Innovation in the Vertical Agriculture Space
By Kailey Zhao (CC’25, Analyst 2022–23)
As global populations skyrocket, demand for food has followed in tandem. Vertical agriculture is one of many responses to what could become a resource crisis. First proposed and popularized in 1999 by Columbia University professor Dickson Despommier, the practice involves growing crops vertically in layers stacked on top of each other, and often employs soilless farming techniques. The most popular of these techniques are hydroponics (growing plants in water-based solutions), aquaponics (nutrient-rich water is fed to hydroponically grown plants), and aeroponics (plants are grown in an air or mist environment).
Vertical farms allow farmers to grow ripe crops all year round with minimal disruption to the natural environment, giving consumers access to fresh produce even in the “off season”. This is achieved through weather resistant indoor farms with full control over factors such as light, carbon dioxide levels, and temperature. Thus, vertical agriculture tends to require a smaller unit area of land even while sustaining healthy crop yields. These yields are also more diverse, as farmers are able to cultivate a greater variety of crops when these crops do not have to share the same plots of soil.
There are, however, challenges associated with vertical farming. For one, farms are limited geographically because they must be located in areas with proximity to major highways, a population center, and an educated workforce. In the US, this means that vertical farms tend to be located in the vicinity of urban centers. While this limits the expansion of the industry to metropolitan areas, it does offer an unseen benefit — produce from vertical farms typically only travels a few miles to reach grocery shores, as opposed to the thousands of miles conventional produce is flown or driven. With increasing urbanization, vertical agriculture could aid in meeting the associated growth in demand, and offer greater freshness than conventional competitors.
Another challenge is high costs. Indeed, the upfront costs of vertical farming are over two times those of a greenhouse based on per pound production. Although cost control is challenging for vertical farms, its impact is potentially mitigated by the surge in popularity of health-conscious lifestyles among the middle and upper-class. Particularly interesting to note here is that income for these demographics is also growing, making it more likely that the populations attracted to the narrative of vertical farming are willing to spend a little extra on their groceries.
The vertical farming space is relatively new, and is thus quite dynamic. However, some key players have emerged, such as Aerofarms, which has raised over $138 million in funding since its inception in 2004 and focuses on aeroponic systems. Another notable company is GP Solutions, which is known for pioneering GrowPods — automated micro-farms that accelerate the rate of crop growth and have seen particular success with cannabis.
As vertical agriculture evolves, new innovation will surely materialize, and the direction of the field could prove crucial in the way societies sustain themselves in the future.
