Why do farmers prefer leasehold over TOL land?

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Farmers Prefer Leasehold Land for Financial and Operational Advantages Over Temporary Occupation Licenses (TOLs)

Farmers in Cameron Highlands are strongly advocating for leasehold land titles rather than Temporary Occupation Licenses (TOLs) primarily because leaseholds enable them to secure financial backing for farm development. This preference stems from the inability of banks to offer loans against TOLs, a significant hurdle for farmers aiming to invest in their operations. The current system of TOLs also imposes considerable administrative burdens, diverting valuable time and resources away from agricultural activities.
Leasehold Land Facilitates Access to Banking Loans

The ability to obtain loans from financial institutions is a critical factor driving the demand for leasehold land. Banks typically require collateral to approve loans, and leasehold titles serve as acceptable security, unlike TOLs. This financial leverage is essential for farmers to fund necessary improvements, such as upgrading irrigation systems, acquiring better equipment, or expanding cultivation areas, thereby enhancing productivity and the long-term viability of their farms. For instance, Pertubuhan Pertanian Cameron Highlands vice-chairman Cheng Nam Hong highlighted that with land titles, farmers can secure loans for farm development.
TOLs Present Administrative Inconveniences and Insecurity

Farmers express significant dissatisfaction with TOLs due to the recurring need for renewal at the Land Office. This process can be time-consuming and problematic, particularly when relevant officers are unavailable, leading to repeated visits and delays. Local farmer MK Kumar, a second-generation farmer working on TOL land, pointed out the hassle of constantly needing to renew TOLs, which prevents them from dedicating their full attention to their farms. This insecurity and administrative burden contrast sharply with the stability and operational freedom offered by leasehold titles.
Farmers Seek Long-Term Security and Reduced Bureaucracy

The farmers are not seeking indefinite tenure but a reasonable period, such as 30-year leases, to ensure a sense of security and facilitate strategic planning. Obtaining leasehold land would alleviate the constant need to navigate bureaucratic procedures for TOL renewals, allowing farmers to concentrate their efforts on cultivation and farm management. This shift would not only benefit individual farmers but also contribute to the consistent supply of produce, with Cameron Highlands currently supplying at least 10 per cent of the peninsula's vegetables.

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Why do farmers prefer leasehold over TOL land?

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