How do the medium and large farmers obtain capital for farming? How is it different from the small farmers? 


Answer to be written in the exam:

  1. From a portion of their yield, large and medium farmers sell excess agricultural products.
  2. A portion of the profits is set aside and used to purchase capital for the following season.
  3. A handful of them lend money to small farmers at high-interest rates and give away their savings in exchange for repayment by the following season.
  4. As a result, they can use their funds to arrange for the money needed for farming. Additionally, some farmers may decide to start up stores and purchase trucks or animals with their savings.



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Davneet Singh

Davneet Singh has done his B.Tech from Indian Institute of Technology, Kanpur. He has been teaching from the past 14 years. He provides courses for Maths, Science, Social Science, Physics, Chemistry, Computer Science at Teachoo.