The Confederate flag is flown with the American flag. And, me, not being from the south, I recognize(d) racism, but was enlightened when talking to southerners about it. The confederate flag is flown more symbolizing the culture and the way of life in the South. The south sees themselves different from the North, but all the same in America. So don't take it as racism, just a symbol.
(Oh, and Montana is amazing, great place. Wish I lived there)