Michael Towey, Senior Vice President of Production and Infrastructure at Good Day Farm, is an accomplished operation professional with a track record of leading various components of a commercial cannabis supply chain. Possessing expertise in optimizing over two million square feet of cultivation design and operations, he has successfully collaborated with entities such as Northwest Cannabis Solutions, Lowell Farms, and Ascend Wellness Holdings. Additionally, as the founder of a product development business, he played a pivotal role in launching brands such as US Houseplant and High Times. Leveraging his creative and organized approach derived from a background in music, Michael brings effective problem-solving, leadership, and operational skills to the forefront.
How do advancements in technology contribute to increase efficiency and sustainability in indoor farming?
In my perspective, technological advancements in indoor farming, particularly in cannabis cultivation, arise from the universal need for resource control and sustainable deployment. The primary focus has been on managing energy and water, addressing issues related to water control, irrigation, and water waste. This emphasis on resource control aligns with historical agricultural efforts, such as Monsanto's development of drought-resistant wheat seeds decades ago. Current research continues to explore drought-resistant strains for crops like corn, wheat, and soy, reflecting the necessity for resilience in arid environments and changing climates. Notably, in cannabis cultivation, innovative technologies revolve around water creation to fulfill the demand for clean, inert base water.
What measures are taken to achieve a base inert starting level before reintroducing essential minerals, considering diverse sources like municipal supply, wells, or rivers?
At Good Day Farms, our water supply relies entirely on reverse osmosis systems, introducing a range of variables, especially concerning pre-filtration based on the water source—be it municipal, well, or from a nearby river. I have dedicated the past few years to identifying and partnering with top-notch reverse osmosis companies, with a primary focus on minimizing waste, a critical factor in successful RO usage. Notably, advancements in technology, particularly in recycling capabilities, have become pivotal in addressing environmental concerns and energy efficiency.
We're strong advocates of LED tech, now at 90 percent across 250,000 sq ftof indoor canopy across six sites in four states. This specialization has yielded multimillion-dollar savings in utility and HVAC usage
One standout collaboration is with Hans RO, an American company based in Detroit, initiated and owned by the Five Hour Energy Company. Their innovative reverse osmosis technology, designed as modular systems, offers predefined cabinets adaptable to specific pre-filtration needs and daily volume requirements. The most impressive aspect is its consistent 99 percent recapture rate, creating a mere 1 per cent wastewater for the gallons produced. This remarkable efficiency is crucial, especially in cannabis cultivation, where large-scale RO systems are rare outside of water facilities. As municipalities recognize the environmental impact of mineral-rich wastewater, some regions have even imposed outright bans on reverse osmosis systems. Our commitment to cutting-edge technology, exemplified by partnerships with companies like Hans RO, underscores our dedication to sustainable and efficient water management practices at Good Day Farms.
How does your cannabis cultivation business address water waste and implement effective waste tracking procedures to prevent drainage into municipal waste supplies?
Implementing sophisticated waste tracking procedures to prevent drainage into municipal water supplies is a crucial step in our water management strategy at Good Day Farms. The necessity of reverse osmosis (RO) for optimal plant performance emphasizes the importance of finding companies that can offer both reduced waste and high efficacy. This data is instrumental in convincing local municipalities of the feasibility and benefits of our water management approach.
In addition to waste control, our irrigation strategy focuses on resource-conscious practices, recognizing the variance in water requirements across different plants. While traditional agricultural practices often involve water drop systems or large-scale greenhouse cultivation, cannabis, with its higher water demand, requires a nuanced approach. At our business, we have implemented strict standards for runoff or leachate, limiting it to below 10 percent across our entire operation. This commitment ensures that only a minimal portion of the water we use ends up as runoff, optimizing water usage and supporting the plant's transpiration goals.
Our comprehensive water management approach involves assessing how we generate clean water, the technology we employ, and stringent vetting of companies for a deep understanding of their technologies. Equally vital are our operational practices, ensuring that the water we produce is utilized efficiently, reflecting our dedication to sustainable and responsible cultivation practices.
Can you elaborate on the significance of recent technological advancements in indoor farming, particularly the transition to more energy-efficient lighting systems?
In addition to technological advancements in indoor farming, the decade-long transition to LED lighting stands out as a milestone. Unlike traditional crops, cannabis demands 20-30 percentmore light, making the shift to LEDs crucial. This transition is particularly noteworthy, considering the challenges associated with traditional HID bulbs. Consequently, states like California have enforced deadlines for businesses to make the switch. Good Day Farm is committed to LED technology, having already implemented it in 90 percent of their operations and aiming for complete coverage by mid-next year. This commitment spans over 250,000 square feet across six sites in four states. The result of this dedication is multimillion-dollar savings, highlighting the dual benefits of improved lighting efficiency and reduced HVAC demands.
Regarding technological advancements, HVAC emerges as a critical factor, connecting to the broader question of technological gaps. In the cannabis and indoor farming sectors, specific HVAC companies are targeted, often specializing in technical water-chilled systems due to their efficacy, variability, and consistency. While these systems offer enhanced performance and reliability, they present challenges due to their complexity and higher costs. HVAC constitutes a substantial portion (20-30 percent) of new build-out costs, making the selection of the right system crucial for long-term success, especially considering the limited opportunities to secure substantial funding for cultivation assets. The evolving demands of HVAC in indoor farming, particularly in accommodating plants exposed to intense LED lighting, necessitate ongoing advancements and a focus on companies capable of addressing the unique challenges posed by this industry.
What key challenges do you see in advancing technology for indoor farming, especially in integrating HVAC systems?
HVAC and environmental management technology pose significant challenges in the indoor farming industry. Beyond the equipment itself, the business model of HVAC companies, which relies on service agreements, contributes to ongoing issues. Components such as compressors, fan systems, and variable speed drives frequently fail, necessitating the development of more efficient and modular systems.
The contrast between companies like York and Desert Air highlights challenges in achieving precise control over the environment throughout the plant's daily lifecycle. There is a recognized gap in HVAC performance for systems that can be modular and respond accurately in real-time to changing demands.
Another focal point is dispelling pseudoscience and anecdotal decision-making prevalent in the cannabis sector. This underscores the need to prioritize plant biology and science for effective system manipulation. Additionally, workforce management and employee training in the cannabis sector remain challenges, with misconceptions persisting about the level of manual labor and traditional farming practices involved in indoor farming.
What would be your piece of advice to your fellow peers as to how they can be successful in the industry and for upcoming professionals as well?
To thrive as cultivators and leaders in the emerging cannabis industry, it is imperative to delve into the "why." Understanding plant science, curing techniques, and the intricate details of environmental factors such as lighting, HVAC, vapor pressure deficit, temperature, and humidity is essential for daily success and consistency in cultivation. Michael identifies a significant knowledge gap among leaders regarding the intimate knowledge of how plants are produced and the levers that can be pulled for desired changes. While many businesses focus on outcomes like yield and potency, they lack insight into how these results are generated within their facilities.
Michael advocates for a continued pursuit of understanding the "why" and encourages individuals aiming for advancement to specialize in a particular aspect of the business, becoming subject matter experts. Lifelong learning is emphasized, urging individuals to surround themselves with those more knowledgeable and constantly seek improvement. Michael acknowledges the overwhelming nature of the cannabis space but underscores the importance of adopting a mentality of lifelong learning.
Finally, emotional maturity is highlighted as crucial for navigating the industry's challenges, dealing with uncertainties, unorganized practices, and embracing the positive and negative fluctuations inherent in the cannabis sector.
