Question: How Do These Farmers Have Their Own Savings?

How do the medium and large farmers make their own savings and how do they utilize it explain?

large farmers have surplus production which they sells in markets and gets money whereas medium farmers sometimes earn by selling the surplus yield or manages money from large farmers or money lenders.

the farmers utilise their savings for getting farm products for next cultivation..

Which is the most common source of capital for the small village farmers?

GDPthe most common source of capital for the small Village farmers is GDP. GDP is the value of all final goods and services produced within a country during a particular year.

What is the main source of capital?

The main sources of funding are retained earnings, debt capital, and equity capital. Companies use retained earnings from business operations to expand or distribute dividends to their shareholders. Businesses raise funds by borrowing debt privately from a bank or by going public (issuing debt securities).

How large farmers use their savings?

Large scale farmers use their savings in many ways. Saving can be used to generate other income like starting up a business that will help to sell the farm products. Some large scale farmers bond the government to be paid every year.

Why do farmers of Palampur follow multiple cropping?

The farmer of Palampur form multiple cropping because their land is to be fertile by doing multiple cropping the farmer grow different seeds because when one crop is damaged they can be used another and by selling they can earn money.

How do farmers obtain capital for farming?

Ans- i) Most small farmers have to borrow money to arrange for the capital. They borrow from large farmers or the village money lenders or the traders who supply various inputs for cultivation. ii) The rate of interest on such loan is very high. They are put to great distress to repay the loan.

Why do small farmers borrow money for capital?

Due to heavy competition of work, villagers get ready to work for low wages. Most 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. The rate of interest on such loans is very high.

Why did small farmers borrow money state 3 reasons?

small farmer have to arrange capital by borrowing are as follows: 1) they also have to raise production for future. 2) also,their earnings are low. 3)they have small fields which only fulfills his familys basic needs and they are left with nothing to sell in market.

What compels the small farmers to borrow money from the large farmers or money lenders?

Answer. Small farmers compel to borrow money because : * To Maintain their livelihood. * As they need money, they buy fertilizers and seeds.

What is the main source of capital for medium and large farmers how is it different from the small farmers explain?

Explanation: 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.

How small farmers manage the capital needed for farming?

Most small farmers borrow money for the requirement of capital. They borrow money from large farmers or traders that they supply various raw materials for cultivation of land or moneylenders within the village. These moneylenders charge a high rate of interest on the amount borrowed.

Who provides capital to the small farmers?

Money lenders and middle (brokers ) give capital to small farmers at high rate of interest .

What are the capital needed in farming?

Farmers need a large capital to do farming activities. They need money to buy seeds, fertilizers, pesticides and farming equipment. Farmers also need money for irrigating their land. Medium and large-scale farmers have their own capital (money) to invest in farming activities.

Who are small farmers in village Palampur?

THE SMALL FARMERS ARE THOSE WHO CAN NOT TAKE LOAN FROM BANK. THEY TAKE LOAN FROM LANDLORDS AND THEN SOMETIMES NOT ABLE TO PAY BACK AND LOSE THEIR LAND.

What is the source of capital for the 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.

What are the main sources of loan for small farmers?

Which is main source of loan for the small farmers? Rich farmers and banks Moneylenders and Banks Banks and their own savings Rich farmers and moneylendersRich farmers and banks.Moneylenders and Banks.Banks and their own savings.Rich farmers and moneylenders.

How do medium and large farmers?

(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.

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.