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