Bayer Agrees to Antitrust Changes on Seeds, Loyalty

Today, the Department of Justice announced that during the course of the Antitrust Division’s ongoing investigation into exclusionary conduct in corn and soybean seed markets, Bayer CropScience LLC has removed potentially anticompetitive provisions from its loyalty program. These changes benefit American consumers, farmers, and independent seed companies, which license seed technology from Bayer to produce seeds to meet the needs of farmers. In response to the Division’s concerns, Bayer has committed to not reinstate these provisions for seven years.

“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.”

“I commend Acting Attorney General Blanche and the Antitrust Division of the Department of Justice (DOJ) for securing commitments from input giant Bayer CropScience LLC to remove unfair provisions from its loyalty program for certain seeds,” said U.S. Secretary of Agriculture Brooke Rollins. “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. We must celebrate this great progress, while acknowledging there’s much more work to be done!”

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

Bayer has made two important changes to its “Premier Performance Program,” a key subject of the Division’s scrutiny. First, Bayer’s Premier Performance Program previously required independent seed companies to meet sales targets for both corn and soybean to achieve discounts under its loyalty program. This contractual restraint raised concerns that Bayer was anticompetitively tying corn seed and soybean seed. Bayer dropped the tie between corn seed and soybean seed for the 2025 planting year. In response to the Division’s concerns, Bayer has now committed to not reinstate the tie for seven years.

Second, the Premier Performance Program 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.

Public Release. More on this here.