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USDA Announces Grants For Urban Agriculture And Innovative Production
The U.S. Department of Agriculture recently announced the availability of up to US$4 million for grants to further support urban farming entrepreneurs and businesses looking to innovate.
Editor’s note: The following information is derived from an interview Agritecture conducted with Leslie Glover of the USDA Natural Resources Conservation Service Office of Urban Agriculture and Innovative Production. Read the USDA's News Release to learn more about the grants, or reach out directly to urbanagriculture@usda.gov with any application-related questions. Apply here!
Supporting Innovation In Urban Agriculture
The U.S. Department of Agriculture (USDA) recently announced the availability of up to US$4 million for grants to further support urban farming entrepreneurs and businesses looking to innovate.
“The number of individuals, groups, and community organizations seeking to build stronger local food systems is growing. It is encouraging to see the USDA continue to provide financial support to city stakeholders as applicants around the country aim to improve their communities through urban agriculture.”
— JEFFREY LANDAU, AGRITECTURE’S DIRECTOR OF BUSINESS DEVELOPMENT
Considering that over 6.7 billion people are projected to live in urban areas by 2050, these grants are essential to ensuring greater food security in the urban context and helping support food justice and equity. This enables farmers to better educate and unify communities to improve the locals’ overall health and permit them greater nutritional access.
As part of the USDA Natural Resources Conservation Service Office of Urban Agriculture and Innovative Production, Leslie Glover comments that “the purpose of UAIP competitive grants are to support the development of urban agriculture and innovative production activities by funding planning projects and implementation projects. Planning projects may be designed to initiate or support projects in the early stages of development, while Implementation projects may be designed to accelerate existing and emerging models of urban, indoor, and other agricultural practices that serve multiple farmers or gardeners or improve access to local food in the target area(s).”
Who Is Eligible To Apply?
Awarded by the USDA’s Natural Resources Conservation Service, this grant opportunity “is only eligible to nonprofit organizations, local or tribal governments, and any schools that serve any of the grades kindergarten through 12 in areas of the United States.”
More specifics on eligibility can be found in the Notice of Funding Opportunity (NFO), and supporting documents can be found here. Although seemingly limiting for non-eligible parties, Leslie adds that “non-eligible entities can be partners on a project” in order to benefit from this grant.
“This is a really great opportunity for for-profit businesses to partner with nonprofits to meet shared goals. For example, a school that wants to set up a small vertical farm as part of their science curriculum could apply for funds and partner with a local vertical farm operator for technical expertise. A city that is looking to promote various aspects of urban agriculture within its jurisdiction could be the lead and partner with a software designer to develop an online platform that helps facilitate the various aspects of urban agriculture that it wants to promote. The possibilities are endless, and for creative organizations, this is a golden opportunity.”
— DAVID CEASER, AGRITECTURE'S LEAD AGRONOMIST
Inspiring A Change
Previously awarded grants have seen great success in reshaping food production in built-up urban cities. Leslie shares that “last year’s grants were used in several ways from creating a citywide Agriculture Master Plan in New Haven, Connecticut, to providing fresh produce to food deserts and food insecure areas in targeted urban zip codes in Wichita and Sedgwick Counties in Kansas.”
VIEW MORE GRANT RECIPIENT PROJECTS
As for this new $4 million made available for grants this year, the USDA wants to continue inspiring and encouraging change. Leslie adds that “like last year, the goal is to serve communities in urban areas, suburbs, or urban clusters where access to fresh foods are limited or unavailable.” This is planned to be done “by leveraging collaboration, information sharing, and reporting on evidence-based impacts.”
If you’re interested in applying, reach out to Agritecture to be a supportive partner and strengthen your application! With our 10+ years of experience in local food systems planning, and our portfolio of 130+ clients in over 50 cities, our team of agricultural experts can help you make the strongest application.
Pure Harvest Is Not Just A Vertical Farm, But A ‘Veridical’ One, Says CEO
With desert making up the vast majority of its land – and most of the rest taken up by urban development – it’s easy to see why the UAE imports as much as 90% of its food from abroad. Just 5% of the country is considered cultivable
May 7, 2021
With desert making up the vast majority of its land – and most of the rest taken up by urban development – it’s easy to see why the UAE imports as much as 90% of its food from abroad. Just 5% of the country is considered cultivable.
The story is the same across much of the arid Middle East. But with the emergence and continued improvement of technologies in areas like indoor farming, irrigation, and water desalination, the region is beginning to contemplate a future in which it no longer relies as desperately on imports from more temperate, fecund climes.
While they’re short on arable land, something that the UAE and several of its neighbors do have in abundance is the money needed to invest in these technologies – or bring them in from overseas.
Pure Harvest “grows 26 commercial varieties of tomatoes, including six that have never before been seen,” according to CEO Sky Kurtz. Image credit: Pure Harvest Smart Farms
In 2019, the government of UAE constituent Abu Dhabi committed $272 million in financing and tax incentives to the development of a local agtech ecosystem. In April last year, the emirate’s Abu Dhabi Investment Office pumped $100 million of grant funding into startups including local controlled environment agriculture (CEA) grower Pure Harvest Smart Farms, with the startups sharing in a further $41 million injection last December. Also in April 2020, nearby Kuwait invested $10 million in Pure Harvest to bring the company’s desert-customized smart farming solutions to its own shores.
In March this year, Pure Harvest announced that it had closed a $60 million growth funding round, including a $50 million sharia-compliant, structured sukuk financing led by SHUAA Capital and anchored by Franklin Templeton. Sancta Capital made a “sizable” investment in the round, the startup said at the time.
AFN recently interviewed Pure Harvest founder and CEO Sky Kurtz about the company’s funding frenzy, its plans for expansion in the Middle East and beyond, and how it has managed to grow ‘green gold’ in the desert. Read on to hear more from Kurtz.
AFN: Pure Harvest recently raised $60 million in growth funding. How will Pure Harvest use this capital?
SK: This complements our earlier $29.3 million Series A capital to fund capital expenditures that will complete three new high-tech hybrid greenhouse projects, including two in the UAE and a beachhead in Saudi Arabia. The two farms in the UAE are nearly complete and will harvest late-Q2, while the Saudi Arabian farm is to be completed by Q3 and harvesting in Q4.
[We’re also making] additions to headcount, including key functions that further our capabilities, such as data science, machine learning, agronomists with specializations in new crops such as leafy greens and berries, and other high-skilled personnel.
The funding complements sizable R&D incentives received from the Abu Dhabi Investment Office to fund and further develop pilots of new technologies, enhancements to our climate control systems, and product development of new tools, equipment, and sub-systems that will improve the efficiency of our production systems.
AFN: What makes Pure Harvest different from competing indoor farming players in the market
SK: Pure Harvest Smart Farms designs, constructs, and operates high-tech growing systems equipped with proprietary climate management technology to enable year-round production of local, affordable, premium-quality fresh fruits and vegetables in the world’s harshest climates. We are also committed to supporting public initiatives focused on improved food security, water conservation, economic diversification, and sustainability. Through constant engagement with governments, schools, and research institutions, we believe that together, we can lead the Middle East into the next generation of sustainable agriculture.
Our representative differentiators are our proprietary climate management system design and system integration. We buy what we can build what we must. This is heavily informed by data from nearly three years of continuous production and operation in the UAE’s extreme heat and humidity. This is an extreme laboratory and we have unmatched insight into how to design systems to operate here and how to actually grow in this environment.
We have an exclusive design and IP [intellectual property] partnership with Larssen Greenhouse Consulting. [Its CEO Thomas Larssen] is a world-leading design consultant to the high-tech horticulture industry with over 30 years of experience and 1,000 successful projects worldwide. We co-develop designs and solutions; however, Pure Harvest maintains the IP. Thomas Larssen also serves as a director on our board and is a significant investor in the company.
We have regionally exclusive technology licenses with certain sub-suppliers that supply equipment or solutions that we deem to be head-and-shoulders above comparable solutions providers. With these partners we enter mutually exclusive relationships for [our] markets [and collaborate on R&D] efforts to modify their solutions for extreme climates.
We leverage our incumbency [in terms of] data, knowledge, and learning curves to both inform our future designs and procurements, but also to train agronomists. We can deploy them into existing assets within the extreme environment to train them before inserting them into new farms, benefiting from our institutional know-how and de-risking new projects and new market entry.
AFN: What differentiates Pure Harvest from a tech perspective?
SK: The technologies being utilized in Pure Harvest’s growing systems differ from existing systems used by growers in the Gulf region and abroad. Pure Harvest’s solution features an overpressure climate control system that not only serves to maintain the most optimal growing conditions but also helps to keep insects and diseases from breaching the growing area.
As pressurized air escapes from the rooftop vents [it] resists entry from particles and insects. This is a first-of-its-kind in the Gulf region but indeed exists in other parts of the world.
We also recapture condensation water created by our system to ‘create’ water, reducing our reliance upon groundwater and municipal water.
To maximize yields, carbon dioxide dosing is injected into the greenhouse which stimulates the photosynthesis process. Advanced hydroponic irrigation systems recirculate 100% of excess water, while sensors and advanced data analytics provide climate management. Many of these solutions are used in the Netherlands or the US, but are truly novel for the markets that we serve.
AFN: Are Pure Harvest products already available on general sale to the consumer? At what price point?
SK: Pure Harvest products are found in some of the most respected and far-reaching retailers in the Middle East — such as Spinneys, Waitrose, and Carrefour — as well as numerous reputable hotels and restaurants in the UAE. The company currently grows 26 commercial varieties of tomatoes — including six that have never before been seen — and six varieties of strawberries. Leafy greens, baby spinach, and much larger production of strawberries are coming by mid-year.
By early next year, upon completion of the company’s Kuwaiti facility, the product portfolio will broaden even further, including raspberries, blackberries, additional vine crops, and additional lettuces.
Pure Harvest’s products are typically at 20% to 40% lower cost versus comparable quality European imports, but a modest premium to lower cost, lower quality, seasonal regional production. We’ve created a new ‘premium local’ category that did not exist in our markets previously.
AFN: Can you explain what a structured sukuk financing is and why it was necessary in this instance?
Sukuks are a novel financial product whose terms and structures comply with Islamic [sharia] law, with the intention of creating risks and returns similar to those of conventional fixed-income instruments like loans or bonds.
Unlike a conventional bond, which represents the ‘debt’ obligation of the issuer, a sukuk technically represents an interest in an underlying funding arrangement structured according to sharia law, entitling the holder to a proportionate share of the returns generated by such arrangement and, at a defined future date, the return of the capital. It’s more like a sale-leaseback transaction, resulting in ‘profits’ being generated from leasing the property, plant, and equipment as opposed to ‘interest’ on capital, which is not permitted in Islam.
For a corporation tapping the sukuk market, there is a potential marketing benefit for issuers active in Islamic markets, if they are seeking investments in those markets. The investor base represented by sharia-compliant investors is still largely untapped and there has traditionally been significant unmet demand for products.
AFN: What is the biggest challenge that Pure Harvest has faced so far – and how has the team overcome that challenge?
The early challenge was securing capital – to convince investors to believe this was possible in unprecedented markets due to the extreme climate + deploying ‘unproven’ assets in an emerging market.
We have now raised approximately $45 million from the US, Asia, Europe, and the Middle East over the past four years. To do so has taken significant time, energy, and conviction in our vision. The GCC [Gulf Cooperation Council] region is a relatively new venture market with a limited number of venture investors, with smaller ticket sizes. We are pioneering agtech in an asset-intensive sector within an emerging market – it’s very, very hard being first. Now that we have proven our solution and our product-market fit, we are able to tap more established institutional investors and capital markets. Early on, however, there were no successful reference cases or analogs to point to. We entered truly uncharted territory.
Now, we are that analog, which new competitors are pointing to when pitching to investors [as to why they] should trust them to enter the GCC markets.
I cannot underscore just how hard it has been to be first. Even with consumers, convincing them that a premium local offering could be better than European imports – it was previously thought impossible, and ‘local’ was looked down on rather than celebrated.
[Operationally] the most difficult issues to overcome in the region are related to heat and humidity during the long summer months, to be able to deliver European product standards to customers. Developing and integrating world-leading horticulture technology has helped us to overcome the challenges presented by the extreme climate.
AFN: Pure Harvest appears to have raised quite a substantial amount of funding to date. What is the total funding figure and how is it all being deployed? Is building indoor farms in the UAE and Saudi Arabia more capital intensive than, say, Europe or the US?
Total funding commitments secured exceeds $216 million, including a performance-contingent $100 million commitment from our Series A lead investor, Wafra International Investment Company. This also includes the sizeable, non-dilutive incentive package received from the Abu Dhabi Investment Office, the exact value of which we can’t disclose.
Our core use of proceeds is indeed capex. Building these high-tech, ultra-high productivity farms is expensive – but it works [because] we have tremendous amounts of sunlight. We are able to harness that light to deliver world-leading yields, which helps absorb that capital and results in a favorable — often much more favorable — unit cost of production versus similar high-tech growing systems in the US, Europe, and Australia, for instance.
We call our solution ‘veridical’ farming rather than ‘vertical’ farming – ‘veridical’ meaning ‘truthful,’ or ‘realistic.’ We actually meet our claims to investors and to our customers, achieving about 10x to 15x the yield per square meter versus incumbent lower-tech CEA solutions while using a seventh to a tenth of the water.
AFN: What’s next for Pure Harvest?
We aim to be a regional leader in agribusiness in five years and to have expanded into at least two to three foreign markets, including within Southeast Asia. We will have advanced our solution to be 20% to 40% cheaper to build, build it in half the time, and deliver 20% to 40% greater output per unit of ‘light — that is, solar energy — that we can harvest. We will standardize our integrations with renewable infrastructure for our power and CO2 requirements, while utilizing treated wastewater in our cooling systems to reduce our environmental impact, and thus that of our customers when they buy our products.
The future of sustainable farming is here. We wish to serve the underserved billions who live within an eight-hour flight of Abu Dhabi and within 2,000 miles of the Equator, who have historically relied upon imports from other markets. Delivering to these nations is a true and tangible food security solution, and contributes to water conservation, economic diversification, and more sustainable, high-quality, safer, and tastier food.
Lead Photo: Pure Harvest founder and CEO Sky Kurtz. Image credit: Pure Harvest Smart Farms
Comment? News tip? Story idea? Email me at jack@agfunder.com or find me on LinkedIn and Twitter
Vertical Farming Startup Oishii Raises $50m In Series A Funding
“We aim to be the largest strawberry producer in the world, and this capital allows us to bring the best-tasting, healthiest berry to everyone.”
By Sian Yates
03/11/2021
Oishii, a vertical farming startup based in New Jersey, has raised $50 million during a Series A funding round led by Sparx Group’s Mirai Creation Fund II.
The funds will enable Oishii to open vertical strawberry farms in new markets, expand its flagship farm outside of Manhattan, and accelerate its investment in R&D.
“Our mission is to change the way we grow food. We set out to deliver exceptionally delicious and sustainable produce,” said Oishii CEO Hiroki Koga. “We started with the strawberry – a fruit that routinely tops the dirty dozen of most pesticide-riddled crops – as it has long been considered the ‘holy grail’ of vertical farming.”
“We aim to be the largest strawberry producer in the world, and this capital allows us to bring the best-tasting, healthiest berry to everyone. From there, we’ll quickly expand into new fruits and produce,” he added.
Oishii is already known for its innovative farming techniques that have enabled the company to “perfect the strawberry,” while its proprietary and first-of-its-kind pollination method is conducted naturally with bees.
The company’s vertical farms feature zero pesticides and produce ripe fruit all year round, using less water and land than traditional agricultural methods.
“Oishii is the farm of the future,” said Sparx Group president and Group CEO Shuhei Abe. “The cultivation and pollination techniques the company has developed set them well apart from the industry, positioning Oishii to quickly revolutionise agriculture as we know it.”
The company has raised a total of $55 million since its founding in 2016.
Founders Future: A New Fund For Impact Startups
The fund's particularly interested in vertical farming, circular economy, mobility and alternative packaging
The Fund's Particularly Interested In
Vertical Farming, Circular Economy,
Mobility, And Alternative Packaging.
BY FREYA PRATTY
15 FEBRUARY 2021
Founders Future, a French investment firm for European startups, is launching a new fund focused on supporting the next generation of impact-driven entrepreneurs.
MARC MENASÉ
Founding partner
The fund is the firm’s second and will focus on seed and Series A investments. It’s targeting a close of €50m and has raised €20m of that so far. Most of the money has come from angel investors, including Thierry Gillier, the founder of clothing brand Zadig and Voltaire; Bris and Yves Rocher, from the French cosmetics brand Rocher; and Michael Benabou.
The fund’s primary goal is finding impact-driven startups that show transformative potential, explains serial French tech entrepreneur Marc Menasé, who started Founders Future.
“Impact is everything now,” he says. “The consumer now wants to buy products that are more respectful across many criteria, and employees want to work for companies that take into account their impact on the planet and other ESG criteria.”
Founders Future is particularly interested in finding startups working on vertical farming, last-mile delivery, mental health, mobility, cleaner alternatives to packaging, and those working on the circular economy.
It’s a slightly different focus to the firm’s first fund, which looked to invest in the future of work, the future of banking, and the future of health. This included investments into French fintechs Lydia, Alma, October, and Memo Bank.
The food industry
Within the sectors Founders Future is now looking to fund, Menasé is particularly excited by startups looking to transform the food industry.
“I came to impact investing through the food transition,” he says, “and I’m super keen to fund projects in the food transition, I really have this in the gut — not meaning to make a joke there.”
One of the companies Menasé founded himself is Epicery, a delivery service for fresh grocery products, and he’s made investments in dark kitchen company Taster and Yuka, an app that tells you what’s in your food.
Founders Future also has a ‘venture studio’ within it to build new companies. The latest being created is focused on food — dietary supplement company Epycure.
Analyzing impact
Within its straight investment arm, Founders Future has developed a “highly structured way to invest”, Menasé says.
“We have new software called Zei which we use to assess businesses. Along with the founders, we plug in all the information we have about a startup and then we can share their impact trajectory, highlighting areas they need to improve on.”
The software could highlight that a company needs to change to a renewable energy supplier for its manufacturing process, for example, and that would be set as a target for a quarter.
“We want to back products that will make the 21st-century cleaner,” Menasé says. “Tech has incredible leverage in that and there’s a great younger generation of mission-driven entrepreneurs, we see real ambition for income in this group.”
Freya Pratty is Sifted’s news reporter. She tweets from @FPratty
Farmland Asset Class Holds Strong During Volatile Year; Learn More At Global AgInvesting Events
Global AgInvesting (GAI) will host the preeminent community of agriculture investment stakeholders at a special edition of its flagship U.S. gathering on 13-15 July 2021 at the prestigious Sleepy Hollow Country Club here, just an hour north of NYC
NEW YORK (January 29, 2021) – Global AgInvesting (GAI) will host the preeminent community of agriculture investment stakeholders at a special edition of its flagship U.S. gathering on 13-15 July 2021 at the prestigious Sleepy Hollow Country Club here, just an hour north of NYC. Uncompromising industry-leading content and networking opportunities will be presented in-person while providing extra precautions for safety at this all-outdoor event.
“Through an unprecedented year of challenges across all businesses, farmland investing stayed resilient and gained greater recognition from institutional investors,” said Kate Westfall, COO of GAI for HighQuest Group, the parent company of Global AgInvesting. “And our global GAI community did not waver in its commitment to advancements and investments in the burgeoning sector during a year of virtual events. We are, however, very excited about coming together again this summer in a unique and safe way.”
The conference agenda will provide insight into agriculture as an impact investment, key in on sustainable strategies in the sector such as opportunities in regenerative agriculture and carbon capture, and highlight the value of investing in the stability of ag, as evidenced by NCREIF, the National Council of Real Estate Investment Fiduciaries (NCREIF) Farmland Index, numbers.
For the first quarter of 2020, NCREIF cited total returns that were down -0.10 percent – the first negative total return for the Index in nearly 20 years. While this might not seem inspiring at first glance, when compared with other indices, it highlights the strength of farmland as an asset class. For example, the Dow Jones Industrial Average finished Q1 having fallen by more than 23 percent, the Russell 3000 Index fell by 20.9 percent for the quarter and the S&P 500 posted a total return for Q1 of -19.60 percent.
“These factors are not unnoticed by institutions who are increasingly focused on stability in their investment portfolios,” said Westfall. “As the food and ag community comes together to find sustainable solutions through ESG initiatives and a commitment to natural capital, we expect to see growing allocations to agriculture as an asset class. GAI will continue to be the source for unrivaled networking and education in the sector, both through our annual conferences and year-round webinars.”
The GAI Community also will gather later this year for Global AgInvesting Asia, 28-29 October in Tokyo, and Global AgInvesting Europe in London, 6-7 December.
Register here for Global AgInvesting in New York, or here for the latest complimentary webinar, or to view any of the nearly 20 previous webinars on topics such as carbon markets, investing in Australian agriculture, COVID-19 and the impact on the agricultural sector, supply chain disruptions and the latest Global AgInvesting Rankings & Trends Report.
Connect with us on LinkedIn, Twitter or Facebook.
# # #
Global AgInvesting, a brand of HighQuest Group, is the world’s most well attended agricultural investment conference series and leading resource for news and insight into the global agricultural sector. www.globalaginvesting.com
SCOTLAND: Vertical Farming Research Gets Government Funding
EFFORTS to develop vertical farming technology are to get a share in £90million of UK Government funding allocated as part of its drive to get agriculture to 'net zero' carbon emissions by 2040
January 7, 2012
Political Affairs Editor
Light Science Technologies works with growers involved in vertical farming to provide solutions for controlled environment agriculture
EFFORTS to develop vertical farming technology are to get a share in £90million of UK Government funding allocated as part of its drive to get agriculture to 'net zero' carbon emissions by 2040.
Derby-based company Light Science Technologies is one of just 23 feasibility projects which will benefit from this cash pot from the UK’s innovation agency, Innovate UK, as part of its 'Transforming Food Production' challenge.
In partnership with Nottingham Trent University, LST will be leading the project to develop a growing sensor and transmission node for vertical farms over the next six months.
It is hoped that this ‘all in one’ indoor farm sensor will enable farms to monitor and control their environment by measuring key areas including light, water, air, temperature, humidity, oxygen, and soil to ensure optimal plant productivity and yield.
CEO of LST, Simon Deacon, said: “This is an especially important boost to our business. To be selected by Innovate UK is confirmation of the urgent need for more sustainable, productive, and cost-effective solutions in farming. Investment in UK technology and innovation in this sector is crucial in achieving a better approach to agricultural production and reducing emissions.”
Innovate UK executive chair Dr. Ian Campbell added: “There are many innovative projects in our latest feasibility competition showcasing ideas for improving productivity and cutting emissions that range across the whole agricultural sector, from arable to livestock, to sensor technology, and to new biopesticides. Our funding and support for these projects is ongoing.”
May Indoor Science Cafe - Tuesday, May 26th, 11:00 AM EDT - How to Fund Your Indoor Farm
Indoor Ag Science Cafe is an open discussion forum, organized by Chieri Kubota (OSU), Erik Runkle (MSU), and Cary Mitchell (Purdue U.) supported by USDA SCRI grants
May Indoor Science Cafe
Please sign up!
Tuesday, May 26th, 11:00 AM EDT
How to Fund Your Indoor Farm
Presented by
Nicola Kerslake
(Contain Inc.)
Please sign up so that you will receive Zoom link info.
Indoor Ag Science Cafe is an open discussion forum, organized by Chieri Kubota (OSU), Erik Runkle (MSU), and Cary Mitchell (Purdue U.) supported by USDA SCRI grants.
Sign up for May 26th Cafe
USDA Launches Innovative Ag Office - Announces $3M Grants
Stay tuned for much more information on these grants in the coming weeks, and mark your calendars for a June 3, 2020 USDA webinar on the grant process
By Thomas Wheet and Brian Filipowich
The 2018 U.S. Farm Bill charged the USDA with creating the Office of Urban Agriculture and Innovative Production (“Urban Ag Office”). The Farm Bill noted that urban agriculture can “contribute to the revitalization of abandoned or underutilized urban land, [bring] social and economic benefits to urban communities, and [create] beneficial impacts on the urban landscape.”
After months of navigating the Congressional appropriations process, the necessary funding for the Urban Ag Office was finally signed into law in December 2019.
The Aquaponics Association reached out to the leadership of the Urban Ag Office and Congressional Offices to get a better understanding of the policies, funding opportunities, and timelines that will affect aquaponic growers.
Here is the Urban Ag Office’s Statement to the Aquaponics Association:
“Thank you for your interest in our efforts to stand up the Office of Urban Agriculture and Innovative Production. The Chief of the Natural Resources Conservation Service was delegated responsibility to implement the 2018 Farm Bill provisions on behalf of USDA and I have been designated as the Interim Director for the Office. We are working collaboratively with other USDA agencies to ensure they each have an equal voice in establishing the office, consistent with the 2018 Farm Bill provisions, and they are able to contribute in areas that fall within their respective missions and areas of expertise.
“As you are aware, the 2018 Farm Bill authorized $25 million annually for the Office. However, the Fiscal Year 2020 appropriation was capped at $5 million and limits the degree to which we can implement the authorized activities. We are moving forward with standing up the office and the external federal advisory committee that serves to provide recommendations to the Secretary, forging a path to establish the urban/suburban pilot county committees, and developing announcements for grants and agreements provided for in the Farm Bill.
“We are planning a series of webinars that will be announced soon that are designed to provide interested persons and stakeholders information about the establishment of the office and the functions we anticipate implementing. We will ensure we keep your contact information on file so you receive information about these webinars.
Then, yesterday, as we were about to publish this article, the USDA released a new, $3 million in grants for urban agriculture initiatives that will increase food access, agricultural education, and innovative production methods within urban environments. Stay tuned for much more information on these grants in the coming weeks, and mark your calendars for a June 3, 2020 USDA webinar on the grant process.
Click to see the USDA Press Release on the $3 Million Urban Ag Grants for more information and webinar registration.
Aquaponics is already taking the urban agriculture and controlled environmental agriculture industries by storm. While accounting for $19 million in 2020, the market is expected to climb to $46 million by the end of 2026 (that’s a CAGR of over 11.5%). This potential impact, however, could be greatly increased with federal guidance, funding, and business support that the Urban Ag Office is intended to provide.
The following list highlights several forms of support that the Aquaponics Association will continue to advocate for on behalf of the entire aquaponics industry:
Funding: Due to high startup costs, aquaponics can be unattainable for many individuals and/or communities looking to begin an operation. We will continue to advocate the new Office to support aquaponics initiatives with appropriate levels of funding needed to develop adequate systems that will lead to successful operations (both for non-profit and for-profit organizations).
Clarity surrounding policies: Though widely understood as beneficial, aquaponics falls within an agricultural ‘no-mans-land’ surrounding guidelines at the local, state, and federal level. This grey-area is partially because aquaculture, food crops, and other crops all fall under different regulatory regimes. Basically the big bureaucracy gets confused and can’t function, like a deer in the headlights. Whether in regards to food safety, greenhouse sterility, organic certification, etc., the Aquaponics Association will promote policies that match the operational realities faced by aquaponic growers across the country.
Defining value: Beyond the monetary value surrounding the produce and protein sustainably grown in aquaponic operations, there are numerous social benefits to localizing food production in urban spaces. From local job creation and educational opportunities about agriculture/nutrition, to decreasing municipal carbon footprints associated with the traditional agricultural system, the Aquaponics Association will work to ensure that Congress and the USDA fully grasp the true value of aquaponic growing.
Abu Dhabi Investment Office Announces Funding For LED Vertical Farm R&D
AeroFarms, Madar Farms, RNZ, and Responsive Drip Irrigation will receive AgTech-centric funding to further develop vertical farming techniques that can help feed the UAE region
AeroFarms, Madar Farms, RNZ, and Responsive Drip Irrigation will receive AgTech-centric funding to further develop vertical farming techniques that can help feed the UAE region.
Investment in LED-supported vertical farming begins to bloom in the UAE. (Photo credit: Image by Nattanan Kanchanaprat via Pixabay; used under a free license for commercial or noncommercial purposes.)
Apil 23, 2020
The Abu Dhabi Investment Office (ADIO) has announced $100 million in funding for what it calls “AgTech [agricultural technology] Pioneers,” each of which will build new research and/or growing facilities. The four recipients of the funding are AeroFarms, Madar Farms, RNZ, and Responsive Drip Irrigation (RDI), each of which will build new facilities in the Abu Dhabi emirate. The effort will leverage LED-based horticultural lighting and other technologies in an attempt to solve food supply issues in the UAE region and indeed around the globe.
AeroFarms, based in Newark, NJ, is a vertical farming specialist that we first encountered back in 2016. The company uses what it calls aeroponic technology to spray a mist of water and nutrients on the roots of plants. The company has been the beneficiary of other investment capital including $100 million from retailer Ikea’s investment fund.
In Abu Dhabi, AeroFarms will build a 90,000-ft2 facility that the company said will be the largest of its kind in the world. The company didn’t completely explain that statement, but we have noted of late that vertical farms come in different configurations. AeroFarms utilizes racks or shelves of plants stacked high, each with LED lighting directly over the cultivars. Others such as Plenty rely on plants grown in a vertical series of holes in a plastic pipe of sorts where water and nutrients flow top to bottom. Such a configuration has also been adopted by Freight Farms in shipping-container-based installations.
The UAE AeroFarms facility will grow commercial crops and serve in research. The company will focus on:
Advanced organoleptic research and precision phenotyping laboratory
Advanced seed breeding center
Phytochemical analysis laboratory
Machine vision and machine learning laboratory
Robotics, automation, and drones laboratory
“Our mission is to grow the best plants possible for the betterment of humanity, and this new cutting-edge R&D facility leverages our agriculture expertise and science-driven roots,” said David Rosenberg, co-founder, and CEO of AeroFarms. “We will be conducting leading research in plant science, vertical farming, and automation, accelerating innovation cycles and commercializing a diverse range of products. We will be partnering with major international companies, local universities, and AgTech startups to help solve some of the most pressing agriculture needs of our time, and AeroFarms is proud to play a pivotal role to help establish the Emirate of Abu Dhabi as a global hub for AgTech innovation.”
Tomatoes and microgreens
Moving to Madar Farms, months ago the company revealed plans to build an indoor LED-lit farm for tomatoes and microgreens in the Abu Dhabi industrial area near the port called Kizad. The grower will presumably turn to vertical farming techniques with tomatoes — an unusual choice. But we learned at our HortiCann Light + Tech Conference last year that cannabis yields have been shown to increase with shorter, more compact plants. Biomass has typically been the goal for both cultivars, which have traditionally been grown very tall — meaning they were not amenable to stacking in layers as they would in a vertical farm arrangement. However, the evaluated vertical farming techniques applied to those high-yield cannabis grow operations might produce similar results for tomato plants.
The remaining two firms will work more in an R&D capacity. RDI is perfecting a water delivery system designed to minimize water usage in sandy soils and on non-arable land. Meanwhile, RNZ, which is based in the region, will build a new R&D center hoping to increase yield.
Our HortiCann Light + Tech Conference is slated for Oct. 20, 2020, in San Jose, CA. Bruce Bugbee of Utah State University will deliver the keynote.
For up-to-the-minute LED and SSL updates, why not follow us on Twitter? You’ll find curated content and commentary, as well as information on industry events, webcasts, and surveys on our LinkedIn Company Page and our Facebook page.
India’s Answer To Vertical Farming Raises $5.5m Series A
India’s fresh produce industry has severe shortcomings. Bottom line: Not enough of it gets produced; nor can its consumers rely on its consistency or freshness
February 13, 2020
India’s fresh produce industry has severe shortcomings. Bottom line: Not enough of it gets produced; nor can its consumers rely on its consistency or freshness. For the producers themselves, getting their tomatoes or lettuce to market at a fair and timely price is fraught with financially hazardous uncertainty.
Does this all herald an opening for vertical farming in India’s vast urban and peri-urban areas? Not quite, says Omnivore’s managing director Mark Kahn, speaking to AFN by phone to disclose his firm’s latest investment deal: “Vertical farming is not especially relevant in India,” he said. “Land is plentiful and the cost of energy is very high.”
$5.5m for ‘India’s Plenty’
Nevertheless, he said, there is still a large and growing demand for more nutritious produce that has not been doused in chemicals and has been grown in a place not far from where it is consumed. There is also an urgent and substantial need for more climate resilience, Kahn noted. So India’s venture capital equivalent to North American indoor farms like Plenty, Bowery or Brightfarms, he concluded, is a company that galvanizes and coordinates the tens of thousands of already existing greenhouses dotted on the outskirts of India’s major cities.
That resulted in Kahn’s team at Omnivore jointly leading a $5.5 million in Series A into Clover — a greenhouse agritech platform, which partners with farmers across India with the aim of marketing premium quality, branded, greenhouse-grown fresh produce via B2B and B2C channels. Clover “is partnering with the asset owners that are largely disorganized right now. Then aggregating the high-quality produce,” said Kahn. Most of the greenhouse owners are smallholders with about an acre to work with — “not enough to make a brand,” he added. In his due diligence process, Kahn and his fellow investors saw how this platform boosted the yields, the quality, and the profit margins of fresh produce at participating greenhouses. “We visited all the farmers they were working with,” he said. “The farmers we spoke to were all making much more money. There’s a stickiness to the platform.” Consumers, meanwhile, seemed happy with the added reliability of the quality on offer.
Two towering existing investors
Fellow leaders of this round were two towering existing investors: Mayfield and Accel. Both had invested in Clover’s seed round back in December 2018 while the company was still in stealth mode in Bangalore, having been co-founded by Avinash BR, Gururaj Rao, Arvind Murali, and Santhosh Narasipura
“Clover is transforming the perishables supply chain to better serve the new-age Indian consumer who values high quality produce,” underscored Prashanth Prakash, a partner at Accel, which recently closed its sixth India fund on $550 million.
It is the first time, despite years of investing on similar turf, that Omnivore and Accel have been side by side on an investment round; the same goes for the joint presence Omnivore and Mayfield in an investor lineup — Mayfield has been investing in India since 2006 and cumulatively manages $219 million on the subcontinent. In a statement, Vikram Godse, a managing partner at Mayfield, gave his view on what drew in this gigantic Silicon Valley VC firm: “Clover operates in the highly-fragmented but large agriculture market of India. By using cutting edge technology, systems, and processes, the Clover team, led by Avinash, is disrupting the agriculture value chain for fruits and vegetables. This not only brings about economic benefits to Clover’s B2B customers but also ensures significantly improved quality of produce is delivered to the end B2C consumer.”
Any insights on greenhouses in India? Let us know at richard@agfunder.com
Freight Farms Announces New Horticultural Funding From Ospraie Ag Science
A Series B venture round of $15 million will allow Freight Farms to invest in plant science, add features to its software control platforms, and expand the customer base for its vertical farms housed in shipping containers
Mar 2nd, 2020
A Series B venture round of $15 million will allow Freight Farms to invest in plant science, add features to its software control platforms, and expand the customer base for its vertical farms housed in shipping containers.
Vertical-farm supplier Freight Farms has received $15M in Series B funding from investment first Ospraie Ag Science for its all-in-one, shipping-container-based agriculture model. (Photo credit: Image courtesy of Freight Farms.)
Shipping-container-based, vertical-farm manufacturer Freight Farms has announced that it received $15 million in Series B venture funding from investment firm Ospraie Ag Science. Freight Farms will use the investment to further optimize its Farmhand software platform, invest in plant science, and expand the customer base for its LED-lit Greenery container farms.
Freight Farms originally branded its container farms The Leafy Green Machine but has since simplified the product name to The Greenery. A Greenery farm includes everything a grower needs to launch a hydroponic farm all integrated into a shipping container. The outfitted Greenery container includes LED lighting, plumbing for nutrient supply, climate, and environmental control, and the Farmhand software to automate the operation of the farm.
The idea of a shipping container for a vertical farm is not a new one. For example, we covered a Dallas grocery store that uses a shipping-container farm to grow some produce right outside the store’s back door. And we covered a Los Angeles area farm using shipping containers right in the downtown metropolitan area back in 2016.
Freight Farms, however, brings unique aspects to its business both in the science behind Greenery and in the company’s business model. Taking the business model first, Freight Farms is specifically in the business of selling turnkey farms. Some other players have vacillated between selling technology and operating as growers.
The configuration of the Freight Farms product is also unique. When we first covered vertical farming back in 2016, the term was primarily utilized to describe growing operations where horizontal trays of plants were stacked in layers vertically to more fully utilize a space, especially for crops such as leafy greens and herbs where there is not much space needed between layers and where LEDs that don’t radiate heat can be placed in close proximity to the plant canopy.
We have since seen other concepts. Plenty, for example, is based in California’s Silicon Valley Area, has received more than 200 million in funding from well-known investors such as Amazon’s Jeff Bezos, and utilizes a system where plants are placed horizontally into the growing structure but run continuously in a vertical row from floor to ceiling.
Freight Farms partitions its systems in the close confines of the shipping container. There is a dedicated area where horizontal racks are used in the initial stages of sprouting. But later plants are transplanted into a vertical row structure where nutrients can drip from the top of each vertical row of plants and unused nutrient is recaptured at the bottom of each row.
Freight Farms said its 328-ft2 container can produce equivalent vegetables to a two-acre outdoor plot. And the container farm uses less than five gallons of water per day. For Freight Farms, the mission is solving the looming issue of feeding a growing global population. “With the Greenery and Farmhand, we’ve created an infrastructure that lowers the barrier of entry into food production, an industry that’s historically been difficult to get into,” said Jon Friedman, Freight Farms COO. “With this platform, we’re also able to harness and build upon a wider set of technologies including cloud IoT, automation, and machine learning, while enabling new developments in plant science for future generations.”
And make no mistake that controlled environment agriculture farming is becoming big business. We recently ran an article that discussed the investment capital coming into the market. Clearly, Ospraie sees an opportunity in the container concept. Freight Farms says it has sold farms into 44 states and 25 countries.
“Freight Farms has redefined vertical farming and made decentralizing the food system something that’s possible and meaningful right now, not in the future of food,” said Jason Mraz, president of Ospraie Ag Science. “Full traceability, high nutrition without herbicides and pesticides, year-round sourcing – these are elements that should be inherent to food sourcing. Freight Farms’ Greenery makes it possible to meet this burgeoning demand globally for campuses, hospitals, municipal institutions, and corporate businesses, while also enabling small business farmers to meet these demands themselves for their customers.”
New Date Announced For Women in Agribusiness Summit Europe: July 2-3
The jam-packed agenda will remain the same for the July event
PARIS, March 5, 2020 – A new date has been set for this year’s Women in Agribusiness Summit Europe: 2-3 July at Les Salons Hoche here. Previously scheduled for 9-10 March, the conference was rescheduled out of concern for the welfare of all participants with respect to the coronavirus.
Joy O’Shaughnessy, chief operating officer for HighQuest Group (parent company of WIA) and event director for Women in Agribusiness (WIA) initiatives, explained that while the decision was a difficult one to make, “due to an abundance of caution and concern for the welfare of all of our event participants in regard to the threat of the coronavirus, we felt it was best to postpone the event.” O’Shaughnessy conferred with sponsors, speakers, and attendees, as well as reviewing the recommendations from the World Health Organization, before announcing the postponement.
“We are grateful for the support and collaboration among our participants regarding this decision, and look forward to welcoming the Women in Agribusiness community to Paris in July where they can expect in-depth industry insight, detailed outlooks of the agri-food sector, and boundless opportunities for networking,” said O’Shaughnessy.
The jam-packed agenda will remain the same for the July event and include topics such as:
Geopolitical Overview of European Agriculture
Reforming the Agricultural System
Reducing Food Waste
Farming 4.0 - Ushering in the Age of Digital Agriculture
Green Funding: Critical or Counterproductive?
Agricultural Trade After Brexit
Executive Roundtable: A Spotlight on Senior-Level Women in Ag
The annual Women in Agribusiness Summit began in the U.S. in 2012 and is now renowned for annually convening close to 1,000 of the country’s female agribusiness decision-makers, with 30 percent at the CEO/executive level and another 25 percent at department management level. The European event is modeled after this successful series and includes the support of a community that engages 365 days a year via news blogs, social media, content for women-owned businesses, job opportunity postings, scholarships for young women, networking Meet Ups, leadership training and more.
Find out more about the Women in Agribusiness Summit Europe at womeninag.com, or follow us at @Womeninagri, on Facebook and LinkedIn. Register for the event with a 10% discount using promo code: PARIS2020. Additional sponsors and event partners are welcome for this event.
Farming 4.0 - Ushering in the Age of Digital Agriculture
Green Funding: Critical or Counterproductive?
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About Women in Agribusiness
Women in Agribusiness is a business unit of HighQuest Group, a global agribusiness consulting, events and media firm, based north of Boston, Mass., USA. The Women in Agribusiness initiative took root in 2012, with the first conference held in New Orleans. WIA initiatives have grown to include the WIA Membership, WIA Demeter Award of Excellence, Scholarships, and WIA Today. Learn more at womeninag.com.
CONTACT:
Michelle Pelletier Marshall
Senior PR/Media Manager
10 South Main Street, Suite 209 Topsfield, Mass. 01983 USA mmarshall@highquestgroup.com +1.978.790.0565
Discussing Green Funding At WIA Paris
Green Funding or Impact Investing is when lenders and investors make their decisions based on if the company in question has environmentally conscious business practices such as alternative energy, water, and waste management, or socially positive goals
Giving the Green Light to Green Funding
Green Funding or Impact Investing is when lenders and investors make their decisions based on if the company in question has environmentally conscious business practices such as alternative energy, water, and waste management, or socially positive goals. Companies like Danone and General Mills, as well as the major financial players in ag, are leading the path to responsible funding in the industry.
Green Funding: Critical or Counterproductive
We’ll be discussing how the practice of green funding is affecting the ag space. What are the current metrics being used to determine if a company is green enough, and how are they being tracked? On the flip side, will this practice make a positive impact or is it just an opportunity for companies to “green wash” themselves to get through the funding hoop? Join us to learn more!
Visit our website for more details
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Women in Agribusiness Summit Europe.
Thank you to our sponsors
An Analysis of Vertical Vegetable Farms
Until recently, vertical farms were an exception in the market, but now this high-tech agricultural sector is rapidly gaining ground in urban centers of Asia, North America, and Western Europe
"Huge Investments, Confident Markets, But Still Many Uncertainties"
Until recently, vertical farms were an exception in the market, but now this high-tech agricultural sector is rapidly gaining ground in urban centers of Asia, North America, and Western Europe. However, their economic viability and agronomic interest, compared to field crops or greenhouses, are far from established. Why, then, do some investors choose to follow this path of innovation? What, exactly, are the technical solutions required to produce in confined buildings, without natural sunlight? And, does this business model have future prospects?
The French Centre for Studies and Strategic Foresight, part of the Ministry of Agriculture and Food General Secretariat, published an analysis on the market.
Urban agriculture is now promoted as a vector of sustainable food, quality of life and community engagement. Most often, though, it consists of small-scale home and leisure activities: shared neighborhood gardens, potted crops on balconies or green
rooftops, etc. These “initiatives” are confined to a niche by the lack of land and the intermittence of citizen involvement. The artificial
environment of the city, with its soil and air pollution, building shadows, and impermeable pavement hinders any large-scale deployment of urban gardens. Thus, their contribution to the populations’ food supply seems doomed to remain marginal.
On the opposite side of the social and market spectrum is urban agriculture for industrial and production purposes, and more specifically on vertical farms. With advancements in LED lamps, robotics, and information technology, multi-level indoor production units with reduced footprints are being created, dedicated to the intensive cultivation of plants and vegetables, mostly salads.
Contrary to greenhouses, these high-tech farms do away with natural light and cut all dependance to their outside environment. This version of urban agriculture has strong ambitions: mass production of quality food products, at any time, under any climate, close to consumers, and without the use of pesticides, all at market prices.
Download the full analysis here
Publication date: Thu 7 Nov 2019
Contain Ready To Grow After Completing The Techstars Accelerator Program
Contain started from the ground up. It all began by talking to indoor farmers about their finance needs. Over the last 18 months, we met over 300 growers and developed a deep knowledge of what growers need when looking for finance
Nov 7, 2019
Contain started from the ground up. It all began by talking to indoor farmers about their finance needs. Over the last 18 months, we met over 300 growers and developed a deep knowledge of what growers need when looking for finance.
Once we had developed our expertise through first-hand knowledge and executing a number of leases, we recognized the need to grow what we learned from those conversations. It was time to take the next step as a start-up.
Here enters the Techstars accelerator program.
Last Spring, we pitched and were selected to participate in the Techstars’ Farm to Fork accelerator program, a program that provides ambitious tech startups with corporate mentorship and investment, backed by Cargill and Ecolab. Now, three months later, we’re ready to use the resources of the program to serve more clients, according to their needs. In other words, we’re growing (and we’re growing fast). We’re excited to share more about this exciting new stage in the company. Here’s what’s on the horizon for us.
We’re changing the way indoor farmers find financing.
The investment from Techstars gave us the opportunity to convert our knowledge into an automated leasing platform built for indoor growers. Our newly developed algorithms match indoor growers with the optimal lenders and provide growers with leasing options. And this platform isn’t just for farmers. It also includes specialized portals for equipment vendors and lenders.
We’re growing our mission.
The new platform sets the stage for rapid growth for Contain. It automates our process, and allow us to add hundreds of vendors and lenders to the platform. This in turn, will enable the success of thousands of growers. We’re already working hard to on board the numerous vendors and new lenders that now want to work with us.
Techstars’ Farm to Fork Demo Day
Our network is deeper than ever.
During our time in the accelerator, we developed valuable relationships with industry experts. We got to seek advice from leaders in the marketplace, financial services, and consumer packaged goods mega-corps. We worked with these mentors on everything from product development to marketing and fundraising strategies. As a Fintech company, we’re excited to work with the broader Techstars’ network in New York, Chicago and the Bay Area. We now have more relationships than ever to help us realize our vision.
The program has strengthened our team internally as well. The Contain team is a distributed one. Overall, this is a strength of the company; We see it as one of our advantages that we can accommodate our team members’ lives and still work with experienced and highly skilled folks. But that means that our headquarters is usually Slack, and we hang out with each other virtually most of the time. Being in one location for the summer gave us the opportunity to spend more time with one another in person and become more cohesive as a team.
But at the end of the day, it’s not just about the corporate connections or our team. It’s about the indoor farmers that inspire our work. Here is our CEO Nicola Kerslake, on what we learned while conducting interviews with some of the indoor growers we had worked with prior to the program.
“The greatest boost to the Contain team during the program was interviewing some of the indoor growers that we had worked with,” she said. Kerslake continues, “we realized that we had made a difference in the life of farmers and the communities that they support.”
For her, “It’s the best feeling to know that our hard work has a positive impact in the wider world.”
WRITTEN BY Nicola Kerslake
We’re Contain Inc. We use data to improve access to capital for indoor growers, those farming in warehouses, containers & greenhouses. https://www.contain.ag/
This Google Ventures-Backed Indoor Farming Startup Just Opened Its Biggest Farm Yet
The Baltimore farm is 3.5 times as large as Bowery’s formerly largest farm—and is the latest attempt to make indoor farming work as a way to disrupt the agricultural system
11.06.19
The Baltimore farm is 3.5 times as large as Bowery’s formerly largest farm—and is the latest attempt to make indoor farming work as a way to disrupt the agricultural system.
If you live in the U.S., the last time you ate a salad, the lettuce inside it almost certainly came from California or Arizona. But the geography of leafy greens is very slowly starting to change as the trend of indoor farming—growing greens in large warehouses using artificial light and automated technology—expands. The latest farm to open is in Baltimore. It’s the largest, so far, from the New York-based, tech-heavy startup Bowery.
[Photo: Bowery]
The company, which just announced that it raised another $50 million from investors, grows what it previously called “post-organic” produce in sprawling warehouses (it no longer uses the phrase, but the greens are grown without any pesticides). It’s one of a handful of startups trying to make a dent in some of the challenges of traditional agriculture. The industry isn’t moving as quickly as some predicted. Aerofarms, for example, said in 2015 that it hoped to build 25 farms over the next five years; so far, it has two large farms, an R&D farm and a small farm at a school. The same year, FarmedHere said that it planned to expand to 18 farms but went out of business two years later. Boston-based Fresh Box Farms said in 2017 that it planned to expand to 25 farms in five years but still has only one farm. Plenty, a Silicon Valley-based indoor farming startup that has raised $226 million, has one farm.
Bowery, which launched in 2015, opened its first farm in New Jersey in 2017, followed by another farm at the same location, roughly 30 times larger, in 2018. The new farm in Baltimore is around 3.5 times larger than the last (the company won’t disclose specific square footage). The company is ramping up operations in Baltimore this week and planting crops, with the first sales to begin at local retailers early next year. Like others, the startup also hasn’t moved quite as quickly as it has suggested—last year, it said that it planned to open multiple farms in new cities by the end of 2019, though the Baltimore farm will be the only one to open this year—but it offers evidence that the field is continuing to grow. Another large indoor farm, from Gotham Greens, will also open in Baltimore late this year inside a former steel mill. In Pittsburgh, a robot-run farm from another startup called Fifth Season is scaling up in an industrial neighborhood.
“We’ve been really measured and thoughtful at Bowery in the way that we’ve scaled and grown the business, and that’s not just the farms themselves but the development around our technology . . . I think that really is rooted in the recognition that the problem that we’re solving and the opportunity that we’re focusing on is a large one, and ultimately, we’re running a marathon, not a sprint,” says Bowery CEO Irving Fain.
If the business model can succeed, it could help farming become more sustainable. “When you look at the footprint of agriculture globally, it’s the largest consumer of resources in the world by a quite a wide margin,” says Fain. The majority of the world’s water is used for agriculture—often in places like California that struggle with frequent drought and where droughts will increase with climate change. Indoor growing systems can shrink water use by more than 95%.
Because the crops grow in a pristine environment, they also don’t require any pesticides, fungicides, or herbicides. (Growing inside a controlled environment also eliminates the risk of contaminated produce, such as an E. coli outbreak in conventionally grown lettuce in 2018 that made 210 people sick and left five people dead.) Bowery estimates that its system is 100 times more productive than a traditional farm on the same amount of land. And while indoor farming uses a significant amount of energy for climate control and lighting, the technology is becoming more efficient. “I think you’re going to see us really fulfill our energy needs with more and more renewable energy over time,” he says.
[Photo: Bowery]
Like others in the space, Bowery relies heavily on technology. The company uses a custom-built operating system to carefully monitor plants and automatically make changes to improve yield and quality. Cameras track plant growth. “That plant vision system is taking photos of our crops in real-time,” Fain says. “It runs those photos through deep learning algorithms that we’ve developed. It both analyzes and understands what’s happening with the crops today but also predicts what will happen to the crops in the future. And then all that data runs through other machine learning algorithms, which essentially say, these are the adjustments and tweaks and changes that we want to make to this crop.” The software also manages farmers, making it possible, he says, to hire people who have no previous experience in growing food.
As the company expands, it can use the data it has already collected to improve each new farm. “In essence, what we’re doing is we’re building this distributed network of farms, and every new farm comes online with the benefit of all the prior farms that have come before it,” says Fain. “And then that farm itself also is now contributing data into that network and strengthening the network itself. What that means is better produce, more efficiency, new taste and flavors, and new varieties, and all those things are sort of translating from the learning that we’re getting through the Bowery operating system and the systems themselves.”
All of this, he says, can happen at a cost-competitive with growing in the field. Right now, the company’s leafy greens sell through 100 retailers for around the same price as organically grown produce. Fain says that he expects the cost to eventually be at par with any produce. “When I started Bowery, one of the things that was really important to me was really ensuring that we could ultimately democratize access to high quality, fresh produce,” he says. “To get there, we had to be able to sell a product that was already competitive today . . . We’ve spent a lot of time really carefully and meticulously focusing on not only the way we run our farms but the systems inside of our farms, the automation, the technology and the software, and how that directly ties into the unit economics of the farms themselves. And so we can today be at or below field organic pricing with a very healthy economic model for our farms.”
ABOUT THE AUTHOR
Adele Peters is a staff writer at Fast Company who focuses on solutions to some of the world's largest problems, from climate change to homelessness. Previously, she worked with GOOD, BioLite, and the Sustainable Products and Solutions program at UC Berkeley, and contributed to the second edition of the bestselling book "Worldchanging: A User's Guide for the 21st Century."
[Photos: Bowery]
CropKing Pres. Paul Brentlinger On Ag’s Undervalued Human Element
Dan Brentlinger, the late founder of CropKing, knew he wanted to be an indoor grower as early as a sixth grade when he wrote an essay about his dream of pursuing horticulture. By that time, he was already growing strawberries in his basement. It took years for the industry to catch up to his ambitions
All images courtesy of CropKing and Paul Brentlinger
Dan Brentlinger, the late founder of CropKing, knew he wanted to be an indoor grower as early as a sixth grade when he wrote an essay about his dream of pursuing horticulture. By that time, he was already growing strawberries in his basement. It took years for the industry to catch up to his ambitions. He founded CropKing because he felt other indoor operators were offering poor products with even worse support for growers. Now, Paul, his son, is at the reigns, and we chatted about financing tips, the ag data revolution, and how the human element of agriculture is more vital than ever.
What is the biggest challenge in indoor ag right now, compared to when CropKing got started?
You fast forward 35 years [from the founding of CropKing] and the bigger challenge isn’t that nobody understands what hydroponics is, or what the benefits of controlled environment agriculture are, or why our food system isn’t working in its current state.
Now the bigger question is, how do you weed through all the garbage? As any industry matures, you’ve got the guys like CropKing or AmHydro, who have been around for almost 40 years. You don’t make it for 40 years if you’re not providing good products and good support. But now that CEA and hydroponics are somewhat mainstream, you’ve got everybody and their brother claiming to be experts and to have packages and tech support and quality supplies.
In the age of social media and mass information, how can growers make sure they’re getting reliable advice?
I would talk to as many people as I could that are doing what you’re doing. You’re not inventing something new. It doesn’t matter where you live, within a hundred miles of you, somebody is doing something very similar to what you want to do.
Find out who they went with, what made them successful, what do they not like about their process of getting set up. Get as much info as you can from going to seminars, going to trade shows. Meet with the people you’re going to buy your stuff from because those are the same people that are going to support you afterward, and if you don’t like ’em, find somebody else. If you don’t think you’re going to want to call these people weekly or daily in your first year, you’re going to have to find somebody else, because that’s realistically what you should be doing.
What’s CropKing’s signature approach?
Customer service. I’m not selling something that is extremely unique. It’s not, “You have to have this specific thing to succeed.” What you need to succeed is support, the ability to get through the problems, to not have a catastrophic failure, all of those things that, when you look at our ag space, crush people in their first year.
There is only a really small group of successful small businesses that last longer than 10 years. Well, if you look at the number of growers that CropKing has set up over the last 38 years, it would be safe to say that over 80% of them are still in business 10-to-15 years later.
What should new growers know about financing?
There’s a lot of entry points. The growers that Contain is more likely financing, and the growers that CropKing typically sells packages to, are relatively small commercial growers, typically less than an acre, most of the timeless than half an acre.
When it comes to financing these guys, they probably don’t have the agricultural experience that traditional banks are looking for to say, “We believe in ag, and you obviously have the skillset to make this successful.”
Our answer to that is a business plan model that we can help you put together that is very beneficial to the bank and being able to look at it and go, “OK, we understand what you’re accomplishing and how you’re going to be able to do this,” and you can then explain to the financier the support system that you have by going through CropKing. So we can help people navigate that.
In the end, though, if you’re not financeable, you’re not financeable. If you’ve got bad credit, or you don’t have substantial assets, or you’ve gone through two bankruptcies, there probably are not great options to get a loan to start a business.
Why work with Contain?
Even if you are financeable, an agriculture loan can still be more difficult to get than a traditional business loan. This is where Contain comes in, and I think, is starting to fill a niche, in that you guys are saying, “Hey, we know that if you, the grower, are going to buy from x, y, or z, you are more typically successful than not, so we’re willing to finance it, assuming it’s coming through these channels.”
There was clearly a missing section in finance as it relates to small commercial ag in controlled environments, and that’s what you guys are filling. I think it’s great. And you guys are first to market, but I think in the next five years you’ll see more similar models to what you guys do, and I think it’s awesome.
How does financing change based on grow size?
Financing of a less than half an acre and financing a two-acre are worlds different. If you are financeable and you’re trying to do something that’s less than a million dollars, you could probably accomplish that in the next four or six months if you’ve got your ducks in a row. If you are trying to do a two-acre project and you’re looking for financing, if you’re not anticipating 18 months from now, you’re really delusional. It’s just that long of a process to get this stuff together.
When you’re talking about building a two-acre facility, you’re talking about way more involvement with city officials and understanding what the look of this has to be and bringing in infrastructure and utilities and turn lanes and all that stuff that people who are building a two-bay, four-bay, half-acre greenhouse get away with by putting it in the back of their property and utilizing the wonderful world of ag exemptions.
What trends are you most excited about in indoor agriculture?
There’s the increased focus on data collection. It’s got pros and cons. A lot of people are looking at AI and data as a way to get to where it’s more of a process and an app, and we’re just setting programs. I don’t think we’re going to get to that level. I think the human aspect in growing is very key, and you’ll never work that out of a greenhouse. But the ability to have this data to make that human that much better is extremely valuable.
This conversation transcript has been lightly edited for length and clarity.
Learn more about Contain and funding your indoor ag business at our website, and subscribe to Inside The Box, our weekly newsletter.
Starbuck's Is Anchoring New Food And Tech Fund Valor Siren Ventures With $100M Investment
March 22, 2019
Starbucks announced it is making a $100 million investment in Valor Siren Ventures Fund (VSV), a newly launched venture fund that will back the next generation of food and retail technology startups.
In the coming months, VSV said that it is aiming to raise another $300 million from other outside investors.
“We believe that innovative ideas are fuel for the future, and we continue to build on this heritage inside our company across beverage, experiential retail, and our digital flywheel,” said Kevin Johnson, president and CEO, Starbucks.
Managed by Chicago-based Valor Equity Partners, a leading growth private equity investment firm that is a backer of Tesla and a long-time investor in food tech, this new fund will identify and invest in innovative companies that are developing new technologies, products, and solutions for the food and retail sectors.
Founded in 1995 by managing partner and CIO Antonio J. Gracias, Valor Equity is a previous investor in SpaceX, Tesla, Eatsa, Fooda, and Wow Bao, among others. And in July of last year, raised $1.05 billion for its Fund IV, bringing the total funds raised by the company, at the time, to more than $2 billion.
The fund also will act as an incubator for startups with which Starbucks can partner, and gives the company first-hand access to innovations that it can leverage to advance its own technology and retail platforms.
“At the same time, and with an eye toward accelerating our innovation agenda, we are inspired by, and want to support the creative, entrepreneurial businesses of tomorrow with whom we may explore commercial relationships down the road,” said Johnson. “This new partnership with Valor presents exciting opportunities, not only for these startups, but also for Starbucks, as we build an enduring company for decades to come.”
I Think We’ll Need a Bigger Wagon…
In recent years there has been a flurry of accelerators and venture capital arms launched by large CPG companies. This reflects the continued truth that there is a shift occurring within the food sector that is creating a scenario in which Big Food needs the rapid-response innovation generated by startups as much as startups need the capital available from Big Food.
The move to launch venture capital arms and accelerator programs or incubators has become a widely used method by some of the world’s largest and most conventional companies to achieve diversification, and to gain a foothold and to establish relevance in a swiftly changing consumer market. CPG companies also use these programs as a means to stay a step ahead of their competition while realizing the growth potential in disruptive food innovation.
Others that have come before include:
General Mills, which launched 301 Inc., in October 2015 – a venture capital arm that has gone on to outrank the likes of Time Warner and Merck for investment activity.
Campbell’s Soup, which launched its $125 million venture capital fund, Acre Venture Partners, in February 2016.
Anheuser-Busch, which partnered with Techstars to launch an accelerator in April 2016.
Danone, whose venture capital fund Danone Manifesto Ventures made its first investment in June 2016 in France’s Michel et Augustin, a producer of premium biscuits, dairy products, fresh desserts, and beverages.
Tyson, which launched its $150 million venture fund, Tyson New Ventures, in December 2016.
Kellogg’s, which launched its venture capital unit, eighteen94, in January 2017, making its first investment in Kui Kuli, a manufacturer and distributor of moringa-based bars, powders, and energy shots.
Barilla, which launched Blu1877, a hybrid venture capital fund and innovation hub, in November 2017.
Pepsi, whose PepsiCo HIVE made its first investment in Health Warrior, a producer of plant-based and superfood snacks and protein powders in October 2018.
And Mars, which announced the launch of Seeds of Change™, an early stage, food-focused accelerator, in March of this year.
At this point, an initial investment for the Valor Siren Ventures Fund has not been disclosed, however a company statement noted that Starbucks is “embracing new ideas and innovations that are relevant to Starbucks customers, inspiring to its partners, and meaningful to its business.”
Valor Equity CIO Antonio J. Gracias said, “as experienced investors in food and retail technology, we are thrilled to partner with Starbucks, one of the most iconic and forward-thinking global brands. Under our partner Jon Shulkin’s leadership, we are incredibly excited to partner with Starbucks to drive innovation in the food and retail industries.”
~ Lynda Kiernan
Lynda Kiernan is Editor with GAI Media and daily contributor to GAI News. If you would like to submit a contribution for consideration, please contact Ms. Kiernan at lkiernan@globalaginvesting.com.
Urban Farmer Turns to Crowdfunding to Support Growing Business
A loan would take too long to help, and when someone suggested crowdfunding, the urban farmer saw how much further that small business support could go.
By Sean Evans | January 10, 2019 at 5:04 PM EST - Updated January 10 at 6:50 PM
SAVANNAH, GA (WTOC) - Just blocks from busy Pennsylvania Avenue and not far from the heart of downtown Savannah, there’s a business venture you might not know about, or think could be that close to downtown. In fact, it’s growing so much that its loyal customers and folks who support them are chipping in to help them grow.
“I am the owner and sole employee of Vertu Farm," said Chris Molander.
Molander started Vertu Farm on Savannah’s east side about three years ago after cultivating a passion for farming in high school and college.
“When an opportunity opened up out here at the old dairy farm, I just jumped on it," Molander said, as he picked some of his crops from the ground.
On two acres of leased land, Molander’s farm has grown to provide Savannah’s residents with local greens, on sale at the Forsyth Park Farmer’s Market, as well as at some area restaurants.
“I can’t say enough about our Farmer’s Market. There’s a lot of really dedicated people that come out every single week to support the farmers," Molander said.
About a month ago, Molander realized he had an immediate need for greenhouse space. A loan would take too long to help, and when someone suggested crowdfunding, the urban farmer saw how much further that small business support could go.
“It’s literally past everything that I could have thought would even possibly happen, and all the responses, individual responses, people coming out here to talk to me, they’re just interested in the farm. They want to see it, they want to know more about it, and it’s just awesome," Molander admitted.
With four days left, the Indiegogo campaign goal is more than 90-percent complete.
Funds raised will help this local business owner complete his own greenhouse space, and keep Vertu Farms producing homegrown greens for Savannahians to enjoy.
What Bowery’s Latest Funding Round Says About Indoor Farming
The new investment round brings Bowery’s total funding to $117.5 million.
By
December 13, 2018
New Jersey-based indoor-farming startup Bowery announced yesterday that it has raised $90 million in fresh funding. The round was led by Alphabet Inc.’s GV with participation from Temasek and Almanac Ventures, General Catalyst and GGV Capital (Bowery’s Series A investors), and various seed investors.
Bowery produces what founder Irving Fain calls “post-organic produce.” Or to put it more plainly, Bowery produces leafy greens in an indoor environment it controls with proprietary software. The FarmOS system, as it’s called, helps farmers manage crops by collecting data about water flow, light levels, humidity, and other environmental factors that impact the taste of greens. And because the farm is indoors, Bowery can grow its crops without soil, pesticides, or chemicals.
This new investment round brings Bowery’s total funding to $117.5 million. That sounds like a lot until you compare it to Softbank’s $200 million investment in Bowery’s West Coast competitor Plenty, which took place in July of 2017.
Both companies’ raises illustrate the enormous amount of interest in indoor and vertical farming right now. The latter field is expected to have a market valuation of more than $13 billion by 2024, and there are dozens of other companies working on various iterations of indoor farming today.
AeroFarms grows leafy greens inside a 70,000-square-foot facility in New Jersey and has backing from IKEA and Momofuku’s David Chang. Crop One Holdings and Emirates Flight Catering are building what they call “the world’s largest vertical farm.” And Ford Motors operates a farm in Detroit that helps feed the homeless.
Okay, but will leafy greens really feed the homeless? Will butter lettuce and fresh basil help alleviate the global food shortage we’re expected to face as the population nears 9 billion people?
By itself, indoor farming can’t do either of those things, at least not adequately. But that doesn’t render indoor farming an overhyped segment. What it does mean, though, is that we need to start moving beyond the leafy greens and start producing foods with a little more substance. Plenty says cucumbers and strawberries are next on its list. Meanwhile, it’s possible to grow root vegetables like turnips, beets, and sweet potatoes using hydroponics. It’s just more expensive and more challenging than basil.
Bowery says its new capital will go towards “scale its operation in new cities across the country and open multiple farms by the end of 2019.” There’s no word yet on whether those new farms will stick to leafy greens or branch out, though Fain did say Bowery is working on “scalable solutions for an impending climate and food crisis.”
We’ll hopefully see Bowery put those words into action by figuring out how to widen the possibilities of what we can grow with indoor farming.