PepsiCo is launching a farmer incentive pilot program in Brazil’s Cerrado region to promote the adoption of regenerative agriculture practices.
In collaboration with Griffith Foods and Milhão, a Brazilian company that manufactures non-GMO, corn-based ingredients, the program aims to preserve the Cerrado and benefit farmers through regenerative ag,
The Cerrado region is home to a large portion of Brazil’s corn and soybean supply and is a vital agricultural frontier. It's also one of PepsiCo’s highest-impact sourcing areas. However, the region faces threats including deforestation, soil degradation and climate stress.
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The pilot program will span 7,000 acres and use a hybrid payment-for-practice and payment-for-outcomes model to pay farmers for adopting regenerative agricultural practices. Farmers will receive upfront payments to cover sustainable inputs costs and may qualify for additional compensation based on yield performance while using less agrochemicals.
“This program tackles one of the biggest barriers to the adoption of regenerative agriculture: the financial risk farmers face when transitioning to new practices,” said Thais Souza, sustainability lead at PepsiCo Brazil.
Along with its co-funders, PepsiCo plans to invest up to $1 million in the project and expand it to 30,000 acres — its full-corn sourcing volume — within three years.
