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Controlled Environment Agriculture

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“Like extracting bread from air.”  In 1908, Fritz Haber’s invention of synthesized fertilizer revolutionized the agriculture industry. Through a process of extracting ammonia for fertilizer use from the air, annual global crop yields doubled overnight.  His invention is credited with our ability today to feed billions of people. But new problems are catching up to us.

Here in the United States, we are extremely reliant on international imports to meet our produce needs. Coupled with the challenges of affordability and accessibility of labor, much of the country is also incapable of producing outside for the colder half of the year.  As of 2020, 53% of all the fresh fruit and 32% of all the fresh vegetables consumed in this country are imported.[i]  Increasingly unpredictable weather patterns are only making the challenges of conventional domestic farming more difficult.  Globally, we are still struggling to meet demand for produce.  A 2015 World Health Organization study found that only 36% of the global population has adequate availability of fruits and vegetables to meet minimum nutrition targets.[ii]

Fortunately, a new wave of technology categorized as controlled environment agriculture (CEA) has the potential to revolutionize America’s food production system once again and help alleviate the greater global deficit of high quality, affordable produce.  CEA is proven to increase yields per acre by a magnitude of over 10 times that of conventional agriculture through curation of year-round, ideal conditions and symbiotic micro-ecosystems.[iii]  Conventionally, these facilities use hydroponic, aeroponic and aquaponic systems to grow vegetables without soil.  This technology allows growers to use exponentially less water and fertilizer than conventional field agriculture.  With new innovations in digital monitoring, robotic harvesting, and automated sorting and packaging, the challenges of finding labor are also alleviated.  Equally important, CEA avoids the externalities of environmental degradation, systemic in conventional agriculture.

Through CEA we are able to produce higher quality crops without damaging the ecosystem.  The controlled environment facilitates the elimination of toxic chemicals in exchange for biological pesticides (predators for parasites).  Additionally, as facilities move closer to market in response to demand for local produce and rising shipping prices, breeding programs are able to pivot away from a focus on shelf life (for long-haul shipping) towards flavor, texture, and nutritional value.  Changes in consumer demand for healthier local food is creating growing demand for CEA and ultimately opportunities for investment in the asset class.

Overview

Over the last century, conventional industrial farming has had catastrophic effects on the environment.  Chemical pesticide use has decimated insect pollinator populations.  Monoculture farming, erosion from tilling, herbicides, and fungicides have polluted, depleted, and sterilized our soils.  Excessive fertilizing has polluted our water.  It is not an exaggeration to say that the choices we make today will have cascading effects for centuries.  The United Nations Food and Agriculture Organization estimates that 33% of the world’s soil is moderately to highly degraded through erosion, salinization, compaction, acidification, chemical pollution and nutrient depletion.  These degradations hamper the soils’ ecological functionality affecting its food production capabilities.[iv]  Insect populations have also declined by 75% over the past three decades, largely due to agricultural practices, hampering natural breeding and fruiting processes.[v]   The cataclysmic loss of biodiversity is reaching a breaking point that will not be easy to reverse.  Therefore, it is critical that we reinvent the way in which we produce our food.  Controlled environmental agriculture addresses all of these environmental concerns by creating a closed loop system.

CEA can be classified into three main structures: high tunnels, greenhouses and plant factories. Each has their own benefits and limitations.

  • High Tunnels are the least expensive and most common solution in the market today. At as low as $3 per square foot in construction cost, they require very little capital to get started.  While they are a great improvement over conventional agriculture, they have a short life span, are very susceptible to environmental damages, are less light and heat efficient, and are uninsurable.
  • Greenhouses average $35 per square foot at commercial scale and are the most energy efficient form of CEA.
  • Indoor Plant Factories — typically what people think of when they think of vertical farming — are highly variable in price (generally between $100 and $200 per square foot for new construction), but can essentially be established in any reclaimed building or container.  They are very high in climate control efficiency and yields per acre possible (by growing vertically) but are more limited in what crops they can grow efficiently.  (Some crops demand more light than the LEDs can provide.) Plant factories also require extreme electricity consumption. For example, lettuce crops grown by CEA consume upwards of 350kWh per square foot per year compared to a typical greenhouse’s 25kWh per square foot.

The costliest aspect of running any CEA facility is electricity consumption.  Not accounting for transportation or increased quality’s value proposition, electricity consumption is the biggest barrier today to achieving production cost parity with conventional agriculture.  The key to understanding which structure type is optimal for a given location is through understanding the supplemental lighting efficiency, the cost of electricity, and local conditions.  Consider this: In New York state, at current electricity prices, even if LED technology was perfected to translate 100% of input energy to light, a greenhouse’s use of the sun and supplemental light, instead of 100% artificial lighting, is still more efficient than the benefits of a plant factory’s more insulative qualities.

For this reason, choosing the right asset type to invest in for a given location is critical.  Are you near the Arctic Circle where natural sunlight is very limited for half the year and temperature lows are extreme?  Then a plant factory is likely the correct option.  Are you in a generally mild climate state with high electricity costs?  Then a greenhouse may be right for you.

ESG considerations

CEA is a better impact solution than many other popular alternatives.  It is often carbon negative.  It requires limited use of rare earth metal materials whose mining undermines the true environmental values of many energy-oriented ESGs.  It very poignantly addresses the problems of biodiversity and habitat loss. It decreases agricultural water usage by over 95% and fertilizer usage by 60%.  It dramatically reduces the waste of shipping.  And socially, it has the potential to solve global food crises.

Opportunity

As of today, investment in CEA has reached just over $2 billion across North America and Europe.  The compound annual growth rate for the North American vegetable greenhouse market since 2007 is greater than 20%.  In a $20 billion market, crops from CEA facilities only account for 1.3% of the annual produce consumed in the US.  With total food demand expected to increase between 59% to 98% by 2050, CEA’s growth potential is exponential.[vi]   This does not even account for the opportunity of increased produce demand facilitated by improved accessibility; research shows an increase of up to 32% in produce consumption for each additional supermarket in a census tract.[vii]

The barrier for some, and therefore the opportunity, is that these facilities require high upfront costs.  In addition to the structures themselves, the intricate hydroponic irrigation systems, robotic equipment and sensory equipment can carry a large price tag.  As a plethora of start-up companies race to compete and establish market dominance, they are hungry for capital.  As such, many forego ownership of their facilities, instead focusing on their core expertise and leveraging capital towards opening more facilities.

Several developers and investors are capitalizing on this opportunity in a number of ways.  The most common is a sale-leaseback.  As examples: Equilibrium Capital acquired and leased two greenhouse facilities to indoor agriculture company Revel Green for $11.3 million and plans to finance at least three more greenhouse facilities.  Another firm, Green Acreage provides sale-leaseback and construction financing to companies operating in the cannabis industry.  Green Acreage invested $77.3 million with Acreage Holdings that entered into long-term, triple-net lease agreements with Green Acreage for properties in California.  Other players in the market executing similar strategies include Power REIT, which owns six CEA properties in southern Colorado and Maine with a total of approximately 131,000 square feet of greenhouse and processing space; and Innovative Industrial Properties who focuses on the acquisition, disposition, construction, development and management of CEA facilities across the country.

To better understand the lucrativeness of the opportunity, Innovative Industrial Properties states that their typical absolute net lease terms are 10 to 20 years with base rents at 10% to 16% of total investment and 3% to 4.5% annual rent escalations.  Typical deals range from $5 million to $30 million and carry security deposits and corporate guarantees.  This compares quite favorably to conventional farmland sale-leasebacks that often have 5-year terms and net around 5% of the purchase price as base rent and escalate 7.5% to 12.5% every term.

Other growers have opted for mixed-use facilities where they can rent roof top greenhouse space.  This allows growers to be in deep urban locations and virtually eliminate shipping expenses.  For example, Gotham Greens recently purchased and built a 15,000 square foot greenhouse on a vacant Brooklyn rooftop.  Others have chosen to take the concept directly to the literal market.  BrightFarms has, to date, signed up eight supermarket chains around the country (including three of the largest national chains) to build these rooftop farms for about $2 million per acre.  The facilities are expected generate $1 million to $1.5 million in annual revenue.

International investment continues to be an important funding source for controlled environment agriculture as countries like Saudi Arabia and the UAE look to establish sustainable domestic food systems through the furtherance of the technology.  Many CEA growers have gotten their start through partnerships with sovereign wealth funds.

The opportunity is clear; how real estate investors choose to enter the space is up for debate.  Funded by $82 million from Equilibrium Capital, AppHarvest, a 3-year-old start-up, has purchased 366 acres in eastern Kentucky with the goal of leveraging economies of scale.  With plans to develop a 2.76-million-square-foot greenhouse for $97 million, AppHarvest will be one of the largest greenhouses in the world, supplying much of the Eastern seaboard within one day’s drive.

Conclusion

Although CEA has existed for the past decade, technological development and botanical research have greatly reduced the risk and challenges of the business.  Digital monitoring and control technologies have simplified running a controlled environment agriculture facility.  Concurrently, consumer demand for high quality organics has risen dramatically, creating a bigger market.

As we stand today, the climate crisis has reached boiling point and habitat degradation has pushed biodiversity to the brink.  CEA stands as a profitable, sustainable, lower-risk alternative to conventional agriculture, whose biggest challenge is simply the upfront costs of developing the facilities.

Citations


[i] Center for Food Safety and Applied Nutrition. “FDA Strategy for the Safety of Imported Food.” U.S. Food and Drug Administration, FDA, www.fda.gov/food/importing-food-products-united-states/fda-strategy-safety-imported-food.

[ii] FAO, IFAD, UNICEF, WFP and WHO, The State of Food Security and Nutrition in the World 2020: Transforming food systems for affordable healthy diets, 2020. https://www.unicef.org/reports/state-of-food-security-and-nutrition-2020

[iii] GL Barbosa, FD Gadelha, N Kublik, et al., Comparison of Land, Water, and Energy Requirements of Lettuce Grown Using Hydroponic vs. Conventional Agricultural Methods, International Journal of Environmental Research and Public Health, 2015, 12(6), 6879-6891. https://doi.org/10.3390/ijerph120606879

[iv] FAO, Polluting Our Soils Is Polluting Our Future, May 2, 2018. www.fao.org/fao-stories/article/en/c/1126974/.

[v] Euan McKirdy, New Study Suggests Insect Populations Have Declined by 75% over 3 Decades, CNN, October 20, 2017. www.cnn.com/2017/10/19/europe/insect-decline-germany/index.html.

[vi] Maarten Elferink and Florian Schierhorn, Global Demand for Food Is Rising. Can We Meet It?, Harvard Business Review, April 26, 2019. hbr.org/2016/04/global-demand-for-food-is-rising-can-we-meet-it.

[vii] “Growing Beyond the Hype: Controlled Environment Agriculture.” S2G Ventures, www.s2gventures.com/reports/growing-beyond-the-hype%3A–controlled-environment-agriculture.


Date: Jun 3, 2021
AUTHOR: tbaumdesign

Agroforestry

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Introduction:

Agroforestry is an agricultural methodology that optimizes production by exploiting the benefits of interspecies interactions. By deliberately combining trees, shrubs, perennials, annuals, or livestock, a grower can enhance their farm economically, ecologically, and environmentally. In juxtaposition to popular monocultural farming practices, agroforestry reestablishes the complexity of time, place, and biodiversity that plants experience in the wild. From a sustainability perspective, it can serve as a bridge between natural resource management and agriculture, in a world that is in dire need of a better relationship between the two.

Agroforestry can be divided into several categories: Riparian Vegetative Buffer Strips, Intercropping, Sivopastoral, Windbreaks, and Forest Farming. Each represents a different circumstance in which agroforestry can provide benefit, ultimately with the same symbiosis methods at their core.

Riparian Vegetative Buffer Strip Systems are the establishment of agroforestry plantings along stream and riverbanks to protect aquatic habitats and reduce nonpoint source pollution in waterways.

Intercropping Systems are the planting of widely spaced trees with conventional crop rows in between allowing for diversified farm income, the abatement of soil erosion, mitigation of nutrient loading, and the protection of watersheds.

Silvopastoral Systems are the combination of trees and livestock as a means of maximizing the land for economic, wildlife habitat, fire protection, and forest management benefits.

Windbreak Systems are the simple and more commonly seen practices of today. Windbreaks are plantings around the perimeter of a field used to protect and enhance the production of crops and animals while creating environmentally more stable microclimates.

Forest Farming is the development of microenvironments resembling natural forest stands that look to mimic nature throughout a farm. Forest Farming develops suitable environments for growing specialty crops within its shaded settings.

Benefits:

Agroforestry offers a wide variety of both localized and macro benefits for the farm and the greater landscape. On a macro level, Agroforestry practices can increase productivity during successional changes, decrease weed competition, increase internal regulation, increase biological regulation of insect pest, increase solar radiation usage efficiency, increase soil organic matter, increase biodiversity, decrease agriculturally derived contaminants in riparian zones, decrease wind and water erosion, increase the uptake and fixation of carbon dioxide from the atmosphere, and increase the retention of nutrients in soils.

Wind:

For the farmer, Agroforestry offers a variety of crop production benefits. Foremost are the benefits of wind damage protection. The creation of woody corridors traps windborne particles and slows windspeeds across sites. Small seeded, shallow sown, and newly emergent crops are particularly susceptible to wind and sandblast damage. Additionally, orchard fruit crops are often compromised from wind as well – which can cause the desiccation of petals and pollen loss as well as fruit drop, bruising, and scaring. Further, research indicates that livestock also benefit from the wind protection, with studies indicating that feed needs are decreased by up to 20% by offsetting the cold wind temperatures. Similar studies indicate benefits to livestock such as decreased newborn losses, increased cattle weight gain, and increased milk production as well.

Erosion:

Agroforestry offers erosion mitigation benefits as well in the form of wind and water erosion protection. It is estimated that conventional monocultural farming practices can result in the loss of five tons of soil per year per acre. A problem that agroforestry practices greatly eliminate. By retaining soil organic matter, farmers can greatly reduce or even eliminate their need for commercial fertilizer.

Nutrients:

When using commercial fertilizers, Agroforestry practices can greatly resolve the problems of nutrient runoff. Riparian Vegetative Buffer Strips were found to greatly decrease negative externalities from farms, in particular. Forested Vegetative Buffer Strips 90 to 150 feet wide were found to reduce ground water nitrogen content by 68% to 100% and surface water runoff nitrogen by 78% to 98%. Further, Forested Vegetative Buffer Strips are able to reduce phosphorous concentrations in surface water by 50% to 85%. This runoff, when allowed to reach water bodies can have devastating ecological effects, causing life choking algae blooms in its extreme circumstances. Further, the preservation of soil health improves the quantity and quality of the soil microbiome. These resident bacterial and fungi are critical for making nutrients available to plants

Water:

Agroforestry offers other water benefits as well. Locally, Agroforestry practices can increase soil porosity, reduce runoff loss, and increase soil coverage, which leads to higher water infiltration and retention in the soils. This is of particular benefit in drier climates and drought conditions for reducing soil moisture stress on crops. Further, through a process called hydraulic lift, trees with deep roots redistribute deep soil water supplies to higher stratas, where other crop root zones can have access during drought.

Agroforestry practices reduce sedimentation in reservoirs as well. Conventional farming results in unnaturally high sedimentation. By mitigating this, reservoir life spans can be extended at a national savings of $200 million.

Winter:

Additionally, woody corridors have the added benefit, in winter, of increasing water availability through snow capture. This snow capture is also important as insulation preventing winter kill of more sensitive perennial crops.

Climate:

Agroforestry practices overall act as valuable climate modulators. These forested settings better moderate against extreme temperature fluctuations that can be very destructive to crops. Agroforestry farms have higher humidity, soil moisture, nighttime CO2 levels, and lower nighttime air temperatures compared to their conventional monoculture counterparts. These regulatory effects were found to increase crop productivity 10% to 25% in dry climates.

Pests:

It is estimated that 18% of all crop loss is the world is due to insect pests. As global warming progresses, this problem is likely only to get worse. Agroforestry practices can impact the pest mitigation aspects of farming in a variety of ways. Through the creation of woody habitat for birds and bats, these spaces can increase the presence of the predators that prey on insect pest in the fields. Though this won’t eliminate pests in their entirety, it helps to keep populations under control.

Additionally, these wooded spaces provide the habitat needed for beneficial insects as well such as arthropod predators and parasitoids who further suppress pest insect populations. These spaces offer stable habitats for reproduction, overwintering, and refuge free from the from perturbations of conventional farming practices. Additionally, reducing wind through farms can also significantly help beneficial insects find and consuming pests. It is estimated that the wind barriers that agroforestry practices provide can improve crop pest reduction by beneficial insects up to 40%. Lastly, Agroforestry practices reduce visibility for pests, decreasing the chances of epidemic by making pests that target a single species less prolific. Overall, these predatory species serve a critical ecological role in the farm. It is estimated that these insects provide ecosystem services worth $4.5 billion per year.

Habitat:

Agroforestry practices can play a critical role in the protection and creation of critically endangered habitats for both aquatic and terrestrial species. In sensitive aquatic areas, the forested zones shade and stabilize stream banks. This reduces erosion while improving aquatic insect habitat, raising dissolved oxygen levels, reducing denitrification, reducing evaporation, and ultimately raising fish population levels. Further, these buffers play an important role in bioremediation, breaking down and capturing chemicals that drift from the farmland, decreasing their ecological destruction effects.

Pollination:

Over 30% of the crops we cultivate for food rely on insect pollinators. These pollinators largely come as wild native bees and European honeybees. Over the last century, due largely to the chemical and habitat destruction practices of industrial farming, populations of these bees have been significantly reduced. The practices involved in conventional monocultural farms are largely incompatible with the needs of many of the 4000 species of North American bees.

Approximately 30% of our native bees are wood nesters that require trees and shrubs for nesting. About 70% create nests underground requiring undisturbed soil away from the tilling of conventional farm practices. Agroforestry is a poignant way to address the habitat needs of both species. Bumble bees for instance, were found to be twice the density in wooded habitats as compared to grassland habitats. By bringing the habitats of these species closer to the crops by better interspersing woodland, fields can experience greater pollination levels and ultimately better crop production.

The many pest reduction benefits of Agroforestry decrease the need for chemical pesticides, commonly used in conventional farming. These chemicals wreak havoc on bees through direct contact and inadvertent spray drift. With the ecological service value of these bees over $3 billion, farming faces a critical need for solutions like agroforestry that can help bring the bee species back from the brink.

Air:

Agroforestry offers significant values in regard to air quality improvement as well. In addition to reducing chemical spray drifts up to 90% through woody buffers, Agroforestry farms serve a valuable role as greenhouse gas reducers, smog reducers, particulate catchers, and odor reducers in livestock areas where this can be a major concern.

Human:

Beyond the role that Agroforestry plays productively, it also can play a valuable role for the farmer themselves and the local community. First, from a biophilia perspective, agroforestry natural mimicry creates aesthetically pleasing spaces that are psychologically inviting for people. From a real estate perspective, greenspaces are among the top 5 things people seek when choosing a place to live. Greenspaces are proven to raise property values up to 32%. This land value is not shared by spaces juxtaposed to monoculture farms. These agroforestry spaces can play a valuable social role as leisure spaces for walkers, joggers, birdwatchers, and wildlife spectators – improving the quality of life. They also can serve as grounds for hunters as a secondary value.

From a practical perspective, agroforestry systems reduce the need for building snow fences, saving the farmer capital costs. Additionally, the microclimate affects reduce utility costs for dwelling units on site. Lastly, by better holding water on site, overall usage can be decreased. These effects cumulatively, ultimately, lower overall farm expenses.

On a broader scale, agroforestry serves as a means of increasing domestic food security – enabling the production of diverse products locally. Further, research suggests that, (if utilized at scale) agroforestry systems could help mitigate climate change through significant carbon sequestration. And lastly, increased forest covering in watersheds can reduce the total amount of runoff from storms and mitigate flooding risks during peak stormflows. In these many ways, agroforestry offers environmental services values that are difficult to quantify.

Value Proposition:

Though many of the different agroforestry benefits are externalities outside the direct capture of the farmer, many are still measurable as the relate to the economics of the farm. From the broad perspective the values vary greatly as the mixture and effectiveness of agroforestry can vary greatly between different crops’ symbiosis and settings. However, as a mean, agroforestry has been proven to increase overall yields on the average between 6% and 56% – overall, increasing IRR to the farmer 4% to 11%.

However, the landscape of farming is changing. Agroforestry offers several other valuable properties as well. In an increasing labor challenged industry, agroforestry offers flexibility to the farmer that monocropping does not, as all crops do not need harvesting in mass at one time. Further, Agroforestry reduces risk by offering multiple harvest timings and products for sale rather than risking a year on a single yield. This also allows many fixed costs to be spread across a variety of products rather than laying idle for long periods of time.

From a startup perspective, Agroforestry offers a means of creating revenue sooner, rather than waiting years for the first crop as is seen in a conventional orchard. Additionally, it allows for the phasing out of equipment as it depreciates and succession to other crops becomes necessary.

Lastly, from a land scarcity perspective, agroforestry offers better overall utilization of land. This is particularly valuable for islands, for example, that are running up against a delicate balance of natural resource conservation and food security.

Challenges:

Agroforestry faces a number of unique challenges to wide adoption still today. Although there is becoming an ever-vaster databank of resource for learning best practices for agroforestry, there still limited research conducted in the field. Overall, there is little graduate study emphasizing agroforestry. This stems from overall limited employment opportunities in the field and as such limited funding. Given the breadth of the field and its variability across locales, there is a need for more localized testing of the practices.

Public perception holds agroforestry back from wide adoption as well. Generally, people believe that high establishment costs and high management expertise is needed. Many seem to believe that the economic gain would be lower than traditional farming. Others are disinterested in adopting systems whose rotational length may exceed the landowner’s life expectancy. Much of this is misconception only exacerbated by the public sectors disinvolvement, assuming that landowners would be unwilling to follow the land management prescriptions necessary for developing and maintaining agroforestry systems properly.

Public policy overall has a way to go in catching up with the needs of agroforestry becoming the norm. Currently some states offer extensions to the conservation reserve program to compensate farmers for the differences in payments they would have received from non-agroforestry practices. This is neither across the board nor a full compensation for the externalities that agroforestry provides. Currently, agroforesters are excluded from certain programs that are based on tree planting density. Considerations are being made though regarding valuing agroforestry for its carbon sequestration value. The challenge has largely been from organized commodity groups who feel that subsidizing producers entering the market through federally funded programs would give them and “unfair advantage”.

Lastly, agroforestry faces physical challenges as well. Overall, scale and time are necessary for realizing many of the benefits of agroforestry. Additionally, there can be added expenses to undergoing the practice. Sivopastoral systems, for instance, add additional costs for fencing and risk of tree damage from the livestock. Further, in some circumstances, agroforestry practices have been found to exacerbate pest problems by protecting insect pests with alternative hosts, allowing them to rebuild populations and reinvade crop areas the next season.

Conclusion:

In 1935, the Dustbowl showed us the consequences of not having any agroforestry practices across the Midwest. In its wake, the Prairie States Forestry Program planted more than 200 million trees as shelterbelts, to reclaim the land ravaged by the Dust Bowl. In many ways, agroforestry is a return to the old way of farming of ancient times – but this time with more information.

Agroforestry offers a solution to many of traditional farming’s biggest issues today. It can address the climate crisis, the biodiversity crisis, soil depletion, air and water quality, and the struggles of smaller scale farms trying to stay in business. The evidence posits that agroforestry can sustainably increase production per unit of land area while enhancing economic, social, and environmental services. While demand for local and organic specialty crops continues to grow exponentially to support the market, the time for shift has never been better or more necessary. What we need now is a policy environment that recognizes the valuable macro externalities of agroforestry better and compensates farmers for the transition in a manner more appropriate to its true value.  

Appendix:

  1. Johnson, T. (1995). Agroforestry. [Washington, D.C.]: U.S. Dept. of Agriculture, Soil Conservation Service. Retrieved from http://hdl.handle.net/2027/coo.31924094705195
  • Patel-Weynand, T., Bentrup, G., & Schoeneberger, M. M. (2017). Agroforestry: enhancing resiliency in U.S. agricultural landscapes under changing conditions. Washington, DC: U.S. Department of Agriculture, Forest Service. Retrieved from https://purl.fdlp.gov/GPO/gpo90991
  • National Agroforestry Center. (2008). Agroforestry: working trees for agriculture. (Sixth edition, 2008.). Lincoln, NE: National Agroforestry Center, USDA. Retrieved from https://purl.fdlp.gov/GPO/FDLP639
  • Doddabasawa, Chittapur, B. M., & Mahadeva Murthy, M. (2020). Economics and energy potential of traditional agroforestry systems under contrasting ecosystems in semi arid tropics. Agroforestry Systems: An International Journal Incorporating Agroforestry Forum, 94(6), 2237. https://doi-org.proxy.library.cornell.edu/10.1007/s10457-020-00545-y
  • Montagnini, F., Francesconi, W., & Rossi, E. (2011). Agroforestry as a tool for landscape restoration. New York: Nova Science Publishers.

Date: Jun 2, 2021
AUTHOR: tbaumdesign

Placing a Value on Design

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Design fundamentally has two elements – Form and Function. Function is the tangible aspects. What is it? What can I do with it? It’s easy to compare apples to oranges, see what is demanded across a population, and then ultimately put a price tag on what people are willing to pay for it. A deck for a deck, a shade structure for a shade structure, etc… Form, however, is much more intangible. It’s a subjective feeling about the creation. Is it beautiful? How do I feel in it?

When a Landscape Designer puts a price on their work, they are putting a valuation on their own time and projecting that out as a fixed bid estimate of their total expected time expenditure. But how much is the product created actually worth? How do we account for the value of the form, not just the function? For that, we look to secondhand sales to find out.
In 1999, a study conducted by Clemson University looked to quantify the effect of different quality landscaping improvements on the ultimate home sale price. They studied the effect that different properties in a wide variety of locations and conditions sold for using landscape quality as the variable. What they found was that with all other variables accounted for, an excellently landscaped property could fetch up to 14 to 17% more at sale then one with landscaping rated as poor. In Denver today, that’s equivalent to $70,000 more for the average home!

Turn those drive-bys into walk-throughs, get more bids, and sell for more.

There is a cost to the investment of labor and materials to make the jump from poor to excellent, but the benefits will still far outweigh the costs. Rarely do our residential landscaping projects in Denver cost even 10% of the value of the home. Numbers crunched, that’s up to a $29,000 instant profit with the sale of your average Denver home.

When looking at your outdoor spaces don’t be afraid of the price tag. The money is being invested as equity into the home with a buffer of profit to dream big and create a space you will love. The best way to maximize the value of landscape designing is to plan ahead. Moving into a new place is the perfect time to start planning your outdoor spaces. A more established landscape is worth more to the property and you get to thoroughly enjoy it while you live there.

Outdoor lighting, good yard maintenance, and well placed trees will always pay for themselves in the end. Designing for varietal leisure spaces, noise reduction, visual barriers, creating a cohesive aesthetic with the architecture, crafting a clean outdoor look that makes the house feel cared for – Those are some of the more subtle design challenges that people will subconsciously pay top dollar for.

None of this, however, accounts for the added benefit energy and water savings that a sustainably designed plan provides for the home. Not only do you create a curb appeal that makes you proud of where you live and an outdoor space that makes your home feel bigger and more versatile, but everyday utility and maintenance costs can be drastically reduced ultimately paying for the improvements themselves.

Tannenbaum Design Group for these reasons is proud to announce a new collaboration with GreenSpot Real Estate. We are now offering FREE customized designs with any Buyers or Sellers Agency Listing agreement with the purchase or sale of any home. We want to reinvent the way the home sale industry works by adding more value back into your homes than is paid in the commission. As a seller you profit! As a buyer you get to buy a house you like and turn it into a home you love, for free! What is your sister’s college roommate’s broker friend giving you for the cost of that commission? If you do the math, it makes no sense to go anywhere else.


Date: Jul 23, 2018
AUTHOR: tbaumdesign
Comments: 1

The Green Roof Initiative

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Obviously as designers of green roofs, we are very happy about  the Green Roof Initiative being passed this week. But more so, the environmental and energy efficiency benefits of green roofs make for a no-brainer. For those who do not know, the Green Roof Initiative (Ordinance 300) mandates, “every building, building addition, and any roof replacement of a building, with a gross floor area of 25,000 square feet or greater, constructed after January 1, 2018 shall include a green roof or combination of green roof and solar energy collection.” Specifically, the total coverage of rooftop requirements increases 10 percent every 50,000 square feet, eventually capping at buildings of 200,000 square feet or more with 60 percent of the roof requiring coverage by gardens or solar panels.

So let’s discuss the benefits of green roofs, first, from an environmental perspective. Green roofs provide air quality benefits to the city by filtering particulates from the air in the same manner all green space does. They help to mitigate the effects of urbanization on water quality, often dramatically, by filtering, absorbing and retaining rainfall. And ultimately, from a nonhuman-centric mindset, the green roofs restore biodiversity to the urban environment by returning green space habitats to the local ecosystem.

So now let’s discuss the benefits from an economic perspective. Denver’s status as of a 2014 study by Climate Central, found the city has the third-greatest urban heat island effect of any American city. An effect partially produced by the radiating of heat off rooftops and pavements. The only American cities that ranked higher are Las Vegas, Nevada and Albuquerque, New Mexico. (The urban heat island effect is the raising of the temperature in the urban environment in comparison to the surrounding areas). In the summers, by implementing green roofs on the macro level, we can significantly reduce the overall heat index and our energy consumption used to cool buildings. (Urban heat islands are also affected by the reflection of the sun’s rays off the sides of buildings, particularly glass building. The effect can be so intense that it can actually scorch trees and grass. A problem ultimately, solvable with more use of green walls, but we’ll leave that initiative for another day, as we wait for green wall innovation to catch up and make more economic sense.)

On the micro, per building level, green roofs also work to insulate structures by reducing the amount of heat entering a structure in the summers and holding on to artificial heat from the inside in the winters. In addition, the green roof protects the top of the structure from hail damage and wear from the intensity of the sun, ultimately reducing repair and maintenance costs of the roof when compared to a standard roof. From and energy perspective alone, green roof have been found to provide a return on investment within five or six years in many cases.

And finally, from a social and psychological level, green roofs and green spaces in general, provide a mental health benefit called Biophillia. Those who get to enjoy the new view of nature instead of the concrete jungle have been shown to experience therapeutic benefits.

A green roof has a vast range of functional opportunity as well though. Green roofs can be made into community gardens, social spaces, recreational areas, and even meeting spaces in an outdoor setting. The initiative doesn’t have to be looked at solely as a dysfunctional space at higher cost but rather an opportunity, with the required addition of the structural integrity, to turn the roof into a usable space.

Unlike many environmental initiatives, this benefit doesn’t come from taxes at all, because the cost is up to the building owner who in the end is saved money by energy savings. The only people who don’t benefit from this proposal are large scale developers who simply want to build as much, as quickly, and as cheaply as possible to sell. That’s a mindset that hardly represents the best interest of the people of Denver, the ultimate consumer.


Date: Nov 14, 2017
AUTHOR: tbaumdesign
Comments: 1

Houston Strong, a New Detroit, and the Future of Bayou City’s Urban Planning.

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In late 1950’s, with the decline of the American automobile giants, began the economic and population decline of Detroit. Between 2000 and 2010 alone, forty-eight percent of the manufacturing jobs in the state of Michigan were lost. For reference, in 1950, there were about 296,000 manufacturing jobs in Detroit. Today, there are less than 27,000 manufacturing jobs. In 1950, the city of Detroit was counted as a population of 1.8 million making it the 5th largest city in America. Today, almost 70 years later, there are 700,000 residents.

Detroit was the first modern major American city to experience such a massive exodus out of the city. As people left, property values fell apart and the city became broke. All over the inner city, properties were abandoned and fell into neglected decay; the dense urban areas became a wasteland of dangerous crumbling infrastructure. In its wake, as these structures were demolished, a city with vast plots of uninhabited space was left.

All this may sound tragic, but on the other side of the coin was an opportunity – an opportunity for a large major American metropolis to reinvent itself from the industrial era urban design of American cities into a new post modern evolution. An opportunity for a city to learn from all of the mistakes of the last centuries and implement all the environmental, technological, and sociological understandings we have today on a redesigned American city.

As we are beginning to see with the resurgence of the Detroit economy, the city is using the opportunity to embrace sustainability and environmentalism in its movement towards a better future. From cars to bicycles and public transportation, from imported agriculture to vast communal urban farms, from infinite planes of impermeable concrete to a network of green spaces – the infrastructure revolution continues.

I mention all this today, because in the wake of the most catastrophic flooding in American history, Houston now has an opportunity. Anyone can see that a city that floods every single year from non tropical storms was not going to make it through a category 4 hurricane unscathed. For decades in the field, we have known and discussed the recklessness of building in the flood plains, in any city, and the macro effects of covering a virtually pancake flat city, that covers a whopping 627 square miles, in 40%  impervious surface. Houston was once prairie lands with large plots of open space which slowed and absorbed storm water runoffs. That is the profile of the city for which the city’s archaic bayou drainage infrastructure was actually prepared for. Not what it has become.

The choices of the past are what they are. Now is the time to reevaluate what needs to be done or this will happen again.  We have vast plots of urban land that have been simultaneously destroyed and will likely be rebuilt, but the truth is that majorities of them should not be. That is not to say Harvey, a one in 500 years storm should be the indicator, but rather use the last 10+ years of regular flooding to indicate the unsustainable developments. Areas that have been flooding every other year should not be rebuilt and should become public green space – an environmentally healing, psychologically beneficial, and economically stimulating public good. There needs to be an understanding that this will get worse before it gets better because it will take years to update the drainage infrastructure needed to get Houston through the next storms.

Houston, throughout the storm, brought pride to people across the world as they watched acts of heroism and humanity. Today, Houston can make the choice to be the pride of the nation with a city that uses a disaster to reinvent itself into a new sustainable city. The opportunity to learn from our fellow Michiganders is there, it’s our choice to take it.


Date: Sep 4, 2017
AUTHOR: tbaumdesign
Comments: 2

Iberia Study – Xeriscaping and Permaculture

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Xeriscaping

The term “xeriscaping” defines the process of designing landscapes for water-efficiency. The term was first coined in Colorado in 1981, but has existed throughout cultures for many centuries. Xeriscaping is achieved through the practice of designing with 5 basic principles:

  • Minimization of high water demanding ground covers, i.e. lawn areas (using turf only when it provides function)
  • Efficient irrigation techniques
  • Protection and improvement of planting soils
  • Suitable plant species selection for the specific environment (natives and naturalized species)
  • Continual maintenance to reduce water requirements over time

Although the term was first used here, the concept has been implemented throughout the world. Historically Iberians, (i.e. modern day Spain and Portugal) before modern irrigation techniques were very innovative in this field, cultivating fame for their agricultural innovations in dry climates. (As a nifty side fact, this agricultural skill set is the reason the small nation of Bermuda has such vibrant Portuguese subculture today, as they immigrated thousands of Portuguese farmers during the American revolution because they feared an American embargo and needed help becoming agricultural self sufficient.)

Upon arriving in these countries it is clear that there is an embracement of the demands of the environment. There is an acceptance of the existing climate and an adaptation to the natural environment is made rather than fighting the elements at high expense. From this acceptance arises a unique aesthetic that we here can learn from as we move towards sustainable design as a country. A way of rethinking not just our landscape choices but our use of art, hardscape and architecture to match the existing environment rather than battling the natural setting.

Permaculture

Permaculture, as it applies to the landscape, is an attempt to mimic symbiotic relationships found in nature in the practice of agriculture, in order to create self-sufficiency and sustainability. America remains one of the highest consumers of energy, largest producers of waste, and most excessive consumers of artificial fertilizers.

In Iberia, as the colonial empires fell apart, the Spanish, and more extremely the Portuguese, became very poor. Much like many countries that have gone through financial hardships, land became abandoned throughout the major cities, currencies fell apart, and families began to need a means to lower expenses. Through this combination of events, these cultures reverted to the historic practice of self sufficiency in micro farms. All throughout these cities today you will find brilliant little farms using found materials to grow crops in abandoned lots. Because these are personal farms, unlike American mega farms, they lack major irrigation, industrial fertilizers, and monoculture production. Instead, they mix crops and use the symbiotic relationships of the plants to sustain each other, have crop productions all season long, and keep water requirements lower.

In the United States, this has already become a major planning innovation in Detroit as it begins to recover from economic hardship. Entire city blocks have begun to transform into functioning urban farms. Even in areas that may not have the economic hardships, we can still see the value in the environmental sustainability these practices hold.

By reducing the need to transport crops over great distances we can reduce the environmental destruction of the energy usage, but it is more than that. When designed with aesthetic intention, we can turn what would be a landscape that just consumes time, money and water into beautiful, consumable resources that actually save you the owner money at the grocery store.


Date: Aug 25, 2017
AUTHOR: tbaumdesign
Comments: 1

Best of Houzz 2017!

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“We’re so pleased to award Best of Houzz 2017 to this incredible group of talented and customer-focused professionals,” said Liza Hausman, vice president of Industry Marketing for Houzz. “Each of these businesses was singled out for recognition by our community of homeowners and design enthusiasts for helping to turn their home improvement dreams into reality.”

Thanks for being a part of it!


Date: Jan 20, 2017
AUTHOR: tbaumdesign

Publishing in the Houston Chronicle!

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Updated historic home in Southampton sold in first week on the market! The project was published in the Houston Chronicle.

“Updated hone in Southhampton Place

Studio with full bath added above garage.

This four bedroom traditional home on a professionally landscaped lot in Houston’s Southhampton Place Subdivision was built in 1930 and has been extensively remodeled through the years…

Lush landscaping, stone walkways and outdoor seating areas give the lot a park-like feel.

Agent: Sotheby’s International Realty

– Megan Mattingly-Arthur


Date: Oct 28, 2016
AUTHOR: tbaumdesign

Scandinavia Study – Cold Hardy Vegetation and Contemporary Minimalism

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Invasives and Natives

We as landscape designers look to enhance the local outdoor setting through the use of natural materials. Often times there are many native species and materials that can accomplish the aesthetic we are searching for. When designing for the quintessential Colorado architectural styles of American Bungalow or Mountain Rustic, the use of natives to match can be ideal. Local stones and local species can round off the great Colorado archetypes that we are chasing. Many times in the era we live in though, architectural styles are imported. In these circumstances, the landscape pallet of locals might not be the complete pallet desired. In such circumstances it is important to consider import choices carefully.

Historically, very little attention was paid to invasive species. To date, across the western world, we are battling the mistakes of the past. Because of the lack of attention when importing horticulture, we now have pests such as the nightmarish fire ants, the emerald ash borer that devastates out forests, and the Asian tiger mosquito that many of us know well. Many times however, it is the plants themselves and the weeds hitchhiking in the soil that can be the most destructive to the ecosystem. One of the best examples of this is the Kudzu vine. A vine introduced in the late 1800s, Kudzu was hailed as a great planting solution for erosion control. Now having made its way into the wild, the vine can grow up to a foot a day, completely overtaking even entire trees and shading them to death. Now kudzu, like many other species, are a constant battle wreaking havoc across the continent.

With that said, there is nothing inherently evil about the use of foreign vegetation in the landscape. It is only when the species used have the capacity to spread into the wild, and out-compete the native vegetation, that it becomes an issue. So, how do we as landscape architects in a challenging horticulture climate like Colorado, with limited off season color in the native pallet, responsibly preserve the ecosystem while creating beautiful outdoor spaces? For that, we have a number of considerations.

  • One option is to simply use foreign species that will not survive our winters as highlights within the landscape for seasonal “pop”. In this circumstance we preserve the ecosystem by using annuals that don’t have the capacity to become invasive.
  • A second option is the use of sterile cultivated hybrids and single gendered plants so that the species do not have the capacity to reproduce and spread into the wild. In this way we can scour foreign locations for incredible plant species and use them without ill effects.
  • Another consideration is the use of regional plants from close climates cultivated locally. Over time these species from nearby can acclimate and begin to withstand our winters. In this way we are simply expanding the range of semi native species and pushing the envelope of their domain slightly. An acceleration of a natural evolution if you will.
  • Lastly, we can consider the use of species that can survive in the urban environment, where we enhance the native soils and irrigate, but would be unable to survive outside of that micro-ecosystem. With the use of sustainable systems such as rain water collection and home composting, there can be no real environmentally damaging effects.

With all this in mind, in the end, it is important to remember our role as environmental stewards. When the opportunity to propagate endangered local species back into the environment presents itself, we should take it. Natives aren’t to be forgotten or ignored as they often have become in recent years, but that doesn’t mean that a landscape that that uses foreign species as highlights is necessarily failing in our role in creating a sustainable future.

 

 

Scandinavia

In design, we don’t always have to reinvent the wheel. There is a big world of ideas out there to learn and develop off of. Colorado may not have a great history of landscape architecture but there are areas of the world with similar environments that do, and we can learn from them. One of those, for us here, is Scandinavia. (i.e. Norway, Sweden, Finland and Denmark.) Humanity has been practicing landscape design for many centuries in these countries. The way they design for the harshness of winter, to avoid bare bleak landscapes is inspiring. They design for it, instead of suffering through it.

As contemporary architecture progressively takes its foothold here too, we can again look to our Scandinavian friends for inspiration. As major arbiters of this post modern era of architecture, they push the envelope of landscape design as well. How do you extend the contemporary aesthetic from the structures themselves into the spaces between? There are few cultures more progressive than the Scandinavians in this regard.

At the end of the day though, the best teacher of landscape design is nature itself. To go into the natural environment and recreate the juxtapositions and symbiosis there, produces some of the best results. Few places on earth will take your breath away like the fjords and archipelagos of sparsely inhabited and untainted far northern Europe. A reminder of how nature looked before people and what we can do to bring it back.


Date: Aug 12, 2016
AUTHOR: tbaumdesign

Central Europe Study – Sustainable Communities, Recycling, & Reclamation

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Post World Wars Central Europe might not have a lot a lot of positives you can say were taken away from the devastation of war. However, when everything is bombed to rubble you certainly have a clean slate to start over from when it comes to design. Many cities like Frankfurt, Bonn, and Berlin that suffered the highest amount of city destruction took the opportunity to rise from the literal ashes with a new era of urban design and architecture.

In Frankfurt, for instance, over 50% of the infrastructure was destroyed by 1945. Today, 52 percent of the city area is green space, consisting of parks, woodland, farmland, orchard meadows, grassland, allotments and hobby gardens, cemeteries, roadside grass verges and bodies of water. And as of 2019, Frankfurt has been ranked the most sustainable in the world.

Sustainable communities can arise naturally over time as well, through the reclamation and re-purposing of infrastructure. When a large industrial site or landfill, that used to be on the outskirts of town, finds itself decommissioned and eventually absorbed into the growing city, it can present a multitude of challenges (i.e. contaminated soils, eye sores, wasted space, etc). Europe’s ancient cities can serve as great examples of how to cope and even benefit from these challenges.

For industrial sites, Landschaftspark in Duisburg, Germany is a patent example of how a derelict site can be reclaimed without disturbing the polluted soils through deconstruction and wasting materials and energy in mass deconstruction. Through this they achieve the addition benefit of preserving a bit of history. Landschaftspark was transformed from a disused old industrial ironworks into facilities with multiple uses into a one of a kind park space. The huge buildings of the former ironworks have been modified to provide patrons with a multitude of new functions such as alpine climbing gardens created in ore storage bunkers and a viewing tower made from a decommissioned blast furnace.  Landschaftspark represents how an area can celebrate its industrial past by integrating vegetation and industry, promoting sustainable development and maintaining the spirit of the site without morning it as an eyesore.

Metabolon in Bickenbach, Germany serves as an interesting example of landfill reuse. Metabolon is a multi-purpose site built upon a decommissioned landfill. The site today takes advantage of the artificial topography to serve as serves as a lookout point, bike track, public park, playground, and research center and more. Converting waste to energy is the most significant goal in the research center. What was a disaster for the town has become an attraction and public benefit.

The benefits of recycling and reclaiming are shared among citizens, tourists, developers, customers, and the environment alike. Firstly, an industrial reclamation project produces ecological benefits to the environment and its inhabitants through the growth of plant materials that harbor ecology that break down pollutants in the soils and filter water runoff. Secondly, by transforming dilapidated space into functional and aesthetic pieces, a city brings economic revitalization to the surrounding area. And thirdly, when site is transformed into a useful and attractive space the area becomes more attractive to potential businesses and tourists.

This mindset of design applies to projects large and small. When we think about renovating our residential spaces we have two options. Tear everything out and start anew, or integrate and recycle. Many people in the industry will take the easy road- remove it all and put in new. I urge more of you to consider the value in preserving and recycling the old. Keep more structures out of the landfill. Integrate those priceless 30 year old shrubs into the plans if you can with a nice pruning. Reuse materials where you can. New is not always better, it’s just cleaner for a few years.


Date: Mar 28, 2016
AUTHOR: tbaumdesign
Comments: 1