Conversely, I wonder if the viability changes if urban areas would subsidize the underlying (most likely expensive) land costs for vertical farming, due to food being required to survive.
Well, the viability of living in urban areas would certainly change if another land use competing with housing and existing commercial uses was subsidized by taxing existing residents.
i.e., it would drive already high urban real estate prices higher, by competing with existing urban real estate uses, while not being cost effective, because increased output per square foot of land footprint would be offset by the higher cost per square foot of land footprint of urban land.
It seems like the kind of thing that makes a lot of sense in places that have very limited access to land with inexpensive shipping costs to populated areas like densely populated islands, but a lot less economic sense in most of the rest of the world.
Could bury these things under drive ways, under lawns, garages, decks, pools, etc.
Aye, and if my grandmother had wheels, she'd be a wagon. -- Capt. Montgomery "Scotty" Scott
Not to say that vertical farming is cost-free; it's most definitely not. It does avoid (edit: or at least reduce) that major (hidden) cost, though.
Urban areas are valuable. People in cities have less environmental impact than people spread out. The people displaced by an urban farm don't disappear -- they either stay out of the city or go to another city.
Does it? By competing with existing urban land uses, if adopted any substantial scale it forces the existing uses to spread out over larger areas, increasing the energy costs of transportation associated with those uses, while also creating a major new demand for energy in food production which replaces some of the use of energy in food transportation.
Seems to me your are shifting around the fossil-fuel related energy use externalities, but I haven't seen any analysis showing it to be a net win even in that narrow regard.
Growing hydroponically also reduces crop loss from about 50% down to about 10-15%.
Anecdote: I heard that peaches were grown in Greenhouses to avoid rot & bugs and it's been very helpful.
But there's also the required energy:
"just to meet a year's U.S. wheat production with vertical farming would, for lighting alone, require EIGHT TIMES as much electricity as all U.S. utilities generate in an entire year"
Additionally, not all vertical farming relies on artificial lighting.
But without cheap, abundant, clean power to replace the way traditional farming uses the sun, vertical farming is either not going to be economically viable on a large scale, or is going to be trading one set of negative externalities for another (traditional farming's externalities from runoff, etc., for the externalities from the power production for vertical farming), or both.
I don't think people realise how low farm-gate prices for commodity foods are.
Additionally, it seems like you are writing off the idea because "Commodity crops and animal agriculture are the biggest resource users in this system and vertical farming is no where close to finding a substitute for those"
Vertical farming isn't going to just poof magically fix everything. It's meant as a supplement to an unhealthy food system.
And I think the cost of production will come down.