Estate Tax Breaks Give Farmers Hope, but Long Term Care Costs Could Still Force Land Sales

A new federal tax package known as the One Big Beautiful Bill raises the federal estate‑tax exemption and makes it permanent—good news for farmers. However, experts warn that long-term care costs remain a critical challenge for many family farmers.

Just days after passing the U.S. House, President Donald Trump signed the One Big Beautiful Bill into law on July 4, 2025, enacting historic estate‑tax relief for American farmers and ranchers.

In a Fourth of July speech in Des Moines, Iowa, President Trump told supporters about how family farmers will benefit from the legislation.

Today, we make sure America’s family farms stay American. Your children and grandchildren will inherit your hard work — not an unfair tax bill. - President Donald Trump.

The new law raises the federal estate‑tax exemption to $28 million per person through 2035, ensuring most farms and ranches avoid being sold to pay estate taxes. It also maintains the 40% top tax rate for estates above that threshold.

This is about giving family‑owned farms and ranches the peace of mind to pass their legacy to the next generation. — Rep. Jodey Arrington (R‑Texas).

Modernizing farm safety net programs and providing a fair tax code is critical to the success of America’s farmers and ranchers, especially in today’s strained farm economy. — Zippy Duvall, President, American Farm Bureau Federation.

But Rising Long‑Term Care Costs Threaten Farm Assets

Despite new tax relief, long-term care costs continue to drain farm assets. Farmers often struggle to cover the high cost of extended care services. Like many Americans, farmers are aging and will eventually need help with daily living activities or supervision due to memory loss.

The cost of long-term care services is very expensive and not covered by Medicare. Those with Long-Term Care Insurance can have a lifeline.

Long‑Term Care Insurance can be the difference between preserving a farm for the next generation or watching it slip away to pay for nursing home bills.

Personal Toll: Farmers Under Pressure

NPR’s Juliana Kim interviewed the Haakensons, North Dakota farmers. NPR reports that farmers are “land‑rich, cash‑poor,” and often face selling land or equipment to pay for extended care. Sherwood Haakenson, a lifelong farmer from Willow City, North Dakota, is facing the same challenge confronting many rural families: how to afford long-term care without losing the family farm.

Haakenson, whose great-great-grandfather homesteaded the land in 1890, recently moved to a care center in a neighboring city, NPR reported. He required 24-hour supervision for heart and kidney issues, receiving attentive care and companionship from the staff during his stay away from home.

Meanwhile, his wife, Cindie, remained on the farm, grappling with the emotional and financial stress of paying for Sherwood’s extended care. The couple’s experience highlights the increasing burden of long-term care costs on older Americans, particularly family farmers who often lack sufficient cash flow to cover these expenses without risking the land that has been in their families for generations.

We got farmland that we own. We could sell, but, you know, it's like giving away part of your legacy. — Cindie Haakenson.

In North Dakota, for example, the LTC News survey of long-term care costs shows:

• Home health aide: ~$78,123/year
• Nursing home private room: ~$165,058/year

Long-term care costs vary depending on where you live and the level of services required. The cost of care is expected to increase in the years and decades ahead.

What This Means for You

Now, with the reduction of federal estate tax burdens, farmers and ranchers still need to protect their land, their most valuable asset.

Experts suggest asking yourself:

• How will you pay for years of home, assisted living, or nursing care?
• Could LTC insurance preserve your farm or ranch to keep the land in your family?
• Will your estate plan survive if long-term care costs escalate and there is no LTC Insurance policy in place?

Bottom Line

The One Big Beautiful Bill protects your farm from estate taxes—for now. But rising long-term care costs remain a clear and present danger. Pairing tax relief with proactive care planning is the only way to keep your farm in the family.

There are several types of Long-Term Care Insurance policies, including those with unlimited long-term care benefits — meaning you could never exhaust the benefits from the policy, no matter how long you need extended care.

Seek assistance from a qualified Long-Term Care Insurance specialist who represents all the top-rated insurance companies offering long-term care solutions. Be sure you only consider an LTC policy that meets federal guidelines to take advantage of tax advantages, regulated benefit triggers, and consumer protections.

A certified Long-Term Care Insurance specialist usually has a combination of the following background and credentials:

• Licensing: They hold a valid state insurance license, which is required to sell health and Long-Term Care Insurance products. In many states, selling LTC Insurance also requires completing specialized continuing education.
• CLTC Designation: Many leading specialists earn the Certified in Long-Term Care (CLTC) professional designation. This widely respected program provides in-depth training in the complexities of long-term care planning, tax considerations, care options, insurance products, and state partnership programs.
• Dave Ramsey and AALTCI: Some LTC Insurance specialists also have trusted status with Dave Ramsey and the American Association for Long-Term Care Insurance.  
• Extensive LTC Experience: Specialists typically focus exclusively or primarily on LTC Insurance, often working in the field for years or decades, rather than selling a broad range of unrelated insurance products, and helping hundreds, even thousands of people.
• Carrier and Underwriting Expertise: A true specialist understands how different insurance companies underwrite LTC policies, knowing which health conditions or medications could lead to approval, postponement, or denial. This knowledge helps clients avoid wasting time and ensures the best chance of getting coverage.
• Tax and Business Planning Familiarity: They know how individuals and business owners can use LTC Insurance for tax advantages.

Be sure you act sooner rather than later. Most people acquire an LTC policy between the ages of 47 and 67. Get accurate Long-Term Care Insurance quotes from the top-rated insurance companies offering long-term care solutions.

The Big Beautiful Bill reduces estate taxes, helping you keep your farm in the family. However, Long-Term Care Insurance adds a crucial layer of protection by covering the actual costs of aging and chronic illnesses. Together, these strategies give family farmers a stronger chance to preserve their land and avoid the heartbreak of selling property to pay for care.