Question

What is the third main requirement needed in the process of production?How do the farmers make itavailable in the process of production?

Answer 1

The requirements needed in the process of production are:

• Land
• Labour
• Physical capital

1. Fixed capital : Tools, machines and buildings
2. Working Capital : Money and raw materials

• Knowledge & Enterprise

Most 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. Whereas the medium and large farmers arrange it from their own savings...

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