Last year was a momentous year for the movement,
as government entities and large-scale investors alike
showed unquestionable interest in both the financial
and societal benefits of urban agriculture. To tie it all
together, rapid progressions in cultivation technology
have made certain commercial applications of
controlled environment agriculture (CEA) profitable for
the first time. Yet it’s still fairly difficult to pinpoint how
this forward momentum will sustain itself, and just how
fast the industry is growing overall.
Funding and Growth
Sophisticated investment parties are increasingly
looking to the urban farming sector for viable financial
growth opportunities. Plenty, a vertical farming
corporation, received unparalleled capital in August
2017. The San Francisco-based company received
$200 million in Series B funding, making the deal
the largest agriculture-tech funding round in history.
Behind the massive financial backing is the Softbank
Vision Fund, a financial operation representing some of
the world’s savviest investors. All in all, Plenty’s jump
into the limelight of Wall St.-level finance speaks to the
growing attention the urban farming sector is receiving
on a number of levels.
In the highly money-driven culture of modern America,
large-scale funding efforts, like seen with Plenty, set
the stage for additional public interest. Along this
line of thought, sophisticated investment parties
are generally more in the know than the average US
citizen concerning business trends, including trends
tied with food procurement. On this note, industryleading
business people and intellectuals alike feel
the investment makes indoor agriculture even more
commonplace. Interestingly — and seemingly against
the profit-driven norms of large-scale financial interests
in America — the Plenty funding situation infuses
capitalist economics with a movement rooted in solving
global issues about healthy eating, food sustainability,
and environmental awareness. That being said, this
situation might present a rare case where keeping up
with the Joneses means developing an appreciation
for local, sustainable food production. If the financial
figures surrounding the Plenty deal are any indication,
vertical farms could become a standard source of
produce in years to come.
Government Policy
The urban farming movement has also gotten the
attention of key US political figures. In September
2016, Michigan Senator Debbie Stabenow introduced
the Urban Agriculture Act to US Congress. This
unprecedented legislation set forth to amend the
USDA’s Farm Bill by implementing government
programs within the urban farming sector, essentially
giving them similar rights and perks as traditional
farms. While Stabenow’s bill expired, Ohio
Congressional Representative Marcy Kaptur kept
urban farming legislation alive in the current session
of Congress with sponsorship of the Urban Agriculture
Production Act of 2017. Yet, many experts don’t see
urban farming as a major priority for the conservative
decision makers, which seriously lessens the chances
the bill will get voted into action. Nonetheless, the
simple fact the urban agriculture movement has gained
the attention of US policy makers speaks to its overall
advancement into a mainstream industry.
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