The agreement with Monarch Tractor is the first manufacturing contract that Foxconn has entered into since purchasing the Ohio facility, formerly a General Motors Assembly plant last year.

Production for Monarch’s battery powered MK-V series tractor is scheduled to begin in the first quarter of 2023, said Foxconn, formally known as Hon Hai Technology Group.

Monarch, which is based in Silicon Valley, debuted its first pilot series, an autonomous electric tractor, to a select group of farmers last year. The company has since entered into a multi-year licensing agreement with Italian American vehicle manufacturer CNH Industrial.

CNH Industrial has a minority stake in Monarch Tractor.

Monarch’s chief executive, Praveen Penmetsa, told Reuters that the company’s business model of targeting smaller farmers gives them a unique opportunity to increase the market share while occupying the same playing field as larger manufacturers.

“Their technology is focused on the large farm operations and commodity crops. Fruits and vegetable farmers use much smaller tractors, so we are focused on smaller farmers – that differentiates us a lot,” Penmetsa said.

The company did not disclose the cost of the tractor but said the autonomous software will be sold separately and farmers will have to pay a monthly fee to access the services.

A statement from the company said the machine offers solutions to challenges such as the farm labor shortage, climate change, and farmer safety.

“Monarch Tractor addresses these issues by combining electrification, automation, machine learning, and data analysis to enhance farmer’s existing operations, increase labor productivity and safety, and maximize yields to cut overhead costs and emissions,” the company said. It also said it has secured several hundred working farms as preliminary customers.

The tractor can operate with or without a driver. Without a driver, it can perform pre-programmed tasks, or an operator can use interactive automation features to remotely direct the machine.

Carlo Mondavi, a fourth-generation farmer and chief farming officer at Monarch, said the equipment “is moving farming toward a safer and sustainable future by eliminating harmful emissions, reducing the need for herbicides and keeping workers out of harm’s way with its driver-optional capabilities.”

The company received “2020 Tractor of the Year” in the AgTech Breakthrough Awards, was named one of World Ag Expo’s “Top 10 Best New Products,” and recognized in Fast Company’s “Best World-Changing Ideas: North America, Energy and Food.”

The tractor has a starting price of $50,000. It will begin to ship in the fall.

Source: Ag Equipment Intelligence