Saskatchewan (Rural Roots Canada) – Monette Farms Ltd., one of the largest farming operations in North America, has filed for creditor protection as it seeks to restructure amid ongoing financial pressures.
The Saskatchewan-based company filed its applications in Calgary on April 21 under the Companies’ Creditors Arrangement Act (CCAA). It continues to operate during the proceedings.
In a letter to landowners and stakeholders, Darrel Monette, president of Monette Farms, says the restructuring process “allows us to continue operating while we stabilize finances and restructure debt. Our priority is to protect the productive capacity of the farm and manage obligations, including land rent, in an orderly, predictable way.”
“This filing is a proactive response to current industry pressures (higher input costs, higher interest rates, and tighter credit) and is not a liquidation,” explains Monette. “We are working with our advisors and a court-appointed Monitor to develop a restructuring plan for creditor and court approval.”
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He stresses filing an application under the CCAA is not bankruptcy or a shutdown, but a federal restructuring framework with court oversight “to give a viable business time to develop and implement a plan, while continuing normal operations where possible.”
Court documents show the scale of the operation, with the Monette Group described as one of the largest private farming businesses in North America. It operates in multiple provinces, including Alberta, Saskatchewan, Manitoba, and British Columbia, as well as in the U.S. states of Montana, Colorado, and Arizona. It owns approximately 274,000 acres and leases about 218,000 more, while maintaining seed-processing and produce-storage facilities.
The restructuring plan includes debtor-in-possession financing, which will allow the company to continue operations, including seeding this year’s crop. Without that financing, court documents indicate crops would not be planted, land would lose income potential and decline in value, and some 600 seasonal employees could lose their jobs.
In the meantime, the Canadian Grain Commission will not renew Monette’s primary elevator license in Swift Current, Sask., effective May 1.
In a release, it says any producers owed money for grain deliveries should contact them. It adds that any producers who have open contracts with Monette should contact the court-appointed monitor, FTI Consulting Canada Inc.
