Question

Explain the difference between capital needed for farming in case of small and large farmer

Answer 1

(i) The medium and large farmers have their own savings from farming. ... (ii) In contrast, the 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.

Answer 2

The farming now uses the modern technology such as HYV insecticides and many more to give the more idea style of farming.

However, it requires a large sum of money to purchase and use it which is not a big thing for big farmers.

But for the small farmer, they are dependent on borrowing money from big farmers or moneylenders at higher interest.