Need for clarity over liability for contractors

Potential pitfalls, disputes and consequences of contract farming arrangements have been spelled out by a farm insurance company.

Farmers and Mercantile points to responsibility for “grey areas” such as the maintenance of fuel or liquid fertiliser tanks, environmental liability, or equipment supplied by the landowner yet only ever used by the contractor, such as grain-drying equipment.

Company director Nigel Wellings, said that with growing numbers of landowners contracting their farm operations and more farmers taking on contract work it was necessary to understand the point where the insurance liability passes from the landowner to the contract farmer.

He said a written Contract Farming Agreement (CFA), needed to spell out everything, from who is responsible for health and safety requirements, to ensuring adequate public and employers’ liability cover, and agreeing responsibility for crop and input insurance.