ADM advocates for regenerative agriculture to bolster business and environmental benefits

Archer Daniels Midland (ADM) is intensifying efforts to encourage more farmers to adopt regenerative agricultural practices. This initiative not only aims to improve environmental outcomes but also to open up new commercial avenues across the consumer goods value chain.

Regenerative agriculture, although burgeoning, lacks a uniform legal definition, which has impeded its broader acceptance and investment. To mitigate this, ADM has collaborated with various stakeholders to formulate a standardized yet adaptable definition of regenerative practices. “Since it is so new, it is good for the industry to come together on standardizing what they mean on regenerative agriculture for a couple of different reasons,” Paul Scheetz, director of Climate Smart Ag Origination at ADM, told FoodNavigator-USA. He highlighted the dual benefits of making regenerative practices a viable business opportunity rather than merely a compliance requirement and of fostering consumer demand by clarifying what regenerative agriculture entails.

ADM’s definition of regenerative agriculture emphasizes practices inspired by indigenous land management that adapt to local conditions and culture. It includes five principles: minimizing soil disturbance, maintaining living roots, covering bare soil, diversifying crops, and responsibly managing inputs. “Now, when we design our programs around those five principles, the one thing that we understand is that every commodity and every region has its own story, has its own nuance,” Scheetz explained, acknowledging that not all regions or commodities can adhere strictly to all five principles.

To further support farmers in transitioning to regenerative techniques, ADM has launched the re:generations program, offering incentives and technical assistance. This program, still in its nascent stage but expanding rapidly, aligns with ADM’s strategic goal to reduce carbon intensity within its supply chain, reflecting a broader industry trend toward sustainability.

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The business implications extend beyond the farm. Investing in regenerative practices can significantly reduce Scope 3 emissions, a persistent challenge for consumer packaged goods (CPG) companies aiming to meet stringent environmental targets. Sourcing ingredients from regenerative practices not only aids in achieving these goals but also enhances brand loyalty and can justify premium pricing, as ADM’s Farming for the Future survey indicates over 70% of consumers remain loyal to brands with a strong sustainability narrative.

However, achieving regenerative agriculture’s full potential is not without challenges. It requires time, partnerships, and a willingness to embrace incremental progress over perfection. Scheetz advises stakeholders to be patient and collaborative, emphasizing that successful implementation involves continuous learning and adaptation to meet both environmental goals and farmers’ needs.