Providing farmworkers with health insurance is worth it for their employers - new research - Insurance News | InsuranceNewsNet

InsuranceNewsNet — Your Industry. One Source.™

Sign in
  • Subscribe
  • About
  • Advertise
  • Contact
Home Now reading Newswires
Topics
    • Advisor News
    • Annuity Index
    • Annuity News
    • Companies
    • Earnings
    • Fiduciary
    • From the Field: Expert Insights
    • Health/Employee Benefits
    • Insurance & Financial Fraud
    • INN Magazine
    • Insiders Only
    • Life Insurance News
    • Newswires
    • Property and Casualty
    • Regulation News
    • Sponsored Articles
    • Washington Wire
    • Videos
    • ———
    • About
    • Meet our Editorial Staff
    • Advertise
    • Contact
    • Newsletters
  • Exclusives
  • NewsWires
  • Magazine
  • Newsletters
Sign in or register to be an INNsider.
  • AdvisorNews
  • Annuity News
  • Companies
  • Earnings
  • Fiduciary
  • Health/Employee Benefits
  • Insurance & Financial Fraud
  • INN Exclusives
  • INN Magazine
  • Insurtech
  • Life Insurance News
  • Newswires
  • Property and Casualty
  • Regulation News
  • Sponsored Articles
  • Video
  • Washington Wire
  • Life Insurance
  • Annuities
  • Advisor
  • Health/Benefits
  • Property & Casualty
  • Insurtech
  • About
  • Advertise
  • Contact
  • Editorial Staff

Get Social

  • Facebook
  • X
  • LinkedIn
Health/Employee Benefits News
Newswires RSS Get our newsletter
Order Prints
April 8, 2025 Newswires
Share
Share
Post
Email

Providing farmworkers with health insurance is worth it for their employers – new research

Zachariah Rutledge, Assistant Professor of Agricultural, Food and Resource Economics, Michigan State UniversityThe Caledonian-Record

Farmworkers at Del Bosque Farms pick and pack melons on a mobile platform in Firebaugh, Calif., in July 2021. AP Photo/Terry Chea

Agricultural employers who provide farmworkers with health insurance earn higher profits, even after accounting for the cost of that coverage. In addition, farmworkers who get health insurance through their employers are more productive and earn more money than those who do not.

These are the key findings from our study published in the March 2025 issue of the American Journal of Agricultural Economics.

To conduct this research, we crunched over three decades of data from the Labor Department's National Agricultural Workers Survey. We focused on California, the nation's largest producer of fruits, nuts and other labor-intensive agricultural products in the U.S., from 1989 to 2022.

We determined that if 20% more farmworkers got health insurance coverage, they would have earned $23,063 a year in 2022, up from $22,482 if they did not. Their employers, meanwhile, would earn $7,303 in net profits per worker annually in this same scenario, versus $6,598.

Why it matters

Roughly half of California's agricultural employers are facing labor shortages at a time when the average age of U.S. farmworkers is also rising.

Some of them, including grape producers, are responding by investing more heavily in labor-saving equipment, which helps reduce the need for seasonal manual labor. However, automated harvesting isn't yet a viable or affordable option for labor-intensive specialty crops such as melons and strawberries.

Despite labor shortages, agricultural employers may be reluctant to increase total compensation for farmworkers. They may also be wary of providing additional benefits such as health insurance for two main reasons.

First, seasonal workers are, by definition, transient, meaning that the employer who provides coverage may not necessarily be the same one who benefits from a healthier worker. Second, it costs an employer money but doesn't necessarily benefit them in the future if the worker moves on.

Most U.S. farmworkers are immigrants from Mexico or Central America. Roughly 42% are immigrants who are in the U.S. without legal authorization, down from 55% in the early 2000s.

As the share of farmworkers who are unauthorized immigrants has declined, the share who are U.S. citizens – including those born here – has grown and now stands at about 39%.

The low wages farmworkers earn offer little incentive for more U.S. citizens and permanent residents to take these jobs. These jobs might become more attractive if employers offered health care coverage to protect the health of the worker and their household.

Farmworkers who lack legal authorization to be in the U.S. are not eligible for private health insurance policies, and many can't enroll in Medicaid, a government-run health insurance program that's primarily for low-income Americans and people with disabilities. Regardless, some employers do take steps to help them gain access to health care services. As of 2025, a large share of farmworkers remain uninsured, including many citizens and immigrants with legal status.

Limited access to health care is an unfortunate reality for farmworkers, whose jobs are physically demanding and dangerous. In addition, farmworkers are paid at or near the minimum wage and are constantly searching for their next employment opportunity. This uncertainty causes high levels of stress, which can contribute to chronic health issues such as hypertension.

What still isn't known

It is hard to estimate the effect of employer-provided health insurance on workers and employers, since labor market outcomes are a result of highly complex interactions.

For example, wages, productivity and how long someone keeps their job are highly interdependent variables determined by the interaction between what workers seek and what employers offer. And wages do not always reflect a worker's skills and abilities, as some people are more willing to accept a job with low pay if their compensation includes good benefits such as health insurance.

The Research Brief is a short take about interesting academic work.

The authors do not work for, consult, own shares in or receive funding from any company or organization that would benefit from this article, and have disclosed no relevant affiliations beyond their academic appointment.

Older

Hearing on State Farm’s 22% emergency rate hike request starts this week

Newer

Business Insurance Market (BIM) Offers Tailored General Liability Contractors Insurance for Small Businesses and Commercial Enterprises

Advisor News

  • House panel votes to raise certain taxes, transfer money to offset Medicaid shortfall
  • Iowa House backs temporary tax hike to fill Medicaid gap
  • Iowa Medicaid temporary tax plan draws sharp public opposition
  • Charitable giving planning can strengthen advisor/client relationships
  • New $6K deduction could provide tax planning window for retirees
More Advisor News

Annuity News

  • We can help find a loved one’s life insurance policy
  • 2025: A record-breaking year for annuity sales via banks and BDs
  • Lincoln Financial launches two new FIAs
  • Great-West Life & Annuity Insurance Company trademark request filed
  • The forces shaping life and annuities in 2026
More Annuity News

Health/Employee Benefits News

  • In U.S. Health Insurance Market, Consolidation Of Insurers Is Increasing Premiums
  • Health insurance jargon can be frustrating and confusing – here's how to navigate it
  • Minnesota Blue Cross CEO steps down from Sutter Health board over conflict of interest
  • 'No-cost" Lantern surgical benefit has modest early use from SHP members
  • House panel votes to raise certain taxes, transfer money to offset Medicaid shortfall
More Health/Employee Benefits News

Life Insurance News

  • Murray Giles Hulse
  • New individual life premium hits record-setting $17.5B in 2025
  • Maryland orders Cigna to halt underpaying doctors or give cause
  • Insurers optimistic about their investments in 2026
  • AM Best Affirms Credit Ratings of PVI Insurance Corporation
More Life Insurance News

- Presented By -

Top Read Stories

More Top Read Stories >

NEWS INSIDE

  • Companies
  • Earnings
  • Economic News
  • INN Magazine
  • Insurtech News
  • Newswires Feed
  • Regulation News
  • Washington Wire
  • Videos

FEATURED OFFERS

Elevate Your Practice with Pacific Life
Taking your business to the next level is easier when you have experienced support.

Your Cap. Your Term. Locked.
Oceanview CapLock™. One locked cap. No annual re-declarations. Clear expectations from day one.

Ready to make your client presentations more engaging?
EnsightTM marketing stories, available with select Allianz Life Insurance Company of North America FIAs.

Unlock the Future of Index-Linked Solutions
Join industry leaders shaping next-gen index strategies, distribution, and innovation.

Press Releases

  • LifeSecure Insurance Company Announces Retirement of Brian Vestergaard, Additions to Executive Leadership
  • RFP #T02226
  • YourMedPlan Appoints Kevin Mercier as Executive Vice President of Business Development
  • ICMG Golf Event Raises $43,000 for Charity During Annual Industry Gathering
  • RFP #T25521
More Press Releases > Add Your Press Release >

How to Write For InsuranceNewsNet

Find out how you can submit content for publishing on our website.
View Guidelines

Topics

  • Advisor News
  • Annuity Index
  • Annuity News
  • Companies
  • Earnings
  • Fiduciary
  • From the Field: Expert Insights
  • Health/Employee Benefits
  • Insurance & Financial Fraud
  • INN Magazine
  • Insiders Only
  • Life Insurance News
  • Newswires
  • Property and Casualty
  • Regulation News
  • Sponsored Articles
  • Washington Wire
  • Videos
  • ———
  • About
  • Meet our Editorial Staff
  • Advertise
  • Contact
  • Newsletters

Top Sections

  • AdvisorNews
  • Annuity News
  • Health/Employee Benefits News
  • InsuranceNewsNet Magazine
  • Life Insurance News
  • Property and Casualty News
  • Washington Wire

Our Company

  • About
  • Advertise
  • Contact
  • Meet our Editorial Staff
  • Magazine Subscription
  • Write for INN

Sign up for our FREE e-Newsletter!

Get breaking news, exclusive stories, and money- making insights straight into your inbox.

select Newsletter Options
Facebook Linkedin Twitter
© 2026 InsuranceNewsNet.com, Inc. All rights reserved.
  • Terms & Conditions
  • Privacy Policy
  • InsuranceNewsNet Magazine

Sign in with your Insider Pro Account

Not registered? Become an Insider Pro.
Insurance News | InsuranceNewsNet