Question

2. How do medium and large farmers obtain capital for farming? How is it different from
small farmers?​

Answer 1

Answer:

Medium or large farmers obtain their capitals through banks or through their own personal savings... whereas

small farmers obtain their capital from village moneylenders as a type of loan on which the taxes are very high

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Answer 2

Answer:

aAfter land and labour, capital is the most important factor of production.

Small Farmers generally arrange for the needed capital by borrowing money. Either from, large farmers, traders or local moneylenders. They may also take loans from government agencies.

Medium and Large farmers, on the other hand, arrange for the needed capital from their own savings (which they earn from sale of surplus farm products). It is also easier for them to take loans from banks.