Aging farmers worry about what will happen to their family farms once they’re gone. Some of those farmers are specifically worried about what the future holds for their farm if they are to need long term care.
Many farmers wish to pay their own way. They do not want to put a heavy financial burden on their family nor do they want to sell land to pay for long term care. However, many know from providing care to their elderly loved ones that this is a potential reality.
An article by Wisconsin Public Radio (WPR), illustrates the fear some farmers have about losing their farm in order to pay for nursing home expenses. Here are ways farmers are planning for a long term care event presented in this article:
- About 200 retirement transition plans have been developed for farmers by the Wisconsin Farm Center over the past few years due to the rising concern of how to pay for long term care.
- Some farmers are spending down assets in order to qualify for Medicaid. Medicaid is not always a “cure-all” solution, and in order to even qualify for Medicaid, one has to spend down their assets to $2,000.
- The other option farmers are turning to is investing in life insurance or long term care insurance.
Without coverage or a plan, the monthly expenses for a nursing home are equivalent to one or more acres of farm land. Here is a helpful tool to calculate long term care costs per acre: Cost per Acre Calculator.
Long term care insurance policies can help cover expensive costs of long term care no matter what form it comes in: Nursing homes, assisted living facilities or home healthcare. For farmers, investing in long term care could mean keeping their family farms for generations to come.