Question

How do the medium and large farmers obtain capital for farming? How is it

different from the small farmers? ​

Answer 1

Answer:

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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

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• Most small farmers have to borrow money to arrange for the capital. They borrow money 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. They are put to distress to repay the loan.
• In contrast to small farmers, the medium and large farmers have their own savings from farming. They are thus able to arrange for the capital needed.

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