question_answer

    How do the medium and large farmers obtain capital for farming? How is it different from the small farmers?  

Answer:

                    Medium and large farmers obtain capital from their own savings from farming. They are able to produce surplus and sell it in the market, which fetches them capital for the next year's crops. Whereas the small farmer need seeds, fertilisers and pesticides etc., for that they borrow money from the large farmers or the village moneylenders or the traders. They give them loan with high interest rates. They also want these small farmers to work as farm labourers in their fields during the harvest season. It is quite difficult to get loan for the small farmers in comparison to medium and large farmers.