What Do Farmers Do With Their Surplus Production?

What does mean surplus?

A surplus describes the amount of an asset or resource that exceeds the portion that’s actively utilized.

A surplus can refer to a host of different items, including income, profits, capital, and goods.

In the context of inventories, a surplus describes products that remain sitting on store shelves, unpurchased..

What do the farmers do with the surplus farm products?

1 Answer. Large and medium farmers sell the surplus farm products. A part of the earnings is saved and kept for buying capital for the next season. Some farmers might also use the savings to buy cattle, trucks or to set up shops.

What is surplus in agricultural production?

When production of agricultural commodities e x c e e d s consumption, stocks will build up. … Such stocks are called surpluses. In the past few years substantial surpluses have accumulated in countries with a highly-developed agriculture.

Which farmers have surplus wheat and are able to sell in the market what do they do with their earnings?

Answer: The large farmers generally sell the surplus farm products and have good earnings. They put most of their earnings or money in their bank accounts and get adequate interest on the same. A part of their earnings is saved and kept to arrange for the working capital for farming in the next season.

How surplus farm product is sold by the farmers?

Answer. Farmers grow crops on their land and the total amount of crops they grow, they keep a required portion for the consumption of their family. The surplus amount is sold by the farmer in the market. This is from where traders buy crops and sell it to shopkeepers in the cities and towns.

How is land distributed amongst the farmers of Palampur explain?

There are 60 families of medium and large farmers who cultivate more than 2 hectares of land. … The Land is distributed to the farmers of village Palampur by 240 families cultivate small plots of land less than 2 hectare in size.

Why small farmers have no surplus produce with them?

Small farmers like Savita and Gobind’s sons have little surplus wheat because their total production is small and from this a substantial share is kept for their own family needs. So it is the medium and large farmers who supply wheat to the market.

What is importance of farming?

When farmers prioritize biodiversity on their land, it benefits the earth. Having more biodiversity results in healthier soil, less erosion, better water conservation, and healthier pollinators. This is all good news for the environment as a whole, making agriculture an important part of the cycle of life.

What is the sale of surplus farm products?

The part of the harvest which is kept for selling is called as surplus farm product and when it is taken to the market for selling it is called as Sale of surplus farm products. Once the farming process gets completed and the crops are harvested, the farmers segregate the obtained share into two parts.

How do farmers use their earnings which they get by selling the surplus produce in the market?

The income generated by farmers by selling surplus agricultural produce goes towards meeting household goods case of rich farmers the surplus generated is used for white goods as well as agricultural equipments and accessories.

How do large farmers Utilise surplus farm products to arrange for?

Large farmers utilizes surplus farm products to arrange capital needed for farming by selling their crops in market and using in capital.

How do farmers arrange capital needed in farming?

How is the required capital in farming arranged? Ans- i) Most small farmers have to borrow money to arrange for the capital. They borrow from large farmers or the village money lenders or the traders who supply various inputs for cultivation. … They are thus, able to arrange for the capital.

How do rich farmers arrange for capital?

(i) The medium and large farmers have their own savings from farming. They are thus able to arrange for the capital needed. … They borrow from large farmers or the village moneylenders or the traders who supply various inputs for cultivation. (iii) The rate of interest on such loans is very high.