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PepsiCo and Cargill have announced a strategic partnership to implement regenerative agriculture practices across 240,000 acres in Iowa,US, between 2025 and 2030.

The initiative targets the companies’ shared corn supply chain, where Cargill sources from local farmers for ingredients used in PepsiCo products. Iowa, the largest US corn producer, accounts for more than 15% of the nation’s supply.

Through Practical Farmers of Iowa (PFI), a non-profit organisation with deep regional ties, the programme will provide farmers with tailored agronomic guidance and resources to adopt regenerative methods aimed at improving soil health, reducing emissions and enhancing crop resilience. Farmers will also receive incentive payments to offset the risk of transitioning to new practices.

Jim Andrew, PepsiCo's chief sustainability officer, said: "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. This collaboration among PepsiCo, Cargill and PFI creates shared value and long-term sustainability that we believe will strengthen our business today and in the future."

The project supports PepsiCo’s goal to apply regenerative practices across 10 million acres globally by 2030 and Cargill’s target to do the same on 10 million acres in North America. PFI will manage farmer enrollment, provide technical support and oversee measurement and verification to ensure outcomes are science-based.

The companies describe the programme as part of a broader effort to make agricultural systems more sustainable and resilient while improving long-term productivity and strengthening farming communities.