PepsiCo, in collaboration with Griffith Foods and Milhão, has launched a direct farmer incentive pilot program to advance regenerative agriculture in Brazil's Cerrado region, one of the world's most biodiverse savannas and a vital agricultural frontier.

The Cerrado region produces substantial volumes of corn and over 60% of Brazil's soybeans. However, the region faces mounting threats from deforestation, soil degradation and climate stress. PepsiCo reports the Cerrado region is one of its highest impact sourcing areas.

The new pilot program introduces a hybrid Payment for Practice and Payment for Outcomes model, directly compensating farmers for adopting regenerative agriculture practices such as composting, biological inputs and reducing chemical fertilizer use. Farmers receive upfront payments to offset the cost of sustainable inputs and then also receive performance-based bonuses for reducing agrochemical applications throughout the season.

"This program tackles one of the biggest barriers to the adoption of regenerative agriculture: the financial risk farmers face when transitioning to new practices," says Thais Souza, sustainability lead at PepsiCo Brazil. "By providing direct economic incentives, we're helping facilitate outcomes such as improved soil health, reduced greenhouse gas emissions, and climate resilience."

The pilot will cover 7,000 acres, with plans to scale to 30,000 acres — PepsiCo's full corn sourcing volume in the region — by year three. The initiative is co-funded by PepsiCo and Griffith Foods, with additional contributions from Milhão. Total investment is expected to reach $1 million by year three.

"At Griffith Foods, we see this collaboration as part of our journey to help nourish the world and transform the food system, an essential part of the climate equation that demands both courage and collaboration,” says Nicholas Costa, regional sustainability director, Griffith Foods Central and South America. “Guided by our 2030 Aspirations, we're turning that vision into action by moving beyond 'do no harm' thinking to embrace a regenerative mindset that restores soils, strengthens communities, and proves that business can truly be a vehicle for greater good. This collaboration shows how science, innovation and shared purpose can turn ambition into a positive impact and help nourish both people and the planet. By sharing costs and aligning on sustainability ambitions, PepsiCo, Griffith Foods and Milhão are demonstrating how competitors can work together pre-competitively with the aim of helping drive systemic change."

Guided by PepsiCo's Climate Resilience Platform — an open-access tool designed to help agricultural stakeholders plan for and mitigate the impacts of climate change — the program targets high-impact, region-specific practices to help strengthen climate adaptation, secure long-term supply and support resilient farming communities.