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

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Gaurav Bansal

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The medium and large farmers have their own savings from farming or the produce they would have done to meet the requirements of the future farming. On the other hand, small farmers have to borrow money from the lenders or banks or the large farmers to obtain capital required for farming.
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Modern farming methods such as use of HYV insecticides pesticides etc require a great deal of capital so the farmer needs more money than before. (i) The medium and large farmers have their own savings from farming. They are thus able to arrange for the capital needed. (ii) In contrast, the small...
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Modern farming methods such as use of HYV insecticides pesticides etc require a great deal of capital so the farmer needs more money than before. (i) The medium and large farmers have their own savings from farming. They are thus able to arrange for the capital needed. (ii) In contrast, the small farmers have to borrow money to arrange for the capital. They borrow from large farmers or the village moneylenders or the traders who supply various inputs for cultivation. (iii) The rate of interest on such loans is very high. They are put to great distress to repay the loan, which is not so in .the case of medium and large farmers. read less
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The money requirements of small and large farmers are met by borrowing money from large farmers or the village moneylenders or the traders who supply various inputs for cultivation, which have a high interest. Whereas on the other hand ,medium and large farmers have a high productivity and so, they keep...
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The money requirements of small and large farmers are met by borrowing money from large farmers or the village moneylenders or the traders who supply various inputs for cultivation, which have a high interest. Whereas on the other hand ,medium and large farmers have a high productivity and so, they keep some grains for self consumption and sells the rest of grains into the market which met the money requirements of medium and large farmers and also, they are able to keep some money to deposit in their bank accounts, some to lend money to the small and marginal farmers and some for increasing their working capital and rest for their own expenses. read less
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Medium and large farmers retain a part of their produce and sell the surplus in the market. This provides them with the required capital for farming. Most of them even use these earnings to provide loans to small farmers. By charging high rates of interest on these loans, they succeed in furthering their...
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Medium and large farmers retain a part of their produce and sell the surplus in the market. This provides them with the required capital for farming. Most of them even use these earnings to provide loans to small farmers. By charging high rates of interest on these loans, they succeed in furthering their earnings. Thus, medium and large farmers have ready capital with them from one agricultural season to the next. The situation of small farmers is in stark contrast. They begin an agricultural season with no working capital and end the season on more or less the same note. To begin working on their farms, they take loans at high rates of interest. Due to the small sizes of their farms, their total production is small. Their produce is kept for their needs or for repaying their lenders. As a result, they have no surplus to sell in the market, and thus, have no savings. read less
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(i) The medium and large farmers have their own savings from farming. ... They borrow from large farmers or the village moneylenders or the traders who supply various inputs for cultivation. (iii) The rate of interest on such loans is very high.
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Medium and large farmers retain a part of their produce and sell the surplus in the market. This provides them with the required capital for farming. Most of them even use these earnings to provide loans to small farmers. By charging high rates of interest on these loans, they succeed in furthering their...
read more
Medium and large farmers retain a part of their produce and sell the surplus in the market. This provides them with the required capital for farming. Most of them even use these earnings to provide loans to small farmers. By charging high rates of interest on these loans, they succeed in furthering their earnings. Thus, medium and large farmers have ready capital with them from one agricultural season to the next. The situation of small farmers is in stark contrast. They begin an agricultural season with no working capital and end the season on more or less the same note. To begin working on their farms, they take loans at high rates of interest. Due to the small sizes of their farms, their total production is small. Their produce is kept for their needs or for repaying their lenders. As a result, they have no surplus to sell in the market, and thus, have no savings. read less
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Medium and large farmers are able to obtain capital more easily in comparison to small farmers as most of the times medium and large farmers are able to save some of the money that they earned from previous harvest and banks provide them with with loan more easily but small farmers depend upon loans...
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Medium and large farmers are able to obtain capital more easily in comparison to small farmers as most of the times medium and large farmers are able to save some of the money that they earned from previous harvest and banks provide them with with loan more easily but small farmers depend upon loans from exploitative landlords and other rich people who generally charge arbitrary and unreasonabbly high interest rate. read less
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