I read that futures contracts help farmers but I don't know how they specifically do this.
If I'm a farmer and I sell futures contracts to insure myself against future low prices, do I get money from the futures contract when it matures and this is the insurance or do I get money from the futures in the present when I first sell it to a willing buyer and this money will make provide the insurance against low prices?
Bob Murphy's article "The Social Function of Futures Markets":
http://mises.org/daily/2399
http://www.investopedia.com/university/futures/futures2.asp