Inside the Research Push Reshaping Vertical Farming

Federal research is providing benchmarks and clarity that could help US vertical farming mature, cut risk, and scale with confidence

19 Dec 2025

Vertical farming in the US is moving into a more measured phase as federal research efforts begin to align more closely with industry strategy, reducing some of the uncertainty that has long surrounded the sector.

The change is being driven in part by the US Department of Agriculture’s Agricultural Research Service, which is expanding its work on controlled environment agriculture. Rather than setting formal rules, the agency is producing research data and performance benchmarks that could shape future industry standards.

A new vertical farming research facility at the University of Toledo has emerged as a focal point for this work. Growers, investors and technology suppliers are closely watching the results, hoping for clearer signals on which systems and practices can deliver reliable returns.

The research agenda is deliberately practical. USDA scientists are focusing on energy efficiency, crop uniformity and pest control in closed systems, areas that have undermined several early commercial ventures. Addressing these challenges at a national research level could reduce both technical and financial risk, making business models easier to evaluate.

The push comes after a difficult period for the industry. Several high-profile operators have restructured or failed in recent years, exposing weaknesses in scale, cost control and operations. Alongside these setbacks, quieter consolidation has taken place, with established groups acquiring assets and intellectual property. Shared benchmarks could support further dealmaking by clarifying performance and risk.

Crop diversity remains a longer-term ambition. Most vertical farms still focus on leafy greens, which offer predictable growth cycles and lower complexity. Federal researchers are now testing fruiting crops and hardier plant varieties, which could support higher-value output and more resilient revenues if successful.

The effects extend beyond farm operators. Equipment manufacturers, lighting companies and automation providers stand to benefit if credible data encourages wider adoption. Retailers and foodservice buyers could gain from greater consistency and reliability of supply.

Energy costs and regional differences continue to pose challenges. Even so, with federal research providing firmer data and the market imposing tighter discipline, vertical farming in the US is beginning to look less speculative and more defined by gradual, structured growth.