Industrial development and nonfarm employment for low-income farmers by Anthony M Grano
A THESIS Submitted to the Graduate Faculty in partial fulfillment of the requirements for the degree of Master of Science in Agricultural Economics
Montana State University
© Copyright by Anthony M Grano (1958)
Abstract:
Flathead County has an excess of farms in the low-productions classification. Nonfarm employment opportunities for operators and their families on these farms is one means of improving their incomes.
The range of employment alternatives needed was determined to be between 480 and 960 if the average income per farm was to be made equivalent,to that of the United States or to that of Montana.
Because of the surplus of children being born on farms that cannot be absorbed into agriculture, there arises the need for a program to utilize and develop the human resources of agriculture more fully. This can be done by providing either full or part-time employment opportunities.
Examination of the resources available in the County and their potential use showed that the employment opportunities could range from just a few jobs to over 1,000. This depends on the economic feasibility of these developments and upon which developments occur first. The most promising developments are considered to be in the forest, tourist, and agricultural industries.
The potential development of resources in the County is sufficient to provide the needed employment opportunities, and it was judged that a reasonable degree of development would provide 700 additional full-time jobs. If most of these jobs were in manufacturing type industries, the wage income for the
County would increase by two or three million dollars per year. At the same time, the farm income of the County would presumably be divided" among fewer people, thus raising the average income per farm.
The income levels of low-income farmers could be raised. Benefits would accrue to these farmers and their families and to other persons in the County in various ways. Certain processes of adjustment accompanying the changes in economic development occur in the form of size and type of farm operation.
Conclusions The conclusions of this study are in accord with the hypothesis presented in the beginning of this report. The findings indicate that with full development of resources, benefits accrue to the low-income farmer, the rural communities, the agricultural economy, and the County as a whole and their economic and social well-being is enhanced. This is the result of providing low-income farmers
With nonfarm employment opportunities through the development of new industries and expansion of existing industries.
Benefits accruing to the low income farmer are in the form of higher levels of living, including better education, better health practices, and economic stability and productivity. Adjustments in the size and type of farm operations may occur after resource developments.
Benefits accruing to the rural communities, the agricultural economy, and the County as a whole take various forms. The tax base is broadened in the County, resulting in better public services for all the population. Markets and market facilities become better developed and more efficient'. The amount of

capital is increased for both farm and nonfarm people, thus resulting in needed capital improvements on farms and in businesses. A larger proportion of the population is gainfully employed. The County as a whole becomes more stable and productive.
Impediments to the type of adjustments needed to attain these goals include the lack of technical knowledge, the lack of economic feasibility studies for industry in rural areas, and the lack of information on employment opportunities for rural people. Migration is hindered by the geographic and occupational immobility of older people. Better credit facilities for improvements on low-income farms are needed along with financial aid for promoting migration from farms.

INDUSTRIAL DEVELOPMENT AND NONFARM EMPLOYMENT
FOR LOW-INCOME FARMERS .
by
ANTHONY" M . GRANO y
Approved:
A THESIS
Submitted to the Graduate Faculty in partial fulfillment of the requirements for the degree of
Master of Science in Agricultural Economics at
Montana State College
Bozeman, Montana
September, 1958

4*
TABLE OF CONTENTS
LIST OF TABLES
ACKNOWLEDGMENT
PART I. I N T R O D U C T I O N ............................................
The Problem Situation ........................................
The Research Problem ........................................
Limitations of the S t u d y ....................................
O b j e c t i v e s ...................................................
H y p o t h e s i s ...................................................
P r o c e d u r e .....................................................
PART II. AVAILABLE RESOURCES, POTENTIAL INDUSTRIAL DEVELOPMENT
AND E M P L O Y M E N T .....................
Forest Industry ..............................................
Agricultural Industry ........................................
Mineral Industry ............................................
Power I n d u s t r y ..............................................
Tourist Industry ............................................
Other Service Industries ....................................
Labor F o r c e ...................................................
PART III. EMPLOYMENT, INCOME, BENEFITS AND ADJUSTMENT PROCESSES .
E m p l o y m e n t ...................................................
I n c o m e .......................................................
PART IV. SUMMARY AND
Summary .......................................................
C o n c l u s i o n s ...................................................
Further Research .........................................
A P P E N D I X ...........................................................
BIBLIOGRAPHY .......................................................
52
53
54
56
61
44
44
44
45
21
22
31
37
38
39
41
42 ii iv
I
I
11
16
17
18
18 i
131104

LIST OF TABLES
Number
I
II
NUMBER AND AVERAGE NET MONEY.INCOME OF FARM-OPERATOR
FAMILIES, CLASSIFIED BY THE. SIZE OF THEIR MONEY'
■........ ..
: ';Vr ,■
TOTAL NET INCOME PER FARM FOR MONTANA AND THE
Page
4
4
III
IV
V
NUMBER OF ALL. FARMS IN.THE UNITED ,STATES, MONTANA,
AND SELECTED MODERATE LOW-INCOME COUNTIES, VALUE OF ALL
FARM PRODUCTS SOLD BY SOURCE, AND AVERAGE GROSS RECEIPTS
I '. . . . .>■. ■.
NUMBER OF FARMS IN THE UNITED STATES, MONTANA, AND
SELECTED MODERATE LOW-INCOME MONTANA COUNTIES BY: '
ECONOMIC CLASS, 1954 '. . . v">: . .
PERCENTAGE DISTRIBUTION OF FARMS IN MONTANA, AND
SELECTED 'MODERATE LOW-INCOME MONTANA. COUNTIES, ACCORD­
ING T O ECONOMIC CLASS AND THE U.S.D.A. "LOW PRODUCTION"
CLASSIFICATION . . . v . . - V V .
5
6
7
VI
VII
1954 . . . . . . . . . . . . . . . . . . . . . . . . . .
ACRES. OF CROPLAND HARVESTED IN FLATHEAD COUNTY, 1954 . .
14
14
VIII
IX
VALUE OF FARM PRODUCTS SOLD BY SOURCE FOR FLATHEAD
.
. . .
AVERAGE GROSS' RECEIPTS AND TOTAL NET INCOME. FOR FARMS
IN THE UNITED STATES, MONTANA, AND FLATHEAD COUNTY,
1954 . '. .' .". . . . . : . . . .
15
16
X NUMBER OF MAN-HOURS OF EMPLOYMENT IN 1,000 BOARD FEET
OF LOGS . ' . . 'i . . . . . . . . . . . . . . . 26
XI
XII
'
EMPLOYMENT. BY IDEAL SIZE PLANT (FROM STUMP TO END
PRODUCT'OF PLANT) . . . ' . . . . . . . . V . V . . . .
'
'
ESTIMATED GROSS AGRICULTURAL PRODUCTION — FLATHEAD i .
. Ti
27
33

Number
XIII
XIV
XV
Page
:
.
ESTIMATED GROSS FARM INCOME, FLATHEAD COUNTY,
. ............ .
i ' T .......... 34
FRUIT AND VEGETABLE'S PRODUCED IN FLATHEAD COUNTY,
1949/AND 1954 . . . . . . . . . . . . ; . : . . . 34
NUMBER OF HIRED WORKERS IN FLATHEAD COUNTY, JUNE 30,
1958 . . . . .: '........ 43 ill

ACKNOWLEDGMENT
The author wishes to express appreciation for the aid and encourage­ ment extended by all those contacted throughout the course of his post­ graduate work.
The prevailing environment of 'the Department of Agricultural
Economics at Montana State College has'"been conducive to graduate study.
The professors, graduate colleagues and secretaries have been very help­ ful and tolerant.
Special thanks and appreciation is due Maurice C. Taylor for his
'guidance and assistance through the course of this study.
Appreciation is also extended to John C. Bower and Layton S,. Thompson for their timely criticisms and suggestions while serving on the thesis committee.
Any errors or omissions in this study are the responsibility of the author.
iv

INTRODUCTION
The Problem Situation
The general problem under consideration is that of the low level of income earned by a significant proportion of farm families in Montana.
This low-income problem was once again brought to our attention by
President Eisenhower in his 1955 State of the Union Message to Congress in which he made this general statement on Agricultural “Greater attention must be directed to the needs of the low-income farm families. Twenty- eight percent of our farm operator families have net cash incomes of less than $1,000 per year."
We should be concerned with the problems of these low-income farm families because in reality they affect all of us. They are potential customers for large quantities of goods and services produced by other segments of the economy, and these farms are a potential source of skilled
I workers and successful farmers. These people may try very hard to earn a satisfactory living, and yet in spite of their Efforts fail to share in the
!
nation's prosperity and^progress. If these low-income people were given equal opportunity to earn a good income and to become efficient producers, most o.f them would be eager to do so. But there are certain factors that create this problem situation, and these factors must either be removed or repressed before this opportunity can bq provided.
One of the factors which may be partially responsibiq-/if:qr.,Towjincomes in certain farm areas may be the generally depressed economic.conditions

- 2 in the community. Also, there are too many people dependent on agriculture in many areas, and this results in small inefficient units with a small per capita gross output. The real problem is to get enough of the limited resources (land and capital) to the many competing farmers so as to increase their productivity. Land is limited in the sense that only a given quan­ tity of it exists, and capital is limited because of its cost. There are also cultural, social, and economic factors that hinder the migration of of land available to the remaining farmers for consolidation with other small units so as to make these units economically efficient.
1 / 2 /
Farms with low income are found in all parts of the country, but such farms are most numerous in areas of dense rural settlement with high birth rates, where there are few nonfarm employment opportunities, and where topography or .other obstacles hinder the use of modern machinery.
Looking at total numbers, there were approximately one and one-half million farm families in the United States having net incomes from all sources of less than $1,000 in 1949. More than one million of these farm families were in the southern states and the South had 1.8 million farm families
Joe A. Martin,. Problems of Low Income in Agriculture, The University of Tennessee Agricultural Experiment Station and Agricultural Exten­ sion Service, Knoxville, Farm Economics Bulletin No. 9, January, 1956, p p . 5-11.
Erven J . Long, Rehabilitation of Depressed Rural Are a s , University of Tennessee Agricultural Experiment Station, Knoxville, Farm
Economics Bulletin No. 8, January, 1956, p. 11.

- 3 with net incomes below $2,000 the same year. The rest of the country had only a million farm families with incomes below $2,000 in 1949
According to reports to the Bureau of Census in the 1950 enumera­ tion, farm-operator families in the United States received an average money income (total sum of money, less production expenses and losses, from all income sources of $2,650 per family in 1949. But in spite of this rather acceptable average income per farm family, there are still large parts of American agriculture in which low production and income is typical. In the nation as a whole, 1,336,000 farm families reported a net money income in 1949 of less than $1,000 (see Table I). Of these,
640,000 reported receiving less than $500. There were 485,000 additional farm families who did not report their incomes. These included 305,000 who had farm-product sales of less than $2,500 and who, with few excep­ tions are- believed to have had net money incomes under $1,000. If this is a valid assumption, then 1,670,000, or about a third of the nation’s farm-operator families had money incomes of less than $1,000 in 1949.
2 /
Montana is not a low-income farm state. The total net income per farm ranged between $4,543 and $6,310 from 1950 to 1956 (see Table II).
This is high relative to the total net income per farm for the United
States. Net income per farm in Montana averaged a little more than double that for the United States for the 1950-56 period.
W. E . Hendrix, "The Low Income Problem in American Agriculture,"
United State Agriculture: Perspectives and Prospects, The American
Assembly, Graduate School of Business', Columbia University, May 5,
1955, p. 90s
2 /
Ibid., p . 90.

“ 4 -
TABLE I. NUMBER AND AVERAGE NET MONEY INCOME OF FARM-OPERATOR FAMILIES,
CLASSIFIED BY THE SIZE OF THEIR MONEY INCOME,V u N I T E D STATES,'
1949 . V V I.'= ./V
Families Reporting Incomes
' ■ .
■
Under $1,000
$1,000-1,99.9
2,000-2,'999
3,000-3,999
4,000-4,999
5,000-9,999
10,000 and over
Families not reporting income
All farm opertor families
;■
Number of
.
Families
.
.
1,366,000
1,206,000 .
863,000
573,000
330,000 1
412,000
106,000
485,000
5,378,000
• i
Income per Family
$ 464
1,392
2,356
3,360
4,360
6’?IV
— c/
2,650
■ .............../ " M
Money income includes income from farm and nonfarm sources, but not income-in-kind 6
V Source; Farms and Farm People., Government Printing Office, 1952.
, V The average incomes of these families were not reported;
TABLE TI. TOTAL NET ,INCOME PER FARM FOR MONTANA AND THE UNITED STATES,
' 1950-56 .f/ ■ ,
Year
1950
1951
1952
1953
1954
1955
1956
'
.■
.
-
;
■ v ■ .. .. .■
United States
■ -•
■
" ■
■
■
$2,428
2,911
2,789'
2,499
2*439
2,331
2,337
•
- .
■ : ■■■ -V,.-
Montana
.$6,310
6,706
.5,096
5,657
4,693
5,338
' 4,543
Y ' "■> ■ ' ■ ■ ,
Source: Agricultural Marketing Service, United States ,Department...; of Agriculture,, TheyFarm Income Situation# September, 19571
■ ;.V' ' ■: :

- 5 -
Nevertheless^ we do have a low-income problem in the State of Montana.
According to the. United.States Department of Agriculture, Montana has seven moderate low-income and level of living counties. These are: Flathead,
Lake, Lincoln, Mineral, Missoula, Ravalli, and Sanders. The average gross receipts per farm in the United. States was $5,080 compared to $10,268 for the State of Montana in 1954 (see Table III). Although the average gross receipts per farm for Montana is comparatively -high, the average gross receipts for the selected counties were 40 perqppt lower than the average for the United States and 70 percent lower than the Montana average.
TABLE III. NUMBER OF ALL FARMS IN THE UNITED STATES, MONTANA, AND SELECTED
' TE LOW-1NCOME COUNTIES, VALUE OF ALL FARM PRODUCTS SOLD "
BY .SOURCE, AND AVERAGE GROSS RECEIPTS RER FARM, 1954.a/
■ 'I'' . “ ■ ' • ■ ' ■ ’V ; r ' ' •
Area Farms
•
Products Sold
• .
"
Average Gross
Receipts
United States
Montana
Flathead
Lake
Lincoln
Mineral
Missoula
Ravalli
,Sanders
4,783,021
33,061
1,434
1,490
387
85
642
1,396
591
$24,298,622,950
339,481,014
4,856,578
4,885,977
666,267
155,335
2,298,361
6,371,352
1,629,751
$ 5,080
.10,268
3,387
3,950
1,722
1,827
3,580
4,564
2,758
■■ Y " ' ' . • . • '.......
Source: United States Department of Commerce, Bureau of the Census,
1954 Cehsus of Agriculture.
If we look at farms in the United States, Montana-, and the selected moderate low-income counties classified by economic class, we notice that there is a large proportion of farms in the lower economic classes and also.in the part-time and residental classes (see Tables IV and V ) . In

- 6 the United States there were 69.6 percept commercial farms, and 30.4 per­ cent other farms in 1954. Montana, in the same year, had 87 percent of its farms classified as commercial and 13 percent as other farms.
TABLE IV. NUMBER OF FARMS IN THE UNITED STATES, MONTANA AND THE SELECTED
MODERATE LOW-lCOME MONTANA COUNTIES BY ECONOMIC CLASS,' 1954.2/
Farms by
Economic
Class
Other farms
Part-time
U. S.
1,455,404
574,575
Residential 878,136
AbnormaI 2,693
Montana Flathe„ad
Lake Lin­ coln
Min­ eral
Mis s ­ oula
Rav­ alli
San­ ders
Commercial
Farms
Class I
Glass IX
Class III
Class IV
Class V
Class VI
3,327,617 28,679
134,003 2,583
448,985
706,929
"
6 ,8 9 6
7,752
811,965
763,348
462,427
6,001
3,840
1,607
4,278
2,029
2 ,1 9 7
52
826 1,104
18
83
214
194
225
92
594
244
350
10
113
225
402
218
136
376
191
185
196
6
37
42
61
211
131
80
40
5
11
3
20
.■ r
36
20
16
323 1,040
6 14
42
69
85
76
45 .
318
72
246
102
252
294
277
101
351
165
186
382
3
21
57
97
157
47
228
133
95
Source; United States Department of Commerce, Bureau of the Census,
1954 Census of Agriculture.
Commercial farms are divided into six groups on the basis of the total value of farm products sold, as follows;
Class of Farm
II
III
IV
V
VI
Value of Farm Products Sold
$25,000 or more ■..
10,000 to $24,999
5'f000 to 9,999
2,5.00 to 4,999. .
1,200 to 2,499
250 to 1,199*
* Provided the farm operator worked off the farm less than 100 days, or provided the income of the farm operator and members of. his family received from nonfarm sources was less than the value of all farm pro­ ducts sold.

- 7 ~
TABLE V.
PERCENTAGE DISTRIBUTION OF FARMS IN MONTANA, AND SELECTED
MODERATE LOW-INCQME MONTANA COUNTIES, ACCORDING TO ECONOMIC
CLASS AND THE U.S.D.A. "LOW PRODUCTION" CLASSIFICATION,1954. a/
Area
Low Production
FarmsA/ I. ' TI
■' CLASS ' , ' I
III: ■ V VI Farms Farms
Montana
Flathead
Lake
Lincoln
Mineral
Missoula
Ravalli
Sanders
29
64
49
79
75
68
52
71
8
I
Iv-
•-
I
I
■-
21.
24
-
18 12
6 -.. 15 14 16
.8' 15 27 15
- 2
7
7
8
4
9
14
11
18
9
10 15
4 26
13 11
21 20
16 26
4
6
9
12
2
7
7
8
6
17
13
32
26
12
12
22
7
25
12
20
21
38
13
15
.Source: John Bower, Montana Extension Service, Montana State College,
Bozeman, Montana, unpublished mimeo.
b/
Includes all farms having sales of farm products of less than $2,500.
Other farms have been grouped into three classes as follows:
(1) Part-time farms -- Farms with a value: of farm products sold of
$250 - 1,199 if the farm operator reported:
(a) One hundred or,more days work off the farm^ or
(b) the nonfarnr income-to-'-the family was more than the value of farm products sold.
(2) Residential farms -- All farms of three acres or more with a, total value of farm products sold of less;than'$250.
(3) Abnormal farms -- Abnormal farms include public and private institutional farms, community enterprises, experiment station farms, grazing association, etc.
Bringing together Tables III and IV, we can see that a comparison of the United States, Montana, and Montana’s low-income counties by average gross receipts can be misleading because of the large proportion of the farms that are classified as resident'ial farms. Only a small proportion

« 8 “ of the sales come from these farms, but their inclusion lowers the average
/ gross receipts per farm. The net income data in Table II and the data by economic class in Tables IV and V are probably the best available data for comparative purposes. All of these data, however, point toward the con­ clusion that according to Montana or average United States standards,
Montana does have a low-income farm problem.
The question arises as to what has been done in the past and what is being done at the present to alleviate the low-income farm problem. The fact is that we have no well-defined, comprehensive policies and programs for dealing specifically with the low-income problem in agriculture.
Rather, our national policies have been directed largely toward strengthen- ing commercial agriculture and its dominant interest groups. A notable exception has beep the program administered by the Farmers Home Adminis­ tration and its predecessor agencies. The Farmers Home Administration activities, however, have been hampered by inadequate funds and by its attention being limited to adjustments that could be affected within
V individual farm-fence boundaries.-7
Present and past governmental programs, relying mainly on price sup­ ports, have been ineffective in helping low-income farmers. With a low volume of production, high price supports do not benefit these low-income groups to any great extent. Whereas the large producer^ already benefit­ ing from low production costs and high production, volume, benefits the most. Price supports may be nepded, but they are obviously not the soIu- tion for the income problems of people who have little to sell, as do nfost
-i/ W. E. Hendrix, op.cit., p. 98.

- 9 of the nation's low-income farmers^ If these people are to be assisted, it must be first through improvements in their resource bases and in their job opportunities.
State and federally supported agricultural research has of course been conducted along many lines of activity found on low-income farms.
However, relatively little research has been specifically oriented to the problems and needs of the nation's low-income farmers. Rather, the emphasis has been upon machinery, crop and livestock improvements, under the assump­ tion that these would be equally beneficial to all income classes of farmers. "Very little attention has been given to the problems of adapt­ ing technologies to small scale operations or to the problems of imple­ menting their adoption by low-income farmers.
T h e .United States,Employment Service's current program includes a job-placement service, community surveys of labor needs and supplies, counseling services to help workers to determine their occupational abili­ ties and interests, and labor market analysis. But this agency is handi­ capped in serving low-income rural areas by its lack of staff and faci­ lities in such areas. If it is to be more helpful to rural families located considerable distances from employment centers, further expan­ sion of its operations is essential.
Vocational training and guidance represent pairt of the investment that society makes in the education of its ydUth and adult citizens,, By ahd large, rural communities have less adequate facilities -fpr vocational training and guidance than do the urban communitiesi Needs in this field

- 10 are not being adequately met for a large proportion of rural youths and adults. This lack has been chrohic for years among the low-income farm families.-^ The recent extension of social security has strengthened the economic security of millions of farm families, and has had special significance for low-income families. There has been growing awareness over the years of. the need for social security for farm people.
There are also a variety of alternatives for alleviating this low- income farm problem. The alternatives may be improvements of farm condi­ tions, subsidization^ or providing nonfarm employment opportunities. Each of these alternative programs' can help the low-income farmer to improve his economic status.
Subsidization of the low-income farmer is one alternative. Subsidir zation can be in the form of direct and indirect payments, such as price supports, income payments, and pyb.lic services unsupportable by the tax base.
For many decades more children have been born on farms than could be absorbed into agriculture. Fewer workers have been needed on farms in recent years and the problem of finding jobs elsewhere ha-& become more acute for rural young people. A program to develop and utilize the human resources of agriculture more fully must anticipate a continuing large- scale movement of people away from the farms or into part-time nonfarm employment. Off-farm work is one means by which families with low incomes can add to their earnings. The combinations of part-time employment and
TJ .. • " ; ■ /
-=/ United States Department of Agriculture, Development of Agriculture's
Human Resources, A Report of-'Problems of Low-Income Farmersj Washing­

- 11 migration to full-time nonfarm jobs through industrial development are also alternatives to alleviating the low-income p r o b l e m . ^
The Research Problem
The approach to the low-income problem with which this study is con­ cerned is a program to develop and Utilize the human resources of agri­ culture more fully by providing either full-time or part-time nonfarm
•i— ■ employment opportunities.- The accompanying need for this type of solu­ tion is the development and location of more industry in the low-income area.
Flathead County was selected as a pilot area for this study. This is one of the counties in Montana that has been designated as a moderate low-income and levbl of living area by the United States Department of
Agriculture.
Flathead Cpunty5 located in northwestern Montana, is bounded on the north by the Canadian Province of British Columbia, on the east by
Glacier, Pondera5 TOton5 and Lewis and Clark Counties* on the south by
POwell5 Misboula* Lake* and Sanders Counties, and on the west by Lincoln
County. The County has 5*294 square miles* the geographic features of which are mountain ranges* Valleys, rivers, and lakes.. The principle towns in Flathead County are Kaiispell5 Whitefish, Columbia Fallb, Somers,
Bigfork* Coram, Hungry Horse, and BeltPn.

-
12
-
Because of the radical differences in elevation, climatic conditions in the County vary widely. Average annual precipitation ranges from
15.02 inches at Kalispell to 25.72 inches at Belton near the west- end of
Glacier Park. Rainfall during the growing season, which.is approximately
150 days at Kalispell, is about 7.5 inches. The annual range of mean ave­ rage temperatures in the Kalispgll area is from 22° in January to 66° in
July, and the mean annual temperature for all stations is around 43°.
The total population of Flathead County in 1950 was 31,495. This was an increase of 64 perceht over the 1930 population of 19,200. The composition of the 1950 total was 13,005 in the urban class, 5,329 in the rural-farm class, and 13,161 classified as rural-nonfarm. Since 1930, the rural-nonfarm population has increased by 197^7 percent, the urban popula­ tion by 46.2 percent, and the rural-farm class has decreased by 9.4 per?. cent. It is clear that in the last two decades the trend has been toward the rural-nonfarm group
Of the 3,313,280 acres in Flathead County, approximately 431,130 acres are in the farming area confined mostly to the floor of the Flat- head Valley, along with small segments of the surrounding foothills and benchlands. There are 1,434 farms with an average size of about 300
I/
Bonneville Power Administration in Cooperation with Flathead Electric
Cooperative, Analysis of Power Requirements, Flathead Electric Coop­ erative, Kalispell, Montana, June, 1956, p. 2.
2/
IN. .Gordon Browder and Harold J . .H o f lich, Population and Incomes in
Montana, Bureau of Business and Economic Research, School of Business
Administration, Montana State University, Missoula, Montana, Regional
Study No. 5, July 1953.

- 13 acres.- The average value of each farm in 1954, including land and build­ ings, was $22,076, for an average value per. acre of $78.07.^
Flathead County is fairly representative of the low-income counties in Montana'e It has 64 percent of its farms, by economic class, classified as low production farms (see Table V). The United. States Department of
Agriculture has established a Class Called '’low-production farms," which includes all farms having sales of farm products of less than $2,500. Low production farms consist of all residential* part-time, and the two Classes of commercial farms With sales below $2,500. In Montana, 29 percent of the farms fall within this classification,,
The number of farms in Flathead County according to the type of farm are shown in Table VI * and the percent of farms according to the acres of
Cropland harvested are given in Table VII. Table-V H I contains data oh the value Of farm products sold by,source for Flathead GoUnty a h d 'provides a guide.fo the-COUhfy^S Source of income.
There are
farms (Economic C l a s s e s
ahd
with the value of all farm products sold Of IesS than $2,500. These, plus a certain percentage of the 244 part-time farms, constitute a IarCie proportion of the total number Of farms in the County and probably represent the heart of the low-ihoOme farm problem in the County (see Table
An approach to the IoW-IhcOme problem in Flathead GOUhty necessitates estimates of the number of farmers that need to be provided with either
y

- 14 -
Flathead County,
TABLE VI, NUMBER OF FARMS IN FLATHEAD COUNTY BY TYPE OF FARM, 1954.
V
Farms by Type of Farm
Estimated number of farms
Field-crop farms other than vegetable and fruit-and -nut
Cash grain
Other field-crop
Fruit, farms
Dairy farms
Poultry farms
Livestock farms other than dairy and poultry
General farms
Primarily crop
Primarily livestock
Crop and livestock
Miscellaneous and unclassified farms
Number
1,420
327
311
16
10
117
45
187
92
17
15
60
642 s / Sources United States Department of Commerce, ]
1954 Census of Agriculture.
TABLE VII. ACRES OF CROPLAND HARVESTED IN FLATHEAD COUNTY, I954.
.
■ -
Acres Harvested Per Farm
I ' ■
Percent of Farms
Under 50 acres
. 1 - 9 acres
10 - 19 acres
20 - 29 acres
30 - 49 acres
50 - 99 acres
100 - 199 acres
200 acres and over
56.5
(19)
(13.5)
(10)
(14)
20.5
16
7 a/
Source: United States Department of Commerce, Bureau of the Census,
1954 Census of Agriculture.

- 15 -
TABLE VIII. VALUE OF FARM-PRODUCTS SOLD BY SOURCE FOR FLATHEAD COUNTY,
■ 1954.a/ ■
Item
All farm products sold
All crops sold
Field crops, other than vegetables and fruits'sold
Vegetables sold
Horticultural specialities sold
All livestock and livestock products sold
Poultry and poultry products sold
Livestock and livestock products, other than dairy and poultry, sold
Forest products sold
Sold by Source
$4,856,578
2,526,881
2,406,226
30,047
22,693
67,915 •
736,903
236,433
1,021,172
335,189
Source: United States Department of Commerce, Bureau of the Census,
1954 Census of Agriculture.
Depending upon the criteria we use, the estimated number of farmers that Flathead County can adequately support may vary from 480 to 960 farms. The remaining farmers should-be provided with either full or part-time employment.
If the current gross farm income of the County were distributed among the 1,434 farms so as to equate the average gross income per farm, or total net income per farm, with that of the United States, there would be suf­ ficient income for approximately 960 farms. This would indicate about 480 excess farms. But if the gross income of the County were distributed so as to equate the average gross income per farm, or total net income per farm, with that of the average for Montana, there would be sufficient inc­ ome for about 480 farms. And this would indicate an excess of approxi­ mately 960 farms (see Table IX).

- 16 =
TABLE IX. AVERAGE GROSS RECEIPTS AND TOTAL NET INCOME FOR FARMS IN THE
UNITED STATES, MONTANA AND FLATHEAD COUNTY, 1954.a/b/ '
Area
United States
Montana
Flathead County
Average
Gross Receipts
$ 5,080
10,268
3,387
Net Income
$2,439
4,693 ,
1
, / a/ Sources United States Department of Commerce, Bureau of the Census,
1954 Census of Agriculture.
b/
Source; Agricultural Marketing Service, The Farm Income Situation,
September, 1957.
c/
Calculated as 46 percent of average gross receipts.
From these comparisons, the estimated number of full or part-time jobs that would need to be provided ranges from approximately 480-960.
This is based on the assumption that the average gross receipts or total net income for either the United States or Montana are acceptable in terms of income levels.
The objective of this study is to estimate-the number of job oppor­ tunities that might be provided by industrial and agricultural development, and to estimate the probability of such development providing sufficient employment to achieve an "acceptable" level of income somewhere between the two extreme estimates above.
Limitations of the Study
This study will be concerned with, the partially or totally unuti­ lized resources that exist in Flathead County. Such resources, include

forests, water, power, minerals, and labor. .The main problem is to deter mine the possible impact of the development of such resources upon the number of full or part-time employment opportunities that may be made available to the underemployed low-income farmers of the County.
Some farmers may be inefficient and still not be in the low-income group. These inefficient producers are not of any main concern in this study.
This study will consider only Flathead County and its character­ istics as they pertain to the problem. Flathead County, being a fairly representative moderate low-income and level of living county in Montana, is used only as an example or pilot area. The findings of this study will be partially applicable to other moderate low-income counties in
Montana and to some extent to Montana and the United States in general.
The data available for the study are not entirely adequate, to say the least, and considerable use is made of secondary data. Also, in attempt­ ing to describe the resources available and in assessing the probability of developing these resources for providing new employment, considerable reliance is placed on personal judgment. This is done in part by the author, but the judgments include opinions and research done by others.
Objectives
The main objective of this study is to explore the off-farm employ­ ment alternative as a means of helping the low-income farmer raise his income. To achieve the main objective, the following specific objectives are established;

•*18
-
(1) To estimate the number of farms that are substandard in terms of income and level of living so as to indicate the number of nonfarm employment opportunities that should be made available
(2) To describe the resources available in the County that are not being fully utilized.
(3) To estimate the possibilities of developing new industries, or expanding the existing industries, and to determine the number of nonfarm jobs that might be provided.
(4) To estimate the'advantages that may accrue to the low-income farmer by accepting nonfarm employment, either full or part- time.
Hypothesis
The economic and social welfare of low-income farmers in Flathead
County, the general agricultural economy of the County, the rural com­ munities of the.County, and the County as a whole, can be enhanced by providing full or part-time employment opportunities for low-income farmers through the development of new industries and the expansion of existing industries.
Procedure
An estimate of the number of farms in Flathead County that would provide an adequate level of income, or an estimate of the number of jobs needed in the County, will be determined by examining the number of farms in the County that could be provided with approximately t h e .
same average gross receipts and net income as that received by the ave* rage farmer in the United States and in Montana. By this process, we can estimate the range of excess farms that are in the County, and the

- 19 range of job opportunities that should be provided by industrial developmento
.In Part II, a general description of the existing resources and the present utilization of these resources is presented. This provides a summary of the present uses of the resources and indicates whether they are being fully utilized.
After the general description of resources and their present utili­ zation, the potential industrial development of the existing resources will be examined, and an estimate made of the number of employment oppor tunities that might be made available through the establishment of new industries or the expansion of existing industries.
The following sources of secondary data will be used: The Montana
■
■
Almanac, 1957, a book prepared on Montana's economy by Montana State
University; The Economic Base for Power Markets in Flathead County.
Montana, a study made by the Bonneville Power Administration on economic conditions and developments in Flathead County; The Mineral Industry of
Montana, a reprint from the Bureau of Mines Minerals Yearbook, 1955;
Industrial Opportunities^, "a report by Blair Hutchison and John Wilkstrom of the Intermountain Forest and Range Experiment Station, Ogden, Utah, on potential timber developments; and Commerce and Industry, a quarterly report put put by the Montana State Planning Board as a guide to plant site selection for manufacturers, engineers,'investment bankers, and industrial realtors.
The primary data were obtained from interviews conducted by the author with various persons and agencies, both private and public,

-
20
connected-with low-income farmers and industrial development. These included such individuals and agencies as the County Extension Agent,
Kalispell and Whitefish Industrial Development Corporations, Kalispell,
Whitefish and Columbia.Falls Chambers of Commerce, Flathead County
Employment Service, Bonneville Power Administration, Whitefish Lumber
' • tiompany and others6 This type of information provided data that helped to determine the possibilities for industrial development and estimates of the amount of employment that may be forthcoming from such development.
Part III of this study contains an integration of the estimated job needs and opportunities from the preceding sections. Then, by estimat­ ing the level of income that might be received by the low-income farmers, estimates of the benefits that may accrue to the farmers themselves", to the agricultural economy of the County, to the rural communities, and to the County as a, whole are madeb
In the final section conclusions will be drawn ,as to the validity of the solution of the low-income problem by the means of providing nonfarm employment opportunities, and the possibilities for further research in low-income areas.

PART II
AVAILABLE RESOURCES, POTENTIAL INDUSTRIAL DEVELOPMENT
AND EMPLOYMENT • "
•
Industrial development offers some opportunities in a number of rural areas which now lack the means of a high level of income. This is especially true where available labor is accompanied by local resources and adequate power at low cost. During the last 10 to 20 years, indus­ tries have played a part in raising the Idvel of earnings in certain low- income rural areas.-V
Industrial development for an area is often thought of in terms of one or two big plants that will immediately make jobs for all» But the more realistic type development is often a progressive growth which uses all resources in the area, including agriculture, forests, minerals, power,
2/ and improvement of labor skills through vocational training.-'
Since this study is concerned with potential industrial development in Flathead County as a means of providing employment for low-income farmers, it is necessary to examine the resources available in the County, the existing industries, potential new industries^ the expansion of exist­ ing'industries, and to estimate the employment that may evolve frtim these developments.
l / United States Department tif Agriculture, op.cit., p. 30.
2 / Ibid., p. 30.

- 22
Forest Industry
Forest industries in Flathead County occupy a very important posi­ tion in the County's economy. The lumber manufacturing industry (saw­ mill, logging, and woodworking) in the County employs an estimated 1,000 workers. This does not include an estimated 200 workers employed by the
United States Forest Service. There are also other workers whose employl/ ment rests indirectly on the lumbering industry.-'
Since approximately nine-tenths of the area in the County is forest land, it seems this is an area in which development of new industry and the expansion of existing industry could take place. It must be kept in mind, however, that employment in the forest industries in this section is characterized by seasonality and is subject to cyclical fluctuations
2% in the lumber market. This characteristically, seasonal employment is one of the factors which makes the forest industry so attractive to the low-income farmer. The farmer can allocate his unused labor in the winter months to this type of work. Since almost all the farms in the County have some type of timber stand on them, the farmer can go out in the winter months and harvest the timber that is suitable for sale to the different lumbering companies, or he may sell the timber to the lumbering company for harvesting. In 1954, the value of forest products sold by farmers amounted in Flathead County to $335,189.
Montana Employment Service, Kalispell, Montana, Juhe 30, 1958.
George Sundborg, The Economic Base for Power Markets in Flathead
County, Montana, Bonrievilie. Power Administration, October, 1945, p p / 6-15.. '

-
23
-
According to the 1954 Census of Manufactures } there were'95 lumber and wood-product manufacturing establishments in Flathead County.
Seventy-four of these hired from one to 19 workers, 19 hired 19-td 99, and two of. the- establishments used more than 100 employees each.(see
Appendix Table I ) .
A large proportion of the County's lumber production is in the form of railroad ties. The Great Northern Railway takes ties from this area to maintain not only the railroad mileage located within the County, but also for long stretches in the sparsely timbered counties of the state..
The largest Flathead sawmill, at Somers, treats more than a million ties a year.
In addition to the cross ties and lumber used by the railroads, min­ ing companies use lumber in the form of heavy timbers, planking and logs.
The mining companies also use large amounts of round mine timbers, gen­ erally larch and Douglas fir. Other important uses for sawmill products are found oh farms, in manufacturing activities, and in general construe- tion.-^/
The Whitefish Lumber Company buys large quantities of thinnings
(intermediate cuttings), with at least a six-inch top, for making-studs.
Five of the 18 workers at this plant are part-time farmers. This type of operation provides off-season employment for other part-time farmers who cut this type of timber during the winter months for sale to the
Ibid., p. 15.
2 / Montana State University, The Montana Almanac, 1957, pp. 218-19.

24 -
,plant. In 1957, the cut of thinnings by small farmers in Flathead County amounted to 15 million board feet. This sold for $8 to 12 per thousand board feet on the stump at the producer’s farm. The income to the farmers for this type of lumbering amounted to approximately.$150,000 in 1957.
But at the present time there.seems to be, no possibility for significant expansion in this type of operation or in the railroad tie industry. So these two operations offer little help as a means of employment for more low-income farmers.
No oneforest industry by itself is the complete answer to the timber utilization: problem. In the long run, best use will be made of the timber if more than one industry is located in the area. The combination that seems to offer the most hopeful prospects from the standpoint of stable income, maximum employment, full utilization of the timber, and a high grade product, would be (l) sawmills of a larger and more permanent type,
(2) pulpmills and papermills, and (3) composition-board mills.. The term medium, and high-density boards made from wood fibers and wood particles by several different processes. Masonite is the.trade name of one of the high-density boards, and Celotex is one of the low-density boards.
2 /
I/ Estimated figures by the Montana Forest Service, Kalispell, Montana,
June, 1958. •'
S. Blair Hutchison and John H. Wilkstrom, Industrial Opportunities,
Intermountain Forest and Range Experiment Station, Ogden, Utah,""
April, 1955, p. 18.

- 25
The type of plant, the process used, and the degree of mechaniza­ tion and efficiency all have bearing on the prospective employment oppor­ tunities. Sawmills have different labor requirements than pulpmills. As a matter of fact, two plants of the same type and output may differ sub­ stantially in this respect, depending on efficiency and degree of mechani­ zation. There are several pulping and composition-board processes, and there are many types of paper and composition-board products. Thus, we can speak only in generalities in discussing employment opportunities
As mentioned before, Flathead County has many sawmills operating in the area » But, there is. little hope for expansion in this industry alone because of the lack of a market. If a pulpmill or composition-board mill could be developed in the County, additional employment could be made available not only by the new industry, but also more employment in the logging and sawmill industries. Table X presents the man-hour require­ ments which seem to be realistic for the various type operations.
A preliminary study of. suggested areas for possible location of pulp- mills in Montana is contained in a 1955 summary report prepared by the
Water Supply and Water Pollution Control Program.-^ One of the areas studied was that of the Flathead River from the junction with the South
Fork to Flathead Lake. The conclusion of the study was that this sector
^ Ibid., p. 18.
Water Supply and Water Pollution Control Program, Public Health Ser­ vice, ,United, States Department of Health, Education and Welfare,
Summary Repott on Pulp Mill Sites in Relation to Mi-11 Effluent Effects on Water Quality in Streams-in Western Montana,and Northern Idaho; •
Washington, D. Ci,' 1955, p. 6.

- 26 of the stream could accommodate a 200 ton sulfate or Krafjt pulpmill if the Operations of Hungry Horse Dam do not reduce the future minimum winter and summer flows.
TABLE X. NUMBER OF MAN-HOURS OF EMPLOYMENT IN 1,000 BOARD FEET OF LOGS^
Type of Operation
Lumber
Pulp \
Chemical
Mechanical
Pulp and,paper
Chemical
Mechanical
Composition-board
Lumber and composition-board
Man-hour
Requirements
21.4
16.0
16.7
3 3 .5
48.4
2 2 .0
3 0 .2
Source; S. Blair Hutchison and John H. Wilkstrom, Industrial Oppor­ tunities , Intermountain Forest and Range Experiment Station,
Ogden, Utah, April,1955, p. 19.
In addition to the water supply, transportation and electric power facilities are available in the County. Also, there are the lumbering and wood products industries operating nearby which are potential sources of mill residues. In addition, there are logging residues from farm wood lots, and dead and green timber in both private and -government ownership.
All these add to the possibility of a pulpmill and additional employment.
The estimated employment from a 200 ton sulfate pulpmill would be
345 jobs from the stump to the end product at the plant. If the pulp­ mill could be built in conjunction with a paper plant, the estimated number of jobs could be increased to 720 (see Table XI). This

27 development alone would provide many jobs, either on or off the farm, for the low-income farmer.
TABLE XI. EMPLOYMENT BY IDEAL SIZE PLANT (FROM STUMP TO END PRODUCT OF
PLANT) . V
Tvoe of Plant
Sawmill
Chemical pulp
Mechanical pulp
Chemical pulp and paper
Mechanical pulp and paper
Composition-board
Daily Capacity
60 M . B d . Ft.
200 tons
50 tons
200 tons
50 tons
50 tons
Employment
160
345
50
720
140
40
.§/ Source; S. Blair Hutchison and John H. Wilkstrom, Industrial Oppor­ tunities, Intermountain Forest and Range Experiment Station,
Ogden, Utah, April, 1955, p. '20.
The ideal size for a composition-board plant would be a plant with a daily capacity of 50 tons (see Table X I ) . The composition-board in this instance is a continuous wet process hard-board mill. Composition-boards are one of the best selling wood items in the American market. The total consumption of these products in 1953 was 17 times higher than in 1925.— ^
A composition-board plant may.need as few as 14,000 cords of wood or units of chips per year. That amount of wood can be obtained from a rela­ tively small area. A community such as Flathead County, with one or more sawmills producing a total of 30 million board feet annually could sup­ port a composition-board plant from the residues and thus increase its timber based employment. Ultimately, it is expected that such a composition- board plant would also make use of small trees and logging residues, thus

-
28
increasing employment still more. A 50 ton plant of this type would pro­ vide employment for 40 men (,see Table XI) ^
Another forest industry that may be a possibility in the County is a plywood plant. In a study conducted by the Bennett Veneer Factors,
Incorporated, for the Whitefish Lumber Company, the possibility of deve­ loping a plywood plant in the area was examined. In their analysis, they came to the conclusion that a plywood plant at Whitefish could be a pro­ fitable operation.
The estimated number of job opportunities at the plant itself would be about 150. But, there would be an approximate 150 additional jobs made available because of the logging operations connected with the plant, and by additional services needed to keep the plant in operation.
For more than 25 years Christmas trees have been an important pro­ duct of Montana's forests,, yielding in recent years annual revenues well in.excess of $1,000,000. In 1954,. the record year, about 3.5 million trees were shipped to markets outside the state. Lincoln and Flathead
Counties are the most important producers, supplying about 68 percent in
1955. This area is peculiarly suited to the quantity production of such trees for the holiday market. The species which is used, the Dpu'glas fir, requires less moisture as it grows in the Rocky Mountain region than on the Pacific Coast, giving the tree superior lasting properties. The cool climate also permits handling and storage without deterioration.
Trees cut early in October remain in good condition at Christmas even
-i/ Ibid., p p . 18-28.

-
29
though they may have been shipped thousands of miles. About 70 percent of the trees come from private properties, but in recent years cutting on federal and state lands has been increasing.
1
/
2
/
The great need for supplemental income makes the Christmas tree industry important. It is nearly ideal in this respect for it conflicts to only a minor degree with other farm work. Farmers have finished their harvest prior to the October-November Christmas tree season and are look­ ing for work that will produce additional income. Many persons are em­ ployed cutting, sorting, baling, and tagging trees — including some housewives who pick up a few extra dollars between their household chores.
For many families the Christmas tree industry means the difference between a good living and a poor one.
The Christmas' tree industry in Flathead
County furnishes valuable off-season employment to several hundred persons for a period of approximately 70 days.
4/
Christmas trees can provide a steady annual cash income for farmers in the County. From 1954 to 1957, the estimated value of Christmas trees sold by farmers in the County increased from $418,500 to $550,000, accord­ ing to the County Extension Office. A Christmas tree plantation on a 10 year rotation plan can earn a net income of approximately $150 per acre l / Montana State University, op.cit., pp. 220-21.
■2/ George Sundborg, op.cit,., pp. 16-17.
Ben M. Huey and S. Blair Hutchison, Marketing Montana Christmas Trees,
.School of Forestry Bulletin 2, Montana State University, December,
1949*.pp. 3-4.
George Sundborg, op.cit., p. 17.

- 30 beginning the tenth year. This plan takes into consideration., all costs from site preparation to harvesting over the 10-year period, and assumes a higher price for plantation•grown trees.. Included in the costs was a compounded five percent opportunity cost on the investment in land and the fixed and variable costs M
In Flathead County, 87.7 percent of the total land is in forest.
Fifty-five percent is classified as commercial, that, is, it is capable of producing commercial timber, is economically accessible and is not reserved from cutting.^/ Therefore, it seems that this is the area in which industry has the greatest potential for development and where most of the possibilities of off-farm employment exist.
In the preceding section on the possible developments of industry and its expansion, only a few of the more important possibilities were considered. But, along with the potential development in these indus-
I tries, there exists numerous possibilities in the smaller industries.
All of these wexe not considered because of lack of data and of time.
But there are possibilities in the fields of by-products and remanufac­ ture of lumber such as boats, boxes, furniture, cabinets, etc. All these would add to the opportunities for off-farm employment.
i/
Richard T . Marks, Extension Forester, Montana State College, Bozeman,
Montana, September, 1958.
2/ American Forest Products Industries, Incorporated, Montana Forest
Facts, 1955, p. 6,

- 3 1 -
If all the possible developments examined were made the number of full-time off-farm employment opportunities provided is estimated at approximately 1,000. In addition there are at least several hundred part-time jobs in the Christmas tree industry. With other types of expansion and development not considered here, these estimates might be
25 percent higher.
Agricultural Industry
The farming area of Flathead County is confined largely to the floor of the Flathead Valley. The highly productive valley area is fringed on east, north, and west by cut-over or forest land. The type of land and the natural timber cover severely limits grazing opportunities. The
Flathead probably suffers, as far as agricultural stability and progress are concerned, from the fact that it gets almost enough rainfall. If precipitation were several inches less a year, dry farming probably would have given way long since to irrigation. This keeps ^many farmers from making an effort to get irrigation water on the land. But sprinkler irrigation has increased rapidly in recent years and along with commercial fertilizer constitutes a new frontier in agricultural development. In
1957, there were 212 sprinkler systems covering 12,557 acres.
The crops that are most prevalent in the.County are the small grain
' / crops, peas,potatoes, hay and garden. These crops, along with rahge and
/ pasture land, compose most of the farm acreage in Flathead County (see
■ ' /
_______________________ __ . __________________________________________________________
—> George,Sundborg, op.cit., pp. 35-36.
■§/ Report prepared by Flathead County Extension Office, 1957.

- 32 “
Table X I I ) . Other important farm revenue producers are the beef and dairy enterprises. Also, as previously mentioned, Christmas trees are becoming an increasingly important source of farm income (see Table
XIII). It is with these agricultural products that potential develop­ ment of agricultural industries must be concerned.
There are no vegetable or fruit processing plants in Flathead County.
This is one of the County's more probable developments as far as an agri­ cultural industry is concerned. Production of strawberries, apples, and plums and prunes has dropped by approximately one-half from 1949 to 1954
(see Table XIV). Cherries and dry field and seed peas produced in these same two years remained about the same volume. These volumes are small, but a cannery might be a possibility if a sufficient volume of vegetables or fruits could be developed. Or a quick-freeze plant that could provide a variety of packaged frozen fruits and vegtables may be a more probable development. Such a plant could provide a market for the.fruits and vegtables produced in the County, and furnish not only some seasonal em­ ployment, but also a more intensified type of farm production and possi­ bly higher farm income. Employment opportunities would be available at the volume of production necessary to support a freezing plant or can­ nery were not available, but it is certain that there is some minimum- volume of produce for economical operation. Although a sufficient volume may not be available now, the prospects'for developing such a volume are good. The location of such an industry would provide some seasonal em­ ployment opportunities.
L

- 33
TABLE XII. ESTIMATED GROSS AGRICULTURAL PRODUCTION — FLATHEAD COUNTY,
I957.a/ '
Total Dollar
Va lueis/
Crops
Winter wheat
Spring wheat
Oats
Barley
Peas
Potatoes
All Hay
Garden
Seed crops
Range and pasture
Summer fallow
Acreage
17,200
3,750
12,000
22,000
2,281
950
36,800
300
150
202,000
31,500
Yield Price
29 b u . ‘
18 bu.
41.5 bu.
29.8 bu.
1.76 b u .
1 .7 6 bu.
.55 bu.
.81 bu.
18.6 bu.
6.21 T .
45.00 Ton
1.97 T.
17.00 Ton
500.00 Acre
450.00 Acre
Livestock
' 2800 Cull Cows ® 115.00
5400 Steer Calves— 420# @ 22.75
322,000
515,970
216,000 2700 Heifer Calves— 400# ft 20.00
1200 Feeder Cattle # 120.00 over cost 144,000
Diary: Gross Farm Receipts From
Milk plants
1350 cull, cows
3200 veal calves
933,433
178,200
86,400
Sheep: Wool— 22,518#
Lambs
Swine: 850 sows x 9(1 l/2 litters)- 7650 x 210# x 18.50
12,580
297,202
Poultry: 235,000
Christmas trees and timber
Total income from sale of products
Soil.bank payments
Total gross farm income
878,888
118,800
273,900
531,036
108,421
265,477
1
,
2 3 2 ,4 3 2
150,000
67,500
3,625,454
1,197,970
1,198,033
27,297
297,202
235,000:.
550,000
7,130,956
146,735
7,277,691
/ " "
■S' ' Prepared by Flathead County Extension Office.
b/
Total value of production.

- 34 -
TABLE XIII.
ESTIMATED GROSS FARM INCOME, FLATHEAD COUNTY, 1951-57.
Year
1957
1956
1955
1954
1953
1952
1951
Total Dollar
Value
7
,
2 7 7
,
691
*
6,655,689**
6,180,932***
6,831,051****
6,185,765
7,888,690
8,593,938
— ' Source: Prepared by the Flathead County Extension Office.
*
**
Includes $550,000 from sale of Christmas trees.
Includes $520,000 from sale of Christmas trees.
*** Includes $450,000 from sale of Christmas trees.
**** Includes $418,500 from sale of Christmas trees.
TABLE XIV. FRUIT AND VEGETABLES PRODUCED IN FLATHEAD COUNTY, 1949 AND
1954.a/-.
Crop
Strawberries
Apples
Cherries
Plums and prunes
Dry field and seed peas
1949
8,289 bu.
22,779 lbs.
784 bu.
1,608 A.
1954
19,004 qts
3,679 bu.
23,582 lbs
210 bu.
1,647 A.
Source: United States Department of Commerce, Bureau of the Ced1
1954 Census of Agriculture.
Although the approximate 1,600 acres of peas grown in the County in
1949 and 1954 were dry field and seed peas, these might be converted over to green peas for canning purposes. A pea canning plant that has about
1,300 acres of peas contrated has an output of about 200,000 cases* A

■v 35 plant of this size employs from 100 to 125 persons at the plant for a period of three to six weeks. Also, helpers on the farms number about
100 for the same period of time
County.
This may be a possibility in Flathead
At the present time there are approximately nine plants in the County that process milk, cream, butter, ice cream, and related products. But, there are no cheese or dry milk manufacturing plants. A cheese process­ ing plant could provide a market for more milk and also provide employ­ ment for approximately 10 persons. Since dairying is one of the highest revenue producers in the County, development of these plants seems Iogi-. cal. If the supply of milk is adequate, it may be economically feasible to develop'a new dried milk plant or to make such a plant an annex to an plant, it might be possible to develop a dried egg operation along with the dried milk plant.
Another industry that may be a possibility in the County would be a livestock and meat operation. This could include a cattle feeding opera­ tion, a livestock commission yard, and a meat packing plant. These deve­ lopments would provide more income for the farmer who is doing the feed­ ing and off-farm employment opportunities. Flathead County has 12,000 acres in oats, 22,000 in barley, 36,800 in hay, and 202,000 acres in pasture and range (see Table XII), and may be well adapted to this type
-i/ Based on information obtained from an interview with an official of the Bozeman Canning Company, Inc., Bozeman, Montana."

-
36
of development. Whether the feed and forage production is sufficient to support both a beef and dairy industry has not been determined. The
County has been producing between 500,000 and 1,000,000 bushels of wheat.
If it were -not for the price support program this figure would probably be much smaller. Under other circumstances these acres might serve as a feed base. A small meat packing plant would provide an estimated 50 to
100 job s . Beef, sheep, swine, and poultry all comprise a significant proportion of the total agricultural production in the County and could all be processed in the County.
The County has been producing from 275 to 300 thousand bushels of potatoes per year and may be able to provide a sufficient volume for the location of one or several potato processing plants. One such plant might be a starch or glucose plant for the use of cull potatoes. A potato chip and canned French fries plant is another possibility, as is a dehydrating or instant mashed potato plant. Along with any one of these, commercial seed potato production with a central distributing house may provide more income and a few off-farm employment opportunities. The number of employ­ ment opportunities such developments will provide is difficult to estimate, but we know that they would add to the alternatives available to the low- income farmer.
According to Montana Agricultural Statistics, total hay production for the County in 1955 was 53,000 tons, of which 34,100 tons was alfalfa
The County Extension Agent estimated the total hay production at approxi­ mately 72,000 tons in 1957. This volume is more than adequate.for the

-
37
number of livestock in the County at the present time. This leads us to consider the possibility of establishing a concentrated alfalfa pellet plant in this area. But such a development may be an either/or proposi­ tion if dairy and beef develops in the County. If there were a substantial increase in the dairy or beef industries, there may not be enough alfalfa hay to supply an alfalfa mill. A plant would provide a market for any excess alfalfa not needed for feed and could even lead to the production of more alfalfa as a cash crop. An alfalfa mill processing about 10,000 tons of alfalfa a year would provide employment for approximately 44 persons in its complete operation.
The possibilities of development considered here in the agricultural industries constitute just a few of the more obvious potential opportuni­ ties . There are no doubt may more prospective developments that would provide not only more nonfarm employment opportunities, but also increase the farmers income by specialization and intensification of production.
/
All these cannot be considered in this report. We can conclude* however, that a considerable number of off-farm employment opportunities can be provided by development of agricultural industries.
Mineral Industry
The 60,000 ton annual capacity aluminum plant at Columbia Falls is now producing at capacity'. Much of the aluminum.produced goes to Anaconda’s wire and cable plant at Great Falls, where other metal products are also produced. Raw materials for the Columbia Falls plant come by rail from
Texas and Arkansas plants, where bauxite from the Caribbean area is

- 38 received for processing into alumina. Montana's supply of low cost electric power is directly'responsible for the new and permanent 450 man payroll at Columbia Falls.--^ But there is no planned expansion of this plant in the near future.
Sandstone and gravel are mined and processed into ballast by the
Great Northern Railway, and three companies in Kalispell produce sand and gravel for building and paving. There are also several clay and clay products establishments in Kalispell. In 1955, the total value of mineral production for Flathead County amounted to $178,395. The minerals pro­ duced in the same year and in their order of value were stone, sand and
2/ .
.
gravel.— ' Little if any development in the mineral industry is seen for the County.
■ Power Industry
The Hungry Horse Project of the Bureau of Reclamation, completed in
1952, is Montana's largest power producer. Its installed capacity is
285,000 kilowatts and in addition the stored water also firms up power output at power installations downstream on the Columbia River System.
The power at Hungry Horse is credited as being the major factor in two of Montana's most recent industrial developments. Power from the pro­ ject is sold by the Bonneville Power Administration to the aluminum plant
I/
Franklin Schroeder, Commerce and Industry, Fourth Quarter, 1956, p. 50.
2/
United States Bureau of M i n e s , The Mineral Industry of Montana, 1955, p p . 24-28. •

-
39
at Columbia Falls and to the elemental phosphorous plant at S i Iverbow, near Butte. Both of these plants consume large quantities of power in their processing operations. Power from this project is also sold to
Montana Power Company, Pacific Power and Light Company, and several
Rural Electricification Administration cooperatives ^
These power sources portend an optimistic outlook for continued development of the County’s resources. With the availability of adequate power in the County, industrial development has greater possibilities and additional employment can be made available for the low-income farmers.
Tourist Industry
Northwestern Montana is richly endowed with scenic and recreational attractions. The people of the nation look toward the. Rocky Mountains as a vaction land without peer, and the people of Montana, accustomed as they are to ragged natural beauty, consider the Flathead one of the prime playground areas of the s t a t e . it is difficult to estimate just how much of the state's tourist trade comes to the Flathead area, but it is undoubtedly true that the area shares to a very large extent in the annual volume. The number of tourists visiting Glacier National Park furnishes a starting point for an estimate. In 1957, there were 759,161 visitors
3/ in Glacier National Park.— ' There are also many visitors who come to the area who do not visit the Park.
I/
2/
Franklin Schroeder., op.cit., pp. 64-66.
: 1
George Sundborg, op.cit., p. 63.
Hungry Horse News, January 24, 1958, p.
I.

“ 40
There are many attractions in the County that add to its recrea­ tional attractiveness. They include such things as boating, fishing, hunting, hiking, riding, skiing, golfing, packing and swimming. The tourists coming to this area provide employment opportunities not only at the tourist, resorts and sporting goods stores, but also at hotels, eating places, gas stations', garages, theatres, mercantile establish­ ments , and many other types of trade and service enterprises.
"Estimates of the average expenditure per day by United States tourists vary widely. Many state surveys show averages running between
$5 and $7 per day, but may not include all types of tourist expendi­ tures. The National Association of Travel Organizations estimates that the average expenditures per tourist for lodging, food, gasoline, and other purchases are about $10 per day. "Thus if a community can attract a couple of dozen tourists a day throughout the year, it. would be economically comparable to acquiring a new manufacturing industry with an annual payroll of $ 1 0 0 , 0 0 0 . Money spent by the tourist is new money brought into the community. Moreover, this money is spent in such a way that it must be widely and more-or-less evenly dispersed..
Tourist money goes to the farmer, the professional man, and the business-
3/ man.-/ l / United States Department of Commerce, Your Community Can Profit from the Tourist Business, Government Printing Office, Washington, D. C.,
1957', p. 22.
Ibid., p. I.
5 / Ibid., p p . 1-5.

- 41 -
The potential tourist industry offers more seasonal and part-time and perhaps even full-time, employment possibilities for farmers in
Flathead County. The number of such opportunities is difficult to esti­ mate, but they do add something to the number of seasonal job opportuni­ ties. Sundborg says that the tourist industry during its season may .
even be as important as logging for furnishing e m p l o y m e n t . A l t h o u g h this type of employment would come largely during the summer months, the farmers busiest period, it would help the.farmers with excess family labor. It should also be mentioned that labor in the tourist industry ' has a lower value than labor in the manufacturing industries. The tourist industry might provide several hundred seasonal employment opportunities if all potential developments were utilized.
Other Service Industries
’"Flathead County, by virtue of its location, attracts, business from a large surrounding area. Kalispell is the main trade and service center of northwestern Montana. The wholesale and retail trade in Kalispell is equal to the combined trade of all other places in Flathead, Lincoln,
Lake, and Sanders Counties. However, much of the service business of the area and indeed some of that of Kalispell and Flathead County goes to
2 / outside trading centers:, notably Missoula and Spokane:;”-' Appendix Tables
II, III, and IV list the retail and wholesale establishments in Flathead
-i/ George Sundborg, og
5 / Ibid., p. 72.
, p . 72.

42 -
County along with the number of people employed and income p r o ­ duced.
Future employment in the service industries will depend upon the general progress and growth of the County. The possible increase in population due to the potential developments in the forest industry, agricultural industry, tourist industry, etc., will mean -new opportuni­ ties for business and service enterprises of all kinds. Even if there is no increase in population, the increased purchasing power of those now in the low-income bracket will mean some new opportunities in the service industries. The estimated number of jobs that might be made available may range as high as several hundred, depending on the amount of development and population increase.
Labor Force
County through the development of new industries or the expansion of
\ existing industries, there is an adequate work force in the County at the present time. According to the Montana Employment Service at Kalispell, there were approximately 2,100 job applicants or seekers in Flathead
County on June 30, -1958. Of these, an estimated 200 were part-time farmers seeking either full or part-time employment. At the current t i m e .there appears to be a surplus of labor available in the County. In
1956, the Montana Employment Service estimated that at least 600 persons would be available for employment in a 25 mile radius of Kalispell.

- 43
This number is in addition to the number of persons normally looking for work.
The number of hired workers in the different industries in Flathead
County are. presented in Table XV.
TABLE XV. NUMBER OF HIRED WORKERS IN FLATHEAD COUNTY, JUNE 30, 1958
Total work force of
Lumber manufacturing (sawmill, logging, woodworking)
Wholesale and retail
.Service
Utilities
Construction
Manufacturing (other than lumbering)
Government, State and Federal
Schools
Highway
Park Service
Bureau of Reclamation
Forest Service
Other government
State government, other
367
98
263
69
200
82
75
Finance and real estate
County government
Agriculture
7,920
1,000
2,000
662
900
500
1,000
1,154
254
175
275
V
Sources Montana State Employment Service, Kalispell, Montana, June
30, 1958.

PART III
EMPLOYMENT, INCOME, BENEFITS
AND ADJUSTMENT PROCESSES
.Employment
The number of farms that Flathead County can adequately support may vary from 480 to 960. The number of farms that can be adequately sup­ ported depends on the criteria used for determining adequacy. The addi­ tional or excess farmers should be provided with either full or part- time employment opportunities. From the comparisons made, the estimated number of full or part-time jobs that would have to be provided ranges from approximately 480 to 960.
The range of employment opportunities that can be provided may vary from just a few jobs to well over 1,000. This range, determined after examining the potential industrial developments, depends on the economic feasibility of these developments. Another factor affecting this pre­ diction is the order in which the developments occur. If there are an adequate number of nonfarm employment alternatives available for the low- income farmers of the County, and these alternatives are accepted by them, what will be the additional income produced and the benefits accruing to the low-income farmers and to others in the County?
Income
If we assume that the number of jobs provided in the County would be equivalent to 700 full-time jobs and that these employment opportunities

- 45 are accepted* What Would be the additional income received by each person and the total additional income produced in the County? The assumption of
700 full-time jobs is based dh an approximate midpoint of the range of jobs needed to provide the excess farmers in the County with off-farm work.
Looking back at Part II of this study* it is evident that the largest proportion of potential industrial development is in the manufacturing field, and the majority of jobs provided Will probably be in this category.
According to the Montana Employment Service, the average Weekly earnings of a Worker in the manufacturing industry is $ 8 6 ' . 4 3 If the average employee in this industry were to work 48 weeks each year, his annual salary would be approximately $4,149. Thus if there were 700 Workers earning such an amount* the wage income of the County Would increase by
$2,904,300. At the same time, the farm income of the County would pre- sumably be divided among fewer people, thus raising the average income ^er farm. Since the most probable areas of development are the forest, agri­ cultural and tourist industries, it is optimistic to assume that all of these 700 jobs will be in the manufacturing field. Some of these jobs
Will be in the lower paying service industries, thus lowering the total wage income of the County.
Benefits and Adjustment Processes
Flathead County is hot a low-income County in comparison to the lew- income counties in the southeastern part of the United States. But, it

— 46 «■ is representative of the moderate low-income counties in Montana. There­ fore, implications of benefits that may accrue by increasing the levels of income to the low-income farmers may apply not only to Flathead
County, but also to other low-income areas in Montana and to a lesser extent to low-income areas in other parts of the United States. The nature of these benefits, to whom they accrue, and the processes of adjust­ ment to economic development may be gleaned from studies made in other areas.
l/
Riggs,-' in a study of the upper Tennessee Valley, points out that product markets when industry provides nonfarm employment opportunities for nearby farm operators.
Available nonfarm employment enables farm operators and their families to employ their labor more effectively. The farm family may either migrate to the nonfarm job or remain on the farm and accept part-time industrial employment. In either case, the recombination of resources would lead toward a higher ratio of capital and land to labor, a higher income to the operator who accepts industrial employment, and a higher farm income for those who remain on the farms in the developed area.
This process would result in higher wage rates and' in higher opportunity costs for labor. This change in factor price ratios would force reorgani­ zation of the farm firm. The expected end result would be enlargement of
— ' Fletcher E . Riggs, Income Levels in the Upper Tennessee Valley; A .
Comparative Analysis, Division of Agricultural Relations, Tennessee
Valley'Authority','.Knoxville, Tennessee, September, 1957, pp. 2-Tl.

- 47 of full-time farms and an increase in the number of part-time farms.
Economic development should lead to an increase in the rate of capi­ tal accumulation through the ..-growth of local firms and through the influx of new capital and new firms. When this occurs there should be more capital available for local agricultural uses= In other words, economic development in an agricultural area should result in a decrease in the supply of farm labor and an increase in the supply of agricultural capital
Such increased capital input and decreased labor input would result in a smaller number of larger, more efficient farm units. Another result might be more intensive type agricultural enterprises, with a greater utilization of labor and higher returns to labor.
As an area develops industrially, markets and market facilities become better developed, more efficient, and to some extent more com­ petitive. Merchants in developed areas are inclined to improve and extend their services to local farmers specializing in products that are pro­ cessed by these merchants. Examples of the latter are the extension of credit and the furnishing of technical "know-how" to local farmers.
The increased population and incomes accompanying industrial deve­ lopment usually lead to bore and better public services such as health, education, transportation and communication facilities. All of these changes help to increase the levels of living in adjacent rural areas and to promote further economic development.

- 48 -
In summary, Riggs concludes that high income counties are character­ ized by;
(1) A relatively high degree of industrial employment.
(2) A greater proportion of the population employed.
(3) A population more heavily engaged in the higher paying non- agricultural categories of employment.
(4) Higher average returns per worker in both agriculture and manufacturing.
(5) Greater investments in health and education.
(6) A larger percentage of the population in the more productive
(18-59 years) age group.
(7) The net inmigration of population from other areas to take advantage of the higher-income alternatives to farming which are available.
The effects of industrialization on rural. Louisiana were presented in a progress report by Price, Bertrand, and O s b o r n e . T h e study, con­ ducted in 1957, made comparisons of the levels of living of plant employees in 1957 and 1950. The change was found to be quite signifi­ cant. A larger proportion of the workers now possess three or more of the items — electric lights, running water, refrigerator, washing machine, radio, television, and telephone— than in 1950. This indicated that the general level of living of factory workers had risen substantially. The urban employees had the highest level of living, with the rUral-nonfarm and rural-farm following in order.
■i/ Paul H. Price, Alvin L . Bertrand, and Harold W. Osborne, The Effects of Industrialization on Rural Lousiana; A Study of Plant Empoyees,
A Progress Report,- Louisiana State University, Baton Rouge, Louisiana,
January, 1958, pp. 34-63. ■

-
49
-
The plant employees reported that the plant had contributed to the increased level of living by providing employment and steady income.
Over one-third of the employees lived on farms and half of these considered themselves to be farm operators. Sixty-two percent of t h e ' farm residents reported no change in farm operations. The rest had changes such as decreases in cultivated acreages or in herds and flocks,' or the substitution of an enterprise requiring less care.
In summary, plant employment meant higher levels of living for farmers on low-income farms. It was usually possible to maintain the income of the farm at the same time that one member of the family took off-farm employment. Also, the plant employees reported that the increased incomes and levels of living led to a more stable and pro­ ductive community.
B i s h o p , ^ in a study of the effects of industrial development on low-income agriculture in. the Southeast, presented the following conclusions. .
Industrial development which results in a transfer of labor from farm to nonfarm employment and an increase in real incomes brings' about an increase in demand for farm products, especially locally produced perishables.
' As in the other two studies, Bishop found that if the returns to farm labor were changed after industrial development, the supply of fgrm
T/ ' ~ ~ — — _ ~ —
Charles E & Bishop, "Economic Development and Adjustments in South- ■ eastern Low^Income Agriculture," Journal of Farm Economics, 'Voluiiie
XXXVI, Number 5, December, 1954, pp. 1151-58. „ '

- 50 products may be altered. If the labor transferred from the farm into nonfarm employment had not been used in the farm operations, there would be no change in the farm operations. But, if the off-farm employment competed with the farm employment, then adjustments would take place.
These adjustments would most likely be decreases in the production of farm commodities requiring large quantities of labor in relation to other resources, and changes in size of farms.
Increases in income resulting from off-farm Wdrk results in. a lar­ ger proportion of the earnings being invested in expanding the farm busi­ ness and in increasing the productivity of resources employed in agricul­ ture. For example, a higher proportion of operators on part-time farms purchase tractors and other labor saving equipment than operators of other low-production farms.
Bishop also found that when the incomes of low-income farmers were raised, their purchases of consumer durables and expenditures for health and education increased. This lead to increased levels of living for them and a more progressive community.
Bringing together these studies and findings from other studies, it is possible to describe the benefits accruing to the low-income farmers, the agricultural economy, the rural communities, and the County as a whole.
The levels of living of the low-income farmers are increased when their incomes are raised. This is because of their increased potential as consumers of goods and services produced by other segments of the

- 51 economy. A l s o , the low-income farmer spends more for educational pur­ poses, health .practices, and needed capital improvements on their farms.
The higher and more stable income provided by off-farm employment makes the low-income farmer more stable and productive.
Industrial development that results in higher incomes and levels of living for low-income farmers also benefits the rest of the community.
Service facilities are increased along with the availability of managerial and technical knowledge. Markets and market facilities are more readily available in an area of industrial development. The base of wealth for taxation is broader. This increase in revenues leads to investment in needed public improvements. Public education, transportation,communication, health' and welfare services are improved in the area.
All this leads to a higher proportion of the population employed, and possibly at a higher income level. The labor productivity in the farm and nonfarm sectors is increased. By increasing the incomes of the low-income farmers, the community can become more productive and stable since the potential of the population as consumers of goods and services has in­ creased. Thus, benefits accrue not only to the low-income farmers, but also to the County as a whole.

PART IV
SUMMARY AND CONCLUSIONS
Summary
Flathead County has an excess of farms in the low-productions classi­ fication. Nonfarm employment opportunities for operators and their families on these farms is one means of improving their incomes. The range of employment alternatives needed was determined to be between
480 and 960 Lf the average income per farm was to be made equivalent,to that of the United States Or to that of Montana.
Because of the surplus of children being born on farms that cannot be absorbed into agriculture, there arises the need for a program to utilize and develop? the human resources of agriculture more fully. This can be done by providing either full or part-time employment opportunities
Examination of the resources available in the County and their potential use showed that the employment opportunities could range from
just a few jobs to over 1,000. This depends on the economic feasibility of these developments and upon which developments occur first. The most promising developments are considered to be in the forest, tourist, and agricultural industries.
The potential development of resources in the County is sufficient to provide the needed employment opportunities, and it was judged that a reasonable degree of development would provide 700 additional full-time jobs. If most of these jobs were in manufacturing type industries, the

-
53
wage income for the County would increase by two or three million dollars per year. At the same time, the farm income of the County would presuma­ bly be divided" among fewer people, thus raising the average income per farm.
The income levels of low-income farmers could be raised. Benefits would accrue to these farmers and their families and to other persons in the County in various ways. Certain processes of adjustment accompany­ ing the changes in economic development occur in the form of size and type of.farm operation.
Conclusions
The conclusions of this study are in accord with the hypothesis presented in the beginning of this report. The findings indicate that with full development of resources, benefits accrue to the low-income farmer, the rural communities, the agricultural economy, and the County as a whole and their economic and social well-being is enhanced. This is the result of providing low-income farmers With nonfarm employment opportunities through the development of new industries and expansion of existing industries.
Benefits accruing to the low income farmer are in the form of higher levels of living, including better education, better health practices, and economic stability and productivity. Adjustments in the size and type of farm operations may occur after resource developments.
Benefits accruing to the rural communities, the agricultural economy, and the County as a whole take various forms. The tax base is broadened

- 54 in the County, resulting in better public services for all the popula­ tion= Markets and market facilities become better developed and more efficient'. The amount of capital is increased for both farm and nonfarm people, thus resulting in needed Capital improvements on farms and in businesses. A larger proportion of the population is gainfully employed.
The County as a whole becomes more stable and productive.
Impediments to the type of adjustments needed to attain these goals include the lack of technical knowledge* the lack of economic feasibility studies for industry in rural areas, and the lack of information on employment opportunities for rural people. Migration is hindered by the geographic and occupational immobility of older people. Better credit facilities for improvements on low-income farms are needed along with financial aid for promoting migration from farms*
Further Research
Further research concerning the low income problem in Montana is needed. Research should be designed to explore in greater detail the opportunities for new industries in rural areas, to provide technical information on industries suitable for rural location* and to improve the efficiency of industries processing and distributing farm products.
After industrial development has occurred in an area, research into the alternative uses of agricultural resources in the area may be heeded*
This is especially true if the development occurs in agricultural indus­ tries. Research regarding the types of adjustments that may accompany development is also needed. Such research would deal with changes in

- 55 size or type of farms„ Research relating to the manner in which deve­ lopment may enhance the efficiency of remaining farmers in a low-income area and the effects of development on farm income levels is needed. Such research may be designed to determine optimum and minimum size of differ­ ent types of farm units.
Research and assistance, other than that in the field of industrial development and off-farm employment alternatives, for the benefit of low-income farmers includes (I) extension .and technical assistance,
(2) agricultural services for part-time farmers, (3) credit and financial management, (4) nonfarm employment information and mobility of farm people, (5) vocational training, (6) health, education^ and other public services, and (7) motivation to attain an improved level of economic well-being.

APPENDIX

- 57 -
TABLE I. DISTRIBUTION OF MANUFACTURING ESTABLISHMENTS BY NUMBER OF
EMPLOYEES AND BY MAJOR INDUSTRY GROUPS FOR FLATHEAD COUNTY,
1954.a/ .
" '
Establishments by
Major Industry Group
1-19
Employees
Total Establishments
Food and kindred products
Lumber and wood products
Printing and publishing
Leather and leather goods
Stone, clay and glass products
Fabricated metal products
Machinery, except electrical
Transporatiop equipment
I
'I
I
96
7
74
5
2
2
Miscellaneous manufactures,
(ordinance and accessories) 3
20-99
Employees
22
I
19
-
2
-
-
-
-
100 Employees arid Over
2
-
2
-
-
-
-
-
-
Sources United States Department of Commerce, Bureau of the Census,
1954 Census of Manufactures.

- 58 -
TABLE II. WHOLESALE ESTABL
COUNTY, I954.i/
(
SALES FOR FLATHEAD
Number of
.Establishments
Payroll Sales
Merchant -wholesalers
Other operating types
Total
26
21
47
-—
$14,410,000
8,041,000
$1,426,000 $22,451,000
Source: United States Department of Commerce, Bureau of the Census,
1954 Census of Business.

- 59 -
TABLE III. RETAIL TRADE ESTABLISHMENTS, SALES, PAYROLL, AND PERSONNEL
FOR FLATHEAD COUNTYj 1954.5/
Establishments
Total
With payroll
Sales
Total, all establishments
Establishments, with payroll
Total payroll, entire year
Paid employees, work week ended nearest Nov. 15
Total
Full work week
Total proprietor (unincorporated business only)
461
337
$40,975,000
$38,565,000-
$ 3,980,000
1,519
1,262
497
■§/ Sources United States Department of Commerce, Bureau of the Census,
1954 Census of Business.

-
60
-
TABLE IV. RETAIL TRADE ESTABLISHMENTS BY KIND-OF-BUSINESS GROUP, NUMBER
OF ESTABLISHMENTS, AND ANNUAL SALES, FLATHEAD COUNTY, I954.A/
Kind-of-Business Group
Number of
Establishments
Annual
Sales
Food stores,
Eating, drinking places
General, merchandise group
Apparel, accessories stores
Furniture, home furnishings, appliance dealers
Automotive group
Gasoline service stations '
Lumber, building materials, hardware, and farm equipment dealers
Drug stores, propriety stores
Other retail stores
Nonstore retailers
65
120
16
33
21
30
61
32
10
58
15
$9,322,00
3,477,000
1,989,000
8,459,000
3
,
3 6 0 ,0 0 0
3,862,000
1,109,000
3,426,000
246,000
^ Source: United States Department of Commerce, Bureau of the Census,
1954 Census of Business.

BIBLIOGRAPHY
American Forest Products Industries, Incorporated, Mo'ntana" Forest Facts,
1955.
Bishop, Charles E., "Economic Development and Adjustments in Southeastern
Low-Income Agriculture," Journal of Farm Economics, Volume XXXVl,
Number 5, December, 1954.
Bonneville Power Administration in Cooperation with Flathead Electric'
Cooperative, Analysis of Power Requirements, Flathead Electric
Cooperative, Kali-spell, Montana,' J u n e , 1956. ■
Browder, W. Gorden, and Hoflich, Harold J., Populations and Incomes in
Montana, Bureau of Business and Economic Research, School of Busi­ ness Administration, Montana State University, Missoula, Montana,
Regional Study No. 5, July, 1953.
Hendrix, W. E., "The Low Income Problem in American Agriculture," United
States Agriculture: Perspectives and Prospects', The American
Assembly, Graduate School of Business, Columbia University, May 5,
1955.
Huey, Ben M-., and Hutchison, S. Blair, Marketing Montana Christmas Trees,
School of Forestry Bulletin 2, Montana State University, December,
1949.
Hungry Horse New s , January 24, 1958.
Hutchison, S. Blair, and W i lkstrom, John H., Industrial Opportunities,
Intermountain Forest and Range Experiment Station, Ogden, Utah,
April, 1955.
Long, Erven J., Rehabilitation of Depressed Rural Areas, University of
Tennessee Agricultural Experiment Station, Knoxville, Farm Economics
Bulletin No. 8 ? January, 1956.
Martin, Joe A., Problems of Low Income in Agriculture, The University of
Tennessee Agricultural Experiment Station arid Agricultural Extension
Service, Knoxville, Farm Economics' Bulletin No. 9, January, 1956..
Montana State Employment Service, Montana Labor Market, in Cooperation with the Bureau of Labor Statistics of the United States Department of Labor.,.. Helena, Montana, Supplement, March 15, 1958.
Montana State University, The Montana Almanac, 1957.

-
62
-
Price, Paul H., Bertrand, Alvin L., and Osborne, Harold W., The Effects of
Industrialization on Rural Lbuisiahar A Study of. Plant Employees,
A Progress Report, Louisiana State University, Baton Rouge, Louisiana,
January, 1958.
Riggs, Fletcher E., Income Levels in the Upper Tennessee Valley: A
Comparative Analysis, Division of Agriculture Relations, Tennessee
Valley Authority, Knoxville, Tennessee, September, 1957.
Schroeder, Franklin, Commerce and Industry, Fourth Quattei, 1956.
Sundborg, George, The Economic Base for Power Markets in Flathead County,
Montana, Bonneville Power Administration, October, 1945.
United States Bureau of Mines, The Mineral Industry of Montana, 1955.
United States Department of Agriculture; Development of Agriculture's
Human Resources, A Report of Problems of Low-Income Farmers; Washing­ ton, D . C ., 1955.
United States Department of Commerce, Bureau of the Census, 1954 Census of
Agriculture, Washington, 1956.
United States Department of Commerce; Your Community Can Profit from the
Tourist Business, Government Printing Office, Washington, Di C.,
1957.
Water Supply and Water Pollution Control Program, Public Health Service,
United States Department of Health, Education and Welfare; Summary
Report on Pulp Mill Sites in Relation to Mill Effluent Effects on
Water Quality in Streams in Western Montana and Northern Idaho,
Washington, D. C., 1955.

Il
M O N T A N A STATE UNIVERSITY LIBRARIES I
111
111
I
I l
62 1 0 0
'
39 01
|