Question

Explain breifly how do medium and large farmers raise capital for farming and non- farm activities

Answer 1

•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
•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