A Saskatoon special crops broker has been barred from obtaining product in North Dakota.
The state’s Public Service Commission issued a cease and desist order on Oct. 8 that prevents Rayglen Commodities Inc. from buying more grain there.
The order was in response to complaints lodged by two grain companies and a grower association that pointed out that Rayglen was operating in the state without a buyer’s licence.
Ray Germain, president of Rayglen Commodities, was defiant when asked about the incident.
“We have nothing to hide in North Dakota and we’re going to continue to operate there.”
Read Also
Agriculture ministers agree to AgriStability changes
federal government proposed several months ago to increase the compensation rate from 80 to 90 per cent and double the maximum payment from $3 million to $6 million
The company has hired a lawyer and plans to appeal. Germain does not intend to purchase a buyer’s licence because, as a broker, his company never takes possession of the grain.
Rayglen has been conducting business on both sides of the border since it was incorporated in 1993. The company has never had trouble until this fall when it went into North Dakota to find quality flax, lentils and peas.
Germain had a buyer who was willing to pay up to $1 per bushel more than the going rate for flax.
“We went down there and we upset the marketplace this fall without wanting to,” he said.
Rayglen general manager Toby Torkelson said local grain companies reacted by putting pressure on the government to do something about the intruders.
“They’re using the Public Service Commission to basically scare Canadian companies out of doing business down there,” said Torkelson.
“It’s just another example of American protectionism.”
Eric Bartsch, executive director of the North Dakota Dry Pea and Lentil Association, said that was not the intent of his complaint.
He received calls from growers approached by Rayglen who wondered whether the company was licensed and bonded in the state so they could be assured of protection in case something went awry.
“It comes down to protecting our growers if something did happen,” said Bartsch. “If they want to come down and buy that’s great, but they need to be following the same laws and rules as the processors and buyers in North Dakota do.”
Germain said the company can afford a licence, which would cost about $750 US a year, but he doesn’t want Rayglen to be labelled a grain buyer because that could cause friction with some of the firm’s grain-buying clients.
He said his lawyer called the cease and desist order a rarely used tactic that was akin to “using a sledge hammer on a mouse.”
The company has 15 days to appeal.
