Way of Life on the Brink of Disaster in Montana

Mike Williams hasn’t sold a big $100,000 farm tractor or combine in three years; his implement dealership used to sell from four to nine a year. It’s been more than a year and a half since he’s even taken home a paycheck.

Williams, now living off his savings, has whittled down his inventory, laid off workers and asked himself, at the end of a long day, if he’d be better off just walking away.

“Some days I look out the window and wonder, ‘Is it worth it?’” he said. It’s become a matter of survival for small-business owners like Williams and countless others across drought-stricken north-central Montana. The farmers and ranchers who once loyally bought cars, combines and chemicals now are holding tight to what money they have--or seeking better deals in bigger cities.

Implement and feed dealers and the farmers they support are feeling the effects of four years of drought and a reeling agricultural economy. And another drought year is taking shape.

Once optimistic, many farmers seem resigned to another terribly dry year. Recent snowstorms have helped some but promise no immediate end to dry conditions. Rivers and reservoirs hold less water than normal, wells and springs have gone dry, mountain snowpack is lagging, and dry Montana soil is being blown away.

So, as farmers survey wheat fields of dust and ranchers walk pastures grazed to the nubs, difficult choices are being made. Some have sold out, purging cattle herds built up over generations. Others are trying to diversify, a risky move rich with debt. Still others are preparing to head for the fields, aiming for another year in business and praying for rain in a state just declared a drought disaster area, once again.

“I can hang on for a while. The question is, do I want to?” asked 37-year-old wheat farmer Pat Dailey of Chester, Mont. In the region’s towns, there are vacant storefronts, quiet Main Streets, seemingly constant chatter about rain--or at least the hope of rain. Sometimes, hometown service is provided with a forced smile.

Local leaders are seeking ways to diversify their towns’ agriculture-driven economies. But, as Havre Mayor Bob Rice said, “The problem here is, we’ve lived on agriculture so long, the way the farmers and ranchers go is the way the city goes. And that’s not good right now.”

About 80% of Fort Benton’s businesses are agriculture related, officials said. The town and Chouteau County watched its last implement dealer close last spring, leaving farmers and ranchers to drive 40 to 100 miles for parts or equipment. Chester, across the county line, lost its dealer last fall. Roger Axtman, whose family ran Axtman Farm Equipment Inc. at Fort Benton, said the business lost about 60% of its customer base over five years.

“We weren’t taking home any wages,” said Axtman, who now works at a real estate agency. “When you have no money coming in, it’s better to be working for somebody else.”

At Power Motors, one of two dealers of new and used cars and trucks at Fort Benton, sales are slow and loyal customers are thinning, said office manager Cecilia Dostal.

“Some people would order new vehicles every year or so, and no longer,” she said. “We used to have loyal customers. Now, they go to six or seven places for deals.”

Fewer customers come through Ed Lehman’s hardware store in Fort Benton. They spend less than they once did, forcing him to reduce inventories of frying pans and hammers or simply eliminate items. He has opted to diversify in hopes of drawing in customers, adding paint and plumbing supplies, appliances and furniture. It’s a gamble.

“I hope we won’t have to close it,” Lehman said. “The bank might close it.”

Customers prowl aisles of cards, souvenirs and crafts while awaiting their prescriptions at the Benton Pharmacy, the only one left in Chouteau County. On a recent Monday evening, the dinner rush at Bob’s Riverfront consisted of six diners.

“People are uptight, stressed. We still have bills to pay,” owner Robert Knox said.

Mike Novak does not foresee imminent layoffs at his Chester travel center--a grocery, gas station and Subway sandwich shop. But the prospect keeps him awake some nights. For many of his 30 employees, work there is the only family income.

“You get sick in the stomach to know your business could fail,” Novak said. But, “there are a lot of circumstances beyond people’s control. They just need to realize they have to do the best they can.”

Farmers’ efforts to reduce expenses has exerted a strain on local businesses, said Michael Walstad, a vice president at Heritage Bank at Chester. Loans are available. But, unlike farmers themselves, “there are no disaster payments.”

United Agri Products in Havre has had to expand its coverage area to find new customers, creating new expenses, said manager Arleen Rice. Chemical tanks stand on the lot, reminding Rice of her concerns with weeds or undernourished soil as farmers cut any possible corners to reduce expenses.

“It’s time to deal with harsh realities,” she said.