Question

Explain the difficulties faced by small farmers due to lack of capital

Answer 1

Difficulties faced by the small farmers are ---

1) With less money in hand, farmers can't make use of the high yielding variety seeds that are more productive.They can only buy the traditional seeds.

2) They can't buy modern tools and equipments like tractors, other machines and have to rely upon old tools of farming.

3) They can't buy expensive fertilizers and pesticides to yield best results and to protect their crops from damage.

4) As they can't use modern methods, their crop fields give lower output, sometimes the crop gets destroyed by pests ,thus decreasing the standard of living of farmers.

5) The crop field gives lower productivity, not good quality of crop can be grown.
This pushes the farmers into poor state.

Hope This Helps You!

Answer 2

Due to lack of capital small farmers are not able to buy different equipments for harvesting, irrigation etc. they cant't buy the HYV seeds. if they want to buy all these things then many a times they take loans from the banks, moneylenders or big farmers. at last if they are not able to give the money with interest back due to some reasons then they take some wrong decisions....
Hope this helpful.