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Rising food prices influenced by several factors

What is influencing the increase in food prices and what can be done about it?

Rising food prices influenced by several factors

A confluence of global events and circumstances have some experts painting a grim picture for populations that already face food insecurity.

Recent spikes in food, fuel and fertilizer prices could lead to “destabilization, starvation and mass migration on an unprecedented scale,” said David Beasley, head of the U.N. World Food Program.

A recent U.N. analysis shows that “a record 345 million acutely hungry people are marching to the brink of starvation.” That’s a 25-percent increase from 276 million at the start of 2022, before Russia invaded Ukraine in late February. The number stood at 135 million people before the COVID-19 pandemic in early 2020, according to an ABC News article.

The war in Ukraine is having a continuing ripple effect on the global food supply. Russia and Ukraine together export 28 percent of fertilizers made from nitrogen, phosphorous and potassium, according to Morgan Stanley. The limited global supply has sent prices into the stratosphere — in some cases doubling the cost — and there are fears that high costs or the lack of availability will result in farmers using less fertilizer, leading to lower yields of commodities that are already constrained.

In early July, the Consumer Price Index report from the Bureau of Labor Statistics said that food prices in the U.S. increased 10.4 percent from June 2021 to June 2022.

Rising costs for any critical ingredient for running a farm — water, labor, fuel or fertilizer — translate to higher food prices. And when all four hit at the same time, disruption ensues, to the detriment of consumers, especially those who were already hanging on by a thread.

In all, worldwide experts fear crop yields will drop by 10-30 percent, and developing countries will be hardest hit.

The prevalence of “undernourishment” — when food consumption is insufficient to maintain an active and healthy life — continued to rise in 2021. The U.N.-commissioned report, “The State of Food Security and Nutrition in the World,” estimates that between 702 million and 828 million people faced hunger last year.

A grain shortage stemming from the Ukraine conflict is also driving up the cost of basic foods and other commodities, and corn and wheat are not getting out to the market because the Black Sea is closed. To top it off, drought conditions are crippling agricultural operations in several regions known for high output.

There’s a dearth of issues to navigate. But as The Shelby Report points out, crises stoke innovation. Agricultural adaptation is being employed, including the use of hydroponic container farms housed in upcycled shipping containers. The controlled-climate farms allow for uninterrupted, decentralized growing year-round and provide a stable environment to ensure reliable yields. Smart irrigation systems are being used more than ever, and data is driving decision-making at unprecedented levels in order to maximize available resources. Responses to climate change vary by location and commodity. Learn more about how the USDA is assisting food producers.

FarmBox Foods makes appearance on ‘Good Morning America’

Good Morning America visited FarmBox Foods’ headquarters to explain how businesses and nonprofits are using technology to sustainably grow food near the consumer year-round.

GMA Visits FarmBox Foods to Talk ‘Farming Without Harming’

Good Morning America visited FarmBox Foods’ headquarters to learn how businesses and nonprofits are using technology to sustainably grow food near the consumer.

ABC News Chief Meteorologist Ginger Zee spoke to FarmBox Foods CEO Rusty Walker June 20 about the company’s mission to build high-tech indoor farms that provide food security year-round for those without reliable access to nutrient-dense food.

(Watch the GMA appearance here)

Zee also interviewed representatives from two FarmBox Foods customers, Natural Grocers® and Centura Health, about their use of Vertical Hydroponic Farms, which provide a hyperlocal source of fresh produce while reducing environmental impacts and unpredictability associated with traditional farming. The farms are housed inside upcycled, insulated shipping containers that are outfitted with plumbing, electrical and sensors to control conditions inside.

By growing food on site, the companies that use FarmBoxes are avoiding supply chain disruptions, reducing food sourcing costs, improving access, and helping to eliminate food waste because the veggies get to the plate much quicker.

The controlled-climate container farms provide a perfect growing environment for the plants and shield them from weather and climate impacts, including drought, heat waves and flooding.

Natural Grocers is growing organic lettuce behind its store in Lakewood, Colo., mere steps from the display case, and plans to expand the program elsewhere. Centura Health, meanwhile, owns three Vertical Hydroponic Farms and uses them to produce food for hospital patients and visitors, and to provide nutritious produce to food banks in the communities they serve.

Fighting Back Against Hunger and Improving Food Access

“The world is at a critical juncture.”

That’s the headline of an article about the state of food security and nutrition in the world. In painstaking detail, the Food and Agriculture Organization at the United Nations uses the article to describe how the number of people affected by hunger globally increased in 2020 due to the COVID-19 pandemic.

It estimates that between 720 million and 811 million people faced hunger. If you go with the middle of the projected range — around 768 million — 118 million more people faced hunger in 2020 than in 2019. How does this happen and what’s being done about it?

The Food and Agriculture Organization at the United Nations says that unless bold actions are taken to accelerate progress, especially actions to address major drivers of food insecurity and malnutrition and inequalities affecting access to food, hunger will not be eradicated by 2030, as the U.N. had hoped.

After remaining virtually unchanged from 2014 to 2019, the prevalence of undernourishment climbed to around 9.9 percent in 2020, from 8.4 percent a year earlier, the article says.

According to FoodBankNews.org, all of this activity is happening against a backdrop of heightened emphasis on nutrition from the USDA, which in mid-March released a report outlining its commitment to nutrition security (in addition to food security). The USDA noted the importance of nutrition in fighting diet-related disease, which is a leading cause of illness in the U.S., accounting for more than 600,000 deaths each year, or more than 40,000 each month.

Sadly, the pandemic continues to expose weaknesses in our food systems, especially when it comes to access. New farming practices, including controlled-environment agriculture, are increasingly being recognized as a potential solution to fill the gaps and avoid supply chain delays entirely.

Strategically placing container farms in and around population centers could have a dramatic effect on providing a sustainable and secure source of nutrient-rich food. These farms can produce 200-300 pounds of fresh food weekly and help feed people in marginalized communities. They can also be used to help train the next generation of urban farmers and create jobs, providing ancillary benefits that can reverberate for years to come.

Farming Solutions for a Sustainable (and Less Scary) Future

Farming Solutions are needed – It seems every day you come across a news story that paints a very bleak future for traditional farming and the consumers who benefit from it.

We’ll briefly explore the many challenges facing the agricultural industry, but we’ll also posit some potential ways for farming operations large and small to adapt to changing times and conditions.

Shifting climate patterns are making it vastly more difficult to predict whether a crop will make it to harvest. Heat waves, hail storms, cold snaps and floods have become more pervasive and intense in recent years. Even crops that may not be directly affected by catastrophes, like the severe drought currently gripping the western portion of the U.S., are being indirectly impacted by residual factors, like smoke from wildfires.

We’re also facing other crippling issues without a foreseeable fix. Supply chains that support agriculture have been stretched to their limit since the beginning of the pandemic for a variety of reasons, including transportation availability, labor shortages, and associated delays affecting raw material sourcing. And the skyrocketing cost of fertilizer is further complicating matters for traditional farming operations and having an outsized impact on already-thin profit margins.

But what if there was a way to circumvent these issues using innovations in agtech? It sounds impossible, and while it comes with its own set of challenges, indoor growing, especially in urban areas, could be a big part of the answer going forward.

Science and tech have come a long way in the last decade (hello, sensor technology!), allowing growers to do much more with much less in a smaller footprint. And hyperlocal farming means produce grows near the consumer, eliminating supply chain-related woes. Instead of spending the first half of its shelf life in transit, veggies get to the end user much quicker, resulting in less food waste. Local growing also reduces the need to burn fossil fuels to get food to its destination, and empowers communities to gain more control over their own food supply.

It’s hard to put a value on security and reliability, and we certainly won’t attempt to, but controlled-environment agriculture allows people to harvest large yields year-round without external variables getting in the way. There’s also no need for fertilizers or pesticides, which takes possible contamination of drinking water out of the equation.

The practice is gaining momentum worldwide and already having an impact on sourcing for grocery chains, hotels, hospitals, restaurants and food banks. Likewise, farmers are embracing the technology because it provides a security blanket in uncertain times.

Personal values, experience lead new executive VP Joseph Cammack to FarmBox Foods

It’s a mix of professional experience and personal values that brought Joseph Cammack to FarmBox Foods.

As a teen, Joseph took a job on a farm in eastern Washington and quickly learned the value of hard work while growing and harvesting wheat, barley and garbanzo beans. His interest in farming and the impact of nutritious food on the overall quality of life for people worldwide is in lockstep with FarmBox Foods’ mission of providing a secure source of food to all, regardless of their circumstances.

Joseph’s strong entrepreneurial spirit manifested itself early in life; he earned money running lemonade stands and mowing lawns as a kid. Later, while pursuing a degree in business management with a double emphasis in entrepreneurship and supply chain management at Brigham Young University-Idaho, he launched his own startup and helped grow it into the successful company it is today. Joseph even created a program that supports up-and-coming entrepreneurs and gives them the ability to test the efficacy of their business model before investing significant time and money.

His experience at small, large and medium-sized businesses has provided valuable insight into what drives a company’s success. It also helped him determine where to aim his skills while helping to implement Centura Health’s food security initiatives in Colorado. Joseph came to the FarmBox Foods team in March 2022 as executive vice president, and is helping further expand the reach of the tools that provide farm-fresh food to communities in need.

“It’s mission-driven, and that’s what really drove me to pursue the opportunity to join the team,” he said. “I’m always looking for a purpose greater than myself.”

When he’s not at work, the married father of two children plays basketball, hunts and goes on family hikes. He is also an avid reader and a movie buff with an affinity for action and sci-fi flicks.

Drought, flood impacts create uncertainty for food producers

An alarming pattern has emerged in the farming industry over the last two decades, and experts believe the impact on food production won’t relent anytime soon.

A recent analysis of data from the U.S. Department of Agriculture shows that payouts to U.S. farmers for crops destroyed by droughts and flooding climbed by more than 340% between 1995 and 2020. During that time period, farmers received over $143.5 billion in federal crop insurance payments, according to the Environmental Working Group, a nonprofit that analyzes research data and spotlights breakthrough findings to inform decisions that govern everyday life.

While the conditions threaten the current livelihoods of farmers across the country, there are also intangible, permanent effects that can’t be ignored, such as the exodus of families who have been farming for decades and, in some cases, centuries. They’re simply giving up due to variables that are beyond their control.

The EWG points out that while crop insurance provides a crucial safety net for farmers, the program is doing little to mitigate climate-related risks. Taxpayers pick up about 60% of premiums, which means farmers cover the other 40% to get a crop insurance policy. EWG says the “costs are expected to go up even more, as climate change causes even more unpredictable weather conditions,” according to an article on CommonDreams.org.

This inevitability has decision-makers at the federal and state level considering drastic alternative measures, especially ones that help farmers adapt to changing conditions, enabling them to produce crops regularly without external factors.

One of those solutions is farming in controlled environments that eliminate outside impacts and promise reliable yields. Shipping containers are being repurposed and outfitted with a network of sensors and high-tech systems that regulate temperature, humidity, nutrient concentrations, watering and lighting. They enable farmers to grow food year-round — regardless of weather or climate — and drastically reduce the amount of water needed to grow crops, because the water is recycled and filtered and not lost to evaporation or transpiration.

“We see ourselves not as a replacement for traditional farming, but rather a tool that allows farmers to have that steady source of income throughout the year, without the stress,” said Rusty Walker, CEO of a Colorado-based company called FarmBox Foods, which designs, manufactures and sells enclosed hydroponic farms.

The containerized farms are also a critical element for crop production on islands, which currently import the vast majority of their food. The automated farms essentially add acreage to an island for the purpose of food production, cutting out potential supply chain issues and shipping costs that inflate food prices.

As Congress develops a new farm bill in 2023, the EWG is calling on lawmakers to consider focusing on “how to effectively fund farm programs so that farmers can adapt to and fight the climate crisis.”

FarmBox Foods Unveils Plans for Hydroponic Fodder Farm

FarmBox Foods is developing a hydroponic fodder farm that will be sold beginning this year. It will produce roughly 1,000 pounds of fodder per day.

FarmBox Foods Unveils Plans for Hydroponic Fodder Farm

Container Farms on School Campuses – Community Supported Agriculture

With a foundation in technology and science, there’s greater interest in container farming among students of all ages. Controlled-climate farming enables people to grow food almost anywhere in the world, helping to eliminate food deserts.

Container Farms on School Campuses – School districts and teachers are always looking for new and innovative tools to capture their students’ attention and promote enthusiasm for learning.

Teaching students how their education is interwoven into later professional success just might bring purpose to those who currently find none in a traditional classroom. When you place students in a setting with engaging hands-on projects that give them practical experience, the potential for future success is limitless.

An operating container farm has a unique ability to touch multiple subjects and areas of interest for young students, especially those who want to find ways to better our world through science and tech. A container farm shows the next generations how to do more with fewer resources by engineering concrete solutions that promote sustainability. These applications have positive real-world implications, including improving our ability to feed people in food deserts and reducing the use of fossil fuels for shipping food over long distances.

Emerging technologies, including those that rely on sensors, have opened up new avenues and ideas and solutions for longstanding problems. This is an exciting prospect for a generation that increasingly is looking to eschew the typical 9-to-5 office grind and, for lack of a better term, get their hands dirty.

From using cultivation methods that require less energy and water, to developing a solid business plan, to maintaining the mechanisms that enable containerized farms to thrive, to demonstrating and quantifying the sustainability of such operations, there are many skill sets needed to make the endeavor a success.

Adding a container farm to a school campus offers high-level learning opportunities in perpetuity and equips students with expertise and experience that few other young professionals or college applicants can claim. It’s a tech-driven differentiator for schools and districts that pride themselves on thinking outside the educational box, and it could produce a wave of future entrepreneurs.

Today, container farming is a glimpse into the future. Soon, it will be the new normal, and it’s time that students of all ages get introduced to concepts that can help achieve progress that will benefit humankind.

What are the benefits to schools?

Equipping future generations with the ability to use science and technology to grow food for underserved populations.
Feeding students fresh, nutrient-dense foods.
Reducing costs associated with purchasing transported foods while enabling schools to cheaply grow their own.
Providing foods for students in need to take home with them so they will have quality food they grew themselves.
Create revenue streams for the school through school farmers markets all year long.

Container Farms on School Campuses — An operating container farm has applications to almost every school subject imaginable, from math to science to engineering.

View The FarmBox Gourmet Mushroom Container Farm

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Suttons Vertical Gardens – No shipping required: Container farm provides fresh greens directly to community

Tracking the rise of community-supported agriculture, or CSAs.

From the onset of the COVID-19 pandemic, fresh vegetables were hard to come by in rural areas outside of Halifax, Nova Scotia. The cost of the produce that was available began to increase, and the quality was decreasing.

It was then that Kris and Brenda Sutton circled back around to an idea that Kris had researched a few years earlier: vertical farming.

They learned that growing produce in the community where it’s consumed eliminates supply chain issues from the equation and can give customers peace of mind knowing where their food is coming from. It also means consumers get fresh, nutrient dense produce compared to those being shipped in, losing nutritional value as they are transported. Additionally they learned that the vertical farms — housed inside insulated, controlled-climate shipping containers — can operate year-round, regardless of the season, allowing for quality and consistency for the food.

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The idea was tossed around for a short time between the husband and wife, but after Kris was briefly put off his work as an airplane mechanic following a back injury, he laid on the couch and daydreamed more and more about running his own vertical hydroponic farm. He saw this career as a less physically demanding and more rewarding one. His “happy place” during recovery was thinking about “getting back to gardening and planting seedlings in the Spring.”

Kris and Brenda decided to contact and visit a nearby vertical farm and quickly embraced the concept and all it could offer.

“She was more excited than I was at that point,” Kris says, then adds, “well, close. On the same level.”

The owner of the container farm they visited, however, pointed out some of its inefficiencies, and recommended buying a farm from their competitor, FarmBox Foods, which offers a system that requires less labor, is more efficient and can produce larger yields.

Months later, the daydream became a reality when a FarmBox Foods container farm was placed in their backyard. Within weeks, the first crop was on its way and Sutton’s Vertical Gardens was officially in business.

Together Kris and Brenda developed a start up plan that includes selling a variety of lettuces to local grocers and restaurants between Halifax and Enfield, Nova Scotia. Sutton’s Vertical Gardens also has plans to further serve their community in the future by hopefully offering the container farm as a venue for school field trips, volunteer experience and educational purposes.

”Yes, we want to make money and have a livelihood but we also want to try and educate and inspire others to be farmers, innovators, and entrepreneurs. Who better to start sharing these ideas with but our future generations?!” Brenda said.

Kris, the business’ main farmer, who comes from a family of green thumbs and has an existing 14-by-24-foot greenhouse filled with bell peppers, cucumbers and tomatoes, gets up at 5:30 a.m. every morning and embarks on the shortest commute he’s ever had. He walks to the FarmBox Foods container farm in his backyard in Enfield, NS, a mere 30 feet away from the fenced-in play area for the Sutton’s adorable odd couple Boston Terrier and Great Dane, and walks into his new office.

The fresh scent and the sight of the ever growing and changing plants are a daily reminder that the Suttons are right where they should be, creating something they’re proud to soon be sharing with their local communities.

“They always say ‘try to find a job where you do what you love and it will never feel like work,’” Kris says. “I feel very lucky to be able to say I’m doing just that.”

Learn more by following Sutton’s Vertical Gardens on Instagram and Facebook.

Sutton’s Vertical Gardens grew lettuce for its first crop.

View The FarmBox Gourmet Mushroom Container Farm

View Mushroom Farm

Rise of Community Supported Agriculture During Pandemic a Signal from Consumers

Tracking the rise of community-supported agriculture, or CSAs.

From the outset of the pandemic, Community Supported Agriculture programs throughout the country saw a surge in demand as the worldwide food supply chain ground to a halt. Health-conscious consumers wanted to make sure they had access to a reliable source of fruits and veggies, and farms large and small in communities across the country were suddenly booming.

CSAs also provided a convenience factor, as people no longer had to brave the madness of the grocery store during COVID-19 related restrictions. And instead of selecting from display cases filled with questionable produce that has lost most of its shelf life and nutritional value in transit, consumers found growers right down the street — and many of them haven’t looked back.

hydroponic container farms - community supported agriculture

Community-supported agriculture is made much easier by the trend of container farming, a fast-growing market that has buy-in from a broad spectrum of producers and end users. Natural Grocers recognized the benefit of growing vegetables on site at its stores, and partnered with Colorado-based FarmBox Foods, a manufacturer of automated container farms that grow leafy greens, peppers, culinary herbs and even gourmet mushrooms.

CSAs offer membership to both individuals and suppliers. Members pay an upfront fee in return for a share of what the farm grows and harvests during a specific season.

According to Vera Fabian, an operator of a CSA in Cedar Grove, North Carolina, who was interviewed for an article for Eater.com, demand for CSA membership is even higher this year than it was in 2020.

Learn more about CSAs at www.localharvest.org/csa/.

Year-round community gardens can operate as CSAs

View The FarmBox Gourmet Mushroom Container Farm

View Mushroom Farm