Give 3 reasons why small farmers have to arrange capital by borrowing
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Here's your answer!!
The following are the reasons due to which the small farmers must borrow to support their capital reqirements.
1. Agricultural production by the small farmers is just suffiicient for self-consumption and hardly anything is left as marketable surpuls. As a result their earnings are low.
2. Even if they sell their farm produce in the market the earnings are low as just enough to sustain livelihood and not much is left for further investment purposes.
3. Generally, they do not have much of past savings that can be used for investment purposes.
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#BE BRAINLY
Here's your answer!!
The following are the reasons due to which the small farmers must borrow to support their capital reqirements.
1. Agricultural production by the small farmers is just suffiicient for self-consumption and hardly anything is left as marketable surpuls. As a result their earnings are low.
2. Even if they sell their farm produce in the market the earnings are low as just enough to sustain livelihood and not much is left for further investment purposes.
3. Generally, they do not have much of past savings that can be used for investment purposes.
✌ ✌ ✌
#BE BRAINLY
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