Which of the following will encourage capital intensive farming
Answer Details
The provision of subsidies on equipment is likely to encourage capital-intensive farming. This is because capital-intensive farming requires a significant amount of investment in equipment such as tractors, harvesters, irrigation systems, and other machinery to increase efficiency and productivity. Subsidies can help reduce the cost of purchasing this equipment, making it more affordable for farmers to adopt capital-intensive farming practices.
Communal systems of land ownership, policies that encourage rural-urban migration, and restrictive lending policies by banks are unlikely to encourage capital-intensive farming. Communal systems of land ownership may not provide individual farmers with the necessary incentive to invest in expensive equipment, as land may be owned collectively and not by individual farmers. Policies that encourage rural-urban migration may lead to a decline in the number of people engaged in agriculture, which could reduce the overall level of investment in farming equipment. Restrictive lending policies by banks may limit the ability of farmers to access the necessary capital to invest in equipment, thus making capital-intensive farming less attractive.