2005 annual report - The Samuel Roberts Noble Foundation
Transcription
2005 annual report - The Samuel Roberts Noble Foundation
2005 ANNUAL REPORT “THE OBLIGATION THAT RESTS SQUARELY ON THE SHOULDERS OF EACH GENERATION IS NOT WHAT THEY INHERIT, WHAT THEY HAVE HANDED TO THEM OR WHAT THEY ACQUIRE FROM THE STANDPOINT OF WEALTH OR POSITION, BUT WHAT THEY DO WITH THE WEALTH OR POWER THAT THEY HAVE IN THEIR HANDS.” -Lloyd Noble, 1943 14 2 Table of Contents 30 38 4. 6. 14. 22. 30. 38. 40. 50. 53. 54. 56. 58. 59. A Message From the President Noble Foundation History Agricultural Division Plant Biology Division Forage Improvement Division Nonresident Fellows Granting Report Financial Report Corporate Governance Management Board of Trustees Feature Photo Captions General Information Table of Contents 3 A MESSAGE FROM THE PRESIDENT While devoting considerable and healthy discussion last year to strategic planning and identifying key issues affecting our operations, we set aside time in 2005 to celebrate a milestone event — the 60th anniversary of The Samuel Roberts Noble Foundation. We have used this past year to reflect on our institution, its history and its purpose. Our history and our charitable purpose begin with our founder, Lloyd Noble. Mr. Noble was a man who respected the land and the people who cared for it; a man grateful to a society that had given him the opportunity to succeed; and a man of true vision with a desire to benefit mankind. The early Noble Foundation educated and encouraged area farmers and ranchers to practice land stewardship and resource conservation not only for their benefit, but also for future generations. We continue to enhance agriculture through the programs of our operating divisions — Agricultural, Plant Biology and Forage Improvement. The impact of our work is no longer limited to a few local counties in 4 A Message From the President southern Oklahoma as in the late 1940s. Our work today has worldwide implications. In this report, we will share with you several brief stories that are representative of the significant activities of our operating divisions. I hope you will take the time to read about our efforts to improve alfalfa to make it the “perfect” forage for livestock and dairy operations worldwide, to develop valuable forage alternatives for regional agricultural producers and to implement a livestock management system to improve quality and traceability of beef entering the marketplace. These programs are each important and will have a lasting impact not only on producers but, ultimately, on consumers. As a businessman, Mr. Noble expected his companies to be the best, to take advantage of technology and to maintain an undeniable reputation for quality and excellence which begins and ends with people. After six decades, the people of the Noble Foundation continue to embrace that same expectation. Despite the externally recognized success of many of our programs, we will not be satisfied with merely maintaining these activities. New laboratories, scientists and agricultural specialists are being added in 2006 that complement our existing programs and will make important new contributions. These additions will make the Noble Foundation a stronger center for the enhancement of agriculture. Today, we also continue our grantmaking program, which began with a gift to the University of Oklahoma in 1946. Our Board of Trustees remains committed to Mr. Noble’s goal to benefit mankind through both its support of our operating divisions and a granting program to benefit many charitable organizations and programs. We have included a story in this report regarding our support of the construction of the new facility for the Oklahoma Historical Society, which is the repository for many items memorializing the rich history and legacy of the State of Oklahoma. During the past year, I was asked on many occasions to comment on the activities and accomplishments of the Noble Foundation over the past 60 years. While certainly appropriate, such a list alone overlooks much of what is to be recognized and celebrated. Rather than institutional achievements, we feel that recognition is better directed to the following recipients: • Our founder, Lloyd Noble. We celebrate the vision and the charitable spirit of a man who wanted to do something to benefit his fellow man. Mr. Noble, at the young age of 48, established the Noble Foundation and at his death, only five years later, bequeathed the resources necessary to implement his vision for the future. • Lloyd Noble’s family and their commitment, stewardship and leadership in pursuing Mr. Noble’s vision. It is his family that has provided and continues to provide critical leadership to this institution. There exist many examples of family foundations that have looked elsewhere for direction and institutional purpose; such is not the case for the Noble Foundation. Since Mr. Noble’s death in 1950, his family has remained truly dedicated to his vision. • The dedicated, hardworking men and women who have served and are serving as employees and trustees of the Noble Foundation. A true atmosphere of organizational excellence and commitment can be mandated but without more, it will fail. To succeed, an organization requires people who believe in it and care to make it better. The Noble Foundation has benefited from such people for multiple generations. Organizations are often too focused on what might happen tomorrow to think about where they came from and what shaped them yesterday. We are no different; however, our 60th anniversary provided an opportunity for us to look back, to recognize what is important and to honor a man and his family for their continued contributions to society. While we are very excited about the future, in 2005 we paused to celebrate the past. Sincerely, Michael A. Cawley President and Chief Executive Officer “BEING NATURALLY INTERESTED IN THE SOIL, BECAUSE OF OUR BACKGROUND, WE SAID, ‘HERE IS WHERE WE START.’ WE DETERMINED TO SET UP A LABORATORY, NOT ONLY TO STUDY, BUT TO DO RESEARCH, WHICH WOULD REFLECT THE THINGS THAT HAPPENED AS A RESULT OF SOIL TREATMENT THROUGH ANALYZING THE CHEMISTRY OF THE RETURNING PLANT ITSELF. WE ALSO VISUALIZED SOME PURE RESEARCH IN THIS FIELD, AS TIME PERMITS.” -Lloyd Noble, 1948 NOBLE FOUNDATION HISTORY Inspired by the opportunities and challenges offered by a growing Oklahoma oil industry, Lloyd Noble, at age 24, borrowed $15,000 from his mother to buy his first drilling rig. From this early beginning in 1921, Noble became one of the most successful and respected on-shore drilling contractors in the United States. Noble said on many occasions he was grateful for the privilege of living in a country where entrepreneurship and free enterprise were encouraged. Because of this, he had a strong commitment to give back to the society that afforded him opportunities for personal and financial success. This commitment resulted in Noble creating and endowing The Samuel Roberts Noble Foundation, Inc., in 1945. The foundation was named for his father, Samuel Roberts Noble, a pioneer merchant from whom Noble had learned the value of charity. Noble saw land as essential to the future successes of the United States. He understood that the land would continue to be needed — long after the oil and gas were removed — to provide food for an increasing population. However, throughout his life, Noble witnessed regional farming practices that were often short-sighted, disregarded conservation practices and compromised the productivity of the land. Initially, the Noble Foundation focused on educating and encouraging area farmers and ranchers to practice land stewardship and resource conservation. Its early services included soil testing, and its early programs involved contests for cropland improvement and the establishment of productive pastures and demonstration farms to illustrate innovative practices. In addition to these educational activities, the Noble Foundation began making grants to nonprofit, charitable organizations in 1946. Noble died unexpectedly in 1950 at age 53. He left the majority of his estate to the Noble Foundation. of the Foundation’s role in bettering mankind through agriculture enhancement and education, research and grant making. Today, the Noble Foundation is a world-renowned plant research institute, a regional leader in production agriculture innovation and education and a grant maker that supports a variety of charitable projects. More than 300 employees, representing more than 15 countries, staff its operating divisions and their supporting groups. Seventy of these employees hold doctorate-level degrees. The following are some significant events and achievements from the Noble Foundation’s past six decades. For 60 years, the Foundation’s Board of Trustees, the majority of whom are Noble descendants or their spouses, has proudly carried on Lloyd Noble’s spirit of philanthropy. In pursuing this endeavor and stewarding his resources, the Board has remained loyal to Noble’s vision Noble Foundation History 7 1951 1952 1946 1945 Lloyd Noble establishes The Samuel Roberts Noble Foundation on September 19. 1946 The Noble Foundation begins a soil testing lab and offers fertilizer recommendations to area farmers. A three-year soil and garden contest featuring $15,000 in cash prizes is established to create immediate and widespread interest in the Noble Foundation’s work. 1951 Oklahoma State University partners with the Noble Foundation to assist in the management of Noble’s agricultural operations. Through 1958, operations expand beyond soil conservation and improvement to include beef and dairy cattle production, growing field and horticulture crops, cropping systems, irrigation and crop marketing. Operations focus on field demonstrations. The first research farms are purchased; today, the Foundation operates more than 12,000 acres of research property in six different locations. 1952 The Laboratory Section, which is renamed the Biomedical Division in 1955, is formed. Over its life, this division conducts significant research in cancer, nutrition, tissue culture and aging. The first grant is made to the University of Oklahoma — $14,000 for an electron microscope. 1945 1946 1947 1948 1949 1950 1951 1952 1953 1954 1958 1962 1956 1956 The Foundation publicly releases Elbon (“Noble” spelled backward) winter rye, the first of many significant forage varieties publicly released to benefit farmers and ranchers in the southern Great Plains. 1958 1962 The Agricultural Division initiates the team consultation approach, which continues today. Consulting begins in Carter County, Okla., and seven surrounding counties and involves three farms in each county. The Biomedical Division begins expanding its research programs and adding staff. 1964 The Agricultural Division expands its services, beginning localized consultation and group educational activities in distant locations, including Texarkana, Texas, (1964) and Clovis, New Mexico (1969). Starting this year and continuing through 1958, the Biomedical Division publishes several benchmark papers on the nutritional needs of cancer cells. 1955 1956 1957 1958 1959 1960 1961 1962 1963 1964 1969 1966 1965 1965 The Biomedical Division begins work on what will become the L-asparaginase treatment for acute lymphocytic leukemia; that research continues through 1969. This work combines the division’s three primary research areas: tissue culture, the study of normal cells that become cancerous and the study of disease-fighting mechanisms in whole animals. 1969 1966 At his death in 1950, Lloyd Noble transferred his ownership in Noble Drilling Corp. (now Noble Corporation) and Samedan Oil Corp. (now Noble Energy, Inc.) to the Noble Foundation. The U.S. Congress passes the Tax Reform Act of 1969, which requires the Noble Foundation to reduce its ownership in these companies. The Noble Foundation creates Noble Affiliates, Inc., a publicly traded holding company of Noble Drilling and Samedan, in 1972 and reduces its ownership interests. The Agricultural Division publicly releases Bonel rye. TIME magazine lists the L-asparaginase treatment for acute lymphocytic leukemia as one of its top 10 medical stories of the decade. 1965 1966 1967 1968 1969 1970 1971 1972 1973 1974 1977 1975 1976 1975 The Agricultural Division publicly releases Maton rye. 1975 1976 1977 1976 Biomedical Division researchers discover that interleukin1, a naturally occurring protein, enhances the body’s defense mechanisms when the body is put under stress. These findings ultimately lead to the development of interleukin-2, which remains a viable treatment for certain types of cancer. 1978 1979 1980 1981 1977 As part of its granting activities, the Board of Trustees funds biomedical research at The Salk Institute for Biological Studies in La Jolla, Calif., the institution founded by Dr. Jonas Salk. In 1982, The Salk Institute requests that Noble’s funding be used to support its then-new plant biology research program. This interaction ultimately leads to molecular plant research at the Noble Foundation. 1982 1983 1984 1992 1988 1993 1988 The Plant Biology Division is created. Its mission is to conduct basic research for improving plant performance, quality and utility. 1992 1993 The operations of the Biomedical Division are transferred to the Oklahoma Medical Research Foundation in Oklahoma City. The Plant Biology Division conducts the first field tests of genetically engineered crops in Oklahoma. The Agricultural Division publicly releases Oklon rye. The Agricultural Division publicly releases the only known forage-quality crabgrass variety, Red River. 1985 1986 1987 The Agricultural Division adopts a defined consultation service area extending 100 radial miles from Ardmore that includes 47 counties — 29 in Oklahoma and 18 in Texas. 1988 1989 1990 1991 1992 1993 1994 2001 2000 1997 1995 2001 The Agricultural Division publicly releases Bates rye. 1997 The Forage Biotechnology Group, renamed the Forage Improvement Division in 2004, is formed. Its mission is to develop improved forages for the southern Great Plains and advance the science of forages. 2000 The Sam Noble Oklahoma Museum of Natural History opens at the University of Oklahoma. Named after the eldest son of Lloyd Noble, it is the largest museum in the world affiliated with a public university. The Noble Board of Trustees granted $7.5 million to this important project. 1995 1996 1997 1998 The Board of Trustees approves a long-range, $100 million expansion plan for the Noble Foundation campus. When complete, the campus will comprise about 500,000 square feet of research and administrative space. As a consequence of the Plant Biology Division’s significant work in legume genomics, the Board of Trustees commits $5 million for the DNA sequencing of the legume Medicago truncatula, a research model for crops such as alfalfa, peanut and soybean. M. truncatula will be the first legume sequenced. 1999 2000 2001 2004 Noble Foundation and Grasslanz Technology/AgResearch Ltd. (New Zealand) enter a long-term collaboration to develop forage technology to improve animal health and productivity and forage performance. 2005 Plant Biology scientists solve the first crystal structure of a plant glycosyltransferase enzyme, enabling the rational design of new catalysts for producing plant natural products to benefit animal and human health. 2002 2003 2004 2005 AGRICULTURAL DIVISION DIVISION OVERVIEW The Noble Foundation began offering limited soil testing services and advice to farmers and ranchers in a twocounty area in southern Oklahoma in 1945. This group, which would ultimately become the Agricultural Division, conducted research, demonstration agriculture and consultation services at different times during its history. Today, the Agricultural Division assists regional agricultural producers — farmers and ranchers — and other stewards of natural resources in achieving their financial, production and quality-of-life goals through consultation, education, research and demonstration. Consultation is the division’s primary focus. The division has four teams, with each team comprised of specialists in forage, livestock, soils and crops, agricultural economics, horticulture and wildlife and fisheries. Team members — collaborating across disciplines — work together to tailor advice to address each client’s unique circumstances, which commonly include the specific land being managed, the skill set of the producer or land manager and the specific goals to be achieved. Importantly, these services are provided at no cost to the recipients. The division serves a 47-county area within a 100-mile radius of the Noble Foundation’s headquarters in Ardmore, Oklahoma. This service area includes counties in both Oklahoma and Texas. Forage-based cattle operations are the predominant enterprise in this area. Specifically, more than 2.8 million head of cattle are maintained within this service area. In addition to the division’s involvement in improving and advancing livestock operations, Noble Foundation agricultural specialists advise on crop production, range management, horticulture and development and management of wildlife interests and enterprises. The economic impact of the division’s annual recommendations to farmers and ranchers is estimated at more than $15 million. The division operates six farms — totaling about 12,000 acres — for demonstration and research projects. These farms allow the division to regularly conduct field days and farm tours to teach farmers and ranchers about new techniques, management processes and production examples. Research projects are designed to answer or offer alternatives to challenges encountered in produc- tion agriculture. The farms provide needed soil and environmental diversity for the research conducted by all the Noble Foundation’s divisions. The Agricultural Division also conducts a variety of educational events. These events not only reach out to producers, but also serve to offer specialized, agriculture-related education to high school, college and post-graduate students, public educators and the general public. The division’s specialists and researchers collaborate with colleagues at Texas A&M University, Mississippi State University, Oklahoma State University, Oklahoma and Texas Cooperative Extension Services and the Natural Resources Conservation Service. The Agricultural Division is led by Wadell Altom. Agricultural Division 15 AGRICULTURAL DIVISION – THE ULTIMATE CONSULTATION PROGRAM: INTEGRATED BEEF PRODUCTION SYSTEM When the Agricultural Division initiated team consultation in 1958, it began a tradition of offering farmers and ranchers comprehensive advice by combining the knowledge and skills of experts in several different agricultural disciplines. In 2005, the division’s specialists in forages, livestock, economics, soil and crops, wildlife and fisheries and horticulture continue to work in teams to address the needs of cooperating producers in a 100mile radius of Ardmore. With about 2.8 million head of cattle within this service area, it is no surprise the Agricultural Division focused on beef production when it developed a new, intense management program for its cooperating producers. The program, called Integrated Beef Production System — BPS for short — was initiated to improve the quality of beef produced in this region, enhance source traceability of program cattle (which ultimately concerns matters of food security) and provide regional producers with new marketing opportunities with the goal of greater financial returns. Cooperators who are invited to participate in BPS become part of an integrated system for producing source-, process- and performance-verified cattle. “The primary objective of BPS is to leverage the Ag Division’s multi-disciplinary consultation efforts for the long-term benefit of participating cooperators,” says Wadell Altom, Agricultural Division director. “While fundamentally consistent with our normal consultation program, BPS intensifies the tools we provide and the information and participation we require.” • pursue viable marketing options; and • provide requested operational information annually to Noble specialists for assessment of participant-specific results and the evaluation of the program as a whole. In return for this commitment, Noble specialists provide dedicated support to BPS participants to assist them in the program’s implementation and help maximize their returns. In addition to increased access and their on-site participation, Noble specialists spend time reviewing data and developing timely reports to aid participants in making critical production decisions. Noble also provides participants progressive marketing assistance with the potential to market at multiple endpoints, as well as facilitates collective marketing of similarly managed cattle. BPS participants are required to: • implement a comprehensive operational plan, designed by Noble specialists, that affects all phases of operations, not just production; • become Beef Quality Assurance (BQA) certified and administer a veterinarian-approved herd health “Another important advantage BPS offers is that, by folprogram; lowing the protocols, participants will be in compliance • record and maintain cattle source information (e.g., with the National Animal Identification System, or NAIS,” identifications, birth dates, pairings and accompanying Altom adds. weight information); a. These cattle, produced by South Campsey Cattle Company, L.P., are source-, process- and performance-verified under the Agricultural Division’s Beef Production System (BPS) program. b. Micheal Campsey, left, and the Agricultural Division’s Dr. Robert Wells view cattle at Campsey’s ranch near Jacksboro, Texas. In addition to participation in the BPS program, the Campseys have instituted a wildlife management program as part of their relationship with the Noble Foundation. c. Each BPS animal is identified with a unique tag and is assigned a tracking number for program data collection purposes. d. BPS cattle participating in a Dec. 5, 2005, livestock sale at the Oklahoma National Stockyards (Oklahoma City), the second of such sales. More than 2,000 head of BPS cattle, about 17 percent of that day’s Oklahoma City market, were sold. 16 Agricultural Division Agricultural Division 17 Agricultural Division cooperators Micheal and Julie Campsey of South Campsey Cattle Company near Jacksboro, Texas, have been a part of BPS for two years. They have a large native range cow-calf operation running Angus/Brangus cows and primarily using Charolais bulls. And, not least of all, the Campseys are seeing the benefits of BPS at marketing time. By following Noble’s plan, which requires prescribed weaning, adherence to an animal vaccination and health plan and participation in a defined feeding program for a prescribed period — in 2005, for the Campseys, it was 45 days — they received additional average returns of more than one dollar a day, net of expenses, per head ($43.77 for heifers and $52.86 for steers). Even for a moderately-sized herd, producers can realize measurable returns. division wants to see that number increase. In addition to assisting producers, BPS is providing realworld educational opportunities for graduate students at Oklahoma State University. Selected students participating in the OSU-Noble graduate student program work with Noble specialists to assist in the collection and assessment of large quantities of data collected from the BPS program. “A couple of guys from my consultation team came down to our place and wanted to talk about a new program — it was BPS,” says Mr. Campsey, a cooperator since 1995. “They explained what we would have to do as part of it, and, since it wasn’t that different from what we were According to Altom, BPS started as a response to a chalalready doing, we decided to participate.” “We’ve done better on pricing as part of BPS than ever lenge from Michael A. Cawley, Noble Foundation Presibefore. It seemed like there was a step-function differdent, to develop and implement a program to positively Since joining the BPS program, the Campseys have ence in our prices at Oklahoma City,” Mr. Campsey says. impact agriculture in Noble’s service area. Although beef implemented livestock management practices such as cattle are the product, BPS is a combined effort of many pairing cows with calves and collecting birth dates to As far as recommending BPS to other Noble cooperators, Agricultural Division staff members and cooperators. better evaluate the performance of the herd. As a result, Mr. Campsey cautions that it takes a special producer to they have been able to identify poorly performing cows make it work. “Past experiences, the goals and desires of cooperators and cull accordingly. Additionally, after embracing the and new technologies have been combined to make BPS recordkeeping requirements of BPS, they now have an “In this program, it’s not just the cattle they’re working successful,” he adds. “The original BPS proposal had accurate understanding of their operational cost on a on, it’s everything related to cattle production,” he says. three phases, and we are still in phase one, so there are per-cow basis. “You’ve got to be willing to do things according to the pro- many exciting and promising plans to be developed and gram, and it might not be the way your great-granddaddy implemented. Mr. Campsey further enjoys the increased interaction did things. But, if you want to improve your cattle and “Improved genetics, overall ranch management and with his consultation team as part of BPS. performance, it’s for you.” marketing will certainly have a positive impact on the economic return of the producers and the region.” “We see the team a lot more now and review our BPS The Agricultural Division plans to expand BPS, with each plan periodically throughout the year,” he says, adding of the four consultation teams enrolling new cooperathat he has appreciated the extra help with his bull tors each year. In 2005, 25 cooperators with more than selection and buying. 3,850 cows were involved in the program, and the 18 Agricultural Division “IMPROVED GENETICS, OVERALL RANCH MANAGEMENT AND MARKETING WILL CERTAINLY HAVE A POSITIVE IMPACT ON THE ECONOMIC RETURN OF THE PRODUCERS AND THE REGION.” -Wadell Altom, Director, Agricultural Division 2002 Agricultural Division education and special projects manager Shan Ingram (standing on right) conducts a tour at Noble’s Pasture Demonstration Farm west of Ardmore. The special “tour trailer” has been developed for the comfort of visitors. Farmers tour one of the early Noble Foundation research farms. Agricultural Division 19 DURING 2005, THE AGRICULTURAL DIVISION: • added 125 new cooperators for a total of 1,185 cooperators; • hosted 59 educational events that reached 2,124 adults and 12 events that reached 486 youths; • had 22 research and 18 demonstration projects underway; • produced 17 new publications and distributed 4,981 total publications; • had 22 youths participate in AgVenture and 90 take part in the Junior Beef Excellence Program, which recognizes the carcass merit of steers exhibited at junior livestock shows by 4-H and FFA members in nine south-central Oklahoma counties; and • brought 23 teachers to Noble’s campus for tours and enrichment opportunities as part of Oklahoma Ag in the Classroom, a program that teaches Oklahoma school children about the state’s principal industries — food and fiber. Agricultural producers meeting at the Noble Foundation’s Coffey Ranch Agricultural Division 21 PLANT BIOLOGY DIVISION DIVISION OVERVIEW Formed in 1988, the Plant Biology Division conducts basic biochemical, genetic and genomic plant research for crop improvement (e.g., disease resistance, drought tolerance, yield increase, digestibility), enhancement of human and animal health and production of novel products in crops. The division includes three internal centers that are representative of its work: the Center for Crop Genomics, the Center for Molecular Plant-Microbe Interactions and the Center for Plant Natural Products and Metabolomics Research. In recent years, much of the Plant Biology Division’s research has focused on the understanding and improvement of legumes, and, in particular, forage legumes. The Noble Foundation is recognized internationally for its efforts to advance Medicago truncatula, a model legume species, as the genomic model for the study of all legumes, including economically significant crops such as soybean, alfalfa, clover and peanut. The Noble Foundation led the effort to sequence the genome of M. truncatula through an initial grant of $5 million to the Advanced Center for Genome Technology at the University of Oklahoma. With the additional contribution of $11 million from the National Science Foundation, this sequencing project has been cited as a successful example of a public-private partnership to advance science and transmit important research data to the public. As the next step, Plant Biology Division researchers have developed genetic resources and high-throughput gene and metabolite profiling technologies to assist in understanding the functions of the Medicago genome. Other specific programs of the Plant Biology Division include: • Studying the natural mechanisms plants use to defend themselves against pest and disease. Knowledge of these mechanisms will permit Noble scientists to improve such defenses or introduce new mechanisms into otherwise susceptible plants to bolster their defenses and increase their productivity. • Modifying the quantities and composition of a plant’s structural component — lignin — to improve the value and efficiency of plants as an animal feedstock and biofuel source. • Using plants to produce health-benefiting natural compounds, such as tannins and flavonoids, for the benefit of human and animal health. These compounds are often cited as having a positive impact on conditions such as cardiovascular disease, diabetes and obesity. • Understanding the molecular and cellular basis of gravity sensing by plant roots. Plant Biology Division scientists collaborate with many regional, national and international institutions, including the International Rice Research Institute (Philippines), Iowa State University, Oklahoma State University, The Salk Institute for Biological Studies, University of Chicago, University of Oklahoma and University of York (United Kingdom). The Plant Biology Division is led by Richard A. Dixon, D.Phil., D. Sc., founding director of the division. Plant Biology Division 23 PLANT BIOLOGY DIVISION – THE BASIC SCIENCE BEHIND ALFALFA IMPROVEMENT Even though alfalfa, a major forage legume in the United States, is one of the most economically important crops in the country, it is not necessarily an ideal forage for production by farmers, ranchers and dairy producers. Its susceptibility to fungal disease and tendency to cause pasture bloat — a life-threatening condition in ruminant animals like cattle and sheep — cause many producers to bypass it in favor of other crops. Because alfalfa is highly nutritious and could be a favorable addition to many farmers’ and ranchers’ operations, particularly in the southern Great Plains, the Noble Foundation is working to develop novel alfalfa varieties combining a suite of traits beneficial to producers, with the goal of encouraging increased production. Some of the traits to be incorporated include improved digestibility, reduced bloat potential, improved protein use efficiency and fungal disease resistance. These traits will not only make alfalfa more attractive to producers in the southern Great Plains, but will add value to this important crop worldwide. Though this “re-design” of alfalfa involves all three of the United States of America, Dixon and his collaboraNoble’s operating divisions, as well as external collabora- tors detailed their reduced-lignin transgenic alfalfa lines, tors such as Forage Genetics International and the U.S. which were produced by “knocking out” or down reguDairy and Forage Research Center, the basic science lating certain genes that lead to lignin production. The behind the efforts originates in Noble’s Plant Biology researchers targeted three genes believed to be involved Division. Alfalfa improvement at Noble arose from in the production of lignin and found that the indepenresearch into lignin modification that has been ongoing dent down regulation of two of them greatly improved in Dr. Richard A. Dixon’s laboratory since about 1990. digestibility — by more than 10 percent. Dixon, the Plant Biology Division’s director, explains that lignin is a structural material found in all plants. “We achieved both a large decrease in lignin content and an accompanying change in lignin composition,” Dixon “Having no nutritional qualities, the presence of excessive says. “The digestibility improvement was far greater than lignin in plant feedstock reduces animal digestibility and we, or other researchers, have been able to achieve so far.” affects animal productivity,” he says. “The reduction in natural lignin production in important forage crops, like Dixon also points out that this work demonstrates, for alfalfa, will increase profitability for agricultural producers, the first time, that the key to improving digestibility in enhance animal productivity and reduce the environmen- alfalfa is the reduction in lignin level rather than change tal impacts of large-scale animal operations.” in lignin composition. In a paper published in November 2005 in the journal Proceedings of the National Academy of Sciences of As to reducing alfalfa’s bloat potential and improving protein use efficiency, Noble researchers are a. Alfalfa is highly nutritious and could be a favorable addition to many farmers’ and ranchers’ operations in the southern Great Plains. The Noble Foundation is working to develop novel alfalfa varieties exhibiting improved performance to enhance livestock and dairy productivity worldwide. b. An alfalfa field afflicted with cotton root rot near Courtney, Okla. Cotton root rot is a destructive plant disease caused by a fungus that lives in the soil. It causes economic losses in alfalfa and numerous other crops and is the major reason why alfalfa production is not economically feasible in southern Oklahoma and much of Texas. (Photo courtesy of Dr. Stephen Marek, Oklahoma State University.) c. Noble postdoctoral fellow Dr. Yongzhen Pang works in Dr. Richard A Dixon’s lab on a condensed tannin staining experiment using transgenic Medicago truncatula hairy roots and Medicago truncatula seeds. Noble scientists have discovered a method for production of condensed tannins in plant tissue, laying the groundwork for making condensed tannins readily available in the consumable parts of plants. d. Cellular-level concentrations of naturally occurring lignin (shaded in red) within plant tissue. Since it has no nutritional qualities, excessive lignin in plant feedstock reduces its digestibility and affects animal productivity. Noble researchers continue to work to reduce the amount of lignin in forages to improve their value and quality. 24 Plant Biology Division b c Plant Biology Division 25 investigating condensed tannins, naturally occurring compounds that provide a variety of nutrition and health benefits to animals and humans. These potent antioxidants, which are found in grapes, cranberries and green tea, reduce the occurrence of pasture bloat by decreasing methane gas production during digestion. Such tannins also slow the degradation of proteins by rumen microorganisms, permitting more protein to be used by the animal and resulting in greater production of beef, milk and wool. Alfalfa contains condensed tannins in its seed, but not in the plants’ leaves or stems. Plant Biology Division researchers discovered a new enzyme that, for the first time, allowed for production of condensed tannins in plant tissue that does not naturally make them. This research is the groundwork for making condensed tannins readily available in consumable parts of the plants. “While this project is still at the basic gene discovery and proof-of-concept stage, we hope that bloat reductionbypass protein will become the second quality trait introduced into alfalfa through the Noble Foundation’s efforts,” Dixon says. A third area of alfalfa improvement research is investigat26 Plant Biology Division ing cotton root rot, a destructive plant disease caused by a fungus that lives in the soil. This disease causes economic losses in alfalfa and numerous other crops and is the major reason why alfalfa production is not economically feasible in southern Oklahoma and much of Texas. After more than a century of sporadic research, no effective cultural or chemical control has been developed, and no sources of genetic resistance have been identified. Working as part of the Consortium for Legume Research, a group that also includes researchers from Oklahoma State University and University of Oklahoma, Noble researchers in both the Plant Biology and Forage Improvement divisions hope to characterize cotton root rot in alfalfa at the biological, chemical and genetic levels, with the long-term goal of developing resistant alfalfa varieties. “The development of a cotton root rot-resistant variety of alfalfa will greatly expand the alfalfa growing region of Oklahoma and the southwest,” Dixon adds. As part of the consortium’s efforts, the Plant Biology Division will apply genomic technology, metabolite profiling and antifungal screens to determine how infected plants respond at the molecular level. Researchers then can define chemical pathways and gene regulatory regions that can be used for engineering novel resistance mechanisms against the fungus. Even with success in achieving these research objectives, the road to “improving” alfalfa will not stop there. Plans are in progress to develop the lignin technology for improvements to alfalfa as a potential feedstock for ethanol production, and research, already well in progress, has shown proof of concept for generating alfalfa plants containing high levels of natural products beneficial to both animal and human health. “Alfalfa is a remarkably versatile crop, and we are only just beginning to appreciate its potential in areas outside of the traditional forage usage,” Dixon says. Noble’s work in alfalfa improvement builds on its tradition of improving agriculture. More specifically, Dixon notes that it has been made possible by Noble’s significant investment in cutting-edge genomics technology within the Plant Biology Division, and the improvements will ultimately reach farmers and ranchers through ongoing collaborations among Noble’s three operating divisions. “ALFALFA IS A REMARKABLY VERSATILE CROP, AND WE ARE ONLY JUST BEGINNING TO APPRECIATE ITS POTENTIAL IN AREAS OUTSIDE OF THE TRADITIONAL FORAGE USAGE.” -Dr. Richard A. Dixon, Director, Plant Biology Division 1950s 2004 Plant Biology Division postdoctoral fellow Dr. Deyu Xie examines one of thousands of Medicago truncatula plants in Noble’s greenhouse complex. Noble employee Ruble Langston waters plants in one of the first Noble greenhouses. Plant Biology Division 27 DURING 2005, PLANT BIOLOGY DIVISION PRINCIPAL INVESTIGATORS: • headed 10 primary Noble Foundation laboratories; • published 38 papers in international, peer-reviewed journals, including Proceedings of the National Academy of Sciences USA, Plant Journal, Plant Cell, Trends in Plant Science, Plant Physiology and Molecular and Cellular Proteomics; • received more than $1.3 million in new external funding from sponsored research and state and federal agencies; • received public support from the National Science Foundation, U.S. Department of Energy, U.S. Department of Agriculture, the Oklahoma Center for the Advancement of Science and the Oklahoma State Regents for Higher Education; • filed six new patent applications; • received two U.S. patents: Transgenic legume plants modified to produce resveratrol glucoside and uses thereof and Isoflavonoid methylation enzyme; • held 13 adjunct faculty positions at seven institutions of higher education, including Oklahoma State University, Rice University, Texas A&M University, University of Oklahoma, University of Texas, University of North Texas and Washington State University; • served on the editorial boards of 11 international journals; and • concluded a significant National Science Foundation-funded research project with researchers at Virginia Tech University which advanced the knowledge of forage legumes and, in particular, the model legume Medicago truncatula. Medicago truncatula growing in the Noble Foundation greenhouse Plant Biology Division 29 FORAGE IMPROVEMENT DIVISION DIVISION OVERVIEW Formed in 1997, the Forage Improvement Division translates academic research into tangible, usable plant varieties. While focused on developing new forages for producers in Oklahoma and north Texas, the work of this research group has the ability to deliver a range of advanced crop alternatives to producers far beyond the southern Great Plains. Forages refer to the edible parts of plants, sometimes including the grain, used for the feeding of livestock. Depending on the specific variety, forages can be directly grazed or harvested and stored for later feeding. While many species of plants can be forages, the division focuses on the development and improvement of grazeable and harvestable legumes (alfalfa, red clover, white clover) and grasses (tall fescue, orchardgrass, bermudagrass, hardinggrass, wheatgrass). The division’s researchers use a broad range of techniques to accomplish plant improvement — from conventional breeding to use of emerging biotechnologies. Conventional plant breeding involves using selection and crossing technologies to produce plants exhibiting desired traits. This process, in its simplest form, has been used by civilizations for hundreds of years to improve crops. Modern biotechnologies in plant science are concentrated in two evolving areas: genomics and transgenics. Genomics concerns the study of the actions and interactions of all genes in an organism (a genome) rather than focusing on a single gene. Genomics enables researchers to identify key genes (and their functions) through understanding the complex interactions induced by changing environments and conditions. Transgenics, or genetic engineering, concerns the precise movement of a gene from one organism to a plant to impart a desirable trait or function. During the process of plant improvement research, division researchers conduct peer-reviewed science to optimize plant breeding methodologies and the application of biotechnologies. ment, performance evaluation and animal impact and safety assessments. Evaluations and assessments are conducted in accordance with state and federal requirements. Together, these activities accomplish the division’s mission to develop and release improved forages through cultivar development and, in the process, advance the science of forage and molecular breeding. Forage Improvement Division scientists collaborate with many regional, national and international institutions, including the Boyce Thompson Institute for Plant Research (Ithaca, N.Y.), Grasslanz Technology Ltd./ AgResearch Ltd. (New Zealand), Gentos S.A. (Argentina), Forage Genetics International (West Salem, Wis.), Mississippi State University, Oak Ridge National Laboratory (Oak Ridge, Tenn.), Oklahoma State University, Texas Tech University, Texas A&M University, University of Georgia and University of Oklahoma. The division is led by Joseph H. Bouton, Ph.D. Once improved varieties are successfully created, the division has the capabilities to complete the developForage Improvement Division 31 FORAGE IMPROVEMENT DIVISION — ALTERNATIVE FORAGE SOLUTIONS FOR A COMPLEX AGRICULTURAL ENVIRONMENT As the Noble Foundation’s translational research arm, the Forage Improvement Division creates new, improved varieties of forages — grasses or legumes used for feeding livestock — having economically important traits such as drought tolerance or disease and pest resistance. The division focuses on developing these improved varieties for use by farmers and ranchers in a 100-mile radius of Ardmore, Okla., an area that has a particularly complex agricultural environment. “Our environment is very interesting,” says Dr. Joseph H. Bouton, Forage Improvement Division director. “A lot can change in 200 miles — mainly rainfall.” In an event Bouton refers to as the “I-35 Phenomenon,” average annual rainfall across the division’s target area ranges from 18 inches in the west to 42 inches in the east, with Interstate 35 as the dividing line between the drier and wetter ecosystems. With this two-foot difference in yearly precipitation, a host of different forage types are called for to meet the needs of regional agricultural producers. These producers’ needs are varied, not only because of location on the rainfall gradient, but in terms of what kind of agricultural system ultimately will be using the forages. Within the 100-mile radius of Ardmore, there are more than 2.8 million head of cattle (2002 Census of Agriculture, USDA). While the majority of livestock enterprises in the region are cow-calf beef production operations, many producers run stocker cattle, which are young, lightweight calves fed on forage until they are marketed at a desired weight. In addition, the region is home to a growing dairy industry. No matter what type of livestock operations producers have, they will use forages — whether in the form of grazeable pasture or as harvestable hay or silage. The key for them is that the forage they are using meets their needs in both quality and production factors. “As we work to provide alternative forage solutions for this complex environment, we know we have to give farmers and ranchers something that will work, a variety that has the traits they need,” Bouton says. As Bouton and his researchers approach the broad mission of developing improved forages for the region, they evaluate a wide range of possible species — bot native and non-native — before narrowing their focus to a manageable number of target species and target traits. This approach considers the inherent qualities of forages adapted to the region and the preference of many producers to rely on traditional forage systems, but it also seeks to explore non-traditional alternatives to introduce new traits or offer important new opportunities. “We look at grazeable and harvestable legumes [alfalfa and red and white clovers] and grasses [tall fescue, wheatgrass, hardinggrass] as well as small grains [rye, wheat],” he says. “We consider persistence traits, for example, tolerance to heat, drought, grazing, acid soils, diseases and insects; we also consider quality traits such as higher digestibility, anti-bloat characteristics and increased protein utilization along with the elimination of anti-quality traits.” The division is capable of producing improved varieties a. Traci Rowland, a Forage Improvement Division research associate, clips tall fescue. b. Tall fescue plants in Noble’s greenhouse facility. Noble researchers seek to improve tall fescue, so it can serve as a coolseason, grazing alternative for regional livestock populations. c. Cell-level image of tall fescue leaves infected with a beneficial, novel endophyte. Leaf peels from tall fescue leaf sheaths were treated with aniline blue stain. The fungal endophyte is seen as a dark blue stain between the plant cells. d. Noble’s headquarters in Ardmore serves as one of its research and demonstration farms. One project underway is rye variety trials, during which various rye cultivars are developed and evaluated for traits such as persistence, yield and drought and pest resistance, among other characteristics. 32 Forage Improvement Division b c Forage Improvement Division 33 through traditional plant breeding and advanced plant ground growth activity during arid, high-temperature breeding using targeted genomics and also by creating conditions, which are consistent with many summer innovations using applied biotechnologies. Once climates in the south and southwestern United States. produced, the division has the capabilities to conduct regulated and unregulated field trials, animal safety trials “We are investigating summer dormancy as a mechanism and production evaluation and assessment. These activi- for increasing persistence in tall fescue. Summerties are critical to the overall goal of moving science from dormant plants presumably are better able to conserve the laboratory into the hands of farmers and ranchers soil moisture and root reserves than summer-active who can benefit from it. types,” Bouton says. Though the Forage Improvement Division has only been Results from this work might possibly have application in operating since 1997, it already has several significant developing summer-dormant types in other species. innovations to its credit. One is a tall fescue population Finally, the Forage Improvement Division is continuing with a naturally occurring novel endophyte (a beneficial fungus that grows within a plant) that minimizes or elimi- Noble’s tradition of releasing improved small grain varieties primarily for livestock production, which began with nates the animal health problems usually associated the release of Elbon winter rye in 1956 and continued with wild-type endophyte infection while still conveying with the successful release and use of the Maton and favorable production traits. This tall fescue is currently Bates rye varieties. in the advanced animal production trial stage and is slated for commercial release in 2008 or 2009. The “The small grain breeding program is an integral part of novel endophyte is licensed from AgResearch Ltd. (New efforts to develop varieties suitable for improved forage Zealand). production in the southern Great Plains,” Bouton says. The division’s other work in tall fescue includes Distribution of forage yield is as important as total investigating summer dormancy, which is characterized forage yield, Bouton explains, and early fall-winter forage by substantial or complete cessation of a plant’s above34 Forage Improvement Division production is particularly valuable because it allows producers more flexibility for earlier grazing or increased stockpiling. “Livestock producers can spend a considerable amount in the fall-winter transition period,” Bouton says. “Thus, the major objective for the small grain breeding program is to develop varieties with early fall-winter forage yield potential.” Maton II is a new winter rye variety recently released by Noble that is well adapted to southern Oklahoma and north and east Texas. During seven years of testing at Ardmore and Burneyville, Okla., Maton II averaged 55 percent greater fall and winter forage and 6 percent greater total forage than Maton rye, another productive Noble variety released in 1975. Commercialization of Maton II is scheduled for 2006. “For us, part of our mission to help farmers and ranchers in the southern Great Plains is giving them a tangible product that positively affects their operations,” Bouton says. “Sometimes the impact of a widely used variety can change a whole industry for the better.” “AS WE WORK TO PROVIDE ALTERNATIVE FORAGE SOLUTIONS FOR THIS COMPLEX ENVIRONMENT, WE KNOW WE HAVE TO GIVE FARMERS AND RANCHERS SOMETHING THAT WILL WORK, SOMETHING THAT HAS THE TRAITS THEY NEED.” -Dr. Joseph H. Bouton, Director, Forage Improvement Division 1950s The Forage Improvement Division’s Dr. Yan Zhang (left) and Kristen L. McDowell collect white clover seeds at Noble’s Headquarters Farm in Ardmore. Horace Harper (left) of the Noble Foundation talks with visitors at a field demonstration. Forage Improvement Division 35 IN 2005, FORAGE IMPROVEMENT DIVISION PRINCIPAL INVESTIGATORS: • headed six primary Noble Foundation laboratories; • published 26 papers in international, peer-reviewed journals, including Crop Science, Theoretical and Applied Genomics, Agronomy Journal, Genome Plant Journal, Plant Science, Journal of Plant Physiology, Functional Plant Biology and Planta; • received $960,000 in new external funding from sponsored research and state and federal agencies; • received public support from the U.S. Department of Agriculture, the Oklahoma Department of Agriculture and the Oklahoma State Regents for Higher Education; • filed six new patent applications; • held six adjunct faculty positions at five institutions of higher education, including New Mexico State University, Oklahoma State University, Texas Tech University, University of Georgia and University of New Mexico; and • completed evaluation and assessment of a new winter rye variety, Maton II, which will be commercially released in 2006 and continues the tradition of productive Noble rye releases (Elbon, Bonel, Maton, Oklon and Bates) that began in 1956. Ornamental clovers growing in the Noble Foundation greenhouse Forage Improvement Division 37 NONRESIDENT FELLOWS As the Noble Foundation continues its innovative work in plant science and production agriculture, its efforts are guided by a distinguished group of scientists, researchers and industry leaders who offer candid review of divisional programs and advise Noble management and Trustees. Each of Noble’s three operating divisions has a panel of such reviewers, also known as nonresident fellows. “The nonresident fellow program has been instrumental in building and developing our programs throughout the years,” said Michael A. Cawley, Noble president. “In addition to each panel providing direction to its respective division, collectively, these panels provide insight into how the differing expertise and resources of each division can be combined to address complex questions that can dramatically impact future agriculture or its production.” 2005 Agricultural Division nonresident fellows are: • Dr. William L. Mies, director of supply chain management, eMerge Interactive. Mies’ role at eMerge Interactive is to operate and control a supply chain management system using principles of total quality management and value-based marketing that will produce the highest-quality, most uniform beef product available. • Dr. Clint Roush, farmer/rancher, Clint Roush Farms, Inc. Roush’s family farming operation consists of 4,200 acres of wheat, alfalfa, improved grass and native rangeland in Custer County, Okla. The farm’s livestock enterprises are stocker and feeder cattle. • Michael H. Salisbury, chairman and CEO, Salisbury Management Services, Inc. Salisbury founded Salisbury Management Services, Inc., in 1979, to provide business management, personnel management, technical financial analysis and computer software to the private agri-business sector. • Dr. W. Richard Teague, professor, Texas Agricultural Experiment Station’s Chillicothe-Vernon Research and Extension Center. Teague currently conducts research in support of ecologically and economically sustainable management programs for the Rolling Plains. Before that, he was a research officer and specialist scientist in the Department of Agriculture, Eastern Cape Region, South Africa. Nonresident fellows serving in 2005 in the Plant Biology Division are: • Dr. Neal K. Van Alfen, dean of the College of Agricultural and Environmental Sciences, University of CaliforniaDavis. His current research interests involve biotechnology to develop biological control strategies for forest diseases. He has extensive experience as a consultant on effects of air pollution on environmental health. • Dr. Joseph Chappell, professor of agricultural biotechnology, Agronomy Department, University of Kentucky. Chappell works to understand the mechanisms plants use to defend themselves against microbial pathogens. His research uses a wide range of experimental strategies, including genetic engineering, structure-function comparisons of genes and proteins and simple physiological experiments to uncover putative signal molecules. • Dr. Ralph S. Quatrano, Spencer T. Olin Professor and chairman, Department of Biology, Washington University (St. Louis, Mo.). The primary objective of Quatrano’s research program is to understand the mechanisms underlying how cells become polar and how tissuespecific factors and hormones regulate gene expression in plants. • Dr. Virginia Walbot, professor, Department of Biological Sciences, Stanford University. Walbot’s laboratory is interested in how genotypic and phenotypic diversity is created during the life cycle of plants. The Forage Improvement Division’s 2005 nonresident fellows include: • Dr. William Meyer, director of turfgrass breeding, Rutgers University and the New Jersey Agricultural Experiment Station. Meyer’s recent work has involved conducting population improvement projects on 13 different species of cross-pollinated cool-season turfgrasses. He has branched into forage grasses with an emphasis on orchardgrass, has conducted a wildflower evaluation program and has directed efforts in sugarbeet breeding. • Dr. Ronald L. Phillips, Regents’ Professor, McKnight Presidential Chair in Genomics and director of the Center for Microbial and Plant Genomics, University of Minnesota, Member National Academy of Sciences. Phillips’ research objectives are to develop and apply molecular and classical cellular heredity information for the improvement of important traits in plants, to evaluate cell genetic systems for manipulating crop species and to improve plant selection procedures. Interdisciplinary training in genetics and plant breeding for graduate students and postdoctoral associates is a key part of his program. • Dr. Jeffrey J. Volenec, professor of plant physiology and assistant head of the Department of Agronomy, Purdue University. Volenec’s responsibilities include research, teaching and outreach in forage physiology and management. His research focuses on identifying and characterizing traits, genes and gene products that impact growth and abiotic (environmental) stress tolerance of alfalfa. Nonresident Fellows 39 GRANTING REPORT SUPPORTING THE PRESERVATION OF OKLAHOMA’S PAST: THE OKLAHOMA HISTORY CENTER Between land runs and the Dust Bowl, Indian Territory days and the oil boom, there’s no doubt Oklahoma has a colorful past. At the newly opened Oklahoma History Center in Oklahoma City, visitors can step into days gone by and relive the triumphs and tragedies of the Sooner State. As Oklahoma anticipates its centennial of statehood in 2007, this Smithsonian-quality museum is a fascinating reflection on Oklahoma’s unique heritage. Situated on an 18-acre campus that features three outdoor exhibits, the breathtaking 215,000-square-foot facility is comprised of five interior galleries, each featuring different aspects of Oklahoma’s history. Construction of the $60 million building was funded by the State of Oklahoma, and private donors provided $9.2 million for gallery and exhibit development. The Noble Foundation’s Board of Trustees awarded a $500,000 grant in support of the project. As a fitting tribute to the Foundation’s 60 years of service in the agriculture sector, the Oklahoma Historical Society named the gallery showcasing agriculture The Samuel Roberts Noble Foundation Gallery. “The Oklahoma History Center is a great project, and the Noble Foundation is proud to support it. This museum is an Oklahoma treasure on par with the Oklahoma City Museum of Art and the Western Heritage Museum,” says Donna Windel, director of granting at Noble. Dr. Bob Blackburn, executive director of the Oklahoma Historical Society, says that for 60 years, the Noble Foundation has invested in the quality of life for all Oklahomans. “From better educational opportunities and a greater appreciation for the arts to economic development and our ability to live in harmony with the land, the vision of Mr. Noble has been carefully nurtured and practiced by the board and the staff over these many years,” he says. “I am pleased with the gift because it puts the Oklahoma History Center in good company with other projects supported by the Noble Foundation.” When envisioning the museum, planners decided not to use a chronological approach, Blackburn says. “We had more than 40 topics we wanted to cover, so we opted instead for a ‘shopping mall’ approach — there’s something here for everyone.” Topics are logically grouped and flow naturally through each gallery’s exhibits. “The Noble Foundation Gallery contains exhibits on land and how to use it wisely, farm and ranch settlement, the development of cities, weather determinism, education, government and politics, law and order, even quilts and fashion,” Blackburn says. According to Blackburn, half the people who took part in the 1889 land run settled in cities with the remainder settling in rural areas. “So, in the Noble Foundation Gallery, there are two paths you can choose upon entering: one that traces the state’s rural history and one that chronicles the development of Oklahoma’s cities,” he says. Granting Report 41 As visitors move through the gallery, they follow the evolution of government and politics and law and order. Political memorabilia is displayed in pull-out drawers so visitors can see the changes in campaign materials over the years. “We use an immersion process to take visitors into history,” Blackburn explains. “Instead of just looking at exhibits, they can literally walk into and through Oklahoma history.” This technique is apparent throughout the Noble Foundation Gallery, where visitors can tour a clapboard farmhouse that transitions from a newly built, late 1800s home to a distressed sharecropper’s home of the 1930s. A reproduction of an urban streetcar allows visitors to board and watch a video comparing and contrasting the histories of Oklahoma City and Tulsa, and, in a separate exhibit, visitors can step into a complete kitchen filled with the sights, sounds and colors of the 1950s. “Interactive technology is used throughout the Noble Foundation Gallery to engage visitors and encourage them to ask questions and seek answers,” Blackburn says. “Some are low-tech, like flip cards, but most are high-tech, such as databases and video presentations on touch-screen monitors.” The gallery concludes with an overview of domestic history in the 20th century and the impact of education at all levels of society. The education exhibit incorporates eight desks in a classroom setting. A visitor sitting at one desk may see the tools and textbooks from a one-room schoolhouse in Pontotoc County, while another desk may house the materials from a modern university classroom. Blackburn believes that to understand Oklahoma history, people must know themselves as a community. “Without understanding farms and ranches, the growth of cities, the development of governmental institutions and the history of life at home, we cannot know who we are,” he says. “The Noble Foundation, through funding the Noble Foundation Gallery at the Oklahoma History Center, has made possible a unique opportunity to share that story with the general public.” a. Visitors to the Noble Foundation Gallery’s collection of political artifacts can see boots worn by Governor Johnston Murray that are emblazoned with Oklahoma’s state seal on the front and state flag on the back. b. Oklahoma families donated many of the items in the The Samuel Roberts Noble Foundation Gallery. One is a Case tractor given by John Donley of Weatherford, Okla. Donley grew up on a family farm in Custer County, Okla. c. Upon entering the Oklahoma History Center, visitors are greeted by a three-story bank of windows framing the State Capitol building. A full-size replica of the Winnie Mae, the aircraft famed aviator Wiley Post flew around the world, is suspended high overhead. d. Dr. Bob Blackburn, executive director of the Oklahoma Historical Society, serves as curator of the exhibits in the Noble Foundation Gallery. Behind him in the gallery is a wagon used by one family in both Oklahoma land runs — unsuccessfully in 1889 and successfully in 1893. 42 Granting Report a b Granting Report 43 GRANTS APPROVED IN 2005 GRANT AMOUNT AMOUNT PAID IN 2005 $15,000 $15,000 Arbuckle Life Solutions, Inc. Ardmore, Okla. / Renewed operating support 35,000 35,000 Ardmore Christian School Ardmore, Okla. / Library/Media Center furnishings and equipment 15,000 15,000 300,000 300,000 ORGANIZATION Acton Institute for the Study of Religion and Liberty Grand Rapids, Mich. / Public policy outreach to religious leaders Ardmore City Schools Ardmore, Okla. / Capital improvements at Ardmore High School Ardmore Payne Education Center, Inc. Ardmore, Okla. / Operating support 180,000 60,000 Association of Professional Oklahoma Educators Foundation Norman, Okla. / Renewed operating support 30,000 30,000 Atlanta Union Mission Corporation Atlanta, Ga. / Renewed operating support for Village Atlanta Renewed operating support for the men’s program 20,000 5,000 20,000 5,000 Broadway House Ardmore, Okla. / Operating support 30,000 30,000 5,000 5,000 30,000 30,000 625,000 125,000 Charles B. Goddard Center for Visual and Performing Arts, Inc. Ardmore, Okla. / Renewed operating support 25,000 25,000 Chisholm Trail Heritage Center Association Duncan, Okla. / Support for the education program 75,000 75,000 City Care, Inc. Oklahoma City, Okla. / Support for Whiz Kids 15,000 15,000 Cameron University Lawton, Okla. / Renewed operating support for KCCU public radio Carter County CASA, Inc. Ardmore, Okla. / Operating support Chamber of Commerce Foundation, Inc. Ardmore, Okla. / Support for the Cornerstone project 44 Granting Report Ardmore Christian School Library/Media Center furnishings and equipment Ardmore City Schools Capital improvements at Ardmore High School GRANT AMOUNT AMOUNT PAID IN 2005 $11,500 $11,500 Colonial Williamsburg Foundation Williamsburg, Va. / History Education Initiative for Oklahoma teachers - 2006 session 20,000 20,000 Communities in Schools, Ardmore, Oklahoma, Inc. Ardmore, Okla. / Support for the after-school program 27,400 27,400 Diabetes Solutions - OK, Inc. Oklahoma City, Okla. / Renewed support for a camping program for diabetic children 7,500 7,500 Education and Employment Ministry, Inc. Oklahoma City, Okla. / Operating support Renewed operating support 25,000 5,000 25,000 5,000 Family Resource Network, Inc. Jefferson, Ga. / TeenPact Oklahoma scholarship fund 10,000 10,000 Foundation Center New York, N.Y. / Renewed operating support 10,000 10,000 1,000,000 200,000 Great Expectations Foundation Tahlequah, Okla. / Operating support 20,000 20,000 Greater Ardmore Scholarship Foundation Ardmore, Okla. / Annual distribution from the Pettitt Educational Fund Operating support 77,605 10,000 77,605 10,000 Greater Oklahoma City Tree Bank Foundation Edmond, Okla. / Operating support 20,000 5,000 Jim Riley Outreach, Inc. Edmond, Okla. / Scholarship program 25,000 25,000 Leadership Institute Arlington, Va. / Renewed operating support 20,000 20,000 ORGANIZATION Coffee Creek Riding Center Edmond, Okla. / Program support and equipment George West Mental Health Foundation, Inc. Atlanta, Ga. / Skyland Trail capital campaign Colonial Williamsburg Foundation History Education Initiative for Oklahoma teachers – 2006 session Communities in Schools Support for the after-school program Granting Report 45 ORGANIZATION GRANT AMOUNT AMOUNT PAID IN 2005 Mount Vernon Ladies’ Association of the Union Mount Vernon, Va. / Capital campaign support $25,000 $25,000 National Cowboy and Western Heritage Museum Oklahoma City, Okla. / Renovation of the Sam Noble Special Events Center 240,500 120,250 National Kidney Foundation of Georgia Atlanta, Ga. / Edward Noble - David Lowance, M.D. Young Investigator Grant 150,000 -0- 25,000 25,000 1,000,000 200,000 Oklahoma City National Memorial Foundation Oklahoma City, Okla. / Second Decade Campaign 500,000 100,000 Oklahoma Council of Public Affairs, Inc. Oklahoma City, Okla. / Operating support 600,000 200,000 Oklahoma Council on Economic Education Edmond, Okla. / Carter County Economic Education project 30,000 10,000 Oklahoma Foundation for Excellence Oklahoma City, Okla. / Renewed support for the Academic Awards Banquet and Fall Forum 10,000 10,000 120,000 60,000 1,200,000 400,000 Oklahoma Youth Expo, Inc. Oklahoma City, Okla. / Oklahoma Agricultural Leadership Encounter Program and scholarship funding 65,000 65,000 Omniplex Science Museum Oklahoma City, Okla. / OSBI exhibit design 25,000 25,000 Oklahoma Arts Institute Oklahoma City, Okla. / Operating support Oklahoma Christian University, Inc. Oklahoma City, Okla. / Construction of a science and research center Oklahoma School of Science and Mathematics Oklahoma City, Okla. / Bridge funding for salary supplements Oklahoma State University Stillwater, Okla. / Bovine Respiratory Disease research 46 Granting Report Oklahoma Arts Institute Operating support for the Summer Arts Institute Oklahoma City National Memorial Foundation Second Decade Campaign GRANT AMOUNT AMOUNT PAID IN 2005 $21,000 $21,000 Philanthropy Roundtable Washington, D.C. / Operating support 15,000 15,000 Positive Tomorrows Community Board, Inc. Oklahoma City, Okla. / Operating support 20,000 20,000 Regional Food Bank of Oklahoma, Inc. Oklahoma City, Okla. / Operating support 50,000 50,000 ORGANIZATION Pansy Garden Club Ardmore, Okla. / Carnegie Library building improvements Southeastern Legal Foundation, Inc. Atlanta, Ga. / Operating support 50,000 50,000 Southwestern Diabetic Foundation, Inc. Gainesville, Texas / Capital improvements at Camp Sweeney 10,000 10,000 United Fund of Ardmore, Inc. Ardmore, Okla. / Match for employees’ contribution for 2005 13,282 13,282 200,000 200,000 Washington Legal Foundation Washington, D.C. / Operating support 50,000 50,000 YMCA of Ardmore Ardmore, Okla. / Renewed operating support 50,000 50,000 Youth and Family Services, Inc. El Reno, Okla. / Maintenance endowment for the Donald Reynolds Caring Center 50,000 -0- $7,213,787 $2,978,537 AMT./YEAR AUTHORIZED AMOUNT PAID IN 2005 $223,000/2004 $36,000 University of Oklahoma Foundation, Inc. Norman, Okla. / Women’s basketball scholarship TOTAL GRANTS APPROVED IN 2005 Southwestern Diabetic Foundation, Inc. Capital improvements at Camp Sweeney YMCA of Ardmore Renewed operating support ACTIVITIES FOR PRIOR YEAR GRANT COMMITMENTS ORGANIZATION Arbuckle Life Solutions, Inc. Ardmore, Okla. / Support for the intensive outpatient treatment program and capital projects Granting Report 47 ORGANIZATION AMT./YEAR AUTHORIZED AMOUNT PAID IN 2005 $1,000,000/2004 $250,000 500,000/2004 500,000 20,000/2004 20,000 1,000,000/2004 250,000 90,000/2004 30,000 149,377/2004 11,444 5,000,000/2004 1,000,000 Homeless Alliance Oklahoma City, Okla. / Support for the Homeless Alliance 225,000/2004 75,000 Intercollegiate Studies Institute, Inc. Wilmington, Del. / Oklahoma Conservative Leadership Project 100,000/2004 25,000 Oklahoma Centennial Commemoration Fund, Inc. Oklahoma City, Okla. / Sponsorship of the Centennial projects 400,000/2004 125,000 2,500,000/2001 500,000 500,000/2004 250,000 1,000,000/2001 15,000/2004 100,000 15,000 62,500/2002 12,500 Ardmore Tourism Authority Ardmore, Okla. / Ardmore Convention Center construction Children’s Center, Inc. Bethany, Okla. / Construction of a pediatric medical rehabilitation unit Colonial Williamsburg Foundation Williamsburg, Va. / History Education Initiative for Oklahoma teachers - 2005 session Dean A. McGee Eye Institute, Inc. Oklahoma City, Okla. / Research facility construction Gloria S. Ainsworth Day Care Center, Inc. Ardmore, Okla. / Operating support Hardy Murphy Coliseum Authority Ardmore, Okla. / Capital projects Heritage Foundation Washington, D.C. / Operating support Oklahoma City Museum of Art Oklahoma City, Okla. / Theater construction Oklahoma Historical Society, Inc. Oklahoma City, Okla. / “Farm and Ranch in Oklahoma” exhibit Oklahoma State University Foundation Stillwater, Okla. / Support for the enhancement of plant science Support for the Oklahoma Ag Leadership Program Salvation Army USA Atlanta, Ga. / Oklahoma cadet scholarships 48 Granting Report Oklahoma Centennial Commemoration Fund, Inc. Sponsorship of the Centennial projects Oklahoma State University Foundation Support for the Oklahoma Ag Leadership Program ORGANIZATION AMT./YEAR AUTHORIZED AMOUNT PAID IN 2005 $250,000/2001 $50,000 54,650/2004 -0- 15,000/2004 15,000 29,610/2004 7,402 Shepherd Center, Inc. Atlanta, Ga. / Operating support for the Noble Learning Resource Center Shiloh Summer Camp, Inc. Oklahoma City, Okla. / Construction of Kaleo Shepherd’s Lodge University of Oklahoma Foundation, Inc. Norman, Okla. / “Hunters of the Sky” exhibit at the Sam Noble Oklahoma Museum of Natural History Western Oklahoma State College Altus, Okla. / Summer Academy in Plant Biology TOTAL PAID FOR PRIOR YEAR GRANT COMMITMENTS $3,272,346 Shepherd Center, Inc. Operating support for the Noble Learning Resource Center SCHOLARSHIPS AND EMPLOYEE MATCHING GRANTS ORGANIZATION Employee Matching Grants To match dollar for dollar contributions made by employees and directors of Noble companies to educational institutions of their choice AMOUNT PAID IN 2005 $202,717 Noble Educational Fund Scholarships To provide a maximum of 10 $20,000 four-year awards to children of employees of Noble companies 190,000 Sam Noble Scholarship Program To provide scholarships in the fields of agriculture and technology to southern Oklahoma students 133,125 Miscellaneous Scholarships Funds for scholarships to students selected by their respective universities in courses of study specified by the Noble Foundation 50,848 Miscellaneous Grants Various qualifying grants in the amount of less than $5,000 each 2,125 TOTAL SCHOLARSHIPS AND EMPLOYEE MATCHING GRANTS PAID TOTAL GRANT PAYMENTS DURING 2005 University of Oklahoma Foundation, Inc. “Hunters of the Sky” exhibit at the Sam Noble Oklahoma Museum of Natural History $578,815 $6,829,698 Granting Report 49 FINANCIAL REPORT THE SAMUEL ROBERTS NOBLE FOUNDATION, INC., STATEMENTS OF FINANCIAL POSITION DECEMBER 31 ASSETS CURRENT ASSETS Cash Short-term investments Accrued interest and dividends receivable Receivable from unsettled securities sales Accounts receivable and other assets Prepaid expenses 2005 2004 $106,249 30,174,048 1,245,559 11,303,746 567,110 13,921 $69,968 32,478,429 2,686,393 1,982,934 915,728 628,833 2005 Investment Portfolio Allocation Domestic Common Stocks and Equities 20% Fixed Income, Bonds and Cash 17% 63% International Stocks Marketable securities, at fair value U.S. government securities Corporate bonds Corporate stocks TOTAL MARKETABLE SECURITIES 184,032,734 38,477,914 831,545,736 110,342,816 69,965,385 786,641,855 1,054,056,384 966,950,056 Growth in Total Assets in millions Program-related investments – net Deferred financing costs Assets permanently restricted for investment Property and equipment Accumulated depreciation NET PROPERTY AND EQUIPMENT TOTAL ASSETS 50 Statements of Financial Position 1,097,467,017 1,005,712,341 1,453,255 503,799 2,064,106 1,453,255 598,262 2,063,423 165,734,173 (28,181,656) 151,627,969 ( 26,076,217) 137,552,517 125,551,752 $200 $1,239,040,694 $1,135,379,033 $0 $1,200 $1,000 Millions TOTAL CURRENT ASSETS $800 $600 $400 2001 2002 2003 2004 2005 LIABILITIES AND NET ASSETS 2005 Qualifying Distributions 2004 CURRENT LIABILITIES Accounts payable and accrued expenses Interest payable Payable from unsettled securities purchased Grants payable, current Notes payable, current Bonds payable, current $5,028,502 534,008 51,522,210 3,712,053 11,965,144 8,000,000 $6,466,421 597,467 3,850,824 3,142,619 11,110,799 7,615,000 TOTAL CURRENT LIABILITIES 80,761,917 32,783,130 Grants payable Notes payable Bonds payable, net Accrued pension costs 5,723,028 293,316 57,814,876 5,814,228 5,210,806 124,644 66,188,915 6,916,874 as a percentage of assets 10% 8% 6% 4% 2% 0% 2001 2002 2003 2004 2005 Operating Expenditures and Grants in millions 150,407,365 111,224,369 NET ASSETS Unrestricted Permanently restricted 1,086,569,223 2,064,106 1,022,091,241 2,063,423 TOTAL NET ASSETS 1,088,633,329 1,024,154,664 $1,239,040,694 $1,135,379,033 TOTAL LIABILITIES AND NET ASSETS $50 $40 Millions TOTAL LIABILITIES $30 $20 $10 $0 2001 2002 Operations 2003 2004 2005 Grants and Scholarships Statements of Financial Position 51 THE SAMUEL ROBERTS NOBLE FOUNDATION, INC., STATEMENTS OF ACTIVITIES YEARS ENDED DECEMBER 31 REVENUES, GAINS AND LOSSES Interest Dividends Net realized and unrealized gains on investments Other miscellaneous program and royalty income TOTAL REVENUES, GAINS AND LOSSES 2004 $7,133,796 11,592,548 94,300,437 3,998,715 $8,717,349 10,463,764 113,518,070 3,588,880 117,025,496 136,288,063 EXPENSES Operations (Agricultural, Plant Biology and Forage Improvement) Grants Management and administrative Bond interest expense Provision for federal excise taxes Provision for possible losses on program-related investments Excess of additional pension liability over unrecognized prior service cost 35,064,745 7,911,353 6,187,324 2,185,707 1,562,032 -0(363,648) 34,492,614 11,589,175 4,111,288 693,325 520,829 63,867 1,174,756 TOTAL EXPENSES 52,547,514 52,645,854 REVENUES, GAINS AND LOSSES IN EXCESS OF EXPENSES 64,477,982 83,642,209 683 1,372,370 64,478,665 85,014,579 1,024,154,664 939,140,085 $1,088,633,329 $1,024,154,664 OTHER CHANGES IN NET ASSETS Net realized and unrealized gains on permanently restricted assets CHANGE IN NET ASSETS NET ASSETS, BEGINNING OF YEAR NET ASSETS, END OF YEAR 52 2005 Statements of Activities CORPORATE GOVERNANCE Institutional Governance The Noble Board of Trustees desires the highest standards of corporate governance practice and ethical conduct by all trustees and employees of The Samuel Roberts Noble Foundation. Consistent with these intentions, the Board adopted the following Statement of Principles in 2005: We, the Board of Trustees and the employees of The Samuel Roberts Noble Foundation, acknowledge and agree that the following principles apply to our association with the Noble Foundation and the activities we conduct on behalf of the Noble Foundation: (1) The Noble Foundation exists because of the vision and generosity of our founder, Lloyd Noble. (2) We are stewards of the resources and the vision of Lloyd Noble. (3) Our conduct will be fair and honest, and our activities will adhere to the purposes for which the Noble Foundation was established. Role of the Board The Board charts the strategic direction of the institution and focuses the organization to carry out its charitable purposes, to act as a good steward of its resources and to conduct and support activities in accordance with the vision of Lloyd Noble. The Board delegates the conduct of the day-to-day affairs of the organization to the president and chief executive officer. The president is responsible for implementing and executing operations to support the Board’s strategy. The Board is responsible for the appointment and evaluation of the president and chief executive officer. Independent Professional Advice The Board, each Board committee and each trustee have the right to seek independent legal and other professional advice, at Noble’s expense, concerning any aspect of Noble’s operations or undertakings. This right enables each trustee to seek independent counsel concerning any aspect of the institution’s operations and financial reporting. Trustee Education The Board maintains a program for new trustee orientation and continuing trustee education. Board Committees and Audit Oversight The Board maintains four permanent committees: Executive, Audit, Compensation and Investment. The Audit Committee is responsible for assisting the Board in fulfilling its responsibility to oversee the integrity of Noble’s financial statements, auditor qualifications and independence and the performance of Noble’s internal financial controls and processes. The Audit Committee further addresses and investigates, when appropriate, employee allegations concerning institutional compliance with legal, regulatory and internal requirements. The Audit Committee regularly meets with Noble’s independent financial auditors. All trustees may attend any Board committee meeting. New trustees, including advisory trustees, are provided both historical information and information regarding current operations. New trustees are provided an opportunity to meet Noble officers and other employees, tour Noble facilities and farms and meet with Noble’s independent auditors. The Board encourages each trustee to continue his or her education throughout the trustee’s term. Noble hosts seminars, programs and other events providing continuing trustee education. Each trustee also is encouraged to attend, at Noble expense, external educational programs that concern exempt organizations, corporate governance, grant making and administration and other matters relevant to Noble programs. Conflicts of Interest The Board of Trustees’ Conflicts of Interest Policy sets out a procedure to disclose, identify and address potential trustee conflicts of interest. The Board, in adopting such policy, acknowledges and agrees that each trustee must at all times act with transparency and in the interest of Noble as a whole. Board Evaluation Annually, the Board completes a board evaluation, and each Board committee completes a committee evaluation. The results of all evaluations are compiled and presented to the full Board for review and discussion. Corporate Governance 53 MANAGEMENT Left to Right: Michael Cawley President and Chief Executive Officer Elizabeth Aldridge Corporate Secretary and Executive Assistant to the President 54 Patrick Jones Vice President, Chief Financial Officer and Treasurer Steven Rhines Vice President, General Counsel and Director of Public Affairs Wadell Altom Director, Agricultural Division Richard Dixon, D.Phil., D.Sc. Director, Plant Biology Division Joseph Bouton, Ph.D. Director, Forage Improvement Division Kevin Staggs Director of Information Systems Pat Weaver-Meyers Head Librarian Teal Pemberton Director of Human Resources Judy Newman Director of Guest Services Donna Windel Director of Granting Robert Geurin Assistant Secretary, Treasurer and Director of Facilities Robert Williams Safety Manager John Snelson Director of Aviation and Security 55 BOARD OF TRUSTEES Left to Right: Michael Cawley Ardmore, Okla. Bill Goddard Ardmore, Okla. Marianne Rooney Oklahoma City, Okla. James Day Sugar Land, Texas John Mullet, Ph.D. College Station, Texas Randolph Brown, Jr., M.D. Oklahoma City, Okla. William Thurman, M.D. Coupeville, Wash. 56 Susan Brown Dallas, Texas Cody Noble Ardmore, Okla. Maria Noble Atlanta, Ga. Russell Noble Ardmore, Okla. Shelley Dru Mullins Vancouver, British Columbia, Canada Vivian Noble DuBose Atlanta, Ga. Sam DuBose Atlanta, Ga. 57 FEATURE PHOTO CAPTIONS Page 1 Tall fescue is one of Noble’s target species for improvement through research and application by its Plant Biology and Forage Improvement divisions. Page 30 Dr. Zeng-yu Wang, who leads the Forage Improve- Page 14 Cow-calf production is the prevalent agricultural Page 38 The Forage Improvement Division’s Dr. Malay Saha presents an overview of his lab’s work to the division’s nonresident fellows. Part of the nonresident fellows’ role at Noble is to evaluate each principal investigator’s research program. enterprise in the Noble Foundation’s service area, a 100mile radius of Ardmore. In order to offer its cooperating cattle producers a higher level of service, Noble’s Agricultural Division has developed an intensive new program — Integrated Beef Production System — for producing source-, process- and performance-verified cattle. Page 22 Postdoctoral fellow Dr. Jin Nakashima studies transgenic alfalfa plants in a Noble greenhouse. Noble scientists are working to “redesign” alfalfa to incorporate beneficial traits such as improved digestibility, reduced bloat potential and fungal disease resistance. 58 Feature Photo Captions ment Division’s tissue culture and genetic transformation program, examines transformed plants in a lab growth chamber. Wang’s lab plays a key role in Noble’s production of transgenic forage plants with improved agronomic traits. Page 40 A sunset view of the Oklahoma History Center showcases its striking exterior. The 215,000-square-foot building is set on 18 acres across from the State Capitol in Oklahoma City. GENERAL INFORMATION The Samuel Roberts Noble Foundation, Inc. 2510 Sam Noble Parkway Ardmore, Oklahoma 73401 USA Telephone: (580) 223-5810 On the Internet: www.noble.org © Copyright 2006 by The Samuel Roberts Noble Foundation, Inc. All rights reserved. General Information 59 Ed Noble and Ann Noble Brown, Lloyd Noble’s two surviving children and Noble Foundation trustees emeriti, with a bust of their father that was unveiled at the Noble Foundation’s 60th anniversary gala in Ardmore on Oct. 13, 2005.