Question

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3. Distinguish between a tenant farmer and a sharecropper. Whose exposure to risk is greater and why?

Answer 1

Answer) Sharecropping is a system of agriculture or agricultural production in which a landowner allows a tenant to use the land in return for a share of the crop produced on the land.

A tenant farmer is onewho resides on and farms land owned by a landlord. Tenant farmers usually pay the landowner rent for farmland and a house. They claim the crops they planted and made their own decisions about them. After harvesting the crop, the tenant sold it and received income from it. From that income, he paid the landowner the amount of rent owed.

Tenant farmer has to give a share to the landowner, which is already decided. In share cropping both, the tenant and the landowner, take the risk together of harvest, while in the tenant farming gives the total risk to the tenant, as the landowner receives a fixed amount of crop or a tax for his land. So tenant is at more risk.