Pub. 8 2013-2013 Issue 5

January | February 2014 29 Extraordinary Service for Extraordinary Members. All information contained herein has been obtained by MetLife from sources believed to be reliable. The analysis, opinions, forecasts, and predictions contained herein are believed by MetLife to be as accurate as the data and methodologies will permit. However, MetLife makes no representations or warranties, either express or implied, to any persons as to the completeness, accuracy, and reliability of such information, forecast, and/or predictions, and expressly disclaims any liability with respect to any of the foregoing. Nothing contained herein should be construed as a commitment by MetLife or any of its affiliates to enter into any specific financing transaction. For more information, contact Mike Borowski, representing Southern Nebraska, at (402) 525-2757 or mborowski@metlife.com, or Duane Divis, representing Northern Nebraska, at (402) 640-0777 or ddivis@metlife.com. MetLife Agricultural Investments provides an outlet for banks to offer long-term, fixed-rate agricultural real estate loans to their existing and prospective clients. Whether your clients are looking to expand their operations or refinance an existing mortgage, together we can tailor a loan to fit your needs with MetLife as your preferred lender. • Fixed interest rates from 3 to 30 years • MetLife does the underwriting, appraisal, and prepares the loan documentation • Local representative to handle the loan from application to closing Mike Borowski Southern Nebraska Cell: 402.525.2757 Email: mborowski@metlife.com www.metlife.com/ag Turn to Metlife Agricultural Investments for your client’s agricultural real estate loan needs. To see how you can grow your business with MetLife Agricultural Investments, contact Duane Divis Northern Nebraska Cell: 402.640.0777 Email: ddivis@metlife.com MetLife provides an outlet for banks to offer long-term, fixed rate agricultural real estate loans to their existing and prospective clients. Whether your clients are looking to expand their operation or refinance an existing mortgage, together we can tailor a loan to fit their needs with MetLife as your preferred lender. Agricultural Investments Nothing contained herein should be construed as a commitment by MetLife or any of its affiliates to enter into any specific financing transaction. © 2013 METLIFE, INC. PEANUTS © 2013 Peanuts Worldwide sector is expected to take longer to expand again. Changing crop price dynamics indi- cate market uncertainty is still running high, making 2014 acreage intentions difficult to pin down. The latest price ratios suggest corn could lose between 3 and 5million acres to the benefit of soy- beans, and to a lesser extent, cotton and wheat. If this materializes, U.S. corn acreage would drop to between 92 and 94 million acres (from 97 million acres in 2013), while soy- beans would surpass the 80 million acres mark (from 77 mil- lion acres in 2013). Such a shift would significantly alter expected supplies into 2015, eventually putting a floor un- der corn prices and pushing soybean prices lower. How- ever, these forecasts may overstate the magnitude of the acreage shift because of changing dy- namics on the farm expenditure side of the equation as well. For corn, the single largest operating expense is fertilizer. By fall 2013, fertilizer prices already had declined an average of about 20 percent year over year, ranging from bigger declines in nitrogen fertilizers to smaller but still important declines in potashmarkets driven by last summer’s disagreement between two big manu- facturers signaling undisciplined excess production. Overall, such lower farm expenses could go a long way tomitigate the shift away from corn acres in 2014, suggesting larger supplies coupled with larger exports than currently expected by the market. 