PepsiCo and Cargill: Partnering for Regenerative Agriculture
According to the United Nations, about a third of all human-caused GHG emissions is linked to food.
PepsiCo and Cargill have announced a partnership to implement regenerative agriculture practices across 240,000 acres of Iowa farmland by 2030 to scale regenerative farming in the heart of the US corn belt.
The initiative marks a significant step toward strengthening agricultural supply chain resilience, boosting farmer livelihoods and reducing environmental impact.
A sustainable supply chain
The partnership will focus on the companies' shared corn supply chain in Iowa, where Cargill sources from local farmers to produce ingredients used in some of PepsiCo’s most iconic products.
This includes snacks and beverages enjoyed more than one billion times a day across more than 200 countries.
Creating a more resilient agricultural system is critical to PepsiCo's business
The company sources 35 crops and ingredients from more than 60 countries to make its convenient foods and beverages.
With Cargill acting as a major supplier, the partnership enables a more aligned, traceable and sustainability-focused supply chain.
"This partnership is about delivering practical, measurable results, starting on the farm where the food system begins," says Pilar Cruz, Chief Sustainability Officer at Cargill.
"By coming together across the value chain, we can help create the conditions for regenerative agriculture to take root and grow.
“The collaboration offers a model for how we can drive meaningful impact at scale."
Non-profit farming in Iowa
The non-profit Practical Farmers of Iowa (PFI) will lead the local implementation of this collaboration.
PFI, deeply embedded in the Midwest farming community, is set to provide farmers with technical advice, tailored recommendations based on crop type and regional conditions and financial incentives to ease the transition to regenerative practices.
“By working with farmers to understand what’s best for their farms and partnering across the supply chain we can accelerate the adoption of regenerative agriculture practices that can result in healthier soil, reduced emissions and improved crop yields and livelihoods for farmers,” explains Jim Andrew, Chief Sustainability Officer at PepsiCo.
“This collaboration among PepsiCo, Cargill and Practical Farmers of Iowa creates shared value and long-term sustainability that we believe will strengthen our business today and in the future.”
Scaling and benefits of regenerative agriculture
Iowa, the largest corn producer in the United States, contributed more than 15% of the nation’s supply in 2024.
By leveraging this agricultural weight, the partnership has the potential to make a sizable impact on US food systems.
Participating farmers will gain access to agronomic guidance, technical tools and incentive payments designed to lower the financial risk of changing practices.
PFI will also oversee measurement, reporting and verification of outcomes to ensure changes are credible and science-based.
These regenerative practices are expected to improve soil health, increase resilience to climate impacts and bolster long-term productivity.
Importantly, they also connect farmers to a more sustainability-conscious supply chain, opening up future opportunities for premium market access.
This joint initiative also aligns with the broader ambitions of both companies.
PepsiCo aims to drive regenerative, restorative or protective practices across 10 million acres globally by 2030.
Cargill holds the same target across North America.
A model for sustainable food systems
PepsiCo, with nearly US$92bn in net revenue in 2024 and Cargill, with a 160-year legacy and 160,000 employees worldwide, are among the largest actors in global food and agriculture.
Their decision to scale regenerative practices in Iowa underscores how large corporations can use their reach to catalyse environmental and social change from the ground up.
As Cargill and PepsiCo build on years of collaboration with Practical Farmers of Iowa, their joint initiative offers a replicable framework for transforming agriculture into a solution for climate, economic and food system challenges.
