How is the required capital in farming arranged? 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.
Why does modern farming methods require more capital?
Modern farming requires more capital because the following come at a cost, irrigation set up ,chemical fertilizers and pesticides, farm machinery like tractors and threshers which made ploughing and harvesting faster.
Why do modern farming methods require capital How is it arranged by farmers?
Modern farming methods such as use of HYV insecticides pesticides etc require a great deal of capital so the farmer needs more money than before. (i) The medium and large farmers have their own savings from farming . They are thus able to arrange for the capital needed.
Why does a farmer need capital money in 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 .
Why there is need of capital in modern farming How do small farmers manage it and what are its consequences?
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 . They borrow from large farmers or the village moneylenders or the traders who supply various inputs for cultivation. (iii) The rate of interest on such loans is very high.
What are modern methods of farming?
Modern farming method: Modern farming method means the use of HYV seeds, tube wells for irrigation, chemical fertilisers, pesticides, machineries like tractors and threshers to increase the agricultural production.
Why do modern farming methods require more capital explain 5 points?
Answer. The modern farming methods includes high yielding variety seeds, modern tools of farming like threshers,tractors,etc, pesticides,fertilizers. These things are expensive than the old inputs and tools of farming. So a large capital that is more money is needed in order to complete the modern methods of farming.
How do rich farmers arrange for capital?
(i) The medium and large farmers have their own savings from farming . They are thus able to arrange for the capital needed. ... They borrow from large farmers or the village moneylenders or the traders who supply various inputs for cultivation. (iii) The rate of interest on such loans is very high.
How do farmers in Palampur arrange for capital?
Small farmers in Palampur arrange capital for then by taking loans from money lenders . Medium and Large farmers make more profit and arrange for capital with their profit.
What is the role of capital in farming?
The role of capital is evident in farming. It helps them to buy seeds and manure for their crops . ... Later the farmers need capital to store and transport their crops to markets and vendors. Some farmers use technology for farming and capital helps in buying that technology for efficient farming.
How do large farmers Utilise surplus farm products to arrange for the capital needed for farming?
Large farmers utilizes surplus farm products to arrange capital needed for farming by selling their crops in market and using in capital.
What is the work of farmer with 1 hectare land?
A farmer with 1 hectare of land will cultivate it with wheat or rice or some other crops depending upon the type of soil, weather conditions and irrigation facilities. The farmer will be using seeds, pesticides and fertilizers. The farmer may not use machines like tractors as the size of the land is very small.
Why do you think farmers need capital?
They need capital so that they could afford good quality, fertilizers and pesticides due to which he will be fruitful by having good outcome which he can sell at market and earn money.
Who are medium and large farmers?
Medium or large farmers are those who have larger lands and earn larger amounts due their own cultivation so usually when they are in need of capital, they use their own savings from the crops or go to the banks for the purpose.
Why is Class 9 farming important?
Farming is the main production activity in the villages . Over the years there have been many important changes in the way farming is practiced. These have allowed the farmers to produce more crops from the same amount of land. This is an important achievement, since land is fixed and scarce.
What is difference between working capital and fixed capital?
The primary difference between fixed capital and working capital is that Fixed Capital is the capital which is invested by the company in procuring the fixed assets required for the working of the business whereas working capital is the capital which is required by the company for the purpose of financing its day to ...
