AppHarvest

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AppHarvest, Inc.
Company typePublic
IndustryFarming, vertical farming, hydroponic farming
Founded2017
HeadquartersMorehead, Kentucky
Key people
Jonathan Webb, CEO
Websiteappharvest.com Edit this on Wikidata

AppHarvest, Inc. is an American food production company developing and operating indoor farms in Appalachia. The company operates a 60-acre tomato farm in Morehead, Kentucky,[1][2] with plans to operate an additional 3 farms across Kentucky.[3][4]

Founded by Jonathan Webb, the company aims to use Kentucky's central geographic location to reduce carbon emissions, delivering produce to Midwest and East Coast markets.[1] AppHarvest's greenhouses aim to primarily use sunlight in lieu of LEDs for growing plants hydroponically.[5]

AppHarvest attracted notable figures to its board, including Martha Stewart, activist investor Jeffrey Ubben, former Impossible Foods CFO David Lee, and J.D. Vance, the venture capitalist and author of Hillbilly Elegy, who later won a U.S. Senate seat in Ohio.

The company became publicly listed after a merger with special purpose acquisition company Novus Capital Corp in 2020.[6] Since that time, the company's stock has lost more than ninety-five percent of its value[citation needed], prompting increased criticism of the company's management and operations.[by whom?] On July 24, 2023, AppHarvest filed for Chapter 11 bankruptcy.[7]

Locations[edit]

  • Morehead (60 acres)[3]
  • Berea (15 acres)[8]
  • Richmond (60 acres)
  • Somerset (30 acres)

Criticisms and Controversies[edit]

AppHarvest, Inc. was covered in a Grist investigative report and was found to host an unsafe work environment where workers faced extreme heat inside the greenhouses, with temperatures sometimes reaching 155 degrees Fahrenheit, causing health issues.[9] Contract workers outnumbered local employees and had fewer benefits, contrary to the company's original pledge to help the local economy. Multiple safety complaints were filed about the heat, mold, and broken equipment in the workplace, but workers said issues were not adequately addressed.

As of November 2022, five federal lawsuits have been filed against AppHarvest by its shareholders due to dissatisfaction with the significant decline in the company's stock price and allegations of fraud.[10] Shareholders claim that AppHarvest's executives misrepresented the company's preparedness for its launch to investors and regulators, including the U.S. Securities and Exchange Commission. Additionally, the lawsuits allege that while these misleading actions took place, top executives were awarded substantial compensation in the form of millions of dollars.

References[edit]

  1. ^ a b Peters, Adele (2019-06-10). "This startup is going to put one of the world's largest sustainable greenhouses in coal country". Fast Company. Retrieved 2022-07-07.
  2. ^ Kang, Liz (October 6, 2021). "Could the biggest greenhouse in the US be the future of farming?". CNN. Retrieved 2022-07-07.
  3. ^ a b Greenaway, Twilight (2022-04-06). "What Will the Rise of Giant Indoor Farms Mean for Appalachian Kentucky?". Civil Eats. Retrieved 2022-07-07.
  4. ^ Moomey, Liz (2022-02-28). "AppHarvest recorded a $166 million loss in 2021. It's set to open 3 farms this year". Lexington Herald-Leader.
  5. ^ Peters, Adele (2021-01-19). "This state-of-the-art indoor farm is transforming Appalachia into an agricultural powerhouse". Fast Company. Retrieved 2022-07-08.
  6. ^ "AppHarvest to go public via merger with blank-check firm". Reuters. 2020-09-29. Retrieved 2022-07-08.
  7. ^ "AppHarvest files for Chapter 11". Wall Street Journal. July 24, 2023. Retrieved July 24, 2023.
  8. ^ Hempel, Marisa (2022-07-07). "Appharvest locations in Madison County Nearly Complete and Soon Ready to Deliver Fresh Foods". WBONTV. Archived from the original on 2022-07-07. Retrieved 2022-07-08.
  9. ^ Gaffney, Austyn (2023-11-16). "A celebrated startup promised Kentuckians green jobs. It gave them a 'grueling hell on earth.'". Grist. Retrieved 2023-11-24.
  10. ^ Cheves, John (November 22, 2022). "Once called 'future of farming,' AppHarvest discloses 'substantial doubt' about its future". Lexington Herald Leader. Retrieved November 24, 2023.
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