If farmers are concerned about the price of their future crop changing, they can:
buy futures contracts to lock in a future price for their crop.
plant more seeds today.
plant less today so that the price will be higher in the future.
sell futures contracts to lock in a future price for their crop.
If farmers are concerned about the price of their future crop changing, they can buy futures contracts to lock in a future price for their crop. This allows them to secure a price for their crop ahead of time, providing some financial stability and protection against price fluctuations in the market.
Selling futures contracts is typically done by those who want to hedge against price increases or speculate on price movements, but for farmers looking to lock in a price for their own crop, buying futures contracts is the appropriate action.