Overview

Since the beginning of American civilization, agriculture practices have been a cornerstone for progress. However, as concerns about climate change, resource management, and food insecurity increase, so does society’s responsibility to innovate the agricultural industry to address these concerns. As cities develop and as the United States’ population increases, the land for agriculture becomes increasingly more scarce. There have been many attempts to resolve this problem—the most notable being vertical farming. The concept of vertical farming, dates back to the early 20th century but gained significant traction in the late 1990s with the work of Dr. Dickson Despommier, a professor at Columbia University. Despommier popularized the idea of growing food in vertically stacked layers within controlled indoor environments. Early iterations of vertical farming were driven by the increasing urbanization of the global population and the limitations of traditional agriculture in urban centers. As the world faces growing challenges related to food security, climate change, and environmental sustainability, vertical farming has emerged as a viable solution to these challenges.

The first operational vertical farms were launched in the 2000s, initially using hydroponics—a process in which plants are grown through nutrient dense water, as opposed to the traditional method of soil— to grow crops in indoor environments. These farms began in countries like Japan and the United States, where technological innovation and urban planning policies were more receptive to this new agricultural method. Over time, vertical farming has evolved with improved technologies, allowing it to become more efficient, scalable, and commercially viable.

History

Various government programs at the federal, state, and local levels have helped promote vertical farming. One key initiative is the USDA’s Office of Urban Agriculture and Innovative Production (OUAIP), created under the 2018 Farm Bill. This office provides grants and technical support for urban and vertical farming projects, helping them get off the ground. It also oversees the Urban Agriculture and Innovative Production Grant Program, which funds controlled environment agriculture (CEA), a method commonly used in vertical farming. Alongside this, the USDA's Environmental Quality Incentives Program (EQIP) offers financial aid to farmers adopting energy-efficient practices, including those in vertical farming. Another important program, the Conservation Innovation Grants (CIG), supports technologies like hydroponics and aeroponics, which are vital to the success of vertical farming systems. These initiatives not only provide the necessary resources for the development of vertical farming but also encourage the growth of more sustainable and innovative agricultural practices.

At the state and local levels, various programs encourage vertical farming adoption. The New York City Urban Agriculture Initiative, for example, supports urban and vertical farming through zoning reforms and financial incentives. In Illinois, the Urban Agriculture Grant Program provides funding for vertical farming projects through the Illinois Department of Agriculture. Meanwhile, the California State Water Efficiency and Enhancement Program (SWEEP) helps vertical farms optimize water and energy use through financial assistance.

Regulatory policies also play a crucial role in supporting vertical farming. The FDA Food Safety Modernization Act (FSMA) ensures compliance with food safety standards for hydroponic and aeroponic farming systems. Additionally, the Inflation Reduction Act (2022) offers incentives for energy-efficient infrastructure, benefiting vertical farms utilizing LED lighting and climate-controlled environments. These tried policies collectively contribute to the growth and sustainability of vertical farming in the U.S.

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Policy Problem

Vertical Farming is largely accepted because of its ability to combat food insecurity. According to Columbia professor Dickson Despommier, because vertical farming is more common in urban areas, it is much easier to provide better quality food to more impoverished urban areas that live in food deserts, which are places that have significantly limited access to fresh, healthy food for residents. Food deserts often cause increased risks of diet-related health issues like obesity, diabetes, cardiovascular disease, and nutritional deficiencies due to reliance on less nutritious food options, often found in convenience stores within these areas. This is particularly concerning for communities with limited transportation options or low income. 

Although Vertical Farms can bring environmental and social benefits, many opponents of them argue that because of their high startup cost, and risks to the environment,because of their need to create an artificial environment, do not outweigh the benefits. Energy costs associated with the lighting and climate control needed for indoor farming can make it economically unfeasible without government support.

There is also a lack of standardized guidelines for vertical farming systems, which affects the quality and sustainability of produce. With the increasing pressure to ensure sustainable food systems, it is crucial that policies support vertical farming as an integral part of urban food production, ensuring it remains environmentally and economically sustainable.

Additionally, vertical farming requires government subsidization, but with the Department of Government Efficiency’s (DOGE) cuts, it may be difficult to enact these policies simply due to a lack of funding.

The current stakeholders of this situation include the following:

Urban Farmers and Entrepreneurs: Directly involved in establishing and operating vertical farms, benefiting from regulatory reforms, financial support, and access to market opportunities.

Local Governments and Urban Planners: Play a critical role in implementing regulatory changes and supporting infrastructure development to make vertical farming feasible, balancing the needs of agriculture with urban development goals.

Consumers: Urban residents who would benefit from fresher, more locally produced food with a smaller environmental footprint, influencing market demand.

Environmental and Sustainability Advocates: Interested in promoting methods of food production that minimize environmental impact, particularly water usage and carbon emissions.

Agricultural Technology Providers: Companies that provide the necessary equipment and technology for vertical farming, including hydroponic systems, LED lighting, and climate control technologies, seeking expansion in the vertical farming market.

Investors and Financial Institutions: Provide capital necessary for scaling vertical farming operations and research into innovative farming techniques, seeking a return on investment and the long-term viability of vertical farming systems.

Policy Options

In order to address the climate crisis, Congress and the Biden Administration have three options. The first comes in the form of the “Green New Deal”, put forward by a progressive representative from New York, Alexandria Ocasio-Cortez. The second option, as one of Biden’s campaign promises, is reentry to the 2016 Paris Climate Accord with a renewed commitment from the United States to cut emissions and transition to green energy. The final option is a carbon tax on the fossil fuel industry and any corporation/product that contributes to CO2 emissions combined with tax subsidies for carbon-neutral corporations. However, the second and third options combined would be most likely to successfully pass through both houses of Congress in order to make it to President Biden’s desk. While the Green New Deal is favored by progressives, democratic members of Congress such as Senator Joe Manchin and Senator Kiersten Sinema oppose it, and, therefore, it would not successfully make it through the legislature. 

Conclusions

Vertical farming represents a solution to urban food security challenges, offering space-efficient, water-conserving, and sustainable food production methods. However, for vertical farming to scale and achieve its full potential, supportive policies are necessary to address the barriers of regulatory hurdles, high initial costs, and limited market access.

By implementing targeted policy reforms, providing financial incentives, and fostering research and development, governments can create an environment conducive to the growth of vertical farming. The success of vertical farming could revolutionize urban agriculture, improve local food systems, and contribute to environmental sustainability. In doing so, it could also serve as a model for global food security in an era of climate change and rapid urbanization.

Acknowledgment

The Institute for Youth in Policy wishes to acknowledge Anagha Nagesh, Anoushka Swaminathan, and other contributors for developing and maintaining the Policy Department within the Institute.

References

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