California Attorney General Rob Bonta announced Monday that his office has joined the Federal Trade Commission and a coalition of other state attorneys general in a settlement with pesticide maker Corteva, resolving antitrust allegations that the company's loyalty programs choked off competition and kept prices high for farmers. Under the deal, Corteva will face limits on its loyalty rebate programs, with purchase thresholds capped at 50%, and pay $35 million to the participating states.
The California Attorney General's announcement describes a settlement with the Federal Trade Commission and 12 attorneys general, including Bonta, over Corteva's use of practices that limited competition in the agricultural pesticide market. DTN described the settlement as involving the FTC and 12 states.
According to mlex.com, the Federal Trade Commission and the coalition of state attorneys general reached the antitrust settlement after alleging that Corteva's loyalty program limited distributors' ability to do business with generic competitors seeking to enter the market once Corteva's patents expired. The stipulated order will limit Corteva's loyalty rebate programs for 10 years, with purchase thresholds capped at 50%, the outlet reports.
What Regulators Say Corteva Did
The FTC and state attorneys general alleged that Corteva paid distributors to restrict sales of generic pesticides and competing products, according to CBS2 Iowa. The station reported that the agencies said these programs reduced competition, limited farmers' access to less expensive alternatives, and allowed Corteva to keep prices artificially high. The underlying complaint alleges that Corteva held monopoly or market power in the United States tied to the herbicide rimsulfuron and the insecticide and nematicide oxamyl, as well as acetochlor, per the same reporting from DTN.
The financial terms of the resolution have been laid out across multiple outlets. Corteva agreed to pay $35 million to put to rest the allegations that it blocked competition from generic rivals, according to Law360's coverage of the case. Of that total, Iowa alone is expected to receive about $2.4 million, CBS2 Iowa reported, citing the settlement figures released to that state.
Separate From an Earlier Farmer Payout
This settlement is distinct from an $85 million class-action settlement reached in July involving more than 100,000 farmers, including growers in Iowa, the same CBS2 Iowa report noted, citing the attorney general's office. Corteva also settled a similar lawsuit filed by a group of farmers in June 2026, according to DTN. The original antitrust litigation named both Corteva and rival Syngenta, but mlex.com reports that the newly announced deal resolves only the claims against Corteva, with litigation against Syngenta still ongoing.
What It Means for Farmers
Seeking Alpha reported that the deal could increase competitive pressure on Corteva's more mature crop-protection products, since generic pesticides would gain easier access to distribution once the loyalty program is unwound.
In his statement, Bonta framed the outcome as a win for California growers and small businesses, saying they deserve a competitive marketplace with access to affordable products. The California Department of Justice's press materials describe the settlement as limiting Corteva's loyalty programs to allow generic competition, in addition to the $35 million payment to the plaintiff states, according to a release from the California Attorney General's Office.
