(AeroFarms, 2020)

AeroFarms – Vertical Farming

CASE ANALYSIS

JoAnna Monfils
November 2020
BUS 771
Table of Contents
Executive Summary 2
Introduction 2
Situation Analysis - External Analysis
Competitive Analysis (PESTEL) 4
Porters Five Forces 5
Opportunities and Threats - SWOT 6
Situation Analysis - Internal Analysis
Strength and Weaknesses - SWOT 7
Strategic Focus & Recommendation 7
Business Process Change 9
Addendum - COVID 9
Summary 9
Appendix 11
Figure 1: Indoor Vertical Farming Technology 11
Figure 2: State Legislations on Urban Farming 11
Figure 3: Comparative Situation Analysis of the Competitors 16

Figure 4: AeroFarms SWOT Analysis 17

Work Cited 18

1
 (AeroFarms, 2020)
Executive Summary
The world population is expected to reach 9 billion by the year 2050 (Stark, 2019). How will we
have a sustainable future for the rising population? The space needed for people to live and the
food to survive will become scare. The traditional farm fields will be sold to create living space
for individuals and with that less fields will be available for growing produce. The need for an
alternative to traditional farming is a must, and one of those is vertical farming. AeroFarms is
one of the largest indoor vertical farming companies in the world today. Their ninth farm located
in Newark, NJ has become their Global Headquarters with over 70,000 sq. ft. harvesting up to 2
million pounds of fresh produce per year (AeroFarms. 2020). One of the major problems
associated with vertical farming is the large upfront cost of capital to get a farm up and running.
With the high cost of creating a vertical farm, the selling of the produce is slightly higher than
produce grown from the traditional farmer (AeroFarms, 2020). Vertical farms must create
economies of scale and take advantage of marketing opportunities to be able to lower the costs
for producing product and decrease prices to attract more customers. This case study is aimed
at determining what opportunities vertical farms can take advantage of to help minimize costs
to get their products out on the market quicker, cheaper and in more locations around the
world.

Introduction
By the year 2050, the world population is expected to increase by 25% from the year 2020. With
this increase in people where will they build and what will they eat? With new homes and
commercial spacing being built on what was once farm land the reduction in food production is
vastly decreasing. Therefore, the need to create a sustainable future is even more important. The
answer is a newer concept called vertical farming. Vertical farming has 390 times greater
productivity per square foot annually versus the traditional farm fields (AeroFarms, 2020). All
while using less water and zero pesticides (AeroFarms, 2020). The use of data science allows
vertical farming to take a “smart” approach to farming. These smart approaches AeroFarms
takes advantage of are listed below.

Smart Aeroponics
These farms used sensing technology and data science to determine the exact food and
nutrients the plants need, called Smart Aeroponics. The aeroponics closed loop system mists the
roots of the greens with nutrients, water, and oxygen. Due to the nature of using a closed loop
system is allows the water to be reused making it 95% more efficient that field farming. A
diagram of this system can be viewed in Figure 1: Indoor Vertical Farming Technology.
(AeroFarms, 2020)

Smart Lighting
LED lights are used to create an individual light recipe for each growing plant. This gives the
greens the exact spectrum, intensity, and frequency they need to achieve the most energy-
efficient way for photosynthesis to occur. The smart engineered lighting helps in controlling all
the physical properties of the plant including the, size, shape, texture, color, flavor, and nutrients.

2
Quality control and increased productivity are the benefits of using this smart technology.
(AeroFarms, 2020)

Smart Nutrition
The macro- and micronutrients are studied to determine what is needed to be allowed to thrive.
By doing this, the same seeds that were planted in fields can be grown in half the time as
traditional farming. Leading to 390 time more productivity per square foot than the traditional
farming environment. (AeroFarms, 2020)

Smart Data
Plant biology has never been studied in such detail before smart data technology was available.
The unique capability allows plant scientists to monitor millions of different data points with
each and every harvest. Scientists, “are constantly reviewing, testing and improving the growing
system using predictive analytics to create superior and consistent results” (AeroFarms, 2020).
This smart system brings the old world of agriculture into the future of farming at an alarming
rate. (AeroFarms, 2020)

Smart Substrate
A patented reusable cloth medium used for seeding, germinating, growing, and harvesting the
plants was developed by AeroFarms scientists. The cloth medium is made up of recycled water
bottles and acts as a barrier between the mist and the plants. Rougly 350, 16.9 oz water bottles
are removed from the waste stream to create the cloth medium. Each of these can be reused
and are sanitized in-between so there is not risk of cross contamination. (AeroFarms, 2020)

Smart Pest Management

Since vertical farming takes place indoors where the usual pests are not present, minimizing this
risk. The indoor growing methods disrupt the normal lifecycle of most indoor pests which means
they never have time to start affecting the plants. (AeroFarms, 2020)

Smart Scaling
AeroFarms ability to fully customize their growing operations allow many different
configurations to take place when change is needed. The systems are like building blocks that
can be stacked vertically or lengthwise. This provides maneuverability to grow anywhere, in any
size locations no matter the building square footage or the external environment. (AeroFarms,
2020)

AeroFarms mission is to transform what we knew of agriculture into something of the future.
These environmentally responsible farms enable highly-controlled production of plants at a
commercial scale that will nourish the communities they support with safe, nutritious and
delicious food. (AeroFarms, 2020)

3
External Analysis
For this case an external analysis has been performed. The three analytical tools used are the
PESTEL Analysis, Porter’s Five Forces and SWOT Analysis.

Competitive Forces Analysis (PESTEL)

In the vertical farming industry, AeroFarms, has a plethora of opportunities. However, to
understand the correct way to move forward increasing profits and expanding their market
share, they must dig deeper into their external environment and look at the political, economic,
social, technological, environmental and legal issues that could impact their business.

P (Political): Government policies can greatly affect vertical farming. Urban Agriculture State
Legislations policymaking encourages activities to support agricultural processors, distributors,
and marketing. There has been a creation of state-wide food policy councils, task forces, and
other bodies to help in the promotion and encouragement of such things as vertical farming
through figuring out appropriation of funds and establishment of grants (NCSL, 2019). Many
states have legislations to help urban agriculture (which includes vertical farming), some of these
can be viewed in more detail in Figure 2: State Legislations on Urban Farming (NCSL, 2019).

E (Economic): The economic state can introduce or remove opportunities for selling or gaining
new market share. In tough times the ability for consumers to purchase fresh produce might be
scarce and they end up opting for the cheaper version, frozen or canned. This can directly affect
the profits of vertical farms such as AeroFarms. A recent study conducted by 210 Analytic in
conjunction with the FMI Fresh Executive Council released information about what the average
consumer is looking for when purchasing fresh fruits and vegetables. The study found, the
average person, feels as if the most important aspects when making a decision to purchase to
be freshness, quality, and price when purchasing fresh fruit and vegetable (Stein, 2015). Also
when the product meet the customers’ expectations, they are highly more likely to impulse buy
(Stein, 2015). AeroFarms offers both quality and freshness to their customers, which gives them
an advantage over some offering in the local produce isle. However, their prices can be seen as
slightly higher due to the production costs and could cause them to fall short in bad economic
times. With the correct marketing plan a vertical farms opportunities lies in the non-GMO, no
bio solids or irradiation, and superior quality to attract a broad range of customers.

S (Social): The higher population demands and rising costs of goods will make conventional
farming difficult to sustain offering a social aspect of vertical farming companies to help provide
for their local communities. Fresh food is often times more expensive than purchasing canned or
frozen, which keeps many of the fresh variety out of reach for low-income families. Recent
trends in society such as demographic and social changes, resource scarcity, inequality, and
volatility offer opportunities for vertical farms. There has been a decreased interest in the rural
farming profession and an increase in environmental concerns in which the desire to eat fresh
foods that haven’t be littered with pesticides and frozen for days is growing quickly. Water
scarcity is also a concern with recent droughts and the risk of food perishing during transit after
being harvested from rural fields. Natural disasters such as hurricanes and wild fires have been

4
occurring more frequently in recent decades affecting crops and increasing prices due to the
scarcity (Esposito, 2018). AeroFarms isn’t necessary unaffected by natural disaster, but they do
offer less water usage, more produce at quicker growth rates, and fresh quality produce to
sustain the local communities in which they service.

T (Technological): Vertical farming is changing how we use technology to create a sustainable

future. This advance technology offers the ability to continually monitor the plants growth with
knowing how much water it needs, what nutrients make it grow better and exactly the right
amount of sunlight is needed is what creates the high quality produce that leaves the facility.

E (Environmental): “At AeroFarms, our environmental impact is at the heart of what we do”
(AeroFarms, 2020). Vertical farming was created on the premise of reducing the environmental
impact of traditional farming. Traditional farming depletes the soil of natural resources and
requires large amounts of water usage. Vertical farming offers the recycling and reuse of both
the nutrients and water when growing produce. AeroFarms uses 95% less water than traditional
farming due to the closed loop water circulation system. Another concern is pesticide usage and
the runoff leading to toxic levels of contaminates in the local drinking water. Growing produce in
indoor vertical farms avoids the usage of these harsh chemicals. Available land is becoming
scarce with the increase in population. With vertical farming the ability to produce more
produce in a smaller areas means AeroFarms is using less square foot than traditional farm fields
to grow their crops. (AeroFarms, 2020).

L (Legal): At this time there are no laws affecting vertical farming operations and are often seen
to be the same as a greenhouse operation. Upcoming legislations are continuing to put a
positive light on vertical farming operations and should be viewed as an opportunity. For
AeroFarms that means there is no barrier for growth.

Porter’s Five Forces

Porter’s Five Forces models helps to analyze the competitive forces which determine the shape
of the vertical farming industry and more specifically AeroFarms. This model also compares both
the strengths and weaknesses the company is currently facing.

Competition in Industry – Moderate Risk: AeroFarms does have competitors in the urban farming
industry. Some of these include Bowery, Plenty, INNO-3B, NEXUS, GOTHAM, Rough Brothers,
Inc., Bright Farms, Stuppy, SUNSET, and Motorleaf to name a few. A comparative chart of some
of the major competition for AeroFarms can be seen in Figure 3: Comparative Situation Analysis
of the Competitors.

Potential of New Entrants – Low Risk: The threat of new companies entering the competitive
market are relatively low. The cost of entry due to technology and property investment make it
more difficult for new entrants to get a new business up and running. Creating a profit and gain
market share would be relatively difficult causing instant failure.

5
Power of Suppliers – High Risk: The bargaining power of suppliers can affect the urban farming
industry. Suppliers have the advantage when they are few in numbers, companies only account
for a small amount of sales, they don’t provide a good substitution for what is already being
purchased, and the product they provide is unique. When suppliers have these properties they
have the ability to charge higher prices for their provided supplies such as seeds, nutrients, cloth
mesh, technology software, manufacturing products, etc. If the suppliers raised prices, the buyer
such as AeroFarms would have little options but to carry the costs.

Power of Customers – Moderate Risk: The purchasing power of customers remains a moderate
risk. The options available to consumers includes traditional farming fresh, frozen, and canned
produce. Continuing to offer the highest quality produce through vertical farming technology
will satisfy the average customer and increase repeatability in sales. With the newer trends in the
food industry vertical farming has a competitive advantage with the high degree of food safety,
quicker processing, repeatable quality, and the non-use of pesticides allowing them to grow an
attractive product for the new social standards.

Threats of Substitutes – High Risk: Substitutes in the vertical farming industry are ultimately the
same product produced at a lower cost. This allows traditional farming produce to be sold at
lower prices threatening the vertical farming industry. AeroFarms must use economies of scales
to help in reducing the cost of production allowing a decrease of price to consumers. This is
accomplished through vertical racking (stackable containers) and technology automation of
growing the produce in these large warehouse facilities (AeroFarms, 2020).

Porter’s five forces analysis helped determine the risks that will affect the vertical farming
industry, more specifically AeroFarms. Of these, the Power of Suppliers and Threats of
Substitutes have the highest risk, Competition in the Industry and Power to the Customer are
moderate risk, and low risk is the Potential of New Entrants. For a new company to play in this
market space it would take a large amount of funding to start, therefore, this risk is the lowest.
The moderate risk categories are due to the competition already in the market and each offering
their quality and price points to differentiate themselves from the others, whether this is such
things as offering specialized type of produce, convenience options, or cheaper prices. High risk
forces are the ones that hold the most value to the industry. If suppliers are unwilling to offer
competitive pricing for AeroFarms it takes away from their profits. However, the biggest threat
to the industry currently is the Threat of Substitutes. With the price differences between produce
created through traditional farming and vertical farming it can directly impact AeroFarms and
has the most potential for destroying the industry.

Opportunities and Threats - SWOT

The opportunities and threats in the vertical farming industry include the details below and can
also be viewed in Figure 4: SWOT Analysis.

Opportunities

 Produce is free of harsh chemicals normally used in traditional farming

6
  Offers new jobs and opportunities for individuals in the community
 Ability to develop products for niche markets
 Year round production capabilities

Threats

 Threat of substitutes remains high due to price of produce

 Social believes may hinder profits due to people thinking the produce is in some way
genetically modified and not grown naturally
 Backlash from traditional farmers

Internal Analysis
For this case an internal analysis has been performed. The use of the SWOT analysis was used
and evaluated.

Strengths and Weaknesses – SWOT

The strengths and weaknesses associated with the vertical farming industry are outlined below
and can also be viewed in Figure 4: AeroFarms SWOT Analysis.

Strengths

 Year round crop production

 Decreased weather related crop failure
 Low environmental impact
 No use of harsh chemicals such as pesticides, herbicides, and fertilizers
 90% reduction of water usage
 More control in food quality and safety
 Largest vertical farm producing millions of produce per year
 Both investors and local official’s belief in AeroFarms work and vision by offering
incentives, grants, and tax credits.

Weaknesses

 Cost to start a vertical farm (building, technology, staffing, etc.)

 Due to high production costs, must have a high selling price to create profit
 Produce grown in cloth mesh may alter taste
 Limited vertical area to grow and altered lighting sources could prevent good
growth

Strategic Focus & Recommendations

In order for AeroFarms to remain competitive they must focus on what drivers will allow them to
gain more market share by growing their customer base. The recommendations mentioned

7
below are only a few of the opportunities AeroFarms should take advantage of to increase their
role in a sustainable future.

Highlight the Environmental Impact – By highlight the low environmental impact, more trend
setting individuals will choose to pay more for the produce they eat than purchase from a
company who has no initiative to help the environment. This is also known as “Green
Marketing,” where companies use their environmental consciousness and benefits to aid in
selling their products or services (Vos, 2019). The Green Marketing strategy helps to attract
consumers by addressing the company’s social responsibility and using terms such as organic,
eco-friendly, recyclable, and sustainable in turn influencing consumers purchasing decisions.
Integrating green marketing into their business strategy could be as simple as communicating
the green message through domestic and international advertising, taking part in market
research and visualizing the results to educate consumers on what they are purchasing,
partnering with like-minded businesses, supporting local environmentally friendly community
initiatives and focusing on continuation of green production (Vos, 2019).

Grow more variety of produce, convenience options, and enter niche markets – At this time the
types of produce growth in vertical farms are limited. By growing new types of produce it will
open more doors to gain more market share. Offering different types of conveniences such as
pre-cut or portioned produce will make it more accessible to the quick shopper. Niche markets
could open up targeted revenue streams such as local restaurants looking for certain tastes and
textures to use in their cuisine. Current retail product offering from AeroFarms is branded as the
Dream Greens shown below.

(AeroFarms, 2020)

8
Continually strive for innovation – Technology innovation is the backbone of vertical farming.
Continuing to stay up to date with the latest software and sensors will help to continually create
the high quality of products at increased growth rates. This in turn will create economies of scale
hence the ability to offer affordable produce to all income levels in the economy.

Business Process Changes

For the vertical farming industry to remain successful, it must work to improve its revenue,
without increasing price of produce for the consumer. Offering more options, speaking with
local communities on the environment and advertising may allow the ability for cost reductions
to take place, along with the innovative additions to enhance the economies of scale. Increasing
the customer knowledge and experience will be incentive for more individuals to purchase from
vertical farms such as AeroFarms. AeroFarms may need to consider different types of markets to
play in and turn their focus to high revenue locations with increasing production opportunities.

Addendum related to the COVID-19 Pandemic

Fourth quarter 2019 saw the start of something unimaginable and unlike anything since the
Spanish Flu pandemic of 1918. Called COVID-19, this virus impacted the global economy in
massive ways and changed the way of life for all Americans. Of specific challenge was the urban
farming industry. The world relies on the urban farming industry to ensure access to food is
available to families during this time of need. In fact, during the early months of the pandemic,
many state legislatures shut down non-essential businesses in hopes of “flattening the curve”.
This did not included anyone in the food industry, such as AeroFarms. They continued to remain
open ensuring the access to food was still available.

While there is no guarantee that this pandemic will end soon, but AeroFarms continues to adapt
their business models and abilities daily. Such action items they have introduced include
(AeroFarms, 2020):

 Closing the facilities to only essential personnel.

 Reminding individuals to stay home from work if they have symptoms.
 Taking daily temperatures before employees access the farm.
 Implementing heightened sanitation practices
 Installing additional hand sanitation stations for employee use.
 Reinforcing effective handwashing and the use of personal protective equipment.
 Ensuring the 6ft social distancing recommendation is being followed.
 Making employees who have traveled to self-quarantine for 14 days before allowed back
on the facility grounds.
 Promoting working from home and limiting face-to-face meetings.
 Automating clerical type duties.
 Ensuring the supply chain is be able to operate without any interruptions.

Summary

9
AeroFarms rose to prominence by utilizing technology, controlling the supply chain, and
providing a product that triggered an emotional connection (AeroFarms, 2020). As the industry
matured, and became increasingly more competitive, their ability to adapt and maintain their
competitive advantage has been challenged. For AeroFarms to remain viable, the
recommendations mentioned in this case study provide fundamental guidance for future
success. For vertical farms, this means a keen focus on profit which allows them to continue to
invest in technologies that encourage safe quality products, economies of scale to reduce costs,
and marketing opportunities to promote the uniqueness of the products produced by
AeroFarms.

10
Appendix
Figure 1: Indoor Vertical Farming Technology

(AeroFarms, 2020)

Figure 2: State Legislations on Urban Farming

State Legislation Description

Allows a county or city to establish Urban Agriculture Incentive

Zones (UAIZ) for the purpose of supporting local food
production. Authorizes cities and counties to enter into
contracts with landowners who agree to restrict the use of
California AB 551 (2013) their land for a minimum of five years for small-scale
agricultural production. Landowners then have their land
assessed at a lower rate based on the average per-acre value
of irrigated cropland in California. A city or county with a UAIZ
program may establish regulations for implementing and

11
 administering the program, including assessing a fee to cover
the cost of the program and cancelation fees for exiting a
contract early. For more information, see NCSL’s 2013 Healthy
Communities Action Bulletin on the law.
Created a Food Systems Advisory Council to develop
recommendations that promote local food economies. The
recommendations may include an examination of local and
regional efforts to develop local food economies by identifying
Colorado SB 106 (2010) regulatory and policy barriers and strengthening local
infrastructure and entrepreneurial efforts, and to determine
the potential effects of local food economies on economic
development in Colorado or other food access and economic
topics.
Provides for no more than $400,000 in 2016 and $350,000 in
each fiscal year thereafter to be used to implement the Urban
District of Columbia B 158 (2015) Farming and Gardens Program, Urban Farming Land Leasing
Initiative and the real property tax abatement for urban
agricultural uses.
Authorizes the mayor to create the Food Production and
Urban Gardens Program, which will compile a comprehensive
list of vacant lots within the city for use as urban gardens
  B 677 (2015) through voluntary donation and negotiated agreement. The
program will also encourage “the donation and cultivation of
vacant lots for use in the Food Production and Urban Gardens
Program.”
Established a working group to develop a plan for establishing
a commercial distribution system for fresh produce and
healthy foods to corner stores. The working group must
  B 967 (2013) include a representative of urban farming and community
gardens and will issue recommendations to the Mayor and the
Council. This bill also established two programs to increase
healthy food access in low-income areas.
Authorizes the Hawaii housing finance and development
corporation to provide incentives for the development of
housing projects that incorporate urban gardening programs.
Hawaii HB 560 (2013)
Requires the University of Hawaii at Manoa College of Tropical
Agriculture and Human Resources to be consulted regarding
best practices.
Sets a goal that 20 percent of all food products purchased by
state agencies and state-owned facilities be local farm or food
products by 2020. The bill removed a barrier to purchasing
locally grown food by giving preference to locally grown food.
Illinois HB 3990 (2009) The bill also created the Local Food, Farms and Jobs Council to
help local farm and food entrepreneurs identify and secure
resources and equipment to expand projects and build
infrastructure and use of public lands for growing local food
products, among other goals.
  HB 1300 (2007) Or the Illinois Food, Farm and Jobs Act, established the Local

12
 and Organic Food and Farm Task Force. The task force will
develop policy and funding recommendations for expanding
the state’s local and organic food systems. The task force will
examine opportunities to increase local food production,
identify legal impediments to local food production, identity
land preservation and acquisition opportunities for local and
organic agriculture in suburban and urban areas, and identify
means to expand urban agriculture training programs, among
other provisions.
Amends property tax law including appraisal for “land devoted
to agricultural use.” If a parcel has land devoted to agricultural
purposes and land used for suburban residential acreages,
Kansas SB 280 (2015) rural home sites or farm home sites, the county appraiser shall
determine the amount of the parcel used for agricultural
purposes and value and assess it accordingly as land devoted
to agricultural purposes.
Established the Louisiana Sustainable Local Food Policy
Council to consider a number of policies, including analysis of
how best to promote urban and backyard gardens, evaluation
of the effects of sustainable local food production on
economic development, identification of local and regional
Louisiana HB 840 (2010) efforts that provide information and training to entrepreneurs
and local farmers who are pursuing sustainable local food
economic development opportunities, and identification and
development of solutions to regulatory and policy barriers that
inhibit sustainable local food economies among other
provisions.
Allows political subdivisions to establish Urban Agricultural
Incentive Zones (UAIZs) to allow for contacts with landowners
for the agricultural use of vacant, unimproved, or blighted
lands. Contract terms must be at least three years. Restriction
  HB 761 (2015)
on the property must be at least 3,000 square feet but less
than three acres in size. Dwellings are prohibited on UAIZ
properties. Fees may be imposed on landowners for the costs
of implementing and administering contracts.
Provides a grant of $150,000 to the Board of Directors of the
American Communities Trust, Inc. for the acquisition, planning,
design, and construction of a food hub facility, including
Maryland SB 191 (2016)
construction of a food pantry, urban farm, kitchen incubator,
food distribution facility, food production facility, and
community spaces located in Baltimore City.
Authorizes the Mayor and City Council of Baltimore City or the
governing body of a county or of a municipal corporation to
  HB 1062 (2010) 
grant a tax credit against the county or municipal corporation
property tax imposed on specified urban agricultural property.
Creates appropriations of $10,235,000 in the first year and
Minnesota SB 3018 (2016) $10,235,000 the second year for the agricultural growth,
research, and innovation program. Annual reports by the

13
 commissioner must be made concerning the accomplishments
and anticipated accomplishments in the following areas:
developing urban agriculture; facilitating the start-up,
modernization, or expansion of other beginning and
transitioning farms; sustainable agriculture on-farm research
and demonstration; development or expansion of food hubs.
Directs the commissioner of agriculture to convene with
interested stakeholders to develop a proposal to effectively
and efficiently promote urban agriculture in Minnesota cities.
  SB 5a (2015) 
Defines urban agriculture as “producing agricultural plants,
poultry, or livestock on public or private property within city
limits.”
Provides $50,000 in grant funding to a community garden
project within the northeast portion of a county with a
Missouri HB 2006 (2016) population of more than 950,000. Creates competitive grants
for innovative agriculture projects that promote urban,
suburban and non-traditional agriculture.
Established the Joint Committee on Urban Agriculture. The
committee must study and make recommendations regarding
the impact of urban farm cooperatives, vertical farming and
sustainable living communities, and must examine various
  HB 1848 (2010)
trends in urban farming, including; existing services, resources,
and capacity; affected communities; and any needed
legislation, policies, or regulations. The committee must hold
meetings to seek public input.
Established urban agriculture zones (UAZ), defined as a
“zone(s) that contain an organization or person who grows
produce or other agricultural products, raises or processes
livestock or poultry, or sells at a minimum 75 percent locally
grown or raised food.” Any person or organization may submit
an application to a municipality to develop a UAZ on a
blighted area of land. Real property taxes may not be assessed
on any UAZ for 25 years once the application requirements
have been met, except an amount not greater than the tax due
during the preceding calendar year in which the UAZ was
designated. Requires a grower UAZ to pay wholesale water
  HB 542 (2013)
rates for water consumed on the zone property and pay 50
percent of the standard cost to hook onto the water source if
the water service is provided by the municipality. Requires any
local sales tax revenues, less 1 percent that is to be retained by
the Director of the Department of Revenue, from the sale of
agricultural products sold in a UAZ to be deposited into the
newly created Urban Agricultural Zone Fund. School districts
may apply to the State Treasurer for money to develop
curriculum on urban farming practices under the guidance of
the University of Missouri extension service and a certified
vocational agricultural instructor.
Nebraska LB 699 (2016)  Allows municipalities to establish priorities for the use of real

14
 property conveyed by a land bank. Such ranking shall take into
consideration the highest and best use that, when possible,
will bring the greatest benefit to the community. The priorities
may include, but are not limited to, use for urban agricultural
activities including the establishment of community gardens.
Authorizes the sale and lease of unneeded public property to
nonprofits for gardening and urban farming. Exempts such
New Jersey AB 2859 (2011)  urban farms from property taxation and authorized such
nonprofits to sell fresh fruits and vegetables on the leased
land, off the leased land, or both under certain conditions.
Creates the New Jersey Fresh Mobiles Initiative Pilot Program.
The pilot program will operate in one or more municipalities,
selected by the Secretary of Agriculture, in which residents
have limited access to nutritious foods through supermarkets,
grocery stores, and farmers’ markets, which agree to
  AB 3688 (2011)
participate in the program. The Department of Agriculture
shall identify, on its website, the municipalities selected for
participation, and the vendor supply areas at which, and the
times during which, fresh mobile vendors will be accessible for
community residents. 
Created a Sustainable Local Food Advisory Council to help
build a local food economy. The council can consider the
possibility of promoting urban gardens and backyard gardens
and analyze the potential effects of the production of
sustainable local food on economic development in the state,
North Carolina SB 1067 (2009)
barriers to a sustainable local food economy and issues
regarding strengthening local infrastructure and
entrepreneurial efforts related to a sustainable local food
economy, among other goals. The council must report findings
and recommendations annually. 
Also known as the Oklahoma Certified Healthy Communities
Act, created the Oklahoma Certified Healthy Community
Oklahoma HB 2774 (2010) Advisory Committee. Criteria for eligibility include the
establishment of community gardens and incentives and
support for farmers’ markets.
Authorized the Texas Agricultural Finance Authority’s Board of
Directors to establish an urban farm microenterprise support
program. The program supplies loans that expand, renovate,
Texas HB 2994 (2011)
improve or establish new urban farm microenterprise
programs. Urban farms must be owner-operated and located
in areas of 500,000 persons.  
Allows parcels in Salt Lake County between two and five acres
to be assessed at lower property rates if the land is used to
grow crops for sale at a profit, as long as production is greater
Utah SB 122 (2012) than 50 percent of average production for similar land. This bill
also provided for the rollback of some of the benefit of the
lower property tax rate when or if the land is sold for
development.

15
 Provides an appropriation of $307,000 solely for the Rainier
Washington HB 1115 (2015)
Beach urban farm and wetlands.
(NCSL, 2019)

Figure 3: Comparative Situation Analysis of the Competitors.

(Haynes, n.d.)

Figure 4: AeroFarms SWOT Analysis

16
Work Cited

17
AeroFarms. (2020). Our Farms - AeroFarms - AeroFarms. Retrieved October 19, 2020, from
https://aerofarms.com/farms/

Banerjee, Chirantan. (n.d.). Up, Up and Away! The Economics of Vertical Farming. Retrieved
October 20, 2020, from
http://large.stanford.edu/courses/2016/ph240/swafford2/docs/banerjee.pdf

Esposito, Mark. (2018, January 1). Growing Agriculture Markets with Vertical Farms | California.
Retrieved October 19, 2020, from https://cmr.berkeley.edu/2018/01/vertical-farming/

Haynes, Yoachim. (n.d.). 200M of Plenty(ful) Capital – The Next Wave of Vertical Farming.
Retrieved October 20, 2020, from https://www.cleantech.com/200m-of-plentyful-capital-the-
next-wave-of-vertical-farming/

NCSL. (2019, August 20). Urban Agriculture State Legislation. Retrieved October 19, 2020, from
https://www.ncsl.org/research/agriculture-and-rural-development/urban-agriculture-state-
legislation.aspx

Stark, Krista. (2019, March 24). Economic Viability of Vertical Farming: Overcoming financial.
Retrieved October 19, 2020, from https://blogs.nicholas.duke.edu/env212/economic-viability-of-
vertical-farming-overcoming-financial-obstacles-to-a-greener-future-of-farming/

Stein, Rick. (2015, July 1). How Do Customers Shop for Produce?. Retrieved October 19, 2020,
from https://www.fmi.org/blog/view/fmi-blog/2015/07/01/how-do-customers-shop-for-
produce

Vos, Lesley. (2019, January 22). What Is Green Marketing? 5 Sustainable Examples to Know.
Retrieved October 19, 2020, from https://learn.g2.com/green-marketing

18