INDOOR VERTICAL FARMS: The Wave of the Future?
By Cory Lunde O n November 1, 2017, the National Organic Standards Board (NOSB) voted—by the narrowest of margins— to allow growers utilizing container, hydroponic or aquaponics production to keep their organic certification. While the NOSB is advisory in nature, with the staff of the National Organic Program and other USDA officials making the final call, this vote is significant in that it maintains the organic integrity of growing practices employed in many non-traditional, urban farming-type scenarios, including vertical farming. Vertical farming touts the use of vertical space—from the floor to ceilings that can be several stories high—to reduce inputs and increase outputs, leading to “more food per square foot of land.” Predictably, the indoor environment can be managed to yield year-round production. Indoors, out of the elements, the problems of pests and weeds can be virtually eliminated, with a corresponding near-elimination of the need for chemical applications. Water and nutrients can be applied and adjusted in controlled amounts at precise times. And portability—the ability to place vertical farms closer to population centers—lessens the carbon footprint generated getting food from field to fork. Although not without its growing pains—as evidenced by the spectacular failures of Atlanta-based Podponics and Chicago-established FarmedHere, once the largest vertical farm in the U.S.—what began as a niche segment of the agriculture industry has developed into a fast-evolving, increasingly viable method of production. Look no further than Plenty, a young Silicon Valley startup that is currently building a 100,000 square foot vertical farm outside of Seattle, WA, the first of what the company envisions to be many full-scale indoor farms near every major city in the world. Venture capital is paying attention, as Plenty has the backing of SoftBank, a tech-investment fund led by Japanese billionaire Masayoshi Son, and Bezos Expeditions (yes, as in Jeff Bezos of Amazon fame), who recently bet $200 million on Plenty’s global rollout plans. Plenty claims their indoor vertical farms can produce crops at yields far greater than traditional farms, citing the statistic that a 50,000 square-foot room—about the size of an acre—can
produce two million pounds of lettuce a year. They boast the ability to grow Whole Foods quality produce at Walmart prices, which makes the recent Amazon-Whole Foods connection even more intriguing. And they label their produce “super organics” or “beyond organics,” as there are no pesticides or chemicals used to grow their crops. Other players in the vertical farming game are also receiving big-time funding from big-time investors. For instance, New Jersey-based Bowery has raised more than $30 million from GGV Capital (formerly Google Ventures) and others. Another New Jersey startup, AeroFarms, has reeled in over $140 million from the likes of Goldman Sachs and Prudential. With all of the capital flowing into indoor vertical farming, should traditional farms be worried about increased competition in the marketplace? Yes, and no. But mostly no, according to Jim Pantaleo, general manager of Urban Produce, an upstart vertical farming company nestled amidst a maze of industrial and office buildings in the heart of Irvine, CA. On 1/8 th of an acre of space, Urban Produce can grow the equivalent of 16 acres of organic wheat grass, up to 10,000 pounds per month, which is supplied to a host of retail and foodservice companies, including a range of global cold-pressed juice clients.
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JANUARY | FEBRUARY 2018
Western Grower & Shipper | www.wga.com
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