The Irish Farmers' Association says the current nursing home support scheme is challenging the viability of farms.
It's welcoming changes to the Fair Deal scheme, which will reduce financial contributions for farmers and small business owners.
As it stands, they're required to set aside 7.5% of the value of their land annually to fund a place in a nursing home.
But new legislation, signed off by Cabinet, will cap contributions at three years.
President of the IFA, Tim Cullinan, says it's a very emotive issue for farm families.
"That has a serious impact on farm families, because it's eroding the value of the farm.
"But it is signed off that it's only the first three years that this levy 7.5% would be levied on farms.
"After that then if the person has to give a long number of years in a nursing home, as least it's no threat to the farm or the farm family."
