Got the Green Thumb Itch but live in the Concrete Jungle? Dallas-Based Gardenuity combines tech and earth to offer a Customized Gardening Experience

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Anyone living in Dallas can tell you that the urban space is not conducive to growing your own crops. But one Dallas-born entrepreneur hopes to change that. Donna Letier with cofounder Julie Eggers kickstarted the lifestyle tech company Gardenuity to cleverly mix modern technology with old-fashioned gardening. Hailed as the “Blue Apron” of gardening, Gardenuity helps urban dwellers get in touch with their green thumb.

“With technology we are changing the language of gardening,” Letier said. With its Gardenuity Match app, similar to Tinder but for plants and gardeners, users can find their ideal plant based on their zip code, food preference, and lifestyle. Geared towards newcomers to gardening who don’t live near agrarian spaces, Gardenuity then sends clients a customized gardening kit complete with pre-portioned soil, custom compost, the plant itself, a portable container, and planting instructions.  Letier explained, “We won’t sell you something that it’s not the right time to plant. We also create custom compost based on your ZIP code, what you’re growing and the time of year. We’ve really customized it down to the ZIP code, which is really cool.”

The company also developed a “concierge” to assist clients through reminders, weather alerts, and growing tips. For instance, if you are keeping plants on a balcony and a heat wave is coming, the concierge would inform you to bring your plants indoors. As well, the app sends recipes to give you ideas for what to cook from the crops of your garden. Through its coaching, Gardenuity hopes to make gardening a little more convenient. Letier said, “Everyone is busy, the one thing no one has figured out how to grow more of is time, but the desire for people to connect with nature continues to grow. Gardenuity can make everyone a modern-day gardener.”

As Gardenuity shows, gardening and technology are not mutually exclusive. Letier and Eggers collaborated with horticultural engineers and seed breeders to develop Gardenuity’s high quality products. They also partnered with technicians to construct their customized state-of-the-art technology. They are constantly in search of developing new ways to improve their products. The company truly lives up to its namesake of “gardening meets ingenuity.”

While gardening isn’t typically associated with R&D, Gardenuity clearly demonstrates that it developed its current models through a rigorous process of experimentation with software, horticultural engineering, and app development. Did you know this experimentation is eligible for the R&D Tax Credit? If you are also conducting similar trials, even for a company that isn’t explicitly “R&D”, you could be eligible for the R&D Tax Credit. To find out more, please contact a Swanson Reed R&D Specialist today.

Who We Are:

Swanson Reed is Texas’ largest Specialist R&D tax advisory firm, offering tax credibility assessments, claim preparation, and advisory services. We manage all facets of the R&D tax credit program in Texas, from claim prep & audit compliance to claim disputes.  

Swanson Reed regularly hosts free webinars and provides free IRS CE and CPE credits for CPA’s.  For more information please visit us at www.swansonreed.com/webinars or contact your usual Swanson Reed representative

New Jersey company revolutionizing farming

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In New Jersey, an innovative farming concept is completely converting traditional farming to become more sustainable and reliable.

According to the U.S Geological Survey, 70 percent of all consumed freshwater is used for agriculture and only half of this can be recycled. In addition, agriculture farming also consumes huge swaths of land and is greatly dependent on stable environmental conditions to grow high quality crops and produce.

AeroFarms is an innovative company, which believes it has a much better farming solution that will be more environmentally friendly and also provide a more stable farming environment. The company’s method requires no soil, sunlight, very little water and takes place indoors. In fact, any indoor location could be a possible fertile growing ground despite what the locations outdoor climate is.

AeroFarms stems from the initial concept of Professor Ed Harwood, who invented a new system for growing plants in a cloth material he created. There was no need for dirt use beneath the cloth and the plant roots were sprayed with nutrient-rich mist.

Harwood received a patent for his invention and founded Aero Farm Systems, which refers to ‘aeroponics’, meaning the method of growing plants without placing them in soil or water. However this company was purely a side project for Harwood and did not generate much revenue.

In 2011, David Rosenberg and Marc Oshima began exploring potential new methods to resolve the inefficiencies of traditional farming. They sensed an opportunity when coming across Aero Farm Systems and liked what Harwood had developed so much that they asked to come on-board as co-founders.

Rosenberg and Oshima proposed a change to the company’s business model and saw a bigger opportunity in optimizing the growing process and selling the crops themselves. From here the company became ‘AeroFarms’ and began to open facilities in New Jersey which consisted of a steel mill, a club and a paint ball center and began converting them into indoor farms.

Today, the farms grow and sell a large amount of produce to grocers such as, Whole Foods, ShopRite and Fresh Direct, as well as to dining halls at businesses like Goldman Sachs and the New York Times.

As the company is easily able to set up centers close to their customers and are not affected by external environmental conditions, they are able to ensure local and fresh growing all year round. As transport is therefore reduced, costs for the fresh produce are able to be kept to a minimum.

Through research and development carried out, AeroFarms can collect hundreds of thousands of data points at each facility, allowing altering of LED lighting to control taste, texture, color and nutrition. Additionally, the data also helps the company adjust variables like temperature and humidity to optimize its crop yields.

AeroFarms has proven to be 130 times more productive per square foot annually than a field farm. An AeroFarm also uses 95 percent less water than a field farm, 40 percent less fertilizer than traditional farming and no pesticides.

Leafy greens make up most of the company’s output and would traditionally take 30-45 days to grow, however with the AeroFarm method it can take as little as 12 days.

New Jersey’s new AeroFarm headquarters in Newark will be the world’s most productive indoor farm by output once it reaches full capacity. The farm consists of a dedicated R&D center, plant scientists, microbiologists, mechanical engineers and electrical engineers.

AeroFarms do still have some hurdles to overcome before it can claim to be a practical solution for replacing all the world’s farms. One significant problem is the large amount of electricity required, which is costly and also offsets much of the good done by preserving water due to the large carbon footprint it creates. Never the less, AeroFarms is working hard to address such problems and is optimistic about research findings into more energy efficient strategies.

To date AeroFarms employs 120 people across nine farms and plans to reach 25 farms within the next five years. The company has raised more the $100 million and continues to develop and spread its concept worldwide. Oshima says, “From day one, this has been about having an impact around the world,” and this is precisely what the company will continue striving to achieve.

New Jersey has several R&D tax credits available for certain qualifying R&D activities. If your company is engaging in R&D, it may qualify. Contact a Swanson Reed R&D Tax Adviser today to receive an assessment and discuss your R&D incentive eligibility.

Hawaii’s Emerging Agriculture Technology Industry

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The farming industry in Hawaii is turning to all things tech.

“We’re seeing robots that can plant, water and seed a 10-by-10 plot, pick strawberries and shake mac nut trees. There are infrared sensors to show you how hot the plants are and how much water they need, and drones that can fertilize in perfect amounts,” says Cole Santos, co-founder of Maui Makers.

AgFunder, an online marketplace in ag company ventures, says investment in agriculture technology companies reached $4.6 billion in 2015, double the previous year.

The majority of technology-driven innovation targets valuable large-scale agribusinesses, primarily in the Midwest and along the West Coast, but things are different in Hawaii. The local farming scene is in transition, resulting in a slower adoption of new technologies and processes, says Joshua Uyehara, president of the Kekaha Agriculture Association board of directors.

“As the plantations have gone away, there’s been a void. It’s been a struggle to figure out our agriculture industry. As tech and ag progress in the world around us, we need to figure out how to step back into an industry that hasn’t been standing still. How do we jump back on the treadmill?”

There is a growing community focused on developing innovative solutions for smaller farms that also address Hawaii’s clean energy and food security goals. Among those active in the area are the state’s Energy Excelerator, Blue Startups, XLR8UH and Ulupono Initiative.

“Energy and agriculture are Hawaii’s two biggest advantages as well as our two biggest pain points,” says Tarik Sultan, managing partner at XLR8UH. “We need energy innovation because we’re paying four times more than everyone else. We need agricultural innovation because we have limited lands and resources. In the case of a catastrophic event, Hawaii wouldn’t last two weeks.”

Hawaii offers a tax credit to local companies performing any type of research and development. Thus, the farming companies turning to technology and innovative solutions would receive a credit from the government for doing so. To find out more about the federal and state R&D tax credit, contact one of our specialists by clicking here.

Crickets: The Gateway Bug to Eating Insects

Fried, baked, stewed, or even milled into a protein powder to be used in your smoothie – Crickets are dubbed to be the new ‘superfood’ of 2016. From ancient quinoa grains sourced from Peru to the Amazonian acai berry found in Brazil – most superfoods are found in exotic locations, rather than on a leaf in your backyard. With the increasing need to feed more people and the intensified desire for more sustainable food options, could crickets be replacing our tradition-bound Christmas turkey this year?

green-769946_960_720Whilst eating insects remains an oddity in the United States, Blueshift Research’s March 2015 Trend Tracker found that one-third of respondents were likely to buy an insect-based product. Moreover, insects are actually a consistent portion of the diet for more than two billion people around the world, according to a 2013 report from the Food and Agriculture Organization (FAO) of The United Nations. The report highlights the benefits of edible insects and how they can combat problems such as “the rising cost of animal protein, food and feed insecurity, environmental pressures, population growth and increasing demand for protein among the middle classes.”

Furthermore, earlier this year the US Department of Agriculture (USDA) funded research into insect farming for human food, with the aim of discovering innovative ways to augment cricket growth while decreasing the price of raising them. Whilst the research is still be undertaken, previous studies reveal that crickets’ potential role in future diets is somewhat compelled by the fact that they need ten times less feed than cattle while producing a similar amount of protein and less fat. Further evidence reveals crickets contain as much calcium as milk and is high in vitamin D, B1, B2 and B6, as well as phosphorus, iron, calcium, zinc, copper and manganese.

In fact, in Houston, pan-sautéed grasshoppers are already on the menu at Hugo’s, whereas mini grasshoppers can be found at the Cuchara bistro at Fairview and Taft. Of course, crickets aren’t the only insect selection. The daring connoisseur can go online to buy chocolate-covered scorpions, superworms, silkworms, and more through U.S. distributors.

After all, the planet is expected to have nine billion people by 2050, thus growing enough food to feed everyone requires that we create more efficient and sustainable ways to produce food. Whether your preference is researching ways to increase cricket growth for human consumption or seeking to create new farming techniques for more traditional forms of protein – research such as this is important in an increasingly environmentally aware society. Research and development (R&D) can aid your company in remaining relevant in a progressively technological, innovative and competitive world. Moreover, if you are conducting eligible R&D activities, you may be able to claim generous tax savings back on your investment. Swanson Reed offers professional proficiency across a range of industries and has supported many clients achieve tax cash savings under the R&D tax credit regime. Contact one of our specialist R&D Tax consultants to find out more about the scheme and if you are eligible.

Thanksgiving Special: Research Reveals Human’s Saved the Pumpkin from Extinction

This thanksgiving, as you take a sip from your pumpkin spice latte or indulge in a bite of pumpkin pie, satiated feasters should take a second to give thanks to the idiosyncrasy of history that kept squash in our pies, on our plates, and flavoring our drinks. In fact, if megafauna—mastodons, mammoths, giant sloths and the like—had not become extinct than none of these seasonal delights would have been conceivable, according to an international team of anthropologists.

A new study, undertaken by researchers at Penn State University and published last week in Proceedings of the National Academy of Sciences, says the thanksgiving staples we consume are distant survivors of ancient fruits that sidestepped extinction only because they were domesticated by humans. The study focuses on a 10,000-year history that connects humans to the rise of the pumpkin and the fall of the mammoth.

pumpkins-984207_640To clarify, the researchers found that originally humans did not consume the genus Cucurbita—i.e., pumpkins, squash, and gourds—since it was bitter and toxic to humans and smaller animals. However, mastodons and other large herbivores, would eat these wild fruits and then discard the seeds through the terrestrial in their droppings. Thus, new squash and gourd plants would propagate, the megafauna would eat the fruit, and the entire cycle would endure. However, when humans arrived in America between 13,500 and 14,500 years ago, overhunting, along with a shifting climate, eliminated giant sloths and their kin. Hence, without human intervention, our cherished fall pumpkin treats would have gone with them.

According to the researchers’ examination, throughout this time humans also began domesticating the gourds. At that phase, they were fond of the gourds due to their resilient rinds—utilizing them as containers for food and drink or floating fish nets. Although, as farming technology progressed, scientists believe that over time humans began eating the fruit and replanting the ones that were most appetizing. Ultimately, over thousands of years, the pumpkin evolved to become mild and tasty — and now icons of the fall season.

Therefore, this thanksgiving, after goring on the onslaught of pumpkin spice foods that appears every fall, take comfort in the fact that thanks to research and our ancient ancestors—we humans can claim to be the saviours of the gourd. A noble act indeed.

In light of the study above, has your business undertaken any research? If so, the Research and Development (R&D) Tax Credit scheme is one way to reduce the cost incurred by companies that are undertaking research and development activities. Contact us today to talk to a specialized R&D Tax professional who will be able to help you with any queries you may have.

How to Determine Your Eligibility for R&D Tax Credit

There is a common misconception that only companies and enterprises engaged in manufacturing and processing, or healthcare and the health sciences, can benefit from research & development tax credits.

History has shown that companies from a variety of industries can take advantage of R&D tax credits as long as they have proven to have engaged in approved research and development activities and have incurred qualified research expenses (QRE).

While companies in the manufacturing and processing industry have traditionally been able to benefit more from tax credits on their research & development activities, more and more enterprises in different industries, such as oil and gas, healthcare, IT, and agriculture and farming have been able to claim tax credits in recent years.

Take, for instance, the agricultural and farming industry. If you have an enterprise which falls under this sector, you can apply for tax credit if you engage in research and development activities with an aim to make your business grow and improve its products and services. So how do you know if you qualify? A simple four-part test will tell you.

How to determine your eligibility for research & development tax credit

  1. If you have done or are doing research with an aim to create or develop a product, technique, process, invention, or formula that will improve reliability, cost, functionality, or performance, then you may qualify for R&D tax credit. For example: if you are in the midst of developing a more effective harvesting system for your crops by creating a new and improved machine, or if you are trying to enhance your field irrigation system, then this can be classified as research done to improve a process and technique.
  2. If you are engaged in research activities which have a technological nature, then you may also be eligible. This means that you are doing research which makes use of the hard sciences (mathematics, physics, biology, etc.) rather than the soft sciences, such as humanities or the social sciences.
  3. If your research activities are done in order to eliminate any technical uncertainties, then this also makes you eligible for R&D tax credit.
  4. If your research activities are done following a set experimentation process, with theories and testing, for instance, then this adds to your eligibility for tax credit.

Keep in mind, though, that your enterprise needs to pass these four criteria, and not just one or two.
Once you have determined that you pass all the requirements that constitute qualified research, then you can move on to the next step: calculating your credit.

It is also important to remember that R&D tax credit is different for each state. The details and requirements for a state like Texas, for example, are different from other states like California, which also has a robust farming and agricultural industry. You can determine your eligibility and what you can expect with R&D tax credit by consulting a research & development tax specialist.

With expert help, the entire process of determining, computing, and filing for research & development tax credit and incentives is made much simpler – and a lot more effective and hassle-free than before.