Prairie-based farming operation files under CCAA, citing high costs, volatile markets, and rising interest rates.
Monette Farms Ltd., one of the largest privately held farming operations in Canada, has filed for creditor protection under the Companies’ Creditors Arrangement Act (CCAA), citing sustained cost pressures, volatile commodity markets, and higher interest rates as key factors behind the decision.
The Saskatchewan-based operation filed its application with the Court of King’s Bench of Alberta on April 21, 2026. The court granted an initial order that allows the company to continue operating while it works with a court-appointed monitor to develop a restructuring plan for creditors and the court.
In a letter sent to landowners and business partners, company president and chief executive officer Darrel Monette emphasized that the filing is not a bankruptcy or liquidation, but rather a court-supervised process intended to stabilize finances and restructure debt while maintaining farming operations.
A Large and Complex Operation
Monette Farms operates across Saskatchewan and other western provinces, with additional farming and ranching assets in the United States, including Montana, Colorado, and Arizona. Court documents describe the broader Monette Group as owning or leasing more than 400,000 acres of farmland, placing it among the largest farm operators in North America.
The company expanded rapidly over the past decade, diversifying beyond grain production into cattle ranching, feedlots, produce, seed processing, and other agribusiness ventures. While this growth increased revenue, it also added operational complexity and exposure to market volatility, according to analysis cited in court filings and industry reporting.
Financial Pressures Come to a Head
According to statements from the company and court documents, Monette Farms has faced mounting challenges over the past two years. Higher interest rates significantly increased borrowing costs, while rising input prices and lower commodity margins tightened cash flow. Efforts to sell land and right-size the business during the winter of 2025 and 2026 did not meet agreed-upon milestones (Read: Monette Farms Puts 16 Saskatchewan Farm Packages Up for Sale in Major Land Offering), further straining liquidity.
Court filings indicate that the company held a secured credit facility of approximately $950 million, along with an additional loan from Farm Credit Canada that matured in mid-April 2026. Defaults under lending agreements prompted the need for immediate restructuring protection.
Parallel filings were also made in the United States under Chapter 15 of the U.S. Bankruptcy Code, a procedural step that recognizes the Canadian CCAA process and allows coordination with U.S.-based assets and creditors.
Operations Expected to Continue
Monette Farms has stated that day-to-day farming activities, including spring seeding, livestock care, and land stewardship, are continuing during the restructuring period. The company has also indicated that maintaining lease arrangements and communicating clearly with landowners is a priority as the process unfolds.
Industry observers note that while financial stress is widespread across Canadian agriculture, the scale and debt structure of very large operations can create added vulnerability during periods of economic tightening.
Looking Ahead
The CCAA process will involve ongoing financial disclosure, negotiations with creditors, and court oversight, with FTI Consulting Canada Inc. appointed as the monitor. The initial stay of proceedings provides the company with time to propose a restructuring plan aimed at restoring long-term financial stability.
For farmers, landowners, and suppliers across the Prairies, the restructuring of such a large operation is being closely watched. While Monette Farms maintains that it intends to emerge as a stronger and more sustainable business, the outcome of the court-supervised process will have implications well beyond the company itself.