Question

Explain what are the difficulties faced by small farmers in arranging capital in comparison with medium and large farmers

Answer 1

hi there ,

answer -

a.  Farmers with small plots of land lack adequate capital to develop and take loans from money lenders in rural areas which they are unable to pay back because of high rate of interests They become victims of indebtedness and suffer.

b. Small farmers with less capital cannot use latest techniques in their methods of production like tractors, threshers and are dependent on old methods of ploughing.

c. They do not have enough capital to use HYV of seeds, fertilizers.

d. They generally have small production and do not get adequate return for their crops.

e. Most of the farmers lack savings and pressure to bear burden of large families further adds to their plight.

f. Small farmers are dependent on monsoon for their irrigation needs unlike large farmers who have their own private tube wells.

Answer 2

Modern farming methods such as use of HYV insecticides pesticides etc require a great deal of capital so the farmer needs more money than before.   (i) The medium and large farmers have their own savings from farming. They are thus able to arrange for the capital needed.   (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.   (iii) The rate of interest on such loans is very high. They are put to great distress to repay the loan, which is not so in .the case of medium and large farmers.