Big Brands Scale a Regenerative Breakthrough in US Rice Farming

A multi-year Walmart and Indigo Ag effort shows real gains in rice, now expanding with Kellanova to push regenerative farming further

12 Dec 2025

Walmart and agricultural technology company Indigo Ag are expanding a regenerative rice farming programme in Arkansas after early results attracted backing from Kellanova, the US food group behind brands such as Kellogg’s and Pringles.

The initiative, launched several years ago as a pilot, aims to test whether so-called climate-smart practices can be scaled across commercial supply chains. Rice was chosen as the focus because of its high water use and methane emissions. Kellanova’s decision to join signals growing confidence among large food companies that the approach can deliver measurable outcomes rather than small, isolated gains.

Farmers participating in the programme use Indigo Ag’s digital platform, which tracks changes in irrigation methods, fertiliser application and soil management. Those adjustments are converted into verified environmental data, which is then used to calculate incentive payments.

According to companies involved, the programme has already delivered tens of thousands of tonnes of carbon reductions, saved billions of gallons of water and paid close to $1mn directly to growers. These results helped persuade Kellanova that the model was ready to move beyond a pilot phase.

Supporters say the scheme addresses a central challenge in regenerative agriculture: farmers are often encouraged to change practices without a clear financial return. In this case, payments are linked to measured outcomes rather than pledges. Growers receive technical support and compensation, while retailers and food manufacturers gain clearer visibility into their supply chains and progress towards sustainability targets.

Executives argue the implications extend beyond rice. Indigo Ag says credible data and incentives are essential to driving farmer-led change at scale. Walmart has described regenerative systems as critical to long-term sourcing resilience as climate risks increase. Kellanova said its participation reflects rising consumer scrutiny over how ingredients are produced.

The approach has also drawn scepticism. Critics have raised concerns about data ownership and privacy, and about whether incentive levels can be sustained if demand for environmental credits rises sharply. Independent verification outside company-led reporting remains limited, though efforts are under way to strengthen oversight.

Even so, the programme’s backers say interest is building. If the Arkansas rice effort continues to deliver consistent results, it could offer a template for how large buyers, technology providers and farmers share costs and benefits, using market incentives rather than regulation to drive change.