Question

Why are small farmers bound to borrow

Answer 1

small farmers have less capital . therefore their investment is less.

they have to borrow for the success of their agricultural crops. they need money for manure, seeds, insecticide , pesticides , harvesting equipments etcs . hence they need to borrow to raise their capital

Answer 2

Small farmers are bound to borrow because -

• Small farmers are financially weak in the most of the cases.

• And, the financial investment is very necessary in the every process of the agricultural production.

• To get the necessary amount of financial helps the farmers are mostly dependent on the financial loans (which is actually borrowing) from different financial institutions.