Concept:Under the commercial land tenure system, farmers cannot easily obtain loans because their landholding is not an acceptable form of collateral.
Explanation:In this land tenure system, the farmer usually does not possess freehold or absolute ownership rights over the land.
This means he cannot produce a legal title deed to present to a bank or financial institution.
Banks and other lenders require acceptable collateral, such as a land title, before approving agricultural loans.
Without a land title that can be pledged, the farmer is considered a high-risk borrower.
Therefore, even though he may cultivate the land, he cannot secure credit from formal lending institutions.
Among the options given, the inability to use the landholding as security is the most direct reason for this difficulty.
Answer:C. land holdings cannot be used as security