The Beat Farmers: Tales of the New West (1985)
A few highlights include opening track "Bigger Stones," which is lighter on the twang and hews closer to the early R.E.M. vibe; a rollicking countrified take on the Velvet Underground's "There She Goes Again" (incidentally also covered by R.E.M.); and the light-hearted honky-tonk "Lost Weekend." The CD reissue appended the follow-up EP, Glad 'n' Greasy (highlighted by a nice take on Neil Young's "Powderfinger"), as well as various demos and live tracks; dunno if it's still available, but definitely worth tracking down.
Here's a live performance of "There She Goes Again":