Question

in what ways is capital raised by medium and large farmers different from the way it is raised by small farmers? Give three points of distinction

Answer 1

1)medium and large farmers have surplus on their sale through which which they have capital for the purchase of raw materials and machinery for next crop production.
2)whereas small farmers do not have enough surplus to make capital for next crop.they keep the crop produced for their own consumption.
3)small farmers take loans from medium and large farmers to fulfil their requirements for farming.sometimes they are not able to repay loan thus they land in debts.