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The farmers are poor because the economic activity that they are in has been under-funded. The absence of sufficient working capital curtails their output and further demonstrates the inability of the government to even liberalize the loan policies of its financial institutions.
A number of studies have been conducted pointing to the availability of credit facilities as one of the vital factors influencing farm production output. Among these studies, as cited by Minoza (12-13), are those of Kimpo (1962) and Lu (1973). Moreover, in a study of farming in Argentina, small-scale farmers appeared as marginal operators due to their limited farm holdings and scarce capital...
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