A year in the life of aregenerative agriculture
transformation.

The agriculture sector andthose of us that work in
it – from farmers to foodproducers to consumer brands– have a huge role to play intackling two of the biggest
challenges facing our world.
The first challenge is ensuring we can feed agrowing global population, the other is doing
so while adapting to a changing climate thatis making food production more difficult andless reliable. At the same time, the agri-foodsector is projected to generate 196 million
tonnes of greenhouse gas emissions by 2050,
which plays a significant role in accelerating
this negative cycle.1 We need large-scale andhigh-impact interventions to address theseinterlinking challenges, and the agriculture
sector has the power and responsibility to playa major role in the solution.

quality by improving and restoring soil health,water-use and quality, enhancing biodiversity,and reducing the impact of agro-chemical
products on the environment. At the sametime, regenerative practices can help reducethe carbon impact of farming throughreduced on-farm emissions and the potential
for locking or sequestering carbon in the soil.
Regenerative practices combine traditionalfarming methods that are aligned with naturalprocesses, with new innovation, technology
and management practices. The aim is to
produce high-quality and reliable yields
while tackling the food system and climate
challenges we face.
Adopting regenerative practices comes withchallenges and opportunities. Identifying
best practices that are scalable and easily
adoptable by farmers across the world is vital.
However, this can only be achieved throughcollaboration – full system change involving
farmers, scientists, agronomists, educators,
food producers, financers and consumer
brands all working together.

Transforming the way we produce food will
mean significant but achievable adjustments
to how we farm. This new approach canbroadly be called regenerative agriculture,a term that we at McCain define as an
ecosystem-based approach to farming thataims to improve farmer resilience, yield, and2

McCain’s approach to regenerative agriculture
At McCain, we rely on a dependable andhigh-quality potato harvest every year.
To support this critical business need, we are among the leading global
food producers embracing regenerative agriculture. Our potato farmers– a network made up of more than 3,500 direct relationships across theworld – are vital to this transformation. By 2030, we aim to have 100% of
McCain potato acres implement our ‘Onboarding’ level of regenerative
agriculture practices, and 50% reaching the ‘Engaged’ level.2
A key tool in this ambition is our Regenerative Agriculture Frameworkthat outlines core regenerative principles and outcomes for farmers
and the food system. The Framework contains high-level pathways
for farmers to make incremental progress towards farming
regeneratively in their own specific circumstances. Throughout thistransition period, we at McCain, including our field representatives
and agronomists who are all trained in regenerative practices,support our farmers through a combination of technical, financial
and educational resources. The goal is to help farmers become
more resilient and competitive for the long term.

Our 500-acre Farm of the Future at McCain’s home in New
Brunswick, Canada, focuses on Northern hemisphere practices,while our Farm of the Future Africa, located in Lichtenburg, South
Africa, explores Southern hemisphere approaches. As well as creating
a better understanding of regenerative agriculture practices and theirimpact, both farms seek to reimagine the way we grow a potato thatis better for both farmers and the planet.
This Deep Dive highlights a year on a regenerative farm, based on ourwork at our Farm of the Future Canada but also reflecting the wider
experience of an annual regenerative farming cycle. Alongside, wehave picked out specific experiences in the southern hemisphere at
Farm of the Future Africa, as well as highlighting the perspectives andinsights from some of our research, finance, commercial and farmer
partners. With this exploration we aim to bring the regenerativetransition to life, building understanding and uptake and we invite
others to join with us in helping create the future of our food system.
Philippe Thery
Chief Agriculture Officer

Key Regenerative Agriculture Principles
Ensure farm resilience

Armour soils, preferably withliving plants

Enhance crop andecosystem diversity

Minimize soil disturbance

Reduce agro-chemical
impact & optimize water use

Integrate organic andlivestock elements

Our Farms of the Future program is another way we are supporting
the transition to regenerative agriculture. This comprises two (soonto be three) innovative farms that are helping determine, scaleand showcase best practice in regenerative farming. These farms
undertake new research and trial technologies, working with partners
to take risks, make mistakes and eventually overcome any challenges
so our farmers don’t have to. We pass on all our knowledge andoutcomes to our partners, but also more widely to the industry.

3This Deep Dive explores
an annual regenerative
agriculture cycle basedon our work at McCain’s
Farm of the Future
Canada, but also features
insights from McCain’s
Farm of the Future Africa
and the experiences ofsome of our key partners.
Each of the six sections of the Deep
Dive, shown in the outer circle on thispage, explores a two-month period
throughout the year. The inner circleof the diagram describes some of
the key activities on the farm ineach month, which are exploredin more detail in the pages ahead.

January & February

November &DecemberProtecting the soil over winter to
set strong foundations for the year

Measuring outcomes,
innovation andfuture planning

September &OctoberHarvesting
the potatoes
and assessing
the yield•C ollect data andassess progress• Farm maintenance•P lan for the future

protect the soil•E mbed covercrop seeds into
the soil during
harvest•A ssess yield

A year in the lifeof a regenerative
agriculture
transformation.

•M onitorgrowing conditions• Irrigate the soil
• Livestock naturally
fertilizes fields

 lick button to goC
to specific section•C over crops•C hoose potato
varieties•B uy and size seeds•P repare soil using
Controlled Traffic
Farming system

March &
April
Preparing forplanting withminimum soil
disturbance• Plant potatoes
and other rotational crops• Minimally fertilize crops• Introduce livestock

July & August

May & June

Thriving biodiversity
and a focus on education

Planting season begins witha focus on optimizing inputs

4January &February
Protecting the soil over winter to
set strong foundations for the year
Key Regenerative Agriculture Principles

At the start of the year, harsh conditions are thedaily reality at our Farm of the Future in New
Brunswick, Canada. Extreme weather can cause
problems, and vital nutrients and organisms inthe soil can be lost if the soil is left too exposed or
allowed to erode, which can harm the potato crop.
This means we need to focus on protecting – orarmouring – the soil so that our fields are readyfor the beginning of the farming year in spring.
Our winter preparation and planning helps
ensure that when the snow melts and the soil
thaws, it is nutrient-rich, aerated and full of life,
ready for crops to be planted.

Armouring the soil with diverse
cover crops is our top priority
The most effective way to armour the soil
is to cover it with living plants called covercrops. These are planted in fall during thepotato harvest and help the soil stay healthy
over the colder months. Plants growing andspreading their roots into the earth helps
aerate the soil, reducing compaction andimproving water filtration. More moisture in
the soil means plants absorb more water andnutrients, resulting in higher quality crops. Less
compacted soil also reduces the need for tilling
later in the year – a process that can disturb
valuable microorganisms like fungi and release
sequestered carbon into the atmosphere, withnegative impacts for the climate. Cover crop
planting also creates a physical barrier fromwind and rain, which can otherwise cause
erosion and drain valuable nutrients, such as
nitrogen, from the soil. Even after the covercrops die, they turn into mulch on the surfaceof the soil, offering a protective barrier rightthrough to spring.

perfect conditions for microorganisms andother organic life to thrive underground.
At the same time, a wide variety of plants
and flowers attract pollinators, insects andanimals that further build the ecosystem.
This all supports the growth of our crops andmakes them more resilient to pests, disease
and the impacts of extreme weather. So, when
we plant cover crops we plant a wide variety:28 varieties to be precise.

Our cover crops also help support andstimulate a rich and diverse ecosystem acrossthe farm. Having a variety of plants in the soil
encourages a mix of nutrients that create the5Cover crops used at Farm of the Future Canada
Category of cover crop and its benefit
Legumes: Legumes are highly effectiveat pulling nitrogen into the soil fromthe air while controlling for erosion
and increasing soil organic matter,
which acts as a reservoir for waterand nutrients.

Species
Alfalfa
Frosted berseem clover
Red clover
Faba beans
Birdsfoot trefoil
Black forage peas
Chickling vetch
Pearl millet
Sorghum sudan grass

Grasses and Cereals: Grasses andcereals have extensive root systems
that effectively retain nitrogen. They
also create large amounts of biomass,
suppressing weeds and increasing soilorganic matter.

Japanese millet
Corn
Timothy
Arsenal meadow grass
Brome grass
Meadow fescue
Perennial ryegrass
Orchard grass
Oats
Brown mustard
Fodder rape

Brassica: Brassicas are very goodat preventing soil borne pests
and diseases.

Groundbreaker radish
Daikon radishes
Kale
Oilseed radish
Purple top turnip
Phacelia (Borage family)

Other Species:

Buckwheat (Knotweed family)

Farm of the Future Africa:
Cover crops
Regenerative farming principles must be adapted
to the local context. The work underway at our
Farm of the Future Africa is crucial for generatingknowledge around how these principles come tolife in the Southern hemisphere.
In South Africa, cover crops play a vital role inarmouring the soil to protect against extreme heatand drought. The cover crops we select at Farmof the Future Africa help limit erosion, increasewater infiltration and retention and provide natural
fumigation of soil-borne pests. We also pick species
that provide good manure, with the mulch they
produce being used to improve our irrigation
systems, minimizing evaporation and conserving
moisture. Current cover crops include cereals,
legumes, brassicas and borage, all of which help
the soil to retain vital nutrients, increase organic
matter and promote biodiversity. We have also
been experimenting with crops which have specificfunctions. For example fodder radish can help tohold nutrients like nitrogen and phosphorous in
the soil while also reducing root knot nematodes,
a common soil-borne pest.

Sunflowers (Sunflower family)
6

Locking carbon into the soil

March & April
Preparing for planting with minimum
soil disturbance
Key Regenerative Agriculture Principles

Buying seeds and preparing the farmfor growing season
As spring arrives on the farm, our preparations
for planting pick up speed. One important task
is to select and buy potato seeds. Potatoes
are highly susceptible to drought and waterstress as their shallow roots have a limited
capacity to store water. That’s why choosing
the right varieties is vital. On our Farm of the
Future Canada we plant three varieties ofpotatoes: King Russet, Caribou Russet andRusset Burbank (see our spotlight on waterstress tolerant potato varieties). The firsttwo are particularly tolerant to water-stress,

allowing us to maximize our water efficiency
without risking the yield. Once our varieties
are selected and the seeds are purchased, we
use a machine to separate them into different
sizes. This helps optimize our precision sowing
processes for similarly-sized seeds and ensuresthat plants will eventually grow in a relatively
uniform way.

The preparation we have done over fall andwinter by armouring the soil with cover crops
helps minimize the extent to which we needto disturb the ground in spring – the time
when most conventional farms would needto undertake significant tilling to prepare
for planting. One of the main benefits tominimizing soil disturbance is that it helps
to lock carbon into the soil and prevents itfrom being released into the atmosphere.
It also helps with nutrient retention, water
infiltration and increases soil organic matter.
To further enhance our ability to sequester
carbon into the soil, we are partnering with
Cornell University to pioneer a piece of research
focusing on non-organic carbon sequestration.
Using Controlled Traffic Farming
and specialized machinery to
avoid soil compaction
To ensure our soil remains well-aerated
throughout the season with minimal tilling,
we use technologies that prevent farm
traffic from compacting and damaging
the soil. Controlled Traffic Farming(“CTF”) uses a system of permanent, but
limited, wheel tracks across fields wheremachines like tractors travel, reducing
how much of our soil is compacted.
To achieve this, all our machinery is guided
by a specialized Raven GPS steering systemwith sub-inch accuracy, which keeps it on
its tracks. The tracks are spaced 3.4 metresapart with four row beds set in between –wider than usual to reduce the number oftracks overall. This unique spacing means
our machinery wheels are retrofitted to sit
at 3.4 metres apart. Two pieces of equipmentthat help reduce soil compaction are
the basket hiller and the dammer-diker.
Both of these attach to the tractor andwork to aerate the soil and increase water
retention, particularly by creating pockets
which hold water in place underground.
We are measuring the effectiveness of ourCTF system through our partnership with
the Government of Canada Agricultureand Agri-Food Canada department. So far,our findings suggest that our CTF system
reduces soil erosion, nutrient loss and soil bulk
density, while improving water infiltration.

7

Partner Spotlight

Wayne Honeycutt, President and CEO, Soil Health Institute: “Farmers are already experts in their field,
they just need support in the journey to regenerative agriculture”
Insight from our expert partners
We’re delighted to see that interest in regenerative agriculture
has really taken off in the last few years. While the term covers
a lot of different approaches and philosophies, one value heldin common is the idea of improving soil health. Healthy soil
can help build resilience to increasingly frequent extreme
weather events, reduce reliance on expensive fertilizers, andbuild what we soil scientists call “Available Water Holding
Capacity” which helps farmers to improve crop quality
and achieve more stable yields year on year. Regenerative
agriculture is therefore one of those rare win-win situations
for farmers, agricultural industries, the environment, andultimately for society.

There are several ways that industry can support the transition
to regenerative agriculture. A critical area of support is toprovide practical, location-based education programs. Farmers
are already experts at what they do, but education programs
can be very useful in showcasing new practices and helping
to make well-informed decisions for their specific farm,
production system, climate, soils, and personal goals.
My experience is that farmers learn best from other farmers.
That is why at the Soil Health Institute we are working with
McCain to set up peer networks or “cohorts” of farmers andtechnical specialists so they can hear from each other how
they successfully adopted regenerative practices and how
they’ve benefited. McCain has developed a very thoughtful
framework that allows farmers to see where they currently
are on their regenerative journey and what steps can be taken
to progress to the next level. We can help farmers along thisjourney by focusing on what is important to them: building
drought resilience, reducing input costs, reducing erosion,and of course increasing profits. All of these areas can beaddressed by focusing on soil health.

Ensuring that businesses let farmers know that adopting
regenerative soil health practices is important to them isalso key. That sends a clear signal about industry priorities
and what the future holds for farmers wanting to partnerwith key brands. Similarly, educating other groups that
influence the uptake of regenerative agriculture, particularly
landowners and land managers is equally important. “Fullsystem” perspectives can be challenging to manage
in situations where a farmer is leasing land, so wider
adjustments to the business model are needed.
The future success of regenerative agriculture at scale boils
down to one key ingredient: giving farmers the information
they need to make it a success. In some cases that may mean
providing information on the business case for a regenerative
agriculture practice, or it may mean demonstrating how
healthy their soils can become using robust data. The
good news is that we have a good idea of what is needed,
and many farmers are recognizing how improving soil healththrough regenerative practices can help them build resilienceand improve their bottom line. I’ve never met a farmer who,
after transitioning to regenerative soil health systems, everwent back!

8

May & June
Planting season begins with a focus
on optimizing inputs
Key Regenerative Agriculture Principles

Planting the potatoes and other crops
In mid-May we plant the seeds for our crops,
marking the beginning of the growing
season. By early June, the first plants begin
to emerge. This last season we were able toplant the seeds without tilling the fields first,
which is a testament to the work done in fall
and winter to armour and prepare the soil.
Potatoes are not the only crops we plant.
Our Farm of the Future Canada works ona four-year crop rotation schedule, whichmeans a proportion of our fields are always
planted with non-potato cash crops. In 2023

we focused on oats, which were planted
at the beginning of June and harvested inlate September. In previous years we havealso planted barley and wheat. Diverse crop
rotations help prevent pests and disease andprovides opportunity for nutrients in the soil
to replenish. Crop rotation also increases
biodiversity, which thrives on variety. In
addition, our choice of non-potato cash
crops are all no-till varieties, so both the soil
and climate benefit from lack of disturbance.

Optimizing our use of inputs
Reducing agro-chemical impact is one of
our key Regenerative Agriculture Principles.
The production and application of synthetic
fertilizers make up a significant proportion of
our carbon footprint on the farm, and overusecan also have an unwelcome impact on soil
and groundwater. If we can create rich andhealthy soil naturally, it can reduce the quantityof inputs needed, and therefore the cost forfarmers. Reducing the use of agro-chemical
products doesn’t happen overnight and can
only be changed once the soil is thriving. One
way of looking at it is that we have to earn theright to reduce our reliance on inputs throughour good work focusing on soil health.

synthetic fertilizer for maximum impact
and value. We also think carefully about theenvironmental conditions before spraying.
For example, considering the weather, visibilityof spores in the air, and historical data allows
us to make targeted decisions about how
we use inputs.

At Farm of the Future Canada, we have beenable to reduce our use of synthetic fertilizers
while maintaining crop quality and yield. In
2022, we were able to reduce our nitrogen
fertilizer application by 13% compared to atypical farmer in the area. This is a testament
to the great work the Farm of the Future
team has been doing with cover crops, low-tillinterventions and increased water retention.
When we do use synthetic fertilizers, we’reable to use them as required, with precisionapplication delivering smaller volumes of9Livestock arrives at the farm to help naturally
fertilize our fields
Introducing livestock is another powerful toolfor increasing nutrients in the soil without usingsynthetic fertilizers. At the end of May, local
cattle arrive on the farm and spend the summer
grazing on our cover crops. As a key part of thefood system, cattle produce and spread natural
fertilizer, recycling nutrients such as nitrogen andcarbon back into the food chain and encouraging
organic growth without disturbing the soil. We use
a process called strip grazing to ensure an evenapplication of manure: livestock are confined toa strip of fresh pasture for a few days at a time,then moved to a new strip to fertilize and allow
regrowth where they have grazed.
Our livestock integration model sees cattle
borrowed from neighboring farmers, rather thanfarmers having to keep their own livestock yearround. We initially had a tough time convincing
local cattle producers to partner with us – thearrangement was new and unusual, and it wasdifficult to communicate the benefits. However,after one rancher took a chance on us and was
impressed to find their cattle returned healthierand better fed than ever, word spread quickly
and cattle producers are now keen to join forces.

10Partner Spotlight

Jack Smith, Farms Director at AG Wright & Son (Farms) Ltd, South Cambridgeshire, UK:“Our biggest goal is to make sure that the next generation keeps on farming”
Insight from our expert partners
Regenerative agriculture is a hot topic among farmers. But
whether you agree with it or not, it’s hard to argue with theunderlying principles: looking after the soil, reducing chemicals,
being as unintrusive as possible. Really, these ideas are justgood farming practices that have been used for generations.
The concept of regenerative agriculture is hard to define so
it’s helpful that McCain have put their own definition andframework against it. On our farm, we use a range of practices
from the McCain Regenerative Agriculture Framework, adapted
to our specific needs – we primarily grow in soil with high organic
matter. For us, these regenerative practices are doubly important
as we try to preserve and improve the lowland peat soils of theUnited Kingdom.
We’re planting cover crops early to armour the soil, reducing
agro-chemical inputs where appropriate, introducing livestock,and trying to improve biodiversity and pollinators by planting
headlands with a wildflower mix provided by McCain. We’realso trying to reduce soil movement by reducing the numberof passes over the fields and by not plowing. One way we’vemanaged to stop plowing is by only growing on better landwith a better supply of water, rather than growing on marginal,
lower-quality land. If you’re trying to do more with less, you haveto start with the best land.
The autumn [fall] of 2023 in the UK was a very difficult season
but also an example of how regenerative practices are helping
us. There were some pretty horrendous weather conditions but
actually our fields were in better health than they would havebeen a couple of years ago. If this had happened three or four
years ago, before we started changing how we farm, we’d bein more trouble.

I’ve been involved in the Sustainable Agriculture Steering Group
with McCain, and it’s encouraging to see that they have theleading potato advisors in the UK designing and trialing thesesystems. Being involved with programs like that you learn a lot
and get to sound out ideas about what works and what doesn’t.
You also meet other farmers with the same attitude as you, see
their farms and pick up new ideas to replicate on your own farm.
The future of farming is change. We can’t continue to do what
we were doing 10 years ago and hope for better results – that’s
just madness. Farming has to keep evolving with research andbest practice.

The main motivation for making the change is to grow a betterand more financially viable crop. You have to pick the practices
that are going to work for you so you don’t increase risk too
much. Farmers often turn to intensive farming and chemicals to
try and overcome risk and maintain or increase margin, but thiscan be a challenge in itself as more inputs mean more cost that
can actually reduce margins. In regenerative agriculture we haveto make big changes to processes while maintaining yield andmargin. If we can’t make money, it’s not going to happen. Thereis always going to be risk involved, but we have to find ways tomake sure it is shared widely across the value chain.

My advice to farmers thinking of taking on regenerative
approaches is to get started. You can’t ignore it so bebold, get involved, learn from your neighbours.
That’s certainly where we’re at. We’ve notfinished changing by a long way, andwe’re not perfect. But we are involved
with the conversation and as afourth-generation family-owned
farm, our biggest goal is to makesure that the next generation
keeps on farming.

11

July &
AugustThriving biodiversity and a focus on education
Key Regenerative Agriculture Principles

The soil is rich and pollinators are
drawn to the fields
By the high summer, the flurry of planting
activity has finished and the potatoes arestarting to grow. During this time, the farm isbrimming with life. Above ground, pollinatorsand other insects are attracted to the flowers of
our crops and cover crops. At Farm of the Future
Canada we have encouraged natural flower
vegetation on the borders of our fields, which
are now full of species like alsike clovers andbirdsfoot trefoil, providing an essential habitatand source of food for bees and other insects.

Beneath the ground, the soil is also teemingwith life. Our cover crops and careful
preparation of the soil have created a vibrantecosystem of microorganisms, bacteria andorganic matter. Well-aerated soil means worms
and other invertebrates can move freely
through the earth, and the soil can breathe.
Over the past few years, we have partneredwith the Centre for Biodiversity Genomics
based in Guelph, Canada, to gain even moreinsight into our soil at this time of year. Theircutting-edge DNA metabarcoding processprovides us with more comprehensive soil
biodiversity information, which means wecan better understand the bacteria, fungi
and animal communities that make our fields
their home. The process can also provide
biological information that contributes toa more holistic decision system informing
our choices around agro-chemical products
and allows us to quantify the benefits ofregenerative agriculture on soil healthand productivity at scale.

12

Maintaining the right conditions for healthy
crop growth
Monitoring and optimizing growing conditions
is our main focus over the summer months.
This challenging job is made even moredifficult by the impacts of climate change.
In particular, water supply has become lesspredictable, water-stress more common,
and as a result we are seeing an increased
risk of pests. We are therefore investing intechnologies that make it easier to makethe right interventions, in the right locations,at the right moments.
One important intervention for many farmers
is irrigation, which enables us to minimize
water-use. At Farm of the Future Canada,
we installed pond irrigation systems designed
to capture and store excess rainfall while
also providing water for our livestock. We also
constructed a solar-powered drip irrigation
system that can deliver water precisely andin a way that reduces the risk of creating theconditions for disease and mildew. However,heavy rainfall throughout the growing
season in 2023 meant our new irrigation
technology was not needed this year. This
served as an important reminder of the realityof volatile conditions in a changing climate,

but we expect to have it in use next year forassessment of its effectiveness and impact.
The use of crop protection products likeherbicides and pesticides is another importantpart of crop development over the summer.
Pests will always be present, and we want to
reduce their impact in a way that uses as few
inputs as possible. Our first defence is natural
methods of pest control. Certain cover crops,
such as oilseed radish, naturally prevent soil
borne pests and diseases without the needfor herbicides. In the future, when we do apply
crop protection products to the plants at
Farm of the Future Canada, we will be using
highly targeted, AI-controlled, ‘see and spray’
technology to ensure precise application.
Our tractors will use cameras and sensors to
identify specific issue areas and only spraythose plants that need it, removing theneed to spray across entire fields. More
broadly, McCain is supporting farmers withnew technologies. For example, McCain
recently launched Presia Ag Insights, a new
business unit which strengthens decisionmaking capabilities through satellite
imaging and machine learning.

13How we support our farmers’ regenerative transformation
Focusing on education allows farmers
to build skills and networks
Above ground, the farm is also buzzing withvisitors, farmers and McCain partners eager
to learn and grow alongside each other on
this journey. Demonstration days and programs
held throughout the year are hugely important.
Farmer Field Days take place in the summer
and this year’s program covered new advancesin research, a demonstration of ‘see and spray’
technology, and discussions of the challenges
associated with harvesting, irrigation andlivestock integration. Hosting these days at
Farm of the Future allows us to share knowledge
through a powerful ‘show and tell’ approach(for more information see our spotlight onmeasuring progress).
However, perhaps the most valuable aspect of
the Field Days is the opportunity for farmers tobuild networks with their peers, which enables
them to share their first-hand experiences of theregenerative transformation. By bringing farmers
together for these events and programs, we hopeto create cohorts of peers who can support eachother and share their experiences long after the
Field Day has ended.

Multi-stakeholder collaboration

1. Economic
Support

2. Technicalsupport• Financial solutions &direct funding• Showcasing practices• Long-term contracts• Demo farms andinnovation hubs

• Government support &public subsidies• Deep relationships
with field reps

3. Measuring progress• Data measurement and surveying• Digital technology solutions

14

Financial support and investment are
critical for accelerating the transition
One of the key challenges to the adoptionof regenerative practices is the financial
barrier. Many farmers share concerns aboutrisks to short-term yields, investment in new
equipment and the commercial model.
Studies show there is significant opportunity
in moving to regenerative practices in thelong-term, but we recognize extra support
is needed now.
We therefore work closely with partners
to provide support that can de-risk boththe transition period and the longer-termbusiness model. One way we do this isthrough a blend of different types of financial
support. For example, in France we offer
farmers six-year commercial contracts,
and a premium price for regenerative crops.

Across our growing regions, we also work withfinancial and commercial partners to offer
incentives and preferential loan terms to ourregenerative farmers, allowing them to invest
in new equipment, technology and expert
services. We have set up different incentive
programs with Farm Credit Canada, Credit
Agricole, Rabobank and NatWest. In addition,
our partnership with McDonald’s Canada, the$1M Future of Potato Farming Fund, provides
cost-sharing grants to help farmers begin andscale their regenerative transformation.

Farm of the Future Africa: Irrigation
Our Farm of the Future Africa regularly experiences hot andextreme weather conditions, and is often operating under waterstress. This makes our Regenerative Agriculture Principle ofincreasing water efficiency even more vital.
Our most significant intervention so far has been introducing a drip irrigation system
which uses technology to constantly monitor the moisture in the soil and deliver the
optimal amount of water where it is needed. We installed drip lines at the same time
as planting and ridging the soil, thereby reducing passes of the field by machinery.
Though measurement is still being optimized, we have managed to achieve
comparable yields with much less water applied, indicating early success of this system.
However, it was not without its challenges. We found that historic infestations of a weed
called tribulus terrestris, or ‘devils thorn’, was puncturing the drip tape. This year, in
response, we installed thicker, more expensive drip tape to protect our irrigation system
and are exploring how we can increase efficiency by mechanizing drip line removal. We
are also experimenting with introducing mulch from our cover crops into the irrigation
system to reduce evaporation and conserve moisture, making it more efficient.

15

Partner Spotlight

Rabobank: “The large-scale transformation to regenerative agriculture presents risks, but we’vebeen able to create tailor-made financing solutions to the specific challenges farmers face”
Insight from our expert partners
Our team at Rabobank is working alongside McCain to
increase uptake of regenerative agriculture practices byoffering farmers incentives and support. A large-scaletransformation to regenerative agriculture presents risks,
and we in the banking industry are good at assessing risk.
By working closely with McCain and its farmers, we’ve beenable to create tailor-made financing solutions that enable
investments in equipment and technology that growers
need for regenerative practices.
As part of our three-year partnership in the Netherlands,
launched in early 2023, McCain offers farmers a multi-year
contract including education, technical assistance, a premiumfor regenerative produce and access to demonstration farms.
As farmers advance, our team at Rabobank offers sustainabilitylinked incentives such as loans with discounts once growers
receive a high score on sustainable practices. We are also offering
financial solutions that blend our own products with public
subsidies in the Netherlands, making it easier for farmers toaccess financing. Looking forward, we are exploring offering
equipment financing in an agile and competitive way toremove barriers for farmers, and potentially expanding thepartnership to Australia, New Zealand and the USA.

More broadly, one of the most significant commercial
challenges for the regenerative agriculture sector is proving themodel to banks who may find it hard to quantify the benefitsof improved resilience, as well as the significant cost of inaction.
Regenerative agriculture is still viewed by many as more volatile
than conventional farming. The solution to this is more data on
both farming and commercial outcomes of programs like ours.
Once this data is in place, regenerative agriculture should
become an even more attractive space for financial services
providers – in the long term, it will create more resilient andstronger supply chains for our customers, which means
reducing risk for banks. At Rabobank, another key motivationis the opportunity to reduce our Scope 3 emissions and wider
environmental impact by helping reduce the emissions footprint
and agro-chemical inputs of the agriculture sector. And of course,
offering exciting new products to regenerative farmers will be
powerful in attracting new customers, particularly when linked
to a high-profile partnership like the one we have with McCain.
We’re proud to be at the forefront of supporting the transition
to regenerative agriculture and delighted that we can partnerwith McCain on the journey. Our hope is that over the next
three years and beyond, the industry can take a significant
step forward towards a regenerative future.

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September& October
Harvesting the potatoes and assessing the yield
Key Regenerative Agriculture Principles

Before the harvest we once again begin to plant
cover crops
By mid-September, the potatoes are ready to be
harvested. This means unearthing the tubers while
trying to minimize disturbance to the soil. Of course,when harvesting potatoes we can’t avoid digging,so we use the opportunity to undertake otherbeneficial practices at the same time. Days before
we begin the harvest, we lay down cover crop seeds
such as oats and brown mustard, so that they can beembedded and mixed into the soil as we harvest the
potatoes. These cover crops quickly grow and protect
the soil, restarting the annual cycle at the farm.

We also practice fall bedding, which means
irrigating, fertilizing and tilling the fields into
their traditional hill beds before the winterarrives. Over the colder months, these hills freeze
and thaw, loosening the soil that we disturbed
during the harvest season. This removes theneed for additional tillage in the spring, and as
a result reduces the need for additional labour,
heavy machinery and fuel consumption.
The harvest itself takes over a month of hard
work from our farmers, but finally they see thefruits of their labour. By the end of October, allof the potatoes and rotational non-potato cash
crops are out of the ground, and the fields areprepared for the fast-approaching winter.

With the potatoes harvested, we begin
to assess our yield
As potatoes make their way into our storage
buildings and out towards our McCain factories,
we’re able to review our yield. Data from local
conventional potato farmers sets a benchmark
for the quality and quantity of tubers we hopeto harvest. In 2023, at the Farm of the Future
Canada, our regeneratively farmed potatoes
had fewer internal defects than local averages,
likely due to improved water filtration in thesoil because of less soil compaction. In termsof quantity, our year-on-year data showsthat our crops remain stable around the
local average.
Alongside this, we are currently carryingout analysis to measure the farm costs andeconomic benefits associated with regenerative
practices compared to local conventionalfarms. On the one hand we have recognizedcost savings from reduced synthetic fertilizer
use and lower costs in fuel and labour due toreduced tillage. On the other hand, there havealso been cost increases from buying crop
protection products with a lower environmental
impact. While it is early days and additional
economic and environmental benefits are still
being captured (we are in year three of a full
four-year rotation), so far regenerative practices
have not had a negative impact on yield. This
will continue to be an area of analysis at Farmof the Future Canada in the months to come.

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Farm of the Future Africa:
Crop rotation
At Farm of the Future Africa, we produce four cash
crops – potato, maize, soybean, and wheat – on afour-year rotation cycle. The varieties we plant in thiscycle are specific to the southern hemisphere both interms of climate adaptation and local market need.
Crop rotation has the same benefits in the Southernhemisphere as in Canada, giving the fields time
to restore nutrients and, in the case of maize andsoybean, benefit from no-till harvesting. Our maize
is also underseeded, a process in which a cover crop isplanted into an already established crop. This practicehelps to increase biodiversity and biomass which has
positive effects on soil health, crop health and yield.
As well as benefiting the soil, our non-potato cash
crops have delivered higher-than-expected retailprices, which we can reinvest into innovation at
the farm. For farmers looking to make the transition
to regenerative farming, this provides a great proofpoint for the financial benefits.

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Partner Spotlight

McDonald’s: “Our ability to serve communities for decades to come is intertwined with theresilience of our suppliers and the farmers, ranchers, growers, and producers within our System.”Insight from our expert partners
At McDonald’s, everything we serve starts on the farm. Our ability
to feed communities is intertwined with the long-term resilienceof our suppliers, and the farmers, ranchers and producers within
our System. Additionally, the strength of our supplier community
is critical to our ability to advance science-based climate action
and drive nature-based solutions. Regenerative agriculture is an
important part of our climate strategy, and the implementationof these practices will help us contribute to a resilient, thriving
food system, allowing us to continue providing affordable, moresustainable food in 40,000+ communities around the world.
This work necessitates System-wide, collective action. Our
work with McCain, and direct collaboration with farmer
partners, helps us better understand the impacts on theirfarming partners and their businesses – and the support
that’s needed. A farmer’s transition to regenerative agriculture
practices is no small feat, and farmers have to shoulder theburden of a steep learning curve of fairly dramatic changes tocomplex production practices, with financing and yield results
being key considerations. Partnering with McCain brings us
closer to the farm level and helps us advocate for broad-based
policies and solutions that can help transform food systems.

Our work with McCain is an example of an important
collaboration that is making a positive impact at scale throughboth farmer engagement and education throughout McDonald’s
system. Across multiple global markets, including Canada andthe UK, we have worked with McCain to create dedicated funds
that incentivize farmers’ transition to regenerative farming.
Through the McCain team’s potato production expertise, we
are able to prioritize the most impactful regenerative actions,and our hope is that additional categories will ultimately benefit
from our increased understanding of how to partner and scalethese changes. The McDonald’s team recently visited McCain’s
first Farm of the Future in New Brunswick, Canada. This wasa great opportunity to see regenerative farming in action andunderstand the impact these practices could have at scale.
Regenerative agriculture is still a new topic for consumers – butinterest is growing. People enjoy learning about how their food isgrown, and where it comes from. As one of the largest consumerfacing brands in the world, we see our role as helping raise
consumer expectations, empowering them to expect products
to be sourced in a way that prioritizes responsible production
while protecting nature, ecosystems and communities. We lookforward to our continued partnership with suppliers like McCain
as we further our efforts and feed and foster communities for
decades to come.

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November &DecemberAssessing our progress against the
Regenerative Agriculture Framework
At the end of the year we also assess ouroutcomes against the seven indicators of our
Regenerative Agriculture Framework. This
helps us to identify areas where we have madeprogress or faced challenges, giving us
a clearer view on where we need to focus
in the year ahead. We encourage all of ourfarmers to go through this process annuallyto continue to improve and progress throughthe levels of our Framework.

Measuring outcomes, innovation, and future planning
Key Regenerative Agriculture Principles

With the harvest complete,
we begin to reflect on the year
With the potatoes collected from the fields,
our cover crops once again cover thelandscape. We can now take the opportunity
to reflect on the challenges and successesof the year.
The Farm of the Future External Advisory Board,a collection of agronomy practitioners, scientificexperts and farmers play an important part inreviewing our annual progress. Twelve months
previously, they encouraged us to focus on
further reducing synthetic fertilizers andincreasing our use of cover crops and green
manure. While the data is still being processed,
we have gained some valuable lessons. For
example, we saw the positive impacts of covercrops and learned that selecting the right
blend of cover crops is crucial. We also foundthat the timetable for planting and terminatingthem is equally important as missing deadlines
can lead to weed growth. This year we had an
added challenge in reducing agro-chemical
impacts because some cover crops survived
through winter so had to be terminated before
the planting season. Reflecting on theselessons means we can make more informed
decisions next year.

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Following the harvest, we reflect on our progress against the Regenerative Agriculture Framework Indicators:

Assessing progress against the Regenerative Agriculture Framework
Regenerative Agriculture Framework Indicators Reflection questions
Armoured soils preferablywith living plants• What percentage of the soil surface has been covered

Enhanced crop diversity• How many different crop species have been grown?

by living crops or residue and for how much of the year?

• How many times did we till the soil?
Minimized soil disturbance• How did we adopt conservation tillage in rotation crops?
• By what intensity did we decrease tillage across rotation?
• Which crop protection products were used to reduce

Reduced toxicity of pesticides

environmental, human and consumer impact?

• What is the Environmental Impact Quotient (“EIQ”)

Meanwhile, regenerative potatoes become fries
As winter draws in, our regeneratively-farmed potatoes are beingtransformed into McCain products and making their way to ourdinner tables. But today, few consumers will know that. Despite its
huge importance to the future of the food system and the climate,
there is little public awareness about regenerative agriculture. At
McCain, we want to be part of changing this.
In 2022, McCain pioneered consumer engagement and education
on regenerative agriculture. We produced Regen Fries, fries madefrom potatoes grown through regenerative agriculture practices.
Regen Fries were served through pop-up events in Canada, US, andthe UK. To engage and educate consumers, McCain, in partnershipwith Livetopia, developed an immersive Roblox game, which wasa playful digital twin of McCain’s Farms of the Future. So far, thegame has engaged over 41 million players. Through this initiative
consumers were able to learn about regenerative agriculture while
tasting delicious Regen Fries.

value per hectare?
Enhanced farm andecosystem biodiversity• What percentage of our land has been dedicated tonatural habitat?

• Were all inputs applied based on Decision Support Systems
Reduced agro-chemical impact
and optimize water-use(“DSS”) or expert advice from a recognized crop advisor?

• What percentage of crop nutrient needs were provided
from organic sources?

Increased organic soil matter• What was the percentage increase in organic matter in the soil?

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Conclusion
Collaboration

Looking ahead

The regenerative transformation needs to be a collaborative
movement, with all players in the value chain playing theirpart. In particular, governments are key to creating the rightenabling environment through financial, regulatory andtechnical policy and support. For example, McCain Foods
USA recently partnered with the Soil Health Institute andCampbell Soup Company and received funding from the
Natural Resources Convention Service – a USDA agency – tohelp potato farmers in Maine and Wisconsin trial and adopt
climate-smart practices. We also collaborate at an industry
level, such as through our membership of the Canadian
Alliance for Net-Zero Agri-food (“CANZA”), helping create asustainable future for Canada’s food sector. Coalitions suchas the Sustainable Markets Initiative (“SMI”) Agribusiness
Task Force, One Planet Business for Biodiversity (“OP2B”),
and the Sustainable Agriculture Initiative (“SAI”) Platform arealso important platforms to connect with others in the foodand agriculture industry to better understand how to scale
regenerative farming.

Over the coming year the focus for Farm of the Future
Canada will be on introducing new technologies, expanding
partnerships and research, as well as demonstrating the
economic benefits of the transformation and reducing costof entry for farmers. We also plan to open our third Farm of
the Future by fiscal year 2025. In parallel, we are reviewing
and updating our Regenerative Agriculture Framework
to reflect evolving best practices, and in early 2024 we will
publish our annual report of the progress made on eachof our Farms of the Future.3
With no one-size-fits-all blueprint for how regenerative
agriculture should be implemented, our work withresearchers, farmers, commercial and financial partners
is helping develop best practices and educate farmers
on how to make the transition. None of this will happen
overnight, but we are making good progress and arecommitted to sharing our successes and challenges as
we work towards our target of implementing regenerative
agriculture across 100% of our potato acreage by 2030. If
you are interested in joining us, please get in touch – wewould love to connect. A huge thank you to our team at
Farm of the Future Canada for their support in producing
this Deep Dive, and to all of our farmers and partners acrossthe world for their energy, enthusiasm and hard work to
make the regenerative transition a reality.

22References.
1 
Canadian Alliance for Net-Zero Agri-food.
2 ‘Onboarding’ and ‘Engaged’ are the first two levels of regenerative agriculture proficiency
in our Regenerative Agriculture Potato Framework. For more information, see our
Regenerative Agriculture Framework here.
3 Farm of the Future Canada Year 1 Report; Farm of the Future Canada Year 2 Report.

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We welcome any feedback.
Contact us at sustainability@mccain.com.