What insurance agents need to know about the cattle ranching landscape

The cattle industry remains a cornerstone of rural economies and a critical piece of the U.S. agricultural landscape. For insurance agents, this sector represents both opportunity and complexity. With fluctuating market dynamics, severe weather challenges and evolving operational practices, staying informed is essential for offering relevant and effective risk solutions to cattle operators.  

Here’s what you, as an insurance agent, need to know about the 2025 cattle landscape to position yourself as a trusted advisor while growing your client base.  

National herd contraction

The 2025 USDA NASS Cattle Report highlights a notable contraction in the U.S. cattle inventory. Total cattle and calves inventory stands at 86.7 million head, representing a 1% decline compared to 2024. Beef cattle are down to 27.9 million head, further reflecting this downward trend.¹ 

Smaller herds mean a higher per-head value. This amplifies the financial risk for farmers and ranchers, as each animal becomes a significant investment. Insurance agents must discuss livestock mortality policies with ranchers, emphasizing the importance of adequate coverage to safeguard these high-value assets.  

Sluggish herd rebuilding

The road to recovery is slow. Beef replacement heifers dropped to 4.67 million head in 2025, and the calf crop for 2024 was slightly below the prior year at 33.5 million head.¹ Many operators are delaying expansion due to rising costs.  

Offer solutions that support farmers and ranchers during this hesitant recovery period. Include coverage options that address operational risks, such as breeding and calving losses, while providing resources on risk management and financial planning to help them remain resilient.  

Regional drought and forage stress

Ongoing drought conditions in states such as Montana and Nebraska are heavily impacting pasture quality. Poor forage conditions compel farmers and ranchers to rely on supplemental feed, significantly increasing operational costs.  

This is an opportunity to highlight the value of drought-related risk management. Offer policies that provide coverage for forage shortages to help operators mitigate financial losses caused by poor weather conditions.  

High cattle prices and market volatility

Cattle prices continue to soar in 2025. Fed steer prices are projected to reach $201/CWT, a 7.3% increase from 2024, while feeder steer prices are expected to climb to $274/CWT, up 8.6%.² 

Higher market values expose farmers and ranchers to greater financial risk. Tailor coverage plans to protect them from volatility in cattle prices, ensuring that their business remains secure even during market disruptions.  

Feedlot efficiency and heavier weights

With lower inventories, operators are feeding cattle longer to reach heavier weights, maximizing returns per head. This trend not only increases revenue potential but also prolongs the exposure period for these animals.  

Feedlot operators require customized coverage that addresses the higher value of their animals and the extended feeding periods. Build policies that align with their operational realities, showcasing your expertise in adapting to industry trends.  

What this means for insurance agents

The 2025 cattle ranching landscape underscores an urgent need for agents to be proactive, informed and solutions-driven. Here’s how you can position yourself as an indispensable partner to farmers and ranchers during this period of change:  

• Understand the data: Stay updated on industry trends using reports from USDA NASS, local agriculture extension offices and market analysis. Knowledge is your key to offering solutions that are both comprehensive and regionally relevant.  

• Provide tailored recommendations: Every farm or ranch operates uniquely. Take time to understand the unique challenges and risks your clients face. Offer specialized policies, whether for livestock mortality, forage losses or equipment coverage, that directly address their needs.  

• Educate and empower your clients: Farmers and ranchers value transparency and knowledge. Share information on topics such as drought planning, market volatility protection and optimal coverage for high-value herds. By educating your clients, you’ll further cement your role as a valued advisor.