On Monday, the U.S. Department of Agriculture (USDA) announced it would "make $8 billion available for one-time payments to American farmers this harvest season to provide relief during temporary market disruptions and increased input costs."

Using a formula derived from the USDA's production, yield, and price estimates, the Harvest Fuel Relief program will "provide simple, proportional support to producers." It will only cover a "portion of modeled losses during the 2026 crop year." The Farm Service Agency—an office within the USDA that administers credit and loan programs—will administer the $8 billion in one-time payments using funds from the Commodity Credit Corporation, a federal entity authorized to draw up to $30 billion from the U.S. Treasury to fund agricultural initiatives. Payment rates won't be released until November, and the USDA's notice leaves open the possibility of additional payments for "non-Title I commodities, including specialty crop growers and fishermen."

A fiscally questionable decision, the program comes at a time when farmers are feeling a significant price pinch. The dyed diesel American farmers and ranchers use is exempt from state and federal highway taxes, but that has done little to offset skyrocketing fuel prices. In September, the American Farm Bureau Federation projected that fuel expenses would reach $22 billion this year, up 29 percent from 2025. The Farm Bureau estimates that total production expenses will reach nearly $500 billion in 2026. According to its own predictions, the USDA doesn't expect the situation to improve anytime soon.

In its latest Commodity Costs and Returns report, released in June, the USDA projects farmers and ranchers will face record production costs in 2027—higher than during the COVID-19 supply chain disruptions—driven by higher prices for necessary inputs such as fuel, fertilizer, seeds, machinery, and labor. 

While the USDA has blamed "temporary market disruptions" for these cost hikes, the blame more accurately falls to President Donald Trump, thanks to his illegal war in Iran. As of Tuesday, Trump's war—and the subsequent shocks it has caused to the global diesel supply—have pushed the national average price in the U.S. up $2.70 per gallon from a year ago, a 74.6 percent increase, according to AAA data.

Unfortunately, the war in Iran is just one of several Trump administration policies making life more expensive for everyone, including the nation's farmers and ranchers. Tariffs on imported fertilizer, which began in 2020 during the first Trump administration, have made it difficult for American farmers to afford what they need. By the Farm Bureau's estimates, fertilizer costs for 2026 are projected to reach a record $40 billion, up 15 percent from the previous year.

The $8 billion program is part of a windfall of taxpayer money the Trump administration has sent to farmers as relief for harms caused by the president's actions. Last December, the USDA sent $11 billion in one-time bridge payments to more than half a million farmers nationwide. Earlier this month, the USDA announced it would provide a record $13.8 billion in gross payments to agricultural producers to cover revenue losses. 

In a speech in Kansas touting the program, Trump claimed that the state's residents would see a "plunge" in prices once the war ends. That's likely an exaggeration, given the host of questionable economic policies he seems hell-bent on implementing. 

Still, that shouldn't discredit the president's suggestion. Ending the war would benefit farmers, ranchers, and consumers, without doling out billions in another government bailout for a favored industry.

The post Trump's $8 Billion Diesel Bailout Pays Farmers for a Problem He Created appeared first on Reason Magazine.

On October 14, tens of thousands of Colombians took to the streets to protest against the government of far-right leader Abelardo de la Espriella, who has been in office for just two months.

The protests demonstrated the opposition’s clear ability to mobilize its base and fill the streets of several Colombian cities, even though the new government is still in its early days.

Protesters – including members of labor unions, Indigenous organizations, opposition parties, and students – marched through the streets of the capital, Bogotá, as well as other major cities across the country, such as Cali, Medellín, Bucaramanga, Riohacha, and Pereira.

In an address to the nation, De la Espriella stated that 98% of the protests were peaceful, though he also warned the demonstrators: “From the very first day of my administration, I have issued a directive that leaves no room for interpretation: peaceful protest is respected, protected, and guaranteed. But violence, vandalism, and any attempt to violate the rights of others will have no place under my administration.”

He also added: “Here there is a state, here there is authority, and here there is a government that respects freedoms, enforces the law, and protects the millions of Colombians who get up early every day to work and build our nation.”

Criticism

The main criticisms leveled against the government focused on the executive branch’s neoliberal agenda and its security policy. According to the protesters, De la Espriella is failing to address the difficult labor, educational, economic, and territorial conditions faced by Colombians; on the contrary, his political agenda is making these circumstances worse.

Specifically, the protesters complained about cuts and adjustments to the budgets of public institutions, the lack of greater public investment in education, and the fear among several indigenous organizations that the government’s new measures will prevent them from freely exercising their right to protest.

In fact, one of the main catalysts for the protests has been the signing of a presidential decree that empowers state agents to intervene more directly against protesters – a move that has been criticized, according to the protesters, for its anti-democratic intent.

On this point, social organizations, such as the Cauca Regional Indigenous Council assert that, fearing a popular backlash like the one Iván Duque faced (which turned into what some called a “rebellion” by young people that lasted several weeks in 2021), De la Espriella signed Decree 1525, which modifies law enforcement protocols to give state forces greater leeway when dealing with protesters.

Among other measures, law enforcement can now take direct action in response to protests without the need for exhaustive dialogue, as previously required by the regulation. Several human rights organizations have expressed concern about the decree, stating that it could increase the risk of abuses and reduce mediation as the primary course of action, which already was barely used. During the 2021 national strike in Colombia, 46 people were killed in the context of the heavy police repression of the strike.

One of the people attending the demonstrations last week was former President Gustavo Petro, who optimistically stated that the protests reflect a popular response to the executive branch’s decisions: “The people can organize themselves, and two months into the start of a tyrannical and imposed government, this is the best wake-up call. The time has come for a Latin American day of popular mobilization.”

Petro, who has just resumed leadership of the Pacto Histórico – a coalition of movements that supported his political project – also said: “This is how we respond to adversity with dignity, with the determination to win again, without fear. Life is our companion, not death. The people won’t give up, damn it.”

On Monday, a group of students from the University of Chicago stood outside the Chicago Mercantile Exchange—one of the world's largest and most diverse derivatives marketplaces—and called for the repeal of an obscure 1958 law that bans onions as futures products traded on U.S. exchanges. 

Attracting an audience with a humorous jingle and amusing signs that included "Onions Deserve a Future," "Honk If You Want Free Onions," "Hot Girls Hedge Onions," and "Free Markets Feed Families," the student group, named For Our Futures, has a simple platform: a repeal of the 1958 Onion Futures Act, which prohibits anyone from trading in onion futures on commodity exchanges. (The law was amended in 2010 to ban motion picture box office receipts from being traded on commodity exchanges.) The viral campaign drew enough attention that Mike Selig—chairman of the Commodity Futures Trading Commission and a proponent of expanding the list of commodities traded on futures markets—was asked about the law in a media appearance. 

American farmers produce about 6.75 billion pounds of onions a year, according to the National Onion Association, an industry trade group. While peers who grow cotton, wheat, corn, and soybeans can hedge against price swings by trading futures contracts, onion farmers have no such recourse under federal law. But, as the Agriculture Department's daily National Potato and Onion Report shows, onion prices are highly volatile and subject to wild swings, making them an ideal market for futures trading. 

In its latest report, released Monday, the agency shows that onion prices have roughly doubled since this time last year. If onion futures contracts were legal, farmers could rely on market expectations instead of planting crops based on last year's prices. It would also let buyers potentially cut costs by locking in lower prices to protect against spikes. Trading onion futures contracts would give the industry a useful price-discovery tool, one that the student group aptly notes is "crucial for price stability and for hedging risks associated with weather and market fluctuations."

It's not For Our Futures' first time trying this gambit. The student group staged similar protests at college campuses in April and May, armed with bags of raw onions to entice passersby into signing their petition to legalize onion futures. The students' crusade might be comical, but after a recent Gallup poll found that 57 percent of Americans age 18–34 have a positive image of socialism, it's encouraging to see college-age students stand up for free markets.

A protest over onions sounds absurd, but it's a viral reminder to others in that age cohort of how far governments can go when given the slightest leeway to regulate an industry.

Instead of relying on outdated price points when planning future harvests, American onion producers could use resources like futures contracts that offer real-time market signals. All that would require—as the college kids state—is for federal lawmakers to "let the free market reign supreme."

The post You Can Trade Contracts on Elections, but Not on Onions. These College Students Want To Fix That. appeared first on Reason Magazine.

As SpaceX impacts Ukraine and AI-generated music divides artists and fans, critics are asking what happens when technology has too much control over our lives

• This was originally published in TechScape, a newsletter about how technology shapes our lives. Sign up to receive it here

Hello, and welcome to TechScape. I’m Blake Montgomery, US tech editor at the Guardian, writing to you while sitting in front of Roy Lichtenstein’s monumental Drowning Girl, on view in New York City. Today in tech, we’re discussing the perils of Elon Musk’s one-man global infrastructure, AI-generated music and a Guardian AI conference in Paris.

The Ukrainian leader says talks with US envoys covered security guarantees and he hopes to hear Russia’s response tomorrow

Nordic correspondent

As well as Steve Witkoff, Ukrainian president Volodymyr Zelenskyy will also meet the Norwegian prime minister, Jonas Gahr Støre and the Finnish president Alexander Stubb and Norway’s new King Haakon during his visit to Oslo.

Donald Trump loves to put his name on things, and when it comes to the recent burst of inflation, it’s totally deserved. Trump and Republican politicians are doing their best to try to make a simple story complicated. But there is no doubt that Trump is the lead and almost sole author of the inflation […]

The post Trumpflation is here and it’s all Trump’s doing appeared first on Asia Times.

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