I did a little experiment in a game where I built a hut and destroyed the hut. The population limit granted by the hut remained (added +25 possible pop) while I was refunded the food requirement for the hut.
There also is currently no penalty for negative food. Some small penalty should occur when this happens
Why? Let the people starve and live on the streets, and then build your country on forced hobo labor
Well, at least your city won't grow anymore at that point...
I've been in the negative on food a few times myself. I'd hope that there is a starvation game mechanic in the works for some future patch. Exploit it while you can!
A city can have negative food. But if your faction overall has negative food, then settlements go into starvation mode. An icon will show up on the particular cities starving.
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