Trump Doubles Down on Iran Ag Sales Pledge at White House Dinner
Trump touts Iran purchases, E15 victory and farm agenda to ag leaders
President Donald Trump used a White House dinner with agricultural leaders Thursday evening to reinforce one of the most closely watched elements of his administration’s emerging agreement with Iran, telling attendees that Tehran will soon begin purchasing large volumes of U.S. agricultural commodities while also celebrating what he called a major victory for the ethanol industry.
“Iran is having a hard time with food, and we’re going to be taking some of their money,” Trump told the gathering. “We’ll spend it, and we’re going to be buying wheat, soybeans, and corn. A lot of it.” He added that those purchases would begin “starting pretty soon.” Earlier in the evening, Trump described Iran as “a new market” for American farmers, calling it “the lovely country of Iran” and crediting his trade agenda for what he said was a 42% reduction in the agricultural trade deficit so far this year.
The remarks are the latest in a series of increasingly explicit statements by Trump and Vice President JD Vance that unfrozen Iranian assets would be directed toward purchases of U.S. food and medical supplies, creating what the administration says could become a significant new export outlet for American agriculture. Treasury Secretary Scott Bessent has said the initial tranche of funds would be unfrozen in Qatar, with U.S. Treasury officials stationed in Doha to oversee how the money is allocated and “a very large percent of it” directed toward American food and medicine purchases. Trump has separately said the first installment of relief under the memorandum of understanding would include roughly $500 million in American goods.
However, Iranian officials continue to publicly and pointedly reject Washington’s characterization of the arrangement. Iranian Parliament Speaker Mohammad Bagher Ghalibaf — who also leads Iran’s negotiating team — posted on social media Thursday that America’s claim that unfrozen assets will be spent on its agriculture is false, adding that Iran’s only harvest from the relationship is “decades of mistrust” and that the U.S. mainly exports “GMO soybeans, broken promises and trash talks.” Iran’s ambassador in Geneva, Ali Bahreini, separately rejected Vance’s contention that the U.S. and Qatar would dictate how Tehran uses the funds, telling reporters Iran alone decides what to do with its own assets. Central Bank Governor Abdolnaser Hemmati has likewise said there is no obligation under the memorandum of understanding to buy U.S. agricultural inputs, though he noted Iran would not block American purchases if price and quality were competitive. Foreign Ministry spokesman Esmail Baghaei made a similar point, saying any purchases would be driven by commercial terms rather than conditions set by Washington.
That distinction is important for grain markets. While the Trump administration is presenting the proposal as a guaranteed export program, many analysts caution that significant legal, diplomatic and logistical questions remain unresolved. Dr. Joe Glauber, a research fellow emeritus at the International Food Policy Research Institute and former USDA top economist, has noted that Iran’s established suppliers include Brazil, India, Turkey, the European Union, Canada, Australia and Argentina, making a wholesale shift toward U.S. origin unlikely. Richard Nephew, a Columbia University scholar who helped design earlier rounds of Iran sanctions, has also questioned how enforceable any purchase requirement would be in practice, since foreign banks are not obligated to comply even if instructed to route funds toward U.S. soybean purchases.
The ultimate size of any purchases will depend on the final terms governing the release of Iranian assets, Treasury oversight, sanctions implementation and whether Tehran ultimately chooses U.S. suppliers. Iran has periodically bought U.S. wheat and soybeans during previous supply shortages — most notably in 2018, when it purchased $318 million in U.S. soybeans amid the trade-war-driven slump in Chinese demand — but has made no major agricultural purchases from the U.S. since, according to USDA data.
The agricultural pledge is also tied to a broader funding fight on Capitol Hill. The White House this week asked Congress to approve nearly $88 billion in supplemental spending covering costs associated with the Iran conflict, including $11.1 billion earmarked for farmers and a request that lawmakers pass year-round E15 authorization. Congressional Democrats immediately opposed the package. The request came the same week the Senate, in a late-night reversal following a closed-door meeting between Trump and Senate Republicans, rejected a war-powers resolution that would have limited the president’s authority to continue military action against Iran — a vote that came a day after the chamber had approved a similar measure.
Beyond Iran, Trump also highlighted domestic biofuel policy, telling the audience, “I saved your ethanol industry,” while crediting repeated lobbying from Sen. Roger Marshall (R-Kan.). The president pointed to year-round E15 legislation included in the administration’s supplemental funding request, portraying the measure as another major accomplishment for corn growers and ethanol producers. While biofuel groups strongly support permanent nationwide E15 sales, the proposal still faces congressional negotiations, particularly over language affecting small refinery exemptions and Renewable Fuel Standard implementation.
Trump used the same Rose Garden setting to address the broader state of the Iran negotiations, saying the U.S. was dealing from “a position of pure strength” after the military campaign earlier this year and insisting Tehran “will not have a nuclear weapon.” He also said the Strait of Hormuz remains open. That assurance came hours after a Singapore-flagged cargo vessel was struck near Oman in the strait — an incident a U.S. official attributed to Iran — underscoring the fragility of the 60-day truce underpinning both the security and commercial elements of the deal, including the agricultural purchase pledge. The strait carries roughly a fifth of global oil and gas shipments, and any disruption there carries direct implications for energy and fertilizer costs already weighing on farm margins.
The dinner also underscored the administration’s effort to showcase a broad coalition supporting its agricultural agenda. The event, held in the Rose Garden, featured produce from the White House Kitchen Garden and honey from the White House Beehive, and coincided with the opening of the Great American State Fair on the National Mall ahead of the 250th anniversary of independence. Among those attending were USDA Secretary Brooke Rollins, Deputy Agriculture Secretary Stephen Vaden, USDA Chief of Staff Tate Bennett, Health and Human Services Secretary Robert F. Kennedy Jr., Treasury Secretary Scott Bessent, Interior Secretary Doug Burgum, Chief Agricultural Negotiator Julie Callahan, Centers for Medicare and Medicaid Services Administrator Mehmet Oz, and HHS Senior Adviser Calley Means.
Congressional attendees included Senate Ag Committee Chairman John Boozman (R-Ark.), Senate Agriculture Appropriations Subcommittee Chairman John Hoeven (R-N.D.), Sen. Joni Ernst (R-Iowa), Rep. Austin Scott (R-Ga.) and Rep. Celeste Maloy (R-Utah). Iowa Republican gubernatorial candidate Zach Lahn also attended.
The guest list extended beyond elected officials to prominent agricultural leaders, commodity organization representatives, farm-state producers, social media agriculture influencers and administration trade advisers, reflecting the White House’s effort to build support for its broader rural agenda, including trade expansion, biofuels, regulatory reform and increased export opportunities.
For grain markets, Trump’s comments are likely to keep attention focused on whether the administration can convert its diplomatic framework with Iran into actual export sales. Even modest purchases of wheat, corn or soybeans could provide psychological support to markets searching for new sources of demand. Until purchase contracts are announced, however, and given the open pushback from Iran’s own negotiating team, traders are likely to view the proposal as a potentially bullish development rather than a confirmed source of export business — one whose fate is now entangled with the broader stability of the 60-day cease-fire itself.
