Question

What is the effect of working capital on day to day farming activity?

Answer 1

Explanation:

It has great effect on day to day farmer's life because every day they have to spend money to take care of their crops, buying fertilizers, pesticides, seeds, etc.

Answer 2

Explanation:

capital is related with day-to-day activities in farming like use of seeds, pesticides, insecticides, manure, wages of labour etc. So production in farming is high for more working capital.

• Higher working capital would facilitate more purchase of seeds, fertilisers and wages, so higher yield would be there.