Ever looked at that ten-storey building in your town and wondered what the world would be without such innovations? Look at the global population growth, competing against the available land for settlement and farming.

vertical farming

No wonder vertical farming stocks have seen soaring demand recently. Especially due to their ability to harness the power of the available farming resources for a bountiful return on investment.

Imagine a farming practice no longer tied to seasons, environmental changes and your quarter-acre horizontal space! You can plant and harvest anytime, control the environment and stack as many vertical structures as your creativity can afford.

Dr Dickson Despommier rolled the ball into our court when he said, “The puzzle on the table is the food source for the next three billion people. It could come from somewhere other than traditional farming. Could vertical farming and indoor agriculture solve the puzzle?”

This article explores what vertical stocks are, how to invest in them and the go-to farming stocks in 2023. Oh, the fastest-growing vertical farming stocks are also part of the discussion.

Let’s dig in!

What are vertical farming stocks?

Remember the ten-storey building mentioned earlier? Imagine erecting a vertical structure that accommodates the necessary resources for plant growth. Say, soil, water, air and sunlight.

If you imagined a building whose balconies accommodate climbing trees on every floor, such as flowering vines and creepers, you have a glimpse of vertical farming. Growing plants in an artificial environment.

You can adjust the conditions necessary for the growth of what you choose to plant by adjusting the design of your structure and type of soil.

You can also control the amount of sunlight reaching the crops. Additionally, you can use recycled water instead of waiting until the rains fall. What a flexible practice!

Want to have a visual understanding of vertical farming? This twenty-three-second video on vertical farming by Agrotonomy on Tiktok explains it.

How to invest in vertical farming stocks

According to the UN, the world will require about 60% more food by 2050 to support the rising population growth. On the other hand, 70% of all freshwater is invested in agriculture, making it even more challenging to approach the looming danger of a food crisis.

Needless to worry. Vertical farming is creating a more secure and sustainable way of food production with lesser resources and higher yields.

Thanks to innovators who have gone a mile ahead and invested in technologies such as hydroponics, Greenhouse automation and vertical farming. And who doesn’t want to participate in the fast-paced revolution before the takeoff?

There are three ways you can invest in vertical farming stocks:

  • Direct startup investment
  • Agricultural Mutual Funds and ETFs
  • Individual shares of stock

But which vertical farming stocks can you invest in?

Let’s look at the top companies you can buy stocks from for a considerable benefit over time.

The 5 best vertical farming stocks

Choosing vertical farming stocks to invest in can be a daunting task. Although most companies offer a competitive advantage, you must understand how the business operates and the estimated economic value it will offer in the future.

Based on the underlying technologies and economic value proposition, here are the top five vertical stocks you should consider investing in:

AppHarvest (APPH)

AppHarvest designs and manufactures some of the largest indoor farms focused on leafy greens such as lettuce, spinach, and vine crops such as tomatoes and cucumber.

It is known to produce pesticide and GMO-free farm products. Its design preserves about 90% of the water that would otherwise be needed on a traditional approach, using 100% recycled rainwater and a closed-water irrigation system.

The company also uses renewable sources, including natural gas and solar energy. AppHarvest’s total market capitalization stood at $73M as of April 2023, which gives it a competitive edge for investors.

Hydrofarm Holdings (HYFM)

Hydrofarm Holdings provides various indoor and Greenhouse farming equipment, including ventilation equipment, high-intensity lighting equipment, and growing media.

HYFM has gained its prominence through its membership with The Global Controlled Environment Agriculture Market, whose worth is estimated to be $100 Billion by 2030, rendering it worth the investment.

Village Farms International (VFI)

Village Farms International is a hydroponic technology company based in Canada, known for producing and distributing tomatoes, pepper and cucumber in North America.

With a market capitalization of $63M as of April 2023, VFI remains a considerable stock investment opportunity. Plus, investing in it offers exposure to its recent venture in the Cannabis industry, which is gaining prominence in the market.

Agrify Corp (AGFY)

Agrify Corp is dedicated to helping the Cannabis and hemp industry by offering Vertical Farming Units (VFU) with air purifiers, Integrated Grow Racks and LED farm lights that support the product’s cultivation and extraction.

The company is still unprofitable, as it recorded a $92.9 million net loss in revenue between 2021 and 2022. The demand for its vertical farming equipment makes the company worth the risk.

GrowGeneration Corp (GRWG)

GrowGeneration Corp sells and services hydroponic gardening equipment such as

Artificial lighting in sixty-three locations across thirteen states in the United States and is set to expand until all fifty states are covered.

One of the promising reasons to invest in GRWG is its fast-paced growth which saw an improved revenue and adjusted EBITDA guidance by September 2022, despite the 39% sales decline.

What are some of the fastest-growing vertical farming stocks?

Based on their growth and economic valuation, we have discussed the top five vertical farming stocks in 2023; AppHarvest, Hydrofarm Holdings, Village Farm International, Agrify Corp and GrowGeneration Corp.

While the above-mentioned are at the top of the list, other rising vertical farming stocks include Kalera Group and Scotts Miracle-Gro.

Finally, while investing in vertical farming stocks has so much to do with how much you are willing to risk, it’s important to stay updated on stock news and market trends for informed decisions.