By Joanna Voigt

Insurance and liability issues are critical for any direct marketing farm or ranch to consider. Direct marketing, by definition, puts the producer in direct contact with the customer. This arrangement has many positive implications for the farmer/producer, including increased profits, more control over how and where products are sold, and personal relationships with customers that help create loyalty. While these positives generally outweigh the negatives, it is wise for a producer to consider potential pitfalls at the outset of a direct marketing venture, in order to diminish impacts should they arise.

“Farmers increase their risk and exposure to lawsuits by marketing their products directly to consumers,” writes the University of Wisconsin, Cooperative Extension Emerging Agricultural Markets Team. “The public has become increasingly conscious of legal actions, and when faced with a problem, more people are willing to pursue remedies through the legal system.” While this may sound daunting, it is useful information to know so that appropriate steps can be taken to safeguard against such an occurrence. Adequate insurance and liability protection can help reduce potential economic risks associated with farming and direct marketing.

What different types of insurance are there? Which will work best for your agricultural enterprise?

For information and resources related to these and other risk management topics, CLICK HERE to print or download the Kansas Rural Center’s resource document: Insurance and Liability for Agricultural Enterprises.

This resource document  is an excerpt from Finding Your Niche, A Marketing Guide for Kansas Farms, published in January 2013 by the Kansas Rural Center. You may CLICK HERE to view the guide’s full Table of Contents and print or download other resource documents. Finding Your Niche: A Marketing Guide for Kansas Farms offers a great starting point for envisioning the potential your farm has to increase and respond to local demand.

To receive a printed and bound copy of the 200+ page guide, please order here or contact the Kansas Rural Center at 785-873-3431. A limited number of copies are available for a suggested fee of $25 to help cover printing, shipping and handling costs.