This research tend to analyze The Potential of Bay’ Al Salam as Islamic Contract as Islamic hedging. The objects of this research are farmers in Bantul, Ponorogo and Trenggalek. Research data obtained by spreading questionnaire to three regency above. Data analysis tools used by researcher are Microsoft excel 2013 and SPSS 15. The result of the research stated that the concept of hedging in Bay’ al Salam is not well practiced yet, the practice of Bay’ al Salam inclined to be avoided by Syariah financial institution. The lack of understanding about Syariah financial institution weakening the practice of the Bay’ al Salam by respondent.