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Comprehensive Economic Development Strategy CEDS What Do We Do? Where Do We Want To Be? How Do We Get There?
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Where Are We?Passage of the Enlarged Homestead Act of 1909 attracted tens of thousands of homestead farmers into Montana in search of inexpensive land. Farmers were rather well-off until an extended drought and a drop in market prices after World War I ruined them economically. The homestead “bust” forced many farmers to leave the state.Montana’s post-World Water I depression extended through the 1920s and right into the Great Depression of the 1930s. With FDR’s “New Deal,” came the formation of various projects and agencies that benefited the state and marked the first real dependence of the state of federal spending in the 20th century. From 1945-2000, “modern” Montana has been characterized by a slow shift from an economy that relies on the extraction of natural resources to one that a service-based. Agriculture has remained Montana’s primary industry throughout the era. This era also saw the important shift in the state’s transportation system from railroads to cars, trucks, and highways. Economic and major technological advancements also occurred during this period.Up and downs in the economy historically have been caused by escalating oil prices, sharp increases in interest rates, and drought conditions which led to decreasing cattle numbers and sporadic prices for agricultural commodities. A recent addition to the picture is the rising utility costs. Low-commodity prices since the mid-1990s, coupled with rising input costs and poor weather conditions have cut into the financial health of Montana’s farm economy.In February 2006, Montana Governor Brian Schweitzer announced that “Economic development in central and eastern Montana is a priority.” Schweitzer reported that seven years of extreme drought has resulted in regional socio-economic treads comparable to the “dustbowl era” of the 1930s. These socio-economic trends include an aging and declining population, wage and salary income that is both depressed and stagnant, a high prevalence of poverty, and an increasing reliance on federal farm subsidies for farm income. |
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Comments & Suggestions to: WebmasterCopyright © 2009 Eastern Plains Economic Development Corporation. All rights reserved. |
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Revised: March 03, 2010 |