For farmers, in theory, a batch of corn will be harvested one day in the future, and the risk should be hedged by purchasing hedging. If in the harvest season, due to the bad weather, many people have failed to harvest corn for several years in a row, which will inevitably lead to an increase in corn futures. Although there is a loss in the spot, the futures market will have corresponding income. If the weather is favorable this year, the price of corn futures will fall, and the spot market price may also decrease.

Either buy weather futures or buy insurance directly. . .