While there’s been plenty of talk and promises among worldwide food companies jumping on the regenerative agriculture bandwagon, there’s a profound lack of action on their pledges.

A report from the British investor network FAIRR Initiative indicates 64% of the 79 global food and retail giant publicly listed companies who’ve talked on the record about the benefits of regenerative ag failed to formally adopt plans to achieve those ambitions.

Soil health and carbon-related outcomes are the two most-cited sustainability outcomes cited by food companies, followed by improving water use and quality, biodiversity and reduced use of agrochemicals.

In a Sept. 21, 2023, AFN & AgFunder article, Elaine Watson notes only 8% of these companies have established financial targets to support farmers in adopting regenerative ag practices. A few notable exceptions are Nestlé, PepsiCo, JBS, Danone, General Mills, Walmart, Sodexo and Mondelēz International.

Most regenerative ag initiatives adopted to date focus on carbon removal or sequestration, soil health (soil organic matter, water-holding capacity, micro/macronutrients), biodiversity, watershed health (more efficient use of water and reducing pollution) and farmer livelihoods.

“Without adequate support for farmers, there can be no successful regenerative agriculture,” says Jo Raven, FAIRR’s director of thematic research and corporate innovation. “Transitioning from conventional practices toward regenerative practices creates risk for farmers as it will likely require significant upfront investment, such as new machinery, agronomic support and experimentation, and could impact short-term productivity for farms.”

Measurable Targets Needed

The lack of a clear universally accepted definition of regenerative ag makes company claims hard to substantiate. This creates risk in terms of incoming regulation and reporting as investors look for measurable targets that match each firm’s stated ambitions.

While “regenerative” is the buzzword of the day in food marketing, the industry isn’t yet ready to add “made with regenerative ag crops or meat” to food labels.

Even as many multinational food giants have issued numerous press releases and endless talk about their “total commitment” to regenerative ag, it’s currently impossible to measure what progress they’re making or to hold them accountable for reneging on their promises, says FAIRR founder Jeremy Coller. 

In fact, some food industry experts are questioning whether the “regenerative” term could risk becoming the new “natural,” which has been called the most meaningless word today in food marketing.

“It’s definitely a risk,” says Margaret Henry, senior director, sustainable agriculture strategy and external engagement at PepsiCo. Their company focus is on outcomes, she says, rather than on the particular technologies involved with how farmers adopt regenerative ag practices.

Already pumping $216 million into regenerative agriculture projects on 3 million acres of U.S. farmland, Pepsi is seeking measurable results with carbon, soil health, biodiversity, watershed health and farmer livelihoods.

Most of this Pepsi money goes directly to farmers, whether it’s to cover upfront costs or through outcomes-based payments, where farmers get money depending on how much carbon they sequester, how much water quality improves and so on, adds Henry.

Regulatory Concerns

 At this time, there’s more pressure in Europe and the United Kingdom than in North America to regulate regenerative ag. By 2026, a European Union Green Claims Directive will obligate food companies to substantiate their environmental claims. And the penalty for non-compliance can reach as high as 4% of annual sales if marketing efforts are declared to be misleading

While the term regenerative ag is fairly new, no-tillers know the concepts are not. The tools of  regenerative farming include no-till, strip-till, cover crops, diverse rotations and livestock grazing — practices no-tillers have used for years. Once again, it shows no-tillers are the true innovators in American agriculture.

And if food companies truly want to help growers successfully move to regenerative ag and accomplish more than a PR trick or a word-smithed environmental social governance statement for their website, tell them to give us a call here at No-Till Farmer and the National No-Tillage Conference. Education and knowledge sharing — at the producer level— is where ROI can be guaranteed.