Seven years ago, two events set forth a domino effect culminating in Bayer leaders having a potential “tough decision” of whether or not the company will continue to manufacture its legacy herbicide glyphosate product, Roundup.
How Did We Get Here?
In August of 2018, a California jury awarded a man $289 million in damages after he claimed using Roundup caused his cancer. Just a month earlier in July 2018, Bayer acquired Monsanto for $63 billion.
Fast forward to today, and to-date Bayer has paid more than $10 billion to plaintiffs in litigation claiming Roundup as the cause of their cancer.
And per CEO Bill Anderson in a Wall Street Journal interview this week, the company will have a decision in months — not years — about whether it will remain the only domestic producer of glyphosate in the U.S.
Bayer mines elemental phosphorus in Soda Springs, Idaho, formulates glyphosate production in Muscatine, Iowa, and finishes the formulation and production in Luling, La.
“We have paid out over $10 billion in settlements, with no admission of fault or guilt. We stand behind the product. This is part of the litigation industry and the process that we have to make decisions around, says Jess Christiansen, head of crop science and sustainability communications for Bayer.
Why Could The Company Change Its Portfolio Soon?
Anderson became CEO in 2023 and one of his commitments with the new leadership role was to get the glyphosate litigation “under control” by 2026.
“It doesn’t make sense for us to continue down this path long-term if we can’t get some resolution, stability and predictability today,” Christiansen says. “Roundup is a low margin product, and it’s a big volume product. Farmers need it to stay cost effective. It serves a really critical need globally – not just for our U.S. farmers – but at the end of the day we have to make the right business decisions.”
Three-Prongs to Bayer’s Efforts
Bayer has been using a multi-pronged approach to that end.
First, the company continues to defend glyphosate in court cases. In total, there have been about 180,000 lawsuits brought forward, with about 65,000 cases open now. At both state and federal levels, the company continues to defend Roundup as a safe product that has gone through rigorous scientific processes required by the EPA and the law. Bayer budgeted $16 billion for glyphosate lawsuits.
Earlier this month, the company filed a petition with the Supreme Court arguing federal law preempts state laws on failure-to-warn claims. Bayer has previously filed with the Supreme Court, but was denied to have the case taken up by the court. The difference this second time is recent split decisions in the circuit courts leading up to Bayer filing the petition.
Second, starting last year, Bayer has worked at the state level with legislators to introduce legislation to put a focus around pesticide labels and liability. In 2024, Bayer focused the policy efforts in three states: Idaho, Iowa and Missouri. This legislative cycle, they’ve expanded to 10, which includes: Georgia, North Dakota, Missouri, Iowa, Oklahoma, Florida, Tennessee, and others.
“The whole point of the language [in those bills] is to say if a company like Bayer follows the process that the law requires, which is very science based, very regimented, and we follow the EPA’s guidance on what we can and can’t say on the label, then we’ve satisfied the duty or warning of our warnings around health and safety,” Christiansen says. “This is not blanket immunity.”
Third, the company is part of emerging coalitions seeking to bring advocacy and awareness. One such group is Modern Ag Alliance, which is also assisting with the public affairs at the state level.
What Are the Possible Outcomes?
“If we make decisions, it’s because we want to preserve our R&D engine,” Christiansen says. “We can’t keep putting money into the litigation industry’s pockets. The litigation industry could really stifle some innovation. It’s a lot of risk for companies to bring new products if they think they’re at risk of lawsuits that just don’t have any basis or warrant.”
In the Wall Street Journal interview Anderson said, “We’re pretty much reaching the end of the road,” referring to the financial burden of the litigation on the company’s operation.
Christiansen says for Bayer to see a future of producing glyphosate, key milestones will be reached in the next six months.
“There’s not one magical solution. I will say that it’s going to take a few things falling into place for us to be able to continue business as normal,” she says. “It depends on certain things happening in a certain time frame, whether it be from a lawmaker, political side or the courtroom. We need a combination of these things to to happen. There’s not one magical answer here.”
As such, this time frame comes into focus as state legislative calendars wind down in May. The Supreme Court could announce whether it will review the case in June or October.
“We are coming to some of these crossroads. If certain legislation isn’t passed, that’s not great for the predictability and consistency around our regulatory authorities and the science-based process for us as companies, the innovators that are bringing tools to farmers,” she says. “As well as the farmers, they need that stability to make sure they know what they can use, how they can use it — what’s available year in and year out.”
How Does A Glyphosate Decision Affect Seed
“Our seed offerings are not dependent upon Roundup,” Christiansen says. “We heard from our farmers several years ago, and so the way the labels work, it’s a generic glyphosate product or a Roundup product. There’s choice there for a farmer.”
