A Farm Grows in the City

Billions of people around the world live far from where their food is grown.

It’s a big disconnect in modern life. And it may be about to change.

The world’s population is expected to reach 9.7 billion by 2050, 33% more people than are on the planet today, according to projections from the United Nations. About two-thirds of them are expected to live in cities, continuing a migration that has been under way around the world for years.

That’s a lot of mouths to feed, particularly in urban areas. Getting food to people who live far from farms—sometimes hundreds or thousands of miles away—is costly and strains natural resources. And heavy rains, droughts and other extreme weather events can threaten supplies.

Now more startups and city authorities are finding ways to grow food closer to home. High-tech “vertical farms” are sprouting inside warehouses and shipping containers, where lettuce and other greens grow without soil, stacked in horizontal or vertical rows and fed by water and LED lights, which can be customized to control the size, texture or other characteristic of a plant.

Companies are also engineering new ways to grow vegetables in smaller spaces, such as walls, rooftops, balconies, abandoned lots—and kitchens. They’re out to take advantage of a city’s resources, composting food waste and capturing rainwater as it runs off buildings or parking lots.

“We’re currently seeing the biggest movement of humans in the history of the planet, with rural people moving into cities across the world,” says Brendan Condon, co-founder and director of Biofilta Ltd., an Australian environmental-engineering company marketing a “closed-loop” gardening system that aims to use compost and rainwater runoff. “We’ve got rooftops, car parks, walls, balconies. If we can turn these city spaces into farms, then we’re reducing food miles down to food meters.”

Moving beyond experiments

Urban farming isn’t easy. It can require significant investment, and there are bureaucratic hurdles to overcome. Many companies have yet to turn a profit, experts say. A few companies have already failed, and urban-farming experts say many more will be weeded out in the coming years.

But commercial vertical farms are well beyond experimental. Companies such as AeroFarms, owned by Dream Holdings Inc., and Urban Produce LLC have designed and operate commercial vertical farms that aim to deliver supplies of greens on a mass scale more cheaply and reliably to cities, by growing food locally indoors year round.

At its headquarters in Irvine, Calif., Urban Produce grows baby kale, wheatgrass and other organic greens in neat rows on shelves stacked 25 high that rotate constantly, as if on a conveyor belt, around the floor of a windowless warehouse. Computer programs determine how much water and LED light the plants receive. Sixteen acres of food grow on a floor measuring an eighth of an acre.

Its “high-density vertical growing system,” which Urban Produce patented, can lower fuel and shipping costs for produce, uses 80% less fertilizer than conventional growing methods, and generates its own filtered water for its produce from humidity in the air, says Edwin Horton Jr., the company’s president and chief executive officer.

“Our ultimate goal is to be completely off the grid,” Mr. Horton says.

The company sells the greens to grocers, juice makers and food-service companies, and is in talks to license the growing system to groups in cities around the world, he says. “We want to build these in cities, and we want to employ local people,” he says.

AeroFarms has built a 70,000-square-foot vertical farm in a former steel plant in Newark, N.J., where it is growing leafy greens like arugula and kale aeroponically—a technique in which plant roots are suspended in the air and nourished by a nutrient mist and oxygen—in trays stacked 36 feet high.

The company, which supplies stores from Delaware to Connecticut, has more than $50 million in investment from Prudential, Goldman Sachs and other investors, and aims to install its systems in other cities globally, says David Rosenberg, its chief executive officer. “We envision a farm in cities all over the world,” he says.

AeroFarms says it is offering project management and other services to urban organizations as a partner in the 100 Resilient Cities network of cities that are working on preparing themselves better for 21st century challenges such as food and water shortages.

The bottom line

Still, these farms can’t supply a city’s entire food demand. So far, vertical farms grow mostly leafy greens, because the crops can be turned over quickly, generating cash flow easily in a business that requires extensive capital investment, says Henry Gordon-Smith, managing director of Blue Planet Consulting Services LLC, a Brooklyn, N.Y., company that specializes in the design, implementation and operation of urban agricultural projects globally.

The greens can also be marketed as locally grown to consumers who are seeking fresh produce.

Other types of vegetables require more space. Growing fruits like avocados under LED light might not make sense economically, says Mr. Gordon-Smith.

“Light costs money, so growing an avocado under LED lights to only get the fruit to sell is a challenge,” he says.

And the farms aren’t likely to grow wheat, rice or other commodities that provide much of a daily diet, because there is less of a need for them to be fresh, Mr. Gordon-Smith says. They can be stored and shipped efficiently, he says.

The farms are also costly to start and run. AeroFarms has yet to turn a profit, though Mr. Rosenberg says he expects the company to become profitable in a few months, as its new farm helps it reach a new scale of production. Urban Produce became profitable earlier this year partly by focusing on specialty crops such as microgreens—the first shoots of greens that come up from the seeds—that generally grow indoors in a very condensed space, says Mr. Horton, who started the company in 2014.

One of the first commercial vertical-farming companies in the U.S., FarmedHere LLC, closed a 90,000 square-foot farm in a Chicago suburb and merged with another company late last year. “We’ve learned a lot of lessons,” says co-founder Paul Hardej.

Among them: Operating in cities is expensive. The company should have built its first farm in a suburb rather than a Chicago neighborhood, Mr. Hardej says. Real estate would have been cheaper.

“We could have been 10 or 20 miles away and still be a local producer,” Mr. Hardej says.

The company also might have been able to work with a smaller local government to get permits and rework zoning and other regulations, because indoor farming was a new type of land use, Mr. Hardej says. While FarmedHere produced some crops profitably, it spent a lot on overhead for lawyers and accountants “to deal with the regulations,” he says.

Mr. Hardej is now co-founder and chief executive officer of Civic Farms LLC, a company that develops a “2.0” version of the vertical farm, he says—more efficient operations that take into account the lessons learned. Civic Farms is collaborating with the University of Arizona on a research and development center at Biosphere 2, the Earth science research facility in Oracle, Ariz., where it runs a vertical farm and develops new technologies.

Blossoming tech

New technology will improve the economic viability of vertical farms, says Mr. Gordon-Smith. New cameras, sensors and smartphone apps help monitor plant growth. One company is even developing augmented-reality glasses that can show workers which plants to pick, Mr. Gordon-Smith says.

“That is making the payback look a lot better,” he says. “The future is bright for vertical farming, but if you’re building a vertical farm today, be ready for a challenge.”

“I want to be ahead of the curve; I don’t want to be behind,” he says.

Many groups are taking more low-tech or smaller-scale approaches. A program called BetterLife Growers Inc. in Atlanta plans to break ground this fall on a series of greenhouses in an underserved area of the city, where it will grow lettuce and herbs in 2,900 “tower gardens,” thick trunks that stand in large tubs. The plants will be propagated in rock wool, a growing medium consisting of cotton-candy-like fibers made of a melted combination of rock and sand, and then placed into pods in the columns, where they will be regularly watered with a nutrient solution pumped through the tower, says Ellen Macht, president of BetterLife Growers.

The produce will be sold to local educational and medical institutions. “What we wanted to do was create jobs and come up with a product that institutions could use,” she says.

The $12.5 million project is funded in part by a loan from the city of Atlanta, with Mr. Cambardella helping by educating grant managers on the growing system and its importance.

Change at home

Another company aims to bring vertical farming to the kitchen. Agrilution GmbH, based in Munich, Germany, plans to start selling a “plantCube” later this year that looks like a mini-refrigerator and grows greens using LED lights and an automatic watering system that can be controlled from a smartphone. “The idea is to really make it a commodity kitchen device,” says Max Loessl, Agrilution’s co-founder and chief executive officer, of the appliance, which will cost 2,000 euros—about $2,200—initially.

The goal is to sell enough to bring the price down, so that in five years the appliance is affordable enough for most people in the developed world, Mr. Loessl says.

Biofilta, the company Mr. Condon co-founded, is marketing the Foodwall, a modular system of connected containers, an approach that he calls “deliberately low tech” because it doesn’t require electricity or computers to operate. The tubs are filled with a soil-based mix and a “wicking garden-bed technology” that stores and sucks water up from the bottom of the tub to nourish the plants without the need for pumps. The plants need to be watered just once a week in summer, or every three to four weeks in the winter, says Chief Executive Marc Noyce. The tubs can be connected vertically or horizontally on rooftops, balconies or backyards. “We’ve made this gardening for dummies,” Mr. Noyce says.

The Foodwall can use composted food waste and harvested rainwater, helping to turn cities into “closed-loop food-production powerhouses,” Mr. Condon says.

He and Mr. Noyce were motivated to design the Foodwall by a projection from local experts that only 18% of the food consumed in their home city of Melbourne, Australia, will be grown locally by 2050, compared with 41% today, Mr. Noyce says.

“We were shocked,” says Mr. Noyce. “We’re going to be beholden to other states and other countries dictating our pricing for our own food.”

“Then we started to look at this trend around the world and found it was exactly the same,” he says.

Traditional, rural farming is far from being replaced by all of these new technologies, experts say. The need for food is simply too great. But urban projects can provide a steady supply of fresh produce, helping to improve diets and make a city’s food supply more secure, they say.

“While rural farmers will remain essential to feeding cities, cleverly designed urban farming can produce most of the vegetable requirements of a city,” Mr. Condon says.

Read the original story at www.wsj.com.