When Archer Daniels Midland Company (ADM), a titan in the agrifood industry, embarked on its journey to embrace regenerative agriculture, the concept was largely confined to the realms of organic farming. However, the company’s sustained efforts have seen this sustainable farming approach gain traction and evolve into a mainstream practice with significant implications for the future of agriculture.
The Seeds of Change
It all began modestly in 2012, as Paul Scheetz, ADM’s director of climate smart ag origination, describes it as a “fact-finding mission.” Initially, the initiative wasn’t even labeled as regenerative agriculture but was simply an incentive program for cover cropping. It wasn’t until 2018 that ADM officially launched a pilot program offering incentives to farmers willing to adopt regenerative practices.
At the time, the concept was still a novelty to many within the industry. Scheetz recalls the lukewarm reception from supply chain partners, internal audiences, and government entities. Yet, the biggest shift over the past five years has been the industry’s growing recognition and acceptance of regenerative agriculture as a viable and necessary practice.
Expanding Horizons
The real momentum for ADM’s regenerative agriculture efforts began in 2022 when the company escalated its pilot program to a larger scale across the United States. With over 2 million acres already committed to regenerative practices in 2023, ADM has set an ambitious target to double this figure to over 4 million acres by 2025. This significant increase in acreage reflects both the success of the program so far and the company’s revised aspirations for the coming years.
Defining Regenerative Agriculture
Regenerative agriculture remains a term with varying interpretations across the industry. ADM’s definition emphasizes an outcome-based farming approach that aims to enhance soil health, biodiversity, climate resilience, and water resources while also promoting the economic development of farming businesses. The company outlines five key principles of land management central to this approach: minimizing soil disturbance, maintaining living roots in the soil, covering bare soil, maximizing diversity, and responsibly managing inputs like nutrients and pesticides.
A Tailored Approach to Transitioning
Transitioning to regenerative practices is a complex process, and ADM recognizes that a one-size-fits-all approach is not feasible. Each farm’s unique soil types, climate conditions, and crop choices require customized strategies. ADM works closely with farmers to offset the costs of adopting specific regenerative practices, viewing it not merely as a compliance exercise but as a genuine business opportunity.
The company’s partnerships with organizations like the Farmers Business Network and technical assistance from groups such as Practical Farmers of Iowa and the Minnesota Soil Health Coalition are instrumental in supporting farmers through this transition.
Beyond Carbon Credits
ADM’s strategy extends beyond the immediate environmental benefits of regenerative agriculture. By engaging with a vast network of 60,000 farmers across the US, ADM leverages its existing relationships to foster a supportive environment for regenerative practices. The involvement of downstream partners such as Nestlé and PepsiCo is crucial, as they help fund the program and integrate the value of regenerative agriculture throughout the supply chain.
These partnerships are proving to be more impactful for farmers than participating in carbon credit programs, as they can directly see the fruits of their labor being valued by major companies in their supply chain.
Looking Ahead
As ADM continues to expand its regenerative agriculture initiatives, it plans to enter new geographies and commodities. While the focus has been predominantly on corn and wheat in the US, the company’s portfolio includes a diverse range of crops like peanuts, canola, and cotton.
However, challenges remain, including the need for more research to understand the uncertainties around carbon sequestration and reduction. ADM is committed to increasing collaboration across the supply chain to address these challenges, improve outcomes, and enhance transparency.
The long-term vision for ADM is to engage with every farmer in its network about regenerative agriculture, acknowledging that while it may not be suitable for every acre or every farmer, the conversation is critical. Through continued dialogue and shared learning, ADM aims to champion regenerative agriculture as a cornerstone of sustainable farming for the future.