JD Vance, a venture capitalist turned U.S. Senator, became a prominent figure in the investment world with his backing of AppHarvest, a high-tech agriculture startup. For four years, Vance was a prominent investor, board member, and advocate for the company, publicly praising it as a transformative force for American farming and the revitalization of Eastern Kentucky. Yet, as reported by CNN, the company’s rise and subsequent fall starkly contradict Vance’s self-proclaimed image as a staunch advocate for working-class Americans.
Vance, who heavily promoted AppHarvest, invested in the startup with the promise of high-tech indoor farming and job creation in economically distressed regions. “It’s not just a good investment opportunity; it’s a great business making a big difference,” Vance stated during the company’s public debut in February 2021.
However, the company’s trajectory has been disastrous. AppHarvest filed for bankruptcy last year, burdened with over $341 million in debt, and now faces numerous lawsuits from disgruntled shareholders. CNN’s investigation reveals that Vance’s touted project not only failed financially but also provided grueling working conditions for many employees.
According to former workers interviewed by CNN, the reality at AppHarvest was far from the positive image Vance and the company projected. Workers endured extreme temperatures in the company’s greenhouses, often reaching over 100 degrees. Complaints filed with the U.S. Department of Labor and Kentucky regulators describe insufficient water breaks and inadequate safety gear, leading to numerous instances of heat exhaustion and injury.
Moreover, despite initial promises to local workers, AppHarvest increasingly relied on migrant labor from Mexico, Guatemala, and other countries. This shift contradicted the company’s public messaging about creating jobs for local residents.
Former employees, like Anthony Morgan, who joined AppHarvest in 2020, described deteriorating conditions. Morgan recounted the intense heat and lack of adequate breaks, with some workers being taken away on gurneys due to heat-related illnesses. Conditions worsened over time, with the company cutting costs and benefits, leading to high employee turnover.
Shelby Hester, another former worker, echoed these concerns, noting the lack of protection from mold and harsh working conditions. Despite state inspections not citing violations, former employees argue that the conditions were dangerously unsafe.
Vance, who stepped down from AppHarvest’s board in 2021 to focus on his political career, remains an investor in the company. His spokesperson, Luke Schroeder, claimed that Vance was not involved in operational decisions made after his departure and expressed regret that the company did not succeed.
The company’s meteoric rise was matched by a swift fall. After its initial public offering in February 2021, AppHarvest’s stock plummeted, and it faced a barrage of legal challenges alleging misleading statements and fraudulent practices. Vance, while no longer on the board, continued to support the company through his venture capital firm, Narya.
As Vance campaigns on a platform of economic revitalization, some former AppHarvest workers feel disillusioned by the contrast between his rhetoric and their experience. “The reality of working at AppHarvest was a nightmare,” said Morgan. “I hold the investors, including Vance, responsible for the failed promises and harsh conditions.”
The collapse of AppHarvest serves as a stark reminder of the challenges and realities facing ambitious startups, particularly when their lofty promises fail to align with operational realities and employee welfare.
