The changes you describe are very different than something like introducing BI and I would expect them to do pretty much what you describe. Prices are very sens

The changes you describe are very different than something like introducing BI and I would expect them to do pretty much what you describe. Prices are very sensitive to the distribution of income, so while external capital investment may increase demand for labor and increase agricultural productivity, it also skews production away from agriculture. This is also the answer to your closing question: Since those who need the basic foodstuffs are financially weak and becoming increasingly so as the proportion of income shifts away from them, the proportion of capacity allocated to producing food for them decreases. In a UBI scheme, the exact opposite happens. The allocation of income is shifted downwards, so the allocation of production shifts accordingly.