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Commodity Investing

Top 4 Vertical Farming Stocks

As the world’s population grows, there are more mouths to feed. This has presented 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. 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. 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 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 (Nasdaq: ARFM)

AppHarvest

AppHarvest has a few of the largest indoor farms in the U.S. It has two 60-acre indoor farms. One is outside Richmond, Kentucky, and the other is in Morehead, Kentucky. On top of that, the company 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, along with cutting-edge technology.

One big benefit to this vertical farming stock 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.

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. It’s a hydroponics supplier, and 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.

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. The company also has vertical farm consultants. They help 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 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. This company is soon going public via a SPAC. To learn more about that process, feel free to click on that link.

Until this SPAC transaction closes, investors can buy into Spring Valley Acquisition (Nasdaq: SV). Once the deal closes, those shares will convert to AeroFarms shares under the ticker ARFM. This creates a unique opportunity to buy one of the best vertical farming stocks…

AeroFarms was founded in 2004 and is world leader in vertical farming. It’s helping to solve issues from 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 plant scientists monitor millions of data points every harvest. The company has also gained some protection with patents.

Buying Vertical Farming Stocks and New Opportunities

The companies above give great exposure to innovative farming. 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 output for produce 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. And whether you invest or not, you’ll likely benefit from these companies.

If you’re looking for even better investing opportunities, consider signing up for Manward Financial Digest. It’s a free e-letter that’s packed with investing insight. The founder and expert behind it, Andy Snyder, delivers big ideas that are easy to digest.


About

Brian Kehm double majored in finance and accounting at Iowa State University. After graduating, he went to work for a cryptocurrency company in Beijing. Upon returning to the U.S., he started working with financial publishers and also passed the CFA exams. When Brian isn’t researching and sharing ideas online, you can usually find him rock climbing or exploring the great outdoors.

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