Vertical farm stocks will be one of the biggest agricultural investment trends slowly in the coming years. The growing demand for higher production levels and the opportunity to utilize resources more efficiently are two key reasons vertical farming stocks are among the most prominent trends to watch. Therefore, investors in vertical farming need to pick out some of the highest-quality vertical farming stocks, those with proven business models and growing revenues.
The advantages make these stocks attractive options for investors entering the rapidly growing vertical farming market. First, there is an increasing list of vertical farming companies listed on major stock exchanges, providing investors with attractive opportunities. While one of the largest and most powerful vertical farming companies, Bowery Farming is still privately held, so it is not possible to invest via a stock exchange yet.
The business combination of Spring Valley and AeroFarms) would give vertical farming companies funding to expand. The SPAC agreement will provide AeroFarms with the capital to expand operations and build more of its green, leafy farms. It will finance the construction of additional farms, which will grow both leafy greens and other categories of produce that are primed for disruption, like strawberries.
Meanwhile, AppHarvest is seeking a joint venture with a large produce company, which will enable AppHarvest to create a nationwide network of controlled-environment farming facilities for growing fresh fruits, vegetables, and leafy greens. AppHarvest has two other facilities in Kentucky in the works, including another indoor 60-plus-acre farm outside of Richmond and a 15-acre facility for growing leafy greens somewhere called Berea. AppHarvest (APPH) will be focused on larger indoor farms for the next several decades as demand for options in indoor growing grows.
Best Vertical Farming Stocks in Canada
- Hydrofarm Holdings
- Eden Green Technology
- Vertical Harvest
Urban-Gro (UGRO) is an urban agriculture system that grows fresh produce in a vertical space without soil and sunlight. Urban-Gro, Inc designs and engineers growing systems for the commercial cannabis and indoor growing markets. Hydrofarm manufactures equipment and supplies for the U.S. and Canadian indoor growing market, including high-intensity grow lights and climate control solutions.
Hydrofarm Holdings makes and distributes equipment and supplies for the controlled-environment farming market, including vertical farming. Despite its name, vertical farming remains a niche industry within controlled environment agriculture, otherwise known as the indoor growing environment, that includes greenhouses and hoop houses. In addition, the vertical farming industry is now restricted almost exclusively to non-flowering leafy greens because of technical limitations and retail farm market realities.
Even though vertical farms cannot substitute for an entire food production supply chain, they are capable of growing costly, perishable, compact crops such as leafy greens. In addition to leafy greens, microgreens, and herbs, Bowery Farming offers solutions for vertical grazing designed to deliver hydroponic animal feed.
Because Eden Green Technology designs, builds and helps operate each greenhouse, you can create your homegrown farm on just one-and-a-half acres. The folks at Vertical Harvest grow microgreens, lettuce, and tomatoes on quarter-acre hydroponic farms and are currently looking for partnership opportunities that will let them further extend their reach. Aerofarm’s 60-acre Appalachian Indoor Farm is already one of the largest high-tech greenhouses in the world, and now they have created a second 60-acre facility.
AeroFarms, a private-owned corporation, is now a leading player in sustainable indoor vertical farming. Newark seems to have bigger ambitions than the two indoor agriculture companies, with an indoor R&D vertical farm in Abu Dhabi and expanding to other markets, including plant-based pharmaceuticals and genetics. Appharvest is one of the most established vertical farming companies in the US, developing and operating large-scale, high-tech vertical farms.
Vertical Harvest has multiple brands, including Pure Sunfarms, Rose LifeScienceVie, Balanced Health Botanicals, and Village Fields Hemp. Canadian-based company Village Farms also owns Pure Sunfarms, Canada’s lowest-cost producer of marijuana, and Balanced Health Botanicals, a CBD brand. Interestingly, Hydrofarm Holdings (HYFM) has a marijuana brand, and they also own a low-cost cannabis producer in Canada.
One of these operations is now working to fulfill a $15-million agreement with North Star Agriculture in Whitehorse one year ago to develop and construct affordable vertical growing facilities in Yukon and other isolated First Nations and Northern communities dependent on expensive imported products. The firm has seen a surge in business using artificial light, hydroponics farming, and introducing organic nutrients and soil. In addition, harvest Returns recently listed an Alabama hydroponics farm and a company making precision sensor technology.
It is no surprise to see Blank Check companies making a run for indoor agriculture since green tech has been a popular target for these reverse mergers. For all of the hopes and hype surrounding vertical farming, many experts on indoor agriculture say that it will be difficult for the food companies in this space to get their act together before profitability. If you get it right, you are selling more than lettuce; you are selling the technology worldwide. By Renore Newman, Canada has seen some significant investments in the next generation of vertical farming, including $65 million invested into one commercial vertical-farming firm by McCain Foods Ltd., a French-fried-eating giant.
Vertical, indoor farming allows the widespread deployment of artificial intelligence and digital systems, facilitating the production of better-grade lettuce at lower prices. Beyond the increased automation vertical farming allows, using AI systems to track crops and adapt the farm operation for each will be one of the most meaningful disruptive changes to the agricultural industry. Some of these farms will need large footprints, even the indoor vertical varieties, and industrial-sized farming machinery and electronics. Nevertheless, the games are setting investors up for growth, with companies such as AeroFarms, AppHarvest, and Kalera expanding operations on farms such as AeroFarms.