A New Grower Talks Funding, And Why Local Greens Really Matter
Tim Costley only became an indoor farmer last year, but he’s always been an entrepreneur. After serving in the military, Costley started a number of successful businesses — pest control, tree trimming, feed and seed supply — all related to agriculture and living things. Always on the lookout for a new venture, Tim realized his family’s hilly, 10-acre plot in Georgia could support a greenhouse. Last year, he dove in with Contain vendor AmHydro.
Now, he’s supplying local restaurants and school systems with fresh herbs and lettuce. We caught up with Tim to talk about the challenges and promise of indoor, local agriculture, and how Contain helps indoor farmers find financing.
How did you get into indoor agriculture?
As a young man I got involved with a couple of businesses and that really lit the fire to become an entrepreneur. I loved being outside, being a veteran of the military and sports and that, and I liked physical activity, so I got into landscaping. I ended up with a variety of different businesses over the years.
Nothing is more exciting to me than having some kind of passive income that’s growing while you’re doing something else as a business-owner. You’ve got your crews out working and you’ve got this cashflow working while you’re out hunting for the big game, so to speak.
I wanted my land to produce, but having 10 acres or so in the rolling hills of Georgia really limited me. I couldn’t go out and plant 50 acres of corn on a 10 acre plot, so I got to looking into different ways I could produce and be what I call a “viable farmer,” someone with a cash-producing crop that was meaningful, that made the right amount of income to pass the “hobby farmer” where you’re growing peppers on your deck. I got to looking and I came up with the idea, alright, the only option for me that would be viable on small acres would be to look at hydroponic setups.
What were some of the biggest challenges in getting started, and how did Contain help?
We had some budget concerns. I had great credit, good connections in the community, good collateral, all this. Even then, I didn’t have 100, 150K to throw at this thing to do what I wanted to do. The traditional lending outlets look at you like you have three heads. “Hydro-what?”
That was a godsend for us for you guys to come in and consider doing the financing, and we worked it through one of my existing businesses. It worked out really well for Contain to come in, understanding the industry, to do the loan. I was actually a little over budget, but you were able to change the terms a little bit and get me over a threshold, and boom we were off and running, and I was able to afford the financing to do the concept.
Why do you think locally grown produce is important?
From the business side, it’s buy here, pay here — that kinda sounds like a car lot [laughs]. When you buy local, Joe Schmo buys my product or my service from the community, and I pay taxes, and his kids go to the same schools that I support with my money and my time. It’s a tight ball of swirling money that stays in the community instead of pulling out.
Also, there’s the health of it. You know, I’m well known in the community. So is my family. You know that I’m not going to put something in or on my lettuce that’s going to harm my children, which are in the same school system as your children. I have a vested interest in a high-quality product that’s safe and nutritious because I’m eating the same darn thing you are.
If you had a magic wand and could change something about indoor agriculture, what would it be?
I tried to get into some wholesaling, maybe do a bit of wholesaling to some of these distributors who are local or regional. They’re a bit more difficult to get in with. They may not want to work with local farmers selling to local people. To them, local is within 500 miles. To me, local is within 20 miles, you know what I’m saying. They’re more regional actually, and we’re more strictly local. Farmer to farmer, I’ve noticed there’s not a lot of trust and camaraderie in it.
What trends or developments are you most excited about in indoor ag?
With this automated house that we have, it’s freakin’ Star Wars man. I monitor my settings. My house monitors its environment. Based on the settings I can change the amount of shade, the amount of heat, the airflow, the humidity, the CO2 levels and so on. I’m in control of my business. 100%? No, but that just amazes me, that we can grow this in Dawsonville, Georgia, which I’m doing, or in Africa in arid regions, or another part of the world. To me that’s amazing, truly amazing.
This conversation transcript has been lightly edited for length and clarity. Learn more about Contain and funding your indoor ag business at our website.
