Question

Why do farmers need credit?

Answer 1

as the small farmers cannot afford to buy things for agriculture they are bound to take credit and if they r not able to return it with interest they have to work for them as a labourer

Answer 2

Answer:

Farmers need credit in order to meet their personal and most importantly to carry out farming. Credit is granted by government and financial institution and individual loan sharks. Farmers need credit for the below mentioned reason:

• Even today more than 60% of agricultural land in India depends on rain for water requirements. However due to climatic changes, rains has become irregular and uncertain. Hence in order to improve irrigation facility, farmers take credit.  
• In order to increase the yield, farmer need modern equipment and tools backup with quality fertizilers , pesticides , insecticides etc. For all these credit is essential.