Financing a Hydroponic Vertical Farming 

hydroponic vertical farming may likely to become the big wave in agricultural system in the near future as a means of feeding a growing population in urban areas. Financing a hydroponic vertical farming will attracts investors and alongside, can produce more yields in a shorter period of time, using less space and less water, and with no need for soil. Because these vertical farms are fully enclosed and controlled environments, they are a great way to avoid contamination and pest problems. They also allow plant growth regardless of climate, temperature, and weather conditions. 

Havelet Finance Limited will help you find a 100% funding for a hydroponic vertical farming venture. All you need is to get ready a comprehensive business plan and your application would be given considerations within 24 hours.

Cost of Financing Hydroponic Vertical Farming

Hydroponic vertical farming can be capital intensive. This method of farming, are considerably higher than traditional farming methods and to be clear, the upfront startup costs much higher . For this reason, many vertical farms never really get off the ground. However, compared to other indoor vertical farming methods, the cost of hydroponics is balanced out by its likelihood to turn a profit. Pure Greens Arizona estimates that only about 27% of indoor farms are profitable, while hydroponic systems turn a profit about 60% of the time. To avoid the dangers of high startup costs, be sure you’re aware of the business you’re jumping into, and be sure to plan. When starting a vertical farming business, there are a number of upfront and ongoing costs to consider. Here are a few that you’ll need to factor into your business plan:

Structure: This remains the first and foremost plan while planning start a Hydroponic System of agriculture. You’ll need some land and a building. at least an acre and a half of space on which to build a greenhouse. Some vertical farming methods may use existing structures, allowing you to convert a warehouse or other unused building, but beware. If your building isn’t designed like a greenhouse, you’re going to need to get light to your plants somehow, which brings us to our next big cost. Once you have a building, you’ll need the indoor vertical farm structure as well. This includes the towers or trays where you’ll plant your seeds, the pumps or systems used to deliver nutrients, and all of the other physical structures that make up the vertical farming system you’ve chosen.

Power: One of the most common arguments against vertical farming, or indoor farms in general, has to do with sustainability. Many vertical farming systems rely on indoor grow-lights. This can be an incredibly costly way of powering your vertical farm. At the start, you have to purchase the lights themselves, which can be quite an expense depending on the size of your operation. Then you have to pay to power these lights day after day, through all seasons. Not only is this not cost-effective, it also uses a great deal of electricity, typically leading to greater consumption of fossil fuels. By contrast, our greenhouses focus on maintaining the climate around each plant spot, rather than maintaining the ambient temperature of our greenhouse. With 99% sunlight shining through our greenhouse windows, our plants can grow without 100% LED lights. This makes our system far more energy-efficient, and less expensive to maintain too. 

Labor: Unless you’re planning such a small operation that you can run the whole thing yourself, you’re going to have some labor costs associated with your vertical farm, too. In fact, labor costs are often the largest ongoing expense in a hydroponic farm. In an Eden Green Technology system, you can expect to pay 30 full-time workers per 1.5 acre greenhouse. Be sure to consider local labor costs and associated benefits when figuring out a budget for your farming venture. Because we do not have high energy costs or run solely on automation like other vertical farms, we have the luxury to provide full-time employment and bring economic growth opportunities to any city. 

Ongoing Supplies: Finally, you’ll need to budget for ongoing supplies. This includes your growing medium, plant nutrients, seeds, and anything else needed to keep your farm growing. If you are planning to pack your produce in house, take packaging and shipping costs into consideration. Be sure to do your research and seek out the costs for all of the supplies associated with your preferred farming method.

Source of financing Hydroponic Vertical Farming

Hydroponic growing out of reach for small businesses and startups? Here are applicable source of funding you might tap into to fund your new agricultural business.

Government Grants: The best option for funding is to get someone to give you money that you don’t have to repay. Fortunately, your vertical farm might qualify for one of several government grant programs. The newest Covid-19 stimulus bill also includes support for US Farmers. $1 billion will go to initiatives assessing discriminatory USDA policies, while also providing technical support for Black farmers, as well as funding research at historically Black colleges and universities around the country.

Venture Capital Funding: Unlike grants, this funding typically comes with a few strings attached. Investors fund projects in return for a share of equity in the business. This means if your farm turns a profit (and we certainly hope it will), they get a share of that money. Want to know how to secure this type of funding? NetSuite has a helpful guide to VC funding

Microloans: microloan program is a popular funding source that could be helpful for vertical farms that are just starting out. These loans are designed for “small, beginning farmers, niche and non-traditional farm operations”. The maximum repayment term is 25 years, and the loans can be used for direct farm ownership or operations, including purchasing land, building your greenhouse, marketing and distribution costs, and all sorts of other needs. 

SBA Loans: Probably the most traditional way to fund a small business, SBA loans are available for agricultural businesses. Be sure to check out this funding source and see what might be available to you by navigating the SBA financing wizard.

The Merits of a Vertical Hydroponic System

The fact that any hydroponic system does not require the use of soil as a growing medium is a massive advantage. It lends this concept tremendous versatility and allows farming to be conducted in regions that were previously unimaginable. The below is a detailed merits of Vertical hydroponic System

Maximizing Space

Vertical hydroponic farms, as the name suggests, involve growing farms vertically. This is a major advantage in a world where space has not only become limited but also extremely expensive. Farmers can thus multiply their existing production values several fold by converting their traditional farms into vertical hydroponic ones.

Reduced Wastage

Like all hydroponic farms, a vertical module is also known for its minimization of wastage. All important resources, including the use of water, is put to its best possible use. 

Disadvantages of a Vertical Hydroponic System

Here are a few drawbacks of vertical hydroponics that are worth your consideration:

Expertise

Although vertical hydroponic farming runs like clockwork as soon as the system is in place, establishing a precise module can be quite a challenge for individuals new to this field. It requires either individuals with expertise to help create the framework, or it requires time for the farmer to carefully study and understand all the moving parts of this form of farming.

Equipment

In order to ensure the efficiency of a vertical hydroponic farm, it will require various pieces of equipment such as light panels, monitoring systems, water systems, and sensors. Acquiring these equipment can be pricey in the short-term basis but has huge benefits in the long run.

If you’re hoping to get started in a vertical farming business, why not choose a proven system with excellent profitability and sustainability? Contact Havelet Finance Limited to discuss how we can help you.

We will give the best financing options that suits your Agricultural loans. Kindly contact us

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