 Food aid programs hence take productive inputs away from local private production, creating a distortion due to substitution effects, rather than income effects.Beyond labor disincentive effects, food aid can have the unintended consequence of discouraging household-level production.Poor timing of aid and FFW wages that are above market rates cause negative dependency by diverting labor from local private uses, particularly if FFW obligations decrease labor on a household's own enterprises during a critical part of the production cycle.This type of disincentive impacts not only food aid recipients but also producers who sell to areas receiving food aid flows.