September 9, 2025

Introduction

The reintroduction of gray wolves in Colorado, initiated under ballot measure Proposition 114 and implemented beginning in 2021, has brought approximately 25 wolves into the state over the past two years, and calls for the introduction of an additional 10-15 wolves between late November 2025 and February 2026. As Figure 1 shows, these wolves now roam across an estimated 29 counties, representing both rural agricultural regions and more densely populated areas such as Boulder and Jefferson Counties. While the Colorado Parks and Wildlife (CPW) program was designed to restore ecological balance, the widespread range of the introduced wolf population has resulted in unintended consequences for livestock producers, particularly in areas where grazing lands intersect with known wolf activity zones.

Figure 1

As documented by CPW, between December 2021 and May 2025, Colorado ranchers and farmers have suffered financial losses from 49 confirmed cases of gray wolf depredation. These cases — incidents in which wolves inflict physical trauma resulting in injury or death to livestock — happened in Pitkin, Gunnison, Eagle, Jackson, Routt, Grand, Rio Blanco, and Elbert counties. As of August 2025, at least 65 animals have died or been harmed. Affected livestock include sheep, ewes, cattle, calves, yearling heifers, four herding dogs, and one llama. Cattlemen and producers are left to question why CPW chose to release wolves with known histories of depredation into areas proximate to active livestock operations, raising questions about the agency’s risk assessment protocols and the prioritization of agricultural interests in the reintroduction strategy. 

The reintroduction program was initially projected to cost about $800,000 per year. Instead, it has consumed roughly $8 million in taxpayer funds since operations began in 2021 – this includes $3.5 million in 2024–25 – as expenses for “conflict management” and depredation reimbursements have surged. In 2024 alone, claims for wolf-related livestock losses exceeded $600,000, though the actual payouts were lower. Figure 2 below reports the cost level by fiscal year. The current budget for Fiscal Year (FY) 2025-26 is estimated at approximately $2 million. Relative to FY 2023-24, actual costs have increased by nearly 119%. 

Figure 2

Colorado’s Wolf Depredation Compensation Fund, enacted through Senate Bill (SB) 23-255 signed in 2023, was designed to provide financial restitution to agricultural producers experiencing losses due to wolf-related livestock depredation. The fund’s budget was set at $350,000, however compensation claims from Coloradan ranchers have far exceeded this amount, indicating the compensation framework has severely underestimated the actual economic damages. One example is compensation claims from ranching operations out of Grand County. In this county, approximately 1,800 head of cattle have been exposed to gray wolves since the wolf reintroduction and research indicates CPW assessments undervalue the true economic losses by an average of 43.3%. Many ranchers may accept compensation out of economic necessity rather than adequacy. 

Not only do payments fall short of covering the full market value of affected animals, they also systematically exclude indirect losses such as stress-induced weight reduction, decreased reproductive rates, and operational disruptions. Notably, since the program’s inception in 2021, the average live weight of Colorado cattle has declined by at least 3-5%, suggesting broader systemic effects of predator-induced stress on herd productivity.  

Claims also require extensive documentation and reimbursement is subject to per-animal value caps, up to $15,000, regardless of actual market or reproductive value. Additionally, payments from claims have nearly broken the CWDCF’s modest budget in 2025, with just two claims accounting for more than $340,000 in payouts, leaving minimal funds available for new cases. Ranchers also report difficulties navigating the reimbursement process, including long delays, paperwork burdens, and uncertainty regarding indirect loss coverage. These structural issues contribute to sustained financial hardship for livestock producers operating in wolf-active regions. 

There are now three new livestock depredation claims across three ranches in Grand County totaling approximately $580,000. Approval of these claims would exhaust the existing balance of the CWDCF and send it into a deficit, raising concerns about the long-term fiscal sustainability of the program and its broader implications for public resource allocation and a thriving agricultural sector. CPW has stated they plan to continue the program for at least the next five to six years. 

This study evaluates the economic effects of the gray wolf reintroduction initiated in Colorado in December 2021. It evaluates the true economic impacts of the program and attempts to quantify costs to the agricultural sector while also assessing indirect economic effects on the entire state.  

Key Findings 

• Over the last two years, approximately 25 wolves were introduced in Colorado. CPW plans to introduce an additional 15 wolves in 2026. These wolves roam across an estimated 29 counties, including both rural agricultural regions and more densely populated areas like Boulder and Jefferson counties.
•  Relative to FY 2023-24, actual program costs for gray wolf introduction have increased by nearly 119%.
• The State of Colorado has spent $3.5 million in the past year (between May 2024 and August 2025) on wolf reintroduction efforts – more than triple the amount initially communicated to voters during the 2020 ballot measure campaign. That spending included $1.6 million for staffing, $900,000 for operations, $410,000 for compensating ranchers whose livestock have been preyed upon by the wolves, and $85,000 for “conflict minimization.”
• Each adult wolf is associated with roughly 2 confirmed depredation cases per year.
• CSI estimates each case costs ranchers and farmers approximately $32,000.
• Between 2026 and 2030, the cumulative cost of livestock depredation compensation is projected to total approximately $35.1 million.
• By 2030, when the wolf population is expected to reach a self-sustaining level of 200 wolves, CSI estimates that annual costs will be $12.5 million per year.
• Modeling using REMI forecasts suggests that wolf reintroduction results in substantial economic disruption, including a projected loss of nearly 400 jobs statewide and 170 in areas outside of Denver Metro and South Denver during 2030 alone.
• Between 2026 and 2040, the Coloradan reintroduction program is expected to cost the entire state:
  • Over $334 million in GDP;
  • Over $611 million in lost output from businesses;
  • More than $333 million in forgone personal income; and
  • Roughly $267 million in forgone disposable personal income.
• Cumulatively, by 2040, gray wolf reintroduction is estimated to cost rural Coloradans:
  • Over $200 million in GDP;
  • Nearly $400 million in lost output from businesses;
  • Roughly $140 million in forgone personal income; and
  • Over $120 million in forgone disposable personal income.
• Compensation claims from ranchers out of Grand County – where approximately 1,800 head of cattle have been impacted since the wolf reintroduction – indicate that CPW assessments undervalue the true economic losses to ranchers by an average of 43.3%.
• Since the program’s inception in 2021, the average live weight of Colorado cattle has declined by at least 3%, suggesting broader systemic effects of predator-induced stress on herd productivity.
• At least 65 animals have been harmed or killed as a result of the wolf reintroduction as of May 2025, resulting in an estimated direct cost of $8.15 million.
• While it’s still too early to publish definitive data on deer and elk population declines in Colorado, historical patterns from other states show that wolf reintroduction typically results in a 50% reduction in big game populations such as deer and elk. If similar trends hold, both ranchers and outfitters could face additional substantial long-term economic consequences.
• To date, only the Yellowstone region and the Smoky Mountains have experienced notable economic benefits associated with wolf reintroduction programs. From an economic perspective, this may be attributed to the relatively low population density in areas such as Eastern North Carolina and Yellowstone, which reduces the likelihood of conflict with agricultural and recreational land uses

From Extinction to Expansion: The Story of Colorado’s Wolf Program

In November 2020, Colorado voters narrowly approved Proposition 114, mandating the reintroduction of gray wolves to the state’s Western Slope by the end of 2023. This made Colorado the first U.S. state to mandate wolf reintroduction through a ballot initiative, rather than through federal or administrative action. The measure passed with 50.9% support, reflecting both public interest in wildlife restoration and the controversy surrounding wolf management. 

Figure 3 presents the county-level results for Proposition 114, showing that only 13 of Colorado’s 64 counties approved the gray wolf reintroduction measure. Support was concentrated in urban Front Range counties – such as Boulder (68%), Denver (66%), and Arapahoe (53%) – while most Western Slope and rural counties voted against the initiative.