how small farmers manage the capital needed for farming
Best answer
Most small farmersborrow moneyfor the requirement of capital. They borrow money from large farmers or traders that they supply various raw materials for cultivation of land or moneylenders within the village. These moneylenders charge a high rate of interest on the amount borrowed.
People also ask
How do small medium and large farmers arrange capital needed for farming?
How do small, medium and large farmers arrange capital needed for farming? Most small farmers borrow money for the requirement of capital. They borrow money from large farmers or traders that they supply various raw materials for cultivation of land or moneylenders within the village.
What are the three capital assets required in a farm?
This article throws light upon the three important capital assets required in a farm. The capital assets are: 1. Farm Buildings 2. Irrigation 3. Farm Machinery. Capital Asset # 1. Farm Buildings: Livestock need to be protected from the in-clemencies of weather.
Why do small farmers have to borrow money?
Most small farmers have to borrow money to arrange for the capital. They borrow from large farmers or the village moneylenders or the traders who supply various inputs for cultivation. The rate of interest on such loans is very high and these farmers are in great stress to repay the loans taken.
What are the disadvantages of loan to small farmers?
Consequences- The rate of interest on such loans is very high, which put the small farmers into great distress to repay the loan. Small farmers obtain capital for farming by borrowing capital or money from big farmers or money lenders to obtain capital for farming who supply various inputs and money for cultivation.
