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How do the medium and large farmers obtain capital for farming? How is it different from the small farmers?
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How do the medium and large farmers obtain capital for farming? How is...
Obtaining Capital for Farming
Medium and Large Farmers
- Medium and large farmers typically have access to more sources of capital than small farmers
- They can obtain loans from commercial banks, cooperative banks, and government agencies
- They may also have the option of borrowing from friends and family or using their own savings
- Many medium and large farmers also have the ability to sell their produce at a higher price, which can generate additional income for their farm
- They may also be able to access government subsidies and programs to support their farming operations
Small Farmers
- Small farmers often have limited access to capital
- They may not qualify for loans from commercial banks due to their limited income and lack of collateral
- They may have to rely on informal sources of credit, such as moneylenders, which can carry high interest rates and put them in a cycle of debt
- Some small farmers may also be able to access government programs and subsidies, but these are often limited and may not provide enough support to sustain their operations
- Small farmers may also have to sell their produce at a lower price, which can limit their income potential
Differences Between Medium/Large and Small Farmers
- Medium and large farmers have more access to formal sources of credit
- Small farmers often have to rely on informal sources of credit, which can be more expensive and risky
- Medium and large farmers may have higher incomes and more resources to invest in their farming operations
- Small farmers may have limited resources and struggle to make ends meet
Community Answer
How do the medium and large farmers obtain capital for farming? How is...
Medium and large farmers have their own savings from farming they are thus able to arrange for the capital needed. On the other hand, most small farmers have to borrow money from the village moneylenders, large farmers etc to arrange for the capital needed. The rate of interest on these loans is very high and they are put to great distress in repaying the loans
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How do the medium and large farmers obtain capital for farming? How is it different from the small farmers? for Class 9 2025 is part of Class 9 preparation. The Question and answers have been prepared according to the Class 9 exam syllabus. Information about How do the medium and large farmers obtain capital for farming? How is it different from the small farmers? covers all topics & solutions for Class 9 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for How do the medium and large farmers obtain capital for farming? How is it different from the small farmers?.
How do the medium and large farmers obtain capital for farming? How is it different from the small farmers? for Class 9 2025 is part of Class 9 preparation. The Question and answers have been prepared according to the Class 9 exam syllabus. Information about How do the medium and large farmers obtain capital for farming? How is it different from the small farmers? covers all topics & solutions for Class 9 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for How do the medium and large farmers obtain capital for farming? How is it different from the small farmers?.
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