Economic Analysis of Indemnity Payments for Wolf Depredation on Cattle in a Wolf Reintroduction Area

Authors

Aaron M. Anderson, USDA/APHIS/WS National Wildlife Research CenterFollow
Karen Gebhardt, USDA APHIS Wildlife Services, National Wildlife Research Center, Fort Collins, ColoradoFollow
Katy N. Kirkpatrick, USDA APHIS Wildlife Services, National Wildlife Research Center, Fort Collins, Colorado
David L. Bergman, USDAWildlife Services, Phoenix, ArizonaFollow
Stephanie A. Shwiff, USDA/APHIS/WS National Wildlife Research CenterFollow

Date of this Version

2014

Citation

Published at Univ. of Calif., Davis. 2014. Pp. 413-418.

Comments

U.S. Government Work

Abstract

Mexican gray wolves were reintroduced into New Mexico and Arizona in 1998. When wolves kill a producing cow, ranchers in the region are eligible to receive an indemnity payment equal to the market value of the lost animal. We developed a model that allows estimation of the present value of the revenue stream that a cow or herd provides and find that if a producing cow is killed, the decrease in the present value of the rancher’s revenue stream is about $1,230. Mean indemnity payments are currently $1,000, implying ranchers are not being sufficiently compensated.