How do the medium and large farmers obtain capital for farming? How is it different from the small farmers? L
Answers
Answered by
1
Answer:
modern farming methods such as use of HYV insecticides, pesticides, etc require a great deal of capital so the farmer needs more money than before.
(i) The medium and the larger farmers have their own savings from farming. They are thus able to arrange for the capital needed.
(ii) In contrast, the small farmers have to borrow money to arrange for the capital. They borrow from large farmers or village money lenders or the traders who supply various inputs for the cultivation.
(iii) The rate of interest of such loans is very high. They are put to great distress to repay the loan, which is not so in case of medium and larger farmers.
Explanation:
Similar questions