It was a very interesting week in the headlines as two major stories broke in agriculture, signaling what looks like a major shift to move away from big ag. For far too long, monopolies and oligopolies have controlled major sectors of the farming and ranching communities, but a major shift was felt as the spotlight is now directly on how these situations carry more long-term risk and expose how that risk puts producers directly in the crosshairs should market shifts expose positions.
Monette Farms, one of the largest farming operations in North America, recently filed for creditor protection under Canada’s Companies’ Creditors Arrangement Act, a restructuring process similar to Chapter 11 bankruptcy protection in the United States. The Saskatchewan-based operation cited mounting financial pressure caused by rising interest rates, increased input costs, volatile commodity markets, and significant debt obligations tied to rapid expansion across Canada and the United States.
Court filings show the Monette Group owes nearly $900 million to secured creditors after years of aggressive growth that expanded the company’s footprint to roughly 400,000 acres of owned and leased farmland, as well as large cattle, seed and produce divisions. The company reportedly defaulted when a major credit agreement totaling more than $829 million matured in April 2026, leaving the operation without sufficient liquidity to continue normal business operations.
Despite the filing, Monette Farms has emphasized that the company is not entering liquidation and intends to continue operating while restructuring its finances under court supervision. The court approved initial debtor-in-possession financing to help fund the 2026 spring seeding season and stabilize operations while negotiations continue with creditors.
The filing has drawn widespread attention throughout all agricultural industries, serving as a cautionary example of how large-scale expansion, combined with tightening margins and higher borrowing costs, can place even major agricultural enterprises under severe financial strain. According to an AgWeb article, 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.
While exploding from 97,000 acres in 2017, the group now farms over 400,000 acres in Canada and the United States. Revenue followed right along, more than quadrupling. Since current conditions abruptly flip-flopped, revenue dropped by nearly 50%, putting a major strain on the company’s finances. They had projected that in 2025, they’d produce $72 million EBITDA (earnings before interest, taxes, depreciation and amortization), but after closing out the year, they only reached a $31 million due to a perfect storm of poor crop prices, high input costs and yield losses, citing the same Ag Web article. Add this to current interest rates and taxes, and the group is under a huge cash strain and was forced to make the filings.
From a beef producer’s perspective, last week brought a major announcement as USDA Secretary Brooke Rollins and Acting Attorney Todd Blanche announced an investigation into the Big Four meat packers for antitrust violations. These announcements come after years of frustration that’s led to a mass exodus of producers—nearly 17% of producers just in the past decade and nearly 50% of producers since the late 1980s.
Rollins made a major statement signaling the follow-through from President Trump’s direction to investigate market control and manipulation by the Big Four. Blanche followed her statements calling for whistleblowers to come forward. He also stated that the Department of Justice has reviewed over 3 million documents surrounding the issue.
“As ranchers face fewer options for selling their animals, the Big Four grow stronger and stronger; these companies now have an unprecedented ability to wield market power and influence prices paid for cattle, definitely more so than if we had greater competition,” Rollins said during the announcement.
WLJ covered this topic, and more information can be found on our website. I plan to do more follow-up in this column as more information is released.
What this all means is that there is a major shift, and now these consolidations of market controllers are being exposed. Farming operations across North America are facing one of the most difficult years on record. The skyrocketing of fertilizer and seed costs being controlled by only a few suppliers is now exposed. Machinery costs and repair control, like John Deere’s policies, are now exposed as well. When these input suppliers are structuring their pricing based not only on commodity pricing but also on factoring in subsidies, farmers don’t stand a chance.
From an investigative perspective, one would think it shouldn’t take too long when the Big Four are now under investigation. Just think back to all the settlements they’ve agreed to since 2015. Now, input suppliers to farming operations are about to be exposed as well. As Rollins said, “food security is national security,” but I hope it isn’t too little, too late for farmers. For more than 100,00 beef producers, this investigation was too late. How many farmers are going to say the same thing in another decade? The bright side is that change is coming for agriculture because it must, and for the sake of survival, it can’t come soon enough. This past week showed just how detrimental consolidation and competition removal can be in a market sector, but for now, it appears things are about to change. — LOGAN IPSEN
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