Crops broker gets state to back off

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Published: October 28, 2004

A Saskatoon special crops broker temporarily barred from doing business in North Dakota has been vindicated.

The state’s Public Service Commission lifted a cease and desist order levied earlier this month against Rayglen Commodities Inc. The company can now resume grain-sourcing activities in North Dakota.

Rayglen president Ray Germain said the order was rescinded after his firm applied considerable legal pressure on the government agency.

“We responded with a full battery of lawyers down there. We decided that we were being treated unfairly and I guess they saw the light.”

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A state commissioner offered a slightly different take on the resolution of the conflict.

Kevin Cramer said the agency reached a settlement with Rayglen that cleared up confusion over how the company had been operating in the state.

The cease and desist order was initiated by the commission when Rayglen was deemed to be buying grain without a licence, faxing offers to sellers on its company letterhead.

Once the broker convinced the agency that it was only an agent in those deals acting on behalf of licensed North Dakota grain buyers, the order was dissolved.

“It was simply an administrative mistake and in fact they were operating under the law and will continue to operate under the law,” said Cramer.

Germain claims the order was issued in response to pressure exerted by local grain companies that felt Rayglen had “upset the marketplace” this fall by offering substantial price incentives to source good quality flax, lentils and peas on behalf of some aggressive buyers.

He believes the credibility of his Saskatoon brokerage firm has been sullied by the actions taken by the state agency.

“We have notified the North Dakota commission that there could be and probably will be a demand for damages,” said Germain. “At least get my legal fees paid anyway.”

About the author

Sean Pratt

Sean Pratt

Reporter/Analyst

Sean Pratt has been working at The Western Producer since 1993 after graduating from the University of Regina’s School of Journalism. Sean also has a Bachelor of Commerce degree from the University of Saskatchewan and worked in a bank for a few years before switching careers. Sean primarily writes markets and policy stories about the grain industry and has attended more than 100 conferences over the past three decades. He has received awards from the Canadian Farm Writers Federation, North American Agricultural Journalists and the American Agricultural Editors Association.

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