PepsiCo and Cargill Collaborate to Empower Farmers by Advancing Sustainable Agriculture

Rhea-AI Summary

PepsiCo (NASDAQ:PEP) and Cargill have announced a strategic collaboration to implement regenerative agriculture practices across 240,000 acres of Iowa farmland by 2030. The initiative focuses on their shared corn supply chain in Iowa, where Cargill sources ingredients for PepsiCo's products.

The partnership, implemented by Practical Farmers of Iowa (PFI), will provide farmers with technical guidance, financial incentives, and support for adopting sustainable farming practices. This aligns with PepsiCo's expanded goal to implement regenerative practices across 10 million acres globally by 2030, and Cargill's aim to advance regenerative agriculture on 10 million acres of North American farmland.

Participating farmers will receive agronomic guidance, incentive payments, and technical resources to support their transition to sustainable practices, aimed at improving soil health and farm productivity.

Positive

• Strategic expansion of regenerative agriculture across 240,000 acres by 2030
• Financial incentives and technical support provided to participating farmers
• Alignment with both companies' sustainability goals for 10 million acres by 2030
• Partnership with established local organization (PFI) for implementation

Negative

• None.

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• PepsiCo and Cargill aim to expand regenerative agriculture practices across 240,000 acres of Iowa farmland by 2030.
• The collaboration 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
• Practical Farmers of Iowa will implement this collaboration locally, providing technical guidance and financial incentives to farmers adopting regenerative agriculture practices.

PURCHASE, N.Y. and MINNEAPOLIS, July 15, 2025 /PRNewswire/ -- PepsiCo (NASDAQ:PEP) and Cargill today announced a strategic collaboration to advance regenerative agriculture practices across 240,000 acres from 2025 through 2030.

The collaboration 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. Agriculture, and creating a more resilient agricultural system, is critical to PepsiCo's business, as the company sources 35 crops and ingredients from more than 60 countries to make its convenient foods and beverages. As a global supplier to PepsiCo, Cargill plays a key role in aligning the supply chain from farm to shelf. Together, the companies aim to deepen supply chain resilience, support positive outcomes for farming communities by helping them implement regenerative practices, and unlock new opportunities for advancing sustainable agriculture at scale.

Iowa is the United States' largest producer of corn, contributing to more than 15% of the nation's supply in 2024¹. Through trusted local organizations – led by Practical Farmers of Iowa (PFI), a nonprofit organization with deep roots in the Midwest farming community – this collaboration aims to provide farmers with the knowledge they need to implement regenerative techniques and help them produce crops more sustainably.  PFI will offer farmers tailored advice and recommendations based on their region and planted crops—insights grounded in local realities. This type of collaboration is key to scaling regenerative farming practices that can ultimately support farmers and strengthen the resilience of the global food system.

"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." 

This initiative also supports both companies' ambitious goals: PepsiCo's recently expanded goal to drive the adoption of regenerative, restorative, or protective practices across 10 million acres globally by 2030, and Cargill's goal to advance regenerative agriculture on 10 million acres of North American farmland by the same year.

"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."

Building on years of successful collaboration among PepsiCo, Cargill, and PFI, this initiative expands into a larger effort to transform today's agricultural practices for the betterment of farmers, communities, and the environment.

Benefits to Farmers

Participating farmers will receive agronomic guidance, incentive payments to help reduce the risk of adopting new practices, and access to technical resources to support their transition to regenerative practices, allowing them to expand their sustainable footprint with support from experienced organizations.

PFI will lead implementation with farmers, managing enrollment and overseeing measurement, reporting, and verification to ensure credible, science-based outcomes.

These practices are designed to improve soil health, increase resilience to climate impacts, and enhance long-term farm productivity—while connecting farmers to sustainability-focused supply chains.

About PepsiCo  
PepsiCo products are enjoyed by consumers more than one billion times a day in more than 200 countries and territories around the world. PepsiCo generated nearly $92 billion in net revenue in 2024, driven by a complementary beverage and convenient foods portfolio that includes Lay's, Doritos, Cheetos, Gatorade, Pepsi-Cola, Mountain Dew, Quaker, and SodaStream. PepsiCo's product portfolio includes a wide range of enjoyable foods and beverages, including many iconic brands that generate more than $1 billion each in estimated annual retail sales.

Guiding PepsiCo is our vision to Be the Global Leader in Beverages and Convenient Foods by Winning with pep+ (PepsiCo Positive). pep+ is our strategic end-to-end transformation that puts sustainability and human capital at the center of how we will create value and growth by operating within planetary boundaries and inspiring positive change for the planet and people. For more information, visit www.pepsico.com, and follow on X (Twitter), Instagram, Facebook, and LinkedIn @PepsiCo.

About Cargill
Cargill is committed to providing food, ingredients, agricultural solutions, and industrial products to nourish the world in a safe, responsible, and sustainable way. Sitting at the heart of the supply chain, we partner with farmers and customers to source, make and deliver products that are vital for living. 

Our approximately 160,000 employees innovate with purpose, providing customers with life's essentials so businesses can grow, communities prosper, and consumers live well. With 160 years of experience as a family company, we look ahead while remaining true to our values. We put people first. We reach higher. We do the right thing—today and for generations to come. For more information, visit Cargill.com and our News Center.

Contact: pepsicomediarelations@pepsico.com

¹ Iowa Corn Growers Association. (n.d.). Corn facts and FAQs. Retrieved June 24, 2025, from https://www.iowacorn.org/corn-facts-faq/
DTN Progressive Farmer. (2025, January 10). Traders prepare for busy Friday as USDA releases reports. Retrieved June 24, 2025, from https://www.dtnpf.com/agriculture/web/ag/news/article/2025/01/10/traders-prepare-busy-friday-usda

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SOURCE PepsiCo, Inc.

FAQ

What is the scope of PepsiCo and Cargill's regenerative agriculture collaboration?

The collaboration aims to implement regenerative agriculture practices across 240,000 acres of Iowa farmland from 2025 through 2030, focusing on their shared corn supply chain.

How will farmers benefit from PepsiCo and Cargill's sustainable agriculture program?

Farmers will receive agronomic guidance, incentive payments, and technical resources to support their transition to regenerative practices, helping improve soil health and farm productivity.

What are PepsiCo's sustainable agriculture goals for 2030?

PepsiCo aims to drive the adoption of regenerative, restorative, or protective practices across 10 million acres globally by 2030.

Who will implement PepsiCo and Cargill's regenerative agriculture program in Iowa?

Practical Farmers of Iowa (PFI) will lead the implementation, managing farmer enrollment and overseeing measurement, reporting, and verification of outcomes.

Why did PepsiCo and Cargill choose Iowa for their sustainable agriculture initiative?

Iowa is the United States' largest corn producer, contributing to more than 15% of the nation's supply, making it strategic for PepsiCo's supply chain.