September 11, 2023

By Lynda Kiernan-Stone, Global AgInvesting Media

Founded in 2012, Freight Farms realized that urban agriculture required a modular and scalable solution. Within two years, with the mission to democratize and decentralize the production of fresh produce, the startup developed its first vertical hydroponic farm inside an intermodal shipping container called the Leafy Green Machine. And after years of refinement, the company has arrived at its Greenery™ S container farm that is operated in connection with its farmhand® IoT automation software.

Today, Freight Farms is recognized as a pioneer in modular CEA with over 600 modular farms sold across 40 countries. Its diverse client roster includes hundreds of for-profit farmers as well as a growing list in segments such as education, hospitality, healthcare, grocery, food banks, and non-profit community organization.

The $43 million in external funding raised to-date by the company has allowed it to build an IP portfolio that is employed and operational in its modular platform. Through the company’s proprietary products and services encompassing equipment, software, and consumables, Freight Farms is working to optimize critical sustainability factors while delivering financial performance and scalability. 

As the company continues on its growth trajectory, it has entered into a binding letter of intent with Agrinam Acquisition Corporation (Agrinam) for a proposed business combination transaction that would bring Freight Farms public at a valuation of approximately $147 million. 

“Agrinam was formed with the focused mission to identify and merge with a differentiated agribusiness company with a strong track record and a sustainable financial model and we believe we have found that with Freight Farms and are very excited about where this company will be in the near future,” said Agustin Tristan Aldave, CEO, Agrinam. 

Rick Vanzura, CEO of Freight Farms, added, “We believe the potential business combination with an exceptional partner in Agrinam will enable us to more aggressively scale our business to deliver sustainable, hyper-local food production to more customers across the world.”

“Freight Farms has made significant progress over the past decade building an incredible technology platform with strong underlying economics. In addition, we’ve proven the efficacy of our model across a broad spectrum of customers and industries that is global in reach, with installations in 40 countries worldwide.”

Important to note is that Freight Farms makes the distinction that it is a technology provider, and not a grower, with a track record of customer economics. Differentiated from “warehouse” vertical farms, its business operates as a software-controlled, self-contained modular format.

Greenery S is a closed-loop hydroponic container farm that offers turnkey precision growing in a modular style that is easy to operate and generates attractive returns compared to a typical retail franchise model.

Their system is run by Farmhand, a proprietary automation software that provides easy access and transparency optimizing performance and crop yields while also giving owners/operators control and efficiency through mobile access to real-time and historical data and analytics. This software stack also collects and aggregates data across the farm network, enabling continuous crop yield and operational improvement. 

Together, this system offers a delivery to first harvest in as little as six weeks, as its efficient resource usage and the high productivity of vertical farming represent a self-contained farm delivering meaningful ROI generated from a low customer investment, and leading to multiple for-profit farmers experiencing payback in two-to-three years. 

“We are very excited about the partnership with Agrinam to take our business to the next level,” said Vanzura. “Their understanding of the agtech space coupled with a focus on sustainability and efficient use of resources is closely aligned with our mission and values, making them the ideal partner.”

Freight Farms’ technology has grown to over 500 commercially viable crops with lower capex compared to fixed warehouse vertical systems that have proven to historically be less flexible. The significant flexibility and scalability afforded by container farming is well positioned to fit a variety of customer needs in the face of global trends including climate change, food safety concerns, water shortages, and food insecurity. 

In addition to these benefits, Freight Farm customers also have access to the company’s Farmhand Shop – a one-stop solution developed by in-house plant scientists offering supplies, nutrients, and seeds in the firm of customizable kits or recurring subscriptions, all designed to optimize yields. 

Zach Morse, a Freight Farms board member and analyst with Ospraie Ag Science, the largest investor in the company, commented, “Ospraie Ag Science believes that end-customer requirements have created demand for the truly local and clean footprint that indoor farming can provide, and we have invested in those indoor agriculture companies that we believe can supply farmers with the technology, tools, systems, and inputs to meet customer requirements with high-returning unit economics.”

Morse continued, “At Freight Farms, we found a dedicated technology company that had developed and is continuously improving systems that enable their customers to grow profitably and cost-effectively hyper-locally, as evinced by the operational success and repeat business of their farmers. We’re very excited to partner with Agrinam on the next phase of Freight Farms’ growth as it becomes a platform company in indoor farming, which we anticipate to be accelerated by this potential business combination.”

~ Lynda Kiernan-Stone is editor in chief with GAI Media, and is managing editor and daily contributor for Global AgInvesting’s AgInvesting Weekly News and  Agtech Intel News, as well as HighQuest Group’s Unconventional Ag. She can be reached at lkiernan-stone@globalaginvesting.com.

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