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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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Read the text given below and answer the following questions:Farming is the main production activity in Palampur. 75 percent of the people who are working are dependent on farming for their livelihood. All land is cultivated in Palampur. No land is left idle. During the rainy season (kharif) farmers grow jowar and bajra. These plants are used as cattle feed. It is followed by cultivation of potatoes between October and December. In the winter season (rabi), fields are sown with wheat. The main reason why farmers are able to grow three different crops in a year in Palampur is due to the well-developed system of irrigation.To grow more than one crop on a piece of land during the year is known as multiple cropping. One way of increasing production from the same land is by multiple cropping. The other way is to use modern farming methods for higher yield. Yield is measured as crop produced on a given piece of land during a single season. Till the mid1960s, the seeds used in cultivation were traditional ones with relatively low yields. Traditional seeds needed less irrigation. Farmers used cow-dung and other natural manure as fertilizers. All these were readily available with the farmers who did not have to buy them.The Green Revolution in the late 1960s introduced the Indian farmer to cultivation of wheat and rice using high yielding varieties (HYVs) of seeds. Farmers of Punjab, Haryana and Western Uttar Pradesh were the first to try out the modern farming method in India. In Palampur, the yield of wheat grown from the traditional varieties was 1,300 kg per hectare. With HYV seeds, the yield went up to 3,200 kg per hectare. There was a large increase in the production of wheat. Farmers now had greater amounts of surplus wheat to sell in the markets.Q. The Green revolution in the late 1960s introduced the Indian farmer to cultivation of

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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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