How would a farmer increase his income and employment if he provided with a loan, irrigation facilities and means of transportation?
Answers
Answer:
With the help of loan, he can put better seeds, fertilisers and farm implements on his fields. This will increase his farm yield. He would have surplus in production.
Farmer
Explanation:
A farmer will require capital to buy agricultural equipment or increase the area of land cultivated or buy hybrid seeds. When a loan is provided, he will not be worried about funding these needs to improve productivity. He will also use the loan to buy vehicles to help him transport his goods to the market and sell them directly with improved transport facility. Uncertainty of monsoon will no longer affect the farmer if irrigation facility is arranged. So he will be able to produce more, sell them directly and avoid middlemen, and make good profits and provide employment to more people when he expands cultivation.