Final answer:
Farmer Scott should secure Environmental Liability Insurance to protect against liabilities from environmental damage such as the runoff of goat waste into a nearby river.
Step-by-step explanation:
Farmer Scott can protect himself from any liability caused by goat waste runoff with Environmental Liability Insurance. This type of insurance is specifically designed to cover claims related to environmental damage, such as pollution due to agricultural runoffs. Crop Insurance, Livestock Insurance, and Farm Equipment Insurance do not cover environmental liabilities or pollution-related issues. Environmental Liability Insurance is vital for farmers because it helps in managing risks associated with potential point sources of pollution, such as untreated animal waste entering water bodies after heavy rains, similar to what can happen on large animal farms known as concentrated feeding operations (CFOs).
Agricultural practices can lead to various ecological concerns, including soil productivity decline, desertification, contamination from nitrates and pesticides, and water quality issues that affect drinking water and fishery production. The runoff from farms, including fertilizers and animal waste, is considered a non-point source water pollutant, making Environmental Liability Insurance crucial for farmers to mitigate risks and ensure they are covered against potential claims or legal responsibilities arising from such events.