The Newest Solution to the Challenges Facing Montana’s Ranches and Farms

After living in Montana for nearly twenty years, Clifford Merriman, like a lot of folks here, developed a love for ranching. In 2012, Clifford, 42, and his wife purchased a farm in Phillips County, fifteen miles south of Malta, with a down payment loan from the Farmer Service Agency (FSA) that was enough to cover the cost of equipment and operating expenses. Starting a ranch is challenging, especially in this area where runnable ranches cost around $5 million. Rising land prices, driven by out-of-state investors, make it difficult for young people to manage farming costs.

The Merrimans initially started organic farming: spring and winter wheat, barley, winter rye, safflower, lentils, yellow peas, garbanzo beans, flax and canola, but expanded into cattle ranching as a financial move to stay on the place —but they didn’t have enough range for a large herd. They had only ten cows on their property, which wasn’t economically viable given equipment costs have quadrupled in the last decade and a half. The family still struggled with soaring costs and limited resources.

“It looked like it would be years before we saw a substantial profit due to tax liabilities,” Merriman said. “Since we needed to meet land payments, we might find ourselves in the red, with little left for food, and facing a heavy tax burden. If we engaged in equipment trading, we risked sacrificing our retirement savings – a common struggle among many farmers and ranchers.”

Then, they were invited to run cattle on the Nature Conservancy’s Matador Ranch, a new cooperative ranch south of their home. TNC uses the ranch as a cooperative grassbank, a unique partnership offering ranchers grazing access in exchange for practicing sustainable measures on their home ranches. Ten to fifteen members, who are local ranchers, can sustainably graze their one-hundred-head units of cows and calves during spring, summer, and fall.

The Matador has been a saving grace for the Merrimans, helping them expand their cattle operation and save money they can put toward equipment costs. It’s allowing young ranchers to continue in a Montana way of life from which they would otherwise be shut out.

Montana is currently facing unprecedented challenges to its agricultural scene. As the state’s population grows exponentially, land prices soar, farm equipment costs continue to rise, and many ranches and farms have been forced to shutter businesses. The threat of subdivision looms over many of Montana’s intact working lands. Unable to see a feasible future, children of working farmers and ranchers are leaving rural life to head to urban centers. But there are also significant glimmers of hope today.

In addition to voluntary private land protection tools like conservation easements (also known as land protection agreements), landowners are developing new and innovative solutions to enable farmers and ranchers to keep working lands in the family. The Matador Ranch is one such solution, and it doesn’t just help keep farms and ranches viable; it strengthens the community through mentorship and cooperation.

Nestled in the foothills of the Little Rocky Mountains, the Matador Ranch, managed by Caitlyn Kelly, is the oldest in north-central Montana. It covers 60,000 acres of native grasslands, home to abundant wildlife habitat and one of the planet’s most endangered biomes. The ranch aims to prevent land conversion and help ranchers maintain their herds.

The idea for the Matador originated after a severe drought in 2002, which led many regional ranchers to sell half their cattle. The Matador’s location in the mountains makes it more resilient to drought due to higher precipitation, as does low-density cattle grazing. The Matador is crucial for ranchers’ ability to adapt to climate challenges.

Bringing livestock here was transformative for the Merrimans. “When starting as a young producer, finding a place with good grass for leasing is challenging,” Merriman said.

Kelly agrees. “You need to make a profit to support your family, and affordable grazing helps. If a rancher adheres to everything, we offer discounts and can almost cut their grazing price in half.”

The grassbank fosters conservation and provides affordable grazing, helping early-career ranchers build capital. TNC’s model encourages ranchers to practice conservation on their home properties while receiving discounted lease prices at the Matador. One significant point is that ranchers were required to share pastures for their cattle, which led to more community building and sharing successful practices across the area—a cooperative nature that helps combat the sometimes-isolating nature of rural life. The ranch also supports mentorship and resource sharing, enhancing community ties and encouraging sustainable practices like rotational grazing to help sustain the rural way of life for current and future generations.

“The grassbank allows agricultural producers to build capital,” said Laura Nowlin, executive director of Winnet Aces, who is part of a joint effort to establish a new grass bank with TNC and Rancher Stewardship Alliance. “Local ranchers contribute more money to the local economy than any other industry, including recreation and tourism.”

Members also benefit from sharing equipment and exchanging knowledge with others. More established ranchers who have been in the business for decades sometimes lend out equipment to younger ranchers who cannot afford their own, creating a co-op feel within the community. Some ranchers excel at traditional cowboy skills like roping and riding, while others are skilled in corral work and low-stress livestock handling, allowing everyone to learn from one another.

“It’s part of the unwritten mentorship that happens,” said Kelly.

Merriman says that being a participating rancher on the Matador has helped expand their herd and save on grazing costs through conservation practices.