 GWh).

Honeywell refrigerants are sold worldwide under the Solstice and Genetron brand names for a range of applications, including refrigeration, building and automobile air-conditioning. The company and its suppliers have completed a  billion-dollar investment program in research and development, and new capacity based on Honeywell’s hydrofluoroolefin (HFO) technology. Worldwide adoption of Solstice products has resulted in the reduction of more than 200 million metric tons of CO2 to date, equal to eliminating the emissions from more than 42 million cars from the road for a year.

Honeywell recently committed to achieve carbon neutrality in its operations and facilities by 2035. This commitment builds on the company’s track record of sharply reducing the greenhouse gas intensity of its operations and facilities as well as its decades-long history of innovation to help its customers meet their environmental and social goals.

Food TechSustainabilityFarmingPure Harvest Smart Farms (Pureharvest.Ae/)Honeywell

Modern Farming: Coronavirus Outbreak Spurs High-Tech Greenhouse Boom in China

June 4, 2021

Emily Chow

SHANGHAI, June 4 (Reuters) - At Chongming Island just outside Shanghai, China’s most populous city, workers collect and pack tomatoes and cucumbers at a glass greenhouse operated by Dutch company FoodVentures, which harvested their first batch of produce at the site in May.

The facility is one of the dozens sprouting up on the outskirts of China's megacities that utilize high-end technology to manage irrigation, temperature, and lighting systems to grow vegetables within easy reach of a large and affluent consumer base.

"There is a trend towards more sustainable and professional supply," said FoodVentures director Dirk Aleven.

"We've seen a huge acceleration since (the) coronavirus, it is even more important now that fresh produce is produced at the spot where it's consumed. Before that, they were transported for thousands of kilometers, even within the borders of China."

By far the world's largest vegetable producer, China has used greenhouses for decades, but food supply disruptions sparked by coronavirus lockdowns in 2020 have accelerated the development of high-tech glass greenhouse facilities.

To avoid future disruptions, municipal governments have said they aim to build up reserves of critical staples, and develop distribution and logistics facilities.

A growing affluent middle class, willing to pay more for higher quality food produced with less pesticides, is also fueling the trend, said greenhouse developers.

The area used for glass greenhouses grew 28% in 2020, well above the 5.9% rise seen in 2019, and faster than the 6% growth seen last year in areas housing cheaper plastic greenhouses, according to consultancy Richland Sources.

Plastic greenhouses help shield crops, but are considered less efficient than glass greenhouses. The latter can churn out high quality produce that is sold directly to retailers, reducing reliance on traditional supply chains.

"We see an irreversible trend since the pandemic in consumers buying more of their groceries online, and spending more on healthier choices and agricultural brands they trust," said Lim Xin Yi, executive director of sustainability at Pinduoduo, China's largest e-commerce platform by users.

BYPASSING THE MIDDLE MAN

Historically, China's vegetable production was concentrated in certain areas and required complex cold chain logistics networks for food to reach major cities' wholesale markets.

The vulnerability of that hub-centric system became apparent in 2020. COVID-19 outbreaks at a seafood market in Wuhan - ground zero for China's coronavirus pandemic - and at a major fresh market in Beijing caused a breakdown in the flow of goods to consumers, leading to food shortage and crop spoilage.

"The pandemic has pushed the fresh food industry to reduce the number of intermediaries in its supply chain network," said Gayathree Ganesan, an analyst at the Economist Intelligence Unit.

A farmer gathers cucumbers at Hengda greenhouse in Shanghai, China May 25, 2021. REUTERS/Aly Song

Built within city limits to reduce distance to buyers, the greenhouses are usually collaborative ventures between Chinese property firms and greenhouse companies from the Netherlands, a key player in agriculture technology.

FoodVentures' greenhouse outside Shanghai is a typical example.

Over three football fields long and two storeys high, one of the facility's units nurtures uniform rows of cherry tomato plants that snake up towards the ceiling. It is capable of producing up to 120 tonnes a month of cherry tomatoes.

"Being healthy is already a first protection against any virus, so people care even more about what they eat," said Aleven. "Secondly, ... we want to get rid of the long logistics because we are not sure if it always works and that's what we've seen during this pandemic."

"Localising it as much as possible is the only answer," he added.

Greenshouse-grown produce is usually sold directly to e-commerce platforms and supermarkets, bypassing the many middlemen and wholesale markets that are a traditional feature of China's vegetable supply chain.

Carrefour China, which is 80% owned by Chinese retail giant Suning, said its cooperation with greenhouses around cities has grown steadily in the past two years to meet consumer demand.

SUSTAINED EXPANSION

Further growth in key cities is likely, with a recent government document showing Beijing aims to more than double its "high-efficiency facility agriculture land" to over 300 hectares by 2025.

That growth could further cement China’s status as top vegetable producer. The country already accounts for 75% or more of global output of cucumbers, green beans, spinach and asparagus.

Xu Dan, CEO of greenhouse operator Beijing HortiPolaris, said his business benefited last year when a second coronavirus wave hit Beijing in June, shutting down a major wholesale market and driving his daily orders up 300%.

"(At that time) supermarkets were looking for growers with the ability to deliver within 24 hours and they had no time to search for new suppliers," he said.

But Xu said China could face some obstacles as it leaps into modern farming.

"The biggest challenges are people, people who have the knowledge to manage greenhouses to produce quality vegetables," he said.

“Most farmers are getting old and their way of production also out of date, replacing such (a) big amount of farmers is really a big challenge.”

Reporting by Emily Chow in Shanghai, additional reporting by Sophie Yu and Dominique Patton in Beijing and Beijing newsroom; Editing by Ana Nicolaci da Costa

USA: BOSTON - 'Space-Age Farming': Agtech Company Looks To Expand In Mass.

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By Miranda Perez - Inno Reporter

June 23, 2021

AppHarvest has a local office in Woburn and is looking to develop local tech centers under the direction of Chief Technology Officer Josh Lessing. AppHarvest

AppHarvest, a Kentucky-based, agriculture-tech startup, is looking to expand to Boston to further develop its tech-centered farming.

The company now has a local office in Woburn, and it's looking to develop local tech centers under the direction of its chief technology officer, Josh Lessing.

The company (Nasdaq: APPH) was founded in 2017 with the mission to modernize the way food is grown and delivered to large enterprises. It maintains indoor farms that operate year-round, using no pesticides to maintain freshness and relying on recycled rainwater to leverage sustainability.

“This brilliant technology, originally made in the Netherlands, where you could make food anywhere in the world, allows us to do it year-round, with 90% less water and with 30 times more yield per acre,” Lessing said.

The public company, which has 550 employees, is looking to “massively expand'' in upcoming projects in robotics and enterprise software for the agricultural industry. 

In a statement regarding it's 2020 annual filing, the company said it a "pre-revenue state in 2020," and reported a net loss of $17.4 million, compared to $2.7 million for the year before.

AppHarvest has one fully-functional farm right now with two more being built. The goal is to have a dozen by 2025.

The existing farm is a 60-acre building, which Lessing describes as “almost like being inside of some combination of a 60-acre robot and its own world.” Inside is an entire ecosystem of insects that support the pollination of fruits and manage to keep the “bad bugs” away. The main focus is on tomatoes now, but Lessing says he plan to expand to other fruits and vegetables.

Watering is automatic, through robotic systems. Other systems are designed to handle specially designed supplemental lights.

“It's just remarkably space age farming,” Lessing said.

AppHarvest food is available in the top 25 grocery stores and in some food service locations such as Kroger and Wendy’s.

“If you talk to a farmer, there's an infinite amount of work that you can be doing at a farm and there's never enough time to get it done. AppHarvest frees us up to start doing more individualized crop care,” Lessing said.

USA - FLORIDA: Finn Farms Begins Production At Babcock Ranch

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Reporter: Erika Jackson
Writer: Jackie Winchester

June 21, 2021

From Seeds To Your Table,

There’s A One-Of-A-Kind Prototype

Greenhouse In Southwest Florida

The goal is to naturally grow produce year-round without fighting Florida’s humidity, and one company did it with 95% less water than traditional agriculture.

“This is controlled environment agriculture at its best,” said Oskari Kariste, founder and CEO of Finn Farms at Babcock Ranch.

What exactly does that mean? To break it down, the greenhouse is about the size of a soccer field. It can seed 60,000 plants a day and produce 1.5 million pounds of greens a year. That’s the same as 60 acres of open-field farming.

“This is totally the future of farming,” Kariste said.

He brought Finnish farming to Southwest Florida, dropping it in the heart of Babcock Ranch.

“What better way to do it than when you’re thinking about sustainability and innovation all at the same time,” said Syd Kitson, CEO, and chairman of Kitson & Partners.

The $13 million greenhouse uses recycled rainwater and condensation from the plants. It takes 95% less water to keep these plants thriving compared to traditional farming.

The plants grow on 300-foot-long tables. Most are harvested in less than 30 days.

“You have to see taste and feel the production in your hands and we are able to show how premium our quality is,” Kariste said.

“It’s always local and fresh, I think that’s the key component.”

Finn Farms is negotiating with buyers to start selling its produce. Phase two of the project is expected to be double the size and include vertical farming.

Polygreens Podcast Episode: 31 - Richard Vollebregt - Part 2

 In this episode, Joe and Nick continue interviewing Richard Vollebregt, President & CEO of Cravo Equipment Ltd, a company that develops retractable roof production systems to enhance berry, cherry, cannabis, and vegetable production for growers worldwide.
His background in economics combined with 30+ years of experience designing automated retractable roof greenhouses, knowledge of plant physiology and my worldwide experience in many crop industries allows me to be very effective in designing crop production systems and then creating financial models which benchmarking again conventional greenhouses, tunnels, and open field production.

Latest Episode

USA - KENTUCKY: AppHarvest Announces Ground-Breaking For Fourth And Fifth High-Tech Indoor Farms

The Company’s Newest Large-Scale Controlled Environment Facilities, Located In Somerset and Morehead, Ky., Will Grow Strawberries And Leafy Greens, Respectively

June 21, 2021 

Source: AppHarvest

MOREHEAD, Ky., June 21, 2021 (GLOBE NEWSWIRE) -- AppHarvest, Inc. (NASDAQ: APPH, APPHW), a leading AgTech company, public benefit corporation and Certified B Corp focused on farming more sustainably using up to 90% less water than open-field agriculture and only recycled rainwater, today announced the start of construction for two new high-tech indoor farms in Central Appalachia. The company’s new farms, located in Somerset and Morehead, Ky., will grow berries and leafy greens, respectively.

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The high-tech Somerset farm marks the company’s expansion into growing berry crops. The Somerset indoor farm will be 30 acres.

The high-tech Morehead, Ky. farm is the second AppHarvest farm in Rowan County to date. The new Morehead facility will produce leafy greens and will be about 15 acres.

AppHarvest’s newest indoor farms in Morehead and Somerset are preceded by the company’s flagship 2.76-million-square-foot facility growing tomatoes in Morehead; a 15-acre facility in Berea that will grow leafy greens; and a 60-acre facility in Richmond that will grow vine crops.

"These new facilities place us exactly where we want to be at the forefront of AgTech. With today’s dual announcement, we put ourselves ahead of our development schedule,” said AppHarvest Founder & CEO Jonathan Webb. “Our Somerset and Morehead farms will build on the success of our flagship farm to provide higher quality produce using cutting-edge technology at a large scale.”

AppHarvest’s goal is to operate 12 high-tech indoor farms by the end of 2025, and today’s announcement means five of those now have been put on the map. Construction for both the Somerset and Morehead facility is anticipated to finish by the end of 2022.

“AppHarvest has positioned Kentucky as a leader in the AgriTech industry, created hundreds of good-paying jobs for our people and pushed through and thrived during some of our most difficult times,” said Gov. Beshear. “Even as a pandemic raged, Jonathan Webb and his team built one of the biggest indoor farming operations anywhere using one of the most advanced LED-lighting systems ever created. We know the jobs and investments of the future will flow to those who can meet these challenges, so why not us? AppHarvest is making it happen.” AppHarvest’s newest facilities will provide hundreds of well-paying jobs to Eastern Kentuckians in and around Somerset-Pulaski and Rowan Counties.

Both the Somerset-Pulaski and Rowan County facilities will produce non-GMO fruits and vegetables free of harsh chemical pesticides, to be distributed to top U.S. grocers and restaurants. Because of the company’s strategic location in Appalachia, AppHarvest can reach nearly 70% of the U.S. population in a day’s drive, with up to 80% less diesel fuel compared to existing growers in Mexico and the Southwestern U.S.

Supporting Quotes
Congressman Hal Rogers: “I am excited to welcome AppHarvest to Pulaski County and the Lake Cumberland area. Our rich farming history and skilled workforce makes southern Kentucky a prime partner for this innovative AgTech industry. As AppHarvest expands efforts to farm for our future, they are also inspiring a new generation of ingenuity and stellar work ethic that will benefit our region for generations to come.”

Somerset Mayor Alan Keck: “AppHarvest is breaking ground literally and imaginatively across Southern and Eastern Kentucky, and the company’s record growth creates a beautiful synergy with the record growth we are seeing in Somerset and Pulaski County. We share a vision for what this community and this region of Kentucky can become, that it can grow and thrive with the right nurturing and investment. We are thrilled AppHarvest chose Somerset and Pulaski County to expand and are honored to partner with this visionary company.”

Morehead Mayor Laura White-Brown: “This groundbreaking continues to highlight the progression of Eastern Kentucky and Appalachia. AppHarvest continues to pave the way for communities in this region by contributing to the workforce and economic development and at the same time helping to combat world hunger.”

Pulaski County Judge-Executive Steve Kelley: "What an exciting time this is to witness up-close an industry disruption. Who would have imagined that Southern and Eastern Kentucky could be an industry leader in produce supply? With AppHarvest’s vision and determination, we have that chance. We welcome AppHarvest to our county with open arms, and we can’t wait to see its prosperity here. It is victories like these that make me proud of my county."

About AppHarvest
AppHarvest is an applied technology company building some of the world’s largest high-tech indoor farms in Appalachia that grow non-GMO, chemical pesticide-free produce using up to 90% less water than open-field agriculture and only recycled rainwater while producing yields up to 30 times that of traditional agriculture on the same amount of land with zero agricultural runoff. The Company combines conventional agricultural techniques with cutting-edge technology including artificial intelligence and robotics to improve access for all to nutritious food, farming more sustainably, building a domestic food supply, and increasing investment in Appalachia. The Company’s 60-acre Morehead, Ky. facility is among the largest controlled environment agriculture facilities in the U.S. For more information, visit https://www.appharvest.com/.

Forward-Looking Statements
Certain statements included in this press release that are not historical facts are forward-looking statements for purposes of the safe harbor provisions under the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements generally are accompanied by words such as “believe,” “may,” “will,” “estimate,” “continue,” “anticipate,” “intend,” “expect,” “should,” “would,” “plan,” “predict,” “potential,” “seem,” “seek,” “future,” “outlook,” and similar expressions that predict or indicate future events or trends or that are not statements of historical matters. All statements, other than statements of present or historical fact included in this press release, regarding Novus Capital’s proposed acquisition of AppHarvest, Novus Capital’s ability to consummate the transaction, the benefits of the transaction and the combined company’s future financial performance, as well as the combined company’s growth plans and strategy, future operations, estimated financial position, estimated revenues and losses, projected costs, prospects, plans and objectives of management are forward-looking statements. These statements are based on various assumptions, whether or not identified in this press release, and on the current expectations of AppHarvest’s management and are not predictions of actual performance. These forward-looking statements are provided for illustrative purposes only and are not intended to serve as, and must not be relied on as, a guarantee, an assurance, a prediction, or a definitive statement of fact or probability. Actual events and circumstances are difficult or impossible to predict and will differ from assumptions. Many actual events and circumstances are beyond the control of AppHarvest. These forward-looking statements are subject to a number of risks and uncertainties, including those discussed in Novus Capital’s registration statement on Form S-4, filed with the SEC on October 9, 2020 (the “Registration Statement”), under the heading “Risk Factors,” and other documents Novus Capital has filed, or will file, with the SEC. If any of these risks materialize or our assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. In addition, forward-looking statements reflect AppHarvest’s expectations, plans, or forecasts of future events and views as of the date of this press release. AppHarvest anticipates that subsequent events and developments will cause its assessments to change. However, while AppHarvest may elect to update these forward-looking statements at some point in the future, AppHarvest specifically disclaims any obligation to do so. These forward-looking statements should not be relied upon as representing AppHarvest’s assessments of any date subsequent to the date of this press release. Accordingly, undue reliance should not be placed upon the forward-looking statements.

Important Information for Investors and Stockholders
In connection with the proposed transaction, Novus Capital has filed the Registration Statement with the SEC, which includes a preliminary proxy statement to be distributed to holders of Novus Capital’s common stock in connection with Novus Capital’s solicitation of proxies for the vote by Novus Capital’s stockholders with respect to the proposed transaction and other matters as described in the Registration Statement, as well as the prospectus relating to the offer of securities to be issued to AppHarvest’s stockholders in connection with the proposed transaction. After the Registration Statement has been declared effective, Novus Capital will mail a definitive proxy statement, when available, to its stockholders. Investors and security holders and other interested parties are urged to read the proxy statement/prospectus, any amendments thereto and any other documents filed with the SEC carefully and in their entirety when they become available because they will contain important information about Novus Capital, AppHarvest and the proposed transaction. Investors and security holders may obtain free copies of the preliminary proxy statement/prospectus and definitive proxy statement/prospectus (when available) and other documents filed with the SEC by Novus Capital through the website maintained by the SEC at http://www.sec.gov, or by directing a request to: Novus Capital Corporation, 8556 Oakmont Lane, Indianapolis, IN 46260. The information contained on, or that may be accessed through, the websites referenced in this press release is not incorporated by reference into, and is not a part of, this press release.

Participants in the Solicitation
Novus Capital and its directors and officers may be deemed participants in the solicitation of proxies of Novus Capital’s shareholders in connection with the proposed business combination. Security holders may obtain more detailed information regarding the names, affiliations and interests of certain of Novus Capital’s executive officers and directors in the solicitation by reading the Registration Statement and other relevant materials filed with the SEC in connection with the business combination when they become available. Information concerning the interests of Novus Capital’s participants in the solicitation, which may, in some cases, be different than those of their stockholders generally, is set forth in the Registration Statement.

MEDIA CONTACT: blair.carpenter@appharvest.com
INVESTOR CONTACT: kaveh.bakhtiari@appharvest.com
IMAGE/VIDEO GALLERY: Available here

Research Signify And Fragaria Innova Into Growing Strawberries With LED Bears Fruits

June 15, 2021

·     Provides better steering of the plants

·     Optimizes winter growth

·     Helps growers realize a stabile production pattern with high yield and good quality strawberries

Eindhoven, the Netherlands – Signify (Euronext: LIGHT), the world leader in lighting, has worked together with Fragaria Innova to develop specific light recipes for strawberries, resulting in a steady production pattern with high yield, and good quality strawberries in wintertime. The joint research over the past year helps to further optimize the winter production of the so-called ‘June bearers’, a strawberry cultivar known for relatively short peaks in production.

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Within Fragaria Innova, progressive strawberry growers commit themselves, together with external partners, to innovation surrounding the themes of growing under light and plant health. For growing under light, Fragaria Innova and market leader Signify conduct a multi-year program with participating growers/propagators. At one of the production companies, a special compartment has also been equipped with separate climate control, this enables the testing of several growth- and light strategies for multiple cultivars under full LED. One of the main goals of the research is realizing a (more) stable production pattern during wintertime.

Current winter productions usually take place with June bearers with a short production period of 8 to 10 weeks, after which a new planting in another section takes over production to create a stable, flat production. Unlit cultivation dominates before- and after the winter production.

“Extra growth light is needed to realize sufficient yield and quality in winter”, according to plant specialist Peer Hermans, who conducts the research on behalf of Signify. “The trials have shown that you can influence the plant build-up somewhat with specific light recipes, for which LED is ideally suited.” By accurately tuning the light intensity and spectrum offered to the developmental stage of the plant, you can optimize the leaf surface and stretching of the flower trusses and leaf stalks. A better plant build-up can benefit the production. The idea is to raise the production quality through light optimization.  

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Grower Marcel Dings from Brookberries, co-initiator behind Fragaria Innova, noticed some influence on the plant build-up, but the extra assimilates that came with it, went mostly to the crop and less to the fruits. Dings: “Next season will focus on how we can further optimize the division of the assimilates in the plant, and how we can get the assimilates to the fruits”. The grower notices that there are a lot of variables at play, such as: cultivars, planting times, cultivation goals, light spectra, light intensity, and the balance between natural daylight and artificial lighting. “The benefit of this new generation of LED grow lights is that we can play with lighting efficiently and that we can finetune the recipe to our own wishes and possibilities. Within this project, together we can achieve faster and more progress. I am satisfied with the results of this first year, but there is definitely room for further optimization. Hopefully, we can keep this going in the coming years.”

Grower Dave Linssen, a participant within Fragaria Innova (cultivar: Malling Centenary), had a trial with different spectra at one company location, planted in August just like his unlit crop. “The lit plants went into production earlier in winter, as expected. When it came to kilos and plant build-up, we hardly noticed any difference between the light spectra”, he concludes. “We may need to tinker a little to get the ideal light recipe for our company. It seems obvious to me that growing under LED is a desired addition.”

 Based on these encouraging results, the trial set-up for the coming season will be determined. Spectrum research and testing different cultivars will be part of this research. For more information on growing strawberries with LED grow lights, please go to www.philips.com/horti.

--- END ---

For further information, please contact:

Global Marcom Manager Horticulture at Signify

Daniela Damoiseaux

Tel: +31 6 31 65 29 69

E-mail: daniela.damoiseaux@signify.com

www.philips.com/horti

About Signify

Signify (Euronext: LIGHT) is the world leader in lighting for professionals and consumers and lighting for the Internet of Things. Our Philips products, Interact connected lighting systems and data-enabled services, deliver business value and transform life in homes, buildings and public spaces. With 2020 sales of EUR 6.5 billion, we have approximately 37,000 employees and are present in over 70 countries. We unlock the extraordinary potential of light for brighter lives and a better world. We achieved carbon neutrality in 2020, have been in the Dow Jones Sustainability World Index since our IPO for four consecutive years and were named Industry Leader in 2017, 2018 and 2019. News from Signify is located at the Newsroom, Twitter, LinkedIn and Instagram. Information for investors can be found on the Investor Relations page.

 About Innoveins | Fragaria Innova

Innoveins is an ecosystem where organizations cooperate at the cross-over between plants and technology to develop innovations through co-creation and bring them to the market.

Within Innoveins, Fragaria Innova unites ambitious strawberry growers to jointly tackle challenges in the areas of labor, upscaling, efficiency, plant health and resilience, biodiversity, growth media, product quality, continuity, delivery reliability and smart farming.