Monette Farms Asks Court for More Time

LINCOLN, Neb. (DTN) -- Monette Farms Lt. is seeking more time under creditor protection as one of the largest farming operations in North America continues to try to sell assets as part of a court-ordered restructuring, the Saskatchewan-based farm's owner told a court in Alberta this week.

Farm owner Darrel Monette said in an affidavit filed with the Alberta Court of King's Bench that the sale process is taking longer and a major Arizona farmland sale has yet to close.

Monette asked the court to extend creditor protection from Nov. 13 to Nov. 25, to close transactions and continue a court-supervised sale.

The 350,000-acre Monette Farms became insolvent on April 15, 2026, when $829.5 million in loans came due, according to court documents. When such an agreement matures, it means all outstanding principal and interest on the loan comes due.

A report filed by FTI Consulting Canada Inc., operating as a court monitor for Monette Farms, got approval to start lining up land brokers to sell the 274,000 acres back in June 2026. The land sale includes 61,718 acres of land across Montana, Arizona and Colorado, along with larger acreages in Canada.

Monette also said he's trying to unwind an aircraft sale in favor of a better offer, and that the farm reports having planted about 385,000 acres and harvested about 500,000 metric tons of crops in 2026, according to the affidavit.

Monette told the court his operation still had about 3,000 acres remaining to harvest, primarily in northern Saskatchewan and Manitoba.

"Overall, consistent with the rest of the industry, the group's yields and quality for the 2026 growing season was nominally lower than expected due to late season wet weather through September, which delayed the beginning of harvest across the prairie farms," Monette said about the 2026 crop.

On Oct. 15, 2026, the court-appointed monitor extended the bid deadline to Nov. 3, 2026, and the termination date of the sale process to Dec. 4, 2026.

"The group along with the monitor and DIP (debtor in possession) agent are continuing to review binding bids with the intention of implementing transactions through the end of the year," according to the affidavit.

The court approved the sale of farmland in Arizona on Aug. 19, 2026, but as of Nov. 2, 2026, that transaction had not closed. Monette told the court in the affidavit that he expected the sale to close "imminently" but that certain steps remain, including transferring state-granted leases from Monette Farms Arizona to a buyer.

Monette filed for protection under Canada's Companies Creditors Arrangement Act, which is like Chapter 11 bankruptcy in the U.S., except it provides a court-supervised restructuring and the process usually takes less time to resolve than Chapter 11.

The court approved the farm's application for up to $90 million in debtor-in-possession financing on May 1, 2026, to keep the business running through spring planting.

In an earlier affidavit filed with the court, Darrel Monette said the cost of fertilizer and crop inputs, compounded by suppliers demanding cash on delivery, led to a liquidity problem for the operation.

In his affidavit, Monette explained how his farm reached the point of default.

Between 2017 and 2022, the company expanded using debt, growing revenue from $45 million to $198 million and earnings before interest, taxes, depreciation and amortization, or EBITDA, from $20 million to $83 million.

By 2024, Monette revenue hit $347 million but EBITDA collapsed to just $37 million. He said the crush came from expansion into lower-margin produce and cattle segments, high interest rates and flat real property valuations.

Monette Farms then attempted to raise about $400 million in capital by selling a minority stake. The affidavit said it generated market interest, but the company was unable to find the money.

According to court documents, Monette bought his first quarter of land in 2004 and incorporated the operation in 2009 as Monette Farms. He is the CEO and principal of Monette Farms.

By 2016, he diversified the company, which produces grains, pulses, beef, seeds and produce in different locations.

By the fall of 2020, Monette Farms had up to 450 people working for it operationally and 55,000 seeded acres. Based in Swift Current, Saskatchewan, Monette Farms is now a large ranching and agricultural corporation operating in Saskatchewan, Manitoba and British Columbia.

Monette began expanding into the U.S. under Monette Farms USA Inc. in 2019 in Havre, Montana. Since then, the company expanded its ownership of farming and ranching operations in the U.S. to Billings, Montana, as well as Tonopah, Arizona.

Read more on DTN:

"Judge Approves Monette Land Sale Plans," https://www.dtnpf.com/…

"Monette Farms Faces $900M Insolvency," https://www.dtnpf.com/…

Todd Neeley can be reached at todd.neeley@dtn.com

Follow him on social platform X @DTNeeley

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