Image Source: PepsiCo

In a landmark effort to make agriculture more climate-resilient and farmer-friendly, PepsiCo and Cargill have announced a long-term partnership to expand regenerative farming practices across 240,000 acres of corn farmland in Iowa by 2030. Anchored in their shared corn supply chain, the initiative aims to strengthen the environmental and economic sustainability of crop production tied to some of PepsiCo’s most iconic products.

At the heart of this collaboration is Practical Farmers of Iowa (PFI), a farmer-led nonprofit with deep community trust in the Midwest. PFI will serve as the on-ground implementation partner, delivering region-specific agronomic guidance, incentive payments, and measurement frameworks to support participating farmers as they adopt regenerative techniques. These practices are designed to improve soil health, reduce greenhouse gas emissions, and boost long-term productivity—while helping farmers tap into sustainability-driven value chains.

This initiative is more than just a supply chain adjustment; it’s part of a broader shift in how two global food and agriculture leaders are embedding climate goals into core business operations. For PepsiCo, which sources over 35 crops from more than 60 countries, resilient agricultural systems are a strategic imperative. As a key upstream partner, Cargill plays a critical role in aligning farming practices with consumer-facing sustainability targets.

“By working directly with farmers and collaborating across the value chain, we can accelerate the adoption of regenerative practices that improve soil health, yields, and livelihoods,” said Jim Andrew, Chief Sustainability Officer at PepsiCo. “This partnership creates long-term shared value—not just for our business, but for the farmers and ecosystems we depend on.”

The Iowa initiative also supports both companies’ global climate and sustainability ambitions. PepsiCo is working to transition 10 million acres to regenerative, restorative, or protective practices globally by 2030. Cargill has pledged the same acreage goal across North American farmland within the same timeline.

“This partnership is about practical, measurable outcomes—starting where it matters most: the farm,” said Pilar Cruz, Chief Sustainability Officer at Cargill. “Together with PepsiCo and PFI, we’re creating the conditions for regenerative agriculture to thrive at scale.”

Backed by years of collaboration between the three organizations, the Iowa project builds on existing momentum to transform conventional farming into a more adaptive, nature-positive system. Farmers participating in the program will receive tailored technical support and financial assistance to de-risk their transition—along with access to robust reporting and verification systems managed by PFI to ensure credible, science-based impact measurement.

With Iowa contributing over 15 per cent of the U.S. corn supply, this partnership not only supports local communities but also signals a broader market shift toward sustainability-aligned agriculture. It offers a model for how brands, suppliers, and farmers can co-create resilient food systems—where soil health, profitability, and climate ambition go hand in hand.