Ranch It Up Radio Show & Podcast

Episode Title: Shrinking Feedlot Cattle On Feed
Hosts: Jeff “Tigger” Erhardt & Rebecca “BEC” Wanner
Date: February 27, 2026

Episode Overview

In this episode, Tigger and BEC focus on the current state of the cattle feeding sector in the U.S., specifically addressing the trend of shrinking feedlot inventories. Drawing from the latest USDA 'Cattle on Feed' report and expert analysis by Darrell Peel, the hosts break down key data and discuss implications for ranchers, feedlot operators, and the broader beef industry. The show aims to provide context for these trends and actionable knowledge for those involved in the working ranch world.

Key Discussion Points and Insights

1. Shrinking Feedlot Cattle Numbers

• USDA Cattle on Feed Report (as of Feb 1st):
  • U.S. feedlot inventories placed at 11.5 million head.
  • This is 1.8% below year-ago levels.
  • Marks the 15th consecutive month of year-over-year declines.
  • Quote (A, 01:29):
    "The latest United States Department of Agriculture Cattle on Feed report placed feedlot inventories at 11.5 million head as of February 1st. Now that total is 1.8% below year ago levels and marks the 15th straight month of the year over year declines."

2. Structure of the Cattle Feeding Sector

• The sector marked by a large number of small feedlots and a concentration of finishing in a few large operations.
  • Of 26,082 U.S. feedlots:
    • About 24,000 have capacities under 1,000 head (92% of feedlots), but accounted for only 12.9% of marketings in 2025.
      • Quote (A, 01:57):
        "Of the nation's 26,082 feedlots, approximately 24,000 have capacities under 1,000 head. While these smaller operations make up 92% of all feedlots, they accounted for only 12.9% of total marketings in 2025."
    • The 2,082 feedlots over 1,000 head were responsible for 87.1% of more than 23 million head marketed.
    • 82 largest feedlots (over 50,000 head capacity) marketed over 8 million head combined (~102,000 per operation in 2025).
      • Quote (A, 02:15):
        "The 82 largest feedlots, each with capacity over 50,000 head, marketed over 8 million head combined, averaging more than 102,000 head per operation for the year."

3. The Importance for Producers

• Data illustrates the ongoing consolidation and efficiency in the feeding sector.
• These trends have practical implications for cow-calf producers, feed sales, and anyone involved in the ranching supply chain.

Notable Quotes & Memorable Moments

• On Feedlot Consolidation:
  "Those with more than 32,000 head capacity marketed over 58% of the fed cattle in 2025." (A, 02:08)

• On the Role of Large Operations:
  "The 82 largest feedlots...marketed over 8 million head combined, averaging more than 102,000 head per operation for the year." (A, 02:15)

Timestamps for Key Segments

• 01:29 – Breakdown of the USDA On Feed Report:
  Feedlot inventory numbers and their significance.
• 01:57 – Analysis of Feedlot Size and Market Share:
  Differentiation between small and large feedlots, and implications for market power.
• 02:15 – Focus on the Top Feedlots:
  Impact and scale of the largest feedlots.

Podcast Tone & Language

The hosts maintain a practical, informative tone grounded in real-world ranching experience. The discussion is direct, aiming to equip listeners—producers, ranchers, and those in the agricultural community—with up-to-date market intelligence and perspective on industry trends.

Recap

• The U.S. feedlot sector continues to contract, with inventories down and consolidation in larger operations.
• Most feedlots are small, but the great majority of cattle are marketed through a few large feedlots.
• Understanding these shifts is crucial for strategic planning in the beef industry.

"And that is your Ranch It Up. Heard it here. Weekly Recap." (B, 02:55)

This summary equips listeners with a clear, concise understanding of the current feedlot situation, market structure, and the relevance for America’s ranching community.