3 agricultural initiatives to shore up food supply chains

The opinions expressed here by Trellis expert contributors are their own, not those of Trellis.​

Last year, a slew of extreme weather events disrupted agricultural operations, some costing hundreds of billions in damages and financial hardship to farmers and ranchers. Uncertainty loomed amid evolving global regulations and trade policy, and consumer scrutiny of food companies intensified over everything from their ingredients to pricing and product availability.

But as we start off 2026, there is one key resolution food companies can set this year to help navigate supply chain shocks and economic hurdles — and seize new opportunities: Invest in the resilience of their agricultural suppliers.

Resilient and sustainable agricultural projects are needed for the industry and its farmers to stay in business. Our research found that companies face around $253 billion in losses each year because ecosystems are declining, leaving them unable to perform environmental services that farms depend on to be productive The impacts of climate change, pollution, and other forces driving nature loss are harming their ability to maintain the quality and health of soil and water sources. 

The upfront costs and risks of trying out new practices have been big barriers to farmers implementing next generation agriculture methods, such as crop monitoring technology and nutrient management systems. But companies across the industry are seeing these roadblocks as strategic entry points to help farmers in their supply chains make the shift to sustainable agricultural approaches. And, in the process, they’re unlocking real business benefits by ensuring their suppliers will be around in the long run.  

By funding initiatives aimed at conserving water and restoring soil quality, for example, companies can mitigate escalating climate and nature risk while contributing to greater stability across the food industry. That’s because these efforts offer valuable pathways to discover new innovations and test emerging practices in the field. 

All of which are necessary to protect corporate bottom lines and the industry’s future by transforming how food is grown and livestock is raised. With government-backed programs in flux, the role that companies can play in financing resilient agriculture on farms has become even more essential.

For food companies ready to commit to agricultural resiliency in 2026, here’s a look at three existing initiatives that are reaping positive returns for farmers, their investees, and the industry

Soil and Water Outcomes Fund

In a comprehensive program that pools investments and resources from multiple companies including Cargill, McCormick, Ingredion and Coca-Cola, the Soil and Water Outcomes Fund goes beyond simply cost sharing investments with suppliers. Instead, it provides  financial incentives to farmers interested in row crop conservation practices, such as cover cropping and no-tillage, that can improve soil health and reduce erosion. 

Notably, the independent fund also equips participants with extensive technical support and tools, including carbon accounting and advising services, to help foster successful outcomes. Since 2020, 1.7 million acres of farmland across 21 states have been enrolled in the program, and over $55 million in payments have gone to farmers, with an average payout of $33 per acre. In terms of climate impact, 1.4 million metric tons of greenhouse gas equivalents have been cut by participating farmers, equating to removing 304,000 cars from the road for a year, according to the fund. 

Practical Farmers of Iowa

Another approach companies are taking is to focus on specific levers for cutting risks. Funded by PepsiCo and a USDA Advancing Markets for Producers grant, Practical Farmers of Iowa offers a free-for-participation program to farmers that pays for deploying known methods for driving down nitrogen in soil. 

These range from crop rotation, manure application and incorporating livestock grazing into farming systems. Farmers are guaranteed $5 for every acre where nitrogen is reduced and if production yields decrease alongside nitrogen rates, farmers can receive an additional $30 per acre. Practical Farmers of Iowa’s most recent analysis of its network members found the majority of farmers saved money by lowering their nitrogen usage, even if their output dropped. 

Sustainable Dairy PA 

Sustainable Dairy PA is a pilot project backed by The Hershey Co. and Land O’Lakes, its highest volume dairy supplier, that concentrates on going deep locally. The two companies are partnering with the Alliance for the Chesapeake Bay on a  three-year project to help the e surrounding region’s dairy farmers slash  greenhouse gas emissions and improve  water quality. Hershey has committed $300,000 to its local suppliers to fund a range of sustainable farming solutions, from planting riparian buffers that prevent soil erosion and improve wildlife habitats to installing animal waste storage systems. So far, more than 3,000 trees have been planted alongside streams, saving 850 pounds of phosphorus and almost 4,000 pounds of nitrogen from entering Chesapeake Bay waterways. 

These examples demonstrate that corporate investments can pay dividends in successfully encouraging more sustainable practices in their supply chain. But for that to happen, more companies on a larger scale need to participate to effectively safeguard farmers, ranchers and the industry that depends on their resilience — the very food companies that buy from them.