Written by Robert Moore

I recently received this question from a farm family. It’s one of the most common — and important — questions farm families ask when thinking about the future. Long-term care (LTC) is expensive, unpredictable, and often not covered by programs like Medicare. For farmers who’ve spent a lifetime building an operation and want to pass it on, the rising costs of LTC present a real financial risk to the land, the farm business, and the legacy. The following is a brief discussion on LTC costs and strategies.

The Growing Risk of Long-Term Care

Once upon a time, estate taxes were the biggest financial threat to the family farm. Today, that’s no longer the case. With higher federal estate tax exemptions, few farms owe estate taxes anymore. The real financial threat now? LTC costs.

LTC includes a wide range of services — from home-based personal care to skilled nursing facility stays — and most of it isn’t covered by Medicare. These services help people with chronic illness, disability, or aging-related conditions. For example, assistance with dressing, bathing, eating, or even just getting around. Care might start at home and eventually move to a facility. Costs vary by setting and service, but they add up quickly.

Here are a few important facts to help understand the implications of LTC on farming operations:

• 69% of people over 65 will need some form of LTC.
• Average LTC lasts 3 about years, with women needing slightly more (3.7 years) than men (2.2 years).
• 20% of people will need care for more than 5 years — these are the “outliers” most likely to face LTC costs that can jeopardize the farm.
• In Ohio, a year in a nursing home will cost around $100,000 or more.
• For a farm couple, those numbers can double — and the risk of outliving income and savings increases.

Continue reading How Do We Pay for Long-Term Care Without Losing the Farm? →