Editor's Note: This story was originally posted 5:11 p.m. on May 20. It was updated at 6:07 p.m. on May 20 to include a response from Bayer.

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OMAHA (DTN) -- The U.S. Justice Department on Wednesday announced it has reached an agreement with Bayer CropScience involving the company's loyalty program.

The agreement was announced as the federal government continues to sue some of Bayer's biggest competitors -- Corteva and Syngenta -- over their loyalty programs.

The Justice Department stated in a news release that Bayer agreed to remove "potentially anticompetitive provisions" from its seed loyalty program. DOJ stated the agreement came as part of the Antitrust Division's "ongoing investigation into exclusionary conduct in corn and soybean seed markets."

TWO CHANGES MADE

The Justice Department stated Bayer made two changes to its "Premier Performance Program." First, Bayer's Premier Performance Program previously required independent seed companies to meet sales targets for both corn and soybeans to achieve discounts under its loyalty program. This contractual restraint raised concerns that Bayer was anticompetitively tying corn seed and soybean seed.

DOJ noted that Bayer had dropped the tie between corn seed and soybean seed for the 2025 planting year. In response to the Antitrust Division's concerns, Bayer has now committed to not reinstate the tie for seven years.

Second, the Premier Performance Program also formerly included incentives that could limit independent seed companies' willingness to license technology from Bayer's competitors. Bayer eliminated these potentially anticompetitive provisions from its loyalty program. In response to the Division's concerns, Bayer has committed to not reinstate these incentives, or any substantially similar incentive program, for seven years.

BAYER RESPONSE

"Bayer's U.S. Seed Licensing Business has long offered the Premier Performance Program to its corn and soybean licensees. The program offers licensees the opportunity to earn financial incentives for selling and promoting products licensed from Bayer," a Bayer spokesperson told DTN.

"In 2025, Bayer decoupled the corn seed and soybean seed incentive for the 2025 planting year. In late February of this year, Bayer communicated to licensees that it is eliminating the "Performance Incentive" element of the program for Fiscal Year 2027. Bayer made these business decisions based on its belief that these changes made sense for its licensing business and for licensees. We can confirm that we have committed to the DOJ not to reinstate these program conditions for a period of seven years," the spokesperson said.

TOP PRIORITY FOR DIVISION

"Enforcement in agriculture is a top priority for the Antitrust Division," said Acting Assistant Attorney General Omeed A. Assefi of the Justice Department's Antitrust Division. "We are focused on conduct that poses competitive harm to both farmers and consumers."

Deputy Assistant Attorney General Nicole Sarrine of the Justice Department's Antitrust Division said, "Loyalty programs that discourage customers from switching to alternative sellers pose a danger to competition. We are pleased that Bayer has taken these actions addressing competitive concerns of the Division about Bayer's loyalty program."

Agriculture Secretary Brooke Rollins commended the Justice Department for securing its commitments from Bayer.

"These actions build upon our 2025 USDA-DOJ Memorandum of Understanding strengthening competition in agricultural supply chains for our farmers, who are among the best in the world," Rollins said.

The agreement between DOJ and Bayer also comes while court battles continue with the Federal Trade Commission in litigation against Syngenta and Corteva over their chemical loyalty programs.

The FTC and 12 states sued Corteva and Syngenta in the U.S. District Court for North Carolina Middle District in 2022. The FTC and states claim Corteva and Syngenta are violating both state and federal antitrust laws in the requirements they set for distributors and agricultural retailers to qualify for their loyalty programs. The FTC also alleges the two companies made moves to stop generic pesticides from being sold by distributors.

That case is mired in court filings with attorneys for the two companies withdrawing. The case currently is in mediation and waiting for the judge to rule on a motion for summary judgement filed by Syngenta. The case has been tentatively set for trial sometime in October.

Running parallel to the case brought by the FTC and states is a combined civil case in the same North Carolina federal court brought by farmers against Syngenta, CHS, Nutrien Ag Solutions and BASF.

Also see "Trump Administration, 12 States Seek October Trial in Syngenta, Corteva Pesticide Case" here: https://www.dtnpf.com/….

Chris Clayton can be reached at Chris.Clayton@dtn.com

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