12 June 2024
Vertical Reality? The Future of Urban Farming
For centuries, farmers have explored ways to grow more in less space and with less soil. Today, the need to achieve this has never been greater, as climate change is causing increased stress on our food supply. Transforming pockets of our urban jungles into urban farms could be one part of the solution.
In this article, we explore:
- The need for sustainable crop production as urban areas expand into surrounding green spaces.
- Controlled Environment Agriculture (CEA) as an answer to food insecurity.
- The benefits of vertical farming and how this method is already being successfully implemented.
- The opportunities and risk considerations of vertical farming infrastructure for property owners.
More than 9 billion mouths to feed: the need for sustainable crop production
Just as the Green Revolution of the 1960s brought about the widespread adoption of agrochemicals and more productive breeds of crops, today, we are facing an agricultural turning point. This time, the focus is on how we produce sufficient, quality crops sustainably in a world that is becoming increasingly urbanised to accommodate a booming population.
By 2050, the world’s population is projected to reach 9.7 billion, compared with 8.1 billion today. In the three most populated nations — India, China and the United States — the urban population currently stands at 36%, 65% and 85% respectively.
Given these predictions, crop production will have to outpace population growth as the developing world grows more prosperous and its urban spaces become more crowded. Alternative agricultural techniques will need to be embraced to address environmental challenges and the reality of food insecurity.
Mother nature versus the controlled environment
Today, many types of urban farming are being developed to meet the growing demand for premium, locally sourced food. These range from rooftop farms and community gardens to Controlled Environment Agriculture (CEA) — an umbrella term that encompasses a range of systems and techniques that take a technology-based approach to farming. For example, smart technologies can be used to monitor and remotely manage greenhouses, or crops can be grown in vertically stacked layers in controlled, indoor environments — known as vertical farming.
In vertical farming, optimal conditions for plant growth can be achieved by precisely controlling temperature, humidity, light intensity, and nutrient levels. The method can incorporate soilless farming techniques, such as hydroponics, which relies on a nutrient-rich solution for crop production, and aeroponics, which uses only air and mist to grow plants.
Through automated systems, artificial intelligence, and data analytics, every aspect of the growing environment can be monitored and regulated — increasing efficiency and enabling the year-round cultivation of crops. It is the perfect example of nature and technology working hand in hand.
Benefits of Vertical Farming
Shortens the ‘farm to fork’ journey: With minimal land space required, food can be grown near (or within) cities, delivering fresh and nutritious produce quickly to urban dwellers — often within 24 hours of harvesting.
Year-round crop production and higher yields: Vertical farming mitigates climate spikes, extreme weather events, and pest-related threats to facilitate crop growth 365 days a year. The intelligent use of space means crop yields can be 50-100 times more per square foot than in traditional farming.
Environmental benefits: Can ease the burden on natural resources, for example, by addressing water scarcity through the use of soilless cultivation methods and renewable energy as a power source. Food miles and supply chain emissions can be reduced, along with the need to freight vast quantities of packaged food.
Encourages the redevelopment of land and urban spaces: The ability to retrofit vertical farming infrastructure into existing buildings, such as factories and warehouses, offers endless opportunities for developing land and repurposing property.
A global solution to a growing concern
Vertical farming is gaining momentum and is predicted to be worth USD35.3 billion by 2037 — a considerable rise from its worth USD8 billion today. Globally, the biggest vertical farming market is the United States, and growth is expected to accelerate in other countries with limited space, such as Singapore, or with a challenging climate, like those in the Middle East.
In 2022, Abu Dhabi laid claim to the title of world’s largest indoor farm, with the GreenFactory Emirates facility able to grow around 10,000 tonnes of fresh produce a year in its 8,200 m2 (88,260 square foot) facility. The following year, Seasony, based in Copenhagen, Denmark, announced a further EUR1.5 million in investment to aid in its mission bring ‘the best of mobile robotics automation’ (known from its use in Amazon warehouses) into vertical farming. Meanwhile, Plenty established the Plenty Compton Farm in California, USA, calling it ‘the world’s most technologically advanced indoor vertical farm’, driving an ‘industry-leading’ yield of up to 350 times the yield per acre of a conventional farm.
In the UK, Jones Food Company (JFC) announced the opening of its second vertical farm, JFC2, near Lydney in Gloucestershire in early 2024. The company claims it is ‘the most advanced vertical farm in the world’, using 100% renewably sourced energy and utilising the equivalent space of 96 tennis courts stacked on top of each other.
Today, Bustanica, in Dubai, is believed to be the world’s largest vertical farm, established in 2023 with 330,000 square feet (30,650 m2) of growing space, and situated next to Dubai’s Al Maktoum International airport. It grows one million kilos of leafy greens per year and has recently been fully acquired by Emirates Flight Catering.
There is little doubt that more substantial and innovative examples of vertical farming are on the horizon. The US, Canada, Germany, Italy, Portugal, Japan, Singapore, and Nigeria all appear on the 2024 watch list for urban farming start-ups, with most adopting vertical farming methods.
One thing is certain - urban farming is set to redefine food production as we know it
Transforming commercial and residential space: a property owner’s perspective
The design of vertical farms makes them easy to slot into practically any urban environment, from an existing factory to an office block or underground space. This can make them a viable option for property owners looking for new, sustainable opportunities.
Vacant office space across the UK stands at 102 million square feet, its highest level since 2014 and 65% above its pre-pandemic level in March 2020. As vertical farming becomes more widely used, there will be an increase in tenants looking for suitable urban spaces, presenting an ideal opportunity for commercial landlords to explore this route. Not only do vertical farms lend themselves to practically any urban structure, but they can also happily take the spaces that are typically difficult to rent.
In the residential space, too, there are opportunities. Having a communal vertical farm in a multi-tenanted residential building, for example, can foster engagement between residents, attract good-quality tenants, and contribute to a sense of belonging (thereby increasing the likelihood of long-term leases). A roof/attic space, a disused basement, or a ‘farm wall’ in a shared space are just some of the possibilities.
When it comes to urban/vertical farms the physical insurance risk considerations are much the same as many other sustainability measures being retrofitted/implemented in buildings.
For the retrofit of buildings, if this is going to lead to a change of use of the asset, this is as mentioned a material fact that will need to be presented to the insurer. Additionally, it will likely bring with it different risk considerations in terms of fire and water exposures. Introducing additional elements such as UV lights in conjunction with flammables (such as the crops/supporting infrastructure that will house the crops) will need close attention and consideration from an insurance perspective.
On the farming side of things, there are a number of new considerations that clients need to consider, such as;
- Environmental exposures – consideration will need to be given to the farming methods used, impact on the local water supply and associated potential risks
- Mould/bacteria/fungi risks – anything that could damage/kill the crops
- Supply chain risks – issues from their supply chain preventing onward sales of the goods.
One thing is certain — urban farming is set to redefine food production as we know it. And, along the way, it will play a significant role in breathing new life into our urban spaces.
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