Commercial Food-Focused Greenhouse Construction Abounds in U.S.

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Written by Eric Funderburk for IIR News Intelligence (Sugar Land, Texas)

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Summary

Commercial vegetable growers are building out greenhouse facilities in the U.S., with Rhode Island showing a strong current construction market and Florida preparing for a large greenhouse construction project later this year.

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A Sizable Construction Pipeline

Commercial greenhouse construction for salad and vegetable products means big business in the U.S. According to Industrial Info Resources data, there are more than $600 million worth of food-related commercial greenhouse projects currently under construction in the U.S. and another $3 billion worth planned for the future, although not all of these will move forward as planned.

A Leading Position from a Small State

Of the greenhouse projects presently under construction, the nation's smallest state, Rhode Island, takes an outsize share of the project spending, accounting for more than $170 million of investment.

Construction on Rhode Island's largest greenhouse project has been underway for more than two years, and the work is expected to be completed this summer. It's a big project, targeting multiple types of produce, including a 4-acre mushroom grow house, 5 acres each dedicated to cucumbers and lettuce, and 10 acres for tomato production. The site also includes a seed-processing facility. The undertaking from American Ag Energy Incorporated is expected to yield about 31 million pounds of food per year.

Tomatoes also are being targeted in another Rhode Island greenhouse project, this one coming from Rhode Island Growers LLC. The company last year kicked off a greenhouse construction project to support 14 million pounds per year of hydroponic tomato production. Construction is expected to be completed later this year.

Vertical Growing

CubicAcres LLC is taking a novel approach to greenhouse-based hydroponic lettuce production. The company last year broke ground on a greenhouse facility in Long Island, New York. Vertical growing will be name of the game, as CubicAcres is aiming for the facility to produce 3 million heads of lettuce per year from growth tower structures that measure around 30 feet high. Construction is expected to wind down this summer.

Future Construction

Industrial Info is tracking more than $3 billion worth of future U.S. greenhouse projects, although many of these of been given a low probability (0-69%) of moving forward as planned. However, many high- and medium-probability (70-99%) projects also feature, including another vertical growing project in New York. This one comes from Empire State Greenhouses LLC which this summer plans to ground on a vertically-focused greenhouse in Cobleskill, about 45 miles west of Albany. The circular "GigaFarm" will include 100 growth towers expected to yield around 8 million tons of food per year.

That project pales in comparison to the size of the largest food-focused greenhouse planned in the U.S., which is expected to begin construction this year in Sanderson, Florida. Plant Agricultural Systems LLC plans to construct more than 8 million square feet of greenhouse space, targeting leafy vegetables and vine crops. Construction is expected to cost around $750 million and take more than two years to complete. That may not be the end of the project, however, as Plant Agricultural Systems is considering a further expansion of the facility. However, this wouldn't begin until after the completion of Phase I, perhaps starting in 2029.

Key Takeaways

• Industrial Info Resources is tracking more than $600 million worth of food-related greenhouse construction underway in the U.S.
• Thanks to some large projects, Rhode Island is a hotspot for current greenhouse construction.
• The largest project on the books this year is set for Florida.

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About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, Industrial Info Resources is tracking over 250,000 current and future projects worth $30.2 trillion (USD).