Virginia has long understood the importance of nurturing promising new industries, and indoor agriculture is no exception. Despite some recent skepticism about the industry’s relevance, we in Virginia see it differently. Here, indoor agriculture represents more than just a tech trend; it signifies a source of skilled horticultural and manufacturing jobs, rural development, and cutting-edge technology that can complement outdoor agriculture, providing fresh, locally grown produce.
Similar to other growing industries, indoor agriculture holds immense potential. While not every company will thrive, it’s an early-stage sector, and those who fail to support it may miss out on a unique opportunity.
Several years ago, Virginia laid the groundwork for a different revolution. Despite early critics, Virginia invested in the budding technology that grew into Data Center Alley, which now spans Fairfax and Loudon counties. It evolved into a vital ecosystem powering global digital infrastructure and turned the commonwealth into ‘the internet capital of the world.’
Today, we find ourselves at a critical juncture, faced with the urgent need to shape and diversify the future of our economy. Just as we foresaw the potential of the internet amid doubt, we are now turning our attention to a new frontier.
As an economic powerhouse enhanced by our rich agricultural history, manufacturing leadership and recent growth in technology, life sciences and professional services, Virginia is well-equipped to meet this challenge. Our renowned universities, skilled workforce, strategic location and commitment to innovation are the ideal ingredients to cultivate indoor farming.
Indoor agriculture represents a remarkable fusion of innovation and technology to address the age-old challenge of providing ample food with minimal land and resources. Over the last 15 years, companies such as AeroFarms, Beanstalk, Better Future Farms, BrightFarms, Greenswell Growers, Plenty Unlimited, Red Sun Farms and Soli Organic have invested in operations across the state, making Virginia the country’s largest hub for indoor agricultural operations.
These enterprises have brought hundreds of highly skilled and well-paid jobs, spurring growth in related industries and injecting opportunity into rural communities. Critically, these operations and jobs are dispersed across the Shenandoah Valley in communities such as Culpepper and Harrisonburg, not concentrated in the “Golden Crescent.”
Virginia is strategically positioned to become a leading hub for indoor agriculture, fostering partnerships, incentives, research and a skilled workforce pipeline. Our universities, specializing in agriculture and technology, are exploring tactical research and development, and addressing high-skill career demands. Collaborative programs such as the Controlled Environment Agriculture Innovation Center in Danville, initiated by Virginia Tech and the Institute for Advanced Learning and Research, are driving industry progress, complemented by Virginia State’s academic and research programming that are shaping the next generation of industry professionals.
We also support innovative entrepreneurs, start-ups and industries through policy initiatives and market development strategies. Recently, Gov. Glenn Youngkin reinforced this commitment by expanding the agricultural sales tax exemption. It now includes items used to produce agricultural products within controlled environment commercial facilities, a significant incentive for businesses seeking growth opportunities.
We know that it will take a diverse ecosystem to accelerate indoor innovation, including finance, retail, food, education, utilities and more, to drive Virginia’s future as the preferred destination for indoor agriculture. Last fall, we hosted the first Great Indoors Symposium, bringing together leading innovators across the sector to discuss scaling these technologies. We are confident the conversations and relationships initiated at that illuminating and energizing event will continue to advance the future of indoor food production.
Our approach to indoor agriculture exemplifies why the commonwealth’s economic development strategy works. We combine traditional elements of business development with a forward-looking analytical approach, predicting and targeting up-and-coming industries and creating an ecosystem tailored to their needs.
Growing up on our family’s farm in the Shenandoah Valley shaped my understanding of agriculture’s critical role in Virginia’s robust economy and communities. Today, whether indoors or outdoors, agriculture is evolving with new advancements, and innovation is instrumental in shaping Virginia’s economy and future for generations to come.
Matthew Lohr is the Virginia secretary of agriculture and forestry.
