Monette Farms is facing a previously unpublicized hurdle in its restructuring effort, as court documents show the Saskatchewan Crop Insurance Corporation (SCIC) seeking a payment of $1.9 million to maintain the large farm's 2026 crop insurance coverage in Saskatchewan.
The Monette group of companies—one of North America’s largest farming operations—entered creditor protection in April, owing more than $900 million to secured creditors.
Crop insurance dispute
According to an Aug. 10 affidavit from Darrel Monette filed in the Alberta Court of King's Bench, SCIC said it was owed $1.9 million after an audit of 2023/2024 crop insurance payouts uncovered an overpayment to Monette.
The insurer approved its coverage of Monette's 2026 crop prior to the farm entering creditor protection. It later sent a notice setting an Aug. 15 repayment deadline, taking the position that the debt must be settled to keep the farm's 2026 insurance intact.
Court documents published Aug. 13 show Monette Farms, court-appointed monitor FTI Consulting, and the farm's primary lender disputing SCIC’s position. The farm group considers the $1.9 million an unsecured, pre-filing obligation and is questioning whether SCIC has the legal right to terminate or interfere with active 2026 coverage while the farm is under creditor protection.
As of Aug. 22, no subsequent court filings or emergency injunction applications have been published by the monitor. A spokesperson for SCIC tells RealAgriculture they cannot provide or disclose individual producer information.
The disagreement over whether the 2026 crop remains insured could also turn into a non-issue if yields exceed the threshold for triggering a payout.
Land sale process
Meanwhile, Monette is moving ahead with its asset sales. The group is seeking court approval to sell its Aguila Farm in Maricopa County, Arizona, which was listed at US$18.5 million, to Byner Cattle Company. Title transfer remains subject to approval by the U.S. Bankruptcy Court under Chapter 15 proceedings.
Since launching the court-approved Sale and Investment Solicitation Process (SISP) on June 29, marketing teasers and non-disclosure agreements have been issued to 208 potential buyers, according to the affidavit and latest update from FTI.
As of July 31, Monette had drawn $88.2 million from its $90 million interim financing facility to fund operations this summer. Binding bids for the farm's assets are due Oct. 15, with creditor protection extending through Nov. 13.
Prior to entering creditor protection, Monette owned approximately 274 thousand acres and leased an additional 218 thousand acres, with operations in Alberta, Saskatchewan, Manitoba, and B.C., as well as Arizona, Colorado, and Montana. Court documents say the enterprise seeded approximately 390 thousand acres in 2026.
Source - https://www.realagriculture.com
