GROW MORE, EARN MORE FASTER WITH VERTICAL FARMING

Increase a faster investment pay period for with better cap x strategies

Planning Your Flower Production Rooms


When planning your cultivation a great place to start is carving up your flowering rooms. Rule of thumb take 50% of total square feet of the building and use it for flower production. Maximize the potential amount of flower output by using mobile vertical farm racking.


Planning Tip: Be sure to take in account for property constraints such as the total amp load available, ceiling heights and budget to best drive the numbers that work best for you. Some projects are planned with expansion in mind down the road. In that case its good to know your end game with the business and plan accordingly in a phased roll out approach. 



Case Study

The vertical farm in the study below uses mobile horizontal vertical tiered racking that moves back and forth on a track system to create aisle ways increase square feet of grow area.


Single Tier – 32′ x 31′ Flower Room Snapshot


Apply The Vertical Canopy Multiplier


Now that we have (1) layer of canopy we can now compare vertical tiered production data below for the same room size. We are assuming ceiling height is 15′ and we are using 13′-14′ mobile vertical racks.  Grow room total cubic feet: 25,600 ft3


Single Tier – 32′ x 31′ Flower Room Snapshot

Tiers/Levels 1
Room Total Size 992 sf
Total Canopy 576 sf
Total 500w 4x4 area LED Configuration 36
Total Wattage 18,000w
Total Tonnage Dehumidify/HVAC
7.2
Double Tier – 32′ x 31′ Flower Room Snapshot
Tiers 2
Total Room Size 992 sf
Total Canopy 1,152 sf
Total 500w 4x4 area LED Configuration 72
Total Watts 36,000w
Total Tonnage Dehumidify/HVAC 14.4
Three Tier – 32′ x 31′ Flower Room Snapshot
Tiers 3
Total Room Size 992 sf
Total Canopy 1,728 sf
Total 500w 4x4 area LED Configuration 108
Total Wattage 54,000w
Total Tonnage Dehumidify/ HVAC 21.6
Three Tier – 32′ x 31′ Flower Room Snapshot
Tiers 4
Total Room Size 992 sf
Total Canopy 2,304 sf
Total 500w 4x4 area LED Configuration 144
Total Watts 72,000w
Total Tonnage Dehumidify/HVAC 28.8

Example Pro-Forma Comparison


Results can be varied due to market conditions and pricing this example pro forma is for planning purposes only.

Assumptions:

  • Price per unit of $1,800 per pound of biomass  
  • COG is 50% of gross profit
  • Harvest per year: 5.5

Reminder the Total Cubic Feet of the grow room: 25,600 ft3




Total Flower Canopy SqFt 1,152
Total Watts Per SqFt 31.25
Lights Per 16 SqFt 1
Lbs Per 16 SqFt 1.5
Harvest Per Year 5.5
Price per unit (LB) $1,800.00
Cost of Goods 50%
LB per harvest 108
LB per year 594
Total Annual Revenue $1,425,600
Cost of Sales $712,800
Annual Gross Profit $712,800

Total Flower Canopy SqFt 1,728
Total Watts Per SqFt 31.25
Lights Per 16 SqFt 1
Lbs Per 16 SqFt 1.5
Harvest Per Year 5.5
Price per unit (LB) $1,800.00
Cost of Goods 50%
LB per harvest 162
LB per year 891
Total Annual Revenue $2,138,400
Cost of Sales $1,069,200
Annual Gross Profit $1,069,200

Total Flower Canopy SqFt 2,304
Total Watts Per SqFt 31.25
Lights Per 16 SqFt 1
Lbs Per 16 SqFt 1.5
Harvest Per Year 5.5
Price per unit (LB) $1,800.00
Cost of Goods 50%
LB per harvest 216
LB per year 1,188
Total Annual Revenue $2,851,200
Cost of Sales $1,425,600
Annual Gross Profit $1,425,600


Key Vertical Canopy Multiplier Takeaways


When it comes to your facility and business it important to know your strengths and weakness. When going vertical plan around your constraints and invest in proven methods to reduce your risk and better maximizes your yearly revenue potential. The (3-4) tier grow rooms accelerate the payback period on investments by increasing the annual gross profit potential.


In our 32′ x 31′ vertical farm example the (1) tier of canopy pro-forma annual gross revenue hit $356,400. By adding vertical tiered racking to the same room the annual gross profit potential increased substantially.


See below:


$712,800 (2) tiers

$1,069,200 (3) tiers

$1,425,600 (4) tiers

Pros:

More profit faster.  The substantial increase in yearly revenue is also year after year so the accumulated profit gains continue for the lifetime of the operation and additional profit far outweighs the initial larger cap x investment if executed properly.  

Maximizing the big ticket investments for lighting and low heat remote power reduces the HVAC and dehumidify requirements saving on the total infrastructure project costs.  

In our experience between 2,000 and 2,500 sf of flower canopy in a cubic area is the sweet spot for maximizing HVAC and dehumidify redundancy and expenses as well as managing harvest rotations.

Cons:  

High risk for crop failure when using 3-4 tier flower racks If not using a low heat remote power LED lighting.  The risk for environment failures in 2-4 tier flower rooms is the added heat in the plant canopy due to high powered LED lights and power sources on the lights.  This excess heat can cause uncontrolled temperature and humidity spikes and swings and requires elaborate and expensive air flow systems which adds to the initial cap x costs as well as op x energy expenses.  If the environment control for the wattage and canopy sf is not planned correctly it is very expensive to fix or upgrade afterwards.  

USING HIGH-FREQUENCY FERTIGATION TO PROMOTE BETTER DRY BACK
Enhancing Root Health and Yield through Precision Irrigation and Moisture Management