Poverty and Food insecurity are the greatest challenges facing Ethiopia today. This study was motivated by the belief that there are various bundles of factors that have contributed for the prevalence of poverty and food insecurity with particular reference to two Peasant Associations. I also examine the extent to which poverty and food insecurity are interrelated. The study found out that the majority of the respondents were dependent on cash crops, were poor and food insecure. Poverty and food insecurity are found to be the two sides of the same coin. Both natural and human factors were identified as causes of poverty and different coping and survival strategies were also pointed out.