What is Vertical Farming, what are the top vertical farming stocks to buy, and what should you know about investing in Vertical Farming ?.
There are more mouths to feed as the world’s population rises. In agriculture, this has created some significant difficulties. But we’ve persisted in innovating and succeeding. Stocks related to vertical farming are the next great investment opportunity.
Farmland has always been an excellent place to invest. That has proven to be a wise maxim for investors. However, the way we manage land today is very different. Crop yields are rising as new methods of precision farming take hold. Additionally, we now have the means to grow food more effectively indoors.
What is Vertical Farming?
Vertical farming, just as the name implies is growing food in layers that are piled vertically. The technique may make use of soil, hydroponic, or aeroponic growing techniques.
Top Vertical Farming Stocks to Buy.
Here’s a list of some vertical farming stocks to buy.
1. AppHarvest (Nasdaq: APPH).
Some of the biggest indoor farms in the US are found at AppHarvest. This stock has two 60-acre indoor farms are present. The first is near Richmond, and the second is in Morehead, Kentucky. Additionally, the business operates a 15-acre indoor farm in Berea, Kentucky.
AppHarvest is attempting to grow fresh fruits, vegetables, and leafy greens with the help of these farms. Although it is still in its infancy, the potential is enormous. The business combines cutting-edge technology with traditional agricultural methods.
Sustainability is a major advantage of this vertical farming stock. There is no agricultural runoff because indoor cultivation makes it climate-resilient. Additionally, it consumes up to 80% less water than conventional agriculture.
2. Scotts Miracle-Gro (NYSE: SMG).
Scotts Miracle-Gro isn’t a direct play in terms of stocks for vertical farming. It offers a variety of goods and services. However, it has achieved significant advancements in hydroponics and precision planting. For indoor vertical plant growth, both are essential.
Sunlight Supply was acquired by Scotts Miracle-Gro in 2018, according to the company. The purchase price for the hydroponics supplier was $450 million in cash and equity. AeroGrow International, a manufacturer of hydroponics, was also purchased by Scotts in 2020.
Despite having a number of well-known brands, Scotts Miracle-Gro isn’t content to sit back and relax. The business is improving its goods for indoor farming. It includes connections with top academic institutions and more than 100 research scientists, specialists, and engineers on staff.
This contributes to Scotts Miracle-status Gro’s as a leading vertical farming business. It serves both little and big growers and is in a good position to expand, this makes it one of the best vertical farming stocks to buy.
3. CubicFarm Systems (OTC: CUBXF).
1.3 billion tons of food perish in transit each year, according to CubicFarm Systems. With contemporary technology, it is no longer essential for us to ship food over such huge distances. Automated growth equipment is made and sold by CubicFarm. Fresh vegetables, wholesome livestock feed, and plant propagation are all done with them.
Hydroponic technology is also used by CubicFarm. Complete indoor agricultural systems are offered. The business also employs advisors for vertical farms. They assist in conducting research and offering clients answers. Additionally, CubicFarm has a seasoned leadership group.
The Canadian company CubicFarm is a smaller one if you choose to invest in its stock. Its headquarters are in British Columbia, and the Toronto Stock Exchange is where its stock is traded (TSX). However, you can also purchase shares on American over-the-counter (OTC) marketplaces.
At least when it comes to trading publicly, AeroFarms doesn’t have much of a track record. A SPAC was the company’s intended method of going public.
Planned merger of AeroFarms and Spring Valley Acquisition (Nasdaq: SV). However, the business said that the merger arrangement was over. Nevertheless, this is a fascinating vertical farming business to follow. There is still a chance that it will eventually become a publicly-traded vertical farming stock.
The pioneer in vertical farming, AeroFarms was established in 2004. It assists in addressing problems caused by population increase, water scarcity, the loss of arable land, and supply chain hazards. In comparison to conventional farming, AeroFarms also produces up to 390 times more productivity per square foot.
AeroFarms employs a data-driven strategy to achieve this. Every harvest, plant experts keep an eye on millions of data points. Patents have also given the business some protection.
Investing in Vertical Farms.
Innovative farming is well-represented by the aforementioned businesses. Along with the growth in the global population, indoor growth will also increase. Additionally helpful are the campaigns for sustainability and green stocks.
This is becoming a reality due to developing technology. While some costs are declining, production output is rising. Additionally, quality control is being refined even further. Issues with the food supply chain are being lessened by indoor farming.
The stocks of vertical farming discussed above may therefore have high returns in the future. You will probably profit from these businesses whether or not you invest.