ADM's Regenerative Agriculture: Progress and Future Plans

Current Initiatives in Regenerative Agriculture

ADM has expanded its regenerative agriculture program to over 2.8 million acres in 2023, surpassing its goal, and aims for 5 million acres by 2025. The company has launched initiatives in Europe and Latin America, partnering with growers to support sustainable agriculture and earning recognition from prestigious awards.

"Launch of regenerative agriculture initiatives in Europe, Latin America accelerate global progress as company works toward 3.5 million acres in 2024 ADM (NYSE:ADM) announced today that its global regenerative agriculture program expanded to more than 2.8 million acres in 2023, exceeding its 2 million acre goal." --- (ADM, press release, 2024/04/30)

"ADM expanded its regenerative agriculture efforts to new regions, launching programs in Europe and Latin America." --- (BG, press release, 2024/05/30)

""It's the same for ADM: Regenerative agriculture is a great example of how we are partnering with growers to support agriculture, strengthen our global food system and meet growing and evolving commercial demand while living up to our purpose and building a brighter tomorrow."" --- (ADM, press release, 2024/07/22)

"ADM recently announced that its global regenerative agriculture efforts reached more than 2.8 million acres in 2023, and that the company had increased its 2025 goal to 5 million acres." --- (ADM, press release, 2024/06/13)

"ADM's innovative, farmer-centric approach to regenerative agriculture successfully delivered more than 2.8 million acres in 2023, and has earned honors including positions as finalists in the 2023 Reuters Responsible Business Awards and the 2024 Fast Company World Changing Ideas Awards." --- (ADM, press release, 2024/07/22)

Key Partnerships and Collaborations

ADM is enhancing its regenerative agriculture efforts through strategic partnerships with local educational institutions and workforce development groups, while also fostering diverse and impactful community relationships.

"We look forward to strengthening these partnerships and advancing our mission of economic vitality and community well-being. Solugen has initiated collaborations with local educational institutions and workforce development groups, including Marshall Public Schools, Minnesota West Community and Technical College, Southwest Minnesota State University (SMSU), Southwest Minnesota Private Industry Council, and Marshall Chamber of Commerce." --- (ADM, press release, 2024/04/11)

"Enriching Lives From philanthropic work, to an unwavering commitment to human rights, to continued focus on fostering a workforce that encompasses diverse backgrounds, experiences and perspectives, ADM works to make a positive and lasting impact in the lives of our colleagues, our partners and the communities in which we operate." --- (ADM, press release, 2024/05/14)

Technological Advancements and Innovations

ADM is accelerating agritech innovations to meet sustainable agriculture demands, focusing on productivity and innovation to counter market challenges. Emerging technologies and novel ingredients are set to revitalize the industry, though significant impacts may not be visible until after 2024.

"To meet the rising demands for sustainable agriculture, agritech innovations are accelerating." --- (ADM, press release, 2024/05/17)

"They adopt when it makes financial sense, and given the double or sometimes even triple crop rotations they're able to achieve, the payback for much of our technology and equipment is significantly faster than in the North American market." --- (DE, earning call, 2024/Q2)

"We're focusing the organization on a combination of productivity and innovation to help offset increasingly challenging market conditions based on growing commodity supply." --- (ADM, earning call, 2024/Q1)

"Josh Jepsen: Yes, Rob. The one thing I would add is I think the other -- the piece that gives us confidence as well is no matter where the customer is in that ladder, whether they're the first owner or the fifth, there's a strong desire to keep upgrading technology, become more productive, more efficient and be able to execute those jobs in tighter time frames." --- (DE, earning call, 2024/Q2)

"And there's a lot of exciting stuff that the industry is doing. Listen, there is a lot of emerging technologies, novel ingredients and new culinary techniques that will come to revitalize that demand over time, but that's a shift that we're going through and you're not going to see that in 2024." --- (ADM, earning call, 2024/Q1)

Impact on Sustainability and Environmental Goals

ADM's regenerative agriculture practices significantly contribute to sustainability and environmental goals by promoting water conservation, biodiversity, and climate change mitigation. Their decarbonization strategy, aligned with Strive 35 goals, further emphasizes reducing greenhouse gas emissions and enhancing low carbon intensity products.

"In addition to integrating sustainability and stewardship criteria throughout its product development processes, the company continuously evaluates how its products promote key areas of sustainability on the farm, including climate resilience, water use efficiency, biodiversity protection, soil and plant health, and compatibility with regenerative agriculture practices." --- (FMC Corporation, press release, 2024/05/23)

"ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (Continued) Environmental and Social Responsibility The Company’s policy to protect forests, biodiversity, and communities includes provisions that promote conservation of water resources and biodiversity in agricultural landscapes, promote solutions to reduce climate change and greenhouse gas emissions, and support agriculture as a means to advance sustainable development by reducing poverty and increasing food security." --- (ADM, sec filing, 2024/Q1)

"Actually, across ADM, we have a decarbonization strategy, driven partly by our Strive 35 goals that we need to decarbonize ourselves, part driven by our customers and the need for either awaiting Scope 3 emissions from the side of our customers, but also by providing some low carbon intensity characteristics of some of our products that has also commanding a premium out there." --- (ADM, earning call, 2024/1-31)