Question

name any two type of physical capital required for modern farming method.in what way do small and large farmers aqcuire these physical capital?State one point of each.

Answer 1

Fixed capital and Working capital are two types of physical capital required for the modern farming method.
By tools,machine,buildings(fixed capital :example; turbine,computer,generator,etc)
By rawaterial annd money in hand(working capital:example;yarn for weaver,clay for potter)

Answer 2

Two type of physical capital required for modern farming method

1) using of chemical fertilizers, pesticides,weedicides.

2) using of tractors,harvesters etc.

Different ways by which small farmers and large farmers acquire these physical capital

1) .The medium and large farmers sell their surplus farm production in the market. Part of their earnings is saved and kept for buying capital for the next season.

2) .They are influential and financially sound. So it is easy for them to obtain loan from cooperatives and rural development banks.

3) .Small farmers have low farm production and do not have sufficient earnings. They depend upon loans from big farmers and money lenders at higher rate of interest and trapped in the vicious clutches of debt and poverty.

Modern farming methods such as use of HYV insecticides pesticides etc require a great deal of capital so the farmer needs more money than before.   (i) The medium and large farmers have their own savings from farming. They are thus able to arrange for the capital needed.   (ii) In contrast, the small farmers have to borrow money to arrange for the capital. They borrow from large farmers or the village moneylenders or the traders who supply various inputs for cultivation.   (iii) The rate of interest on such loans is very high. They are put to great distress to repay the loan, which is not so in .the case of medium and large farmers.  

Non - Farming activities includes activities excluding agriculture. Some of thenon - farming activities are: Dairy - It is a common activity in many villages. People feed their buffaloes on various kinds of grass and Jowar and Bajra.

Non-farming activities can include various ventures like handicrafts, household as well as non-household small-scale manufacturing, construction, mining, quarrying, repair, transport, community service etc, but of course in the designated rural areas.