In what way are sources of capital required for farming by large farmers different from the capital sources for small farmers
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The main source of capital for the medium and the large farmers is by selling the surplus sale in the markets and earn good profits. They also have savings which they can use in the season and again save and use that savings in the next season. They also earn money by lending loans to small landless labourers and farmers at high interests rates and further increase their wealth.
However, the case is the opposite with the small farmers. They don't have surplus to sell in the markets or to even fulfil the food demand for their families. Finally, they are forced to take loan from medium and large farmers at increased interests rates and eventually fall into a debt trap. They also have to work on the fields of others farmers or look for other work during the year so as to acquire two times meal.
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However, the case is the opposite with the small farmers. They don't have surplus to sell in the markets or to even fulfil the food demand for their families. Finally, they are forced to take loan from medium and large farmers at increased interests rates and eventually fall into a debt trap. They also have to work on the fields of others farmers or look for other work during the year so as to acquire two times meal.
this is your answer i think this will help you
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