Is vertical farming expensive?

Is vertical farming expensive?

Lots of people are talking about the benefits of vertical farming, but there is far less transparency about how much it costs. Vertical farming technology and business models are relatively new, so there is good reason to exercise caution, understand its risks and do the appropriate research before jumping into the controlled environment agriculture industry. As with most business ventures, there are many factors that can impact whether a vertical farming business is not only successful, but profitable. 

Initial investment

There’s no getting away from it - a vertical farm is a substantial investment. Our own indoor farming solutions pricing start at £99,000. We model between 3-5 years payback period on our systems, though have seen it achieved faster. Larger systems can vary in cost from £800/sqm to >£3000/sqm, depending on system complexity. 

The most common ways to fund a vertical farming system are usually a blend of the following: grant funding, personal finance, asset finance (a loan from a bank or similar), or equity (outside parties invest in the business for a stake in the company). 

One benefit of a vertical farming facility is that it can operate in different markets, geographies and demographics. This also means that every business scenario is different, so a replicable business model is sometimes difficult to achieve. However, understanding variants in local costs or sales prices will mean you can allow for them in your business model and help to set yourself up for success.

Continue reading.

Photo Courtesy of LettUsGROW

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