how do the medium and large farmers obtain capital for farming? How it is different from the small farmers?
Answers
Small farmers do not have much profit from their previous crop. So, most of them take a loan for the farming capital from the village/local money lenders at a high rate of interest and promise of work on the fields of the lender for a low salary, since they have no option left.
While, in the case of medium and large farmers, it is different. They do not require loans as they have plenty of profit from the previous harvest to be used as the capital for the next crop.
Answer:
Explanation:Small farmers do not have much profit from their previous crop. So, most of them take a loan for the farming capital from the village/local money lenders at a high rate of interest and promise of work on the fields of the lender for a low salary, since they have no option left.
While, in the case of medium and large farmers, it is different. They do not require loans as they have plenty of profit from the previous harvest to be used as the capital for the next crop.
Hope it helped you