Prairie Star Farm in Allamakee County, Iowa, hosts 180 dairy cows. Owners Meghan and John Palmer point to rising medical expenses as a growing burden on farmers, including themselves.
It’s been a challenging year for many farmers. There have been falling prices for cash crops like corn and soybeans, along with increased costs for essentials like fertilizer and seeds. The wider agricultural sector faces difficulties this year, magnified by tariffs and other economic pressures, potentially diminishing profitability.
Moreover, crucial subsidies that provide health insurance support to many, including farmers, are scheduled to expire soon.
James Davis, a cotton, soybean, and corn farmer in northern Louisiana, expressed deep concern about affording insurance next year, with premiums set to skyrocket to approximately $2,700 monthly. He stated plainly, “We can’t afford it. There’s nothing more to say.”
Research suggests that over a quarter of agricultural workers rely on the individual market for health insurance, which is significantly higher than the national average.
This rate being at 27% highlights the struggle when only about 6% of U.S. adults participate in non-group coverage.
Farmers typically face a host of challenges, from unpredictable weather to fluctuating market prices. Losing enhanced subsidies amid harsh economic conditions would render health premiums unmanageable for many.
Without significant action from the government, farmers fear they may have to choose between going uninsured or leaving the agricultural industry for jobs with health coverage.
The risks of forgoing insurance for farmers
Farming is inherently hazardous. Farmers often work outdoors, facing harsh elements. The risk of injury looms large, whether it’s from heavy machinery, toxic substances, or large animals.
Statistics show that workplace fatalities for farmers are disproportionately higher than average.
A close-up of cotton on a farm in Richland Parish, Louisiana.
Drew Hawkins
Injuries on farms come with significant costs, averaging thousands in medical bills and lost work. Access to comprehensive insurance is critical for farmers, as pointed out by agricultural health expert Florence Becott.
Surveys reveal that many farmers find themselves in significant medical debt, and many lack confidence in their ability to cover healthcare expenses related to major illnesses.
“This illustrates the vulnerability farmers face,” she noted.
Mental health also demands attention, with farmers facing higher suicide rates compared to the general population. Calls to mental health resources are on the rise in rural areas.
The current agricultural climate may echo past crises, with increasing distress and bankruptcies reminiscent of the downturn in the 1980s when many farmers struggled deeply, with tragic outcomes.
“We’re really worried about the future,” said Klein from the American Rice industry association.
Megan Palmer, who manages a dairy farm in Iowa, shared that some farmers may hesitate to acknowledge their reliance on government support. She expressed the ongoing struggles: “We’re not the ones taking handouts.” Still, over 40% of dairy farmers lack insurance.
Going without coverage is simply not an option for the Palmers. They recall their early marriage, facing severe health emergencies without insurance, which left them financially strained.
“We were foolish,” Palmer reflected about their earlier decision.
This coming year, however, their insurance costs will increase dramatically, and the looming deductible is also a concern.
Palmer has began searching for external employment, but she’s apprehensive that much of that income will be consumed by rising insurance costs, and the extra burden of managing the farm will fall more heavily on her.
Even though the Palmers anticipate qualifying for tax credits for insurance, they face potential repayment requirements if their financial situation improves, which is a significant concern given the fluctuating nature of farming income.
Tractor in Richland Parish, Louisiana.
Drew Hawkins
Concerns extend to others obtaining insurance through social programs as well, with the potential for decreased business growth adversely affecting farm viability.
Both Davis and Palmer voiced their frustrations about lawmakers’ understanding of the dual struggles in agriculture: economic hardships coupled with rising healthcare costs.
While promises of financial assistance from government officials have been made, critics argue that these measures will not adequately address the inflation of medical expenses.
Political analysts note that, while there’s recognition of health issues among lawmakers, substantial public support for expanding subsidies is lacking, as many do not view it as a long-term solution to rising costs.
