Elon Musk’s high-flying SpaceX is expanding into a partnership with a decidedly grounded company: John Deere. Deere, one of the biggest names in American farming, plans to start offering Starlink-enabled farm equipment later this year, to give rural farmers better access to high-tech farming methods.
American farmers are increasingly relying on so-called “precision agriculture” tools to more efficiently grow, harvest and process crops: think self-driving tractors and pesticide-spraying drones. But unreliable internet access – which is especially pervasive in rural agricultural areas – helps keep almost three-quarters of American farms from taking advantage of the tech, according to the U.S. Department of Agriculture.
Precision agriculture tools are a key innovation in modern industrial farming. Automating labor-intensive tasks, such as planting and harvesting, means farmers can spend less time out in the field. Increased automation makes agriculture more profitable and reduces environmental impacts. And downstream, consumers benefit in the form of safer food and better tracing where their food is sourced from.
“With improved connectivity via satellites, farmers will be able to work more efficiently and productively, reduce downtime, and coordinate among machines for more efficient use of resources,” wrote Mike Kool, senior product manager of connected fleet at John Deere, in an email to Fortune.
Starlink, a division of SpaceX, maintains a network of thousands of low-orbit satellites able to provide internet access almost anywhere on Earth. It’s been in the news recently due to its strategic importance to the Ukrainian military. (And, controversially, Musk’s alleged decision to temporarily cut off access in order to stop a Ukrainian missile attack last year, which Musk denies.)
Starlink has become one of the crown jewels under SpaceX’s umbrella. It earned $1.4 billion in revenues in 2022, up from just $222 million the year prior, and it’s reportedly on the cusp of landing major contracts with the Pentagon. That track record has helped send SpaceX’s rumored private valuation to around $175 billion, higher than any IPO valuation in American history.
