Why do modern farming methods require more capital?
1. Modern farming methods need tractors, harvesting machines and other mechanical tools. To purchase them huge amount of money is required.
2. Modern farming methods need HYV seeds to increase the production. To purchase them huge amount of money is required.
3. The price of chemicals and expenditures are very high.
4. Installing tub wells to irrigate fields is a very costly process.
5. Modern farming also needs skilled workers. To hire the skilled workers, huge amount of capital is required to make their payments.