What are the difficulties faced by small farmers in arranging capital?

Small farmers often face significant challenges in arranging capital due to limited access to financial institutions, which may view them as high-risk borrowers. They may lack collateral, credit history, or the necessary financial literacy to navigate loan applications. Additionally, high interest rates and stringent repayment terms can deter them from seeking loans, further restricting their ability to invest in essential resources like seeds, equipment, and technology. These barriers can hinder their productivity and overall economic viability.