Proceedings of the Vertebrate Pest Conference
Economic Analysis of Indemnity Payments for Wolf Depredation on Cattle in a Wolf Reintroduction Area
- Author(s): Anderson, Aaron
- Gebhardt, Karen
- Kirkpatrick, Katy N.
- Bergman, David L.
- Shwiff, Stephanie A.
- et al.
Published Web Locationhttps://doi.org/10.5070/V426110635
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.