Hydroponic systems are revolutionizing the agriculture industry with its popularity rising among commercial growers and home growers alike.
The internet is filled with recommendations for making the switch to hydroponic systems. But how much does it really cost?
In this article, we’ll look at some statistics concerning hydroponic system costs and profits.
At this point, you might be wondering, “What is a hydroponic system?”
Hydroponics refers to agricultural systems that feed nutrient-rich water to plants’ roots instead of soil and regular water.
Because plants don’t have to search for nutrients, they can spend more energy growing strong and healthy. Plants can also grow closer together in hydroponic systems because their roots don’t spread.
As a result, hydroponic systems are applauded for producing stronger crops and higher yields in smaller spaces.
Indoor farms utilize hydroponics frequently because soil is not needed and with plenty of artificial lighting available, growing outside isn’t necessary.
Popular indoor farms that frequently use hydroponic systems include vertical farms, container farms, and greenhouses.
The hydroponic farming industry shows no signs of disappearing. The market’s global worth is predicted to grow to $16 billion by 2025.
Here are 15 quick stats about hydroponic system costs and profits from a report on indoor farming by cultivation management platform Artemis.
- Small (less than 10,000 square feet) indoor vertical farms spend an average of $3.45 per square foot on energy, which is 12% of total operating expenses.
- For comparison, large (more than 10,000 square feet) indoor vertical farms spend an average of $8.02 per square foot on energy, which is 25% of total operating expenses.
- Small hydroponic farms spend on average 6% of total operating expenses on seeds, growing mediums, and nutrients.
- Conversely, large hydroponic farms spend an average of 13% of total operating expenses on seeds, growing mediums, and nutrients.
- Hydroponic farm systems generate an average revenue of $21.15 per square foot.
- Vertical farming systems earn an average of $41.16 per square foot, but that number can range anywhere from $2.13 to $100.
- Only 27% of indoor vertical farms make a profit. Meanwhile, half of all container farms are profitable.
- Hydroponic systems, regardless of what structure they’re used in, profit about 60% of the time.
- Leafy greens like lettuce are the most profitable crops to grow in hydroponic systems because they have some of the lowest operation costs. One square foot of lettuce costs about $20 to maintain.
- All hydroponic flower growers reported having profitable farms.
- Only 7% of indoor farms are container farms, probably due to the newness of the technology.
- 75% of farms that used a combination of farming systems were not profitable, meaning it’s best to stick to just one system like hydroponics.
- Hydroponically grown leafy greens and microgreens have the highest profit margins at 40%.
- On average, profitable indoor vertical farms make $14.88 per square foot after operational costs.
- Labor costs are typically the highest operating expense for all indoor farms. One small hydroponic farm spends on average 57% of its budget on labor.
In this article, you learned a little bit about hydroponic farming and 15 stats about hydroponic farm system costs and profits.
If you’re interested in starting your own hydroponic farm, visit our website or call us at 602-753-3469 to learn more about our Pure Greens container farms.