Inside PepsiCo & Cargill's Regenerative Production Approach
PepsiCo and Cargill have teamed up with Practical Farmers of Iowa to implement regenerative practices across 240,000 acres of corn farmland by 2030.
The two manufacturers have announced a new collaboration to roll out regenerative agriculture across 240,000 acres of farmland in Iowa by 2030.
The project, rooted in the companies’ shared corn supply chain, is designed to improve agricultural resilience, cut emissions and support farming livelihoods in the heart of the United States’ corn belt.
Building a more sustainable supply chain
According to the United Nations, about one third of human-caused greenhouse gas (GHG) emissions comes from food manufacturing. This partnership between PepsiCo and Cargill aims to address that reality by making targeted changes at the farm level.
The project focuses on Iowa, where Cargill works with local farmers to produce ingredients used in some of PepsiCo’s best-known products. These snacks and beverages are consumed over one billion times a day across more than 200 countries.
PepsiCo sources 35 different crops and ingredients from over 60 countries to support its global portfolio. With Cargill serving as a key supplier, this collaboration supports a more traceable and sustainability-focused supply chain.
"Creating a more resilient agricultural system is critical to PepsiCo's business,” says Jim Andrew, Chief Sustainability Officer at PepsiCo.
The new initiative reflects an aligned effort to strengthen supply chain resilience.
By supporting farmers directly in their transition to regenerative practices, both companies aim to improve soil health, increase productivity and reduce environmental impact.
“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."
Supporting farmers through a non-profit partner
The implementation of this project will be led locally by Practical Farmers of Iowa (PFI), a non-profit group embedded in the Midwest farming community. PFI is known for its technical knowledge, regional expertise and trusted relationships with farmers.
Under this partnership, PFI will provide participating farmers with technical advice, crop-specific recommendations, and financial incentives to support the transition from conventional to regenerative agriculture.
These practices include cover cropping, reduced tillage and diversified crop rotations aimed at building soil health and improving yields.
The financial support is designed to reduce the economic risks farmers face when shifting their methods. At the same time, farmers will gain access to new tools and agronomic guidance intended to support long-term changes in land management.
PFI will also oversee outcome measurement, reporting and verification. These steps help ensure that results are based on science and can be tracked in a transparent way.
“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,” says Andrew.
“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 up impact in the US food system
Iowa, which produced more than 15% of the United States’ corn in 2024, is a critical location for testing and expanding regenerative practices.
By targeting this state, PepsiCo and Cargill are using a high-volume supply chain to catalyse systemic change.
Through this project, participating farmers will gain access to tools, resources and incentive payments that lower the cost and uncertainty of change. The expected benefits include improved resilience to climate impacts, enhanced soil health and potential access to new market opportunities that prioritise sustainable sourcing.
The work also supports PepsiCo’s global target to implement regenerative, restorative or protective agriculture across 10 million acres by 2030. Cargill has set the same goal for North America.
PepsiCo, which reported nearly US$92bn in net revenue in 2024, and Cargill, a privately held company with a 160-year history and 160,000 employees worldwide, are using their influence in the food system to push for change that begins on farms.
With Practical Farmers of Iowa anchoring the local delivery, the partnership provides a working model for scaling regenerative agriculture within large, complex supply chains.
