Final answer:
Formal sector loans can aid poor farmers by offering lower interest rates, aligning repayment with harvest cycles, and including educational support. Historical programs like the 'Green Sprouts' illustrate the efficacy of such policies. Supporting sustainable agriculture and providing microcredit are also important strategies.
Step-by-step explanation:
Green Sprouts program intervened:
Formal sector loans can become more beneficial for poor farmers and workers by providing lower interest rates, restructuring repayment schedules according to harvest cycles, and including supportive services like agricultural training. Subsidized interest rates can prevent debt spirals and support economic stability among impoverished agricultural communities.
The historical context of farmers during Han times highlights the importance of such support. Farmers were susceptible to a cycle of debt due to borrowing at high interest rates. The Green Sprouts program intervened by offering loans at below-market rates, which helped farmers maintain ownership of their land and improved the fiscal base of the state by ensuring that all could pay their taxes. Encouraging sustainable agricultural practices and investing in the development of crop species capable of thriving in challenging conditions can also support poor farmers