Controlled Environment Agriculture

Lessons for the Horticulture & Controlled Environment Agriculture Industry

2024 marked a challenging year for CEA & commercial horticulture sectors, resetting expectations and reverting to earlier industry norms.
Photo by Erwan Hesry on Unsplash

Key Takeaways:

  • 2024 marked a challenging year for the controlled environment agriculture (CEA) and commercial horticulture sectors, resetting expectations and reverting to earlier industry norms.
  • Investor-backed start-ups faced significant setbacks, while a few dominant players now control much of the industry.
  • The focus has shifted back to high-volume, low-margin farming with an emphasis on consolidation rather than expansion.
  • Chris Higgins’ analysis, originally published on Urban Ag News, provides insights into how the industry can move forward and adapt.

What Happened to the Industry in 2024?

The CEA and horticulture sectors faced challenges in 2024, described by Chris Higgins in Urban Ag News as a “crucible moment.” Challenges included:

  • Investor-Backed Companies Failing: Many start-ups disappeared, leaving the industry reliant on a few large players.
  • Stagnant Growth: Total production area remained unchanged, with consolidation taking precedence over expansion.
  • Shift Away from Innovation: Reduced competition and investment in technology have slowed the drive for innovation.

“Going back to the way things were” reflects a return to reliance on traditional companies and fewer technology options, limiting opportunities for smaller, niche operators.


What Can Be Learned From 2024?

1. Consistency Over Excitement

Higgins emphasizes that success in horticulture and agriculture often lies in monotony: “Successful horticulture and agriculture businesses are seldom exciting… Success in our industry is about the ability to excel in monotony.”

Consistency through technology, such as sensors, LED grow lights, and AI tools, ensures daily operations are predictable and efficient. Technology should be viewed as insurance for maintaining stability rather than as a revolutionary force.

2. Investing Like Farmers

The reliance on tech-style investment in CEA proved costly, as many investor-backed companies failed to perform. Higgins suggests returning to the fundamentals:

  • Value in Investments: Farms and manufacturers must focus on technologies that reliably increase yields or reduce operational costs.
  • Shared Responsibility: Farms should avoid bearing the full weight of launching or refining new technologies, only for companies to profit from their expertise.

Who Will Lead the Industry Forward?

Higgins raises critical concerns about leadership in the post-tech-hype era:

  • Many passionate industry professionals have left due to limited opportunities, low pay, and slow progress in achieving transformative change.
  • Large companies, while profitable, often focus solely on operations and avoid public engagement in industry discussions.

Higgins questions: “Who will excite our industry? Who will encourage new talent and convince investors that our industry is still worthy?”


What Do Consumers Value?

Despite setbacks, the industry can rely on several truths:

  • Local and Sustainable Farming Resonates: Consumers consistently show support for local, fresh, and sustainable produce, as evidenced by their purchasing behavior.
  • Stories of Opportunity and Community: Companies that went public succeeded by appealing to ideals of community and sustainability.

What Should the Industry Focus On in 2025?

Higgins concludes that the industry must adapt to current realities while learning from past mistakes:

  • Grounding in Economic Value: Farms must align their operations with the economic realities of their crops.
  • Improved Storytelling: Sharing the practical realities and opportunities of farming can better connect with consumers and stakeholders.
  • Sustainable Growth: Investing in technologies and practices that promote long-term sustainability and profitability remains critical.

Read his entire article here.

Chris Higgins is the Founder and Editor of Urban Ag News. Chris is also the co-Founder of both Hort Americas and the Functional Plant Company. Learn more about Chris Higgins by visiting and connecting with him on LinkedIN or by emailing him at info@urbanagnews.com

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As a dedicated journalist and entrepreneur, I helm iGrow News, a pioneering media platform focused on the evolving landscape of Agriculture Technology. With a deep-seated passion for uncovering the latest developments and trends within the agtech sector, my mission is to deliver insightful, unbiased news and analysis. Through iGrow News, I aim to empower industry professionals, enthusiasts, and the broader public with knowledge and understanding of technological advancements that shape modern agriculture. You can follow me on LinkedIn & Twitter.

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