As the vertical farming industry gains traction and grows exponentially, so too increases the opportunity for investors to see real growth through investing in the industry. The vertical farming industry is showing enormous potential to completely transform the agricultural world as we know it.
Vertical farming has the potential to solve many of the issues associated with current food production methodologies. At the same time, it presents one of the best solutions to solving issues of world hunger and food shortages. These issues seem to be growing exponentially with each passing year. With an industry with such enormous potential for growth, investors are starting to see massive potential for their financial gain.
Investing In Vertical Farming Stocks
Within the next three decades, the world will have to double its food supply to accommodate its exponentially fast-growing population. The amount of arable land for food growth decreases significantly every year, potentially falling by 50% by the year 2050. This is due to climate change, urban sprawl, and the destruction of soil across the globe.
Across the world, the vertical farming industry is growing significantly. At the same time, the stocks are growing substantially at an exponential rate. Because vertical farming is set to play a vital role in helping to meet the needs of the world’s increasing food demands while farmable areas decrease, potential investors see the potential for enormous growth in the industry.
The growth of the vertical farming industry can only be seen as a positive for all stakeholders and all other affected parties. Investors will benefit from the growth of the industry. In addition, the industry will help ensure that food shortages are less of a concern for the vast population of the planet in the future.
The reduced water consumption, reduced use of pesticides and herbicides, and the reduced carbon emissions associated with transporting food will benefit the environment and the global population.
Top Vertical Farming Stocks
Several vertical farming companies have seen substantial growth in recent years. As a result, major corporations such as Google and Walmart have made significant investments in the industry. This should instil a certain degree of confidence in potential investors. Still, it’s important to do your research to see which vertical farming stocks will yield the best return on your investment.
The following video gives some examples of the best vertical farming stocks to invest in. This should give a fair idea of some of the companies worth looking into if you aim to invest in stocks in the vertical farming industry.
Most vertical farming companies remain in their early stages of development and have not yet been listed publicly. However, the number of vertical farming companies with publicly available stocks shows growth. There is still the opportunity to invest in ETFs or other companies associated with the vertical farming industry. This will be discussed further under another heading.
Vertical farming stocks are a particularly interesting investment area as they sit at the intersection of impact investment and value investment. This is highly appealing to numerous investors who seek to make a positive impact through their investments.
According to valueofstocks.com, four of the best vertical farming stocks to keep your eye on would be:
- Hydrofarm Holdings
- Village Farms International
Hydrofarm Holdings manufactures the equipment associated with indoor agriculture. Having gone public with its shares in 2020, this stock has great potential with lifetime earnings of 12.5% and the acquisition of House & Garden on the horizon (a $125 million multi-touchpoint operation), Hydrofarm Holdings is set on growth and might be a worthwhile investment.
Appharvest is another vertical farming company that has listed its shares publicly, presenting the opportunity for private investors to become involved. This company expects a $21 million net revenue from only 60 acres. The brand has significant involvement in high-tech and is constantly evolving with great interest in innovation and emerging trends in the industry.
Appharvest can serve as an excellent entry point for potential investors seeking long-term growth. This company already has partnerships with major corporations such as Costco, Walmart, and Target is a major indicator that there is enormous potential for growth in years to come.
Kalera is another leading vertical farming company incorporating high-tech hydroponic techniques in urban environments. Based in the US, Kalera has expanded globally, positioning it as a major market leader with a wide range of products available.
Village Farms International, based in Canada, is another company in the sector with an ever-expanding revenue and a fast-growing produce range. This company’s involvement in the cannabis industry might also encourage investors who want a foot in the door of that fast-growing industry at the same time.
According to mygreenvalue.com, some of the other vertical farming stocks that are worthwhile investigating include:
- Squareroots grow
- Vertical Roots
- Gotham Greens
- Iron Ox
- Kobus Vertical Farming
What Is The Best Vertical Farming Stock?
While opinions may differ, and several vertical farming companies will be well worth investing in, the one that stands out the most at present is Appharvest.
Appharvest is one of the world’s best-known vertical farming companies in the US. This company operates and develops large vertical farms using the most sophisticated technology currently available. Appharvest boasts the biggest greenhouse globally at over 60 acres in size.
Appharvest is a fast-expanding company with 12 new projects already set in motion, aiming to complete by 2025. This company has secured several partnerships with several major retailers, further bolstering investor confidence. These major corporations include Costco, Walmart, Kroger, and Target.
Appharvest is one of the few vertical farming companies that has gone public, making its shares far more accessible to private investors and the general public.
How Do You Invest In Vertical Farming Stocks?
Because most vertical farming companies are relatively new and have not yet gone public, it can be difficult to invest in their stocks. While only a few companies have publicly available stocks, there are still other ways to invest in these companies.
One of the options available is to invest in equity in new vertical farming companies. You can invest directly by keeping an eye out for fundraising rounds for these companies. You could also invest through impact investing firms focusing on the socio-economic interests associated with the industry.
Buying stocks is naturally one of the best ways to invest in vertical farming stocks; however, there are currently very few publicly listed vertical farming companies.
Another alternative is to purchase stocks from the companies related to vertical farming, such as those that produce equipment for the vertical farming industry.
Exchange-traded funds (ETFs) are another way to invest in the industry instead of individual stocks. This allows you to have your funds invested in multiple types of assets to distribute the risk evenly and ensure the diversification of your investment portfolio.
Why Invest In Vertical Farming Stocks?
Vertical farming is potentially a great industry to invest in. Firstly, the industry shows a predicted growth rate of more than 24% within five years. As the industry grows, so will the production levels of the fresh produce while ensuring the most efficient use of resources possible.
Vertical farming stocks are potentially an extremely lucrative sector that brings together agriculture, high-tech technology, and a great degree of control over the production and growth of plants and crops.
As the population grows, so will the vertical farming industry to cope with the demand for food. As technology advances, costs will drop, and production output will increase. With the combination of careful quality control and a reduction in food supply chain issues, vertical farming stocks have the potential to yield extremely high returns.
Vertical farming stocks are growing rapidly, and an increased need to feed an ever-growing population on dwindling land supplies. As a result, investing in vertical farming stocks as they become more easily available will likely see a brilliant return on investment. By carefully researching existing and upcoming vertical farming companies, you will find those fit best within your investment portfolio.