With crops being grown indoors under controlled environments, a selling point used by multiple vertical farms is that they can grow crops anywhere – even in the heart of a city. This has led to proponents of the industry envisioning “smart cities”, where vertical farms in city skyscrapers help feed the urban population. While this is achievable in principle, the truth is that the choice of location for vertical farming is much more involved and intricate than it may appear from these claims alone. Choosing an ideal location can be one of the most important factors in determining the success of a vertical farm.

Some vertical farms may choose to set up their facilities in pre-existing facilities, such as abandoned warehouses. In these cases, identifying the suitability of the venue is the first point of consideration: vertical farms are very energy intensive, and it is important to ensure the facilities chosen can support these energy loads. In addition, the ergonomics of the facility is also important; should the layout not be given proper consideration, this can impede workers and decrease worker efficiency. As labor costs are typically among the largest sources of expenditure for a vertical farm, improving labor efficiency to reduce these costs is of paramount importance.

While growing crops in the center of a city may seem ideal, the reality is that this may be counterproductive. Obtaining and maintaining such a location is expensive and can contribute significantly to the operating expenditure of a vertical farm while presenting logistical challenges in distributing produce; the “last mile” of food distribution is often the hardest. Having a farm right next to the consumers themselves may also be less ideal than instead choosing a location near food distribution centers, as this allows for more efficient delivery of produce. As distribution centers are typically located on the outskirts of cities, the cost of land is also much cheaper. This is the approach chosen by UK-based Jones Food Company, which chose Scunthorpe as a location for its vertical farm – this is a relatively low-cost location located near food distribution centers and a network of motorways that can reach many consumers in a day, even if it isn’t right in the middle of the capital city. Vertical farms should carefully consider their place in the supply chain before establishing a base.

On a larger scale, vertical farms may prove more profitable in different geographical regions. Vertical farms can reduce water usage significantly over conventional agriculture, and the high degree of control over the growing environment allows them to grow crops in extreme climates – where such crops may otherwise be unable to grow. In return, vertical farms demand more energy to carry out growing operations. To maximize their potential, vertical farms would ideally be located in regions of water scarcity, such as Sub-Saharan Africa and the Middle East, or in areas with extreme climates, such as in Scandinavian countries, where the low amounts of sunlight and high costs of regulating greenhouse environments single out vertical farms as an optimal solution. The amount of agricultural land available is also an important factor – regions looking to increase food security and reduce reliance on imports while facing challenges in acquiring sufficient agricultural land would find vertical farms to be ideal. A particularly prominent example of such a country is Singapore, which has demonstrated much interest in vertical farming over the last few years.

Beyond the considerations of water scarcity and temperature, the general availability of fresh produce and the distribution networks of given countries should also be considered. Vertical farms use the added freshness and higher quality of their crops as a primary selling point, but these are typically offset by higher prices. Should there already be a large supply of high-quality produce available at lower costs, vertical farms will find it hard to distinguish their own produce and may struggle to establish a significant market share. The converse would also be true; should a country lack easy access to fresh produce, vertical farms are expected to see much demand for their produce. An example of such a region would be the Middle East: leafy greens typically travel several thousand miles to reach stores, resulting in consumers facing high prices and low-quality products. The high price of conventionally farmed leafy greens, alongside government subsidies, makes it easier for vertically farmed produce to approach price parity while providing much fresher, higher-quality products.

While the choice of location is an important consideration, it is only one of many others that must be given proper thought. Only through proper optimization of growing operations to improve efficiency and reduce costs can vertical farms reach their true potential. In the IDTechEx report, “Vertical Farming 2022-2032”, many further important factors for consideration are discussed in detail, and the future of vertical farming is evaluated through 10-year market forecasts.

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According to a recent Bloomberg report, AeroFarms will go public in a merger with Spring Valley Acquisition Corp. Thanks to the pending merger, the two companies will have a combined equity value of $1.2 billion. AeroFarms was co-founded by David Rosenberg, Ed Harwood, and Marc Oshima. Rosenberg now serves as the CEO. Harwood is the Chief Science Officer, and Oshima is the Chief Marketing Officer.

AeroFarms: An Explainer

How does AeroFarms achieve its aim of transforming agriculture? The company utilizes a technique called indoor vertical farming. The benefits of indoor vertical farming include reduced space which results in greater productivity per square foot.

AeroFarms says this method makes productivity per square foot 390 times more effective than traditional farming methods.

The indoor vertical farming method also, as AeroFarm purports, results in using 95% less water and zero pesticides. AeroFarms has a smart strategy for keeping plants healthy. This includes a combination of smart aeroponics, light, nutrition, data, substrate, pest management and scaling.

The AeroFarms method means that the agriculture involved is fully controlled by one entity. This allows AeroFarms complete control over every aspect of greens, herbs and more that they grow for clients.

From the size, color, shape and most importantly, the flavor, AeroFarms has complete control. Besides curating custom greens for food clients, AeroFarms also sells their own products at local retailers that are called Dream Greens. According to AeroFarms, Dream Greens are grown on indoor vertical AeroFarms locations in New Jersey. They are organic, pesticide-free, and non-GMO.

Potential clients can choose to use AeroFarms’ food service. The benefits of their customized food service includes year-round availability, a longer shelf life, consistent pricing, no weather interruptions, heirloom greens varieties and more.

More About AeroFarms

The AeroFarms technology was named one of TIME’S best food and drink inventions of 2019. Some of AeroFarms other financial partners include Ikea, Prudential, and Goldman Sachs. Rosenberg, who is also the CEO of AeroFarms said this about the upcoming merger and initial public offering via a Business Wire report.

“At AeroFarms, our mission is to grow the best plants possible for the betterment of humanity, and we are executing on this by taking agriculture to new heights with the latest in technology, innovation and understanding of plant science. Our technology empowers our operations – this is how we get closer to where the problems, opportunities and solutions are. We also have the capabilities to innovate fast by turning our crops a typical 26 times per year that allows us to continuously learn and improve yield and quality while simultaneously reducing capital and operating costs.”

After the merger is completed and closed, AeroFarms will be publicly traded on Nasdaq under the ticker ARFM. The official date for the AeroFarms IPO has yet to be confirmed.

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A plug-and-play farm

As do an increasing number of vertical farming systems on the market today, IGS’ platform is a so-called plug-and-play system, meaning the user interfaces with software which automates much of the grow process for a variety of crops. (Admittedly, it’s still mostly leafy greens at this point.) IGS’ patented, IoT-enabled system includes dynamic LEDs that can automatically adjust themselves to suit crop needs, trays that are loaded and moved by machines, and the ability to water and monitor crops via software — all with the press of a button.

Here’s the farm in action:

The farm, which is located just outside the coastal city of Dundee, is Scotland’s first vertical farm in operation. According to the press release, the new funds will go towards creating more jobs at IGS in areas like software development, robotics, engineering, and automation. Some of the funds will also go towards product development and marketing.

Many companies are bringing versions of the automated vertical farm to the fold. Earlier this year an Australian agtech company simply called Vertical Farming Systems raised $1 million for its automated indoor farm system. Liberty Produce, based in the U.K., has a “one-stop-shop” vertical farm which anyone can operate, even those without a technical or agricultural background.

Less guesswork and weather issues, hopefully

And that’s part of what’s at the center of these automated farming systems. By making it easier to plant, monitor, and harvest crops, vertical farming companies around the world are hoping to take some of the guesswork out of the process and in turn deliver more consistent crop yields and higher-quality greens, saving on time and labor costs in the process.

Because of current limitations around scalability and the kinds of crops farmers can grow at scale, vertical farming won’t replace traditional agriculture anytime soon, but automated farms like those from IGS will play an important role in the future of farming, and we’ll see a lot more systems like this in the near future.

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