THE MONTANA DEPARTMENT OF AGRICULTURE 



Prior to a major reorganization in 1977 the Department of Agriculture functioned mainly as a regulatory 

 agency. Restructuring enabled the Department to perform its regulatory responsibilities more efficiently and to 

 enhance its duties to promote and encourage agriculture in Montana. The reorganization plan called for the Depart- 

 ment to enter the eighties with a posture of better serving Montana agriculture. 



The Department Director is responsible for administration of the Department's 4 million dollar annual bud- 

 get and its 83 full time and 10 seasonal positions. He oversees the Department's three divisions and six units. 

 The function of each division and unit is summarized here below. 



Centralized Services Division performs technical fiscal and administrative support functions for the De- 

 partment. Activities are for internal operations. 



The Environmental Management Division is responsible for the registration of 3,000 pesticide products; 

 the certification and licensing of 2,500 commercial applicators and dealers, and some 10,000 private applicators; 

 enforcement of the pesticide act and rules; providing technical environmental services to agriculture; providing 

 for an evaluation of pest management problems and programs; and providing analytical laboratory and consultative 

 services to other agencies and the public. 



The Plant Industry Division is responsible for the administration and enforcement of regulatory laws 

 controlling the production, manufacturing and marketing of agricultural commodities exported from or distributed 

 within Montana. The division investigates consumer complaints; performs technical inspections and surveys; issues 

 federal -state grade certificates; and provides regulatory technical expertise for and licenses 5,000 bee yards, 

 550 nurseries, 650 feed dealers, 450 fertilizer dealers, 350 seed dealers and 250 grain merchandisers. The division 

 also certifies some 2,000 commercial feed products and 1,000 fertilizers. The division's grain laboratory in Great 

 Falls provides the only official grain grading services in the state. 



The Marketing Unit identifies major needs and establishes priorities in marketing to facilitate the order- 

 ly flow of the state's agricultural goods to market. From the generated data, the unit develops and publishes 

 statistics describing Montana agricultural transportation. The unit works to coordinate marketing from the producer 

 to the consumer. 



The Montana Crop and Livestock Reporting Unit, a joint federal/state service, prepares estimates and re- 

 ports of production, supply price, and other items necessary to the orderly operation of farm markets. The reports 

 include statistics on field crops, cattle hogs, poultry and related products. Other estimates concern prices re- 

 ceived by farmers for products sold and prices paid by them for commodities and services. Montana county and some 

 special statistics are developed through the Federal/State Cooperation Agreement. These county statistics are 

 published biennially in the "MONTANA AGRICULTURAL STATISTICS" bulletin. 



The Wheat Research and Marketing Unit is responsible for promoting and encouraging intensive scientific 

 and practical research in all phases of wheat culture, production and marketing under the guidelines and policies 

 developed by the Wheat Research and Marketing Committee. For fiscal year 1983-84 the Unit has contracts totaling 

 $405,600 with Montana State University for work in areas such as barley improvement, disease control, the AGNET 

 program, insect control and cropping practices. For foreign market promotion the Unit pays a $250,300 membership 

 fee to U.S. Wheat Associates to maintain Montana as one of thirteen partners in the association's foreign market 

 development efforts. The Unit also assists in providing Montanans agricultural statistics and food and feed develop- 

 ment funds. 



The Hail Insurance Unit administers the State Hail Insurance Program under guidelines and policies de- 

 veloped by the State Board of Hail Insurance. In 1982, Montana producers purchased 2,139 policies from the Unit 

 worth a record $25.3 million dollars in coverage against hail damage. The Unit's success is evidenced by the fact 

 that both the amount of risk coverage and number of policies purchased have increased each of the past several years. 



The Alfalfa Seed Unit is responsible for improving the culture and production of and expanding the mar- 

 ket for alfalfa seed grown in the state. This unit was established by the 1982 Legislature. 



The 48th Montana Legislature created a new program to assist beginning farmers in the Department of 

 Agriculture. The intent of Senate Bill 316 is: 



"...an act to help farmers and ranchers obtain credit at lower rates for agricultural purposes. . .and 

 provide an income tax deduction for certain land sales to beginning farmers... 



"The purpose of this act is to assist beginning farmers with financial support and encouragement by 

 making low interest rate loans available to eligible farmers and by providing incentives to retiring 

 farmers who sell their land to eligible beginning farmers." 



Senate Bill "316, effective October 1, 1983, establishes a nine-member loan authority (quasi-judicial board) 

 appointed by the governor. The agricultural loan authority, through the Department of Agriculture, provides for 

 issuance of bonds to provide qualified and approved applicants financing for purchase of land or depreciable property. 

 Senate Bill 316 provides for an income tax deduction for land sold to beginning farmers. 



"A landowner who sells land consisting of 80 acres or more to a beginning farmer at 9% or less interest 

 on a long-term contract is entitled to a reduction in his taxable income in an amount equal to 100% 

 of any income or capital gain, or both, realized and other subject to state income taxes from the sale, 

 up to a maximum of $50,000, provided the transaction is first approved by the authority for this pur- 

 pose." 



The Rural Development Unit provides financial assistance to help young farmers and ranchers get started in 

 agriculture. The program was originally funded by federal rural rehabilitation funds. Total assets now are $1.5 

 million. Proceeds from the 220 active loans pay for program administration and provide funds for future loans. 



Assisting the state's number one industry is a formidable task. Hopefully, this brief look into the De- 

 partment of Agriculture will help you understand how it is serving Montana agriculture. 



