Food Security, Subsistence Agriculture, and Working’s Model

Abstract Purpose This chapter examines whether donor investments in a market channel that rewards product quality increase food security in Rwanda. Specifically, do policy interventions that improve marketing channels increase the price received by farmers also increases smallholder income? Furthermore, does this increase in income improve food security? Methodology/approach To examine the effect of the policy intervention, we estimates the relationship between the share of income spent on food and income (Working’s Model) using ordinary least squares and a logit regression. Findings The empirical results support Working’s conjecture (i.e., the share of income spent on food declines as income increases). Furthermore, whether the household benefits from the improved market channel does not affect the share of income spent on food. Practical implications Increased household income appears to improve food security. However, the lack of a statistically significant effect of the policy intervention variable indicates that commercial agriculture does not eliminate household food production at home.