How do the medium and large farmers obtain capital for farming?How is it different from the small farmers?
Answers
Explanation:
Modern farming methods such as the 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 in great distress to repay the loan, which is not so in .the case of medium and large farmers.
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Answer:
Medium and large farmers have surplus of production and by which they sold it and obtain capital from that .
but on the contrary small farmers don't have surplus of production that they can earn and obtain capital .so .small farmers take loans from and later they get pressurized by large farmers for giving their money with interest...
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