Question

how do large farmers utilise surplus farm products to arrange for thecapital needed in farming?

Answer 1

Farmers after harvest keep a part of the produce for domestic consumption and sell the surplus in the nearby market. SSmall farmers have smaller yield and thus after keep the grain for domestic consumption have less surplus to sell at the market. On the other hand, large farmer have larger yield and thus larger surplus. They sell this at the market and use the money from sale as capital in farming.