How can livelihood risk be shared in sharecropping or tenancy farming?

Correct answer: Both owner and cultivator may be affected depending on output and cost sharing

Sharecropping or tenancy farming is an arrangement in which the cultivator works land owned by another person. The agreement may decide how the harvest, expenses, seeds, inputs, and losses are divided. Because farming depends on rainfall, prices, pests, and crop yield, the income of the owner and cultivator can both be affected. The exact sharing of risk depends on the terms of the arrangement.

Option D is correct because neither party is automatically protected from every loss. If output is low, both may receive less, and if costs are shared, both may bear part of the financial pressure. In some agreements the cultivator bears more labour or input risk, while the owner may lose rent or a share of produce. Risk does not disappear, move only to consumers, or fall entirely on the government.