PepsiCo To Invest $216m Into US Regenerative Agriculture

The collaborations will assist PepsiCo in meeting its pep+ targets, which include driving the adoption of regenerative agriculture practices across 7 million acres by 2030 and achieving net zero emissions by 2040.

PepsiCo has announced plans to invest $216 million in regenerative agriculture projects across 3 million acres of farmland in the United States.

The strategy entails multi-year collaborations with Practical Farmers of Iowa (PFI), the Soil and Water Outcomes Fund (SWOF), and the Illinois Corn Growers Association (ICGA).

The initiative aims to reduce and remove three million metric tons of greenhouse gas (GHG) emissions by 2030.

The collaborations will assist PepsiCo in meeting its pep+ targets, which include driving the adoption of regenerative agriculture practices across 7 million acres (roughly the size of PepsiCo's agricultural footprint) by 2030 and achieving net zero emissions by 2040.

According to Margaret Henry, Senior Director, Sustainable Agriculture Strategy and External Engagement at PepsiCo, funding will be allocated to a variety of projects, ranging from upfront cash payments to farmers to cover the cost of cover crop seeds to education projects.

"The vast majority of the money will go directly to farmers, whether to cover upfront costs or through outcomes-based payments, in which you get paid based on how much carbon you sequester, how much water quality improves, and so on," she said.

"Farming is extraordinarily difficult, so PepsiCo is putting our money where our mouth is and partnering with farmers to help them try new things that we expect to deliver a return," she explained.

"So that might be from nitrogen reduction, which has an obvious payback, especially with the cost of fertilizer these days. And perhaps you won't need as much pesticide or herbicide with cover crops and rotation. Long-term, healthier soil means stronger crops with fewer inputs, and once it gets going, it's a virtuous cycle. However, good agronomic advice is required to make that happen."

"It will take many of us to shift the system, and it will take the government collaborating with the private sector, the feed world, the fuel world, and the food world to truly shift the entire system towards regenerative agriculture so that these practices become the norm, not the exception," she added.

-AFN

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