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Top 3 Vertical Farming Stocks to Buy in 2023

Top 3 Vertical Farming Stocks to Buy in 2023
  • PublishedMay 26, 2021

As the world’s population grows, there are more mouths to feed. This presents some big challenges in agriculture. We’ve continued to innovate and overcome, though. There have been some great investing opportunities and vertical farming stocks are up next.

In general, farmland has been a great area to invest in. To help explain why this is the case, here’s a quote from Mark Twain…

Buy land, they’re not making it anymore.

That’s been a good rule for investors to live by for centuries. We’re now managing land in much different ways, though. New forms of precision farming are taking root, and crop yields are increasing. On top of that, we now have the technology to grow produce more efficiently indoors.

To benefit from these big trends, you can check out this list of the top agriculture stocks. And there’s a little overlap with the list of vertical farming stocks below. The vertical farming companies on this list are delivering some unique farming products and solutions…

researching vertical farming stocks

Top Vertical Farming Stocks

  • AppHarvest (Nasdaq: APPH)
  • Scotts Miracle-Gro (NYSE: SMG)
  • CubicFarm Systems (OTC: CUBXF)
  • AeroFarms (Coming Soon?)

AppHarvest

AppHarvest has some of the largest indoor farms in the U.S. It has two 60-acre indoor farms. One is outside Richmond, Kentucky, and another in Morehead, Kentucky. On top of that, the company also has a 15-acre indoor farm in Berea, Kentucky.

With these farms, AppHarvest is working to cultivate fresh fruits, veggies and leafy greens. It’s still in its early stages, but the potential is huge. The company is using conventional agricultural techniques, alongside cutting-edge technology.

One big benefit to this vertical farming company is sustainability. The indoor-growing makes it climate-resilient, and there’s no agricultural runoff. It also uses up to 80% less water than traditional agriculture. This is an excellent vertical farming stock for the environmentally-conscious investor.

Scotts Miracle-Gro

As far as vertical farming stocks go, Scotts Miracle-Gro isn’t a direct play. It has a wide range of products and services. It has made some big strides into precision gardening and hydroponics, though. Both are vital for growing plants vertically indoors.

In 2018, Scotts Miracle-Gro announced the acquisition of Sunlight Supply, a hydroponics supplier. The deal came in at $450 million in cash and stock. In 2020, Scotts also acquired AeroGrow International, a hydroponics-maker.

Scotts Miracle-Gro has many reputable brands but it’s not resting on its laurels. The company is beefing up its indoor farming products. It has more than 100 on-staff research scientists, specialists and engineers, as well as partnerships with leading academic institutions.

This helps make Scotts Miracle-Gro one of the top vertical farming companies. It’s well positioned to grow and caters to both small and large growers. Although it isn’t a pure play vertical farming investment, this well established brand still provides some exposure to these exciting new technologies and developments.

CubicFarm Systems

CubicFarm Systems points out that 1.3 billion tons of produce rots in transport every year. We’re shipping food great lengths, but with modern technology, that’s no longer necessary. CubicFarm is building and selling automated growing machines. They’re used for fresh produce, nutritious livestock feed and plant propagation.

CubicFarm also uses hydroponic technology. It provides complete indoor agricultural systems. Additionally, the company has vertical farm consultants. They provide research and solutions for clients. On top of that, CubicFarm has an experienced leadership team.

If you decide to invest in CubicFarm stock, it’s a smaller Canadian company. It’s headquartered in British Columbia and its stock trades on the Toronto Stock Exchange (TSX). You can also buy shares of this vertical farming stock in U.S. over the counter (OTC) markets, though.

AeroFarms

There’s not much of a track record with AeroFarms, at least when it comes to trading publicly. The company planned on going public via a SPAC. To learn more about that process, feel free to click on that link.

AeroFarms planned to combine with Spring Valley Acquisition (Nasdaq: SV). Although, the company announced an end to that combination agreement. Nonetheless, this is an interesting vertical farming investment to keep an eye on. There’s a still a good chance it will become a publicly traded vertical farming stock down the road…

AeroFarms was founded in 2004 and is world leader in vertical farming. It’s helping to solve issues such as population growth, water scarcity, arable land loss and supply chain risks. AeroFarms also achieves up to 390 times greater productivity per square foot versus traditional farming.

To accomplish this, AeroFarms takes a data-driven approach. Its scientists monitor millions of data points every harvest. The company also gained some protection with patents.

Buying Vertical Farming Stocks and New Opportunities

The vertical farming companies above give great exposure to innovative farming techniques. Indoor growing will continue to expand along with the world’s population. The push for green stocks and sustainability is helping as well.

Advancing technology is making this a reality. Some costs are dropping, and produce output is increasing. On top of that, quality control is becoming more fine-tuned. Indoor growing is also helping reduce food supply chain issues.

As a result, the vertical farming stocks above might see some high returns ahead as this new growing trend takes root. Whether you invest or not, you’ll likely benefit from these companies. On top of that, there are many other investment opportunities to consider as well. Feel free to continue exploring our free research…

Written By
jhill

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