PepsiCo and Cargill announced a long-term strategic partnership aimed at expanding regenerative agriculture practices across 240,000 acres of farmland by 2030, beginning in 2025.
This initiative will focus on the companies’ shared corn supply chain in Iowa, where Cargill partners with local growers to source ingredients used in some of PepsiCo’s most recognized food and beverage products. As agriculture plays a central role in PepsiCo’s global operations-spanning 35 crops in over 60 countries-the company is committed to fostering a more resilient agricultural system. Cargill, a key supplier in PepsiCo’s value chain, will work closely to align upstream sourcing efforts with broader sustainability goals, supporting regenerative practices that benefit both people and the planet.
Iowa, the leading corn-producing state in the U.S., accounts for more than 15% of national corn output as of 2024. Leveraging trusted local partnerships, the collaboration will work with Practical Farmers of Iowa (PFI)-a nonprofit with deep expertise in the Midwest agricultural community-to provide farmers with regionally tailored guidance and regenerative farming solutions. These on-the-ground insights will be vital in helping producers transition to more sustainable growing methods that build healthier soil and promote long-term agricultural resilience.
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“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,” said Jim Andrew, PepsiCo Chief Sustainability Officer. “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.”
Through this initiative, farmers will receive customized support to adopt practices such as cover cropping, reduced tillage, nutrient management, and crop diversification. These methods are proven to enhance soil health, improve water retention, and lower greenhouse gas emissions-while maintaining or improving yields.
The partnership also aligns with the long-term environmental commitments of both companies. PepsiCo recently expanded its regenerative agriculture goal to encompass 10 million acres globally by 2030, while Cargill is advancing its own pledge to promote regenerative practices on 10 million acres of North American farmland within the same timeframe.
“This partnership is about delivering practical, measurable results – starting on the farm, where the food system begins,” said 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.”