What is land tenure and why is it important for agricultural investment?

• A. The legal right to own all land within a country.
• B. The legal right to use land.
• C. A system governing water rights.
• D. A tax on farmland.

Answer: (B)

Land tenure is the system of rights and rules that define who may use land, for how long, and under what conditions, including formal titles, customary or inherited rights, leases, and usufruct. It provides security to the user that they can stay on the land and benefit from improvements they make. This security matters for agricultural investment because farmers will commit resources—like soil restoration, irrigation, fencing, or perennial crops—only if they expect to reap the rewards or recover the costs. Secure tenure reduces the risk of eviction, makes it possible to borrow against land as collateral, and supports long-term planning and transfers to future generations. When tenure is unclear or insecure, farmers tend to underinvest, skip durable improvements, or abandon land, which hurts productivity. Different tenure systems exist, from formal titles to customary rights and leases, but the common thread is that clearer, more secure rights encourage investment and more productive, efficient land use.