Walmart and PepsiCo collaborate on $120 million farm sustainability initiative

Bentonville-based Walmart and beverage/snack titan PepsiCo plan to partner over the next seven years to make $120 million worth of investments to support farmers on soil health and water quality programs in the U.S. and Canada.

By establishing and scaling financial, agronomic and social programs, the partners said they aim to enable and accelerate the adoption of regenerative agriculture practices on more than 2 million acres of farmland, or about 0.18% of all U.S. and Canadian farmland. The benefit would deliver approximately 4 million metric tons of greenhouse gas (GHG) emission reductions and removals by 2030 – roughly equivalent to the amount of electricity needed to power 778,300 homes for one year, the release states.

“This collaboration with PepsiCo is a great example of how we are prioritizing the expansion of regenerative agricultural practices among farmers across North America so that we can continue to make quality products affordable and accessible for customers,” said Jane Ewing, senior vice president for sustainability at Walmart.

She said the collaboration seeks to elevate farmer livelihoods, engage them on how to more sustainably manage soil health, increase yields and create a model that others can mimic across other product categories, including encouraging additional investments in regenerative agriculture by other brands.

PepsiCo’s and Walmart’s businesses are dependent on farmers to grow ingredients that are used to make the delicious products consumers enjoy every day, the release states. With a supply chain for the two companies that stretches across North America and involves a large volume of critical crops – including potatoes, oats, corn, wheat, soybeans and rice – sustainability will look different from commodity to commodity, region to region and even farm to farm. The collaboration offers a voluntary, flexible approach to regenerative agriculture that gives farmers a seat at the table, recognizes the diversity of agriculture and that one size does not fit all, the release states.

“From my perspective, embracing regenerative agriculture is essential. It’s good for farmers, not only because it’s beneficial to the environment and our food quality, but also for the profitability of our businesses. If you use less fertilizer and you grow a bigger crop, or if you use less water and can still grow the same size of crop, it strengthens your farm in a way that benefits the bottom line and our environment for generations to come,” Jeff Huffman, owner/operator of Island Farms in Maxwell, Neb., said in a statement.

Jim Andrew, PepsiCo chief sustainability officer, said farmers know their business better than anyone else, and what the companies hear from them is that for regenerative agriculture to make business sense, three things need to happen. He said farmers need economic support, social and cultural support, and agronomic support. This strategic collaboration with Walmart will advance a shared goal to support farmers as they transform farming in a way that benefits the planet and people.

“This effort is a new model for PepsiCo, marking our first, large-scale strategic collaboration focused on sustainable agriculture with a retail partner,” said Steven Williams, CEO of PepsiCo Foods North America. “Farmers are critical to our business, and many of the brands our consumers know and love rely on ingredients that we source straight from the farm. By joining forces with Walmart, we’ll be empowering farmers through education, upfront investment in outcomes, peer coaching and cost-sharing – and hopefully inspiring others to join us.”