The Journey of Indoor Ag: Reflections and Predictions
“We felt like we were doing a lot of things right. Only in retrospect [are there] a lot of lessons that we learned that I’d like to share and hope some of you can learn from the stuff that we experienced.” These words from former VP Chris Cerveny resonated deeply at Indoor Ag-Con, not just as a reflection on his company, Fifth Season, but as a broader commentary on the entire indoor agriculture industry. His insights come at a pivotal moment, as the sector navigates a complex landscape marked by both technological advancements and financial turbulence.
The past decade has been a period of rapid growth and learning for indoor agriculture, a field that encompasses both vertical farming and high-tech greenhouses. As the industry continues to evolve, it’s becoming increasingly clear that the lessons of the past are invaluable for shaping a sustainable future. This sentiment echoes the thoughts of Agritecture CEO Henry Gordon-Smith, who in 2021 emphasized the importance of understanding the history of vertical farming to better prepare for what lies ahead.
The story of indoor agriculture over the last ten years is rich and varied, and while an exhaustive account would require a substantial volume, a series of snapshots can offer valuable insights into the industry’s trajectory. These glimpses, drawn from a decade of reporting by AgFunderNews, shed light on the challenges and milestones that have defined indoor ag.
**2014 – The Year of the Groundbreakers**
In 2014, controlled environment agriculture (CEA) was still a burgeoning niche. AeroFarms was making headlines with its ambitious plans for a facility in Newark, New Jersey, which aimed to produce 1.5 million pounds of lettuce annually. Meanwhile, Atlanta-based PodPonics was exploring renewable energy as a power source for indoor farming. Although PodPonics would eventually file for bankruptcy in 2016, the concept of sustainable energy in indoor ag has persisted as an industry goal.
**2015 – Global Ambitions and Challenges Take Root**
By 2015, the conversation around vertical farming’s benefits was gaining volume. AeroFarms claimed its operations were significantly more productive than both field farms and hydroponic greenhouses. However, the reality of high energy and capital demands was becoming apparent. At Indoor Ag-Con, industry leaders grappled with challenges like continuous capital raising, talent acquisition, and the unproven commercial viability of many technologies.
**2016 – The Greenhouse vs. Vertical Farm Debate Begins**
The debate between the merits of high-tech greenhouses and vertical farms took center stage in 2016. Investors like Greg Oberholtzer of WP Global Partners questioned the cost-effectiveness of vertical farming, pointing out that greenhouses could also be strategically located near urban centers. BrightFarms, a leader in the CEA space, continued to attract significant investment, highlighting the ongoing interest in optimizing indoor agriculture models.
**2017 – ‘You Will See Us Around the Globe’**
Plenty co-founder Matt Barnard’s bold prediction in 2017 captured the industry’s global aspirations. With significant investment from giants like Softbank, companies like Plenty were poised to revolutionize access to fresh produce worldwide. Yet, alongside these ambitious declarations, voices of caution emerged, emphasizing the importance of thoughtful scaling to avoid potential pitfalls.
As the indoor agriculture industry looks ahead, the experiences of companies like Fifth Season serve as a reminder of the complex interplay between innovation, sustainability, and economic viability. The path forward will require a careful balance of ambition and prudence, with a keen eye on the lessons of the past decade. With continued dialogue, reflection, and strategic investment, indoor ag may yet realize its full potential in reshaping our food systems for the better.