Developing an Economic Estimation System for Vertical Farms

Abstract

The concept of vertical farming is nearly twenty years old, however, there are only a few experimental prototypes despite its many advantages compared to conventional agriculture. Significantly, financial uncertainty has been identified as the largest barrier to the realization of a ‘real' vertical farm. Some specialists have provided ways to calculate costs and return on investment, however, most of them are superficial with calculations based on particular contextual circumstances. To move the concept forwards a reliable and flexible estimating tool, specific to this new building typology, is clearly required. A computational system, software named VFer, has therefore been developed by the authors to provide such a solution. This paper examines this highly flexible, customised system and results from several typical vertical farm configurations in three mega-cities (Shanghai, London and Washington DC) are used to elucidate the potential economic return of vertical farms.

A Collaborative Decision Support System Framework for Vertical Farming Business Developments

“…Currently, detailed financial analyses of CapEx, OpEx and revenues have been hard to produce, due to the complex nature of combining architecture and agriculture (Shao et al, 2016). Calculations tend to be for a particular scenario, and they are difficult to generalise (Shao et al, 2016). From an investment perspective, a clear plan for profitability is required (Agroecology Capital, 2019).…”

“…What can be done to reduce the barriers to entry and ensure sustainable growth of an incipient industry still finding its feet? Two clear needs are i) bridging the knowledge between various sectors (such as lighting, greenhouse management, architecture, policy, etc) and ii) developing a robust and flexible economic analysis (Shao et al, 2016).…”

“…Developing a communication mode with end-users i.e. combining "push" and "pull" systems One challenging decision for farms is setting a fixed price for crops (Tweeten & Thompson, 2009) which strongly influences the ROI of vertical farms (Shao et al, 2016). This requires collaborative planning across different farms and recent research recognises the implementation of collaboration mechanisms to drive sustainability within fruit and vegetable supply-chains (Dania et al, 2018).…”

Where is the business? A study into prominent items of the Vertical Farm Business Framework

“…However, the very diverse developments with demand, and shortage of skilled workers make the high investments risky, and funders hesitant (Michael, 2017). Due to its newness, the huge variety in VF-formats (Kozai, 2018), and the commercial sensitivity of data, there is still little to no public information regarding feasible business formats, tential (Shao et al, 2016). Therefore, this paper develops a conceptual business framework of the VF, with the aim to raise our understanding of the major, generic items of VFs as a commercial endeavour.…”

Testing vertical distance and growth medium for vertically farming bush beans (Phaseolus vulgaris L.) and tomatoes (Solanum lycopersicum L.) in urban agriculture

“…As urban population grows and arable land declines, vertical farming can locally provide an interesting approach for sustainably growing fresh produces for the family and the community (Kalantari et al, 2017;Banerjee and Adenaeuer, 2014). However, the profitability of the technology is still debated although recent research findings validate its viability (Eaves and Eaves, 2018;Shao et al, 2016).…”