Agricultural prices are usually volatile. That is why the opening of a new fu-tures market in any agricultural commodity may decrease farmers' income un-certainty. However, when price movements are explained by quantity move-ments and both are negatively correlated, there is an implicit insurance on the crop. Oranges are a good example of this phenomenon, due to the great con-centration of their production for European consumption in the Autonomous Region of Valencia. In particular, farmers appear to be located at a point on the demand curve with elasticy equal to one, where income is stable.

Keywords: welfare increase, implicit insurance, futures market, agricultural prices.