Name any two types of physical capital required for modern farming method. I what ways small and large farmers require this capital state one. For each
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There are two types of physical capitals:
1. FIXED CAPITAL: tools, machines and buildings.
Large farmer: uses shopicated machines like turbines, combines etc.
Small farmer: uses simple tools like plough.
2.WORKING CAPITAL: raw material and money in hand
large farmer: raw materials are large in number and as they are usually more educated than small farmers they invest their money to increase their capital and production. They also lend money to small farmers and act as moneylenders.
Small farmers: raw material is less and their money is spent in buying seeds. they borrow money, and if the harvest is not good they are stuck in the cycle of loans.
the condition of small farmer is very poor.
1. FIXED CAPITAL: tools, machines and buildings.
Large farmer: uses shopicated machines like turbines, combines etc.
Small farmer: uses simple tools like plough.
2.WORKING CAPITAL: raw material and money in hand
large farmer: raw materials are large in number and as they are usually more educated than small farmers they invest their money to increase their capital and production. They also lend money to small farmers and act as moneylenders.
Small farmers: raw material is less and their money is spent in buying seeds. they borrow money, and if the harvest is not good they are stuck in the cycle of loans.
the condition of small farmer is very poor.
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