ECONOMY: Rough road': Santa Fe coffee merchant details toll of rising costs

 This year everyone is feeling the downturn of the economy and the rising prices. Small businesses are struggling, and every business seems to be raising prices. We've noticed grocery prices increase quite a bit, and of course gasoline is much higher than 1 year ago. Today's blog is a story about a small business in New Mexico explaining their struggle. 

(Photo: Barista at Agapao Coffee. Credit: Nathan Burton, the New Mexican) 

A rough road': Santa Fe coffee merchant details toll of rising costs

Elizabeth Anne Andrews For The New Mexican , Jun 23, 2026

In the heart of downtown Santa Fe, customers still line up at Agapao Coffee and Tea’s Mud Hut for a cup of coffee and conversation.

But many are buying smaller cups these days.

“We’ve had a big increase in 8-ounce sales, which is interesting to me,” said company owner David Black. “People are still coming in, just not spending as much.”

The local coffee company raised its prices by 25 cents in the last 10 months. Black said it was the company’s first price increase since opening. The hike came as coffee prices around the country soar, thanks to tariffs, climate change and lingering market woes from the COVID-19 pandemic.

Agapao, which has sold packaged coffee since 2005, took over a kiosk at St. Michael’s Village West in 2020 and expanded into downtown in 2023. In the time since the company expanded, data from the Federal Reserve Bank of St. Louis shows the price of a pound of ground coffee beans increased from $4.47 in May 2020 to $9.51 in May 2026. “The prices have been going up and up every year,” Black said.

The trend has put pressure on coffee drinkers and on the businesses that serve them.

“It’s been a rough road but we’re getting through it for sure,” Black said Tuesday.

Labor, tariff issues

Coffee prices began to rise in 2020 and 2021. Back then, consumers could buy a pound of ground coffee beans for $4.56, according to national data.

Then came the pandemic and with it, labor shortages affecting the U.S.’s top coffee exporters. Prices didn’t come down after the pandemic ended, however.

Between 2022 and 2023, U.S. coffee prices hovered around $6 per pound. By January 2025, the price of a pound of coffee had reached $7.

Since then, the relationship between the U.S. and its top coffee exporters has become increasingly tense, causing prices to rise more dramatically over a shorter period of time.

On April 2, 2025, President Donald Trump signed an executive order announcing a tariff of at least 10% nearly every country in the world, in response to trade deficits. The U.S. Supreme Court struck down many of the tariffs in February, ruling Trump’s use of the International Emergency Economic Powers Act was unconstitutional. The president issued a less broad series of 15% ”temporary import surcharges” shortly after, with a 150-day end date under the Trade Act of 1974.

Trade relations with several major coffee suppliers have continued to sour.

Vietnam, one of the biggest exporters of coffee beans, received a 46% reciprocal tariff, making it one of the worst affected countries. Indonesia, another top coffee exporter, received a 32% reciprocal tariff.

Brazil’s 10% tariff rose to 50% in July 2025 after Trump announced an additional 40% tax in response to actions taken against Brazil’s former President Jair Bolsonaro. The tariff was modified to exempt agricultural products in November.

Tariffs have placed a significant strain on business owners, Black said, and he bore most of the cost.“It took a lot because I didn’t pass it on,” he said. “I sucked it up.”

Climate change

In addition to economic strain, climate change also affected countries where tropical climates usually allow for healthy coffee bean growth.

A 2015 study published in Springer Nature showed land in Brazil and Vietnam were becoming unsuitable for coffee farming. Last year, Brazil suffered a drought and wildfires that destroyed many coffee plants, The Associated Press reported. Typhoon Yagi in Vietnam also impacted coffee crops. Ethiopia, another top coffee producer, is experiencing significant effects of climate change. A 2023 study in Science Direct said these include changes in rainfall and temperature.

As for Black, he said he will continue to serve customers no matter the obstacles.“We love our customers,” Black said. “We really do. We wouldn’t be here without them. I love what I do.” 

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Elizabeth Anne Andrews, a student at New Mexico State University and the editor-in-chief of The Round Up, is a Santa Fe New Mexican and Searchlight New Mexico reporting intern through a fellowship with the New Mexico Local News Fund.

An Historic Reminder of the U.S. Economy in Last 3 Years, VS. the 4 Years before

Today's blog is an historic reminder of all the good things that have transpired in the last 3 years here in the U.S. and reasons why we should keep it going. At the bottom of the blog, you'll see just one of 1,000 reasons from the 4 years before that, that should warn you never to revisit that period. 

So much of what has happened during Joe Biden’s presidency is so unknown to so many when they are so obvious. Take a look at the last 3 years:

• The recession everyone predicted a year ago didn't happen. Instead, those same economists are praising the Federal Reserve for a now-likely soft landing for the economy, a remarkable achievement that will be studied for years.
• Record job creation for a president’s first term, nearly 15 million so far.
• An unemployment rate that continues to hover at a 50-year low of 3.7%, down from the 8.6% that Biden inherited from Trump.
• Inflation is down almost 80% from what it was a year ago, sitting at 3.7%.
• GDP ran an extraordinary 5.4% last quarter.
• The Dow Jones on the day Trump lost in 2020: 26,800. Trump said the market would crash if Biden was elected. Today’s Dow: 37,000-plus.
•  Multiple bills have passed addressing infrastructure, manufacturing and technology creating so many Jobs, Repairing our Bridges, Roads, and more.
• For those who think the Presidency controls gasoline prices, it doesn't. But if you're one of them, In 2023, the average price of gas was $3.52 a gallon. In 2022, it was $3.95 a gallon. That’s an 11% drop. The current national average? Just over $3 per gallon.  

These are numbers that affect everyone. How does anyone miss these tidbits of information?  

Trump’s major achievements? 

• An almost $2 trillion tax break that benefited corporations and the wealthy, INCREASING THE FEDERAL DEFICIT BY  30%. 
• The growth in the annual deficit under Trump ranks as the third-biggest increase in the nation’s history.

Need Some GOOD NEWS? Look at the Current U.S. Economy!

 Need Some GOOD NEWS? Here's a check on the U.S. Economy (sorry, GOP and Trump, it's the opposite of a disaster. In fact, it's darn good!).

Good News of the Week: Really Great Economic Numbers

 This week's Good News is about the U.S. Economy!  Here's the story-

US economy adds 253,000 jobs in April, unemployment falls.

May 5, 2023 CNBC

The nonfarm payroll growth is up from a revised growth of 165,000 in March and beats economist estimates of 180,000. The unemployment rate fell to 3.4%, down from 3.5% in March and below expectations of 3.6%. The unemployment rate is tied for the lowest level since 1969. Average hourly earnings rose 0.5% month-over-month and 4.4% year-over-year—both higher than expected.

KEY POINTS

1. Nonfarm payrolls increased 253,000 for April, beating Wall Street estimates for growth of 180,000.
2. The unemployment rate was 3.4% against an estimate for 3.6% and tied for the lowest level since 1969.
3. Average hourly earnings rose 0.5% for the month and increased 4.4% from a year ago, both higher than expected.

The unemployment rate was 3.4% against an estimate for 3.6% and tied for the lowest level since 1969. A more encompassing number that includes discouraged workers and those holding part-time jobs for economic reasons edged lower to 6.6%.

Average hourly earnings, a key inflation barometer, rose 0.5% for the month, more than the 0.3% estimate and the biggest monthly gain in a year. 

On an annual basis, wages increased 4.4%, higher than the expectation for a 4.2% gain. Both numbers raise the chances that the Federal Reserve could decide to raise interest rates again in June, though markets were only pricing in a small probability following the jobs report.

Some GOOD Economic News! Private hiring surges, jobless claims dip

 -- For those  who think the economy is still miserable, there's good news. Things are getting better in the job sector of the economy. Here's a story from Reuters News on 1/5/12:

(Reuters) - Private-sector hiring surged in December as employers added 325,000 new workers while claims for jobless benefits fell, raising hope that recent labor market improvement would continue in 2012.
The ADP National Employment Report's December job tally surprised economists who had expected a 178,000 gain. It was also well above the 204,000 private jobs added in November.
"The number is stunning," said Wayne Kaufman, chief market analyst at John Thomas Financial in New York. "This is another data point that shows our economy is healing. It fits in well with improvements we've seen in consumer sentiment, and obviously that's because there are more people getting paychecks, which is making everyone happier."
Joel Prakken of Macroeconomic Advisers, which helps produce the report, struck a note of caution, telling reporters that the December surge in hiring might have been caused in part by year-end seasonal factors and revisions were possible. In the U.S. stock market, stock futures pared losses after the data while U.S. government debt prices fell slightly.
FULL STORY: http://www.reuters.com/article/2012/01/05/us-usa-economy-idUSTRE7BM0AB20120105?feedType=nl&feedName=ustopnewsearly

Top 20 states by foreclosure rate in August

LOS ANGELES (AP) - Banks have stepped up their actions against homeowners who have fallen behind on their mortgage payments, setting the stage for a fresh wave of foreclosures. The number of U.S. homes that received an initial default notice _ the first step in the foreclosure process _ jumped 33 percent in August from July, foreclosure listing firm RealtyTrac Inc. said Thursday. The increase represents a nine-month high and the biggest monthly gain in four years. The spike signals banks are starting to take swifter action against homeowners, nearly a year after processing issues led to a sharp slowdown in foreclosures. Here is a list of the top 20 states with the highest foreclosure rates in August. The ratio shows, for example, that one out of every 118 households in Nevada received a foreclosure notice during the month. Also highlighted: The number of properties that received notices.

1 Nevada 1:118 9,677

2 California 1:226 59,383

3 Arizona 1:248 11,081

4 Georgia 1:346 11,743

5 Idaho 1:348 1,860

6 Michigan 1:349 13,016

7 Florida 1:376 23,569

8 Illinois 1:424 12,493

9 Colorado 1:439 4,933

10 Utah 1:450 2,119

11 Ohio 1:518 9,841

12 Delaware 1:606 654

13 Oregon 1:621 2,638

14 South Carolina 1:624 3,339

15 New Hampshire 1:638 940

16 Wisconsin 1:674 3,841

17 Massachusetts 1:718 3,826

18 New Mexico 1:735 1,195

19 Virginia 1:780 4,269

20 Rhode Island 1:828 546

Congress OKs bill to help retirees protect savings plans

Tom and I talk about how much money people are losing in their 401Ks all the time (including us). Good news! Congress is doing something for us about it. See the article below.
By Sandra Block, USA TODAY
Congress approved legislation that would provide relief to retirees who want to avoid inflicting further damage on their battered retirement savings plans.
The bill, which President Bush is expected to sign, allows retirees to defer withdrawals from their 401(k) plans and individual retirement accounts in 2009 without triggering a penalty. Separately, it would temporarily ease funding rules for traditional pension plans.
Ordinarily, seniors age 70½ and older are required to withdraw a minimum amount from their tax-deferred retirement savings plans every year and pay taxes on the money. The amount is based on a life expectancy factor calculated by the IRS and the value of their retirement plans at the end of the previous year. Seniors who ignore the requirement face a penalty equal to 50% of the amount they should have withdrawn.
This year, the rule has created considerable angst among retirees who have seen the value of their retirement plans shrink dramatically since Dec. 31, 2007. Unlike younger retirees, they don't have the option of postponing their withdrawals until their investments recover. Many have postponed taking minimum withdrawals in hopes that Congress or the Treasury Department will provide some relief.
FULL ARTICLE: http://www.usatoday.com/money/perfi/retirement/2008-12-11-ira-savings-retirement_N.htm?csp=Daily%20Briefing

Sad State of the Economy: Homeless won't leave pets to get off streets

This is an article from today's Nashville Tennessean newspaper (which I read on-line daily, because I love Nashville). It's outrageous that so many people are homeless in this country. Thankfully, we'll be getting new leadership that doesn't cater to the rich anymore. Regardless, people NEED their pets even in extreme hard times. Our pets ARE our children. This will really make you think, and make you thankful for what you do have.
Laurie Green, founder of the Southern Alliance for Animal Welfare, checks out Mike and Rebecca's elderly spaniel, Sheba, at Tent City, a homeless encampment in Nashville.

November 17, 2008
Homeless won't leave pets to get off streets
By Jennifer Brooks
THE TENNESSEAN
The leaves are falling, the nights are cold and Carolyn Garton would like nothing better than to move out of her makeshift shelter in Tent City and into a nice, warm house. But not without her Sunshine.
"She's my baby. God brought her to me," said Garton, pulling Sunshine into a hug. The black and tan shepherd mix thumped her tail and wriggled closer to lick her owner's chin. Garton, who's known around Tent City as Mama Bear, has been homeless for two years. Sunshine's been by her side for most of it.
"She was brought to me at a hard time in my life," said Garton, who took in the abandoned puppy on a bleak, rainy day a year and a half ago. A look around their camp shows the lengths she's gone to provide for her pet. Sunshine has her own pillow and a nest of blankets in the tent they share. Volunteers have donated kibble, veterinary care and flea drops — enough to ensure that the homeless pet is living at least as comfortably as her homeless person.
FULL STORY: http://www.tennessean.com/article/20081117/NEWS01/811170332

Tom's Rant for today: Bailouts and Executive Bonuses

Tom's rant for the day: I read in the paper that Nancy Pelosi wants Congress to appropriate money from the $700B bail out (TARP) to rescue the auto industry. Absolutely a bad decision. So I sent her and our two Senators scathing letters.
This will get your ire up as well. Here’s an article on the Yahoo! business page this morning. Companies are using the bailout money to pay top executive bonuses. I don’t know why Americans aren’t hopping up and down mad at this.
Many Americans are understandably outraged by the bailout fever that has gripped Washington this year. But even those who believe the bailouts are a "necessary evil" would have a hard time defending some of the bailout-related items that have come to light in recent days, including:
Financial institutions using TARP bailout money to pay executive bonuses. The firms, of course, say it's "different" money and bonuses are key to retaining top employees. But if you need to come to the government for a handout, shouldn't your executives forgo a bonus? Or shouldn't the government make canceling bonuses a condition of getting aid, as is the case in Europe?
The Fed refusing to reveal who received almost $2 trillion in non-TARP loans, or what collateral it has accepted from "emergency" loans made to struggling firms, as Bloomberg reports.
The Treasury Department providing a tax break to banks involved in acquisitions that could amount to $140 billion. The Washington Post reveals the change to the tax code was issued on Sept. 30, while Congress was debating the $700 billion TARP bill.
The bailouts are bad enough. But this kind of chicanery and lack of transparency makes me recall a line from another time when fear and deceit dominated Washington: Have they no shame, at long last?
This whole thing is really disgusting. Washington really needs to be cleaned up.

Great Money Saving Gasoline Tips!

* FILL UP YOUR VEHICLE IN THE EARLY MORNING WHEN GROUND TEMP IS COOLER
Service stations' storage tanks are buried below ground. The colder the ground the more dense the gasoline, when it gets warmer gasoline expands, so buying in the afternoon or in the evening when its warmer your gallon is less than a gallon.

* FILL UP AT SLOW SPEED TO MINIMIZE VAPORS CREATED BY PUMPING
The trigger has three (3) stages: low, middle, and high. All hoses at the pump have a vapor return. If you are pumping on the fast rate, some other liquid that goes to your tank becomes vapor. Those vapors are being sucked up and back into the underground storage tank so you're getting less gasoline for your money.

* FILL UP WHEN YOUR GAS TANK IS HALF FULL

The reason for this is, the more gas you have in your tank the less air occupying its empty space. Gasoline evaporates faster than you can imagine.

LARGE COMPANIES THAT DON'T IMPORT MIDDLE EASTERN OIL: Sunoco, Conoco, Sinclair, BP/Phillips, Hess, ARCO

(Thanks to Mom Feldhaus in Maine for passing these along- they're legit!)