The sheep industry represents a long-standing component of the United States agricultural landscape, though it is often overshadowed by larger livestock sectors. The size of the national inventory provides a direct measure of the industry’s current status and its contribution to the food and fiber supply. Analyzing this population data, gathered annually by government agencies, offers insight into the health and focus of sheep production today.
The Current National Count
The total inventory of sheep and lambs in the United States, as tracked by the USDA National Agricultural Statistics Service (NASS), is relatively small compared to other livestock. As of January 1, 2025, the national flock totaled approximately 5.05 million head, encompassing animals of all ages and purposes. The inventory is divided into two main categories: breeding stock and market animals.
Breeding sheep accounted for an estimated 3.68 million head of the total population. This segment includes mature ewes, which are females over one year old, and breeding rams. The remaining 1.37 million head are categorized as market sheep and lambs. Market lambs, typically animals under a year old destined for meat production, make up about 94% of the market inventory.
Geographic Distribution and Concentration
Sheep production in the US is geographically concentrated, with the Western states dominating the total inventory. More than two-thirds of the country’s sheep operations are situated across the Southern Plains, Mountain, and Pacific regions. This distribution has remained consistent over the last century, reflecting the suitability of the land for large-scale grazing.
The top sheep-producing states include Texas, California, Colorado, Wyoming, and Utah, which collectively hold a significant portion of the national flock. These states feature expansive tracts of arid and semi-arid rangeland, which are well-suited for traditional range sheep operations. The open spaces in the West provide the necessary forage and infrastructure for managing large flocks, often utilizing public lands for grazing.
In contrast, operations east of the Mississippi River tend to be smaller, pasture-based enterprises. These smaller flocks are often maintained on private land and are more focused on local or niche markets rather than large-scale commodity production.
Historical Trends in US Sheep Production
The current population of around five million sheep is a small fraction of the industry’s peak size. The US sheep inventory reached its historical high during the World War II era, peaking at approximately 56 million head in 1945. The industry was a major supplier of both wool for military uniforms and meat for domestic consumption during that period.
A steep decline followed the post-war peak, with the domestic herd shrinking to roughly one-tenth of its 1940s size. One factor driving this contraction was the widespread adoption of synthetic fibers like nylon and polyester. These manufactured materials were often less expensive than wool and began replacing it in clothing and other textiles, severely impacting the wool market.
Changes in consumer dietary preferences also contributed to the decline, as per capita lamb consumption dropped from around 4.5 pounds in the early 1960s to less than a pound today. Furthermore, the rise of large-scale cattle operations, which were less labor-intensive, drew producers away from sheep farming.
Economic Purpose: Meat vs. Wool
The economic focus of the modern US sheep industry has shifted from its historical roots. For much of the 19th and early 20th centuries, wool was the primary product, with lamb and mutton often considered a byproduct. Today, the majority of the producer’s income is derived from meat sales.
Lamb and mutton production accounts for an estimated 70 to 80 percent of a producer’s total revenue. This financial reality has caused many ranchers to prioritize genetics that yield faster-growing, meat-focused animals. The increasing prevalence of “hair sheep” breeds, which naturally shed their coats and require little or no shearing, demonstrates this shift away from wool as the main economic driver.
While wool remains a product, its declining market value means it is no longer the reason for maintaining large flocks. Niche markets also contribute to the industry’s diversity, including the small but growing sector of dairy sheep. These specialized operations focus on milk production for gourmet cheeses and other products, diversifying the value stream beyond the traditional meat and fiber model.