Coffee-farming communities around the world are no strangers to adversity. From fluctuating market prices to the intensifying impacts of climate change, the path to sustainability has never been easy. However, two major global developments are now compounding these existing challenges: extreme volatility in the coffee market and the abrupt dismantling of USAID, the U.S. Agency for International Development. Together, these forces are poised to bring even greater instability to coffee-farming families and cooperatives, further threatening their livelihoods and food security.
The Reality of Coffee Price Volatility
At first glance, rising coffee prices might seem like a positive development for producers. But for smallholder coffee farmers, price volatility—whether prices rise or fall—often brings more harm than good. Most of the families Food 4 Farmers works with earn an average of just $2,000 USD annually from coffee production. Even if these farmers are fortunate enough to double their income during a price surge, this increase still falls far short of what is needed to sustain a family for a year.
The reasons for this are complex. As coffee prices rise, the cost of essential inputs like fertilizers and pesticides also spikes, as suppliers take advantage of the temporary boom. As Felix Camposeco of ACODIHUE, a Guatemalan coffee cooperative Food 4 Farmers partners with, notes, “The rise in coffee prices causes the price of inputs to rise as well, because suppliers know producers will have to pay the increase to have a good harvest next year.”
For cooperatives and producer associations, this volatility adds another layer of risk. These organizations rely on stable relationships with clients and access to credit. When coffee prices spike unexpectedly, some producers may break their contracts to pursue higher prices elsewhere. At the same time, elevated prices can strain small to mid-level roasters, causing them to reduce their coffee purchases. Such shifts can affect the financial stability of cooperatives and impact longstanding buyer relationships.
Such instability makes it harder for farmers to plan for the future, invest in food production, or diversify their income—all of which are essential to building resilience in these vulnerable communities. Despite the perception that higher coffee prices solve financial woes, the reality is that volatility introduces new risks that threaten both short-term and long-term stability.
The Dismantling of USAID
Compounding this market instability is the Trump administration’s sudden dismantling of USAID, an agency that has played a crucial role in supporting coffee-farming communities through agricultural research, market development, and food security initiatives. While there has been some critique of USAID’s practices and methodologies—and approaches that do not always fully align with those of Food 4 Farmers—the agency’s investments have undeniably contributed significantly to the coffee sector. Regardless of differing perspectives, the hasty and abrupt nature of this freeze will undoubtedly negatively impact coffee-farming communities.
Over the years, USAID investments have contributed tens of millions of dollars to projects aimed at strengthening coffee sectors in countries like Peru, Burundi, Indonesia, and Honduras. These projects have included everything from coffee academies and dry mills to environmental sustainability programs and climate resiliency initiatives.
With the dismantling of USAID, these projects now hang in the balance. The sudden withdrawal of funding and expertise leaves coffee-farming communities vulnerable, particularly at a time when private investment in the sector is scarce. The loss of USAID’s support threatens not only current initiatives but also the long-term development of sustainable, resilient coffee economies. This impact extends beyond individual projects—when one program loses funding, it can create a ripple effect, destabilizing interconnected efforts. For example, Maya Ixil, a coffee cooperative in Guatemala, recently lost USAID funding, putting their food security and climate resilience programs at risk. Without external support, initiatives like these struggle to sustain progress, leaving farmers with fewer resources to adapt to ongoing economic and environmental challenges.”
The Path Forward: Why Diversification and Partnership Matter More Than Ever
Amid these challenges, one thing is clear: coffee-farming families need more than temporary price surges or short-term market gains. They need stable, diversified sources of income that protect them from the volatility of global markets and the unpredictability of political decisions. Food 4 Farmers’ programs that help farmers grow their own food and develop alternative income streams—like beekeeping, agroforestry, and organic farming—are more critical than ever.
The farmers we work with are resilient, adapting to climate change, rising food prices, and social instability. But they cannot thrive alone. They need loyal partners committed to supporting them through uncertain times. Investing in diversification doesn’t just protect farming families; it safeguards the future of coffee itself.
The path forward demands collaboration, resilience, and a long-term commitment to the people who make our daily coffee rituals possible. Food 4 Farmers is proud to stand with these farmers—but together, with sustained partnership and support, we can help ensure their journey continues, even through the most turbulent times.
