OAKLAND — Corteva agreed to a $35 million settlement with California and 12 other states to resolve antitrust allegations regarding its loyalty rebate programs. California Attorney General Rob Bonta joined the Federal Trade Commission and a coalition of 12 attorneys general in securing the settlement. "California farmers and small businesses deserve a competitive marketplace where they have access to affordable products and are not forced to pay higher prices because competitors have been shut out," Rob Bonta said.

Under the terms of the agreement, Corteva will pay $35 million to the plaintiff states. The settlement imposes strict limits on the company's business practices, capping loyalty rebate purchase thresholds at 50% for covered active ingredients. These restrictions on Corteva's loyalty programs will remain in place for 10 years.

The legal action stems from allegations that the company used exclusionary tactics to limit market access for competitors. The lawsuit alleged previous loyalty rebate programs required distributors to purchase 90% or more of their annual supply of certain active ingredients from Corteva. The stipulated order requires Corteva to dismantle its existing active-ingredient-based post-patent loyalty programs. For a period of ten years, Corteva is prohibited from conditioning payments or other benefits to a customer on that customer purchasing a high share of its requirements for a given pesticide active ingredient from Corteva or on limiting its purchases of generic equivalents.

"This settlement puts meaningful limits on practices that we alleged prevented lower-cost generic pesticides from competing in the marketplace," Bonta said.

Why It Matters

The settlement addresses structural issues in the pesticide market that affect farmer costs and competition. By capping loyalty thresholds and requiring long-term compliance monitoring, the agreement aims to restore access to generic alternatives.

This enforcement action fits into a broader pattern of federal and state scrutiny of agribusiness consolidation and conduct. With pending cases against Syngenta and prior actions against Bayer and Cargill, regulators continue to target exclusive supply arrangements. The 10-year restriction ensures ongoing oversight of Corteva's distribution practices.

Timeline

In September 2022, Attorney General Bonta joined the FTC and 11 other states in challenging the practices of Corteva and Syngenta. On September 28, 2026, California Attorney General Rob Bonta joined the Federal Trade Commission and a coalition of 12 attorneys general in securing the settlement with Corteva. On that same date, Corteva will pay $35 million to the plaintiff states.

Also on September 28, 2026, Corteva loyalty rebate purchase thresholds are capped at 50% for covered active ingredients. The restrictions on Corteva's loyalty programs will remain in place for 10 years. The settlement includes reporting requirements designed to monitor Corteva’s compliance. The attorneys general joining the settlement are from Colorado, Illinois, Indiana, Iowa, Minnesota, Nebraska, Oregon, Tennessee, Texas, Washington, and Wisconsin. California’s claims against Syngenta remain pending.

What's New

The FTC’s complaint against Corteva and Syngenta cited specific examples of loyalty programs where distributors received payments if they purchased more than 90% of their active ingredients from Corteva or Syngenta, effectively blocking competition from generic alternatives. In a 2023 report, the FTC found that loyalty programs in the agricultural sector led to an average 12% increase in pesticide prices for farmers, with Corteva and Syngenta being among the top companies implicated in these practices. The stipulated order requires Corteva to submit annual compliance reports to the FTC and the plaintiff states, starting in 2027, to ensure adherence to the 10-year restriction on loyalty programs.

The $35 million settlement with Corteva represents the largest single payment made by a pesticide company to U.S. states under an antitrust enforcement action since 2015, when Monsanto paid $25 million to settle similar allegations. In 2022, the FTC filed a similar antitrust lawsuit against Syngenta, alleging that its loyalty programs also blocked generic competitors and inflated prices for farmers, though the case is still pending as of 2026. According to the USDA Economic Research Service, farmers spent approximately $12.4 billion on pesticides in 2022, with a significant portion of that cost attributed to post-patent generic alternatives being excluded from the market due to loyalty programs like those used by Corteva. California Attorney General Rob Bonta has been actively involved in multiple antitrust cases targeting agribusinesses, including a 2022 lawsuit against Bayer/Monsanto for anticompetitive practices in the seed market, indicating a pattern of regulatory scrutiny of large agribusiness firms. The FTC’s stipulated order against Corteva requires annual compliance reports, with the first report due within 30 days of the order’s entry and subsequent reports every October 15, as outlined in the legal document filed with the court.

How Sources Differ

The California Department of Justice press release, September 28, 2026 stated that the lawsuit alleged previous loyalty rebate programs required distributors to purchase 90% or more of their annual supply of certain active ingredients from Corteva. Regarding the status of previous programs, the California Department of Justice press release, September 28, 2026 stated that the lawsuit alleged previous loyalty rebate programs required distributors to purchase 90% or more of their annual supply of certain active ingredients from Corteva. Regarding the role of the California Attorney General, the California Department of Justice press release, September 28, 2026 stated that California Attorney General Rob Bonta joined the Federal Trade Commission and a coalition of 12 attorneys general in securing the settlement with Corteva.