Bayer CropScience drops seed loyalty provisions after U.S. antitrust scrutiny

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Bayer seed loyalty changes

Highlights

Bayer CropScience LLC revised its Premier Performance Program after U.S. Department of Justice antitrust concerns, impacting corn and soybean seed markets.
Bayer dropped the corn-soybean sales target tie and related discounts for 2025, committing not to reinstate them for seven years.
Bayer removed loyalty incentives that could deter independent seed companies from licensing competitors’ technology, and committed to suspend similar incentives for seven years.

Justice Department probe drives program changes

The U.S. Department of Justice said Bayer CropScience LLC changed its Premier Performance Program during the Antitrust Division's ongoing investigation into exclusionary conduct in corn and soybean seed markets. The department said the steps are intended to benefit consumers, farmers and independent seed companies that license Bayer seed technology.

Acting Assistant Attorney General Omeed A. Assefi said agriculture enforcement remains a priority for the Antitrust Division, while Deputy Assistant Attorney General Nicole Sarrine said loyalty programs that discourage customers from switching sellers can threaten competition. U.S. Secretary of Agriculture Brooke Rollins said the action builds on the 2025 USDA-DOJ memorandum of understanding aimed at strengthening competition in agricultural supply chains.

One change concerns a previous requirement that independent seed companies meet sales targets for both corn and soybean seeds to qualify for discounts. The department said that structure raised concerns Bayer was tying corn seed and soybean seed, and Bayer dropped that link for the 2025 planting year before committing not to reinstate it for seven years.

Implications for seed competition

A second change removes incentives in the loyalty program that, according to the department, could limit independent seed companies' willingness to license technology from Bayer competitors. Bayer has also committed not to bring back those incentives, or any substantially similar incentive program, for seven years.

Bayer CropScience LLC, headquartered in Creve Coeur, Missouri, is one of the world's largest seed companies and the primary source for traited corn seed sold by independent seed companies. The department's action signals continued scrutiny of commercial practices in agricultural inputs, where licensing terms and rebate structures can shape competition across the seed sector.

The Justice Department is also asking for information on possible antitrust violations in agriculture and other industries through its Citizen Complaint Center.

Our earlier coverage of the $19 million settlement over alleged duty evasion in flat-rolled steel imports described how two Canadian companies and their president resolved claims tied to mislabeling countries of origin to avoid U.S. customs duties from 2019 to 2025. We noted the case’s whistleblower component and how federal agencies framed it as part of a broader push to strengthen enforcement and protect fair competition in U.S. markets.

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