Which Is The Most Common Source Of Capital For The Small Village Farmers?

What is the source of capital for small farmers?

Medium and large farmers obtain capital for farming from their own savings or take loan from the bank.

Small farmers on other hand do not have sufficient funds.

They borrow from large farmers on the village money lenders or the traders who supply various inputs for cultivation.

The interest on such loans is very high..

Which is the main source of loan for the small farmers?

Rich farmers and banks. Moneylenders and Banks. Banks and their own savings. Rich farmers and moneylenders.

What is commercial farming?

Commercial agriculture is the opposite of subsistence agriculture. Commercial agriculture is basically growing crops intended to sell the produce for profit in the local or export market.

Which is the main source of earning money in the village of Palampur?

farmingthe main source of income in palampur is farming and they also work as poutry.

How do medium and large farmers obtain?

(i)Medium and large farmers obtain capital for farming from their own savings or from the banks as loan. (ii)Small farmers on the other hand borrow from large farmers or the village moneylenders or the traders, who supply various inputs for cultivation. The interest on such loans are usually high.

What are the important sources of capital for farmers?

Of the formal sector, commercial banks, rural development banks, agricultural development banks are the most common sources of loan funds for agricultural development. These financial institutions can be an important source of aquaculture loan funds as well.

What is the main source of capital for medium and large farmers?

The main source of capital for the medium and the large farmers is by selling the surplus sale in the markets and earn good profits. They also have savings which they can use in the season and again save and use that savings in the next season.

How do medium and large farmers obtain capital for farming How is it difficult for small farmers?

(i) The medium and large farmers have their own savings from farming. … (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.

How do small farmers obtain capital for farming what is its consequences?

Small farmers obtain capital for farming by borrowing capital or money from big farmers or money lenders to obtain capital for farming who supply various inputs and money for cultivation. Consequences- The rate of interest on such loans is very high, which put the small farmers into great distress to repay the loan.

What are the positive impact of green revolution?

In addition to producing larger quantities of food, the Green Revolution was also beneficial because it made it possible to grow more crops on roughly the same amount of land with a similar amount of effort. This reduced production costs and also resulted in cheaper prices for food in the market.

What are the sources of capital in Palampur?

Answer. ☆selling the surplus sale in markets and earn good profit. ☆they have saving so they use that saving in next seasons. ☆ they also earn money by landing loans to small landless farmers.