Question

what is the difference between small and large farmers ? how do they manage capital ? what do they do with their savings ?

Answer 1

Small farmer means a farmer who cultivates land of area between 1 and 2 hectares. Large farmer means a farmer who cultivates more than 5 hectare of land.

Small farmers obtain capital by borrowing from moneylenders or microfinance organizations. Large farmers obtain capital by borrowing from banks.

They put their savings in banks.