US Executive Order Prioritizes Glyphosate and Phosphorus Production, Boosts Bayer Stock
On February 18, 2026, US President Donald Trump signed an Executive Order classifying glyphosate and phosphorus as essential for national security and food supply. The order mandates the USDA to secure domestic production capacities, addressing concerns over reliance on imports. Bayer, the primary US producer, is expected to benefit, receiving a de facto guarantee for its operations amid ongoing legal settlements over Roundup. Bayer's stock rose initially but faced volatility in trading, reflecting market uncertainty about the approval of the settlement.
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On February 18, 2026, US President Donald Trump signed an Executive Order designating glyphosate and elemental phosphorus as critical for national defense and food security. This decision, based on the Defense Production Act of 1950, mandates the USDA to ensure domestic production, highlighting the risks of reliance on imports exceeding 6 million kilograms annually.
Bayer, as the primary US producer through its Monsanto subsidiary, stands to gain from this protection, receiving a guarantee for its operations. Amid ongoing legal settlements regarding Roundup, Bayer faces potential payments of up to $7.25 billion over 21 years. Although Bayer's stock initially surged, it later experienced sell-offs, reflecting market caution ahead of a court ruling on the settlement.
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