A recent public health study found that income uncertainty, especially in the context of volatile coffee prices, has a negative impact on the mental health of smallholder coffee farmers.
After studying smallholder coffee farmers in Vietnam, the world’s second-largest coffee producer, the researchers suggested their findings may also apply to those in other low- and middle-income countries that rely heavily on agricultural exports, which are sensitive to commodity prices.
“Our results suggest that not only poverty but also the risk of poverty caused by price volatility has a significant negative impact on the mental health of farmers in low-income countries,” Finn Tarp, professor at the University of Copenhagen and coordinator of the Development Economics Research Group (DERG), said in a statement.
The study, co-authored by Tharp and Saurabh Singhal of Lancaster University in the UK, was recently published in the American Journal of Agricultural Economics, a publication of the Society of Agricultural and Applied Economics.
Coffee commodity prices have experienced extreme volatility since the internationally established quota system collapsed more than 30 years ago, and numerous studies have shown that small coffee farmers are particularly vulnerable to price fluctuations.
Researchers in a new study found that price fluctuations correlated with a 12.3% to 15% increase in depression symptoms among Vietnamese coffee farmers.
“Because coffee plants have a lifespan of more than 50 years and are perennial, farmers cannot quickly switch to other crops in response to price fluctuations,” the authors write. “This inflexibility leaves farmers exposed to volatile international commodity markets.”
Smallholder coffee farmers experiencing price fluctuations were found to have more pessimistic expectations about their future economic well-being, increased cognitive load, higher alcohol consumption, and reduced social capital.
According to the authors, their findings are consistent with the broader literature on economic uncertainty, which suggests that income instability can lead to poor mental health. They called for government intervention regarding coffee prices to improve farmers’ mental health and public health.
“Governments should consider implementing policies to stabilize farm incomes, such as providing price insurance and expanding access to market-based risk management,” Tharp said.
Read the full survey here.
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