This Thanksgiving, most farmers around my hometown in central Minnesota are celebrating a good harvest. Rain–for once–fell at the right time in the right amounts, and prices for many crops grown in Litchfield are high.

After yo-yoing up and down for the past several years, corn prices are particularly high. In mid-October, the national average was $4.78 per bushel, up $1.17 from the year before. Corn-Belt families still have to cover the costs of expensive fertilizer and other inputs, but many will be able to enjoy a more bountiful holiday this year.

In the long term, however, such drastic price swings are as bad for farmers as they are for consumers. How do you plan for the future? If farmers make plans now to plant more corn next year, the price bubble may pop before they can sell their crops.

Food Pyramid SchemeOne reason agricultural commodity prices have been so volatile is the rampant gambling in the futures markets. These markets were originally created to help ensure more stable prices for the actual producers of corn, wheat, milk, and other commodities, as well as food manufacturers, like flour mills and cereal makers.

A farmer-owned grain elevator, for example, can use a futures contract like insurance to fix a price for a future sale. This allows them to plan ahead without having to worry about wild price swings.