The EU’s Common Agricultural Policy (CAP) is grounded in the recognition that people, land, and society are deeply interlinked. But today, that connection is under strain. Farmers face mounting pressure from extreme weather, rising input costs and increasing regulatory complexity. Against this backdrop, the upcoming CAP reform is a pivotal moment, one that must deliver real outcomes to future-proof European agriculture.
To do that, policymakers should focus on three clear priorities: enabling co-investment between the public and private sectors; ensuring payments are simpler and rewarding farmers for what really matters; and equipping farmers with tailored support beyond payments. This is the foundation for a CAP that truly supports food security, climate action, and farmer livelihoods, while keeping food affordable for consumers.
By aligning around these priorities, the CAP can move beyond being just a rulebook for farmers and become a framework that brings together everyone involved in sustaining and shaping our food future, balancing agricultural progress with care for the environment and our communities. At PepsiCo, we see the impact of these policies up close, starting from the very first step of our value chain. Across the EU, we work with over 800 farmers to source key agricultural crops and ingredients, including potatoes, corn and oats. These ingredients are the backbone of iconic brands like Lay’s, Doritos, and Quaker, which rely on thriving farming communities and sustainable agricultural practices. Their success is our success. And so is their sustainability.
But I can also see that today’s farmers face an uncertain future. With the EU standing at a crossroads, we have to rethink how to support food security, respond to climate impacts and deliver more equitable outcomes for farmers, while keeping food affordable and accessible for consumers.
That’s why CAP reform matters now. Done right, the CAP can become a global model for a public-private partnership that drives meaningful and measurable progress across the full agri-food value chain.
On PepsiCo’s part, we remain committed to being a constructive partner in support of a more competitive, resilient and sustainable food system — based on regenerative agriculture. This approach uses science-based farming practices that aim to restore ecosystems by improving soil health and fertility, reducing emissions, enhancing water quality and protecting biodiversity while also supporting farmer livelihoods. For example, in Jaén, southern Spain, we recently launched ‘Viva Oliva’ to support local olive growers, many of whom have been working in this historic trade for generations. Through this project, we’re providing hands-on training from agronomy experts so that farmers can protect the ecosystem more efficiently and conserve vital resources.
Crucially, these practices also create new opportunities, ensuring that farming can continue to be a viable option for the next generation. In 2024 we sourced 100 percent of the olive oil for our Alvalle gazpacho brand from Jaén, securing a high-quality local supply for Alvalle while strengthening the role of farmers in our supply shed.
We’re investing in innovative techniques that bring life back to the land because it is the right thing to do for our business, for the farmers we work with and for the planet.
Viva Oliva is just one of the many projects that’s helped us spread regenerative agriculture across a total of 3.5 million acres (approximately 1.4 million hectares) of farmland. Recently, we extended our target and are now aiming to reach 10 million acres (around 4 million hectares) globally by 2030.
We’re also taking action further upstream through partnerships with fertilizer companies like Yara, equipping farmers with precision tools to improve nutrient efficiency, increase yields and lower the carbon footprint of their crops. This collaboration supports approximately 1,000 farms across the EU and the UK that supply key ingredients for Lay’s and Walkers, covering around 128,000 hectares. By 2030 the partnership aims to reduce fertilizer production emissions by up to 80 percent and in-field fertilizer emissions by up to 20 percent, helping scale regenerative practices while supporting farmer productivity.
Recently, we extended our regenerative agriculture target and are now aiming to spread these practices across 10 million acres of farmland globally by 2030.
I know that we have the expertise and ambition to meet these goals, but we can’t do it alone. To make this a reality, we need EU policymakers to deliver a coherent and enabling regulatory framework that’s fit for purpose, based on three guiding principles.
Firstly, policymakers must match ambition with investment. Strong public funding is essential, but the CAP should be reimagined to enable co-investment through blended finance models, where public and private capital work together to accelerate impact. Private investment should be results driven, allowing trusted private-sector partners, who operate at size and scale, to co-design solutions with farmers.
Secondly, payments should be simpler and pay farmers for what really matters. This requires rewarding farmers not just for compliance but also for delivering real, measurable environmental benefits such as healthier soils, lower emissions, cleaner water, and richer biodiversity. Farming is unlike most other businesses, with income around 40 percent lower than non-agricultural income,1, which is why CAP incentives must reflect the true costs farmers face, including machinery upgrades and land-use shifts. And the system should incentivize progress over perfection — farmers who are already taking action should be compensated accordingly.
Thirdly, the CAP must recognize that farmers need support beyond payments. Investing in climate information systems, knowledge sharing networks, rural infrastructure and novel technologies will help accelerate and scale the implementation of new techniques — while ensuring profitability. Travelling across Europe to meet our teams on the ground, I see firsthand how local needs differ, so farmers should also be free to choose the solutions that are best suited to their region and crops to ensure policies are impactful.
“Done right, the CAP can become a global model for a public-private partnership that drives meaningful and measurable progress across the full agrifood value chain.
And PepsiCo is committed to being part of that solution. Together with like-minded partners, we’re fully committed to growing food in a way that revitalizes the earth, supports farmer livelihoods, and feeds a growing population.
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