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Tag: supply chain

Scaling with Purpose: How Local Bounti Is Building a More Durable CEA Business

As Chief Commercial Officer of Local Bounti, Dane Almassy brings more than two decades of experience across consumer packaged goods, fresh food, and agriculture to one of the most closely watched companies in controlled environment agriculture. In this month’s Indoor Ag-Conversations Q&A, Almassy shares why he joined Local Bounti at a pivotal moment for the industry, how the company is approaching responsible, demand-driven growth, and what it takes to build a durable CEA business in today’s evolving market. Almassy will expand on these themes as a panelist on the opening morning keynote, CEA Alliance Insights on the State of the Industry, and in the breakout session Lettuce Without Limits: Scaling Responsibly in a Saturated Market at Indoor Ag-Con this February.

Local Bounti’s Stack & Flow® growing environment, designed to scale production in direct response to customer demand.
Local Bounti’s Stack & Flow® growing environment, designed to scale production in direct response to customer demand.

You joined Local Bounti at a pivotal moment for the company and the industry. What attracted you to this role, and what about Local Bounti’s approach made you feel this was the right time to step in?

I joined Local Bounti because I saw rare alignment between a bold mission—delivering the freshest, locally grown produce while drastically reducing food waste—and the proprietary technology to achieve our strategic vision of becoming the #1 player in CEA. Our Stack & Flow® technology is a true differentiator, allowing us to triple production in Georgia with higher yields, deliver superior quality, and extended shelf life that the market demands. What really excited me was the breadth of our portfolio—from Living Heads to Family Salad Kits—and our ability to pivot packaging to meet specific consumer needs. Backed by a strong investor base that understands responsible, sustainable scaling, the foundation is incredibly solid. But ultimately, the people sealed the deal. After meeting CEO Kathleen Valiasek and her team, I was blown away by the depth of talent and the ‘family’ culture they’ve built. What’s unique here at Local Bounti is the importance of our facility staff – we like to say we have an inverted organizational chart, where those folks on the front-lines are the most important employees of Local Bounti.  It is this empowerment at the facility level that has allowed us to make such great strides in productivity improvement.  That blend of intelligence and camaraderie fuels my passion every day and gives me confidence in our long-term success.

Dane Almassy with his son, volunteering with Grassroots Grocery in their hometown—reflecting the personal connection to food, family, and community that shapes his work at Local Bounti.
Dane Almassy with his son, volunteering with Grassroots Grocery in their hometown—reflecting the personal connection to food, family, and community that shapes his work at Local Bounti.

You’ve spent much of your career in consumer packaged goods and fresh food. Looking at indoor agriculture today, what feels familiar—and what feels fundamentally different—from the industries you’ve worked in before?

The fundamentals haven’t changed. Whether you’re selling a beverage or a salad kit, consumers still expect quality, consistency, and a brand they can trust. The same goes for our retail partners—on-time, in-full delivery with the highest quality remains the gold standard.  We see a long-term opportunity to reshape consumers’ perception of value in the produce aisle – we think we are delivering exceptional value in terms of product quality and as consumers come to better appreciate how this exceeds the status quo within conventionally-grown greens, we can drive greater volumes at attractive prices that will make this new era of CEA accessible to everyone.

But the ‘how’ is fundamentally different. In traditional CPG, you’re managing stable, predictable inventory. With indoor ag, we’re dealing with a living product where yield and shelf life are the ultimate differentiators. That’s the daily challenge. For me, the real shift is the ‘why.’ I’m grateful for my foundational training in the soft drink industry, but my perspective changed after having children—you can’t feed a growing population with soda, but you can make a life-changing impact through sustainable agriculture.

There’s a tangible passion in this category that’s different. From our growers to the families picking our products up at the grocery store, there’s a deep, personal relationship with the food we put on the table. We aren’t just moving units—we’re nourishing people. That sense of purpose creates a culture of care and intensity you don’t find in traditional CPG.

Local Bounti’s Stack & Flow® Technology integrates vertical and greenhouse growing to improve yields, flexibility, and unit economics.
Local Bounti’s Stack & Flow® Technology integrates vertical and greenhouse growing to improve yields, flexibility, and unit economics.

Local Bounti has taken a measured approach to scaling, even as demand for indoor-grown leafy greens continues to evolve. From your seat, what does “responsible growth” look like at Local Bounti, and how do you decide when—and where—to grow next?

Responsible growth means expansion should be demand-driven, not capacity-driven. In response to growing demand, we identified an opportunity to enhance our facility in Georgia to create additional capacity.  We added our “Stack” phase to what was a traditional greenhouse facility, which resulted in a tripling of our run-rate production as compared to steady-state in the prior year period.  This experience was a scaled case study in what’s possible with our Stack & Flow® Technology and put us in position to complete two fully integrated state-of-the-art facilities in Texas and Washington over the past 18 months.  This is the power of the technology at Local Bounti – it provides us with the flexibility to scale in direct response to a retail environment that now views CEA as essential infrastructure. By aligning production ramps with long-term customer needs, we strive to ensure every square foot we add contributes to our path toward achieving positive adjusted EBITDA in 2026. It’s about being disciplined with our capital while being aggressive where the market wants us to be.

One of Local Bounti’s advanced growing facilities (Pasco, Washington), supporting a reliable, regional supply of fresh greens for retail partners.
One of Local Bounti’s advanced growing facilities (Pasco, Washington), supporting a reliable, regional supply of fresh greens for retail partners.

Retailers today are looking for more than just supply—they want consistency, flexibility, and long-term partners. How has Local Bounti’s hybrid growing model and product mix shaped the kinds of retail conversations you’re having now compared to a few years ago?

A few years ago, retail conversations were about ‘if’ CEA could work. Today, the attitude has shifted to an absolute ‘need’ for what we provide – in fact, we are hearing directly from retailers that they have tripled their allocation to the category for this upcoming year. Our hybrid Stack & Flow® technology has fundamentally changed those discussions as it is designed to solve the three biggest pain points for retailers: supply reliability, consistency and shrink. By combining the best of vertical and greenhouse growing, we’re delivering significantly higher quality plants with shelf life often double or triple that of our field grown competition. Retailers realize they need a partner with a durable and stable platform who can offer the flexibility of a broad product mix—from living heads to salad kits—with a reliable, local supply chain. When we show them our technology translates directly into less waste on their shelves and a better experience for their customers at home, the partnership moves from trial to long-term strategic necessity.

Local Bounti’s portfolio of fresh greens and salad products, grown locally and designed to meet evolving consumer and retail needs.
Local Bounti’s portfolio of fresh greens and salad products, grown locally and designed to meet evolving consumer and retail needs.

As Local Bounti works toward sustainable profitability, what lessons from the company’s recent operational and commercial progress would you share with other CEA operators trying to build durable, resilient businesses?

The biggest lesson: you have to go slow to go fast. Building a durable business requires getting the foundation right before you try to scale. That starts with the right people in the right seats at the right time, ensuring your team’s expertise matches your current stage of growth. It’s also critical to build specifically for current and future customer needs without over-engineering your systems. I think this is something that our co-founders and CEO Kathleen Valiasek saw early and have instilled into our culture.  We are constantly making trade-offs to maximize the opportunities in front of us while preparing for the future, and that means being thoughtful with how we are deploying resources.  While this industry often feels like a ‘tech’ business in trade conversations, we have to remember that at our core, we’re still farmers. Success comes when you treat technology as a tool to support the biology, rather than letting tech dictate the farm.  If we can keep that perspective intact and match it with prudent financial planning, the future will look extremely bright for Local Bounti.

Learn more about Local Bounti here and make plans now to join us at Indoor Ag-Con, February 11-12, 2026 at the Westgate Las Vegas!

Area2Farms

Area 2 Farms: Moving the Farm, Not the Food

As cities look for creative ways to repurpose underused real estate, Area 2 Farms is growing a new kind of opportunity—literally. Based in Arlington, Virginia, the company combines automation, soil-based cultivation, and a hyperlocal CSA model to bring fresh produce closer to consumers. Backed by $9 million in new funding, Area 2 is preparing to expand its pilot success into cities nationwide. Indoor Ag-Content caught up with Tyler Baras, Chief Science Officer and Co-Founder, to learn more about their approach, technology, and what’s next.

Congratulations on becoming a dad! Between farming and fatherhood, what’s been the bigger learning curve so far?

Thank you! I’m a new dad, so I am sure there are all sorts of unexpected surprises in store. But my hope, if there is a parallel, is that nurturing a life leads it to flourish.

Your first farm in Arlington has shown how flexible your model can be. What lessons from that pilot are shaping how you’ll design and deploy future locations as you expand into new cities?

Our Arlington, VA location has been an incredible starting point. At every farm I’ve worked at some of the best moments were farm tours for visitors. I knew opening the farm to the public would spark excitement in visitors but seeing that translate into consistent sales has been amazing. Our motto is “move the farm, not the food” and we’ve seen this work to the benefit of not just the farmer, which gets better margins selling direct and eliminates the squeeze from selling to distributors, but for customers they’re getting the freshest product and we can offer crops they’ve probably never seen. Most crops are grown for their suitability to the supply chain, but we just select what tastes great!

One of the biggest lessons in the work we do is the importance of a repeatable design centered around the farmer. Farming is a continuous pursuit, and you have to ask everyday is this repeatable, is it good for farmers, is it good for the community, and does it make sense financially.

Unlike most vertical farms, Area 2 uses soil instead of hydroponics. Why take that approach, and what advantages have you seen in crop quality or variety?

Healthy soil is the foundation, and it’s a major differentiator in the crops we can grow, not just leafy greens. We’re very proud of our ability to grow a wide range of crops. Carrots were one of our first challenges and since we’ve continued to expand our list of non-traditional vertical farm crops with turnips, radishes, onions, leeks, potatoes, kohlrabi, and so much more. We want to be our community’s go-to farmer, not just their salad guy. Being able to grow a differentiated set of basket items has been essential from the beginning.

Your patented Silo system automates light cycles and crop movement. How does this setup boost productivity or efficiency compared to traditional vertical farms?

Over the past 15 plus years in the CEA space, I’d seen several persistent challenges in vertical farming. Profitability, labor, energy, and expense, which are all addressed by our system. We’ve removed the need for an expensive, energy intensive and complicated HVAC system, and removed the elaborate irrigation systems, all by pairing the most common climate problem in a vertical farm with a plant physiology solution. Heat rises. On average most vertical farms operating around 10’ to 20’ tall have about a 10 to 15 degree temperature difference from bottom to top. Plants want a 10 to 15 degree temperature difference between their day and night. We move plants through the naturally occurring stratified temperature zones in the vertical farm so plants experience their dark cooler night at the bottom of the room and their bright warmer day in the middle and top of the room. Instead of attempting to swing the climate of the full room from warmer to cooler everyday to create the ideal conditions for plants, we have a steady state climate in our room and move plants in these naturally occurring microclimates that meet their needs for each part of their day. This movement comes with a ton of extra benefits and cost savings, and farmers can easily access any plants in the system as they travel through the lower levels.

 

Plants move through the naturally occurring stratified temperature zones in a 24-hour period to experience a cool night at the bottom and a warm day at the top.

Your CSA-style model connects farmers directly with neighbors. As you expand, how do you keep that same local, community feel?

It starts with the farmers. They are the heart of our community connection. Our goal is to empower more farmers and to support them in being leaders in their communities. We open our farms up to the community, and through tours and events and delivering amazing produce, our farmers build a direct relationship between the community and the farm. Once people can see exactly where their food is coming from and how it’s grown, everything changes.

Do you see opportunities to collaborate with other CEA operators, researchers, or technology providers as you grow your network of farms?

Absolutely. Behind every farmer is a farmer, and we’re collaborating all of the time.

 

Learn more about Area 2 Farms by visiting the website here.

Up Vertical Farms Canada

Scaling New Heights: UP Vertical Farms CEO on Innovation and the Future of Canadian Farming

As pioneers in Canadian vertical farming, brothers Bahram and Shahram Rashti, Co-Founders of UP Vertical Farms, are redefining how leafy greens are grown and delivered. Together they have built one of Canada’s most innovative fully-automated, high-density vertical farms that merges sustainability, technology, and profitability to tackle food security challenges head-on. In this Q&A, CEO Bahram Rashti shares insights into UP Vertical Farms’ cutting-edge touchless growing methods, their key partnerships, and their ambitious plans to scale into the U.S. market. Readers can also hear directly from Bahram during the “Trends in Canada” panel at Indoor Ag-Con 2025, where he will discuss the opportunities and challenges shaping Canada’s controlled environment agriculture industry.

From Dentistry to Vertical Farming: Your career shift from dentistry to agriculture is unique, and you co-founded UP Vertical Farms with your brother, Shahram. What inspired this transition, and how has your partnership shaped the company’s vision and success?

(L-R) Shahram and Bahram Rashti, Co-Founders, UP Vertical Farms

The transition from dentistry to vertical farming was definitely not a traditional one, but it was driven by a deep desire to make a more direct impact on people’s well-being and the environment. Dentistry provided me with an understanding of health and the importance of sustainable living, but over time, I realized that agriculture, particularly food security, was a space where I could contribute on a larger scale. The idea of producing fresh, healthy food in an environmentally sustainable way really resonated with me.

My brother, Shahram, and I have always shared a vision of creating solutions that improve people’s quality of life. We believe that we’re on this planet once and we should try to help solve a problem while we can. After much research, we concluded that the time would soon approach where relying on the current food systems alone would lead to supply shortages due to the adverse effects of climate change. We realized the gap in the market will be significant and grow steadily over time leading to a massive emerging market in vertical farming. That was about 10 years ago when we decided to prepare for this shift from outdoor production to indoors, which is not just a once in a lifetime but a once in history event – producing commercial scale vegetable production without the need of the sun. Our partnership in co-founding UP Vertical Farms has been instrumental in pursuing this vision — my foundation in science and systems combined with his expertise in technology and business has allowed us to build a company focused on innovation and sustainability. Our complementary skills have enabled us to scale effectively and stay true to our core values of growing affordable produce while balancing environmental responsibility.

Innovation and Sustainability: UP Vertical Farms emphasizes innovation and sustainability. How do your touchless technology and unique growing methods address food security and market demands while ensuring profitability?

Up Vertical Farms Canada Innovation and sustainability are the cornerstones of UP Vertical Farms. We design, build, and operate our plant factories in a turnkey fashion, which enables us to customize and build exactly what is needed for a fraction of the cost. Our touchless technology in CEA is a game-changer in the farming industry — it automates key parameters for irrigation, seeding, growing, harvesting, and packaging, in turn minimizing human intervention and reducing labor costs while also maintaining hygiene. This ecosystem technology helps us optimize resource use, reduce waste, and achieve consistent, high-quality yields all year round with 99% less water, nutrient fertilizers, and land compared to traditional farming.

Up Vertical Farms This not only makes our operations more sustainable in our 12-level industrial growing racks, but also more resilient to climate change, inflation, and supply chain disruptions. As a result, it allows us to significantly contribute to food security especially since our enclosed warehouse structures are closer to the regions we want to feed. Furthermore, deploying just -in-time production across our racks allows us to provide fresh, nutritious produce with longer shelf life to the market daily while reducing waste from overproduction. Therefore, our model is not just about sustainability; it’s also designed for profitability. Focusing on high density production, and by reducing overhead costs and waste, and ensuring a constant, predictable output, we’re able to offer competitive prices to consumers, and the market can’t seem to get enough of our crunchy tasty lettuce varieties and salad kits.

Building Partnerships: Partnerships have been critical to your growth—from collaborating with Oppy in your early stages to working with retailers like Costco. How have these relationships influenced your production, distribution, and business strategy?

Partnerships have been crucial to our success, both in terms of scaling and understanding market needs. Oppy, in the early stages, provided us with invaluable insights into the retail and distribution world, helping us refine our products and processes. Their experience in logistics and relationships with retailers allowed us to hit the ground running and reach a wider audience. Oppy understood our vision and the market opportunity from the very beginning, and they have been a great partner to align with to capture the increasing indoor grown leafy greens market in North America.

Up Vertical FarmsWorking with major retailers like Costco has also been a game changer. It’s given us the ability to scale our operations and ensure that we can meet consumer demand for fresh, sustainable produce at a competitive price. These partnerships push us to continuously improve our production systems and ensure quality control at every level, from farm to store shelf. Meeting and surpassing their stringent quality and value requirements has allowed us to grow our programs and become a trusted supplier all year round – not all vertical farms can currently fulfill both.

Our business strategy has always been to build long-term relationships, not just with retailers but also with consumers, ensuring that we’re providing them with the highest quality produce while contributing to local economies. Consumers appreciate quality and value, which is evident as we steadily gain more market share. The trust we’ve built with the different retail, financial, and distribution partners has allowed us to scale efficiently while keeping our core values of innovation and sustainability intact.

Scaling Beyond Canada: Your recent expansion into Alberta, Saskatchewan, and Manitoba is a big milestone. What strategies are you using to scale operations, and how do you plan to navigate entering the U.S. market?

Expanding into provinces like Alberta, Saskatchewan, and Manitoba has been an exciting milestone. Our strategy for scaling is rooted in replicating our core operational model but adapting it to the unique needs and taste profiles of each region. Our company has recently rolled out 12 tasty salad kit offerings which pair perfectly with our crunchy baby leafy greens. Providing this many unique and market classic salad kits by a Canadian company to retail stores is another market first which we are proud of. Canadians want to eat more locally grown, fresh, long-lasting, and pesticide-free vegetables, naturally making our products highly successful and in demand. We’ve built a strong understanding of consumer preferences, which allows us to tailor our salad kit offerings to retail partners across each province.

When entering new markets, whether domestically or internationally, it’s essential to form strong partnerships with regional and national retailers and ensuring that we’re not just meeting the market’s immediate needs but also contributing to its long-term sustainability goals.

 

Up Vertical FarmsAs for entering the U.S. market, our vision and strategy is quite long term as the American consumers are also searching for the high quality and value propositions which our products offer. We also plan to leverage the scalability of our touchless technology and our proven track record in Canada to demonstrate the viability of vertical farming as a solution to food security challenges in the U.S. We are in the process of establishing strategic partnerships with American retailers with the intention to eventually have local production facilities across certain states. This expansion will in part be fueled and accelerated by the capital raise that we are currently completing.

Future of Vertical Farming in Canada: As a pioneer in Canadian vertical farming, what do you see as the biggest opportunities and challenges for the industry’s growth in the country?

The future of vertical farming in Canada is incredibly promising. We currently import most of our fruits and vegetables across Canada with lettuce having one of the highest volumes. Even though Canada has a vast landmass and freshwater source, agriculture land is limited, and harsh seasonal climates do not allow for year-round field production of many staple crops. Vertical farming however offers a sustainable way to grow food close to where it’s consumed, reducing the reliance on long-distance transportation and always making fresh produce available. The demand for locally grown, pesticide-free, and sustainable food in Canada is only increasing, which presents a tremendous opportunity for vertical farming to fill that gap and help reduce the dependence on imports.

However, there are challenges to overcome. While the long-term benefits are clear, there can be a significant barrier to entry for new players. This is where partnerships, innovation, and government support will play a key role in driving the industry forward.

One of the challenges is that there is no ecosystem blueprint for new entrants to follow, and building the know-how and expertise in vertical farming can be very challenging and costly. Consumer education is another challenge. While vertical farming is becoming more well-known, there’s still a need to educate the public about the benefits of its sustainably grown produce. We have taken major strides in that direction with both partner retailers and government agencies, but continued collaboration across the industry will be critical. Other more talked about items include energy use, capital costs, and competition from existing field and greenhouse producers, all of which we have successfully managed.

Overall, I’m optimistic about the future of vertical farming in Canada. As the industry matures, we’ll see more innovation, cost reductions, and greater adoption, ultimately contributing to a more sustainable and resilient food system.

After almost a decade of R&D and experience, our team at UP Vertical Farms has mastered how to build and operate vertical farms to provide affordable, profitable, and high-quality leafy greens. We are setting the benchmark in Canada for successful vertical farming by having low CapEx and OpEx coupled with high density production and yield. It’s the same know how and expertise that we are applying to other vegetable production as we bring them indoors and grow vertical. This is just the beginning – the sky’s the limit.

Learn more about Up Vertical Farms by visiting their website.

And join us at Indoor Ag-Con, March 11-12, 2025 for the panel discussion with Bahram Rashti and other leaders:

Trends In Canada: Insights From CEA Growers Across the Nation
Tuesday, March 11, 2025 | 11:00 AM – 11:50 AM

 

 

Mucci Farms

From The Packer: Mucci Farms Acquires Greenhill Produce

From The Packer:

Mucci Farms, an Ontario-based greenhouse grower and marketer of fresh produce, has acquired Greenhill Produce, a nearly 150-acre greenhouse facility in Kent Bridge, Ontario, according to a news release.

Part of the newly established Cox Farms company, Mucci now farms some 650-acres of greenhouses in Canada and the U.S., helping to make Cox Farms the largest owner of greenhouse acreage in North America, the release said.

The expansion follows Mucci’s recent acquisition of Hacienda Farms, a 160-acre facility in Coatsworth, Ontario.

“We’ve had the privilege of working closely with Greenhill for many years, so we know firsthand the exceptional quality of both their facilities and their crops,” said Bert Mucci, CEO of Mucci Farms. “Bringing Greenhill into the Mucci family enhances our supply chain [and offers a] more reliable supply for our partners.”

Read the full story in The Packer….

Optimizing Supply Chains of Indoor Farms: Research Participation Opportunity

Sponsorship and Research Participation Opportunity!

Overview: Dr. Eric W. Stein, Executive Director of the Center of Excellence for Indoor Agriculture, and Dr. Afrooz Moatari-Kazerouni, COE partner and Assistant Professor of Operations and Supply Chain Management, School of Business Administration at Widener University are working on a research paper on how to optimize supply chains of indoor farms.  This study examines the complexities of supply chain management within the context of indoor farming and addresses the critical needs for robust supply chain frameworks to support the scalability and economic viability of indoor farming.

Working Title: “Optimizing Supply Chains of Indoor Farms”

Methodology:  Online Survey

How to Contribute: Contributions include participation in the study and/or financial support.

Participation in the Survey:  Go to our website for more information. https://indooragcenter.org/research

Sponsorship Opportunity: The Center of Excellence and the authors welcome the support of the following types of organizations that may wish to contribute to the study:

  • Indoor farm operators (greenhouse and vertical farms)
  • Equipment suppliers
  • Consultants
  • Horticultural specialists
  • Academic researchers

Sponsors will be acknowledged in the paper and through various media channels (detailed description available at https://indooragcenter.org/research).

To sponsor or contribute to this research project, please contact Dr. Stein at team@indooragcenter.org for more information. More information is also available at https://indooragcenter.org/research

Vonnie Estes CEA Story for Indoor Ag Content

How indoor farms can strengthen the fresh produce supply of outdoor growers

From Vertical Farm Daily:

“There’s a bigger chance of crop failure for outdoor growers not to deliver, because of weather. We should continue to balance it out with CEA produce. However, as a retailer, if you only want to sell indoor produce, there aren’t dozens of suppliers to buy from,” says Vonnie Estes, Vice President of Innovation, International Fresh Produce Association.

Having worked in fresh produce for decades, Vonnie is keeping busy with technology in agriculture that’s used throughout the entire supply chain. Currently, she devotes most of her time to climate change and labor shortages, trying to find an answer on how to mitigate and respond to these shifts. Reflecting on a rocky couple of years within the CEA industry, Vonnie reassures that indoor growers will be able to lock in contracts with retail, “Especially if you’re a producer with a strong track record.” However, as a new farm that might be a bit harder, especially when making big promises that cannot be lived up to. New farms will have to show a pathway to profitability and proof that they can stay in business to deliver quality products on contracts.

“When there’s a shortage due to weather events in open-field production, the trading desks come in trying to fill up the gaps which happens all the time in outdoor-grown. They have built a bigger infrastructure and more growers to pull from over time. Most indoor growers are selling directly to retailers so for the most part do not go through trading desks. As we have more indoor growers and larger supply, indoor will also be able to fill these gaps,” Vonnie elaborates.

Read the full story from Vertical Farm Daily here…

CEA Alliance HortiDaily

CEA Alliance Applauds Introduction of Bipartisan Senate Bill to Scale Supply Chain Loan Guarantee Program at USDA

As reported in HortiDaily,  the CEA Alliance applauds the introduction of the Food Supply Chain Capacity and Resiliency Act of 2024 by Senators Sherrod Brown (D-OH) and Mike Braun (R-IN), which would provide critical alternative funding for the controlled environment agriculture (CEA) industry and other similar capital-intensive food supply chain-related industries by enhancing and making permanent USDA’s previous Food Supply Chain Guaranteed Loan Program. 

“The CEA Alliance applauds Senators Sherrod Brown and Mike Braun for working together to ensure that America’s indoor farming industry has the financial tools it needs to continue to grow and scale,” said Tom Stenzel, Executive Director for the CEA Alliance. “Indoor farming is helping to build a more resilient fresh food supply chain. The next farm bill must enhance and make permanent the Food Supply Chain Guaranteed Loan Program so that producers can access valuable financing to help the industry grow.”
“At a time when the U.S. is importing more fresh food than ever before, Congress must advance critical legislation like the Food Supply Chain Capacity and Resiliency Act to support innovative supply chain solutions such as indoor farming,” said Colin O’Neil, Chair of the CEA Alliance’s Public Policy Working Group and Senior Director of Public Policy & Social Impact for Bowery. “Being able to grow fresh produce indoors all year round is a win for consumers, a win for the environment, and a win for the fresh food supply chain – greater support through programs like these will help the American indoor farming industry grow and thrive.

Read the full story from HortiDaily …

 

A Unique Form of Funding Could Provide Relief For Indoor Vertical Farms

High Operating Costs and Shrinking VC Are Big Challenges

Indoor vertical farming has seen significant growth. In fact, the industry is expected to exceed $35.3 billion by 2032, up from $5.6 billion in 2022. It is also expected to achieve a compound annual growth rate of 20.8% by 2032, according to Market.us.

There’s a lot driving the trend. Supply chain issues have disrupted distribution for traditional farms. The climate crisis will continue to reduce crop yields. We’re seeing increasing demand for year-round access to fresh fruits and vegetables. And a growing population means we need more food for more people.

The world needs indoor and vertical gardening — and investors have taken notice. Last year, indoor vertical farming investments surpassed $2.4 billion.

Whether that type of investment continues is uncertain. According to PitchBook’s Q1 2023 AgTech Report, indoor farms raised $75.8 million globally across 14 deals in the first three months of 2023, down 70% in deal value from the previous quarter and 91% year-over-year. So far this year, there’s less VC funding available to fill indoor farmers’ coffers. It doesn’t mean the money’s not available; it just may be harder to obtain.

Current challenges eat away at capital

CSC Leasing Guest Post 1

Indoor farmers are facing some headwinds right now. Generally speaking, indoor and vertical growing facilities come with hefty operating costs. These organizations need significant capital to build out facilities and buy equipment.

Additionally, these facilities require a great deal of energy to operate, and that is particularly challenging as we saw electricity prices rise 10.2 percent over the last year, according to the U.S. Bureau of Labor Statistics. Organizations in the industry need cash reserves to cover these high costs.

Indoor vertical gardening also requires highly skilled, qualified people to run the operations. Organizations are competing for workers with a unique skill set in a small talent pool. They need the money to both recruit them and pay them their value.

For many organizations, the cost of building and running their operations is bleeding the equity well dry. They simply don’t have the capital for activities that enable them to scale, like expanding their facilities, hiring the right people, and marketing their product.

Overcoming these challenges requires thinking outside of the box in terms of funding.

Extending the cash runway with equipment leasing 

With the potential for less money coming in from outside sources—and both the cost of inflation and energy not going anywhere in the near term—indoor and vertical farming companies will need to figure out ways to stretch the money they do have.

One way to do that is through equipment leasing, which is a flexible low-cost way to finance the type of equipment needed to build and outfit an indoor growing facility. CSC Leasing, for example, offers a non-dilutive equipment lease line up to $20 million that doesn’t have warrants or require restrictive covenants.

Also, what many business owners don’t know is that they may be eligible for a sale leaseback, where an equipment financier purchases pre-owned equipment and places it under lease. For example, CSC offers up to 100% reimbursement, providing organizations with a much-needed influx of cash.

Equipment leasing can enable organizations to:

CSC Leasing Post 2

  • Conserve equity capital and bank facilities for mission-critical growth and other key operating initiatives, rather than spending it on depreciating assets.
  • Plan more effectively and establish a safety net with predictable payments spread out over several years.
  • Hold on to equity in the business—if the lessor offers non-dilutive equipment financing options.
  • Gain the liquidity to respond quickly to overcome challenges, act on opportunities and avoid risks.
  • Stay on the cutting edge with new technology and avoid the burden of costly obsolescence and equipment disposal.

Ultimately, equipment leasing can provide indoor and vertical gardening organizations with the cash they need to continue to grow the business—even as challenges persist.

CSC leasingIf you would like to learn more about CSC’s variety of solutions, contact Jess Hawthorne at jhawthorne@cscleasing.com or 804-239-7368.

 

 

 

Codi Whittaker of Primitive Greens inside one of their farms

The Indoor Farmer Who’s Using Freight Farms to Increase Food Security for the Cayman Islands

In the Cayman Islands, Freight Farms and Primitive Greens are working to overturn the status quo of food supply.

A Freight Farm being Delivered
A Freight Farm being Delivered

With the Cayman Islands’ beauty comes a challenging food supply chain. The islands only produce about 1% of their own food, with the rest of the food they consume sourced from Jamaica, Honduras, and, largely, the United States. Relying on shipped produce results in precarious food security. To make matters worse, there are very few direct shipping lines from food-producing Caribbean islands to the Cayman Islands. With lengthy shipping routes, the fresh food that the Cayman Islands ultimately receives is no longer very fresh … and it’s also very pricey.

Enter Freight Farms’ vertical shipping container farms. Codi Whittaker, a young recent college grad, and business partner Kerry Lawrence purchased three container farms from Freight Farms to launch their business, Primitive Greens, with the goal of increasing the sustainability of life on the Cayman Islands.

A Lettuce Wall in Primitive Greens Freight Farm
A Lettuce Wall in Primitive Greens Freight Farm

The three Freight Farms allow Primitive Greens to defy the very things that make fresh food so scarce on the island: a lack of arable land, extreme weather which makes farming near-impossible, and those long shipping lines. Instead, Primitive Greens grows right near consumers, inside high-tech shipping containers right on Grand Cayman island. They work the container farms’ perfectly climate-controlled environment to their advantage to grow beautiful, coveted produce. This, they sell to grocery stores and restaurants on the island at a competitive price — offering island establishments and residents reasonably priced, long-lasting, quality produce.

A school group visits Primitive Greens
A school group visits Primitive Greens

To increase the sustainability of the business, Primitive Greens plans to install a solar and energy storage microgrid that will fuel the farms with 100% clean energy. Energy cost is up everywhere, and the Cayman Islands are not immune. Currently, Primitive Greens pays the equivalent of $0.40 USD per kilowatt hour of electricity — mostly from dirty diesel fuel offered by the local utility. (By comparison, the current average cost of energy in Los Angeles is about $0.26 USD per kilowatt hour.) The solar project, which features solar panels floating in the water of an old quarry, will not only make growing food more sustainable. It will also provide resiliency to the island, through power that is available 24/7 and independent of the electrical grid.

“We’re basically selling the community cheaper, healthier, more sustainable, locally grown food; we’re providing power for less than half the cost of diesel; we’re creating food security; we’re creating jobs; and we’re not clearing any land.” — Codi Whittaker, Co-Founder and Operator of Primitive Greens

Primitive Greens intends to send Freight Farms to each of the three Cayman Islands, to alleviate food security for the entire territory. Ultimately, they strive to be the providers of fresh produce for Cayman.

Primitive Greens was recently featured in a webinar hosted by Freight Farms on the potential for indoor farming in the Cayman Islands. Watch the conversation at https://www.freightfarms.com/visit-freight-farms/primitive-greens-live-webinar.

Freight Farms has seen incredible growth in the adoption of their technology in the Caribbean islands, many of which face challenges similar to the Cayman Islands’. From Turks and Caicos to the Bahamas, islanders are discovering the power of controlled environment agriculture to revolutionize food quality and access for themselves and their communities.

About Freight Farms:

Founded in 2012, Freight Farms debuted the first vertical hydroponic farm built inside an intermodal shipping container with the mission of democratizing and decentralizing the local production of fresh, healthy food. Since its inception, Freight Farms has refined its product offering to arrive at the Greenery™ S container farm. With global customers ranging from small business farmers to the corporate, hospitality, retail, education, and nonprofit sectors, Freight Farmers make up the largest network of connected farms in the world. AgTech Breakthrough named Freight Farms the 2022 “IoT Monitoring Solution of the Year” for its farmhand® IoT automation software.

To learn more, visit freightfarms.com or connect on Facebook, Instagram, LinkedIn, Twitter, or TikTok.

Controlled Environment Agriculture Is The Future of Food

Imagine Farms Cheryl & Lisa
Imagine Farms Sisters and Co-Founders Lisa Merkle & Cheryl Arnold

Indoor AgCon 2022 was full of inspiring and informative sessions and speakers. The main takeaway: Controlled Environment Agriculture is the future of food. Growing food in a controlled environment provides a stable and dependable framework that is currently missing in our food supply chain. The ability to grow food 365 days a year regardless of season or location without pesticides or harsh chemicals is revolutionary. 

I was invited to speak on a panel discussion about shipping container farms and represent Imagine Farms, which is funny because we don’t identify as a shipping container farm although we use shipping containers as the building blocks of our system. 

We differentiate ourselves from Shipping Container Farm businesses (Freight Farms, Crop Box, etc.)  as we are not in the business of building and selling turnkey systems.

Rather, we worked with a designer to build our system, using the insulated shipping containers as a shell.  Currently, we use the shipping containers as grow rooms and adjacent functional spaces (walk in cooler, pack room, nursery). At this time, we have 8 rooms dedicated to Leafy Greens and Petite Root vegetable production and 2 rooms dedicated to Mushrooms.

Imagine FarmsThis process has inspired our vision to build a large scale production farm with groups of grow rooms that work together to grow a variety of crops under one roof – this might mean a warehouse farm with grow rooms built out and/or continuing to utilize shipping containers for this purpose (indoor or outdoors – or a combo of both). We are in the early stages of raising a Series A to build 15-20 grow rooms under one room with the addition of automation to begin to fulfill the demand in South Florida.  

Cheryl and I started in one shipping container farm that we built ourselves (with the designer) – and did it all ourselves for the first 2 years – we acquired hands-on experience growing as well as all the different aspects involved with growing and distributing food; integrated technology, tested different crops, sales, marketing, distribution, accounting, packaging, food safety, etc. Most importantly, we were able to test the market which is the framework for building the business.  

When we started Imagine Farms we appreciated the positive attributes that come with growing in a controlled environment; significant decrease in water usage when compared to field farming, growing without pesticides, and the positive aspects of ‘farm to table’ as a service. Now, it is evident that natural resources are scarce – specifically water, arable farmland and access to minerals for fertilizer.

We are facing a grain shortage that will drive up the cost of basic food and other commodities because of the war in Ukraine, while our physical resilience and mental health depend on access to fresh, healthy food. The more intelligent, motivated and passionate individuals exposed to the industry, the better. Shipping container farms placed in schools, universities, public programs and start-ups might be the greatest vehicle to accelerate this industry. 

Learn more about Imagine Farms by visiting their website or calling 844.204.0002.