{"id":1334544,"date":"2023-11-16T09:45:00","date_gmt":"2023-11-16T09:45:00","guid":{"rendered":"https:\/\/grist.org\/?p=622844"},"modified":"2023-11-16T09:45:00","modified_gmt":"2023-11-16T09:45:00","slug":"a-celebrated-startup-promised-kentuckians-green-jobs-it-gave-them-a-grueling-hell-on-earth","status":"publish","type":"post","link":"https:\/\/radiofree.asia\/2023\/11\/16\/a-celebrated-startup-promised-kentuckians-green-jobs-it-gave-them-a-grueling-hell-on-earth\/","title":{"rendered":"A celebrated startup promised Kentuckians green jobs. It gave them a \u2018grueling hell on earth.\u2019"},"content":{"rendered":"\n

This story was produced by Grist and co-published with the <\/em>Kentucky Center for Investigative Reporting<\/em><\/a>.<\/em><\/p>\n\n\n\n

The workers had spent the morning of November 8, 2021, clipping, trussing, and trellising hundreds of thousands of tomato plants that twisted almost four stories into the air. They were inside one of the world\u2019s largest high-tech greenhouses, which sits on more than 60 acres of a former cattle field in Morehead, Kentucky.<\/p>\n\n\n\n

As one of the greenhouse workers, who I\u2019ll call Nora, sat down for lunch in the worker canteen, she heard her colleagues whisper about their new task for the day. U.S. Senator Mitch McConnell would be visiting that afternoon to give a speech praising the greenhouse company, AppHarvest. Before he arrived, management had to make sure their Spanish-speaking colleagues disappeared.<\/p>\n\n\n\n

\u201cWe had very little time,\u201d recalled Nora, whose real name is being withheld because she is subject to a nondisclosure agreement. \u201cWe had to get them off the premises and away before he got there.\u201d<\/p>\n\n\n\n

Nora watched her coworkers get dismissed, grab their stuff, and leave on white buses bound for a trio of small motels where the largely Mexican contract workers lived four or five to a room. When McConnell arrived, Nora joined her remaining, mostly-white colleagues on the sunny lawn. Their clean T-shirts advertised AppHarvest\u2019s name and logo, intended to invoke both the Appalachian region where they worked and the iconic branding of Apple \u2014 Silicon Valley by way of the Middle American upstart. <\/p>\n\n\n\n

\u201cWe all know the decline of the coal industry only got worse, and so this [AppHarvest] gives us hope,\u201d the senator said, praising the local labor force encircling him. \u201cYou are the real leaders, I think, in beginning to fully develop all of Kentucky\u2019s potential.\u201d<\/p>\n\n\n\n

It was a familiar message, one that had been touted over and over in nationally televised interviews, public filings, and company reports by AppHarvest\u2019s then-CEO, a Kentucky native and entrepreneur named Jonathan Webb. In 2018, the 32-year-old Webb returned home with the promise of building a dozen high-tech, hydroponic indoor farms across Eastern Kentucky and the surrounding region, growing tomatoes, cucumbers, berries, and lettuce. Not only would he be piloting an advanced form of climate-resilient agriculture, he would also be generating gainful, blue-collar employment in some of the country\u2019s most economically-distressed counties, where he argued that the coal industry\u2019s downfall<\/a> left a void that could be filled by sustainable industry.<\/p>\n\n\n\n

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Workers would start at $13 an hour, with hefty productivity bonuses and a track to internal promotions. Then there were the perks: 100 percent employer-paid health insurance premiums for both employees and their families, monthly boxes of farm-fresh produce, and stock options once the company went public. In a region terrorized by the opioid epidemic, AppHarvest also offered jobs to formerly incarcerated people in recovery from addiction.<\/p>\n\n\n\n

Webb\u2019s worker-centric pitch raised over $700 million for AppHarvest to get off the ground and catapulted him into the national spotlight, with largely glowing coverage from The Wall Street Journal, The New York Times, CNN, and Forbes. It also convinced a number of big names to join the company\u2019s board: Martha Stewart, activist investor Jeffrey Ubben<\/a>, former Impossible Foods CFO David Lee, and J.D. Vance, the venture capitalist and Hillbilly Elegy <\/em>author who would later win election to a U.S. Senate seat in Ohio with a Trump-inspired, anti-immigrant message.<\/p>\n\n\n\n

McConnell\u2019s speech in Morehead highlighted another major theme in AppHarvest\u2019s advertising: replacing what Webb has called \u201cdirty\u201d agricultural imports from Mexico with safe, nutritious berries, lettuce, and tomatoes from central Appalachia.<\/p>\n\n\n\n

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Lettuce grows in AppHarvests\u2019s Berea greenhouse.\n Courtesy of AppHarvest<\/cite><\/figcaption><\/div><\/figure>\n\n\n\n

Lettuce grows in AppHarvest’s greenhouse in Berea, Kentucky. Courtesy of AppHarvest<\/strong><\/p>\n<\/div>\n\n\n\n

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Lettuce grows in AppHarvests\u2019s Berea greenhouse.\n Courtesy of AppHarvest<\/cite><\/figcaption><\/div><\/figure>\n<\/div>\n<\/div>\n<\/div>\n\n\n\n

\u201cI like the idea of taking the tomato market away from the Mexicans,\u201d McConnell said that afternoon, according to an employee\u2019s video recording of the event. Some workers looked around in surprise. Others seated behind McConnell rocked nervously in chairs, trying to catch the eyes of friends on the lawn. Applause can be heard in the recording, but at least one employee booed. The moment felt rigid and frail, like a ship just beginning to sink below the sea. <\/p>\n\n\n\n

\u201cNo wonder they sent the f—ing contractors [home],\u201d one worker said, turning to a coworker off-camera.<\/p>\n\n\n\n

The discontent that day wasn\u2019t just about optics, or fairness to the contract workers. It was the culmination of a year of frustration with a company that had promised to deliver both Grade A tomatoes and fulfilling rural employment but was falling dramatically short on both counts. Even as Senator McConnell sang the company\u2019s praises, AppHarvest was already well on its way to a spectacular collapse, the full story of which has never been told until now. The celebrated startup\u2019s demise also highlights the dangers of expanding and relying on high-tech, indoor agricultural schemes that promise shortcuts to making farming more climate-friendly.<\/p>\n\n\n\n

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A worker in an AppHarvest-branded mask in a greenhouse in Morehead, Kentucky. Courtesy of AppHarvest<\/cite><\/figcaption><\/div><\/figure>\n\n\n\n

A year earlier, Nora had seen a billboard for AppHarvest on a state highway. She was hired after hearing a version of the company\u2019s pitch that promised a strict 40-hour week and the opportunity to advance \u2014 something she had rarely found in the service jobs she\u2019d worked since graduating high school. The promise was quickly broken: She was almost immediately told she needed to start working weekend overtime or her job would be in jeopardy. She found that her training in tomato caretaking \u2014 planting, pruning, harvesting \u2014 left much to be desired, and she and other workers were often confused over their job duties and requirements.<\/p>\n\n\n\n

By summer, the greenhouse began reaching dangerously high indoor temperatures, and Nora watched coworkers struggle with dehydration and heat exhaustion. Turnover spiked. Nora developed asthma and anxiety, but she stayed the course.<\/p>\n\n\n\n

That same summer, the company told investors that low productivity and high turnover at its Morehead greenhouse had led to a $32 million net loss. Stockholders then filed the first of five lawsuits<\/a> alleging securities fraud, noting that AppHarvest\u2019s own leadership had repeatedly cited \u201cemployee training, turnover, and poor work ethic\u201d as the root causes of the company\u2019s failure to reach profitability.<\/p>\n\n\n\n

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An AppHarvest employee walks between rows of tomatoes in the company’s Morehead greenhouse. Courtesy of AppHarvest<\/cite><\/figcaption><\/div><\/figure>\n\n\n\n

As workers soldiered on over the next two years, AppHarvest\u2019s financial position continued to decline. This summer, lenders started demanding repayment of <\/em><\/strong>$182 million. Soon after, Webb was out as CEO, and AppHarvest declared Chapter 11 bankruptcy. Bankruptcy filings show that the company owes over $1.4 million to at least three agricultural work placement agencies that help farms fill temporary agricultural jobs with foreign nationals. In September, Webb was fired<\/a> from the company altogether. All of AppHarvest\u2019s five facilities in Kentucky \u2014 two in Morehead, and one each in Berea, Richmond, and Somerset \u2014 are now in the hands of new owners. (In response to a detailed list of questions for this story, AppHarvest\u2019s chief legal officer, Gary Broadbent, said that the company has no continuing operations and was not in a position to respond.)<\/p>\n\n\n\n

A new investigation from Grist finds that what went on inside the company from its earliest days bore little resemblance to the sustainable, worker-friendly operation that Webb publicly touted. State documents obtained through open records requests, including complaints to Kentucky\u2019s Occupational Safety and Health Committee, as well as interviews with 12 former employees from both the flagship Morehead greenhouse and corporate office, reveal issues widespread across AppHarvest’s operations. They expose how unsafe working conditions, negligible training that failed to prepare workers for their job requirements, and an unprofessional workplace doomed the company nearly from the start. <\/p>\n\n\n\n

Editor\u2019s note: Due to fear of legal reprisal from AppHarvest, all but three former employees interviewed for this story \u2014 including Nora, whose name is a pseudonym \u2014 requested anonymity to speak candidly about their experiences; AppHarvest employees signed nondisclosure agreements upon their hire, which have no termination date in the state of Kentucky.<\/em><\/p>\n\n\n\n

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Lights glow through the exterior of AppHarvest\u2019s Somerset greenhouse. Courtesy of AppHarvest<\/cite><\/figcaption><\/div><\/figure>\n\n\n\n

Inside the Morehead greenhouse, the heat index could spike to 155 degrees Fahrenheit, according to worker interviews, leading to dehydration, heat exhaustion, and medical emergencies. The stress of the work environment led to panic attacks, ideation of personal harm, and relapses into addiction. Less than a year after the first seeds had been planted, benefits like employer-paid health insurance ended, company stocks plummeted, harvests failed to yield sufficient Grade A produce, and AppHarvest pivoted from uplifting Appalachia\u2019s blue-collar workforce to bussing in workers<\/a> from outside the region.<\/p>\n\n\n\n

\u201cMy whole view of AppHarvest was we were all sold on this beautiful pipe dream,\u201d one corporate worker told Grist. \u201cThis is sustainable, this is new, we\u2019re going to make it. It turned out to just be a f—ing nightmare.\u201d<\/p>\n\n\n\n

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Webb claims a connection to Eastern Kentucky through his ancestors: His great-grandfather died in a coal mining accident in Whitley County, where he says his grandmother grew up on a dirt floor. After graduation from the University of Kentucky\u2019s business school, Webb moved to Washington, D.C., where he worked as a contractor on renewable energy projects under the U.S. Army Office of Energy Initiatives. Then, he read about controlled environment agriculture, or CEA, in a 2017 National Geographic story<\/a>.<\/p>\n\n\n\n

He quickly decided CEA could be as important a climate solution as renewable energy or electric cars \u2014 and as good an investment. CEA proponents argue both that farming needs to become less climate-dependent in a warming world and<\/em> that its land footprint needs to shrink dramatically if the world hopes to preserve biodiversity and carbon sinks like forests. Indoor facilities outfitted with careful climate controls could theoretically accomplish this. For inspiration, Webb looked to the Netherlands<\/a>, where high-tech greenhouses successfully grow produce for export year-round, on a total acreage that\u2019s only twice the size of Manhattan. Without any prior professional experience in farming, he quit his job and founded AppHarvest the next year.<\/p>\n\n\n\n

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Jonathan Webb, founder and CEO of AppHarvest, speaks onstage during the Concordia Lexington Summit in April 2022. Jon Cherry \/ Getty Images for Concordia Summit<\/cite><\/figcaption><\/div><\/figure>\n\n\n\n

Webb was hardly alone in his bullishness on CEA. Congress\u2019 2018 Farm Bill<\/a>, which expired earlier this year, expanded support of CEA research and development to mitigate food system risks, creating a federal Office of Urban Agriculture and Innovative Production and distributing over $40 million<\/a> in grants between 2020 and 2022. Over the last decade, the sustainability argument for CEA has helped the sector raise billions of dollars in private investments for a variety of startups. <\/p>\n\n\n\n

Unlike in the Netherlands, where indoor farmers have learned best practices over half a century<\/a> of trial and error, American startups like AppHarvest have overwhelmingly failed<\/a> to turn a profit, or even break even. The crux of the problem is that roughly 75 percent of the industry\u2019s costs stem from labor and energy. And while traditional agriculture works because it takes advantage of natural conditions, CEA has to artificially produce optimal growing conditions and power them with electricity. In a world still largely powered by commodified fossil fuels \u2014 nearly 70 percent<\/a> of Kentucky\u2019s grid remains coal-fired \u2014 that\u2019s going to be prohibitively expensive in most places. <\/p>\n\n\n\n

\u201cIt\u2019s the fundamental physics challenge of turning fossil fuel energy into food,\u201d said Bruce Bugbee, a plant scientist at Utah State University.<\/p>\n\n\n\n

Even as the U.S. CEA market is predicted to be worth $3 billion<\/a> by 2024, the high costs of running these facilities have accumulated quickly, leading to a domino of bankruptcies and closures over the last two years. Fifth Season, a Pennsylvania-based indoor farm that raised $35 million<\/a> to sell salad kits in over 1,200 stores, closed without any warning<\/a> a year ago, turning off its electricity and leaving its lettuce plants to die. In April, the Florida-based Kalera, which raised $100 million<\/a> and became the first publicly-listed vertical farm in the U.S., filed for Chapter 11 bankruptcy. Then, in June, even 19-year-old AeroFarms, which had raised hundreds of millions of dollars<\/a>, filed for bankruptcy, though it claims it will continue some operations while restructuring the business. <\/p>\n\n\n

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\u201cPeople with billions of dollars became aware of this industry and they think it\u2019s the wave of the future,\u201d said Bugbee, \u201cbut it doesn\u2019t mean there\u2019s been a scientific shift. It staggers me how much money they\u2019re putting in.\u201d<\/p>\n\n\n\n

Without a viable solution to CEA\u2019s fundamental energy dilemma, AppHarvest took increasingly desperate measures to wring profits out of the problem that has plagued agriculture for as long as humans have been farming: labor.<\/p>\n\n\n\n

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By the time she turned 30, Ahna Baxter\u2019s life had long been dictated by the demanding hours and low wages of jobs in restaurants and factories. But a temporary gig at a vineyard near her hometown of Frankfort, Kentucky, gave her a glimpse of something different. She learned to press grapes into wine; she grew cucumbers and cantaloupe and admired the sunflowers that waved above her head. For the next few years, she dreamt of starting a small farm of her own.<\/p>\n\n\n\n

That dream dried up just before the COVID-19 lockdowns. Baxter had just lost both a friend and family member to suicide, and she became dependent on her prescription Adderall to get through the day and alcohol to sleep at night. She abandoned her fledgling agricultural business, Ahna\u2019s All Naturals, and checked into a 30-day rehab program.<\/p>\n\n\n\n

As Baxter got back on her feet after rehab, she found comfort returning from work every day in time to tune into Governor Andy Beshear\u2019s evening updates. The televised talks were like Mister Rogers for adults<\/a>: a familiar voice for Kentuckians dealing with the confusion, loneliness, and grief brought by the pandemic, not to mention everything else Baxter had just been through.<\/p>\n\n\n\n

In the summer of 2020, Beshear announced something that revived Baxter\u2019s hope in a future tied to the land: AppHarvest, a nascent company turning heads with its promise of cutting-edge agritech, was hiring in Eastern Kentucky. The startup was offering the highest wage she\u2019d ever made, opportunities for promotions, and training in agriculture. Baxter immediately went online and applied.<\/p>\n\n\n\n

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Employee badges hang on a wall near AppHarvest’s West greenhouse on June 14, 2021, in Morehead, Kentucky. Jon Cherry<\/cite><\/figcaption><\/div><\/figure>\n\n\n\n

About a month later, she got a phone call from AppHarvest and met the hiring managers in Morehead. The interview was unlike any she\u2019d had before. Instead of pressing her on why she would be a good fit for the position, AppHarvest seemed to be selling its vision to her. She thought this overt enthusiasm, coupled with a lack of clarity on basic job duties, was odd, but the opportunity was just too good to pass up. She quit her job as a landscape foreman, sold most of her belongings, and moved her RV to a friend\u2019s backyard for her first month of employment before renting a trailer in the Cave Run Mobile Home Park in Morehead during the fall of 2020. After battling addiction, Baxter thought this clean break could help make a better life for herself and her then-16-year-old son, Eli, whom she\u2019d had at 17.<\/p>\n\n\n\n

\u201cI sacrificed a lot, but I felt that this was it,\u201d Baxter told me. \u201cI felt like this was the end all be all. This is the company I’m going to be with forever.\u201d<\/p>\n\n\n\n

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During orientation \u2014 a pep rally-style event with loud country music, cheering employees, and team-building games that lasted roughly a week \u2014 employees watched the David Attenborough documentary A Life on Our Planet<\/em>. They learned that while traditional agriculture leaves soils depleted, their work growing produce indoors could save the food system. But the intricacies of working with tomato plants were largely glossed over during orientation, according to worker interviews. While some managers had formerly worked in indoor agriculture, most workers were new to the industry. Nora, who applied around the same time as Baxter after seeing an AppHarvest billboard go up in Morehead, recalled her husband was suspicious.<\/p>\n\n\n\n

\u201cHe thought it was a bad idea from the get go,\u201d said Nora. \u201cI fed him the same lines they fed me: It\u2019s a start up, it takes time working out the kinks.\u201d Her husband replied that AppHarvest was either the greatest job ever, or it was going to be the greatest con.<\/p>\n\n\n\n

But the company culture was contagious. When Nora and Baxter finally started working as clippers \u2014 attaching tomato vines to plastic hooks that hung from the ceiling \u2014 they were so excited that they often skipped between the rows of plants. Nora told herself she was making a difference.<\/p>\n\n\n\n

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An employee gestures among the rows of tomato plants and yellow adhesive bands, used to catch flying insects, in AppHarvest’s West greenhouse on June 14, 2021. Jon Cherry<\/cite><\/figcaption><\/div><\/figure>\n\n\n\n

Then, within weeks of the Morehead greenhouse opening in November of 2020, Nora and her colleagues were told they needed to work overtime. <\/p>\n\n\n\n

\u201cTen minutes before the end of the shift they\u2019d come over and say, \u2018Due to a lack of attendance we\u2019re doing work continuance until it\u2019s done,\u2019\u201d Nora remembered. \u201cSo either you stay and work, or lose your job. You\u2019d be so worn out and overheated and dehydrated you\u2019d do anything they\u2019d want you to do.\u201d<\/p>\n\n\n\n

An internal memo circulated to all Morehead employees the following spring confirms the policy. \u201cAt any given time an emergency could require immediate mandatory Overtime,\u201d the document read, while attempting to maintain a sunny tone: \u201cWorking in a greenhouse has its challenges and one of them is keeping our Plants Happy<\/em><\/strong>!\u201d Nora said that when she complained, her supervisor told her that she \u201cneeded to learn to sacrifice.\u201d<\/p>\n\n\n\n

But no amount of overtime could compensate for their light-touch training and resulting confusion over how exactly to truss, de-leaf, and prune the hundreds of thousands plants in the greenhouse. Plant diseases took hold. Tomatoes started rotting, resulting in almost 50 percent wasted product, according to the securities fraud<\/a> suit. The bonuses workers were promised felt impossible to earn. Turnover spiked.<\/p>\n\n\n\n

\u201cThey took people who had never done this before, threw them in a greenhouse, gave us minimal training on how to do it, and expected us to produce Grade A tomatoes when all we\u2019d done was backyard farming,\u201d said Nora. \u201cNo one was ever on the same page. No one in any greenhouse used the same techniques, and I think that was 90 percent of their quality issue.\u201d <\/p>\n\n\n\n

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AppHarvest employees walk in the West greenhouse in Morehead on June 15, 2021. Jon Cherry<\/cite><\/figcaption><\/div><\/figure>\n\n\n\n

While AppHarvest\u2019s failings were becoming clear to its workers even in its early months, Webb and other company leaders were still raising money. After 12 rounds of funding, AppHarvest had secured almost $800 million<\/a> from funders like the U.S. Department of Agriculture and Rise of the Rest, a D.C.-based seed capital firm focused on Middle American startups. By early 2021, it became the first controlled environment agriculture company in the United States to go public, at $35.69 per share<\/a>. Webb personally got a $1.5 million bonus<\/a> for the stock listing and $31 million in stock awards. The company\u2019s initial valuation of $1 billion soon grew to $3.7 billion.<\/p>\n\n\n\n

One afternoon during the first summer of AppHarvest\u2019s operation, then-55-year-old Janet Moore threw up at least three times from heat exhaustion in the bathroom outside the greenhouse. Other workers recalled seeing coworkers pass out from heat and leave on steel trolleys \u2014 or, sometimes, in ambulances.<\/p>\n\n\n\n

Though the position was a financial improvement on the $7 an hour Moore once made working on a tobacco farm, the heat inside the greenhouse turned out to be far worse than an outdoor farm. One worker called it \u201can absolute grueling hell on earth.\u201d Workers were only allowed to leave the greenhouse if the heat index reached 140 degrees Fahrenheit, according to a worker who helped those suffering from heat exhaustion. Another worker said thermometers were covered in gray trash bags or moved to poles where workers couldn\u2019t see a heat index that the medical assistant said once peaked at 155 degrees Fahrenheit. Once the company began having productivity challenges, it seemed like no temperature was high enough to relieve workers of their greenhouse shifts; according to worker interviews, managers would simply alternate workers in 30-minute increments between the greenhouse and the air-conditioned packhouse.<\/p>\n\n\n

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Starting as early as August 2020, during construction of the Morehead greenhouse, workers filed eight complaints to the Kentucky Education and Labor Cabinet for Occupational Safety and Health. Almost half of those complaints, revealed for the first time in an open records request received by Grist, concerned the heat in the Morehead greenhouse and a second AppHarvest greenhouse in Berea, a town about 80 miles southwest. In July 2021, one complaint said workers were laboring in a heat index ranging from 115 to 136 degrees Fahrenheit.<\/p>\n\n\n\n

\u201cFor the past few days no one has taken any temperatures,\u201d the labor filing reads, adding that the company doesn\u2019t allow workers to go home early, even though they work in direct sunlight and several suffered heat exhaustion. (While no federal heat standard exists for workers, a heat index \u2014 what the air feels like when combining relative humidity and air temperature \u2014 above 103 degrees Fahrenheit presents \u201cdanger,\u201d<\/a> according to the National Weather Service, while anything over 126 degrees Fahrenheit indicates \u201cextreme danger.\u201d)<\/p>\n\n\n\n

At the Berea farm, a July 2022 complaint said that even on high-humidity, nearly 100-degree days, potable water was only available to production workers if they walked eight minutes to an administrative trailer they could only access during breaks. And because non-potable water wasn\u2019t labeled as such, desperate employees had drawn unsafe drinking water into their bottles when safe drinking water was unavailable. <\/p>\n\n\n\n

Other safety concerns detailed in the complaints included the sudden onset of nausea, and on two occasions vomiting, when the plants were sprayed with \u201csomething unsafe.\u201d Two more complaints said tearing out mold, dust, and insulation from walls caused eye and lung irritation. Employees reported that they didn\u2019t receive respirators, and during the tear-out one team member went to the hospital for breathing issues, according to the complaints. <\/p>\n\n\n\n

Another said guide wires holding tomatoes were snapping from the weight of the fruit. \u201cIf someone is working the rows and the wire snaps, over 500 tomato plants will fall on whomever is in the [row],\u201d the complainant told the state safety office. In a separate filing, an employee said guide wires broke over three days in February 2023, and that as wires fell there was the possibility of \u201ctaking someone\u2019s head off and\/or extremely hurting their bodies.\u201d <\/p>\n\n\n\n

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An employee stands among the tomato vines in AppHarvest’s West greenhouse on June 15, 2021. Jon Cherry<\/cite><\/figcaption><\/div><\/figure>\n\n\n\n

Moore thinks that the repetitive motion of caring for the tomatoes \u2014 removing suckers, topping plants, ripping leaves off the bottom stems \u2014 led to carpal tunnel in her hands, both of which required surgery. She said her job was threatened if she felt sick from the heat or had to go to a doctor’s appointment for her hands. Moore and other workers also complained of rashes from the heat, plant matter, and gas agents sprayed to quickly ripen the tomatoes. Baxter, in recovery from addiction, relapsed when she drank a beer at a company field party that offered free drink tickets to workers.<\/p>\n\n\n\n

While AppHarvest appeared to shrug off worker complaints in its early days, it publicized employees who represented the values that had earned it the label of a certified B Corp \u2014 intended for businesses with high standards of performance, accountability, and transparency, especially when it comes to employee benefits \u2014 as well as its designation as a public benefit corporation created to generate social good responsibly and sustainably. Erin Mays, who applied for her job at AppHarvest from the Rowan County Detention Center in February 2021, where she was serving her 10th sentence for drug possession charges, was perfect for the role: She was petite but strong, and she quickly took on the task of lowering plants, a job otherwise done mostly by men.<\/p>\n\n\n\n

From the start, Mays was infatuated with AppHarvest; she appeared on the company\u2019s Instagram as a \u201cdedicated team member<\/a>.\u201d She told her family and friends to buy stock in the company, convinced it was the future for her region. Mays also met her now-spouse on the job, and the two were often asked to speak to greenhouse guests.<\/p>\n\n\n\n

\u201cWe were used as poster kids,\u201d Mays said. \u201cIf there were photo ops or people came in, I feel like they would start to use me or Leo because we were big members of recovery in our community. We were outspoken and well spoken.\u201d <\/p>\n\n\n\n

But a couple months into the job, Mays relapsed on Suboxone, a medication for opioid use disorder, which if misused can lead to dependency, addiction, or overdose. She remembered that her hiring packet said she could go to treatment and still keep her job. When she asked human resources, however, they said that if she left for rehab, they couldn\u2019t guarantee her job would be waiting for her. And even if a job was available, she remembers being told, she wouldn\u2019t be eligible for six months.<\/p>\n\n\n\n

Mays didn\u2019t want to lose her position, so she used over-the-counter pain relievers to work straight through a month of low-grade withdrawals while continuing her highly physical, monotonous tasks in the scorching greenhouse.<\/p>\n\n\n\n

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An employee looks out over rows of tomato plants from the top of a lift in AppHarvest’s West greenhouse. Jon Cherry<\/cite><\/figcaption><\/div><\/figure>\n\n\n\n

While standing at the top of her cart to lift and lower plants, which could rise up to 20 feet off the ground, she suffered aches and body chills. She would rush to the bathroom with a bout of diarrhea or to throw up. Because she was on the far west end of the facility, the closest bathroom was a porta potty, and Mays would have to be really sure she had to use it before she left \u2014 her bathroom breaks were monitored, and she didn\u2019t want to get written up. <\/p>\n\n\n\n

Workers said their jobs were at times so difficult and poorly managed that even physically fit and healthy employees could snap. One morning in August 2021 \u2014 the very same day that Webb admitted to investors that AppHarvest was staring down a $32 million net loss \u2014 Baxter arrived at work to find that she was in charge of more workers without additional assistance. The outside temperature was hovering in the 80s, she said, but the heat index in the greenhouse was 40 degrees higher, around 120 degrees Fahrenheit. She brought in five water bottles she\u2019d frozen the night before to stay hydrated, along with the inhaler she kept in her locker in case of an asthma attack. <\/p>\n\n\n\n

She was irritated, and her manager seemed on edge. He told Baxter to make her employees sweep the greenhouse rows differently three separate times. Because of the heat, they were alternating working between the greenhouse and the air-conditioned packhouse every 30 minutes. Her employees were overheated, and they told her they needed to sit down, drink water, and rest. She told them she knew they were exhausted, but to please pretend they were cleaning.<\/p>\n\n\n\n

By mid-afternoon, drenched in sweat, Baxter took stock of the bustling greenhouse around her and the list of tasks still on her mounting to-do list. Overwhelmed, she put down her badge and her notebook, cleaned out her locker, and walked out the front door, quitting not only a job but her dream of making her living off the land. She drove home to the trailer she\u2019d moved into only ten months earlier, let her dogs out, sat on the front stoop, and sobbed. That day, AppHarvest stocks fell 29 percent. <\/p>\n\n\n\n

\"\"
Employees and machinery at work at AppHarvest’s packhouse on June 14, 2021. Jon Cherry<\/cite><\/figcaption><\/div><\/figure>\n\n\n\n

By the end of 2021, AppHarvest had earned only $9 million out of a projected $21 million in revenue. The next year, the company met less than half of its most optimistic sales projections. Beginning in early 2023, company stocks that once peaked above $42 per share never again rose above $1. In the spring, AppHarvest claimed it had only about $50 million on hand. Debt had reached $182 million. In order to remain in business, the company needed additional investors to provide an infusion of cash by October, according to public filings. <\/p>\n\n\n\n

Workers who convinced family and friends to buy stocks in the company said those who invested lost thousands of dollars. Meanwhile, former board member Jeffrey Ubben<\/a> \u201ccashed out,\u201d according to the securities fraud litigation, before the company\u2019s problems were publicly acknowledged in August of 2021. He sold 3 million shares at an average price of $16.50 per share, making $49.5 million. <\/p>\n\n\n\n

Baxter tried to get her job back, including by reapplying through Indeed. But she said once she walked out, no one ever contacted her again, or replied to her requests to return. Moore said she quit after she was told by the human resources manager that she couldn\u2019t work while taking pain medicine for a back injury she acquired at work, after slipping on a loose mat meant to sanitize workers’ shoes. Other workers left for jobs that demanded less overtime or paid higher wages. Some were fired after being minutes late to work, and some were handed termination notices during mass layoffs. One corporate employee was walked off their job by a security guard. <\/p>\n\n\n\n

\u201cIronically, in the next round of layoffs, I guess the security guard walked himself out because he got fired,\u201d the employee told Grist. <\/strong>In February 2022, half the office staff and all but one employee in the marketing department were let go in a single day, according to another former corporate employee.<\/p>\n\n\n\n

Over the course of 2021 and 2022, while AppHarvest let go of costly employees who drained the company pocketbook with high salaries and wages, health insurance premiums, and requests for promotions, the company hired contract laborers who wouldn\u2019t get any of this. In a November 2021 public filing<\/a>, AppHarvest noted the tightening nationwide labor market, the cost of training a new workforce, and issues of retention: \u201cIn order to forestall any potential labor shortfall, we have hired contract laborers from outside of the region to help complete our next harvest.\u201d <\/p>\n\n\n

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Less than a year after opening, AppHarvest began bringing in contract workers, according to multiple statements by former workers, a Rowan County executive, local residents, and a 2021 public filing. The new workers arrived in Morehead each morning on big white buses, according to Nora. They worked longer hours, sometimes not leaving until midnight, after picking up a second shift in the air-conditioned packhouse, according to multiple worker statements. While paid a similar starting rate to the local workers, according to a visa application<\/a> filed by AppHarvest for its Pulaski County facility, they didn\u2019t receive benefits like health insurance or stock options, according to worker interviews. An open records request from the Kentucky Education and Labor Cabinet reveals that just over the last year, AppHarvest brought in at least 140 migrant workers at $13.89 an hour at its Madison and Pulaski County farms.  <\/p>\n\n\n\n

Workers were housed in mobile homes and apartment complexes where the number of laborers appeared to far exceed occupancy levels. In Pulaski County, three mobile homes with an occupancy total of 17 were listed as the housing options for 30 workers. In Richmond, a 15-unit apartment complex with a 61-person limit was listed as the housing option for 90 workers. In Morehead, workers have been housed at the Red Roof Inn, Days Inn, and Comfort Inn, where there are no cooking stations and workers sometimes squeeze five into a two-bed room, according to Anne Colbert, a retired physician who runs a volunteer migrant support group in Morehead. <\/p>\n\n\n\n

Colbert said her organization first became aware of migrant laborers at AppHarvest last fall, when a volunteer saw a large group at Walmart. A few days before Thanksgiving, Colbert sent an email to Travis Parman, AppHarvest\u2019s chief communications officer, and told him the group was \u201crecently made aware of the needs of a group of Mexican contracted laborers working at AppHarvest who did not have appropriate winter clothing.\u201d Though the volunteers had already gathered winter clothing to donate to the new workers, Colbert pressed Parman on the company\u2019s plans to ensure that the group\u2019s basic needs were met. \u201cWe don\u2019t believe these guests should have to rely on donated goods,\u201d she wrote. <\/p>\n\n\n\n

\"\"
Workers at AppHarvest’s packhouse on June 14, 2021. Jon Cherry<\/cite><\/figcaption><\/div><\/figure>\n\n\n\n

Parman responded the next day, noting he was \u201cnot the right person\u201d for her to talk to but \u201cclose enough,\u201d and promising to consult with other employees and reply promptly. Colbert never heard anything more. Instead, her group delivered bags of apples and oranges to the motels where workers were housed over Christmas. <\/p>\n\n\n\n

Last year, Nora typically had 20 or more contract laborers on her team, and about 12 local people. All the greenhouse workers I spoke to who left in 2022 or 2023 said that, by the time they left, contract workers outnumbered local employees. As of this summer, AppHarvest retained more than 450 of these contract workers, paying them approximately $2.5 million each month. <\/p>\n\n\n\n

This change in strategy was a complete departure from AppHarvest\u2019s original pledge to hire Appalachian workers and build up the region with reliable, blue-collar careers. \u201cTraditionally, many agricultural workers in the U.S. have been H-2A, temporary agricultural workers, who at best are offered housing and other perks if they\u2019re seasonal,\u201d the company had noted in a 2020 report. Instead, AppHarvest wrote, as a certified B Corp, the company valued collective benefit over individual gain, along with empowering Appalachians and improving the lives of employees and the community. In a 2021 interview, Webb said, \u201cPrioritizing the employee, that\u2019s just simple human decency.\u201d<\/p>\n\n\n\n

\"\"
Jonathan Webb, then-CEO of AppHarvest, addresses employees during a pre-shift meeting on June 15, 2021, in Morehead. Jon Cherry<\/cite><\/figcaption><\/div><\/figure>\n\n\n\n

Harry Clark, the judge executive of Rowan County, said that Webb only reluctantly pursued contract labor when he couldn\u2019t fill positions locally. But his comments run counter to what former employees say they saw and experienced: A former corporate employee said the work Webb did \u2014 talking to reporters, appearing on the news, uplifting the Appalachian labor force \u2014 was \u201call about image.\u201d A former member of the marketing team recalled that photographers were told not to take pictures of the contract workers, most of whom were Hispanic, because the company wanted to show it was employing Appalachians, who were largely white. When the former marketing team member visited the greenhouse, they saw few workers in the thick rows of green tomato vines until a Mexican song came over the shared speaker system and they heard laborers sing along.<\/p>\n\n\n\n

\u201cHe [Webb] was trying really hard to relate to the blue-collar workforce that we have in Morehead,\u201d said the corporate employee. When I visited the greenhouse to report on AppHarvest for Rolling Stone<\/a> in 2021, Webb called himself a \u201cresident of Kentucky\u201d who lived in his RV on the Morehead construction site while looking for apartments nearby. But the year before, he had bought a 4,000-square foot house for almost $1.4 million in Lexington, an hour\u2019s drive away, which was later the subject of a home makeover<\/a> featured on HGTV. (Webb did not respond to multiple requests for comment for this story.)<\/p>\n\n\n\n

Mays said she felt she was kept on as long as she was to \u201ckeep up appearances that they were giving jobs to Appalachian people.\u201d But she was eventually fired over the phone, just a month after she and her fiance had gotten engaged at an Alcoholics Anonymous meeting and Webb\u2019s personal assistant had offered to pay for their wedding on company grounds. \u201cWe legitimately thought these people were our family and they cared about us,\u201d she said.<\/p>\n\n\n\n

After two years with AppHarvest, Nora had a long conversation with her husband. She was miserable at work, and she felt her mental health wasn\u2019t prioritized by her employer. <\/p>\n\n\n\n

\u201cI\u2019ve been having these thoughts, and I think they’re dangerous,\u201d she told him. \u201cOn the way to work every morning, I want to let go of my steering wheel and wreck it so I don\u2019t have to go in. I don\u2019t want to die, but I want to get hurt enough so I don\u2019t have to work.\u201d <\/p>\n\n\n\n

Her husband encouraged her not to go back, but Nora felt an overwhelming sense that she owed AppHarvest her labor and her loyalty. <\/p>\n\n\n\n

\u201cA long time after I left I said I felt brainwashed,\u201d said Nora. \u201cMaybe they caught my little bleeding heart, and I wanted to save the world. \u2026 I think that\u2019s what hooked us, trying to save the world.\u201d <\/p>\n\n\n\n

\n\n\n\n

This spring, the faltering promise of CEA as a planetary savior finally dominoed into AppHarvest. A Delaware-based creditor demanded the repayment of over $47 million<\/a>, while a west coast investor, Equilibrium, alleged the company needed to repay over $66 million, about a third of the company\u2019s $182 million debt, or risk foreclosure. A third creditor staged a mutiny, threatening to evict AppHarvest from its Berea farm. <\/p>\n\n\n\n

By mid-July, Webb left his position as CEO, and the company paid almost $2.5 million to its four-man executive team, which included Webb in his short-lived demotion as chief strategy officer. A week later, on July 23, AppHarvest filed for bankruptcy in a Texas court for all 12 of its affiliated businesses. The next day, AppHarvest received notice from Nasdaq that the company\u2019s stock would be delisted; stocks closed at $0.09 per share. Then, on September 29, Webb was fired<\/a> \u201cwithout cause.\u201d His severance package included $125,000<\/a> plus health insurance coverage, paid out over six months. (At the time of this story\u2019s publication, he still serves on the company’s board.)<\/p>\n\n\n\n

These losses, while staggering and sudden, are not surprising to Bugbee, the plant scientist. To make CEA profitable, he said, human labor has to be replaced with robotics to lower the costs of repetitive tasks like planting and harvesting, which are easily automated.<\/p>\n\n\n\n

\u201cWe want to believe there\u2019s some magic bullet we\u2019re going to discover and all these [climate] problems will be solved,\u201d he added. \u201cBut as a scientist, I feel it\u2019s incumbent upon me to say, \u2018Wait a minute. This is not a magic bullet.\u2019\u201d<\/p>\n\n\n\n

\"\"
<\/figcaption><\/div><\/figure>\n\n\n\n

American policymakers, on the other hand, remain bullish on CEA, despite the recent failures. <\/p>\n\n\n\n

\u201cIt is unfortunate that AppHarvest has had the challenges that it has. But we know that agritech is a big part of Kentucky\u2019s future, and we need to be at the forefront of it,\u201d Kentucky Governor Andy Beshear\u2019s office wrote in an emailed statement attributed to the governor. \u201cRegardless of who is leading the company or who owns the facility, I believe in the end, they will have a bright future; and there are a whole lot of jobs there, so we should all be rooting for it.\u201d<\/p>\n\n\n\n

For Nora, it took nine months after she quit to stop crying herself to sleep. Now, she works as a building services technician in Morehead. Other ex-AppHarvest employees are scattered around the town: Some ended up at Buffalo Wild Wings or assembly lines in nearby plastics, cabinet, and barrel stave factories. Mays became assistant manager at the Family Dollar store. Moore went to the Family Dollar Distribution Center down the street from the greenhouse, where a night shift can earn $19.75 an hour. Baxter, who\u2019s been staying at a campground in her RV, which she calls the Dream Capture, is looking for work.<\/p>\n\n\n\n

\u201cOther jobs you quit them and you move on. This job I feel like you had to detox from, because after you quit you\u2019re so afraid to say anything because you\u2019re afraid AppHarvest will sue you,\u201d said Nora. \u201cI told my husband I\u2019m tired of hiding from the big, bad AppHarvest. You did me wrong.\u201d<\/p>\n\n\n\n

\"\"
A branded AppHarvest water bottle hangs at the start of a row of tomatoes on June 14, 2021. Jon Cherry<\/cite><\/figcaption><\/div><\/figure>\n\n\n\n

Nora\u2019s worst memory is of her birthday in June 2021, when she had to sweep shattered glass that fell from the greenhouse ceiling. The task triggered nightmares of glass panels that exploded and decapitated her, grow wires that electrocuted her, and tomato stakes that impaled her. <\/p>\n\n\n\n

\u201cAny way I could imagine dying in that greenhouse, I dreamt it,\u201d Nora said. In the months before AppHarvest\u2019s bankruptcy, before the facilities were sold, Nora said she felt like when she joined AppHarvest, she\u2019d joined a cult. <\/p>\n\n\n\n

\u201cWe dress alike, we\u2019re told what to say, what to do, we\u2019re always there, we didn\u2019t have time with family and friends. Our family and friends were AppHarvest,\u201d she said. \u201cHow did I not see this? That this was not a good place to be?\u201d<\/p>\n

This story was originally published by Grist<\/a> with the headline A celebrated startup promised Kentuckians green jobs. It gave them a ‘grueling hell on earth.’<\/a> on Nov 16, 2023.<\/p>\n

This post was originally published on Grist<\/a>. <\/p>","protected":false},"excerpt":{"rendered":"

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