Key Takeaways
- Chris Higgins, President of Hort Americas, believes that while controlled environment agriculture (CEA) has evolved incrementally, it hasn’t undergone the technological revolution many predicted.
- Market consolidation in North America has limited innovation, with fewer greenhouse operators and increased dominance by Canadian and Mexican growers.
- Higgins questions the sustainability of current AgTech funding models, emphasizing the need for financial products tailored to agriculture’s long-term, low-margin realities.
- A call for pragmatic innovation: farmers want incremental improvements with measurable ROI, not flashy tech that lacks economic grounding.
- The conversation underscores the importance of brand building, supply chain strategy, and technical competence in today’s greenhouse and indoor farming landscape.
Navigating the Future of CEA: A Conversation with Chris Higgins of Hort Americas
As the global AgTech sector faces a post-hype recalibration, Chris Higgins, co-founder of Hort Americas and voice behind Urban Ag News, offers a grounded perspective on where controlled environment agriculture (CEA) stands—and where it’s likely heading. In a candid conversation with me, Chris shares decades of insight into commercial horticulture, funding models, innovation challenges, and the enduring importance of practical solutions.
Chris Higgins’ Work: From Distribution to Technical Partnership
Higgins describes Hort Americas as more than a distributor. “We’re a technical marketing company,” he explains, “which means we don’t just sell products—we support them.” “Unlike distribution giants like Amazon or Uline who focus on warehousing and logistics, Hort Americas focuses on qualifying products, education and technical support and service. Their involvement often begins at product design and ends in technical support, especially in areas like lighting, fertigation systems, and substrate design.
This hands-on approach gives Higgins a unique vantage point to assess both grower needs and vendor blind spots. He contrasts this with trends in the sector where many players underestimate the complexity of supply chains or over-index on marketing rather than engineering sound solutions.
Incremental Gains Over Disruptive Hype
Reflecting on the last two decades in CEA, Higgins offers a sobering assessment. “If you walked into a vine crop greenhouse in 2004 and one in 2025, unless you knew exactly what to look for, they’d appear almost identical,” he says. LEDs, taller structures, and denser plant populations may exist, but they haven’t upended the fundamentals. “Yields are up—maybe 40–50% in some crops—but profitability is still elusive,” he notes.
This gap between productivity and profitability is critical. Higgins emphasizes that while innovation has led to better outputs, it hasn’t significantly improved the economics for most growers. High input costs, volatile markets, and stagnant produce prices continue to challenge return on capital (ROC), especially in U.S. operations.
North America’s Competitive Challenge
One stark point in the discussion was the competitive pressure facing U.S. growers. “Canada and Mexico have scaled aggressively, and the U.S. hasn’t added significant growing area since 2010,” Higgins says. Reasons include higher labor costs, lack of supportive visa programs, and more complicated regulatory frameworks.
Canadian and Mexican firms, meanwhile, benefit from weaker currencies compared to the US dollar, more favorable labor environments, and government support. “Smart Canadian firms grow in CAD, sell in USD, and separate their marketing and growing businesses for financial efficiency,” Higgins explains. These structural advantages make it hard for U.S.-based growers to compete without building strong, differentiated brands—something companies like Gotham Greens and Little Leaf Farms have done well.
The Pitfalls of AgTech Venture Capital
Higgins is blunt in his assessment of private investment capital’s role in the wider AgTech sector. “We don’t have entrepreneurs anymore—we have people chasing funding cycles,” he argues. With most VC funds requiring a 5–7 year return and 10x exit, the model doesn’t align with agriculture’s slow ROI cycles. “In greenhouses, a good year might yield a 6% return on capital,” he says. That math doesn’t work with high interest rates or short-term investor expectations.
Instead, Higgins calls for a more tailored mix of grants and traditional financing. “Before 2010, USDA grants and land-grant universities drove innovation. That foundational research has dried up,” he warns. Without it, innovation risks becoming performative—driven by investor optics rather than agronomic need.
A Cautious Future for AgTech Startups
With consolidation in North America, Higgins questions the viability of startups that rely solely on niche tech like AI in horticulture. “If ten companies control 90% of production, and there are twenty AI startups targeting them, most won’t survive,” he cautions. Add to that the trend of sourcing directly from manufacturers in Asia—bypassing traditional suppliers—and margins become even thinner for service-oriented vendors.
He also underscores the need for better procurement strategies. “It’s not just about price,” he says. “If you’re buying lights or fertigation systems, ask: Will this company be around in five years? What’s the warranty? Do you have legal indemnification?”
Pragmatic Innovation is the Path Forward According To Chris Higgins
While some continue chasing high-tech revolutions, Higgins urges a shift in mindset. “Let’s stop obsessing over sexy tech. Focus on tools that make growers incrementally more efficient,” he says. Equipment that is cost effective to purchase and easy to maintain with local parts, products that allow for consistency and products or companies that have proven quality (measured in consistency over time)—these are areas where tangible ROI still exists. “Historically, we (as an industry) have found innovation in products derived from other industries like coconut fiber from the coconut industry in South East Asia, Rockwool from the insulation industry or AI algorithms adapted from other fields.” Adds Higgins.
Controlled environment agriculture won’t thrive on hype. It will thrive when practical tools, financial realism, and deep agronomic understanding come together. Higgins’ advice? “Build something useful, serve the farmer, and don’t forget—success doesn’t always need to look like a tech IPO.”
