Farmers borrow more money to pay off their other loans and fall into a .

cycle of debt

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credit cycle

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capital cycle

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loan cycle

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Solution

The correct option is A cycle of debt
Poor farmers require a lot of money to buy agricultural inputs. Since they hardly have any savings, they have no option but to borrow. Moreover, farmers often fail to repay their debt due to highly unstable returns from agriculture and insufficient income. Gradually, with more loans, they get trapped in a cycle of debt.

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