Name any two types of physical capital required for modern farming method. In different ways do the small farmer and large farmers obtain capital for farming
Answers
Physical capital required for modern farming by farmers are pesticides, fertilizers and insecticides. Modern farming also requires the farmers to invest in tractors and harvesters for farming.
EXPLANATION:
Medium and large farmers obtain this physical capital by selling their surplus in the market and using a part of their savings for buying fertilizers etc. Large farmers are financially sound and so can get loans easily and also invest their own money for buying tractors and other equipment.
Small farmers who do not have sufficient earning borrow money from large farmers and may also approach banks and cooperative societies for loans.
Answer:
Farmers use two types of physical capitals for their modern farming method
• For modern farming they need High Yielding Variety Seeds, Pesticides as well as Fertilizers.
• Then they need tractors, harvesting machines, pumps as their part of farming.
Small farmers and large farmers obtain capital by following method
• Small farmers use their surplus get the capital amount. They sell the left overs to market and obtain their capital. If they need more amount they can also get loan from rural banks as agriculture loan.
• Large farmers usually have big area of land and attain more money. They usually sell their products and get the money.