My neighbour isn't the only one who's lost cattle to wolves, it's an ongoing problem in my area with many ranchers. Some years are worse than others. They are afforded compensation through a government program, but only if it can be determined,without a reasonable doubt, that predators have killed the animal. Naturally, as with any governemnt aid program, they aren't always eager to compensate, so the evidence needs to be there. Winter is pretty much the only time this can be ascertained, as most ranchers here have their cattle on large tracts of land during spring,summer and fall (1000's of acres) and they generally don't find enough remains in time to do an "autopsy". Add to this scavenging birds and maggots, and the cause of death is unidentifiable within a matter of a couple of days. Winter brings snow, and tracks will show the struggle of the prey and also what killed it.
You're correct in stating that livestock is strange to wolves and it takes them some time to come to the realization that they're edible. The problem arises, when they do realize it, they will prey on nothing but the livestock due to the relatively little effort they take to kill in comparison to wild animals. These wolves can be trapped/snared, but rarely do even the most prudent and able trappers get the whole pack. Strychnine and cyanide used to be very effective and worked astonishingly well, I've seen 8 dead wolves laying within 100 yards of a "seasoned" cow. However, I don't believe any government agency is permitted to use poison anymore.
Another interesting story is the release of Wood bison in an area of Manitoba. Government biologits believed it would take about 8-10 years for wolves to begin preying on them, and they were correct. Last I heard, the number of bison had plummeted dramatically. An interesting aspect of wolf behaviour, as the bison are pretty much livestock in their eyes.
Coyotes do take their toll and I've actually witnessed 3 taking down a yearling heifer calf some time ago, though I belive this to be a rare occurrence. The fact remains though that they are not nearly as destructive to large livestock as wolves.
.........but now back to the wolf defense thread. I'll be alternating between my Rem 7615, Ruger 220 Swift and soon to be in my hands customized Kimber in 6.5x47 Lapua.