By Stephen Nakrosis
Archer Daniels Midland Co. and PepsiCo Inc. on Wednesday said they entered a strategic commercial agreement to support regenerative agricultural practices in an effort to reduce carbon intensity.
The companies said the 7 1/2-year deal is expected to reach up to 2 million acres by 2030.
The agreement will initially enroll corn, soy and wheat farmers across states in the U.S. Midwest and integrate farmer-first regenerative agriculture initiatives, which will include cover crops, reduced tillage and responsible pesticide use, the companies said. Participants will receive technical and financial assistance, access to peer regenerative farming networks and other resources.
"Reaching the strategic partnership's goals could eliminate 1.4 million metric tons of greenhouse gases -- equivalent to the amount of electricity used to power 275,000 homes per year -- at the farm level, while creating meaningful shared value directly for farmers," the companies said.
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(END) Dow Jones Newswires