220px ueberladewagen (jha)

Farmers and Futures Markets

By nels2174
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    Farmers and Futures Markets

    How Futures Markets are beneficial to Farmers

  • Preparation

    Preparation
    Farmers spend money planting. This means spending money to buy seed, fertilizer and other supplies.

  • Futures Contract

    Futures Contract
    Farmer negotiates a wheat futures contract with a delivery date corresponding to the wheat harvest

  • Factors

    Factors
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    Factors

    A number of factors including weather, consumer supply and demand, and local, national or global events affect prices.

  • Farmer Sells Crop

    Despite changes in price that may occur between the contract agreement and delivery, the farmer still gets to keep the original agreed upon price in the contract.