ASSESSING MONTANA'S KEY INDUSTRIES: Farming and Ranching: Navigating Another Drought.

• Author: Haynes, George
• Position: MONTANA ECONOMIC REPORT

Montana farmers and ranchers experienced a challenging year in 2021. Severe drought conditions throughout the state substantially lowered crop and hay yields, although lower levels of production were to some extent offset by stronger grain and cattle prices (Figure l). By October, 100% of Montana's land area was rated as severely dry or worse by the University of Nebraska's Drought Monitor--a first for the state in the 21st century.

Crop Production and Prices

Lower yields and a decline in planted acreage resulted in lower production for many wheat, barley and hay producers throughout Montana. While winter wheat planted acreage increased, total production of winter wheat decreased by 29%. Total production of spring wheat decreased by 71% as average yields declined by 55% and planted acres also fell. Production declines in wheat were offset by producers marketing stored grain--wheat stocks decreased by more than 50% from 2020 to 2021. Total production of barley decreased by 52% because fewer acres were planted and average yields were the lowest since 1953, declining by 40%. Similarly, alfalfa and grass hay production fell by 57% because of fewer harvested acres and lower average yields.

Wheat, barley and hay have been the most stable crops in Montana for several decades. However, since the early 2000s the number of acres planted to pulse crops (lentils, dry peas and chickpeas) has expanded, again eclipsing 1 million acres in 2021. However, total pulse production declined by 37% for lentils, 48% for dry edible peas, and 12% for dry edible beans in 2021.

Throughout Montana, substantial increases in the prices received for wheat, dry peas, dry beans and hay helped to offset the impacts on farm revenues of...