Vertical Farming is dead. Long live Vertical Farming.

The following is a guest post from Emiliano Gutiérrez , CEO of Raiz Vertical Farms , an urban farm in Lisbon, Portugal. They have a unique model for vertical farming with a combination of hybrid lighting technology, distributed urban placements, and a Web3 play in the future. I am proud to share that Raiz also used Agritecture Designer to better understand vertical farming economics before launching. Want to be featured in this newsletter? Pitch me on your topic idea.

The advancement of technology and industry significantly influences societal evolution, molding our aspirations and desires. The ongoing challenges encountered by pioneering vertical farming companies have paved the way for new, innovative models in this field. This transformation emphasizes a return to fundamental agricultural practices while also fostering a novel approach to community engagement with food production. It offers a unique opportunity to reconnect with our agricultural roots and heritage, redefining our relationship with the food we consume.

Envision a future where cities are interspersed with verdant, technology-infused spaces dedicated to sustainable food production. These areas, characterized by their organic designs, biophilic architecture, and community-driven initiatives, could become vital sources of fresh produce for local restaurants, families, and the broader society. Such spaces would not only enhance urban aesthetics but also empower individuals to actively participate in food cultivation, providing direct access to freshly harvested produce and fostering a comprehensive understanding of its cultivation and care processes.

Realizing this vision, however, requires significant scaling and overcoming existing industry challenges. The Controlled Environment Agriculture (CEA) market, while innovative, has faced scrutiny and criticism, particularly concerning its high energy consumption and susceptibility to fluctuating energy prices. A potential solution lies in the integration of modern energy grids with intelligent response systems. Such systems could enable vertical farms to dynamically adjust their energy consumption in response to the varying availability of renewable energy, optimizing usage during periods of surplus and reducing it when demand is high elsewhere.

The commitment to renewable energy is crucial in achieving a sustainable and lower-emission agricultural system. As the scale of vertical farming expands, strategies such as Power Purchase Agreements (PPAs), retail energy agreements, or the development of micro-grids will become increasingly crucial. In conjunction with distributed energy resources (DERs), these strategies are essential for scaling vertical farming networks in a manner that is both environmentally sustainable and economically viable.

Now, is vertical farming the answer to our problems?

It’s definitely just part of the solution. We need action on all fronts to make it through and thrive, from climate resilience infrastructure to carbon capture to cleaning up our industries, we need active leadership all throughout. While vertical farming is an important component of a broader environmental and food security strategy, it is not a panacea. It represents a piece of a larger puzzle that includes climate-resilient infrastructure, carbon capture technologies, and the transformation of industries towards sustainability.

Vertical farming offers the potential to shorten food supply chains, conserve water, and enhance consumer awareness about food sources. When implemented effectively, it promises not only attractive economic returns but also substantial growth potential, particularly in urban areas and regions experiencing food scarcity.

A significant issue in the current model of produce distribution is the lack of a meaningful connection between consumers and their food sources. This gap is often characterized by impersonal transactions, excessive use of plastics, and a general lack of interaction or engagement. There is a growing trend towards more engaging, interactive, and personal business models that strengthen the bond between people and the food they consume. Design and community engagement play crucial roles in this transformative process.

At the heart of it all, it’s always the community that surrounds us.

The role of the community is central to the success of such initiatives. An increasing number of consumers and culinary professionals are expressing a keen interest in understanding the origins of their food, with some actively participating in the harvesting process. This engagement not only deepens the connection with food sources but also positively impacts adoption rates and revenue.

Hosting events and interactive experiences at concept farms or urban agricultural spaces can further enhance this connection, turning passive consumers into active participants in the food production process. We’ve hosted over a thousand people at our Concept Farm and that has increased adoption and provided additional revenue. Every chef loves to have a connection with their ingredients; modern consumers care about where their food is coming from. It doesn’t get much closer to it than the opportunity of harvesting yourself!

Where does web3 fit in?

Looking ahead, the potential role of web3 in vertical farming presents new opportunities for innovation. It offers solutions for funding, traceability, and demand management within the vertical farming sector. Utilizing web3 technologies could enable decentralized funding models for new vertical farms, engaging local communities and small-scale impact investors in the process.

Imagine being able to fund the high CAPEX of new vertical farms in a decentralized manner, allowing local communities or impact investors of any size to invest in a new farm. This approach could increase the liquidity of such agricultural assets and develop new models for co-ownership, expanding the network of vertical farms globally and fostering a more inclusive and participatory agricultural ecosystem.

What about regenerative agriculture and caring for our soils?

At Raiz, we like to explore hybrid models designed to solve multiple urban challenges through one model. Our concept farm is both a micro greenhouse and vertical farm. We look towards the future and even consider how the integration of Controlled Environment Agriculture with regenerative farming practices is an exciting area for exploration. It is necessary for enhancing global climate resilience and creating a more sustainable agricultural landscape. This holistic approach to agriculture, which combines state-of-the-art technologies with traditional soil management techniques, will contribute to ensuring the long-term sustainability of food production systems.

In conclusion, while the journey to widespread implementation of vertical farming and integrated agricultural practices is filled with challenges, it is a necessary and vital endeavor. The sector must embrace both technological innovation and community engagement to realize its full potential in addressing global food security and environmental sustainability challenges. By working collaboratively and innovatively, we can create a more sustainable and resilient food system for future generations.

by Emiliano Gutiérrez

https://www.raiz.farm/