1. Across all countries, genders, and labor types, there was not a single most-preferred way to spend Community Development Funds.  

Workers allocated the Community Development Funds to projects, in-kind goods, or cash payouts. They can also choose more than one category and use the dollars to match individual community needs. We found that regardless of where it was spent, empowered choice means that impact is being made where it is needed the most. A farmer in the Ivory Coast shared the power of collective decision making:  

Those who voted on and participated in the spending process also tended to be more satisfied with the outcomes: 71% said that they were satisfied with how the funds were spent and 68% said participating in Fair Trade led to a positive change in their lives.   

2. Overwhelmingly, the most significant impact of Community Development Funds is economic empowerment.  

Recipients expressed that however they are spent, funds help meet basic needs, prepare communities for emergencies, and generally boost individual, workplace, and community well-being. Participants reported that more children go to school, healthcare is more accessible, and farm workers are provided with more support. A Cocoa farmer shared that the funds helped him buy food for his family and allow his eight children to attend school. Another worker shared:  

An additional economic benefit is increased efficiency. Some recipients opt to use funds for new tools or other job supplies. This was widely cited among smallholder producers as increasing production efficiency.  

one Ivory Coast farmer said. Similarly, coconut farmers in the Philippines, who also received farm tools, expressed that they helped make harvesting easier.   

Locals play soccer at their community center in Heredia, Costa Rica. The center was created with Community Development Funds, and provides soccer matches, math courses, adult school classes, computer courses, technical workshops, and more.

3. Community Development Funds and cooperatives build community.  

Because spending decisions are made democratically, Fair Trade Premiums naturally foster engagement, shared learning, and social connection. These funds not only improve working conditions but also create stronger networks of support among workers and cooperative groups. 

Participants shared that they go to the Fair Trade Committee to seek emergency funds, ask for support in personal matters such as sending a family member to college, and to gain more education through trainings or knowledge sharing. Workers reported gaining financial literacy, more job expertise, and a common bond. One farmer shared:  

Our research indicates that Fair Trade Community Development Funds significantly enhance the ability of farmers, workers, and fishers to meet essential needs and withstand unexpected challenges, such as the global COVID pandemic.  

As communities continue to invest these funds, Fair Trade USA remains committed to monitoring their impact and amplifying worker voices to improve our program.  

To learn more about Fair Trade Premiums and how you can support this work, explore more .