Question

5 marks

how do the medium and large farmers obtain money for farming?How is it different from farm labourers??

Answer 1

1. Medium and large farmers sell the surplus production in the market and have higher incomes. Thus they have own reserves from farming to manage their capital requirements.

2. Farm labourers usually do not possess any land. Rather they work in the lands of big farmers for daily wages.

3. However farm labourers with very small plots of land do not have excess production to sell and do not have extra incomes to cultivate. Hence they borrow loans from large farmers.