Resource industries (agriculture, mining, lumbering) traditionally dominated Montana's economy, although they have declined during the past decade. A lawsuit with the federal government over the federal lands which supplied much of the state's timber placed the timber industry's future in question, as did the selling by Champion International of its two mills and of its timber lands. While Stimson Lumber purchased the mills from Champion, it rehired only two-thirds of the employers. The mining industry in western Montana was hurt by low international price levels. The closure of Troy Mine, which produced silver, lead and zinc, resulted in the idling of 300 workers. Employment in the services industries has overtaken manufacturing and mining during the 1990s. Diversification into business, engineering, health, and tourism services has stimulated the economy. Annual growth rates averaged 4.67% 1998 to 2000, and the state economy was little affected by the national recession and slowdown in 2001, posting a growth rate of 4.3%. In November 2002, Montana's nonagricultural employment was up 1.1% above the year before, above the national rate. Employment increased in construction, financial and general services, and fell slightly in the manufacturing and transportation and utilities sectors. The announced closing of Stimson Lumber in Libby is expected to cost 300 mill jobs, and another 410 related jobs. Montana's farm sector, contributing directly less than 3% to gross state product, has been severely stressed by a four-year drought. Wheat crop yields in 2002 were the lowest since 1988. Government subsidy payments to Montana farmers, the 4th-highest in the country, amounted to 157% of their net income (that is, net income would have been negative without the subsidies).
Montana's gross state product in 2001 was $22.6 billion, the 4th lowest among the states, to which general services contributed $4.8 billion; government, $3.9; trade, $3.7 billion, financial services, $3.2 billion; transportation and public utilities, $2.5 billion, and construction, $1.3 billion. The public sector in 2001 constituted 17.1% of gross state product, the 7th highest percent among the states.