The most common and most likely answer to this crossword clue is the 5 letter word CROFT
I've seen this crossword clue in The Guardian
C
R
O
F
T
Buddy explains!
The straight part
We know that "Smallholding" is the straight/definition part of the clue. The straight part is often a synonym or definition, in this case smallholding = croft.The cryptic/wordplay part
In cryptic crossword there's often an wordplay/cryptic part as well.This part involves a more complex hint, such as an anagram, homophone, hidden word, etc.
Sadly, We don't have an explanation for this specific crossword clue yet.
What does CROFT mean?
CROFT noun- An enclosed piece of land, usually small and arable and used for small-scale food production, and often with a dwelling next to it; in particular, such a piece of land rented to a farmer (a crofter), especially in Scotland, together with a right to use separate pastureland shared by other crofters.
- To do agricultural work on one or more crofts.
- To place (cloth, etc.) on the ground in the open air in order to sun and bleach it.
- An underground chamber; a crypt, an undercroft.
- A cave or cavern.
- A carafe.