Is Monette Farms like Bernie Madoff?

[BighatPete]

Using an anon for this one. There has been a lot of discussion about them in this forum and there is no definitive answer if Monette is like Elon Musk or Bernie Madoff. Something doesn't pass the smell test.

All signs point to Monette being backed by investors that are using farmland as a store of value rather than to make money on the farm operations. The forum seems to have narrowed it down to either Jim Pattison or Chinese investors. Pattison could work, but why would he need Monette to do it and he already owns a ton of land.

So if you go with China, why doesn't anyone know if it's true. This would line up with Chinese investors investing in Toronto and Vancouver, but they are more blatant about that. There have been rumors he was linked to Grant Kook who has Chinese investor contacts.

Let's review the facts:

• They are very young and weren't independently wealthy. How could they scale so fast?
  • Large landholders like Ted Turner, Andjelic, and Bill Gates were are all old.
• How did they get such large amounts of credit from the big banks and government?
  • What did they use for equity or collateral? Is it all self funded or are there investors?
• Do they even know what they are doing?
  • Per various anecdotes, it seems they are buying land that is mediocre at way above market prices.
  • Even with commodity prices going down, they are still going full throttle.
• Why would they buying at rapid rates across North America before even onboarding new acquisitions?
  • If someone buys a giant farm, wouldn't they make sure it's cash flowing and going well before switching their attention to a new location or farm?
• What is the deal with his health company (Lumeca) and government connections?

[Robertbarlage]

Maybe this

[Robertbarlage]

But who cares really eventually I’ll buy their used shit for the farm

[WiltonRanch]

Doesn’t pass the smell test it seems. I don’t like engaging in shaudenfreude and would rather like to learn how people become successful. If I was jealous I’d be no better than a socialist. However, this situation boggles my mind how these guys have attained so much bought ground in such a short time. You’d think fcc and other lenders would be a bit hesitant to float another mega farm after the Pike fiasco without some deep pockets backing them. What little knowledge in my backyard, anyone who grew at this kind of rate did not last. The ultra big operations that exist took multiple generations, good management, and decent land in the mix.

In Europe namely the FSU there are large concerns owned by Western European firms which crop large tracts. I wonder with the Crimean invasion of 2014 if some of that money didn’t end up coming this way.

[bucket]

Scott Moe was sitting their boardroom singing praises of their farming methods , that tells you something.

[Druther]

It's Big Ag...who's involved? Just a thought...big equipment company...big fertilizer company...big chemical company...big grain company and big bank...pretty good recipe if you have all the right ingredients...

[fjlip]

Unless LAUNDERING....all other investment still has to be profitable.

[bucket]

Some how it made sense to silage their canola crop rather than run their X9s over it. After breaking tame pasture that couldn't support 3 pairs per quarter.

[blackpowder]

Some how it made sense to silage their canola crop rather than run their X9s over it. After breaking tame pasture that couldn't support 3 pairs per quarter.

Wow....

[AlbertaFarmer5]

If it is Chinese money. They really don't care about return on investment. They are simply trying to get their money out of the country, and into a hard asset. That is why so many of the properties in Vancouver and Toronto sit empty.
Over paying for farmland and getting no annual revenue is still far preferable to risking losing it all in China.

[AlbertaFarmer5]

Is it worth pointing out that the thread next to this one asking why there have been no posts on this forum for days.

Apparently no one wants to discuss commodity marketing.
Yet when someone starts a thread speculating about BTOs, it gets a flurry of activity.

[WiltonRanch]

Yes these Chinese billionaires if they even lose a good chunk of the investment parking it here is better than leaving it at home.

[furrowtickler]

Be interesting to see what the end game for mega farms like this is .
Sell out as one big package ?
Parcel it out in the 30-40,000 farm units ?
if it keeps going who will take that over when he wants to cash out ?
in the meantime they definitely have an effect in every corner of the province now .

[BighatPete]

If it is Chinese money. They really don't care about return on investment. They are simply trying to get their money out of the country, and into a hard asset. That is why so many of the properties in Vancouver and Toronto sit empty.
Over paying for farmland and getting no annual revenue is still far preferable to risking losing it all in China.

I think this is the only thing that makes sense. Monette is clearly a straw man for someone else. As others have said, it takes generations to amass this level of holdings.

Although it's totally normal to have your wife, brother and family work with you, in this case, I'm guessing the family is the only party that knows the secret and that's why there has never been clarity.

If Monette was really the greatest land entrepreneur, everyone would marvel at their astute purchases, but the opposite is happening.

[BighatPete]

Be interesting to see what the end game for mega farms like this is .
Sell out as one big package ?
Parcel it out in the 30-40,000 farm units ?
if it keeps going who will take that over when he wants to cash out ?
in the meantime they definitely have an effect in every corner of the province now .

Not sure who has the money to buy hundreds of the thousands of acres that doesn't cash flow. I don't think the strategy works if you ever need to find a buyer.