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Why may a farmer invest less in long-term land improvement under insecure tenancy?

Answer and explanation

Correct answer: Because future control over land is uncertain

Direct answer: Option A, because future control over the land is uncertain. Long-term land improvement means work such as adding soil-improving material, preventing erosion, building drainage, or planting trees. These improvements may cost money and show their full benefit only after several seasons. A tenant with insecure rights may be removed, lose the lease, or be unable to use the land later. Therefore, the tenant may feel that another person will enjoy the future benefit of the investment. Option A correctly connects insecure control with a weaker incentive to invest. Option B is wrong because crops are normally harvested; harvesting is not the reason for low investment. Option C is wrong because irrigation is not always free, and free irrigation would not by itself explain insecure tenancy. Option D is wrong because farm work usually requires labour. The key chain is: uncertain tenancy → uncertain future benefit → lower willingness to make long-term improvements. Memory cue: secure rights encourage long-term investment.

Related tags

AgricultureTenancyLand-ImprovementInvestment

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