Monarch Tractor, has announced what it says is the largest fundraising round in agricultural robotics history. The history-making $133 million Series C means the company has raised over $220 million in its effort to create the MK-V, the world’s first fully electric, driver-optional smart tractor; the Wingspan Ag Intelligence farm-management platform; and expand into various agricultural markets such as vineyards, dairy, berries, orchards, and land management across 12 states and three countries.

The funding was co-led by global impact investor Astanor and HH-CTBC Partnership, with additional support from prominent investors including At One Ventures, PMV, and Welvaartsfonds. It will support the expansion of Monarch’s digital solutions and AI applications including the development of Autodrive, Monarch’s autonomous operations feature, for new global markets and crop sectors—and enable the company’s path to profitability.

Founded on the belief that food security only exists with planet sustainability and farmer profitability, Monarch has focused on the critical transition to renewably powered and more profitable farming ecosystems to empower farmers worldwide. In the U.S., farm profitability has steadily declined over the past decade, with the sharpest decline in industry history occurring in 2023, according to the U.S. Department of Agriculture.

Monarch believes the sector is ripe with untapped growth potential across automation, digital technologies, and AI efficiencies, with Monarch at the forefront of this disruption and technological advancement.

“Driven by artificial intelligence and electrification, agriculture has arrived as the next frontier for the energy transition and sustainability movement,” said Praveen Penmetsa, CEO and Co-founder of Monarch Tractor. “Agriculture is our planet’s most important and overlooked sector, and those in the industry have faced significant challenges, including farm profitability, labor shortages, worker safety, government headwinds, data availability, and scrutiny for sustainability demands. Monarch’s application of AI and introduction of a smart, electric platform will deliver robust social, economic, and environmental returns to farmers.”

Tractors have been the center of all farm operations for several decades, yet they’ve been underutilized as a hub for robotics innovation and farmer payback, according to Monarch. The company believes that continual development of product solutions, including the introduction of new AI capabilities, will be the driving force in closing the industry’s profit gap.

In December 2022, the company released the MK-V, the world’s first fully electric, driver-optional, smart tractor, to combat profit challenges, address sustainability demands, and revive agriculture innovation. Since then, the deployment of more than 400 MK-Vs has helped, resulting in more than 850 t (937 ton) of harmful CO2 emissions offset across 42,000 h of tractor operations.

Monarch’s WingspanAI app is equipping farmers with “unprecedented access” to on-farm data, integrating into one platform a farm-management system, vehicle position tracking, crop image collection, and automated operations planning.

Monarch customers have seen success with implementing MK-V tractors into their daily operations. For instance, premium fine wine and craft spirits producer Constellation Brands saw over 1700 h of EV tractor operations, over $16,000 in energy savings, and 8000 kg of CO2 emissions reductions in eight months.

As with electric passenger cars, federal, state, and local government incentives can help offset the costs associated with creating a more sustainable future for farmers. With products like the MK-V, Monarch believes it is driving customer demand for electric farm machinery and catalyzing greater interest in subsidies and support for clean technology in agriculture.

In May, the company announced that the MK-V now qualifies for substantial cost reductions under the USDA Natural Resources Conservation Service’s EQIP (Environmental Quality Incentives Program), an initiative designed to support sustainable agricultural practices. Farmers nationwide can acquire the tractor at less than 50% of its retail price, promoting access to more affordable, cutting-edge agricultural technology.

The EQIP program provides technical and financial assistance for farmers to address natural resource concerns such as improved air quality or wildlife habitat. It is currently available in Alaska, Arizona, Colorado, Connecticut, Idaho, Minnesota, Nebraska, Nevada, New Hampshire, Utah, Vermont, Washington, and Rhode Island.