Are freight farms profitable?
Between 60 and 65 percent of the Freight Farms customer base consists of those small business farmers — “entrepreneurs looking to run a profitable business, generate a hundred to $120,000 of revenue a year from their farm,” Woolard says.
What is the cost of a freight farm container?
+ How much does the Greenery S container farm cost? A 2021 Freight Farms Greenery S costs $149,000 (prices vary for international orders). Also consider the shipping fee, which varies based on your installation's distance from Boston.
Is shipping container farming profitable?
The facility types with least profitability reported were indoor vertical farms and low-tech plastic houses. Similarly, herbs and leafy greens were the least profitable crops. The combination operations (using multiple system types) were overwhelmingly unprofitable.
How much does a Growtainer cost?
The 20-foot Growtainers for microgreen production are priced from $65,000 and are fully equipped and plug and play. To operate in a Growtainer, growers need a flat surface and utility hookups, such as power and water, seeds, substrate and fertilizer.
How much does a modular farm cost?
Primary Farm starts from $238,000 +GST and our Vestibule from $38,500 +GST. For prices on all our other modules please reach out to the team. WHAT IS THE MODULAR FARMS HEATING SYSTEM? The HVAC system cools and does not heat.
Who owns freight farms?
Freight FarmsIndustryAgricultureFounded2011 in Worcester, MassachusettsFoundersJon Friedman Brad McNamaraHeadquartersBoston, Massachusetts , United States
How do I start a container farm?
12:1619:02Container Farming | The Good, The Bad, The Ugly - YouTubeYouTubeStart of suggested clipEnd of suggested clipOr your initial capital expense out into the future in the form of operational. Expenses it meansMoreOr your initial capital expense out into the future in the form of operational. Expenses it means you're going to have to do more work down the road to keep everything on the rails.
Where is freight farms located?
Boston, MassachusettsFreight Farms is located in Boston, Massachusetts, United States .
How much is a hydroponic container farm?
The containers usually cost $75,000 each, but as an early customer, Cooney got a deal. He paid $60,000 each -- or $300,000 total -- using a seven year, low interest, no money down loan from the Department of Agriculture.
What crop is the most profitable?
Top 13 Most Profitable Crops To GrowConsiderations for Small Farms.1) Mushrooms.2) Microgreens.3) Ginseng.4) Lavender.5) Saffron.6) Goji Berries.7) Wasabi.More items...
How much money can a hydroponic farm make?
Hydroponic farm systems generate an average revenue of $21.15 per square foot. Vertical farming systems earn an average of $41.16 per square foot, but that number can range anywhere from $2.13 to $100. Only 27% of indoor vertical farms make a profit. Meanwhile, half of all container farms are profitable.
What is the most profitable greenhouse crop?
7 of the Most Profitable Greenhouse CropsTomatoes. The most common greenhouse crop, tomatoes can also be quite prolific and, thus, profitable. ... Lettuce. ... Peppers. ... Cucumbers. ... Spinach. ... Herbs. ... Strawberries.
How much is it to buy a storage container?
A one-use or new container are naturally expensive than the used ones. On an average, a new 20ft container will cost you US $5,000. A used one will be anywhere between US $3,500 to US $5,000. The price may vary depending on the state of the container.
How much is a hydroponic container farm?
The containers usually cost $75,000 each, but as an early customer, Cooney got a deal. He paid $60,000 each -- or $300,000 total -- using a seven year, low interest, no money down loan from the Department of Agriculture.
What is a container farm?
Container farms are complete growing systems in a box, meaning farmers can get growing as soon as they are delivered and perform every farm-related task — from seeding to harvesting and packaging — right inside the container.
What is a CropBox?
The CropBox is a containerized agriculture solution. This system uses hydroponic technology to grow up to 18,000 lbs. of fresh produce. With automated lights, PH levels, heating and CO2 the CropBox can reduce growing times and provide year-round produce in any climate.
What can you grow in a freight farm?
One may also ask, what can you grow in a freight Farm? One Freight Farms Greenery is capable of growing lettuces, leafy greens, herbs, brassicas, certain root vegetables, edible flowers, and many other crops in any location, regardless of exterior climate. To date Freight Farms has experimented internally with over 300 different crop varieties.
How profitable are container farms?
Based on our research, we estimate that fewer than half of container farms are profitable. Although it depends on the size and market niche, profitability may not be the sole focus of someone operating a container farm.
How much did Cooney pay for the containers?
The containers usually cost $75,000 each, but as an early customer, Cooney got a deal. He paid $60,000 each -- or $300,000 total -- using a seven year, low interest, no money down loan from the Department of Agriculture.
How much electricity does the greenery use?
The Greenery uses an average of 160 kWh per day, depending on your climate. If your farm is on a commercial or industrial zoned lot, you may qualify for a lower electricity rate. You can also consider a solar installation to help cut costs.
What are some of the best crops to grow in the greenery?
These are just eight of the hundreds of varieties of crops you can cultivate in the Greenery. Lettuces, leafy greens, herbs, root vegetables, and flowers grow best - check out our crop guide for a full list. Tip: To make a realistic business plan, use comparative price points from your local market.
Do you work for free if you hire a farmer?
Tip: Regardless if you're the farmer or if you hire one, that labor cost should be accounted for in your profits - you don't work for free!
What is the most important thing to remember when operating the LGM as a business?
What we encourage our farmers to do is drill this number down into a cost per unit (unit depending on crop and described in the chart above). This number gives you a floor for pricing , meaning you’d never want to continuously sell your crop for less than what it took to produce. This is the most important thing to remember when operating the LGM as a business.
What crops can be grown in a leafy green machine?
To optimize all 320 square feet inside the container, we recommend growing smaller compact crops, like head and loose leaf lettuces, herbs and heartier greens like kale and swiss chard. That doesn’t mean larger crops can’t grow, but for those who are operating it as a business we recommend growing crops with a high turnover rate, which just means each farmer will have more produce to sell for profit.
What is the biggest variable that drives the economics of the farm?
But what is the biggest variable that drives the economics of the farm? Crop type. The buyer type (who the farmer sells to) comes in a very close second. We’ve talked at length about lettuce, but for this example we’re switching to a lower-price crop: basil. The low price of this crop can be overcome by packaging it in small units (picture 1 or 2 ounce clamshells of basil). When farmers choose to sell directly to end consumers (CSAs, farm stands etc.) they may command the highest price point for some normally low-price crops. Conversely, choosing to sell that same low-price crop in bulk to a wholesale produce distributor generally does not command a price above the “all-in” cost per unit - so don’t do that! Just keep in mind that the labor involved in packaging will increase costs.
How to introduce a crop to a new buyer?
For those farmers who are new to the market or for companies introducing a new product to their current buyer, they can choose to introduce their crop by offering it at a low introductory price. This limits the buyer's risk for purchasing this new product, enticing them to try it out. This also gives the farmer the ability to attract customers while not anchoring the price of their product too low, and furthermore, gives the buyer the ability to test the product. After a specified period of time, if the buyer is happy with the product, the price reverts back to the non-introductory (e.g., higher) price. In essence, you’re building your very own demand curves!
What unit of measure is yield?
You’ll notice that we measure yields by a unit dependent on the crop (heads, bunches, ounces etc.), but we’ve also converted the yield numbers into a standard unit of measure (pounds), across the board. It’s important to keep in mind that this is not how the market buys and sells all varieties of produce, but we wanted to give a relative measure that you could wrap your head around.
What are indirect costs associated with LGM?
Business Costs. In addition to operating an LGM, there are also indirect costs associated with running the LGM as a business. These costs are largely driven by our farmers and their chosen business model, so similar to the operating costs these are also going to range.
What are the variables that affect small business farmers?
The diversity in business plans influences the numbers significantly. Some of the other variables that have an impact are packaging, location, crop, and hired labor. While the numbers we are sharing have significant ranges, they still paint a good picture of how a business can be run using the Leafy Green Machine.
What is freight farm?
Freight Farms focuses on greens and herbs because they grow so quickly and thrive in the controlled environments of the containers. For example, one container has the capacity to grow more than 1,000 heads of lettuce per week, Friedman said. Plants like lettuce, spring mix, chives, kale, thyme, arugula, swiss chard, and even cannabis and flowers are being grown in containers.
How many acres of lettuce can one container produce?
Friedman said that one container can annually produce the equivalent of two acres of produce “if you’re looking at something like a head of lettuce equivalent because we can turn the production so many times versus a field. You can only have so many turns out there because the season only allows you to do so.”
How many freight farms are there?
What started out as an idea to use controlled environment technology to grow fresh produce in small spaces has grown to a community of more than 400 Freight Farms containers around the world. Freight Farms uses hydroponics and the vertical space available in the 40-foot shipping containers to grow food.
How much water do you need to grow a container farm?
Just 5 gallons of water per day and the right amount of LED lighting, carbon dioxide, nutrients and humidity can yield bountiful harvests in shipping container farms — no pesticides or herbicides needed.
When did Friedman start refinishing shipping containers?
Friedman said the company started by refurbishing old shipping containers after founding the company in 2013, but the supply of suitable used containers dwindled quickly and was not consistent or centrally located. He said there was also a risk that containers the company received would be structurally unsound. The company refurbished its last used shipping container for a farm in 2019.
What is the largest competition for freight farms?
Freight Farms’ largest competition is food shipped in from elsewhere, Friedman said, but that competition is lacking in many communities that are not near major transportation routes and interstates.
What is Farmhand software?
Farmhand is a software system that, said Freidman, “does the thinking for the farmer.” Farmhand and Greenery S were designed to work together and communicate information from sensors throughout the growing area and in the water and nutrient tanks. They implement the lighting, humidity, nutrient, water and temperature schedules that each operator chooses when setting up the system.
How to start a freight farm?
Part 1: Building Your Business Plan with Freight Farms. Building and writing your business plan is a key component to starting your Freight Farms project. Our Business Development Specialist Alex walked us through the steps of successfully structuring and writing a business plan. Part 2: Navigating the World of Farm Financing.
Where do farmers sell?
We’ve seen farmers sell to restaurants, grocery stores, at farmers markets, and through CSAs and online aggregators. Each one of these customers requires a specific sales strategy, packaging, and distribution. our Guide to Finding Customers outlines the process for the top three most successful customer types!
What is the first step in a farm business?
Building a strong plan is the first step to a successful farm business! We provide you with the tools you need to predict your crop yields, revenues, and expenses. This will help you understand the monthly and annual profits of your farming business.
Where does Dave sell his food?
Dave sells to restaurants in the remote mountains of Idaho.
Where do freight containers come from?
The containers come from Freight Farms, a Boston-based startup that outfits the boxes with lights, growing racks and irrigation systems -- creating what are essentially super efficient growing machines.
How much did Cooney pay for the containers?
The containers usually cost $75,000 each, but as an early customer, Cooney got a deal. He paid $60,000 each -- or $300,000 total -- using a seven year, low interest, no money down loan from the Department of Agriculture.
What questions come to mind when you think about shipping farm equipment?
There are many questions that come to mind when you’re thinking about shipping farm equipment. How much does it cost to ship farm equipment? How long will delivery take? What kind of truck and trailer will be used? Finding the answers to these questions can be points of pain for shippers in the farm industry.
What type of trailer is used for farm equipment?
As mentioned above, trailer types for farm equipment transport often include lowboys . However, these aren’t the only options. The right carrier will use the right equipment for your particular job. However, it is important to know that different kinds of equipment have different shipping requirements and require different trailers for hauling.
What is R+L Global Logistics?
R+L Global Logistics is ready to be your transport ally and help you overcome all kinds of challenges. From determining how much does it cost to ship farm equipment with a hassle-free quote process to arranging delivery, we’re here to guide you every step of the way.
Can you ship a John Deere tractor?
It takes the right equipment, the right tools and the right carrier to manage shipping a tractor. No matter whether it’s an oversize John Deere or a vintage Oliver, the logistics specialists at R+L Global Logistics can take care of the heavy lifting when you need to ship a tractor.
Can you load a walk behind harvester on a gooseneck trailer?
This will be an oversize load and you’ll need the right permits. Harvesters: Large, walk-behind harvesters can be loaded on a removable gooseneck trailer. They require the low clearance and extra strength. Loaders: Step deck trailers are a good option for moving loaders, as they can be driven on the trailer.
Can R+L transport agricultural equipment?
You’ll find that R+L Global Logistics can ship any farm on agricultural equipment you need to move . We can transport agricultural equipment including:
Is transporting farm equipment easy?
Transporting agricultural equipment isn’t an easy job. You need the right tools, the right equipment and often the right permits to get the job done. Because farm equipment is so important to farming operations, it needs to arrive on time and unharmed. This means having the right partner on your side is essential.
How do farmers make money?
Farmers almost always make money by selling pounds (or ounces) of produce. Rarely do they sell a number of plants rather than a weight.
Why is a lower price point good for farmers?
Obviously, a lower price point helps more aspiring farmers launch new businesses which will help to increase the supply of locally grown food around the world, which is good for everyone .
Why are container farms important?
That’s why it’s crucial that container farms purposefully provide adequate airflow, temperature controls, dehumidification, CO2, etc. to their units. That’s a challenge for most repurposed shipping container farms simply because of the extreme constraints the structure provides.
What is the common killer of container farms?
The common killer of container farms (or any modern farm that leverages technology) is unrealistic expectations about what the tech will do for them, how much their farms can produce, and what kind of labor is required to make it all work. Don’t forget, even technologically advanced farming is still farming!
What are the benefits of growing in a container farm?
Container farmers have a compact footprint. One benefit of growing in a container farm is that you don’t need a lot of land or a dedicated building to start. That means modern farmers or program directors can now drop one of these behind a restaurant or in a school parking lot.
Why is farm labor important?
There are two reasons to keep your farm labor-friendly: the first is that labor is money , and the second is that there’s nothing worse than working in a cramped, confined space for dozens of hours each week. It can be enough to drive you insane, or at the very least make you dread coming to work.
How to measure the economic potential of a farm?
The best way to measure the productive and economic potential of your future farm is to compare the capital expense divided by the pounds of produce. That will not only give you an idea of how much your system will yield, but will also allow you to conduct appropriate market research based on weight, not plant sites.
