Food and beverage company Danone North America has partnered with rePlant Capital to reduce the impact of its farmer partners on the environment.

rePlant has agreed to make an investment of $20m over the next few years to support Danone North America’s farmer partners. It will provide financial assistance for the expenses incurred in transitioning to regenerative or organic farming practices.

Danone North America 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.”

Regenerative and organic farming practices aim to enhance biodiversity, stabilise ecosystems and enrich the soil.

Danone North America said that it has been supporting its farmers to minimise the business’ impact on the environment and protect natural resources for the future.

It added that this new partnership forms part of its commitment.

Farmer partners who secured these loans from rePlant include McCarty Family, owners of McCarty Family farms and co-owners of MVP Dairy.

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.”