Salmon Farms on Land Take Aim at a “9 Billion Industry – Image for illustrative purposes only (Image credits: Unsplash)
Homestead, Florida – A vast complex of concrete tanks now rises where tomato fields once stood, producing Atlantic salmon entirely on land for the first time at commercial scale in the United States. The operation belongs to Atlantic Sapphire, which has built the world’s largest land-based salmon farm here and aims to supply a meaningful share of American demand within the next several years. Global consumption already reaches 3.8 million metric tons annually, supporting a $19 billion market that is projected to more than double by the mid-2030s, yet nearly all of that supply still comes from ocean net-pens. The shift to controlled inland facilities is therefore drawing attention from investors, retailers, and regulators alike.
Limitations of Traditional Ocean Farming
Net-pen operations account for 99 percent of the salmon sold worldwide, but they face persistent biological and environmental constraints. Mortality rates in open-water cages typically range from 10 to 15 percent because of sea lice, disease outbreaks, and occasional mass escapes that can affect wild populations. Several U.S. states have already banned the practice, and British Columbia is phasing it out. Geopolitical tensions and regulatory caps in major producing countries such as Norway have further slowed expansion, leaving traditional producers with limited room to grow.
Expansion of Inland Facilities
More than 110 land-based projects using recirculating aquaculture systems are now under development or in operation around the world, with clusters in Iceland, Norway, and the United Arab Emirates. In the United States, Superior Fresh opened the first commercial-scale facility in Wisconsin in 2018 and has since added a second site in Indiana that began shipping fillets this year. Atlantic Sapphire’s Homestead site, which broke ground in 2017, currently operates at an initial capacity of roughly 9,500 metric tons per year and holds permits to reach 90,000 metric tons by 2026 and 180,000 metric tons by 2031. The company monitors approximately 10,000 sensors and uses artificial intelligence to adjust feeding in real time, keeping mortality below 2 percent.
| Aspect | Traditional Net-Pen | Land-Based RAS |
|---|---|---|
| Initial investment | Baseline | Up to 12 times higher |
| Operating costs | Lower energy needs | Up to 50 percent higher, mainly electricity |
| Mortality rate | 10–15 percent | Below 2 percent |
| Supply-chain exposure | Long ocean transport | Local production near markets |
Cost Pressures and Production Realities
High capital and energy requirements remain the central barrier for land-based farms. Co-founder Johan Andreassen, who left the company in 2023, observed in a 2025 statement that several leading projects had missed volume targets the previous year and that “without better volume performance, the cost structure won’t work.” Retailers including Publix, Sprouts, and Fresh Thyme Market already carry fillets from the Homestead facility, demonstrating that some consumers are willing to pay for domestically raised fish with a smaller carbon footprint. Whether the economics improve enough to capture a larger share of the market will depend on continued gains in energy efficiency and scale.
Implications for U.S. Consumers
The United States imports 96 percent of its salmon, primarily from Canada, Chile, and Norway. Successful expansion of domestic land-based production could shorten supply lines, reduce transport emissions, and offer retailers a more stable source less vulnerable to ocean conditions or trade disruptions. Industry analysts expect the share of land-based salmon to remain modest through the end of the decade, yet even modest volumes could influence pricing and labeling practices at grocery stores. The outcome will hinge on whether operators can consistently meet ambitious production schedules while keeping costs competitive with imported product.
