Danone North America has signed an agreement with US-based financial services firm rePlant Capital to help its farmer partners with funds for conversion to regenerative agriculture.

Danone North America

Danone North America has signed a deal with rePlant Capital for regenerative farming. Credit: Johannes Plenio/Pixabay.

Danone North America has signed an agreement with US-based financial services firm rePlant Capital to help its farmer partners with funds for conversion to regenerative agriculture.

Under the terms of the agreement, rePlant Capital will invest up to $20m to assist Danone North America’s farmer partners with expenses associated with the transition to organic farming practices.

Danone stated that the practices will boost biodiversity, improve ecosystems and enrich soil.

The company and its partners’ aim to combat climate change, is a part of their broader commitments.

Danone CEO Mariano Lozano said: “As a company that is passionate about climate activism, we are pleased to be partnering with rePlant to support our farmers and bring new, innovative financial solutions to address climate change.

“Providing these loans mitigates the financial stress that transitioning to regenerative and organic farming practices places on our farmers and allows them to focus their energy on driving sustainable agriculture on their farms.”

In 2018, Danone North America had committed to invest $6m in soil health research over a period of five years.

The research will assist the company to help its farmer partners regarding farm management and use of regenerative agriculture practices on their farms.

rePlant Capital co-founder and partnerships director Robyn O’Brien said: “At rePlant, we are dedicated to investing integrated capital into food companies operating from soil to shelf in order to reverse the effects of climate change.

“When we look at the work Danone North America and its network of farmers are already doing in the area of regenerative agriculture, it is clear they share our commitment to improving soil health.

“We are very excited to work together to make conversions to regenerative and organic farming practices more accessible for Danone North America’s farmer partners and drive sustainability across American farms.”

Danone North America has provided its first loan to Kansas-based McCarty Family Farms.

MVP dairy co-owner McCarty Family Farms is a partner of Danone North America for nearly 10 years.

The McCarty family will use the loan to install moisture probes on cropland surrounding their dairy.