The persisting COVID-19 pandemic and economic instability continue to impact the global and domestic agriculture industries. MNP’s Spring 2021 Agricultural Industry Outlook helps you understand and track the trends so you can keep ahead of these rapidly changing environments.

There are many reasons a business may become insolvent, many of which are apparent long before it is rendered bankrupt or placed in receivership.

The COVID-19 crisis has had significant impacts on businesses across Canada: From storefronts having to temporarily close due to physical distancing to public corporations who have seen a decline in share prices due to the economic fallout.

If you are an entrepreneur, you understand there are countless factors that can impact on the success of a business. If you have experienced the stress and pain of a failed business venture then you’ve learned that the nightmare doesn’t end the day you close the doors.

All industries have threats that will affect the success or failure of a business. The Agriculture (“Ag”) industry is no different and some would suggest it has more threats that could affect farmers than a typical manufacturing business.

The COVID-19 pandemic and catastrophic collapse in oil prices have devastated organizations across the country and around the world. Businesses that have never experienced financial difficulties before are suddenly facing all sorts of new and frightening questions.

In an article written for Rebuilding Success, MNP LTD’s Sheldon Title, CIRP, LIT, CPA, CA and John Haralovich, CIRP, LIT, CPA, CA, CMA, CFE, recently discussed federal changes to the Wage Earners Protection Program Act (WEPPA) and what increased payments and eligibility adjustments mean for Canadian debtors and employers.

The number of corporate reorganizations that have taken place in the past decade has increased significantly in Canada. There have been several high-profile transactions that have raised the level of awareness of terms such as CCAA (Companies’ Creditors Arrangement Act), NOI (Net Operating Income), Proposal, BIA (Bankruptcy and Insolvency Act) and Chapter 11 to the ordinary citizen.

According to a recent Supreme Court of Canada decision released on Thursday, January 31, 2019, the assets of insolvent exploration and production companies must go first to reclaiming abandoned wells before paying creditors.