The site, with an existing 164,000-square-foot office and laboratory on 10 acres, can house up to 300 employees, according to a news release.
The site also will include a pilot plant to formulate small batches of biologicals as well as land for a greenhouse and test plots.
Bayer acquired Davis-based AgraQuest, which specializes in biologicals, in 2012.
Monheim, Germany-based Bayer AG also plans to further integrated its Nunhems vegetable seed division under the Bayer umbrella brand.
The new facility will serve as the North American headquarters and research and development center for the vegetable seed and crokp protection divisions of the company.