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Q.

Most small farmers have to ____ money to arrange for capital.


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Detailed Solution

Most small farmers have to borrow money to arrange for capital.
Small farmers have little surplus production as their total production is small, and out of whatever is harvested, a significant portion is kept for the family's consumption. However, medium and large farmers have a larger area for the production and a greater harvest. Therefore, they sell off the surplus production in the market and enjoy handsome earnings. They can later use these savings to lend to other small farmers or buy capital for the next season.
 
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