0.5) what do the medium and large farmers do with the surplus from farm production
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Medium and large farmers retain a part of their produce and sell thesurplus in the market. This provides them with the required capital forfarming. Most of them even use these earnings to provide loans to smallfarmers. By charging high rates of interest on these loans, they succeed in furthering their earnings.
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Medium and large farmers retain some amount of surplus for their other requirements and sell the rest in the market, which would give them money to buy the required capital for the next season and also some big farmers use this money to give loans to other poor farmers on high interest rates, thus, further increasing their income.
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