Question

why capital is needed in farming.what are different sources of capital available?

Answer 1

It is needed to buy necessary equipment s as well as to buy machinery seeds and to lend it to small farmers. Capital can be achieved by moneylenders traders large farmers who charge very high interest I hope this helps

Answer 2

Heyaa,

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There are 3 types of capital needed to farmers for their farming activities.

1. Short term loans= These loans are basically from 3 to 12 months. These loan are taken for purchasing seeds, weeds, fertiliser, manure etc.

2. Medium term loan= These loan are taken basically for 1 year to 10 year.
The purpose for taking these loan is for digging well, Bring Irrigation facility.

3. Long term loans= These loans are taken for about more than 10 years.
The purpose for taking this loan is for purchasing Machinary like Tractor, Harvestor etc.

They take loan either from Conventional sources such as bank & Co- operative society or from Non - Conventional source such as Moneylander, landowner which cost them high.

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