We are going to post a quick response and then send the question to our Investment Group at Smith Barney so they can prepare a long detailed response. That response should be posted by 1/11/2010.

In addition, we would like to take a moment to reiterate that all numbers and the reasons for the losses were presented to the ASAS membership at the JAM and sectional business meetings.

1. The large sales in equity was done to allow us to change investment firms. In 2007, the ASAS board on the advice of the ASAS Investment Committee opted to leave our old investment firm and move to Smith Barney. The reasons for this move included but were not limited to: a) Smith Barney offered us a fixed rate for management (approximately 1%) which was significantly less than the per transaction amount negotiated with the previous group which was averaging between 4% and 9% per year of the portfolio, b) over several years with the old investment firm our returns performed below the ASAS benchmarks and c) the ASAS investment committee was uncomfortable with the investment portfolio (as it turned out with the crash of the market ... the opinion of the ASAS Investment Committee was extremely insightful).

2. Although the losses were significant, if we had left them in the previous investment portfolio (a large part of the liquidation was done 2 weeks before the crash of the mortgage market which made up a large portion of our investment portfolio) we would have lost more than double the amount that was lost.

3. As copied and pasted from below:

In 2008, the ASAS Investment portfolio took a hit of approximately 17%. It is never fun to have to discuss losses, but this loss was significantly below the losses sustained by the majority of non-profits in the US. The mean decrease in non profit investment portfolios = 31% in 2008.

And finally, I am happy to report the ASAS portfolio in 2009 is set to perform at more than a 10 percent increase on the total and considering that for most of 2009 approximately 40% of our assets were in cash (as we were slowly reinvesting trying to best take advantage of the market) this is an awesome performance.

In the end in 2009, during a year that ASAS launched 4 new membership programs we are set to have an increase in net assets over a $250,000.

If you have further questions, please feel free to contact any of the following:

Meghan Wulster-Radcliffe, Executive Director

Jerry Weigel, Chair of Investment Committee

Mike Looper, Financial Advisor

(Posted by Meghan Wulster-Radcliffe, approved by Jerry Weigel)

In very turbulent times, ASAS is in good financial shape. In 2007, ASAS had investment portfolio earnings of 14.1% and finished with approximately a $102,000 increase in net assets. In 2008, the ASAS Investment portfolio took a hit of 17%. It is never fun to have to discuss losses, but this loss was significantly below the losses sustained by the majority of non-profits in the US. The mean decrease in non profit investment portfolios = 31% in 2008. In 2009, ASAS is on track to finish with at least an 8% gain in their investment portfolio (barring any huge changes in the market) and to have non investment earnings (membership, journal, and other earnings) of over $100,000. In addition, under board mandate ASAS maintains a fund at least equal to 6 months operating expenses and even during the world wide financial issues of 2008 this fund was maintained.

ASAS is committed to improving and creating new member benefits and these have an associated cost, but 6 months operating costs are always maintained in reserve to assure the financial health of ASAS.

In an effort to ensure transparency, the financial status is discussed at each of the ASAS sectional meetings and at the ASAS business meeting at JAM each year.

If you have further questions, please feel free to contact any of the following:

Meghan Wulster-Radcliffe, Executive Director

Jerry Weigel, Chair of Investment Committee

Mike Looper, Financial Advisor

(Posted by Meghan Wulster-Radcliffe, approved by Jerry Weigel)

The global economic crisis has been a major blow to the animal agriculture industries. Our efficiencies in production have put us on a path of major exports of animal agriculture products. These have dramatically declined during the economic meltdown leaving the industries with excess product to move. Fixing this is beyond the scope of the expertise in the animal sciences. Out biggest challenge today is how to maintain or increase our research funding. Our stakeholders are down playing the need for additional research to improve efficiency of production as they are trying to figure out how to move the excess production. FASS has responded by reestablishing a Science Policy presence in Washington, DC to work toward more research, extension and education funding for animal agriculture. This program is just starting to grow and will likely build coalitions with other agricultural groups. A special session on the economic realities of today’s animal agriculture and possible solutions would be a good program addition to the Joint Annual Meeting this coming summer in Denver, CO.

(Posted by Meghan Wulster-Radcliffe, written by Maynard Hogberg)