Controlled Environmental Farming (CEF), a corporation registered in Minnesota, USA, is looking for investors for its mission: to engineer, construct and operate agricultural facilities that contain the optimum growing environment for the cultivation of locally grown fresh vegetables, fruit, herbs and fish year-round. The first stage is to begin operations in Carlton, MN through the leasing of land in the City of Carlton, MN near Interstate 35. The company plans to construct a 10,000-sf single level-controlled environment facility for year-round organic food production.
CEF is positioned to receive a SBA Guaranteed Loan through the 504 Program partnering with Frandsen Bank and Trust, Cloquet, MN. The loan would be for $3.0M and they would like to secure another $1.0 - 1.5M.
Controlled environment kit
"The facility is designed as a kit and can be replicated just about anywhere geographically", explains Bruce Carman, founder of CEF. "It can produce 20,000 lbs of fruits, vegetables, herbs, shrimp and fish in a closed loop system. It will be equipped with food grade approved aquaponic equipment. Renewable energy is used where possible and delivery is proposed using electric vehicles. Construction start is scheduled for May 1, 2019, weather permitting, with growing operations projected to start October 1, 2019."
The system uses a flood and drain method for nutrient water distribution, using a series of valves, that open and close, through a computer software program. This enables each plant to receive the precise amount of nutrient concentrate and atmospheric oxygen saturation, for optimum plant growth.
240,000 pounds of fresh produce, 24,000 pounds of fish
The 10,000-square foot facility that CEF plans to build in late spring 2019 will annually produce 240,000 pounds of fruits, vegetables and herbs to be delivered to schools, hospitals, food distributors restaurants and grocery stores. CEF will also supply 24,000 pounds of tilapia to a fish processor for value-added filleting and distribution.
CEF has a marketing plan in place to get the produce it will produce to consumers. Answering the Farm to School product shortages, it has introduced a nutritious product line called “Mother’s Choice”. Within that product line is their salad blend, named the “ABC Salad”. It contains a mixture of 6 dark greens that will all be cultivated, processed and packaged in the Carlton County facility. The “ABC Salad” has already been reviewed by MDE Child Nutrition Specialists.
Other products described in the CEF Product Guide and products yet to be included in the Guide, such as Snap Peas, will be included in the “Mother’s Choice” product line.
All the products in the “Mother’s Choice” Farm to School program will be shipped in accordance with Food Safety Guidelines, Pre-Cut, available year round and pricing will be school-year guaranteed.
'Minimum margin of 40 percent'
Bulk sale revenues are projected to be $1,660,800 annually with a minimum margin of 40.0 %, according to Bruce. "The newly constructed Carlton facility, will be the first part of a larger plan to serve the fast growing and locally underserved fresh food market. The highly scalable business model requires low capital investment. CEF is seeking to secure $4.0M USD to lease the land, construct the facility, purchase the equipment and provide the working capital to start construction June 1, 2019 and sales October 1st, 2019."
To find out more about the project, see the company's business plan.
For more information:
Controlled Environmental Farming
Bruce Carman
218.370.2005
conenvfarm@gmail.com