Bayer CropScience has agreed to remove several provisions from its seed loyalty program following a federal antitrust probe, the U.S. Department of Justice announced Wednesday.
The changes, which Bayer has committed to maintaining for at least seven years, follow an ongoing investigation by the DOJ’s Antitrust Division into exclusionary conduct within the U.S. corn and soybean seed markets. Officials say the move will immediately benefit American farmers and independent seed companies by lowering barriers to competition.
“American farmers deserve competitive markets, not contractual restrictions that limit choice and innovation,” Associate Attorney General Stanley Woodward said in a statement. “This Department of Justice will use every appropriate tool to protect farmers and preserve competition.”
The federal scrutiny centered on Bayer’s “Premier Performance Program.” According to antitrust officials, the loyalty program previously forced independent seed companies to meet strict sales targets for both corn and soybean seeds to qualify for discounts.
Investigators raised concerns that this structure anticompetitively tied the two crops together, effectively squeezing out alternative options.
Bayer has formally committed to a seven-year ban on reinstating the practice.
Additionally, the DOJ targeted incentives within the program that discouraged independent seed companies from licensing technology from Bayer’s competitors. Bayer has eliminated those provisions and agreed not to revive them, or any substantially similar incentive program – also for the next seven years.
Decision Signals Crackdown On Monopolistic Practices
Federal officials emphasized that the resolution signals a broader, ongoing crackdown on monopolistic practices in the agricultural sector.
“Enforcement in agriculture is a top priority for the Antitrust Division,” said Acting Assistant Attorney General Omeed A. Assefi. “We are focused on conduct that poses competitive harm to both farmers and consumers.”
The settlement highlights a deepening partnership between federal antitrust regulators and agricultural authorities. U.S. Secretary of Agriculture Brooke Rollins praised the outcome, linking it to a 2025 joint initiative between the two agencies.
“I commend Acting Attorney General Blanche and the Antitrust Division of the Department of Justice for securing commitments from input giant Bayer CropScience LLC to remove unfair provisions from its loyalty program for certain seeds,” Rollins said in a statement. “We must celebrate this great progress, while acknowledging there’s much more work to be done.”
Fertilizer, Farm Equipment, Pesticide Manufacturers Served Notice
Stephen Vaden said USDA has been concerned about industry consolidation in various agricultural sectors and how rising prices have been passed on to farmers.
“Our biggest challenge going forward is to work on these input costs... I’m also thinking about seeds, chemicals, and especially farm equipment. We’ve got issues in all of those sectors,” the USDA deputy secretary said during a recent Farm Journal report with Tyne Morgan. See USDA Deputy Secretary Stephen Vaden Says High-Level Washington Meeting Puts Fertilizer Industry on the Spot.
Vaden grouped equipment and seed costs into the broader conversation about rising farm input expenses and market concentration that farmers have faced for years.
Specific to fertilizer, Vaden says USDA’s message to fertilizer companies is simple: “Be part of the solution, don’t be part of the problem.”
The Justice Department stated that its broader investigation into the agricultural seed market remains active. The Antitrust Division encourages anyone with information regarding anticompetitive conduct or antitrust violations to contact its Citizen Complaint Center at 1-888-647-3258 or via email at antitrust.complaints@usdoj.gov.
