Question

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

Answer 1

Explanation:

1. The medium farmers and large farmers consists their own assets from farming and they can arrange the capital needed.

2. They put most of their money in banks and uses savings for lending money to small farmers at high-interest rates.  

3. The small farmers will borrow money for their capital from the large farmers.

4. They charge heavy interest rates and these small farmers are put into great distress when they are unable to repay the loan back.

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