Why is this project
important?
The future for most
small scale farmers and ranchers lies in the direct marketing of their
product, at least in reducing the number of steps from producer to
consumer. Traditionally, there are many players in the
distribution and marketing of food products so that the liability for
harm is pretty much removed from the producer. The Marketer,
processor, distributor, and retailer are all parts of an extended food
chain, thus dispersing the locus for liability for harm to the consumer. Direct marketing changes this picture. Now the responsibility for
harm comes back directly to the farmer/rancher who is the producer,
marketer, processor and distributor. The buffer for liability has
now evaporated.
Most small farms are
sole proprietorships. The farmer/rancher owns and operates the
business by themselves. This structure is especially suited for
this type of business but there is no protection from debts and
liabilities of the business. If a customer does experience harm
related to the farm enterprise and seeks damages, then the owner’s
assets are not protected by the business structure.
Consequently, our “New
American Farmer” must take steps to prevent harm and to have appropriate
liability insurance in place to protect against potential lawsuits. Understanding insurance coverage and costs is the first step in
obtaining appropriate protection. This information also is
important for marketing and pricing. Insurance is a necessary cost
that must be included in pricing of products much the same as seed,
labor or fertilizer.
There is considerable
apprehension and antagonism in dealing with insurance agents. Some
of this concern comes in part from the farmer/rancher’s lack of
knowledge about insurance and the insurance business, and in part from
the limited experience most insurance agents have with small farms.
An agent’s typical image of a farm is one where a crop is planted,
harvested and taken to the appropriate warehouse or sale yard. Farms that direct market their products are a relative “unknown” to most
agents. This material explains why insurance is important and how to
work with your insurance agent to get the protect you need ant the
lowest possible cost.
Information on the various elements of a farm liability policy is
included as well as how to read a policy to determine what and what
isn’t included in your policy. What will I
learn from viewing the site?
These documents
cover the three main things that might get farmers/ranchers into
trouble: premise liability, product liability, and employment and
labor. These documents present the issues inherent with each area of
liability and give ways the farmer/rancher can reduce the
possibility of liability for harm to the consumer.
When viewing this
site you will observe that direct farm marketing and agritourism
are integral components of agriculture in Washington. These
materials will help to promote these trends and will show why
appropriate protection is necessary and helpful in marketing
directly to consumers.
These materials
will provide a framework for understanding and analyzing potential
liability risks including premise and product liability and
obligations with respect to employment and labor.
Included in these
materials are checklists that help to identify and reduce the
possibility of harm to consumers.
Information is
included on the insurance industry and as well as a list of
questions that farmers/ranchers need to consider as they negotiate
with an agent/broker on a farm policy.
Various elements of
a farm liability policy are included as well as
how to read a policy to determine what and what isn’t included in
your policy. |