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INTERACTIVE WORKSHOP: How To Make Your Network Part of Your Net “Worth”
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Little Leaf Farms Raises $90M to Grow Its Greenhouse Network
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.
by Jennifer Marston
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.
Indoor Farming Gains Ground Amid Pandemic, Climate Challenges
Investors used to brush off Amin Jadavji’s pitch to buy Elevate Farms’ vertical growing technology and produce stacks of leafy greens indoors with artificial light. Now, indoor farms are positioning themselves as one of the solutions to coronavirus pandemic-induced disruptions to the harvesting, shipping, and sale of food
Investors say urban farming can boost food security despite rising inflation, trade tensions and global food shortages.
Investors used to brush off Amin Jadavji’s pitch to buy Elevate Farms’ vertical growing technology and produce stacks of leafy greens indoors with artificial light.
“They would say, ‘This is great, but it sounds like a science experiment,'” said Jadavji, CEO of Toronto, Canada-based Elevate.
Now, indoor farms are positioning themselves as one of the solutions to coronavirus pandemic-induced disruptions to the harvesting, shipping, and sale of food.
“It’s helped us change the narrative,” said Jadavji, whose company runs a vertical farm in Ontario, and is building others in New York and New Zealand.
Proponents, including the US Department of Agriculture (USDA), say urban farming increases food security at a time of rising inflation and limited global supplies. North American produce output is concentrated in Mexico and the US southwest, including California, which is prone to wildfires and other severe weather.
Climate-change concerns are also accelerating investments, including by agribusiness giant Bayer AG, into multi-storey vertical farms or greenhouses the size of 50 football fields.
They are enabling small North American companies like Elevate to bolster indoor production and compete with established players BrightFarms, AeroFarms and Plenty, backed by Amazon.com Inc founder Jeff Bezos.
But critics question the environmental cost of indoor farms’ high power requirements.
Vertical farms grow leafy greens indoors in stacked layers or on walls of foliage inside of warehouses or shipping containers. They rely on artificial light, temperature control and growing systems with minimal soil that involve water or mist, instead of the vast tracts of land in traditional agriculture.
Greenhouses can harness the sun’s rays and have lower power requirements. Well-established in Asia and Europe, greenhouses are expanding in North America, using greater automation.
Investments in global indoor farms totalled a record-high $500m in 2020, AgFunder research head Louisa Burwood-Taylor said.
The average investment last year rose sharply, as large players including BrightFarms and Plenty raised fresh capital, she said.
A big funding acceleration lies ahead, after pandemic food disruptions – such as infections among migrant workers that harvest North American produce – raised concerns about supply disruptions, said Joe Crotty, director of corporate finance at accounting firm KPMG, which advises vertical farms and provides investment banking services.
“The real ramp-up is the next three to five years,” Crotty said.
Vegetables grown in vertical farms or greenhouses are still just a fraction of overall production. US sales of food crops grown under cover, including tomatoes, cucumbers and lettuce, amounted to 358 million kilogrammes (790 million pounds) in 2019, up 50 percent from 2014, according to the USDA.
California’s outdoor head lettuce production alone was nearly four times larger, at 1.3 billion kg (2.9 billion pounds).
The USDA is seeking members for a new urban agriculture advisory committee to encourage indoor and other emerging farm practices.
Plant Breeding Moves Indoors
Bayer, one of the world’s biggest seed developers, aims to provide the plant technology to expand vertical agriculture. In August, it teamed with Singapore sovereign fund Temasek to create Unfold, a California-based company, with $30m in seed money.
Unfold says it is the first company focused on designing seeds for indoor lettuce, tomatoes, peppers, spinach and cucumbers, using Bayer germplasm, a plant’s genetic material, said Chief Executive John Purcell.
Their advances may include, for example, more compact plants and an increased breeding focus on quality, Purcell said.
Unfold hopes to make its first sales by early 2022, targeting existing farms, and startups in Singapore and the United Kingdom.
Greenhouses are also expanding, touting higher yields than open-field farming.
AppHarvest, which grows tomatoes in a 60-acre greenhouse in Morehead, Kentucky, broke ground on two more in the state last year. The company aims to operate 12 facilities by 2025.
Its greenhouses are positioned to reach 70 percent of the US population within a day’s drive, giving them a transportation edge over the southwest produce industry, said Chief Executive Jonathan Webb.
“We’re looking to rip the produce industry out of California and Mexico and bring it over here,” Webb said.
Projected global population growth will require a large increase in food production, a tough proposition outdoors given frequent disasters and severe weather, he said.
New York-based BrightFarms, which runs four greenhouses, positions them near major US cities, said Chief Executive Steve Platt. The company, whose customers include grocers Kroger and Walmart, plans to open its two largest farms this year, in North Carolina and Massachusetts.
Platt expects that within a decade, half of all leafy greens in the US will come from indoor farms, up from less than 10 percent currently.
“It’s a whole wave moving in this direction because the system we have today isn’t set up to feed people across the country,” he said.
‘Crazy, Crazy Things’
But Stan Cox, research scholar for non-profit The Land Institute, is sceptical of vertical farms. They depend on grocery store premiums to offset higher electricity costs for lighting and temperature control, he said.
“The whole reason we have agriculture is to harvest sunlight that’s hitting the earth every day,” he said. “We can get it for free.”
Bruce Bugbee, a professor of environmental plant physiology at Utah State University, has studied space farming for NASA. But he finds power-intensive vertical farming on Earth far-fetched.
“Venture capital goes into all kinds of crazy, crazy things and this is another thing on the list.”
Bugbee estimates that vertical farms use 10 times the energy to produce food as outdoor farms, even factoring in the fuel to truck conventional produce across the country from California.
AeroFarms, operator of one of the world’s largest vertical farms, based in a former New Jersey steel mill, says comparing energy use with outdoor agriculture is not straightforward. Produce that ships long distances has a higher spoilage rate and many outdoor produce farms use irrigated water and pesticides, said Chief Executive Officer David Rosenberg.
Vertical farmers tout other environmental benefits.
Elevate uses a closed-loop system to water plants automatically, collect moisture that plants emit and then re-water them with it. Such a system requires two percent of the water used on an outdoor romaine lettuce operation, Jadavji said. The company uses no pesticides.
“I think we’re solving a problem,” he said.
Where Vertical Farming and Affordable Housing Can Grow Together
Some vertical farms grow greens in old warehouses, former steel mills, or other sites set apart from the heart of cities. But a new series of projects will build multistory greenhouses directly inside affordable housing developments
Some vertical farms grow greens in old warehouses, former steel mills, or other sites set apart from the heart of cities. But a new series of projects will build multistory greenhouses directly inside affordable housing developments.
“Bringing the farm back to the city center can have a lot of benefits,” says Nona Yehia, CEO of Vertical Harvest, a company that will soon break ground on a new building in Westbrook, ME, that combines a vertical farm with affordable housing. Similar developments will follow in Chicago and in Philadelphia, where a farm-plus-housing will be built in the Tioga District, an opportunity zone.
Inside each building, the ground level will offer community access, while the greenhouse fills the second, third, and fourth floors, covering 70,000 square feet and growing around a million pounds of produce a year. (The amount of housing varies by site; in Maine, there will be only 15 units of housing, though the project will create 50 new jobs.)
In Chicago, there may be a community kitchen on the first level. In each location, residents will be able to buy fresh produce on-site; Vertical Harvest also plans to let others in the neighborhood buy greens directly from the farm. While it will sell to supermarkets, restaurants, hospitals, and other large customers, it also plans to subsidize 10% to 15% of its harvest for local food pantries and other community organizations.
“By creating a large-scale farm in a food desert, we are creating a large source of healthy, locally grown food 365 days a year,” Yehia says.
Vertical Farming ‘At a Crossroads’
Although growing crops all year round with Controlled Environment Agriculture (CEA) has been proposed as a method to localize food production and increase resilience against extreme climate events, the efficiency and limitations of this strategy need to be evaluated for each location
Building the right business model to balance resource usage with socio-economic conditions is crucial to capturing new markets, say speakers ahead of Agri-TechE event
Although growing crops all year round with Controlled Environment Agriculture (CEA) has been proposed as a method to localize food production and increase resilience against extreme climate events, the efficiency and limitations of this strategy need to be evaluated for each location.
That is the conclusion of research by Luuk Graamans of Wageningen University & Research, a speaker at the upcoming Agri-TechE event on CEA, which takes place on 25 February.
His research shows that integration with urban energy infrastructure can make vertical farms more viable. Graamans’ research around the modelling of vertical farms shows that these systems are able to achieve higher resource use efficiencies, compared to more traditional food production, except when it comes to electricity.
Vertical farms, therefore, need to offer additional benefits to offset this increased energy use, Graamans said. One example his team has investigated is whether vertical farms could also provide heat.
“We investigated if vertical farms could provide not just food for people living in densely populated areas and also heat their homes using waste heat. We found that CEA can contribute to stabilizing the increasingly complex energy grid.”
Diversification
This balance between complex factors both within the growing environment and wider socio-economic conditions means that the rapidly growing CEA industry is beginning to diversify with different business models emerging.
Jack Farmer is CSO at vertical producer LettUs Grow, which recently launched its Drop & Grow growing units, offering a complete farming solution in a shipping container.
He believes everyone in the vertical farming space is going to hit a crossroads. “Vertical farming, with its focus on higher value and higher density crops, is effectively a subset of the broader horticultural sector,” he said.
"All the players in the vertical farming space are facing a choice – to scale vertically and try to capture as much value in that specific space, or to diversify and take their technology expertise broader.”
LettUs Grow is focussed on being the leading technology provider in containerised farming, and its smaller ‘Drop & Grow: 24’ container is mainly focussed on people entering the horticultural space.
Opportunities in retail
“This year is looking really exciting,” he said. “Supermarkets are investing to ensure a sustainable source of food production in the UK, which is what CEA provides. We’re also seeing a growth in ‘experiential’ food and retail and that’s also where we see our Drop & Grow container farm fitting in.”
Kate Hofman, CEO, GrowUp agrees. The company launched the UK’s first commercial-scale vertical farm in 2014.
“It will be really interesting to see how the foodservice world recovers after lockdown – the rough numbers are that supermarket trade was up at least 11 per cent in the last year – so retail still looks like a really good direction to go in.
“If we want to have an impact on the food system in the UK and change it for the better, we’re committed to partnering with those big retailers to help them deliver on their sustainability and values-driven goals.
“Our focus is very much as a salad grower that grows a fantastic product that everyone will want to buy. And we’re focussed on bringing down the cost of sustainable food, which means doing it at a big enough scale to gain the economies of production that are needed to be able to sell at everyday prices.”
Making the Numbers Add Up
The economics are an important part of the discussion. Recent investment in the sector has come from the Middle East, and other locations, where abundant solar power and scarce resources are driving interest in CEA. Graamans’ research has revealed a number of scenarios where CEA has a strong business case.
For the UK, CEA should be seen as a continuum from glasshouses to vertical farming, he believes. “Greenhouses can incorporate the technologies from vertical farms to increase climate control and to enhance their performance under specific climates."
It is this aspect that is grabbing the attention of conventional fresh produce growers in open field and covered crop production.
A Blended Approach
James Green, director of agriculture at G’s, thinks combining different growing methods is the way forward. “There’s a balance in all of these systems between energy costs for lighting, energy costs for cooling, costs of nutrient supply, and then transportation and the supply and demand. At the end of the day, sunshine is pretty cheap and it comes up every day.
“I think a blended approach, where you’re getting as much benefit as you can from nature but you’re supplementing it and controlling the growth conditions, is what we are aiming for, rather than the fully artificially lit ‘vertical farming’.”
Graamans, Farmer and Hofman will join a discussion with conventional vegetable producers, vertical farmers and technology providers at the Agri-TechE event ‘Controlled Environment Agriculture is growing up’ on 25 February 2021.
How This Vertical Farm Grows 80,000 Pounds of Produce per Week
To some, the pristine growing conditions and perceived mechanical interference of a vertical farm can seem unnatural, but at Bowery Farming “interference” is actually not the goal at all. “We don’t really think about how people are involved in the growing process, but how to take people out of the growing process”
Bowery Farming uses technology to prioritize accessibility and sustainability in their produce growing operations
To some, the pristine growing conditions and perceived mechanical interference of a vertical farm can seem unnatural, but at Bowery Farming “interference” is actually not the goal at all. “We don’t really think about how people are involved in the growing process, but how to take people out of the growing process” says chief science officer Henry Sztul. “Our goal is actually to have as few people walking around our plants as possible.”
Bowery Farming is a network of vertical farms working to reengineer the growing process. Using a system of light and watering technology, Bowery is able to use 95 percent less water than a traditional outdoor farm, zero pesticides and chemicals, and grow food that tastes as good as anyone else’s.
Bowery Farming uses vertical farm-specific seeds that are optimized for flavor instead of insect resistance and durability. Seeds are mechanically pressed into trays of soil, and sent out into growing positions, or racks within the building that have their own lighting and watering systems. Each tray gets its own QR code so that they can be monitored and assigned a customized plan for water and light until they’re ready to be harvested.
Irving Fain, Bowery Farming’s founder and CEO contemplates the prediction from the United Nations that 70 to 80 percent of the world’s population will be living in and around cities in the next 30 years. “Figuring out ‘how do you feed and how do you provide fresh food to urban environments both more efficiently as well as more sustainably?’ is a very important question today, and an even more important question in the years to come.”
Indoor Farming Company With Backing From Ubben Aims to Solve The Problems With America’s Produce
The agriculture technology company focuses on building an indoor farm in Appalachia. The company combines agricultural techniques with cutting-edge technology and including access for all to nutritious food, farming, and building a homegrown food supply. The company operates a 60-acre controlled environment, agriculture facility in Morehead, Kentucky, which grows juicy beefsteak tomatoes and tomatoes on the vine
Company: AppHarvest Inc. (APPH)
The agriculture technology company focuses on building an indoor farm in Appalachia. The company combines agricultural techniques with cutting-edge technology and including access for all to nutritious food, farming, and building a homegrown food supply. The company operates a 60-acre controlled environment, agriculture facility in Morehead, Kentucky, which grows juicy beefsteak tomatoes and tomatoes on the vine. It also operates a 60-acre indoor farm, outside Richmond, Kentucky, where it cultivates fresh fruits and veggies.
The company’s technological systems monitor the pollination across all 68 bays and 684 rows of plants. AppHarvest is only the fourth U.S. public Certified B corporation. A B corporation is a company that has (1) achieved a high standard of social and environmental performance as measured by the B Impact Assessment, (2) verified their scores through transparency requirements, and (3) made a legal commitment to consider all stakeholders, not just shareholders. Any company can apply to be one.
Stock Market Value: $3.3 billion ($33.26 per share)
Activist:
Inclusive Capital
Percentage Ownership:
12.05%
Average Cost:
n/a
Activist Commentary:
Inclusive Capital Partners was formed in 2020 by ValueAct founder Jeff Ubben, to leverage capitalism and governance in pursuit of a healthy planet and the health of its inhabitants. The firm seeks long-term shareholder value through active partnership with companies whose core businesses contribute solutions to this pursuit. Inclusive is a returns driven fund with a focus on environmental and social investing.
Their primary focus is on environmental and social value creation, which leads to shareholder value creation. It is the successor to the ValueAct Spring Fund, which was launched in January 2018 and merged into Inclusive in 2020.
Inclusive is building a huge network and has accessed experts in industries such as energy, electrification, water, agriculture, food production, particulates, education and human rights. Just like ValueAct’s constructive, patient investment style, Inclusive will seek to earn the trust of managers, board members and institutional investors.
Jeff Ubben serves as the portfolio manager and Eva Zlotnicka serves as vice president. Eva has a pre-existing relationship with ValueAct through their interactions with Morgan Stanley, where she served as a VP and U.S. lead for the Global Sustainability Research Team. At Morgan Stanley, she worked to help address and raise awareness of environmental and social issues both inside and outside of corporations.
What’s Happening:
Jeff Ubben was appointed to the company’s Board in connection with the company’s business combination with Novus Capital.
Behind the Scenes:
This was initially an investment of ValueAct Spring Fund, which was converted into Inclusive Capital in 2020. Jeff Ubben first met AppHarvest founder Jonathan Webb in 2017 and has been involved with the company since the 2018 Series A round, working with Webb to put the management team together and develop a strong balance sheet. The company went public on February 1, 2021 through a $100 million SPAC transaction and a $375 million PIPE investment. Jeff Ubben is on the board where he can continue to help the company execute.
AppHarvest plans on having 12 facilities by 2025. The goal here is to make Kentucky the Netherlands of North America. The Netherlands (at 16,000 square miles) is the second largest agricultural exporter in the world, using greenhouse technology to feed two-thirds of all of Europe. In comparison, the state of Kentucky is 40,000 square miles and the US is 3.8 million square miles. AppHarvest’s motivation is first and foremost to benefit society, but if successful would have extraordinary financial returns as well.
As of 2018, 69% of fresh vine crops in the U.S. were imported, mostly from Mexico. These crops are pesticide-laden and grown using labor practices not up to U.S. standards. Moreover, they sit at the border for days and are driven 2,000+ miles to their destination, using tons of diesel fuel and resulting in less fresh produce. AppHarvest produces crops with no pesticides with greater nutrient density, and from their central location can reach 70% of the U.S. population in one day resulting in 80% less diesel fuel and much lower emissions. However, the larger environmental and economic benefit is in how the crops are grown — using 90% less water and yielding thirty times more per acre.
Moreover, AppHarvest’s resources are nature based – the greenhouse structure allows them to use 12 hours of sunlight per day and they collect the heavy Kentucky rainfall for their system resulting in a much less adverse effect on the water supply while greatly decreasing their cost of production by not having to pay for water. The greenhouse system also eliminates any weather or seasonal constraints, allowing the company to grow more efficiently 365 days per year.
While the company has no historic revenue, they just made their first delivery of beefsteak tomatoes on January 19, 2021, to customers that include Walmart, Kroger and Publix
Bringing The Future To life In Abu Dhabi
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
Amid the deserts of Abu Dhabi, a new wave of entrepreneurs and innovators are sowing the seeds of a more sustainable future.
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".
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.”
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.”
Democratic Mayoral Candidates Offer Ideas for Addressing Food Insecurity
Nine candidates vying for the Democratic nomination to become the next mayor of New York City gathered Tuesday morning in a virtual forum to discuss their visions for the city's food policy and serving the roughly 2 million New Yorkers who are food insecure
Nine candidates vying for the Democratic nomination to become the next mayor of New York City gathered Tuesday morning in a virtual forum to discuss their visions for the city's food policy and serving the roughly 2 million New Yorkers who are food insecure.
At the "Town Hall on the Future of Food in New York City" -- hosted by Hunter College in partnership with City Harvest, CUNY Urban Food Policy Institute, Food Bank for NYC, Hunger Free America, and other organizations, and moderated by NY1 anchor Errol Louis -- the candidates discussed the city's urgent need to manage rampant hunger during the pandemic and center it in the recovery effort. But the discussion also focused on the pre-existing problems of food insecurity, inequitable access to nutritious meals, and inefficiencies and lack of sustainability in the city's food use.
The participants, who were selected based on their polling and fundraising standings among a field of dozens of candidates, included Brooklyn Borough President Eric Adams, former federal housing secretary Shaun Donovan, former city sanitation commissioner and "covid food czar" Kathryn Garcia, former Citigroup executive Ray McGuire, former nonprofit executive Dianne Morales, former city veterans' services commissioner Loree Sutton, city Comptroller Scott Stringer, small business owner Joycelyn Taylor, and Maya Wiley, a civil rights attorney and former counsel to Mayor Bill de Blasio. Louis pushed them to focus on how they would bring anti-hunger initiatives to scale to address the food crisis compounded by the pandemic.
Programs to help feed New Yorkers have often missed the mark, failing to meet adequate health standards and leaving many New Yorkers out entirely. A 2017 study from the Robin Hood Poverty Tracker found 1 in 4 eligible food stamp, or SNAP, recipients -- 700,000 New York City residents -- were not enrolled in the program, less than the statewide participation rate of 93 percent the same year, according to the Center on Budget and Policy Priorities. In September, the Poverty Tracker reporter 1.7 million New Yorkers were getting food stamps, over 200,000 more than last February. During roughly the same period the percentage of food stamp recipients who also used a food pantry doubled, from 27 percent of enrollees to 60 percent.
Nearly all candidates agreed on the need to increase SNAP benefits, and improve enrollment in the program; expand community gardens and urban agriculture; and improve access to nutritious food throughout communities and in institutional settings like schools and food pantries. There was also broad consensus around creating a more unified food procurement and distribution system in New York City by strengthening the Mayor's Office of Food Policy. Multiple candidates highlighted the frequent lack of coordination among the myriad city agencies that provide food as part of their services.
"One of the reasons why I needed to step in is that the Mayor's Office of Food Policy is incredibly understaffed," said Garcia, who managed the city's emergency food response last summer before leaving the de Blasio administration last fall and launching her campaign to succeed him.
"[Food Policy Director] Kate McKenzie does an amazing job but she doesn't have procurement authority, she doesn't have logistical authority...one of the clear things is how we approach food is very siloed, very fragmented," Garcia said, noting the separate food procurement activities of the Department of Education, Department of Correction, and senior centers. Garcia says the city provided 1 million meals a day and shored up food pantries last summer under her leadership. (Shortly after the forum, Garcia released a multi-pronged platform to fight food insecurity with an emphasis on enrolling more New Yorkers in SNAP and expanding what the benefits would cover.)
Adams, who repeatedly discussed the need for nutritious food, criticized the nutritional value of many of the government-provided or -supported food services, including Garcia’s covid effort, and said increasing the size of the Mayor's Office of Food Policy would have a limited impact if the city did not also incorporate the new perspectives from food-access "visionaries."
"They don't share the values," Adams said of the city's food-oriented bureaucrats, historically. "I am amazed at the roadblocks, that organizations like Rockaway Youth Task Force are not able to scale," he said during a segment of the conversation on urban agriculture programs.
Some of the candidates saw the city's food dilemmas rooted in job scarcity and low wages and frequently discussed the importance of building food policy into the city's economic recovery.
"We solve none of this if we don't recognize that fundamentally what is broken and why 30% of our people were not eating through the month before covid is because the rent was too damn high and people were choosing to pay rent instead of buying groceries," Wiley said, adding, "at the end of the day it is about the city's ability to generate new jobs." Wiley has announced a plan as mayor to create 100,000 jobs through a $10 billion capital investment and cited it as an example of how she would leverage existing city resources to bring her approach to scale.
"Fundamentally, food insecurity is about income and it is about the fact that we do not intentionally ensure that our young people have pathways to careers and are prepared for the careers of the 21st Century," said Garcia.
The conversation of workforce development dovetailed with another on building an urban agrarian economy in New York to create good jobs and ensure both sustainable and equitable food access for city residents.
"We need to also think about aligning not just food policy, but the resilience office that exists right now to work more in tandem with each other because we know that food justice is also climate justice," said Morales, who was the executive director of Phipps Neighborhoods in the South Bronx, a social services provider. As mayor, Morales said she would invest $25 million to food innovation and sustainability programs in communities of color.
Multiple candidates, including Stringer, Donovan, and Adams wanted to see a greater emphasis on local and regional food procurement. "If I'm mayor, I really want to create a Mayor's Office of Food Markets because we've got to link farming with communities and for a farm-to-table policy that brings the purchasing power of this city regionally, upstate, downstate, and create those relationships," Stringer said. "Farmers markets should be everywhere."
"There is huge potential to grow, so to speak, the power of locally-grown produce," said Donovan, who was the city’s housing commissioner under Mayor Bloomberg before spending all eight years in the Obama presidential cabinet. "We need innovative approaches to ensure we are using every inch of available space that we can." Like other candidates, he expressed support for ideas like more community gardens and vertical agriculture. Donovan also repeatedly stressed the need to support struggling restaurants and incorporate them into the city's food programs as well as its economic recovery.
While supportive of partnerships with upstate and Long Island counties, Garcia took issue with the notion that New York could achieve a sustainable food market locally. "If we want fresh, healthy food day in and day out, we're not harvesting today in this region, we are going to have to bring it in," she said following Donovan's comments. "We need to make sure the systems go beyond just this region so that we can still be getting lettuce even though it's February."
"That should not hold us back from starting to have a robust agrarian economy in New York City," Adams countered, echoing Donovan's statements about the importance of life sciences in city schools and connecting lessons about food production to healthy eating.
When asked directly whether they would use the city's power of eminent domain to force the sale of private land for the city to use, most candidates raised their hands affirmatively. Adams expressed his dissent, noting that the many existing city resources that he said are being wasted or under-utilized should be tapped before forcing land sales. (Others also raised the importance of better using available land, with Stringer naming a report he issued as comptroller on the number of vacant city-owned lots that could be used to develop housing and noting that many lots could also be used for community gardens.)
McGuire, who recently stepped down from one of the biggest jobs on Wall Street to run for mayor, also criticized the mismanagement of city resources and cautioned on the costs to the city that eminent domain could pose. "It gets expensive so you have to figure out when you exercise eminent domain at market rates who is going to pay for it," he said.
Equity was an overriding theme in a number of areas of the food policy discussion, from eradicating food deserts to ensuring healthy options in schools and pantries.
"I think we do have a moral obligation to ensure that every resident of the city has those basic needs of food and housing," said Taylor, who created the nonprofit NYC WMBE Alliance, according to her website. "We have to make sure that when we look at the budget we look things that are 'nice to have' and things that are 'needs to have,' and if it means that we have to reallocate funds from the things that are nice to have to the needs, then that's what I would do."
"We need to stop leaving communities out of the co-creation process," said Morales, who stressed participation of food advocacy groups.
Wiley and Taylor also discussed the need for community participation in the form of locally-based food councils to inform nutrition, per Wiley, and more active mayoral outposts in each borough, per Taylor. Both also discussed the importance of collecting more targeted data to better determine the outcomes of food programs. Other candidates outlined plans or past work to incorporate cultural sensitivity into food access, including then-Manhattan Borough President Stringer's 2008 "Go Green East Harlem Cookbook" and Garcia's discussion of halal and kosher options in meal services, something others mentioned as well.
The candidates agreed that compounded structural problems of food deserts and the reliance of low-income communities on the city's various food programs exacerbate malnutrition and health outcomes, but not all offered the same solution.
"Today food deserts are such that many of our people don't have access to healthy food. They have access to those institutions that provide food that is pretty low on the nutrition scale," McGuire said. He laid out a more corporate-friendly view of the path forward, that involved rezoning to allow big supermarket chains, hiring gig workers to deliver meals to seniors, and bringing refrigeration resources to bodegas in order to better store fresh produce.
As is often the case, Morales was at the other end of the spectrum, saying she supports community land trusts to create both better access to fresh produce and greater "food sovereignty" in poor communities. Sutton said the solution was to leverage public-private partnerships.
"It's one thing to talk about all these ideas, but in the same breath to disdain, disparage and disrespect the top 1 percent of New Yorkers who bring in nearly 40 percent of our tax base or reject and shun real estate as one example, as a number of my fellow candidate have during this campaign," said Sutton, a former Army psychiatrist who led de Blasio's Department of Veterans' Services. "We are absolutely shutting down those pathways to partnership and prosperity."
Recycling Solar Energy for Indoor Farming Use
New patented technology that recycles renewable energy is ready to revolutionize CEA (Controlled Environment Agriculture) and make indoor farming both more profitable and more attainable in remote rural areas. This upgrade in solar technology offers benefits for farmers, consumers, businesses, environmentalists and local governments
New patented technology that recycles renewable energy is ready to revolutionize CEA (Controlled Environment Agriculture) and make indoor farming both more profitable and more attainable in remote rural areas. This upgrade in solar technology offers benefits for farmers, consumers, businesses, environmentalists and local governments.
Two businesses are building a prototype of the vertical farm of the future in Marquette, Kansas (pop. 620.) The indoor farm will recycle its own solar energy at night and during storms by absorbing LED light energy when it’s used to illuminate the interior growing spaces. The 60-unit, 11-acre prototype development will function independently of the local power grid using technology designed and built by Kansas native David Hinson, CTO of TSO Greenhouses.
This technology will reduce burdensome costs of power, water, financing, real estate acquisitions, and property taxes. Such hurdles have often been the downfall of previous vertical farms, especially in urban areas. The forward-thinking pair’s plan addresses and solves all of these challenges.
The duo’s “ag tech campus” model includes accelerated growing of all-natural, clean food and protein fodder as well as reliable 5G internet for rural farmers, citizens and businesses. The entire system will be powered by renewable energy and make digital telecom deployment more practical.
Hinson’s technology enables roof-mounted “solar trackers” to capture LED energy at night from the light reflected inside the structures that house hydroponic crops growing inside. These trackers rotate East to West when the sun is shining and then flip inward at night and during bad weather.
As a result, farmers can harness the energy generated “off-hours” to grow a variety of crops 24 hours a day in multiple vertical “stacks” based on bespoke microclimates. Growing by “zones” inside a multi-level structure boosts crop production and horticulture flexibility. Traditional indoor farms and rudimentary greenhouses usually grow only 1-2 crops for local distribution.
In contrast, these new farms will be able to produce 10-15 different plant species simultaneously. Increased agility and production speed will also improve vertical farmers' ability to react to sudden demand shifts.
5G Adds Lucrative Tech Payoff to Growth Cycle
Since the new 24/7/365 solar energy recycling technology only needs 33 percent to 40 percent of the harnessed energy, developers and farmers can sell excess energy for additional revenue. The local clean energy will power wireless 5G with the help of small rotating solar trackers with batteries. These trackers can be placed on community buildings, water towers, grain elevators, farm silos, bridge spans, existing cell towers and other permanent objects to ensure uptime and reliability.
This new source of 5G will create emerging markets for renewable energy, boosting rural economies. In the past, 5G telecom has been difficult to install and deploy in remote areas.
Path Diversity will be a game-changer
The pair plan to locate data centers near 100GB digital fiber trunks to further reduce the cost and time required to deploy 5G wireless. High-end data processing groups pay premium rates for 5G, which is rated as Tier 5 (aka T5 or always-on) based on its reliability. T5 is far less subject to outages and service disruptions.
Such state-of-the-art data centers are expected to attract the largest data processing groups in the world based on their enhanced functionality and amenities. This market also provides another lucrative revenue stream for farmers and tax-equity entrepreneurs interested in sustainability.
Investors Can Support Sustainability with “free money”
Freedom Farms CEO Geist and TSO Greenhouses Hinson have already raised nearly half a million dollars for Phase One, which will be the prototype of the vertical farming headquarters. They’re seeking an additional $2.5 million to finish the prototype by summer 2021.
Phase Two will be devoted to building 12 larger campuses that will fan out statewide from the headquarters in McPherson, Kansas. The entire $2 billion hub-and-spoke sustainability system is targeted for completion by 2030. Yields are expected to feed nearly 3 million residents statewide including many school lunch programs. Local hospitals, restaurants, colleges, universities, assisted living centers and public agencies are expected to become customers of the same-day harvests.
Investors will be able to reap these profits without ever risking their own money. Thanks to little-known U.S tax credit programs and clean-energy incentives, these projects don’t require a cash infusion. VC firms can "pool" their tax obligations, converting them to credits. This structure sets the project apart from previous urban farms or sluggish VC-funded startups.
Solar panels rotate with the sun so direct sunlight can reach inside the CEA facility and stimulate photosynthesis. Software allows the indoor farmer to create direct sun exposure on certain plants while creating shade for others, all based on each plant’s DNA preference.
The solar panels (modules) can be fully closed facing outward to create 100% shade inside if desired for any length of time controlled by the grower. By using TSO Greenhouses’ technology, vertical farmers and greenhouse growers can control and optimize sun and shade exposure simultaneously. This allows different crops to grow in zones inside the structure tailored precisely to receive the ideal light and shade to maximize plant life and production.
This 11-acre greenhouse will eventually serve as a headquarters to 12 smaller greenhouse hubs across Kansas. What makes this greenhouse unique is its ability to recycle solar energy to grow crops 24 hours a day while powering lucrative 5G data centers.
In Malahide, Two Friends Raise A Vertical Farm
When salesman Jack Hussey finishes his work day, he closes the laptop, leaves his home in Malahide and walks 10 minutes down the road. At the bottom of his friend’s farm sits an outhouse with a coldroom which now hosts his side business, Upfarm. A farm that goes upwards
When salesman Jack Hussey finishes his work day, he closes the laptop, leaves his home in Malahide and walks 10 minutes down the road. At the bottom of his friend’s farm sits an outhouse with a coldroom which now hosts his side business, Upfarm. A farm that goes upwards.
Imagine a shelf rack, says Hussey. “We’ve kitted the roofs of each shelf with an LED grow light. It’s to replicate the sunlight basically.”
A photo of the farm shows purple light beaming down on thick heads of lemongrass and basil, stacked on shelves. Yields from vertical farming are far more efficient than in-the-ground farming, Hussey said, on the phone last Friday.
He likens it to real estate. “You can have houses that are populated side by side or you can start going upwards with apartments.”
From Podcast to Table
Hussey always had an interest in food, he says. Last year he and a school friend, Bill Abbott, began to look into urban farming.
“But we were saying, is farming in the ground actually the best route to go?” Hussey says.
It’s labour intensive, which didn’t suit the two guys, who work other full-time jobs. Then, in March 2020, Hussey heard a podcast with American urban farmer Curtis Stone. He had an urban farm where he was using a spin-farming method, says Hussey. “It’s what they call it. You rotate crops out of the ground in a much more efficient way.”
“Essentially he was able to capitalise on a third acre of land. He was able to take in 80k a year,” he says.
Hussey was inspired by that, by somebody making the most of a small bit of land. So in June last year, in the middle of a pandemic and juggling working from home, Hussey and Abbot set about doing the same, albeit with a different model, and launched their vertical farm.
How It Works
Farmony, which specialises in tech for vertical farming, sold Upfarm with the tools to get up and running – shelves, special LED lighting, a watering system and humidifiers. It is the ideal conditions for growing produce, says Framony co-founder John Paul Prior. Nutrients, hours of light, humidity and temperature are controlled in vertical farming, Prior says.
But Farmony is also a data company, Prior says. “So we capture data at all stages of the growing cycle. And we feed that back to the grower.”
This helps the grower to establish the optimum conditions, he says. “That’s not just in terms of plant growth, that’s in terms of workflow management.”
The size of an operation can be the small coldroom in Malahide that uses one Farmony module, and produces microgreens and wheatgrass for sale. Or it can be like a farm in Tipperary with 60 modules, he says. A module is 1 metre wide, 1.3 metres long and 2.5 metres tall, Prior says. Hussey says it is labour-intensive looking after a vertical farm module.
After work last Thursday, he and his dad replanted his microgreen crops into 30 different trays. “It took about two hours,” he says.
What Is the Benefit?
“So as long as you can control your temperature, your humidity, and your nutrient levels in the water, you can basically grow all year round,” says Prior. Vertical farming also means better conditions for workers, Prior says.
“If you’re working in a controlled environment, like a vertical farm, you’re working in a clean environment,” Prior says.
“You work between 18 to 22 degrees. There’s no harsh frost. There’s no extreme cold winters, equally there’s no burning-hot summers.,” says Prior.
The crop is consistent too, says Prior, thanks to the controlled environment.
“Let’s say I’m someone who loves basil and who makes a lot of pesto at home,” he says.
Getting basil of consistent quality from the supermarket can be difficult when it comes from different countries, or may have been sitting on a shelf for days after travelling thousands of miles, he says.
Why Is this Important?
Soil quality is dropping, Hussey says. “What does that mean for outdoor growing?”
The answer, Hussey says, is vertical farming. It uses mineral-rich water so it doesn’t rely on nutrients from the ground, Hussey says.
Says Prior: “Vertical farming uses about 10 percent of the water of traditional farming.”
Prior says it takes less energy to get food from a nearby vertical farm than to ship it from afar. It was not always the case until a breakthrough in another industry, he says.
“Billions of dollars have been invested in the cannabis industry globally. It’s meant that the investment in grow-lighting technology has been huge,” he says.
“As a result, the price, the efficiency and most importantly, the energy efficiency of the lighting is really amazing” he says.
Says Hussey: “It’s not easy work but it is nice work. It’s good work.”
UNFI Picks Up Living Greens Farm Products in Midwest Expansion
Living Greens Farm (LGF), the largest vertical, indoor aeroponic farm in the US that provides year-round fresh salads, salad kits, microgreens and herbs, announced the addition of significant new retail distribution of its products in the upper Midwest to independent, specialty, and co-op retailers
Living Greens Farm (LGF), the largest vertical, indoor aeroponic farm in the US that provides year-round fresh salads, salad kits, microgreens and herbs, announced the addition of significant new retail distribution of its products in the upper Midwest to independent, specialty, and co-op retailers.
Starting February 2021, LGF’s full line of products featuring ready-to-eat bagged salad products (Caesar Salad Kit, Southwest Salad Kit, Harvest Salad Kit, Chopped Romaine, and Chopped Butter Lettuce) will be carried by UNFI Produce Prescott (formerly Alberts Fresh Produce). UNFI Produce Prescott is a division of UNFI, which distributes food products to thousands of stores nationwide. Their focus is on independent, specialty and co-op retailers.
UNFI has eight warehouses nationwide. LGF’s products will be carried by their upper Midwest location, located just across the river from the Twin Cities in Prescott, WI. This distribution center services hundreds of retailers throughout Minnesota, Wisconsin, Illinois, North Dakota, South Dakota, Missouri, Iowa and Nebraska. UNFI is the first national Certified Organic distributor, something they take a lot of pride in. Their produce and floral businesses are rooted in local farms and seasonal import growers.
LGF’s proprietary vertical indoor farming method yields the highest quality and freshest produce available. This is because there are no pesticides or chemicals used in the growing process. And because LGF’s growing, cleaning and bagging process significantly reduces handling and time to the retail shelf, consumers enjoy the freshest product on the market. These benefits continue to attract new users and new retail distribution as UNFI Produce Prescott is the second UNFI location to carry LGF. In December, UNFI’s Hopkins, MN location began offering LGF products.
For more information on why Living Greens Farm products are the cleanest, freshest and healthiest farm salads and greens available, go to www.livinggreensfarm.com.
Fifth Season Takes Vertical Farming to a Whole New Level
Fifth Season’s verdant baby spinach screams farm fresh even though it’s grown nowhere near traditional farmland. The sweet and slightly crunchy greens are grown in a Braddock warehouse on racks stacked 30 feet high. Located just a stone’s throw from U.S. Steel’s Mon Valley Works Edgar Thomson Plant, it is urban farming at its core
Fifth Season’s verdant baby spinach screams farm fresh even though it’s grown nowhere near traditional farmland. The sweet and slightly crunchy greens are grown in a Braddock warehouse on racks stacked 30 feet high. Located just a stone’s throw from U.S. Steel’s Mon Valley Works Edgar Thomson Plant, it is urban farming at its core.
What makes the vertical farming operation especially unique is that it is automated and robots call the shots. About 40 to 60 machines are involved in every step of the life of the spinach and other leafy greens, from planting the seed to providing nutrients to the final packing.
Fifth Season does employ local “farm workers” to assist the robots in seeding, harvesting, packaging, quality assurance and control using computer software, but there is no human touch involved through it all.
“The first time someone ever touches the spinach leaf with a finger is when the package is opened,” says Grant Vandenbussche, chief category officer.
Co-founded by brothers Austin and Brac Webb and Austin Lawrence, Fifth Season started a year ago. Within months it was rolling out its baby spinach, leafy greens and salad kits.
“We wanted a name that represents what we are doing,” says Austin Webb, 32, who also is the CEO. “It is a call to the fact we have created an entirely new season. It is 24/7, 365 with the technology we have built.”
None of them planned to become modern farmers, says the Carnegie Mellon University grad, but they turned to vertical farming because it was an efficient, economically sustainable way to solve land and water woes.
‘Fields’ of Greens
Fifth Season grows an equivalent production of 200 acres in 25,000 square feet of grow space. Its “fields” are stacked on top of one another in vertical shelves. When you add up all that surface area of grow space, it is more like 126,000 square feet.
“We also quickly turn crops at the farm,” Mr. Vandenbussche says.
While spinach takes about 40 days to grow outdoors and can be harvested only twice during its peak season, it takes the crop only three or four weeks to grow in the controlled environment and is harvested 19 times. Once the plants are harvested, a new cycle of reseeding begins with fresh media, seeds and nutrients.
“That’s why we get so much more productivity,” he says. “We are immediately reseeding our ‘land.’”
This controlled environment yields quality produce because it is always peak season at Fifth Season, says Chris Cerveny, who heads the Grow R&D division. Greens are grown in the same conditions year-round, getting the exact amount of nutrients and water they need. Because pests and airborne toxins also are kept at bay, crops can be produced without pesticides.
All that TLC comes through in the slightly curled baby spinach, which is sweet and not grassy. The leaf doesn’t wilt or get slimy or lose its slight crunch even after two weeks of refrigeration.
A lot of thought was given even for the curl, which gives the spinach a stronger volume, making it look full and bountiful. The curl also makes the spinach more forkable unlike its flat-leaf counterpart that is hard to stab on a plate.
Other leafy greens such as kale, mustard, Chinese cabbage, green tatsoi and purple pac choi are featured in two blends — Bridge City and Three Rivers. Fifth Season plans to roll out its Romaine lettuce in spring.
The greens also are found in four types of salad kits — Sweet Grains (blended greens, quinoa, chickpeas, corn, feta and poppy seed dressing), Crunchy Sesame (blended greens, farro, sesame sticks, dried cranberries and ginger-mandarin dressing), Toasted Tuscan (spinach, lentils, sun-dried tomatoes, bagel chips and vinaigrette), and Spiced Southwest (blended greens, black beans, pepitas, cotija cheese, corn-salsa sticks and chipotle ranch dressing) — which are available online and in Giant Eagle stores. A fifth salad kit is in the works and is being called “a shakeup of one of the most classic salads.”
While machines are a big part of what Fifth Season does, it seeks to keep human connection alive. It recently launched a recipe blog for those who have an appetite for cooking and writing, The Green Room is devoted to cataloging personal memories, dream meals and recipes via short stories.
Fifth Season also has partnered with the Penguins and is providing greens for the team’s pregame meals for the 2020-21 season.
“We want people in Pittsburgh to be able to eat the exact same delicious blend of greens that Sidney Crosby and company are eating,” Mr. Webb says. “We want people to know that there’s a new way to grow food and to eat and experience it.”
It’s All Under Control
Everything from seeding to packaging is done in four rooms. The process starts in the seeding and processing room, where seeds and growing media are placed inside black planter-like boxes called inserts. Each has a unique code that’s traced by a software system. The inserts go on white trays that pass through a photo station, feeding information to the computer system, and then glide into the bio dome.
There are two rooms in the bio dome, each with a grow space of 12,500 square feet. They’re lit up with a pinkish-purplish glow from high-efficiency LED light bulbs that mimic the different seasons of the year.
“They are positioned over the plants at different heights depending on stage of growth,” Mr. Cerveny says. “This is partly how we can provide consistently ideal growing conditions.”
As the plants grow, they are moved by a robot to optimize their growth cycle. Full-grown crops are transferred to the harvesting room by another robot.
“Harvesting is where it becomes like a Willy Wonka factory,” Mr. Vandenbussche says.
Long rows of trays filled with tiny plants are sent on a conveyor system to a station where workers inspect them for quality with surgical tools. After inspection, the plants are harvested by a robot and then immediately ride up a tall conveyor to be packaged and sealed in a 34- to 36-degree room so they remain fresh.
“Every crop we grow gets evaluated for maximum flavor, volume, crunch and color,” he says.
The plants’ intense, dark color is controlled by LED light bulbs, which are dialed up or down to get the correct hue. Although they never see the sun, the greens don’t get into a funk as humans might.
“What humans see in terms of light and how chlorophyll responds during photosynthesis are two different things,” Mr. Cerveny says. “Plants really only need red and blue light to grow effectively. We include some additional colors to help bring out other quality aspects of our crops, but providing the full sunlight spectrum is effectively a waste of energy, especially indoors.
“To the human eye, it looks like the plants live in a land of purple and pink lights, but they are perfectly happy there.”
Even though the environment is controlled and the software system is constantly updated, no two plants are exactly the same. Some fight for light more than others. Some might fail the quality control test and end up in a compost waste facility if their flavor is off or their color is not right.
“That is what is so amazing. We have more control than any other farmer, and yet we have limitations. Every seed is different,” Mr. Vandenbussche says. “They are plants. They are real living organisms.”
Agritecture Partners With Harvest Returns Crowdfunding Platform To Modernize Urban Agriculture Financing
The two companies will work together to accelerate the urban farming and controlled environment agriculture (CEA) industry across the country by offering new entrepreneurs a more accessible way to raise capital. This type of farming can reduce the environmental impact of the food system and increase local food security
Fort Worth, Texas – Agritecture, LLC, an urban farming consulting and digital services firm, announced it has partnered with Harvest Returns, an agriculture investing platform.
The two companies will work together to accelerate the urban farming and controlled environment agriculture (CEA) industry across the country by offering new entrepreneurs a more accessible way to raise capital. This type of farming can reduce the environmental impact of the food system and increase local food security.
“The COVID-19 pandemic has revealed the fragility of centralized food production,” said Chris Rawley, CEO of Harvest Returns. “Developing additional indoor farms will distribute growing operations closer to where food is consumed, creating a more resilient food system.”
In 2020, the USDA offered the availability of only $3M in grants for urban agriculture and innovative production. Agritecture notes that the average CapEx, or startup cost, for controlled environment farms modeled via their Agritecture Designer digital platform is $512,000, and nearly one-third are over $1M.
“Since our founding in 2014, we’ve seen sustained, year-over-year growth in interest toward urban agriculture, especially amongst industry newcomers,” said Henry Gordon-Smith, Founder and CEO of Agritecture. This growth has only accelerated since the onset of the pandemic, according to the team at Agritecture, which reported nearly a 2x increase in website traffic since Q1 of 2020.
“Despite this increasing interest and the record levels of funding for the handful of indoor mega farms, financing continues to be one of the primary challenges for small and medium-scale CEA businesses,” Gordon-Smith notes. “Yet, we know these farms can achieve profitability with competitive payback periods, while still serving their local markets and communities.”
Gordon-Smith cites Agritecture’s 2019 and 2020 Global CEA Census Reports, produced alongside agtech solutions provider Autogrow, which show that nearly half of all CEA facilities are being started by those with no previous farming experience.
Furthermore, per their recent census, 78 percent of CEA business founders who attempted to raise money were unsuccessful in doing so through traditional financing sources, such as banks.
“By teaming up with Harvest Returns and their innovative financing platform, we can now deliver a direct link from our planning services and digital platform, Agritecture Designer, to funding opportunities for these smaller-scale facilities,” added Gordon-Smith.