INSURANCE COVERAGE AND CUSTOM FARMING

Article Written By: Chad G. Marzen

With custom farming, a landowner pays a custom operator a set rate to complete all the mechanical operations on the farm. In a custom farming arrangement the landowner provides all the seed and fertilizer for the custom operator but typically retains the profits produced from the farm. Custom farming is also an arrangement that is utilized in livestock production as well. Some farms utilize custom feeding arrangements for livestock production, where a custom feeder provides a facility and labor force to care for the livestock while the other farmer provides feed and veterinary services. With any agricultural operation, farmers can better manage liability risk by obtaining adequate insurance coverage. At least one commentator has comprehensively analyzed the provisions of the farmer’s comprehensive liability policy. However, there is a gap in the literature relating to legal issues involving insurance coverage and custom farming.

This article is intended to fill in the gap in the literature and provide a comprehensive examination of several of the key issues relating to insurance and custom farming that have been litigated. Insurance coverage and custom farming intersect in a number of areas, such as the agricultural use of an automobile, the duty to procure insurance coverage, whether the training of a horse constitutes custom farming, which particular activities constitute custom farming, and the effect of custom farming exclusions and endorsements in insurance policies.

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