Cargill and PepsiCo set for landmark venture on sustainable agriculture

The Cargill has struck a major collaboration with PepsiCo in a bid to further advance regenerative agricultural practices, as the companies seek key sustainable production gains, writes Neill Barston.

According to the global agri-group, the joint venture will positively benefit a total of 240,000 acres of farmland across the net five years.

It will be focused 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, including its brands within the snacking sector, operating brands including Doritos, Ruffles, and Lays crisps, as well as its beverage division.

As the business noted, agriculture, and creating a more resilient agricultural system, is essential to PepsiCo’s business, as the company sources 35 crops and ingredients from more than 60 countries to make its convenient foods and beverages.

Being 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.

Crucially, the initiative will provide farmers with  agronomic guidance, as well as incentive payments to help ensure they deliver on best regenerative farming practices. It is hoped that such strategies will help boost overall productivity levels across the food supply chain.

The joint venture builds on years of successful collaboration  PepsiCo, Cargill, and local farming organisations in working to raise overall standards within agriculture.

Major production
As Cargill noted, Iowa stands as the United States’ largest producer of corn, contributing to more than 15% of the nation’s supply in 2024.

Through trusted local organisations – led by Practical Farmers of Iowa (PFI), a nonprofit group with deep roots in the Midwest farming community – this partnership will 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 partnering across the supply chain – and working with farmers to understand what’s best for their farms – 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.”