One of the exhibits in the American Prairie National Discovery Center in downtown Lewistown, Montana (Photo by Darrell Ehrlick of the Daily Montanan).
American Prairie recently announced two property acquisitions in Phillips County, one of the seven counties in which we own property. Chuck Denowh, policy director for United Property Owners of Montana, used this announcement to question our presence in Central Montana.
Denowh lists a “parade of horribles” regarding American Prairie, accusing us of hastening the decline of central Montana’s agricultural economy and communities and threatening Montana’s general fund revenues by our non-profit status. He even holds us responsible for increases in food prices.
Mark Twain quipped, “It ain’t what you don’t know that gets you into trouble. It’s what you know for sure that just ain’t so.”
Here’s what we know:
Around 62 percent of Montana’s land is dedicated to agriculture with more than 58 million acres of farms and ranches. A recent article about American Prairie in Gun Dog Magazine noted, “If American Prairie is afflicting the local economy, it hasn’t shown up in the data. In fact, unemployment in the region has gradually fallen since American Prairie was established, and population is up slightly. The agricultural sector is currently at a 10-year high.”
In 2023, 89 percent of our total land base was leased to local cattle ranchers supporting more than 7,000 head of cattle. On lands where our herd of 900 bison graze, American Prairie pays a per capita tax 2.7 times higher than those fees charged for cattle.
American Prairie pays property taxes for land, vehicles and equipment, just like every other rancher. Staff and lessees living on American Prairie land or in nearby communities pay into their local tax bases. American Prairie contributes to increased revenue from lodging taxes as we continue to promote visitation in the region. In the last four years, American Prairie has paid more than $573,000 in taxes (real, personal, use, etc.) to the counties where we own property.
America’s farmers, the world’s most productive, annually produce food surpluses that last year supported exports worth $175 billion. The recent increases in the cost of food are an inflationary phenomenon driven by a massive injection of federal money into the nation’s economy.
Land prices are increasing across the United States, including ranch and farmland in Montana. The 2022 USDA Land Values Summary found the value of pasture land in the state rose by 10.7% per acre between 2021 and 2022, a little less than the nationwide average increase of 11.5%. Data like this indicates that American Prairie is not driving the cost of land.
The growth of American Prairie has little influence on the long-term demographic and economic trends in Central Montana. Extended drought, market fluctuations, international trade policies, personal family decisions and global integrated agricultural markets have much larger impacts.
We buy land from willing sellers and are but one player in the marketplace. We pay market rates and are limited by IRS regulations from paying more than 10% above appraised value. Having an additional buyer in the market place is surely a benefit, and we are helping families secure their futures.
American Prairie is organized in section 501 (c)(3) of the Internal Revenue Code. As such we are exempt from business income tax and our donors receive a tax benefit. It is interesting to note that Montana’s property tax system annually exempts more than $50 million of property taxes for tax-exempt organizations and certain tax-exempt types of property.
Montana’s non-profits play important and often vital roles in our communities. They provide support for cultural and religious institutions, fill gaps in health care, and offer enhanced educational opportunities. Instilled during our nation’s founding, our deeply ingrained culture of philanthropy is the envy of the world. If Denowh wishes to campaign to change this situation, I wish him well.
A final note: Mr. Denowh represents an organization allegedly supporting property rights and limited government. Yet he is the ring leader of efforts to use the power of the state to attack the legitimate business practices of American Prairie. Isn’t it ironic that a property rights group seeks to use the cohesive force of government to intervene in the peaceful and voluntary transactions of consenting parties?
Pete Geddes is American Prairie’s Vice President and Chief External Relations Officer. He has been with the organization since 2011.