Could a Container Farm be the Right Choice for Your CEA Facility?

Written by: Sarah Jordan

March 10, 2023

Agritecture Designer recently introduced a new modeling feature: the ability to design container farms. This method of farming has many advantages for the right farmer and is a great way for smaller operations to get off the ground because of the (typically) lower CapEx involved in opening the farm.

Container farms, as the name suggests, are farms that are housed within repurposed metal shipping containers. These containers are retrofitted with equipment and technology to create a controlled environment for plants to grow. There are many benefits to container farming that make it an attractive alternative to vertical or greenhouse farming. 

While vertical farms require less space than traditional farms, container farms require even less space. This makes them ideal for urban areas where land is scarce and expensive. One urban container farming company from Umeå, Sweden, Harvest, supports their local community with fresh greens like kale, arugula, and basil, among many other crops. Opening in 2020, they successfully survived the pandemic, which had disastrous consequences for many other businesses. They only operate one farm with an additional storefront, but their impact in their community cannot be minimized. They also sell their produce directly to restaurants. 

This method of farming is highly flexible and customizable. With prefabricated containers, such as those available from Zipgrow, a member of Agritecture’s Partner Network, the timeline from conceptualizing your farm to actually executing your design is much shorter, which is a definite advantage over greenhouse or vertical farming facilities.

Container farms can be used to grow a wide range of crops, including vegetables, herbs, and even flowers. They are a great option for small-scale farmers who want to experiment with different crops or who aim to cater to niche markets. Additionally, these farms make great pilot facilities for research and development of larger farms.

The idea for Raiz Vertical Farm, located in Lisbon, Portugal, was originally conceived through Agritecture Designer. Co-founder and CEO Emiliano Gutierrez’s design integrates elements of greenhouse farming and container farming, stacking a translucent layer on top of a container to both expand the growing footprint and allow the plants to receive natural sunlight. Emiliano and his team opened their doors in July of 2022, and are experimenting with growing niche crops such as amaranth, a high-protein ancient grain. Their staple crops are herbs like dill and basil, and they hope to explore more and expand their offerings as they gain more experience in the sector.

In addition, the controlled environment means that container farms are less susceptible to pests and diseases, reducing the need for harmful pesticides and herbicides. In a recent interview Agritecture conducted with AmplifiedAg’s CEO, Don Taylor, Taylor referenced the advantage of container farming in their own development as a company. He said, “If we happen to get an infestation of Phytophthora or something similar, we can control it. With containers, we end up losing harvests from a couple of containers rather than the entire farm.”  

The cost of setting up container farms and vertical farms can vary greatly depending on the size, location, and equipment needed. However, in general, container farms tend to be less expensive to set up than vertical farms.

With Agritecture Deisgner’s Farm Modeling Tool, you can compare many different scenarios and get a financial estimate of what it would cost to open and operate a farm with various inputs. To illustrate the value of container farming as a viable competitor to vertical or greenhouse farming, we conducted three financial models in Agritecture Designer. All inputs were the same except for the farm type, and so, we can compare the financial summaries as equals to see the advantages and disadvantages of each model.

Each conceptual farm was located in Rockland, ME with a footprint of 10,000 square feet, with land costing the farm operator $50,000. Growing Genovese basil using nutrient film technique (NFT), each farm had medium insulation, supplemental lighting, and the owner acting as the head grower with farm laborers being paid $15 an hour, a competitive rate for the area.

When comparing the resulting financial models, it is easy to see why container farming is a viable option in the market. Vertical farming offered the highest maximum annual revenue, at $2,960,700, and the shortest payback period, at 2.76 years. However, it also had the highest CapEx and OpEx, at $3,392,108 and $855,293 respectively.

For the greenhouse farm, the estimated maximum annual revenue was $469,824 with an estimated payback period of 3.45 years. The CapEx and OpEx levels for the greenhouse farm were $654,530 and $136,805 respectively.

And lastly, for the container farm with 10 containers, the estimated maximum annual revenue was $1,289,781 with an expected payback period of 4.37 years. The CapEx and OpEx levels for the container farm were $2,012,872 and $785,937 respectively.

The vertical farm had the highest annual revenue, but the container was not far behind. The vertical farm, however, also had the highest CapEx at $3,392,108, over a million more dollars than the CapEx for the container farm. The greenhouse was much cheaper to get started than the other two options, but it would only generate about half a million dollars in annual revenue, which is a significantly smaller sum than the other two options. It’s also important to note that the container farm was made up of 10 containers overall, which determines the output of the facility. Since containers have such a small footprint, more could be added, and they could even be stacked vertically to maximize space. On a lot of this size, around 30 containers could be placed without stacking vertically, so the farm has room for expansion over time.

For those looking to get started with as little expenditure as possible, a single container farm, which has a much lower CapEx cost than any of the previously discussed models, is a great option. At just $161,223, it’s four times cheaper than the greenhouse, which had a CapEx of $654,530. A single container farm can reduce the high capital barrier to enter the industry, and can even allow the farm to grow over time with the option to add more containers.

If you are looking to open a farm but are in the early stages of planning, Agritecture Designer is a great option to compare different farming scenarios and obtain data-backed financial models with adjustable inputs. With the addition of container farming to our Farm Modeling Tool, you have even more facility types to explore. Planning is a key component of any emerging business, and with Agritecture Designer, you can explore all of your options before making a decision. Plus, you can contact equipment, service, and financing partners directly on the platform to get your business off the ground. Explore all the platform has to offer to determine whether a container farm makes sense for you.