Question

• Answer the following questions in
29.
How does farmer trapped in debt? From where big farmers take loan?​

Answer 1

Answer:

Ans for Q1:  Farmers usually take crop loans at the beginning of the season and repay the loan after harvest. So, the farmers have to sell a part of their land to repay the loan. Credit in such a condition pushes the borrowers into a situation from which recovery is painful and they get into the debt trap.

Ans for Q2:  USDA's Farm Service Agency (FSA) provides direct and guaranteed farm loans for farmers and ranchers of all kinds. Direct loans are made and administered by local FSA offices, while guaranteed loans are made and administered by banks, credit unions, community development financial institutions (CDFIs), or other lenders.

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