Farmers in Mozambique are diversified, but subsistence-oriented. Thirty-seven percent of farmers in Mozambique grow a three-crop system based on maize, a legume, and an alternative staple, such as cassava or sorghum. This system is an effective adaption strategy, as it reduces crop income volatility compared to less diverse systems, but it is also associated with low levels of productivity, input use, and incomes. Adoption of cash cropping system improves farmers’ welfare. Farmers who adopt cash crops have higher average incomes and higher productivity levels. However, only 19 percent of farmers grow cash crops. Limited household resources and isolation from markets constrains the adoption of cash crop systems. Enhance commercialization by incentivizing value chain investments and improving market competition. Supporting investments in the trading and processing for widely grown crops, combined with improved pricing policies for cash crops can facilitate the adoption of more commercialized cropping systems. Expand and strengthen the improved seed sector. Increasing the availability of improved seeds is critical to promote commercialization and diversification. To this end, there is urgent need to develop and implement a National Seed Policy to regulate activities in both the formal and informal seed value chains.