Question

What is the main source of capital for medium and large farmers? And how it is different from small farmers ?

Answer 1

Answer:

hi friend

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. The interest on such loans is very high.

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.

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