One of North America's largest private farming operators is selling off thousands of acres of land to repay creditors and stabilize its finances. Monette Farms Ltd., based in Swift Current, Saskatchewan, is liquidating all or part of its 274,000-acre portfolio across Western Canada and select U.S. states under court-appointed insolvency monitors.
Debt Reduction Strategy
The company, which owes less than its assets are worth, will continue operations after selling a significant portion of its land. Monette Farms sought creditor protection under Canada's Companies' Creditors Arrangement Act (CCAA) in April and has since been restructuring to address a $1-billion debt burden.
Farmland properties in Saskatchewan, Manitoba, and British Columbia are expected to be listed by June 29, with buyer bids accepted through the third quarter. Assets in Montana, Arizona, and Colorado will also be sold. However, the company is not required to sell property in Alberta, where CEO Darrel Monette says the business is primarily based.
Business Operations and History
Monette Farms focuses primarily on grain farming, with smaller segments in produce, cattle ranching, and seed processing. The business began as a family farm outside Swift Current in 1912. Monette took over in 2013 and expanded across Western Canada, entering the U.S. market in 2019.
According to court documents, the company's growth strategy heavily relied on debt-driven land acquisitions. Monette stated in an April 17 affidavit to the Calgary Court of King's Bench that this approach was sustainable with lower interest rates around three percent and rising property valuations.
Financial Challenges
Adverse farming conditions in 2024 and 2025 dried up free cash flow. Poor crop prices, higher costs, spoilage, and low yields significantly impacted profits. Monette Farms has defaulted on loans multiple times while attempting to sell Saskatchewan farmland. Without immediate financing, the company would be unable to seed or harvest, according to April court documents.
The business owes $1 billion in consolidated liabilities, with the Bank of Nova Scotia as the largest lender, claiming an $830-million debt that came due just before the CCAA filing.
