Illinois Farm Bureau has filed a lawsuit against the American Farm Bureau Federation, following AFBF’s decision to expel IFB from membership.

In September, IFB decided to allow its affiliate Country Financial to eliminate Farm Bureau membership requirements for nonfarm insurance policyholders. That decision led to an escalating conflict with AFBF, a failed mediation on Nov. 11 and expulsion from the organization on Nov. 12. 

The suit, filed in McLean County Circuit Court on Nov. 13, asks that AFBF reverse the expulsion and pay for possible monetary damages.

In a public statement Nov. 13, IFB President Brian Duncan said, “We have no desire to leave AFBF, and we will fight to stay. We made good-faith efforts to mediate on Monday [Nov. 11], and AFBF walked away from the table. I want to reassure you we are committed to defending the rights of IFB, our county Farm Bureaus and our farmer-members throughout the state. Today, we filed a lawsuit in McLean County Circuit Court to hold AFBF accountable and protect our members.”

Failed mediation

Following the Nov. 11 mediation, the only thing both parties appear to agree on is that mediation was a failure. AFBF Zippy Duvall addressed that breakdown in mediation during an interview with Farm Progress on Nov. 13.

Related:AFBF votes to expel Illinois Farm Bureau

“We just couldn't find any common ground on how we move forward to make sure that farmers stayed in control and support the membership piece,” he said.

Duvall added that he wants Illinois farmers to know the issue is about farmer control.

“Our organization was started 105 years ago to represent agriculture and farmers with one united voice, and we’re going to continue to try to do that as we move forward. But our local county Farm Bureau members need to understand that they are the power and strength of this organization. And whatever they want this organization to do, and what direction they want it to go in and how we go, it is their choice,” Duvall said.

“Just like the American people go to a voting box, they will go to a voting box, and they need to pay attention to what’s happening and make sure that their wishes and thoughts are delivered through the process that this organization provides,” he added.

Duncan disagrees with that characterization.

“We believe AFBF is choosing to abandon our more than 70,000 Illinois farmer-members because our affiliate insurance company does not want to force non-farmers to join,” he shared in his statement. “We believe AFBF is choosing to put our farms, our families and our communities at risk at a time when we need support through federal policy. In short, we believe AFBF has chosen to break its promises to Illinois farmers.”

Related:Will Illinois Farm Bureau be kicked out of AFBF?

According to Duncan, AFBF’s actions don’t align with their words. His statement took aim directly at AFBF’s membership credibility.

“AFBF touts its representation of American farmers and ranchers. Yet, it sources much of its stature and perceived power from people who are not farmers but insurance customers. When membership for these individuals in Illinois becomes voluntary, AFBF’s response is to abandon the very people it claims to represent: farmers,” he wrote.

Details of lawsuit

In addition to asking that the membership termination be reversed, IFB’s lawsuit alleges that IFB should retain use of the Farm Bureau name. IFB also claims that AFBF violated the terms of a 1990 settlement agreement between the two organizations, and it claims that AFBF defamed IFB by sending contentious emails.

The suit lays out the impact of membership termination: “If termination of Illinois Farm Bureau’s membership in AFBF goes into effect on Dec. 20, 2024, it will have a devastating impact on Illinois Farm Bureau, which has continuously operated as a ‘Farm Bureau’ for over 100 years. Such harm cannot be resolved by money damages or other future remedy.”

The organization claims it has invested “millions of dollars” in the IFB brand, which is recognized by the public, and it would be “extremely detrimental” to IFB’s goodwill and reputation if the organization was unable to use it.

What’s next

Duncan has invited all county Farm Bureau presidents and managers for a meeting at 1 p.m. Nov. 14  at the IFB headquarters in Bloomington, Ill., where he is expected to make the case for the IFB and Country Financial decision, and presumably respond to AFBF’s decision to expel IFB.

Following that meeting, all county presidents, managers and county leaders are invited across town to a meeting at the Agri-Center where Duvall will explain AFBF’s position and will take questions from the group. That meeting is being coordinated by an anonymous group of downstate county leaders.

Both meetings were organized last week, prior to this week’s mediation, expulsion and lawsuit.

Pam Caraway, editor of Farm Futures, contributed to this report.