Question

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

Answer 1

they have to work on large farmers land as labours.
they do not get enough surplus to sell.
they have no or very less saved money.
they are even ready to work on low wages

Answer 2

Small farmers find it difficuit to obtain capitai from their own income since their farm production is not enough. As a result :

'(a) They have to borrow money at high rate of interest for arranging capitai.

(b) They have to do additionai work as farm iabourers in order to pay the debt.

(c) Their low savings and the lack of capital iead to extreme poverty land a debt trap.