Mostly it's just economies of scale. Who cares if 20% of the crop is lost to random soil related problems if you can grow ten times as much stuff in dirt than in a controlled environment. Land is so much cheaper than indoor farming.
However, I think the critical thing that is going to make indoor farming commercially viable will be water prices. At some point, the heavily subsidized water in the western US is going to finish collapsing. Indoor farming lets you milk every drop of water into product. We're talking 10:1 ratios of water usage between outdoor and indoor farming.
Currently, water to grow iceberg lettuce is about 12% of the total cost in California at $216 per acre foot. Currently it is possible for those rates to triple or even quadruple in the next few years. We may be seeing a lot more indoor growing soon!
However, I think the critical thing that is going to make indoor farming commercially viable will be water prices. At some point, the heavily subsidized water in the western US is going to finish collapsing. Indoor farming lets you milk every drop of water into product. We're talking 10:1 ratios of water usage between outdoor and indoor farming.
Currently, water to grow iceberg lettuce is about 12% of the total cost in California at $216 per acre foot. Currently it is possible for those rates to triple or even quadruple in the next few years. We may be seeing a lot more indoor growing soon!
Totally exciting!