Square Roots pauses commercial production, pivots to ‘farming as a service’ model

Hydroponic grower Square Roots is pivoting in how it does business.

A company spokesperson recently confirmed with The Packer that the controlled environment agriculture company is pausing commercial production at several of its farms and moving to a “farming as a service” business model. What this major shift means for the company is still unclear.

“Square Roots has recently moved to a ‘farming as a service’ business model. We're now operating our controlled-climate farms exclusively for our strategic partners — whether that's to immediately secure the supply of high-quality crops or to explore novel ways of profitably growing high calorie food indoors," Square Roots said in a statement to The Packer.

“As we've made this move, we have had to pause commercial production in some of our facilities while we reconfigure them to be more suitable for servicing customers under the farming as a service model, and we look forward to bringing these facilities back online in the future," the statement continued. "Others are already servicing customers under ‘farming as a service’ contracts."

Halting growth and pausing production

The CEA startup was co-founded in 2016 by entrepreneur Tobias Peggs and Elon Musk’s brother, Kimbal Musk, and has since opened four container farms across the U.S. — in Michigan, Wisconsin, Ohio and Kentucky.

Known for its modular, stackable farm structures built from upcycled storage containers, the company has grown considerably in its seven years of business. In recent months, Square Roots even secured partnerships with UNFI and Gordon Food Service. Structuring its business around container farms co-located at the site of major food distribution locations across the country, the company opened its newest facility in Shepherdsville, Ky., this year.  

WDRB in Kentucky reported that sources said that most of the Square Roots staff has been laid off and that moving forward under the new business model, Square Roots doesn’t plan on retaining any employees. Three of the company's four farms are slated to close — including the Wisconsin, Ohio and Kentucky-based facilities — with a remaining Michigan farm anticipated to stay open, according to WDRB.

More Square Roots coverage 

• Square Roots opening its fourth farm

• It’s freezing outside, but hydroponic grower Square Roots says it’s thriving inside

• UNFI to co-locate Square Roots indoor farms at distribution centers nationwide

• Square Roots opens new facility in Kentucky