How do the medium and large farmers obtain capital for farming? How is it different from the small farmers?
Answers
Large or medium farmers-
They obtain capital by selling crops to market
This money can be invested in bank and they get rate of interest.
They also give money to small farmers at very high raye of interest.
They also take loan from bank because they have collateral security. They easily get loan.
If they can not get any capital from this they take help from family or friends as their family is financially sound.
Small farmers - they do not get gpod capital from selling crops.
They take loan from big farmers at very high rate of interest. Their condition would be better if they take loan from bank. But it is not possible due to absence of collateral security. Their condition become worse
In contrast to the small farmers, the medium and large farmers have their own savings from farming. They are thus able to arrange for the capital needed.