Understanding the Freight Farms Bankruptcy: How This Happened.

The Freight Farms bankruptcy is definitely unexpected. In the face of their closure, many of their growers (yourself potentially included) will be wondering what to do next. So, what happened to Freight Farms?

What Led to the Freight Farms Bankruptcy Filing?

There are several challenges in providing hardware in the vertical farming industry. Freight Farms were clearly facing problems making their own individual business model work, struggling to find a balance between affordability and efficacy. As a result, the company couldn't keep up with mounting costs and decreasing investor interest.

Here are the main factors that led to the Freight Farms bankruptcy (as stated by them):

1. High energy costs - Running indoor farms requires a lot of electricity for lighting and climate control
2. Expensive infrastructure - The initial setup and maintenance of container farms demands major investment
3. Trouble making profit at scale - Many farms couldn't earn enough money to cover their operating costs
4. Investor caution - After the SPAC investment boom ended, finding new funding became much harder
5. Too much complexity - Their all-in-one system had few third-party connections, making it inflexible

Moreover, the company struggled with supply chain problems that made getting parts difficult and expensive, passing all these costs across to their growers and creating the issues stated above. It's worth noting here that with reduced cost on providing hardware generally speaking, you can offset many of the challenges from above.

How Does Chapter 7 Bankruptcy Affect Current Users?

What happens now for Freight Farms customers?

Chapter 7 bankruptcy means the company is completely shutting down (not restructuring under the similarly named Chapter 11). Consequently, all official support has ended. The Farmhand operating system that controls the farms has disconnected. All growers will no longer have access to the software they depend on. Furthermore, there will most likely be no more replacement parts, warranty service, or technical support from the company.

Is This a Sign of Broader Issues in Container Farming?

If we didn't 100% believe in the potential of vertical farming, we wouldn't continue doing what we do. The closure of Freight Farms points to specific business model challenges rather than issues with container farming itself. In other words, the concept remains sound, but the execution needs work (primarily on the cost of hardware). Many other container farm companies continue to operate successfully by using different approaches.

Immediate Challenges for Current Users of Freight Farms

Current users of Freight Farms face several issues after the company's bankruptcy announcement. The sudden closure has left farmers having to find ways to maintain their operations. So, what are the biggest hurdles these growers need to overcome right now?

What Happens When Your Farm Operating System Goes Offline?

To our understanding, the Farmhand operating system that managed growing environments has disconnected. This, in turn, has left farmers without access to critical controls. As a result, many growers can't monitor or adjust their farm's climate, lighting, or irrigation systems automatically. Farmers must now track these factors manually or find alternative control systems quickly.

Moreover, the loss of data tracking means farmers can't easily reference their successful growing recipes or track crop performance over time.

Parts Replacement and Maintenance Concerns

Without the original manufacturer, finding compatible components becomes a major challenge for freight farm operators.

Consequently, when critical systems like pumps, sensors, or lighting fixtures fail, there's no official source for replacements. In addition, the proprietary nature of many components makes finding exact matches difficult. Subsequently, farmers need to identify generic alternatives or work with other technical experts to keep their systems running.

Community Resources for Freight Farm Owners

Fortunately, freight farm users are coming together to support each other.

For instance, online forums and social media groups have formed where growers share workarounds and technical advice. Furthermore, some third-party consultants with experience in container farming systems are offering support services (including ourselves and many of our trusted partners such as NuLeaf Farms, Cropbox, and more).

Growing After Freight Farm's Bankruptcy

Current users of Freight Farms seeking alternatives after the Freight Farms bankruptcy can find a reliable partner with Just Vertical. We understand the challenges you're facing. With extensive experience in the small and large scale vertical farming, we've developed systems specifically designed to help container farms return high yields. Let's explore how our technology can keep your growing operation running.

How Are Just Vertical Systems Different from Freight Farms?

Just Vertical's approach focuses on flexibility and adaptability rather than closed proprietary systems. As a result, our growing technologies are more modular and can integrate with various components you might already have.

Moreover, we emphasize a diversity of use cases and simplified controls that don't depend on complex cloud-based software. Our systems are designed with easier maintenance in mind, using more standardized parts that are readily available.

Here are the key differences between our systems and Freight Farms:

1. Modular design allows for customization to your specific needs (and space)
2. Simpler control systems that can run independently
3. Standard components that are easier to replace
4. Flexible consulting and purchasing options to fit your budget and needs

Retrofit Options for Existing Container Farms

Just Vertical offers several retrofit solutions that can work with your existing container structure. For instance, our growing towers and rack systems can be installed in your container with minimal modifications. Furthermore, our experts can help you assess which parts of your current system are still viable and which need replacing.

Partial Retrofit Solutions

If your container structure and some core components are still in good condition, a partial retrofit is often the most cost-effective options. In other words, we can replace just the critical systems like lighting, irrigation, or controls while keeping the functional parts of your current setup.

Complete System Overhauls

For older systems, those with multiple failing components, or farms just looking for a simple upgrade, a complete retrofit often makes more financial sense in the long run. Consequently, this approach gives you the latest technology and eliminates compatibility issues that can arise with mixed systems.

Indoor Farming Consultants: Closer Than You Think

With over 15 years of experience in indoor farming, we understand the technical challenges you're facing. Therefore, at Just Vertical, we offer specialized consulting services to help you get your growing operation back on track. We're not just hardware suppliers. We provide comprehensive consultation and support, as well, ensuring your continual growth is a success.

We offer two major avenues of consultation - on-site assessments and evaluations, and remote support for Freight Farm users.

On-Site Assessment and Troubleshooting

Conveniently located in Toronto in Canada, we often consult on growing projects in person. When our experts visit your container farm, we conduct a thorough evaluation of all systems to identify your current growing set up. Our approach is hands-on and practical.

We can help with a variety of growing issues and challenges, providing you with a clear action plan tailored specifically to your farm's unique needs.

Remote Support Options for Freight Farm Users

Our virtual consulting services provide immediate help to farms in any location. Through video calls and remote monitoring tools, we can guide you through many common issues without delay. In addition, we can help you document your current setup and create emergency operation protocols to maintain production.

Our remote support includes:

1. Initial system assessment to identify critical issues
2. Operational efficiency analysis to reduce costs
3. Crop-specific growing recommendations to maintain productivity
4. Staff training and development for manual operations

The Future of Container Farming: Beyond the Freight Farms Bankruptcy

Despite the freight farms bankruptcy, the future of container farming remains bright and full of potential. In fact, this industry setback has sparked innovation and adaptation that will ultimately make indoor growing more resilient. Growers (and in turn, suppliers) who navigate this transition successfully will find themselves well-positioned for long-term success in this evolving market. We believe we are perfectly positioned for that transition.

Is Container Farming Still Viable as a Business Model?

Absolutely! The fundamental economics of container farming continue to make sense for many markets. First, the ability to grow fresh produce year-round regardless of climate conditions creates consistent revenue opportunities. Moreover, container farms excel in locations with limited growing space, high transportation costs for fresh produce, or challenging outdoor growing conditions. Rising consumer interest in locally-grown food supports premium pricing for farm-to-table operations.

Technological Innovations Pushing the Industry Forward

Several exciting developments are also making indoor farming systems more efficient and profitable than ever before. For example, LED lighting technology continues to advance each year, using significantly less energy while providing optimized light spectrums for different growth stages. Similarly, improved climate control systems maintain ideal growing conditions with minimal energy input.

Other notable innovations in the last few years include:

• AI-powered growing systems that adjust conditions automatically
• Simplified control interfaces requiring less technical expertise
• Energy recovery systems that recapture heat and water
• Modular designs allowing for gradual expansion as demand grows

INDUSTRY INSIGHT: The indoor farming industry is experiencing its "right-sizing" phase typical of maturing technologies. While some larger players have faced challenges, smaller operations with lean business models and focus on local markets are often achieving better sustainability and profitability.

Making Sense Of It All

The Freight Farms bankruptcy presents a challenge, but it's also an opportunity for growth. For current users, this shift doesn't mean the end of your container farming journey---it's a chance to improve and build an even stronger, more efficient operation.

While the uncertainty of losing support systems is understandable, the core value of your farm (growing fresh, local food year-round) remains. Your farm's infrastructure and your expertise are invaluable assets, and with the right guidance, they can be optimized for even greater success.

At Just Vertical, we are excited about the future of container farming. Controlled environment agriculture (CEA) continues to grow in importance, offering incredible benefits like water efficiency, reduced food miles, and crop consistency. We're here to help you transition smoothly to sustainable, high-performance solutions that keep your farm running strong.

Whether you need immediate support to keep your system operational, retrofitting solutions to enhance your farm, or a full transition to new technology, our team is ready to assist. With our experience helping farms of all types, we're well-equipped to guide you through this positive transition.

While the end of Freight Farms is a setback, it's not the end of container farming. Together, we can transform this challenge into an opportunity to build a more resilient, innovative operation that will thrive for years to come.

Let's Have A Conversation.

Want to hear how we can help you with your Freight Farm? Or maybe you just want to pick our brains on your plans to grow vertically? We're here to help!

Fill out the form and we'll reach out within 24 hours to answer every and any question.