Insolvency
If you’re a Canadian farmer struggling with overwhelming debt, you’re not alone. In fact, according to Statistics Canada data released in June 2023, Canadians owe roughly $1.85 to consumer credit, mortgage, and non-mortgage loans for every dollar of disposable income.
The current economic environment, marked by high inflation, rising interest rates, and geo-political conflict has made it especially difficult for business owners to stay on track or grow at anticipated rates. Farm owners are feeling the pinch and uncertainty can exacerbate an already taxing situation.
Insolvency will look different for every farm. Whether it’s engaging in restructuring or filing for bankruptcy, there are various options available to farmers in need of a financial solution.
MNP’s insolvency team of Licensed Insolvency Trustees (LITs) and advisors can assist in determining your options, what approach is the best for you and your operation, and how to help you look towards financial freedom in the future.
What's your challenge?
Struggling to pay bills
If making ends meet has become impossible, it’s important to act sooner than later. It can be incredibly stressful trying to manage the day-to-day operations of your farm when fielding calls from creditors. MNP’s team can help you assess your financial situation and find a solution that will get you back on track.
Planning for Retirement
Financial worries can make it difficult to plan for the future of your farm or your retirement. If your retirement goals are seeming more unrealistic, knowing your options and the realistic timelines that you can achieve them will give you peace of mind.
How we can help
Exploring options for Bankruptcy or Restructuring
Even though it might not feel like it, there are ways to resolve your debt. Our experienced team of LITs will assess your farm’s finances, help you decide which option is the best for you, and will be there to support you throughout the process.
Comprehensive Transition planning and Insolvency Management Solutions
Setting goals for your retirement and determining the steps it will take to reach them doesn’t have to be scary. An MNP LIT will walk you through the process and show you what your future could look like. With the added help of MNP’s succession team, planning for your retirement after insolvency can be extremely rewarding.
Frequently asked questions
You may be insolvent if your farm’s liabilities exceed its assets, and you’re unable to meet your financial obligations when they come due. Meet with an LIT to determine what insolvency options are available for your farm.
Not necessarily. You will likely be able to retain your farm through repayment negotiations and other arrangements. The protection of your personal assets depends on several factors, including your farm’s legal structure. Meet with an LIT to determine what insolvency would options are available for your farm and to safeguard your assets as much as possible.
While this may be a solution, consult with an LIT before selling assets to ensure you’re following all relevant laws and guidelines.
A Division I Proposal is a formal agreement to pay your creditors over a certain period of time. It will allow you to continue operating your farm while providing relief from immediate financial pressure. An LIT is essential to this process and will present the proposal to your creditors.
Your employees may be eligible for unpaid wages, vacation pay, and severance through the Wage Earner Protection Program (WEPP). An LIT can help you understand your employees’ rights and decide the best way to proceed to protect them and yourself.
Yes. With proper planning, financial restructuring, and effective management, it’s possible. Working with an LIT will significantly improve your chances of a successful recovery and future financial stability for your farm.
Insights
-
Progress
April 25, 2025
How conflict can be good for your farms future
Family farms thrive when they tackle conflict early. Tough conversations build trust, sharpen decisions, and protect the farm’s future for the next generation.
-
Agility
April 17, 2025
How the agriculture sector can best prepare for tariffs and market uncertainty
Discover how farmers and agribusinesses can navigate tariffs, market shifts, and uncertainty through risk management, financial planning, and operational resilience.
-
Progress
April 11, 2025
The seven traits of successful farm families: What sets them apart
What makes farm families thrive across generations? It’s more than hard work — it’s planning, communication, and adaptability. Here are seven traits of success.
