A New Indoor Farming Giant Takes Root

80 Acres Farms and Soli Organic merge to scale indoor farming, cut costs, and reshape national supply

1 Dec 2025

Two US indoor farming groups, 80 Acres Farms and Soli Organic, have agreed to merge in a move aimed at creating a national network of vertically integrated facilities and addressing long-standing concerns about scale and cost in the sector.

The deal comes as investors seek clearer evidence that controlled-environment agriculture can grow profitably, while retailers look for more consistent supply. The companies said the combined business could approach $200mn in revenue in its first year, signalling rising confidence that consolidation may help the industry stabilise after uneven expansion.

Each group contributes capabilities the other lacked. 80 Acres Farms has invested heavily in automated vertical systems that monitor and manage crop growth. Soli Organic, which has operated for several decades, uses soil-based indoor methods designed to replicate outdoor conditions while reducing weather-related risks. Executives said the merger should improve regional coverage and provide more dependable output for grocers and foodservice customers.

The rationale centres on cost and scale. A larger footprint is expected to lower unit costs, streamline plant operations and strengthen distribution. These efficiencies could help the merged company compete more directly with traditional farms and greenhouse operators, which have expanded rapidly to supply year-round produce.

Challenges remain. High energy prices continue to weigh on indoor agriculture, and integrating two distinct technologies and operating cultures is likely to take time. Analysts following the sector said the transaction reflects a shift towards a smaller number of better-capitalised operators after several start-ups struggled to raise funds or meet production targets.

Market observers will track how the new group manages its facilities and whether it can meet its output and cost goals. Its performance is expected to influence broader investment sentiment in indoor farming and shape how retailers source fresh produce over the coming years.