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Palantir announced a $300 million contract with the U.S. Department of Agriculture to use the software company’s technology for farmland management as geopolitical risks threaten global supply chains.
The agreement builds on an ongoing project with the Department of Agriculture and underscores Palantir’s growing role within the U.S. government beyond basic defense contracts to support the modernization of the U.S. military.
American farmers are suffering from rising supply costs and are being squeezed by the ongoing trade war between the United States and its major trading partners. That includes China, a major soybean buyer that briefly paralyzed the market late last year.
In December, President Donald Trump announced a $12 billion relief package aimed at helping farmers caught up in the trade war. But the pressure was amplified by soaring gas prices due to the Iran war, and transportation disruptions caused fertilizer costs to soar. This has forced many farmers to rethink what they produce, putting supply chains at risk.
China’s recent purchases of U.S. farmland have also drawn scrutiny from the U.S. government and foreign policy experts.
A recent research paper published by the Defense Democratic Foundation recommends that USDA reform reporting requirements be “incorporated into the Agriculture Foreign Investment Disclosure Act (AFIDA) to prevent China and other adversaries from exploiting commercial land transactions to gain strategic advantage against the United States.”
USDA’s agreement with Palantir demonstrates the company’s desire to leverage its digital tools to address this issue.
Palantir was founded in 2003 to expand U.S. defense capabilities in the wake of 9/11, and CEO Alex Karp has long touted the company’s commitment to supporting U.S. warfighters. The company recently gained recognition for its AI-powered Maven Smart System platform used by the U.S. military in Iran.
“The fact that we can now target more precisely has changed the way wars are fought,” Karp told CNBC at AIPCon in March.
Palantir has also faced harsh criticism over the years for its work with U.S. Immigration and Customs Enforcement and the Department of Homeland Security, including reports that its tools are used to surveil Americans.
Mr. Karp has been unabashed in addressing these claims and going after short sellers who bet against the stock. Palantir stock is down 18% so far this year after a historic run that boosted its stock price more than 25 times from 2022 to the end of 2025.
Prominent short seller Michael Burry has been betting on the company since fall 2025, calling it “hugely overvalued.”
“I think this behavior is egregious, and I’m going to be happy if they prove me wrong,” Karp said of short sellers in November.
WATCH: Alex Karp explains Palantir’s role in modern warfare
