At first blush, vertical farms are more expensive to build than greenhouses — sometimes up to 10 times as costly. Vertical farming costs $ 2,200 to $ 2,600 per square meter
of cultivation bed space, while high-tech greenhouses cost $ 250 to $ 350 per square meter
of cultivation space. Therefore, depending on the specific economics of your location and market, the ROI on vertical farms may be a longer-term proposition.
However, there are areas in which vertical farms actually save money vis-a-vis traditional farms and greenhouses
. One of these is labor cost, which can be very high in some areas, and which automated vertical farm technologies reduce significantly. Because of proximity to the end-user, vertical farms also significantly reduce logistics costs. A higher-quality product made in a more controlled environment can also fetch higher prices on the market. Payback periods on vertical farms can vary widely, so use iFarm’s handy calculator
to get a custom estimate for your location!