Country Financial is suing the American Farm Bureau Federation, the latest move in a series of escalating legal trouble tied to the insurer's decision to drop its requirement that some policyholders be farm bureau members.
In legal documents obtained by WGLT, Bloomington-based Country Mutual Insurance Company [CMIC, the legal name of Country Financial] alleges the American Farm Bureau Federation [AFBF] has "openly engaged in an unlawful conspiracy to violate Illinois law through anticompetitive conduct, contractual breaches, intentionally tortious conduct and unfair and deceptive trade practices."
Country alleges the result of the conduct is "significant financial harm" to both Country and its customers, "and to insurance customers generally in Illinois and nationwide."
The lawsuit names nine current and former leaders within the AFBF. The allegations laid out include:
- AFBF's breach of contract related to an agreement made between the two entities in 1990 which stated "AFBF shall not limit any activities of IAA’s [Illinois Agricultural Association, the legal name for the Illinois Farm Bureau] affiliates that are not conducted under the Farm Bureau [trade] marks."
- Unlawful conspiracy to injure the business of another
- Unlawful interference with prospective business relations and expectancies
- Violations of the Illinois Uniform Deceptive Trade Practices Act
- Ill. common-law commercial disparagement
The AFBF is a nonprofit umbrella organization comprised of 50 member state farm bureaus plus Puerto Rico. The Illinois Farm Bureau founded Country Financial in 1925 and the two companies remain affiliated.
At the root of the current disagreement is a 2024 business decision made by Country. Previously, Country required membership with the Illinois Farm Bureau for all property/casualty insurance policy holders in the state of Illinois. This effectively meant that anyone buying an auto or home insurance policy through Country was required to join the Farm Bureau and pay a membership fee in addition to their insurance premium.
Country decided that in the interest of long-term customer growth, they would discontinue this practice.
"CMIC today serves a broad, diverse client base spanning more than one million policyholders across 19 states, a substantial portion of which are outside the agricultural sector," according to the complaint.
This decision introduced significant tension between the company and the Farm Bureau, the lawsuit states. A series of leadership changes on the board followed. Current president Philip Nelson defeated former president Brian Duncan in an election in December 2025 and Duncan initially refused to resign his seat. Nelson cited his victory over Duncan as being directly related to the changes Country made to the Farm Bureau membership requirement.
In a statement issued Tuesday, Nelson expressed support for Country as the legal case plays out.
“Country Financial is critical to IFB and our county Farm Bureaus' success. IFB stands behind our insurance affiliate,” Nelson said.
Regarding the civil complaint, former Illinois Farm Bureau president Brian Duncan told WGLT "I hope people read it. I think it speaks for itself."
The conflict ultimately contributed to the retirement of Jim Jacobs, former CEO, this summer. Country has not yet named a new CEO.
Country is seeking a jury trial and financial damages. An administrative hearing is scheduled for Dec. 3. The case has been assigned to newly appointed Chief Judge Mark Fellheimer.
Country has also requested to consolidate this new lawsuit with a prior lawsuit the Illinois Agricultural Association filed in 2024 against the American Farm Bureau Federation.
WGLT has reached out to the AFBF and Country Financial for comment.
This story will be updated.
