and about average, and the drouth area of east central and southeastern Montana 

 was below both last year and average. Crop production for the state as a whole 

 in 1926 exceeded that of 1925 by about 5 per cent. 



LIVESTOCK SHIPMENTS SHOW BIG INCREASE 



Because of increased market supplies of sheep and lambs and the large 1926 

 lamb crop, shipments of sheep and lambs have greatly exceeded those of any year 

 since the war. Short feed supplies undoubtedly contributed to marketings which 

 were somewhat larger than potential supplies indicated and resulted in some 

 reduction of inventory numbers. Approximately 1,720,000 sheep and lambs were 

 shipped out in 1926 compared with 967,000 head in 1925. 



CATTLE SHIPMENTS 



While potential market supplies of cattle in 1926 did not equal those of 1925, 

 which were considered the largest of any normal year actual shipments of cattle 

 and calves aggregated 504,000 head against 407,000 head in 1925. Drouth and 

 short feed supplies in eastern Montana and to some extent in other sections have 

 been partly responsible for the very large 1926 shipments. A large 1926 calf 

 crop offsets to an extent the heavy 1926 marketings and prevented a very serious 

 reduction in inventory numbers. 1927 marketings will probably be smaller than 

 1926 and contain a larger than usual percentage of young stuff. 



WOOL PRODUCTION 



Wool production in 1926 was 23,672,000 pounds or an increase of about thir- 

 teen per cent compared with 1925. An increase both in numbers shorn and the 

 average weight per fleece accounted for the increase. Wool prices in 1926 were 

 somewhat below those of 1925 and well below those of 1924. 



DAIRY INDUSTRY GAINS 



A further increase in the production of dairy products in the state appears 

 to have come about largely through increased efficiency of the "dairy herd. The 

 monthly survey of milk production, conducted through crop correspondents, for 

 the period April to November inclusive, when compared with the same period in 

 1925, shows a gain of 1.2 per cent in the average number of cows, milked in the 

 herd in 1926 and an increase of 4.6 per cent in the average production per herd, 

 offsetting a slight decrease in the average total number of cows in the milk herd. 

 Prices for dairy products in 1926 averaged slightly better than in 1925. 



PRODUCTION AND PRICE CHAiNGES 



Against an aggregate total production of Montana crops in 1926 that exceeded 

 1925 by about five per cent, farm prices by the end of the 1926 season had, in 

 most cases, worked to lower levels than in 1925, offsetting to some extent the 

 production gain. However, compared with the averages of the period 1920-1924, 

 both prices and production in 1926 have been mostly above these averages. 



CHANGES IN NUMBERS OF FARMS 



No complete data are available concerning the changes in numbers of farms 

 that have occurred since the federal farm census of 1925. At that time 46,904 

 farms were enumerated compared with 57,677 farms enumerated in 1919. During 

 this period the number of farms operated by owners decreased from 50,271 in 1920 

 to 36,379 in 1926, while the number of tenant farmers increased from 6 507 in 

 1920 to 10,027 in 1925. The period covered by these changes reflects the post-war 

 adjustments, which in Montana were made more drastic by reason of the drouth 

 and heavy losses of 1917, 1918 and 1919. It is generally believed that by 1925 

 the downward trend in numbers of farms had been checked, and that since then 

 the tendency has been that of an increase. Some new settlers during the past 

 two years have come into eastern Montana and into extreme western Montana, 

 but definite figures on this movement are not yet available. 



TREND OF LAND VALUES 



Average values of Montana farm lands in 1926 made some recovery from 

 the low points reached in 1925, but are still far under the averages attained 

 during the war period. Comparison of 1926 values with preceding years is shown 

 in the following table which is based on reports made each March by crop cor- 

 respondents in Montana. 



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