--- title: Old Macdonald had a… skyscraper - The Hustle description: The next generation of farms will be vertical. Here’s why. image: https://hs-sbup.thehustle.co/hubfs/The%20Hustle%20News/Assets/Images/919062268-News-Brief_2021-12-17T010955.959Z.webp --- # Old Macdonald had a… skyscraper ![Jacob Cohen](https://thehustle.co/wp-content/uploads/2021/01/IMG_5670-1-modified-768x768.png?width=48&height=48&name=IMG_5670-1-modified-768x768.png) [Jacob Cohen](https://hs-sbup.thehustle.co/author/jacob-cohen) [Jacob Cohen Twitter profile ](https://twitter.com/ImJacobCohen) Published: December 17, 2021 Updated: October 11, 2023 By 2050, the world’s population will [increase](https://www.fb.org/newsroom/fast-facts) by **2.2B** and 68% will [live](https://www.un.org/development/desa/en/news/population/2018-revision-of-world-urbanization-prospects.html) in cities, up from 55% now. ![Old Macdonald had a… skyscraper](https://hs-sbup.thehustle.co/hs-fs/hubfs/The%20Hustle%20News/Assets/Images/919062268-News-Brief_2021-12-17T010955.959Z.webp?width=595&height=400&name=919062268-News-Brief_2021-12-17T010955.959Z.webp) That’s a problem for food, which, unlike people, is staying still. In the US, for example, ~100% of lettuce [grows](https://www.agmrc.org/commodities-products/vegetables/lettuce) in California and Arizona. The result: distance, time, and distribution [account](https://www.plenty.ag/article/farm-of-the-future) for 20%-35% of produce costs. This imbalance is particularly notable in China, where rapid urbanization means the country now has [21%](https://www.bloomberg.com/news/features/2021-12-13/farmscraper-design-takes-vertical-farms-to-new-heights?sref=3Ac2yX40) of the world’s population but just 9% of the arable land. #### **The solution: Build farms up** The next generation of farms are indoors and vertical. “Vertical farms” work like parking garages. Many don’t use soil; they use materials and sensors that mimic natural environments. Because they can operate 24/7 and recycle water, the efficiency is f*cking ridiculous: [350x](https://www.weforum.org/agenda/2017/11/this-company-wants-to-build-a-giant-indoor-farm-next-to-every-major-city-in-the-world?utm_content=bufferf6645&utm_medium=social&utm_source=facebook.com&utm_campaign=buffer&fbclid=IwAR1sWb2MlCEyZcdQSg_vgoNR3JwKB3KUq3O8BO4De93U8hK9qRiBUrSM36I) the traditional farm harvest with just 1% of the water. Midway through this year, indoor farming VC [investments](https://pitchbook.com/blog/exploring-a-new-crop-of-startups-a-closer-look-at-indoor-farming) were already up 403.4% YoY to **$2.7B**. #### **Where’s this happening?** Globally. Major projects can be found in: - **Newark**, where AeroFarms has a 70k-square-foot facility growing ~2m pounds of produce annually. - **Abu Dhabi**, where the government is offering $150m in incentives for vertical farmers to come build. - **China**, where plans are in place for a 51-story office tower doubling as a vertical farm that’ll produce enough crops to feed 40k people each year. Sounds great. What’s the catch? #### **Economics, as always** It’s not cheap to build a high-tech super-farm, and it doesn’t make sense to grow every plant in one. One Cornell professor [calculated](https://www.aem.org/news/vertical-farming-how-plant-factories-stack-up-against-field-agriculture) a loaf of bread made from indoor-grown wheat would cost $11. Costs will likely drop over time. At the same time, innovation will rise. In 2012, ~60% of traditional farmers were [older](https://gallery.mailchimp.com/9a0e5ac03df5550dddf4bd821/files/e4f08841-b086-4976-ad53-81d613c2597c/2019_Global_CEA_Census_Report_Autogrow_Agritecture.pdf?utm_source=CEA+Census+2019&utm_campaign=d6dea4a854-AUTOMATION_Welcome_Message_1&utm_medium=email&utm_term=0_924fc70856-d6dea4a854-450269765&mc_cid=d6dea4a854&mc_eid=d769aa4a04) than 55. Last year, 70% of vertical farmers were younger than 40. That’s not to say that older folks can’t innovate, but that younger folks are bringing some new ideas to a ~10k-year-old industry. (*Have any thoughts about vertical farms? *[*Let us know here*](https://forms.gle/s1NREsRanvLhDp1NA)*.*) Topics: [Agriculture](https://hs-sbup.thehustle.co/tag/agriculture) ## Follow us on social media prev next - ![Kinda gross, but kinda cool? 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There’s an app for that - ![Orange you glad you’re not in the orange industry right now?](https://hs-sbup.thehustle.co/hubfs/The%20Hustle%20News/Assets/Images/1392117126-httpsthdaily.s3.us-west-1.amazonaws.comfinal_size-Oranges_20230625234034.webp) ### Orange you glad you’re not in the orange industry right now? - ![It’s looking like a bull market for… the bull market](https://hs-sbup.thehustle.co/hubfs/The%20Hustle%20News/Assets/Images/931915082-httpsthe-hustle.hubspot.comhubfsDaily20Newsletter20ImagesMay2012202023Rodeo.webp) ### It’s looking like a bull market for… the bull market - ![Houseplants get pricey as our love for them grows](https://hs-sbup.thehustle.co/hubfs/The%20Hustle%20News/Assets/Images/453501316-final_size-womanwithhouseplants_20230507224553.webp) ### Houseplants get pricey as our love for them grows - ![Why pull weeds when you can zap them with AI-powered lasers?](https://hs-sbup.thehustle.co/hubfs/The%20Hustle%20News/Assets/Images/1386371261-19-News-Brief_2023-04-12T220908.995Z.webp) ### Why pull weeds when you can zap them with AI-powered lasers? - ![John Deere vs. farmers, explained](https://hs-sbup.thehustle.co/hubfs/The%20Hustle%20News/Assets/Images/414897183-HS-News-Brief_2023-02-15T233322.377Z.webp) ### John Deere vs. farmers, explained - ![Why are eggs so expensive?](https://hs-sbup.thehustle.co/hubfs/The%20Hustle%20News/Assets/Images/1119149331-HS-News-Brief_2022-12-29T001006.230Z-1024x683.webp) ### Why are eggs so expensive? - ![What the heck is happening with fertilizer?](https://hs-sbup.thehustle.co/hubfs/The%20Hustle%20News/Assets/Images/1905979942-HS-News-Brief_2022-05-03T012858.857Z.webp) ### What the heck is happening with fertilizer? 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