Investigating the Effects of Microcredit on Food Security of Rural Households: Evidence from Zehak County, Iran

Document Type : Original Research

Authors
Alireza Sani Heidary
Mahmoud Daneshvar Kakhki
Mahmoud Sabouhi sabouni
Hosein Mohammadi
Department of Agricultural Economics, Agricultural Faculty, Ferdowsi University of Mashhad, Mashhad, Islamic Republic of Iran.
Abstract
Microcredit plays a vital role in rural households’ food security. However, the effects of microcredit on improving the food security of households have not yet been well studied and understood in Iran. Thus, the purposes of this research was to analyze the success of microcredit programs on enhancing the food security of rural households in Zehak County, Iran, using the propensity score matching method and bootstrap algorithm. Therefore, two food security indices, including Food Consumption Score (FCS) and Household Food Insecurity Access Scale (HFIAS) were used. The results revealed that 100% of the households faced food insecurity. The prevalence of food insecurity was 20.0, 42.5, and 37.5% for mild, moderate, and severe food insecurity, respectively. In addition, 30% of households were in poor status of food consumption. Our findings emphasize the positive and significant role of microcredit in improving food security and demonstrated that microcredit decreased the HFIAS index of the recipient households by 24.3-27.8% and increased the FCS index by 25.8-31.4%. Therefore, policy- and decision-makers should promote and strengthen governmental and non-governmental organizations providing microcredit. It is also recommended to provide information and reduce collateral restrictions to increase households' access to microcredit.

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Journal of Agricultural Science and Technology
Volume 27, Issue 6
November and December 2025
Pages 1321-1336