Capital Needed in Farming


 
 
Concept Explanation
 

Capital Needed in Farming

Capital Needed in Farming: As modem farming methods require a great deal of capital, the farmer needs more money than before. Small farmers have to borrow money to arrange the capital. They borrow from large farmers, village moneylenders, or traders who supply various inputs for cultivation. The rate of interest on such loans is very high. They are put to great distress to repay the loan.

Large and medium farmers have their own savings from farming. They are thus able to arrange for the capital needed.

 
 


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