Answer:
(i) Most 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. The rate
of interest on such loans is very high and these farmers are in great stress to
repay loans.
(ii)
In contrast to the small farmers, medium and large farmers have their own
savings from farming. They use this saving to arrange for next year's capital
and make high profits by selling surplus production and earning higher amounts.
Sometimes, they deposit their savings in a bank or lend their money to small
farmers or save their savings or buy cattle, truck or to set up shops.
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