Monette Farms — one of the largest privately held farms in North America — and associated companies were on shifting ground for at least two years before landing in creditor protection last month.
Monette’s companies own about 274,000 acres and lease nearly that much more in the four western provinces and four states. Operations are in cash crop, beef cow-calf and finishing and vegetable production and processing.
WHY IT MATTERS: Very large farms can be challenging to cash flow, with fluctuations of the agricultural markets, weather, input costs and interest.
To address his money challenges, company founder Darrel Monette put land up for sale to generate cash. His largest creditor, a syndicate of lenders led by Scotiabank, worked with him time and again to try to keep the Saskatchewan-based farm afloat.
It didn’t work.
Monette didn’t sell enough land, and the syndicate loan, originally $950 million with $830 million outstanding, came due April 15. Monette owes about $905 million in secured debt, and the nearly 500,000-acre operation faces massive restructuring if it hopes to survive.
So far, Monette has sold land in Saskatchewan and Montana for $173.46 million. Other offerings, such as his ranches in British Columbia, did not receive sufficient bids.
Monette reported assets of $1.24 billion and liabilities of $1.08 billion.
Court documents tell the story.
The Companies’ Creditors Arrangement Act (CCAA) protection order granted Monette $40 million to seed this year’s crop. It came through debtor-in-possession financing, which allows the company to maintain control of its operations while it restructures.
However, in his affidavit filed along with the court application, Monette said the cash flow projection through to July shows a liquidity shortfall of about $90 million.
The first order expires May 1 and the applicants — 18 Monette-owned companies and limited partnerships — are expected to apply for an extension to get more money and more time.
A long list of creditors
The CCAA process also triggered another in U.S. bankruptcy court.
Monette said he expects to seed about 352,000 acres and sell feeder cattle worth $47.5 million and breeding cattle worth $16.4 million, according to the documents. The cattle proceeds would go toward paying the priority secured lender, Farm Credit Canada (FCC).
FCC provided a $30 million revolving loan in 2024, and the syndicate agreed to make the federal crown corporation the priority secured creditor. The outstanding balance is $11.8 million.
“Notwithstanding the occurrence of multiple events of default under the senior facilities agreement, the syndicate has continued to support the group’s operations and restructuring efforts,” Monette said in his affidavit.
There are a long list of other creditors, including most major Canadian banks, credit unions and Export Development Canada. Monette was in debt to other lenders, ranches purchased through vendor take-back mortages, rent payable on 196 farm leases in October and equipment companies on leases on about 1,800 pieces of equipment, mostly through John Deere Financial.
The documents paints a picture of intense expansion and a rapid downfall.
The family farm was established in 1912. In 2013 Darrel, with a degree in agricultural economics and a background selling farm equipment, returned and took over. The farm underwent significant expansion over the next few years.
The affidavit said success led Monette to move to the United States in 2019 and into cattle and produce in 2021. A large vegetable processing facility just outside Outlook, Sask., was built to accommodate expansion into higher-value crops.
However, sources said a significant volume of carrots were left rotting in that facility last year, and vegetable crops in B.C. were similarly left in fields.
Profits ‘substantially burdened’
Monette hired managers for each of his farms and said he preferred to hire younger people who would make the farms their careers.
The grain operations, mainly in Western Canada, produced more than half of the companies’ revenue in 2025, while produce operations, including winter production in Arizona, accounted for 15 per cent. The cattle business accounted for another 15 per cent.
The seed operation, including the elevators in Swift Current, produced another 16 per cent. The company also had a non-operating facility in Tonopah, Arizona.
Court documents indicate that from 2017 to 2023, the companies’ revenue grew from $5 million on 97,000 acres to $198 million on 269,000 acres. From 2024 to present, the revenue increased to $347 million on 440,00 acres.
“Despite higher revenue, the group’s profits have been substantially burdened by expansions into the produce and cattle herding segments,” the documents said.
Monette said his expansion was based on a core vision to feed one billion people for a day through sustainable agriculture.
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