What happens to farmer-3 in year 3? Can he continue production? What will he have to do to continue production?
(i) In 3rd year, farmer 3 could not produce wheat anymore in accordance with the trends of the three years.
(ii) Yes, production can be continued by him but it would require additional capital input from the farmer’s end.
(iii) The farmer will have to arrange for working capital by borrowing money from the moneylender, banks or some other source, if he wishes to continue production.