Nebraska, FTC Secure Pesticide Price Protections in Corteva Antitrust Case
Nebraska Attorney General Mike Hilgers settled crop protection litigation against Corteva, Inc. for $35 million. Nebraska, in partnership with the Federal Trade Commission and 11 other attorneys general, sued Corteva in 2022, alleging its crop protection loyalty programs violated federal and state antitrust law by blocking farmer access to cheaper generics and increasing the price farmers paid for crop protection products containing acetochlor, oxamyl, and rimsulfuron as the active ingredient.
Under the terms of the settlement, Corteva Inc. will dismantle these programs for 10 years and:
Prohibits Corteva from implementing any loyalty programs that condition loyalty payments on distributors purchasing greater than 50% of the distributor’s crop protection requirements for any active ingredient where Corteva’s patent has expired.
Requires Corteva to provide the Federal Trade Commission and States with annual reports showing their compliance with the settlement for 10 years.
Requires Corteva to design and maintain an antitrust compliance program for 10 years.
“This week’s settlement reflects my office’s ongoing commitment to tackling affordability for Nebraskans. Lowering the costs of stable crop protection products and increasing generic entry means farmers and consumers will benefit from competitive pricing and will keep more of their hard-earned money in their pockets,” said Attorney General Mike Hilgers. “We are pleased to settle this litigation with Corteva and look forward to seeing the benefits that only robust and fair competition can provide.”
Nebraska expects to receive over $10 million of the $35 million settlement.
The settlement resolves the litigation against Corteva, Inc. The Federal Trade Commission, Nebraska, and the 11 other attorneys general continue to litigate against Syngenta Crop Protection AG, Syngenta Corporation, and Syngenta Crop Protection, LLC, for similar allegations. A copy of those allegations can be located here.