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Smallholding can present several disadvantages, including limited economies of scale, which can increase production costs relative to larger farms. Smallholders often face challenges accessing credit, resources, and markets, making it difficult to invest in improvements or expand their operations. Additionally, they may be more vulnerable to environmental changes and market fluctuations, which can threaten their livelihoods. Lastly, limited land and resources can restrict diversification and innovation, impacting long-term sustainability.

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