Earlier this week, Monette Group, which farms more than 400,000 acres in Canada and the U.S. filed for financial protection and is restructuring.
The company filed for creditor protector in Canada via the Companies’ Creditor Arrangement Act (CCAA) and filed Chapter 15 in Delaware Bankruptcy Court.
The Cost of Expansion: Efficiency Erosion and the Leverage Trap
The group’s recent financial trajectory highlights a cautionary tale of aggressive, debt-fueled expansion meeting a volatile economic climate. While the organization successfully scaled its footprint and top-line revenue over the last several years, operational efficiency and debt sustainability have reached a critical breaking point. [all dollars are Canadian]
- The Era of Aggressive Growth (2017–2022)
Driven by substantial borrowing, the Group underwent a massive scale-up, growing revenue from $45 million to $198 million and expanding its cultivated land from 97,000 to 269,000 acres. While total EBITDA initially followed this upward trend, the underlying efficiency—measured by EBITDA-per-acre—began to signal trouble, dropping significantly from its 2015 highs. - Operational Headwinds and Margin Compression (2024–Present)
The transition into 2024 saw revenue climb to a record $347 million across 440,000 acres, yet profitability decoupled from growth. Diversification into produce and cattle, intended to broaden the portfolio, instead acted as a drag on the bottom line. By 2024, EBITDA-per-acre plummeted to a decade low of $83—a nearly 50% decline. This downward trend was exacerbated in 2025; despite a projected $72 million EBITDA, actual earnings reached only $31 million due to a “perfect storm” of poor crop prices, high input costs, and yield losses. - The Sustainability Crisis
The group’s reliance on cheap capital (approximately 3% interest rates) and rising real estate valuations proved successful in a low-rate environment. However, the convergence of flat property values, persistent inflation, and high interest rates has rendered the current capital structure unsustainable. Despite holding significant underlying asset value, the group is now overleveraged, with compressed margins leaving little room to service debt or maintain liquidity.
What Is Monette Group?
Since 2010, Monette Group has been aggressively expanding from its family farm in Saskatchewan to Manitoba and British Columbia in Canada. Current President Darrel Monette took over the family farm in 2013. In 2019, the company expanded into the U.S. first in Montana and then Arizona and Colorado. The company’s website says its core values are: teamwork, efficiency, growth and ‘get shit done.’
With its expansion and diversification, the business expanded into four main brands:
- Monette Farms: growing pulses, wheat, corn, sugar beets, barley, and alfalfa in Canada and the U.S.
- Monette Produce: with growing locations in California, Arizona and Canada
- Monette Cattle: ranches located in Saskatchewan and British Columbia
- Monette Seeds: located in Saskatchewan in partnership with NexGen Seeds
The 18 business entities of Monette Group employ between 300 and 600 people, depending on the season.
Grain production, primarily canola, wheat and durum accounted for over 60% of group revenue in 2024 and more than 50% in 2025. Grain operations dominate the Canadian footprint with 68% of the group’s production occurring in Canada.
Fresh produce operations are primarily located in Saskatchewan and British Columbia, with significant fall and winter production in Arizona. In 2025, produce accounted for approximately 15% of group revenue. Crops include carrots, squash, broccoli, cabbage, pumpkin, cauliflower and watermelon. The group’s produce is mainly sold to Loblaws and the Little Potato Company.
Cattle ranching accounted for approximately 10% of revenue in 2024 and 17% in 2025. Cattle ranching operations focus on Black and Red Angus cattle, including herd breeding in British Columbia and feedlots across Alberta and Saskatchewan.
Seed processing accounted for 19% of revenue in 2024 and 16% in 2025.
Its main crops 10 years ago were green and red lentils, durum, canola and malting barley.
According to the company’s website, Monette Farms’ newest addition is west of Phoenix, Arizona. It’s a certified organic farm and headquarters to Monette Seeds USA.
What Monette Farms Has Said
President Darrel Monette has penned a letter sent to landowners and leasing partners as well as a press release distributed with general counsel as the point of contact. Both are dated April 21, 2026.
In both Monette says this process will allow them to stabilize finances, restructure debt, and continue operating.
The letter read: “This filing is a proactive response to current industry pressures (higher input costs, higher interest rates, and tighter credit) and is not a liquidation.”
It continued: “We are working with our advisors and a court-appointed Monitor to develop a restructuring plan for credit and court approval.”
Per a company press release, the day-to-day farming activities, spring seeding and livestock care are continuing as planned. The release also said all employees are being retained at this time.
The Assets of Monette Group
According to its 2025 financial statements, the group has $1.24 billion of total assets booked at cost (and not reflective of market value.)
As of April 12, 2026, the group owns 274,000 acres of land. In the U.S. Monette owns 61,700 acres in Arizona, Montana and Colorado.
For crop production, it leases 175,000 acres in Canada and 43,000 acres in the U.S. with annual total lease payments of $29.4 million. For its cattle business, Monette holds grazing licenses on 1.2 million acres of land in Canada.
The group owns three seed processing facilities in Canada.
It leases more than 1,700 separate units of farm equipment, with 1,600 units leased from John Deere Financial. Annually, the group spends $26 million on leased equipment.In 2023, it was newsworthy when the business transitioned from Case IH equipment to John Deere equipment in a reported $100+ million deal.
What Else Is There To Watch?
Monette Group is one of the largest privately held farming operations in North America.
The timing of this filing is critical for the farm to put in a 2026 crop. In the CCAA filing, Monette Group said its seed expenses are $40 million per year. To get set up for seeding, Monette’s operations may receive 41 truck loads of product a day (nearly 15,000 truck loads a year).
The main filing is in Canada with proceedings under the Companies’ Creditors Arrangement Act (CCAA) as part of a court-supervised restructuring process. From here is a process by which Monette will work with a court-appointed monitor to develop a restructuring plan for creditor and court approval.
The Chapter 15 filing asks the U.S. court to recognize the Canadian CCAA proceeding as the “foreign main proceeding” which can extend the protection of U.S. assets. It also prevents U.S. creditors from taking legal action such as seizing assets or filing lawsuits.
In the CCAA document, it is stated Monette Group held a $950 million secured credit facility dated December 5, 2018, which matured on April 15, 2026. Repayment of the obligations owing to the syndicate of lenders is a necessary component of the group’s overall restructuring strategy.
The CCAA filing comes after Monette per the guidance of its lending syndicate to sell assets. Two tracts were sold in 2025: in Regina, Saskatchewan for $41.18 million and 17,000 acres of land in Montana for $47.5 million. Additional sales were attempted this this winter, but with only one completed sale of 12,932 acres of farmland in the Stewart Valley of Swift Current, Saskatchewan for $54 million.
In the affadavit, Monette says a restructuring and selling of assets by the court appointed monitor is important to provide an orderly sale of assets and not cause a bulk liquidation which could result in lower values.
The farm has been active on social media:
