Reinventing the Farm: How Transfarmation Is Turning Industrial Animal Operations into Indoor Opportunity
For many farmers, leaving industrial animal agriculture—often referred to as factory farming—isn’t about ideology; it’s about survival. Mounting debt, limited autonomy, and shrinking margins are forcing producers to rethink their future. As Director of The Transfarmation Project, Katherine Jernigan works directly with farmers to repurpose existing animal-ag infrastructure, identify viable specialty crops, and build plant-focused businesses that offer both economic stability and renewed control. In this Indoor Ag-Content Q&A, Katherine shares what sparks these transitions, how controlled environment agriculture fits into the equation, and why farmer-to-farmer solidarity is central to Transfarmation’s work.
Katherine, you work with farmers who are thinking about a major life and business pivot—moving away from industrial animal agriculture into plant-focused production. When a farmer first reaches out, what usually sparks that conversation, and how do you start shaping a transition plan that feels both realistic and hopeful for them?
When farmers first reach out, the conversations are almost always sparked by a deep sense of financial and emotional distress, alongside a critical lack of autonomy in their own operations. The industrial contract farming model traps farmers in a cycle of debt, known as the “debt treadmill,” which can take farmers decades to escape.
We work together to shape a realistic plan by focusing immediately on the practical aspects: we examine their existing infrastructure and geographic area to determine which specialty crops will actually sell in their region. We bring in technical consultants to help map out exactly what the conversion looks like, from construction costs to crop performance.
The hope comes from recognizing they’re no longer trying to tackle this in a silo, but as part of a broader, collective effort. Transfarmation is a farmer-led movement. We connect them directly with other farmers in our network who have successfully made the switch. There is immense power in that solidarity. Knowing they aren’t alone and being able to talk to someone who has walked this path before is often the most important tool we offer.
One of the most fascinating parts of Transfarmation’s work is reimagining existing barns and livestock facilities as indoor growing spaces. From your vantage point, what kinds of structures make farmers say, “Wait… this could actually work for CEA”? Any early “aha moments” you can share?
Part of the power of Transfarmation lies in its ability to see potential in spaces that others feel are single-use. In our early days, before we had physical examples of farmers transitioning their structures, people told us the buildings were useless liabilities–that we should tear them down and build from scratch. But we knew the expense farmers had put into building the structures and the additional expense that a teardown and rebuild would entail. We view the buildings as a blank canvas, and we are committed to repurposing and exploring viable options within a farmer’s budget.
Poultry and hog barns are actually perfect starting points for CEA, particularly for mushroom and greenhouse production. These facilities often already have some of the core components we’d look to install for a CEA system, such as climate control, utility connections, and, in the case of hog barns or dairy parlors, concrete floors similar to what you’d see in mushroom facilities. They are also very similar in structure across the country, so the solutions and infrastructure changes Transfarmation recommends are highly replicable.
One of our team’s favorite “aha” moments was working with the Hamilton family in Indiana. Paula is so brilliant that she not only retrofitted her dairy parlor, but she has also adapted equipment like the balk tank cooler to cultivate mushrooms. She manages the entire process of growing mushrooms, from spawn to creating her own substrate, to colonizing, fruiting, and processing. Paula really illustrates the ingenuity of farmers and their ability to creatively utilize the resources available to them.
At Indoor Ag-Con, you’ll be part of our Field to Future workshop, helping traditional farmers unpack the real costs, labor needs, and ROI of stepping into indoor ag. When you sit down with farmers exploring this shift, what tends to surprise them the most—and what support ends up mattering most as they weigh their options?
I think the biggest surprise is often the difference between the bottom line and the sheer labor involved. We know from the Census of Agriculture that the median income for contract poultry farmers has been less than $5,000 a year. When you run the numbers on high-value specialty crops like mushrooms, the return on investment can be significantly higher.
But beyond the finances, the major shift is in lifestyle and autonomy. You go from being on call 24/7 for livestock—where an integrator dictates your feed, schedule, and equipment upgrades—to managing a controlled environment where automation handles watering and climate. That shift frees farmers up to actually run their business. They get to decide who they sell to, whether that’s local families or regional distributors, rather than being locked into a single buyer who controls their entire operation.
Your fireside chat at the show spotlights a family in Iowa that turned a former hog operation into a specialty mushroom business. For people who haven’t heard the story yet, what about that transformation stands out to you? And what might indoor growers learn from farmers who’ve successfully reinvented their operations like this?
The Faaborgs’ story stands out because it illustrates a smart, risk-managed approach to a massive operational pivot. After 30 years in the hog industry, they were facing the common reality of high input costs and diminishing returns. When they transitioned in 2022, they didn’t try to convert the entire facility overnight.
Instead, they started with a pilot operation growing reishi, lion’s mane, and oyster mushrooms in a smaller setup to prove the concept before scaling up. For indoor growers, the lesson here is critical: you don’t have to do everything at once. You can build with intention, test your market, and expand as you succeed. Beyond the business case, they are also revitalizing their land by planting trees and pollinator plants. They even remediated their former cesspool, which had held hog waste, turning a pit of waste into a beautiful pond filled with fresh water. That is a transformation you have to see to believe!
You often talk about food systems in a way that blends sustainability, community, and new market opportunities. As you look at where Transfarmation is headed, what trends or partnerships excite you most—and where do you see CEA playing an even bigger role in helping farmers transition into resilient, plant-forward businesses?
We are entering a really exciting phase of scaling our impact. We are moving beyond one-on-one pilot projects and launching a new incubator program. This allows us to combine self-paced training with specialized technical consulting, enabling us to equip significantly more farmers with the actionable tools they need to grow thriving plant-focused businesses.
What excites me most is the solidarity we are building, bringing together what some might call ‘unlikely allies’. We are seeing farmers, environmental advocates, and policymakers come together to build the market channels and policy support sustainable farms need to thrive.
As for CEA, it is the game-changer for resilience. It offers a climate-smart way to stabilize production and income, regardless of the weather outside. Ultimately, CEA enables us to transform infrastructure that was once a burden on the farmer and the environment into a center of creation—growing healthy food and revitalizing the local rural economy.
Katherine will bring these perspectives to Indoor Ag-Con 2026, where she’ll participate in the Field to Future: Exploring Indoor Ag Opportunities for Traditional Field Farmers pre-conference workshop, speaking candidly about the business realities of cost, labor, and ROI when transitioning away from industrial animal agriculture. She’ll also take part in a fireside chat in the new Conventional Agriculture Track, spotlighting a real-world transformation of a former industrial hog operation into a specialty mushroom business. Together, these sessions offer a grounded look at how controlled environment agriculture can help farmers rethink existing infrastructure, reduce risk, and build resilient, plant-focused operations.
Learn more about The Transfarmation Project, www.thetransfarmationproject.org, p: 919.307.1819
