[confiscate]

one reason, that is not gambling, is insurance

e.g. for farmers, they can predict their harvest 5 months later, but can't know for sure.

They can short their own industry stocks. If the harvest goes good, they have crops to eat. If the harvest goes bad (e.g. forest fire), the short would net them some money.

http://www.theoptionsguide.com/short-hedge.aspx

[mpfundstein]

Futures are provably a better vehicle for that, aren’t they?

[confiscate]

if there is a forest fire and all crops were lost, how would futures help the farmer?

Futures let farmer lock-in a sell price for the crops, but without any crops due to the fire, the sell price wouldn't matter