A major agricultural company in southwestern Saskatchewan has filed for protection under the Companies’ Creditors Arrangement Act (CCAA), notifying landowners and leasing partners in a letter sent Tuesday.

Monette Farms Ltd. says the court-supervised restructuring process allows it to continue operations while stabilizing its finances and restructuring debt.

“Priority is to protect the productive capacity of the farm and manage obligations — including land rent — in an orderly, predictable way,” the letter said.

Monette Farms said in a press release Wednesday morning it remains fully operational, with spring seeding, livestock care and day-to-day farming activities continuing across its operations.

The CCAA is a legal process that lets companies continue operating while they restructure debt under court supervision.

“CCAA is not bankruptcy or a shutdown,” the Monette Farms letter said. “It is a federal restructuring framework with oversight intended to give a viable business time to develop and implement a plan, while continuing normal operations where possible.”

Company cites industry-wide financial pressures

According to Monette Farms, the filing is a proactive measure due to current industry pressures, including higher input costs, higher interest rates and tighter credit conditions.

“This process allows us to address financial pressures while staying focused on our people and our responsibilities as farmers,” said Darrel Monette, founder and CEO. “Our priority is to keep farming our land, keep our teams working and position the business for long-term strength.”

The letter states Monette Farms’ current intent is to keep leases and communicate with landowners regarding timing and process.

Monette Farms operates across the Canadian Prairies and in the United States.

(The preceding story was written by David Zamitt-Swift CurrentOnline.com)