Question

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Answer 1

Answer:

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Explanation:

Most small farmers have to borrow money to arrange for the capital. They borrow from large farmers or the village moneylenders or the traders who supply various inputs for cultivation. The rate of interest on such loans is very high and these farmers are in great stress to repay the loans taken.

In contrast to the small farmers, medium and large farmers have their own savings from farming. They use this savings to arrange for next year’s capital and make high profits by selling surplus production and earning higher amounts. Sometimes, they deposit their savings in a bank or lend their money to small farmers or save their savings or buy cattle, truck or to set up shops.

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Answer 2

Answer:

The money requirements of small and large farmers is met by borrowing money from large farmers or the village moneylenders or the traders who supplies various inputs for cultivation ,which have a high interest . Whereas on the other hand ,medium and large farmers have a high productivity and so, they keep some grains for self consumption and sells the rest of grains into the market which met the money requirements of medium and large farmers and also, they are able to keep some money to deposit in their bank accounts,some to lend money to the small and marginal farmers and some for increasing their working capital and rest for their own expenses

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