Question

How do small farmers arrange the capital for farming?

Answer 1

Hint: We have to know that the small farmers borrow money to arrange the capital amount for their farming. Medium and large farmers for the most part have excess money by selling their homestead produce.

Complete answer:
Since farmers have land and houses they effectively get credit from banks. Small farmers then again will be unable to get bank advances. They need to rely upon the nearby vendor and money lender for credit.
i) Most small farmers need to get cash to require capital. They get from huge farmers or the town cash moneylenders or the merchants who supply different contributions for cultivation.
ii) The pace of revenue on such advance is high. They are put through incredible pain to reimburse the loan.
iii) As opposed to small farmers, the medium and large farmers have their own reserve funds from cultivating. They are in this manner, ready to arrange the capital.
Small farmers get cash to arrange the capital for their cultivation. They get it from large farmers, town moneylenders.
Small farmers get capital for cultivating by acquiring capital or cash from large farmers or cash banks to get capital for cultivating who supply different information sources and cash for development. Outcomes the pace of interest on such advances is high, which puts the small farmers into incredible misery to reimburse the credit. Small farmers acquire capital for cultivating by getting capital or cash from big farmers or cash moneylenders.

Note: We have to remember that the current cultivating techniques, for example, utilization of HYV bug sprays pesticides and so forth requires a lot of capital so the farmer needs more cash than previously. The medium and large farmers have their own reserve funds from cultivating. Thus, they would be able to get the capital they need.