The reduction of rural poverty is one of the greatest challenges the government of Nepal faces. Since most of the country’s agricultural production is semisubsistence oriented, increased commercialization of this rural-based economy is essential for poverty reduction and economic growth. Consequently, farm output diversification and productivity improvements are priority areas for the government. 1 In general, the commercialization of subsistence agriculture is fundamental to economic growth in developing countries. The key issue is not so much whether subsistence agriculture should be transformed but how it should be transformed. 2

There are ways in which agricultural commercialization could have negative consequences for the poor: the concentration of land tenure and a less varied diet characterized by the purchase of empty calories, to name a couple. In general, the literature indicates that agricultural commercialization is associated more with missed opportunities for improving welfare than with a deterioration in the welfare of the poor. For example, increases in household income that are generated for many (but not all) of the poor cannot be converted into improved nutrition because of weak financial markets for seasonal consumption smoothing and weak health infrastructure. 3 A conceptual literature on gender and development provides the scope for a focus on both men and women. 4 Nonetheless, there are not too many