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Managing Risk on Farms Open to the Public
Table of Contents
IntroductionThis publication is written for all farm businesses that invite customers onto the farm for such on-farm activities as direct farm marketing, pick-your-own (PYO), on-farm entertainment (wagon rides, hay rides, haunted houses, mazes, pony rides, slides, tricycle tracks, nature walks, enchanted forests), group functions (weddings, corporate picnics, school tours, birthday parties, family reunions, corporate retreats), food service (snacks, catered meals, tea rooms, restaurants, bakeries), and sales of value-added or retail products. Farms that invite customers onto the farm are often known as "agritourism"
enterprises. Agritourism can be defined as the act of visiting a working
farm or agribusiness operation for the purpose of enjoyment, procuring
a product or service, education or personal involvement in the activities
of the farm operation. There are safety risks and hazards involved with any business venture.
Operating an agritourism business is no exception. This Factsheet will
identify the types of risks and outline several ways to minimize them.
It will also look at contingency planning and preparedness for emergencies.
Finally, it will examine ways to transfer risk away from agritourism farm
owners through insurance coverage. | Top of Page | Balancing Risk Management And An Enjoyable Farm VisitFarmers are often very aware of the potentially hazardous areas of their
farm. However, visitors, especially those with little or no farm background,
may not recognize those hazards. Visitors come to the farm to have a fun
and/or educational experience and will often not be expecting too many
rules or restrictions on their activities. The difficult task for agritourism
operators is to provide farm visitors with an enjoyable farm experience,
while protecting them from dangerous situations at the same time. Who Is At Risk?VisitorsFarm visitors include people of all ages and physical abilities. They may be in wheelchairs, in strollers or wagons. There may be seniors groups or groups of pre-schoolers. Young children may or may not be adequately supervised by parents or other caregivers. Some visitors may not speak or read English fluently. EmployeesIn addition to visitors, there are usually hired employees on the premises. These may be full-time farm or sales staff, plus seasonal employees. The training and needs of all employees are also important considerations in your farm's risk management plan.
Identifying Risk Areas Of The BusinessThe best way to start a risk management plan is to first identify all the risk areas of the farm. Take a walk around the property and write down the various aspects of the business. These can be listed according to such categories as physical features (buildings, play areas and structures, roadways, trails, paths), equipment (tractors, forklifts, wagons, trucks), general sanitation, animals, food and food service areas. Next, try to identify potential hazards or dangers that exist in each area. Walk around the property as a visitor would; look at the property as a young child would. Have a colleague, a non-farm friend and your insurance agent tour the premises to identify risk areas that you might have missed. Draw a mapTake some time to physically map out the farm and all the business components. This is a great tool for identifying the location of problem areas. The map will be useful later when we discuss emergency plans for the farm. It will also be helpful for training staff to manage risk. Mark the location of such things as fire extinguishers and other emergency equipment, as well as phones, gas, water, fuel tanks and access routes. | Top of Page | Kinds of risksKeep in mind the various kinds of hazards that could occur on the farm, including fires, personal accident or health emergencies, acts of violence, storms, natural or man-made disasters, and spills of hazardous materials (fuels, pesticides, manure). It is recommended that you complete the Agricultural Safety Audit Manual, which will help you assess your on-farm safety risks. This Manual is available through the Farm Safety Association
Three Approaches To Risk ManagementThere are three approaches to risk management to be considered. All three are essential to the safe operation of an agritourism farm.
The most important step in risk management is making sure that accidents or incidents don't happen in the first place. While they can't be eliminated, there are a number of things that can be done to minimize hazards. These may include training staff, re-configuring public areas, adding safety features or increasing consumer awareness of specific hazards. Children love to jump, climb and tumble when they are playing. Farm operators
are reluctant to dampen children's enjoyment. But for your farm business's
protection, you must make safety your first priority. Below are several
partial lists, to get you thinking of ways you can reduce your risks from
the different activities you offer your customers on your farm. Playgrounds and play equipment
| Top of Page | Straw, hay or corn mazes
Buildings where the public has accessCommon activities within such buildings include food service, bakeries, haunted houses or barns, retail shops, wine-tasting rooms or group function rooms, such as birthday party rooms.
AnimalsWhen farm animals are part of the on-farm activity, establish physical barriers to restrict visitor accessibility to the animals. Animals can be unpredictable around large crowds and prying fingers. There is also a risk of E. coli contamination from some animals. This can be very serious, particularly with seniors and young children. It is often safer to have two fences, one about 1 metre outside the other so that visitors cannot actually touch the animals.
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Ponds and streamsFence or somehow restrict access to farm ponds and streams. Drowning is one of the leading causes of accidental death of children. Farm ponds and streams can be very attractive to children.
Water qualityIf your farm operation uses well water, ensure that your drinking water conforms to provincial safety standards. Your system is subject to the requirements of O. Reg. 170/03, Drinking Water Legislation in Ontario. Don't assume that people will purchase bottled water even if it is sold at the farm. Contact the Ministry of Environment and/or your local health unit to ensure your drinking water is safe. Food safetyFood service has many specific hazards. In any food service operation, it's imperative to start with information from the local public health units and to take their course on safe food preparation and handling. The health unit will give specific information on such things as the proper refrigeration of perishable foods, ways to prevent bacterial cross-contamination of uncooked and cooked foods, proper cooking and handling techniques for various food products, and general sanitation protocols.
AlcoholSome agritourism enterprises have alcohol service available. There may be wine-tasting bars, licensed restaurants or special-occasion alcohol permits for functions such as weddings on the property. There are a number of regulations involved in serving alcohol on the premises.
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Motorized or moving farm equipmentA number of moving vehicles are found on agritourism farms. These may include tractors, train rides, wagon rides and tour vehicles. In addition, there may also be a number of farm vehicles such as tractors, sprayers, harvesters, gutter cleaners and silo fillers that are part of the production side of the farm enterprise.
Parking lots and roadways
SignsHaving an agritourism business with well-placed on-site signs and notices can go a long way towards informing visitors of potential risks.
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Excluding visitors from potentially hazardous areasThe use of fencing, locked buildings and other types of barriers to keep visitors out of hazardous areas can be useful tools in decreasing accidents on the farm. Warning signs are often not enough; people either don't or can't always read them.
Maintenance
StaffProbably the most important component of risk management in agritourism enterprises involves training and retraining staff to increase their awareness and vigilance. This will greatly reduce risk situations.
Employees are also important keys in reducing risks on the premises:
Staff must also feel comfortable that there is adequate protection to minimize any risks to themselves. Employees should get WHMIS training, thorough instruction in the use of equipment and training in the use of all safety equipment. The employees should also know the proper procedures to follow according to the Workplace Safety and Insurance Board in case they are injured at work. It is also incumbent on the owner/employer to ensure that proper legislated human resource laws, such as the Occupational Health and Safety Act on Farming Operations, are adhered to. | Top of Page | General suggestions for reducing risks
Special activity waiverIn some circumstances, it may be advisable to create a waiver form for certain riskier activities, such as horseback riding.
While it is important to take steps to reduce risk on the farm as much as possible, it is also important to realize that accidents or other crises can occur. Being prepared for these emergencies can minimize problems, errors or complications. Crisis management and emergency plansIn emergencies, people often have difficulty making rational decisions. If emergency and contingency plans are well thought-out, written-out and rehearsed in advance, panic during crisis situations can be minimized. A crisis plan should include the following:
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Incident reportThe sample incident report, below, outlines the basic information that should be included.
Procedures for lost or abducted childrenDevelop a special emergency plan to deal with the report of a lost child or a suspected abduction of a child. First, establish procedures to immediately close off exits and entrances (a tractor, chain or large vehicle can be placed across the exits) and do not allow any visitors to leave the premises. Contact police and allow them to take the lead in the investigation once they arrive. Mock emergency drillAs part of staff orientation, go through a mock emergency drill with employees so that they have confidence in the procedures. Also, by going through a practice drill, you will see which modifications to the emergency plans are necessary. | Top of Page | Emergency equipmentAll farms should be equipped with a basic first aid kit, and employees should be trained in how to use it. More than one kit may be necessary, depending on the size of the operation. Keep first aid kits in specific, easily accessed locations, and ensure that all employees know where they are located. Locate fire extinguishers in areas with a high risk of fire (e.g., around stoves, deep fryers, woodstoves, fireplaces), according to fire department instructions. Ensure that all employees know where these extinguishers are located and how to operate them properly. Creating an overall farm checklistOne way to incorporate many of the aspects of risk management on the farm is to create an overall farm checklist. This list should separate out each of the physical areas of the business, the frequency of inspections, who will be doing the checking, who should be doing the follow-up procedures for actions required and what they did to reduce the risk. Review this checklist regularly to help you and farm staff keep hazards to a minimum. On the next page are examples of farm checklists. Create separate checklists for those things that should be checked daily, weekly, monthly and seasonally. Another approach would be to make separate checklists for each work area. Establish protocols for signing off on these checklists and making sure
any actions required are completed on a timely basis. Daily ChecklistDate__________
Weekly ChecklistDate__________
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Even though you may be doing all you can to minimize hazards on your farm, if an emergency or accident occurs on the farm premises, there may be considerable costs to the owners and to the business. Such things as spills clean-up, medical bills, legal fees or rebuilding costs can be very expensive to the farm operator. It is important to have sufficient and proper insurance to cover all aspects of your farm premises. Remember, insurance is purchased to protect the farm operator. The greater the risks in the business, plus the more activities and services you offer, the more protection will be required. Insurance needs will vary greatly from one operation to another. Three main types of insuranceThere are three types of insurance to consider for an agritourism farm enterprise: 1. general farm insurance, 2. farm market commercial insurance, and 3. farm and commercial liability insurance. Consider the requirements for all three types of insurance depending on the type of agribusiness you operate.
This insurance covers anything involved in normal farm operations on the premises, including such areas as:
This insurance covers most areas involved in the commercial aspects of
the agritourism enterprise.
In addition to general farm and commercial insurance, it is important to also have sufficient liability insurance coverage for the agritourism enterprise. Liability insurance protects you and your business in case anyone has an accident or injury on the farm premises. In agritourism businesses, both farm and commercial liability insurance are required. Farm liability insurance will insure anything that occurs as part of normal farm practices. This includes the pick-your-own areas where individual crops must be specified in the policy. You will also want coverage to pay for spills clean-up (pollution liability) and for non-owned vehicle liability. Commercial liability insurance is designed to cover all activities that occur in the commercial aspects of the agritourism operation, including retail sales and entertainment activities. It is required to provide coverage for such areas and activities as festivals, weddings, playgrounds, wagon rides, tours, markets, food sales and nature walks. Be sure that your liability insurance is inclusive enough to cover any accident or injury that occurs to you and your family, your employees and visitors to the farm. An important principle for farm marketers to realize is if it is not listed in the policy, you are not insured, therefore full disclosure is very important in establishing levels of insurance coverage. Ensure that special areas, individual events and agritourism activities are listed separately so they will be fully covered by the insurance policy. Most importantly, arrange to have an insurance agent walk through all aspects of the agritourism operation with you to develop a policy that is both adequate and inclusive in coverage for your particular business operation. The insurance company may ask for the farm's income and expense statement in order to fully appreciate the degree of exposure it is undertaking. | Top of Page | Some special cases to notePony rides Licensed functions
SummaryThis Factsheet has been written to build awareness of the potential risks
of having the public visit your farm or agritourism property. In addition
to providing a few potential examples of risk, the Factsheet includes
suggestions to help you develop contingency procedures in case something
does happen. It is most important that all farm staff know what to do
in an emergency so that the incident is handled expeditiously and properly. This publication is intended as general information and not as specific advice concerning individual situations. Although it outlines some of the legal and insurance considerations of operating an agritourism enterprise, it should not be considered a legal document. The Government of Ontario assumes no responsibility towards persons using it as such. Related Web Sites Association of Municipalities of Ontario
Canadian Farm Business Management
Council Canadian Standards Association Municipal Property Assessment Corporation Ontario Farm Fresh Marketing
Association (OFFMA) Ontario Ministry of Agriculture,
Food and Rural Affairs (OMAFRA) Ontario Ministry of Environment (Water
Regulations) Ontario Ministry of Health and
Long Term Care - provides link to Local Health Units ReferencesAumell, Bob. Managing Farm Business Risk. 2004. Fitzgerald, Paul. Risk Management Guide for Tourism Operators. 2003.
Hamilton, Neil. The Legal Guide for Direct Farm Marketing. 1999. Prim, R., and K. Foede. In the Eyes of the Law. 2002. Winslade, R.S. | Top of Page | For more information:Toll Free: 1-877-424-1300 Local: (519) 826-4047 E-mail: ag.info.omafra@ontario.ca |
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