Menard was established near the ruins of an ancient Spanish mission, Santa Cruz de San Saba, which had been abandoned a century before. The town was an early trading post and stop on the north and west cattle trails where a compound of an old Spanish mission just east of town served as a corral, holding up to 3,000 cattle on their way to market. Only a historical marker on F.M. 2092 recalls the history of the mission today.
Currently, sheep and wool production are of primary importance, followed by beef cattle and Angora goats. Legends of a lost silver mine still circulate in area.