What is Leasehold System of land tenure? The leasehold system type of land tenure requires the payment of certain amount of money for the use of the land over a stated period of time.
In other words, leasehold tenure system is a special contract existing between a person called the leasor and another called the leasee for the lease of a piece of land for a specified period of years, which may be ten years, twenty years fifty years. The lessee will exercise his right on the use and maintenance of the land for the period of lease.
Advantages of Leasehold System of land tenure
It ensures the use of available land. It enables the farmer to maximize the use of the land in terms of maintenance of the soil fertility in order to improve the productivity of crops
Disadvantages or Problems of Leasehold System of land tenure
(i) The land cannot be used as security to obtain loan from commercial banks. (ii) The farmer cannot develop the land beyond the lease agreement terms. (iii) Perennial crops like oil palm, cocoa, rubber. etc cannot be grown.