how do the medium and large farmers obtain capital for farming? how is it different from the small farmers?
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Explanation:
How do the medium and large farmers obtain capital for farming? how is it different from the small farmers?
=> Medium and large farmers obtain capital for farming from their past savings. The production of medium and large farmers is usually more than their consumption; this is how they save for their next round of farming. They sell the extra output in the market and earn money. However, small farmers do not have savings because in the very first round of farming, they do not have sufficient land to cultivate, thus extra yielding and savings are not quite possible for them. Their arrangement of capital is done by taking loans from moneylenders or large farmers at a very high-interest rate.
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QUESTIon : how do the medium and large farmers obtain capital for farming? how is it different from the small farmers?
QUESTIon : how do the medium and large farmers obtain capital for farming? how is it different from the small farmers?ANSWer : (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.