Bayer said it has decided to stop construction of a new dicamba plant on its site in Luling, La. This decision has no impact on its farmer customers, the company said, adding that it will simply continue to buy the active ingredient and produce the final product XtendiMax in its plant in Muscatine, Iowa, as it has since launching the technology in 2017.

“While a difficult decision, our investment in additional production capacity is no longer as compelling or cost competitive considering the current overcapacity for global production of dicamba,” Bayer said in a statement. “On the other hand, stopping construction enables us to preserve cash and prioritize our investments in new innovation for farmers.”

Bayer added, “We remain fully committed to the Xtend System and will continue with innovation in dicamba formulation and development as well as new traits with tolerance to dicamba. Customers will see no impact as a result of our decision to stop construction of the plant.”

The news comes as the litigation battle heats up over dicamba, with a court recently requiring the end of its use, while the Environmental Protection Agency stated that any supplies farmers had on hand as of June 3 could be used up by July 31.

“While the timing of the court’s ruling is coincidental and unfortunate, it was not a factor in our reassessment of the Luling plant. Bayer continues to stand fully behind XtendiMax and the Xtend system as a cornerstone technology in integrated weed management,” Bayer explained.

Related:Farmer groups file amicus brief for continued dicamba use

The company added that dicamba herbicide technology remains a key component of its crop protection portfolio both today and in the future. “The industry-leading Xtend System and XtendiMax Herbicide with VaporGrip Technology, along with the Roundup Ready System and Roundup herbicides, continue to deliver outstanding weed control and performance to help farmers raise a successful harvest. Over-the-top technologies like the Xtend system enable no-till agriculture, which helps sequester carbon in soil, prevents soil erosion, contributes to soil health and reduces fuel usage among other benefits.”