prices shooting up, transmitting down to the small farmers in Vietnam. HEALTH IMPLICATIONS These uncontrollable factors can cause health problems for the farmers. We used data from a long-running survey covering rural farming households in 12 provinces of Vietnam. In the survey, respondents are asked how often they experience sadness, hopelessness, a lack of concentration and poor sleep etc. To investigate the effect of coffee price volatility on these factors, we merged the household survey data with the monthly international coffee prices published by the International Coffee Organization. We found clear evidence that exposure to increased price volatility leads to greater incidence of depressive symptoms among the farmers. They also have poorer health, lower levels of happiness, increased cognitive load and alcohol consumption, and reduced social capital, all reducing overall well-being. In addition to the depressive symptoms, we found that farmers’ reported levels of happiness and life satisfaction are negatively affected. They are more likely to say they have problems in remembering things, which points to the fact that if you are constantly stressed about money, you have little mental bandwidth for other things. The farmers also report poorer physical health. They have more body aches – which medical research shows is more likely when you are stressed, as your threshold for enduring physical pain goes down. We asked the farmers how many days of work they lost due to these depressive symptoms. These are days when they are not able to do their usual activities, whether it is work or household chores, etc. The number of those days increases by 0.6 days per week. The farmers cannot process or concentrate on what they need to do. They need to lie down. That has a cost – in terms of both health and economics. There is a direct relationship between poverty and mental health. That probably seems obvious. What we are showing is that it is not just poverty that matters in these lowincome settings, it is also income uncertainty. This adds another feature affecting mental health. While we have looked at Vietnamese coffee farmers, these effects could be applied elsewhere. From similar workers in Global South nations in industries affected by people living far away, to those on zero-hours contracts here in the UK, and for whom there is no certainty from one week to the next over how many hours they will work. THERE ARE OPTIONS We have identified several long-term actions for government to help the farmers. For example, they could work with farmers to show them how they might take out long-term fixed-price contracts with buyers – essentially selling their output before harvest. These agreements would mean the farmers know how much money they will receive. But for this to happen, the farmers need a certain level of financial literacy, which is where the government could come in with education programmes. There are also certain organisations, such as Fairtrade or Rainforest Alliance, who guarantee farmers a minimum price. They compute this based on the cost of production etc. and guarantee the farmer will receive it even if the international price goes below that level. If the price is above that level, then the farmer gets a premium. Additionally, farmers receive funds to invest in projects that improve quality of life for them and their communities. Using data from Costa Rica, recent research found Fairtrade certification increases farmers’ income. Both these solutions provide added security. The farmers know at least some stable income will be coming in. As consumers, we can play a role by purchasing these certified coffees. Equally important are programmes that prioritise mental health support within farming communities, providing resources for coping with stress and building resilience for farmers who are having a tough time. The main thing is that action is needed, and leaving farmers in this perpetual state of stress and ill-health is unsustainable. FIFTY FOUR DEGREES | 41 Dr Saurabh Singhal is a Senior Lecturer in the Department of Economics. His research interests include the political economy of development, human capital development issues, and experimental economics. The article Commodity price volatility and the psychological wellbeing of farmers, by Dr Saurabh Singhal and Dr Finn Tarp, of the University of Copenhagen, is published in the American Journal of Agricultural Economics. s.singhal1@lancaster.ac.uk
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