2017 ASHS Annual Conference

Urban agriculture is becoming a growing trend. Recently there has been a popular trend towards eating local, deemed being a locavore, evidenced by a growing social movement. We examined why the number of urban farms are increasing and what business models urban greenhouses adapt to be profitable to determine trends within the sustaining businesses. While the benefits of buying food locally are unclear due to the economics of comparative advantages, consumer groups support urban agriculture for a number of reasons. These include to supporting local farmers, buying fresh food, knowing from where their food is coming, and respecting the environment. Another popular reason is to reduce food insecurity. Regardless of the strength of their consumer base, the number of urban farms is still low due to the high costs that urban farmers face compared to rural farmers. Not only is the land more expensive, but also the limited plot size and probable contamination of the land with lead and toxins essentially necessitates the use of a greenhouse with high investment costs. Cost challenges that many urban greenhouse farmers face include securing funding, finding economies of scale, and facing high capital and operating costs. Urban greenhouses typically either target niche markets, adapt a social business model, or utilize abandoned or low cost land to add value to their business and make a profit in a costly industry.