>> Thompson: THE UNITED NATIONS

ESTIMATES THAT BY THE YEAR 2050,

THE WORLD'S POPULATION WILL GROW

FROM TODAY'S 7.5 BILLION PEOPLE

TO NEARLY TEN BILLION.

AND AS NATURAL RESOURCES LIKE

FARMLAND AND WATER BECOME

SCARCE, FEEDING EVERYONE WILL

BECOME AN EVEN GREATER

CHALLENGE.

IN TONIGHT'S SIGNATURE SEGMENT,

NEWSHOUR WEEKEND'S IVETTE

FELICIANO REPORTS ON HOW THERE

MIGHT A SOLUTION WELL UNDER WAY

IN THE NETHERLANDS.

THIS STORY IS PART OF OUR

ONGOING SERIES, "PERIL AND

PROMISE: THE CHALLENGE OF

CLIMATE CHANGE."

>> Reporter: JUST SOUTH OF THE

HAGUE, IN THE WESTLAND REGION OF

THE NETHERLANDS, MILES UPON

MILES OF GREENHOUSES ARE SPREAD

ACROSS THE LANDSCAPE.

THEY'VE BEEN BUILT BY DUTCH

FARMERS AS PART OF A 20-YEAR

MOVEMENT BY THE COUNTRY TO

PURSUE SUSTAINABLE AGRICULTURE

BY GROWING INDOORS.

DUTCH FARMER HANS ZWINKEL GROWS

TOMATOES IN TWO GREENHOUSES THAT

COVER 20 ACRES OF LAND.

HIS ANNUAL HARVEST OF

2.5 MILLION POUNDS OF TOMATOES

IS MORE THAN DOUBLE THE AVERAGE

YIELD OF AN OUTDOOR FARM.

>> THE PLANT STARTED OVER THERE

AS A SMALL PLANT, STANDS ABOUT

FIVE METERS, SIX METERS FURTHER.

>> Reporter: ZWINKEL AND GROWERS

LIKE HIM ACHIEVE HIGH YIELDS BY

CONTROLLING THE CLIMATE AND

WATER FOR THEIR CROPS UNDER

GLASS.

FILTRATION SYSTEMS ALLOW THEM TO

COLLECT AND RECYCLE THE PLANTS'

WATER SUPPLY.

CROPS RECEIVE DIRECT SUNLIGHT,

SUPPLEMENTED AS NEEDED BY

ARTIFICIAL LIGHT, AND ARE

PROTECTED FROM UNPREDICTABLE

WEATHER EVENTS AND INSECTS,

WHICH ALMOST COMPLETELY

ELIMINATES THE USE OF CHEMICAL

PESTICIDES.

>> IT'S NICE TO SEE THE PLANTS

GROW.

YOU... IT GIVES YOU ENERGY.

>> Reporter: THESE INDOOR

GROWING TECHNIQUES HAVE HELPED

FOSTER AN INDOOR GROWING BOOM IN

THE NETHERLANDS.

GREENHOUSES NOW PRODUCE 35% OF

THE COUNTRY'S VEGETABLES DESPITE

OCCUPYING LESS THAN 1% OF ITS

FARMLAND.

THE NETHERLANDS' WAGENINGEN

UNIVERSITY HAS LED MUCH OF THE

RESEARCH ON HOW TO BEST GROW

CROPS INDOORS.

LEO MARCELIS, A PROFESSOR AT THE

UNIVERSITY, SAYS THAT IN THE ERA

OF CLIMATE CHANGE, THE DUTCH

AGRICULTURAL REVOLUTION NEEDS TO

MOVE BEYOND GREENHOUSES, WHICH

STILL RELY ON SOME OUTSIDE

FORCES LIKE SUNLIGHT.

>> WE WANTED TO CONTROL THE

PRODUCTION PROCESS, THAT WE CAN

CONTROL THE YIELD, THE QUALITY,

THAT WE CAN GIVE GUARANTEES

TOWARDS THE CONSUMERS.

ALTHOUGH WE CAN CONTROL A LOT,

WE'RE STILL DEPENDENT ON THE

OUTDOOR CONDITIONS.

SO, THE NEXT STEP WOULD BE TO

HAVE A FURTHER CONTROL SO WE

CAN, IN FACT, GUARANTEE HOW MUCH

PRODUCE WE WILL HAVE TOMORROW OR

ON ANY DATE OF THE... OF THE

YEAR, OF A GUARANTEED QUALITY.

>> Reporter: MARCELIS IS NOW

EXPERIMENTING WITH INDOOR

VERTICAL FARMING, GROWING

PLANTS STACKED ON SHELVES TO

MAXIMIZE SPACE AND COMPLETELY

CUT-OFF FROM THE OUTSIDE.

AS IN MANY GREENHOUSES, WATER

FOR THE PLANTS IS DRAINED,

COLLECTED AND REUSED, REDUCING

THEIR DEPENDENCE ON AN OUTSIDE

WATER SOURCE.

AND INSTEAD OF SUNLIGHT, THE

RESEARCHERS USE LEDs, LIGHT

BULBS THAT CAN REPLICATE SOLAR

LIGHT IN A VARIETY OF COLORS AND

INTENSITIES.

>> WHETHER WE ARE GROWING

TOMATOES, WHETHER IT'S ABOUT

GETTING FRUITS, OR WHETHER IT'S

A LETTUCE OR A LEAFY VEGETABLES,

YOU CAN IMAGINE THAT YOU WANT A

DIFFERENT TYPE OF PLANT, AND

THAT MAY REQUIRE THEREFORE A

DIFFERENT LIGHT.

WITH LEDs, WE CAN ALSO PUT THEM

IN BETWEEN THE PLANTS, AND

THAT'S VERY GOOD BECAUSE USUALLY

THERE IS MAYBE TOO MUCH LIGHT ON

THE TOP BUT INSUFFICIENT AT THE

BOTTOM.

SO, WE CAN HAVE A MUCH BETTER

DISTRIBUTION OF THE LIGHT IN THE

PLANT.

>> Reporter: BUT GROWING INDOORS

ISN'T CHEAP.

MARCELIS SAYS A QUARTER OF THE

EXPENSES FOR INDOOR GROWERS IN

THE NETHERLANDS RELATE TO

CONSTRUCTION, SOMETHING FARMERS

WHO GROW IN FIELDS DON'T HAVE TO

WORRY ABOUT.

THEN, THERE'S THE ENERGY COSTS

OF ROUND-THE-CLOCK CLIMATE

CONTROL AND ARTIFICIAL LIGHTING.

BUT MARCELIS SAYS A KEY

ADVANTAGE TO INDOOR FARMING IS

THAT BY CREATING IDEAL GROWING

CONDITIONS AND MAXIMIZING SPACE,

IT CAN PRODUCE MUCH HIGHER

YIELDS-- IN SOME CASES, UP TO

350 TIMES THE YIELD OF A

CONVENTIONAL FARM OF THE SAME

SIZE.

>> WHAT REALLY MATTERS IS IF THE

INCOME IS LARGER THAN THE COST.

SO, IF THE INVESTMENT COSTS ARE

HIGH AND ALSO THE OTHER COSTS

ARE HIGH, WELL, IF THE INCOME IS

THEN ALSO VERY HIGH, THEN IT IS

ABOUT THE BALANCE.

>> Reporter: MARCELIS SAYS ONE

IMPORTANT PART OF THEIR WORK IS

DEVELOPING TECHNIQUES THAT CAN

BE REPLICATED ANYWHERE, EVEN IN

ARID CLIMATES LIKE THE MIDDLE

EAST OR SUB-SAHARAN AFRICA.

THE UNITED NATIONS ESTIMATES AS

THE WORLD'S POPULATION GROWS,

GLOBAL FOOD DEMAND WILL RISE 70%

BY 2050 EVEN AS THE AMOUNT OF

WATER AND FARMABLE LAND SHRINKS

DUE TO GLOBAL WARMING.

THE NETHERLANDS IS ALREADY DOING

ITS PART TO FEED THE WORLD.

PROPELLED BY INDOOR FARMING,

IT'S BECOME THE SECOND BIGGEST

FOOD EXPORTER IN THE WORLD,

ACCOUNTING FOR NEARLY

$90 BILLION LAST YEAR.

THIS IS ALL THE MORE ASTOUNDING

GIVEN THAT THE NETHERLANDS IS

LESS THAN 1% THE SIZE OF THE

UNITED STATES, THE WORLD'S

NUMBER ONE FOOD EXPORTER, WHERE

INDOOR FARMING IS ALSO GAINING A

FOOTHOLD.

HERE IN KENNETT TOWNSHIP,

PENNSYLVANIA, MUSHROOM GROWERS

HAVE BEEN USING INDOOR FARMING

TECHNIQUES FOR OVER 100 YEARS

AND TODAY PRODUCE HALF THE U.S.

MUSHROOM CROP.

AN HOUR OUTSIDE PHILADELPHIA,

THIS SMALL COMMUNITY OF 8,000

PEOPLE HARVESTS HALF A BILLION

POUNDS OF MUSHROOMS EVERY YEAR,

ALL OF IT INDOORS AND AT A LOW

COST OF ABOUT $1 PER POUND.

>> WE INVESTED NINE YEARS AGO

INTO A DUTCH-STYLE FARM.

>> Reporter: CHRIS ALONZO OWNS

THIS INDOOR FARM THAT USES

VERTICAL FARMING METHODS SEEN IN

THE NETHERLANDS.

>> WE PUT IN ALUMINUM SHELVING

INSTEAD OF WOODEN BEDS.

WE INVESTED IN EQUIPMENT WHICH

MADE THE JOB LESS LABOR

INTENSIVE.

WE HAVE HEAT IN THE ROOM, AIR

CONDITIONING IN THE ROOM, AND

AIR FLOW.

AND WE USE THOSE TOOLS TO MAKE

SURE THAT THE ROOM ENVIRONMENT

IS SPECIFICALLY CONTROLLED FOR

WHAT THE MUSHROOM LIKES.

>> Reporter: USING THESE

TECHNIQUES, ALONZO'S FACILITY

ALONE IS RESPONSIBLE FOR MORE

THAN 1% OF THE NATION'S MUSHROOM

CROP, GROWING 11 MILLION POUNDS

OF MUSHROOMS A YEAR, PROTECTED

FROM POTENTIALLY HARSH OUTDOOR

CONDITIONS.

>> THE ONLY DAY WE TAKE OFF IS

CHRISTMAS.

AND THE CONSUMER WANTS FRESH

PRODUCE YEAR-ROUND, SO WE'RE

ABLE TO MEET THE NEEDS TO HAVE

LOCALLY GROWN PRODUCE ALL YEAR-

ROUND, AS OPPOSED TO SOME CROPS

WHERE THEY'RE ONLY GROWN

SEASONALLY.

THIS IS OUR ENVIRONMENTAL

CONTROL UNIT.

>> Reporter: ALONZO SAYS THE

DIFFICULTY WITH INDOOR FARMING,

AS WITH OUTDOOR FARMING, IS

FINDING THE BALANCE BETWEEN YOUR

HARVEST'S REVENUE AND ITS

EXPENSES.

>> SO, MUSHROOMS HAS BEEN

SUSTAINABLE FOR... FOR

GENERATIONS.

HOWEVER, LAND IS AFFORDABLE

BECAUSE MOTHER NATURE PROVIDES

RAIN, MOTHER NATURE PROVIDES

SUN.

GROWING INDOORS IS VERY CAPITAL

INTENSIVE.

YOU HAVE THE BUILDING, YOU HAVE

THE INFRASTRUCTURE, YOU HAVE

ENERGY COSTS.

BUT IF YOU CAN MAXIMIZE

PRODUCTIVITY AND HAVING

CONSISTENT QUALITY YEAR-ROUND,

YES, IT'S ECONOMICALLY VIABLE,

BUT THE MARGINS ARE STILL VERY

TIGHT.

>> Reporter: MOST INDOOR FARMERS

CAN'T GROW AT THE SAME SCALE AS

MUSHROOM FARMERS IN KENNETT

TOWNSHIP.

BUT WHERE THEY AND SOME VENTURE

CAPITALISTS SEE THE FUTURE OF

INDOOR AGRICULTURE LYING IS IN

SMALL-SCALE URBAN PRODUCTION IN

AREAS WITH NO FARMING INDUSTRY

OF THEIR OWN.

>> THE PLACE WHERE WE'RE

STEPPING IN NOW IS TO SERVE

DEMAND THAT IS UNMET.

>> Reporter: 3,000 MILES WEST OF

ALONZO'S FARM, INDOOR FARMING

PIONEER MATT BARNARD HEADS A

MAJOR AGRICULTURE PROJECT IN SAN

FRANCISCO CALLED PLENTY.

ITS FARM IS A RETROFITTED FORMER

WAREHOUSE, NOW WITH WALLS OF

FRESH VEGETABLES THAT STRETCH

FOR 100,000 SQUARE FEET.

CURRENTLY, IT GROWS LEAFY GREENS

LIKE SPINACH AND KALE, THE

EASIEST AND MOST AFFORDABLE

CROPS TO GROW INDOORS, BUT IT

WILL SOON START GROWING TOMATOES

AND STRAWBERRIES, AS WELL.

THE PLANTS GROW DIRECTLY OUT OF

VERTICAL COLUMNS.

SIMILAR TO DUTCH RESEARCHERS,

THE COMPANY ALSO USES LED

LIGHTS, WATER RECYCLING AND

CLIMATE CONTROL.

NO GENETICALLY MODIFIED SEEDS OR

PESTICIDES ARE USED IN

PRODUCTION.

INSTEAD, IT'S THE ENVIRONMENT

THAT'S MODIFIED, CAREFULLY

CRAFTED AROUND EACH TYPE OF

PLANT TO GIVE THEM THE IDEAL

CONDITIONS FOR GROWING.

>> THE ADVANTAGES THAT WE FIND

ARE BECAUSE OF THAT CONTROL.

WE, FOR EXAMPLE, DON'T HAVE TO

USE PESTICIDES.

INSTEAD OF USING 15 GALLONS OF

WATER TO PRODUCE ONE HEAD OF

LETTUCE, WE USE LESS THAN ONE-

FIFTH OF A GALLON TO PRODUCE

THAT SAME HEAD OF LETTUCE.

SO, WE'RE SAVING A SIGNIFICANT

AMOUNT OF WATER.

AND WE CAN ACTUALLY INFLUENCE

THE WAY THE FOOD TASTES BY

MAKING SURE IT HAS EXACTLY THE

RIGHT NUTRIENT RECIPE, THE RIGHT

LIGHT RECIPE, THE RIGHT WATER

RECIPE.

>> Reporter: PLENTY HOPES TO

BECOME AN INDUSTRY LEADER IN

INDOOR FARMING.

THE COMPANY RECENTLY RECEIVED

$200 MILLION OF PRIVATE FUNDING,

WHICH IT PLANS TO SPEND ON

BUILDING FARMS IN THE TEN MOST

POPULOUS AMERICAN CITIES AND

HUNDREDS MORE WORLDWIDE.

BUT, AS IN THE NETHERLANDS,

PLENTY HAS TO OVERCOME CERTAIN

CHALLENGES-- THE UP-FRONT COST

OF BUILDING OR RETROFITTING

INDOOR SPACES SUITABLE FOR

FARMING, AND THE ENERGY COSTS OF

INDOOR LIGHTING AND CLIMATE

CONTROL.

BUT MATT BARNARD BELIEVES THAT

THE ADVANCES THAT HAVE BEEN MADE

IN INDOOR AGRICULTURE WILL MAKE

IT A KEY PLAYER IN FEEDING THE

WORLD'S EVER-GROWING POPULATION.

>> WE'VE ADDED, YOU KNOW, SIX

BILLION PEOPLE SINCE THE TRACTOR

CAME AROUND, AND SO WE BELIEVE

THIS IS ONE OF THE CORE

INNOVATIONS THAT'LL HELP US, YOU

KNOW, SERVE THE NEXT TWO TO

THREE BILLION PEOPLE THAT WE ADD

TO THE PLANET.