Jonathan Webb’s farm doesn’t look like much: tawny soil stretching to a line of trees, a trailer with a few makeshift desks. But if Mr. Webb gets his way, by mid-2020, the Morehead, Ky., property will house a 60-acre greenhouse—the first in a series of multi-acre, technology-augmented indoor farms meant to bring jobs to Appalachia and fresh-picked tomatoes to surrounding states. “If we had 500 acres of supply tomorrow, we could sell all of that supply to U.S. grocers,” said Mr. Webb, 34, who wears a uniform of dark jeans, a light denim shirt, round glasses and a Kentucky ball cap. “We cannot build fast enough or grow fast enough to meet the demand of grocers or consumers.” Mr. Webb’s vision is to turn economically distressed eastern Kentucky into the high-tech agriculture capital of the country. He has no prior experience in farming, but he has managed to attract $97 million in project financing and a list of noteworthy partners. Ultimately, he plans to spend $1 billion to $2 billion on greenhouses—even if it takes a decade or two.
Kentucky-based AppHarvest is developing indoor food production to rejuvenate Appalachian agriculture. The start-up has raised $1 billion to $2 billion and plans a 60 ac greenhouse by 2020, with further technology-backed indoor farms to follow. Partners include greenhouse builder Dalsem, food distributor Mastronardi and Philips Lighting. The funding was backed by firms including the Rise of the Rest Seed Fund at Revolution. The company is taking advantage of a rising market for indoor farming, which avoids the impact of volatile weather, cuts waste and uses less water. It also addresses consumer trends of cutting sugar and processed food and tracking food’s origins.