There is still no consensus in academic debate about the impacts of food price changes on smallholder farmers' food and nutrition security. This paper aims to show how food price changes affect food and nutrition security of smallholder households in the Rajshahi district in north‐western Bangladesh. To better understand smallholders' adaptive capacity with respect to uncertainties regarding food price changes, it is crucial to look more closely at the decision‐making processes of smallholder households in their dual role as producers and consumers of food (prosumers). Smallholder farmers report in focus group discussions that they diversify their cropping practices to be more resilient against food price uncertainties. However, this strategy can be only successful if they are able to invest in inputs. Farmers face several constraints when seeking to make use of opportunities to sell diverse crops given their dependence on different types of local and regional buyers of food commodities. Furthermore, it becomes obvious that an increase in food prices does not automatically relate to an increase in farm‐gate prices.