Broadacre Agriculture Inc., a corporate farm controlling more than 65,000 acres of Saskatchewan farmland, has entered into creditor protection.
Incorporated in 2010, the company owes more than $46 million to lenders, investors and farm suppliers. You can find the complete list of creditors here.
Court of Queen’s Bench in Alberta granted an order on Nov. 4 providing protection for Broadacre under the Companies’ Creditors Arrangement Act. A stay of proceedings was granted. PricewaterhouseCoopers Inc. was named as monitor in the order.
The company is a division of Pike Management Group based in Alberta and Wigmore Farms Ltd., in Saskatchewan.
An affidavit from company chief executive officer Andrew Marshall said the farm faced difficulties starting with its 2011 harvest, and each year financial problems continued.
“The financial prospects of the company are bleak. It was already in a precarious position at the beginning of 2014 and it has continued in a downward spiral,” said Marshall.
The company website said its goal was to become Canada’s preeminent farm operator.
“Our ability to combine the best farm practices with the best business practices will get us there. Building on our decades of agronomic expertise, we provide opportunities for local growers to leverage their own experience and maximize profitability, while farming the way they want to farm.”
All the land was in Saskatchewan and about 56,000 acres were farmed under lease agreements. It grew canola, hemp chickpeas, yellow peas, lentils and wheat. Crop failures and other difficulties placed the operation in difficulty early on and more money was borrowed from various lenders to keep it afloat.
• Agriculture Financial Services Corporation — $1.197 million
• Deluge Landen Financial Services Canada Inc. — $5 million
• Farm Credit Canada — $14.7 million
• Kevin Ulrich — $2.7 million
• Royal Bank of Canada — $2.6 million
• Viterra Financial — $1.9 million
• Wigmore Crop Protection — $5.17 million.