Why does a small producer farmer have to take a loan?

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To buy area

To buy pesticides

To buy seeds

All of these

answer is D.

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Detailed Solution

To buy an area, pesticides, and seeds, a small producer farmer has to take a loan.
The majority of small farmers must borrow money to secure assets. They take out loans from wealthy farmers, village moneylenders, or traders who sell various agricultural inputs. For instance, Cotton cultivation demands high-quality insecticides and fertilisers. These inputs need a lot of money. Most of the time, the farmers must borrow money to cover these costs. The farmers rely on loans for farming and other urgent needs (urgent work), such as illness and child-related school costs. Farmers rely on loans for survival during the winter months when there is no harvest.

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