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What is the WASDE Report and Why is It Important?

by: Chris Zoller, Extension Educator, ANR, Tuscarawas County

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The World Agricultural Supply and Demand Estimates (WASDE) report is prepared monthly by the Interagency Commodity Estimates Committees (ICECs) which are chaired by representatives from the Agricultural Marketing Service, Economic Research Service, Farm Service Agency, and Foreign Agricultural Service.  The National Agricultural Statistics Service provides data about U.S. production and each ICEC (one for each of nine commodities) compiles and analyzes data from U.S. and foreign sources to produce the report.

The WASDE report is prepared under very tight security in a “lock-up” area inside a USDA building.  On the day of the report release, doors in this room are secured, window shades are closed, and telephone and internet communication are blocked!  Analysts attending the meeting must present their credentials to a guard before entering to finalize the report.  The WASDE report is released at 12:00 noon Eastern time, and not a minute sooner.

Who Provides Information?

The Interagency Commodity Estimates Committees described earlier use information from a variety of USDA sources.  The National Agricultural Statistics Service provides data related to U.S. crop and livestock production.  The USDA Foreign Agricultural Service, official data from foreign governments, satellite imagery, and weather data is also provided about foreign crop and livestock production and use.

All of this information is reviewed by ICEC members with broad expertise and perspective.  To arrive at a consensus about the forecasts, the committee considers alternate assessments of domestic and foreign supply and use.

Commodity Balance Sheets

Do you remember back to your introductory economics class?  One of the basic principles taught was supply and demand (see graph below).  Those who develop the WASDE report use information to provide the agricultural industry with a baseline for the supply and demand of given commodities.  If a large supply is anticipated (think of it as a bumper yield), but domestic or foreign demand is not high, the result is lower prices. On the flip side, a poor harvest (lower quantity) combined with increased demand results in increasing commodity prices.  We have seen commodity markets move up or down within minutes of a WASDE report being released.

A balance sheet for the U.S. and world wheat, rice, coarse grains, oilseeds, and cotton is provided.  Coarse grains include corn, barley, sorghum, and oats).  Oilseeds include soybeans, rapeseed, and palm).  The U.S. also reports sugar, meat, poultry, eggs, and milk on the balance sheet.   Separate estimates are provided for components of supply and demand and domestic use is divided into major categories (for example, corn for feed and corn for ethanol use).

Of interest to many is the reported season-average farm price for farm commodities.  Price forecasts are made by experts who carefully analyze the supply and demand sides of the balance sheet, along with commodity models, and in-depth research of domestic and international issues.

Why is the WASDE Important?

Agriculture operates in a global market and supply and demand are constantly changing.  A monthly balance sheet of major commodities provides farmers, industry professionals, and others a current source of information.

Not everyone agrees with every number reported in each WASDE, but everyone should feel confident that a tremendous amount of research and time is invested to provide the most accurate report possible.

Where Can I Read the WASDE Reports?

Current and historical (since 1974) WASDE reports are available here: https://www.usda.gov/oce/commodity/wasde.  These reports are approximately 40 pages in length, but an approximate five-page summary of coarse grains, oilseeds, and cotton is provided at the beginning of the report.  Detailed data tables accompany the report.

Sources:

WASDE FAQs, United States Department of Agriculture, https://www.usda.gov/oce/commodity-markets/wasde/faqs

WASDE Report, United States Department of Agriculture, https://www.usda.gov/oce/commodity/wasde

Annie’s Project Virtual Reunion – Registration Open

Those who have participated in an Annie’s Project understand the camaraderie and friendships that are developed during the course. They also understand the value of education to improve the farm operation. Keeping those two points in mind, the Ohio Women in Ag team is hosting a virtual Annie’s Reunion on May 6 from 9-11 a.m.

The reunion will allow past participants to catch up with each other through virtual breakout rooms and further expand their education through 3 different tracts: Farm Management, Livestock and Food. The opening session will provide resources and inspiration for the unique challenges farms are facing right now. Breakout sessions include grain and livestock market updates, backyard poultry, food prep and preservation and more. Those who have not participated in an Annie’s Project are also invited to attend to learn more!

Registration is open until noon on May 5 at go.osu.edu/AnniesReunion. For questions, please contact Amanda Douridas at Douridas.9@osu.edu.

Annie’s Project Virtual Reunion Slated for May 6, 2020

Those who have participated in an Annie’s Project understand the camaraderie and friendships that are developed during the course. They also understand the value of education to improve the farm operation. Keeping those two points in mind, the Ohio Women in Ag team is hosting a virtual Annie’s Project Reunion on May 6 from 9-11 a.m.

The reunion will allow past participants to catch up with each other through virtual breakout rooms and further expand their education through 3 different tracts: Farm Management, Livestock, and Food. The opening session will provide resources and inspiration for the unique challenges farms are facing right now. Breakout sessions include grain and livestock market updates, backyard poultry, food prep and preservation and more. Those who have not participated in an Annie’s Project are also invited to attend to learn more!

If interested, please save the date and look for registration information next week. For questions, please contact Amanda Douridas at Douridas.9@osu.edu.

Author: Amanda Douridas, Extension Educator

Registration Open for the 7th Annual East Ohio Women in Agriculture Conference

The 7th Annual East Ohio Women in Agriculture Conference will be THURSDAY, March 19 from 9:00 am – 3:45 pm. The event will again be held at R. G. Drage Career Technical Center, 2800 Richville Drive SE, Massillon, OH 44646.

This year’s program will feature 18 break-out sessions presented by OSU Extension educators, farmers, and partner agencies including: Business & Finance; Plants & Animals; Communication; Home & Family; and Special Interest. As always, Ohio FFA state officers will be teaching one of the communication sessions open to all participants.

Farm and Dairy Editor, Rebecca Miller is the conference featured keynote speaker. Her presentation will engage and enlighten participants on “Clinging to context in a noisy world: don’t lose sight of your “why”. We can’t wait to see you there!

Cost of the conference is $55 for adult participants and $30 for students.  Conference fee includes conference participation, continental breakfast, lunch and conference handouts.   Deadline for registration is Thursday, March 12.  Register online at go.osu.edu/eowia2020 or complete and mail this East Ohio Women in Agriculture Conference Flyer – 2020 .

Women in Ag Dinner: Managing Agriculture’s Topsy-Turvy Ride

Ohio State University Extension Coshocton County will host a Women in Agriculture Dinner on Tuesday, August 6 from 6:00-8:00 PM at Raven’s Glenn Winery (56183 Co Rd 143, West Lafayette). Interested participants are invited to join other area women for an evening of learning, networking, idea sharing and a delicious meal. The theme for the evening will be “Managing Agriculture’s Topsy-Turvy Ride.” Program participants will learn about the current influences on agriculture markets, tools for decision making, and strategies to cope with the stresses of agricultural life. The cost to register is $20, which includes the meal and program. To register please mail in the Women in Ag Dinner 2019 Registration Flyer or visit the Coshocton County Extension Office. Please register by August 2. Contact David Marrison (marrison.2@osu.edu) or Emily Marrison (marrison.12@osu.edu) at 740-622-2265 with any questions.