April 13, 2023
Controlled Environmental Agriculture Industry
Controlled Environment Agriculture (CEA) is an evolving industry where the production of plants and their products, such as vegetables and flowers, takes place inside controlled environment structures like greenhouses, vertical farms, and growth chambers.
IADG staff continue to evaluate the industry and CEA businesses that are emerging in advanced indoor growing platforms. Brian Tapp, VP of Value Added Agriculture, recently attended the Controlled Environmental Ag – Summit East 2023 in Danville, Virginia. The Summit included continuing education on the market and the changes that continue to disrupt this industry. “There appear to be several models in CEA that are working and some that are not,” stated Tapp.
Some of the notable names in the industry, including Aero Farms, Fifth Season, Infarms and others, have met serious challenges.” However, based on these experiences, several indicators have been identified for Iowa’s success and future business opportunities in CEA. They include a technology or horticulture focus, indoor or advanced greenhouse platforms, plant varieties, and unit cost economics. All these factors contribute to the success or failure of each CEA location coupled with the identified market. The success appears to be in small to medium-sized firms that can be nimble and provide steady growth and consumption for their products. IADG will continue to follow this industry and participate in key CEA events, such as Indoor Ag Con 2024.
