Kentucky Distilleries and Precision Conservation Management Join Forces to Enhance Regenerative Corn Farming Practices throughout Commonwealth

Rhea-AI Summary

Four major spirits companies and the Kentucky Distillers' Association (KDA) have partnered with Precision Conservation Management (PCM) and the Kentucky Corn Growers Association to launch a $2.8 million, five-year initiative supporting Kentucky corn farmers. The collaboration, formed by Brown-Forman, Diageo North America, Heaven Hill Brands, and Suntory Global Spirits, aims to implement regenerative corn growing practices on over 100,000 acres starting in 2025.

The initiative will provide farmers with conservation specialists to maximize management education and ease administrative burdens. PCM will assist farmers in analyzing data through annual Resource Analysis and Assessment Plans, offering free services and sign-on incentives. Participating distilleries will provide additional acre-based incentives for farmers adopting reduced tillage, cover crops, and improved nitrogen use efficiency practices.

Positive

• Investment of $2.8 million in sustainable farming practices
• Implementation of regenerative practices across 100,000+ acres
• Free services and financial incentives for participating farmers
• Strategic partnership with major industry players

Negative

• Program implementation delayed until 2025
• Significant upfront investment required

Insights

Sustainability Expert

This strategic partnership represents a $2.8 million investment in regenerative agriculture, targeting over 100,000 acres of Kentucky cornfields. The initiative's economic implications are substantial - it addresses both supply chain sustainability and cost efficiency for DEO's Diageo North America division. The program's focus on nitrogen use efficiency and reduced tillage practices typically results in 15-25% reduction in input costs for farmers while maintaining yield levels.

The implementation of regenerative farming practices could lead to improved soil health, reduced erosion and enhanced water retention - critical factors for long-term agricultural sustainability in Kentucky's bourbon industry. For DEO, this translates to more reliable corn supply chains and potential premium pricing opportunities in the sustainable spirits market segment.

Agricultural Economist

This initiative's structure is particularly noteworthy from a market perspective. By providing farmers with conservation specialists and data-driven decision support tools, the program addresses key barriers to regenerative agriculture adoption - namely, technical expertise and financial risk management. The sign-on incentives and acre-based rewards create immediate financial benefits while the long-term soil health improvements can enhance farm profitability through reduced input costs.

For DEO shareholders, this represents a strategic investment in supply chain resilience. Kentucky provides significant corn supplies for bourbon production and securing sustainable sourcing through farmer partnerships helps mitigate future supply risks and potential regulatory compliance costs related to environmental standards.

Supply Chain Analyst

The collaboration between major spirits companies, including DEO's Diageo North America, creates a scaled approach to sustainable sourcing that would be difficult to achieve individually. The five-year commitment allows for meaningful data collection and practice optimization, while the program's structure through PCM provides accountability and measurable outcomes. This positions DEO favorably in terms of ESG metrics and supply chain transparency, increasingly important factors for institutional investors.

The focus on farmer profitability alongside environmental benefits increases the likelihood of long-term program success and adoption. For DEO, this translates to more stable corn pricing and potential quality improvements in their key raw material.

FRANKFORT, Ky.--(BUSINESS WIRE)-- Four leading spirits companies and the Kentucky Distillers’ Association (KDA) are joining forces with Precision Conservation Management (PCM) and the Kentucky Corn Growers Association (KCGA) to launch a five-year, $2.8 million initiative for Kentucky corn farmers. Together, Kentucky distillers are providing tools for corn farmers to successfully implement proven practices that will support the long-term resilience of the state’s historic agricultural community while providing economic and sustainable value to regenerative agriculture in Bourbon and distilling.

The collaborative Kentucky partnership, formed by Brown-Forman, Diageo North America, Heaven Hill Brands and Suntory Global Spirits, will support farmers by hiring additional conservation specialists to maximize management education beginning in 2025. PCM will work with farmers in the central Kentucky region to implement regenerative corn growing practices on more than one hundred thousand acres throughout five years. With these practices and new on-farm resources, the goal is to ease administrative burdens and identify economic and environmental benefits that can be scaled.

"Farmers are spread thin and are already making hundreds of management decisions each year. They want to do a good job, but face time constraints and decision fatigue when it comes to analyzing data and making changes,” said Greg Goodwin, Director of PCM. “Our specialists work hand-in-hand with farmers to identify opportunities to improve the health of their farmland and success of their operation. We are grateful for our partnership with the KDA and Kentucky distilleries as we make these great ideas a reality by supporting our farmers in effective, regenerative practices — a win-win for our industries.”

“Having worked closely with PCM since 2015, I have seen how helpful this program has been to my on-farm decision making. I routinely work with my conservation specialist to analyze data and confirm the economic benefits of decisions I have made to adopt new practices and innovate for the environment,” shared Joseph Sisk, Sisk Farms, Christian County. “PCM has also helped me better understand how our practices are closely tied to the supply chain and allows my markets and end-users to trust that our crops will support their sustainability objectives."

Eric Gregory, KDA President, shared, “With much of our distillers’ corn being produced in Kentucky, we see the massive impact that Bourbon has on Kentucky’s ag climate. As these four distilleries unite to support regenerative corn growing practices, I look forward to seeing how new resources and incentives can further propel our local farmers without impacting our bottom line.”

The collaborative effort will also expand PCM’s efforts in Kentucky to benchmark individual farm financials against an anonymized, regional and statewide dataset in an annual Resource Analysis and Assessment Plan. This will be utilized by farmers to understand where they can profitably implement conservation practices. This service is free to farmers, and they will receive a sign-on incentive for their time. The participating KDA distillery partners will provide additional acre-based incentives to corn growers adopting reduced tillage, cover crops, and maximizing their nitrogen use efficiency to reduce the impact of corn production within the Bourbon supply chain.

Together, PCM and the KCGA aid farmers in making economically viable conservation decisions by providing a comprehensive range of data and personalized, expert consultations with PCM’s conservation specialists. To learn more about the program, please visit www.precisionconservation.org.

About the Kentucky Distillers’ Association: Founded in 1880, the Kentucky Distillers’ Association is the Worldwide Voice of Bourbon™. Its diverse and growing membership produces the overwhelming majority of the world’s Bourbon, from historic, global brands to emerging micro distilleries that are fostering the next generation of the Commonwealth’s timeless craft. Kentucky Bourbon is a $9 billion economic engine generating more than 23,500 jobs and attracting over 2 million visits annually through the KDA’s Kentucky Bourbon Trail® experience. A 501(c)(6) nonprofit organization, the KDA maintains an open membership policy, champions a strong commitment to the responsible and moderate consumption of spirits, and fights to curb underage drinking and drunk driving. Learn more at www.kybourbon.com and www.kybourbontrail.com.

KENTUCKY BOURBON TRAIL®, KENTUCKY BOURBON TRAIL CRAFT TOUR®, KENTUCKY BOURBON AFFAIR™, KBT®, BOURBON TRAIL™ and KENTUCKY BOURBON HALL OF FAME® are trademarks/service marks of the Kentucky Distillers’ Association. Enjoy Bourbon like a true Kentuckian – Responsibly.

About Precision Conservation Management (PCM): Precision Conservation Management (PCM) is the premier conservation program of the IL Corn Growers Association, initiated through funding by the USDA Natural Resource Conservation Service – Regional Conservation Partnership Program. PCM provides data-driven conservation recommendations and on-the-ground support for farmers in Illinois, Nebraska and Kentucky. For further information regarding their work, visit their website www.precisionconservation.org.

About Brown-Forman Corporation: Brown-Forman Corporation has been building exceptional spirits brands for more than 150 years, responsibly upholding our founding promise of “Nothing Better in the Market.” Our portfolio of premium brands includes the Jack Daniel’s Family of Brands, Woodford Reserve, Herradura, el Jimador, Korbel, New Mix, Old Forester, The Glendronach, Glenglassaugh, Benriach, Diplomático Rum, Chambord, Gin Mare, Fords Gin, Slane, and Coopers’ Craft. With a team of approximately 5,700 employees worldwide, we proudly share our passion for premium beverages in more than 170 countries. Discover more about us at brown-forman.com and stay connected through LinkedIn, Instagram, and X.

About Diageo North America: Diageo is a global leader in beverage alcohol with an outstanding collection of brands including Johnnie Walker, Crown Royal, Bulleit and Buchanan's whiskies, Smirnoff, Cîroc and Ketel One vodkas, Casamigos, DeLeon and Don Julio tequilas, Captain Morgan, Baileys, Tanqueray and Guinness. Diageo is listed on both the New York Stock Exchange (NYSE: DEO) and the London Stock Exchange (LSE: DGE) and their products are sold in more than 180 countries around the world.

For more information about Diageo, their people, brands, and performance, visit www.diageo.com. Visit Diageo's global responsible drinking resource, www.DRINKiQ.com, for information, initiatives, and ways to share best practice. Follow at Twitter and Instagram for news and information about Diageo North America: @Diageo_NA

About Heaven Hill Brands: Founded in 1935, Bardstown, KY-based Heaven Hill Brands (www.heavenhill.com) is the nation’s largest independent, family-owned and led spirits producer and marketer, the world’s second-largest holder of Kentucky Bourbon, and a 2024 Best Managed Company as appointed by Deloitte Private and the Wall Street Journal. Heaven Hill’s diversified portfolio of brands includes Heaven Hill, Evan Williams, Elijah Craig, Larceny, Old Fitzgerald, and Henry McKenna Bourbons; Rittenhouse Rye Whisky; Deep Eddy Vodka; Admiral Nelson’s Rum; Black Velvet Canadian Whisky; Lunazul Tequila; HPNOTIQ Liqueur; Carolans Irish Cream Liqueur, plus the Samson & Surrey portfolio. Heaven Hill reminds everyone to "Think Wisely. Drink Wisely®.

About Suntory Global Spirits: As a world leader in premium spirits, Suntory Global Spirits inspires the brilliance of life, by creating rich experiences for people, in harmony with nature. Known for its craftsmanship of premium whiskies, including Jim Beam® and Maker's Mark®; Japanese whiskies, including Yamazaki®, Hakushu®, Hibiki® and Toki™; and leading Scotch brands including Laphroaig® and Bowmore®, Suntory Global Spirits also produces leading brands such as Tres Generaciones® and El Tesoro® tequila, Roku™ and Sipsmith® gin, and is a world leader in Ready-To-Drink cocktails, with brands like -196™ (minus one-nine-six) and On The Rocks™ Premium Cocktails.

A global company with approximately 6,000 employees in nearly 30 countries, Suntory Global Spirits is driven by its core values of Growing for Good, Yatte Minahare and Giving Back to Society. The company’s Proof Positive sustainability strategy includes ambitious goals and investments to drive sustainable change and have a positive impact on the planet, consumers and communities. Headquartered in New York City, Suntory Global Spirits is a subsidiary of Suntory Holdings Limited of Japan. For more information, visit www.suntoryglobalspirits.com and www.drinksmart.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250114560645/en/

Katie Bartholomai at katie@runswitchpr.com

Source: Kentucky Distillers’ Association

FAQ

What is the value of DEO's Kentucky corn farming initiative?

The initiative is valued at $2.8 million over five years, involving Diageo North America and other spirits companies to support regenerative corn farming practices in Kentucky.

How many acres will DEO's regenerative farming program cover in Kentucky?

The program aims to implement regenerative corn growing practices on more than 100,000 acres throughout five years.

When will DEO's Kentucky farming conservation program begin?

The program will begin in 2025 with the hiring of additional conservation specialists to maximize management education.

What incentives does DEO offer Kentucky farmers in the new program?

The program offers free services, sign-on incentives, and additional acre-based incentives for farmers adopting reduced tillage, cover crops, and improved nitrogen use efficiency practices.

Which companies are partnering with DEO in the Kentucky farming initiative?

The initiative partners include Brown-Forman, Heaven Hill Brands, Suntory Global Spirits, along with the Kentucky Distillers' Association and Precision Conservation Management.