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Vertical Farming: Bursting With Promise -- But Unknown Costs

By Dr. Michael Evans - - Wednesday, October 10, 2018

The production of food crops such as fresh greens (like lettuce and arugula) and herbs (such as basil) in vertical production facilities is part of a larger field of agriculture often referred to as controlled environment agriculture (CEA). In addition to production of these types of crops in vertical facilities, production also occurs in such facilities as greenhouses and plant factories inside of converted warehouses and shipping containers. The types of crops most commonly grown in CEA production include tomatoes, peppers, cucumbers, strawberries and fresh greens and herbs.

Depending on the crops being grown, different types of production systems might be used in CEA, but the most common systems are nutrient film technique, floating beads, Dutch bucket systems and various types of gutter systems. These systems might be true hydroponic systems — in which the plant roots are suspended in a static or recirculating fertilizer solution — or a system that uses an artificial soil or substrate in which the plant roots grow.

Across all of the types of controlled environment structures, systems and crops, the production of food crops in CEA has been experiencing rapid growth in the U.S. In fact, Rabobank, a Dutch multinational banking and financial services company, reported that the value of U.S. greenhouse-grown food crops exceeded $3 billion in 2013 and is expected to exceed $4 billion by 2020.

The U.S. Department of Agriculture’s statistics also support the conclusion that greenhouse-grown produce production has been rapidly increasing. Many factors have been reported to be responsible for the growth in greenhouse food crop production including reducing water and fertilizer inputs needed to grow crops, an ability to better program and have predictability of crops in CEA versus open fields, the ability to grow crops year-round and thus better serve the local markets, the ability to potentially better use biorational disease and pest control, the ability to grow food crops on nonarable land, the ability to produce higher volumes of produce on limited land (especially with vertical farms), and the potential for reducing food safety issues as compared to open field production.

In addition to these factors, the growth of CEA was reported as being fueled by market and human factors. Karen Halliburton Barber of Rabobank noted in a report that, “There is a growing preference among U.S. retail and food service buyers for greenhouse produce.” She also noted that, “The buyers are seeking the quality and reliability of supply that greenhouse products provide.”

As a type of CEA, vertical farming affords the opportunity to produce larger volumes of these crops per area than traditional field production. This is achieved by both the potential for year-round production and the multiple levels of production systems employed. Vertical systems also allow for the production of produce crops in areas where land is very limited or very expensive as is often the case with highly urbanized areas. However, compared to both field production and even traditional greenhouse (single level production) hydroponic production, the fixed costs and variable costs of production will be different for vertical farming. Some costs are likely to be significantly higher while others might be lower. Costs are likely to be spread over higher levels of crop production.

It is important to understand these costs. It is important also to understand the market. What is the target market? What crops does the market want? How large is that market and what are the prices for a given product that the market will tolerate are all important questions before deciding to move forward with any type of CEA operation — including vertical farms. Having a strong understanding of the crops to be grown, the level of production achievable, the costs of production and the market will increase the chances for a successful CEA business venture.

• Michael Evans, Ph.D., is director of the School for Plant and Environmental Sciences in the College of Agriculture and Life Sciences at Virginia Tech (@VTCals).

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CO2 GRO Is Pleased To Announce The Exercise of 6,214,035 Warrants For Proceeds of $1.24 Million Dollars

TORONTO, ON – October 15, 2018 – Toronto based CO2 GRO Inc. (“GROW” or the “Company”) (TSX-V: GROW, OTCQB: BLONF) is pleased to announce that long term shareholders, holders of 6,214,035, $0.20 warrants with an expiry date of October 12, 2018, have exercised the warrants, raising proceeds of $1.24 million.

The use of proceeds will be employed to accelerate the Company’s business plan on its CO 2 Foliar Spray technology roll-out in California, Colorado, Florida and Michigan, to initiate planned trials and commercial installations and for general corporate purposes. GROW's current annual burn rate is approximately $300,000.00 following the engagement of a project engineer and a bioscientist. The Company believes it is on track to realize first revenues in Q4 2018.

John Archibald, CEO of GROW commented "We are very pleased with the exercise by long term shareholders of warrants generating proceeds of over $1.2 million for GROW. The vision of the long term shareholders is aligned with those of senior management who own approximately 30% of the shares outstanding. We feel it is endorsement of our CO2 Foliar Spray technology and its global potential. The use of proceeds will be employed to advance the Company’s business plan, rolling out trials and commercial installations in high value markets in the United States and Canada, all activities we believe will accrete to long term shareholder value.”

Capitalization Table Post Warrant Exercise

After the exercise of the above-noted warrants, the Company has the following securities outstanding:

About CO2 GRO Inc.

GROW's mission is to accelerate all indoor and outdoor value plant growth naturally, safely, and economically using its patented advanced CO2 foliar technologies. GROW’s global target plant markets are retail food at $8 trillion per year (Plunkett Mar 2017), retail non-food plants at an estimated $1 trillion per year and legal retail cannabis that may reach $50 billion per year by 2022 (Bay St Analyst estimates).

GROW's CO2 technologies are commercially proven, scalable and easily adopted into existing irrigation systems. GROW's proven crop yield enhancements and revenue model are compelling for growers and Agri-industrial partners.

GROW's sole focus is working with its plant grower and Agri-industrial partners in proving and adopting its CO2 technologies for specific growers’ plant yield needs.

The CO2 technologies work by transferring CO2 gas into water and foliar spraying across the entire plant leaf surface area, which is a semi permeable membrane. The dissolved concentrated CO2 then penetrates a leaf's surface area naturally like nicotine naturally dissolves through human skin from a nicotine patch.

Foliar spraying natural nutrients and chemicals on plant leaves has been used for over 60 years by millions of indoor and outdoor plant growers. To date, outdoor growers have not had any way to enhance plant CO2 gas uptake for faster growth.

Indoor use of CO2 gassing has enhanced plant yields for over 60 years. However, over 50% of the CO2 gas is typically lost through ventilation. Current greenhouse CO2 gassing levels of up to 1500 PPM are also not ideal for worker health and safety. GROW's safer dissolved CO2 foliar spray can be used by indoor and outdoor plant growers with minimal CO2 gas lost.

Forward-Looking Statements This news release may contain forward-looking statements that are based on CO2GRO's expectations, estimates and projections regarding its business and the economic environment in which it operates. These statements are not guarantees of future performance and involve risks and uncertainties that are difficult to control or predict. Therefore, actual outcomes and results may differ materially from those expressed in these forward-looking statements and readers should not place undue reliance on such statements. Statements speak only as of the date on which they are made, and the Company undertakes no obligation to update them publicly to reflect new information or the occurrence of future events or circumstances, unless otherwise required to do so by law.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

For more information, please visit www.co2gro.ca or contact Sam Kanes, VP Business Development at 416-315-7477.

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dmvA Suspends Greenhouse For Urban Farming Over Steel Rods In Belgium

September 28, 2018

house tp is located in the working-class area in mechelen, belgium – a local woman with green fingers bought there a little house next to the church and asked dmvA to reconstruct it. due to the specifics of the site and the client’s requirements, the architects have created a levitating greenhouse in the home’s courtyard. 

the client had the desire to do urban farming, which is not evident in the center of the city. moreover, the plot was fully built and the backside is oriented north, being in the shade of the house most of the time. a green spot behind the house seemed difficult to create due to the lack of sunlight. dmvA, therefore, decided to remove the rear of the building, except for one steel beam.

the beam inspired the architects to add some extra beams and place a greenhouse on top of them. by hanging the structure up in the air, dmvA found a solution to the lack of illumination that ensured the patio to stay bright and light. as there is less light reaching the ground floor due to the orientation of the house, the bedroom is downstairs, while the living room is upstairs. next to the patio, there is a small living space that can also be used as a bedroom in the future.

 by removing all interior walls and creating open spaces, the house seems larger than it is, despite its small living area of 80 square meters. the stairs are always placed on a side of the building so that the open spaces would not be disrupted.

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Controlled-Environment Farming Advancing With Improved Technologies

Dr. Paul Ulanch, left, executive director of the crop commercialization program at the North Carolina Biotechnology facilitated a discussion on controlled environment agriculture with Michael Barron with AeroFarms, Dr. Ricardo Hernandez with North Carolina State University, and Dr. Matt DiLeo with Elo Life Systems.

TECHNOLOGY>BIOTECHNOLOGY

Controlled environment agriculture is viewed as another important technology to feed a growing world population.

John Hart | Oct 05, 2018

Thanks to advances in LED (Light Emitting Diodes) lighting, producing crops indoors is now a reality. But will indoor agriculture replace outdoor farming as the technology progresses?

Speakers at a forum on indoor production systems or controlled environmental agriculture held at the North Carolina Biotechnology Center in Research Triangle Park, N.C., agreed that the new technology is just one more tool needed to feed a growing world population, but it will never replace conventional outdoor agriculture. However, they all see great promise for the technology.

“I’m excited about controlled environment agriculture. There is a lot of potential now that we can control these environments and cater to what the plants really need. We can focus a lot more on quality traits, on flavor and nutrition,” said Dr. Matt DiLeo, director of Elo Life Systems, based in Research Triangle Park, N.C.

DiLeo said controlled environment agriculture combined with a suite of new technologies that includes gene editing, genotyping and gene discovery will drive forward improvements in crops faster than has been possible with previous generations of technology.

AeroFarms is a Newark, N.J.,-based company that produces greens in a converted steel warehouse that does not require sunlight or soil. The company has built indoor farms that can produce food using a technology called “aeroponics.” Plants are not grown in soil, but in air canals spayed with water mist. This provides the roots with the necessary water to grow.

AeroFarms is marketing Dream Greens, a retail brand of blends of baby greens that feature baby kale, arugula, ruby streaks and baby watercress produced through the indoor farming system.

Michael Barron, director of research and development for AeroFarms, emphasized the technology is not designed to replace conventional agriculture, but to add to it. 

“It is one more step in feeding more people. We don’t see ourselves replacing field faming. It’s more of a complement to current systems. There are a lot of innovations that are needed to address food security worldwide, and this is just one of many advances that will be taking place,” he said.

“With the increased control you can produce more, and you can also have it be higher quality. You can change the nutrition of it. There is lot more you can do. It gives you a lot more control over the crop and the production of the crop,” Barron said.

In fact, Barron notes that with the advances AeroFarms has made in its production system, the growing cycle of producing baby greens has been reduced from 30 to 45 days in the field to two weeks under controlled environment conditions.

Meanwhile, DiLeo points to the benefits-controlled environment agriculture can offer to plant breeding, particular in improving the quality, flavor and nutrition of produce.

“For those involved in breeding, it’s a pretty tough environment out there for plants. Breeders first focus on yield because wherever you are growing your crop, you need to have it survive and produce enough so farmers can make money,” DiLeo said.

“After that you have to have storage and shipping traits because you may be sending your fruits and vegetables 2,000 miles away. They might have to sit in storage for six months or longer. And only after that is quality, flavor, nutrition. As important as that is that comes way below these other practical concerns.”

Through controlled environment agriculture, food can now be grown right next to where the consumer lives and at any time of the year. “That’s going to give us on the breeding and genetics side the ability really to focus on quality in a way that was never really possible before” he said.

DiLeo said controlled environment agriculture will make the breeding cycle faster and produce crops that offer the diversity of flavors and nutritional qualities consumers demand.

At North Carolina State University, Dr. Ricardo Hernández, associate professor in the Department of Horticultural Science, is leading research efforts on controlled environment horticulture. His work focuses on indoor production systems, including greenhouses, vertical farms/plant factories and tissue culture.

Hernandez notes that improvements in LEDs allow scientists to focus on the effect of light quality or spectrum, light intensity and the interaction of light with other environmental factors to produce crops indoors.

“Controlled environment agriculture increases the amount of product you can get for every kilowatt hour of energy,” Hernández explains.

“By doing this, we like to see the interaction between the different components that compromise plant growth such as light, light quality, air velocity, C02, humidity and temperature and then see through a combination of these if we can actually reduce the amount of light needed and increase the amount of grams produced for every kilowatt hour.”

Like Barron and DiLeo, Hernandez emphasizes that indoor farming or controlled environment agriculture is just one more tool to increase global food production and will not replace, but complement conventional agriculture.

TAGS: CROPS TECHNOLOGY VEGETABLES FRUIT

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Farming The Cities: An Excerpt From Nourished Planet

The following is an excerpt from Nourished Planet: Sustainability in the Global Food System, published by Island Press in June of 2018. Nourished Planet was edited by Danielle Nierenberg, president of Food Tank, and produced with support from the Barilla Center for Food & Nutrition.

The following is an excerpt from Nourished Planet: Sustainability in the Global Food System, published by Island Press in June of 2018. Nourished Planet was edited by Danielle Nierenberg, president of Food Tank, and produced with support from the Barilla Center for Food & Nutrition.

By 2050, 70 percent of the world’s people are expected to live in urban areas, and if we’re going to feed all those people, we’ll need to continue to make cities and towns into centers of food production as well as consumption. Worldwide, there are nearly a billion urban farmers, and many are having the greatest impact in communities where hunger and poverty are most acute.

For example, the Kibera Slum in Nairobi, Kenya, is believed to be the largest slum in sub-Saharan Africa, with somewhere between 700,000 and a million people. In Kibera, urban farmers have developed what they call vertical gardens, growing vegetables, such as kale or spinach, in tall empty rice and maize sacks, growing different crops on different levels of the bags. At harvest time they sell part of their produce to their neighbors and keep the rest for themselves.

The value of these sacks shouldn’t be underestimated. During the riots that occurred in Nairobi in 2007 and 2008, when the normal flow of food into Kibera was interrupted, these urban “sack” farmers were credited with helping to keep thousands of women, men, and children from starving.

The role urban farmers played in saving lives in Kibera is probably only a precursor of things to come. In large parts of the less developed world, as much as 80 percent of a family’s income can be spent on food. In countries where wars and instability can disrupt the food system and where the cost of food can skyrocket overnight, urban agriculture can play a fundamental role in helping prevent food riots and large-scale hunger. In that respect, promoting urban agriculture isn’t only morally right or environmentally smart, it’s necessary for regional stability.

But urban agriculture isn’t important only in sub-Saharan Africa or other parts of the developing world. In the United States, AeroFarms runs the world’s largest indoor vertical farm in Newark, New Jersey, where it grows greens and herbs without sunlight, soil, or pesticides for local communities in the New York area that have limited access to greens and herbs. Another group, the Green Bronx Machine, which is based in New York City’s South Bronx neighborhood, is an after-school program that aims to build healthy, equitable, and resilient communities by engaging students in hands-on garden education.

Across the Atlantic, in Berlin, Germany, a group called Nomadic Green grows produce in burlap sacks and other portable, reusable containers. These containers can be set up in unused space anywhere, ready to move should the space be sold, rented, or become otherwise unavailable. In Tel Aviv, Israel, Green in the City is collaborating on a project with LivinGreen, a hydroponics and aquaponics company, and the Dizengoff Center, the first shopping mall built in Israel. This collaboration provides urban farmers with space on the top of the Dizengoff Center to grow vegetables in water, without pesticides or even soil. Green in the City also provides urban farming workshops and training in the use of individual hydroponic systems.

Click HERE to purchase Nourished Planet today! Food Tank readers can enjoy a 20 percent discount with promo code: FOOD.

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Vertical Farms In China Provide Food For 36,000 DAILY

Farmers in Zhejiang Province have designed 'smart' vertical farms which allow vegetables to be grown without much soil or sunlight. Plants are provided with nutrient solutions through an intelligent control system. A shorter growing season and a ban on pesticides also make smart farms more environmentally friendly.