PepsiCo–Unilever Soil Health Collaboration Recognized for Supporting Iowa Farmers in De-Risking Regenerative Practices

Partnering Across the Rotation: PepsiCo-Unilever Soil Health Innovation Project Recognized for Efforts to Support Iowa Farmers in De-Risking Regenerative Agriculture Practices

“ Across Iowa, nearly ninety percent of the state's land is devoted to agriculture, where many farmers grow corn and soy for the country's most popular products, from soft drinks to mayonnaise. For much of the past decade, one company, Unilever, has administered one of the longest-running Field to Market Continuous Improvement Projects, partnering with their key supplier Archer Daniels Midland Company (ADM) to support a dedicated cohort of these farmers in advancing soil health practices on their farms. 

But it wasn't until 2018 when a pair of unlikely allies emerged in Unilever and ADM's quest to scale soil health adoption in the region-a distinct brand and supplier, PepsiCo and Cargill. "Unilever and PepsiCo have a unique relationship, but it wasn't until I got to know Margaret Henry at a Field to Market meeting, and we started talking about their sourcing region, that we discovered we had an overlap in Iowa where they source corn and we source soy," recalls Stefani Grant, Senior Sustainability Manager at Unilever. "This is a really unique program to have two completely different suppliers involved like that." 

Taking one landscape-level approach, rather than working separately across two different supply chains, has allowed the companies to integrate their sustainability programs, supporting more than 600 Iowa farmers to date in a joint effort to scale regenerative agriculture across the crop rotation. While the companies may compete for retail shelf space in certain product categories, their relationships have transformed into pre-competitive collaboration when it comes to conserving the health and resilience of our nation's soils. By encouraging farmers to adopt the soil health practices, these unusual partners hope to improve soil health and water quality in Iowa, where nearly ninety percent of land is devoted to agriculture. 

"PepsiCo and Unilever realized that where we wanted to go next with our sustainability program was deeply aligned," shares Margaret Henry, Director of Sustainable Agriculture at PepsiCo. "The more that we can streamline the supply chain ask on sustainability, the more that the farmers can keep their eye focused on what matters-farming."

Uniting Unlikely Allies for Powerful Collaboration

Recognizing outstanding collaboration and cross-sector partnership in advancing continuous improvement in sustainable agriculture at the field and landscape level, this year's Collaboration of the Year Award honors Field to Market members Unilever, PepsiCo, Cargill and ADM for their collective efforts to advance soil health in Iowa. 

Enrolled in Field to Market's Continuous Improvement Accelerator, the PepsiCo-Unilever Soil Health Innovation Project unites unlikely allies, bringing together two distinct companies as well as their suppliers to advance a streamlined approach to supporting Iowa farmers in adopting soil health practices across the crop rotation. 

Since 2013, Iowa has played a key part in the sustainable agriculture strategy for Hellman's and Unilever, delivering progress towards an overarching corporate sustainability goal of sourcing all agricultural commodities sustainably by 2020. 

"I grew up in Iowa, and I joke they took the Midwest girl and put me back in the Midwest to run these programs, because I knew how to talk to farmers and not scare them off," says Grant. "I really enjoy the ability to meet our farmers, learn from them, understand what they're doing and then, with pride, be able to bring in my Hellman's team, showing off my home state and our farmers." 
For farmers, enrolling in this type of continuous improvement project provides an opportunity to leverage their long-standing relationships with local suppliers to build greater trust with consumers and gain visibility into the products their farming supports. 

"I sell the majority of my soybeans to the local co-op, who are a provider to ADM, which provides the soybean oil to Unilever for their Hellmann's mayonnaise," explains Jack Boyer, a participating farmer in the PepsiCo-Unilever project. "And so, the benefits are kind of two way. They're contributing to improving sustainable practices on the farm, and it gives Hellmann's mayonnaise the opportunity to say their oil was sourced from sustainable farms." By coordinating efforts across the corn-soy rotation typical in central Iowa, Unilever and PepsiCo are able to source two distinct ingredients while providing one shared vision for sustainability. Together, they have united disparate supply chains and brought together a wide network of partners, including ADM, Cargill and the Practical Farmers of Iowa (PFI), to support sustainability efforts across a farmer's crop rotation, including cost share programs to support farmers in adopting cover crops-providing comprehensive technical and financial support to strengthen soil health outcomes and bolster farmer livelihoods in the state. 

A soil health practice that reduces nutrient losses to the environment by protecting the soil surface from runoff and erosion, cover crops keep nutrients like nitrogen within the soil-reducing the need for fertilizers, preventing unwanted runoff from reaching local water sources, and improving long-term soil health. A key ingredient in the collaboration's success is the engagement of suppliers who are able to support food and beverage companies in connecting with and engaging farmers through established, local networks of support. 

"In any continuous improvement project, it's critical to have suppliers engaged who have built trusted relationships with growers over time," says Paul Scheetz, commercial manager for ADM Des Moines. "ADM is proud of the role we continue to play in engaging and supporting Iowa farmers to participate in this valuable collaboration and document the impact of their stewardship efforts." 

Investing in soil health improvements for the first time can be risky for many farmers, as there's no guarantee it will pay off economically. 

"For farmers, taking up any new conservation practice is a financial risk that needs to be supported by the right technical and financial partners," agrees Nathan Fries, Sustainability Manager, Cargill. "By bringing together an engaged network of local suppliers and the resources of leading companies, we can provide comprehensive financial support and technical assistance, which helps farmers move in a positive direction." 

These local connections help provide the backbone of the project's success, connecting the major food and beverage companies back to their farmers through trusted, established local supplier relationships. By engaging the entire value chain to row in the same direction towards greater soil health, PepsiCo and Unilever gain a powerful supporting engine as they work towards ambitious and science-based targets on emissions reductions and commitments to scaling regenerative agriculture. 

"Helping farmers be more resilient for the long term is a vision that Unilever shares with all the partners on the project," emphasizes Grant. "That shared vision is what makes our partnership viable."  

 

Shared Risk and Shared Rewards

The collaboration seeks to catalyze systemic change across PepsiCo and Unilever's supply chains by reducing the financial risks which farmers face in adopting soil health practices, while showcasing the joint environmental and economic benefits which practices like cover crops can offer to farmers over multiple years.  "We first started the program really working with our supplier ADM on collecting data, and they are a great partner in helping us recruit farmers into the program," recalls Grant. "And as we evolved, we received some funding from the Iowa Department of Agriculture, and we said to our farmers 'if we have a little bit of extra cost share to help you try cover crops, will you?' And we completely sold out the program." 

With a new vision for incentivizing regenerative practices, PepsiCo and Unilever began to collaborate with local implementation farmer the Practical Farmers of Iowa to help them implement a cost share program blended with the essential technical assistance and peer learning networks for participating farmers. 

"A number of years ago, we met with the PepsiCo team and other supply chain partners to think critically about ways that companies could invest in their farmers on the ground. How could they help farmers add more resilient practices?" explains Sarah Carlson, PFI's Director of Strategic Initiatives. "This cover crop cost share program funnels a little bit of risk mitigation to that farmer to try these new practices on the farm." 

The approach to de-risking adoption for soil health practices has stuck. In 2020, PepsiCo and Unilever provided cost share to more than 500 farmers to plant over 100,000 acres of cover crops across Iowa. The project partners hope that offering this tangible support will promote long term practice adoption, with both partners committing to advancing regenerative practices into the future. 

"We are helping farmers de-risk trying something different that over time adds value for the farmer and the entire food supply chain," explains Henry of PepsiCo. "Many are planting cover crops on acres above and beyond what we cost share." 

"We want to make sure that we're covering those costs and really removing that financial concern for farmers to try something new, then giving them still the technical assistance in the farmer networks to succeed," agrees Grant. 

Grant credits the cost share program with bolstering the program's farm retention, sharing that most farmers have stayed with the initiative as it has grown and evolved over time. And for farmers, the extra support continues to pay off. 

"We get the benefit of incentives that they may be offering, whether it's through planting cover crops, cost share, or whatever the program may be at the time," shares Boyer. "It takes some of the risk out of implementing some of those projects. Learning how to manage it, learning how to get along with it and work through any challenges." 

"Pepsi and Unilever are putting our money where our mouth is," emphasizes Henry. "We're not just committed to addressing climate change. We are actually going out and cost sharing with farmers to help them take the actions that will benefit them and will benefit the climate." 

The project continues to demonstrate supporting farmers to adopt cover crops offer tangible climate benefits. Utilizing the Fieldprint Platform, PepsiCo quantified a 13 percent net reduction in on-farm greenhouse gas emissions, including soil carbon sequestration, from supporting farmers in planting cover crops across nearly 85,000 acres of corn in 2020.

"The more that we can streamline the supply chain ask on sustainability, the more that the farmers can keep their eye focused on what matters-farming."

Margaret Henry
Director, Sustainable Agriculture
PepsiCo

A Credible Approach to Regenerative Agriculture

For PepsiCo and Unilever, the project's journey has evolved to center on scaling regenerative agriculture, demonstrating to farmers that adopting practices from cover crops to no-till can benefit their bottom line while laddering into the companies' ambitious climate goals. 

"Unilever's latest goal is to have net zero emissions for all our products by 2039," explains Grant. "For us, regenerative agriculture principles are a big part of the puzzle of meeting our climate goals." 

On the ground in Iowa, producers have long seen the benefits of these conservation practices. 

"Some regenerative agriculture practices that we do on our farm are no till, cover crops, we're also incorporating small grains back onto our farm currently by growing our own cereal rye for cover crop," explains participating farmer Aaron White. "We've seen these practices increase our soil health, we're seeing better water infiltration, and weed suppression." 

"We have seen the changing climate. We have more frequent and higher intensity rainfalls followed by longer periods of dry," observes Boyer. "Farmers need to be able to survive these kinds of events. Having soil health and soil structure was a benefit that allowed me to have less damage from the 2020 derecho than some of my neighbors did." 

The project partners make use of Field to Market's Fieldprint Platform to provide a credible measurement framework to quantify these benefits, collaborating with farmers involved in the project to analyze the environmental benefits they can achieve with regenerative agriculture practices. 

"The Fieldprint Platform allows me to evaluate the things that are influencing a particular metric whether it be energy use or soil health," explains Boyer. "It gives you an opportunity to evaluate what you've been doing against what you might want to try to change, and to do it in a structure format so that you can make sound decisions." 

"PepsiCo has committed to making progress in regenerative agriculture and improving soil health, improving greenhouse gas," emphasizes Henry. "Field to Market and the Fieldprint Platform are absolutely critical for understanding the kind of change that we're truly making on the ground. We can't know how we're improving against the metric unless we have a credible platform." 

The Platform also provides a powerful tool to demonstrate to farmers the economic benefits which many see when adoption conservation practices, allowing the project to continue to strike a balance between environmental and economic goals. 

"With a Fieldprint Analysis, we can put the results of these practices in terms of greenhouse gases or dollar signs," shares Carlson. "We can provide farmers with a much richer story to see the economics of these practices alongside environmental indicators." "This is an investment in our farmers, an investment in our supply chain and an investment in the Iowa region." Stefani Grant 
Senior Sustainability Manager 
Unilever

Partnering For Change

With nearly a decade of lessons learned, the collaboration's impact continues to grow. This year, partners have increased enrollment in the cost-share program, now engaging more than 600 farmers to plant cover crops anticipated to reach over 250,000 acres across Iowa. And for these engaged Iowa farmers, as well as supply chain partners, the vision of the project looks towards the future. 

"This is a continuous improvement project for us too, so we are always looking for ways to grow," says Grant with a smile. "We're looking at things like how we can work with banks on financing regenerative agriculture, or where can we work with other partners and be creative on helping farmers with these practices long term." 

The partners continually look for opportunities to fine-tune their strategies. In 2019, partners moved away from community-wide recruitment meetings in favor of hosting small gatherings on farms, inviting ten neighbors at a time to come over for pizza and talk about cover crops. The result was a two-fold increase in recruitment the following year. While the pandemic continues to complicate in-person engagements, the project partners remain focused on building community and economic opportunities for participating growers. 

"The farmers we work with are the mentors and leaders in these communities, and they are helping address the challenges of today," says Henry of PepsiCo. "Because issues like climate change are no longer the challenge of tomorrow, these are impacts facing these farmers every single day." "We want to protect these farmers and our supply chains and ensure that they're there in the future," emphasizes Grant, of Unilever. "This is an investment in our farmers, an investment in our supply chain and an investment in the Iowa region."