What do medium and large farmers do with thier earnings from the surplus farm prodice
Answers
First of all you should know what is surplus production well, it is the excess production which are produced by the farmer itself.
It is the extra production that is produced from the organisation.
Now your question is what these farmers do with this excess production. These farmers sell this extra production to the market and hence on certain amount of profit from other organisations.
Few of them use this production which are excess for another production in a different organisation.
The large and the medium farmers do the following things with theur earnings which they get from their surpllus farm produce: 1.They lend it to the small farmers who require loans to buy the equipment necessary for their farm production.
Medium and large farmers sale the surplus farm products and buy pump motor for better irrigation purposes with those amount of money as well as Tractors for better cultivation.. Whereas large scale farmers sell the surplus in the market. To get money. Which is used for the next crop.
The various ways in which savings are used by the large farmers and middle farmers are as under: They invest their saving in modernising their agricultural means of production. They lend the sum to the small farmers to get more interest on the amount. They invest the amount in purchasing new property.