PepsiCo Announces $216 Million Investment in Long-term Partnerships with Three Major Farmer-facing Organizations to Support Regenerative Agriculture Transformation on More than Three Million Acres of U.S. Farmland

Practical Farmers of Iowa, Soil and Water Outcomes Fund, and the Illinois Corn Growers Association partner with PepsiCo to drive adoption of regenerative agriculture practices and reduce carbon emissions

PURCHASE, N.Y., March 21, 2023 /PRNewswire/ -- PepsiCo today announces a $216 million multi-year investment in long-term, strategic partnership agreements with three of the most well-respected farmer-facing organizations – Practical Farmers of Iowa (PFI), Soil and Water Outcomes Fund (SWOF), and the IL Corn Growers Association (ICGA) – to drive adoption of regenerative agriculture practices across the United States. The combined impact of these three strategic partnerships is expected to support the accelerated uptake of regenerative practices on more than three million acres and deliver approximately three million metric tons of greenhouse gas (GHG) emission reductions and removals by 2030.

PepsiCo will work alongside these trusted organizations to establish and scale financial, agronomic, and social programs that enable the transition to regenerative agriculture practices through education, upfront investment in outcomes, peer coaching and networking, and cost-sharing.

Driven by PepsiCo Positive (pep+), the company's strategic, end-to-end business transformation, PepsiCo's strategic investment in PFI, SWOF and ICGA is essential to supporting the U.S. farming community as it makes changes that aim to secure production volumes and mitigate the impacts of climate change, while still cultivating quality, bountiful crops to feed the world's growing population.

"As the climate crisis continues to escalate, the threat to our food system increases as well," said Jim Andrew, Chief Sustainability Officer, PepsiCo. "It's critically important to partner, for the long term, with organizations that have earned the trust of farmers as they make the transition to adopt climate-smart agriculture practices. We intend to be shoulder-to-shoulder with farmers as they work to make soil healthier, sequester carbon, improve watershed health and biodiversity, and improve their livelihoods."

Through these partnerships, by 2030, PepsiCo will work with PFI to reach approximately 1.5 million acres; SWOF to reach nearly 1 million acres; and the ICGA to reach approximately 600,000 acres. Based on progress to date, these collaborative efforts are expected to deliver more than 500,000 regenerative acres by the end of 2023.

"We are excited to expand our partnership with PepsiCo and farmers in its supply chain to support the adoption of regenerative agriculture practices that have measurable impacts on soil health, the environment, and farm sustainability," said Adam Kiel, managing director of the Soil and Water Outcomes Fund. "By providing high-quality and customized agronomic assistance to farmers implementing new practices we help them reduce emissions and nutrient loss, unlock a new revenue stream, and increase the value of their farmland for current and future generations."

"PFI farmers have known for years that a supply chain that encourages farmers to grow only a couple of crops is not sustainable – it's not diverse or resilient enough for our changing world," said Sally Worley, Executive Director, Practical Farmers of Iowa. "The PFI model is proven – when we plug farmers into our powerful network and connect them with a peer network, educational resources, funding and technical support, they're able to build more resilient farms. We're excited to continue partnering with PepsiCo and look forward to working together to create a more diversified and resilient agriculture."

"Farmers in Illinois want to make the best decisions for the resources in their care. They are invested in protecting and preserving their farms to pass something on to the next generation that is better than what they received. Sometimes, the heavy risk of new conservation practices gets in the way, but PepsiCo's partnership helps to lessen some of the risk involved for farmers to try a new practice and that will make a big difference," said Dirk Rice, Philo, IL farmer leader of ICGA.

As the largest food and beverage company in North America, and second largest globally, a resilient food system is essential to PepsiCo's business and its ability to meet its ambitious pep+ targets which include driving the adoption of regenerative agriculture practices across 7 million acres – approximately the size of PepsiCo's agricultural footprint – by 2030 and achieving net-zero emissions by 2040.

For more information about PepsiCo's commitment to positive agriculture, please click here.

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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 more than $86 billion in net revenue in 2022, 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 planet and people. For more information, visit www.pepsico.com, and follow on Twitter, Instagram, Facebook, and LinkedIn @PepsiCo.  

PepsiCo Cautionary Statement
Statements in this release that are "forward-looking statements" are based on currently available information, operating plans and projections about future events and trends. Terminology such as "aim," "anticipate," "believe," "drive," "estimate," "expect," "expressed confidence," "forecast," "future," "goal," "guidance," "intend," "may," "objective," "outlook," "plan," "position," "potential," "project," "seek," "should," "strategy," "target," "will" or similar statements or variations of such words and other similar expressions are intended to identify forward looking statements, although not all forward-looking statements contain such terms. Forward-looking statements inherently involve risks and uncertainties that could cause PepsiCo's actual results to differ materially from those predicted in such forward-looking statements. Such risks and uncertainties include but are not limited to: damage to PepsiCo's reputation or brand image; water scarcity; disruption of PepsiCo's manufacturing operations or supply chain, including increased commodity, packaging, transportation, labor and other input costs; climate change or measures to address climate change; failure to comply with applicable laws and regulations; and potential liabilities and costs from litigation, claims, legal or regulatory proceedings, inquiries or investigations..

For additional information on these and other factors that could cause PepsiCo's actual results to materially differ from those set forth herein, please see PepsiCo's filings with the Securities and Exchange Commission, including its most recent annual report on Form 10-K and subsequent reports on Forms 10-Q and 8-K. Investors are cautioned not to place undue reliance on any such forward-looking statements, which speak only as of the date they are made. We undertake no obligation to update any forward-looking statement, whether as a result of new information, future events or otherwise.

About Practical Farmers
As a non-profit organization with more than 6,000 members, PFI equips farmers to build resilient farms and communities. We create learning opportunities via farmer-led events, on-farm research and educational content through our robust network of farmers. We also provide funding and technical assistance to help farmers adopt regenerative farming practices and grow farm businesses. Our vision is an Iowa with healthy soil, healthy food, clean air, clean water, and resilient farms and vibrant communities. To learn more, visit http://practicalfarmers.org

About the Soil and Water Outcomes Fund
The Soil and Water Outcomes Fund provides cost effective solutions for soil and water stewardship, using the leading biophysical models and scientifically rigorous approaches to quantify carbon sequestration and water outcomes while providing technical assistance to aid growers on their journey to increase profitability through sustainability. During the past two years, the Soil and Water Outcomes Fund enrolled 240,000+ acres across 9 states and provided an average financial incentive of more than $31 per acre to farmers to implement new regenerative agriculture practices that reduce greenhouse gas emissions and improve water quality. The Soil and Water Outcomes Fund is a partnership of AgOutcomes, a subsidiary of the Iowa Soybean Association, and ReHarvest Partners, a subsidiary of Quantified Ventures. To learn more, visit https://www.theoutcomesfund.com.

About the IL Corn Growers Association
IL Corn Growers Association is a state-based organization that represents the interests of corn farmers in Illinois, maintaining a high profile on issues in Washington, DC, and Springfield, IL. Through grassroots advocacy, ICGA creates a future for Illinois farmers in which they can operate freely, responsibly, and successfully. In order to fulfill this mission, the organization conducts governmental affairs activities at all levels, market development projects, and educational and member service programs. For further information regarding their work and involvement, visit their website www.ilcorn.org.

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SOURCE PepsiCo, Inc.