Why Vertical Farms Are Failing — And What The Future of Farming Automation Looks Like

Vertical farming was supposed to change agriculture — sustainable, high-tech, and local food production.

But over the past few years, the industry has seen widespread failure.

Companies like AeroFarms, Bowery Farming, Plenty, and AppHarvest have filed for bankruptcy, downsized, or shut down operations entirely.

Not because indoor farming is impossible — but because many built systems that were over-complicated, too expensive, and disconnected from real farming economics.

Why Vertical Farms Are Failing

1. Automation Without ROI

Massive investments in robotics, AI monitoring, conveyor systems, and harvesting automation were made before proving the business model worked.

Automation only delivers value if it reduces labor, increases consistency, or enables scale — not just because it looks impressive.

Source: AgFunder News, AeroFarms Bankruptcy Filing, 2023

2. Energy Costs Crushed Profit Margins

Energy became the single largest operating cost for most vertical farms — with monthly energy bills between $10,000 to $20,000 for small and mid-size facilities.

Lighting, HVAC, pumps, and controls running 24/7 created unsustainable overhead.

Source: iFarm, Vertical Farm Energy Use, 2024 Source: Wired, Vertical Farming’s Energy Problem, 2023

3. Overexpansion Without Proven Profitability

Companies like AppHarvest built multiple mega-greenhouses before demonstrating profitability at a single location.

This drained cash, increased debt, and exposed operations to significant risk.

Source: TechCrunch, AppHarvest Bankruptcy, 2023Source: PitchBook, Failed SPAC Vertical Farms, 2024

4. Maintenance Complexity Increased Costs

Over-automated systems required expensive proprietary parts and specialized labor for maintenance and troubleshooting.

Instead of reducing labor, many systems increased downtime and support costs.

Source: Greenhouse Grower, Vertical Farming Startup Failures, 2024

5. Low Margin Crops in High-Cost Facilities

Most vertical farms grew lettuce, herbs, or strawberries — crops with slim profit margins that couldn’t support highly automated, multi-million dollar facilities.

Source: AgFunder News, Vertical Farming Profitability Challenges, 2024

The Future of Farming Automation Looks Very Different

The future of successful farming will not be built on closed, proprietary systems.

It will be built on open, modular platforms that give growers control, flexibility, and scalability.

This is what Advanced Autoponics is building.

How Advanced Autoponics is Building The Future

We’ve moved away from selling a complete hydroponic hardware solution.

Instead, we’ve opened our automation and cloud platform to all growers, OEMs, and equipment manufacturers — regardless of what system or equipment they use.

Automation should work for your farm — not force you to change it.

Built To Communicate With Any System

Our platform supports industry-standard protocols including:

• Modbus

• OPC UA

• MQTT

• BACnet

• Ethernet/IP

• SAP

• AWS

This allows seamless integration with pumps, HVAC, nutrient dosing systems, sensors, lighting, PLCs, and more.

We also provide API and webhook integrations — allowing data to flow into your existing ERP system, AWS cloud infrastructure, or other company-specific platforms.

This makes Advanced Autoponics automation future-proof and cloud-ready.

Automation That Works — And Is Easy To Fix

Unlike traditional providers, we use industrial-grade, non-proprietary components that any local electrician, controls engineer, or automation contractor can support.

Benefits include:

• Standard replacement parts available locally

• No locked-in proprietary hardware

• Troubleshooting tools for your team

• Repairs handled by local automation teams or electricians

• Minimal downtime and reduced support costs

Automation should empower growers — not lock them into long-term service contracts.

Rapid Configuration — Deploy New Features In Minutes

Adding a new sensor? Adding a new control button on your HMI?

With Advanced Autoponics, growers can add new functionality in minutes — not weeks.

Our platform allows:

• Adding new devices without rewriting your entire control system

• Deploying new control buttons or features directly through our platform

• Scaling your system incrementally as your farm grows

This allows for incredibly fast customization, easy updates, and rapid deployments — giving growers ultimate flexibility.

Real Benefits for Growers & OEM Partners

Advanced Autoponics Delivers:

• UL & CE certified industrial automation systems

• Real-time cloud dashboards for monitoring & control

• Modular hardware that grows with your operation

• Open platform architecture ready for OEM collaboration

• Easy integration with ERP systems or AWS cloud infrastructure

• Local serviceability by your electricians or automation teams

• Add new features and buttons in minutes — not days

• Automation at a fraction of traditional system costs

Final Thought: Automation Should Empower Growers — Not Limit Them

The failures of vertical farming were not failures of technology — they were failures of strategy.

Advanced Autoponics builds automation for agriculture — focused on profitability, simplicity, and scalability.

We let growers control their infrastructure.We make it easy to service and expand.And we connect systems across the farm, the cloud, and the future.