The meeting of the AAEA Foundation Governing Board convened at 3:30 p.m. in the Solitude Room of the Salt Lake City Marriott.

1. President Gary Seevers called the meeting to order, followed by introductions, announcements, and a review of the agenda. The “Statement of Purpose” of the Foundation was distributed to all present. The e-mail addresses for the Foundation listserve were also distributed.

2. The minutes of the November 1997 meeting and the minutes of the April 1998 conference call were approved as printed.

3. Executive Secretary Rueben Buse presented an update on the current financial status of the Foundation. The performance of the portfolio for 1997 shows a gain of $148,000: $64,000 from income, dividends, etc., $64,000 from unrealized capital gains, and the remainder from contributions. This amount represents a 20% investment return on the portfolio for 1997. The 1998 year-to-date shows a gain of $102,000, of which over ˝ comes from unrealized capital gains, for a 12.2% six-month return.

   Buse next reported on the funds available and sources of funds as it relates to their allocation to current projects: International Outreach - $15,600; Student Program - $12,200; Professional Development - $30,380; and other - $11,000. In addition, the Foundation received funds from ADM, Farm Credit System, pass through funds supporting the Annual Meeting, and the AAEA allocation. Total expenditures expected for 1998 would be $112,680 leaving $1,270 unallocated for 1998.

4. Seevers reported that an ag economist from Eastern Europe was identified at a very late date to attend the annual meeting. Seevers recommended funding this visitor up to $700 from unallocated 1998 funds.

   MOTION: Coffey moved to reimburse the visitor $700 from unallocated funds for travel expenses to attend the annual meeting. Doering seconded. Motion carried.

5. Lona Christoffers reported on the status of the Appreciation Clubs. As of June 30, 1998, total cash and pledges in the Appreciation Clubs and Funds is $441,123.14. The Rueben C. Buse Appreciation Club and the D. Gale Johnson Appreciation Club will be chartered at this meeting, bringing the total number of Appreciation Clubs to 19. There was discussion of possible future Appreciation Clubs and how to proceed with encouraging the establishment of new clubs.

6. Seevers reviewed the progress of the Foundation in 1998 in three major areas. 1) Policy Direction: The board expanded its mission to include agricultural economists working in industry and government. Also, five strategic focus areas were identified, including two new ones – technology and industry involvement. 2) Programs and Grants for 1998: The undergraduate section and related activities have become 100% funded for 3 years by earmarked donations. The Foundation allocated the largest single grant ever, $10,000, for an orientation workshop for new professionals. 3) Finance and Fund-raising: A major highlight of the year was the successful effort led by Ralph Christy to obtain substantial multi-year funding of the undergraduate program from Archer Daniel Midlands. The two new Appreciation Clubs plus an Eagle Award for James Graves should make this a record year for donations.

7. Mike Boehlje led a discussion on a capital fund raising campaign. Boehlje suggests that, to ensure the $1,000,000 goal is reached by the year 2000, the following funding source goals be established: Appreciation Clubs - $100,000; and capital campaign with matching opportunities - $100,000 ($50,000 corporate and $50,000 individual). The board members emphasized the need to be proactive when soliciting contributions to the endowment fund and the need to identify target areas in order to be relevant to corporations. Realizing that most giving is relationship driven, board members will be given the responsibility of contacting individuals in corporations. The finance committee will prioritize a list of individuals and, via email, decide who will contact each individual. The suggestion was made to also contact those individuals instrumental in establishing the Foundation for a contribution and for their help as part of the solicitation team. The AAEA office will draft a set of letters to use in the campaign.

8. Seevers announced that a committee made up of Boehlje, Myers, and Neil Conklin will meet during this annual meeting to award the Farm Credit Scholarships for this year.

9. Christoffers reported that the Foundation booth in the exhibit area is again providing attendees the opportunity to check email messages. There are also free copies of the CD-ROM containing the 1992-94 issues of AJAE available at the booth.

10. Seevers reported on the results of the investment review committee’s deliberations regarding the portfolio funds of the Foundation and Association. The committee was composed of Boehlje, Seevers, JB Penn, and Susan Offutt. He further noted that the executive board, subject to approval by the Foundation board, approved the following recommendations.

    1. Both boards use a professional financial manager to advise on the investment of our combined assets.

    2. The boards adopt new asset allocation guidelines once the adviser has been employed.

    3. The boards establish a joint 3-person investment committee made up of the respective heads of their Finance Committees plus the Executive Secretary.

    4. Ask the new adviser to meet with the combined boards on Saturday afternoon during the November meeting.

       MOTION: Seevers moved to accept the recommendations of the Investment Review Committee. Doering seconded. Motion passed.

       MOTION: Seevers moved to select the Vanguard group as the management advisor. Myers seconded. Motion passed.

11. Seevers reported on responses to his letter to organizers of AAEA Appreciation Clubs inquiring into their feelings about the need for more recognition of Appreciation Clubs. The general consensus is that more recognition should be given these Clubs. Immediately following this meeting Seevers will send a letter to all organizers explaining how Appreciation Club money has been used and the types of activities each particular club has funded. Seevers also volunteered to prepare an Annual Report to be distributed to all AAEA members before the November meeting.

12. Myers presented the report of the nominating committee, recommending the following individuals for officers for 1998-99. There were no further nominations from the floor.

    President - Joe Coffey
    Vice-president - Finance - Mike Boehlje
    Vice-president - Programs - E. Jane Luzar

    MOTION: Myers moved to elect the nominated slate of officers for 1998-99. Christy seconded. The vote to elect was unanimous.

13. Coffey reminded the board members of the Foundation breakfast scheduled for Wednesday morning at 7 a.m. and invited each member to visit the Foundation booth in the Salt Palace exhibit area.

14. Coffey encouraged each board member to talk with members to solicit interesting proposals for possible funding. Specifically he asked board members to contact the following groups: COSBAE (Doering), resident instruction (Luzar), and industry (Christ).

15. Seevers asked for comments from outgoing board members Les Myers and Ralph Christy. Patricia Duffy, also retiring from the board, was not able to be present. Claudia Parliament, leaving the board as Executive board representative, was also not present.

16. Coffey announced that the fall joint meeting of the Foundation and Executive Boards would meet Saturday, November 7 and Sunday, November 8, 1998, in Chicago at the O’Hare Airport Marriott. A joint lunch with the student section will begin at 12:00, followed by a meeting with the investment adviser at 2 p.m. The Foundation committees will meet Saturday afternoon, with the formal board meeting starting with a continental breakfast on Sunday at 8 a.m.

The meeting adjourned at 6:00 p.m.

Respectfully submitted,

Rueben C. Buse
Executive Secretary