Kellanova and Walmart Launch Regenerative Rice Initiative

Kellanova and Walmart have initiated a partnership to address supply chain emissions and water consumption in rice production through a targeted investment in regenerative agriculture.

Rice farming is known for its high water usage and methane output, yet according to Oxford University, it is a staple food for over four billion people. The collaboration is designed to support farmers in Arkansas, a key rice-producing state in the US.

In conjunction with Indigo Ag, the programme provides a financial premium to participating farmers for each pound (approx. 0.45kg) of rice they produce using specified regenerative methods. These funds are intended to help farmers adopt new techniques such as improved water management, optimised fertiliser application and effective crop rotation strategies.

Advancing sustainable sourcing and farmer support

The initiative aligns with corporate environmental targets and aims to build resilience within the agricultural supply chain.

"Kellanova is committed to building a more sustainable future for our business and the communities where we operate,” says Janelle Meyers, Chief Sustainability Officer at Kellanova. Janelle explains that farmers are essential to Kellanova's food production.

“Our Kellanova Better Days Promise aims to advance sustainable practices and mitigate the impacts of climate change—but we know we can’t achieve our goals without our partners," Janelle says.

"By joining forces with Indigo Ag and Walmart, we’re creating agricultural resiliency that increases farmer revenues, advances climate-smart practices and creates long-term, systemic impact across the value chain.”

Regenerative agriculture itself is a comprehensive approach to farming that prioritises the restoration of ecosystem health, particularly in the soil.

The goal is to enhance biodiversity, improve water cycles and increase the land's resilience to climate change. Common practices include:

• No-till or reduced-till farming to prevent soil erosion
• Planting diverse crops in rotation to avoid monocultures
• Using cover crops to keep soil covered, which helps retain moisture

These methods can help companies lower emissions in their supply chains and offer direct benefits to farmers.

While reduced use of synthetic inputs can lower costs and resilience to extreme weather can decrease crop loss, the initial investment and potential for temporarily reduced yields can be a barrier to adoption.

The financial and environmental impact of collaboration

The joint effort by Kellanova, Walmart and Indigo Ag directly addresses these financial hurdles by helping to fund the transition. Through the Source by Indigo programme, farmers also gain access to resources, data and technical support.

This new co-investment expands on a four-year partnership between Walmart and Indigo Ag, which has been supporting rice farmers who supply Walmart’s Great Value brand.

To date, that programme has reduced emissions for the Great Value brand by more than 37,000 tonnes of CO₂ and conserved over 11 billion gallons (approx. 41.6 billion litres) of water. It has also delivered more than US$900,000 to farmers.

Mikel Hancock, Senior Director, Strategic Initiatives, Sustainability at Walmart, says: “We are excited to see our regenerative agriculture goals becoming reality. Expanding our partnership with Indigo Ag to include Kellanova reflects the scale of impact we can achieve by working together to strengthen supply chains, support farmers and advance environmental stewardship.”

Regenerative rice farming in the US

The focus on rice is notable. According to the USA Rice Federation, Arkansas planted over 1.4 million acres (approx. 567,000 hectares) of rice in 2023, while the US Department of Agriculture reported a total of 2.9 million acres (approx. 1.17 million hectares) planted across the country in 2024.

Conventional rice production is water-intensive, often requiring fields to be continuously flooded to manage weeds. This environment allows microbes to generate methane, a potent greenhouse gas.

According to research from Harvard University, rice cultivation uses 34 to 43% of the world's irrigation water.

Regenerative techniques like the System of Rice Intensification (SRI) and Alternate Wetting and Drying (AWD) can help lessen the environmental impact. SRI involves using younger seedlings and reduced plant density, while AWD irrigation keeps fields wet but avoids continuous flooding.

“We are proud to work with partners like Kellanova and Walmart to create measurable impact for farmers in Arkansas,” says Dean Banks, Chief Executive Officer of Indigo Ag.

“Together, we are building prosperity from the ground up: safeguarding water resources, improving soil health, reducing emissions and supporting farmers.”