Muleshoe is the seat of Bailey County, an area which for a long time was sparsely settled with huge cattle ranches. Early in the 20th century the immense ranches began to break up, and farming was introduced to this area of the High Plains.
Muleshoe was organized in 1926, and named for the muleshoe brand of a famous early ranch. Today, Muleshoe is a center for marketing and shipping of High Plains agricultural products.
Muleshoe Heritage Center, off U.S. 84, is located in the restored Santa Fe depot offering a museum and meeting place. At the center is the "World's Largest Muleshoe" at 22 feet high, and 17 feet wide at its widest point providing a unique photo opportunity.