UPDATE 3-Tropical Storm Ida pummels Nicaragua

* Ida weakens after making landfall as category 1 hurricane

* Persistent rain could affect coffee farms further inland

* Storm could move into oil-rich Gulf of Mexico next week (Adds storm weakening, sugar growers' comment)

By Ivan Castro

MANAGUA, Nov 5 (Reuters) - Hurricane Ida weakened to a tropical storm as it churned through eastern Nicaragua on Thursday after cutting power and ripping roofs on little-developed Caribbean islands.

Hundreds of people were evacuated from flimsy homes on the Corn Islands, near the port of Bluefields, as Ida drenched the remote Miskito coast with heavy rain. The U.S. National Hurricane Center warned of floods and mudslides.

At 1 p.m. EST (1800 GMT) Ida's winds had decreased to near 65 mph (100 kph) and further weakening was likely as the storm moves up into Honduras during the next two days. The storm was nearly stationary about 75 miles (125 km) north of Bluefields, the Miami-based NHC said.

Ida is expected to regain strength after it moves back over the Caribbean sea on Friday, and could enter the oil and gas-rich Gulf of Mexico next week.

General Mario Perez-Cassar, Nicaragua's civil defense chief, said strong winds ripped roofs and knocked out power in Big Corn Island and Little Corn Island, home to shrimp and lobster fishermen.