As it continues to restructure its operations amid financial hardships, Monette Farms now owes $1.9 million in connection to an overpayment of crop insurance. In an affidavit dated Aug. 10, Monette outlined that the Saskatchewan Crop Insurance Corporation (SCIC) identified an overpayment of $1.9 million through an audit of the operation’s 2023/24 insurance payouts. The SCIC has said the overpayment must be paid back in order for the farm’s 2026 crop insurance coverage to be maintained. The SCIC had approved its coverage for 2026 prior to Monette Farms entering creditor protection. The court documents show SCIC sent a notice to Monette setting a repayment deadline of Aug. 15. According to the affidavit, Monette Farms is disputing SCIC’s position and exploring whether it has the ability to terminate the operation’s 2026 coverage while the farming group is under creditor protection. As of Aug. 24, FTI Consulting, Monette Farms court-appointed monitor, has not published any further court filings or applications. Swift Current-based Monette Farms filed for court protection under the Companies’ Creditors Arrangement Act (CCAA) in April. Darrel Monette, the owner and operator of one of Canada’s largest farming operations, said at the time in a letter to landowners and lease partners the move was necessary to continue operations while stabilizing finances and restricting the farm’s debt. The operation’s financial woes, represented through $900 million of debt, were hastened by poor crop prices, increasing costs combined with spoilage and poor yields, according to Monette. Sale of Arizona assets Prior to entering creditor protection Monette Farms owned or leased over 400,000 acres of farmland and employed an average of 425 people annually. As part of the restructuring process, the operation is working on finalizing the sale of its holdings in Arizona. According to the affidavit, Monette intends to sell its Aguila Farm for $18.5 million USD to the Byner Cattle Company. The sale remains subject to the approval of the U.S. Bankruptcy Court. Since the launch of the Sale and Investment Solicitation Process (SISP) on June 29, the affidavit stated that teasers and non-disclosure agreements have been distributed to 208 strategic and financial parties.
