What is the main source of capital for medium and large farmer how it is different for small farmer explain
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The main difference between small and large farmers are as follows,
large farmers have large land area and therefore their total productivity is comparatively high which means they earn high profits from their land when they sell it at the market.Out of this profit a large amount quantity serves as the capital for he next season the remaining money is used for domestic purpose, investments in banks, giving money to small farmers.
Contradicting this are the small farmers, who have very small plots out of which they earn very little money which is used for household purposes like eating, then they are forced to borrow money from large scale farmers and are put into pressure of repaying their loans.
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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
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