Former bond trader Alan Boyce is just the type of California farmer expected to dive into the world’s first water futures contract.

Boyce is comfortable navigating financial tools, and he grows irrigated pistachios, tomatoes, alfalfa and other crops in California’s drought-prone Central Valley. But he says the water contract is still too illiquid to benefit him.

Financial exchange operator CME Group launched the contract late last year to help big California water users such as farmers and utilities hedge rising drought risk and give investors a sense of how scarce water is at any given time. The exchange and a United Nations report said this is the first water futures contract in the world.