Ruling on giving a farmer a sum of money in exchange for a ton of wheat at the end of the season

Question:
Ali Abbas al-Abdullah, a Syrian national working in the Kingdom, sent a letter containing three questions. In his first question, he says: In our village, there are people who give farmers a sum of 7,000 Syrian pounds at the beginning of the wheat season in exchange for a ton of wheat that they take at the end of the season, after about seven months. It is known that the price of that ton of wheat at the end of the season is 12,000 Syrian pounds. The amount given was 7,000. Is this transaction riba (usury or interest) or not? And what is the halal (lawful) way? Because the farmer needs this money for the expenses of watering the wheat and the like?

Answer:
This method is valid and is a permissible form of dealing. This is from the transaction of salam (a forward sale paid in advance) which the Prophet (peace and blessings be upon him) approved for the people of al-Madinah. When he migrated to al-Madinah, they were making advance payments for fruits for one or two years. So the Prophet (peace and blessings be upon him) said: "Whoever makes an advance payment for something, let him make it for a known measure and a known weight for a known term." He approved their practice. Even if the one to whom the advance is made obtains a benefit due to an increase in the price at the time of delivery, there is no harm in that, and it is not riba.