Technology

Indoor agriculture has many advantages, but it also needs cheap land, and cheap energy. That usually means a balance between close to major urban centers, but far enough away to have a lot of room (including solar). Greenhouses, even tall ones, with multiple stories is the path to go. Solar and owning land means complete cost certainty for energy.

Advantages include low water, pesticide, fungicide, long growing season, high yields, and resilience to climate. It is global south and high north that need the resilience, and who have the most threatened agriculture states.

I never understood the economics of those Agtech.

The margins on vegetables are shit.

Consumers won't care that each of your potatoes had it's own email addresse, a twitter account and was monitored by an AI.

Farmers are not just redneck assholes who needed some MIT grad to tell them how to increase yield, there's already a huge agro industry and research and we've reached a point where the yield of carrots and others is pretty much already maximised. Assuming they are genius and get a 1% yield improvement that would be enormous.

A farm hand cost $25k a year, and engineer cost $150k and you haven't priced in the tech and the building...

So you basically get a business where the cost of operation is about 20 time higher (and that's conservative) than a guy with a plot of land and a tractor for sensibly the same yield (if not worse) and zero product differentiation in the market.

Well, I guess they just figured out the economics...

Turns out land is still cheap and sunlight still generally free.