Medium and large farmers require a significant amount of capital for farming, which includes purchasing land, machinery, seeds, fertilizers, and other inputs. In this response, we will discuss how these farmers obtain capital for farming and how it is different from small farmers.


Medium and large farmers can obtain capital for farming through various sources, such as:

• Bank Loans: Medium and large farmers can get loans from banks by providing collateral, such as land or machinery. The loan amount depends on the collateral's value and the farmer's creditworthiness.


• Government Schemes: Governments provide various schemes and subsidies to support farmers. Medium and large farmers can take advantage of these schemes to obtain capital for farming.


• Private Lenders: Private lenders provide loans to farmers, but the interest rates are higher than banks. Medium and large farmers can approach private lenders if they cannot get loans from banks.


• Investors: Some investors invest in agriculture and provide capital to medium and large farmers. However, these investors may ask for a share in the profits.

Small farmers have limited resources and face difficulty in obtaining capital for farming. They mostly depend on moneylenders for loans, who charge high-interest rates. Moreover, small farmers cannot provide adequate collateral for bank loans, making it challenging to get loans from banks. As a result, they often rely on their savings or borrow money from friends and family to meet their farming needs.


In conclusion, medium and large farmers have various options to obtain capital for farming, such as bank loans, government schemes, private lenders, and investors. However, small farmers face difficulties in getting capital for farming due to their limited resources and lack of collateral.