how do the medium and large farmers obtain capital for farming and how it is different from small farmers? (class9)
Answers
Answer:
1. the large and medium farmers sell ypthe surplus farm product and put most of the money in bank account
2.they are able to arrange the capital for farming in the next season from their own savings
3.they lend the small farmers from their savings and buy another tractor that could increase his fixed capital
4. small farmers mostly have to borrow money to arrange for capital.they borrow from large farmers or the village money lender or the traders who supply various inputs for cultivation
5. for small farmers ,loan is not available easily
Answer:
•Medium and large farmers obtain their capital by selling the surplus of crop produced in the market.
•They save their earnings and use it to buy various things which they need for farming.Thus they are able to arrange the capital.
•But on the other hand most of the small farmers have to borrow money to arrange for the capital. They borrow from large farmers,village moneylenders or the traders who supply various inputs for cultivation.