How do the medium and large farmers obtain capital for farming ? How is it different from the small 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 moneylenders or the traders who supply various inputs for cultivation. the rate of interest on such loans is very high and these farmers are stressed to repay loans.
2) In contrast to small farmers, medium and large farmers have their own savings from farming. they use this saving to arrange for next year’s capital and make high profits by selling surplus production and earning higher amounts. sometimes, they deposit their savings in a bank or lend their money to small farmers.
2) In contrast to small farmers, medium and large farmers have their own savings from farming. they use this saving to arrange for next year’s capital and make high profits by selling surplus production and earning higher amounts. sometimes, they deposit their savings in a bank or lend their money to small farmers.
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