• Wheat futures reached an all-time high in 2022. Other ag commodity futures, including soybeans and live cattle, reached the highest prices in at least five years. Supply constraints due to Russia’s invasion of Ukraine and challenging growing conditions caused by extreme weather and aridification drove commodity price increases, leaving many farmers flush with cash to reinvest in ag technologies. Prices have since receded for many commodities but remain historically elevated.

• Retail fertilizer prices began to surge in 2021, reaching record highs in early 2022 following Russia’s invasion of Ukraine. Without recourse, many farmers turned to biological fertilizers to supplement or replace expensive synthetic fertilizers.

• Indoor farming operators expect to grow revenue a median 35% in 2023, although median EBITDA is forecast to be negative until 2024.

• Despite strong revenue growth, indoor farming companies have seen stock prices decline more than 80% from their market peak, suggesting investor concern for these companies’ ability to survive their profit declines. AppHarvest recently completed a saleleaseback to feed its cash burn.