OMAHA (DTN) -- American farmers could see commodity sales to Iran under the negotiations going on between the U.S., Iran and mediators that just wrapped up in Switzerland.
In a press conference Monday in Switzerland, Vice President JD Vance pitched the idea that the Trump administration wants unfrozen Iranian funds to go to buy U.S. agricultural products such as soybeans, wheat and corn. Vance credited Trump's son-in-law Jared Kushner for the proposal.
"Jared Kushner actually came up with a very interesting solution with the Qataris, where basically -- if there is any frozen Iranian assets that are unfrozen, then we have approval over that process, the Qataris have approval over that process, and then the money would actually go to buy American soy, American corn and American wheat for the benefit of the Iranian people," Vance said.
Iran has billions of frozen assets globally, including $6 billion held in Qatar, the Wall Street Journal reported. Qatar could allow Iran to use those funds to buy food and medicine.
Vance added, "If Iranian assets are ever unfrozen, they are going to make American farmers richer and help feed the Iranian people. That's a very, very good, and very classic Trump deal."
The U.S., Iran and countries operating as mediators wrapped up what was considered the first round of talks between the two countries since President Donald Trump agreed earlier this month to negotiate a peace agreement with Iran within 60 days.
Vance told reporters that a lot of progress was made in the first round of talks despite what appeared to be constant social media posts and public comments over the weekend that threatened to blow up the deal.
In a major move Monday, the Treasury Department also temporarily lifted sanctions and agreed to issue a license to allow Iran to sell petroleum products for at least the next 60 days. Treasury Secretary Scott Bessent posted that announcement on social media. That decision helped quickly bring crude oil prices down to $75 a barrel, a price level not seen since the war began in early March.
FEW US AG SALES TO IRAN IN RECENT PAST
Not surprisingly, the U.S. over at least the past quarter-century has sold little in terms of agricultural products to Iran. The height of agricultural trade optimism with Iran would have been 2008 when the U.S. sold nearly $593 million in agricultural commodities to Iran, according to USDA data.
In 2018, Iran bought $318 million in U.S. soybeans, which also coincided with the height of the trade war with China that had suppressed soybean prices and exports. Iran really has not made any major agricultural commodity purchases from the U.S. since then, according to USDA data.
Currently most of the attention for agriculture is focused on the reopening of the Strait of Hormuz, which Vance said is now open, despite conflicting barbs over the weekend between Iranian officials and President Trump. The closure of the strait throughout the war has become a critical choke point for not only petroleum products but also fertilizer products as well.
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