Last year was a tough one for farmers. With prices for major crops like corn and soybeans dropping and costs for essentials such as fertilizer and seeds on the rise, things have been challenging. Many farms ended up not making a profit.
Now, the enhanced subsidies from the Affordable Care Act, which a lot of Americans—including farmers—had been counting on to afford health insurance, are no longer available. They expired at the end of December.
James Davis, a 55-year-old farmer in north Louisiana growing cotton, soybeans, and corn, is left wondering how he and his wife will manage to pay their insurance premiums, which have skyrocketed to around $2,700 a month.
“We just can’t manage that,” Davis stated plainly. “Without subsidies, it’s simply unaffordable.”
Interestingly, over a quarter of those working in agriculture get their health insurance through the individual market. This percentage is much higher compared to the general population, where only about 6% rely on nongroup coverage.
Farmers typically deal with unpredictable weather and changing commodity prices, but losing these subsidies on top of unfavorable economic conditions is making insurance premiums unmanageable for many. Many farmers worry that without major help from the government, they might have to choose between going uninsured or leaving farming altogether to pursue jobs that offer health benefits.
Farming Risks
Farming isn’t just about growing crops; it’s inherently risky. Farmers spend a lot of time outside and face exposure to various hazards that can lead to injuries or health issues. The risk of mortality among farmers is notably higher, being seven times the national average.
The financial toll from nonfatal injuries is significant as well. A study showed that the average cost related to a farm injury can easily top $10,000 in medical expenses alone, not counting lost work time.
According to Florence Becott, a rural sociologist studying agricultural health at Penn State, it’s crucial for farmers to have good insurance. In a recent survey, she found that more than 20% of U.S. farmers carry over $1,000 in medical debt, and many doubt they could afford a major health crisis.
“This highlights how vulnerable farmers really are,” she said.
Mental health issues are also pressing. Farmers are, unfortunately, at a higher risk for suicide than the general populace, and calls to mental health resources in rural areas have noticeably increased.
The psychological strain combined with rising bankruptcies in farming brings to mind earlier agricultural crises, particularly the troubling situation in the 1980s that led to numerous foreclosures and tragic outcomes.
“There’s a deep anxiety about the future,” shared Michael Klein, vice chairman of the American Rice Industry Association.
Megan Palmer, who runs a dairy farm in Iowa with her husband, shares in this concern. She remarks that farmers often hesitate to acknowledge their dependence on government-supported insurance. There’s an overwhelming sentiment of pride involved.
Over 40% of dairy farmers lack health insurance, one of the highest rates across agricultural sectors, which makes the decision not to go uninsured harder for many, including the Palmers. Reflecting on their experience, they remember the challenges of paying out-of-pocket for unexpected health issues, including an appendectomy for Megan and stitches for John after an incident with a cow.
This year, their insurance costs have spiked by over 90%, leading to a monthly premium of $368 with a steep deductible of $7,200, which is quite burdensome.
Megan is also a registered nurse and is actively seeking a job that offers health benefits. Yet, she’s concerned that taking on a new role might prevent her from farming, adding even more strain on her husband.
Political Challenges
Even with the enhanced subsidies phased out by the end of 2025, the Palmers believe they will still qualify for tax credits to help with coverage. However, proposed changes under the “One Big Beautiful Bill Act” mean that if their income rises unexpectedly, they could end up repaying some of their subsidy when tax season arrives.
Farmer incomes can fluctuate widely, so this uncertainty is troubling. Some farmers might even consider limiting their business growth to maintain eligibility for health care aid, which could, paradoxically, hurt their overall success.
Both Mr. Palmer and Mr. Davis feel frustrated that lawmakers seem disconnected from the economic realities of agriculture, especially in light of impending healthcare cost increases. Even President Trump’s promise of bridge payments won’t effectively address the ongoing rise in medical expenses.
Republicans acknowledge the need to improve healthcare affordability and propose various solutions, but many seem hesitant to support an expansion of ACA subsidies, believing they’re not the right answer to solving the overall healthcare cost crisis.
