Small Farmers:
Small farmers, typically found in rural areas, face numerous challenges when it comes to arranging capital for farming. These farmers usually have limited financial resources and lack access to formal credit facilities. However, they employ various strategies to fund their farming activities.

1. Personal Savings:
Small farmers rely on their personal savings to arrange capital for farming. They set aside a portion of their income from previous harvests or other sources and use it for purchasing seeds, fertilizers, equipment, and other necessary inputs.

2. Informal Sources:
Small farmers often turn to informal sources of capital, such as moneylenders, friends, and family members. They borrow money at high-interest rates, which can sometimes lead to debt traps. However, these sources provide immediate financial support when formal credit options are limited.

3. Cooperative Societies:
Small farmers may join cooperative societies or self-help groups, which pool their resources to provide financial assistance to the members. These societies operate on the principle of mutual cooperation and help farmers access credit facilities at lower interest rates.

Medium and Large Farmers:
Medium and large farmers have relatively more financial resources and better access to credit facilities compared to small farmers. They employ different strategies to arrange capital for farming, which differ from those of small farmers.

1. Bank Loans:
Medium and large farmers can approach commercial banks, agricultural banks, or cooperative banks for loans. These financial institutions offer various loan schemes specifically designed for agricultural purposes. Farmers can utilize these loans to invest in land, machinery, irrigation systems, and other agricultural infrastructure.

2. Agricultural Credit Institutions:
In many countries, there are specialized agricultural credit institutions that provide financial assistance to medium and large farmers. These institutions offer loans at favorable interest rates and flexible repayment terms.

3. Equity Financing:
Medium and large farmers may raise capital by issuing equity or shares in their farming operations. This allows them to attract investors who provide funds in exchange for ownership stakes in the farming enterprise.

4. Government Support:
Medium and large farmers often benefit from government support programs, such as subsidies, grants, and loan guarantees. These programs aim to promote agricultural development and provide financial assistance to farmers for various activities.

In summary, while small farmers rely on personal savings, informal sources, and cooperative societies, medium and large farmers have access to bank loans, agricultural credit institutions, equity financing, and government support. The larger farmers have more options available to them due to their financial capacity and ability to meet the requirements of formal credit institutions.