UM Study Finds Meagher County a Model for Rural Revival

A new University of Montana study finds that Meagher County — one of the least densely populated counties in the continental United States — has quietly become one of Montana’s most entrepreneurially vibrant communities, driven not by government programs or outside investment but by decades of investment in education, a culture of civic participation, and an unusually high concentration of women-led businesses.

The report, “Thriving Rural Communities: Meagher County, Montana,” was produced by UM’s Rural Entrepreneurship and Leadership Co-Lab and is based on surveys of 56 local business owners and 10 business support organizations, as well as more than 30 qualitative interviews conducted with entrepreneurs and community leaders in spring 2026. The county, home to just over 2,000 residents in the Smith River Valley, encompasses White Sulphur Springs and sits roughly 75 miles northeast of Helena.

“Meagher County’s revival was not driven by a major corporation, a large government program or a single economic development initiative,” said Morgan Slemberger, senior director of UM’s Rural Entrepreneurship and Leadership Co-Lab and principal investigator on the study. “It emerged from decades of investment in people, education, relationships and a supportive community culture that encourages individuals to build, contribute and stay.”

The county’s story defies the arc common to much of rural Montana. Its economy was built on mining and logging, and after the timber sector’s collapse in the late 1970s and early 1980s, Meagher County entered a prolonged period of poverty and population decline. A report from that era named it the lowest-income county in the United States. By 2024, the county’s median household income had essentially converged with the Montana median — a dramatic turnaround visible in census data spanning five decades.

The study identifies five overlapping factors behind the revival. The first is education. Among surveyed business owners, 77% have some form of post-secondary education and 57% hold a four-year degree or higher — far above the state and national averages for rural counties. The researchers attribute much of this to the Charles M. Bair Memorial Trust Scholarship, a privately endowed program established in 1976 by Marguerite Bair Lamb that has invested more than $15 million in higher education for students from Meagher and neighboring Wheatland counties. Among survey respondents who grew up in Meagher County and received a college scholarship, 91% identified the Bair scholarship as the one they received. The trust currently provides eight full-ride scholarships annually, and in 2024 alone awarded more than $735,000 to 35 students.

The second factor is the role of women. Among surveyed business owners, 77% identified as female — nearly double the national average for women-owned businesses. The researchers found a strong pattern of women mentoring one another, supporting new ventures and creating businesses deeply connected to community needs. Many arrived as trailing spouses who followed partners with roots in the region, then built independent enterprises of their own. The concentration of women in business leadership has deep historical roots in a county where women have served as institution builders since the late 1800s — from the Bair sisters, who managed the family estate and created the scholarship trust, to early civic leaders like Rose Gordon, among the first African American civic leaders in the region.

The third factor is civic engagement so pervasive it functions as an economic asset. Ninety-eight percent of surveyed business owners reported volunteering in their community — compared with roughly 49% of all Montanans and 38% of all Americans. The researchers describe what they call a culture of “neighboring” in which community membership is treated as an active, ongoing practice rather than a passive identity, and in which the relationships built through civic life translate directly into business referrals, mentorship, access to informal credit and mutual support during hard times.

Fourth, the county has converted its natural endowments into a functioning destination economy. The hot springs at White Sulphur Springs, the Smith River, Showdown Montana Ski Area, and world-class hunting and fishing draw visitors year-round and support a network of lodging, restaurants, outfitters and retail businesses. The annual Red Ants Pants Music Festival, founded by White Sulphur Springs entrepreneur Sarah Calhoun and drawing 15,000 to 17,000 visitors each summer, was cited repeatedly by respondents as a catalyst for business growth and community confidence.

Fifth, the county retains financial institutions with local roots, including Bank of the Rockies — founded in Meagher County and still locally headquartered — and a Vocal Credit Union branch, at a time when banking consolidation has dramatically reduced the number of locally owned financial institutions in rural Montana.

The report is candid about what the county has not yet solved. Housing is a severe and structural constraint: of the county’s estimated 1,368 housing units, only 702 are occupied year-round, with most vacant units designated for seasonal use. The county has just 193 rental units, with near-zero vacancy. Workforce recruitment, childcare availability, access to capital and commercial space were also cited as significant barriers to growth. Nearly half of surveyed business owners — 49% — said they had never sought outside financing, a figure the researchers describe as reflecting both a cultural preference for self-reliance and a practical shortage of accessible capital options, particularly for women.

The study also notes a looming inflection point: the proposed Black Butte Copper Mine, located roughly 17 miles north of White Sulphur Springs, remains in the environmental review and permitting phase, but if approved would bring approximately 300 jobs and significant economic activity to the county. The community established the Meagher County Stewardship Council, in partnership with the mine’s developer Sandfire Resources America, to identify and mitigate risks and manage potential community benefits.

The report concludes that Meagher County offers lessons for rural communities far beyond Montana, but cautions that many of the factors behind its revival are deeply place-specific and not simply transferable by policy intervention. What can be transferred, the researchers suggest, is the underlying insight: that communities investing in people, relationships and education over long time horizons can build entrepreneurial ecosystems that no single program could engineer.

The study was sponsored by Wells Fargo and the Women’s Foundation of Montana.

By: Montana Newsroom wire