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This study is focused on understanding sources and patterns of vulnerability of wheat smallholder farmers in Northeast Iran. We conducted a farm household survey and recorded multiple environmental and socio-economic attributes of 391 wheat smallholder farmers. A Vulnerability Scoping Diagram and Principal Component Analysis served to identify key factors determining wheat farmer's vulnerability. Also, we performed a cluster analysis to classify wheat farmers into three vulnerability types. Although drought affects all types as main environmental stressor, only for Cluster 2 was it the key vulnerability factor. For Clusters 1 and 3 socio-economic vulnerability components prevailed: for farmers categorized in Cluster 1 land consolidation was the main problem, while the current wheat import policy was the key problem for Cluster 3 farmers. Multiple tailored policies are needed that reduce the vulnerability of wheat farmers in all clusters. Supportive government policies should for example focus on avoiding price distortions from wheat imports for Cluster 3, land consolidation for Cluster 1 and collective tackling of pests and weeds for Cluster 2. Simultaneous provision of farm advisory services will benefit farmers of Clusters 1 and 3, while availability of improved seeds (drought-tolerant varieties) and other inputs will lower the environmental vulnerability of all farmers. [ABSTRACT FROM AUTHOR]