Understanding Smallholder Farmers’ Debt and Its Link to Rural Power Structures in Lebanon

Abstract

This study examines farmer indebtedness in Lebanon, particularly Chouf coastal area, in the context of limited access to formal credit and increasing reliance on informal lending systems. Despite the importance of agriculture for rural livelihoods, the sector remains structurally marginalized, exposing farmers to financial vulnerability and debt dependency. Using a mixed-methods approach, the study combines quantitative data from a structured questionnaire with qualitative insights from semi-structured interviews. The analysis explores patterns of credit access, debt accumulation in 2019 and recently, and the impact of the 2019 financial crisis on farmers’ livelihoods. The findings reveal a significant shift from formal to informal credit sources following the crisis, accompanied by rising debt levels and reduced repayment capacity. The results show that land tenure and farm size influence borrowing capacity and exposure to debt. While farmers adopt various coping strategies, it’s causing cycles of indebtedness. The study highlights that farmer indebtedness in Lebanon is not only an economic issue but also a structural and relational phenomenon embedded in broader political and institutional dynamics. It contributes to the literature by providing a localized, grounded analysis of rural credit systems and their implications for agricultural sustainability. The findings underscore the need for inclusive financial policies, government support and formal lending systems to strengthen rural resilience.