The landscape of Controlled Environment Agriculture (CEA) in the U.S. is evolving rapidly, driven by both technological innovation and significant challenges. Joe Swartz, Vice President at AmHydro with 40 years of hands-on experience as a commercial grower, reflects how the landscape has changed and his journey matured with the development of CEA, from niche interest to a growing agricultural force.
Joe, who started as a fourth-generation farmer in Massachusetts, built his first hydroponic greenhouse in 1984. "People in the U.S. didn't know much about hydroponics or CEA at the time," he recalls. "There were a lot of misconceptions, and few commercial growers making a living using these techniques." Over the years, he became a consultant to the expanding CEA industry, helping to steer its growth and direction.
A legacy of innovation at AmHydro
Joe's role at AmHydro, specializing in hydroponic systems, has allowed him to blend his practical growing experience with the company's technological vision. Founded in 1984 in Northern California, AmHydro has long been focused on creating commercial hydroponic growing systems. Joe joined the team in 2015, inspired by their shared mission to help growers succeed, not just through products but through finding tailored solutions. "It wasn't about manufacturing a certain type of growing system and selling it," says Joe. "It was about helping growers and elevating the industry in the process."
This philosophy of supporting farmers with practical, customized solutions is important in the CEA industry, which encompasses a wide range of technologies, from hydroponics to vertical farming. "CEA is a wide array of tools, and all have value, but they must be selected appropriately," he explains. AmHydro's approach is to guide growers in choosing the right technologies for their specific needs, avoiding what Joe calls "implementing technology for technology's sake."
Over-automation can be a thing
One of the main challenges facing CEA, particularly in the U.S., is the overabundance of advanced technology that often doesn't translate to practical results for growers. Joe highlights that while automation can lower labor costs and improve food safety, many systems are overly complex, expensive, and prone to technical failures. "Most growers have asked for simpler systems that are more reliable and less prone to failures," he notes.
To address this, AmHydro has developed a flexible, scalable automated system that allows growers to automate certain processes while retaining the option of manual control over others. "It's about providing the right level of automation for the grower's specific needs," says Joe. This approach, he adds, is crucial for making automation accessible and effective, particularly for small to mid-scale operations.
Practical tools and software
AmHydro also develops farm management software that helps growers manage the multiple tasks of a CEA operation. "Managing a controlled environment farm is very complex," says Joe. Growers not only have to oversee crop growth, integrated pest management, and food safety but also business management tasks such as tracking inefficiencies and preventing crop loss.
AmHydro's tablet-based software is designed to streamline these processes by allowing growers to schedule crops, assign tasks to laborers, and track every step of the growing process. It also includes features for investors and management to monitor farm performance. "We wanted a simple tool that helps growers improve productivity using their own data, but without requiring extensive training to use," he explains.
Challenges in the U.S. CEA industry
While innovation is a force for improvement, the industry in the U.S. faces significant challenges. According to Joe, access to capital is one of the most pressing issues, particularly for small-scale growers. "The current economic situation in the U.S. has made it more difficult for growers to obtain capital," he says. This, combined with rising energy prices and regulatory uncertainties, has made expansion risky for many growers.
Energy costs, in particular, are a critical concern for CEA operations, which rely heavily on stable energy supplies. Joe notes that fluctuations in energy prices can have a big impact on the profitability of CEA farms. "If the price of fuel jumps 20%, it can be devastating for a CEA operation," he says.
Despite these challenges, Joe is optimistic about the future of CEA in the U.S., particularly as growers adopt more efficient technologies and practices.
The way forward
The CEA industry in the U.S. is at a crossroads. On one hand, there is tremendous potential for growth as consumers demand more locally grown, sustainable produce. On the other hand, the industry must overcome significant hurdles, from high energy costs to the complexity of managing complex growing systems.
For Joe and AmHydro, the key to success lies in providing growers with the tools they need, whether through simple, reliable automation systems or advanced farm management software. "We're not just creating technology to sell," says Joe. "We're solving growers' problems and helping them succeed."
For more information:
AmHydro
Joe Swartz, Vice President
[email protected]
amhydro.com