PepsiCo, ADM announce agreement to support regenerative agriculture practices on up to 2 million acres of farmland

Strategic partnership between two global companies, with footprints extending from the farm gate to foods and beverages, provides unique opportunity to expand regenerative agriculture at scale

Grain processing giant ADM and global food manufacturer PepsiCo recently announced a 7.5-year strategic commercial agreement to collaborate on projects that aim to significantly expand regenerative agriculture across their shared North American supply chains. This partnership is expected to reach up to 2 million acres by 2030, and represents a trailblazing effort by two global companies that share ambitious carbon reduction goals. The companies’ capabilities span the food and agriculture value chains, creating a unique, large-scale platform to support farmers’ transition to regenerative agriculture, while building their resilience to climate change.

The long-term agreement will initially enroll corn, soy and wheat farmers across Kansas, Minnesota, Iowa, Illinois, Indiana and Nebraska, with the opportunity for future expansion, to increase visibility across the value chain and integrate a range of multi-year farmer-first regenerative agriculture initiatives, including cover crops, reduced tillage, nutrient management, diverse rotations, and responsible pesticide use. The companies plan to share resources and collaborate to create value throughout the supply chain by providing participants with technical and financial assistance, offering access to peer regenerative farming networks, hosting educational field days, and tracking results using trusted, third-party measurement systems.

Reaching the strategic partnership’s goals could eliminate 1.4 million metric tons of greenhouse gasses—equivalent to the amount of electricity used to power 275,000 homes per year—at the farm level, while creating meaningful shared value directly for farmers.

Organic & Non-GMO Insights October 2022