November 25, 2019

Nov 25, 2019,

Scott Beyer Contributor

One key tenet of the “urban resilience” idea is local food production. If fruits, veggies, and herbs are grown in cities, they’ll reduce the runoff, emissions, perishability and transport costs of produce. They’ll also make cities more self-sustaining, rather than having to fully rely on food grown elsewhere. 

The problem is that urban agriculture doesn’t always seem like a practical concept. Urban land is expensive, and the prospect of making it farmland - even in distressed cities - could present long-term opportunity costs if these cities later revive. Furthermore, the vertical farming idea - where structures are built to grow produce at large scales - seems premature, since this brick-and-mortar infrastructure must compete with cheap, horizontal farmland. As fellow Forbes contributor Erik Kobayashi-Solomon writes, vertical farming is still a largely untested concept that receives limited capital compared to standard farming. 

An urban agriculture technique that seems more practical, though, is micro-farming, which involves fitting small farms into tight spaces, sometimes ad hoc. The website Lexicon of Food defines micro-farming as “small-scale farming that takes place in urban or suburban areas, usually on less than 5 acres of land.”

Modular micro-farming is a subset within this niche, using small, automated modular food-growing equipment, often contained within a few square feet. Modular farms are easier to use and possibly more scalable, since they can fit into almost any home or apartment. 

One example of this modular approach is Babylon Micro-Farms, a startup based in my hometown of Charlottesville, VA. The company sells 32” x 66” x 96” tall machines that use controlled environment hydroponics to grow leafy greens, herbs, and edible flowers. The farms don’t have soil, sunlight or standard seeds. Instead, Babylon places seed pods onto its trays. Depending on the seed variety (Babylon has 227 of them), the machines use remotely-managed equipment to cast the appropriate water and light. This causes produce to generate significantly more per-acre yield than standard farms. Babylon’s 15sqft micro-farms are capable of producing as much produce as 2000 sqft of outdoor farmland. 

These modular farms can be connected together to create indoor farms of different scales that can work within existing buildings. Their operations are remotely managed via the cloud with real-time data collection on all aspects of the growing environment.  This is an exciting development in a space that has remained out of reach for businesses and consumers due to high capital costs and complex technology with a steep learning curve.

Babylon sells these machines the way some green energy companies sell solar panels. Customers agree to a minimum 2-year lease, paying a fixed monthly fee. Babylon installs the machines, provides a subscription of growing supplies, and remotely manages the crop growth via the cloud using a proprietary software platform. This lets customers enjoy the produce without needing a “green thumb or any real expertise,” says Alexander Olesen.

Olesen co-founded the company with Graham Smith, when they were at the University of Virginia and participating in the iLab Accelerator at Darden School of Business. They incorporated in 2017, and now work in a small warehouse-style space near downtown Charlottesville. Babylon has 14 employees and $3 million in seed funding, including a grant from the National Science Foundation, and venture capital from Virginia, Washington, DC and Silicon Valley. They have dedicated these first couple years to building and testing the product, landing a few early clients for feedback. These include UVA, Dominion Energy, and some local restaurants, schools and country clubs. 

But their ambitions go well beyond central Virginia. Olesen said the first major act of scaling is currently underway, with Babylon installing their farms in major corporate restaurants, cafeterias, resort hotels, and grocery stores. Because such institutions thrive on b-to-c relations, they would benefit from the experiential component of a modular farm. Rather than just saying they use organic food, they can show customers where and how it’s being grown.

“This has the additional value of being able to show your customers that you care about those things,” said Smith. “If it’s growing 10 feet from the table, that’s pretty clear.”

Babylon believes that their technology can increase the biodiversity of produce available to consumers in urban areas, so they place a lot of emphasis on the underlying plant science required to grow crops using their machines. 

“One of the most exciting things about hydroponics is the amount of blue ocean space, it’s theoretically possible to grow any plant this way, yet only a handful of crops have successfully been commercialized,” said Olesen. 

Babylon has a controlled environment test facility in Charlottesville where plant scientists run trials on seed varieties from around the world, dialing in tailored growth recipes to produce higher yields and consistent flavors. Their technology consists of an array of sensors and utilizes camera vision to create an automated feedback loop that analyzes the data to increase the rate at which growth recipes can be developed. In doing so, they plan to learn how to grow heirloom crop varieties and reintroduce them to the supply chain, leading to more options for chefs and consumers alike. 

In the long run, Babylon plans to use their modular vertical farming platform to build larger farms capable of growing the majority of fresh produce for their clients. They envision micro-farming becoming an amenity in urban areas located in, or adjacent to, all grocery stores, foodservice operations, and food distribution hubs. These companies now get their supply from different farms nationwide, then process, package and sell it to consumers. The benefit to them of growing it onsite would be to significantly reduce perishability, which now wipes out 50% of food, much of it during the transport process, which can be over 1500 miles from farm to fork in the U.S. Not to mention the emissions generated by such a long supply chain. 

“Initially, we’re focused strictly on the b-to-b market, and utilizing these farms to grow food for companies with a known means of consumption or distribution,” said Olesen, while walking me through the facilities. “The next step…is creating these farms as a means for people to sell.”

This latter vision makes modular micro-farming seem like a viable future urban food source. Land owners in dense cities struggle to find the right surface lots to convert into vertical or horizontal farms. But Babylon’s 15sqft machine provides an adaptable solution that can work with existing infrastructure by slotting into unused space throughout urban areas. 

Other companies have, for this reason, embraced small modular micro-farming. Ones like Cityblooms and Zipgrow focus on slightly larger, more commercialized modular units. However, small scale urban farms have faced a scalability issue; the technology that is commercially available only allows for basic automation, but lacks any feedback that would enable these farms to learn how to operate more efficiently. The most direct competitor to Babylon is InFarm, a Berlin-based startup that operates in Europe. They have created a system similar to Babylon’s, which has gathered momentum with installations in grocery stores across Europe. It’s an exciting prospect to think of indoor farms in grocery stores here in the U.S. 

If any or all of these companies can make modular micro-farms a standard provider of fresh produce, it has the potential to disrupt the current supply chain - from manufacturers down to individual households. It would be an environmentally-friendly way to increase crop yields, reduce emissions, and feed people in the future. If it becomes a city phenomenon, in particular, it could be key to improving urban resilience across the U.S.

Follow me on Twitter. Check out my website.

Scott Beyer

I am the owner of a media company called The Market Urbanism Report. It is meant to advance free-market policy ideas in cities. The Report features multiple articles daily, along with a video series that explains urban issues from street level. I’m also a roving urban affairs journalist who writes columns for Forbes, Governing Magazine and HousingOnline.com. For three years, I'm circling America to live for a month each in 30 cities, starting from Miami and ending in New York City. The point is to write a book about revitalizing cities through this Market Urbanism concept. But my articles cover other city subjects too. I have also written for the Wall Street Journal, Atlantic, American Interest and National Review. You can find my work at MarketUrbanismReport.com.