how do small farmars arrange capital for farming.?
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Small farmers arrange capital for farming from the capital which they arrange from money lenders.
They borrow money from traders or Lage land owners or Lage farmers for buying essentials required for farming. They don't have any savings from there investments like big farmers.
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1. Most small farmers have to borrow money to arrange for the capital. They borrow from large farmers or the village money lenders or the traders who supply various inputs for cultivation..
2. The rate of interest on such loan is very high.. They are thus, able to arrange for the capital.....
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