From where do the small farmers get the capital needed for farming? How does it affect the farmers?

Small farmers who have only 2 hectares of land for cultivation usually do not have surplus money, and they have to borrow money to buy seeds and various other inputs. They borrow money from moneylenders or the traders who supply various inputs for cultivation. Moneylenders used to give them a loan at a high rate of interest. They have to work in the fields of large farmers to earn extra money so that they can clear their debt. They used to clear their debts after harvesting and selling the surplus crop (surplus crop is the crop which is left with farmers after retaining some of it for their consumption), but they do not get enough money to clear their complete debt. The traders who supply crops in the market used to buy them at low cost from farmers and sell them at a high cost to the shopkeepers in the market. Again for another year, they had to borrow money which ultimately leads to a debt trap.

Large and medium farmers who have more than 2 more hectares of land have their own savings from farming. They need not borrow capital from moneylenders or traders.