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EconFirst Associates LLC with HSUS Support WILD HORSE MANAGEMENT SYSTEM: POPULATION PROJECTION & COSTING MODEL

EconFirst Associates LLC with HSUS Support WILD HORSE MANAGEMENT SYSTEM: POPULATION PROJECTION & COSTING MODEL

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Page 1: EconFirst Associates LLC with HSUS Support WILD HORSE MANAGEMENT SYSTEM: POPULATION PROJECTION & COSTING MODEL

EconFirst Associates LLC with HSUS Support

WILD HORSE MANAGEMENT SYSTEM:

POPULATION PROJECTION & COSTING MODEL

Page 2: EconFirst Associates LLC with HSUS Support WILD HORSE MANAGEMENT SYSTEM: POPULATION PROJECTION & COSTING MODEL

Horse Population Management

Over Populated

Range

Desired Range Population

Gather?

Remove?

Short & Long Term Holding

NoYes

NoYes

Adoption

Foaling

Contraception

Page 3: EconFirst Associates LLC with HSUS Support WILD HORSE MANAGEMENT SYSTEM: POPULATION PROJECTION & COSTING MODEL

3

Achieve target range populations

Treat wild horses humanely

Respect Budget Constraints

Goals of Wild Horse Management

Page 4: EconFirst Associates LLC with HSUS Support WILD HORSE MANAGEMENT SYSTEM: POPULATION PROJECTION & COSTING MODEL

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Range populations grow as much as 25% /Yr.

Therefore frequency & size of removals grow

CURRENT APPROACH NOT SUSTAINABLE

High pop. growth means more young horses

Therefore longer time in holding facilities

Page 5: EconFirst Associates LLC with HSUS Support WILD HORSE MANAGEMENT SYSTEM: POPULATION PROJECTION & COSTING MODEL

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Federal budget constraints will limit

BLM’s Management Options

Therefore costs must be considered if this

committee’s recommendations are to endure

The BUDGET must be considered

Page 6: EconFirst Associates LLC with HSUS Support WILD HORSE MANAGEMENT SYSTEM: POPULATION PROJECTION & COSTING MODEL

Population ModelStarting range

population

Ending Range Population

Short & Long Term

Holding

Add Foals

Subtract Deaths

Environmental Impacts

(weather, drought, etc.)

Foaling Probability

Contraception Effectiveness

Subtract Removals

Survival Probability

Gather Efficiency

Page 7: EconFirst Associates LLC with HSUS Support WILD HORSE MANAGEMENT SYSTEM: POPULATION PROJECTION & COSTING MODEL

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Simulates Probable Population Outcomes

1 2 3 4 5 6 7 8 9 10 Year

Page 8: EconFirst Associates LLC with HSUS Support WILD HORSE MANAGEMENT SYSTEM: POPULATION PROJECTION & COSTING MODEL

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Optimize Population Intervention

Optimize Use of Scarce Resources

Optimize Population Target Levels

Optimize within Budget Constraints

This System Adds Optimization to Simulation

Page 9: EconFirst Associates LLC with HSUS Support WILD HORSE MANAGEMENT SYSTEM: POPULATION PROJECTION & COSTING MODEL

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Successful Management will Optimize Initial Plan

and Adjustas Data is Augmented

Page 10: EconFirst Associates LLC with HSUS Support WILD HORSE MANAGEMENT SYSTEM: POPULATION PROJECTION & COSTING MODEL

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Planning is a Moving TargetGiven Variability of Range

Environments

Active Interaction with Simulations

Page 11: EconFirst Associates LLC with HSUS Support WILD HORSE MANAGEMENT SYSTEM: POPULATION PROJECTION & COSTING MODEL

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Successful Management will Includeall HMAs

Page 12: EconFirst Associates LLC with HSUS Support WILD HORSE MANAGEMENT SYSTEM: POPULATION PROJECTION & COSTING MODEL

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Successful Management will Require

Better Data Collection

Page 13: EconFirst Associates LLC with HSUS Support WILD HORSE MANAGEMENT SYSTEM: POPULATION PROJECTION & COSTING MODEL

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I. Dynamic Population Simulation model

II. Economic Costing Model

III. Management Optimization Model

IV. Population & Range Database System

MODEL COMPONENTS

Page 14: EconFirst Associates LLC with HSUS Support WILD HORSE MANAGEMENT SYSTEM: POPULATION PROJECTION & COSTING MODEL

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Simulates single or multiple HMAs

Adjusts as new data becomes available

Integrates population simulation and costs

Combines simulation and optimization to reach population and cost targets

The Projection Model

Page 15: EconFirst Associates LLC with HSUS Support WILD HORSE MANAGEMENT SYSTEM: POPULATION PROJECTION & COSTING MODEL

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Find optimum mix and timing of

Gathers, Removals and Fertility Treatment

A Tool to Manage Wild Horse Areas

Page 16: EconFirst Associates LLC with HSUS Support WILD HORSE MANAGEMENT SYSTEM: POPULATION PROJECTION & COSTING MODEL

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Timing & Frequency of Gathers

Extent of Fertility Treatment

Reach or adjust AML targets

Subject to Cost constraints

Optimization under Uncertainity

Page 17: EconFirst Associates LLC with HSUS Support WILD HORSE MANAGEMENT SYSTEM: POPULATION PROJECTION & COSTING MODEL

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Given budget, determine reachable AMLs

Subject to carrying capacity constraints

Subject to min-max levels

Reverse Optimization

Page 18: EconFirst Associates LLC with HSUS Support WILD HORSE MANAGEMENT SYSTEM: POPULATION PROJECTION & COSTING MODEL

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Simulation Examplefor Single HMA

Page 19: EconFirst Associates LLC with HSUS Support WILD HORSE MANAGEMENT SYSTEM: POPULATION PROJECTION & COSTING MODEL

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Single HMA: Baseline Simulation if no Mgt.

0

2,000

4,000

6,000

8,000

10,000

12,000

0 1 2 3 4 5 6 7 8 9 10 11 12

Years

12 Year Count of Horses in HMA

No Mgt.

Base Year = 3,750

Year 12 = 10,418

Page 20: EconFirst Associates LLC with HSUS Support WILD HORSE MANAGEMENT SYSTEM: POPULATION PROJECTION & COSTING MODEL

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If Planned Removals every 3 yrs

Base Year 3,750

0

2,000

4,000

6,000

8,000

10,000

12,000

0 1 2 3 4 5 6 7 8 9 10 11 12

Years

12 Year Count of Horses in HMA

No Mgt.

Target Mgt. level

with Mgt.

AML target = 333

Page 21: EconFirst Associates LLC with HSUS Support WILD HORSE MANAGEMENT SYSTEM: POPULATION PROJECTION & COSTING MODEL

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Planned Removals every 3 yrs – relaxed AML

0

2,000

4,000

6,000

8,000

10,000

12,000

0 1 2 3 4 5 6 7 8 9 10 11 12

Years

12 Year Count of Horses in HMA

No Mgt.

Target Mgt. level

with Mgt.

AML target = 1,500

Page 22: EconFirst Associates LLC with HSUS Support WILD HORSE MANAGEMENT SYSTEM: POPULATION PROJECTION & COSTING MODEL

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If Only 1 Removal & Treatments Every 3 Yrs

0

2,000

4,000

6,000

8,000

10,000

12,000

0 1 2 3 4 5 6 7 8 9 10 11 12

Years

12 Year Count of Horses in HMA

No Mgt.

Target Mgt. level

with Mgt.

Page 23: EconFirst Associates LLC with HSUS Support WILD HORSE MANAGEMENT SYSTEM: POPULATION PROJECTION & COSTING MODEL

Single HMA Simulation

12 Year PV Cost* ($millions)

12 Year dollar outlay ($millions)

A. Removals every 3 yrs.

22.2 26.5

B. Removals with relaxed AML

20.0 24.7

C. 1 removal + multiple fertility treatments

15.7 18.5

Savings (B over A) 2.2 1.8

Savings (C over A)6.5

(29.3% savings)8.0

(30.2% savings)

23

Cost Comparisons

*Present value at 4.3% (CBO)

Page 24: EconFirst Associates LLC with HSUS Support WILD HORSE MANAGEMENT SYSTEM: POPULATION PROJECTION & COSTING MODEL

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Simulation Approximation for All HMAs

Page 25: EconFirst Associates LLC with HSUS Support WILD HORSE MANAGEMENT SYSTEM: POPULATION PROJECTION & COSTING MODEL

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Age Distribution on Range

0 2 4 6 8 10 12 14 16 18 20-5%

0%

5%

10%

15%

20%

25%

30%1. Based upon Garfield flat 1993

Age of Horses

Share

of

Tota

l

0 2 4 6 8 10 12 14 16 18 20-5%

0%

5%

10%

15%

20%

25%

30%4. Based upon Grange 1995

Age of Horses

Share

of

Tota

l

Page 26: EconFirst Associates LLC with HSUS Support WILD HORSE MANAGEMENT SYSTEM: POPULATION PROJECTION & COSTING MODEL

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Young Horses Expand Rapidly

0 2 4 6 8 10 12 14 16 18 20

-5%

0%

5%

10%

15%

20%

25%

30%

Age of Horses

Sh

are

of

Tota

l

All approach Log Normal distribution over time

Page 27: EconFirst Associates LLC with HSUS Support WILD HORSE MANAGEMENT SYSTEM: POPULATION PROJECTION & COSTING MODEL

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Does approach work with different initial population distributions?

Does it work for multiple HMAs?

Does it incorporate new data as it becomes available?

Tests of Robustness

Page 28: EconFirst Associates LLC with HSUS Support WILD HORSE MANAGEMENT SYSTEM: POPULATION PROJECTION & COSTING MODEL

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All HMAs : 3 Year Phase-in Removals Only

-

50,000

100,000

150,000

200,000

250,000

0 1 2 3 4 5 6 7 8 9 10 11 12

Years

12 Year Count of Horses in HMAs

No Mgt.

Target Mgt. level

with Mgt.

AML target = 24,750

Base Year = 40,044

Page 29: EconFirst Associates LLC with HSUS Support WILD HORSE MANAGEMENT SYSTEM: POPULATION PROJECTION & COSTING MODEL

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All HMAs : 3 Year Phase-in With Treatment

-

50,000

100,000

150,000

200,000

250,000

0 1 2 3 4 5 6 7 8 9 10 11 12

Years

12 Year Count of Horses in HMAs

No Mgt.

Target Mgt. level

with Mgt.

AML target = 24,750

Page 30: EconFirst Associates LLC with HSUS Support WILD HORSE MANAGEMENT SYSTEM: POPULATION PROJECTION & COSTING MODEL

Simulation of HMAs 12 Year PV Cost* ($millions)

12 Year dollar outlay ($millions)

A. Removals every 3 yrs. (limited treatment at best)

346.8 468.6

B. 1 removal + multiple fertility treatments

208.5 264.6

Savings (B over A)138.3

(39% savings)204.0

(43% savings)

30

Cost Comparison All HMAs

*Present value at 4.3% (CBO)

Page 31: EconFirst Associates LLC with HSUS Support WILD HORSE MANAGEMENT SYSTEM: POPULATION PROJECTION & COSTING MODEL

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I. Dynamic Population Simulation model

II. Economic Costing Model

III. Management Optimization Model

IV. Population & Range Database System

MODEL COMPONENTS

Page 32: EconFirst Associates LLC with HSUS Support WILD HORSE MANAGEMENT SYSTEM: POPULATION PROJECTION & COSTING MODEL

EconFirst Associates LLC with HSUS Support

WILD HORSE MANAGEMENT SYSTEM:

POPULATION PROJECTION & COSTING MODEL