Sustaining Agriculture in Montana's Communities

The Challenge

Montana's agricultural communities face myriad challenges. Farmers and ranchers grapple with high fixed costs, volatile commodity prices, fluctuating consumer demand and in some areas of Montana, skyrocketing land prices. As some ranches and farms grow through corporate consolidation, many working family ranches, ranging from small to large operations, are lost under a stranglehold of financial pressures. Unable to make a living off the land, many farmers and ranchers are forced to convert their property to non-agricultural uses. Much of this conversion comes in the form of residential and commercial land development to meet the needs of a booming housing market. This is a particularly important issue for parts of Montana experiencing exceptional growth, such as the Gallatin Valley, as residential subdivisions generally use more resources than are paid in taxes, compared to farms and ranches. Overall, agricultural communities use roughly twenty-five cents worth of public services for every dollar they pay in taxes, compared to rural subdivisions, which utilize significantly more services for every tax dollar.

The disappearance of Montana's working lands and the resulting division of these lands for urban development has many injurious consequences. For Montana ranchers and farmers, there is the painful loss of generations of family labor and accomplishment. The years of investment, unseen by most of us, that goes into a working rural landscape - into the land, structures and land practices - are forever lost. For Montana's rural communities, failing agricultural enterprises deal a blow to economies and the sense of place and traditional culture at the heart of the West. Finally, when agricultural lands are permanently lost to development, diverse ecosystems, landscapes and wildlife habitat, particularly critical riparian areas, likewise disappear. In order to sustain agriculture in this changing landscape and economy, agriculture must be viewed as an integral component of Montana's economic development. The agriculturalists that successfully maintain their way of life and prosper are those who can adapt to challenging circumstances and new forms of agricultural development. Farming and ranching continue to be a critical component of many rural communities; more food producers must be connected to consumers in Montana's urban areas to assure longevity.

Changing the Way We Teach

Agricultural teaching and research institutions traditionally teach the nuts and bolts of agriculture: soil and crop science, horticulture, animal science, food and life science. Yet to prepare a new generation of farmers and ranchers for success in the marketplace, institutions should reach beyond their traditional agenda, to better address whole-systems questions that emerge in today's agricultural economy. A holistic education that incorporates themes on the ever-evolving and complex agricultural marketplace could include coursework in computer technology, marketing, economics and communication.

Moreover, if real meaning is provided to the widely used term "sustainable agriculture", ecological imperatives must be taught, understood and embraced by emerging producers, who must also understand consumer demands and how to effectively meet and profit from those demands. Future producers interested in this type of agriculture must have opportunities to learn how to develop, produce and promote their goods in such a way that public health concerns and sustainable food production practices are marketed alongside considerations of convenience, quality and price. Key components of this training are ecological production systems, market research skills, product certification, labeling and branding, an understanding of product quality, consistency and continuous supply.

Perhaps most importantly, future agriculturalists must have the skills to respond to the needs and preferences of customers, receive and incorporate feedback from buyers, customers, and retail purchasers. By listening to the discerning buyer, a farmer or rancher can refine a product and identify the best way to appeal to a target audience. The development and support of cooperative for food processing and distribution of final products assist farmers and ranchers in meeting consumer needs.

The Trap of One-Stop Food Processing

Though today only fifteentwenty percent of the food consumed in Montana is grown in state, in 1950, seventy percent of the food Montanans ate was grown in Montana. Current transportation and centralized food processing systems are major impediments to community-based economies. Many producers must drive several hours one way to slaughter and process their meat; subsequently, the majority of Montana's beef and lamb is shipped out-of-state for processing. The heavily subsidized U.S. transportation system and centralized food processing centers are major issues to tackle, but tenable solutions lie in reach locally. For example, after taking a hard look at the current infrastructure, its capacity and missing links, a broad-based group of meat producers, supported by a coalition of Montana non-profits, including the Montana Farmers Union, Lake Community Development Corporation, Alternative Energy Resources Organization (AERO) and the National Center for Appropriate Technology (NCAT) successfully collaborated to pass legislation during the 2005 Montana Legislature that provides stock growers the right to use mobile, inspected slaughter plants in Montana. This success is key in meeting one of the primary goals of the coalition and many Montana farmers and ranchers: to make community-based food systems a cornerstone of Montana's economic development policy.

Procurement Policies and the Institutional Marketplace

In the 1930's and 40's, food processing was our state's number one employer. After World War II and the advent of cheap, subsidized transportation infrastructure and fuel, Montana grown and raised food began to leave state borders for processing. Today, most conventional foods bought in a grocery store travel an average of 1,500 miles before arrival on the shelf. Although Montana's food processing industry is not currently the economic engine it once was, there exists substantial opportunity to grow this component of Montana's economy. Towards this effort, a broad-based coalition of food producers, collectively known as "Grow Montana", attempted to pass legislation to change state food procurement practices to support Montana-based food production and processing. This purchasing measure was intended as a longterm boost to Montana grown and raised food. Despite bi-partisan support, this bill did not pass the 2005 Montana Legislature appropriation process.

Yet there is much to gain from buying home grown and processed Montana food. Fifty-one percent of all food consumed in Montana is served by public "institutions", such as restaurants, schools, hospitals and prisons. State, public institutions in Montana purchase about $12 million of food annually, with colleges and universities already beginning to implement local purchasing programs. A successful example of this market at work is the University of Montana-Missoula "Farm to College" program. Through an agreement with local and area food producers, the University of Montana Food Service purchases food directly from Montana farmers and ranchers and food processors. This process requires extra effort on the part of the University, for it is easy and cheap to buy from large, national food vendors. But the effort reaps long-term benefits. For the University of Montana, students are served fresh, high quality and even superior products; for local farmers, ranchers and community-based food processors, a reliable, larger-scale market sector is available.

Increasing producers' access to this type of institutional market by twenty- to twenty-five percent could go far in sustaining the agricultural economy of this state. The key is connecting more Montana farmers and ranchers to these markets. While it is difficult for producers to get their products into a Wal-Mart or Safeway chain, the institutional marketplace demonstrates an underutilized market sector with tremendous capacity for growth for Montana products. This market sector is significant enough to justify an investment in new statebased food processing facilities and other infrastructure and should be considered an integral part of a Montana-based solution to provide lasting economic development opportunities for our rural communities.

Towards this effort, the Grow Montana coalition are currently assessing the public institutional food markets in Montana communities and State agriculture's capacity to serve those markets. In addition, the Grow Montana project will take an in-depth look at the University of Montana's Farm to College program to understand the details of how a real-life segment of the local-food institutional market functions. Finally, the analysis will take its resulting findings and strategic action plan to fifteen communities around the state. Presentations to the local agricultural, business and economic development communities and local public institutions will seek input on the project results and the formation of an action plan within local contexts.

Product Diversification and Niche Marketing

In order to survive the current economic reorganization, many food producers will have to rethink the way they manage and market their resources. Some may have to consider diversifying into nontraditional ranching and/or farming activities, such as tapping into the demand for hospitality and recreation services, creating small ranch-based businesses, and experimenting with ways to reduce production expenses, while improving the health of agricultural lands.

The development of specialty and branded product lines for niche markets is also a growing sector. Niche products differ from conventional products by characteristics such as how the items were produced, and product quality and price. Niche market items such as organic cereals, "predator friendly" wool or antibiotic/hormone free beef, appeal to a particular segment of the consumer market and command a premium price for guaranteed standards and higher quality. Under successful niche marketing practices, producers stand to improve their profits and receive compensation for sustainable management practices, while consumers are able to purchase quality products that reinforce their basic social and environmental values. Niche markets can help local producers capture more of the consumer market and regain some of the market and product distribution, specifically if producers own part of the marketing processing and distribution.

Industry strategies to capture growing export markets for existing products may help alleviate financial difficulties. However, competing with other agricultural commodities and relying on unstable export markets are only partial solutions. Diversification is key. Product diversification can provide Montana ranchers and farmers the opportunity to develop new sources of income by capturing a larger value-added component of commodities they already produce. Equally important, product diversification can connect producers to new markets that may revitalize existing operations. The niche marketing of agricultural goods can provide the opportunity to create economically and ecologically sustainable agricultural traditions adapted to today's West. Making the link between healthy landscapes, economies and agriculture is part of this strategy.

Agriculture Support Programs

Without subsidies, Montana's net farm income frequently drops in the negative numbers, especially during drought years. Under the current subsidy framework, the incentive for producing commodities is substantial, locking family farms into monoculture production. However, there do exist alternatives to production as usual. Innovative federal, state and private programs can and do support Montana agriculturalists; programs is the assurance of adequate funding to ensure sustainability. One assistance program at work in Montana is the Department of Agriculture's "Growth through Agriculture" program, which creation of valueadded agricultural products and markets development. Through the development of value-added products for Montana owned enterprises, more economic value remains in the hands of Montana producers. Through grant assistance and loan programs, Growth Through Agriculture assists Montana beef producers to develop innovative marketing strategies for niche markets, and assists farmers interested in developing alternative fuels from agricultural waste products. This program, dependent on appropriations of the Montana Legislature from the State's coal tax trust, faces the continual threat of budget cuts. Putting public resources towards sustainable agriculture, local food production and food security for Montanans are sound investments.

Non-governmental organizations also play an important role in helping to foster coexistence with the land, in tandem with food production. One example is a unique collaboration between the Madison Valley Ranchlands Group, an association of ranchers in southwest Montana, and the Bozeman-based Predator Conservation Alliance. The Madison Valley has experienced a large share of conflicts between livestock and wolves. This partnership is based on a simple premise that has far reaching benefits: The presence of people near livestock can help prevent wolves from attacking cattle, sheep, and other domestic animals. In 2004, the first year of the program, Predator Conservation Alliance and the Madison Valley Ranchlands Group hired, paid, and trained cowhands in non-lethal methods to keep wolves and livestock apart. These "Range Riders" remained with livestock twenty-four hours a day throughout the grazing season, and ran off any wolves that came near the cattle. The project's first season was successful; no livestock were lost, and no wolves were killed. Another example of successful community collaboration is a project of Billings-based Northern Plains Resource Council, its affiliates, the Bull Mountain Land Alliance and the Yellowstone Valley Citizens Council and the Good Earth Market. This collaboration works to build market demand for locally grown and processed Montana foods, through public education efforts and recognizing local food producers and processors.

Keeping the Economic Benefits at Home is Key

Although the state's agriculture market has long been commodity driven, expanding value-added opportunities for local food economies is critical to sustaining our local communities. Through the processing and consumption of homegrown products here in Montana and shifting the existing subsidy program from a commodity driven to quality driven agenda, Montanans can maintain farming and ranching on the landscape. Montana's ranching and farming traditions will continue to play an integral role in the state's economy and in the foundation of our communities. Required in today's economic reality are innovation, diversification, cooperation and communication between producers, consumers, local and state elected leaders, government officials and rural and urban communities. A key component to ensuring that our state's agricultural heritage is sustained is the assurance that the economic value of Montana food production and processing remains in the hands of Montanans.

National Center for Appropriate Technology
PO Box 3838, Butte, MT 59702
(406) 327-0705
energyassistance@ncat.org

Alternative Energy Resources Org.
432 N. Last Chance Gulch, Helena, MT 59601
(406) 443-7272
aero@aeromt.org

Northern Plains Resource Council
2401 Montana Ave. #200, Billings, MT 59101
(406) 248-1154
info@nprc.org

Montana Department of Agriculture
P.O. Box 200201
Helena, MT 59620-0201
(406) 444-3144
agr@mt.gov

Matheson, Nancy. 2000. "There's no taste like home." Montana Magazine. 159:38-45.