Answer:
Large
farmers retain a part of their produce and sell the surplus in the market. This
provides them with the required capital for the next season. They may use some
of this for giving loans to small farmers at high interest rates, thus
increasing their capital further. Thus, medium and large farmers have ready
capital with them from one agricultural season to the next.
In the small farmer's case, they begin with no working capital and have
to take loans at high rates of interest. Due to the small sizes of their farms,
their total production is kept for their needs or for repaying their lenders.
Hence they have no savings.
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