Sheepmen are apparently still expanding their holdings in many instances 

 of both sheep and lands. The improvement in wool prices over those of 1927 has 

 encouraged this trend, as well as the relatively firm lamb prices compared with 

 a year ago. Both wool and lambs on this basis, and considering the larger pro- 

 duction, have made a somewhat larger aggregate return to sheepmen in 1928 than 

 in 1927. 



The dairy industry reacted to the high meat prices of cattle this year in a 

 further heavy marketing of cows of canner and cutter type. As a result, total 

 dairy production of milk and butterfat slightly declined, although the manufac- 

 tured products show a small decline in butter production that is more than off- 

 set by increased manufacture of ice cream and cheese. The relatively higher 

 prices for dairy products compared with 1927 and sales of meat animals brought 

 about a moderate increase in the returns to the industry compared with the 

 preceding year. 



The large increase in 1928 hog marketings over 1927 and the advancing prices 

 during the second half of the year have resulted in a larger gross return to hog 

 growers which with cheaper feeds have made this class of livestock relatively 

 profitable in 1928. 



Poultry growers also encountered average prices during 1928 that were 

 slightly higher than in 1927, with some increase in production over that of last 

 year. 



THE YEAR IN GENERAL 



The year in general for Montana agriculture was marked by somewhat lower 

 money returns to growers for farm crops and an offsetting increase in money 

 returns for livestock and its products, as compared with 1927. Following as it 

 did, the large gross returns to agriculture in 1927, the year 1928 was not called 

 upon to absorb old indebtedness to the same extent as was the case in 1927, which 

 followed the relatively poor season of 1926. On the whole, therefore, farmers 

 and stockmen have had more buying power in 1928 than in 1927, which fact is 

 generally supported by reported sales of farm machinery and equipment, as well 

 as general business reports. 



Montana agriculture has entered 1929 in a financial condition on the whole 

 at least as favorable as that of a year ago. Nineteen twenty-nine crops and 

 prices as the season develops will become factors influencing this condition. It 

 is yet too early to judge these prospects. On the other hand, fall moisture in 

 1928 was very short compared with that preceding the seasons of both 1928 and 

 1927, necessitating that spring growing conditions and moisture accumulations 

 before and during the growing season of 1929 be compensating, if as favorable 

 a season is to result in 1929 as in the preceding two years. 



Commitments of farmers in anticipation of 1929 crops should not necessarily 

 be any larger than those made in the spring of 1928. 



On the livestock side there is relatively more stability in the 1929 outlook. 

 Cattlemen and sheepmen under average conditions affecting range feed next 

 spring and summer may look ahead to a year not greatly dissimilar with that 

 through which they have just passed. Cattlemen may restrict their 1929 market- 



