Maggie McGrath, Senior Editor at Forbes, recently sat down with Monarch Tractor CEO and co-founder, Praveen Penmetsa, on Forbes Talks to catch up on Monarch’s activities. It was a follow-up to Monarch being named to the 2023 Forbes’ Next Billion-Dollar Startup List. What ensued was a deep dive into ag technology, food security, and the implications of Monarch’s digital platform for farming in the U.S. and around the world.
Benefits of Autonomous Farming
When Monarch’s MK-V entered the market in 2022, it was the world’s only commercially available 100% electric, driver-optional, smart tractor. Over two years later it still holds that title. Despite significant economic challenges across the agricultural industry, more than 500 MK-V tractors have been purchased, and farmers have logged over 70,000 hours on them.
Helping farms become profitable is a Monarch core tenet and the company is excited about the savings it’s bringing to farmers along with no emissions. Penmetsa says that on the electricity side farmers get to save roughly $7-12 for every hour they use the MK-V. On the autonomous side, Monarch is rolling out features in a phased manner; many customers are using the MK-V’s driver-assist and automation features, saving them labor costs and finding labor efficiencies.
Ag Unicorn
McGrath asked about Monarch’s progress since being named an ag unicorn and how that recognition impacted the company. The attention certainly helped bring the message of agriculture and food security to the mainstream media. Monarch doubled its valuation during a challenging time for both startups and agriculture, establishing it as a leader in the robotic agriculture space.
While numerous factors made 2024 a tough economic climate for agriculture, it set a foundation for Monarch’s growth and trajectory by encouraging forward-thinking organizations and forward-thinking farmers.
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A number of large companies that have seen our success at scale are partnering with us to use our technology on their equipment. They are coming to Monarch saying, ‘Can we leverage your software stack? Your electrification and technology?’ These are enablers for continuous growth.
Praveen Penmetsa, CEO & Co-founder, Monarch Tractor
Future Projections
Penmetsa anticipates another tough year for the agriculture industry in 2025. Monarch, however, is positioned as a potential solution for equipment companies facing difficult decisions on whether they develop their own technology or access it another way, such as through Monarch’s licensing programs. In fitting with its farmer-first philosophy, Penmetsa emphasizes that Monarch’s strategy has always been about democratizing its technology.
“We can be good partners for a lot of OEs who still want to compete with large incumbents and gain a competitive edge in this downturn,” Penmetsa says.
Monarch’s technology represents a shift in agriculture. For Penmetsa, it’s familiar territory. He’s experienced industry shifts in automotive and energy. He recognizes there is no farm profitability with the world’s current food ecosystem and without farmers there is no food security. Engineering the tractor as a technology platform can have a global impact, making farming profitable and sustainable, bringing food security around the world with affordable options of nutritious foods.
I’m a big believer in fighting the battles that need to be fought, not just the ones that can be won.
Praveen Penmetsa, CEO & Co-founder, Monarch Tractor
Solving AgTech issues can reach real Americans through the food they eat.
Maggie McGrath, Senior Editor, Forbes in Forbes Talks
Farming’s Next Generation
While OEs are approaching Monarch about leveraging its technology, Monarch is also looking ahead to how the very nature of farming is evolving. Ongoing developments for cloud computing and AI require massive amounts of energy and Penmetsa points out that the only sustainable, profitable way of generating that energy today is through solar. However, solar farms will compete with food farming for the same land. Monarch sees a way forward.
“Our tractor is managing solar farms but also allowing farmers to grow fruits and vegetables while using that same land for energy generation,” Penmetsa explains.
This use of the MK-V emphasizes its position as a platform for farming and land management with which people can get creative on how they use it.
Supporting U.S. Security
The United States wants to strengthen its security across verticals. As an energy and robotic platform that functions as a traditional tractor, the MK-V is supporting energy and food security. Monarch’s tractors are built in the U.S.A., bolstering domestic manufacturing. Encouraging these solutions be developed and deployed in the U.S. is something Monarch has been doing since its inception.
Labor security is another looming agricultural issue. Farms are up against labor shortages and the MK-V's combination of automation and enabling existing farmhands to work more efficiently can help significantly. Additionally, Monarch has been systematically addressing the dangerous, dirty, and dull elements of agricultural labor — safety issues, toxin exposure, and monotonous tasks. Farm laborers deserve work that elevates their skills and future.
McGrath closed the interview asking about what’s in store for 2025. Penmetsa responds, “I would love to showcase our successes as a digital platform where we can say Monarch is not only delivering tractors to farmers but also has become the Android of agriculture, enabling a lot of other global equipment companies to start delivering clean and smart solutions to farmers that are making farming more profitable.”
