ESTIMATED FARM SALES 5 



the risk incurred by the large percentage of crop acreage in wheat, with a more 

 diversified farming and livestock, wheat by reason of its adaptability to Montana 

 conditions will continue to be an important factor in the total farm income for 

 a long time to come. 



Meat cattle contribute the next largest share of the farm income aggregating 

 19 million in 1924 and 26 million in 1925. During the past five years preceding 



1925 the cattle industry has been weathering a period of low beef prices and 

 relatively high production costs. The improvement in beef prices averaging about 

 50 cents per hundred, that came in 1925, made a very noticeable improvement in 

 the cattle industry. The first reaction of Montana cattlemen was to greatly in- 

 crease marketings. Just what the tendency will be toward re-stocking and building 

 up herds is still uncertain and will doubtless be influenced by the future trend of 

 beef prices. At present levels the industry would appear to be turning over to a 

 profitable basis and there is some indication that the general level of prices during 



1926 will average near that of the past season. Comparatively the situation of the 

 cattle industry is now better than in any year of the post war period, with both 

 the immediate and long-time outlooks more favorable than in any recent year. 



The third largest contributor to farm income is the sheep industry which 

 combining marketings of both sheep and wool returned about 15 million dollars 

 in 1924 and about 20 million dollars in 1925. The sheep industry has now enjoyed 

 almost four years of favorable prices for both wool and lambs, and while much 

 of the returns during the first half of this period were needed to liquidate old 

 indebtedness and to finance replacements after the severe deflation of 1920, it was 

 generally believed that by 1924 the industry was in a relatively prosperous con- 

 dition. If anything 1925 has added to the prosperity of the sheepman and while 

 the outlook for 1926 is not considered so favorable as 1925, it is generally expected 

 to be a good year. The national outlook, as judged by the United States Bureau 

 of Agricultural Economics, contemplate's a gradual slackening in demand for both 

 lambs and wool into 1926 and 1927, admitting, however, that there could be a 

 further increase in lamb and wool production in some sections at a profit, over 

 alternative enterprises, even though such expansion should result in somewhat 

 lower prices. The present trend of lamb and wool prices (January, 1926) is 

 somewhat lower than that of a year ago. 



Among other contributors to farm sales is the flax crop which is a valuable 

 cash crop in the eastern and northeastern counties where it is chiefly grown. 

 Other special crops grown largely in concentrated areas are sugar beets, beans, 

 peas, and alfalfa seed. The aggregate of these crops runs into many millions of 

 dollars annually and the returns are concentrated into relatively small areas. 

 The trend of production of such crops has been upward and in most cases 1925 

 income from sales has exceeded those of 1924. 



GEOGRAPHIC DISTRIBUTION OF INCOME 



Although the state total of sales of both crops and livestock is only 2 million 

 dollars less than in 1924, differences in the two years in the various crop districts 

 of the state show a greater variation due to the mixed changes as between crops 

 and livestock sales within the districts. In the grain sections in 1924 farm 

 income was larger than usual due to a large wheat crop and a better than average 

 price. In the western third of the state income was reduced by a severe summer 

 drought which curtailed production of all principal crops and to some extent 

 reduced returns from livestock due to the poor condition of ranges. In 1925 this 

 area enjoyed a very favorable season, marketing larger crops generally with the 

 exception of apples and having a generally better return from livestock products. 

 The east central and southeastern districts, while showing a relatively large 



