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Author: Produce Grower

Eric Stein

Balancing Tech and Automation in Controlled Environment Agriculture

Appropriate, Scalable Technology is the Missing Key to Profitable Vertical Farms

Produce Grower Vertical Thinking Column by Eric W. Stein, Ph.D., executive director at the Center of Excellence for Indoor Agriculture

Automation, robots, large language models (LLMs), sensor networks, IoT and AI dominate conversations today. The conventional wisdom is that tech equals innovation equals profits. But is that true? I would argue not necessarily.

Clayton Christensen painstakingly documented how one technology displaces another in his influential book, “The Innovator’s Dilemma” (1997). Examples include how flash memory displaced disk drives and inkjet printers displaced laser printers.

The conclusion? In most cases, simpler and cheaper technologies were the most disruptive to existing markets, not technologically superior ones. Why? Because high-tech often means more complexity, and more complexity means higher cost. Vertical farming has not fully learned this lesson and has been lured by the promise of adding tech.

What vertical farming needs is appropriate technology, not more technology. The concept of appropriate technology originated in Gandhi’s India in the 1930s. He advocated for small, local, low-tech solutions to help villages become self-reliant. This idea was fleshed out in E.F. Schumacher’s “Small Is Beautiful” (1973), in which he argues for technology that is appropriately scaled for human systems.

Put another way, indoor agriculture should not be defined by how much technology it uses, but by how it leverages appropriate technology to efficiently convert capital and energy into consistent, profitable yield.

The vertical farm technology trap

The problem with technology is that beyond a certain point, additional technological layers increase fragility faster than they increase performance. This is the trap that vertical farming finds itself in.

Read full column from Produce Grower

Produce Grower Stat of the week

Stat of the Week: CEA growers have embraced the snacking message

From Produce Grower magazine 

According to The Power of Produce 2025 report from FMI, The Food Industry Association, fruit drove 95% of dollar gains, while vegetables underperformed. Fruit added $2.8 billion in sales in 2025, with berries accounting for 32% of the new dollars. Representing 25% of all fruit sales, berry volume rose 7% year-over-year. While the report does not distinguish between field-grown and CEA-grown crops, these stats should register for indoor-grown producers.

When it comes to snacking, fresh fruit is prioritized over traditional snacks by 77% of financially secure consumers, compared with 55% of those who are struggling financially. CEA growers have embraced the snacking message with tomatoes (such as Lil’Ones from Wholesum), “midi bell” peppers (such as Prism from PanAmerican Seed) and mini cucumbers (such as Pop Its from Sunset).

Weighing sourcing location, time savings, production attributes and sustainable packaging, locally grown items have the highest draw to get people to spend a little more. And for CEA, the local story is often genuine and authentic in ways that field-grown and imported produce can’t match.

Read more from the report in Produce Grower’s May/June Cover Story.

keynote thursday Day 2 Keynote

From Produce Grower: 3 Takeaways From Indoor Ag-Con’s ‘The State of CEA Finance’ Keynote Panel

At Indoor Ag-Con 2026, Equilibrium’s Dave Chen and David Verbitsky of Verbitsky Capital reckoned with ‘mismatched’ investment partnerships in controlled environment agriculture, urging against venture capital geared more toward the tech industry.

From Produce Grower:

Day two of Indoor Ag-Con 2026 kicked off with another positive yet critical panel from Dave Chen, CEO of asset management firm Equilibrium, and David Verbitsky, president of Verbitsky Capital.

Interviewing each other, the two looked back on what they called “mismatched” investment partnerships that have plagued the CEA industry since its inception. Following suit with the previous day’s State of the Industry keynote panel, Chen and Verbitsky repeated a similar mantra: CEA is not a tech industry.

“We’re not expecting tech industry multiples; we’re expecting good margins and consistent growth from a farm that uses tech instead of acting as a tech company,” Chen said. “We need funding that understands and matches that.”

Here are three key takeaways from “The State of CEA Finance” panel.

1. Managing expectations

Chen and Verbitsky both agreed that venture capitalists often expect an unattainable return on investment.

“Avoid venture capital with a big growth expectation,” Verbitsky warned. “They’re not going to see things through because they’re looking for a different business model.”

“CEA is starting to understand it’s a tool, not a business model,” Chen added.

One solution to the mismatched capital problem: private equity.

According to Verbitsky, there has been growing interest from private investors, though he acknowledged an attendee’s concern that such investors can be volatile and prone to chasing trends.

Despite this, private equity can provide more flexible growth expectations, he said.

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Sensei Ag and Produce Grower

Sensei Ag Expands U.S. Greenhouse Network With 26-Acre Acquisition

From Produce Grower 

Sensei Ag recently acquired a 283,000-square-foot greenhouse and research facility on 26-acres of land in Lockhart, Texas. This strategic investment marks a significant milestone in the company’s plans to deliver fresh, greenhouse-grown produce to consumers across the United States.

“Texas has a rich, unique history in both agriculture and technology, making it a great choice for us,” said Dave Douglas, CEO at Sensei Ag.  “We look forward to being part of the local economy in Lockhart as an employer and producer of fresh produce.”

Construction is already underway, which includes an existing structure that will be outfitted with Sensei Ag’s proprietary growing technology. The upcoming facility is designed to grow leafy greens under the Sensei Farms brand, while optimizing resource efficiency and crop performance.

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AeroFarms

AeroFarms Faises Equity Financing for Expansion and Ongoing Operations

As reported in Produce Grower magazine: Indoor vertical farming company AeroFarms has refinanced its debt to support the ongoing operations at its farm in Danville, Virginia, and has raised equity financing to further support existing operations and fund pre-construction activities for its expansion to a second farm.

“Our vision is to provide local food production of nutritious microgreens to regions around the world while preserving natural resources,” said Molly Montgomery, executive chair and CEO of AeroFarms. “We have recently demonstrated that vertical farming can indeed be sustainable, profitable and produce fresh greens at scale. I would like to extend my gratitude to our financial partners who believe in our vision and have provided financing to support our operation in Danville and commencement of pre-construction activities for expansion to a second farm.”

Equity was provided by existing investors, including Grosvenor Food & AgTech (GFA), Ingka Investments, Cibus Capital and ACEG, among others.

Read full story from Produce Grower…