Question

how do medium and large farmers obtain capital for farming how is it different from the small farmers ​

Answer 1

Answer:

(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

Answer:

Large and Medium farmers sell surplus farm products from a part of their produce. A part of the savings is saved and kept for buying capital for the next season. A few of them give away the savings to small farmers as loans at high interest rates and get back the amount by the next season. Thus they are able to arrange capital for farming from their own savings. Whereas the small farmers are put to great disstress as they have to repay the loan is borrowed at high rate of interest.

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