Little Leaf Farms Raises $90M to Grow Its Greenhouse Network

by Jennifer Marston

Image from: Little Leaf Farms

Massachusetts-based Little Leaf Farms has raised $90 million in a debt and equity financing round to expand its network of hydroponic greenhouses on the East Coast. The round was led by Equilibrium Capital as well as founding investors Bill Helman and Pilot House Associates. Bank of America also participated.

Little Leaf Farms says the capital is “earmarked” to build new greenhouse sites along the East Coast, where its lettuce is currently available in about 2,500 stores. 

The company already operates one 10-acre greenhouse in Devins, Massachusetts. Its facility grows leafy greens using hydroponics and a mixture of sunlight supplemented by LED-powered grow lights. Rainwater captured from the facility’s roof provides most of the water used on the farm. 

According to a press release, Little Leaf Farms has doubled its retail sales to $38 million since 2019. And last year, the company bought180 acres of land in Pennsylvania on which to build an additional facility. Still another greenhouse, slated for North Carolina, will serve the Southeast region of the U.S. 

Little Leaf Farms joins the likes of Revol Greens, Gotham Greens, AppHarvest, and others in bringing local(ish) greens to a greater percentage of the population. These facilities generally pack and ship their greens on the day of or day after harvesting, and only supply retailers within a certain radius. Little Leaf Farms, for example, currently servers only parts of Massachusetts, Pennsylvania, New York, and New Jersey. 

The list of regions the company serves will no doubt lengthen as the company builds up its greenhouse network in the coming months.

Bringing The Future To life In Abu Dhabi

Amid the deserts of Abu Dhabi, a new wave of entrepreneurs and innovators are sowing the seeds of a more sustainable future.

Image from: Wired

A cluster of shipping containers in a city centre is about the last place you’d expect to find salad growing. Yet for the past year, vertical farming startup Madar Farms has been using this site in Masdar City, Abu Dhabi, to grow leafy green vegetables using 95 per cent less water than traditional agriculture. 

Madar Farms is one of a number of agtech startups benefitting from a package of incentives from the Abu Dhabi Investment Office (ADIO) aimed at spurring the development of innovative solutions for sustainable desert farming. The partnership is part of ADIO’s $545 million Innovation Programme dedicated to supporting companies in high-growth areas.

“Abu Dhabi is pressing ahead with our mission to ‘turn the desert green’,” explained H.E. Dr. Tariq Bin Hendi, Director General of ADIO, in November 2020. “We have created an environment where innovative ideas can flourish and the companies we partnered with earlier this year are already propelling the growth of Abu Dhabi’s 24,000 farms.”

The pandemic has made food supply a critical concern across the entire world, combined with the effects of population growth and climate change, which are stretching the capacity of less efficient traditional farming methods. Abu Dhabi’s pioneering efforts to drive agricultural innovation have been gathering pace and look set to produce cutting-edge solutions addressing food security challenges.

Beyond work supporting the application of novel agricultural technologies, Abu Dhabi is also investing in foundational research and development to tackle this growing problem. 

In December, the emirate’s recently created Advanced Technology Research Council [ATRC], responsible for defining Abu Dhabi’s R&D strategy and establishing the emirate and the wider UAE as a desired home for advanced technology talent, announced a four-year competition with a $15 million prize for food security research. Launched through ATRC’s project management arm, ASPIRE, in partnership with the XPRIZE Foundation, the award will support the development of environmentally-friendly protein alternatives with the aim to "feed the next billion".

Image from: Madar Farms

Global Challenges, Local Solutions

Food security is far from the only global challenge on the emirate’s R&D menu. In November 2020, the ATRC announced the launch of the Technology Innovation Institute (TII), created to support applied research on the key priorities of quantum research, autonomous robotics, cryptography, advanced materials, digital security, directed energy and secure systems.

“The technologies under development at TII are not randomly selected,” explains the centre’s secretary general Faisal Al Bannai. “This research will complement fields that are of national importance. Quantum technologies and cryptography are crucial for protecting critical infrastructure, for example, while directed energy research has use-cases in healthcare. But beyond this, the technologies and research of TII will have global impact.”

Future research directions will be developed by the ATRC’s ASPIRE pillar, in collaboration with stakeholders from across a diverse range of industry sectors.

“ASPIRE defines the problem, sets milestones, and monitors the progress of the projects,” Al Bannai says. “It will also make impactful decisions related to the selection of research partners and the allocation of funding, to ensure that their R&D priorities align with Abu Dhabi and the UAE's broader development goals.”

Image from: Agritecture

Nurturing Next-Generation Talent

To address these challenges, ATRC’s first initiative is a talent development programme, NexTech, which has begun the recruitment of 125 local researchers, who will work across 31 projects in collaboration with 23 world-leading research centres.

Alongside universities and research institutes from across the US, the UK, Europe and South America, these partners include Abu Dhabi’s own Khalifa University, and Mohamed bin Zayed University of Artificial Intelligence, the world’s first graduate-level institute focused on artificial intelligence. 

“Our aim is to up skill the researchers by allowing them to work across various disciplines in collaboration with world-renowned experts,” Al Bannai says. 

Beyond academic collaborators, TII is also working with a number of industry partners, such as hyperloop technology company, Virgin Hyperloop. Such industry collaborations, Al Bannai points out, are essential to ensuring that TII research directly tackles relevant problems and has a smooth path to commercial impact in order to fuel job creation across the UAE.

“By engaging with top global talent, universities and research institutions and industry players, TII connects an intellectual community,” he says. “This reinforces Abu Dhabi and the UAE’s status as a global hub for innovation and contributes to the broader development of the knowledge-based economy.”

Is AppHarvest the Future of Farming?

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

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

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

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

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

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

How To Improve Plant Growth With Micro-organisms

Eric Hopper | 2018 
Presented by Sponsor: BluePlanet Labs

Takeaway: The advantages of beneficial micro-organisms in the garden are multifaceted, and experts believe their use will continue to expand throughout the horticulture industry. For indoor growers, beneficial micro-organisms are one of the keys to unlocking a garden’s full potential. The most common types of beneficial micro-organisms used by indoor growers can be broken down into three categories: beneficial bacteria, trichoderma and mycorrhizae.

Soil is so much more than just dirt. It is packed full of biological activity, and many growers consider it to be a living thing. In the last 10 years, researchers have started to understand just how important the biological activity in soil really is. Long-term use of chemical fertilizers, pesticides and herbicides has caused significant damage to the network of micro-organisms naturally found in soil.

We are starting to understand that without a healthy, living soil, sustainable horticulture is impossible, and as we continue to learn more about the intricate roles micro-organisms play in the soil, we see more methods, techniques and products aimed at maintaining the soil’s biological activity.

The reason indoor growers are getting so revved up about soil micro-organisms is because they help produce healthier growth and more abundant yields. To enjoy the benefits of beneficial microbes immediately, indoor growers can purchase soils or grow mediums inoculated with beneficial micro-organisms.

If the soil has not been inoculated, or if growers want to supercharge the biological activity of their soils, they can add beneficial micro-organisms either to the soil or to their feeding program. The types of beneficial micro-organisms commonly used by indoor growers can be broken down into three categories: beneficial bacteria, trichoderma and mycorrhizae.

Beneficial Bacteria in the Garden

There are many different types of beneficial bacteria indoor growers can use in the garden, the most common being soil-borne beneficial bacteria. There are many different strains of bacteria that live underground and provide benefits to plants. Depending on their strain, these bacteria help break down organic matter, add to soil composition, facilitate nutrient uptake and help protect plants and their roots from pathogens.

Adding beneficial bacteria to the soil or grow medium gives bacteria a chance to colonize and multiply quickly. A large population of colonizing beneficial bacteria equates to a faster breakdown of organic matter. This breakdown converts the organic matter into soluble compounds, which become readily available to plants. A healthy population of beneficial bacteria increases a plant’s ability to feed, which accelerates growth.

Aside from being inoculated into a medium, there are other ways beneficial bacteria are being put to use in an indoor garden. Many organic pesticides and fungicides contain strains of beneficial bacteria. Certain bacteria feed on pathogenic fungi, such as powdery mildew, and can be used as an effective treatment against such pathogens. Bacillus subtilis are a great example of beneficial bacteria used to treat powdery mildew. These bacteria are administered via foliar spray and are only effective where they make direct contact with the powdery mildew.

Beneficial bacteria have also made their mark as pesticides, especially for indoor plants. The bacterial species Saccharopolyspora spinosa is used as an effective, general-purpose insecticide due to its ability to affect the way an insect digests its food and the way it molts. Basically, the bacteria break the insect’s life cycle so it cannot continue to reproduce. Another bacterium commonly used as an insecticide is bacillus thuringiensis. Commonly referred to as BT, this beneficial bacterium is effective at controlling soft-bodied insect populations. In general, bacteria-based insecticides are much less toxic than their chemical counterparts.

(Special organic services for large scale agricultural grows are available from AquaClean)

Trichoderma in Horticulture

In an indoor garden, trichoderma are most commonly used as a preventative defense against pathogenic fungi. Trichoderma are specialized fungi that feed on other fungi, but it is actually the enzymes released by the trichoderma that give these microscopic, defensive all-stars their power.

Trichoderma release chitinase enzymes that break down chitin—the primary material that makes up the cell walls of pathogenic fungi. The chitinase enzymes released by trichoderma microbes eat away at the pathogenic fungi and, in turn, protect roots from being attacked.

Trichoderma have gained a reputation among indoor growers as being soil pathogen preventers. In fact, when a large population of pathogenic fungi exists in the soil, trichoderma increase chitinase production and feed almost exclusively on the pathogens.

Trichoderma also release another enzyme beneficial to indoor growers: cellulase. Cellulase are beneficial to the garden in two ways. First, cellulase aid in the breakdown of organic material in the soil, turning it into readily available nutrients for the plant. Second, cellulase can penetrate root cells. How can penetrating the cell walls of roots be beneficial?

It turns out that when the cellulase penetrate the root cells, they automatically trigger the plant’s natural defense system. The plant’s metabolism is stimulated, but no real harm is caused to the plant. In this regard, trichoderma has a synergistic relationship with plants. Trichoderma feed on sugars secreted by roots, while the plants develop a heightened resistance against pests and pathogens.

Mycorrhizae in Horticulture

The beneficial micro-organisms most commonly supplemented by indoor growers are mycorrhizae. Mycorrhizae are naturally occurring fungi that form symbiotic relationships with more than 90% of the world’s plant species, so their presence in the soil is imperative. Many soil companies are now incorporating mycorrhizae into their soils. You may even find that your favorite soil or medium is now being sold with added mycorrhizae, and even some lawn-care products now contain mycorrhizae.

There are a couple ways to supplement mycorrhizae in an indoor garden. Powder and liquid concentrates of mycorrhizae are available, which allow you to inoculate any type of medium or hydroponic system. The symbiotic relationship between mycorrhizae and roots may be the most important relationship in organic horticulture.

Essentially, mycorrhizal fungi become an extension of the root system and further their reach into the depths of the soil. This extension broadens the plant’s access to vital nutrients. As mentioned before, mycorrhizae have synergistic relationships with plant roots. The extending web of mycorrhizal fungi assimilate nutrients for the plant and the plant’s roots secrete sugars or carbon for the fungi to feed on.

Like with trichoderma, it is the enzymes produced by mycorrhizal fungi that make these microbes such an asset to plants. The enzymes released by mycorrhizae dissolve otherwise hard-to-capture nutrients such as organic nitrogen, phosphorus and iron. Although many mycorrhizal formulations contain both types of mycorrhizae and are sold as general mycorrhizal supplements, there are actually two types of mycorrhizal fungi commonly used by growers: endomycorrhiza and ectomycorrhiza.

• Endomycorrhiza are mycorrhizal fungi whose hyphae (long, branching filamentous structures of the fungus) penetrate the plant cells. Instead of penetrating the interior of the cell, the hyphae manipulate the cell membrane, turning it inside out, which increases the contact surface area between the hyphae and the cytoplasm. This helps facilitate the transfer of nutrients between them while requiring less energy than would otherwise be needed by the plant to do so. This specialized relationship increases the efficiency of nutrient uptake.

• Ectomycorrhiza are a group of fungi that have a structure surrounding the root tip. Ectomycorrhiza essentially surround the outer layer of the root mass. In nature, vast networks of ectomycorrhiza extend between plants, even if they are of different varieties, and allow plants to transfer nutrients to one another. The ectomycorrhiza act as a super highway for the transfer of nutrients.

When sourcing mycorrhizal products, you’ll notice that formulations contain both types of mycorrhizae. These two types can also be purchased individually. A closer look at the product label reveals the percentage of each type of mycorrhizae it contains. The label of any mycorrhizal product should also have an expiration date.

Although supplements in powdered form generally have a longer shelf life, micro-organisms are living creatures and their effectiveness dwindles as they age and die out. Liquid formulations tend to have a shorter shelf life, so you should plan on using these formulas more quickly.

As scientists learn more about the complex world of micro-organisms and how they affect horticulture, we get closer to creating the ultimate indoor growing environment. Organic growers are paying close attention to the development of beneficial micro-organism products.

Beneficial micro-organisms in the soil or grow medium boost nutrient uptake, aid in the breakdown of organic matter and increase a plant’s natural defense mechanisms. Whether they are used to treat powdery mildew or combat a pathogenic insect, certain micro-organisms get the job done without the environmental impact associated with harsh chemical treatments.

As Temperatures Rise, Earth's Soil Is 'Breathing' More Heavily

Study suggests carbon stored in soil is entering atmosphere faster, thanks to microbes

News Release

August 01, 2018 

• Tom Rickey, PNNL, (509) 375-3732

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Dead leaves are a common source of carbon that makes its way into the soil and then into the atmosphere. A PNNL study shows that carbon in soil is entering our atmosphere at an increasing rate.
Credit: Vision Webagency / Unsplash

RICHLAND, Wash. — The vast reservoir of carbon stored beneath our feet is entering Earth's atmosphere at an increasing rate, most likely as a result of warming temperatures, suggest observations collected from a variety of the Earth's many ecosystems.

Blame microbes and how they react to warmer temperatures. Their food of choice — nature's detritus like dead leaves and fallen trees — contains carbon. When bacteria chew on decaying leaves and fungi chow down on dead plants, they convert that storehouse of carbon into carbon dioxide that enters the atmosphere.

In a study published Aug. 2 in Nature, scientists show that this process is speeding up as Earth warms and is happening faster than plants are taking in carbon through photosynthesis. The team found that the rate at which microbes are transferring carbon from soil to the atmosphere has increased 1.2 percent over a 25-year time period, from 1990 through 2014.

While that may not seem like a big change, such an increase on a global scale, in a relatively short period of time in Earth history, is massive. The finding, based on thousands of observations made by scientists at hundreds of sites around the globe, is consistent with the predictions that scientists have made about how Earth might respond to warmer temperatures.

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"It's important to note that this is a finding based on observations in the real world. This is not a tightly controlled lab experiment," said first author Ben Bond-Lamberty of the Joint Global Change Research Institute,a partnership between the Department of Energy's Pacific Northwest National Laboratory and the University of Maryland.

"Soils around the globe are responding to a warming climate, which in turn can convert more carbon into carbon dioxide which enters the atmosphere. Depending on how other components of the carbon cycle might respond due to climate warming, these soil changes can potentially contribute to even higher temperatures due to a feedback loop," he added.

Globally, the soil holds about twice as much carbon as Earth's atmosphere. In a forest where stored carbon is manifest in the trees above, even more, carbon resides unseen underfoot. The fate of that carbon will have a big impact on our planet. Will it remain sequestered in the soil or will it enter the atmosphere as carbon dioxide, further warming the planet?

To address the question, the team relied heavily on two global science networks as well as a variety of satellite observations. The Global Soil Respiration Database includes data on soil respiration from more than 1,500 studies around the globe. And FLUXNET draws data from more than 500 towers around the world that record information about temperature, rainfall, and other factors.

"Most studies that address this question look at one individual site which we understand very well," said author Vanessa Bailey, a soil scientist. "This study asks the question on a global scale. We're talking about a huge quantity of carbon. Microbes exert an outsize influence on the world that is very hard to measure on such a large scale."

The study focused on a phenomenon known as "soil respiration," which describes how microbes and plants in the soil take in substances like carbon to survive, then give off carbon dioxide. Soils don't exactly breathe, but as plants and microbes in soil take in carbon as food, they convert some of it to other gases which they give off — much like we do when we breathe.

Scientists have known that as temperatures rise, soil respiration increases. Bond-Lamberty's team sought to compare the roles of the two main contributors, increased plant growth, and microbial action.

The team discovered a growing role for microbes, whose action is outstripping the ability of plants to absorb carbon. In the 25-year span of the study, the proportion of soil respiration that is due to microbes increased from 54 to 63 percent. Warmer temperatures can prompt more microbial action, potentially resulting in more carbon being released from carbon pools on land into the air.

"We know with high precision that global temperatures have risen," said Bond-Lamberty. "We'd expect that to stimulate microbes to be more active. And that is precisely what we've detected. Land is thought to be a robust sink of carbon overall, but with rising soil respiration rates, you won't have an intact land carbon sink forever."

In addition to Bond-Lamberty and Bailey, authors include Min Chen of JGCRI, Christopher Gough of Virginia Commonwealth University and Rodrigo Vargas of the University of Delaware.

The work was funded by the U.S. Department of Energy Office of Science.

Tags: Environment, Fundamental Science, Climate Science, Subsurface Science, Atmospheric Science, Microbiology

Pacific Northwest National Laboratory is the nation's premier laboratory for scientific discovery in chemistry, earth sciences, and data analytics and for solutions to the nation's toughest challenges in energy resiliency and national security. Founded in 1965, PNNL is operated by Battelle for the U.S. Department of Energy's Office of Science. DOE's Office of Science is the single largest supporter of basic research in the physical sciences in the United States, and is working to address some of the most pressing challenges of our time. For more information, visit PNNL's News Center.

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