Question

Mention the source of capital for small farmer with medium and large farmers. 5 marks​

Answer 1

Explanation:

Medium and large farmers obtain capital for farming from their own savings or take loan from the bank. Small farmers on other hand do not have sufficient funds. They borrow from large farmers on the village money lenders or the traders who supply various inputs for cultivation. The interest on such loans is very high.

Answer 2

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.