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13.Modern farming method requires more amount of capital investment. Small farmers have to pay higher rate of interest on money borrowed because________________________Immersive Reader i. They have to borrow from large farmers or village money lenders or the traders who supply various inputs for cultivation ii.The risk profile of small farmers is very high iii. Both (i) and (ii) iv. None of These

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Answer:

1 and 11.

They have to borrow from large farmers or village money lenders or the traders who supply various inputs for cultivation ii.The risk profile of small farmers is very high.

Explanation:

This can be exemplified with the story of a small farmer -Savita.Who needed to borrow for capital to upgrade her farm.With high interest rate  and great distress for  repayment.

She needed the money for  water, repair of tools and   materials  for the cultivation of 1 hectare wheat farm.The estimate  was  to the tune of  Rs.30, 000,

Due to this enormous amount, that she could not afford,she approached Tajpal Singh,a large farmer, who gave her the loan  of high interest rate 24%  for a period of 4 months .Besides, as part of the conditions for the loan procurement, she must work on his farm as a labourer for Rs. 100 , during the harvesting seasons.

Despite having 3 kids to take care of,and need to harvest  the produce on her own farm  at the busy harvesting period,(high risk profile) she accepted this conditions because small farmers are  securing loans, besides she needs to survive.