Question

How do the medium and large farmers obtains capital for farming? How is different from the small farmers?

Answer 1

They take loans from the bank which they use as investment.They return it from the money they get by selling crops.Small farmers are not having sufficient field that they can repay

Answer 2

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Large and medium farmers sell surplus farm products from a part of their produce. A part of the earnings is saved and kept for buying capital for the next season. A few of them give away the savings to small farmers and loans at high interest rates and get back the amount by the next season. Thus, they are able to arrange for the capital for farming from their own savings. Some farmers might also use the savings to buy cattle, trucks, or to set up shops.