Montana Continues to Sell More State Trust Land Than It Buys

Montana has sold 225 parcels of state trust land since 2018, exceeding recent acquisitions.

The Montana Land Board and Department of Natural Resources and Conservation report that competitive market conditions and program constraints have led to more sales than purchases under the land-banking program, challenging its original intent.

Established in 2003 to modernize trust land management, the land-banking program aims to consolidate land and boost school funding. Since 2018, no new land has been purchased to offset sales, which total 225 parcels averaging about two acres each, generating nearly $32 million. Although the program has historically added more acres than it sold since 2006, rising real estate competition and a statutory cap on purchase prices have limited acquisitions. Four land-acquisition proposals, including a 520-acre parcel in Cascade County, are currently under review. The land-banking account holds over $40 million, yet roughly $5.5 million risks being redirected away from the fund after 2028 if unused.

Pending approvals may determine whether the state can restore balance between land sales and acquisitions.

These dynamics could affect the state’s ability to sustain the land-banking program’s goals of revenue generation and land consolidation amid evolving market pressures.

Montana is selling more state trust land than it’s buying
By Amanda Eggert, Montana Free Press