Vertical farming: are things looking up for the future of agriculture?

There are some significant challenges facing the UK agriculture industry. For instance, labour shortages and the lack of post-Brexit EU Funding.¹ One of the industry’s biggest challenges is the pressure to reduce reliance on imported goods. Additionally, there is a need to adopt more sustainable land management practices.¹

The most significant medium to long-term risk to the UK’s domestic food production comes from climate change. Other environmental pressures also contribute to this risk, including:

• soil degradation;
• water quality;
• and biodiversity.²

Vertical farming provides a unique alternative to traditional farming methods. It operates independently of seasonal and market-led forces. The global vertical farming market is expected to grow at a compound annual growth rate of 10.3% by 2028.³

What is vertical farming?

Also known as controlled environment farming, vertical farming involves growing crops and food produce in stacked vertical layers. This process takes place in a controlled environment.

Usually, this means crops are grown on a horizontal surface, but there are multiple layers. However, some vertical farming systems grow plants directly onto a vertical or nearly vertical surface. This approach varies depending on the crop type.

What are the benefits of vertical farming?

Vertical farming has gained significant attention in recent years as a potential solution to some of the challenges facing traditional agriculture. This method is sustainable and requires fewer resources. Including less land, water, and labour. It also allows for the capacity to grow crops all year round.

Vertical farming operations have been established across the country. The UK’s biggest vertical farm in Essex opened for business earlier this year.⁴ Around 46% of all food consumed in Britain is imported. So, the vertical farming method hopes to significantly reduce the country’s carbon footprint by growing it here instead.⁵

1. Year-round production

Controlled conditions make vertical farming efficient and effective under any given climate. They are not affected by storms or extreme weather events like conventional farms. This allows them to produce seasonal crops all year round.⁶

2. Less energy consumption

Fully automated indoor farming systems are powered by the sun instead of LED lighting. As a result, crops are not reliant on fossil fuels or other less ideal energy sources.⁷

3. Reduced carbon footprint

Indoor farming brings food production closer to consumers, reducing travel mileage.⁸

4. Less water waste

Farmers can use 98% less water and 99% less land. They can produce crop yields of 240 times that of traditional farms through year-round rolling or perpetual harvest.⁶

5. Reduced use of pesticides

Vertical farms reduce the need for pesticides and herbicides. The controlled environments used in vertical farms help prevent pest infestations. They also reduce the risk of disease outbreaks.⁵ Because the plants are grown inside, there’s no danger of fertiliser run-off polluting nearby rivers either.

What are the challenges of vertical farming?

One of the biggest challenges with vertical farming is the energy costs. The industry is extremely vulnerable to increases in electricity prices. The technology required to set up an indoor farm is expensive, with substantial upfront costs. Production costs can be reduced by using renewable energy sources, such as solar panels.

A premium vertical farm can cost up to 750% more than a basic glasshouse. While glasshouses typically range from £400 to £1,000 per square metre, a vertical farm usually starts at a minimum of £2,000 per square metre. For a high-tech, closely controlled system, the cost can rise to £3,000 per square metre.⁹

However, several government funding programmes are available to support vertical farming businesses. These programmes also assist in growing and expanding existing operations.¹⁰

Further to this, while it is possible to grow almost any crop in a vertical farm, it is currently only cost-effective to grow leafy greens such as:

• lettuce;
• small vegetables;
• fruits;
• and high-value herbs.

These crops are quick to produce, making them more viable for vertical farming.¹¹

While there are challenges associated with vertical farming, it offers a promising future for sustainable agriculture. This method presents many benefits over traditional farming practices.

Contact our farming experts for help and advice about insuring your vertical farm.

Sources

1. agrirs.co.uk/main-challenges-facing-the-uk-agricultural-sector 
2. gov.uk/united-kingdom-food-security-report-2021-theme-2-uk-food-supply-sources  
3. mordorintelligence.com/vertical-farming-market 
4. itv.com/news/inside-the-uks-biggest-vertical-farm-could-this-be-the-future-of-farming 
5. timeout.com/the-worlds-largest-vertical-farm-is-being-built-in-the-uk 
6. crowe.com/vertical-farming 
7. edengreen.com/what-is-vertical-farming 
8. verticalfarmingplanet.com/vertical-farming-in-the-uk-industry-overview 
9. savills.co.uk/research_articles/229130 
10. ukstartups.org/government-funding-for-a-vertical-farming-business 
11. bbc.com/future/what-if-all-our-food-was-grown-in-indoor-vertical-farms

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