Liability and Insurance Projection for farmers who have income-Producing recreation facilities. Preface: As a source of side income, some farmers near cities are providing recreational facilities for the use of fee-paying guests. Additional liability is involved. The ordinary personal liability or farmowner policy does not cover these income-producing recreational facilities. It covers only the basic farm operation. A farmer needs additional insurance on the side activities. This report discusses the liability involved in operation such recreational facilities and the type of insurance needed to provide financial protection against lawsuits arising from their use by fee-paying guests.