Issues of Concern

Two listening sessions were held in December 2005 to obtain from farmers/ranchers their concerns and issues with regard to liability and risk management when direct marketing products. Detailed notes were taken at these sessions (Spokane and Puyallup, Washington) and based on that information we identified six issues that needed to be addressed in the March workshops or through legislation.

1. The assessment of risk by insurance companies seems to be inconsistent or somewhat arbitrary. Are there actions producers can take or discussions producers may have to account for a more accurate assessment of risk?

2. There are issues of liability when the public is invited to the premise for education, to purchase or pick foods/products, or for entertainment and lodging (agritourism). What risks are involved and how does the farmer/rancher manage these risks?

3. There is a potential risk that food products purchased directly from the producer may result in harm. What risks are associated with various types of processed and/or fresh products including fruits, vegetables, dairy, livestock and poultry products? What steps can the producer take to minimize these risks and associated liability for harm?

4. There may be general practices the producer can incorporate to make the premises or product safe. What common practices can the farmer/rancher adopt to reduce risk on the farm and hopefully impact insurance premiums? A possible tool would be a somewhat itemized check list (e.g., with regard to having children on the premises) that would help the producer minimize the potential for harm.

5. Most citizens do not have an adequate understanding of the insurance industry to effectively work with agents or brokers. What language, concepts and practices need to be considered when negotiating with insurance representatives?

6. There are a number of legal structures farmers/ranchers can adopt to manage risk. What are the strengths, weaknesses and costs associated with these legal options?