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Attorney: Each farm’s risk management benefits all farmers

RICHMOND—Safety precautions and liability insurance are essential for protecting a small farming operation, producers were told Feb. 26.

“You play a very important role in our food system,” Jesse. J. Richardson Jr. told participants in Virginia’s 2013 Local Foods Network Conference. “People feel safe” buying from local farmers, Richardson continued. “They know who produced the product, so that gives them a lot of comfort.”

But at the same time, he said, “your processes have to be very routinized, and you have to be very careful. If one of you messes up and someone gets sick, … that might taint all of you.”

Richardson is an attorney and an associate professor of urban affairs and planning at Virginia Tech. He frequently speaks on business planning issues to agricultural organizations.

There will always be some risk associated with producing and selling foods, he said, but producers can take steps to manage that risk.

“Safety—and that’s what this all boils down to—is not only good for limiting your legal liability; it’s also good for business.” If a customer has a safe experience on a farm and feels like he or she has purchased a wholesome product, “they’re going to come back. And they’re going to tell all their friends.”

His three recommendations were to emphasize safety in all business practices; purchase liability insurance; and work closely with insurance professionals to assess potential risks on a farm.

Farmers’ markets also should have liability insurance, Richardson said, and should require their vendors to be insured as well.

Contact Pam Wiley, VFBF communications, at 804-290-1128.


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