The present invention includes a method for producing a liquid inoculant containing a desiccant. The method can improve survival and stability of bacteria in liquid inoculants in pack and on seeds. The method includes providing a liquid inoculant of a bacteria grown to a substantially stationary phase. A desiccant treatment containing a desiccant is added to the liquid inoculant to form a partially desiccated inoculant product. The partially desiccated inoculant product can be packaged and stored. The partially desiccated inoculant product can also be applied to seeds.