Is there a religion that believes when people die they become animals?
Just to clarify, transmigration of the soul into an animal definitely does not exist in Buddhism.
Some Native Americans believed spirits were animals and in some cases that the Saguaro cactuses were people’s spirits, but actually becoming an animal after death is not something I have heard of.
If you want to think of it as the circle of life, yes the animals eat the grass upon the ground wherein our corpses biodegrade, thus partaking in some of our energy.