Question 3
Land Use and Land TenureUnder the communal land tenure system, farmers find it difficult to secure loans because
- A.land holdings are small and fragmented.
- B.they are poor.
- C.land holdings cannot be used as security.
- D.they are mostly illiterate.
Show the answer and explanation
Answer: C (land holdings cannot be used as security.)
Explanation
The farmer does not own communal land, so he cannot pledge it as collateral for a loan.